HALISTER1: Buying MYR via Short-Dated Debt Still Has Legs: Deutsche Bank

Buying MYR via Short-Dated Debt Still Has Legs: Deutsche Bank

(Bloomberg) -- Deutsche Bank says its March 29 tactical recommendation on long ringgit exposure through short-dated Malaysian govt securities “still has some juice left,” strategists Swapnil Kalbande and Sameer Goel wrote in note Tuesday.
  • Recent liberalization in dynamic hedging regulations have partly helped sentiment, paving the way for ringgit to finally catch-up with peers
  • MYR remains cheap and is still lagging behind downtrend in USD/Asians this year
  • BNM may welcome a slightly stronger MYR to manage inflation and indicate confidence
  • Offshore investor positioning is considerably lighter after the big sell-down
  • NOTE: USD/MYR is -0.3% to 4.3145, approaching 200-DMA level which has not been tested since last October

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Sameer Goel (Deutsche Bank AG)
Swapnil Kalbande (Deutsche Bank AG)

Topics
Emerging Mkts News, Analysis

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UUID: 7947283

HALISTER1: Bet on Steeper Australia Yield Curve on Supply Outlook, ANZ Says

Bet on Steeper Australia Yield Curve on Supply Outlook, ANZ Says

(Bloomberg) -- ANZ recommends buying Australia’s November 2028 govt note and simultaneously selling March 2047 bond at a spread of 86bps, senior rates strategist Martin Whetton writes in note Wednesday.
  • Targets spread of 125bps with stop-loss at 70bps
    • One of the key features of Australia’s 2017-18 budget that’s due for release next week will be a shift in the narrative of good debt and bad debt, with an eye to use debt to fund infrastructure: Whetton
    • Given this, risk to issuance will be to the upside and increasingly toward longer-tenor bonds
    • Office of Financial Management has already flagged its intention to issue into the long end of the curve via syndicated taps
    • RBA is looking to modestly lift its outlook for headline inflation, which would bolster a steepening trade
    • ANZ would expect to see U.S. Treasury increase issuance of 30 year bonds, which would steepen U.S. curve. Australia’s high correlation to U.S. would impact the ACGB curve

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Martin Whetton (Australia & New Zealand Banking Group Ltd)

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UUID: 7947283

HALISTER: Big Summer Shutdowns Loom for U.S. Auto Plants as Sales Sputter

Big Summer Shutdowns Loom for U.S. Auto Plants as Sales Sputter

Alert: HALISTER
Source: BN (Bloomberg News)

Tickers
F US (Ford Motor Co)
GM US (General Motors Co)
7203 JP (Toyota Motor Corp)

People
Charles Stevens (General Motors Co)
Donald Trump (United States of America)
Erich Merkle (Ford Motor Co)
Mark Wakefield (AlixPartners LLP)
Maryann Keller (Maryann Keller & Assoc)

Topics
BGOV Trans/Infrastructure

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UUID: 7947283

HALISTER1: Western Union CFO Expects Increased Spending on WU Way Program

Western Union CFO Expects Increased Spending on WU Way Program

(Bloomberg) -- The amount Western Union spends on its WU Way initiative will be “ramping up more heavily in the next three quarters,” CFO Rajesh Agrawal said in a phone interview.
  • NOTE: WU spent $14m on WU Way in 1Q17; spent $20m in 2016 and expects to spend about $100m in 2017
  • WU Way is focused on improving customer experience, Agrawal said; one example is giving customers digital tools so they understand the status of their transactions
  • Separately, Agrawal said a takeover of competitor MoneyGram by Ant Financial or Euronet doesn’t change WU’s strategy
  • NOTE: March 14, MoneyGram-Euronet a Greater Threat to Western Union: Street Wrap
  • NOTE: Feb. 10, Western Union’s ‘WU Way’ Program Raises Concerns, Analysts Say
  • NOTE: Jan. 19, Western Union to Pay $586 Million Over Failure to Stop Fraud
    • WU Said to Keep Compliance Spending Unchanged After Settlement

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
WU US (Western Union Co/The)

People
Rajesh Agrawal (Western Union Co/The)

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UUID: 7947283

HALISTER1: Imperial Oil Limited - DBRS Rating Report

Imperial Oil Limited - DBRS Rating Report

Alert: HALISTER1
Source: DBR (Dominion Bond Rating Service)

Tickers
IMO CN (Imperial Oil Ltd)

People
Eric Eng (DBRS Ltd)
James Jung (DBRS Ltd)

Topics
Credit Analysis Research
Credit Research
Fixed Income Research
Industry & Sector Research
Investment Research

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UUID: 7947283