On Malaysian REITs, CNY new notes, Lowering food prices, Malaysian Economics & Moody’s DoJ probe
2015 Challenging for REITs
- Slow, steady income distribution but slower appreciation as most REITs worldwide declare 90% earning as dividends
- Negative impact with GST & lower domestic consumption in malls
- Expect more (selective) acquisitions in 2015
- http://www.thestar.com.my/Business/Business-News/2015/02/02/Challenges-for-Reits/?style=biz
Old Notes for CNY ang pau?
- BNM reducing number of new notes
- Claims 70% new notes re-deposited after CNY & Hari Raya
- Promoting “fit notes” instead of new
- http://www.thestar.com.my/News/Nation/2015/02/02/Give-out-old-bank-notes-this-Lunar-New-Year/
Malaysian Govt ask Traders reduce food prices
- Previously hike, now fuel prices dropped 56% to RM1.70 per liter
- FMM says will but slow due to prices affected by other factors too
- Eateries say suppliers should cut prices first
- http://www.thestar.com.my/News/Nation/2015/02/02/Reduce-food-prices-now-traders-told-No-excuse-as-fuel-costs-have-dropped-considerably-minister-tells/
S&P on Malaysian Economics
- OPR at 3.25% expected to remain into 2016
- Revised GDP forecase from 5.5% > 4.6% (2014) & from 5.4% > 5.0% (2016)
- Full set of APAC forecasts release est Mar 2015
- http://www.tradingeconomics.com/malaysia/forecast
- http://www.tradingeconomics.com/malaysia/interest-rate
US: Justice Dpmt Probing Moody’s
- Under investigation for issuing favorable grades on (toxic) mortgage deals (debt) prior to 2008 financial crisis
- Main Question: Did the credit ratings agency compromise standards to win business
- Previously S&P sued by DoJ in similar case in US$1.3bn settlement
- http://fortune.com/2015/02/01/the-justice-department-is-probing-moodys-over-mortgage-ratings/
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