Halister News

(Bloomberg) -- Detention of publicist Tal Zilberstein also extended until Aug. 17, police spokeswoman Luba Samri says in text message.

• Bezeq Acting Chairman David Granot and two others detained Monday were released: Globes
• NOTE: Steinmetz Questioned in Israel Money-Laundering Case: Channel 2

To contact the reporter on this story: Michael S. Arnold in Tel Aviv at marnold48@bloomberg.net To contact the editors responsible for this story: Riad Hamade at rhamade@bloomberg.net Yaacov Benmeleh

(Bloomberg) -- Country is in process of setting up an inter-departmental committee on anti-money laundering and combating the financing of terrorism, Finance Minister Malusi Gigaba says in written reply to question by lawmaker, received by email.

• National Treasury director-general will chair the committee, which will have representatives from the Treasury, depts of justice, home affairs as well as State Security Agency, South African Police Service, central bank, National Prosecuting Authority, Financial Services Board and Financial Intelligence Centre
• Committee will coordinate nation’s response to Financial Action Task Force, a Paris-based anti-money laundering watchdog
• It will also prepare for the national risk assessment to facilitate compliance with international obligations
• More details on the committee to be made available after public consultations; will be published with final set of provisions of Financial Intelligence Centre Amendment Act on Oct. 2

To contact the reporter on this story: Ana Monteiro in Johannesburg at amonteiro4@bloomberg.net

(Bloomberg) -- Bund downside increases as risk sentiment improves; however, futures may consolidate in higher range in the very near term until a lasting de-escalation of geopolitical risk is achieved.

• See bund skew chart here highlighting downside edging higher vs fading of low-delta calls
• KOSPI2 3-month ATM implied volatility closed at 13.9%, fading from 16% on Friday, and trades below the 5-year average of 14.1%, which highlights the lack of pricing of elevated North Korea fears
  • Political commentators may warn that this time may be different but markets only price a modest concern with tensions in the region having existed for decades and ultimately blow over; see more here
• U.S. and South Korean military exercises from August 21 may keep tensions elevated while seasonality and Tuesday’s public holidays in some European countries may keep bunds from fully unwinding geopolitical risks in the very near term
• Beyond geopolitical risks, there are limited fundamental catalysts for further rally and the second half of August will see focus on the return of supply in Sept. and the next major event risks (Jackson Hole on Aug. 24-26 and ECB meeting on Sept. 7)
• As highlighted on Friday, the U.S. swaptions market priced close to zero Korean risk premium; see more here
• NOTE: Tanvir Sandhu is an interest-rate and derivatives 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: Tanvir Sandhu in London at tsandhu17@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma

Economic Release Details: {INFUTOTY Index ECOD}

(Bloomberg) -- Not all bond investors will run for the hills should the European Central Bank announce a tapering timeline for its $2 trillion government-debt purchase program.

• David Hollis, a multi-asset money manager at Allianz Global Investors GmbH, is preparing for the day when the ECB says when and by how much it will scale back acquisitions so he can dive into German bunds, particularly the longer-dated securities
  • He and Jorge Garayo, an analyst at Societe Generale SA, said an ensuing selloff may create a good chance to buy
• ECB President Mario Draghi may give a clue as to his thinking at meetings with central bankers and economists in Jackson Hole, in the U.S., beginning Aug. 24. The ECB is set to meet Sept. 7
  • He is also scheduled to address a conference in Germany on Aug. 23
• To read full story, click here

To contact the reporter on this story: John Ainger in London at jainger@bloomberg.net

(Bloomberg) -- iTraxx Europe 5Y CDS spread may see today’s risk-relief tightening fade in favor of further widening toward 61bps, where price support meets medium-term average line; index broke last week above 58bps, which triggered a trend-reversal in credit risk, recalibrating chart bias toward near-term rise in cost for protection (see live chart here).

• iTraxx EUR 5Y generic CDS (CBIL source) at 56bps, contained inside last week’s price range of 52-59bps; CDS spread widened the most in 13 months last week
• Support directly offered by 55- DMA at 56.6bps

• Escalation of geopolitical tensions roiled credit markets with EUR 5Y CDS spread surpassing prior top at 57.61bps, which marked the high (lower top) in July; such break snapped the tightening trend characterized by lower tops
• Moreover, back-to-back close above 55-DMA resistance (~56bps) and conclusive entry into the ichimoku cloud region reinforces widening risks for days ahead
• Resistance at 58.66bps and then 59-60bps (daily cloud top readings for current week); break here exposes stronger resistance at 61.32-53bps (May lows, 38.2% Fibonacci, 100-DMA) and then 65.74-67.43bps (May 18 high, 200-DMA)
• Daily close below 52.92bps may assuage widening pressure and reposition market for narrowing trend resumption

To contact the reporter on this story: Sejul Gokal in London at sgokal1@bloomberg.net To contact the editors responsible for this story: Ven Ram at vram1@bloomberg.net Anil Varma