EU CONSUMER STAPLES: Carlsberg; FINAL
Feb-19 13:38
Pricing in-line with expectations. The £ books are firm and has taken it quiet flat to MCD. We do see value in rolling into consumer-health co Haleon 38s (UKT+66).
Total €4.6b;
- €850m 2y FRN 3m+40
- -25 from IPT, books >€2.9b
- €1b 4.5y +70 vs. FV +67 (+3 NIC)
- -30, books >€4b
- €1b 7y +88 vs. FV+87 (+1 NIC)
- -32, books >€4.4b
- €1.15b 10y +108 vs. FV+110 (-2 through)
- -32, books >€4.9b
- £500m 14y UKT+78 vs. FV +82 (-4 through)
- -27, books >£3.1b
- UKT here is Jan-39s at 4.85%. 14y swap spreads are -60bps, FV over swap is +142
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BONDS: Rallies A Little As Reports Play Down Odds Of Immediate Trump Tarrifs
Jan-20 13:37
Modest bid in core global FI on the back of a WSJ piece suggesting that "President-elect Donald Trump is planning to issue a broad memorandum Monday that directs federal agencies to study trade policies and evaluate U.S. trade relationships with China and America’s continental neighbors—but stops short of imposing new tariffs on his first day in office, as many trading partners feared."
- The reaction presumably comes as the delay to any fresh U.S. tariffs presents less inflationary risk for markets.
- The bid in equities and weakness in the USD is more prominent from a cross-market perspective.
CANADA: USDCAD Clears First Support On WSJ Story Downplaying Immediate Tariffs
Jan-20 13:37
- USDCAD initially slumped 140 pips on that WSJ story re no new tariffs yet.
- Hitting a low of 1.4323 (latest 1.4370 in fast trading), it pierced support at 1.4364 (20-day EMA) and stopped short of 1.4302 (Jan 15 low).
- CAD still lags some high beta peers on the day though, gaining 0.9% to the USD on the day vs 1.2% for NZD and SEK.
GLOBAL: WSJ Report on No Imminent New Tariffs Sparks Positive Market Reaction
Jan-20 13:37
- "*Trump to Lay Out Trade Vision but Won't Impose New Tariffs Yet -- WSJ"
- "President-elect Donald Trump is planning to issue a broad memorandum Monday that directs federal agencies to study trade policies and evaluate U.S. trade relationships with China and America's continental neighbors -- but stops short of imposing new tariffs on his first day in office, as many trading partners feared."
- Seeing some strong moves on the reports suggesting the imposition of new tariffs will not be imminent, with the greenback under significant pressure and equity benchmarks rallying.
