FRANKFURT/TOKYO, June 18 (Reuters) — The Iran war-induced inflation surge is becoming too much for central banks around the world to simply look past, and a string of them, led by the US Federal Reserve, have either raised borrowing costs or signalled likely moves to tame price growth. 

Conflict in the Middle East has pushed up energy costs and even if an interim peace deal holds, so much infrastructure has been damaged and so much oil is missing from stockpiles that energy market normalisation could last well into next year.

This is especially troubling as some big economies, notably the United States and Britain, failed to get inflation back to target after the 2021–22 price shock. Five years of above-target price growth puts their central banks' credibility on the line. 

The Fed signalled possible moves on Wednesday and Bank of England policymakers debated a hike, setting aside conventional economic theory that they should look past a temporary shock. 

The European Central Bank and Bank of Japan have already raised interest rates. The tone shift at the Fed, which was announcing its first monetary policy decision under new Chair Kevin Warsh, is especially notable.

At the start of this year, investors were anticipating two or three US rate cuts in 2026. Now, they are pricing in two increases in borrowing costs, meaning that financing conditions have tightened even before any central bank action.

Because financial markets take their cue from the world's largest central bank, that can create a domino effect for peers. 

“With the Strait (of Hormuz) set to reopen – apparently – it is tempting to think that the global rate-hiking cycle is already over,” TS Lombard's Dario Perkins said.

“That assessment looks wrong,” Perkins said. “Underlying inflation remains too high and growth is set to re-accelerate.”

Trump rate cut not coming

The Fed reinforced that message on Wednesday, with projections that put a rate hike squarely on the table.

“The big picture is that the Fed seems open to raising interest rates,” said Stephen Brown at Capital Economics, adding that its inflation projection alone would suggest it should already be hiking.

The rate cuts once demanded by US President Donald Trump certainly don't seem likely to come any time soon, especially since Warsh plans to set up several committees to review the central bank's operations.

“Warsh's inflation rhetoric was more hawkish than we had expected,” UniCredit said in a note. 

“The FOMC will have little incentive to move while it waits for the committees to deliver their inputs.”

The oil market is also working against inflation, with prices dropping sharply in recent days.

But the price curve is now flat, with Brent crude trading at US$77 (RM324.61) per barrel now and December futures at US$76 (RM320.40), suggesting that markets either do not believe the peace deal will hold or think normalisation will be drawn out as stocks need replenishing.

Effects felt around the world

The “Fed effect” will then reach around the globe.

A sharp slide on Thursday in the Japanese yen prompted fresh talk about intervention and will put pressure on the BOJ to hike borrowing costs further.

“The yen's declines caused by a hawkish-leaning Fed could prod the BOJ to speed up the pace of interest rate hikes,” Katsutoshi Inadome, senior strategist at Sumitomo Mitsui Trust Asset Management in Tokyo, said.

“We've already seen the weak yen push up long-term inflation expectations, a trend that may continue and keep pressure on the BOJ to hike rates,” Katsutoshi said.

The Bank of England held rates on Thursday but discussed the merits of a hike, while Norway's central bank warned inflation is too high and that borrowing costs are likely to be raised later this year. 

While the BoE was less explicit than most others in signalling higher rates, financial markets have fully priced in a move by the end of the year, especially as the bank's own chief economist continues to advocate a hike. 

The ECB, which last week became the first big central bank to hike rates, has firmly kept more policy action on the table this week, with policymakers cautioning against any expectation of radical improvement on the peace deal. — Reuters

BANGKOK, June 18 — Thailand’s leading home improvement and lifestyle retailer, MR D.I.Y. Holding (Thailand) Public Company Limited (MRDIYT), has been selected for inclusion in three key indices of the Stock Exchange of Thailand (SET), underscoring growing investor confidence in the company’s business fundamentals and market position.

The company will be included in the SET50 Index, SET100 Index and the SET Well-Being Index (SETWB), effective July 1, 2026.

In a statement, MRDIYT said the inclusion marks a significant milestone for the company and reflects continued confidence in its strong financial performance, market capitalisation, trading liquidity and long-term growth prospects.

“The company’s entry into the SET50 and SET100 indices places it among Thailand’s leading listed firms, highlighting its increasing prominence in the country’s equity market,” it said on Thursday.

MRDIYT said the inclusion in the SETWB Index recognises businesses with strong fundamentals operating in sectors that contribute to consumer well-being and quality of life, in line with Thailand’s economic development priorities.

Meanwhile, its chief executive officer, Andy Chin, said the company’s inclusion in the SET50 Index reflects the trust and support it has received from customers, shareholders, business partners and employees throughout its growth journey in Thailand.

“We are honoured to be included in the SET50. This recognition reflects the trust placed in us by our customers, shareholders, business partners and employees, who have supported our growth journey in Thailand over the past decade,” he said.

Chin said MRDIYT has expanded from a single outlet to more than 1,200 stores across all 77 provinces in Thailand, driven by its commitment to making everyday essentials more accessible and affordable.

“Guided by our promise of ‘Always Low Prices’, we will continue to deliver value, serve the needs of Thai households and build sustainable long-term growth for all stakeholders,” he added.

MRDIYT is one of Thailand’s largest value retailers, offering a wide range of household, hardware, electrical, stationery, furnishing and lifestyle products through its nationwide store network.

The company opened its first store in 2016 and now has 1,200 stores across 77 provinces in Thailand, supported by over 13,000 employees.

Apart from Malaysia and Thailand, MR D.I.Y. also operates in Brunei, Indonesia, Singapore, the Philippines, Cambodia, Vietnam, India, Turkiye, Bangladesh, Spain, Poland and South Africa. — Bernama

KUALA LUMPUR, June 18 — The ringgit closed lower against the US dollar on Thursday as expectations of a possible US Federal Reserve (Fed) interest rate hike later this year boosted demand for the greenback.

At 6 pm, the local note fell to 4.1145/1195 against the greenback from 4.0665/0700 at Tuesday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said expectations of a 25-basis-point interest rate hike by the Fed this year continued to support the US dollar.

“This is despite the Fed’s forecast for lower federal fund rates of 3.6 per cent in 2027 and 3.4 per cent in 2028, compared with 3.8 per cent in 2026.

“Hence, we believe there appears to be a knee-jerk reaction among traders as the Fed is also abandoning forward guidance in its accompanying statement,” he told Bernama.

At the close, the ringgit was mostly lower against a basket of major currencies.

It depreciated against the Japanese yen to 2.5588/5620 from 2.5360/5384 at Tuesday’s close and slipped versus the euro to 4.7222/7280 from 4.7175/7216. However, it strengthened against the British pound to 5.4476/4542 from 5.4552/4599 previously.

Against regional currencies, the local note was lower.

It weakened against the Thai baht to 12.5611/5809 from 12.5027/5192 at Tuesday’s close, depreciated versus the Indonesian rupiah to 231.2/231.5 from 229.3/229.7 previously, eased against the Philippine peso to 6.79/6.80 from 6.74/6.75 and declined against the Singapore dollar to 3.1898/1939 from 3.1722/1752. — Bernama

KUALA LUMPUR, June 18 — KHPT Holdings Bhd has secured a contract from Perusahaan Otomobil Nasional Sdn Bhd (Proton) to supply automotive components for a new Proton model.

In a statement filed with Bursa Malaysia today, KHPT said its wholly owned subsidiary, Automev Global Sdn Bhd, has accepted a letter of acceptance (LOA) from Proton on May 6, 2026, in relation to the supply contract.

It said the LOA is expected to generate approximately RM155 million in revenue for Automev Global over the LOA period and shall remain valid throughout the vehicle’s model life, unless extended or earlier terminated in accordance with the terms and conditions of the LOA.

KHPT said Automev Global will manufacture and supply selected automotive structural components to support Proton’s vehicle production requirements.

It elaborated that the production will be carried out at the group’s existing manufacturing facility in Telok Panglima Garang, Selangor.

“This LOA reflects the group’s continued participation in the domestic automotive supply chain and reinforces its long-standing business relationship with Proton,” it added.

Automev Global originally accepted the LOA from Proton on May 6, 2026.

Subsequently, on June 16, 2026, Proton’s consent was obtained for the release of this announcement to the local bourse regarding the LOA. — Bernama

KUALA LUMPUR, June 18 — Bursa Malaysia’s key index finished marginally higher, supported by strong buying interest in consumer-related counters, amid mixed performance across regional markets.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.40 points, or 0.08 per cent, to 1,711.39 from Tuesday’s close of 1,709.99.

The key index opened 12.36 points firmer at 1,722.35 and moved between 1,711.31 and 1,722.63 throughout the session.

Market breadth was negative, with losers leading gainers 678 to 493, while 549 counters were unchanged, 1,016 untraded and 34 suspended.

Turnover increased to 4.50 billion units worth RM3.45 billion from 3.93 billion units worth RM3.45 billion on Tuesday.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said bargain hunting continued to emerge in selected blue-chip counters, particularly those with resilient earnings prospects and attractive valuations.

Nevertheless, he said investors are likely to remain selective as the peace agreement has yet to be formally finalised, while uncertainties surrounding the global economic outlook and foreign fund flows remain key considerations.

“Overall, we maintain a cautiously optimistic stance on the local market, with the FBM KLCI expected to trade within the 1,700-1,720 range towards the weekend,” he told Bernama.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said today’s positive performance was supported by improving global risk sentiment after United States President Donald Trump signed a preliminary agreement aimed at ending the conflict in West Asia.

He said the development fuelled optimism that tensions between the US and Iran could ease further, helping restore confidence across regional equity markets.

“Looking ahead, investors will continue to monitor developments surrounding the West Asia peace process, movements in crude oil prices, and upcoming global economic data releases for further direction.

“Sustained easing in geopolitical risks could provide additional support for risk assets, particularly sectors that benefit from lower energy and transportation costs,” he added.

Among heavyweights, Press Metal rose 32 sen to RM8.52, 99 Speed Mart added 17 sen to RM3.57, MRDIY gained seven sen to RM1.68, while Maybank was flat at RM11.16 and Public Bank fell five sen to RM5.00.

Among the active stocks, Tanco and Hong Seng were down half a sen to 14.5 sen and one sen, respectively. Zetrix AI shed three sen to 77 sen, while ACE Market debutant Sum Technology soared 24.5 sen to 52.5 sen, and Borneo Oil was flat at half a sen.

Of the top gainers, Hong Leong Industries garnered 66 sen to RM19.14, Petronas Dagangan rose 36 sen to RM18.64, Dutch Lady climbed 24 sen to RM32.50, and Hong Leong Bank was 18 sen firmer at RM22.18.

Among the top losers, Nestle slipped RM1.66 to RM95.14, Malaysian Pacific Industries dipped 74 sen to RM48.56, Paragon tumbled 58 sen to RM1.71, and Concrete Engineering decreased 45 sen to RM3.71.

On the index board, the FBM Emas Index perked up 1.08 points to 12,663.26, the FBM Top 100 Index put on 4.22 points to 12,503.61, and the FBM Emas Shariah Index climbed 14.97 points to 12,489.71.

The FBM Mid 70 Index declined 19.76 points to 18,090.80 and the FBM ACE Index slid 16.72 points to 4,760.27.

By sector, the Financial Services Index eased 7.11 points to 20,277.14, the Energy Index edged down 2.21 points to 762.42, and the Plantation Index fell by 11.92 points to 8,767.45, while the Industrial Products and Services Index rose 2.14 points to 190.71.

The Main Market volume improved to 2.62 billion units valued at RM3.04 billion from 2.05 billion units valued at RM3.05 billion on Tuesday.

Warrants turnover dwindled to 986.61 million units valued at RM131.42 million from 1.11 billion units valued at RM146.79 million previously.

The ACE Market volume expanded to 895.14 million units worth RM283.17 million from 766.52 million units worth RM254.78 million on Tuesday.

Consumer products and services counters accounted for 310.0 million shares traded on the Main Market, industrial products and services (554.06 million), construction (110.07 million), technology (526.46 million), financial services (87.91 million), property (536.89 million), plantation (25.51 million), real estate investment trusts (26.10 million), closed-end fund (21,100), energy (118.87 million), healthcare (197.99 million), telecommunications and media (46.79 million), transportation and logistics (37.68 million), utilities (43.54 million), and business trusts (21,600). — Bernama

WASHINGTON, June 18 — Waymo is recalling 3,871 ‌robotaxis in the US after identifying a software issue that could likely cause the vehicles to enter a closed freeway construction zone and continue driving at speed, ‌the National Highway ⁠Traffic Safety Administration ⁠said today.

The recall pertains ⁠to ⁠certain Fifth Generation Automated Driving Systems (ADS) in ⁠robotaxis.

The auto safety regulator said Waymo has modified the scope of vehicle operations to ⁠restrict freeway driving.

Waymo will update the ADS software ⁠to detect where the vehicle is, ⁠to ⁠avoid entering construction zones, free of charge, ‌NHTSA said. — Reuters

KUALA LUMPUR, June 18 — Malaysia is expected to maintain strong trade momentum in the coming months after recording the best trade performance in the country’s history for the first four months of 2026 despite facing global geopolitical uncertainties and supply chain disruptions, said Deputy Investment, Trade and Industry Minister Sim Tze Tzin.

He said the performance was driven by strong trade in the electrical and electronics (E&E) sector, which continued to benefit from the strong global artificial intelligence (AI) growth cycle.

“Malaysia has recorded the best ever trading numbers in its history in April. That shows that Malaysia’s trade and exports are very resilient. We registered double-digit growth with major trading countries in the world, including the United States, China, Taiwan and Japan.

“So this trajectory, we believe that it will go on for a few more months because we are riding the AI super cycle. The trading among E&E sectors is robust. Whether it will go up until the end of 2026 remains to be seen but I am cautiously optimistic,” he told the media after addressing the 53rd annual general meeting of the Malaysian International Chamber of Commerce and Industry (MICCI).

On Malaysia’s achievement in attracting investments exceeding RM1 trillion in three years, Sim said global geopolitical conflicts indirectly made Malaysia a more attractive investment destination due to its position as a stable country in South-east Asia.

He said the government’s continuous efforts through agencies such as the Malaysian Investment Development Authority (MIDA) also played an important role in attracting foreign investments.

On the development of a local vendor database, Sim said the initiative aims to create a centralised platform that allows companies to identify products and services offered by local enterprises, thus facilitating business collaboration.

“We want to gather the data of all companies in one centralised database so that when they are looking for partners, they can identify the right company.

“If we have a complete database, we can connect local companies more effectively. This helps reduce dependence on imports and ensures that more money remains in the Malaysian economy,” he said.

On Malaysia’s prospects in exiting the middle-income trap, Sim said the country has the potential to achieve high-income status within two years if the current economic growth momentum can be maintained.

He said Malaysia needs to maintain the economic momentum of 2025 to achieve high-income status, but will have to face various uncertainties such as the global geopolitical crisis.

“We are capable of achieving that status but a lot of uncertainties remain. So we have to work hard, including the government, the private sector and the people. All Malaysian citizens must work hard in terms of productivity. 

“Also, we need stable politics. If we have continuous chaos in politics, then we will have problems in terms of moving to high income nation. Political stability is very important. Too much is at stake. If we have disruptive politics, if we don’t have a stable government, if we keep changing the government, then we will be left behind,” he added. — Bernama

KUALA LUMPUR, June 18 — Perusahaan Otomobil Kedua Sdn Bhd (Perodua) is reducing the price of its service maintenance parts, including labour, by up to 10 per cent, beginning June 19.

The carmaker said the initiative is in line with Perodua’s efforts to help Malaysians cope with the rising cost of living.

“This campaign includes all Perodua models, including its electric vehicle model, QV-E, ranging from inspection, parts replacement, as well as labour costs relating to vehicle maintenance,” it said in a statement today.

Perodua president and chief executive officer, Datuk Seri Zainal Abidin Ahmad said the price reduction is based on the prices of the maintenance parts as well as labour costs.

Overall, the customer is expected to see savings of about 10 per cent on their average service bill, he said.

“We welcome our customers to visit our authorised service centres to find out more about the deal and to use genuine parts, so that your Perodua vehicle will continue to remain reliable and efficient.

“We believe that the reduction in service cost will assist our customers in reducing their mobility cost, and we at Perodua will do our part to give greater value to our customers,” he said.

Last year, a total of 3.7 million vehicles were serviced at Perodua’s service centres nationwide.

Zainal Abidin noted that there are more than five million Perodua vehicles on the road, and added that the campaign will enable Perodua to better serve a large majority of Malaysians. — Bernama

WASHINGTON, June 18 — US President Donald Trump ‌said in a Truth Social post today that Apple has agreed to work with Intel to design and manufacture its chips ‌in the United States.

A partnership with Intel helps Apple diversify its manufacturing base as it seeks additional chip capacity. The iPhone maker relies heavily on TSMC, whose advanced production lines are in high demand from AI chipmakers such as Nvidia and AMD.

Intel reached a preliminary deal to make some chips for Apple after more than a year of discussions, the Wall Street Journal reported in May.

Apple and Intel ‌did not immediately respond to a Reuters’ request for comments ⁠outside regular business hours.

An ⁠Apple contract gives Intel a steady ⁠demand from one of the world’s ⁠largest consumer ⁠electronics companies, boosting both its reputation and a manufacturing business that has lagged TSMC in recent years.

Earlier this week, ⁠Intel said a new generation of its manufacturing tech 18A has entered its initial production, as the chipmaker sees strong demand for its central processors.

Last year, the Trump administration took a 10 per cent stake in Intel and announced plans to ⁠invest roughly US$10 billion (RM40.9 billion) in the chipmaker to build or expand US factories.

Trump previously said he “should have asked for ⁠more” of a stake in Intel, eight months after the ⁠government’s Intel position ⁠grew to be worth more than US$50 billion.

The administration has been stepping up efforts to secure US supply chains for critical ‌minerals and semiconductors, including taking equity stakes in companies to reduce reliance on China. — Reuters

RANONG (Thailand), June 18 — Chaiyaporn Arunrasamee hunched over his fishing nets, overlooking the waters of the Andaman Sea, where Thailand’s government is proposing an ambitious “Land Bridge” ‌that will ferry goods between ports on opposite sides of the peninsula.

“Personally, I don’t want it to happen at all,” Chaiyaporn said of the project, which Thai Prime Minister Anutin Charnvirakul has resuscitated after the war in Iran and the closure of the Hormuz Strait highlighted countries’ reliance on strategic maritime chokepoints.

Plans envision a 1 trillion baht (RM124.5 billion) logistics corridor to offer an alternative route to the congested Strait of Malacca by connecting two new deep-sea ports: Chumphon, on the Gulf of Thailand to the east, and Ranong, along the western Andaman coast, where ‌Chaiyaporn, 50, has fished for his entire life.

“This thing will be located in the area where we make our living,” he said last month in the small fishing hamlet of Baan Hat Sai Dam on an island ringed by mangrove forests. “Where will we go?”

Reuters crisscrossed the land and communities in the path of the proposed Land Bridge and interviewed more than 15 residents, local officials, experts, planning leaders and others involved or affected by the process.

The interviews, as well as government documents reviewed by Reuters, reveal previously unpublished details of a project with promises of savings and speedy shipments, but hampered by complicated logistics, local opposition and a staggering cost that has yet to attract major investors.

Analysts say the project currently appears economically ambitious and is unlikely to compete with Melaka as a global transit route, but it could prove viable as a smaller-scale strategic corridor for Thailand.

The 900-km long Malacca Strait is bounded by Indonesia, Thailand, Malaysia and Singapore and provides the shortest sea route from East Asia to the Middle East and Europe.

“The land bridge may ultimately...emerge as a modular national security asset aimed at securing local energy routes and boosting Thailand’s own western export capabilities,” said Eugene Mark at Singapore’s ISEAS-Yusof Ishak Institute.

A drone view shows Highway 44, also known as the Southern Seaboard Highway, a route linking Krabi and Surat Thani provinces, as part of Thailand’s proposed Southern Land Bridge project to connect the Andaman Sea and the Gulf of Thailand, in Surat Thani province May 21, 2026. — Reuters pic

Alternative to Melaka

An internal government presentation seen by Reuters says the proposed corridor could reduce logistics costs by nearly 30 per cent and cut transit times by up to 14 days for cargo moving between southern China and ports in the Indian Ocean serving South Asia and the Middle East.

At the core of the project is a standard-gauge railway across the 90km between the two deep-sea ports, which will be capable of handling up to 20 million Twenty-foot Equivalent Unit (TEU) a year, according to the presentation.

One ‌TEU represents the volume of a single, standardised 20-foot shipping container.

Another meter-gauge rail line will link the cargo flow to the existing national railway network. The corridor would also be supported by multi-lane highways and local roads, all integrated with Thailand’s broader ⁠transport network.

About 80 per cent of all container traffic handled at major regional ports along the Malacca Strait, including Singapore, consists of trans-shipment ⁠cargo waiting to be transferred between vessels rather than goods destined for local markets, according to Thai estimates.

“We want to capture some of this 80 per cent market, particularly the feeder ⁠segment,” said Jiraroth Sukolrat, Director-General of Thailand’s Office of Transport and Traffic ⁠Policy and Planning, referring to freight ships with 12,000 TEU ⁠capacity or lower.

Overall, feeder-to-feeder cargo movements from the Gulf of Thailand to the Andaman Sea — or vice versa — could be around 10 per cent cheaper and six days faster than comparable routes through Singapore, largely because of lower congestion, according to the internal government presentation.

“We are not targeting giant mainline vessels,” Jiraroth said.

A woman walks toward her boat on Koh Phitak Island, in Chumphon province, near the site of Thailand’s proposed Southern Land Bridge project, May 17, 2026. — Reuters pic

Diplomatic balancing act

A Thai government-appointed panel, currently reviewing the projects and its previous impact assessment reports, is due to submit its findings before the end of July.

The Land Bridge plan, first floated around 2020, is a successor to ⁠a series of infrastructure schemes pursued by Thai governments over two decades that did not materialise due to shifting policies and lack of continued investment support.

Unlike earlier iterations, the current version of the project excludes petrochemical complexes and oil refineries, focusing instead on ports, railways and light industries.

“The concept hasn’t really changed. What has changed is the packaging,” said Wipawadee Panyangnoi, an independent researcher who wrote her doctoral dissertation on the Land Bridge proposal.

“In the past they openly talked about industrial estates and petrochemicals, which people opposed. Today the project is framed as transport infrastructure and logistics because that language is easier for the public to accept.”

The government faces an uphill effort to convince cargo liners to bear the financial and time costs of unloading, moving goods overland, and reloading them onto another vessel, said Mark of the ISEAS-Yusof Ishak Institute.

“Proving that this double-handling model can genuinely compete with the seamless transit through the Strait of Malacca remains a major hurdle,” he said.

But authorities have ⁠learned from unsuccessful past projects and the state will play a regulatory and supporting role, while the financing primarily comes from private investors, said Jiraroth.

“It has to be a consortium involving shipping lines, port operators, financiers and land developers,” he said.

So far, investor interest has been decidedly cautious and non-committal due to shifting policy frameworks and immense capital requirements, Mark said.

The project also faces a tricky geopolitical situation, with neighbours watching with ⁠both cautious interest and wariness, he said.

“Chinese state enterprises are unlikely to commit significant capital unless they secure strong operational leverage, which would trigger intense domestic political pushback in Thailand over foreign control,” Mark said.

“Thailand must navigate a delicate diplomatic balancing act to prevent ⁠the corridor from becoming a geopolitical flashpoint.”

The ⁠Singapore foreign ministry did not immediately respond to Reuters requests for comment.

Chalermusa Seekhiao, 56, Sukhon Limratchadawong, 69, and Benchawan Tubtimtong, 66, local farmers in Phato district, pose for a picture near a banner opposing Thailand's proposed Southern Land Bridge project over concerns about its impact on local agriculture and water resources, in Chumphon province May 18, 2026. — Reuters pic

Expanding resistance

Chaiyaporn is among a dozen residents along the 90-kilometers corridor between the two seas, home to fishing and farming communities that would be upended by the project, who told Reuters that they are opposed to the plan. In the middle of the proposed land bridge corridor in the fertile Phato district, where durian plantations and coffee farms bring in substantial income, some residents question whether this scale of industrialisation is needed at all.

“My hometown’s durian industry alone generates around 10 billion baht a ‌year without needing to build anything new,” said coffee entrepreneur Chalermchart Seekhiao, 30.

“People need to understand: this isn’t an empty wasteland.”

The project suffered a blow this month when regulators ordered a completely new Environmental and Health Impact Assessment because of a large discrepancy between government and private research estimates on the density of marine life near the proposed ports.

“Local opposition alone rarely cancels a top-down mega-project in Thailand, but it acts as a powerful regulatory drag that compounds investor risk,” Mark said. — Reuters

SAN FRANCISCO, June 18 — Outgoing Apple CEO Tim Cook warned that demand for memory chips from the artificial intelligence boom will force the tech giant to increase the prices of its products, according to an interview with the Wall Street Journal published yesterday.

“Unfortunately, price increases are unavoidable,” he told the newspaper, adding that his company has been “trying to shield customers from the increases” but that it had become “unsustainable.”

He did not specify the timing of the increases, how much or which devices would be impacted.

Apple’s next major launch is expected in September, with the iPhone 18 lineup.

“There’s less supply at a time when consumers want devices and the memory guys are passing along huge price increases,” Cook said.

The Wall Street Journal report cited an estimate from research firm TechInsights, which said Apple would need to increase the price of its iPhone Pro model by US$270 (RM1,103) to maintain its current profit margin.

The rapid buildout of AI data centres has sent the cost of memory chips and RAM skyrocketing — as the components are found in nearly all electronic devices — with the chips undergoing quarterly price increases of at least 50 per cent since late 2025.

Cook, who has worked in electronic supply chains throughout his career — including stints at IBM and Compaq before joining Apple — said he has never experienced such a spike in prices, calling it a “hundred-year flood.” — AFP

KUALA LUMPUR, June 18 — Bursa Malaysia opened higher today, underpinned by buying in selected heavyweight stocks despite weaker overnight performance on Wall Street.

At 9.25 am, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.82 points to 1,718.81 from Tuesday’s close of 1,709.99, after opening 12.36 points firmer at 1,722.35.

Market breadth was positive, with gainers outpacing losers 313 to 289. A total of 363 counters were unchanged, 1,771 untraded and 34 suspended.

Turnover amounted to 690.97 million shares worth RM335.54 million.

The market was closed on Wednesday for the Awal Muharram public holiday.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Wall Street ended lower as sellers took control following Federal Reserve Chair Kevin Warsh’s first meeting, with markets anticipating a potential rate hike this year.

He said buying in the domestic market was broad-based, though the focus was mainly on index-linked laggards, particularly telecommunications stocks.

“Encouraged by positive sentiment in West Asia, we expect the index to maintain its uptrend and hover within the 1,705-1,720 range today,” he told Bernama.

Among heavyweights, Maybank and Public Bank rose four sen to RM11.20 and RM5.09, respectively. Tenaga Nasional added two sen to RM14.58, CIMB was seven sen firmer at RM7.85, and IHH Healthcare gained five sen to RM8.84.

Among active stocks, Hong Seng and Zetrix AI fell half-a-sen to one sen and 79.5 sen, respectively. Tanco gained 2.5 sen to 17.5 sen, while Pentech slipped one sen to 30.5 sen and HHRG was flat at eight sen. Newly listed Sum Technology traded at 42.5 sen, up 14.5 sen from its IPO price.

Among top gainers, Hong Leong Industries rose 40 sen to RM18.88, Allianz added 38 sen to RM21.38, Dutch Lady edged up 24 sen to RM32.50 and Batu Kawan increased 20 sen to RM20.80.

Top losers included Malaysian Pacific Industries, which slipped 82 sen to RM48.48, Paragon, down 68 sen to RM1.61, Nestle, which lost 66 sen to RM96.14, and UWC, which fell 15 sen to RM6.05.

On the index board, the FBM Emas Index added 45.57 points to 12,707.75, while the FBM Top 100 Index gained 49.45 points to 12,548.84 and the FBM Emas Shariah Index edged up 29.87 points to 12,504.61.

The FBM Mid 70 Index rose 7.30 points to 18,117.87, while the FBM ACE Index gained 4.51 points to 4,781.50.

By sector, the Financial Services Index surged 129.29 points to 20,414.05, the Plantation Index rose 10.59 points to 8,789.96, and the Industrial Products and Services Index added 0.40 of-a-point to 188.97, while the Energy Index declined 2.66 points to 761.97. — Bernama

SHANGHAI, June 17 — China announced fresh measures on Wednesday to promote the global use of the yuan and unveiled plans to better manage domestic money market liquidity.

Pan Gongsheng, governor of the People’s Bank of China (PBOC), said six banks have been authorised to conduct offshore yuan transactions in the Shanghai free trade zone, a move aimed at promoting offshore yuan business in the city.

Pan also said at the annual Lujiazui Forum in Shanghai that the PBOC will create a tool that would enable overseas central banks, sovereign wealth funds and international financial organisations to obtain yuan liquidity more easily.

China is stepping up yuan internationalisation efforts, in a bid to reduce its dependence on a global payment system dominated by the US dollar.

Pan’s speech came a day after the PBOC’s digital yuan operation centre signed direct participant agreements with 26 financial institutions in Shanghai to promote the global adoption of the digital currency, also known as e-CNY.

Soon after Pan’s speech, the PBOC announced the rollout of an instrument that would provide yuan liquidity to qualified overseas monetary authorities.

In the domestic money market, Pan said China will increase the variety of overnight reverse repo operations to better manage liquidity.

Commenting on China’s decelerating loan growth, Pan said that “it’s difficult and unnecessary for China’s credit growth to maintain its previous pace.”

Preventing systemic risks

At the same event, China’s top banking regulator vowed to prevent systemic financial risk and channel resources to emerging industries, as the country undergoes a painful economic restructuring.

Ding Xiangqun, newly appointed head of the National Financial Regulatory Administration, expressed confidence that regulators will prevent risk from small financial institutions and resolve risk from real estate and local government debt.

“In recent years, cross-border transmission and cross-market spread of financial risks have become increasingly pronounced,” Ding told the annual Lujiazui Forum in Shanghai.

Regulators will “encourage institutions to raise capital through multiple channels to enhance their risk resilience,” Ding said.

China’s economy is witnessing increasing imbalance, with consumption weak and the property sector struggling, but investment is hot in emerging sectors such as robotics and AI. Reflecting the two-speed economy, China’s retail sales in May fell for the first time in over three years and investment slumped, while industrial output picked up pace.

Ding said regulators will guide financial resources to emerging and future industries, and step up regulatory cooperation in emerging areas.

Authorities will also crack down on disorderly competition and prevent illegal financial activities, Ding said. — Reuters

COPENHAGEN, June 16 — A cyber extortion group claimed on Tuesday to have stolen more than a terabyte ‌of data from pharmaceutical giant Novo Nordisk and said it is exploring selling parts of the ​data after unsuccessfully demanding US$25 million (RM101.66 million) from the company.

FulcrumSec, a cyber extortion group that emerged in October 2025, said in a long message posted to its website that it spent more than two months in Novo Nordisk's networks stealing data. 

It said ​that data included company source code, proprietary information on released and unreleased drugs, trial data, employee, doctor and patient data, information related to company processing facilities and internal AI model information. 

A Novo Nordisk spokesperson said in an email that the company “is aware of claims that data allegedly copied externally without authorisation from our systems has been published online. We take this matter seriously and ‌maintain continued operations of our main platforms. We are in contact with the relevant authorities.”

Reuters could not immediately ⁠verify the authenticity of the data posted by the ⁠hacking group. FulcrumSec also did not immediately respond to a request for ⁠comment. 

The Danish company disclosed a cybersecurity ⁠incident on June 11 that ⁠it said involved unauthorized access to a limited number of internal IT systems that included access to certain personal data.

FulcrumSec said that after Novo Nordisk refused to pay US$25 million, it was “exploring private sales” for some ⁠of the data related to certain drugs and other internal data.

Thomas Willkan, head of research at cybersecurity firm Lab-1, who has closely tracked FulcrumSec, said the hacking group is “usually quite legit in terms of both their capabilities and also their claims.” 

FulcrumSec said it would not share some of the data it stole, including information on thousands of company employees and physicians, and roughly 11,500 pseudonymised clinical trial patients.

The group said ⁠it also would withhold data related to operational technology and software used to interact with sensors and machinery at Novo Nordisk production facilities as part of its “harm-reduction strategy”.

Novo Nordisk is known for ⁠its treatments for obesity and diabetes, notably Wegovy and Ozempic.

DataBreaches.net, a blog focused on cybersecurity, ransomware and data extortion, ⁠reported on ⁠June 15 that FulcrumSec told the blog on June 14 it gained access to Novo Nordisk's network in March, and ​shared purported correspondence with Novo Nordisk starting June 1 that included ​a list of more than 700,000 files, making up ‌roughly 1.3 terabytes of data.

VX-Underground, a malware research and repository ​site, reported separately on Monday about an ​unnamed hacker having compromised Novo Nordisk. FulcrumSec said in its message that its attack is separate. — Reuters

BEIJING, June 17 — Investors have valued Chinese artificial intelligence startup DeepSeek at more than US$50 billion (RM203 billion) in the company’s first fundraising round, reports said.

The firm released its latest AI model in April, having stunned the world in 2025 with a low-cost chatbot that matched the power of US rivals.

It recently raised more than 50 billion yuan, the Wall Street Journal and The Information said this week, citing people with knowledge of the matter.

That values the company at more than US$50 billion, they said. DeepSeek did not respond to AFP’s request for comment.

Training and running cutting-edge AI models is an expensive business, requiring billions of dollars in computing infrastructure.

But despite their grand ambitions, for now the world’s biggest AI companies are loss-making ventures trying to work out how to turn a profit in the future.

Washington says DeepSeek’s latest model — among China’s most advanced — is about eight months behind the top offerings from US companies.

US startup Anthropic is valued at US$965 billion following a US$65 billion fundraising round, while ChatGPT-maker OpenAI was valued at $852 billion in March.

Both US firms have filed to go public in recent weeks — suggesting the process of raising record amounts of private investment may have reached its limits.

The Wall Street Journal and The Information said DeepSeek founder Liang Wenfeng made the biggest investment of the round at around 20 billion yuan.

Liang has set up an unusual fundraising structure that allows him to retain control of DeepSeek through a limited partnership that he manages, they said.

The outlets added that China’s government-backed National Artificial Intelligence Industry Investment Fund also invested around one billion yuan directly into DeepSeek.

Other investors reportedly included Chinese tech giant Tencent, e-commerce firm JD.com, battery maker CATL and video game publisher NetEase. All the companies declined to comment or did not reply to AFP.

DeepSeek’s systems are open-source — meaning their inner workings are public, allowing programmers to customise parts of the software to suit their needs.

But like other Chinese chatbots, DeepSeek’s AI tools eschew topics usually censored in the world’s second-largest economy, such as the 1989 Tiananmen crackdown. — AFP 

HONG KONG, June 17 — Oil prices extended losses Wednesday and most equity markets rose, fuelled by the US-Iran deal, with attention now on peace talks and the reopening of the crucial Strait of Hormuz.

Crude has tumbled more than 10 per cent this week on optimism for a lasting agreement between the two countries after more than three months of conflict that rattled energy markets and revived inflation.

The latest selling was boosted by a report in The Wall Street Journal that Washington could ease sanctions on Iranian crude as part of the deal to end the war, allowing Tehran to immediately sell crude and refined oil products.

Attention now turns to Friday’s official signing ceremony in Switzerland and the subsequent negotiations that will focus on the fate of Tehran’s nuclear programme and a plan for the lifting of international economic sanctions.

US President Donald Trump has said the Strait of Hormuz — through which a fifth of global crude usually passes — would “completely open” once the peace agreement is signed.

Both main contracts started Wednesday slightly higher after shedding more than five per cent on Tuesday before turning negative, though analysts warned that with so many hurdles ahead prices were likely to be sensitive to developments.

“The risks are skewed to the upside,” said Fabien Yip, market analyst at IG.

“Any failure at the 19 June signing to produce a durable and transparent agreement — particularly on nuclear provisions — could rapidly reverse the recent decline, as each prior false start has demonstrated.

“A sustained recovery in strait traffic remains the most credible evidence that the deal is holding.”

Meanwhile, oil industry experts and shipping companies have cautioned that the restoration of normal operations after the strait’s near shutdown will take time.

Equity markets mostly advanced ahead of the Federal Reserve’s first policy announcement under new, Trump-appointed boss Kevin Warsh.

Tokyo and Seoul enjoyed their best finishes — both markets building on their breakneck tech rallies.

Shanghai, Sydney, Singapore, Mumbai and Taipei also rose, though Hong Kong, Wellington, Manila, Bangkok and Jakarta all fell.

London rose but Paris and Frankfurt edged down.

The broad gains came after a mixed day on Wall Street, where the Dow hit a fresh record high but the S&P 500 and Nasdaq retreated.

While expectations are for the Fed to stand pat on interest rates, investors will be keeping a close eye on its post-meeting statement for an idea about the policy committee’s thinking in light of surging inflation and a strong jobs market.

Data last week showed US consumer prices rose in May at their highest level for three years owing to the impact of surging oil costs caused by the war.

Some observers predict the Fed will eventually announce an increase before the end of the year, despite Trump’s previous demands for cuts.

“Warsh... inherits the most divided committee in more than three decades, with three voting members already dissenting against the easing bias in April, while outgoing governor Stephen Miran again voted in favour of a rate cut,” said Michael Krautzberger, chief investment officer for public markets at AllianzGI.

“The minutes suggested that the committee’s centre of gravity has shifted in a more hawkish direction as uncertainty about the duration and economic implications of the Middle East conflict continues to mount.”

He added that “resilient economic activity and indications that labour-market conditions are stabilising support a less accommodative policy outlook”.

“In a rapidly evolving economic and geopolitical environment, we expect the (bank) to remain on hold this year,” he said.

“But resilient growth, a stabilising labour market and increasing inflation pressures have shifted the balance of risks in a hawkish direction.” — AFP 

PARIS, June 17 — French department store BHV and online fast-fashion retailer Shein have ended their partnership, just seven months after the opening of a permanent Shein shop in the Paris department store triggered controversy and widespread criticism.

Société des Grands Magasins (SGM), which has operated BHV in Paris since 2023, said it is selling the Parisian department store to its current management team led by Karl-Stéphane Cottendin.

Cottendin said BHV would end its partnership with Shein, describing it as a mistake, according to a spokesperson.

BHV drew criticism for the tie-up with Shein because of the Singapore-based company’s business model of rock-bottom pricing and the sale of illegal products on its platform.

Shein said in a statement that the collaboration with SGM had always been intended to be temporary.

Shein’s launch at BHV in November was met with protests and, on opening day, the French government launched an attempt to shut down its platform, a move later overturned by a Paris court.

Loyal Shein shoppers who had queued up for the launch were also underwhelmed by the store’s offering, with many saying prices were much higher than on Shein’s vast online platform, known for US$5 (RM20.34) dresses and US$10 (RM40.68) jeans.

SGM had been struggling before the Shein partnership, falling behind on payments to suppliers, and the Shein launch prompted many brands to leave the department store in protest.

Shein today said it respects BHV’s decision but added that it was “regrettable” customers had to navigate ongoing construction works in the department store. — Reuters

TOKYO, June 17 — Fujitsu’s chairman has stepped down over “woman-related inappropriate conduct”, the Japanese computing systems firm told AFP on Wednesday.

Hidenori Furuta’s departure, effective Tuesday, came after the company became aware of the issue this month, a spokesman said on the customary condition of anonymity.

The spokesman declined to discuss the details of the matter but noted the personnel move was not prompted by any violation of the law.

There are no immediate plans to replace him, the spokesman added.

Furuta assumed the role of Fujitsu’s chairman in 2024 after serving as executive vice president and chief technology officer.

Fujitsu — which has headquarters in Tokyo — is one of the world’s largest IT services providers.

The firm was at the centre of an IT scandal at British Post Office branches after errors in Fujitsu’s accounting software incorrectly made it appear that money was missing from accounts.

The Post Office wrongfully prosecuted around 1,000 subpostmasters — self-employed branch managers — between 1999 and 2015. — AFP 

HONG KONG, June 17 — Asian investors trod water Wednesday after a breathtaking start to the week fuelled by the US-Iran deal, with attention now on peace talks and the planned reopening of the crucial Strait of Hormuz.

Oil prices edged up in early exchanges, a day after plunging more than five percent on optimism for a lasting agreement between the two countries after more than three months of conflict that rattled energy markets and revived inflation.

Tuesday’s selling was ramped up by a report in The Wall Street Journal that Washington could ease sanctions on Iranian crude as part of the deal to end the war, allowing Tehran to immediately sell crude and refined oil products.

Attention now turns to Friday’s official signing ceremony in Switzerland and the subsequent negotiations that will focus on the fate of Tehran’s nuclear programme and a plan for the lifting of international economic sanctions.

US President Donald Trump has said the Strait of Hormuz — through which a fifth of global crude usually passes — would “completely open” once the peace agreement is signed.

Both main contracts have tumbled this month as hopes for a deal grew, though analysts warned that with so many hurdles ahead prices were likely to be sensitive to developments.

“The risks are skewed to the upside,” said Fabien Yip, market analyst at IG. “Any failure at the 19 June signing to produce a durable and transparent agreement — particularly on nuclear provisions — could rapidly reverse the recent decline, as each prior false start has demonstrated.

“A sustained recovery in strait traffic remains the most credible evidence that the deal is holding.”

Meanwhile, oil industry experts and shipping companies have cautioned that the restoration of normal operations after the strait’s near shutdown will take time.

Equity markets fluctuated ahead of the Federal Reserve’s first policy announcement under new, Trump-appointed boss Kevin Warsh.

While expectations are for the central bank to stand pat on interest rates, investors will be keeping a close eye on its post-meeting statement for an idea about the policy committee’s thinking in light of surging inflation and a strong jobs market.

Data last week showed US consumer prices rose in May at their highest level for three years owing to the impact of surging oil costs caused by the war.

Some observers predict the Fed will eventually announce an increase before the end of the year, despite Trump’s previous demands for cuts.

“Warsh... inherits the most divided committee in more than three decades, with three voting members already dissenting against the easing bias in April, while outgoing governor Stephen Miran again voted in favour of a rate cut,” said Michael Krautzberger, chief investment officer for public markets at AllianzGI.

“The minutes suggested that the committee’s centre of gravity has shifted in a more hawkish direction as uncertainty about the duration and economic implications of the Middle East conflict continues to mount.”

He added that “resilient economic activity and indications that labour-market conditions are stabilising support a less accommodative policy outlook”.

“In a rapidly evolving economic and geopolitical environment, we expect the (bank) to remain on hold this year,” he said.

“But resilient growth, a stabilising labour market and increasing inflation pressures have shifted the balance of risks in a hawkish direction.”

In early trade, Tokyo and Seoul rose again — building on a tech-led rally — while Shanghai, Sydney, Singapore and Jakarta were also up.

But Hong Kong, Wellington, Taipei and Manila edged down.

That came after a mixed day on Wall Street, where the Dow hit a fresh record high but the S&P 500 and Nasdaq retreated. — AFP 

TOULOUSE, June 17 — Qantas Airways is set on Wednesday to unveil the first destination for the world’s longest non-stop flights from eastern Australia to London or New York, tackling one of the few unbroken barriers of air travel after years of delays.

The “Project Sunrise” plan to bypass Middle Eastern and Asian hubs on London flights and offer direct services on modified Airbus long-haul jets has been in the works since 2017 and is due to enter service by the end of next year.

The aim is to compress what was once a five-day trek on the “Kangaroo Route” to London to 22 hours at most, depending on routes and winds. The trip now takes 24 to 25 hours via Singapore.

New York, which Qantas currently serves from Sydney via Auckland, is also among the initial destinations, but the airline has so far not said which will be introduced first.

The project is a major gamble for the Australian carrier, which has bet billions on fleet changes, cabins and research into the health effects of crossing the planet in a single flight.

To succeed it must persuade passengers to pay more to avoid layovers, while minimising the discomfort from long flights.

“What they are selling is time, and they absolutely need to get a premium on all the cabins, particularly business and premium economy,” said aviation analyst John Strickland.

Qantas named Project Sunrise after the airline’s double sunrise endurance flights during World War Two, which remained airborne long enough to see two sunrises.

The airline has estimated the project could add more than A$400 million (RM 1.15 billion) a year to earnings. Qantas CEO Vanessa Hudson said in February it was based on the assumption the non-stop flights could attract ticket prices around 20 per cent higher than one-stop alternatives in premium cabins.

But analysts say high energy prices resulting from the Gulf conflict have raised the bar for breaking even.

‘Positive market’

Jefferies analysts said in a note in April — after the initial US-Iran ceasefire but before this week’s interim peace deal — that passengers would continue to prefer flying direct to Europe via Perth or switching from Middle Eastern to Asian hubs through 2027.

“Consequently, we expect a positive market for Project Sunrise flights to London,” they said.

Gulf carriers like Emirates, which redrew the aviation map around their hubs, have indicated they will defend their market. Aiding their efforts, the Australian government on Wednesday lifted a months-long “do not travel” warning on Gulf hubs that had voided most travel insurance policies even for those in transit.

Qantas is due to outline the economics of the new direct flights to investors, and pitch its customised cabins to a wider audience at an event in Toulouse on Wednesday.

Airbus won the Project Sunrise order after an intense battle with Boeing’s 777X in 2019.

Earlier this month, it staged the first test flight for one of 12 modified A350-1000ULR planes ordered by Qantas.

The 238-seat planes feature an extra rear-centre fuel tank helping to increase the range by 1,000 nautical miles (1,852 km) to 10,000 nautical miles. The flights are so long that much of the fuel will be used merely to carry the weight of the rest of the fuel.

The first of the planes is set to be delivered in April 2027, about five years later than originally expected due to the Covid-19 pandemic and then widespread aerospace supply chain issues.

Reuters reported this month that Qantas is in talks to buy 20 more Airbus or Boeing wide-body jets, with the smaller A350-900 or more Boeing 787s under consideration. — Reuters 

WASHINGTON, June 17 — The US Federal Reserve is expected to hold interest rates steady on Wednesday at Kevin Warsh’s first meeting in charge of the central bank, with rate hikes potentially on the horizon to combat surging inflation.

Warsh has presided over the two-day meeting of the Fed’s open market committee (FOMC) this week, with a decision to be announced at 2pm local time (1800 GMT) on Wednesday.

US inflation came in at a three-year high in April. It has been fuelled this year by President Donald Trump’s war on Iran, which saw energy prices skyrocket, with knock-on effects on a range of sectors.

With the labour market firming, Fed policymakers flagged an increased concern about inflation, and rate hikes are potentially in the pipeline to tame raging prices.

Such a move would be sure to anger Trump, who has launched an unprecedented campaign of intimidation to pressure the Fed to lower interest rates.

Warsh has backed interest rate cuts in the recent past, despite inflation remaining well above the Fed’s long-term two-per cent target — it was 3.8 per cent in April, according to the central bank’s preferred gauge.

On Wednesday, however, analysts expect Warsh to join other policymakers in allowing the energy price shock to wash over the world’s largest economy before making a move.

“I think he’s going to be in the wait-and-see camp,” said Dan North of Allianz Trade. “It’s pretty hard to justify a cut when you’ve got inflation in the pipeline already.”

‘Fractured’ 

While Wednesday’s decision is all but certain to hold interest rates at a range between 3.50 and 3.75 per cent, all eyes will be on the language the Fed uses in its statement.

At least four of 12 voting members of the committee have backed a change in wording to indicate that the next rate move could just as likely be a hike as a cut.

Warsh himself has called for removing the Fed’s forward guidance messaging altogether, arguing that it locks policymakers into a position rather than allowing them to react to changing situations.

Still, change at the central bank tends to be gradual, and analysts do not expect Warsh to take a big swing at his first meeting in charge.

“It may be a more fractured environment, certainly,” Greg Daco, chief economist at EY-Parthenon, told AFP.

“In this first instance, he may be going to suggest some changes to communication, and we may be in the early steps of a move towards more discretionary decisions when it comes to monetary policy.”

Wednesday’s announcement will also see the release of the Fed’s quarterly summary of economic projections, which includes policymakers’ expectations on inflation, growth and the interest-rate path.

As part of his “reform-oriented” agenda, Warsh has called for the Fed to drop its “dot-plot,” an anonymized projection of where Fed leaders expect rates to go.

On Wednesday, the new Fed chair is expected to withhold his own “dot,” but analysts say he is unlikely to drop the entire exercise immediately.

‘Not helping his case’ 

Pao-Lin Tien, an economics professor at George Washington University, told AFP that moving towards more opaque monetary policymaking could mean inflation expectations are less anchored.

“I think our fear would be that without the forward guidance, inflation expectations might become a little bit more volatile,” she said.

As for Trump, any move short of a rate cut is likely to anger the Republican, who wants to see the Fed lower borrowing costs to increase economic activity — despite the already high inflation.

“President Trump is not helping his own case by making these demands so openly, it makes it harder for anyone he appoints to actually do that,” said Tien.

“He does the opposite of what he needs to do in order to make sure the rates go lower,” she added, referring to the war on Iran. — AFP 

KUALA LUMPUR, June 17 — Airbus has confirmed that AirAsia X’s order for 15 Airbus A330-900 aircraft has been cancelled by mutual agreement between the two parties.

“Airbus can confirm that the order was cancelled by mutual agreement,” an Airbus spokesperson told Bernama.

It was reported that the previously announced cancellation follows a shift across the AirAsia Group towards long-range narrowbodies.

However, AirAsia X declined to comment on the matter.

Initially, all the A330neo aircraft ordered by AirAsia X were the larger A330-900 model, offering the range to operate non-stop services to Europe, including between Kuala Lumpur and London. 

Earlier this year, the group placed an order for 50 Airbus A321XLR aircraft as part of its network expansion plans. — Bernama 

FRANKFURT, June 17 — German carmaker BMW downgraded its 2026 targets Tuesday due to turmoil from the Middle East war and worsening business in key market China, and vowed to step up cost-cutting efforts.

It is the latest bad news from Germany’s ailing auto sector, and a major blow for a manufacturer which had so far endured industry upheaval better than its peers Volkswagen and Mercedes-Benz.

Munich-headquartered BMW said it now expects a “significant” decrease in pre-tax profit this year, against a previous expectation for only a moderate decrease.

It forecast a slight fall in vehicle deliveries, compared to a previous prediction for them to remain stable.

And profit margins in its auto division — closely watched as a measure of the company’s overall health will come in between one to three percent, down from an earlier expectation of four to six per cent.

CEO Milan Nedeljkovic said BMW would “adapt our current structures and processes to the drastic downturn in market conditions”.

“It is our entrepreneurial responsibility... to significantly intensify and accelerate our ongoing measures,” he added in a statement.

He did not give further details, but the group said cost-cutting would hit its earnings in the second half of 2026.

Giving reasons for the downgrades, BMW said problems in China — where it faces fierce competition from local rivals and a sluggish market — “accelerated further in the second quarter, particularly for non-electric vehicles”.

“Positive sales volume development in Europe and the US cannot offset the decline in sales in China and the Asia-Pacific region,” it said.

In addition, the impact of the US-Israeli war against on Iran was worse than originally feared, it added.

High energy prices were weighing on the group and global instability was hitting consumer sentiment worldwide, the company said.

The United States and Iran announced a deal this week to end the conflict, and ships have again begun passing through the Strait of Hormuz, a key energy route.

BMW was able to weather the US tariff blitz better than its rivals in large part because its biggest plant worldwide is in the US state of South Carolina.

Profits at the carmaker, whose brands also include Mini and Rolls-Royce, held up relatively well in 2025 compared to VW and Mercedes. — AFP 

PARIS, June 17 — Oil and gas majors have high hopes for a quick reopening of the Strait of Hormuz, but they have few illusions about a return to normal for the Gulf energy industry after more than three months of blockage.

Even if the deal between Iran and the United States to end the Mideast war holds, analysts say the old market certainties are gone for good – and the new risks will probably require costly adaptions.

Business as usual?

“A credible reopening of the Strait of Hormuz would be one of the most important developments for the global economy at this juncture,” said Claudio Galimberti, chief economist at Rystad Energy.

The shock of a near-doubling of oil prices since Iran effectively closed off the crucial waterway has fuelled inflation that could persist for months, threatening growth around the globe.

Its closure exposed the vulnerability of Gulf supply chains – and now the prospect of Iranian tolls on tanker and cargo traffic.

Iran’s foreign ministry spokesman Esmaeil Baqaei has evoked maritime “service fees” on ships transiting the strait, which companies are likely to pass on to customers.

“We’re in a whole new era,” French expert Philippe Chalmin of the raw materials consulting group Cyclope said this month in presenting its annual market outlook, an industry reference.

“Hormuz can be blocked – no one had imagined that,” he said, noting that a toll was likely.

Energy firms appear to have resigned themselves to the fact, with TotalEnergies chief Patrick Pouyanne saying in April that “compensation” to Iran is preferable to having the strait stay closed.

A woman walks past a billboard displaying Iran’s national flag at Enghelab Square in Tehran on June 14, 2026. — AFP pic

What’s the immediate impact?

Oil prices fell sharply after the deal was announced to around US$80 a barrel, though that remains above the mid-US$60s seen before the war.

“We’re really waiting for the signature of a concrete agreement and tangible proof that the Strait of Hormuz is reopening,” said Blandine Ruty, secretary general of the French petroleum industry association Ufipem.

She predicted that prices would fall further “if there indeed are signs of political stability”.

However, if market sentiment has clearly improved, “sentiment is not the same as supply”, said Rystad’s Galimberti.

Retaliatory strikes by Iran have targeted oil and gas infrastructure in several Gulf countries seen helping the US attacks, taking many pumps and refineries offline.

“It will take time for production to ramp back up, for logistics to normalise, and for the risk premium embedded in crude prices to dissipate,” he said.

He also noted the United Arab Emirates’ decision during the war to quit OPEC, hindering the Saudi-dominated cartel’s ability to control oil prices.

Chalmin at Cyclope meanwhile said “there are doubts that some wells will be able to quickly start flowing again – It’s not just a tap you turn back on”.

How will the industry adapt?

“This war showed the oil and gas industry that Hormuz risk is no longer just a geopolitical headline. It is a logistics, insurance, storage and balance sheet risk,” said Stephen Innes, an analyst at SPI Asset Management.

He predicted the industry would shift from “just-in-time” to “just-in-case” logistics that mean “more storage, more flexible shipping, more diversified crude and LNG sourcing, and more planning around war-risk insurance”.

The UAE has already said it will fast-track construction of a new oil pipeline bypassing the Strait of Hormuz by reaching the port of Fujairah on the Gulf of Oman.

But that marginally eases shipping risks only for crude oil, given the overwhelming importance of tanker shipments – Liquefied natural gas (LNG) exports require ships for reaching key Asian and European markets.

“For refined products and LNG, if the Strait of Hormuz is blocked, you’re blocked 100 per cent,” said Francis Perrin of the French Institute for International and Strategic Affairs (IRIS), a contributor to Cyclope’s annual report.

Even if producers build more “resilience” into their operations, it will be reflected in their costs.

“The industry should rethink storage, pipelines, production diversity and transit routes, but only within realistic limits,” Innes said.

“You can build buffers, but you cannot build another Hormuz overnight.” — AFP

SYDNEY, June 16 — KPMG’s audit-leak ‌scandal is set to further dampen the prospects in Australia of the Big Four accounting firms, with data showing ​their new business revenue from the federal government already fell by almost half after a similar leak at PwC three years ago.

A Reuters analysis of government tenders showed that new contracts the Big Four firms KPMG, PwC, Deloitte and EY signed with the federal Australian government ‌slumped to A$348 million (RM997 million) in 2025 from A$637 million in the prior year.

That underscores the scale and speed at which the ​government is prepared to distance itself from the bigwigs of the A$1.8 billion industry and gives a sense of the potential impact that KPMG, its biggest professional services contractor, may face.

KPMG is embroiled in a scandal after allegedly sharing confidential company information with prospective private-sector clients to bid for auditing work. Its CEO and top auditor have quit after the firm admitted it mishandled a whistleblower complaint ​about the alleged misconduct, and it hired its own third-party governance consultant to review its practices as it races to contain a client exodus.

The Australian government said on Tuesday KPMG will not bid for new federal work until September 30. And the Reserve Bank of Australia has said it would likely not reappoint KPMG to run its whistleblower hotline.

KPMG has about A$650 million of active federal contracts, from anti-slavery supply chain audits to cybersecurity services, according to a Reuters review of published information that was verified by lawmakers.

PwC was rocked in 2023 by revelations it shared confidential tax policy details to win clients, forcing it to forgo ‌new government contracts for more than a year and sell its government advisory business, which had accounted for a fifth of its revenue, for a paltry A$1.

Brendan Lyon, ⁠a former KPMG partner, said government work is a big portion of the Big ⁠Four’s revenue and losing hundreds of millions annually could threaten the firms’ financial health.

“It’s undoubtedly going to have impacts ⁠and that’s been discussed by government politicians and various ⁠government departments,” Lyon said.

KPMG, PwC, Deloitte and ⁠EY declined to comment.

PwC’s revenue fell 26 per cent in the 2024 financial year following the fire sale of its government advisory business.

If the claims against KPMG are proven, the firm could likely face a similar fate, said Stephen Bartos, a former deputy secretary at the Department of Finance.

“It gives rise to apprehensions by government agencies that there might be ⁠misuse of confidential materials from government. And therefore, government agencies will be more reluctant to use KPMG,” he said.

“They could be facing state governments cutting back as well. Collectively, it amounts to more than federal government work.”

Parliamentary inquiries

Australia, the world’s 12th-biggest economy, had spent years building ties to contractors to satisfy public appetite for a smaller government sector. With the scandals increasing, there could be a further roll-back of those moves now.

Last year, Deloitte apologised after academics found a report it prepared for the Department of Employment and Workplace Relations contained AI-generated fabrications.

The Big Four’s controversies are not limited to Australia. In recent years, they have each been sanctioned over audit misconduct in the ⁠UK. In the US, EY agreed to pay US$100 million (RM400 million) in 2022 to settle charges its staff cheated on accountant exams.

Parliamentary inquiries in Australia triggered by the PwC scandal resulted in dozens of recommendations to close regulatory loopholes, including a cap on partner numbers to improve accountability and a ban ⁠on providing both audit and consultancy services to prevent conflicts of interest.

The recommendations for major changes, however, have not been implemented.

“It’s time to force these ungoverned multi-million-dollar partnerships to adopt ⁠the same disciplines ⁠as large corporations,” said Barbara Pocock, a Greens senator who has campaigned for tougher regulation of Big Four consultancies.

“They have lost their social licence to special treatment on tax, transparency, and treatment of whistleblowers. ​It’s time to break them up and properly regulate them as parliamentary inquiries have repetitively recommended.”

Richard Colbeck, ​a conservative senator who chaired an inquiry on use of external consultants, said successive ‌scandals at PwC and KPMG suggested “there’s probably a bit of a shake-up coming in that section of the market”.

“Every ​government department is being asked by one or ​other of my colleagues how many contracts they have with KPMG. And every single department that I’ve heard asked has said, ‘we’re reviewing our contracts’,” he added. — Reuters

KUALA LUMPUR, June 16 —The ringgit closed lower against the US dollar today as investors remained cautious following the Bank of Japan’s (BOJ) decision to raise interest rates. 

At 6 pm, the local note fell to 4.0665/0700 versus the greenback from 4.0485/0525 at yesterday’s close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the BOJ’s decision to raise its policy rate prompted investors to remain cautious despite declining crude oil prices.

The Japanese central bank increased its policy rate by 25 basis points to 1.00 per cent, as widely expected, marking the highest level since 1995, he noted.

“The decision was premised on rising inflation and improving economic growth conditions, which make the extremely accommodative monetary policy increasingly inappropriate,” Mohd Afzanizam told Bernama. 

At the close, the ringgit was lower against a basket of major currencies.

It depreciated against the Japanese yen to 2.5360/5384 from 2.5283/5309 at Monday’s close, weakened versus the British pound to 5.4552/4599 from 5.4355/4409 yesterday, and slipped vis-a-vis the euro to 4.7175/7216 from 4.6987/7033.

The local note also eased against regional currencies.

It weakened against the Thai baht to 12.5027/5192 from 12.4294/4474 at Monday’s close, slid versus the Indonesian rupiah to 229.3/229.7 from 228.5/228.9 yesterday, dropped vis-a-vis the Philippine peso to 6.74/6.75 from 6.69/6.70, and declined against the Singapore dollar to 3.1722/1752 from 3.1580/1613. — Bernama

TOKYO, June 16 — The Bank of Japan hiked interest rates to a 31-year high on Tuesday as it battles inflation caused by the Middle East war — even after Washington and Tehran agreed a peace deal.

The central bank for the world’s fourth-largest economy raised its benchmark rate 25 basis points to 1.0 percent, the highest since 1995 and marking the first increase since December.

The widely expected decision followed rate rises by the European Central Bank and in Indonesia last week after the conflict caused economic havoc and rising prices worldwide.

With US inflation at a three-year high, expectations are growing that the Federal Reserve will follow suit, albeit not at new boss Kevin Warsh’s first gathering this week.

“While higher crude oil prices have been exerting downward pressure on economic activity, the economy has generally been supported by factors such as high levels of corporate profits and an improvement in the employment and income situation,” the BoJ said.

The consumer price index (CPI) has been below two percent thanks in part to government energy subsidies.

“However, the price pass-through stemming from the rise in crude oil prices has been progressing at a relatively fast pace in business-to-business transactions, which could spread to an increase in consumer prices across a wide range of items,” the central bank added.

“Against this backdrop, taking into account that medium- to long-term inflation expectations have also continued to rise, there is a risk of underlying CPI inflation deviating upward to a level above the price stability target of two percent.”

Looking ahead, the BoJ said that it will “continue to raise the policy interest rate and adjust the degree of monetary accommodation”.

“In this regard, it will consider the timing and pace of adjustment, while closely monitoring the impact of the future course of the situation in the Middle East on Japan’s economic activity and prices,” it said.

It also indicated that it would pause the tapering of its colossal programme of bond purchases after next April.

US-Iran deal

The United States and Iran agreed to end their three-month war on all fronts and reopen the Strait of Hormuz, through which pre-conflict about a fifth of world oil and gas passed.

The accord was set to be physically signed in Switzerland on Friday, but hundreds of ships remain stuck, and it will likely take considerable time for trade flows to normalise.

Japan relied on the Middle East for around 90 per cent of its crude supplies before the war began on February 28.

Its problems have been exacerbated by a falling yen, caused by the rise in oil prices and the gap between US and Japanese interest rates, which are among the lowest in the developed world.

The government spent around 11.7 trillion yen (US$72 billion) last month propping up the currency, which has been languishing at around 160 yen against the dollar.

The yen briefly jumped against the dollar after the announcement on Tuesday, while the Nikkei 225 stock index rose above 70,000 points for the first time.

BoJ deputy governor Shinichi Uchida was slated to address the media on Tuesday afternoon after the rate decision, filling in for governor Kazuo Ueda, who is in hospital.

The central bank is under pressure from markets to keep tightening interest rates, and also from Prime Minister Sanae Takaichi’s government not to snuff out growth with high borrowing costs.

The BoJ began hiking rates from below zero in 2024 after nearly two decades of ultra-loose monetary policies.

Akino Fukuda at Moody’s Analytics said Tuesday’s move was “another step toward policy normalisation”.

“Real rates remain negative, financial conditions are still relatively loose, and inflation pressures are turning higher, so more hikes are necessary,” Fukuda said.

“The question now is the pace.” — AFP

KUALA LUMPUR, June 16 — Platforms that foster innovation, inclusion, and sustainable growth, such as TikTok, support Malaysia’s efforts in building a digitally driven society, said the Malaysia Digital Economy Corporation (MDEC).

MDEC chief executive officer Anuar Fariz Fadzil said with an estimated contribution of one per cent to Malaysia’s nominal gross domestic product (GDP) and four per cent to the digital economy, TikTok’s presence in the local digital landscape is significant.

“This underscores the growing importance of platforms such as TikTok Shop, and how the digital world of commerce has reshaped the way Malaysians socialise, discover, and buy products.

“This evolution expands access, lowers barriers to entry, and enables businesses of all sizes to reach markets that were once beyond their grasp,” he stated in TikTok’s Malaysia Socioeconomic Impact Report 2025.

Anuar Fariz said the shift goes beyond e-commerce growth, reflecting a deeper form of digital empowerment where trust, storytelling and engagement translate attention into economic opportunity.

Commenting on the report, he said it highlights tangible outcomes of TikTok’s comprehensive ecosystem in Malaysia, including support for 147,000 jobs, activation of over one million local businesses and digital skills training for more than 100,000 micro, small and medium enterprises (MSMEs) through TikTok’s collaborations with agencies such as MDEC.

“These outcomes translate into real income, earned regularly, and flowing directly into the pockets of Malaysians,” he said.

He said digital empowerment is not only about growth, but also about ensuring Malaysia achieves sustainable development alongside fair and equitable distribution across income groups, ethnicities, regions and supply chains.

“As Malaysia continues its digital journey, empirical research and data such as those presented in this report play an important role in informing policy, shaping industry practices, and strengthening public understanding.

The opportunities within the digital economy are substantial, but their true value lies in how they contribute to Malaysia’s long-term aspiration of building an AI Nation.

“I commend TikTok for the meaningful effort in advancing digital empowerment. Through continued partnership between government, industry, and the wider community, we can build a digital economy that translates opportunity into real outcomes for the rakyat,” he said. — Bernama

WASHINGTON, June 16 — The International Monetary Fund chief on Monday welcomed the ceasefire agreement between the United States and Iran, but warned it would take time for energy and other supply disruptions to dissipate.

“As we have said before, much depends on the duration and intensity of the energy supply shock,” Kristalina Georgieva wrote in a post on the Fund’s website.

“The sooner it is resolved, the better — especially as supply will take time to recover given the significant infrastructure damage — and Sunday’s ceasefire announcement is welcome.”

The United States and Iran announced a deal on Sunday to end the Middle East war on all fronts and reopen the vital Strait of Hormuz, sparking relief after months of deadly violence and global economic chaos.

Georgieva also announced that the Fund would be releasing an update to its World Economic Outlook (WEO) — which includes growth and inflation projections — on July 8.

At its last WEO update in April, the Fund downgraded global growth projections due to the impact of the war.

Given uncertainty around the duration and intensity of the conflict, the IMF issued a range of scenarios, with the “severe” case showing global growth falling to two percent and inflation spiking to above six percent.

On Monday, Georgieva reiterated that there remained “a clear risk to global growth” from the conflict, and warned that there were “significant disparities” on its impacts.

“It is the countries that combine heavy reliance on energy imports with limited policy space that are especially hard-hit,” she said, adding that the strain was visible in Africa.

She cited fuel shortages in Ethiopia, Malawi and Zambia, with high fuel prices threatening consumers in Lesotho, Rwanda and Tanzania.

Earlier this month, the Fund announced it was providing increased or faster access to funds to Ethiopia, The Gambia and Burkina Faso, and said it was in “accelerated” talks with Malawi for a new financial assistance programme.

Emerging market economies in Asia have also been hard hit, with retail prices of gasoline increasing by 40 per cent since the war began, she said.

Georgieva said the Fund was prepared to offer financial support to member countries, but that most governments had so far asked for policy guidance rather than cash bailouts.

She warned that oil-exporting countries in the Gulf had been badly hit by the war, and face “steep downward revisions to growth this year, with five out of eight countries seeing outright contractions.” — AFP

NEW YORK, June 16 — SpaceX shares shot higher Monday as the company said it raised a record-breaking US$85.7 billion.

The completed sale cements SpaceX’s stellar debut on Wall Street, eclipsing the previous largest IPOs and helping make Musk the world’s first trillionaire.

The stock climbed as much as 8.7 per cent in Monday trading, extending Friday’s 19 percent jump hours after the shares first started trading on the Nasdaq.

In late morning trading in New York, the company’s market value sat at more than US$2.2 trillion, putting it among the seven largest companies in the world — ahead of Broadcom, Saudi Aramco and Tesla.

Demand for SpaceX’s shares was so strong that the banks running the sale exercised a so-called greenshoe option — in effect permission to sell extra shares when investors want more than planned.

SpaceX ended up selling nearly 639 million shares, including more than 83 million extra ones, lifting the total raised to US$85.7 billion beyond the originally planned $75 billion.

Co-founded by Musk in 2002, the rocket startup has since expanded into a major satellite operator and folded in his artificial intelligence company, xAI, which includes the social media platform X, formerly Twitter.

The towering valuation rests heavily on the belief that Musk will deliver on promises worthy of science fiction, including putting humans on Mars and data centers in space using as-yet unproven technology. — AFP

KUALA LUMPUR, June 16 — Bursa Malaysia opened slightly lower on Tuesday as investors locked in gains following the previous session’s rally, with early profit-taking weighing on the benchmark index.

At 9.10am, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 4.48 points to 1,686.91 from Monday’s close of 1,691.39.

The benchmark index opened 0.07 of-a-point lower at 1,691.32.

Market breadth was negative, with losers outnumbering gainers 221 to 174. A total of 324 counters were unchanged, 1,990 untraded, and 25 suspended.

Turnover stood at 302.68 million shares worth RM143.85 million. 

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Wall Street extended its rally after United States President Donald Trump said that the US and Iran had reached an agreement to end the war.

“We, however, expect bargain hunting activities to take centre stage as the daily volume surpassed the five billion shares level.

“Thus, we expect the index to maintain its climb and hover within the 1,690-1,710 range today,” he said.

Among heavyweights, Maybank and Public Bank were flat at RM10.92 and RM4.92, respectively. Tenaga Nasional fell two sen to RM14.46, CIMB lost four sen to RM7.65, and IHH Healthcare slid five sen to RM8.64.

Among active stocks, Tanco rose half a sen to 13.5 sen, ACE Market debutant Elsa added three sen to 26 sen, while GIIB was flat at 48 sen. Hong Seng eased half a sen to one sen, and AirAsia X was down one sen to RM1.30.

Among top gainers, Hong Leong Financial increased 12 sen to RM18.54, Hong Leong Bank added 10 sen to RM21.76, IOI Properties rose six sen to RM4.24, while Critical and Powerwell were up five sen to RM1.18 and 89 sen, respectively.

Top losers included Malaysian Pacific Industries and Nestle, which slipped 62 sen each to RM48.38 and RM93.88, respectively. Negri Sembilan Oil Palms lost 18 sen to RM5.24, and UWC and Fraser & Neave decreased 10 sen to RM6.10 and RM27.40, respectively.

On the index board, the FBM Emas Index declined 27.81 points to 12,533.12, while the FBM Top 100 Index weakened 28.58 points to 12,366.13 and the FBM Emas Shariah Index edged down 34.90 points to 12,386.86.

The FBM Mid 70 Index dropped 23.53 points to 18,069.24, while the FBM ACE Index grew 21.79 points to 4,773.66.

By sector, the Financial Services Index shed 7.29 points to 19,984.06, the Plantation Index narrowed 29.32 points to 8,699.69, and the Industrial Products and Services Index erased 0.82 of a point to 188.82, while the Energy Index improved 0.11 of a point to 760.57. — Bernama 

KUALA LUMPUR, June 16 — The ringgit opened higher against the US dollar on expectations that the US Federal Reserve (Fed) will keep interest rates unchanged amid easing inflation concerns and lower US Treasury yields.

At 8am, the local currency strengthened to 4.0455/0550 against the greenback from yesterday’s close of 4.0485/0525.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said crude oil prices continued to decline as expectations grew over a possible peace agreement between the United States and Iran on June 19, which could pave the way for the reopening of the Strait of Hormuz.

He said West Texas Intermediate (WTI) and Brent crude prices fell 4.87 per cent and 4.24 per cent, respectively, to US$80.75 and US$83.63 per barrel, while the 10-year US Treasury yield retreated below 4.50 per cent, signalling easing inflation risk premiums.

“Hence, such a backdrop could influence Federal Open Market Committee members as they deliberate on their interest rate decision on June 16 and 17,” he told Bernama.

Mohd Afzanizam said the ringgit could extend its gains today after closing 0.18 per cent higher on Monday, supported by optimism over a potential US-Iran peace deal, although investors remain cautious ahead of the expected signing of the agreement on June 19.

At the opening, the ringgit strengthened against a basket of major currencies.

It appreciated against the Japanese yen to 2.5245/5306 from 2.5283/5309 at Monday’s close, strengthened against the British pound to 5.4270/4398 from 5.4355/4409, and rose versus the euro to 4.6891/7002 from 4.6987/7033.

Against regional currencies, the local note was mostly higher, except against the Philippine peso, which was little changed at 6.69/6.71 compared with 6.69/6.70 at Monday’s close.

The ringgit improved against the Thai baht to 12.4228/4601 from 12.4294/4474 at yesterday’s close, appreciated against the Indonesian rupiah to 228.4/229.1 from 228.5/228.9, and strengthened versus the Singapore dollar to 3.1534/1611 from 3.1580/1613. — Bernama 

EVIAN-LES-BAINS, June 15 — The Group of Seven wealthy nations will meet on Monday in the French lakeside resort of Evian-les-Bains to discuss wars in Ukraine and Iran, global economic imbalances that threaten financial stability, and the ‌irrepressible rise of AI.

In its 50-year history, the G7 has faced geopolitical catastrophes, from the 1970s oil ​crisis to the global fallout from US President Donald Trump’s military strikes against Iran – as well as questions about its role as multilateralism falters and other countries’ economic and political power grows.

What is the G7?

The G7 is an informal grouping of ‌wealthy nations. It has no permanent secretariat or legal status.

Its members are the US, Britain, Canada, France, Germany, Italy and Japan. The ​European Union attends all summits but does not count as one of the core “7” and does not hold the rotating presidency, as it is not a single nation but a bloc of 27.

Russia was included in what became the G8 in 1997, but was later suspended in 2014 after annexing Crimea from Ukraine.

France took over the presidency from Canada in ​2026.

How long has it been around?

The G7 was founded following the 1973 OPEC oil embargo as a forum for the richest nations to discuss crises affecting the world economy. Its member states have a combined annual GDP of more than $50 trillion – just under half the world economy.

The scope of the G7 was expanded in the 1980s to include political issues.

In recent years it has become customary to invite other nations. This year, the leaders of India, South Korea, Kenya and Brazil are among those invited.

What’s on the agenda at the Evian-Les-Bains summit?

Supporting Ukraine

The G7 will want to ‌show unity in its support for Ukraine, faced with a Russian war now in its fifth year. Ukraine’s President Volodymyr Zelenskiy has proposed face-to-face talks with Russian ⁠President Vladimir Putin to try to end the war. He wants Europeans to ⁠play a more prominent role in the process, worried the US is distracted by the conflict in Iran.

The G7’s ⁠European members want to persuade Trump that Ukraine’s position ⁠has strengthened, Europe is now ⁠shouldering the financial, military and political burden of Ukraine’s war effort and the G7 should agree on how to approach meaningful negotiations with Putin.

Zelenskiy will be in Evian-les-Bains for the discussion on Ukraine.

Iran

The G7 leaders meet shortly after the US and Iran announced they had agreed on a framework to end their war.

The agreement is not ⁠due to be signed until Friday, but G7 leaders will want to know the details of the accord and in particular how quickly the vital Strait of Hormuz can be reopened to shipping traffic. Trump said it would reopen on Friday and that he had ordered the end of the US blockade on Iranian ports.

In the run up to the G7 meeting, France had been keen for an agreement within the G7 and with Middle East partners on the demands that can be made of Iran over its nuclear and ballistic programs.

The leaders of Egypt, Qatar and the United Arab Emirates will join the discussion.

Correcting ⁠global economic imbalances

France summarises the imbalances as: China produces too much, the US consumes too much and the Europeans invest too little.

There is growing alarm in the West at China’s record trade surplus and move up the value chain. Beijing has defended its industrial policies and ⁠rejected allegations of Chinese exporters unfairly benefiting from state subsidies.

Macron has sought to make a last-ditch attempt at a cooperative approach before the EU decides whether to toughen its ⁠trade policy towards ⁠China.

With China absent from the table, no breakthroughs are expected. France says acknowledgment that a problem exists is a win in its own right.

Artificial intelligence

France has invited about a dozen ​senior tech executives including OpenAI’s Sam Altman and Anthropic CEO Dario Amodei to discuss the latest artificial ​intelligence technologies and the possible threats and opportunities they offer.

The protection of children ‌online and digital infrastructure will also be on the agenda, but not the taxation of digital giants.

Debt ​burden of developing nations

The G7 leaders are likely to ​express their resolve in addressing the heavy debt burden faced by many emerging market and developing countries. It is not clear what this commitment will mean in concrete terms. — Reuters

WASHINGTON, June 15 — President Donald Trump today warned that the US will “have no ‌choice” but to apply 100 per cent tariffs on French wine unless Paris eliminates its digital tax on American tech giants.

Trump said he delivered the warning directly to French President Emmanuel Macron, demanding he remove ‌the 3 per cent tax on US tech giants or face duties in the American market.

“I asked him not to charge American companies, and if they do, I have no choice but to charge a 100 per cent tariff on all champagnes and all wines coming out of France,” Trump told the New York Post in an interview. “All (Macron) has to do is get rid of the sales tax, and he wouldn’t have that kind of pressure.”

The White House and Elysee officials did not immediately respond to a request for comment.

French wine and spirits exporters said the latest threat was bad news for an export-dependent ‌industry caught in a dispute beyond its control and urged responsible action to preserve balanced ⁠French-US trade.

Trump had threatened a 200 per cent tariff ⁠on wine and other alcoholic beverages imported from France and ⁠the EU before, including in January ⁠this year and last ⁠year in March as transatlantic trade tensions escalated.

Trump is due to arrive in France’s Evian-les-Bains for a gathering of the Group of Seven wealthy nations, at a time when global ⁠leaders are increasingly wary of the United States.

He will be greeted by Macron, for whom this summit serves as a diplomatic capstone for his second and final term in office, which draws to a close next year.

Alcohol is among the EU’s top exports to the US, worth about €9 billion in 2024, according to Eurostat data, ⁠with certain products like Remy Martin cognac and champagne required to be produced in specific European regions.

Wines and spirits exported to the US from the EU currently face ⁠a 15 per cent tariff — a rate the French have been lobbying hard to reduce to zero ⁠since Trump ⁠and European Commission President Ursula von der Leyen agreed a US-EU trade deal in Scotland last summer.

France has applied a 3 per cent levy since 2019 on revenue from digital services earned in France by ‌companies with revenues of more than €25 million (RM117 million) there and €750 million worldwide. — Reuters

KUALA LUMPUR, June 15 — The ringgit closed higher against the US dollar today as risk sentiment improved on news that the United States and Iran will sign a peace deal on Friday.

At 6 pm, the local note rose to 4.0485/0525 against the greenback from Friday’s close of 4.0555/0600.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the looming peace agreement between the US and Iran had improved market sentiment and supported the ringgit.

“Positive developments in West Asia, particularly the growing momentum in peace talks between the US and Iran, have boosted market sentiment, with both countries expected to sign a memorandum of understanding (MOU) on a peace deal on June 19.

“The deal would pave the way for the reopening of the Strait of Hormuz, allowing the flow of crude oil, liquefied natural gas (LNG), and other commodities such as aluminium and urea,” he noted. 

Mohd Afzanizam said that the anticipation of a restoration in oil supplies had improved risk appetite among traders and investors. “To some degree, this could lead to moderate inflation where the global central banks would not resort to further monetary tightening,” he added. 

At the close, the ringgit was mostly higher against a basket of major currencies.

It appreciated against the Japanese yen to 2.5283/5309 from 2.5334/5364 at Friday’s close and strengthened versus the British pound to 5.4355/4409 from 5.4429/4489.  However, it slipped against the euro to 4.6987/7033 from 4.6979/7031.

Against regional currencies, the local note was mostly lower.

It weakened against the Thai baht to 12.4294/4474 from 12.4105/4288 at Friday’s close and depreciated versus the Indonesian rupiah to 228.5/228.9 from 227.0/227.4.

The ringgit also eased against the Philippine peso to 6.69/6.70 from 6.67/6.68. However, it climbed against the Singapore dollar to 3.1580/1613 from 3.1602/1640. — Bernama

KUALA LUMPUR, June 15 — Bursa Malaysia’s key index advanced at today’s close, tracking gains across regional equities as geopolitical risk sentiment improved following an interim agreement between the United States and Iran to reopen the Strait of Hormuz, said analysts.

At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 7.76 points, or 0.46 per cent, to 1,691.39 compared with last Friday’s close of 1,683.63.

The key index opened 6.76 points higher at 1,690.39 earlier today and moved between 1,688.04 and 1,697.48 throughout the session.

Market breadth was positive, with gainers outpacing losers 789 to 483, while 467 counters were unchanged, 1,034 untraded and 36 suspended.

Turnover surged to 5.02 billion units worth RM3.91 billion from 2.79 billion units worth RM2.31 billion last Friday.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the US-Iran agreement has reduced near-term concerns over energy supply disruptions and lowered geopolitical risk premiums across global asset markets.

“Although the path towards a comprehensive settlement remains uncertain, the de-escalation has provided a constructive backdrop for risk assets, supporting investor sentiment across emerging markets, including Malaysia,” he told Bernama.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said investors are advised to remain cautious as the peace agreement has yet to be formally signed and geopolitical risks have not been fully eliminated.

That said, easing crude oil prices and improving risk appetite across regional markets should lend support to the local bourse.

“Looking ahead, we maintain a cautiously optimistic view on the market, although investors are likely to remain selective amid lingering geopolitical uncertainties and concerns over the global economic outlook.

“As such, we expect the FBM KLCI to trend within the 1,680-1,700 range for the week,” he added.

Among the heavyweight counters, Maybank rose 20 sen to RM10.92, Public Bank added nine sen to RM4.92, Tenaga Nasional gained six sen to RM14.48, and CIMB jumped 30 sen to RM7.69, while IHH Healthcare fell nine sen to RM8.69. 

Among the active stocks, Hong Seng put on half a sen to 1.5 sen, ACE Market debutant Pentech perked up six sen to 26 sen and Dagang NeXchange climbed four sen to 40.0 sen, Tanco lost seven sen to 13.0 sen, and Zetrix AI was flat at 81.0 sen.

Of the top gainers, Malaysian Pacific Industries added RM1.50 to RM49.00, Fraser & Neave increased 76 sen to RM27.50, UMS soared 68 sen to RM8.70, UWC jumped 60 sen to RM6.20, and Pentamaster rose 52 sen to RM4.83.

Among the top losers, Nestle slipped RM1.10 to RM94.50, Paragon dipped 98 sen to RM2.29, Petronas Chemicals shed 82 sen to RM4.52, and Press Metal slid 57 sen to RM8.40, while Dutch Lady shed 24 sen to RM32.80.

On the index board, the FBM Emas Index increased by 86.31 points to 12,560.93, the FBM Top 100 Index advanced 78.77 points to 12,394.71, the FBM Mid 70 Index jumped 208.63 points to 18,092.78, and the FBM ACE Index surged 83.20 points to 4,751.87.

The FBM Emas Shariah Index fell 0.53 of a point to 12,421.77.

By sector, the Financial Services Index leapt 347.0 points to 19,991.36, the Industrial Products and Services Index erased 7.29 points to 189.64, the Energy Index eased 14.91 points to 760.46, and the Plantation Index shed 23.06 points to 8,729.02.

The Main Market volume improved to 2.93 billion units valued at RM3.45 billion from 1.45 billion units valued at RM2.02 billion last Friday.

Warrants turnover swelled to 1.36 billion units valued at RM187.84 million from 888.91 million units valued at RM129.37 million previously.

The ACE Market volume expanded to 727.70 million units worth RM273.33 million from 447.1 million units worth RM160.05 million on Friday.

Consumer products and services counters accounted for 335.70 million shares traded on the Main Market, industrial products and services (443.93 million), construction (184.78 million), technology (949.16 million), financial services (71.27 million), property (457.17 million), plantation (33.55 million), real estate investment trusts (24.53 million), closed-end fund (521,200), energy (118.98 million), healthcare (165.30 million), telecommunications and media (71.51 million), transportation and logistics (32.92 million), utilities (43.10 million), and business trusts (235,700). — Bernama

PARIS, June 15 — European Central Bank President Christine Lagarde said today that she would remain in place to ensure inflation stays in check despite the war in the Middle East, months after a report that she would step down.

“I have a sense of duty and I believe that when there’s a bit of a storm, the captain remains on deck. So the captain of the European Central Bank is on deck,” Lagarde told France Culture radio.

The Financial Times said in February, citing an anonymous source, that Lagarde would leave before October 2027.

That would give French President Emmanuel Macron and German Chancellor Friedrich Merz time to line up a successor ahead of France’s presidential vote in April 2027, in case of a victory by the euro-sceptic far-right National Rally.

Lagarde had declined to comment directly on the report.

“What I could have considered last February was in a particular situation” where inflation was near the bank’s benchmark rate of two per cent and “the digital euro was on track” to getting legislative approval, Lagarde said today.

“So I could say to myself with a degree of confidence that the mission was accomplished, that I was 70 years old and in the end, I could perhaps retire a bit earlier than planned,” she said.

But the ECB last week raised its deposit rate to 2.25 per cent to curtail rising inflation sparked by the US and Israeli war against Iran, which sent oil and gas prices soaring.

“My duty is to accomplish the mission, price stability, and for the moment that is what guides my action,” she said, adding that she wanted to “hand over the keys to an ECB that will have guaranteed” that stability. — AFP

KUALA LUMPUR, June 15 — Foreign investors extended a two-week net selling streak across the eight markets in Asia, with net foreign outflows totalling US$13.61 billion (RM55.1 billion), according to MBSB Investment Bank Bhd (MBSB IB).

The only Asian market to see net foreign inflows was the Philippines, with outflows led by Taiwan, South Korea, India, Indonesia, Malaysia, Vietnam, and Thailand, the investment bank said in its weekly fund flow report for the week ended June 12, 2026.

MBSB IB said the Philippines ended a three-week consecutive week of net selling, with net foreign inflows totalling US$1.9 million, supported by improving labour market conditions, as the unemployment rate declined to 4.7 per cent in April 2026 from 5.0 per cent in March 2026, marking its lowest level in four months.

It said that in Taiwan, foreigners recorded two weeks of net selling, recording outflows of US$8.50 billion, the largest in the region, despite continued strength in external demand, with its exports surging 51.7 per cent year-on-year to US$78.5 billion in May 2026 (Apr 2026: 39.0 per cent), significantly exceeding market expectations of 37.9 per cent.

In South Korea, foreign investors extended to a nine-week net selling streak, recording outflows of US$2.37 billion, despite a stronger-than-expected economic rebound, with its gross domestic product expanding 1.8 per cent quarter-on-quarter in the first quarter (1Q) of 2026  (4Q 2025: -0.1 per cent), surpassing the preliminary estimate of  1.7 per cent, it said.

Meanwhile, on Bursa Malaysia, foreign institutions extended their net selling to a fifth consecutive week, recording RM658.3 million net outflows, with selling activity persisting across all five trading days last week, it said.

The investment bank said the largest outflow was recorded on Tuesday (RM230.2 million), followed by Monday (RM177.4 million), Wednesday (RM133.9 million), Friday (RM78.4 million), and Thursday (RM38.3 million).

“The top three sectors that recorded net inflows by foreign institutions were technology (RM132.3 million), plantation (RM41.4 million), and transportation and logistics (RM36.7 million).

“Meanwhile, the top three sectors that recorded net outflows by foreign institutions were financial services (RM479.1 million), consumer products and services (RM112.8 million) and healthcare (RM62.4 million),” it said.

MBSB IB said that local institutions extended their net buying streak to nine weeks, recording net inflows of RM459.1 million, while retailers also remained net buyers for a fifth straight week, with inflows of RM199.1 million.

It added that average daily trading volume declined broadly across all investor segments, falling 23.0 per cent for retailers, 20.5 per cent for local institutions, and 37.4 per cent for foreign institutions. — Bernama

KUALA LUMPUR, June 15 —Bursa Malaysia opened higher today, tracking overnight gains on Wall Street as investors returned to technology stocks, which continue to benefit from the ongoing artificial intelligence (AI) supercycle.

At 9.10am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) rose 7.50 points to 1,691.13 from last week’s close of 1,683.63.

The key index had opened 6.76 points up at 1,690.39.

Market breadth was positive, with gainers leading losers 349 to 160. A total of 273 counters were unchanged, 1,915 untraded and 36 suspended.

Turnover stood at 539.66 million shares worth RM217.18 million.

Malacca Securities Sdn Bhd said in a note it expected the rebound in the technology sector and continued to favour semiconductor companies as they remain among the biggest beneficiaries of the AI supercycle.

“We believe overall investor risk appetite should remain highly elevated as Elon Musk’s SpaceX initial public offering makes its historic debut on Wall Street, closing at a US$2.1 trillion valuation on its first day of trading,” it said.

Among heavyweights, Maybank and CIMB rose 16 sen to RM10.88 and RM7.55 respectively. Public Bank added four sen to RM4.87, Tenaga Nasional increased 10 sen to RM14.52 and IHH Healthcare was up three sen to RM8.81.

Among active stocks, Hong Seng Consolidated was flat at one sen, Tanco was down five sen to 15 sen and Top Glove slid one sen to 79.5 sen. ACE Market debutant Pentech gained five sen to 25 sen, while AirAsia X was six sen firmer at RM1.26.

Among top gainers, Malaysian Pacific Industries rose RM1.28 to RM48.78, Nestle increased RM1.20 to RM96.80, Batu Kawan added 50 sen to RM20.80, Vitrox inched up 23 sen to RM7.47 and Sunway Construction accumulated 17 sen to RM7.22. 

Among top losers, Paragon fell 98 sen to RM2.29, Petronas Chemicals slid 47 sen to RM4.87,Ralco decreased 29 sen to 69 sen, Concrete Engineering lost 20 sen to RM4.00 and United Plantations was down 18 sen to RM31.32. 

On the index board, the FBM Emas Index gained 63.95 points to 12,538.57, while the FBM Top 100 Index perked 61.56 points to 12,377.50 and the FBM Emas Shariah Index edged up 31.92 points to 12,454.22.

The FBM Mid 70 Index jumped 118.27 points to 18,002.42, while the FBM ACE Index accumulated 43.79 points to 4,712.46.

By sector, the Financial Services Index surged 186.34 points to 19,830.70 and the Plantation Index expanded 15.95 points to 8,768.03, while the Industrial Products and Services Index shed 2.85 points to 194.08 and the Energy Index declined 9.41 points to 765.96. — Bernama

KUALA LUMPUR, June 15 — The ringgit extended its upward momentum, opening firmer today against the US dollar and other major currencies, supported by improved risk sentiment following signs of easing geopolitical tensions.

At 8am, the local note rose to 4.0430/0500 against the greenback from last Friday’s close of 4.0555/0600.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said news on the likely reopening of the Strait of Hormuz following the agreement between the United States and Iran on a peace deal to be signed on June 19 has boosted market sentiment.

“WTI and Brent crude oil prices have already fallen by more than four per cent, with Brent crude currently trading at US$83.83 per barrel.

“My sense is that the ringgit is moving towards the RM4.00 level against the US dollar. It may not happen immediately, but a sub-RM4.00 level would be consistent with the ringgit’s fair value given the prevailing macroeconomic conditions and the resilience of Malaysia’s economic growth,” he told Bernama.

At the opening, the local currency strengthened against a basket of major currencies. 

It appreciated versus the Japanese yen to 2.5275/5320 from 2.5334/5364 at last Friday’s close, climbed against the British pound to  5.4374/4468 from 5.4429/4489 and improved vis-a-vis the euro to 4.6911/6992 from 4.6979/7031 previously.

The ringgit was also better against regional peers.

It gained versus the Singapore dollar to 3.1554/1611 from 3.1602/1640 last Friday and jumped against the Thai baht at 12.4015/4298 compared to 12.4105/4288 previously.

It also recovered vis-a-vis the Indonesian rupiah to 226.3/226.8 from 227.0/227.4 and was up versus the Philippine peso to 6.65/6.66 from 6.67/6.68 previously. — Bernama

JAKARTA, June 15 — Indonesia’s economy faces a perfect storm wrought by high energy prices and, while the currency has rebounded slightly, critics warn government policies are unnerving investors at a critical moment.

South-east Asia’s biggest economy, a net oil importer, was hit hard by the global surge in crude prices fuelled by the Middle East war.

To shield its citizens, the government has insisted on maintaining a costly fuel subsidy and a multi-billion-dollar school meal programme criticised as wasteful and blamed for mass food poisoning.

At a time when Indonesia desperately needs foreign currency, authorities spooked investors with tighter export controls lambasted as “resource nationalism”, while a move by parliament to tighten oversight of the central bank raised fears over its independence.

The rupiah has plummeted, hitting successive record lows and dropping below 18,100 against the US dollar this week.

The stock market has lost about a third of its value since the start of the year – one of the worst performances globally – as traders increasingly “sell Indonesia”.

This week, there was some reprieve as the currency and markets reacted positively to the central bank raising its base lending rate by 75 basis points in back-to-back hikes.

However, “investor concerns over recent domestic policy moves will persist”, according to an analysis by BMI, a unit of Fitch Solutions.

It noted that the rupiah remained about seven per cent weaker than at the start of the war in February.

“Given that investor concern over domestic policy has not been resolved, we expect depreciatory pressure on the rupiah to persist,” BMI said.

This, in turn, would force Bank Indonesia “to hike rates further”, it added.

‘Populist and interventionist’

High lending rates tend to dampen economic growth.

President Prabowo Subianto’s government is pursuing a growth target of eight per cent by 2029 as one of its major policy objectives – an ambitious goal some experts warn will be difficult to achieve.

Deputy Finance Minister Juda Agung told AFP this week the government would not abandon its target despite the high social spending that underpins it.

“We have to grow higher to become a rich country by 2045,” he said in an interview.

“Otherwise we are... going to be trapped in the middle-income countries group.”

Juda, a former central bank deputy governor, said the government supported the recent interest rate hikes despite the potential risk to growth as well as higher debt-servicing costs for the state.

“This is the area of the central bank. They are independent. They know what they should do,” he said.

Interest rate hikes alone may not be enough to prop up the rupiah, experts say.

“Placing the currency on a firmer footing requires... the Prabowo administration to shift away from its populist and interventionist policy agenda,” Capital Economics said in a note this week.

“Ultimately what’s needed is a clear shift... towards more investor-friendly policymaking.”

Rebuilding trust

Juda insisted the rupiah was undervalued and that economic pressures were “manageable” and would abate once the war ends.

“Our economy is quite resilient,” he said.

Economists expect further interest rate hikes, potentially creating additional pressure on the government’s budget deficit, which by law must be kept below three per cent of gross domestic product (GDP).

Adding to the uncertainty, Jakarta is awaiting a decision by MSCI on its market-risk status after the group expressed concerns about the transparency of stock ownership.

A downgrade could trigger further capital flight.

According to Juda, there have been “big inflows on the government bond” since the interest rate increase, as well as “signs of confidence in the stock market”.

The World Bank said on Thursday that Indonesia would likely record growth of no more than 5.0 per cent under the strain of high public spending — below the government’s target of 5.4 per cent.

Official data showed the economy grew 5.6 per cent in the first quarter of 2026, although analysts have expressed doubts about the reliability of the figures.

Deni Friawan, a researcher at the Centre for Strategic and International Studies in Jakarta, said the government should cut spending to demonstrate its commitment to keeping the fiscal deficit under control.

“Trust is earned by performance, by reputation, by action, not just with words,” he told AFP. — AFP

SAN FRANCISCO, June 15 — If not for the intense rivalry between Anthropic and OpenAI, the generative AI boom might not have arrived so ‌quickly.

In late 2022, OpenAI caught wind that Anthropic was working on an AI-powered chatbot. OpenAI CEO Sam Altman immediately directed employees to fast-track a competing product, four people familiar with the matter said. Two weeks later, the company released ChatGPT, sparking a technological revolution that promises to overhaul the global economy and the way humans interact.

The same urgency now extends to plans for their blockbuster IPOs.

The companies are racing to beat one another to market, viewing a first listing as a way to frame how investors will value the companies and establish their CEO as the leading voice of AI. As recently as May, many advisers expected OpenAI would ‌be first to take the initial steps to go public. OpenAI has told some investors it was targeting an IPO as early as September, two people familiar with the matter said. But Anthropic jumped in first, announcing on June 1 it had made a confidential filing with US regulators. OpenAI followed on Monday, a week later.

The stakes extend beyond the clash between Altman and Anthropic CEO Dario Amodei, a former researcher at OpenAI, where he was one of the people responsible for the core technology that made ChatGPT possible. The competition is spilling into Wall Street. It’s rare for two such big direct rivals to raise capital at the same time, and the IPOs will be so big that they are by necessity turning to some of the same banks for help. OpenAI is looking to go public at a valuation around US$1 trillion (RM4.06 trillion), Reuters previously reported.

Bankers and other advisers are navigating increasingly complex relationships with both OpenAI and Anthropic, three people familiar with the matter said. Executives at both companies have pressed their IPO advisers for insight into the rival’s plans, the people said, prompting some banks working with both companies to erect internal barriers between deal teams to prevent information leaks.

‘All-out war’

Top bosses often clash. Elon Musk and Jeff Bezos have traded public barbs as part of their space race, and Bill Gates and Steve Jobs quarrelled over whether Microsoft products had copied from Apple.

The tension between Altman and Amodei is the driving force in today’s biggest technological revolution — influencing how quickly AI tools are released, what features they include and, ultimately, how people interact with the technology in their daily lives.

“It’s all-out war between these guys,” said Anastasios Angelopoulos, CEO of Arena, a top AI benchmarking and evaluation company. “Every time there’s a new release from Anthropic, the bet will be that OpenAI is soon to follow and vice versa.”

Both companies declined to comment on the CEO rivalry.

Fight over revenue recognition

The companies are also at odds over how each tells its financial ‌story to investors. OpenAI has told investors and employees that Anthropic’s preferred accounting method overstates its revenue by billions of dollars, according to two people familiar with the matter. In April, OpenAI’s chief revenue officer Denise Dresser told employees that OpenAI considers Anthropic’s financials inflated, according to a company ⁠memo reviewed by Reuters.

That’s because Anthropic books the full amount that customers pay for its AI services as revenue, but part of that sum ⁠is later routed to partners such as Amazon and Google. OpenAI uses a different method, reporting only net revenue after paying its partner, Microsoft.

Anthropic told Reuters that it follows established accounting practices and ⁠recognises gross revenue because it is the “principal” in the transaction while its cloud ⁠partners are distribution channels.

Dresser’s internal communications aimed to reassure OpenAI staffers who ⁠have been demoralised by Anthropic’s rapid growth, two of the people Reuters spoke to said.

One reason for “Anthropic to try to beat OpenAI out to the public market is that they will get to set the agenda for how a frontier model reports financials and do so in a way that is favourable to their financial model,” said Gil Luria, analyst at D. A. Davidson.

The desire to best its rival has, at times, led to tensions within OpenAI. Altman recently clashed with Chief Financial Officer Sarah Friar over whether the company could meet the obligations required for a public listing on ⁠such a compressed timeline, three people familiar with the matter said. Altman told her to figure it out or hire different bankers and lawyers who could pull it off, they said.

Friar has since told advisers that the company’s leadership is aligned on timing, another person said.

In an interview on CNBC after Anthropic’s filing, Altman said he didn’t want to rush OpenAI’s debut.

A long-running feud

The rivalry dates back to late 2020, when Amodei left his job as OpenAI’s vice president of research with several others to create Anthropic, which promised to prioritise safety. The move was seen by many OpenAI employees as a rebuke of Altman’s approach. In early 2022, Anthropic trained the first version of its chatbot Claude, but held it back from public deployment to conduct safety research instead, Anthropic later said.

OpenAI had similar projects underway. Some employees were working on a “super-assistant” tool powered by OpenAI’s then-advanced models, four people familiar with the matter said. Meanwhile, co-founder John Schulman was separately working on a chat interface. Schulman didn’t respond to a request for comment.

At one point, OpenAI officials considered launching the chat-based assistant tool in March 2023, alongside the release of ⁠its GPT-4 large language model, the four people said.

But rumours of Anthropic’s project in mid-November galvanised Altman. He directed OpenAI staffers to develop a chatbot that could be ready as quickly as possible. “All of a sudden, it was like, we got to ship this in two weeks,” one of the people said.

The product, ChatGPT, was released on November 30, 2022. It quickly became the fastest-growing consumer application in history, drawing millions of users and upending tech giants’ previous product roadmaps. Anthropic, ⁠which launched its Claude chatbot a few months later, spent about three years catching up to OpenAI. Around late 2024, Amodei redirected researchers to focus on so-called reasoning models after seeing OpenAI’s early success there, three people familiar with the matter said. The dynamic flipped in late 2025 when ⁠Anthropic, which long focused on business customers, released ⁠a powerful update to its Claude Code tool. OpenAI, which generates much of its revenue from consumers paying for ChatGPT, has now redoubled its focus on enterprise software and pulled more resources into its own coding product, Codex.

Open distaste

Relations between the two companies deteriorated after Altman was unexpectedly fired by OpenAI’s board in late 2023. As the board cast about for options, directors briefly spoke with Amodei about merging the two labs under his leadership. In a recent deposition, one former OpenAI executive said the idea was considered “extremely briefly” before the board moved on to other ideas.

Even so, news of the proposal infuriated many OpenAI employees, three people familiar with ‌the events said. Altman was reinstated within days, but that anger persisted. The feud is becoming increasingly public. In February, Altman slammed Anthropic’s Super Bowl ads as “deceptive” for misrepresenting OpenAI’s plans to sell ads on ChatGPT. In March, Amodei accused Altman of leveraging Anthropic’s dispute with the Pentagon to help OpenAI. At an AI summit in India in February, Prime Minister Narendra Modi encouraged all the tech executives on stage to join hands in a show of unity. In a moment captured in a viral video from the summit, Altman and Amodei, standing next to one another, refused. — Reuters

WASHINGTON, June 14 — US Federal Reserve chief Kevin Warsh will chair his first meeting of the central bank’s rate-setting committee next week caught between a rock and a hard place.

Inflation is at a three-year high but Warsh still faces unrelenting pressure from the White House to lower interest rates.

The bank’s 12-member Federal Open Market Committee (FOMC) will begin a two-day meeting on Tuesday and is widely expected to hold rates steady as the effects of US President Donald Trump’s war on Iran course through the world’s largest economy.

Warsh, who was picked by Trump, was sworn in last month and has an ambitious and wide-ranging reform agenda.

He has previously expressed support for lowering rates – in line with Trump’s demands – but will likely face resistance from a divided committee.

At the FOMC’s last meeting in April, the Fed held rates steady at 3.50 to 3.75 per cent, but the decision saw four voices of dissent – the largest number since 1992.

Analysts expect the FOMC to deliver a similar decision in June, though with debate expected on whether to change the Fed’s guidance on what its next move could be – a rate hike or a cut.

“He was appointed as Trump’s pick, because Trump probably was influencing him to cut rates,” Dan North, senior economist at Allianz Trade, told AFP.

“I don’t see him being able to do that now, especially with inflation data and job growth data, and what the people on the FOMC said last time around with their dissents.”

‘Family fight’

The Fed has a dual mandate to keep inflation to its long-term two-percent target while ensuring maximum employment.

It typically achieves these goals through interest-rate decisions – cutting borrowing costs to spur economic activity or raising them to cool prices.

Before the US-Israel war on Iran sent energy prices skyrocketing, markets had priced in at least one rate cut by the end of 2026.

With inflation flaring due to the war, however, the next move is now forecast to be a rate hike by December, according to CME’s FedWatch tool.

That will be sure to anger Trump, who has launched an unprecedented assault on the Fed’s independence with a criminal probe against Warsh’s predecessor and attempting to fire another Fed governor.

Last week, responding to strong US job growth figures that suggested the Fed should focus on inflation, Trump said he still wanted lower rates but would let Warsh “make that decision.”

The FOMC decides by majority vote, and even if Warsh argues for a cut, he must convince at least six other policymakers to join him.

At his confirmation hearing, Warsh said he favoured “messier meetings,” where policymakers could have “a good family fight.”

“He’s stepping into an environment that’s already messy,” warned North of Allianz Trade. “I don’t think it’s the family fight he was talking about.”

‘Nothing can wish it away’

Greg Daco, chief economist at EY-Parthenon, told AFP Warsh was unlikely to try to make wholesale changes at the meeting – his first chance to sit with the entire committee and “share his perspective on the economic landscape.”

Warsh has proposed reducing the amount of information the Fed communicates about its decisions: cutting out forward guidance and projections.

“In this first meeting, my guess is that he will withhold his projection, but not necessarily change the way projections are published,” said Daco.

While most analysts expect rates to be held steady at this meeting, opinions vary wildly on what the Fed’s next move could be – whether war-fuelled inflation will need to be addressed, or if it can be treated as temporary.

“Delaying rate hikes is riskier today than it was as the economy emerged from the pandemic,” warned Diane Swonk, chief economist at KPMG.

“The persistence of inflation is the hand that Warsh has been dealt; nothing can wish it away.”

As for whether Warsh will succumb to Trump’s pressure, “that’s something that’s going to have to be tested,” said EY-Parthenon’s Daco.

“I don’t think we know, to be honest, at this stage.” — AFP

NEW YORK, June 14 — SpaceX roared into markets this past week with a valuation of more than US$2 trillion, surpassing two members of Wall Street’s “Magnificent Seven” and raising a key question: Does the Mag 7 name still fit? ‌And if not, what should replace it?

The IPO, the biggest in US history, vaulted SpaceX’s value above two ​Mag 7 members: CEO Elon Musk’s other company, Tesla, and Meta Platforms. With trillion-dollar contenders such as OpenAI and Anthropic waiting in the IPO wings, the club may soon need a name change, analysts said.

With SpaceX’s arrival, “it becomes very hard to keep using Mag 7 as the clean shorthand ​for market leadership because one of the most important companies in the world would immediately be outside the label,” said Shay Boloor, chief market strategist at Futurum Equities.

These groupings are not formal market categories, but shorthand labels coined by strategists, investors and the media to capture the hottest big stocks at a given moment. Such monikers have a long history, ranging from the “Nifty 50” of the 1960s and 1970s to the “Four Horsemen” of the late 1990s dot-com boom. The SpaceX IPO has ‌set off a race to devise the next cool acronym.

One sobriquet gaining traction on X is “MANGOS”, which stands for Meta, Anthropic, ⁠Nvidia, Alphabet, OpenAI and SpaceX. That grouping is far from standardised, ⁠with some interpreting the “A” as Apple, currently the third most-valuable US-listed firm.

“We are already referring ⁠to it internally and the industry is picking ⁠up on it as ⁠well,” said Aga Kuplinska, SVP of product development at Tidal Financial Group, which helps asset managers roll out ETFs.

Dan Boardman-Weston, CEO at BRI Wealth Management, is going another way, suggesting “Magna Atoms” – the Magnificent Seven plus SpaceX, OpenAI and Anthropic.

The Magnificent Seven ride

 The “Magnificent Seven” term was ⁠coined by BofA Global Research Chief Investment Strategist Michael Hartnett in late 2023 to describe seven heavyweight technology-related stocks: Nvidia, Apple, Amazon, Alphabet, Meta, Tesla and Microsoft.

With an AI boom driving stock markets to record highs and the sudden appearance of new trillion-dollar companies, the leaderboard is often in a state of flux. In a May 22 note, BofA wrote about the “AI Big 10,” adding Broadcom, Micron Technology and Advanced Micro Devices to the original seven, reflecting the semiconductor rally of the past year. That group ⁠accounts for more than 40% of the S&P 500’s weight, according to LSEG data.

The labels have evolved before – from FANG to FAANG to the Magnificent Seven – each tracking shifts in companies that led the market.

FANG covered Facebook, ⁠Amazon, Netflix and Google. FAANG added Apple, and Magnificent Seven dropped Netflix while adding Microsoft, Nvidia and Tesla, each shift reflecting changes at the ⁠top of ⁠the market.

“It’s been Mag 7 for several years now. Maybe the markets are excited for something new,” said Dustin Thackeray, chief investment officer at Crewe ​Advisors.

To be sure, not everyone expects the old label to ride off into ​the sunset.

“The Magnificent Seven label is not going away,” ‌said Dave Mazza, CEO of Roundhill Investments. “It is too embedded in how investors and the ​media view large-cap tech leadership. What you will ​likely see is additive terminology rather than replacement.” — Reuters

KUALA LUMPUR, June 14 — Malaysian biomass producer Weng Yat Resources Sdn Bhd has signed a deal to build a biomass supply platform for Japan, targeting more than RM60 million in revenue annually once full scale exports begin.

The commercial shipment is expected to commence early next year. 

The company signed a memorandum of understanding (MoU) with Japan-based Daya Synergy Borneo Co Ltd (DSB) in Kuala Lumpur yesterday to strengthen biomass fuel supply chains in support of Japan’s renewable energy and decarbonisation goals. 

“Long-term supply agreements are targeted to be finalised by end of this year, with commercial shipments commencing in January 2027. This is following an initial trial shipment of 10,000 metric tonnes of wood pellets this year,” Weng Yat Resources executive director Sunderaj Nagalingam said at the ceremony on June 11.

The initial shipment will serve as a test run before both parties scale up to a larger recurring supply arrangement on a monthly basis upon successful implementation.

He also said the company is targeting a five per cent share of Japan’s biomass import market over the next three years, adding that even that figure was huge given the size of the market. 

The platform is intended to support Japan’s biomass power generation sector, which relies on imports of biomass fuel including wood pellets, palm kernel shells (PKS) and Empty Fruit Bunch (EFB) pellets as part of its decarbonisation efforts.

Japan’s biomass demand is estimated to include around seven million tonnes of PKS and nine million tonnes of wood pellets annually, with EFB pellets identified as a growing segment driven by feedstock availability and cost factors. 

Under the partnership, DSB will coordinate market access into Japan for Weng Yat Resources, drawing on its existing trade relationships with biomass trading companies and power producers developed through its PKS export activities from Sabah. The company is also involved in energy-related development projects, including a proposed Battery Energy Storage System in Hokkaido with a planned capacity of 100MW and an estimated value of about US$300 million. 

Weng Yat Resources operates biomass production facilities across Malaysia, supplying industrial users and international offtakers. 

Its biomass feedstock strategy includes long-term supply agreements with 24 palm oil mills across Malaysia, targeting an estimated one million metric tonnes of Empty Fruit Bunch annually. 

Sunderaj Nagalingam, Executive Director of Weng Yat Resources Group Berhad, delivering his speech at the Memorandum of Understanding (MoU) signing ceremony held at the Malaysian Petroleum Club, Petronas Twin Towers, Kuala Lumpur. — Picture courtesy of Weng Yat Resources Group Berhad

Sunderaj said the agreement reflects the company’s focus on converting biomass materials into exportable fuel products.

“Work is progressing across our operations, with projects at different stages from construction to equipment installation, while agreements are being finalised. Our focus remains on turning biomass materials that were once discarded into value-added products. This principle continues to define what we do,” he added.

Meanwhile, DSB representative director Hideki Takizawa said the agreement lays the groundwork for longer-term cooperation and market access between Malaysian suppliers and Japanese buyers in the biomass sector.

“Today is not just the signing of an MOU but a memorable first step in a new relationship based on trust, mutual respect, and a shared vision for the future. We firmly believe that DSB can serve as a bridge between Weng Yat Resources and the Japanese market, not only for PKS, wood pellets and EFB pellets, but for many other business opportunities in the future,” he explained.

Established in 2007, Weng Yat Resources is involved in biomass production and other industrial activities including automotive and scaffolding. The company reported a combined turnover of about RM150 million.

Its operations include a Wood Waste Collection Centre contract in the Klang District under the Klang City Council, where collected material is directed into biomass production.

The group operates biomass facilities across Peninsular Malaysia and Sarawak. Its Tronoh, Perak plant produces about 6,000 metric tonnes of wood pellets a month.

Expansion plans include a new EFB pellet line with a capacity of 5,000 metric tonnes per month, expected to be operational by 2027, and a facility in Kapar, Klang, which will add production capacity for wood pellets, sawdust and wood chips upon completion in 2027.

LONDON, June 13 — Omega’s Constellation watch has been flashed in campaigns, movies and at the Met Gala by stars like George Clooney and Nicole Kidman, turning it into a symbol of luxury and glamour.

But with gold prices near record highs struck in January, some such classic watches are being melted down as the value of their metal content outstrips their resale worth.

Used models by the likes of Omega and LVMH’s TAG Heuer are most hit by the trend, according to Reuters interviews with over a dozen traders, industry experts and investment advisers.

British dealer Jon White of Gold Traders melted down an 18-carat late-1970s Constellation in excellent condition in May, one of dozens of mainstream luxury watches he has had scrapped this year as demand for investment gold has risen.

“Beautiful watch. But in reality, had the customer consigned that to auction, what would they have achieved?” White, who also manages an auction house, told Reuters.

The gold content of the Constellation watch, one of many models produced by Swatch-owned Omega, was worth £5,750 (US$7,749; RM34,443), 35 per cent more than its estimated £4,000–£4,500 auction value, White said.

James Lamdin, founder of Watches of Switzerland’s second-hand unit Analog Shift, said melting was “primarily happening with contemporary pre-owned and also with older vintage watches that are not already collectible.”

Spokespersons for Swatch and Rolex said they would not comment for this story. LVMH, Richemont, Patek Philippe and Audemars Piguet did not respond to requests for comment.

Liquid gold

Gold prices surged to a record US$5,600 (RM24,936) an ounce in January as geopolitical concerns and trade worries pushed investors towards safe-haven precious metals. Gold now hovers around US$4,200 (RM18,708) per ounce, almost double its 2024 average.

The market price for used watches has not moved in the same way, however.

“I find it very sad, because obviously once something has been melted, it’s gone forever,” said Adrian Hailwood, a specialist in horological history.

There are no official figures showing how many luxury watches are being melted. World Gold Council data shows overall gold recycling in the first quarter rose 5 per cent to 366 tonnes, while gold jewellery demand rose 31 per cent in value to US$47 billion (RM208.99 billion).

Watches can hold anything from a sliver of gold to more than 200 grams, meaning their scrap value can run into tens of thousands of dollars. In an Omega Constellation, the gold can be found in the case and the strap.

With gold expected to reach between US$5,400 and US$6,300 (RM24,048–RM28,044) an ounce this year, the pressure to dismantle some watches will continue, especially as traders that resell them must cover costs and the expense of providing a warranty.

Adam Hole, managing master smelter, stirs molten gold after placing old luxury watches into a furnace at Hatton Garden Metals in London, Britain on June 10, 2026. — Reuters pic

New watches that are over-produced might also be melted down.

“I’ve seen a lot of totally mediocre watches get melted down,” said Lamdin. 

“There’s a lot of unsold overstock in the Swiss market. And those watches are basically brand new, unworn, and they’re just getting stripped down… they made too many of them.”

“But when you have something that’s vintage and rare and has some story or some patina, that’s where it becomes a short-sighted tragedy.”

The resale trap

High-end brands that tightly manage new production like privately owned Patek Philippe and Rolex command the highest premiums over melt value, three industry experts said.

For some models “the wait lists are astronomical. You’re talking anything from two to eight years,” said Simon Lazarus, head of PR and content at online luxury watch platform Chrono Hunter.

Rolex accounted last year for 61 per cent of the sales value of new Swiss watches priced above 3,000 Swiss francs (US$3,770 / RM16,765), up from 57 per cent in 2023 despite lower volumes, according to Vontobel.

Less exclusive brands like TAG Heuer, Breitling and Omega struggle to command high new retail prices, however, as buyers can buy a second-hand timepiece for much less.

Models like Omega’s Speedmaster often depreciate sharply once sold, exposing them to scrapping, three experts said.

To sell or not to sell

Higher gold prices motivated retired New York engineer Mitchell Talisman to sell two gold watches and a chain containing a combined 35 grams of gold with 58 per cent purity for US$2,660 (RM11,823) cash in December.

“I’d had a bunch of stuff sitting in a safety deposit box for over 10 years,” he told Reuters.

For some owners however, the idea of selling a watch only for it to be melted by a dealer is too much to bear.

“It may be a family piece, it may be their first watch,” said Hailwood.

“They don’t like the idea of it being destroyed, so they keep it.” — Reuters

BEIJING, June 13 (Reuters) — China is “strongly dissatisfied” with a US move to add several large Chinese companies to the Pentagon’s list of firms it says are aiding China’s military, the commerce ministry said on Saturday.

The foreign ministry has also expressed concern about the US Defense Department’s long-awaited update to its list on Monday, which included such top technology names as e-commerce giant Alibaba, internet search provider Baidu and automakers BYD and NIO.

The list also includes the world’s largest solar panel makers: Trina Solar and JA Solar Technology.

The list includes a broad swathe of China’s top technology firms key to advancing Beijing’s military and industrial prowess, reflecting Washington’s security concerns amid intense geopolitical competition between the countries.

“China is strongly dissatisfied and firmly opposes this,” the commerce ministry said in a statement. 

“China urges the US to immediately stop its erroneous practices, immediately withdraw relevant measures and return to the correct track of building a constructive strategic and stable China-US relationship.”

If Chinese firms are not treated fairly, it said, Beijing will “inevitably retaliate resolutely and forcefully”.

The Pentagon update supersedes a list from early 2025 and comes a month after Presidents Donald Trump and Xi Jinping met in Beijing and maintained a delicate trade-war truce.

The ministry statement said the Pentagon’s move “ignored the consensus” reached between the two leaders.

Under US law, the Defense Department will be prohibited from contracting directly with companies on the list and restricted from buying their products or services through third parties from 2027. — Reuters

BENGALURU, June 13 — An Indian pollution regulator has alleged wastewater discharged from a Tata components factory for Apple’s iPhone production has contaminated groundwater for nearby farms and warned of a forced shutdown unless Tata provides a satisfactory explanation.

India’s Tata Electronics is central to Apple’s push to diversify iPhone production beyond China and is the second-biggest supplier to Apple in South Asia after Taiwan’s Foxconn.

The Tata plant under investigation is in Hosur in southern Tamil Nadu state and makes back panels and other components for iPhones. Farmland owners near the plant had complained for months to the Tamil Nadu Pollution Control Board that wastewater from the factory was contaminating their land and open wells.

The complaints led to five state inspections between December 2025 and May 2026, according to details from a previously unreported regulatory notice dated May 25 and reviewed by Reuters.

The inspections found that Tata discharged wastewater into a rainwater harvesting pond inside its facility and that the pond overflowed to contaminate “groundwater in the open wells located in the adjacent agricultural lands”, the pollution board’s warning notice to Tata said.

Tata had not taken any corrective actions on instructions issued by the pollution board in a previous letter dated December 23, 2025, it said in the three-page notice.

Tata Electronics told Reuters in a statement it had commissioned an independent analysis through an accredited laboratory and that the study determined the company was “in full compliance with all regulatory norms”.

Tata said it was “committed to responsible business practices and protection of the environment and local communities”, and that it had responded to pollution authorities, although giving no further details.

The pollution board in its May notice asked Tata to explain why power to the unit should not be cut and the unit closed for its alleged breach of the rules.

Apple, which has strict rules on how its suppliers handle wastewater, and the Tamil Nadu government did not respond to requests for comment from Reuters.

Apple’s struggles in India

Companies have often faced disciplinary action from pollution authorities in India. In 2024, Mercedes-Benz improved wastewater and air pollution management at its only car factory in India after officials detected lapses in compliance with environmental law.

India’s environment ministry told parliament in February that 4.4 per cent of 544,364 industries were found non-compliant with environmental standards in the last five years, and 3,600 were shut down by pollution control departments.

The Tata notice adds to a series of issues that have dogged Apple’s India supply chain. A fire at Tata’s Hosur plant in September 2024 halted iPhone component production briefly, while a fire in September 2023 at former supplier Pegatron’s iPhone plant shut production for days.

In 2024, a Reuters investigation found that major Apple supplier Foxconn systematically excluded married women from iPhone assembly jobs at one of its plants in India, although the company said at the time that it complied with all laws.

India is projected to make 26 per cent of all iPhones globally in 2026, from just 6 per cent four years ago, according to research firm Counterpoint. — Reuters

PARIS June 13 — As SpaceX completed the biggest initial public offering in history, controversial entrepreneur Elon Musk saw his wealth blow past the symbolic – and unprecedented – level of a trillion dollars.

Following strong demand for shares in the space technology as part of the IPO, they jumped more than 20 per cent when they began trading on the Nasdaq Friday.

That lifted the estimated wealth of the South Africa-born Musk, 54, to above US$1 trillion (RM4.05 trillion) , according to Bloomberg and CNBC.

That takes him into an uncharted zone of the mega-wealth stratosphere, leaving Google co-founders Larry Page and Sergey Brin, as well as Amazon creator Jeff Bezos trailing in his wake, according to data from Forbes and Bloomberg.

But what could a discerning unfathomably rich investor actually do with a cool trillion at his disposal?

That’s around the wealth produced over a year by entire countries, such as Switzerland or Poland (US$1,040 billion GDP in 2025, according to the International Monetary Fund).

Or, if you prefer, see it in terms of totalling three times the current value of France’s gold reserves.

Yet Musk’s wealth is considerably different to that afforded by precious metal, a tangible asset with safe-haven status owing to its reputation for stability.

Musk’s wealth mostly derives from his stock portfolio, the value of which fluctuates and can be decidedly volatile.

“If Elon Musk wanted to sell off a huge chunk of his shares to buy real estate or whatever, the stock price would drop hugely,” warned Alexandre Baradez, head of market analysis for investment company IG France.

That would mechanically see his total wealth follow the same trend.

“There’s the law of supply and demand,” Baradez said.

“But there’s also, and maybe even more importantly, the psychological effect: a massive sale of Elon Musk’s shares, given the strong influence he has on his companies’ strategies, would send a very strong signal to the market.”

Other investors would likely follow suit, which would further decrease the stock’s value, and ultimately, the fortune of a man who would revert from being a trillionaire to merely a multi-multi-billionaire. — AFP

KUALA LUMPUR, June 13 — The ringgit is expected to be traded cautiously next week, ahead of the June 16–17 Federal Open Market Committee meeting.

Markets are expected to scrutinise the United States Federal Reserve’s statements and projections for the federal funds rate for the year.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that it will be interesting to look at the latest Fed assessment, given the US headline inflation rate was at a three-year high at 4.2 per cent in May.

He said another key focus, which will be closely monitored, is the global central banks’ reaction towards the current oil price shocks.

“Bank of Japan will be deciding their policy rate on June 16, with consensus expecting a 25-basis-point hike to one per cent.

“Reserve Bank of Australia (RBA) will also reconvene to decide their cash rate, but markets are anticipating no change in the benchmark interest rate, which currently stands at 4.35 per cent,” he said.

Meanwhile, SPI Asset Management managing partner Stephen Innes said the big swing factor for next week’s market movement will be updates around the US-Iran peace deal.

“If there is a credible deal, the US dollar could weaken by around three to five per cent over the course of the month. That would be a meaningful tailwind for regional currencies, including the ringgit,” he added.

On a Friday-to-Friday basis, the ringgit eased to 4.0555/0600 against the US dollar from 4.0280/0320 a week earlier.

The local currency traded lower against a basket of major currencies during the week.

It depreciated against the British pound to 5.4429/4489 from 5.4233/4287, eased versus the Japanese yen to 2.5334/5364 from 2.5183/5209, and weakened against the euro to 4.6979/7031 from 4.6882/6928 previously.

It also traded lower against Asean currencies.

It slid against the Indonesian rupiah to 227.0/227.4 from 223.3/223.6, eased vis-à-vis the Singapore dollar to 3.1602/1640 from 3.1390/1424, slipped against the Thai baht to 12.4105/4288 from 12.3433/3605, and declined against the Philippine peso to 6.67/6.68 from 6.55/6.56. — Bernama