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Daily Archives: 30th January 2019

30th January 2019

When the doves fly

iTraxx Main

73.4bp, -1.7bp

iTraxx X-Over

321.1bp, -5.3bp

🇩🇪 10 Yr Bund

0.19%, -1bp

iBoxx Corp IG

B+164.8bp, -1bp

iBoxx Corp HY

B+498bp, +1bp

🇺🇸 10 Yr US T-Bond

2.70%, -1bp

🇬🇧 FTSE 100

6049.92, (-0.47%)
🇩🇪 DAX

13208.12, (-0.36%)
🇺🇸 S&P 500

3357.01, (-1.31%)

Holding on to gains…

After a difficult final quarter of 2018, we have got just what we needed in January as we corrected some the ills which so blighted 2018’s performance. Brexit might have dominated Tuesday’s session and led to a blank session for markets, but Wednesday was all about gauging the repercussions of the win for Theresa May.  Just like a game of tennis, the ball is back in the EU’s court.

Sterling weakened than recovered. Equities dropped (for other reasons) and were still underwater on Wednesday. Cash credit has been flat amid little activity although we managed some deals in Wednesday’s session. European earnings are emerging and have displayed a bias to weakness (Bosch, Siemens – as industrials are expected to be pressured by Chinese macro slowdown), while Santander’s earnings showed some strength as LatAm/Spain offset weakness in the UK.

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30th January 2019

SANTAN – Spain may be its home BUT… | Bank Capital Insights

LATAM is where it is growing…

SANTAN delivered in line earnings this morning driven by growth in its LATAM franchises and consumer finance businesses in Europe. For the year 2018, net income increased by 18% to EUR 7.8 billion, translating to a ROE of 8%.  

SANTAN is now becoming more and more reliant on LATAM, which now contributes to more than 40% of overall earnings. And it is seeing earnings pressure in its domestic market and in UK. There is nothing to suggest that these trends will reverse anytime soon.

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