Halister News

(Bloomberg) -- SAP SE reported 4Q sales of EU 6.7 bln that met average analyst est. and raised 2020 guidance to as much as EU 29 bln.

• Co. raised 2017 sales guidance to EU 23.2 bln to EU 23.6 bln
• 4Q non-IFRS op. profit was EU 2.37 bln vs. EU 2.38 bln est.
• 4Q software license rev. was EU 2.18 bln vs. EU 2.15 bln consensus est. gathered by Barclays
• Cloud subscription and support rev 4Q was EU 827 mln vs. EU 828 mln consensus est. gathered by Barclays
• 2017 guidance for EU 6.8 bln to EU 7 bln operating profit. Prior outlook was EU 6.7 bln to EU 7 bln profit

(Bloomberg) -- Philips 4Q sales EU7.24b vs est. EU7.32b (7 ests.); sales growth of 5% in the HealthTech portfolio and group consolidated comparable sales growth of 3%.

• 4Q Adj. Ebita EU1.00b vs est. EU1.02b (5 ests.)
• 4Q net income EU640m vs net loss of EU39m y/y
• 4Q operating cash flow EU1.1b vs EU956m y/y; free cash flow of EU843m
• Proposal to maintain dividend at EU0.80 per share
• Call at 10am CET
• NOTE PREVIEW PHILIPS 4Q: Look For Orders, Margin Execution
• Emailed statement

--FRED PALS

(Bloomberg) -- Favors Turkish lira govt bonds maturing in 2023, London-based strategist Luis Costa writes in an e-mailed note dated Monday.

• Adds “0.5% TURKGB cash overweight” to model portfolio
• Closes remaining short TRY/ZAR position, booking 13% profit, and takes short TRY position “back to neutral”
• Central bank “has been forced into a more prudent line of monetary policy,” and may be “right in the middle” of a revision to its interest rate policy
  • Cites increase to weighted average cost of funding since late December; the bank may opt for “further tweaks on its funding channels mix”
• READ: Turkey Seen Raising Rates After ‘Backdoor’ Moves to Bolster Lira

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

• To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery

UPGRADES

• Shah Pulse Mill
  • Long-term rating raised to BB- from B+ at Crisil
  • Cites improvement in liquidity with reduction in working capital needs and unsecured loans from owner
• Shree Bhagwati Samarth Food Products
  • Long-term rating raised to B+ from B at Crisil
  • Cites company’s healthy business risk profile

(Bloomberg) -- U.S. 10-yr yield is retesting 50-DMA support and momentum indicators are turning lower, indicating potential downside near term after a failed attempt to break below that level last week, Bloomberg strategist David Finnerty writes.

• MACD has formed a series of lower peaks and looks set to fall below zero and signal line
• 10-year yield tested and failed to breach the 50-DMA last week, reinforcing the resilient support
• Confirmation of a downturn will need a decisive breach of 50-DMA support, currently at 2.4026% and a close below the Jan. 17 low of 2.3036%
• U.S. yields have been a primary driver of dollar strength and any further decline may see APAC currencies extend recent gains against the greenback
• U.S. 10-year yield is steady at 2.4062% after dropping 7 bps Monday
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.