After Hours Summary: VREX +8%, LZB +7% rise while AVDX -7%, DLO -7% decline on earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: VREX +8.0%, LZB +7.0%, TTCF +2.5%
Companies trading higher in after hours in reaction to news: ODP +3.4% (announced $150 mln accelerated share repurchase and $150 mln increase in existing stock repurchase plan), IIIN +1.8% (declared special cash dividend), APA +1.3% (announced results from flow testing at Sapakara South appraisal well and drilling results from Bonboni exploration well), ICHR +1% (announced acquisition of IMG)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: AVDX -6.9% (also announced partial early lock-up release), DLO -6.9%, DLB -5.0%, GSM -2.6%
Companies trading lower in after hours in reaction to news: AVIR -9.9% (to terminate strategic collaboration with Roche [RHHBY] for the development of AT-527 for the treatment of COVID-19), ECVT -8.9% (announced secondary public offering), ALHC -7.3% (launched secondary public offering), VRAY -5.6% (announced public offering of common stock), STEM -5.5% (announced offering of $350 mln of green Convertible Senior Notes), ROVR -5.1% (launched secondary public offering of common stock), NOG -4.8% (announced agreement to acquire Permian Basin assets owned by Veritas Energy; launched public offering of common stock), PRVA -4.7% (launched secondary public offering), KRNT -4% (launched public offering of ordinary shares), EYPT -4% (announced $100.0 mln public offering), ONON -3.1% (announced partial early lock-up release; continued volatility following earnings), NKLA -1.8% (filed for share resale offering)
Early premarket gappers
- Gapping up:
- KZR +62.8%, AXON +22.8%, RPRX +11.3%, PLBY +11.1%, PRCH +10.7%, RXT +10.1%, XM +8.8%, ONON +7.5%, NTES +6.6%, FND +6.5%, QTNT +6.3%, VOD +5.5%, LCID +5.1%, ALV +4.4%, POWW +3.7%, TALO +2.9%, TLIS +2.6%, UVE +2.5%, GOEV +2.4%, RKLB +2.3%, LFG +1.7%, VNOM +1.5%, DAN +1.1%, KVSA +1.1%, FTI +0.9%
- Gapping down:
- TALK -30.7%, BODY -27.5%, OPTN -26.8%, NRDY -11.1%, NEGG -10.1%, CLOV -9.3%, DM -7.7%, CMP -7.5%, MARA -7.4%, DNMR -7.2%, DOYU -6.6%, MITT -5.9%, SOFI -5.5%, DH -5.2%, MELI -5.1%, COOK -4.8%, CTOS -4.6%, NWE -4.2%, IONQ -4.1%, APLS -3.7%, STEP -3.6%, FFIE -3.4%, U -3.3%, SUI -2.9%, TBPH -2.7%, NCLH -2.4%, CENX -2.3%, RANI -2%, CERT -1.7%, DV -1.5%, GATO -1.5%, EVCM -1.4%, SSYS -1.1%, AAP -1%, CUBE -0.9%, VWE -0.9%
Russian anti-satellite missile put astronauts at risk, US warns
Russia says safety is priority after state department says debris from test threatens International Space Station
Russia has said the safety of space crew is its “top priority” after the US accused it of testing an anti-satellite missile in a “destructive” move that generated debris and put astronauts on the International Space Station at risk.
In a statement released on Monday afternoon, Antony Blinken, US secretary of state, said Russia had earlier in the day “recklessly conducted a destructive test of a direct-ascent anti-satellite missile against one of its own satellites”.
Blinken said the test had generated more than 1,500 pieces of “trackable orbital debris and will likely generate hundreds of thousands of pieces of smaller orbital debris”, threatening people working at the International Space Station and “other human space flight activities”.
The actions “clearly demonstrate that Russia, despite its claims of opposing the weaponisation of outer space, is willing to jeopardise the long-term sustainability of outer space and imperil the exploration and use of outer space by all nations through its reckless and irresponsible behaviour”, Blinken said. He added that the US would work with its allies and partners to respond.
Russia’s Roscosmos state space agency said on Tuesday that the Russian automated system for the Prevention of Dangerous Situations in Outer Space was monitoring the situation “to prevent and counter all possible threats to the safety of the ISS and its crew”.
Space crew safety “has always been, and remains, our top priority”, Roscosmos added, stressing the importance of continued international co-operation in space.
“We are convinced that only joint efforts by all spacefaring nations can ensure the safest possible coexistence and activities in outer space,” Roscosmos said.
Following the Russian test, astronauts and cosmonauts on the ISS had to be woken up in order to undertake emergency safety procedures because of the debris, said Nasa administrator Bill Nelson. He said the debris also threatened the Chinese space station and Chinese personnel on board.
“[I]t is unthinkable that Russia would endanger not only the American
and international partner astronauts on the ISS, but also their own
cosmonauts. Their actions are reckless and dangerous,” Nelson said in
a statement, adding personnel were directed to close some hatches to
keep safe.
“Nasa will continue monitoring the debris in the coming days and
beyond to ensure the safety of our crew in orbit,” he added.
The agency said the ISS was passing through or near the debris cloud every 90 minutes.
The test comes amid rising tensions between the US and Russia after Washington last week publicly warned Moscow against invading Ukraine, where officials have become alarmed by the build-up of up to 114,000 Russian troops on its borders.
This is not the first time states have tested missiles on satellites. During the cold war, the US and Russia designed and tested anti-satellite weapons. Such missiles could theoretically shoot down enemy satellites that control intelligence and communications and threaten to turn space into a war zone.
More recently, China and India have also tested aspects of anti-satellite systems. In 2007 China drew international condemnation when it blew up one of its own failed satellites, creating more than 35,000 pieces of debris. A recent Rand Corporation report described the event as “the largest debris-generating incident to date”.
“This event is a clear risk to the International Space Station but, depending on the energy and angle of the impact, also a risk to other satellite constellations in this portion of low Earth orbit, including elements of the SpaceX Starlink constellation,” said Bruce McClintock of the Rand Space Enterprise Initiative.
“While the short-term actions to protect the astronauts on the shuttle are most urgent, this event is a stark reminder of the importance of establishing a ban of debris-generating ASAT testing. Debris generation affects everyone.”
Governments are increasingly concerned about the problem of space debris, since fragments as small as a fingernail are capable of inflicting great damage to orbiting spacecraft. Currently there are almost 30,000 orbiting objects that are regularly tracked, but it is estimated that there are substantially more than 1m that are too small to be followed.
Many in the space industry are publicly calling for international collaboration on new rules to govern behaviour in space as a record number of satellites are launched into low Earth orbit. Falling launch costs and cheaper satellites have made it possible for private companies to develop commercial space-based businesses such as satellite broadband or Earth observation.
But with SpaceX alone hoping to launch more than 40,000 satellites, closely followed by Amazon and dozens of others, many in the industry are increasingly concerned about the risks of collisions creating more debris that could threaten the sustainability of space.
The “Kessler syndrome” model outlines a catastrophe scenario where debris from one collision sets off a chain reaction of collisions, ultimately closing off safe access to space.
Jonathan McDowell, an astronomer at the Center for Astrophysics who tracks activity in space, said on Twitter: “I condemned the 2007 Chinese test, the 2008 US test, the 2019 Indian test, and I equally condemn this one. Debris-generating anti-satellite tests are a bad idea and should never be carried out.”
Mike Rogers, the most senior Republican congressman on the US House of Representatives armed services committee, called the reports of Russia’s test “concerning” and said such events were “exactly why we stood up Space Command and created the Space Force”.
“Space has already become a warfighting domain,” he said. “The Biden administration must back rapid defence modernisation with a focus on space. I am afraid that this test, like the 2007 Chinese anti-satellite test, will impact space for many years to come.”
Life insurer LV defends proposed sale to private equity group Bain
Mutually owned group criticises rival Royal London’s proposal as voting deadline nears
The war of words over Bain Capital’s planned takeover of LV is heating up, with both parties and rival bidder Royal London broadcasting their positions as voting gets under way on the sale of one of the UK’s oldest mutually owned life insurers.
Pressure is mounting on the deal ahead of next month’s voting deadline, with senior politicians and some members publicly expressing concerns about the demutualisation, and asking why the private equity group was chosen over fellow mutual Royal London in last year’s bidding process. Gareth Thomas, an MP who is a leading opponent of the deal, has called for an “honest debate about the virtue of both bids”.
Royal London upped the ante last week, proposing splitting up LV in a three-way deal with Bain. The group said on Sunday that it was “ready to explore any option that delivers a better member outcome, including options that would allow LV members to become members of Royal London”.
LV issued a lengthy statement on Tuesday explaining why it felt a sale of the business was the best route for members and why Bain’s £530m offer was chosen over Royal London’s £540m proposal and other bidders last year.
Unlike Bain, Royal London was “proposing to leave material liabilities in respect of the non-profit business” with LV’s with-profits members, LV said, confirming a Financial Times report on Saturday.
Royal London’s offer also included “higher and less certain administration and investment management costs”, making it worse value for LV members on a like-for-like basis, it added.
LV said the Royal London proposal would have led to significant job losses as part of the latter’s “value creation” and offered no commitment for two of LV’s locations. Bain has previously committed to “support . . . an ongoing presence across LV’s three UK sites”.
LV also said it was “surprised and disappointed” that Royal London declined its request to “progress its due diligence investigations during the final stages of the process”.
Responding to the latest communication from Royal London, LV said its board continued to unanimously recommend the Bain offer rather than “dismantling” the group.
“The board of LV is clear that at no point have any of Royal London’s proposals included an offer for membership rights or continuation of mutuality for LV members, contrary to media speculation,” said LV’s chair Alan Cook.
Royal London did not respond immediately to a request for comment. However, its chief executive Barry O’Dwyer told BBC Radio 4’s Today programme on Tuesday that “we think they should do everything possible to retain [mutual] status”.
“My message to LV is, let’s talk, there must be a better way. I think there is a significant risk that LV members will reject this [Bain] deal,” he said.
He added that it was not “credible” that LV members and outside observers would believe that member benefits and LV jobs were best protected under private equity ownership.
Bain stressed in a media statement on Monday its “long-term commitment” to LV, pledging £160m of investment in IT, operations, product development and customer service, to be funded from operating cash flows. The group also said it aims to increase LV’s policyholder numbers from 1.2m to 2m.
Bain said no new debt will be added to LV as part of the transaction and that the target’s debt will be reduced at the first available redemption date.
- Vodafone (VODI TH) +2.2%
- Vodafone 2Q Organic Service Revenue Beats Estimates
- Rio Tinto (RIO1 TH) +1.7%
- Prosus (1TY TH) +1.3%
- Naspers Sees 1H HEPS as a Loss; Core HEPS Rising 8%-15%
- Kering (PPX TH) +1.2%
- AB InBev (1NBA TH) +1%
- HeidelbergCement (HEI TH) +1%
- Shell (R6C TH) +1%
- Vinci (SQU TH) +0.9%
- Ubisoft (UEN TH) +0.8%
- Lanxess (LXS TH) -0.8%
- AMS (DQW1 TH) -0.8%
- Delivery Hero (DHER TH) -0.8%
- Carrefour (CAR TH) -0.8%
- TUI (TUI1 TH) -0.9%
- Novozymes (NZM2 TH) -1.8%
DAX:
- HeidelbergCement (HEI TH) +0.9%
- HeidelbergCement Raised to Buy at SocGen; PT 75 euros
MDAX:
- No major movers
SDAX:
- Kloeckner (KCO TH) +1.1%
- Schaeffler (SHA TH) -0.9%
- ADVA Optical (ADV TH) -1.2%
- Dermapharm (DMP TH) -1.4%
- Dermapharm Sees FY EBITDA +50% to +60%
- SGL (SGL TH) -1.5%
Most Asian stocks rose Tuesday and the yuan climbed as traders weighed the outcome of the first face-to-face virtual summit between U.S. President Joe Biden and Chinese leader Xi Jinping. Treasury yields dipped.
MSCI Inc.’s Asia-Pacific share gauge advanced for a fourth session, while U.S. and European equity futures fluctuated after the S&P 500 and Nasdaq 100 ended flat. The Asian equity gains were led by Hong Kong, which was buoyed by a rally in Macau casino operators, while Japanese shares edged up.
Biden and Xi spoke of the need for cooperation, with both sides aiming to stabilize U.S.-China ties while downplaying expectations for big breakthroughs. The yuan approached its strongest level since 2018 on hopes of easing tensions.
The dollar fell and the 10-year U.S. Treasury yield was around 1.60%. Bonds retreated in the U.S. on speculation the Federal Reserve may have to speed up policy tightening to fight price pressures. Stronger-than-expected New York manufacturing data added to the case for an earlier interest-rate liftoff.
There are more signs that an announcement about Biden’s pick to head the Federal Reserve is due soon. Both current Chair Jerome Powell and Fed Governor Lael Brainard have been interviewed for the top job.
Elon Musk exercised options and sold more Tesla Inc. shares, continuing a streak of sales that helped tank the stock.
Oil rose as investors wait to see if the Biden administration will tap crude reserves. Gold pushed higher, while Bitcoin slipped to trade around $61,000.
US After Hours : AXON +20.2%, PLBY +13.8%, RXT +12.1%, PRCH +9.4% jumping on earnings; BODY -21.1%, NRDY -11%, AAP -2.2% fall on earnings
Nikkei +0,11% Hang Seng +1,20% CSI +0,07% Shanghai -0,26% Shenzen -0,35%
Eur$ 1,1375 CNH 6,3745 CNY 6,3771 JPY 114,18 CHF 0,9247 RUB 72,5628 TRY 10,1354 WTI$ 81,54 Gold 1,66,20 BTC 60,890 -3000 ETH 4340 -230
S&P -0,04% Nasdaq +0,08% EuroStoxx +0,13% FTSE -0,02% Dax +0,01% SMI
Macro :
- *BIDEN PRESSED XI TO FULFILL PHASE 1 TRADE COMMITMENTS: OFFICIAL
Keep an eye on :
- ALIV SS : Autoliv Updates Financial Targets, Announces New Share Buy Backs
- BT/A LN : BT Presses Fiber Advantage as Supply Crunches Trouble Rivals
- BWLPG NO : BW LPG 3Q Ebitda Misses Estimates
- DIS US : Marvel’s ‘Eternals’ Stays Atop Box Office With $26.9 Million
- ENDUR NO : Endur Offering of 226.7m Shares Prices at NOK0.75/Share
- ILD FP : Iliad Asks EU to Examine M6, TF1 Merger: Les Echos
- ILLY IPO : Italian Coffee Roaster Illycaffe Replaces CEO With Eyes on IPO
- ITP FP : Interparfums 2022 Sales Forecast Misses Estimates
- JMT PL : J. Martins Holder Asteck Offers 31.5m Shares: Terms - 19,75/share
- JMT PL : J. Martins Holder Asteck Offers 31.5m Shares: Terms - 19,75/share
- MMT FP : Iliad Asks EU to Examine M6, TF1 Merger: Les Echos
- MUSTI FH : Musti Group 4Q Operating Profit Misses Estimates
_ NDX1 GY : Nordex Gets Order for 68.4 MW in Turkey From Enerjisa Üretim
- RIVN US : Rivian May Build Electric Vehicle Plant in Georgia, AJC Says
- SU FP : Emerson Electric FY Adjusted EPS Forecast Beats Estimates
- STR AV : Strabag 9M Order Book EU21.55B Vs. EU18.96B Y/y
- SUN SW : Sulzer Chairman Loescher Won’t Stand for Re-Election at 2022 AGM
- TWEKA NA : TKH 3Q Return On Sales 13.7% Vs. 10.4% Y/y
- TSLA US : Elon Musk Exercises Options, Sells $930 Million of Tesla Shares
- TFI FP : Iliad Asks EU to Examine M6, TF1 Merger: Les Echos
- TKA GY : Thyssenkrupp Pushes Ahead With IPO of $5.7 Billion Hydrogen Unit
- VOW GY : Volkswagen Rejected as Supreme Court Allows Emissions Suits
- VOW GY : Audi in Talks With McLaren to Re-Enter Formula 1: FT
- YEW LN : Slate Office REIT in Pact to Buy Yew Grove REIT for €1.017/Share