HALISTER1: INSIDE SINGAPORE: USD/SGD Riskies Least Bullish in Three Months

INSIDE SINGAPORE: USD/SGD Riskies Least Bullish in Three Months

(Bloomberg) -- USD/SGD’s risk reversals are least bullish in three months amid broad weakness in U.S. dollar.
  • One-month risk reversals decline 0.01 vol to 0.35 vol, with calls favored over puts, which is lowest since March 7
    • Option volatility smile shows demand for calls has fallen faster than that for puts this month; click here for chart
  • USD/SGD rises 0.1% to 1.3529, trading near 61.8% Fibonacci retracement of 1.3539 in one-month rally started April 19; FX pair’s June 6 low matched this retracement level
  • ANZ recommends buying 10-yr govt bonds at 2.08%, target 1.85% with stop-loss at 2.22%, senior strategist Irene Cheung wrote in June 7 note; bond is cheap on 5-yr, 10-yr and 15-yr fly as well as on asset-swap basis
  • Six-month swap-offer rate fell to 1.33139% on June 7 from 1.33839%
  • Yield on 10-yr govt bond added 2 bps to 2.10% on June 7
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Irene Cheung (Australia & New Zealand Banking Group Ltd)

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UUID: 7947283

HALISTER1: Market Pricing on RBNZ Suggests Decision Will Surprise: Analysis

Market Pricing on RBNZ Suggests Decision Will Surprise: Analysis

(Bloomberg) -- The finely-balanced expectations on RBNZ’s rate decision this Thursday suggest that whatever the central bank decides will surprise the market and move NZD, Bloomberg strategists David Finnerty and Michael Wilson write.
  • Market pricing and economist expectations have shifted in the past week in opposite directions
    • OIS pricing for an RBNZ rate cut on June 9 is pared to 30.2% over last 24 hours in wake of RBA decision, down from 40.2% probability
    • Median forecast of economists surveyed by Bloomberg expect RBNZ to leave cash rate at 2.25%, with a cut only in August. A survey published on June 3 showed the economists expected a cut in June and no change for rest of year
  • CFTC data shows leveraged funds turned net buyers of NZD in week ended May 31
    • After two prior weeks of net selling, leveraged funds have boosted their net NZD long positions to 10,822 contracts, near year-to-date highs of 12,330
  • NZD/USD currently down 0.1% to 0.6969; 50-DMA at 0.6850
    • Pair reached 0.6982 yday, highest since a month ago
  • In March, RBNZ cut rates by 25 bps and said further easing might be required because of decline in range of inflation expectations
    • NZ 2Q 2-yr inflation expectations rose to 1.64% in 2Q from 1.63% in 1Q; Brent crude oil rallied from $27.10/bbl to more than $50/bbl so far this year
    • ANZ’s May business confidence inflation expectations remained at 1.4% for the fourth straight month
  • RBNZ said in April the exchange rate remains higher than appropriate given New Zealand’s low commodity export prices
  • NOTE: Michael Wilson and David Finnerty are FX strategists who write for Bloomberg. The observations they make are their own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER: A BlackRock Bond ETF Heralds New World Order in Emerging Markets

A BlackRock Bond ETF Heralds New World Order in Emerging Markets

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
BLK US (BlackRock Inc)
21429Z US (Pacific Investment Management Co LLC)
VWO US (Vanguard FTSE Emerging Markets ETF)

People
Edward Lopez (Van Eck Associates Corp)
Karin Anderson (Morningstar Inc)
Matthew Tucker (Barclays Global Investors)
Peter Kraus (AllianceBernstein Holding LP)
Stephen Tu (Moody's Investors Service Inc)

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UUID: 7947283

HALISTER: Alstom, GE Accused of Decade-Old Bribes by Ex-Petrobras Official

Alstom, GE Accused of Decade-Old Bribes by Ex-Petrobras Official

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
GE US (General Electric Co)
ALO FP (Alstom SA)
PETR4 BZ (Petroleo Brasileiro SA)

People
Dilma Rousseff (Federative Republic of Brazil)
Fernando Cardoso (Brown University)

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UUID: 7947283

HALISTER1: SE Asian Stocks to Watch: Adaro Energy, Berjaya Land, Sri Trang

SE Asian Stocks to Watch: Adaro Energy, Berjaya Land, Sri Trang

(Bloomberg) -- MSCI South East Asia Index rose 1.2% yesterday, is up 8.3% this year. 21 stocks trade ex-div., for full list click here. Indonesia
  • Indonesia’s Top Fund Likes Bonds More Than Stocks on Tax Amnesty
  • Adaro Energy (ADRO IJ): To buy BHP’s stake in joint coal operation for $120m
Malaysia
  • Berjaya Land (BL MK): Sells 9m shrs in Berjaya Sports Toto at avg. price of 2.86 rgt each
  • DRB (DRB MK): Says Proton unit completed issuance of preferred shares to Govco.
  • Mercury Industries (MER MK): Gets 9.8m-ringgit contract
Philippines
  • Goldman Sachs Comes Out Bullish on a Strong-Willed Duterte
    • As Duterte Woos China, Casino Tycoon Gives Thumbs Up
  • Overseas Investors Bought Net 2.4b Pesos ($53.1m) of Philippine Stocks Yesterday
  • PNB (PNB PM): Sells PNB Life Insurance stake to Allianz for $66m
Singapore
  • Aspial (ASP): Completes purchase of shares in AF Global (AFG SP)
  • Mermaid Maritime (MMT SP): Wins six subsea contracts with an estimated aggregate contract value of $15 million
  • T T J Holdings (TTJ SP): 3Q net income S$13.6m y/y vs S$1.9m y/y
Thailand
  • Sri Trang (STA TB), Thai Rubber (TRUBB TB): ANRPC sees weak rubber demand
Vietnam
  • Vietnam to Accelerate Bad-Debt Cleanup With First Cash Purchase
  • Vingroup (VIC VN): Cut to neutral from outperform at Credit Suisse
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Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283