THE MORNING VIEW

THE MORNING VIEW


News Briefs
December 05, 2019
Local Key Events
  • San Miguel Food and Beverage, Inc. (Pse Ticker: FB) received the top credit rating "PRS Aaa " from the Philippine Rating Services Corp. (PhilRatings) for its planned issuance worth up to Php15 billion. According to PhilRatings, it considered the company's strong brand equity and leading market position of FB's core businesses.
     
  • The Board of Investments (BoI) has exceeded the 2018 total investments of Php914.96 billion and as of October 2019 it has breached its Php1 trillion target for 2019. According to the Chairman of the BoI and Trade Secretary Ramon M. Lopez, the biggest investment approved by BoI in October was that of the Dennis Uy-led Dito Telecommunity Corp..
     
Local Indices
  • Local equities continued to fall on worries and confusion over the US-China trade war. Tuesday's reports indicated a possible statemate in the US-China discussions, while yesterday's pointed closer movements to an agreement. President Duterte's threat against Metro Manila water concessionaires  and opposition to ABS-CBN's franchise renewal likewise spooked local investors. The PSEi closed at 7,815.93 (-0.50% DoD).
     
  • Local fixed income yields fell ahead of today's inflation data release. With a lower-than-expected inflation print last October, BSP Governor Diokno stated that monetary easing may resume early January depending on the inflation data for November and December. On average, yields fell 3.07 bps DoD, led by the long-end of the curve which declined 5.03 bps DoD.
     
  • The Philippine peso weakened versus the US dollar amid continuing trade tensions between US and China after the statement of President Doland Trump that he has no deadline for a phase one deal with China. The USD/PHP pair finished at 51.020 (0.14%).
US and Europe Indices
  • US equities recovered as news came out that US and Chinese negotiators are making good progress on trade discussions despite recent tensions between the two countries. The DJIA closed at 27,649.78 (0.53% DoD) and the S&P 500 ended at 3,112.76 (0.63% DoD).
     
  • European equities advanced, led by Europe's basic resources shares, on the back of improved investors' sentiment over the US-China trade talks and a steady IHS Markit's eurozone composite Purchasing Managers' Index (PMI). The MSCI Europe closed at 135.36 (+1.16% DoD).
     
  • US Treasury yields reversed and rose on the back of positive developments on the US-China trade deal. On average, yields closed at 1.5367 (2.83 bps DoD), with the 10Y ending at 1.7740% (5.83 bps DoD) and the 2Y closing at 1.5721% (3.41 bps DoD).
     
  • The US Dollar continued to weaken, falling to a one-month low, as weaker-than-expected US jobs growth data came out. The DXY index closed at 97.6480 (-0.09%).
Asia Pacific Index
  • Asian equities were unable to fully benefit from positive trade news prior to market close, hence investors remained cautious throughout the day, leading to declines. The MSCI APxJ closed at 518.18 (-0.74% DoD).
     
Sources: BPI, Business World, PDI, Phil Star, Manila Bulletin, Reuters, Briefing, Bloomberg, CNN, Dow Jones, The Wall Street Journal, CNBC , Market Watch
 

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