Daily Morning Note – 28 September 2021

PHILLIP SUMMARY

Asia stocks are set to open mixed after a jump in Treasury yields weighed on U.S. equities and oil extended a rally spurred by supply concerns. Futures fell for Japan and Australia, while Hong Kong contracts rose. U.S. futures were little changed. Investors rotated out of growth stocks as the benchmark 10-year U.S. yield briefly topped 1.5% — a level not seen since June. The tech-heavy Nasdaq 100 underperformed. The S&P 500 dipped, though economically sensitive companies advanced — like energy, financial and smaller firms.


BREAKING NEWS

SG News

Seafood restaurant operator Jumbo Group on Monday said it has opened a new Tsui Wah outlet at Jewel Changi Airport. The new outlet, which occupies a total floor area of close to 3,240 square feet, has a maximum seating capacity of 123 seats for indoor dining. However, with current social distancing measures, the available seating is capped at 88 seats.

Singapore’s central bank is not widely expected to tighten its monetary policy next month, but the chances of an earlier policy normalisation are said to be rising. The worsening Covid-19 pandemic had in March last year led the Monetary Authority of Singapore (MAS) to announce a “double-tap easing” – tweaking both the slope and the mid-point of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.

Marketnode, the digital asset joint venture between Singapore Exchange (SGX) and Temasek, on Monday announced its partnership with 10 global financial institutions ahead of its upcoming product launches. The partner institutions are Barclays, BNP Paribas, BNY Mellon, Citi, Deutsche Bank, HSBC, Orient Securities International, Standard Chartered, Societe Generale and UOB. These early adopters will work with Marketnode to accelerate usage of its platform, provide market input towards its product development, co-create distributed ledger technology (DLT) solutions and jointly explore product expansion beyond fixed income.


US News

Facebook said on Monday that it has paused development of an “Instagram Kids” service that would be tailored for children aged 13 or younger, amid questions about the app’s effect on young people’s mental health. The announcement comes ahead of a congressional hearing this week about internal research conducted by Facebook, and reported in The Wall Street Journal (WSJ), that showed the harmful mental health effects Instagram was having on teenage girls.

US pharmaceutical company Pfizer said on Monday it had begun a clinical trial to test an influenza vaccine designed with the same mRNA technology behind its successful Covid-19 shot. The idea is to improve on the current generation of flu vaccines that have an efficacy of 40-60 per cent against a disease that can cause up to 650,000 deaths a year.

Google hit back in court against the European Union (EU) on Monday as it appealed against a record fine levied by the bloc for monopolistic practices with its Android operating system on mobile devices. The 4.3 billion euro (S$6.77 billion) penalty, imposed by the European Commission in 2018, was the biggest handed down on the American search engine juggernaut.

Ford Motor Co and its Korean battery partner SK Innovation will invest $11.4 billion to build an electric F-150 assembly plant, and three battery plants in the United States, accelerating the No. 2 U.S. automaker’s push into electric vehicles. Ford also said on Monday it now expects to have 40% to 50% of its global vehicle volume to be all-electric by 2030, up from its prior forecast of 40%

The higher prices and hiring difficulties seen as the U.S. economy reopens from the pandemic could prove “more enduring than anticipated,” and the Federal Reserve would move against unchecked inflation if needed, Fed Chair Jerome Powell said in remarks prepared for delivery to the Senate Banking Committee on Tuesday.


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

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