China raises rates again, more to come

Saturday, 25 December 2010 23:00

BEIJING: China's central bank raised interest rates on Saturday, Dec 25 for the second time in just over two months, underscoring concerns that inflation may be entrenched and swift action is needed to get price pressures under control.

The intensification of policy tightening also reflects the government's belief that the economy is fundamentally in a good shape.

Below are some implications what the latest move means for monetary policy outlook and financial markets.

CHRISTMAS SURPRISE

The rate rise shows China's top leaders have the task of taming inflation at the top of their agenda, as they had signaled in November, when they said they would intervene to control prices if needed.

Such language, alongside Beijing's official switch of its monetary policy to "prudent" from the previous "moderately loose" in early December, had laid market expectations for tighter policy.

But investors were not sure if the People's Bank of China (PBOC) would move this year given it only just raised banks' reserve requirements on Nov 19, ahead of data which showed inflation at a 28-month high of 5.1 percent.

The PBOC's Christmas Day rate rise is characteristic of its tendency to surprise investors with policy changes when they least expect it.

The move came amid tentative signs that price pressures were spreading beyond food and inflation and could be more stubborn than authorities had expected.

China's real interest rates are deep in negative territory. The one-year benchmark deposit rate is only 2.75 percent after the latest climb, well below November's inflation of 5.1 percent, highlighting the risk that price expectations may spin out of control.

All said, there have also been dovish signals from the government in recent days. Notably, it has raised its 2011 inflation target to 4 percent from this year's 3 percent.

RATE RISE CYCLE

Though announced by the central bank, the decision will have received approval from the highest echelons of power. Once a consensus has been forged in Beijing to raise or cut rates, past experience shows that moves often come in bunches.

This is the second rate rise in the current tightening cycle (the first was announced on October 19) and analysts think that another 50 bps of increases are on the way over the next year.

The PBOC made clear on Friday that it will deploy a range of policy tools to head off inflationary pressures and asset bubbles.

Interest rates are just one item in China's toolkit for mopping up the liquidity that is at the root of the country's inflation problem. Banks' reserve requirements and lending quotas are crude but effective shovels for removing cash from the economy as well.

So far, the PBOC has dragged its feet on jacking up rates, relying mainly on quantitative tightening measures, notably banks' reserve requirement ratio (RRR) and lending restrictions, which are less likely to dampen growth in the economy.

The PBOC has increased RRR six times this year but only lifted interest rates twice.

Some analysts thought China should have raised rates earlier in the year when the country was growing at a double-digit annual pace. But officials were worried at the time about sluggish external demand and uncertain about how the domestic economy would cope when government stimulus was withdrawn.

The view from Beijing now is that the economy has built up a momentum solid enough of its own and tightening is needed to keep it on a sustainable path of growth.

LIMITED MARKET IMPACT

Since the move was relatively mild, there could be a relief rally when the Chinese stock market opens on Monday.

After all, the market had already priced in more rate rises, with the main index in Shanghai down nearly 10 percent since mid-November.

Still, the specter of more tightening will hang over the market, limiting any gains. The government is determined to keep inflation under control, indicating there will be more tightening in the coming year.

The rate rise may suggest that the central bank is less concerned about hot money inflows, and is more willing to let the yuan appreciate at a faster pace and use the currency as another lever to rein in inflation.

In global markets, tighter Chinese policy could fuel investor concerns that growth in the world's second-biggest economy may falter, undermining stocks, commodities and high-yielding currencies.

But many analysts say China's resilient economy can withstand higher rates and they are a good thing for the country in the long run as they prevent the economy from overheating. - Reuters

PDRM Announcement!

PDRM - ANNOUNCEMENT

Please be assured that the 50% discounts are still applicable after 15th Dec 2010.

Effective 1st December 2010, PDRM is offering an incentive on compound rates for all types of
traffic summons issued –

All summons issued on or before 30th November 2010 :
A rate reduction from the original compound
All summons issued after 30th November 2010 :
Summons settled within 15 days will be offered a 50% incentive from the original compound
Summons settled within 16 to 30 days will be offered a 30% incentive from the original compound
Unsettled summons within the 30 days ARE NOT entitle for an incentive and will be immediately black listed - from myeg web

Japanese investments to pour in soon

A NUMBER of fresh Japanese investments are expected to pour into Malaysia soon, covering several sectors.

Although no specific value was mentioned and to which sectors the potential investments would be made, Japanese Ambassador to Malaysia Masahiko Horie said the investments will help gear up Japan's position as the number one foreign investor in this country.

"The investments are coming soon (early 2011). I am, at the moment, busy preparing for them," Horie told Business Times in Kuala Lumpur yesterday.

Trade between Japan and Malaysia in 2009 was worth RM100 billion and Horie expects it to increase this year, backed by the improving economic environment.

Earlier, Horie was briefing reporters on the increasing interest of Japanese retirees in Malaysia for their second home under The Malaysia My Second Home.

He said Malaysia is at the top of the list among the 10 countries with 16.6 per cent, beating Hawaii, Australia, Thailand, New Zealand, Canada, the Philippines, Indonesia, Spain and the US.

"Malaysia has been at the top since 2006 and we expect it will continue to be that way at the moment," he said.

Horie said there are currently 1,500 Japanese retirees who opt for the second home programme in Malaysia and expects the figures to rise by 10 per cent this year.

"Out of the 400,000 Japanese nationals that visited Malaysia in 2009, a total of 160,000, or 40 per cent, came as tourists," he said.

He cited eight factors that contribute to the rising interest among Japanese in Malaysia which include climate, political and social stability, warm weather, distance and multi-racial society.

Horie said with AirAsia X flying to and from Japan and Malaysia beginning December 9 and Malaysia Airlines opening up flight routes directly to Haneda Airport which is much nearer to Tokyo than Narita Airport, human traffic between the two countries will rise. - www.btimes.com

Rail project: MMC, Gamuda, Govt to team up

Gamuda Bhd and MMC Corp, two Malaysian construction companies, may team up with the government to help build a passenger rail network in Kuala Lumpur, a Gamuda executive said.

Work on the project may start in July, Gamuda group managing director Lin Yun Ling told reporters in Shah Alam, near the capital. He didn’t elaborate.

The rail project is among the US$444 billion of private sector-led projects identified by the Malaysian government to spur investments and accelerate growth in Southeast Asia’s third-largest economy. Besides the rail network, the plan includes developing a nuclear energy industry and a shopping district to rival Singapore’s Orchard Road.

Shares of Gamuda, a construction and property group based in Petaling Jaya, outside the Malaysian capital, climbed 1.6 per cent to RM3.83 at 11:45 a.m. in Kuala Lumpur trading. MMC, a power and construction company based in Kuala Lumpur, slid as much as 1.1 per cent to RM2.79.

Gamuda and MMC, which proposed the mass-transit system, will likely be the master planners of the project if they offer the best pricing, Second Finance Minister Ahmad Husni Hanadzlah said Nov. 11.

Qatar, Vietnam

Prime Minister Najib Razak said in October the country will start on a mass rail project in the capital in early 2011, expected to attract RM40 billion (US$12.8 billion) in private-sector investment.

Azharuddin Nordin, general manager of the group managing director’s Office at MMC, wasn’t available to comment as he was in a meeting.

Gamuda also plans to bid for a mass rail network and other infrastructure project in Qatar, the host of soccer’s World Cup in 2022, Lin said. The company expects revenue of RM1 billion from its property business in the year ending July 31, 2011, he said.

Property sales may reach RM5 billion over the next two years, with projects in Vietnam contributing as much as RM3 billion, Lin said. -- Bloomberg

Australia, Singapore stock exchanges plan merger: report

SYDNEY (AFP) - – Singapore's stock exchange is preparing to launch a takeover of its Australian counterpart to form a 14 billion dollar (13.8 billion US) alliance, a report said Saturday.

The Singapore Exchange is expected to announce a 6 billion dollar takeover bid for the sharemarket operator Australian Securities Exchange (ASX) on Monday, The Australian newspaper said without citing sources.

The ASX could not be contacted Saturday but ahead of the weekend it requested a two-day trading halt on its shares, saying "a party has recently re-activated discussions with ASX concerning a possible business combination".

"ASX does not have any information to disclose at this time but has observed an increase in the ASX share price today," it said in a statement on Friday.

A tie-up between the Australian and Singapore stock exchanges, which have market capitalisations of some 6.1 billion US dollars and 7.9 billion US dollars respectively, would require government approval.

But a merger between the Australian and Singapore exchanges would be in line with the global trend towards consolidation between exchanges, former Merrill Lynch Australia chief executive Greg Bundy told The Australian.

"Singapore and Australia are the most progressive of the exchanges in this time zone, they are the market leaders, and it could be they are getting together to pre-empt the involvement of Japan and Hong Kong, both of which have had their issues," he said.

Etiqa on Track to be the Leading Insurance & Takaful Organization in Malaysia

Etiqa Insurance & Takaful is on track to be the leading insurance and takaful organization in
Malaysia by the end of this year. For its 2009/2010 financial year, Etiqa surpassed the
RM4.5 billion mark in top line premiums with a profit before tax of RM422 million.
“Etiqa has done very well this financial year. The last financial year was a difficult year for all
of us. However, we bounced back this year and have shown that there is still untapped
potential in the insurance and takaful market,” said Dato’ Aminuddin Md Desa, Chief
Executive Officer of Etiqa.
As a multichannel organization that covers both life/family and general, insurance and
takaful, Etiqa has something for everyone and easily accessible. “I am confident that we are
well on our way to becoming the leading insurance and takaful organization by the end of
this year. Etiqa has a multitude of channels and based on the achievements so far, each
channel is progressing at a pace that will position us as the leading organization in this
market,” added Aminuddin.
In terms of profitability, Etiqa recorded a growth of 29% in profit before tax, over the same
period last year. The topline premiums were generated through life/family takaful new
business which totaled 45.9%, surpassing the market growth by over 25%. The
general/general takaful business registered a growth of 16.1% compared to the industry
growth of 7.5%. Based on the achievement to date, Etiqa is well on track to meet its
aspirations for the 2nd half of this calendar year.
As for its position in the market, Etiqa maintained its number one position in the Life/Family
New Business category, the General insurance/takaful area as well as its pivotal position in
the takaful business where Etiqa Takaful holds a 44% market share. This also saw Etiqa
Takaful as the first takaful company to surpass RM100 million in profit before tax. Etiqa
Takaful was also recently named the “Most Outstanding Takaful Company” in the recent
Kuala Lumpur Islamic Finance Forum (KLIFF) Awards.
According to Aminuddin, there are several key reasons for this strong position. Being a
member of the Maybank Group is a key advantage for Etiqa. Etiqa on its own, is already a
financially stable organization, coupled with being a member of Maybank, it makes Etiqa
even more financially sound. Etiqa also has the advantage of being an organization with a
multitude of distribution channels. There are more than 26000 agents located throughout
Malaysia, a wide array of partners and strategic alliances, Etiqa branches in all major cities in
the country as well as access to Maybank’s 400 over branches nationwide.
The Etiqa brand and the people of Etiqa are also key to Etiqa’s success. “Etiqa is about
humanizing insurance and takaful. Etiqa is about placing people over policies. In everything
that we do, we try to make things as simple as possible for our customers as well as our
staff. There is too much bureaucracy and we are trying to cut through the red tape, to make
things easier and simpler to understand and execute,” said Aminuddin. In fact, in a recent
survey, the awareness of Etiqa was at 77%, which is a very decent feat for a brand which is
only in its 3rd year.
Aminuddin also stressed that Etiqa staff are instrumental to the success of Etiqa. “Our staff
are all guided by the Etiqa Way and through the Etiqa Way, they are constantly trying to
improve and simplify things for the customers. “I always believe that a happy worker is a
productive worker. And here at Etiqa, we have developed a culture that makes Etiqa a fun
and enjoyable place to work. And when people are happy, they are productive. Etiqa is
about loving your work and once that happens, the best always comes across,” he said.
“We always encourage our people to think Etiqa, to live Etiqa and to serve the Etiqa Way
and we are well on our way to developing a unique culture for Etiqa. A culture which is outof-
the-box for an insurance & takaful organization but very workable and palatable to both
our customers and our staff,” he added.
Aminuddin also added that in line with this new brand platform, a host of initiatives have
been developed, some of which have been implemented and some of which are in the
process of being implemented, to make things simpler and easier for Etiqa customers,
partners as well as staff. “When we first launched Etiqa, we made a difference through our
fast track claims for claims below RM2000, 30-day claims for stolen cars and bereavement
cash advance. However, the feather in our cap is our call centre, the Etiqa OneLine which
does not adopt the IVR. As a result, in line with the humanizing insurance and takaful brand
platform, you will never be attended to by a machine. There will always be someone to
attend to you, a real person and not just a voice,” said Aminuddin.

US economy 'adds 42,000 jobs in July'

AFP - Thursday, August 5

Jobseekers pictured at a career fair in Chicago in June. The US economy created more private jobs than expected in July but hiring has not been rapid enough to ease a severe jobless rate, payrolls firm ADP said Wednesday.

WASHINGTON (AFP) - – The US economy created more private jobs than expected in July but hiring has not been rapid enough to ease a severe jobless rate, payrolls firm ADP said Wednesday.

Some 42,000 private-sector jobs were created following a revised June number of 19,000, ADP said ahead of a key government report Friday that is expected to show unemployment already at 9.5 percent ticking up.

Most economists had expected 25,000 private jobs to be established in July, the sixth consecutive monthly increase in hirings.

But ADP warned that the private job increases so far this year had averaged a modest 37,000, "with no evidence of acceleration" as economic growth from a brutal recession threatens to stall.

The government will release the July employment report on Friday with most economists expecting non-farm payrolls to fall by 87,000 in July and the unemployment rate to edge up to 9.6 percent.

The ADP survey tracks only private-sector jobs, while the Labor Department's nonfarm payroll data, include government workers.

The private sector is forecast to have created about 82,500 jobs in July but government employment is believed to have fallen 169,500 as more temporary jobs disappeared -- the reason why economists expect the Friday report to be weak.

Temporary hiring for a government population census had peaked in May and "for this reason, Friday's figure... might be weaker than today's estimate for nonfarm private employment" in the ADP report, the payrolls firm said.

The ADP report gave a mixed picture of the jobs situation but the numbers were hardly encouraging.

It estimated private employment in the service-providing sector rose by 63,000 in July while that in the goods-producing sector declined 21,000.

Hiring in the manufacturing sector also decreased 6,000, the first slide in six months, the report said.

Large businesses, defined as those with 500 or more workers, saw employment remain flat while hirings among medium-size businesses, defined as those with between 50 and 499 workers, increased by 21,000.

Small-size businesses, defined as those with fewer than 50 workers, increased by 21,000.

Employment in the financial services sector, which has declined for more than three years, dropped 1,000, the smallest decline since June 2007.

Facebook deal means virtual 'credits' can be bought in shops

KUALA LUMPUR, July 8, 2010 (AFP) – Facebook signed a deal with a Malaysian company on Thursday allowing a virtual currency for online games and services to be sold at retail shops across Asia for the first time.

The social-networking giant teamed up with payment service provider MOL AccessPortal to allow customers to buy Facebook Credits, a virtual currency used to buy gifts and virtual goods in many games and applications on Facebook.

Many Facebook users prefer to buy physical cards that they can then use online as credit, and MOL's 500,000 outlets at 7-Eleven stores and cybercafes across the Asia-Pacific region will sell these cards.

Vaughan Smith, Facebook's business and corporate development director, said the company wants developers and website owners to provide content for the site.

"We want to make it very easy for people to make lots of money building on top of Facebook," he told reporters.

"What we want to do is create a virtual currency which makes it very simple and straightforward for our users to buy services when they are using games and services on Facebook."

The companies will also launch a Facebook Gift Card in Malaysia and Singapore on a trial basis before a global rollout.

Ganesh Kumar Bangah, head of MOL Global, which owns MOL AccessPortal, said that only two percent of people playing online games in Asia actually pay, 80 percent of which is through physical cards.

The Facebook deal is aimed at increasing this revenue.

Last December, MOL Global, which is controlled by Malaysian tycoon Vincent Tan, purchased online social networking pioneer Friendster for 38 million dollars.

SUMBANGAN ETIQA

7 Februari, 2010
ETIQA TAKAFUL SUMBANG EMPAT BUAH RUMAH KEPADA RUMAH
PENDIDIKAN AT-TOHIRIAH
Port Dickson – Etiqa Takaful hari ini menyerahkan empat buah rumah kepada Rumah
Pendidikan At-Tohiriah di sini, sekaligus menyediakan tempat kediaman untuk lebih daripada
60 orang anak-anak yatim, kanak-kanak kurang berkemampuan serta penjaga dan tenaga
pendidik mereka.
“Janji jenama Etiqa adalah menginsankan insurans dan takaful, di mana kami ingin
menjadikan semua urusan perniagaan takaful senang dan mudah untuk para pelanggan dan
orang ramai. Janji jenama ini digunapakai dalam semua aspek di syarikat ini, begitu juga
dalam program komuniti kami. Kami juga mahu menjadikan kehidupan lebih senang dan
mudah untuk mereka yang kurang berkemampuan dan memerlukan bantuan,” kata En
Shahril Azuar Jimin, Ketua Pegawai Eksekutif, Etiqa Takaful Berhad.
Etiqa Takaful menderma RM240,000 untuk membeli empat buah rumah yang kemudiannya
diubah menjadi asrama dan pejabat untuk Rumah Pendidikan At-Tohiriah. Memandangkan
kesemua anak-anak yatim dan kanak-kanak kurang berkemampuan menetap dan belajar di
rumah itu, Etiqa Takaful turut menghadiahkan beberapa rak buku serta bahan-bahan bacaan
dan alat tulis untuk membina satu sudut ilmu bagi kegunaan mereka.
Program sepanjang satu hari ini bukanlah hanya mengenai sumbangan berbentuk
kebendaan sahaja kerana lebih daripada 100 wargakerja Etiqa dari Kuala Lumpur dan
Negeri Sembilan turut hadir untuk beramah mesra dengan penghuni rumah ini melalui
pelbagai aktiviti seperti sesi berkenalan, sesi motivasi, acara sukan dan permainan. Satu
sesi gotong-royong turut dijalankan untuk menjadikan kawasan rumah itu lebih bersih dan
sihat untuk penghuni di situ dan untuk mengekalkan keadaan ini, Etiqa Takaful turut
menyumbang beberapa peralatan kebersihan kepada rumah tersebut.
Shahril menerangkan, ”Ini adalah salah satu aktiviti di bawah program Tanggungjawab Zakat
Korporat kami yang telah dilaksanakan selama beberapa tahun. Di bawah program ini, kami
menggunakan sebahagian daripada duit zakat tahunan kami untuk memberikan bantuan
terus dan segera kepada institusi-institusi yang benar-benar memerlukan bantuan kami.
Sejak program ini dimulakan, kami telah membantu lebih daripada 14 institusi dan rumah
anak yatim dan 1,500 anak-anak yatim dan keluarga yang kurang bekemampuan di seluruh
negara.”
Lebih daripada RM1.5 juta ringgit dibelanjakan setiap tahun melalui program ini dan bantuan
yang diberikan kepada institusi dan keluarga adalah dalam bentuk rumah-rumah baru,
asrama, bilik darjah, dewan makan, surau, dewan serbaguna, makmal komputer dan
infrastruktur yang lain. Bantuan juga diberi dalam bentuk kenderaan seperti van, komputer,
mesin jahit, peralatan permainan dan sukan, buku-buku, alat tulis dan lain-lain lagi.
Program ini menyaksikan lebih daripada 100 wargakerja Etiqa menjadi sukarelawan di
setiap institusi dan pusat yang menerima bantuan di seluruh negara seperti di Paya
Rumput, Melaka; Manjoi dan Sungai Siput, Perak; Permatang Pauh, Pulau Pinang; Merbok
dan Baling, Kedah; Kota Tinggi, Johor; Tumpat, Kelantan; Kuala Ibai, Terengganu; Tawau,
Sabah; Arau dan Kangar, Perlis dan banyak lagi.
Lebih daripada 250 orang tetamu telah hadir ke program hari ini termasuk orang ramai dan
juga wakil-wakil daripada pihak berkuasa tempatan.
“Kami percaya bahawa semua orang boleh memainkan peranan, tidak kira sekecil mana,
untuk membantu golongan yang memerlukan dan kurang berkemampuan untuk menikmati
kehidupan yang lebih selesa kini dan untuk masa hadapan. Kami berharap agar kanakkanak
ini akan dapat terus berkembang dan membangun untuk menjadi individu yang
berjaya supaya mereka pula dapat menyumbang kembali kepada komuniti dan menjadikan
dunia ini lebih baik dan bermanfaat,” tambah Shahril.

Malaysia Hindu wins custody row with Muslim spouse

KUALA LUMPUR, Malaysia – A Malaysian court Thursday granted an ethnic Indian woman custody of her child in a bitter dispute with her Muslim-convert husband, in a ruling that could ease religious minorities' worries about their legal rights.

Malaysia has a two-tier court system for family matters _ secular courts for non-Muslims, Shariah, or Islamic, courts for Muslims. But minority Hindus, Christians and Buddhists complain that cases that also involve a member of the country's Muslim majority are usually sent to Shariah courts, where the decisions typically go against the non-Muslims.

On Thursday, the secular High Court overruled a Shariah ruling and ordered that 2-year-old Prasana Diksa be handed back immediately to her mother, M. Indira Gandhi, said her lawyer, M. Kulasegaran.

The fact that the secular court even took the case was a breakthrough and could set a precedent across Malaysia, said another of her lawyers, A. Sivanesan.

"This is a landmark ruling. In the past, if one party is a Muslim, the civil court would have shut its door and refuse to hear the case. This is a breakthrough," Sivanesan said.

Gandhi's husband embraced Islam in March 2009 without her knowledge. He then took their youngest child away, and later allegedly used documents to convert all three of their children to Islam without her consent. However, the elder two children, aged 12 and 13, have remained with their mother throughout the dispute.

Ghandi's husband, Muhammad Riduan Abdullah, successfully sought custody of the three children in the Perak Islamic Shariah court, but Ghandi challenged the conversions and filed a lawsuit seeking custody in civil court.

"The judge said it is in the family's best interest that the toddler be returned to Gandhi as the two older children are with her," Kulasegaran said.

He said Justice Wan Afrah Wan Ibrahim also shot down arguments by lawyers from the state religious department that he has no jurisdiction to hear the case because it involved a Muslim. The judge declared that the civil court can hear such grievances because non-Muslims cannot seek remedy in Shariah courts, the lawyer said.

The conversion of children has been the subject of growing legal challenges by non-Muslims, who say they face discrimination by Muslims who comprise nearly two-thirds of Malaysia's population and dominate the government.

Perak Islamic authorities could not immediately be reached for comment on Gandhi's case.

Sivanesan said the court granted Muhammad Riduan the right to visit the children once a week. It also fixed April 2 to hear a bid by Gandhi to contest her husband's conversion of their children to Islam, he said.

Gandhi will lodge a complain with police if he refuses to hand over the 2-year-old, the lawyer added.

The government has pledged to tackle legal ambiguities related to religious conversions. Authorities recently said minors can no longer be converted without both parents' consent, but the decision has not been made legally binding.

In a high-profile case in 2007, a Hindu woman failed to persuade the civil court to bar her husband, who had embraced Islam, from converting their sons.-AP

Prudential buys AIG Asia for record 35.5 billion dollars

LONDON (AFP) - – Britain's Prudential on Monday agreed to buy the Asian arm of US peer AIG for 35.5 billion dollars in the insurance sector's biggest ever takeover but the share price crashed on concerns over funding.

Prudential is set to become southeast Asia's biggest insurer after the British firm agreed to pay the equivalent of 26 billion euros for AIA, making it the industry's biggest ever acquisition, according to Dealogic.

The deal allows AIG to repay the US government a huge chunk of debt while it also highlights a pick-up in cross-border takeover activity since the start of the year as the global economy recovers from its deep downturn.

"Today's Prudential deal to buy AIA, along with Merck's acquisition of Millipore and the recent Cadbury's sale to Kraft has raised optimism that mergers and acquisition activity could continue to grow," said analyst Joshua Raymond at London traders City Index.

Prudential's deal, which will see the group double its market value, comes just one day after German pharmaceutical giant Merck KGaA agreed to buy US biotechnology firm Millipore Corporation for 7.2 billion dollars.

Just one month ago, US group Kraft Foods snapped up British confectioner Cadbury in another multi-billion-dollar deal.

Prudential said that AIA represented "a unique and strategically compelling opportunity ... to create the leading insurer in South East Asia".

It added in a statement: "Prudential Plc has reached agreement with American International Group Inc. (AIG) on terms for the combination of Prudential and AIA Group Limited, a wholly-owned subsidiary of AIG.

"AIG will receive total consideration of 35.5 billion dollars, comprising 25 billion dollars in cash and 10.5 billion dollars in new Prudential shares and other securities."

The cash component will be financed through an underwritten share issue, the announcement of which sent Prudential's share price tumbling more than 12 percent on Monday.

"Today's share price fall is to be expected considering the expense of the deal and the subsequent ... (share) rights issue to help pay for it," Raymond said.

The takeover will transform Prudential into the world's top non-Chinese insurer by market capitalisation, ahead of major competitors Allianz and AXA.

"This transaction offers the opportunity to bring together two leading companies, positioning the combined group to capture the future growth opportunity in Asia," Prudential said in its statement.

"We believe the transaction will both amplify and accelerate our stated strategy to deliver value to our shareholders," it added.

Prudential on Monday also announced that it enjoyed record group sales across Asia during the final quarter of 2009.

Group chief executive Tidjane Thiam said that the region was the "most attractive opportunity in our industry today," partly because of the strong savings habits there.

"Asia is the engine of the group's future growth, particularly the fast growing economies in Southeast Asia," he said.

"Asia is complex, dynamic and exciting, and its economies differ significantly, with varying levels of economic development, from the OECD members, Japan and Korea, to the fast growing markets of Southeast Asia, such as Indonesia and Malaysia."

Sales in Asia already make up half of new contracts for Prudential across a number of countries including China, India, Indonesia, Malaysia and Thailand. The company also has a strong presence in Britain and the United States.

AIG, meanwhile, has been forced into giving up some of its assets after the company's near collapse in the depths of the financial crisis led the US government to bail it out to the tune of some 180 billion dollars.

The Wall Street Journal reported that some of the proceeds from the sale of AIA to Prudential were already earmarked for US government coffers.

World's most powerful atom smasher restarts: CERN

[A view of a superconducting solenoid magnet at the European Organization for Nuclear Research (CERN)...] A view of a superconducting solenoid magnet at the European Organization for Nuclear Research (CERN) near Geneva. Scientists have restarted the world's most powerful atom-smasher overnight, the European Organisation for Nuclear Research (CERN) said Sunday, as they launch a new bid to uncover the secrets of the universe.

GENEVA (AFP) - – Scientists have restarted the world's most powerful atom-smasher overnight, the European Organisation for Nuclear Research (CERN) said Sunday, as they launch a new bid to uncover the secrets of the universe.

"The LHC is on its way again. First beam of 2010 circulated in each direction by 04.10 CET (0310 GMT)," said CERN in a tweet on its website on Sunday.

The 3.9 billion euro (5.6 billion dollars) Large Hadron Collider (LHC) was shut down in December to ready it for collisions at unfathomed energy levels. It was run for a few weeks after being successfully revived from a 14 month breakdown.

The particle collider -- inside a 27-kilometre (16.8-mile) tunnel straddling the Franco-Swiss border near Geneva -- is aimed at understanding the origins of the universe by recreating the conditions that followed the Big Bang.

In the weeks before the technical shutdown in December, the collider achieved over a million particle collisions and accelerated proton beams to energy levels never reached before, according to CERN.

Collisions reached a world record energy level of 2.36 teraelectronvolts (TeV), already allowing scientists to gather data.

But CERN now wants to reach 7.0 TeV to try to recreate conditions close to the Big Bang, and run it at those levels for 18 to 24 months.

Subsequently the scientists aim to reach the LHC's design energy of 14 TeV, but only following another long technical shutdown in the second half of 2011.

Before the LHC experiment, no particle accelerator had exceeded 0.98 TeV. One TeV is the equivalent to the energy of motion achieved by a flying mosquito.

The LHC, a global effort, aims to resolve physics problems including "dark matter" and "dark energy", thought to account for 96 percent of the cosmos.

The scientists' Holy Grail is to find a theorised component called the Higgs Boson, commonly called the "God Particle", which would explain how particles acquire mass.

The experiment, the fruit of decades of experiments and research by physicists from around the world, has even attracted Hollywood in recent years with the fictional blockbuster "Angels and Demons". AFP - Monday, March 1

Former exec nabbed in multi-million ringgit porn racket

Thursday February 25, 2010

KUALA LUMPUR: A former telecommunications company executive whose life in the fast lane was fuelled by a multi-million ringgit pornography SMS racket, has been detained by the police.

The 34-year-old suspect who reportedly amassed RM11mil by operating the racket via his company, was picked up by a team of policemen from the Bukit Aman Commercial Crime Investigation Department at about 10pm on Tuesday.

It is learnt the man was with his family at their house in Putra Heights near Subang Jaya at the time of the arrest.

The arrest followed a police report filed last week against the multi-million ringgit racket.

Initial investigations revealed that the man had allegedly masterminded the sales of SMS which offered three-minute pornographic video clippings to subscribers.

It is understood that the man charged RM3 for each pornographic SMS which he sent to subscribers over the years, amassing millions of ringgit.

According to a police officer who declined to be named, although the suspect earned about RM4,000 a month, he owned a Porsche and BMW cars, purportedly bought with money earned through the sale of the porn SMS.

Police obtained a three-day remand order at the Jalan Duta Court Complex here yesterday to facilitate investigations.

The case is being investigated under Section 233 of the Communication and Multimedia Act 1998, that is, the improper use of network facilities or network service.

It is learnt that the suspect was suspended by a telecommunications company before he allegedly started the pornographic SMS racket. — Bernama

Usahawan Herba Maut 6 sekeluarga - Al-Fatihah

Accident bukan sesuatu yg kita rancang...

Public Mutual isytihar tiga daripada dananya

KUALA LUMPUR: Anak syarikat milik penuh Public Bank Bhd, Public Mutual Bhd, mengisytiharkan agihan bagi tiga daripada dananya.

Agihan kasar keseluruhannya adalah 8.0 sen seunit bagi Public Savings Fund, 0.75 sen seunit bagi Public Focus Select Fund dan 2.0 sen seunit bagi Public Islamic Enhanced Bond Fund.

Agihan yang diisytiharkan itu adalah bagi tahun kewangan berakhir 31 Disember 2009. Public Mutual adalah syarikat saham amanah swasta terbesar di Malaysia, dengan menguruskan 72 dana.

Ia mempunyai lebih 2.0 juta pemegang akaun dan sehingga 30 November 2009, nilai aset bersih dana yang diuruskan oleh syarikat itu adalah RM34.7 bilion. - Bernama

My Comment : Sila lihat CHART ( Harga Public Saving Fund semakin naik walupun selepas diisytiharkan dividen itu, ini membuktikan Kata-kata yg selalu menyebut biasanya lepas dividen harga Unit Amanah akan jatuh ternyata TIDAK TEPAT )