HALISTER1: EU CREDIT DAILY: Macro Clouds; Norway Vs VW, British Land Up

EU CREDIT DAILY: Macro Clouds; Norway Vs VW, British Land Up

(Bloomberg) -- Reports that Norway’s sovereign wealth fund is planning to sue Volkswagen in response to the emissions scandal keep corporate credit event risk elevated, writes Bloomberg strategist Simon Ballard.
  • Asian equity markets trading higher with oil stronger may offer some support for European mkts at open this morning
    • But weak China April factory output, retail sales and fixed-asset investment over weekend likely to be a drag on any positive sentiment; Whitsun holiday may also cap volumes today
  • Global macro, Brexit, U.S. elections and corp earnings likely remain key drivers of risk asset sentiment
    • Just over 5 weeks until the U.K. referendum on EU membership there’s still little meaningful impact on GBP corp credit spreads
  • Macro data points this week to include G-7 finance meeting in Japan as global growth concerns persist; U.S. inflation data eyed for next hint on Fed policy direction
  • Risk Appetite Model sees volatility decline to lowest lvl since December 11 last year
  • CDX IG currently +1.7bps at 83.26 in overnight session; iTraxx Asia Ex Japan IG is currently -0.3bps at 144.38
NEWS
  • Corporate News
  • British Land FY Underlying Profit Up; Rental Growth Strengthened
  • Nordgold 1Q Ebitda Down 36% Y/y to $119.3m
  • Sony Financial Forecasts Profit Below Analyst Estimate
  • Vodacom Increases Growth Forecasts on Rising Network Investment
  • Akzo Nobel India Rises After 4Q Net, Sales Beat Estimates
  • Financial News
  • VTB 1Q Net 1.7b Rubles vs Loss of 14.3b Rubles Y/y
  • Bank of Singapore Sees Asia Rich Shift to Paying Fees for Advice
  • Bank of Baroda Falls After Surprise 4Q Loss, NPA Addition View
  • Credit Rating News
  • Saudi Arabia, Bahrain Ratings Cut by Moody’s on Lower Oil Prices
  • Poland Outlook to Negative by Moody’s, Rating Affirmed
  • Indonesian Bonds Turn Top Asia Performers on Rating Upgrade Hope
  • Fitch Says Growth, Governance Remain Key for Philippine Rating
  • Other News
  • Wall Street’s Bond Forecasters Splinter as Fed Credibility Wanes
  • DP World Said to Hire Banks for Benchmark Dollar Sukuk Sale
ANALYST VIEWS
  • Secondary spreads will find it difficult to rally amid poorer data from China over the weekend; but any weakness will be limited and the asset class will outperform stocks: creditmarketdaily.com
NEW ISSUES
  • Daimler $100m 2.125% 4/2020 Tap MS +100
  • Deutsche Bank EU150m 4/2019 FRN Tap
  • EIB GBP1b 9/2021 UKT +45
  • Metrovacesa EU700m 6Y MS +238
  • 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
VOW GR (Volkswagen AG)

To de-activate this alert, click here

UUID: 7947283