HEALTHCARE: Bayer (BAYNGR: Baa2 neg/BBB/BBB):  Cash Call

Peter Navarro, the White House senior counselor for trade and manufacturing; one of US President Donald Trump's most important advisors, has proposed expelling Canada from the Five Eyes intelligence sharing alliance, according to FT. The group, which includes the UK, Australia, and New Zealand, is considered a foundational security alliance of the member nations, with nearly all intelligence shared mutually within the group. 

• FT suggests that the comment could be designed to pile more pressure on Ottawa to extract concession as the March 4 deadline for a 25% tariff on Canadian imports approaches.
• Trump said yesterday: “We're on time with the tariffs and it seems like that's moving along very rapidly... So, the tariffs will go forward, yes, and we're going to make up a lot of territory…”
• Bloomberg reported: “…following [Trump's] remarks, a US official... said the fate of the special 25% levy on Canada and Mexico — tied to border security demands — was still to be determined."
• The threat comes amid a major shake-up of the postwar Western alliances, with the presumptive next Chancellor of Germany, Friedrich Merz, suggesting that the US could be cut out of NATO: "I never thought I would have to say something like this on a television program. But after Donald Trump’s statements last week at the latest, it is clear ....this administration, [is] largely indifferent to the fate of Europe.”
• ABC reports that Trump's approach to foreign policy has prompted concerns in Australia that both FVEY and AUKUS could collapse amid an isolationist pivot from Washington.  

• Reoffer price 99.824 to yield 3.515%
• Spread set earlier at 3.90% Jul-39 Obli (mid) + 9bps (Guidance was +11bps area)
• Size: E7bln (MNI expected E5-10bln)
• Books closed in excess of E93bln (inc. E7.5bln JLM interest)
• Maturity: 31 January 2041
• Coupon: 3.50%. Short first to 31 January 2026
• Settlement: 4 March-2025 (T+5)
• ISIN: ES0000012O75
• Bookrunners: BARCLAYS / CACIB (B&D/DM) / GSBE SE / HSBC / NOMURA / SG
• Timing: FTT Immediately

From market source / BBG

The DMO has announced it will be looking to sell GBP2.25bln of the 4.375% Jul-54 Gilt (ISIN: GB00BPSNBB36) at its auction next Tuesday, March 4.