
Ringgit strengthens on weak US jobs report
At 6pm, the local note rose to 4.2350/2385 versus the US dollar from Friday's close of 4.2750/2815.
SPI Asset Management managing director Stephen Innes said that last Friday's nonfarm payrolls data showed a marked slowdown in US job creation, prompting traders to sharply increase bets on monetary easing. — Bernama
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The Star
21 minutes ago
- The Star
Moscow ready to welcome arrival of Sultan Ibrahim for state visit
MOSCOW: Moscow is ready to welcome the arrival of His Majesty, Sultan Ibrahim, King of Malaysia who will begin his maiden state visit to Russia starting Tuesday (Aug 5) until August 10. Malaysian Ambassador to Russia Datuk Cheong Loon Lai said Sultan Ibrahim expressed hope that the meeting with Russian President Vladimir Putin on Wednesday (Aug 6) could open a new chapter in Malaysia-Russia bilateral relations. "His Majesty also expressed hope that the two leaders can hold productive discussions, especially on matters of mutual interest," he told Bernama here. Cheong said Sultan Ibrahim also admired the historical and technological values in Russia, and had even established many interactions with the country in the fields of trade and investment since His Majesty's reign as the Sultan of Johor. "His Majesty also shares the same interests as President Putin, such as horse riding," he said. This visit at the invitation of President Putin is considered historic and meaningful because it is the first state visit by a Malaysian Head of State to Russia since the establishment of diplomatic relations in 1967. Two locations for the visit in Moscow, namely the Russian Automotive Technology Development Center (Nami) and the Tochka Kipeniya Technology and Innovation Center, are also ready to welcome Sultan Ibrahim's arrival. "His Majesty will visit Nami to inspect and explore Russian automotive technology, particularly in the field of research and development. "This visit provides an opportunity for His Majesty to see first-hand the advancement of Russian technology given His Majesty's deep interest in the automotive industry," said Cheong. The visit to Tochka Kipeniya, he said, also provides an opportunity for Malaysia to explore innovative Russian solutions in the field of drone and robotics development through artificial intelligence (AI) applications for public use, security, defence, environment, space projects and biodrones. Earlier, Cheong attended a briefing session on the national celebration event at the Kremlin, the location of Sultan Ibrahim's official meeting with President Putin. Also present at the session were the Chief of Protocol, Ministry of Foreign Affairs Datuk Yubazlan Yusof, Chief of Government Ceremonies, Prime Minister's Department Datuk Rozainor Ramli and the Grand Chamberlain of Istana Negara Datuk Azuan Effendy Zairakithnaini. Sultan Ibrahim departed from the Royal Malaysian Air Force Air Base in Subang at 8.55am (Malaysian time) and is scheduled to arrive here on Tuesday. After Moscow, His Majesty is scheduled to travel to Kazan from August 8 to 10. Sultan Ibrahim ascended the throne as the 17th Yang di-Pertuan Agong on Jan 31 2024.- Bernama


Free Malaysia Today
an hour ago
- Free Malaysia Today
South Africa eyes new markets after US tariffs
South Africa's President Cyril Ramaphosa emphasised that safeguarding export industries is the government's primary concern. (AP pic) JOHANNESBURG : South Africa is seeking new markets in Africa and Asia as it negotiates with the United States over looming 30% trade tariffs, which could cost around 30,000 jobs, officials said Monday. Government ministers expressed frustration with the US over the tariff – among those due to take effect against several countries later this week – saying South African exports do not compete with US industry and were only a fraction of that country's total imports. The 30% tariff is the highest in sub-Saharan Africa and comes as diplomatic relations between South Africa and the US are in tatters over a range of domestic and international policies. 'Our foremost priority is protecting our export industries,' president Cyril Ramaphosa said in his weekly newsletter. 'We will continue to engage the US in an attempt to preserve market access for our products. We must also accelerate the diversification of our export markets, particularly by deepening intra-African trade,' he said. The US is South Africa's second-largest trading partner by country after China. The tariffs will in particular hit South Africa's agriculture, automotive and textiles sectors, officials said, although 35% of exports are exempted, including copper, pharmaceuticals, semiconductors, lumber articles and certain critical minerals. The impact on growth depends on various factors, including the sourcing of alternative markets, foreign minister Ronald Lamola said in a statement. He cited forecasts that the impact may shave 0.2% off growth, which was only around 0.1% in the first quarter of this year. The South African Reserve Bank last week warned that the US levy could cost 100,000 jobs, with unemployment already at more than 30%. But trade department director general Simphiwe Hamilton told reporters Monday their estimate was that approximately 30,000 jobs could be affected. South Africa 'no threat' In a bid to avert the high tariff, South Africa has offered to import US liquefied natural gas and some US agricultural products, as well as invest in its mining and metals-recycling industries. Pretoria is focused on negotiations for a new deal despite the 'very extreme provocation' on the part of the US, Lamola told reporters. The 30% tariff was 'inscrutable' considering that imports from South Africa only represented 0.25% of total US imports, the minister said. 'Moreover, South Africa poses no trade threat to the US economy or its national security,' he said, arguing the imports supported US industry and did not compete with it. An example was that South African agriculture exports were 'counter-seasonal' and so filled gaps in the US market without replacing domestic produce, he said. Pretoria's plummeting ties with Washington and failure to reach a new trade deal have been heavily criticised at home, including by some of the parties in the coalition government who have accused Ramaphosa and his team of diplomatic missteps. On top of disagreements over a range of issues, including South Africa's case accusing Israel of genocide in Gaza at the International Court of Justice, Washington in March expelled Pretoria's ambassador after he criticised Trump's Make America Great Again (MAGA) movement. In his newsletter, Ramaphosa said the government has established a support desk that will help exporters and producers explore alternative markets in the rest of Africa, Asia and the Middle East. It will also push forward with plans for a free-trade area for the African continent, he said. The US announced last week 15% tariffs on exports from several sub-Saharan countries, including the export-reliant small mountain kingdom of Lesotho, which had initially been threatened with 50% tariffs.


Free Malaysia Today
an hour ago
- Free Malaysia Today
Wall Street futures stabilise after Friday's rout
US S&P 500 E-minis were up 36.75 points, or 0.59% and Nasdaq 100 E-minis were up 177.5 points, or 0.78%. (AP pic) NEW YORK : Wall Street futures rebounded from last week's rout today, as hopes for steeper Federal Reserve (Fed) rate cuts surged after a surprisingly weak jobs report. A dismal US jobs report sent the S&P 500 tumbling to its steepest intraday loss in more than two months on Friday, with downward revisions for May and June compounding the blow. The bleak data did not just trigger the market selloff – it also sparked a dramatic rethink of the Fed's rate path. According to the CME FedWatch tool, traders now see an 85% chance of a September rate cut, up from just over 63% a week ago, as signs of a faltering labour market mount. By this year-end, markets are betting on at least two quarter-point cuts, about 60 basis points – a prospect that helped steady Wall Street in the aftermath. At 6.57am, US S&P 500 E-minis were up 36.75 points, or 0.59%, Nasdaq 100 E-minis were up 177.5 points, or 0.78% and Dow E-minis were up 238 points, or 0.54% The central bank's decision to keep rates unchanged last week drew immediate criticism from President Donald Trump, who has repeatedly threatened to fire chair Jerome Powell, arguing that rates should be much lower than they are. Adding to the intrigue, the surprise resignation of Fed governor Adriana Kugler has handed Trump an earlier-than-expected opportunity to reshape the central bank's leadership. 'It is expected that whoever Trump announces to replace the governor could then become the new chair when current chair Powell vacates his position next May,' Kathleen Brooks, research director at XTB, said in a note. In premarket trading, Tesla rose 1.8% after granting CEO Elon Musk 96 million shares worth about US$29 billion. Investor sentiment soured further last week as new US tariffs kicked in on dozens of trading partners and Trump signed executive orders slapping fresh import duties on countries like Canada, Brazil, India, and Taiwan despite their efforts to negotiate better terms. US factory orders data for June is due at 10am. Tomorrow's business activity report and Thursday's jobless claims figures are the only other key economic indicators in this data-light week. Atlanta Fed president Raphael Bostic will speak later in the week. After a big week for Big Tech earnings, companies from various sectors including Palantir, Eli Lilly, and Disney will report this week. Of the 330 S&P 500 companies that have reported earnings as of Friday, 80.6% have surpassed analyst expectations, the highest beat rate since the third quarter of 2023, according to data compiled by LSEG. Among early movers, Joby Aviation rose 5.3% after Bloomberg News reported that the company was exploring the acquisition of helicopter ride-share operator Blade Air Mobility. Blade Air's shares surged 16.4%. Chemours rises after reaching an agreement with New Jersey to resolve all environmental claims.