HALISTER1: EU CREDIT DAILY: All Eyes on NFP; Telstra Cuts, China Auto Sales

EU CREDIT DAILY: All Eyes on NFP; Telstra Cuts, China Auto Sales

(Bloomberg) -- Corporate credit saw tightening bias yesterday amid more optimistic global markets, with the pound recovering slightly and equities rallying. However, EUR risk assets could see renewed consolidation today before the U.S. jobs report, Bloomberg strategist Simon Ballard writes.
  • Asian credit markets turned lower overnight; U.S. Treasuries strengthened in the wake of persistent macro concerns and after deadly shootings in Dallas
  • Credit spreads continue to gyrate on macro headlines, even as possibility of a Fed rate move seen limited in the context of Brexit, global macro weakness
    • European credit market volumes may be muted this morning before NFP
  • Risk Appetite Model shows spreads and volatility resuming firm tone
  • CDX IG closed +0.3bps at 81.82 in overnight session; iTraxx Asia Ex Japan IG currently -0.9bps at 138.99
NEWS
  • Corporate News
  • China Auto Sales Growth Accelerates on Rising SUV Demand
  • LG Electronics 2Q Oper. Profit 584.6b Won; Est. 627.7b Won
  • Huaneng Renewables Sees First-Half Profit Rise as Costs Fall
  • Fabege 2Q Rental Income, Profit Increases
  • Mongolian Mining Seeks Debt Moratorium as It Outlines Winding Up
  • Telstra to Cut 326 Jobs, AAP Reports
  • Financial News
  • Monte Paschi Seeks to Deal With EU10B Bad Loans in 2 Wks: Sole
  • Nomura’s Asia Execution Chief Watanabe to Leave After 27 Years
  • Dare to Dream: The Bank Mergers That Could Help Fix the Industry
  • Credit Rating News
  • S&PGR Rpt: Global Economy Darkens Japan 2016 Midyear Corp Otlk
  • Fitch Affirms Tokio Marine & Nichido at IFS ’A+’; Negative
  • S&PGR Afrms Rtgs On HSBC’s Asia Insurance Units; Otlk Stable
  • Other News
  • Amid U.K. Commercial Property Crisis, Bank Exposure Tops GBP65b
  • U.K. Has Worst June LFL Sales in Over Decade on Brexit, BDO Says
  • Snipers Kill Four Policemen in Dallas at Black-Deaths Protest
ANALYST VIEWS
  • Market impact of Brexit-related news flow will start to subside next week. Primary markets seem to have been caught up in the brouhaha, but only when the market reaction elsewhere is extreme: creditmarketdaily.com
NEW ISSUES
  • Hessen EU375m 0.375% 3/2023 Tap MS -12
  • Nykredit Realkredit EU500m 5Y SRN MS +98
  • 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.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
TLS AU (Telstra Corp Ltd)

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