HALISTER1: Wait for Clearer China FX Policies Before Buying Bonds: SEB

Wait for Clearer China FX Policies Before Buying Bonds: SEB

(Bloomberg) -- Key developments in China need to be clarified before real-money investors should buy Chinese bonds following last week’s announcement to open the market, Sean Yokota, head of Asian strategy at SEB writes in note today
  • Announcement sounds like China is on path to opening capital account allowing more money to come in, but at the same time, not allowing money to leave
  • More recognizable pattern in foreign exchange policy is needed; China has moved back and forth in FX policy over last 6 mos. making policy direction uncertain
  • PBOC has taken more control of currency movement, after earlier allowing yuan to trade more freely
  • Announcement was not clear on what kind of interest rate and FX products foreign institutional investors have access to onshore
  • NOTE: PBOC removes quotas for overseas investors in interbank bond market
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Sean Yokota (Skandinaviska Enskilda Banken AB)

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UUID: 7947283

HALISTER: Barclays Africa Shares Plummet as U.K. Parent Said to Mull Sale

Barclays Africa Shares Plummet as U.K. Parent Said to Mull Sale

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
BARC LN (Barclays PLC)
BGA SJ (Barclays Africa Group Ltd)

People
James Staley (Barclays PLC)
Maria Ramos (Barclays Africa Group Ltd)
Robert Diamond (Atlas Merchant Capital LLC)

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UUID: 7947283

HALISTER1: EU CREDIT DAILY: Weak Bias; Nissan, Morrison, Barclays, Qantas

EU CREDIT DAILY: Weak Bias; Nissan, Morrison, Barclays, Qantas

(To subscribe to EU Credit Daily, click here and set alert via ‘"Display & Edit’’) By Simon Ballard (Bloomberg) -- European IG cash spreads could see fading of tightening seen on Friday if price action in Asia overnight is anything to go by, Bloomberg strategist Simon Ballard writes.
  • G-20 meeting this weekend has done little to buoy risk appetite as no concerted monetary or fiscal initiative agreed to fuel global economic growth
  • Recent weakness in Bloomberg EUR HY cash index serves as a reminder that myriad risks remain
    • Investors cognizant that recent spread widening doesn’t necessarily warrant a blanket bid for corporate credit across the quality spectrum
  • Geopolitical risk remains elevated; Syrian cease-fire short- lived. Merkel challenged on refugee crisis
  • Risk Appetite Model highlights decline in spread dispersion, but steady volatility
  • CDX IG currently +0.9bps at 110.30 in overnight session; iTraxx Asia Ex Japan IG is currently -0.4bps at 158.31
NEWS
  • Corporate News
  • Nintendo Falls After Halving Profit Goal on Weak 3DS Sales
  • Slater & Gordon Posts $683 Million Loss on U.K. Unit Writedown
  • Nissan Surges Most Since 2009 on Record $3.5 Billion Buyback
  • BMW’s Stalled Growth Engine Opens Door to Luxury-Car Top Spot
  • Morrison to Enter Pact W/ Amazon, Share Capacity in Ocado CFC
  • Financial News
  • Barclays Africa Drops Most in 7 Weeks as Parent Mulls Sale
  • Bank Leumi Posts Fourth-Quarter Profit After Year-Earlier Loss
  • Saudi Banks Loans-Deposits Ratio Worsens in Jan. as Loans Rise
  • Rating News
  • Qantas Returns From Junk-Bond Purgatory With Moody’s Upgrade
  • Woolworths Ltd Credit Profile Expected to Improve From 2017: S&P
  • Brazilian Companies See Credit Downgrades Surge to a Record High
  • Other News
  • Fed Dots Don’t Connect for Bond Traders Scorning Rate-Hike Path
  • Kuroda Negative Rate Bazooka Fizzles on Overnight Lending Freeze
  • Oil Pares Fourth Monthly Decline as U.S. Explorers Idle Rigs
ANALYST VIEWS
  • We close out Feb. with returns on the up for all asset classes and out of the big three euro government bonds come top, with corporate bonds in second place and equities still languishing: creditmarketdaily.com
NEW ISSUES
  • Lower Saxony EU250m 0.375% 1/2023 Tap MS -6
  • RBC EU1.5b 5Y Covered MS +21
  • Slovenia EU125m 3.125% 8/2045 Tap MS +175
  • UniCredit EU1b 7Y MS +190
  • European IG credit pipeline here and HY credit pipeline here
  • Issuers exposed to S-T rollover and interest-rate reset risk here
  • NOTE: Simon Ballard is a credit strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.
  • Please note that the EU Credit Daily will not be published tomorrow and will resume Wednesday
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
QAN AU (Qantas Airways Ltd)
7201 JP (Nissan Motor Co Ltd)

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UUID: 7947283

HALISTER: Gameloft Board Rejects Vivendi’s Takeover Offer as Too Low

Gameloft Board Rejects Vivendi’s Takeover Offer as Too Low

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
VIV FP (Vivendi SA)
GFT FP (GameLoft SE)
BOL FP (Bollore SA)

People
Bryan Garnier Am (Bryan Garnier & Co Ltd)
Vincent Bollore (Bollore SA)
Richard Beaudoux (Bryan Garnier & Co Ltd)
Yves Guillemot (UBISOFT Entertainment)

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UUID: 7947283

HALISTER: Morrison to Enter Pact W/ Amazon, Share Capacity in Ocado CFC

Morrison to Enter Pact W/ Amazon, Share Capacity in Ocado CFC

(Bloomberg) -- Morrison to provide a wholesale supply service to Amazon. to make hundreds of products available to Amazon Prime Now and Amazon Pantry customers.
  • Morrison in discussions with Ocado to grow Morrisons.com and an agreement in principle has been reached; Morrison to take space in Ocado’s new Customer Fulfilment Center in Erith
  • Ocado to deliver a store pick solution for Morrison; would enable Morrisons.com, working with Ocado, to sell to customers all over Great Britain
  • Amended agreement with Ocado is subject to detailed terms being agreed and will only proceed if it enables Morrison to achieve profitable growth online; no certainty that an agreement will be concluded
Link to Statement:Link
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
AMZN US (Amazon.com Inc)
OCDO LN (Ocado Group PLC)
MRW LN (Wm Morrison Supermarkets PLC)

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UUID: 7947283