Gapping up
In reaction to strong earnings/guidance:
- ARAY +10.8%, SYF +9.4% (also announces extension of strategic partnership with Wal-Mart's (WMT) Sam's Club) EHTH +8.3%, NAVI +7.8%, IBM +7%, CNMD +4.9%, UTX +4.1%, CMCSA +3.3%, PG +3.3%, AMTD +2.6%, TRST +1.9%, FMBI +1.6%, KMB +1.5%, ZION +1.4%, WAT +1.4%
Other news:
- LABL +4.4% (attributed to reports that the company hired advisor to consider sale)
- VIAB +0.1% (confirms plans to acquire Pluto TV, the free streaming television service in U.S., for $340 million in cash)
- ATHX +20.1% (announces summary results from its exploratory clinical study of the intravenous administration of MultiStem cell therapy to treat patients who are suffering from acute respiratory distress syndrome)
- RIGL +13.9% (Rigel Pharma enters into an exclusive license and supply agreement with Grifols)
- NTLA +4.5% (after being down 7% yesterday day)
- AMRN +3.9% (announces acceptance of presentation of new data showing the reduction in total major adverse cardiovascular events shown in the landmark REDUCE-IT cardiovascular outcomes trial as late breaking clinical trial data at the American College of Cardiology's 68th Annual Scientific Session)
- OSTK +1.4% (closed more than 6% lower on the day)
- CEO +0.7% (provides business strategy and development plan for 2019)
Analyst comments:
- TEVA +2.7% (upgraded to Buy from Neutral at UBS)
- LW +1.3% (upgraded to Buy from Hold at Stifel)
- LLY +1.2% (initiated with a Buy at UBS)
- WMT +1.1% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
- WY +0.8% (initiated with a Buy at Seaport Global Securities)
Early premarket gappersGapping up:
- ARAY +11.3%, LABL +10%, SYF +9.2%, EHTH +8.3%, NAVI +7.8%, IBM +6.8%, CNMD +4.9%, NTLA +4.5%, AMTD +2.1%, TRST +1.9%, FMBI +1.6%, ZION +1.4%, CMCSA +1.3%, VIAB +0.9%, OSTK +0.7%
Gapping down:
- TSE -12.3%, PTCT -9.4%, APHA -5.4%, COF -5.3%, AVCO -5.2%, CWST -5.1%, TIGO -4.3%, CPLP -2.7%, QUOT -2.6%, QCOM -2.4%, IBKR -1.1%, URGN -1%, ASML -0.8%, CMA -0.7%
‘Influencers’ must disclose paid endorsements, says UK watchdog
Celebrities told to make clear any rewards for online posting
The UK’s consumer protection and competition watchdog has told several celebrity “influencers” they must make sure to tell their followers clearly if they have been paid to endorse products in their social media feeds.
Influencers are bloggers, vloggers and social media personalities whose millions of fans follow them to see where they go on holiday, what they wear and which products they use.
In August, the UK’s Competition and Markets Authority opened an investigation to see if influencers were clearly disclosing when they had been paid or rewarded for endorsements and promotions, rather than acting as ordinary consumers with no financial interest in the products and services they were using.
The singers Ellie Goulding and Rita Ora, fashion models Alexa Chung and Rosie Huntington-Whiteley, and the actress Michelle Keegan are among the 16 celebrities who have given formal commitments to the CMA. Others named by the regulator include the TV reality stars Millie Mackintosh and Megan McKenna, and Zoe Sugg, better known by her YouTube moniker Zoella.
The CMA said all the influencers had co-operated with their investigating and volunteered to change the way they presented their association with products. The watchdog added it had “not made a finding on whether the influencers’ practices have breached consumer law”.
Andrea Coscelli, the watchdog’s chief executive, said: “Influencers can have a huge impact on what their fans decide to buy. People could, quite rightly, feel misled if what they thought was a recommendation from someone they admired turns out to be a marketing ploy.
“You should be able to tell as soon as you look at a post if there is some form of payment or reward involved, so you can decide whether something is really worth spending your hard-earned money on.”
Mr Coscelli said the influencers had pledged to “be more transparent when posting online”, adding that the enforcement action sent a “clear message” to other influencers and businesses to be “open and clear with their followers”.
Warning letters have been sent to a number of other celebrities urging them to review their practices “where some concerns have been identified”, the CMA stated.
In September last year, the CMA and the Advertising Standards Authority issued joint guidance on social media advertising, stating it was against consumer protection law for “editorial content in the media to promote a product where a trader has paid for the promotion without making that clear”.
In that guidance, the CMA said it expected influencers to disclose when they had received “any form of monetary payment, a loan of a product or service, any incentive and/or commission or have been given the product they’re posting about for free”.
The consumer protection body said on Wednesday it would further investigate “the role and responsibilities of social media platforms”.
Tikehau hires Peter Westmacott as president to advisory board
French asset manager adds ex-diplomat and former Sony chief to board as it explores Asia deals
Tikehau Capital has hired Peter Westmacott, a former British ambassador to the US, France and Turkey, to be president of its advisory board as the French asset manager seeks new deals in Europe and Asia.
The Paris-based company, which has roughly doubled assets under management since listing in 2017 from €10bn to €20bn, has also hired new members to the board.
Some of these members include Nobuyuki Idei, former chairman and chief executive of Sony Corporation, and François Pauly, chairman of Compagnie Financière La Luxembourgeoise.
“We want our network to be gatekeepers or firewalls to filter our local connections,” said a person with direct involvement of the new hires.
It comes as Tikehau is exploring opening offices in Germany and Japan, people with direct knowledge of its plans said.
An announcement of Sir Peter’s appointment is expected later on Wednesday. Sir Peter, who is also an independent non-executive director of EY among other advisory roles, said Brexit will play a key part in the dynamics of sourcing deals for private equity groups.
He said London remained an important hub when it came to private equity activity but that in “a post-Brexit world things will change. Some value has gone (out of the UK). It does mean that France, which has its doors wide open to investment, will pick up new business.”
He added private equity has become less of a “fringe area of the capitalist system”. People no longer thought of the industry as executives “making lots of money while others were missing out, or as predators flipping firms after a few years”, he said. “People see private equity has the ability to take the longer term view.”
Tikehau has a tradition of hiring top financiers and more recently political figures, including François Fillon, the former French presidential candidate whose campaign was mired in scandal.
The asset manager was founded in 2004 with €4bn of assets under management by Mathieu Chabran and Antoine Flamarion, two former bankers.
The company was mostly focused on private debt but it has increasingly diversified its investments into real estate and private equity as pension funds increase their allocation to these asset classes.
Telecom Italia could eye merger with Open Fiber among options
[The fourth paragraph has been amended to reflect the valuation of Telecom Italia's landline network.]
Telecom Italia, based in Milan, Italy, could look into options for its landline network as Chief Executive Officer Luigi Gubitosi readies a strategy for the company, according to a newswire report.
Bloomberg cited people familiar with the matter as saying that Gubitosi is seeking to hire advisers regarding a possible merger with Open Fiber.
Recently, the communications regulator in Italy turned down a proposal to separate the network legally, Bloomberg reported.
Open Fiber is a Enel SpA-Cassa Depositi e Prestiti joint venture, and is a competitor for Telecom Italia, the report said, adding that Telecom Italia's landline network was valued at nearly EUR 15bn by analysts.
Elliott Management Corp and Vivendi SA are among Telecom Italia's investors, the article said.
VTB may repurchase FC Dynamo Moscow for symbolic amount
VTB Bank [MCX: VTBR], the Russian state-controlled lender, may repurchase FC Dynamo Moscow football club for a symbolic amount, Russian newswire Interfax reported on 22 January quoting VTB CEO Andrey Kostin.
VTB - the general sponsor of FC Dynamo, is thinking about taking responsibility for the development of the club, Kostin was quoted as saying. VTB is in contact with the management of Dynamo on the subject, Kostin told Interfax.
VTB was the main shareholder in the football club, but in late 2016, it sold its 74% stake to All Russian Fitness-Sports Society Dynamo(VFSO Dynamo) for a symbolic RUB 1 (one ruble), while remaining as the club sponsor, the report noted.
FC Dynamo’s debt owed to VTB was previously reported to be in excess of RUB 5bn (USD 75.3m), and the total debts of the football club were estimated at around RUB 11bn (USD 165.6m).
Asian stocks traded mixed Wednesday as traders juggled continuing doubts about the prospects for progress on trade with signs of China stimulus and moves to end the U.S. government shutdown. The yen slid as the Bank of Japan cut its inflation outlook.
Shares slipped in Japan, rose in Korea and fluctuated in Hong Kong and China. U.S. futures posted modest gains following Tuesday’s decline in all major benchmarks led by a slide in technology shares. White House adviser Lawrence Kudlow said that negotiations scheduled for next week will be “very, very important” and “determinative.” Meantime, the Senate scheduled a vote for Thursday on Democratic-backed legislation to reopen the government, the first sign of a possible way out of the shutdown. China’s central bank pumped liquidity into the banking system through a new tool.
US After Hours EHTH +8%, NAVI +7%, IBM +6%, CNMD +5%, COF -4% following earnings/guidance
Nikkei -0.14% Hang Seng +0.04% CSI -0.07% Shanghai +0.05% shenzen +0.13%
Eur$ 1.1367 CNH 6.7920 CNY 6.7859 JPY 109.66 GBP 1.2965 CHF 0.9977 RUB 66.3917 TRY 5.3402 WTI$ 53.23 +0.42%
S&P -0.29% FTSE -0.35% DAX -0.32% SMI -0.42%
Macro :
- EQT Touts 5% Headcount Cut in Rebuke to D.E. Shaw, Rice Brothers
- Activist Threat Seen Pushing Mega-Cap Laggards Into Spinoff Mode
Keep an eye on :
- AH NA : Ahold Delhaize Fourth Quarter Net Sales Meet Estimates
- AJAX NA : Barcelona Prepared to Pay EU90m for Ajax’s De Jong: Telegraaf
- ALO FP : GE Plans 460 Job Cuts in Energy Business in France: Liberation
- ARNC US : Arconic-Apollo Deal Fell Apart Over Pension Obligations: FT
- ANTO LN : Antofagasta Sees FY Gold Production 240,000 To 260,000 Oz
- MT NA : Arcelor Says Followed Process From the Start on Essar Steel
- ASML NA : ASML 1Q Net Sales Forecast Misses Lowest Est., Cites Fire
- ASML NA : Nikon, ASML and Carl Zeiss Settle Legal Proceedings
- AUTN SW : Autoneum Full Year Sales Meet Estimates
- BARN SE : Global Chocolate Sales Rose 1.4% in Aug.-Oct., Barry Says
- BARN SE : Barry Callebaut First Quarter Sales 2.1% Below Estimates
- BMW GY : S. Korea Says BMW Korea to Recall Additional Vehicles
- BNP FP : BNP Paribas, IBM Services Sign Accord on Cloud Strategy
- BRBY LN : Burberry Third Quarter Comparable Sales Miss Estimates
- CRG IM : Carige Says Has Received State Decree With Guarantee for Bonds
- CA FP : Carrefour 4Q France Hypermkt Lfl Sales Growth -2.2%; Est. -2.4, Carrefour Holds Up in France in 4Q Despite Protests: Jefferies
- CA FP : Carrefour Proposes Naming Claudia Almeida E Silva to Board
- CAST SS : Castellum Full Year Dividend Per Share Beats Highest Estimate
- DBK GY : Fed Is Said to Probe Deutsche Bank Over Suspicious Danske Cash
- DB1 GY : Deutsche Börse Expects 2018 Profit Growth to Exceed its Guidance
- DPW GY : DHL to Close E-Commerce Business in Chile: Diario Financiero
- FCT IM : Italy-France Dispute May Hit Alitalia, Fincantieri: Repubblica
- FRES LN : Fresnillo Sees Full Year Gold Production 910,000 To 930,000 Oz
- G4S LN : G4S Expects to Settle California Class Action for $100m to $130m
- GLJ GY : Grenke Growth Story Fully Intact, Stock is Cheap, Lampe Says
- ING FP : Ingenico Sees FY Ebitda at EU485M vs EU510M Expected, Ingenico Profit Guidance Miss Caps ‘Tumultuous Year,’ Citi Says
- ING FP : Ingenico CEO: There Was Under-Performance in “Mature” Markets --> NCR -4%
- JDW LN : Petropavlovsk Sees FY Gold Production 450,000 To 500,000 Oz
- LABL US : Label-Maker Multi-Color Is Said to Work With Advisers on Sale
- MDM FP : Maisons Du Monde Confirms FY Ebitda Target, Says Sales Rise 10%
- ML FP : Michelin: Michelin acquires leading Indonesian tire manufacturer PT Multistrada Arah Sarana TBK
- KN FP : Natixis Appoints Stephane Honig Head of Strategy
- NEO FP : Neopost Sets Dividend Payout at Minimum 20% of Net Income
- NDA SS : Nordea Vice Chairman Welcomes That Cevian Has Bought Stake: DI
- NYR BB : Nyrstar Reports ‘Cyber-Attack,’ Working on Recovery Plan
- POG LN : Petropavlovsk Sees FY Gold Production 450,000 To 500,000 Oz
- RNO FP : Ghosn Indicates He’ll Step Down From Top Renault Post: NHK (1)
- RNO FP : France’s Le Maire Says Michelin Chief Would Be Good for Renault
- RPC LN : Apollo to Buy RPC for 782p/Shr, Valuing Co. at GBP3.32B
- SPM IM : Saipem Says CEO, Some Managers Under Investigation
- SPM IM : Saipem Revenue Visibility Best Among Peers, Up to Buy: Citi
- SIKA SE : Sika Starts Offering of as Much as CHF1.3b Convertible Notes
- TEF SM : Telefonica Says Likely to Be Refunded for 2008-2011 Taxes
- TIT IM : T Telecom Italia CEO Is Said to Revive Potential Open Fiber Deal
- TEF SM : Telefonica in Talks to Quit Central America in Debt-Cutting Push
- TIGO SS : Liberty Latin America Terminates Talks With Millicom (1)
- TSS US : The Fly: TSYS a 'logical target' for FIS after Fiserv's transaction, Dealreporter says
- UNI IM : Unipol CEO Rules Out Paschi Merger With BPER or Unipol: CNBC
- UNI SM : Unicaja Sold Non-Performing Assets Portfolios: Confidencial
- VOD LN : Vodafone Follows Rival BT in Consolidating U.K. Offices