Shares of Rivian Automotive hit a new 52-week low | 5 January 2023 | Daily Morning Note

The Daily Morning Note is a round-up of local and global business headlines that you need to know to get ahead of your day.

Shares of Rivian Automotive hit a new 52-week low on Wednesday after the company missed its 25,000-unit production target for last year.


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Key takeaways

Recommendations

Mapletree Pan Asia Commercial Trust (SGX: N2IU)

Analyst: Zane Aw (Current Price: S$1.68) – TECHNICAL BUY

Buy price: $1.68 Stop loss: S$1.64 Take profit: S$1.78

Summary

Singapore shares extended a second day of flattish trading on Wednesday, amid a mixed showing across the region. The Straits Times Index shed 0.1 per cent, or 3.34 points to close at 3,242.46.

Wall Street stocks closed higher on Wednesday, snapping a brief losing streak as markets shrugged off messaging from the Federal Reserve’s most recent meeting that stressed its commitment to lowering inflation. Fed policymakers do not expect it will be “appropriate” to start cutting interest rates this year.

Singapore News

Lian Beng Group Ltd announced that the wholly-owned subsidiary of the company, L.S. Construction Pte Ltd, has secured a new construction project. With the inclusion of this project, the group’s construction order book in Singapore stands at approximately S$1.9 billion, which will provide a sustainable flow of activity through FY2027.

The managers of ARA US Hospitality Trust have proposed to acquire a 119-room Hilton-branded hotel property in the US for US$29 million. The proposed acquisition is expected to be completed in the first quarter of 2023, subject to an independent valuation being commissioned.

Leverage ratios should remain below the mid-40 per cent levels at Keppel Pacific Oak US Reit and Prime US Reit, according to market watchers. Both are Singapore-listed real estate investment trusts (S-Reits) with office assets in the United States, where occupancy ratios remain below pre-pandemic levels on average.

Keppel Capital, through its China logistics property fund, has partnered Chinese logistic park developer and operator BLOGIS to acquire the fund’s first asset, a grade-A high-standard warehouse, located in Dongxihu, Wuhan, China. The Wuhan warehouse spans 70,000 sq m and serves e-commerce, third-party logistics and coldchain sectors. Managed by Keppel Capital China (SG), the fund, together with BLOGIS, has committed to a combined asset under management (AUM) of approximately RMB 3,200 million, or S$634 million.

US News

Federal Reserve officials offered uncharacteristically blunt words of warning to investors that cautioned against underestimating the central bank’s determination to hold interest rates at higher levels to bring down inflation. Minutes of the Fed’s policy meeting last month, released Wednesday, highlighted the tricky communications task that has vexed the central bank over the past six months.

Chinese regulators approved a plan by billionaire Jack Ma’s Ant Group to raise 10.5 billion yuan, or S$1.5 billion, for its consumer unit. The China Banking and Insurance Regulatory Commission division in Chongqing green-lit the company’s plan to lift its capital to 18.5 billion yuan. Ant, which contributed 5.25 billion yuan as part of the plan, will control half of its shares after the deal, while a unit owned by the city of Hangzhou will hold 10 per cent, becoming the second-biggest shareholder.

Salesforce Inc. is laying off 10% of its workforce and reducing its office space in certain markets. It said it will incur about $1.4 billion to $2.1 billion in charges from the restructuring plan, with up to $1 billion in the company’s current quarter. Co-Chief Executive Marc Benioff said that the cuts come as many of the company’s customers are taking a more cautious approach to spending.

Shares of Rivian Automotive hit a new 52-week low on Wednesday after the company missed its 25,000-unit production target for last year. The EV startup late Tuesday said it produced 24,337 vehicles in 2022, of which 20,332 vehicles were delivered to customers during the year.

A top European Union privacy regulator ruled that Meta Platforms Inc. can’t use its contracts with Facebook and Instagram users to justify sending them ads based on their online activity. Meta said it disagrees with the ruling and plans to appeal it. Ireland’s Data Protection Commission imposed fines of 390 million euros, or S$411 million, on Meta, saying that the company violated EU privacy laws.


Microsoft is in advanced talks to invest in Gatik, a California-based autonomous driving startup, under its cloud partnership with the company. Microsoft plans to invest over US$10 million in a financing round that values Gatik at more than US$700 million.

     
     

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