EUROPEAN MARKETS WAVER AS INVESTORS KEEP A KEEN EYE ON the G20 summit scheduled to commence this weekend. The market expects a solution from US and China soon after the summit regarding the ongoing trade spat. Mark Carney implied in the event Britain crashes out of the EU the Bank of England will be compelled to slash rates. FTSE 100 -0.04%, German DAX +0.4%, CAC 40 -0.29%, STOXX Europe 600 -0.31%. The 10-year Gilt rose 3.3 basis points.

GERMAN CONSUMER CONFIDENCE SINKS amid concerns automotive manufactures will lay off thousands as Germany becomes entangled in trade tensions. Europe’s largest economy is showing signs of weakness despite record high employment. Economists fear the manufacturing slowdown could taint the robust service sector and strong labor market. “If the significant loss suffered by this indicator in June turns into a persistent downward trend, it will also be tough for propensity to buy to maintain its currently excellent level.” ADI (Advantage Data Inc.) extensive corporate-bond index data showed a net daily yield increment for high-yield versus high-grade 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, Virgin Media Finance PLC (USD) 5.25% 1/15/2021 made some analysts' 'Conviction Buy' lists. (See the chart for Virgin Media Finance PLC below). Corey Mahoney (cmahoney@advantagedata.com).

LATEST NEWS: Top moves, sovereign tighteners (5Y): France 24 bp and Spain 28 bp. Sovereign wideners (5Y): Denmark 11 bp and Korea 32 bp.

New Issues	New Issues [Continued]
1. Medtronic Global Holdings S.C.A. (EUR) 0.25% 7/2/2025 (06/25/2019): 1000MM Senior Unsecured Notes, Price at Issuance 99.372, Yielding .356%. 2. BNP Paribas (EUR) 1.625% 7/2/2031 (06/25/2019): 1000MM Subordinated Notes.

DATA CHECK:

iShares Core EUR UCITS	iShares Euro High Yield UCITS
NAV as of 06/26/2019, 133.89	NAV as of 06/26/2019, 104.59
Daily NAV Change (%) -0.08%	Daily NAV Change (%) -0.02%

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 7.7% (seasonally adjusted, March 2019)
• Eurostat's quarterly GDP: 0.4% (2019 Q1)
• 6-month Euribor: current value -0.311%, as of 06/25/2019

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