HALISTER1: Shire’s Xiidra Approval Renews Focus on Growth, Cowen Says

Shire’s Xiidra Approval Renews Focus on Growth, Cowen Says

(Bloomberg) -- FDA approval of Xiidra (lifitegrast) should renew focus on Shire’s growth thesis, which is “very much intact,” Cowen (outperform) says in note.
  • Cowen sees potential sales of $1.5b-$3b and recommends adding “aggressively”
  • Notes Xiidra is indicated for both the signs and symptoms of dry eye, which is “nice differentiating advantage” to Allergan’s market-leading Restasis, which is indicated for increasing tear production and not specifically for the signs or symptoms of dry eye
DATA
  • Stock has risen 3.8% month-to-date vs a 1.2% rise in the Stoxx 600 Health Care index; is up 2.6% YTD vs a 4.1% fall in the SXDP index
  • Of 23 analyst ratings, 22 are buy, 1 hold, 0 sell, with an average PT of 5783.20p, implying ~20% upside
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
SHP LN (Shire PLC)

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UUID: 7947283

HALISTER1: New York Post: Dueling prosecutors tipped off HSBC to settlement terms in money-laundering case

New York Post: Dueling prosecutors tipped off HSBC to settlement terms in money-laundering case

Alert: HALISTER1
Source: NYP (New York Post)

Tickers
HSBA LN (HSBC Holdings PLC)

People
Stuart Gulliver (HSBC Holdings PLC)
Eric Holder (Covington & Burling LLP)

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UUID: 7947283

HALISTER1: INSIDE G-10: JPY Extends Fall, Nikkei Jumps; AUD, GBP Bounce

INSIDE G-10: JPY Extends Fall, Nikkei Jumps; AUD, GBP Bounce

(Bloomberg) -- USD/JPY rises above 103.00 as investors wait for details of PM Abe’s stimulus package; Nikkei index advances more than 6% in two days.
  • Fed’s Mester says timing of Fed move depends on how economy evolves; need to consider Brexit in medium-term outlook
  • BBDXY down 0.14% to 1,190.25
  • USD/JPY up 0.2% to 103.04 vs 102.45-103.29 range
    • Rose early on leveraged buying, with some pull back after Economy Minister Ishihara told reporters PM Abe hasn’t yet requested the compilation of an economic package
    • FM Aso will mull fiscal stimulus as soon as Abe orders
    • Reports that BOJ Kuroda met with former Fed Chairman Bernanke are spurring speculation that Japan will get “helicopter money,” says NAB
    • BOJ will need to slow bond purchases, ex-director says
  • AUD/USD up 0.6% to 0.7578 vs 0.7531-0.7593 range
    • AUD/JPY buying by global macro funds helping to lift Aussie, says trader
    • Australia June business confidence rises to 6 from 3 pts
  • GBP/USD up 0.4% to 1.3055 vs 1.2973-1.3092 range
    • Rises partly on GBP/JPY short covering, says trader
    • Options expiring on July 15 include strikes 1.2950 for $564m and 1.3000 for GBP818m
    • Theresa May starts work to prepare U.K. for Brexit
    • U.K. LFL June retail sales fall 0.5% y/y vs +0.2% in May
  • EUR/USD up 0.2% to 1.1077 vs 1.1052-1.1091 range
    • IMF urges action on Italy’s bank bail-in
    • Bundesbank’s Dombret: no policy response needed to Brexit
    • Options expiring today include 1.1050 strikes for EUR1,21b
  • NZD/USD up 0.6% to 0.7260 vs 0.7213-0.7270 range
  • WTI, Brent crude and copper futures rise; gold steady
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Ben Bernanke (Brookings Institution/The)

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HALISTER1: INDIA RATINGS: Walchandnagar Cut to D; Surya Roshni Raised

INDIA RATINGS: Walchandnagar Cut to D; Surya Roshni 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
  • Bajaj Steel
    • Long-term loan facilities cut to A- from A at Crisil
    • Cites sustained poor operational performance
  • GMR Warora Energy
    • Term loan cut to D from BBB- at Care
    • Cites unforeseen deterioration in liquidity profile resulting in delays in debt servicing
  • Walchandnagar Industries
    • LT bank facilities cut to D from BBB- at Care
    • Cites ongoing delays in debt servicing
UPGRADES
  • Alpha Design Technologies
    • LT bank facilities raised to BBB+ from BBB- at Care
    • Cites substantive growth in operating income, healthy order book position
  • Galaxy Construction
    • LT bank facilities raised to B from D at Care
    • Cites regularization of debt servicing track record
  • Gold Plus Glass
    • LT bank facilities raised to BB from BB- at Care
    • Cites significant improvement in profitability margin, debt protection metrics
  • Indiabulls Housing Finance
    • Subdebt raised to AAA from AA+ at Care; perps raised to AA+ from AA
    • Cites consistent strong financial, business performance
  • Mangalam Drugs
    • LT loan facilities raised to BB from B+ at Crisil
    • Expects healthy growth in scale of operations
  • Surya Roshni
    • LT bank facilities raised to A from A- at Care
    • Cites improvement in capital structure
  • Ujjivan Financial
    • LT bank facilities raised to A+ from A at Care
    • Cites healthy improvement in business, earnings profile
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
SYR IN (Surya Roshni Ltd)
WI IN (Walchandnagar Industries Ltd)
BJST IN (Bajaj Steel Industries Ltd)
GMRI IN (GMR Infrastructure Ltd)
0609235D IN (Gold Plus Glass Industry Ltd)

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UUID: 7947283

HALISTER1: India CPI at 22-Mo. High May Push NDF Below Fibo Level: Analysis

India CPI at 22-Mo. High May Push NDF Below Fibo Level: Analysis

(Bloomberg) -- USD/INR 1-mo. NDF could breach decisively Fibonacci support at 67.39 if India’s inflation rate matches or beats forecasts today, Bloomberg strategist Andrew Robinson writes.
  • Level represents 61.8% retracement of June 9-24 rally
  • Consumer prices probably rose 5.80% y/y vs 5.76% in May, median est. in Bloomberg survey shows; would be highest since Aug. 2014
    • Ests. range from 5.30% to 6.00%; data due 5:30pm Mumbai time
  • Goldman Sachs forecasts June headline CPI inflation at +6.0% y/y, mainly due to further up-tick in food inflation, particularly vegetables, according to note received July 8
  • NDF now at 67.47; if 67.39 level is breached convincingly, NDF could drop to 67.07 near term, which is 76.4% Fibonacci retracement of above rally
  • NOTE: Andrew Robinson is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: INSIDE ASIA: Yen Drops on Japan Stimulus Optimism; Aussie Surges

INSIDE ASIA: Yen Drops on Japan Stimulus Optimism; Aussie Surges

(Bloomberg) -- Yen falls for a second day on expectations that Prime Minister Abe will unveil a stimulus plan following the election win, helping to bolster risk sentiment.
  • Investors are anticipating “mega stimulus” in Japan, which is pushing USD/JPY higher, says Stephen Innes, senior trader at Oanda; until Japan’s govt has tabled reforms, higher USD/JPY will give speculators better levels to buy yen
    • Abe hasn’t yet ordered a stimulus package, says Economy Minister Ishihara
    • If PM Abe reveals details on economic stimulus, USD/JPY may rise further toward 103.39, says Naoto Ono, analyst at Ueda Harlow
    • USD/JPY buying in earlier hours led by leveraged investors, according to an FX trader in Asia
  • Yen dips 0.3% to 103.10, following a 2.3% decline yesterday, while the Aussie surges 0.6%. Asian markets are mixed with the yuan rising after Chinese banks were seen selling USD in offshore markets
  • Japan 10-year sovereign bond yield up 1 bp to -0.259% while same tenor govt. bond yield in Australia jumps 5 bps to 1.952%; U.S. 10-year Treasury yield up 1 bp to 1.439%
  • Aussie rises; Australia June business confidence gains 3 pts m/m to 6
    • AUD top forecaster says relatively high interest rates could turn out to be its weakness in coming months; RBA’s ability to cut rates more than others will cap currency
  • Yuan gains
    • USD/CNH sold by large Chinese banks in North Asia, according to FX traders in the region
    • PBOC may have intervened in the FX market today after “unusually high” onshore yuan trading volume yday signaled rising demand for dollar, OCBC Bank economist Tommy Xie says
    • There’s a USD squeeze onshore, says onshore traders
    • Brexit knocks yuan forecasts to 7 and beyond; BofA sees yuan at 7 by yr-end; UBS expects 7.2 sometime next year; Goldman, RBS and ABN Amro Bank NV forecast 7 in 2017
  • Won pares losses after it fell as much as 0.48% earlier
    • BOK is expected to trim 2016 GDP growth forecast to 2.6% from 2.8%, and lower CPI inflation prediction to 1.0% from 1.2%, Nomura wrote in note yday
  • Currencies in Southeast Asian drop
    • Peso hits four-month low after exports missed forecast, with shipments falling 3.8% y/y in May, median est. was -2.4%
    • President Duterte isn’t planning unmitigated spending, according to Finance Secretary Dominguez
    • Ringgit dips after touching 2-month high yesterday. Malaysia industrial production due today; ests. +2.5% y/y vs +3.0% in April, according to median est. in Bloomberg survey
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Stephen Innes (OANDA Corp)
Naoto Ono (Ueda Harlow Ltd)
Tommy Xie (Oversea-Chinese Banking Corp Ltd)

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UUID: 7947283

HALISTER1: INSIDE THAILAND: Baht Falls; Thai CDS Spread at Least in a Year

INSIDE THAILAND: Baht Falls; Thai CDS Spread at Least in a Year

(Bloomberg) -- Baht declines; five-year credit-protection costs for Thailand fell 3 bps yesterday to 104 bps, lowest daily close since July 2015, according to CMA data.
  • State enterprise policy committee approves investment in infrastructure projects including 44.2b baht rail project in Bangkok’s suburbs
  • Baht down 0.2% to 35.170 per dollar
    • USD/THB momentum studies turning higher, a move today above 21-DMA at 35.202 could be bullish signal; click here for chart
  • The new 5-year benchmark bond to be auctioned tomorrow should see reasonable demand from onshore investors while offshore interest will hinge partly on USD/THB, ANZ analysts write in note; sees yield cut-off in 1.70%-1.75% area
    • On valuation, the picture is mixed; 5-year bond is cheap relative to swap but rich along the curve
    • Further yield compression is likely to be more modest going forward, hinging on whether global risk sentiment worsens
  • International funds were net sellers of 1.9b baht ($54.4m) in Thai bonds yesterday, according to Thai Bond Market Association data; net buyers of $17.4m in country’s equities, according to exchange data
  • Yield on 3.85% govt bond due Dec. 2025 steady at 1.892%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283