HALISTER1: INDIA RATINGS: Great India Steel Cut; Deccan Cements Raised

INDIA RATINGS: Great India Steel Cut; Deccan Cements Raised

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
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DOWNGRADES
  • Great India Steel Fabricators
    • Long-term rating cut to B from BB- at ICRA
    • Cites stretched working capital requirements, seasonality, moderate scale of operations
  • Remi Edelstahl Tubulars
    • LT rating cut to BB+ from BBB- at Crisil
    • Cites pressures due to decline in turnover due to less- than-anticipated demand
UPGRADES
  • Bhagwati Power and Steel
    • LT rating raised to BBB- from BB+ at Crisil
    • Cites improvement in business, financial risk profile
  • Deccan Cements
    • Term loans raised to A from BBB+ at ICRA
    • Cites improvement in operational, financial performance of co. in FY16
  • P.P. Steel
    • LT rating raised to BB+ from BB at Crisil
    • Cites expectation co. will maintain improved business, financial risk profiles
  • Vedika Credit Capital
    • LT rating raised to BB from BB- at Crisil
    • Cites improvement in mkt position, steady asset quality
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
1018907D IN (Century Appliances Ltd)
9255885Z IN (Kail Ltd)
1263624D IN (Millennium Appliances India Ltd)
PI IN (PI Industries Ltd)
TRCL IN (Ramco Cements Ltd/The)

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HALISTER1: INSIDE ASIA: Yen Surges Past 105 to 21-Month High as BOJ Holds

INSIDE ASIA: Yen Surges Past 105 to 21-Month High as BOJ Holds

(Bloomberg) -- Japanese yen jumped to its strongest level since Sept. 2014 after BOJ refrains from expanding stimulus as Governor Kuorda studies the impact of his negative-rate policy.
  • USD/JPY slides as much as 1.4% to 104.53
    • BOJ votes 8-1 to keep its monetary base target unchanged, votes 8-1 on asset-purchase program and votes 7-2 to maintain negative rate policy
    • USD/JPY selling accelerates after 105.00 option barriers triggered, according to Asia-based FX traders.
    • BOJ says it will add stimulus if needed, and CPI may be slightly negative or about 0% for time being
  • BOJ decision comes after Fed signaled a slower pace of rate increase; Fed decision puts onus on BOJ to act to prevent deflation, Rabobank says before Japanese central bank statement
  • Fed decision sent dollar falling, boosting most Asian currencies
    • Still, risk aversion play leading up to next week’s Brexit event will supersede Fed, says Stephen Innes, senior trader at Oanda Asia Pacific
  • Aussie reversed gains to slip 0.14% to 0.7397 after revision to April job data; Gains in April cut to 800 from 10,800
    • Employment in May rose 17,900 from prior month; economists forecast 15,000 gain
    • Aussie bond yields drop to record low below 2% amid Brexit fears
  • Onshore yuan slips; downward pressure on Chinese yuan likely to increase in coming days, as market shifts focus from Fed to Brexit: Natixis
    • China may cut benchmark lending rate this month to support economy, and as dovish Fed posts less outflow pressure: Commerzbank
    • China’s holdings of U.S. equities sank $126b, or 38% from July to March, while keeping its U.S. Treasury holdings stable
  • South Korean won rises while sovereign bond yields hit record lows after Fed holds rates and lowers dot plot projections
    • Nation is reviewing various ways to increase fiscal spending in 2H although govt hasn’t made decision on whether to draw up extra budget: Finance Ministry
  • Southeast Asian currencies advance, with baht and rupiah leading gains
  • Rupiah gains before Bank Indonesia decision today
    • BI is likely to keep reference rate unchanged at 6.75% according 18 of 29 economists in Bloomberg survey; rest see cut to 6.50%
    • Stay long on 10-yr govt bonds, targeting 7%, as BI’s monetary easing bias is main support for nation’s bond mkt, HSBC says in note today
    • Relatively low level of inflation allows central bank to proceed with policy rate reductions; next easing is expected today; more easing likely this year
  • Philippine central bank doesn’t need to match any Fed rate increase, Deputy Governor Guinigundo says in televised interview yesterday
    • Says peso to stay stable in long run
    • Malaysia plans to change way it sets ringgit’s daily reference rate to boost transparency, BNM said late yday; will also extend dollar-ringgit trading to 6pm from 5pm local time
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Stephen Innes (OANDA Corp)

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HALISTER1: USD/SGD May Test 100-DMA Resistance If NODX Misses Est: Analysis

USD/SGD May Test 100-DMA Resistance If NODX Misses Est: Analysis

(Bloomberg) -- A bigger-than-expected fall in Singapore’s April non-oil domestic exports may provide the catalyst for USD/SGD to test 100-DMA resistance at 1.3726 near term, Bloomberg strategist Andrew Robinson writes.
  • Exports fell 1.6% y/y following 7.9% contraction in March, Bloomberg survey shows; data due 8:30am local time tomorrow
    • Ests. range from -8.5% to +3.8%; top forecaster, as ranked by Bloomberg, has most pessimistic estimate
  • Exports missed estimates on seven occasions in past 12 months
    • SGD fell on a trade-weighted basis on four of those days, according to Morgan Stanley index
  • USD/SGD down 0.1% at 1.3507 today
  • 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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