Halister News

(Bloomberg) -- While ECB isn’t widely expected to adjust policy this week, there’s growing expectation that an extension of its QE beyond March 2017 could be announced as early as the December meeting. With the Fed seemingly on the verge of a rate rise and GBP still under Brexit pressure, a “low for longer” ECB outlook could continue to favor EUR credit versus USD and GBP counterparts, Bloomberg strategist Simon Ballard writes.

• 3Q earnings period building momentum; in the U.S., financial results helping to buoy overall “surprise” growth numbers, led by Goldman Sachs
• China GDP data overnight in line with optimistic global macro picture, even as industrial production missed consensus; should be net positive for risk-market sentiment
  • Generic risk appetite remains susceptible to headline event risk though; Brexit and U.S. election among key drivers of near-term credit-market direction

• Risk Appetite Model remains well anchored ahead of ECB
• Bloomberg Barclays Eur-Agg Corporate index closed yesterday at 112bps (unch); Bloomberg Barclays Eur HY index closed at 386bps (-5bp)
• CDX IG closed -0.7bps at 75.17; iTraxx Asia Ex Japan IG is currently -0.4bps at 117.24 and iTraxx Australia quoted -0.8bps at 104.25

NEWS

• Corporate News
• Carrefour Third-Quarter Sales Growth Beats Estimates on France
• Nissan CEO Ghosn Said to Become Chairman of Mitsubishi Motors
• Sabic Third-Quarter Profit Drops 6.8% on Lower Prices, Sales
• Foxtons 3Q Rev. Falls on Reduced Activity in London Real Estate
• Reckitt 3Q LFL Sales Miss Ests., Sees 2016 LFL Sales Up 4%
• Travis Perkins Sees FY Adjusted Ebitda Slightly Below Consensus
• Hotel Chocolat FY Revenue +12%, Digital Revenue Up 20%
• Rentokil 3Q Revenue Rises, Maintained Full Year Guidance
• Eurotunnel 3Q Revenues Increase 4%; Confirms Positive Outlook
• Elisa 3Q Ebitda Tops Estimates; Keeps 2016 Forecasts
• Telenor’s Digi 3Q Ebitda Rises; Sees ’16 Ebitda Margin Below 45%
• Metro Sales Meet Estimates as Web, Delivery Businesses Grow
• Kvaerner 3Q Revenue, Ebitda Beat Estimates
• ASML 3Q Sales Beat, Profit Misses; 4Q Margin Seen Above Ests.

• Financial News
• Handelsbanken Profit Gains After Sale of Industrivaerden Stake
• Woori Bank 3Q Net 355.6b Won; Est. 345.1b Won
• China Construction Bank Sets Up Property Insurance Unit
• Qatar’s CBQ Posts First Quarterly Loss in At Least 10 Years
• Citic Group Provides Final Guidance for Samurai Bond Sale

• Rating News
• Moody’s changes outlooks of 22 Chinese GRIs and rated subsidiaries to stable from negative
• S&PGR Affirms State of Queensland/QTC At ’AA+/A-1+’; Otlk Stable
• S&PGR Affirms ’BBB’ Ratings On Grupo de Inversiones Suramerica

• Other News
• China Growing at 6.7% Opens Window to Deliver Debt-Curb Vow
• Time for ECB to Taper QE Won’t Be Ripe Until Late 2017: Chart

ANALYST VIEWS

• We are still bullish corporate risk. Valuations have displayed some sturdiness amid volatility elsewhere while market participants have not panicked at all. That has been most evident in the sterling corporate bond market: creditmarketdaily.com

NEW ISSUES

• JRP Group GBP250m 10Y Tier 2 Notes to Yield 9%
• KfW EU1b 1.5% 6/2024 Tap MS -29
• Poland EU750m 12Y MS +48, EU500m 30Y MS +120
• Segro European Logistics EU500m 7Y MS +120
• Snam EU500m 4Y MS +20
• State of Thuringia EU500m 10Y MS -19
• World Bank EU1b 1/2033 MS -13
• 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.