EU CONSUMER STAPLES: Essity: 3Q Results

The Richmond Fed's Fifth District surveys of regional manufacturing and services firms for September showed that a nascent pickup in activity in August may have been an outlier. The headline aggregate indices as well as key sub-components weakened, though were roughly in line with averages seen over the last year. 

• The manufacturing survey showed a sharp retrenchment to -17 in September from -7 prior, for the 2nd weakest headline figure since September 2024 and a full reversion of the surprise improvement in August. This was far worse than the expected improvement to -5 (Bloomberg consensus).
• The internals of the report were weak: all three of the composite sub-indices pulled back, including shipments (−20 from −5), new orders (−15 from −6), and employment (−15 from −11). In a rare bright spot, expectations improved to -1 from -10.
• The  Services business activity index reverted to -7 in September after an improvement to 6 in August. Similarly the 6-month outlook fell to a 3-month low -2 from 11 prior.
• As with manufacturing, current measures were weak (revenues down to 1 from 4, demand down to 3 from 13), though employment remained steady.

DUZ5 107.00/107.30cs 1x2, sold at 4 and 3.75 in 5k.

• Reoffer: 99.391 to yield 2.961%
• More to follow
• Spread: MS+37bps (guidance was MS+39bps area)
• Issue size: E3.5bln (a little higher than the E3bln MNI expected)
• Books closed in excess of E46bln (in E1.85bln JLM interest)
• HR 100% vs 2.60% Aug-33 Bund. Ref: 100.10 / +37.6bp
• Maturity: 14 October 2033
• Coupon: 2.875%, Long First
• ISIN: PTOTEQOE0023
• Timing: TOE 14:41BST / 15:41CET. FTT immediately

• Reoffer: 92.929 to yield 4.045%
• More to follow
• Issue size: E1.5bln (the middle of the E1-2bln range MNI expected)
• Books closed in excess of E35bln (in E875mln JLM interest)
• HR 97% vs 2.50% Aug-54 Bund. Ref: 84.76 / +71.6bp
• Spread: MS+110bps (guidance was MS+112bps area)
• ISIN: PTOTE3OE0025
• Timing: TOE 14:42BST / 15:42CET. FTT immediately

• Settlement: 30-September-2025 (T+5)
• Bookrunners: Barclays(B&D/DM)/BNPP/CAIXABI/CITI/CACIB/JPM