US: July consumer prices jump 5.4%, but core inflation rises less than expected. Prices that Americans pay for everyday goods and services rose in July as pent-up demand for travel and restaurants kept inflation hot, but jumped about as much as economists had expected. The Labor Department reported that its consumer price index rose 5.4% in July from a year earlier, in line with June’s figure and matching the largest jump since Aug 2008. The government said CPI increased 0.5% on a MoM basis, matching a consensus forecast from economists surveyed by Dow Jones. So-called core inflation, which excludes energy and food, rose by 0.3% last month, shy of a forecasted 0.4% increase and well below June’s rise of 0.9%. (CNBC)
US: Fed should announce bond taper in Sept, begin it in Oct, says Dallas Fed President Kaplan. Dallas Fed President Robert Kaplan said that the central bank should begin to taper its monthly purchases of Treasury bonds and mortgage-backed securities in Oct. His view that the central bank ought to begin cutting back in two months is perhaps the most ambitious from a Fed president to date. Other high-ranking Fed officials, including Chairman Jerome Powell, have not yet given a forecast for when they want to pull back on the economic stimulus. (CNBC)
US: July budget deficit hits USD302bn as spending remains high. The US government posted a July budget deficit of USD302bn, a record for that month, as COVID-19 relief spending stayed elevated while receipts returned to a more normal pace after a delayed July tax deadline last year. The Treasury Department said the July deficit compared to a year-earlier USD63bn budget gap. Receipts for the month totalled USD262bn, down 54% percent from July 2020, while outlays were USD564bn, down 10% from the year-earlier period. (Reuters)
EU: Germany consumer prices rise at fastest pace in more than 27 years. Germany consumer prices grew at the fastest pace in more than 27 years in July largely due to the low base of comparison, final data published by Destatis revealed. Consumer prices increased 3.8% on a yearly basis in July, faster than the 2.3% rise seen in June. This was the biggest growth since Dec 1993, when inflation was 4.3%. (RTT)
UK: Housing market comes off boil, still hot – RICS. Britain’s redhot housing market cooled a little last month in July as the partial removal of a temporary cut to property purchase taxes caused a slight drop in demand from new buyers, a survey showed. The Royal Institution of Chartered Surveyors (RICS) said its monthly gauge of house prices eased in July to +79 from +82 in June, which had been highest level since the late 1980s. A Reuters poll of economists had pointed to a reading of +76. (Reuters)
China: July bank loans fall to 9-mth low, modest policy easing expected. China’s new bank loans fell more than expected in July to their lowest in nine months while broad credit growth hit a 17-month low, adding to market expectations that modest policy easing may be needed to underpin the country’s economic recovery. The world’s second-largest economy has largely rebounded from massive disruptions caused by the pandemic last year, but recent new outbreaks of the Delta variants and severe flooding threaten to slow its recovery. (Reuters)
South Korea: Jobless rate falls in July. South Korea's unemployment rate declined in July, data from Statistics Korea showed. The jobless rate fell to a seasonally adjusted 3.3% in July from 3.7% in June. In the same month last year, the unemployment rate was 4.1%. On an unadjusted basis, the unemployment rate decreased to 3.2% in July from 3.8% in the previous month. The number of unemployed decreased to 920m in July from 1.093m in the preceding month. Compared to a year ago, the figure rose by 218,000 persons. The number of employed persons increased by 542,000 YoY to 27.648m in July. (RTT)
Singapore: Raises 2021 GDP Estimate, Now Expects 6%-7% Growth. Singapore’s economy is set to expand at a faster clip than the government previously expected as the city-state shakes off an uptick in virus cases and looks to re-open more sectors through yearend. Singapore revised its forecast for annual economic growth to 6%-7%, the Ministry of Trade & Industry said as it reported final second-quarter data. In its initial 2Q GDP report last month, the agency had left the annual forecast unchanged at 4%-6%. Among nine economists surveyed by Bloomberg who updated their Singapore GDP forecasts this month, six saw growth exceeding 6%. (Bloomberg)
Minetech: Bags RM11m road construction job. Minetech Resources has been awarded a contract to undertake the design and construction works of an elevated road in Selangor valued at approximately RM11.3m. Minetech has accepted the letter of award from Wangsa Keringat Development SB. (The Edge)
Ta Win: Secures maiden order from US’ Aptiv. Ta Win has bagged a contract from US-based Aptiv for the supply of cables and automotive components for local automobile models in Malaysia. Ta Win would be supplying 13 types of components. The contract is effective from July 1st, for six-months with an estimated quantity of up to 10,000 km per month. (NST)
JF Technology: Inks sales distribution deal with ISC Co to market testing solutions in Malaysia, China and Asean. JF Technology (JF Tech) signed a sales and distribution agreement to market test contacting solution products developed by South Korea-based ISC Co Ltd in China, Malaysia and Asean. The deal also entails JF Tech becoming OEM of spring probe test sockets under JF Tech's own brand name, integrating its own test socket housing with ISC's spring probe pins beginning in 3Q. (NST)
Yinson: Sumitomo partnership secures USD670m syndicated loan for FPSO Anna Nery in Brazil. Yinson and Sumitomo Corp have entered into a USD670m syndicated loan facility for the FPSO Anna Nery project, a FPSO vessel for the Marlim revitalisation project in Brazil. The agreement also included ING, Natixis and Standard Chartered Bank as underwriting banks. (The Edge)
Resevoir Link: Gets nod to buy Founder Energy, diversify into RE. Reservoir Link Energy has received its shareholders' approval to acquire a 51% stake in Founder Energy SB for RM21.2m. It also received its shareholders' nod for the diversification into renewable energy related businesses. ED Thien Chiet Chai said the acquisition was a big step for Reservoir Link towards the vision to be a true energy company. (NST)
See Hup: Seeks to diversify into construction contracts business. See Hup Consolidated has proposed to diversify into construction contracts services. The planned diversification is part of its long-term strategy to improve its financial performance by expanding its existing construction business and reducing its reliance on its existing core business. (The Edge)
AT Systemization: Calls off planned takeover of Asdion. AT Systematization has called off its conditional voluntary takeover offer (VGO) of Asdion Bhd. It said the offer will be withdrawn as Asdion has secured approval from its shareholders at an EGM for both its proposed debt settlement and placement exercises. (The Edge)
Luxchem: 2Q net profit more than doubles on strong domestic demand. Luxchem’s net profit for 2QFY21 surged 119% YoY to RM16.57m, on strong domestic demand for its products. Quarterly revenue grew 53.68% YoY to RM215.6m, mainly on the back of strong showing by its trading segment. Luxchem declared an interim dividend of 0.8 sen per share. (The Edge)
The FBM KLCI might open within a tight range today as Wall Street stocks were mixed, US government debt rallied and the dollar sank, after a report showed American inflation remained elevated last month. The blue-chip S&P 500 closed 0.3% higher in New York, notching a new high and coming within 1% of doubling its value from its March 2020 lows, when pandemic lockdowns threw global financial markets into chaos. The technology focused Nasdaq Composite; more susceptible to strong inflation pushing up interest rates, fell 0.2%. However, the US Treasury market took its cue from the fact that while inflation pressures remain elevated, they haven’t continued to increase, after a report showed the year-on-year rate of consumer price growth held steady at 5.4% last month, matching the 13- year high reached in June. Meanwhile, Europe’s regional Stoxx 600 index closed up 0.4%, hitting another peak as sentiment was boosted by strong earnings in an already blockbuster corporate reporting season. The UK’s FTSE 100 gained 0.8%.
Back home, the FBM KLCI extended its gain and ended the day 0.5% higher, following US lawmakers' nod on Tuesday to a trillion dollar boost to the US economy, which helped to temper worries about the rapid spread of the Delta variant in many Asian countries. This led to a second consecutive trading-day gain in the benchmark index, which finished 7.71 points higher at 1,504.44. Regional stocks ended mixed with South Korea’s KOSPI fell 0.7% to 3,220.62, while Shanghai Composite Index gained 0.1% to 3,532.62. Elsewhere, Japan’s Nikkei rose 0.65% to 28,070.51, while Hong Kong’s Hang Seng Index ended 0.2% higher to 26,660.16
Source: PublicInvest Research - 12 Aug 2021
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LUXCHEMCreated by PublicInvest | Mar 21, 2024