HALISTER1: EU CREDIT DAILY: Buoyant Risk, TEF Sells Unicom, S.Miguel Debt

EU CREDIT DAILY: Buoyant Risk, TEF Sells Unicom, S.Miguel Debt

(Bloomberg) -- Friday’s strong U.S. jobs report helps fuel robust Asian credit mkts overnight, even as China warns on the global macro outlook, underscoring questions about m-t risk asset fundamentals, Bloomberg strategist Simon Ballard writes.
  • Political uncertainty in U.K. may continue to weigh on GBP risk assets, even as BOE seen considering rate cut this week to cushion Brexit weakness
    • Defensive investor sentiment has re-steepened GBP credit quality curve to 397bps, +60bps in past month
  • Asia iTraxx and EUR equity futures trading higher this morning suggesting a firm open to EUR credit mkts
  • Risk Appetite Model holding steady post U.S. payrolls report
  • CDX IG closed -3.9bps at 77.94 in overnight session; iTraxx Asia Ex Japan IG currently -5.9bps at 132.70
NEWS
  • Corporate News
  • Formosa Chemicals 2Q Net Income NT$13.3b; Est. NT$8.96b
  • Telefonica Sells 1.5% China Unicom Stake for $364 Million
  • Eskom May Write Off Interest on Municipal Debt
  • Advanced Petrochemical Second-Quarter Profit Falls 24%
  • Pinewood Group Says Strategic Review in Progress
  • Samsung Left Off China Battery List Spooks EV Maker Jianghuai
  • San Miguel Plans to Seek Debt for Refinancing, Mostly in Peso
  • Financial News
  • Bank Indonesia Sees Weak Demand as Main Challenge to Growth
  • Swedish Banks Likely to Replicate Nykredit Tier 3 Issue
  • Deutsche Bank Faces Court Deadline for Thoma Succession
  • Standard Chartered Starts Brokerage in Japan With 100 Staff
  • Credit Rating News
  • Moody’s Says NBAD, First Gulf Bank Merger Is Credit Positive
  • S&PGR Affirms Mubadala Development Co. At ’AA/A-1+’; Otlk Stbl
  • S&PGR Affirms International Petroleum Investment At ’AA/A-1+’
  • Other News
  • Canada’s Utilities Power Top Bond Returns as Yield Meets Safety
  • The Week Brexit Got Real for Investors in Frozen Property Funds
ANALYST VIEWS
  • Corporate bond spreads and yields are heading towards record lows, leaving some to question whether they’re overcooked, and ponder the risks to current position: creditmarketdaily.com
NEW ISSUES
  • CIBC GBP250m 3/2019 Covered FRN Tap 3mL +46
  • 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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