ECB’s Honohan says unsurprised market expectations for ECB interest rate rise on the move. (RTRS) Honohan says does not expect abrupt moves in ECB monetary policy, inflation expectations anchored and says quite possible ECB keeps emergency funding lines in place after rates start to rise. BoE’s King says inflation could near 5% in coming months and then fall back in 2012, but any decision to raise interest rates will be based on longer-term goals. King also added that the central bank hasn’t abandoned inflation target. (RTRS)The Guardian runs the headline Mervyn King dampens the prospect of a rate rise as increases would have a dramatic effect on output and employment.
Russian stock market daily evening report (January 26, 2011, Wednesday) Trades were calm on Tuesday with no serious price bounces on the large range of blue chips. Possibly, the investors are waiting for the session of FED on the matter of base rates and do not apply any active trade ideas due to these reasons The shares of telecommunication sector looked better than the market once again, along with the shares of Sberbank, which announced its volume of the net profit for the previous year – the net profit of the bank grew by more than 5 times versus the year 2009. Shares of Uralkaliy looked worse than the market, which might be due to the delays on behalf of FAS in adoption of the deal on merger with Silvinit.
Asian stock market, economy and companies update (January 26, 2011) Asian equity markets are mainly in the green, tracking the final hour rally in US indices while shrugging more mixed-negative earnings from the US tech sector where both Altera and Yahoo are down over 2%. Nikkei225 is the single regional index in the red, weighed down by yet another recall out of Toyota. Late-session filing by the company pressured Toyota stock by over 2% going into the close.
Malaysia stock market and companies daily report (January 26, 2011) Texchem Resources (TR) signed a 2-year memorandum of agreement with Universiti Sains Malaysia (USM) to jointly study and conduct pilot-scale trials to expand its local in-house crab hatchery expertise. Mah Sing Group is aiming to launch its first property project in China this year and is also working towards participating in property development activities in Vietnam, Singapore and Australia. Ramunia Holdings has made an offer to acquire Oilfab for RM83.8 million. Singapore stock market and companies daily report (Spice i2i, TTJ Holdings, XMH Holdings) (January 26, 2011) Spice i2i Limited (Spice) acquired Affinity Group (Affinity), which owns the Selular Business, for US$175m. TTJ Holdings (TTJ) has successfully secured jobs totaling $12m, raising its order books to approximately $157m. XMH Holdings (XMH), a diesel engine distributor, raised net proceeds of $18.9m through an initial public offering (IPO) of shares on the Singapore Exchange.