EU CONSUMER STAPLES: Metro AG | bolt-on
May-23 11:27
(MEOGR 29s; NR/BBB- Neg) (owned by Daniel Křetínský)
Bolt-on (€180m in sales co).
We expect S&P downgrade unless Kretinsky sets up guarantees with EP group.
1.25% step from early March on the 30s if so (worth ~100bps).
29/30s spread looks wrong. Retail denominations on both.
https://newsroom.metroag.de/en/news/metro-acquires-gvs-group-to-accelerate-fsd-growth?dt=20250523
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EUROZONE ISSUANCE: 7-year BTP Italia to be launched end of May
Apr-23 11:19
- The MEF has announced that it will launch its first BTP Italia since March 2023 with an offering for retail investors between 27-29 May and for institutional investors on 30 May. As usual, the BTP Italia is linked to Italian inflation (rather than Eurozone inflation).
- The guaranteed minimum annual (real) coupon rates will be announced on Monday 26 May (likely ISINs announced then too). There will be the usual 1% bonus to retail investors who hold the issue from launch until maturity.
- The maturity date will be 4 June 2032.
- The last BTP Italia launched in March 2023 had a 5-year maturity and saw E8.563bln sold to retail investors and E1.353bln sold to institutional investors.
OUTLOOK: Price Signal Summary - Gilt Rally Extends
Apr-23 11:17
- In the FI space, Bund futures continue to trade closer to their recent highs. A bull cycle remains in play and the pullback between Apr 7 - 9 is considered corrective. A fresh short-term cycle high on Apr 7 reinforces a bullish theme. The contract has recently cleared 131.14, 76.4% of the Feb 28 - Mar 11 bear leg. This opens 132.56 next, the Feb 28 high. Firm support lies at 130.31, the 20-day EMA.
- Gilt futures are trading sharply higher today, confirming an extension of the recovery that started Apr 9. The rally cancels a recent bearish theme. The climb has resulted in a breach of 92.63, the Apr 8 high, and the contract is approaching 93.44, the 76.4% retracement of the Apr 7-9 sell-off. A break of this level would strengthen the current bull cycle and expose 94.50, the Apr 7 high and a key resistance. Support to watch is 91.97, the 20-day EMA.
OPTIONS: Larger FX Option Pipeline
Apr-23 11:17
- USD/JPY: Apr24 Y140.00($1.6bln); Apr28 Y140.00($1.1bln)
- USD/CAD: Apr25 C$1.3800($1.9bln), C$1.4000($1.6bln)
