Jumbo tobacco trade from Reynolds American eyed

By John Balassi

NEW YORK, June 9 (IFR) - Summary of overnight events and Tuesday's main headlines: Dow Futures: -19, S&P Futures: -2.50, Nasdaq Futures: -10.75 CDX IG23: 0.0625bp wider, CDX HY23: 0.0625 point lower 10-yr UST yield: 2.382 +0.1bp; 30-yr UST yield: 3.114%, +0.9bp EUR/USD: 1.1271, -0.19% HEADLINES Prosecutors search Deutsche Bank (Xetra: 514000 - news) offices for client transaction evidence Deutsche Bank offices in Frankfurt were searched on Tuesday by German prosecutors seeking evidence related to client securities transactions, Germany's largest lender said.

HSBC to cut 50,000 jobs in quest for higher dividends HSBC pledged a new era of higher dividends on Tuesday, laying out plans to slash nearly one in five jobs and shrink its investment bank by a third to combat sluggish growth across its sprawling empire.

Greece delivers reform plan to EU, warns on cost of failure Greece handed its creditors new proposals on unlocking funds to keep the country from default, with Prime Minister Alexis Tsipras offering hope for a deal and warning the cost of failure would be enormous. U.S. rate prospects spook global stocks, dollar on defensive European shares followed Asian stocks lower on Tuesday as speculation intensified that the U.S. Federal Reserve could raise interest rates sooner than many expect, though this failed to give the dollar a significant boost.

Markets not pricing in enough Fed rate risk: PIMCO's Balls Financial markets could be taken by surprise by higher U.S. interest rates in the future, a top executive with global fund management firm PIMCO said on Tuesday. GLOBAL MACRO * Market opens risk off as thoughts of early Fed tightening spooks markets * EU receive new reform proposals from Greece, market expects more can kicking - Rts * Brent recovers to $63, as increased emerging market demand offsets oversupply * UK May BRC Retail Sales 0% (prev -2.4%) * CHF May Unemployment Rate 3.3% (prev 3.3%) * France April Budget Balance EUR -59.84bn (prev EUR -26.29bn) * CHF May CPI 0.2% m/m (exp 0.1%, prev -0.2%) and -1.2% y/y (exp -1.2%, prev -1.1%) * UK April Trade Balance GBP -8.561bn (exp GBP -9.9bn, prev GBP -10.705bn) * EZ Q1 GDP revised 0.4% q/q (exp 0.4%, prev 0.4%) and 1% y/y (exp 1%, prev 1%) US DATA * 09:00 NFIB Small Business Optimism Index (May) (prev 96.9) * 10:00 Wholesale Inventories (Apr) (mkt +0.1% m/m, prev +0.1% m/m) * 10:00 Wholesale Sales (Apr) (prev -0.2% m/m) * 10:00 JOLTS Job Openings Level (prev 4.994 mn) EVENTS * 13:00 Treasury auctions $24 bln 3-year notes HIGH-GRADE SUMMARY: Number of deals priced: 6 on Monday Total issuance volume: US$6.85bn USD HIGH-GRADE PIPELINE Reynolds American (NYSE: RAI - news) , Baa2/BBB-, mandated joint leads Citigroup (NYSE: C - news) and J.P. Morgan (Other OTC: MGHL - news) to arrange fixed income investor calls. Reynolds American secured an up to $9b bridge loan from Citigroup and J.P. Morgan for its Lorillard Tobacco merger agreement. IPALCO Enterprises, Baa3/BB+, asked J.P. Morgan and Morgan Stanley to arrange fixed income investor conference calls. Nonghyup Bank, rated A1/A, will start fixed-income meetings in Asia and Europe for a US dollar bond offering on June 1. Citigroup, Commerzbank (Xetra: CBK100 - news) , HSBC and Societe Generale (Paris: FR0000130809 - news) were mandated. Janus Capital Group Inc., Baa3/BBB-, asked Citigroup, J.P. Morgan and Wells Fargo (Swiss: WFC.SW - news) to arrange fixed income investor meetings. Kite Realty, Baa3/BBB-, mandated Citigroup, J.P. Morgan and Wells Fargo to arrange investor meetings Halliburton Co, A2/A, filed an S-3ASR automatic debt securities shelf registration. Proceeds were flagged for general corporate purposes including but not limited to repayment or refinancing of debt, financing of acquisitions, working capital, CAPEX and repurchases and redemptions of securities. (Reporting By John Balassi)