KUALA LUMPUR, Oct 19 — The ringgit is expected to trade on a cautious note next week on continuous global trade uncertainties involving major world economies. An analyst said the United States (US)-China trade tensions has continued to dampen the…
KUALA LUMPUR, Oct 18 — The ringgit ended on a lower note today due to global uncertainties as well as declining oil prices. At 6pm, the local note was quoted at 4.1850/1880 against the greenback compared with yesterday’s close of 4.1780/1830….
LONDON, Oct 18 — The euro was hovering today around the seven-week high it reached against the US dollar yesterday as hopes that a Brexit deal between Britain and the European Union could prevent an economic recession in the euro zone. The common…
SINGAPORE: Cathay Pacific Airways Ltd has shelved plans for its first U.S. dollar debt deal in 23 years, the airline said on Friday, after sources told Reuters that global investors had baulked at the pricing due to civil unrest in Hong Kong.
The airline, the biggest corporate casualty of widespread anti-government protests in the Asian financial hub, on Friday lowered its second-half profit expectations, citing “incredibly challenging” conditions in its home market.
Cathay had started meeting investors in Hong Kong and Singapore on Sept. 24 after it mandated four banks to explore carrying out a U.S. dollar denominated bond, according to a term sheet issued at the time, seen by Reuters.
It would have been the first U.S. dollar debt deal for Cathay since 1996 and had been touted as a landmark transaction for the airline given all of its debt is denominated in Hong Kong dollars.
The issuance was to be unrated, and two sources with knowledge of the matter said that Cathay was willing to pay 200 basis points over the U.S. Treasuries rate to secure three-year or five-year funding, with the size and term of the placement dependent on demand.
However, investors demanded a higher price of at least 300 basis points over U.S. Treasuries, which made the deal more expensive for Cathay, said the sources, who were not authorised to speak publicly about the matter.
Cathay’s term sheet had said the transaction would be reliant on market conditions. A Cathay spokesman on Friday said the Hong Kong dollar private placement market was providing more funding opportunities and a debt issuance in that market was completed last month. “We will continue to monitor the U.S. dollar bond market in future,“ he said in a statement.
Dealogic data showed that Cathay raised $102 million in October and $64 million in May through Hong Kong dollar denominated deals.
The airline has only carried out 12 bond transactions in the past decade and all were priced in Hong Kong dollars.
Cathay had mandated Bank of America Merrill Lynch, BNP Paribas, Deutsche Bank and HSBC to work on the shelved U.S. dollar bond deal. – Reuters
TOKYO, Oct 18 — Tokyo's benchmark Nikkei index rose to its highest level in more than 10 months following rallies on Wall Street, though trade was cautious ahead of a British vote on a new Brexit deal. The Nikkei 225 index rose 0.18 per cent, or…
SHANGHAI, Oct 18 — Asian stocks edged higher today, tracking the global lift in sentiment after the UK and the European Union struck a long-awaited Brexit deal, but concern about the Chinese economy is likely to cap gains with data expected to…
WASHINGTON, Oct 18 — US homebuilding tumbled from more than a 12-year high in September, but single-family home construction rose for a fourth straight month, suggesting the housing market remains supported by lower mortgage rates even as the…
TOKYO, Oct 18 — The British pound traded near a five-month high against the US dollar and the euro after British Prime Minister Boris Johnson and European Union leaders agreed a new deal for Britain to exit the bloc. Sterling's gains on the US…
NEW YORK, Oct 17 — The US dollar fell against the euro today as the common currency got a lift from the European Union and Britain striking a long-awaited Brexit deal. Britain clinched an eleventh-hour deal on its exit from the EU today, more than…
KUALA LUMPUR: The ringgit opened higher against the US dollar on renewed interest from investors after the US retail sales showed a negative data figure, a dealer said.
At 9am, the local note was at 4.1880/1920 versus the greenback from 4.1935/1965 recorded at Wednesday’s closing.
The US Commerce Department yesterday released its retail and food services which declined by 0.3% to US$525.6 billion compared with the previous month, its the first retreat in seven months.
This came after the greenback received a boost over the latest US-China trade truce.
However, against a basket of other currencies, the local note was traded mostly lower except with the yen, which rose to 3.8525/8572 from 3.8575/8613.
It depreciated against the Singapore dollar to 3.0576/0607 from 3.0560/0585, weakened against the British pound to 5.3728/3783 from 5.3513/3568 and slipped to 4.6411/6460 from 4.6288/6338 when compared with the euro. – Bernama