Halister News

(Bloomberg) -- A China stocks rally led Asia credit markets stronger overnight and Europe could also have a constructive tone at the open. Volumes could be relatively muted however, with the U.S. closed for Columbus Day, Bloomberg strategist Simon Ballard writes.

• Investor focus is expected to remain on sterling and GBP risk assets as well as any further developments in the Deutsche Bank capital position
• Credit fundamentals also under the spotlight this week with start of 3Q U.S. corp earnings season
  • Alcoa first to announce after U.S. close Tuesday; JPMorgan, Wells Fargo and Citi among others due to follow later in week
• U.S. political uncertainty set to intensify ahead of Nov 8 election and in the wake of the heated second U.S. presidential debate last night, which polls suggest was won by Mrs Clinton; may damp investor appetite for USA Inc risk
• Risk Appetite Model registers modest decline in volatility as market sentiment steadies
• Bloomberg Barclays Eur-Agg Corporate index closed Friday at 113bps (-1bps); Bloomberg Barclays Eur HY index closed at 405bps (+1bps)
• CDX IG closed Friday +0.3bps at 74.82; iTraxx Asia Ex Japan IG currently -1.8bps at 114.22 and iTraxx Australia quoted +0.4bps at 103.15

NEWS

• Corporate News
• Alcoa’s Last Earnings Call Before Split to Tout Parts Prospects
• Anheuser-Busch InBev announces closing of Belgian Offer and Results of Elections of SABMiller
• Givaudan 3Q Sales Meet Estimates, Repeats 2020 Targets
• Renault Working on Low-Cost Electric Car, Les Echos Says
• Telefonica Brasil Names Carvalho CEO After Genish Resigns
• Samsung Said to Halt Note 7 Output Amid Reports of New Fires
• ADP Cuts 2016 Ebitda Forecast as September Traffic Slides

• Financial News
• Goldman Sachs Says No Decision Taken on Post-Brexit U.K. Staff
• Lloyds May Cut Dividend, Is Lowering Deposit Rates, Citi Says
• Bank of Russia Revokes License of Cherkessk-Based KB Razvitie
• National Bank of Abu Dhabi Raises $621m Via Formosa Bond

• Credit Rating News
• Aussie Banks Face Rising Commercial Property Risks, Moody’s Says
• Moody’s assigns (P)Baa3(hyb) rating to Julius Baer Group’s proposed high-trigger AT1 securities

• Other News
• Portugal Says It’s Preparing Rules to Help Banks Sell Assets
• Illusion of Liquidity Burns Traders Blindsided by Pound’s Crash

ANALYST VIEWS

• Sterling, yields, Deutsche Bank, taper-tantrums, non-farms, oil.. it’s all kicking off: creditmarketdaily.com

NEW ISSUES

• Hellenic Petroleum Finance EU375m 5Y at 5%
• N&W Global Vending EU300m 7NC3 7% at 98.5
• REN Finance EU200m 2.5% 2/2025 Tap MS +135
• Sodexo EU600m 10.5Y MS +45
• 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.