Daily Morning Note – 29 September 2021
PHILLIP SUMMARY
A global equity selloff looked set to spill into Asia Wednesday after U.S. stocks saw their worst day since May and bond yields spiked on concerns about inflation. The dollar rallied. Futures declined about 1% in Japan and Australia, and were also lower in Hong Kong. Mounting concern over the debt-ceiling impasse in Washington added to investor angst. S&P 500 contracts steadied in Asia trading after the benchmark closed 2% lower — the most since May. Technology shares fared worse than economically sensitive stocks as Treasury yields climbed. The Nasdaq 100 tumbled the most since March. The yield on 30-year Treasuries jumped almost 10 basis points. WTI crude retreated toward $74 a barrel. Brent crude pulled back from a three-year high above $80 a barrel. Gold was steady after declining.
BREAKING NEWS
SG News
Frasers Property’s wholly-owned subsidiary Frasers Property AHL has priced S$100 million in fixed-rate notes due 2028 with a coupon of 3 per cent. The notes will form a single series with the S$200 million worth of sustainability notes issued on Sept 23, which are also due 2028 and carry a coupon of 3 per cent.
Singapore’s Pavilion Energy is looking to expand into South-east Asian countries such as Vietnam and Myanmar where demand for natural gas is expected to grow, its interim chief executive said on Monday. There will be opportunities to supply natural gas to growing markets in the region that are currently dependent on domestic gas and coal, Alan Heng said in a pre-recorded speech for the annual Platts APPEC 2021 conference.
Industry veteran Koh Wee Lih, the outgoing executive director and chief executive officer of the manager of Aims Apac Reit (AA Reit), will be joining the manager of Keppel Reit as its CEO from Dec 1.
UOB on Wednesday said it will invest S$500 million to boost digital capabilities across Asean, as it aims to “more than double” digital retail customers by 2026 – to over seven million across the region.
US News
US Commerce Secretary Gina Raimondo said on Tuesday the Chinese government was preventing its domestic airlines from buying “tens of billions of dollars” of US-manufactured Boeing airplanes. Ms Raimondo said that China was not abiding by commitments to buy US goods it made in 2020 as part of a trade deal with the previous administration. “I don’t know if Boeing is here. … There’s tens of billions of dollars of planes that Chinese airlines want to buy but the Chinese government is standing in the way,” she said in a question-and-answer session after a speech in Washington.
Airbus SE is in talks with China’s aviation regulator about certifying its A220 narrowbody plane that has received strong interest from domestic airlines, the head of Airbus’ China business said on Tuesday. Airbus China CEO George Xu said that the A220 would help airlines fill the gap between regional aircraft and larger narrowbodies and could be of particular use in the less developed western part of China.
US car manufacturer Ford said on Monday it plans to invest US$11.4 billion in electric vehicle production, building four new plants that will create 11,000 new jobs by 2025. Together with its South Korean partner SK Innovation, Ford will build the factories in Kentucky and Tennessee, the automaker said in a statement.
Lawmakers scrambled on Tuesday to break a deadlock on Capitol Hill over the prospect of a first-ever US debt default that would plunge the economy into a death spiral, alarming investors as the cliff edge draws closer. The government is likely to run out of cash on October 18, Treasury Secretary Janet Yellen warned, unless Congress raises the federal borrowing cap.
Amazon revealed a camera-equipped home robot on Tuesday that users can deploy to patrol their houses, a device that one of the project’s developers said was making science fiction a reality. The tech giant cheered the “Astro” robot as a breakthrough for security and convenience, but digital watchdogs raised concerns for potential risks to people’s most private moments at home.
Alibaba Group Holding added rival Tencent Holdings’ payment system to some of its apps, further widening cracks in the Internet giants’ walled-off ecosystems. Services including food-delivery app Ele.me, online ticketing platform Damai, e-book reader Shuqi and Kaola, a site for imported goods, now offer WeChat Pay alongside existing payment options like Ant Group’s Alipay, according to checks by Bloomberg News on Tuesday.
Google dominates Australia’s online advertising market to the point of harming publishers, advertisers and ultimately consumers, the country’s antitrust regulator said, calling for new rules to rein in the Big Tech giant. A report by the Australian Competition and Consumer Commission (ACCC), published on Tuesday, said more than 90 per cent of clicks on advertisements traded through the Australian “ad tech” supply chain passed through at least one Google service in 2020.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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