>>> Telecoms watchdog says Swisscom overcharged rivals - Reuters News

Telecoms watchdog says Swisscom overcharged rivals - Reuters News

12-Feb-2019 09:48:24

Adds details and background, Swisscom response

ZURICH, Feb 12 (Reuters) - Switzerland's Federal Communications Commission (ComCom) has retroactively cut some regulated prices that Swisscom SCMN.S charges rivals, the agency said on Tuesday after concluding that some of its prices were too high.

"Responding to requests from Sunrise SCMN.S and Salt, the Federal Communications Commission has reviewed the prices charged for the regulated telecoms services offered by Swisscom. In many cases, these prices have been reduced with retroactive effect for the 2013–2016 period," it said in a statement.

The regulator made the move after calculating prices for the first time on the basis of modern fibre-optic technology rather than conventional copper cabling as in the past.

Swisscom said it was considering whether to file an appeal with the federal administrative court. The government-controlled telecommunications company said it had already built financial reserves for the case and reaffirmed its 2019 outlook. (Full Story)

Its shares nevertheless turned negative after the news and were down 0.4 percent by 0835 GMT.

ComCom determined that rates for unbundled copper subscriber lines should have been some 10–25 percent lower than those offered by Swisscom, while rates for carrier line services were to be reduced by between 65 and 80 percent.

The regulator saw no problem with cable duct prices but lowered average costs for network interconnection by around 10 percent.

Swisscom took issue with some of ComCom's conclusions. "It is only the reductions for leased lines of between 65 percent and 80 percent that Swisscom finds difficult to comprehend," the company said.

>>> What to look at today - 12th of February 2019

Japanese stocks led the Asia-Pacific region higher after a drop in the yen, and U.S. equity futures advanced on news of a deal among American lawmakers to avert another federal government shutdown. Treasury yields ticked higher.
The dollar held gains, trading near the strongest since early January, having recouped most of the losses stemming from the Federal Reserve’s dovish pivot since the start of the year. U.S. futures added to gains as President Donald Trump spoke at a rally without casting any immediate shadow over a deal in principle among legislators to fund the government. With high-level trade talks looming, he also said he doesn’t want China to have a “hard time.”
The yuan stabilized onshore after a Monday drop. Australian and Korean shares saw modest gains, while the Hong Kong and Shanghai benchmarks fluctuated. European futures tipped a firmer open.
US After Hours VRNS -20%, CMP -9%, CHGG +9%, BRKR +4%, BHF +3% following earnings/guidance, EA +6% on latest Apex Legends update

Nikkei +2.61% Hang Seng +0.08% CSI +0.72% Shanghai +0.66% Shenzen +1.16%

Eur$ 1.1284 CNH 6.7858 CNY 6.7755 JPY 110.53 GBP 1.2866 CHF 1.0043 RUB 65.73 TRY 5.2693 WTI$ 52.59 +0.34%

S&P +0.52% EuroStoxx +0.47% FTSE +0.17% DAX +0.72% SMI +0.31%

Macro :
- European Cash Volumes ‘Very Weak’ Year-to-Date: Morgan Stanley
- May Seeks More Time for Brexit Talks as No-Deal Split Fears Grow

Keep an eye on :
- AF FP : Dutch Finance Minister Backs KLM Airline CEO Elbers: FT
- AST IM : Salini Rescue Plan for Astaldi in Final Stages: Messaggero
- BKIA SM : Spanish Banks Face Downside Risk From Rebased Rates: Jefferies
- BARC LN : Barclays Might Use Buybacks to Mute Bramson Attack, Analysts Say
- BVIC LN : Britvic Shares to Take a Break, Rating Cut at Morgan Stanley
- CEC GY : Ceconomy to Eliminate Organizational Duplication: Handelsblatt
- CEVA SW : CMA CGM to Keep Ceva Listed in Zurich if Doesn’t Get All: Echos
- COFA FP : Coface Full Year Net Income 2.3% Above Estimates
- DIA SM : *DIA STARTS ROADSHOW AHEAD OF CAPITAL INCREASE: EXPANSION
- EDF FP : Levy Likely to Be Reconfirmed as CEO of France’s EDF: Figaro
- ELK NO : Elkem Fourth Quarter Revenue 3.0% Above Estimates
- ERICB SS : Ericsson, Intel Partner on Next-Generation Hardware Management
- EI FP : Essilor International Says Agreed to Buy Germany’s Brille24
- ENX FP : Euronext Says Equity Cross-Book Issue Has Been Resolved
- ENX FP : European Cash Volumes ‘Very Weak’ Year-to-Date: Morgan Stanley
- GEN DC : Genmab Gets U.S. FDA Approval of Darzalex Split Dosing Regimen
- GBG LN : GB Group to Acquire IDology for $300m Enterprise Value
- KER FP : Kering FY Recurring Operating Income EU3.94b, Est. EU3.89b, *KERING'S GUCCI 4Q COMPARABLE SALES GROWTH 28.1%; EST. 27%
- KVAER NO : Kvaerner Fourth Quarter Adjusted Ebitda Misses Estimates
- LEHTO FH : Lehto FY Op. Profit Falls More Than 40% as Net Sales Rise
- MRK GY ; Merck KGaA, Pfizer: FDA Accepts SBLA for Bavencio plus Inlyta
- B4B GY : Metro Profit Falls on Russia Price Cuts, Ruble Devaluation
- ML FP : Michelin CEO Forecasts Operating Income Growth in 2019
- MITRA BB : Mithra Signs 20-Yr Pact for Myring W/ Itrom Pharma Group in UAE
- MOB SS : Moberg Pharma, Bayer Sign License Pact for MOB-015 in Europe
- MOB SS : Moberg Pharma Divests OTC Business for $155m; Ebitda Beats Est.
- NETB SS : NetEnt Fourth Quarter Revenue Meets Estimates
- NRS NO : Norway Royal Salmon Cuts Full Year Harvest Forecast
- H24 GY : Home24 Shuffles Board, Extends Co-CEO Schaback’s Contract
- PWTN SW : Artisan Partners Encourages Panalpina to Reevaluate DSV Offer
- PSG SW : *PROSEGUR, PROSEGUR CASH REFINANCE TOTAL EU500M DEBT: EXPANSION
- RAND NA : Randstad Fourth Quarter Revenue Meets Estimates
- REC NO : REC Silicon Fourth Quarter Ebitda Loss $3.8 Mln
- RNO FP : Nissan CEO to Meet With Renault Chairman in Japan: Kyodo
- G24 GY : Scout24 Full Year Revenue Meets Estimates
- SPI LN : Spire Faces Worsening Market, CS Gives Street-Low Price Target
- TETY SS : Tethys Oil Sees 2019 Production Average 12,000-13,000 Bopd
- TUI LN : TUI’s Seasonal First-Quarter Loss Doubles on Heat Wave, Brexit
- UNI SM : *UNICAJA WEIGHS SELLING REAL ESTATE PORTFOLIO IN 2019: EXPANSION
- VONN SW : Vontobel FY Net New Money CHF5b, Sees ‘Challenging’ 2019
- WES NA : Wessanen Sees Full Year Adjusted Ebit Margin +8% To +9% (1)
- WIHL SS : Wihlborgs Full Year Rental Income Meets Estimates
- XXL NO : XXL Fourth Quarter Ebitda Misses Estimates

>>> Europe : Brokers Upgrades & Downgrades - 12th of February 2019

>>> Up
* Galp Upgraded to Neutral at Goldman; PT 18 Euros
* Leoni Upgraded to Buy at Quirin Privatbank AG; PT 26 Euros
* Polymetal Upgraded to Neutral at JPMorgan; PT 8.80 Pounds
* Rio Tinto Upgraded to Buy at Goldman
* Telenor Upgraded to Overweight at JPMorgan; PT 176 Kroner
* Unipol Upgraded to Buy at Kepler Cheuvreux; PT 4.85 Euros

>>> Down
* Bankia Downgraded to Underperform at Jefferies
* BE Semiconductor Cut to Hold at Kepler Cheuvreux; PT 21 Euros
* BHP Group PLC Downgraded to Neutral at Goldman
* Britvic Cut to Equal-weight at Morgan Stanley; PT 9 Pounds
* Efore Downgraded to Reduce at Inderes; PT 6 Cents
* Fiat Chrysler Downgraded to Add at AlphaValue
* GEA Group Downgraded to Sector Perform at RBC; PT 21.50 Euros
* Marimekko Downgraded to Sell at Inderes; Price Target 22 Euros
* Spire Healthcare Downgraded to Underperform at Credit Suisse

>>> Initiation
* Amigo Rated New Hold at HSBC; PT 2.80 Pounds
* Auto Trader Rated New Hold at HSBC; PT 4.65 Pounds
* Aveva Rated New Reduce at HSBC; PT 25 Pounds
* Big Yellow Group Rated New Buy at HSBC; PT 10.60 Pounds
* Boohoo Rated New Buy at HSBC; PT 2.40 Pounds
* Borregaard Rated New Buy at Berenberg; PT 95 Kroner
* British Land Rated New Sector Perform at RBC; PT 5.50 Pounds
* Clarkson Rated New Hold at HSBC; PT 26 Pounds
* Coats Rated New Reduce at HSBC; PT 70 Pence
* Dechra Pharma Rated New Buy at HSBC; PT 27.70 Pounds
* Derwent London Rated New Underperform at RBC
* Diploma Rated New Hold at HSBC; PT 13.25 Pounds
* FORTEC Elektronik Rated New Buy at Montega; PT 26 Euros
* FDM Group Rated New Buy at HSBC; PT 10.10 Pounds
* Genus Rated New Buy at HSBC; PT 26.50 Pounds
* Greggs Rated New Hold at HSBC; PT 16 Pounds
* Hammerson Rated New Sector Perform at RBC; PT 3.70 Pounds
* Hill & Smith Rated New Buy at HSBC; PT 14 Pounds
* Johnson Service Rated New Buy at HSBC; PT 1.48 Pounds
* JTC PLC Rated New Buy at HSBC; PT 4.60 Pounds
* KPN Reinstated at Gabelli With Buy
* Kuros Biosciences Reinstated Buy at NIBC Bank N.V.; PT 8 Francs
* Land Sec. Rated New Outperform at RBC
* Meggitt Rated New Buy at HSBC; PT 6.45 Pounds
* Midwich Rated New Buy at HSBC; PT 7 Pounds
* S4 Capital Rated New Hold at HSBC; PT 1.35 Pounds
* Safestore Rated New Buy at HSBC; PT 6.70 Pounds
* Stobart Rated New Reduce at HSBC; PT 1.38 Pounds
* Stock Spirits Rated New Buy at HSBC; PT 2.90 Pounds
* Sanne Group Rated New Buy at HSBC; PT 7.15 Pounds
* Segro Rated New Sector Perform at RBC; PT 6.25 Pounds
* Derwent London Rated New Underperform at RBC
* Tritax Big Box Rated New Outperform at RBC
* TT Electronics Rated New Buy at HSBC; PT 2.65 Pounds

>>> Call

>>> US After Hours Summary: VRNS -20%, CMP -9%, CHGG +9%, BRKR +4%

After Hours Summary: VRNS -20%, CMP -9%, CHGG +9%, BRKR +4%, BHF +3% following earnings/guidance, EA +6% on latest Apex Legends update

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CHGG +9.4%, PYX +8.7%, RAMP +7.8%, MIME +7.4%, SBLK +4.5%, BRKR +3.9%, BHF +3.1%, RNG +2.9%

Companies trading higher in after hours in reaction to news: EA +5.9% (following Apex Legends update -- has more than 25 million players), ZTO +1.2% (still looking around)

Select Gilead (GILD) NASH competitors are higher in after hours trade: VKTX +9.6%, MDGL +6.8%, ICPT +1.4%

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: VRNS -19.8%, LABL -16.6% (also Board is exploring strategic alternatives), BRS -14.7% (also terminates acquisition plans, announces CEO retirement), VECO -10.8%, MGI -9.3%, CMP -8.8%, LTHM -7.8%, AMKR -4.7%, OHI -4.4%, FARM -2.8%, MOH -1.5%

Companies trading lower in after hours in reaction to news: NKTR -9.4% (indicated lower after abstract on NKTR-214 + nivolumab in first-line advanced/metastatic urothelial carcinoma was released; will host call on Feb 15), XERS -4.8% (ticking lower; proposed 5 mln share common stock public offering), GILD -3.9% (top-line data from Phase 3 STELLAR-4 study did not meet the primary endpoint), MITT -3.7% (announces underwritten public offering of 3.0 mln shares of common stock), PMT -2.9% (announces underwritten public offering of 7.0 mln common shares), NMFC -2.9% (commences underwritten offering of 3,750,000 shares of its common stock), USAT -2.7% (files to delay its 10-Q due to previously disclosed restatement plans), ABEO -1.5% (appoints João Siffert, M.D. as CEO, effective immediately), UA -1.3% (ahead of earnings tomorrow before the open)


>>> US Close Dow -0.21% S&P +0.07% Nasdaq +0.13% Russell +0.84% VIX +1.59%

Closing Stock Market Summary

The S&P 500 increased 0.1% on Monday in a lackluster session. The major averages wavered around their flat lines throughout the day with investors preferring to wait and see for progress on U.S.-China trade talks.

The Nasdaq Composite gained 0.1%, aqad the Dow Jones Industrial Average lost 0.2%. The Russell 2000, meanwhile, outperformed with a gain of 0.8%.

Stocks began the day modestly higher amid optimism surrounding U.S.-China trade talks, which resumed in Beijing on Monday. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will partake in the the week-long round of negotiations Thursday and Friday. 

The S&P 500 industrials (+0.6%) and energy (+0.5%) sectors outperformed the broader market. Conversely, the communication services (-0.6%), health care (-0.1%), and utilities (-0.1%) sectors were the lone groups to finish with losses.

Relative strength from the transport stocks underpinned the outperformance of the industrial sector. The Dow Jones Transportation Average increased 1.3%, led by gains from Norfolk Southern (NSC 176.95, +5.49, +3.2%) and Avis Budget (CAR 27.58, +1.90, +7.4%). 

Norfolk Southern rose after it announced a strategic financial plan to target a full year operating ratio of 60% by 2021. Avis Budget rose after Goldman Sachs "double" upgraded the stock to 'Buy' from 'Sell' and increased its target price to $35 from $30, citing improved attractiveness in its valuation and seeing its positioning as favorable versus industry peers.

On the other hand, Loews Corp (L 44.56, -2.91, -6.1%) was one of the worst-performers in the S&P 500 after the company reported a Q4 loss of $0.53 per share. Its disappointment was construed as company-specific, as the S&P 500 financial sector gained 0.3%.

Separately, there was some speculation about an M&A deal within the health care space. NuVasive (NUVA 56.12, +6.57) climbed 13.3% amid reports that the company is in talks to be acquired by Smith & Nephew (SNN 38.44, -1.75, -4.4%) for over $3 billion. 

U.S. Treasuries finished the day on a lower note, pushing yields higher across the curve. The 2-yr yield increased two basis points to 2.48%, and the 10-yr yield increased three basis points to 2.66%. The U.S. Dollar Index rose 0.4% to 97.05, setting a new high for 2019. WTI crude lost 0.7% to $52.39/bbl.

Investors did not receive any economic data on Monday.

Looking ahead, investors will receive the NFIB Small Business Optimism Index for January and the JOLTS - Job Openings report for December on Tuesday.

  • Russell 2000 +12.6% YTD
  • Nasdaq Composite +10.1% YTD
  • S&P 500 +8.1% YTD
  • Dow Jones Industrial Average +7.4% YTD

9to5 : Multiplying Apple’s store count isn’t the sweet solution to customer expe

Multiplying Apple’s store count isn’t the sweet solution to customer experience many hope for
Since Apple announced that Angela Ahrendts is passing her role as senior vice president of Retail to longtime leader Deirdre O’Brien, many Apple enthusiasts have arrived at the conclusion that the company’s stores are in dire need of radical change. Valid complaints of low appointment availability, slow service, and overcrowding have inflated themselves into an online meme that Apple store visits are becoming as unpleasant as the DMV. One of the most commonly prescribed antidotes is to “just build more stores.”










Critics argue that by simply growing its store count, Apple can solve capacity issues and make a better retail experience. On Friday, my colleague Ben Lovejoy echoed the sentiment, saying, “Open some more damn stores! Can anyone explain to me why Apple doesn’t do this?” Sure.
The Statistics
Let’s begin by looking at the facts. Apple currently operates 506 retail locations across five continents, around half of which are concentrated in the United States. While over 500 stores might sound like a lot, it’s roughly half the number of locations Best Buy operates, and a tiny fraction of the 28,000+ Starbucks locations worldwide. Many countries have no Apple Store at all. Apple’s retail team of over 70,000 employees handles the traffic of more than 500 million visitors per year.
In a December 2018 press release announcing a new Austin, Texas campus, Apple stated it “plans to add more stores and reimagine the customer experience at many existing retail locations across the country.” Another press release this past January announcing the rollout of 58 new Today at Apple sessions noted, “Apple is upgrading the existing fleet of stores with design elements that greatly increase the store’s Today at Apple sessions and capacity.”
How will these changes manifest themselves? History sets a clear precedent.
In 2018, Apple added nine store locations (designated with a new store number) and rebuilt or moved 17 existing stores to larger and more modern spaces. 24 stores received facelifts by losing their Genius Bars in favor of Forums and Video Walls. Each of these 50 changes are detailed in our comprehensive 2018 Apple retail field guide. In 2019, Apple plans to create 70 new Forums, meaning a slightly faster pace of progress can be expected. As of publication, just one location has a set completion date.
The Architecture
So why not just crank up the dial? Advocating for a rapid expansion tragically discounts the Goliath effort that goes into opening a modern Apple store. While you might be content with a fleet of the modest mall shops of the iPod era, Apple certainly is not. The company has repeatedly said it thinks of stores as its “largest product.” Just like new iPhone features are implemented with cautious consideration, Apple’s retail development adheres to similar uncompromising scrutiny in site location and building design. Even if Apple decided to double its store count today, the results would not begin to show for another 2-3 years.
If you’re not able to visit a contemporary Apple store completed in the last year or two, fire up the Apple Store app on your iPhone and browse through the list. Even the lowliest store remodels demand more attention to detail and architectural prowess than flagships of years past. As older designs shake out of the project queue, the minimum standards will only rise. Take a look at the nine wholly new locations opened last year:
These are the kinds of new stores Apple opens now, and nothing less. Asking for a significant uptick in store count is asking Apple to churn out an endless quantity of award–winning landmark destinations. If you subscribe to the notion that retail is a product, asking for more modest stores is like wishing for Apple to compromise on hardware quality. A decade-long news cycle of doom and gloom in the retail world has endlessly proven that to be average is to die.
The People
Scaling store count also puts a strain on talent and training qualified employees. In the wake of Angela Ahrendts’ departure, some have called for Apple to roll back its community initiatives and become entirely service oriented. It’s not going to happen. Today at Apple is a huge part of Retail now, and it won’t just disappear. Would Apple have spent the last 25 months renovating the most coveted commercial property on Fifth Avenue in New York City to be more suited for sessions if this wasn’t a key part of the strategy?
At many new locations and in major markets, Apple offers exclusive Today at Apple performances and events in addition to the normal catalog of sessions. Beyond the 3,000+ Creative Pros already specialized in teaching sessions, constantly scheduling new original content requires local teams of program producers and vibrant communities of skilled artists willing to share their work. Scaling store count means building a global network of talented event planners to staff performance venues.
Pragmatic Thinking
“We are now opening fewer, larger stores so that you can get the full experience of everything that’s Apple,” Angela Ahrendts said just last month in an interview with Vogue Business. Betting against official company language is rarely productive, even when the person that spoke it will soon be succeeded.
As the rate of store openings falls, the rate of store closures may also rise. Apple shuttered a store for the first time in 2016, and has since then closed seven more locations, including one already this year in Japan. All of these locations were either massively outdated or out of alignment with the future of retail.
Assuming the company’s global store number will hover just above 500 for the foreseeable future, we should encourage Apple to apply razor-sharp focus to the strained support and service offered at existing locations rather than stretch already exhausted resources. Outside of stores, enhancements to the Apple Support app and improved software ease of use can reduce the support burden across the board.
A ballooning footprint results in neglect and deterioration. Pruning the branches helps every store thrive.