Energy
Brent crude was down 0.21% at US$56.53 pre barrel at 2.30pm.
Forex
The ringgit was up 0.07% to 3.8050 versus the US dollar at 2.55pm.
Top foreign news
Fed takes tough stance on bond liquidity: While Wall Street frets over the ability of bond markets to absorb an approaching interest rate rise, the US Federal Reserve Board has a message for the industry: deal with it. Private and public comments by Fed officials show that they do not share Wall Street’s degree of concern about liquidity, and do not believe that capital rules are solely to blame for the bond market’s growing tendency to seize up. Effectively, regulators are telling the industry it is the responsibility of banks, funds and other market players to protect themselves. — Reuters
China’s FDI up 8% in first half: Foreign investment into China rose 8% in the first half of this year as mergers and acquisitions by overseas companies more than quadrupled in value, the commerce ministry said. Foreign direct investment (FDI), which excludes financial sectors, totalled US$68.41bil during the January-June period, the ministry said. The ministry also said that overseas direct investment from China rose 29.2% to US$56bil in January to June. It did not provide data for June alone. — AFP
Singapore 2015 inflation likely lower: Singapore’s central bank said headline and core inflation this year are likely to be at the lower end of its earlier forecasts, but it expects prices to pick up in 2016. The Monetary Authority of Singapore said core inflation is expected to be in the lower half of its 0.5-1.5% range. — Reuters
Less appetite for China A-shares: Tumbling share prices and trading suspensions have tempered any early enthusiasm for mainland Chinese equities among overseas funds, confirming the cautious approach evident in their limited exposure despite official attempts to lure them in. Three government programmes designed to help overseas investors buy Chinese stocks have had limited takeup and it will likely take a measure such as inclusion in more mainstream stock market indexes for that to change dramatically. — Reuters
US banks prepare for O&G company loans to worsen: US banks are setting aside more money to cover bad loans to energy companies after oil prices plunged over the last year, raising the possibility that deteriorating loans could start to weigh on their earnings, some analysts said. Executives from both JPMorgan Chase & Co and Wells Fargo & Co told investors last week, when posting earnings, that they were increasingly concerned about loans to oil and gas (O&G) companies. - Reuters
Top local stories
IJM sells stake in India tollway for RM407mil: IJM Corporation Bhd
is selling its 70% stake in Swarna Tollway Private Ltd in India to MAIF Investments India 3 Pte Ltd for RM407.76mil. It said the expected gain from the sale was about RM92.62mil. IJM’s 95%-owned CIDB Inventures Sdn Bhd would also sell its 30% stake in Swarna Tollway to MAIF for about RM189.02mil. - StarBiz
BASF, Petronas Chemicals score a first: Germany’s BASF and Petronas Chemicals Group Bhd will build a new world-scale production plant in Kuantan for highly reactive polyisobutene. They said in a joint statement that the plant, which will be the first of its kind in South East Asia, was expected to start production in the fourth quarter of 2017. — StarBiz
FGV confirms Emir’s contract renewed: Felda Global Ventures Holdings Bhd (FGV) has confirmed a StarBiz report that Datuk Mohd Emir Mavani Abdullah is still group president and CEO. FGV said today that Emir “is still the group president and CEO”. — StarBiz
PTP to expand capacity: Port of Tanjung Pelepas (PTP) plans to expand its capacity from the current 12.5 million twenty-foot equivalent units (TEUs) to 15 million TEUs in the next five years. - Bernama
Petron Malaysia files appeal: Petron Malaysia Refining & Marketing Bhd has filed an appeal over parts of the judgement involving sums to be paid to Konsortium Lord Saberkat Sdn Bhd. — StarBiz
Tech boost: Malaysia Technology Development Corp (MTDC), an agency under the Science, Technology and Innovation Ministry, is managing funds totalling RM600mil to help boost the adoption of technology among local companies. - Bernama
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