HALISTER1: INDIA RATINGS: Unishire Cut; KEI, Man Global Raised

INDIA RATINGS: Unishire Cut; KEI, Man Global Raised

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
  • To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery
DOWNGRADES
  • Unishire Urbanscape
    • NCDs cut to B+ from BB- at Crisil
    • Cites weakening of group’s business risk profile
UPGRADES
  • KEI Industries
    • LT bank facilities raised to A- from BBB+ at Care
    • Cites improved performance in FY16, profitability and liquidity profile
  • Man Global
    • LT bank facilities raised to BBB- from BB+ at Care
    • Cites repayment on most of the project loan
  • Sify Technologies
    • LT rating raised to A+ from A at Care
    • Cites growth in scale of operationss, improved profitability
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: INSIDE CHINA: Yuan Falls in Thin Liquidity Ahead of Abe’s Speech

INSIDE CHINA: Yuan Falls in Thin Liquidity Ahead of Abe’s Speech

(Bloomberg) -- Yuan declines along with most Asian currencies in risk-averse trade ahead of details on Japan’s stimulus package and a speech by Fed’s Kaplan in Beijing.
  • Trading in HK canceled this morning as a tropical storm passes through the city
  • Offshore yuan dropped as much as 0.22% shortly after 9am, before CNY fixing; move suggests trading is likely to be erratic today as Typhoon Nida, which has been downgraded to severe tropical storm, has kept some workers away from offices, an FX trader in North Asia says
    • Offshore yuan now down 0.11% at 6.6535 per dollar
    • Onshore yuan down 0.10% at 6.6489
    • PBOC weakens CNY fixing for first time in six days, by 0.26% to 6.6451
  • Yuan weakens on tension before speeches by Kaplan and Abe, while some investors also taking profit after yuan’s gain last week, Maybank senior FX strategist Fiona Lim says
    • Huge upside surprise for USD/CNH unlikely; Caixin July PMI suggests momentum of Chinese SMEs is stronger than expected
  • Dallas Fed President Kaplan is to speak on monetary policy at 6:15pm HKT; told Bloomberg Television yday that Sept. rate increase is still possible
    • To watch Kaplan’s interview with Bloomberg, click here
  • Japanese govt to give details on $273b stimulus today
  • CFETS RMB Index likely to slide in coming weeks as it tends to decline when depreciation pressure on yuan is alleviated, Scotiabank Asia FX strategist Gao Qi writes in note today
    • Downward pressure on yuan likely to resurface before Jackson Hole Symposium or major FOMC meetings; USD/CNY yr-end forecast still 6.70
  • Bloomberg synthetic CFETS index falls for second day, at 94.888 today
  • Survey of 77 central banks finds that 32 invest in both onshore and offshore yuan, up from just 3 in 2012, HSBC’s Greater China Chief Executive Helen P.K. Wong says
    • Central banks polled expect to put as much as 6.7% of reserves in yuan assets by 2025, up from 5.5% in last year’s survey
  • Foreigners boosted China bond holdings by most in two years in June
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Fiona Lim (Malayan Banking Bhd)
Helen Wong (HSBC Bank China Co Ltd)
Qi Gao (Bank of Nova Scotia Asia Ltd/Singapore)

Topics
Weather

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UUID: 7947283

HALISTER1: U.S. 30-Yr Yield May Fall Toward Zero in 2 Yrs: Nomura’s Uomoto

U.S. 30-Yr Yield May Fall Toward Zero in 2 Yrs: Nomura’s Uomoto

(Bloomberg) -- U.S. Treasury 30-year bond yield may fall toward zero in about two years as negative JGB yields are pushing Japanese money into major economies’ govt bonds, according to Nomura.
  • Even if BOJ slightly reduces JGB purchases, its effect would be limited to marginal steepening in Japan’s sovereign yield curve, Toshihiro Uomoto, credit strategist at Nomura, writes in note dated Aug. 1
    • Such a move from BOJ is unlikely to undermine downward pressure from negative rate policy
    • Reduction in JGB buying could be a realistic option as negative rate policy may be seen as having sufficiently lowered yield curve
  • NOTE: BOJ will conduct “comprehensive assessment” of QQE policy effects at next meeting on Sept. 20-21, the central bank said on July 29
  • If Uomoto’s forecast proves correct, current Treasury 30-yr bond may return 66% in two years, according to Bloomberg data; the security yields 2.26% today
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Toshihiro Uomoto (Nomura Holdings Inc)

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UUID: 7947283

HALISTER1: INSIDE THAILAND: 5-Year Swaps May Test 2016 Low If BOT Surprises

INSIDE THAILAND: 5-Year Swaps May Test 2016 Low If BOT Surprises

(Bloomberg) -- THB 5-year interest-rate swaps may decline toward record low at 1.63%, set on July 7, if BOT surprises with a rate cut or dovish outlook on monetary policy tomorrow, according to Bloomberg strategist Mark Cranfield.
  • Bank of Thailand is forecast to hold benchmark rate at 1.5% at its monetary policy meeting tomorrow, according to 22 of 23 economists in Bloomberg survey; one sees a cut to 1.25%
  • 5-yr swaps at 1.725% holding below 100-DMA at 1.814% since June 6; Slow stochastics %K at 60, turning lower from overextended territory; click here for chart
    • Baht currently trading steady at 34.770 per dollar.
  • Thai CPI should move toward forecast range in late 2016, Somkiat Triratpan, head of the ministry’s trade policy and strategy office said yday
  • BOT’s independence unaffected by recent Thai referendum, governor tells CNBC
  • Thailand’s King health improves, Royal Palace said in statement yday
  • Global investors were net buyers of 22.5b baht in Thai bonds yesterday, most since June 7, according to Thai Bond Market Association
  • Yield on 3.85% govt bond due Dec. 2025 steady at 2.015%, after falling 5 bps on Aug. 1
  • Thailand 5-year credit protection costs steady at 93.5 bps versus this year’s low at 89 bps set on July 22, according to CMA New York data
  • NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BOT TB (Bank of Thailand)

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UUID: 7947283

HALISTER1: Forbes: How The Russians Helped Turn Moldova Into A Hotbed For Money Laundering

Forbes: How The Russians Helped Turn Moldova Into A Hotbed For Money Laundering

Alert: HALISTER1
Source: FOR (Forbes)

People
Maia Sandu (Republic of Moldova)
Nicolae Timofti (Republic of Moldova)
Petro Poroshenko (Ukraine)
Vladimir Filat (Republic of Moldova)
Vladimir Putin (Russian Federation)

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UUID: 7947283