Did AirAsia apologise to ensure its survival?

Read here: http://www.freemalaysiatoday.com/category/opinion/2013/11/10/did-airasia-apologise-to-utusan-to-ensure-its-survival/

Will the third quarter earnings be good, bad or ugly, folks?

Can the rally continue, folks?

Chong wrote;

The previous article is a little outdated but still good for others to know. Scoot Airlines have already started but fly very few routes. In fact, the scam-like practices of AirAsia is even more now. I have these to share…..

(1) In the beginning, AirAsia do correspond via phone calls or e-mails. They cancelled one of my flight booking and all 4 of us lost a total of over RM2,000 due to no fault of ours. During the correspondence process, they change people and e-mail address several times and after one year, they told me they don’t have records of my booking anymore and that any seek for refund cannot be later than 6 months.

(2) Beware of their flight time change trick. Once they changed their flight time to more than 45 mins(I think now they change to 60 minutes) delay so we decided to cancel our flights and opt for full refunds. Their staffs in Malaysia will not give you any acknowledgement in black and white. They will tell you it’s standard procedure and not to worry. So we canceled the trip plan. Few days later, they rescheduled their time again to be earlier and denied that I have ever seek for refund as there wasn’t any records on their side.

(3) Now they don’t even entertain you in person for any refunds. All refund-seeking process in Malaysia must be done via their e-form, of which you will have no prove that you have submitted it.

(4) In Malaysia, they have reduced the airport tax amount and increased the “admin or other fees” amount several times so that you will not get any airport tax refund for missed flights(after lessing out their processing fee).

(5) My worst experience was when a friend of mine whom I booked the tickets for him cannot make it for the trip when he was hospitalized due to old age sickness.

AirAsia told me I can get refunds for cancellations due to medical reasons but after going through all the problems of getting the medical documents, they keep changing their requests hoping that I will give up seeking the refund. When I finally met all their demand, they told me I shall not get a full refund but have to minus some “processing fee” charges. I have no choice but to accept since a dollar is still a dollar. Guess what ? They told me the money cannot be returned to my credit card which pay the tickets but can only be returned in a form of a credit shell that must belongs to the passenger concerned and he must have an AirAsia account and e-mail address to process it.

Huh !! The passenger is already dying in the hospital and if he had an e-mail address or AirAsia account, he probably don’t need me to buy the tickets for him earlier.


(6) In another instance, which is quite similar to no. 5 above, a friend of mine purchased some tickets with his own AirAsia account but paid by my credit card. When he seek for refund due to flight cancellation, they told him the refund cannot go to him but to my credit card. See the irony?

I am sure they are other “tricks” they used that I am unaware.

My advice to anyone is “be prepared to lose your money if you fly with AirAsia and only if you can really get cheap tickets and worth your risk”.

Recently(2013) I have seen their fares on offer are the same price for the same period, offered 3 times; and some of their AirAsiaX fare is in fact even cheaper during their 2nd and 3rd time offer.

Read more here: http://airasiafamilies.wordpress.com/2013/11/10/129/

Natasha wrote;

We have had nothing but endless complaints about the budget air line air asia even complaining to the CEO Mr Tony Fernandez himself gets you nowhere now that should tell you what type of air line this is. We are not letting this slip by and we will be seeking and taking all avenues to make this airline reimburse us what we are due. Advise to future travelers think twice about this carrier as it may be cheap but the problems you have after are what cost you thousands.

Read more here: http://airasiafamilies.wordpress.com/2013/11/10/129/

From public champion to money-grabbing witch?

here: http://wubra.blogspot.com/2013/11/kalau-tak-tahu-ini-ada-cerita-pasal.html

From public champion to money-grabbing witch?

The Writing is on the Wall for AA
AA may have started on good terms with the public but the honeymoon period is over.

Its service has fallen to abysmal level and it is treating its own customers with contempt. AA is behaving as if it is operating a monopoly when no such monopoly exists.

Passengers have a choice of other airlines including budget ones like Jetstar which has been complimented for its transparent fixed pricing.

Air Emirates is encroaching in on AA’s lucrative KL-Melbourne route with very competitive prices.

Hoping that its new KL-Sydney route will be as lucrative may not happen as SIA will soon launch a new budget airline called Scoot which will start with the Singapore-Sydney route.

AA has obviously not come to terms with the power of social media. In the old days an enraged customer can do limited damage as he can only influence his immediate family and close friends. These days they can vent their rage in online forums, facebook and twitter and influence hundreds if not thousands.

From public champion to money-grabbing witch?

Long upfront payment, inflexibly, inconvenience, risk of delay and poor service means that customers will demand a big price gap from regular airlines to fly AA.

This means that eventually AA will only be able to sell if their prices are very cheap and below cost. Passengers will look elsewhere when prices approach regular airlines.

A case in point is AA’s cancellation of routes to London, Paris, New Delhi and Mumbai. These are popular routes to densely populated cities which any budget airline should be able to work successfully.

AA’s stated reasons like visa requirements and additional taxes do not make sense as they apply to all airlines and can be added to the fare.

The real reason as reported in The Star is that AA is losing millions on these routes every month.

So why can’t AirAsia raise its prices? The reason it can’t is because passengers will flee to other airlines. They are demanding a price gap to fly AA which the airline cannot provide and still remain profitable.

From public champion to money-grabbing witch?

Delays and Cancellations
Those who fly AA know that delays and cancelled flights are far more common than other airlines.

AA has the dubious practice of combining flights if passenger loads are low without regards to disrupting their passengers’ schedules.

The fine print on their tickets claims they have the right to do this. Only a country with weak consumer laws like Malaysia allows them to get away with it.

Those whose flights have been cancelled and are entitled to a refund find dealing with AA an exercise in patience and perseverance.

Contacting AA staff is an arduous task in itself. Some customers say they are asked to wait 30 to 60 days to process their refunds and when the time is up AA can come up with another excuse to reset the waiting time.

From public champion to money-grabbing witch?

During last year’s peak Christmas to New Year period AA was flying between KL and Melbourne with empty seats while all regular airlines were sold out.

This is extremely unusual for a budget airline which should logically be the first to be sold out. Passengers have wised up to AA’s pricing tricks.

Customers should also compare beyond the basic fare. Things like food, entertainment, comfort kit and baggage have to be priced in as well as other extraneous charges.

Passengers also fly from the LCCT which is a pathetic excuse for an airport and they have to walk a long way to the plane as AA will not pay for aerobridges. This makes AA unsuitable for senior citizens.

Then again AA usually flies to remote airports which may cost more to get to the city.

There are also hidden costs. AA is really only cheap if you book far ahead and pay upfront. It accepts bookings as far as one year ahead.

This means your money is tied down and any change in schedule can be very painful as AA will levy a heavy charge out of proportion to the ticket just to change a date.

Some consumers will find that paying a little more for flexibility is not a waste of money.

From public champion to money-grabbing witch?

Is AirAsia Really Cheap?
AA practices a sliding scale of pricing depending on when you book. Early birds get cheap prices which are probably below AA’s cost while late comers will be charged more.

Then there are the gimmicky promotion giveaway seats which have to be subsidized from somewhere and it’s not from Tony’s pockets.

The upshot is that AA is not always the cheapest and can be more expensive than regular airlines.

As nobody will pay more than a regular airline for a budget airline AA tries to hide its real pricing and make it difficult for customers to compare.

This pricing model of gouging Peter to subsidize Paul does not work anymore. Consumers are getting savvier with tight social networking and no longer assume that AA is always the cheapest.

They will buy when AA’s prices are cheap and stay away when prices increase. There are still some ignorant ones who do not compare prices but depending on consumer ignorance is never a good business model.

From public champion to money-grabbing witch?

Copying Outdated Practices
AA copies a lot from Western budget airlines like Virgin Airways but some of what it copies are outdated or culturally unsuitable for local customers.

It may seem clever to refuse to check in a passenger who arrives 1 minute later than the counter closing time so that he has to buy another ticket but Malaysians find this very infuriating especially when other airlines have been very flexible. MAS will allow you to check in as long as you can make it to the boarding room before the plane flies.

Other practices which do not go down well with passengers are credit card charges, counter check-in charge and seat selection charge. The first two may be considered hidden charges as they are non-optional and should be added to the fare in the first place.

Those who do not pay to select seats (currently at RM35 per passenger from KL) are randomly distributed so families will be split up. This is especially annoying as passengers are not charged for any real goods or services but for the right to sit together which should be theirs in the first place.

It’s like taking something away which should be yours and demanding a fee to give it back.

But probably the most aggravating is AA’s RM1.95 a minute charge to talk to a service staff. It may be for something which is not their fault like flight delays, claim of refund, lost luggage or being overcharged on their credit cards but having to pay by the minute to complain is really annoying.

To add insult to injury they are frequently made to wait on hold while the charge keeps ticking.

From public champion to money-grabbing witch?
Written by Kenny Gan

AA is one of Malaysia’s great success stories. From basically nothing except a few old planes serving a few domestic routes CEO Tony Fernandes has built it into the biggest budget airline in Asia with routes spanning most of Asia and reaching into Australia, NZ and Europe. He has done it without any help from the government unlike pampered bumiputra businessmen.

However AA’s success story has begun to falter amid charges of poor service, inflexibility, hidden charges, deceptive pricing and anti-consumer practices designed to squeeze the maximum from passengers.

Whenever there is a news item on AA in malaysiakini, Malaysian Insider and other online sites readers’ comments are almost wholly negative towards the airline.

It is unusual for a budget airline which purports to provide affordable flying for passengers to end up on the wrong side of public opinion but AirAsia has certainly succeeded.

When did AA descend from a public champion to a money grabbing witch? To be sure this did not happen suddenly but has been ongoing for years.

The negative public perception against AA has reached an alarming level and cannot help but affect the airline’s business. The suit by the Australian consumer watchdog ACCC did not help.

FLIGHT CANCELLATION TO & FROM KLIA LCCT

QZ 8457 10/11/2013 09:30 PM BANDUNG-KUALA LUMPUR CANCELLED

AK 1061 10/11/2013 09:10 PM NANNING-KUALA LUMPUR CANCELLED

QZ 8208 10/11/2013 08:45 PM JAKARTA-KUALA LUMPUR CANCELLED

QZ 8206 10/11/2013 07:35 PM JAKARTA-KUALA LUMPUR CANCELLED

QZ 8451 10/11/2013 05:45 PM BANDUNG-KUALA LUMPUR CANCELLED

AK 1035 10/11/2013 02:45 PM GUILIN-KUALA LUMPUR CANCELLED

QZ 8397 10/11/2013 12:30 PM DENPASAR-KUALA LUMPUR CANCELLED

AK 1337 10/11/2013 12:15 PM SOLO CITY-KUALA LUMPUR CANCELLED

QZ 8393 10/11/2013 11:10 AM DENPASAR-KUALA LUMPUR CANCELLED

QZ 8291 10/11/2013 09:50 AM SURABAYA-KUALA LUMPUR CANCELLED

QZ 8113 10/11/2013 09:45 AM U. PADANG-KUALA LUMPUR CANCELLED

D7 0173 10/11/2013 07:25 AM JEDDAH-KUALA LUMPUR CANCELLED

D7 0222 10/11/2013 11:40 PM KUALA LUMPUR-SYDNEY CANCELLED

QZ 8209 10/11/2013 09:15 PM KUALA LUMPUR-JAKARTA CANCELLED

QZ 8207 10/11/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED

QZ 8452 10/11/2013 06:15 PM KUALA LUMPUR-BANDUNG CANCELLED

AK 1060 10/11/2013 01:10 PM KUALA LUMPUR-NANNING CANCELLED

QZ 8398 10/11/2013 01:00 PM KUALA LUMPUR-DENPASAR CANCELLED

QZ 8394 10/11/2013 11:40 AM KUALA LUMPUR-DENPASAR CANCELLED

QZ 8292 10/11/2013 10:15 AM KUALA LUMPUR-SURABAYA CANCELLED

QZ 8112 10/11/2013 10:10 AM KUALA LUMPUR-U. PADANG CANCELLED

D7 0232 10/11/2013 08:50 AM KUALA LUMPUR-PERTH CANCELLED

View here: http://flight.klia.com.my/fids.aspx

1Q13: USD agst MYR: Rm3.01-Rm3.12 Crude Oil: $91-$99
AA Profit: Rm104.793m

2Q13: USD agst MYR: Rm2.96-Rm3.22 Crude Oil: $88-$98
AA Profit: Rm58.348m (actually a LOSS of Rm19.917m without AA Japan sale gains)

3Q13: USD agst MYR: Rm3.16-Rm3.33 Crude Oil: $92-$111
AA Profit: Good, Bad or Ugly?

Folks, airlines also simply cancel flights when they are not full enough to be profitable. Illegal crew also can cause flight to be cancelled. There are strict rules about how long a pilot can be on duty and how much rest time they need before starting the next day. So if a crew is really delayed they have to delay or cancel their first flight of the next day.

But folks, would cancelling a flight on a clear, sunny day may, seem outrageous?

FLIGHT CANCELLATION TO & FROM KLIA LCCT ONLY

QZ 8457 09/11/2013 09:30 PM BANDUNG-KUALA LUMPUR CANCELLED

QZ 8208 09/11/2013 08:45 PM JAKARTA-KUALA LUMPUR CANCELLED

QZ 8451 09/11/2013 05:45 PM BANDUNG-KUALA LUMPUR CANCELLED

QZ 8162 09/11/2013 04:15 PM JAKARTA-KUALA LUMPUR CANCELLED

D7 0215 09/11/2013 03:50 PM MELBOURNE-KUALA LUMPUR CANCELLED

QZ 8397 09/11/2013 12:30 PM DENPASAR-KUALA LUMPUR CANCELLED

QZ 8393 09/11/2013 11:10 AM DENPASAR-KUALA LUMPUR CANCELLED

QZ 8291 09/11/2013 09:50 AM SURABAYA-KUALA LUMPUR CANCELLED

QZ 8458 09/11/2013 10:05 PM KUALA LUMPUR-BANDUNG CANCELLED

QZ 8209 09/11/2013 09:15 PM KUALA LUMPUR-JAKARTA CANCELLED

QZ 8452 09/11/2013 06:15 PM KUALA LUMPUR-BANDUNG CANCELLED

QZ 8163 09/11/2013 04:40 PM KUALA LUMPUR-JAKARTA CANCELLED

QZ 8398 09/11/2013 01:00 PM KUALA LUMPUR-DENPASAR CANCELLED

QZ 8394 09/11/2013 11:40 AM KUALA LUMPUR-DENPASAR CANCELLED

QZ 8292 09/11/2013 10:15 AM KUALA LUMPUR-SURABAYA CANCELLED

View here: http://flight.klia.com.my/fids.aspx

Folks, normally scheduled flights are sometime cancelled because of bad weather & technical problem. But when done everyday, how?

AirAsia Group CEO Tony Fernandes, on his Twitter account, stated (04-Nov-2013): "Just finalised 3rd quarter numbers. Very pleased. 4th quarter looks very very strong. Costs down as well. 2014 going to be a big year."

Folks, read between the lines:
1. "Just finalised 3rd quarter numbers" twitting about Airasia Group 3Q 2013 Preliminary Operation Statictics. Do you what that is? Google search please...Heheheheh!! Remember folks, the 3Q13 results will also be pressured by the appreciation of the US$ vs. ringgit, which raised aircraft leasing charges, overflying charges, maintenance costs and debt expense. Jet fuel price was also high.

2. "4Q13 looks very very strong" meaning giving an impression that Oct is good. Anything can happen in the month of Nov & Dec 2013 like typhoon Haiyan, stiff fair competition, Fed tapering will trigger another selldown in the Ems & etc! Remember folks, if a business does well, the stock eventually follows!

3. "2014 going to be a big year." Really...really! Aviation industry is full of risk factors & uncertainties e.g. war, climate, political risks, operational risks, procurement risks, stiff competition, industry consolidation, interest rate fluctuations, high jet fuel pice, infectious sickness, financial turmoil & etc. Remember folks, in the business world, the rearview mirror is always clearer than the windshield!

Important point folks, MAS statistics give cause for concern. Cabin load and demand numbers for 3Q13 were astonishingly high, foretelling weak results for both MAS and AirAsia as yields must have been slashed to produce the phenomenal passenger volumes. Only MAHB was smiling & has declared a single-tier interim dividend of 6% for the financial year ending December 31,2013

Hence, 3Q results for both AirAsia and MAS are expected to be poor. Just wait and see!

SECOND DAY FLIGHT ADVISORY : Due to Typhoon Yolanda, the following Philippines’ AirAsia and AirAsia Zest flights will be cancelled today, Saturday, 9 November 2013:

Air Asia Zest Flight Cancellation:
(1). Manila-Kalibo-Manila
PQ 7141
PQ 7142

(2). Manila-Kalibo-Manila
Z2 304
Z2 305
Z2 308
Z2 309
Z2 273
Z2 272
Z2 713
Z2 714
Z2 302
Z2 303

(3). Manila-Tacloban-Manila
Z2 324
Z2 325

(4). Manila–Cebu–Manila
Z2 360
Z2 361
Z2 048
Z2 049
Z2 383

Guests with affected flights will be offered the following options:
1. One-time free flight move within 30 days on the same route, subject to availability
2. Full Credit Shell, valid for 90 days
3. Full Refund

Philippines’ AirAsia and AirAsia Zest will provide update as soon as they are available. For more information and assistance, guests may call Philippines’ AirAsia and AirAsia Zest hotline: (02) 742 – 2742, Mondays – Sundays; 7:00 AM – 11:00 PM.

(1). Yesterday News

Bursa Malaysia, which stayed above the 1,800-point level yesterday, ended lower on renewed worries that the United States Federal Reserve would scale back its stimulus programme ahead of schedule.

(2). Today News

U.S. stocks climbed on Friday, with the S&P 500 bouncing back from its worst hit in 10 weeks to turn positive for the week, after a brighter-than-expected report on the labor market had investors considering whether the economy is strong enough to handle reduced monetary stimulus.

(3) And Now Let The Show Begins

Folks, the data, however, set off speculation that the Federal Reserve could reduce stimulus before the end of the year, with the yield on the benchmark 10-year Treasury note used in figuring mortgage rates and other consumer loans jumping 15 basis points to 2.75 percent. So will there be another selldown in the EMs? Will it be worst than the previous turmoil? Investors have short memories!!

During the 3Q13 the cost environment for AA remains hostile with high fuel prices compounded by a weak Ringgit! Earnings is exptected to be poor for the 3Q13!

So how then, folks?

FLIGHT CANCELLATION TO & FROM KLIA LCCT ONLY!

QZ 8457 08/11/2013 09:30 PM BANDUNG-KUALA LUMPUR CANCELLED

QZ 8295 08/11/2013 09:20 PM SURABAYA-KUALA LUMPUR CANCELLED

AK 1061 08/11/2013 09:10 PM NANNING-KUALA LUMPUR CANCELLED

QZ 8208 08/11/2013 08:45 PM JAKARTA-KUALA LUMPUR CANCELLED

QZ 8451 08/11/2013 05:45 PM BANDUNG-KUALA LUMPUR CANCELLED

AK 1035 08/11/2013 02:45 PM GUILIN-KUALA LUMPUR CANCELLED

QZ 8397 08/11/2013 12:30 PM DENPASAR-KUALA LUMPUR CANCELLED

AK 1337 08/11/2013 12:15 PM SOLO CITY-KUALA LUMPUR CANCELLED

QZ 8393 08/11/2013 11:10 AM DENPASAR-KUALA LUMPUR CANCELLED

QZ 8291 08/11/2013 09:50 AM SURABAYA-KUALA LUMPUR CANCELLED

QZ 8458 08/11/2013 10:05 PM KUALA LUMPUR-BANDUNG CANCELLED

QZ 8296 08/11/2013 09:45 PM KUALA LUMPUR-SURABAYA CANCELLED

QZ 8209 08/11/2013 09:15 PM KUALA LUMPUR-JAKARTA CANCELLED

QZ 8207 08/11/2013 08:20 PM KUALA LUMPUR-JAKARTA CANCELLED

QZ 8452 08/11/2013 06:15 PM KUALA LUMPUR-BANDUNG CANCELLED

AK 1060 08/11/2013 01:10 PM KUALA LUMPUR-NANNING CANCELLED

QZ 8398 08/11/2013 01:00 PM KUALA LUMPUR-DENPASAR CANCELLED

QZ 8394 08/11/2013 11:40 AM KUALA LUMPUR-DENPASAR CANCELLED

QZ 8292 08/11/2013 10:15 AM KUALA LUMPUR-SURABAYA CANCELLED

AK 1034 08/11/2013 05:55 AM KUALA LUMPUR-GUILIN CANCELLED

View here: http://flight.klia.com.my/fids.aspx

TGI Friday! Cheers!!!

Folks, the AA management reshuffle has raised eyebrows as Fernandes had stepped down as CEO of AirAsia and moved to set up a regional base in Jakarta less than two years ago. Some quarters believe it could be due to the changes in the domestic market’s landscape as competition is heating up and the low-cost carrier needs to fight harder to defend its market share.

Could the 3QE13 be poor? Careful now as a small leak can sink a GREAT ship, folks! Investors do have short memories!! Heheheheheheheh!!

Bubble ready to Burst? Are you ready?

Fed officials don’t offer predictions of future equity price movements. But they do believe that rising asset prices boost the so-called wealth effect. As consumers feel richer, they feel emboldened to spend more, which lifts the broader economy. To that end, they have been pursuing very aggressive bond-buying policies while offering guidance on short-term rates that suggest monetary policy will be very easy for years to come.

Over the course of this year, speculation about the Fed easing back on its bond buying generated considerable market volatility. Some officials welcomed this because they said it helped correct market complacency about future Fed policy while flushing out some pockets of excess in some corners of the bond market. But Fed officials also came to lament the move as they saw higher borrowing costs creating fresh headwinds for an economy that wasn’t growing fast enough to begin with.

In an interview Monday, Federal Reserve Bank of St. Louis President James Bullard said the bubble issue remains challenging for Fed officials. “I don’t think we’ve come up with a really great answer” when it comes to dealing with markets that have gone out of line with fundamentals.

Investors have short memories!!

Bubble ready to Burst?

Against that confidence, an equities strategist is warning of a major bubble in global stock prices. In a research note, Nomura Securities strategist Bob Janjuah is warning that next year, 2014 and into 2015, there “could be a 25% to 50% sell off in global stock markets.”

“The major themes are unchanged–anaemic global growth/mediocre fundamentals, what I consider to be extraordinarily and dangerously loose monetary policy settings, very poor global demographics, excessive debt, an enormous misallocation of capital driven by the state sponsored mispricing of money/capital, and excessive financial market/asset price speculation at the expense of any benefit to the real economy,” the analyst says.

Mr. Janjuah says markets are now priced entirely for good news, leaving them vulnerable to adverse developments. But the main driver of the coming bursting of the stock market bubble, as the Nomura analyst sees it, is a much delayed rebalancing of the global economy as central banks pull back from all of their aggressive stimulus activities.

“The next five years has to be about a rebalancing towards the ‘real economy’ and the bottom 90%, at the expense of the top 10%,” Mr. Janjuah writes. “This shift in policy emphasis will not be a happy time for financial markets and speculators while the transition happens,” he says

So folks, are you ready?

Bubble ready to Burst?

As Federal Reserve officials pursue the most aggressive monetary policy stimulus campaign in their institution’s history, they are mindful of the unintended consequences their actions can have on financial markets.

But as it now stands, most remain confident that huge injections of money into the economy haven’t created any bubbles big enough to threaten the overall course of the recovery. That has allowed them to press forward with their aggressive agenda of bond buying, which is aimed at pushing up asset prices in a bid to boost growth and lower unemployment.

Against that confidence, an equities strategist is warning of a major bubble in global stock prices. In a research note, Nomura Securities strategist Bob Janjuah is warning that next year and into 2015, there “could be a 25% to 50% sell off in global stock markets.”

So are you ready folks?

An economic bubble that could burst if China's economy stumbles

Colombo had previously warned that China’s construction driven growth and role as a product assembling centre had pushed the growth of emerging markets which produced raw materials, which he said creates "overheated economies".

He said International Trade and Industry Minister Datuk Seri Mustapa Mohamed’s denial that Malaysia’s economy could go downhill is a classic example of governments’ insistence that everything is fine until it is too late. “There seems to be an unwritten rule that government officials across the world must deny the existence of economic bubbles that pose a great threat to their countries,” Colombo added.

An economic bubble that could burst if China's economy stumbles

Malaysia, ranked sixth Top 20 Global Emerging Markets, had two-way trade with China totalling RM181 billion in 2012. China is now Malaysia’s biggest trading partner with trade expected to reach RM221 billion by the end of 2013. On the other hand, China recently recorded an inflation rate of 3.1% with its exports dropping 0.3% in September from a year earlier.

“It is very difficult to completely deny the existence of a bubble in China, and even worse to say that Southeast Asian economies won’t be affected by its popping,” Colombo wrote in the latest article. He backed up his claims with data by the 2011 Global Cement Report that showed China’s extremely high cement consumption per capita against the country’s growth domestic product.

An economic bubble that could burst if China's economy stumbles

Colombo has been analysing emerging markets and published a cautionary tale in Forbes about the emerging markets bubble, in particular Malaysia’s economic bubble. "Malaysia’s bubble will most likely pop when China’s economic bubble pops and/or as global and local interest rates continue to rise, which are what caused the country’s credit and asset bubble in the first place,” he wrote.

He also noted that Malaysia's high government and household debt is contributing to the credit bubble. The analyst said that the emerging markets bubble came about after China pursued an aggressive credit-driven, infrastructure-based growth strategy.

An economic bubble that could burst if China's economy stumbles

Malaysia's denial that it faces an economic bubble that could burst if China's economy stumbles will affect the Southeast Asian nation's ability to detect problems and provide solutions, says financial analyst Jesse Colombo.

The New York-based analyst had earlier written in Forbes online magazine that the Malaysian economy will suffer if the world's second-largest economy falters and when global interest rates rise.

“Denying the existence of bubbles does not make them disappear, but only serves to hamper the early detection process that is so critical to the survival of terminal illnesses, whether physical or economic,” Colombo said in a new article in Forbes published month.

India’s rupee led losses in Asian currencies this week as overseas investors cut holdings of the region’s stocks on speculation U.S. policy makers will cut stimulus this year. The Indian rupee lost 1.4 percent this week to 62.6325 per dollar as of 9:13 a.m. in Mumbai.

The rupiah was headed for a second weekly decline after data showed gross domestic product rose 5.6 percent last quarter from a year earlier, the slowest pace since 2009. The nation recorded trade deficits in seven of the first nine months of this year.

The baht touched a three-week low of 31.375 per dollar today on concern anti-government protests triggered by a proposed amnesty law for political offenses will deepen a slowdown in Southeast Asia’s second-biggest economy.

Folks, the euro faced selling pressure against the dollar on Friday after plunging in New York in response to the European Central Bank's surprise decision to cut interest rates and warn of a long period of low inflation. The dollar managed to claw back some of the losses seen late on Thursday as better-than-expected US economic growth data fuelled speculation the Federal Reserve would soon wind down its stimulus drive stimulus programme.

So what next, folks?

Will the fed taper? Will the bubble burst? Investors have short memories!

Can the rally continue? Can the price get cheaper? Are you ready?

European equities are expected to open lower on Friday as investors await the latest U.S. non-farm payrolls report. The FTSE is expected to open down 30 points at 6,667, the German DAX 36 points lower at 9,045 and the French CAC down 17 points at 4,264.

Asian stocks tumbled on Friday as a sell-off on Wall Street overshadowed upbeat Chinese trade data and as attention turned to October's U.S. non-farm payrolls report, which could shed some light on when the U.S. Federal Reserve might start to taper its monetary stimulus.

Careful now, folks!

The ringgit opened lower against the US dollar for the fourth consecutive day today due to no buying interest for the local unit, dealers said.

A dealer said investors remained on the sidelines, waiting for the US Federal Reserve to announce on when it is going to start scaling back its US$85 billion-a-month bond-buying programme.

Remember folks, beware of little expenses; a small leak can sink a GREAT ship! That why there a major reshuffle at AA!

Quantitative Easing #1: $1.450 trillion
Quantitative Easing #2: $1.267 trillion
Quantitative Easing #3: $1.190 trillion
Total sum of 3 QE $3.826 trillion at the end of Oct. 31, 2013. Folks, this already-staggering amount will keep growing by an additional $85 billion every month until the Fed starts "tapering."

Every citizen of the western world must by now know that credit bubbles can and do burst dramatically when overstretched borrowers miss payments, leading to losses among the investors who provided the debt just like what happened when housing bubble bursts and stock market crashed in 2008. After a four-year bond market rally driven by almost zero interest rates and money printing from central banks, the inevitable prospect of higher rates, known as duration-risk in bond trader parlance, now poses a far greater threat to corporate bond investors than borrower default. In the credit markets, when money yields close to zero, it is destructive, not constructive.

The 30-year Treasury Bond has got to be bought by the Fed and it will mean that there is no exit policy. Fed could taper to $10 billion a month somewhere but it might go to continue to march over the cliff of destroying our currency. And when investors realized that interest rates must rise and bond prices must fall, they don’t want those Treasury Bonds anymore so investors will sell them to Fed. Worldwide destruction of currencies, often called currency wars is the backside of the bursting of the bond bubble.

Now a bigger question folks, will there be the biggest turmoil in EMs too?

What people are saying about the fate of the U.S. stock market!

Tim Price, Money Week: " The market trades at over 24 times historic earnings. That strongly suggests that U.S. stock markets are significantly overvalued. Given that the U.S. stock market is also the largest in the world, any decline in U.S. stocks is likely to have a gravitational impact on stock markets internationally. ... It strikes me that if there were ever a time to have all your investment eggs in one basket, now is not that time. The future is simply too uncertain."

Care for gold as a safe investment option, folks?

What people are saying about the fate of the U.S. stock market!

Shah Gilani, Money Morning: "Nothing goes up forever. Not the Federal Reserve's balance sheet, not global debt levels and not stock markets ... even when governments don't shut down. ... If the Fed-induced pump priming of financial assets isn't backstopped by strong and real global GDP growth, the increasing debt burden of the world's citizens will act as the ultimate pinprick that explodes the United States' inflated financial assets bubble ... and other global bubbles."

Folks, Harry Houdini was famous for his escapes... but will this bull market be famous for escapes of its own? Will the rally continue?

What people are saying about the fate of the U.S. stock market!

Jesse Colombo, Forbes: "I appreciate bull markets like any normal person, but I want it to be predicated on sustainable growth. ... Unfortunately, I believe that the current bull market has devolved into yet another bubble. ... The global economic recovery is actually what I call a 'Bubblecovery' ... that is driven by inflating post-2009 bubbles in China, emerging markets, Australia, Canada, Northern and Western European housing, U.S. housing, U.S. healthcare, U.S. higher education, global bonds, and tech. ... Only a few of these bubbles need to pop to create a devastating economic shock that reverberates around the world, which means that another economic crisis is already 'baked into the cake.'"

Folks, the US Federal Reserve is blowing a bubble, effectively printing money, but all the money is going into stock prices in the context of low interest rates. The US stock market got a positive bump recently on news last september that the US Federal Reserve would continue its policy of quantitative easing for the forseeable future.

Many hedge funds and more conservative financial pundits are complaining that the Fed's action is obscuring real value and blowing a bubble. So will the bubble burst? Remember folks, bubble do burst!

Now in the Obama years, both fiscal and monetary stimulus reached a crescendo. The economy has been anemic, but stock prices have taken wing. Wall Street sees itself protected by the so-called “Bernanke put.” Not only have interest rates been at zero throughout the Obama presidency, but the Fed is actually printing money to the tune of $85 billion per month in order to buy Treasury bonds and other financial assets as part of its quantitative easing program. Fed Chairman Ben Bernanke is expected to support stock prices regardless of how high they go.

The 2013 stock market rally may be the biggest of the presidential rallies—the Dow has more than doubled from its 2009 nadir to its current record—but it may also be based on the most tenuous foundations. Meanwhile, fiscal stimulus appears to have reached its limit, as evidenced by bitter political fighting in Congress. This opens the way for a continued run-up in stock prices and then for a spectacular, possibly open-ended, bursting of the Obama bubble.

Will the US economy bubble burst? Careful now, folks!

Finance The Reality Is We Re Living In A Bubble - And All Bubbles Burst

View here: http://youtu.be/yHGTzUesvy0

Folks, the AA management reshuffle has raised eyebrows as Fernandes had stepped down as CEO of AirAsia and moved to set up a regional base in Jakarta less than two years ago.

Some quarters believe it could be due to the changes in the domestic market’s landscape as competition is heating up and the low-cost carrier needs to fight harder to defend its market share.

Could the 3QE13 be poor? Careful now as a small leak can sink a GREAT ship. folks!

Folks, the U.S. third-quarter GDP report suggested the world's biggest economy was not out of the woods yet. Data showed U.S. growth accelerated to 2.8 percent in July-September, well above economists forecast of 2.0 percent growth. The dollar managed to strengthen on the U.S. data, as investors bet the Federal Reserve may be able to cut back its stimulus spending later this year.

Another turmoil in the EMs? Careful now, folks!

Folks, when a market gets as frothy as this one, logic goes out the window. Emotion takes over. And soon, like a drug addict coming up with excuses, the bulls start looking silly. That's what's happening now.

Overconfident investors are getting overwhelmed by another dot-com bubble, stimulus fatigue, and in the twisted logic that passes for investment rationale these days, a strengthening U.S. economy.

Will the weak rally continue?

Emerging markets get no love even as US bats up record highs as funds still aren't finding their way back to most emerging markets. A sense of deja vu, foreign funds flowed out of emerging Asian markets. Emerging Asian market firms overall exhibit weaker aggregate earnings quality than developed market firms.

The region's structural problems, which came into focus mid-year and may have been masked by the Federal Reserve's decision to delay tapering its asset purchases, have only become more apparent. Indonesia trade data showed a slump & current account deficit is likely to remain for a period of time. Malaysia's current account surplus is fast narrowing, leaving the country's currency vulnerable to any changes in the Feb's policy.

So folks, will the Fed taper in december meeting? Careful now!

Asian stocks fell, with the regional benchmark index heading for the longest streak of weekly losses in five months, after faster U.S. economic growth fueled concern the Federal Reserve may reduce stimulus sooner than expected.

Move over, Ryanair, the new low-cost model is Jetstar! Airasia?

Jetstar may attribute its success largely to its focus on local and independent management, but you cannot rule out parental influence. The airline is not alone in that aspect, if you consider the many others so conceived. This could well be the reason why AirAsia failed to work with partner All Nippon Airways (ANA) venture which has since been fully assimilated by ANA and the airline renamed Vanilla Air. Yet Qantas and Japan Airlines so far seem to have done all right in the case of Jetstar Japan.

Good bloodline may provide an advantageous lift-off; the rest depends on the offspring coming into its own. Jetstar has scored many firsts since its inception, among them the first low-cost carrier (LCC) in Asia/Pacific to introduce customer self-service for changes and disruptions, SMS boarding passes, and the unbundling of check-in bags. It was also the first LCC to put on board iPads with the latest content and the first LCC to offer interline and codeshare flights. Soon it will be the first LCC to launch avatar chat dubbed “Ask Jess”.

In all fairness to Ryanair, it is an equally innovative airline and it should be commended for being a bold one too. Here is where the path diverges for Ryanair & Jetstar. As a true blue low-cost carrier, Ryanair is focused on measures aimed at reducing costs further. The first principle of economics is that ceteris paribus, consumers will go for the lowest cost. Ryanair goes further with other measures such as charging a fee for counter check-in and has no compunction about bumping off a passenger who arrives at the airport without a pre-printed boarding pass. Scrimping on staff numbers to provide customer service also helps reduce its operating costs. O’Leary raised some brows when he suggested charging for the use of the aircraft loo and providing standing room only fares. The vibes turn out to be negative.

Jetstar on the other hand offers more positive solutions to perceived constraints that may be considered by many travellers as necessary evils of the budget travel mode. It has adopted a consolatory approach that has earned it brownie points. What little additional costs it incurs on the swings, it more than makes up for it on the roundabouts. Ancillary services are a major earner for the airline.