Daily Morning Note – 8 July 2021

PHILLIP SUMMARY

Asian stocks are poised for a steady open Thursday, following gains for U.S. shares and Treasuries as the Federal Reserve minutes showed policy makers still awaiting more evidence of economic strength to determine a timeline for tapering asset purchases.

Futures pointed slightly lower in Japan and higher in Australia, and were little changed in Hong Kong. U.S. contracts were stable after the S&P 500 and Nasdaq Composite both closed at all-time highs. Ten-year U.S. Treasury yields fell for a seventh trading day, dipping briefly below 1.3% for the first time since February, as expectations for an inflationary rebound continued to fade.


BREAKING NEWS

SG News

CapitaLand has launched a second logistics private fund in India worth S$400 million for expansion in the country’s logistics sector, the property giant said on Wednesday. The CapitaLand India Logistics Fund II will invest in the development of key warehousing and manufacturing hubs in six major cities including Ahmedabad, Bangalore, Chennai, Mumbai, the National Capital Region and Pune, and in emerging markets such as Coimbatore, Guwahati, Jaipur, Kolkata and Lucknow.

The manager of Prime US Reit announced on Wednesday that it will issue new units under its distribution reinvestment plan at 83.2 US cents per unit. It had earlier made an application for a distribution reinvestment plan for the cumulative distribution of 3.42 cents per unit in the real estate investment trust (Reit), for the period from Jan 1 to July 5, 2021. The issue price represents a 0.5 per cent discount to the adjusted volume-weighted average trading price per unit for all trades on the Singapore Exchange for each of the 10 market days prior to and ending on July 5, 2021.

Keppel Infrastructure Trust (KIT) has entered into a conditional agreement to acquire the remaining 30 per cent stake it does not already own in SingSpring Desalination Plant from Hyflux for S$12 million, announced KIT’s trustee-manager on Wednesday. The desalination plant in Tuas is Singapore’s first large-scale seawater desalination plant and is capable of supplying up to 136,380 cubic metres of desalinated potable water per day. It began commercial operations in December 2005, and utilises cost and energy-efficient reverse osmosis technology.


US News

Huawei Technologies says it was treated unfairly when the US government labelled it a security threat, yet China’s largest technology company is seeking redress from the American jury system in a major patent fight with Verizon Communications. A trial is set to being Wednesday in Marshall, Texas, in Huawei’s case against Verizon over claims it is using Huawei’s patented networking technology without a licence. It’s the first of two scheduled this year over lawsuits Huawei filed last year against Verizon, the biggest US mobile carrier.

Former President Donald Trump said Wednesday he is suing Facebook, Twitter and Google as well as their respective CEOs Mark Zuckerberg, Jack Dorsey and Sundar Pichai. Trump, who has a history of threatening legal action but not always following through made the announcement at his golf club in Bedminster, New Jersey, at 11 a.m. ET alongside two leaders from America First Policy Institute, the pro-Trump nonprofit group that is supporting the lawsuits. The three related lawsuits, filed in federal court in Florida, allege the tech giants have violated plaintiffs’ First Amendments rights.

The highly transmissible delta variant is now the dominant coronavirus strain in the United States, surpassing the alpha variant first found in the U.K., according to Covid-19 modeling data released by the Centers for Disease Control and Prevention. Delta, the variant first found in India that’s now in at least 104 countries, represented 51.7% of new Covid cases in the U.S. over the two weeks ended July 3, according to recently updates estimates by CDC Meanwhile, the proportion of new cases caused by alpha was just 28.7% over the same time period, according to the U.S. agency.


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

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