-
Fresenius SE (FRE TH) +3.9%
- Fresenius SE First Quarter Sales EU9.1 Bln, Est. EU8.93 Bln
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ISS (QJQ TH) +2.7%
- ISS 1Q Rev Up 2.4%; ‘Significant’ Virus Impact End of Quarter
- Novo Nordisk (NOVC TH) +2.4%
- Novo Nordisk Keeps 2020 Forecast; 1Q Beats Estimates (1)
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Rational (RAA TH) +1.9%
- Rational First Quarter Ebit EU26.0 Mln
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Dialog Semi (DLG TH) +1.6%
- Dialog Semi Sees Second Quarter Rev. About $260 Mln to $290 Mln
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Fresenius Medical (FME TH) +1.4%
- Fresenius SE First Quarter Sales EU9.1 Bln, Est. EU8.93 Bln
- ArcelorMittal (ARRD TH) +1.4%
- Rolls-Royce (RRU TH) +1.3%
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Fraport (FRA TH) +1.2%
- Fraport Has First Loss Since 2001, Recovery Will Take Years (1)
- United Internet (UTDI TH) -0.9%
- Siemens Healthineers (SHL TH) -0.9%
- Deutsche Bank (DBK TH) -1%
- Commerzbank (CBK TH) -1.1%
- Sartorius (SRT3 TH) -1.1%
- Bechtle (BC8 TH) -1.1%
- Carnival Plc (POH1 TH) -1.2%
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VW (VOW3 TH) -1.3%
- Qatar Wealth Fund Said to Seek $7.6 Billion Loan Backed by Stock
- MTU Aero (MTX TH) -1.6%
- ING (INN1 TH) -1.6%
DAX:
- Fresenius SE (FRE TH) +4.1%
- Fresenius SE First Quarter Sales EU9.1 Bln, Est. EU8.93 Bln
- Fresenius Medical (FME TH) +1.7%
- Fresenius SE First Quarter Sales EU9.1 Bln, Est. EU8.93 Bln
- BMW (BMW TH) -0.4%
- BMW 1Q Ebit EU1.38b Versus EU589m in 1Q 2019 (1)
- Infineon (IFX TH) -0.5%
- Daimler (DAI TH) -0.5%
- BASF (BAS TH) -0.5%
- VW (VOW3 TH) -0.9%
MDAX:
- Hannover Re (HNR1 TH) +2.1%
- Hannover Re First Quarter Net Income EU300.9 Mln, +2.5% Y/y
- Hella (HLE TH) +1.5%
- Fraport (FRA TH) +1.3%
- Fraport Has First Loss Since 2001, Recovery Will Take Years (1)
- Hochtief (HOT TH) +1%
- Aroundtown (AT1 TH) +0.8%
- HelloFresh (HFG TH) -0.4%
- HelloFresh Converts Offer 27.5% to 40% Conversion Premium: Terms
- Siemens Healthineers (SHL TH) -0.7%
- GEA Group (G1A TH) -0.8%
- Fuchs Petrolub (FPE3 TH) -2.5%
SDAX:
- Jenoptik (JEN TH) +3%
- Jenoptik Sees Meeting FY Estimates; Prelim 1Q Adj Ebitda EU17m
- Takkt (TTK TH) +2.8%
- Corestate (CCAP TH) +2.6%
- Corestate Roadshow Scheduled By Hauck & Aufhaeuser for May 13
- Steinhoff (SNH TH) +2.6%
- Schaeffler (SHA TH) +2.5%
- Schaeffler First Quarter Revenue EU3.28 Bln, Est. EU3.31 Bln
- Aixtron (AIXA TH) -0.8%
- Aixtron Conference Call Scheduled By Liberum for May 6
>>> Up
* Assura Raised to Add at Peel Hunt
* BB Biotech Raised to Add at Baader Helvea; PT 68 Swiss francs
* British Land Raised to Buy at Peel Hunt
* CLS Holdings Raised to Buy at Peel Hunt
* Eurofins Scientific Raised to Neutral at Exane; PT 490 euros
* Hiscox Raised to Buy at Jefferies; PT 850 pence
* Land Sec. Raised to Add at Peel Hunt
* LondonMetric Raised to Add at Peel Hunt
* Michelin Raised to Add at AlphaValue
* Scout24 Cut to Equal-Weight at Morgan Stanley; PT 62 euros
* Stroeer Raised to Overweight at Morgan Stanley; PT 69 euros
* ThyssenKrupp Raised to Buy at Baader Helvea; PT 7.50 euros
* Wacker Chemie Raised to Buy at MainFirst; PT 73 euros
>>> Down
* Ambu Cut to Neutral at JPMorgan; PT 219 kroner
* Capital & Counties Cut to Add at Peel Hunt
* Capital & Regional Cut to Reduce at Peel Hunt
* Derwent London Cut to Hold at Peel Hunt
* Elior Group Cut to Add at AlphaValue
* Grainger Cut to Add at Peel Hunt
* Great Portland Cut to Reduce at Peel Hunt
* Hammerson Cut to Reduce at Peel Hunt
* Helical Cut to Add at Peel Hunt
* Intu Cut to Sell at Peel Hunt
* Kering Cut to Hold at Jefferies; PT 505 euros
* NewRiver Cut to Hold at Peel Hunt
* Nordic Mining Cut to Neutral at Clarksons Platou
* Richemont Cut to Add at AlphaValue
* Safestore Cut to Hold at Peel Hunt
* Segro Cut to Reduce at Peel Hunt
* Shaftesbury Cut to Reduce at Peel Hunt
* TOMRA Cut to Sell at SEB Equities; PT 270 kroner
* Town Centre Securities Cut to Add at Peel Hunt
* UniCredit Cut to Neutral at Banca Akros (ESN)
* Unite Group Cut to Hold at Peel Hunt
* Wirecard Cut to Equal-Weight at Barclays; PT 200 euros
* Workspace Cut to Reduce at Peel Hunt
>>> Initiation
* Encavis Rated New Buy at MainFirst; PT 14.30 euros
* Flatex AG Rated New Buy at Jefferies; PT 43 euros
* Neoen Rated New Hold at MainFirst; PT 33.30 euros
>>> Call
* Kering Cut at Jefferies on Limited Upside and Tough Months Ahead
* Hugo Boss Still ‘Looks Cheap,’ Online Business Strong: Jefferies
* Thyssenkrupp a ‘Risky Deep Value Play,’ Raised to Buy: Baader
* U.K. Real Estate Faces Choppy Waters, Retail Most Hit: Peel Hunt
U.S. equity futures erased losses and European contracts retreated, while China’s yuan rose in offshore trading after a slightly stronger-than-anticipated fixing for the domestic exchange rate.
Stocks in Shanghai recovered to trade little changed after opening modestly lower as Chinese traders came back online after a five-day break. Australian shares fell, while Hong Kong and Korean ones advanced. Japan was shut. Oil prices snapped five days of gains, while the yen climbed to the highest since mid-March, back when markets were roiled by emergency demand for dollar cash. Treasuries opened little changed in London.
US After Hours MELI +15.9%, BYND +6%, ATVI +5.4% up on earnings; PINS -16.5%, MAT -9.4%, EA -4.3%, DIS -2.8% are weaker on earnings
Nikkei -2.84% Hang Seng +1.17% CSI +0.22% Shanghai +0.29% Shenzen +1.11%
Eur$ 1.0822 CNH 7.1052 CNY 7.0907 JPY 106.38 GBP 1.2424 CHF 0.9736 RUB 73.58 TRY 7.0868 WTI$ 24.24 -1.30%
S&P +0.57% EuroStoxx -0.32% FTSE -0.27% Dax -0.36% SMI +0.04%
Macro :
- ECB Fully Committed to Inflation Mandate After German Ruling
- Qatar Wealth Fund Said to Seek $7.6 Billion Loan Backed by Stock
- Hedge Fund Westbeck Surges 44% in April After Epic Oil Crash
- European Banks Seek Sovereign Debt Relief in Next Lobbying Push
- Paul Singer's Elliott Management reportedly called gold 'one of the most undervalued' assets around, as hedge funds bet big on
- German New Virus Infections Rise Before Talks on Further Easing
Keep an eye on :
- ABI BB : AB InBev’s Deal for Craft Brew Likely to Get DOJ Ok, MKM Says
- AIR FP :
- ALFEN NA : Alfen NV 1Q Adj. Ebitda EU4.6M; Can’t Give Any Further Guidance
- ALKB DC : ALK-Abello Maintains 2020 Forecast; 1Q Beats Estimates (1)
- ATC NA : ATUS Holder Canada Pension Plan Investment Board to Offer Shrs
- AMBUB DC : Virus Contagion Risk Pushes Doctors Toward Ambu Scopes, CEO Says
- APAM NA : Aperam First Quarter Ebitda EU70 Mln, -14% Y/y
- AKE FP : Arkema 1Q Ebitda Down 19% To EU300M; Co. Steps Up Cost Cuts
- AZN LN : AstraZeneca’s Farxiga Approved by FDA for Type of Heart Failure
- BIM FP : BioMerieux To Launch Two SARS-CoV-2 Antibody Tests
- BMW GY : BMW 1Q Ebit EU1.38b Versus EU589m in 1Q 2019 (1)
- BMW GY : BMW Joins Car Peers With Warning of Coronavirus Profit Slump
- CNHI NA : Class 8 Truck Orders Fell 72% Y/y in April, Jefferies Says
- ACA FP : Credit Agricole Sees Provision Surge as Bank Girds for Bad Loans
- CSGN SW : Credit Suisse Lures Traders to an Oil Bet Linked to Battered USO
- DAI GY : Mercedes-Benz Fined 77.6b Won by S. Korea Over Diesel Emissions
- DANSKE DC : Danske Bank Seizes on Bond Market Thaw to Raise $1.1 Billion
- DLG GY : Dialog Semi Sees Second Quarter Rev. About $260 Mln to $290 Mln
- ELG GY : Elmos Semi First Quarter Ebit EU7.1 Mln, -17% Y/y
- EUCAR FP : Europcar 1Q Net Loss EU105M vs Year-Earlier Loss EU67M
- FCA IM : Fiat Chrysler Loss Shrugged Off on Relief PSA Deal Unchanged
- FSKRS FH : Fiskars First Quarter Revenue EU256.2 Mln, -4.6% Y/y
- FRA GY : Fraport Has First Loss Since 2001, Recovery Will Take Years (1)
- FRE GY : Fresenius SE First Quarter Sales EU9.1 Bln, Est. EU8.93 Bln
- FME GY : Fresenius Medical First Quarter Ebit EU555 Mln
- HNR1 GY : Hannover Re First Quarter Net Income EU300.9 Mln, +2.5% Y/y
- HFG GY : HelloFresh Converts Offer 27.5% to 40% Conversion Premium: Terms
- HSX LN : Hiscox Equity Offering Orders Below 650p Each Risk Missing Out
- INTRUM SS : Intrum First Quarter Adjusted Ebit SEK1.10 Bln, -19% Y/y
- ISS DC : ISS First Quarter Revenue DKK19.13 Bln
- JEN GY : Jenoptik Sees Meeting FY Estimates; Prelim 1Q Adj Ebitda EU17m
- LAND SW : Landis+Gyr Skips Guidance, Defers Dividend Amid Hazy Outlook
- LNZ AV : Lenzing Scraps 2019 Dividend, 2020 Outlook Remains Suspended
- LLOY LN : Lloyds Lends $1.25 Billion to Small Firms Under Virus Program
- NETC DC : Netcompany Maintains Full Year Adjusted Ebita Margin About 26%
- NEOEN FP : Australia’s Biggest Solar Farm Gets Green Light After Power Deal
- NOEJ GY : Norma First Quarter Adjusted Ebita EU27.1 Mln, -32% Y/y
- NOVOB DC : Novo Nordisk Keeps 2020 Forecast; 1Q Beats Estimates (1)
- OCDO LN : Ocado Investors Recommended to Vote Against CEO Pay: The Times
- OCY NO : Ocean Yield First Quarter Dividend Per Share 5.0c Vs. 19.1c Q/q
- ORP FP : Orpea First Quarter Revenue EU981 Mln
- ONTEX BB : Ontex First Quarter Adjusted Ebitda EU66.0 Mln, +25% Y/y
- QIA GY : Qiagen Expects 12% Sales Growth in 2Q on Constant Exchange Rates
- RAA GY : Rational First Quarter Ebit EU26.0 Mln
- RMG LN : Cites takeover speculation following Czech billionaire Daniel Kretinsky’s disclosure of a stake on Friday)
- SCHA NO : Schibsted First Quarter Ebitda NOK700 Mln, -18% Y/y
- STLN SW : Schmolz + Bickenbach First Quarter Adj Ebitda Loss EU6.1 Mln
- SGRE SM : Siemens Gamesa 2Q Underlying Ebit EU33 Mln, -81% Y/y
- SOLB BB : Solvay First Quarter Adj Ebitda EU569 Mln, Est. EU502.8 Mln
- SSE LN : SSE Reports Contracts for 604MW of De-Rated Generation Capacity
- O2D GY : Telefonica Deutschland 1Q Adj. OIBDA +1.6% Y/y; Confirms FY View
- FP FP : Total Committed to Boost Dividend When Oil Rebounds, CEO Says
- UCG IM : UniCredit 1Q Loss EU2.71b on Yapi Stake Sale, Job Exit Charges
- VIE FP : Veolia 1H Current Ebit Down 19%; Plans Extra EU200M Savings
- VCT FP : Vicat First Quarter Like-for-like Sales +0.2%
- VOW3 GY : Class 8 Truck Orders Fell 72% Y/y in April, Jefferies Says
- WDI GY : Large Wirecard Holder Tells Board to Appoint New Managers: FT
Closing Stock Market SummaryThe S&P 500 rallied as much as 2.0% on Tuesday, as investors continued to buy into the reopening narrative, but stocks pared gains late in the day to leave the benchmark index up 0.9% for the session. The Nasdaq Composite increased 1.1%, the Dow Jones Industrial Average increased 0.6%, and the Russell 2000 increased 0.8%.
Positive reopening news included California announcing plans to reopen parts of its economy as early as Friday, joining a growing list of U.S. states to have already opened or outlined plans. Starbucks (SBUX 72.90, +1.01, +1.4%) said it expects to have 85% of its U.S. stores open again by the end of the week, excluding dine-in service.
The market might have gotten ahead of itself, though, as the news flow didn't provide it any new revelations. Neither did a CNBC interview with Fed Chair Clarida, but the market lost steam shortly after the interview, perhaps reminded of the relatively high asset prices given the uncertainty still facing an economic recovery/reopening.
The S&P 500 financials sector (-0.1%) slipped into negative territory amid the late-session decline, while the health care sector (+2.2%) was minimally affected. The reopening enthusiasm still buoyed oil prices ($24.53/bbl, +4.16, +20.4%) by 20% amid expectations for a demand recovery.
The health care space received a sentiment boost by news that Pfizer (PFE 38.51, +0.89, +2.4%) and BioNTech SE (BNTX 50.00, +4.22, +9.2%) dosed their first U.S. patients in a clinical trial of a potential COVID-19 vaccine.
The market, conversely, continued to dismiss the dose of bad news, presumably due to a view that it's old news and more good news will follow with increased reopening efforts.
Notably, the ISM Non-Manufacturing Index for April fell into contraction territory with a 41.8% reading (consensus 38.5%), United Airlines (UAL 24.12, -1.14, -4.5%) warned it will likely cut 30% of its management and administrative staff in October, and Norwegian Cruise Line Holdings (NCLH 11.18, -3.26, -22.6%) expressed "substantial doubt" about its future.
U.S. Treasuries ended the session little changed. The 2-yr yield was unchanged at 0.17%, and the 10-yr yield increased two basis points to 0.66%. The U.S. Dollar Index increased 0.3% to 99.78.
Reviewing Tuesday's economic data:
- The ISM Non-Manufacturing Index for April dropped to 41.8% (consensus 38.5%) from 52.5% in March. A number below 50.0% is indicative of contraction. The April reading was the lowest reading for the index since March 2009.
- The key takeaway from the report is that, like the ISM Manufacturing Index, it was not as "good" as the headline number suggests given that there was a spike in the Supplier Deliveries Index (to all-time high 78.3% from 62.1%), which is largely indicative of supply problems due to the COVID-19 impact.
- The Trade Balance report for March showed a widening in the deficit to $44.4 billion (consensus -$44.2 billion) from an upwardly revised $39.8 billion (from -$39.9 billion) for February. Exports were down $20.0 billion from February while imports were down $15.4 billion.
- The widening in the deficit was the result of exports declining more than imports, yet the key takeaway is that the large declines in both reflect weak trade activity in the wake of COVID-19 shutdown issues that only got worse in April.
Looking ahead, investors will receive the ADP Employment Change Report for April and the weekly MBA Mortgage Applications Index on Wednesday.
- Nasdaq Composite -1.8% YTD
- S&P 500 -11.2% YTD
- Dow Jones Industrial Average -16.3% YTD
- Russell 2000 -23.7% YTD
WeWork co-founder Adam Neumann is suing SoftBank over failed $3 billion stock deal
He was set to sell $970 million in shares
WeWork co-founder Adam Neumann is suing investor SoftBank for scrapping a $3 billion stock buyout agreement. The New York Times reports that Neumann accused SoftBank of breaching its contract and “secretly taking actions to undermine” the agreement, which SoftBank abandoned last month. He’s looking to merge the case with a similar suit by WeWork’s board in April, but SoftBank has called those claims a “desperate and misguided attempt” to rewrite the deal’s history.
SoftBank agreed to bail out The We Company last year while writing off billions of dollars on an investment due to WeWork’s unprofitable and ill-advised operations. The deal included a plan to buy $3 billion worth of stock from Neumann and other shareholders. But in April, SoftBank backed out, saying that WeWork hadn’t met the conditions of its contract. It also cited legal inquiries by the US Department of Justice and the Securities and Exchange Commission. Neumann himself planned to sell $970 million in stock.
WeWork shareholders accused SoftBank of “buyer’s remorse” and sued for a “clear breach of its contractual obligations.” According to The Guardian, this latest lawsuit says that “Mr. Neumann put his trust in [SoftBank and SoftBank’s Vision Fund] to be stewards of WeWork, which he — and thousands of others — had worked so hard to build,” only to be met with “brazen” abuses.
SoftBank, conversely, said that “under the terms of our agreement, which Adam Neumann signed, SoftBank had no obligation to complete the tender offer in which Mr Neumann — the biggest beneficiary — sought to sell nearly $1 billion in stock.”
These suits don’t necessarily help WeWork’s actual financial situation, which was shaky even before the novel coronavirus devastated the world economy. The company reportedly missed rent in some locations last month, and its brand of shared workspaces could translate poorly to a post-pandemic world. Nonetheless, it has attempted to keep offices open, even as governments have required many workers to stay home.
Tom Cruise will work with NASA on first movie filmed in space, NASA says
The International Space Station will be the set
NASA is working with Tom Cruise to film the first movie shot in space, according to NASA administrator Jim Bridenstine. The details of the project aren’t clear, but Bridenstine says the film will take place aboard the International Space Station.
We don’t know yet how Cruise will be participating in the adventure, but he’s well-known for performing increasingly impressive stunts in his recent films, including clutching the side of an Airbus A400 as it takes off in 2015’s Mission: Impossible — Rogue Nation. It’s hard to think of a more difficult stunt to pull than making a feature film in space.
News of a possible collaboration between Cruise and NASA was first reported by Deadline. The report said that Cruise was working with SpaceX to shoot the film, though neither NASA nor SpaceX have confirmed that speculation. SpaceX did announce in February that it will launch four private citizens to orbit around Earth at the end of 2021 or in early 2022. The passengers are set to fly in SpaceX’s newly developed Crew Dragon spacecraft, which is slated to fly its first NASA astronauts to the International Space Station later this month.