Saturday, September 7th, 2019

 

Greek PM set to outline tax cuts, structural reforms

ATHENS, Sept 7 — Greece’s prime minister is expected today to detail tax cuts for companies strained by years of austerity, while also promising pro-business reforms aimed at convincing lenders to ease the nation’s fiscal target from 2021….


Turkey calls on US to lift barriers to boost trade

ISTANBUL, Sept 7 — Turkey asked the United States to lift trade barriers between the two countries during talks today aimed at sharply increasing bilateral commerce, Turkey’s trade minister said. Washington and Ankara have set an ambitious goal…


Another recent inversion could provide support for stocks

NEW YORK, Sept 7 — A decline in interest rates on long-term US government bonds below the average stock dividend yield has received less attention than an inverted Treasury yield curve, but it could be a reason stocks find support after a bruising…


France urges Germany to step up eurozone investments

STRASBOURG, Sept 7 — France’s finance minister reiterated his call yesterday for Germany and other eurozone states running budget surpluses to step up investments in the bloc to counter economic sluggishness “that’s bad for everyone.”…


Bullish outlook to boost FBM KLCI to 1,620 level next week

KUALA LUMPUR, Sept 7 — The bullish economic outlook on the global front, coupled with expectations of higher demand for crude palm oil (CPO) moving forward, are expected to boost Bursa Malaysia to the 1,620 level next week. Phillip Capital…


Ringgit expected to rise moderately next week

KUALA LUMPUR: The ringgit is expected to rise moderately next week, driven by strong domestic fundamentals coupled with higher oil prices.

Axi Trader Asia-Pacific market strategist Stephen Innes said next week’s Bank Negara Malaysia (BNM) Monetary Policy Committee (MPC) meeting would be highly anticipated for the central bank’s policy decision.

“Several banks are suggesting the MPC will deliver a rate cut despite the second quarter gross domestic product (GDP) surprise, whereas others are thinking of a very dovish hold,“ he told Bernama.

Bank Negara Malaysia is scheduled to hold its fifth Monetary Policy Committee meeting next Thursday (Sept 12).

On May 7, BNM reduced the overnight policy rate (OPR) by 25 basis points (bps) to three per cent, its first rate decrease since July 2016.

Innes opined that the rate cut could be viewed positively for the ringgit as the Malaysian economy has been resilient and this could improve equity sentiment and investments.

“Sentiment has improved dramatically in the course of such a short time, we may see a test of 4.1650 level if the Renminbi continues to strengthen via the People’s Bank of China (PBoC) guidance and no Twitter surprises from US President Donald Trump,“ he said.

The PBoC said on its website it will cut the reserve requirement ratio (RRR) by 50 bps for all banks, with an additional cut of 100 bps for some qualified banks, effective Sept 16.

With this latest move, China’s central bank has cut the RRR seven times since early 2018.

The market will be closed on Monday in conjunction with the birthday of the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

The market will resume trading on Tuesday.

For the week just ended, the local note extended its strong performance against the US dollar on strong investor demand for the local currency.

The ringgit ended the week higher at 4.1780/1830 against the US dollar from 4.2030/2080 last Friday.

The local currency traded mostly higher against most other major currencies, except the pound.

The ringgit rose against the Singapore dollar to 3.0221/0261 from 3.0281/0319 last Friday, strengthened versus the yen to 3.9050/9101 from 3.9487/9545, and appreciated against the euro to 4.6079/6147 from 4.6393/6465 previously.

However, the ringgit depreciated vis-a-vis the British pound to 5.1385/1463 from 5.1230/1308. – Bernama


US will ‘act as appropriate’ to sustain economy, says Fed chief Powell

ZURICH, Sept 7 — The US central bank is ready to step in to preserve the American economy’s expansion amid mounting risks, Federal Reserve Chairman Jerome Powell said yesterday. While the Fed is not expecting a recession, trade frictions — as…


Vexed Canada takes China to WTO over canola ban

OTTAWA, Sept 7 — Canada has requested a meeting with Beijing at the World Trade Organisation (WTO) to try to bring an end to China’s ban on its canola, Trade Minister Jim Carr announced yesterday. In a news release, Carr said Canada raised…


Wall Street ekes out gains after mixed US jobs data

NEW YORK, Sept 7 — Wall Street’s major indexes edged higher yesterday as investors digested mixed signals from the US jobs report and bet on a Federal Reserve interest rate cut this month while China’s stimulus plan helped ease some concerns…


Trump bullish on China tariffs, but aide warns of long haul

WASHINGTON, Sept 7 — US President Donald Trump yesterday said the costs of his protracted trade war are falling squarely on China, but a top adviser warned that the struggle between the economic superpowers could drag on for years. Top-level…