HALISTER1: EU CREDIT DAILY: U.S. Election Day; M&S Beats, Henkel in Line

EU CREDIT DAILY: U.S. Election Day; M&S Beats, Henkel in Line

(Bloomberg) -- With Asian credit markets rallying again overnight, as final U.S. election polls show Clinton with slim lead, EUR risk assets look set to open with a firm bias. But trading volumes likely to be low ahead of results, Bloomberg strategist Simon Ballard writes.
  • 3Q earnings season now at critical mass; Toyota among latest companies to post positive results, raise profit outlook
  • Macro data spotlight falls on German Sept. industrial output; will provide the last element of 3Q GDP picture
  • Technical support from ECB CSPP underscored by latest purchase data; ECB added EU2.54bn last week, second biggest weekly accumulation
  • Risk Appetite Model solidly pricing in Clinton victory
  • Bloomberg Barclays Eur-Agg Corporate index closed Monday at 111bps (-1bp); Bloomberg Barclays Eur HY index closed at 384bps (-7bps)
  • CDX IG closed Monday -2.9bps at 77.54; iTraxx Asia Ex Japan IG is currently -0.2bps at 116.45 and iTraxx Australia quoted -1.6bps at 105.66
NEWS
  • Corporate News
  • Toyota Lifts Profit Forecast as Stable Yen Improves Outlook
  • ArcelorMittal 3Q Ebitda Misses; FY ’16 Cash Flow to Exceed Capex
  • M&S 1H Adj. Pretax, 2Q Clothing and Home LFL Sales Beat Ests.
  • New Look 1H Group LFL Sales Fall 8.4%
  • AB Foods Forecasts Higher Profits as World Sugar Prices Increase
  • Imperial Brands FY Adjusted Operating Profit In Line, EPS Beats
  • Punch Taverns Says FY Results In Line With Company Expectations
  • Dong 3Q Ebitda Beats Estimates; Plans to Sell Oil Unit
  • Securitas 3Q Ebita, Organic Growth Beat Estimates
  • Wallenstam 3Q Income, Profit Rises
  • Solvay Sees Profit Growth Picking Up in Final Quarter of Year
  • Henkel 3Q Adj. Operating Profit In Line, Confirms 2016 Guidance
  • ADP 9-Month Revenue Slips 0.5%; Repeats Outlook for FY Earnings
  • SoftBank’s Profit Tops Estimates as Sprint Gets on Track
  • VW Chairman Poetsch Engulfed in Diesel Crisis as Probe Widens
  • Financial News
  • Credit Agricole Profit Jumps on Trading, Pledges Stable Dividend
  • Direct Line 9M Gross Written Premiums from Operations Rise 4.2%
  • Sberbank Oct. Profit 53.1b Rubles Under Russian Standards
  • Rating News
  • Fitch Affirms New Zealand Covered Bond Ratings on New Criteria
  • Moody’s takes ratings actions on Hungarian banks after sovereign upgrade
  • Other News
  • Your Hour-by-Hour Guide to Following Obsessively on Election Day
  • Goldman Says Clinton Victory More Likely as Gold Holds Decline
ANALYST VIEWS
  • We are surprised that we have not yet felt a more aggressive tightening trend (from ECB CSPP), unless of course investors are “happy” to sell into the ECB’s bid, and then hoard their cash and rotate into primary, when they can: creditmarketdaily.com
NEW ISSUES
  • ICADE EU500m 9Y MS +82
  • Lloyds Banking Group EUR 5Y MS +80 and 7Y MS +90
  • 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)

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Hans Poetsch (Volkswagen AG)

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