>>> TradeGate Pre-MArket Indications

DAX:
  • Munich Re (MUV2 TH) -0.7%
  • Infineon (IFX TH) -0.8%
  • Deutsche Post (DPW TH) -0.9%
  • Siemens (SIE TH) -1%
  • Lufthansa (LHA TH) -1.2%
    • Germany Faces Gloomy Year for Air Travel: Frankfurter Allgemeine
MDAX:
  • Freenet (FNTN TH) +0.8%
  • K+S (SDF TH) +0.4%
    • K+S Raised to Buy at Citi as Play on Rising Potash Prices
  • Nemetschek (NEM TH) -0.9%
  • Cancom (COK TH) -1.4%
  • Commerzbank (CBK TH) -1.4%
  • Evotec SE (EVT TH) -2.1%
SDAX:
  • Encavis (CAP TH) +1%
  • DIC Asset (DIC TH) +0.8%
  • Bilfinger (GBF TH) -0.8%
  • Jungheinrich (JUN3 TH) -1.1%
  • Deutz (DEZ TH) -1.1%
  • Aixtron (AIXA TH) -1.6%

FT : Soleimani assassination risks all-out war between US and Iran

Soleimani assassination risks all-out war between US and Iran
Liquidation of Quds commander takes Trump presidency into dangerous territory

The US air strike on Baghdad airport that killed General Qassem Soleimani, commander of the Quds Force, the elite expeditionary arm of Iran’s Revolutionary Guard, is a dramatic escalation in the shadowy war between Tehran and Washington and its allies raging across the Middle East.

It will be extremely difficult to prevent the cycle of reprisals and counter-attacks that will now almost certainly ensue from sliding into direct confrontation — and with it the risk of all-out war.

Even if contained, this escalating conflict will scatter more sparks across a region deeply scarred by war and turmoil, and add a risk premium to international oil prices that have already jumped 3 per cent a barrel on news of Soleimani’s assassination.

In ordering the strike, Donald Trump has taken his erratic presidency into treacherous territory as he seeks simultaneously to escape from the costly US history of conflict in the Middle East, to fight impeachment and to secure his re-election.

All this is without considering the cost to Iraq, caught between the bitter rivalry of the US and Iran ever since the American-led invasion of 2003, of which Tehran became the main beneficiary. The Iraq war catapulted the Shia into power in Baghdad and would subsequently enable Soleimani to forge a Shia axis across the Levant through Syria to Lebanon, an Iranian corridor from the Caspian Sea to the Mediterranean.

Soleimani, who became a Revolutionary Guard officer during the 1980-88 Iran-Iraq war in which western powers backed the Iraqi regime of Saddam Hussein that they would eventually topple, spent most of his murky career operating from the shadows.

He was thrust into the limelight after Isis over-ran swaths of Syria and Iraq in 2014, appearing on the front lines alongside pro-Iran militias created by his Quds Force, which won local kudos for pushing back the jihadi tide after the US-trained Iraqi army folded.

The Quds intervention in Syria, deploying Lebanon’s powerful Hizbollah paramilitaries as well as Iraqi Shia militia, was instrumental in shoring up Bashar al-Assad’s regime against the mainly Sunni rebellion that began with a civic uprising in 2011, until Russia’s entry in 2015 — urged by Soleimani — turned the tide of the war.

Soleimani was a gifted warlord who developed a paramilitary formula of local militias with missiles to which Iran’s Sunni opponents have had little answer, from Syria to Yemen.

Yet this military prowess has come with scant regard for legitimacy and total neglect of governance — factors behind the civic uprisings in Iraq and Lebanon. These have so rattled the theocrats in Tehran that they despatched Soleimani in recent weeks to Baghdad and Beirut to order local allies to maintain the status quo.

Until now, Iran’s response has been robust but calibrated. A sequence of rockets aimed at the US presence in Iraq throughout the autumn was more nuisance than menace — until an attack last Sunday killed an American contractor at a base near Kirkuk. Mr Trump ordered five air strikes on Iran’s Iraqi militia allies — one of whose commanders also died on Friday in the attack on Soleimani — and the Iraqi paramilitaries responded with a siege of the vast US embassy in Baghdad.

They called off the siege after penetrating the perimeter. But by then comparisons were being made with the humiliating seizure of the US embassy in Tehran after the 1979 Islamic Revolution. This is what may have prompted the strike on Soleimani, even though the Trump administration is saying it had evidence he was planning attacks on US targets.

Iran and its proxies have absorbed scores of air strikes on their fighters and assets: by Israel in Syria, the US in Iraq or Saudi Arabia in Yemen. After Mr Trump unilaterally withdrew from the 2015 nuclear containment deal Tehran struck with Washington and five other world powers, and reimposed sanctions expressly intended to destroy Iran’s economy, Iran escalated slowly.

A series of pinprick attacks on oil tankers in the Gulf was followed by a perfectly executed drone and missile assault on Saudi oil facilities in September, which temporarily took out half the kingdom’s output.

This was a deliberate demonstration of Iranian capability to which the Saudis had no response and the Trump White House did not respond — to the widespread horror of its regional allies.

The US operation at Baghdad airport, however, liquidating a commander the Iranian regime has built into a popular legend and groomed for high office, is something the Islamic Republic is near certain to respond to with multi-barrelled fury.

FT : Does streetwear have a future?

Does streetwear have a future?
Brands need to foster a sense of culture and community


Late last year when the fashion designer Virgil Abloh said that streetwear “is definitely . . . gonna die” in the 2020s, it sent shockwaves through the fashion intelligentsia.

These words, coming from the Louis Vuitton artistic director for men’s collections and founder of the cult label Off-White — who has been heralded as the folk hero of this new age in fashion — made the start of this new decade feel like streetwear’s version of the Y2K millennium bug that threatened computer chaos 20 years ago.

Yet 2020 has arrived and the genre is very much here.

The term “streetwear” itself may be outdated but the ideology won’t ever change. The genre was never solely about drops, graphic-driven sportswear or limited-edition collaborations, it was about creating a sense of community via shared cultural codes.

These codes, whether pulled from punk, hip-hop, surfing, skating or graffiti, are largely inspired by movements that are no longer subcultures but have proliferated to the point where they’ve become pop.

In a way “streetwear” is a microcosm for brands that speak a certain language and represent a community that has become much bigger. In fact, the research we have done at Highsnobiety, [the website and media brand, founded by Fischer in 2005 and known for its commentary on streetwear] on our own audience has shown us that what younger consumers demand from luxury is a real sense of culture and community.

In this way, fashion shows are not just a way for designers and labels to show their latest collections but to offer new concepts, ideas and stories in a way that has more in common with theatre and music videos.

Pop Smoke’s track “Dior,” Migos’ “Versace,” and A$AP Rocky’s “RAF”, (which references the designer Raf Simons, and features the line “please don’t touch my Raf”), show us how intertwined the fashion and hip-hop conversation have become, where knowledge about brands and cultural participation are as important as ownership.

Because of this, it is clear that luxury brands are targeting consumers who grew up with streetwear and now have an equal appreciation for luxury products.

Ironically, the decade began with a Marc Jacobs-led collaboration between Louis Vuitton and Kanye West, and it ends with Abloh, West’s former creative director, at the house.

Abloh is equipped to take Vuitton into the future because of the way he appreciates both worlds. In our latest book, he recalls seeing the cultural value of Takashi Murakami’s Vuitton monograms, and his desire for it was so strong that it was the first luxury purchase he can remember making.

The push-and-pull between streetwear and luxury has seeped into stores as well. The locked-door days of luxury boutiques is something that early streetwear and sneaker shops tried to emulate with varying success.

Mixing such products with streetwear used to be ahead of the curve but now it is par for the course. Perhaps no other shop saw the wave forming as much as Colette, the seminal Parisian boutique that is also the subject of our forthcoming documentary Colette Mon Amour.

Colette’s 2017 closure marked the end of an era . . . and the start of another. Retail remade itself to mirror changing consumer relationships. Concept stores were not just places to buy things, they were platforms for discovery and enrichment.

A shop such as Dover Street Market feels more like a museum than a retailer and, in the age of social media, shop windows are no longer enough — which is why you see artists and brands creating whole installations inside storied department stores. Examples include Bergdorf Goodman’s partnership with Kith, Galeries Lafayette’s collaborations with upstart New York menswear label Noah and streetwear consignment shop Round Two, and even media brands, like my own Highsnobiety, which has teamed up with Selfridges on the Co.Lab. We will host product drops and collaborations every week for five weeks, as well as events such as a documentary screening, all starting this weekend to coincide with London Fashion Week Men’s. To be relevant to a new consumer, stores need to sell something beyond the product.

Combining the sense of community with merchandising tells a story behind a product’s raison d’être, and the relationships between stores and consumers becomes more like a curator and eager patrons of the arts. The boundaries between fashion, art, luxury and street feel like they are no longer there. To me, that is what streetwear was always fighting for.

David Fischer is founder and chief executive of Highsnobiety

>>> What to look at today - 3rd of January 2020

The risk-on sentiment that ushered in the new year took a hit on Friday as tensions flared in the Middle East, buoying the yen and sending U.S. equity futures lower. Oil surged.
Stocks in Asia reversed gains and Treasury futures advanced as news broke that a U.S. airstrike in Baghdad killed a top Iranian commander. The risk-off move was given extra momentum when Iran’s Ayatollah Khamenei said “severe retaliation” awaits the commander’s killers. The developments ended the bullish mood that had pushed the S&P 500 to a record high Thursday.
US After Hours INCY falls -9.6% on clinical data; ILMN/PACB merger terminated; LNDC falls 14% on earnings

Nikkei Closed Hang Seng -0.21% CSI -0.22% Shanghai -0.07% Shenzen +0.22%

Eur$ 1.1170 CNH 6.9705 CNY 6.9729 JPY 108.15 GBP 1.3119 CHF 0.9706 RUB 61.8288 TRY 5.9641 WTI$ 62.90 +2.81%

S&P -0.76% EuroStoxx -0.55% FTSE -0.44% Dax -0.55% SMI -0.99%

Macro :
- S&P Takes Most Bearish Stance on U.S. Corporate Debt Since 2009
- Cash and Bonds the Big Fund Flow Winners in 2019, Jefferies Says
- Equities To Rally on Fear of Missing Out, UBS Private Bank Says

Keep an eye on :
- ADEN SW : Adecco Sees Gain in 4Q, FY Results on Soliant Health Divestment
- AGS NA : Ageas Sees RPN(i) Effect Reducing 4Q Earnings by EU106 Million
- AIR FP : FT Lex Artcile : End of 737 will be -ve for both Boeing & Airbus : https://on.ft.com/2QiVEW1
- AIR FP : Airbus May Hire 2,000 in Toulouse in 2020: France Bleu (Earlier)
- ATC NA : Cellnex to Buy EU800 Million of Portugal Phone, Internet Masts
- CLNX SM : Cellnex Starts 2020 With Deal to Buy Towers From Morgan Stanley
- DBV FP : DBV Technologies Names Ramzi Benamar as CFO
- DTE GY : Analyst Sees Judge Likely to Block T-Mobile’s Sprint Merger
- EQNR NO : Equinor’s Undervalued Wind Assets Could Drive Re-Rating: RBC
- FIN LN : Finablr Says Other Brands Operating Normal after Travelex Notice
- FNG BB : *FNG SUSPENDED IN BRUSSELS PENDING STATEMENT: FSMA
- GLJ GY : Grenke Full Year New Business Volume EU3.57 Bln, +20% Y/y
- MC FP : Louis Vuitton to Close Store in Protest-Hit H.K. District: SCMP
- MBT LN : Mobile Tornado Sees Earnings Below Market Expectations
- ONTEX BB : ENA Investment Capital Cuts Ontex Shareholding to 2.13% Dec. 27
- PRS NO : Keppel: Prosafe Filed Norway Appeal on Proposed Floatel Merger
- RYA ID : Ryanair’s O’Leary Cuts 737 Max Delivery Expectations to Five
- SRCG SW : Sunrise Says Swantee Resigns as CEO; Krause Becomes New Head
- SWMA SS : Swedish Match ADRs Gain on New FDA Language on Flavored Cigars
- TSLA US : Tesla Cuts Prices on China-Built Model 3 (1)

>>> Europe : Brokers Upgrades & Downgrades - 3rd of January 2019

>>> Up
* DSM Raised to Hold at SocGen; PT 119 euros
* K+S Raised to Buy at Citi

>>> Down
* Know IT Cut to Sell at ABG; PT 175 kronor

>>> Initiation
* Siltronic Rated New Hold at Nord/LB; PT 82 euros

>>> Call
* Equinor’s Undervalued Wind Assets Could Drive Re-Rating: RBC
* K+S Raised to Buy at Citi as Play on Rising Potash Prices
* Homeserve Raised; Peel Hunt Sees Defensive Growth

>>> US After Hours Summary: INCY falls -9.6% on clinical data; ILM

After Hours Summary: INCY falls -9.6% on clinical data; ILMN/PACB merger terminated; LNDC falls 14% on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: RECN +3.5%

Companies trading higher in after hours in reaction to news: ACOR +20.4% (Point72 increases passive stake to 9.8%), DBVT +4.4% (names Ramzi Benamar as CFO), BNTX +4.2% (announces publication of preclinical data for CAR-T cell therapy approach targeting solid tumors), PACB +2.7% (mutually terminates merger agreement with ILMN)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: LNDC -14.1%

Companies trading lower in after hours in reaction to news: INCY -9.6% (disappointing GRAVITAS-301 results), AA -1.8% (to sell waste treatment facility), ANET -1.8% (Chief Customer Officer resigns, reaffirms Q4 revs guidance)