MNI: PBOC Sets Yuan Parity Higher At 7.1870 Mon; -1.39% Y/Y

MNI: China CFETS Yuan Index Down 0.36% In Week of Dec 6

MNI: PBOC Net Injects CNY13.8 Bln via OMO Monday

MNI BRIEF: PBOC Increases Gold Reserves

CORRECTED-MNI: Fed's Hammack-Near Or At Time To Slow Rate Cuts

MNI BRIEF: Fed's Goolsbee Sees Rates Fair Bit Lower In A Year

MNI JAPAN Q3 GDP REV +0.3% Q/Q; PRELIM +0.2%; MEDIAN +0.2%

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Reckitt Management Call Concluded - Key Points

CONSUMER STAPLES
  • Mgmt holding onto its hardline/confident view with a repeat of its statement on Friday - denying Enfamil causes NEC and/or there wasn't any sufficient warning of any risks & "strongly disagrees with verdict". Its confident on appeal.
  • Legally its clarifying this was a state procedure and not part of the Federal grouping of multidistrict (MDL) cases (reported ~400+ in this) - for reference reports are a select 4 MDL "bellwether" cases will first go to trial & company did confirm that none of these trials had been scheduled yet (it sees them starting no earlier than 2025).
  • It does not provide number of cases - as we highlighted its saying this is because cases are mixed between referencing Enfamil & a competitor (its likely referring to ABT's Similac here). It says it has 44% market share in hospitals as a point of reference. Mgmt adds premature formula is less than 10% of group revenues.
  • No change to capital allocation plans (dividends/buybacks) - this should increase credit spreads beta to any updates (so far equities have been the mover on assumptions of divvy/buyback cuts).
  • Our take from it; Management is confident but there's little clarity on specifics around legal risks & the timeline of Federal cases beginning only next year is not attractive for investors. Mid's are another +5-7 wider today, we would still stay clear of the name (alongside ABT).
Credit BulletsBulletHomepagemarkets-real-timeCredit
Credit BulletsBulletHomepagemarkets-real-timeCredit

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.