HALISTER1: Indonesia CDS Reflects S&P Rating Upgrade Expectations: ANZ

Indonesia CDS Reflects S&P Rating Upgrade Expectations: ANZ

(Bloomberg) -- Indonesia debt insurance cost relative to Turkey’s reflects expectations S&P will upgrade the Southeast Asian nation to investment grade, analyst Danny Suwanapruti at Australia & New Zealand Banking Group writes in note.
  • Five-yr Indonesia CDS around 185bps, compared with similar- rated Turkey’s 266bps, Singapore-based Suwanapruti says
  • Indonesian bond mkt has seen about $5b of inflows this yr, with sentiment helped by policy reforms such as a tax amnesty bill and new monetary policy regime
  • Says been bullish on Indonesian debt all yr
  • ANZ maintains long 15-yr IDR bond call with overweight duration recommendation, driven by domestic factors
  • Indonesia’s 15-yr govt bond yld fell 98bps this yr to 7.99%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Danny Suwanapruti (Australia & New Zealand Banking Group Ltd)

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HALISTER1: INSIDE ASIA: Currencies Mixed in Subdue Trading; KRW, MYR Gain

INSIDE ASIA: Currencies Mixed in Subdue Trading; KRW, MYR Gain

(Bloomberg) -- Asian currencies mixed in subdue trading with Malaysia’s ringgit and Korea’s won gaining after overnight weakness in dollar, while Singapore’s dollar and China’s yuan drop as sentiment remains fragile.
  • Positive Chinese economy data show signs of fading, and this will likely have a negative impact on EM currencies, Tommy Xie at OCBC Bank says in interview
    • Market sentiment and muted BOJ set to increase upward pressure on yen in coming weeks: Xie
  • Onshore and offshore yuan both decline even after PBOC strengthens yuan fixing by most in 2 wks; spread between on- and offshore yuan narrows
    • China’s economy faces downward pressure while it remains resilient, the official Xinhua News Agency reports, citing Vice Premier Zhang Gaoli
  • Yen drops against dollar; BOJ governor Kuroda says desirable for FX to move in stable manner and reflect economic fundamentals; adds that finance minister is responsible for Japan’s FX policy
    • One BOJ member said risks are tilted to downside and bank should bolster easing measures without hesitation if judged necessary: summary of April policy meeting
    • Japan’s current account widened to 2.98t yen ($27.45b) in March, most since 2007; est. was 2.97t yen
  • U.S. Treasuries little changed, with yield on 10-year bonds at 1.726% in Asian trading; initial jobless claims for week ended May 7 est. 270k vs prior week’s 274k
  • Ringgit advances as IPIC pays 1MDB’s bond interest and the Malaysian govt pledges to fulfill its debt obligations
    • March industrial production data, est. 3.0% y/y, most since Dec.
    • 5-yr interest-rate swaps may extend losses toward levels last seen in late 2013 if 1Q is confirmed as weakest quarter since 2010 (see analysis here)
  • Peso gains ahead of BSP policy meeting today, where central bank will maintain overnight borrowing rate at 4.00%, according to 14 out of 15 economists; one sees a 50 bps cut to 3.50%; see analysis here
  • Rupee 1-month forwards halt two-day gain; March industrial production est. 2.5% y/y, most since Oct.
    • April CPI est. 5.05% y/y vs March’s 4.83%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Tommy Xie (Oversea-Chinese Banking Corp Ltd)
Zhang Gaoli (People's Republic of China)

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HALISTER1: INDIA RATINGS: Jindal Power Cut; Gayatri Projects Raised

INDIA RATINGS: Jindal Power Cut; Gayatri Projects 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
  • Jindal Power
    • Long-term bank facilities cut to A- from A+ at Care
    • Cites higher-than-envisaged exposure to holding co. Jindal Steel & Power, increasing working capital intensity
  • Oriental Nagpur Bye Pass
    • LT bank facilities cut to BB+ from BBB- at Care
    • Cites relatively low growth in toll revenue
  • Sangath Infrastructures
    • LT loan facilities cut to D from BB at Crisil
    • Cites delay in meeting term loan obligation due to weak liquidity
UPGRADES
  • Gayatri Projects
    • LT bank facilities raised to BB- from B at Care
    • Cites improvement in turnover, profits
  • Indiana Gratings
    • LT bank facilities raised to A from A- at Care
    • Cites sound financial-risk profile, healthy debt coverage indicators
  • OPG Power Generation
    • Term loans raised to A+ from A at ICRA
    • Cites successful ramp-up of operations of co.’s 4th power plant leading to an improvement in revenue size, cash accruals
  • Silpa Projects
    • LT loan facilities raised to B+ from C at Crisil
    • Cites timely servicing of term debt
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
GAYP IN (Gayatri Projects Ltd)
JSP IN (Jindal Steel & Power Ltd)
6593428Z IN (Indiana Gratings Pvt Ltd)
0490984D IN (OPG Power Generation Pvt Ltd)
819404Z IN (Oriental Structural Engineers Pvt Ltd)

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HALISTER1: USD/KRW May Eye 100-DMA Resistance If BOK Is Dovish: Analysis

USD/KRW May Eye 100-DMA Resistance If BOK Is Dovish: Analysis

(Bloomberg) -- USD/KRW may extend this month’s rally and test resistance at 100-DMA, currently 1,184.35, with BOK perhaps dovish tomorrow given weak economic performance.
  • Four new board members joined BOK last month; seen by many investors as more dovish
  • Still, 15 of 18 economists in Bloomberg survey expect BOK to leave benchmark interest rate at 1.50% tomorrow; three predict 25-bp cut
  • Market is pricing in one rate cut in next six months
  • Economic performance may encourage dovish stance
    • Exports continue to decline, falling 11.2% y/y in April, 16th consecutive month of negative y/y growth
    • Despite April consumer confidence rising to 101 from 100, remains below levels seen before Sewol ferry disaster two years ago
  • BOK may also refer to exchange rate in statement, signaling that it is tolerant of weaker won to aid exports
  • MACD bullishly above zero and signal line; initial resistance at 200-DMA, now 1,175.89
  • USD/KRW down 0.3% at 1,164.40
  • NOTE: David Finnerty is an FX 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)

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HALISTER1: SINGAPORE PREVIEW: March Retail Sales May Rebound After Feb Drop

SINGAPORE PREVIEW: March Retail Sales May Rebound After Feb Drop

(Bloomberg) -- Singapore’s March retail sales may recoup the losses seen in Feb., according to economists forecasts.
  • Sales probably rose 3.6% y/y following a 3.2% decline in Feb., median est. in Bloomberg survey shows; ests. range from -0.5% to +7.1%; data due 1pm local time tomorrow
    • Drop in Feb. sales confounded median est. of a 3.4% gain; SGD rose 0.4% vs USD on April 15, day that data was released
  • Excluding autos, March retail sales are seen falling 3.9% y/y, another survey shows, slowing from Feb.’s 9.6% drop
  • 1Q GDP growth was flat compared with previous three months, data released on April 14 showed; that prompted the MAS to ease monetary stance that day by moving to zero appreciation on the currency in its trade-weighted basket
  • SGD rose 4.3% vs USD in March, finishing the month at 1.3484; FX pair is now at 1.3682
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER: Theranos President Leaves as Blood-Test Startup Adds 3 Directors

Theranos President Leaves as Blood-Test Startup Adds 3 Directors

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
WFC US (Wells Fargo & Co)
3685511Z US (Theranos Inc)
0247409Z US (HHS Centers for Disease Control & Prevention)
AMGN US (Amgen Inc)

People
Sunny Balwani (Theranos Inc)
Elizabeth Holmes (Theranos Inc)
Fabrizio Bonanni (Amgen Inc)
Richard Kovacevich (Wells Fargo & Co)
William Foege (Emory University)

Topics
Management Changes

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UUID: 7947283