EM CEEMEA CREDIT: Turkish Airlines: Ordering new 50 aircraft from Boeing
(THYAO: Ba2/BB/BB)
The orders coinciding with President Trump and Erdogen’s meeting is obviously deliberate, but the strategy is in line with the Airlines ambitions of having its entire fleet comprised of new generation aircraft by 2035 and to achieve 6% growth. We see minimal impact on the company’s credit profile or credit ratios in the near term from the orders, given the airline’s ample liquidity ($6.3bn in ash & equiv and credit facilities >$6bn available) and moderate credit ratios (Net debt to EBITDAR to between 2-2.5x over next couple of years) and state ownership.
- Turkish Airlines ordering a total of 50 B787-9 and B787-10 aircrafts from Boeing with an option to buy a further 25 more. These are expected to be delivered between 2029-2034. Turkish airlines also intends to place orders of 150 737-8/10 Max, of which 100 are firm and 50 optional, if the airline can successfully negotiate with engine manufacturer CFM.
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SILVER TECHS: MA Studies Remain In A Bull-Mode Position
- RES 4: $41.064 - 1.764 proj of the Apr 7 - 25 - May 15 swing
- RES 3: $40.285 - 1.618 proj of the Apr 7 - 25 - May 15 swing
- RES 2: $40.000 - Psychological round number
- RES 1: $39.655 - 1.500 proj of the Apr 7 - 25 - May 15 swing
- PRICE: $38.448 @ 08:07 BST Aug 27
- SUP 1: $37.334/36.216 - 50-day EMA / Low Jul 31
- SUP 2: $35.285 - Low Jun 24
- SUP 3: $33.940 - 50.0% retracement of the Apr 7 - Jul 23 bull leg
- SUP 4: $32.958 - Low Jun 2
Trend signals in Silver are unchanged and remain bullish. Prices have recently recovered off support around the 50-day EMA, now at $37.334. A clear break of the average is needed to strengthen a short-term bearish threat and allow for a deeper retracement. This would open $35.285, the Jun 24 low. For bulls, the latest resumption of gains opens the next objective at $39.655 a Fibonacci projection.
USDCAD TECHS: Bullish Trend Structure
- RES 4: 1.4111 High Apr 10
- RES 3: 1.4019 38.2% retracement of the Feb 3 - Jun 16 bear leg
- RES 2: 1.3968 High May 20
- RES 1: 1.3925 High Aug 22
- PRICE: 1.3841 @ 08:03 BST Aug 27
- SUP 1: 1.3807 20-day EMA
- SUP 2: 1.3777/22 50-day EMA / Low Aug 7
- SUP 3: 1.3576 Low Jul 23
- SUP 4: 1.3557/40 Low Jul 3 / Low Jun 16 and the bear trigger
A bull cycle in USDCAD that started mid-June remains in play. The recent breach of resistance at 1.3879, the Aug 1 high, continues to highlight a bullish phase. Moving average studies have recently crossed and are in a bull-mode position, strengthening the current uptrend. An extension higher would signal scope for 1.4019, a Fibonacci retracement. Support to watch lies at 1.3775, the 50-day EMA. A break of the EMA would signal a reversal.
GILTS: Opening calls
- Gilt Dec (G Z5) call, 90.42/90.45 range.
These can be a little distorted because of the spread, Yesterday it settled at 4.
