EU CONSUMER CYCLICALS: Adidas; 1Q results
Apr-23 16:32
(A3 / A-; Stable)
Solid results continue in what is a remarkable turnaround from this co. It would be nice to see it bring supply.
• 1Q sales +13%, excluding Yeezy sales from last year (inventory now cleaned) +17%
• Gross margin +90bps at 52.1%
• EBIT margin +370bps at 9.9% or +82%yoy increase in absolute terms
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OPTIONS: Expiries for Mar25 NY cut 1000ET (Source DTCC)
Mar-24 16:32
- EUR/USD: $1.0850(E1.2bln), $1.0900(E1.2bln)
- GBP/USD: $1.2835(Gbp578mln)
- AUD/USD: $0.6255-65(A$674mln), $0.6350-60(A$1.1bln)
- USD/CAD: C$1.4550($631mln)
PIPELINE: Corporate Bond Update, $2.25B Verizon 10Y Launched
Mar-24 16:22
- Date $MM Issuer (Priced *, Launch #)
- 03/24 $2.25B #Verizon 10Y +95
- 03/24 $1b MuniFin WNG 5Y SOFR+49a
- 03/24 $500M #Marubeni 10Y +105
- 03/24 $500M SMBC Aviation Cap 5Y +130a
- 03/24 $500M Macquarie Airfinance 3Y +150a
- 03/24 $Benchmark T-Mobile 7Y +120a, 10Y +125a, 30Y +150a
- 03/24 $Benchmark Glencore 1.5Y SOFR+75, 3Y +90, 5Y +110, 10Y +135
- 03/24 $Benchmark RBC 3NC2 +87a, 3NC2 SOFR, 6NC2 +110a, 6NC2 SOFR
- 03/24 $Benchmark Hyundai Capital 2Y +110a, 2Y SOFR, 5Y +135a, 5Y SOFR, 7Y +145a
- 03/24 $Benchmark Korea National Oil 3Y +65a, 3Y SOFR+77a, 5Y +70a
- 03/24 $Benchmark KNOC 3Y +95a, 3Y SOFR, 5Y +100a
- 03/24 $Benchmark San Diego Gas & Electric 10Y +110
- 03/24 $Benchmark RELX Capital 5Y +95a, 10Y +120a
- 03/24 $Benchmark CIBC 4NC3 +110a, 4NC3 SOFR
- 03/24 $Benchmark Harbour Energy 10Y +200
- 03/24 $Benchmark Avalon Holdings 5Y +165a
- 03/24 $Benchmark Swiss Re 21NC20 +175a
- 03/24 $Benchmark NWB 3Y SOFR+38a
BOE: Bailey could possibly outline the MPC's new risk cases in more detail today
Mar-24 16:08
- Governor Bailey is due to deliver a speech on “growth in the UK economy”, with text due at 18:00GMT today and it would be very possible that he could set out the new risks cases for the MPC more granularly. As we noted in our BOE Review (see here), perhaps the most significant thing to come out of the March MPC meeting was the lack of any discussion over the three cases that have previously been the bedrock of MPC communication for the past few months. Instead, the MPC outlined the intention for how its guidance would evolve with two new risk cases.
- If Bailey does elaborate on these tonight, we would expect other MPC members to stick to this new script and to move away from the old case 1/2/3 rhetoric.
- This is far from certain, however, as there are many uncertainties ahead of the May MPR, and it might be a bit too early for the MPC to have really fully settled on where their new baseline forecast would be (and may prefer to wait until that is more certain before filling in the gaps any further). Indeed, ahead of the May MPC we will receive two more flash PMI prints, CPI data for both February and March (albeit PPI data has been postponed) and one more labour market report. In addition, the Chancellor’s Spring Statement will have been delivered and there may (possibly) be some more clarity on the global trade / tariff situation (albeit that may be wishful thinking on the latter!)
- We note that Governor Bailey introduced the three cases used up until now in his Jackson Hole speech on 23 August 2024, around three weeks after the August 2024 MPR was published. These cases then appeared in the September MPC Minutes before being fully fleshed out in the November 2024 MPR. However, before November we had MPC members referencing the three case scenario in their speeches and public comments.
- Here is the text from the MPC Minutes regarding the new risk cases:
- “Ahead of the May Report, the Committee was likely to consider scenarios for the risks around medium-term inflation, building on its recent deliberations. The MPC was currently focused on two particular risks. First, the extent to which there could be greater or longer-lasting weakness in demand relative to supply in the economy, in part reflecting uncertainties globally and domestically, which could push down on inflationary pressures in the medium term. Second, the extent to which there could be more persistence in domestic wage and prices, both from more constrained supply relative to demand and from additional second-round effects related to the projected near-term increase in CPI inflation. The MPC would review the evidence on the impact and likelihood of these broad risks as a part of its May policy round, alongside its baseline forecast.”
