Euro banks – Last Jeudi http://lastjeudi.org/ Mon, 11 Oct 2021 18:50:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://lastjeudi.org/wp-content/uploads/2021/03/cropped-icon-1-32x32.png Euro banks – Last Jeudi http://lastjeudi.org/ 32 32 Lufthansa repays € 1.5 billion in state aid after appeal for funds https://lastjeudi.org/lufthansa-repays-e-1-5-billion-in-state-aid-after-appeal-for-funds/ https://lastjeudi.org/lufthansa-repays-e-1-5-billion-in-state-aid-after-appeal-for-funds/#respond Mon, 11 Oct 2021 17:50:00 +0000 https://lastjeudi.org/lufthansa-repays-e-1-5-billion-in-state-aid-after-appeal-for-funds/ Planes of the German air carrier Lufthansa are pictured on the day of the airline’s annual general meeting at the airport in Frankfurt, Germany on May 4, 2021. REUTERS / Kai Pfaffenbach / File Photo First tranche of hybrid capital repaid Payment for the 2nd installment before the end of the year Government bailout totaled […]]]>

Planes of the German air carrier Lufthansa are pictured on the day of the airline’s annual general meeting at the airport in Frankfurt, Germany on May 4, 2021. REUTERS / Kai Pfaffenbach / File Photo

  • First tranche of hybrid capital repaid
  • Payment for the 2nd installment before the end of the year
  • Government bailout totaled 9 billion euros

FRANKFURT, Oct. 11 (Reuters) – Deutsche Lufthansa (LHAG.DE) announced on Monday that it had concluded a capital increase of 2.16 billion euros ($ 2.5 billion) and used the proceeds to repay 1.5 billion euros in state aid as it expects a rebound in air travel.

The German airline has repaid the first of two installments of hybrid capital, called the silent stake, which it received as part of a 2020 bailout, it said.

The company added that it also intends to repay the second tranche, amounting to € 1 billion, in full before the end of this year.

“Today we are keeping our promise and repaying a large part of the stabilization funds sooner than expected. We are increasingly confident about the future,” said Managing Director Carsten Spohr.

He added that the demand for flights, especially from business travelers, was increasing daily, although the market remained difficult.

The airline is also aiming to end an unused portion of the first tranche of stake before the end of 2021. A state loan of € 1 billion was repaid in February.

Lufthansa said last week that its rights issue was 98.36% underwritten by investors and the rest were quickly sold on the open market. Read more

Last year, the airline received a € 9 billion government bailout to stay afloat during the COVID-19 pandemic, which led the German state’s Economic Stabilization Fund (ESF) to take 15% of the shares of Lufthansa.

This participation was reduced to 14.09% in the capital increase.

Lufthansa said on Monday that the ESF had committed not to sell any shares for the next six months, but would sell them completely within 24 months of the capital increase, provided the airline repays both. participation brackets, among other contractual requirements.

Reporting by Ludwig Burger Editing by Mark Potter

Our Standards: Thomson Reuters Trust Principles.


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The high public debt, the link between the sovereign bank and the bank, the low growth potential remain economic challenges https://lastjeudi.org/the-high-public-debt-the-link-between-the-sovereign-bank-and-the-bank-the-low-growth-potential-remain-economic-challenges/ https://lastjeudi.org/the-high-public-debt-the-link-between-the-sovereign-bank-and-the-bank-the-low-growth-potential-remain-economic-challenges/#respond Thu, 07 Oct 2021 13:50:06 +0000 https://lastjeudi.org/the-high-public-debt-the-link-between-the-sovereign-bank-and-the-bank-the-low-growth-potential-remain-economic-challenges/ Greece’s public debt ratio (rated BB + / Stable) is just behind that of Japan (A / Stable) among 36 countries whose debt is publicly rated by Scope. While we expect Greece’s public debt to slow to 199.1% of GDP by the end of 2021, from a peak of 205.6% last year, it remains well […]]]>

Greece’s public debt ratio (rated BB + / Stable) is just behind that of Japan (A / Stable) among 36 countries whose debt is publicly rated by Scope. While we expect Greece’s public debt to slow to 199.1% of GDP by the end of 2021, from a peak of 205.6% last year, it remains well above the level of before the crisis of 180.5% in 2019.

The high stock of Greek debt makes the government vulnerable to any revaluation of the markets after this crisis concerning the sustainability of the public debt and the deficits accumulated during the crisis, especially as the ECB’s support is gradually reduced. This vulnerability to market correction remains a major constraint on sovereign ratings.

After 2021, Greece’s public debt ratio is expected to decline to around 186% of GDP by 2026, with growth remaining above potential and budget deficits narrowing, assuming there is no interruption of economic recovery.

Sustainable recovery remains conditional on resolving structural bottlenecks

Nonetheless, a sustained economic recovery remains conditional on Athens resolving residual structural bottlenecks, such as the continued reduction in non-performing loans (NPLs) on national bank balance sheets, even recognizing recent significant progress in this area. . High nonperforming loans (21.3% of total loans in June but reduced by 40% at the end of 2019) affect the profitability of the banking system and its ability to finance the recovery. Piraeus Bank, Alpha Bank and the National Bank of Greece have taken capital improvement measures to cover the cost of future non-performing loan securitizations and the phasing out of transitional prudential arrangements.

System-wide Tier 1 capital ratios fell to 13.0% of risk-weighted assets in the second quarter of 2021, from 16.4% in the fourth quarter of 2019, reflecting profitability and quality of mediocre assets. In this regard, in an unfavorable scenario of the European Banking Authority’s crisis review in 2021, the basic capital ratios of three of the four systemic banks observed decline to 8% or less, testifying to the remaining vulnerabilities. of the financial system.

The link between the sovereign bank and the bank represents an increasing risk in unfavorable scenarios for the financial system

Above all, a high share of deferred tax credits in bank capital, the increase in the holdings of national government bonds of banks, the State’s holdings in Greek banks and guarantees under the Hercules program induce a stronger link between the sovereign bank and the banks – an increased risk for the sovereign borrower in contingent scenarios impact on the resilience of the banking system.

The government focused on the outstanding challenges

The government has focused on resolving bottlenecks in the real economy such as labor market rigidities, weak investment and high private sector arrears. Unemployment remains high, at 14.2% in July, although it fell sharply from 17.2% in April. Tax compliance remains a weakness, although it has also improved, as spending on pensions and public sector wages is above the euro area average, limiting the fiscal space for spending conducive to growth. the growth.

Further progress needed to build confidence in Greece’s long-term growth potential

Progress is important in some of the aforementioned areas to strengthen confidence in the long-term growth potential of Greece, which remains among the weakest in the euro area, as well as to strengthen confidence in the stability of the Greek economy in the future. future stress scenarios.

Scope upgraded Greece’s long-term sovereign ratings one notch to BB + from BB on September 10.

For an overview of all of today’s economic events, check out our economic calendar.

Dennis Shen is Director of Sovereign and Public Sector Ratings at Scope Ratings GmbH and Senior Analyst for Greece’s Sovereign Credit Rating.


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Dollar Holds Near 14-Month High Against Euro Amid Inflation Fears https://lastjeudi.org/dollar-holds-near-14-month-high-against-euro-amid-inflation-fears/ https://lastjeudi.org/dollar-holds-near-14-month-high-against-euro-amid-inflation-fears/#respond Thu, 07 Oct 2021 01:51:00 +0000 https://lastjeudi.org/dollar-holds-near-14-month-high-against-euro-amid-inflation-fears/ One hundred US dollar bills can be seen in this photo taken in Seoul on February 7, 2011. REUTERS / Lee Jae-Won / File Photo TOKYO, Oct. 7 (Reuters) – The safe-haven dollar held on Thursday at a 14-month high against the euro, as surging energy prices fueled fears that inflation could dampen economic growth […]]]>

One hundred US dollar bills can be seen in this photo taken in Seoul on February 7, 2011. REUTERS / Lee Jae-Won / File Photo

TOKYO, Oct. 7 (Reuters) – The safe-haven dollar held on Thursday at a 14-month high against the euro, as surging energy prices fueled fears that inflation could dampen economic growth while prompting the Federal Reserve to act sooner to normalize policy.

The US currency remained stable at $ 1.1558 per euro after strengthening to $ 1.1529 on Wednesday for the first time since July of last year.

The dollar index, which measures the greenback against a basket of six rivals, was little changed at 94.188 from Wednesday, after rising nearly 0.5% in the past two sessions. The index hit a one-year high at 94.504 last week.

The Japanese yen, another safe haven, was broadly flat at 111.375 per dollar, near the midpoint of its range of the last week and a half.

Overnight, crude oil hit a seven-year high before pausing after its recent sizzling gains, while natural gas hit a record high in Europe and coal prices from major exporters also hit. historic peaks. Read more

“All the talk on (trading) floors, on social media and in large markets revolved around Nat Gas, and it was deafening,” wrote Chris Weston, head of research at broker Pepperstone in Melbourne. , in a customer note entitled “OMGas”.

“Traders were concerned that the risks of stagflation were in motion and wondered how the heck do central banks handle a stagflation event caused by a supply shock? “

Investors have also remained on the alert over negotiations over the US debt ceiling, even as senior US Senate Republican Mitch McConnell has said his party will allow an extension of the federal debt ceiling until in December, a decision that would avoid a historic default with a heavy economic toll. Read more

The Federal Reserve, which has so far mainly argued that inflationary pressures will be transient, has said it will likely start cutting its monthly bond purchases as early as November, before following up with interest rate hikes. Read more

Jobs have been the Fed’s other main focus, and Friday’s non-farm payroll report may provide further clues as to the timing of the Fed’s next moves.

Economists expect continued improvement in the labor market, with a consensus forecast of 473,000 jobs created in September, according to a Reuters poll.

U.S. private sector payrolls grew more than expected in September, as COVID-19 infections began to decline, allowing Americans to travel, eat out, and re-engage in other high-touch activities ADP’s national employment report showed Wednesday. Read more

Meanwhile, bitcoin, the world’s largest cryptocurrency by market value, hovered near a nearly five-month high of $ 55,800 hit on Wednesday, last trading around $ 54,881. .

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Price of currency offers at 0114 GMT

All spots

Tokyo spots

Points of Europe

Volatilities

BOJ Tokyo Forex Market Information

Reporting by Kevin Buckland; Editing by Muralikumar Anantharaman

Our Standards: Thomson Reuters Trust Principles.


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Gas prices rise 40% as FTSE 100 slips https://lastjeudi.org/gas-prices-rise-40-as-ftse-100-slips/ https://lastjeudi.org/gas-prices-rise-40-as-ftse-100-slips/#respond Wed, 06 Oct 2021 13:05:32 +0000 https://lastjeudi.org/gas-prices-rise-40-as-ftse-100-slips/ gHello. We start the day with major results, as Tesco reports on its trading for the first half of the year. This is good news for the supermarket giant, which has exceeded analysts’ expectations in terms of sales and profits. Tesco reported total revenue of £ 30.4 billion, up 5.9% from last year, while adjusted […]]]>

gHello.

We start the day with major results, as Tesco reports on its trading for the first half of the year.

This is good news for the supermarket giant, which has exceeded analysts’ expectations in terms of sales and profits.

Tesco reported total revenue of £ 30.4 billion, up 5.9% from last year, while adjusted profit before tax rose 40% to 1.5 billion of pounds sterling.

As a result, the company has raised its profit forecast for the year. He also announced a £ 500million share buyback.

5 things to start your day

1) Facebook covered slide from younger users, whistleblower says

Former leak manager Frances Haugen told senators the company hid the drop to protect its image and its share price

2) Putin blames the “drastic” switch to renewable energies for the energy crisis

The Russian president said that the electricity crisis in the West is caused by an “unbalanced” and “drastic” move away from fossil fuels.

3) British pound struggles as investors lose faith in conservative competence

Fuel crisis along with shortages of goods and workers undermine confidence in government economic management

4) Amazon takes on John Lewis over new electronics store

Called 4 stars, the store carries around 2,000 of the company’s most popular products and is located in Bluewater.

5) Markets are betting inflation will hit 6pc

Money markets forecast the rise in prices to far exceed Bank of England expectations by next spring

What happened during the night

–Mark Zuckerberg on Tuesday evening dismissed claims that Facebook prioritizes profiting user safety as “simply bogus.” It comes in the middle of a catastrophic week for the social media giant after a massive outage hit 3.5 billion users and caused its share price to drop 5%.

– Asian markets resumed their retirement on Wednesday despite a strong lead from Wall Street. Tokyo, Hong Kong and Seoul fell by around 1 pc with Sydney, Wellington and Taipei also in the red. Singapore, Manila and Jakarta posted gains. Shanghai is closed until Friday for a public holiday.

Coming today

Intermediate outcomes

Tesco, allied spirits

Trade update

Imperial Brands, Ferrexpo, Topps Tiles

Economy

Building PMI (United Kingdom); retail sales (EU); ADP job change (United States)


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ORION ENGINEERED CARBONS SA: Conclusion of a material definitive agreement, creation of a direct financial obligation or an obligation under an off-balance sheet arrangement of a declarant, financial statements and supporting documents (form 8-K) https://lastjeudi.org/orion-engineered-carbons-sa-conclusion-of-a-material-definitive-agreement-creation-of-a-direct-financial-obligation-or-an-obligation-under-an-off-balance-sheet-arrangement-of-a-declarant-financial/ https://lastjeudi.org/orion-engineered-carbons-sa-conclusion-of-a-material-definitive-agreement-creation-of-a-direct-financial-obligation-or-an-obligation-under-an-off-balance-sheet-arrangement-of-a-declarant-financial/#respond Tue, 05 Oct 2021 20:38:04 +0000 https://lastjeudi.org/orion-engineered-carbons-sa-conclusion-of-a-material-definitive-agreement-creation-of-a-direct-financial-obligation-or-an-obligation-under-an-off-balance-sheet-arrangement-of-a-declarant-financial/ Article 1.01. The conclusion of an important definitive agreement. Amendment to the credit agreement At September 30, 2021 (the “Closing Date”), Orion Engineered Carbons GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) incorporated under the laws of Germany and an indirect subsidiary of Orion Engineered Carbons SA (the “Borrower’s Representative”), Goldman Sachs Bank United […]]]>

Article 1.01. The conclusion of an important definitive agreement.

Amendment to the credit agreement

At September 30, 2021 (the “Closing Date”), Orion Engineered Carbons GmbH, a limited liability company (Gesellschaft mit beschränkter Haftung) incorporated under the laws of Germany and an indirect subsidiary of Orion Engineered Carbons SA (the “Borrower’s Representative”), Goldman Sachs Bank United States, in his capacity as administrative agent (as well as his successors and assigns in this capacity, the “Administrative Agent”), Goldman Sachs Bank United States as sole bookkeeper and
Deutsche Bank Securities Inc., ING Bank, a branch of ING-DiBa SA and UniCredit Bank AG in their capacity as exclusive mandated principal arrangers (in these capacities, the “Amendment Arrangers”), the other Parties to the loan which are parties thereto and the New Term Lenders (as defined therein) have entered into this agreement. Ninth Amendment (the “Ninth Amendment”), which amends the credit agreement originally dated July 25, 2014, as amended on August 7, 2014, September 29, 2016, May 5, 2017, May 31, 2017, November 2, 2017, May 3, 2018, October 29, 2018 and April 2, 2019 (as amended, restated, supplemented or otherwise modified before the Closing Date) by and among the Borrowers (as defined therein), the Guarantors (as defined therein) from time to time therein are parties, the various banks, other financial institutions and institutional investors who are parties thereto from time to time and the Administrator (the “Existing Credit Agreement” and, as amended by the Ninth Amendment, the “Credit Agreement “).

On the Closing Date, in accordance with the Ninth Amendment, the Borrower’s Representative, among others, (i) has secured € 300,000,000 in commitments under the initial euro term loans (the “Euro Term Loans “) and $ 300,000,000 initial dollar term loan commitments (the “Dollar Term Loans”, and together with the EUR Term Loans, the “Refinancing Term Loans”), which Refinancing Term Loans have refinanced existing term loans outstanding under the existing Credit Agreement immediately prior to the closing date; (ii) extended the original maturity date so that the refinancing term loans are repayable on
September 24, 2028; (iii) increased the interest rate applicable to term loans in euros and term loans in dollars by 0.25% per annum; (iv) applied an amortization rate of 1% per annum in respect of term loans in dollars; (v) set up a margin ratchet linked to ESG criteria for refinancing term loans; (vi) included provisions for stopping the publication of USD LIBOR; (vii) reset call protection as set out in the Ninth Amendment with respect to Refinancing Term Loans for an additional period of six (6) months following the Closing Date; (viii) applied a floor interest rate of 0.50% pa on term loans in dollars; and (ix) increased the capital lease basket to the greater of (a) $ 150,000,000 and (b) 10% of the total consolidated assets of the Borrowers (as defined in the Credit Agreement).

Except as described above, loans under the credit agreement continue to have the same terms as those provided under the existing credit agreement. In addition, the parties to the credit agreement continue to have the same obligations set out in the existing credit agreement.

The foregoing description of the Ninth Amendment and the Credit Agreement is not intended to be complete and is submitted and qualified in its entirety by reference to the full text of the Ninth Amendment, a copy of which is filed as Exhibit 10.1 hereof and incorporated by reference herein.

Article 2.03. Creation of a direct financial obligation or obligation under a

            Off-Balance Sheet Arrangement of a Registrant.



The information set out in Section 1.01 of this current report on Form 8-K is incorporated in this Section 2.03 by reference.

Item 9.01 Financial statements and supporting documents



(d) Exhibits



Exhibit No.   Description
10.1            Ninth Amendment, dated as of September 30, 2021, by and among Orion
              Engineered Carbons GmbH, a limited liability company (Gesellschaft mit
              beschränkter Haftung) organized under the laws of Germany, the other
              Loan Parties party thereto, the New Term Lenders party thereto,
              Goldman Sachs Bank USA, in its capacity as administrative agent for
              the Lenders, Goldman Sachs Bank USA as sole book runner and Deutsche
              Bank Securities Inc., ING Bank, a branch of ING-DiBa AG and UniCredit
              Bank AG in their capacities as exclusive mandated lead arrangers
99.1            Press Release of Orion Engineered Carbons S.A., dated October 5,
              2021
104           Cover Page Interactive Data File (embedded within the Inline XBRL
              document).

© Edgar online, source Previews


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Banks, chipmaker Infineon help European stocks tackle global gloom https://lastjeudi.org/banks-chipmaker-infineon-help-european-stocks-tackle-global-gloom/ https://lastjeudi.org/banks-chipmaker-infineon-help-european-stocks-tackle-global-gloom/#respond Tue, 05 Oct 2021 08:49:00 +0000 https://lastjeudi.org/banks-chipmaker-infineon-help-european-stocks-tackle-global-gloom/ The DAX chart of the German stock index is pictured on the stock exchange in Frankfurt, Germany on September 29, 2021. REUTERS / Staff Banks jump on rate expectations Eurozone business growth slowed in September – PMI Infineon on optimistic forecasts October 5 (Reuters) – European stocks rose on Tuesday as surging bank stocks and […]]]>

The DAX chart of the German stock index is pictured on the stock exchange in Frankfurt, Germany on September 29, 2021. REUTERS / Staff

  • Banks jump on rate expectations
  • Eurozone business growth slowed in September – PMI
  • Infineon on optimistic forecasts

October 5 (Reuters) – European stocks rose on Tuesday as surging bank stocks and a positive earnings update from German chipmaker Infineon calmed nerves following a tech-fueled sell-off on Wall Street.

The pan-European STOXX 600 index (.STOXX) gained 0.4% after closing at its lowest level since July 21 in the previous session.

Asian stocks fell to their lowest level in nearly a year amid concerns over slowing growth and rising inflation, after a weak end of the day on Wall Street that saw a sell off in Big Tech and other growth stocks.

In Europe, bank stocks (.SX7P) rose 1.4% to lead sector gains as optimism over economic reopenings and expectations of tighter monetary policy pushed bond yields higher. GVD / EU

Italian Unicredit (CRDI.MI), French Crédit Agricole (CAGR.PA) and Britain’s Lloyds Banking Group (LLOY.L) rose 2.2% to 3.3% after the US banking index ( .SPXBK) hit a record high on Monday.

“Rate-sensitive bank stocks are getting a boost as investors begin to seriously factor in rate hikes,” said Danni Hewson, financial analyst at AJ Bell.

“But there are big questions about how the economy is really rebounding, and cost pressures are wreaking havoc on businesses and consumers,” Hewson said.

Business growth in the euro area slowed in September as supply issues limited activity, while high inflationary pressures weighed on demand, according to the IHS Markit survey. Read more

Investors are now awaiting US employment data on Friday for signs of the Federal Reserve’s declining asset purchase schedule.

Automakers (.SXAP) slipped 0.2% after data showed UK new car registrations fell 35% last month, the weakest September in at least 23 years. Read more

Infineon Technologies (IFXGn.DE) gained 1.6% after confirming its 2021 revenue and said it expects results to rise further next year as demand for power chips for cars, data centers and renewable energy production is skyrocketing.

Dutch tech investor Prosus (PRX.AS) rose 2% after obtaining regulatory approval to increase its stake in German food delivery company Delivery Hero (DHER.DE).

British bakery and fast food chain Greggs (GRG.L) climbed 3.8% after raising its profit outlook for the year despite staff and supply chain problems. Read more

German leasing company Grenke (GLJn.DE) fell 11.6% after narrowing its forecast range for the full year, citing bottlenecks in global supply.

Reporting by Sruthi Shankar and Anisha Sircar in Bengaluru; Edited by Sriraj Kalluvila and Ramakrishnan M.

Our Standards: The Thomson Reuters Trust Principles.


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Stagflation fears keep stock markets in a bad mood https://lastjeudi.org/stagflation-fears-keep-stock-markets-in-a-bad-mood/ https://lastjeudi.org/stagflation-fears-keep-stock-markets-in-a-bad-mood/#respond Mon, 04 Oct 2021 12:11:00 +0000 https://lastjeudi.org/stagflation-fears-keep-stock-markets-in-a-bad-mood/ LONDON (Reuters) – Global stocks were down on Monday and the dollar remained close to its one-year highs amid fears that higher inflation, supply shortages and problems in China’s real estate sector could put the spotlight on global economic recovery in jeopardy. FILE PHOTO: Pedestrians exit and enter the London Stock Exchange in London, Britain […]]]>

LONDON (Reuters) – Global stocks were down on Monday and the dollar remained close to its one-year highs amid fears that higher inflation, supply shortages and problems in China’s real estate sector could put the spotlight on global economic recovery in jeopardy.

FILE PHOTO: Pedestrians exit and enter the London Stock Exchange in London, Britain August 15, 2017. REUTERS / Neil Hall / File Photo

Stock markets slipped to 2.5-month lows last week, after a scorching September that saw them lose more than 4% as U.S. Treasury yields jumped 20 basis points, the Reserve Federal government signaled it was ready to start loosening stimulus this year and Chinese real estate giant Evergrande markets were heading for bankruptcy.

These factors remain in play as trading in Evergrande shares is suspended days after missing a second round of interest payments on offshore debt.

Wall Street was expected to open more weakly, with a focus on the fate of the Biden administration’s multibillion-dollar spending plans, congressional wrangling over Treasury debt ceiling and monthly jobs data Friday that could allow the Federal Reserve to reduce its bond purchases. .

Futures contracts for the S&P 500 and Nasdaq indexes fell 0.4%, while the Dow Jones e-minis slipped 0.3%.

A pan-European stock index that lost 2.2% last week has hovered around flat, while Asian stocks have previously weakened, dragged down by a 2.7% loss in Hong Kong and a 1% drop in the Nikkei in Japan.

François Savary, CIO of Swiss wealth manager Prime Partners, said markets increasingly anticipate a scenario of sluggish growth stagflation and high inflation, a headwind for stocks which have hit a series of record highs and declined. trade at expensive multiples.

“You can live with highly valued markets if you have the prospect of future economic growth. But if you think stagflation is becoming a problem and the only option is to tighten policy and kill economic activity, that’s not good for stocks, ”Savary said.

While recent data has shown robust consumer spending and factory activity in the United States, inflation fears are fueled by crude futures near three-year highs of nearly $ 80 a barrel. and European gas prices approaching a record 100 euros per megawatt hour.

That, along with lingering supply problems, could force central banks to tighten policy sooner than expected.

Already, the core US PCE price index, the Fed’s preferred measure of inflation, rose 3.6% in August from a year earlier, its largest increase in three decades, while the Eurozone inflation has hit 13-year highs.

While Fed boss Jerome Powell and other policymakers insist high inflation is transient, Norihiro Fujito, chief investment strategist at Mitsubishi UFJ Morgan Stanley Securities, noted that “Powell also recently started to cover his comments, which has led investors to suspect that he, too, is worried about inflation.

Adding to concerns about growth, investor sentiment in the eurozone fell for the third consecutive month in October.

OIL AND DOLLAR

There might be little relief on the oil front as producer group OPEC Plus will likely stick to existing agreements to produce an additional 400,000 barrels per day (bpd) in November, rather than ramping up production, reported Reuters.

Investors are eagerly awaiting Friday’s monthly US wage data, predicted by a Reuters poll to show 500,000 jobs added last month.

Chart: Non-farm payrolls in the United States

“All roads this week point to the wage bill on Friday, because unless there is a marked deterioration in all labor market indicators in the report, that will likely be the catalyst to cement the decline in November, “wrote Deutsche Bank.

Chart: Inflation in the United States

These concerns have propelled the dollar close to its one-year highs against a basket of currencies and set it on track for its biggest annual rise since 2015.

The greenback eased slightly on Monday, allowing the euro to rebound to $ 1.16270, after Thursday’s 14-month low of $ 1.1563. It also fell to 111.270 yen, remaining below Thursday’s 1-1 / 2 year high of 112.08 yen.

“If you think stagflation is coming, you want to get out of cyclical stocks and into safe havens like the dollar,” Savary said at Prime Partners.

US bond yields edged up slightly, but 10-year yields at 1.49% remained below Tuesday’s three-month high of 1.567%.

The offshore yuan, meanwhile, fell a quarter of a percent to 6.4502, with investors assessing the impact of Evergrande. They were also awaiting a speech from US Trade Representative Katherine Tai on the Biden administration’s strategy for US-China trade relations.

Additional reporting by Hideyuki Sano in Tokyo; Editing by William Maclean and Alex Richardson


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A month of $ 100 billion worth of high-quality U.S. bond sales is on deck https://lastjeudi.org/a-month-of-100-billion-worth-of-high-quality-u-s-bond-sales-is-on-deck/ https://lastjeudi.org/a-month-of-100-billion-worth-of-high-quality-u-s-bond-sales-is-on-deck/#respond Sat, 02 Oct 2021 20:00:00 +0000 https://lastjeudi.org/a-month-of-100-billion-worth-of-high-quality-u-s-bond-sales-is-on-deck/ (Bloomberg) – Wall Street syndicate offices expect to see $ 90 billion to $ 100 billion in premium U.S. bond offerings in October, including up to $ 20 billion next week. Bloomberg’s Most Read That’s higher than the $ 80 billion set in October of last year and significantly more robust than the $ 68 […]]]>

(Bloomberg) – Wall Street syndicate offices expect to see $ 90 billion to $ 100 billion in premium U.S. bond offerings in October, including up to $ 20 billion next week.

Bloomberg’s Most Read

That’s higher than the $ 80 billion set in October of last year and significantly more robust than the $ 68 billion in 2019, according to data compiled by Bloomberg.

Raising rates is a priority for issuers after the 10-year Treasury yield surpassed 1.5% this week. The belief that borrowing costs could continue to rise is likely to stimulate more issuance.

“The rise in interest rates has created a new urgency for issuers to lock in rates before they rise further, which could advance issuance plans for years to come,” the strategists wrote Thursday. of Bank of America Corp. led by Hans Mikkelsen. The first half of October tends to be slower for supply due to earnings-related issue blackouts, they added.

So far, credit markets have been largely immune to the volatility that has been shaking stocks of late. Barlcays Plc strategists expect this to remain the case until the end of the year.

“Credit markets have been tested but resilient in a volatile September for risky assets, with spreads tightening during the month amid high supply,” strategists led by Bradley Rogoff wrote on Friday. “At the start of the last quarter, we expect spreads to be primarily range related and returns to be primarily carry drag.”

High efficiency

A volume of US high yield bonds of $ 25 billion and $ 50 billion is expected in October, according to five Wall Street banks and research bureaus polled by Bloomberg. In leveraged loans, sales of $ 40 billion and $ 75 billion are projected, according to four of them.

About $ 44 billion in junk bonds and $ 55 billion in leveraged loans were sold in September, with debt buybacks – including the Medline Industries Inc. jumbo deal – fueling the supply.

The fourth quarter will begin with more loans financing M&A activity. A call to lenders is scheduled for October 6 for MKS Instruments Inc.’s $ 5.28 billion term loan to finance its acquisition of Atotech Ltd. The offer will include loans in dollars and euros. MKS Instruments manufactures equipment for the chip industry.

Meanwhile, Aggreko Plc, one of the world’s largest suppliers of portable generator sets, is selling around $ 1.35 billion in dollar, pound and euro loans to fund its acquisition by I Squared Capital & TDR Capital and to refinance existing debt.

After a busy September and a quick start in October to finance the buyout, the market could slow down at the end of the year.

Cade Thompson, partner in the capital markets group of KKR & Co., said there would not be a significant forward schedule for mergers and acquisitions / leveraged buyouts for the remainder of the year. Instead, expect to see new trades executed in 2022, he told a Bloomberg News conference on September 28.

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Digital Euro Project Adds Italian Payment Provider Nexi https://lastjeudi.org/digital-euro-project-adds-italian-payment-provider-nexi/ https://lastjeudi.org/digital-euro-project-adds-italian-payment-provider-nexi/#respond Sat, 02 Oct 2021 05:00:29 +0000 https://lastjeudi.org/digital-euro-project-adds-italian-payment-provider-nexi/ Several countries have started planning to launch their central bank digital currency (CBDC). In July, the Governing Council of the European Central Bank (ECB) launched the investigative phase of a digital euro project. The instruction phase of the digital euro project is scheduled to last 24 months. The design will be based on user preferences […]]]>

Several countries have started planning to launch their central bank digital currency (CBDC). In July, the Governing Council of the European Central Bank (ECB) launched the investigative phase of a digital euro project.

The instruction phase of the digital euro project is scheduled to last 24 months. The design will be based on user preferences and technical advice from traders and intermediaries.

“We will engage with the European Parliament and other European decision-makers and inform them regularly of our findings. Citizens, merchants and the payments industry will also be involved, ”said Fabio Panetta, member of the ECB’s board of directors and chairman of the high-level task force on the digital euro.

According to ECB President Christine Lagarde, “our work aims to ensure that in the digital age, citizens and businesses continue to have access to the most secure form of money, central bank money.

A digital euro must be able to meet the needs of Europeans while preventing financial instability and illegal activities. This will not prejudge any future decision on the possible issuance of a digital euro. The digital euro is intended to supplement cash and not to replace it in 19 countries in the zone.

Nexi joins the CBDC project

Italian payments company Nexi is one of the largest payment companies in Europe and is working with the European Central Bank to create a digital euro.

Nexi provides payment services for other banks, handling 41.3 million payment cards and approximately 2.7 billion transactions each year. They also provide services to merchants and digital banking groups. Nexi’s position is that central bank digital currencies can be very important to the future of payments, on par with stablecoins.

“We are collaborating with the European Central Bank and contributing to the design of the future digital euro because we believe it can be a positive force in the evolution of digital payments,” said Nexi CEO Paolo Bertoluzzo in an interview with Money 20/20 conference.

Regarding the nature of the collaboration, Bertoluzzo said in a statement: “We are starting to talk about a new version of cash. It’s their way of thinking.

Panetta, however, advised to consider the possible risks associated with the CBDC in the midst of the advantage.

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Pound weakness eases as accumulated positioning unfolds https://lastjeudi.org/pound-weakness-eases-as-accumulated-positioning-unfolds/ https://lastjeudi.org/pound-weakness-eases-as-accumulated-positioning-unfolds/#respond Thu, 30 Sep 2021 11:05:00 +0000 https://lastjeudi.org/pound-weakness-eases-as-accumulated-positioning-unfolds/ Discussion points: Accumulated hawkish expectations cause sterling to sell off as sentiment stagnates Key EUR / GBP and GBP / USD levels to watch EUR / GBP is trading at a two-month high, with the pound posting its worst performance against the euro since April. The pound has clearly underperformed this week as positioning for […]]]>

Discussion points:

  • Accumulated hawkish expectations cause sterling to sell off as sentiment stagnates
  • Key EUR / GBP and GBP / USD levels to watch

EUR / GBP is trading at a two-month high, with the pound posting its worst performance against the euro since April. The pound has clearly underperformed this week as positioning for a hawkish BOE caused the position to relax on risk aversion sentiment. Movements also intensified in GBP / USD as the US dollar jumped more than 1.2% this week to its highest level in a year.

Central bank expectations have become a central currency market target as the unwinding of the pandemic-induced stimulus measures begins, with rate hike expectations the main driver of positioning. Last week’s FOMC meeting was a key selling point for USD bulls, as messages suggested the central bank was ready to start cutting its bond buying program in November, the chart shows. of updated points suggesting that a rate hike could occur by the end of 2022, which was more hawkish than markets expected, causing the dollar to rise and a shifting positioning against pairs that valued more hawkishness on the part of their central banks, such as the pound sterling and the New Zealand dollar.

As mentioned by Justin, the pound was positioned to be disappointed with a 15 basis point rate hike scheduled for February 2022 at a time when the data is likely to worsen slightly. The end of the holiday scheme this week is likely to see unemployment rise, but the Bank of England will want to see the extent of the impact on the labor market before taking action, which doesn’t leave much room for maneuver without disappointing hawkish expectations. There is also likely to be a drop in sentiment-based data due to ongoing bottlenecks and Brexit brakes.

The pound is likely to remain sensitive to upcoming data releases as the unwinding of positioning continues, but it is difficult to envision further downward pressure in the near term as oversold conditions make it less attractive to attract further shorts. . GBP / USD found good support around 1.34 with RSI breaking through the 30 mark shortly, so I would expect the downward pressure to stop for now as a new direction is determined. A rebound above 23.6% Fibonacci to 1.3577 should see some follow up above 1.3720, but we might see sideways trading before another move is reached.

In EUR / GBP the bullish movement has started to reverse, but we might see a continuation of the pursuit if the pair holds above 0.86 throughout the day. Its 200 day SMA (0.8644) is ahead and is the main resistance going forward, so a weekly close above this level would be a good bullish signal for a new 5 month high above 0.87.

GBP / USD Daily chart

EUR / GBP Daily chart

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— Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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