>>> What to look at today -30th of March 2023

Asian stocks drifted lower, US futures fluctuated and contracts for Europe rose marginally in listless trading Thursday. The dollar and Treasuries were confined to range-bound trading.  A key indexes around Asia held to moves of less than 1%, underscoring the subdued trade. Declines in Japanese and Chinese stocks were partly attributed to quarter-end rebalancing. Australian and South Korean markets eked out increases.  An initial advance in Hong Kong-listed tech companies fizzled as a rally in Alibaba Group Holding Ltd. evaporated. Chief executive Daniel Zhang said the company would consider gradually giving up control of some of its main businesses. His short briefing Thursday came after an overhaul announced earlier in the week that sparked a 12% rally in the stock on Wednesday. Contracts for the region-wide Euro Stoxx 50 benchmark climbed around 0.2% while those for the S&P 500 and Nasdaq 100 swung between small gains and losses.  The muted action contrasted with gains overnight on Wall Street that pushed the Nasdaq 100 into a bull market amid bets that a peak in interest rates is near and bank turmoil will continue to ease. The index rose 1.9%, which cemented its 20% rebound from a low in December.  The tech-heavy index, which includes Apple Inc., Microsoft Corp., and Amazon.com, closed at the highest level since August in a sign investors are preparing for the Federal Reserve to end its interest rate hiking cycle and potentially pivot to looser policy later this year. The dollar pared an earlier advance in Asia on Thursday after strengthening as investors digested the latest remarks by Fed officials and looked ahead to core PCE data for clues on how the Fed’s next move. Investors now expect US rates to sit around 4.3% by the end of the year, around 70 basis points lower than the current level. oil held its drop as lagging US diesel demand overshadowed a disruption to shipments from Turkey. Gold fell for a second day and  Bitcoin  hovered above $28,000.  US After Hours STIX +12% up on repurchase authorization; CXM +7.5% trading higher on earnings; PACW +3% after joining S&P SmallCap 600; SMTC -8.8%, CNXC -5.6% (also combining with Webhelp), and RH -4.9% down on earnings.

Nikkei -0,74% Hang Seng +0,16% CSI +0,28% Shanghai +0,20% Shenzen +0,05%

Eur$ 1,0841 CNH 6,8885 CNY 6,8868 JPY 132,48 GBP 1,2319 CHF 0,9181 RUB 77,2875 TRY 19,1497 WTI$ 72,95 Gold 1,964 BTC 28,626 +0,75% ETH 1,797

S&P +0,11% Nasdaq +0,02% EuroStoxx +0,6% FTSE +0,41% Dax +0,63% SMI

Macro :
- Citi Quants See Complacency as Markets Ignore Recession Risks
- BofA’s Subramanian Calls Cash ‘Compelling Alternative’ to Stocks
- OPEC+ Set to Stay the Course at Next Gathering Amid Uncertainty
- German Public-Sector Wage Talks Fail and Will Go to Arbitration
- Citadel Hedge Fund Plans to Reopen Tokyo Office This Year: FT

Keep an eye on :
- 1U1 GY : 1&1 Sees 2023 Ebitda About EU655M, Est. EU687.9M
- BABA US : Alibaba Weighs Ceding Control of Some Businesses Over Time (1)
- ANTIN FP : Antin, Scandinavian Enviro Systems Create Tire Recycling JV
- BYW6 GY : BayWa 2023 Ebit Forecast Misses Estimates
- BIM FP : BioMerieux Holder Sitam Belgique Offers 946,890 Shares: Terms
- CO FP : Casino Raises Stake in Smart Good Things To 14.7%
- CWC GY : Cewe Stiftung Sees 2023 Revenue EU720M to EU780M, Est. EU755.6M
- CSGN SW : Credit Suisse Board Withdraws Some Proposals Ahead of AGM
- EDP PL : Europe Isn’t Investing Enough in Renewable Energy, EDP CEO Says
- ERICB SS : Ericsson CEO, Directors Lose Liability Vote Over Iraq Scandal
- FAST NA : Fastned FY Revenue Related to Charging EU36.0M Vs. EU12.4M Y/y
- GALE SW : Galenica to Hold 8% of Shop Apotheke Europe as Companies Form JV
- GALE SW : Galenica Boosts FY Adjusted Ebit Forecast
- GBLB BB : *CONCENTRIX TO ACQUIRE WEBHELP IN DEAL VALUED AT ABOUT $4.8B
- HMB SS : H&M 1Q Gross Profit Beats Estimates
- IVG IM : Iveco to Transfer Nordic Retail Business to Hedin Mobility Group
- JDEP NA : JDE Peet’s Holder Mondelez Offers Shares: Terms
- BNB BB : National Bank of Belgium FY Loss €580M VS. Profit €355M Y/y
- NDA SS : Nordea’s New Chair Sees No Need for New Principal Owner: DI
- PST IM : Poste Italiane Boosts 2023 Ebit Forecast, Meets Estimates
- PRX NA : Prosus Reports Bekker’s Trust Sold 2.5m Shares for About EUR173m
- PUUILO FH : Puuilo 4Q EPS EU0.080
- SFOR LN : S4 Capital FY Adjusted Pretax Profit Meets Estimates
- SFQ GY : SAF-Holland SE Sees 2023 Adjusted Ebit Margin 7.5% to 8.5%
- SHEL LN : Volta Shareholders Approve $169 Million Takeover by Shell
- SAE GY : Galenica to Hold 8% of Shop Apotheke Europe as Companies Form JV
- S92 GY : SMA Solar FY Ebitda EU70M Vs. EU8.5M Y/y
- S92 GY : SMA Solar Could See 2023 Sales Rebound on Strong Backlog: React
- SSABA SS : SSAB Now Among Preferred Steel Stocks at MS, Salzgitter Cut
- TIT IM : Telecom Italia Top Investor Wants Shareholder Vote on Grid Deal
- TRMDA DC : Torm Holder Ocm Njord Holdings Sarl Offers 5m Shares
- UTDI GY : United Internet Sees 2023 Sales About EU6.2B, Est. EU6.1B
- VWS DC : Vestas Wins Biggest Onshore Order With 1.3GW Contract (1)
- VOD LN : Vodafone Seeks to Cut About 1,300 Jobs in Germany: Handelsblatt

>>> US After Hours Summary: STIX +12% up on repurchase authorization; CXM +7.5%

After Hours Summary: STIX +12% up on repurchase authorization; CXM +7.5% trading higher on earnings; PACW +3% after joining S&P SmallCap 600; SMTC -8.8%, CNXC -5.6% (also combining with Webhelp), and RH -4.9% down on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CXM +7.5%, PL +1.4% (also acquiring the business of Holding Sinergise)

Companies trading higher in after hours in reaction to news: STIX +12% (authorizes $5 mln additional repurchases), AKRO +3.2% (positive end-of-phase 2 meeting with FDA), PACW +3% (joining S&P SmallCap 600), CR +2.3% (joining S&P MidCap 400), FC +1.6% (approves $50 mln for repurchases), WW +0.8% (Millennium Management discloses 5.1% stake), PHR +0.1% (partners with Unlimited Systems Partners), WFC +0.1% (FDIC considering pressuring big banks to fill $23 bln hole, according to Investing.com)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SMTC -8.8%, CNXC -5.6% (also combining with Webhelp), RH -4.9%, VRNT -3.1%, FUL -1.3%

Companies trading lower in after hours in reaction to news: PRQR -7.5% (stock offering by selling shareholders), AVDL -4.4% (enters royalty agreement with RTW Investments; commences public offering), VKTX -3.6% (stock offering), BTU -3.2% (confirms fire at Shoal Creek Mine), GPRE -1.5% (Chairman retiring), EVH -0.2% (expands partnership with Centene), MRK -0.1% (FDA converts to full approval indication for KEYTRUDA), JPM -0.1% (FDIC considering pressuring big banks to fill $23 bln hole, according to Investing.com), TSLA -0.1% (SES SA talking with Intelsat about combination)

>>> US close


Closing Stock Market Summary

Today's trade had a decidedly positive tone following the two-day Congressional hearing on the SIVB bank failure. For most of the session, the main indices chopped around a fairly narrow range, albeit sporting nice gains. Ultimately, though, a late afternoon push higher had the main indices close near their highs of the day, leaving the S&P 500 above its 50-day moving average (4,014).

The tech-heavy Nasdaq paced its peers thanks to strong leadership from mega caps and chipmakers. Investors reacted favorably to Micron's (MU 63.54, +4.26, +7.2%) quarterly results and many semiconductor stocks traded up in sympathy. The PHLX Semiconductor Index rose 3.3% today. 

Strength from semiconductor components helped drive a 2.1% gain in the S&P 500 information technology sector, which closed near the top of the leaderboard along with real estate (+2.3%) and consumer discretionary (+1.9%). 

All 11 sectors closed with gains, but the defensive-oriented consumer staples (+0.5%) and health care (+0.2%) sectors lagged the broader market with the slimmest gains of the day. 

Market breadth reflects a strong positive bias behind today's gains. Advancers led decliners by a nearly 4-to-1 margin at the NYSE and a 2-to-1 margin at the Nasdaq.

Notably, the positive price action today followed relatively strong gains in many overseas indices. Germany's DAX rose 1.2%, the U.K.'s FTSE rose 1.1%, and France's CAC 40 rose 1.4%. Market participants were reacting to the news that UBS AG (UBS 20.10, +0.83, +4.3%) named Sergio P. Ermotti as CEO, effective April 5.

Treasuries settled little changed from yesterday's closing levels. The 2-yr note yield rose one basis point to 4.07% and the 10-yr note yield was unchanged at 3.57%.

  • Nasdaq Composite: +14.0% YTD
  • S&P 500: +4.9% YTD
  • S&P Midcap 400: +1.3% YTD
  • Russell 2000: +0.6% YTD
  • Dow Jones Industrial Average: -1.3% YTD

Reviewing today's economic data:

  • The weekly MBA Mortgage Applications Index rose 2.9% with purchase application jumping 2.0% (-35% yr/yr) while refinancing applications rose 5.0% (-61% yr/yr).
  • Pending home sales rose 0.8% in February (consensus -2.3%) following a 8.1% increase in January.
  • The weekly EIA Crude Oil Inventories showed a draw of 7.49 million barrels following last week's draw of 1.06 million barrels.

Looking ahead to Thursday, market participants will receive the following economic data:

  • 8:30 ET: Weekly Initial Claims (consensus 196,000; prior 191,000), Continuing Claims (prior 1.694 mln), Q4 GDP -- third estimate (consensus 2.7%; prior 2.7%), and GDP Deflator -- third estimate (consensus 3.9%; prior 3.9%)
  • 10:30 ET: Weekly natural gas inventories (prior -72 bcf)

FT : UK re-entry into EU Horizon programme threatened by cash dispute

UK re-entry into EU Horizon programme threatened by cash dispute
Britain seeks to reduce contributions to €95bn research network seen as vital by country’s scientists

The UK’s bid to rejoin the EU’s Horizon research programme, expected to be one of the early “wins” of the recent Northern Ireland trade deal, is threatened by a dispute over money.

UK scientists say membership of the €95.5bn programme is vital for research and investment in science but Britain has been blocked from the scheme since 2021 because of a row over post-Brexit trade in Northern Ireland.

With London and Brussels hailing a new chapter in relations after the Windsor framework on Northern Ireland trade arrangements was finalised last week, readmission to Horizon seemed likely.

But the UK argues that its annual contribution to the seven-year programme should be reduced because its late entry has diminished the value of programme’s returns.

“The EU’s delays over the last two years have had a damaging and lasting impact on UK R&D,” said a UK government spokesperson. “Discussions on a way forward will need to reflect the financial reality that we have missed over two years of the seven-year programme.”

As members of Horizon until 2020, British institutions received research grants worth roughly the same as their government’s contribution. Once blocked from the programme, UK researchers could participate in, but not lead, Horizon-funded projects, with their work funded directly by London.

However, the UK contribution to EU programmes such as Horizon is set under the terms of the Brexit Trade and Cooperation Agreement.

Under the terms of the TCA, the UK must contribute an amount proportionate to the size of its economy, which is around 18 per cent of that of the EU, according to statistics agency Eurostat.

Britain had been expected to contribute £15bn for the full seven-year programme. The Financial Times calculates that according to the TCA, the pro rata fee for the remaining years of the programme, which ends in 2027, could add up to as much as €11bn — equivalent to £9.7bn — depending on when the UK rejoins Horizon.

Neither the UK nor the European Commission would confirm the figure. But reducing London’s contribution would involve reopening the TCA, something Brussels refuses to countenance.

British ministers argue that Brussels should cut Britain a fair financial deal.

Allies of Rishi Sunak, the prime minister, have confirmed he is considering taking Britain back into Horizon but say he is “sceptical” about the programme and has asked science minister George Freeman to look into a Plan B, based on global collaboration.

But academics are demanding to rejoin the programme. This month 18 research bodies issued a joint demand for London and Brussels to get Britain’s readmission “swiftly over the line, finally ending the damaging impasse”.

Vivienne Stern, chief executive of Universities UK, which represents the sector, said she was “delighted” talks were beginning and that she understood the EU had accepted “reasonable adjustments” to the cost to UK should be made.

More than 40 countries are associated with Horizon, and EU diplomats say they have to be fair to other late joiners such as New Zealand. “To change the payment amount you would have to reopen the TCA. That is a no go,” said one.

Similar financial arguments will dog negotiations for the UK to join other EU programmes such as Copernicus, an earth-monitoring satellite system, and Euratom, the nuclear energy body.

The commission said: “At the EU-UK Partnership Council on March 24, the European Commission and the UK government reaffirmed their desire to exploit fully the potential of the TCA, and maximise the potential of the relationship between the EU and the UK in ways that benefit both parties.”

Talks are expected to begin after Easter and aim to secure an agreement by June.

FT : Walt Disney ousts Marvel chair Isaac Perlmutter after he clashed with CEO B

Walt Disney ousts Marvel chair Isaac Perlmutter after he clashed with CEO Bob Iger
Move is part of efforts to eliminate 7,000 roles, say people briefed on the matter

Isaac “Ike” Perlmutter, the billionaire who sold Marvel to Disney in 2009 and had clashed with the company’s chief executive Bob Iger, has been ousted as the entertainment group embarks on thousands of job cuts.

Perlmutter’s $4bn sale of Marvel was transformative for Disney, which has turned it into one of the most enviable franchises in entertainment history with blockbusters including The Avengers and Iron Man. But he was also considered difficult to work with, leading to disputes with Iger and other Disney executives, said current and former executives.

Over the past year he also used his significant shareholding to back an effort by activist investor Nelson Peltz to gain a seat on Disney’s board, putting him in contention with Iger, who resisted the push.

Peltz backed down in February after Iger announced plans to cut costs and eventually reinstate the dividend, which had been suspended during the Covid-19 outbreak.

Iger has had a tense relationship with Perlmutter. In 2015, Iger reorganised Marvel to allow film producer Kevin Feige to report to the head of the Disney studio rather than the Marvel chair — a move that is said to have outraged Perlmutter.

That reorganisation also left Perlmutter with a smaller role as chair of Marvel Entertainment, a unit with a few hundred employees overseeing comic book publishing and consumer products.

The comics division will now be overseen by Disney Entertainment group, while consumer products will be folded into another unit as part of a restructuring. Other Marvel executives are also losing their jobs.

In February, Iger told CNBC that Perlmutter had been “intent on firing” Feige at the time. After Iger stepped in to block the move, Perlmutter “was not happy about it”, Iger said, adding: “I think that unhappiness exists today.”

As Marvel president, Feige has overseen the release of some of the highest-grossing movies of all time, including Avengers: Endgame and Black Panther.

This week, Iger started the process of cutting about 7,000 jobs at the company in an effort to save about $5.5bn. Since his return as Disney chief executive, he has stressed the need to reach profitability at its streaming operations by next year. He has said he plans to slash $3bn from content budgets and $2.5bn in other costs.

In a 2019 book on his tenure at Disney, Iger described Perlmutter as “a legendarily tough, reclusive character” and as having a reputation for being “penurious to the extreme”. But while he acknowledged having “disagreements” with Perlmutter, he “respected where he’d come from in his life”.

Perlmutter, who made a fortune as an investor in distressed assets, began working with Marvel in the mid-1990s, when he controlled Toy Biz, a company that owned the exclusive licence to produce toys based on Marvel’s characters.

After the group went into bankruptcy, Perlmutter fended off Carl Icahn and other investors to gain control of Marvel.

WSJ : Credit Suisse Violated Plea Deal in Tax Case, Senate Report Says

Credit Suisse Violated Plea Deal in Tax Case, Senate Report Says
The Swiss bank failed to disclose transfers linked to a continuing tax conspiracy, according to a Senate investigation

WASHINGTON— Credit Suisse Group AG CS +3.48% violated the terms of a 2014 criminal plea agreement in which it promised to stop helping Americans hide assets from the U.S. tax authorities, according to a Senate report released Wednesday.

The Senate Finance Committee’s Democratic staff said Credit Suisse failed to report bank transfers tied to what it says may be an ongoing criminal tax conspiracy involving more than $100 million held by a family with dual citizenship in the U.S. and Latin America.

The bank also, partly in response to the committee inquiry, recently identified more accounts that may be tied to Americans.

“It is deeply concerning that almost nine years after executives testified before Congress that the bank would clean up its act, Credit Suisse is still disclosing hundreds of millions of dollars in secret offshore accounts belonging to wealthy U.S. taxpayers,” the report said.

The findings are another setback for Credit Suisse, which is being bought by rival UBS Group AG UBS +4.26% in a deal urged and supported by Swiss regulators. UBS agreed to take on Credit Suisse’s substantial legal liabilities in the takeover.

In its 2014 plea agreement with the Justice Department, Credit Suisse admitted that it had helped Americans evade taxes for years. It agreed to pay $2.6 billion and said it would comply with U.S. law.

Justice Department officials found deficiencies in the bank’s handling of its 2014 plea agreement, The Wall Street Journal reported last November, citing people familiar with the case. The bank said at the time it had devoted substantial resources to improve its compliance.

An Internal Revenue Service spokesperson declined to comment. A spokesperson for the Justice Department didn’t immediately respond to a request for comment.

“Credit Suisse does not tolerate tax evasion,” said a Credit Suisse spokesperson. “The report describes legacy issues, some from a decade ago, and we have implemented extensive enhancements since then to root out individuals who seek to conceal assets from tax authorities,” the spokesperson said. The bank is cooperating with the Justice Department to address “remaining legacy conduct or policy concerns,” the spokesperson said.

UBS is expected to close its takeover of Credit Suisse next month.

A UBS spokesperson said as part of the acquisition the bank “made an assessment of outstanding litigation and investigation matters. We expect the transaction will be accretive to our shareholders in a wide range of business scenarios.”

The Senate report suggests that there are gaps in the U.S. system for finding Americans’ foreign account holdings and calls on the IRS and the Justice Department to investigate further. And it says that the Swiss government or any entity buying Credit Suisse should be responsible for fines stemming from violations of the 2014 plea deal.

For many years, banks in Switzerland and elsewhere enabled tax evasion by wealthy Americans, who could park assets in accounts that weren’t reported to the IRS.

That started changing in the 2000s, and the U.S. used whistleblowers, criminal prosecutions and voluntary-disclosure programs to stem tax evasion by wealthy Americans.

The U.S. Congress in 2010 also passed a law that effectively required foreign banks to report Americans’ accounts to the U.S. government. That law has made banking abroad difficult for U.S. citizens living outside the country, but it has limited any opportunities for Americans to hold secret foreign bank accounts.

The committee started its investigation in April 2021, prompted by the prosecution and guilty plea of businessman Dan Horsky for tax fraud. According to the report, Mr. Horsky controlled $220 million in accounts at the bank but the U.S. government learned of them from a whistleblower, not from Credit Suisse.

Most of that activity occurred before the plea deal but the committee report notes that Mr. Horsky was still being invited to bank events for top customers in 2015.

Mr. Horsky’s case prompted the Senate committee’s investigation into other Credit Suisse clients, including the family with dual citizenship. The report doesn’t identify the family and cites Credit Suisse as saying that the matter involves ongoing cooperation with U.S. law enforcement.

According to the report, Credit Suisse registered the accounts in its system using the non-U.S. documentation in its records, though the bank also had information showing U.S. passports and residences.

Using information provided by Credit Suisse and informants, the committee determined that the family closed eight Credit Suisse accounts in 2012 and 2013, moving the money to banks in Switzerland, Israel and Andorra.

Under its plea agreement, Credit Suisse was supposed to disclose those transfers but didn’t do so for most of them until December 2021, after the Senate investigation started, according to the report.

Jeffrey Neiman, an attorney for the whistleblowers, who could receive a monetary award for their involvement, said the Justice Department should collect $1.3 billion because of Credit Suisse’s failure to abide by the plea agreement, regardless of the bank’s current financial troubles and takeover.

WSJ : Adidas Ends Its Opposition to Black Lives Matter Logo

Adidas Ends Its Opposition to Black Lives Matter Logo
Sportswear maker had called the advocacy group’s three-stripe emblem too similar to its own

Adidas AG ADDYY 3.71% said it would drop its opposition to Black Lives Matter’s bid to trademark its logo design, which, like the sportswear company’s emblem, features three stripes.

The German brand has in the past fiercely defended its logo design, which comprises three diagonal stripes, albeit with mixed success. The Black Lives Matter Global Network Foundation’s logo, which the advocacy group is seeking to trademark, consists of three parallel yellow lines on a transparent background.

Adidas had submitted its opposition to the BLM logo to the U.S. Patent and Trademark Office in a filing dated Monday. In the filing, the company said it had been using its three-stripe logo for more than 70 years and that the BLM logo was “confusingly similar.”

Trademarking the BLM foundation’s logo would dilute the distinctiveness of the three-stripe mark, Adidas said. “Registration would be a source of damage and injury,” it added.

On Wednesday, Adidas said it was dropping its attempt to block BLM’s application “as soon as possible.” Adidas decided to drop its objection because the company didn’t want to be misinterpreted as objecting to BLM’s cause, which it supports, according to a person familiar with the matter.

The BLM foundation didn’t immediately respond to a request for comment. BLM was founded in 2013 and gained greater prominence in 2020 following the murder of George Floyd, a Black man, while in police custody. The organization submitted its application to trademark its logo in 2020.

The decision by Adidas to back away from a potential trademark dispute comes as the company embarks on a turnaround plan under new Chief Executive Bjørn Gulden, and seeks to move on from criticism related to race issues.

Adidas last year terminated its once-lucrative Yeezy partnership with rapper Kanye West, who goes by Ye, in response to the Mr. West’s antisemitic remarks.

Earlier this month, Mr. Gulden said the company would proceed with extreme care in deciding what to do with its huge inventory of unsold Yeezy products in light of the offense Mr. West had caused. One option under consideration could see Adidas sell the Yeezy stock and then donate the proceeds to charity, Mr. Gulden said.

Adidas in 2020 faced employee complaints about the company’s culture and lack of diversity. The criticism prompted Karen Parkin, the sneaker maker’s human resources chief and a member of its executive board, to retire. The departure came after she told an employee meeting that racism was “noise” that was only discussed in America, and that she didn’t believe the brand had an issue with racism.

At the time Ms. Parkin apologized and said she had chosen her words poorly, while affirming that both she and Adidas stood firmly against racial discrimination.

Adidas’s move Wednesday to drop its opposition to BLM’s trademark application follows the company’s failure earlier this year to prevent U.S. fashion designer Thom Browne from using a four-stripe motif, which appears on his jackets and other menswear. He had earlier switched from a three-stripe design in response to objections from Adidas.

The judge in that case ruled that the use of stripes wouldn’t necessarily confuse or mislead consumers and declined to award damages as requested by the German company. Legal commentators said Mr. Brown’s victory could make it more difficult for Adidas to block other logos or designs featuring stripes in future.