EU HEALTHCARE: IT SECTOR: Vodafone Portugal’s Nowo Acquisition Opposed Again by Portuguese Regulator
Jan-18 09:10
- Portugal's competition regulatory (AdC) opposes Vodafone Portugal's proposed acquisition of Portugal's fourth-largest operator, Nowo, as reported by Portuguese-language paper Jornal de Negocios.
- The company now has the option to present additional commitments to proceed with the deal or to abandon the acquisition. Initial remedies to address competition concerns in December included offering spectrum and fibre network access to new entrant Digi.
- As flagged earlier in the week, Vodafone Portugal has just announced an agreement with Portuguese TelCo NOS to develop and share an underground fibre network in what is clearly a strategy of refocusing on and expanding within their higher margin markets while exiting less profitable ones.
- Not much of a credit impact on screens given the size of the Portuguese market though their equity is -1.1% compared to the FTSE at -0.1% and Stoxx 600 Telcos at -0.3% in early trading.
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BUNDS: No Meaningful Reaction To DFA Issuance Plan
Dec-19 09:08
Market participants generally shrug off the DFA issuance plan given that the amount of bond issuance was in line with the range of (limited) sell-side estimates that we had seen, with Bunds ticking back from session highs and German ASW spreads holding marginally narrower on the day.
EUROZONE ISSUANCE: Germany 2024 Funding Plan (1/2)
Dec-19 09:04
- Nominal issuance via auctions E247.5bln (2023 E262bln from initial E274bln target)
- Green E17-19bln (E17.25bln in 2023; E7.5bln auction, E9.75bln synd; E15-17bln target).
- E12bln via syndications due in 2024 of which 1 green and including a new 30-year Aug-54 Bund (4 in 2023 of which 2 were green; total raised E16.75bln of which E7.0bln was non-green).
- No linkers to be issued in 2024 (as previously announced, E6-8bln target in 2023, E5.1bln issued)
- Buill issuance E165bln (E209bln in 2023; E242bln initial target).
US TSYS: Drawing Support From BoJ
Dec-19 08:55
While TY futures recently showed to fresh session highs, the contract remains comfortably within yesterday’s range, last +0-08+ at 112-16+, 0-01 off the top of its 0-09+ session range.
- Cash Tsys run 1-3bp lower on the day, with a light flattening bias seen.
- The BoJ decision and post-meeting press conference failed to commit to any meaningful normalisation steps, providing a dovish impetus for broader markets given well-documented hawkish speculation seen in recent weeks (which had pared back from extremes on the back of pre-meeting dovish source reports).
- Fed Funds future discount ~20bp of cuts through March ’24, with a cumulative ~143bp of easing seen through ’24 on the whole.
