Halister News

(Bloomberg) -- Offering of up to 6 parts expected to price today.

• IPTs:
  • 3Y Fxd (05/11/2020): +45a
  • 3Y FRN (05/11/2020): L equiv.
  • 5Y Fxd (05/11/2022): +60a
  • 5Y FRN (05/11/2022): L equiv.
  • 7Y Fxd (05/11/2024): +85-90
  • 10Y Fxd (05/11/2027): +100-105
• Issuer: Apple Inc. (AAPL)
• Ratings: Aa1/AA+
• SEC registered sr unsecured
• UOP: GCP
• Par Call: 1-month on 5Y, 2-months 7Y, 3-months on 10Y
• Bookrunners: GS, JPM, WFS
• Settlement: 05/11/2017
• Denoms: 2k x 1k
• NOTE: Apple reported 2Q earnings May 2; authorized $50b boost to capital return program
• Information from person familiar with the matter, who is not authorized to speak publicly and asked not to be identified

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

• Productivity -0.1% q/q; range -0.8% to 0.8% (55 estimates)
• Unit Labor Costs 2.7% q/q; range 0.5% to 3.7% (47 estimates)
• Trade Balance -44.5b; range -47.8b to -43.5b (57 estimates)
• • No major revisions to 1Q GDP are expected, based on the March trade report -- Bloomberg Intelligence
• Initial Claims 248k; range 235k to 255k (48 estimates)
• Cont. Claims 1990k; range 1990k to 2010k (5 estimates)
• • The 23k increase in jobless claims seen in the previous two weeks is typical around the Easter/spring break period and usually fully reverses within one month -- Bloomberg Intelligence
• Factory Orders 0.4% m/m; range -0.3% to 1.5% (51 estimates)
• Durables 0.7% m/m; range -1% to 1% (3 estimates)

Spain names 7 former HSBC bankers as suspects in money laundering case on.ft.com/2pBIO7Z
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(Bloomberg) -- If Treasury intends to reintroduce a 20Y bond, the closest comparison may be 2005-2006, when it revived the 30Y security, JPMorgan strategists led by Jay Barry said in May 3 note.

• Treasury discussed the 30Y reintroduction at May 2005 refunding, then auctioned the security in February 2006
• If Treasury decides to move forward with a 20Y, it may not occur before February or May 2018
• TBAC’s recommendation for a 20Y “makes intuitive sense and is easier to implement,” as Treasury has auctioned 20Y securities in the past, before discontinuing the product in 1986
• There’s already “robust hedging alternatives” for primary dealers and end users currently exist in the sector
  • CTD bond for US futures is 5% May-2037s, an original- issue 30-year with 20yrs to maturity; also, 20Y swaps are liquid
• Discussions around ultra-long Treasury securities will continue, may see further analysis at August refunding, though the probability of an “ultimate introduction is low”

(Bloomberg) -- Currencies of Russia and South Africa weaken with local bonds after the Federal Reserve affirmed its plan to raise borrowing costs twice more this year.

• MSCI’s EM indexes of stocks and currencies retreat 0.3% each
• Yield premium on developing sovereign bonds over U.S. Treasuries decreases 2bps to 295, lowest on closing basis since 2014: JPMorgan Chase indexes

EASTERN EUROPE:

• RUB declines 0.7% to 57.7650/USD, lowest level in 6 weeks; local bonds due in 2027 fall for 2nd day, yield adds 2bp to 7.62%
  • Finance Ministry to reduce FX purchases starting next week
  • Citi recommends lower-rated Russian corporate bonds for carry
• Turkey’s lira retreats 0.4%; yield on local bonds due in 2026 climb 7bps to 10.23%; Borsa Istanbul 100 Index falls 0.2%
  • Turkcell heads for biggest drop in 2 years after Telia sold a 7% stake in the company at a discount to market price
  • SocGen recommends Turkey Steepener

ASIA:

• S. Korean won weakens 0.2%; Kospi Index climbs 1% to record
  • Current account surplus shrank in March
  • NOTE: Country gears up for presidential election May 9
• Filipino peso advances 0.2%; Philippine Stock Exchange PSEi Index gains 1% to close at highest level in more than 7 months
  • President Rodrigo Duterte’s plan to raise taxes to fund infrastructure projects passed by parliamentary committee, Inquirer reports, but may face delays

AFRICA:

• ZAR declines 0.7% to lowest level in 3 weeks; local bonds due in 2026 set to end 3-day winning streak, yield rises 6bps to 8.72%
  • Government minister seeks land seizure without payment
  • Central Bank Governor Lesetja Kganyago says ending rate hikes doesn’t mean start of cuts
  • Morgan Stanley recommends selling rand
  • READ: Standard Chartered Sees Year of Recovery for African Economy

MIDDLE EAST:

• Main stock index in Abu Dhabi advances 0.8%, bucking declines across rest of Gulf markets
  • Arabtec gains 1.6%, rebounding from 4-day slump of 9.2% after posting 1st quarterly profit since 2014
  • Oil, region’s biggest export, declines 0.6% to near 5- month low

ANALYSIS:

• Russia Takes After Fed as Monetary Policy Veers Off-Script Again
• Cheapest Asian Stocks on Historical Basis Are in Korea: Chart

(Bloomberg) -- Spanish judge names 7 HSBC executives that worked at the bank in 2006-2007 as official suspects in probe linked to Falciani case, according to emailed statement.

• Managers under investigation over allegations of money laundering, criminal organization
• Judge names Peter Widmer, Christopher Meares, Clive Bannister, Beatriz Sanchez, Pierre-Alain Sigg, Maria Sanchez, Didier Peclard as being under investigation
• A spokeswoman for HSBC in Madrid didn’t have any immediate comment on the judge’s decision
• EARLIER: Santander, BNP Managers Named as Suspects in Falciani Probe Link