Khamis, 7 Mac 2013

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Business Times : latesthttp://www.btimes.com.my enFriday, March 08, 2013, 09.37 AMScomi jumps on RM2.1b O&G contracthttp://www.btimes.com.my/articles/20130308100722/Article/ http://www.btimes.com.my/articles/20130308100722/Article/Fri, 08 Mar 2013 10:07:22 +0800Shares of Scomi Group Bhd rose as much as 10.6 per cent after the company secured a RM2.1 billion contract to provide drilling fluids and barites materials, equipment and services to Petronas Carigali Sdn Bhd. As of 9.17am, shares of the Malaysian oilfield services and energy logistics company were up 9.09 per cent at 36 sen, outperforming the benchmark stock index's 0.16 per cent rise. It is the most active stock in the local bourse. "The award of the tender... is expected to contribute positively towards the earnings and net assets per share of the company for the financial years ending March 31, 2013 to 2018," Scomi said in a local stock filing on Thursday evening. Petronas Carigali is a unit of Malaysia's state oil firm Petroliam Nasional Bhd, which finances nearly half of the Southeast Asia nation's government budget.-- Reuters Ringgit snaps two-day losshttp://www.btimes.com.my/articles/20130308102125/Article/ http://www.btimes.com.my/articles/20130308102125/Article/Fri, 08 Mar 2013 10:21:25 +0800Malaysia's ringgit rose for the first time in three days as signs the global economy is improving brightened the outlook for exports and spurred demand for riskier assets, helping emerging markets attract funds. The MSCI Asia Pacific Index of stocks reversed yesterday's losses after Japan's economy returned to growth and initial jobless claims in the US unexpectedly dropped. The two countries are Malaysia's third and fourth-biggest export markets, respectively. The Southeast Asian nation's central bank kept its benchmark interest rate at three per cent yesterday, a decision that was predicted by all 20 economists in a Bloomberg survey. The ringgit appreciated 0.1 per cent to 3.1053 per dollar as of 9:29am in Kuala Lumpur, paring the week's decline to 0.3 per cent, according to data compiled by Bloomberg. The currency touched 3.0945 today, the strongest since March 1. One-month implied volatility, a measure of expected moves in exchange- rates used to price options, increased one basis point, or 0.01 percentage point, to 6.67 per cent. "The Malaysian currency is getting interest because its growth prospects are good given the recovery in Japan and the US," said Yeah Kim Leng, chief economist at RAM Holdings Bhd in Kuala Lumpur. "The ringgit should continue to strengthen." Japan's gross domestic product rose an annualised 0.2 per cent in the three months through December, the Cabinet Office said today, compared with a preliminary calculation of a 0.4 per cent contraction. Jobless claims in the US fell to 340,000 for the week ended March 2, the Labor Department said in Washington yesterday. That was less than the median estimate of 355,000 in a Bloomberg survey of 50 economists. Malaysian government bonds advanced this week. The yield on the 3.418 per cent notes due August 2022 fell one basis point to 3.46 per cent, according to data compiled by Bloomberg. The rate was little changed today.-- Bloomberg Billionaire Icahn demands Dell pay US$16bhttp://www.btimes.com.my/articles/20130308104337/Article/ http://www.btimes.com.my/articles/20130308104337/Article/Fri, 08 Mar 2013 10:43:37 +0800Activist investor Carl Icahn is demanding Dell Inc pay out US$15.7 billion in special dividends, joining a growing chorus of opposition to founder Michael Dell's plan to take the world's No. 3 personal computer (PC) maker private. The billionaire investor, whose arrival on the scene typically puts companies on guard, wants the PC maker to pay US$9 a share in dividends immediately from its own cash and from raising new debt. Icahn, who has a reputation for demanding aggressive changes after amassing stakes in companies, argued in a letter to the company's board published on Thursday that Michael Dell's and Silver Lake's proposed US$24.4 billion buyout short-changed shareholders, undervalued the company and benefited mainly the company co-founder himself. "We see no reason that the future value of Dell should not accrue to all the existing Dell shareholders - not just Michael Dell," Icahn wrote in the letter, which Dell disclosed in a filing. Icahn's proposed special dividend of US$9 per share would include US$4.26 a share derived from US$5.25 billion in new debt. He argued that, combined with a "stub" value of US$13.81 per share that his firm calculated based on discounted cash flow, such a move would deliver shareholders a total value of US$22.81 per share. That would be a 67 per cent premium to the US$13.65 buyout price put forward by Michael Dell in partnership with private equity house Silver Lake and Microsoft Corp. In his letter, Icahn asked Dell's board to commit to his proposal to "avoid a proxy fight." He also wants Dell to combine an upcoming special shareholder vote on the buyout deal with its regular annual general meeting, when Icahn said he intended to put forward a slate of his own directors for election to the board. "If you fail to agree promptly to combine the vote ..., we anticipate years of litigation will follow challenging the transaction and the actions of the directors that participated in it," Icahn said in the letter. To speed up the payment of a special dividend, Icahn himself pledged to provide a US$3.25 billion bridge loan to Dell, if necessary. Icahn joins other major investors opposed to the deal. Excluding the activist investor, who has not disclosed his stake, shareholders representing almost 18 per cent of Dell shares, led by Southeastern Asset Management with a stake of more than 8 per cent including options, say they will vote against the buyout. The likelihood of alternative proposals prompting Dell to sweeten his offer has increased since a handful of major shareholders spoke out against the deal, analysts said. "Recent events have raised the level of scrutiny on the situation, which could end up increasing the take-private price," Wells Fargo analyst Maynard Um wrote in a note. Southeastern, run by activist investor Mason Hawkins, has said Dell could borrow money to make a major share repurchase or break up the company and sell units separately. Icahn said only that his interests held a substantial stake in Dell. He did not disclose his exact shareholding. CNBC, citing unnamed sources, reported on Wednesday that Icahn had accumulated about 6 per cent of Dell's shares. That would make him the third-largest shareholder, after Southeastern and Michael Dell himself. Dell shares finshed 0.7 per cent lower at US$14.22 on the Nasdaq on Thursday. They had risen about 8 per cent since trading closed on February 4, the day before Dell announced its plan to go private.-- Reuters Ringgit open higher versus US dollarhttp://www.btimes.com.my/articles/20130308101124/Article/ http://www.btimes.com.my/articles/20130308101124/Article/Fri, 08 Mar 2013 10:11:24 +0800The ringgit opened higher against the US dollar in early trading Friday, rebounded from yesterday's losses in tandem with gains in the local bourse, dealers said. The ringgit was quoted at 3.1050/1080 for a US dollar against 3.1070/1090 yesterday. Dealers said overnight rally in the US stocks with improved US job market helped fuel sentiments in the Asian and currency markets. Against other major currencies, the ringgit was lower against the Singapore dollar at 2.4918/4944 from 2.4906/4926 yesterday but rose against the yen to 3.2698/2747 from 3.3071/3106 Thursday. The local currency was traded lower against the British pound at 4.6612/6670 from 4.6574/6616 Thursday and lower against the euro at 4.0666/0709 from 4.0466/0498 yesterday.-- Bernama Short-term rates to remain stable Fridayhttp://www.btimes.com.my/articles/20130308101425/Article/ http://www.btimes.com.my/articles/20130308101425/Article/Fri, 08 Mar 2013 10:14:25 +0800Short-term rates are expected to remain stable Friday, with Bank Negara Malaysia intervening to absorb excess liquidity from the financial system, dealers said. The central bank estimated today's surplus at RM24.392 billion in the conventional system and RM5.645 billion in Islamic funds. Bank Negara will call for four conventional tenders -- RM500 million for seven days, RM1 billion for 14 days, RM1.2 billion for 21 days and RM1.5 billion for 31 days. It will also conduct a repo tender for RM200 million for 61 days. The central bank will call for four Al-Wadiah tenders for RM600 million for seven days, RM200 million for 14 days, RM600 million for 21 days and RM1.9 billion for 28 days. At 4pm, Bank Negara will conduct up to RM20 billion conventional overnight tender and RM3.3 billion Al-Wadiah overnight tender.-- Bernama KL shares open higher in early tradinghttp://www.btimes.com.my/articles/20130308104741/Article/ http://www.btimes.com.my/articles/20130308104741/Article/Fri, 08 Mar 2013 10:47:41 +0800Share prices opened higher in early trading Friday, supported by selected heavyweights, dealers said. As at 9.52am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 1.2 points to 1,652.13, after opening at 1,650.69. HwangDBS Vickers Research Sdn Bhd said the external equities backdrop continues to be bullish. "Last night, key barometers on Wall Street posted further gains when they rose between 0.2 per cent and 0.3 per cent at the closing bell, driven by signs that the US economic recovery is picking up pace. "This may provide the lead for our Malaysian bourse to show a marginal upward bias today. "On the chart, the benchmark FBM KLCI could challenge the immediate resistance barrier of 1,655 again," the research house said. Meanwhile, the Plantation Index eased 24.6 points to 7,948.79, but the Industrial Index gained 2.26 points to 2,826.75 and the Finance Index advanced 11.42 points to 15,287.17. The FBM Emas Index garnered 12.26 points to 11,275.33, the FBMT100 gained 11.36 points to 11,122.49 and the FBM Mid 70 Index rose 27.71 points to 12,443.6. However, the FBM Ace Index dipped 0.84 of a point to 3,979.26. Gainers led losers by 182 to 110, with 1,367 counters untraded and 27 others suspended. Turnover stood at 155.457 million shares worth RM155.110 million. Among stocks that will likely be in the limelight today is Scomi Group, which has bagged a five-year contract worth RM2.1 billion from Petronas to provide drilling fluids and barites materials. As at 9.52 am, Scomi has gained two sen to 35 sen. Other actives, Metronic Global earned half sen to 10.5 sen and Ariantec Global was flat at eight sen. Among heavyweights, Maybank garnered 10 sen to RM9.15 and Axiata Group and Sime Darby were both unchanged at RM9.20 and RM6.40, respectively.-- Bernama US stocks higher on investor enthusiasmhttp://www.btimes.com.my/articles/20130308072917/Article/ http://www.btimes.com.my/articles/20130308072917/Article/Fri, 08 Mar 2013 07:29:17 +0800NEW YORK: Growing investor enthusiasm for equities in the wake of this week's records pushed US markets higher again Thursday. The Dow Jones Industrial Average surged to an all-time peak for the third day in a row, adding 33.25 points (0.23 per cent) at 14,329.49. The broad-based SandP 500 also moved higher, gaining 2.80 points (0.18 per cent) at 1,544.26, while the tech-rich Nasdaq Composite Index climbed 9.72 (0.30 per cent) to 3,232.09. In addition, markets were gaining from better-than-expected economic data, such as Thursday's report on a weekly decline in jobless claims. The report boosted confidence that Friday's much-watched US payroll and unemployment data would be strong. This week's record run for the Dow has attracted new investors, said Art Hogan, chief market analyst for Lazard Capital Markets. "We're getting new participation," Hogan said. The record results were "dragging people in from the sidelines." Facebook picked up 4.1 per cent. The social network unveiled a project to offer users a "personalised newspaper" based on individual taste. Boeing gained 2.5 per cent after booking new orders for 27 jets, bringing its 2013 net orders through March 5 to 138. Time Warner shares added 2.4 per cent after the group said it would spin off its iconic Time Inc. magazine group. Computer company Dell retreated 0.7 per cent after activist investor Carl Icahn became the latest large shareholder to protest founder Michael Dell's plan to take the company private. Truck maker Navistar surged 27.8 per cent after it reported a narrowing of its quarterly loss and said it was promoting former General Motors executive Troy Clarke to be chief executive. Gap rose 4.1 per cent, lifted by the clothing chain's report of higher same-store sales compared with a year ago. Pet retailer PetSmart fell 6.6 per cent after the company's 2013 guidance missed analyst expectations. -- AFP
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US warns North Korea over 'suicidal' nuclear threat as UN expands sanctions - The Guardian

Posted: 07 Mar 2013 09:58 AM PST

Susan Rice North Korea sanctions
UN ambassador Susan Rice votes at a security council meeting on imposing a fourth round of sanctions against North Korea. Photograph: Spencer Platt/Getty Images

The United Nations security council has voted unanimously to punish North Korea for last month's nuclear test with a toughened sanctions regime, hours after Pyongyang threatened to unleash a pre-emptive nuclear strike on the United States.

Secretary general Ban Ki-moon, a former South Korean foreign minister, said the resolution "sent an unequivocal message to [the North] that the international community will not tolerate its pursuit of nuclear weapons".

The decision by the 15-member council followed lengthy negotiations between the United States and China, the North's main ally. Measures range from tightened financial restrictions to cargo inspections and an explicit ban on exports of yachts and racing cars to the North, but experts say the real issue is enforcement.

China's UN ambassador Li Baodong said Beijing, Pyongyang's main trading partner, wanted to see "full implementation" of the resolution.

Susan Rice, the US ambassador to the UN, told reporters that the measures would "bite hard". She added: "North Korea will achieve nothing by continued threats and provocations."

A foreign ministry spokesman in Pyongyang threatened to launch "pre-emptive nuclear strikes on the headquarters of the aggressors" because Washington was pushing to start a nuclear war against it, in a statement hours before the UN vote.

Experts do not believe the North has managed to produce a warhead small enough to be mounted on a missile that could reach the US. They also pointed out that the original Korean language version referred to "invaders" rather than merely the "aggressors" of the English translation.

Jennifer Lind, assistant professor of government at Dartmouth College in New Hampshire, said that while the statement was disturbing, "North Korea has a long history of bluster and issuing threats that of course it does not carry out, [such as] its long term threats of turning Seoul into a sea of fire."

Earlier this week the North threatened to cancel the 1953 armistice that ended the Korean War.

Thursday's resolution condemns the North's third nuclear test "in the strongest possible terms" as a flagrant breach of previous resolutions, which bar it from testing or using nuclear or ballistic missile technology and importing or exporting material for the programmes.

It aims to hinder those programmes but also targets the ruling elite. A ban on luxury exports was introduced in 2006, but countries could decide what fell under that rubric; this time, specific items are identified.

The resolution warns the North against further provocations and demands its return to the Nuclear Nonproliferation Treaty. But it also stresses the council's commitment "to a peaceful, diplomatic and political solution" and urges a resumption of six-party talks.

All countries are required to freeze financial transactions – including the transport of suitcases stuffed with cash – or services that could contribute to the North's nuclear or missile programmes. Public financial support for trade deals that could assist the programmes is outlawed.

Countries must expel agents working for blacklisted companies from the North. They must inspect aircraft or vessels with suspect cargo and deny entry to those that refuse inspection.

Hazel Smith, an expert on the North at Cranfield University, said the key question was how rigorously the US implemented financial sanctions, citing tough measures taken by Washington towards the end of the Bush administration.

"They did have a major effect; they also paralysed diplomacy. But there is no diplomacy happening now," she said.

Analysts suggest the immediate reaction of the North is likely to be further angry rhetoric and possibly another nuclear test, as Pyongyang hinted earlier. South Korean government sources cited by Seoul news agency Yonhap said on Wednesday that the North had imposed no-fly and no-sail zones off its coasts, apparently preparing for military drills.

"North Korea will throw their usual histrionics about the resolution," said Andrei Lankov of Kookmin University in Seoul in an interview prior to the latest threat.

"Every time there's an escalation the risk of confrontation increases. But neither side wants anything to happen."

At a Senate foreign relations committee hearing on North Korea, chairman Robert Menendez described the nuclear strike threat as "absurd and suicidal".

Menendez, a Democrat, was holding the hearing as the UN security council voted for the resolution. He welcomed the new sanctions but said the US needed to do more to combine sanctions and military countermeasures with strong and realistic diplomacy aimed at North Korea and China.

"There should be no doubt about our determination, willingness, and capability to neutralise and counter any threat that North Korea may present," Menendez said. "I do not think the regime in Pyongyang wants to commit suicide, but that, as they must surely know, would be the result of any attack on the United States."

Glyn Davies, the State Department's special representative on North Korea, warned of "costly consequences" for the country.

Its 12 February nuclear test, he said, represented "an even bolder threat to US national security, the stability of the region and the global non-proliferation regime".

Davies told the committee the Pentagon was working with its counterparts in Japan and South Korea to ensure protection against an attack.

The US would continue to look at unilateral sanctions against banks and other North Korean-linked bodies and seek to harmonise existing sanctions with other countries, he added.

The US will not engage in negotiations unless there is a fundamental change in attitudes in North Korea. "The DPRK leadership must choose between provocation or peace, isolation or integration," Davies said.

Thousands Line Up for Last Glimpse of Chávez - New York Times

Posted: 07 Mar 2013 09:08 AM PST

CARACAS, Venezuela — Thousands of people waited for hours on Thursday to pay a moment of respect to the body of the late president of Venezuela, Hugo Chávez, dressed in his iconic red beret and green military uniform, visible to his people one last time.

The lines, steeped in loyalty and grief, started on Wednesday and stretched through the night at a military academy Mr. Chávez once attended, where he will lie in state until his funeral on Friday.

Many saluted the president's remains. Others crossed themselves. Government television broadcast the endless passage of mourners. One elderly woman beat her breast and nearly fainted. Parents and guards in dark suits picked up small children to give them a look.

"He had his beret on, his red beret, and he looked as if he were sleeping," said Luis Cabrera Aguirre, a retired rear admiral who served as an adviser to Mr. Chávez and was among the first group of officials permitted access.

He said that Mr. Chávez's head and torso were visible through a panel of glass at the coffin's upper half. The closed lower half was draped with the Venezuelan flag. Admiral Cabrera Aguirre said that Mr. Chávez's face and especially his neck appeared a little swollen or puffy, but that otherwise, "he looked just like he did in life."

Mr. Chávez, who was nearly omnipresent here in his 14-year rule, was not seen in Venezuela since leaving for Cuba for his fourth and last cancer surgery on Dec. 11. Even after the announcement of his return, in a pre-dawn flight on Feb. 18, he remained out of sight, while officials said he continued treatment at a Caracas military hospital. His death was announced Tuesday afternoon. He was 58 years old.

Conflicting accounts of his final days were beginning to emerge.

On Thursday, the Reuters news agency reported that a government source said that Mr. Chávez's health deteriorated rapidly after he held a bedside meeting with government ministers over the weekend. The source said that, with the cancer having spread to his lungs, Mr. Chávez had fallen into a coma on Monday, and that he died the next day of respiratory failure.

However, the head of Venezuela's presidential guard, Gen. José Ornella, told The Associated Press late Wednesday that Mr. Chávez died of a major heart attack.

General Ornella said that he was with Mr. Chávez at the moment of his death, and that among his final words were, "I don't want to die. Please don't let me die," the general said, adding, "because he loved his country, he sacrificed himself for his country."

"He couldn't speak, but he said it with his lips," General Ornella said.

Over his final weeks of seclusion, the opposition clamored for Mr. Chávez to make an appearance, and even some of his supporters began to question why he was unable to show himself.

On Thursday, lying in state, Mr. Chávez was finally reunited with his people once more.

Despite a rocky economic record and strings of broken or half-filled promises during his 14 years in office, the fundamental legacy of Mr. Chávez was intangible: he has changed the way Venezuelans think about themselves and their country.

Just as they did on Thursday, when people lined up for one last glimpse of their leader, enormous crowds thronged the streets on Wednesday to watch Mr. Chávez's modest brown wood coffin, covered in a Venezuelan flag, being carried through the capital, Caracas.

As it wound its way from the hospital where he died to the military academy where he studied as a young, unheralded cadet, hundreds of thousands of mourners — many dressed in his movement's characteristic red shirt — chanted, cried, tossed flowers or held up cellphones to photograph the coffin as it passed.

The procession on Wednesday stretched for miles, a river of red with drivers and motorcyclists trailing behind in an impromptu cortege.

"Chávez opened our eyes," said Carlos Pérez, 58, a cookie salesman who drove into town with his wife and took part in the caravan. "We used to be stepped on. We felt humiliated."

Conditions for the poor have certainly improved over the last decade and a half, and the ranks of the poor have shrunk. Government programs have given poor people access to low-cost food and free health care and have knocked down barriers to higher education, though many of those programs are plagued by inefficiencies and long waits.

Mr. Chávez mined and deepened the divide between the masses of Venezuela's poor and the middle and upper classes, presiding over a bitterly divided country. He mercilessly taunted and insulted those who disagreed with him, calling them fascists, good-for-nothings, traitors, oligarchs, reactionaries and puppets of the United States.

And he warned ceaselessly of enemies, inside and outside the country, who he said were poised to take away from the poor the benefits they had received under his government.

According to the Constitution, a new presidential vote must be called within 30 days. The vice president, Nicolás Maduro, 50, became the acting president, and already he appears likely to face a Chávez rival who had put in a strong performance in previous polls.

Reuters quoted opposition sources as saying on Wednesday that they have agreed to back Henrique Capriles, 40, the centrist governor of Miranda State who garnered 44 percent of the vote but lost to Mr. Chávez in last year's election.

William Neuman reported from Caracas, and Christine Hauser from New York.

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