>>> US after hours

After Hours Summary: FDX +5.2% higher on earnings; KBH -2.6% lower on earnings; KDP -0.3% and DHI get new CEOs

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: FDX +5.2% (also to repurchase additional $1.5 bln of stock during FY24)

Companies trading higher in after hours in reaction to news: IVA +11.2% (signs licensing agreement for lanifibranor in Japan and South Korea), AXTI +6% (receives govt approval to resume shipping gallium arsenide and germanium substrates to certain customers in China), GFS +3.3% (awarded $3.127 bln U.S. Defense Microelectronics Activity contract), IRON +2% (receives FDA fast track designation for MWTX-003), VCEL +1.5% (announces US commercial availability of NexoBrid), PMVP +1.4% (to present updated Phase 1 Data on PC14586), CTOS +1.4% (approves stock repurchase program of up to $25 mln), UPS +1% (in sympathy with FDX earnings), ENVX +0.6% (acquires Korea-based coating supplier), GPOR +0.2% (expands repurchase authorization to $650 mln)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: KBH -2.6%

Companies trading lower in after hours in reaction to news: TRNS -7.4% (stock offering), CENT -2% (CEO Tim Cofer to step down; reaffirms FY23 EPS guidance), NCNO -1.2% (selected by Bendigo and Adelaide Bank to simplify their business banking ops), RJF -0.9% (reports operating data for August), DYN -0.4% (receives FDA Orphan Drug Designation for DYNE-101), KDP -0.3% (names Tim Cofer as COO, will later become CEO)

>>> FedEx beats by $0.84, reports revs in-line

FedEx beats by $0.84, reports revs in-line; guides FY24 EPS in-line, expects flat yr/yr revs; to repurchase additional $1.5 bln of stock during FY24

Reports Q1 (Aug) earnings of $4.55 per share, excluding non-recurring items, $0.84 better than the FactSet Consensus of $3.71; revenues fell 6.5% year/year to $21.68 bln vs the $21.74 bln FactSet Consensus.
FedEx Express operating income increased 18% during the quarter, as a 9% decline in revenue was more than offset by reduced operating expenses. Cost reductions and transformation efforts that benefited the quarter included structural flight reductions, the alignment of staffing with volume levels, parking aircraft, and shifting to one delivery wave per day in the U.S.
FedEx Ground operating income increased 59% during the quarter primarily due to yield improvement and cost reductions. Cost per package declined more than 2%, driven by lower line-haul expense and improved dock and first- and last-mileproductivity.
FedEx Freight operating income decreased 26% during the quarter driven by lower fuel surcharges and shipments, partially offset by base yield improvement. FedEx Freight completed the planned closure of 29 terminal locations during August.
Co issues in-line guidance for FY24, sees EPS of $17.00-18.50 (up at the low end from $16.50-18.50), before the MTM retirement plans accounting adjustments and excluding costs related to business optimization initiatives, vs. $17.49 FactSet Consensus.
Co expects FY24 (May) revs to remain flat yr/yr, narrowed from its previous forecast of flat to low-single-digit percent growth. FactSet Consensus calls for -0.5% growth yr/yr.
Co expects to repurchase an additional $1.5 billion of common stock during fiscal 2024 after completing a $500 mln accelerated share repurchase transaction during the quarter.

>>> US Treasury Market Summary

Treasury Market Summary
FOMC Solidifies "Higher for Longer" Narrative
  • U.S. Treasuries ended the midweek session on a mixed note after reversing from highs in reaction to the FOMC Statement for September. Treasuries spent the first few hours of action in a slow rise that pressured yields on 10s and shorter tenors from their highest levels of the year. The early advance sent yields back to yesterday's lows, but the entire complex succumbed to renewed selling pressure as the market received the September FOMC Statement. As expected, the Statement did not call for another rate hike at this time, but the accompanying economic projections pointed to a higher degree of hawkishness among policymakers. The FOMC maintained its median rate forecast for this year, but the forecast for 2024 was increased to 4.60-5.40% from 4.40-5.10%. This means that the FOMC currently sees only about 50 bps of potential rate cuts next year, down from 100 bps in June. With regards to inflation, the FOMC lowered its median core PCE inflation forecast for this year to 3.7% from 3.9% while the forecast for 2024 was left unchanged at 2.6%. During his press conference, Fed Chairman Powell repeated that slowing inflation will require a period of below-trend GDP and that full effects of tightening have not been seen yet. The post-FOMC volatility sent the 2-yr note back into the red while longer tenors finished closer to the midpoint of today's range. Crude oil backed off its highest level since early November while the U.S. Dollar Index fell 0.1% to 105.11.
  • YieldCheck:
    • 2-yr: +1 bp to 5.13%
    • 3-yr: +1 bp to 4.81%
    • 5-yr: -1 bp to 4.52%
    • 10-yr: -2 bps to 4.35%
    • 30-yr: -3 bps to 4.40%
  • News:
    • There was growing speculation that the Bank of England will not raise its bank rate tomorrow.
    • China exported no gallium nor germanium in August, according to customs data.
    • China's Transport Ministry announced that international cruise arrivals and departures will be fully resumed.
    • There was some speculation that the Reserve Bank of India intervened in the foreign exchange market to stop the rupee from continuing to a fresh record low against the dollar.
    • Standard & Poor's affirmed Australia's AAA rating with a Stable outlook.
    • Japan's August trade deficit reached JPY560 bln, as expected (last deficit of JPY600 bln) as imports fell 17.8% yr/yr (expected -19.4%; last -13.6%) and exports decreased 0.8% yr/yr (expected -1.7%; last -0.3%).
    • South Korea's August PPI was up 0.9% m/m (last 0.3%), rising 1.0% yr/yr (last -0.3%).
    • Australia's August MI Leading Index was unchanged m/m (last 0.0%).
    • New Zealand's Q2 Current Account deficit reached 7.5% of GDP (last 8.5% of GDP).
    • Eurozone's July Construction Output rose 0.8% m/m (last -1.2%).
    • Germany's August PPI was up 0.3% m/m (expected 0.2%; last -1.1%) but down 12.6% yr/yr, as expected (last -6.0%).
    • U.K.'s August CPI was up 0.3% m/m (expected 0.7%; last -0.4%), rising 6.7% yr/yr (expected 7.0%; last 6.8%). Core CPI was up 0.1% m/m (expected 0.6%; last 0.3%), rising 6.2% yr/yr (expected 6.8%; last 6.9%) Input PPI was up 0.4% m/m (expected 0.2%; last -0.4%) and Output PPI was up 0.2% m/m (expected 0.1%; last 0.2%).
  • Today'sData:
    • The weekly MBA Mortgage Index rose 5.4% to follow last week's 0.8% decrease. The Purchase Index was up 2.3% while the Refinance Index rose 13.2%.
    • Weekly crude oil inventories decreased by 2.135 mln barrels after increasing by 3.954 mln barrels a week ago.
  • Commodities:
    • WTI crude: -0.8% to $89.75/bbl
    • Gold: +0.8% to $1968.50/ozt
    • Copper: +0.5% to $3.77/lb
  • Currencies:
    • EUR/USD: UNCH at 1.0681
    • GBP/USD: -0.3% to 1.2355
    • USD/CNH: UNCH at 7.3012
    • USD/JPY: +0.2% to 148.03
  • TheAhead:Day
    • 8:30 ET: Weekly Initial Claims ( consensus 225,00; prior 220,000), Continuing Claims (prior 1.688 mln), Q2 Current Account Balance ( consensus -$222.0 bln; prior -$219.3 bln), and September Philadelphia Fed Survey (consensus -2.0; prior 12.0)
    • 10:00 ET: August Existing Home Sales ( consensus 4.10 mln; prior 4.07 mln) and August Leading Indicators (consensus -0.4%; prior -0.4%)
    • 10:30 ET: Weekly natural gas inventories (prior +57 bcf)

WSJ : Egon Schiele Artworks Stolen by Nazis Returned to Family

Egon Schiele Artworks Stolen by Nazis Returned to Family
MoMA, the Ronald S. Lauder Collection and others agreed to return the pieces to Fritz Grünbaum’s heirs

Several prominent museums and art collectors have returned artwork by Austrian expressionist Egon Schiele to the family of a Jewish cabaret performer who owned them before he was killed by the Nazis.

The seven pieces of artwork were returned to the heirs of Fritz Grünbaum, an Austrian cabaret performer who was murdered in the Dachau concentration camp in Germany in 1941, the Manhattan district attorney’s office said Wednesday. The Nazis stole hundreds of pieces of art owned by Grünbaum, including more than 80 works by Schiele, the office said.

The Museum of Modern Art, the Ronald S. Lauder Collection, the Morgan Library & Museum, the Vally Sabarsky Trust, and the Santa Barbara Museum of Art agreed to return the works after prosecutors presented evidence the art was stolen by Nazis, the district attorney’s office said.
‘Standing Woman’ by Egon Schiele was returned by the Museum of Modern Art. PHOTO: MANHATTAN DISTRICT ATTORNEY’S OFFICE

The artworks are valued between $780,000 and $2.75 million, according to the Manhattan district attorney’s office. The Museum of Modern Art returned “Standing Woman” and “Girl Putting on Shoe.” The Morgan Library & Museum surrendered “Self Portrait.”
The Morgan Library & Museum surrendered ‘Self Portrait.’ PHOTO: THE MORGAN LIBRARY & MUSEUM/MANHATTAN DISTRICT ATTORNEY’S OFFICE

The Morgan Library & Museum declined to comment, and the Museum of Modern Art didn’t respond to a request for comment.

The Ronald S. Lauder Collection returned “I Love Antithesis,” a watercolor and pencil drawing on paper. Ronald Lauder, president of the World Jewish Congress and an heir to theEstée Lauder
cosmetics company, said in a statement he acquired the piece from an art dealer decades after it was stolen.

‘I Love Antithesis,’ a watercolor and pencil drawing on paper, was returned by the Ronald S. Lauder collection. PHOTO: MANHATTAN DISTRICT ATTORNEY’S OFFICE

“I am pleased and honored to be able to help Fritz Grünbaum’s heirs continue their laudable efforts to recover his legacy,” Lauder said.

Lauder wrote an opinion piece in The Wall Street Journal in 2014, calling on museums to return Nazi-looted works of art.

The Santa Barbara Museum of Art gave back “Portrait of the Artist’s Wife, Edith,” a pencil drawing. Wright Ludington, one of the museum’s founders, donated the piece in 1957.

A pencil drawing called ‘Portrait of the Artist’s Wife, Edith’ was returned by the Santa Barbara Museum of Art. PHOTO: MANHATTAN DISTRICT ATTORNEY’S OFFICE

The Vally Sabarsky Trust returned “Portrait of a Boy,” and “Seated Woman.” An attorney who has represented the estate of New York-based art dealer Serge Sabarsky declined to comment.

Timothy Reif, a relative of Fritz Grünbaum, said the district attorney’s office has “succeeded in solving crimes perpetrated over 80 years ago.”
‘Portrait of a Boy’ PHOTO: MANHATTAN DISTRICT ATTORNEY’S OFFICE

The Nazis captured Grünbaum in 1938 and forced him to sign a power of attorney document that gave control of his affairs to his wife, Elisabeth Grünbaum, while he was imprisoned, prosecutors said. She later handed over his entire collection to the Nazis.

The Nazis designated Schiele as a degenerate painter in part because he often enlisted sex workers to pose for him and painted scenes of nude lovers in intimate contortions that are now hailed as a peak of Austrian expressionism. He also painted a number of self-portraits that have sold for as much as $12.3 million.

Grünbaum’s Schiele collection later appeared at a Swiss auction house in the 1950s, the district attorney’s office said. The owner of the auction house—Eberhard Kornfeld, who died in April—received hundreds of Nazi-looted artworks stolen from Holocaust victims.

Kornfeld sold most of Grünbaum’s Schiele works to Otto Kallir, an Austrian-American owner of an art gallery in New York City, prosecutors said. Kallir died in 1978.

A New York civil court ruled in 2018 that Grünbaum never legally relinquished the rights to his art collection, making his heirs the rightful owners of the works. The ruling forced an art dealer to turn over two works by Schiele over to Grünbaum’s heirs.

“I hope this moment can serve as a reminder that despite the horrific death and destruction caused by the Nazis, it is never too late to recover some of what we lost, honor the victims, and reflect on how their families are still impacted to this day,” said Manhattan District Attorney Alvin Bragg.

>>> Fed Chair Powell: Labor demand still exceeds supply; expect rebalancing to c

Fed Chair Powell: Labor demand still exceeds supply; expect rebalancing to continue

Statement:
- Banking system remains resilient
- Prepared to adjust policy if risks emerge
- Economic activity has been expanding at a solid pace
- Job gains have slowed in recent months but remain strong
- "inflation remains elevated" and Fed remains "highly attentive to inflation risks."

Post rate decision press conference
- Squarely focused on dual mandate
- FOMC strongly committed to bringing inflation to 2%
- Without price stability we won't have a strong jobs market
- Full effects of tightening yet to be felt, have covered a lot of ground
- Fed is in position to proceed carefully on firming rate
- Decisions will be based on incoming data and evolving riskoutlook
- Growth in real GDP has come in above expectations
- US economic activity expanding at solid pace; consumer spending particularly robust; housing activity has picked up
- Higher rates weighing on business fixed investment
- Labor market remains tight but better balance is seen; unemployment at 3.9% remains low
- Nominal wage growth has shown some signs of easing
- Inflation well above goal; has moderated somewhat but expectations appear well anchored; have long way to go; aware that inflation poses significant hardship
- Current policy stance is restrictive; will remain restrictive until inflation is at 2%- Fed estaimtes core PCE rose 3.9% y/y in august
- Projections are not a plan, policy will adjust as appropriate; will make decisions meeting by meeting; in a position to proceed carefully; mindful of uncertainties
- Reducing inflation is likely to require a period of below-trend growth,, some softening of labor conditions

Q&A
- The fact we decided to keep rate where it is doesn't mean we have decided or have not , reached stance of policy we are seeking
- We are not making a policy decision about if rates are sufficiently restrictive
- Want to see convincing evidence we've reached appropriate level; need to see more progress
- Real rates are meaningfully positive now; need to be positive for some time
- Summary of economic projection is not a plan
- Economic activity has been stronger than all expected
- Proposal at the meeting was to maintain the current policy stance, unanimous support for that
- Recent labor market report was good example of what we want to see
- People want to be careful not to jump to a conclusion one way or the other; thats why given how far we've come, we are in a position to proceed carefully meeting by meeting
- As a group its a pretty tight cluster around end-of-year rate view
- We are fairly close to where we need to get
- Wouldn't attribute huge importance to one hike in macroeconomic terms
- Stronger economic activity is main reason for needing to do more with rates
- In terms of neutral rate, we only know when we get there; it may be that the neutral rate has risen and is higher than the longer-run rate
- Still thinks there will need to be some softening of labor market; natural rate of unemployment is coming down

>>> Insider Trading: notable purchases -- Execs add to HAIN; notable sales -- Di

Insider Trading: notable purchases -- Execs add to HAIN; notable sales -- Directors active in RHP
Buyers:
  • AVGO Director bought 1,000 shares at $858.9582 worth ~$859K.
  • CBSH Director bought 5,000 shares at $48.1003 worth ~$241K.
  • DOMO Founder and CEO bought 39,300 shares at $9.65 - $9.98 worth ~$384K.
  • EHTH Director bought 15,000 shares at $6.92 - $7.10 worth ~$106K.
  • HAIN President / CEO and Global Chain Supply Chain Officer bought a total of 40,000 shares at $9.96 - $10.18 worth more than $400K.
  • RXO Director bought 11,186 shares at $17.92 worth ~$200K.
  • SOL Chairman / 10% owner bought 139,568 shares at ~$3.10 worth ~$433K.
Sellers:
  • RHP Directors (2) sold 2,815 shares at $85.13 - $85.71 worth ~$240K.
For regular updates on our insider summaries and commentary, please add Briefing ticker INSID to ticker alerts. Transactions exclude pre-arranged trading plans. Sales exclude option-related sell-offs.

>>> UNCOOKED ALERT: Adevinta ASA said to ...

UNCOOKED ALERT: Adevinta ASA said to ...
Adevinta ASA, the Norway-listed European classifieds and online marketplace firm, is at the centre of takeover rumours.

People following the situation have heard speculation Adevinta may have attracted interest from an acquirer for some or all of the business.

However, the identity of the company circling Adevinta remains unclear.

Some people following the situation suggested Adevinta ASA might be of interest to some of the parties that participated in the auction of Ebay's European classified business in 2020.

Those participants included Axel Springer, which is owned by American private equity giant KKR, and Prosus, a company backed by South African giant Naspers.

Several other private equity firms - such as Blackstone, SilverLake and General Atlantic - also previously took a look the Ebay classifieds unit when it was for sale in 2020.

Adevinta's largest shareholders include Ebay, private equity firm Permira and Schibsted, a Norwegian media and publishing group.

A lock up that prevents these shareholders from selling their shareholdings in Adevinta is reported to expire on October 14 this year and may provide the catalyst for a deal.

FT : Chelsea FC raises $500mn from Ares

Chelsea FC raises $500mn from Ares
Premier League club joins forces with US alternative asset manager as it looks for ways to boost revenue

Chelsea FC has raised about $500mn in fresh investment from Ares Management as the Premier League side’s US owners look for ways to fund expensive stadium improvements and build stakes in more football clubs.

Ares, the US alternative asset manager, has provided the capital injection, according to two people with knowledge of the matter. One of the people described it as a preferred equity deal.

Chelsea, which is controlled by a consortium including private equity group Clearlake Capital and US financier Todd Boehly, is looking for ways to boost revenue after an expensive transfer window.

Ares, Clearlake and Boehly declined to comment. Chelsea did not immediately respond to a request for comment.

Under Clearlake and Boehly, who acquired the club for £2.5bn from sanctioned Russian billionaire Roman Abramovich in May 2022, Chelsea has spent hundreds of millions of pounds on refreshing its squad of players.

“We have bought an asset that is very coveted by many other potential buyers,” said Clearlake’s co-founder José Feliciano, speaking at the IPEM private equity conference in Paris. “Ultimately, we are extremely aligned with that supporter and fan base because the best way to make our club more valuable is to win.”

However, the new owners have yet to see their investment pay off on the pitch, at a club where fans are accustomed to winning trophies.

Chelsea finished 12th in the league last season, missing out on what would have been a lucrative qualification for the Uefa Champions League. The new owners have already parted ways with two managers and appointed former Tottenham Hotspur coach Mauricio Pochettino to lead the side.
However, the Blues have won just one of five league matches this season, leaving them 14th in the table. Commercially, the club has failed so far to conclude a deal for a front-of-shirt sponsor, a slot that would usually command tens of millions of pounds a year. 

“The team had a tough first season, our first season,” Feliciano said, but added: “We have a tremendous amount of talent.”

The west London club is deciding whether to redevelop its Stamford Bridge home ground or to build a new stadium at Earl’s Court. The 40,000-capacity Stamford Bridge stadium limits Chelsea’s ability to generate revenues and compete against rivals with larger and more modern facilities.

But Feliciano said the company could be better run from a financial perspective. “I think what we are trying to do is reduce the salary and essentially the opex [operating expenses] of the business by over $100mn per year,” Feliciano added.

Separately, Boehly and Clearlake agreed to acquire French team RC Strasbourg in June.

Ares has accumulated a series of interests across the sport, including in Atlético de Madrid and Eagle Football, the group that acquired French side Olympique Lyonnais last year. Last September, Ares said it had raised $3.7bn to invest in sports leagues, teams, as well as media and entertainment companies.

The alternative asset manager typically invests across the capital structure, striking hybrid deals that can include upside from equity, but also protection through financing mechanisms that draw on Ares’s expertise in credit markets.