Market wrap: Wall Street ended sharply lower on Thursday as weak earnings reports from media companies stirred fears that more viewers are ditching cable TV, dragging the sector to its worst two-day loss since the financial crisis. The selloff was compounded by nervousness ahead of key jobs data on Friday that could provide clues about the timing of the first Federal Reserve interest rate hike in almost a decade. - Reuters
The DJIA fell 0.69% to end at 17,419.75 and the S&P 500 lost 0.78% to 2,083.56. The Nasdaq dropped 1.62% to 5,056.44
Forex summary
*The local currency lost 0.09% to 3.9160 per US$
*It fell 0.47% to 4.2795 per euro
*Up 0.56% to 6.0759 to the pound sterling
*0.19% down to 2.8279 per Singapore dollar
*0.36% lower to 2.8760 per Aussie
*Down 0.12% to 3.1406 per 100 yen
Energy
Oil set multi-month lows on Thursday as investors and traders sought clues about the market's next bottom after a large drop in US crude inventories failed to boost prices. A bigger-than-expected build in US gasoline stockpiles last week proved more important to investors than crude storage numbers that came in three times below forecast on Wednesday. Brent LCOc1, the global oil benchmark, settled down 7 cents at US$49.52 a barrel, after setting a six-month low at US$48.88. - Reuters
Top foreign news
Bank of England signals early 2016 interest rate hike: The Bank of England pointed to a possible rise in interest rates early next year as just one of its top policymakers backed an immediate move and it said the strength of sterling meant inflation would only pick up slowly. - Reuters
Hollande and Tsipras want Greek bailout agreed in late August: A new bailout for Athens should be agreed by late August, Greek Prime Minister Alexis Tsipras and French President Francois Hollande said on Thursday. Greece is in negotiations with the European Union and International Monetary Fund for as much as 86 billion euros (US$94 billion) in fresh loans to stave off financial ruin and economic collapse. - Reuters
Ackman takes US$5.5bil stake in Cadbury owner Mondelez: Activist investor William Ackman has built a stake worth about US$5.5 billion in Mondelez International Inc, the maker of Cadbury chocolate and Oreo cookies, in what is seen as an attempt to push the company to boost earnings or sell itself. - Reuters
BoJ seen on hold: The Bank of Japan is expected on Friday to maintain its massive monetary stimulus programme and declare confidence in hitting its ambitious inflation target - even though the economy is expected to have contracted in the second quarter. The gross domestic product data is due out on Aug. 17, but given weakness in exports and an unexpected decline in household spending, among other indicators, analysts fear the world's third-largest economy contracted in April through June. - Reuters
China funds hold US$161bil in 'ammunition' to re-enter stock market: Close to 300 China funds that oversee more than one trillion yuan (US$161.04 billion) are sitting on the sidelines with "ammunition" to enter the stock markets at any time, the Shanghai Securities News reported on Friday, citing its own calculations. - Reuters
Alibaba inks exclusive tie-ups with global brands to sell in China: Alibaba Group Holding Ltd has signed exclusive partnerships with more than 20 apparel brands including Zara and Timberland, the Chinese e-commerce giant said on Thursday, the latest step to woo big international brands as it competes with rivals such as JD.com Inc. Alibaba said its fast-growing online marketplace Tmall.com will become the only third-party online sales platform for the apparel brands in China. The company did not disclose details on financial terms of the agreements. - Reuters
Top local stories
Market feels the heat: The ringgit’s exchange rate dropped to 3.91 against the US dollar, which is a new 17-year low, as the sell-off in the stock market intensified amid weakening growth prospects continuing to weigh down on investor sentiment. A drop in the price of Brent crude oil, the benchmark for Malaysian petroleum products, back to below US$50 a barrel and falling prices of crude palm oil (CPO) to near RM2,000 a tonne added to the uncertainties. - StarBiz
Century gets letter of demand: Century Logistics Holdings Bhd unit has been served with a RM21.6mil letter of demand from Nestle Products Sdn Bhd for purported losses and damages. The company said the demand from Nestle was “baseless and unsubstantiated” and that Century Total Logistics Sdn Bhd “intends to counterclaim against Nestle for, but not limited to, damages, expenses incurred, loss of profit and outstanding amounts." - StarBiz
Higher tariff boost for Westports and NCB: Westports Holdings Bhd
and NCB Holdings Bhd, the two main container terminals in Port Klang, are likely to see gradual benefits from the newly announced container tariff hike due to the lock-in nature of terminal handling fee agreements with most of their customers. It is understood that the tariff hike can only be incorporated when the agreements expire. The agreements’ life span varies between two months and three years. - StarBiz
IHH: India's hospital deal in talks stage: IHH Healthcare Bhd is in discussions with certain shareholders of the India-based Ravindranath GE Medical Associates Pte Ltd, the holding company of Global Hospitals Group for a potential acquisition. IHH said it was unable to comment, or provide guidance, at this stage, whether such acquisition would be completed, or not. - Bernama
Hibiscus to buy oilfield stake for RM199mil: Hibiscus Petroleum Bhd has entered into a sale and purchase agreement to acquire a 50% stake in the producing fields of the Anasuria Cluster oil and gas fields, in the North Sea, for US$52.5mil (RM199.1mil). The acquisition includes a floating production storage and offloading facility. - StarBiz
BHIC Q2 net income retreats 18%: Boustead Heavy Industries Corporation Bhd (BHIC) recorded an 18% decline in net profit for the second quarter to RM9.2mil mainly due to higher losses posted by its associates Boustead Naval Shipyard as well foreign exchange rate fluctuations. The company said that the lower results were also due to provision for foreseeable loss for the restoration of KD PERANTAU and no new maintenance, repair and overhaul (MRO) activities undertaken for the current quarter. Its revenue for the quarter rose 13% to RM75.15mil. - StarBiz
MBSB Q2 profit 63% down to RM85.6mil: Malaysia Building Society Bhd (MBSB) recorded a 63.3% drop in net profit to RM85.56mil in the second quarter. The non- bank lender attributed the decline to impairment losses on loans, advances and financing. The group said the losses were a continuation of the two-year impairment programme it initiated in the fourth quarter of 2014. - StarBiz
EPF to keep investing in foreign properties: The Employees Provident Fund (EPF) will continue to invest in overseas properties in Japan, UK, France and Germany because it has to look for a steady dividend stream for EPF contributors, which number about 14 million. - StarBiz
DNeX shareholders okay proposals: Shareholders of e-commerce provider Dagang Nexchange Bhd (DNeX) have approved the company's proposed elective capital reduction and repayment exercise, which will see the company get full control of a key subsidiary, Dagang Net Technologies Sdn Bhd. - StarBiz
Teh honoured with William Seidman Lifetime award: Public Bank founder and chairman Tan Sri Teh Hong Piow has been honoured with the prestigious William “Bill” Seidman Lifetime Achievement in Financial Service Industry 2015 award by The Asian Banker. The award was to recognise Teh's achievements in developing Public Bank and the Public Bank Group into a leading financial institution, said Asian Banker chairman and CEO Emmanuel Daniel. - StarBiz
KLAS, Raya Airways bag cargo and logistics job for LCCT: KL Airport Services Sdn Bhd (KLAS), a unit of DRB-Hicom Bhd, and Raya Airways Sdn Bhd are learnt to have been awarded contracts to run the cargo and logistics operations at the former low-cost carrier terminal (LCCT) in Sepang, said a source close to the matter. The jobs are for the two firms to facilitate airport operator Malaysia Airports Holdings Bhd’s (MAHB) plans to turn the LCCT into a major cargo and logistics hub for Malaysia. - digitaledge
Tanah Makmur inks deals to build biogas plant: Tanah Makmur Bhd unit Sri Jelutung Palm Oil Mill Sdn Bhd has inked three separate agreements to build a biogas plant in Pahang, which will generate electricity to be sold to Tenaga Nasional Bhd (TNB), for an estimated RM11 million. The three agreements include a shareholders’ agreement, a build, own, operate and transfer accord, and a land lease agreement, according to Tanah Makmur’s statement. - digitaledge
‘Lazy’ El Nino seen driving palm oil lower: Palm oil production in the world’s top growers will climb more than forecast to a record this year, sending prices to a 6 1⁄2-year low by the end of September, according to Dorab Mistry, director at Godrej Industries Ltd. The increase in output in Malaysia and Indonesia, which together produce 86% of the global oil supply, will come as the El Nino weather pattern fails to bite, according to Mistry. - digitaledge
Events calendar
Bank of Japan announces interest rate decision (2350 GMT).
UK's National Statistics releases trade balance data for June ()830 GMT).
The US Department of Labor releases the unemployment rate for July (1230 GMT).
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