Halister News

(Bloomberg) -- U.K government Autumn Statement later today expected to highlight GBP100b cost of Brexit to U.K. economy and consequent ‘eye-watering’ U.K. debt levels; may trigger renewed weakness in GBP credit spreads relative to EUR, USD, Bloomberg strategist Simon Ballard writes.

• Asian credit/equity rallying again overnight on global macro optimism; suggests EUR credit may open firmer
  • Lufthansa debt/equity may have weaker bias; company to cancel 876 flights today due to pilot strike
• Half-day trading in U.S. ahead of Thanksgiving and Japan closed today may curb EUR market liquidity; USD credit spreads expected to be well underpinned into long weekend

• Bloomberg Barclays Eur-Agg Corporate index closed Tuesday at 124bps (flat); Bloomberg Barclays Eur HY index closed at 425bps (flat)
• CDX IG closed Tuesday -0.9bps at 74.77; iTraxx Asia Ex Japan IG is currently -2.3bps at 125.58 and iTraxx Australia quoted -2.2bps at 108.58

NEWS

• Corporate News
• Lufthansa Strike to Hit 40% of Flights After Walkout Allowed
• Infineon 4Q Segment Result Misses Ests.; Sees 1Q Rev. Decline
• HPE Forecasts Profit That May Disappoint on Server Revenue
• Thomas Cook Sees FY17 Operating Result In Line With Current Ests
• John Menzies Confident of Being ‘Marginally Ahead’ of Estimates
• Comet Sees Fy16 Results at Upper End of Issued Guidance Range
• United Utilities 1H Operating Profit Up, On Track for Targets

• Financial News
• Generali to Sell Less-Profitable Units and Lower Operating Costs
• Banco Popular Board Members Seeking Chairman Removal: Expansion
• RHB Bank 3Q Net 505.3m Rgt vs 229.3m Rgt Y/y
• CMC Markets 1H Pretax Drops 29%; Trading Activity Still Subdued
• HSBC Said to Advise Saudi Pension Fund on Financial Hub Sale

• Rating News
• Fitch Affirms Incitec Pivot at ‘BBB’; Withdraws Rating
• S&PGR Affirms Tasmania ‘AA+/A-1+’ Rtgs; Otlk Stable
• S&PGR Affirms Tascorp ‘AA+/A-1+’ Rtgs; Otlk Stable

• Other News
• The ‘Widow-Maker’ Returns as Shorts Target Australian Banks
• OPEC Said to Defer Question of Iran, Iraq Cuts for Ministers
• Debt Extremes Keep Growing in Sweden as Mortgage Burdens Swell

ANALYST VIEWS

• Even if the markets stay positive between now and year-end, we will be lucky to recover (recent) weakness. Carry and a rise in the underlying (govt bonds) are going to be the main drivers for any noticeable performance between now and the end of 2016: creditmarketdaily.com

NEW ISSUES

• AFD EU850m Long 7Y Interp. FRTR +15
• BP Capital Markets EU925m 1/2024 MS +77
• Grenke Finance EU150m 2/2022 MS +113
• Heineken EU500m 1/2027 MS +75
• Land NRW EU1b 2/2024 MS -14
• Sp Mortgage Bank EU500m 5Y Covered Bond MS +2
• SES EU550m PNC 1/2024 Hybrid 5.75%
• Suedzucker EU300m 7Y MS +97
• European IG credit pipeline here and HY credit pipeline 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.