- Thales (CSF TH) +1.4%
- Air France-KLM (AFR TH) +1.1%
- Air France-KLM Reinstated at BofAML With Buy; PT 12 Euros
- Kion (KGX TH) +0.9%
- Mowi (PND TH) +0.8%
- Novo Nordisk (NOVC TH) +0.7%
- Novo Nordisk walks tightrope on moral mission
- BAT (BMT TH) +0.7%
- Wirecard (WDI TH) +0.7%
- Wirecard AG: Wirecard launches first fully digital multi-merchant loyalty solution
- Airbus (AIR TH) +0.6%
- Not Time to Take Profits in Airbus or Boeing Yet, Berenberg Says
- Anglo American (NGLB TH) -0.6%
- Anglo American RBC’s Top Pick on Platinum, Palladium Exposure
- Fuchs Petrolub (FPE3 TH) -0.6%
- Ubisoft (UEN TH) -0.9%
- Osram (OSR TH) -1%
- Deutsche Post (DPW TH) -1.2%
- Deutsche Post Confirms 2020 View; Sees ‘22 Ebit At Least EU5.3b
- Lufthansa (LHA TH) -1.2%
- Lufthansa Reinstated at BofAML With Underperform; PT 12.20 Euros
DAX:
- Deutsche Bank (DBK TH) +0.7%
- Daimler (DAI TH) +0.6%
- Wirecard (WDI TH) +0.6%
- Infineon (IFX TH) +0.5%
- BASF (BAS TH) +0.5%
- Deutsche Post (DPW TH) -0.8%
- Deutsche Post Confirms 2020 View; Sees ’22 Ebit At Least EU5.3b
- Lufthansa (LHA TH) -1.2%
- Lufthansa Reinstated at BofAML With Underperform; PT 12.20 Euros
MDAX:
- Telefonica Deutschland (O2D TH) +1.5%
- Airbus (AIR TH) +0.7%
- Osram (OSR TH) -1.1%
SDAX:
- Deutz (DEZ TH) +1%
- Leoni (LEO TH) +0.6%
- Nordex (NDX1 TH) +0.5%
- Encavis (CAP TH) +0.5%
Asian stocks rose after gains in the U.S. overnight, and futures on the S&P 500 Index pushed higher. Japanese bond futures and U.S. Treasuries fell after a weak auction in Tokyo.
The month kicked off in the black for a Japanese equity market that has lately lured interest for its relatively cheap valuations. Korean stocks also gained though trading was subdued with China and Hong Kong shut for holidays. The dollar added to Monday gains, and European futures ticked higher. Investors remain focused on U.S.-China trade talks scheduled for next week, with little impact seen as yet from President Donald Trump’s impeachment troubles.
US After hours GERN +16.5% on imetelstat Fast Track designation, FPRX / SLG lower following analyst downgrades
Nikkei +0.69% Hang Seng +0.53% CSI -0.99% Shanghai -0.92% Shenzen -1.06%
Eur$ 1.0890 CNH 7.1406 CNY 7.1483 JPY 108.24 GBP 1.2291 RUB 64.7751 CHF 0.9991 TRY 5.6579 WTI$ 54.56 +0.91%
S&P +0.37% EuroStoxx +0.34% Dax +0.37% SMI +0.39%
Macro :
- Brexit-Backing Hedge Fund Boss Odey Rejects Conflict Claims (1)
- Gold Beats Equities in Third Quarter, Spurring Inflows in ETFs
- U.K. Is Ready to Show EU Its Draft Divorce Deal: Brexit Update
- Japan’s Curve Steepens Aggressively on BOJ Action: Macro Squawk
Keep an eye on :
- ABBN SW : ABB Culture Change Will Take 2-3 Years, Chairman Tells DI
- ADP FP : Groupe ADP Signs Agreement to Built Paris Airport Hotel Complex
- ATMA LN : Atlas Mara 1H Net Loss $126.4m vs $28.6m Profit Year Ago
- BBVS AM : Generali Drops Pursuit of Bancassurance Partnership With BBVA
- BEFB BB : Befimmo: Bought 2.66m Shares Held by Fedimmo at EU56/Share
- BONAVA SS : Bonava to Acquire Urbanium for NOK 608M
- CLN SW : Clariant Sees FY 2019 Capex at CHF260m
- DPW GY : Deutsche Post Confirms 2020 View; Sees ’22 Ebit At Least EU5.3b
- EDP PL : EDP Gets Equity Financing for Onshore Wind Projects in U.S.
- ELG GY : Elmos Semi Cuts Full Year Sales Forecast
- ELUXB SS : Electrolux Names Kai Wärn to Chairman of Electrolux Professional
- ELE SM : *ENDESA, 6 FUNDS INTERESTED IN ACS RENEWABLE UNIT: CONFIDENCIAL
- ENEL IM : PLC, Enel Green Extend Approval Time for Wind Projects Sale
- EXM BB : Exmar: Talks With Sinosure on DSRA Ongoing, So Far No Agreement
- GNFT FP : Genfit Cash Position EU282M End June Vs EU207M End December
- HUBN SW : Huber + Suhner Buys BKtel Group for About CHF50m
- ICAD FP : Icade Sells 49% of Paris La Defense Eqho Tower for EU365M
- ISS DC : ISS Free Cash Flow Seen Missing Guidance; Jefferies Downgrades
- LO24 GY : Lotto24 AG CEO Petra Von Strombeck to Leave Company
- MT IM : Maire Tecnimont Signs Pact With EuroChem for Russian Plant Works
- MAS SM : Masmovil Increases 2020 Adj. Ebitda Guidance to EU570M-EU600M
- MS IM : Mediaset Confirms Forecast for Improvement in Ebit, Net Income
- MDW FP : Mediawan 1H Revenue Up 29% To EU189M; Sees Favorable 2H
- MTRO LN : Metro Bank Says It’s Confident of Meeting 2020 MREL Requirements
- NWO GY : New Work Names Petra Von Strombeck as New CEO
- NEX FP : Nexans Sees Winning U.S. Offshore Wind Contracts By End of Year
- ORGC SS : Organoclick to Raise About SK65M in Directed Share Issue
- PNL NA : PostNL to Start Integrating Own, Sandd Networks After Govt Nod
- PNE3 GY : German Wind Power Firm Sees Investor Ire Over Morgan Stanley Bid
- SGO FP : Saint-Gobain Completes Sale of Distribution Activity in Germany
- SRAIL SW : Stadler Rail Wins German Tender with EU57m Order Volume
- SWEDA SS : Swedbank Estonia Says Three Executives to Leave Following Probe
- TEF SM : *TELEFONICA MULLS JOINING ORANGE,VODAFONE NETWORK PACT:EXPANSION
- TKA AV : Telekom Austria Has Scope to Double Its Dividend, Jefferies Says
- DG FP : Vinci Signs Share Purchase Pact to Buy Back up to EU200m of Shrs
- WTB LN : Barclays sees Whitbread as potential target following CKA’s offer for Greene King
>>> Up
* NOS Upgraded to Buy at Grupo Santander; Price Target 6 Euros
* PATRIZIA AG Upgraded to Buy at Bankhaus Lampe
* Telekom Austria Upgraded to Buy at Jefferies; PT 8 Euros
>>> Down
* Hapag-Lloyd Downgraded to Reduce at Commerzbank; PT 53 Euros
* ISS Downgraded to Hold at Jefferies; PT 180 Kroner
* RBS Downgraded to Equal-weight at Barclays; PT 2.25 Pounds
* Shurgard Self Storage Downgraded to Hold at HSBC; PT 31 Euros
>>> Initiation
* Air France-KLM Reinstated at BofAML With Buy; PT 12 Euros
* Banco Santander Resumed at Citi With Neutral; PT 3.80 Euros
* EasyJet Reinstated at BofAML With Neutral; PT 12 Pounds
* Geberit Rated New Underweight at Barclays; PT 410 Francs
* IAG Reinstated at BofAML With Buy; PT 6.60 Pounds
* J. Martins Reinstated Equal-weight at Morgan Stanley
* Lufthansa Reinstated at BofAML With Underperform; PT 12.20 Euros
* Norwegian Air Reinstated Underperform at BofAML; PT 27 Kroner
* Ryanair Reinstated at BofAML With Buy; PT 13.50 Euros
* Vivo Energy Rated New Buy at Berenberg; PT 1.68 Pounds
* Wizz Air Rated New Buy at BofAML; PT 41 Pounds
>>> Call
* Commerzbank’s New Strategy Has ‘Few Positives,’ Citi Says
* Vivo Energy Shares Yet to Reflect Profitable Outlook: Berenberg
Sent from Bloomberg Professional for Android
After Hours Summary: GERN +16.5% on imetelstat Fast Track designation, FPRX / SLG lower following analyst downgradesAfter Hours Gainers:
Companies trading higher in after hours in reaction to news: GERN +16.5% (announces Fast Track designation granted to imetelstat for relapsed/refractory myelofibrosis), IOVA +0.9% (initiated with a Buy at Stifel)
After Hours Losers:
Companies trading lower in after hours in reaction to news: ANAB -13.5% (reports topline data from interim analysis of GALLOP Phase 2 clinical trial of ANB019 monotherapy in moderate-to-severe generalized pustular psoriasis), FPRX -1.2% (downgraded to Neutral from Buy at Guggenheim), SLG -0.6% (downgraded to Hold from Buy at Stifel)
Ferretti: La Dolce Vita
With recession signs on the horizon, ambitions for the IPO might have to be lowered
Compelling images are needed to get investors aboard an initial public offering. The products of Italian luxury motor yacht maker Ferretti could feature in the glitziest Hollywood movie. Fans reportedly include George Clooney.
Piero Ferrari, son of carmaker Enzo Ferrari, holds a 13 per cent stake. A price range for the shares revealed on Monday could value it at up to €1bn. Ferretti’s boats may be priced for those with A-list budgets. The shares could have potential for ordinary investors too.
Ferretti’s beautifully crafted, wooden-hulled Riva Aquarama vessels are known as the Ferrari of boats. Thankfully, the mooted valuation multiple is not as high as that of the car company. At the middle of the price range, Ferretti would be worth about 13 times this year’s ebitda earnings, a third below where Ferrari shares trade. But a Ferrari-like business is the final objective. Fresh capital from the IPO will be used to expand the group’s model range. Harder to achieve will be building a Ferrari-esque brand to sell high margin items. Swanky sailor’s sunglasses, perhaps?
Ferretti’s main shareholder is China’s state owned industrial group Weichai. It wants to reduce its 86 per cent shareholding but keep a controlling stake. Ferretti will come to market with a debt-free balance sheet.
While sales rose a tenth to €609m last year, ebitda rose only 2 per cent, which pushed the relevant margin down to 8.6 per cent — a far cry from Ferrari’s near 30 per cent margin. That suggests some work is needed in Ferretti’s engine room. But it still outclasses UK yacht builders Sunseeker and Princess, with ebitda margins of 4.5 per cent and 5.8 per cent.
Ferretti promises growth from countercyclical sectors, such as maintenance. The bulk of sales still come from rich countries. With recession signs on the horizon, ambitions for the IPO might have to be lowered. If so, a new chapter in Ferretti’s story would offer investors a chance to sail away into the sunset too.
Closing Stock Market SummaryWall Street finished higher on Monday to wrap up the third quarter. The S&P 500 (+0.5%), Dow Jones Industrial Average (+0.4%), and Nasdaq Composite (+0.8%) posted respectable gains, lifted by shares of Apple (AAPL 223.97, +5.15, +2.4%) after JP Morgan raised its price target to $265 from $243. The Russell 2000 increased 0.2%.
Investor sentiment lightened up from Friday after a Treasury spokeswoman tweeted on Saturday that the administration was not planning to block Chinese companies from U.S. stock exchanges "at this time." For good measure, White House trade advisor Peter Navarro dismissed the report that first suggested this possibility as mostly false.
Today, in turn, was a relatively calm session in which the broader market drifted higher throughout the day amid strength in the S&P 500 information technology (+1.0%) and health care (+0.9%) sectors. The trade-sensitive Philadelphia Semiconductor Index (+1.0%) also outperformed, with Taiwan Semi (TSM 46.48, +0.97, +2.1%) setting a 52-week high after Goldman Sachs added the stock to its Conviction Buy List.
The S&P 500 utilities sector (+0.1%) struggled to match the benchmark index, while the financials (-0.1%) and energy (-0.8%) sectors finished in negative territory. Another decline in oil prices ($54.12/bbl, -1.78, -3.2%) weighed on the oil-sensitive energy stocks, as Saudi Arabia reportedly returned to normal oil output and Chinese data continued to show weakness in the country's manufacturing sector.
Specifically, China's official Manufacturing PMI did improve to 49.8 in September from 49.5 August, but the reading below 50.0 indicated the sector remained in contraction territory. The Chicago PMI for September, meanwhile, fell back into contraction territory with a reading of 47.1 (Briefing.com consensus 50.8).
Growth concerns weren't evident in the stock market, though, as it pushed higher following the release of the Chicago PMI. U.S. Treasuries did see some slight buying interest after the report, which helped bring yields down to their unchanged marks in a relatively tight-ranged session.
The 2-yr yield and the 10-yr yield finished unchanged at 1.62% and 1.68%, respectively. The U.S. Dollar Index increased 0.3% to 99.40. Gold futures, which had rallied alongside a stronger dollar this quarter, declined 2.2% (-$33.10) to $1473.30/ozt from Friday's settlement price.
Monday's economic data was limited to the Chicago PMI for September, which declined to 47.1 (Briefing.com consensus 50.8) from 50.4 in August. 50.0 is the dividing line between an expansion and contraction.
On Tuesday, investors will receive the ISM Manufacturing Index for September, Construction Spending for August, and auto and truck sales for September.
- Nasdaq Composite +20.6% YTD
- S&P 500 +18.7% YTD
- Dow Jones Industrial Average +15.4% YTD
- Russell 2000 +13.0% YTD