November 2024

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Showing posts from November, 2024

Market Daily Report: Bursa Malaysia Ends Higher On Positive Sentiment, CI Up 0.83 Pct

KUALA LUMPUR, Nov 6 (Bernama) -- Bursa Malaysia closed higher today, buoyed by supportive local economic policies, positive sentiment from strong technology stocks earnings, and a favourable United States (US) market outlook, an analyst said. Add to that, Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 3.0 per cent is poised to encourage domestic spending and investment. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 13.47 points, or 0.83 per cent, to close at its intraday high of 1,634.17, compared to Tuesday’s close of 1,620.70. The benchmark index opened 3.71 points higher at 1,624.41 and subsequently hit a low of 1,623.52 in early trade before trending upwards toward the closing session. Market breadth was positive, with advancers trumping decliners 849 to 352, while 428 counters were unchanged, 765 untraded, and nine suspended. Turnover expanded to 3.39 billion units

Market Daily Report: Bursa Malaysia Reverses Early Losses To End Higher Ahead Of MPC Outcome

KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia recouped earlier losses to close higher today as late buying lifted the benchmark index to its intraday high on market expectations that Bank Negara’s Monetary Policy Committee (MPC) will maintain the Overnight Policy Rate (OPR) at its meeting tomorrow. Key regional indices, particularly in China and Hong Kong, recorded significant gains as China’s October Purchasing Managers’ Index (PMI) data revealed stronger-than-anticipated growth in the services sector. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.27 points, or 0.26 per cent, to 1,620.70 from Monday’s close of 1,616.43. The benchmark index opened 1.77 points firmer at 1,618.20 and subsequently hit a low of 1,613.91 in the early session before gaining its upward momentum in the late trading session. Market breadth was positive, with advancers trouncing decliners 512 to 476, while 496 counters were unchanged, 895 untraded, and ei

US States Heighten Security Amid Concerns of Election-Related Unrest

Amid high political tensions, US states are bolstering security for the presidential election between Donald Trump and Kamala Harris, with measures including fences, drones, and National Guard deployments to prevent potential violence. Key Security Measures: Nevada : A security fence now encircles Las Vegas' vote tabulation center, with 60 National Guard members on standby. Arizona : Maricopa County has added a fence around its tabulation center, with police drones and snipers on alert. Schools and churches are opting out of serving as polling locations due to safety concerns. Michigan : In Detroit, metal detectors and police patrols, including rooftop surveillance, are stationed at the ballot-counting site. Additional States : Oregon and Washington have activated the National Guard. In Washington, DC, storefronts have been boarded up as a precaution. In response to fears of post-election violence, community groups are also taking proactive steps. In Arizona, a bipartisan committee

Robinhood, Kraken, and Others Launch Global Stablecoin Network

A group of fintech and cryptocurrency companies, including Robinhood, Kraken, and Galaxy Digital, has launched the Global Dollar Network , introducing a new US dollar-pegged stablecoin named USDG. Issued by Paxos from Singapore, USDG aims to broaden stablecoin usage worldwide and offer economic benefits to its partners. Key Points: Global Dollar Network : Formed to promote stablecoin adoption, this network’s goal is to make stablecoins widely accessible and beneficial. Participants, including Anchorage Digital, Bullish, and Nuvei, will help govern USDG through a committee structure. Competitive Market : USDG enters a market dominated by Tether and USD Coin, which together hold nearly 90% of the stablecoin market cap. Its backers hope to boost USDG by incentivizing global stablecoin use. Stablecoin Benefits : Stablecoins like USDG provide a steady value, typically backed by traditional currencies such as the USD or euro, making them a reliable bridge between crypto and fiat currencies.

CapitaLand Secures S$261M from Mitsui OSK for Expansion in Southeast Asia and India

CapitaLand Investment (CLI) has secured a capital commitment of S$261 million from Mitsui OSK Lines, a new Japanese partner, for its Southeast Asia and India private funds. This includes S$130 million for the CapitaLand SEA Logistics Fund (CSLF), CLI's inaugural logistics fund in Southeast Asia, bringing CSLF's total equity to S$400 million. Additionally, Mitsui OSK Lines has committed S$131 million to CLI's India business parks development fund. These investments aim to enhance CLI's logistics and business park portfolios in the respective regions.

Thailand to Resume Gas Field Talks with Cambodia Despite Domestic Opposition

Thailand plans to move forward with negotiations with Cambodia to jointly explore a contested offshore area believed to hold approximately $300 billion in petroleum reserves. Prime Minister Paetongtarn Shinawatra confirmed that talks will proceed under a 2001 memorandum of understanding (MOU), despite opposition from nationalist groups and the Palang Pracharath Party. Key Points: MOU Agreement : The 2001 MOU allows Thailand and Cambodia to negotiate over a 26,000-square-kilometer block in the Gulf of Thailand for potential joint resource development. Sovereignty Concerns : Some Thai groups fear that these negotiations may jeopardize Thailand's claim over the island of Ko Kut, which Cambodia included in its continental shelf claim in 1972. However, Paetongtarn assured that Ko Kut remains unaffected and will remain part of Thailand. Joint Development Focus : The negotiations will aim to address the overlapping claims while enabling joint exploration of an area with an estimated 10 tr

China's Services Sector Grows as Stimulus Takes Effect

China's services sector expanded at its fastest rate since July, as the Caixin China services purchasing managers' index (PMI) rose to 52 in October from 50.3 in September. This private survey, which focuses on smaller private firms, outperformed expectations with a median forecast of 50.5. Key Highlights: Improved Consumer Demand : The rise in PMI suggests a potential rebound in consumer demand following Beijing's recent stimulus measures aimed at boosting economic growth. Sector Confidence : Businesses show confidence in short-term macroeconomic conditions, according to Wang Zhe, senior economist at Caixin Insight Group. Broader Economic Stability : Signs of recovery are visible across various sectors, including manufacturing and housing, with particular strength in domestic demand. Market Response : Following the release, the CSI 300 index rebounded, rising by as much as 1.2%. Since late September, Chinese policymakers have introduced significant economic support measure

Global Stocks Steady as U.S. Election Outcome Looms

Global financial markets are holding steady as investors await the outcome of the tight U.S. presidential election between Republican Donald Trump and Democrat Kamala Harris. With polls too close to call, markets are prepared for potential volatility depending on who wins. Here are the key points and likely market impacts: Stock and Bond Markets : MSCI's Asia-Pacific shares index is stable, while Japan’s Nikkei gained 1.3% on Tuesday. U.S. S&P 500 futures are up slightly, reflecting cautious optimism. Bond yields and the dollar are expected to respond depending on the election result, with a Trump win likely boosting the dollar and a Harris win potentially weakening it. Currency Movements : The dollar is currently at 152.35 against the yen and $1.0875 per euro. Traders expect a Trump victory to strengthen the dollar due to his protectionist policies and potential inflationary pressure, while a Harris victory may see a slight dollar decline, especially against currencies like

New Zealand Central Bank Signals Economic Struggles Amid Rising Unemployment

The Reserve Bank of New Zealand (RBNZ) released a pessimistic economic outlook on Tuesday, highlighting challenges such as rising unemployment, weakened domestic activity, and delayed business investments due to financial pressures. In its semi-annual Financial Stability Report, the RBNZ pointed to reduced demand due to subdued global growth and high interest rates. Businesses are reporting lower profitability and subdued demand, compounded by cost pressures that are impacting trade. Key takeaways from the report include: Rising Unemployment : Increasing unemployment rates are creating acute financial difficulties for some households, according to the central bank. Economic Contraction : The RBNZ expects that New Zealand's economy shrank in the third quarter, as previous cash rate hikes were implemented to curb demand and reduce inflation. Interest Rate Cuts : Since August, the central bank has cut the official cash rate by 75 basis points, with the goal of supporting demand recove

China Reviews Debt Swap Proposal Amid Legislative Meeting

China’s National People’s Congress Standing Committee (NPCSC) has started discussions on a proposal to shift some off-balance-sheet debt of local governments onto their official accounts. This move could raise local government debt limits, marking the first such mid-year adjustment since 2015. The proposed debt swap aims to alleviate financial burdens for local governments struggling with revenue declines and mounting financial obligations. Economists predict that the debt swap could involve between six trillion and ten trillion yuan (RM3.69 trillion to RM6.14 trillion), though details remain undisclosed. Key Points: Debt Swap Program : The plan would allow local governments to bring hidden debt into official accounts, freeing up funds for expenses like salaries and infrastructure. This debt is often tied to Local Government Financing Vehicles (LGFVs) created for infrastructure and urban development. Market Speculation : Economists anticipate that this debt swap could proceed over se

US Equity Funds See Largest Weekly Outflow in Five Weeks

Investors withdrew a net US$5.83 billion (RM25.46 billion) from US equity funds in the week leading up to Oct 30, marking the most significant outflow since late September. This retreat was likely fueled by market caution ahead of the US presidential election and the Federal Reserve's policy announcement scheduled for Wednesday. Key Highlights: Growth and Value Fund Selloffs : US growth funds experienced a US$4.06 billion net outflow, the largest since early October, while value funds saw US$2.19 billion in outflows. Sector-specific Flows : Outflows : Industrial (US$779 million), gold and precious metals (US$392 million), and healthcare sectors (US$278 million). Inflows : Consumer discretionary sector attracted a net US$478 million. Bond Fund Inflows : US bond funds recorded inflows for the 22nd consecutive week, with US$7.37 billion invested. Short-to-intermediate investment-grade funds gained US$3.18 billion. Money Market Fund Activity : US money market funds saw net sales of US$

StanChart Partners with Wise for Faster FX Transfers in Asia, Middle East

Standard Chartered Plc (StanChart) has partnered with Wise Plc to leverage Wise’s platform for multi-currency money transfers across Asia and the Middle East. This integration will allow users to move funds in 21 currencies over the next few months, according to Wise Platform’s managing director, Steve Naudé. Key Points: Enhanced Cross-Border Transfers : Wise’s infrastructure will enable StanChart to provide faster and lower-cost international payments. Current Collaborations : This partnership expands on StanChart’s existing relationship with Wise, particularly through Mox, StanChart’s digital bank based in Hong Kong. Market Impact : Wise is also partnered with other banks like Brazil’s Nubank and HSBC’s Saudi Awwal Bank, with most cross-border payments completing instantly thanks to Wise’s extensive network. Regional Focus : Asia-Pacific, especially Singapore, remains a growth target for Wise, which has 500 employees in its Singapore office. Wise reported handling £35.2 billion (US$4

Instagram to Use AI for Age Verification in Push to Protect Teens

In response to growing scrutiny over its impact on teen mental health, Meta Platforms Inc. is introducing artificial intelligence to detect underage users on Instagram who lie about their age. By early next year, Meta’s AI-driven "adult classifier" will assess user data—such as follower lists and birthday messages—to determine if a user is likely under 18, regardless of their listed age. Key Points: AI-Powered Age Detection : The adult classifier will automatically place suspected underage users into restricted teen accounts with privacy settings that limit message access and content exposure. Enhanced Age Verification : Teens attempting to alter their age or create new accounts will need to provide proof, such as a driver’s license or video-selfie verification via third-party service Yoti. Privacy and Parental Controls : Users aged 16 and 17 can adjust restrictions, but younger teens require parental consent to disable protective settings. Industry Challenges : Meta's mo

OpenAI Explores For-Profit Shift Amid Talks with Regulators

OpenAI, the creator of ChatGPT, is advancing its plans to transition from a non-profit to a for-profit model by engaging in discussions with regulators, including California and Delaware attorneys general. This shift, if approved, could attract more investors but raises questions about preserving its original mission of AI for social good. Key Points: Non-Profit to For-Profit Conversion : OpenAI’s proposed transition includes becoming a public benefit corporation, allowing for-profit operations while maintaining its social mission. The non-profit would retain a stake in the new structure. Regulatory Discussions : OpenAI is preparing to submit restructuring plans for regulatory review. Approval hinges on valuing its valuable intellectual property (e.g., ChatGPT) and ensuring assets are appropriately allocated to charitable purposes. Financial Implications : Recent funding could convert to debt if OpenAI doesn’t transition within two years, per the New York Times. This conversion could

Apple Eyes $10 Million Investment in Indonesia to Lift iPhone 16 Ban

Apple Inc. has proposed investing nearly $10 million to boost local manufacturing in Indonesia, aiming to remove a ban on its latest iPhone 16, according to insiders. The proposal suggests building a factory in Bandung with local suppliers to produce accessories and components for Apple devices. Key Points: Investment Proposal : Apple submitted this investment plan to Indonesia’s Ministry of Industry after the iPhone 16 was blocked due to unmet local content requirements. Local Production Push : Apple’s investment would fulfill Indonesia’s mandate for 40% domestic content in smartphones and tablets, part of President Prabowo Subianto’s broader strategy to increase domestic manufacturing. Industry Concerns : While Indonesia’s government views Apple’s move as a win, the pressure on foreign companies might deter new investments or expansions, especially as some firms look to shift away from reliance on China. Background: Indonesia previously enforced similar policies, barring sales of Goo

Indonesia's GDP Growth Slows to 4.95%, Falling Short of Expectations

Indonesia’s economy grew 4.95% in the third quarter, missing the projected 5% growth, as factory closures and job losses dampened consumption and investment. This slowdown comes as newly inaugurated President Prabowo Subianto aims to ramp up growth to as high as 8% during his term. Key Factors Affecting Growth: Manufacturing Sector Decline : Labour-intensive industries like apparel and footwear are facing a significant drop in overseas demand, leading to factory shutdowns and increased debt distress among major players, including Sritex and Pan Brothers. Rising Unemployment : Job cuts surged 31% year-on-year by October, reaching nearly 60,000 as manufacturing activity contracted for the fourth consecutive month. Middle-Class Setback : About 9.5 million Indonesians have dropped out of the middle class since the pandemic, weakening a crucial driver of domestic consumption, which comprises more than half of Indonesia’s GDP. Government Response To support the economy, the government has: E

China’s Vision of a Shared Future Inspires Malaysia's BRICS Participation

Malaysian Prime Minister Datuk Seri Anwar Ibrahim expressed that China’s principle of a shared future has resonated strongly across Asia, Africa, Latin America, and the Global South, leading Malaysia to pursue participation in BRICS (Brazil, Russia, India, China, and South Africa). Speaking at the 7th China International Import Expo (CIIE), Anwar praised President Xi Jinping’s recent BRICS address in Kazan, which emphasized unity against discord and protectionism. Anwar noted the importance of China's commitment to global peace and economic cooperation. “We must build a community with a shared future to uphold global peace, security, and share expertise and technologies globally,” he stated, referencing Xi’s vision. Recognizing Malaysia as the “Country of Honour” at this year’s CIIE, Anwar spoke after Chinese Premier Li Qiang, followed by other global leaders, commending China’s inclusive trade policies. Highlights from Anwar’s Address: China's Global Role : He acknowledged Ch

Japan’s Yen and Stocks Poised for Volatility as US Election Nears Final Countdown

As the US presidential race between Kamala Harris and Donald Trump tightens, Japan’s yen and stock markets are on high alert, with significant impacts expected based on the outcome. Analysts highlight that a Harris win could bolster the yen due to likely US rate cuts, while a Trump victory may lift Japanese stocks short-term but bring risks of new tariffs that could hurt Japan’s export-reliant economy. If Harris wins, Japan’s yield gap with the US could narrow, strengthening the yen. The dollar-yen might test 150 in such a scenario, according to Nomura Securities. Conversely, a Trump win might see the yen sliding toward 160 , as strategists warn, risking its lowest level against the dollar in nearly four decades. Japanese stocks could enjoy an initial rally under Trump due to his pro-business policies, but new tariffs on trade partners, especially China, could weigh heavily on Japan’s exporters. Trump’s tariff plans, including the potential for 10-20% duties on all imports , threate

South Korea Prepares to Boost US Oil and Gas Imports if Trump Wins Election

South Korea is reportedly considering a plan to increase its US oil and gas imports if Donald Trump wins the election, which could lead to renewed trade pressures on the country. Officials in Seoul have been strategizing for either a Trump or Harris presidency, with greater trade challenges expected under Trump. In anticipation, South Korea's government may encourage local companies to purchase more US energy to address its trade surplus with America. Currently, around 11% of South Korea’s gas and 17% of oil imports come from the US, and companies like SK Innovation and GS Caltex are among the top importers. With Trump pledging to impose tariffs on imports and increase pressure on trade partners, South Korean officials have been meeting with business leaders to discuss contingency plans. Energy imports offer a relatively flexible area for adjustment due to heavy regulation, enabling the government to gradually boost US oil purchases. Additionally, risks in the Middle East may dr

Apple Explores Entry into Smart Glasses with Secret 'Atlas' Study

Apple Inc. is evaluating a possible move into the smart glasses market , following its recent Vision Pro headset launch. In a confidential project, codenamed Atlas , Apple has initiated user studies with its employees to gather feedback on smart glasses currently available. Led by Apple’s Product Systems Quality team , these focus groups aim to gauge user preferences and potential features for Apple’s own smart glasses. The Atlas study aligns with Apple's strategy of understanding market needs before entering a new category. This approach, similar to its prediabetes app study, is designed to help Apple refine potential features that could differentiate its smart glasses from competitors like Meta’s Ray-Ban, which allows video recording, phone calls, and AI assistant features. Apple’s venture could follow a path similar to AirPods : a popular accessory that seamlessly integrates with the iPhone. However, the company faces competition, as Meta and Snap Inc. are also developing augm

Targeted RON95 Subsidy: Household Income Not Sole Factor for Exclusion of Top 15%

Finance Minister II Datuk Seri Amir Hamzah Azizan stated that the top 15% (T15) income group , who will be excluded from the targeted RON95 petrol subsidy, will be determined by more than just the Household Income Survey . This approach will ensure that those in genuine need, including the middle class , are not left out amid rising living costs. Speaking in the Dewan Rakyat , Amir mentioned that the Ministry of Finance is considering a tiered pricing mechanism for RON95 subsidies, similar to the models for diesel and electricity subsidies. The potential use of MyKad and e-wallets as mechanisms for subsidy delivery is also under review. Amir highlighted the success of the targeted diesel subsidy , which saved RM600 million monthly by reducing retail diesel sales by 25% and increasing commercial sales by nearly 50%.

AmInvestment Projects Palm Oil Price Surge in 2025, Upgrades Plantation Sector to ‘Overweight’

AmInvestment Bank forecasts that palm oil prices will rally in 2025 , driven by a tight supply of edible oils and growing biodiesel demand. The research house has upgraded the plantation sector to “overweight” , with expectations that crude palm oil (CPO) prices will average 6.3% higher next year, around RM4,250 per tonne . Factors contributing to this positive outlook include: Supply shortages of competing oils like rapeseed and sunflower. Biodiesel demand growth and export restrictions in Indonesia. A potential dip in Malaysia’s output following a 2024 bumper harvest and labor shortages due to a foreign worker recruitment freeze . Currently, CPO prices have risen 33% year-to-date to nearly RM4,000 per tonne , supporting an 9% gain in the Bursa Malaysia Plantation Index. This contrasts with Malaysia’s official projection for CPO prices, expected to be between RM3,500 and RM4,000 in 2025 amid improved weather and labor availability. Further, EU deforestation regulations set for

Market Daily Report: Bursa Malaysia Ends Higher Lifted By Plantation, Construction Stocks

KUALA LUMPUR, Nov 4 (Bernama) -- Bursa Malaysia closed at its intraday high on Monday, driven by bargain hunting in heavyweights with a focus on plantation and construction stocks. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 12.45 points, or 0.77 per cent, to 1,616.43 from Friday’s close of 1,603.98. The benchmark index opened 3.77 points firmer at 1,607.75, reaching its lowest point of the day, before making an upward climb throughout the day. Market breadth was positive, with advancers trouncing decliners 537 to 485, while 502 counters were unchanged, 877 untraded, and 30 suspended. Turnover slipped to 2.41 billion units valued at RM2.15 billion versus 2.47 billion units valued at RM2.14 billion last week. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said that bargain hunting in plantation stocks continued from last week as crude palm oil futures approached RM5,000 per tonne toda

Gamuda Poised for Record-High Close as New Contracts Drive Investor Optimism

Gamuda Bhd shares surged on Monday, reaching RM8.68 , nearing a record high amid investor enthusiasm over its recent data centre contract. By 10am, shares stood at RM8.59 , pushing the company's market capitalization beyond RM24 billion , with potential for FBM KLCI inclusion by year-end. The RM451 million Cyberjaya data centre contract brings Gamuda’s contract wins since August to RM6.7 billion , boosting its order book to RM31.4 billion . Analysts see potential to surpass its RM35 billion target by December. CIMB Securities set a price target of RM10.20 , joining other analysts with targets above RM10, amid high confidence that Gamuda could secure up to RM15 billion in new projects in the next two quarters. Shares have risen 94% this year , fueled by optimism in the construction sector and major government infrastructure plans. Analysts maintain a strong bullish outlook with 18 'buy' calls and a consensus target price of RM9.48 , indicating a further 10% upside. With

LHDN Warns: No Links Sent via MyTax Portal for Refund Status

The Inland Revenue Board (LHDN) clarified on Monday that it has never sent links to taxpayers through the MyTax portal regarding refund statuses. LHDN emphasized that any notifications from MyTax require proper authorization and warned of strict legal actions against individuals or entities involved in sending false links. LHDN advises the public to be cautious of suspicious links and messages and reminds taxpayers that spreading false information can lead to prosecution under Section 505 of the Penal Code and Section 233 of the Communications and Multimedia Act (CMA) . For accurate information, taxpayers should use official channels : Visit hasil.gov.my or mytax.hasil.gov.my Call the hotline at 03-8911 1000 Visit the nearest LHDN office LHDN reaffirms its commitment to enhancing taxpayer confidence by maintaining service quality and addressing such issues proactively.

New Bumiputera Equity Threshold for ACE Market IPOs Expected

ACE Market IPOs may soon require bumiputera equity allocations in line with Main Market, according to industry sources. Regulators, including the Securities Commission Malaysia and Bursa Malaysia, are reportedly considering a 12.5% bumiputera equity threshold for ACE Market IPOs, matching the Main Market's public spread requirements. This would require ACE Market applicants to allocate 12.5% of their enlarged share base to Ministry of Investment, Trade and Industry (MITI)-approved bumiputera investors at the time of listing. Currently, ACE Market companies meet bumiputera requirements only after achieving Main Market profit thresholds or listing for five years. In addition, regulators are said to be expanding the recognition of bumiputera shareholders to include those holding less than half of the company's enlarged share base, broadening eligibility for fulfilling the bumiputera quota. While the new rule may increase IPO costs , it aligns ACE Market requirements with broa

Special Dividends Likely as Companies Seek to Avoid New 2% Tax on Large Shareholders

As Malaysia prepares to introduce a 2% tax on individual shareholders receiving over RM100,000 in annual dividends , experts suggest that family-controlled companies with substantial retained profits might issue special dividends before the tax takes effect in 2025. The new tax was part of the recent Budget 2025 announcement aimed at high-net-worth shareholders, leading many companies to consider pre-emptive payouts. According to Choo Swee Kee of TA Investment Management, paying dividends before the tax applies would allow companies to avoid an additional layer of taxation on earnings already taxed at the corporate level. Some analysts argue the tax ensures tax equity , while others see it as an extra burden on earnings. The impact of this tax may be muted overall, affecting only major individual shareholders. For high-net-worth investors, strategies such as holding company structures may provide avenues to minimize tax exposure. For example, dividends received by family holding com

Oil Prices Surge Over 1% as Opec+ Delays Output Hike Amid Soft Demand

Oil prices rose over 1% in early Monday trading, as Opec+ postponed a planned December output hike by one month due to weak demand and increasing supply from non-member countries. Brent crude rose by $1.18 to $74.28 per barrel, and WTI crude gained $1.20 to $70.69 per barrel. The delay extends Opec+’s 2.2 million barrels per day (bpd) production cut through December, following an earlier postponement in October. This surprise move is seen as a sign of Opec+’s intent to support prices, contradicting market expectations of an output increase. Additional Market Drivers US Election : Markets are eyeing Tuesday's election, with polls showing a close race between Kamala Harris and Donald Trump. Fed Rate Cut : A 25 basis point rate cut by the Fed is anticipated on Thursday. China’s Stimulus : China’s National People’s Congress is expected to approve further economic stimulus this week.

Temasek-Backed Superscrypt Targets $100M for New Blockchain Fund

Superscrypt, a blockchain venture capital fund seeded by Singapore’s Temasek Holdings , is working to raise up to $100 million for its second investment fund, insiders revealed. Temasek and New York-based fintech firm Republic are expected to be anchor investors and general partners in the fund, though final amounts may shift. This comes after Temasek’s write-down of a $275 million investment in the failed crypto exchange FTX last year. Following that, Temasek refrained from direct crypto exchange investments due to regulatory concerns. However, blockchain investment momentum is resurging, with Superscrypt focusing on early-stage Web3 and blockchain applications .

Volkswagen’s CEO: Cost Cuts Essential to Fix "Decades of Structural Issues"

Volkswagen CEO Oliver Blume stated that the automaker's new cost-cutting measures are essential to address “decades of structural problems,” especially as demand in Europe slows and profits from China drop. In an interview with Bild am Sonntag , Blume highlighted that the high operating costs in Germany are a significant barrier to competitiveness. Last week, VW requested its workers accept a 10% pay reduction to maintain jobs and stay competitive. Reports also indicate plans to shut down at least three plants in Germany , downsize others, and potentially lay off thousands of employees, though VW has not confirmed these steps. Blume noted that while the methods for reaching cost-cutting goals might be flexible, the goals themselves are firm. Volkswagen has allocated approximately €900 million in its budget to implement these changes.

Reeves Admits Tax Pledge Misstep, Stresses Need for Budget Overhaul

UK Chancellor Rachel Reeves admitted she underestimated the budget gap when she told voters in June that Labour wouldn’t raise new taxes. Speaking on Sunday, Reeves acknowledged her error, explaining that after a briefing from senior Treasury officials, she realized the public finances were in a much more dire state than anticipated. In a major shift, her recent budget introduced a £40 billion package of new tax measures, including payroll levies and inheritance tax changes not outlined in Labour’s campaign promises. This unprecedented fiscal plan also entails a significant increase in borrowing, raising concerns about inflation and potentially influencing the Bank of England’s rate-cut trajectory. Reeves pledged that further major tax increases would not be necessary, saying, “We never need to do that again.” However, some economists predict additional revenue-raising measures may still be required to maintain funding across government departments. Meanwhile, the Conservative oppos

Wall Street Watches US Election, Keeps Cash Ready for Volatility

With one trading session left before the highly anticipated US presidential election, Wall Street is closely monitoring polls for Republican Donald Trump and Democrat Kamala Harris. However, rather than making big market moves, investors are holding back, deeming the election too close to call and uncertain. Market volatility is expected, with the Cboe Volatility Index (VIX) hovering above 20, signaling rising stress. Investors are opting to hold cash reserves , preparing to jump on opportunities that could arise from potential fluctuations. "We’re not positioning for an election outcome; it’s a coin flip," says Eric Diton of Wealth Alliance. This cautious approach extends to interest rate decisions from the Federal Reserve and upcoming corporate earnings, adding further unpredictability. Several investors, like Blanke Schein Wealth Management’s Robert Schein, have increased cash holdings to be ready for post-election market reactions . Others, such as Northern Trust, are

Dollar Weakens Amid Uncertain US Election Polls, Oil Gains as OPEC+ Delays Output Hike

The US dollar fell on Monday as polling data showed no clear lead in the US presidential election, easing expectations of a Trump victory that previously bolstered the dollar and Treasury yields. An index tracking the greenback dropped by the most in over six weeks, with major peers like the yen and Australian dollar gaining against it. Treasury futures rose as investors sought stability. The latest poll, showing Kamala Harris ahead by 47%-44% in Iowa , has investors cautious, while the US dollar gauge and 10-year Treasury yields had recently reached highs amid speculation of a Trump win. His support for looser fiscal policy and high tariffs has raised concerns about inflation, potentially impacting Treasuries. Meanwhile, oil prices rose, extending gains as OPEC+ delayed a production hike , and West Texas Intermediate climbed more than 1%. In China, officials announced measures to attract foreign investment in publicly traded firms, just days before the US election, which could

Buffett Cuts Apple Stake Again, Holding Shrinks by 60% This Year Amid Portfolio Rebalancing

Berkshire Hathaway Inc. continued to reduce its Apple holdings in the third quarter, marking a nearly 60% reduction in its stake since the start of 2024. Despite a 10.6% rise in Apple shares during Q3, Berkshire trimmed its position by 25%, following a nearly 50% cut in Q2. This strategic reduction has left Berkshire's Apple stake valued at $69.9 billion , down from $174.3 billion last year. Some key insights include: Apple’s Challenges: Apple faces hurdles like sluggish iPhone sales , increasing antitrust scrutiny , and AI competition . Recent AI updates were delayed, impacting investor confidence. Reasons for the Reduction: Analysts suggest that the move could be tax-related or portfolio rebalancing as Apple’s stake grew outsized in Berkshire’s portfolio. Cathy Seifert of CFRA noted it was “reasonable to lighten that exposure a bit.” Berkshire’s Cash and Equity Moves: Berkshire’s cash reserves reached $325.2 billion , with Buffett signaling caution in spending. Additiona

China Presses France to Guide EU on Mutually Beneficial EV Trade Solution

China has called on France to play an "active role" in influencing the European Commission toward a balanced solution for both European and Chinese electric vehicle (EV) sectors , China’s commerce ministry reported on Monday. During a meeting in Shanghai, Chinese Commerce Minister Wang Wentao expressed concern over the EU’s anti-subsidy investigation into Chinese-made battery EVs, which China claims has "seriously hindered" industry cooperation between China and the EU. Last month, the EU voted to implement tariffs on Chinese EV imports, intensifying trade tensions. In response, China launched investigations into EU exports such as pork and dairy and recently imposed anti-dumping measures on brandy . Wang asserted that China’s investigations adhere to World Trade Organization (WTO) rules and were initiated by domestic industry applications, contrasting this with the EU’s “rash” EV probe. Nevertheless, Wang affirmed China’s willingness to collaborate with the E

South Korean Opposition Agrees to Drop Capital Gains Tax for Retail Investors

South Korea's main opposition party has decided to support the government’s move to scrap the planned capital gains tax on retail investors , ending a lengthy dispute over the proposal. Opposition leader Lee Jae-myung stated on Monday that despite the party's initial stance, the decision reflects the challenging conditions of the South Korean stock market and concerns of the 15 million retail investors who rely on it. The KOSPI index rose over 1% following the news, with the Kosdaq Index climbing up to 2.9% . The Democratic Party, which controls the National Assembly, had argued that eliminating the tax would favor wealthy investors and reduce government revenue. However, the government maintained that boosting investor sentiment and stock valuations required shelving the tax. Retail investors, who represent around two-thirds of daily stock market turnover , backed the government, seeing the tax as a potential drag on an already underperforming market. Originally set for 2

Malaysia's Manufacturing Sector on Track for Recovery Despite Five-Month Activity Dip, Economists Say

Malaysia's manufacturing sector remains on the recovery path, economists assert, despite another month of declining purchasing activity. Kenanga Investment Bank highlighted that China's anticipated recovery, driven by stimulus efforts and a global technology upcycle, is expected to help Malaysian manufacturers regain momentum by the year's end. Policy measures, including cash transfers , will support domestic demand. “ Manufacturing conditions are set to stabilize , aided by improvements in export-oriented sectors as China’s economy responds to stimulus measures,” Kenanga noted. In October, Malaysia's PMI stayed at 49.5 , marking the fifth consecutive month of contraction, driven by subdued demand. However, new orders rose for the first time since June , and export demand has grown consistently for seven months , suggesting recovery prospects. TA Securities forecasts continued new order growth, while BIMB Securities points to positive trends in the semiconductor sect

Tech Earnings Fall Short Amid High Hopes for AI Profits

Investors anticipated that strong earnings from tech giants like Microsoft, Apple, Alphabet, Amazon, and Meta Platforms would fuel a rally in the S&P 500. However, despite meeting or exceeding expectations, these results failed to justify the high valuations of the "Magnificent 7" tech stocks. Consequently, the Magnificent 7 index dropped by 1.8% last week, with only Amazon and Alphabet seeing gains. The main issue is the uncertain profit outlook for 2025 , especially as tech companies ramp up heavy spending on AI infrastructure . Amazon, Microsoft, Alphabet, and Meta collectively spent a record $59 billion on capital expenditures last quarter, with plans to continue significant investment in AI computing power. Key takeaways: Microsoft's AI business expects to reach a $10 billion annual revenue rate, yet this growth comes with high costs , leading to a narrow commercial cloud margin. Microsoft’s shares dropped 6.1% after its earnings report due to concerns over

Global Stocks Rise on Amazon Surge; US Yields Climb Pre-Election

Global stocks rallied on Friday , fueled by a 6.2% surge in Amazon shares following better-than-expected results, while US 10-year Treasury yields hit a four-month high as investors approached the US presidential election with caution. Key highlights: Treasury yields rose to 4.361% , their highest since July, reflecting caution ahead of Election Day with Republican Donald Trump and Democrat Kamala Harris in a tight race. Amazon's gains offset Apple’s 1.2% dip , with the iPhone maker signaling modest growth in the upcoming quarter. Dow Jones Update : Nvidia will replace Intel in the Dow Jones Industrial Average, further impacting tech stock sentiment. Nvidia shares rose 1.9% in after-hours trading, while Intel dropped 1.4%. Additional market insights: The S&P 500 closed up by 0.41% but ended the week down 1.4%. Oil prices gained slightly due to Middle East tensions, with Brent settling at $73.10 per barrel. Dollar strengthened against the euro and yen, boosted by US jobs dat

Oil Prices Edge Up Amid Middle East Tensions but See Weekly Decline

Oil prices closed slightly higher on Friday, supported by reports that Iran may be preparing a retaliatory strike on Israel from Iraq , yet record-high U.S. output kept price increases in check. Brent crude futures rose 0.4% to $73.10 a barrel , and U.S. West Texas Intermediate (WTI) crude gained 0.3% to $69.49 . For the week, Brent posted a 4% decline , and WTI dropped around 3% as higher U.S. production offset Middle East tensions. The U.S. Energy Information Administration (EIA) recently reported a record 13.5 million barrels per day (bpd) in production. Key drivers in the oil market this week include: Geopolitical tensions : Israeli intelligence reports indicate possible retaliatory actions by Iran, which could escalate regional instability. OPEC+ considerations : The group may delay its planned December production increase due to weak demand concerns. U.S. production : Major players like ExxonMobil and Chevron reported record output levels, influencing supply. Expectations of a

Nvidia to Replace Intel on Dow Jones Industrial Average Amid AI Rise

In a significant shift, Nvidia will join the Dow Jones Industrial Average , replacing Intel after its 25-year presence on the blue-chip index. This transition highlights Nvidia’s ascendance in the semiconductor space, driven by its AI dominance, and reflects Intel’s recent challenges and declining market influence. Nvidia, whose valuation has surged to $3.32 trillion , has become pivotal to the AI industry, with its chips powering generative AI and other advanced technologies. In contrast, Intel has faced setbacks, including missing out on opportunities in AI and falling behind in manufacturing to competitors like TSMC. Intel’s stock has dropped 54% this year , making it the Dow's worst performer. The swap, effective next week, will see Nvidia alongside Sherwin-Williams, which is set to replace Dow Inc., further reshaping the index to reflect current industry leaders. Key Takeaways: Intel’s Decline: Intel's stock drop and lower revenue have diminished its influence in the chip

Markets Brace for US Election and Fed Meeting in High-Stakes Week

Financial markets are preparing for a potentially volatile week with two major events on the horizon: the US presidential election on Nov 5 and the Federal Reserve’s meeting on monetary policy. Both events could significantly influence market dynamics, as investors monitor the race between Republican Donald Trump and Democrat Kamala Harris and the Fed's latest stance on interest rates. Trump Trades and Election Volatility: The so-called “Trump trade” has gained traction, with the US dollar rising and Treasury bonds selling off , reflecting hopes for potential deregulation under a Trump win. In contrast, Harris is seen as supportive of clean energy stocks , which may rally if she prevails. Investors are also closely watching the impact of congressional control and the possibility of contested results, both of which could drive market swings. Fed's Policy Decision and Economic Data Impact: The Fed’s upcoming policy decision, expected to be a 25 basis point rate cut , may affect

Chevron Eyes Potential Job Cuts as Part of US$3 Billion Cost-Reduction Plan

Chevron Corp has flagged potential workforce reductions in the United States as part of its US$3 billion cost-cutting initiative . The oil giant aims to achieve these “structural” savings through asset sales, technology upgrades, and workflow changes, according to CEO Mike Wirth. Chevron recently established a US$1 billion innovation hub in Bengaluru, India , to support engineering and digital services, indicating a shift in operational focus that may impact U.S.-based roles. “It’s about much, much more than just jobs,” Wirth emphasized, noting that job cuts are only a small part of Chevron’s broader strategy to enhance efficiency in its commodity-driven business model.

Wife of Disgraced Three Arrows Founder Sells US$39M Singapore Mansion Despite Asset Freeze

Evelyn Tao Yaqiong, the wife of Zhu Su, co-founder of the defunct cryptocurrency hedge fund Three Arrows Capital (3AC), has sold her Singapore mansion for S$51 million (US$38.5 million) . The luxury property, located on Dalvey Road near the Singapore Botanic Gardens, was initially purchased for S$28.5 million in 2020 and redeveloped before its recent sale. Despite a court-imposed freeze on some of Zhu and Tao’s assets , this property transaction went through successfully. Zhu’s fortunes have sharply declined since 3AC’s collapse in 2022, which led to regulatory bans and a brief jail term due to non-compliance with liquidation efforts. The mansion was acquired by Chrispianto Karim , a member of the Indonesian Karim family, which owns the Musim Mas Group, a major palm oil conglomerate based in Singapore.

Elon Musk’s Attempt to Dismiss Ex-Twitter CEO’s Severance Lawsuit Rejected

A US judge has denied Elon Musk’s request to dismiss a lawsuit from former Twitter CEO Parag Agrawal and other top executives, allowing them to proceed with claims that Musk terminated them to avoid severance payouts . The lawsuit, filed in March, cites Musk’s comments in Walter Isaacson’s biography, where Musk reportedly mentioned a “$200-million differential” if he closed the Twitter deal that night instead of the next morning. The former executives, including Vijaya Gadde (Twitter’s former legal head), Ned Segal (CFO), and Sean Edgett (general counsel) , allege they are owed severance equating to one year’s salary and unvested stock awards . This case is one of several legal battles Musk faces over alleged unpaid severance. The court, led by Judge Maxine Chesney , also denied Musk’s attempt to dismiss a related suit from Nicholas Caldwell , a former general manager at Twitter, who is pursuing $20 million in compensation .

TGI Fridays Files for Chapter 11 Bankruptcy Amid Ongoing Financial Struggles

TGI Fridays, the iconic American casual dining chain, has filed for Chapter 11 bankruptcy protection in the Northern District of Texas, citing financial strain from the pandemic and an unsuccessful acquisition deal with UK-based Hostmore. Owned by TriArtisan Capital Advisors , TGI Fridays continues to operate its 39 US-based "Thank God it's Friday!" restaurants and has secured financing to support ongoing operations. Rohit Manocha, TGI Fridays’ executive chairman , attributed the company’s challenges to Covid-19 impacts and an unsustainable capital structure , adding that the restructuring would enable its locations to achieve full potential. In September, Hostmore withdrew from a deal to acquire TGI Fridays after being removed as the manager of TGIF Funding. This led to Hostmore’s financial troubles, closing 35 UK restaurants and cutting over 1,000 jobs. TGI Fridays emphasized that franchised locations in 41 countries remain unaffected by the bankruptcy and will conti

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