-
ProSieben (PSM TH) +2.9%
- ProSieben Raised to Buy at Goldman; PT 14.60 euros
- Nemetschek (NEM TH) +2.8%
- Nemetschek Raised to Overweight at Barclays; PT 75 euros
-
Evotec SE (EVT TH) +2.7%
- DGAP-News: Evotec achieves milestone in neurodegeneration collaboration with Bristol Myers Squibb
-
GVC (6GI TH) +2.6%
- GVC Full Year Adjusted Ebitda Forecast Beats Estimates
- BP (BPE5 TH) +2.3%
- Ubisoft (UEN TH) +2.1%
- Vestas (VWS TH) +1.7%
- Cancom (COK TH) +1.6%
- Kingfisher (KFI1 TH) +1.1%
- TeamViewer (TMV TH) +1.1%
- Rational (RAA TH) -2.6%
- Rational Cut to Sell at Bankhaus Lampe; PT 540 euros
DAX:
- SAP (SAP TH) +0.9%
- Bayer (BAYN TH) +0.9%
- Deutsche Post (DPW TH) +0.7%
MDAX:
- Nemetschek (NEM TH) +3.3%
- Nemetschek Raised to Overweight at Barclays; PT 75 euros
- ProSieben (PSM TH) +3.2%
- ProSieben Raised to Buy at Goldman; PT 14.60 euros
- Evotec SE (EVT TH) +2.9%
- Cancom (COK TH) +1.6%
- K+S (SDF TH) +1.4%
- K+S Raised to Sector Outperform at Scotiabank; PT 9.50 euros
SDAX:
- SMA Solar (S92 TH) +3.3%
- DIC Asset (DIC TH) +1.8%
- LPKF (LPK TH) +1.6%
- Encavis (CAP TH) +1.5%
- Borussia Dortmund (BVB TH) -1%
- Suedzucker (SZU TH) -1%
- Suedzucker forecasts deeper FY sugar unit operating loss than previously seen
The Vice Presidential Debate: The Moments That Mattered
Vice President Mike Pence and Sen. Kamala Harris clash over coronavirus, economy and climate change
Vice President Mike Pence and Sen. Kamala Harris squared off in their first and only debate on Wednesday, sparring over the coronavirus pandemic, health care, racial-justice protests and other issues that have dominated the 2020 campaign with less than one month remaining until the November election.
The candidates met in Salt Lake City, where they were separated by plexiglass after President Trump and a growing group of White House workers tested positive for coronavirus in the days after his debate last week with Democratic nominee Joe Biden.
Unlike the chaotic first presidential debate, which saw Mr. Trump repeatedly interrupt both Mr. Biden and moderator Chris Wallace, the 90-minute encounter between Mr. Pence and Ms. Harris was calmer and more focused on policy differences.
Mr. Trump’s diagnosis raised the stakes for the debate, underscoring the significance of the role of vice president and the lingering impact of a pandemic that has claimed more than 211,000 lives across the U.S.
Here are the moments that stood out:
Trump’s handling of the coronavirus pandemic
With the number of coronavirus infections reported in the U.S. since the start of the pandemic at about 7.5 million, the virus and its impact on American life immediately took center stage.
Ms. Harris swiftly declared Mr. Trump’s response to the pandemic “the greatest failure of any presidential administration in the history of our country,” while seizing on the president’s comments that he played down the severity of the virus to avoid inciting panic.
“They knew what was happening, and they didn’t tell you,” Ms. Harris said, looking directly into the camera, addressing viewers at home. “They knew and they covered it up.”
Mr. Pence, who is the head of the White House coronavirus task force, defended the administration’s handling of the pandemic and said it was the responsibility of the public to follow social-distancing guidelines.
“President Trump and I trust the American people to make choices in the best interests of their health,” Mr. Pence said. “Joe Biden and Kamala Harris consistently talk about mandates, and not just mandates with the coronavirus, but a government takeover of health care.”
Mr. Pence addressed the Sept. 26 event at which Mr. Trump nominated Amy Coney Barrett to serve on the Supreme Court. After that gathering, the president and more than a dozen others tested positive for coronavirus. Mr. Pence said it was an outdoor event and many attendees were tested beforehand.
He also accused Ms. Harris of undermining public confidence in a coronavirus vaccine, telling his opponent, “Stop playing politics with people’s lives.”
Ms. Harris said she would be “the first in line” for the vaccine if public-health professionals, such as Dr. Anthony Fauci, approved of its safety and efficacy. “But if Donald Trump tells us that we should take it, I’m not taking it,” she said.
Health-care clash: “They’re coming for you.”
The issue of health care wasn’t restricted to the pandemic. With the Supreme Court poised to hear oral arguments in November over the health-care law signed into law by President Obama, Ms. Harris accused the Trump administration of seeking to strip coverage away from people.
“If you have a pre-existing condition—heart disease, diabetes, breast cancer—they’re coming for you,” Ms. Harris said. “Literally in the midst of a public health pandemic…Donald Trump is at court right now trying to get rid of the Affordable Care Act.”
Mr. Pence shot back that he and Mr. Trump had “a plan to improve health care and protect pre-existing conditions for every American.”
“Obamacare was a disaster,” Mr. Pence said. “The American people remember it well.”
Pressed by moderator Susan Page on how the Trump administration would protect those with pre-existing conditions, Mr. Pence said such protections would continue under the president’s health plan but didn’t offer specifics. He then pivoted to the issue of the judiciary, suggesting that Mr. Biden and Ms. Harris would add seats to the Supreme Court if elected.
In response, Ms. Harris spoke more broadly about issues she believed were at stake depending on the balance of the Supreme Court. But she didn’t say if she or Mr. Biden supported expanding the court.
“I just want the record to reflect she never answered the question,” Mr. Pence said.
Racial-justice protests and unrest in America
A national debate over race and policing returned to the spotlight last month after a grand jury indicted one of the Louisville police officers involved in the fatal shooting of Breonna Taylor—but on charges related to endangering her neighbors, not charges linked to her death.
The two candidates differed when asked if justice was served in the high-profile case, which kicked off a fresh wave of racial-justice protests across the country.
“I don’t think so,” said Ms. Harris, a former prosecutor and the first Black woman on a major-party presidential ticket. “Her family deserves justice. Her life was unjustifiably taken.”
Mr. Pence, by contrast, said he supported the grand jury’s decision, saying Ms. Taylor’s family “has our sympathies, but I trust our justice system, a grand jury that reviews the evidence.”
Mr. Pence went on to criticize the violence that accompanied some of the protests, using it to push the “law and order” message that has been at the center of Mr. Trump’s re-election campaign. Appearing to address law enforcement, Mr. Pence said, “President Trump and I stand with you.”
Mr. Pence also said America was not “systemically racist” and there was no implicit bias in law enforcement. Ms. Harris responded by criticizing Mr. Trump’s comments about white supremacists at the first presidential debate.
At that debate, Mr. Trump was asked if he would condemn white-supremacist groups and urge them to stand down in clashes such as those in Kenosha, Wis., and Portland, Ore. Mr. Trump said: “Sure, I’m willing to do that, but I would say, I would say almost everything I see is from the left wing.” After Mr. Biden urged the president to denounce the far-right group Proud Boys, Mr. Trump said: “Proud Boys. Stand back, and stand by, but I’ll tell you what, I’ll tell you what: Somebody’s got to do something about antifa and the left.” He later said he didn’t know who the Proud Boys were.
Ms. Harris rejected Mr. Pence’s characterization of the protests, pointing out that they were largely peaceful and that she participated in some. She also invoked her record as a prosecutor, saying she was the only candidate with direct experience on issues of criminal justice.
“I will not sit here and be lectured by the vice president about what it means to enforce the laws of our country,” Ms. Harris said.
Candidates try to sound more hawkish than each other on China
The coronavirus pandemic created a fresh rift in U.S.-China relations, which for years have become more strained amid a combative economic climate and more assertive Chinese foreign policy.
Asked if China was a friend, competitor, or enemy to the U.S., Mr. Pence vowed to hold Beijing accountable for the spread of the coronavirus.
“China is to blame for the coronavirus, and President Trump is not happy about it,” Mr. Pence said. “He’s made that very clear.”
Ms. Harris once again attacked the Trump administration’s record on the coronavirus, while also arguing that the president’s trade war with China had cost American jobs.
“The Trump administration’s perspective and approach to China has resulted in the loss of American lives, American jobs and America’s standing,” Ms. Harris said. “You lost that trade war. You lost it.“
That answer drew a rebuke from Mr. Pence, who retorted, “Lost the trade war with China? Joe Biden never fought it.”
Shift in European equity market belies old economy tropes
Weighting of banks and energy stocks in key indices falls while healthcare and technology rises
The writer is chief European equity strategist at Morgan Stanley
When the European equity market is compared with its US counterpart, an old trope of old vs new economy is often trotted out.
There is a common perception among equity investors that the European market has high exposure to financial and commodity sectors and a low weighting to technology and other, more vibrant, growth-oriented sectors.
This viewpoint is increasingly outdated. Taking a closer look at the European equity market suggests that this leopard is indeed changing its spots. The sector often seen as synonymous with the European equity market is banks, even though healthcare is more than twice the size of the former.
Ten years ago, banks and energy were the two largest sectors in the MSCI Europe index by market capitalisation and accounted for 25 per cent of the entire index. Today, this figure is down to a record low of 10 per cent.
Even when we include the other unloved sectors that are perceived to be at the coal face of “disruption”, namely autos and telecoms, the overall weighting of this area of the market rises to just 15 per cent.
In contrast, 45 per cent of MSCI Europe can be accounted for by healthcare, consumer staples and industrials — sectors that offer a healthy mix of good, quality growth. When we compare the sector mix of the European equity market to its global peers, these same three areas are those where Europe is most “overweight”, while its exposure to banks is no greater than that found in the MSCI All Country World Index.
In this context, the key question to ask is why Europe continues to trade as a value stock, even though its “old economy” exposure is much reduced? The answer here is less about what Europe does have, but rather what it doesn’t.
Over the past decade, technology has seen the second-largest increase of any sector in MSCI Europe (after healthcare). However, given a low starting point, today’s exposure is still just 8 per cent. In contrast, 28 per cent of MSCI USA is listed as technology, which rises closer to 40 per cent once we adjust for related names that are listed in other sectors.
Faced with such a divergence, it is very challenging for headline European indices to keep pace with some of their regional peers while the tech sector is in the ascendancy.
It’s not all doom and gloom on this front, however; while the broad MSCI Europe index is light on technology, this is not true across all regional or country indices.
Although Germany is viewed as the industrial heartland of Europe, the largest sector in MSCI there is not capital goods or autos, but rather technology, followed by healthcare.
We can observe a similar trend for the Euro Stoxx 50, which is arguably the most important index for top-down macro investors in Europe because of the level of futures trading activity linked to it. The largest sector in this (admittedly concentrated) index is technology, followed by personal and household goods and healthcare. Banks languish down in eighth place, a shadow of their former selves (a decade ago, they were twice the size of the next largest sector).
In the short term, the outsized influence of technology shares on global equity markets means that it is easy to overlook the improving sector composition of the European equity market. In turn, this should justify a higher valuation range for European indices than in the past. And this is not just for the simple rationale that better growth should warrant higher valuations.
Over the past decade and more, we would argue low interest rates have boosted the relative attractiveness of equities in the US more than they have in Europe despite the latter seeing materially lower (and negative) bond yields. That is down to the perceived security of the respective corporate income streams, with US earnings seen as more stable and European profits viewed as more cyclical and volatile.
When bond yields are low, it is easier to place a higher valuation on a stable income stream than when low or negative rates may actually be signalling caution about the earnings outlook — or making it worse in the case of financials.
Consequently, Europe’s transition to a superior sector mix looks set to improve the longer-term growth and valuation outlook for the region. Coupled with an agreement on the EU Recovery Fund earlier this summer, this suggests that the investment case for Europe is improving.
U.S. and European equity futures advanced together with most Asian stocks as investors mulled encouraging signs for Joe Biden in the presidential election race and the outlook for stimulus. Treasuries steadied after yields pushed higher Wednesday.
Shares rose in Australia and Japan, while Hong Kong stocks slipped as a gaugeof Asian equities reached the highest level in three weeks. S&P 500 futures edged up following the index’s 1.7% overnight advance, while the dollar dipped. New Zealand’s dollar sank as the central bank indicated a readiness to deploy more stimulus.
Nancy Pelosi signaled openness to an airline-relief bill in talks with Steven Mnuchin after President Donald Trump scuttled broader negotiations. State polls showed Biden is widening his lead in a slew of crucial battleground states. In the vice presidential debate, Kamala Harris and Mike Pence sparred over topics including the economy and the U.S. response to the coronavirus.
US After Hours C is flat but a name to watch as Fed announces enforcement action; ATEC +27.6% and CDNA +11.8% jump on bullish guidance
Nikkei +0.97% Hang Seng -0.66% CSI -0.10% Shanghai -0.20% Shenzen +0.05%
Eur$ 1.1774 CNH 6.7331 CNY 6.7910 JPY 105.97 GBP 1.2934 CHF 0.9166 RUB 78.0316 WTI$40.04 +0.00%
S&P +0.31% Nasdaq +0.29% EuroStoxx +0.41% FTSE +0.02% Dax +0.40% SMI
Macro :
- U.K. Plans to Quit Brexit Talks If No Deal Clear Next Week
- Macron Says ‘More’ Covid-19 Restrictions to Be Detailed Thursday
- Italian Prime Minister Claims Italy is Safe for Travelers: FAZ
Spacs
- Blank-Check Firm Backed by NGEN Partners Files for $125m IPO
- Kissinger Warns U.S. and China Must Set Limits to Avoid a Blowup
Keep an eye on :
- ADE NO : FDV to Buy Three Online Classified Businesses From Adevinta
- AMS SW : *AMS : Ams Business 3Q Rev. Comes Near Top End of Expectation Range
- ATC NA : Altice Europe Investor Says Shares Underprice Drahi Achievements
- BT/A LN : BT Pension to Achieve Net Zero Emissions Target by 2035: Times
- CINE LN : Cineworld’s Short Sellers Bet That the Worst Is Yet to Come
- BN FP : Danone Sets Carbon Neutrality Goal For Infant Milk Formula Brand
- DIS US : Disney Activist Loeb Wants Dividend Halt to Fund Streaming Hits
- EZJ LN : Easyjet Has Told U.K. Govt It May Need More State Support: Sky
- ENI IM : U.K. Regulator Gives Eni License to Store Carbon Off Liverpool
- EQR NO : Equinor Says Ongoing Oil Strike Threatens Main North Sea Field
- EMBRACB SS : Embracer to Sell 29m New Shrs; Co-Founders Sell 9m Shrs (1)
- ALGAU FP : GAUSSIN : Guillaume Pepy
- GIVN SW : Givaudan Third Quarter Sales Miss Estimates
- GRNG SS : Granges to Pay for Part of Boryszew’s Aluminium Konin in Shares
- IDIA SW : Idorsia to Raise About CHF575m Via Rights Offering
- KORI FP : Korian Launches EU400M Share Capital Increase At EU18.10/Share
- MAS SM : Solaria to Replace Masmovil in Spanish Benchmark Ibex 35
- MB IM : Del Vecchio Increases Stake in Mediobanca to 10.2%
- MB IM : Mediobanca Needs Ambitious Plan: Del Vecchio Tells Messaggero
- NEXI IM : White House Curbs on Chinese Payment Apps Would Send Shock Waves
- RATOB SS : Ratos Sells Bisnode to Dun & Bradstreet for EV of SEK7.2b
- REP SM : Novatek in Talks With Repsol on Hydrogen Supplies: Kommersant
- SKJE DC : Money Launderers May Have Targeted a Small Danish Bank: DR
- SLR SM : Solaria to Replace Masmovil in Spanish Benchmark Ibex 35
- SPI AV : Pecik’s Etamin to Sell About 3.84m S Immo Shares to Evax Holding
- SZU GY : Suedzucker Cuts Full Year Sugar Unit Operating Loss Forecast
- TGS NO : TGS Prelim Third Quarter Net Revenue About $81 Mln
- UNI SM : Unicaja, Liberbank Start Formal Negotiations: Expansion
- URW NA : Samlyn Capital Boosts Short Position in Unibail to 1.50%
- VOW3 GY : Volkswagen Expects 90% Electric Car Sales in 2021; Target Price $159
- WLN FP : White House Curbs on Chinese Payment Apps Would Send Shock Waves
>>> Up
* ACS Raised to Equal-Weight at Morgan Stanley; PT 32 euros
* BASF Raised to Buy at MainFirst; PT 64 euros
* Capital & Counties Raised to Buy at Peel Hunt; PT 180 pence
* Close Brothers Raised to Add at Peel Hunt
* KBC Group Raised to Buy at Deutsche Bank; PT 56 euros
* K+S Raised to Sector Outperform at Scotiabank; PT 9.50 euros
* Lindt & Spruengli Raised to Hold at MainFirst
* Network International Raised to Overweight at JPMorgan
* Pirelli Raised to Buy at MainFirst; PT 4.45 euros
* ProSieben Raised to Buy at Goldman; PT 14.60 euros
* SBM Offshore Raised to Buy at SocGen; PT 18 euros
* Shaftesbury Raised to Add at Peel Hunt; PT 600 pence
>>> Down
* Cairn Energy Cut to Add at Peel Hunt; PT 159 pence
* Gurit Cut to Reduce at Baader Helvea; PT 2,050 Swiss francs
* Novozymes Cut to Sell at Berenberg; PT 350 kroner
* PostNL Cut to Hold at ABN Amro Bank; PT 3 euros
* Rexel Cut to Neutral at Citi
* Saint-Gobain Cut to Neutral at Citi
* Sinch Cut to Sell at Handelsbanken; PT 800 kronor
* Veolia Cut to Reduce at AlphaValue
>>> Initiation
* Amplifon Rated New Buy at Citi; PT 36.40 euros
* Biffa Rated New Buy at Berenberg; PT 270 pence
* Demant Rated New Neutral at Citi; PT 220 kroner
* GN Store Nord Rated New Buy at Citi; PT 590 kroner
* MJ Gleeson Rated New Buy at Panmure Gordon; PT 950 pence
* Siemens Energy Rated New Buy at HSBC; PT 31 euros
* Sonova Rated New Neutral at Citi; PT 240 Swiss francs
>>> Call
* Citi Continues to Prefer Soft Drinks and Beer to Spirits Stocks
* ACS Loses Only Sell, Unit Sale Limits Downside: Morgan Stanley
* Biffa a Strong ESG and Growth Play, Berenberg Initiates at Buy
* Capco, Shaftesbury Raised, London Attractions Remain: Peel Hunt
* Embracer Adds ‘Firepower’ Via Stake Sale, Placement: Citi
After Hours Summary: C is flat but a name to watch as Fed announces enforcement action; ATEC +27.6% and CDNA +11.8% jump on bullish guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: ATEC +27.6% (guides Q3 revenue above consensus), CDNA +11.8% (guides Q3 revenue above consensus)
Companies trading higher in after hours in reaction to news: SAR +5.1% (increases dividend), REGN +2.8% (Trump tweets video), COTY +2.7% (launches websites for Kylie Skin in the UK, France, Germany and Australia), AUY +1.5% (increases dividend; also gets approval to list in London), TBIO +1% (highlights mRNA platform potential for cystic fibrosis), AMC +1% (gets approval to reopen theatre), HRZN +0.6% (provides 3Q20 portfolio update), BV +0.2% (acquires Commercial Tree Care), C +0.1% (Fed announces enforcement action against Citi; OCC assesses $400 mln civil money penalty), FB +0.1% (US House antitrust chairman says that he'd be ok with unwinding Instagram purchase, according to Reuters), BA +0.1% (Space Force Satellite passes design review)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: RGP -8.7%, NSC -0.1% (guides Q3 revenue in-line)
Companies trading lower in after hours in reaction to news: LAND -3.2% (stock offering), ANGI -3.1% (provides monthly metrics), GLYC -2.9% (files for $100 mln stock offering), HON -1.4% (acquires Rocky Research), IAC -0.6% (provides monthly metrics), CMP -0.2% (S&P outlook revised to stable from negative), GWRE -0.1% (authorizes $200 mln stock repurchase program), COG -0.1% (provides operational update)