TheChek News Flow

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

MATX +19.9% (guides Q2 EPS above consensus), GBX +12.8%, SLP +8% (also files mixed shelf offering), PSMT +5.8%, IART +3.6% (guides Q2 revs slightly below consensus)

Other news:

ZIOP +4.6% (announces the initiation of a phase 1 trial to evaluate CD19-specific CAR-T using its RPM technology)

EGO +2.9% (reports preliminary Q2 production of 137,782 gold ounces)

VXX +1.3% (early strength with futures trading lower)

EXPR +0.7% (Express provides update on its current business and latest store reopening plans - 95% of the company's stores are open and showing sequential improvement)

Analyst comments:

BCS +3% (upgraded to Buy from Hold at Investec)

SNBR +2.6% (upgraded to Overweight from Neutral at Piper Sandler)

ALV +2.2% (initiated with a Buy at Goldman)

NFLX +1.6% (target raised to Street-high $670 from $540 at Goldman)

CAL +1.3% (upgraded to Positive from Negative at Susquehanna)

FL +1.1% (upgraded to Positive from Neutral at Susquehanna)

HOG +1% (upgraded to Sector Perform from Underperform at RBC Capital Mkts)

RTX +1% (upgraded to Buy from Hold at Vertical Research)

>>> US Early premarket gappers

Early premarket gappers

Gapping up:
MATX +18.1%, GBX +15.1%, SLP +9.9%, ZIOP +7.1%, PSMT +5.8%, IART +3.6%, EXPR +2.7%, EGO +1.5%, VXX +1.5%, TSM +0.6%, HL +0.5%

Gapping down:
CNTG -12%, WDFC -4.2%, UAL -3.8%, FC -3%, MRNS -2.1%, HA -1.2%, XLE -1.2%, KBH -0.8%, IWM -0.7%, DIA -0.6%, SPY -0.4%, QQQ -0.4%

FT : IEA warns rise in Covid-19 cases ‘casting a shadow’ over oil recovery

IEA warns rise in Covid-19 cases ‘casting a shadow’ over oil recovery

Global oil supply fell by 2.4m barrels a day in June to a nine-year low

The resurgence of coronavirus cases in several parts of the world is “casting a shadow” over the oil market’s nascent recovery, the International Energy Agency has warned.

“In some countries, [the] accelerating number of Covid-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside,” the Paris-based body said in its monthly oil outlook.

Brent crude, the international oil marker, dropped below $20 a barrel in late March to an 18-year low. It has since rebounded to above $41 a barrel as supply curbs by major producer countries coincide with a demand recovery.

Yet worries about new cases of coronavirus and how this might affect any economic recovery and the outlook for fuel demand has kept prices in check. On Friday Brent fell more than 2 per cent to $41.39 a barrel.

Hong Kong suspended classes in schools again amid a resurgence in locally infected coronavirus cases over the past few days. In the US, meanwhile, more than 60,500 new cases were reported on Thursday in a new daily record.

“The recent increase in Covid-19 cases and the introduction of partial lockdowns introduces more uncertainty to the forecast,” the IEA said.

Global oil supply fell by 2.4m barrels a day in June to a nine-year low of 86.9m b/d. Production curbs from Opec and allies including Russia are taking place in conjunction with declines from other countries such as the US and Canada.

Since April, output has fallen by 14m b/d, the IEA said, but supply is expected to recover. Overall it is projected that worldwide supply could fall by 7.1m b/d in 2020 before rising by 1.7m b/d in 2021.

Global oil demand fell by a less than initially expected 16.4m b/d in the second quarter as governments imposed lockdowns and travel bans to curtail the spread of coronavirus. This is down from pre-crisis levels of about 100m b/d.

As demand recovers in countries such as China and India, over the course of 2020 these declines are expected to average 7.9m b/d and 5.3m b/d in 2021.

Concerns also persist about the elevated levels of oil stockpiles as demand for petrol, diesel and other refined fuels dropped earlier this year.

“If we take a bigger picture view of the market, what stands out to us is that we have not yet seen much of a decline on the global inventory front,” said analysts at JBC Energy.

FT : UAE shoots for Mars in Arab world’s first space mission

UAE shoots for Mars in Arab world’s first space mission

Emirates pin diversification hopes on space gamble as critics fear odyssey is a vanity project

The first ever probe to make a soft landing on Mars touched down the same day in 1971 that the United Arab Emirates was formed.

Now almost half a century after the Soviet Union’s Mars 3 lander, the wealthy emirate is aiming to send its own satellite — the Arab world’s first — into orbit around the red planet in time for its golden anniversary.

“Arab civilisation once played a great role in contributing to human knowledge, and will play that role again,” Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum said of the mission that is set to blast off on July 14. “Set no limits to your ambitions and you can reach even to space,” he added.

The $200m project to launch the probe — named Al Amal, or “hope” — is the culmination of six years of work by Emirati and US scientists. It is part of a broader $5.4bn investment in the emerging space industry that it is hoped will spur development in an economy hit by the oil price crash and the coronavirus pandemic.

Abu Dhabi, the UAE capital, has struggled to shed the hydrocarbon dependence that underpins the Arab federation. Dubai, the region’s commercial centre, is particularly exposed to the downturn because of a reliance on trade, travel and tourism.

“This has created opportunities for scientists,” Sarah Al Amiri, the mission’s science lead and UAE minister of state for advanced sciences, said of the project. Omran Sharaf, the mission’s project director, added: “We want to inspire the UAE and the Arab youth to go into STEM (science, technology, engineering and mathematics).”

A team of 75 Emiratis are working on the mission along with American universities, including the University of Colorado at Boulder, where the orbiter was built. Eight of the Emirati team of 10 scientists are women. Ms Al Amiri said the Mars project was an inspiration for the rising number of Emiratis, especially women, who were moving into science and engineering.

The project was almost derailed as the threat of lockdowns prompted the early dispatch of the craft — via air, land and sea — to the launch site off the southern tip of Japan. “We rejigged our planning to prepare for worst-case scenarios. There was a real risk that, after six years of work, we could end up missing our launch window,” said Mr Sharaf. On the Soviet mission five decades ago, the Mars lander stopped transmission within seconds.

Yet with the two teams now in place in Dubai and Japan, the final steps are under way. After blasting out of the earth’s atmosphere, the craft will deploy solar panels to power its seven-month journey at 121,000km an hour, reaching Mars by February 2021.

The mission’s scientific goals are to monitor the planet’s weather dynamics and to correlate that with climate change and loss of atmosphere in the Martian environment. But the broader aim remains to cement the economic move into new advanced sectors.

“We need our mindset to shift away from services, oil and tourism to one based on science and technology,” said Ms Al Amiri, adding that the virus had only highlighted the necessity for change. “This pandemic proves we need to diversify our efforts,” she added.

Still, with businesses in the UAE complaining about limited government support as they struggle to cope with the pandemic, some worry about the economic cost for what could turn out to be a vanity project.

“I think it is a genuine attempt to contribute positive scientific knowledge, obviously with a bit of prestige for added measure,” said Michael Stephens, an associate fellow at RUSI, the defence and security think-tank. “Whether that will translate into Emiratis themselves understanding and innovating is another matter.”

>>> Europe : Brokers Upgrades & Downgrades - 10th of July 2020 - V2(+)

>>> Up

* Barclays Raised to Buy at Investec (+)

* BMW Raised to Buy at Pareto Securities; PT 69 euros

* Covestro Raised to Hold at Bankhaus Metzler; PT 32 euros

* Kvaerner Raised to Buy at SEB Equities; PT 10 kroner

* NKT Raised to Buy at Goldman; PT 173 kroner

* SES GDRs Raised to Buy at Goldman; PT 9.50 euros

* Tikkurila Raised to Buy at SEB Equities; PT 16.50 euros

* Unite Group Raised to Buy at Stifel; PT 1,000 pence (+)

>>> Down

* Compass Cut to Add at AlphaValue

* Covestro Cut to Reduce at Baader Helvea; PT 34 euros

* Daimler Cut to Sell at Pareto Securities; PT 30 euros

* Devoteam Cut to Hold at SocGen; PT 104 euros (+)

* Dufry Cut to Sell at MainFirst; PT 16 Swiss francs

* *GALAPAGOS CUT TO HOLD VS BUY AT STIFEL, PT $193 VS $298

* GEA Group Cut to Neutral at Goldman; PT 27 euros

* IAG Cut to Reduce at Oddo BHF (+)it looks l

* JDE PEET'S Rated New Hold at HSBC; PT 38 euros

* Kindred GDRs Cut to Hold at SEB Equities; PT 64 kronor

* L'Oreal Cut to Sell at Berenberg; PT 241 euros

* Novozymes Cut to Sell at SEB Equities; PT 340 kroner

* Puma Cut to Hold at Pareto Securities; PT 69 euros

* RSA Cut to Hold at HSBC; PT 455 pence

* Software AG Cut to Equal-Weight at Barclays; PT 33.50 euros

* Spire Healthcare Cut to Equal-Weight at Morgan Stanley

* Thales Cut to Add at AlphaValue

* TeamViewer Cut to Equal-Weight at Barclays; PT 53 euros

* Vistry Group Cut to Neutral at Citi; PT 785 pence

>>> Initiation

* Autoliv Reinstated Buy at Goldman; PT $81

* Deutsche Wohnen Rated New Hold at LBBW; PT 43 euros (+)

* Instone Real Estate Rated New Buy at MainFirst; PT 37 euros

* Kojamo Rated New Underweight at Barclays; PT 19 euros (+)

* SOITEC Rated New Buy at SocGen; PT 135 euros

* Wallenstam Rated New Overweight at Barclays; PT 129 kronor (+)

>>> Call

* Covestro 2021 Estimates Still Too Ambitious, Baader Downgrades

* Covestro’s Polycarbonates Unit Underestimated, Metzler Upgrades (+)

* Dufry Cut to Sell, Street-Low PT at MainFirst on Covenant Risk (+)

* EMS-Chemie 1H ‘Better Than Feared,’ Baader Says (+)

* 5G Momentum Remains Positive, Ericsson the Top Pick, Citi Says

* Gym Group Investors to Take Reopening News Positively, Citi Says

* Halfords Valuation ‘Utterly Compelling’ After Plunge: Peel Hunt (+)

* Time to Take Profits on L’Oreal, Berenberg Says, Cutting to Sell

* Vistry Short-Term Upside Less Compelling, Citi Cuts to Neutral

* Wallenstam Preferred Within Nordic Residential at Barclays (+)

>>> TradeGate Pre-MArket Indications

DAX:

Wirecard (WDI TH) +4.8%
- Wirecard Bank Said Courted by 17 Parties Beyond Deutsche Bank
Daimler (DAI TH) -0.7%
- Daimler Cut to Sell at Pareto Securities; PT 30 euros
Bayer (BAYN TH) -1.3%
- Bayer Accused of Underreporting Contraceptive Issues to FDA (1)
Deutsche Bank (DBK TH) -1.6%

MDAX:

Qiagen (QIA TH) +1.8%
Telefonica Deutschland (O2D TH) +1.2%
Duerr (DUE TH) +0.5%
Freenet (FNTN TH) +0.4%
Thyssenkrupp (TKA TH) +0.3%
Airbus (AIR TH) -0.5%
Lufthansa (LHA TH) -0.8%
TeamViewer (1UD TH) -1.2%
- TeamViewer Cut to Equal-Weight at Barclays; PT 53 euros
Commerzbank (CBK TH) -1.6%
- Commerzbank Outgoing CEO’s Plan Would See Bank Draw Down Capital
GEA Group (G1A TH) -2%
- GEA Group Cut to Neutral at Goldman; PT 27 euros

SDAX:

Nordex (NDX1 TH) +5%
- Nordex Gets Supply and Install Order for 312MW Spanish Wind Farm
Instone Real Estate (INS TH) +2.6%
- Instone Real Estate Rated New Buy at MainFirst; PT 37 euros
Deutz (DEZ TH) +2.3%
Draegerwerk (DRW3 TH) +1.7%
Hornbach Holding (HBH TH) +1.6%
Bilfinger (GBF TH) -1.2%
LPKF (LPK TH) -3%

>>> Stoxx 600 Pre-MArket Indications

Rolls-Royce (RRU TH) +3.5%
- Stock fell 11% yesterday
Games Workshop (G7W TH) +2.5%
- Stock trades near all-time high
Qiagen (QIA TH) +2%
BP (BPE5 TH) +1.3%
Carnival Plc (POH1 TH) +0.9%
BNP Paribas (BNP TH) -1%
Worldline (WO6 TH) -1%
TeamViewer (1UD TH) -1.2%
Lufthansa (LHA TH) -1.4%
- H.K. Set to Shut Schools; Australia Limits Travel: Virus Update
Bayer (BAYN TH) -1.4%
- Bayer Accused of Underreporting Contraceptive Issues to FDA (1)
Deutsche Bank (DBK TH) -1.5%
Puma (PUM TH) -1.6%
- Puma Cut to Hold at Pareto Securities; PT 69 euros
Commerzbank (CBK TH) -2.3%

>>> What to look at today - 10th of July 2020

Stocks slipped on Friday, paring the week’s advance as a surge in China cooled and concern resurfaced that rising coronavirus cases will hurt the global economic recovery. Treasuries and the dollar rose.

Hong Kong bore the brunt of losses, falling more than 2%, as a spike in new infections left the government set to close schools. Shares in China were also lower as selling by state-backed funds signaled authorities wanted to slow of the pace of gains following the Shanghai Composite’s eight-day winning run. Japanese shares slipped along with those in South Korea. Contracts on the S&P 500 Index fell, while the yield on benchmark Treasuries dipped below 0.6%.

“Optimism is giving way to de-risking into the weekend,” said Stephen Innes, chief global market strategist at AxiCorp. “The more uncertainty grows around the economic recovery front, the more cause for investors wanting to book profits even if volatility is not picking up that much.”

US After Hours SLP +7.6% and PSMT +6.6% up on earnings; WDFC -4.2% weak on earnings; IDC report says traditional PC market grew 11.2% yr/yr in Q2

Nikkei -0.69% Hang Seng -2.03% CSI -1.31% Shanghai -1.37% Shenzen +0.26%

Eur$ 1.1270 CNH 7.0102 CNY 7.0075 JPY 106.90 GBP 1.2583 CHF 0.9420 RUB 71.0893 WTI$ 39.06 -1.41%

S&P -0.69% NAsdaq -0.49% EuroStoxx -0.37% FTSE -0.35% Dax -0.30% SMI -0.04%

Macro :

- China Drives First Inflows to EM Funds in 21 Weeks, Citi Says

- Dutch Banks Provided EU19b in Capital Relief to Companies: NVB

- China Rally Halted After State Funds Start Selling: Macro Squawk

- Citadel Securities Says Retail Is 25% of the Market During Peaks

Keep an eye on :

- ADP FP : ADP Starts Talks With Trade Unions to ‘Adjust’ Economic Model

- ATL IM : Benettons Open to Ceding Control of Autostrade in Cap Hike: Sole

- ATRLJB SS : Atrium Ljungberg First Half Rental Income SEK1.23 Bln, -4.1% Y/y

- BAYN GY : Bayer Accused of Underreporting Contraceptive Issues to FDA (1)

- 1COV GY : Covestro 2021 Estimates Still Too Ambitious, Baader Downgrades

- DVT FP : Devoteam Founders Backed by KKR Plan EU98/Shr Bid for Devoteam

- EDPR PL : EDP Renovaveis Says First-Half Electricity Production Falls 9%

- EMSN SW : EMS-Chemie First Half Ebit CHF229 Mln, -28% Y/y

- GFS LN : G4S Leads Bids to Run U.K. Prison for GBP300m Over 10 Years: BBC

- HUBN SW : Huber+Suhner Sees 1H Net Sales 16% Below Prior-Year Period

- INGA NA : ING to Close Quarter of Dutch Bank Branch Offices: Telegraaf

- ITP FP : Interparfums Sees ‘Measured Recovery’ in Sales in 2H

- MCHN SW : MCH Group to Propose CHF104.5m Capital Raise at Aug. 3 EGM

- NOVN SW : Novartis: Enerzair Breezhaler Didn’t Meet Key Secondary Endpoint

- QIA GY : Qiagen Prelim Second Quarter Adjusted EPS Beats Highest Estimate

- RHK GY : Tele Columbus to Replace Rhoen-Klinikum in Germany’s SDAX Index

- SOA FP : Sopra Steria to Buy 94% of Sodifrance, Plans Delisting Offer

- SPI LN : Spire Healthcare Profit Restrained, But Long-Term Value, MS Says

- TC1 GY : Tele Columbus to Replace Rhoen-Klinikum in Germany’s SDAX Index

- TIT IM : Italy Said to Be In Talks to Buy Stake in Telecom Italia Network

- VIV FP : Vivendi’s Canal+ Condemned to Pay Fine for Forced Sales

- VOW3 GY : VW South Africa Head in Line to Be Skoda CEO: Automobilwoche

- WDI GY : Police Search Wirecard’s Dublin Office: FT

- WDI GY : Wirecard Bank Said Courted by 17 Parties Beyond Deutsche Bank

>>> US After Hours Summary: SLP +7.6% and PSMT +6.6% up on earning

After Hours Summary: SLP +7.6% and PSMT +6.6% up on earnings; WDFC -4.2% weak on earnings; IDC report says traditional PC market grew 11.2% yr/yr in Q2

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SLP +7.6% (also files mixed shelf offering), PSMT +6.6%, IART +3.6% (guides Q2 revs slightly below consensus)

Companies trading higher in after hours in reaction to news: ZIOP +8.9% (announces the initiation of a phase 1 trial to evaluate CD19-specific CAR-T using its RPM technology), EGO +3.4% (reports preliminary Q2 production of 137,782 gold ounces), GAIN +1.1% (GAIN and KCM Capital acquire Mason West), KBH +0.1% (files for mixed securities shelf offering)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: WDFC -4.2%, FC -3.3%

Companies trading lower in after hours in reaction to news: MRNS -0.8% (files for $250 mln mixed securities shelf offering), UAL -0.5% (S&P downgrades to 'B+' on steep demand decline due to COVID-19)

>>> Europe : Brokers Upgrades & Downgrades - 10th of July 2020