EU HEALTHCARE: Bayer (BAYNGR: Baa2 neg/BBB/BBB) Texas Two-Step
WSJ reports that Bayer is investigating placing Monsanto into Bankruptcy to resolve glyphosate claims.
• This would use a similar process as J&J and 3M to shield the rest of the company from any further payouts. A legal process known as the Texas Two-Step.
• We do not know how much the company would need to add to the settlement amount or if plaintiffs would accept.
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EQUITIES: Immediate focus on the Tech sector on the Open
Immediate Focus on the Tech sector on the EU open, following Trump barring NVIDIA from selling its H20 chip to China.
Luxury is also a sector that will be Watched, but that one Going Forward.
US Nasdaq was down some 2.3% earlier, now 1.97%.
- Calls: Estox 50: -0.88%, Dax: -0.39%, CAC: -0.90%, FTSE -0.23%, SMI -0.13%.
SCHATZ: Block trade
Schatz Block trade, suggest buyer:
- DUM5 ~4.1k at 107.52.
STIR: Over 85bp Of BoE Cuts Priced Through Year-End After Soft CPI
Dovish repricing in GBP STIRs following softer-than-expected CPI data and the latest round of trade war worry (both detailed elsewhere).
- BoE-dated OIS contracts covering ’25 meetings are 2.5-4.0bp more dovish than closing levels, showing 25.5bp of easing for May, 34.5bp through June, 54.5bp through August and 85.5bp through year-end. Last week’s dovish extremes (which saw ~93bp of cuts priced through year-end at one point) remain untested,
- We still, look for a cut in May, with this morning’s data providing no impediment to such a move, although the scope of the downside surprise wasn’t large enough (headline CPI met the median of the sell-side views that we read) to trigger a more forceful/expedited round of easing, at least not in isolation.
- SONIA futures are 1.0-5.5 higher, last week’s highs are unchallenged across the strip.
- Eyes on macro/cross-market cues for the remainder of the day, with comments from Fed Chair Powell & U.S. retail sales data headlining the calendar.
BoE Meeting | SONIA BoE-Dated OIS (%) | Difference vs. Current Effective SONIA Rate (bp) |
May-25 | 4.204 | -25.4 |
Jun-25 | 4.111 | -34.7 |
Aug-25 | 3.915 | -54.3 |
Sep-25 | 3.803 | -65.5 |
Nov-25 | 3.657 | -80.2 |
Dec-25 | 3.603 | -85.5 |
