South Korea cuts interest rates to record low: South Korea’s central bank cut its policy rate by 25 basis points to a record-low 1.5%, as policymakers sought to shield a tottering economy from an outbreak of a deadly respiratory disease. It was the fourth rate cut in less than a year and the seventh since the current easing cycle began three years ago as the trade-reliant economy, the fourth largest in Asia, has struggled for traction over the past year. — Reuters
Australia jobless rate drops to 6%: Australia’s unemployment rate unexpectedly fell to 6% in May, data showed, in a sign the economy could be starting to better adapt to the end of a mining investment boom. The jobless rate ticked down from an adjusted 6.1% in April. The May figures were better than expected, with the consensus of economists that the unemployment rate would remain steady. — AFP
China May investment up: China’s fixed-asset investment grew at its slowest rate in nearly 15 years in May, missing expectations even as growth in retail sales and factory output steadied, arguing for Beijing to increase policy support to avert a deeper downturn. Fixed-asset investment, a crucial driver of the world’s second largest economy, rose 11.4% in the first five months of this year from the year-earlier period, missing a Reuters poll forecast for a 12% gain, the same as in April. - — Reuters
Rising cost on US rate swaps raises worries: A widening gap in the costs to hedge interest rate risk between platforms based in London and Chicago is generating losses for Wall Street dealers and creating concern about how well this corner of the bond market will respond when the Federal Reserve raises rates. In the last month, dealers have frequently been forced to pay a costly premium on London’s LCH.Clearnet to offset their risk for facilitating interest rate swaps on smaller rival Chicago Mercantile Exchange on behalf of their clients. — Reuters
ICBC and CITIC Trust locked in spat over failed trust products: China’s biggest state-owned bank and trust company are arguing over who should be held accountable after two high-yield trust products they were both involved in failed, leaving investors owed 500 million yuan (US$80.57mil). — Reuters
Hedge fund, Samsung Group locked in fight over US$8bil merger: US activist hedge fund Elliott filed another injunction to block a proposed US$8bil merger of two key Samsung Group companies, escalating a conflict over a deal seen key to leadership transfer at South Korea’s top conglomerate. Elliott said it had filed its second injunction with a South Korean court, this time to stop builder Samsung C&T Corp from selling treasury shares amounting to a 5.8% stake to KCC Corp in a bid to gain KCC’s support for the proposed all-share takeover offer from Cheil Industries Inc. — Reuters
Top local news
CIDB positive its event can attract RM100mil deals: The Construction Industry Development Board (CIDB) is optimistic that its International Construction Week (ICW) 2015 later this year will again attract business-matching deals worth over RM100mil. CIDB corporate and business sector senior general manager Sariah Abdul Karib said last year’s ICW generated business-matching deals worth RM102.96mil. — StarBiz
World Bank says East Asia and Pacific region growth to ease to 6.7% this year: The World Bank expects growth in the East Asia and Pacific region, which includes Malaysia, to ease to 6.7% this year and remain stable over the next two years. Commodity exporters, such as Malaysia and Indonesia, are expected to face pressures from lower global prices of oil, gas, coal, palm oil, and rubber. — Bernama
Malaysia April factory output up 4%: Malaysia’s industrial production in April rose 4% from a year earlier, in line with market expectations, data from the Statistics Department showed. A Reuters poll had forecast factory output to increase at a slower pace of 4%, after registering stronger-than-expected growth a month earlier. - Reuters
Arul says 1MDB met Deloitte in February to discuss FY15 audit plans: The 1Malaysia Development Bhd (1MDB) board and management met auditors Deloitte as early as February 2015 to discuss the start of an audit after the financial year end of March 31, 2015. 1MDB president and group executive director Arul Kanda said the audit of a major 1MDB subsidiary, Edra Global Energy Bhd, had already started and it was well under way. Arul issued the statement to refute a report that the Finance Ministry and company directors were “refusing to allow Deloitte” to begin auditing 1MDB. — StarBiz
Steel makers want Govt to block gas price hike: Local iron and steel makers want the Government to block the proposed 10% hike in natural gas prices from July 1, as announced by Gas Malaysia Bhd
. The Malaysian Iron and Steel Industry Federation said it was “utterly disappointed and deeply concerned” with the announced price increase. The price of gas supplied to industries will go up by about 10% from RM19.77 per million British thermal unit to RM21.80 for industrial users, including steel producers in Peninsular Malaysia. — StarBiz
IDB should go beyond financial assistance, says Husni: The Islamic Development Bank (IDB) should not only provide financial assistance but also disburse knowledge and expertise to member countries, says Second Finance Minister Datuk Seri Ahmad Husni Handzlah. “Assistance to member countries should be packaged with knowledge transfer as a value added proposition,” he said at the 40th IDB Board of Governors’ Annual Meeting, in Maputo, Mozambique. — Bernama
SC announces 6 equity crowdfunding platforms: The Securities Commission has announced six equity crowdfunding platforms, which are expected to start operations by year-end. The six are Alix Global, Ata Plus, Crowdonomic, Eureeca, pitchIN and Propellar Crowd+. — StarBiz
Prolexus says Kluang land buy in line with expansion plans: Prolexus Bhd said the recent RM9.9mil land purchase in Kluang was in line with the apparel company’s facility expansion plan and that the purchase price was within market range. — Starbiz
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