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U.S. and European stock futures saw muted moves early Tuesday as investors looked to earnings and clues from policy makers for the next catalyst. Yields on Treasuries stayed lower.
Asian stocks saw a mixed performance amid low volumes. Japanese shares dipped as traders returned from a holiday, indexes in Hong Kong and Shanghai slipped, and Australian equities were little changed. Futures on the S&P 500 Index were little changed after the U.S. stocks gauge ended Monday at a record. Oil held below $60 a barrel.
US After Hours
Nikkei -0.69% Hang Seng +0.18% CSI -0.41% Shanghai -0.18% Shenzen -0.08%
Eur$ 1.1257 CNH 6.8754 CNY 6.8747 JPY 108.07 GBP 1.2512 CHF 0.9853 RUB 62.69 TRY 5.7135 WTI$ 59.51 -0.10%
S&P -0.14% FTSE -0.16% Dax +0.06% SMI -0.25%
Macro :
- Mnuchin Says He Wants Deal With Congress on Debt Limit, Budget
- Key Route From Asia to Europe Resumed as Pakistan Opens Airspace
Keep an eye on :
- AIR FP : Europe Braces for $7 Billion U.S. Tariff Hit Over Airbus Dispute
- AST IM : Salini Impregilo Presents New Offer for Astaldi (1)
- AT1 GY : Aroundtown SA Announces Upsize of Capital Increase to EUR 600M
- AT1 GY : Aroundtown Offering Prices 84m Shares at EU7.15/Share
- ATL IM : Ferrovie Picks Atlantia for Alitalia Investor Group
- ATL IM : Di Maio: Not Walking Back on Autostrade Concession Revocation
- BAG LN : A.G. Barr Says Performance is Below Expectations
- BAYN GY : *BAYER ADRS JUMP AS MUCH AS 2.3% AFTER ROUNDUP VERDICT SLASHED
- BILL SS :
- BONAVA SS : Bonava Second Quarter Net Sales Beat Highest Estimate
- BRG NO : Borregaard 2Q Op. Revenue Matches Ests., Adj. Ebita Beats (1)
- BRBY LN : Burberry 1Q Comp. Sales Beat Est.; Maintains Outlook
- CRH ID : CRH to Sell Europe Distribution for Ent. Value EU1.64B Cash
- DKSH SW : DKSH First Half Net Sales 2.6% Below Estimates
- EMIS LN : EMIS Says Performance is in Line With Expectations
- EXPN LN : Experian 1Q Organic Rev At Constant FX +6%; Started Year Well(1)
- FSJ LN : James Fisher Gets Recent Contracts of Combined Value of GBP30m
- GAM SW : GAM to Pay Investors a Premium as Haywood’s Fund Is Wound Down
- GWI1 GY : Gerry Weber Reaches Investment Agreement With Robus, Whitebox
- HAS LN : Hays Sees Earnings in Line With Consensus
- HEMF SS : Hemfosa Second-Quarter Rental Income Rises to SEK705m
- HUSQB SS : Husqvarna Second Quarter Net Sales Miss Lowest Estimate
- HSTG LN : Hastings Sees One-Off Pretax Charge of GBP8.4m in FY
- ITV LN : ITV Risks Priced in, Correction in Shares Too Drastic: Liberum
- LSS FP : Lectra to Pay EU8 Million for 70% of Retviews, Plans to Buy Rest
- MC FP : LVMH Ties Up With Stella McCartney as Sustainable Fashion Surges
- COX FP : Nicox NCX 470 Phase 2 Study Results on Track for Early 4Q
- NOVN SW : Novartis: FDA Accelerates Review of Crizanlizumab
- OSR GY : Osram Gets Non-Binding Offer From AMS of EU38.50 Per Share
- OSR GY : Osram Admits Rival AMS Bid Has Dim Prospects for Success: React
- OSR GY : AMS to End Deal Talks With Osram
- PGHN SW : Partners Group AuM EU79.8b; Reconfirms 2019 Gross Client Demand
- RX FP : Recylex Shares to Resume Trading on Tuesday
- RYA LN : Ryanair Says Boeing 737 Max Delays to Slow Summer 2020 Growth
- SAN FP : Sanofi Bid to Revive Insulin Patents Gets September Hearing
- SCHA NO : Schibsted Second Quarter Ebitda NOK1.06 Bln
- SEMC SS : Semcon to Repurchase Up To 200,000 Ordinary Shares
- STLKN SW : Schmolz + Bickenbach Cuts FY Profit Views on Trade Conflicts (1)
- TEL NO : Telenor Second Quarter Ebitda Misses Lowest Estimate
- TEL NO : Telenor Wins Unconditional EU Approval to Buy DNA Majority Stake
- VOD LN : ACCC Says Vodafone to Compensate Customers Over Carrier Charges
- YAR NO : Yara Second Quarter Adjusted Ebitda Beats Highest Estimate
After Hours Summary: JBHT +6%, ARW -5% after earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: JBHT +6%
Companies trading higher in after hours in reaction to news: ABUS +3.4% (announced preliminary results from Phase 1a/1b trial of AB-506), VKTX +1.2% (hearing initiated with an Outperform at Oppenheimer)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: ARW -4.8% (reported preliminary Q2 results and announced planned wind-down of personal computer and mobility asset disposition business)
Companies trading lower in after hours in reaction to news: ATEX -4.9% (launched proposed follow-on public offering of $85 mln of common stock), RGEN -4% (commenced offering of $100 mln in common stock and $250 mln in convertible senior notes), EPRT -3.1% (announced secondary offering of 17.25 mln shares), MPW -2.7% (commenced public offering of 45.0 mln common shares; announced $1.75 bln acquisition of 24 hospital facilities), PBCT -1.2% (to acquire United Financial [UBNK] for approx. $759 mln in stock)
- Centrica (CENB TH) +2.1%
- Bayer (BAYN TH) +1.7%
- Bayer Gets Roundup Reprieve as Damages Cut in California Case
- LVMH (MOH TH) +0.8%
- Peugeot (PEU TH) +0.8%
- Sodexo (SJ7 TH) +0.7%
- Wirecard (WDI TH) +0.6%
- Wirecard Transforms Shopping Experience With Unique Smart Mirror
- Daimler (DAI TH) -0.9%
- H&M (HMSB TH) -1%
- Carl Zeiss Meditec (AFX TH) -1.3%
- Husqvarna (HRZ TH) -2.2%
- Husqvarna Second Quarter Net Sales Miss Lowest Estimate
- Coloplast (CBHD TH) -2.9%
- Coloplast Cut to Sell at DNB Markets; Price Target 700 Kroner
- Aroundtown (AT1 TH) -3.6%
- Aroundtown Offering Prices 84m Shares at EU7.15/Share
>>> Up
* A2A Upgraded to Neutral at Citi
* Aston Martin Upgraded to Hold at Jefferies; PT 10 Pounds
* Elekta Upgraded to Hold at Jefferies; PT 126 Kronor
* ITV Upgraded to Buy at Liberum
* Telenor Upgraded to Hold at DNB Markets; Price Target 183 Kroner
>>> Down
* Bossard Downgraded to Hold at Baader Helvea; PT 135 Francs
* Coloplast Cut to Sell at DNB Markets; Price Target 700 Kroner
* Enel Downgraded to Neutral at Citi
* Galapagos ADRs Downgraded to Market Perform at Raymond James
* Lloyds Downgraded on Rising Likelihood of No-Deal Brexit: JPM
* Pandox Downgraded to Hold at DNB Markets; PT 200 Kronor
* Safran cut to Neutral From Buy at Oddo
* Sartorius Stedim Downgraded to Reduce at Gilbert Dupont
* Virbac Downgraded to Add at Gilbert Dupont
>>> Initiation
* BMW Reinstated at Goldman With Neutral; PT 65 Euros
* Daimler Reinstated at Goldman With Sell; PT 42 Euros
* Fiat Chrysler Reinstated at Goldman With Sell; PT $13.50
* Glenveagh Rated New Buy at Berenberg; PT 1.15 Euros
* Green REIT Rated New Buy at Berenberg; PT 2 Euros
* Hibernia REIT Rated New Buy at Berenberg; PT 1.70 Euros
* Johnson Service Rated New Overweight at Barclays; PT 2.05 Pounds
* Peugeot Reinstated at Goldman With Buy; PT 26 Euros
* Renault Reinstated at Goldman With Neutral; PT 59 Euros
>>> Call
* Italian Utilities Face Big Downside Risks, Enel Cut at Citi
* Bossard Loses Only Buy as Baader Cites Weaker Growth Momentum
* BillerudKorsnas Results to Lead to Estimate Cuts, Jefferies Says
DAX:
- Bayer (BAYN TH) +1.8%
- Bayer Gets Roundup Reprieve as Damages Cut in California Case
- Wirecard (WDI TH) +0.5%
- Deutsche Bank (DBK TH) +0.3%
- Deutsche Bank Affirmed at BBB+ by S&P (1)
- Deutsche Telekom (DTE TH) -0.4%
- T-Mobile Deal Fix Gives Antitrust Chief Chance to Play Kingmaker
- Daimler (DAI TH) -0.9%
- Daimler Reinstated at Goldman With Sell; PT 42 Euros
MDAX:
- K+S (SDF TH) +0.7%
- Commerzbank (CBK TH) +0.7%
- Zalando (ZAL TH) +0.6%
- Osram (OSR TH) +0.1%
- AMS Ends Talks to Buy Osram in Boost for Private Equity Suitors
- Aroundtown (AT1 TH) -3.3%
- Aroundtown Offering Prices 84m Shares at EU7.15/Share
SDAX:
- Deutz (DEZ TH) +0.8%
- W&W (WUW TH) +0.6%
- Rhoen Klinikum (RHK TH) -1.2%
LVMH buys minority stake in Stella McCartney brand
Group seeks to burnish green credentials by partnering ethical fashion pioneer
LVMH has snapped up a minority stake in Stella McCartney’s eponymous brand, illustrating how the world’s largest luxury group by revenues is seeking to improve its environmental credentials.
The deal comes just over a year after ethical fashion pioneer Ms McCartney split from LVMH’s rival Kering, with whom she first launched her brand and had a 50-50 partnership.
LVMH said on Monday that Ms McCartney would continue as creative director and majority shareholder of the brand and will also become a special adviser on sustainability to Bernard Arnault, chairman and chief executive of LVMH, and its executive committee.
A life-long vegetarian, Ms McCartney does not use any leather or fur in her designs, and she has made ethical fashion a pillar of her label. The sale of a stake to LVMH is “to accelerate its worldwide development in terms of business and strategy,” the French fashion house said in a statement after European markets closed.
LVMH declined to comment on the size of the transaction or its financial terms, but said it would disclose more details about the tie-up in September.
Ms McCartney’s partnership with Kering lasted from its 2001 launch until March last year, when she bought back Kering’s 50 per cent stake to become sole owner. At the time, analysts believed Kering had made the move to focus attention on faster-growing brands such as Saint Laurent and Balenciaga.
Melania Grippo, a luxury goods analyst at Exane BNP Paribas, estimates the Stella McCartney brand has €280m-€300m in annual revenues. Ms Grippo said that while the deal will have a “limited impact” on LVMH’s accounts, it “confirms once again its ability to attract, nurture and develop brands”.
Mr Arnault said in a statement that he was “convinced of the great long-term potential” of Ms McCartney’s brand, adding: “A decisive factor was that she was the first to put sustainability and ethical issues on the front stage, very early on, and built her house around these.” Mr Arnault said that the deal “emphasises LVMH’s . . . commitment to sustainability”.
The tie-up reflects how luxury groups are trying to demonstrate a commitment to sustainability and ethics, from sustainable sourcing and supply-chain traceability, to reducing carbon dioxide emissions from energy consumption and guaranteeing the wellbeing of models.
At LVMH, Mr Arnault’s eldest son Antoine Arnault has played a key role in many of the group’s initiatives in these areas, including a partnership with the UN world heritage agency Unesco to safeguard biodiversity that was announced in May
Consumers and regulators are increasingly concerned about the environmental cost of fashion, pushing luxury houses such as LVMH and Kering to announce new commitments on sustainability.
A report in May by consultancy BCG and sustainable fashion groups, found that rapid growth of the global fashion industry risks “exerting an unprecedented strain on planetary resources” by raising annual production of fashion to more than 100m tonnes.
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