Halister News

--BEN SCENT

(Bloomberg) -- Following are forecasts for today’s economic releases as compiled by Bloomberg News.

• Housing Starts 1160k; range 1075k to 1256k (69 estimates)
• Starts 6.2% m/m; range -1.6% to 15% (69 estimates)
• Build Permits 1201k; range 1150k to 1250k (47 estimates)
• Permits 2.8% m/m; range -1.5% to 7% (47 estimates)
• In May, total starts fell 5.5 percent, the third consecutive drop, amid declines in single-family and multi-family projects
• "With growth in multifamily construction slowing amid falling demand and record supply, home construction will increasingly have to rely on single-family units, permits for which are key to watch in the June report": Bloomberg Intelligence

To contact the reporters on this story: Alex Tanzi in Washington at atanzi@bloomberg.net; Vincent Del Giudice in Denver at vdelgiudice@bloomberg.net To contact the editors responsible for this story: Alex Tanzi at atanzi@bloomberg.net Kristy Scheuble

--BENJAMIN HARVEY

(Bloomberg) -- A potentially successful renegotiation of Braskem’s shareholders’ agreement with attractive terms could open the door for a potential re-rating of the stock, says Santander in a report signed by Christian Audi and Gustavo Allevato.

• Negotiations could involve a new naphtha supply contract, improvements in corporate governance; that, if combined with other potentially positive factors, could open the door for value to be potentially unlocked: Santander
  • Potential narrowing of the 41% discount to global peers closer to the 10-20% level would imply Braskem’s equity value increasing by approximately 60-90%
• Itau BBA says in a report signed by Ciro Matuo that negotiations mark an important step for Petrobras toward the sale of its minority stake in Braskem
  • New agreement might grant more limited power to a new minority shareholder than is currently granted to Petrobras, which has a negative impact on the price of the shares to be sold
  • Eventual signing of a longer- term naphtha-supply contract between Braskem and Petrobras could benefit both cos.
• NOTE from July 18: Petrobras in talks with Odebrecht for new Braskem shareholder deal

To contact the reporter on this story: Ana Carolina Siedschlag in São Paulo at asiedschlag@bloomberg.net To contact the editors responsible for this story: Daniela Milanese at dmilanese@bloomberg.net Giulia Camillo

(Bloomberg) -- Generic bund futures contract may keep nudging higher after momentum tools trigger a new ‘buy’ signal this week, Bloomberg technical analyst Sejul Gokal writes.

• See chart here; RX1 +14 ticks to 161.75
• Next resistance at 162.27-28 (38.2% Fibonacci, 21-DMA) and then 162.60-78 (June 30 high, 28 low)
  • 13-exponential MA now points up and was broken Tuesday at close
  • MACD histogram flips to positive, first time since May 18, to generate a bullish signal
• 9-day RSI breaks down-trendline from mid-June, to also help rationalize lingering topside risks
• Only a move above 163.50 would question the post-‘Sintra’ shift in trend narrative, to bearish
  • A close above here would mean bulls were able to reclaim all three major averages and recoup 62% of selloff from June 26

• NOTE: Sejul Gokal is a FICC technical strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice