EU HEALTHCARE: HEALTHCARE: Grifols: Moody's Reviewing For Downgrade, Equity Watchers Upgrading Profit Forecasts
Mar-06 08:47
Grifols (GRF SM) being reviewed for downgrade by Moody's on “weaker FCF generation and approaching debt maturities”. Estimates are up marginally since results, highlighting the tardiness of this call but clearly unhelpful for spreads now.
- Hardly a surprise after recent short-selling raid by Gotham but we'd note headlines results (on 29-Feb) were inline with expectations and both EPS and revenue estimates from the sell-side have been upgraded marginally since results were published.
- Mgmt were, as a reminder, confident on the call around the key S-RAAS divestment indicating due diligence was complete and we are just awaiting regulatory approval.
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GILTS: Domestic & Macro Matters Weigh
Feb-05 08:44
The combination of wider macro inputs flagged elsewhere (Fed Chair Powell’s weekend interview and a hawkish BoJ sources piece from the FT) and domestic matters (the previously covered expectations of firms re: price rises stemming from energy costs & an ONS update pointing to a slightly tighter than previously envisaged labour market) apply pressure to gilt futures early today.
- That pushes the contract as low as 98.23 before a modest uptick to the 98.30 zone. The contract is through last week’s low.
- Support comes in at the Jan 16 low (98.16), which protects the bear trigger (97.57).
- Cash gilt yields are 4.5-6.5bp higher, with a light bear flattening of the curve.
- SONIA futures are flat to 9.0bp lower on the day, with the late whites and reds under the most pressure.
- BoE-dated OIS continues to pull cuts out of ’24 pricing, now showing ~84bp of easing over that horizon.
- Final services and composite PMIs provide the domestic data highlights during the remainder of the session, while another round of comments from BoE chief economist Pill are due to cross.
- Elsewhere, medium-term bucket gilt sales from the BoE’s APF will be seen later today.
SONIA: Sonia put condor
Feb-05 08:43
SFIK4 94.90/94.80/94.70/94.60p condor bought for 1.75 in 8.8k
USD: USDJPY finds some demand
Feb-05 08:37
- Very limited move so far in USDJPY, but worth keeping an eye on the pair, as Treasury futures extend lower (higher Yields).
- Resistance is at 148.82, today's high for the USDJPY, which is also the highest print since 27th November.
