Halister News

(Bloomberg) -- Dutch Finance Minister Jeroen Dijsselbloem says the council working group is looking at “the possibility to do research on clients with virtual currencies like bitcoins, and pre-paid cards and the exchange of information between the financial intelligence units” in the effort to fight money laundering.

• “There are a number of proposals which are an extension of the anti-money laundering guidelines which are still under discussion in the working group,” Dijsselbloem tells reporters in Brussels before a meeting of European Union finance ministers
• “We don’t expect decisions to be taken, it’s more like a step in the state of play”
• “After last summer and the terrorist attacks, there is a bigger need to exchange more information between the investigation units in the various countries”
• “The discussion is now about what can we do in researching clients, when terrorists finance themselves via virtual currencies or pre-paid cards”
• “What we are allowed to do when it’s about cash, but this still doesn’t happen with this kind of payment”
• “The issue is, should that also be the case in instances of bitcoin transactions”

(Bloomberg) -- Last week non-core EGB saw the largest net buying in 4 months led by Italy, Citigroup strategist Saumesh Dutta writes in client note.

• Net buying in the non-core last week was broad-based across the curve (except the 15y sector) but strong demand for the 2y sector stands out when looking at the trend
• Net buying seen in the core for the sixth consecutive week concentrated in the 5y sector
• Net selling of euro linkers last week, led by France and Spain
  • Italian linkers saw the largest net buying in six weeks
  • Demand for Bundei continues to strengthen on a four-week average basis
• Gilts saw the largest net selling in nine weeks with the 30y sector seeing net selling for two weeks in a row
• Demand for linker gilts was the highest in 2 months

(Bloomberg) -- With Asian credit markets rallying again overnight, as final U.S. election polls show Clinton with slim lead, EUR risk assets look set to open with a firm bias. But trading volumes likely to be low ahead of results, Bloomberg strategist Simon Ballard writes.

• 3Q earnings season now at critical mass; Toyota among latest companies to post positive results, raise profit outlook
• Macro data spotlight falls on German Sept. industrial output; will provide the last element of 3Q GDP picture
• Technical support from ECB CSPP underscored by latest purchase data; ECB added EU2.54bn last week, second biggest weekly accumulation

• Risk Appetite Model solidly pricing in Clinton victory
• Bloomberg Barclays Eur-Agg Corporate index closed Monday at 111bps (-1bp); Bloomberg Barclays Eur HY index closed at 384bps (-7bps)
• CDX IG closed Monday -2.9bps at 77.54; iTraxx Asia Ex Japan IG is currently -0.2bps at 116.45 and iTraxx Australia quoted -1.6bps at 105.66

NEWS

• Corporate News
• Toyota Lifts Profit Forecast as Stable Yen Improves Outlook
• ArcelorMittal 3Q Ebitda Misses; FY ’16 Cash Flow to Exceed Capex
• M&S 1H Adj. Pretax, 2Q Clothing and Home LFL Sales Beat Ests.
• New Look 1H Group LFL Sales Fall 8.4%
• AB Foods Forecasts Higher Profits as World Sugar Prices Increase
• Imperial Brands FY Adjusted Operating Profit In Line, EPS Beats
• Punch Taverns Says FY Results In Line With Company Expectations
• Dong 3Q Ebitda Beats Estimates; Plans to Sell Oil Unit
• Securitas 3Q Ebita, Organic Growth Beat Estimates
• Wallenstam 3Q Income, Profit Rises
• Solvay Sees Profit Growth Picking Up in Final Quarter of Year
• Henkel 3Q Adj. Operating Profit In Line, Confirms 2016 Guidance
• ADP 9-Month Revenue Slips 0.5%; Repeats Outlook for FY Earnings
• SoftBank’s Profit Tops Estimates as Sprint Gets on Track
• VW Chairman Poetsch Engulfed in Diesel Crisis as Probe Widens

• Financial News
• Credit Agricole Profit Jumps on Trading, Pledges Stable Dividend
• Direct Line 9M Gross Written Premiums from Operations Rise 4.2%
• Sberbank Oct. Profit 53.1b Rubles Under Russian Standards

• Rating News
• Fitch Affirms New Zealand Covered Bond Ratings on New Criteria
• Moody’s takes ratings actions on Hungarian banks after sovereign upgrade

• Other News
• Your Hour-by-Hour Guide to Following Obsessively on Election Day
• Goldman Says Clinton Victory More Likely as Gold Holds Decline

ANALYST VIEWS

• We are surprised that we have not yet felt a more aggressive tightening trend (from ECB CSPP), unless of course investors are “happy” to sell into the ECB’s bid, and then hoard their cash and rotate into primary, when they can: creditmarketdaily.com

NEW ISSUES

• ICADE EU500m 9Y MS +82
• Lloyds Banking Group EUR 5Y MS +80 and 7Y MS +90
• European IG credit pipeline here and HY credit pipeline here
• Issuers exposed to S-T rollover and interest-rate reset risk here

• NOTE: Simon Ballard is a credit strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.

--PAUL GORDON

(Bloomberg) -- 3Q Ebitda $1.9b vs est. $1.95b; sales $14.5b vs est. $15b.

• 3Q steel shipments $20.3b, down 8.1% q/q
• Sees decline in profitability in 4Q vs 3Q on lower U.S. steel prices, with higher met coal prices
• Considering expected full year investment in operating working capital of ~$1b vs previous est. ~$500m, co. expects cash flow from operations to exceed capex this year
• 3Q own iron ore production of 13.7mt vs 15.8mt y/y

Statement