ECB's Draghi: ECB to remain particularly focused on money market development; net capital inflows and lower excess liquidity reflect the improving confidence of financial markets - Reiterates ECB is prepared to consider using all of its monetary policy instruments. - Public backstops for bank asset quality reviews (AQR) must be in place before ECB concludes its assessment. - Strong efforts to repair bank balance sheets and enhance transparency have already been undertaken in all euro area countries.
Senate Majority Leader Reid (D-NV): Skeptical of the House plan for a 6 week debt ceiling increase; still plans to move forward on the vote tomorrow that would increase the debt ceiling to Jan 2015 - Pleased to see some GOP members come to the clean debt ceiling increase proposal
Seadrill Partners Agrees to acquire the tender rig T-16 for $200M; sees accretion, may raise distribution
- Entered into an agreement to acquire the company that owns the tender rig T-16 from Seadrill Limited ("Seadrill") for a total purchase price of US$200M, less approximately US$93M of debt outstanding under the credit facility secured by the T-16. Seadrill Partners will acquire the company that owns the T-16 in exchange for approximately US$107M in unregistered common units that Seadrill Partners will issue to Seadrill Limited.
- The number of common units to be issued to Seadrill Limited will be 3,310,622, at a price of US$32.29 which is based on the ten-day volume weighted average closing price ending on October 10, 2013 for Seadrill Partners' common units. The transaction is expected to close within October 2013
- Acquisition will be accretive to unitholders and has recommended that, upon completion of the acquisition, the Board of Directors of Seadrill Partners consider an increase in the quarterly cash distribution of between US$0.025 and US$0.03, an approximate 7% increase (annualized increase of between US$0.10 and US$0.12 from the current annualized distribution rate of US$1.67 per common unit), which would become fully effective for the distribution with respect to the quarter ending December 31, 2013..
Gapping down
In reaction to disappointing earnings/guidance: EOPN -27%, SGI -14.4%, GPS -5%, ZAGG -3.2%, MU -2.7% (also downgraded to Underperform from Market Perform at Wells Fargo), WFC -1.5%, POT -0.8%, LRN -0.4%, (light volume).
Select ag/potash stocks trading lower following POT guidance: IPI -1.4%, MOS -1.4%, AGU -0.8%, .
A few MU peers are trading modestly lower: NVDA -2.5% (downgraded to Underperform from Neutral at Macquarie), SNDK -0.8% (following MU results), INTC -0.7% (Intel downgraded to Neutral from Outperform at Macquarie)
Other news: ECYT -27.4% (Endocyte announces DSMB recommendation for amendment to informed consent given that vintafolide monotherapy arm is unlikely to be declared superior to docetaxel), ASTM -16.7% (announces one-for-twenty reverse stock split), DOW -5.9% (Dow Chemical signs definitive agreement under which Dows global Polypropylene Licensing & Catalysts business will be divested to W. R. Grace for a sale price of $500 mln), DEG -5.3% (still checking), NPSP -4.5% (following cautious comments on MadMoney), NMFC -3% (commences primary offering of 3,000,000 shares of common stock and secondary offering of 3,000,000 shares of common stock on behalf of selling stockholder), ONNN -2.9% (amends and increases existing revolving credit facility to $800 mln ), ISIS -2.7% (following cautious comments on MadMoney), LXP -2.3% (announces public offering of 10 mln common shares), ACAD -1.7% (following cautious comments on MadMoney), STI -1% (SunTrust Banks announces settlement of legacy mortgage matters that will impact Q3 results by $0.33 ), TSL -0.9% (statement on antitrust litigation from Energy Conversion devices; believes lawsuit is without merit ), BPL -0.3% (Buckeye Partners prices upsized offering of 7.5 mln LP units at $62.61 per unit; the offering was upsized by 1 mln units), GORO -0.2% ( announces resignation of CFO Brad Blacketor and promotion of Joe Rodriguez to CFO).
Analyst comments: LLY -4.4% (downgraded to Underperform from Hold at Jefferies), SYNA -2% (ticking lower, downgraded to Neutral from Overweight at JPMorgan), MYGN -1.9% ( initiated with a Reduce at Sun Trust Rbsn Humphrey), LTD -1.1% (light volume, downgraded to Neutral from Outperform at Credit Suisse), GLW -1.1% (downgraded to Neutral from Overweight at Piper Jaffray), DPS -1% (downgraded to Market Perform from Outperform at Wells Fargo), CHK -1% (downgraded to Hold at Stifel),
Wells Fargo beats by $0.02, misses on revs
Reports Q3 (Sep) earnings of $0.99 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.97; revenues fell 3.5% year/year to $20.48 bln vs the $20.96 bln consensus.
Top Points:
* The Company's net interest margin declined 8 basis points from the prior quarter to 3.38 percent (expectations were for a low-mid single digit decline). * Co reproted Q3 residential mortgage originations of ~$80 bln versus guidance of ~$80 bln (At Barclays Conference on Sep 9).
Net Interest Income/Noninterest income/provisions
* Net interest income in third quarter 2013 at $10.7 bln, essentially unchanged from second quarter 2013. Net interest income benefitted from available-for-sale (AFS) securities portfolio purchases, which consisted largely of agency mortgage-backed securities, lower funding costs, organic growth in commercial and consumer loans, commercial real estate loan acquisitions, and one additional business day in the quarter. * The provision for credit losses decreased $87 mln from a year ago due to a $117 mln reduction in credit losses. The third quarter 2013 provision included an $80 mln reserve release, compared with $110 mln a year ago. * Noninterest income was $9.7 bln, compared with $10.6 bln in second quarter 2013, driven primarily by lower mortgage refinance volume and reduced gain on sale margins. Total loans were $812.3 bln at September 30, 2013, up $10.4 bln from June 30, 2013.
Mortgages/Loans
* Mortgage banking noninterest income was $1.6 bln, down from $2.8 bln in second quarter 2013. During the third quarter, residential mortgage originations were $80 bln, down from $112 bln in second quarter 2013. The Company provided $28 mln for mortgage loan repurchase losses, compared with $65 mln in second quarter 2013 (included in net gains from mortgage loan origination/sales activities). * Total average loans were $804.8 bln, up $4.5 bln from the prior quarter. Total average deposits were $1.0 trln, up 8 percent from a year ago and up 6 percent (annualized) from second quarter 2013. 2013.
Capital:
* Under Basel III capital rules, the Tier 1 common equity ratio was an estimated 9.54 percent. Net loan charge-offs improved to $975 mln in third quarter 2013, or 48 basis points of average loans, compared with $1.2 bln in second quarter 2013, or 58 basis points of average loans. The allowance for credit losses, including the allowance for unfunded commitments, totaled $15.6 bln at September 30, 2013, down from $16.6 bln at June 30, 2013. The allowance coverage to total loans was 1.93 percent, compared with 2.07 percent in second quarter 2013.
Divisions:
* Community Banking reported net income of $3.3 bln, up $96 mln, or 3 percent, from second quarter 2013. Wholesale Banking reported net income of $2.0 bln, down $31 mln, or 2 percent, from second quarter 2013. Revenue of $5.9 bln decreased $264 mln, or 4 percent, from prior quarter on lower sales and trading and investment banking results as well as seasonally lower crop insurance fees. Wealth, Brokerage and Retirement reported net income of $450 mln, up $16 mln, or 4 percent, from second quarter 2013.
Commentary:
"As our economy continues to transition to higher interest rates, our diversified business model and strong risk discipline contributed to record earnings per share along with continued strength in return on assets, return on equity and capital. The improvement in the housing market has been beneficial to our customers and significantly contributed to our broad-based credit improvement in the quarter...This was a solid quarter for Wells Fargo. As expected, mortgage banking revenue was lower in the quarter as the recent increases in interest rates reduced refinance volume, but this impact was partially offset by improved credit and lower expenses. Year-over-year, we had strong loan growth, double-digit increases in noninterest income across many of our businesses and continued to build capital and return more to shareholders through dividends and share buybacks."
Gapping up
In reaction to strong earnings/guidance: SCTY +7.4% (continues to expect to achieve 278 MW deployed for its current fiscal year 2013), ANGO +6.4%, SWY +5.8%, (upgraded to Overweight from Neutral at JPMorgan ), INFY +5.4%, JPM +1.6%, CHMT +0.6% (announces agreement to sell consumer products segment to KIK Custom Products for $315 mln; commences exploration of sale of agrochemicals business; sees Q3 earnings below consensus), WFC +0.5%.
M&A related: TWGP +6.4% (WSJ discusses Tower Group's bankers are exploring sale of the company; upgraded to Buy from Neutral at Guggenheim), .
Select financial related names showing strength: IRE +3.3%, HBC +1.6%, CS +1.5%, C +1.4%, BNS +1.4%, KEY +1.3%, BAC +1.2%, DB +0.7%, GS +0.6% .
A few solar names are trading higher: RSOL +5.1%, CSIQ +3.8%, HSOL +3.2%, YGE +2.4%, JASO +1.5%, JKS +1.3%,
India related names seeing premarket upside: TTM +3.5%, IBN +2.7%, HDB +2.4%,
Other news: OSIR +24.9% (announces agreement for culture-expanded MSCs including Prochymal worth up to $100 mln plus royalties), SSW +22% (disclosed that it will no longer proceed with its previously announced public offerings of common shares and convertible notes as it would not be in the best interests of our shareholder), OCLR +7% (II-VI announces agreement to purchase Oclaro's Fiber Amplifier and Micro-Optics business in a transaction valued at $88.6 mln; announces resignation of Jerry Turin, CFO), IMGN +5.7% (still checking), SRPT +4.9% (still checking), SRPT +4.9% (Sarepta Therapeutics to host webcast and conference call for the Duchenne Muscular Dystrophy Community on October 17 at 12pm ET), VVUS +2.8% (Auxilium Pharma announces license agreement for the marketing rights to STENDRA in the US and Canada), SAP +2.2% (still checking), SAIA +1.4% ( SAIA to replace GPOR int he S&P SmallCap 600), FXCM +1.4% (FXCM to replace KDN in the S&P SmallCap 600), BBRY +1.2% (ongoing M&A speculation), CTSH +1.1% (following INFY results), OUTR +0.8% (following Jana Partners' Barry Rosenstein comments on CNBC), GILD +0.4% (Gilead Sciences lifting on positive Barron's mention), GPN +0.4% ( disclosed accelerated share repurchase program with Goldman).
Analyst comments: PHG +2.8% (upgraded to Buy from Neutral at Goldman), CTXS +2.1% (upgraded to Neutral from Underweight at JPMorgan), JNJ +1.3% (upgraded to Neutral from Sell at Goldman), DEO +0.6% (upgraded at Exane BNP Paribas)
Croda International Plc JPMorgan Cuts CRDA.UK to Neutral from Overweight - Price Target cut to 2,450p from 2,850p
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BFW 10/11 11:25 *FINGERPRINT SHARES TO RESUME TRADING AT 13:30 CET: NASDAQ OMX BN 10/11 11:23 *FINGERPRINT SHARES TO RESUME TRADING AT 13:30 CET: NASDAQ OMX
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NASDAQ OMX Stockholm AB Equity Market information Upphävt handelsstopp i/Resumed trading Fingerprint Cards AB (111/13) 2013-10-11 11:16:43.361 GMT
NASDAQ OMX Stockholm AB Equity Market information Upphävt handelsstopp i/Resumed trading Fingerprint Cards AB (111/13)
Med hänvisning till pressmeddelandet Fingerprint Cards AB publicerade klockan 11:34 idag samt Börsmeddelande 108/13 har NASDAQ OMX Stockholm AB, i samråd med Finansinspektionen beslutat att handeln i Fingerprint Cards AB (FING B, ISIN-kod SE0000422107, orderboks ID 4870) skall återupptas. Handeln återupptas klockan 13:30 med ett auktionsförfarande klockan 13:20.
With reference to the press release Fingerprint Cards AB published at 11:34 CET today and Exchange Notice 108/13, NASDAQ OMX Stockholm AB has in consultation with the Swedish Financial Supervisory Authority (Sw. Finansinspektionen) decided that the trading in Fingerprint Cards AB (FING B, ISIN code SE0000422107, orderbook ID 4870) shall be resumed. The trading will resume at 13:30 CET with a call auction at 13:20 CET.
För eventuella frågor om detta börsmeddelande vänligen kontakta Anna Jansson eller Patrik Hellgren på telefon 08-405 60 00.
For further information concerning this exchange notice please contact Anna Jansson or Patrik Hellgren on telephone + 46 8 405 60 00.
-0- Oct/11/2013 11:16 GMT
Early premarket gappers
Gapping up: OSIR +24.9%, SSW +22%, OCLR +7%, SWY +5.8%, ANGO +5.5%, INFY +5.4%, SRPT +4.9%, TTM +3.5%, IRE +3.3%, IBN +2.7%, JPM +2.5%, HDB +2.4%, SAP +2.2%, SAIA +1.4%, FXCM +1.4%, BBRY +1.2%, GS +0.8%, OUTR +0.8%, CHMT +0.6%
Gapping down: EOPN -27%, ASTM -16.7%, SGI -14.4%, DEG -5.3%, GPS -5.2%, ZAGG -4.1%, NMFC -3%, ONNN -2.9%, LXP -2.3%, MU -2.3%, IPI -1.4%, SNDK -0.8%, LRN -0.4%
JPMorgan Chase beats by $0.13, misses on revs
Reports Q3 (Sep) earnings of $1.42 per share, $0.16 better than the Capital IQ Consensus Estimate of $1.29; revenues fell 8.1% year/year to $23.12 bln vs the $23.63 bln consensus.
* Including the litigation reserve expense JPM reported net loss of $0.4 bln for Q3. Earnings per share were $(0.17), compared with $1.40 in 3Q12. The Firm's return on tangible common equity for Q3 was (2)%, compared with 16% in the prior year. These figures included legal expense in Corporate of $9.2 billion ($7.2 billion after-tax), and a benefit from reserve releases of $1.6 billion or $0.26 per share ($992 million after-tax). Excluding these items, third-quarter net income would have been $5.8 billion, or $1.42 per share.
Capital
Fortress balance sheet remains strong Basel I Tier 1 common of $145 bln, and ratio of 10.5%; Estimated Basel III Tier 1 common ratio of 9.3%; Estimated Firm supplementary leverage ratio ("SLR") of 4.7%. As planned, resubmitted our capital plan to the Federal Reserve and expect to receive feedback by year-end.
Consumer & Community Banking
- Net income was $2.7 bln, an increase of $347 mln, or 15% compared with the prior year, due to lower provision for credit losses and noninterest expense, predominantly offset by lower net revenue. Net revenue was $11.1 bln, a decrease of $1.6 bln, or 13%, compared with the prior year. Net interest income was $7.1 bln, down $174 mln, or 2%, driven by lower deposit margins, spread compression in Credit Card and Auto and lower loan balances due to portfolio runoff, largely offset by higher deposit balances. - Return on equity was 23% on $46.0 bln on of average allocated capital. - Average total deposits were $456.9 bln, up 10% from the prior year and 1% from the prior quarter. Deposit margin was 2.32%, compared with 2.56% in the prior year and 2.31% in the prior quarter. - Auto originations were $6.4 bln, up 2% from the prior year. - Mortgage originations were $40.5 bln, down 14% from the prior year and 17% from the prior quarter, including purchase originations of $20.0 bln, up 57% from the prior year and 15% from the prior quarter. Mortgage Banking net income was $705 million, an increase of $82 mln, or 13%, compared with the prior year, driven by lower provision for credit losses and noninterest expense, predominantly offset by lower net revenue. Net revenue was $2.0 bln, a decrease of $1.7 billion compared with the prior year. Net interest income was $1.1 bln, a decrease of $44 million, or 4%, driven by lower loan balances due to portfolio runoff. Noninterest revenue was $877 million, a decrease of $1.6 billion, driven by lower mortgage fees and related income. Mortgage application volumes were $40.4 billion, down 45% from the prior year and 38% from the prior quarter.
Corporate & Investment Banking
- Net income was $2.2 bln, up 12% compared with the prior year. Net revenue was $8.2 bln, compared with $8.4 bln in the prior year. Net revenue included a $397 million loss from DVA on structured notes and derivative liabilities; the prior year included a loss from DVA of $211 million. - Banking revenue was $2.9 billion, up 2% from the prior year. Investment banking fees were $1.5 billion, up 6% from the prior year, driven by higher equity underwriting fees of $333 million, up 42% from the prior year, and higher debt underwriting fees of $855 million, up 6% from the prior year, partially offset by lower advisory fees of $322 million, down 17% from the prior year. - Treasury Services revenue was $1.1 billion, flat compared with the prior year. Lending revenue was $351 million, primarily reflecting net interest income on retained loans and fees on lending-related commitments. Markets & Investor Services revenue was $5.3 billion, down 4% from the prior year. - Fixed Income Markets revenue was $3.4 billion, down 8% compared with a strong prior year. The prior year included a modest loss from the synthetic credit portfolio. Equity Markets revenue was $1.2 billion, up 20% from the prior year, driven by broad-based strength across products and regions. Securities Services revenue was $1.0 billion, up 3% from the prior year. Credit Adjustments & Other revenue was a loss of $409 million, compared with a loss of $225 million in the prior year; both periods were predominantly driven by the impact of DVA. Return on equity was 16% on $56.5 billion of average allocated capital (17% excluding DVA1).
Dimon on Litigation Reserves
"While we had strong underlying performance across the businesses, unfortunately, the quarter was marred by large legal expense. We continuously evaluate our legal reserves, but in this highly charged and unpredictable environment, with escalating demands and penalties from multiple government agencies, we thought it was prudent to significantly strengthen them. While we expect our litigation costs should abate and normalize over time, they may continue to be volatile over the next several quarters."