Archive for August, 2016

Corporate Profits Should Suffer Another Poor Quarter

Tuesday, August 9th, 2016

Via Bloomberg: Third-quarter to extend earnings contraction to sixth period Energy, industrials have biggest downward profit revisions The profit recovery has been pushed back. Again. Even as the S&P 500 Index sits near a record, analyst forecasts just turned negative for a sixth straight quarter for corporate results in the three months ending ...

Call of the Wild

Monday, August 8th, 2016

Via WSJ: By Ben Eisen Updated Aug. 8, 2016 7:09 p.m. ET Bond issuers are heeding the call of tumbling interest rates. Companies and government agencies are “calling” bonds at the fastest pace in four years, taking advantage of provisions that let them redeem securities under certain circumstances and save money by reissuing at ...

Auto Sales a Tad Weak

Tuesday, August 2nd, 2016

Via Bloomberg: Auto Makers Fall Short of July U.S. Sales Goals   Ford Motor Co. and General Motors Co. reported U.S. light-vehicle sales in July that fell more than analysts had anticipated while Nissan Motor Co. and Fiat Chrysler Automobiles NV gained less than expected, reinforcing concerns that the market may have peaked ...

Overnight Preview

Tuesday, August 2nd, 2016

Via Robert Sinche at Amherst Pierpont Securities: CHINA: The Caixin/Markit Serrvices and Composite PMIs for July will follow readings of 52.7 and 50.3, respectively, in June; The jump in the Manufacturing PMI for July (50.6 vs. 48.6 in June) suggests a rise in the Composite index. AUSTRALIA: The AiG Services PMI for ...

Personal Income and Spending

Tuesday, August 2nd, 2016

Via Millan Mulraine at TDSecurities: TD SECURITIES DATAFLASH                    US: Inflationary Backdrop Remains Weak, Spending Stays Strong ·         Consumer spending activity rose at a very solid 0.4% m/m pace in June, underscoring the sustained positive momentum in this segment of the US economy. In real terms, spending advanced at a respectable 0.3% m/m pace ·         The ...

JPMorgan Duration Survey

Tuesday, August 2nd, 2016

Via Bloomberg: Treasury All-Client, Active Surveys Both Flip to Net Short: JPM 2016-08-02 11:41:59.600 GMT By Stephen Spratt (Bloomberg) -- In week ended Aug. 1, all-client survey flips from net long Treasuries to biggest net short position since May 31. * Active client survey on Treasuries moves from neutral to most net shorts since March 7 * All clients ...

Uncle Sam A little Short

Tuesday, August 2nd, 2016

Via Bloomberg: U.S. Lifts Borrowing Estimate for This Quarter on Lower Receipts 2016-08-01 19:00:00.9 GMT By Saleha Mohsin (Bloomberg) -- The U.S. government plans to issue 30 percent more of its debt this quarter than previously estimated partly because of lower tax receipts, the Treasury Department said. The department will issue $201 billion in net marketable debt from July through ...

FX

Tuesday, August 2nd, 2016

Via Marc Chandler at Brown Brothers Harriman: Greenback Slides Despite RBA Rate Cut and 7-year Low in UK Construction PMI The negativity toward the US dollar is offsetting the RBA rate cut and further evidence that the UK economy is taking a hit in the immediate post-referendum period The derivatives market ...

Credit Pipeline

Tuesday, August 2nd, 2016

Via Bloomberg: By Robert Elson (Bloomberg) -- Expected to price today: * African Development Bank (AFDB) Aaa/AAA, to price at least $250m re-opened Global 1.00% May 15, 2019, via managers BNP/RBS; guidance MS +2 LATEST UPDATES * Columbia Property Trust (CXP) Baa2/BBB; investor meetings held Aug. 1 * Empresa Nacional del Petroleo (ENAPCL) Baa3/BBB-, hires C/JPM to arrange investor meetings ...

Italian banks Sliding

Tuesday, August 2nd, 2016

Via CNBC: Banca Monte dei Paschi di Siena (BMPS) may have a strong future, Italy's prime minister told CNBC on Monday, in spite of the stricken lender receiving the bottom score in a Europe-wide stress test. "My view is that Italian banks are good," Renzi told CNBC in Rome. "There are some problems, ...