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Goldman Sachs executives in Malaysia to discuss 1MDB: finance minister
KUALA LUMPUR – Executives from U.S. investment bank Goldman Sachs would resume negotiations with the Malaysian government this week over the recovery of assets lost in the scandal at sovereign fund 1MDB, Finance Minister Tengku Zafrul Abdul Aziz said on Monday.
Last month, Tengku Zafrul said even compensation of $3 billion would be unacceptable, and that Malaysia would pursue its legal case against Goldman Sachs until an acceptable settlement was offered.
Three units of Goldman Sachs Group Inc (GS.N) have pleaded not guilty in Malaysia to misleading investors over bond sales totalling $6.5 billion that the bank helped raise for 1MDB.
Public outrage over the billions of dollars lost at 1MDB played a part in the defeat of then prime minister Najib Razak in a 2018 election. Najib’s United Malays National Organisation returned to power in March as a partner in a new coalition government led by Prime Minister Yassin Muhyiddin.
Full coverage: REUTERS
New Zealand economy doing better than expected, finance minister says
WELLINGTON – New Zealand’s economy is doing better than predicted, thanks to an early economic and health response to the coronavirus pandemic, the finance minister said on Monday.
The government announced plans to tackle a potential second wave of infections by setting aside NZ$14 billion ($9.16 billion) from a COVID Response and Recovery Fund included in this year’s budget in May.
“The economy is doing better than expected and is more open than anywhere else in the world,” Grant Robertson told a news conference.
Full coverage: REUTERS
Thai cenbank says could be several years before tourist numbers normalise
BANGKOK – Thailand’s central bank chief said on Monday it would take several years for foreign tourist numbers to return to the 40 million a year level, with the coronavirus pandemic hitting a lucrative industry that provides a lot of jobs.
The Bank of Thailand (BOT) expects only 8 million foreign visitors this year, down 80% from a record 39.8 million last year, when foreign receipts accounted for 11.4% of GDP.
The central bank has forecast Southeast Asia’s second-largest economy will shrink by a record 8.1%, with bottom seen in the second quarter, Governor Veerathai Santiprabhob told a seminar.
Full coverage: REUTERS
Ebay nears deal to sell classified-ads unit to Norway’s Adventia: WSJ
EBay Inc (EBAY.O) is in advanced talks to sell its classified-ads unit to Norwegian group Adevinta ADEV.OL as the online auction pioneer seeks to refocus on its core marketplace business, the Wall Street Journal reported on Monday.
The price of the cash-and-stock deal was not disclosed, but the eBay unit is expected to sell for roughly $8 billion or more and the agreement could be announced as soon as Monday, WSJ on.wsj.com/2DZSAuq said, citing people familiar with the matter.
Full coverage: REUTERS
Asian shares rise, euro at four-month peak on EU talks progress
SYDNEY – Asian shares posted gains on Monday and the euro rose to four-month highs, as EU leaders appeared to make some headway after three days of haggling on a plan to revive their economies, even as coronavirus cases increased in many countries.
Dutch Prime Minister Mark Rutte said EU leaders were making progress but warned discussions could still fall apart, while summit chairman Charles Michel urged them to make one last push on “mission impossible”.
European markets were set to open higher with pan-region EuroSTOXX 50 futures, German DAX futures, and FTSE futures all trading up 0.2%, reversing earlier losses during Asia trade.
In the United States, E-mini futures for the S&P 500 were down 0.5%.
Full coverage: REUTERS
Euro jumps to four-month peak on hints of progress in debt talks
TOKYO – The euro jumped to a four-month high against the dollar on Monday, boosted by European leaders saying progress was being made in talks to take on debt jointly to help their economies.
The euro gained 0.2% to $1.1452, having risen to as high as $1.14555, its loftiest level since March, as EU leaders appeared within a whisker of breaking an impasse over a proposed 750 billion euro (684.76 billion pounds) recovery fund.
With the marathon talks adjourned until 1600 CET (1400 GMT) on Monday, Austrian Chancellor Sebestian Kurz and Dutch Prime Minister Mark Rutte, leaders from two of the so-called “frugal four”, said progress was being made.
Rutte said talks had been close to failing, but the chairman was now working on a new EU compromise proposal.
Full coverage: REUTERS
