Japan’s economy slows more than estimated in Q3 |
- Japan’s economy slows more than estimated in Q3
- Asian shares advance on China trade, falling yen
- Netanyahu missing Mandela memorial for cost reasons
- Let’s talk about hikes
- Meulensteen enjoys first win as Fulham boss
- The Malay proletariat
| Japan’s economy slows more than estimated in Q3 Posted: 08 Dec 2013 05:00 PM PST
Gross domestic product expanded an annualised 1.1 per cent from the previous quarter compared with a preliminary reading of 1.9 per cent, the Cabinet Office said today in Tokyo. The median of 25 estimates in a Bloomberg News survey was for a 1.6 per cent increase. Growth may rebound this quarter and in the first three months of next year as consumers splurge ahead of a sales-tax increase in April that will drive down spending. Abe has urged companies to raise workers wages as he bids to reflate the world's third-largest economy, praising Toyota Motor Corp. and Hitachi Ltd. for pledging to help in the effort. "The slowdown in growth could be temporary," Kohei Okazaki, an economist at Nomura Securities Co., said before the report. "Japan's economy will probably regain momentum toward the end of March as last-minute demand before the sales-tax increase will provide a tailwind for consumption." The cabinet last week approved an ¥18.6 trillion (RM582 trillion) economic package to cushion the blow from the 3-percentage-point sales-tax bump next April. The measures that includes ¥5.5 trillion in spending are projected by the government to boost real GDP by about 1 per cent and create about 250,000 jobs. Japan's economy is projected to grow an annualised 3.6 per cent this quarter and 4.8 per cent in the January-March period before contracting 4.5 per cent in the second quarter of 2014 after the tax rise, according to a separate Bloomberg News survey. — Bloomberg  |
| Asian shares advance on China trade, falling yen Posted: 08 Dec 2013 04:48 PM PST
Both the dollar and the euro extended their gains on the yen, with the single currency hitting a five-year high in what should be a boost to Japanese exports, profits and stocks. A Reuters poll found confidence at Japanese manufacturers rose for a second month to a three-year high in December, adding to the evidence of steady recovery in the world's third-largest economy. The Nikkei share index jumped 1.8 per cent and was fast approaching last week's peak at 15,794. South Korean stocks added 1 per cent and MSCI's broadest index of Asia-Pacific shares outside Japan gained 0.2 per cent. While Friday's solid US jobs report may have brought forward the day when the Federal Reserve starts tapering its asset buying, the figures also suggested the economy was recovering well enough to withstand the move. A total of 203,000 jobs were added in November, while the unemployment rate dropped three-tenths of a percentage point to a five-year low of 7 per cent. "Markets are trading like they were well positioned for strong data, and would actually be relieved if the Fed tapers in December and so removes the tapering timing uncertainty," said Alan Ruskin, global head of FX strategy at Deutsche Bank in New York. "That equities are this strong is a clear signal to the Fed that tapering will not do too much damage to risk appetite." On Wall Street, the Dow Jones industrial average ended Friday with a gain of 1.26 per cent, while the S&P 500 put on 1.12 per cent. Treasuries also proved resilient, with 10-year yields settling back at 2.86 per cent after a brief spike to 2.93 per cent immediately after the jobs report. The Fed has also had some success in convincing investors that tapering is not tightening, and that interest rates will remain low for a long time to come. Fed funds futures are not fully priced for a hike until the very end of 2015 , while yields on two-year Treasuries have held around 30 basis points for weeks now. Yen skids The improvement in risk appetite knocked safe havens like the yen, lifting the US dollar to ¥103.07 early today and near last week's highs around 103.37. The euro had shot up to ¥141.29, territory not visited since October 2008, while also making ground on the US dollar. It briefly touched US$1.3747 early today before edging back to US$1.3705. The common currency has been underpinned by rising short-term interest rates after the European Central Bank dampened hopes for an imminent easing move. Aiding sentiment in Asia was a set of robust trade numbers from regional powerhouse China. China's exports came in well above forecasts in November, rising 12.7 per cent from a year earlier, while imports rose 5.3 per cent. "The strength is likely supported by the recent improvement in global manufacturing activity, as evidenced by the strong PMI prints in major advanced economies," wrote analysts at Barclays in a note. That should be positive for many commodities with China importing a record amount of iron ore in November, while oil imports rebounded. Prices for the steel-making mineral have been surprisingly firm around US$139 (RM447.50) a tonne recently, good news for Australia as it is the country's single biggest export earner. That helped the Australian dollar nudge ahead to US$0.9105 early today, well up from Friday's lows around US$0.8989. US crude oil futures were trading 4 cents firmer at US$97.69, having surged more than 5 per cent last week. Brent edged up 2 cents to US$111.63 a barrel. Gold has not been so fortunate, with the metal stuck at US$1,227.46 and only just above five-month lows. — Reuters |
| Netanyahu missing Mandela memorial for cost reasons Posted: 08 Dec 2013 04:44 PM PST
Netanyahu had notified the South African authorities that he would fly in but cancelled his plans at the last minute due to the costs involved ― around US$2 million (RM6.4 million) for his transport and security alone, public radio and the Haaretz daily reported. "The decision was made in light of the high transportation costs resulting from the short notice of the trip and the security required for the prime minister in Johannesburg," Haaretz reported. The Israeli leader has been in the spotlight recently with revelations that taxpayers dished out almost US$1 million last year to maintain his three residences. The media highlighted a bill of US$23,000 for water to fill a swimming pool at his villa in Caesarea in the country's north. More than 50 heads of state and government have confirmed their intentions to travel to South Africa to pay their respects to the anti-apartheid hero who died last Thursday, South Africa's foreign ministry has said. US President Barack Obama and his wife Michelle will be among 80,000 people attending a vast memorial service Tuesday in the Soweto sports stadium that hosted the 2010 World Cup final. The commemorations will culminate with Mandela's burial on December 15 in Qunu ― the rural village where he spent his early childhood. Palestinian president Mahmud Abbas has announced that he will attend Tuesday's memorial service. Israeli leaders have paid warm homage to the former South African president who died after a long illness at the aged of 95. Netanyahu paid tribute to Mandela as "a man of vision and a freedom fighter who disavowed violence." But some commentators have noted that Israel maintained close relations with the apartheid-era regime until the United States said the ties could threaten Washington's generous annual military aid to the Jewish state. After his release from 27 years' incarceration in 1990, Mandela, who first visited Israel and the Palestinian territories in 1999, was an ardent supporter of the Palestinian cause but also a firm believer that Israelis would ultimately take the path of peace. "In my experience I have found Jews to be more broadminded than most whites on issues of race and politics, perhaps because they themselves have historically been victims of prejudice," Mandela wrote in his 1994 autobiography. South African Jews played a prominent role in the struggle against apartheid, among them late communist leader Joe Slovo, who headed the ANC's military wing. ― AFP |
| Posted: 08 Dec 2013 04:38 PM PST
In the past two weeks, we have been reading, hearing (and will soon be feeling) the impact of escalating costs. The hubbub started when the Selangor legislative assembly passed a 268 per cent salary hike for speaker Hannah Yeoh (RM22,500). Mentri Besar Tan Sri Abdul Khalid Ibrahim also received a salary increase (RM29,250 a month) followed by deputy speaker Nik Nazmi Nik Mat (RM15,750). Assemblymen in the state also received a share of the pie with each now making RM11,250 per month. The salary hike in Selangor did not go down well with certain quarters with cries on how Yeoh and Khalid's salaries topped Datuk Seri Najib Razak (RM22,826) and Tan Sri Muhyiddin Yassin's (RM18,168). News on escalation of salaries continued as Penang announced it would also increase the salaries and perks of elected representatives to RM11,500. Johor plans to follow suit although the quantum has yet to be decided. The salaries of our MPs, dubbed as "the lowest paid in the world", are also expected to be reviewed next year after a proposal for a salary hike was shot down last year. Our MPs presently receive RM6,508.59 month and a RM200 daily meeting allowance while their counterparts in the UK are expected to make £74,000 (RM391,077) annually from 2015. Let's move on to the hikes that affect mere mortals like you and me. It was announced last week that the electricity tariff will be increased by 15 per cent in Peninsula Malaysia and 17 per cent in Sabah and Labuan next month. The silver lining? Seventy per cent of consumers in the peninsula and 62 per cent in Sabah and Labuan will not be affected as there will not be a tariff increase for consumers who use less than 300kWh a month. This, according to Energy, Green Technology and Water Minister Datuk Dr Maximus Johnity Ongkili, applies to 4.56 million consumers in the peninsula and 260,000 consumers in Sabah and Labuan. I rushed home to check my TNB bill, hoping I would be part of this privileged group, only to be left disappointed as my monthly usage averages between 600KWh and 700kWh. I checked last year's bills when we had been frugal and even then, the usage was between 380 and 450 KWh. There has also been news of hikes in toll rates. Works Minister Datuk Fadillah Yusof had in a report recently said the government would decide by this month if it plans to continue or do away with compensation paid to highway operators. Fadillah said while RM400 million had been allocated under Budget 2014 to pay the concessionaires, he urged the public to accept changes as the government could gain more than RM400 million in unpaid compensation and the funds could be used for other road projects. There are 29 tolls in the country and a list of new toll rates have already been circulating on social media sites. According to the list, my daily toll charges on the Ampang-Kuala Lumpur Elevated Highway will cost RM5 a day instead of RM3. Public transport conglomerates are also requesting an urgent meeting with the Land Public Transport Commission (SPAD) as they feel it is high time for a fare review of rail services which use electricity (namely LRT, Monorail, KTM and ERL) in light of the increase in electricity tariffs. SPAD CEO Nur Ismal Kamal had in a report said: "We are studying all fare structures in the public transport sector. We will listen. We will study their proposal for a special electricity rate and probably will support it since, after all, the public transport companies are providing service to the masses." All these come barely weeks after local councils in the Klang Valley, Penang and Perak announced assessment rates and business licence fees would be increased. And Pakcik Rusli's words ring in my ears. Rusli, a regular at the mamak restaurant I patronise, had during our teh-tarik session said: "Gula, minyak, elektrik, tol, cukai pintu, LRT semua naik … gaji kita pula bila nak naik?" With a huge sigh, I replied: "Entahlah pakcik…" * This is the personal opinion of the columnist. |
| Meulensteen enjoys first win as Fulham boss Posted: 08 Dec 2013 04:32 PM PST
Steve Sidwell put the home side in front in the 21st minute when he scored against his old side after lofting the ball over the advancing Brad Guzan. Fulham, who previously hadn't scored two goals at home all season, then doubled their lead through a controversial penalty nine minutes later. Alex Kacaniklic broke clear and charged into the box where he appeared to make the initial contact with Villa's Leandro Bacuna. But the referee Mike Dean awarded a penalty and Dimitar Berbatov, after selling Guzan a dummy, rolled the ball into the bottom corner. Victory saw Fulham, beaten 2-1 by Tottenham in Meuelensteen's first game in charge on Wedenesday after he succeeded fellow Dutchman Martin Jol, climb one place into 18th spot but remain in the relegation zone. However, their tally of 13 points left them level with London rivals Crystal Palace and West Ham, the two clubs either side of them in the table, and in the bottom three on goal difference alone. Sidwell said Fulham were responding well to the influence of Meulensteen, who oversaw the midweek 2-1 defeat by Tottenham Hotspur. "We've tried different formations since he's took charge," he told Sky Sports. "There's versatility in the squad, we all put in a shift and hopefully it's working now." Meanwhile Fulham captain Scott Parker praised the work of Berbatov, who had a hand in both goals. Berbatov has been linked with a move away from Craven Cottage but Parker made it clear his team-mates wanted the "exceptional" former Manchester United striker to stay with west London side Fulham. "We all know the quality he has," Parker said. "He was exceptional again today (Sunday) and was on Wednesday." Asked about the importance of the result, Parker replied: "Massive. We all knew how important today was, we put in a shift and got the three points." Bottom-of-the-table Sunderland are now five points adrift at the foot of the table. Villa's defeat means both Swansea and Hull will have the chance to leapfrog them into the top half of the table when they meet at the Liberty Stadium today. — AFP |
| Posted: 08 Dec 2013 04:30 PM PST DEC 9 — For a country where communism, and socialism to a lesser degree, are pretty much equal to the word terrorism, it is not surprising that the head of police feels compelled to threaten a columnist with seditious tendencies for an article that infers that there are double standards in who gets into trouble for being a follower of communism. But something strange is at work here. To illustrate, take this as a layman's definition of why communism or socialism came about. Society is unjust because the rich will never willingly help the poor, therefore we need to find a way to force the rich to help the poor. Or, in the words of Malcolm X: "You show me a capitalist, and I'll show you a bloodsucker". Now substitute "rich" and "capitalist" with Chinese, and "poor" with Malay, and you have the whole rationale of official government policy in Malaysia. So, Society is unjust because the Chinese will never willingly help the Malays, therefore we need to find a way to force the Chinese to help the Malays. Or, "You show me a Chinese, and I'll show you a bloodsucker". In one stroke redistributive justice between economic classes as the cornerstone of socialism is turned into redistributive justice between races as the cornerstone of Malaysian policy. It also justifies affirmative action for the majority by equating the class notion of poor into a racial notion of poor. Poor people are Malays and the rich Chinese, changing what was essentially a definition of economic class into one sweeping racial generalisation. Half a century ago, there were merits to this argument. By casting the argument in these terms, it allowed the powers that be to disavow the nasty elements of communist dogma such as revolution and the overthrow of religion as a part of the political construct. It also co-opted the basic redistributive aims of socialism into a Malaysianised racial construct under the ambit of official policy allowing for capitalism and a market economy to become the sole preferred option for the country. It allowed the government to go after the communists, appease the capitalist classes and reassure the largely poor Malays to believe that their emancipation would come through a government formulating policy that would be primarily concerned with their uplift. To come back to the present, this is why the recent demonisation of communism and socialism as represented by Parti Sosialis Malaysia is not so much about their basic arguments towards a fairer society, but because of them ignoring the racial angle so dear to the current dispensation. Especially after the results of the last general election, there is a marked shift away from 1 Malaysia to a Ketuanan Melayu stance. Even the normally inclusive Youth minister was quoted as asking for the private sector to appoint more Malay CEOs, in the wake of Malay Petronas contractors, Malay advertising agency chiefs and the ever willing Perkasa's calls for all kinds of props for the Malays. The anachronism is not so much in that these overtly racial preferences are gaining currency among the ruling coalition, but that they are being propagated by and largely for the Malay elites. As always, it is the proletariat or working classes of all races that will have to deal with the post-election round of fuel, electricity and sales tax increases. In the face of an increasingly complex globalised world, the challenge is not so much as to which race gets what, but whether the economic cake in the future will be big enough for the poor to get any help at all. The current state of the education system and the obsession with quotas of all kinds offers a vision of society that is hell bent on squabbling over the present with scant regard for an increasingly difficult future. Market Socialism as exemplified by the Chinese experiment in theory offers an elegant combination of redistributive justice in a capitalist context that is worthy of analysis. That going down the path of race-based redistribution has not worked for Malaysia is evident to all but the most ardent Umno supporters. Malays are still the majority of the poor and the least exposed to world-class education, offering an even dimmer picture for their future. The struggle to becoming an egalitarian developed country living in social harmony can only begin if the focus shifts from racial preferences to breaking down the disparities between economic classes by lowering the GINI co-efficient. Helping the poor to uplift themselves just because they are poor and not because of their race is not the equivalent of a communist revolution. It is still the majority race that will benefit the most. The greater good needs to be redefined from the Malay good to the good of the economically disadvantaged. A more cohesive society will be the result of an inclusive approach to the welfare of the poor, not because of the formation of a token council on national unity. Socialism is not the problem defining Malaysia today, official racism is. * This is the personal opinion of the columnist. |
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