EU HEALTHCARE: Essilor Luxottica (EFFP: A2 pos/A): Results Preview
Feb-12 10:20
Equity is up 34% since Moody's placed them on Positive in September and up 17% YTD
- Tie-Up with META for smart glasses seen as opening a new field of consumer wearable tech to rival earbuds, etc
- EFFP's curve shows a clear example of the CSPP-effect with EFFP 3% 32 trading 16bps wide to the EFFP 0.75 31. Further compounded by the fact that the 31s were a 12yr at launch so would have suited a lot of Insurers vs an 8yr recent deal for the 32s.
- EFFP curve is inside AZN, GSK, MRK but doesn't have the patent cliff issues of Pharma.
- Moody's will upgrade if Adj NetDebt/EBITDA remains around 2.0x; RCF/NetDebt above 35%; Margin improves in line with company guidance from 16.5% to 19-20% this won't happen imminently but with equities clearly bullish we would expect A1 before too long
- Company acquired a Canadian start-up Cellview recently, no terms disclosed. Presumably a small outlay but further deepens expertise in diagnostic capabilities.
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ITALY AUCTION RESULTS: 3/7-year BTPs
Jan-13 10:13
| 2.70% Oct-27 BTP | 3.15% Nov-31 BTP | |
| ISIN | IT0005622128 | IT0005619546 |
| Amount | E2.75bln | E3bln |
| Previous | E3bln | E3bln |
| Avg yield | 2.85% | 3.49% |
| Previous | 2.35% | 2.92% |
| Bid-to-cover | 1.65x | 1.63x |
| Previous | 1.66x | 1.58x |
| Avg Price | 99.67 | 98.10 |
| Pre-auction mid | 99.641 | 98.016 |
| Prev avg price | 100.98 | 101.54 |
| Prev mid-price | 100.937 | 101.524 |
| Previous date | 12-Dec-24 | 12-Dec-24 |
EURIBOR: EURIBOR FIX - 13/01/25
Jan-13 10:07
EURIBOR FIX - EMMI/Bloomberg
- 1W 2.91500 -1
- 1M 2.85000 1.1
- 3M 2.78500 1.9
- 6M 2.65500 1.4
- 12M 2.57600 1.2
FOREX: EUR & GBP Extend Declines, Weak Risk Sentiment Weighs on Cross/JPY
Jan-13 10:03
- The continued post-NFP themes of a weaker Euro and Pound have continued early Monday, with downside momentum picking up in recent trade. Weak risk sentiment continues to boost the Japanese yen, prompting some significant declines for cross/JPY to start the week.
- EURUSD has traded below the 1.02 handle, registering fresh cycle lows for the pair at 1.0178. With the bearish trend sequence intact, analysts will now look to 1.0138, the 1.764 projection of the Sep 25 - Oct 23 - Nov 5 price swing as the next target for the move.
- With higher European NatGas prices providing additional single currency headwinds to the aforementioned equity weakness, EURJPY is now down 0.95% on the session and is approaching the 160.00 mark.
- For sterling, 1.2100 has so far held for cable, however the pair is down 0.85% as the negative backdrop for UK assets continues to permeate. We highlighted last week how 190.60 was the first major target for the move in GBPJPY (shown below), a trendline drawn from the Aug low. This trendline has now given way, with the pullback from the Dec 30 highs extending to 4.5%. Given this development, 188.09 will now be in focus, the Dec 03 low.
