>>> Board says Renault internal audit finds that former CEO Ghosn's compensation

Board says Renault internal audit finds that former CEO Ghosn's compensation complied with the law
- Renault lawyers are continuing to review Nissan's findings about Ghosn
- Board to maintain the interim governance changes introduced after Ghosn's arrest in Japan

As part of the agenda, Claude Baland, Senior Advisor in charge of Ethics and Compliance, and Eric Le Grand Chief Ethics and Compliance Officer, presented to the Board of Directors of Groupe Renault the current status of the review concerning the compensation of the Chairman and Chief Executive Officer of Renault for the years 2015-2018 which was undertaken on November 23, 2018. Their preliminary conclusion is that the compensation of the Chairman and Chief Executive Officer of Renault and the conditions under which such compensation was approved were in compliance with applicable law as well as the recommendations of the AFEP-MEDEF.

In addition, Renault's lawyers provided the Board of Directors of Renault with a report on the presentation made to them by Nissan's lawyers concerning the investigation they carried out at Nissan.

The Board of Directors requested that Renault's lawyers continue their review and assessment of the information provided, in liaison with Nissan's lawyers, and promptly provide the Board with a new update on the situation.

Furthermore, the Board of Directors noted that, at this stage, it does not have information concerning Carlos Ghosn's defence.

Based on these elements, the Board of Directors decided to maintain the current governance measures established on November 20, 2018.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • TLRD -26.3%, LLNW -23.7%, OXM -12.7%

Other news:

  • AGTC -39.8% (Applied Genetic Technologies (halted) announces topline interim six-month data from Phase 1/2 X-Linked Retinoschisis clinical study did not demonstrate signs of clinical activity; termination of Biogen (BIIB) collaboration)
  • VBIV -13.3% (proposed public offering of common shares; size not disclosed)
  • TOCA -5.6% (prices offering of 3 mln shares of common stock at $10.00 per share)
  • MRNS -5.5% (prices offering of 12 mln shares of common stock at $3.75 per share)
  • HASI -3.9% (prices 5 mln shares of common stock), DB -1% (after making notable move higher on reports that Germany's government is discussing potential plans to facilitate a merger between co and Commerzbank)

Analyst comments:

  • NBR -3.5% (downgraded to Mkt Perform at Raymond James)
  • FIVN -2.5% (downgraded to Neutral from Overweight at JP Morgan)
  • INTU -2% (downgraded to Underweight from Neutral at JP Morgan)
  • MDSO -1.9% (downgraded to Underweight from Neutral at JP Morgan)
  • ADSK -1.2% (downgraded to Neutral from Overweight at JP Morgan)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance:

  • QD +20.2%, CIEN +7.3%, FTI +1.1%, NDSN +0.8%

M&A news:

  • BLL +19.9% (agrees to sell Chinese beverage can and end manufacturing facilities for approximately $225 million)

Other news:

  • NBEV +11.5% (continued strength)
  • UXIN +5.8% (following 20%+ move higher boosted by Taobao update and general strength in China names)
  • AFL +4.4% (confirms that it is engaged in discussions with Japan Post regarding a potential minority investment in Aflac through open market purchases)
  • YRIV +1.9% (provides details regarding Hindenburg's research report)
  • ACB +1.5% (to invest CAD$10 mln in High Tide by way of brokered private placement)
  • KTOS +1.4% (Kratos Defense and Security and Space Vector team receive $424 million multi-award contract for U.S. Air Force Sounding Rocket Program-4 )
  • BYD +1.2% (light volume; authorizes new $100 mln share repurchase authorization)
  • INCY +0.9% (Eli Lilly and Incyte announce that the FDA has granted Fast Track designation to baricitinib for the treatment of systemic lupus erythematosus) .

Analyst comments:

  • GE +10.6% (upgraded to Neutral from Underweight at JP Morgan (long time bear on the name)
  • IMMY +5.2% (initiated with a Buy at B. Riley FBR)
  • ADC +2.8% (upgraded to Buy from Hold at Jefferies)
  • FIVE +2.6% (upgraded to Buy from Neutral at Goldman)
  • MRVL +2.1% (upgraded to Buy from Neutral at Citigroup)
  • NKTR +1.7% (initiated with a Buy at Goldman)
  • PG +0.9% (upgraded to Buy from Neutral at BofA/Merrill)

>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • BLL +19.9%, QD +16.3%, NBEV +10.3%, GE +9.5%, UXIN +5%, AFL +4%, FTI +2.8%, YRIV +1.9%, BYD +1.2%, NDSN +0.8%, NVS +0.7%, MDCO +0.6%

Gapping down:

  • AGTC -38.7%, TLRD -27.2%, LLNW -23.7%, OXM -11.1%, VBIV -9.6%, MRNS -7.1%, TOCA -6.9%, HASI -3.5%, HBM -0.8%