EU ENERGY SECTOR: Exxon Mobil: BP Bid Speculation
Aug-15 15:40
(XOM ; Aa2/AA-/NR)
Note that BP has been mentioned in numerous Betaville reports that have come to nothing and have done little to move spreads meaningfully.
- We presume the report refers to Exxon. This combo has been mentioned in the past.
- Any such deal would presumably be all or mostly equity financed.
- If 100% equity-financed we roughly calc a 0.6/0.3x gross/net adj-lev impact.
- If 30% financed with debt, we see roughly a 0.9/0.6x impact.
- Excludes synergies, asset sales and would be weighed against the positives of the deal.
- Quick scan of EUR BP bonds doesn’t show CoC language though XOM is higher-rated anyway.
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US STOCKS: Midday Equities Roundup: Reverse Early Gains on Chair Powell Chatter
Jul-16 15:39
- Stocks have retreated from modest early Wednesday session gains, the timing of the reversal coinciding with headlines that Pres Trump likely to fire Fed Chairman Powell soon, citing a White House official that added there was "no exact timeline" for any decision to act.
- The Fed statute authorizes the president to remove Fed governors for cause, but there's no case law in what would constitute cause, Lev Menand, an ex-senior Treasury adviser who specializes in legal matters around central banking at Columbia Law School, told MNI in April.
- The basis for "cause" my be tied to accusations of cost overruns on the renovation of the Fed building in DC.
- Currently, the DJIA trades down 264.27 points (-0.6%) at 43765.43, S&P E-Minis down 41.75 points (-0.66%) at 6242.25, the Nasdaq down 170 points (-0.8%) at 20510.2.
- A mix of Energy, Tech and Financials stocks led the late morning sale: Vistra Corp -4.05%, Applied Materials -4.01%, Teradyne Inc -3.92%, Micron Technology -3.51%, Constellation Energy -3.47% and Morgan Stanley -3.59%.
- Earnings expected after the close: Rexford Industrial Realty, Alcoa Corp, United Airlines Holdings Inc and Kinder Morgan Inc.
CANADA CONTRIBUTING CAD1B TO STEEL INNOVATION FUND
Jul-16 15:37
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- CANADA SETS 100% TARIFF QUOTA ON NON-US FREE TRADE-DEAL COUNTRIES
- CANADA PM CARNEY SAYS MEASURES PROTECT AGAINST TRADE DIVERSION
EU-RUSSIA: EU Diplos Fail Once Again To Approve 18th Sanctions Package
Jul-16 15:37
Reuters reports that, according to EU diplomats, the Union has once again failed to approve the 18th package of sanctions on Russia. EU ambassadors met for a Coreper II meeting in Brussels today after EU foreign ministers failed to reach a unanimous consensus yesterday, with Slovakia again the obstacle. The gov't of PM Robert Fico has held up the sanctions over another issue, the EU's planned phase-out of Russian fossil fuels.
- On 15 July, Fico stated that EU assurances on ensuring a sufficient supply of hydrocarbons despite the phase out were "insufficient", risking a major escalation in tensions between Brussels and Bratislava. The phase out only needs a qualified majority, meaning Slovakia cannot block it. However, sanctions need unanimous approval, resulting in Slovakia holding up the package until its demands on the phase out are met.
