Aramco’s Record IPO Starts November 17; Offer Size Pending By Bloomberg



(Bloomberg) — Saudi Aramco will allow investors to start bidding for shares in the world’s most-profitable company from Nov. 17. It left potential buyers in the dark about the size of the stake it plans to sell and the pricing range.

The Saudi stock exchange rules prohibits the oil giant from listing additional shares for six months after the start of trading, according to its more than 650-page prospectus. Also, the Saudi government, the company’s sole owner, won’t offer any additional shares during the 12-month period after listing, but retains the right to sell to foreign governments or investors affiliated with foreign governments.

Key details:

  • Institutional book-building period: Nov. 17-Dec. 4
  • Retail subscription period: Nov. 17-Nov. 28
  • Targeted percentage of shares allocated to individual investors will be up to 0.5% of shares
  • Final pricing: Dec. 5
  • Refund of excess subscription amount to individual investors: Dec. 12
  • Aramco sets up share-incentive plan for employees
  • Click here for prospectus

Saudi Arabia is pulling out all the stops to ensure the success of the IPO after Crown Prince Mohammed bin Salman finally decided to offer shares in the world’s largest oil producer. The kingdom cut taxes on Aramco for a third time, revealed incentives for investors not to sell shares and is considering boosting dividends further.

While the prospectus includes Aramco’s profits for the first nine months and details of the company’s operations, it doesn’t include any indication of what valuation the government hopes to achieve. Price guidance for the share sale is expected next week, but people familiar with the deal have told Bloomberg that Crown Prince Mohammed bin Salman would be satisfied with a valuation of between $1.6 trillion and $1.8 trillion.

‘Lack of Clarity’

“This lack of clarity in the prospectus shouldn’t alarm us as it’s a book building exercise and let’s be clear Saudi will do whatever it takes to make this IPO successful because so much hinges on it,” Nasser Saidi, president of Nasser Saidi & Associates said in an interview on Bloomberg TV on Sunday. “This is part of an overall privatization program, which has often been delayed so now we’re getting to the beginning of that program.”

Aramco earned net income of $68.2 billion in the first nine months compared with $83.1 billion a year ago. Revenue slipped to $217 billion from $233 billion.

Saudis and China

With the Aramco IPO, there’s a lot at stake for Prince Mohammed, Saudi Arabia’s de facto ruler, and his Vision 2030 plan to overhaul the economy. He proposed the offering in 2016 as a way to expose the state-owned firm to the rigors of the market and raise money for the sovereign wealth fund.

The richest Saudis are being pressed to commit large sums to the IPO, according to people familiar with the matter. Among those considering sizable purchases are the Olayan family and Prince Alwaleed bin Talal, the billionaire investor who was held for several weeks in Riyadh’s Ritz-Carlton Hotel during 2017’s declared corruption crackdown.

China, the world’s largest oil importer, may commit as much as $10 billion through sovereign wealth funds and other state-owned enterprises, according to people familiar with the situation. An investment would be a hedge against rising oil prices and chime with the objectives of Beijing’s ambitious Belt and Road program.

(Updates with comments from Nasser Saidi in fifth paragraph.)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Germany Starts Hunt for a Central Banker Who Can Stick With ECB By Bloomberg



(Bloomberg) — Germany, a founding member of the euro area and by far its biggest economy, is hunting for someone who can stick with a top job at the European Central Bank.

After Sabine Lautenschlaeger became the third consecutive German to leave the ECB’s Executive Board before her term was finished — stunning almost all her colleagues, who hadn’t been forewarned — Angela Merkel’s government is pressing its case to fill the vacancy. Germany, France and Italy have always had a seat on the six-member body that designs monetary policy.

Key lawmakers from Merkel’s Christian Democrats, speaking on condition of anonymity, said a female candidate is likely, and mentioned Isabel Schnabel, an economic adviser to the government, or Bundesbank Vice President Claudia Buch. Lautenschlaeger is the only woman on the ECB’s 25-person Governing Council.

But hovering over the whole process are questions of political affiliation and German frustration with years of negative interest rates. The administration must decide whether it wants a traditional central banker, a politician with economic heft, or maybe an academic steeped in policy.

The Bundesbank, just 5 kilometers (3 miles) from the ECB in Frankfurt, is the traditional place to start. It was the blueprint for the euro zone’s currency guardian and provided the institution’s first two chief economists in Otmar Issing and Juergen Stark. Lautenschlaeger was the Bundesbank’s vice president.

It’s also a hotbed of discontent with loose policy though. Stark quit in 2011 after disagreeing with the institution’s bond-buying program. On the ECB’s Governing Council, made up of the board and the national central-bank chiefs, Bundesbank President Axel Weber resigned the same year. Current head Jens Weidmann has been a persistent critic of ECB President Mario Draghi’s policies, leading to friction between the two men.

“The natural breeding ground has changed and it doesn’t necessarily need to be the Bundesbank this time,” said Carsten Brzeski, chief economist at ING-DiBa AG in Frankfurt. “I’d definitely go for someone with a strong economic background, but also if you want to have influence on the next ECB, it’s important to have a person who’s less of a hawk and more cooperative in his or her approach to policy.”

Should Germany decide to nominate a woman, the Bundesbank does present an option in Buch, who’s been there five years. The 53-year-old economist already attends ECB Governing Council meetings and is responsible for overseeing financial stability in Germany.

Another option is to look among Germany’s political classes. That was the route taken with Joerg Asmussen, a finance ministry official at the time who joined the ECB board in 2012 and took on the role of international cooperation. He also left early, serving just two years of his eight-year term to return to government.

That precedent could cast the spotlight on someone like Jakob von Weizsaecker, the finance ministry’s chief economist and a former European Parliament lawmaker. Party politics would need to be overcome as he’s affiliated with the Social Democrats, who run the ministry in Germany’s coalition.

Academic Advisers

Alternatively, the government could consider tapping one of the experts from its council of economic advisers. Schnabel is a University of Bonn economist and an expert on financial supervision and banking regulation.

Volker Wieland, a colleague of Schnabel’s on the council and a professor at Goethe University in Frankfurt, could be in the running. His resume includes a PhD from Stanford and five years at the Federal Reserve. He’s the host of an annual conference called the ECB and Its Watchers, which draws the central bank’s big hitters.

Economic research centers such as the Ifo institute in Munich or ZEW in Mannheim, headed by Clemens Fuest and Achim Wambach respectively, might get a cursory consideration.

Another name is Marcel Fratzscher, who runs the DIW Berlin think tank and was previously the head of International Policy Analysis at the ECB. His hurdle might be his frequent criticism of the German economic model and his defense of Draghi’s policies — stances unlikely to win him plaudits in conservative German circles.

In the private sector, Elga Bartsch is head of macro research at BlackRock Inc (NYSE:)., with a long career of covering the euro-area economy and markets. A paper she co-wrote recently with two former central bankers argued for more explicitly coordinated monetary and fiscal policy, a radical version of what both Draghi and his successor from Nov. 1, Christine Lagarde, are advocating.

It’s not clear how such a world view would go down with the German government, which has so far resisted calls to step up its own spending and has a deep culture of separating monetary and fiscal policy. A different approach may be to put someone forward who will continue to push the German line that excessive monetary stimulus is counterproductive.

“A year from now there could be a debate within the council over stopping QE,” said Richard Barwell, head of macro research at BNP Paribas (PA:) Asset Management in London. “Parachuting in a highly respected and persuasive expert on monetary policy who is able to challenge the dovish arguments of colleagues could tip the balance in that discussion.”





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U.S. housing starts race to 12-year high in August By Reuters


© Reuters. U.S. housing starts race to 12-year high in August

WASHINGTON (Reuters) – U.S. homebuilding surged to more than a 12-year high in August as both single- and multi-family housing construction increased, suggesting that lower mortgage rates were finally providing a boost to the struggling housing market.

Housing starts jumped 12.3% to a seasonally adjusted annual rate of 1.364 million units last month, the highest level since June 2007, the Commerce Department said on Wednesday. Data for July was revised to show homebuilding falling to a pace of 1.215 million units, instead of decreasing at a rate of 1.191 million units as previously reported.

Economists polled by Reuters had forecast housing starts would advance to a pace of 1.250 million units in August. Building permits increased 7.7% to a rate of 1.419 million units in August, the highest level since May 2007.

Housing starts rose 6.6% on a year-on-year basis in August.

The housing market, the most sensitive sector to interest rates, had until now shown few signs of benefiting from the Federal Reserve’s monetary policy easing, which has pushed down mortgage rates from last year’s multi-year highs.

Economists and builders had blamed the lackluster performance on land and labor shortages. A survey on Tuesday showed confidence among homebuilders edged up in September, with builders reporting solid demand for homes.

Builders, however, said they “continue to grapple with ongoing supply-side challenges that hinder housing affordability, including a shortage of lots and labor.”

They also noted that a year-long trade war between the United States and China, which has undercut manufacturing, was “holding back home construction in some parts of the nation.”

The 30-year fixed mortgage rate has dropped more than 130 basis points to an average of 3.56%, according to data from mortgage finance agency Freddie Mac. Further declines are likely with the Fed expected to cut interest rates again on Wednesday, to blunt the hit on the economy from the U.S.-China trade tensions.

The U.S. central bank lowered borrowing costs in July for the first time since 2008. Residential investment has contracted for six straight quarters, the longest such stretch since the 2007-2009 recession.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 4.4% to a rate of 919,000 units in August, the highest level since January. Single-family housing starts increased in the West, Midwest and the populous South, but fell in the Northeast.

Permits to build single-family homes vaulted 4.5% to a rate of 866,000 units last month. Permits, however, continued to lag housing starts, suggesting limited scope for a strong rise in single-family homebuilding in the coming months.

Starts for the volatile multi-family housing segment soared 32.8% to a rate of 445,000 units in August, reversing the prior two months’ declines. Though rental inflation has slowed in recent months, economists do not expect the trend to continue as rental vacancy rates remain low.

Permits for the construction of multi-family homes increased 13.3% to a rate of 553,000 units last month.



U.S. Home Starts Fall on Further Weakness in Apartment Building By Bloomberg


© Reuters. U.S. Home Starts Fall on Further Weakness in Apartment Building

(Bloomberg) — unexpectedly fell in July for a third month on another drop in starts of apartment buildings that masked a gain in single-family units.

Residential starts dropped 4% to a 1.19 million annualized rate after a downwardly revised 1.24 million pace in the prior month, according to government figures released Friday. The median forecast in a Bloomberg survey of economists called for a 1.26 million pace.

Multifamily home construction slumped for a second month, while starts of single-family housing increased to the highest level since January.

Key Insights

    • The data on single-family homebuilding, bolstered by the highest level of permits in that category since November, suggest homebuilding remains stable in the face of lot and labor shortages. Some builders are trying to alleviate a nationwide deficit of affordable housing as solid wages and low mortgage rates support demand.
    • , a proxy for future construction, rose 8.4% to a 1.34 million rate, exceeding estimates. The monthly increase was the largest in more than two years.
    • Data out Thursday showed sentiment among U.S. homebuilders rose in August to match this year’s high, but a weaker outlook suggests upward momentum in the months ahead may prove fleeting.
    • Single-family starts climbed 1.3% to 876,000 annualized rate, and permits rose for a third month.
    • Data out next week are forecast to show existing-home sales, which make up the majority of the U.S. housing market, increased in July while the pace of new home sales eased.

Get More

  • Starts for multifamily homes, a category that tends to be volatile and includes apartment buildings and condominiums, decreased 16.2% after a 16.4% decline in June, while permits increased 21.8% last month.
  • Three of four regions posted a decline in starts.
  • The report, produced jointly by the U.S. Census Bureau and the Department of Housing and Urban Development, has a wide margin of error, with a 90% chance that the headline figure was between a 12% decline and 4% increase.

©2019 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



U.S. housing starts fall further, but permits at seven-month high By Reuters


© Reuters. Development and construction continues on a large scale housing project of over 600 homes in Oceanside, California

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. homebuilding fell for a third straight month in July amid a steep decline in the construction of multi-family housing units, but a jump in permits to a seven-month high offered hope for the struggling housing market.

The housing market has not benefited much from declining mortgage rates because of land and labor shortages, which are constraining builders’ ability to construct sought-after lower-priced homes. Housing is one of the weakest spots in the economy, which in recent days has seen a heightened risk of recession.

Housing starts dropped 4.0% to a seasonally adjusted annual rate of 1.191 million units last month, the Commerce Department said on Friday. Homebuilding was likely disrupted by Tropical Storm Barry, which drenched Louisiana in the middle of July.

Data for June was revised down to show homebuilding falling to a pace of 1.241 million units, instead of dropping to a rate of 1.253 million units as previously reported.

Economists polled by Reuters had forecast housing starts would edge up to a pace of 1.257 million units in July.

U.S. stock index futures held gains after the release of the data. Prices of U.S. Treasuries were trading largely lower while the dollar () edged up against a basket of currencies.

The 30-year fixed mortgage rate has dropped to 3.60% from a peak of 4.94% in November, according to data from mortgage finance agency Freddie Mac.

LAND, LABOR SHORTAGES

Further declines are likely as the Federal Reserve is expected to cut interest rates again next month amid growing risks to the economic outlook from trade tensions and slowing global growth, which contributed to an inversion of the U.S. Treasury yield curve and sparked recession fears.

The U.S. 2-year Treasury note yield rose above the 10-year note yield on Wednesday for the first time since June 2007. The U.S. central bank cut its short-term interest rate last month for the first time since 2008.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 1.3% to a rate of 876,000 units in July, the highest level in six months. Single-family housing starts rose in the Northeast, West and Midwest, but dropped 3.9% in the populous South.

Building permits surged 8.4%, the largest gain since June 2017, to a rate of 1.336 million units in July. Last month’s surge is a positive development for permits, which have been weak this year. Much of the decline in permits has been concentrated in the single-family housing segment.

A survey on Thursday showed confidence among homebuilders nudged up in August. Builders reported firm demand for single-family homes but said they “continue to struggle with rising construction costs stemming from excessive regulations, a chronic shortage of workers and a lack of buildable lots.”

According to builders, lower borrowing costs had not boosted the housing market because of the “rate declines occurred due to economic uncertainty.” The housing market continues to grapple with tight inventory and sluggish sales growth. Residential investment has contracted for six straight quarters, the longest such stretch since the 2007-2009 Great Recession.

Permits to build single-family homes increased 1.8% to a rate of 838,000 units in July, the highest level in eight months. Despite the rise last month, permits continue to lag housing starts, which suggests single-family homebuilding could remain tepid.

Starts for the volatile multi-family housing segment dropped 16.2% to a rate of 315,000 units in July. Permits for the construction of multi-family homes surged 21.8% to a rate of 498,000 units last month.

Housing completions increased 7.2% to 1.250 million units last month. Realtors estimate that housing starts and completion rates need to be in a range of 1.5 million to 1.6 million units per month to plug the inventory gap. The stock of housing under construction fell 0.5% to 1.134 million units in July.



Binance Starts Algorand Staking Services After XLM and KMD By Cryptovest


Binance Starts Algorand Staking Services After XLM and KMD

Binance has added another asset to its portfolio of staking coins – Algorand (ALGO). This extends the streak of newly added staking coins offering a form of returns. Binance already supports rewards for Stellar (XLM) and Komodo (KMD), added in the past two weeks.

Algorand is a pure staking blockchain, meaning anyone can hold coins in a wallet and receive direct ALGO rewards. There is no secondary asset to be distributed, as in the case of NEO and GAS. Binance also distributes secondary assets such as ONG for the Ontology network, and VTHO for the VET network.

Algorand is one of the curiosities in the crypto space, as the project was un…

This article appeared first on Cryptovest

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Hong Kong’s Economy Starts to Feel the Hit from Protest Chaos By Bloomberg


© Reuters. Hong Kong’s Economy Starts to Feel the Hit from Protest Chaos

(Bloomberg) — Hong Kong is beginning to reckon with the economic cost of ongoing protests against the government’s extradition bill, as the disruption risks driving away local shoppers and deterring tourists from mainland China.

The Hong Kong Retail Management Association said Tuesday that “most members” reported a single-to-double-digit drop in average sales revenue between June and the first week of July, when multiple demonstrations converging on major office and retail districts took place.

The threat to Hong Kong’s vital retail sector will hit its economy at a time when it is already slowing. Retail sales data for June is due for release on August 1, with the value of goods sold having contracted every month since February.

The “industry is worried that these events will damage Hong Kong’s international image as a safe city, a culinary capital, and a shopping heaven,” the association said in a statement.

Chief Executive Carrie Lam’s bid to ease extraditions to the mainland prompted hundreds of thousands of protesters to take to the streets in a wave of historic protests that has brought parts of the city to a halt since early last month.

Hong Kong Financial Secretary Paul Chan said at a briefing July 15 that second quarter economic output is expected to be “slow,” though there haven’t been obvious capital outflows amid the demonstrations.

Sales Drop

Sa Sa International Holdings Ltd., a seller of cosmetics, reported a 15.3% drop in same store sales in Hong Kong and Macau for the three months through June. The company said the demonstrations had affected some stores, as had a high comparison from the previous year.

For the same period, Chow Tai Fook Jewellery Group Ltd. reported an 11% decline. The political backdrop and a decline in mainland visitors increases the likelihood of a two percentage-point reduction in its first-half operating margin, Catherine Lim, an analyst at Bloomberg Intelligence in Singapore, wrote in a note.

These Brands Are Caught in the Middle of Hong Kong’s Protests

The chances of a marked economic impact from the protests raises comparisons with the Occupy movement that blocked parts of central Hong Kong five years ago. Economic growth slowed in the fourth quarter of 2014 from the previous period, and the government at the time partially blamed that weaker performance on the protest, saying it “affected tourism, hotel, catering, retail and transport industries.”

Carry On

This year, the number of visitors to the city from mainland China has been increasing strongly, thanks in part to the opening of a new bridge linking Hong Kong with the city of Zhuhai, in Guangdong province. Arrivals in May surged 23.6 percent from a year earlier, with the June tally not yet available.

Images of protesters blocking major city thoroughfares — and retail outlets — is likely to pose a significant risk if the demonstrations continue. On July 1, a gathering that ultimately saw protesters break into and vandalize the city’s legislative building hampered retailers in the shopping district of Causeway Bay and elsewhere.

Hong Kong Turmoil Has Wealthy Eyeing Havens Beyond China’s Grasp

Yet most businesses are attempting to carry on.

“There were so many people, it was a mess, no one wanted to come in,” said Chen Yan, 30, who works at the counter of a pharmaceutical store in Causeway Bay. “But we haven’t changed our operations because of the protests. We expect it to be temporary.”

(Updates association comment in second paragraph.)



U.S. housing starts fall; permits hit two-year low By Reuters



WASHINGTON (Reuters) – – U.S. homebuilding fell for a second straight month in June and permits dropped to a two-year low, suggesting the housing market continued to struggle despite lower mortgage rates.

Housing starts decreased 0.9% to a seasonally adjusted annual rate of 1.253 million units last month as a rebound in the construction of single-family housing units was offset by a plunge in multi-family homebuilding, the Commerce Department said on Wednesday.

Data for May was revised slightly down to show homebuilding falling to a pace of 1.265 million units, instead of slipping to a rate of 1.269 million units as previously reported.

Economists polled by Reuters had forecast housing starts dipping to a pace of 1.261 million units in June.

Single-family homebuilding, which accounts for the largest share of the housing market, increased 3.5% to a rate of 847,000 units in June, partially recouping some of May’s sharp drop. Single-family housing starts fell in the Northeast, but rose in the Midwest, West and South.

Building permits tumbled 6.1% to a rate of 1.220 million units in June, the lowest level since May 2017. Permits have been weak this year, with much of the decline concentrated in the single-family housing segment.

The housing market hit a soft patch last year and has been a drag on economic growth for five straight quarters. It likely subtracted from GDP in the second quarter.

The sector is being hamstrung by land and labor shortages, which are making it difficult for builders to fully take advantage of lower borrowing costs and construct more affordable housing units. As a result, the housing market continues to struggle with tight inventory, leading to sluggish sales growth.

The 30-year fixed mortgage rate has dropped to about 3.75% from a peak of 4.94% in November, according to data from mortgage finance agency Freddie Mac. Further declines are likely as the Federal Reserve has signaled it would cut interest rates this month for the first time in a decade.

A survey on Tuesday showed confidence among homebuilders increased in July. Builders, however, complained “they continue to grapple with labor shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes.”

Permits to build single-family homes rose 0.4% to a rate of 813,000 units in June. Despite the increase last month, permits continue to lag housing starts, which suggests single-family homebuilding could remain sluggish.

Starts for the volatile multi-family housing segment dropped 9.2% to a rate of 406,000 units last month. Permits for the construction of multi-family homes plunged 16.8% to a pace of 407,000 units.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Crypto.com (MCO) Starts Shipping Crypto Cards to the US By Cryptovest


Crypto.com (MCO) Starts Shipping Crypto Cards to the US

Crypto.com (MCO) reached the July 15 milestone to distribute crypto-spending cards to US-based users. The MCO cards unveiled their new design based on user demand and will be carried by Metropolitan Commercial Bank.

The MCO cards will carry no monthly or annual fees, and up to 5% cashback, along with airport lounge perks.

Kris Marszalek, Co-Founder and CEO of Crypto.com said:

“We are thrilled to announce our U.S. launch date and unveil our new card range with the Frosted Rose Gold card. Unrivaled perks and incredibly powerful Crypto.com App make the MCO Visa (NYSE:) card a must-have card for eve…

This article appeared first on Cryptovest

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



MCMC starts public inquiry on spectrum allocation for mobile broadband – Business News



KUALA LUMPUR:  The Malaysian Communications and Multimedia Commission (MCMC) has started a public inquiry on spectrum allocation for the mobile broadband service in the country.

The regulator said on Tuesday this was the first public inquiry on the spectrum allocation for the 700 MHz, 2300 MHz and 2600 MHz spectrum bands. It started on July 1 and will end on Aug 30.

“This is the first time that MCMC is undertaking a public inquiry on spectrum allocation matters. This approach is to ensure transparency in the spectrum allocation method. 

“The public inquiry is expected to yield feedback from industry experts, public and interested parties on MCMC’s proposals pertaining to, among others, the spectrum allocation timeframe, implementation plan, technical matters and spectrum fees,” it said.

The document outlines some of MCMC’s preliminary positions relating to the proposed optimum bandwidth for each spectrum band, the award mechanism (tender or direct conversion), timeline for the allocation process and broad principles to determine spectrum fees.

MCMC said these preliminary positions are based on its recent study to ensure optimised use of spectrum through effective spectrum allocation strategies.

It pointed out that optimising the use of spectrum was crucial to ensure improved quality of service, wider coverage and better mobile broadband speeds. This was also in line with the aim of achieving the average speeds of 30 Mbps in 98% of populated areas by 2023 under the National Fiberisation and Connectivity Plan (NFCP).





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