EU CAPITAL GOODS: GE Aerospace (GE A3[P]/A-/NR1Q25 Results
Jun-05 12:08
Credit neutral. Supply expected.
- GE reported revenue in line with consensus. Orders and revenue were both up double digits. A small beat from the larger Commercial arm (services in particular) offset Defense & Propulsion.
- Adj. EBIT beat by 12% thanks to margin that was 250bp ahead, with high margin services volume contributing.
- Adj. FCF beat by 7%. It doesn’t plan any debt reduction and will refinance 25+ maturities. It has €773mn due May 25.
- FY25 guidance was maintained subject to no global recession. It plans to offset tariffs with optimisation, cost controls and pricing.
- Webcast replay https://edge.media-server.com/mmc/p/wrzsk7rm/.
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GILTS: Early Range In Futures Intact, Curve Twist Steepens
May-06 12:05
There was also a muted reaction in gilts to the latest round of EU-U.S. trade headlines, although fresh weakness in U.S. e-mini futures seems to lend some background support to gilts. Futures remain in the range establish in the first 30 minutes of trade.
- Initial support and resistance of note at 91.73 & 93.93, with this morning’s breach of the 50-DMA providing an extension of the recent bearish impulse in the contract, albeit with the bullish cycle in the contract intact.
- Yields 2bp lower to 3bp higher, curve twist steepens.
STIR: Repo Reference Rates
May-06 12:00
- Secured Overnight Financing Rate (SOFR): 4.33% (-0.03), volume: $2.632T
- Broad General Collateral Rate (BGCR): 4.31% (-0.02), volume: $1.072T
- Tri-Party General Collateral Rate (TCR): 4.31% (-0.02), volume: $1.026T
- (rate, volume levels reflect prior session
EGB SYNDICATION: Germany 2.90% Aug-56 Bund Tap: Priced
May-06 11:59
- Reoffer: 97.377 to yield 3.029%
- Size: E4.5bln inc E0.5bln retained by issuer (MNI expects E4-6bln)
- Books closed in excess of E47bln (inc E3.595bln JLM interest)
- Spread set earlier: 2.50% Aug-54 Bund + 2.5bp (mid) (guidance was +3.25bp area)
- HR: 109% vs 2.50% Aug-54 Bund (spot ref: 90.252 / 3.004%)
- Settlement: May 13, 2025 (T+5)
- ISIN: DE000BU2D012
- Bookrunners: Barclays, Citi (B&D), CA-CIB, DZ Bank, GS, JPM. Remaining members of the Bund Issues Auction Group will be invited into the co-lead group
- Timing: TOE: 12:48BST / 13:48CET. FTT immediately
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