GERMAN SOFTWARE MAKER SAP PLUMMETED MORE THAN 6% after reporting a 21% decline in second-quarter operating profit. The European tech sector was down 2% and can be attributed to the residual trade tensions between the US and China and disappointing earnings from Netflix on Wednesday. FTSE 100 -0.44%, German DAX -0.75%, CAC 40 -0.24%, STOXX Europe 600 -0.14%.  

VODAFONE AND LOXAM CLOSE ON RECENT ACQUISITIONS. Loxam issued three new bonds in order to finance it's acquisition of Ramirent, which allows the company to greatly reduce its dependence on its domestic market and gain market share in the Nordic area. Vodafone's purchase of Liberty Globalcoincides with its company strategy to expand beyond just a pure mobile provider. The strategy was launched by forner CEO Vittorio Colao and designed to increase customer spending and deepen user loyalty. ADI (Advantage Data Inc.). Extensive corporate-bond index data showed a net daily yield increment for high-grade versus high-yield constituents. High-grade bonds edged out high-yield debt as of 3 PM, London time.  Among European high-grade bonds showing a concurrence of top price gains at appreciable volumes traded, Shell Intl. Finance BV (USD) 2.25% 11/10/2020 made some analysts' 'Conviction Buy' lists. (See the chart for Shell Intl. Finance BV below). Anna Pickett (apickett@advantagedata.com).

 

LATEST NEWS: Top moves, sovereign tighteners (5Y): Denmark 11 bp and Italy 155 bp. Sovereign wideners (5Y): France 22 bp and China 43 bp.

New Issues	New Issues [Continued]
1. Italgas S.P.A. (EUR) 0.875% 4/24/2030 (07/17/2019): 600MM Senior Unsecured Notes, Price at Issuance 98.924. 2. Loxam SAS (EUR) 3.75% 7/15/2026 (07/18/2019): 450MM Secured Notes, Price at Issuance 100, Yielding 3.75%.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 07/18/2019, 133.99	NAV as of 07/18/2019, 104.95
Daily NAV Change (%) +0.01%	Daily NAV Change (%) -0.14%

OVERALL EUROPEAN CREDIT MARKET:
The euro-zone economy shows signs of positive momentum, although conditions are expected to deteriorate hindered by the termination of quantitative easing, weakening credit rating quality, and uncertainty regarding the outcome of Brexit. Closely watched indicators and rates:

• Eurostat's unemployment rate: currently 7.5% (seasonally adjusted, May 2019)
• Eurostat's quarterly GDP: 0.4% (2019 Q1)
• 6-month Euribor: current value -0.357%, as of 07/17/2019

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