HALISTER1: Pound, Non-Resident Selling Pressuring Gilts: Analysts

Pound, Non-Resident Selling Pressuring Gilts: Analysts

(Bloomberg) -- U.K. 10-year yields gilt hit the highest level since the Brexit vote due to a mix of factors, according to strategists at Natixis and Nordea.
  • Non-resident selling flows and inflation among main causes for gilt weakness, Natixis strategist Cyril Regnat writes in e-mailed comments
    • Theresa May seems to be a “hardliner” when it comes to the Brexit negotiations
  • Sterling is weakening due to non-resident selling flows as they switch their pounds vs USD or EUR
  • There is definitely some contagion from the U.S. as well given the positive and historical correlation between U.S. and U.K. yields
    • Sterling is a big part of the story, as it would generate inflation in the U.K., Nordea strategist Jan Von Gerich says in separate e-mailed comments
  • Says today’s gilt moves is affected by the higher yields in euro-area and U.S. as well; the renewed Brexit uncertainty makes gilts look less attractive for foreign investors
  • NOTE: USTs Stabilize After Gilts, EGBs Weigh in Early Trade
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Cyril Regnat (Natixis SA)
Theresa May (United Kingdom of Great Britain and Northern Ireland)
Jan Von Gerich (Nordea Bank AB)

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UUID: 7947283

HALISTER: Goldman Sachs Wins Libya Fund Lawsuit, London Judge Says

Goldman Sachs Wins Libya Fund Lawsuit, London Judge Says

Kit Chellel (Bloomberg) -- Goldman Sachs won a lawsuit brought by the Libyan Investment Authority over trading losses, a London judge said issuing her decision in the $1.2 billion case.
  • Judge Vivien Rose issues ruling in London Friday
  • Libya argued that Goldman Sachs crossed the line in befriending and entertaining young LIA officials
  • Lawsuit sought to get back all of the $1.2 billion the fund lost in 2008 derivative trades linked to Citigroup Inc. and other stocks
  • Goldman Sachs argued that it was “utterly unreal” to suggest the bank had a duty to safeguard the Libyan wealth fund’s interests while selling it billion-dollar investment deals
  • SEE: Goldman ‘Crossed the Line’ in Libya, LIA Says as Trial Nears End NSN OAX9II6S972H
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
GS US (Goldman Sachs Group Inc/The)
3399249Z LY (Libyan Investment Authority)

Topics
Civil Procedure

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UUID: 7947283

HALISTER1: U.S. ECO PREVIEW: Retail Sales, PPI Due in 5 Minutes

U.S. ECO PREVIEW: Retail Sales, PPI Due in 5 Minutes

(Bloomberg) -- Retail sales seen rising 0.6% m/m in Sept. after falling 0.3% in Aug. (forecast range +0.2% to +1%); tracks sale of new and used goods for personal or household consumption.
  • Prior retail sales report showed across-the-board weakness
  • Producer price index seen rising 0.2% in Sept. after showing no change in Aug. (forecast range +0.1% to +0.3%); PPI is one of three monthly inflation reports from Labor Dept.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: Citigroup Profit Beats Estimates on 35% Jump in Bond Trading

Citigroup Profit Beats Estimates on 35% Jump in Bond Trading

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
C US (Citigroup Inc)
AXP US (American Express Co)

People
James Forese (Citigroup Global Markets Inc)
John Gerspach (Citigroup Global Markets Inc)
Mike Corbat (Citigroup Global Markets Inc)
Stephen Bird (Citigroup Inc)

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UUID: 7947283