IFR 03.08.2019

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”