EM ASIA CREDIT: Reliance Industries: Sells paint assets
(RILIN, Baa2/BBB+/ BBB)
"*RELIANCE SAYS SOLD 35M EQUITY SHARES OF ASIAN PAINTS" - BBG
Reliance Industries announced it has sold a 3.7% stake in Asian Paints Ltd. for INR77bn ($900m). A potential sale was reported mid-May. The paint sector is considered to be highly competitive with margins compressing. Neutral for spreads.
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MNI: JAPAN APRIL CORP GOODS PRICE INDEX +4.0% Y/Y; MAR +4.3%
- MNI: JAPAN APRIL CORP GOODS PRICE INDEX +4.0% Y/Y; MAR +4.3%
- JAPAN APRIL CORP GOODS PRICE INDEX +0.2% M/M; MAR +0.4%
NEW ZEALAND: Card Spending Trends Remain Mostly Soft
New Zealand April card spending was -0.2m/m for total, after a revised -1.6% fall in March (originally reported as -1.5%). For retail card spending we flat in April, after a -0.8%m/m fall in March. The trend around m/m spending momentum has been mostly negative since the start of the year. The net migration estimate eased to +2480k for March, from +4040 in Feb. Annual net migration was +26531k as at end March.
- For retail card spending, core retail rose 0.2%m/m after falling 0.8% in March. Durables were up 0.1%, while consumables rose 0.5%, apparel was off 1.9%. Fuel and vehicle related spending were both down over 2%.
- In y/y terms the biggest falls were for fuel and vehicles (ex fuel). Only consumables recorded a decent y/y rise of 3%.
JGBS: Futures Little Changed With US Tsys After US CPI
In post-Tokyo trade, JGB futures closed little changed, -1 compared to settlement levels, after US tsys finished Tuesday's NY session little changed.
- There is little in this report alone to suggest a meaningful gap between CPI and PCE-in other words, the slight downside miss in core CPI doesn't carry a major re-interpretation for PCE via the components. Note that the April core PCE consensus was 0.24% M/M coming into today, and while this may dip slightly, we doubt forecasts will be radically changed (core CPI came in at 0.22% M/M).
- The greenback has weakened, eroding a solid portion of the prior session advance. Amid the continued bid for major equity indices, the US dollar traded in a more typical manner with risk, weakening against most G10 peers.
- "Nippon Life is looking to reduce its holdings of Japanese government bonds and is seeking investment opportunities in other areas, such as sovereign bonds in Europe and Australia, to diversify its portfolio." (per BBG)
- "Nippon Life Insurance Co. is considering investing in lower-rated collateralised loan obligations (CLOs) to increase yields, as it seeks to diversify its investments abroad." (per BBG)
- Today, the local calendar will see PPI data alongside BoJ Rinban Operations covering 1-3-year and 5-25-year JGBs.
