Daily Morning Note – 27 Aug 2020

PHILLIP SUMMARY

The United States’s recovery from the coronavirus economic downturn is “highly uncertain” and many businesses will continue to struggle, a top Federal Reserve official said on Wednesday. Emergency programmes rolled out by the government and Fed helped cushion the blow from the Covid-19 business shutdowns, but “the economy is still far from back to normal,” central bank governor Michelle Bowman said.

“The future course and timing of the recovery is still highly uncertain, and its pace and intensity are likely to vary across areas of the country,” Ms Bowman said in a speech to Kansas bankers.

She noted that the initial wave of job losses were “heavily concentrated among the most financially vulnerable,” including low-wage workers and minority groups.

BREAKING NEWS

Yunnan Energy recorded a loss of HK$7.07 million (S$1.25 million) for the six months ended June 30, more than halving from a loss of HK$15.1 million in the year-ago period, it said in a statement on Wednesday after the market close.

The Straits Trading Company is acquiring a freehold business park in the United Kingdom for a total cash consideration of £76.7 million (S$137.9 million), it announced in a Singapore Exchange filing after market close on Wednesday. The acquisition, made via its subsidiary Straits Real Estate, is of Bourne Business Park in Addlestone, England.

Tan Chong International reported a loss of HK$75.3 million (S$13.3 million) for the first half of its financial year ended June 30, as Covid-19 measures curbed or halted its business activities, the firm said in a statement on Wednesday after the market close. This was a sharp reversal from the HK$97.1 million profit attributable to shareholders in the first half of the previous financial year. The firm did not report separate results for its second quarter.

Fintech firm Silverlake Axis saw net profit fall 12 per cent to RM59.1 million (S$19.4 million) for the fourth quarter ended June 30, as the Covid-19 pandemic hampered the timely closing of deals, the firm said in its results release on Tuesday after the market closed.

Facebook on Wednesday said a mobile software update about to be released by Apple will slash revenue for developers relying on its in-app ad network. Changes coming to iOS software powering iPhones and iPads includes requiring apps to ask permission of users to collect and share device-identifying data.

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

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