Halister News

--ADELA LIN

Economic Release Details: {TWGDCONY Index ECOD} --ADELA LIN

(Bloomberg) -- USD/KRW non-deliverable forwards account for 39.2% of total volume today, according to trades reported to DTCC; USD/TWD second-most active at 15.6%, USD/MYR third at 14.5%.

• Notional amounts traded include:
  • Total $147m of USD/MYR at 4.0870; matures Sept. 21
• Total volume was $10.4b as of 3:02pm HKT; global total yday was $46.0b, with USD/KRW accounting for 21.3%

(Bloomberg) -- Philips Lighting starts trading in Amsterdam after parent company sells 37.5m shares in IPO of its lighting business.

• Spinoff had been marketed at EU18.50-EU22.50/share

(Bloomberg) -- A weak trade performance in April would infer a contraction in Japan’s industrial production that month, economists’ forecasts suggest.

• Factory output likely fell 5.2% y/y after a 0.2% expansion in March, median est. in Bloomberg survey shows; ests. range from -7.6% to -0.7%; data due 8:50am local time on May 31
• Exports fell 10.1% y/y, more than the 9.9% decline seen in Bloomberg survey; imports posted a steeper-than-forecast contraction of -23.3% y/y vs -19.2% forecast, data released on May 23 showed
• USD/JPY reaction to the data may be overshadowed by expectations of a possible delay in implementation of sales tax increase by PM Abe
• USD/JPY slips 0.1% to 109.71 today, set for first weekly decline this month

(Bloomberg) -- Credit market volumes likely to be muted again today after Corpus Christi and before U.K., U.S. holidays on Monday. Near-term tone to risk appetite appears constructive, although any changes in expectations toward June FOMC decision and/or U.K. EU referendum could quickly disrupt sentiment, Bloomberg strategist Simon Ballard writes.

• G-7 has added fuel to Brexit debate with warning on global trade and jobs; uncertainty may add to near-term pressure on GBP corporate credit risk
  • Current social unrest in France also a potential negative for French macro and corporate credit-risk appetite
• Today’s macro data: U.K., Italy, France consumer confidence
• Risk Appetite Model portrays a firm tone to risk ahead of holiday weekend and month end

• CDX IG closed -0.3bps at 77.02 in overnight session; iTraxx Asia Ex Japan IG currently -0.3bps at 141.00

NEWS

• Corporate News
• Laurent-Perrier FY Net EU25.2m; Est. EU25.4m
• Lenovo Revenue Plummets 19% as Motorola Woes Weigh on Profit
• Bashneft Board Recommends Dividend Payout of 50% IFRS Profit
• Jet Airways Rises After Posting First Annual Profit in 8 Years

• Financial News
• Maybank 1Q Net 1.43b Ringgit vs 1.7b Ringgit Y/y
• National Australia Sees Farmers Seeking Loans Amid Crisis

• Credit Rating News
• Moody’s Says New Zealand Budget Projections Are Credit Positive
• S&PGR Affirms ’BBB-’ Debt Rating On Fermaca, Outlk Still Stbl
• Fitch Affirms Anhui Transportation at ’BBB+’; Outlook Stable

• Other News
• Why yield-seekers should look at corporate credit
• Gundlach Says Yellen Speech to Be Dovish as Treasury Bid Soars

ANALYST VIEWS

• Whatever happens, it’s lower and tighter, corporate bond yields and spreads, that is: creditmarketdaily.com

NEW ISSUES

• Enel (Baa2/BBB/BBB+) EU1.26b 10Y notes at MS +95
• FCE Bank (Baa2/BBB/BBB-) GBP400m 6Y bonds at UKT +177
• Demeter Investments BV (BBB+ by S&P) $800m 36NC11 Tier 2 notes with 5.625% coupon
• UniCredit (Baa1/BBB-/BBB+) EU750m 10.5NC5.5 Tier 2 notes with 4.375% coupon
• European IG credit pipeline here and HY credit pipeline here
• Issuers exposed to S-T rollover and interest-rate reset risk here

• NOTE: There will be no EU CREDIT DAILY on Monday. Publication will resume Tues May 31.
• 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.

(Bloomberg) -- Financial Action Task Force will recommend Austria improve money laundering controls at June 22-24 meeting in South Korea, Der Standard newspaper reports, citing advance copy of FATF report dated May 10.

• Large financial sector, proximity to eastern Europe make country potential conduit for money laundering: report
• Austria bank secrecy, tax treatment for foundations come under review: report