Halister News

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.

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UPGRADES

• Banco Aluminium
  • Long-term bank facilities raised to A from A- at Care
  • Cites improvement in profitability margins

• Manish Vinyls
  • LT loan facilities raised to BBB- from BB+ at Crisil
  • Expects business risk profiles to improve over the medium term due to increasing focus on domestic market

• Mayur Uniquoters
  • LT bank facilities raised to AA from AA- at Care
  • Cites consistent improvement in operating profit margins

• Sintex-BAPL
  • LT bank facilities raised to A from A- at Care
  • Cites growth in scale of operations

(Bloomberg) -- Indian 10-year bond yields may fall below year-to-date low of 6.772% near-term if RBI, which many analysts expect to hold rates, adopts a dovish stance to support growth given declining inflation, Bloomberg strategist David Finnerty writes.

• RBI will leave its repurchase rate unchanged at 6.50% according to 19 of 34 economists in Bloomberg survey; 14 forecast a cut of 25 bps and one a reduction of 50 bps; decision due Oct. 4
• Will be first RBI meeting with new monetary policy committee; MPC has inflation target of 4% with upper tolerance of 6%
  • India’s Aug. CPI eased to 5.05% y/y from 6.07% in July
• Dovish stance may be adopted not only because of declining inflation, but also because Indian 2Q GDP fell to 7.1% y/y from 7.9% in 1Q, lowest growth reading since 1Q 2015
• Yields have fallen as overseas funds seek Indian bonds due to their relatively high yields
  • Fed’s lowered interest-rate dot plot should add to demand for Indian bonds
  • Global funds were net purchasers of $4.6b of Indian bonds in 3Q
• NOTE: Indian yields are vulnerable to move higher in short- term if there is an escalation of tensions between India and Pakistan
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.

(Bloomberg) -- Lower-than-forecast Sept. CPI for Indonesia could spur rally in USD/IDR 1-mo. NDF as it may provide more backing for further BI rate cuts, Bloomberg strategist Andrew Robinson writes.

• Consumer prices probably rebounded in Sept. from more than 6-year low of 2.79% in Aug., Bloomberg survey shows; median est. is 3.05%; ests. range from 2.60% to 3.30%; data due today, no time specified
• BI likely to lower benchmark rate 25 bps by end-4Q, another survey shows
• 1-mo. NDF could rise to 50-DMA, now at 13,181; NDF hasn’t traded above this moving average since Sept. 21
  • Slow stochastics giving bullish signal, %K line at 32, above %D line & rising
• USD/IDR 1-mo. NDF down 0.2% at 13,049
  • Touched 12,914 on Sept. 27, lowest since April 2015
• NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.

(Bloomberg) -- Swiss bank regulator Finma’s penalties on errant lenders are deemed to be feeble by the Organization for Economic Cooperation and Development, SonntagsZeitung (SoZ) reports, citing unpublished institution document.

• Sanctions against bank management and employees who failed to do due diligence have not been visible enough, SoZ reports, citing study by money laundering experts
• Lawyers involved in offshore businesses are partly exempt from due diligence rules, contrary to international standards
• The report, by OECD’s Financial Action Task Force, is to be published in December, SoZ says
• Representatives from OECD and FATF couldn’t immediately be reached for comment by e-mail outside of normal business hours