Daily Morning Note – 15 March 2019

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YOUR PHILLIP SUMMARY

U.S. stocks closed mostly lower Thursday as investors digested headlines suggesting progress toward a U.S.-China trade deal has stalled against the backdrop of weaker-than-expected Chinese economic data. The Dow Jones Industrial Average DJIA bucked the broader market’s decline to rise 7.05 points to 25,709.94. The S&P 500 index SPX slipped 2.44 points to 2,808.48, and the Nasdaq Composite Index COMP shed 12.50 points, or 0.2%, to 7,630.91.

A meeting between President Donald Trump and Chinese President Xi Jinping will be delayed until at least April, Bloomberg News reported, indicating that a bilateral trade deal will not be finalized this month. Disappointing industrial output from China also provided more signs that the world’s second-largest economy has continued to decelerate, heightening anxieties about sluggish global growth.

Meanwhile, the U.K. Parliament voted to request an extension of the March 29 Brexit deadline to June 30 if lawmakers can agree to a withdrawal deal by March 20. Thursday’s vote comes after Prime Minister Theresa May failed to secure support for her revised Brexit plan and lawmakers on Wednesday ruled out a no-deal exit. Market participants have closely watched Brexit negotiations because the threat of a disorderly exit from the EU by Britain could roil global market.



BREAKING NEWS

Credit rating agency Fitch Ratings said that the crisis surrounding the Boeing 737 Max could be a concern throughout the aviation credit sector for much of 2019. Countries and airlines across the world have been grounding the aircraft over safety concerns after the deadly Ethiopian Airlines Boeing crash on March 10, which followed a fatal accident in Indonesia in October.

Datapulse Technology has posted a net loss of S$336,000 in the second quarter, reversing from a net profit of S$38.1 million in the same period a year earlier, in the absence of an exceptional gain on sale of a leasehold property.

Fiat Chrysler Automobiles will recall nearly 863,000 SUVs and sedans that failed to meet federal emissions standards, US regulators announced Wednesday. The voluntary recall involves models of the Dodge Journey, Chrysler 200, Dodge Avenger and Dodge Caliber sedans as well as the Jeep Compass and Jeep Patriot SUVs produced for model years 2011 and 2016, according to a statement from the US Environmental Protection Agency.

Oxley has found a buyer for Chevron House, after owning the Grade-A office building in Raffles Place for about a year. The purchase consideration is S$1.025 billion, and the buyer is US-based real estate fund AEW, The Business Times understands. Oxley said on Thursday that it had accepted an expression of interest (EOI) to acquire Chevron House. The EOI is not legally binding and is subject to the conduct of due diligence.

Keppel Infrastructure Trust (KIT) will raise S$450 million through a placement and a non-renounceable underwritten preferential offering of new units, its manager announced in a regulatory filing on Thursday. About S$440.3 million of the proceeds will be used to partially repay a loan facility taken for the A$770 million (S$737.6 million) acquisition of Ixom HoldCo, a water treatment chemicals distributor, said the manager. The S$9.7 million remainder will go to related fees and expenses.

Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, PSR

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