MONEY MASTER

Bank Negara Malaysia (BNM) announced on Thursday that it will  phase out the Kuala Lumpur Interbank Offered Rate (KLIBOR)  and transition to the  Malaysia Overnight Rate (MYOR)  and  Malaysia Islamic Overnight Rate (MYOR-i)  as the country’s new benchmark reference rates. According to BNM, the  KLIBOR will be discontinued effective Jan 1, 2029 , marking a complete shift toward  transaction-based benchmarks  aligned with global best practices. The  MYOR  (introduced in 2021) and  MYOR-i  (introduced in 2022) are based on  actual overnight interbank transactions , offering higher transparency and reflecting real market conditions. Transition Timeline By Oct 1, 2026:  Financial institutions must be ready to offer MYOR- and MYOR-i-based products as standard. By July 1, 2027:  MYOR-i to become the reference rate for all new Islamic products. By June 30, 2028:  All legacy KLIBOR contracts to be converted to M...

Key Takeaways ECB Vice President Guindos : All options remain on the table for interest rates. Inflation steady at 2% , third straight month on target. Mixed voices within ECB : Some warn against cuts, others say further easing can’t be ruled out. Markets calm : No bond stress, sovereign spreads not a concern. The European Central Bank (ECB) stands ready to adjust its policy stance if conditions shift, even though current interest rates are seen as appropriate, according to Vice President  Luis de Guindos . “We all agree that we must keep all options open,” Guindos said in an interview with  Die Welt . “If the situation changes, we will adjust our stance accordingly.” Inflation and Economic Backdrop Eurozone  inflation eased to 2% in August , matching the ECB’s target for a third month, down from an earlier estimate of 2.1%. Wage pressures that previously fueled price growth are moderating, with negotiated pay gains expected to stay below 2% into 2026. The ECB projects a ...

August is shaping up to be a critical month for financial markets, with major policy decisions, economic data releases, and key earnings reports on the calendar. Investors should prepare for potential volatility across equities and other asset classes. August 1: Tariff Deadline and Jobs Report The month begins with President Trump’s tariff deadline and the release of July’s jobs data. Any escalation in trade tensions or a weak employment report could increase expectations of a Federal Reserve rate cut, while stronger numbers may reinforce the current “higher for longer” stance. Big Tech Earnings August 4: Palantir (PLTR) – Insight into enterprise AI and government spending trends. August 5: AMD and Super Micro (SMCI) – Investors are watching for strong AI-related guidance to justify valuations. August 12: Circle (CRCL) – A focus point amid rising stablecoin regulation. August 27: NVIDIA (NVDA) – One of the most anticipated earnings reports of the month as AI demand remains in the spotl...

UK Chancellor of the Exchequer Rachel Reeves has reportedly cautioned her Cabinet colleagues that the upcoming Autumn Budget may require further tax increases—albeit smaller in scale than last year’s £40 billion package—due to fiscal pressures arising from policy reversals on welfare reform. According to  The Times , Reeves emphasized that while the scale of upcoming tax adjustments will be more modest, the decisions will be politically and economically challenging. The Labour government’s decision to reverse previously planned welfare changes has created a budgetary gap that must be addressed to maintain fiscal credibility. Market Jitters and Ministerial Confidence The Chancellor's comments come in the wake of a volatile week in UK financial markets. Investor confidence was shaken following a tearful parliamentary appearance by Reeves, which sparked unfounded speculation about her position. Concerns were quickly calmed after Prime Minister Keir Starmer publicly reaffirmed his conf...

Key Developments: Trump’s tariffs take effect:  25% duties on imports from  Mexico and Canada , while  China faces a 20% tariff increase  on top of existing levies. China retaliates  with  10%-15% tariffs  on US goods and  export restrictions  on 25 US firms. Canada and Mexico vow countermeasures , with  C$30 billion in immediate retaliatory tariffs  from Ottawa. Market turmoil ensues , as global stocks slide and investors flee to safe-haven assets. US recession fears rise , with businesses warning of  supply chain disruptions  and  higher consumer prices . North America: Trade Friction with Allies Canada’s Swift Response Prime Minister Justin Trudeau  condemned the tariffs, calling them a  violation of the US-Mexico-Canada Agreement (USMCA) . Canada retaliates with  25% tariffs on C$30 billion (US$20.7 billion) in US goods , targeting: Beer, wine, and bourbon Home appliances Florida orange juice Ontari...

Central Huijin Investment Ltd. , a key unit of China's sovereign wealth fund, has set a record for its debt issuances , selling 207 billion yuan ($29 billion) in bonds this year. This marks the largest onshore credit market issuance since the firm first tapped into it in 2010. The latest bond sales include 9 billion yuan in three-year debt securities and 15 billion yuan in five-year bonds , according to sources. Central Huijin has historically stepped in to buy equity during volatile periods to stabilize the stock market , and its holdings of trading assets surged by 388% in the first half of 2024. With China’s stock market rallying by 23% in recent months due to new stimulus measures , Huijin’s actions align with broader efforts to prop up the economy. The People’s Bank of China (PBOC) has also introduced liquidity tools, such as share buybacks and equity swaps , to assist market recovery. State-led buying, as suggested by DBS Bank strategist Wei Liang Chang , could further...

China’s central bank, the People’s Bank of China (PBOC), has announced its intention to sell government bonds in an effort to cool a record-breaking market rally. This move comes as part of broader efforts to stabilize the financial system and manage economic volatility. Key Takeaways Bond Sales: The PBOC is ready to sell government bonds to cool the market and stabilize the financial system. Market Reaction: China’s bond market has surged due to economic concerns and expected rate cuts, but the PBOC aims to prevent excessively low yields. Financial Stability: The PBOC’s intervention is designed to safeguard financial stability and manage economic risks. Policy Reforms: This move is part of broader monetary policy reforms aimed at enhancing liquidity management and supporting economic growth. Conclusion The PBOC's announcement to sell government bonds through agreements with major banks marks a significant step towards stabilizing China’s financial markets. As the country prepa...

The recent Labour Party victory in the UK has significantly impacted financial markets, bringing both immediate gains and future challenges. As Keir Starmer becomes the new prime minister, investors are closely watching how Labour’s policies will shape the UK’s economic landscape and long-term investor confidence. Positive Market Reactions Stock Market Gains: The FTSE 100 Index rose by 0.38%, and midcap stocks increased by 0.4%. Bond Yields: 10-year government bond yields dropped to 4.17%. Pound Sterling: Increased nearly 0.1% against the dollar. Political Stability Labour’s landslide victory provides much-needed political stability. This stability is crucial for equity markets and is expected to benefit businesses with significant exposure to the UK economy. Economic Context Record Highs: UK stocks have hit record highs this year, supported by a stable economy and decreasing inflation. Stable Premiums: The premium for holding UK gilts over German bonds has remained stable, indica...

The vote for the most powerful man in this planet, (or woman in this case) is entering into its final act, and the market is shaken by the growing uncertainties surrounding it. Come Nov 8, it’s either Democratic nominee, Hillary Clinton or Republican nominee, Donald Trump that will become the new president-elect of the United States of America (US). While average polls compiled by RealClearPolitics website shows Clinton led by 7.1 percentage points in mid-October, the gap has narrowed down to just 1.7 percentage points following the FBI’s eleventh-hour resuscitation of her email controversy (as of Nov 6). Real Clear Politics average on US election polls (Source: Real Clear Politics) DOES IT MATTER? THE EQUITY INDEX SAYS SO Well, here is a quick look at the world equity index in the past one week, and it's shocking. In the Americas region In the Asia Pacific region In Europe, Middle East & Africa region Source: Bloomberg website It is sh...

The financial market is being very volatile, partly influenced by the oil price's volatility. But unlike last week, we have a more positive news circulating the financial world....Saudi to meet Russia in Doha on Tuesday, to discuss the market. Saudi meeting Russia to talk about oil this Tuesday could be the salvation This good news definitely is shared by the global market as most markets seen an uptrend after a bad week last week.  Oil advances above $30 on the news Saudi Arabia’s Oil Minister Ali al- Naimi will speak with his Russian counterpart Alexander Novak in the Qatari capital. This is an interesting development given that Iran is getting into the game as well. Oil is still down about 17 percent this year BP Plc predicts the market will remain “tough and choppy” in the first half as it contends with a surplus of 1 million barrels a day. Speculators’ long positions in West Texas Intermediate through Feb. 9 rose to the highest since June, according to data from ...