CANADA JUNE JOBS -1.4K VS FORECAST +20K, PRIOR +26.7K

MNI China Daily Summary: Friday, July 5

MNI BRIEF: PBOC Plans To Borrow Hundred Bln Yuan CGB - Press

MNI: PBOC Net Drains CNY48 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Lower At 7.1289 Fri; -0.35% Y/Y

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS FRI

MNI: BLS: NET PAYROLLS REVISIONS FOR MAY, APRIL -111K

US JUN AVERAGE HOURLY EARNINGS +0.3% Vs MAY +0.4%; +3.9% YOY

US JUN UNEMPLOYMENT RATE 4.1%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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Shipping equities under pressure on rates vol

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  • It's being linked to a slide in fright rate futures, see here. Normal vol and net they are coming off strong gains this week.
  • WCI composite container rates for week ending 4th July were $5,858/40ft container; that' is up 300% on the year with rising volumes adding to pressure here. Drewry adding it still expects "minor increase in freight rates out of China as Asian ports face congestion issues".
  • As we said other day Maersk BS has had some positives this week (see here). It upgraded FY guidance in early June on market demand/supply dynamics that it said "won't improve soon". So far its been right.
  • We don't have any firm views in the sector (screens rich) outside of caution on DSV curve till we see who wins out the ~€14b bid for DB Schenker.
  • New CMA CGM's got the cold shoulder in primary pricing its 5NC2 Snr Sec. at MS+265. Mid's are now at +214/+1.7pts. No firm view from us but we'd note 5Y CDS is at +217. If it has similar performance to its now called 27s and/or current Hapag 28s, bondholders will be left quiet happy.

    • Maersk (MAERSK; Baa1/BBB+) -3.7%
    • Hapag (HPLGR; Ba3 Pos/BB+) -5.7%
    • CMA CGM (CMACG; Ba1/BB+) Private


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  • It's being linked to a slide in fright rate futures, see here. Normal vol and net they are coming off strong gains this week.
  • WCI composite container rates for week ending 4th July were $5,858/40ft container; that' is up 300% on the year with rising volumes adding to pressure here. Drewry adding it still expects "minor increase in freight rates out of China as Asian ports face congestion issues".
  • As we said other day Maersk BS has had some positives this week (see here). It upgraded FY guidance in early June on market demand/supply dynamics that it said "won't improve soon". So far its been right.
  • We don't have any firm views in the sector (screens rich) outside of caution on DSV curve till we see who wins out the ~€14b bid for DB Schenker.
  • New CMA CGM's got the cold shoulder in primary pricing its 5NC2 Snr Sec. at MS+265. Mid's are now at +214/+1.7pts. No firm view from us but we'd note 5Y CDS is at +217. If it has similar performance to its now called 27s and/or current Hapag 28s, bondholders will be left quiet happy.

    • Maersk (MAERSK; Baa1/BBB+) -3.7%
    • Hapag (HPLGR; Ba3 Pos/BB+) -5.7%
    • CMA CGM (CMACG; Ba1/BB+) Private