Gapping up
In reaction to earnings/guidance:
- MTG +4.2%, MTB +3.6%, EGBN +0.5%
M&A news:
- TA +9.1% (to acquire travel center properties from HPT and amend existing leases)
- CARS +7.7% (announces review of strategic alternatives in pursuit of enhancement of shareholder value)
- ADM +0.9% (to acquire Gleadell Agriculture Ltd and Dunns Ltd, combining existing UK origination entities to create ADM)
Other news:
- LPCN +68.6% (Lipocine's NASH Therapy Candidate Achieves Meaningful Liver Fat Reduction Based on Interim Results)
- ADMP +12.5% (Adamis Pharma's partner Sandoz launched SYMJEPI epinephrine to the U.S. market)
- PCG +6% (ongoing volatility; BlueMountain Capital delivers letter to the Board challenging their plans to file for Chapter 11)
- MRTX +3.2% (prices 1,612,903 shares of its common stock at a price to the public of $62.00 per share)
- MNKD +1.5% (announces direct purchase insulin program for Afrezza)
- SPPI +1% (to sell portfolio of seven FDA-approved hematology/oncology products to Acrotech Biopharma for $160 mln up-front cash payment and up to $140 mln in milestones)
Analyst comments:
- FOLD +3.1% (upgraded to Buy at Citigroup)
- CDXS +2.1% (upgraded to Outperform from Neutral at First Analysis Sec)
- ARRY +1.1% (initiated with a Outperform at Leerink Partners)
Early premarket gappersGapping up:
- ADMP +16.7%, TA +9.1%, CARS +7.7%, MTG +4.2%, MTG +4.2%, FOLD +3.5%, PCG +3.4%, MNKD +1.5%, KEY +1.2%, KEY +1.2%
Gapping down:
- FUL -10.1%, ACB -7.1%, SIG -4.2%, PLXS -3.4%, MS -3.2%, PPG -3.2%, UNFI -2.6%, CSX -2.6%, TSM -1.7%, KMI -1.5%, GCI -1.1%, AAPL -0.8%, WNS -0.5%
Vestager should stand against Siemens-Alstom merger
Competition from China is no excuse for weakening antitrust rules
Margrethe Vestager, EU competition commissioner, may be approaching the end of her term this year but she is not coasting. Ms Vestager is close to issuing a ruling on one of the most controversial proposed mergers of her time — the tie-up between Siemens of Germany and Alstom of France to create a “Railbus” European champion.
Ms Vestager looks ready to block the merger next month despite pressure from France and Germany to let their companies bulk up to take on Chinese competition. The controversy raises a broader issue — whether the EU should dilute its strict antitrust approach so domestic giants can flourish in global markets.
She should not waver despite political pressure from Berlin and Paris. Europe may have had difficulty matching the dominance of US technology companies, or the size of Chinese state-supported enterprises, but there are better ways to address this than bending competition rules. That would weaken its credibility without solving the underlying challenge.
Europe unquestionably faces Chinese competitors playing by different rules, and backed by intrusive government policy. One of the prime examples is CRRC, the Chinese railway group formed by a merger in 2015, which has double the revenues of a merged Siemens-Alstom. It is part of China’s push to dominate the global market for railways and rolling stock.
It is tempting for the EU to respond in kind, by allowing strategic mergers and using state aid to give its companies an advantage. “If we want to be able to face competition with Chinese giants, we have to gather the European forces,” Bruno Le Maire, French economy minister, told the FT last year. Siemens-Alstom has become a symbol of Europe’s effort to strike back.
Angela Merkel, Germany’s chancellor, has shown support for the merger and the BDI group of German companies called in a paper on Chinese competition for “the market-driven formation of European champions.” It softened this vague rallying cry by insisting that, “Europe must not jeopardise its credibility in international governance” by diluting openness.
It is hard to see how Ms Vestager could square such demands. Despite the politics, competition authorities from five countries, including Germany, have objected to the Siemens-Alstom deal as reducing competition in high-speed rail. Waving the deal through despite such evidence would be a blatant case of national interests outweighing competition law.
Rather than bending the rules internally, Europe should do more to shield itself from unfair competition. That could include extending restrictions on state aid to cover foreign companies bidding for European procurement contracts. China has been allowed to drag its feet on reciprocal access to its market for too long and should face tougher treatment.
There may also be a case for the EU antitrust policy more often to focus on Europe as a whole rather than national markets, although that would not help Siemens-Alstom. But its opinion cannot vary according to the nationality of the companies involved, even if it happens elsewhere. Even the suspicion would turn competition cases into international trade disputes.
The EU’s best hope of creating champions is to study the example of the US rather than China. It must deepen economic integration, invest in technology and help companies to operate across borders. That would be a salutary lesson to the UK as well as China about the benefits of the single market. Abandoning antitrust leadership would be defensive and hypocritical.
Geely eyes CNH and FCA assets - report (translated)
17 JAN 2019
Geely Automobile [HKG:0175] is interested in the commercial vehicle assets of CNH [BIT:CNHI], Italian-language daily Milano Finanza reported.
The report cited market rumours that Geely could also be interested in Alfa Romeo and Maserati, two of the luxury car brands belonging to Fiat Chrysler Automobiles [NYSE:FCAU, MTA:FCA], the parent of CNH.
The item added that it is unlikely Geely will make a bid for any of FCA's US assets given the present relations between the US and China.
The item said that Geely's interest at present is in its early stages.
The item noted that CNH has a market cap of EUR 11.77bn
Telecom Italia BoD may put brakes on Persidera sale today
The board of directors of Telecom Italia (TIM) [BIT:TIT] could put the brakes on the sale of its 70% stake in the multiplex TV broadcasting unit, Persidera, when it meets on Thursday (17 January), Italian-language daily Milano Finanza reported.
The unsourced report said that the board could either put a temporary stop or slow down the sale process.
Until November last year, Persdiera looked most likely to be sold to private equity firm I Squared Capital, which had offered EUR 240m for the asset.
However, with 30% owner GEDI [BIT:GEDI] backing the EUR 220m offer made by RAI Way [BIT:RWAY] for the infrastructure part of Persidera, the sale was put on a hold, the report noted.
GEDI has the first rights to acquire TIM's stake in Persidera, the report further stated.
Link to original source
The rally in risk assets faded on Thursday, with Asian stock indexes trading mixed and the yen recovering, as concerns about rising U.S.-China tensions offset signs of a better-than-expected start to the earnings season. The dollar and Treasuries steadied.
While shares rose in Japan, gains fizzled in Hong Kong and China, and U.S. and European futures declined. News of U.S. prosecutors investigating Huawei Technologies for allegedly stealing trade secrets weighed on sentiment despite strong profits at Goldman Sachs and Bank of America that buoyed the S&P 500 Index Wednesday. The pound was steady after Prime Minister Theresa May’s government won a no-confidence vote, as widely expected.
US After Hours FUL -10%, CSX / AA / KMI -2% following earnings/guidance, CARS +8% on strategic alternative review news
Nikkei -0.20% HAng Seng -0.40% CSI-0.55% Shanghai -0.42% Shenzen -0.94%
Eur# 1.1374 CNH 6.7795 CNY 6.7699 JPY 108.87 GBP 1.2856 CHF 0.9921 RUB 66.4302 TRY 5.3708 WTI 52.01 -0.57%
S&P -0.46% EuroSToxx -0.52% FTSE -0.41% Dax -0.49% SMI -0.35%
Macro :
- May Wins Confidence Vote and Opens Cross-Party Brexit Talks
- Industrials Face Further Downside With Increased Risk: Liberum
Keep an eye on :
- ABF LN : AB Foods Christmas Sales Exceeded Forecast, Outlook Unchanged
- AF FP : Air France-KLM to Cut 33 Jobs in Italy: Unions
- AIR FP : Airbus Sees North America as Largest Single Market for A220 Jet
- AIR FP : Airbus Sees Decision This Year on New Boost to A320 Output Rate
- ALO FP : Alstom 3Q Orders EU3.39B; Says Siemens Deal Approval Uncertain
- ANTO LN : Antofagasta Says William Hayes to Step Down as Director
- APPL US : Apple Is Said to Plan Hiring Reductions Amid IPhone Woes
- AZN LN : AstraZeneca Will Show Growth for 2018, CEO Tells Dagens Industri
- BARC LN : Barclays Hires GS’s Titus for Finl Institutions Group in Canada
- BBVA SM : BBVA Seeks Gonzalez’s Resignation From Honorary Post: Economista
- BEI GY : Beiersdorf Full Year Sales Meet Estimates
- CGG FP : CGG: Sercel, Apave in Partnership for Structural Health
- CHG LN : Chemring Group Full Year Adjusted Operating Profit GBP31.0 Mln
- CHR DC : Chr. Hansen First Quarter Adjusted Ebit Below Estimates
- COV FP : Covivio Sells EU482M Non Strategic Assets
- DEQ GY : Deutsche Euroshop Reports Prelim. 2018 Pre-Tax Loss About EU61m
- DSV DC : DSV Won’t Speculate on Panalpina Counter-Bid, CEO Tells FuW
- EXPN LN : Experian Third Quarter Organic Revenue At Constant FX +9%
- ENEL IM : Enel Sells Solar Plants, Wind Park in Brazil for EU700m
- FOUR LN : 4imprint Full Year Revenue Beats Highest Estimate
- GEBN SW : Geberit Full Year Sales Meet Estimates
- GMD LN : Game Digital Says Comparable Sales Rose 2% in Christmas Period
- GVC LN : GVC Fourth Quarter Net Gaming Revenue +5%
- HOC LN : Hochschild Will Likely Put Arcata Into Care and Maintenance: UBS
- IPN FP : Ipsen Presents Study on New Fast-Acting Recombinant Neurotoxin
- LLBN SW : Liechtensteinische LB 2018 Net New Money Inflow CHF1.3b
- B4B GY : Metro Has Fastest Growth in Six Quarters on Eastern Europe, Asia
- MOWI NO : Mowi Fourth Quarter Ebit 4.7% Below Estimates (1)
- NANO FP : Nanobiotix to Offer ADR
- COX FP : Nicox Says Cash Position Shrank to EU22M at End of December
- BWNG LN : N Brown Revises Full Year Net Debt Forecast
- NAS NO : Norwegian Shuts Bases, Cuts Routes to Trim Costs and Pare Losses
- NFLX US : Netflix Options Show 50% Rally From December Lows May Continue
- NOKIA FH : Huawei, ZTE Would Be Denied U.S. Parts Under Bipartisan Bill
- NOVN SE : Novartis Rebuffed in PTAB Challenges to Daiichi Cancer Patents
- PFD LN : Premier Foods Third Quarter Sales -2.2%
- RNO FP : France’s Le Maire: It’s Time for Renault to Replace Ghosn
- RNO FP : France Abandons Ghosn, All But Ensuring Renault CEO’s Ouster
- SGE LN : Sage First Quarter Organic Revenue +7.6%
- SAN FP : Diabetes Pill Seen With Chance of a Coin Flip Ahead of FDA Panel
- SBO AV : Schoeller-Bleckmann Full Year Sales 1.6% Below Estimates
- SNBN SW : SNB’s Jordan Sees Risk in Changing Monetary Policy: Aargauer
- GLE FP : SocGen 4Q Hit by Global Capital Markets, IFRS 5 Accounting
- UCB BB : Amgen and UCB’s Bone Drug Evenity Wins Broad FDA Panel Backing
- VOE AV : Voestalpine AG Prelim 9-Month Figures Below Market Expectations, Voestalpine Cuts Profit Outlook for Second Time in Three Months
- VOLVB SS : Fredrik Lundberg Bought 880,000 Volvo Shares in 4Q: Direkt
- WTB LN : Whitbread Third Quarter U.K. Comp Sales -0.6%
- WKP LN : Workspace Third Quarter Average Lettings Per Month 98
- XPD LN : Xpediator in Talks With Intereuropa’s Holders on Sales Process