Breakfast briefing: Tuesday, December 5 (Update)


  • Business
  • Tuesday, 05 Dec 2017

With the debate over its bubble status still raging, the flagship cryptocurrency continued its march higher yesterday, solidifying above US$11,000 and bringing its climb this year to more than 1,000%.

MarketWatch: The Dow Jones Industrial Average reached a record high on Monday, with banks and retailers surging and technology companies falling as investors realigned their portfolios in hopes of benefiting from expected corporate tax cuts.. The DJIA rose 0.24% to end at 24,290.05 points, the S&P 500 lost 0.11% to 2,639.44 and the Nasdaq dropped 72.22 points to end at 6,775.37. - Reuters

 

Energy

 

Oil fell more than 1% on Monday on profit-taking as the market eyed signs of rising US production, though prices remained close to recent two-year highs thanks to last week’s decision by Opec and other producers to extend output cuts. Brent crude futures settled down US$1.28, or 2%, at US$62.45 a barrel. - Reuters

 

Forex summary

*The ringgit gained 0.26% to 4.0525 versus the US$

*Up 0.19% to 4.8125 versus euro

*Up 0.05% to 5.4575 per pound sterling

*Up 0.03% to 3.0120 per Singapore dollar

*Down 0.30% to 3.0976 per Aussie

*Up 0.39% to 3.6002 per 100 yen

 

Top foreign stories

 

Report: Fox prefers Disney as buyer for studio, media assets: Twenty-First Century Fox, the media company controlled by the Murdoch family, favours selling some assets to Walt Disney Co as it is a better strategic fit and presents fewer regulatory hurdles, Bloomberg reported on Monday, citing sources. The company is in talks with Disney and Comcast Corp to combine certain assets with the potential buyers, and the Murdoch family aims to make a decision by the end of the year, the report said. - Reuters

 

Bitcoin dips below US$11,000 after setting another record high: Bitcoin dipped back under US$11,000 (8,169.93 pounds) on Monday, coming off a record high just shy of US$11,800 it hit on Sunday after a surge from less than US$1,000 at the start of the year. - Reuters

 

CEO: Clariant open to M&A deals as it deals with activist: Swiss specialty chemicals group Clariant is open to making fresh acquisitions as it deals with activist investor White Tale, its biggest shareholder, chief executive Hariolf Kottmann told Swiss broadcaster SRF on Monday. - Reuters

 

Broadcom launches 11-nominee slate for Qualcomm board: Chipmaker Broadcom Ltd made its first formal move toward a hostile bid to take over Qualcomm Inc on Monday, laying out a slate of 11 nominees it wants to put on the board of the US semiconductor firm. Shareholders will be able to vote for or against the Broadcom nominees at an annual meeting on March 6. - Reuters

 

Top local stories

 

Petronas: Need for rigs for exploration down by 50% up to 2019: In a report called Petronas Activity Outlook 2018-2020, the national oil company says the need for jack-up rigs, used for exploration, has been reduced by half to about 10 rigs for the period 2018-2020, compared to 2013-2014. The lower requirements are in tandem with the marginally lower output by Petronas, which will produce 100,000 fewer barrels to 1.7 million barrels of oil equivalent per day in the next five years. - StarBiz

 

Petronas unit  holds talks with Shell operator in Africa: Petroliam Nasional Bhd’s South African unit Engen is in talks with Vivo Energy Holding BV to combine some of their African fuel retail assets, sources say. The deal would be worth as much as 3.5 billion rand (US$256mil), or about 20% of Engen’s equity value, they said. Vivo operates stations under the Royal Dutch Shell Plc brand. - Bloomberg

 

Another consortium joins fray for HSR project: IJM Corp Bhd and SUNWAY CONSTRUCTION GROUP BHD have formed a consortium with three other firms to bid for the project delivery partner job in the high- speed rail project between Kuala Lumpur and Singapore. - StarBiz

 

RAM cautious about rising govt contingent liabilities: RAM Ratings is cautious about the government’s contingent liabilities, which are estimated to rise to 18.4% of gross domestic product by 2023 due to more infrastructure projects. It said the 16.9% level in the first half of 2017 was imposing a continuous risk on its fiscal position, adding the ratio is estimated to rise to 18.4% by 2023. - StarBiz

 

Glovemakers raise prices following gas tariff hike: The Malaysian Rubber Glove Manufacturers Association said the steep rise in gas tariff would raise the price of gloves by about US$0.60 to US$1.00 for every 1,000 pieces of gloves. It said the higher costs, besides the gas tariff increase, were due to increased cost of packaging materials and chemicals and annual incremental cost relating to wages, new government policies and the weaker US dollar. - StarBiz

 

Cypark wins bid to build solar photovoltaic plant: Cypark Resources Bhd has won its bid to develop of a 30-MW large-scale solar photovoltaic plant in Empangan Terip, Negri Sembilan. - StarBiz

 

Affin Hwang: Favourable outlook for local banks: Despite subdued loan growth, banks in Malaysia are seeing favourable underlying trends that could boost their earnings, says Affin Hwang Capital Research. An improving global economic outlook and relatively stronger commodity prices could set the stage for a further rebound in banking sector earnings this year, it said. - StarBiz

 

IOI to allocate RM1b for investments: IOI Corp Bhd will allocate RM1bil for investments in its upstream businesses, says CEO Datuk Lee Yeow Chor. “This is to rebalance the company’s investment portfolios, as it had invested substantially in downstream businesses over the past few years,” he said. - Bernama

 

Al-Salam REIT buying properties from QSR for RM115m: AmanahRaya Trustees Bhd, as trustee for Al-Salam REIT, is acquiring 22 properties from several QSR Brands (M) Holdings Bhd units in an all-cash deal worth RM115mil. AmanahRaya said the proposed acquisitions are conditional on a leaseback agreement with QSR Stores Sdn Bhd and Pizza Hut Restaurants Sdn Bhd. - StarBiz

 

Sarawak to set up digital village in Samajaya: The Sarawak government will set up a digital village in Samajaya Free Industrial Zone, which will cater to high-tech industries. The digital village is expected to be operational by early 2020. - StarBiz

 

Foreign investors continue buying: MIDF Research said foreign investors acquired RM273.3mil worth of Malaysian equities in net value last week, more than three times the previous week’s RM86.6mil. - StarBiz


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