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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.
TECHNOLOGY
- The Comms/Tech sub-indices underperformed €IG by 0.3bp/0.4bp this week for YTD underperformance of 9.2bp/12.8bp.
- No TMT supply this week despite the re-opening of the primary market on Mon/Tues/Wed.
- S&P moved Warner Brother’s outlook to negative after the close on Friday, citing weak H1 performance, primarily on revenue and CF declines at its linear TV ops. 2024 revenue forecast was downgraded to -1.6% from 2.6%, with EBITDA expected to decline and a worse leverage outlook; the 4.7x at Q2 seen rising to 4.4x in 2024 and 3.8x in 2025, against upside/downside thresholds of 3.5x; https://marketnews.com/sp-downgrades-warner-bros-outlook-to-negative-friday. Their EUR 27s are ~10bp tighter this week with an outright downgrade likely having been priced to some extent.
- In terms of curve movers, Warner Music continues to tighten on their upgrade to IG, while Corning’s 31s continue to tighten from YTD wides as we commented on last week. CK Hutchison somewhat reversed last week’s underperformance while Hellenic somewhat reversed some of last week’s outperformance.
- BT’s equity is ~7.5% lower since Monday’s close after reports that Sky is to launch broadband services on CityFibre’s network in 2024, expanding beyond BT’s Openreach which hosts Sky’s 5.7m broadband customers. We didn’t see the event as a spread mover and we didn’t see any widening on the story; https://marketnews.com/sky-strikes-broadband-network-expansion-agreement-with-bt-rival-cityfibre-not-a-spread-mover.
- Newsflow elsewhere was relatively subdued; Ericsson is selling a small US subsidiary (https://marketnews.com/ericsson-selling-iconectiv-to-koch-2668985090), Infineon settled a long-standing legal dispute with only a minimal leverage impact (https://marketnews.com/technology-infineon-settles-long-standing-qimonda-dispute-not-a-spread-mover) while we took a look at the recent widening of Worldline’s curve (https://marketnews.com/worldline-underperfors-into-bb-territory-as-fy-growth-outlook-falls-short-of-sp-forecast).
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.
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