HALISTER1: Brazilian Real Rises With Broad EM; DI Drops With CPI, Meirelles

Brazilian Real Rises With Broad EM; DI Drops With CPI, Meirelles

(Bloomberg) -- BRL opens higher for 3rd day in a row following broad post-Fed gains in high-yielding assets.
  • BRL rises 0.44% to 3.1929 per dollar; DI Jan 21 rate plunges, -17bps
  • IPCA 15 m/m Sept., 0.23%, est. 0.33% (prior 0.45%)
  • Brazil’s Key Rate Likely to Fall This Year, Meirelles Says
  • Temer message on Brazil well-received by NY Investors: Blackrock
  • BCB auctions up to 5,000 reverse FX swaps, 9:30am-9:40am local time
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Henrique Meirelles (Brazil Secretaria do Tesouro National)

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UUID: 7947283

HALISTER: Bayer-Monsanto Deal Pilloried by Skeptical German Lawmakers (1)

Bayer-Monsanto Deal Pilloried by Skeptical German Lawmakers (1)

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
BAYN GR (Bayer AG)
MON US (Monsanto Co)

People
Angela Merkel (Federal Republic of Germany)
Christian Schmidt (Federal Republic of Germany)
Kristina Schroeder (Federal Republic of Germany)

Topics
BGOV Agriculture

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UUID: 7947283

HALISTER: VW Balks at Compensation as EU Caves in Showdown Meeting (1)

VW Balks at Compensation as EU Caves in Showdown Meeting (1)

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
VOW GR (Volkswagen AG)

People
Vera Jourova (European Commission)
Christian Wigand (European Commission)
Eric Felber (Volkswagen AG)
Francisco Garcia Sanz (Volkswagen AG)
Frank Witter (Volkswagen AG)

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UUID: 7947283

HALISTER1: Japanese Front End Attractive as JPY Gain to Spur Lower Rate: GS

Japanese Front End Attractive as JPY Gain to Spur Lower Rate: GS

(Bloomberg) -- Short-term JPY rates can fall again and lower uncertainty over intermediate rate will migrate into higher FX and stock volatility, Goldman Sachs strategist Francesco Garzarelli writes in client note.
  • Front end of the yield curve is attractive to play from the long side as policy rates will likely be lowered to fend off undesired currency appreciation
  • Expect lower volatility in nominal Japanese intermediate rates as the central bank manages its market purchases of JGBs more flexibly
  • Slope of the long end of the yield curve will be constrained by the peg on 10-year rates
    • 10s30s JGB should hold inside 70bps to 80bps –- levels last seen when 10-year rates were at 30bps
  • Re-calibration of BOJ policy could spur easier domestic financial conditions by reducing volatility in target long rates and preventing excessive flattening of the yield curve
    • This should promote higher inflation over time, and in turn help depress ex-ante real rates and weaken the currency
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Francesco Garzarelli (Goldman Sachs Group Inc/The)

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UUID: 7947283