HALISTER1: INSIDE ASIA: Yuan, Won Strengthen as Regional Equities Rebound

INSIDE ASIA: Yuan, Won Strengthen as Regional Equities Rebound

(Bloomberg) -- Korea’s won and China’s yuan gain as a rise in local stocks improves risk sentiment, while Japan’s yen drops ahead of Fed Vice Chairman Fischer’s Bloomberg TV interview.
  • USD/Asia struggling to hold ground after Treasury yields overnight reversed much of their recent up-move, Moh Siong Sim, FX strategist at Bank of Singapore says
  • China’s yuan gains as PBOC raises reference rate
    • Yuan faces depreciation pressure from high USD Libor as Chinese corporates rush to pay offshore floating-rate debt in advance, Citic Securities head of fixed income research Ming Ming writes in note; room for RRR and interest-rate cuts are limited, as yuan is under pressure
  • Yen drops for fifth day against dollar, in longest losing streak since late March, as USD/JPY is bought by Asia-based leveraged funds ahead of option expiries, says a trader
    • Finance Ministry should “courageously” intervene in FX markets to stem the yen’s appreciation, an adviser to PM Abe, says in editorial
  • Aussie falls against dollar as Australia ANZ Roy Morgan consumer confidence slips 2.8% to 118.4 for week ended Aug. 28
  • Kiwi little changed against dollar; New Zealand’s July building permits fell 10.5% m/m, biggest drop in four years
    • New Zealand economy doing well relatively well, patience needed on inflation, says RBNZ Assistant Governor McDermott; a zero cash rate is unlikely,
  • Won pares yesterday’s slide before release of Bank of Korea meeting minutes
    • South Korea’s July discount store sales rose 2.1% y/y, most in 6 mos.
    • South Korea’s aging population is a more difficult challenge than responding to Fed rate increases and rising household debt, BOK Governor Lee says
  • Peso drops after yesterday’s Philippine holiday, playing catch-up with regional peers
    • Peso still moving with region, and sound macroeconomic fundamentals will provide anchor to local currency, says Bangko Sentral ng Pilipinas Governor Tetangco
    • Also said the bank “will not necessarily have to move in sync with the Fed” should it hike in Sept. or Dec., as Yellen’s comments indicated, Tetangco said on Aug. 27
  • Rupiah little changed
    • Indonesian central bank is assessing plan to average primary reserve requirement, Yati Kurniati, head of macroprudential research, said yesterday
    • International funds were net sellers of 471b rupiah ($35.5m) in Indonesian bonds on Aug. 26, according to finance ministry data; net sellers of $11.4m in local equities yesterday, according to exchange data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Moh Sim (ING Groep NV)
Amando Tetangco (Bangko Sentral ng Pilipinas)
Ming Ming (CITIC Securities Co Ltd)

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UUID: 7947283

HALISTER1: Taiwan Central Bank Visited NYDFS on Mega Bank Case

Taiwan Central Bank Visited NYDFS on Mega Bank Case

(Bloomberg) -- Central bank reps visited NYDFS on Aug. 4 to seek more time for Mega Bank to handle the US regulator’s penalty.
  • Central bank Gov. Perng Fai-nan also made similar request in letter to Federal Reserve Bank of New York, monetary authority says in website statement http://tinyurl.com/hrtmjyo
  • NOTE: Mega Fined $180m by N.Y. Over Anti-Money Laundering Law Link
Link to Statement:Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2886 TT (Mega Financial Holding Co Ltd)
CBC TT (Central Bank of the Republic of China/Taiwan)

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UUID: 7947283

HALISTER1: Soaring USD Libor Pressuring Yuan, China Bonds: Citic Securities

Soaring USD Libor Pressuring Yuan, China Bonds: Citic Securities

(Bloomberg) -- Rising USD Libor is adding depreciation pressure on yuan as Chinese corporates step up repayment of external debt, Citic Securities head of fixed income research Ming Ming writes in a note today.
  • Global dollar liquidity is tightening due to rising demand driven by increased Fed rate hike expectation and ahead of new U.S. money market regulation
  • As USD Libor rises, Chinese companies are under pressure to pay external debt in advance, which could lead to selling pressure for yuan
    • Higher USD Libor increases funding cost for Chinese corporates as they have Libor-based floating rate external debt
  • USD/CNY has over 90% correlation with 3-month USD Libor in the past three years
    • Rising USD Libor could lead to further depreciation pressure on yuan
  • Room for RRR and interest rate cuts are limited in China, as yuan is under pressure
    • That adds to liquidity risk in domestic bond market; recent bond market retracement hasn’t bottom
  • NOTE: 3-month USD Libor rose to 0.83344% on Friday, highest since May 2009
  • NOTE: USD/CNY trades -0.06% at 6.6800; pair closed at 6.6838 yday, highest since July 19
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ming Ming (CITIC Securities Co Ltd)

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UUID: 7947283

HALISTER1: Australia July Building Approvals Due in 5 Mins; Est. 1.1% M/m

Australia July Building Approvals Due in 5 Mins; Est. 1.1% M/m

(Bloomberg) -- Australia due to release July building approvals at 11.30am local time.
  • July building approvals m/m est. 1.1% vs prev. -2.9%
  • July building approvals y/y est. -8.3% vs prev. -5.9%
  • NOTE: Australia June building approvals by value (table)
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: CHINA PREVIEW: Bonds Yield May Resume Declines on PMI: Analysis

CHINA PREVIEW: Bonds Yield May Resume Declines on PMI: Analysis

(Bloomberg) -- China’s 10-year govt bond yield may fall back toward the decade low set in mid-August if factory PMI fails to meet forecast this week, Bloomberg analysis suggests.
  • Chart shows 10-year yield and factory PMI have tended to move in tandem in recent years
  • Official manufacturing PMI probably slipped to 49.8 in August from 49.9, according to median est. in Bloomberg survey; ests. range 49.5 to 50.1 ; data due 9am local time on Sept. 1
  • If forecasts are accurate, it would be the third straight drop
  • 10-year bond yield is also heading for a third month of declines, currently down by 7 bps to 2.706%; it touched a low of at 2.6401% on Aug. 15
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: DBRS’s Curry Steps Down as CEO, Joynt Named Interim Replacement

DBRS’s Curry Steps Down as CEO, Joynt Named Interim Replacement

Alert: HALISTER1
Source: BN (Bloomberg News)

Tickers
CG US (Carlyle Group LP/The)
SPGI US (S&P Global Inc)
20326Z US (Warburg Pincus LLC)

People
Daniel Curry (DBRS Ltd)
Stephen Bernard (DBRS Ltd)
John Redett (Carlyle Group LP/The)
Stephen Joynt (Fitch Inc)

Topics
Management Changes
Who's News - People
Financial Firm Departures

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UUID: 7947283