Friday 19th December 2014
NEWS TICKER: FRIDAY DECEMBER 19TH 2014: Scotiabank’s Commodity Price Index dropped -4.8% m/m in November (-6.1% yr/yr) and will end 2014 in a ‘deflationary’ mode, says economist Patricia Mohr. "Significant capacity expansion and the defence of market share by major oil and iron ore producers— against a backdrop of lacklustre world economic growth — account for the softness at the end of the year," she says. Mohr adds that the decision by Saudi Arabia not to reduce output to shore up international oil prices, but instead to allow prices to drop to levels curbing US shale development appears to be having a negative impact on confidence in a wide variety of other commodity as well as equity markets. She predicts prices will fall further this month, but will start to rebound in mid 201 - Jonathan Hill, the EU's financial-services commissioner, says he plans to pursue rules that separate a bank's proprietary trading from retail operations. "The sensible thing to do is to seek to make progress quickly" on the issue, Hill said. "There are still areas of risk in some of the biggest and most complicated banks,” reports Bloomberg- CME Group, said yesterday that it will change daily price limits in its CME Feeder Cattle futures effective today, pursuant to its emergency action authority. The current daily price limit for CME Feeder Cattle futures is $3.00 per hundredweight and will change to $4.50 per hundredweight effective on trade date December 18th Additionally, effective December 19th (tomorrow) these limits will have the ability to expand by 150% to $6.75 per hundredweight on any business day in the event that one of the first two contract months settles at limit on the previous trading day. CME Feeder Cattle futures have been locked limit for five consecutive days as a result of various factors. The change to daily price limits is necessary to ensure continued price discovery and risk transfer, says the CME. Daily price limits for CME Live Cattle futures will remain unchanged at $3.00 per hundredweight. Effective Friday, December 19th, these limits will have the ability to expand by 150 percent to $4.50 per hundredweight in the event that one of the first two contract months settles at limit on the previous trading day - The Straits Times Index (STI) ended +16.42 points higher or +0.51% to 3243.65, taking the year-to-date performance to +2.49%. The FTSE ST Mid Cap Index gained +0.29% while the FTSE ST Small Cap Index gained +0.71%. The top active stocks were Keppel Corp (+2.68%), SingTel (-1.02%), DBS (+2.36%), Global Logistic (-3.21%) and UOB (+0.30%). The outperforming sectors today were represented by the FTSE ST Basic Materials Index (+3.13%). The two biggest stocks of the FTSE ST Basic Materials Index are Midas Holdings (+6.38%) and Geo Energy Resources (unchanged). The underperforming sector was the FTSE ST Telecommunications Index, which declined -0.98% with SingTel’s share price declining -1.02% and StarHub’s share price declining-0.73%. The three most active Exchange Traded Funds (ETFs) by value today were the IS MSCI India (+2.56%), DBXT CSI300 ETF (+0.42%), STI ETF (+0.61%). The three most active Real Estate Investment Trusts (REITs) by value were Ascendas REIT (-0.42%), Keppel DC REIT (unchanged), Suntec REIT (+0.26%). The most active index warrants by value today were HSI23400MBeCW150129 (+7.32%), HSI22600MBePW150129 (unchanged), HSI24000MBeCW150129 (+12.50%). The most active stock warrants by value today were KepCorp MBeCW150602 (+21.95%), DBS MB eCW150420 (+29.29%), DBS MB ePW150402 (-18.03%) - Spain’s Director of Public Prosecutions, Eduardo Torres Dulce, has resigned from the post for “personal reasons”, Spanish daily El Mundo reported this morning. A spokesman for the Public Prosecutor’s office confirmed the news by telephone to The Spain Report, saying that Mr. Torres Dulce had informed Justice Minister Rafael Catalá of his decision: “but that it perhaps would not come into effect until they find a replacement”. That decision is taken at cabinet level. The next cabinet meeting for Rajoy’s government is tomorrow morning - Hedge funds including Marshall Wace, Odey Asset Management and Lansdowne Partners are shorting OTP Bank Plc, a Hungarian lender with a Russian subsidiary whose shares have fallen almost 6% this month reports Albourne Village. All three London-based funds took or increased their position this month in OTP, Hungary’s largest lender, according to data compiled by Bloomberg. The ruble rose today in Moscow after plunging as much as 19%against the dollar yesterday, when Russia’s central bank increased interest rates to 17% percent from 10.5 percent in an attempt to stem the decline. The ruble is down 52% this year and has taken a disproportionate beating in the wake of sanctions and falling oil prices. The country still has the third largest currency reserves in the world and so is unlikely to default. According to Eric Chaney, Manolis Davradakis and Greg Venizelos from AXA IM’s Research and Investment Strategy team Russia will likely resort to fiscal stimulus to contain the risk of social and political unrest. Capital controls, political unrest and even default on private hard currency debts are possible outcomes they say. They credit default swaps market is pricing a one-third probability of sovereign default within five years - Indonesia is ramping up financing for its $439bn development program, planning an almost fivefold increase in sales of project sukuk. The government is seeking to raise IDR7.14trn rupiah (around $568m) from notes that will fund particular construction ventures next year, compared with IDR1.5trn this year, which say local press reports, will help finance its estimated spending of about IDR5,519trn from 2015 to 2019 to build roads, railways and power plants.

VTB Capital places TRY300m ($167.6m) bond issue

Thursday, 26 April 2012
VTB Capital places TRY300m ($167.6m) bond issue VTB Capital plc has successfully issued a three-year, TL 300 million ($167.6m) bond in Turkey, with a coupon of 11.28%. Underwritten by Garanti Securities, an agency of Garantibank, with Fokus Holding as advisor, the bonds were sold exclusively to local Turkish qualified investors, making VTB Capital plc the first ever foreign entity to have issued a local currency bond that has been distributed locally in Turkey. http://www.ftseglobalmarkets.com/

VTB Capital plc has successfully issued a three-year, TL 300 million ($167.6m) bond in Turkey, with a coupon of 11.28%. Underwritten by Garanti Securities, an agency of Garantibank, with Fokus Holding as advisor, the bonds were sold exclusively to local Turkish qualified investors, making VTB Capital plc the first ever foreign entity to have issued a local currency bond that has been distributed locally in Turkey.

A landmark deal for both VTB Capital and the Turkish capital markets in general, this transaction also represents a milestone in terms of the tenure offered in the Turkish market, with only one other local non-Sovereign entity having offered a three-year bond previously.

Priced at 11.28%, VTB Capital plc has achieved a favourable pricing level, paying a spread over the three-year Turkish Sovereign on par with the largest domestic Turkish banks.



Atanas Bostandjiev, CEO, UK and International, of VTB Capital plc, the bond, " underlines the strategic importance of Turkey for VTB Group, and will lay the foundations from which VTB Capital will look to grow its business operations in the country.”

Makram Abboud, CEO Middle East & Africa and Co-Head of the International Multi-Product Structured Origination and Distribution group for VTB Capital plc, notes: “I believe that trade and financial flows between Russia and Turkey will significantly increase in the very near future and VTB Capital is well positioned to help facilitate these flows and support our clients.As we continue to grow our international presence aggressively, we are evaluating various financing opportunities in the region, and in particular within Turkey. The proceeds will be utilised accordingly.”

"We were issuing Turkish bonds so naturally we needed to choose a strong local player to act as underwriter. Garanti Securities is one of the leading private banks in the local market." adds Abboud. "The transaction was fully sold down to Turkish investors.The bonds are priced at 11.28% so VTB Capital plc has achieved a favourable pricing level, paying a spread over the three-year Turkish Sovereign on par with the largest domestic Turkish banks."



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