Halister News

(Bloomberg) -- BofAML January Credit Investor Survey showed high-yield investors increased overweight positioning and reduced their cash levels to the lowest reading since at least 2011, high yield strategists led by Michael Contopoulos write in note.

• BofAML cautions against this over-stretching and recommends that investors pare their risk exposure; reiterates its earlier recommendation of tactically short position
• The combination of “significant deviation from fundamentals and low cash levels is a recipe for trouble in the near- term”
• Survey showed significant overweight positioning in Energy for the first time since September 2014; BofAML suggests investors move to market-weight stance on the sector as spreads are now in line with the overall index
• While there is optimism about the possibility for reduced regulation, lower taxes, and higher infrastructure spending in 2H17 and early 2018, a lack of a clear plan of execution undermines optimism

(Bloomberg) -- Output of factories, mines and utilities seen rising 0.6% in Dec. after falling 0.4% in Nov. (forecast range -0.2% to +1.2%); measures volume of production.

• Dec. employment report “revealed favorable factory trends": Bloomberg Intelligence

(Bloomberg) -- Consumer price index seen rising 0.3% m/m in Dec. after increasing 0.2% in Nov. (forecast range 0.2% to 0.5%); measures prices paid for consumer goods and services.

• Energy prices seen driving CPI higher; data unlikely to alter Fed assessment of inflation: Bloomberg Intelligence

(Bloomberg) -- Citigroup 4Q EPS $1.14, est. $1.12.

• 4Q fixed income trading rev. $3.01b vs est. $2.83b
• 4Q equity markets trading rev. $694m vs est. $708.0m
• 4Q investment banking rev. $1.13b vs est. $1.02b
• 4Q rev. ex CVA/DVA down 9% y/y, driven by continued Citi Holdings wind down; partially offset by 6% increase in Citicorp rev. 
  • Citi Holdings rev. $657m, down 79% y/y amid absence of net gains from asset sales
  • Quarter is last time C will report Citi Holding results separately; assets now 3% of balance sheet 
• 4Q NIM 2.79% vs 2.86% reported in 3Q statement
• 4Q operating expenses down 9% y/y to $10.1b
• Cost of credit $1.8b, down 29% amid absence of significant loan loss reserve builds related to energy exposure in ICG
• Loans $624b, up 1% y/y
• Tier 1 common ratio 12.5% vs 12.6% q/q
  • SLR 7.2% vs 7.4%
• Return on avg. common equity 6.2% vs 6.8% q/q
• BV/shr $74.26 vs $74.51 q/q; TBV/shr $64.57 vs $64.71
• Bought back 79m shares in 4Q, 196m in 2016
• NOTE: Jan. 17, Trump Tax Comments May Be Spooking the Market, Analysts Say
• Call 11am 866-516-9582 pw 31487788

To contact the reporter on this story: Felice Maranz in New York at fmaranz@bloomberg.net To contact the editors responsible for this story: Arie Shapira at ashapira3@bloomberg.net Will Daley