news bits

World Bank President Robert Zoellick said on Wednesday the world had entered a new economic danger zone and Europe, Japan and the United States all needed to make hard decisions to avoid dragging down the global economy....Zoellick said European countries were resisting difficult truths about their common responsibilities, Japan had held off on needed economic and social reforms, and political differences in the United States were overshadowing efforts to cut record budget deficits. (Reuters)


Carl Weinberg, the chief economist at High Frequency Economics is very worried about Europe. His central forecast is that the debt crisis will lead Europe into a depression that will mean soaring unemployment, deflation and zero interest rates for the foreseeable future....Gold will offer the safest haven, according to Weinberg, who fully expects Europeans to move cash under their mattresses in early phases of this crisis...."The beneficiaries of this flight of cash out of Euroland will be the hot economies of Asia, notably China, India and Korea." said Weinberg. (CNBC)


Food prices could rise next year because an unseasonably hot summer likely damaged much of this year's corn crop....More expensive corn drives food prices higher because corn is an ingredient in everything from animal feed to cereal to soft drinks. It takes about six months for corn prices to trickle down to products at the grocery store. (AP)


All Malaysian gasoline stations will offer bio-diesel fuel by next year, Plantation Industries and Commodities Minister Bernard Dompok told reporters. (Bloomberg)

news bits

The hottest summer since 1955 in Iowa and Illinois is eroding yield prospects for corn and soybean crops in the U.S., the largest grower and exporter. Signs of diminished output appeared this week during a four-day, seven-state sampling of about 2,000 fields in the Midwest organized by the Professional Farmers of America, which will report its findings later today. A Bloomberg survey of 25 tour participants showed all expected the government to cut its corn-harvest forecasts and 21 predicted a reduction for soybeans. (Bloomberg)


World wheat production will be 0.4 percent higher than a July estimate at 677 million metric tons on better production in the European Union, Russia and China, the International Grains Council said yesterday. The EU estimate was increased 0.5 percent to 137.5 million tons. (Bloomberg)


The new head of the IMF on Saturday, Aug 27  called on global policymakers to pursue urgent action, including forcing European banks to bulk up their capital, to prevent a descent into a renewed world recession...."Monetary policy also should remain highly accommodative, as the risk of recession outweighs the risk of inflation," Lagarde said, adding that central banks should stand ready to jump back into unconventional policy actions if needed. (Reuters)


The U.S. won’t slip into recession after Federal Reserve Chairman Ben S. Bernanke said the central bank has more tools to support growth if needed, said Templeton Asset Management’s Mark Mobius....Mobius is positive on commodity stocks and expects higher raw-material prices as inflation accelerates...He is “pretty positive” about Southeast Asian equity markets, he added. “Looking at Southeast Asia, it’s Thailand and Indonesia.” (Bloomberg)

Faber favours Asia

According to a MarketWatch article, Dr.Marc Faber favours emerging market equities and corporate bonds for the long term, and also gold. 

"Faber's own stock portfolio is centered on dividend-paying Asian shares, particularly in Malaysia, Singapore, Thailand and Hong Kong. These include a variety of real estate investment trusts and utilities....he's also turned positive on Japanese banks, brokerages and insurance companies....Faber is convinced that the price of gold will continue rising and that any pullback is a buying opportunity."

news bits

The Pekeliling flats area, located along Jalan Tun Razak-Jalan Pahang is to be redeveloped. Now known as Tamansari Riverside Garden City, its developer Asie Sdn Bhd has awarded Mah Sing a contract to build properties for RM900 million. Asie expects to award two more contracts by year-end to build properties worth over RM1 billion. The project has supposedly been put on hold thrice (1976, 1997 and 2008.) (Source: Business Times)

Comment: I hope they look into the traffic congestion problem first.

The business outlook for shipping firms in Asia-Pacific remains weak because of continuing transportation supply exceeding demand. In a statement today, Standard & Poor (S&P) said high fuel prices and economic uncertainties, coupled with other factors such as overcapacity, would continue to hinder the recovery of the main shipping sectors in the region and globally. (source: Bernama)

Comment: This could be favourable for logistics companies.

Chief Minister Tan Sri Abdul Taib Mahmud said today that the Sarawak government hopes to attract at least RM200 billion in private investments for the Sarawak Corridor of Renewable Energy (SCORE) over the next 20 years. RM26.4 billion worth of investments in 13 projects have been approved so far.(source: Bernama)

Comment: This one is sweetener for coming elections or can really score big ?