NYT : Blade Takes Off for the Stock Markets

Blade Takes Off for the Stock Markets
The private helicopter taxi company is merging with a blank-check fund.

Blade lands a SPAC
Blade Urban Air Mobility, the New York-based helicopter taxi service, has struck a deal to go public via a sale to a blank-check company backed by KSL Capital that values the company at about $825 million. The deal includes $400 million in proceeds, which includes a $125 million infusion along with the cash in the SPAC. Pending the deal’s closure, it will trade on the Nasdaq under the ticker “BLDE.”

An upscale way to get from here to there. Blade was founded in 2014 by Rob Wiesenthal, the former Warner Music and Sony exec, catering to wealthy Manhattanites seeking a quicker way to get to the Hamptons, Nantucket and other popular summer destinations. (The 40-minute flight from Manhattan to East Hampton currently runs $795 per seat.) Blade has since expanded into other modes of transit, like seaplanes and private jet flights from Westchester to Aspen, Miami and further afield. During the pandemic, Blade has added other perks, including on-site Covid testing before check-in.

A flying E.V. SPACs have bet big on electric vehicles this year, looking to catch a winner in the shift to a low-carbon economy. There is an E.V. aspect to the Blade deal, too. Some of the proceeds in the merger will go toward its adoption of electric aircraft. The nascent technology is still working toward regulatory approval, with the U.S. military and Airbus, a Blade investor, among those developing prototypes.

KSL, the private equity firm behind the SPAC, also owns the airport services group Ross Aviation, which it says will partner with Blade on some routes, providing maintenance and — eventually — electric charging stations.

An elite investor base. Blade’s investors reflect the sort of clientele it attracts, including IAC’s Barry Diller, iHeartMedia’s Robert Pittman and Discovery’s David Zaslav. They’re joined in the deal by the venture investor Chamath Palihapitiya, the media mogul David Geffen, HG Vora Capital and KSL. Mr. Palihapitiya’s involvement is notable, given that he typically runs his own SPACs as the sponsor backing the deal.

>>> Europe : Brokers Upgrades & Downgrades - 15th of December 2020 V2(+)

>>> Up
* Aker Solutions Raised to Overweight at JPMorgan; PT 21 kroner
* Aker Solutions Raised to Outperform at Credit Suisse (+)
* ArcelorMittal Raised to Buy at SocGen; PT 32.50 euros
* Chemring Group Raised to Buy at Panmure Gordon; PT 302 pence (+)
* CNH Industrial Raised to Buy at Deutsche Bank; PT $16
* IHG LN PT Raised to 5,600 pence at Deutsche Bank
* ITM Power Raised to Buy at Panmure Gordon; PT 822 pence
* Melia Hotels Raised to Buy at Deutsche Bank; PT 7.20 euros
* Redrow Raised to Overweight at JPMorgan; PT 600 pence

>>> Down
* Ascential Cut to Hold at Peel Hunt
* Berkeley Cut to Neutral at JPMorgan; PT 4,900 pence
* BW LPG Cut to Sell at Cleaves Securities; PT 52 kroner
* Calisen Cut to Neutral at Credit Suisse; PT 261 pence (+)
* Drone Volt SACA Cut to Add at AlphaValue
* Panostaja Cut to Reduce at Inderes; PT 80 euro cents (+)
* Recipharm Cut to Hold at Handelsbanken; PT 220 kronor
* Recipharm Cut to Hold at SEB Equities; PT 220 kronor
* SMCP Cut to Hold at Jefferies; PT 5.75 euros
* Suedzucker PT Cut to 9.60 euros from 11.60 euros at Barclays (+)
* Swedbank Cut to Equal-Weight at Morgan Stanley; PT 176 kronor
* Wood Cut to Neutral at Credit Suisse; PT 350 pence (+)

>>> Initiation
* CNH Industrial Rated New Market Perform at Oppenheimer
* Euskaltel Rated New Buy at Citi
* Orkla Rated New Equal-Weight at Morgan Stanley; PT 90 kroner
* Ringmetall Rated New Buy at Hauck & Aufhaeuser; PT 3.70 euros (+)
* Rua Life Sciences PLC Rated New Buy at Cenkos Securities
* Telefonica Rated New Neutral at Citi

>>> Call
* Ceconomy’s New Shareholder Structure ‘Great News’: Baader
* JPMorgan, Citi Prefer U.K. Homebuilder Value Plays in 2021 (+)
* Orkla Transformation to Take Time, Equal-Weight: Morgan Stanley
* SMCP Online Discounting Hurts Brand, Margins, Jefferies Says-
* Spanish Telecoms Outlook Mixed, Consolidation Is Likely: Citi
* Swedbank Fairly Valued, Cost Control in Focus: Morgan Stanley

>>> Stoxx 600 Pre-Market Indications

  • Inditex (IXD1 TH) +1.1%
  • Glaxo (GS7 TH) +0.8%
  • BP (BPE5 TH) +0.8%
  • VW (VOW3 TH) +0.5%
    • VW Soothes Tensions by Backing CEO, Compromising With Unions
  • Signify (G14 TH) -0.9%
  • Cancom (COK TH) -0.9%
  • Vestas (VWS TH) -0.9%
  • Total SE (TOTB TH) -1.1%
  • Carnival Plc (POH1 TH) -1.2%
  • Hexagon (HXGB TH) -1.5%
  • AstraZeneca (ZEG TH) -1.6%
  • NEL (D7G TH) -1.9%
  • Symrise (SY1 TH) -2.5%
    • Symrise Production Hit by Hacker Attack, Handelsblatt Reports
  • Rolls-Royce (RRU TH) -3.3%
    • Rolls-Royce Cut to Sell at Panmure Gordon; PT 52 pence

>>> TradeGate Pre-Market Indications

DAX:
  • VW (VOW3 TH) +0.8%
    • VW Soothes Tensions by Backing CEO, Compromising With Unions (1)
  • Munich Re (MUV2 TH) +0.7%
    • Munich Re Raised to Buy at HSBC; PT 275 euros
  • Infineon (IFX TH) -0.5%
  • Deutsche Bank (DBK TH) -0.6%
MDAX:
  • Metro AG (B4B TH) +3.2%
    • Metro Sales, Profit To Fall as Corona Keeps Clients Locked Down
    • Metro’s Outlook Muted as Pandemic Prevents Quick Fixes: Analysts
  • Telefonica Deutschland (O2D TH) +0.7%
  • Symrise (SY1 TH) -2.6%
    • Symrise Production Hit by Hacker Attack, Handelsblatt Reports
SDAX:
  • Ceconomy (CEC TH) +6.8%
    • Ceconomy Sees 2021 Adjusted Ebit EU320M to EU370M
  • Global Fashion Group (GFG TH) +3%
    • Stock gained 12% Monday
  • CropEnergies (CE2 TH) +2.1%
  • Borussia Dortmund (BVB TH) +2.1%
  • Deutz (DEZ TH) +1.3%
  • Encavis (CAP TH) -0.8%

>>> What to look at today - 15th of December 2020

Asian stocks retreated with European futures Tuesday after a mixed Wall Street session, amid caution over economic risks from virus-related curbs and ongoing U.S. fiscal stimulus talks. The dollar steadied.
A gauge of Asian stocks was set for its worst drop this month as shares fell in South Korea, China and Japan, where the government suspended its nationwide travel campaign amid record coronavirus cases. Australian coal stocks slid on reports China formally banned imports. S&P 500 contracts edged higher after the gauge capped its longest slide since September to trade about 1.5% below its Dec. 8 record. Oil fell and Treasury yields were little changed.
US After Hours  PQG +9% after completing sale of Performance Materials business and announcing special cash dividend; MESO -5% falls on DREAM-HF Phase 3 trial results

Nikkei -0.17% Hang Seng -0.61% CSI +0.22% Shanghai -0.04% Shenzen +0.38%

Eur$ 1.2148 CNH 6.5406 CNY6.5551 JPY 104.06 GBP 1.3344 CHF 0.8875 RUB 73.5372 TRY 7.8458 WTI$46.66 -0.70%

S&P +0.14% Nasdaq +0.03% EuroStoxx -0.31% FTSE -0.46% Dax -0.23% SMI -0.50%

Macro :
- SocGen Analyst Who Saw Stock Swoon and Rally in 2020 Exits Firm

Keep an eye on :
- AIR FP : Airbus CEO Warns of No-Deal Brexit Impact on U.K. Investment
- ATL IM : Italy’s Cassa Depositi Plans Autostrade Bid by End January
- ANTO LN : Centinela Talks Extended in Bid to Avert Strike at Mine in Chile
- BBVA SM : BBVA Sells Majority Stake in BBVA Seguros Generales to Allianz
- BIM FP : BioMerieux Sees FY Adjusted Operating Profit About EU600M
- CEC GY : Ceconomy Sees 2021 Adjusted Ebit EU320M to EU370M
- CEC GY : Ceconomy to Buy Convergenta’s MediaMarktSaturn Stake
- CGG FP : PGS, TGS, CGG Partnership for Shared MultiClient Data Offerings
- CSGN SW : Credit Suisse: 4Q Investment Bank Revenues Ahead of 4Q 2019 (1)
- ERF FP : Eurofins Scientific Boosts FY Adjusted Ebitda Forecast
- EUCAR FP : Europcar Says Company to File Chapter 15 Bankruptcy ‘Shortly’
- HUBN SW : Huber+Suhner Suffers Cyber Attack, AWP Reports (Dec. 14)
- B4B GY : Metro Sales, Profit To Fall as Corona Keeps Clients Locked Down
- PGS NO : PGS, TGS, CGG Partnership for Shared MultiClient Data Offerings
- PIRC IM : *PIRELLI CONVERT BOOKS COVERED THROUGH MIDPOINT OF RANGE: TERMS
- ROG SW : FDA Approves Genentech’s Ocrevus Shorter 2-Hour Infusion
- SAB SM : *SABADELL MULLS ALLIANCE WITH OTHER EUROPEAN BANK: CONFIDENCIAL
- SPM IM : Italy High Court Rejects Prosecutor Appeal on Saipem
- SAGA NO : Saga Pure Offering Prices 35m Shares at NOK2.10/Share
- SAN FP : Sanofi Commits $25m of Support to WHO for Tropical Diseases
- SY1 GY : Symrise Production Hit by Hacker Attack, Handelsblatt Reports
- TALK LN : TalkTalk Nears Agreement on Toscafund Takeover Deal: Sky
- TEFSM : Liberty Said to Mull Purchase of Telefonica Latin America Units
- UMI BB : Umicore Raises Year Adjusted Ebit View
- VOW GY : VW Soothes Tensions by Backing CEO, Compromising With Unions (1)
- WLN FP : Worldline Buys 51% in ANZ Commercial Acquiring Unit for ~A$485M

>>> Europe : Brokers Upgrades & Downgrades - 15th of December 2020

>>> Up
* Aker Solutions Raised to Overweight at JPMorgan; PT 21 kroner
* ArcelorMittal Raised to Buy at SocGen; PT 32.50 euros
* CNH Industrial Raised to Buy at Deutsche Bank; PT $16
* IHG LN PT Raised to 5,600 pence at Deutsche Bank
* ITM Power Raised to Buy at Panmure Gordon; PT 822 pence
* Melia Hotels Raised to Buy at Deutsche Bank; PT 7.20 euros
* Redrow Raised to Overweight at JPMorgan; PT 600 pence

>>> Down
* Ascential Cut to Hold at Peel Hunt
* Berkeley Cut to Neutral at JPMorgan; PT 4,900 pence
* BW LPG Cut to Sell at Cleaves Securities; PT 52 kroner
* Drone Volt SACA Cut to Add at AlphaValue
* Recipharm Cut to Hold at Handelsbanken; PT 220 kronor
* Recipharm Cut to Hold at SEB Equities; PT 220 kronor
* SMCP Cut to Hold at Jefferies; PT 5.75 euros
* Swedbank Cut to Equal-Weight at Morgan Stanley; PT 176 kronor

>>> Initiation
* CNH Industrial Rated New Market Perform at Oppenheimer
* Euskaltel Rated New Buy at Citi
* Orkla Rated New Equal-Weight at Morgan Stanley; PT 90 kroner
* Rua Life Sciences PLC Rated New Buy at Cenkos Securities
* Telefonica Rated New Neutral at Citi

>>> Call
* Ceconomy’s New Shareholder Structure ‘Great News’: Baader
* Orkla Transformation to Take Time, Equal-Weight: Morgan Stanley
* SMCP Online Discounting Hurts Brand, Margins, Jefferies Says-
* Spanish Telecoms Outlook Mixed, Consolidation Is Likely: Citi
* Swedbank Fairly Valued, Cost Control in Focus: Morgan Stanley

>>> US Close Dow -0.62% S&P -0.44% Nasdaq +0.50% Russell +0.11%

Closing Stock Market Summary

The S&P 500 started Monday's session with a 0.9% gain as the U.S. began distributing the first COVID-19 vaccines to the public, but an orderly retreat ensued that left the benchmark index down 0.4% for the session. The Dow Jones Industrial Average (-0.6%) joined the benchmark index in the red after hitting an all-time high in early action.

The Nasdaq Composite (+0.5%) and Russell 2000 (+0.1%), however, ended the session in positive territory.

The vaccine rollout was officially authorized by the FDA after it approved the vaccine from Pfizer (PFE 39.21, -1.91, -4.6%) and BioNTech (BNTX 108.27, -19.03, -15.0%) for emergency use in patients ages 16 or older. The decision was widely expected, though, and the sharp declines in PFE and BNTX shares were indicative of the news being priced in already.   

Within minutes after the open, the S&P 500 energy sector (-3.5%) and last week's hot IPO companies succumbed to profit-taking interest, sapping some enthusiasm from this market. The financials (-1.2%), materials (-1.3%), and industrials (-1.3%) sectors also lagged, while the consumer discretionary (+0.5%) and information technology (+0.4%) sectors closed higher. 

One reported headwind for cyclical stocks was an acknowledgement from NYC Mayor Bill De Blasio that there's still a possibility of a full shutdown due to the rise in coronavirus cases in the city. Naturally, growth stocks outperformed, including Tesla (TSLA 639.83, +29.84, +4.5%) ahead of its reconstitution into the S&P 500 after Friday's close. 

In stimulus news, reports indicated that the $908 billion bipartisan bill was going to be split into two bills: one bill for $748 billion that excludes state and local aid and liability protection and a second bill for $160 billion that includes both contents. House Speaker Pelosi said both sides remained in negotiations. 

Separately, today was a busy day for M&A news, and none was larger than the $39 billion cash-and-stock deal involving Alexion Pharma (ALXN 156.31, +35.33, +29.2%) and AstraZeneca (AZN 50.03, -4.24, -7.8%). Alexion agreed to be acquired by AstraZeneca for $175.00 per share or a 45% premium to Friday's closing price for ALXN.  

U.S. Treasuries finished little changed after starting the session in the red, as investors returned to bonds amid the lackluster intraday price action in the major indices. The 2-yr yield was flat at 0.11%, and the 10-yr yield was flat at 0.89%. The U.S. Dollar Index declined 0.3% to 90.69. WTI crude increased 0.9%, or $0.42, to $47.00/bbl.

Investors did not receive any economic data on Monday. Looking ahead to Tuesday, investors will receive Industrial Production and Capacity Utilization for November, the Empire State Manufacturing Index for December, Export and Import Prices for November, and Net Long-Term TIC Flows for October. 

  • Nasdaq Composite +38.6% YTD
  • Russell 2000 +14.7% YTD
  • S&P 500 +12.9% YTD
  • Dow Jones Industrial Average +4.6% YTD

>>> After Hours Summary: PQG +9% after completing sale of Performance Materials

After Hours Summary: PQG +9% after completing sale of Performance Materials business and announcing special cash dividend; MESO -5% falls on DREAM-HF Phase 3 trial results

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: N/A

Companies trading higher in after hours in reaction to news: PQG +9.4% (completed sale of Performance Materials business for $650 mln; declared $1.80/share special cash dividend), RIDE +5.80%, CWH +3.6% (CWH CEO tweets that CWH and RIDE will make special announcement at joint press conference tomorrow), IVAC +3.1% (received $5 mln EVA digital night-vision sensor contract), ARVN +2.2% (continued strength; announced $250.0 mln common stock offering), RC +2.2% (raised dividend), IIPR +2% (raised dividend), BSX +1.1% (authorized $1.0 bin common stock repurchase program)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: N/A

Companies trading lower in after hours in reaction to news: MESO -5.3% (reported top-line results for Phase 3 trial of rexlemestrocel-L in advanced chronic heart failure), EAF -5.2% (announced secondary offering of 7.0 mln common shares), OCUL -3% (announced $75.0 mln public offering of common stock), ZIOP -1.3% (CFO announced intention to depart, effective December 31), MTN -1.1% (announced convertible notes offering)