HALISTER1: Ibovespa Futures Rise as Temer Replaces Minister Linked to Probe

Ibovespa Futures Rise as Temer Replaces Minister Linked to Probe

(Bloomberg) -- Contracts expiring in June add 0.7% to 50,010 in Sao Paulo.
  • Acting President Michel Temer dismissed Planning Minister Romero Juca amid allegations he wanted to obstruct a probe into graft and money laundering
  • Fixture manufacturer Duratex may be active after JPMorgan recommends buying stock
  • Commodity producers including miner Vale may move as raw materials advance
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: Swiss Regulator May Penalize Banks Over 1MDB, Petrobas (Correct)

Swiss Regulator May Penalize Banks Over 1MDB, Petrobas (Correct)

Alert: HALISTER1
Source: BN (Bloomberg News)

Tickers
0206021D MK (1Malaysia Development Bhd)
PETR4 BZ (Petroleo Brasileiro SA)

People
Mark Branson (Eidgenossische Finanzmarktaufsicht FINMA)
Mohd Abdul Razak (Federation of Malaysia)

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UUID: 7947283

HALISTER1: Short EM, AUD as Fed Tightening Impact May Be Misunderstood: UBS

Short EM, AUD as Fed Tightening Impact May Be Misunderstood: UBS

(Bloomberg) -- Stay short EM as well as assets and currencies exposed to EM, such as AUD, as Fed tightening may not be properly understood, analysts including Jeff Greenberg write in client note yday.
  • Also recommend hedges for long DM equities, including long EUR/SEK and favor longer duration US IG bonds vs HY since Fed policy may pressure firms with weaker credit fundamentals
  • While Fed only lifted rates by 25bps in Dec., calculations show financial markets responded as if it had done more like 273bps of tightening, but only a 134bps rebound as the Fed turned more dovish
  • Next increase may not cause the same degree of tightening as the first, but the distance the Fed has to travel is shorter than in past cycles so the central bank may be further into its tightening cycle than is perceived
  • Estimate just 200bp-250bp of rate rises are enough to get the Fed through a full cycle
  • The Fed runs the risk of an unintended cooling of the economy with fewer-than-intended hikes; obviously a risk for equities and a driver for flatter curves in fixed income
  • NOTE: The Fed must appreciate the danger that higher interest rates could pose for the U.S. economy, Krishna Memani, CIO of OppenheimerFunds said yday
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jeff Greenberg (UBS Global Asset Management Japan Ltd)

Topics
Leveraged Finance

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UUID: 7947283

HALISTER: Best Buy Drops 5.7%; 2Q Adj. EPS View Trails Est.

Best Buy Drops 5.7%; 2Q Adj. EPS View Trails Est.

(Bloomberg) -- Best Buy sees 2Q adj. EPS 38c-42c, est. 50c (range 42c-54c); hurt by expected 3c negative impact from lapping of periodic profit sharing benefit, ~6c negative impact from carryover of last Sept.’s services pricing investment.
  • Also includes 3c-4c negative impact from Japan earthquake in digital imaging
  • Sees 2Q rev. $8.35b-$8.45b, est. $8.31b (range $8.16b- $8.44b)
  • Sees 2Q enterprise comps. “about flat”
  • Expects “slight declines” in revenue in 1H of year followed by growth in back half
  • 1Q adj EPS 44c, 31c-35c (Feb. 25). est. 35c (range 30c-37c)
  • 1Q rev. $8.44b, saw $8.25b-$8.35b, est. $8.29b (range $8.13b-$8.39b)
  • 1Q enterprise comp. sales (incl. installment billing) -0.1%, saw down 1%-2%, est. -1.6% (Consensus Metrix avg of 14 ests.)
    • 1Q domestic comp. -0.1%, est. -1.5%
  • 1Q gross margin 25.4% vs est. 22.8%
  • Still targets “approximately flat” year rev., non-GAAP operating income, with non-GAAP EPS growth driven by share repurchases
  • Has no new material information as it relates to product launches throughout the year
  • Chief Administrative Officer/CFO Sharon McCollam stepping down June 14
    • Corie Barry, current chief strategic growth officer, will become CFO; Asheesh Saksena to succeed Barry
  • Call 8am, 800-327-5138 pw 4553353
  • See PREVIEW BEST BUY 1Q: CE Challenged Amid Lack of New Products
Statement NSN O7OH80MEQTXU
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
BBY US (Best Buy Co Inc)

People
Sharon McCollam (Best Buy Co Inc)

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UUID: 7947283