Alibaba, Ant to pour US$1bi into local services startup: China e-commerce giant Alibaba Group Holding Ltd and its affiliate Ant Financial will invest nearly US$1bil in a joint venture that they hope can tap China’s fast-growing local services market, focusing at first on food delivery. Local services, also known as online-to-offline, have been booming in China, with some of the country’s most valuable startups like taxi-hailing app Didi Kuaidi operating in this area. As more Chinese use phones for everything from shopping to booking restaurants, local services have become a key battleground for China’s internet giants Alibaba, Tencent Holdings Ltd and Baidu Inc as they try to attract users to their platforms. — Reuters
Forecasters say global vehicle sales growth will downshift: The pace of growth for global auto demand will slow to a 2.6% annual rate over the next seven years, and US sales could hit their peak in 2016, according to a forecast released today by AlixPartners, a consulting firm that works extensively with global automakers. AlixPartners forecasts annual global vehicle sales will grow to 103.2 million vehicles in 2021 from 87.9 million projected for 2015. The annual rate of growth for the next seven years will be slower than the 3.1% pace from 2007 to 2014, when demand in many markets was recovering from the financial crisis. - Reuters
China, Japan factories slow to respond to stimulus: China’s mammoth manufacturing sector showed some tentative signs of stabilising in June, according to a HSBC/Markit survey, without finding the momentum needed for a lasting recovery in the world’s second-largest economy. Optimism appeared in short supply as firms surveyed reported the sharpest reduction in hiring intentions for six years, regardless of Beijing’s efforts to kick-start activity through policy stimulus. The news from Japan wasn’t any better. The factory sector actually went backwards in June, as a recovery in the world’s third largest economy continued to struggle after a recession in the middle of last year. — Reuters
Sharp shareholders re-elect CEO, oaky bailout to secure survival: Sharp Corp shareholders re-elected CEO Kozo Takahashi and approved plans for a second bank bailout, backing the electronics company’s strategy to survive a deep downturn in its troubled display business amid fierce competition. Takahashi was re-elected despite disquiet among investors that his restructuring efforts, including 5,000 job cuts and the sale of its headquarters, did not go far enough. — Reuters
Nissan says paid CEO US$8.4il: Nissan Motor Co, Japan’s second-biggest automaker, said it paid chief executive Carlos Ghosn 1.035 billion yen (US$8.39mil) last business year, up 4% from the previous year. Ghosn, one of the highest-paid CEOs in Japan, received 995 million yen in compensation in the year ended March 2014. Ghosn is also CEO of Nissan’s alliance partner, Renault SA , which paid him 7.2 million euros (US$8.17mil) in 2014. Ghosn’s pay, though high for Japanese standards, was dwarfed by the record-shattering compensation for his Softbank Corp counterpart, Nikesh Arora, who made 16.56 billion yen (US$135mil) in roughly half a year, including an undisclosed one-off signing bonus for joining the Japanese telecoms company in September. — Reuters
Internet advertising to drive global ad spend, says Zenith: Surging growth in advertising via mobile phones and tablet computers will help Internet advertising overtake television as the dominant medium for global ad spending by 2017, a leading media buyer forecasts. Zenith Optimedia, owned by advertising agency Publicis, said it expects mobile advertising – via smartphones, iPads and other tablet computers – to more than double its share of global ad spending between 2014 and 2017, to 12.9%. It would contribute 70% of growth in all advertising spending over that period. — Reuters
Top local news
TNB plans RM10bil sukuk after power plant buy: Tenaga Nasional Bhd
(TNB) plans to raise as much as RM10bil in an Islamic bond issue, sources said, a move that comes after it agreed to buy debt-laden iMalaysia Development Bhd’s (1MDB) majority stake in 3B, a greenfield 2,000-MW coal-fired plant project. Plans for the bond issue, which would be the largest sukuk globally of 2015, are still preliminary, two sources said. TNB is planning a single issue bond rather than a series and has approached several banks to court proposals, one of the sources said. — Reuters
DneX O&G, energy venture under scrutiny: Dagang Nexchange Bhd’s (DneX) recent venture into the oil and gas, and energy sectors will come under scrutiny at the company’s AGM tomorrow. The Minority Shareholder Watchdog Group (MSWG) said it will seek more details about the acquisition of the entire equity interest in OGPC Sdn Bhd and OGPC O&G Sdn Bhd. DneX announced last year that it would buy the providers of equipment and services for O&G, petrochemical and power industries for RM203mil. - StarBiz
7-Eleven to work with courier service provider: 7-Eleven Malaysia Holdings Bhd is closing a deal with a courier service provider to use its wide network as last mile touch points. CEO Gary Thomas Brown said the company is in final discussion with a few service providers and would like to start the service by the year-end. - StarBiz
Mitrajaya to double revenue, profit this year: Construction-centric Mitrajaya Holdings Bhd aims to double revenue and profit in the current financial year to Dec 31, boosted by its two main contributing segments. “What the company is looking to achieve this financial year is to double our turnover. If we do, we will cross the RM1bil mark. We also hope to double in net profit,” said managing director Tan Eng Piow. Tan said he expects contribution from construction to remain at 70% this year, supported by its RM1.75bil outstanding order-book. - StarBiz
Fututech has RM130mil jobs in-hand: Fututech Bhd, which expects to complete a related-party deal by the third quarter this year to transform it into an end-to-end construction group, has RM130mil of contracts. It will also roll out a RM300mil project in Gohtong Jaya and another RM200mil project in Shah Alam. — StarBiz
KSL to start work on RM2bil Klang mall by year-end: KSL Holdings Bhd expects to start work on KSL City Mall 2, set to be one of the largest malls in Klang, by year-end. The property developer said the mixed development with a total gross development value of RM2bil, comprises of a mall, hotel and serviced apartments. — StarBiz
Debt including contingent liabilities still at manageable levels: The total debt to gross domestic product ratio, including government contingent liabilities, is still at manageable levels, economist Yeah Kim Leng said. “I would reckon present levels are at 70-odd per cent and these are still considered all right for an emerging economy like Malaysia,” Yeah said. He said tolerable levels of total debt should not exceed 80% to allow the country to continue attracting investments. — StarBiz
PRG Holdings cautious on maiden project launch date: PRG Holdings Bhd is still evaluating market conditions before deciding when it will launch its maiden property project, Picasso Residences. “We’re looking at market sentiment and strategising our launch. We’re using a targeted-client approach,” executive director Datuk Seri Yeoh Soo Ann said. - StarBiz
Malaysia can benefit from China initiative: Malaysia should leverage on its strengths to play a vital role in support of China’s economic initiative, as well as benefit from the opportunities created by the latter, says HSBC Bank Malaysia Bhd deputy chairman and CEO Mukhtar Hussain. Under China’s economic initiative, “One Belt, One Road”, the Chinese government planned to increase its involvement in South-East Asia via its investment in the infrastructure and linkages associated with the region. — Bernama
Emerging East Asia’s local bond market rises to US$8.3 trillion: The size of emerging East Asia’s local currency bond market continued to expand in the first three months of 2015, reaching US$8.3 trillion, up from US$8.2 trillion in the previous quarter, says the Asian Development Bank (ADB). “Growth, however, is moderating, growing only 1.6% in first quarter 2015 compared with 2% in the last quarter of 2014,” said ADB director, macroeconomics research and regional cooperation department, Dr Joseph Zveglich Jr, in presenting the bank’s latest Asia Bond Monitor report. “Government bonds comprised 60% of the total bonds.” — Bernama
Euronet unit buys Malaysian money transfer provider: Ria Money Transfer, the third-largest global money transfer company and a subsidiary of Euronet Worldwide, Inc announced that it has acquired IME (M) Sdn Bhd, a leading Malaysia-based money transfer provider, and certain affiliated companies. The acquisition of IME provides Ria with immediate entry into Asian and Middle East send markets. — Bernama
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