COLLABORATIVE: SoftBank said it would have a 60% stake in the joint venture, with Alibaba and Taiwan-based Foxconn each spending 14.5bil yen (RM438.25mil) for 20% stakes.
MarketWatch: US stock investors may look to a host of results from consumer-facing companies including Wal-Mart Stores Inc this week for signs on whether the recent market rally has more room to run. - Reuters
Top foreign stories
Kraft withdraws US$143b offer to merge with Unilever: US food company Kraft Heinz Co withdrew its proposal for a US$143 billion merger with larger rival Unilever Plc, the companies said on Sunday, raising questions about whether Kraft could turn its focus to another target. - Reuters
Poll: Japan Inc signals boost to domestic capex but less keen on the US: One third of Japanese firms are looking to lift business investment at home in the next financial year, but companies are less bullish about capital spending in the United States due to uncertainty over the Trump administration's policies, a Reuters poll showed. - Reuters
SoftBank willing to cede control of Sprint to entice T-Mobile: Japan's SoftBank Group Corp is prepared to give up control of Sprint Corp to Deutsche Telekom AG's T-Mobile US Inc to clinch a merger of the two US wireless carriers, according to people familiar with the matter. - Reuters
Inbound China M&A takes flight on consumer promise: Overseas acquisitions by Chinese buyers are cooling after two record years as Beijing reins in capital outflows, but deals into China are on the rise, and new rules will make it easier for foreign buyers to tap China's giant consumer potential.
Inbound M&A deals have already reached US$7.1 billion so far in 2017 and are well on track to beat the 2016 total of US$46 billion, while outbound deals tumbled more than 40% to US$8.4 billion, Thomson Reuters data showed. - Reuters
Top local stories
EPF sees a better 2017: The Employees Provident Fund (EPF), which declared a 5.7% dividend, the lowest in seven years , expects a better year ahead on the back of a more stable ringgit and recovery in the global economy. The pension fund, with RM704.27bil to manage, feels that the global economic numbers coming out this year are better versus 2016 with more certainty in major economies such as the US and China. - StarBiz
More bond rating downgrades than upgrades likely this year: Corporate bond rating downgrades could still surpass upgrades this year amid uncer- tainties in the market. The sectors the most vulnerable, rating agencies said, are property and real estate, upstream oil and gas, and some infrastructure segments. - StarBiz
Sterling to Progress to hotel business: Loss-making information and communications technology (ICT) company Sterling Progress Bhd is venturing into hotel management. On Friday, the Ace Market-listed company announced it was buying into the business rights to the brand of T+ Hotel and Time Capsule Hotel for RM3.5mil from Tandop Hotel Sdn Bhd. - StarBiz
MRCB to replicate TOD model in other projects: Malaysian Resources Corp Bhd (MRCB) plans to use its success in developing a transit-oriented-development (TOD) in Kuala Lumpur as a template for the future at other locations. The developer of KL Sentral said other similar projects in the pipeline included PJ Sentral, Cyberjaya City Centre, the northern transport hub of Penang Sentral and Kwasa Sentral in Sungai Buloh. - StarBiz
CPO prices to drive Ta Ann FY17 earnings: Analysts expect the strong crude palm oil (CPO) prices to be the key growth driver of Ta Ann group’s financial year 2017 (FY17) results, as its timber business would likely remain lacklustre. For FY17 ending Dec 31, PublicInvest Research expects Ta Ann to post an estimated core net profit of RM139.3mil on revenue of RM1.07bil. - StarBiz
Minister announces DFTZ tax exemption: The purchase of goods via the Internet, or e-commerce, worth RM1,200 and below, will be exempted from paying tax in the Digital Free Trade Zone (DFTZ), says Second International Trade and Industry Minister Datuk Seri Ong Ka Chuan. - Bernama
Vitrox expects strong Q1: Semiconductor test equipment maker Vitrox Corp Bhd forecasts a better first-quarter performance, boosted by increased orders from automotive and smart device manufacturers. - StarBiz
Proton eyes bigger presence in Indonesia with launch of Iriz: Proton holdings Bhd chief executive Datuk Ahmad Fuad Kenali.says the launch of Iris in Indonesia was to test the market for compact cars there after several models, like Waja and Persona, had been in the indonesian market the past year. - Bernama
Analysts uncertain if run-up will be sustained: After a disappointing 2016, which saw analysts lower their target for the FBM KLCI, there is a more optimistic feeling about the prospects for 2017 after the benchmark index crossed the 1,700-point mark last week. The market’s run-up is in sync with regional and global markets, but will the uptrend be sustained? - Edge FD
Malaysia will be hit if China faces recession: While China’s macro cyclical movements affect the global economy as a whole, economists say Asian nations like Malaysia are expected to be more badly hit if China enters a recession. Malaysia’s vulnerability is evident as shown in a sensitivity analysis by Maybank Investment Bank Bhd where a one-percentage-point (ppt) drop in China’s gross domestic product (GDP) growth would knock 0.7ppt off Malaysia’s GDP growth. - Edge FD
Classic Scenic hikes capex to keep growth momentum: Classic Scenic Bhd
is putting aside over six times its average annual capital spend to speed up its organic growth by introducing more innovative and price-competitive products, and improve cost control. It has set capital expenditure for the current financial year ending Dec 31, 2017 at RM3 million. - Edge FD
Kim Loong eyes 20% rise in profit for FY18: Kim Loong Resources Bhd expects profit growth of about 20% in its current financial year ending Jan 31, 2018, on the back of improved crude palm oil (CPO) prices and better milling operations margins. - Edge FD
Investors prefer corporate sukuk to govt bonds: Global investment management group Franklin Templeton sees greater optimism among investors for sukuk issued by the Malaysian corporate sector compared to government bonds such as Malaysian Government Securities and Government Investment Issues, as the former are deemed to be less volatile. - Edge FD
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