Daimler battles earnings woes
and swap rate moves
Automaker manages size and spread expectations
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Societe Generale WEREûTHEûLEADS
Eleanor Duncan
WEEK IN NUMBERS
15bp
THE SPIKE IN TWO-YEAR TREASURY
YIELDS AFTER HEADLINES SUGGESTED THE
FED IS NOT AT THE START OF AN EASING
CYCLE. CHAIR POWELL’S SUBSEQUENT
COMMENTS AFTER THE FOMC CUT THE
BASE RATE BY 25bp TEMPERED THE
SELL-OFF, BUT THERE ARE STILL DOUBTS
ABOUT HOW AGGRESSIVE IT WILL BE
1.125%
THE COUPON ON GERMAN UTILITY
ENBW’S €500m NOVEMBER 2079
NON-CALL NOVEMBER 2024 HYBRID LAST
WEEK – THE LOWEST EVER COUPON FOR
A CORPORATE HYBRID. A €500m AUGUST
2079 NON-CALL AUGUST 2027 TRANCHE
ALSO CAME INSIDE THE PREVIOUS
RECORD, AT 1.625%
-0.482%
YET ANOTHER RECORD LOW YIELD
ACHIEVED BY 10-YEAR BUNDS LAST WEEK
AFTER TRUMP HIT CHINA WITH FURTHER
TARIFFS
US$24.6bn
THE AMOUNT THAT UK FINANCIALS
HAVE RAISED IN THE US DOLLAR MARKET
THIS YEAR, WHICH IS PROVIDING BETTER
PRICING LEVELS THAN STERLING OR
EUROS
1.80
1.82
1.84
1.86
1.88
1.90
1.92
1.94
1.96
1.98
31/7/19 1/8/19
%
–0.5
–0.4
–0.3
–0.2
–0.1
0
0.1
0.2
0.3
2/1/192/2/192/3/192/4/192/5/192/6/192/7/192/8/19
%
“It’s good to get the deal away,
but it’s perhaps not as strong a
book as we’ve been seeing”