Halister News

(Bloomberg) -- Deutsche Bank, back in the spotlight amid ongoing attempts to improve its capital buffers and investor confidence, may weigh on risk-asset sentiment Wednesday along with corporate earnings and macro outlook concerns, Bloomberg strategist Simon Ballard writes.

• Still, cash corporate bonds remain resilient, underpinned by low global rates and central banks’ QE backstop bids
• U.S. election in less than 2 weeks may now be major driver of relative U.S. corporate sector allocation and spread performance
  • Clinton win could prove negative for healthcare, pharmaceutical pricing power; Trump seen as more anti- litigation, pro-business, oil, tobacco

• Risk Appetite Model grinding back toward year-to-date lows
• Bloomberg Barclays Eur-Agg Corporate index closed yesterday at 110bps (flat); Bloomberg Barclays Eur HY index closed at 370bps (+3bp)
• CDX IG closed +0.5bps at 74.32; iTraxx Asia Ex Japan IG is currently -0.3bps at 114.74 and iTraxx Australia quoted +0.3bps at 102.33

NEWS

• Corporate News
• Heineken 3Q Organic Consolidated Beer Volume Beats Estimates
• Airbus 3Q Profit Misses Estimate; FY Forecast Confirmed
• Peugeot 3Q Revenue Misses Estimate; Forecast Confirmed
• Telefonica Deutschland 3Q Revenue Tops, Net Loss Exceeds Ests.
• Bayer 3Q Ebitda Ex-Items Beats Ests.; Raises 2016 Core EPS Goal
• Telenor Posts 3Q Loss of NOK4.8b After Indian License Impairment
• Hyundai Motor 3Q Oper. Profit 1.07t Won; Est. 1.22t won
• Iberdrola 9M Adj. Net EU2.04b; Est. EU2b
• Canon Cuts Forecasts Below Consensus After 3Q Profit Miss
• Ballard 3Q Adj Loss/Shr 2c, Est. Loss 3c

• Financial News
• Lloyds 3Q Underlying Pretax Misses; Takes GBP1b PPI Charge
• Storebrand 3Q Profit Beats; Solvency Margin Drops Vs 2Q
• Santander 3Q Net Beats Estimate; CET1 Fully Loaded 10.47%
• Metro Bank Swings to 3Q Pretax Profit Q/q, Customer Accounts Up
• Nordea Profit Rose 14% Last Quarter as Bank Beat Estimates
• Bankia 3Q Net Beats Estimate; CET1 Fully-Loaded 13.24%
• Morelli Says (BMPS) Seeing Interest From Cornerstone, Anchor Investors

• Rating News
• European Steelmakers’ Outlook Negative on Cheap Imports: Moody’s
• S&PGR Affirms Western Australia ’AA+/A-1+’ Rtgs; Otlk Negative

• Other News
• Gundlach Says TIPS ‘for Winners’ Amid Signs Inflation Reviving
• With Economy Stable, China Steps Up Quest to Rein in Credit Risk
• ‘Tough’ Earnings Season Looming for Australian Banking Giants

ANALYST VIEWS

• Moody’s Sees Rosier Outlook for European Carriers as Prices Rise
• China Hard Landing Risks Recede, Yuan to Float Downward: Fitch
• Finally, the natives will be happy as they were getting a little restless -- especially at the lack of non-financial supply. Draghi will look at it and perhaps feel vindicated that issuance is up because of the ECB’s (CSPP) -- it isn’t: creditmarketdaily.com

NEW ISSUES

• Danone EU6.2b 5-tranche deal; EU1.35b 2Y FRN at 3mE +15, EU1b 4Y bonds at MS +28, EU1b 6Y bonds at MS +40, EU1.25b 8Y bonds at MS +50, EU1.6b 12Y bonds at MS +65
• Banco de Credito Social Cooperativo EU100m 10NC5 Tier 2 notes at 9% (MS +905)
• Banque Federative du Credit Mutuel EU700m 10Y Tier 2 notes MS +155
• DG Hyp EU500m 12/2024 covered bonds at MS -14
• Merlin Properties EU800m 10Y bonds at MS +160
• Sekerbank USD 10NC5 Tier 2 bonds to yield 10%
• Erste Abwicklungsanstalt $1.25b 3Y Reg S bonds at MS +30
• Kommunekredit EU500m 20Y bonds at MS +13
• Nordic Investment Bank GBP250m 5Y bonds at UKT +24
• Republic of Austria EU5b 2-tranche deal; EU3bb 7Y bonds at MS -28, EU2b 70Y bonds at RAGB 2047 +53
• United Kingdom tapped UKT 2.50% 7/2065 by GBP4b at UKT 3.50% 2068 flat
• United Mexican States EU1.90b 2-part transaction; EU1.2b 1/2025 bonds at MS +125, MEX 3.375% 2/2031 EU700m Tap at 2.20%
• 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.