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

>>> Up
* Anglo American PT Raised to 2,750 pence at Barclays (+)
* Bureau Veritas Raised to Buy at HSBC; PT 24 euros
* Carbios Raised to Buy at Gilbert Dupont; PT 43 euros (+)
* Computacenter PT Raised to 2,728 pence from 2,008 pence at Citi
* *ENDESA RAISED TO OVERWEIGHT VS EQUAL-WEIGHT AT MORGAN STANLEY
* Eurocommercial GDRs Raised to Neutral at JPMorgan; PT 15 euros
* Figeac-Aero Raised to Buy at Midcap Partners; PT 4 euros
* Fuchs Petrolub Raised to Add at Baader Helvea; PT 45 euros
* Glencore Raised to Outperform at RBC; PT 240 pence
* HeidelbergCement Raised to Buy at MainFirst; PT 65 euros
* *HYPOPORT RAISED TO BUY VS HOLD AT COMMERZBANK, PT EU550
* Inchcape Raised to Buy at Peel Hunt; PT 600 pence
* Leonardo Raised to Buy at SocGen; PT 6.50 euros
* MJ Gleeson Raised to Buy at Canaccord; PT 700 pence (+)
* *NATURGY RAISED TO EQUAL-WEIGHT AT MORGAN STANLEY, PT EU17
* PGS ASA Raised to Hold at Arctic Securities; PT 3 kroner
* Rio Tinto Raised to Overweight at JPMorgan; PT 6,350 pence
* Rio Tinto Raised to Equal-Weight at Barclays; PT 4,000 pence
* Servizi Italia Raised to Buy at Midcap Partners; PT 3 euros
* SGS Raised to Hold at HSBC; PT 2,350 Swiss francs

>>> Down
* Aedas Homes SA Cut to Neutral at Citi; PT 18.70 euros
* Avio Cut to Neutral at Banca Akros (ESN) (+)
* G4S Cut to Hold at Deutsche Bank; PT 170 pence
* Lectra Cut to Sell at Midcap Partners; PT 15.30 euros
* Rational Cut to Hold at Berenberg; PT 615 euros

>>> Initiation
* AO World Re-Initiated Buy at Peel Hunt; PT 249 pence
* Cellularline Cut to Accumulate at Banca Akros (ESN) (+)
* EasyJet Resumed Hold at Liberum; PT 600 pence
* Enagas Reinstated Underweight at Morgan Stanley; PT 19 euros
* Just Eat Takeaway Rated New Buy at Citi; PT 138 euros
* Kape Technologies Rated New Buy at Finncap; PT 350 pence (+)
* Red Electrica Reinstated Underweight at Morgan Stanley

>>> Call
* Bayer Settlement of More Suits Will Be Well-Received: Berenberg (+)
* Endesa Top Spanish Utilities Pick on Flexibility: Morgan Stanley
* Fuchs Has Consensus Upside; Guidance Cautious: Baader (Sept. 14) (+)
* G4S May Attract Other Suitors as Offer Puts Firm ‘In Play:’ RBC
* G4S Price Target Lifted at RBC While Deutsche Cuts Rating (1)
* Just Eat Takeaway Started at Buy as Citi Sees Good Prospects
* Leonardo Upgraded at SocGen on ‘Robust’ Outlook From Defense (+)
* Ocado’s Update on M&S Progress to Be Taken Positively: Berenberg (+)
* Polypipe’s 1H Beats, Estimates Look Conservative, Jefferies Says (+)

WWD : Is Slow Fashion the New Luxury?

Is Slow Fashion the New Luxury?
If fast fashion defined the 2010s, slow fashion may be the marker of the new decade.

Fashion, like trouser silhouettes, tends to change course once the pendulum swings too far in one direction. And if fast fashion defined the 2010s, slow fashion may be the marker of the new decade.
For years, the industry has pushed mass production and consumption at a clip so rapid that quick-turn, quick-churn fashion is now falling out of favor and making way for its more measured counterpart. COVID-19 has helped accelerate this redefinition of fashion — both luxury and at other price points — as clothing crafted with sustainability at the fore.
“The pandemic has helped foster a ‘buy less, buy better’ mentality with interest sparking in products with more value and longevity over disposable fast fashion. There has been a greater push on artisan products and items with a focus on craftsmanship, further backing the slow-fashion trend,” said Kayla Marci, market analyst at retail intelligence platform Edited. Creating exclusivity with handmade and made-to-order items is now “the ultimate luxury in the current state of mass production,” she added. “With so many new players trying to break into the market, brands with conscious and ethical products are poised to gain exposure and gel with younger consumers as they have an offer with more substance compared to traditional luxury brands.”


As defined, slow fashion is a movement toward thoughtful design, creation and consumption. It prioritizes product quality and longevity; considers minimizing waste of all kinds and maximizing social impact. It advocates for pumping the brakes on production for the sake of it, which, without an accurate sense of demand, often means more fodder for landfill.
In practice, slow fashion looks like what Agua by Agua Bendita is doing.
The luxury ready-to-wear brand founded in 2018 and produced by women artisans in Colombia, said in August — despite already putting out fewer collections than more mainstream luxury brands at just three a year — that it’s slowing its fashion cycle down even further.
“From this season onward, we will be working at a more organic pace for the sake of our creativity and, most importantly, to reduce our impact on the environment. We believe in creating pieces that can be worn and loved for years because of their timeless design and excellent quality. We want to create less, and create better,” Agua by Agua Bendita posted on its Instagram.
The move would appear bold in a fashion industry long beholden to bottom lines and retail’s constant need for newness, but it’s one the brand believes in and something buyers and shoppers alike will have to come around to. Now Agua will create just two collections a year, dividing them by drops.
“We found that collections were not living in the stores for long before they were on sale, and we didn’t find that sustainable,” Isabella Behrens, one of the brand’s creative directors, told WWD.
The aim is to have more time to create, a notion that has, in some cases, fallen by the wayside in fashion, luxury and otherwise, with a “more-faster” model in its place. And at Agua, the creation process is an intricate one.
A piece from Agua by Agua Bendita’s resort 2021 “Wallflowers Collection.” Agua by Agua Bendita
Concepts begin as a collaborative effort between the brand’s women-led leadership and a 700-strong collective of women artisans from vulnerable communities within and surrounding Medellin and the greater Antioquia region in Colombia. The artisans, part of Agua Bendita’s AB Hearts initiative, are empowered to turn their generations-old Colombian embroidery and beading techniques into their own small businesses, which means they are able to work from home to take care of their children and the households they are often heads of. Together, Agua and the leading artisans they employ distribute the work among local women. Prints are hand-painted in motifs that nod to Colombia’s culture and history, and pieces — which are largely made from linen and include embroidery or beadwork done by hand — are given to the collective of women that specializes in the type of detail work a design calls for.


Rushing the process of crafting each garment would come at a cost the brand isn’t willing to pay at the expense of its product.
“Our embroideries are quite intricate, our prints are developed internally so it takes a long time, and we found that we were also at a pace that it wasn’t sustainable to keep going and keep creating pieces that people wanted to buy and fall in love with,” said Cloclo Echavarria, the brand’s co-creative director. “We want to create less pieces and have people love them for longer, and we want to work with retailers to have a specific markdown strategy and not have our pieces be marked down at 70 percent off because it doesn’t reflect their value.”
That value extends beyond the quality of the product to Agua’s environmental impact and its efforts to minimize the label’s footprint. Only natural fibers go into rtw creations, which are digitally printed to save water and waste that would come from traditional dyeing techniques. All swimwear is made of recycled polyester from discarded plastic bottles, and then sublimation printed with water-based inks. Social impact is also part of Agua’s efforts, as it works to share value with the artisans in its supply chain. It’s a consciousness today’s consumers want from the brands they buy from.
“We have to work consciously. We are working with people, they are not machines,” said Catalina Alvarez, who founded the original swimwear-focused Agua Bendita brand with Mariana Hinestroza in 2003 before launching the luxury label. “The value that they give to every single piece, I think the consumer will value that. It’s a family behind that piece of clothing.”
Slow, considerate fashion may be one trend that shows staying power.
In its 2020 Conscious Fashion Report released in April, global fashion search platform Lyst said that over the 12 months leading up to the report, the term “slow fashion” generated more than 90 million social impressions, suggesting what it called “the beginning of a shift in shopping behaviors.”
A piece from Sika’s collection. ISHMAEL AMUZU-QUAIDOO
Another brand poised to continue picking up from that shift is Sika.
Founded and created by London-based Ghanaian designer Phyllis Taylor, the line of batik print-focused rtw is hand made and made to order in Ghana. And Taylor, it seems, may have been onto the slow-fashion movement before it had a name.
What began out of necessity after realizing the challenge of constantly pushing out new pieces for a collection alongside her other endeavors ultimately just became smart business for Taylor. She opted out of following fashion’s seasonal cycle altogether, and simultaneously refused to sign onto its ongoing excess inventory conundrum.
“I always had the luxury of being able to have a one on one with my customers…every customer is different and you can’t be sure that because you believe this color is going to work when you’re in the production process…that it’s going to translate a few weeks down the line, a few months down the line when you start producing hundreds of them,” Taylor said.
She started producing a handful of pieces at a time, seeing how they sold across her three shops in London, and then ordering more accordingly. When she moved to an online-only model, Taylor didn’t make anything before the consumer ordered at all. “I realized that the production team could just make as I take the order and there was no point in me just having them make 15 of these dresses and putting it out there just in case there’s 15 people in the world over the year that might decide on that particular style.…Also, I just don’t like the idea of having loads and loads of something.”
At Sika, there’s zero waste as well as the added luxury of having something made to order and created in a way that means no two pieces will ever be quite the same.
First, Taylor works with artisan batik-makers in Accra, Ghana, to develop the fabric designs and color schemes. The wax-resistant dyed cotton fabrics then dry on the lawn and the sun determines the ultimate color, which means the weather lends each piece its own uniqueness. The process continues from there entirely without the use of machines: the fabric is hand cut and each garment is then individually sewn.
The artisans who make Sika’s designs also earn a living wage, as do most making garments in Ghana, where instances of forced labor aren’t a part of the culture as they can be in other places that produce the world’s fashion.
“Sometimes I do think our dark history of slavery makes it just not something we do,” Taylor said of forced labor. “You don’t see people working and getting paid pittance, you don’t see children sewing anything.”
In June, when the Black Lives Matter movement suddenly drew new attention to Black-owned brands that were already making contributions of note, the uptick in Sika’s orders prompted a message on its site alerting consumers that it would take up to five weeks for their items to ship (typically, this is a 10- to 14-day process). But they ordered anyway. And they waited. In a week’s time, Sika gained 35,000 followers on Instagram.
“Companies like Amazon and some other companies that you buy today and in the evening it’s in your house have spoilt some people and they think that’s just normal — that’s just not normal. I just think there’s something special about the creation process of having someone take the time to make something special for you,” Taylor said. “I think the whole throwaway culture, it’s getting a bit played out now.”
Though slow fashion may take time to work its way through some consumers’ systems, artisan luxury brands will likely lead the charge for the change.
“Fashion has a bad reputation, but the way we see it and the way we live it, it can actually have such a big effect…such a positive impact,” Echavarria said.
As Behrens added, “It’s about being something bigger than fashion.”

WWD : Amazon Gears Up for Big Week, With London Storefront and a Luxury App

Amazon Gears Up for Big Week, With London Storefront and a Luxury App
The online giant is burrowing into the fashion world, looking to take on the likes of Net-a-porter, Farfetch and Matchesfashion.com.

LONDON — Amazon is ramping up efforts to raise its fashion — and luxury — profile with a series of projects set to make their debuts this week, including a digital storefront with London Fashion Week designers and the long-awaited launch of its luxury platform, a dedicated app showcasing brands from Europe and the U.S.

The Amazon Fashion x London Fashion Week digital storefront will offer spring 2021 collections and archival pieces across ready-to-wear, party wear, loungewear, lingerie and footwear from labels including Preen, Les Girls Les Boys, Grenson, De La Vali, Emilio de la Morena, Kat Maconie and Teija. It promises to extend the labels’ reach to “tens of millions” of customers.

An announcement is expected today.

The project is part of the wider series of initiatives known as Amazon Fashion Connects that sees the online retailer provide resources, infrastructure and delivery services to emerging and established young designers, and students, in Europe.

In France, Amazon has put money toward social and diversity scholarships, while in Italy and the U.K. it has been donating to fashion councils’ COVID-19 relief funds. In the U.S., Amazon Fashion has been working with the CFDA/Vogue Fashion Fund’s A Common Thread to support local designers impacted by the coronavirus.

In an interview, John Boumphrey, vice president of Amazon Fashion Europe, said it has been an extremely challenging year for the fashion and retail industry, “and we feel it’s important to support local businesses, particularly during this time. In the U.K. and Europe, we have some incredible homegrown talent that often doesn’t have the resources or infrastructure to be able to scale their business. This challenge has obviously been heightened by COVID-19.”

The digital storefront will be available to Amazon customers across five of its European web sites — in the U.K., Germany, France, Italy and Spain.

It will also feature links to the BFC’s Foundation Fund for the COVID Crisis, which has been handing funds to designers, and students, in need. It will also sell reusable, non-medical face masks designed by six London talents, with proceeds going to the British Fashion Council’s crisis fund and to U.K. charities.

Preen Line, the contemporary second line by designers Justin Thornton and Thea Bregazzi, will sell on the site. Thornton called it a “really great opportunity to reach a much broader audience, especially under the Amazon/London Fashion Week umbrella.”

Boumphrey said the company was pleased with the response to the Common Threads: Vogue X Amazon Fashion digital storefront for the U.S., with “many designers continuing to replenish inventory and to add more selection,” adding the success of that project led to Amazon’s initiative with the BFC.

Boumphrey said Amazon is happy to do the heavy lifting for smaller fashion houses.

“Things like storage, customer service and returns handling can take a huge amount of time for a small business,” he said, adding that designers are able to choose from different fulfillment options: They can send the stock to Amazon’s warehouses for picking, packing and shipping or keep their stock and work with one of Amazon’s partner couriers to deliver within the Prime service timeframe.

Amazon Prime has 150 million paying customers worldwide. In the U.S., about two-thirds of all Amazon customers are Prime members.

Amazon is also taking care of back-office management and marketing for the project, with designers being given their own account manager, and the chance to create bespoke video content and editorial imagery that will be published on Amazon’s Instagram, Pinterest and Facebook social channels.

Boumphrey said Amazon has been working with influencers to create “unique” content to promote the designers and their collections, and investing in a number of onsite, paid placements and dedicated newsletters.

Boumphrey recently was named Amazon’s new U.K. country manager, having joined the company nine years ago as director of media in the U.K. He’ll start the new role in mid-November. In his current role leading Amazon Fashion in Europe, he and his team have launched new fashion brands and programs, including Prime Wardrobe, Stylesnap and The Drop.

The digital storefront will remain live for the duration of London Fashion Week, which runs from Sept. 18 to 22, but Boumphrey said Amazon hopes to continue working with the local talent here, with plans for “further conversations with new designers around ways in which we can collaborate.”

He said the issues created by the pandemic won’t disappear overnight — and “we’ll continue discussions with the fashion community to find ways we can support these designers. We look forward to developing some exciting new partnerships, so watch this space.”

Separately, Amazon is understood to be launching its luxury platform on Monday, showcasing the first three designers and brands via a dedicated app. Names will continue to drop onto the app in the coming weeks.

Brands such as Fear of God and Car Shoe, owned by Prada Group, are thought to be among the dozen or so international accessories and ready-to-wear labels opening shops on the app. Both brands declined to comment.

The labels, which hail from Europe and the U.S., will operate their own concessions, with a business model that’s more similar to the Farfetch marketplace than Net-a-porter or Matchesfashion.

The brands partnering with Amazon will also have access to centralized warehousing in the U.S., operated by Amazon, and be able to lean on the tech giant’s vast delivery network.

The platform will be launched in the U.S. initially, and Amazon has been working directly with the brands’ U.S. offices and subsidiaries. Dany Keirouz, head of brands relations and development at Amazon Fashion, is understood to be heading up the project, according to a market source.

Amazon has repeatedly declined to comment about the new platform.

As WWD reported in January, Amazon planned to unveil the concessions-based luxury platform in the spring, but because of the coronavirus quarantines, the launch was pushed to September.

Amazon is understood to be giving the brands full control over the look and feel of their virtual stores, allowing them to sell as much as they please, control when or if they go on markdown, and — crucially — leverage Amazon’s speedy delivery and customer services.

As reported, sources said a sprawling warehouse is being built in Arizona to accommodate sales, while a $100 million marketing campaign is also in the works.

According to multiple sources, Amazon plans to work with these brands on TV, film and streaming projects going forward.

In a further, separate development, WWD has learned that Dundas World, the lifestyle brand designed by Peter Dundas, will be opening a shop on Amazon, also a concession, with a look and feel similar to that of its own online store. A spokesperson for Dundas declined to comment.

Since 2012, Amazon has put fashion at the top of the agenda, shifting from one approach to another looking for an opening, testing and iterating, buying companies, launching brands, mashing up trends and formats, moving ahead with some while abandoning others.

In Europe, however, it has met with resistance — at least on the luxury end as Amazon is still viewed as a mass market outlet that lacks the expertise — and chic — of rival sites such as Net, Matches and Farfetch.

Nearly two years ago, according to sources, Amazon suggested that multibrand retailers set up online shops to sell designer and luxury goods, but the idea never came to fruition.

Despite the challenges of selling during a global pandemic — and the appeal of Amazon’s subscriber base and delivery muscle — many of the luxury brands polled by WWD rebuffed Amazon’s advances, and the opportunity to sell on the luxury app. Some said they wanted to take a wait-and-see approach.

Amazon has been busy in the U.K. this month, vowing to create 10,000 new permanent roles across the country in 2020, taking its total permanent workforce here to more than 40,000.

As reported, the e-commerce platform has already added 3,000 jobs across its network of fulfillment centers, sort centers and delivery stations in the U.K. this year. The other 7,000 jobs will be placed in more than 50 sites, including corporate offices and two fulfilment centers launching in the fall in the Northeast and in the Midlands.

In addition, Amazon is creating more than 20,000 seasonal positions across the U.K. ahead of the holiday season.

Engineers, graduates, human resources and IT professionals, health and safety and finance specialists are among the roles the company said it is looking to hire in addition to the teams that will pick, pack and ship customer orders to meet growing customer demand.

>>> Stoxx 600 Pre-Market Indications

  • Fiat Chrysler (2FI TH) +4.6%
    • Fiat Shaves $3.1 Billion Off Dividend Tied to PSA Merger (3)
  • H&M (HMSB TH) +4.2%
    • H&M Says Recovery Better Than Expected, 3Q Profit Tops Ests. (1)
  • IAG (INR TH) +1.6%
  • Signify (G14 TH) +1.4%
  • BAT (BMT TH) +1.1%
    • Goldman Intl Equity Insights Adds Siemens, Exits BAT
  • BP (BPE5 TH) +1%
  • Fraport (FRA TH) +1%
  • ASML (ASME TH) +0.9%
  • HeidelbergCement (HEI TH) +0.9%
    • HeidelbergCement Raised to Buy at MainFirst; PT 65 euros
  • Glencore (8GC TH) +0.8%
    • Glencore Raised to Outperform at RBC; PT 240 pence
  • Continental AG (CON TH) -0.3%
  • Adidas (ADS TH) -0.3%
  • Fresenius SE (FRE TH) -0.4%
  • Rheinmetall (RHM TH) -0.4%
  • Deutsche Bank (DBK TH) -0.5%
    • Deutsche, SocGen, Lloyds, Santander Suffer Most in Covid-19 Cuts
  • TUI (TUI1 TH) -0.5%
  • Suez SA (SZ1 TH) -0.5%
  • Rational (RAA TH) -0.9%
    • Rational Cut to Hold at Berenberg; PT 615 euros
  • Faurecia SE (FAU TH) -1.4%
  • Carrefour (CAR TH) -5%
    • Carrefour Offering Prices 25m Shares

>>> TradeGate Pre-Market Indications

DAX:
  • Bayer (BAYN TH) +1.2%
    • Bayer Settles Thousands More Roundup Suits in Sign of Progress
  • HeidelbergCement (HEI TH) +0.9%
    • HeidelbergCement Raised to Buy at MainFirst; PT 65 euros
  • Daimler (DAI TH) +0.5%
    • Mercedes-Benz Cheated on Diesel Emissions for Years, DOJ Says
  • E.On (EOAN TH) +0.4%
    • German Holdings Round-Up: E.On, Energiekontor, Fresenius SE
  • Siemens (SIE TH) +0.3%
    • Goldman Intl Equity Insights Adds Siemens, Exits BAT
  • Deutsche Telekom (DTE TH) +0%
    • Shenandoah Telecom Falls Following Verizon’s Tracfone Deal
  • BASF (BAS TH) -0.1%
  • Infineon (IFX TH) -0.2%
  • Deutsche Bank (DBK TH) -0.3%
    • Banks Stirred by Swiss Merger Speculation: EMEA Financials Wrap
  • Deutsche Post (DPW TH) -0.3%
MDAX:
  • Fraport (FRA TH) +1.3%
  • Aroundtown (AT1 TH) +0.6%
  • Lufthansa (LHA TH) +0.4%
  • Metro AG (B4B TH) +0.4%
    • Dealmakers See $69 Billion of M&A in Year’s Busiest Weekend
  • K+S (SDF TH) +0.4%
  • Thyssenkrupp (TKA TH) -0.3%
    • Europe EAF Steel Profitability Little Changed
SDAX:
  • ADVA Optical (ADV TH) +4%
  • Borussia Dortmund (BVB TH) +2.3%
  • Deutsche Euroshop (DEQ TH) +1.5%
  • SNP Schneider-Neureither (SHF TH) +1.3%
  • Encavis (CAP TH) +0.1%
  • Steinhoff (SNH TH) Flat
  • Nordex (NDX1 TH) -0.6%

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

Asian stocks drifted Tuesday as investors turned their attention to a Federal Reserve meeting for clues on monetary policy as economies recover from the pandemic. The yuan added to gains that lifted it to the highest this year.
Japan’s stocks fell, but pared losses, and Hong Kong stocks rose after Chinese economic data showed the recovery gathering pace. Equities also climbed in South Korea and China, while Australia slipped. S&P 500 futures edged up after the benchmark gained Monday. The Nasdaq 100 Index broke a two-day slide. The dollar dipped and Treasuries were flat.
US After Hours EXLS +6.9%, NEE +6.8%, CWH +4.7%, SMG +4.6% up on bullish guidance; LEN -4.6% falls on earnings, NKLA -7.7% continues weakness

Nikkei -0.50% Hang Seng +0.58% CSI +0.69% Shanghai +0.36% Shenzen +0.53%

Eur$ 1.1893 CNH 6.7837 CNY 6.7859 JPY 105.65 GBP 1.2863 CHF 0.9068 RUB 75.1288 WTI$ 37.27 +0.03%

S&P +0.33% Nasdaq +0.41% EuroStoxx -0.18% FTSE +0.08% Dax -0.10% SMI -0.11%

Macro :
- Billionaires Line Up to Take Their Unloved Companies Private
- Germany, France Call for Easing Bank Capital, Bonus Rules: Rtrs
- Swedish Firms Resume Dividends as Covid Shock Milder Than Feared
- *CHINA AUG. INDUSTRIAL OUTPUT RISES 5.6% Y/Y; EST. 5.1%
- Steve Cohen Reaches Deal to Buy New York Mets: Sportico

Keep an eye on :
- ABI BB : Citi U.S. Survey Shows Hard Seltzers Are a ‘Hot’ Category
- ATL IM : Atlantia Protests to EU on Govt., CDP Accord at Risk: Repubblica
- AZN LN : AstraZeneca’s U.S. Trial Stays on Hold Pending U.S. Probe: Rtrs
- BAYN GY : Bayer Settles Thousands More Roundup Suits in Sign of Progress
- CABK SM : CaixaBank Weighs Offer Valuing Bankia at About EU4b: Reuters
- CA FP : Carrefour Holder CALYON to Offer 25m Shrs, Share Sale Price Guidance Set at EU13.8-EU13.9: Terms
Carrefour Offering Prices 25m Shares
- CNHI IM : SEC Is Examining Nikola Over Short Seller’s Fraud Allegations, NKLA -4%
- DOM LN : Domino’s Pizza to Create 5,000 New Jobs in U.K.: Guardian
- DAI GY : Mercedes-Benz Settles U.S Diesel Cheating Case for $1.5 Billion
- DANSKE DC : Bank Profits Fall in Denmark for Third Year as Impairments Jump
- FER SM : Ferrovial Sells Stakes in 2 Portuguese Highways for EU171m
- FCA IM : Fiat And PSA Confirm Dividend Amendment Linked to Merger
- GOOGL US : Google to Launch Pixel, Chromecast, Speaker Sept. 30: TechCrunch
- HELN SW : Helvetia First Half Business Volume CHF5.66 Bln, -5.2% Y/y
- INVP LN : Investec Plans to Cut 210 Jobs at Its U.K. Banking Division
- DEC FP : JCDecaux Aims to Cut 150-170 Jobs, AFP Reports
- LGEN LN : React News: Exclusive: L&G to sell portfolio from £2.3bn industrial fund | @JamesDBuckley https://t.co/OD5DAQZ8YU
- NTG DC : NTG: Placement of ~3.3M Existing Shares Made to Investors
- TSCO LN : Tesco to Offer Up to 50% Off in Bid to Keep Clubcard Shoppers
- VIE FP : Antin Mulling Options Given Veolia Suez Takeover Approach
- VOW3 GY : Icahn’s Navistar Presses VW to Boost Bid From $3.6 Billion (2)
- WDI GY : Wirecard Hires Three New Supervisory Board Members, BZ Says
- WOSG LN : Watches of Switzerland Holder to Offer Shares

>>> Europe : Brokers Upgrades & Downgrades -15th of September 20

>>> Up
* Bureau Veritas Raised to Buy at HSBC; PT 24 euros
* Computacenter PT Raised to 2,728 pence from 2,008 pence at Citi
* *ENDESA RAISED TO OVERWEIGHT VS EQUAL-WEIGHT AT MORGAN STANLEY
* Eurocommercial GDRs Raised to Neutral at JPMorgan; PT 15 euros
* Figeac-Aero Raised to Buy at Midcap Partners; PT 4 euros
* Fuchs Petrolub Raised to Add at Baader Helvea; PT 45 euros
* Glencore Raised to Outperform at RBC; PT 240 pence
* HeidelbergCement Raised to Buy at MainFirst; PT 65 euros
* *HYPOPORT RAISED TO BUY VS HOLD AT COMMERZBANK, PT EU550
* Inchcape Raised to Buy at Peel Hunt; PT 600 pence
* Leonardo Raised to Buy at SocGen; PT 6.50 euros
* *NATURGY RAISED TO EQUAL-WEIGHT AT MORGAN STANLEY, PT EU17
* PGS ASA Raised to Hold at Arctic Securities; PT 3 kroner
* Rio Tinto Raised to Overweight at JPMorgan; PT 6,350 pence
* Rio Tinto Raised to Equal-Weight at Barclays; PT 4,000 pence
* Servizi Italia Raised to Buy at Midcap Partners; PT 3 euros
* SGS Raised to Hold at HSBC; PT 2,350 Swiss francs

>>> Down
* Aedas Homes SA Cut to Neutral at Citi; PT 18.70 euros
* G4S Cut to Hold at Deutsche Bank; PT 170 pence
* Lectra Cut to Sell at Midcap Partners; PT 15.30 euros
* Rational Cut to Hold at Berenberg; PT 615 euros

>>> Initiation
* AO World Re-Initiated Buy at Peel Hunt; PT 249 pence
* EasyJet Resumed Hold at Liberum; PT 600 pence
* Enagas Reinstated Underweight at Morgan Stanley; PT 19 euros
* Just Eat Takeaway Rated New Buy at Citi; PT 138 euros
* Red Electrica Reinstated Underweight at Morgan Stanley

>>> Call
* Endesa Top Spanish Utilities Pick on Flexibility: Morgan Stanley
* Just Eat Takeaway Started at Buy as Citi Sees Good Prospects

FT : Klarna valued at $10bn after fresh investment for fintech

Klarna valued at $10bn after fresh investment for fintech
Silver Lake, BlackRock and GIC invest $650m in Swedish group ahead of possible IPO

Silver Lake, Singapore’s sovereign wealth fund GIC and BlackRock are investing $650m in Klarna, valuing the Swedish “buy-now, pay-later” group at more than $10bn ahead of a likely stock market listing by the most valuable private fintech in Europe.

Silver Lake, the US private equity group that has been investing heavily during the coronavirus crisis, is putting $500m into the Swedish group alone as Klarna makes a big push into the US ahead of a probable IPO there, said people familiar with the deal. It has also snapped up stakes in Airbnb, Twitter, Expedia and Reliance Retail.

The new fundraising — with investment from HMI Capital — means Klarna’s valuation has doubled in a year to $10.65bn. It was last valued in August 2019 at $5.5bn, already making it the joint most valuable private fintech in Europe, but has since enjoyed rapid growth in the US with its revenues increasing by more than a third in the first half of this year despite the pandemic.

Egon Durban, Silver Lake’s co-chief executive, said: “Klarna is one of the most disruptive and promising fintech companies in the world, redefining the ecommerce experience for millions of consumers and global retailers, just as ecommerce growth is accelerating worldwide and rapidly shifting to mobile.”

TCV, the US venture capital group, bought shares off existing shareholders as did Merian Chrysalis, Northzone and Bonnier. Existing investors in Klarna include Sequoia Capital, private equity firm Permira and China’s Ant Group.

Klarna said it would use the $650m in fresh equity to accelerate its growth, expand globally and improve its product offering.

Sebastian Siemiatkowski, co-founder and chief executive of Klarna, said: “We are at a true inflection point in both retail and finance. The shift to online retail is now truly supercharged and there is a very tangible change in the behaviour of consumers.”

He told the Financial Times last month that the Covid-19 pandemic had accelerated Klarna’s growth and that the Swedish group — founded in 2005 by him and two business school friends — was inching closer to an IPO that was likely to happen within “one or two years”.

Klarna took the idea of factoring — customers only paying when they received an invoice — and applied it to online shopping, becoming well-known for ecommerce payments first in the Nordics and Germany, then in the UK and finally in the US.

It increased the number of customers in the US six-fold in the first half of this year compared with a year earlier. It makes money by charging retailers such as Ikea, H&M, Nike and Asos fees for taking the payment risk on online buyers.

Klarna also gained a banking licence in Europe and has started offering debit cards and savings accounts in Sweden and Germany.

FT : Nvidia faces challenge of proving it is more friend than foe

Nvidia faces challenge of proving it is more friend than foe
Chip industry fears being disadvantaged once Arm is under control of their competitor

Rene Haas, head of the intellectual property group at Arm Holdings, spent much of Monday trying to reassure customers that the SoftBank-owned chip design company was not about to turn them into second-class citizens.

His efforts followed news the previous day that SoftBank had agreed to sell the UK company to Nvidia for up to $40bn, in what could end up as the semiconductor world’s biggest-ever deal.

The deal was tantamount to dropping a bomb in the middle of the chip industry. Companies that license Arm’s designs — which are used in most smartphone processors and many other devices that require chips with lower power consumption — are worried they will be “disadvantaged” once the UK group falls under the control of one of their competitors, Mr Haas admitted.

Arm’s customers may find themselves at the back of the queue when trying to get the company’s newest designs, said Mark Lippett, chief executive of chip start-up Xmos. “You’ll find Nvidia will be the first out on to the market with the latest Arm architectures,” he said.

If it can head off those worries, however, buying Arm could set the stage for Nvidia’s next big act.

The first came when it repurposed its graphics processing units (GPUs), designed for video gaming, to handle data-intensive machine-learning tasks. That propelled Nvidia past Intel two months ago to become the world’s most valuable chipmaker. With ownership of Arm, it hopes to put its chip technology at the centre of the booming artificial intelligence market, ranging from cloud data centres to the many “smart” devices that are springing up.

The consternation caused by the deal springs from Nvidia’s attempt to mix two very different business models: selling chips and licensing intellectual property for other companies to make their own.

Mr Haas concedes that other than Qualcomm — the mobile chip company whose aggressive business tactics have often antagonised others that rely on its technology — no other major chip group has ever succeeded at both.

One difficulty is the differing requirements of each when it comes to developing, documenting and testing fundamental chip technology. This will make it hard for Nvidia to license its existing IP, said Woz Ahmed, head of strategy at Imagination Technologies, the UK chipmaker.

Mr Haas, who once worked at Nvidia, said this explains why a previous attempt by the company to license its GPU architecture to mobile chipmakers failed. As a result, it will be “some time” before Nvidia opens up any of its existing technology for licensing, and even then it will start with a narrow selection, he added.

A bigger problem arises from clashing incentives. Nvidia’s business revolves around selling chips for use in high-value devices such as gaming PCs or data centre servers. That gives it good reason to make use of Arm’s latest technology first, to get an edge over rivals that depend on access to the same technology.

Jensen Huang, Nvidia chief executive, says protecting the billions it spends on buying Arm gives the company a powerful economic reason to play fair. But there has been a resounding silence from big Arm customers including Apple, Qualcomm and Broadcom, with none publicly backing the deal.

Nevertheless, most customers are expected to go along with the status quo while they wait to see whether Mr Jensen lives up to his promises, said Mr Ahmed. One reason is that they have little choice. A rival, open-source chip architecture known as Risc-V has yet to advance beyond low-value chips.

Several industry experts argue, however, that Risc-V will now attract a wave of investment from companies seeking an alternative to Nvidia. The largest Arm customers will eventually switch to designing their own chip architectures to ensure control of their technology, Mr Lippett predicted.

But even losing an Apple or a Qualcomm may not matter much if Nvidia is able to use the deal to consolidate its position in a key market — the servers used in data centres — while making itself the technology axis for a booming industry of AI-powered devices.

As Mr Huang points out, Nvidia already did the hard work of rewriting all its software code to run on Arm-based processors when it backed a Fujitsu supercomputer last year that is now the world’s fastest. That will make it an easier step now to launch a server processor of its own, directly challenging Intel.

Nvidia’s second goal with the deal is to expand its technology to an ever wider range of devices. This will be driven by the growing need for AI “inferencing”, or applying pre-trained AI models to data gathered on the fly, as many day-to-day objects develop a basic level of intelligence.

In some cases, this will involve selling new chips of its own but often, particularly in cheaper devices, Nvidia plans to adopt Arm’s business model: packaging Arm’s processor designs with its own core technologies to create integrated blueprints for other chipmakers.

By owning Arm, Nvidia will be able to align all the companies’ technologies, such as their software libraries and developer tools, to make it easier for other companies looking to build on this foundation, said Chirag Dekate, an analyst at Gartner.

If Mr Huang is right, these chip designs could become the platform for the next wave of smart consumer devices. Those might include low-priced high-definition televisions and specialised tablet devices that come with the silicon smarts of advanced gaming computers, said chip analyst Patrick Moorhead.

Longer term, many everyday devices that lack screens will need a basic level of intelligence to understand verbal instructions, said James Wang, a former Nvidia employee and now analyst at Ark Invest.

This will mean a market of “hundreds of trillions” of computers, some day, that need his company’s technology, Mr Huang enthused this week.

But the first challenge will be to persuade the chip industry that Nvidia is more friend than foe.

WSJ : Billionaire Steven Cohen Reaches Deal to Buy New York Mets

Billionaire Steven Cohen Reaches Deal to Buy New York Mets
Agreement values the team at between $2.4 billion and $2.5 billion, a record for a North American professional sports franchise

Billionaire hedge-fund manager Steven A. Cohen has reached an agreement to purchase the New York Mets from the controlling Wilpon and Katz families, the team said, in a deal that would set a new benchmark for North American sports franchise valuations.

The deal, which will become official after a vote of Major League Baseball’s owners later this autumn, values the team at between $2.4 billion and $2.5 billion, according to a person familiar with the matter.

That would be the most ever for a North American professional sports franchise, topping the $2.2 billion the NFL’s Carolina Panthers sold for in 2018 and the $2.35 billion valuation the NBA’s Brooklyn Nets achieved last year when Alibaba Group Holding Ltd. co-founder Joseph Tsai bought the portion of the team he didn’t already own.

The most expensive baseball transaction had been the $2.15 billion that Guggenheim Partners LLC CEO Mark Walter and a group of co-investors, including basketball legend Earvin “Magic” Johnson, paid for the Los Angeles Dodgers in 2012. The transaction was partly financed by a group of insurance companies associated with Guggenheim.

Should the sale for the Mets be approved, Mr. Cohen will own 95% of the team, while the Wilpon and Katz families will retain a 5% stake, the person said.

“I am excited to have reached an agreement with the Wilpon and Katz families to purchase the New York Mets,” Mr. Cohen said in a statement released by the team.

Mr. Cohen’s impending purchase ends an extended courtship that included the collapse of a previous agreement last winter and a ferocious push by a competing, star-studded group led by Alex Rodriguez and Jennifer Lopez.

In December, Mr. Cohen reached a tentative agreement to acquire the Mets in a deal that would have had current chairman Fred Wilpon remain in that position for the next five years. Jeff Wilpon, Mr. Wilpon’s son, would have continued as the team’s chief operating officer for the same period. The proposed deal unraveled in February over these control issues.

Talks breaking down with Mr. Cohen opened the door for other bidders, and the celebrity couple of Mr. Rodriguez, a former star baseball player, and Ms. Lopez, a pop star and actress, rushed in. They hoped to leverage their fame and status as cultural icons to attract a new, younger audience to baseball, a sport that has struggled with that demographic in recent years.

But Mr. Cohen, who has a net worth of more than $14 billion, wouldn’t be denied. A lifelong baseball fan who grew up in the shadow of the team’s stadium in Queens, Mr. Cohen long dreamed of owning his beloved Mets. He already owns a minority share of the franchise.

Mr. Cohen comes with baggage. His former firm, SAC Capital Advisors LP, pleaded guilty to insider trading in 2013 and agreed to pay a record fine of $1.8 billion. He later reached a civil settlement with the Securities and Exchange Commission that restricted him from serving as the supervisor of a registered fund until 2018. He didn’t admit or deny wrongdoing as part of the civil settlement. Mr. Cohen’s firm is now known as Point72 Asset Management LP.

Once he assumes control, Mr. Cohen is expected to spend aggressively on talent in the hopes of turning the Mets into a perennial contender and competing for attention with their more popular cousin in the Bronx, the Yankees. The Mets haven’t won a championship since 1986, though they have appeared in the World Series twice since, most recently when they fell to the Kansas City Royals in 2015. They have a losing record again this season and are unlikely to qualify for the playoffs.

Mets fans have anticipated the arrival of Mr. Cohen—and his fat bank account—for months, particularly given the financial issues that have plagued the Wilpons for years. Despite playing in baseball’s most lucrative media market, the Mets’ payroll dropped dramatically in the wake of the family’s difficulties stemming from Bernard L. Madoff’s fraud.

In 2010, Mr. Wilpon was named in a lawsuit by Irving Picard, the court-appointed trustee for Mr. Madoff’s firm. The Mets owners settled the lawsuit two years later for $162 million and a pledge that Mr. Picard would drop his claims that they were “willfully blind” to signs that Mr. Madoff was carrying out a fraud.

The Wilpon family’s real-estate firm, Sterling Equities, will develop Willets Point, the land around the Mets’ stadium, with Mr. Cohen getting a small piece of the property, according to a person familiar with the matter.

The family is also keeping SNY, the television network associated with the team, whose proceeds could aid the family in offsetting pandemic-related losses at the team, the person said.