>>> What to look at today - 19th of December 2024

Asian stocks slid on Thursday after the Federal Reserve forecast fewer interest-rate cuts next year. The yen dropped as the Bank of Japan refrained from raising borrowing costs. Equity benchmarks in Japan, Australia and South Korea declined, helping drag a gauge of regional equities down by as much as 1.7%. The losses mirrored a slump in US shares in the previous session, with the S&P 500 suffering its biggest loss since 2001 for a Fed decision day. China’s benchmark gauge CSI 300 pared declines.  The yen weakened past the key level of 155 versus the dollar following the BOJ decision, with traders awaiting clues about the rate outlook from Governor Kazuo Ueda’s news conference later Thursday. The move comes after the Fed lowered rates by 25 basis points on Wednesday as expected, with the median policymaker now seeing just a half-percentage point of reductions next year, half of what was expected in September.  The 155 level for the dollar-yen pair is closely watched by strategists, who see a slide to this mark as a potential trigger for verbal intervention from Japanese authorities, and added pressure on the BOJ to hike rates. In the broader foreign-exchange market, the prospect of fewer US rate cuts supported the dollar and sent Asian currencies tumbling. India’s rupee slid to a record low while the South Korean won dropped to its weakest level in more than 15 years. Treasury yields edged higher after rising across the curve in the prior session.  Back in the US, the last time the S&P 500 saw losses of the magnitude on Fed’s decision day was on Sept. 17, 2001, when the index fell nearly 5%. It dropped 12% on March 16, 2020, a day after the Fed’s emergency weekend meeting during the pandemic. Fed Chair Jerome Powell said the central bank would be more cautious as it considers further adjustments to the policy rate, noting the Fed is committed to reaching its 2% inflation target. “We need to see progress on inflation,” he said. “We moved quickly to get to here but moving forward we are moving slower.” Whitney Watson of Goldman Sachs Asset Management expects the Fed to skip a rate cut in January before resuming on its easing path in March. “While the Fed opted to round out the year with a third consecutive cut, its New Year’s resolution appears to be for a more gradual pace of easing,” said Watson, global co-head and co-chief investment officer of fixed income and liquidity solutions at the firm. Over in China, authorities ramped up support for the currency via its daily reference rate after the Fed’s caution over future rate cuts sent the offshore yuan to a fresh one-year low. Contemporary Amperex Technology Co., the world’s top electric-vehicle battery maker, is considering a second listing in Hong Kong that could raise at least $5 billion, according to people familiar with the matter. Shares of Asian memory chipmakers and their suppliers fell after Micron Technology offered disappointing revenue forecast. In the US, President-elect Donald Trump said he opposed a proposed funding bill and threatened to oust fellow Republicans if they accepted legislation that didn’t include his demands, increasing the likelihood of a government shutdown later this week. House Majority Leader Steve Scalise said the stopgap funding measure released Tuesday was dead. The Fed’s Wednesday cut precedes a busy run of central bank announcements from around the world. Rate decisions are expected Thursday in the Philippines, Taiwan, the UK, Norway, Sweden and Mexico. China’s one-year Medium-Term Lending Facility rate may be announced at any time through Dec. 24. In commodities, oil fell as expectations for fewer Fed rate cuts boosted the dollar. Gold staged a partial recovery in Asian trading after tumbling more than 2% in the previous session.  US After Hours WS -14.6%, MU -13.2%, MLKN -9.6%, LEN -6.8% lower on earnings; MESO +45.7% as FDA approves Ryoncil); BILL +5.1% on news it will join the S&P MidCap 400, LII +3% will join S&P 500.

Nikkei -0.69% Hang Seng -0.57% CSI +0.07% Shanghai -0.35% Shenzen +0.31%

Eur$ 1.0387 CNH 7.3117 CNY 7.2985 JPY 155.21 GBP 1.2594 CHF 0.8994 RUB 104.7048 TRY 35.0514 WTI$ 70.19 -0.55% Gold 2,609 +0.93% BTC 101,095 +0.14% ETH 3,675 -0.40%

S&P +0.12% Nasdaq -0.15% EuroStoxx -1.63% FTSE -1.074% Dax -1.33% SMI -1.12%

Macro :
- Bitcoin Briefly Drops Below $100,000 as Fed Outlook Saps Crypto
- ‎Fed hints at slower rate cut pace, raises inflation estimates
- Dutch to Extend Law to Block Foreign Deals to More Industries
- Gundlach Says He Doesn’t See Aggressive Fed Cut Cycle in 2025
- Europe Car Sales Dip as Automakers Battle Consumer Slowdown
- EUROPE CAR SALES FELL 2% TO 1.06 MILLION IN NOVEMBER
- Somber Risk Mood After FOMC Douses Rate-Cut Fervor: Macro Squawk
- Scholz’s Far-Right Rival Puts Germany’s EU Exit on the Ballot
- Global Chip Stocks, Suppliers May Fall on Micron’s Forecast Miss
- Companies That Spent Billions on M&A Are Now Selling for Peanuts
- California declares a state of emergency as a new severe bird flu case was discovered. What it means for the rest of the

Keep an eye on :
- BARC LN : Korea Said to Fine Barclays, Citi for Naked Short Selling (1)
- BIOAB SS : Bioarctic Enters Global License Deal With Bristol Myers Squibb
- BGC US : Howard Lutnick’s Son Takes CEO Role at Cantor Fitzgerald SPAC
- CVX US : Woodside, Chevron Agree to Asset Swap (1)
- CBK GY : Commerzbank volume picked up after the German government told Unicredit to exit its stake, Sept. 2025 13 put vs 18 call traded 23K lots, opening a new position
- CRAYN NO : SoftwareOne Offers to Buy Crayon for $1.14 billion
- DOMS IM : Doms Industries Shares Drop After 4.6% Equity Traded in a Block
- DOU GY : DOUGLAS Group achieves strong results and strategic progress in financial year 2023/24
- EMEIS FP : Emeis Reports €251m in Disposals of Assets Since Oct.
- ENEL IM : Kretinsky’s EPH to Buy Enel’s Stake in Main Slovak Power Utility
- EVK GY : Big block of Evonik Industries crossed late in the day, Dec. 2025 20 calls traded 15K lots at 0.36
- FILA IM : Updated: Doms Industries shares are trading lower after Fabbrica Italiana Lapis ed Affini announced the launch of placement of
- GLEN LN : Glencore Boosts Middle East Oil Buying for Singapore Bukom Plant
- 3692 HK : Hansoh Shares May Rise on Obesity Drug Deal With Merck: Analysts
- LEN US : *LENNAR SHARES FALL 7% POSTMARKET AFTER RESULTS
- LII US : Lennox Shares Gain on Plan to Replace Catalent in S&P 500 (1)
- MARE IM : Mare Engineering Group Offers Up To EU15.5 Million Shares
- MU US : Micron Tech Shares Sink After ‘Awful’ Forecast: Street Wrap
- NSKOG NO : Norske Skog, Statkraft Sign 3-year Power Contract for 1 TWh
- JWN US : The Nordstrom Family and El Puerto de Liverpool Near a Deal to Buy Nordstrom Inc.
- P911 GY : Porsche AG Weighs Taking Majority Stake in Bugatti JV: ManMag
- RNO FP : Hon Hai’s Seki in Talks With Nissan’s Shareholder Renault: CNA
- ROG SW : Roche Phase IIb Study of Prasinezumab Missed Primary Endpoint
- SPM IM : Saipem Wins Offshore Contract in Nigeria Worth $900m
- SCATC NO : Scatec reaches financial close in Botswana and prepares for construction start
- SWON SW : Softwareone Offers to Buy Crayon for NOK144/Shr in Cash, Stock
- SON US : TOPPAN Holdings Buys Sonoco's TFP Business
- TIT IM : Italy, Asterion Make Binding Offer for Telecom Italia’s Sparkle
- TIT IM : calls trading in Telecom Italia, Feb. 2025 €0.3 calls traded a total of 20K lots @ €0.0095 and €0.01
- TRN IM : Terna Signs Two ESG-Linked Credit Facility Deals for €250M
- VH2 GY : FRIEDRICH VORWERK wins major contract for the realisation of key parts of the WAD natural gas transmission pipeline in
- VOW GY : Volkswagen, Union Talks May Continue Into Thursday: Reuters
- VOW GY :Volkswagen Buys Stake in Lithium Firm for $48 Million (Correct)

>>> Europe : Brokers Upgrades & Downgrades - 19th of December 2024

>>> Up
* Birkenstock PT Raised to $70 from $63 at Stifel
* Getinge Raised to Hold at Nordea
* Nemetschek Raised to Buy at Baader Helvea; PT 118 euros
* Ormat Rated New Neutral at Piper Sandler; PT $78
* Pharming PT Raised to 2.15 euros from 1.60 euros at RBC
* Tapestry Raised to Buy at Jefferies; PT $80

>>> Down
* C3.ai Cut to Underweight at KeyBanc; PT $29
* SAP ADRs Downgraded to Hold at CFRA on Valuation Concerns
* Spar Nord Cut to Hold at SEB Equities; PT 210 kroner
* Galderma cut to Hold from Buy at Vontobel, PT from CHF 90 to CHF96

>>> Initiation
* Baker Hughes Rated New Overweight at Piper Sandler; PT $53
* Canal+ Rated New Outperform at Oddo BHF; PT 380 pence
* Halliburton Rated New Overweight at Piper Sandler; PT $36
* Havas Rated New Outperform at Oddo BHF; PT 2.30 euros
* HUTCHMED China ADRs Rated New Buy at Daiwa; PT $23
* SLB Rated New Neutral at Piper Sandler; PT $47
* TechnipFMC Rated New Overweight at Piper Sandler; PT $39
* Weatherford Reinstated Neutral at Piper Sandler; PT $87

>>> Call
* Nemetschek on Track for Full-Year Goals, Baader Helvea Upgrades
* SBB Court Case ‘Significantly Derisked’ After Swap, Arctic Says

>>> US After Hours Summary: WS -14.6%, MU -13.2%, MLKN -9.6%, LEN -6.8% lower on

After Hours Summary: WS -14.6%, MU -13.2%, MLKN -9.6%, LEN -6.8% lower on earnings; MESO +45.7% as FDA approves Ryoncil); BILL +5.1% on news it will join the S&P MidCap 400, LII +3% will join S&P 500

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SCS +2.7%

Companies trading higher in after hours in reaction to news: MESO +45.7% (FDA approves Ryoncil), BILL +5.1% (to join S&P MidCap 400), LII +3% (to join S&P 500), GO +2.8% (names new CFO), EFC +2.4% (closes $243 mln securitization backed by reverse mortgage loans), SVRA +2% (initiates rolling submission of a BLA to the FDA for MOLBREEVI), SON +1.9% (to sell its TFP unit for $1.8 bln), FCF +1.8% (to merge with CenterBank), PLTR +1.7% (expands US Army Vantage partnership with $618.9 mln contract), INTC +1.5% (Intel, NVIDIA and EQTY Lab announce release of Verifiable Compute AI framework), NVDA +1.1% (Intel, NVIDIA and EQTY Lab announce release of Verifiable Compute AI framework), ABCB +0.6% (increases dividend), NOC +0.3% (awarded $3.46 bln U.S. Navy contract), APD +0.2% (files investor presentation highlighting strategy), NBHC +0.1% (announces balance sheet repositioning), RJF +0.1% (reports Nov operating data)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: WS -14.6%, MU -13.2%, MLKN -9.6%, LEN -6.8%, EPAC -4.3%

Companies trading lower in after hours in reaction to news: TPVG -4.1% (names new CFO), WDC -4% (in sympathy with weak MU earnings), AAOI -1.9% (files mixed shelf securities offering), SSNC -1.4% (approves renewal of repurchase program; may purchase up to ~ 2.1% of shares), NVX -1.2% (announces participation in trade case), TPH -0.7% (authorizes new $250 mln share repurchase program), WBD -0.5% (announces new leadership structure for its US networks division, according to Variety), TT -0.3% (to acquire BrainBox AI)

FT : Porsche-Piëch family pushes for Volkswagen plant closures

Porsche-Piëch family pushes for Volkswagen plant closures
German carmaker’s majority owner has emerged as a hardline backer of cost cuts

The billionaire Porsche-Piëch family, Volkswagen’s majority owner, has taken a hardline stance in backing the company’s plans to close several German factories, as the threat of diminished dividends looms.

Lack of progress on the restructuring, initially announced in September, has become a growing concern for the Porsche-Piëch family, which has reversed its traditional stance of avoiding confrontation with VW’s powerful works council.

According to one person briefed on discussions at recent supervisory board meetings, the family has “made clear that it is necessary to rightsize the business in order to achieve long-term competitiveness”.

VW has argued for the closure of plants in Germany as its European sales have fallen sharply. However, the company’s works council, which controls half the seats on the company’s supervisory board, has promised workers that not a single German plant will be closed.

Another person with knowledge of the discussions said it was “hardly surprising” that the Porsche-Piëch family had different priorities than some other supervisory board members, especially the works council and its ally, the state of Lower Saxony, which holds 20 per cent of VW’s voting rights.

Worker representatives have argued that while cost cuts might support profit margins in the short term, they will do little to address sliding sales in both Europe and China, the company’s most profitable market.

Executives at Europe’s largest carmaker have spent weeks locked in tense negotiations with representatives of German workers, who have already downed tools twice in the past month amid fierce disagreement over planned cost cuts.

VW’s management and unions are eager to wrap up formal wage negotiations before Christmas. After 36 hours of continuous debate, the fifth round of talks broke off briefly on Wednesday morning with both sides agreeing to resume negotiations later in the day.

At VW’s supervisory board meetings in the run-up to the negotiations, discussions have been tense. The family’s de facto head, Wolfgang Porsche, last month rejected a compromise put on the table by the works council and union, making clear that anything other than “substantial action on cost efficiency [will be a] solution”, added one person briefed on the talks.

Porsche SE has already taken a hit from the crisis at VW. Last week, it warned that the uncertainty at the carmaker and the absence of financial planning data could force it to write down its stake in VW by up to €20bn, or nearly 40 per cent.

The family also faces the risk of falling VW dividends, which last year stood at €1.4bn, at a time when Porsche SE is saddled with €5.1bn in debt. The holding company borrowed heavily in 2022 to buy a 25 per cent voting stake in sports car maker Porsche AG — allowing the family to regain direct control over the company founded by its forebears.

“The plan was to finance the interest payments and to deleverage with the dividends from Porsche and VW,” said Stifel analyst Daniel Schwarz. “That’s clearly at risk now,” he added, explaining that the family’s wealthiest members “have most of their wealth invested in this one company”.

But the family’s battle with the carmaker’s workers carries other risks.

With Berlin gearing up for snap elections early next year, the hardline plan to cut tens of thousands of jobs at VW has met significant political blowback. A growing group of politicians — including Chancellor Olaf Scholz — have spoken out against factory closures.

“Some politicians have argued that VW should not pay a dividend at all and the union said that VW should consider a lower payout ratio,” Schwarz said.

The upcoming elections will also make it less likely that the state of Lower Saxony, which owns 20 per cent of VW voting rights and tends to back employment, would turn against the works council on the plant closures.

WWD : EssilorLuxottica Inks New Acquisition Agreement

EssilorLuxottica Inks New Acquisition Agreement
The eyewear giant is set to buy Espansione Group, which will help accelerate its growth in the med-tech segment.

MILAN — EssilorLuxottica continues to invest in the med-tech segment.

On Tuesday, the eyewear giant revealed it has signed an agreement to acquire the Italy-based Espansione Group, which specializes in the design and manufacturing of noninvasive medical devices, protected by international patents for the diagnosis and treatment of dry-eye, ocular surface and retinal diseases.

Francesco Milleri, chairman and chief executive officer of EssilorLuxottica, said “this investment, proudly made in one of our home countries, will expand our portfolio of medical devices and solidify our role in the optical industry.”

The group’s “med-tech journey, aimed at elevating vision health standards, will continue to be an open and collaborative one, where our products and services are accessible to all industry players,” Milleri added.

The acquisition advances EssilorLuxottica’s med-tech strategy and follows the deal, revealed in July, to acquire an 80 percent stake in Heidelberg Engineering, a German company that is a specialist in diagnostic solutions, digital surgical technologies and health care IT for clinical ophthalmology.

Espansione Group delivers the highest medical standards in more than 40 countries, stated EssilorLuxottica, which is on an acquisition spree. In July it also agreed to take over Supreme from VF Corp. for $1.5 billion in cash.

In September, EssilorLuxottica extended its partnership with Meta Platforms with the aim of building on the success of its Ray-Ban Meta smartglasses to develop the next generation of smart eyewear products.

The two companies initially joined forces in 2019 and said they have entered a new long-term agreement.

Also, Luxottica unveiled its new Nuance Audio brand, a convergence of eyewear and hearing aid devices, first introduced in early January at CES in Las Vegas and at Mido a month later.

A little less than two years in the making since the firm established the dedicated Super Audio division in the summer of 2022 and finalized the acquisition six months later of Israeli company Nuance Hearing, Nuance Audio offers eyewear with integrated high-tech hearing technology poised to offer a valid and better-looking alternative to hearing aid devices. Designed to be invisible with technology integrated throughout the acetate frames, as comfortable as any pair of glasses, and easy to set up (configuration takes less than two minutes), Nuance Audio frames are geared at people in their 50s and 60s suffering from mild to moderate hearing loss.

This has been a busy year for EssilorLuxottica, which saw the debut of collections for Brunello Cucinelli, Jimmy Choo and Ferrari, Moncler’s new Lunettes collection in September, an Alain Mikli relaunch and an Oliver Peoples four-collection collaboration with Roger Federer.

Established in 2018 by the merger of France’s Essilor and Italy’s Luxottica Group, in addition to its proprietary brands, from Ray-Ban to Oakley and Persol, the group produces eyewear under license for brands ranging from Giorgio Armani and Prada to Tiffany & Co. and Versace.

EssilorLuxottica, which is publicly traded on Euronext Paris, in the first nine months of the year reported revenues of 19.7 billion euros, up 3 percent compared with the same period in 2023.

>>> US Research Calls I

Research Calls I
  • Upgrades:
    • Azenta (AZTA) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $60
    • Bill.com (BILL) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $115
    • Citizens Financial Group (CFG) upgraded to Strong Buy from Mkt Perform at Raymond James; tgt $55
    • Dow (DOW) upgraded to Outperform from In-line at Evercore ISI; tgt $56
    • Expedia Group (EXPE) upgraded to Buy from Neutral at BofA Securities; tgt raised to $221
    • Fiserv (FI) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $255
    • Formula One Group C (FWONK) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt raised to $115
    • MSCI (MSCI) upgraded to Buy from Neutral at Goldman; tgt raised to $723
    • Oceaneering Intl (OII) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $26
    • Ollie's Bargain Outlet (OLLI) upgraded to Buy from Sell at Citigroup; tgt raised to $133
    • Packaging Corp (PKG) upgraded to Buy from Hold at Jefferies; tgt raised to $280
    • Principal Fincl (PFG) upgraded to Overweight from Neutral at Piper Sandler; tgt $90
    • Q2 Holdings (QTWO) upgraded to Overweight from Sector Weight at KeyBanc Capital Markets; tgt $126
    • Transocean (RIG) upgraded to Overweight from Equal Weight at Barclays; tgt $4.50
    • Westlake Corporation (WLK) upgraded to Buy from Neutral at Citigroup; tgt lowered to $140
    • Workiva (WK) upgraded to Buy from Hold at Stifel; tgt raised to $130
    • Xometry (XMTR) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $45
  • Downgrades:
    • Angi Inc. (ANGI) downgraded to Neutral from Overweight at JP Morgan
    • Antero Midstream (AM) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $16
    • Axalta Coating Systems (AXTA) downgraded to Neutral from Buy at Citigroup; tgt lowered to $41
    • Beyond, Inc. (BYON) downgraded to Sell from Hold at Argus
    • Eastman Chemical (EMN) downgraded to Neutral from Buy at Citigroup; tgt lowered to $104
    • Electronic Arts (EA) downgraded to Hold from Buy at Stifel; tgt $167
    • Enterprise Products (EPD) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $35
    • Fluence (FLNC) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $20
    • Fluor (FLR) downgraded to Neutral from Outperform at Robert W. Baird; tgt raised to $58
    • Getty Images (GETY) downgraded to Underweight from Neutral at JP Morgan
    • Halliburton (HAL) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $33
    • Match Group (MTCH) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $33
    • Moderna (MRNA) downgraded to Hold from Buy at Argus
    • ONEOK (OKE) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $107
    • Pactiv Evergreen (PTVE) downgraded to Hold from Buy at Jefferies; tgt raised to $18
    • Plains All American (PAA) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $20
    • Plains GP (PAGP) downgraded to Equal Weight from Overweight at Wells Fargo; tgt lowered to $20
    • PLAYSTUDIOS (MYPS) downgraded to Underweight from Neutral at JP Morgan
    • RenaissanceRe (RNR) downgraded to Hold from Buy at Jefferies; tgt lowered to $282
    • Rivian Automotive (RIVN) downgraded to Neutral from Outperform at Robert W. Baird; tgt lowered to $16
    • SBA Comm (SBAC) downgraded to Market Perform from Outperform at BMO Capital Markets; tgt lowered to $230
    • Valaris (VAL) downgraded to Equal Weight from Overweight at Barclays; tgt lowered to $49
  • Others:
    • Academy Sports + Outdoors (ASO) initiated with a Buy at Citigroup; tgt $65
    • Blend Labs (BLND) initiated with a Mkt Outperform at JMP Securities; tgt $7
    • Box (BOX) initiated with a Buy at DA Davidson; tgt $45
    • Casey's General (CASY) resumed with a Market Perform at BMO Capital Markets; tgt raised to $450
    • CompoSecure (CMPO) initiated with a Buy at TD Cowen; tgt $20
    • DoubleVerify (DV) initiated with an Outperform at Raymond James; tgt $25
    • Esperion Therapeutics (ESPR) initiated with a Neutral at Goldman; tgt $4
    • FinWise Bancorp (FINW) initiated with an Outperform at Raymond James; tgt $21
    • KalVista Pharmaceuticals (KALV) initiated with a Buy at BofA Securities; tgt $22
    • Kosmos Energy (KOS) resumed with a Buy at Jefferies; tgt $5.60
    • Lantheus Holdings (LNTH) initiated with a Buy at Goldman; tgt $143
    • On (ONON) initiated with a Neutral at Citigroup; tgt $65
    • Performance Food Group (PFGC) initiated with a Hold at Melius; tgt $95
    • The Real Brokerage (REAX) initiated with a Buy at BTIG Research; tgt $6
    • Rocket Pharmaceuticals (RCKT) initiated with a Buy at Jefferies; tgt $29
    • SOPHiA GENETICS SA (SOPH) initiated with a Buy at Craig Hallum; tgt $11
    • Strawberry Fields REIT (STRW) initiated with a Buy at Janney; tgt $12.50
    • Sysco (SYY) initiated with a Hold at Melius; tgt $85
    • Target (TGT) added to Tactical Outperform List at Evervore ISI
    • US Foods (USFD) initiated with a Buy at Melius; tgt $12