>>> Could $200 bln in tariffs on U.S. imports from China go into effect this wee

Could $200 bln in tariffs on U.S. imports from China go into effect this week? Short Answer: Start date for tariffs could be announced
  • There has been some speculation on cable news that the tariffs could go into effect this week. The comment period for the 25% $200 bln tariff tranche on U.S. imports from China expired on September 6. Tariffs can go into effect any day. Based on prior China tariff tranches (albeit there has only been two of them), the administration typically announces a start date about a week after the comment period ends. For comparison purposes, the $34 bln tariff tranche comment period ended on May 22. By May 29, the Administration announced a start date for tariffs which was June 15 (later it was delayed until July 6 when the tariffs actually went to effect). The review period for the $16 billion tariff tranche ended on July 31. By August 7th, the Administration announced that the tariffs would go into effect on August 23.
    • Products included in the $200 bln tariff tranche include: food ingredients, auto parts, art, chemicals, paper products, apparel, handbags & electronics. Look for weakness in technology and China ADR's upon initiation of these tariffs. Tariffs may also be negative for the following stocks: AAPL, DWDP, KSS, WMT, TGT, NKE, SKX, KS, CLW, KHC, MGA, LEA, F, AAP, XRT, M, JWN, BBY, BID .. etc.
    • President Trump tweeted over the weekend that Apple (AAPL) products may get more expensive after tariffs but the solution is to make products in the U.S. This is nothing too new, as the list of $200 bln in tariffs always included electronics, as noted above.
  • China has vowed to respond with $60 bln in tariffs on U.S. exports to China. Products include: medium sized aircraft, metals, tires, golf clubs, crude oil, and liquified natural gas. These tariffs will begin upon U.S. initiation of its tariffs and should be negative for the following stocks: NUE, X, AA, KALU, DWDP, BA, UTX, EADSY, KLXI, RTN, GT, ELY, LNG, GLNG, GLOG, TELL, EOG, OXY, XOM, CVX, COP.
  • Finally, President Trump has warned China that if they do respond to the $200 bln tariff tranche, the Administration will put tariffs on an additional $200 bln in tariffs which will cover basically all U.S. imports from China. There would need to be a comment period before these tariffs could go into effect which typically last 3-4 months.
  • Once China puts $60 billion in tariffs on, it would cover nearly all the U.S. exports to China. There are other ways the country can respond such as disrupt operations of U.S. companies that do business in China by withholding licenses or launching monopoly investigations.

9to5 : Kuo: iPad Pro switching to USB-C, cheaper MacBook with Touch ID, Apple Wa

https://9to5mac.com/2018/09/10/kuo-iphone-6-1-ipad-pro-usb-c-macbook-touch-id-apple-watch-ecg/


Kuo: iPad Pro switching to USB-C, cheaper MacBook with Touch ID, Apple Watch gaining ECG, more

We’re just a couple days away from Apple’s big September 12th event on Wednesday, and reliable supply chain analyst Ming-Chi Kuo has published his latest predictions. Included are several new details regarding the mid-sized iPhone “Xr”, new iPads and USB-C, the cheaper MacBook and Touch ID, the Apple Watch Series 4 and ECG, and more. Here’s what Kuo is now predicting from Apple:

* 6.1-inch iPhone still launching in “late Sep-early Oct due to quality issues of assembly and display” — that’s the rumored iPhone “Xr” which Bloomberg says will launch in limited supply
* iPad Pro will feature Face ID and switch from the Lightning port to USB-C for the first time —that’s a new detail — and ship with the new 18W USB-C charger we’ve seen floating around … iPhone will retain 5W charging and Lightning ports
* Rumored low-price MacBook may replace 12-inch MacBook in the lineup — and even feature Touch ID without the Touch Bar
* Apple Watch with slimmer bezels will support electrocardiography (ECG) and use ceramic backs on all models — aluminum currently uses composite glass
Kuo’s graphic for the research note also includes AirPods 2 and the AirPower charging mat, although it’s unclear if Kuo predicts new AirPods with the “Hey Siri” feature as rumored or just the new charging case that works with AirPower.

While Kuo’s memo mentions both the new iPad Pro with USB-C (wow) and MacBook with Touch ID, it’s still unclear at this point if we’ll see the iPad and Mac on stage at Wednesday’s event, or if the September 12 date will be dedicated to iPhone and Apple Watch.

We expect Apple to unveil three new iPhones — an updated 5.8-inch OLED model called iPhone Xs, a 6.1-inch LCD model possibly called iPhone Xr, and an even larger 6.5-inch OLED model likely called iPhone Xs Max — with OLED models offered in a new gold finish and LCD models offered in a variety of other colors. 9to5Mac exclusively shared the first look at the new gold color and larger version.

Apple Watch Series 4 — which 9to5Mac also exclusively shared the first look at — will feature a much larger display in a likely similar size casing. This larger screen will accommodate more information dense watch faces like the one seen in the leaked marketing image.

>>> H&M : Christer Gardell, owner of the activist fund Cevian Capital, has a pic


Christer Gardell, owner of the activist fund Cevian Capital, has a picture of what is the problem of clothes.

...Is H & M heading away from the stock market?

"It is based on Stefan Persson having to buy out the shares from existing shareholders. It is a long process and an expensive process that will ultimately require a bid. I have no idea if they have that money, "said Christer Gardell.


...

I don't have access to the full article

FT : French environment minister raises prospect of EDF shake-up

French environment minister raises prospect of EDF shake-up

France’s new environment minister has said that EDF must prove the viability of its next generation nuclear reactor before the question of new plants can be considered and re-raised the prospect of a change in the structure of the state-controlled energy giant.

“EDF should demonstrate that the EPR [European Pressurised Reactor, a next generation nuclear reactor] works, which is not the case yet. Nobody is able to guarantee a date for its connection to the grid. It also has to demonstrate that the EPR is competitive in terms of costs,” François de Rugy told French daily Le Monde.

However, Mr de Rugy, who is seen as more pragmatic than his predecessor, added that “we must get out of the religious war about nuclear energy” and “the important thing is to know the economic data in the nuclear field and in the field of renewable energies.”

The comments come as Mr de Rugy takes the reins of France’s environmental policy.

Last week French president Emmanuel Macron appointed Mr de Rugy as his new environment minister as part of a minor government reshuffle triggered by the surprise departure of Nicolas Hulot, the former television personality and longtime environmental campaigner replaced by Mr de Rugy.

France is preparing to unveil a multi-year energy programme this autumn, which will include details on the speed at which the country should pursue a government target to cut nuclear’s share of domestic electricity production to 50 per cent.

The question of whether new reactors will eventually be commissioned is of particular importance to nuclear-focused EDF.

Earlier this summer Jean-Bernard Lévy, EDF’s chief executive, told French lawmakers that future French EPRs built in a series, as opposed to the one-off prototype at Flamanville, could produce electricity at a cost of €60-€70 per megawatt per hour. That would be comparable with the £57.50/MWh price in the latest UK offshore wind contracts.

While an EPR in China has now been connected to the grid, the company’s flagship Flamanville plant in France, seen as a crucial marker for the technology, is seven years late and €7bn over budget. In July, EDF said the loading of nuclear fuel at Flammanville “is now scheduled for the fourth quarter in 2019 and the target construction costs have been revised from €10.5bn to €10.9bn.”

Mr de Rugy also refused to rule out changes to the “architecture” of EDF: “I have some ideas on the subject…I am not in favour of change on principle, but I think that the status quo is not in the interest of the state and the company. You really have to look at everything, not just the subject of the energy transition, but also the debt of the company, and that can indeed inspire changes.”

Ex-minister Nicolas Hulot had told the Financial Times last year that EDF needed to embrace a transition towards environmentally friendly energy rather than “resist” it. He added that this might require revisiting the structure of the company - analysts suggested EDF’s nuclear activities and riskier debt could be separated from its renewable, retail and network assets.

“The question of EDF’s structure is back on the table, and rightly so in our view. EDF is one of the largest utilities in the world with an Enterprise Value heading towards €150 billion and a wide range of business lines in different countries and with different risk profiles,” said Sam Arie at UBS.

“We certainly believe there could be value in a NewCo/OldCo separation – perhaps similar to the RWE/Innogy split in 2016, but potentially much larger and more significant,” added Mr Arie.

Reuters - Saudi fund picks Goldman to advise on SABIC sale: sources

DUBAI (Reuters) - Saudi Arabia’s sovereign wealth fund has selected Goldman Sachs (GS.N) to advise it on the sale of its stake in petrochemicals firm SABIC to Saudi Aramco, two sources familiar with the process told Reuters on Monday.

The headquarters of Saudi Basic Industries Corp (SABIC) is seen in Riyadh, Saudi Arabia April 19, 2016. REUTERS/Faisal Al Nasser
Citigroup Inc (C.N), which along with Goldman declined to comment, has won the mandate to advise Saudi Basic Industries Corp (SABIC) 2010.SE on the deal, the sources said.
RELATED COVERAGE

  • BAML, Michael Klein win roles advising PIF on SABIC sale: source
State-owned oil company Aramco plans to buy a controlling stake in SABIC, possibly taking the Public Investment Fund’s (PIF) entire 70 percent holding.
The deal mandate is a major win for Goldman Sachs, which like other Western investment banks has built up its Saudi business to capitalize on the government’s plans to privatize assets and diversify the oil-dominated economy.
Investment banking fees in Saudi Arabia are modest compared to elsewhere, while risks are high, making the SABIC deal an especially coveted prize. Riyadh recently shelved plans to float Aramco and has postponed an airport privatization on which Goldman was advising.

Goldman began operating in Riyadh in 2009 and obtained new licenses in 2014 and 2017 that have allowed it to expand. It bought a portion of Aramco’s $10 billion credit facility last year in an attempt to secure a role in the IPO.
Citigroup has also sought to rebuild its presence in Saudi Arabia after an absence of almost 13 years. In January, it won approval to begin investment banking operations there.
If Aramco acquires the full SABIC stake, valued at around $70 billion, it will be the kingdom’s biggest M&A deal and provide a boost to the oil major’s downstream business. Reuters has previously reported that JPMorgan and Morgan Stanley are advising Aramco on the deal.

SABIC has recently boosted its own holdings, buying a 25 percent stake in Swiss specialty chemical maker Clariant in January. That deal initially faced regulatory delays, but has now been cleared to proceed.
The deal will also provide an alternative source of cash to the PIF, after an initial public offering of Aramco that was supposed to raise $100 billion was shelved.
Analysts estimate the PIF has around $250 billion worth of assets under management. It said last year that it aims to increase its financial clout to around $400 billion.
Goldman Sachs Group Inc233.91
GS.NNEW YORK STOCK EXCHANGE
--(--%)
  • GS.N
  • C.N
It already owns stakes in many companies across the kingdom and plans to beef up its overseas expansion, including pledges of $20 billion to a fund with U.S. private equity firm Blackstone and $45 billion to SoftBank’s Vision Fund.
Proceeds from the sale of Riyadh-listed SABIC, the world’s fourth largest petrochemicals company, are likely to help fund planned investments at home and abroad.
The PIF and SABIC were not available for immediate comment.

>>>DEB LN - Response to media speculation: Guides FY18 Pretax £33M v £31-36.5M f

DEB LN - Response to media speculation: Guides FY18 Pretax £33M v £31-36.5M forecast, EBITDA £157M; Early trends of new season positive

Consistent with our focus on managing cost and cash generation, we anticipate year end net debt will be approximately £320m, in line with guidance and retaining significant headroom on our £520m medium term facilities. We have continued to strengthen our financial position, including increasing headroom on our fixed charge covenant as announced on 1 August 2018, in order to give us comfortable liquidity through the peak borrowing period, ensuring maximum flexibility amidst volatile market trading conditions. The early weeks of the new season have shown more positive trends and any sustained upturn would result in a rebound in our profit performance.We continue to focus on our priority actions to mitigate current market conditions and drive progress in FY2019 and shareholders will have an opportunity to see the Debenhams Redesigned strategy in action at our new Watford store on 24 September 2018.

CEO: "The market environment remains challenging and underlying trends deteriorated through the summer months. Nevertheless the product and format improvements we have tested are gaining traction and we are ready to scale up some of our strategic activity ahead of peak. Having put in place a leaner operational structure and strong leadership team, and taken action to strengthen our financial position, we are well equipped to navigate these market conditions and take advantage of any trading opportunities that emerge."

>>> US Gapping up


Gapping up
In reaction to strong earnings/guidance:

  • N/A.

Other news:

  • TSLA +2.8% (provided a company update in which Elon Musk detailed a handful of additional management changes, said 'we are about to have the most amazing quarter in our history')
  • TTM +1.9% (global wholesales in August 2018, including Jaguar Land Rover, were at 1,07,030 nos., higher by 14% YoY)
  • BOX +1.8% (positive Barrons article)
  • AMD +1.3% (minor rebound following last week's decline)
  • MAXR +1.1% (Maxar Technologies' MDA signed two multi-million dollar contracts with Airbus)

Analyst comments:

  • RH +2.6% (upgraded to Overweight from Sector Weight at KeyBanc Capital Mkts)
  • AKAM +1.5% (upgraded to Buy from Neutral at DA Davidson)
  • CVE +1.4% (upgraded to Overweight from Neutral at JP Morgan; Added to Analyst Focus List)
  • SSNC +1.2% (upgraded to Buy from Hold at Deutsche Bank)
  • NVS +1.1% (upgraded to Buy at BofA/Merrill)

>>> US Early premarket gappers


Early premarket gappers

Gapping up:

  • RH +3%, FRAN +2.6%, ASML +2.5%, TTM +1.9%, RELX +1.8%, BOX +1.7%, NOK +1.7%, AMD +1.6%, TDOC +1.5%, WPP +1.3%, BBVA +1.2%, QD +1.1%, VOD +1.1%, AMAT +1%, AZN +1%, MU +0.9%, CS +0.9%, EQNR +0.9%, BCS +0.9%

Gapping down:

  • COOL -3.2%, SNAP -1.8%, GFI -1.7%, GOLD -1.2%, TSM -1.2%, STZ -0.9%, SBGL -0.8%, RDS.A -0.6%, SOHU -0.5%