HALISTER1: EU CREDIT DAILY: GBP Credit in Focus; HSBC, Total, AngloGold

EU CREDIT DAILY: GBP Credit in Focus; HSBC, Total, AngloGold

(To subscribe to EU Credit Daily, click here and set alert via ‘"Display & Edit’’) By Simon Ballard (Bloomberg) -- After the much-lauded recovery during the course of last week, credit-mkt sentiment weakened sharply just before the weekend, but Asian equity gains this morning suggest mkts may regain some composure. The weakness appeared to be fueled by macro growth, monetary-policy concerns as well as the intensifying polemic surrounding U.K.’s EU membership, Bloomberg strategist Simon Ballard writes.
  • GBP credit mkts may remain under pressure this week as EU referendum date announced; London mayor supports ‘Brexit’
  • Financials and Asia growth outlook combined in spotlight as HSBC reports quarterly loss
  • Risk Appetite Model reflects nervous anticipation of the week ahead
  • CDX IG currently -0.7bps at 118.29 in overnight session; iTraxx Asia Ex Japan IG is currently -2.0bps at 161.16
NEWS
  • Corporate News
  • AngloGold Returns to Profit in Fourth Quarter as Costs Drop
  • Total Says Gas Flows Resumed at U.K. Bacton Seal on Sunday
  • Vattenfall Halted Swedish Reactor Ringhals-1 Until Tuesday
  • Airbus Profit Poised to Gain on Planes; Copters Drag: 4Q Preview
  • AB Foods Raises FY Adj. EPS Outlook; 1H Primark Sales Miss Ests.
  • Bovis Homes FY Rev. Beats; Reports Robust Trading in Early 2016
  • Financial News
  • HSBC Has Quarterly Loss on Lending Income, Bad-Loan Charges
  • Deutsche Bank Names Jamal Al Kishi as CEO of Middle East, Africa
  • EFG International to Buy BTG’s BSI in $1.34 Billion Deal
  • Aussie Banks’ Debt Is Ugliest in More Than a Decade Versus U.S.
  • Hang Seng Bank Extends Gains After FY Results, Special Dividend
  • DBS Profit Rises on Interest Income as Bad-Loan Ratio Holds
  • Bank of Ireland Underlying Pretax Profit EU1.2b, Up 30% Y/y
  • Rating News
  • Moody’s May Revise U.K. Rating to Negative If Vote for ‘Brexit’
  • S&P Report Says Aust Bank Otlk Steady Amid Balanced Forces
  • S&P Downgrades Bank of North Dakota To ’A+/A-1’; Otlk Stbl
  • Other News
  • Cameron Challenged by Johnson as London Mayor Backs ‘Brexit’
  • Negative Rates Advocate Fujimaki Says BOJ’s Kuroda Got It Wrong
  • IMF’s Lagarde Says Oil May Stay Low for Longer Than Expected
  • Market Calm May Be Only a Brief Reprieve: Mohamed A. El- Erian
ANALYST VIEWS
  • The spiral of contagion – for once – isn’t about the domino effect which comes from falling markets, one collapse leading to another in a different country/region/asset. No, the contagion effect of the moment is negative interest rates and some kind of race down a bottomless pit: creditmarketdaily.com
NEW ISSUES (Friday)
  • DNB Bank EU750m 7Y Bonds MS +90
  • CAF EU250m 1% 11/2020 Tap MS +80
  • World Bank GBP200m 1.375% 12/2020 Tap UKT +36
  • 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)

Tickers
HSBA LN (HSBC Holdings PLC)

People
Christine Lagarde (International Monetary Fund)
Jamal Kishi (Deutsche Bank AG)

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