Wednesday, August 22nd, 2018


Oil gains after biggest US crude stock drop in four weeks

NEW YORK, Aug 22 — Oil held gains after a US government report showed the biggest decline in crude inventories since late July. Futures in New York advanced as much as 2.7 per cent today. Crude stockpiles fell 5.84 million barrels last week, the…

Credit Suisse freezes US$5b of Russian money due to US sanctions

ZURICH, Aug 22 — One of Switzerland’s largest banks, Credit Suisse, has frozen roughly 5 billion Swiss francs (RM20.5 billion) of money linked to Russia to avoid falling foul of US sanctions, according to its accounts, further increasing…

US dollar slides as pressure on Trump increases, euro at two-week high

NEW YORK, Aug 22 — The US dollar continued its slide this morning as political pressure on President Donald Trump increased, and the euro hit a two-week high as investors rushed to cover short positions. Trump suffered twin setbacks yesterday with…

Fed minutes may drop clue about how long Powell will hike rates

NEW YORK, Aug 22 — The last published record of internal deliberations at the Federal Reserve ended on a cliffhanger. An update this week may illuminate US central bankers’ thinking on what is becoming an increasingly controversial topic: the…

Trump, trade, Fed take sheen off S&P’s longest bull run

NEW YORK, Aug 22 — The S&P 500 marked its longest bull-market run with a dip today as President Donald Trump’s political position was threatened by the legal woes of two former advisers and ahead of trade talks and the Federal Reserve’s…

Mexico says deal with US on Nafta issues may be ‘hours’ away

WASHINGTON, Aug 22 — Agreement between Mexico and the United States on outstanding bilateral issues in the renegotiation of the North American Free Trade Agreement could be just a few hours away, Mexican officials said today. “We hope that…

IHH Healthcare likely to exit maiden investment in India: Report

PETALING JAYA: The Economic Times of India reported late on Tuesday that Malaysia's IHH Healthcare Bhd, which recently succeeded in its bid for the much coveted Fortis Healthcare Ltd for 40 billion rupees (RM2.35 billion), is likely to exit its maiden investment in India, Kolkata's Apollo Gleneagles Hospitals.

According to the report which cited people with knowledge of the exit plan, the move is in accordance with a clause in a non-compete agreement between joint venture partners Apollo Hospitals and Parkway Pantai, a subsidiary of IHH, one of the largest healthcare groups in the world by market capitalisation.

The clause states that any partner who takes up a stake in a rival hospital will have to sell its stake to the other.

Parkway Pantai and Apollo Hospitals have equal share in the joint venture set up in 2002, which owns the 425-licensed bed multi-specialty tertiary hospital in Kolkata which focuses on cardiology, general surgery, orthopaedics and transplants. It is the only hospital in eastern India to be Joint Commission International-accredited.

Back in 2015, The Economic Times reported that the Prathap Reddy family, promoters of India's largest hospital chain Apollo Hospitals, and IHH, then its second largest shareholder with a 10.85% stake, had locked horns over IHH's aggressive acquisition strategy in India. IHH purchased Continental Hospitals and Global Hospitals for about 16 billion rupees that year.

In 2017, IHH sold its entire stake in Apollo Hospitals Enterprise.

On Bursa Malaysia on Tuesday, IHH closed up 10 sen at RM5.62, with some 6.5 million shares changing hands.

Air Selangor cuts bulk water supply rate in offers to Gamuda, Taliworks

PETALING JAYA: Gamuda Bhd and Taliworks Corp Bhd have been informed by Air Selangor of a cut in the bulk water supply rate for the third phase and first phase of the Sungai Selangor Water Treatment Plant (SSP) by 2 sen/m3 and 5 sen/m3, respectively.

Both Gamuda and Taliworks are required to revert with acceptance of the respective offers by 5pm, Aug 27.

In a filing with Bursa Malaysia on Tuesday, Gamuda said its 80%-owned Gamuda Water Sdn Bhd had received a letter of offer dated Aug 21, 2018 from Air Selangor setting out the termination of the existing operations and maintenance agreement (OMA) of SSP3 with Splash as well as the settlement of the outstanding Gamuda Water's receivables from Splash.

Gamuda Water and Air Selangor will execute a new SSP3 OMA, which will start on the operational date until Dec 31, 2029.

The bulk water supply rate is set at 44 sen/m3 from the operational date till end-2018; 46 sen/m3 from 2019 to 2022; 47 sen/m3 for 2023; and 53 sen/m3 from 2024 to 2029.

For Taliworks, the bulk water supply rate under the new OMA will be a rate equal to a 5 sen/m3 reduction to the existing rate under the SSP1 OMA from the operational date to end-2029, being the expiry date of the existing SSP1 OMA and a final rate of 52.5 sen/m3 for the seven-year extension from 2030 to 2036.

A letter received by wholly owned subsidiary Sungai Harmoni Sdn Bhd dated Aug 21, 2018 spelt out key terms of settlement between Air Selangor, Splash and Sungai Harmoni relating to Sungai Harmoni's outstanding receivables arising from the existing operations and maintenance of the SSP1 as well as key terms in respect of the new OMA between Air Selangor and Sungai Harmoni.

Under the termination and settlement agreements, Splash will pay to Gamuda Water and Taliworks, as full and final settlement of all amounts owing by Splash to Gamuda Water and Taliworks under the SSP OMA, an amount equal to 90% of the outstanding fee.

Gamuda and Taliworks said their boards of directors are reviewing the terms contained in the offers and will make the appropriate announcement in due course after going through due process internally.

If Trump can strong-arm the Fed, US assets may not be so great

NEW YORK, Aug 22 — Donald Trump may want to watch what he wishes for. If Federal Reserve boss Jerome Powell does what the president wants, American assets could lose their appeal as a global haven. Strategists warn that more than just the central…

Apple’s Cook is poised to reap US$120m of stock after rally

NEW YORK, Aug 22 — Apple Inc’s Tim Cook is set to collect stock worth about US$120 million (RM492.3 million) this week thanks to a run-up in shares of the iPhone maker. On Friday, Cook stands to receive 280,000 shares tied to his continued…