China media group to sponsor key PMI economic indicator: Chinese media group Caixin will take over sponsorship of a key economic indicator previously funded by British banking giant HSBC and which has frequently contradicted official figures, it said today. The China Purchasing Managers’ Index (PMI), compiled by financial information services provider Markit, tracks activity in factories and workshops and is a closely watched barometer of the health of manufacturing in the world’s second-biggest economy. The release will be renamed the Caixin China PMI and will be published from August, Caixin Media said in a statement. — AFP
Puerto Rico governor calls for bankruptcy; adviser says island ‘insolvent’: Puerto Rico’s governor on Monday called for the commonwealth to be allowed to restructure its debts under US bankruptcy code, while a newly appointed adviser to the US territory said it is “insolvent” and will soon run out of cash. Governor Alejandro Garcia Padilla, in a televised address, said sacrifice must be shared by bondholders, as he called for Washington to allow a bankruptcy debt restructuring. The Caribbean island is struggling to relieve a US$73bil debt burden. It came to a crunch point on Monday after a dire report on its stability by former International Monetary Fund economists was released ahead of key deadlines on Wednesday to repay debt. — Reuters
Thai factory output tumbles in May: Thai factory output fell more than expected in May, fresh evidence that the junta has not been able to pull South-East Asia’s second-largest economy out of a rut. The Industry Ministry said today that May output dropped 7.6% from a year earlier, the largest fall since March 2014. A Reuters poll forecast a 4.8% decline. — Reuters
China May services trade deficit widens: China’s trade deficit in services widened to US$18.3bil in May, as Chinese tourists continued to spend more abroad than foreigners visiting the country, the foreign exchange regulator said. The deficit was led by a US$16.2bil gap in spending between Chinese and foreign tourists, according to data from the State Administration of Foreign Exchange. The country posted a US$17.3bil deficit on trade in services in April. Last year the services sector had a deficit of US$10.2bil in May. — Reuters
Sony to raise up to US$3.6bil to boost sensor production: Sony Corp said it plans to raise up to 440 billion yen (US$3.6bil) by issuing new shares and convertible bonds to invest in its fast-growing image sensors business. The company said it expects to raise 321 billion yen from a public offering and 119 billion from issuing convertible bonds. — Reuters
Top local news
Xin Hwa makes firm debut: Integrated logistics service provider Xin Hwa Holdings Bhd
made a firm debut on Bursa Malaysia at 79 sen, or nine sen above its IPO price of 70 sen, today amid the global rout of world equities sparked by the Greece debt crisis. The Johor-based company raised RM26.45mil from its listing on the Main Market of Bursa Malaysia Securities. - StarBiz
Ikhmas Jaya plans to bid for RM5bil jobs by year-end: Ikhmas Jaya Group Bhd, which is slated to list on Bursa Malaysia’s Main Market on July 27, plans to bid for construction jobs worth up to RM5bil by the year-end. Group managing director Datuk Ang Cheng Siong said the company’s tender book now stood at RM3bil. - Bernama
Daya Materials expects to return to the black in FY15: Daya Materials Bhd is confident of a turnaround in the current financial year to Dec 31, 2015. It posted a net loss of RM35.7mil last year. Group chief executive officer Datuk Lim Thean Shiang said the company’s turnaround strategy was based on its upstream and downstream businesses. - StarBiz
1MDB gets proposals for Penang, Pulau Indah land: 1Malaysia Development Bhd president and group executive director Arul Kanda said the company has received significant expressions of interest in its land parcels Air Itam, Penang and Pulau Indah, Klang. The company intends to appoint an independent real estate consultant to assist in reviewing the various proposals, he added. “A further announcement providing an update on the progress will be made within the next two weeks,” Arul said.
AmInvestment: Greek debt crisis to speed up Govt efforts to stimulate economy: Concerns over the Greek debt issue, which has been weighing on Asian stock markets, including Bursa Malaysia, will accelerate the Government’s efforts to stimulate the local economy. AmInvestment Bank head of equity capital markets Yong Saiyeen expects the Government to announce more construction projects from July onwards. — Bernama
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