Tuesday, June 4th, 2019

 

US stocks bounce after May rout

NEW YORK, June 4 — Wall Street stocks bounced early today, winning back some of the losses from May after a weak stretch due to trade conflicts.  Analysts have described the market as primed to push higher after the Dow lost around seven…


Trump says US likely to go ahead with tariffs on Mexico over immigration

LONDON, June 4 — President Donald Trump today said he would probably order new tariffs on all Mexican goods imported to the United States next week despite a diplomatic push to avoid the levies, citing high flows of migrants entering the…


US Fed chief says ‘closely monitoring’ trade impact on economy

CHICAGO, June 4 — The US central bank is “closely monitoring” trade disputes and the implications for the economy, Federal Reserve Chairman Jerome Powell said today. A day after another Fed official said an interest rate cut would be…


Asia, US boost global plastic output

PARIS, June 4 — Despite widespread alarm on the environmental cost, Asia and the United States lifted world production of plastic last year while Europe saw a dip, the PlasticsEurope federation said today. Voicing concern over US imports, the…


Ringgit ends higher against US dollar ahead of Aidilfitri break

KUALA LUMPUR: The ringgit continued its climb against the US dollar today, ahead of a two-day break for Hari Raya Aidilfitri holidays, thanks to Malaysia’s surprisingly strong trade data, amid falling US Treasury yields.

At 6 pm, the local note ended at 4.1730/1760 against the greenback compared with 4.1800/1840 at Monday’s close.

SPI Asset Management managing partner and head of trading, Stephen Innes, said the ringgit’s upward momentum was extended following the surprising trade data for April 2019, wrong footing some analysts and traders expecting a contraction.

The Ministry of International Trade and Industry announced on Monday that April’s exports rose 1.1% year-on-year (y-o-y) to RM85.2 billion, ending two successive months of y-o-y decline.

Meanwhile, Kenanga Investment Bank Bhd said in a note today that April’s exports growth beat Bloomberg’s consensus of -2.1%, and was a tad above house estimate of 0.8%.

On the impact from the US bond yields, Innes said the probability of multiple US Federal Reserve’s rate cuts beginning next month, coupled with the latest Mexico tariffs threat by US President Donald Trump had sent the benchmark 10-year US Treasury’s yield falling to its lowest overnight since September 2017.

“This has made high-yielding assets like Malaysia’s bonds more attractive, and hence, helped lift the ringgit’s performance,“ he told Bernama.

At the closing bell, the ringgit traded mostly lower against a basket of major currencies, except against the Singapore dollar.

It depreciated against the yen to 3.8614/8652 from 3.8575/8623 on Monday, weakened versus the pound to 5.2851/2910 from 5.2839/2907, and was lower at 4.6930/6980 from 4.6703/6752 against the euro.

Vis-a-vis the Singapore dollar, the local unit was slightly higher at 3.0487/0520 from 3.0489/0522 yesterday. — Bernama


Google faces privacy complaints in European countries

BRUSSELS, June 4 — Google’s privacy woes are set to increase after campaigners today filed complaints to data protection regulators in France, Germany and seven other EU countries over the way it deals with data in online advertising. The…


FCA-Renault bid clears French hurdles as board meets, say sources

PARIS, June 4 — Renault directors were preparing to review Fiat Chrysler's (FCA) US$35 billion (RM146 billion) merger offer today, after the Italian-American carmaker resolved differences with the French government overnight, three sources…


Ringgit ends higher ahead of Raya break on robust trade data

KUALA LUMPUR, June 4 — The ringgit continued its climb against the US dollar today, ahead of a two-day break for Hari Raya Aidilfitri holidays, thanks to Malaysia’s surprisingly strong trade data, amid falling US Treasury yields. At…


Can-One accepts offer to sell F&B Nutrition

PETALING JAYA: Can-One Bhd has accepted the offer to sell its subsidiary F&B Nutrition Sdn Bhd for up to RM1 billion to Asia Dairy Creations Sdn Bhd, a special purpose vehicle managed by Southern Capital Group Private Limited.

In a filing with Bursa Malaysia, Can-One said that its board of directors has deliberated on the offer and has accepted the offer based on the terms and subject to the conditions set out in the term sheet.

The offer is subject to a definitive agreement and other ancillary agreements being entered into between Can-One and Asia Dairy Creations within 30 days from the date of the acceptance of the offer.

Earlier on Monday, Can-One received the offer from Asia Dairy Creations for the purchase of the entire issued share capital of F&B Nutrition at an indicative consideration of between RM800 million to RM1 billion.

F&B Nutrition is involved in manufacturing of dairy and non-dairy products and is an original equipment manufacturer of sweetened creamer and evaporated creamer. It is 20%-owned by Can-One while the remaining 80% is held by Amber Alliance Sdn Bhd, a wholly owned subsidiary of Can-One.

Pursuant to the term sheet, the consideration will be an amount equal to the normalised and recurring earnings before interests, tax, depreciation and amortisation of F&B Nutrition for the financial year ending Dec 31, 2019 multiplied by 10.5, and less the net debt of F&B Nutrition which will be defined in the definitive agreements.

RHB Investment Bank Bhd has been appointed as the principal adviser to the company.


We’ll have a very substantial trade deal, Trump tells British PM

LONDON, June 4 — Donald Trump told British Prime Minister Theresa May today that the United States would do a very substantial and fair deal with the United Kingdom after Brexit. “I think we’ll have a very very substantial trade deal, it’ll…