HALISTER1: Korea Central Bank Decision to Support Curve Steepener: Deutsche

Korea Central Bank Decision to Support Curve Steepener: Deutsche

(Bloomberg) -- Maintain KRW interest-rate swap steepener after BOK’s decision to hold rates amid improving economic sentiment and activities, Kiyong Seong, strategist at Deutsche Bank writes in note received today.
  • Recommends investors to pay KRW IRS 2Y/5Y (target +25bp) and 2Y/10Y (target +40bp)
  • Change in MPC statement to “support the recovery” from “sustain the recovery” may imply BOK’s conditional readiness to cut the policy rate
  • Focus now on government and politicians, and discussion about fiscal stimulus which could start within a couple of months
  • Foreigners’ relatively heavier net long position in the 10- year KTB futures support medium-term steepening bias
  • BOK will be joined by four new members, who are more dovish than the outgoing ones
  • Continues to expect 25bps rate cut as soon as May
  • NOTE: 2-yr IRS down 2 bps to 1.4425%; 5-yr contracts down 2 bps to 1.4950%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Kiyong Seong (Deutsche Bank AG)

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HALISTER1: INDIA RATINGS: Jindal India, Zicom Cut; Mahindra CIE Raised

INDIA RATINGS: Jindal India, Zicom Cut; Mahindra CIE Raised

(Bloomberg) -- Here’s a roundup of debt-rating changes of Indian cos. To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery. DOWNGRADES
  • Ahinsha Builders
    • LT bank facilities cut to B+ from BB- at Care
    • Cites execution risk associated with its ongoing residential real estate project, low bookings
  • Amul Industries
    • LT bank facilities cut to BB- from BB at Care
    • Cites decline in scale of operations due to demand slowdown in automobile industry
  • Anchor Health
    • LT bank facilities cut to BBB- from BBB at Care
    • Cites losses at operating level, negative cash accruals
  • Jindal India Thermal Power
    • LT bank facilities cut to D from BB+ at Care
    • Cites instances of delays in debt servicing
  • NKG Infrastructure
    • LT loan facilities cut to BBB+ from A- at Crisil
    • Expects performance to remain under pressure over the medium term
  • Zicom Electronic
    • LT bank facilities cut to BBB+ from A- at Care
    • Cites significant adverse effect on its Middle East business due to decline in crude oil prices
UPGRADES
  • Acme Solar Energy
    • LT bank facilities raised to A- from BBB+ at Care
    • Cites healthy operational performance
  • Badve Engineering
    • Term loan raised to A from A- at Care
    • Cites ability of the co. to achieve robust revenue growth
  • Baramati Agro
    • LT bank facilities raised to A- from BBB+ at Care
    • Cites improvement in profitability margins
  • Bodal Chemicals
    • LT bank facilities raised to A- from BBB+ at Care
    • Cites significant improvement in leverage
  • Dharani Sugars
    • LT bank facilities raised to B- from D at Care
    • Cites restructuring of debt
  • French Motor Car
    • LT loan facilities raised to BB from BB- at Crisil
    • Cites improvement in scale of operations
  • Maharashtra Border Check Post
    • LT bank facilities raised to A- from BBB at Care
    • Cites substantial growth in avg daily service fee
  • Mahindra CIE Automotive
    • LT bank facilities raised to A+ from BBB at Care
    • Cites improved operational, financial performance
  • Nayak Infrastructure
    • LT loan facilities raised to BBB- from BB at Crisil
    • Cites improvement in liquidity profile
  • SAMHI Hotels
    • LT bank facilities raised to BBB+ from BBB at Care
    • Cites equity infusion by Goldman Sachs in Dec. 2015, further strengthening the co’s solvency, liquidity profile
  • Savla Chemicals
    • LT loan facilities raised to BBB from BBB- at Crisil
    • Cites increase in scale of operations, profitability margins
  • Shirdi Sai Electricals
    • LT loan facilities raised to A- from BBB+ at Crisil
    • Cites improvement in scale of operations, profitability margins
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
0932333D IN (Acme Solar Energy Pvt Ltd)
6597996Z IN (Anchor Health & Beauty Care Pvt Ltd)
9156339Z IN (Badve Engineering Ltd)
8156830Z IN (Baramati Agro Ltd)
BODL IN (Bodal Chemicals Ltd)

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UUID: 7947283

HALISTER: United Air Said to Name Milton Chairman as Proxy Dispute Settled

United Air Said to Name Milton Chairman as Proxy Dispute Settled

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
UAL US (United Continental Holdings Inc)
AC CN (Air Canada)

People
Barney Harford (Orbitz Worldwide Inc)
Bradley Gerstner (Altimeter Capital Management LLC)
Gordon Bethune
Henry Meyer (United Airlines Inc)
James Whitehurst (Red Hat Inc)

Topics
Management Changes
Who's News - People

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HALISTER1: INSIDE ASIA: Ringgit Gains as Weaker Dollar Fuels EM Demand

INSIDE ASIA: Ringgit Gains as Weaker Dollar Fuels EM Demand

(Bloomberg) -- Malaysia’s ringgit leads gains among most Asian currencies on improving risk sentiment as regional equities advance for a second straight day.
  • Combination of dovish Fed, improving China growth outlook is boosting sentiment and strength in ringgit: Mirza Baig, head of Asia Pacific foreign-exchange & interest-rate strategy at BNP Paribas
  • Yen is set to snap two-day loss after advancing, with the nation reporting its biggest trade surplus since Oct. 2010
    • Stronger yen cuts cost of energy and other imports, leaving trade surplus of 755b yen; shipments fell 6.8% on year and imports down 14.9%
    • Yield on Japan’s 40-year debt reaching record low on BOJ purchases and demand from investors for positive returns
    • Central bank Governor Kuroda repeats today that BOJ won’t hesitate to take additional easing measures if needed
  • China raises yuan fixing to strongest level since Dec. 15 amid dollar weakness
    • Goldman raised GDP forecast for China to 6.6%, from 6.4%, with the expectation that policy support will be less aggressive
    • PBOC may be signaling less appetite for adding monetary stimulus, with research bureau chief economist Ma Jun saying late Tuesday that future policy operations will also pay attention to heading off risks, esp on over- expansion of corp. leverage
  • Kiwi declines versus dollar for the first time since April 14; New Zealand Finance Minister English is stepping up his oversight of the central bank, documents obtained under the Official Information Act show
  • Aussie weakens; Australia’s leading index slipped 0.12% in March from month earlier when it declined revised 0.23%
  • Won rises to strongest level since November; South Korea’s producer prices fell 3.3% in March from year earlier following 3.4% decline prior month
    • Nomura recommends adding to Korea rates steepener exposure
  • U.S. Treasuries advance, with yield on 10-year bonds falling 2 bps to 1.771%; data today may show existing home sales in the world’s largest economy increased 3.9% in March on month after 7.1% decline in February: Bloomberg survey
  • Ringgit strengthens for second day; Malaysia’s inflation probably slowed to 3.4% in March on year from 4.2% in February, according to Bloomberg survey before data today
    • Former premier Mahathir, two others applied to high court to freeze assets belonging to Prime Minister Najib, Sun newspaper reports
  • Taiwan dollar rises; island’s export orders may have decreased 8.0% in March from prior year after 7.4% slide previous month, according to separate Bloomberg survey before today’s data
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Mirza Baig (Bnp Paribas)

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UUID: 7947283

HALISTER: Blankfein’s Decade Ending With a Thud on a Humbled Wall Street

Blankfein’s Decade Ending With a Thud on a Humbled Wall Street

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
GS US (Goldman Sachs Group Inc/The)
BAC US (Bank of America Corp)
C US (Citigroup Inc)
JPM US (JPMorgan Chase & Co)
MS US (Morgan Stanley)

People
Lloyd Blankfein (Goldman Sachs Group Inc/The)
Ashok Varadhan (Goldman Sachs Group Inc/The)
Bernard Sanders (United States Senate)
David Solomon (Goldman Sachs Group Inc/The)
Gary Cohn (Goldman Sachs Group Inc/The)

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HALISTER1: BANK INDONESIA PREVIEW: USD/IDR NDFs Eye Test of 13,000 Level

BANK INDONESIA PREVIEW: USD/IDR NDFs Eye Test of 13,000 Level

(Bloomberg) -- USD/IDR 1-mo. NDFs may test support at psychological 13,000 level in near term if BI leaves its reference rate unchanged, as mixed U.S. data signal no Fed rate hike for now, Bloomberg strategist David Finnerty writes.
  • BI will keep its reference rate on hold at 6.75%, according to 23 of 26 economists in a Bloomberg survey; three predict a 25-bps rate cut; decision due tomorrow
  • Indonesia’s core CPI rose at a slower pace in March even as headline inflation edged higher, suggesting central bank could adopt a wait-and see stance
  • After lowering rates in March, BI said it will become more careful in easing policy and strengthen operations framework and term structure of monetary policy rates, indicating central bank may stand pat at April 21 meeting as it monitors the effect of three rate cuts
  • NOTE: BI said it will switch to 7-day reverse repo rate as its main policy instrument, effective Aug. 19, to help spur lending and support growth; even though BI cut its key rate by total of 75 bps this year, officials have noted that lending rates didn’t fall by same magnitude
  • USD/IDR 1-mo. NDFs now up 0.1% to 13,165, still consolidating below resistance at 50-DMA of 13,290
  • 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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