Morning Coffee News Asia 09.01.2015

Morning Coffee News (Asia)
09 January 2015
Top news* 1MDB woes exacerbate bank cash squeeze in Malaysia
Malaysia’s banks are charging one another the most to borrow in six years as the oilprice slump, a falling ringgit and default concerns dent confidence.
The three-month Kuala Lumpur interbank offered rate, a gauge of funding availability,
rose to 3.87 percent in December, 62 basis points more than Bank Negara Malaysia’s
benchmark rate and the biggest gap since January 2009, data compiled by Bloomberg
show. The premium was 61 yesterday, compared with an average of 22 for the past
decade. The ringgit slid 6.2 percent against the dollar last quarter as crude oil plunged
42 percent.
A cash squeeze in Southeast Asia will weigh on lending and make banks vulnerable to
global financial turmoil as a U.S. rate increase approaches, according to a December
report from HSBC Holdings Plc. The impact of the oil decline on Malaysia, concern
over state investment company 1Malaysia Development Bhd.’s debt and a possible
downgrade in the sovereign rating aren’t helping, according to Malayan Banking Bhd.
“To compensate for the depreciation in the ringgit, banks need to lend at a higher
rate,” Saktiandi Supaat, Singapore-based head of foreign-exchange research at Malayan Banking, the nation’s largest lender, said by phone Jan. 6. “This suggests liquidity could remain tight in the current stress period and may be negative for bond markets.”
Opposition lawmakers Rafizi Ramli, Tony Pua and Lim Guan Eng have expressed
concern about 1MDB’s debt. The Edge Financial Daily said this week the fund had
missed a 2 billion ringgit ($560 million) loan repayment on Dec. 31. It has been given
until Jan. 30 to settle the debt, which was first due on Nov. 30, the article said, citing
people it didn’t identify.
The ringgit is the worst performing currency in Southeast Asia in the past six months,
having lost 11 percent. It fell to a five-year low this week on concern a decline in oil
revenue will make it harder for the government to achieve its fiscal deficit target and
will reduce the current-account surplus. The nation is Asia’s only major crude exporter.
Global funds cut holdings of government and corporate debt in November by 5.8
percent, the most since September 2011, to 236.5 billion ringgit, according to the
central bank. They sold a net 3 billion ringgit of stocks last month, exchange data
show. Investors held 44 percent of conventional Malaysian government bonds in
November, compared with 39 percent in Indonesia and 18 percent in Thailand.
Market News APAC
China’s factory-gate prices extended a record stretch of declines, with the sharpest
Indices Asia
Nikkei225
KOS P I Comp
S &P /AS X200
Ha ng S eng
S ha ngha i Comp.
S TI S inga pore
KLCI Ma la ys ia
J CI Indones ia *
S E T Tha ila nd*
S ens ex India*
*a s of yes terda y
Indices US A
DJ IA
S &P 500
Na s da q100
La s t
17,252.34
1,925.40
5,445.70
23,977.96
3,269.97
3,359.14
1,736.00
5,235.12
1,521.62
27,274.71
Cha nge
0.50%
1.09%
1.19%
1.25%
-3.08%
1.84%
1.57%
0.54%
1.39%
1.36%
Y TD
-0.81%
0.12%
0.49%
0.98%
1.82%
-0.60%
-1.88%
-0.29%
1.60%
-0.82%
Y es terda y
17,907.87
2,062.14
4,240.55
Cha nge
1.84%
1.79%
1.94%
Y TD
0.48%
0.16%
0.10%
Indices E urope
E uroS toxx50
S MI
DAX
F TS E 100
CAC40
Y es terda y
3,135.08
9,139.69
9,837.61
6,569.96
4,260.19
Cha nge
3.58%
2.68%
3.36%
2.34%
3.59%
Y TD
-0.36%
1.74%
0.33%
0.06%
-0.29%
Currencies
US D/CHF
E UR /US D
GB P /US D
US D/J P Y
AUD/US D
NZD/US D
US D/KR W
US D/HKD
US D/S GD
US D/THB
US D/MY R
US D/IDR
US D/CNY
La s t
1.0178
1.1801
1.5091
119.58
0.8133
0.7826
1,093.30
7.7546
1.3366
32.85
3.5588
12,644.50
6.2107
Cha nge
-0.06%
0.07%
0.01%
-0.07%
0.12%
0.01%
-0.33%
0.00%
-0.01%
-0.06%
-0.22%
-0.24%
-0.05%
Y TD
-2.37%
-2.52%
-3.11%
-0.02%
-0.72%
0.30%
-0.20%
0.01%
-0.82%
0.13%
-1.60%
-2.26%
-0.14%
Y ield
1.77
0.05
2.40
3.55
Cha nge
0.03%
-0.06%
0.00%
-0.08%
Y TD
1.05%
-0.03%
0.15%
0.36%
Treasury
US 10Y
J GP 10Y
AUD10Y
NZD10Y
Commodities
Gold
S ilver
B rent Crude Oil
La s t
1,211.94
16.41
51.10
Singapore Time:
Cha nge
Y TD
0.27%
2.10%
0.27%
4.32%
-0.10% -11.11%
10:01:59 AM
drop in two years in December, suggesting room for further monetary easing.
Bondholders of Kaisa Group Holdings Ltd. are waiting to hear whether the Chinese
developer made a coupon payment on its dollar-denominated notes.
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation.
1 of 5
What to Watch*
Watch*
HSBC CEO for H.K. Anita Fung will depart next month; Helen Wong promoted to Greater China CEO
Turiya hedge fund said to return 17.5% of capital to investors
Citic Bank, BOC apply to seal Kaisa’s assets: Caixin
Kaisa bondholders may see recovery on acquisition: CS
Honda fined $70m in U.S. for underreporting injury claims; Dec. China miss 2014 target
Sony delays PlayStation 4, Vita releases in China after government request
Fast Retailing 1Q net income beats est.; co. maintains FY targets; CFO sees yen weakness boosting profit
Dunkin’ Donuts signs deal to open 1,400 restaurants in China; partners are Jollibee Foods, Jasmine Asset
Alibaba’s Ma apologies to JD.com for comments
China to support M&A with tax preferences: Xinhua
China bans private cars from providing taxi services via apps
Macau gaming sector “not far from bottom:” Credit Suisse
Aluminum in “early innings” of sector recovery: Bernstein
SpiceJet tells Indian govt it will raise enough funds by Jan. 10 to “hold on to operations” aviation official says
Japan cabinet to approve 3.1t yen supplementary budget: Kyodo
Vietnam arrests lawmaker and Housing Group chief Nga
Topix quarterly index review
Consumer Electronics Show Street Wrap
Key Economic Event for this Asia4Pacific week (Last update on 02/01/2015)
Country
Event/Data
For
Monday, 05 January 2015
DE
CN
CN
CN
GB
Germany CPI
China Trade
China Inflation
China Money supply
UK Halifax house prices
(Dec, prelim)
(Dec)
(Dec)
(Dec)
(Dec)
France Consumer confidence
EMU PMI Services
UK PMI Services
US ISM non-manufacturing
(Dec)
(Dec, final)
(Dec)
(Dec)
Tuesday, 06 January 2015
FR
EEU
GB
US
Wednesday, 07 January 2015
DE
EUL
EUL
US
US
CA
Germany Labour market
EMU Unemployment rate
EMU HICP
US ADP employment
US Trade balance
Canada Int'l merchandise trade
(Dec)
(Nov)
(Dec, flash)
(Dec)
(Nov)
(Nov)
Germany Industrial orders
EMU PPI
EMU Retail sales
UK BoE rate announcement
US Consumer credit
(Nov)
(Nov)
(Nov)
Thursday, 08 January 2015
DE
EUL
EUL
GB
US
(Nov)
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation.
2 of 5
Friday, 09 January 2015
DE
DE
FR
GB
GB
GB
CA
US
CA
Germany Industrial production
Germany Trade balance
France Industrial production
UK Trade balance
UK Industrial production
UK Construction output
Canada Housing starts
US Nonfarm payrolls
Canada Labour market
(Nov)
(Nov)
(Nov)
(Nov)
(Nov)
(Nov)
(Dec)
(Dec)
(Dec)
Earnings Releases (Singapore Time)
• Chiyoda (8185 JP) 3Q 2b yen (3 analysts)
• Daiseki (9793 JP) 3Q
• Dip Corp (2379 JP) 3Q
• Hisamitsu Pharmaceutical (4530 JP) 3Q
• Ichibanya (7630 JP) 1H
• Infosys (INFO IN) 3Q net income adj. median 31.5b rupees (24 analysts)
• Kappa Create Holdings (7421 JP) 3Q
• Lawson (2651 JP) 3Q 20.9b yen (3 analysts) 2pm
• Onward Holdings (8016 JP) 3Q
• OSG (6136 JP) FY 17b yen (6 analysts)
• Plenus (9945 JP) 3Q
• Sankyo Tateyama (5932 JP) 1H
• Seven & I (3382 JP) 3Q 87.4b yen (3 analysts) 2pm
• Shimachu (8184 JP) 1Q
• Wakita (8125 JP) 3Q
• Yoshinoya Holdings (9861 JP) 3Q
IPO Notice
• TICON Freehold & Leasehold Real Estate Investment Trust (TREIT TB) 342.5m shrs at 10 baht
New Bond Issues
• No major new issues.
Rating changes
• No major changes.
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation.
3 of 5
Recent Asian Bond Issues
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation.
4 of 5
Contacts
VP Bank (Singapore) Ltd.
Thomas Rupf, CFA, FRM, CAIA
Jeffrey Wong
Jane Foo
Head of Investment Adv. & Treasury Asia
Tel +65 6305 0072, Fax +65 6305 0052
Execution / Equity Advisor
Tel +65 6305 0070, Fax +65 6305 0052
Senior Execution / Forex Advisor
Tel +65 6305 0073, Fax +65 6305 0052
[email protected]
[email protected]
[email protected]
Source: Bloomberg, unless otherwise stated
VP Bank (Singapore) Ltd.
9 Raffles Place
#49>01 Republic Plaza
Singapore 048619
Disclaimer
General: This document was produced by VP Bank (Singapore) Ltd. (hereinafter referred to as VP Bank) using sources that are believed to be reliable. It is intended solely for information
purposes, and the utmost care has been exercised in its production. However, VP Bank does not warrant either expressly or tacitly that the contents of this document are complete, up>to>date or
correct. In particular, the information in this document may not include all relevant information regarding financial instruments or their issuers. The sources for the information in this document
may include national and international media, information services (e.g. Reuters, Bloomberg), publicly accessible databanks, publicly available corporate information, the publications of rating
agencies, and information from companies (notably issuers, lead managers, co>managers, guarantors and sellers of financial instruments) with which VP Bank and/or its subsidiaries may have a
business relationship relating to the products mentioned in this document or other business relationships. The opinions expressed in this document reflect the opinions of VP Bank on the date
stated in the document. It is possible that VP Bank and/or its subsidiaries have published in the past or will publish in the future documents that contain information and opinions that do not
accord with those in this document. VP Bank and/or its subsidiaries are not obliged to provide recipients of this document with such documents offering different information or opinions.
Suitability / Not an Offer: The information contained in this document does not constitute a recommendation to buy, hold or sell the financial instruments described herein, nor does it
constitute advice on legal, financial, accountancy or taxation matters or any form of personal advice. In particular, the financial instruments discussed in this document may be unsuitable for an
investor on the basis of his/her investment objective, time horizon, risk>tolerance, financial situation or other personal circumstances. It may be the case that financial instruments described in this
document (in particular investment funds, exchange>traded funds and certificates) are not authorized for sale in every country. The information provided in this document is therefore in no way a
substitute for individual advice by a specialist qualified in the matters referred to or a substitute for perusal of the documents provided by the issuers and sellers of the financial instruments (e.g.
issue prospectuses, term sheets, etc.). In particular, this document does not constitute an offer, a solicitation to make an offer or a public advertisement inviting participation in transactions
involving the financial instruments described herein or an invitation to enter into any transaction. VP Bank and its subsidiaries expressly refuse to accept any liability for any detriment or loss that
is claimed to have been incurred on the basis of information contained in this document.
Notes on risk: The price and value of the investments mentioned in this document and the returns achieved on these investments may rise or fall. No assurance can be given to investors that
they will recover the amounts that they investimate The past performance of an investment is not a reliable indicator of future performance. The same remarks apply to performance forecasts.
Any investment mentioned in this document may involve the following risks: issuer (creditworthiness) risk, market risk, credit risk, liquidity risk, interest rate risk, currency risk, economic risk and
political risk. Investments in emerging markets are speculative and particularly strongly exposed to such risks. This list of risks should not be regarded as exhaustive.
Other information: To the extent permitted by law, VP Bank and/or its subsidiaries may participate in other financial transactions with the issuers of assets mentioned in this document. They
may invest in these issuers or render services to them, acquire orders from them, hold positions in their assets or in options on those assets, carry out transactions in these positions, or have
another substantial interests relating to the issuers of assets mentioned in this document. Such actions or situations may already have occurred in the past. Employees of VP Bank who are
involved in the production of this document are free to buy, hold or sell the assets discussed in this document. The contents of this publication are protected by copyright, and any utilization
other than private use requires the prior authorization of VP Bank.
Notes on the distribution of this document: This document may be distributed only in countries in which its distribution is permitted by law. Thus the contents of this document are not
intended for persons subject to a jurisdiction that prohibits the dissemination of, access to or use of this document or makes such dissemination, access or use subject to authorization, whether
on the basis of the nationality or residence of the person concerned or for other reasons. Persons who come into possession of this document or gain knowledge of its contents must therefore
acquaint themselves with local laws and restrictions and abide by them.
Hong Kong: This information has been distributed by VP Wealth Management (Hong Kong) Ltd. Related financial products or services are only available to wholesale clients with liquid assets of
over USD 1 million that meet the regulatory criteria and the Company’s policy to be a client, and who have sufficient financial experience and understanding to participate in financial markets in a
wholesale jurisdiction. VP Wealth Management (Hong Kong) Ltd. is a licensed corporation under the Securities and Futures Ordinance (Cap. 571) and regulated by the Securities and Futures
Commission (SFC).
Luxembourg: This document was produced by VP Bank (Singapore) Ltd. and distributed by VP Bank (Luxembourg) S.A., Avenue de la Liberté 26, LU>1930 Luxembourg. VP Bank (Luxembourg)
S.A. is subject to authorization and regulation by the Luxembourg Commission de Surveillance du Secteur Financier (CSSF). VP Bank (Singapore) Ltd. is licensed as a merchant bank by the
Monetary Authority of Singapore.
Singapore: This document is distributed by VP Bank (Singapore) Ltd., which is licensed as a merchant bank by the Monetary Authority of Singapore.
Switzerland: This document was produced by VP Bank (Singapore) Ltd., and distributed by VP Bank (Schweiz) AG, Bahnhofstrasse 3, 8022 Zurich. VP Bank (Singapore) Ltd. is licensed as a
merchant bank by the Monetary Authority of Singapore. VP Bank (Schweiz) AG is subject to authorization and regulation by the Swiss Financial Market Supervisory Authority (FINMA).
US/UK/Canada: This document or copies thereof may not be delivered to persons who are resident in the US, UK or Canada or who are citizens of one or more of these countries.
* Numbers shown in the content can vary from the table on page 1 due to the time the information was collected.
Important: Please take note of the legal information on the last page of this documentation.
5 of 5

Download Report