>>> Agrium beats by $0.24, beats on revs

Agrium beats by $0.24, beats on revs

Reports Q2 (Jun) earnings of $4.37 per share, excluding non-recurring items, $0.24 better than the Capital IQ Consensus Estimate of $4.13; revenues rose 6.2% year/year to $7.34 bln vs the $7.15 bln consensus.

Market outlook:
  • Favorable growing conditions in most major agriculture regions have boosted global crop production prospects in recent months. Growers in the U.S. Corn Belt have particularly benefitted from advantageous growing conditions...Grower margins are more sensitive to changes in crop prices than any other variable, so lower crop prices would result in lower per acre cash margins; however, strong crop yields will offset some of the crop price decline. While the financial benefit of applying crop inputs does not change significantly at current crop prices versus the prices earlier in the year, some precautionary applications of crop protection and plant health products may be impacted.
  • Wet conditions throughout many areas of North America delayed herbicide application early in the growing season. These conditions were conducive to disease development, which has supported fungicide demand; however, there have been some areas in the Northern U.S. and Western Canada that have continued to struggle to get equipment into wet fields. In general, we expect that growers will continue to promote optimal plant health through application of crop protection products and nutritionals in order to maintain yield potential.
  • Crop nutrient demand in the third quarter to date has been steady, despite lower crop prices. With 2013/14 logistical constraints fresh in the memories of buyers, the retail chain has sought to re-fill the empty North American supply chain following strong demand in the first half of 2014.

>>> Asian Update

Asian Market Update: AUD plummets as Australia unemployment rate rises to 12-year high

***Economic Data*** - (AU) AUSTRALIA JULY EMPLOYMENT CHANGE: -0.3K V +13.2KE; UNEMPLOYMENT RATE: 6.4% (12-year high) V 6.0%E - (AU) AUSTRALIA JULY AIG PERFORMANCE OF CONSTRUCTION INDEX: 52.6 V 51.8 (2nd consecutive expansion, highest since Nov 2013) - (NZ) NEW ZEALAND JUL QV HOUSE PRICES Y/Y: 7.6% (13-month low) V 8.0% PRIOR - (JP) JAPAN JUL TOKYO AVERAGE OFFICE VACANCIES: 6.2% V 6.5% - (JP) Japan investors bought net ¥897.4B in foreign bonds vs sold net ¥302.0B prior week; Foreign Investors bought net ¥94.9B in Japan Stocks last week vs bought net ¥204.5B in prior week - (JP) JAPAN JUL OFFICIAL RESERVE ASSETS: $1.28T V $1.28T PRIOR

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 -0.2%, S&P/ASX -0.1%, Kospi -0.4%, Shanghai Composite -0.1%, Hang Seng -0.5%, Sept S&P500 flat at 1,915

***Commodities/Fixed Income/Currencies*** - Dec gold +0.1% at $1,309, Sept crude oil +0.2% at $97.11/brl, Sept Copper +0.4% at $3.18/lb - (AU) Australia Port Hedland Jul Iron Ore shipments m/m: 36.08M tonnes v 33.6M prior - GLD: SPDR Gold Trust ETF daily holdings fall 2.4 tonnes to 797.7 tonnes (lowest since July 3rd) - SLV: iShares Silver Trust ETF daily holdings rise to 10,034 tonnes from 10,010 tonnes prior - (CN) PBoC to drain CNY20B in 14-day repos (4th consecutive drain); Drains net CNY20B this week v drained CNY11B prior (2nd week of drain)

***Market Focal Points/Key Themes*** - Regional indices remain largely in the red despite some modest relief in the US as investors turn increasingly more cautious on emerging markets amid continued geopolitical tensions. Recall NATO is maintaining that there is a high chance of Russia sending troops into east Ukraine under the pretext of humanitarian and peacekeeping mission, even though UN Security Council was overwhelmingly opposed to this incursion. Russian Pres Putin also announced a new round of counter-sanctions banning or limiting agricultural imports from countries that have sanctioned Russia over Ukraine.

- AUD traded down some 70pips against the greenback (within 5pips of 2-month lows) to $0.9280 after a particularly disappointing set of employment data from Australia. Jobless rate rose to a 12-year high of 6.4% - the first time above that of the US since 2007 - while employment change was a slight net negative against expected rise of 13K. Full-time component gained 14.5K, however total hours worked fell for the first time in 3 months with a 14.8M decline. Participation rate rose by a decimal to 64.8%, a 4-month high. Analysts said they would not view these somewhat contradictory datapoints as the beginning of broader deterioration and the data will not produce an RBA rate cut, but also noted the outside chance of a rate hike this year has also been squashed.

- Shanghai Composite is down again after an impressive run the last couple of weeks. Fitch warned speculation in the property sector could reemerge as a result of lifting of sector curbs and easing of credit. China-based Ctrip.com was one of the most notable movers afterhours following the announcement of an expanded partnership with Priceline.com that involves a $500M investment in the company.

- Stateside, Fed's Lockhart spoke with CNBC after US market close, noting it was still a bit early to pull stimulus and that 2H 2015 is appropriate timing for rate lift. Lockhart added inflation expectations are well anchored, while forecasting annual GDP to trend near 3% trajectory. CDC also revealed the results of suspected Ebola test at Mt Sinai hospital in NY, noting the patient in question does not have the virus.

***Equities*** US markets: - CST: To acquire General Partner of Lehigh Gas Partners LP for cash, stock valued at $85M; approves $200M buyback program (8% of market cap); +14.8% afterhours - CTRP: The Priceline Group and Ctrip expand partnership; Priceline to make $500M investment that could convert into up to 10% stake; +12.3% afterhours - MDCO: FDA approves Orbactiv (oritavancin), a new antibacterial drug to treat adults with skin infections; +10.8% afterhours - JACK: Reports Q3 $0.65 v $0.57e, R$348.5M v $344Me; +7.3% afterhours - FOXA: Reports Q4 $0.42 adj v $0.38e, R$8.42B v $8.01Be; +3.7% afterhours - CTL: Reports Q2 $0.72 v $0.64e, R$4.10B v $4.50Be; +2.9% afterhours - RIG: Reports Q2 $1.61 v $1.09e, R$2.33B v $2.27Be; +2.4% afterhours - AGU: Reports Q2 $4.34 v $4.10e, R$7.34B v $7.07Be; +2.1% afterhours - VMW: Approves $1B buyback program (2.3% of market cap); +1.7% afterhours - SYMC: Reports Q1 $0.45 v $0.42e, R$1.74B v $1.66Be; +1.1% afterhours - SN: Reports Q2 $0.23 v $0.27e, R$151.7M v $142Me, Q2 Production 1.859K mboe +164% y/y, Adj EBITDA $112.5M +160% y/y; +1.1% afterhours

- ICFI: Reports Q2 $0.57 v $0.58e, R$263.9M v $262Me; -0.9% afterhours - GMCR: Reports Q3 $0.99 v $0.87e, R$1.02B v $1.04Be; -1.6% afterhours - GPOR: Reports Q2 $0.07 v $0.17e, R$114.7M v $125Me; -3.9% afterhours - ANAD: Reports Q2 -$0.09 v -$0.09e, R$23.3M v $25.6Me, guides Q3 Rev -18 to -20% q/q (only 1 est.); -8.8% afterhours - RNDY: Reports Q2 -$0.06 v $0.09e, R$971.9M v $944Me; -9.5% afterhours - BWC: Reports Q2 $0.44 (adj) v $0.50e, R$686M v $785Me; -12.6% afterhours - BRKR: Reports Q2 $0.21 v $0.19e, R$457.4M v $458Me, Lowers FY14 EPS $0.78-0.81 v $0.87e (prior $85-0.88); -12.7% afterhours - THOR: Reports Q2 $0.43 v $0.44e, R$118.1M v $130Me; Cuts FY14 guidance; announces $30M share buyback (1.6% of market cap); -26.3% afterhours

Notable movers by sector: - Consumer Discretionary: Dongpeng Holdings 3386.HK +9.7% (H1 guidance); DeNA 2432.JP -7.8% (Q1 results); Kirin Holdings 2503.JP -3.8% (H1 results); Zensho Holdings 7550.JP -7.3% (FY14/15 guidance); Yamada Denki 9831.JP +4.1% (affordable smartphone sales plan); Megmilk Snow Brand 2270.JP +4.2% (Q1 results) - Consumer staples: Coca-Cola East Japan 2580.JP -7.1% (H1 results) - Financials: Haitong Securities 6837.HK -1.4% (July Op results); Mitsui Fudosan 8801.JP -3.0% (Q1 results); Fukuoka Financial 8354.JP -2.7% (Q1 results) - Technology: Square Enix Holdings 9684.JP +10.2% (Q1 results); Simplo Technology 6121.JP +3.1% (July op results) - Telecom: NTT 9432.JP +3.1% (Q1 results)

>>> US Notable after hours earnings movers

Notable after hours earnings movers: MCP +14.2%, DXCM +6.8%, JACK +5.5%, NSPH -36.6%, THOR -20.4%, RNDY -13.9%

Companies trading higher after hours following earnings/guidance:

MCP +14.2%, DXCM +6.8%, JACK +5.5%, MRIN +4.1%, RIG +2.4%, NLY +1.9%, CBMX +1.9%, MNGA +0.8%, SYMC +0.1%

Companies trading lower after hours following earnings/guidance:

NSPH -36.6%, THOR -20.4%, RNDY -13.9%, ANAD -8.8%, TNGO -8.7%, ELON -8.5%, COUP -7.6%, FTK -6.4%, CSOD -5.3%, BRKR -4%, GMCR -3.5%

RTR- Portugal banks to work for swiftest sale of new BES

Portugal banks to work for swiftest sale of new BES -association
LISBON Aug 6 (Reuters) - Portuguese banks will work together with the authorities for the swiftest sale of the new, healthy bank carved out of the troubled Banco Espirito Santo , the head of the Portuguese Banking Association (APB) said on Wednesday.
Fernando Faria de Oliveira told Reuters the intervention by the Bank of Portugal to rescue one of the country's largest lenders that involved an injection of 4.9 billion euros mostly in state loans, was positive considering BES's systemic importance.
As part of the plan, the state loaned 4.4 billion euros to Portugal's bank resolution fund, which became the formal owner of the healthy new Novo Banco, while the "bad bank", housing BES's exposures to toxic assets, will be wound down.
In an emailed reply to questions by Reuters, Faria de Oliveira also said banks have proposed to make an additional contribution to reduce the state loan to 3.9 billion euros.
Portuguese banks finance the resolution fund that was set up in 2012 and had only a few hundred million euros - not enough to rescue BES. Now the fund has to sell the bank to investors to repay the state. The loan has an incremental interest rate designed to encourage its repayment soon.
"The associated banks and the association manifest their readiness to collaborate with the authorities, namely with the resolution fund, for the success of the adopted measures and the swiftest sale of shares in Novo Banco," Faria de Oliveira said.
He added though that the banks had not been involved in the decision-making.
Concerns that banks may end up footing the rescue bill if they do not raise enough money for Novo Banco to repay the state in full hit their shares on Wednesday, causing the largest listed lender, Millennium bcp, to fall 15 percent.
But Faria de Oliveira was mostly upbeat on banks' prospects, saying the additional contribution to the fund should come from their improving performance.
He said that now that BES's insolvency has been avoided, the banking association expects the country's banks to successfully pass the European Central Bank's stress tests this year.
The ECB is putting the euro zone's 131 largest banks through an unprecedented health check before it becomes their supervisor in November.

>>> US Close Dow +0,08% S&P +0,00% Nasdaq +0,05%

Closing Market Summary: Stocks End Flat Despite Renewed Eurozone Concerns

The major averages spent some time on both sides of their flat lines on Wednesday before ending little changed. The S&P 500 settled on its flat line with six sectors finishing in the red, while the Russell 2000 (+0.3%) displayed relative strength throughout the session.

Although stocks finished on a flat note, the early indication suggested the market could be in for a rough day as economic data from the eurozone and domestic corporate news weighed.

On the economic front, Germany reported its second monthly decline in factory orders (-3.2% versus expected 1.0%; prior -1.6%), while the Italian economy slipped into recession following its second consecutive quarterly GDP contraction (-0.2%; previous -0.1%).

Back at home, two potential acquisitions were called off with 21st Century Fox (FOXA 32.33, +1.03) terminating its pursuit of Time Warner (TWX 74.24, -10.95) and Sprint (S 5.90, -1.38) withdrawing its offer for T-Mobile (TMUS 31.06, -2.85).

In addition, shares of Walgreen (WAG 59.21, -9.91) plunged 14.3%, which also contributed to the early weakness. The drugstore operator said it will acquire the remaining 55.0% stake in Alliance Boots that it does not currently own and that it will not move its corporate headquarters out of the United States.

Despite the opening weakness, the S&P 500 was quick to find support at its 100-day moving average. The index breached that level for the first time since mid-April, but was able to claw back to its flat line in short order. However, extending the rebound proved challenging as a handful of influential sectors like consumer discretionary (-0.3%), health care (-0.1%), industrials (-0.5%), and technology (-0.2%) weighed.

Notably, the industrial sector lagged throughout the session amid weakness in defense contractors and transport stocks. The PHLX Defense Index lost 1.0%, while the Dow Jones Transportation Average fell 0.6% to extend its week-to-date loss to 1.4%. Almost all 20 components of the bellwether complex posted losses with the lone bright spot appearing among airlines. Alaska Air (ALK 42.94, +0.22) and JetBlue (JBLU 10.92, +0.14) added 0.5% and 1.3%, respectively.

Elsewhere, the health care sector posted a slim loss, while biotech stocks displayed some intraday volatility. The iShares Nasdaq Biotechnology ETF (IBB 251.82, +0.18) ended just above its flat line after alternating between gains and losses during the session.

On the upside, yesterday's weakest sector—energy (+0.4%)—seized the lead at the open, but surrendered a significant portion of its gain during the afternoon.

Outside of energy, financials (+0.4%), materials (+0.7%), and consumer staples (+0.9%) were the only sectors to register gains. The materials space drew strength from mining stocks. The Market Vectors Gold Miners ETF (GDX 26.69, +0.59) gained 2.3%, whereas gold futures jumped 1.8% to $1308.30/ozt.

Treasuries held gains throughout the session, but the 10-yr note relinquished roughly two-thirds of its advance by the close. The benchmark 10-yr yield slipped two basis points to 2.47%.

Participation was a bit below average with fewer than 680 million shares changing hands at the NYSE floor.

Economic data was limited to the June Trade Deficit and the MBA Mortgage Index:
  • The U.S. trade deficit narrowed to $41.50 billion in June from an upwardly revised $44.70 billion (from $44.40 billion), while the consensus expected an increase to $45.20 billion 
    • According to the advance estimate for Q2 2014 GDP, the BEA assumed the trade deficit widened to roughly $45.10 billion in June. The fact that the deficit was much smaller than the BEA expected suggests that the new trade balance will contribute positively in the second estimate 
    • The goods deficit fell to $60.30 billion in June from $63.30 billion in May 
    • The services surplus remained at $18.70 billion 
    • Exports increased by 0.1% in June, while imports declined 1.2% 
  • The weekly MBA Mortgage Index rose 1.6% to follow last week's 2.2% decline 
Tomorrow, weekly initial claims (consensus 308K) will be released at 8:30 ET, while the Consumer Credit report for June (consensus $15.80 billion) will cross the wires at 15:00 ET.
  • S&P 500 +3.9% YTD 
  • Nasdaq Composite +4.3% YTD 
  • Dow Jones Industrial Average -0.8% YTD 
  • Russell 2000 -3.1% YTD

>>> Oi to continue pursuing asset sales this year

Oi to continue pursuing asset sales this year 

The sale of assets remains as a priority for Brazilian listed telecom Oi in 2014, said CEO Zeinal Bava, according to a Portuguese-language report from Valor Economico.

According to the executive, the company will continue to focus this year on the process of sale of non core assets, in order to extend its debt maturity and improve the funding costs.

In June, Oi agreed to sell 1,641 mobile phone towers for BRL 1.2bn (USD 528.9m), as reported. The sale of the towers will bring a non-recurring positive effect of BRL 1bn (USD 440.7m) to the company's EBITDA in the 4Q14, Bava told Valor.

The company’s net debt increased to BRL 46.2bn (USD 20.36bn) in June from BRL 30.3bn (USD 13.35bn) in March. Despite the positive impact of BRL 7.96bn (USD 3.5bn) from the capital increase carried out in May, Oi had to consolidate the BRL 21.28bn (USD 9.37bn) debt of Portugal Telecom, the newspaper added.


Source Valor Economico

(9to5) Paul Deneve brings YSL’s Europe President and Retail chief into the Apple

Paul Deneve brings YSL’s Europe President and Retail chief into the Apple fold

Apple has just made another significant hire from the global fashion industry: Yves Saint Laurent’s Europe President and Retail Head Catherine Monier. Sources say that Monier left the Paris, France-based fashion icon earlier this summer and that she started at Apple within the last few weeks. The sources added that former Yves Saint Laurent CEO Paul Deneve, who joined Apple last year to work on “Special Projects” under Apple CEO Tim Cook, was behind the hire and that Monier will work on Deneve’s team…

Monier began working at Yves Saint Laurent in 2012, and prior to working under Deneve in France, she worked in various executive retail and wholesale roles at several fashion brands in the Paris area.

Sources say that Deneve’s team at Apple has been working on new strategies for Apple’s official retail stores in order to make the stores more capable of selling and marketing fashion and wearable goods. The timing of Monier’s placement on this team is also no coincidence: Apple is gearing up to launch a fashion and fitness-oriented wearable band this fall, and Apple will need all the expertise in selling fashion goods that it can get its hands on prior to the launch.

The recent appointments of Deneve and Monier come as former Burberry CEO Angela Ahrendts transitions into Apple’s Senior Vice President of Retail and Online Stores position. As a trio of fashion industry executives, along with lesser-known players such as former Burberry Social Media Marketing Head Musa Tariq, Apple has the ability to combine acumen in fashion with its established expertise in sensor-packed gadgets with fitness and health-oriented software.

Apple and a Yves Saint Laurent representative have yet not responded to requests for comment.

WSJ : Tibco Reaches Out to Potential Buyers --> +7,93%

Tibco Reaches Out to Potential Buyers
Business Software Maker Has Approached Possible Suitors, Including Private-Equity Firms

Business-software firm Tibco Software Inc. TIBX +7.51% has been approaching potential suitors, including private-equity firms, according to people familiar with the matter.

The early-stage sale talks aren't part of a formal process and are being spearheaded by Tibco Chief Executive Vivek Ranadivé, the people said.

The sale talks come after months of difficulties for Tibco. The company has fallen short of earnings expectations and its Spotfire data software has lost ground to rivals. Its stock price had fallen 14% this year through Tuesday's market close, giving it a stock-market value of $3.2 billion.

In afternoon trading, Tibco shares were up 11% at $21.37.

The company's sliding stock price drew the attention of Praesidium Investment Management Co., owner of more than 3% of Tibco's stock. In a letter to Tibco's board in June, Praesidium said it would share with other stockholders and potential acquirers its analysis for ways the Tibco board can boost the stock price.

Praesidium—Tibco's fourth-largest shareholder, according to S&P Capital IQ—said in its letter it sees "a substantial opportunity to unlock value" in "a company that is currently falling far short of its significant potential."

Tibco last week amended its executive change-in-control and severance plan, which are sometimes known as golden parachutes. The new plan allows key executives to receive a more generous exit package should Tibco be acquired. In a filing, the company said its compensation committee believes the changes "more closely align with current market practices and create appropriate incentives for our management team."

>>> Valeant Pharma: ISS recommends Allergan (AGN) shareholders call a special me

Valeant Pharma: ISS recommends Allergan (AGN) shareholders call a special meeting of shareholders; ISS comments on Valeant's 'enormous success over the tenure of its current CEO' 

Valeant Pharmaceuticals International and Pershing Square Capital Management, L.P. commented on ISS recommendation in support of Pershing Square's effort to call a special meeting of Allergan (AGN) shareholders. Pershing Square is seeking to call a special meeting to address a number of important matters, including the removal of six incumbent directors from the Allergan Board, which has failed to do any reasonable investigation of the Valeant offer.
* ISS commented: "Many of the initiatives [Allergan] has announced, moreover—reducing R&D and SG&A expense, looking at acquisitions—are strategies Valeant has used to enormous success over the tenure of its current CEO."
* "Allergan bylaws are far more restrictive than any of the comparator companies the board apparently reviewed, with no discernable advantage for Allergan shareholders."

(MergerMarket) Gannett shut out other interest in Cars.com

Gannett shut out other interest in Cars.com
Gannett's (NYSE:GCI) negotiated price and terms for Cars.com is understood to have headed off continued unsolicited interest from other parties.

Yesterday, Gannett announced that it paid USD 1.8bn for the 73% it did not own of Classified Ventures, the parent company of used car listings provider Cars.com.

The deal values the total company at USD 2.5bn. Classified Ventures is co-owned by Tribune Media Company (OTC:TRBAA), which owns 28%, The McClatchy Company (NYSE:MNI), Graham Holdings Company and A. H. Belo Corporation (NYSE:AHC).

The Wall Street Journal reported on 9 March that the consortium was exploring a sale of Cars.com, seeking a valuation between USD 2.5bn and USD 3bn. At the time, a Bloomberg report indicated that Cox Enterprises and Apax Partners, owners of similar assets in other markets, were interested in a purchase.

In a statement to this news service, John Dyer, Cox Enterprises’ president and CEO, said: “We're committed to providing the world's largest digital automotive marketplace, and we will continue to play a critical role in the industry for dealers, manufacturers and car shoppers.”

The terms of the sale allow the sellers to continue to purchase Cars.com’s listings at preferred wholesale rates for five years in their local markets.

Gannett simultaneously announced the purchase and the spinoff of its newspaper assets, which create separate broadcast and publishing entities. Cars.com will be absorbed by the broadcast company. Gannett’s current market cap is around USD 7.7bn.

Though Gannett stock was up by 7% in premarket trading on news of the publishing spinoff, consistent with the rewards other companies have had for separating strong, growing broadcast operations from weakening print assets, the shares opened with only a 3% gain. The stock closed 1.3% lower on the day, at USD 33.87.

One industry banker said Wall Street was reacting negatively to the fact that Gannett paid so much for Cars.com, a figure he estimated to be 21 times cash flow. The banker said that observers perceive the price as “extraordinarily” expensive. Cars.com is a very attractive asset, said the banker, but added that “whatever multiple expansion there should have been on the split was given back in paying that kind of premium.”

During a conference call with analysts and investors, Gannett CEO Gracia Martore indicated that the company made a different calculation. She said that based on "the 2014 pro forma incremental EBITDA, estimated, we're paying USD 1.8bn and we're getting about USD 155m in incremental estimated EBITDA for 2014. And if you do that math, it implies a multiple of 11.7 times."

A station broker said that Gannett's move was not a reaction to the frenzied M&A environment for TV stations. Rather, this broker said, its decision to separate its newspapers from its broadcast outlets was probably inevitable as soon as the company announced its USD 1.5bn acquisition of Belo Corporation in June 2013. That USD 2.25bn deal, which included Belo's 20 TV stations, nearly doubled the size of Gannett's portfolio.

The broker pointed out that with 43 stations and 25% US audience penetration, Gannett had little room to grow within the constraints of regulation prohibiting cross-ownership of newspaper and television assets. This left a spin as the only reasonable way to continue making acquisitions, the broker said.

In the largest markets that Gannett is in, there are few tuck-in acquisition opportunities, the station broker and a banker said. Gannett may therefore be looking to add stations in some of its mid-sized and smaller markets.

Gannett declined requests for comment.