>>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • YUMA +10.6%, EROS +7%, MDR +5.5%, DRD +4.7%, ANF +3.1%, PERI +2.4%, AUDC +2.4%, EXAS +2.4%, SAND +2.4%, PAAS +2.2%, AG +2.1%, YNDX +1.6%, HL +1.5%, GT +1.4%, CDE +1.3%, OSTK +1.2%, NVO +1%

Gapping down:

  • NE -8.6%, AKS -4.9%, GME -4.9%, MT -4.9%, SCHN -4%, BBVA -3.6%, RBS -3.2%, DB -3%, CLF -3%, SAVE -2.8%, ING -2.6%, X -2.2%, LYG -2.2%, AA -2.2%, MOMO -2.1%, ITW -2%, BCS -2%, NOK -1.9%, BHP -1.7%, BBL -1.7%, TEVA -1.6%, GFI -1.5%, CS -1.5%, BZUN -1.2%, CRH -1.2%, HSBC -1.2%, BP -0.8%, GE -0.6%

>>> What to look at today 23rd of September 2019

Stocks in Asia slipped as investors monitored the latest developments in trade talks between America and China. U.S. equity futures advanced and the yen edged lower.
Hong Kong and China had the biggest declines, while Sydney rose. Japan is closed for a holiday. The onshore yuan fell amid caution in the run-up to next week’s national holidays. The Korean won sank as exports continued to deteriorate. China’s withdrawal from a planned visit to U.S. farm states had nothing to do with trade talks, according to a report.

Nikkei +0.16% Hang Seng -0.73% CSI -1.56% Shanghai -1.38% Shenzen -1.46%

Eur$ 1.1025 CNH 7.1104 CNY 7.1116 JPY 107.74 GBP 1.2476 RUB 63.89 CHF 0.9912 TRY 5.72 WTI 58.75 +1.14%

S&P +0.39% EuroStoxx -0.28% FTSE +0.14% Dax +0.15% SMI -0.44%

Macro :
- Goldman Says Buy Stock Options Ahead of October Volatility Surge
- Iran Envoy Won’t Rule Out War After U.S. Sends Aid to Saudis
- Goldman Sachs Is Taking Another Stab at Serving Europe’s Rich

Keep an eye on :
- AIR FP : Airbus CEO Says Company Ready for No-Deal Brexit: Expansion
- ARAMCO IPO : Aramco Said to Add Barclays, BNP, Deutsche, UBS as Bookrunners
- ATL IM : Atlantia Downgraded to BBB- by S&P Over Regulatory Risks (1)
- BATS LN : BAT Says No Company Vapor Products Involved in Recent Incidents
- BBVA SM : BBVA Sees Buying Banks as An Option Amid Low Rates: Expansion
- BNP FP : Deutsche Bank Completes Deal to Transfer Prime Assets to BNP
- DEZ GY : Deutz Sees Missing Adj EBIT Margin Target on Supplier Insolvency
- EDF FP : EDF Issues French Strike Notice for 24 Hours From 9pm Monday
- SIGHT FP : GenSight Study Shows GS010 Injection Works on LHON Patients
- HEMB SS : Vonovia to Buy 61.2% Stake in Hembla for SEK215/Share (1)
- IPH FP : *INNATE PHARMA FILES FOR PROPOSED IPO IN UNITED STATES
- IPN FP : Ipsen Announces Positive Results for Limb Spasticity Treatment
- LLOY LN : Lloyds-Schroders Wealth Business to Charge New Clients Less: FT
- LWB LN : Low & Bonar Says Performance is Below Expectations
- MBTN SW : Meyer Burger Board Opposes Election of Activist Holder to Board
- MTX GY : Jet Demand Will Ride Out Any Slump, Engine High Flyer MTU Says
- OCDO LN : Ocado Embroiled in Legal Fight With Co-Founder’s Rival Firm
- OIBR4Z BZ : Huawei, China Mobile Said to Mull OI SA Bid, Reuters Says
- PRS SM : Prisa Agrees to Sell Media Capital Stake to Cofina for EU170.6m
- PRS SM : Prisa Agrees to Sell Media Capital Stake to Cofina for EU170.6m
- PURE LN : PureCircle Postpones Results as PwC Finds ‘Potential Issue’
- RYA ID : Ryanair Issues Warnings to Pilots on Taking More Sick Leave: FT
- SBRY LN : Sainsbury Set to Exit Mortgage Lending: FT
- SRG IM : Snam to Buy 49% of OLT, Take Joint Control of Terminal
- TCG LN : U.K.’s Raab Hints Government Won’t Rescue Thomas Cook
- TCG LN : Civil Aviation Authority Has Passenger Rescue Plan: Telegraph
- UCG IM : UniCredit Says Bisoni Named Chairman
- VIV FP : Vivendi Didn’t Exercise Withdrawal Rights for Its Mediaset Stake
- VNA GY : Vonovia to Buy 61.2% Stake in Hembla for SEK215/Share
- ZuRN SW : Zurich Insurance Names Peter Giger Chief Risk Officer

>>> Europe : Brokers Upgrades & Downgrades - 23rd of September 2019

>>> Up
* Bonava Upgraded to Buy at Handelsbanken; PT 122 Kronor
* EssilorLuxottica Upgraded to Overweight at Morgan Stanley
* Morrison Upgraded to Buy at Deutsche Bank
* Petra Diamonds Upgraded to Hold at Berenberg
* Sainsbury Upgraded to Buy at Deutsche Bank
* Sanofi Upgraded to Overweight at Morgan Stanley; PT 90 Euros
* Scandic Upgraded to Buy at SEB Equities; Price Target 90 Kronor
* Swedbank Upgraded to Overweight at Morgan Stanley

>>> Down
* Aena Downgraded to Equal-weight at Barclays; PT 167 Euros
* Elisa Oyj Downgraded to Sell at Citi
* Investec Cut to Hold at Renaissance Capital; PT 5.30 Pounds
* Metro AG Downgraded to Sell at Deutsche Bank
* SEB Downgraded to Underweight at Morgan Stanley
* Telenor Downgraded to Equal-weight at Barclays; PT 185 Kroner

>>> Initiation
* Prosus Rated New Overweight at Morgan Stanley; PT 92 Euros

>>> Call
* Cineworld’s Valuation Far Too Low Amid U.S. Improvement: Citi
* EssilorLuxottica Synergy Scope Sees Upgrade at Morgan Stanley
* Petra Diamonds Up to Hold But Market Remains Tough: Berenberg
* Swedbank New Top Pick Among Nordic Banks at Morgan Stanley

>>> Weekend Papers Summary

Weekend Papers Summary

NY TIMES (Saturday): During a call in July, Donald Trump called on Ukrainian president Volodymyr Zelensky to investigate former vice president Joseph Biden’s son, according to a person familiar with the conversation, an apparently blatant mixture of foreign policy with his 2020 re-election campaign; +/- FB: Social site’s suspension of tens of thousands of apps for improperly accessing personal information was a tacit admission that the scale of its data privacy issues was far larger than it had previously acknowledged; The F.B.I. has used secret subpoenas to obtain personal data from far more companies than previously disclosed, newly released documents show, including usernames, locations, IP addresses and records of purchases; Kim Myong-gil, North Korea’s new envoy to nuclear talks with the U.S., welcomed the ouster of National Security Adviser, John Bolton, and Trump’s suggestion he would use a “new method” in negotiating with the Pyongyang; German chancellor Angela Merkel’s government agreed to support a $60B package of climate policies aimed at helping Germany meet its goal of reducing greenhouse gas emissions by 2030; California, joined by 22 other states and the District of Columbia, filed suit against the Trump administration for its unprecedented legal reversal of states’ authority to establish their own rules on climate-warming tailpipe emissions; India once had the world’s fastest-growing economy—manufacturing everything from underwear to cars—but it has been battered by global and domestic forces, and its troubles are a warning sign for other developing countries; +/- Airbnb: Interviews with current and former employees and investors reveal the company’s 6,000-person work force has become increasingly frustrated by not being able to cash in stock that was received in compensation packages, and waiting for the IPO has become a growing source of stress; +/- AMZN, AAPL, FB, GOOGL: The House Judiciary Committee asked more than 80 companies for information about how their businesses may have been harmed by the tech giants, according to sources, a sign Congress is increasing the scope of its investigation into Silicon Valley’s power; Trump said China was a “threat to the world” and suggested Beijing was eager to make a trade deal because his tariffs were hurting the Chinese economy, comments that come as the two countries prepare to resume negotiations; (Sunday): Allegations that Trump courted foreign interference from Ukraine to damage Democratic presidential candidate Joe Biden prompted Biden to demand a House investigation of Trump’s phone call with Ukraine’s leader and Trump to call the whole thing a “witch hunt”; As China presented itself as a partner for El Salvador’s future, Trump may have played into Beijing’s hands by offering little beyond threats to the Central American nation and its neighbors for not doing enough to curb migration, though it has shifted to criticizing China’s legacy in the developing world; Democratic presidential contender Elizabeth Warren is the new Iowa polling leader, narrowly in first place ahead of former vice president Joe Biden, according to a new poll of the state from The Des Moines Register and CNN; Sunday Business: Lead story says that Silicon Valley tech companies, which long gave workers purpose, optimism, and self-confidence now find that staff are anxious about a number of things, prompting the launch of therapy start-ups that offer familiar care along with streamlined paperwork, data-driven approaches, and “happiness analysis”; Magazine: In an opinion piece, former vice president Al Gore, says the climate crisis is the battle of our time, and that the tools and political power necessary to create change are in place to win the battle.

WSJ (Weekend): The U.S. said it would send military forces and hardware to Gulf allies and moved to sever some of Iran’s last ties to world markets on Friday by sanctioning its central bank, while preparing to outline a case for international action when world leaders gather at the United Nations; Donald Trump dismissed the trade war with China as “a little spat” and rejected the notion of accepting a partial trade agreement, saying Beijing’s plan to boost purchases of U.S. agriculture exports alone isn’t enough; +/- AMZN, FB: As concerns about the health hazards of vaping mount, a market for cannabis-vaping products and the tools to create counterfeits is thriving online on big tech platforms, where they are legal under certain circumstances; Federal Reserve officials are studying whether infrastructure issues contributed to a spike in short-term lending rates this week, after the central bank said it would extend recent operations to inject cash into money markets; The Trump administration reached a deal with El Salvador to send some asylum seekers from third countries back there, part of a larger effort to dissuade migrants from entering the U.S. illegally; Indian prime minister Narendra Modi is set to come to the U.S. for a week to discuss a plan to loosen restrictions on U.S. goods in a bid to ease simmering trade tensions and garner fresh investment into India’s flagging economy; + NFLX: In the battle to dominate the new entertainment landscape, Hollywood studios are imitating Netflix, transforming how they do business with writers, producers and stars—and how money is made in entertainment; +/- AMZN: About 18 months ago a new nonprofit group called Free and Fair Markets Initiative launched a national campaign criticizing Amazon’s business practices, but didn’t reveal that it was receiving funding from SPG, WMT, and ORCL; +/- AAPL: Camera technology has become an important differentiator in China, where Huawei leads rivals, a situation Apple hopes to change with the iPhone 11, which features cameras that are higher end than those on previous models; Intelligent Investor: “WeWork’s postponed IPO shows how hollow the narrative about the superiority of private markets can be,” and why it’s important for investors to wary of the myth that private markets are superior to public ones; H.O.T.S.: In a slow economy, investors appear to be setting a high bar for improvements in corporate earnings—but trouble can result when companies try to hit unrealistic targets; +/- AAPL: Tech giant is expected to have another slow year of iPhone sales, but that may work out well if its three new models do better than low official expectations; The Hong Kong government decided to peg its currency to the dollar during a time of turmoil to restore confidence, but its exchange-rate system should weather the storm.

FT (Weekend): The Fed’s move to step up efforts to reduce volatility in short-term lending markets may not last—U.S. banks and investors have warned that a market flare-up may occur again during quarter and year ends, when there is a typically a high-demand for cash; + GOOGL: Google claims to have built the first quantum computer that can carry out calculations beyond the ability of today’s most powerful supercomputers, a possibility eagerly anticipated by researchers; related story says Google chief Sundar Pichai is urging U.S. regulators not to rush into a crackdown on artificial intelligence; Big Read piece says the recent attacks on Saudi Arabian oil infrastructure not only caused the biggest disruption to the kingdom’s oil industry in 86 years, they exposed the vulnerability of the country to the simmering row between the U.S. and Iran; Lex Column: The most convincing explanation for Airbnb’s slow-mo IPO is that it needs to mollify employees clamoring to sell stock options that may expire soon; Newly appointed RBS chief Alison Rose has a reputation for quite competence, and she will need all of that and some political skills to succeed at one of the thorniest jobs in banking; T needs to slim down its balance sheet, and selling all or part of DirecTV is the best way to do so; Comment: For all its bluster and hubris, WeWork isn’t the Pets.com of 2019 or a bellwether of a dysfunctional market, says Philip Delves Broughton—it’s is a real business serving a real need, and it has a future.

NY POST: (Saturday): Lead business story reports on Carl Icahn’s planned move to Florida, where he will lease space in a as-yet-to-be-constructed office tower in a Miami suburb; + AAPL: Chief Steve Cook made an unannounced appearance at the company’s newly renovated Fifth Avenue store, where me mingled with customers waiting to buy the new iPhone 11; (Sunday): Distressed student loan borrowers in New York, are turning to slick Wall Street con artists who promise to lower repayments and facilitate loan forgiveness, but most such companies are scams; related story says high student loan indebtedness among a significant number of young college grads could negatively impact their chances of borrowing later in life for houses or cars.

>>> Barron's Weekend Summary: Cover story reports on the complex opioid supply c

Barron's Weekend Summary: Cover story reports on the complex opioid supply chain; Positive feature on REAL; Tech Trader says Softbank shares are highly discounted

* Cover story: Shipping tens of billions of prescription opioid pills to America’s pharmacies happened through complex supply chains involving various suppliers, drugmakers, distributors, and pharmacies—including JNJ, TEVA, CAH, and CVS—which now face a morass of intersecting opioid lawsuits, saddling them with expenses and future litigation that is highly political.

* Tech Trader: Positive on Softbank: Company’s value is 46% below the sum-of-its parts total, making it one of the most highly discounted publicly traded assets; its primary problems lie with the Vision Fund, which owns stakes in WORK, UBER, and We Company, all of which face major challenges—though the math still works powerfully against a Softbank bear case.

* Trader: The Fed never wants to appear as if it doesn’t have an answer, but even its own members can’t decide whether it should be cutting more or standing pat, so maybe the best it can do is what the market expects it to do; The market is telling us that climate change matters, so we can either listen—or just wait for the next bear market; For now, investors shouldn’t expect normally reliable foreign buyers to bid for U.S. bonds—the money-market tumult raises currency hedging costs for the U.S. dollar and reduces the yield that international investors can earn in U.S. markets.

* Profile: Story looks at Nicole Kornitzer, co-manager of the $374M Buffalo International fund, which has returned an average of 7.5% a year over the past decade, better than 83% of its foreign large-growth peers and well ahead of its benchmark (top 10 holdings: Sartorius Stedim Biotech, SAP, Kering, AON, LIN, Carl Zeiss Meditec, Schneider Electric, Tomra Systems, LCMH Moet Hennessy, IBN).

* Features: 1) The recent attacks on Saudi Arabian oil infrastructure offer three lessons: such facilities are vulnerable to new kinds of attacks; oil should get a longer-term bump of $3 to $5 to account for new geopolitical risks; and it will take a more fundamental shift in the markets to change recent trading patterns; 2) Positive on REAL: The company, which launched one of the year’s more under-the-radar initial public offerings, has professionalized the market for used luxury goods, and its approach has built trust with buyers, who don’t have to worry about counterfeits—and are willing to pay a premium for the service; 3) Positive on MSFT, JNJ, EHC, FANG, FB, Comcast, DAL: Barron’s screened to find seven stocks for the “economically agnostic,” offering GARR (growth at reduced risk) and/or SWAG (safety without avoiding growth)—in other words, stocks have core businesses robust enough to survive economic turbulence; 4) There’s a long-term risk looming in the $3.8T municipal bond market: Climate change raises the credit risk of an issuer by damaging its assets and tax base, with probably losers including the Gulf Coast, the South Atlantic seaboard, and Arizona.

* European Trader: Positive on Ferguson: UK-based plumbing and heating firm has been undervalued due to poor performance at its British business, but activist investor Nelson Peltz of Trian Partners hopes to split up the company and focus more on its profitable U.S. arm, which generates 90% of sales.

* Emerging Markets: Saudi Arabian markets weren’t rattled by the attacks on the kingdom’s oil platforms, partly because Saudi shares were already down 15% since May amid fading enthusiasm for the country’s move to join MSCI’s global emerging markets index.

* Commodities: “The attacks on Saudi oil facilities may have only briefly sliced daily crude output from the kingdom by more than half, but the risk remains to supplies from one of the world’s biggest exporters—and to the oil-rich Middle East.”

* Streetwise: For now, investors should be skeptical about reports that describe various streaming services as “winning” rights to key shows—the winners might turn out to be the sellers, and today’s prices, a peak, says columnist Jack Hough.