HEADLINES

Economy

UK: Labor market conditions deteriorate in Nov. The UK labor market conditions deteriorated further in Nov as firms paused recruitment activity following the late Oct budget announcement, a report compiled by S&P Global showed. Permanent job placements posted its biggest fall since Aug 2023 amid reports of reduced vacancies, the KPMG/REC Report on Jobs said. Many respondents said that the Autumn Budget had led to uncertainty and the reassessment of staffing needs. Temporary staff billings declined for a fifth straight time due to similar reasons. (RTT)

EU: Latvia inflation rises to 2.2%, highest in 14 months. Latvia's CPI accelerated in Nov to the highest level in more than a year, preliminary data from the statistical office showed. The CPI rose 2.2% YoY in Nov, following a 2.0% increase in Oct. Further, this was the highest inflation rate since Sept 2023, when prices had risen 3.3%. Food prices increased 4.3% annually in Nov, and those of recreation and culture rose by 5.9%. Meanwhile, transport costs dropped by 3.6%. (RTT)

EU: Ireland manufacturing output grows most in 18 months. Ireland's manufacturing output expanded at the quickest pace in one and a half years, preliminary figures from the Central Statistics Office showed. Manufacturing output surged a seasonally adjusted 17.1% YoY in Oct, following a 1.7% rise in Sept. Further, this was the quickest increase since April 2023. On a monthly basis, output in the manufacturing sector rebounded 5.2% versus a 6.4% fall in the prior month. Industrial production advanced 16.3% in Oct compared to last year, much faster than the 1.8% gain a month ago. (RTT)

China: Inflation weakens as new risks cloud horizon. China's consumer inflation hit a five-month low in Nov as fresh food prices pulled back while factory deflation persisted, suggesting Beijing's recent efforts to shore up faltering economic demand are having only limited impact. The world's second-largest economy is bracing for likely fresh tariffs from a second Donald Trump White House and still dealing with other headwinds, suggesting more policy stimulus will be needed to shore up fragile growth. The CPI rose 0.2% last month YoY, data from the National Bureau of Statistics showed, below the 0.3% increase in Oct and a 0.5% rise forecast in a Reuters poll of economists. CPI fell 0.6% MoM, compared with a 0.3% fall in Oct and a forecast 0.4% decline. (Reuters)

China: Vows more proactive fiscal stimulus measures, moderately looser monetary policy. China's leaders on Monday pledged more proactive fiscal measures and moderately looser monetary policy next year to boost domestic consumption, according to an official readout of a key policy meeting that outlined upcoming economic priorities. The Politburo, a top decision-making body led by President Xi Jinping, said it will stabilize property and stock markets while strengthening the unconventional counter-cyclical adjustment, the Communist Party's CNBC-translated readout said. (CNBC)

Taiwan: Nov exports expand faster than expected, outlook upbeat. Taiwan's exports rose more than expected in Nov benefiting from the booming AI industry and a bounce back in demand from top trading partner China, with the outlook upbeat. Exports rose 9.7% on the year to USD41.09bn, the finance ministry said, both beating a forecast for expansion of 8% in a Reuters poll and above Oct's gain of 8.4%, marking the 13th straight monthly rise. The ministry said it saw a strong outlook with steady export growth continuing thanks to AI boosting business for semiconductor companies. The fourth quarter is traditionally strong for Taiwan exports due to the peak end-of-year shopping season in US and European markets. (StarBiz)

Philippines: Oct jobless rate inches up to 3.9% due to multiple typhoons. The number of jobless Filipinos swelled in Oct while job quality worsened, coinciding with the decline in the number of jobseekers who were discouraged by the onslaught of powerful typhoons. Results of a nationwide survey of 44,388 households showed there were 1.97m people who were either unemployed or out of business in Oct, worse than the 1.89m recorded in Sept, the Philippine Statistics Authority (PSA) reported. That translated to a jobless rate of 3.9% in Oct, higher than the 3.7% recorded in the preceding month. On a QoQ basis, the top three industries that saw the deepest decline in employment were agriculture, which was lower by 265,000, administrative and support services down 260,000, and transportation down 107,000. (Philippine Daily)

Japan: Revises Q3 GDP higher, keeps alive BOJ rate-hike expectations. Japan's economy expanded in July-Sept at a faster pace than initially reported thanks to upward revisions in capital investment and exports, keeping alive market expectations for a near-term interest rate hike by the central bank. But a downward revision on consumption underscores the fragile nature of the economic recovery, and leaves uncertainty on how soon the central bank could raise interest rates again, with a Dec hike not guaranteed either, some analysts say. The data will be among factors the BOJ will scrutinise at its next policy meeting on Dec 18-19, when some analysts expect a hike in short-term interest rates from the current 0.25%. (Reuters)

Markets

Axiata (Neutral, TP: RM2.35): Said to near deal for Indonesian units. Malaysian wireless carrier Axiata Group and Indonesian conglomerate PT Sinar Mas Group are nearing an agreement to merge their telecommunications operations in Southeast Asia's largest economy. The owners of PT XL Axiata and PT Smartfren Telecom are finalising details of a transaction that could be announced as soon as this week. The companies have been discussing the structure of a deal that may involve a mix of cash and shares, and that would create an entity with about 100m customers. (Bloomberg)

GFM Services: To explore 45% stake in energy services firm Shapadu for RM30m cash. Facility management firm GFM Services said it has signed an agreement to explore a stake in oil-and-gas services firm Shapadu Energy SB for an indicative RM30m cash. Under the proposed acquisition, GFM will subscribe to shares equivalent to 15% in Shapadu Energy for RM10m, and purchase 30% directly from Shapadu Corporation for RM20m, GFM said. GFM and Shapadu will also sign a put and call option agreement, it said. (The Edge)

TMC Life Sciences: Shareholders vote to remove Wan Nadiah as director. TMC Life shareholders voted to remove suspended CEO Wan Nadiah Wan Mohd Abdullah Yaakob as a director. Its bourse filing showed that 58.7% of shareholders, representing 99.98% of voting shares, supported the resolution, while 41.3% rejected it. The removal follows allegations of misconduct, with Wan Nadiah facing five charges after an internal inquiry. She had previously been suspended in Jan 2024 and was found guilty of all charges. (The Malaysian Reserve)

Gagasan Nadi: Signs DRA for over RM1bn affordable housing project in Kwasa Damansara. Construction and property group Gagasan Nadi Cergas (GNCB) has signed a development rights agreement (DRA) to develop affordable housing in Kwasa Damansara worth over RM1bn in gross development value. In partnership with Kwasa Development (15) SB (KD15), a subsidiary of Kwasa Land SB, GNCB, through its unit Nadi Emery (KKD2) SB (NESB), signed the DRA to undertake the housing projects within the Kwasa Damansara township. (StarBiz)

Haily: Wins RM38m residential development job. Haily Group has accepted an LoA from Meridin East SB for the construction and completion of 168 units of double storey terrace houses in Johor Baru, worth RM38.2m. Haily said the project will take up to 15 months from the commencement date. "The letter of award will not have any effect on the issued share capital and substantial shareholders' shareholdings of the company as there is no issuance of new ordinary shares in the company." (StarBiz)

Paragon Globe: Mutually terminates MoU with Solarvest following land disposal in Johor. Paragon Globe has mutually agreed to terminate MoU with Solarvest Holdings to explore a renewable energy-focused industrial development, following the group's sale of land to a data centre company. According to the Johor-based property developer, the MoU, which was signed on 2 Feb with Solarvest and focused on developing a green industrial township within DESA 100, is now considered irrelevant due to the land sale. (The Edge)

MARKET UPDATE

The KLCI might open lower today after a slide for market superstar Nvidia on Monday knocked Wall Street off its big rally and helped drag US stock indices down from their records. The S&P 500 fell 0.6%, coming off its 57th all-time high of the year so far. The Dow Jones Industrial Average dipped 240 points, or 0.5%, and the Nasdaq composite pulled back 0.6% from its own record. Nvidia's fall of 2.5% was by far the heaviest weight on the S&P 500 after China said it's investigating the company over suspected violations of Chinese anti-monopoly laws. Nvidia has skyrocketed to become one of Wall Street's most valuable companies because its chips are driving much of the world's move into artificial-intelligence technology. That gives its stock's movements more sway on the S&P 500 than nearly every other. Nvidia's drop overshadowed gains in Hong Kong and for Chinese stocks trading in the United States on hopes that China will deliver more stimulus for the world's second-largest economy. The week's highlight for Wall Street will arrive midweek when the latest updates on inflation arrive. Economists expect Wednesday's report to show the inflation that US consumers are feeling remained stuck at close to the same level last month. A separate report on Thursday, meanwhile, could show an acceleration in inflation at the wholesale level. In stock markets elsewhere, the Hang Seng jumped 2.8% in Hong Kong after top Chinese leaders agreed on a "moderately loose" monetary policy for the world's second-largest economy. That's a shift away from a more cautious, "prudent" stance for the first time in 10 years. A major planning meeting later this week could also bring more stimulus for the Chinese economy. In Seoul, South Korea's Kospi slumped 2.8% as the fallout continues from President Yoon Suk Yeol 's brief declaration of martial law last week in the midst of a budget dispute. Back home, the KLCI dropped 1.82 points or 0.11% to 1611.43.

Source: PublicInvest Research - 10 Dec 2024