NORWAY: Gov't To Boost Defence Spending To Strengthen Forces Near Russian Border
Mar-18 11:43
Norwegian Defence Minister Odd Roger Enoksen has confirmed that the gov't in Oslo will boost military spending by NOK3bn (EUR308mn) in 2022 in order to boost the country's military defences along the Norwegian-Russian border in the far north of the country.
- Enoksen: "Even if a Russian attack on Norway is not likely, we must realise that we have a neighbour to the east that has become more dangerous and more unpredictable".
- Norway has the second-highest defence spending per capita in NATO at USD1,312 per person in 2020, below only the US on USD2,351 and ahead of the UK in third place at USD873/person.
- At present, the extent of fortifications or defences along the border are fences and checkpoints intended to stem the flow of migrants that escalated in 2016. There is little in the way of military infrastructure.
Map of Norwegian-Russian Border
Soruce: BBC
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PIPELINE: Mizuho, KDB, Rep of Turkey US$ Issuers on Tap
Feb-16 11:42
Decent midweek issuance after $11B total priced Tuesday, Bristol-Myers lead
- Date $MM Issuer (Priced *, Launch #)
- 02/16 $Benchmark Mizuho 4.25NC3.25 +105a, 4.25NC3.25 FRN/SOFR, 8.25NC7.25 +135a, 20.25Y +140a
- 02/16 $Benchmark KDB 3Y +60a, 5Y +70a, 10Y +90a
- 02/16 $Benchmark Rep of Turkey 5Y Sukuk 7.5%a
- $11B Priced Tuesday
- 02/15 $6B *Bristol-Myers $1.75B 10Y +95, $1.25B 20Y +115, $2B 30Y +135, $1B 40Y +155
- 02/15 $1.5B *Enbridge $400M 2Y +63, $600M 2Y FRN/SOFR+63, $500M 3Y +73
- 02/15 $1B *Norfolk Southern $600M 10Y +95, $400M 31Y +135
- 02/15 $1B *FactSet WNG $500M 5Y +100, $500M 10Y +145
- 02/15 $600M *Kimco 10Y +125
- 02/15 $500M *Israel Electric Corp WNG 10Y +175
- 02/15 $400M *Kemper 10Y +180
CROSS ASSET: Price Signal Summary - Equities Remain Vulnerable Despite Bounce
Feb-16 11:37
- In the equity space, S&P E-minis remains vulnerable despite Tuesday’s gains. The contract recently failed to hold above the 50-day EMA - at 4549.15. This average represents a firm resistance and a clear break would suggest scope for a stronger rally towards 4671.75 initially, Jan 18 high. EUROSTOXX 50 futures remain vulnerable. Last week, the contract failed to hold above the 50-day EMA - at 4188.70. This average still represents a key resistance point where a clear break would suggest scope for a stronger recovery and open 4324.50, Jan 13 high.
- In FX, EURUSD is recovering for a second session, narrowing the gap with next resistance at the Feb11 high of 1.1401. EURJPY has extended the bounce off recent lows, chewing further through the downtick posted on Friday. The bull trigger remains at 133.15, Feb 10 high, meaning rallies will target this level before shifting sights to 133.48 and above.
- The Gold rally paused Tuesday, with prices drifting. Nonetheless, the recent clearance of resistance at $1853.9, the Jan 25 high reinforces the underlying bullish condition. The recent rally in WTI futures petered out on Tuesday. Nonetheless, the recent break higher resumed the bullish price sequence of higher highs and higher lows. Note too that corrections remain shallow and this both highlights and reinforces underlying bullish sentiment.
- Bund futures are trading near its recent lows and remain in a clear downtrend. Moving average conditions are in a bear mode set-up too, highlighting current sentiment. The focus is on the 164.00 handle next. The trend condition in Gilt futures is unchanged and remains bearish. With the 120.00 psychological handle cleared, the focus is on 119.28 next, a Fibonacci projection.
BOND SUMMARY: EGB/Gilt: Broad Gains
Feb-16 11:35
European government bonds have traded firmer this morning while equities are close to flat on the day.
- Despite potential signs of a marginal de-escalation in the Ukraine crisis yesterday, indications that Russian troop levels could be rising on the border reflect the still heightened degree of uncertainty over the direction of the conflict.
- UK inflation came in above expectations for January (5.5% Y/Y vs 5.4% survey).
- The gilt curve has twist steepened. Yields at the shorter end are 4-5bp lower on the day, while pushing up 2bp at the longer end. The 2s30s spread is 7bp wider.
- Bunds started the session on a weak footing before making gains through the morning and now trading marginally above yesterday's close.
- OATs have performed in a similar fashion with the curve 1bp steeper.
- BTPs recovered earlier losses to now trade close to flat on the day.
- Supply this morning came from Germany (Bund, EUR3.273bn allotted), Portugal (BTs, EUR1.25bn) and the Eurozone (EU Bills, EUR1.991bn). In addition, syndicated auctions were held for the ESM (0% Dec-26, books last seen above EUR37bn) and Slovenia (2.25% Mar-32 SLOREP tap, books above EUR900mn & 0.4875% Oct-50 SLOREP, books above EUR1.1bn).
- Italy bought back a combined EUR2.231bn of BTP/CTZ/CCTeu.
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