MONEY MASTER

US tariff uncertainty will likely remain a  key market overhang , even after the  Supreme Court of the United States struck down tariffs imposed under the IEEPA, according to Malaysian research houses. The reason? President  Donald Trump  has already reintroduced global tariffs under a different legal channel. What Changed — And What Didn’t After the court ruled against tariffs imposed under the  International Emergency Economic Powers Act (IEEPA) , Trump announced: 10% global tariffs Plan to raise them to  15%  under  Section 122 of the 1974 Trade Act Valid for  150 days , unless Congress approves an extension Key issue: Although legally different,  protectionism remains intact . Public Investment Bank noted Trump is unlikely to retreat, as tariffs are central to his foreign policy strategy. Kenanga Investment Bank added: New tariffs are capped at 15% But US officials suggest tariff revenue levels will remain broadly unchanged Meaning m...

Emerging Asian currencies weakened on Friday, tracking a stronger US dollar after the Federal Reserve signaled a slower, more measured pace of monetary easing. Stocks Cool Off The  MSCI EM Asia equities index  — dominated by China, Taiwan, and South Korea — slipped just below a four-year high. Singapore’s Straits Times Index  dropped for the sixth straight session after hitting a record high last week. Taiwan and South Korea stocks  also pulled back from record levels reached on Thursday. Markets had rallied sharply ahead of the Fed decision on hopes for further rate cuts. Analysts still see easier US policy supporting risk appetite, but valuations in Asia’s major markets are starting to look stretched. Currency Moves An  MSCI index of EM currencies  fell for the second day after touching a 10-week high earlier in the week. Malaysia’s ringgit : weakest in a week. Indonesia’s rupiah : hit a four-month low, down ~1.5% since Finance Minister Sri Mulyani’s dism...

  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...

Malaysia’s stock market, once driven by optimism around artificial intelligence (AI), is now facing a sharp reversal. The rally that pushed the FTSE Bursa Malaysia KLCI higher last year has lost steam as global trade risks and U.S. policy shifts weigh heavily on investor sentiment. US Tariffs and AI Export Curbs Dampen Outlook The decline comes amid rising concerns over the U.S. government's plans to  restrict AI chip exports , a move that could jeopardize Malaysia’s fast-growing data centre industry. Adding to the pressure, U.S. President Donald Trump has  threatened to impose a 25% tariff on Malaysian goods , further darkening the market’s prospects. As a result, Malaysia's benchmark  KLCI index has fallen 7% year-to-date , ranking it as one of Southeast Asia’s worst performers, just ahead of Thailand. Analyst Downgrades and Outflows Major research houses have scaled back their forecasts: UOB Kay Hian  has cut its KLCI year-end target to  1,620 , down from an ...

Malaysia’s technology and construction sectors came under selling pressure on Monday morning following reports of a draft US policy that could restrict the export of AI chips to Malaysia and Thailand. The proposed regulation, not yet finalised, aims to curb potential re-exports of advanced chips to China via third-party countries, intensifying concerns around global supply chain disruption. Key Market Reactions: Inari Amertron Bhd (INARI)  fell  5.8% to RM1.96 , reflecting investor concerns over its role in the global semiconductor value chain. Gamuda Bhd (GAMUDA)  declined  5.2% to RM4.83 , with potential implications for its data centre-related construction contracts. The  FBM KLCI  dropped nearly  1% , down 15 points, signalling broader market caution. Background & Policy Risk: According to Bloomberg, the US Commerce Department is working on a draft rule to block AI chip shipments to Malaysia and Thailand as part of efforts to tighten control on...

The Fed just fired back at Capitol Hill. In rare, blunt language, Chair Jerome Powell dismissed a GOP proposal to end interest payments to banks—calling the cost-saving claim “an illusion.” Here’s what you need to know: “Not saving, just spinning.”  At a Senate Banking Committee hearing on Wednesday, Powell torched the argument that eliminating the Interest on Reserve Balances (IORB) would save US$1.1 trillion. “There’s an illusion that it would save money. That is not the case.” Why? Because the IORB, and its cousin—the Overnight Reverse Repo (ON RRP) facility—are core levers of the Fed’s interest rate control mechanism. IORB at a Glance: Current IORB: 4.4% ON RRP: 4.25% Bank reserves: US$3.2–US$3.4 trillion “You want chaos? Go back to scarce reserves.”  Powell cautioned that removing these tools would force the U.S. back to a pre-2008 “scarce reserves” system—describing it as a “long, bumpy, volatile road.” The ample reserves regime isn’t just technical jargon—it supports fi...

Mass Termination of US-Funded Health Programs Under Trump’s Foreign Aid Review Over 90% of US-funded global health programs have been terminated , following a 90-day review ordered by President Donald Trump. Programs addressing HIV, malaria, maternal health, and tuberculosis (TB) have been significantly affected. USAID cites "America First" policy alignment  as the basis for the cuts. Major Health Projects Affected UNAIDS' contract with USAID has been cancelled. Khana, a key HIV and TB organisation in Cambodia, received termination notices. Several large HIV/AIDS programs in South Africa lost funding , impacting services for vulnerable groups, including LGBT+ people and sex workers. US Secretary of State Marco Rubio’s Stance Dismissed concerns that  Washington is ending foreign aid  and emphasized that waivers were granted for life-saving programs. However,  recent court documents indicate broad termination of health programs, including some initially covered by waiv...

Tech Giant Calls for Revisions to US Trade Policies Microsoft will push the Trump administration to ease AI chip export restrictions  for key US allies, including  India, Switzerland, and Israel , according to a report by  The Wall Street Journal  on Thursday. The proposal, expected to be published in a  Microsoft blog post , argues that  current curbs could drive allies toward China for AI infrastructure needs . Microsoft did not immediately respond to requests for comment. US-China AI Battle Intensifies Washington’s expanded AI chip export restrictions—introduced during Joe Biden’s final days in office—aim to limit China’s access to advanced computing power. These measures have  hurt US chipmakers and Big Tech companies  that rely on China as a major market for semiconductors. China is  capitalizing on US export restrictions , promoting itself as a  more reliable AI technology partner  for other countries, Microsoft President...

As his second term approaches, US President-elect Donald Trump has made significant appointments to bolster his administration's defence and cryptocurrency policy teams. The high-profile selections include billionaire Stephen Feinberg as the deputy secretary of defence and Michael Kratsios as head of tech policy at the White House. Defence Leadership Stephen Feinberg , co-founder of private equity firm Cerberus Capital Management, is set to take on the No. 2 role at the Pentagon. Known for his investments in hypersonic missile technology and other defence-related ventures, Feinberg will oversee day-to-day Pentagon operations. His appointment comes as Trump’s pick for secretary of defence,  Pete Hegseth , faces resistance in the Senate. Other defence appointments include: Michael Duffey : Undersecretary of acquisition and sustainment. Emil Michael : Undersecretary of research and engineering. Keith Bass : Assistant secretary for health affairs. Joe Kasper : Chief of staff to Pete He...

Bitcoin soared to a new record high of $89,599 early Tuesday, briefly surpassing $89,000 , and pushing the overall cryptocurrency market value to an unprecedented level since the pandemic. This rally has accelerated since the US election, with Bitcoin climbing around 32% since November 5, spurred by the anticipated pro-crypto stance of President-elect Donald Trump. With Trump promising crypto-friendly regulations and potential strategic reserves of Bitcoin, the market has seen a surge in speculative buying. His agenda contrasts sharply with previous regulatory crackdowns, igniting excitement across both large and small tokens and raising the crypto market's value to approximately $3.1 trillion , as reported by CoinGecko. The optimism is evident in Bitcoin’s options market, with traders placing bets on the token surpassing $100,000 by year-end, according to Deribit exchange data. MicroStrategy, the largest corporate Bitcoin holder outside the ETF sector, recently added 27,200 Bit...