The city of LA is accusing Wells Fago of predatory lending practices that targeted minority borrowers and led to the loss of property tax revenue, and the US District Court on Wednesday ruled that the city's claims were adequate for the case to proceed - Reuters Photo.
MarketWrap: Major US stock indexes climbed again on Thursday and set fresh record highs as a month-long rally following the presidential election of Donald Trump rolled on. Investors have driven up equities since Trump's Nov 8 election over optimism about domestic economic stimulus and reduced corporate taxes and regulations. - Reuters
The DJIA rose 65.19 points, or 0.33%, to 19,614.81, the S&P 500 gained 4.84 points, or 0.22%, to 2,246.19 and the Nasdaq added 23.59 points, or 0.44 percent, to 5,417.36.
Forex summary
*The ringgit gained 0.25% to 4.4210 per US$
*It was 1.60% higher at 4.6958 per euro
*Up 0.71% to 5.5648 per pound sterling
*Up 0.48% to 3.1073 per Singapore dollar
*0.64% higher to 3.2959 per Aussie
*0.15% higher at 3.8724 per 100 yen
Energy
Oil rebounded from the week's lows to close above US$50 a barrel on Thursday, on growing optimism that non-Opec producers might agree to cut output following a cartel agreement to limit production. Brent LCOc1 settled up 89 cents, or 1.7%, at US$53.89 a barrel. - Reuters
Top foreign stories
Wells Fargo picks four directors for sales scandal probe: Wells Fargo & Co chairman Stephen Sanger and vice-chair Elizabeth Duke have been named to a four-member committee that will lead an internal investigation into the bank's recent sales scandal, a person familiar with the matter said on Thursday. - Reuters
US derivatives regulator to move on from Dodd-Frank under Trump: The US derivatives regulator will move on from reforms created in the wake of the 2007-09 financial crisis to a new focus on US competitiveness and the potential for shocks to the global US$710 trillion swaps markets under President-elect Donald Trump. - Reuters
Saudi Arabia tells oil buyers of cuts after Opec deal, PIRA says: Saudi Arabia is informing its customers of cuts to their January crude oil supplies to comply with the latest Opec agreement, according to a PIRA note late on Thursday. The note adds that cuts will be to varying degrees, but is likely to be larger to North America due to lower margins. - Reuters
Lower for longer, ECB scales back asset buys: The European Central Bank trimmed back its asset buys in a surprise move on Thursday but promised protracted stimulus to aid a still fragile recovery, and dismissed any talk of tapering the programme away. - Reuters
CEO: Orange would consider bid for Vivendi's pay-TV if for sale: France's Orange would consider bidding for Vivendi's pay-TV Canal Plus if it came up for sale, chief executive officer Stephane Richard said on Thursday. The former telecoms monopoly is keen on forming a closer alliance with Canal Plus, Richard added, without elaborating. - Reuters
Top local stories
Jho Low family dealt setback in move to claim assets in 1MDB probe: Relatives of Low Taek Jho at the centre of the 1MDB fund scandal were dealt a setback in their efforts to claim assets seized by the US government when a federal judge denied a motion that would have given them time to try their luck in overseas courts. - Reuters
Splash deal in sight: After nearly a year of negotiations, the Selangor government is likely to complete the takeover of Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash) following new valuations of the water concessionaire. A Splash shareholder said the Federal Government and Selangor government are likely to agree to a fair value of Splash and the outcome could be known by next month. - StarBiz
Bermaz Auto profit falls as ringgit weakens: Bermaz Auto Bhd (BAuto)’s net profit fell 42.3% to RM30.6mil for the second quarter from RM53.1mil a year earlier. Its revenue was down 12.8% to RM473.2mil on lower sales volume recorded by its Malaysian operations amid softer demand for passenger cars. - StarBiz
Govt calls on palm oil firms to be ‘price makers’: The Government is urging local palm oil companies to go downstream and become “price makers” by embracing science, technology and innovation to reap the rewards of the sector. Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong said the commodities sector was far from being a “sunset industry.” - StarBiz
Eco World brand gross sales hit RM6b: The Eco World brand registered total sales of RM6.07bil worth of properties in the financial year ended October 2016 through its offerings in both Malaysia and international markets. Of the amount, the effective sales share attributed to Eco World Development Group Bhd
amounted to about RM4bil. - StarBiz
Eco World International in talks to jointly redevelop Guoco’s assets in London: Eco World International Bhd, which is on track to list on Bursa Malaysia’s Main Market by March next year, is in talks with tycoon Tan Sri Quek Leng Chan’s Guoco Group Ltd to jointly redevelop some assets the latter owns in London. - Edge FD
Former MDs increase stake in Mudajaya: Mudajaya Group Bhd’s former managing directors Ng Ying Loong and Anto Joseph have raised their stake in the power plant builder. Through their company Dataran Sentral (M) Sdn Bhd they now own 20.5% of Mudajaya. - StarBiz
Exporters’ reluctance to convert proceeds to ringgit causes imbalances: Exporters’ reluctance to convert their foreign currency proceeds to ringgit contributed to the “severe imbalances” in the domestic foreign exchange market. This, Bank Negara said, was a factor in driving the sharp swings in the ringgit exchange rate. - StarBiz
‘Significant challenges’ to persist in O&G industry: Spending cuts by oil majors will continue to pose “significant” challenges” for the oil and gas industry, says SapuraKencana Petroleum Bhd. As the number of contracts dwindle, it said, intense competition would cause the industry to face margin pressures well into next year. - StarBiz
MRCB-Quill REIT to raise RM488m: MRCB-Quill REIT is expected to raise RM487.942mil in gross proceeds from the proposed placement of 406.619 million new shares at RM1.20 apiece. - Bernama
RCEP negotiations likely to be substantially concluded by end-2017: The Regional Comprehensive Economic Partnership (RCEP) negotiations will likely be substantially concluded by the end of next year, after several extensions of the deadline to conclude talks on the trade pact, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed. - StarBiz
Foreign reserves to come under pressure: After a decline in the latest foreign reserve figures for November, Malaysia’s foreign reserves are expected to come under pressure this month and in the first quarter of next year due to potential risk of portfolio capital outflows, say forex analysts and dealers. - StarBiz
Mavcap aims to set up RM2b investment funds: Malaysia Venture Capital Management Bhd (Mavcap) has signed memoranda of understanding with two international venture capital firms to set up investment funds of up to US$450mil (RM2bil). - StarBiz
Wilmar unit raided by South Africa’s competition commission: Wilmar International Ltd confirmed on Thursday that a search and seizure operation was conducted by the Competition Commission of South Africa on the premises of its South African subsidiary Wilmar Continental Edible Oils and Fats (Pty) Ltd. - Edge FD
Gamuda MD unaware Penang TMP now costs RM46b: Gamuda Bhd group managing director Da- tuk Lin Yun Ling said he is unaware of the reported ballooning of costs of the Penang Transport Master Plan (TMP) from its original RM27 billion to more than RM40 billion. “The RM40 billion is new to me. As far as we know, it shouldn’t vary too much from the earlier figure,” he said after Gamuda’s AGM on Thursday. - Edge FD
Digistar to consider dividend payout after receiving RM66m: Digistar Corp Bhd will consider a dividend payout after receiving a lump sum payment from the works ministry by July next year. The payment is in relation to the construction of the Malaysian National Technology Advancement Centre in Alor Gajah, Malacca. - Edge FD
Mycron considering US, UK as export markets: Mycron Steel Bhd said it is assessing new markets to export its steel tube products, and is considering the UK, US and emerging countries as potential export destinations, says group executive chairman Tunku Datuk Yaacob. - Edge FD
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