Malaysian police to question ex-PM Mahathir over rally comments 

Former Malaysian premier Mahathir Mohamad will be questioned over statements he made at massive weekend demonstrations held to demand current Prime Minister Najib Razak's ouster over corruption allegations, police said on Wednesday. 

ST PHOTO: MARK CHEONG

SEP 2, 201512:03 PM

[KUALA LUMPUR] Former Malaysian premier Mahathir Mohamad will be questioned over statements he made at massive weekend demonstrations held to demand current Prime Minister Najib Razak's ouster over corruption allegations, police said on Wednesday.

Mr Mahathir, 90, who was Malaysia's longest-serving prime minister, electrified crowds at the demonstrations by tens of thousands in Kuala Lumpur on Sunday by calling for a sustained public push to topple Mr Najib.

He also accused Mr Najib of bribing politicians in the ruling party, the United Malays National Organisation (UMNO), for their support, saying the premier was clinging to power to avoid corruption charges.

"We will call him (Mahathir). He has made speeches and accusations," national police chief Khalid Abu Bakar was quoted saying by online news outlet Malaysiakini.

"Among them, he claimed UMNO leaders had taken bribes, so we want to find out more." The report gave no further details.

Malaysia's ruling coalition routinely hauls in opponents who take part in anti-government actions, in what the opposition calls a pattern of systematic harassment.

It was not clear whether Mr Mahathir, who remains influential in the ruling party, would face any charges.

Organisers of the weekend demonstrations also have said they had been ordered to report to police on Wednesday.

Mr Najib has been under growing pressure since The Wall Street Journal revealed in early July that Malaysian investigators had found nearly US$700 million in mysterious deposits into his personal bank accounts.

His government has since admitted the deposits occurred, calling them "political donations" from Middle Eastern sources but refusing to give further details.

Outrage over the scandal has been heightened by subsequent government personnel moves by Mr Najib - including sacking Malaysia's attorney general - that appear to have stalled investigations.

Mr Najib had already been facing demands for months that he explain the whereabouts of huge sums allegedly missing from deals involving a state-owned company he launched.

He denies any wrongdoing, saying he is the victim of a "political conspiracy".

AFP

      

Forecasters lower Singapore growth and inflation projections for 2015

By

Kelly Taykellytay@sph.com.sg@KellyTayBT

Singapore's economic forecasters have tempered both their growth and inflation expectations for 2015, according to a Monetary Authority of Singapore (MAS) quarterly survey released on Wednesday. 

PHOTO: ST FILE

SEP 2, 201512:01 PM

SINGAPORE'S economic forecasters have tempered both their growth and inflation expectations for 2015, according to a Monetary Authority of Singapore (MAS) quarterly survey released on Wednesday.

They now expect the economy to grow by just 2.2 per cent this year - down from the 2.7 per cent projected a quarter ago. They are also more pessimistic on the outlook for the manufacturing and construction sectors, and most services clusters.

Headline and core inflation are expected to come in at -0.2 per cent and 0.5 per cent respectively in 2015 - a fall from the 0 per cent and one per cent forecast in the previous survey.

Core inflation excludes the costs of accommodation and private road transport.

Sent out on Aug 11, MAS's September issue of its Survey of Professional Forecasters received 23 respondents.

Both private-sector growth and inflation projections fall within the government's forecasts. According to the Ministry of Trade and Industry (MTI), the Singapore economy should expand between 2 and 2.5 per cent in 2015 - a narrowed forecast from its previous 2 to 4 per cent projection.

Headline and core inflation, meanwhile, are projected to average -0.5 to 0.5 per cent and 0.5 to 1.5 per cent respectively.

    
 

IMF's Lagarde warns of spillover risks from recent volatility 

Recent volatility in global financial markets shows how rapidly risks can spill over from one economy to the next, the managing director of the International Monetary Fund (IMF) said in Jakarta on Wednesday. 

PHOTO: REUTERS

SEP 2, 201511:20 AM

[JAKARTA] Recent volatility in global financial markets shows how rapidly risks can spill over from one economy to the next, the managing director of the International Monetary Fund (IMF) said in Jakarta on Wednesday.

"What has been demonstrated in the last few weeks is how much Asia is at the core of the global economy, and how much disruption in one market in Asia can actually spill over to the rest of the world," Christine Lagarde told a conference in Indonesia's capital.

Ms Lagarde said the world economy was facing headwinds from China's rebalancing, Japan's slow growth, falling commodity prices and uncertainties surrounding higher US interest rates.

Policies need to be tailored to each country, Ms Lagarde said, but mostly they would involve strengthening defences with prudent fiscal policy, reining in excessive credit growth, aligning exchange rates to act as shock absorbers, and maintaining adequate foreign exchange reserves.

"The authorities and the supervisors constantly have to remain vigilant particularly when there are those new and innovative products...those risks have to be under the watch of the supervisors, be they in traditional banking, be they in these disruptive banking systems or in these shadow banking systems," Ms Lagarde said.

REUTERS

      

China to boost state-owned asset management reforms

      

China will speed up reforms on how state-owned assets are managed, the country's finance ministry said in a statement published on its website on Wednesday. 

PHOTO: AFP

SEP 2, 201510:36 AM

[BEIJING] China will speed up reforms on how state-owned assets are managed, the country's finance ministry said in a statement published on its website on Wednesday.

Areas in which the ministry said it would focus include streamlining management processes and improving control of government department budgets.

The statement was dated Aug 28 and posted on the ministry's website on Wednesday.

REUTERS

Passengers stranded in dark after Eurostar trains suspended

A Eurostar staff member (partially hidden) talks to passengers on a stranded Eurostar service from Paris to London, at Calais Station in Calais, France September 2, 2015. 

PHOTO: REUTERS

SEP 2, 201510:23 AM

[LILLE] Eurostar passengers were left stranded in the dark after "trespassers" entered the tracks on Tuesday, in the latest disruption to the cross-Channel service by suspected migrants trying to reach Britain.

Five trains - one in Britain and four in France - were prevented from entering the Channel Tunnel after people blocked the tracks in Calais at around 10.30 pm (2030 GMT) Eurostar said. A sixth train was also interrupted in Britain, a spokesman for French rail company SNCF said.

"We have trespassers on the French side of the tunnel, which means that the traffic is blocked. Five trains are stuck on both sides," a Eurostar spokesman said.

"We are waiting for the police to clear the zone so that the trains and traffic can start again. Because we don't know when the site will be cleared we really can't say anything about how long the tunnel delay will be. It's impossible for us to say right now." Another train, travelling from London to Paris, was also forced to return to the British capital, according to the SNCF spokesman, who added that rail traffic had now resumed.

"Security forces intervened to clear the track once it had stopped, and that blocked the Eurostar that was travelling to London and the power had to be cut for safety reasons," the SNCF spokesman said.

Three Eurostar trains bound for London that were blocked from entering the tunnel have been completely freed, while a Eurostar blocked at the entrance to the tunnel had to return to Paris, he added.

But by nearly 3.00 am Wednesday French time, some passengers were still left stuck on trains in what they said were intolerable conditions.

"There is no more electricity and we have been left in darkness," said Geraldine Guyon, a passenger who has been stuck on a Eurostar train from Paris to London for several hours, adding that the heat in the carriage is becoming "unbearable".

Passengers were earlier told the train was stopped because of problems with migrants on the tracks and a helicopter was seen flying above the train, but now the conductor has announced "the Eurostar cannot re-start because a window has been broken," she added.

France and Britain have brought in emergency measures to deal with a surge in the number of migrants trying cross the Channel Tunnel after people have been killed while making a desperate attempt to reach England.

Some 3,000 migrants camped out in the northern French port of Calais have been ramping up their attempts to outfox hopelessly outnumbered security officials and police to reach what they see as the "El Dorado" of Britain.

AFP

    
 

US opens anti-dumping probe on US$2b in steel imports

The US Commerce Department launched a probe on Tuesday into alleged dumping by several foreign steel producers accused of undercutting America's domestic industry. 

PHOTO: AFP

SEP 2, 20159:38 AM

[WASHINGTON] The US Commerce Department launched a probe on Tuesday into alleged dumping by several foreign steel producers accused of undercutting America's domestic industry.

US officials said seven nations were involved in underpricing some two billion dollars worth of steel: Australia, Brazil, South Korea, the Netherlands, Britain, Japan and Turkey.

Japanese producers were selling hot-rolled steel flat products into the United States at 16 per cent under the market prices while producers from Turkey discounted their steel by one-third.

South Korea is the largest supplier of cold-rolled flat steel to the United States, exporting US$678.8 million worth last year.

The probe was brought on behalf of major US steel producers who have been hit with competition from cheaper imports as the global steel industry endures a supply glut, mainly due to China's downturn.

The Commerce Department said it would reach a preliminary determination on the probe by September 25, and could set anti-dumping and anti-subsidy duties beginning as early as November.

AFP

    
 

China: Shanghai stocks plunge 4.39% at the open

PHOTO: EPA

SEP 2, 20159:43 AM

[SHANGHAI] Shanghai stocks opened down 4.39 per cent Wednesday on deepening gloom over the Chinese economy which slammed global markets overnight, dealers said.

China's benchmark Shanghai Composite slumped 138.94 points to 3,027.68. The Shenzhen Composite Index, which tracks stocks on China's second exchange, dropped 4.66 per cent, or 79.60 points, to 1,628.18.

AFP

At least five dead from Monday's chemical plant blast in China: Xinhua

The death toll from an explosion at a chemical plant in China's Shandong province late on Monday has risen to five, state news agency Xinhua reported, as China still seeks answers to a far larger blast in the port city of Tianjin earlier last month. 

PHOTO: EPA

SEP 2, 20159:13 AM

[SHANGHAI] The death toll from an explosion at a chemical plant in China's Shandong province late on Monday has risen to five, state news agency Xinhua reported, as China still seeks answers to a far larger blast in the port city of Tianjin earlier last month.

The latest blast happened close to midnight in a county roughly 275 km south of Tianjin, where explosions at a warehouse storing dangerous chemicals devastated an industrial park on Aug 12 and killed at least 145 people.

The explosions have raised questions about safety standards in China, where industrial accidents are all too common following three decades of breakneck economic growth.

Residents displaced by the huge Tianjin blasts protested in anger last month, demanding compensation.

Xinhua said on Wednesday the fire at the Shandong Binyuan Chemical Co Ltd, in Lijin county, was extinguished before dawn on Tuesday, and waste water from the plant had been sealed without any spillover.

The cause of the incident was under investigation, it said without giving further details.

REUTERS

    
 

Australia's economy grows at half pace of forecast on China woes 

Australia's economy expanded at a slower pace than economists forecast in the three months through June - only propped up by government and household spending - as a slowdown in key trading partner China weighed on growth. 

PHOTO: AFP

SEP 2, 20159:54 AM

[SYDNEY] Australia's economy expanded at a slower pace than economists forecast in the three months through June - only propped up by government and household spending - as a slowdown in key trading partner China weighed on growth. The currency slumped.

Gross domestic product advanced 0.2 per cent from the first three months of the year, when it rose 0.9 per cent, government data showed on Wednesday. That compared with the median of 27 estimates for a 0.4 per cent gain.

Firms in Australia - an engine room of the decade-long global commodity boom - plan to cut investment in the next 12 months, betting they can meet demand from heavily indebted households with existing capacity.

The report spans a period when Australia cut interest rates for the second time this year to a record-low 2 per cent to offset falling commodity prices, even as the currency gained during the quarter, weakening companies' competitiveness.

"We expect growth to continue to trudge along at a below- trend rate," Felicity Emmett, a senior economist at Australia & New Zealand Banking Group Ltd. who forecast a 0.2 per cent gain, said ahead of the release. "The outlook for non-mining investment remains quite uncertain and household spending growth is likely to continue to be weighed down by soft household income growth."

The local dollar traded at 69.95 US cents at 11.37am in Sydney from 70.29 cents before the release.

Compared with a year earlier, the economy expanded 2 per cent in the second quarter, the report showed. The median forecast of economists was for a 2.2 percent rise.

General government spending rose 2.2 per cent in the second quarter, adding 0.4 percentage point to GDP growth, the report showed. Household spending advanced 0.5 per cent last quarter, adding 0.3 point to the expansion, it showed. Exports slumped 3.3 per cent, subtracting 0.7 percentage point from GDP growth while dwellings fell 1.1 per cent, subtracting 0.1 point.

The nation's household savings ratio rose to 8.8 per cent in the second quarter from 8.3 per cent in the first three months of this year, it showed.

"Most of the available information suggests that moderate expansion in the economy continues," central bank Governor Glenn Stevens said Tuesday after leaving rates unchanged. "Overall, the economy is likely to be operating with a degree of spare capacity for some time yet."

BLOOMBERG

      

Aussie dollar sinks below 70 US cents as China threatens growth

The Australian dollar dropped below 70 US cents for the first time in six years before a report forecast to show slowing domestic economic growth amid signs of a slump in China. 

PHOTO: BLOOMBERG

SEP 2, 20158:51 AM

[SYDNEY] The Australian dollar dropped below 70 US cents for the first time in six years before a report forecast to show slowing domestic economic growth amid signs of a slump in China.

The currency fell to as low as 69.98 cents Wednesday. It has dropped 4 per cent over the past month, the biggest loss among Group-of-10 currencies after the New Zealand dollar, as stocks slid.

"The Aussie is suffering from a more risk-averse global backdrop and a continuing weak China story," said Imre Speizer, a senior market strategist at Westpac Banking Corp in Auckland. "Risk currencies should suffer in this climate including the Aussie and kiwi."

Australia's currency fetched 70.12 US cents as of 9.02am in Tokyo from 70.19 in New York on Tuesday. The kiwi slid 0.1 per cent to 63.29 cents.

China's official Purchasing Managers' Index dropped to 49.7 for August, the weakest in three years, a report showed on Tuesday. Numbers below 50 indicate contraction.  The Australian economy probably expanded 0.4 per cent in the three months ended June 30 from the first quarter, when it grew 0.9 per cent, a report on Wednesday is forecast to show, according to economists in a Bloomberg survey.

Reserve Bank of Australia Governor Glenn Stevens and his board kept the cash rate at a record-low 2 per cent on Tuesday, as predicted by markets and economists following reductions in May and February.

BLOOMBERG

    
 

China sets deadline for clean-up of grey market margin financing

China's securities regulators have urged brokerages to clean up "grey market" margin lending by the end of September, the China Business News reported. 

PHOTO: BLOOMBERG

SEP 2, 20159:58 AM

[SHANGHAI] China's securities regulators have urged brokerages to clean up "grey market" margin lending by the end of September, the China Business News reported on Wednesday, as Beijing relentlessly pursues steps to back-stop the country's tumbling stock markets.

The crackdown targets both new and existing businesses, but for some brokerages whose clients have borrowed massively in the grey market, the deadline can be pushed back to the end of October, the newspaper said, citing unnamed sources.

Margin loans are money investors borrow to buy stocks, and regulators have warned that any such loans extended in the unregulated grey market, outside the brokerage system, are illegal.

China's securities association estimated in June that there were about 1 trillion yuan (S$221.9 billion) worth of grey market margin loans extended via the industry's three mainstream stock trading systems.

While unregulated margin business is seen as a risk to the financial system, the clampdown could choke off a source of liquidity to markets still struggling to stand on its feet.

REUTERS