>>> TradeGate Pre-Market Indications

DAX:
  • Beiersdorf (BEI TH) +1.3%
    • Beiersdorf Raised on Better Risk-Reward, Henkel Underweight: MS
  • Puma (PUM TH) +0.8%
  • SAP (SAP TH) -0.9%
    • Morgan Stanley Positioning Defensively on EU Tech Stocks in 2023
  • Infineon (IFX TH) -1%
  • Deutsche Boerse (DB1 TH) -1.5%
    • Deutsche Boerse Downgraded at JPM With LSE, Euronext Preferred
MDAX:
  • LEG Immobilien (LEG TH) -1.3%
  • Aroundtown (AT1 TH) -1.3%
  • Carl Zeiss Meditec (AFX TH) -1.6%
  • ProSieben (PSM TH) -1.8%
    • ProSieben Cut to Neutral at JPMorgan; PT 11 euros
  • TeamViewer (TMV TH) -2%
    • Morgan Stanley Positioning Defensively on EU Tech Stocks in 2023
SDAX:
  • MorphoSys (MOR TH) +2.5%
    • MorphoSys Presents New Longer-term Phase 2 Results on Pelabresib in Myelofibrosis, Including Potential Disease-Modifyi
  • DIC Asset (DIC TH) +2%
  • Uniper (UN01 TH) +1.5%
  • PNE AG (PNE3 TH) +1.5%
  • Shop Apotheke (SAE TH) +1.4%
  • Kloeckner (KCO TH) -1.5%
  • Jenoptik (JEN TH) -1.5%
  • Hamborner REIT (HABA TH) -1.7%
  • Heidelberger Druck (HDD TH) -1.8%
  • SGL (SGL TH) -1.8%

>>> Europe : Brokers Upgrades & Downgrades - 12th of December 2022

>>> Up
* Adevinta Raised to Neutral at Citi; PT 73 kroner
* Air France-KLM Raised to Hold at Stifel; PT 1.20 euros
* Alcon Raised to Buy at Citi; PT 78.67 Swiss francs
* Beiersdorf Raised to Sector Perform at RBC; PT 98 euros
* Gap Raised to Buy at Goldman; PT $18
* IAG Raised to Hold at Stifel; PT 129.04 pence
* S Immo Raised to Accumulate at Erste Group; PT 14.50 euros
* Under Armour Raised to Buy at Stifel; PT $12
* Wood Raised to Buy at Jefferies; PT 190 pence

>>> Down
* Capgemini Cut to Equal-Weight at Morgan Stanley; PT 221 euros
* Celon Pharma Cut to Hold at Erste Group; PT 17.50 zloty
* Dalata Cut to Hold at Jefferies
* Deutsche Boerse Cut to Neutral at JPMorgan; PT 186 euros
* IDS Cut to Hold at HSBC; PT 215 pence
* L'Oreal Cut to Underperform at RBC; PT 290 euros
* Melia Hotels Cut to Hold at Jefferies
* MFE Cut to Underweight at JPMorgan; PT 58 euro cents
* Micron Cut to Hold at Deutsche Bank; PT $55
* PPHE Hotel Cut to Hold at Jefferies
* ProSieben Cut to Neutral at JPMorgan; PT 11 euros
* TeamViewer Cut to Underweight at Morgan Stanley; PT 12 euros
* Valoe Cut to Sell at Inderes; PT 2 euro cents

>>> Initiation
* Ageas Reinstated Sell at Goldman; PT 39.50 euros
* Bankinter Rated New Outperform at Autonomous; PT 7.60 euros
* Coinbase Rated New Sector Weight at KeyBanc
* Haypp Group Rated New Overweight at Barclays; PT 60 kronor
* NN Reinstated Buy at Goldman; PT 53.50 euros

>>> Call
* Accor, Dalata, Melia Cut at Jefferies on Cautious Hotel Outlook
* Ageas New Sell at Goldman on China Exposure, NN Group Rated Buy
* Bank of America expects a recession next year, Moynihan says
* Sanofi Likely to Rise After Walking Away From Horizon: Barclays
* Wood Upgraded to Buy at Jefferies on Stronger Cash-Flow Outlook
* Morgan Stanley Positioning Defensively on EU Tech Stocks in 2023
* Morgan Stanley’s Wilson Says Stocks Don’t Reflect Earnings Risk

>>> What to look at today - 12th of December 2022

The dollar advanced and stocks extended declines in Asia at the start of a pivotal week for markets, with interest rate decisions due from the Federal Reserve, the European Central Bank and a host of their peers. The greenback rose versus all of its Group-of-10 counterparts while and index of Asian equities fell, ending a two-day winning streak. The rapid spread of Covid cases in China added to concern, with Hong Kong’s the Hang Seng Index down about 2%. US stock futures fell in Asia following a late-day slide on Wall Street on Friday, with the S&P 500 closing near the day’s lows. The Dow Jones Industrial Average notched its worst weekly drop since September.  The Treasury 10-year yield eased slightly after a jump on Friday that took it to just below 3.6%. Yields for government bonds in Australia and New Zealand rose. Recession fears have resurfaced ahead of the Fed decision Wednesday, when policymakers are expected to downshift to a 50 basis points hike. Yet officials including Chair Jerome Powell have also stressed that borrowing costs will need to remain restrictive for some time, putting them at odds with some investors looking for rate cuts later in 2023.  The ECB follows on Thursday, with consensus estimates for it to also deliver a 50 basis points hike. Markets also have to contend with decisions this week from the Bank of England and monetary authorities in Mexico, Norway, the Philippines, Switzerland and Taiwan. While the tumult of this year has a gauge of global stocks headed for its biggest annual loss since 2008, the world’s biggest investors predict that stocks will see low double-digit gains in 2023. Seventy one percent of respondents in a Bloomberg News survey expect equities to rise, versus 19% forecasting declines. For those seeing gains, the average response was a 10% return. The world’s top fund managers are also mostly bullish on Chinese stocks for 2023. About 60% of respondents in a Bloomberg News survey recommended buying the country’s stocks, while 31% said they are a sell. US natural gas futures extended an advance into a fourth session on an expected surge in heating demand amid a powerful Pacific storm. Oil climbed, rebounding after the biggest weekly loss since April, and gold fell.

Nikkei -0.22% Hang Seng -1.88% CSI -0.83% Shanghai -0.63% Shenzen -0.48%

Eur$ 1.0517 CNH 6.9806 CNY 6.9792 JPY 136.91 GBP 1.2235 CHF 0.9360 RUB 62.5753 TRY 18.6429 WTI$ 71.64 +0.87% Gold 1,787.80 -0.53% BTC 16,931 -1.08% ETH 1,245 -1.55%

S&P -0.04% Nasdaq -0.09% EuroStoxx -0.51% FTSE -0.31% Dax -0.46% SMI

Macro :
- Morgan Stanley’s Wilson Says Stocks Don’t Reflect Earnings Risk
- Bank of America expects a recession next year, Moynihan says
- Goldman’s Waldron Sees ‘Bumpy’ China Reopening Curbing Growth
- Nasdaq to Add 6 Companies to Nasdaq-100 in Annual Reconstitution
- Czech Minister Criticizes Germany for EU Gas-Price Cap Impasse

Keep an eye on :
- AD NA : Ahold Online Unit Bol to Cut 300 Jobs In €225M Savings Plan
- AIR FP : Air India Close to Signing Order for 150 Boeing 737 Max Jets: ET
- AIR FP : SpaceX Launches Japanese Startup Ispace’s Lunar Lander to Moon
- ASC LN : Asos Holds Talks With Lenders on Adding Restructuring Expert
- CLVS US : Clovis Oncology Files for Bankruptcy, Citing Dwindling Liquidity
- COUP US : Thoma Bravo Is Said in Advanced Talks to Buy Coupa Software
- CSGN SW : Credit Suisse’s Rights Offer Featured Drama, $8 Million Bonus
- ELM LN : Elementis Shares Jump After Betaville ‘Uncooked Alert’
- ECV GY : Encavis Completes Investment Phase of €1.1B Infrastructure Fund
- ENEL IM : Enel Sees ~€1.5B Positive Impact on Net Debt From Chile Deal
- EQS GY : EQT to Buy All Va-Q-Tec No-Par-Value Shares for EU26.00/Share
- ERICB SS : Ericsson Rises as Apple Agreement Clears Risk: Street Wrap
- ETL FP : France Must Review Eutelsat’s Russian Broadcasts, Court Says
- HEIA NA : Vietnam Says Heineken May Invest Additional $500m in 10 Years
- BAER SW : Julius Baer to Take CHF57M Impairment on Kairos Investment
- MC FP : L Catterton Looks to Sell Bikemaker Pinarello: Sole
- LSEG LN : Microsoft to Buy About 4% Equity Stake in LSE Group
- MTRO LN : UK FCA Fines Metro Bank £10M
- CHR DC : *NOVOZYMES, CHR. HANSEN TO MERGE
- ORP FP : Orpea Activist Group Gives Alternative to Firm’s Turnaround Plan
- PHP LN : Primary Health Searches for New CEO as Hyman Intends to Retire
- RIO LN : Rio Tinto Acquisition of Turquoise Hill Gets Holder Support
- SAN FP : Sanofi Says It Won’t Make Offer for Horizon Therapeutics
- SAN FP : Amgen Is Said in Talks to Buy Horizon After Sanofi Drops Out
- STLA IM : Stellantis Idles Jeep Plant, Citing Electrification Burden
- SDRY LN : Dunkerton Has Held Talks Over Superdry Buyout, Sunday Times Says
- TIT IM : KKR M&A Push Aids Telecom Italia, But State Has Final Say: React
- TSCO LN : Tesco to Begin Search for New Chair in 2023, Sky News Reports
- VOD LN : Xavier Niel Urges Vodafone to Slim Down Fast and Focus on Europe
- VOW GY : Volkswagen Mulls Skoda Exit from China, Automobilwoche Says

WSJ : Amgen in Advanced Talks to Buy Horizon Therapeutics

Amgen in Advanced Talks to Buy Horizon Therapeutics
U.S. biotechnology company was the last of three suitors standing in an auction for Horizon

Amgen Inc. AMGN -2.42% is in advanced talks to buy drug company Horizon Therapeutics HZNP 0.39% PLC, according to people familiar with the matter, in a takeover likely to be valued at well over $20 billion and mark the largest healthcare merger of the year.

The U.S. biotechnology company was the last of three suitors standing in an auction for Horizon, the people said, after French drugmaker Sanofi SA said Sunday it was out of the running.

A deal could be finalized by Monday assuming the talks with Amgen don’t fall apart, the people said.

Horizon develops medicines to treat rare autoimmune and severe inflammatory diseases that are currently sold mostly in the U.S. Its biggest drug, Tepezza, is used to treat thyroid eye disease, an affliction characterized by progressive inflammation and damage to tissues around the eyes.

The company is Nasdaq-listed, but based in Ireland and has operations in Dublin, Deerfield, Ill., and a new facility in Rockville, Md.

Horizon said last month it was fielding takeover interest from Amgen, Sanofi and Johnson & Johnson, a disclosure prompted by a Wall Street Journal report.

Johnson & Johnson later said it had dropped out.

Last year, revenue from Tepezza more than doubled, driving Horizon’s overall net sales 47% higher to $3.23 billion. Horizon has said that annual global net sales of the drug are targeted to eventually peak at more than $4 billion as the company aims to win approval to sell it in Europe and Japan.

That type of growth is attractive to big drug companies—with many sitting on big piles of cash—that rely on acquisitions as a key strategy to expand sales. Many big drugmakers are looking for new sources of revenue to offset losses when some of their main products lose patent protection.

Analysts expect Amgen will lose sales when patents begin expiring on its big-selling osteoporosis drugs Prolia and Xgeva later this decade. The pair of drugs accounted for nearly $5.3 billion of Amgen’s $26 billion in revenue last year.

In October, Amgen completed a $3.7 billion deal for ChemoCentryx and its drug to treat a rare immune-system disease.

Adding Horizon would provide more rare immune-disease drugs to Amgen’s lineup, which also includes the biotech’s Enbrel and Otezla immune-disease therapies. Amgen could help sell more of Horizon’s products overseas, according to analysts.

Acquiring Horizon could add about $4 billion in new revenue for Amgen by 2024, according to Jefferies & Co.

Other big life-sciences companies have been inking deals in recent months.

Johnson & Johnson recently struck a $16.6 billion deal to acquire heart device maker Abiomed Inc. to bolster sales of its medical-gear division, which had been lagging behind those of its pharmaceutical unit.

Merck & Co. followed with a deal of its own, agreeing to buy blood-cancer biotech Imago BioSciences Inc. for $1.35 billion, ahead of the patent expiration of its cancer immunotherapy Keytruda.

Pfizer Inc., meanwhile, agreed in August to buy Global Blood Therapeutics Inc. for $5.4 billion, in a deal that would give the big drugmaker a foothold in the treatment of sickle-cell disease.

A deal for Horizon would likely rank as the largest healthcare acquisition globally in 2022, ahead of the Johnson & Johnson-Abiomed tie-up. The selloff in stocks this year amid rising interest rates, while putting a damper on deal activity, has also made some companies more attractive targets. At the stock’s peak about a year ago, Horizon was valued at roughly $27 billion.

The shares, which fell sharply earlier this year, have surged since the possibility of a takeover surfaced, and the company now has a market value of about $22 billion.

Horizon’s other drugs include Krystexxa for treating gout, a form of inflammatory arthritis, and Ravicti for a rare, potentially life-threatening genetic disease known as urea cycle disorder that raises ammonia levels in the blood.

Drugs treating rare diseases have emerged as a large source of pharmaceutical sales because they can command high prices that health insurers have been willing to pay.

WSJ : Congress Faces Deadline for Keeping Government Funded

Congress Faces Deadline for Keeping Government Funded
Negotiators are hoping to reach a deal on a full-year spending bill but they disagree on nondefense spending

WASHINGTON—Congressional leaders are set to return to the Capitol on Monday under pressure to negotiate a spending bill that would fund the federal government’s operations beyond Friday.

Negotiators have days to reach a deal on a full-year spending bill or pass a short-term measure delaying the deadline to avoid a partial government shutdown. To reach a longer-term deal, they will have to break the partisan deadlock between Republicans and Democrats, who are split over $26 billion in nondefense spending.

Republicans say that Democrats want big increases for entities such as the Internal Revenue Service that they say are already flush with cash. Democrats say their funding priorities, such as funding veterans’ healthcare, are critical.

Democrats in the U.S. Senate need to convince at least 10 Republicans to agree to advance a spending bill with the 60 votes needed. In the House of Representatives, a spending bill can be passed with a simple majority.

Few other items remain on the congressional agenda before new lawmakers take over for the next session, which begins on Jan. 3. Lawmakers who see the spending bill as the last major piece of legislation to pass are also lobbying hard for negotiators to include other measures they see as top priorities.

Some lawmakers want the spending bill to include the Electoral Count Act, which would change an 1887 law governing how Congress deals with presidential-election disputes. The bill has been pitched as a way to prevent a repeat of what happened following the 2020 election when then-President Donald Trump pressured his vice president, Mike Pence, to reject the Electoral College votes from some states. Mr. Pence declined to do so.

Other lawmakers are trying to include a measure that would extend a Dec. 27 deadline for Boeing Co. to secure federal safety approvals for two new versions of the 737 MAX airplane. The company would be required by law to install new cockpit-alerting systems to help pilots resolve emergencies in the wake of two deadly crashes.

The deadline was set by Congress two years ago, but Federal Aviation Administration approvals have taken longer than expected. Without an extension, Boeing said in a securities filing that it might cancel both planes, exposing it to financial losses. The company didn’t specify how much it could lose in the filing, but orders for the planes are valued at tens of billions of dollars in revenue.

Sen. Roger Wicker (R., Miss.), the top Republican on the Senate committee that oversees transportation issues, said he was hopeful that an extension would be included in a spending bill.

“I think it’s a reasonable ask,” he said last week.

Lawmakers could also include a provision that would shield banks from penalties if they handle marijuana-related transactions.

Banks that do business with the cannabis industry risk losing their federal banking charters because marijuana, despite being legal in some states, remains illegal on a federal level. As a result, some marijuana businesses are excluded from credit-card processing and rely heavily on cash to operate, making them targets for robberies.

Sen. Joe Manchin (D., W.Va.) could look toward the spending bill as a way to pass a measure that would speed up environmental reviews of major energy projects, including natural-gas pipelines, electricity transmission lines, wind farms and solar-power installations.

Sens. Martin Heinrich (D., N.M.) and Roy Blunt (R., Mo.) are pushing to include a measure that would steer federal money toward projects to restore habitats for struggling species.

The measure would fund state conservation plans, which are federally required strategies and wish lists that wildlife agency officials keep on struggling animal, fish and plant populations they monitor. Those plans say more than 12,000 species need conservation help because of extreme weather, habitat loss, invasive species and disease. Such plans received unstable funding in the past.

“Without enough resources, wildlife agencies have been forced to pick and choose which species are worth saving,” Mr. Heinrich said in a statement.

Senate lawmakers are expected this week to pass a defense policy bill that authorizes U.S. military leaders to purchase new weapons and increase pay for troops, and lifts a requirement for members of the military to get vaccinated against Covid-19.

The annual National Defense Authorization Act would increase America’s total national security budget for fiscal year 2023 to $857.9 billion. House lawmakers passed the NDAA bill on Thursday with 350 votes in favor and 80 votes against it.

Republicans had pushed for the bill to end the Defense Department’s Covid-19 vaccine rule, arguing that scrapping it would help recruitment and prevent the loss of additional troops whose departures have left the U.S. military weaker.

Katherine Kuzminski, a senior fellow and program director on military, veterans and society issues for the Center for a New American Security, a military think tank, said it is hard to assess whether vaccine-related discharges have hurt the U.S. military’s capability because it is unclear whether the people who left worked in high-profile, hard-to-fill specialized positions or whether they were easily replaceable.

On recruitment, she said that younger people who are weighing military service “are less likely to make decisions regarding military recruitment based on political debates.”

FT : UK pharmacies say they are being forced to dispense Strep A antibiotics at

UK pharmacies say they are being forced to dispense Strep A antibiotics at a loss
Health chiefs deny shortage of penicillin and amoxicillin following surge in infections

Pharmacies in the UK say they are being forced to dispense antibiotics to treat Strep A infection at a steep loss because of soaring wholesale prices, as health chiefs denied that there were shortages.

An unseasonably early surge in Group A Streptococcus, mainly among schoolchildren, has pushed up demand for penicillin and amoxicillin, the main antibiotic treatments, in recent days, heaping pressure on already stretched pharmacies.

A total of 851 Strep A cases were recorded by the UK Health Security Agency in the week ending November 20, compared with an average of 186 during the same period in recent years. The bacterial infection, which typically causes mild symptoms including a sore throat or skin rash, has led to the deaths of 16 children across the UK, according to UKHSA.

In response to the outbreak, health officials have lowered the prescription threshold for penicillin and amoxicillin, and even considered allowing preventive antibiotics to be given to close contacts of infected individuals, leading to an increase in demand.

Consequently, pharmacies have reported struggling to obtain supplies of the drugs from wholesalers and, on the occasions the antibiotics were available, said the wholesale price outstripped the compensation they received from the NHS, meaning they were losing money on each prescription.

“All these things that were taken as a given — that you press a button, order amoxicillin, it arrives the next day, the pharmacy makes a little bit of money, and the patient gets their medicine — that has all gone,” said Olivier Picard, managing director of Newdays Pharmacy and a board member of the National Pharmacy Association (NPA). He added that several parents had told him they had called more than a dozen pharmacies and failed to find antibiotics in stock.

Leyla Hannbeck, chief executive of the Association of Independent Multiple Pharmacies, said the situation was unsustainable. “We need better visibility on supply from the wholesalers and manufacturers, and we need pharmacists to be adequately reimbursed for these medicines as they can’t afford to give them out at a loss.”

Health officials and wholesalers insist that there are sufficient supplies of the antibiotics but acknowledged they were taking time to get to pharmacies.

“We have plenty of antibiotics,” Stephen Powis, NHS medical director, told the BBC. “Clearly, we’ve been asking people to prescribe them a little bit earlier. That means that pharmacies have needed extra supplies, so the government is working with wholesalers to make sure those supplies get out.”

Three pharmacies told the Financial Times that the minimum they had paid for amoxicillin or penicillin liquid solution from wholesalers, including Alliance Healthcare and AAH, in recent days was £5, which is more than double the amount they will receive in compensation under the NHS drug tariff scheme.

Martin Sawer, executive director at the Healthcare Distribution Association, which represents wholesalers, said the higher price directly reflected the amount wholesalers were having to pay manufacturers. He denied there was a shortage but said the supply chain was having to adjust to the “sudden huge demand surge”.

Sigma Pharmaceuticals apologised for setting its wholesale price at more than £19 for amoxicillin liquid solution, nearly 10 times the reimbursement cost paid by the NHS to pharmacies, blaming the mistake on an “IT glitch”.

Andrew Lane, NPA chair, urged the Department of Health and Social Care to update its concessionary price for amoxicillin and penicillin “as quickly as possible” so pharmacies don’t have to “foot the bill” for the Strep A outbreak.

If a medicine is added to the concessions list, pharmacies are reimbursed for any price increase.

A total of 158 medicines were on November’s concessions list. Janet Morrison, chief executive of the Pharmaceutical Services Negotiating Committee, which negotiates the concessions lists with the health department, said pharmacies were at “breaking point”.

She said they were “helpless against market forces that are working against them, and urgently need government assurance that all medicines will be available, and not at wildly inflated prices”.

The health department said there was “no supplier shortage”, explaining that “prices can fluctuate” because of surges in demand for certain antibiotics. “But no company should use this as an opportunity to exploit the NHS.”