Daily Morning Note – 19 October 2018

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YOUR PHILLIP SUMMARY

U.S. stocks closed sharply lower Thursday, dogged by worries about global growth and as investors continued to weigh minutes of the Federal Reserve’s September meeting, which were viewed as hawkish.

A big drop in China’s stock market underscored simmering worries about the possibility of emerging-market troubles spreading to other regions as well as the impact of U.S.-China trade tensions on the global economy.

The minutes of the Fed’s September meeting, released on Wednesday, indicated that policy makers are prepared to forge ahead with increases and will likely hike rates again as early as December, as expected. Tightening policy comes as no surprise but it does elevate concerns about increasing borrowing costs and the impact that could have on equity prices, market participants say.

Source: MarketWatch

RESEARCH REPORT

Phillip Singapore Monthly October 2018: A new economic cold war

· The rift between the U.S. and China is not limited to trade. It has spilled over to politics.
· From a U.S. multinationals’ perspective, China has officially declared itself a competitor.

BREAKING NEWS

U.S. Treasury Secretary Steven Mnuchin withdrew from an investment conference in Riyadh as the Trump administration tacked a bit on Saudi Arabia, under increasing pressure to hold its leaders accountable for the disappearance of journalist and critic Jamal Khashoggi.

A consortium comprising Salim Group and Medco Group has agreed to give Hyflux a S$400 million equity injection, in exchange for a 60 per cent stake in the Company once it has settled all its debts.

Real-estate services company OrangeTee, is not for sale, as the management responds to talk that a rival has bought it, even as the industry undergoes consolidation.

Global Invacom Group is contemplating “an acquisition which, if approved and completed, would constitute a reverse takeover”.

Debao Property Development said it has been granted an extension of the deadline to hold its AGM for the 2017 financial year, by Nov 30.

IEV Holdings on Thursday issued a clarification and corrigendum regarding its proposed disposal of its entire 95 per cent stake in loss-making, indirectly-owned subsidiary PT IEV Gas.

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

Clients of Phillip Securities can keep updated with Country Strategy and Singapore Sector Reports by logging into: www.poems.com.sg > STOCKS > Research

Read the research report(s), available through the link(s) above, for complete information including important disclosures

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