Market Review Economics US: Trump nominates US Fed governor Bowman as vice-chair for supervision Market Review Economics US: Trump nominates US Fed governor Bowman as vice-chair for supervision US President Donald Trump nominated Federal Reserve governor Michelle Bowman to the central bank's top regulatory post as vice-chair for supervision where she is expected to oversee an agenda of relaxed rule-writing and bank oversight. A former community banker and frequent critic of overzealous bank regulation, Bowman would replace Michael Barr, who stepped down from the supervision post at the end of February to avert a potential legal dispute with the Trump administration. "Our economy has been mismanaged for the past four years, and it is time for a change. Miki has the 'know-how' to get it done. I am confident we will achieve economic heights never before seen in our nation's history," Trump, who took office on January 20, wrote on social media. (Reuters) US: Trump says he's authorising administration to produce coal power US President Donald Trump said he would look to counter China's economic advantage from coal-based electricity by authorising his administration to ramp up production of energy from the fossil fuel. "I am authorizing my Administration to immediately begin producing Energy with BEAUTIFUL, CLEAN COAL," Trump wrote in a social media post. It's not clear what Trump was referring to, or how his social media decree would impact actual US policy. Trump already signed an executive order earlier in his term declaring a national energy emergency and directed the Environmental Protection Agency to boost fossil fuel production and distribution. (Bloomberg) US: Bessent sees no reason for recession, economic data 'healthy' Treasury Secretary Scott Bessent said that the underlying economy is healthy and there's no reason for the US to see a recession, while rejecting the idea of assuring there cannot be a downturn. "I can't guarantee anything," Bessent said in an interview Tuesday with Fox Business ' Maria Bartiromo, dismissing any question about assuring there won't be one as "silly." Economists have warned there's rising risk of an economic downturn thanks in part to uncertainty over President Donald Trump's tariff hikes, and to worries over their impact once the levies are decided on and implemented. "What I can guarantee you is there is no reason we need to have a recession," Bessent said. "We're seeing some very good underlying data," he said, pointing to figures from credit cards and banks. (Bloomberg) UK: To cut welfare payments in bid to address spiralling costs Britain's Labour government will announce plans on Tuesday to cut the amount spent on supporting people with disabilities and long-term health conditions, seeking to tame a sharply rising welfare bill despite unrest among some of the party's lawmakers. The cuts are a prelude to a March 26 fiscal statement which is set to be the moment when pre-election promises to limit tax rises and tightly control borrowing meet the reality of lower-than-expected growth and tax revenues. Ministers are pulling every lever they can to boost growth and reduce spending, seeking to stay on track to meet a self-imposed fiscal constraint of balancing day- to-day public spending with tax revenues by the end of the decade. (Bloomberg) China: Halts US LNG imports as trade war reroutes deliveries China hasn't imported liquefied natural gas from the US for 40 days, the longest gap in almost two years, as traders are forced to divert shipments elsewhere to avoid Beijing's tariffs on the super-chilled fuel. The barren streak is the most extended since June 2023, according to ship-tracking data compiled by Bloomberg . There currently aren't any US shipments en route to China either, according to ship-tracking data from Kpler, an analytics firm. The trade war provoked by the Trump administration is threatening to decouple the world's biggest LNG seller and buyer. Beijing slapped a 15% tariff on US LNG shipments from February 10 in retaliation for blanket American levies on Chinese exports. (Reuters) Indonesia: To raise palm oil export levy to 4.5% to 10%, official says Indonesia will raise its palm oil export levy to between 4.5% and 10% of the crude palm oil reference price, up from 3% to 7.5%, to finance a mandated increase in the amount of the oil used in biodiesel, a plantation fund official said on Tuesday. Indonesia raised the mandatory amount of palm oil in its biodiesel mix to 40% this year from 35%. It is studying increasing it to 50% in 2026, as well as a 3% blend for jet fuel next year, as it seeks to curb fuel imports. Kabul Wijayanto, director at the Plantation Fund Agency, which is in charge of collecting and distributing the export levy, said authorities would impose the new rates three days after the regulation is issued. ( Reuters) EU: ECB retains full freedom to act amid uncertainty, Rehn says The European Central Bank (ECB) is maintaining a flexible stance on monetary policy amid heightened geopolitical and economic uncertainty, with officials emphasizing they are not pre-committed to any specific rate path. While inflation is stabilizing around the 2% target, policymakers remain cautious about the risks posed by U.S. trade tariffs, the war in Ukraine, and increased fiscal spending in Europe. ( Bloomberg) Companies Avangaad: Disposes of entire stake in Ta Win Asia Poly Holdings Bhd has ceased to be a substantial shareholder in Ta Win Holdings Bhd after disposing of its entire 5.59% stake in the copper wire manufacturer via a direct business transaction. Ta Win's filing with Bursa Malaysia on Monday showed that Asia Poly disposed of the shares on March 14, but the price was not disclosed. Based on Ta Win's closing price of 3.5 sen on March 14, the stake is valued at RM6.7m. (The Edge) MRCB: Strikes land deals with MOF unit Malaysian Resources Corp Bhd has struck a land swap deal with Cyberview Sdn Bhd, in which the Minister of Finance Inc owns a 92.2% stake. The other shareholders of Cyberview - the master developer of Cyberjaya - include Sime Darby Property Bhd, with a 5.2% stake, and Permodalan Nasional Bhd, with a 2.6% stake. In a filing with Bursa Malaysia, MRCB said its wholly-owned subsidiary, MRCB Land Sdn Bhd, is selling its 70% stake in CSB Development Sdn Bhd (CSBD) to Cyberview for RM219m in cash. The 70% stake in CSBD comprises 700,000 shares and 2.3m redeemable preference shares. (The Edge) Solarvest: Bags RM401m contract to build TNB's 500MW solar farm in Kedah Solarvest Holdings Bhd has secured a RM401m engineering, procurement, construction and commissioning (EPCC) contract for Tenaga Nasional Bhd's 500MW solar farm in Bukit Selembau, Kedah. The 500MW solar farm was awarded under the fifth large-scale solar (LSS5) programme by the Energy Commission (EC), and is the largest solar farm project to be dished out under the LSS programme. In a bourse filing, Solarvest announced that its wholly-owned subsidiary Atlantic Blue Sdn Bhd had received a letter of award (LOA) from TNB Kuala Muda Solar Sdn Bhd, a special purpose vehicle under TNB Renewables Sdn Bhd. (The Edge) Salcon: Secures RM99.8m wastewater-related contracts Water and wastewater engineering company Salcon Bhd has secured two wastewater-related contracts worth RM99.8m. In a bourse filing on Monday, the group said Envitech Sdn Bhd, a 60%-owned subsidiary of Salcon Engineering Berhad, which is in turn a wholly-owned subsidiary of Salcon, had accepted two letters of award to redevelop wastewater treatment plant and wastewater infrastructure. The first contract, valued at RM88.8m, was awarded by Perbadanan Pembangunan Pulau Pinang to build wastewater infrastructure in the Batu Kawan Industrial Park. The project is expected to span over 18 months. (The Edge) Rohas Tecnic: To divest Vietnamese water infra subsidiary for RM87.1m Rohas Tecnic Bhd has entered into a binding term sheet with South Korea-based Korea Water Resources Corporation (K-water) to sell its 30%-owned Vietnamese unit Phu My Vinh Construction and Investment Corporation (PMV) for RM87.1m. In a bourse filing, Rohas stated that the term sheet will take effect from March 14 to April 30 or the signing date of the share sale agreement (SSA). The company also noted that the pro forma effects of the disposal will be detailed in a subsequent announcement upon the SSA's signing. Furthermore, the term sheet does not require approval from the company's shareholders or any regulatory authority. (The Edge) Focus Point: Proposes one-for-three bonus issue Focus Point Holdings Bhd has proposed a one-for-three bonus issue, alongside a dividend reinvestment plan (DRP) and a share grant plan (SGP), aimed at enhancing shareholder value and incentivising employees. The bonus issue will involve 153.99 million new shares, with the entitlement date to be determined after obtaining all necessary approvals. Under the DRP, shareholders will have the option to reinvest their cash dividends into new shares instead of receiving cash payouts. The initiative offers shareholders an opportunity to increase their stake in Focus Point while allowing the company to preserve its cash reserves. (The Edge) Catcha Digital: Buys 51% stake in digital marketing company for RM22.9m Catcha Digital Bhd has finalised the acquisition of a 51% stake in DS Services Sdn Bhd (Digital Symphony) for RM22.9m cash, after more than two years of negotiations. In a filing with the local bourse on Monday, Catcha Digital said it has signed a share sale agreement with Digital Symphony to acquire the controlling stake in the latter. It is worth noting that the parties had signed a letter of intent for the acquisition back in November 2023. In a statement on Monday, Catcha Digital outlined that the acquisition will be made in three instalments over a 24-month period following the completion of the share sale. (The Edge) Source: Mercury Securities Research - 19 Mar 2025.