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Showing posts from February, 2014

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Russia Holds Key Rate at 21% Amid Surging Inflation

The Bank of Russia unexpectedly maintained its key interest rate at a record-high  21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to  8.9%  in November, well above the central bank’s  4% target , with inflation expectations reaching  13.9%  in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s  200-basis point hike  as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...

History of MAS loss

The other day, I couldn't contain myself after reading of another huge loss by Malaysia Airlines (MAS) and thus blogged about the problem with MAS , which is mainly down to mismanagement and the lack of serious and fair competition in the country. Well, my frustration was shared by AirAsia boss, Tony Fernandes, who tweeted,  "I wonder if it's fair that Malaysia Airlines can lose so much money and protect its market share. Can only do that with taxpayers money." I couldn't helped but to agree...while external factors such as the increase of crude oil and other factors could contribute to this, MAS could at least show some improvement, which is hardly reflected on the financial statement and their balance sheet.  A bit of history of MAS could tell us a clearer picture of the direction of the Malaysia airline company.  Prior to the Asian Financial Crisis in 1997  MAS had recorded losses as much as RM260 million. This was after their record...

The problem with MAS

The problem with Malaysia Airlines (MAS) is not a one day story. This is not the first time we heard about the amount of losses made by the airline company.  In 1972, the Malaysia-Singapore Airlines (MSA) became MAS and SIA. In the last 10 years from 2002- 2011 SIA reported a total pre-tax profit of Singapore $13,992 million, averaging S$ 1.4 billion per year. This created a big question mark over the reliability and management skill of those who are appointed to lead MAS.  MAS has just reported a loss of RM 830 million for 3 quarters ending September 2013 which is larger than the loss of Rm 483 million in the same corresponding period last year.   As usual, there are the incorrigibly optimistic cheerleaders for the airline who are unable to see the writing on the wall.   These ‘experts’ are still touting that the company is in recovery mode and will soon be returning to profitability. If you look at the Business Times, you will find that one of the Head...

EPF Announces 6.35% Dividend For 2013

EPF announces 6.35% dividend for financial year 2013 and it was the highest in the last decade. Below is some news snippet from The Star. KUALA LUMPUR: The Employees Provident Fund (EPF) announced a 6.35% dividend for 2013, higher than the 6.15% declared for 2012. EPF chairman Tan Sri Samsudin Osman said in a statement on Sunday that this would involve the highest sum in dividend payout to subscribers, totalling RM31.20bil. It is 13.66% higher than the total dividend payout in 2012, which was RM27.45bil, he added. Samsudin said the dividend rate was declared on the back of a record gross investment income of RM35bil, a 12.81% rise from the RM31.02bil gross investment income recorded in 2012. "The 2013 dividend payout was derived after deducting the net impairment allowance on financial assets, investment expenses, operating expenditures, statutory charges as well as dividend on withdrawals," he said. Samsudin said equities emerged as the largest contributor to the...

2014 CLSA Feng Shui Index

Well, we are still in Chinese New Year mode and entered the Year of Horse three days ago and it seems like it is a good idea to post the CLSA Feng Shui Index, which I posted almost every year. Based on the chart, we are about to have another high this year - mid of the year although pulling back towards the end of 2014. Let's hear from the expert:- "What a breed, this speedy Steed! If we've right-read the riddle-wrapper that retails as the 2014 Celestial Form Guide, the soon-to-be-bourse-boss Hoss that grabs the zodiac reins this year is un toro in toto : pure bull from grass-cutters to fly-swatter. And the result for the Hong Kong market should be pretty much as indicated above in our CLSA Feng Shui Index - an annual forecast of the Hang Seng Index based on little more than a whisper of wind (feng) and a babble of water (shui). For reasons that range from the "Casablanca connection" to a recurring Yogi...