Daily Morning Note – 7 December 2018

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YOUR PHILLIP SUMMARY

Shares in Asia traded higher on Friday morning on the back of a report suggesting the U.S. Federal Reserve could consider a slower tempo of increasing interest rates than had been previously expected. As a part of the Fed's emerging "data dependent" plan, it could choose to pause the regular quarter-point increases to the federal funds rates and not hike in March, according to a WSJ report.

U.S. equities recovered from the lows of the day after a late rally in large technology stocks helped to propel the NASDAQ 100 higher. Financial markets remained volatile on bets that the trade truce between China and the U.S. won’t last after the arrest of Huawei’s chief financial officer. Crude dropped the most in almost two weeks amid signals that OPEC, Russia and other aligned oil producers won’t curb output enough to erase a supply overhang.


Please note that today is the last Morning Note publication for 2018. Weekly webinar and morning note will resume in January 2019. The PSR team wishes you a MerryChrtistmas and Happy Holidays


BREAKING NEWS

Tesla has $920 million worth of debt coming due in March. The company informed holders of the notes last week that, if they elect to convert the notes, they will be paid in a 50-50 mix of equity and cash. Tesla turns a profit last quarter, the third profitable quarter since going public in 2010. The bonds have a conversion price of $359.88 per share. If Tesla's share price is below that amount by the due date of March 1, 2019, the notes must be paid by the company in cash to the holders. If the stock price is above, notes are generally converted into equity shares.

Singapore-based startup SolarHome – which sells pay-as-you-go solar power systems to households in Myanmar – has turned to debt from crowdfunding platforms to fund its expansion. It has raised US$10 million in total in unsecured debt that comes with an interest of under 9 per cent per annum.

The Monetary Authority of Singapore (MAS) and Singapore Exchange Regulation (SGX Regco) have decided not to allow Noble Group (NGL) to transfer its listing status to New Noble as part of NGL’s proposed restructuring, MAS, SGX Regco and the Singapore Police Force said in a joint statement on Thursday.

OPEC tentatively agreed to an oil output cut on Thursday but was waiting for a commitment from non-OPEC heavyweight Russia before deciding the exact volumes for a production reduction aimed at propping up crude prices, two sources from the group said

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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