HALISTER1: EU CREDIT DAILY: Gates Go Up; M&S Misses, Danone Buys Milk

EU CREDIT DAILY: Gates Go Up; M&S Misses, Danone Buys Milk

(Bloomberg) -- While there are no meaningful signs of investor capitulation, the corporate bond space does appear to be in defensive mode, Bloomberg strategist Simon Ballard writes; short-dated, low-beta investment-grade products may remain the asset class of choice for now.
  • Few investors seem to be advocating buying higher-yielding, higher-risk assets yet, reflecting the lack of certainty on the political and macroeconomic outlooks
  • GBP risk assets likely to remain laggards as markets continue to feel impact of Brexit
    • Fund managers installing gates on property funds likely to further undermine GBP credit-market sentiment over coming days
  • Fed minutes overnight highlighted concerns over global growth; focus now turns to Friday’s jobs report
  • Risk Appetite Model: Who remembers 2010?
  • CDX IG closed -2.4bps to 81.55 in overnight session; iTraxx Asia Ex Japan IG currently -0.7bps to 140.11
NEWS
  • Corporate News
  • Samsung Profit Tops Estimates as S7 Keeps Winning Customers
  • Suedzucker 1Q Revenue Declines, Net Income More Than Doubles
  • M&S 1Q Clothing and Home LFL Sales Miss Estimates
  • Robert Walters 2Q Net Fees Up; Growth Strongest in Europe, Asia
  • Dunelm Sees FY Pretax In Line With Market Estimates
  • Ford 1H China Vehicle Sales Rise 6% Y/y to 577,097 Units
  • Sports Direct FY Ebitda Down 0.5%, Performance Disappointing
  • Nissan Recalls 11,058 Vehicles in Japan on Hybrid System Defect
  • Danone to Buy U.S. Soy-Milk Maker WhiteWave for $10 Billion
  • Financial News
  • Rabobank To Take Additional EU500m Charge For Dutch Rate Swaps
  • Mizuho to Spur Small-Business Coverage With 200 More Bankers
  • CaixaBank Cut Its Repsol Stake to 10% From 12%: Expansion
  • Russia Revokes License of Mytishchi-Based Lender Evrocitibank
  • Credit Rating News
  • S&PGR Affirms ADB Rtgs At ’AAA/A-1+’ With Stable Otlk
  • Australia’s Rating Outlook Cut to Negative From Stable by S&P
  • S&PGR: Major Australia Banks, Select Subs Otlks Now Negative
  • Other News
  • EU Steel Industry Wins Wider Probe of Hot-Rolled-Coil Imports
  • Italy, EU Bank Talks Said Stuck on Sharing Burden With Investors
  • Millionaires Fleeing Negative Yield Targeted by Japan-Swiss Fund
ANALYST VIEWS
  • The EUR/GBP corporate bond markets have had a stellar (1H) 2016. Spreads have held firm for the most part, underlying yields have plummeted, the default rate has stayed below 2%, corporate event risk has been de minimis and returns have excelled: creditmarketdaily.com
NEW ISSUES
  • BNG EU1b 8Y Social Bond MS -3
  • Nestle $600m Reg S 5Y MS +52
  • Rentenbank $300m 1.875% 4/2023 Tap MS +34
  • Rhineland-Pfalz EU750m 2Y MS -15
  • 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)

To de-activate this alert, click here

UUID: 7947283