EU REAL ESTATE: Kojamo: Debt Reduction (VVOYHT; Baa2 neg/NR/NR)
Jul-31 09:16
Sale proceeds to be applied to debt reduction and possible share buyback.
• This was announced already in June. Company confirming debt reduction as a priority.
• Selling 44 properties for €242m.
• Revenue will decrease by €9.2m and FFO by €2.9m
• Sale price 10% below carrying valuation but company says this has no impact on rest of valuations.
• The company had already included €280m in "Properties for sale" in the LTV calc in Mar 25.
• If the entire €242m were applied to debt reduction the impact would be to reduce LTV from 45.4% to 42.2%
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FOREX: USDJPY Extends Pull Lower, Breaks S-T Trendline Support
Jul-01 09:13
- Analysts have been quick to highlight that the latest greenback selling has notably been paired with an adjustment lower for the US curve, which has been pertinent alongside a significant reduction in geopolitical risk premia. With US 10yr yields slipping to a 2-month low below 4.2% this morning, the Japanese yen is comfortably the best performing currency in G10.
- Price action has extended the pullback from last week’s highs to 3.4%, which has likely been assisted by a cleaner positioning profile following last Monday’s spike to 148.03. The shooting star candle formation highlights a reversal of the recent recovery and today’s weakness in particular has been exacerbated on a break of short-term trendline support, drawn from the May lows.
- As noted, the first support comes in at 142.80 (Jun 13 low), however the key short-term support remains at 142.12, the May 27 low.
- Potentially providing an additional yen tailwind, it is worth noting the Q2 Japan Tankan survey painted a resilient picture and improved capex outlook, which we wrote about in more detail here: https://mni.marketnews.com/3TgwKpZ
Source: Bloomberg Finance L.P. / MNI
EUROPEAN INFLATION: Unrounded Flash June HICP
Jul-01 09:09
| Jun-25 | May-25 | |
| Headline (Y/Y) | 1.97 | 1.90 |
| Headline (M/M) | 0.28 | -0.05 |
| Core (Y/Y) | 2.29 | 2.28 |
| Core (M/M) | 0.36 | -0.02 |
| Non-energy industrial goods (Y/Y) | 0.50 | 0.61 |
| Non-energy industrial goods (M/M) | -0.22 | 0.09 |
| Services (Y/Y) | 3.28 | 3.23 |
| Services (M/M) | 0.67 | -0.08 |
GILT AUCTION RESULTS: Another soft gilt auction; albeit not as soft as last week
Jul-01 09:08
- Another gilt auction where the LAP (lowest accepted price) is below the pre-auction mid-price.
- This follows two soft auctions last week. There was a little blip lower visible on the gilt futures chart, but only of 5 ticks or so which was almost immediately retraced. We are broadly trading at pre-bidding deadline prevailing levels now.
