TECHNOLOGY: TMT Week In Review
Sep-27 13:04
- Comms/Tech were +0.5bp/+0.3bp relative to the €IG Corps index as of yest’s close for a YTD relative performance of -1.7bp/+4.2bp.
- Supply this week came in the form of a triple-tranche deal from Comcast; the €900mn/€900mn/£750mn 8yr/12yr/16yr tightened by 32bp/32bp/20bp to price at MS+93bp/MS+113bp/UKT+95bp. The EUR lines had MNI-calculated NICs of 13bp/10.5bp and have tightened by 7-8bps as of the time of writing.
- On ratings, we saw S&P move Worldline’s BBB- rating to negative outlook with the name once again significantly underperforming it’s peer space.
- This week we flagged DirecTV/Dish merger reports, SES perps making another move lower, Ubisoft’s guidance cut, Telia’s CMD, SAP’s DoJ probe, EU approval for the Swisccom/Vodafone Italia deal, Telecom Italia’s Sparkle unit sale and the consensus outlook for Cellnex/American Tower/Inwit. Links to be included in the weekly PDF.
- Elsewhere, higher beta names such as WBD and WMG also underperformed, as did some higher quality names such as TMUS, VZ and NFLX though most of the space was clustered either side of flat WoW average moves.
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BONDS: US and UK Rolls
Aug-28 13:03
December contracts have been front for the past few hour in Treasuries and the UK Gilt, Pace:
- Ultra: 85%.
- TBond: 86%.
- Ultra 10: 85%.
- TYA: 80% (slightly below).
- FVA: 87%.
- TUA: 86%.
- Gilt: 90%.
US-CHINA: Biden And Xi To Hold Call In "Coming Weeks"
Aug-28 13:03
MNI London: The White House has issued a readout of today's meeting between White House National Security Advisor Jake Sullivan and Chinese Foreign Minister Wang Yi.
- The White House: "The two sides held candid, substantive, and constructive discussions on a range of bilateral, regional, and global issues," noting the pair, "welcomed ongoing efforts to maintain open lines of communication, including planning for a leader-level call in the coming weeks."
- According to the White House, "Sullivan emphasized that the United States will continue to take necessary actions to prevent advanced U.S. technologies from being used to undermine our national security, without unduly limiting trade or investment."
- Sullivan also, "raised continued concerns about the PRC’s unfair trade policies and non-market economic practices."
- The White House readout, similar to a Chinese readout of the meeting released earlier, flags that Sullivan and Wang, "noted the importance of regular, ongoing military-to-military communications and planned to hold a theater commander telephone call in the near future."
- The resumption of military-to-military channels was a key objective of Sullivan's trip and could reduce the risk of inadvertent escalation between the US and China in the Indo-Pacific.
- The Washington Post notes: "China has been careful to avoid openly favoring either U.S. presidential candidate, but Chinese foreign policy experts warn of renewed instability and a full-blown trade war if Donald Trump is elected."
- Biden and Xi could hold a bilateral meeting on the margins of APEC summit in Peru (Nov. 10-16), or at the G20 summit in Brazil (Nov. 18-19). Both summits come after the US presidential election, likely informing the scope of any potential bilat.
STIR: Effective Fed Funds Rate
Aug-28 13:02
New York Fed EFFR for prior session (rate, chg from prev day):
- Daily Effective Fed Funds Rate: 5.33%, no change, volume: $86B
- Daily Overnight Bank Funding Rate: 5.33%, no change, volume: $249B
