>>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • FSLY +21%, STMP +18.8%, SIEN +17.9%, CFMS +16.2%, AAXN +15%, PAR +14.3%, ZG +12%, EB +11.9%, QNST +11.9%, SWCH +10.8%, AMPH +9.2%, CORT +8.7%, PLNT +8.4%, MTW +8.3%, YELP +7.9%, FARM +7.7%, VSAT +7.7%, GH +7.5%, PRTY +6.5%, NK +6.4%, LGF.A +6.4%, GPRO +6%, WKHS +5.8%, MIME +5.8%, BKNG +5.2%, UEPS +5.2%, SGMS +5.2%, DIS +5%, BE +4.7%, MNST +4.5%, NCR +4.1%, CUTR +4.1%, MSG +3.7%, RVLV +3.5%, SWAV +3.4%, AIRG +2.9%, NET +2.6%, AMH +2.5%, CDAY +1.9%, DD +1.4%, NLOK +1.4%, AMCR +1.3%, AL +1.2%, AMBC +1.2%, TROX +1.1%, ZIXI +1%, WPRT +1%
  • Gapping down:
    • MED -29.4%, TDC -23.8%, GDOT -23.2%, NVEE -22.1%, MOD -19.8%, RGR -15.1%, ALTR -11.9%, AFMD -11.4%, HEAR -11%, ADMS -10.6%, TUSK -9.1%, GPS -8.4%, PEN -6.6%, CWH -5.9%, LXRX -5.7%, ENLC -5%, UPLD -4.9%, ARLO -4.6%, SVMK -4.3%, NGL -3.6%, LPSN -3.5%, WORK -3.4%, MTD -2.9%, ZIOP -2.9%, TTD -2.7%, MITK -2.6%, GSBD -2.4%, PEGA -2.4%, EQH -2.2%, KRO -2.1%, TIVO -2.1%, TRHC -1.9%, ATVI -1.7%, CTRE -1.4%, COLD -1.2%, NWSA -1.2%, DB -1%, PETQ -1%


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Portfolio Ticker Matches:  SCANX



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Reuters - Honda cuts profit, sales outlook to four-year low; unveils $915 millio

Honda cuts profit, sales outlook to four-year low; unveils $915 million buyback

TOKYO (Reuters) - Honda Motor Co (7267.T) slashed its annual profit and global sales outlook to a four-year low, citing a firmer yen and bleak business in both India and its main market of North America, even as it unveiled plans to buy back $915 million shares.

The dour outlook comes at a time when Honda is struggling to shore up its automobile operations, with its profitability down more than half in the past two years due to a series of quality-related issues constraining its financial firepower to invest in new vehicle technologies.

Japan’s third-largest automaker now expects an operating income of 690 billion yen for the year to March, lowest since the year-ended March 2016, from 770 billion yen previously.

It sees the yen averaging 107 versus the dollar over the period, from a previous assumption of 110 yen. A stronger currency eats into profits because exports become more expensive and the value of overseas earnings decreases.

Honda said it had also been hit by an almost 20% slide in motorcycle sales over the six months to September in India. The world’s No.4 auto market has gone into a tailspin this year amid tight liquidity, high taxes and a weak rural economy.

“The Indian market is contracting at a very rapid rate,” said Honda Executive Vice President Seiji Kuraishi.

“I must say, we are struggling there.”

While Honda’s vehicle sales were overall flat in its main market of North America in the first half, it expects a “moderate” decline over the course of the fiscal year.

The company cut its outlook for global group auto sales to 4,975,000 vehicles, versus a previous forecast of 5,110,000, for the current financial year.

For a graphic on Honda's operating profit, vehicle sales, please see : tmsnrt.rs/2p2j3Ao

Honda joins compatriots Suzuki Motor Corp (7269.T), Subaru Corp (7270.T), Mazda Motor Corp (7261.T) and Mitsubishi Motors Corp (7211.T) in slashing profit projections in recent days.

Toyota bucked the trend and retained its forecast on Thursday. Flush with cash after a stellar second quarter, it also announced a $1.8 billion share buyback.

Honda has said it will buy back up to 33 million shares worth up to 100 billion yen over the rest of the fiscal year.

Nissan Motor (7201.T) is due to report results on Tuesday.

Honda shares closed 1.9% higher ahead of the results announcement. They plumbed a near 7-year low in August and are up 6.3% so far this year.

FT : Japan to launch first economic stimulus since 2016

Japan to launch first economic stimulus since 2016
Shinzo Abe orders intervention over worries about global slowdown and sales tax impact

Prime minister Shinzo Abe has given orders for Japan’s first economic stimulus package since 2016 as his government frets about a global slowdown, the impact of higher consumption tax and the risk of a hangover from next year’s Tokyo Olympics.

Government officials vowed to produce an “agile” and “comprehensive” stimulus that will take advantage of ultra-low interest rates and borrow in order to finance public investment.

The planned stimulus highlights concerns about the health of the world economy as well as a global move towards looser fiscal policy, given sluggish private demand and the ability for governments to borrow at negative interest rates.

“To speed up our recovery [from natural disasters], deal with risks from abroad and accelerate productivity growth, we are formulating an economic plan along the lines of a 15-month budget,” said Yoshihide Suga, Japan’s chief cabinet secretary.

The plan would combine a supplementary budget for the remainder of the 2019 fiscal year, which runs to March 2020, with spending plans that would boost the economy all the way into 2021. The scale of the stimulus has not yet been decided.

The plan will include spending for reconstruction after typhoon Hagibis, which caused extensive destruction in eastern Japan last month, as well as investment to repair and expand flood defences, after the water breached dykes in several areas.

Mr Suga said there would also be spending to raise productivity in small businesses, agriculture and regional Japan, as well as investment to improve economic competitiveness beyond the Olympics. There are widespread fears of a slump late next year, once real estate investment timed for the games is complete.

“Putting the current low interest rates to good use, we want to deploy fiscal borrowing and investment proactively to invigorate investment for future growth,” Mr Suga said.

Similar programmes in the past have included funding to build a new magnetic levitation railway line from Tokyo to Osaka, due for completion by 2037.

Speaking after a cabinet meeting, finance minister Taro Aso said 50-year government bonds are now “a topic for consideration”. The finance ministry had previously rejected any possibility of taking advantage of low interest rates to borrow for longer than the current maximum of 40 years.

Mr Aso’s comments come days after Haruhiko Kuroda, governor of the Bank of Japan, said such bonds could be useful in preventing excessive downward pressure on long-term interest rates.

The BoJ has cut overnight interest rates to minus 0.1 per cent and purchased trillions of yen worth of government bonds but the flat yield curve now makes it hard for banks and insurers to turn a profit. The BoJ has also increasingly sought to maintain higher yields on the longest duration bonds.

>>> TradeGate Pre-Market Indications

DAX:
  • Lufthansa (LHA TH) +0.7%
    • Lufthansa Switches Boeing 777 Orders to Options in Fleet Rethink
  • Allianz (ALV TH) -0.7%
    • Allianz Lifts Outlook as Pimco Flows Boost Third-Quarter Profit
  • Wirecard (WDI TH) -0.7%
  • Merck KGaA (MRK TH) -0.8%
MDAX:
  • Deutsche PBB (PBB TH) +1.5%
    • Deutsche Pfandbriefbank Sees FY Pretax Profit EU205M to EU215M
  • Hugo Boss (BOSS TH) +0.8%
  • 1&1 Drillisch (DRI TH) +0.6%
  • ProSieben (PSM TH) -0.6%
  • ThyssenKrupp (TKA TH) -0.7%
  • Commerzbank (CBK TH) -1%
  • Duerr (DUE TH) -1%
  • Siemens Healthineers (SHL TH) -1.2%
SDAX:
  • SMA Solar (S92 TH) +1.6%
  • Stabilus (STM TH) +1.4%
  • Rhoen Klinikum (RHK TH) +1%
    • Rhoen Klinikum 9-Month Ebitda Down; Sees Operative Challenges
  • Borussia Dortmund (BVB TH) +0.9%
  • Schaeffler (SHA TH) -0.8%
  • Aixtron (AIXA TH) -1%
  • Jost Werke (JST TH) -5.7%
    • Jost Werke Prelim 9M Sales EU579.1M, Cuts FY Sales Growth View

>>> Stoxx 600 Pre-Market Indications

  • STMicroelectronics (SGM TH) +0.7%
  • Enel (ENL TH) +0.6%
  • BMW (BMW TH) -0.7%
    • Watch Autos After Juncker Says Trump Won’t Impose Car Tariffs
  • Allianz (ALV TH) -0.8%
    • Allianz Lifts Outlook as Pimco Flows Boost Third-Quarter Profit
  • Scout24 (G24 TH) -0.8%
    • Scout24 Cut to Neutral at JPMorgan; PT 56 euros
  • ProSieben (PSM TH) -0.9%
  • Brenntag (BNR TH) -1%
  • Commerzbank (CBK TH) -1%
  • TUI (TUI1 TH) -1%
  • Siemens Healthineers (SHL TH) -1.2%
  • Orsted (D2G TH) -1.5%
    • Orsted Offering by Holder Prices 9.53m Shares at DKK560/Share
  • Immofinanz (IMO1 TH) -4.5%
    • CA Immobilien Disposes ~4% of Immofinanz Issued Share Capital

>>> CFR SW - Post Earnings comments

CFR SW : CFO: Wants to focus on developing its own jewelry brands Van Cleef, Cartier, now Buccellati - post earnings comments
- In talks to negotiate lower rents in Hong Kong
- Not actively defining acquisition targets, but we have rarely built business from scratch
- Always been open to acquisition activity, will spend money when see an opportunity
- Never sold stock to finance an acquisition, doesn't want to speculate about the future
- No plans to abandon Hong Kong market that is also important for local clientele
- Still monitoring watch inventory levels at third party retailers very closely