AMSTERDAM (Reuters) - Akzo Nobel will sell its chemicals business in a 10.1 billion euro ($12.6 billion) deal to buyers led by Carlyle Group, the maker of Dulux paints said on Tuesday, making good on a promise made as it fought off a takeover last year.
Голландский производитель краски Akzo Nobel заявил, что продаст подразделение химикатов специального назначения за 10,1 млрд евро ($12,6 млрд) с учетом долга. Стоит отметить, что покупателями в рамках соглашения станут американская инвестиционная компания Carlyle Group и сингапурская фирма GIC. Между тем, руководство голландской компании отметило, что планирует использовать большую часть вырученных от продажи бизнеса средств на вознаграждение акционерам. Ожидается, что сделка, которая еще подлежит одобрению регулятивных органов, будет завершена до конца текущего года.
Голландский производитель краски Akzo Nobel заявил, что продаст подразделение химикатов специального назначения за 10,1 млрд евро ($12,6 млрд) с учетом долга. Стоит отметить, что покупателями в рамках соглашения станут американская инвестиционная компания Carlyle Group и сингапурская фирма GIC. Между тем, руководство голландской компании отметило, что планирует использовать большую часть вырученных от продажи бизнеса средств на вознаграждение акционерам. Ожидается, что сделка, которая еще подлежит одобрению регулятивных органов, будет завершена до конца текущего года.
Just as Trump sent stocks into a tailspin last week with his bellicose trade overtures against China, so the near record (point) rebound in the Dow on Monday is being attributed to a much more diplomatic tone out of the Trump administration, when first Mnuchin, then Peter Navarro played down the threat of a trade war and instead said that the administration is “actively” involved in talks with China to resolve the recent trade tensions between the two nations. Various unconfirmed media reports then also suggested that trade war with China may never materialize (of course, as Mark Cudmore explained this morning, it very well still may). It culminated with a "happy" tweet from Trump himself on Monday night, in which the stock-picking president, hours after confirming his delight with the spike in the market, tweeted "trade talks going on with numerous countries that, for many years, have not treated the United States fairly. In the end, all will be happy!" Trade talks going on with numerous countries that, for many years, have not treated the United States fairly. In the end, all will be happy! — Donald J. Trump (@realDonaldTrump) March 27, 2018 And so, just like yesterday morning, this morning global markets and US equity futures are a sea of green, which once again is being attributed to fading chances of an "all-out global trade war." The fresh surge in risk appetite emerged as the Trump administration was said to be urging China to lower tariffs on cars and open its market to U.S. financial services as part of talks to resolve trade tensions. Treasury Secretary Steven Mnuchin and his Chinese counterpart have been discussing the trade deficit between the two countries and were committed to finding a mutually agreeable way to reduce the gap and help China avoid tariffs on $50 billion of exports to the U.S. Ironically, after yesterday's upside rout, US and global stocks are almost unchanged since March 1, with the bulk of assets since March 1 now positive. Only, unlike yesterday when the dollar was tumbling, serving as a key component of the risk-on narrative, today the USD has rebounded and erased almost all of yesterday's losses. At the same time, the euro weakened as economic confidence in the region continued to slide in March. "Our base case is that there won’t be an all-out trade war," Aberdeen Standard Investments’ global head of fixed income, Craig MacDonald, , told Bloomberg. "It’s a way of applying pressure to get some wins by Trump." Still, it will lead to more volatility, MacDonald added. "Our sense is that they will get some wins rather than all out war, but it’s not something you can just dismiss. The tail risk is higher." Meanwhile in the aftermath of yesterday's massive US rally, the euphoria was everywhere, as European shares headed for their first gain in five sessions, with the Stoxx 600 Index jumping the most in six weeks, up 1.4% and joining the global relief rally seen between US and Asia overnight as, what else, "trade tensions ease." 19 out of 19 Stoxx 600 sectors rise; technology sector has the biggest volume at 111% of its 30-day average; 584 Stoxx 600 members gain, 7 decline. In terms of sector specifics, materials (+2.0%) are the outperformers, enjoying a strong rebound from yesterday’s losses. Looking at individual movers, Casino (+3.4%) spiked at the open after its Monoprix chain has agreed to sell products on Amazon, GSK (+6.0%) is a top performer in the FTSE 100 after it announced to purchase a 36.5% stake in Novartis’ healthcare unit for USD 13bln. Earlier in Asia shares were green across the board, with Japan’s Topix Index jumping the most since November 2016. South Korea’s won was the best performer among major currencies as Kim Jong Un was said to be making an unannounced visit to Beijing, his first known trip outside North Korea since taking power in 2011. The ASX 200 (+0.7%) and Nikkei 225 (+2.7%) were higher with mining names and financials leading Australia, while the Japanese benchmark outperformed as the index coat-tailed on gains in USD/JPY and following the testimony by former tax office chief Sagawa who declared there were no instructions made by PM Abe or his close circle to alter the documents related to the land sale scandal. Specifically, Japan's former tax agency chief Sagawa said there was no report to the PM's office of documents being altered and added that there were no instructions from PM Abe, his wife, Finance Minister Aso or their aides to doctor the documents. In related news, there were also comments from Finance Minister Aso that PM Abe’s office was not involved with document alterations in the controversial land sale. Mainland China and Hong Kong shares advance along with other equity markets on hopes that talks with the U.S. will resolve trade tensions. Hang Seng Index rises 0.8%; Hang Seng China Enterprises Index adds 0.9%; Shanghai Composite Index closed up 1.1% after weathering some downward pressure in the last hour of trade; it was its first gain in five sessions. As noted above, in FX, the dollar reversed earlier losses, with demand picking up amid month-end flows as the London session gets under way. EUR/USD rallied briefly in early London trading to a five-week high of 1.2476 on dollar supply and euro demand against crosses, before reversing the move; in the Asian session, the pair had traded in a very narrow range. Sterling led losses in G-10, partly driven by strong demand in euro-pound, and weighed by EUR/GBP bids amid month-end flows supportive of the greenback. The yen slid as much as 0.3% against the dollar after heavy buying in the U.S. currency across the Tokyo fix took the pair to session high of 105.75 as trade tensions between the U.S. and China eased. The Aussie fell with local bond yields as capital flows are redirected back into emerging markets; the South Korean won rallied as much as 1.2% and the onshore Chinese yuan briefly touched the strongest level since the 2015 devaluation before gains were erased Elsewhere, China’s currency touched the highest level in almost three years. In geopolitical developments, the Russian Deputy Foreign Minister warned of 'harsh' response to expulsion of diplomats from the US, but still open to cooperation. Euro-area bonds traded in the green, as do longer-dated Treasuries. Bunds initially rallied to make another test of 50bps in yield before fading; TSYs in a tight range with curve marginally flatter amid focus on this weeks heavy supply, with large early buying seen in white eurodollars, leading to a tightening in the FRA/OIS spread further from recent blowout. In commodities, crude futures unchanged, spot gold weighed by USD rally and industrial metals hold Asian session gains. Bitcoin edged higher, nearing the $8,000 level. And copper broke out of a three-day trading slump, climbing as much as 1.8%. Market Snapshot S&P 500 futures up 0.6% to 2,676.00 STOXX Europe 600 up 1.2% to 367.37 MSCI Asia Pacific up 1.4% to 175.31 MSCI Asia Pacific ex Japan up 0.9% to 573.94 Nikkei up 2.7% to 21,317.32 Topix up 2.7% to 1,717.13 Hang Seng Index up 0.8% to 30,790.83 Shanghai Composite up 1.1% to 3,166.65 Sensex up 0.5% to 33,224.00 Australia S&P/ASX 200 up 0.7% to 5,832.30 Kospi up 0.6% to 2,452.06 German 10Y yield fell 0.8 bps to 0.516% Euro down 0.01% to $1.2443 Italian 10Y yield rose 3.4 bps to 1.656% Spanish 10Y yield fell 2.0 bps to 1.241% Brent futures up 0.4% to $70.38/bbl Gold spot down 0.3% to $1,350.16 U.S. Dollar Index up 0.3% to 89.25 Top Overnight News The Trump administration is urging China to lower tariffs on cars and open its market to U.S. financial services as part of talks to resolve a rise in trade tensions that has shaken global markets, according to a person familiar with the matter President Donald Trump ordered 60 Russian diplomats the U.S. considers spies to leave the country and closed Russia’s consulate in Seattle in response to the nerve-agent attack on a former Russian spy in the U.K., as European allies and Canada took similar measures. Federal Reserve Governor Randal Quarles says “our economy is performing well, and unemployment is low. However, many households and communities continue to face financial challenges.” Federal Reserve Bank of Cleveland President Loretta Mester says she doesn’t see excessive financial imbalances, but the need to avoid them building up is another argument for “gradually taking away accommodation.” Kim Jong Un made a surprise visit to Beijing on his first known trip outside North Korea since taking power in 2011, three people with knowledge of the visit said. The ECB can only have “deeper discussions” about the next policy changes when its projections are published in June, Governing Council member Vitas Vasiliauskas says in a news conference in Vilnius Euro-area economic confidence dropped for a third month in March as the region showed signs of entering a period of more moderate growth. Optimism slipped in the region’s five biggest economies, taking the overall index to its lowest in six months The ECB alerted auditors that lenders could try to take advantage of the transition to new accounting standards to spread the hit on loan losses over years instead of reflecting them in their 2017 financial results, three people familiar with the matter said The U.K.’s withdrawal from the European Union poses “material risks” to the availability of financial services, especially in areas where fixes must be put in place by both British and EU authorities, the Bank of England said Central bank speakers: Fed's Quarles (Voter, Neutral) said US economy is performing well and unemployment is at a low level, although he added that financial challenges remain for many households and communities. Fed’s Mester (Voter, Hawk) said she sees further interest rate hikes this year and next despite seeing more slack, while Mester added that tariffs and NAFTA renegotiations pose risks to economic outlook. Fed's Bostic (Voter, Dovish) said he supports plans to gradually raise interest rates, but uncertainty over how the economy would respond next year to tax cuts and increased government spending could complicate monetary policy. ECB’s Vasiliauskas (Hawkish) expects more detailed talks on policy changes in June and agrees with market forecast for a mid-2019 rate hike. This follows ECB’s Weidmann yesterday, saying he expects a mid-2019 rate hike. ECB's Liikanen (Neutral) says EZ inflation is sustainable when ECB's objective can be met without very accommodative monetary policy. He adds that the ECB needs patience as underlying inflation is lower than expected. ECB’s Nowotny (Hawkish) believes asset purchases should be gradually reduce. Adding that If things continue as they are, they will be able to reduce asset purchases significantly and must decide by summer. Furthermore, stating we must be careful not to fall behind the curve. Asian stocks were positive across the board as the region took impetus from the gains on Wall St where stocks rebounded with a vengeance from the prior week’s worst performance in 2 years. The sharp recovery was spurred by easing trade war concerns after reports of US and China negotiating on trade and saw the largest percentage increase in all US majors since August 2015, while DJIA also gained by the most points in nearly a decade. ASX 200 (+0.7%) and Nikkei 225 (+2.7%) were higher in which mining names and financials led Australia, while the Japanese benchmark outperformed as the index coat-tailed on gains in USD/JPY and following the testimony by former tax office chief Sagawa who declared there were no instructions made by PM Abe or his close circle to alter the documents related to the land sale scandal. Hang Seng (+0.8%) and Shanghai Comp. (+1.0%) conformed to the upbeat tone as trade war concerns eased and as corporate financial results took centre stage in China, with the big 4 banks underpinned after AgBank beat estimates as it kicked off the earnings releases amongst China’s banking behemoths. Finally, 10yr JGBs were weaker amid the gains in riskier assets and with demand also shunned following a mixed 40yr auction. Japan former tax agency chief Sagawa said there was no report to the PM's office of documents being altered and added that there were no instructions from PM Abe, his wife, Finance Minister Aso or their aides to doctor the documents. In related news, there were also comments from Finance Minister Aso that PM Abe’s office was not involved with document alterations in the controversial land sale. Top Asian News China’s Risky Debt Heads Overseas as Deleveraging Rolls On Troubled Chinese Firm to Put $3.2 Billion of Properties For Sale Xiaomi’s CEO Disses the iPhone in Unveiling $500 Marquee Device PBOC Signals Yi to Run China’s Monetary Policy, Guo in ‘Support’ China’s Yuan Jumps to Highest Since 2015 as Trade Tensions Ease European equities have joined the global relief rally (Eurostoxx +1.4%) seen between US and Asia overnight as trade tensions ease. In terms of sector specifics, materials (+2.0%) are the outperformers, enjoying a strong rebound from yesterday’s losses. Looking at individual movers, Casino (+3.4%) spiked at the open after its Monoprix chain has agreed to sell products on Amazon, GSK (+6.0%) is a top performer in the FTSE 100 after it announced to purchase a 36.5% stake in Novartis’ healthcare unit for USD 13bln. Elsewhere, Akzo Nobel (+3.0%) received a boost after Carlyle has won the bid to acquire the chemical arm unit for approx. EUR 10bln Top European News Euro-Area Economic Confidence Extends Slide Into Third Month Marubeni to Sell Stake in U.K. Offshore Wind Farm Near Yorkshire Liikanen Urges Caution Against Tightening ECB Policy Too Soon Japan Tobacco Said to Plan Poland Plant Amid Overseas Push Painful Pivot West Starts to Pay Off for Ukraine’s Exporters In FX markets, it's been a very choppy session with month end flows/positioning in evidence, but far from one-way or clear cut. The Eur outperformed during early trade and was a broad gainer vs G10 counterparts with the marginal exception of the Chf as that cross traded sideways within a confined 1.1760-75 range. Eur/Usd extended gains beyond near term resistance around 1.2446 to circa 1.2475, while Eur/Gbp and Eur/Jpy got close to 0.8800 and 132.00 respectively on stops and buy orders that appeared to be fix-related. However, dovish ECB comments coincided with a loss of impetus and retreat in the single currency to the benefit of the Greenback and other peers, with a French bank noting 'strong' Dollar demand for month end re-balancing (according to Newswires, Credit Agricole). Indeed, the DXY managed to reclaim 89.000+ status, as Cable recoiled to the 1.4125 area from 1.4240 highs, Aud/Usd pulled back from 0.7750+ to 0.7715 and Nzd/Usd topped out around 0.7300 again. Usd/Cad bounced ahead of strong chart support at 1.2803 and the psychological 1.2800 level as the Loonie lost some of its NAFTA related positive momentum (after US reports that a ‘good’ deal is in the offing), while the Jpy continues to track overall risk sentiment and suffered on a sharp global stock market recovery – falling to 105.75 vs the Usd and testing resistance in the 105.70- 75 zone (200 HMA) In commodities, WTI crude futures are flat after failing to breach the USD 66/bbl level to the upside ahead of this week’s inventory releases and with Russia’s Energy Minister reiterating it is too early to discuss an exit from the output cut deal. Elsewhere, spot gold is trading marginally lower as it tracks fluctuations in the dollar index, while fears of trade wars recede after yesterday’s reports of talks between US and China. In base metals, copper strengthened overnight amid the recovery in risk appetite and with upside spurred on the open of Chinese metals trade. US Event Calendar 9am: S&P Case Shiller 20-City NSA Index, MoM SA, est. 0.6%, prior 0.64% Case Shiller 20-City YoY NSA, est. 6.15%, prior 6.3% Case Shiller CS US HPI YoY NSA, prior 6.27% 10am: Richmond Fed Manufact. Index, est. 22, prior 28 10am: Conf. Board Consumer Confidence, est. 131, prior 130.8; Present Situation, prior 162.4; Expectations, prior 109.7 DB's Jim Reid concludes the overnight wrap Let’s be honest, given the events of recent weeks, when we did get a rebound in markets it was only ever going to be in style. Last night the S&P 500, Dow and Nasdaq notched up gains of +2.72%, +2.84% and +3.26%, respectively - the biggest one-day gains since August 26th 2015. For the S&P 500, that is the third consecutive session where we have seen a move of at least 2% in either direction. The last time that happened was also in late August 2015. It’s also the 19th occasion since the start of February that we’ve seen a move of at least 1%. It took 17 months to notch up that many moves of that magnitude before that. Yesterday’s rally was helped by a much more diplomatic tone out of the White House. Indeed, on the back of Mnuchin’s comments over the weekend about being “cautiously hopeful” that China will reach a deal to avoid tariffs, the White House trade advisor, Peter Navarro, extended the narrative by playing down the threat of a trade war and instead said that the Trump administration is “actively” involved in talks with China to resolve the recent trade tensions between the two nations. To be fair the day wasn’t without its ups and downs as US markets did their best to nearly wipe out early gains of some +2% and the VIX swung in a 4pt range. The news (Bloomberg) that the FIC had opened a probe into Facebook’s recent privacy practices sparked a big wave of selling across the technology complex and while they eventually recovered, European markets closed at their lows. The Stoxx 600 finished -0.72% after being up as much as +0.62% and on an intraday basis it now means that the index is officially in correction territory having dropped over 10% from the January highs. Currency moves didn’t help as the Euro rallied +0.74%. Meanwhile bond moves were also a bit all over the place. Benchmark 10y Treasuries closed 3.8bps higher yesterday at 2.853% and so clocked up the 22nd day in a row that they’ve finished with a 2.8%-handle. A 2y auction passed smoothly with a 5y and 7y auction still to go in another busy week for supply. European rates for the most part closed unchanged. Overnight, Japan’s Kyodo News reported that North Korea’s Kim Jong Un may have made a surprise visit to China, marking his first offshore trip since taking power in 2011. For now, White House Deputy Press Secretary Raj Shah said about the reports “we don’t know if they’re necessarily true”. Markets in Asia have followed the positive US lead and are trading higher, with the Nikkei (+2.19%), Hang Seng (+0.92%), Shanghai Comp. (+0.97%) and Kospi (+0.56%) all up as we type. US equity index futures have also nudged a bit higher. Moving on. A bit of an eyesore to the broader trend in markets over the past 24 hours has been the underperformance for Italian assets. The FTSE MIB closed -1.24% yesterday while a sub-index of Italian banks closed down -1.72%. It was the same for bonds where 10y BTPs sold-off 3.6bps and the spread to similar maturity Bunds was 3.9bps wider at 139bps. That’s about 9bps wider than the post-election tights. Yesterday’s move appeared to be related to the political developments over the weekend with the election of the presidents of the lower and upper house of Italy’s parliament confirming the political strengths of the Five Star Movement and Northern League. As our economists highlight, Salvini (leader of the NL) and Di Maio (leader of 5SM) made an agreement over the weekend to obtain for each party or coalition one presidency of each of the two houses of parliament. Under such an agreement, the centre-right has proposed the presidency of the lower house to a 5SM candidate, while claiming for itself as the most voted coalition, the presidency of the senate. Importantly, our colleagues now note that the success of the agreement shows that there is a clear line of communication between the two parties and mutual acknowledgement of a valuable political interlocutor. At the margin, it would appear that the chances of a NL/5SM government have increased. The caveat is obviously that there is still a long way to go if they use this as the basis to forming a stable and long-last government and there is still a possibility that Italy may repeat elections in the near term. For now, as our colleagues rightly note, the market reaction has still on the whole been fairly muted and as long as euro membership is not questioned, the cycle remains positive, ECB’s exit remains slow and the sustainability of public finances is not at risk, sentiment is unlikely to really change. For more, please see our economists’ note here. In other news, President Trump confirmed yesterday that 60 Russian diplomats will be ordered to leave the US following the Russian spy poisoning incident in the UK. European Council President Tusk also announced that 14 EU countries would follow suit. Russia’s MICEX closed -1.62% yesterday following the news. In response, Russia’s foreign ministry noted “this unfriendly step won’t pass without impact and we will respond”. Interestingly the official twitter account of Russia’s US embassy have asked which US consulate should be closed in response. Away from politics, in the US, the Fed’s Mester noted that “if the economy evolves as I anticipate, I believe further gradual increases in rates will be appropriate this year and next year”. She noted that “gradual” hikes remain appropriate as they balance getting inflation back to target versus easy financial conditions and risks that the economy could overheat. She then added that this gradual path is consistent with the Fed’s median dot plots. Elsewhere, she noted the threat of trade wars hasn’t changed her economic outlook and that “this year is shaping up to be another good year for the economy”. The Fed’s Quarles echoed similar sentiment as he noted “our economy is performing well and unemployment is low”. In Europe, the ECB’s Weidmann reiterated that QE should be scaled back “soon” as inflation picks up and the market’s expectations for QE to end in 2018 and a first rate-hike in mid-2019 was “not unrealistic”. Elsewhere, he noted the EU’s exemption from the US metals tariffs reduces risks of escalation, but “it’s not a victory for free global trade”. Before we take a look at today’s calendar, in terms of data yesterday, in the US, the February Chicago Fed national activity index was above consensus at 0.88 (vs. 0.15 expected) while the March Dallas Fed manufacturing index was below at 21.4 (vs. 33.5 expected) and down nearly 16 points from the month prior. Elsewhere, the final reading on France’s 4Q GDP was revised 0.1ppt higher to +0.7% qoq, leading to an annual growth of +2.5% yoy. Finally, the latest ECB CSPP/PSPP ratio was 40.6% (32.0% over last 4 weeks). As a reminder, before Apr 2017 when QE was still €80bn/m the ratio was 11.5%. Between Apr-Dec 2017 (QE €60bn/m) the ratio edged up to 12.7% but since Jan 2018 (QE €30bn/m) the ratio is now 27.9%. Indeed, the strength of corporate vs. government purchases as proxied by the CSPP/PSPP ratio continues to surpass our expectations of "roughly 20%". Looking at the day ahead, the main focus will likely be the March confidence indicators for the Euro area. In the US we'll also get the March consumer confidence print, as well the March Richmond Fed manufacturing PMI and January S&P/Case-Shiller house price index readings. The Fed's Bostic and the ECB’s Liikanen will speak, while the BoE is due to publish the record of its Financial Policy Committee meeting.
AMSTERDAM (Reuters) - Akzo Nobel has agreed to sell its specialty chemicals business to investors led by U.S. private equity firm Carlyle Group for 10.1 billion euros ($12.6 billion), including debt -- a milestone for the Dutch company as it struggles to recover from a tempestuous 2017.
AMSTERDAM (Reuters) - Akzo Nobel has agreed to sell its specialty chemicals business to U.S. private equity firm Carlyle Group and Singapore's GIC [GIC.UL] for 10.1 billion euros ($12.6 billion), including debt.
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AMSTERDAM (Reuters) - Akzo Nobel said on Tuesday it had reached an agreement with U.S. private equity firm Carlyle Group and Singapore's GIC [GIC.UL] to sell its Specialty Chemicals business for 10.1 billion euros ($12.6 billion).
Two weeks ago, the punditry was left scratching its head when in his annual Berkshire letter to investors, Warren Buffett - traditionally a huge bull on the economy and markets - said that not only were there no more bargain deals, but tacitly hinted that he is amassing record "dry powder" for when the markets tumbled, or as he put its "to withstand economic difficulties", so he can buy assets on the cheap. It turns out the world's most famous investor is not the only one who is hunkering down. According to Reuters, private equity professionals are warning that today’s market could be as good as it gets, with comparisons to 2007's pre-crisis conditions becoming increasingly more common resulting in debates among industry figures "whether today's robust conditions constitute a bubble, as purchase prices rise, jumbo buyouts proliferate and deal terms become more aggressive." Among the factors cited for market frowth are LBO multiples, which in 2017 hit a record high of 11.2x EBITDA up from 10x in 2016, according to Bain & Co. Meanwhile, increasingly large buyout loans have been announced this year, including Blackstone’s $20bn buyout of Thomson Reuters’ Financial and Risk division, and the upcoming €10bn carve-out of Akzo Nobel’s specialty chemicals division: in fact, the average buyout size hit a new record of $675MM in Q3 2017. Strong debt markets are currently seeing good investor demand, but private equity firms are targeting companies that they can take through a recession, Gregor Bohm, co-head of Carlyle’s European buyout business, said at Berlin’s SuperReturn conference. “You have to sell all the companies that you don’t want to hold through a recession,” he said. Others were less diplomatic. "I think we're now in bubble territory," said Frode Strand-Nielsen, founder of Nordic private equity firm FSN Capital, who added that the next five years could be a difficult environment for private equity and leveraged credits, particularly as buyouts that have been financed with cheap debt will get more expensive if interest rates rise. “There’s a lot of financial engineering, which usually indicates we’re going into a concerning environment,” he said at SuperReturn. Here, predictably, the biggest threat cited as facing the market this year is the spectre of monetary tightening as the European Central Bank ends its QE program... ... which as BofA explained recently, threatens to crush hundreds of European "zombie" companies which only exist thanks to unnaturally low rates. If acknowledging there is a problem is half the battle, what happens next and will PE companies rush to dump their investments? Most likely not: Reuters reports that while private equity firms and bankers are aware that they are at the top of the market, "benign borrowing conditions could persist for some time, allowing borrowers to lock in cheap debt." “Borrowers are enjoying peak funding conditions,” said Ed Eyerman, head of European leveraged finance at Fitch in London. And, apparently, the smart money believes that these unnatural borrowing conditions can last so long that there is no point in even being the first to sell for all the Margin Call fans in the audience. Adding to the skepticism is that it was almost 5 years ago when some the biggest luminaries in the PE world declared the rally over. After all who can forget the words of Apollo's Leon Black who in May 2013 said that the Smart Money Is "Selling Everything That Is Not Nailed Down" Little did he know that first QE from Japan, and then Europe, would follow. Still, concerns are clearly rising fast again: co-president Scott Sperling said that Thomas H. Lee Partners is focusing on less cyclical growth businesses which are better positioned to weather a downturn that could have a similar magnitude to the last financial crisis. “It’s certainly not a brave new world that includes no cycle,” he said. Worse, he said that the PE firm's "base case incorporates a recession of the size of 2008. The swings can be reasonably violent so you have to recognise how that could affect capital structures." So is a correction or - more likely - a crash inevitable? The bulls naturally disagree, pointing to the global macroeconomic backdrop, which they claims is also stronger than 2007 and private equity firms are continuing to benefit from broad-based global economic growth, Sperling and Eyerman said. Of course, there is a simple reason why everyone believes there is a strong "macroeconomic backfrop". Or rather, 20 trillion simple reasons: Undaunted, the bulls go on: Interest rates are rising, but are expected to stay lower for longer than before the financial crisis, which is unlikely to affect companies’ debt-servicing ability in the short term. Fixed charge cover ratios, which measure how comfortably businesses can meet operating costs, are also higher in leveraged companies than before the crisis. The type of companies borrowing has also changed with the rise of software and business services with fewer assets and higher free cash flow margins, that require less onerous credit protections, Eyerman said. “They don’t have the capex and fixed costs of pre-2007 leveraged credits in sectors such as auto supply and building materials." And yet, despite lower (but rising) debt servicing costs, some still think the market's record nine-year bull run is simply delaying the inevitable correction, which will only make it more painful. "We’re watching a movie where we know what the ending is,” said Guthrie Stewart, global head of private investments at PSP Investments. “Just not how long it is until we get there." Ironically, he echoed almost verbatim what Citi's notoriously skeptical chief of credit, Matt King, asked rhetorically over the weekend: "we know what central banks are doing... why are we so slow to price that in."
Despite a very explicit warning by Goldman's co-head of equity trading that the "regime has changed" and that instead of "buying the dip", investors should be "selling-the-rip", so far this morning a global BTFD relief rally from Asia to Europe has welcomed a rare respite from volatility as U.S. stock futures surged after a week that saw two of the biggest single-day percentage drops in seven years, with the Dow set to open some 300 points higher after Friday's torrid last hour surge. And as investors await today’s revised monthly budget statement, one which reportedly will no longer balance over the next 10 years, sending the dollar sliding in the process, S&P futures are about 30 handles higher, flirting with 2,650, some 100 points higher from the lows observed around noon on Friday. S&P 500 futures jumped 1.2%, following a weekly decline that at one point was the largest since the financial crisis. Futures on the Dow Jones Industrial Average added 1.3 percent, while those on the Nasdaq 100 Index were up 1 percent. Meanwhile, the VIX fell 11% extending its drop to a second day after JPM wrote on Friday that the worst of the vol spike "unwind" by CTAs, risk parities and vol-targeting funds is behind us. Traders have been on edge following tumultuous moves in equities last week, which saw the S&P 500 post its worst week in two years with a 5.2% decline on fears over interest rate hikes, ending a stretch of 588 days without a 5% drop. However, what has been most surprising about today's session is that Ten-year Treasury yields climbed on Monday, touching a fresh four-year high amid growing inflation fears, worries about the surging US deficit, and concerns the Federal Reserve may accelerate its rate-hike schedule even as it continues to shrink its balance sheet. The 10Y yield rose as high as 2.8930%, yet unlike last week this has - so far - not been enough to dent the equity enthusiasm. The Treasury curve flattened, with futures edging further lower led by belly, EGB peripheral spreads see minor tightening given general risk-on; iTraxx Crossover also tightens ~12bps. Germany’s 10-year yield increased three basis points to 0.77 percent, the highest in more than two years. Britain’s 10-year yield rose five basis points to 1.605 percent, the highest in almost 22 months. European equities rebounded on Monday from the worst weekly sell-off in two years with share prices firming in opening trading. Europe's Stoxx 50 index climbed some 1.9%, led by miners as European bourses catch up with the gains seen late on Wall Street on Friday with macro newsflow otherwise light in the region. Sector wise, material names outperform i nfitting with some of the price action seen in the complex during Asia-Pac trade, energy names are also higher as energy prices continue to retrace some of the losses seen on Friday. In terms of stock specifics, Heineken (-4.2%) are seen lower after their earnings report was clouded by currency effects, Akzo Nobel (+1.7%) have been in focus today after reports in the FT suggesting the Co.’s chemicals unit has been subject to PE interest, Barclays (+1%) have been charged by the SFO regarding their Qatari loans and Airbus (-1.2%) are lower amid reports that they have stopped delivering A320neo jets due to issues with Pratt &Whitney engines. Asia similarly surged, with South Korean equities and the won rose after North Korean leader Kim Jong Un invited his counterpart to meet. Vice President Mike Pence told the Washington Post the U.S. is ready to engage in talks about North Korea’s nuclear program, signaling a shift in policy. The won outperformed major currencies. Japan’s markets are closed for a holiday. Elsewhere, Hang Seng (-0.2%) and Shanghai Comp. (+0.8%) were positive ahead of this week’s Lunar New Year celebrations, while most of the Asia peripheries traded with cautious gains amid a lack of drivers and with various holiday closures scheduled through to next week. China's ChiNext index of small-cap and tech shares jumped after the government was said to call on companies and mutual funds to boost the stock market. The ChiNext rose 3.5% in Shenzhen, its biggest gain since July 27, after falling to a three-year low Friday. "The news about government support eased some worries,” said Shen Zhengyang, Shanghai-based strategist with Northeast Securities Co. “People are hunting for bargains, especially smaller companies that fell too much in the recent rout” Others were more cautious: “Futures can move around quite a bit, but what I will be watching for is a stable ‘green’ in the futures coming into tomorrow,” BB&T's Walter “Bucky” Hellwig told Bloomberg. "“This will show that the S&P didn’t hold on to its 200-day moving average by accident, and this confidence is going to pull more buyers into the market.” To be sure, with Japan closed for holiday, and virtually no economic events and market drivers so far on Monday (this will change with Wednesday's CPI release) has led to an extremely muted European session. Meanwhile, the USD is weaker across the board after Sunday reports that the Trump budget to be released today will not only increase the US deficit but - for the first time under a Republican president - won't balance over 10 years. Other major currencies were rangebound, USD/ZAR drifts lower in anticipation of Zuma departure, RUB rallies with crude. Some other pairs from Bloomberg: EUR/USD rises as much as 0.4% to 1.2297 before paring as take-profit offers cap pair for now, volumes relatively muted amid Japan holiday GBP/USD edges up as as U.K. Prime Minister Theresa May embarks this week on a push to bring her divided Cabinet together and flesh out a Brexit strategy USD/JPY falls modestly AUD/NZD rises as cross bounces off 1.0750 area for the fifth time in as many days helped by macro flows The dollar’s decline supported commodities, with metals higher and crude oil halting a six-day selloff. Both WTI and Brent crude futures have continued to retrace Friday’s losses despite Friday’s Baker Hughes rig count showing a climb of 26 oil rigs. In terms of energy newsflow, UAE energy minister stated the energy market is to balance this year with shale oil output to be absorbed by rising 2018 demand. In metals markets, spot gold is seen higher alongside the softer USD, although gains are likely being capped by this morning’s risk environment. Elsewhere, copper prices have recovered from their two month lows during London trade while Chinese iron ore futures were seen lower overnight after recent rampant gains ahead of the Lunar New Year which kicks off this Thursday. And while there are few notable economic releases today, looking ahead investors will await U.S. consumer-price data on Wednesday with some trepidation. Pressure on equities has been emanating from the Treasury market and in the outlook for inflation, and any upside surprises will likely resume the positive correlation between bond and stock prices. In geopolitical developments, North Korea invited South Korean President Moon for talks in Pyongyang, while President Moon stated that they should make preparations to realize the meeting. At the same time, a US official stated that there is no differences between US, South Korea and Japan on need to isolate North Korea until it gives up its nuclear weapons program. There were also some notable central bank comments overnight, with BoE’s Haldane saying that minor interest rate increases are likely to be introduced later this year, while he also stated that inflation is currently running above target and that’s one of the factors interest rates were hiked last year. BoE Vlieghe said that if there are less credit headwinds, this may signal that the UK is ready for higher rates, there is increased evidence that a tight labour market is having upward effects on wages, also stating that rise in UK debt burden not sustainable if continues for many years. ECB’s Nowotny said that the ECB is concerned regarding US attempts to politically influence FX rates. Nowotny also added that said that EU inflation still has room to increase so the ECB is still on the careful side, although that certainly won’t last forever and that there will be a need for higher interest rates in the foreseeable future. ECB’s Visco said ECB will be patient on pursuit of its inflation goal and that it has been challenging to push up inflation expectations. This week earnings season continues in full swing with reports from Bunge, TripAdvisor, SunPower, Con Edison, Bombardier, Heineken, Loews, Michelin, PepsiCo, MetLife,Cisco, Japan Post Bank, Credit Suisse, Nestle, Airbus, Allianz, Telstra, Coca-Cola, Deere, Eni, Credit Agricole and Campbell Soup. Bulletin Headline Summary from RanSquawk European bourses catch up to the gains seen late Friday on Wall Street A relatively quiet start to the week in FX, partly due to Japan’s market holiday, but also as many participants simply take some time out after the hectic sessions of late Looking ahead, today sees a lack of tier 1 highlights Market Snapshot S&P 500 futures up 1.2% to 2,649.25 Brent Futures up 2.2% to $64.18/bbl Gold spot up 0.4% to $1,321.31 U.S. Dollar Index down 0.3% to 90.21 STOXX Europe 600 up 1.6% to 374.31 MXAP up 0.4% to 171.13 MXAPJ up 0.6% to 557.88 Nikkei down 2.3% to 21,382.62 Topix down 1.9% to 1,731.97 Hang Seng Index down 0.2% to 29,459.63 Shanghai Composite up 0.8% to 3,154.13 Sensex up 1% to 34,329.57 Australia S&P/ASX 200 down 0.3% to 5,820.70 Kospi up 0.9% to 2,385.38 German 10Y yield rose 3.7 bps to 0.782% Euro up 0.2% to $1.2271 Brent Futures up 2.2% to $64.18/bbl Italian 10Y yield rose 5.4 bps to 1.779% Spanish 10Y yield fell 0.4 bps to 1.476% Top Overnight News from Bloomberg President Trump will seek billions of dollars in new spending to build a border wall, improve veterans’ health care and combat opioid abuse in a budget proposal that’s likely to get little traction in a Republican Congress that has its own, very different spending priorities OMB’s Mulvaney: U.S. will post a larger budget deficit this year and could see a “spike” in interest rates as a result In a break from a longstanding Republican goal, the plan won’t balance the budget in 10 years, according to a person familiar with the proposal The U.S. is ready to engage in talks about North Korea’s nuclear program even as it maintains pressure on Kim Jong Un’s regime, Vice President Mike Pence said, signaling a shift in American policy The U.K. economy is ready for slightly higher rates, BOE’s Vlieghe says on a panel in London Reports of Prime Minister Shinzo Abe’s plan to nominate Haruhiko Kuroda for another term as chief of the Bank of Japan is seen as easing pressure on the yen BOE’s Vlieghe: U.K. economy ready for slightly higher rates ECB’s Nowotny says euro-area inflation has room to move higher so ECB is still on the careful side; Visco says risk of deflation averted, forex volatility seen as main risk for inflation German Chancellor Angela Merkel said she’s determined to serve another full term, rebuffing party critics who say she sold out to the Social Democrats to extend her 12 years in office China Jan. M2 Money Supply: 8.6% vs 8.2% est; New Yuan Loans 2.9t vs 2.1t est; Agg. Financing 3.1t vs 3.2t est. Asia equity markets began a holiday-quietened week mostly positive in which the region got a mild lift as US equity futures extended on Friday’s late rebound. However, upside was contained with Japan away in observance of National Founding Day, while the ASX 200 (-0.3%) was the laggard as energy names reeled from last week’s drop in crude prices and with financials subdued as the Royal Banking Commission started its inquiry into the industry. Elsewhere, Hang Seng (-0.2%) and Shanghai Comp. (+0.8%) were positive ahead of this week’s Lunar New Year celebrations, while most of the Asia peripheries traded with cautious gains amid a lack of drivers and with various holiday closures scheduled through to next week. PBoC skipped open market operations. Top Asian News China Is Said to Call on Companies, Mutual Funds to Boost Stocks China New Loans Hit Record on Seasonal Boost, Shadow Bank Curbs Chinese Tourists Are Taking Over the Earth, One Selfie at a Time Singapore Seen Leading Race to Tax $38 Billion Shopping Boom China’s Jan. New Loans 2.9T Yuan; Est. 2.05T Yuan European equities have kicked the week off on the front foot (Eurostoxx 50 +1.9%) as European bourses catch up with the gains seen late on Wall Street on Friday with macro newsflow otherwise light in the region. Sector wise, material names outperform infitting with some of the price action seen in the complex during Asia-Pac trade, energy names are also higher as energy prices continue to retrace some of the losses seen on Friday. In terms of stock specifics, Heineken (-4.2%) are seen lower after their earnings report was clouded by currency effects, Akzo Nobel (+1.7%) have been in focus today after reports in the FT suggesting the Co.’s chemicals unit has been subject to PE interest, Barclays (+1%) have been charged by the SFO regarding their Qatari loans and Airbus (-1.2%) are lower amid reports that they have stopped delivering A320neo jets due to issues with Pratt &Whitney engines. Top European News Barclays Bank Unit Charged by SFO Over 2008 Qatar Loan Deal ECB’s Nowotny Says Central Banks’ Task Isn’t to Satisfy Markets TDC Withdraws Recommendation of MTG Transaction After Bid999 Kazakh Halyk Bank Weighs Dividend as CEO Predicts Excess Capital Berlusconi Papers Over Cracks in Alliance: Italy Campaign Trail In FX, a relatively quiet start to the week, partly due to Japan’s market holiday, but also as many participants simply take some time out after the hectic sessions of late. The Usd is modestly weaker vs all its G10 peers bar the Kiwi, and then only just as Nzd/Usd nestles around 0.7250 and Aud/Nzd remains below 1.0800 – Aud/Usd maintaining 0.7800+ status. Cable has ticked up towards the top of a 1.3810-1.3875 range on little obvious Sterling supportive news or factors aside from further BoE rhetoric underscoring more policy tightening (albeit gradual), while Eur/Usd is mid-way between 1.2245-95 parameters amidst more qualms registered by ECB’s Nowotny about the US exerting political influence on exchange rates. Usd/Jpy even more contained within a 108.50-108.95 band, as are Usd/Chf and Usd/Cad in 0.9370-0.9400 and 1.2600-1.2555 ranges awaiting more direction – via stock market developments and US CPI data for example. The Dollar index is keeping its head above the 90.000 level with the latest weekly CFTC reports on spec positioning showing a slightly less short Greenback base, along with the Jpy, while Eur and Gbp longs lighten up a bit and Loonie longs increase their Cad holdings. In terms of option expiries, nothing really of note or in size for today’s NY cut. In commodities, both WTI and Brent crude futures have continued to retrace Friday’s losses despite Friday’s Baker Hughes rig count showing a climb of 26 oil rigs. In terms of energy newsflow, UAE energy minister stated the energy market is to balance this year with shale oil output to be absorbed by rising 2018 demand. In metals markets, spot gold is seen higher alongside the softer USD, although gains are likely being capped by this morning’s risk environment. Elsewhere, copper prices have recovered from their two month lows during London trade while Chinese iron ore futures were seen lower overnight after recent rampant gains ahead of the Lunar New Year which kicks off this Thursday. North Sea Forties pipeline is now said to be in full operation, according to sources. Phillips 66 reports a unit upset at wood river, Illinois refinery; the refinery has a crude capacity of 314K bpd. With data fairly thin on Monday all eyes will instead be on the White House with President Trump expected to release a $1.5tn infrastructure plan, along with his 2019 budget blueprint. Away from that the only data of note is the January monthly budget statement in the US. US Event Calendar 2pm: Monthly Budget Statement, est. $51.0b, prior $51.3b DB's Jim Reid concludes the overnight wrap Are we potentially set for a Valentine’s Day sell-off on Wednesday for markets or will Cupid fire some dovish arrows for the market. Indeed we can’t remember a more eagerly anticipated number than the US CPI release on the most romantic day of the year. It’s near impossible to predict one number but our bias continues to be for higher inflation than expected in 2018. This number has been slightly complicated as the BLS have recently made some seasonal adjustments. Before this, January's print (i.e. this week's number) had consistently exceeded expectations in the last 25 years and February's had consistently missed. So all a bit uncertain. Our economists also think we should watch healthcare inflation which is due some upside surprise soon. We'll fully preview on Wednesday but that'll be the focal point for the week and the focal point for pretty much every month this year in our opinion. Other data will pale into insignificance this week but you can see what’s in store at the end of this report. It’s also worth mentioning that today President Trump is expected to release a $1.5tn infrastructure plan (which will kick off the process for producing legislation) and also his 2019 budget blueprint. Given the tax reform, the recent budget concessions to keep the government open, and this infrastructure plan, it’s no surprise to see investors looking at whether government bond yields are too low regardless of inflation. It’s also worth noting that it’s a half-term week in the UK and parts of Europe so that could add to the liquidity fun and games in either direction. On a similar vein Chinese New Year kicks off on Thursday, with mainland markets subsequently shut until February 21st. Now recapping equities performance from Friday. European bourses were all lower after the negative leads from Asia, with key bourses down 1-1.5% (Stoxx 600 -1.45%; DAX -1.25%; FTSE -1.09%). Across the pond, the S&P exhibited large swings with a peak to trough intraday range of 4.1% before recovering throughout the day and closing 1.49% higher. The Dow (+1.38%) and Nasdaq (+1.44%) also advanced. Within the S&P, all sectors excluding energy were in the green, with gains led by the tech, real estate and utilities sectors. Elsewhere, the VIX also traded in a large range of c13pt (27.7 to 41.1) before closing 4.4pt lower to 29.06 (-13.2%). Over the weekend, the Nikkei reported Japan’s PM Abe intends to nominate Kuroda for a second five year term as BOJ Governor. Our Japanese strategist Yamashita expect the near term market impacts to be limited, in part as consensus was broadly expecting a reappointment. Looking ahead, he expects the current monetary easing framework to remain in the short term, but a normalisation bias is more likely down the track, albeit with actual action likely to be made on the condition of inflation reaching +1% and the government declaring a victory over deflation. If normalisation occurs, he expects a hike in the 10y JGB yield target to be the BOJ's first move towards normalization. ETF purchases are also likely to be scaled back sooner rather than later, although domestic stock prices will probably need to move back into an uptrend trend before that can happen. Refer to his note for more details. Following on, Nick Burns from my team has examined the potential headwinds for HY credit due to the spike higher in equity market volatility. We believe there will likely be a reversal from the current levels of equity market volatility, but credit spreads will likely come under pressure unless equity market volatility falls towards the lows seen during 2017. Further, he has also looked at how the technicals seem to be less supportive in the early stages of 2018 than they have been in recent years. Refer to his note for more details. This morning in Asia, markets are modestly higher. The Hang Seng (+0.58%), Kospi (+1.18%) and China’s CSI 300 (+0.81%) are all up while the ASX 200 is down 0.30% as we type. Elsewhere, the Japanese market is closed today for a holiday and WTI is rebounding c1%. Now recapping other market’s performance from Friday. In government bonds, earlier risk aversion seemed to help core European 10y bond yields to fall 2-5bp (Bunds -1.8bp; Gilts -4.6bp) while peripherals yields rose 3-7bp. Turning to currencies, the US dollar index strengthened 0.24% while the Euro was broadly flat and Sterling fell 0.62%, weighed down by the softer than expected prints on IP and trade deficits. In commodities, WTI oil fell 3.19%, in part as the Baker Hughes US rig count posted its biggest weekly increase in more than year. Elsewhere, precious metals softened (Gold -0.16%; Silver -0.34%) and other base metals also weakened (Copper -1.41%; Zinc -0.69%; Aluminium -0.81%). Away from markets, the US Budget director Mulvaney noted that rising budgets deficits are “a very dangerous idea, but it’s the world we live in” and the “US will post a larger deficit this year and could see a spike in interest rates, but lower deficit are possible over time given sustained economic growth”. Elsewhere, Congress has officially passed the two year spending deal with our US economists expecting the c$300bln increase in spending to potentially add several tenths to their 2018 and 2019 growth forecasts of 2.6% and 2.1% (Q4/Q4) respectively, subject to more details from the deal. Over in Germany, the BamS has reported the SPD leader Martin Schulz will be replaced on Tuesday when the SPD leadership meets. The BamS did not say how it got the information but noted Andrea Nahles will be appointed as acting party Head. Earlier on Friday, Mr Schulz has “declared his withdrawal from a (proposed) role in the federal government” but said he wanted party members to vote in favour of the coalition government with Ms Merkel’s bloc. Elsewhere, Ms Merkel noted that it’s acceptable to give the finance ministry post to the SPD and that “a finance minister can’t just do what he wants”. Finally onto central banks commentaries. The ECB’s Nowotny noted the recent equities sell off as “a normalisation” and that “…the task of central banks isn’t to satisfy markets but to ensure economic stability. So if necessary, rates will have to rise and markets will have to adapt to that”. On QE, he said “…I don’t think we will need it (after September), at least not in its current form”. On inflation, he noted it still has room to move higher, so the ECB is still on the careful side, but that won’t last forever, as “in the foreseeable future there will be a need for the ECB to raise rates…” In the UK, the BOE’s Haldane said “some further tightening of policy might be needed over the period ahead”, but the BOE is “in no rush” to do so. He added rates in the UK “won’t remotely go back to levels we’ve seen in the past, but nonetheless keeping the cost of living under control is….the single best and most important thing we can do to help the economy”. We wrap up with other data releases from Friday. In the US, the final reading of the December wholesale inventories was revised upward to 0.4% mom (vs. 0.2% expected). Overall,the Atlanta Fed's GDPNow model now estimate that the US economy will grow 4.0% saar in 1Q, while the NY Fed’s estimate is c3.4% saar. In Europe, both France and Italy’s December IP was above market, at 4.5% yoy (vs. 3.5% expected) and 4.9% (vs. 1.9% expected) respectively. Conversely, a fall in output in the oil and gas and mining sectors contributed to a lower than expected December IP in the UK, at -1.3% mom (vs. -0.9%) and 0% yoy (vs 0.4%), while its December trade deficit widened to -£4.9bln (vs. -£2.4bln expected). Exports for the month rose 0.8% mom, while imports rose an even stronger 3.0% mom. With data fairly thin on Monday all eyes will instead be on the White House with President Trump expected to release a $1.5tn infrastructure plan, along with his 2019 budget blueprint. Away from that the only data of note is the January monthly budget statement in the US. Heineken will report earnings.
Европейские индексы резко повысились в понедельник утром, когда мировые рынки восстановились после демонстрации их худшей недели за последние годы. Сводный европейский индекс Euro Stoxx 600 вырос на 1,5 процента в середине торгов со всеми основными биржами и секторами на положительной территории. Акции основных ресурсов и химических компаний были наиболее эффективными секторами в утренних сделках, чему способствовало несколько повышений рейтингов. В частности, британская компания по производству полимерных растворов Victrex поднялась на вершину европейского индекса, нарастив 4,6 процента после повышения рейтинга акций аналитиками Bank of America Merrill Lynch. Датский оператор связи TDC также взлетел после сообщений о том, что он получил новое предложение о поглощении. Его акции выросли на 7 процентов. Delivery Hero также был среди лучших исполнителей в Европе, акции выросли более чем на 4 процента после повышения целевой цены от J.P. Morgan. С другой стороны, французская фирма Ses упала до нижней границы индекса, потеряв более чем 6 процентов, после объявления об изменениях в менеджменте. В Азии акции закрылись с повышением, продолжая восстановление, наблюдавшееся на Уолл-стрит в прошлую пятницу. Индекс Dow вырос на 1,38 процента в пятницу, но все же опубликовал свою худшую неделю за два года. Выступая перед CNBC в воскресенье, управляющий директор Международного валютного фонда Кристин Лагард отметила, что «произошла коррекция рынка в пределах от 6 до 9 процентов», и она назвала ее «приветственной коррекцией». В Европе инвесторы сосредоточены на отчетах о доходах. Heineken был одним из самых худших исполнителей, акции которого упали на 2,3 процента после того, как пивоваренный завод снизил целевой показатель роста маржи на 2018 год. В других корпоративных новостях Apollo объединил усилия с голландским пенсионным фондом, чтобы купить часть бизнеса Akzo Nobel, сообщает Financial Times. Акции последнего выросли на 1,5 процента в середине утренней торговли. В Германии канцлер Ангела Меркель в воскресенье заявила, что «болезненные» уступки, сделанные ею коалиционной партии, не означают, что ее власть уменьшилась перед ее четвертым сроком в качестве лидера. На текущий момент: FTSE 7182.23 89.80 1.27% DAX 12327.80 220.32 1.82% CAC 5156.50 77.29 1.52% Информационно-аналитический отдел TeleTradeИсточник: FxTeam