Sunday, August 25th, 2019

 

Mnuchin: Trump could force US firms out of China but ‘has not done that’

WASHINGTON, Aug 25 — US Treasury Secretary Steven Mnuchin today backed up Donald Trump’s assertion that he indeed can force American companies to stop doing business in China, but noted he has yet to do so. Mnuchin — who was speaking on Fox…


US, Japan agree trade deal ‘in principle’

BIARRITZ, Aug 25 — US President Donald Trump and Japan’s Prime Minister Shinzo Abe today announced a deal in principle on a major bilateral trade deal. “It’s a very big transaction,” Trump said after talks with Abe on the sidelines of the…


Central bankers face political shocks, and hope to avoid the worst

JACKSON HOLE, Aug 25 — Global central bank chiefs know their job is to keep the economy out of the ditch. What became clear at the US Federal Reserve’s central banking conference in Jackson Hole, Wyoming, over the past couple of days is that not…


AAX expected to remain in the red in Q3

PETALING JAYA: Analysts have ‘sell’ calls for AirAsia X Bhd (AAX) following its disappointing results in the second quarter (Q2), with Q3 expected to be another loss-making quarter for the carrier.

MaybankIB Research deemed AAX risk-reward as unfavourable and ranked it as the riskiest Asia-Pacific airline.

“The risk of an equity call cannot be ignored due to the limited borrowing capacity in AAX’s balance sheet.

AAX’s net gearing in end-June 2019 was 10.6 times, and this could swell further as it might have to reimburse Malaysia Airports Hold-ings Bhd for the passenger service charge arrears,” it said.

AAX’s Q2’19 core net loss was RM185 million after adjusting for non-cash items and this was well below expectations, as yields and costs moved in a negative direction. The core net loss for 1H’19 was RM215 million compared with a loss of RM8 million for the same period last year.

“We expect AAX to remain loss-making in Q3’19 as it is the seasonally weakest quarter and AAX typically makes all its profit in Q4. The competitive pressures in Thailand and Indonesia have risen and AAX’s associates in these two countries would face greater challenges.

“Our revised FY19 loss forecast swells by 6.5 times from our previous forecast and we now think FY20 will be loss-making as well. Based on this, our target price has been cut to 11 sen. Sell,” said MaybankIB.

Affin Hwang Capital said while it expects AAX’s business prospects to improve in 2H’19 due to seasonal factors, the market condition remains challenging and AAX may miss the research house’s earlier earnings projection.

“We cut our 2019-21 earnings per share forecasts to reflect the soft market conditions, as reflected in AAX’s subdued passenger growth. All in, we expect AAX to report losses in 2019-20; the weak results should put pressure on AAX’s share price. Maintain sell with a lower target price of 14 sen,” it said.

It expects AAX’s business environ-ment to remain challenging in view of the subdued passenger growth and weak ringgit.


AAX expected to remain in the red in Q3

PETALING JAYA: Analysts have ‘sell’ calls for AirAsia X Bhd (AAX) following its disappointing results in the second quarter (Q2), with Q3 expected to be another loss-making quarter for the carrier.

MaybankIB Research deemed AAX risk-reward as unfavourable and ranked it as the riskiest Asia-Pacific airline.

“The risk of an equity call cannot be ignored due to the limited borrowing capacity in AAX’s balance sheet.

AAX’s net gearing in end-June 2019 was 10.6 times, and this could swell further as it might have to reimburse Malaysia Airports Hold-ings Bhd for the passenger service charge arrears,” it said.

AAX’s Q2’19 core net loss was RM185 million after adjusting for non-cash items and this was well below expectations, as yields and costs moved in a negative direction. The core net loss for 1H’19 was RM215 million compared with a loss of RM8 million for the same period last year.

“We expect AAX to remain loss-making in Q3’19 as it is the seasonally weakest quarter and AAX typically makes all its profit in Q4. The competitive pressures in Thailand and Indonesia have risen and AAX’s associates in these two countries would face greater challenges.

“Our revised FY19 loss forecast swells by 6.5 times from our previous forecast and we now think FY20 will be loss-making as well. Based on this, our target price has been cut to 11 sen. Sell,” said MaybankIB.

Affin Hwang Capital said while it expects AAX’s business prospects to improve in 2H’19 due to seasonal factors, the market condition remains challenging and AAX may miss the research house’s earlier earnings projection.

“We cut our 2019-21 earnings per share forecasts to reflect the soft market conditions, as reflected in AAX’s subdued passenger growth. All in, we expect AAX to report losses in 2019-20; the weak results should put pressure on AAX’s share price. Maintain sell with a lower target price of 14 sen,” it said.

It expects AAX’s business environ-ment to remain challenging in view of the subdued passenger growth and weak ringgit.


Trump’s only regret on China is ‘not raising tariffs higher’

BIARRITZ, Aug 25 — US President Donald Trump today rowed back from a suggestion made just hours earlier that he regrets his trade war with China, saying instead he’s only sorry not to have raised tariffs even higher. Trump’s spokeswoman…


Trump denies China trade war causing friction at G7

BIARRITZ, Aug 25 — President Donald Trump today denied that his trade war with China is causing friction at the G7 summit, but indicated he will hold off from a threatened further escalation for now. “I think they respect the trade war. It has…


US ‘very close’ to ‘major’ trade deal with Japan, says Trump

BIARRITZ, Aug 25 — President Donald Trump today said the United States and Japan are “very close” to a major bilateral trade deal. Speaking shortly before holding talks with Prime Minister Shinzo Abe on the sidelines of the G7 summit in…


Report: Johnson to tell EU's Tusk UK won't pay £39b under no-deal Brexit

BIARRITZ, Aug 25 — British Prime Minister Boris Johnson is expected to tell European Council head Donald Tusk that the UK will only pay £9 billion (RM46.3 billion) instead of the £39 billion liability agreed by former Prime Minister Theresa May…


Trump says ‘very big’ US-UK trade deal to happen ‘quickly’

BIARRITZ, Aug 25 — US President Donald Trump today said a trade deal with Britain could be reached “quickly”. Speaking alongside Prime Minister Boris Johnson on the sidelines of the G7 summit in Biarritz, France, Trump touted a “very big…