·BofA Merrill Lynch advises best-of put option for Asia indexes
·Basket structured around Japan, S. Korea and Hong Kong gauges
The idea: buy a so-called best-of put option on a basket of three major equity indexes,
a trade the U.S. bank says costs almost half the price of buying regular puts. They’re
recommending a strategy using the Nikkei 225, Kospi 200 Index and the Hang Seng
that would pay off in the event of declines in equities over the next three months. The
derivatives strategists also had ideas for those worried about a possible bubble in
U.S. tech stocks.
by Adam Haigh
June 7, 2017, 5:17 AM GMT+3
·Sterling seen rallying to $1.31 if May wins a large majority
·Currency may slump up to 7% if there is no clear verdict
The pound could plunge to as low as $1.20 on Friday, a level last seen in January,
should the U.K. snap election lead to a hung parliament, according to a Bloomberg
poll of analysts.
Such an outcome, though seen as unlikely, would be marginally more negative than
even an electoral upset that sees the Labour Party defying odds to emerge the winner,
according to the survey of 11 banks and brokerages. That suggests investors don’t
share Prime Minister Theresa May’s view that when it comes to Brexit, not having a
deal is better than a bad one. A victory for May’s Conservative Party would be
supportive of the pound, and this outcome is more or less already priced in, the
That suggests investors don’t share May’s view that no deal is better than a bad one
when it comes to this week’s U.K. election. Of all the potential outcomes, including a
win by the Labour party, a hung parliament would be the worst one for the pound,
according to analysts surveyed by Bloomberg.
by Anooja Debnath and John Ainger
June 7, 2017, 7:00 AM GMT+3
·British election, Comey testimony, Qatar crisis aiding demand
·Precious metal has risen this year as dollar extends decline
Gold’s taking aim at $1,300 an ounce. The metal has rallied to the highest since
November as investors position themselves for the outcome of the U.K. election and
potential drama of former FBI Director James Comey’s testimony, while also tracking
tensions in the Middle East.
Bullion for immediate delivery was at $1,292.02 an ounce at 7:21 a.m. in London,
holding near Tuesday’s intraday peak of $1,296.15, the highest level since Nov. 9,
according to Bloomberg generic pricing. The climb has been supported by a fall in the
dollar, which has sunk to the lowest since October.
by Ranjeetha Pakiam
June 7, 2017, 2:53 AM GMT+3 June 7, 2017, 9:28 AM GMT+3
·Popular stock and bond holders lose about 3.3 billion euros
·Santander will raise 7 billion euros in rights issue for deal
Banco Santander SA agreed to take over Banco Popular Espanol SA after
European regulators determined that the troubled lender was likely to fail and
ordered it to be sold.
Santander will raise about 7 billion euros ($7.9 billion) in a rights offer to
bolster Popular’s balance sheet, acquiring the stricken lender for 1 euro,
according to a regulatory filing on Wednesday. The deal imposes losses of
about 3.3 billion euros on Popular’s stock and bondholders as regulators
sought a rescue that would avoid taxpayer funding.
by Charles Penty, Manuel Baigorri and Esteban Duarte
June 7, 2017, 9:12 AM GMT+3 June 7, 2017, 1:58 PM GMT+3