Halister News

(Bloomberg) -- The November Fed meeting culminates this evening but the result may be little more than a distraction to credit markets. ADP jobs data later and then Friday’s U.S. nonfarm payrolls should be far more significant in terms of a litmus test for risk appetite ahead of a potential Fed rate increase in December, Bloomberg strategist Simon Ballard writes.

• WIRP shows just 16% chance of a Fed rate hike today; 68% at December meeting; officials likely to ramp up rhetoric Wednesday while keeping options open
• U.S. election angst expected to remain a drag on credit- market sentiment over coming week, damp risk appetite
  • Asian credit markets sharply weaker overnight, suggesting negative bias to EUR, U.S. futures Wednesday; risk aversion spiking as polls shows Trump edging ahead of or closing gap on Clinton
• Risk Appetite Model Holding Steady Ahead of the Fed and U.S. Election Risk
• Bloomberg Barclays Eur-Agg Corporate index closed unchanged yday at 109bps; Bloomberg Barclays Eur HY index closed at 379bps (+4bps)
• CDX IG closed +1.9bps at 79.98; iTraxx Asia Ex Japan IG is currently +1.5bps at 117.76 and iTraxx Australia quoted +1.9bps at 105.33

NEWS

• Corporate News
• Maersk Profit Declines as Container Line Industry Suffers
• Hugo Boss Profit Tops Estimates on New CEO’s Cost Reductions
• Next 3Q Full-Price Sales Miss Estimates, Narrows FY Outlook
• TDC 3Q Sales, Ebitda Beats Ests.; Raises 2016 Outlook
• ISS 3Q Sales DKK19.6b Match Ests.; Extraordinary Div DKK4/Shr
• Persimmon Says 3Q Shows Continuation of Strong Summer Sales
• Anglo Pacific Raises 2016 Dividend Guidance on Strong Coal Price
• Wetherspoon 1Q Total Sales Up 2.3%, Sees FY Operating Margin 7%
• G4S on Track to Cut Leverage, 9-Month Revenues Up 5.7%
• Smurfit Kappa 3Q Revenue, Ebitda Margin Rise
• Wolters Kluwer 9-Mo. Adj. Operating Profit Up; Keeps FY Guidance
• Lufthansa Slows Capacity Growth, Curbs Spending on Fare Pressure
• Casio 2Q Cuts FY Net Target by 46%; Plans 15b Yen Share Buyback

• Financial News
• Comdirect 3Q Profit Slumps 29%; NII Drops 12%; Commissions -12%
• OCBC Cites Compliance Burden as Reason to Grow Private Bank
• UBS Sees Middle East M&A Revival as Bank Leaps Up League Tables
• OneSavings Confident of Achieving Net Loan Book Growth Target
• Spain Puts Brakes on Bankia-BMN Merger, El Economista Says
• Santander Revenue May Keep Suffering From Brexit: Bankhaus Lampe
• ADB Pledges to Boost Bangladesh Lending by 60% to $8b Over 5 yrs

• Rating News
• S&PGR Affirms Investment Grade Ratings on India, Outlook Stable
• Singapore’s Top 3 Banks Profitability Under Pressure: Moody’s
• S&PGR Rates Australia Pacific Airports (Melb) Pty Ltd MTN ’A-’
• Fitch Affirms Mitsui Life at IFS ’A’/Negative; Withdraws Rating

• Other News
• U.S. Banking Regulator Names New Supervisor to Watch Wall Street
• CIC Group Said to Mull Bid for $6 Billion Property Owner GLP
• Carney May Have a Bigger U.K. Inflation Headache Than the Pound

ANALYST VIEWS

• Fixed-income markets will need to brace for a soul- destroying (rather performance-battering) 2017. We’re hanging in there for 2016 with some still very good returns, all things considered, but there is a non-trivial probability of it all going awry if rate markets so wish: creditmarketdaily.com

NEW ISSUES

• Aberdeen City Council GBP370m 2/2054 Linker UKTi +125
• 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.