FT : French defence companies to put down roots in Ukraine

French defence companies to put down roots in Ukraine
Groups to form local partnerships focusing on drones, military repair and production

French defence companies will repair and manufacture military equipment locally in Ukraine as Paris seeks to rally western allies to do more to help local forces to push back the Russian full-scale invasion. 

“We are not at the maximum level of what we can do in Ukraine,” said defence minister Sébastien Lecornu in an interview on French radio RMC. 

“Three French companies will be setting up partnerships with Ukrainian companies, in particular in the drone and land equipment sectors, to produce spare parts on Ukrainian soil, and perhaps ammunition in the future”, he said, adding that the first production could begin by this summer. 

The companies involved are KNDS, a joint-venture of France’s state-owned Nexter and Germany’s Krauss-Maffei Wegmann that makes munitions, the Caesar howitzer, and combat vehicles; Arquus, a military vehicle maker and supplier of chassis; and drone maker Delair. 

Lecornu also announced that France had ordered 200 surface-to-air Aster missiles from European manufacturer MBDA, and that some could be sent to Ukraine.

The French move is part of a broader push among European defence companies to start shifting some production, repair or maintenance functions into Ukraine as the war drags on into a third year and shortages of ammunition hamper Ukrainian soldiers’ ability to fight. In September, Ukrainian President Volodymyr Zelenskyy hosted a conference in Kyiv in a bid to attract companies, and several of them have been holding discussions with local partners since then. 

Düsseldorf-based Rheinmetall, which has seen demand soar for its 155mm artillery shells that are standard in western howitzers, plans to manufacture both munitions and later tanks in Ukraine together with Kyiv-owned defence contractors.

At the Munich Security Conference in February, chief executive Armin Papperger said the company aimed eventually to produce a six-digit number of 155mm calibre bullets per year in Ukraine with a local joint venture partner, without specifying the timing. 

The company’s joint venture with Kyiv-owned Ukroboronprom has already begun to repair military vehicles locally — both Leopards and Panthers donated by the west as well as old Soviet models — returned from the front line.

Czechoslovak Group, which makes ammunition and other military equipment, is also looking to sign some production joint venture agreements in Ukraine.

BAE Systems said in September that it was exploring options to work with local partners in Ukraine to produce spare parts for its light artillery.

Ukraine has said it needs more ammunition and long-range missiles to push back Russian attacks and liberate its territory, and its foreign minister warned in an article in Le Monde that shortages were hampering its ability to fight.

President Emmanuel Macron has in recent weeks been trying to spur European backers of Ukraine to step up their aid to Kyiv and consider new forms of support, arguing that Russia was getting more aggressive and that US support was not a given. “We are without doubt facing a time in Europe when we cannot be cowardly,” he said in a recent speech in Prague.

But Macron sparked a backlash last month when he said sending western troops to Ukraine could “not be ruled out”, an idea promptly rejected by many Nato allies and which provoked a strong reaction in Germany. 

Sending civilian workers from western defence companies to Ukraine could also carry some risk. 

Arquus already has sent staff to Ukraine to repair and maintain the roughly 250 armoured personnel carriers that France has donated to Ukraine, and train Ukrainians to carry out those functions. It is also working on a plan to produce replacement parts locally. 

“The framework contract was signed with a Ukrainian partner about 10 days ago, so we are entering into the operational phase,” said Arquus. 

Nexter, the French part of KNDS, said it had been in discussions to find a local partner since September to “bring maintenance and eventually production” closer to the front lines. 

A person close to the company said it would “take a few weeks to figure out what is doable” and added that the French government has asked them to support Ukraine locally. “There’s a symbolic aspect to it, but it also has to be competitive,” the person said, adding that KNDS already had operations nearby in Lithuania and Romania.

WSJ : Bitcoin Bulls Cite a Simple Reason for Its Rally: Not Enough Coins

Bitcoin Bulls Cite a Simple Reason for Its Rally: Not Enough Coins
What makes the cryptocurrency different from just about any other commodity is its tightly constrained supply

Why did bitcoin soar to a record this week? Fans of the world’s largest cryptocurrency say it is due to old-fashioned laws of supply and demand.

Like the price of any commodity—whether it be gold, oil or soybeans—bitcoin’s price is sensitive to fluctuations in demand. And demand for bitcoin surged after the January launch of U.S. exchange-traded funds, known as “spot” bitcoin ETFs, that directly hold units of the digital currency. Since then, investors have poured billions of dollars into these ETFs. Those inflows prompted the funds to buy bitcoin to meet the demand, bidding up the price.

But what makes bitcoin different from just about any other commodity is its tightly constrained supply, a dynamic that can lead to sharp price spikes.

The computer code underpinning bitcoin imposes a hard limit of 21 million coins. More than 90% of them have already been created. To expand supply, number-crunching computers run algorithms to “mine” new coins. But they can only crank out about 900 new bitcoins a day, a rate expected to drop next month after a periodic event called the halving. The bitcoin supply is eventually set to stop growing when the final coin is mined, around the year 2140.

“Bitcoin is one of the scarcest assets in the world and it is becoming scarcer every day,” said Alex Thorn, head of research at Galaxy Digital.

There is no guarantee that bitcoin will keep rallying. Its current high prices could encourage holders to sell their coins and lock in profits. Bitcoin’s previous bull markets have been followed by devastating crashes: After its last peak in November 2021, bitcoin dropped more than 70% over the next year.

And skeptics—including government officials and Wall Street executives who have stayed on the sidelines of the rally—still dismiss bitcoin as a speculative asset with no intrinsic value.

Bitcoin was trading at $67,754.57 at 4 p.m. ET Thursday, down from the record high of $69,208.79 that it touched the previous day, but still up 59% since the start of the year.

In economics jargon, the supply of bitcoin is highly inelastic, meaning it doesn’t respond to price moves. Commodities that have this property are prone to bursts of price volatility. Producers of natural gas, for instance, can’t pump substantially more gas in the short term to take advantage of high prices.

In the long term, though, sustained high prices for natural gas motivate drillers to discover new sources of the fuel. Similarly, when gold prices are elevated for lengthy periods, gold miners can pursue costly new mining projects, hunting for the precious metal in ever more exotic places.

Bitcoin doesn’t work that way. Rules baked into bitcoin’s code specify the rate at which miners can bring new coins into the market, a rate that is periodically cut in half. In the past, bitcoin’s price has climbed ahead of such halvings, as crypto investors anticipate tighter supplies. And the idea that bitcoin should have a fixed maximum supply comes from Satoshi Nakamoto, bitcoin’s anonymous creator, who wrote that such a design would keep bitcoin inflation-free.

“There is fundamentally no ability to bring additional supply to the market,” said Steven Lubka, head of private client services at investment firm Swan Bitcoin.

This makes bitcoin sensitive to increases in demand—and the new ETFs have been gobbling up bitcoins since their launch on Jan. 11. On that day, nine new spot bitcoin ETFs made their debut for trading, while an existing fund, the Grayscale Bitcoin Trust, converted into an ETF. Close to $8 billion have flowed into the ETFs since then, on a net basis, with inflows into the nine new funds outpacing outflows from Grayscale.

As of Tuesday, 5% of the world’s total supply of bitcoin was held by ETFs or other investment funds globally, up from 4.4% on Jan. 11, when the new U.S. ETFs started trading, according to estimates from investment research firm ByteTree.

When the ETFs buy new bitcoins to meet investor demand, they generally rely on proprietary trading firms such as Cumberland, a unit of Chicago-based trading giant DRW Holdings, or New York-based Jane Street Capital. These firms run crypto trading desks that scour the digital-currency markets for big slugs of bitcoin to fill the funds’ orders.

Some analysts say it has become increasingly difficult to obtain bitcoin from big holders. Public blockchain data show that much of the world’s supply of about 19.6 million bitcoins is located in digital wallets that rarely move the coins—potentially because they belong to long-term bitcoin holders who refuse to sell, or perhaps because the owners lost their passwords, rendering their coins inaccessible.

About 80% of bitcoin’s supply hasn’t changed hands during the past six months, Swiss private bank Julius Baer analyst Manuel Villegas said in a research note last week. Coupled with the ETF inflows, and data suggesting limited inventories of bitcoin available for sale on exchanges, that “could set the stage for an intensified supply squeeze,” Villegas wrote.

Others say there have been plenty of sellers willing to sell into the rally—potentially a reason why bitcoin’s momentum stalled this week after it briefly surpassed its 2021 record.

Cumberland didn’t have a problem finding bitcoin to meet the ETFs’ demand for the coins during the recent weeks of heavy ETF inflows, said Rob Strebel, head of relationship management at DRW. The firm got much of that bitcoin from big crypto investors who bought bitcoin when it was cheaper and took the opportunity to take profits, he said.

“When you see a market go parabolic, as we have with bitcoin, it’s a natural selling opportunity,” Strebel said. “And especially as people remember the last bull market of 2021, they’re taking some chips off the table.”

WSJ : Novo Nordisk Shares Surge After Early Trial Shows New Obesity Drug Could O

Novo Nordisk Shares Surge After Early Trial Shows New Obesity Drug Could Outperform Wegovy
Phase 1 trial of Amycretin, taken in pill form, shows faster weight loss

Shares in Novo Nordisk NOVO.B -1.45%decrease; red down pointing triangle hit a record after the company presented early data for a new obesity drug suggesting it could be more effective than the Danish pharmaceutical giant’s blockbuster Wegovy treatment.

Novo Nordisk said a Phase 1 trial of its Amycretin treatment showed weight loss of around 13% after 12 weeks, better than the 6% weight loss patients experienced after 12 weeks in a Wegovy trial.

Shares rose as much at 7.5%.

On the back of the promising early data, the drug—which is taken once daily as a pill—should move into a Phase 2 trial in the second half of this year, executives said at an investor day on Thursday.

“We believe this data release is the primary driver for the shares,” Barclays analysts said in a note. “Importantly, the company noted that it has not ruled out going [straight] into Phase 3 development.”

The popularity of Wegovy and diabetes drug Ozempic has exploded, and Novo Nordisk is hurrying to boost manufacturing capacity to meet demand. As supply increases and the company is able to launch Wegovy in new markets, it expects sales to grow rapidly.

“This is going to get big. This is going to get very, very big,” said Maziar Mike Doustdar, head of international operations.

Both Wegovy and Ozempic are based on the same active ingredient, semaglutide, and the company is busy developing the next generation of treatments that combine it with other ingredients to enhance benefits and improve other areas of health.

Amycretin is one of the most eagerly anticipated, and CagriSema is another.

CagriSema, a combination of semaglutide and a drug called cagrilintide, is currently in a Phase 3 trial, having already shown greater blood-sugar control and weight-loss benefits in diabetic patients than those treated with only semaglutide or cagrilintide.

Using the two-drug combination gives “more bang for the buck,” said Martin Holst Lange, head of development. “If we can show that…that will be a real game-changer.”

The new pipeline of drugs should also benefit from production efficiencies as the company expects them to be manufactured using existing facilities.

In its presentation at the investor event, Novo Nordisk highlighted 10 new obesity treatments currently under development.

The runaway success of semaglutide-based drugs for treating weight loss and diabetes has also yielded extra health benefits, with studies showing that they also cut the risks of stroke and heart attacks as well as slowing the progression of kidney failure, while a recent small study also showed a meaningful improvement in pain and physical function in patients with osteoarthritis.

“There is a secret sauce to Wegovy that goes way above weight loss,” Doustdar said.

Based on these outcomes, the company is expanding into areas like cardiovascular diseases and increasing focus on treating conditions outside of its core diabetes and weight-loss market.

It aims to establish a presence in the cardiovascular and emerging-therapy areas while strengthening its progress in the rare-disease pipeline, in addition to building on its portfolio of obesity and diabetes treatments.

The move comes as Novo Nordisk will lose exclusivity to semaglutide around 2031 or 2032.

“Growth beyond semaglutide loss of exclusivity remains a key priority,” the company said.

>>> US Research Calls V1

Research Calls
  • Upgrades:
    • Carvana (CVNA) upgraded to Sector Perform from Underperform at RBC Capital Mkts; tgt raised to $90
    • Coinbase Global (COIN) upgraded to Neutral from Sell at Goldman; tgt $282
    • Dycom (DY) upgraded to Buy from Neutral at B. Riley Securities; tgt raised to $172
    • Gap (GPS) upgraded to Outperform from Neutral at KGI Securities
    • Gates Industrial (GTES) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $20
    • General Electric (GE) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $180
    • HCI Group (HCI) upgraded to Outperform from Mkt Perform at William Blair
  • Downgrades:
    • AeroVironment (AVAV) downgraded to Neutral from Outperform at Robert W. Baird; tgt $161
    • a.k.a. Brands (AKA) downgraded to Hold from Buy at Truist; tgt lowered to $10
    • ALX Oncology (ALXO) downgraded to Hold from Buy at Stifel; tgt raised to $14
    • AVANGRID (AGR) downgraded to Sell from Neutral at Janney; tgt $35
    • FIGS, Inc. (FIGS) downgraded to Perform from Outperform at Oppenheimer
    • Global Net Lease (GNL) downgraded to Neutral from Buy at BTIG Research
    • Hess Midstream Partners (HESM) downgraded to Neutral from Overweight at JP Morgan; tgt $37
  • Others:
    • The Aaron's Company (AAN) initiated with a Market Perform at TD Cowen; tgt $7
    • ACI Worldwide (ACIW) initiated with a Buy at Jefferies; tgt $38
    • Assoc Banc-Corp (ASB) initiated with an Equal Weight at Barclays; tgt $22
    • AST SpaceMobile (ASTS) initiated with a Buy at UBS; tgt $7
    • Banc of California (BANC) initiated with an Equal Weight at Barclays; tgt $16
    • BankUnited (BKU) initiated with an Equal Weight at Barclays; tgt $29
    • Bank of Hawaii (BOH) initiated with an Underweight at Barclays; tgt $51
    • Cadence Bank (CADE) initiated with an Equal Weight at Barclays; tgt $28
    • Columbia Banking (COLB) initiated with an Equal Weight at Barclays; tgt $20
    • East West Banc (EWBC) initiated with an Overweight at Barclays; tgt $106
    • enGene Holdings (ENGN) initiated with an Overweight at Morgan Stanley; tgt $40
    • First Hawaiian (FHB) initiated with an Equal Weight at Barclays; tgt $25
    • First Horizon (FHN) initiated with an Overweight at Barclays; tgt $18
    • First Interstate Bancsystem (FIBK) initiated with an Equal Weight at Barclays; tgt $28
    • Healthpeak Properties (DOC) resumed with an Outperform at RBC Capital Mkts; tgt $21
    • IDEAYA Biosciences (IDYA) initiated with a Buy at BTIG Research; tgt $55
    • Popular (BPOP) initiated with an Overweight at Barclays; tgt $99

>>> US Early premarket gappers

Early premarket gappers
  • Gapping up:
    • PRCH +19%, IOT +16.1%, FNKO +10.4%, GRND +10.2%, DOCU +9.6%, SWBI +7.9%, GPS +7.3%, TGB +5.5%, SNPO +5.1%, TSM +4.1%, KYTX +3.9%, VINP +3.1%, CNQ +1.9%, LCTX +1.7%, SPRY +1.7%, FLR +1.6%, LDOS +1.5%, TCPC +1.3%, ML +1%
  • Gapping down:
    • ASLE -19.5%, BBAI -16.8%, COOK -12.3%, PBR -11.9%, SVV -8.8%, DOMO -8.5%, MGNX -7.8%, DKL -7.7%, MDB -7.7%, RDNT -7.3%, RWAY -6.5%, NDLS -6.1%, MRVL -5.7%, CTOS -5%, COST -4.6%, EOLS -4.1%, ARCT -3.2%, MAX -2.5%, AVGO -2.3%, FWRG -2.1%, AKRO -1.6%, AGCO -1.6%, AVO -1.6%, NAPA -1.5%, MBI -1.4%, ZYME -1%

>>> What to look at today - 8th of March 2024

Asian shares rose on dovish signals from the US and European central banks, with focus on American jobs data due later Friday. The yen extended a rally.  Stocks gained from Australia to Hong Kong, pushing a regional gauge up for a third day. Mainland Chinese shares fluctuated. The broader rally came after the S&P 500 Index set a record and the Nasdaq 100 jumped 1.6% Thursday. US futures were flat to a tad lower in Asian trading.  The yen strengthened against the dollar for a fourth day, as expectations grew for the Bank of Japan to raise interest rates for the first time since 2007. A dollar index was marginally weaker, while Treasuries steadied after yields dropped Thursday.
The stronger risk appetite came after Federal Reserve Chair Jerome Powell told a Senate committee Thursday that the central bank is “not far” from confidence needed to ease policy. He said rate reductions “can and will begin” this year, adding that policymakers are well aware of the risks of cutting too late. Meantime, European Central Bank President Christine Lagarde indicated that officials may be in a position to loosen policy in June. All eyes are on Friday’s key US employment data. The consensus forecast places the number of new jobs added to the US economy at 200,000. However, a dispersion in expectations could trigger volatile trading when the final print is released. For instance, RBC Capital Markets LLC expects 260,000 jobs, while Citigroup Inc predicts 145,000.  Elsewhere, Hong Kong proposed life sentences for crimes related to treason and insurrection in a draft security measure officials are seeking to fast-track into legislation. Oil rose Friday after falling in the previous session as traders weighed the outlook for interest rates and tumult in the Middle East. Gold retreated after a record-breaking rally. US After Hours IOT +14.7%, FNKO +13.4%, DOCU +9.5%, GPS +4.4% higher on earnings; BBAI -18.3%, MDB -7.4%, MRVL -5.4%, GWRE -4.3%, COST -3.5%, AVGO -1.6% lower on earnings.

Nikkei +0.23% Hang Seng +1.35% CSI +0.37% Shanghai +0.52% Shenzen +0.97%

Eur$ 1.0947 CNH 7.2010 CNY 7.1927 JPY 147.83 GBP 1.2810 CHF 0.8773 RUB 90.6382 TRY 31.9527 WTI$ 79.50 Gold 2,158 BTC 66,920 ETH 3,885

S&P +0.02% Nasdaq -0.17% EuroStoxx +0.02% FTSE +0.04% Dax -0.02% SMI +0.04%

Macro :
- Saudi Arabia Looks to Follow UAE, IMF With Egypt Investment (1)
- Big Japan Trade Springs Back to Life as BOJ Rate-Hike Bets Grow
- El Niño Scorches Southern Africa With Driest February on Record
- ECB’s Nagel Sees Rising Chance of Rate Cut Before Summer Break
-

Keep an eye on :
- AC FP : Accor Makes Comeback to France’s CAC 40 Index, Replacing Alstom
- AIR FP : Airbus Delivered 49 Jets in February
- ALO FP : Accor Makes Comeback to France’s CAC 40 Index, Replacing Alstom
- DBV FP : DBV Tech FY Net Loss $72.7M Vs. Loss $96.3M Y/y
- ENI IM : Eni Says 1-1.5b Boe Potentially Found in Côte d’Ivoire
- EXO NA : Juventus Sets €1.582/Share Price for New Shares in Offering
- FBD ID : FBD FY Gross Written Premiums EU413.6M Vs. EU382.7M Y/y
- FCT IM : Fincantieri FY Revenue Meets Estimates
- FRAS LN : Frasers: Matches to Be Put Into Administration Amid Losses
- GPS US : Gap 4Q EPS Beats Estimates,
- Golden Goose IPO : Golden Goose Could IPO in May-June, Corriere Reports
- HFG GY : HelloFresh 2024 Adjusted Ebitda Forecast Misses Estimates
- IDIA SW : Idorsia Rallies as Investors Await FDA Decision, Kepler Upgrades
- INW IM : INWIT 4Q Ebit Beats Estimates
- IPR PL : Impresa FY Net Loss EU2M Vs. Profit EU1.1M Y/y
- JUP LN : Jupiter Weighs Dumping £1b of Its Funds as Top Manager Exits: FT
- JUVE IM : Juventus Sets €1.582/Share Price for New Shares in Offering
- LDO IM : Leonardo Could Target Iveco’s Defence Vehicles Unit, Sole Says
- MC FP : LVMH-Backed L Catterton Raises Stake in Tod’s to Over 7%
- MAIRE IM : Maire Unit Gets $1.1b Contract From Sonatrach in Algeria
- MDT US : Medtronic to Buy Back up to Added $5B in Shares
- MITRA BB : Mithra Pharma FY Net Loss Drops to EU173.5M On Impairments
- NEON FP : Neoen Awarded 119 Megawatts of Solar Projects in France
- NOVOB DC : Turnover on Novo Nordisk’s US ADRs Surges to Double Europe Level
- OMXS LN : Swedish Stocks Firing on Only Two Cylinders, Watch for Stall
- 1913 HK : Prada Jumps After 2023 Sales Beat on Miu Miu, Asia --> +17,8% in HK
- PSM : ProSiebenSat.1 Chief Sees Streaming Consolidation Looming in Europe
- RENE PL : REN FY Net Income EU149.2M Vs. EU111.8M Y/y
- RUI FP : Rubis FY Ebitda Beats Estimates
- SMDS LN : Mondi Agrees in-Principle to Buy DS Smith at 373p/Shr
- SMDS LN : Mondi’s DS Smith Takeover Price Is Higher Than Expected: MS
- SON PL : Sonae Has 80.58% of Musti Shares After Subsequent Offer Period
- TLGO SM : Ganz-Mavag Announces Takeover Bid for Talgo at EU5/SHR, Board Says Ganz-Mavag Bid ‘Attractive’ (March. 7)
- TLGO SM : Spain Says Talgo Part of Strategic Industry, Will Analyze Bid
- VIMIAN SS : Vimian Plans SEK1.6B Rights Issue, Move Listing to Main Market
- VIV FP : Vivendi FY Ebita Beats Estimates
- VOD LN : Vodafone Market Sentiment Questions Strategy, Catalyst Timing
- FHZN SW : Zurich Airport FY Passengers 28.9M

>>> Europe : Brokers Upgrades & Downgrades - 8th of March 2024

>>> Up
* A.G. Barr Raised to Equal-Weight at Barclays; PT 522 pence
* Carvana Raised to Sector Perform at RBC; PT $90
* Coinbase Raised to Neutral at Goldman
* Encavis Raised to Hold at Stifel; PT 13.90 euros
* Equinor Raised to Neutral at Redburn; PT 300 kroner
* GE Raised to Overweight at JPMorgan; PT $180
* Marvell Technology Raised to Buy at Summit Insights
* Novo ADRs PT Raised to $160 from $140 at Cantor
* Redeia Raised to Outperform at RBC; PT 20 euros
* UBS Raised to Overweight at Morgan Stanley; PT 33 Swiss francs
* Vetropack Raised to Buy at Stifel; PT 57 Swiss francs

>>> Down
* a.k.a. Brands Cut to Hold at Truist Secs; PT $10
* Petrobras ADRs Cut to Neutral at Grupo Santander; PT $18
* PZ Cussons Cut to Equal-Weight at Barclays; PT 111 pence
* Sampo Cut to Hold at HSBC; PT 43 euros

>>> Initiation
* About You Rated New Buy at Stifel; PT 6 euros
* Birkenstock Rated New Sell at Hedgeye
* Brenntag Cut to Hold at SocGen; PT 90 euros
* Gap Rated New Sell at Hedgeye
* Lonza Rated New Outperform at Oddo BHF; PT 535 Swiss francs
* Papoutsanis Rated New Buy at Eurobank Equities; PT 3 euros
* Poste Italiane Rated New Buy at Jefferies; PT 13.90 euros

>>> Call
* Mondi’s DS Smith Takeover Price Is Higher Than Expected: MS

After Hours Summary: IOT +14.7%, FNKO +13.4%, DOCU +9.5%, GPS +4.4% higher on ea

After Hours Summary: IOT +14.7%, FNKO +13.4%, DOCU +9.5%, GPS +4.4% higher on earnings; BBAI -18.3%, MDB -7.4%, MRVL -5.4%, GWRE -4.3%, COST -3.5%, AVGO -1.6% lower on earnings
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: PRCH +21.9%, IOT +14.7%, FNKO +13.4% (also CFO/ COO Steve Nave to resign; names new CFO; COO position to remain unfilled), GRND +12.4%, DOCU +9.5%, SWBI +8.6%, GPS +4.4%, METC +0.3%
Companies trading higher in after hours in reaction to news: BGNE +2.9% (announces FDA accelerated approval of BRUKINSA), SPRY +1.7% (reviews recent clinical updates and commercial opportunity), MEC +0.9% (files mixed shelf securities offering), TCPC +0.7% (TCPC and BKCC shareholders approve merger), CLF +0.4% (increases current spot market base prices), MDT +0.3% (authorizes new $5 bln share repurchase program), BKCC +0.3% (TCPC and BKCC shareholders approve merger), HUM +0.1% (files mixed shelf securities offering), ASO +0.1% (increases dividend), VINP +0.1% (agrees to combination with Compass to create Latin American alternative asset manager)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: COOK -20.7%, BBAI -18.3%, ASLE -18.1%, SVV -10.4%, DOMO -8.5%, MGNX -8.3%, MDB -7.4%, MRVL -5.4% (also authorizes new $3 bln share repurchase program), ARCT -5.1%, GWRE -4.3%, COST -3.5%, EOLS -2.4%, RWAY -2.3%, AVGO -1.6%, LOCO -0.7%
Companies trading lower in after hours in reaction to news: DKL -7.8% ($120 mln common unit offering), NDLS -6.2% (names new CEO), MAX -4.3% (launches 3 mln share offering), ALDX -2.3% (files $200 mln mixed shelf securities offering), ZYME -2.1% (files for 5,086,521 shares of common stock by selling shareholders), AKRO -1.9% (announces publication of Phase 2b SYMMETRY Cohort D Study), LCTX -1.8% (files $200 mln mixed shelf securities offering), MBI -1.4% (CFO to step down, names new CFO), AGCO -1.1% (files mixed shelf securities offering), FWRG -1% (6 mln share offering), ML -0.8% (files $50 mln mixed shelf securities offering)

>>> US Close Dow +0.34% S&P +1.03% Nasdaq +1.51% Russell

Closing Stock Market Summary
Today's trade featured a strong positive bias. The S&P 500 (+1.0%) and Nasdaq Composite (+1.5%) were pushed to all-time highs in a broad advance. The former is now 0.4% higher this week and the latter is unchanged after a soft start to the week for stocks.

Upside moves were partially driven by carryover momentum from yesterday's rally, garnering added support from outperforming mega cap and semiconductor-related names. The Vanguard Mega Cap Growth ETF (MGK) logged a 1.4% gain and the PHLX Semiconductor Index (SOX) jumped 3.4% in front of earnings news this afternoon from some names in the space.

NVIDIA (NVDA 926.69, +39.69, +4.5%), which reached a new all-time today, Meta Platforms (META 512.29, +16.20, +3.3%), and Alphabet (GOOG 135.24, +2.68, +2.0%) were among the most influential winners in the market.
Advancing issues led declining issues by a 5-to-2 margin at the NYSE and by a 3-to-2 margin at the Nasdaq.

Strength in the mega cap and semiconductor spaces drove the outperformance of the S&P 500 information technology sector (+1.9%) and the communication services sector (+1.8%). Nine of the 11 sectors registered gains today while the financials (-0.2%) and real estate (-0.1%) sectors saw slim declines.

Today's positive bias was also stemming from some relief that Fed Chair Powell's remarks before the Senate Banking Committee did not produce any surprise headlines. Mr. Powell echoed prior comments, indicating that it will likely be appropriate to cut rates later this year if the economy evolves as expected. There's also some positive buzz around the potential for the ECB to cut rates later this year like the Fed is expected to.

This morning's economic data largely supported a soft landing scenario for the economy, which also contributed to today's upside bias. The 10-yr note yield hit 4.06% after the release of the weekly initial jobless claims, Q4 Productivity, and January Trade Balance Report, but it settled at 4.09%.
  • S&P 500: +8.1% YTD
  • Nasdaq Composite: +8.4% YTD
  • S&P Midcap 400: +6.7% YTD
  • Dow Jones Industrial Average: +2.9% YTD
  • Russell 2000: +2.8% YTD

Reviewing today's economic data:
  • Initial jobless claims for the week ending March 2 were unchanged at 217,000 (consensus 217,000). Continuing jobless claims for the week ending February 24 increased by 8,000 to 1.906 million.
    • The key takeaway from the report is the low glide path initial claims (a leading indicator) continues to follow, which is indicative of a labor market that remains on a relatively encouraging glide path.
  • Q4 Productivity growth was left unchanged at 3.2% (Briefing.com consensus 3.1%) while unit labor costs were revised down to 0.4% (consensus 0.6%) from 0.5%.
    • The key takeaway from the report was the same as the one for the advance estimate: unit labor costs were tame in the fourth quarter thanks to the solid increase in productivity.
  • The January trade deficit widened to $67.4 billion (consensus -$63.3 billion) from a downwardly revised $64.2 billion (from -$62.2 billion) for December. The widening was the result of imports being $3.6 billion more than December imports and exports being only $0.3 billion more than December exports.
    • The key takeaway from the report is that the increase in imports and exports, most of which was concentrated in autos and capital goods, is indicative of a pickup in global trade that would be associated with a pickup in economic activity.
  • Weekly EIA Natural Gas Inventories showed a draw of 40 bcf versus last week's draw of 96 bcf

Friday's economic calendar features:
  • 8:30 ET: February Nonfarm Payrolls (consensus 195,000; prior 353,000), Nonfarm Private Payrolls (consensus 150,000; prior 317,000), Average Hourly Earnings (consensus 0.3%; prior 0.6%), Unemployment Rate ( consensus 3.7%; prior 3.7%), and Average Workweek (consensus 34.3; prior 34.1)

WWD : Frasers Group Shuts Matches Two Months After Purchasing It for 52 Million

Frasers Group Shuts Matches Two Months After Purchasing It for 52 Million Pounds
Frasers is placing London retailer Matches into administration in another blow for online luxury retail.

LONDON — Frasers Group is putting luxury online retailer Matches into administration two months after buying it at a knockdown price from Apax Partners.

In a statement released to the London Stock Exchange late Thursday, Frasers said Matches “has consistently missed its business plan targets and … has continued to make material losses. While Matches’ management team has tried to try to find a way to stabilize the business, it has become clear that too much change would be required to restructure it, and the continued funding requirements would be far in excess of amounts that the group considers to be viable.”

Frasers added that in light of the situation, Matches has been put into administration. “Frasers remains committed to the luxury market and its brand partners,” the company added.

The decision to shut Matches is an about-face for Frasers, which paid 52 million pounds for the retailer shortly before Christmas and touted its turnaround plans.

At the time, Michael Murray, chief executive officer of Frasers, said that “while the global luxury environment is softer, we are confident that, by leveraging our industry-leading ecosystem, we will unlock synergies and drive profitable growth for Matches.”

Murray described Matches as “a leader in online luxury retail which has incredible relationships with its brand partners. This acquisition will strengthen Frasers’ luxury offering, further deepening our relationships and accelerating our mission to provide consumers with access to the world’s best brands.”

Nick Beighton, Matches’ CEO, was equally upbeat at the time of the sale.

“Being part of Frasers, with their utter commitment to luxury, will give this business access to greater scale, best-in-class retail expertise, and the financial stability it needs to more effectively deliver for our brand partners and our customers,” Beighton said.

The turnaround job was always going to be a big one. In the fiscal year ended on Jan. 31, 2023, Matches’ sales dipped 1.7 percent to 380.1 million pounds, while losses widened to 70.9 million pounds from 39.8 million pounds.

However, Frasers’ decision should come as no surprise. The company’s ultimate owner, Mike Ashley, is known in the U.K. as the Grim Reaper of the high street.

He specializes in buying stakes in distressed companies, or in brands that sell (or can potentially sell) through his retail chains, often at a steep discount.

The purchase price of Matches was a fraction of the $1 billion price that private equity firm Apax was reported to have paid for it in 2017. It is likely some of the brands currently supplying Matches will now sell their wares at Frasers Group retailers.

Frasers owns retail brands including Sports Direct, Flannels, Agent Provocateur, Jack Wills and the House of Fraser stores.

The collapse of Matches is the latest chapter in a sorry tale of online fashion retailers both in the U.K. and abroad. Companies that were once riding high and viewed as go-to destinations for fashion, luxury, and creative, immersive retail, have watched their valuations evaporate amid slowing demand for luxury, and spiking interest rates and inflation.

As reported, Farfetch was purchased out of administration by Coupang late last year, while Compagnie Financière Richemont continues to look for a buyer for Yoox Net-a-porter after writing down the value of the pioneering online fashion retailer.

Richemont was on the brink of selling YNAP to Farfetch before it collapsed and called off the deal after Coupang purchased the company.

The fate of Browns, which was part of the Farfetch portfolio, remains unclear. According to Italian press reports, Coupang has hired Rothschild to find a buyer for the retailer.