Isnin, 24 Jun 2013

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Ringgit rebounds in early trade

Posted: 24 Jun 2013 06:55 PM PDT

The ringgit rebounded against the US dollar, in early trade today, on fresh buying interest, dealers said.

At 9.10am, the currency was quoted 3.2055/2085 against 3.2180/2210 yesterday.

A dealer said the greenback had retreated from a near three-week peak on renewed concerns after Federal Reserve officials released a comment saying the Fed's exit strategy was still way out in the future.

The local currency was lower against the Singapore dollar at 2.5149/5188 from 2.5141/5168 on Monday but strengthened against the yen to 3.2704/2748 from 3.2797/2844 previously.

The ringgit depreciated against the British pound to 4.9504/9564 from 4.9454/9510 yesterday but was stronger against the euro at 4.2062/2108 from 4.2175/2224 on Monday.-- Bernama

KL shares open lower

Posted: 24 Jun 2013 06:53 PM PDT

Bursa Malaysia opened lower this morning as investors took cue from the overnight losses on Wall Street amid weak global
sentiment, dealers said.

At 9.03am, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 13.03 points lower at 1,725.16 after opening 10.46 points easier at 1,727.73.

The composite index was dragged down by losses mostly seen in finance counters and key heavyweights like Maybank, CIMB, Petronas Chemicals and UMW.

HwangDBS Vickers Research said the selling momentum was set to continue today.


"Key US equity bellwethers slid between 0.9 per cent and 1.2 per cent at the closing bell on persistent concerns over premature quantitative easing withdrawal by the Federal Reserve and weakening economic fundamentals in China.

"The bearish external backdrop will likely pile additional selling pressure on Malaysian equities ahead," it said in a note.

The benchmark FBM KLCI, after slipping below the 1,750 points level, remains vulnerable to further downside risk, possibly pulling back deeper towards the major support line of 1,720 points, the research firm added.

On the scoreboard, the Finance Index erased 131.93 points to 16,372.99, the Industrial Index decreased 19.62 points to 2,894.76 and the Plantation Index trimmed 4.7 points to 8,155.69.

The FBM Emas Index fell 90.81 points to 11,941.43, the FBMT100 Index lost 91.49 points to 11,724.16, the FBM Mid 70 Index trimmed 118.05 points to 13,580.85 and the FBM Ace Index erased 5.09 points to 4,644.35.

Market breadth was negative as losers thumped gainers 156 to 48, with 90 counters unchanged, 1,298 untraded and 22 others were suspended.

Volume amounted at 40.792 million shares worth RM55.387 million.

Among actives, Flonic Hi-Tech inched up half-a-sen to 8.5 sen, Cybertowers added one sen to 18 sen and TDM gained three sen to 78.5 sen.

As for heavyweights, Maybank lost 12 sen to RM10.02, CIMB erased eight sen to RM8.05, both Sime Darby and Petronas Chemicals were seven sen lower at RM9.33 and RM6.51, respectively, while Axiata Group slipped three sen to RM6.57.-- Bernama

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Snowden whereabouts unknown as Russia resists US pressure - Reuters

Posted: 24 Jun 2013 09:05 AM PDT

Russian policemen stand outside the embassy of Ecuador in Moscow, June 24, 2013. REUTERS/Nikolay Asmolovskiy

MOSCOW | Mon Jun 24, 2013 11:44am EDT

(Reuters) - Former U.S. spy agency contractor Edward Snowden's whereabouts were a mystery on Monday as Russia resisted White House pressure to send him back to the United States or stop him continuing on his journey to escape U.S. prosecution.

Snowden, whose exposure of secret U.S. government surveillance raised questions about intrusions into private lives, was allowed to leave Hong Kong on Sunday despite Washington asking the Chinese territory to arrest him on espionage charges.

Julian Assange, the founder of anti-secrecy group WikiLeaks which is assisting Snowden, said the 30-year-old had fled to Moscow en route to Ecuador and was in good health in a "safe place" but did not say where he was now.

There are no direct flights to Ecuador from Moscow and reports that he would fly there via Cuba were put in doubt when witnesses could not see him on the plane, despite tight security before take-off. A WikiLeaks spokesman muddied the waters by saying an approach had also been made to Iceland for asylum.

Ecuador, which is already sheltering Assange at its London embassy, said it was considering Snowden's request for asylum and that human rights were its main concern.

"He didn't take the flight (to Havana)," a source at Russia's national airline Aeroflot told Reuters.

As speculation grew about where he would go next, Washington was stung by Russian defiance.

Snowden's flight to Russia, which like China challenges U.S. dominance of global diplomacy, is an embarrassment to President Barack Obama who has tried to "reset" ties with Moscow and build a partnership with Beijing.

The White House said it expected the Russian government to send Snowden back to the United States and lodged "strong objections" to Hong Kong and China for letting him go.

U.S. Secretary of State John Kerry said during a visit to India that it would be "deeply troubling" if Moscow defied the United States over Snowden, and said the fugitive "places himself above the law, having betrayed his country".

But the Russian government ignored the appeal and President Vladimir Putin's press secretary denied any knowledge of Snowden's movements.

Asked if Snowden had spoken to the Russian authorities, Peskov said: "Overall, we have no information about him."

He declined comment on the expulsion request but other Russian officials said Moscow had no obligation to cooperate with Washington, after it passed legislation to impose visa bans and asset freezes on Russians accused of violating human rights.

The Russian news agency Interfax quoted an unnamed source as saying Moscow could not arrest or deport Snowden because he had not entered Russian territory - suggesting he had remained in the transit area at Moscow's Sheremetyevo airport.

U.S. HYPOCRISY

"Why should the United States expect restraint and understanding from Russia?" said Alexei Pushkov, the head of the foreign affairs committee in the lower house of parliament.

Putin has missed few chances to champion public figures who challenge Western governments and to portray Washington as an overzealous global policeman. But Russian leaders have not paraded Snowden before cameras or trumpeted his arrival.

Since leaving Hong Kong, where he feared arrest and extradition, Snowden has been searching for a country that can guarantee his security.

Ecuador's foreign minister, Ricardo Patino, said during a trip to Vietnam that Quito would take into account a U.S. request about Snowden and is in "respectful" contact with Russia about him. He gave no details of the U.S. request.

"We will consider the position of the U.S. government and we will take a decision in due course in line with the (Ecuadorean) constitution, the laws, international politics and sovereignty," Patino told a news conference in Hanoi.

A source at Aeroflot said on Sunday Snowden was booked on the flight due to depart for Havana on Monday at 2:05 p.m. (1005 GMT). But a correspondent aboard could not see him and the seat he was supposed to occupy, 17A, was taken by another passenger.

It was not immediately clear whether the plane had a crew section where Snowden might have been concealed.

U.S. Senator Charles Schumer said Putin had probably known about and approved Snowden's flight to Russia, and saw "the hand of Beijing" in Hong Kong's decision to let Snowden leave.

But taking the higher ground after being accused of hacking computers abroad, the Chinese Foreign Ministry expressed "grave concern" over Snowden's allegations that the United States had hacked computers in China. It said it had taken up the issue with Washington.

CHILL

Some Russians have praised Snowden's revelations. Others fear a new chill in relations with the United States.

"We are a pretty stubborn country and so is the United States. Both are mighty countries, so I would say this has a good potential to turn into a big fuss in bilateral relations," said Ina Sosna, manager of a Moscow cleaning company.

"I guess it would be best if they just let him move on from Russia to avoid any more controversy over him being here."

WikiLeaks said Snowden was supplied with a refugee document of passage by Ecuador and that a British legal researcher working for the anti-secrecy group had accompanied him.

Ecuador, like Cuba and Venezuela, is a member of the ALBA bloc, an alliance of leftist governments in Latin America that pride themselves on their "anti-imperialist" credentials. The Quito government has been sheltering Assange at its London embassy for the past year.

Snowden, who had worked at a U.S. National Security Agency facility in Hawaii, had been hiding in Hong Kong, a former British colony that returned to China in 1997, since leaking details about secret U.S. surveillance programs to news media.

He has been charged with theft of federal government property, unauthorized communication of national defense information and willful communication of classified communications intelligence to an unauthorized person, with the latter two charges falling under the U.S. Espionage Act.

(Additional reporting by Gabriela Baczynska and Alexei Anishchuk in Moscow, Martin Petty in Hanoi, Sui-Lee Weein in Beijing,; Andrew Cawthorne, Mario Naranjo and Daniel Wallis in Caracas, Alexandra Valencia in Quito and Mark Felsenthal, Paul Eckert and Mark Hosenball in Washington; Writing by Timothy Heritage and Elizabeth Piper, Editing by Mark Heinrich and Anna Willard)

Supreme Court Returns Affirmative-Action Case to Lower Court - Wall Street Journal

Posted: 24 Jun 2013 09:01 AM PDT

The Supreme Court avoided a sweeping ruling on affirmative action in a closely watched case involving the University of Texas, sending the case back to a lower court for a new review. Jess Bravin and Ashby Jones discuss the ruling. Photo: Getty Images.

The Supreme Court avoided a sweeping ruling on affirmative action in a closely watched case involving the University of Texas, sending the case back to a lower court for a new review.

The court's ruling on Fisher v. University of Texas was 7-1, with the majority opinion by Justice Anthony Kennedy. Justice Ruth Bader Ginsburg dissented, and Justice Elena Kagan, who was solicitor general when the Obama administration weighed in on the case, recused herself from the decision.

Justice Kennedy said the Fifth Circuit U.S. Court of Appeals made legal errors when it upheld the university program. The lower court should have scrutinized the university program more strictly, Justice Kennedy said.

The justices were ruling on the case of Abigail Fisher, who alleged the university rejected her because she is white.

Read the Ruling

See the full text of the ruling in Fisher v. University of Texas.

The University of Texas's use of diversity in the admissions process will face a new test in the 5th Circuit Court. Ashby Joes and Jess Bravin discuss. AP Photo.

Justice Kennedy said the Supreme Court wants the lower court to hear the case again "so that the admissions process can be considered and judged under a correct analysis."

UT gives automatic entry to any Texas student who graduates in roughly the top 10% of his or her high-school class. That program was designed to maintain ethnic and racial diversity after a 1996 federal-appeals-court ruling restricted affirmative action in Texas and nearby states.

But after 2003, when the Supreme Court voted 5-4 to reinstate affirmative action, UT quickly supplemented its top-10% plan with an additional admissions pathway that allowed consideration of race and other factors beyond grades and test scores. UT said that pathway was designed for middle- or upper-class children of African-American and Hispanic professionals who attend more competitive schools.

While the top-10% plan vastly expanded the number of Texas high schools sending graduates to the state's flagship campus, UT administrators frowned at having to accept applicants from less competitive high schools, whose top students often had lower test scores and poorer academic preparation than middle-tier students from leading suburban high schools that traditionally served as the university's principal feeders.

The university said the presence of better-off minority students could help dispel stereotypes that could be perpetuated by the presence of those admitted through the top-10% program.

That stance drew harsh questioning from the Supreme Court's conservative wing at arguments last October.

"I thought that the whole purpose of affirmative action was to help students who come from underprivileged backgrounds, but you make a very different argument that I don't think I've ever seen before," said Justice Samuel Alito.

When UT's lawyer, Gregory Garre, attempted to explain the admissions formula as a "holistic" review of individual attributes, Justice Kennedy heard something else.

"So what you're saying is that what counts is race above all," said Justice Kennedy, considered a swing vote on affirmative action. "You want underprivileged of a certain race and privileged of a certain race. So that's race."

Other state universities, such as the University of North Carolina at Chapel Hill, said that using a race-blind top-10% plan could actually increase racial diversity on campus, but at the unacceptable price of admitting less-qualified applicants who would lower the institution's national ranking.

Ms. Fisher, the white student who sued UT, was recruited by lawyer Edward Blum, an activist opposed to affirmative action and other race-conscious government policies. Her suit alleged that the admissions formula violated her 14th Amendment right to "equal protection of the laws."

A federal district court and the Fifth Circuit disagreed, finding that the UT system met the standards established by the Supreme Court's 2003 decision, Grutter v. Bollinger, which suggested that race-conscious admissions practices might be justifiable for another quarter-century.

Since 2003, the Supreme Court's composition shifted to the right on matters of race, when Justice Sandra Day O'Connor, author of the Grutter decision, retired and was succeeded by Justice Alito, who has shown far greater skepticism toward race-conscious polices.

Associated Press

People waited outside the Supreme Court in Washington on Monday.

At the arguments last year, liberal justices seemed frustrated that so recent a ruling was being reconsidered.

"Grutter said it would be good law for at least 25 years, and I know that time flies, but I think only nine of those years have passed," said Justice Stephen Breyer. "Why overrule a case into which so much thought and effort went and so many people across the country have depended on?"

Although Ms. Fisher's lawyers contended that the UT policy violated even the 2003 Grutter precedent, all sides saw the case as intended to end affirmative action outright.

The Obama administration backed UT, arguing that affirmative action was important for several official objectives, particularly in the military. The Pentagon said ethnic and racial diversity of the enlisted force was necessary to foster morale and retain discipline in the ranks.

For most of its history, the University of Texas, like Texas itself, was segregated by law. A 1950 Supreme Court ruling forced UT to admit an African-American to its law school, paving the way for the 1954 Brown v. Board of Education decision holding segregated schools unconstitutional. Even so, UT didn't agree to accept black undergraduates until 1956, and it continued to operate whites-only dormitories into the 1960s.

After she was rejected by UT's flagship Austin campus, Ms. Fisher had the option of attending another UT campus and transferring after one year to Austin if she performed adequately. She chose instead to attend Louisiana State University, across the state line in Baton Rouge. She has since graduated and moved to Austin.

Write to Jess Bravin at jess.bravin@wsj.com and Brent Kendall at brent.kendall@dowjones.com

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