HALISTER1: EU CREDIT DAILY: Apple Taxes; Bouygues Decline, GS Property Loss

EU CREDIT DAILY: Apple Taxes; Bouygues Decline, GS Property Loss

(Bloomberg) -- While Apple’s Irish tax bill implications continue to dominate headlines, credit market focus will also be on any surprise action at Brazil’s central bank rate decision today, Bloomberg strategist Simon Ballard writes.
  • August set to finish on a firm note across risk assets; new issue activity sprung back to life yesterday and today is also likely to be buoyant
    • Spreads remain well-underpinned; Bloomberg-Barclays EuroAgg corp bond index currently 107bps OAS, -60bps from Feb. wide
  • Analysts expect Brazil central bank to keep rate at 14.25% after unanimously voting to hold steady in July
  • CDX IG closed +0.1bps at 75.07 in overnight session; iTraxx Asia Ex Japan IG currently -0.4bps at 112.67 and iTraxx Australia quoted -0.2bps at 99.45
NEWS
  • Corporate News
  • Canada’s Potash Corp., Agrium in Talks on Potential Merger
  • Bouygues 1H Sales Decline, Keeps Outlook; Names Two Deputy CEOs
  • Coral Group 3Q Net Revenue Rises 10%, Ebitda Rises 13%
  • Scandinavian Tobacco 1H Reported Ebitda DKK632m; Net DKK346m
  • HeidelbergCement Tanzania First-Half Profit TZS22.7b vs TZS22.1b
  • Iliad Boosts Sales, Earnings as Promotions Help Lure Customers
  • SK Telecom to Release Voice-Command AI Speaker in South Korea
  • SSE Says U.K. Hornsea Gas Withdrawals Halted After Outage
  • Tepco Jumps Most in Year After Governor Opposing Restart Retires
  • Financial News
  • BGZ BNP Paribas Says 1H Net More Than Triples to 64.6m Zloty
  • Goldman Said to Have Lost $1.8 Billion U.S. Property Deal
  • Credit Rating News
  • S&PGR Dwngrds Intelsat To ’CC’ From ’CCC’; Rtgs On Watch Neg
  • S&PGR Affirms Fresnillo plc ’BBB’ Ratings; Outlook Stable
  • Other News
  • U.K. Banks Eyeing EU Market May Find ‘Equivalence’ Cold Comfort
  • Europe Bankers See $2.5 Billion of Bonuses Vanish in Stock Rout
ANALYST VIEWS
  • We’re surprised spreads have not tightened more given the ECB’s involvement. Still, we remain confident that B+100bp on the index and an index yield of around 0.70% are likely by the time the year is out: creditmarketdaily.com
NEW ISSUES
  • Citycon EU350m 10Y MS +100
  • Coca-Cola EU500m 20Y MS +45
  • DNB Boligkreditt EU1.5b 10Y Covered MS +3
  • Evonik Finance EU1.9b 4.5Y, 8Y, 12Y Bonds
  • HSBC Holdings EU2b 8Y MS +87
  • KPN EU625m 4/2025 MS +60, EU625m 12Y MS +80
  • Lower Saxony EU250m 0.5% 6/2026 Tap MS -16
  • Mitsubishi UFJ Lease & Finance $500m 5Y T +110
  • NWB Bank EU250m 1.25% 5/2036 Tap MS +3
  • 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)

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