>>> What to look at today - 29th of March 2023

A rally in Hong Kong stocks reverberated across Asia after news of a planned revamp of Alibaba Group Holdings Ltd. bolstered demand for Chinese technology shares. Gains for mainland and Hong Kong equities pushed a gauge of regional stocks higher for a second day. Japanese and Australian equities also gained, while US equity futures advanced to effectively unwind a decline on Tuesday. The Hang Seng Index climbed more than 2% and an index of Hong Kong’s tech stocks jumped over 3% as investors rushed back to Alibaba shares and other large tech companies that have been stung by a crackdown from Beijing over the past two years. Alibaba surged 13%, Tencent Holdings Ltd. jumped 3% and Baidu Inc. rose more than 2%. Shares in Japan-listed Softbank Group Corp., which owns a large stake in Alibaba, surged as much as 6.5%.  The gains for Alibaba broadly matched an advance in its US-listed shares on Tuesday after the e-commerce giant said it would split into six units in a shakeup that promises to yield several initial public offerings. Swaps traders have priced in more than a 50% probability the Fed will raise rates by a quarter point at its next meeting, with plans to ease thereafter. However, several strategists have joined BlackRock Investment Institute in saying markets are wrong in expecting imminent rate cuts.  Investors were also focused on European banks after French prosecutors said lenders including Societe Generale SA and BNP Paribas SA face collective fines of more than 1 billion euros ($1.1 billion) as part of a probe into tax fraud and money laundering. oil was higher after a clash between Iraq and its Kurdish region curtailed exports. Gold was little changed and Bitcoin traded around $27,300. US After Hours LULU +12.2%, CALM +3.7% higher on earnings; MU -1.1%, PRGS -2.8% lower on earnings; BPMC +3.5% higher as FDA lifts partial clinical hold.

Nikkei +0.57% Hang Seng +1.91% CSI +0.24% Shanghai -0.04% Shenzen +0.12%

Eur$ 1.0835 CNH 6.8870 CNY 6.8868 JPY 131.64 GBP 1.2326 CHF 0.9206 RUB 77.0875 TRY 19.1187 CLA 73.53 +0.46% Gold 1,967 -0.33% BTC 27,385 +0.26% ETH 1,781.50 +0.37%

S&P +0.64% Nasdaq +0.61% EuroStoxx +0.48% FTSE +0.21% Dax +0.41% SMI +0.36%

Macro :
- Italy Wants to Ban Cultivated Food to Protect Culinary Heritage
- EU Commission to Work on Standards for Small Reactors: Simson
- European Equity Volatility Returned to War Peak With CS Failure
- European Real Estate Faces ‘Major’ Headwind From Yields: JPM

Keep an eye on :
- ACLN SW : Accelleron FY Revenue Meets Estimates
- ACS SM :*FCC, ACS, SACYR VIE FOR PORTUGAL HIGH-SPEED TRAIN: ECONOMISTA
- ADS GY : Watch Adidas, Puma as Lululemon Beats Estimates on High Demand
- BABA US : Alibaba’s Cheap Valuation Shows Big Room to Grow With Overhaul
- MT NA : ArcelorMittal Shares Rise After UBS Raises to Buy From Sell
- AT1 GY : Aroundtown FY FFO I per Share Beats Estimates, Aroundtown Suspends 2022 Dividend Payout
- AT1 GY : Aroundtown Announces Cash Tender Offers for 2025, 2026 Notes
- 1211 HK : BYD Gains as Strong EV Sales Drive Spike in Profit
- COLL SS : Collector Bank Board Proposes Name Change to Norion Bank
- DNO NO : Oil Firm Starts Shutdown in Kurdistan Amid Iraq-Turkey Dispute
- DRX LN : Drax Investor Asks UK Biomass Firm to Drop Canada Forest Permits
- ECV GY : Encavis Sees 2023 Oper Ebitda Above EU310M, Est. EU344.8M
- HOLN SW : Holcim Buys Quimexur, No Financial Terms Disclosed
- IFX GY :*INFINEON SEES 2Q REV. ABOVE EU4B, SAW ABOUT EU3.9B, Raises Estimates on Strength in Auto, Industrial Sales
- IFX GY : Infineon Rises in US After Raising Revenue, Margin Forecasts
- ICOS IM : Intercos Holders L Catterton, OTPP Offer 5.5m Shares @ EU13.25/Share
- JEN GY : Jenoptik 4Q Ebitda Beats Estimates
- SKB GY : Koenig & Bauer Sees 2023 Ebit Margin About 3%
- KTN GY : Kontron Sees 2023 Net Income EU66M, Saw Above EU60M
- LULU US : Lululemon FY Net Revenue Forecast Beats Estimates
- MAERSKB DC : Maersk CEO Says Slow Steaming Makes Ship Idling Unnecessary Now
- MBG GY : Kuwaiti Wealth Fund to Sell About 20 Million Mercedes Shares, Offering Placement Price €69.27/SHR
- MU US : Micron Sees 3Q Adj Rev $3.5B to $3.9B, Est. $3.75B: Snapshot
- NESN SW : Nestle Is Said to Make Bid to Acquire BRF’s Pet Food Unit
- OCI NA : Activist Ubben Urges Chemicals Producer OCI to Explore Options
- SWTQ SW : Schweiter Technologies CFO Martin KlöTi to Step Down in Sept.
- SNH GY : Steinhoff’s Plan to Implement Maturity Extension Transaction
- SREN SW : Sergio P. Ermotti to Step Down as Swiss Re Chairman After AGM
- TRI FP : Trigano 2Q Revenue Misses Estimates
- UBSG SW : UBS Names Sergio P. Ermotti as New Group CEO
- UCG IM : ECB Backs UniCredit Buyback in Sign of Confidence for Banks
- WIE AV : Wienerberger May Buy Back Up to 1M Shares, or Up to About 0.9%

>>> Europe : Brokers Upgrades & Downgrades - 29th of March 2023

>>> Up
* 3i PT Raised to 2,313 pence from 2,075 pence at Morgan Stanley
* Acciona Raised to Outperform at Grupo Santander; PT 231 euros
* ASMI Raised to Equal-Weight at Morgan Stanley; PT 320 euros
* Bankinter Raised to Neutral at Oddo BHF; PT 6.90 euros
* BCP Raised to Buy at Deutsche Bank; PT 26 euro cents
* Coloplast Raised to Equal-Weight at Barclays; PT 840 kroner
* CPH Chemie & Papier Raised to Buy at Baader Helvea
* ITM Power Raised to Hold at Berenberg
* Rovio Raised to Accumulate at Inderes; PT 8 euros
* Tesco Raised to Overweight at Morgan Stanley; PT 296 pence
* WPP Raised to Outperform at Exane

>>> Down
* Digital 9 Infrastructure/Fund Cut to Underperform at Jefferies
* Schibsted Cut to Hold at Nordea
* Smith & Nephew Cut to Underweight at Barclays
* UBS Group Cut to Sector Perform at RBC; PT 20 Swiss francs
* WITHSECURE CUT TO HOLD VS BUY AT BERENBERG, PT EU1.6

>>> Initiation
* Coca-Cola Femsa ADRs Rated New Buy at William O'Neil
* Deere Rated New Outperform at Daiwa; PT $440
* DS Smith Reinstated Neutral at Exane; PT 310 pence
* Ernst Russ Rated New Buy at Quirin Privatbank AG; PT 7.90 euros
* Klaveness Combination Carriers Rated New Buy at Fearnley
* Martin Marietta Rated New Hold at Baptista Research; PT $370
* Mondi Reinstated Underperform at Exane; PT 1,200 pence
* Pharming Rated New Outperform at RBC; PT 1.80 euros
* SCA Reinstated Underperform at Exane; PT 110 kronor
* Smurfit Kappa Reinstated Outperform at Exane
* Stora Enso Reinstated Outperform at Exane; PT 13.40 euros
* UPM-Kymmene Reinstated Neutral at Exane; PT 31 euros

>>> Call
* ASMI Upgraded to Equal-Weight at Morgan Stanley on AI Tailwinds
* Berenberg Remains Positive on Hydrogen Sector, ITM Power Raised
* European Real Estate Faces ‘Major’ Headwind From Yields: JPM
* Heidelberger Druck Has Many Growth Angles, New Buy at Berenberg
* Pharming Rated Outperform at RBC as Joenja Could Double Revenue
* Tesco Raised at Morgan Stanley on Margin Recovery Upside
* UBS ‘Reluctantly’ Downgraded at RBC Awaiting More Visibility

FT : Sergio Ermotti returns as UBS chief executive

Sergio Ermotti returns as UBS chief executive
Ralph Hamers to remain as adviser in wake of Credit Suisse takeover

UBS has brought Sergio Ermotti back as chief executive to steer its takeover of Credit Suisse.

Ermotti, who was chief executive for nine years before stepping down in 2020, will replace Ralph Hamers, UBS said on Wednesday. Hamers will remain as an adviser during a transition period, the Swiss bank said.

UBS said it acted “in light of the new challenges and priorities facing UBS after the announcement of the acquisition” and cited Ermotti’s previous experience including a restructuring of its investment bank.

“This unique experience, together with his deep understanding of the financial services industry in Switzerland and globally, make Sergio Ermotti ideally placed to pursue the integration of Credit Suisse,” UBS said.

Ermotti will leave Swiss Re, where he is chair.

WWD : Italian Design Brands On Track for IPO, Profits Surge

Italian Design Brands On Track for IPO, Profits Surge
Key Italian furniture, interiors, lighting and kitchens holding company IDB has confirmed its IPO plans after reporting robust 2022 earnings.

MILAN — Italian Design Brands, one of the nation’s largest high-end furniture and design holdings, confirmed Tuesday that its initial public offering will go ahead as planned within the first half of the year, market conditions permitting.

Established in 2015 by Private Equity Partners and a select group of investors through a company called Investindesign, the Milan-based company plans to list its shares on the Euronext exchange and perhaps the Star segment of the Milan Stock Exchange, its chairman and chief executive officer Andrea Sasso told WWD in a statement.

“IDB’s listing project on Euronext Milan and, if the conditions are right, on the Star segment, remains valid and confirmed for the first half of this year, market conditions permitting,” Sasso said. “The IPO is a tremendous pull factor for our companies, which will help bring in new talent and top-level managers,” he added.

On Tuesday, the group reported that its adjusted net profit almost doubled in 2022, reaching 25.5 million euros, compared to 13.3 million euros in 2021. Sales also rocketed 84.8 percent on a pro-forma basis to 266.5 million euros. Italian Design Brands’ adjusted earnings before interest, taxes, depreciation and amortization rose 111 percent to 49.2 million euros in 2022, with a pro-forma margin of 18.5 percent, up from 16.2 percent in 2021, IDB said.

The 2022 pro-forma data was compiled in accordance with the IFRS international accounting standards to include the 12-month results of two recent acquisitions.

In June 2022, IDB acquired the majority of Gamma Arredamenti International, an Italian company specializing in the production of upholstered furniture. In an operation that was finalized earlier this year, IDB entered into the kitchen and systems sector with a majority stake in Cubo Design, an Abruzzo, Italy-based company which owns the Binova and Miton Cucine brands, specializing in the production of modular kitchens and systems.

In total, IDB’s portfolio includes 10 companies and 13 brands including upscale furniture brands Saba Italia, Gervasoni, Meridiani, lighting companies Davide Groppi, Axolight and Flexalighting in North America, as well as luxury contract companies like Modar and Cenacchi International, which makes installation of luxury furnishings for stores, showrooms, offices, hotels and prestigious homes anywhere in the world.

The company’s luxury contract business surged 73.6 percent in 2022 to 68.3 million euros, while its furniture business rose 39.6 percent to 117 million euros on a pro-forma basis.

Last year, about 75 percent of the group’s turnover was generated by exports to 130 countries, lifted by extra-EU markets, particularly the U.S., IDB said.

As reported in 2022, Citigroup and Equita remain the group’s joint global coordinators, an IDB spokesperson confirmed.

Italian Design Brand’s founders have envisaged an IPO since its inception, making it possible to raise the capital to maintain growth rates, usher in new talent and attract top managers.

Market-wide, the war in Ukraine delayed stock market listings in Italy last year and market headwinds continue to hinder companies from listing.

Design Holding, another major Milan-based company owned by private equity firms Investindustrial and Carlyle, which includes B&B Italia, lamp-maker Louis Poulsen, and lighting brand Flos, is also expected by market watchers to list its shares in the near term. In 2021, Fendi partnered with Design Holding to create Fashion Furniture Design, or FF Design, which develops the brand’s Casa business. Design Holding was not available for comment at press time.

According to a report released in April 2022, by Fondazione Symbola, Deloitte Private and Poli, Italy’s design sector is the world’s largest, home to 30,000 companies and fueled by 61,000 employees in 2020.

Aided by demand to renovate and update personal and commercial spaces, Italy’s wood furnishing sector saw a 12.7 percent rise in 2022 versus 2021, increasing its value to 57 billion euros versus 43 billion euros in 2019, according to preliminary figures for 2022, released by wood furnishings consortium Federlegno Arredo.

As Italian firms prepare for Milan Design Week, which runs from April 17 to 23, eyes will turn to the full year 2023 outlook.

FT : China threatens Taiwan over president’s trip to US

China threatens Taiwan over president’s trip to US
Tsai Ing-wen to meet Speaker Kevin McCarthy in Los Angeles after stops in New York, Guatemala and Belize

China has threatened to retaliate if Taiwan’s president Tsai Ing-wen meets US House Speaker Kevin McCarthy during an upcoming trip to the US, amid soaring tensions between Washington and Beijing.

Such a meeting would be “another provocation” that would “sabotage peace and stability in the Taiwan Strait”, the Chinese government’s Taiwan policy body said, pledging to “resolutely hit back”.

The warning came on Wednesday morning as Tsai was preparing to take off on a 10-day trip during which she is scheduled to meet McCarthy in California.

Her visit is deemed crucial to affirming her country’s ability to engage in foreign relations but comes as Beijing’s increasingly assertive foreign policy stance has curtailed her room to manoeuvre.

“Taiwan’s determination to go out into the world will only grow stronger,” Tsai said on her departure from Taipei. “The message I want to send through this trip is that Taiwan will steadfastly safeguard our freedom and democracy and continue to be a force for good in the international society.”

Tsai will stay for two nights in New York on her way to Guatemala and Belize, two of the remaining 13 countries that recognise Taiwan, and for two nights in Los Angeles on her return.

Tsai, whose final term ends next year, will on Thursday receive the Hudson Institute’s Global Leadership Award, previously given to leaders including US president Ronald Reagan and Japanese prime minister Shinzo Abe.

The two brief US visits have been defined as stopovers, a long-running practice that started as a courtesy for Taiwanese presidents but has expanded in length and scope under Tsai, reflecting Washington’s deepening engagement with Taipei.

China claims Taiwan as part of its territory and threatens to attack it if Taipei refuses to submit under its control indefinitely. Last August, Beijing staged unprecedented military exercises and fired missiles over Taiwan for the first time after then-US House Speaker Nancy Pelosi visited Taipei.

Pelosi’s successor McCarthy had also pledged to visit Taiwan. But the Financial Times reported this month that he held off after Tsai suggested they meet in the US instead to limit the risk of a belligerent reaction from Beijing.

Ahead of Tsai’s arrival, senior Biden administration officials said transits through the US by top Taiwanese officials were routine and that China should not “use this upcoming transit as an excuse or pretext to carry out aggressive or coercive activities aimed at Taiwan”.

Officials stressed there had been no change to the US’s “one China” policy, under which Washington recognises Beijing as the sole government of China.

Taiwan’s defence ministry said it was prepared for any Chinese threat during Tsai’s trip, including a “worst-case” scenario that it did not define. It added there were no signs of Chinese military moves ahead of her departure.

However, Beijing has stepped up a political pressure campaign against the government of Tsai’s Democratic Progressive party in advance of general elections next January.

On Sunday, Honduras switched diplomatic recognition from Taipei to Beijing. A day later, China welcomed Tsai’s predecessor Ma Ying-jeou, from the opposition Kuomintang, the first-ever sitting or former Taiwanese president to visit the country.

At the memorial hall of Sun Yat-sen, founder of the Republic of China, which the Kuomintang relocated to Taiwan after its defeat in the Chinese civil war, Ma said all people on both sides of the Taiwan Strait were Chinese — a position the majority of Taiwanese do not share, according to long-running polls.

Invoking words attributed to Sun, Ma said it was the responsibility of Chinese people on both sides to “work together to pursue peace, avoid war and strive to revitalise China”.

FT : Credit Suisse bankers and clients courted by Swiss rivals

Credit Suisse bankers and clients courted by Swiss rivals
Staff retention is ‘number one’ priority at UBS after takeover as wealth managers aim to capitalise on turmoil

Switzerland’s private banks are seeking to poach key staff and clients from Credit Suisse as steep job and bonus cuts force bankers into the market following the takeover by UBS.

Julius Baer, Pictet, Lombard Odier, EFG and LGT are among Swiss wealth managers sounding out disgruntled Credit Suisse bankers, people familiar with ongoing conversations have told the Financial Times, offering job stability and attractive sign-on packages to make up for bonuses blocked or wiped out by the government-backed UBS takeover.

Credit Suisse employees saw hundreds of millions of francs worth of deferred bonuses erased by the emergency takeover last week, while the Swiss government has ordered a freeze on future bonus payments. Many are also anticipating swingeing job cuts, as UBS seeks to integrate its biggest rival into its own successful franchise.

“The best people don’t wait,” said one senior executive at a top-five Swiss bank which is negotiating with individuals at Credit Suisse. “This is a highly competitive environment. All UBS has to offer is five years of insecurity.”

A board member at another rival said he knew of an entire Credit Suisse team, of 10-15 people, that was looking for an exit. “They will move in a block. [It’s] in a location where UBS already has a team. The head of location knows he’s not going to be number one, so he has decided he wants to look for other options and his team will follow him . . . Things are going very fast.”

Credit Suisse’s operations in Asia are a particular area of focus, several rival bankers said: the region has been the major driver of profit-growth in Swiss private banking over the past decade, but the spoils have been unequally shared. Many midsize Swiss banks have, until now, been outcompeted by the two big banks.

The share price at Julius Baer, which has a sizeable Asian footprint, rose 13 per cent last week.

While most analysts have been positive on what the takeover of Credit Suisse will mean for UBS, the loss of key employees will have a significant impact on what the banks’ combined wealth management franchise eventually looks like, some have warned.

“In the end this is a relationship business,” said Andreas Venditti, analyst at Vontobel, another large Swiss private bank. He expects senior bankers to take major clients with them when they depart. In some respects, he says, they will be pushing at an open door.

“You have a lot of ultra high net worth individuals [UHNWI] who were clients of both UBS and Credit Suisse, because they value diversification,” he said. “UBS has tried to play down the overlap of clients but I would be very surprised, frankly, if it was that low.”

He also pointed to an existing trend of outflows: rich clients took SFr95.7bn out of Credit Suisse accounts, net, last year.

The head of one Geneva-based private bank said they had seen “significant” inflows from their rival and expected more. “Of course, if you were an UHNWI who had assets shared between CS and UBS, you’re now looking to share your assets elsewhere with the two becoming one.”

He, too, said he was negotiating with Credit Suisse staff: “We are spending a lot of time on the phone.”

“Clients are worried — everyone is worried — about where this is going,” said Nicole Curti, chief executive of Capital Y, an adviser to high net worth individuals and families, and president of the Alliance of Swiss Wealth Managers.

“The advice we have been giving to clients is to diversify — to the private banks like Pictet, Lombard Odier and of course Julius Baer, but also to the Swiss cantonal banks, which have good online payment systems for custody of cash.”

Curti said she also expected a lot of Credit Suisse bankers to join smaller wealth-advisory boutiques, or set up their own, as well as flock to established private banks.

An adviser to UBS said retention was now the “number one” issue for management as it grapples with digesting its rival.

The combined bank will have a balance sheet of close to SFr5trn, with SFr3.3trn of assets managed for the very rich.

“Credit Suisse private bankers are being called left, right and centre,” he said. “The real worry at UBS is about retention over the next six weeks before the deal’s done . . . some of the domestic Swiss banks are going to Credit Suisse private bankers and offering an increase in compensation but also committing to pay bonuses that at least include their deferred compensation, so they will be making them whole on what they are losing at CS.”

FT : Rules on listing Coco bond ETFs changed after first approvals

Rules on listing Coco bond ETFs changed after first approvals
The two existing funds have suffered steep losses since Credit Suisse’s AT1 bonds were written down to zero

Regulators appear to have got cold feet after approving two funds investing in the niche bank debt central to losses in the wake of UBS’s takeover of Credit Suisse, but allowed the existing funds to continue.

Two exchange traded funds, the €1.1bn Invesco AT1 Capital Bond Ucits ETF (AT1) and the $265mn WisdomTree AT1 CoCo Bond Ucits ETF (CCBO) invest 100 per cent of their assets in “additional tier 1” bonds issued by banks.

These “contingent convertible” bonds were introduced after the global financial crisis and designed to limit the need for taxpayers’ money to be used to bail out failed banks. They provide an additional layer of loss-absorbing capital that is junior to traditional debt instruments in a bank’s capital structure but, it was widely thought, senior to its equity.

However, Credit Suisse’s $17bn of AT1 bonds were written down to zero as part of its takeover by Swiss peer UBS, even as equity holders shared SFr3.25bn ($3.53bn) between them, prompting an outcry from investors and concerns over the wider $260bn AT1 market.

Prices had already been marked down earlier this month after AT1 bonds issued by Silicon Valley Bank UK were written off, although in that case equity holders were also wiped out.

Despite recovering from their lows, after the likes of the European Central Bank and Bank of England reiterated their view of AT1 bonds’ place above equity in banks’ capital structure, the Invesco ETF has fallen 19.4 per cent since March 9, while the WisdomTree fund is down 15.5 per cent over the same period.

As of the market close on March 17, the last trading day before Credit Suisse’s demise, the ETFs had exposure of 3.5 per cent and 2.8 per cent respectively to the bank’s AT1 bonds, according to Morningstar data.

Both ETFs are domiciled in Ireland and launched in 2018. However, in 2020 the Central Bank of Ireland, the financial regulator, issued new guidance for Ucits funds, Europe’s mainstream funds structure.

This said that Ucits funds proposing to invest in contingent convertible bonds “may be subject to enhanced scrutiny at the authorisation phase with a view to ensuring that the proposal is appropriate”.

Cocos were lumped in with contracts for difference, collateralised loan obligations and binary options as assets requiring a similar level of surveillance.

The regulator said in a statement that, in respect of Cocos “the central bank’s authorisation approach has evolved whereby any fund proposing to invest a material proportion in such assets will be subjected to enhanced review.

“Any proposal for a Ucits to invest a proportion of assets in such assets is required to make a comprehensive submission at authorisation stage which addresses issues around the fund’s liquidity profile and ability of the fund’s management company to effectively manage the proposed level of investment.”

In particular, this enhanced review would consider how holdings of Cocos “will be managed in terms of overall liquidity of the fund, particularly given the potential for strong volatility in the liquidity profile” and the disclosures that would be given “in order for retail investors to understand the inherent risks in these assets”.

European retail investors typically do not hold Coco bonds, and are barred from doing so in some jurisdictions, such as the UK, although it may be possible for UK investors to access the ETFs.

Ireland’s change of tack came after the European Securities and Markets Authority said in 2019 that, in its view, “Coco bond funds are generally not compatible with the retail market,” with these “investor protection concerns” extending to “funds which predominantly invest in Coco bonds”.

“Manufacturers and distributors should therefore consider excluding retail investors from the target market,” Esma added.

The pre-existing Invesco and WisdomTree ETFs were, however, permitted to continue operating.

“These funds are grandfathered,” said one industry figure, referring to the legal exemption that can be granted for entities to continue existing operations after the imposition of new rules. The person believed the CBI’s revised guidance was a de facto ban on the creation of any new ETFs investing more than a small slice of their assets in additional tier 1 bonds.

“The CBI changed the rules. They haven’t allowed any more AT1 ETFs, they will only allow people to put 10 per cent of a Ucits fund in AT1s,” he said.

The figure believed the CBI had been wrong to change tack, arguing there are many other fixed income ETFs that hold “some pretty illiquid securities”, while theoretically riskier equities, even those in emerging markets, where volatility is typically elevated, are freely available to retail investors.

Peter Sleep, senior portfolio manager at 7 Investment Management, agreed, arguing there are many securities “wrapped up in exchange trade funds or notes that are not approved for retail investors such as commodities, cryptocurrencies and Vix-based ETNs, all of which are available in levered long and short versions” and all of which have proved volatile.

Kenneth Lamont, senior fund analyst for passive strategies at Morningstar, went further, saying: “I think it’s great that these [Coco] products exist, allowing sophisticated investors to make targeted bets very cheaply and efficiently.”

Coco bonds are “a market that would once have been accessible only to the largest and most sophisticated investors globally. Now it’s also available to smaller institutions and other intermediaries who know what they are doing,” Lamont added.

He argued that “much more dodgy” ETFs are widely available, such as leveraged and cryptocurrency funds.

Lamont’s view was that ETFs such as the Invesco and WisdomTree products should be available, but that access to them should be policed by brokerages and other intermediaries, which should ensure that their products are suitable for their investor base, and that risk warnings are in place if these funds are available.

>>> After Hours Summary: LULU +12.2%, CALM +3.7% higher on earnings; MU -1.1%, P

After Hours Summary: LULU +12.2%, CALM +3.7% higher on earnings; MU -1.1%, PRGS -2.8% lower on earnings; BPMC +3.5% higher as FDA lifts partial clinical hold

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: ARCT +21.9% (also says cash runway now extends into the beginning of 2026; provides pipeline update), LULU +12.2%, CALM +3.7%, NCNO +2.9%

Companies trading higher in after hours in reaction to news: NABL +9.3% (to join S&P SmallCap 600), BPMC +3.5% (FDA lifts partial clinical hold on Phase 1/2 VELA trial of BLU-222), BKSY +2.6% (commissions two new satellites), CLPT +2.1% (licensing agreement with UC San Francisco), OPRT +1% (CFPB competes investigation of OPRT, not recommending enforcement action)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SLGC -15%, PLAY -4% (also authorizes new $100 mln share repurchase program), PRGS -2.8%, MU -1.1% (also says it now expects headcount reduction to approach 15%), JEF -0.7%

Companies trading lower in after hours in reaction to news: ERO -4.7% (announces 18% increase in mineral reserves), SWX -0.6% (Icahn Capital increases stake to 14.75%), WGO -0.6% (Chris-Craft unit increases production capacity by 50% with new facility), RIG -0.3% (announces contract awards totaling $382 mln), LAND -0.3% (files $1.5 bln mixed shelf securities offering), SFBS -0.1% (expands into Texas), LCID -0.1% (announces restructuring plan, includes 18% workforce reduction), FLT -0.1% (names new CFO)