The Star Online: Business
The Star Online: Business |
- FBM KLCI to range between 1,850-1,870 pts next week
- JPMorgan examining its relationship with domestic US banks
- Beats co-founder Iovine could e key Apple deal ingredient
| FBM KLCI to range between 1,850-1,870 pts next week Posted: 09 May 2014 07:47 PM PDT KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to consolidate sideways next week at between 1,850-1,870 points on interest rate jitters, the tension in Ukraine, a commodities dip and a risk-off vibe across most safe haven assets. Affin Investment Bank Vice-President/Head of Retail Research Dr Nazri Khan said the stronger than expected US jobs data had spurred the notion that the US Federal Reserve may pursue earlier monetary tightening and dampened down risk-taking sentiment "As for next week's theme, traders should accumulate trading service and resource stocks which did well last week as commodities recover and the ringgit depreciates," he told Bernama. Overall, Nazri said the local benchmark index is still in the process of consolidating from the February-April gain of 5.8 per cent, driven by rising defensive sentiment and lofty small cap valuation with sector rotation towards more blue chips, large cap oriented names. "While we do not expect the FBM KLCI to experience a 'bull trap' on current weakness, we believe Bursa Malaysia will benefit from regional dips, taking another stab above 1,870 points and resume its upside momentum. "This is despite being overbought over the last three months," he added. On a week-to-week basis, the FBM KLCI ended 2.6 points weaker on Friday at 1,866.72 points against the 1,869.08 points recorded the previous week. The Finance Index fell 48.46 points to 17,023.76 points, the Industrial Index dipped 7.57 points to 3,183.29 points, but the Plantation Index soared 89.73 points to 9,152.02 points. The FBM Emas Index declined 29.73 points to 12,903.73 points, the FBMT100 Index slipped 30.95 points to 12,552.18 points and the FBM 70 lost 93.61 points to 14,003.85 points. But the FBM Ace rose 30.64 points to 6,589.49 points. Weekly turnover dropped to 6.59 billion shares worth RM8.28 billion, from last week's 7.32 billion shares worth RM6.96 billion. Main market volume increased to 5.85 billion shares valued at RM7.77 billion from 5.22 billion shares valued at RM7.55 billion, recorded last Friday. The ACE market volume widened to 1.98 billion shares valued at RM468.45 million from 1.92 billion shares valued at RM378.62 million. |
| JPMorgan examining its relationship with domestic US banks Posted: 09 May 2014 07:33 PM PDT NEW YORK: JPMorgan Chase & Co may cut down on its domestic correspondent banking business, as it scans its relationship with several hundred of domestic correspondent banking clients, Wall Street Journal reported, citing people familiar with the matter. The report cited its sources as saying the bank started the review in January and is examining its relationship with domestic correspondent clients, for which it clears payments and processes other transactions. JPMorgan has stopped soliciting new business from its few hundred clients and has also stopped accepting new clients until the review is complete, the Journal reported, citing people familiar with the matter. It said the companies under review include Citigroup Inc <C.N> unit Banamex USA, according to the report. Banamex is already facing investigation by Mexico's National Bank and Securities Commission for fraudulent loans. JPMorgan and Citigroup could not be reached for comment outside usual U.S. business hours. (http://r.reuters.com/wyw29v)- Reuters |
| Beats co-founder Iovine could e key Apple deal ingredient Posted: 09 May 2014 07:30 PM PDT NEW YORK: When music producer Jimmy Iovine pitched his friend Steve Jobs on a streaming music service in 2003, the Apple founder was unconvinced. Now, 11 years later, Jobs' successor looks poised to pay generously for a more evolved version of that service, and to bring on board Iovine into the bargain, betting that he can bring Apple some of the same creative flair that has made him a legend in the music business. Iovine, CEO and co-founder of the Beats headphones and music streaming service Apple is close to buying for $3.2 billion, is best known as the co-founder of Interscope records, a rap music pioneer which has since branched out to include acts like Lady Gaga and U2. If he does join Apple, the 61-year-old producer could lend a hand to CEO Tim Cook and try to bolster its subscription music services - which have yet to catch fire - as well as at iTunes, which has seen growth in downloads virtually evaporate. A source familiar with the deal said Iovine would likely leave his record label and join Apple to run Beats, but it hasn't been determined if he would take on a greater role. It also isn't yet clear whether Beats would operate as an independent unit or to whom its executives would report. After working as a sound engineer for artists such as Bruce Springsteen, Iovine in 1989 co-founded Interscope, which became one of the largest U.S. music labels. It took a bet on rap music that was controversial at the time, given the music's explicit lyrics. The political uproar eventually prompted Time Warner having to sell the label. It was bought by Universal Music Group, in 1995. "He's one of these guys that bring intangibles," said Bill Werde, entrepreneur at Guggenheim Digital and former editorial director at Billboard magazine. "Sometimes you need a jolt of energy and Jimmy is certainly a guy who can provide that." In a Jan 2013 interview with AllThingsD, Iovine said he pitched a subscription service to Apple's Jobs around 2003, but the Silicon Valley icon was not keen on it right away. Still, Iovine is said to be have been close to Jobs and helped him broker deals to co-market products such as a U2-branded iPod and music videos by the rapper 50 Cent holding an iPod. Iovine founded Beats in 2006 with rapper Dr. Dre and its big, distinctive headphones found wide distribution, including in Apple stores. The brand launched a music streaming service earlier this year. It remains a fledgling venture although it has gotten attention for what some say is a unique ability to personalize music. Iovine met with Apple CEO Tim Cook in March 2013 to discuss the music service. Iovine's music industry relationships will be valuable to Apple because they could make licensing for a future streaming service easier. The company's iTunes' revenue, which includes apps and books in addition to music, has decelerated, with growth dropping below 10 percent in the most recent quarter, according to BTIG Research. In his own words, Iovine has said he has been "shocked at how culturally inept most consumer electronics companies are." "Subscription needs a programmer," he told AllThingsD. "It needs culture. And tech guys can't do that. They don't even know who to hire. They're utilities."- Reuters |
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