HALISTER1: Sell Bund vs UST in Indirect Bearish Trades in Europe: Barclays

Sell Bund vs UST in Indirect Bearish Trades in Europe: Barclays

(Bloomberg) -- Recommend investors do not rush to fade the bund selloff; instead, use indirect duration trades such as short 10Y bunds vs USTs, short bund ASW vs Eonia to express a bearish bias on EUR rates, Barclays strategists including Cagdas Aksu write in client note.
  • Maintain indirect short bias given:
    • Unlikely to see further ECB easing anytime soon
    • Upcoming redemptions, greater QE have been well flagged; from May onward, supply/demand dynamic turns much less market-friendly
    • EUR breakevens are little changed vs U.S. 5Y5Y fwd breakevens
    • 10Y bund yields already reflect decent amount of risk premium for U.K. referendum
    • As a result of low yield lvl, EGB issuers continue to be active in the sector in an effort to extend duration
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Cagdas Aksu (Barclays PLC)

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UUID: 7947283

HALISTER: VW Doubles Provisions for Cheating Scandal to $18.2 Billion

VW Doubles Provisions for Cheating Scandal to $18.2 Billion

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
VOW GR (Volkswagen AG)
FCAU US (Fiat Chrysler Automobiles NV)

People
Bernd Osterloh (Volkswagen AG)
Hans Poetsch (Porsche Automobil Holding SE)
Herbert Diess (Volkswagen AG)
Martin Winterkorn (Italdesign Giugiaro SpA)
Matthias Mueller (Volkswagen AG)

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UUID: 7947283

HALISTER: German Automakers to Service 630,000 Cars in Voluntary Recall

German Automakers to Service 630,000 Cars in Voluntary Recall

(Bloomberg) -- Volkswagen, Audi, Mercedes, Opel, Porsche participating in Europewide voluntary recall linked to emission controls, according to German government document obtained by Bloomberg.
  • Recall addresses thermal engine protection device: document
  • Follows probe by German automotive regulator KBA in wake of Volkswagen diesel emission cheating
  • 53 diesel models with Euro 5 and Euro 6 certification were tested: document
  • NOTE: Daimler Probes Diesel Emissions as Quarterly Profit Slumps Link
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
VOW GR (Volkswagen AG)
BMW GR (Bayerische Motoren Werke AG)
DAI GR (Daimler AG)
GM US (General Motors Co)

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UUID: 7947283