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Equity Moves

CONSUMER CYCLICALS
  • WBA -24%: We are okay keeping £25s as a cheap view, €26s still look rich (~$5b ahead of it).
  • Levi -16%: Equities coming off a rally, no credit impact on earnings but €27s look rich - rotate into Coty (flat) or Dufry (+30bps).
  • H&M -12%: Normal vol for earnings, not too concerned for credit but does trade at bottom end of BBB retailers. PVH29s is a cheap view.
  • Whirlpool -1.5%: Still up +15% from Bosch buyout rumours. Cash lines another -2-3bps tighter today. No issue from us/is coming in from wides leaving risk/reward somewhat favourable.

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