Free Trial

BASIC INDUSTRIES: Week in Review

BASIC INDUSTRIES
  • Industrial spreads were in line with €IG on average, with considerable dispersion. Rolls-Royce (-9) continues to perform following last week’s beat & raise which bodes well for ratings. Surprisingly to us, Siemens Energy (+6) and Westlake (+11) widened following earnings.
  • We had no supply or rating actions; HY did see downgrades for SIG, ams-OSRAM and PCF.
  • Earnings saw Westlake, Siemens Energy, Emerson Electric, Siemens, CRH and Lanxess beat, Glencore in-line. Despite the general outperformance for the quarter, guidance was mostly flat and somewhat downbeat in places, with CRH the standout.
  • Chemicals seem to be at or through a trough with destocking largely done, helpfully, apart from Agri which remains weak. Demand appears stabilised rather than recovering overall, implying some macro fragility still.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.