-
Nel (D7G TH) +3%
- Nel Raised to Buy at HSBC; PT 33 kroner
-
Novo Nordisk (NOVC TH) +2.6%
- Novo Nordisk CEO Says 2025 Targets Are Within Reach: Borsen
- Carnival Plc (POH1 TH) +2.2%
- CD Projekt (7CD TH) +2.1%
- Adidas (ADS TH) +2%
- Evolution (E3G1 TH) +1.9%
-
BAT (BMT TH) +1.9%
- BAT Raised to Buy at Jefferies; PT 3,606 pence
- Argenx (1AE TH) +1.8%
-
Shell (R6C TH) +1.6%
- Lessons From Europe’s 4Q Results: Favor Cyclicals vs. Defensives
- BE Semiconductor (BSI TH) +1.4%
-
Imperial Brands (ITB TH) -0.2%
- Imperial Brands Cut to Hold at Jefferies; PT 1,466 pence
- GEA Group (G1A TH) -0.4%
- Tomra (TMR TH) -0.8%
DAX:
- Adidas (ADS TH) +2.1%
- Stock down 6.1% yesterday
- Infineon (IFX TH) +1.3%
- Deutsche Wohnen (DWNI TH) +1.1%
- Deutsche Wohnen Raised to Buy at LBBW; PT 45 euros
- RWE (RWE TH) +1%
- VW (VOW3 TH) +1%
MDAX:
- Aixtron (AIXA TH) +2.1%
- Lufthansa (LHA TH) +2%
- Thiele Family to Remain Major Lufthansa Holders, Reuters Says
- Shop Apotheke (SAE TH) +1.9%
- Encavis (CAP TH) +1.8%
- Varta (VAR1 TH) +1.5%
- German Holdings Round-Up: Vossloh, Varta, TAG Immobilien
SDAX:
- SMA Solar (S92 TH) +2.4%
- Leoni (LEO TH) +1.1%
- LPKF (LPK TH) +1.1%
- Metro (B4B TH) +1%
- Schaeffler (SHA TH) +1%
- Hamborner REIT (HABA TH) -1%
- Indus Holding (INH TH) -2.2%
- Indus Holding Offering of 2.45m Shares Prices at EU34.90/Share
Microsoft Is in Exclusive Talks to Acquire Discord
Deal valuing chat app at $10 billion or more could be completed next month
Microsoft Corp. is in advanced talks to acquire messaging platform Discord Inc. for $10 billion or more, according to people familiar with the matter, as the software giant seeks to deepen its consumer offerings.
Microsoft and Discord are in exclusive talks and could complete a deal next month, assuming the negotiations don’t fall apart, the people said.
Originally favored by gamers, San Francisco-based Discord offers voice, text and video chatting. The platform’s popularity has surged since the pandemic took hold as people stay home and connect online—as has that of other chat services, like Facebook Inc.’s WhatsApp and Signal Messenger LLC. Discord has been considering an IPO.
Microsoft, which has a market value of more than $1.7 trillion, has been on the hunt for an acquisition that would help it reach more consumers. Last summer, it held talks to buy the popular video-sharing app TikTok amid a high-profile geopolitical standoff prompted by the Trump administration, before abandoning the effort.
VentureBeat reported this week that Discord was exploring a sale and had entered exclusive discussions with an unnamed suitor.
Buying the six-year-old startup could help Microsoft boost both its videogame business, which includes the successful Xbox game platform, and its social-networking footprint.
Its efforts to gain scale in social media have been halting. In addition to the unsuccessful TikTok talks last year, Microsoft gave up on Mixer, its videogame live-streaming service that struggled to compete with the likes of Amazon.com Inc.’s Twitch, Alphabet Inc.’s YouTube and Facebook Gaming.
Should a deal come together, it would be Redmond, Wash.-based Microsoft’s largest acquisition since its $26.6 billion purchase of LinkedIn Corp. in 2016. The technology giant has made a series of acquisitions in recent years, including its $7.5 billion purchase of software-development platform GitHub Inc. in 2018 and its $7.5 billion purchase of videogame company ZeniMax Media Inc., which closed earlier this year.
Discord got its start in 2015 as a platform that made it easy for videogame enthusiasts to chat while playing online games together. It now has about 140 million monthly users, and while many newcomers have formed communities dedicated to a range of topics unrelated to games, it remains a hot spot for gamers looking to connect with one another online. Users say it offers higher-quality audio than other chat services, including even that of Microsoft’s Xbox and Skype, which Microsoft also owns.
Discord’s growth jumped in the past year, with its valuation doubling to $7 billion after a December funding round. It generated $130 million in revenue in 2020, up from nearly $45 million in 2019, though it still isn’t profitable, The Wall Street Journal has reported. In a move that laid the groundwork for a potential IPO, Discord last week hired its first finance chief, Tomasz Marcinkowski, a former Pinterest Inc. executive.
Asian stocks rose Friday, tracking U.S. peers as vaccine distribution bolstered economic optimism despite a climb in global Covid-19 cases. Oil was on course for a third week of losses.
A regional share gauge added more than 1%, led by Chinese and Japanese stocks. U.S. and European equity futures pointed higher after the S&P 500 advanced and small-caps rallied, buoyed by President Joe Biden’s doubling of a vaccination target. U.S. banks extended gains in after-hours trading as the Federal Reserve signaled an end to pandemic-era dividend curbs.
Ten-year U.S. Treasury yields rose slightly after another lackluster auction of seven-year notes. The reaction was muted compared with the upheaval in bonds and interest-rate sensitive stocks following poor demand at last month’s sale. The dollar dipped but remained on course for its best week in three.
Crude prices veered back up toward $60 a barrel in a volatile few days of trade as investors weighed the implications of a huge container ship still stuck in the Suez Canal.
US After Hours Banks rise as Fed says limits on dividends and buybacks will end for many on Jun 30; TLS +17.9%, PRGS +2.6% higher on earnings; SAIC -11.4%, BLNK -4.6% lower on earnings
Nikkei +1.56% Hang Seng +1.74% CSI +2.48% Shanghai +1.75% Shenzen +2.43%
Eur$ 1.1782 CNH 6.5429 CNY 6.5423 JPY 109.26 GBP 1.3760 CHF 0.9400 RUB 75.79 TRY 7.9662 WTI$ 59.33 +1.31% Gold 1,729 +0.12% BTC 52,825 +1185
S&P +0.47% Nasdaq +0.71% EuroStoxx +0.88% FTSE +0.79% Dax +0.81% SMI +0.21%
Macro :
Macro :
- Iran Missile Hit Israel-Owned Ship in Arabian Sea, TV Says (2)
- Biden Says Next Major Initiative Is Rebuilding Infrastructure
- France Extends Lockdown to Three More Regions as Cases Soar
Keep an eye on :
- France Extends Lockdown to Three More Regions as Cases Soar
Keep an eye on :
- ABNN SW : ABB Plans Follow-Up Buyback of as Much as $4.3 Billion
- ALV GY : Allianz Said to Lead Race for Aviva’s $2.9 Billion Polish Unit
- ATL IM ; Benetton, CRT to Reject Extension of Autostrade Spin-off Plan
- BT/A LN : Davidson Kempner Acquiring Tranche of Stock in Worldpay: Sky
- COPN SW : Cosmo Sees 2021 Operating Income EU3M to EU5M
- CSGN SW : Credit Suisse Sees Potential Greensill Fund Losses of $3b: FT
- CSGN SW : Credit Suisse Sees Potential Greensill Fund Losses of $3b: FT
- DAI GY : Mercedes Expects to Raise the Electric Bar With Flagship Sedan
- DMYDB SS : Diamyd Medical Offers SEK60m Shares
- EBRO SM : Lustucru Ready to Make Offer for Ebro’s Panzani: Les Echos
- ENI IM : Eni, Sonatrach Sign Pacts in Upstream, Research, Development
- EL FP : Essilorluxottica to Buy Walman
- EXO IM : Exor Board Proposes Dividend of EU0.43/Share (March 25)
- HMB SS : H&M Stores Vanish From China Maps as Xinjiang Spat Worsens
- IIA AV : Immofinanz Boosts Offer Price for S Immo to EU22.25 a Share
- INH GY : Indus Holding Offers Up to 2.45m Shares
- KAZ LN : KAZ Minerals Chairman Is Said to Plan Increase to Buyout Offer
- KBX GY : Thiele Family to Hold Knorr-Bremse AG Stake Via Foundation
- NFON GY : NFON Offers Up to 1.5m Shares via Joh Berenberg Gossler & Co. KG
- NOVOB DC : Novo Nordisk CEO Says 2025 Targets Are Within Reach: Borsen
- PGHN SW : Partners, PSP Said to Mull Sale of $3.5 Billion Labs Firm Cerba
- SEPL LN : Seplat Petroleum Prices $650M 7.75% Senior Notes Due 2026
- SHOT SS : Scandic to Offer Convertibles, Extend Credit Line With Banks
- SGC LN : Stagecoach: Megabus Coach Services to Re-Start March 29 in U.K.
- TC1 GY : Tele Columbus Sees 2021 Revenue EU465M to EU475M
>>> Up
* Assa Abloy Raised to Overweight at Barclays; PT 280 kronor
* BAT Raised to Buy at Jefferies; PT 3,606 pence
* CA Immo Raised to Buy at SRC Research; PT 41 euros
* CA Immo Raised to Buy at SRC Research; PT 41 euros
* Celyad Oncology SA ADRs Cut to Hold at JonesTrading
* Deutsche Wohnen Raised to Buy at LBBW; PT 45 euros
* ITM Power Raised to Buy at HSBC; PT 550 pence
* Nel Raised to Buy at HSBC; PT 33 kroner
* Next Raised to Outperform at RBC; PT 8,800 pence
* Polytec Holding Raised to Buy at Erste Group; PT 12.30 euros
* Rockwool Raised to Hold at Nordea
* Schibsted Raised to Overweight at JPMorgan; PT 432 kroner
* Zooplus PT Raised to 270 euros from 220 euros at Liberum
>>> Down
>>> Down
* Danone Cut to Neutral at Credit Suisse; PT 62 euros
* Hamburger Hafen Cut to Sell at LBBW; PT 18 euros
* Imperial Brands Cut to Hold at Jefferies; PT 1,466 pence
* Kuehne + Nagel Cut to Reduce at Baader Helvea
* Kuehne + Nagel Cut to Reduce at Baader Helvea
* Standard Life Aberdeen Cut to Hold at HSBC; PT 300 pence
* u-blox Cut to Reduce at Baader Helvea; PT 63 Swiss francs
>>> Initiation
>>> Initiation
* Ambea Rated New Buy at SEB Equities; PT 88 kronor
* Apple Reinstated Outperform at Exane; PT $150
* Apple Reinstated Outperform at Exane; PT $150
* Autoliv Reinstated Equal-Weight at Wells Fargo; PT $97
* EFG International Rated New Outperform at Mediobanca SpA
* Neste ADRs Rated New Underperform at Cowen; PT $21
* Ocado Cut to Hold at Berenberg; PT 2,390 pence
* Poste Italiane Rated New Overweight at Barclays; PT 14 euros
* Richemont Rated New Hold at Investec; PT 95 Swiss francs
* Vontobel Rated New Neutral at Mediobanca SpA
>>> Call
* Next Upgraded on Strong Positioning, Cash Return Potential: RBC
>>> Call
* Next Upgraded on Strong Positioning, Cash Return Potential: RBC
* Ocado Cut With High Expectations to Weigh on Stock: Berenberg
Companies raise record $140bn in US junk bond market in first quarter
Fundraising exceeds record at height of Covid crisis, when groups sprinted to fortify their finances
Companies have issued $140bn in the US junk bond market over the past three months, outpacing a record dash for cash in the second quarter of 2020 when groups raced for funding to survive the shock of coronavirus.
The data, collated by Refinitiv, highlight how even riskier borrowers have been able to take advantage of low borrowing costs to fund acquisitions, pay their owners dividends and refinance existing debt.
It is also the latest sign of the scale of the rebound from a year ago, when high-yield bonds were among the assets under intense pressure during a turbulent time in the financial markets.
“It’s shocking,” said John McClain, a portfolio manager at Diamond Hill Capital Management. “I did not expect this. But at this point, I don’t expect any slowdown soon.”
The three biggest issuance quarters on record have all fallen in the past 12 months, helping to propel the size of the US high yield market towards a record $1.5tn, according to data from Ice Data Services, from $1.2tn at the start of last year. This large-scale issuance also means companies will have more debt that needs to be refinanced later, something that is expected to boost future issuance volumes.
Investors have flocked to junk deals as low interest rates have pushed them to seek out higher returns in riskier markets, predicated on the US economic recovery taking root and helping to bolster low-rated companies' ability to repay their debts.
Cash-strapped cruise operator Royal Caribbean raised $1.5bn this week to refinance debt coming due over the next two years, according to people familiar with the deal, all while still burning through a quarter of a billion dollars per month while ships remain docked due to the pandemic, according to regulatory filings.
Earlier this month retailer Neiman Marcus, which collapsed last year, raised $1.1bn — increased from $1bn due to investor demand — to refinance loans taken out to fund its exit from bankruptcy. Cinema operator Cinemark and struggling airline American Airlines also both issued bonds earlier this month to repay existing debt.
It has also proved a lifeline for many energy companies that have found a more receptive investor base following a sustained rally in the price of oil.
The demand for high-yield bonds has even allowed some companies to give their owners a bumper payday. Communications company Liberty Latin America raised $820m this week to refinance debt and pay $250m to shareholders. Mortgage lender Loan Depot used a $600m bond to both pay down debt and fund a special dividend, according to people familiar with the deal.
However, some investors and analysts are beginning to signal a more caution approach as rising inflation expectations knock US government bond prices, which has begun dragging down junk bonds.
“Right now the market is favourable so you see a flood of issuance,” said Gary Pokrzywinski, chief investment officer for Strategic Income Management, an asset management firm focused on corporate debt
“If markets start to struggle it will shut down. High yield issuers learned a long time ago that they need to come to market early to refinance their debt. So when markets are open you see a flood of bonds.”
Deliveroo on the defensive
Arrival, Chinese tech stocks tumble, trade unions take on AI
The final leg of Deliveroo’s much hyped initial public offering in London is getting bumpy.
The food delivery app, which is targeting a market capitalisation of up to £8.8bn, is under increasing pressure to justify its model of using self-employed riders, following Uber’s decision to reclassify its UK drivers — although not its food couriers — as workers with entitlement to the minimum wage and other benefits.
Analysis of rider earnings published today by The Bureau of Investigative Journalism found that on an hourly basis, a third of drivers in the UK were paid less than the minimum wage. (“Unverifiable, misleading claims”, said Deliveroo).
Uber’s hand, of course, was forced by a Supreme Court ruling that has been tipped as a game-changer for the gig economy. Deliveroo has already warned investors that if it were forced to change its business model there was a risk of incurring “significant additional expense” or even exiting some markets.
Some investors are turned off. “There is a big question about whether that business is a sustainable one and therefore whether they can be profitable enough while being able to grow. It is not just the employee rights concerns but the governance ones as well,” said Andrew Millington, head of UK equities at Aberdeen Standard Investments, part of the FTSE 100-listed asset manager.
Deliveroo on the defensive
Arrival, Chinese tech stocks tumble, trade unions take on AI
The final leg of Deliveroo’s much hyped initial public offering in London is getting bumpy.
The food delivery app, which is targeting a market capitalisation of up to £8.8bn, is under increasing pressure to justify its model of using self-employed riders, following Uber’s decision to reclassify its UK drivers — although not its food couriers — as workers with entitlement to the minimum wage and other benefits.
Analysis of rider earnings published today by The Bureau of Investigative Journalism found that on an hourly basis, a third of drivers in the UK were paid less than the minimum wage. (“Unverifiable, misleading claims”, said Deliveroo).
Uber’s hand, of course, was forced by a Supreme Court ruling that has been tipped as a game-changer for the gig economy. Deliveroo has already warned investors that if it were forced to change its business model there was a risk of incurring “significant additional expense” or even exiting some markets.
Some investors are turned off. “There is a big question about whether that business is a sustainable one and therefore whether they can be profitable enough while being able to grow. It is not just the employee rights concerns but the governance ones as well,” said Andrew Millington, head of UK equities at Aberdeen Standard Investments, part of the FTSE 100-listed asset manager.
>>> Up
* CA Immo Raised to Buy at SRC Research; PT 41 euros
* CA Immo Raised to Buy at SRC Research; PT 41 euros
* Celyad Oncology SA ADRs Cut to Hold at JonesTrading
* Schibsted Raised to Overweight at JPMorgan; PT 432 kroner
>>> Down
>>> Down
* Danone Cut to Neutral at Credit Suisse; PT 62 euros
* Kuehne + Nagel Cut to Reduce at Baader Helvea
* Kuehne + Nagel Cut to Reduce at Baader Helvea
* u-blox Cut to Reduce at Baader Helvea; PT 63 Swiss francs
>>> Initiation
* Apple Reinstated Outperform at Exane; PT $150
>>> Initiation
* Apple Reinstated Outperform at Exane; PT $150
* EFG International Rated New Outperform at Mediobanca SpA
* Poste Italiane Rated New Overweight at Barclays; PT 14 euros
* Richemont Rated New Hold at Investec; PT 95 Swiss francs
* Vontobel Rated New Neutral at Mediobanca SpA
>>> Call
>>> Call
After Hours Summary: Banks rise as Fed says limits on dividends and buybacks will end for many on Jun 30; TLS +17.9%, PRGS +2.6% higher on earnings; SAIC -11.4%, BLNK -4.6% lower on earningsAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: AWH +24.9% (also announces agreement to evaluate miRNA technology in combination with current AWH technologies), TLS +17.9%, PRGS +2.6%, CEQP +2.6% (increases FY21 adj. EBITDA to $575-625 mln; also executes series of agreements to acquire 11.5 mln shares; also announces 6 mln share private placement)
Companies trading higher in after hours in reaction to news: NEXT +20% (signs term sheet for CO2 transportation and storage with OXY), ROOT +8.4% (Citron issues positive report), SRNE +0.9% (announces updated results of Phase 1b study of COVI-MSC), BFT +0.6% (receives stockholder approval for proposed combination with Paysafe), CLDT +0.5% (sells 10.3% interest in Innkeepers JV), HBAN +0.4% (TCF and HBAN receive shareholder approval for proposed merger), DIS +0.4% (S&P outlook revised to stable from negative on vaccination progress), GILD +0.3% (EMA validates MAA for sacituzumab govitecan-hziy as treatment for metastatic triple-negative breast cancer)
Banks rise as Fed says temporary limits on bank dividends and buybacks will end for most banks after Jun 30: C +1.2%, WFC +1%, USB +0.8%, JPM +0.7%, BAC +0.7%, TFC +0.1%.
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: SAIC -11.4%, GAN -7.4%, BLNK -4.6%, OXM -0.3%
Companies trading lower in after hours in reaction to news: VUZI -14.5% (stock offering), ABR -3.3% (stock offering), TU -2.8% (announces C$1.3 bln equity offering on a bought deal basis), STLA -1.4% (considering whether to close one of two production lines at its Melfi car plant, according to Reuters), F -0.2% (to idle production of F-150 truck at Michigan plant through Sunday, according to Reuters), NLY -0.1% (to sell Commercial Real Estate business for $2.33 bln), VAR -0.1% (announces new investment in Israeli microcatheter developer Bend It Technologies), LW -0.1% (announces $250 mln investment to expand french fry processing capacity in China)