MONEY MASTER

Singapore’s inflation eased in February, offering temporary relief before the  Middle East conflict triggered a surge in energy prices , which is expected to reshape the near-term outlook. Headline Inflation Moderates Singapore’s  consumer price index (CPI) rose 1.2% year-on-year in February , down from  1.4% in January , in line with expectations. However, underlying price pressures showed signs of firming: Core inflation rose to 1.4% YoY , up from  1.0% previously This marked the  highest level since December 2024 The data suggests that while headline inflation cooled,  core price momentum is gradually building . Cost Pressures Emerging Across Key Sectors Price increases were driven by several essential categories: Transport (+2.7%)  — reflecting higher mobility and cost pressures Food (+1.6%)  — indicating steady consumption demand Recreation & culture (+1.9%) Meanwhile, housing and utilities remained relatively subdued at  +0.3% , hel...

US equities declined sharply as  surging oil prices and persistent inflation concerns  weighed on investor sentiment, following the Federal Reserve’s decision to  hold interest rates steady . Major Indices Fall Amid Inflation Fears Wall Street closed lower across the board: Dow Jones Industrial Average  fell  1.6% S&P 500 Index  dropped  1.4% Nasdaq Composite Index  declined  1.5% The selloff was driven by a combination of  rising energy prices and a hawkish Fed outlook , which reinforced expectations of  higher-for-longer interest rates . Oil Surge Fuels Market Volatility Energy markets spiked following renewed attacks on  Middle East oil infrastructure . Brent crude  jumped  5.4% to US$108.96 WTI crude  rose  1.8% to US$97.98 Higher oil prices are raising concerns about  inflation persistence , particularly as supply disruptions threaten global energy flows. Fed Signals Prolonged Inflation Risks T...

Banks lead, ringgit firm, risk appetite improves Market snapshot FBM KLCI  rose  1.56%  to  1,771.25 , its strongest one-day gain in weeks Broader market  positive: FBM Emas  +1.22% , Mid 70  +0.47% , Small Cap  +0.08% Market breadth  improved materially:  712 gainers vs 516 losers Turnover  picked up to  RM4.47bn , signalling renewed institutional participation FX backdrop USD/MYR  strengthened to  3.952 , reinforcing foreign inflow confidence Ringgit strength continues to anchor banking and domestic-demand names Key movers Top gainer (KLCI):   CIMB Group Holdings Bhd   +3.83% Other notable gainers: Sime Darby Bhd   +3.72% Press Metal Aluminium Holdings Bhd   +2.91% Sunway Bhd   +2.81% Public Bank Bhd   +2.67% Top loser (KLCI):   Axiata Group Bhd   −5.62% , extending YTD underperformance Most active by value:   Malayan Banking Bhd , turnover  RM463.7m ,  +2.26% S...

Foreign investors extended their buying streak on Bursa Malaysia last week with  net inflows of RM492.1 million , according to MBSB Investment Bank Bhd (MBSB IB). This marks the second consecutive week of net foreign buying. Market Snapshot Foreign investors recorded  RM492.1m net inflows  last week, second week of buying. Strongest inflows on  Wednesday (RM348.7m)  and  Friday (RM205.3m) ; only outflow on Thursday (RM61.9m). Top inflow sectors:  Transportation & logistics (RM131.8m) ,  Industrial products & services (RM126.9m) ,  Technology (RM117.1m) . Outflows seen in  Financial services (–RM154.7m)  and  Healthcare (–RM38.1m) . Local institutions (–RM337.6m) and retailers (–RM159.5m) remained net sellers. Weekly Breakdown Trading was shortened to three days due to the Malaysia Day holiday. Wednesday (Sept 17): Largest inflow of RM348.7 million. Friday (Sept 19): Inflow of RM205.3 million. Thursday (Sept 18): Only ou...

  Key Takeaways: Dimon remains cautious on the US economy, citing the  lagging impact of tariffs, immigration, geopolitics, and fiscal policy . He warned that  expected Fed rate cuts will be immaterial  amid weakening conditions. JPMorgan is preparing for more  banking sector consolidation , while continuing its European digital expansion. Dimon’s Economic Concerns JPMorgan Chase CEO Jamie Dimon said the  full effects of Trump-era tariffs and new geopolitical headwinds  have yet to materialize, stressing that these risks often unfold over long cycles. Speaking on the  Office Hours: Business Edition podcast, he cautioned investors not to underestimate the delayed impact of tariffs, immigration pressures, and fiscal measures from Washington. “The economy is weakening,” Dimon said separately on CNBC, adding that Federal Reserve interest-rate cuts will have only a limited effect in countering the slowdown. Market and Policy Outlook While US GDP growth...

Tech stocks retreat as rhetoric heats up, though precise timing remains vague President  Donald Trump  told reporters aboard Air Force One that U.S. tariffs on certain imports—including chips and steel—could eventually reach  200% to 300% . “If they don’t open here, they have to pay… in some cases, 200%, 300%,” he said, adding that initial rates would be lower before stepping up over time. Wall Street Reacts Semiconductor giants slid:  AMD  down ~1.3%,  Broadcom  ~1.1%,  NVIDIA  ~0.9%. The  Nasdaq Composite  dipped ~0.1% amid growing concern over sudden tariff risk. High Stakes for U.S. Manufacturing Previous remarks indicated a ~100% tariff on  ON Semiconductor  imports—with exemptions tied to companies relocating production to the U.S. With soaring proposed tariffs, export-heavy chipmakers could face staggering cost barriers unless policy clarifies quickly. What to Watch Tariff architecture : Trump said specifics might a...

Share Price Performance China Express Airlines Co., Ltd. (SZSE:002928) has rallied more than 10% in recent months, pushing its share price close to its 52-week high. With strong analyst coverage, much of the positive news flow may already be priced in. Valuation Assessment Based on Simply Wall St’s valuation model, the stock currently trades at around 15% below its estimated intrinsic value of CN¥10.61. This suggests the shares are fairly valued, offering limited upside from current levels. The company’s low beta also indicates relatively stable price movements compared to the broader market. Growth Prospects The outlook for China Express Airlines is robust, with profits expected to more than double over the next two years. Higher projected cash flows could support a stronger valuation over time, underpinned by operational expansion and demand recovery in the aviation sector. Investor Takeaway Current shareholders : Much of the anticipated growth appears priced in, but the long-term ou...

Geopolitical Risk Alert: U.S.–EU Trade Tensions Escalate The  European Union  is drawing up a  new retaliatory tariff list worth $84B  in American goods — including aircraft, alcohol, coffee, and medical devices — in response to  President Trump's threat of 30% blanket tariffs  on EU imports, set to begin  Aug. 1  if no trade deal is reached. What’s in the EU’s Tariff Crosshairs? $77B industrial goods : aircraft, autos, machinery, plastics, medical devices $7B food & agri : wine, beer, spirits, fruits, coffee Potential escalation : Legal tools like the  anticoercion instrument  could target: U.S. digital services & advertising IP rights restrictions Public tender bans on U.S. firms Timeline & Negotiation Status A prior  $24B retaliation package  was paused in April, and remains on hold until early August. The new  $84B package  has been trimmed down from $111B after consultations and still needs  form...

In the  second quarter of 2025 , U.S. companies experienced their  worst wave of credit downgrades since early 2021 , with  US$94 billion  of high-grade debt downgraded — outpacing upgrades for the first time in over four years. The downgrade trend is setting off alarms across Wall Street, as investors begin to question whether corporate bonds are priced too optimistically given today’s economic uncertainty. Key Stats That Matter Downgrades:  US$94 billion Upgrades:  US$78 billion Fallen Angels (cut to junk):  US$34 billion Rising Stars (raised to investment grade):  US$3 billion High-grade bond spreads:  ~0.8% (vs. 1.5% long-term avg) High-yield bond spreads:  ~2.8% (vs. 4.9% long-term avg) “Credit picking is super important now. The vulnerability to downgrades is higher.” —  Jon Curran, Principal Asset Management Warning Signs Are Flashing More companies are deferring interest payments.  9% of global high-yield borrowers are ...

The term  “内卷” (neijuan) , or “involution,” refers to relentless competition that leads to stagnation instead of progress—think firms slashing prices to survive rather than innovate or grow. This phenomenon has become especially toxic in China’s high-stakes sectors like: Solar energy New energy vehicles (NEVs) Steel, cement, aluminum Chemicals Even downstream consumer sectors like  food and healthcare Stock Market Response: A-Shares Take the Lead Investors are starting to price in change. July saw the  CSI 300 Index  (onshore A-shares)  outperform the Hang Seng China Enterprises Index , marking a turnaround in sentiment. Notable winners: Liuzhou Iron & Steel  (+50%) Angang Steel  (+16%) Xinjiang Daqo New Energy  &  Tongwei  (+19%+) Cement, glass, and chemical stocks  also rallied Morgan Stanley  even shifted its preference toward  onshore equities , citing improved confidence. Will This Be 2015 All Over Again? Vete...

Despite rising global uncertainty triggered by new rounds of tariffs,  Wall Street seems to have its eyes set on something else — Big Tech's unstoppable momentum.  The  S&P 500  rose by  0.6% , powered by mega-cap tech names, while the  Nasdaq 100  added  0.7% . Even the  Dow Jones  is creeping toward all-time highs. What’s fueling this rally? AI Stocks Aren’t Slowing Down One of the biggest stories of the day is  Nvidia briefly touching a $4 trillion valuation  — the first company in history to reach that milestone. Riding the AI wave, Microsoft also gained after a bullish upgrade by Oppenheimer, citing fast-growing AI revenue. This isn't just hype. As long as artificial intelligence continues to attract enterprise and consumer demand, companies that build or support this infrastructure —  chipmakers, cloud providers, and AI software firms  — will remain in the spotlight. Rate Cuts > Tariff Fears? With Preside...

The European Union (EU) is in the final stages of negotiating a  framework trade agreement with the United States , aiming to avert steep tariff hikes set to take effect on  August 1 . According to sources familiar with the matter, the bloc is urgently working to  lock in a 10% tariff rate  across a defined basket of exports, providing temporary relief as both sides pursue a more comprehensive long-term trade deal. Key Sectors in Focus The EU is pushing for exemptions or reduced tariffs on high-value goods including: Aircraft and aircraft parts  (critical for Airbus and European aerospace suppliers) Wine and spirits  (major exports from France, Italy, and Spain) However, challenges remain over US-imposed  25% tariffs on cars and auto parts  and  50% tariffs on steel and aluminum . Although a breakthrough on these fronts appears unlikely in the short term, both sides are exploring a  “tariff offset mechanism”  that would allow select...

Global Market Snapshot S&P 500 : 🔼 +0.47% |  New record close Nasdaq : 🔼 +0.94% |  3rd record high this year Dow Jones : 🔽 -0.02% | Slight pullback 10-Year US Treasury Yield : ⬆ 4.29% Focus : Thursday’s US  jobs report  could  make or break  rate-cut expectations. Big Tech Surge : Apple : +2.2% Nvidia : +2.6% Tesla : +5% — despite a 13% drop in deliveries, investors are betting on  robotaxi and AI upside . Investor Insight : The “Magnificent Seven” are still driving this market. But cracks are forming in the labor market — meaning  rate cut bets  are back on the table. Malaysia Market Recap KLCI : 🔼 +8.68 pts to  1,550.21 USD/MYR : ⬆ 160 pips to 4.2260 (USD rebound) MGS 10Y Yield : Steady at 3.45% Sector Leaders : 🚧 Construction: +1.29% ✈️ Transportation: +0.91% 🔋 Energy: +0.76% 🌴 Plantation: -0.08% (only laggard) Local View : KLCI rose with strength in  infrastructure, logistics , and  energy  — hinting at rota...

  What's Happening: Trump is likely  ending the 90-day tariff pause  on July 9. Instead of extending negotiations, he plans to  impose tariffs unilaterally , ranging from  20%-50% , depending on trade deficits and how countries treat U.S. interests. Potential Market Impact: Manufacturing & Industrial:  New tariffs could increase  input costs , squeezing margins. Agriculture:  Higher tariffs may invite  retaliatory measures , hurting U.S. farm exports. Retail & Consumer:  Potential rise in  imported goods prices , adding inflationary pressures. Currency Markets:  Trade tensions often push  USD higher , weigh on emerging market currencies. Key Dates: July 9:  Watch for formal announcement or extension. Money Master Take: Tariffs could be used as a tool for  negotiation leverage  ahead of elections. Monitor companies with  large overseas exposure , particularly in China, India, EU markets. Keep an ...

  Corporate Highlights: Earnings, Dividends, and Key Developments Across Sectors Tenaga Nasional Bhd (TNB): Net profit surged  85%  in  3QFY2024  to  RM1.58 billion , driven by  RM1.12 billion forex gains . Quarterly revenue rose  6.6%  to  RM14.35 billion  on higher electricity sales. CIMB Group: 3QFY2024  net profit increased nearly  10%  to  RM2.03 billion , bolstered by growth in  net interest income  (1.8%) and  non-interest income  (28%). Alliance Bank: Net profit edged up  2.5%  to  RM189.91 million  in  2QFY2025 , while revenue hit a record  RM605.65 million , up  14.7%  year-on-year. Declared a  9.50 sen  interim dividend. Hong Leong Financial Group (HLFG): Net profit rose  14%  to  RM847.67 million  in  1QFY2025 , while subsidiary  Hong Leong Bank  reported a  5.8% increase  in net profit t...