Wednesday, June 19th, 2019

 

US trade chief says meeting with Chinese negotiator to precede G20 summit

WASHINGTON, June 19 — The top US trade negotiator said today it is in the interests of China and the United States to have a successful trade pact and he expects to meet with a senior Chinese official ahead of next week’s G20 summit in Japan…


Deutsche Bank seeks to shed risky assets as part of overhaul, say sources

FRANKFURT, June 19 — Deutsche Bank is aiming to cut up to a quarter of its riskiest assets in the next few years, people familiar with the matter said, shedding more light on how the German lender is trying to overhaul its business and revive…


US stocks open flat ahead of key Fed statement

NEW YORK, June 19 — Wall Street stocks opened flat today ahead of a Federal Reserve announcement expected to confirm the central bank’s more dovish tilt on monetary policy. The Fed, while expected to leave interest rates unchanged, could tweak…


Asian stock markets extend global rally as Trump fuels trade deal hope

HONG KONG: Asian markets rallied today after US President Donald Trump hailed “very good” phone talks with China’s President Xi Jinping and said they would meet at the Group of 20 (G20) summit next week, renewing hopes for a deal to end a bruising trade war.

Trump’s comments provided a much-needed boost to investors after a month of volatility sparked by his shock decision to hit China with fresh tariffs, ending months of apparently positive negotiations.

Adding to the upbeat mood were comments from the European Central Bank head Mario Draghi hinting at a cut in interest rates to support the stuttering eurozone economy.

The Federal Reserve was also due to end its latest policy meeting later today, with dealers hoping for some idea about its plans for rates.

After a healthy lead from Wall Street, the vast majority of Asia’s markets posted gains of at least 1% – with Hong Kong leading the way by jumping more than 2%.

Tokyo ended 1.7% higher, Shanghai added 1%, Singapore put on 1.4% and Sydney 1.2%.

Taipei added 2%, while Wellington, Seoul, Manila, Jakarta and Bangkok were above the 1% level. Mumbai was also in positive territory.

In Europe, stock markets steadied this morning after the previous session’s strong rally, as investors await a key monetary policy update from the Federal Reserve.

At around 1030 GMT, London’s FTSE 100 was down 0.3%, Frankfurt’s DAX 30 was up 0.1% and Paris’ CAC 40 was 0.1% higher. The Euro Stoxx 50 was flat.

“European markets are taking a breather in the wake of yesterday’s huge gains across the globe,” noted Joshua Mahony, senior market analyst at IG trading group.

The Asian rally was sparked after Trump tweeted: “Had a very good telephone conversation with Xi. We will be having an extended meeting next week at the G20 in Japan. Our respective teams will begin talks prior to our meeting.”

Later he told reporters “the meeting might very well go well”, adding that China wanted to make a deal.

“China and the US will both gain by cooperating and lose by fighting,” Xi told Trump, according to a readout by Chinese state broadcaster CCTV.

Trump’s tweet followed weeks of speculation about whether the heads of the two most powerful economies would actually meet on the sidelines of the G20 in Osaka. Trump had warned that if Xi did not turn up he would increase tariffs on virtually all China’s exports to the US.

However, analysts pointed out that it was in both of their interests to bring an end to the long-running dispute.

“There is strong incentive for both presidents to re-engage,” said Tai Hui, chief market strategist for Asia-Pacific at JPMorgan Asset Management.

“Trump is kick-starting his (re-election) campaign and he will need strong economic performance over the next 18 months. President Xi will also need trade tensions to cool down to support China’s domestic economy, while pursuing financial market liberalisation.”

The optimism underpinned a rally in riskier assets, with high-yielding currencies benefiting. South Korea’s won jumped 0.8%, the South African rand added 0.9% and Indonesia’s rupiah gained 0.4%.

The Chinese yuan, which has struggled in recent weeks, climbed 0.4%.

The euro, however, extended Tuesday’s losses after Draghi’s remarks that weak growth and soft inflation could lead to further rate cuts to historic lows.

He also batted back an accusation from Trump of currency manipulation, saying the ECB’s mandate “is price stability”.


Asian stock markets extend global rally as Trump fuels trade deal hope

HONG KONG: Asian markets rallied today after US President Donald Trump hailed “very good” phone talks with China’s President Xi Jinping and said they would meet at the Group of 20 (G20) summit next week, renewing hopes for a deal to end a bruising trade war.

Trump’s comments provided a much-needed boost to investors after a month of volatility sparked by his shock decision to hit China with fresh tariffs, ending months of apparently positive negotiations.

Adding to the upbeat mood were comments from the European Central Bank head Mario Draghi hinting at a cut in interest rates to support the stuttering eurozone economy.

The Federal Reserve was also due to end its latest policy meeting later today, with dealers hoping for some idea about its plans for rates.

After a healthy lead from Wall Street, the vast majority of Asia’s markets posted gains of at least 1% – with Hong Kong leading the way by jumping more than 2%.

Tokyo ended 1.7% higher, Shanghai added 1%, Singapore put on 1.4% and Sydney 1.2%.

Taipei added 2%, while Wellington, Seoul, Manila, Jakarta and Bangkok were above the 1% level. Mumbai was also in positive territory.

In Europe, stock markets steadied this morning after the previous session’s strong rally, as investors await a key monetary policy update from the Federal Reserve.

At around 1030 GMT, London’s FTSE 100 was down 0.3%, Frankfurt’s DAX 30 was up 0.1% and Paris’ CAC 40 was 0.1% higher. The Euro Stoxx 50 was flat.

“European markets are taking a breather in the wake of yesterday’s huge gains across the globe,” noted Joshua Mahony, senior market analyst at IG trading group.

The Asian rally was sparked after Trump tweeted: “Had a very good telephone conversation with Xi. We will be having an extended meeting next week at the G20 in Japan. Our respective teams will begin talks prior to our meeting.”

Later he told reporters “the meeting might very well go well”, adding that China wanted to make a deal.

“China and the US will both gain by cooperating and lose by fighting,” Xi told Trump, according to a readout by Chinese state broadcaster CCTV.

Trump’s tweet followed weeks of speculation about whether the heads of the two most powerful economies would actually meet on the sidelines of the G20 in Osaka. Trump had warned that if Xi did not turn up he would increase tariffs on virtually all China’s exports to the US.

However, analysts pointed out that it was in both of their interests to bring an end to the long-running dispute.

“There is strong incentive for both presidents to re-engage,” said Tai Hui, chief market strategist for Asia-Pacific at JPMorgan Asset Management.

“Trump is kick-starting his (re-election) campaign and he will need strong economic performance over the next 18 months. President Xi will also need trade tensions to cool down to support China’s domestic economy, while pursuing financial market liberalisation.”

The optimism underpinned a rally in riskier assets, with high-yielding currencies benefiting. South Korea’s won jumped 0.8%, the South African rand added 0.9% and Indonesia’s rupiah gained 0.4%.

The Chinese yuan, which has struggled in recent weeks, climbed 0.4%.

The euro, however, extended Tuesday’s losses after Draghi’s remarks that weak growth and soft inflation could lead to further rate cuts to historic lows.

He also batted back an accusation from Trump of currency manipulation, saying the ECB’s mandate “is price stability”.


Takeover offer for Yee Lee extended again

PETALING JAYA: Yee Lee Corp Bhd joint offerors have extended again the deadline for acceptance of its takeover offer from 5pm tomorrow, to 5pm on Wednesday, July 3.

In a filing with Bursa Malaysia, the company said that the extension of the closing time and date for the acceptance of the offer is the final extension, with no further extensions beyond the final closing date of July 3.

As at June 18, the joint offerors collectively hold 159.10 million Yee Lee shares, representing 83.04% of the issued shares in Yee Lee.

“The joint offerors have received acceptances (subject to verification) in respect of an additional 374,136 Yee Lee shares (representing 0.2% of the issued shares in Yee Lee),” the company said.

In April, Yee Lee announced an unconditional voluntary takeover offer by its major shareholders to acquire the remaining shares they do not already own in the company for RM2.33 a share.

Yee Lee received the voluntary takeover offer from Yee Lee Organization Bhd, executive chairman Datuk Lim A Heng @ Lim Kok Cheong, Datin Chua Shok Tim @ Chua Siok Hoon, Lee Ee Young and Langit Makmur Sdn Bhd.

Earlier this month, the joint offerors extended the closing date for the takeover offer from June 7 to June 21, giving shareholders an additional two weeks to consider the offer.

In its independent advice circular published in May, independent adviser Affin Hwang Capital had said that the takeover offer is not fair but reasonable, and recommended that holders accept the offer.


JAG, Empire agree to terminate MoU on bauxite mining

PETALING JAYA: JAG Bhd and Empire Mining Sdn Bhd have mutually agreed to terminate a memorandum of under-standing (MoU) to jointly explore bauxite mining opportunities in Langkawi, Kedah.

In a filing with Bursa Malaysia, JAG said the termination of the MoU is effective immediately and will not have any material financial impact on JAG and its subsidiaries.

The two parties had signed the MoU in March this year, with a possible joint venture between JAG or its nominated subsidiary and Empire Mining to extract, process and produce bauxite in Langkawi.

JAG’s businesses include manufacturing, trading, services, proprietary solutions, and software maintenance, investment and property development.

JAG’s share price fell 11.11% to close at 4 sen today with 659,500 shares traded.


SKP buys Seri Kembangan properties for RM2.9m

PETALING JAYA: SKP Resources Bhd’s wholly owned subsidiary Bangi Plastics Sdn Bhd is acquiring four units at the 3elements project in Seri Kembangan from a related party for RM2.9 million.

In a filing with Bursa Malaysia, the group said Bangi Plastics had entered into a sale and purchase agreement (SPA) with Gan Poh Geok, the vendor, for the acquisition of the properties.

Poh Geok is the daughter of Datuk Gan Kim Huat, the executive chairman cum managing director and major shareholder of SKP. She is also the sister of Gan Poh San, the executive director and an indirect major shareholder of SKP.

The four units, which measure a total of 4,664 sq ft, will be used as a sales office for Bangi Plastics. It will also facilitate the group’s business operations and will serve as a regional sales office.

The group said that the properties will have long term potential in its investment value due to the strategic location. 3elements is a mixed development spanning 6.3 acres of prime land in Puchong South comprising a mall, retail lots and residential units developed by Titijaya Land Bhd.

The acquisition, which will be satisfied via internally generated funds, is estimated to be completed within three months from the unconditional date.


Wong Engineering’s Q2 profit plunges 77%

PETALING JAYA: Wong Engineering Corp Bhd’s net profit slumped 76.8% to RM388,000 for the second quarter ended April 30 against RM1.68 million in the previous corresponding period, due to lower sales from manufacturing, higher cost absorption due to lower factory utilisation and variation in product mix.

Revenue for the quarter under review declined 3.3% to RM13.09 million from RM13.55 million.

It has proposed to declare an interim dividend of 0.5 sen per share for the quarter under review.

Wong Engineering’s six-month net profit also tumbled 86.1% to RM846,000 from RM6.1 million, while revenue slipped 0.9% to RM25.86 million from RM26.09 million.

Amid the heightened uncertainty in global trade and slower demand from electrical and electronics sector, it said he overall business environment continue to be challenging and the group’s performance is anticipated to remain subdued for the remaining quarters of financial year ending 2019 particularly for manufacturing segment.

“Nevertheless, the management has intensified its effort for growth through customer base and market expansion and striving for higher productivity and operation efficiency to sustain our core business.”

Overall, barring any unforeseen circumstances, Wong Engineering is cautiously optimistic about its prospects and will remain vigilant for new opportunities and business ventures to further enhance its return to shareholders.


Wong Engineering’s Q2 profit plunges 77%

PETALING JAYA: Wong Engineering Corp Bhd’s net profit slumped 76.8% to RM388,000 for the second quarter ended April 30 against RM1.68 million in the previous corresponding period, due to lower sales from manufacturing, higher cost absorption due to lower factory utilisation and variation in product mix.

Revenue for the quarter under review declined 3.3% to RM13.09 million from RM13.55 million.

It has proposed to declare an interim dividend of 0.5 sen per share for the quarter under review.

Wong Engineering’s six-month net profit also tumbled 86.1% to RM846,000 from RM6.1 million, while revenue slipped 0.9% to RM25.86 million from RM26.09 million.

Amid the heightened uncertainty in global trade and slower demand from electrical and electronics sector, it said he overall business environment continue to be challenging and the group’s performance is anticipated to remain subdued for the remaining quarters of financial year ending 2019 particularly for manufacturing segment.

“Nevertheless, the management has intensified its effort for growth through customer base and market expansion and striving for higher productivity and operation efficiency to sustain our core business.”

Overall, barring any unforeseen circumstances, Wong Engineering is cautiously optimistic about its prospects and will remain vigilant for new opportunities and business ventures to further enhance its return to shareholders.