>>> Vivendi to appoint banks on Thursday for sale of Universal stake - source -

Vivendi to appoint banks on Thursday for sale of Universal stake - source - Reuters News

24-Jul-2019 16:01:14

PARIS, July 24 (Reuters) - French media group Vivendi VIV.PA is set to appoint several investment banks on Thursday for the sale of up to 50% of Universal Music Group, its most-prized asset, said a source close to the matter.

It has been a year since the Paris-based company said it would sell part of the division, unnerving investors and leaving equity analysts scrambling on the asset's valuation, with estimates ranging from 17 billion euros ($19 billion) for Redburn to 44 billion euros for JP Morgan.

The group, controlled by billionaire Vincent Bollore, is seeking to cash in on the growing public thirst for subscription and ad-based music streaming services, which have propelled Universal's profits over the last four years.

Universal is the world's biggest music label, home to artists like Taylor Swift, Drake, Kendrick Lamar and Lady Gaga.

Vivendi, which reports first-half earnings on Thursday, declined to comment.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • TER +14.6%, UMC +11.7%, EW +11.5%, SNAP +10%, CSTM +8.2%, MANH +7.1%, TRVG +6.6%, TXN +5.8%, VFC +3.7%, UPS +3.3%, CMG +3%, CSL +2.6%, CNI +2.5%, FLIR +2.4%, NAVI +2.2%, RHI +2.2%, ALXN +2.1%, DFS +1.8%, RNR +1%, SPN +0.9%, SIX +0.9%

Select semiconductor stocks trading higher:

  • ADI +2.6%, NXPI +2%, ON +1.5%, MXIM +1.3%, SOXX +0.9%, SMH +0.8%, MU +0.5%

Other news:

  • JNCE +27.1% (Jounce Therapeutics provides update on strategic collaboration with Celgene [CELG] -- Celgene has licensed worldwide rights to JTX-8064)
  • ITCI +12.5% (provides FDA Advisory update; may result in extension of PDUFA target date),
  • THC +7.9% (to pursue a tax-free spin-off of its Conifer business as a separate, independent publicly traded company)
  • GHDX +7.5% (to join S&P SmallCap 600, effective prior to the open on July 29)
  • OLBK +4.5% (Old Line Bancshares merging with WesBanco (WSBC)
  • OLBK to receive 0.7844 shares of WSBC, valuing the company at $500 mln, or $29.56/share)
  • WFC +0.6% (confirms increase of quarterly common stock dividend to $0.51/share from $0.45/share and increases common stock repurchase authority by an additional 350 mln shares)
  • CELG +0.5% (Jounce Therapeutics provides update on strategic collaboration with Celgene -- Celgene has licensed worldwide rights to JTX-8064)

Analyst comments:

  • MPW +3.7% (upgraded to Buy from Hold at Stifel)
  • CE +1% (upgraded to Overweight from Neutral at JP Morgan)

>>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • JNCE +24.7%, TER +14.6%, SNAP +11.1%, EW +10.6%, ITCI +8.7%, MANH +8.5%, GHDX +7.5%, TXN +6.6%, OLBK +4.5%, CSL +4%, ADI +3.4%, DFS +2.9%, CMG +2.9%, RHI +2.9%, CNI +2.5%, NAVI +2.2%, MXIM +1.3%, CSTM +1.2%, SOXX +1%, TLRY +1%, RNR +1%, SPN +0.9%, UMC +0.9%, SIX +0.9%, SMH +0.8%, CELG +0.8%, NXPI +0.7%

Gapping down:

  • IRBT -17.1%, SGEN -5%, HCSG -3.9%, CROX -2.5%, WIX -2.1%, AVD -1.4%, FB -1.3%, WSBC -1.2%, GOOGL -1%, AMZN -0.9%, HLT -0.6%

>>> What to look at today - 24th of July 2019

Most stocks rose in Asia following news that U.S.-China trade talks will resume in person next week. Nasdaq futures fell after the U.S. opened an antitrust probe into big technology companies.
The dollar hit a two-week high against the euro ahead of Thursday’s European Central Bank meeting. Australia’s dollar fell after an influential economist brought forward his forecast for the next interest-rate cut by the nation’s central bank. Equity benchmarks were up in Tokyo, Sydney, Shanghai and Hong Kong, and slipped in Seoul. Futures on the S&P 500 Index were also little changed after that gauge climbed back above 3,000 Tuesday. Crude oil advanced for a fourth session, trading around $57 a barrel in New York.
US after HOurs IRBT -17%, TER +17%, EW +11.5%, SNAP / MANH +10%, TXN +7% among notable earnings/guidance movers

Nikkei +0.36% Hang Seng +0.71% CSI +0.92% Shnaghai +0.88% Shenzen +1.27%

Eur$1.1149 CNH 6.8828 CNY 6.8808 JPY 108.14 GBP 1.2443 CHF 0.9861 RUB 63.21 TRY 5.7081 WTI$ 57.03 +0.46%

S&P +0.32% EuroStoxx -0.09%FTSE -0.15% Dax +0.03% SMI -0.12%

Macro :
- White House Says It Backs Bipartisan Bill to Lower Drug Prices
- Oil Rallies as U.S.-China Meeting Rekindles Hopes for Trade Deal
- Wired Linguist Decodes How Internet Alters Language: Red Dot Lit

Keep an eye on :
- AAL LN : Anglo American Downgraded to Hold at Liberum
- AKZA NA : Akzo Nobel 2Q Adjusted Operating Income Beats Est. (1)
- AXA NO : Axactor SE Second Quarter Ebitda Beats Highest Estimate
- BOBNN SW : Bobst First Half Sales CHF736.8 Mln
- BDRILL NO : Borr Drilling Files to Offer 5M Shares in U.S. IPO
- CAV1V FH : Caverion Second Quarter Adjusted Ebitda Misses Lowest Estimate
- CLN SW : Clariant CEO Occhiello Quits in the Middle of Talks With Sabic
- 1COV GY : Covestro Full Year Ebitda Forecast Midpoint 2.9% Above Estimates
- DAI GY : Daimler Still Sees FY EBIT Significantly Below Year Ago (1)
- DSY FP : Dassault Systemes Sees FY EPS EU3.45-EU3.50
- DBK GY : Deutsche Bank 2Q Net Loss EU3.2b; Trading Revenues Miss
- DBK GY :
- DWS GY : DWS 2Q Net Inflows, Pretax Profit Beat Estimates
- RFGN SW : EFG International Assets Under Management CHF147.6 Bln
- FLOW NA : Flow Traders Second Quarter Net Trading Income Misses Estimates
- GIVN SW : Givaudan to Buy Drom; No Terms
- IBE SM : Iberdrola Readies Sales of Offshore Farms: El Confidencial
- ICAD FP : Icade Agreed to Buy Gennevilliers Block Near Paris for EU123M
- ITP FP : Interparfums Sees First Half Operating Margin Above 15%
- IREN IM : Iren CEO Confirms Strong Interest in Bidding for Sorgenia: Sole
- KPN NA : KPN Second Quarter Adjusted Ebitda Beats Highest Estimate
- LONN SW : Lonza 1H Sales Match Estimates; Confirms ’22 Mid-Term Guidance
- MTRO LN : Metro Bank to Start Search for Next Chairman: Sky
- B4B GY : Metro AG Advises Against Accepting EP Global Offer
- NEX FP : Nexans Sees 2019 Improved Ebitda Outlook, at EU360m-EU390m
- OBEL BB : Orange Belgium Second Quarter Adjusted Ebitda Beats Estimates
- UG FP : PSA 1H Profit Margin Widens to 8.7%; Lowers Mkt Forecasts PSA 1H Profit Margin Widens to 8.7%; Lowers Mkt Forecasts
- UG FP : PSA Working on Capacities In China, CFO Says
- RENE PL : REN to Buy Transemel in Chile for $167m From CGE, Naturgy
- REP SM : Repsol Board Proposes Buyback for About 5% of Share Capital
- SK FP : SEB Sees Full Year Op. Result From Activity About +6%
- SKAB SS : Skanska Second Quarter Revenue Beats Highest Estimate, Skanska Says Construction Margin Improves to 2.9% From 1.4%
- SUN SW : Sulzer Boosts Full Year Net Orders Forecast
- TIM IM : TIM, Inwit Directors To Meet on Vodafone Partnership
- O2D GY : Telefonica Deutschland Confirms Full-Year Forecast
- UPM FH : Uruguay Peso Soars by Most in 2 1/2 Years on Giant Investment
- VOD LN : Vodafone Faces High Court Battle Over 4G Patent Claim
- VOW3 GY : Nissan Cuts Would Push Global Auto Industry Toll Beyond 50,000

>>> US After Hours Summary: IRBT -17%, TER +17%, EW +11.5%, SNAP /

TICKER ALERT: WRAPX

After Hours Summary: IRBT -17%, TER +17%, EW +11.5%, SNAP / MANH +10%, TXN +7% among notable earnings/guidance movers

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: TER +17.1%, EW +11.5%, SNAP +9.9%, MANH +9.8%, TXN +6.7%, CSL +4.2% (light volume), CMG +3.6%, DFS +2.3%, NAVI +2.2%

Companies trading higher in after hours in reaction to news: JNCE +36.9% (provides update on strategic Celgene [CELG] collaboration -- Celgene has licensed worldwide rights to JTX-8064), GHDX +7.5% (to join S&P SmallCap 600), ITCI +5.6% (modestly rebounding from today's 32% decline), OLBK +5.2% (Old Line Bancshares merging with WesBanco [WSBC]; OLBK to recieve 0.7844 shares of WSBC, valuing the company at $500 mln, or $29.56/share), TLRY +1.6% (Smith & Sinclair confirms it has been acquired for an undisclosed figure by Tilray), WFC +0.4% (confirms increase of quarterly common stock dividend to $0.51/share from $0.45/share and increases common stock repurchase authority by an additional 350 mln shares)

Semi/chip names are higher following Teradyne (TER) / Texas Instruments (TXN) quarterly reports (ETFs  SMH +1.3%, SOXX +1.2%): ADI +2.7%, NXPI +2%, ON +1.5%,  MXIM +1.3%, MU +0.9%

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: IRBT -17.4%, SPN -2.8%, WSBC -0.8% (also Old Line Bancshares merging with WesBanco; OLBK to recieve 0.7844 shares of WSBC, valuing the company at $500 mln)

Companies trading lower in after hours in reaction to news: SGEN -3.9% (proposed public offering of 6.0 mln shares of common stock), CROX -2.4% (still checking - co is scheduled to report earnings Aug 1), SD -2.1% (light volume; filed for $500 mln mixed securities shelf offering), FB -1.7%, AMZN -1.2%, GOOGL -0.9%, MSFT -0.4% (lower on DOJ antitrust review news; DOJ confirmed it is "reviewing the practices of market-leading online platforms")

>>> Europe : Brokers Upgrades & Downgrades - 24th of July 2019

>>> Upgrade
* Asos Upgraded to Equal-weight at Morgan Stanley; PT 21 Pounds
* Celanese Upgraded to Overweight at JPMorgan; PT $120
* Fraport Upgraded to Outperform at MainFirst; PT 90 Euros
* Lindt & Spruengli Raised to Equal-weight at Barclays
* Morgan Advanced Upgraded to Buy at Jefferies
* Norma Upgraded to Hold at SocGen; PT 30 Euros
* Prysmian Upgraded to Buy at Kepler Cheuvreux; PT 23 Euros

>>> Downgrade
* BHP Group PLC Downgraded to Hold at Liberum
* DSV Downgraded to Sell at Handelsbanken; Price Target 590 Kroner
* Heidelberger Druck Downgraded to Hold at Berenberg
* HSBC Downgraded to Hold at Jefferies; PT 6.91 Pounds
* Petra Diamonds Downgraded to Sell at Berenberg
* Rio Tinto Downgraded to Hold at Liberum
* Swedish Match Downgraded to Neutral at Citi
* Whitbread Downgraded to Reduce at Kepler Cheuvreux; PT 43 Pounds

>>> Initiation
* Boliden Rated New Market Perform at BMO; PT 230 Kronor
* Trainline Rated New Hold at Peel Hunt; PT 4 Pounds
* Wincanton Rated New Buy at HSBC; PT 3.11 Pounds

>>> Call
* Asos Expectations Reset, Raised to Equal-Weight: Morgan Stanley

>>> Upgrade
* Asos Upgraded to Equal-weight at Morgan Stanley; PT 21 Pounds
* Celanese Upgraded to Overweight at JPMorgan; PT $120
* Fraport Upgraded to Outperform at MainFirst; PT 90 Euros
* Lindt & Spruengli Raised to Equal-weight at Barclays
* Morgan Advanced Upgraded to Buy at Jefferies
* Norma Upgraded to Hold at SocGen; PT 30 Euros

>>> Downgrade
* BHP Group PLC Downgraded to Hold at Liberum
* DSV Downgraded to Sell at Handelsbanken; Price Target 590 Kroner
* Heidelberger Druck Downgraded to Hold at Berenberg
* HSBC Downgraded to Hold at Jefferies; PT 6.91 Pounds
* Petra Diamonds Downgraded to Sell at Berenberg
* Rio Tinto Downgraded to Hold at Liberum
* Swedish Match Downgraded to Neutral at Citi

>>> Initiation
* Boliden Rated New Market Perform at BMO; PT 230 Kronor
* Trainline Rated New Hold at Peel Hunt; PT 4 Pounds
* Wincanton Rated New Buy at HSBC; PT 3.11 Pounds

>>> Call
* Asos Expectations Reset, Raised to Equal-Weight: Morgan Stanley

FT : UK home sales down 16.5 per cent, suggest HMRC figures Political uncertaint

UK home sales down 16.5 per cent, suggest HMRC figures
Political uncertainty hitting the market, say market commentators

The number of homes sold in the UK in June dropped by 16.5 per cent compared with the same month last year, as property experts said political uncertainty was affecting confidence among buyers and sellers.

Residential property transactions also fell to 84,490 in June 2019 from 93,520 in May — a drop of nearly 10 per cent, according to data released on Tuesday by HM Revenue & Customs.

Lucian Cook, director of residential research at estate agent Savills, described the data as “the first solid evidence that the backdrop of political and associated economic uncertainty has dented housing market activity, which has held up surprisingly well until now”.

Demand for housing has been weak at the top end of the market in London and the Southeast in recent months. “General uncertainty over UK fortunes and uncertainty over Brexit has impacted prime residential demand,” said Noble Francis, economics director at the Construction Products Association, a trade body. “That has spread to falls in demand in general London housing.”

Mr Francis said some international buyers had held off purchasing in the event that a no-deal Brexit were to cause a slide in sterling, which would allow them to buy at a discount. “You might as well see how far the demand falls before you invest,” he said.

Mr Cook was cautious about drawing strong conclusions from the latest monthly figure, since it could be associated with the “intense uncertainty” created when UK prime minister Theresa May announced her resignation at the end of May. “While housing transactions in the months of June are well down compared with those in the same month a year ago, total transactions in the past year are only 2.5 per cent down on the year to the end of June 2018.”

HMRC said the figures were provisional. After final numbers of completions are received, adjustments can be significant. Neal Hudson, director at Residential Analysts, noted that HMRC reported a drop of 5.8 per cent in May compared with the previous year, but later adjusted that estimate to a gain of 1.7 per cent.

“I don’t want to totally discount the fall,” said Mr Hudson, “but given what happened to last month’s data . . . it’s not immediately clear whether it is a data issue or a market issue.”

He cautioned that other market indicators did not yet support the sharp fall in transaction numbers. “[The drop] would suggest that there’s something quite severe in the market, but I don’t see it coming through that severely in any other data set yet.”

The UK housing market has yet to return to its 2006 peak of more than 140,000 monthly home sales.
Comparable year-on-year declines occurred in April 2017, a year after a spike in sales ahead of the introduction of a stamp duty surcharge on second homes, and in 2009, when a stamp duty “holiday” lifting the minimum threshold for the charge came to an end.

Stamp duty emerged as an issue in the Conservative party leadership contest, as the winning candidate Boris Johnson proposed eliminating it for homes valued at less than £500,000.

Analysts noted the mixed regional picture across the UK housing market. Despite significant drops in demand in more expensive regions such as London and the Southeast, there has been an uplift in number of transactions in the North and West.