Tuesday, September 3rd, 2019

 

Wall Street traders pump up Argentine peso as currency controls bite

BUENOS AIRES, Sept 3 — Argentina’s peso surged this morning, pumped up by Wall Street traders back after a long holiday weekend cheering President Mauricio Macri’s capital controls aimed at protecting the beleaguered currency. The peso was…


US manufacturing contracts for first time in three years, says ISM

WASHINGTON, Sept 3 — Bogged down in the US-China trade war, the US manufacturing sector stumbled and fell into contraction last month for the first time in three years, an industry survey showed today. Anemic demand for US goods, with persistent…


UK high-speed rail link is over budget, years behind schedule, government says

LONDON, Sept 3 — A proposed high-speed rail project to improve links from London to central and northern England will cost about £20 billion more than originally expected and is up to five years behind schedule, the government said today. The…


UK plc mulls policies of possible Corbyn government

LONDON, Sept 3 — Britain faces the prospect of a general election in the near future, with investors concerned not just about a no-deal Brexit — but also a potential Labour government led by Jeremy Corbyn. Labour Party leader Corbyn has vowed to…


US-China deal to be ‘much tougher’ in second Trump term, warns Trump

WASHINGTON, Sept 3 — US President Donald Trump today warned Beijing not to drag its feet in trade negotiations in hopes of a better deal if he is voted out of office next year. Negotiations are due to resume this month after a sharp deterioration…


US stocks drop as latest tariffs take effect

NEW YORK, Sept 3 — Wall Street stocks fell early today in the first session since new tariffs took effect in the escalating US-China trade war. Both countries imposed new levies on September 1, with the US assessing 15 per cent tariffs on an…


EU locked in ‘long battle’ against Chinese fraud

BRUSSELS, Sept 3 — Europe’s “long battle” against fake goods from China has become even more difficult with the upsurge in online shopping, where fraudulent and often dangerous products were being sold, an EU official said today. “The…


Boeing MAX 737 likely biggest ever insurance payout, says SP

PARIS, Sept 3 — The insurance payout on the beleaguered Boeing 737 MAX aircraft after two crashes claimed 346 lives will likely be the biggest ever, S&P Global Ratings said today. Marc-Philippe Juilliard, a director with S&P, told a press…


Malaysia approves RM2.3b investments to make sanitary-related products

KUALA LUMPUR, Sept 3 — The Malaysian Investment Development Authority (MIDA) has approved 21 projects to manufacture sanitary-related products, involving investments of RM2.3 billion, from 1980 to June this year. Of the total, RM2.2 billion…


Malaysian manufacturing to post modest growth in second half of 2019

PETALING JAYA: The manufacturing sector is expected to see modest growth in the second half of 2019 (2H19) amid economic uncertainty after survey data highlighted challenging manufacturing conditions in August.

The IHS Markit Malaysia Manufacturing Purchasing Managers’ Index (PMI) recorded 47.4 in August, a fractional decline from July’s 47.6, signalling tough demand conditions and rising cost pressures. Nevertheless, the outlook improved to the most optimistic for nearly six years, encouraging firms to expand their workforces for the first time in three months.

TA Securities chief economist Shazma Juliana Abu Bakar opined that the PMI will not surpass the 50-point threshold this year, given the uncertain demand from the external side.

“The survey indicated slight optimism among respondents but if you look at the uncertain economy, I don’t think it will remain robust in 2H19. GDP is going to be around 4.3-4.6% in 2H19 so we expect a bumpy road ahead. As for manufacturing, it (growth) is going to be modest in 2H19,” she told SunBiz.

“As long as the trade war between China and US is not solved, we still continue to see rising downside risks especially from the external side. But it will be buffered from the domestic side.”

She added that the government will come up with measures to overcome further slowdown in the Malaysian economy during Budget 2020.

“We don’t rule out the possibility of another rate cut in 2H19. We’re worried about the economic conditions, but we don’t think it will be a recession. We don’t think it will come to that level (recession) so soon,” said Shazma.

Bank Negara Malaysia is expected to hold its Monetary Policy Committee meeting next Thursday.