(BFW) Lufthansa Says It Won’t Use Own Pilots for ‘Jump’ Project

--> Learning from Air France...
Lufthansa Says It Won’t Use Own Pilots for ‘Jump’ Project
2014-09-25 14:07:23.795 GMT


By Brian Lysaght
Sept. 25 (Bloomberg) -- Lufthansa pilots did not agree to
flying longer w/out extra pay.
* Lufthansa ‘jump’ project comprises as many as 14 A340
aircraft
* Earlier: Lufthansa Faces More Strikes as Pilots Say Talks
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>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: MHR +11.7%, RLGT +11.5%, JBL +4.3%, WOR +3.2%, SCHL +0.5%

M&A news: LPDX +62.4% (to be acquired by LabCorp (LH) for a purchase price of $5.25 per share in cash), VOD +1.1% (cont M&A spec with ATT (T))

Other news: RNN +13.2% (receives FDA orphan drug designation for RX-3117 in treatment of pancreatic cancer), AIXG +13.1% (receives large multiple tool order from China -- one of the largest orders the Company has ever received), ECTE +12% (provides update; workforce reduction due to the suspension of operations comprised ~70% of Echo's workforce), CYBR +11.3% (cont momentum higher following yest's IPO), XGTI +7.8% (announced purchase agreements for up to $16 mln with Lincoln Park Capital Fund), LXRX +7.4% (still checking), CREG +5.7% (cont strength following yest's 29% move higher), HAS +4.5% (co and Discovery Communications (DISCA) announced The Hub Network will become Discovery Family Channel effective Oct 13, 2014), HAWK +3.8% (favorable commentary on Wednesday's Mad Money), MNKD +3.3% (announced closing of global licensing agreement with Sanofi (SNY)), VRX +2.4% (co's unit Bausch + Lomb and Nicox's glaucoma candidate VESNEO meets primary endpoint in Phase 3 studies), GPRO +2.1% (still checking, HTC released video yesterday -- revealing GoPro-like camera), XXII +1.9% (granted meeting with FDA to advance development of a potential modified risk cigarette), FLEX +1.3% (following JBL results), MU +1% (trading higher ahead of eanings tonight)

Analyst comments: TC +2.2% (upgraded to Sector Perform from Sector Underperform at Scotia Capital), JD +2% (initiated with a Outperform at Macquarie), TI +2% (reinstated with a Overweight at JP Morgan), SLB +0.9% (upgraded to Outperform from Sector Perform at Iberia)

>>> BoE Gov Carney: Reiterates time for rate hikes is approaching, there is no p

BoE Gov Carney: Reiterates time for rate hikes is approaching, there is no preset course for rates 
- speech from Institute and Faculty of Actuaries event 
- Well aware that low rates could fuel risk in financial and housing markets, and that financial markets could misprice risk. 
- Rate rise likely to be limited and gradual due to weak export demand and high public and private sector debt. - Rates will be materially lower than in the past.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: FUL -15.8%, OMN -13%, OFIX -0.6%, (provides finance and restatement update; Doug Rice to become interim CFO)

Select metals/mining stocks trading lower: GFI -3.6%, AU -3.1%, BHP -1.8%, GOLD -1.7%, RIO -1.4%, SLV -1.1%, GDX -0.7%

Select oil/gas related names showing early weakness: STO -2.5%, BP -1.3%, RDS.A -1%, PBR -1%, SDRL -0.7%, TOT -0.6%, RIG -0.5%

Other news: PCRX -6.1% (announces receipt of FDA warning letter ), NBG -5% (still checking), GDOT -2% (modestly pulling back from yesterday's advance), ARCW -1.9% (co rescheduled earnings release date and conference call to October 8, 2014), GTI -1% (cont weakness), WPC -0.8% (prices 4 mln shares of common stock at $64.00 per share)

Analyst comments: SAP -1.2% (hearing Berenberg suggesting potential revision to current outlook to account for lower margin acquisitions), TDW -0.5% (downgraded to Hold from Accumulate at Tudor Pickering), YHOO -0.4% (downgraded to Sector Perform from Outperform at RBC Capital Mkts), MMC -0.4% (downgraded to Neutral from Outperform at Macquarie)

BGR - Apple admits to ruining your new iPhone 6, says iOS 8.0.2 is coming soon

Trying to fix some of the existing issues in iOS 8, Apple on Wednesday released a fast iOS 8.0.1 update that came with some unexpected surprises: iPhone 6 and iPhone 6 Plus users who have installed it have quickly discovered their devices would no longer connect to their carrier of choice, and that the Touch ID sensor wasn’t functioning anymore. Since then, Apple has pulled the iOS 8.0.1 update, publishing a special support page on its website, which reveals that the company is looking to release iOS 8.0.2 in the coming days to fix the new issues.

“We have a workaround for you if you have an iPhone 6 or iPhone 6 Plus and you lost cellular service and Touch ID functionality today after updating to iOS 8.0.1,” the company said. “You can reinstall iOS 8 through iTunes by following the instructions [at the source link] below. We are also preparing iOS 8.0.2 with a fix for the issue, and will release it as soon as it’s ready in the next few days.”

On the same page, Apple also published a quick iOS downgrade guide that should help users move from the faulty iOS 8.0.1 update back to iOS 8.0, in order to be able to still use cellular service and Touch ID on the iPhone 6 and iPhone 6 Plus while Apple is working on releasing iOS 8.0.2.

Apple also warns the Health app will not work in iOS 8 after the downgrade, but should be fixed in iOS 8.0.2.

Just like with any iOS downgrade, the procedure requires connecting the device to a Mac or PC with iTunes installed, and can’t be performed directly on the device – the full set of instructions is available at the source link after this post.

(Makor) Antitrust Issues of Potential SABMiller - AB InBev Deal

Antitrust Issues of Potential SABMiller - AB InBev Deal
Summary
The beer industry’s consolidation has accelerated over the past few years, with the big four - AB InBev (BUD:US), SABMiller (SAB:LN), Heineken (HEIA:NA) and Carlsberg (CARLB:DC) – now producing well over half of all beers and lagers sold globally.
SAB’s advances have recently been rejected by HEIA, leaving SAB vulnerable to a takeover by BUD. A merger between the
world's two biggest brewers would put them in control of about a third of global beer supply and almost half of global beer profits.
Although it sounds like a tall order, such a deal is doable within a timeframe of about a year.
The two companies would complete each other in many regions. SAB dominates in a number of African countries where BUDhas almost no presence, and also has strong market position in Australia through Foster's, whereas BUD is a minor player.
Moreover, SAB has quasi-monopolies in Colombia, Peru, and Ecuador, where BUD has been trying to break in. On the other
hand, BUD is a market leader in Brazil, as well as in Mexico through Modelo, and in Canada through Labatt.
SAB and BUD overlap in the U.S. and China, the two most important beer markets in the world. This is where antitrust issues are likely to arise.
In the U.S., BUD is the largest beer manufacturer, accounting for a 47% share of total volume sales in 2013. MillerCoors is
second with about 25% of the U.S. market. MillerCoors is 58% owned by SAB and 42% by Molson Coors (TAP:US). SAB would
probably have to exit the joint venture in order for a merger with BUD to be approved in the U.S.
In China, a SAB-BUD merger would combine the number one and number three players. SAB is in a joint venture with
government-backed China Resources Enterprise in the brewer of Snow Beer, the number one selling beer in the world and the most popular brand in China. China Resources Snow Breweries had a beer volume share of 22% in 2012, while BUD disclosed a 13.4% market share. BUD might have to dispose of or end its partnerships with a number of smaller local brewers in order to obtain Chinese antitrust clearance.
Despite the substantial regulatory risk, we would ascribe an ePOD© of 85% if an agreed bid did materialize.

(Makor) Spec. Sit. ZALANDO IS NO BABA - BUY ASOS, YOOX

Special Situations: Zalando’s IPO

No BABA; re-iterating BUY rec on Asos and Yoox  

ASC LN: GBP 19.81; YOOX IM: Eur 17.15

September 25, 2014

Zalando is going to be another high profile internet IPO.  Zalando is an on-line fashion retailer. It competes directly with Yoox, Net-a-porter.com, and Asos, and of course a bunch of other net retailers, not to mention the websites of brand names themselves. The placing for the shares is about to finish, and there is no doubt that the offering will be oversubscribed and the IPO very successful.  Trading should start October 1.  While we were very positive on Alibaba, we are more prudent on Zalando.  Firstly, Zalando does not make any money, whether at the EBITDA, cash flow, or EBIT level.  This is very different from Alibaba for sure, but also from competitors Yoox and Asos which have been profitable from their IPOs.  In addition, the stock looks overpriced.  As it makes no money, we had to look at the gross margins being generated.  These are around 40% for Zalando, compared to almost 50% for Asos and 38% for Yoox.  However, Zalando is being priced on a EV/Sales multiple of 1.9x (and probably over 2x on the first day of trading) compared to 1.3x and 1.6x for Asos and Yoox respectively. We would advise investors that do subscribe to Zalando to “flip” it on the first day, and switch into Asos and Yoox.  We also re-iterate our BUY rating on Asos and Yoox.  The shares have corrected heavily and the Zalando IPO should re-focus the market on these two names.

FULL REPORT ATTACHED