☕️ Zombie airline, MAS, to get RM3.6 billion bailout (again) from Khazanah

Jay-Z to sell half of his Champagne brand to luxury giant, LVMH. 50% of tourism business Malacca have shut down due to the pandemic. TransferWise,. the fintech giant is now known as Wise.

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1. MARKET SUMMARY


2. NUMBERS AT A GLANCE

RM55.5 million were sold short today and Top Glove Corp Bhd’s shares were shorted the most worth RM15.31 million. Meanwhile, Top Glove announced RM58.9mil in share buy back today.

USD1 billion - estimated profit on Tesla’s Bitcoin position. The company is on a trajectory to make more from its Bitcoin investment than selling its EV cars.

RM15 billion - Malaysias government is injecting this amount into building up 5G infrastructure over the next 10 years.

500,000 lives have been lost due to Covid-19 in the United States.


3. COVID-19 SUMMARY


4. IN MALAYSIA 🇲🇾

  1. Pos Malaysia Bhd recorded revenue of RM2.33 billion in 2020 but reported net loss of RM309.2 million for the year. The group postal is on the 10th streak of consecutive loss-making quarters.

  2. Petronas Gas Bhd is constructing 42km gas pipeline costing RM541 million which link its Peninsular Gas Utilisation (PGU) II to a power plant in Pulau Indah, Selangor. The pipeline will transport gas to a prospective 1,200 megawatt gas fired, combined-cycle gas turbine power plant in Pulau Indah, and the related industrial areas along its route.

  3. Perodua opened the order books for the Altiva, an SUV powered by an 1.0L turbo engine. The prices range between RM62,500 to RM73,400 on-the-road without insurance, with sales tax exemption.

  4. The High Court has rejected a government suit to forfeit RM677 million seized from Johor UMNO which was alleged to be linked to 1Malaysia Development Bhd scandal. The court found that the applicant had failed to prove the money was proceeds from unlawful activities.

  5. According to Malaysian Association of Tour and Travel Agents (MATTA), 50% of tourism players in Malacca have closed their shutters partly due to the pandemic as the borders control have been in place since the 12th of January 2021.

  6. Khazanah Nasional Bhd will inject RM3.6 billion into the national carrier’s holding company Malaysia Aviation Group Bhd (MAG) to fund the business until 2025 after the UK High Court has approved the airline’s RM16 billion restructuring plan. Another bailout. Constant drain of taxpayers’ money.


5. AROUND THE WORLD 🌎

  1. Royal Caribbean Group, the cruise operator of ‘Oasis of the Sea’ and ‘Symphony of the Seas’ has reportedUSD1.37 billion in losses for the quarter ended Dec 31. Its revenue for the quarter plunged by 98% from USD2.52 billion to USD34.1 million from a year earlier as the pandemic brought the industry to a standstill.

    Royal Caribbean has USD4.4 billion of liquidity, after raising USD1 billion during the 4th quarter. Despite the current situation, the future remains upbeat as the company said that bookings for the first half of 2022 were within historical ranges and at higher prices, indicating a strong demand for cruise holidays.  

  2. TransferWise, the fintech remittance giant, has now rebranded itself to Wise ten years on since its founding in 2011. Though no mention of an IPO, ‘WISE’ makes for a good stock ticker. Wise was last valued at USD5 billion back in Jul 2020. 

    A quick glance on Wise:

    a. 10 million personal and business customers

    b. Processed GBP4.5 billion in cross-borders transactions monthly and claiming to help customers save approximately GBP1 billion a year in reduced fees

    c. Holds money in 55 currencies and get real account numbers in 10 currencies 

    d. Holds GBP3 billion in customers’ funds with 1.4 million debit cards issued

    e. 150,000 new businesses joined Wise in the past 12 months

  3. United Airlines is voluntarily taking its 24 active Boeing 777s out of service temporarily after one of its planes suffered an engine failure shortly after taking off and engine parts falling off and landing a nearby village with thankfully no casualties. These fleet of planes are powered by the same Pratt and Whitney engines. 

  4. Moet Hennessy, the wine and spirits division of luxury goods conglomerate LVMH announced that it will be acquiring a 50% stake in Jay-Z’s Champagne brand, Armand de Brignac. Jay-Z acquired half the company back in 2006 and bought the remaining half in 2014. The brand, which is known by the nickname ‘Ace of Spades’, sold more than 500,000 bottles in 2019. No amount was disclosed for the stake. The Champagne industry was hit hard in 2020 as there were fewer parties and nights out due to the pandemic, with an estimated 18% fall in volume. 

    Prior to the pandemic, the Champagne industry is on a consistent growth trend. 2019 recorded the 7th consecutive year of record sales in the US. 297 million bottles of Champagne was exported globally with 25 million heading to the US, amounting to over USD752.6 million imports to the US, marking a 15.3% increase from a year earlier. At 500,000 bottles sold in 2019, the ‘Ace of Spades’ commanded a tiny market share of 2%.

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