HALISTER1: EU CREDIT DAILY: ECB Ahead; Novartis Beats, VW Pays, UBS Snag

EU CREDIT DAILY: ECB Ahead; Novartis Beats, VW Pays, UBS Snag

(Bloomberg) -- Eggs, chips and beans. Likely to be a quiet session in Europe today ahead of the ECB (and Riksbank) rate decisions, even if there is little expectation of any move in rates, Bloomberg strategist Simon Ballard writes.
  • Risk appetite looks firm going into ECB decision but key may be tone of any comments on macro growth outlooks
    • Technical bid for credit may be dented if monetary stimulus portrayed as having run its course while growth prospects remain anemic; central bank rhetoric increasingly ruling out chances of ’helicopter money’
  • Soros’ China comments offer implicit warning against risk appetite exuberance, highlight need for fundamentally-driven investment strategy
  • Structural demand for spread product still reflected in Risk Appetite Model’s slow but steady compression
  • CDX IG currently -1.1bps at 72.93 in overnight session; iTraxx Asia Ex Japan IG is currently -1.1bp at 137.60
NEWS
  • Corporate News
  • Novartis 1Q Core EPS Beats Estimates; Keeps FY16 Forecast
  • SABMiller Fourth-Quarter Sales Advance on Africa, Latin America
  • Sky 9-Month Revenue Rises; 3Q New Customers Adds Beats Estimate
  • Ericsson 1Q Sales, Profit Miss Ests.; Raises Restructuring Est.
  • Pernod Ricard Revenue Meets Analysts’ Estimates on U.S. Demand
  • Saab 1Q Operating Profit Rises; Maintains 2016 Outlook
  • Eurotunnel 1Q Sales Rise 4% to EU279.9b
  • Schneider Electric 1Q Rev. Beats Est., Co. Confirms 2016 Targets
  • Norske Skog 1Q Ebitda Rises From Year Earlier; NIBD Decreases
  • Norwegian Air 1Q Revenue Beats Ests., Net Loss Misses
  • VW Said to Pay At Least $10 Billion in U.S. Diesel-Cheating Suit
  • Financial News
  • UBS, Favored by Bank Investors, Hits Snag in Wealth Expansion
  • Credit Rating News
  • S&P Rpt Examines Key Factors For Toshiba After Downgrades
  • Investors in Leveraged Loans Face Lower Recoveries, Moody’s Says
  • Other News
  • Billionaire Drahi’s Surprise Junk-Debt Binge Caps Chaotic Months
  • Indian Bank Shares Jump as RBI Reported to Ease Bad-Debt Rules
  • Structural Headwinds to Japan Growth Remain Persistent: Moody’s
ANALYST VIEWS
  • And now the unstoppable juggernaut… as bad as the markets were in January and early February, the opposite is now true. The omens appear to be good: creditmarketdaily.com
NEW ISSUES
  • IIC $500m 3Y Reg S FRN 3mL +30
  • Buzzi Unicem EU500m 7Y MS +200
  • KBC Group EU750m 5Y MS +112
  • Heineken EU800m 10Y MS +55
  • Unibail-Rodamco EU500m 11Y, EU500m 20Y Bonds
  • TD Bank EU1b 7Y Covered MS +17
  • HSH Nordbank EU500m 7Y Covered MS +23
  • Hamburg EU750m 10Y MS -1
  • Landesbank Berlin EU150m 0.06% 4/2020 Tap MS -2
  • 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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