Breakfast briefing: Monday, August 31 Monday, 31 August 2015

by **Cals** Mon 31 Aug 2015, 21:10

Breakfast briefing: Monday, August 31
Monday, 31 August 2015

MarketWatch: After a dizzying two weeks that saw a rapid plunge and rebound in equity prices, investors are looking forward to a week of economic data that may provide clarity on the likelihood of a near-term US interest rate hike and help tamp down the market's recent wild swings. The economic figures will culminate in Friday's jobs report that should reveal more about the strength of the US economy. Car sales, construction spending, the Federal Reserve's "beige book" and jobs growth may show the economy is strong enough to withstand the first rate hike in nearly a decade from the Federal Reserve, despite worries about a hard landing for China's economy. - Reuters

Top foreign news

World to Fed: We're prepared for US rate hike, so don't delay: Central bankers from around the world are telling their American counterparts that they are ready for a US interest rate hike and would prefer that the Federal Reserve make the move without further ado. In private and in public at last week's global central banking conference in Jackson Hole, the message from visiting policymakers was that the Fed has telegraphed an initial monetary tightening and, following a year-long rise in the dollar, financial markets globally are as ready as they can be. - Reuters

Chinese machinery makers' earnings take a hit: China's slowing economy has taken its toll on the first-half earnings of major construction machinery makers Zoomlion Heavy Industry Science and Technology Co Ltd and Sany Heavy Industry Co Ltd. Encouraged to expand after Beijing unleashed a US$644 billion stimulus package in 2008 during the global financial crisis, Chinese heavy equipment makers are stuck with a glut of unsold equipment and factories they do not need. In January-June, Zoomlion booked a 309.8 million yuan ($48.51 million) net loss, while Sany reported a 75.6% fall in net income to 334.8 million yuan for the same period. - Reuters

China fears linger as focus on Fed sharpens: Fears over the health of the Chinese economy kept world markets on edge last week and China country will remain in focus, along with the question of whether the Federal Reserve will raise interest rates next month. Those concerns sent world stocks, commodities and currencies on a roller-coaster ride last week, and purchasing manager surveys due on Tuesday are expected to show manufacturing contracted during August in the world's second-biggest economy. - Reuters

Top local stories

CapitaLand reviews strategy: Singapore-based CapitaLand Ltd, which is also South-East Asia’s largest real estate developer, is reviewing its RM8bil joint venture project in Danga Bay, Johor. “We have got the necessary approval from the authorities. We are now reviewing the details of the project with our JV partners,” said CapitaLand Commercial (M) Sdn Bhd managing director Lim Wie Shan. - StarBiz

Maybank seeks more revenue from overseas: Malayan Banking Bhd (Maybank) aims to increase its corporate banking services across the region, as the group targets to boost income contribution from overseas. Global banking business currently contributes less than 30% to group’s revenue. “We’ve been relying too much on our traditional markets which is Malaysia and Singapore,” head of global banking Amirul Feisal Wan Zahir said. “We need to expand our business." - StarBiz

Volatile market boon for equity growth fund: Volatile markets may just be what an equity growth fund that concentrates on environmental, social and governance (ESG) issues need to capture investments. VCAP Asset Managers Sdn Bhd (VCAM), an asset management unit of ValueCap Sdn Bhd, a government-owned fund management company, believes that volatile market conditions creates opportunities for such funds to grow. VCAM chief executive officer Shan Kamahl Mohammad said globally, ESG funds have about US$21.4 trillion of assets under management. - StarBiz

Boon Koon plans to launch own brand superbikes: Truck maker Boon Koon Group Bhd plans to launch its own range of superbikes, with commercial production expected to start in the first quarter of 2016. “We plan to produce 3,000 units for the local and regional market,” group executive chairman Datuk Goh Boon Koon said, adding .Boon Koon is partnering a China company for the super bike project. The bikes will be built using German technology. - StarBiz

Public Mutual declares RM185m distributions for 11 funds: Public Bank unit Public Mutual declared distributions totalling more than RM185mil for 11 funds ranging from 0.3 sen to six sen per unit. The company, which managed RM64.7bil of funds as at end-June 2015, said the total gross distributions for the 11 funds were for the financial year ending Aug 31. - StarBiz