HALISTER1: U.S. ECO PREVIEW: ISM Non-Mfg, Factory Orders Due in 5 Minutes

U.S. ECO PREVIEW: ISM Non-Mfg, Factory Orders Due in 5 Minutes

(Bloomberg) -- ISM non-manufacturing index seen at 55.9 in July vs 56.5 in June (forecast range 54.3 to 57); composite index tracks business activity, orders, employment, deliveries; above 50 indicates expansion, below 50 contraction.
  • June reading was highest in 7 months, led by stronger orders and sales; 15 of 18 industries reported growth, including mining, entertainment, retail and real estate
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: BOE Corporate QE Would Boost U.S. IG Bonds Three Ways: BofAML

BOE Corporate QE Would Boost U.S. IG Bonds Three Ways: BofAML

(Bloomberg) -- BOE buying corporate bonds would target one of the few real alternatives to U.S. credit and would be bullish for U.S. IG corporate bonds in at least three ways, BofAML analysts led by Hans Mikkelsen write in client note.
  • Central banks can meaningfully compress credit spreads when buying in illiquid corporate bond markets, driving even more sterling investors toward the U.S. market
  • QE tends to lead to a shortage of bonds and U.S. companies are likely be happy to issue in GBP to fill the void
  • U.K. Yankee issuers account for $272b, or 4.5%, of U.S. HG market value; would probably benefit most in U.S. market from any BOE QE
  • NOTE: BofAML expects BOE to cut rates by 25bps on Thursday, as well as announce GBP50b of QE split between gilts and corporates, and revamp the funding-for-lending scheme
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Hans Mikkelsen (Bank of America Corp)

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UUID: 7947283