by Jeremy Spain
It has been a somewhat negative trading session for European credit
and equity markets this morning, stocks are lower across the board,
weighed down by the basic materials sector after the surprise rate
increase by the Reserve Bank of India overnight. The move has raised
fears that other Asian central banks may follow suit, in particular
China. CDS indices are all wider, with the benchmark, iTraxx Xover index
currently around 15 bps wider at the 468 bps level.
Another factor weighing on sentiment is the fact that Greek
government spreads over 10 year bunds are currently around 31 bps wider
at the 340 bps level, which has seen spreads for the other peripheral
countries in the eurozone edge moderately wider. As a result of the
downbeat newsflow in Asia and Europe, US CDS spreads are likely to open
on the back foot today, with futures currently pointing to a negative
open for US stocks this morning.
________________________________________________________________________
CORPORATE HEADLINES
FINANCIALS
-- HSBC is expanding in big cities, as it veers away from its riskier
subprime model and instead focuses on a more affluent,
internationally connected consumer - WSJ.
-- The leader of the U.K.'s opposition Conservative Party, David
Cameron, pledged to introduce a levy on banks if his party wins the
coming election, regardless of whether there is international
agreement on such a move - WSJ.
AUTOS
-- The CEO of Volvo has said there are "many interested" bidders for
Renault's stake in the company should it choose to sell it - FAZ.
TMT
-- EMI could allow others to sell, distribute its catalog to raise funds
and prevent a takeover by its lender - WSJ.
UTILITIES/ENERGY
-- Royal Dutch Shell announced a "significant new" oil find in the Gulf
of Mexico - FT.
-- Royal Dutch Shell and PetroChina today secured a board recommendation
from Arrow Energy after lifting their joint takeover bid for the
Australain energy producer - FT.
BASIC MATERIALS
-- Rio Tinto and Chinalco confirmed a link-up to develop iron ore in
Guinea - FT.
CONSUMERS
-- British Airways cabin crews walked off the job for a second day
Sunday, as the union representing them called on management to
reopen talks and avoid another strike next weekend - WSJ.
-- SABMiller and its Chinese partner will pursue acquisitions and
increase production capacity to boost growth in the world's most
populous nation - FT.
SOVEREIGN
-- Fierce German resistance to helping Greece has emerged in an FT
opinion poll that strengthens Angela Merkel's hand ahead of a
possible European showdown this week over financial aid for Athens -
FT.
-- Dubai World, the troubled Gulf investment fund, is to ask its
creditors for up to 8 more years to pay back a $22 billion debt
mountain, The Sunday Times reported. The crisis-hit investment
empire, owned by the Dubai state, will promise its lenders it will be
able to pay back all the money it owes if it can get the extension.
The debt restructuring proposals will be put to a seven-strong
committee of the group's senior creditors in Dubai this week.
OTHERS
-- Dividend pay-outs by UK companies are set to jump sharply this year
- FT.
________________________________________________________________________
US CORP/AGENCY/$EURO NEW ISSUES - MARCH 22, 2010 07:33 EDT / Mar 22
(#) Launched or (*) Priced (Investment Grade $250M+) (e) Estimate
========DEALS TO ANNOUNCE OR PRICE WEEK OF MARCH 22, 2010=======
$2.75B Consol Energy(CNX) Ba1/BBB 144A/RegS Sen 7Y & 10Y
$Bnchmk Woori Bank(WOORIB) A2/A- Global (5Y expected) BAML/CA/DB/JPM/MS
$1B Kingdom of Bahrain(BHRAIN) A(S&P) 144A/RegS 10Y? BNP/DB/JPM
Roadshows March 17-23
$Note AT&T(T) A2/A Files Shelf - Has $3 billion maturing in April
$44B Treasury 2Y - Auction Tuesday
$42B Treasury 5Y - Auction Wednesday
$32B Treasury 7Y - Auction Thursday
$3B(e) Freddie Mac Reference Note - Thursday for Friday
$2B State of California Baa1/A- Taxable GOs (BABs??) In Week BAML
$555M Oregon Dept of Transportation Taxable Revs - BABs In Week Citi
$550M Chicago Transit Authority A1/AA Taxable Revs BABs In Week GS
======DEALS IN THE PIPELINE - EXPECTED/SUSPECTED/POSSIBLE===============
$Bnchmk Rep of Poland(POLAND) A2/A- Talk of 5Y $Issuance
Note: Emirates NBD Global Funding A2 Sen unsec $7.5B MTN program -
To replace Nat Bk Dubai and Emirates Bk International
Note: CSX Corp(CSX) Baa3/BBB- $650M 144A Senior 6.22% 2040 expected
$Bnchmk Hyundai Motors(HYNMTR) Baa3/? Global 5Y BAML/Barc/C
$500M Korea Hydro & Nuc(KOHNPW) A2/A+ 5Y Timing? BAML/C/DB
$Note Amazon.com(AMZN) Baa3/BBB - CreditWatch Positive at S&P
Not seen since 1999 / No issues outstanding
$Bnchmk Fed Rep Germany(GERMAN) AAA Expected issuance in 2010
$Bnchmk Rep of Austria(AUST) Aaa/AAA - Expected
________________________________________________________________________
MACRO EVENT RISK AND SPEAKERS
US data starts at 1330GMT with the weekly MNI Capital Goods Index, which
is followed at 1430GMT by the weekly MNI Retail Trade Index.
Also at 1430GMT, Eurogroup President Jean-Claude Juncker speaks at
European Parliament.
At 1500GMT, EMU Mar consumer confidence is expected to improve
slightly, to a reading of -17.0.
At 1530GMT, ECB President Jean-Claude Trichet gives an introductory
statement at the quarterly hearing before the Committee on Economic and
Monetary Affairs of the European Parliament, in Brussels.
At 1645GMT, ECB Executive Board member Jose Manuel Gonzalez-Paramo is
due to speak at the USA-European Union Forum: 'Looking towards the
future', in New York.
In the US,, at 1945GMT, Atlanta Fed President Dennis Lockhart delivers a
speech on the economic outlook at the Naples Council on World Affairs.
He will repeat that speech at 2300GMT.
Finally, at 2045GMT, Treasury Secretary Tim Geithner speaks at the
American Enterprise Institute on the subject of financial regulatory
reform.