Breakfast briefing: Monday, October 30

  • Business
  • Monday, 30 Oct 2017

The BoJ maintained its pledge of increasing base money, or cash and deposits at the central bank, at an annual pace of 60-70 trillion yen (US$547-US$638bil) via purchases of government bonds and risky assets, but is non-committal about expanding the stimulus - AFP Photo.

MarketWatch: Investors are increasingly pricing in the effect of a corporate tax cut into the shares of US companies, leaving the market primed for a steep sell-off if the Republican-controlled Congress fails to pass one of President Donald Trump’s top priorities. - Reuters


Top foreign stories


Exxon, Chevron results linked to oil price, not cost cuts: Rising oil and natural gas prices boosted third-quarter profits at Exxon Mobil Corp and Chevron Corp by about 50%, underscoring how reliant they remain on commodity markets for their financial futures than better technology or cost cuts. - Reuters


Kuroda looks favoured to get second term as BoJ chief: Bank of Japan governor Haruhiko Kuroda looks favoured to get a second five-year term when his current one ends in April, the Nikkei business paper reported. Following last week’s landside election win for Prime Minister Shinzo Abe’s ruling bloc, top advisers will discuss candidates for central bank chief, with Kuroda the “leading candidate”, the report said. - Reuters


China's Baidu teams up with Shouqi on driverless cars: Chinese search engine giant Baidu and Shouqi Limousine & Chauffeur, a car-hailing operator, are joining up to develop driverless vehicles, the official Xinhua media service said. Baidu will provide Shouqi with its Baidu Map service, while Shouqi will help Baidu develop high-precision maps for self-driving cars. - Reuters


HSH Nordbank privatization attracts private equity offers: The owners of Germany’s HSH Nordbank received binding offers from private equity groups Apollo, Cerberus and J.C. Flowers by a deadline on Friday as part of its EU-enforced privatisation, people close to the matter said. - Reuters


Top local stories


Budget proposals to lift property sector: Several measures in Budget 2018 are expected to boost the property sector, which has seen slow sales in the last few years. Besides adding more numbers to the list of affordable housing under the different agencies, for the first time in 60 years, the Government has proposed a 50% tax exemption on rental income not exceeding RM2,000 per month from the 2018 to 2020 assessment.- StarBiz


Bright prospects for stocks in four segments: Besides construction counters, stocks related to the consumer, logistics and manufacturing businesses are likely to benefit from Budget 2018. Analysts pointed out that the reduction in personal income taxes would boost private consumption and positively benefit consumer-driven counters on Bursa Malaysia. - StarBiz


VC firms must match funds to gain from RM1b allocation for tech startups: The RM1bil allocation for startups under Budget 2018 will be provided by large government-linked investment funds such as the Employees Provident Fund and the Retirement Fund Inc to venture capitalists on a matching basis. Sources familiar with the plans explained that registered venture capital firms would have to match their own funds with how much they wish to tap from the RM1bil fund. - StarBiz


Budget boost for three sectors: RHB Research says the Budget 2018 proposals offer a “mild boost to market sentiment.” It said “the proposals are clearly positive for the consumer and construction sectors, and mildly so for property.” - StarBiz


Perodua ‘cautiously optimistic’ of better sales in Q4: Perusahaan Otomobil Kedua Sdn Bhd (Perodua) “cautiously optimistic” of better sales in the fourth quarter on new initiatives, including launching a new vehicle as well as aggressive campaigns to sell its existing car models by the end of the year. Perodua is maintaining its sales target of 202,000 units this year. - StarBiz


Guocoland seeks to beef up land-bank: Guocoland (M) Bhd, the property arm of Hong Leong Group, wants to beef up its land-bank in Greater Kuala Lumpur to become a renowned property company and brand in the next five years, says group managing director Datuk Edmund Kong. - StarBiz


Cheaper cross-border money transfers: MoneyMatch Sdn Bhd has launched its “Transfer” portal, a fully digital cross border remittance service offering exchange rates and fees far cheaper than incumbent banks. The portal allows users to conduct their entire transactions online via the MoneyMatch mobile app and the web platform. - StarBiz

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