Halister News

--JEFF BLACK

Economic Release Details: {GRIFPBUS Index ECOD} --ALESSANDRO SPECIALE

(Bloomberg) -- German July Ifo business climate est. 107.5 vs prev 108.7.

• German July Ifo current assessment est. 114.0 vs prev 114.5
• German July Ifo expectations est. 101.6 vs prev 103.1

(Bloomberg) -- Yield spread compression between EUR HY/IG indexes, down to ~310bps, highlights consistency of investor demand for yield. Primary mkt may offer closing window of opportunity to issuers this week ahead of FOMC Wednesday, EBA bank stress test results Friday and then expected seasonal lull starting next week, Bloomberg strategist Simon Ballard writes.

• Telecoms sector may see some spread volatility this week; Verizon reported to have agreed $5b acquisition of Yahoo
• Geopolitical headlines likely to remain key driver of investor sentiment; U.K. Chancellor Hammond recognizes need for clarity in Brexit negotiations; European/Germany terror alerts elevated
  • U.S. Democrats convention starts today; head of the Democratic National Committee resigns
• Risk Appetite Model held firm into weekend as summer lull seen approaching
• CDX IG closed Friday -0.6bps at 76.20; iTraxx Asia Ex Japan IG currently -0.3bps at 118.97 and iTraxx Australia quoted -0.5bps at 109.44

NEWS

• Corporate News
• Ryanair 1Q Net Misses Estimate; FY Forecast Repeated, Sees Risks
• Philips 2Q Adjusted Ebita Beats Estimates, Keeps 2016 Outlook
• Huawei Technologies 1H Revenue Jumps 40% Y/y to 245.5b Yuan
• CVS Sees FY Revenue, Ebitda Modestly Ahead of Estimates
• China Auto Industry May Face Overcapacity Risks: People’s Daily
• Nintendo Plunges After Saying Pokemon Go’s Impact Is Limited
• LVMH Sells Donna Karan to G-III Apparel for $650 Million
• Ericsson Says CEO Hans Vestberg Steps Down Immediately
• William Hill Says Would Listen to Any Proposal From 888, Rank

• Financial News
• Julius Baer First Half-Profit Increases on New Client Money
• Mizuho Hires for Wall Street Bond Push as Ex-RBS Staff Settle In
• China Bank to Transform $1.6 Billion of Bad Debt Into Securities
• Aberdeen 3Q AUM Rise 2.9% Q/q, Net Outflows GBP8.9b

• Credit Rating News
• S&PGR Affirms BlackRock Cash Fund ’AAAm’ Rating
• Fitch Affirms 2 Pepper Non-Conforming RMBS Transactions
• First-Half Sukuk Issuance in Key Markets Up 11%: Fitch

• Other News
• Draghi Keeping Brexit Composure Awaits Euro-Area Aftershock Data

ANALYST VIEWS

• It might be the final run-in to the holiday season, but we’ve seen for a while now - and will to continue to observe - a persistent grind better in credit spreads: creditmarketdaily.com

NEW ISSUES

• ContourGlobal EU50m 5.125% 2021 Tap 102.75
• Lecta EU375m 7NC3 Fixed, EU225m 6NC1 FRN
• Naviera Armas EU232m 7NC3 Snr Sec FRN 3mE +650 at 99
• 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.

(Bloomberg) -- Purchase of the women’s clothing brand will close in late 2016 or early 2017 and will be dilutive in the year to Jan. 31, 2018, G-III and LVMH say in a statement.

• Purchase will be accretive after that date, the statement says
• G-III will take on new debt, and will also use $75m of new stock and a $75m 6 1/2 year seller note to pay
• G-III has financing commitments from Barclays and JPMorgan Chase.