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What is driving FX market performance? Central bank policies or political risk? In this week's MUFG Global Markets FX Week Ahead podcast, Lee Hardman, Senior Currency Analyst, and Jack Greenslade from the Global Customer Marketing Group, discuss the latest central bank policy updates in Europe. Will the policy updates alter European currency performance ahead of the upcoming French elections? Listen in full here: https://bit.ly/4beh4tH

This week George G., MUFG Head of U.S. Macro Strategy, quickly reviews that first two weeks of June, which were macro event intense with various central bank meetings and inflation reports among other things. The more hawkish Fed event led to the strategy team pushing back their first Fed cut view to September from July. George believes the market becomes more technical-driven and less macro-focused into quarter-end. #MacroStrategy #Inflation #Fed http://ms.spr.ly/6045Y2BDT

George G., MUFG Head of U.S. Macro Strategy, gets us caught up on what has been happening in global macro and markets, with a focus on recapping the May NFP jobs report, which he believes wasn’t as strong as the headlines suggested, and that it is another report that demonstrates there are clearly macro divergences forming in various parts of the labor force. George also provides his thoughts on what to look out for in the CPI report, where we are waiting to see if the shelter costs ever come down enough to pull inflation readings lower. Meanwhile, the CPI report takes place ahead of the June FOMC meeting where we are keenly focused on the dots (interest rate estimates) and the terminal level estimates for the core PCE inflation reading published in the summary of economic projections (SEP) by the Fed. In addition, will Chair Powell sound dovish (and echo some of the same concerns that the strategy team has around the true health of the jobs market) or will Chair Powell be hawkish. Chair Powell has threaded the needle lately with his communications, but if markets deem that his message is hawkish, after a hawkish release of the dots, a major risk-off would be in store. http://ms.spr.ly/6045YvQrN #MacroStrategy #NFPJobsReport #CPIReport #Fed

Last week, I was delighted to join our Pride Alliance and Disability Works employee networks to reflect on #MentalHealthAwarenessWeek and to celebrate #PrideMonth with an artist-led painting workshop! Although I don’t consider myself an artist, it was a pleasure to step out of my comfort zone and embrace a new skill while connecting with my colleagues. As you might be able to tell from my picture, we painted the Mount Fuji, with pink sakura flowers with the five petals representing the five Japanese Banks in the #Sakura LGBTQ interbank network spearheaded by MUFG. I am always pleased to see the work our employee networks are doing to advance our diversity and inclusion agenda and to make MUFG a more inclusive workplace, where everyone has equitable access to opportunities.

MUFG EMEA is delighted to have won the Debt Deal of the Year award at the annual African Banker Magazine awards 2024 in Nairobi! This award recognises the €774m UKEF-backed loan to support FERA and the Republic of Senegal in its nation-wide road programme. MUFG EMEA acted as Sole Structuring Bank, Mandated Lead Arranger and Agent on the transaction. Ankit Khandelwal, Head of Africa – Sovereigns, DFIs and Blended Finance - MUFG EMEA, commented: “We are delighted this significant project has been recognised and we would like to extend our congratulations to all those involved in arranging and delivering this financing. “MUFG EMEA’s expertise in structing financing for complex projects and our in-depth knowledge of the region have supported in the overall success of this transaction. We are pleased to continue to support growth in Sub-Saharan Africa through innovative financing solutions, tailored to the needs of our clients” Well done to all involved!

MUFG EMEA’s Japanese Corporate & Investment Banking (JCIB) division congratulates Alcantara S.p.A., the Italian company that shares its name with the material they market and produce globally, on their new EUR100mn Sustainability-Linked Revolving Credit Facility (RCF). The RCF further strengthens Alcantara S.p.A.’s liquidity position and reiterates their commitment to sustainability with three environmental KPI’s including reducing specific Scope 1&2 Green House Gas emissions, increasing the percentage of recycled materials used in production, as well as reducing their production of waste. MUFG EMEA acted as Sole Lender and Sustainability Coordinator. Marco Piccinin, Director and Deputy Head of MUFG EMEA’s JCIB team in Italy, said: “We are proud to have partnered with Alcantara S.p.A. on their Sustainability-Linked RCF, which will, in part, help to support their sustainability-focused ambitions. “MUFG EMEA’s expertise in Sustainable Financing allowed us to support the client throughout the process, and, in close constructive cooperation with Alcantara S.p.A., outline a Sustainability-Linked RCF structure which aligns with Alcantara S.p.A.’s strategic direction and sustainability goals”.

Join us in celebrating our newly promoted Managing Directors. This promotion is a recognition of their achievements and contributions to #MUFG, and potentials as leaders who will pave the way for us to be "Committed to empowering a brighter future."

Congratulations to MUFG’s Global Aviation Finance team for their Deals of The Year wins at the 2024 Ishka: Aviation Finance Festival. These awards highlight MUFG’s expertise in aviation financing and highlight the team’s capabilities across regions and structuring type. Well done to all involved! Wins included: - Best Capital Markets Deal 2023: American Airlines $2.1bn Refinancing where MUFG acted as Joint Bookrunner - Best Middle East Africa Deal 2023: Macquarie AirFinance's $1.65bn term loan where MUFG acted as Mandated Lead Arranger and Underwriting Bank - Best Used Aircraft/ Engine Deal 2023: Willis Engine Structured Trust VII where MUFG acted as Joint Lead Structuring Agent and Joint Lead Bookrunner - Editor’s Choice 2023: AviLease’s acquisition of Standard Chartered’s leasing arm where MUFG acted as Mandated Lead Arranger and Bookrunner. As part of the conference, Alice Gondry, Director of Aviation Research at MUFG and ISTAT Certified Senior Appraiser, spoke on the appraisal methodology panel, discussing the lag between observed transaction prices and appraised values, the function of appraisers’ values, ESG and asset depreciation. Olivier Trauchessec, Head of Global Aviation, MUFG, commented: “Congratulations to all our clients on these noteworthy wins! We would like to thank them for their partnerships with MUFG and we look forward to strengthening relationships further. These awards demonstrate the expertise of all those involved and highlight our global capabilities.”

Join us in celebrating our newly promoted Managing Directors. This promotion is a recognition of their achievements and contributions to #MUFG, and potentials as leaders who will pave the way for us to be "Committed to empowering a brighter future."

MUFG looks forward to welcoming clients and partners at the ABS Global Conference 2024 in Barcelona, Spain. The conference is set to be a great opportunity for networking with securitisation professionals, hearing from expert speakers and connecting with peers to discuss the market. Whilst there, Jacob Binnema, Head of Public Securitisation, MUFG EMEA, will take part in a panel focused on ESG. The panel will look to compare activity across G20 countries, analyse approaches taken by issuers and discuss the regulatory frameworks in place to support progress. Additionally, Andrew Pierce, Head of Origination and Structuring, Securitised Products, MUFG EMEA, will be running a Spotlight session, titled “A securitisation transaction, simple but not easy”. This session looks at the various steps that are required to implement a securitisation for MUFG’s clients, and explores some lessons learned along the way. Charles Simon, Securitisation Director, MUFG EMEA, will also join a panel to discuss the impact of Basel 3.1 for banks. The session will look at regional banking models in the US, UK, EU and the impact on Capital Management and identifying emerging divergence. Come and visit us in room 122 - we look forward to seeing you there!