Petrol prices

- A + A PUTRAJAYA (June 27): The government is willing to bear the projected huge subsidy totalling RM77.3 billion for this year towards stabilising the prices of goods and avoiding high inflation rates of up to 11.4%, says Minister in the Prime Minister’s Department (Economy) Datuk Seri Mustapa Mohamed. He said the government had a choice of removing subsidies and strengthening the country’s finances to a better level, but it chose to bear the subsidies instead for the welfare and well-being of the people. Mustapa said the announcement on June 24 by Prime Minister Datuk Seri Ismail Sabri Yaakob of no increase in the water and electricity tariffs, and the chicken price not being floated showed the government’s caring side and commitment to maintaining the subsidies. Referring to the projected consumer subsidy expenditure amounting to RM77.3 billion for 2022, he said RM51 billion of it made up the biggest component of fuel, cooking oil, electricity, water, chicken … [Read more...] about Govt continues giving subsidies to stabilise prices, avoid high inflation

A version of this story first appeared in CNN Business' Before the Bell newsletter. Not a subscriber? You can sign up right here . You can listen to an audio version of the newsletter by clicking the same link. London (CNN Business) Europe and the United States have barred the import of Russian oil to cut off a crucial revenue source for the Kremlin. But the plan to pile pain on President Vladimir Putin, forcing him to reconsider his war in Ukraine, hasn't worked . Russia's government is making just as much money from energy exports as it was before the invasion. Meanwhile, inflation is surging globally, adding to political pressure on heads of state such as US President Joe Biden, British Prime Minister Boris Johnson and French President Emmanuel Macron. That's forcing leaders from top economies who have gathered in Germany for a G7 meeting to consider a new route: slapping price caps on Russian crude . "The goal here is to starve Russia, … [Read more...] about Price cap on Russian oil could shake up the market

Share to Twitter Share to Linkedin Topline Leaders of Group of Seven nations on Monday announced a support package for Ukraine, further sanctions against Russia and are reportedly nearing an agreement to set a price cap on Russian oil, a contentious issue as they debate ways to stave Putin’s war chest while mitigating spiraling inflation, soaring energy prices and an impending global food crisis. Key Facts Leaders of the G-7 —a group of the world’s seven largest economies which includes the U.S., the U.K., Canada, France, Germany, Italy and Japan— announced a suite of new measures against Moscow, including imposing higher tariffs on Russian goods, restricting Russian gold exports and imposing new sanctions on officials and organizations supporting the war effort. The group also unveiled a new support package for Ukraine, including the provision of military hardware, using the higher tariffs on Russian goods to help Ukraine and “financial, … [Read more...] about G-7 Leaders Nearing Price Cap On Russian Oil Funding Putin’s War Chest

- A + A KUALA LUMPUR (June 27): Some palm oil millers in Malaysia, the world's second largest producer, have temporarily halted production following a dramatic plunge in prices of the edible oil, a senior official from a miller's association said on Monday. Malaysian crude palm oil (CPO) prices have seen their biggest one-month decline in more than 13 years in June, tumbling 22% from a high of RM6,632 (US$1,506.25) a tonne to RM4,922 (US$1,117.42) on Monday, erasing most of this year's gains. Malaysian millers purchase palm fruit bunches based on the monthly average CPO price — currently about RM6,200 (US$1,408.13) — but sell the extracted oil based on the daily market price. "No mills can afford to buy fresh fruit bunches at these prices," Steven Yeow, northern president of the Malaysian Palm Oil Millers Association (POMA) told Reuters . Malaysia's benchmark CPO futures had rallied to records this year due to a global edible oil supply squeeze caused by a … [Read more...] about Malaysia’s palm oil millers halt production as CPO prices plummet

- A + A SCHLOSS ELMAU, Germany (June 27): The Group of Seven (G7) rich democracies will commit on Tuesday (June 28) to a new package of coordinated actions meant to raise pressure on Russia over its war in Ukraine, and will finalise plans for a price cap on Russian oil, a senior US official said on Monday. The announcement came amid news that Russia looked set to plunge into its first sovereign default in decades and Ukrainian President Volodymyr Zelenskiy spoke to address G7 leaders meeting at an alpine resort in southern Germany. "The dual objectives of G7 leaders have been to take direct aim at [Russian President Vladimir] Putin's revenues, particularly through energy, but also to minimise the spillovers and the impact on the G7 economies and the rest of the world," the US official said on the sidelines of the annual G7 summit. The G7 nations, which account for nearly half the world's economic output, are determined to crank up the pressure on Russia without … [Read more...] about G7 to hike sanctions on Russia, nears oil price cap deal, says US official

Share to Twitter Share to Linkedin Topline The Federal Reserve’s “heightened sensitivity” to rising inflation expectations could be triggered by a barrage of political ad campaigns that are expected to highlight surging consumer prices ahead of the midterm elections in November, analysts at Goldman Sachs warned on Friday, adding that the central bank may feel “compelled” to keep hiking rates aggressively. Key Facts With the midterm elections looming in November, surging consumer prices will be a major issue for voters—especially as long-term inflation expectations have surged in recent months, according to the latest consumer sentiment survey released by the University of Michigan on Friday. Meanwhile, the Federal Reserve watches long-term inflation expectations closely, and used it in its decision earlier this month to raise interest rates by 75 basis points—the largest increase since 1994. The central bank’s “strong reaction” to the … [Read more...] about Political Ads Targeting Inflation Ahead Of Midterm Elections Could Force The Fed To Keep Hiking Rates: Goldman Sachs

A flood-affected man carrying a luggage wades through a flooded road as he moves to a safer place after heavy rains in Nagaon district, Assam, India, June 21, 2022. - A + A (June 27): India’s flood-hit areas are forecast to receive heavy rains this week, with 532 people losing their lives so far across the nation during the monsoon season and hundreds of thousands staying in temporary relief camps. The northeastern state of Assam has been among the worst-hit regions, with rains affecting 2.5 million people, destroying homes and infrastructure, and delaying sowing of crops such as rice. Drowning and landslides have killed 121 people in the state alone since April 6, according to a home ministry bulletin. Monsoon rains cause the death of hundreds of people in India every year, but the rainy season has been particularly devastating for the hilly states of Assam and Himachal Pradesh this year. About 233,000 people are still in relief camps, with over two dozen teams … [Read more...] about Flood-hit Indian states brace for more monsoon rains, 532 killed

- A + A JAKARTA (June 27): A former Garuda Indonesia chief convicted of graft is being investigated for alleged irregularities in procuring Bombardier and ATR planes, Indonesia's attorney general said on Monday, in deals the state auditor said led to $600 million in losses. Emirsyah Satar, the flag-carrier's chief executive from 2005 to 2014, was sentenced to eight years in prison in 2020 for bribery and money laundering in buying planes and engines from Airbus and Rolls-Royce . The U.S. Department of Justice and Britain's Serious Fraud Office are also investigating suspected bribery related to sales of jets by Canadian plane maker Bombardier to Garuda between 2011 and 2012. "This was his responsibility in carrying out the work during his tenure," Attorney General Sanitiar Burhanuddin told a news conference. Satar could not immediately be reached for comment. Indonesian state auditor BPKP found Garuda paid an inflated price for 23 Bombardier CRJ and ATR 72 … [Read more...] about Indonesia names jailed ex-Garuda chief a suspect in new graft case

- A + A HONG KONG (June 27): China's fourth-biggest developer may miss a local bond payment for its first time ever, pressuring an onshore credit market that has remained resilient amid a property debt crisis and record offshore defaults. Sunac Real Estate Group Co said in an exchange filing on Friday it likely would not be able to raise enough funds to make a 400 million yuan (US$60 million) payment due June 30 for a portion of the note principal along with related interest. The deadline is part of an instalment plan Sunac got approval for several months ago that extended full repayment of the four billion yuan security by 18 months. A separate note maturing next year fell 15% on Monday while some due in 2025 closed at record lows, according to data compiled by Bloomberg. China's US$12.3 trillion local bond market has so far held up relatively well despite a cash crunch in the property sector sparked by a government crackdown on excessive leverage and housing … [Read more...] about Chinese builder Sunac may miss local bond payment in a first

- A + A MUMBAI/MANILA (June 27): Signs of distress flashing in bond markets suggest the world's poorest nations are set to see a wave of debt restructurings. But a growing cohort of investors say that is a buying opportunity. Panic selling in the aftermath of Sri Lanka's economic collapse has sent the average yield in junk-rated emerging economies to almost 900 basis points above US Treasuries, the highest risk premium in 13 years except for the Covid-19-related rout in 2020, according to JPMorgan Chase & Co data. Yet, initial fears about a widespread default Armageddon across emerging markets is easing, and money managers are looking beyond the handful of countries that may reschedule their debt. This shift in perception means at least some smaller developing nations, called frontier markets, have been unduly punished in the recent sell-off and now offer highly attractive yields. Even in the event of debt restructuring, their bonds will offer greater recovery … [Read more...] about Frontier-debt buyers look past default risk in hunger for yield