Saturday, December 22nd, 2018

 

German media: VW says diesel scandal cleanup to cost €2b in 2019

FRANKFURT, Dec 22 — Volkswagen’s cleanup of a diesel cheating scandal will cost it €5.5 billion (RM26.1 billion) in 2018 and around €2 billion in 2019, Chief Financial Officer Frank Witter told German weekly Boersen-Zeitung. Since 2015, the…


Trump has discussed firing US Federal Reserve chairman Powell, reports Bloomberg

TOKYO, Dec 22 — US President Donald Trump has discussed firing Federal Reserve Chairman Jerome Powell, Bloomberg reported today, citing sources. Trump's frustration with the US central bank chief intensified after this week's interest rate…


Online clothing retailers hunt for better fit to cut costly returns

BERLIN, Dec 22 — Models testing fashion brands like Adidas, Benetton and Gap are finding that almost a third of the shoes and clothes they try on are bigger or smaller than the size on the label indicates, explaining why many clothes bought online…


Ringgit to see little movement in week ahead

KUALA LUMPUR, Dec 22 — The ringgit is expected to see little movement next week as traders are likely to remain quiet ahead of the Christmas holiday, a dealer said. “We expect activity across markets to drop next week as investors remain on the…


Window dressing to send Bursa higher next week

KUALA LUMPUR, Dec 22 — Shares on Bursa Malaysia will likely be on an uptrend next week due to window dressing activities ahead of the year-end, says an analyst. The analyst expects the FTSE Bursa Malaysia KLCI (FBM KLCI) to rise towards the…


Ringgit likely to see little movement next week

KUALA LUMPUR: The ringgit is expected to see little movement next week as traders are likely to remain quiet ahead of the Christmas holiday, a dealer said.

“We expect activity across markets to drop next week as investors remain on the fence ahead of the upcoming Christmas holiday break,” FXTM Research Analyst Lukman Otunuga said.

He said the ringgit would also be mostly influenced by the US dollar’s performance for the rest of the year.

“The ringgit is seen appreciating if the US dollar continues to soften on growth fears and prospects of fewer rate hikes next year,” he said.

He said technical traders would continue to closely observe how the US dollar performs against the ringgit above the 4.1700 level.

“A breakdown below this point may encourage a strengthening ringgit towards 4.1620 against the US dollar in the near term,” he said.

The market will be closed on Tuesday for Christmas.

For the week just ended, the ringgit closed mostly higher against the US dollar with the market sentiment moved by oil prices and US Federal Open Market Committee’s meeting outcome on interest rates and future rate hikes.

On a Friday-to-Friday basis, the local note strengthened to 4.1790/1830 from 4.1830/1880 against the greenback.

It depreciated against the Singapore dollar to 3.0490/0531 from 3.0393/0434 and weakened against the British pound to 5.2919/2986 from 5.2635/2710.

Vis-a-vis the Japanese yen, the ringgit went down to 3.7588/7634 from 3.6842/6895 and fell against the euro to 4.7758/7808 from 4.7239/7299. — Bernama


Bursa Malaysia to be higher next week on window dressing

KUALA LUMPUR: Shares on Bursa Malaysia will likely be on an uptrend next week due to window dressing activities ahead of the year-end, says an analyst.

The analyst expects the FTSE Bursa Malaysia KLCI (FBM KLCI) to rise towards the 1,700-point level next week, from the current level of 1,670.28.

“However, there is still a risk of a last-minute pullback by traders given the overall bearish regional sentiment right now,” he told Bernama.

Meanwhile, Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid has a more conservative view of the FBM KLCI, predicting that it would linger around the current support level of 1,653.

He said local funds are expected to begin their window dressing activities next week but trading would still be done cautiously.

“The expected increase in US rates next year will likely have an impact on their growth and this would reverberate to the global economy as monetary tightening will take some time to have an impact on the real economy,” he added.

For the week just ended, the FBM KLCI performed poorly driven by the sharp decline in US stocks, as market players turned cautious due to signs of a slowing global economy and the Federal Reserve’s decision to increase interest rates by 25 basis points.

On a Friday-to-Friday basis, the benchmark FBM KLCI settled 8.32 points better at 1,670.28.

The FBM Emas Index gave up 48 points to 11,371.11, the FBMT100 Index erased 28.51 points to 11,289.02, the FBM 70 dropped 367.17 points to 12,826.39, the FBM Emas Shariah Index fell 29.61 points to 11,318.67, and the FBM Ace edged down 131.50 points to 4,258.61.

Sector-wise, the Finance Index lost 214.22 points to 17,143.54, the Industrial Products and Services Index slipped 1.33 points to 165.47, while the Plantation Index increased 162.60 points to 6,810.26.

Comparing Friday-to-Friday, the weekly turnover increased to 9.57 billion units worth RM8.45 billion from 9.21 billion units worth RM7.85 billion last Friday.

Main Market volume rose to 6.62 billion units worth RM7.93 billion from 6.47 billion units worth RM7.30 billion.

Warrants turnover eased to 1.70 billion units worth RM384.90 million from 1.74 billion units worth RM400.27 million.

The ACE Market volume improved to 1.01 billion shares worth RM137.63 million from 997.58 million shares worth RM153.66 million previously.

The gold futures contract on Bursa Malaysia Derivatives is expected to trade higher next week on the weakness of the US dollar, a dealer said.

Phillip Futures Sdn Bhd Dealer Stephen Lou Yoke Lim said the US dollar is expected to be jittery next week given the uncertainty in the US market.

“Investors may abandon risky assets and flock back to the safe-haven assets,” he told Bernama.

The market will be closed on Tuesday for Christmas.

For the week just ended, the US Federal Reserve shocked the market, taking a less dovish stance by raising interest rates by 25 basis points and trimming its median forecast from three to two hikes next year.

The US dollar strengthened after the announcement but later retreated, thus lending strength to most developing world currencies.

On a Friday-to-Friday basis, spot month December 2018, January 2019, February 2019 and March 2019 all added 44 ticks each to RM169.20, RM169.20, RM169.30 and RM169.40 a gramme respectively.

Weekly turnover increased to two lots worth RM33,500 from one lot worth RM16,700 in the previous week, while open interest remained at 26 contracts. — Bernama


Ford recalls 874,000 pickups in US, Canada on fire risk

DETROIT, Dec 22 — Ford is recalling 874,000 of its best-selling F-series pickup trucks due to fire risk from the engine block heater system, the company announced yesterday. The problem occurs when there is corrosion in a connector in the engine…


US Fed could rethink rate hikes as Trump trade wars drag on economy

WASHINGTON, Dec 22 — The US central bank sent a strong signal yesterday that it would be willing to reconsider expected interest rate hikes amid new data showing President Donald Trump's multi-front trade wars are dragging on the economy and…


White House unveils goals for Japan trade talks

WASHINGTON, Dec 22 — The White House yesterday laid out objectives for trade talks with Japan, setting the clock for them to begin as early as January 20, as the administration seeks to slash the United States' US$69 billion (RM288.5 billion)…