HWANGDBS Vickers Research said current steel prices are being supported by restocking activities, and while the prices of steel bars and rods of between RM2,200 and RM2,300 per tonne could dip at the end of the year although upcoming mega projects will help maintain prices in 2010.
“Although the timing of these mega projects is still fluid, we understand that packages of the more imminent low-cost carrier terminal and Pahang-Selangor water transfer projects are likely to be awarded by end-2009 and 2Q10, respectively,” the research house said.
With the current restocking activities improving steel demand, utilisation at most steel mills had risen since June 2009, with KINSTEEL BHD []’s upstream utilisation jumping to 100% from 50%, and SOUTHERN STEEL BHD []’s overall utilisation rising from a low of 50%.
It added that as a result of the improved utilisation, coupled with stronger steel prices, gross margins improved in 2Q09, with Southern Steel recording a 2% gross profit margin versus an 11% gross loss in 1Q09, while Kinsteel’s gross loss narrowed 33% quarter-on-quarter.
“We anticipate margins to continue to improve over the next few quarters, and foresee better earnings visibility in FY10-FY11F,” it said.
HwangDBS Vickers also said in addition to the government’s mega projects expected to deliver “meaningful new demand in FY10-FY11, the sector should benefit from a weaker US dollar versus the ringgit. It said between 60% and 70% of domestic scrap requirements, mainly denominated in dollar, and all iron ore were imported.
The research house also expected 3Q09 to show positive operating earnings compared to losses in 1H09, driven by margin improvement as a result of recovering steel prices and higher capacity utilisation, while the inventory holding period had also improved to three months from between four and six months at the start of the year. It said following that, both Southern Steel and Kinsteel had stronger cash flow positions.
Meanwhile, it said going forward, downside risks for steel players should be limited following the recovery in feedstock prices, with the international price for iron ore at stable levels for the past 10 months, and now hovering at an average of US$103/tonne (RM349).
The research house has upgraded Southern Steel and Kinsteel to buy from hold, with target prices of RM2.40 and RM1.30, respectively.
The target prices were based on 1.3 times net tangible asset (NTA), consistent with one standard deviation of the respective historical means. “At our target prices for Southern Steel and Kinsteel, they would be trading at 12.1 times and 13.7 times CY10F earnings,” added HwangDBS.
Friday, October 23, 2009
Kinstel
Lately i have been trying to search for the best warrant/call warrant. I prefer a "safe" trade. I searched through the top premium warrants list available on my trading platform and i found kinstel-wa.On 7 October 2009, i bought kinstel-wa as it was trading about 5% discount to its mother, kinstel. This mean it is better to buy kinstel-wa compared to kinstel. Besides, the expiry date was more than 2 years away. The gearing is around 1.5. I bought kinstel-wa at RM0.70.
I did not study much about kinstel fundamental as I think kinstel is a fundamentally good company. From the chart above, we can see that kinstel is trading side way at a thin volume compared to 3 months ago.
I expect kinstel to start jumping up as its volume start increasing.
Ok, good luck.
GOon
Genting Malaysia buys RM50.8m Wynn notes
Genting Malaysia Bhd has subscribed for US$15 million (RM50.85 million) worth of mortgage notes issued by the subsidiaries of Wynn Resorts Ltd as the former looks to further diversify away from its domestic turf.
“The notes represent a good opportunity for Genting Malaysia to expand its investment portfolio and enhance returns on its existing cash balances,” it said in a statement issued via Bursa Malaysia yesterday.
As of June 30, 2009, the casino operator had over RM5 billion cash and cash equivalents. Genting Malaysia said Wynn Resorts offered the notes as part of the latter’s private placement exercise.
The subscription of the notes came about four months after Genting Malaysia bought a 3.2% stake in the biggest operator on the Las Vegas Strip, MGM Mirage.
Wynn Resorts, a leisure and gaming corporation listed on Nasdaq, had on Oct 9, announced that its units, Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp would be issuing US$500 million worth of new 7.875% First Mortgage Notes due 2017.
Genting Malaysia said yesterday its unit, Resorts World Ltd, had completed the subscription to US$15 million nominal amount of the notes.
“With yield returns in excess of 8%, the investment generates an attractive return compared to what is currently attainable in the money markets or in other secured investments regionally, especially within the Genting Malaysia group’s core leisure and hospitality industry,” it added.
The gaming giant added that the notes were secured against quality gaming and entertainment assets in Las Vegas.
Genting Malaysia said the proceeds would be used by Wynn to settle some of its outstanding debts and for general corporate purposes.
It said the subscription to the notes was not expected to have a material impact on the net assets or earnings per share of the Genting Malaysia group for the year ending Dec 31, 2009.
Genting Malaysia also has investments in Singapore and Hong Kong-listed Star Cruises Ltd (SCL), its 19.58% associate company. The purchase of MGM earlier this year signalled that a global expansion is underway for Genting Malaysia and triggered speculation that it could also buy out MGM’s stake in its Macau unit.
Wynn also has operations in Macau via its unit, Wynn Macau.
Wynn is one of the leading casino entertainment providers in the United States, owning and operating two PROPERTIES [] in Las Vegas, Nevada. For the financial year ended Dec 31, 2008, the Wynn group recorded net revenues of about US$3 billion.
On Oct 9, Wynn completed a successful initial public offering for Wynn Macau on the Hong Kong Stock Exchange, raising over US$1.87 billion in new equity.
“The notes represent a good opportunity for Genting Malaysia to expand its investment portfolio and enhance returns on its existing cash balances,” it said in a statement issued via Bursa Malaysia yesterday.
As of June 30, 2009, the casino operator had over RM5 billion cash and cash equivalents. Genting Malaysia said Wynn Resorts offered the notes as part of the latter’s private placement exercise.
The subscription of the notes came about four months after Genting Malaysia bought a 3.2% stake in the biggest operator on the Las Vegas Strip, MGM Mirage.
Wynn Resorts, a leisure and gaming corporation listed on Nasdaq, had on Oct 9, announced that its units, Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp would be issuing US$500 million worth of new 7.875% First Mortgage Notes due 2017.
Genting Malaysia said yesterday its unit, Resorts World Ltd, had completed the subscription to US$15 million nominal amount of the notes.
“With yield returns in excess of 8%, the investment generates an attractive return compared to what is currently attainable in the money markets or in other secured investments regionally, especially within the Genting Malaysia group’s core leisure and hospitality industry,” it added.
The gaming giant added that the notes were secured against quality gaming and entertainment assets in Las Vegas.
Genting Malaysia said the proceeds would be used by Wynn to settle some of its outstanding debts and for general corporate purposes.
It said the subscription to the notes was not expected to have a material impact on the net assets or earnings per share of the Genting Malaysia group for the year ending Dec 31, 2009.
Genting Malaysia also has investments in Singapore and Hong Kong-listed Star Cruises Ltd (SCL), its 19.58% associate company. The purchase of MGM earlier this year signalled that a global expansion is underway for Genting Malaysia and triggered speculation that it could also buy out MGM’s stake in its Macau unit.
Wynn also has operations in Macau via its unit, Wynn Macau.
Wynn is one of the leading casino entertainment providers in the United States, owning and operating two PROPERTIES [] in Las Vegas, Nevada. For the financial year ended Dec 31, 2008, the Wynn group recorded net revenues of about US$3 billion.
On Oct 9, Wynn completed a successful initial public offering for Wynn Macau on the Hong Kong Stock Exchange, raising over US$1.87 billion in new equity.
Monday, October 19, 2009
林立迎报警查廖中莱夫人
被指收建筑公司60万轿车
林立迎报警查廖中莱夫人
民主行动党士岩沫国会议员林立迎（左图）今日针对卫生部长廖中莱的夫人被指接受一家建筑公司“汽车大礼”的传闻，前往冼都警区总部报案，要求警方调查。
由著名部落客拉惹波特拉主持的《今日马来西亚》网页，在10月14日刊登一则题为《致给尊贵的卫生部长廖中莱》的文章，指廖中莱的夫人李善如在今年1月的生日，接受Axis Construction私人有限公司（ACSB）所赠送的一辆丰田Alphard（车牌WSB 15），价值近60万令吉。
文章列明支票与户口号码
文章进一步指ACSB以一张丰隆银行（编号HLB 373727）缴付高达30万令吉的首期贷款，之后该公司继续缴付每月5000令吉的贷款，存入李善如的大众银行（户口号码4487469902）。文章指ACSB是获得卫生部工程合约的常客。
林立迎报警后向记者表示，“我们在今天报警，因为我们要知道真相，我们要知道《今日马来西亚》所刊登的文章是事实还是杜撰”。
强调报案与马华党争无关
他进一步解释，他们没有向反贪污委员会报案，因为他们无法确定此事的真伪。
“如果指控是真的，我们警方和反贪委会采取行动对付犯法的人士。若指控是虚假的，警方可以提控援引刑事法典500条文的刑事煽动罪，来提控有关作者。”
“如果他们无罪，这也是一个还被指控人士清白的机会。”
他强调，报案与马华党争无关。
文章刊登5天廖仍无回应
林立迎也说，在文章刊登后，他们已经给廖中莱（右图）5天的时间做出回应，但是对方一直没有回应，他们才决定报警。
人民公正党格拉那再也国会议员罗国本也陪同林立迎前往报警，他表示“公众通常将互联网上所刊登的资料视为片面事实，因此我们必须核实这项课题。”
不过，罗国本也表示，“警方的调查通常无法满足人们的期望，尤其是涉及部长。”
根据报章报道，廖中莱已经强烈否认“受贿”，并形容这是一项政治阴谋，他也愿意配合警方的调查。
http://www.malaysiakini.com/news/115330
林立迎报警查廖中莱夫人
民主行动党士岩沫国会议员林立迎（左图）今日针对卫生部长廖中莱的夫人被指接受一家建筑公司“汽车大礼”的传闻，前往冼都警区总部报案，要求警方调查。
由著名部落客拉惹波特拉主持的《今日马来西亚》网页，在10月14日刊登一则题为《致给尊贵的卫生部长廖中莱》的文章，指廖中莱的夫人李善如在今年1月的生日，接受Axis Construction私人有限公司（ACSB）所赠送的一辆丰田Alphard（车牌WSB 15），价值近60万令吉。
文章列明支票与户口号码
文章进一步指ACSB以一张丰隆银行（编号HLB 373727）缴付高达30万令吉的首期贷款，之后该公司继续缴付每月5000令吉的贷款，存入李善如的大众银行（户口号码4487469902）。文章指ACSB是获得卫生部工程合约的常客。
林立迎报警后向记者表示，“我们在今天报警，因为我们要知道真相，我们要知道《今日马来西亚》所刊登的文章是事实还是杜撰”。
强调报案与马华党争无关
他进一步解释，他们没有向反贪污委员会报案，因为他们无法确定此事的真伪。
“如果指控是真的，我们警方和反贪委会采取行动对付犯法的人士。若指控是虚假的，警方可以提控援引刑事法典500条文的刑事煽动罪，来提控有关作者。”
“如果他们无罪，这也是一个还被指控人士清白的机会。”
他强调，报案与马华党争无关。
文章刊登5天廖仍无回应
林立迎也说，在文章刊登后，他们已经给廖中莱（右图）5天的时间做出回应，但是对方一直没有回应，他们才决定报警。
人民公正党格拉那再也国会议员罗国本也陪同林立迎前往报警，他表示“公众通常将互联网上所刊登的资料视为片面事实，因此我们必须核实这项课题。”
不过，罗国本也表示，“警方的调查通常无法满足人们的期望，尤其是涉及部长。”
根据报章报道，廖中莱已经强烈否认“受贿”，并形容这是一项政治阴谋，他也愿意配合警方的调查。
http://www.malaysiakini.com/news/115330
Reps want cops to investigate allegations in letter against Liow
KUALA LUMPUR: A report has been lodged by two opposition par-ty MPs calling on the police to investigate allegations made in a letter against Health Minister Datuk Seri Liow Tiong Lai.
The allegations against Liow, who is also MCA deputy president, were made in an unsigned letter which is being widely circulated in the Internet and published in the news portal Malaysia Today.
The report was lodged by DAP’s Segambut MP Lim Lip Eng and PKR’s Kelana Jaya MP Loh Gwo-Burne at the Sentul police station here yesterday.
A copy of the letter was attached to the police report.
The letter alleged that a company often awarded projects by the ministry had bought a multi-purpose vehicle for Liow’s wife for RM574,884.10.
It also said payments had been made into her account.
Lim, when speaking to reporters after lodging the report, read out the contents of the letter.
He also distributed to reporters copies of his police report and the letter.
“I want the police and the MACC to investigate this matter thoroughly, and bring him to book if there is any truth in it.
“However if found to be false, police must take action against the person who sent the letter,” he said.
Lim said he first read the letter which was posted in the letters column of the news portal on Saturday.
He decided to lodge a police report after reading the contents of the letter.
When contacted, Liow denied all the allegations made against him.
“It is totally rubbish. The person doing this obviously has malicious intent,” he said.
http://thestar.com.my/news/story.asp?file=/2009/10/19/nation/4930954&sec=nation
Saturday, October 17, 2009
翁诗杰的最后一场豪赌
翁诗杰又一次不按牌理出牌，不仅留任马华总会长之职，更援引总会长权力，指示召开双十特大后的另一场特大，让中央代表议决是否重选中委会。翁诗杰此举无疑是把双十特大后逐渐明朗化的马华权力布局，以强硬手腕全盘打乱，迫使党内各派势力重新洗牌，大家进场再玩一铺。
如今的局面，比较双十特大的结果还要诡谲和险恶万倍，整个马华宣告进入真正的战国时代。在混乱无比的局面中，有几条基本线索可以窥探：
拒绝体面下台打最后一战
一、翁诗杰在巴生港口自贸区和双十特大后，再次把自己的命运押上赌桌，所不同的是，这一次才真正是他最大也是最后一次的政治豪赌。
双十特大的结果，翁诗杰基于政治道义和事前诺言，只有下台一途——当然，下台还有好几种方式，包括立即辞 职、以过渡形式交棒等；但如此一走，他在大马政治史或马华党史的历史定位，最多只会有如此评价：“翁诗杰在担任马华总会长后推动一系列党改革计划，以带领 党走出低潮，但不幸的是在不到一年时间，在2009年10月10日特大中被投以不信任票，翁诗杰坦然接受特大结果，辞去总会长职位。”或诸如此类的传记论 调。
但翁诗杰不会甘于这样的历史定位，正确的说，他根本不愿屈服于命运的安排，所以他决定跟命运再赌一次，而且这次是真正押上一切的人生 豪赌——输了，就再没有体面下台的机会，在马华党史中只会留下更难堪的历史定位；赢了，就可以扭转乾坤，领导马华并交出政绩，从而改写日后历史对他的评 价。
翁诗杰拒绝体面下台，他决定打这一场最后的战役；成王败寇、是非褒贬，是英雄是狗熊，在此一举。
马华公会史上最牛总会长
二、翁诗杰的决定出乎意料，也在常理之中，说到底，好勇斗狠本来就是翁诗杰的性格。翁诗杰的从政历程，就是一路斗上来的，往日他战无不胜、攻无不克，今天他在双十特大虽然栽了个大筋斗，却不改本性，即使剩下最后一口气，也要跟你战斗到底。
双十特大，一半中央代表对翁诗杰投下了不信任票，首相纳吉暗示他应该离开，巫统喉舌《马来西亚前锋报》叫 嚣他必须辞职，蔡派要他滚蛋，昔日伙伴的中委成员们也开始做好接班准备了，但翁诗杰还是选择使出这最后的搏浪一击，不顾巫统旨意、不顾众叛亲离、不顾舆论 质疑。翁诗杰的倔强，比起林仓佑、梁维泮、陈群川等只有过之而无不及；马华历任总会长，最牛的要算他了。
翁诗杰和蔡细历其实都是战斗型的枭雄人物，有着遇强逾强、越战越勇、打不死的顽强个性，马华在308挫折后，让一个战斗型的强势领袖来领导，应该是许多党员的普遍愿望；但老天爷偏偏把两个强人摆在历史的交汇点，最终落得两败俱伤的结局。
与中委会对立陷孤立状态
三、 翁诗杰此举可视为对整个中委会的复仇行动，尤其是对那些之前与他站在同一阵线、誓言与他共同进退，而如今在他特大失利后还未呈辞就开始进行权力安排的中委 成员们（也就是所谓的挺翁人士）。早前马华会长理事会开除蔡细历，以及较后中委会的减刑决定，不管会长理事会或中委会成员都多次强调是集体决定，且确实有 人说过会与翁诗杰集体负责、共同进退；但特大的结果却最终由翁诗杰一人承担，应该离开的只有他，如此一来，翁诗杰不会甘心。
这就是翁诗杰在他的声明中所谓的“特别代表大会是因为纪律惩处事件引发，而有关结果则是集体所作的议决。 换言之，是党的领导层集体决策，不是一个人独断决定。”而他的复仇手法，就是把所有中委会成员逼上审判台——通过特大促成现任中委会的解散和重选，让这些 他认为已“背叛”他的中委成员再一次面对党选的考验，最重要的是，让他们不得不面对落选的风险。
翁诗杰的这一局豪赌，连众马华领袖的官位 和党职都一并押上去了，但如此一来，翁诗杰无疑是跟之前的挺翁人马，也就是几乎整个中委会对立起来了。因此，如今马华的最高领导层，除了处于弱势的蔡派人 马，当权派实际上已分为“总会长派”（翁派）与“中委派”（目前看来廖中莱是领军人物），其中后者在人数上占了多数。
眼下的所谓当权派，到底是总会长派还是中委派，是目前局势最吊诡的系数。另一方面，翁派要召开特大以决定中委是否重选的行动虽然符合蔡派意愿，蔡派可以表示支持，但不大可能会跟翁派联手对抗中委派，反而会趁机紧咬翁诗杰食言的议题，要求他辞去总会长职。
换 句话说，翁诗杰，正确而言是翁派，如今是真正陷入一种完全孤立的状态。当上马华总会长的翁诗杰，兜兜转转，最终又回到他昔日的独行之路，后人在读到这一段 历史时，或许只能唏嘘：翁诗杰终究是翁诗杰！而更吊诡的是，马华公会终究也走不出老大老二对立的宿命，只是这场斗争的主角，从上周的翁蔡，一夜之间变成了 翁廖。天意之弄人，不过如此！
多势力权斗模式复杂诡谲
四、马华双十特大后的权力布局被翁诗杰全盘打乱，各路势力被迫重新洗牌就位，除了当权派分裂成总会长派和 中委派，其它主要派系尚包括实力雄厚、伺机而动的蔡派，以及在场外虎视眈眈的林派（林祥才）、黄派（黄家泉）、冯派（冯镇安）等老A队派系。在第二场特大 召开之前，这几股势力之间的纵横捭阖、折冲樽俎、明争暗斗，其复杂、诡谲、变幻、险恶的程度，将是马华党史上绝无仅有；因为这几股势力之间的权斗模式，将 重复出现或重叠出现好几种方程式：
总会长派VS中委派+蔡派；总会长派+中委派VS蔡派；总会长派+蔡派VS中委派；总会长派+中委派 VS蔡派+林派+黄派+冯派；总会长派+蔡派+林派+黄派+冯派VS中委派；总会长派VS中委派+蔡派+林派+黄派+冯派；等等组合模式。这是一场任何派 系都根本无法作出任何准确计算、也对结果没有任何把握的权力斗争。
第二场特大埋下的可能性
五、我们再来看看第二场特大的提案，即是否重选中委会，所埋下的可能发展。如果这项议案获得通过，那意味 着马华在本年度的常年代表大会和特大结束后，就马上要迎来一场党选，到时候除了翁诗杰和蔡细历可能竞选总会长职，廖中莱、江作汉、冯镇安、黄家泉等也可以 参选，至于署理总会长和副总会长等职位的竞争情况更是难以逆料。简言之，根本没有人可以想象到时候的那场党选到底会打成什么样子。
但如果特大议案被否决呢？那表示现任领导层将保留，但问题是，翁诗杰到时会留任总会长吗？如果他留任，那么他与署理总会长廖中莱以及其余中委的裂痕，将埋下另一场党争的伏线。
纳吉最后解套手段革翁蔡？
六、 这个僵局的最坏情况，甚至可能演变成如同80年代绵延20个月的梁陈党争；但环顾整个马华，实际上已没有任何一个大老有足够的威望、魄力和资源，能够解套 当前的僵局，更甭说统一、整合马华上下。目前看来唯有首相纳吉介入，才能真正解决整个纷争，但如此一来，马华党史又得蒙上另一个被巫统插手干预党务的污点 了。
纳吉最新的一项言论，即马华党争的解决方案必须符合法理、道德、政治三大原则，其意思其实显而易见——翁蔡都应该走人；而纳吉最终被迫采取的手段，或许就是革除翁诗杰和蔡细历的交通部长及国阵总协调职位。
只是，在这一盘被彻底颠覆、重新开始的牌局中，纳吉能否摸到他要的那张底牌，恐怕连他自己也没有十足把握。
http://www.malaysiakini.com/news/115264
Bursa 3Q net profit at RM30.75m
BURSA MALAYSIA BHD reported a 52% increase in net profit of RM30.75 million for the third quarter ended Sept 30, 2009 from RM20.18 million a year ago as the stock exchange operator benefited from the higher trading volume.
It said on Friday, Oct 16 that revenue rose to RM86.29 million from RM73.63 million while earnings per shares were 5.80 sen compared with 3.80 sen.
On the higher earnings, it said this was mainly due to improved investors' sentiment as a result of improving global economic statistics which boosted trading revenue from the securities market.
However, the total number of contracts traded on the derivatives market decreased by 80,000 contracts to 1.51 million contracts in 3Q09 (3Q08: 1.59 million), resulting in a drop in trading revenue from the derivatives market by 18% to RM9.2 million in 3Q09 compared to 3Q08.
The decrease was mainly due to a lower number of FKLI contracts traded (3Q09: 500,000 contracts; 3Q08: 700,000 contracts). This was partially offset by the increase in number of FCPO contracts traded (3Q09: 1.03 million contracts; 3Q08: 0.85 million contracts).
Bursa Malaysia said stable revenue increased by 13% to RM29.1 million in 3Q09 compared to 3Q08 primarily due to higher CDS fees (of which RM4.7 million was attributed to prior periods). This increase was partially offset by lower annual listing fees as a result of lower market capitalisation of RM660 billion as at Dec 31, 2008 compared to RM1.11 trillion as at Dec 31, 2007.
The increase was further offset by a reduction in broker services income following the phasing out of older network equipment.
The on-market trades (OMT) on the securities market recorded a velocity of 36% (3Q08: 25%) and a daily average trading value for OMT and direct business trades (DBT) of RM1.38 billion (3Q08: RM890 million).
This resulted in an increase in trading revenue from the securities market by 46% to RM38.0 million in 3Q09 compared to 3Q08.
Other income increased marginally by 3 per cent to RM7.2 million in 3Q09 compared to 3Q08. The increase was due to a gain from disposal of motor vehicles and the recognition of the ETP Phase II grant. Interest income reduced as a result of a lower level of funds available for investment and lower return on investment.
BURSA
Bursa Malaysia said the Group recorded a lower profit before tax of RM43.8 million for 3Q09 compared to RM48.3 million in 2Q, which was a decrease of RM4.6 million or 9%.
Trading revenue from the securities market decreased by 21% to RM38.0 million in 3Q09 compared to RM47.9 million in 2Q09 mainly due to the lacklustre market as investors remained cautious over uncertainties in the strength of the domestic economic growth and global economic recovery.
The securities market recorded a velocity for OMT of 36% (2Q09: 48%) and a daily average trading value for OMT and DBT of RM1.38 billion (2Q09: RM1.56 billion).
Trading revenue from the derivatives market decreased by 21% to RM9.2 million in 3Q09 compared to RM11.7 million in 2Q09 mainly due to decrease in total number of contracts traded by 20% to 1.51 million in 3Q09 from 1.88 million in 2Q09.
Friday, October 16, 2009
Top US Executives Optimistic About Economy, Business
Top U.S. executives are becoming more hopeful about the global economy and the U.S. business outlook, according to a survey of business leaders released Thursday.
More than 60 percent of corporate leaders surveyed by the Business Council in October now expect conditions in their own industry to improve over the next six months. In contrast, almost 90 percent of those surveyed in February said conditions were worsening.
The change is a "welcome reversal of the doom and gloom that plagued outlooks earlier this year," James Dimon, Business Council vice chairman and JPMorgan Chase chief executive officer, said in a foreword to the survey.
More than half of the Business Council members say they expect the global economy to continue to improve moderately during the next six months.
The Business Council is an association of top executives whose members meet several times a year to discuss major business issues.
Some 70 percent of the survey respondents said they expected the retail sector to show continued moderate improvement.
"These results are encouraging, given that consumer confidence is rated the single most important factor in shaping the outlook for 2010," according to the survey, which was compiled by the Conference Board.
CEOs said their ability to raise prices had improved. More than 53 percent said pricing power had stabilized, and 26 percent said prices were rising.
Still, executives remain cautious about next year. The majority of Business Council members expect the U.S. economy to grow at a rate of 2 percent or less during the first half of 2010.
But worries about inflation prompted almost 46 percent of CEOs to say that the U.S. government should begin to unwind its massive asset purchases to avoid inflationary pressures.
In May, just 15 percent of respondents had supported the measure.
More than 60 percent of corporate leaders surveyed by the Business Council in October now expect conditions in their own industry to improve over the next six months. In contrast, almost 90 percent of those surveyed in February said conditions were worsening.
The change is a "welcome reversal of the doom and gloom that plagued outlooks earlier this year," James Dimon, Business Council vice chairman and JPMorgan Chase chief executive officer, said in a foreword to the survey.
More than half of the Business Council members say they expect the global economy to continue to improve moderately during the next six months.
The Business Council is an association of top executives whose members meet several times a year to discuss major business issues.
Some 70 percent of the survey respondents said they expected the retail sector to show continued moderate improvement.
"These results are encouraging, given that consumer confidence is rated the single most important factor in shaping the outlook for 2010," according to the survey, which was compiled by the Conference Board.
CEOs said their ability to raise prices had improved. More than 53 percent said pricing power had stabilized, and 26 percent said prices were rising.
Still, executives remain cautious about next year. The majority of Business Council members expect the U.S. economy to grow at a rate of 2 percent or less during the first half of 2010.
But worries about inflation prompted almost 46 percent of CEOs to say that the U.S. government should begin to unwind its massive asset purchases to avoid inflationary pressures.
In May, just 15 percent of respondents had supported the measure.
Earning season comes, uptrend comes?
This week US earning season starts. JPMorgan and Intel reported superb earning. Goldman Sachs's net income of $3.19 billion beat expectations on strong trading profits.
I think these earning reports can give us some indications on how the rest of the companies' earning reports will look like.
I also notice that for the last 2 quarters, when the earning season starts, so do the uptrend starts. When the earning season is near its end, there will be a short term correction. I wonder what will happen this time.
Good luck.
GOon
I think these earning reports can give us some indications on how the rest of the companies' earning reports will look like.
I also notice that for the last 2 quarters, when the earning season starts, so do the uptrend starts. When the earning season is near its end, there will be a short term correction. I wonder what will happen this time.
Good luck.
GOon
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