EU TRANSPORTATION: Maersk: 3Q Results
(MAERSK: Baa1/BBB+/NR)
- 3Q EBITDA $2.7b (vs. $4.8b LY), EBIT $1.3b (vs. $3.3b) on normalising ocean freight rates (-31% y/y). Freight volumes were supportive +7%.
- YTD FCF of $1.2b (vs. $3b LY)
- $4b in equity pay-outs YTD vs. $1.8b LY#
- Net cash position of -$2.6b, down from -$5.6b LY
- Gross debt $18.4b
- new 9y was to fund the Mar-26 line
FY guidance narrowed:
- EBITDA $9-9.5b (prev. $8-9.5b)
- EBIT $3-3.5b (prev $2-3.5b)
- FCF > $1b (prev > -$1b)
- Capex across 2024-25 of ~$10b (prev. 10-11b)Capex across 2025-26 of ~$10-11b (prev. 10-11b)
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FED: US TSY 3Y AUCTION: NON-COMP BIDS $154 MLN FROM $58.000 BLN TOTAL
- US TSY 3Y AUCTION: NON-COMP BIDS $154 MLN FROM $58.000 BLN TOTAL
US: Jeffries Rules Out 1-Year Obamacare Extension Ahead Of 7th Govt Funding Vote
Laura Weiss at Punchbowl News reporting that House Minority Leader Hakeem Jeffries (D-NY) has called a potential one-year extension for enhanced Obamacare subsidies a “non-starter”. Comes after Punchbowl reported that Senator Mike Rounds (R-SD) “has talked about doing a one-year clean extension and then a second year with reforms/phase-outs. But this is by no means a majority view among Senate Republicans, and certainly not House Republicans.”
- Jeffries' comments may cause some discomfort for Senate Minority Leader Chuck Schumer (D-NY), who has declined to outline his specific demands for supplying votes to the Republican funding measure, and is likely searching for an offramp to the ongoing government shutdown.
- Schumer is cognizant that Republicans are highly unlikely to agree to Democrats’ central ask for a permanent extension to the ACA subsidies, with a short-term extension likely the best route to resolving the current standoff. Weiss notes that, “Several House Dems back a bipartisan bill for a 1-year extension. [Rep Tom] Suozzi [D-NY] is co-lead.”
- Senate Majority Leader John Thune (R-SD) is expected to hold a seventh vote on the House-passed November 21 funding bill (and Democrat alternative) at some point this evening. Both bills are expected to fail again.
US TSYS/SUPPLY: Preview 3Y Note Auction
Tsy futures are extending highs (TUZ5 104-07.88, +1.38; TUZ5 112-22 +9.5) ahead of the $58B 3Y note auction (91282CPC9) at 1300ET, WI is currently at 3.585%, 10bp cheap to last month's stop. Results will be available shortly after the competitive auctions closes at 1300ET.
- September auction recap: Treasury futures remained weaker but pared losses after $58B 3Y note auction (91282CNY3) stopped through: drawing 3.485% high yield vs. 3.492% WI; 2.73x bid-to-cover vs. 2.53x prior.
- Peripheral stats saw indirect take-up climbed to 74.24% vs. 53.99% prior; direct bidder take-up retreated to 17.39% from 28.13% prior; primary dealer take-up 8.37% vs. 17.88% prior.
