MarketWatch: Investors who were bloodied in the year-opening stock rout will be hard pressed to find any salve next week. With prospects dimming for a strong start to earnings season, and worries about slow growth in China continuing to overhang the market, even a price-driven rally may not last beyond a day or three, say longtime market watchers.
* Wall Street faces profit recession as earnings season begins: Wall Street's fourth-quarter earnings season that gets under way next week could confirm something many investors may not want to hear: the US economy may be doing well but corporate profits are in a recession. An earnings recession - two quarters of declining profits - would be led by the usual suspects, energy and materials companies. But its severity may depend on consumer discretionary companies, which have been warning about profits at an unusual pace. - Reuters
Top foreign stories
VW proposes catalytic converter to fix US test cheating cars: Volkswagen engineers have come up with a catalytic converter that could be fitted to around 430,000 cars in the United States as a fix for vehicles capable of cheating emissions tests, German daily Bild am Sonntag reported. - Reuters
With luxury Acura makeover, Honda aims for brand survival, China revival: As part of a broader makeover, and even the survival, of its stalled luxury Acura brand, Japan's Honda Motor Co will launch a new small crossover sport-utility vehicle this year in China to compete with BMW and Audi in the world's biggest car market, two individuals closely involved in the effort said. - Reuters
Ever so slowly, the eurozone economy awakes: Very slowly - and primarily because of massive stimulus from the European Central Bank - the eurozone is showing signs of recovery. It is a dawn that policymakers are struggling to nurture into broad daylight. Economic growth was running at an annual rate of 1.6 percent in the third quarter. It is roughly twice the average annual growth rate between 2003 and 2014. - Reuters
Banco do Brasil, Bradesco in Citigroup venture talks: Brazilian lenders Banco Bradesco and Banco do Brasil are in talks to buy Citigroup's stake in a credit card processing joint venture with Elavon Inc, a source said. The acquisition could be closed next month by Bradesco and Banco do Brasil's holding company Elo Participações, the source said. - Reuters
Top local stories
Solace in bauxite mining moratorium: The three-month moratorium on all bauxite mining activities in Pahang is beneficial for producers in the longer term as greater regularisation will help increase efficiency and reduce environmental hazards, according to industry experts. - StarBiz
Re-rating catalyst for WCT: The potential listing of WCT Holdings’ construction arm could be an upward re-rating catalyst for its share price if shareholders are rewarded with a special dividend, according to Affin Hwang Capital Research. It said the construction company remained one of its top country buys, and raised its target price to RM2.16 from RM1.84. - StarBiz
CAB bullish on exports: Poultry supplier CAB Cakaran
Corp Bhd expects its overseas venture and exports to generate about 50% of revenue in two years, in line with its strategy to diversify revenue base. Group managing director Chris Chuah said the group’s proposed business venture an integrated halal poultry farm in Indonesia with the Salim Group would be a key growth-driver. - StarBiz
Yen Global diversifying into telecoms: Apparel maker Yen Global Bhd is diversifying into the telecommunications following its acquisition of VLT Wholesale Sdn Bhd. Group executive director Lim Boon Hong said VLT’s core business as an international voice operator for mobile calls has the potential to grow into a significant contributor to he group in two years. - StarBiz
Minimal impact from oil price drop on Rapid: The current decline in global oil prices has had a minimal impact on the Refinery and Petrochemical Integrated Development (Rapid) project in Pengerang, Johor. The project was progressing according to schedule, with 17% of the venture ready to date, said Johor Mentri Besar Datuk Seri Mohamed Khaled Nordin. - Bernama
SCIB to spend RM6mil on new factory: Sarawak Consolidated Industries Bhd (SCIB) will invest some RM6mil in a new factory to produce specific pre- cast concrete products for the Pan Borneo Highway project. - StarBiz
Govt committed to 3.1% deficit target: Prime Minister Datuk Seri Najib Razak’s announcement on Friday that Budget 2016 will be recalibrated to reflect the current economic climate would still see the government maintain its gross domestic product (GDP) growth forecast of 4% to 5%, and a fiscal deficit target of 3.1% of GDP in 2016. Najib will chair a Fiscal Policy Committee meeting this month to discuss adjustments to Budget 2016. - Bernama
Slight delay in Penang undersea tunnel work: Consortium Zenith BUCG Sdn Bhd, the main contractor for the RM6.3 billion undersea tunnel project in Penang, will begin construction on June 15, slightly later than its original schedule. Chairman Datuk Zarul Ahmad Mohd Zulkifli said the consortium will first begin construction of the three highways before constructing the 7.2km undersea tunnel linking Penang island to the mainland. - Edge FD
Steel players relieved by failed move to impose safeguard duties: Local steel players heaved a sigh of relief as the government abandoned its safeguard investigation into imports of hot-rolled coils, as it emerged that the increase in imports was not enough to cause serious injury to the domestic industry. - Edge FD
Kobay sees half of revenue from property by 2020: Kobay Technology Bhd, a tool parts maker that moved into property development with its maiden project in Langkawi, Kedah last year, expects the new segment to contribute 50% of the group’s revenue by 2020, from almost nil now. - Edge FD
Limited time offer:
Just RM5 per month.
