HALISTER1: Favor EUR Swaps Flattening, 5y5y Inflation to Move Lower: Citi

Favor EUR Swaps Flattening, 5y5y Inflation to Move Lower: Citi

(Bloomberg) -- Favor flattening strategies in EUR swaps and continue to see 5y5y EUR inflation declining toward 1.20%, Citigroup strategists including Harvinder Sian write in note.
  • Target 0.7% on nominal 5y5y as expect QE flow effects to push real rates lower
  • Increasingly skeptical of ECB rate cuts as evidence mounts that bank profitability damage interferes with the transmission mechanism
  • Enhanced QE program likely to remain supportive for EGBs, especially given that the vast majority of the extra EU20b a month of buying is likely to benefit PSPP before corporate credit purchases begin later in 2Q
  • Periphery spreads are likely to grind tighter and scarcity in bunds (new yield lows expected) favors the lower-for- longer theme in periphery too, though risk assets will have to first navigate Brexit risk and July’s Greek resolution
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Harvinder Sian (Citigroup Inc)

To de-activate this alert, click here

UUID: 7947283

HALISTER: Fnac Said to Be Buying Darty Shares on Market Amid Bidding War

Fnac Said to Be Buying Darty Shares on Market Amid Bidding War

(Bloomberg) -- Fnac, which is in a bidding war for Darty with Steinhoff, is buying up shares on the market in the U.K. electronics retailer, according two people familiar with the trades.
  • Two blocks in Darty totaling 19.4m traded today at 145p/share, the same price at which the improved Fnac offer was announced earlier
    • The volume is equivalent to ~4.7% of Darty free float or ~3.7% of shares outstanding
    • Peel Hunt, which is the broker to Fnac, has traded ~19.6m shares in Darty, has crossed 9.6m shares, according to three people familiar with the trades
  • The U.K. takeover code states that a bidder must increase its offer for a takeover target if it acquires shares in the target at a price higher than value of the offer
  • Note that Steinhoff’s Conforama has raised its bid for Darty to 150p/share after Fnac raised its to 145p/share topping an earlier increased offer from Conforama at 138p/share
    • Steinhoff unit Conforama has bought 103.2m Darty shares, or 19.5%, from Majedie, Schroder, Standard Life, UBS Asset Management at 138p/share
    • Darty has said it will carefully consider Steinhoff and Fnac offers
  • Darty trades at a 2.3% premium to highest bid, currently up 16%, largest one day gain since Sep. 30 on 19.3x 3-month daily average
    • Exane earlier suggested that based on potential synergies Steinhoff could afford to pay as much as 160p/shares
  • Peel Hunt is the broker to Fnac, Citigroup, HSBC are the corporate brokers to Conforama
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
DRTY LN (Darty Plc)
FNAC FP (Groupe Fnac SA)
SNH GR (Steinhoff International Holdings NV)

To de-activate this alert, click here

UUID: 7947283

HALISTER1: *ISRAEL OUTLOOK REVISED TO POSITIVE FROM STABLE BY FITCH

*ISRAEL OUTLOOK REVISED TO POSITIVE FROM STABLE BY FITCH

Alert: HALISTER1
Source: BN (Bloomberg News)

Tickers
3343943Z IT (State of Israel)

People
Edward Parker (Fitch Ratings Ltd)
Leslie Tan (Fitch Group Inc)
Peter Fitzpatrick (Fitch Ratings Ltd)
Toby Iles (Fitch Group Inc)
Tony Stringer (Fitch Ratings Ltd)

To de-activate this alert, click here
To modify this alert, click here

UUID: 7947283

(2) *FNAC OFFER FOR DARTY AT 153P/SHR CASH; PARTIAL SHR ALTERNATIVE

*FNAC OFFER FOR DARTY AT 153P/SHR CASH; PARTIAL SHR ALTERNATIVE

Alerts: HALISTER, HALISTER1
Source: BN (Bloomberg News)

Tickers
DRTY LN (Darty Plc)
FNAC FP (Groupe Fnac SA)
SNH GR (Steinhoff International Holdings NV)

To de-activate the "HALISTER" alert, click here
To modify this alert, click here

To de-activate the "HALISTER1" alert, click here
To modify this alert, click here

UUID: 7947283

HALISTER1: ECB Decision Due in 5 Mins; Draghi Speak in Frankfurt Later

ECB Decision Due in 5 Mins; Draghi Speak in Frankfurt Later

(Bloomberg) -- Economists expect all three main rates to remain unchanged at the 1:45pm CET decision; ECB President Mario Draghi will answer questions from journalists 45 mins later.
  • Draghi holds a press conference at 2:30pm CET; to watch a live video feed, see LIVE
  • Follow TOPLive for our real-time blog on the ECB rate decision and Draghi’s speech here TLIV 56F41B4818A0000D
  • ECB main refinancing rate est. 0.0% vs prev 0.00%
  • ECB deposit facility rate est. -0.4% vs prev -0.4%
  • ECB marginal lending facility est. 0.25% vs prev 0.25%
  • For scrolling ECB news headlines: FIFW NI ECB BBG
  • NOTE: Draghi Can Argue Glass Is Half Full as ECB Pumps Up Stimulus
  • NOTE: INSIDE G-10: Euro on the Defensive Ahead of ECB; USD Mixed
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2539Z GR (European Central Bank)

People
Mario Draghi (European Central Bank)

To de-activate this alert, click here

UUID: 7947283

HALISTER: GM Posts 1Q EPS $1.26 Beats Est. 99c; Revenue Tops Est.

GM Posts 1Q EPS $1.26 Beats Est. 99c; Revenue Tops Est.

(Bloomberg) -- GM 1Q rev. $37.3b, est. $35.6b.
  • 1Q automotive net operating cash flow loss $700m
  • 1Q adj. automotive free cash flow loss $1.5b
  • 1Q China equity income $500m
  • 1Q Europe adj. EBIT break-even
  • 1Q North American adj. EBIT $2.3b
See earlier earnings preview Statement: {NSN O5ZEN1BE07IA }
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
GM US (General Motors Co)

To de-activate this alert, click here

UUID: 7947283