Daily Morning Note – 8 January 2019

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YOUR PHILLIP SUMMARY

U.S. stocks rallied Monday but gave back some early gains as small-caps and technology shares led the way amid the resumption of trade talks with China. The dollar fell to its lowest level since October and Treasury yields ticked higher with traders assessing the seemingly dovish remarks from Federal Reserve chairman Jerome Powell on Friday. All major U.S. equity benchmarks ended higher. The S&P 500 Index added 0.7 percent after rising as much as 1.4 percent earlier in the session on strength in retailers, automakers and clothing companies. The biggest jump among major gauges came from the small-capitalization Russell 2000 Index, which picked up 1.8 percent. Meanwhile, the Nasdaq benchmarks rose more than 1 percent with telecommunications services and semiconductor shares pacing gains, giving the Nasdaq 100 Index its first back-to-back 1 percent gains since November.

The Trump administration expressed optimism it can reach a “reasonable” trade deal with China as President Xi Jinping dispatched one of his top aides to negotiations in Beijing on a lasting truce to a conflict that has roiled financial markets. “There’s a very good chance that we’ll get a reasonable settlement that China can live with, that we can live with, and that addresses all the key issues,” Commerce Secretary Wilbur Ross told CNBC Monday. Such a deal could involve the Chinese buying more American soybeans and liquefied natural gas, while agreeing to deeper “structural reforms” on issues such as intellectual-property rights and market access, Ross said.



BREAKING NEWS

SoftBank Group Corp. has decided against taking a controlling stake in real estate company WeWork Cos., and is instead planning to make a smaller $2 billion investment, according to a person familiar with the matter.

Samsung Electronics Co Ltd on Tuesday estimated a decline in quarterly operating profit for the first time in two years, as a slowing Chinese economy erodes demand for its chips and handsets.

Nvidia Corp on Monday announced its Drive AutoPilot platform, with artificial intelligence technologies, that can enable the next level of self-driving cars by 2020, further strengthening its position in the industry.

The closing date for LTC Corp‘s exit offer has been extended to Jan 31.

A wholly owned subsidiary of Tokyo-listed Kyowa Exeo Corporation has made a voluntary conditional cash offer to acquire Catalist-listed DeClout at S$0.13 per share in cash.

Realty Centre, an office building located at 15 Enggor Street within the Central Business District, has been put up for collective sale with a reserve price of S$165 million – the first commercial en bloc this year.

Source: SGX Masnet, Bloomberg, Reuters, The Business Times, Channel NewsAsia, Phillip Securities Research

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