TECHNOLOGY: IBM Q125 Results
Apr-24 09:55
IBM A3[P]/A-/A-
Looks like a beat on Q1 numbers and Q2 guidance with FY guidance affirmed. Equity is still indicating lower, possibly on a worse outlook for the consulting biz (lower budgets and federal contract reductions) and a 0.8pp organic miss on growth-driver SW (though other segments were ahead).
- Q1 revs $14.5bn (+2% cFX, 0.2pp beat) w/ Consulting +0.5%, SW +9%, Infra -4.3%
- Q1 EBITDA $3.4bn (+12% YoY), Q1 CFO $2.3bn (flat), Q1 FCF $2bn (+$0.1bn).
- Total debt $63.3bn vs. $55bn at Q4 (Hashicorp deal). C&CE $17.6bn from $14.8bn.
- FY guidance affirmed. Q2 revs seen $16.4-16.75bn (BBG cons; $16.45bn).
- “Goods imported to the U.S. represent less than 5% of our overall spend, and under current U.S. tariff policy, the impact to IBM is minimal. While we have limited direct exposure outside the United States, we are tactically evaluating alternative sources and other strategy to mitigate tariffs.”
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EGB SYNDICATION: France: 0.95% Jul-43 OATei tap: Spread set
Mar-25 09:46
- Spread set: 1.80% OATei RY +10bps (Guidance was + 12bps area)
- Size: EUR Benchmark (MNI expects E3-4bln)
- Books in excess of E37bln (inc E2.8bln JLM interest)
- Settlement: 1 April 2025 (T+5)
- ISIN: FR001400QCA1
- Bookrunners: BNPP / CITI(B&D and DM) / CACIB / JPM / MS / SG
- Timing: Books to close at 10:15GMT / 11:15CET, allocations and pricing later today
From market source / MNI colour
EQUITIES: Large EU Bank put spread
Mar-25 09:44
SX7E 155/150ps, bought for 0.30 in 20k.
EGBS: Bund Weakness Extends; Issuance and Equity Uptick Weighing
Mar-25 09:39
Bund futures have narrowed the gap to initial support at 127.88, with no discernible headline trigger noted for the latest round of weakness. Impending Bobl supply alongside heavy corporate issuance will likely be weighing on EGBs this morning, alongside a recovery in European equity futures. Bunds are -32 ticks at 127.95 at typing.
- The German curve has bear steepened, with 2-year yields up 2.5bps and 30-year yields 4bps higher.
- The March German IFO survey provided a more positive outlook than yesterday’s PMIs, with the expectations component stronger-than-expected at 87.7 (vs 87.3 cons, 85.6 prior).
- The Bund-led nature of the selloff sees 10-year EGB spreads biased tighter. 10-year DSL supply was digested smoothly.
- ECB’s Kazimir and Muller did not deviate materially from past remarks, the latter adopting a hawkish tone around the case for future rate cuts.
- ECB’s Holzmann, Vujcic and Nagel are scheduled to speak later today.
