Week of May 20, 2012 thru May 26, 2012

Mexico Q1 GDP +1.31% vs Q4, +4.6% vs Q1 2011 -INEGI


MEXICO CITY (MNI) - Mexico's economy expanded 1.31% in the first three months of the year compared to the prior quarter, accelerating as usual in the opening months of the year, and gained 4.6% from the same period of 2011, government statistics agency INEGI reported Thursday.

US$ CREDIT SUPPLY PIPELINE - May 17, 2012


WTD: 14,600 MTD: 63,175 MTD 2011: 76,425 YTD: 522,813 Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 5/17 4000 #Fannie Mae Benchmark Note 3 T+21 BAR/DB/UBS 5/16 300 Smiths Group Plc (Baa2/BBB+) 10 C/DB Will not grow 5/16 650 *Legg Mason (Baa1/BBB) 7 T+450 C/MS 144A Reg S, 101 CoC Put 5/16 500 *Rowan Companies (Baa3/BBB-) 10 T+320 C/RBC/WFS 5/16 250 *Cardinal Health (Baa2/A-) 5 T+120 BAML/JPM/MS 101 CoC Put 5/16 250 *Cardinal Health (Baa2/A-) 10 T+145 BAML/JPM/MS 101 CoC Put 5/16 750 *EBRD (Aaa/AAA) 5 MS-3 DB/GS/HSBC

US Tsy's Geithner: US Economy 'Gradually Getting Stronger'


--Still Live In A 'Dangerous And Uncertain World'
--Europe 'Caught In A Damaging Economic Crisis'
--Cannot Solve US Challenges With 'Severe, Immediate' Austerity

BALTIMORE (MNI) - Treasury Secretary Tim Geithner is bullish on the progress of the U.S. economic recovery, but warned Thursday that beyond the country's borders the world remains "dangerous and uncertain," with Europe in particular "caught in a damaging economic crisis."

In a speech prepared for delivery to the Greater Baltimore Committee, Geithner also warned of the risk posed by the looming year-end combination of expiring tax cuts and sharp cuts in spending, but said this also presents an opportunity to get U.S. fiscal policy on a sustainable track.

Statcan: Foreigners Unload Canadian Securities In March


OTTAWA (MNI) - Foreign investors sold C$2.083 billion worth of Canadian securities in March, following a whopping C$12.535 billion investment in February, Statistics Canada reported Thursday.

Comparatively, Canadian investors bought the largest amount of foreign securities in nearly 5 years, adding C$7.8 billion to their portfolios in March, following a first divestment in 10 months totaling C$2.112 billion in February.

The divestment in Canadian securities was focused on Canadian money market paper and bonds. Foreigners shed $1.5 billion worth of Canadian money market instruments in March, marking the third straight month of divestment.

Statcan: Wholesale Sales Rise 0.4% in March


OTTAWA (MNI) - Wholesale sales climbed 0.4% in March to C$48.7 billion, following a 1.6% rebound in February, Statistics Canada reported Thursday. In volume terms, sales were unchanged.

In the last 12 months, Canadian wholesalers have seen nine monthly increases contributing to 6.0% growth since last March.

Motor vehicle and parts sales posted the largest increase in dollar terms, up 2.4% to C$8.0 billion on higher sales of motor vehicles. Excluding this subsector, sales were unchanged for the month.

Sales in the building materials and supplies subsector advanced 1.7%, with all components of the subsector having higher sales.

US Jobless Claims Hold Steady At 370,000 In May 12 Week


--Initial Claims Down 19,000 From April 14 Employment Survey Week

WASHINGTON (MNI) - Initial claims for U.S. state unemployment benefits were higher than expected in the May 12 employment survey week, holding steady at 370,000 compared with expectations for a decline, the Labor Department reported Thursday.

Economists surveyed by MNI had forecast a small drop in initial claims for the May 12 week, with the median estimate at 365,000 -- down from the 367,000 level initially reported in last week's data.

The level of initial claims in the May 12 week is down 19,000 from the 389,000 level in April 14 employment survey week, suggesting some improvement.

US Data: States With The Largest Changes In Claims, NSA


WASHINGTON (MNI) - The following are the changes in unadjusted initial claims by state for the week ended May 5.

US$ CREDIT SUPPLY PIPELINE - May 17, 2012


WTD: 14,600 MTD: 63,175 MTD 2011: 76,425 YTD: 522,813 Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 5/17 BM Fannie Mae Benchmark Note 3 BAR/DB/UBS Talk T+21 area 5/16 300 Smiths Group Plc (Baa2/BBB+) 10 C/DB Will not grow 5/16 650 *Legg Mason (Baa1/BBB) 7 T+450 C/MS 144A Reg S, 101 CoC Put 5/16 500 *Rowan Companies (Baa3/BBB-) 10 T+320 C/RBC/WFS 5/16 250 *Cardinal Health (Baa2/A-) 5 T+120 BAML/JPM/MS 101 CoC Put 5/16 250 *Cardinal Health (Baa2/A-) 10 T+145 BAML/JPM/MS 101 CoC Put 5/16 750 *EBRD (Aaa/AAA) 5 MS-3

US News Events Calendar


--Meetings & Events of Interest to Subscribers

DATE GMT / EST EVENT

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17-May 1230/0830 Treasury Secretary Tim Geithner speaks on the state of the economy to the Greater Baltimore Committee after which he will participate in a moderated question and answer session, and then meeting with business leaders.

17-May 1600/1200 IMF Director of Research Olivier Blanchard speaks to the National Economists Club, in Washington.

17-May 1635/1235 St.

US$ CREDIT SUPPLY PIPELINE - May 17, 2012


WTD: 14,600 MTD: 63,175 MTD 2011: 76,425 YTD: 522,813 Investment-grade $250M+ Deals Announced/Launched(#)/Priced(*)/Pass(X) Date $MM Issuer/CR/Descr Mat Yield Lead(s) 5/17 BM Fannie Mae Benchmark Note 3 BAR/DB/UBS Talk T+21 area 5/16 300 Smiths Group Plc (Baa2/BBB+) 10 C/DB Will not grow 5/16 650 *Legg Mason (Baa1/BBB) 7 T+450 C/MS 144A Reg S, 101 CoC Put 5/16 500 *Rowan Companies (Baa3/BBB-) 10 T+320 C/RBC/WFS 5/16 250 *Cardinal Health (Baa2/A-) 5 T+120 BAML/JPM/MS 101 CoC Put 5/16 250 *Cardinal Health (Baa2/A-) 10 T+145 BAML/JPM/MS 101 CoC Put 5/16 750 *EBRD (Aaa/AAA) 5 MS-3