Breakfast briefing: Monday, May 15 (Update)

  • Business
  • Monday, 15 May 2017


MarketWatch: As the strongest earnings season since 2011 draws to a close, and with the S&P 500 and Nasdaq Composite hovering near record highs, the biggest concern for some market analysts is the lack of concern. - Reuters

Forex summary

*The ringgit gained 0.22% to 4.3363 versus the US$

*It lost 0.40% to 4.7388 versus euro

*Down 0.15% to 5.5888 per pound sterling

*Down 0.08% to 3.0893 per Singapore dollar

*Up 0.21% to 3.2044 per Aussie

*0.21% higher to 3.8254 per 100 yen

Top foreign stories

Western Digital seeks arbitration in row over Toshiba's US$18b chip sale: Western Digital Corp has sought international arbitration to stop partner Toshiba Corp from selling its chips arm without its consent, potentially derailing a much-needed capital injection for the Japanese conglomerate.
Western Digital is a long-standing joint venture partner and runs Toshiba's main semiconductor plant in Japan. - Reuters

China pledges US$124b for new Silk Road as champion of globalisation: Chinese President Xi Jinping pledged US$124 billion on Sunday for his new Silk Road plan to forge a path of peace, inclusiveness and free trade, and called for the abandonment of old models based on rivalry and diplomatic power games. - Reuters

Australia's Fairfax Media gets revised US$2b offer from TPG-led group: Australian newspaper publisher Fairfax Media Ltd on Monday said it has received a revised A$2.76 billion (US$2.04 billion) cash offer led by US private equity firm TPG Capital Management for all of the company. - Reuters

Spotify, valued at US$13b, to launch direct listing on NYSE: Music streaming service Spotify, most recently valued at US$13 billion, will be the first major company to carry out a direct listing on the New York Stock Exchange when it goes public later this year or early next year, say sources. - Reuters

Businesses brace for Monday as ransomware threat lingers: Technical staff scrambled on Sunday to patch computers and restore infected ones, amid fears that the ransomware worm that stopped car factories, hospitals, shops and schools could wreak fresh havoc on Monday when employees log back on. The spread of the virus dubbed WannaCry - "ransomware" which locked up more than 100,000 computers - had slowed, cybersecurity experts said, but they warned that the respite may be brief. - Reuters

Top local stories

Leasing option for Malaysia Airlines: Malaysia Airlines Bhd (MAS) will lease a dozen second-hand wide-body aircraft from now till the end of 2019 while waiting for new aircraft deliveries, as it does not have enough capacity to serve nine key routes across Asia. Chief executive officer Peter Bellew said a decision on the type of aircraft will be made by the end of June. - StarBiz

AirAsia to launch new Chinese low cost carrier: AirAsia Bhd signed a joint venture agreement with China on Sunday to establish a low cost carrier, with a base in the east-central city of Zhengzhou. AirAsia (China) is a joint venture between AirAsia, Everbright Group and Henan Government Working Group. - Reuters

Shot in the arm for MK Land: A land sale has given MK LAND HOLDINGS BHD “a shot in the arm of sorts” amid concerns over its prospects due to expectations of weaker earnings in the absence of meaningful new launches. The company stands to gain RM32.14mil from the sale of nine parcels of leasehold land measuring about 195.84 acres in Kamunting, Perak, for RM72mil. - StarBiz

A quarter of Spring Gallery shares sold at 58 sen each: A block of 33.7 million shares, representing a 23% stake in tightly held Spring Gallery Bhd, changed hands at 58 sen per share last Friday. The deal was valued at RM19.55mil, or a 25% discount to Spring Gallery’s closing price of 78 sen. - StarBiz

MBSB-AFB merger on track, valuation being negotiated: The merger and acquisition talks between MALAYSIA BUILDING SOCIETY BHD (MBSB) and Asian Finance Bank Bhd (AFB) are on track with the only concern being valuation. MBSB president and CEO Datuk Ahmad Zaini Othman said the non-bank lender was in the midst of formulating reports and negotiating the valuations for the merger. - StarBiz

Rough seas ahead for Sarawak shipping: Sarawak shipping companies, already facing prolonged depressed freight rates, are in for tougher times with the scrapping of the cabotage policy. The policy change means that foreign cargo ships will be allowed to call directly at ports in Sarawak, Sabah and Labuan, and to transport cargo from Peninsular Malaysia to the east Malaysian states and Labuan. - StarBiz

Titijaya ties up with CREC in RM575mil Sabah property project: Property developer Titijaya Land Bhd has formalised a collaboration with CREC Development (M) Sdn Bhd for a RM575mil property project known as The Shore in Kota Kinabalu. Both parties signed a memorandum of understanding, witnessed by Prime Minister Datuk Seri Najib Tun Razak, in Beijing. - StarBiz

Bursa, Shanghai Stock Exchange ink MoU to further strengthen cooperation: BURSA MALAYSIA BHD has signed a memorandum of understanding (MoU) with the Shanghai Stock Exchange to explore potential ways for the two exchanges to improve their visibility and accessibility to market participants in Ma- laysia and China. - Bernama

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