Concorde Capital Research: Ferrexpo increases cash payment for Eurobonds exchange to 25%

Ukraine’s largest pellet exporter Ferrexpo (FXPOLN) announced on Feb. 6 that it has amended the terms for its exchange offer on its USD 500 mln Eurobonds maturing in April 2016. The company has increased its outright cash payment to those bondholders who will agree to exchange to 25%, from 20% initially. It has also extended the deadline for receiving consent for the second time in a row to Feb. 20 from Feb. 17 a day before. According to the issuer’s statement, only 34.17% of bondholders have ag ru.cbonds.info »

2015-2-6 12:57

Australia Consumer Sentiment Highest Since December 2010

Confidence among Australian consumers rose to its highest level in more than two years in March with the effects of the past interest rate cuts by the Reserve Bank becoming more visible.

A survey by Westpac and the Melbourne Institute showed Wednesday that the consumer sentiment index rose 2 percent in March to 110.5 from 108.3 in February. This is the highest level of the index since December 2010.

"This is a strong result," Westpac's Chief Economist Bill Evans said. It is the fifth consecutive month that the index has registered above 100, he noted.

Evans said that in recent months, the accumulation of the cuts appeared to be genuinely boosting confidence. Since October last year, the confidence index has increased 11.5 percent.

The Reserve Bank of Australia kept the cash rate unchanged at 3 percent in February and March, but said there is scope to ease policy further, if necessary, to support demand.

The central bank has reduced cash rate six times since it started its easing cycle in November 2011.

Also, "equity markets and the associated signals that global economic prospects are improving are the other key driver of this improved confidence," Evans said.

Data released by the Australian Bureau of Statistics on Wednesday showed that home loans declined unexpectedly in January. The number of dwelling commitments for owner occupied housing fell 1.5 percent month-on-month to 44,383.

Economists had forecast an increase of 0.5 percent following 2.1 percent fall in December. Lending has now declined for four consecutive months. Meanwhile, investment lending rose 4.4 percent from the previous month.

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2013-3-13 11:14

U.K. Lawmakers Say Treasury Unaware Of QE Impact

U.K. lawmakers on Friday said the Treasury could not explain the effect of the quantitative easing on the whole economy. The panel said some GBP 375 billion has so far been injected into the economy as an 'experiment'.

"The Treasury has not convinced us it understands either the risks it has taken on by indemnifying the Bank of England against losses on Quantitative Easing or the expected economic benefits," the Public Accounts Committee said in an annual report.

Further, lawmakers said, "The Treasury's attempts to stimulate economic growth through new lending have, so far, not been successful." The treasury should be clear what it wants this BoE scheme to achieve and how it intends to monitor it.

"Throughout, the Treasury seems to be embarking on a series of expensive experiments, indemnified with taxpayers' money," the report said.

The panel observed that high staff turnover reduced the Treasury's ability to respond to crises and manage public spending effectively. Although staff turnover declined in 2011-12, it is still "very high."

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2013-2-15 11:17