Euro's big four agree growth boost, split on bonds

ROME: German Chancellor Angela Merkel resisted pressure on Friday for common euro zone bonds or a more flexible use of Europe's rescue funds but agreed with leaders of France, Italy and Spain on a 130 billion euros ($156 billion) package to revive growth.

Wall St Week Ahead: Europe, economic outlook take center stage

NEW YORK: Wall Street navigated some potent obstacles this week, like Greece's elections and the Federal Reserve's slashing its U.S. economic growth forecasts, but the drama is not over.

Google CEO says "nothing seriously wrong" - source

SAN FRANCISCO: Google Inc CEO Larry Page, who plans to skip several high-profile events in coming weeks after losing his voice, told employees there was "nothing seriously wrong with me," according to a source who had seen an internal staff memo.

Moody's downgrades $64 billion of U.S. muni debt

NEW YORK/MIAMI: Moody's Investors Service on Friday cut ratings on $64 billion of municipal bonds, including debt owed by 1,675 local and state governments, because the obligations rely on 15 global banks the Wall Street credit agency sees as less steady.

Wall Street claws back after sharp decline, banks lead

NEW YORK: Stocks ended higher on Friday, led by gains in bank shares, as the S&P 500 index bounced back from its second-worst decline of the year.

Grand-Flo to leverage on HeiTech Padu for more Govt jobs

PETALING JAYA: Tracking solutions provider Grand-Flo Solution Bhd expects to supply about RM50mil worth of products and services to HeiTech Padu Bhd for one year.

MYBiomass plans Johor plant

PETALING JAYA: MYBiomass Sdn Bhd will consider investing US$200mil to US$300mil (RM638.5mil to RM957.9mil) to set up a bio-refinery plant in Johor using oil palm biomass as feedstock, said Malaysian Industry-Government Group for High Technology (MIGHT) president and chief executive officer Yusoff Sulaiman.

Alam Maritim sees higher revenue after combining operations

SERI KEMBANGAN: Alam Maritim Resources Bhd expects a higher revenue this year after the integration of its offshore support vessel (OSV) and offshore installation and construction (OIC) operations.

Export of medical devices projected to hit RM12.5bil

GEORGE TOWN: Malaysia’s export of medical devices is expected to hit RM12.5bil this year compared with RM11.7bil in 2011.

Louis Dreyfus confirms tie-up with FGVH

PETALING JAYA: Louis Dreyfus Commodities Asia (LDCA) has reached a final agreement with Felda Global Ventures Holdings Bhd (FGVH) on the terms of their strategic partnership.

Analysts laud Perdana move

PETALING JAYA: Both Perdana Petroleum Bhd and its associate Petra Energy Bhd will benefit with the former moving closer to disposing of its entire stake in the latter.

Envoy: Integration can work for Asean

PETALING JAYA: The European integration, even with its faults, has brought about peace and prosperity, and there is no reason why it would not work for Asean, said ambassador and head of European Union (EU) delegation to Malaysia Vincent Piket.

RAM: Merger proposal won’t affect Kenanga IB’s ratings

PETALING JAYA: Kenanga Investment Bank Bhd’s (Kenanga IB) proposed RM875.1mil merger with ECM Libra Financial Group Bhd’s investment bank will have no immediate impact on the former’s ratings, according to RAM Ratings.

Asia in ‘better state of readiness’

PETALING JAYA: Asian countries are in a “better state of readiness” to deal with shocks in the global economy as a result of the wide-ranging reforms it pursued in the aftermath of the Asian financial crisis, said Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz.

Consumer price index 1.7% higher in May

PETALING JAYA: Malaysia’s inflation rate climbed 1.7% in May over the same month last year on higher prices for food and non-alcoholic beverages and non-food items.

SCIB expects to secure another RM5mil contracts

KUCHING: Sarawak Consolidated Industries Bhd (SCIB), a major manufacturer and supplier of precast concret products, expects to secure another RM5mil worth of contracts this year from investors in energy-intensive industries in Sarawak Corridor of Renewable Energy (SCORE).

Unprecedented participation of housewives at Malacca SOBA workshop

MALACCA: The inaugural Star Business Awards (SOBA) Learning Series workshop held here turned to be an intriguing event when several housewives registered as participants.

Technology driving PKT Logistics forward

COMPANIES need to embrace and be in touch with the advancements in technology or risk losing out to the competition, says PKT Logistics Group Sdn Bhd group chief executive and managing director Datuk Michael Tio.

Dialog signs MoU with Halliburton

PETALING JAYA: Dialog Group Bhd’s wholly owned subsidiary Dialog D&P Sdn Bhd has entered into a memorandum of understanding with Halliburton Energy Services (M) Sdn Bhd (HESSB).

Good response to KLIA2 tender

KUALA LUMPUR: Commercial operators have shown keen interest in Malaysia Airports Holdings Bhd’s (MAHB) call for tender for all four phases of commercial space at KL International Airport 2 (KLIA2).

International reserves at RM417.3bil

KUALA LUMPUR: Bank Negara’s international reserves amounted to RM417.3bil (equivalent to US$136bil) as at June 15.

Fitch affirms rating on Labuan Re

PETALING JAYA: Fitch Ratings has affirmed Malaysia-based Labuan Reinsurance (L) Ltd’s (Labuan Re) insurer financial strength rating at A- with negative outlook.

RAM reaffirms ratings on Star

PETALING JAYA: RAM Ratings has reaffirmed the respective short and long-term ratings of P1 and AA1 for Star Publications (M) Bhd’s RM750mil commercial papers programme 2011/2018 and RM750mil medium-term notes programme 2011/2026.

Your 10 questions with Datuk Zabidah Ismail

Amanah Ikhtiar Malaysia managing director, Datuk Zabidah Ismail, answers your 10 questions.

Up close and personal with Cambridge professor Margaret Stanley

If there is one thing a person may learn from life, it is that it is left to divine intervention or chance. This is so because almost always, plans that are made do not usually happen as planned.

Skill in investing in Asian businesses

ASIAN companies have become more open to the idea of private equity (PE) post-financial crisis and the South-East Asian region specifically affords numerous opportunities to do such deals.

Private equity deals picking up steam

Value of deals in Malaysia comprised 50% of South-East Asia’s total last year

Opportunities in adversity

DARAWATI Hussain, the attractive and unassuming chief executive officer of CIMB Private Equity is on the lookout for more acquisitions.

Deals are getting more complicated

NAVIS Capital partner Tan Chow Yin feels that Malaysia is an interesting market for private equity, and an increasingly developed one.

Identifying possible targets

BEING in a “fortunate” cash position is spurring Goldis Bhd to actively look at Malaysian companies with “cutting-edge” businesses, says its head of corporate investments Colin Ng.

Companies seek opportunities in private equity industry

MALAYSIAN companies are increasingly seeking out opportunities in the private equity (PE) industry as capital markets here become more sophisticated.

Ex-McKinsey CEO’s case highlights swapping of secrets in corporate world

Errol Oh analyses the Gupta trial and its significance to the meaning of friendship as defined by corporate big guns.

NAP should address issue of high car prices

P Gunasegaram feels that the NAP should consider liberalising the car industry as the public has been unduly burdened with the failings of Proton for years now.

State, market and money seeking order out of disorder

Andrew Sheng, through the eyes of writer Fukuyama, looks into the need for states, markets and money to be in sync particularly in good times.

Legacy or cashing out?

Tan Thiam Hock argues that the more successful your business becomes nowadays, the more likely you will sell out.

Are you really in control of your credit card?

CREDIT cards have become an essential part of our lives. They give us a sense of security and convenience. We use them as often as possible and some people even use them instead of cash. Truth is, we can’t leave home without them.

Pre-requisite condition for licensing of a housing developer

Chang Kim Loong discusses why the amendment to the requisite deposit to be paid by developers is a welcome move.

Tajudin, MAS withdraw suits

KUALA LUMPUR: Malaysia Airlines and its two subsidiaries and former Malaysia Airlines (MAS) executive chairman Tan Sri Tajudin Ramli have withdrawn their suits against each other for breach of fiduciary duty.

Exim Bank in tie-up with UK’s ECGD

PETALING JAYA: Export-Import Bank of Malaysia Bhd (Exim Bank) has signed a memorandum of understanding (MoU) with the United Kingdom’s Export Credit Guarantee Department (ECGD).

HLB completes issuance of RM1.5bil sub notes

KUALA LUMPUR: Hong Leong Bank Bhd (HLB) has completed the issuance of Tier 2 subordinated notes (sub notes) of RM1.5bil on June 22.

Heavy trading in Luster stock

PETALING JAYA: Luster Industries Bhd’s stock and its warrant, Luster WA, were the most actively traded yesterday.

Uptrend constructive

Bursa Malaysia started out the week on a steadier note, with the FBM Kuala Lumpur Composite Index (FBM KLCI) rising 4.12 points to 1,583.35 in initial trade, extending the previous session’s gains amid follow-through nibbling.

Eye on Stock

Perdana Petroleum Bhd.

MAS must win back customers it lost to other carriers due to price competition

Yesterday must have been a busy day for those at Malaysia Airlines (MAS). They were once again briefed on yet another business plan to chart its journey ahead.

On top of the world

Favelle Favco makes cranes that sit atop the world’s tallest structures

Standalone brokers’ days are numbered?

With the large mergers and acquisitions (M&As) occurring in the brokerage industry of late, it appears that the days of standalone brokerages could be numbered.

AIMS to maintain double-digit growth this year

AIMS Data Centre Sdn Bhd, a wholly owned subsidiary of Time Dotcom Bhd is bullish on growth moving forward and expects to maintain double-digit revenue growth this year.

Bright future for LED industry

THE move by the Malaysian Government to phase out the use of incandescent lights or “round bulbs” is seen as a positive move by many, not only for its environmental significance but also the business benefits for manufacturers of light emitting diodes (LEDs).

Keeping the standards high

TO ensure Malaysian LED companies are globally competitive, the Department of Standards Malaysia, an agency under the Ministry of Science, Technology and Innovation, has adopted accelerated timeframes to hasten the adoption process of these LED standards in response to the impending policy changes. The Malaysian Standard (MS) will help to ensure the quality of local products, both for export and domestic use.

Competition for skills will continue to intensify in the years to come

GLOBAL competition for skills and talent will only get fiercer in the years ahead as both advanced and developing countries are expected to face a serious shortage of skilled workers to drive their economies.

Hobbies that can pay

TURNING one’s hobby or passion into an income-generating activity is like killing two birds with one stone: one can earn some extra money, while doing something that he or she enjoys most.

Treasury Pulse

Glomac sees better times with more projects and bigger landbank in the Klang Valley

BY next week, right after its analysts and fund managers’ briefing on Tuesday, June 26, Glomac Bhd will be making preparations to move to its new headquarters in Damansara opposite Tropicana City Mall in Petaling Jaya. The briefing, held in conjunction with the release of its financial results for its fourth quarter, and the move to its new premises, are in a way, the beginning of a new chapter for the medium-sized developer with market capitalisation of around RM550mil.

Penangites go for leasehold projects

UDA Land (North) Sdn Bhd plans to launch a RM650mil condominium project on a leasehold site in Tanjung Tokong in the first quarter of next year in view of the strong demand for high-rise residence in prime locations and the changed perception towards leasehold properties among Penangites.

Adex flat as advertisers turn cautious on global economic conditions

PETALING JAYA: Year-to-date (YTD) May 2012 advertising expenditure (adex) in the country was flattish, rising marginally by 0.3% year-on-year to RM4.10bil, according to data from information and measurement firm Nielsen.

De Kretser’s second go at building a regional network

MICHAEL de Kretser believes that to achieve success, you’d have to fail a bit.

With the right talent, People ‘n Rich aspires to strenghten its advertising platform

ADVERTISING and branding agency People ‘n Rich will focus on talent to drive its business growth and market share in the medium size agency segment.

Global M&As slump 25%

NEW YORK: Mergers and acquisition (M&A) activity fell 25% worldwide in the first half of 2012 as global economic uncertainty reined in companies’ expansion plans and bankers don’t expect much improvement over the rest of the year.

Economists: New Indonesia market watchdog unnecessary

SINGAPORE: Indonesia’s new financial watchdog is due to open its doors at the start of 2013, but concerns are growing that it may actually undermine the country’s progress in bringing its fast growing financial sector under control.

Moody’s cuts 15 banks’ ratings

CHARLOTTE: Ratings agency Moody’s downgraded 15 of the world’s biggest banks on Thursday, lowering credit ratings by one to three notches to reflect the risk of losses they face from volatile capital markets activities, but banks criticised the move as backward looking.

Slim strengthens hand in Europe, has 21% of KPN

MEXICO CITY: Mexican billionaire Carlos Slim extended his power in Europe on Thursday, taking control of more than a fifth of Dutch telecoms group KPN in the teeth of opposition from the company.

Ghosn not ready to step down yet

TOKYO: Nissan Motor Co CEO Carlos Ghosn said he was not thinking of stepping down anytime soon, but Japan’s No. 2 carmaker had succession plans in place to select the next chief from within its ranks.

US earnings outlook pounded

NEW YORK: Weakening business activity worldwide is hitting US companies where it hurts, with more of them signalling disappointing results than at any time over the past decade.

Euro’s big four to find way out of crisis in Rome

ROME: The leaders of Germany, France, Italy and Spain will try to find common ground in Rome to restore confidence in the eurozone ahead of a full European Union (EU) summit next week, which Italy’s prime minister called a defining moment.

Spain to seek bank aid as borrowing costs soar

LUXEMBOURG: Independent auditors said Spanish banks may need up to 62 billion euros in extra capital, to be filled mostly by a eurozone bailout, after Spain’s medium-term borrowing costs spiralled to a euro-era record.

EU ends sanctions against Hungary

LUXEMBOURG: The European Union (EU) lifted financial sanctions against Hungary after Budapest convinced its European partners it was committed to keeping spending within EU limits.

Singapore May inflation seen retreating

SINGAPORE: Singapore’s consumer prices in May probably rose at a slower pace as lower oil prices offset inflationary pressures caused by rising rents and car prices.

Ikea to invest US$1.9bil in India

NEW DELHI: Swedish furniture giant Ikea plans to invest 1.5 billion euros (US$1.9bil) to open 25 retail stores in India.

Oil rebounds after 18-month low

LONDON: Oil rebounded above US$90 a barrel yesterday after hitting an 18-month low but remained on course for a weekly loss of nearly 8% as reports suggesting slowing economic growth around the globe signalled weaker demand.

Indonesia sugar hits record prices

JAKARTA: Domestic white sugar prices in Indonesia, South-East Asia’s biggest sugar consumer, hit an all-time high this week, boosted by a tightening of supplies in the past two months.

Economic logic in prose

The writer tries to make the concept of economy appeal to the masses by explaining the logic of the subject through analogies.

Snapshots

Compiled by THEAN LEE CHENG.