Finance Minister Taro Aso (above) and Economics Minister Akira Amari, who are tasked with crafting a package to ensure the tax hike does not derail the escape from deflation, have been at loggerheads.
Market wrap: Wall Street closed lower on Thursday, ending a three-day winning streak, as Wal-Mart shares dragged on the market after a lacklustre earnings report and oil prices pulled back. Eight of the 10 major S&P sectors finished negative, led by a 0.9 percent decline in energy, which had helped drive the recent rally. - Reuters
The DJIA fell 40.4 points, or 0.25%, to 16,413.43, the S&P 500 lost 8.99 points, or 0.47%, to 1,917.83 and the Nasdaq dropped 46.53 points, or 1.03%, to 4,487.54.
Forex summary
*The ringgit was down 0.38% to 4.1875 per US$
*It fell 0.12% to 4.6493 per euro
*Down 0.73% to 5.9991 per pound sterling
*0.23% lower to 2.9776 per Singapore dollar
*0.33% lower to 2.9916 per Aussie
*Down 0.46% to 3.6999 per 100 yen
Energy
Brent settled lower on Thursday after data showing US crude inventories rose to record highs overshadowed production freeze plans by oil major producers that had sharply boosted the market this week. Brent crude settled down 22 cents at US$34.28 a barrel, having risen more than US$1.20 before the data. It had gained a total of more than US$4 between Friday and Wednesday. - Reuters
Top foreign stories
Japan's Aso: G20 to discuss China, oil, US monetary policy: Japanese Finance Minister Taro Aso said finance chiefs from the Group of 20 major economies will discuss China's excess capacity, tumbling oil prices, and US monetary policy when they meet in Shanghai next week. - Reuters
Citi raises CEO Corbat's pay by 27% in 2015: Citigroup Inc raised chief executive Michael Corbat's pay by an estimated 27% in 2015, a year in which the bank's profit more than doubled. Corbat earned an estimated US$16.5 million in 2015, including deferred shares worth about US$4.5 million. He earned US$13 million in 2014. - Reuters
IBM to acquire Truven Health Analytics for US$2.6b: International Business Machines Corp said on Thursday it plans to acquire Truven Health Analytics, a provider of healthcare data and analytics, for US$2.6 billion, marking its fourth major health data-related deal in the past year. - Reuters
US jobs market firming; manufacturing still on the ropes: The number of Americans filing for unemployment benefits unexpectedly fell last week, pointing to labour market strength that keeps Federal Reserve interest rate hikes on the table this year. Other data on Thursday showed factory activity in the mid-Atlantic region contracting at a slower pace in February and hinted at a pick-up in wage growth. But the signs of stabilisation in the struggling manufacturing sector were tempered by further declines in new orders and employment. - Reuters
Top local stories
IJM raises stake in Scomi: IJM Corp Bhd
has emerged as the single largest shareholder in Scomi Group Bhd after converting its bonds to equity. The conversion will give IJM an immediate 24.4% stake in the O&G services company from 7.66% previously. IJM converted its convertible redeemable secured bonds of an aggregate nominal value of RM110mil to an equity stake at 36.5 sen, slightly more than double Scomi's current share price of 15 sen. - StarBiz
I-Bhd targets RM1.5bil GDV from two projects: I-Bhd is looking to achieve a gross development value (GDV) of RM1.5bil this year from two of its projects: The high-end 8Kia Peng condominium, which is expected to rake in some RM1bil, and Hyde Towers @ i-City.
* I-Bhd's revenue the current fiscal year is expected to be higher than FY15 For the nine months ended September 2015, revenue stood at RM183mil. Its full-year results are expected to be released soon. - StarBiz
Malaysia's GDP growth slows in fourth quarter: Malaysia's economic growth as measured by the gross domestic product (GDP) expanded by 4.5% in the fourth quarter of 2015 versus a year earlier, and above the 4.1% median expectations of economists. For the full year, GDP came in at 5% against 6% in 2014 and marginally higher than the median expectations of a 4.9% rise. - StarBiz
Genting Singapore profit slides to 5-year low: Genting Singapore Plc's net profit for the financial year ended Dec 31, 2015 fell 70% to S$193.06mil, a five-year low, due to lower spending by high rollers from China. Revenue for the year fell 16% to S$2.4bil from S$2.86bil in FY14. - StarBiz
AirAsia CEO: Cheap oil paves way to revive expansion plan: With low oil prices reducing its operating costs, AirAsia chief executive Tan Sri Tony Fernandes said the budget carrier was ready to start expanding again in South-East Asia and was eyeing Vietnam and the Philippines. Fernandes said the pace of expansion would depend on securing approvals for new routes and airport access. - Reuters
PPB Group to submit plans to redevelop New World Park: PPB Group Bhd will submit plans before mid-2016 to redevelop the New World Park, a landmark heritage site in Penang, into a mixed development project. It is believed the group intends to build a 20-storey hotel-cum-serviced suites and a food and beverage centre. - StarBiz
UMW proposes aerospace hard metal park: The UMW group has proposed to set up an Aerospace Hard Metal Manufacturing Park in Serendah, Selangor, where it will site its manufacturing plant to produce fan cases for Rolls-Royce plc’s air- craft engines. UMW Holdings Bhd said the plant, to be built on 30 acres by its unit UMW Aerospace Sdn Bhd, would act as the anchor tenant. - StarBiz
BHIC unit gets contract extension: Boustead Heavy Industries Corporation Bhd (BHIC) subsidiary, BHIC Aeroservices Sdn Bhd, has secured an extension of contract for in-service support for six Royal Malaysian Navy Fennec AS555SN helicopters at a revised value of RM63.2mil. - StarBiz
SingPost sells nearly half its GDex stake to Yamato: Singapore Post Ltd (SingPost) has sold a 10% stake in local courier company GD Express Carrier Bhd (GDex) to Japan’s Yamato Asia Pte Ltd for RM239.1 million through an off-market transaction. The disposal brings the Singapore firm’s stake in GDex to 11.232%. SingPost made a gain of S$64 million (RM190.17 million) from the sale. - Edge FD
Sarawak Plantation’s Q4 earnings down 87.7%: Sarawak Plantation Bhd's fourth quarter net profit fall 87.7% to RM2.88 million, mainly due to a reversal of impairment losses in FY14. Revenue for the period dropped 6.08% to RM91.31 million. - Edge FD
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