HALISTER1: EU CREDIT DAILY: Primary Market May Drive Action; Vodafone Beats

EU CREDIT DAILY: Primary Market May Drive Action; Vodafone Beats

(Bloomberg) -- Asian risk markets trading higher overnight suggests a more buoyant tone Tuesday in European credit; weaker price action in synthetics reflects underlying fragility in risk asset sentiment, Bloomberg strategist Simon Ballard writes.
  • Market participants will be hopeful of a pickup in trading volumes today after Monday’s holiday, led once again by the primary market
    • Banco Hipotecario 2020 tap extends sale to May 18; may see less benefit than expected from recent sovereign issue
  • Risk Appetite model shows volatility contained, even as spread dispersion increases
  • CDX IG closed +0.03bps at 81.52 in overnight session; iTraxx Asia Ex Japan IG currently -1.8bps at 142.83
NEWS
  • Corporate News
  • Vodafone 4Q Organic Service Revenue Growth Beats Ests.
  • Premier Foods Raises FY17 Sales Growth Outlook
  • Iliad First-Quarter Sales Increase 6.6% on Wireless Promotions
  • AstraZeneca Says Benralizumab Studies Achieved Primary Endpoint
  • Financial News
  • Dutch Banks Leap to Fill Commodity Trade-Finance Gap Left by BNP
  • BBVA Creates Global Finance Division, Expansion Reports
  • Emirates Islamic Bank to Hold Bond Investor Meetings for Sukuk
  • Banco Hipotecario Extends Bonds Sale Close to May 18
  • Credit Rating News
  • S&PGR Rates Westpac Banking Corp.’s Capital Notes ’BBB-’
  • S&PGR Afrms Rtgs On Suramericana Subs, Outlook Neg
  • Other News
  • BlackRock’s Fink Says ‘All Have to’ Worry About China Debt
  • After 41 Years, Saudi Arabia’s Treasuries Holdings Are Unveiled
ANALYST VIEWS
  • The word is that primary is going to burst out of the starting gates (in) this shortened week. All said, the pressure on secondary is very limited given the amount of supply seen over the past couple of weeks (courtesy of the ECB impending grabfest): creditmarketdaily.com
NEW ISSUES
  • Zero New Issuance Monday; 5th Zero Day Of The Year
  • European IG credit pipeline here and HY credit pipeline here
  • Issuers exposed to S-T rollover and interest-rate reset risk here
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
VOD LN (Vodafone Group PLC)

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UUID: 7947283

HALISTER: France Plans to Sell Some Listed Investments, Vial Tells Echos

France Plans to Sell Some Listed Investments, Vial Tells Echos

(Bloomberg) -- Govt. needs the cash to fund the majority of a EU5b capital increase for Areva, and for to inject EU3b into EDF, Martin Vial, head of the French agency for state holdings, tells Les Echos newspaper in an interview.
  • Govt. wants to keep blocking minority in Orange, Vial says
  • Peugeot Citroen has had a “spectacular” recovery, Vial says, declining to comment on govt. plans for its stake
  • Nice, Lyon airport privatization may bring receipts of EU2.5b-EU3b, Les Echos says.
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
RNO FP (Renault SA)
EDF FP (Electricite de France SA)
ORA FP (Orange SA)
UG FP (Peugeot SA)
ENGI FP (Engie SA)

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HALISTER1: INSIDE G-10: AUD Soars on RBA Minutes; GBP Jumps on U.K. Poll

INSIDE G-10: AUD Soars on RBA Minutes; GBP Jumps on U.K. Poll

(Bloomberg) -- AUD surges after RBA’s minutes from May policy meeting suggest a high bar for rate cut in June. GBP climbs after a U.K. poll shows 55% favor staying in EU; crude oil rises to six-month high, approaching $50/bbl level.
  • AUD/USD +0.93% at 0.7357, vs 0.7282-0.7366 range
    • Option-related orders around 0.7360 helping cap FX pair’s gains, trader says
    • It’s worth remembering that RBA had similar timing discussion when central bank cut rates in Feb. 2015, and it subsequently lowered again in May 2015: Capital Economics
    • Iron-ore futures +0.5%, gold +0.4% and copper +0.4%
  • GBP/USD +0.53% at 1.4479, vs 1.4398-1.4494 range
    • Heavy two-way flow seen after GBP/USD stops above 1.4450 triggered in early Singapore trade, traders say
    • 55% would vote for remaining in EU vs 40% voting for Brexit, ORB/Telegraph poll shows
  • NZD/USD +0.27% to 0.6809 vs 0.6779-0.6841 range
    • FX pair trims early gains after 2-year inflation expectations hold near 22-year low
    • FX options expiring today include strike 0.6800 for NZ$246m: DTCC data
  • USD/CAD -0.30% at 1.2856 vs 1.2845-1.2912 range
    • Brent crude futures up 0.5% to $49.19/bbl, WTI crude futures up 0.9% to $48.17/bbl
  • BBDXY -0.15% at 1,184.84, vs 1,184.15-1,187.49 range
  • Treasury 10-year yield little changed at 1.752%
    • Saudi Arabia’s Treasuries holdings are unveiled
  • EUR/USD -0.04% at 1.1316, vs 1.1313-1.1326 range
    • ECB’s Praet, Nouy and Costa speak later today
  • USD/JPY -0.09% at 108.93, vs 108.89-109.11 range
    • Japan to raise sales tax as planned unless there’s serious event, and to make decision on sales-tax increase at appropriate time, PM Abe says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER: Cryan Has Toughest European Banking Job, Aberdeen’s Gilbert Says

Cryan Has Toughest European Banking Job, Aberdeen’s Gilbert Says

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
ADN LN (Aberdeen Asset Management PLC)
DBK GR (Deutsche Bank AG)
HSBA LN (HSBC Holdings PLC)
BARC LN (Barclays PLC)

People
John Cryan (Deutsche Bank AG)
Martin Gilbert (Aberdeen Asset Management Inc/USA)
Tidjane Thiam (Credit Suisse Group AG)
James Chappell (Joh Berenberg Gossler & Co KG)
James Staley (Barclays PLC)

Topics
CEO Interviews

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UUID: 7947283

HALISTER1: INDIA RATINGS: Sabitri Cut; Starline Cars, Vacmet Raised

INDIA RATINGS: Sabitri Cut; Starline Cars, Vacmet Raised

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
  • To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery
DOWNGRADES
  • Sabitri Industries
    • LT loan facilities cut to D from B at Crisil
    • Cites delays in stabilization of plant
UPGRADES
  • Starline Cars
    • LT loan facilities raised to BB from BB- at Crisil
    • Expects business, financial-risk profiles to improve over medium term
  • Vacmet India
    • LT loan facilities raised to BBB+ from BBB at Crisil
    • Expects business-risk profile to improve over medium term due to rising demand, increased capacity utilization
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
6589388Z IN (Vacmet India Ltd)

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HALISTER1: INSIDE ASIA: Currencies Up on Oil, Stocks; Aussie Buoyed by RBA

INSIDE ASIA: Currencies Up on Oil, Stocks; Aussie Buoyed by RBA

(Bloomberg) -- Aussie dollar rallies over 1% after RBA minutes show the central bank had considered holding at the last policy meeting to await more information. Asian currencies are mostly higher with won and ringgit leading gains as regional stock markets and oil prices climb.
  • Recent gains in oil prices have been stronger than expected, improving sentiment for riskier assets, Tsutomu Soma, Tokyo- based general manager of the fixed-income department at SBI Securities, says in interview
  • MSCI Asia Pacific Index rises 0.6%; WTI advances 0.9%
  • Australian dollar gains for two days
    • RBA discussed cutting rate on May 3 or awaiting more information
    • RBA minutes may be taken by market as second rate cut is less likely, Capital Economics says
  • Won reverses two-day losses, to lead gains among Asian EM
    • S. Korean banks will join Shanghai yuan-won direct trading as market makers, Seoul Economic Daily reports
  • Ringgit snaps two-day decline after WTI crude rose overnight to a six-month high
    • Swiss bank BSI said to be investigating employees and their dealings related to 1MDB
    • BNM will hold policy rate at 3.25% on May 19, survey shows
  • Philippine peso advances for third straight day
    • Presumptive Philippine President Duterte’s PDP-Laban Party signing coalition pact with former Senate President Manny Villar’s Nacionalista Party
    • Duterte will offer Cabinet position to exiled founder of Communist Party of Philippines, Jose Maria Sison, who led armed rebellion against state
  • Singapore dollar rallies for third straight day
    • April Non-oil domestic exports -7.9% y/y vs est. -8.4%
    • Zero appreciation currency policy working one month on; see chart story
  • China’s yuan recovers from three-month low hit yesterday
    • PBOC raises reference rate 0.22% to 6.5200 per dollar
    • Chinese economy will expand 6.6% in 2Q: Bloomberg survey
    • Capital outflow pressure continued to ease in April, State Administration of Foreign Exchange says
    • President Xi urges local govts to promote supply-side reforms, according to CCTV report
  • Yen little changed
    • Finance Minister Aso says G-7 meeting of finance ministers and central bank governors will discuss FX as needed at Summit
    • Japanese net purchases of long-term securities in the U.S. climbed to net $42.7b in March from $10.7b in Feb., highest in Treasury Department data dating back to 1977
    • USD/JPY may rally to test resistance at 50-DMA of 110.28 in short-term if Japan’s 1Q GDP undershoots forecasts, Bloomberg strategist David Finnerty writes
  • Indonesia rupiah gains
    • Bank Indonesia will probably focus on adopting new policy framework in Aug. before making any change to interest rates, Finance Minister Bambang Brodjonegoro says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Bambang Brodjonegoro (Republic of Indonesia)
Jose Sison (Communist Party Of Philippines)
Manuel Villar ((PHL)Senate)
Tsutomu Soma (Softbank Corp)

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UUID: 7947283