HALISTER1: INDIA RATINGS: Royal Tyres Downgraded to B

INDIA RATINGS: Royal Tyres Downgraded to B

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
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DOWNGRADE
  • Royal Tyres
    • Long-term fund-based facilities cut to B from B+ at ICRA
    • Cites decline in revenues over the last four years due to weak demand in export market primarily in European countries
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Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: Lombard Odier Sees Room for Emerging Currencies to Gain in 2017

Lombard Odier Sees Room for Emerging Currencies to Gain in 2017

(Bloomberg) -- The U.S. dollar may not appreciate this year, giving scope for emerging-market currencies and assets to gain, Jean-Louis Nakamura, Lombard Odier’s chief investment officer for Asia Pacific, says in briefing in Singapore.
  • Co. is skeptical over the possibility of a “true fiscal bazooka” from the Trump administration: HK-based Nakamura
  • Cyclical conditions of most EM economies are much better now
  • Co. prefers EM foreign-currency bonds as they have lower volatility compared to EM local debt; likes sovereign bonds of Brazil and Indonesia
  • EM Asia credit is attractive as they offer a much higher spread for the “rich quality” of their balance sheets; supply of new bonds is also shrinking
  • Co. is positive on banking shares as they are likely to benefit from higher yields and deregulation moves
  • READ: Goldman Likes Emerging Debt, So Long as There’s No Link to Trump
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Jean-Louis Nakamura (Lombard Odier Darier Hentsch)

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UUID: 7947283

HALISTER1: BOJ Pinning Down 10-Year Yield Makes 20-Year Attractive: Mizuho

BOJ Pinning Down 10-Year Yield Makes 20-Year Attractive: Mizuho

(Bloomberg) -- Bank of Japan’s policy of keeping benchmark 10-year yield around zero will keep the entire curve in check, said Noriatsu Tanji, senior bond strategist at Mizuho Securities.
  • Favors long 20-year debt given its carry and roll-down returns, he said in phone interview Tuesday
  • No policy change from BOJ this year
  • Fed unlikely to quicken pace of rate increases because such action risks dollar strength
  • U.S. yields will eventually peak out and weigh on Japanese yields
  • NOTE: Japan’s 10/20-year yield spread now at 59bps after reaching 62bps on Feb. 8, widest since February 2016
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
8301 JP (Bank of Japan)

People
Noriatsu Tanji (Mizuho Securities Co Ltd)

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UUID: 7947283

HALISTER1: Aussie to Rally on If Green Shoots Found in Jobs Data: Analysis

Aussie to Rally on If Green Shoots Found in Jobs Data: Analysis

(Bloomberg) -- Aussie dollar may extend its rally if January jobs data reveals the fourth straight month of full-time employment gains and that more youths are finding work, Bloomberg strategist Michael G Wilson writes.
  • Australia’s full time employment index may post its fourth consecutive gain on Thursday, matching the positive run seen in Sept. 2015 which saw the AUD climb about 2% over 4 months
    • NAB business conditions survey on Feb. 14 saw the employment component soaring to its best level since 2011
  • AUD/USD currently at 0.7657; initial test seen at 0.7778 Nov. 8 high; slow stochastic %K seen consolidating at or above 75 in February, suggesting bullish momentum intact
  • AUD/NZD may revisit a series of declining highs that began at 1.0772 on Oct. 14; spot currently steady at 1.0701
    • Slow stochastic in overbought territory at 91; broken trend-line resistance with support now at 1.0524 100-DMA
  • Australia employment data due on Feb. 16 may show 10k jobs added in January following a 13.5k gain in December, according to median est. of 29 economists in Bloomberg survey
    • Estimated range: -11k to +28k
    • Unemployment rate seen steady at 5.8%
  • December employment saw the sector for 15-24 year-olds register its first increase in three months
    • Sector is constant source of frustration for govt; a second monthly increase in January would be reflective of a broadly improving theme
  • Risks to the bullish Aussie view include:
    • Narrowing Aussie/U.S. rate differential if Yellen, Dudley or Fischer reiterate the hawkish tone set by the Fed chair Tuesday following a possible strong U.S. CPI print Thursday
    • Weak local jobs print that comes in the form of strong headline number built mainly on increase in part-time labor
    • Under such outcome, immediate triple-top resistance near 0.7700 may hold
  • NOTE: Michael Wilson is an FX strategist who writes for First Word. The observations he makes are his own.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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UUID: 7947283

HALISTER1: *SOFTBANK GROUP TO BUY FORTRESS INVESTMENT GROUP FOR $3.3B

*SOFTBANK GROUP TO BUY FORTRESS INVESTMENT GROUP FOR $3.3B

Alert: HALISTER1
Source: BN (Bloomberg News)

Tickers
9984 JP (SoftBank Group Corp)
FIG US (Fortress Investment Group LLC)

People
Benjamin Spicehandler (Sard Verbinnen & Co)
Gordon Runte (Fortress Investment Group LLC)
James Barron (Sard Verbinnen & Co)
Masayoshi Son (SoftBank Group Corp)
Paul Kranhold (Sard Verbinnen & Co)

Topics
Key Comm. Real Estate News

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UUID: 7947283