HALISTER1: Nigeria May Delay Minimum Capital Rule for Banks: RenCap

Nigeria May Delay Minimum Capital Rule for Banks: RenCap

(Bloomberg) -- Nigeria’s central bank may delay minimum capital adequacy ratio of 16% for systemically important banks, which is scheduled to take effect on July 1, Renaissance Capital analysts Adesoji Solanke, Olamipo Ogunsanya say in note.
  • “We view this positively given the difficulties in boosting capitalization levels in this environment”
  • Ongoing FX shortages have deteriorated; bank shares may rally post naira devaluation on back of FX flows, although it may fuel another round of capital pressure and NPL formation
  • Fidelity Bank MD returned to role after been questioned by Economic and Financial Crimes Commission, acting MD Mohammed Balarabe appointed deputy; co. running business process review with PwC, benefits of which will be apparent from 4Q and into 2017
  • Guaranty Trust Bank in talks to raise $200m from development finance instutitions at ~100bps than would’ve been in past
  • United Bank for Africa plans to expand to 25 African countries over next 3-5 years from 19; expansion won’t require new capital; co. seeing some stress in commerce, trade finance book
  • Access Bank is net long dollars; in event of naira devaluation to 300 vs USD, impact on balance sheet will be 10b naira, according to bank
  • FNB Holdings to address capital position by shrinking risk- weighted assets, retain more earnings, efficiency improvements
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
FIDELITY NL (Fidelity Bank PLC)
GUARANTY NL (Guaranty Trust Bank PLC)
UBA NL (United Bank for Africa PLC)

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UUID: 7947283

HALISTER: Advance Auto Parts Falls After Profit Trails Analysts’ Estimates

Advance Auto Parts Falls After Profit Trails Analysts’ Estimates

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
AAP US (Advance Auto Parts Inc)
0290875D US (Starboard Value LP)

People
Jeffrey Smith (Starboard Value LP)
Michael Norona (Advance Auto Parts Inc)
Thomas Greco (Advance Auto Parts Inc)

Topics
Who's News - People
Management Changes

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UUID: 7947283

HALISTER: Church & Dwight Up 4.2% Pre-Mkt on Report of Possible Bid

Church & Dwight Up 4.2% Pre-Mkt on Report of Possible Bid

(Bloomberg) -- Reckitt Benckiser said to plan to offer $23b next week to buy Church & Dwight, Negocios.com reports, citing people with knowledge of the plans it didn’t identify.
  • CHD up 4.2% pre-mkt to $101-share
  • Reckitt didn’t immediately respond to email seeking comment; yday, Reckitt said co. doesn’t comment on rumors; CHD did not respond to multiple requests for comment
  • NOTE: Yday: Church & Dwight Now Up 3.8% Pre-Mkt, Paring Earlier 31% Gain
  • NOTE: Yday, Henkel, Reckitt More Likely CHD Buyers Than PG: Jefferies; Church & Dwight pared pre-mkt gain of 31% following Negocios.com report
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
CHD US (Church & Dwight Co Inc)
RB/ LN (Reckitt Benckiser Group PLC)

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UUID: 7947283

HALISTER: Barclays Corporate Bank Head John Winter to Leave This Month

Barclays Corporate Bank Head John Winter to Leave This Month

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
BARC LN (Barclays PLC)

People
James Staley (Barclays PLC)
John Winter (Barclays PLC)
Joseph Gold (Barclays PLC)
Kevin Wall (Barclays PLC)

Topics
Financial Firm Departures
Who's News - People
Management Changes

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UUID: 7947283

HALISTER1: Sell Belly of 5s10s30s Bund Fly on Renewed Risk Aversion: SG

Sell Belly of 5s10s30s Bund Fly on Renewed Risk Aversion: SG

(Bloomberg) -- 5s10s30s bund fly tends to move up with rising volatility, which is likely to increase either driven by a hawkish Fed turn that puts the whole risk complex in jeopardy, or more likely as China worries come to the fore again, Societe Generale strategist Jamal Meliani writes in client note.
  • Sell 10Y in 5s10s30s fly at -18bp
    • Sell RXM6 versus OEM6 and UBM6; target -10bp, stop -23bp
  • Seasonal pause in the issuance at the ultra-long end after the strong increase seen in 1Q and 2Q should help re-flatten the 10s30s segment of the fly
  • Risks: further fall in implied volatility combined with unexpected further strong issuance at the long end; unexpected less dovish ECB may also hurt the 5y disproportionally
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jamal Meliani (Societe Generale SA)

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UUID: 7947283

HALISTER1: Investec Wealth Buys Gold to Hedge Against U.S. Political Risk

Investec Wealth Buys Gold to Hedge Against U.S. Political Risk

(Bloomberg) -- Investec Wealth & Investment favors gold over bonds in its currency hedging mix, mainly to guard against the risk of protectionism stemming from political developments in the U.S. and other countries.
  • Gold is also a possible way to ensure against risk of central banks using so-called helicopter money as stimulus, which would be inflationary, head of fixed interest Darren Ruane says in a phone interview
  • Investec Wealth added 3% to gold in balanced portfolios as an alternative FX play; increased gold exposure by selling international government bonds, interchanging one tail-risk hedge for another
    • Sees gold as a non-paper currency and real-value asset class priced in dollars
    • Also reduced hedge fund exposure following disappointing performance
  • Ruane sees a lot of uncertainty over what a Trump presidency would mean for the U.S. and global economy
    • Possible trade barriers against China could lead to currency wars, the winner of which would probably be difficult to predict
  • Investec Wealth is positive on USD; Fed seen as only major central bank positioned to raise rates
    • Portfolio running long JPY positions versus GBP through Japanese equities; sees yen as a risk-off trade
    • Also holds long Japanese equity position given potential for more BOJ monetary stimulus
    • GBP likely to underperform vs G-4 currencies over the next month if polls suggest close call on Brexit vote
    • EUR/USD may drop a further 5% this year even if Investec Wealth’s previous call for parity currently feels very far away
  • NOTE: Investec W&I manages GBP26b, according to Ruane
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Darren Ruane (Investec PLC)

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UUID: 7947283