Halister News

(Bloomberg) -- Low-volatility in financial markets seen this year may not improve further or even remain favorable for Brazil for long, on either external or domestic front, Santander says in report signed by Mauricio Molan.

• However, current benign environment will probably continue to be an important driver for Brazilian assets in near term
  • BRL estimate for end-2017 cut to 3.20/USD from 3.50/USD; end-2018 estimate cut to 3.50/USD from 3.84/USD
• Selic rate estimate for 2017 and 2018 cut to 7.5% from 8.5%
  • Neutral interest rate in Brazil may be between 3.5% and 5.5%; ample slack in economy indicates that interest rates could slide below neutral and remain there for one or two years
• GDP growth forecast for 2017 cut to 0.5% from 0.7%; forecast for 2018 cut to 2.5% from 3.0%
  • Revision incorporates recent data showing that investments have not recovered at all since the beginning of the year
• 2017 inflation forecast cut to 3.8% from 4.2%

To contact the reporter on this story: Danielle Chaves in Sao Paulo at djelmayer@bloomberg.net To contact the editors responsible for this story: Giulia Camillo at gcamillo@bloomberg.net Leonardo Lara

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

(Bloomberg) -- Bund futures (RX1) technical levels in focus.

• Daily Trend Bias: Bullish
• Comment: Bulls stay in charge as market prepares a launch at current monthly peak -- 164.64
  • Resistance: 164.34; 164.44-53; 164.64; 164.74; 164.88; 164.99; 165.33
  • Support: 164.12; 164.02; 163.91; 163.71; 163.50; 163.36; 163.25
• NOTE: Roll-adjusted by difference in GFUT
• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net

(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

• BTM Industries
  • Long-term bank facilities cut to BB- from BBB- at Care
  • Cites over-utilization in cash credit account
• Premier Alcobev
  • LT bank facilities cut to D from B+ at Crisil
  • Cites delay in servicing of term loans
• Sai Regency Power
  • NCDs cut to BB- from BB+ at Brickwork
  • Cites weakened operational performance

UPGRADES

• 20 Microns
  • LT bank facilities raised to BB+ from BB at Crisil
  • Cites sequential decline in indebtedness due to repayment of term loans
• Aria Hotels
  • LT bank facilities raised to BBB- from BB at Care
  • Cites improved operating, financial performance
• Caddie Hotels
  • LT bank facilities raised to BBB from BBB- at Care
  • Cites increase in operating income
• Emami Agrotech
  • LT bank facilities raised to A- from BBB+ at Care
  • Cites consistent growth in scale of operations, profitability
• Gujarat Narmada Valley
  • Term loans raised to AA from AA- at ICRA
  • Cites healthy performance of chemical division
• Honer Developers
  • Cash credit raised to BB from BB- at ICRA
  • Cites healthy bookings
• RSB Cottex
  • Fund-based facility raised to BB+ from BB at Brickwork
  • Cites growth in revenue