Wednesday 5 August 2020

morning wrap 5 august

*POINTS OF NOTE*

 

Equity Markets rallying but with low conviction I feel. In the UK, Oil majors (BP+4.9%) continue their move up as do Airlines (Easyjet up 8.85%).

 

COVID

U.S. Daily Coronavirus Cases Inch Lower, Hitting About 45,000 - WSJ

 

PMIs

  • China PMI - Services underperforming manufacturing. 3 month low for Caixin PMI services
  • Peripheries PMIs - Italy and Spain PMI both beat expectations
  • UK Services and Composite PMI comes in line

 

FINS:

  • New CS AT1 trading up (100.25/100.5) | CS 5.25 27
  • Barclays in the market with new AT1 (presumably to pre-finance Barclays 8% AT1)

 

CORPS

US HY - Issuance nears $10bn this week

BMW Second Quarter Ebit Loss Wider Than Estimates  

Virgin Atlantic Files Chapter 15 Petition to Aid U.K. Rescue

Vonovia: Solid 1H print as expected with only 1% of tenants asking for rent assistance

Disney Earnings Report Reveals Rare Loss | Mulan remake will be available on disney+ for $30... - WS

 

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*MORNING WRAP*

 

MACRO CREDIT   3

Caixin PMI Services Index dipping to a three-month low of 54.1 vs consensus of 58   3

UK CIPS/IHS MARKIT JULY FINAL SERVICES PMI AT 56.5 (VS FLASH 56.6)   3

UK JULY FINAL COMPOSITE PMI AT 57.0 (VS FLASH 57.1)   3

ITALY JULY SERVICES PMI RISES TO 51.6; FORECAST 51.4   3

ITALY JULY COMPOSITE PMI RISES TO 52.5; FORECAST 51.8   3

SPAIN JULY SERVICES PMI RISES TO 51.9; FORECAST 52.3   3

SPAIN JULY COMPOSITE PMI RISES TO 52.8; FORECAST 52   3

SWEDEN JULY PMI SERVICES RISES TO 54.8 from 49.2 prior.   3

SWEDEN Composite to 53.7 from 48.7   3

Why’s the ECB Buying the Debt of So Many Non-EU Companies?   3

NEW ISSUES / TENDERS   5

IPT: Barclays $Bmark PerpNC 12/2025 AT1 6.625% Area   5

NEW BACR PNC-12/25 set to pre-fund Barclays 8% AT1 | RBC Comment   5

PRICED: Credit Suisse $1.5b PerpNC7 Sub at Par to Yield 5.25%   6

MANDATE: Aircastle to Hold Fixed-Income Investor Calls Today   6

PRICED: Avis Budget Car Rental $350m 5.75% 2027 Tap at 92.0 to yield 7.235%   6

US HY - Issuance nears $10bn this week   6

COVID19   6

U.S. Daily Coronavirus Cases Inch Lower, Hitting About 45,000 - WSJ   6

Novavax coronavirus vaccine induces immune response in early study, shares jump - RTRS   6

US   7

Office Markets Under Pressure as Coronavirus Squeezes Cities - WSJ   8

UK / IRE   9

British new car registrations rose by roughly 11% year on year in July   9

London Rents Set to Slump to Lowest Level in Nearly Six Years - BBG   9

FINANCIALS   10

CMZB 2Q20: The bank reported an underlying Profit Before Tax of €211m vs. cons. €37m | Citi  10

BKIR 1H20: Large loss on higher loan losses, looks to front loading, question on asset quality   11

Phoenix Appoints New Business Leaders to Grow Open Business - WSJ   11

AIG Results Look Grim but Represent Progress - WSJ   12

Metro Bank 1H 2020 - STIFEL commetns   13

LendInvest finances £10m bridging loan for borrower after Covid-19 financing delays 13

Legal & General - Solid earnings but dividend outlook will be in focus | Citi - Buy (TP: £2.42)   13

IG   14

BMW Second Quarter Ebit Loss Wider Than Estimates   14

BP 2Q20: 50% Div Cut; New Green Strategy | Creditsights   14

Vonovia: Solid 1H print as expected with only 1% of tenants asking for rent assistance   15

Segro: The headline is in line with adj. EPS at 12.5p. Q3 collections at 90% perhaps a touch below what we would like to see | Citi  16

Aircastle grants rental deferrals to half its customers | FlightGlobal   16

Disney Earnings Report Reveals Rare Loss | Mulan remake will be available on disney+ for $30... - WSJ   17

Diageo full-year sales plunge as demand in bars, restaurants dries up   19

HY   20

Virgin Atlantic Files Chapter 15 Petition to Aid U.K. Rescue   20

EM / ASIA   20

Gramercy Statement on Agreement Between Argentina and its Creditors   20

Sony’s Results Get Boost From Videogame Boom - WSJ   20

Turkish Lira’s Borrowing Cost Shoots Up on Offshore Markets - WSJ 21

Virgin Australia to slash workforce, focus on short haul under Bain   22

ESG / RENEWABLES / BUY SIDE   23

Big Bond Traders Double Down on Their Bet on Peripheral Europe - BBG   23

Britain’s National Grid plans to test hydrogen heating for homes   23

RATINGS   23

EQUITIES   23


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Beats on US Markit and ISM Services indices | Curve steepens

Beats on US Markit and ISM Services indices | Curve steepens