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.
It was a quiet week ahead of earnings. We had a few early reporters including Pepsi - who showed us it’s not just Burberry that will blame the Chinese consumer on a miss. Read-through on Delta earnings was slightly positive, but we remain cautious on the struggling names. Primary was surprisingly interesting on bpost – one we will be watching through earnings. Spreads are heading towards this year’s tights, but it hasn’t been blanket compression. Air-France and Walgreen Boots reversing out wider reflect lessons learnt this year; the same cannot be said for Kering, Burberry and Lufthansa px action.
(see weekly pdf for hyperlinks)
Fundamentals linked news
- Imperial gives a trading update that sees FY guidance left unchanged for MSD growth in EBIT. Boosted equity pay-outs while it lags peers in non-combustibles exposure is not great to see though .
- Pepsi; reports continuing volume falls. Management points to macro over any structural shifts away from its snacks.
- Walgreen Boots; 26s drift wider ahead of the high-beta earnings. Summary of events since here.
- Auchan widens on flows. We will circle back on it next week, but we see uncertainty to its likely drawn-out turnaround plans.
- Airlines; Delta kicks of Airline earnings with positive comments on transatlantic performance.
- UK Grocer market share data for September sees Tesco break its highest since 2017.• Airports: Heathrow September traffic shows an easing over the quarter. We are more interested to see if ADP reports the bounce Delta saw post-Olympics.
Event Driven Movers
- Alimentation Couche-Tard revises up its bid despite a defensive target. 7-11 parent reports earnings and announces restructuring. The read-through to Couche-Tard’s bid is mixed.
Primary (fundamentals linked)
- bpost and Gatwick. Mandate out for Louis Dreyfus 7Y.
Rating Actions
- Alimentation Couche-Tard (Baa1/BBB+ Stable); S&P comments on 7-11 including on weak US operating conditions. Couche is performing better but is not immune to trends in the low-income consumer.
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.