Gapping up
In reaction to earnings/guidance:
- FIVN +7.9%, AL +7.4%, ZI +6.4%, BCO +5.1%, FI +4.9%, MRO +3.3%, IR +3.3%, M +3.1%, LGIH +2.4%, ARNC +2.3%, RSG +2.2%, BCC +2.2%, NXST +1.6%, EVER +1.5%, PRIM +1.4%, WMB +1.4%, PLOW +1.4%, CDNS +1.2%, BNS +1.2%, GFL +1.1%, CBRE +1.1%, EXR +0.9%
Other news:
- ONCY +14.5% (reports preclinical data demonstrating the synergistic anti-cancer activity of pelareorep combined with car t cell therapy in solid tumors)
- PLX +10.4% (Protalix BioTherapeutics and Chiesi Global Rare Diseases announce "positive" topline results from the BRIGHT Phase III clinical trial evaluating pegunigalsidase alfa, 2 mg/kg, administered every four weeks, for the potential treatment of Fabry disease)
- AMC +6.1% (to reopen all 13 of its NYC theatres on March 5)
- PSN +4.2% (wins contract with the US Postal Service worth up to $600 mln)
- UFPI +2.5% (to acquire operating assets of Spartanburg Forest Products)
- SASR +1.3% (files for mixed securities shelf offering)
- BIP +1.2% (KMI and BIP announce minority interest sale in Natural Gas Pipeline)
Analyst comments:
- SNSS +16.6% (upgraded to Outperform from Perform at Oppenheimer)
- TMST +6.3% (upgraded to Overweight from Sector Weight at KeyBanc Capital Markets)
- KOS +5.3% (upgraded to Buy from Neutral at Goldman)
- RSG +2.2% (upgraded to Overweight from Neutral at JP Morgan)
- GTES +1.9% (upgraded to Outperform from Sector Perform at RBC Capital Mkts)
Mitsubishi Motors set to reverse move to withdraw from Europe
Japanese group’s expected U-turn a sign of fresh rifts in alliance with Renault and Nissan
Mitsubishi Motors is set to reverse its decision to withdraw from Europe and build cars in France after months of pressure from Renault and Nissan, in a sign of fresh rifts within the alliance.
Mitsubishi will formally consider the move at a board meeting on Thursday, according to three people with direct knowledge of the matter, following months of fractious discussions with its alliance partners.
A framework agreement between the three carmakers was reached on Monday during an alliance meeting, two of the people said. They added that the deal may still fall apart.
The decision to have Renault produce Mitsubishi cars at its French factories in a manufacturing deal, if finalised, would force the Japanese company to justify the U-turn — and face down accusations it yielded to a Renault campaign to protect French jobs.
The coalition between the three car groups is held together by Renault’s 43 per cent stake in Nissan, which owns 34 per cent of Mitsubishi, the smallest of the companies.
The French government’s 15 per cent stake in Renault has fed longstanding fears at the two Japanese carmakers that alliance strategy would be heavily influenced by French industrial politics.
In July Mitsubishi announced plans to in effect pull out of its lossmaking operations in Europe by cancelling model launches and running down its current line-up. This would lead to the end of all car sales in European markets as early as this year.
Following the announcement, some dealerships have already sold operations in preparation for Mitsubishi’s exit, while others are preparing to become repair garages for the brand instead.
An agreement to build Mitsubishi cars in France would be held up internally as a sign the Renault-Nissan-Mitsubishi Alliance was working under new management teams installed after the arrest and ousting of former boss Carlos Ghosn in 2018.
But people within both Mitsubishi and Nissan have expressed concern about such a deal that would mean Renault building Mitsubishi cars — increasing work for its French plants and providing a political boost in the country, where it is cutting jobs.
Executives were particularly worried about a potential repetition of Renault’s 2001 decision to move the Nissan Micra from the Japanese group’s Sunderland plant to its own underperforming Flins factory outside Paris. This was seen as a political move by the French group to shore up union support.
Mitsubishi said there was no change in its policy to halt development of new models in Europe.
Nissan and Renault said they would not comment “on speculation”. Renault added the alliance always “aims to enhance competitiveness and enable more effective resource-sharing for the benefit of all three companies” and that there “are always ongoing discussions between the three companies”.
Last month, Renault chief executive Luca de Meo suggested in an interview with the Financial Times that a deal could be done, saying: “We have space in our plants; we have platforms.”
De Meo also suggested that Renault could end up building more cars for Nissan in its French plants, something that was resisted by Nissan, according to people familiar with the discussions. That led to pressure being applied to Mitsubishi by both sides of the alliance, the people said.
Before last year announcing its withdrawal, Mitsubishi sold just 120,000 cars in Europe in 2019, giving it less than 1 per cent market share.
The tentative agreement reached on Monday is the first big deal between de Meo, who joined Renault as CEO last summer, and the heads of Nissan and Mitsubishi, and a test of the relationship between the three sides.
Nissan and Renault are focusing on turning round their own businesses as well as repairing the alliance, which came near collapse in the wake of the turmoil that followed Ghosn’s ouster.
De Meo announced a scheme to save €3bn by cutting factory capacity as part of a company overhaul last month, while Nissan aims to save ¥300bn ($2.85bn) through its own turnround plan.
Early premarket gappers
- Gapping up:
- FIVN +10.3%, EVER +8.5%, ZI +6.1%, CLDX +4.4%, PSN +4.2%, RVNC +3.8%, IR +3.3%, RSG +1.7%, PRIM +1.4%, SASR +1.3%, BIP +1.2%, GFL +1.1%, EXR +0.9%, MRO +0.8%
- Gapping down:
- CCIV -34.9%, PAVM -18.9%, NLS -15.2%, API -14.1%, REAL -12.6%, BIGC -7%, EXPR -6.5%, TTCF -6.5%, SHOP -5.9%, DBX -4.9%, WTRH -4.9%, UIS -4.6%, PANW -4.4%, TREX -4.2%, FRPT -4.2%, GNMK -4.1%, DDS -4.1%, GDOT -4%, MRNA -3.8%, CCL -3.4%, RIG -2.8%, HD -2.7%, OXY -2.6%, CDNS -2.6%, NHI -1.8%, JBT -1.8%, HSBC -1.7%, QQQ -1.6%, AMC -1.5%, VNOM -1.5%, BWXT -1.5%, TSN -1.3%, O -1%, IWM -0.8%, LMT -0.7%, PHG -0.7%, FANG -0.7%, OKE -0.7%, SPY -0.5%
>>> Up
* Adidas Raised to Neutral at Credit Suisse; PT 295 euros
* Credit Suisse ADRs Raised to Overweight at Barclays; PT $14
* Deutsche Bank Raised to Equal-Weight at Barclays; PT $9.50
* Dometic Raised to Buy at Handelsbanken; PT 135 kronor (+)
* Infineon Raised to Outperform at Oddo BHF; PT 44 euros (+)
* Kuehne + Nagel Raised to Outperform at Bernstein
* Lonza Raised to Overweight at JPMorgan; PT 680 Swiss francs
* MBB SE Cut to Hold at Commerzbank; PT 155 euros
* Metall Zug Raised to Buy at Stifel; PT 2,100 Swiss francs
* MTU Aero Cut to Hold at Berenberg; PT 205 euros (+)
* NatWest Raised to Neutral at Exane; PT 190 pence
* NatWest Raised to Reduce at AlphaValue
* Royal Unibrew Raised to Hold at Handelsbanken; PT 675 kroner (+)
* Salzgitter Raised to Buy at Baader Helvea; PT 35 euros
* Sanne Group Raised to Buy at HSBC; PT 685 pence
* Volue Raised to Buy at Arctic Securities; PT 80 kroner
>>> Down
>>> Down
* Heineken Cut to Underperform at RBC; PT 75 euros
* Sioen Cut to Hold at ING; PT 27 euros
* Tele2 Cut to Equal-Weight at Morgan Stanley; PT 125 kronor
* V-Zug Holding Cut to Hold at Stifel; PT 95 Swiss francs
>>> Initiation
* Tele2 Cut to Equal-Weight at Morgan Stanley; PT 125 kronor
* V-Zug Holding Cut to Hold at Stifel; PT 95 Swiss francs
>>> Initiation
* Energean PLC Resumed Overweight at Morgan Stanley
* Energean PLC Reinstated Buy at Panmure Gordon; PT 1,102 pence
* Gateley Rated New Add at Peel Hunt; PT 190 pence
* ITM Power Rated New Outperform at Davy
* Nostrum Oil & Gas Reinstated Sell at Panmure Gordon; PT 1 penny
* Proximar Seafood Rated New Buy at Pareto Securities (+)
* Smurfit Kappa Rated New Overweight at JPMorgan; PT 47.95 euros
* Smurfit Kappa Rated New Overweight at JPMorgan; PT 47.95 euros
* Varta Rated New Hold at SRH AlsterResearch; PT 130 euros
* Volution Rated New Buy at Shore Capital; PT 395 pence (+)
>>> Call
>>> Call
* Covestro Outlook for Fiscal 2021 ‘Conservative,’ Berenberg Says
* Credit Suisse and Deutsche Bank Raised at Barclays on SPAC Boost
* Credit Suisse and Deutsche Bank Raised at Barclays on SPAC Boost
* HeidelbergCement Finishes Year Strongly, Outlook Positive: Citi (+)
* Heineken’s Outlook Is Realistic, Not Conservative, RBC Says
* NatWest’s Earnings Downgrade Risk Has Fallen, Deutsche Bank Says (+)
* Salzgitter Raised to Buy at Baader on Demand Momentum, Margins
* Tele2 Valuation Tougher to Justify, Cut at Morgan Stanley
- Tomra (TMR TH) +2.2%
- TOMRA 4Q Revenue Beats Estimates
- Reckitt (3RB TH) +2.1%
- NEL (D7G TH) +2.1%
- Carnival Plc (POH1 TH) +2%
- Glaxo (GS7 TH) +1.9%
- Verbund (OEWA TH) +1.2%
- IAG (INR TH) +1%
- Unilever (UNVB TH) +1%
- Telefonica Deutschland (O2D TH) -1%
-
AMS (DQW1 TH) -1%
- PRESS RELEASE: ams AG / Domination and Profit and Loss Transfer Agreement with OSRAM Licht AG expected to be registered and take
- Aegon (AEND TH) -1%
- ProSieben (PSM TH) -1%
-
Covestro (1COV TH) -1.1%
- Covestro FY Dividend Per Share Beats Estimates
- Salmar (JEP TH) -1.2%
- Varta (VAR1 TH) -1.4%
- HelloFresh (HFG TH) -2.1%
-
Adyen (1N8 TH) -2.9%
- Adyen Offering by Holder Prices at EU2.08k/Share: Terms
-
Rational (RAA TH) -3.7%
- Rational AG Sees 2021 Ebit Margin at Prior Year Level
WeWork Co-Founder Adam Neumann Nears Settlement With SoftBank
SoftBank could spend roughly $1.5 billion to buy the shares of early WeWork investors and employees
WeWork co-founder and former Chief Executive Adam Neumann is in advanced talks to settle a high-profile legal fight with SoftBank Group Corp. 9984 1.74% by agreeing to a nearly $500 million cut in his payout from the shared-office-space company’s new owner, a move that would help clear the way for WeWork’s second attempt at a public listing.
According to terms being discussed, SoftBank would spend roughly $1.5 billion to buy the shares of early WeWork investors and employees, including nearly $500 million to purchase shares from Mr. Neumann—in both cases about half of what it originally agreed to, according to people familiar with the talks.
SoftBank took a majority stake in WeWork after its attempted initial public offering collapsed in 2019 when public investors balked at buying the money-losing company’s shares and at Mr. Neumann’s conflicts of interest and erratic behavior. Mr. Neumann stepped down under pressure as CEO in the wake of the IPO debacle.
The negotiations have been rocky at times and there is no guarantee they will produce an agreement, but if there is one, it could be finalized in the coming days, the people said.
Should there be a settlement, it could be followed by another deal as WeWork is also in talks to combine with a special-purpose acquisition company, a move that would finally convert it into a public company.
WeWork has been in talks with a SPAC called BowX Acquisition Corp. BOWX -1.09% and the two sides could reach a deal in the coming weeks, the people said. There is no guarantee WeWork will reach a deal with BowX, and other financing and SPAC options are still on the table, the people cautioned.
The Wall Street Journal had previously reported that WeWork was in talks with BowX, which come amid a wave of SPAC deals and a booming IPO market. A deal could value WeWork at about $10 billion, people familiar with the matter have said.
The agreement with Mr. Neumann would put an end to a fight that has its roots in the October 2019 bailout of WeWork by SoftBank, soon after the IPO fell apart. The Japanese investing giant agreed to buy $3 billion of shares from Mr. Neumann and others as part of a deal that also pumped money into the company when it was weeks from running out of cash. The agreement included a four-year, $185 million consulting fee for Mr. Neumann, an enormous golden parachute that was criticized at the time.
Last April, as a deadline approached for SoftBank to complete the share purchase, the firm reneged, saying certain conditions of the payment hadn’t been met, including the restructuring of a China subsidiary. Mr. Neumann and other early WeWork investors each filed suit separately, starting a legal skirmish that was set to go to trial in early March. SoftBank discontinued payments on Mr. Neumann’s consulting fee amid the legal fight.
WeWork has been a black eye for SoftBank, as most of the $10 billion it invested vanished, at least on paper. Besides cutting its bill to bail out WeWork, resolving the dispute would help pave the way for a listing that could inject new cash into the company. For Mr. Neumann and the other investors, it would enable them to avoid the risk of getting nothing if SoftBank prevailed at trial.
SoftBank’s decision to withhold the $3 billion payment came as the coronavirus pandemic decreased the need for office space and put a major dent in WeWork’s business. The company’s value shrank to $2.9 billion, SoftBank told investors in an earnings presentation in May, from $47 billion at its peak. WeWork, which rents office space on long-term leases and then subleases it on shorter terms after completing hip renovations, cut thousands of jobs and withdrew from dozens of buildings around the world.
The company is still awash in red ink, though far less than before.
Under current Chief Executive Sandeep Mathrani, who joined in early 2020, WeWork has cut its cash burn from a high of $1.4 billion in the fourth quarter of 2019 to $517 million in the third quarter of 2020.
Now, its executives are betting that WeWork’s flexible offering, which allows companies to rent monthly or yearly instead of signing, say, 10-year leases, will be a hit among those that want to rethink their office space post-pandemic. Mr. Mathrani said recently he believes the company will turn a profit in the fourth quarter of 2021.
U.S. equity futures and Asian stocks advanced Tuesday as investors focused on expectations for faster growth, and bond yields and commodities stabilized after their run-up on inflation concerns. The dollar dipped.
Stocks outperformed in Hong Kong and Australia. Japan is shut for a holiday. S&P 500 contracts climbed after fluctuating earlier. The index fell for a fifth day, its longest losing streak in a year. The Nasdaq 100 tumbled more than 2% as investors questioned the appeal of more expensive equities.
The Bloomberg Commodity Spot Index, which tracks price movements for 23 raw materials, earlier rose to its highest since March 2013. Brent oil consolidated above $65 a barrel as Goldman Sachs Group Inc. predicted prices could top $70 in coming months. WTI crude rose toward $63 a barrel.
Bonds steadied after a key part of the Treasury curve -- the gap between 5- and 30-year yields -- touched the highest level in more than six years. Cash Treasuries won’t trade in Asia because of the Japan holiday.
US After Hours EVER +11.7%, ZI +11.7%, FIVN +9.4%, CDNS +5.9% up big on earnings; NLS -13%, API -9.7%, REAL -5.6%, GDOT -4.1%, TREX -3.9% fall on earnings
Nikkei +0.46% Hang Seng +1.09% CSI -0.32% Shanghai -0.12% Shenzen -0.83%
Eur$ 1.2167 CNH 6.4627 CNY 6.4609 JPY 105.09 GBP 1.4060 CHF 0.8960 RUB 74.0993 TRY 7.0344 WTI 62.50+1.30% Gold 1,811.90+0.12% BTC 50,015 -2051
S&P +0.37% Nasdaq +0.48% EuroStoxx -0.03% FTSE +0.23% DAX +0.05% SMI -0.08%
Macro :
Macro :
- Ray Dalio Sees 5% of Top U.S. Stocks in Bubble Territory
- Elon Musk’s Bitcoin Tweet Hurts Tesla’s Own Bet in Currency (1)
- Johnson Says Pandemic End in Sight as He Plans U.K.’s Recovery
SPAC :
- Perella Weinberg SPAC Seeks $200 Million For Women-Led Business
- SPAC Mergers Spike to New Record Beneath Market Lull: ECM Watch
- Blank-Check Firm Backed by HelloFresh CEO Files for $300m IPO
- SPACs to Unicorns Have Germany Set for Big IPO Year: ECM Watch
Keep an eye on :
Keep an eye on :
- ABG SM : Abengoa Files Request for Voluntary Bankruptcy Proceeding
- ADP FP : ADP Will Avoid Large-Scale Acquisitions in Short-Term: CEO
- ADYEN NA : Adyen Pre-IPO Investor to Sell Shares Worth Up to $1.2 Billion
- ATL IM : Italy’s CDP Board to Discuss Autostrade Offer on Feb. 23
- BKT SM : *BANKINTER AIMS TO LIST LINEA DIRECTA BEFORE AGM IN APRIL: CEO
- BEFSA GY : Befesa FY Ebitda EU127.0M Vs. EU159.6M Y/y
- BEFB BB : Befimmo Buys Office Project in Louvain-a-Neuve for About EU27m
- BINV SS : BioInvent International Offering Prices at SEK50.36/Share
- CAI AV : Aggregate Said Close to Countering Starwood Bid for CA Immo
- CCL LN : Carnival to Sell $1 Billion in Shares, Capitalizing on Rebound
- CDR SM : *CODERE IN TALKS TO SELL STAKE IN ONLINE DIVISION: CONFIDENCIAL
- 1COV GY : *COVESTRO SEES FY EBITDA EU1.7B TO EU2.2B
- BN FP : Bluebell Suggests Schnepp to Replace Faber as Danone Chairman
- DHER GY : Delivery Hero Offering by Holders Prices at EU111.5/Share
- DIC GY : DIC Asset Launches Logistics Property Fund, Target Volume EU400M
- DBX US : Dropbox Converts Due 2026 Are Said Offered at Zero Fixed Coupon
- EZJ LN : EasyJet Says Travel Bookings Surge on Johnson Reopening Plan
- ZIL2 GY : ElringKlinger Prelim 4Q Adjusted Ebit EU24.7M
- ENG SM : Enagas FY Ebitda Misses Estimates
- ERICB SS : Ericsson Is Getting Ready to Face New U.S.-Backed Challengers
- FTK GY : FlatexDEGIRO Prelim FY Revenue EU261M
- FRE GY : Fresenius SE FY Adjusted Ebit Meets Estimates, Plans Cost Cuts
- FME GY : Fresenius Medical Care Sees Revenue Up, Net Income Down in 2021
- HEI GY : HeidelbergCement FY Revenue Meets Estimates
- NK FP : Imerys Performance Minerals Sets Temporary Shipping Surcharge
- INH GY : Indus Holding Prelim FY Revenue EU1.56B
- KBX GY : Knorr-Bremse Prelim FY Ebitda Margin Above 16.5% to 17.5%
- NDA SS : Nordea’s Main Investor Faces CMD Showdown as Elliott Seeks Exit
- NB2 GY : Bitcoin Mine Operator Is Said to Plot Dual Listing Via U.S. IPO
- PSPN SW : PSP Swiss FY Vacancy Rate 3% Vs. 3.50% Y/y
- RAA GY : Rational AG Sees 2021 Ebit Margin at Prior Year Level
- RAYB SS : Raysearch 4Q Orders SEK239.1M Vs. SEK138.5M Q/q
- G24 GY : Scout24 FY Oper Ebitda Beats Estimates
- SIGN SW : SIG Combibloc Sees 2021 Core Revenue Growth +4% to +6%
- 9984 JP : SoftBank May Seek WeWork Exit After Settling With Neumann: React
- 9984 JP : SoftBank May Seek WeWork Exit After Settling With Neumann: React
- FTI FP : TechnipFMC Unit FMC Wellhead Gets Petronas Carigali Contract
- TIT IM : Telecom Italia Confirms Agreement with DAZN on Soccer TV Rights
- TOM NO : TOMRA 4Q Revenue Beats Estimates
- VOW GY ; LG in Talks With Volkswagen, Vingroup on Smartphone Sector:DongA
- VOW GY : Volkswagen Considering Cooperation With SpaceX’s Starlink: WiWo
>>> Up
* Adidas Raised to Neutral at Credit Suisse; PT 295 euros
* Credit Suisse ADRs Raised to Overweight at Barclays; PT $14
* Deutsche Bank Raised to Equal-Weight at Barclays; PT $9.50
* Kuehne + Nagel Raised to Outperform at Bernstein
* Lonza Raised to Overweight at JPMorgan; PT 680 Swiss francs
* MBB SE Cut to Hold at Commerzbank; PT 155 euros
* Metall Zug Raised to Buy at Stifel; PT 2,100 Swiss francs
* NatWest Raised to Neutral at Exane; PT 190 pence
* NatWest Raised to Reduce at AlphaValue
* Salzgitter Raised to Buy at Baader Helvea; PT 35 euros
* Sanne Group Raised to Buy at HSBC; PT 685 pence
* Volue Raised to Buy at Arctic Securities; PT 80 kroner
>>> Down
>>> Down
* Heineken Cut to Underperform at RBC; PT 75 euros
* Sioen Cut to Hold at ING; PT 27 euros
* Tele2 Cut to Equal-Weight at Morgan Stanley; PT 125 kronor
* V-Zug Holding Cut to Hold at Stifel; PT 95 Swiss francs
>>> Initiation
* Tele2 Cut to Equal-Weight at Morgan Stanley; PT 125 kronor
* V-Zug Holding Cut to Hold at Stifel; PT 95 Swiss francs
>>> Initiation
* Energean PLC Resumed Overweight at Morgan Stanley
* Energean PLC Reinstated Buy at Panmure Gordon; PT 1,102 pence
* Gateley Rated New Add at Peel Hunt; PT 190 pence
* Nostrum Oil & Gas Reinstated Sell at Panmure Gordon; PT 1 penny
* Smurfit Kappa Rated New Overweight at JPMorgan; PT 47.95 euros
* Smurfit Kappa Rated New Overweight at JPMorgan; PT 47.95 euros
* Varta Rated New Hold at SRH AlsterResearch; PT 130 euros
>>> Call
* Credit Suisse and Deutsche Bank Raised at Barclays on SPAC Boost
>>> Call
* Credit Suisse and Deutsche Bank Raised at Barclays on SPAC Boost
* Heineken’s Outlook Is Realistic, Not Conservative, RBC Says
* Salzgitter Raised to Buy at Baader on Demand Momentum, Margins
* Tele2 Valuation Tougher to Justify, Cut at Morgan Stanley