Breakfast briefing: Thursday, February 4

Off the hook: Cisco is not liable for directly infringing or inducing others to infringe a wireless tech patent.

Market wrap: US stocks staged a late-day rally on Wednesday as an 8% jump in oil prices lifted beaten-down energy shares and financials rebounded. The Nasdaq stayed weaker but ended well off the day's lows. - Reuters

The DJIA ended up 183.12 points, or 1.13%, to 16,336.66, the S&P 500 gained 9.5 points, or 0.5%, to 1,912.53 and the Nasdaq dropped 12.71 points, or 0.28%, to 4,504.24.

Forex summary

*The ringgit rises 1.39% to 4.1600 per US$

*It falls 0.43% to 4.6216 per euro

*Down 0.02% to 6.0744 to the pound sterling

*0.39% higher to 2.9388 per Singapore dollar

*0.19% lower to2.9857 per Aussie

*Up 1.30% to 3.5319 per 100 yen

Energy

Oil prices jumped 8% higher on Wednesday, snapping a two-day rout, after investors took advantage of a weaker US dollar and shrugged off data showing an unexpected large surge in US crude inventories to record highs. Brent futures settled up US$2.32, or 7.1%, at US$35.04 a barrel, after rising as high as US$35.11. - Reuters

Top foreign stories

ChemChina, Syngenta to move quickly on US national security review: The state-owned China National Chemical Corp, which plans to buy Swiss seeds and pesticide maker Syngenta for US$43 billion, will promptly start preparations for what could be a lengthy US national security review, as the House Agriculture Committee chairman said he would monitor the deal. - Reuters

* China, the world's largest agricultural market, is looking to secure food supply for its 1.4 billion population from the deal. 

* The deal fits into Beijing's plans to modernise agriculture over the next five years.

*  Funding for the acquisition is expected to come from a range of Chinese players, as well as HSBC and China CITIC Bank International.

Deutsche Bank must face US lawsuit over US$3.1b mortgage loss, says judge: Deutsche Bank AG must face a US lawsuit seeking to hold it liable for causing US$3.1 billion of investor losses by failing to properly monitor 10 trusts backed by toxic residential mortgages, a federal judge ruled on Wednesday. - Reuters

US services sector cooling; jobs market resilient: Activity in the vast US services sector slowed to a near two-year low in January. The Institute for Supply Management said its index of non-manufacturing activity fell to 53.5 last month, the lowest level since February 2014, from 55.8 in December. In a separate report, payrolls processor ADP said private employment increased 205,000 in January. December's private payroll gains were revised up to 267,000 from 257,000. - Reuters

Cisco to pay US$1.4b for Internet of Things firm Jasper: Cisco Systems Inc said on Wednesday it was buying Jasper Technologies Inc, a startup that connects devices like cars and medical devices to the Internet, for US$1.4 billion in cash and equity awards, its largest acquisition since 2013. - Reuters

Top local stories

Shell Refining sale reflects weak O&G sentiment: The sale of Shell Refining Company (Federation of Malaya) Bhd (SRC) at valuations close to its book value is a stark reminder of the state of affairs in the oil and gas (O&G) industry. A Malaysian party headed by a former corporate kingpin had been eyeing the company since last year with an offer that valued the entire company at about RM1.2bil, or RM4 per share. But due to banks' reluctance to provide financing the deal did't materials. Royal Dutch Shell eventually agreed to the SRC stake to a Chinese firm for RM274.98mil, or RM1.80 per share. - StarBiz

AirAsia ups stake in Think BIG Digital: AirAsia Bhd is paying RM101.5mil cash to a company controlled by its founders, Tan Sri Tony Fernandes and Datuk Kamarudin Meranun, for more direct shares in loyalty programme provider Think BIG Digital Sdn Bhd. It said by making Think BIG Digital a subsidiary, the company would be able to increase its revenue. It also plans to "significantly" grow the loyalty business and membership base, currently at about 15.6 million globally. - StarBiz

Westports posts lower earnings amid slower growth: Westports Holdings Bhd is feeling the effects of the slowdown in the economy as it wrapped up its 2015 financial year with a reduction in earnings in the final quarter. The group reported a net profit of RM132.55mil for the fourth quarter on a higher revenue of RM477mil. The group is forecasting a slower throughput growth this year partly due to an increase in overall capacity. - StarBiz

MCMC begins study on spectrum pricing: The Malaysian Communications and Multimedia Commission (MCMC) will soon conduct a study to determine the price of the 900MHz and 1,800MHz spectrum bands it had reallocated. The study is expected to be completed by August. - StarBiz

* U Mobile sees market expansion after spectrum allocation

Exports likely to end 2015 0n weak note: Malaysia’s exports will fin- ish 2015 worst off than the previous year on weak external demand and tepid growth in major markets. A survey predicts a 4.9% median rise in exports for December and 4.1% gain in imports with RM10bil in trade surplus. The Statistics Department will release the December and full-year trade data on Friday. - StarBiz

Rental rates at malls still holding up: Rental rates at some of the biggest shopping malls in the country are still holding up despite concerns about sluggish retail sales. This, analysts said, was good news for commercial real estate investment trusts. - StarBiz

SEB is now exporter of power: Sarawak Energy Bhd (SEB) is now an exporter of electricity, with PT Perusahaan Listrik Negara Persero as its first foreign customer. The company started the export of electricity to west Kalimantan, Indonesia, two weeks ago, supplying 50MW. This is expected to be gradually increased to 230MW. - StarBiz

Public Bank Q4 profit jumps 19%: Public Bank Bhd posted a 19% jump in fourth-quarter net profit to RM1.49bil, but the country's third-largest bank warned of challenges ahead. It announced a second interim divided of 32 sen per share, bringing total dividends for the year to 56 sen. For FY15 Public Bank’s net profit came in at RM5.06bil on higher revenue of RM19.18bil a year earlier. - StarBiz

MMHE posts first loss on weak oil price: Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) posted its first ever net loss of RM27.1mil in the fourth quarter on weak oil prices and as the company made more provisions for goodwill and assets while bracing for a bleak outlook for the industry. Its revenue was higher at RM721.1mil against RM508.3mil a year ago. For the full year MMHE turned in a lower net profit of RM44mil from RM130mil previously. - StarBiz

PetDag open to setting up units abroad despite sale of Vietnam ops: Petronas Dagangan Bhd remains open to any possibility of setting up more subsidiaries overseas, despite the pro- posed divestment of its liquefied petroleum gas businesses in Vietnam. “We never say no, neither do we say yes, as we are always open to any possibility,” said managing director and CEO Mohd Ibrahimnuddin Mohd Yunus. - Bernama

RCE Cap Q3 profit quadruples as revenue rises 23.9%: RCE Capital Bhd’s net profit rose more than four times to RM13 million in the third quarter, as its revenue rose 23.9%, driven primarily by higher interest income as well as a RM1.9 million net gain on disposal of an investment property. - Edge FD

Plantation players urge Govt to reconsider levy hike: Plantation firms are appealing to the Government to reconsider the sharp rise in foreign workers’ levy that was enforced on Monday, saying the move will make a dent in their profit margin. Felda Global Ventures Holdings Bhd (FGV) chief executive officer Datuk Mohd Emir Mavani Abdullah said the new levy would increase the group’s costs drastically, but did not provide figures. - Edge FD

UMLand-UEM Sunrise JV to launch project by end-2016: Nusajaya Consolidated Sdn Bhd, a 50:50 joint-venture between United Malayan Land Bhd (UMLand) and UEM Sunrise Bhd, will be launching its mixed development, The Waves, in Puteri Harbour, Johor, by year-end. The development, with gross development value exceeding RM1 billion, will begin groundworks in the fourth quarter this year, pending the approval of its amended master plan, said UMLand senior general manager Izhan Goh Abdullah. - Edge FD

AGMs/EGMs

Mega First Corporation Bhd

Time: 10am

Venue: Dewan Berjaya, Bukit Kiara Equestrian and Country Resort, Jalan Bukit Kiara, Kuala Lumpur

Mega First seeks shareholder approval for:

* a renounceable rights with warrants to raise gross proceeds of up to RM250 million

* Exemptions for Goh Nan Kioh and persons acting in concert with him from having to make a mandatory takeover offer for rest of Mega First shares and warrants not held by them.

Hibiscus Petroleum Bhd

Time: 4pm

Venue: Nexus 3, Level 3A, Connexion@Nexus, Bangsar South City, Kuala Lumpur

Hibiscus seeks shareholder nod for acquisition by its subsidiary Anasuria Hibiscus UK Ltd of a 50% interest in the Anasuria cluster from Shell UK Ltd, Shell EP Offshore Ventures Ltd and Esso Exploration and Production UK Ltd for US$52.5 million cash.