Month: September 2017

Oil could soon overtake its 2017 highs, says strategist

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Crude oil is on pace to wrap up a strong September, having gained a little over 9 percent month to date.

Some see further gains ahead as much of the commodity’s losses have been recouped.

“Investors have really gained confidence in oil, after the OPEC cuts that were originally discussed earlier in the year are starting to take shape here, and oil production is being curbed,” Phil Streible, senior market strategist at RJO Futures, said Thursday on CNBC’s “Trading Nation.”

Further fueling the commodity’s recent upside is the International Energy Agency having upped its demand outlook for the end of this year and into 2018, Streible said.

Due to this combination of production cuts and growing demand, oil could head up to its 2017 high, just above $55, or even $60 per barrel by year-end. A global supply glut has plagued the market for several years, and OPEC member countries and non-member producers have vowed to implement cuts to curb such oversupply.

His forecasts would imply between 7 percent and 16 percent of upside from current levels; crude oil has not traded at $60 per barrel since mid-2015.

At this point, traders should seek to remain long the oil market above $50 per barrel of West Texas Intermediate crude oil, Streible said.

“If we got a two-day consecutive close below the $50 level, use risk management. Take the position off. Otherwise, it could be a nice wild ride back to the upside, and we may even see $60 by year-end,” he said, if economic data continues to be supportive.

WTI crude oil settled about 1 percent lower on Thursday, at $51.56 per barrel, slightly below its five-month highs.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares mixed after dollar rally pauses as investors digest Japan data

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian shares were mixed early in Friday trade after the greenback gave back some gains overnight as markets digested prospects for US tax reform. Markets in Asia also digested a raft of data out of Japan.

The Nikkei 225 shed 0.19 percent in early trade after the dollar rally paused overnight. The US currency, however, inched higher against the yen following the release of a raft of economic data early in the session. The greenback traded at 112.56 at 8:12 a.m. HK/SIN, up from levels around 112.4 earlier, but below the 113 touched during Asian trade on Thursday.

Across the Korean Strait, the Kospi tacked on 0.45 percent as most manufacturing and oil stocks posted gains. Automakers were also moderately higher.

Down Under, the S&P/ASX 200 was mostly unchanged. The index traded higher by 0.04 percent as gains in materials and gold stocks were offset by losses in energy names.

The dollar lost some steam on Thursday after surging on optimism following the release of the GOP’s tax reform plans on Wednesday. The plan called for a lower corporate tax rate and would cut the highest individual income tax rate. Criticism, however, arose over how the plan was skewed toward the wealthy, while questions remained over how the tax cuts would be funded.

The dollar index, which tracks the greenback against a basket of rivals, stood at 93.183 by 8:04 a.m. HK/SIN after climbing as high as 93.666 overnight.

The pullback in the US currency was likely due to the “reality check setting in that the road to reform will be a long and winding trek — and an extremely bumpy one at that based on the current GOP squabbling,” said Stephen Innes, APAC head of trading at OANDA, in a note.

US stocks closed higher as investors weighed recently announced tax reform plans. The Dow Jones industrial average rose 0.18 percent, or 40.49 points, to close at 22,381.20 and the small-cap Russell 2000 finished the session at a record 1,488.79.

Meanwhile, Kansas City Fed President Esther George, a non-voting member this year, said on Thursday that continued, gradual interest rate hikes were appropriate for economic expansion, Reuters said.

Back in Asia, investors also digested the release of economic data out of Japan: August core consumer prices rose 0.7 percent compared with one year ago, marking an eighth consecutive month of yearly increases, according to Reuters. Retail sales increased 1.7 percent last month compared with the previous year, missing a median estimate for a 2.6 percent rise, Reuters said.

Industrial production data, however, beat forecasts. August figures showed an increase of 2.1 percent compared with the previous month, above the 1.9 percent median forecast, Reuters said.

In corporate news, Toshiba on Thursday signed an agreement to sell its memory chip unit to a group led by Bain Capital for 2 trillion yen (USD 18 billion). Still, the saga has yet to conclude: Western Digital, which is involved in a joint venture with the Japanese conglomerate, has sought an injunction to prevent Toshiba from selling the unit. Toshiba stock was up 0.98 percent in early trade.

On the energy front, oil clawed back gains after sliding around 1 percent overnight. US crude futures rose 0.04 percent to trade at USD 51.58 a barrel and global benchmark Brent crude advanced 0.35 percent to trade at USD 57.61.

Brent had climbed to a 26-month high of USD 59.49 earlier this week following a threat by Turkey to shut down an oil pipeline following an independence referendum in the semiautonomous Kurdish region.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

New Delhi wants to buy US drones to monitor China in the Indian Ocean

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Hugh Hefner, iconic founder of Playboy, has died at age 91

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Leslie Shaffer
CNBC

Hugh Hefner, the iconic founder of Playboy magazine, died at his home, the Playboy Mansion, of natural causes at age 91, Playboy Enterprises said in a statement on Wednesday.

Playboy magazine was founded more than 60 years ago to create a niche upscale men’s magazine, combining images of nude women with in-depth articles, interviews and fiction by a variety of well-known writers.

Hefner reportedly founded the magazine with $600 and another $1,000 borrowed from his mother. The first centerfold, an iconic feature of the monthly magazine, was of Marilyn Monroe.

“He defined a lifestyle and ethos that lie at the heart of the Playboy brand, one of the most recognizable and enduring in history,” the younger Hefner said.

While the magazine managed to both inspire and ride the “sexual revolution” of the 1960s and 70s, in recent years it has struggled in the face of tough competition from the availability of free pornography online.

For a brief period from mid-2016 through early 2017, the magazine experimented with avoiding nudity, before returning to its previous formula.

The statement said Playboy magazine was aimed at more than the market for nude images.

“Hefner took a progressive approach not only to sexuality and humor, but also to literature, politics and culture,” the statement said, calling the “Playboy Interview,” or an extensive discussion between a well-known person and an interviewer, a “standard setter.”

Hefner also led free-speech battles in the U.S., fighting all the way to the Supreme Court after the U.S. Post Office refused to deliver his magazine, the statement noted.

Hefner was survived by his wife, Crystal, his sons, Cooper, David and Marston, and his daughter, Christie, the statement said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares buoyed after release of US tax reform plans

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Most Asian indexes rose in early Thursday trade, after US equities advanced and the greenback rose following the unveiling of a long-awaited tax reform plan stateside.

The Nikkei 225 climbed 0.49 percent in early trade as oil stocks and most financial names notched gains.

Across the Korean Strait, the Kospi shed 0.04 percent as automakers stumbled. The tech sector was mixed, but shares of heavyweight Samsung Electronics rose 0.77 percent. SK Hynix outperformed its peers to climb 2.43 percent early in the session.

Down Under, the S&P/ASX 200 rose 0.35 percent, with the information technology and utilities sub-indexes leading gains on the broader index. Bank stocks also gained: Westpac was up 0.88 percent and ANZ rose 0.47 percent.

A highly-anticipated plan to reform taxes in the US was released by Republicans on Wednesday. The framework proposed bringing the corporate tax rate to 20 percent from 35 percent and reducing the highest individual income tax rate to 35 percent from 39.6 percent.

Investors stateside cheered the tax reform plans, with stocks closing the last session higher. The Dow Jones industrial average rose 0.25 percent, or 56.39 points, to close at 22,340.71 while the small-cap Russell 2000 surged to a record high on Wednesday.

Despite optimism on Wall Street, questions remained over how the tax cuts would be funded.

“It’s still going to be a long road to congressional approval and the changes that we’ve seen so far are less encouraging than his campaign promises,” said Kathy Lien, managing director of FX strategy for BK Asset Management, in a note.

Still, the dollar gained on the developments out of Washington as well as a better-than-expected durable good orders print in August.

The dollar index, which tracks the greenback against a basket of rivals, stood at 93.431 at 8:13 a.m. HK/SIN after rising as high as 93.607 overnight. Against the Japanese currency, the dollar held onto most overnight gains to fetch 112.76 yen.

The yield on the ten-year US Treasury note rose to 2.31 percent on Wednesday, up from levels around 2.2 percent on Tuesday.

Potential market movers in the day include Chinese insurer ZhongAn Online, which will make its debut on the Hong Kong Stock Exchange. The insurer is backed by prominent names, including Alibaba Group Holding’s Jack Ma, Tencent Holdings’ Pony Ma and Ping An Insurance Group’s Ma Mingzhe.

On the energy front, oil edged down. Brent crude extended losses, falling 0.33 percent to USD 57.71 a barrel after settling almost 1 percent down in the last session. US crude was mostly unchanged, trading 0.08 percent down at USD 52.10.

In economic news, the Reserve Bank of New Zealand on Thursday kept its cash rate steady at 1.75 percent. The central bank also said in a statement that a softer Kiwi dollar would help to fuel inflation. That was a slight change in language from the RBNZ’s August statement that said a weaker Kiwi dollar was “needed,” Reuters reported.

The Kiwi dollar edged up against the greenback to trade at USD 0.7215 at 8:14 a.m. HK/SIN after falling as low as $0.7198 overnight.

Elsewhere, the Bank of Thailand on Wednesday kept its policy rate unchanged, as was widely expected. Still, the move was contrary to calls from the government to cut rates due to the firmer Thai baht, according to local media.

In other currency moves, the Canadian dollar fell sharply against the dollar overnight after Bank of Canada Governor Stephen Poloz gave a speech seen dovish by the markets. The loonie traded at 1.2476 to the dollar at 8:16 a.m. HK/SIN, weaker than the 1.23 handle seen for the past week.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India’s economy may be in the doldrums, but it’s getting more competitive

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s economic growth hit a three-year low during the April-June period, enveloping Prime Minister Narendra Modi in a barrage of criticism for poor execution of major reforms such as the recent national sales tax and demonetization.

But a new World Economic Forum study indicates his government has made progress in strengthening overall business sentiment.

The South Asian giant ranked 40th out of 137 countries on the organization’s 2017 global competitiveness ranking — one spot lower than last year’s edition, but still its highest-ever score in WEF’s current methodology.

National competitiveness is defined as a set of institutions, policies and factors that determine a country’s level of productivity.

Improvement across most pillars of competitiveness, particularly infrastructure and higher education, reflects recent public investments in these areas, WEF said. Strides in labor market efficiency, especially the nation’s ability to attract and retain talent, also helped India’s 2017 ranking, the Swiss foundation added.

“The quality of institutions has increased further, especially in terms of efficiency of public spending.”

Modi’s government has pledged to spend a record $60 billion on infrastructure this financial year, but concerns are rampant that lower tax collections and weak economic growth could force New Delhi to cut expenditures.

Going forward, the private sector still considers corruption, access to financing and tax rates as the most problematic factors for doing business in India, the WEF noted.

The level of technological readiness of individuals and firms also remains relatively low, it said, which suggests “that the benefits of innovative activities are not widely shared.”

This wide disconnect between innovative strength and technological readiness will prevent the emerging market darling from fully leveraging its strengths across the wider economy, the WEF said.

Switzerland was ranked first in WEF’s 2017 report, followed by the U.S., Singapore and Holland.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Most Asian indexes slide as dollar holds onto overnight gains after Yellen speech

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian shares remained cautious on Wednesday as investors digested Federal Reserve Chair Janet Yellen’s overnight speech and as North Korea tensions took a backseat.

The benchmark Nikkei 225 slid 0.41 percent in early trade despite the weaker yen as automakers, financials and trading houses pulled back.

Across the Korean Strait, the Kospi traded 0.03 percent above the flat line despite most tech stocks eking out gains after falling in the last session: Samsung Electronics rose 0.58 percent and SK Hynix added 0.61 percent. Most manufacturing and brokerage names saw declines.

Down Under, the S&P/ASX 200 came under pressure. The index traded lower by 0.06 percent in early trade as the information technology and telecommunication services sub-indexes weighed.

Fed Chair Janet Yellen’s speech on Tuesday was regarded as slightly hawkish by market watchers after she said the central bank had to continue raising interest rates gradually in the face of “significant uncertainties.”

However, Yellen also acknowledged that the Fed may have “misjudged” the strength in the labor market and inflation, suggesting the central bank could be more dovish in removing policy accommodation than previously expected.

The probability of at least one more rate hike by the end of the year stood at 77.9 percent on Wednesday, according to the CME Group’s FedWatch tool.

The greenback touched a one-month high following Yellen’s comments, although it later gave up some gains. The dollar index, which tracks the greenback against a basket of rival currencies, stood at 93.091 at 8:18 a.m. HK/SIN after reaching as high as 93.286 overnight. That compared with levels at the 92 handle earlier this week.

The dollar also clawed back gains against the Japanese currency to fetch 112.42 yen. The US currency had traded around the 111 handle during Asian trade on Tuesday after North Korea accused President Donald Trump of declaring war.

In news related to the hermit state, the US Treasury Department on Tuesday put sanctions on North Korean-linked banks and persons. The sanctions aimed to curb financial support for the North’s weapons program. Trump said on Tuesday that the US was “totally prepared” to use the military option against the North, although that was not its preferred choice, Reuters said.

Meanwhile, US Commerce Secretary Wilbur Ross on Wednesday praised China for stepping up to the plate in ordering commercial banks on the mainland to stop doing business with Pyongyang.

Ahead, markets awaited headlines on US tax reform, which is expected to be unveiled on Wednesday US time.

US stocks closed mixed on Tuesday. The Dow Jones industrial average slipped 0.05 percent, or 11.77 points, to close at 22,284.32, but the S&P 500 and tech-heavy Nasdaq finished slightly higher.

In currencies, the euro extended losses after falling to its lowest levels in a month overnight, trading at USD 1.1780 at 8:32 a.m. HK/SIN. The common currency had slid following a weekend election in Germany, which delivered Chancellor Angela Merkel a fourth term, but also a need to form a coalition.

“Dollar strength overnight also owes something to further pressure on the euro, linked to Sunday’s German election results and with an eye to an ‘illegal’ referendum on Catalonia independence this weekend and then looking ahead, Italian elections next year,” said Ray Attrill, head of FX strategy at National Australia Bank.

On the energy front, oil prices edged up after falling overnight. Brent crude tacked on 0.27 percent to trade at USD 58.60 a barrel and US crude advanced 0.42 percent to USD 52.10. Prices had touched 26-month highs in the previous session after Turkey on Monday warned it could curb oil exports from Iraq to the rest of the world.

Here’s the economic calendar for Wednesday (all times HK/SIN):

9:30 a.m.: China industrial profits
3:30 p.m.: Bank of Thailand interest rates decision

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asia markets slip after North Korea accuses Trump of declaring war

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Asian markets were pressured in early Tuesday trade, following declines on Wall Street overnight, as the war of words between North Korea and the US escalated.

Japan’s Nikkei 225 sank 0.28 percent in early trade after the yen strengthened overnight as investors focused on North Korea.

Across the Korean Strait, the Kospi declined 0.32 percent as blue chip tech stocks sold off following Wall Street’s lead. Samsung Electronics was down 1.49 percent, SK Hynix tumbled 2.2 percent and LG Electronics was fell 3.2 percent.

Down Under, the S&P/ASX 200 wobbled around the flat line. The index edged down 0.01 percent in early trade. The 1.91 percent gain in the energy sub-index was offset by losses in retailers and telecommunication services stocks.

Geopolitical tensions came to the fore again overnight after North Korea’s foreign minister said U.S. President Donald Trump had declared war. Foreign Minister Ri Yong Ho said that meant the North could target and shoot down US bombers in return. The White House responded that the US had not declared war on the hermit state late on Monday.

The ramp up in saber-rattling followed Trump’s speech at the United Nations last week, where the president had warned that if forced, the US would have “no choice but to totally destroy North Korea.”

Safe haven assets were buoyed, with spot gold held above the USD 1,300 level reached overnight. The yellow metal, often regarded as a safe haven in times of geopolitical uncertainty, traded at USD 1,309 an ounce at 8:26 a.m. HK/SIN compared with the USD 1,290 handle most of last week.

The Japanese currency held onto overnight gains to trade at 111.63 yen to the dollar at 8:11 a.m. HK/SIN after trading at the 112 handle during Asian trade on Monday.

The yen had firmed slightly following the release of the Bank of Japan’s July minutes on Tuesday. The minutes indicated policymakers were optimistic about consumer prices, with some stating that a 2 percent inflation target was a global standard, Reuters said.

Markets stateside were jittery on Monday, with a fall in technology stocks adding to declines in major indexes. The Dow Jones industrial average shed 0.24 percent, or 53.5 points, to close at 22,296.09.

Analysts said North Korea’s accusation that Trump had declared war had made markets nervous.

“The comments have taken the wind out of the sails just when risk was looking fairly upbeat as we headed into Europe, despite the uncertainty around the elections. That said, it’s hardly panic selling and the moves look measure and contained,” said Chris Weston, chief market strategist at IG.

Elsewhere, the euro edged up after retreating following the German election on Sunday. While provisional results showed German Chancellor Angela Merkel’s party had the most votes, she will likely face a tough coalition negotiation. Support for a far-right party was also larger than expected. The common currency traded at $1.1853 at 8:15 a.m. HK/SIN, around its lowest levels since late August.

Also in politics, Japanese Prime Minister Shinzo Abe said Monday he would be dissolving the lower house of parliament on Sept. 28 ahead of a snap election expected on Oct. 22, Reuters said.

Investors also digested comments from New York Fed President William Dudley and Chicago Fed President Charles Evans. Dudley said Monday that the central bank was on the path to slowly increasing interest rates as “temporary” factors affecting inflation faded, Reuters said. Evans adopted a more cautious tone, stating that the Fed had to wait for marked signs that prices were increasing before raising rates.

In corporate news, the sale of Toshiba’s memory chip unit to a group led by Bain Capital for $18 billion had yet to be signed, according to Reuters. Toshiba had informed its banks on Monday that Apple, which is part of the consortium, had not agreed with conditions in the sale. Toshiba stock was up 0.33 percent in early trade, while most other Japanese tech stocks pulled back.

On the energy front, oil prices were steady after rising more than 3 percent overnight as oil producers indicated that rebalancing was gradually taking place. Brent crude tacked on 0.12 percent to trade at $59.09 a barrel, near its highest levels since mid-2015. U.S. crude shed 0.21 percent to trade at USD 52.11

Here’s the economic calendar for Tuesday (all times HK/SIN):

1:00 p.m.: Singapore industrial production
4:30 p.m.: Hong Kong August trade data

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Barack Obama personally warned Mark Zuckerberg after the election about the extent of fake news on Facebook

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Former president Barack Obama personally warned Facebook founder and CEO Mark Zuckerberg in a post-2016 election meeting to check the spread of fake news on the site, but he was told there was no easy fix, according to Washington Post report on Sunday.

The November 19 meeting reportedly took place in Lima, Peru, at a gathering of world leaders two months before Donald Trump’s inauguration. The meeting followed Zuckerberg saying that the idea fake news driven by Russian-linked operatives on the site could have an major impact on voting was “crazy.”

The Washington Post said Facebook commented that it has come forward at “every opportunity” to disclose links to fake news items. A spokesperson for Obama declined to comment, the newspaper said.

According to the article, Facebook initially discovered elements of the Russian information operation in June 2016 and notified the FBI, but efforts to address and fix the problem lagged as the company and the government struggled to figure out a gameplan.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian shares climb as investors track German, New Zealand election results

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Major Asian indexes climbed in early Monday trade as investors digested elections in Germany and New Zealand over the weekend.

Japan’s Nikkei 225 rose 0.59 percent in early trade as automakers and most financials notched gains. Across the Korean Strait, the Kospi edged up 0.07 percent to break a four-day losing streak.

Down Under, the S&P/ASX 200 advanced 0.32 percent, with energy and financials leading gains. The heavily-weighted financials sub-index was up 0.55 percent.

The euro and Kiwi dollar were in focus as markets digested political headlines in the German and New Zealand elections.

German Chancellor Angela Merkel’s Christian Democratic Union party looked set to remain the largest party in the next German parliament, according to a Sunday exit poll. Merkel’s Christian Democratic Union party, together with its sister-party the Christian Social Union, won 32.5 percent of the vote, broadcaster ARD’s exit poll showed. Merkel’s bloc is expected to form a coalition after achieving a poorer-than-expected result.

Meanwhile, the Alternative for Germany (AfD) party was expected to become the first far right party to enter the Bundestag since World War II, with an indicated 13.5 percent of the vote.

The euro firmed after initially sliding on the uncertainty. The common currency stood at USD 1.1929 at 8:36 a.m. HK/SIN after touching as low as USD 1.1895 earlier.

Elsewhere, the New Zealand election saw Prime Minister Bill English’s National Party win the most votes, although it came short of securing a majority in parliament. That weighed on the Kiwi dollar, which fell to its lowest levels in about a week, as investors tracked coalition negotiations. The currency stood at USD 0.7286 at 8:19 a.m. HK/SIN, off the USD 0.73 handle seen most of the previous week.

Stateside, US equities closed mostly unchanged on Friday, but made gains on the week. The Dow Jones industrial average edged down 0.04 percent, or 9.64 points, to close at 22,349.59.

The pound was on the radar after Moody’s downgraded Britain’s sovereign credit rating over the weekend to Aa2 from Aa1. Investors also weighed British Prime Minister’s highly-anticipated Brexit speech in Florence on Friday, which turned up few specifics as to what the transition period would look like before the U.K. left the EU completely. Sterling traded at USD 1.3513 at 8:21 a.m. HK/SIN compared with as high as USD 1.3595 on Friday.

In individual stocks, Fonterra rose 0.16 percent in early trade after the dairy company reported on Monday that full-year profit declined 11 percent to NZ USD 745 million (USD 542 million). Revenue for the year rose 12 percent to NZ USD 19.2 billion (USD 13.98 billion).

Over in Japan, Toshiba fell 1.66 percent in early trade, underperforming other tech stocks. The conglomerate had announced last week that it would sell its memory chip unit to a consortium led by Bain Capital, although stumbling blocks could lie ahead.

In other currencies, the dollar index, which tracks the greenback against major rivals, stood at 92.309, a touch higher than the 92.1 handle seen at the end of last week. The US currency also firmed against the Japanese yen to 112.44.

On the energy front, oil prices were steady after rising on Friday when oil producers announced they could wait until next year to make a decision on output cut extensions. Brent crude slipped 0.04 percent to trade at USD 56.84 a barrel and US crude edged down 0.1 percent to USD 50.61.

Here’s the economic calendar for Monday (all times in HK/SIN):

12:00 p.m.: Thailand August trade
1:00 p.m.: Singapore August CPI

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow