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CSCI Morning News Circular - 20181005

1. Macro News

• Italy Offers to Cut Deficit From 2020 in Peace Offering to EU. Italy set next year’s deficit target at 2.4 percent of economic output with a commitment to reduce it in 2020 and 2021, a partial concession to the European Union after it pressured Finance Minister Giovanni Tria to contain the ruling coalition’s spending requests.  [Bloomberg]     
• Powell Says Fed May Lift Rates to Levels That Restrain Growth. The Federal Reserve may eventually raise interest rates to levels where they begin to restrain economic growth though that’s still some ways off, Chairman Jerome Powell said. “Interest rates are still accommodative, but we’re gradually moving to a place where they’ll be neutral,” neither holding back nor spurring growth, Powell said.  [Bloomberg]    
• World Bank Trims 2019 Growth Forecast for Emerging Economies in East Asia & Pacific Region. The World Bank has lowered its 2019 economic growth forecast for emerging economies in East Asia and Pacific region to 6% from 6.1%. Economic growth forecast for this year is 6.3%.  [AAStocks]     

1. Industry News   

• Irish Bank Bill for Loan Scandal Said to Top Half Billion Euros. Irish banks paid out over a half a billion euros to customers caught in a mortgage overcharging scandal, according to the nation’s central bank governor. Lenders handed 580mn euros ($667mn) to affected customers by end of August, an increase of about 120mn euros since end of Mar.  [Bloomberg] 
• NYSE Proposes That SEC Revise Its Test of How Exchanges Get Paid. The New York Stock Exchange proposed that U.S. regulators revise their test of how equity exchanges get paid and suggested freezing the rates that exchanges charge for market data, which are viewed by many investors and traders as already too high.  [Bloomberg]     
• Thailand to Impose Mortgage Curbs to Tackle Speculation. Thailand’s central bank will tighten mortgage lending rules to curb property speculation after growing concerned about risks stemming from a prolonged period of near record-low interest rates.  [Bloomberg]    
• Corporate News
• Chinese travel giant Ctrip partners with Splyt to push into int’l ride-hailing, setting up Didi clash. Ctrip will allow users to book a ride on its app as they travel across the world through a partnership with London-based ride-hailing marketplace Splyt, a move that pits it against Chinese car-hailing giant Didi Chuxing in overseas markets.  [SCMP] 
• SAIC-GM to recall 3.33m vehicles over defective suspension.  SAIC-GM, a JV between SAIC Motor and General Motors, will recall about 3.33mn vehicles due to a defect in the suspension system. The affected cars include Buick, Chevrolet and Cadillac cars produced from 2013 to 2017, according to the State Administration of Market Regulation. [China Daily] 
• China's Dongfeng Motor to recall over 72,000 cars. Dongfeng Motor will recall more than 72,000 vehicles due to defective ignition locks, according to the  market regulator. The recall, starting from Oct 12, will involve 72,561 cars, including Livina, Sylphy, New Lannia and Qichen models manufactured between March and Nov 2017, according to the State Administration for Market Regulation.  [China Daily] 
• SoftBank, Toyota Team Up on Ride-Hailing, Self-Driving Cars. Japan’s SoftBank Group Corp. and Toyota Motor Corp. are teaming up on ride-hailing and self-driving car technology to offer on-demand transportation services, as they accelerate their push into a market dominated by U.S. technology and car companies.  [Bloomberg]
• Saudi Arabian Banks Agree to Form Kingdom’s Third-Biggest Lender. HSBC Holdings Plc’s Saudi Arabian unit agreed to buy a local rival part-owned by Royal Bank of Scotland Group Plc in a $5 billion deal to create the kingdom’s third-largest lender.  [Bloomberg]
• Amazon Warehouse Workers Lose Bonuses, Stock Awards for Raises. com Inc. is eliminating monthly bonuses and stock awards for warehouse workers and other hourly employees after the company pledged this week to raise pay to at least $15 an hour.  [Bloomberg]
• HP Inc. Gives Upbeat 2019 Forecast on Strong PC Demand. HP Inc. gave an upbeat profit forecast for fiscal 2019, signaling that the world’s largest maker of personal computers will continue to see robust demand for its growing product lineup.  [Bloomberg]
• Indonesia's Traveloka in Talks to Raise $400Mn. , Southeast Asia’s largest online travel startup, is in talks to raise about $400mn from new and existing investors to accelerate its expansion. The money will be used to push beyond traditional airline tickets and hotel bookings into activities for travelers like concerts or amusement parks.  [Bloomberg]
• Ganfeng Lithium Priced at Lower Limit $16.5, Expected to Raise $3.3B. The world's largest lithium producer Ganfeng Lithium ANFENG LITHIUM was priced at $16.5 per share in public offering (the lower limit of the offer price range $16.5-26.5) to raise $3.3 billion, IFR Asia cited sources.   [AAStocks] 
• Tencent Adds Stake in Bilibili for About US$320M. Tencent will subscribe for 25.0645 million new shares in bilibili at US$318 million (around HK$2.492 billion). After the transaction completes, Tencent's shareholdings will increase to about 12.3%.  [AAStocks] 
• Li Ka-shing, Li Tzar Kuoi Add Stakes in CK Asset. The co held as to 50% each by Li Ka-shing, the senior adviser of CKH series of cos, and Li Tzar Kuoi, Victor, Chairman of CK Asset, increased 3.8485mn shares in total on 26-Sep, 27-Sep and 2-Oct on open market, at average prices of $59.9704, $59.9405 and $57.8341/shr, said its spokesman.  [AAStocks] 
• A GOODDOCTOR, CR Sanjiu to Launch New Medical Retail Biz Model. PA GOODDOCTOR announced that it has entered into a strategic cooperation agreement with CR Sanjiu. Consolidating their competitive edges and resources, both companies will join hands to create a new 'Internet+Healthcare' business model.  [AAStocks] 
• ZTE: US Court Modifies Corporate Probation Conditions. ZTE announced that the United States District Court for Northern District of Texas issued an order on 3 Oct 2018 (US time) modifying the conditions of the company’s corporate probation as described in the agreement which became effective on 22 Mar 2017 (US time) upon approval by the court.   [AAStocks] 
• Dongfeng Group Proposes Issuance of Euro Denominated Unsecured Notes. Dongeng Group announced the proposed issuance of unsecured notes denominated in Euro. The net proceeds will be used to refinance the existing indebtedness and working capital and for general corporate purposes.  [AAStocks] 
• Dell Says It Met With Banks About an IPO ‘Contingency Plan’. Dell Technologies Inc., the world’s largest private technology company, met with investment banks to discuss a conventional initial public offering, among other options,stoking doubts about its ability to return to public markets through a $21.7 billion deal that has drawn investor scrutiny.  [Bloomberg]