Gapping up
In reaction to strong earnings/guidance:
- GRPN +4.7%, TPX +3.1% (Q2 guidance)
Other news:
- WATT +86.4% (announces partnership with Chinese battery manufacturer Grepow Battery)
- FLGT +19.7% (receives EUA from FDA to provide at-home testing services for SARS-CoV-2)
- HOOK +12.1% (announces FDA clearance for IND application for HB-202)
- CFRX +7.5% (announces publication of the exebacase Phase 2 study results in the July 1, 2020 issue of the Journal of Clinical Investigation)
- ARI +6.4% (lowers dividend)
- PTCT +5% (announces the initiation of a Phase 2/3 clinical trial to evaluate PTC299 for the treatment of COVID-19)
- AMRN +4.5% (announces settlement with Apotex)
- YUMC +4.5% (in discussions with banks over secondary Hong Kong listing, according to FT)
- NVS +2.6% (receives FDA approval for new indication for Cosentyx)
- CHGG +2.4% (authorizes repurchase of $500 mln of stock and/or convertible notes)
- ORC +2.4% (indicated higher after declaring unchanged June 2020 monthly dividend of $0.055 per share of common stock)
- SWAV +2% (prices offering of 1,700,000 shares of its common stock at $45.75 per share)
Analyst comments:
- NKLA +4.8% (initiated with an Outperform at Cowen)
- WPP +2.5% (upgraded to Buy from Neutral at Goldman)
- AMZN +0.9% (initiated with a Buy at Needham; tgt $3200)
Early premarket gappers
- Gapping up:
- WATT +103.6%, FLGT +21.2%, AMRN +5.4%, PTCT +5%, NVS +2.5%, HRB +2.5%, GRPN +1.7%, ARI +1.3%, CHGG +0.7%, KGC +0.6%
- Gapping down:
- AVEO -10.4%, NCLH -9.7%, PRVB -7.8%, DKNG -4.5%, RCL -4.1%, GAN -3.8%, CCL -3.7%, IR -3.1%, BKI -3.1%, CUK -2.7%, ORCL -2.7%, CNST -1.4%, NSTG -1.2%, SWAV -1.1%
>>> Up
* Atlas Copco Raised to Buy at BofA (+)
* Glanbia PT Raised to 12.50 euros at Morgan Stanley
* Hermes PT Raised to 540 Euros from 480 Euros at JPM (Still Underweight) (+)
* Hill & Smith Raised to Buy at Investec; PT 1,410 pence (+)
* JM Raised to Hold at Handelsbanken; PT 220 kronor
* Pandora Raised to Buy at HSBC; PT 480 kroner
* Prosus Raised to Buy at HSBC; PT 93 euros
* Recordati Raised to Buy at Goldman; PT 51.80 euros
* RWE Raised to Buy at HSBC; PT 37 euros
* Titan Cement International Raised to Neutral at Exane
* UCB Raised to Reduce at AlphaValue
* WPP Raised to Buy at Goldman; PT 800 pence
>>> Down
* BBGI SICAV Cut to Hold at Stifel (+)
* BNP Paribas Cut to Sell at SocGen; PT 30 euros
* Continental AG Cut to Hold at LBBW; PT 90 euros
* Demant Cut to Hold at Berenberg; PT 190 kroner
* Intl Public Partnerships Cut to Hold at Stifel (+)
* Kemira Oyj Cut to Hold at Nordea (+)
* Lindt & Spruengli Cut to Sell at MainFirst
* Pharma Mar Cut to Neutral at JB Capital Markets; PT 8.10 euros
* Neste Cut to Hold at Handelsbanken; PT 36 euros
* Software AG Cut to Add at Baader Helvea; PT 36.50 euros
* Workspace Cut to Hold at Panmure Gordon; PT 763 pence (+)
>>> Initiation
* AB InBev Rated New Hold at Renaissance Capital
* Citi Resumes Clariant at Neutral as Strategy Track Needs Clarity (+)
* Keywords Studios Rated New Buy at Shore Capital (+)
* Kingspan Rated New Buy at SocGen; PT 63 euros
* Rockwool Rated New Sell at SocGen; PT 1,500 kroner
* Ubisoft Rated New Buy at Stifel; PT 80 euros
* Vontobel Resumed Market Perform at ZKB (+)
>>> Call
* Further Rotation Into Value and Cyclicals Is Warranted: Barclays (+)
* Boohoo 1Q Sales Beat Estimates, Outlook Conservative: Jefferies (+)
* Demant Now Priced More Fairly After Share Rally: Berenberg
* Getinge Set for ‘Reasonable Growth’ in 2Q, Berenberg Says (+)
* Hugo Boss New CEO’s Distant Arrival Is Not Great for Stock: Citi
* Kingfisher’s Sales Growth in Current Quarter Is Encouraging: MS (+)
* Lindt Cut at Mainfirst on Virus Pain; Consensus Seen at Risk (+)
* Short Covering Can Push Up Europe, U.K. Equities, JPMorgan Says
* RWE Top Pick in Utilities on Renewables Potential: Berenberg
* Software AG Upside Now More Limited, Cut to Add: Baader Helvea
* William Hill Placing Provides Scope to Pursue Growth: Jefferies (+)
* Workspace Likely to See Demand Dip, Panmure Gordon Cuts to Hold (+)
* WPP Raised to Buy at Goldman on Cost-Cutting Potential, Momentum (+)
Did Beijing market coronavirus cluster begin in May?
- China’s CDC chief says virus could have been circulating for weeks before latest outbreak detected
- Schools closed, residents of at-risk areas locked down and travel bans imposed as city authorities rush to contain infections
The coronavirus outbreak in a Beijing market may have started a month before the cluster became apparent, the chief of China’s disease control centre has said.
More than 1,200 flights coming in and out of Beijing were cancelled on Wednesday as infections related to the sprawling Xinfadi wholesale market continued their upwards trend, with 31 new patients reported and a further spread of cases to eastern China.
There are now 137 patients linked with the market, plus three suspected cases and a further six people who have tested positive for the disease but are yet to develop symptoms. The eastern province of Zhejiang also reported one confirmed case – a vendor from the market who was diagnosed after returning to his home in Wenling.
Online news portal Caixin reported on Wednesday that the Xinfadi cluster may have already begun in May, according to Gao Fu, director of the Chinese Centre for Disease Control and Prevention.
“It is possible that there were already a lot of asymptomatic or mild carriers during that month, and that’s why there is a high amount of the virus in the environment. This is our estimation and needs to be further verified,” Gao told a meeting on Tuesday, according to Caixin.
The Chinese capital raised its emergency response to the second highest level late on Tuesday night – less than two weeks after it was lowered – and reimposed a partial lockdown on all residents. People from“key areas” – which are defined as estates, markets or neighbourhoods with confirmed Covid-19 patients – are banned from leaving Beijing.
Party mouthpiece People’s Daily reported on Twitter that 1,255 flights were cancelled at two Beijing airports, accounting for 70 per cent of scheduled trips, on Wednesday morning. Passengers who booked train tickets in and out of Beijing have been allowed to refund tickets without fees.
Other residents have been advised not to leave the city unless absolutely necessary and must first be able to show a negative nucleic test result with the past seven days, according to Chen Bei, deputy secretary general of the Beijing municipal government.
Neighbourhoods in high and medium-risk areas have been closed and all residents must stay home and take nucleic acid tests to determine if they have been infected. No visitors will be allowed into these areas. Schools, which had partially reopened, have been ordered to switch to online learning and all universities have been closed. Entertainment venues will also shut down.
The authorities stopped short of suspending production but are encouraging businesses to adopt staggered office hours and work-from-home practices to lower the risk of transmission.
One asymptomatic patient in neighbouring Hebei province began showing symptoms and has now been confirmed to have Covid-19. China has also reported 11 new imported cases from overseas, with 10 people in Gansu who returned from Saudi Arabia and one in Sichuan province.
Hollywood mogul Jeffrey Katzenberg is resorting to unusual tactics to fend off a lawsuit against his struggling video startup Quibi, The Post has learned.
Despite publicly blasting patent infringement claims by video company Eko as meritless, Quibi has quietly hired private investigators to dig up dirt on the rival — including its founder Yoni Bloch and its billionaire backer Paul Singer, who’s bankrolling the Quibi lawsuit, sources said.
The Post has spoken with five ex-Eko employees who have fielded calls from Quibi’s private eyes in recent weeks. They say the investigators didn’t ask about the technology issues in the lawsuit and focused instead on Bloch’s management style, Eko’s work culture and internal disputes that might be brewing beneath the surface.
A techie who worked at Eko eight years ago said he was asked “if there was any shouting in the office” or if he noticed if Eko was in “financial trouble.”
“I wasn’t aware of financial problems … and the environment was great,” said this person, who asked not to be identified. “They asked if I was aware who invested in the company. I suspected that they were trying to get some dirty information,” he said. “It’s not like I was hiding anything. The phone call kept me busy while I was shopping.”
In March, Eko sued the well-funded Katzenberg startup, claiming it stole Eko’s technology for playing videos either vertically and horizontally, depending on how the user is holding the smartphone. The March 20 lawsuit alleges that Quibi employees had access to Eko’s technology through nondisclosure agreements.
Quibi, which has tapped big stars like Kevin Hart, Jennifer Lopez and Nick Jonas for its short-form videos, has denied the claims, and has asked a Los Angeles federal court judge to issue a declaratory judgment in its favor.
The dispute comes as Quibi, launched in the midst of the pandemic with a focus on under-10-minute films, struggles to sign up subscribers. In a court hearing last month, Quibi’s lawyers argued that Eko’s demands to disable the technology pending the outcome of their case would hinder its ability to sign up new customers.
Austin Beers, who worked at Eko until 2015, said he was called on June 4 by a man who explained he was working with Quibi’s lawyers.
“He asked, ‘how ethical was the company?’, ‘Did they cut any corners’ and if I knew any of the investors, particularly Paul Singer,” Beers said.
Beers, who has never met Singer, said some of the questions appeared to stem from bad reviews about Eko on Glassdoor.com. Beers acknowledged that the startup culture means long hours and that his bosses, who were Israeli, had an intense management style.
“Americans are used to a softer style, a compliment sandwich. Americans love that. Israelis think that’s bulls–t. It took me four months to realize that it’s just passion, not personal.”
Assaf Dagan, who co-founded a now-defunct startup with Bloch called Hykoo in 2015, said a man and woman called him last week asking about Bloch’s “conduct.”
The investigators also asked whether Bloch had taken the company’s storytelling technology with him to Eko — leaving Hykoo to flounder.
“There was a narrative they were digging about Yoni using this technology behind our backs,” Dagan said before dismissing the notion.
Sources say the calls came from a number associated with the W Group, a Walnut Creek, Calif., private investigation firm founded by Scott Wilcox. Neither Wilcox nor Quibi’s Morrison & Foerster lawyers replied to requests for comment.
In a statement, Quibi said: “This litigation is completely without merit, and we are using every resource at our disposal to defend against it — and will continue to do so.”
Despite TV shows like “The Good Wife” popularizing the idea of private investigators being called on every case, legal experts say it’s not common, and suggests Quibi may be seeking to undercut Eko’s claims outside of court.
“They are trying to get some dirt, to find something embarrassing to cause the other side to want to drop the lawsuit,” opined Brad Simon, a partner at Windels Marx who specializes in white-collar crime. Such “sleazy tactics” are not often looked upon kindly by judges, but they have become a strategy in “high stakes” litigations, he added.
“This is the sort of thing that happens when one side is desperate,” another lawyer, who asked not to be named, said.
-
Ryanair (RY4C TH) +2.3%
- Europe’s Airlines Dangle Summer Bargains to Unlocked Masses
- Fraport (FRA TH) +2%
- BP (BPE5 TH) +1.8%
-
Renault (RNL TH) +1.6%
- European Car Sales Show First Signs of Recovery as Dealers Open
-
Lufthansa (LHA TH) +1.3%
- Lufthansa Shareholder Thiele Increases Stake to 15%: FAZ
- Wirecard (WDI TH) +1.2%
-
RWE (RWE TH) +1.1%
- RWE Top Pick in Utilities on Renewables Potential: Berenberg
- TeamViewer (1UD TH) -1%
- ArcelorMittal (ARRD TH) -1.1%
- Scor (SDRC TH) -1.3%
- Glencore (8GC TH) -2.4%
- Lloyds (LLD TH) -2.6%
-
IAG (INR TH) -3%
- Watch Travel Stocks After Norwegian Extends Cruise Suspension
-
Carnival Plc (POH1 TH) -4.4%
- Watch Travel Stocks After Norwegian Extends Cruise Suspension
DAX:
- Lufthansa (LHA TH) +1.8%
- Lufthansa Shareholder Thiele Increases Stake to 15%: FAZ
- RWE (RWE TH) +1.3%
- RWE Top Pick in Utilities on Renewables Potential: Berenberg
- Wirecard (WDI TH) +1.1%
- SAP (SAP TH) -0.7%
MDAX:
- Fraport (FRA TH) +3%
- Varta (VAR1 TH) +1.5%
- Zalando (ZAL TH) +1.1%
- Thyssenkrupp (TKA TH) +1%
- K+S (SDF TH) +1%
- Evotec SE (EVT TH) -0.7%
- TeamViewer (1UD TH) -0.8%
SDAX:
- Steinhoff (SNH TH) +2.4%
- W&W (WUW TH) +1.8%
- Corestate (CCAP TH) +1.4%
- Bilfinger (GBF TH) +1%
- Borussia Dortmund (BVB TH) -1%
- Stratec (SBS TH) -1.5%
- Amadeus Fire (AAD TH) -1.6%