HALISTER1: DBRS: RBC Posts Lower Q4 Results Driven by Lower Capital Markets Revenues, Higher Expenses

DBRS: RBC Posts Lower Q4 Results Driven by Lower Capital Markets Revenues, Higher Expenses

Alert: HALISTER1
Source: DBR (Dominion Bond Rating Service)

People
Peter Stavropoulos (DBRS Ltd)

Topics
Credit Analysis Research
Credit Research
Earnings Review Research
Fixed Income Research
Investment Research

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UUID: 7947283

HALISTER1: Repo Softness Reflects ‘Much More Cash’ in the Market: Wedbush

Repo Softness Reflects ‘Much More Cash’ in the Market: Wedbush

(Bloomberg) -- While GC repo rates tend to rise after the outflow of GSE cash from the market, money market reform has created an anomaly, as record assets in government funds help keep repo down, Wedbush Securities managing director Scott Skyrm says in note.
  • “There’s no reason to expect any fundamental change anytime soon”
    • “GSE cash left the market and rates are still soft. New Treasuries settled yesterday and rates are still soft. Cash moved out of the repo market, and, you guessed it, rates are still soft”
  • NOTE: O/N GC repo trading around 0.30/0.28, ICAP data show
  • Related story: GC Repo Remains Near RRP as Investors Lack Options for Month-End
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Scott Skyrm (Wedbush Securities Inc)

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UUID: 7947283

HALISTER1: Avg Respondent a Buyer of 10Y USTs at 2.63% Yield: BMO Survey

Avg Respondent a Buyer of 10Y USTs at 2.63% Yield: BMO Survey

(Bloomberg) -- Just 39% of respondents would buy the dip in USTs, the lowest since January, while 51% were willing to sell a bounce, the most since March 2014, BMO strategist Ian Lyngen writes in summary of November survey results.
  • If market sold off, 51% of respondents would not take action
  • Results for direction of 5s showed that 42% expect the next 15bp will be higher, while 41% expect it will be lower; divergence “suggests some hope” that current selloff will bottom out in near-term
  • Avg respondent thinks 3.26% y/y avg hourly earnings would lead Fed to worry about wage inflation
  • Top issue for USTs next year was almost unanimously “Trump’s fiscal policies and their success,” as well as reflation, USD, global monetary policy and China
  • NOTE: Avg hourly earnings, as well as NFP, unemployment rate and avg weekly hours reports due Dec. 2 at 8:30am ET
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ian Lyngen (Bank of Montreal)

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UUID: 7947283

HALISTER: Starbucks Falls 4.3%; Names Johnson CEO, Succeeding Schultz

Starbucks Falls 4.3%; Names Johnson CEO, Succeeding Schultz

(Bloomberg) -- Starbucks says COO Kevin Johnson to assume the role and responsibilities of president and CEO, effective April 3, 2017.
  • Statement:Link
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
SBUX US (Starbucks Corp)

People
Kevin Johnson (Starbucks Corp)

Topics
Who's News - People
Management Changes

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UUID: 7947283

(2) *STARBUCKS NAMES KEVIN JOHNSON CEO, SCHULTZ EXECUTIVE CHAIRMAN

*STARBUCKS NAMES KEVIN JOHNSON CEO, SCHULTZ EXECUTIVE CHAIRMAN

Alerts: HALISTER, HALISTER1
Source: BN (Bloomberg News)

Tickers
SBUX US (Starbucks Corp)

People
Kevin Johnson (Starbucks Corp)
Barack Obama (United States of America)
George Bush (United States of America)
Howard Schultz (Starbucks Corp)

Topics
Management Changes
Who's News - People

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UUID: 7947283

HALISTER1: ‘Powerful’ USD Appreciation May Destabilize Risk Assets: Lombard

‘Powerful’ USD Appreciation May Destabilize Risk Assets: Lombard

(Bloomberg) -- Another “powerful appreciation” in USD may undermine “global reflation story” and cause “another wobble in risk assets,” Lombard Street chief economist Dario Perkins says in note.
  • As USD appreciates, balance sheets of investors who have borrowed in USD deteriorate and their credit worthiness declines, which prompts a tightening in global financial conditions
  • USD exchange rate has become a “barometer of risk taking,” replacing the VIX as a “global ‘fear indicator’”
  • Surge in USD “potentially more dangerous,” since there’s a $10t offshore USD debt market, or 13% of GDP
    • Global borrowing has reached $152t, record 225% of GDP
  • USD strength may intensify global dollar shortage; already talk of USD liquidity squeeze before Trump’s election, “with clear tensions in money markets”
    • Unclear how long impact of regulatory changes will persist, “not necessarily a trivial manner”
    • If Trump succeeds in repatriating corporate profits, pressure on USD liquidity may intensify
    • In extreme situation, Fed may have to take action, mainly by removing the stigma on its liquidity operations
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Dario Perkins (Lombard Street Research Ltd)

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UUID: 7947283

HALISTER1: Ultra-Long UST Deliberation Could Have to Wait Until May: RBS

Ultra-Long UST Deliberation Could Have to Wait Until May: RBS

(Bloomberg) -- TBAC may not discuss ultra-long UST until May because of the time needed for the Treasury Secretary nominee to be confirmed, get settled into the new role and appoint the people involved in the decision, RBS strategist Blake Gwinn says in note.
  • Treasury has also been stressing need to increase bill supply, while “pulling back on the WAM extension rhetoric”
  • “Workable option” may be zero-coupon, reverse inquiry 50Y issue, though probably unlikely Treasury moves in this direction in the near future
  • TBAC had discussed 50Y bond in Aug. 2014 and Feb. 2011, though got “hung up” on several issues:
    • Method of issuance, because a traditional Dutch auction may not work; secondary market liquidity, since it would likely be a “buy-and-hold investor base”; and STRIPS, because duration of coupon securities “tapers off rapidly” outside of 30yrs
    • A 50Y security may not add much duration over the 30Y, though would have “significantly less liquidity”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Blake Gwinn (RBS Securities Inc)

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UUID: 7947283