MONEY MASTER

KUALA LUMPUR, Aug 29 (Bernama) -- Bursa Malaysia close lower today as investors locked in profits ahead of the long weekend and the release of US inflation data later tonight, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 11.95 points, or 0.75 per cent, to 1,575.12 from Thursday’s close of 1,587.07. The index opened 0.24 of-a-point lower at 1,586.83 and moved between 1,572.24 and 1,587.30 throughout the day. On the broader market, decliners trounced advancers 704 to 324, while 469 counters were unchanged, 1,100 untraded and 66 suspended. Turnover improved to 3.08 billion units worth RM3.16 billion from 2.92 billion units worth RM2.92 billion on Thursday.

  Key Takeaways The European Commission has proposed eliminating tariffs on US industrial goods as part of last month’s EU–US trade deal. In return, Washington reduced tariffs on EU-built cars to  15% from 27.5% , effective Aug 1. The move avoids a full-blown trade war, though the agreement remains asymmetric, with the EU making broader concessions. EU proposals also include limited agricultural openings, while maintaining protection on sensitive sectors like beef and poultry. Deal Structure The framework deal was struck on  July 27  between US President Donald Trump and European Commission President Ursula von der Leyen. The EU accepted a  broad 15% tariff  across many exports to avert Trump’s threatened 30% blanket duties on EU goods. While two-thirds of EU–US trade in industrial goods is already tariff-free, Brussels will now remove residual duties averaging  1.35% . For US farm produce, concessions include  zero tariffs on potatoes , reduced t...

  Key Takeaways Stock Plunge:  Cambricon Technologies fell nearly 9% Friday, its steepest drop since April, after cautioning investors that its recent share-price surge had outpaced fundamentals. Rally Context:  Shares had soared 134% since late July, far outstripping the CSI 300 Index’s 8% gain, amid a broader AI-driven market rally in China. Warning:  The company cited “non-existent pipeline products,” ongoing US sanctions, and the challenges of moving up the technology value chain as risks. Guidance:  Revenue for 2025 is projected at  5–7 billion yuan , versus  1.2 billion yuan in 2024 , highlighting strong top-line growth expectations. Market Dynamics Cambricon’s filing underscores growing official and corporate caution over China’s AI-chip stock frenzy. Regulators have already signaled concern as retail investors dominate trading and banks tighten scrutiny on stock-funded credit usage. Peer firm Dosilicon suspended trading Friday due to “unusual f...

  Key Points French government bonds are attracting  dip buyers  after yields spiked on renewed political uncertainty. The  10-year OAT yield  touched 3.55% this week, the highest since March, narrowing the gap with Italian bonds. The  spread vs. German Bunds  briefly widened to 82 bps before easing back to ~79 bps. Amundi CIO Vincent Mortier says spreads are now at levels that “attract marginal buyers,” helping to stabilize the market. Market Context The volatility was triggered by Prime Minister Francois Bayrou’s surprise call for a  confidence vote on Sept. 8 , forcing him to seek either far-right abstentions or a highly unlikely alignment of leftist lawmakers. Political instability has weighed heavily on French assets since last June’s snap elections produced a hung parliament. Bonds:  Investors are reassessing valuations, with yields now at attractive entry points. Equities:  The  CAC 40 Index has fallen 3.6%  over the pas...

  Key Points SoftBank Group Corp priced a  ¥200 billion (US$1.3 billion) hybrid bond  with a  4.556% coupon , the highest for a domestically issued yen corporate bond this year. The 35-year non-call five structure was priced at  340 bps over JGBs , roughly three times the yield of 10-year government bonds. Proceeds will support funding needs tied to SoftBank’s  US$500 billion “Stargate” AI initiative . The deal size was upsized from an initial  ¥100 billion to ¥200 billion  amid strong funding requirements. Rating agencies are expected to classify  ~50% of principal as equity , given the bond’s subordinated, deferrable nature. Market Context SoftBank has been Japan’s most active corporate issuer this fiscal year, with  ¥820 billion in domestic bond sales , surpassing all peers. Elevated supply has pressured spreads higher, with the record coupon reflecting rising borrowing costs. Strategic Considerations Hybrid bonds allow SoftBank to ra...

  Key Takeaways China designates  2025–2027 as a critical window  for accelerating AI adoption. Policy priorities focus on six areas:  science & technology, industry, consumption, public welfare, governance, and global cooperation . Milestone targets:  70% AI penetration by 2027 , 90% by 2030, and a fully intelligent economy by 2035. Government to deploy  policy tools, financial support, and institutional reforms  to drive progress. Resource allocation includes  computing power optimisation, shared platforms, and AI product adoption  to reduce R&D costs. Policy Direction The National Development and Reform Commission (NDRC) published new guidelines under the  “AI Plus” initiative , signalling Beijing’s push to transform the digital economy into a  smart, AI-driven economy . Director Huo Fupeng stressed that the next one to two years mark a decisive period for deployment, requiring mobilisation of resources from government, i...

  Key Takeaways Eric Trump, EVP of the Trump Organization, called China “a hell of a power” in crypto despite its 2021 ban on digital token trading. He spoke at the  Bitcoin Asia conference in Hong Kong , highlighting both China and the US as the two “bitcoin superpowers.” Eric Trump predicted  bitcoin could reach US$1 million  in the coming years, urging long-term holding. Comments come as US President Donald Trump seeks a  summit with Xi Jinping , following sweeping global tariffs earlier this year. China’s Role in Crypto While China has officially banned cryptocurrency trading since 2021, residents have continued to  circumvent restrictions , keeping the country influential in global digital asset markets. Trump and investor David Bailey suggested China remains a key player, though neither provided detailed reasoning. US Stance Under Trump Administration The US has taken a sharply different approach, with President Trump actively  embracing the indu...

  Key Takeaways Pop Mart’s  new mini Labubu dolls sold out within minutes  in China, the US, Japan, and South Korea, underscoring sustained global demand. Shares dipped 0.6% on Friday after earlier gains, reflecting expectations already priced in. Stock has surged  260% YTD , valuing the company at  HK$433 billion (US$55.6 billion) . Mini Labubus priced at  79 yuan (US$11)  in China, with premium editions at  499 yuan . Overseas pricing nearly doubles local levels (US$22.99 in the US). Resale activity is robust, with secondary market prices at  1.5x–2.5x retail , mirroring speculative behaviour reminiscent of the 1990s Beanie Baby craze. While demand is expanding internationally, early concerns about  product craftsmanship  (crooked heads, uneven limbs) may present reputational risks. Strong Demand Across Markets The latest Labubu launch highlights Pop Mart’s ability to  drive consumer frenzy through scarcity and blind-box mech...

  Key Takeaways Cathay United Bank, a subsidiary of  Cathay Financial Holdings , plans to  expand aggressively in Asia  as global supply chains diversify away from China. Vietnam  is the main focus, with headcount to rise by  50% from 200 staff , alongside investments in technical capabilities. Expansion also includes  Hong Kong (staff to 200 by 2026) ,  Singapore (+20 staff for private banking) , and new branches in  Japan and India . The strategy is driven by the  “China plus one” trend , tariff disruptions under the Trump administration, and rising intra-Asia trade flows. The bank seeks to capture business from  Taiwanese and Chinese tech manufacturers  and Japanese corporates investing in Southeast Asia. Strategic Expansion Cathay United Bank sees Vietnam as its “second home,” positioning itself to ride on the  accelerated shift of manufacturing bases  out of China. Despite US tariffs — including a 20% levy on Vie...

  Key Takeaways TSMC , the world’s leading chip foundry, will begin marketing its proprietary  trade secret registry system  to suppliers and partners in Europe and the US. The system, developed in 2013, is already adopted by  20 Taiwanese firms , including  ASE Technology Holding Co. It integrates with HR and IT platforms, using  AI analytics  to monitor projects, manage joint R&D, and identify key talent. TSMC currently has  over 610,000 trade secrets logged  into the system. The move aims to  strengthen supplier innovation culture  while reinforcing TSMC’s competitive advantage. Despite strong cybersecurity measures, TSMC recently faced a theft case, underscoring the risks tied to safeguarding proprietary technologies. Strategic Implications TSMC’s decision to commercialise its trade secret management platform reflects a broader push to safeguard intellectual property while fostering innovation. By encouraging suppliers and e...

  Key Takeaways Rising wages and a resilient labour market have not translated into stronger consumer spending. Household loan applications, approvals and disbursements have slowed in recent months, signalling caution. AmBank projects  private consumption growth of 5% in 2025 , supporting GDP growth of  3.8% , below official forecast of 4.0–4.8%. Consumer sentiment remains subdued amid  global policy uncertainty  and  domestic policy changes , limiting the “feel-good factor.” Short-term support expected from the government’s  RM100 cash aid , injecting ~RM2 billion into the economy. The upcoming  RON95 petrol subsidy rationalisation  poses further uncertainty, though AmBank expects a  gradual rollout  rather than abrupt changes. Analysis Malaysia’s post-pandemic wage recovery and strong labour market have not spurred proportional increases in consumer spending. AmBank’s chief economist Firdaos Rosli highlighted weakening household b...

The Straits Times Index (STI) ended Friday’s session with notable stock-specific movements, led by gains in  Keppel Corp , while  Thai Beverage  was the day’s biggest laggard. Equities Keppel Corp (BN4.SG)  rose  3.18%  to  S$8.75 , topping the gainer list. Seatrium Ltd (S51.SG)  advanced  2.18% , while  DFI Retail Group (D01.SG)  gained  1.92% . Jardine Matheson Holdings USD (J36.SG)  added  1.78% , and  Frasers Logistics & Commercial Trust (BUOU.SG)  closed  1.11%  higher. On the downside,  Thai Beverage (Y92.SG)  slipped  1.08%  to  S$0.46 , making it the session’s top loser. REITs Prime US REIT USD (OXMU.SG)  led the sector, up  2.22%  at  S$0.184 . Keppel Pacific Oak REIT USD (CMOU.SG)  fell  2.22%  to  S$0.22 , ranking as the weakest performer. Most Actively Traded DBS Group (D05.SG)  remained the most traded counter, w...

Key Takeaways The US faces rising debt issuance needs amid an aging population and slowing growth. Foreign demand for Treasuries has softened, while the Fed is winding down QE, shifting the burden to domestic retail investors and mutual funds. Bond demand from older Americans is largely regulation-driven (e.g., target-date funds), not a natural preference. Financial repression—policies that push savers into bonds—may become necessary, but risks lower returns and slower economic growth. Japan offers a cautionary precedent: high debt sustained by pension funds and QE, but vulnerable to inflation and bond market stress. Analysis The longer-term US debt outlook is shaped by demographic shifts and constrained global demand. With fewer foreign buyers and the Fed retreating, domestic investors—particularly through retirement plans—will likely be leaned on more heavily. Target-date funds, which automatically shift portfolios into bonds as savers age, have already become a central mechanism in ...

  Key Takeaways: Hokuhoku Financial Group shares are up 95% YTD, the best among Japanese banks in the Topix Banks Index. Management expects the Bank of Japan (BOJ) to raise rates in October or December, positioning its portfolio toward short-dated JGBs to mitigate rate risk. Net income for FY2024 was ¥39.1 billion, the highest since FY2007, underpinning expectations of stronger shareholder returns. Strategic execution of synergies from its 2004 merger remains a key investor focus. Positioning for Higher Rates Hokuhoku Financial Group Inc., the top-performing Japanese bank stock in 2025, is shifting its securities portfolio toward short-dated Japanese government bonds (JGBs). President Hiroshi Nakazawa anticipates a BOJ rate hike later this year, in line with increasing analyst forecasts of an October or December move. By holding shorter-duration JGBs, Hokuhoku aims to reduce mark-to-market volatility and hold bonds to maturity without realizing losses. The group’s securities book s...

  Key Takeaways China may import up to  10 million tonnes  of soybeans from Argentina and Uruguay in 2025/26, a record level. Already  2.43 million tonnes  booked for Sept 2025–May 2026 shipments. Shift reduces reliance on the US, reinforcing Beijing’s long-term food security strategy. Bumper harvests in Argentina (50.9m tonnes) and Uruguay (4.2m tonnes) underpin higher supply. Brazil remains the dominant supplier, but diversification dilutes US market share further. Strategic Shift in Supply Chains China, the world’s largest soybean importer, is accelerating diversification of its supply base away from the US amid escalating trade tensions. This move follows years of Beijing’s policy to  reduce exposure to US farm products , a strategy that gained momentum after tariffs were first imposed during Donald Trump’s initial presidential term. The US traditionally relied on  Q4 sales  to China—its peak export window following harvest. Notably, China has...

  Key Takeaways: Market Selloff:  Jakarta Composite Index fell  2.3% intraday , closing down  1.3% , marking its sharpest fall since June 23. Currency Weakness:  Rupiah dropped  0.95% to 16,495/USD , before paring losses to  -0.8%  on suspected Bank Indonesia intervention. Trigger:  Violent protests in Jakarta, including a fatal incident, have raised political risk concerns and shaken investor sentiment. Regional Context:  Asian markets broadly cautious ahead of  US inflation data , with most currencies weaker; the  Philippines peso  and  South Korean won  down 0.4%. Broader Trend:  Despite today’s fall, Jakarta benchmark remains  +3.8% in August , following a strong rally since April. Market Reaction Equities:  The Jakarta Composite Index (JCI) staged its steepest intraday drop in two months, as investors reacted to violent protests over lawmakers’ pay and education funding. Profit-taking was a cl...

  Key Takeaways: Q2 beat, Q3 miss : Dell’s Q2 earnings of  $2.32/share  topped consensus ($2.29), but Q3 EPS guidance of  $2.45/share midpoint  fell short of expectations ($2.55). Revenue momentum : Q2 revenue rose to  $29.78 billion , ahead of estimates ($29.0 billion), reflecting resilience in PC and server demand. Market reaction : Shares slipped  4.4% after-hours , as investors focused on weaker earnings guidance despite a headline beat. Sector context : The miss highlights ongoing margin pressures in the PC and server industry, even as peers such as  HP Inc (+4.57%)  and  Microsoft (+0.57%)  trade higher on AI-driven optimism. Results Breakdown Q2 Earnings : Adjusted EPS: $2.32 vs. $2.29 expected. Revenue: $29.78B vs. $29.0B expected. Q3 Guidance : EPS: $2.45 (midpoint) vs. $2.55 expected. Revenue outlook not disclosed in detail but implied softer margins. Market and Investor Sentiment The results illustrate a  classic “be...

  Key Takeaways: De minimis exemption abolished : All imported packages, regardless of value, now face tariffs, ending a decades-old rule that exempted shipments under  US$800 . Impact on e-commerce : Online retailers like Shein and Temu face higher costs and paperwork, potentially eroding their price advantage. Winners and losers : US textile and manufacturing industries gain tariff protection, while consumers and small businesses importing via online platforms face higher prices. Revenue and enforcement : White House estimates  US$10 billion annually in new tariff revenues , with CBP already collecting nearly  US$500 million  since China/Hong Kong exemptions ended in May. Transition risks : Supply chain disruptions likely as postal agencies and express carriers adapt; full ad valorem duty collection required by  Feb 28, 2026 . Policy Shift The  de minimis exemption , dating back to 1938, allowed small-value imports duty-free. Raised to US$800 in 2015...

Key Takeaway: Stronger wages and a resilient labour market are not translating into higher consumer spending, raising concerns over Malaysia’s domestic demand-led growth. AmBank projects private consumption growth of  ~5% in 2025 , but notes that sentiment remains subdued amid global and domestic policy uncertainties. Household Spending Trends Income growth vs. spending restraint : Wages have risen post-pandemic, but loan applications, approvals, and disbursements at the household level have tapered off in recent months. Weak sentiment : Tepid household spending reflects a  low propensity to consume , driven by concerns over US policy shifts, global geopolitical risks, and domestic supply-side adjustments. Implications for Growth GDP contribution at risk : With  private consumption making up over 60% of GDP , slower spending momentum could weigh on the broader economy. Forecasts : Official projections: GDP growth  4.0%–4.8%  in 2025. AmBank forecast: GDP growth...

Key Takeaways Singapore’s REIT sector is regaining momentum, supported by falling interest rates, steady rental growth, and renewed fundraising activity. According to DBS Group Research, valuations remain attractive with S-REITs trading at 0.9x price-to-book and offering an FY26 yield of 5.8%, a 4% spread over 10-year Singapore government bond yields. Rising share prices and improved financing conditions have reopened the window for acquisitions, with $3.4 billion raised in equity and nearly $2 billion worth of deals announced year-to-date. Underlying rental growth across retail, office, and industrial assets further underpins stability, while hospitality faces near-term headwinds. Quick Glance: Sector Highlights Valuation & Yield S-REITs trading at  0.9x P/B , below historical average. Forecast  FY26 yield of 5.8% , ~4% spread over 10-year SGS yields. Fundraising & Acquisitions $3.4b equity raised  via placements/IPOs in 2025. $2.0b acquisitions  announced Y...

Bank Negara Malaysia (BNM) is stepping up efforts to evaluate tokenisation and central bank digital currency (CBDC) applications as part of Malaysia’s broader digital finance agenda, according to a Finance Ministry (MOF) statement to Parliament. Tokenisation Initiatives BNM is working with industry experts through the  Asset Tokenisation Industry Working Group forum  to explore applications of tokenisation via a co-creation approach. The recently launched  Digital Asset Innovation Hub (DAIH)  is also supporting pilot projects to test tokenisation use cases and assess risks. Key areas of focus include: Risk management:  addressing operational and technology vulnerabilities. Compliance:  ensuring adherence to AML/CFT frameworks. Interoperability:  overcoming potential fragmentation across platforms. BNM will publish a  discussion paper in 2H2025  on tokenisation of financial instruments, including  tokenised deposits and  ringgit-back...