HALISTER: JPMorgan, HSBC, Credit Agricole Fined EU485.5m in Euribor Case

JPMorgan, HSBC, Credit Agricole Fined EU485.5m in Euribor Case

(Bloomberg) -- JPMorgan, HSBC and Credit Agricole are fined a total of EU485.5m by the European Commission for rigging the Euribor benchmark.
  • JPMorgan is fined EU337.2m
  • HSBC is fined EU33.6m
  • Credit Agricole is fined EU114.7m
  • The three banks colluded on euro interest rate derivative pricing elements, and exchanged sensitive information, in breach of EU antitrust rules, commission says in e-mailed statement
  • “Banks have to respect EU competition rules just like any other company operating in the Single Market,” EU Competition Commissioner Margrethe Vestager says
  • Euribor, the euro interbank offered rate, and a similar benchmark Libor, the London interbank offered rate, gauge banks’ estimated cost of borrowing over different periods of time. The rates are a benchmark used to calculate interest payments for financial products including mortgages.
  • SEE: JPMorgan, HSBC Said to Face EU Antitrust Fines Over Euribor NSN OGOZ076JIJV2
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
HSBA LN (HSBC Holdings PLC)
JPM US (JPMorgan Chase & Co)
ACA FP (Credit Agricole SA)
0629846D BB (European Commission)
BARC LN (Barclays PLC)

People
Christian Bittar (Deutsche Bank AG)
Margrethe Vestager (European Commission)
Michael Zrihen (Credit Agricole Corporate & Investment Bank SA)
Philippe Moryoussef (Nomura Holdings Inc)
Stephane Esper (Societe Generale SA)

To de-activate this alert, click here

UUID: 7947283

HALISTER1: Bund/UST Spread-Narrowing Momentum Builds, Tests 201bps Hurdle

Bund/UST Spread-Narrowing Momentum Builds, Tests 201bps Hurdle

(Bloomberg) -- Bund/UST 10Y spread continues to carve a bottom after widening momentum abated in late November, with key 216bps TD risk level respected ahead of crucial ECB meeting this week, Bloomberg technical analyst Sejul Gokal writes.
  • See chart here; spread at 202bps vs 215bps seen late Nov.
  • Tactical compression faces potential widening interest at 201bps (21-DMA, Fibonacci); however, scope for much deeper correction to 191bps which could bring daily and weekly momentum valuations to more neutral readings
  • Daily MACD has turned up, and produced a bull cross this week, adding to tightening impetus
  • Spread compression levels in focus at 195-194bps and 191bps
  • Potential tightening catalyst could come from ECB this week, should they fail to exceed already dovish market expectations
    • Anything less than 6-month QE extension at current EU80b per month could bring echoes of Dec. 3, 2015, when underwhelming stimulus sent bond yields and the euro surging
      • Bunds may still come under pressure should ECB deliver on the above, but send a signal that stimulus will eventually end as per a report early in the month
    • Comparison of January skew today vs Dec. 1 (date of report) shows low delta calls have come off, widening the low delta Bund skew for puts (click here for skew comparisons) as topside optimism fades
  • NOTE: Sejul Gokal is a technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

To de-activate this alert, click here

UUID: 7947283