The Star Online: Business

AEG boss says Michael Jackson insurance covers overdose

LOS ANGELES: Concert promoter AEG Live's chief executive says insurance will help cover any losses on the now-canceled Michael Jackson concert series if the pop star died accidentally, including of a drug overdose, but not if he died of natural causes.

Billionaire Warren Buffett makes gifts to charity worth US$1.53b

SEATTLE: Billionaire Warren Buffett has donated US$1.25 billion in Berkshire Hathaway Inc. stock to the Bill & Melinda Gates Foundation.

Asian markets down on US, Europe job worries (updated)

KUALA LUMPUR: Asian stock markets fell on Friday, dragged down by steep declines on Wall Street overnight and falling crude oil price after latest reports showed grim job market numbers in US and Europe. KLCI remained above critical 1,070 points level

Euro zone unemployment hits 10-year high

LONDON: Unemployment in the 16 countries that use the euro spiked to a ten-year high in May, reinforcing concerns any recovery will take time now that more than 15 million people are out of work.

European Central Bank keeps interest rate at 1%

LUXEMBOURG: The European Central Bank left its benchmark interest rate unchanged at 1 percent Thursday, preferring to wait and see if its "spectacular" infusion of credit into the banking system will loosen lending to consumers and businesses in the euro zone's struggling economy.

US unemployment reaches 26-year high wages fall

WASHINGTON: US employers cut a larger-than-expected 467,000 jobs in June and the unemployment rate climbed to a 26-year high of 9.5 percent.

Oil falls further Friday after unemployment rises in US, Europe(update)

SINGAPORE: Oil prices hovered above $66 a barrel Friday in Asia in light holiday trading volume a day after grim unemployment numbers from the U.S. and Europe sent crude prices tumbling.

US stocks sent reeling by high unemployment rate (Update)

NEW YORK: A dour report on job losses in June sent stocks sharply lower Thursday.

Foreign direct investment expected to fall by 50% in 2009

KUALA LUMPUR: Foreign direct investments (FDIs) are expected to fall by half this year from RM46.1bil last year, says Malaysian Industrial Development Authority deputy director-general Wahab Hamid.

Manufacturing takes a beating

PETALING JAYA: The manufacturing sector is expected to continue to be adversely affected by the global economic downturn, according to the International Trade and Industry Ministry Report 2008.

Malaysia says Asian nations badly hit by economic crisis

PETALING JAYA: Contrary to expectations that Asia would be relatively protected from the financial crisis because of its lower exposure to American securitised assets, in reality, Asian economies have been severely impacted.

Malaysia needs to think big in local content creation

THIS week, the new Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim stressed the need to further develop local content.

RM63b record investments for manufacturing sector

PETALING JAYA: Approved investments in the manufacturing sector reached record levels in 2008, reaffirming Malaysia’s status as an attractive investment destination and a competitive manufacturing and export base.

Stanton poised to list in Singapore

PETALING JAYA: Penang-based Stanton Technologies Ltd is headed for a listing on the Singapore Exchange by end-August after abandoning earlier plans to list on the Dubai Financial Exchange (DIFC).

Kuala Lumpur Kepong unit to scale down US ops

KUALA LUMPUR: Kuala Lumpur Kepong Bhd’s (KLK) unit Crabtree & Evelyn Ltd (C&E USA), which has filed a voluntary petition for relief under Chapter 11 of the US Bankruptcy Code, intends to close some non-performing stores in the United States.

CIMB Standard confident of raising US$238mil

KUALA LUMPUR: CIMB Standard, the appointed manager and advisor of the new Islamic Infrastructure Fund (IIF), is confident of raising the remaining US$238mil in the next 12 months to meet the targeted fund size of US$500mil.

MNCs scale down perks for expatriates

GEORGE TOWN: Expatriates working in the country for multinational corporations (MNCs) are now getting less benefits due to cutbacks as a result of the economic recession.

Lofsa extends Azizan’s term as D-G

KUALA LUMPUR: Labuan Offshore Financial Services Authority (Lofsa) has extended Datuk Azizan Abd Rahman’s tenure as its director-general for another two years with effect from this month.

UDA in RM31mil refurbishment of Puduraya

KUALA LUMPUR: UDA Holdings Bhd is targeting to finish refurbishing its Puduraya Bus Terminal by end November next year.

Stocks

Mandatory general offer for Goh Ban Huat triggered

KUALA LUMPUR: Goh Ban Huat Bhd’s (GBH) single biggest shareholder Tan Sri Robert Tan Hua Choon yesterday triggered a mandatory general offer (MGO) for GBH after his shareholding breached the 33% level.

Bursa suspends Luster stocks trading

PETALING JAYA: Trading in the securities of Luster Industries Bhd, an amended PN17 company, will be suspended with effect from July 8.

New method to keep up with global standards

FTSE Bursa Malaysia KLCI, based on a new methodology for the country’s benchmark index, will address the issues of tradability, investability and transparency once it is launched on July 6. This is the last of a two-part article by Bursa Malaysia on index investing and its benefits for investors.

Changes in IPO ruling market driven Previous method of gaining from IPO is no longer sustainable

KUALA LUMPUR: A vastly different market for initial public offerings (IPOs) today from the past might have been a factor in prompting changes to bumiputra equity requirement for new listings.

Auto

Analysts: Proton deal will have little impact on EON

PETALING JAYA: Analysts expect a negligible impact on Edaran Otomobil Nasional Bhd (EON), which now needs the prior consent of Proton Holdings Bhd to sell brands other than the latter’s.

Mercedes-Benz hopes to match or beat 2007 passenger car sales

KUALA LUMPUR: Mercedes-Benz Malaysia Sdn Bhd has set its passenger car sales in 2007 – 3,606 units – as the minimum benchmark for this year’s sales.

Property

Putrajaya Perdana unit wins RM287mil job

PETALING JAYA: Putrajaya Perdana Bhd unit Putra Perdana Construction Sdn Bhd has been awarded a RM287.23mil contract for the main building works of Naza TTDI Sdn Bhd’s 50-storey headquarters.

Dorsett plans 10 more hotels in Malaysia

SUBANG: Hospitality player Dorsett International Sdn Bhd aims to add 10 hotels to its existing chain of five hotels and resorts in Malaysia in five years, says president Eddie Tang.

Banking

Ex-RHB Cap chief tipped to helm EON Bank

PETALING JAYA: Former RHB Capital Bhd group managing director Michael Barrett is tipped to take the helm at EON Bank group. Sources indicated that Barrett had been identified to take over the post of CEO which has been left vacant since the retirement of Albert Lau at end-March.

Commodities

Stable palm oil production cost

PETALING JAYA: The average cost of production (COP) among local oil palm companies in the first half of 2009 looked stable at RM1,100 to RM1,200 per tonne for efficient planters while new and smaller planters surpassed RM1,900 a tonne.

Foreign News

India needs sweeping reforms

NEW DELHI: India could see growth of around 7% this year and more in coming years if it makes sweeping reforms including the removal of fuel subsidies and accelerates infrastructure development, a government report said yesterday.

Strong demand for Rio’s rights offer

SYDNEY: Rio Tinto Ltd sold virtually all of the UK part of its US$15.2bil rights offer, the world’s fifth biggest, easing its huge debt burden and putting the world’s top iron-ore miner back in growth mode.

Iraq to move up second bidding

BAGHDAD: Iraq plans to bring forward a second bidding round for major energy contracts, a spokesman said yesterday, and it may also give foreign firms another chance to bid for oilfields that were not awarded during an energy auction this week.

Feds seize Madoff penthouse, wife leaves

NEW YORK: Federal marshals seized disgraced financier Bernard Madoff's $7 million Manhattan penthouse on Thursday and forced his wife to move out and leave her possessions behind, including a fur coat she had asked to take with her, an official told The Associated Press.

Judge will consider Stanford request for money

HOUSTON: A federal judge in Dallas said he will consider a modest request for money to pay lawyers and accountants to look through R. Allen Stanford's personal assets to find money untainted by an alleged $7 billion fraud.

Judge dismisses Constellation appeal in US$4.5b EdF case

BALTIMORE: Constellation Energy Group Inc. lost a round in its battle with Maryland regulators over its proposed deal to sell half its nuclear operations to France's EdF when a judge ruled Thursday it could not appeal the decision to review the agreement while the review was under way.