EU CREDIT DAILY: Feeling Stressed; EDF Beats, Barclays Misses
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- Disappointment in BOJ stimulus announced overnight likely to further damp credit-market sentiment into the month-end, as investors await EBA stress-test results this evening, Bloomberg strategist Simon Ballard writes.
Alert: HALISTER1- Italy’s Banca Monte dei Paschi di Siena expected to be at center of any negative consequences from stress tests
- Still, robust technicals seen underpinning cash corporate credit spreads over the coming weeks, even if macro fundamental challenges may still be building
- Alan Greenspan aired his concerns yday about over- stretched bond-market valuations, weak macroeconomics and the specter of stagflation, the nemesis of risk assets
- Such concerns have been on many investors’ minds for months now; basis for quality bias in investment strategies
- Recent compression in Risk Appetite Model reflects decline in volatility amid persistent investor appetite for yield
- CDX IG closed -0.5bps at 79.69 in overnight session; iTraxx Asia Ex Japan IG currently +0.6bps at 120.44 and iTraxx Australia quoted +0.8bps at 110.00
- Corporate News
- Wolters Kluwer Keeps 2016 Forecast; Raises Free Cash Guidance
- Japan Airlines 1Q Net Income Drops 54.9%, Missing Estimate
- IAG 2Q Earnings Misses Est; Sees Weaker Trading Environment inLo
- UBM 1H Adj Operating Profit Up, Keeps Trading Outlook for Year
- Sony Posts Surprise 1Q Profits, Maintains Earnings Outlook
- Pearson Says Trading In Line With 2016 View; Keeps 2016 Forecast
- Abertis 1H Net EU510M vs EU1.68B Year Earlier
- Reckitt 2Q LFL Sales Miss Ests., 1H Adj. Operating Profit
- Hitachi 1Q Net Income Rises 2.7%, Beating Estimate Beats
- SES 1H Revenue Falls, Says Results in Line With Forecasts
- Eni 2Q Adj. Net Loss From Continuing Operations; Div. In Line
- Vinci First-Half Earnings Meets Estimates on Highways, Airports
- Sanofi’s Profit Declines as Aging Drugs Face Competition
- AB InBev 2Q Normalized Ebitda, Organic Sales Miss Estimates
- EDF 1H Net Income Ex-Items Beats, Maintains 2016 Objectives
- U.K. Casts Doubt on $24 Billion Nuclear Plan After EDF Approval
- Mazda Motor 1Q Net Income Falls 42%, Misses Estimate
- Financial News
- Barclays 2Q Adj. Pretax Misses; CET1 Ratio Rises to 11.6%
- UBS Quarterly Profit Falls 14% Amid Subdued Client Activity
- Bank of Ireland 1H Underlying Profit EU560M Versus EU743M Y/Y
- Swiss Re Quarterly Profit Falls on Higher Catastrophe Claims
- Generali 2Q Profit Falls as Investment Income Drops
- Credit Rating News
- S&P Says Philippine Ratings Outlook Stable; Killings Unsettling
- S&PGR Afrms Colonial First State Fund Rtgs At ’AAAm’, ’AAf’
- Other News
- Kuroda’s $26 Billion Gift to Stock Market Underwhelms Investors
- Atlanta Fed Cuts U.S. GDP Forecast After Fresh Export Data
- The corporate bond market is not broken, doesn’t need fixing, and certainly does not need the heavy hand of (BOE) meddling and manipulation: creditmarketdaily.com
- Affordable Housing GBP191.4m 2043 Tap UKT +41
- State of Hessen EU500m 20Y MS +3
- European IG credit pipeline here and HY credit pipeline here
- Issuers exposed to S-T rollover and interest-rate reset risk here
- NOTE: Simon Ballard is a credit strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Source: BFW (Bloomberg First Word)
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