(BFW) Glaxo May Begin Testing ‘Promising’ Ebola Vaccine in Humans

Glaxo May Begin Testing ‘Promising’ Ebola Vaccine in Humans
2014-08-11 15:16:09.812 GMT


By Oliver Staley
Aug. 11 (Bloomberg) -- GlaxoSmithKline is developing an
Ebola vaccine and is discussing starting phase 1 trials on human
subjects with regulators and the World Health Organization, the
company said in an e-mailed statement.
* Trials may begin this year.
* Animal trial results have been “promising,” according to
GSK statement
NOTE: GSK acquired the vaccine after buying Swiss-based biotech
company Okairos last year NOTE: Spain Imports Ebola Drug to
Treat Priest as Ethicists Weigh Use

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To contact the reporter on this story:
Oliver Staley in London at +44-20-3216-4369 or
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Robert Valpuesta, Kristen Hallam

WSJ : Europe's Investment Banking Recovery Isn't Sustainable

Europe's Investment Banking Recovery Isn't Sustainable
European Banks Have Only Stabilized Their Trading Businesses

Don't call it a comeback.

Europe's investment banks turned in a surprisingly good second quarter performance, particularly in the closely watched fixed-income trading arena.

But although they have regained some of the market share they lost to U.S. rivals in recent years, this doesn't yet look a sustainable turnaround.

U.S. banks had set a weak tone. JPMorgan's JPM -0.07% 17% fall in revenues from fixed-income, currencies and commodities trading led an average industry decline of 9% in the second quarter versus the same period last year. This created expectations of lackluster results in Europe.

However, Deutsche Bank DBK.XE -0.31% —the most global of Europe's investment banks—reported flat revenues and others followed with revenue gains. BNP Paribas BNP.FR -0.35% turned in a 22% top-line increase. On average, nine European banks saw fixed income trading revenue grow 2.5%, according to Nomura. Stripping out big declines at Royal Bank of Scotland RBS.LN -1.41% and Barclays, BARC.LN +1.24% which took decisions later than peers to exit big chunks of these markets, Europe posted an average rise of 9%.

The results went against the script of falling volatility, less investor trading and low interest rates suppressing sales and margins. Overall, European banks regained 2 percentage points of global market share in fixed income trading from U.S. banks after three straight years of losses, according to Citigroup. C +0.04% They now have 47% of the global market, excluding Citi's own business.

But behind the positive numbers are a few oddities. First, the second quarter last year was particularly poor for Europeans in general and the French in particular—hence BNP's stellar turn. U.S. fixed-income trading revenues rose 12% on average in the second quarter of 2013, according to Nomura, while European banks' top lines shrunk by an average of 13%.

Second, this year saw a flood of new European bond issues, which helped promote secondary trading as investors rejigged portfolios. Europe had its best ever first half for high-yield deals and its best first half for three years in investment-grade debt, according to Dealogic. In subordinated capital bonds for banks and insurers, Europe did more than one-and-a-half times the volume of the rest of the world.

That is part of a continuing shift in European corporate fundraising, from a heavy reliance on bank balance sheets to more direct capital markets activity. This has, however, been playing out in slow motion since the creation of the euro at the end of the last millennium. A record half doesn't presage a quantum leap forward.

Also those tailwinds have dropped off in the third quarter. Corporate bond issuance was down 14% year-over-year in July, while volatility in currencies and European rates has also been further damped.

For Deutsche Bank, the last European determined to challenge on the global stage, market-share gains this half have put its fixed-income trading business on an equal global leadership footing with JPMorgan, according to Citigroup. But that came with an increase in balance sheet leverage at the German bank, which must reverse.

Elsewhere in Europe, the decent trading results at best suggest that banks who are stripping back to niche strategies—like BNP Paribas, Credit Suisse CSGN.VX -0.33% and UBS UBSN.VX +0.57% —have made viable choices, according to Deutsche Bank's analysts.

European banks have stabilized their trading businesses. But it is too soon to get excited about a real recovery

>>> Chiquita Brands(CBQ) Receives offer to be acquired at $13/shr by Cutrale Gro

Receives offer to be acquired at $13/shr by Cutrale Group And Safra Group (valued at ~$613M) 
- The proposal has been conveyed to Chiquita in a letter to Kerrii Anderson, Chairwoman of the Chiquita Board of Directors and Edward Lonergan, Chiquita President and Chief Executive Officer. Proposal also offers a superior valuation compared to Chiquita's historical trading multiples. The proposed price, including the assumption of Chiquita net debt, represents an 11.8x multiple of Chiquita's last twelve months reported Adjusted EBITDA." The proposed offer is not subject to any financing condition

>>> US Gapping down

Gapping down In reaction to disappointing earnings/guidance: DF -8.3%, DVR -7.2%, EVEP -2.4%, GOGO -1.7%, PCLN -1.4%, AU -1.2%, SSL -0.8%, TECH -0.5%.

M&A news: RDS.A -0.5% (Blackstone (BX) near deal for 50% Shell (RDS.A) Haynesville shale, according to reports).

Select EU financial related names showing weakness: RBS -2.4% (to sell international unit of private bank, according to reports), DB -1.5%, HSBC -1% (to keep private bank, according to reports), SAN -0.8%, CS -0.7%.

Other news: VRTV -5% (Baupost Group discloses 14.06% passive stake in 13G filing), Z -2% (ticking lower following cautious Barron's mention), ARMH -1.4% (still checking).

Analyst comments: TWOU -8.7% (downgraded to Neutral from Buy at Goldman), CEQP -1% (downgraded to Market Perform from Outperform at Wells Fargo), TDW -0.9% (downgraded to Accumulate from Buy at Global Hunter Securities), THOR -0.6% (downgraded to Market Perform from Outperform at Northland ), KING -0.4% (downgraded to Sector Perform from Outperform at Pacific Crest).

>>> US Gapping up

Gapping up In reaction to strong earnings/guidance: WBAI +6.4%, TTM +5.8%, MFRM +5.1%, RGEN +4.1%, ARMK +3.5%, BITA +2.8%, MPAA +2.3%, USEG +2.3%, HE +1.6%, TSM +0.8%, ADHD +0.6%, ZOES +0.5%.

M&A news: KMI +20.1% (to purchase KMP, KMR and EPB; 2015 KMI dividend to increase to $2 per share), KMR +34.6%, EPB +30.5%, KMP +27.1%.

Other news: PIP +42.9% (Delaware Court of Chancery orders SIGA to pay PharmAthene lump sum expectation damages), DRL +28% (disclosed settlement with the Treasury Department), MNKD +25% (SNY and MannKind announce global licensing agreement for Afrezza rapid-acting inhaled insulin), HGSH +21.5% (will be engaged in large-scale Shanty Areas rebuilding Projects with budgeted investment over $1.3 billion), BIOD +10.5% (concentrated Insulin BIOD-531 demonstrates superior glucose control following standardized meals vs marketed insulins in a Phase 2 Clinical Trial in patients with Type 2 Diabetes), TKMR +7.2% (continued momentum on ebola exposure), BCRX +5.9% (may be related to MNKD news, biotech peer), OXGN +5.7% (maybe related to MNKD news, biotech peer), KNDI +3.6% (may be related to TSLA upgrade, also Shanghai strong overnight), NQ +2.5% (cont volatility), PLUG +2.3% (continued momentum), BYI +2.3% (may be related to acquisition in the space), JD +2.3% (Shanghai strong overnight), MY +2.2% (stong Shanghai overnight), RIO +1.8% (strong Chinese markets overnight), NOK +1.6% (launches new MSFT phone), HLF +1.5% (Capital Research Global Investors discloses 10.1% passive stake in 13G filing), JKS +1.3% (opens solar module factory in Cape Town, South Africa), CCL +1.2% (cruised data released Friday), PVG +0.9% (provides Q2 updates on Brucejack Project; increases in Valley of the Kings mineral grade).

Analyst comments: ACHN +8% (upgraded to Outperform from Market Perform at Wells Fargo, upgraded to Overweight from Neutral at Piper Jaffray), KKD +4.6% (upgraded to Outperform from Neutral at Wedbush), CDNA +4.3% (initiated with a Buy at Mizuho, initiated with a Outperform at Leerink Partners), TSLA +2.7% (upgraded to Buy from Hold at Deutsche Bank), CHUY +2.4% (upgraded to Outperform from Mkt Perform at Raymond James), OAS +2% (upgraded to Buy from Neutral at Sterne Agee), GNC +1.9% (upgraded to Outperform from Neutral at Credit Suisse ), FMS +1.3% (upgraded to Buy from Hold at Societe Generale ), SD +0.9% (upgraded to Reduce from Sell at KLR Group), FCX +0.8% (upgraded to Buy from Hold at Argus), NFLX +0.7% (target raised to $527 at Topeka Capital Markets)

>>> Fossil: FOSL fuel from KORS and more - 2Q on tap - Topeka (104.37)

Fossil: FOSL fuel from KORS and more - 2Q on tap - Topeka

Topeka reiterates their Buy rating on FOSL ahead of its 2Q report (Tuesday afternoon), especially given the YTD sell-off in the shares. Last week, Michael Kors (KORS-$78.75:Buy) once again cited strength in its watch and jewelry business, with watches continuing to be driven by trends such as colored dials, and leading KORS to expand the number of watch and jewelry shops. They continue to think smartwatch fears are overdone and that the category continues to thrive, especially on strength in brands.

>>> Mattress Firm guides Q2 above consensus; raises FY14 outlook

Mattress Firm guides Q2 above consensus; raises FY14 outlook

  • Co reported preliminary net sales and adjusted EPS for the second fiscal quarter ended July 29, 2014.
  • Net sales for the second fiscal quarter increased 35.5% to $410 million (Capital IQ consensus $384 mln), reflecting comparable-store sales growth of 9.7% and the addition of new and acquired stores. The Company expects second fiscal quarter earnings per diluted share on a generally accepted accounting principles basis of $0.39 to $0.42, and EPS on a non-GAAP adjusted basis, excluding ERP system implementation costs, acquisition-related costs and impairment and severance charges, is expected to be between $0.58 and $0.61 per diluted share for the second fiscal quarter, Capital IQ consensus $0.49.
  • Co raises FY14 revenue guidance to $1.545-1.585 mln (Capital IQ consensus $1.53 bln)
  • Raises Adjusted FY14 EPS guidance to $2.03-2.13 (Capital IQ consensus $1.95)

>>> Dean Foods misses by $0.08, beats on revs; guides Q3 EPS below consensus; wi

Dean Foods misses by $0.08, beats on revs; guides Q3 EPS below consensus; withdraws full year guidance

Reports Q2 (Jun) loss of $0.14 per share, $0.08 worse than the Capital IQ Consensus Estimate of ($0.06); revenues rose 7.4% year/year to $2.39 bln vs the $2.32 bln consensus.
  • Co issues downside guidance for Q3, sees EPS of ($0.15) - ($0.05) vs. $0.26 Capital IQ Consensus Estimate.
  • Dean Foods' share of U.S. fluid milk sales volume increased to 35.9% during the second quarter from 35.7% in the first quarter of 2014. The Company continues to make solid progress against its accelerated cost reduction agenda. Since announcing in the first quarter of 2013 its intention to close eight to twelve (10-15%) of its manufacturing facilities by mid-2014 the Company has closed twelve plants. Four of the twelve closures occurred in June and July of this year. As we move beyond our accelerated cost reduction agenda, we expect to return to our normal optimization activities.
  • Guidance: "The balance of the year appears rocky, with a continued unpredictable and volatile dairy commodity environment. That makes it difficult to provide guidance beyond the immediate quarter...Therefore for the time being, we are going to provide specific guidance only for the next quarter, where our visibility is better. In this case, we expect an adjusted diluted net loss of between $0.05 and $0.15 per share in the third quarter. While we hope to see a more positive environment later in the year, the uncertainty surrounding whether or when that will occur leads us to withdraw our full year guidance for the present time....We also expect to be at the low end of our prior 2014 capital expenditure guidance of $150-175 million."