GPacket to miss June's target

Here's a quick update on Green Packet(GP). Seems like GP's plan to deploy WiMax broadband commercially by the first half of 2008 has been delayed. According to Bernama, PACKET One Networks (Malaysia) Sdn Bhd, a subsidiary of GP plans to make its WiMax service commercially available in the Klang Valley only in the third quarter of 2008. "This will upon completion of ongoing user trials", said Michael Lai, chief executive officer of Packet One. The questions now are when is the actual commencement date of 3rd quarter? (July 1 or Sept 30), what would the financial impact be and will the 1st mover advantage be taken over by the "hush-hush" YTLe? As mentioned here previously, GP must ensure that its WiMax roll out is a success as much of the future earnings depends on it. Perhaps, GP wants to make sure they are "really ready" before they step into the unknown wilderness of WiMax. Meanwhile, GP's share price has lost about 56% to RM1.23 since its May's high of RM2.80. There were lesser share buyback activities by the company for the last one month (only 46,000 shares at around RM1.29 -RM1.39). Also during the same period, Goldman Sachs International sold off another 1,231,000 shares in the open market and has now ceased to be the substantial shareholder of the company. So much for confidence huh? also Puan...do you need to consider revising downwards your "internal target" of triple digit growth in revenue for GP this year?

* Mexico raised borrowing cost for the 1st time in 8 months last Friday to tackle inflation. If the European Central Bank were to raise its rate by one-quarter of a percent next month as expected to fight inflation, it would stand at 4.25% or more than double the Fed rates of 2%. (For our information, May's CPI for US and Euro zone are 4.2% and 3.7% respectively). The impact of raising interest rate in Europe will cause currency traders to throw the USD in favour of the higher yielding Euros. It will slow down Euro Zone economies but will lead to higher commodity prices and spoke inflation further in the US. What can the Central banks do now? What will be Fed's interest rate decision tomorrow? Bernanke has already hinted dangerously a raise in interest rate in the US could come as early as August. Are the economies of the US and Euro Zone in stagflation already where government policies may do more harm than any good to the economy?

* Another inflationary play. BHP Billiton Ltd won a 85% rise in the benchmark price for iron ore from China following a similar deal made by Rio Tinto Ltd. (discussed here previously -freight premium). The price tops the 65-71% rise that Vale received earlier this year.

* FT.com: Vietnam temporarily suspended all gold imports in a bid to tackle the country's spiraling trade deficit and to help support the dong. It was noted that import of gold to date before suspension was 45 tonnes or USD1.7b (2007: 70 tonnes or USD1.6b).

* ST: According to EU statistics, Luxembourg and Ireland are the richest countries in EU while Bulgaria is the poorest.