HONG KONG (Reuters) - Asian stocks fell more than 2 percent on Thursday to two-week lows as investors dumped financial shares on credit fears, while a weak dollar undermined some of the region's top exporters.
Oil fell below $95.70 as stock market losses and fears that the U.S. economy will be hurt by the credit problems spurred investors to lock in profits from a rally that had driven U.S. crude to a record high of $98.62 just a day ago.
The pullback in oil helped cool the surge in gold which peaked at a 28-year high of $845.40 on Wednesday, near its all-time high of $850 reached in January 1980. Spot gold was trading at about $833 an ounce by 3:05 a.m. British time.
The equity sell-off began on Wall Street on news of a probe of the U.S. home loan industry by New York's attorney general and after top U.S. savings and loans firm Washington Mutual warned the housing downturn would extend well into next year.
"There's going to be some ugly days in the U.S. (market). Fairly large losses have been recorded and the markets are saying they want visibility on all these losses and the banks need to come clean on it," said Paul Xiradis, chief executive of boutique fund Ausbil Dexia.
Tokyo's Nikkei average ended the morning session down 2.3 percent at eight-week lows, wiping out all the gains since the U.S. Federal Reserve's 50 basis point rate cut on Sept 18.
MSCI's measure of other Asia Pacific stocks fell 2.5 percent to levels last seen on October 25 and was down nearly 6 percent from the November 1 record high.
"The market is now moving to price in an expected weak opening in New York after results from AIG and Cisco Systems," said Tsuyoshi Segawa, equity strategist at Shinko Securities.
AIG posted disappointing quarterly results after U.S. markets closed on Wednesday, while Cisco Systems' solid results were overshadowed by a cautious outlook. and
Investors scurried to the relative safety of government bonds, fuelling a slide in yields. Japan's benchmark 10-year government bond yield fell as much as 1.5 basis points to a seven-week low of 1.545 percent.
BANKS, EXPORTERS DOWN
General Motors added to stock investors' gloom with its biggest quarterly loss due in part to a deeper-than-expected loss at former finance subsidiary GMAC.
Bank stocks were hardest hit, with Australia's ANZ Banking Group down 5 percent, Japan's Mitsubishi UFJ falling 3.3 percent and Citigroup sliding 5.2 percent.
Exporters were also hammered after the dollar tumbled to a record low against the euro and a basket of major currencies overnight. A weak dollar tends to hurt the value of overseas sales for these exporters.
Japan's Sony Corp, Honda Motor and Samsung Electronics all lost more than 3 percent.
Even Toyota, which posted a 2.7 percent rise in quarterly operating profit and nudged up its full-year forecasts on Wednesday, was not spared, falling 3.4 percent.
Major markets in the region were all down between 1 percent to 3 percent. Singapore and Malaysia were closed for the Deepavali public holiday.
DOLLAR SHAKY
The dollar edged up from a record low against a basket of currencies and the euro but remained under pressure after downbeat corporate news from major U.S. firms such as General Motors.
"Losses at such a major company as GM raises concerns the credit-related woes will affect consumer sentiment and hurt the economy," said a dealer at a large Japanese bank.
Comments from a Chinese official on Wednesday had stoked fears the central bank of the world's fourth-largest economy would reduce its holdings of U.S. assets, sending the dollar diving.
The euro traded at $1.4644, not far off an all-time high of about $1.4730 set overnight and it was at 165.32 yen recovering from a fall to near 164 yen earlier.
Against the Japanese currency, the dollar fetched nearly 113 yen, after a brief dip below 112 yen early in the session.
Investors tend to sell low-yielding currencies such as the yen to fund purchases of higher-yielding assets, but unwind those trades in times of heightened risk aversion.
Markets are now waiting for any soothing comments from Federal Reserve Chairman Ben Bernanke, who is due to testify on the U.S. economic outlook before the congressional Joint Economic Committee at 3 p.m. British time.
Wednesday, November 7, 2007
Credit worries hit global stocks
Wednesday, October 10, 2007
Plus One eCash Prepaid Card From RHB Bank
Style & Convenience
Introducing RHB Bank’s latest product, the PlusOne eCash Prepaid card, a stored-value card for anyone above 12 years old, with a spending limit based upon the amount loaded into the card.
Although the usage of this card is similar to a credit card, the difference lies in:
No credit checks:
Anyone can apply*
Only IC/MyKad or passport required
Having a lower age limit:
To budget your child’s monthly spending
As a financial education tool
For transferring cash to students overseas
Having to reload cash prior to spending:
Enabling budget control
Debt free
Less fraud
As the PlusOne eCash Prepaid card is another collaborative effort between RHB Bank and Senheng Electric, Malaysia’s largest electrical retail chain, it comes packed with benefits at Senheng/senQ such as:
Earning 1% PlusOne Ringgit for all purchases
Enjoying an additional 1 year warranty for all products
On the spot redemption of any product
And many more!
Eligibility :
Anyone 12 years and above.
Documents Required
Front copy of your IC/MyKad or Passport.
Starter packs only available at Senheng/senQ, so grab one from your nearest outlet today! For more information, call 03 9206 8118 for Peninsular Malaysia, 082 276 118 (Sabah & Sarawak)
*Registration form to be completed.
Get the eCash starter pack from SengHeng or SenQ outlets
Hong Kong aims to become Islamic finance hub
HONG KONG (AFP) - Hong Kong's chief executive said Wednesday the city would look to emulate Malaysia and Singapore as a centre for Islamic finance, in an effort to grab a slice of the thriving market.
In his annual policy address, Donald Tsang said providing financial products that comply with Islamic law "offers huge potential for development."
"To further consolidate Hong Kong's position as a global financial centre, we should actively leverage on this new trend by developing an Islamic financial platform in Hong Kong," Tsang told legislators.
"Apart from stepping up our efforts to promote Hong Kong's financial services to major Islamic countries and regions, we will focus on developing an Islamic bond market."
Tsang said the city's Monetary Authority was now working with the financial sector to develop products that complied with Islamic finance's strict rules, where interest payments and profits earned from alcohol, pornography, pork or gambling are all banned.
Since Muslim-dominated Malaysia's first issuance of sovereign global Islamic bonds in 2002, there has been a series of other issuances by countries such as a United Arab Emirates, Qatar, Bahrain and Pakistan.
Malaysia retains the world's largest Islamic bond market, accounting for about 47 billion US dollars or two-thirds of total Islamic bonds outstanding worldwide.
Singapore has also pushed to establish itself as an Islamic banking centre.
Hong Kong could also face competition from former colonial power Britain, where Lloyds TSB became the country's first high-street bank to provide services compatible with Islamic Sharia law, following the establishment of the Islamic Bank of Britain (IBB).
Maybank2u.com - Interbank Fund Transfer limit increased to RM5000 daily
Funds Transfer
There is no need to write a cheque each time you want to transfer funds. With Maybank2u.com, you can transfer up to maximum RM5,000 online per day to savings and current accounts in Maybank as well as to 17 other banks and financial institutions.
Monday, September 17, 2007
UK Best Students Banks
It's official: students are revolting. Come between them and the bare necessities of life and you are sure to come off worst. There are three things which are crucial to every student. I'm talking beer, bonking and bank account.
So when (Advertisement)
high street giant HSBC slapped huge charges on student overdrafts, the reaction was anything but bookish. The overdrafts - previously interest-free for students graduating this summer - were suddenly bumped up to 9.9% APR.
More than 5,000 students joined a campaign organised by the National Union of Students using networking website Facebook. The group called 'Stop the great HSBC graduate rip-off' argued that the bank should reverse its decision to stop the free graduate overdrafts and it seems their persistence and timing - just as the bank is hoping to snare new students at the start of term time - paid off. The bank has frozen plans to charge for the overdrafts and will refund any charges made, saying it was not too big to listen to its customers.
The NUS set up the protest site because it felt HSBC had reneged on the banking deal offered to students. It gave them accounts on the basis that they could have an interest-free overdraft of up to £1,500 for three years, reducing the facility by £500 a year. Then in July it informed customers that it would be charging this year's graduates for those overdrafts unless they paid a £9.95 monthly fee. The move would have cost a graduate who had the maximum overdraft of £1,500 nearly £12 a month, or more than £142 a year.
It is smart of HSBC to back down; the bad publicity over this would ultimately have cost them far more than the profit they might have made from the overdraft interest. As it is they returned forecast-beating profits of £7billion for the first six months of this year alone.
University challenge
It is easy to understand why the student bank account market is a lucrative one. Catch them early and you could have a customer for life, and certainly one for a few years while they pay off loans and debt. With thousands of students heading off to university this autumn, it is crucial that they start thinking about finding a student bank account that offers the best value and not be lured in by freebies.
Each year banks try and entice new students to open accounts by offering goodies, like free cinema tickets and discounted CDs. However, students who will need an overdraft to help pay for their time at university should look at the interest-free limits offered by accounts and not these 'free' gimmicks.
"Halifax's account offers the best interest-free overdraft limit of up to £2,750 each year," says Mike Naylor, personal finance expert at uSwitch.com ."RBS offers an interest-free overdraft facility of up to £2,500 per year," he continues. "Students lucky enough to have money in their account during their student years should choose an account with a good credit interest rate. For example, Smile offers students a credit interest rate of 3%, followed by Halifax's 2%. At the other end of the scale Lloyds TSB pays its students just 0.10%"
"Lloyds TSB has the most attractive 'free' gifts worth up to £299. This includes up to £150 of cash if money is paid in three times and the account stays in credit for a year, as well as a free NUS card, and mobile phone insurance. However, the price of this 'generosity' is a paltry 0.1% on money in the account. NatWest offers students a practical 'freebie' in the shape of a 5 year railcard worth £100, but also pays just 0.1% credit interest," says Naylor.
Muslim students don't need to worry about interest at all - and now they have the chance to open a special Islamic Student Account which has just been launched by Lloyds TSB. The 'Islamic Student Account' is the first of its kind in the UK and means that Muslims studying here will now be able to manage their money without compromising their faith. According to Islamic law (Shariah), customers cannot pay or receive interest (Riba) on their money and deposits held in accounts cannot be invested in certain industries, such as gambling or alcohol. However, students who open the account will receive all the benefits of the bank's standard student account, including an interest free overdraft of £1,500 for three years, rising to £2,000 for those on longer courses. They will also receive a free iPod Shuffle and one year's free Youth Hostel Association (YHA) membership.
Best buys
Here is a look at what is on offer in the student bank account market for 2007/08
Company | Credit | Interest Free | Auth | Unauth |
Abbey The Abbey Account (Student) | 1.49% | Year 1 £1000 | Nil | £20 state perd |
Barclays Bank Student Additions | 0.10% | Year 1 up to £1000 | Nil | Nil |
Clydesdale Bank Student Account | 3.25% | None | Nil | Nil |
Co-operative Bank Student | - | Year 1 £1400 | Nil | Nil |
HSBC Student Service | 0.10% | Year 1 up to £1000 | Nil | - |
Halifax Student | 2.00% | Year 1 up to £2750 | Nil | £28 pm |
Lloyds TSB Student | 0.10% | Year 1 £1500 | Nil | £30 per day |
NatWest Student | 0.10% | Year 1 up to £1250 | Nil | Nil |
Royal Bank of Scotland Student Royalties | 2.00% | Year 1 up to £2500 | - | £10 pm |
Smile Student Account | 3.00% | Year 1 £1000 | Nil | £5 pm |
Yorkshire Bank Student Account | 3.25% | None | Nil | Nil |
Source: Moneyfacts.co.uk Information correct as at 15 August 2007
Sources : Yahoo Biz
Friday, September 14, 2007
Bank of America wins US approval for LaSalle takeover
WASHINGTON (AFP) - The Federal Reserve on Friday approved Bank of America's purchase of LaSalle Bank, a US unit of the Dutch bank ABN Amro, which will expand the reach of the second largest US banking group.
After the Fed announced its approval, Bank of America said it hopes to close the 21-billion-dollar acquisition in early October, noting that the decision marked the final regulatory approval needed for the transaction.
The action followed a decision by the Netherlands' supreme court on July 13 authorizing ABN Amro to sell LaSalle.
ABN Amro wanted to sell its US unit to BoA without asking for shareholders' approval as part of its agreement to be bought by British bank Barclays.
ABN remains the object of a bidding war with a European banking consortium led by Royal Bank of Scotland offering a rival bid.
The Bank of America purchase will add LaSalle Bank's approximately 17,000 commercial banking clients, 1.4 million retail customers, 411 banking centers and 1,500 teller machines in the Chicago area, Michigan and Indiana, Bank of America said.
"We see a compelling opportunity to enhance and deepen relationships with LaSalle's consumer, commercial, corporate, private banking and wealth management customers," said Bank of America chairman and chief executive Kenneth Lewis.
Sources : Yahoo Finance
Friday, September 7, 2007
Budget 2008 Highlights: Business
The following are the highlights of the 2008 Budget for the business sector:
A single-tier tax system will be implemented from 2008 to improve the efficiency and simplify the adminstration of corporate tax.
Under the single-tier tax system, profits are only taxed at the company’s level and dividends received are exempted from tax.
A six-year transition period will be provided to ensure smooth implementation of the single-tier system.
A further reduction of corporate tax to 25 percent will be implemented in 2009. Corporate tax in 2008 is at 26 percent.
Effective January 1, 2008, private valuation will be allowed for purposes of assessment in stamp duty payment, for the transfer of properties.
Effective January 1, 2008, Customs Department will merge 16 customs forms into four.
Public Companies Accounting Oversight Board to be established under the auspices of the Securities Commission to monitor auditors of public companies.
Code of Corporate Governance being reviewed to improve quality of boards of public listed companies.
Companies with high standards of corporate governance and market conduct will be accorded green lane status, which includes shorter time frame for processing of corporate proposals and longer period of licensing.
Stamp duty exemption on instruments related to mergers and acquisitions of PLCs will be extended to December 31, 2010.
Petronas’s over 1,000 vendors told to merge to be more competitive globally. Stamp duty exemption to be given on all instruments relating to mergers of such vendors implemented by December 31, 2010.
Foreign ownership on fund management companies and REITs management companies will be allowed up to 70 percent with minimum Bumiputera ownership requirement remaining at 30 percent.
Commission rates for internet trading and cash upfront transactions will be fully negotiable to reduce cost of transactions in share investment by retail investors.
Clearing fees to be reduced to 0.03 percent from 0.04 percent, with maximum fee of RM1,000.
Minimum broking charges per transaction is fixed at RM40.
Islamic fund management companies will be allowed to be wholly owned by foreigners.
A RM7 billion fund will be channelled by EPF to be managed by Islamic fund management companies.
Islamic fund management companies will be allowed to invest all assets abroad.
Income tax exemption until 2016 will be given to fund management companies on all fees received in respect of Islamic fund management activities.
To attract greater middle eastern investments, tax incentives will be provided for existing stockbroking companies to set up Islamic stockbroking subsidiaries.
Three new stockbroking licenses to be issued to leading stockbroking companies that are able to source and intermediate business and order flows from the Middle East.
To further promote the Takaful industry, several tax treatment will be enhanced, including tax cut on the share of distributed profits.
Labuan Offshore companies to be given option to be taxe under the Income Tax Act 1967.
A 50 percent stamp duty exemption to be given on documents of transfer for the purchase of one house, of not more than RM250,000 per unit.
RM400 million initial fund has been earmarked by Pelaburan Hartanah Bumiputera Bhd to increase Bumiputera property investment in Iskandar Development Region (IDR).
Government to provide additional RM100 million for investments in healthcare services related projects in IDR.
SMEs will be given a two-year flexibility to pay taxes at the end of financial year instead of monthly instalments.
Last mile network facilities providers will be given investment allowance of 100 percent on capital expenditure incurred for broadband up to December 31, 2010.
Import duty and sales tax exemptions will be given on broadband equipment and consumer access devices.
RM12 billion will be spent, over the next four years, to improve public transportation system in Kuala Lumpur and Penang.
Penang Outer Ring Road Project will be implemented on a tender basis shortly.
The East Coast Economic Region, the Sabah Corridor and the Sarawak Corridor will be launched soon.
To eradicate hard core poverty, RM214 million will be allocated for Skim Pembangunan Kesejahteraan Rakyat; and RM117 million for Program Pengurangan Kemiskinan and Program Lonjakan Mega.
RM680 million to be provided for the construction of rural and village roads, RM462 million for rural water and electricity suppply projects, RM70 million for social amenities, and RM15 million for ICT education in rural areas.
Malaysian Communications and Multimedia Commission (MCMC) allocates RM45 million for the implementation of SchoolNet project to provide internet services to schools.
RM13 billion allocated for improving the quality of hospital services, purchasing medical supply and health equipment.
Ulu Kinta Allied Health Science College, Kuala Pilah Nursing College, Kluang Hospital, Tampin Hospital, Cheras Rehabilitation Hospital and Kuala Lumpur Women and Children Hospital will be constructed in 2008.
Pioneer status of 100 percent or investment tax allowance of 60 percent for five years will be given to companies undertaking investments in laboratories of international standards for testing of medical devices.
In efforts to inculcate corporate social responsibility (CSR), public limited companies (PLCs) will have to disclose their employment composition by race and gender, as well as programmes undertaken to develop domestic and bumiputera vendors.
Government will support efforts to set up a CSR Fund with an initial sum of RM50 million, to be used to jointly finance selected CSR projects.
RM9.7 billion to be allocated for various types of maintenance works.
RM176.9 billion to be allocated for 2008 Budget, up 10.9 percent from 2007, of which RM128.8 billion is for operating expenditure and RM48.1 billion is for development expenditure.
RM64 billion or 49.6 percent of operating expenditure is for fixed charges and grants, RM36.2 billion is for emoluments, RM25.5 billion for supplies an services, RM2.1 billion for purchase of assets and RM1.13 million for other expenditures.
The largest allocation for development expenditure at RM20.6 billion is for the agriculture, industry and infrastructure sectors; RM15.6 billion is for education, health and housing sectors; RM7.0 billion for security sector; RM2.9 billion for administration; and RM2.0 billion for contigencies.
The government expects to reduce its fiscal deficit to 3.2 percent of GDP in 2007 from 3.3 percent in 2006.
Fiscal deficit to be reduced further to 3.1 percent in 2008.
Economic growth in 2008 is projected at between 6.0-6.5 percent.
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