Argentina has launched the sale of debt maturing in 100 year’s time.
Coming just two year’s after the country ended currency controls, a successful sale will mark the latest step in a swift market rehabilitation for a nation which spent more than a decade fighting investors who held out against its most recent default, in 2001.
Initial pricing thoughts for the dollar-denominated bond deal launched early in the New York trading day are for an annual yield of 8.25 per cent, according indications given to prospective investors, which would be around 2 percentage points higher than existing Argentina debt maturing in 2046.
A global investor conference call with Nicolas Dujovne and Luis Caputo, co-heads of the reorganised finance ministry, was scheduled for 9am. The deal was expected to price on Monday, and the banks leading the transaction are Citi, HSBC, Nomura and Santander.
Support for Japanese Prime Minister Shinzo Abe’s government has dropped below 50% for the first time in more than a year as respondents expressed dissatisfaction with his response to allegations of preferential treatment toward a conservative educator.
The cabinet’s approval rating plunged to 49% in a weekend poll by Nikkei Inc. and TV Tokyo, down 7 percentage points from May and 11 points compared with April. The government’s disapproval rating climbed 6 points to 42% — the highest since October 2015.
This marks the Abe cabinet’s most serious setback in public opinion since that year, when legislation expanding the armed forces’ remit ignited a public debate on Japan’s commitment to peace.
Now, the prime minister is facing allegations of favoritism over plans to establish a veterinary school in a government-designated special zone for deregulation. The prospective school operator, Kake Educational Institution, is headed by a friend of Abe’s.
The government insists that all of the proper procedures were followed in approving the new school. But a purported memo describing the project as in line with “the prime minister’s wishes” — a document whose credibility the government had questioned — has been found at the ministry of education after a second internal investigation.
The ruling coalition’s move to cut short the upper house debate on anti-conspiracy legislation also seems to have contributed to the drop in support. Among other things, the recently enacted law makes it a crime to plot terrorist attacks. Nearly half, or 47%, of respondents support the law, which has raised concerns among civil liberties groups, while 36% are opposed.
The cabinet’s approval rating fell among both men and women. Only 24% of respondents unaffiliated with any political party expressed support for the government, down 5 points from the previous survey.
A big miss, coming in at a deficit of 203.4 bn yen
expected Y 43.3bn, prior was Y 481.1bn
Trade balance (adjusted): Y 133.8bn
expected surplus Y 345.5bn, prior was Y 97.6bn
Exports y/y: 14.9% (miss)
expected +16.0%, prior was +7.5%
Imports y/y: +17.8%
expected 14.5%, prior was 15.2%
While a miss on expectations its not as if exports have collapsed, up 14.9% y/y. Expectations were for better; export performance has been a bright spot for Japan’s economy and has helped propel industrial output. To the extent this impacts on the BOJ (it won’t much at all) it’s a yen negative.