Thursday, 27 April 2017

GST. Zero Per Cent. Barisan Nasional. Idiot Song

Is the 1974 minor hit for Monty Python.

I do like some people in Barisan Nasional, but I must agree with Lim Guan Eng on the zero per cent GST tax.

The people will welcome it, with that, the idiot song award goes to Barisan Nasional's communication team for saying that bringing the GST down to zero does not bring benefit to any party.

If my assertion is correct, what this means is that the Rakyat, is not a party in this nation according to BN Communication team. Malaysiakini has the story, which might just get BN kicked out from the government. :

The BN strategic communications team has criticised Lim Guan Eng's statement that Pakatan Harapan has decided to reduce the Goods and Services Tax (GST) rate from six percent to zero percent as part of their campaign manifesto.

"He continues to insist that reducing GST to zero percent is the same as abolishing GST.

"This is untrue as the government and businesses will continue to bear the unnecessary administrative expenses of GST-compliance but does not give benefits to any party. It will become a big negative with no positive benefits," said the team in a media statement.

Wednesday, 26 April 2017

UMNO Vs UMNO. Mask Off

Is a current US top five hit for Future taken from the album named future.

The future looks very interesting as the masks are off, and UMNO itself is asking why the double payment on the 1mdb bonds.

Malaysiakini has the story. Read Below :

What happened to the previous payments from 1MDB to Abu Dhabi’s Aabar?

This question has been posed by Kulim Bandar Baharu MP Aziz Sheikh Fadzir, who is also one of the BN representatives on the Public Accounts Committee (PAC).

Aziz said this following the announcement of the settlement between 1MDB and International Petroleum Investment Co (IPIC), which is owned by the government of Abu Dhabi.

“I am supportive of the settlement… but the Finance Ministry must explain to the PAC where the payments 1MDB made to Aabar go to before this,” Aziz (photo) told Malaysiakini when contacted.

IPIC initiated arbitration proceedings last year to claim US$6.5 billion from 1MDB. The settlement was announced yesterday.

According to filings made to the London Stock Exchange, IPIC said it will receive US$1.2 billion in two equal payments on July 31 and Dec 31.

Pos Malaysia. If You Believe

Is the 1999 hit from Sasha. Pos Malaysia shares today closed at RM5.27 a share, it's strongest close in 52 weeks.

If you believe what I told you in September 2016, then this stock will touch RM6 a share before the first anniversary of my posting.

Tuesday, 25 April 2017

Stock Market. Armageddon

Is the highly acclaimed cult hit by Michelle Treacy, which got her a Juno nomination in 2016.

For those of us who think that Malaysia paying the "Arabs" again for the second time, and that the Ringgit firming up to RM4.37 against the US Dollar is an indication of good things to come.

Think Again.

May is just around the corner and as the saying goes sell in May and go away. If that is not enough, there is a case of an Armageddon taking shape .

Bloomberg has the story. Read below :

The Chinese and U.S. stock markets are going in opposite directions.

An intensifying crackdown against leverage in Asia’s biggest economy has rocked the hither-to unflappable Shanghai Composite Index over the past week, sending it to a three-month low last session. In the U.S., the largest equity market is embracing a risk rally spurred by the French election, with the S&P 500 Index continuing to build on reflation-trade gains ignited by Donald Trump’s November victory.

The divergence means the two markets are the least in tune since August 2008 -- just before the collapse of Lehman Brothers Holdings Inc. unleashed chaos on the global financial system

Sunday, 23 April 2017

Jho Low. Criminal

Is a so so hit for Britney Spears taken from her album Femme Fatale.

What is the worst kept secret in town is that Malaysia and the Arabs have agreed to a deal on the 1MDB bond repayment which will be announced today on the London Stock Exchange.

The deal is very unfavourable to Malaysia. Instead of paying US$1.5 billion , we will now be paying the Sheikhs in the desert a MINIMUM of US$2.5 billion .

This is a huge amount of money, but it is an amount Malaysia can actually pay, as we are well off country, to put this 1MDB shit into the sewerage​ once and for all.

Unfortunately, money is not the only concern here, because as long as that criminal Jho Low is allowed to walk free, Malaysia will remain the only equity market in the developing economies, where global funds are under weight.

Sure for a day or two after this announcement on the stock market in London, the Kuala Lumpur market will run.

After that people will ask , why is it we have agreed to pay this much to the Arabs, when we have actually already made the payments.

Opps, that payment went to Jho Low isn't it? Why is Jho Low on a yatch? When will the Malaysia Government formally issue a warrant of arrest against this fat Chinaman?

If you don't, do that...Be very careful in calling for a general elections, because even in red Malaysia, the children are starting to talk to their parents.

Saturday, 22 April 2017

Morgan Stanley Versus Nomura. The great pretender.

Is the 1960's classic from the platters .

Malaysia looks to be like a great pretender, with Morgan Stanley saying that despite being the only country to be under weight by foreigners in South East Asia, good things are coming our way.

Nomura says no such thing, pointing out that our stock market has gone up by six per cent against the MSCI, and even though, corporate earnings will go up by between eight to nine per cent, valuation wise, we are still the most expensive buy in South East Asia

Morgan Stanley though, has been muted and un convincing on the valuation front.

CNBC has the story. Read below :

Morgan Stanley believes that Najib will call for election this September.

Malaysian company earnings were also poised for recovery, Morgan Stanley said, estimating profit growth would improve to 8-9 percent in 2017-18 after three years of declines.

The bank also pointed to construction companies' "peak" order book levels, a 10 percent rise in palm-oil volumes with chances for price increases and a drop in banks' provisions as non-performing loans peak.

The fifth driver for Malaysia stocks was a "cheap and supported" currency, the bank said.

"We think domestic sentiment on the ringgit has stabilised, with lower political uncertainty and improving commodity prices," it said. "The conversion of export proceeds into ringgit is also supportive."

Earlier this year, the ringgit had weakened to around levels not seen since the Asian Financial Crisis in 1997, with the dollar fetching as much as 4.4980 ringgit.

In Friday trade, the dollar was fetching around 4.39 ringgit.

To be sure, the bank noted that the MSCI Malaysia may be expensive compared with its Southeast Asian peers, trading at 16.3 times the next 12-months' earnings.

But it added that it believed earnings were depressed, with the index trading at only 14.9 times its 2018 earnings per share forecast.

The bank also noted that Malaysia was the only Southeast Asian market where foreign investors were underweight compared with other emerging markets.

"Given the low positioning, upcoming catalysts, and turnaround we have seen in commodity-oriented currencies like the Brazilian real (BRL) and Russian ruble (RBL), Malaysia could see an influx of foreign equity flows, which could help re-rate the market further along with improving earnings trajectory," it said.

It set a base case MSCI Malaysia target at 645, compared with levels around 605 currently.

Not all analysts were taking a positive view on Malaysia's market. Nomura said in a note on Friday that it was staying underweight.

Nomura said the primary argument for increased interest in Malaysia stocks was that after underperforming regional peers "so significantly" for four years, the market should be attractively valued. The bank also noted that politics and governance appeared to be improving and that an early election could bring further inflows to the market.

But Nomura wasn't convinced.

"The market is not cheap," it said, adding that stocks there could be the most expensive in the region.

Nomura also said that while earnings had bottomed, they continued to underperform the region and would continue to do so in 2017 and 2018.

1MDB. RM10 billion. Deal

Is a minor hit for the greatful dead, taken from the album dead set.

Well it looks like we are dead set for a deal with the Arabs, and if this deal does go through, then what it means is the government of Malaysia must seek to arrest Jho Loh via Interpol's red alert . This fat Chinaman must be arrested and justice served

Bloomberg has the story :

Malaysia has reached an agreement to pay Abu Dhabi $2.5 billion as partial debt settlement for embattled government fund 1Malaysia Development Bhd., according to a person familiar with the matter.

Under a deal that’s expected to be announced Monday on the London Stock Exchange, Malaysia will pay Abu Dhabi $1.2 billion before the end of this year, said the person, who asked not to be identified as the information isn’t yet public. Malaysia will also assume the coupon obligations for two dollar bonds issued by 1MDB and co-guaranteed by Middle Eastern sovereign wealth fund International Petroleum Investment Co., the person said. 

1MDB and the Malaysian finance ministry will pay the $2.5 billion through proceeds raised from the sale of units Brazen Sky Ltd. and 1MDB Global Investment Ltd., the person said. The two countries also agreed not to pursue legal action before December 2020 as they negotiate the dispute over $3.5 billion linked to the two bonds, the person said.