HALISTER: Deutsche Bank Names Dupree to Run Americas M&A, Shuffling Ranks

Deutsche Bank Names Dupree to Run Americas M&A, Shuffling Ranks

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
DBK GR (Deutsche Bank AG)

People
Charles Dupree (Deutsche Bank AG)
David King (Bank of America Corp)
Anthony Whittemore (Deutsche Bank AG)
James Ratigan (Deutsche Bank AG)
Thomas Cho (Deutsche Bank AG)

Topics
Who's News - People

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UUID: 7947283

HALISTER1: Sumitomo Life Shuns Treasuries in Favor of Mortgage, Corp Debt

Sumitomo Life Shuns Treasuries in Favor of Mortgage, Corp Debt

(Bloomberg) -- Sumitomo Life Insurance is avoiding U.S. Treasuries in favor of the country’s corporate and mortgage debt due to rising hedging costs and lower sovereign yields.
  • U.S. 10-yr yield may trade between 1.2% and 1.7% over next six mos., vs April est. of 1.4% and 2.6% for this fiscal year, according to Yoshimichi Takahashi, manager of the life insurer’s foreign fixed-income investment section in Tokyo
  • “We can’t buy U.S. Treasuries,” Takahashi said in July 12 interview. “As dollar funding costs have been rising, we need to buy something that has a spread over Treasuries, which leaves us with corporate and mortgage bonds.”
  • Sees yen trading in 98-108 range over the next 3 mos. against dollar, stronger than 100-125 range forecast for this fiscal year projected in April
    • Cost to hedge the dollar-yen position using 3-mos. forward for one year is currently about 1.4% vs 0.5% a year ago, according to calculations by Bloomberg
  • Sumitomo Life Insurance is Japan’s 4th largest life insurer with total assets under management of about $210b
  • Expects Fed rate hike in Dec. followed by cautious stance in raising rates through next year, limiting gains in U.S. yields
  • Sumitomo added investment in non-sovereign bonds during last fiscal year-ended March 2016, as well as New Zealand and Mexican bonds as part of expansion of investment options
  • “We have not considered investing in emerging markets so far, but we are considering them as an option” to seek better returns, Takahashi said
  • Bearish on the euro amid speculation of additional monetary easing; plans to fully hedge investment in euro zone: Takahashi
    • No plans to add investment in the U.K.
  • PineBridge Investments Japan also noted that U.S. Treasuries don’t provide much returns any longer due to rising hedging costs
    • “This is prompting investors to shift to non-sovereign debt,” Kazuya Sugiura, President and CEO of the fund in Japan, said in interview on July 13. “However, such money flows are boosting their volatility significantly, making it hard to see stable returns in credit market.”
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Kazuya Sugiura (Pinebridge Investments Japan)
Yoshimichi Takahashi (Sumitomo Life Insurance Co)

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UUID: 7947283

HALISTER1: INSIDE THAILAND: Baht Slips for Third Day; Foreigners Sell Bonds

INSIDE THAILAND: Baht Slips for Third Day; Foreigners Sell Bonds

(Bloomberg) -- Baht falls vs dollar after overnight slide in oil prices and drop in U.S. Treasury yields amid risk-off tone.
  • Thailand should achieve 2.8% growth in 2016 and 3.0% in 2017, Moody’s writes in note yesterday; GDP will hit 3.0% in 2016 and 3.2% in 2017, according to estimates in Bloomberg surveys
  • Overseas investors sell net THB89.8m ($2.6m) of bonds, TBMA says; net sellers of Thai shares for second time in 3 days
  • Exchange chief expects increase in foreign stock buying
  • Govt may invest 80b baht next year to build a 120-km motorway linking Nakhon Pathom province and Cha-am district
  • Baht declining for third day, down 0.1% at 35.197 per dollar,
    • USD/THB momentum studies turning bullish ahead of resistance near 100-DMA at 35.253; click here for chart
  • Thailand sold THB30b 2022 bonds yesterday with 1.7172% yield; 2.47 bid coverage
  • Yield on 3.85% govt bond due Dec. 2025 steady at 1.920% after falling 2 bps yesterday
  • 5-yr credit-protection costs for Thailand rose yesterday for first time in four days, up 1 bp to 105 bps: CMA data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: California ARB Rejects Volkswagen Recall Plan for 3 Liter Cars

California ARB Rejects Volkswagen Recall Plan for 3 Liter Cars

(Bloomberg) -- Carb recall plans submitted by VW are incomplete
  • Recall plans deficient in a number of areas
  • VW recall plan affects 16k California 3.0l diesel vechicles
  • Carb, EPA to continue on-going technical talks w/ VW
  • Statement: Link
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
VOW GR (Volkswagen AG)

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UUID: 7947283

HALISTER: MORE: Dalian Wanda Said to Be in Talks for 49% of Paramount: WSJ

MORE: Dalian Wanda Said to Be in Talks for 49% of Paramount: WSJ

(Bloomberg) -- Viacom in talks to sell 49% stake in Paramount Pictures to Dalian Wanda, WSJ reports, citing unidentified people familiar.
  • Viacom seeking deal that would value Paramount at about $8b- $10b, WSJ cites 1 of the people
  • There’s 1 other undisclosed suitor, WSJ cites the person
  • NOTE: Reuters also reported that Dalian Wanda held talks about buying a minority stake in Paramount
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
3699 HK (Dalian Wanda Commercial Properties Co Ltd)
VIAB US (Viacom Inc)

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UUID: 7947283