WSJ : Owner of Bath & Body Works, Victoria’s Secret Gets Pandemic Lift

Owner of Bath & Body Works, Victoria’s Secret Gets Pandemic Lift
L Brands posts a profit as company’s total sales rise 14%, although lingerie brand continues to slump

Bath & Body Works posted a 55% jump in quarterly sales as the coronavirus fueled demand for soap and hand sanitizer, helping its parent company offset another quarter of declining sales at its Victoria’s Secret lingerie brand.

L Brands Inc., LB -5.19% which owns both chains, said Wednesday it swung to a profit and its overall sales rose 14% in the quarter ended Oct. 31. In August, L Brands said it would close 250 Victoria’s Secret stores and cut 15% of its corporate jobs as it prepares to separate the two brands.

Shares of L Brands jumped 15% in after-hours trading after the results exceeded Wall Street’s expectations.

Personal-hygiene products such as hand sanitizers and soaps boosted Bath & Body Works sales to $1.7 billion, up about $600 million from a year earlier. Executives said they were able to pull back on promotions given the strong demand both in physical stores and online.

Victoria’s Secret had higher sales in sleepwear and loungewear as more people are “nesting” at home, executives said, but its total sales fell 14% to $1.35 billion. Declining store sales offset e-commerce and catalog gains for the brand. The women’s catalog brand, once the staple of beauty and lingerie fashion, has experienced declining sales for years.

Executives are trying to turn around Victoria’s Secret after a plan to sell a controlling stake to private-equity firm Sycamore Partners collapsed this year. The deal was scrapped after Sycamore claimed that furloughs and store closures related to the Covid-19 pandemic violated the terms of the deal.

After the failed deal, longtime L Brands leader Les Wexner stepped down as chief executive. Mr. Wexner had faced scrutiny amid alleged ties to the late Jeffrey Epstein, who was indicted last year for a scheme to sexually abuse minors.

Victoria’s Secret canceled its annual fashion show for the first time since its creation in the 1990s to re-imagine the brand’s marketing strategy. It also brought back catalog mailings after deciding to cut them.

The brand has been trying to turn its image around, said L Brands and Bath & Body Works CEO Andrew Meslow. “Customers have noticed the changes that we’ve made in our merchandise assortments and marketing and are responding positively,” he said.

L Brands said its profit was $330.6 million for the October-ended quarter, compared with a loss of $252 million a year earlier when it took a large write-down on the value of the Victoria’s Secret brand.

WSJ : Ahold Delhaize Buys Majority of Delivery Company FreshDirect

Ahold Delhaize Buys Majority of Delivery Company FreshDirect
Deal gives owner of Food Lion and Stop & Shop a bigger presence on East Coast

The owner of supermarkets including Giant and Stop & Shop said it would acquire a majority stake in grocery delivery company Fresh Direct LLC, expanding its U.S. presence as online ordering has boomed during the coronavirus pandemic.

Netherlands-based Koninklijke Ahold Delhaize NV said Wednesday that the deal will accelerate its growth online and around New York, where FreshDirect mainly operates.

“Delivery, to me, is here to stay,” said Farhan Siddiqi, Ahold Delhaize’s chief digital officer. He added that New York is among the most important regions for e-commerce because of its huge population and high rates of online shopping.

Private-equity firm Centerbridge Partners will become a minority investor in FreshDirect, with a 20% stake. The companies didn’t disclose financial terms.

FreshDirect’s sales have risen as the pandemic has pushed more consumers to shop for groceries online and eat most of their meals at home. Many people are visiting stores less frequently, augmenting those trips with online purchases from companies including FreshDirect, Amazon.com Inc.’s Whole Foods Market chain or Instacart Inc.

FreshDirect is profitable today, said CEO David McInerney. San Francisco-based Instacart, one of the biggest grocery delivery companies, last month raised $200 million, giving it a valuation of $17.7 billion. The venture capital-backed company said its valuation has more than doubled since the start of the year, and that its order volume and workforce have increased.

Many grocers are relying on Instacart and other outside companies to pack and deliver orders. Some supermarkets are building small, automated warehouses near their stores to prepare online orders.

But making delivery profitable remains challenging. Retailers have said online purchases tend to be less profitable than those in stores because of the extra expenses associated with filling, packaging and delivering orders. Some are giving priority to store-pickup orders over delivery orders.

FreshDirect, which opened in New York 18 years ago, raised $189 million from investors led by J.P. Morgan Asset Management in 2016. The deal with Ahold Delhaize and Centerbridge Partners is expected to close in the first quarter of 2021, the companies said.

>>> Asia Market Update: Another uneventful session for Asia; KRW drops; Chinese

Asia Market Update: Another uneventful session for Asia; KRW drops; Chinese corp debt still in the headlines

General Trend:
- Decliners in Japan include Iron/Steel and Air Transportation firms; Sharp to replace Docomo in the Nikkei 225 index [effective Dec 2nd]
- Consumer Staples drop in Australia after gains on Wed; Gainers include Consumer Discretionary and Financial firms ; Bluescope Steel rises on guidance
- Shanghai Composite traded flat during the morning session; Consumer firms rose, while brokers lagged
- Corporate debt issues start to impact brokerage firms in China (Haitong Securities)
- Shanxi, China Gov: Local SOEs do not have problem repaying debt
- TECH, Financial and Property indices decline in HK
- Korean Won (KRW) declines amid verbal intervention; BOK suspected to have purchased USD
- AU jobs data beat ests, little initial reaction seen
- Cerberus said to cancel CMBS transaction
- Philippines Central Bank (BSP) is expected to leave rates unchanged
- Shanghai Exchange launched its international copper contract
- PBOC is expected to leave its loan prime rates (LPRs) unchanged on Friday (Nov 20th)
- Friday (Nov 20th) is a Gotobi day in Japan [refers to the 5th day of the month and dates that are multiples of 5 (for example July 20th); Accounts are generally settled on Gotobi days]

***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened -0.1%
- (AU) AUSTRALIA OCT EMPLOYMENT CHANGE: +178.8K V -27.5KE; UNEMPLOYMENT RATE: 7.0% V 7.1%E
- (AU) Australia APRA Chairman Byres may have indicated that there are plans to ease bank dividend restrictions soon - press citing speech yesterday
- (AU) Reserve Bank of Australia (RBA) Offers to buy A$2.0B in Govt bonds v $4.0B prior
- (AU) Australia Oct RBA Govt FX Transactions (A$): -981M v -1.04B prior

Japan
-Nikkei 225 opened -0.4%
- 6753.JP To be added to Nikkei 225 effective Dec 2nd; to replace Docomo after NTT acquires company
- (JP) Japan Investors Net Buying of Foreign Bonds: +¥1.0T v ¥1.37T prior; Foreign Net Buying of Japan Stocks: +¥422.5B v +¥484.5B prior
-(JP) Tokyo said to confirm >500 coronavirus cases today (would be a new daily record) - Press
-(JP) Japan Fin Min Aso: Not thinking about second round of cash handouts; Conditions are different from when cash handouts were previously given, State of emergency has been lifted

Korea
-Kospi opened -0.3%
- (KR) South Korea Vice Fin Min Kim: Recent moves in Won are excessive; Will continue to take steps to stabilize currency market
- (KR) Bank of Korea (BOK) suspected or purchasing USD to slow gain in KRW
- (KR) Korea Iron & Steel Association and the World Steel Association sees 2020 crude steel production below 70Mt (1st time below 70M in 4 years) due to pandemic - Yonhap
- 068270.KR Coronavirus treatment is likely to file for emergency authorization use from local drug authorities next month – Yonhap
- (KR) South Korea Fin Min Hong: KRW recent gains have been faster than major currencies, Excessive volatility is not desirable

China/Hong Kong
-Hang Seng opened -0.3%; Shanghai Composite opened -0.3%
- (CN) China President Xi: Need to step up policy coordination; To expand domestic demand as strategic priority; china will expand domestic demand as a strategy; China will further reduce tariffs - speaking to APEC summit
- (CN) US, Australia and UK issues joint statement: Expect China to live up to international commitments, China needs to stop undermining rights of people in Hong Kong
- (CN) Shanxi Gov: Local SOEs do not have problem repaying debt
- (CN) China PBoC Open Market Operation (OMO): Injects CNY70B in 7-day reverse repos v Injects CNY100B in 7-day reverse repos prior; Net drain CNY50B v Net drain CNY50B prior
- (CN) China PBOC sets Yuan reference rate: 6.5484 v 6.5593 prior (strongest setting since June 2018)
- (CN) China Finance Ministry (MOF) expected to sell €4B in 5-year, 10-year and 15-year EUR denominated bonds; 5-year bond expected to price at an interest rate of -0.15%
- (HK) Hong Kong Monetary Authority: China Ministry of Finance (MOF) to issue an additional CNY5.0B in 2022 and 2025 yuan-denominated bonds in HK on Nov 25th (Wed)
- (CN) US State Dept issues paper on steps US should take in response to China's ‘fundamentally revise world order’ around its own ‘authoritarian goals’
- (CN) China Oct Swift Global Payments CNY: 1.66% v 1.97% prior

North America
- (US) GOP leaders in Pennsylvania State House are seeking to join Pres Trump's lawsuit challenging the election, claiming allowing voters to fix defective absentee ballots "compromised the electoral process and the secrecy" of secret ballots – press
- (US) President Trump has not made any plans to host the G7 Leaders Summit - financial press

Europe
- (UK) PM Johnson confirms boost to defense spending of $22B in order to increase UK influence – press
- AD.NL Ahold Delhaize and Centerbridge Partners acquire online grocer FreshDirect; No terms disclosed
- (UK) EU countries pressing EU Commission for its own no-deal Brexit plans - UK press
-(DE) ECB's Weidmann (Germany) calls on Eurosystem to consider climate related financial risks before making monetary policy decisions - FT Op Ed

***Levels as of 12:15ET***
- Hang Seng -0.6%; Shanghai Composite +0.1%; Kospi -0.5%; Nikkei225 -0.8%; ASX 200 +0.3%
- Equity Futures: S&P500 -0.0%; Nasdaq100 -0.3%, Dax -0.1%; FTSE100 -1.0%
- EUR 1.1858-1.1832; JPY 103.98-103.72; AUD 0.7307-0.7285; NZD 0.6926-0.6901
- Commodity Futures: Gold -0.4% at $1,866/oz; Crude Oil -0.5% at $41.80/brl; Copper -0.3% at $3.19/lb

FT : Boris Johnson promises biggest UK defence investment for 30 years

Boris Johnson promises biggest UK defence investment for 30 years
Prime minister persuades reluctant chancellor to award MoD a multiyear settlement

Boris Johnson has promised the biggest defence investment since the end of the cold war with a £16.5bn military spending boost that he says will “end the era of retreat” and pioneer new technology for the armed forces.

The financial settlement, which the prime minister will announce to MPs on Thursday, is the result of weeks of tense discussions between Downing Street, the Treasury and the Ministry of Defence.

Chancellor Rishi Sunak cancelled his comprehensive spending review last month and had planned to award all departments a one-year funding deal while he assessed the impact of coronavirus on the economy.

But Mr Johnson intervened this week to win a last-minute exemption for the MoD, which will now receive an extra £16.5bn over four years on top of its annual budget — which is set at £41.5bn for this financial year and is due to rise by 0.5 per cent above inflation every year of the parliament. 

“I have taken this decision in the teeth of the pandemic because the defence of the realm must come first,” the prime minister said ahead of the announcement.

He added that the international situation was “more perilous and more intensely competitive than at any time since the cold war” and that to remain true to its allies, the UK had to commit to upgrading its capabilities.

“This is our chance to end the era of retreat, transform our armed forces, bolster our global influence, unite and level up our country, pioneer new technology and defend our people and way of life,” he said.

The new financial deal comes just a week after Mr Johnson promised US president-elect Joe Biden that Britain was determined to remain a valuable military ally. The UK is already the second-biggest defence spender in Nato after the US, according to the International Institute for Strategic Studies.

The government had intended to set out its future priorities in an integrated defence, security and foreign policy review scheduled for later this month. However, as a result of the haggling over budgets, the review will now be postponed until the new year.

In the meantime, the prime minister will announce on Thursday a new agency dedicated to the military uses of artificial intelligence and confirm the creation of a National Cyber Force jointly run by the MoD and GCHQ.

He will also unveil plans for an armed forces Space Command, which will be capable of launching its first rocket in 2022. Dominic Cummings, Mr Johnson’s former chief adviser, had pushed hard to secure more money for cyber and space.

The funding settlement includes £1.5bn in new money for research and development into the UK’s next-generation fighter jet programme. This, combined with other new projects, is expected to create up to 10,000 jobs a year across the country, Downing Street said.

The announcements were welcomed by military chiefs, who have repeatedly argued that a one-year settlement could increase waste by allowing continued funding of redundant capabilities and would prevent more ambitious investments.

“This is a surprisingly decisive financial commitment,” said Michael Clarke, former director-general of the Royal United Services Institute. “But the headline figures disguise a lot of hard decisions about what older capabilities are going to have to be cut to be able to afford the new bells and whistles.”

The department’s financial problems have been compounded by a £13bn hole in its 10-year equipment plan. Even with a more generous settlement than expected, it is likely that ageing programmes such as tanks and some crewed minehunter ships may have to be cut in order to plug the funding gaps while investing in new technologies.

Defence secretary Ben Wallace, a long-term political ally of Mr Johnson, appears to have argued successfully that his department should receive special treatment even as the Covid-19 crisis is forcing cost-cutting elsewhere. “They have an underrated alliance — it’s proving rather stronger than you might think,” said one person close to the budget discussions.

Mr Wallace said ahead of the announcement that the new funding would provide the financial certainty needed to “modernise, plan for the future and adapt to the threats we face”.

Mr Sunak reluctantly agreed that a multiyear settlement was justified on the basis of securing jobs for people working on military projects and to ensure there was no disruption to projects that were already in train.

Mr Johnson told Mr Biden on November 10 that he looked forward to working with him when he becomes president. Downing Street said the two leaders were committed “to building on this partnership in the years ahead, in areas such as trade and security — including through Nato”.

Christopher Miller, the acting US defence secretary, welcomed the UK’s decision to significantly increase defence spending.

“The UK is our most stalwart and capable ally, and this increase in spending is indicative of their commitment to Nato and our shared security,” he said. “With this increase, the UK military will continue to be one of the finest fighting forces in the world.

“Their commitment to increased defence funding should be a message to all free nations that the most capable among us can — and must — do more to counter emerging threats to our shared freedoms and security.”

Mr Johnson is keen to make the case for a strong role for a “global Britain” after the end of the Brexit transition period on January 1.

The spending package is expected to include a boost for the Royal Navy, which Mr Johnson regards as a highly visible representation of his foreign policy, with a crucial role in protecting trade routes.

FT : Countries brace for ‘silent tsunami’ of antibiotic-resistant infections

Countries brace for ‘silent tsunami’ of antibiotic-resistant infections
Over half a century after antibiotics revolutionised medicine, overuse threatens existing treatments while the pipeline of replacements is thin

When drugmaker AstraZeneca closed down its research and development centre in Bangalore six years ago, some of the local scientists managed to find new jobs at a nearby biotech start-up. Since then, they have been working to tackle a problem which is causing concern among doctors in India and around the world: the human body’s increasing resistance to antibiotics.

For Anand Anandkumar, the chief executive of Bugworks, the burden is personal. His father, a leading infectious disease doctor, died after a cardiac intervention led to a Klebsiella pneumoniae bacterial infection that drugs could not treat. His co-founder lost a baby in hospital to a fatal form of E. coli.

“This is a silent tsunami,” he says. “We have the biggest superbug problem. In three to five years, many Indian hospitals will delay surgery unless it’s absolutely life threatening. If this isn’t a pandemic, what is it?”

The task is substantial for the limited number of researchers like him. Larger companies like AstraZeneca favour prioritising more lucrative lines of drug development and have sold off rights to their existing antibiotics, leaving smaller companies like Bugworks trying to fill the gap of producing new antibiotics which humans are less resistant to.

For them, finding a sustainable financial model has proved difficult. Last year, for example, the biotech company Achaogen — which had previously received US regulatory approval for its novel antibiotic plazomicin — folded after failing to generate sufficient revenues to win continued backing from its investors.

Little more than half a century after the first antibiotics revolutionised medicine, overuse threatens existing treatments while the pipeline of replacements is thin. There are signs of progress, but they have proved sluggish — further slowed after the coronavirus pandemic monopolised the world’s attention.

While comprehensive data is lacking, the World Health Organisation calls antibiotic resistance one of the top 10 public health threats facing humanity. According to the Centers for Disease Control and Prevention, the US alone has more than 2.8m cases and over 35,000 deaths a year. The UN fears 10m deaths a year from drug-resistant infections worldwide by 2050.

One fundamental driver is misuse. In many countries, drugs are far too easily and cheaply available without a prescription. Counterfeit and poor quality medicines provide insufficient active ingredient to kill an infection, fuelling the development of resistant bacterial strains.

Many patients take incomplete courses of treatment because they cannot afford to buy the full dosage or stop early once they feel better, particularly if the drug has side effects. But even if they seek and adhere to professional medical advice, doctors frequently prescribe inappropriately — for example to treat viral rather than bacterial infections.

Much transmission takes place in hospitals, with strains brought in by some patients and transferred to others, reflecting inadequate detection, isolation, hygiene and control measures. Marc Mendelson, head of infectious diseases and HIV medicine at the University of Cape Town’s Groote Schuur Hospital, says: “In South Africa, we have 42 infectious disease specialist consultants for a population of 60m. I’ve visited hospitals in Italy with more than that. You need microbiologists, laboratory access, an ability to diagnose. And we have a massive cadre of private doctors in the communities who will treat everything with an antibiotic.”

Aside from inadequate tools and medical resources, he points to underlying problems of sanitation, clean water and wider social factors that spread disease in poor regions of the world. “The real driver that feeds everything is the massive burden of infection in lower and middle income countries,” he says.

But in parallel, the food chain also fosters antibiotic resistance. Life-saving drugs such as colistin — a so-called last resort antibiotic — reduce infection and promote growth in animals. Human and cattle effluent puts medicines into the water system. Antibiotics are even used in crop cultivation, notably arable and rice production in south-east Asia and China.

Despite such pressures, John Rex, a pharmaceutical industry veteran who is chief medical officer at biotech company F2G, professes cautious optimism. “We are in an amazingly strong position relative to 10 years ago,” he says. He points to several scientific and inter-governmental initiatives that have raised awareness and developed a series of reforms.

New “push” funding and co-ordination for early scientific research on antibiotics has come through the Global Antibiotic Research and Development Partnership and the Combating Antibiotic-Resistant Bacteria Biopharmaceutical Accelerator, which funds Bugworks in Bangalore. The pharmaceutical industry recently launched a $1bn AMR Action Fund to support companies conducting later-stage trials of experimental drugs.

That still leaves a gap for significant “pull” rewards for newly-approved antibiotics. The idea is to “decouple” the payment to companies that develop a new drug, from the normal link to its usage. Instead, they would receive substantial money upfront for simply launching an effective innovative medicine, to slow the speed of resistance by discouraging its widespread prescription. Mr Rex likens the system to fire extinguishers or life insurance — something society funds while hoping it will not need to be used. “People must be willing to pay for something that is terribly boring — preparedness,” he says.

The UK’s NHS is running a pilot which would pay rewards of up to £10m a year for new antibiotics regardless of the volumes prescribed. A similar project is under way in Sweden, and in the US, the proposed Pasteur Act would offer upfront incentives totalling $10bn for innovative drugs.

But money to stimulate new antibiotics will not be sufficient. Yusuf Hamied, the head of Cipla, the Indian company that bought the rights to plazomicin from Achaogen after the drug was approved in the US, says regulatory barriers remain too high. He also suggests developing “boosters” and inhaled formulations of existing antibiotics to reduce the volumes of medicine required.

Financial incentives will also be needed to develop new diagnostics that can more rapidly, reliably and cheaply distinguish whether and which drugs are required; and new practices to promote better “stewardship” by health systems to ensure existing treatments are used more appropriately.

To bring pressure on the food chain, fund manager Jeremy Coller, founded the Farm Animal Investment Risk and Return initiative for investors demanding that producers and restaurants switch to more sustainable production methods, including eliminating antibiotics. Coupled with legislation and consumer pressure, companies including McDonald’s are responding.

Separately, Timothy Walsh at Oxford university is researching animal-specific antibiotics, to shift farmers away from using drugs needed for patients. “Instead of spending $1bn to develop a new magic bullet for humans, we’re looking for novel compounds to use in aquaculture and agriculture, particularly for poultry,” he says.

New regulations limiting the use of antibiotics in farming have been introduced in the US, the EU and China, although Prof Walsh argues they leave loopholes, such as allowing the re-export of drug-infused animal feed from manufacturers in these countries to others with less stringent controls.

Others suggest that resistance to antibiotics is inevitable, and that more emphasis should be placed instead on developing and increasing the use of existing as well as new vaccines to prevent the spread of bacterial infections such as meningitis in the first place.

Jim O’Neill, who led an influential review of antimicrobial resistance, argues that just as regulators have started to scrutinise the financial risks of climate change to banks, the IMF should turn its attention to the dangers to countries from drug resistance. “It needs to start developing expertise to offer its independent voice on the strength and quality of health systems,” he says.

As the UK prepares to host the G7 as well as the UN’s COP26 climate change conference in 2021, and Italy to take on the presidency of the G20, Mr O’Neill says they should focus on antibiotic resistance. “Even if you have the G7, what can you do without India and China in the G20?” he says.

FT : Bundesbank chief: How central banks should address climate change

Bundesbank chief: How central banks should address climate change
Jens Weidmann says we can explore requiring better risk disclosures but cannot make up for a lack of political will


The writer is president of the Deutsche Bundesbank

Imagine you had magical powers that could make the global climate crisis disappear. Wouldn’t you use them? I certainly would. Without a doubt, tackling this crisis is one of the greatest and most pressing challenges of our time. Every one of us should be doing more to curb global warming.

This goes for central banks, too. It includes shrinking their carbon footprints as institutions but our response cannot stop there. In particular, it is essential for us to learn more about the implications for monetary policy of climate change and efforts to address it. Climate-related financial risks are another factor that central banks need to consider. In our role as prudential supervisors and guardians of financial stability, we have to ensure that banks adequately incorporate these risks into their risk management.

Central banks must also practise what they preach. We owe it to our taxpayers to keep the financial risks that arise from our monetary policy operations in check. That’s why central banks should make sure that climate-related financial risks are given due consideration in their own risk management.

To this end, it is legitimate to expect securities issuers and rating agencies to provide better information. The Eurosystem — the European Central Bank and the national central banks — should consider only purchasing securities or accepting them as collateral for monetary policy purposes if their issuers meet certain climate-related reporting obligations.

We could also examine whether we should use only those credit ratings from rating agencies that appropriately include climate-related financial risks. With such measures, the Eurosystem would help foster market transparency and standards at rating agencies and banks. We would act as a catalyst for “greening” the financial system and support climate policies.

Economists widely agree that raising the market price of carbon is key to slowing global warming. This is a matter for governments and parliaments to address. They have the right tools at their disposal, such as taxes or “cap and trade” schemes, and also have the democratic authority to use them.

It is not the task of the Eurosystem to penalise or promote certain industries. Our primary objective is to maintain price stability. To achieve this goal in an economic crisis like the one we face today, it is imperative for monetary policy to keep interest rates low and support the whole economy. Asset purchase programmes are a component of our expansionary monetary policy. To be effective, they need to be broad-based. The principle of “market neutrality” aims to ensure this and prevent us from distorting market outcomes. We must check whether we have unintentionally allowed bias to creep into our securities portfolio, compared to the universe of eligible bonds. But it is not up to us to correct market distortions and political actions or omissions.

Elected politicians have staked out the goals of the Paris agreement. It is unfortunate that they have not yet agreed on a concrete adjustment path. As a father of two, I very much regret seeing often halfhearted climate policies and a lack of credible commitment to a clear transition. But should central banks make up for a lack of political will? And how would their intervention be seen? As a form of support for policies? As an attempt to overturn them? Or as a way of letting politicians off the hook? Would central banks become engulfed in politics and undermine their own independence?

Central bank independence is not an excuse for inaction. It is an obligation to stay focused on our primary objective. It follows from the insight — and a broad consensus — that price stability is the best contribution monetary policy can make to overall welfare. Monetary policy has often been credited with extraordinary powers. That adulation has never really rung true. When it comes to saving the planet, central banks do not have a magic wand.

>>> US After Hours Summary: SONO +22.4%, LB +15%, JACK +5.8%, NUAN

After Hours Summary: SONO +22.4%, LB +15%, JACK +5.8%, NUAN +5.6% up big on earnings; CORT +21.9% jumps on favorable patent ruling; NVDA -2.5% down on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SONO +22.4% (says it reached an inflection point in SepQ; also announces $50 mln stock repurchase plan), LB +15% (also comps +28%), JACK +5.8% (also reports strong comps at +12.2%), NUAN +5.6% (also to sell HIM Transcription and EHR Go-Live Services businesses), BILI +5.3%, PAGS +2.3%, UGI +1.5%, SCVL +0.6%, CPRT +0.3%

Companies trading higher in after hours in reaction to news: APVO +35.4% (receives $50/share acquisition proposal from shareholder Tang Capital), CORT +21.9% (Patent Trial and Appeal Board upheld the validity of all claims of CORT's '214 patent), LNTH +8.6% (FDA approves sNDA for DEFINITY Room Temperature), AQST +6.7% (completes FDA meeting on Libervant; believes no additional clinical studies needed for NDA resubmission), KRA +2.5% (announces price increase for Tall Oil Fatty Acids), RIG +2.4% (announces that Petrobras extends two rig contracts), PLTR +2.2% (receives prototype contract from the US Army), AFL +2% (increases dividend), BNTX +0.8% (QGEN and BNTX to collaborate on diagnostic development for HPV squamous cell carcinoma), AIG +0.5% (S&P 'A-2' rating removed from CreditWatch negative), TEVA +0.4% (Patent Trial and Appeal Board upheld the validity of all claims of CORT's '214 patent), STAG +0.2% (announces groundbreaking of solar install in Maryland), A +0.1% (increases dividend), MATW +0.1% (increases dividend)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ZTO -5.4%, CPA -4.6%, NVDA -2.5%, CUB -1.4%, KLIC -0.6%, KEYS -0.2% (also announces $750 mln buyback program), SQM -0.1%

Companies trading lower in after hours in reaction to news: MGTX -8.1% (stock offering), GPRO -5.1% (convertible notes offering), STOK -1.8% (stock offering), GPI -1.3% (reinstates quarterly dividend), ALGN -1.2% (announces ITC reversal of Admin Law Judge infringement finding), TGI -0.5% (extends CEO's contract)