Daily Morning Note – 14 January 2019

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YOUR PHILLIP SUMMARY

Stocks on Friday ended with slight losses, but capped a week that helped to propel the Dow and S&P 500 out of corrective phases as progress on trade talks with China and the U.S. overshadowed a partial government shutdown. For the week, the Dow booked a weekly gain of 2.4%, the S&P 500 ended 2.5% for the period, while the Nasdaq achieved a weekly return of 3.5%

Today marked the 24th day of the government shutdown. It will only take another two weeks for the shutdown to cost the economy more than $6 billion, according to S&P Global Ratings, exceeding the $5.7 billion that President Donald Trump demanded to fund his proposed border wall. Although this has yet to shake the market so far, concerns on the impact of a prolonged shutdown will likely be cause for concern for investors.

As for the trade war, China and the U.S. are moving ahead with plans to hold a round of higher-level talks to resolve their continuing trade conflict, with Vice Premier Liu He scheduled to meet U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin at Washington in late January.

Source: SGXnet, The Business Times

BREAKING NEWS

CapitaLand is acquiring Temasek’s subsidiary Ascendas-Singbridge (ASB) in a S$11 billion deal aimed at creating Asia’s largest diversified real estate group. After the transaction, CapitaLand’s combined total assets under management (AUM) will exceed S$116 billion, and cover asset classes such as logistics/business parks, industrial, lodging, commercial, retail and residential. In addition, the group will surpass CapitaLand’s 2020 AUM target of S$100 billion, putting it among the top 10 real estate investment managers in the world.

Creative Technology said on Monday that it is ready to work with original equipment manufacturers to incorporate its Super X-Fi headphone technology into their products, after getting a good response from some large players at last week’s CES tech trade show in the US.

Energy solutions provider Keppel Infrastructure Holdings has secured a contract to design, build and operate pipe racks on Jurong Island worth about S$40 million. The contract was awarded by JTC Corporation to Pipenet, a wholly owned subsidiary of Keppel Infrastructure, for the construction of pipe racks along parts of Banyan Drive, Banyan Avenue and the Jurong Island Highway that will facilitate pipeline connection to the Jurong Rock Caverns.

Apple‘s latest iPhone models are facing huge discounts in China as retailers try to sell the struggling devices. That comes as the top-of-the-line Apple smartphones have posted poor China sales on what experts say are too-high prices for the world’s largest smartphone market and a lack of innovative features compared to local competitors like Huawei.

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

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