HALISTER1: INSIDE TAIWAN: Taiwan Dollar Rises on Equity Flows; Yields Gain

INSIDE TAIWAN: Taiwan Dollar Rises on Equity Flows; Yields Gain

(Bloomberg) -- Taiwan dollar rallies to two-week high as foreign investors buy local equities, while government bonds were sold after weaker-than-expected demand at an auction
  • TWD rises 0.11% to close at 32.221 vs USD; it traded as high as 32.203 during the day, the strongest since June 8
  • The currency has been supported by foreign funds inflow into its equity market since end of May, says Eddie Cheung, Asia FX strategist at Standard Chartered; Lower volatility than other Asian currencies could buffer it from external risk events such as Brexit
    • Sees further gains for TWD if U.K. votes to remain within EU
    • Expects CBC to cut benchmark rate by 12.5 bps at June 30 meeting, though that could have limited impact on the currency
  • Overseas investors buy net NT$5.39b ($167.23m) stocks today
  • Yield of 10-yr Taiwan govt bond rises 0.1 bp to close at 0.8%; intraday high at 0.8087%, highest since June 3
    • Yield gains as sentiment was hurt after yday 5-yr note auction show demand was weaker than expected, says Edward Chang, Taipei-based bond trader at Fubon Financial
    • Still, CBC is likely to cut rates this month; suggests buying 10-yr note at around 0.8%
    • Expects 10-yr bond yield in 0.79%-0.81% range before U.K. referendum; 5-yr note yield within 0.56%-0.58%
  • Yield of 5-yr bond falls 0.85 bps to 0.5640% on when-issued trading
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Eddie Cheung (Standard Chartered PLC)

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UUID: 7947283

HALISTER: Apple to Jaguar Tempt Bond Buyers as Brexit Vote Stirs Up Market

Apple to Jaguar Tempt Bond Buyers as Brexit Vote Stirs Up Market

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
AAPL US (Apple Inc)

People
Gordon Shannon (TwentyFour Asset Management LLP)
Jamie Stuttard (HSBC Bank PLC)
Ketish Pothalingam (Pacific Investment Management Co LLC)
Luke Hickmore (Aberdeen Asset Management PLC)
Olivier Becker (Oddo & Cie SCA)

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UUID: 7947283

HALISTER: Ex-Deutsche Bank Executive in Asia Sues Lender for $17 Million

Ex-Deutsche Bank Executive in Asia Sues Lender for $17 Million

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
DBK GR (Deutsche Bank AG)

People
Douglas Morton (Deutsche Bank AG)
Amelia Chang (Deutsche Bank AG)
Amy Chang (Deutsche Bank AG)
Gunit Chadha (Deutsche Bank AG)

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UUID: 7947283

HALISTER1: Majestic Cut to Sell, Much to Prove in Medium Term: Canaccord

Majestic Cut to Sell, Much to Prove in Medium Term: Canaccord

(Bloomberg) -- Majestic is only one year into its three year plan under the new executive team, and there remains much to be proved and delivered over the medium term, Canaccord says in note, cutting from hold to sell.
  • Management concedes that it is too early to tell whether the LFL recovery in Retail is simply a bounce or a trend
  • Believes the valuation has moved too far ahead of potential earnings delivery
  • Shares down as much as 1.9% today
  • EARLIER: Majestic Wine FY Revenue Beats Est., Trading Conditions Tough
  • NOTE: Of 5 analyst ratings, 3 are buy, 1 hold, 1 sell, with an average PT of 465p implying ~3% upside
  • NOTE: Stock has fallen -4.7% month-to-date vs a -3.9% fall in the Stoxx 600 Retail index; is up 53.7% YTD vs a -9.8% fall in the SXRP index
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
WINE LN (Majestic Wine PLC)

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UUID: 7947283

HALISTER1: AUCTION PREVIEW: 30Y Germany Seen Rich Outright And Versus Swaps

AUCTION PREVIEW: 30Y Germany Seen Rich Outright And Versus Swaps

(Bloomberg) -- Germany to sell EU1b 2.5% 08/2046 at 11:30am CET; issue is expensive based on a number of metrics, analysts say.
  • Commerzbank (David Schnautz)
    • Last four 30y sector taps of same size were technically covered after seven consecutive uncovered auctions; track record still poor for 30Y auctions
    • Expect limited spill-over into secondary-market valuations as ongoing scarcity concerns, hunt for duration ensure demand for ultra-long bunds
  • Mizuho (Antoine Bouvet)
    • Outright vs swaps cheapened this week from recent record rich levels, symptomatic of increased directionality of 10s30s, rather than a sign of demand for the bond on auction today
    • In relative value, however, 08/2046 has richened vs 07/2044 both in yield, z-spreads terms since last week; bond is therefore less attractive in relative value, but suggests good demand
  • BofAML (Erjon Satko)
    • ECB’s extension of QE purchases (in both volumes and average maturity), June risk events have created right mix for rates to go lower, pushed German 30y yields to lowest on record
    • After recent flattening in 10s30s, 30y looks rich on the curve and cross-country, still expect haven bid
    • Risk of a remain outcome prompts a repricing higher in 30Y yields
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
David Schnautz (Commerzbank AG)
Antoine Bouvet (Mizuho Financial Group Inc)
Erjon Satko (Merrill Lynch International)

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UUID: 7947283

HALISTER1: EU CREDIT DAILY: Muted Markets; Deutsche Sued, Nissan Synergies

EU CREDIT DAILY: Muted Markets; Deutsche Sued, Nissan Synergies

(Bloomberg) -- Risk-asset pricing appears underpinned by optimism the U.K. will vote to stay in the EU, even amid mixed opinion polls and as potential for volatile market conditions around Thursday’s referendum remain elevated, Bloomberg strategist Simon Ballard writes.
  • Credit market trading volumes have shrunk ahead of the referendum; broad uncertainty keeping investors sidelined and the primary market is all but closed for the time being
    • Market trading volume likely to be muted again today; Asia (ex-Japan) risk firm overnight, but tone remains fragile with corp spreads susceptible to macro and micro headline event risk
    • To follow our referendum night live blog, click here.
  • Macro radar today also includes euro zone June consumer confidence; consensus -7.0 unchanged from May
  • Risk Appetite Model shows key theme of rising vol and anchored spreads in countdown to EU referendum
  • CDX IG closed -1.1bps at 78.49 in overnight session; iTraxx Asia Ex Japan IG currently -0.3bps at 141.41
NEWS
  • Corporate News
  • Mitsubishi Motors Forecasts 145b Yen FY Net Loss on Fuel Tests
  • H&M Earnings Decline on Weakest Sales Growth in Three Years
  • Debenhams 3Q LFL Sales Down 0.2%, Expects to Meet Mkt Forecasts
  • Tesla Takeover of SolarCity Not a ‘No-Brainer’ for Investors
  • Nissan CFO Sees Synergies From Mitsubishi Motors’ Stake Purchase
  • Bangchak Petroleum Sees 2016 Net Income Exceeding Last Year
  • Wesfarmers Sees Coal Impairment Charge at Upper End of Forecast
  • Financial News
  • Deutsche Sued for HK$135m by Former Asia Corporate Finance Head
  • Nordea Bank Damage Control Has CEO Revealing Surprising Results
  • Danish Bank Groups Urge Basel to Reconsider Capital Floors
  • Australian Banks Show Mettle as Bond Risk Falls Amid Stock Slump
  • Powerful Storm Set to Hit Asian Bank Profits, McKinsey Says
  • Abu Dhabi’s Megabank Deal Poised to Shatter Mideast M&A Records
  • Credit Rating News
  • SoftBank Upgraded by Debt Market as S&P Holds Out for More
  • S&PGR Affirms, Then Withdraws Rtgs on APN News & Media
  • Other News
  • London’s Markets Are Bracing for Brexit-Fueled Trading Bonanza
  • With or Without Brexit, Singapore Seen as Bond Haven With Korea
ANALYST VIEWS
  • It would appear shorts have been covered, the apprehensions alleviated and, should “Remain” now succeed in the referendum campaign, then Friday’s reaction will possibly not be as great: creditmarketdaily.com
NEW ISSUES
  • No Syndicated New Issues Tuesday
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Topics
Leveraged Finance

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UUID: 7947283

HALISTER: Volkswagen Investors Gear Up for Showdown Over Emissions Damages

Volkswagen Investors Gear Up for Showdown Over Emissions Damages

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
VOW GR (Volkswagen AG)
PAH3 GR (Porsche Automobil Holding SE)

People
Hans Poetsch (Porsche Automobil Holding SE)
Hans-Christoph Hirt (Hermes Equity Ownership Services Ltd)
Herbert Diess (Volkswagen AG)
Martin Winterkorn (Italdesign Giugiaro SpA)
Matthias Mueller (Volkswagen AG)

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UUID: 7947283