HALISTER1: MORE: Philippine BSP Seeks Higher Penalties for Erring Banks

MORE: Philippine BSP Seeks Higher Penalties for Erring Banks

(Bloomberg) -- Bangko Sentral ng Pilipinas to provide specific recommendations on higher range of penalties to be included in its charter and in law against money laundering, Deputy Governor Nestor Espenilla tells Senate hearing in Manila.
  • Central bank can impose 30,000 pesos per day or per transaction under current charter; disciplinary actions can also be imposed on banks and employees
  • “The economy has grown. The transactions have grown. I think there should be flexibility there,” Espenilla says
  • Significant penalties on banks should be established if their protocol systems are not proper to prevent transactions involving dirty money, Senator Ralph Recto says
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BSNZ PM (Bangko Sentral ng Pilipinas)

People
Nestor Espenilla (Bangko Sentral ng Pilipinas)

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HALISTER: Wells Fargo Rises to Top Oil Bank With Flawed Bets on Collateral

Wells Fargo Rises to Top Oil Bank With Flawed Bets on Collateral

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
WFC US (Wells Fargo & Co)

People
Bernard Clark (Haynes & Boone LLP)
Jessica Ong (Wells Fargo & Co)
John Shrewsberry (Wells Fargo & Co)
Julie Solar (Fitch Ratings Ltd)
Michael Johnson (Wells Fargo & Co)

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HALISTER1: INDIA RATINGS: Pragati Marine, Puranik Raised; Sarthav Cut

INDIA RATINGS: Pragati Marine, Puranik Raised; Sarthav Cut

(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
  • Interjewel Designs
    • Long-term bank facilities cut to BB+ from BBB- at Care
    • Cites y/y deterioration in financial performance marked by sharp decline in oper. income and profit margins
  • Hi-Tech Audio Systems
    • Long-term rating cut to BBB from BBB+ at Crisil
    • Cites liquidity being constrained by dividend payout and expected stretch in working-capital requirement
  • Sarthav Infrastructure
    • Long-term rating cut to D from BB- at Crisil
    • Cites delays in debt servicing due to weak liquidity driven by poor offtake of real-estate projects
UPGRADES
  • Pragati Marine Services
    • Long-term rating raised to B from D at Crisil
    • Cites track record in repayment of term debt obligations due to improved liquidity
  • Puranik Builders
    • Long-term bank facilities raised to BBB+ from BBB at Care
    • Cites sales momentum, improvement in sales realization in projects
  • Seven Islands Shipping
    • Long-term rating raised to A- from BBB+ at Crisil
    • Cites improvement in business-risk profile led by strong revenue growth, profitability, customer relations
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
BRCM IN (Balrampur Chini Mills Ltd)
0896996D IN (Broadcast Engineering Consultants India Ltd)
GRMO IN (GRM Overseas Ltd)
0489204D IN (Jaina Mobile India Pvt Ltd)
KHT IN (Khaitan Electricals Ltd)

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HALISTER1: Japan Inflation-Linked Bond Auction Draws Higher Bid-Cover Ratio

Japan Inflation-Linked Bond Auction Draws Higher Bid-Cover Ratio

(Bloomberg) -- Japanese Ministry of Finance’s 400b yen ($3.7b) auction of 10-year inflation-linked govt bonds draws bid-to-cover ratio of 2.84, highest since Jan. 2015 sale and up from 2.47 at last offering on Jan. 13.
  • Issue price was 104.90, highest since Nov. offering and compares with 104.40 at Jan. sale; median est. 104.70 in Bloomberg survey of 11 primary dealers
  • Inflation-linked JGBs are likely to be supported from a supply-demand perspective, Deutsche Bank writes in note today before auction’s outcome; sees scope for large improvement in supply-demand situation of these JGBs for current fiscal year that started in April
  • Issuance amount of inflation-linked JGBs has been reduced to 400b yen in April from 500b yen in Jan.: MOF data; finance ministry said last month that it will buy back approximately 20b yen each of these securities in April and June
  • A bond market measure of inflation expectations over next 10-years known as breakeven rate down at 0.358% vs 0.369% on April 11
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: USD/SGD May Range Widely Regardless of MAS Decision: Analysis

USD/SGD May Range Widely Regardless of MAS Decision: Analysis

(Bloomberg) -- USD/SGD’s trading range on April 14 policy day may be between 90 and 159 pips, even if Singapore’s central bank maintains its stance, Bloomberg strategist Mark Cranfield writes.
  • Historical patterns suggest that trading ranges tended to be relatively wide on policy days which followed a central bank decision to act in the prior meeting
  • Twelve of 18 economists surveyed by Bloomberg forecast MAS will maintain the current stance after easing policy in October by reducing “slightly” the pace of SGD appreciation vs its trading partners; click here for survey
  • USD/SGD traded in a 159-pip range on April 14, 2015 when MAS held policy steady after an unexpected Jan. decision to ease in between scheduled meetings
  • USD/SGD moved 90 pips on October 12, 2012 policy day following a tightening earlier in April
    • Subsequent intraday ranges on policy days narrowed to 31 and 43 pips in 2013 when monetary stance was kept unchanged for a second and third successive time
  • SGD is trading around 0.4% above the midpoint of its NEER band after reaching 1% above in mid-March and 1% below in February, suggesting market positioning hasn’t been neutral for several weeks
  • USD/SGD now 1.3453 vs 1.3786 on October 14 when MAS last held its semi-annual policy meeting
    • 1st resistance at 1.3475, 5-DMA; 2nd resistance at 1.3495, 10-DMA; 1st support at 1.3415, March 31 low; 2nd support at 1.3354, 10-month low
  • NOTE: Oct. 14 - Singapore Eases Policy as Economy Narrowly Avoids Recession
  • NOTE: Mark Cranfield is an FX strategist who writes for First Word. 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: INSIDE ASIA: Yen Snaps Seven-Day Rally Amid Broader Asian Gains

INSIDE ASIA: Yen Snaps Seven-Day Rally Amid Broader Asian Gains

(Bloomberg) -- Yen heads toward a first decline in seven days as technical indicators suggest USD/JPY is oversold, while the yuan falls ahead of GDP data this week.
  • USD/JPY may approach 109 today, with rising implied volatility and declining riskies suggesting market is eyeing downside, according to Atsushi Hirano, head of FX sales Japan at RBS
    • Finance Minister Aso reiterates that Japan will take action as needed if there are one-sided FX moves; yen falls 0.2% to 108.15 to the dollar
    • Bank loan growth slows to 2.0% from year earlier in March, from 2.2% in prior month, following BOJ’s introduction of negative interest rates
  • Yuan falls both onshore and offshore, signaling the end of a three-day rally after Premier Li Keqiang reiterated Monday evening that pressure on the economy is “relatively large.”
    • U.S. Treasuries decline, with yield on 10-year bonds up 1 bp to 1.739% in Asian trading; data tomorrow will probably show retail sales advance rose 0.1% from previous month in March, first increase in three months, according to Bloomberg survey of economists
  • Other Asian currencies advanced, led by Aussie and won
    • Won gains for second day; Import price index dropped 7.7% from year earlier in March after 7.4% decline in February; export price index fell 4.5%, biggest decline in three months
    • Aussie rises for third day against dollar; Australia’s NAB business conditions at 12 in March, highest since October 2014
    • Rupee 1-month forwards snap two-day gain; data today will probably show India’s CPI rose 5.0% from year earlier in March, lowest since October while industrial production gained 0.6% in February, first increase in four months: Bloomberg surveys
    • Peso and ringgit also gain
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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