>>> Berkshire Hathaway legend Warren Buffet appears on CNBC on his 88th birthday

Berkshire Hathaway legend Warren Buffet appears on CNBC on his 88th birthday
  • Warren Buffet says he is still buying stocks.
  • He recently bought more Apple (AAPL); iPhone utility is underpriced. Mr. Buffet said he uses an iPad to check on markets.
  • He hit a ceiling with airline positions in terms of the 10% stake in AAL, DAL, LUV, UAL
  • When asked if Berkshire was interested in Campbell (CPB), he said he doesn't know CPB well and isn't interested; it is hard to pay a premium for consumer staples stocks and still get a good return on the deal (XLP)
  • Tariffs are stating to increase raw material costs for Berkshire companies
  • Buffet likes quarterly reporting but isn't a fan of forward-looking earnings guidance that is 'gamed

WSJ : Volkswagen Earnings to Be Hit by Delays in Meeting New Emissions Rules

Volkswagen Earnings to Be Hit by Delays in Meeting New Emissions Rules
Thousands of cars are yet to be certified under a new emissions regime that starts Saturday

BERLIN— Volkswagen AG VOW3 +0.42% on Thursday warned earnings could be hit by up to €1 billion ($1.17 billion) because of delays in certifying new vehicles to meet stricter European emissions testing rules.

Volkswagen’s namesake VW brand has an inventory backlog of tens of thousands of vehicles that haven’t yet been certified under a new emissions test that comes into force Saturday. The new test measures greenhouse-gas emissions and other tailpipe pollutants as well as fuel consumption and the range of new electric vehicles on a single charge.

So many cars are backlogged that Volkswagen has had to rent parking lots to store thousands of vehicles as they gradually move through the process.

News of the potential hit to third-quarter earnings, due to be released Oct. 30, initially prompted a 2% fall in Volkswagen’s stock. Shares recovered to trade slightly higher in early afternoon trading.

“The issue is painful but under control,” said Arndt Ellinghorst, analyst at Evercore ISI, a London-based brokerage, estimating that the VW brand’s profit margin would fall to 2% in the third quarter from 5.5% in the previous quarter.

In a conference call, Thomas Zahn, the head of sales and marketing for the VW brand in Germany, said the company had been slow to certify new vehicles because resources were being used to handle the fallout from its diesel-emissions scandal.

Volkswagen officials have said the company’s emissions-engineering teams have been preoccupied with the recall of nearly 11 million diesel vehicles, hampering their ability to get ready for the new European testing regime.

For weeks, Volkswagen’s testing treadmills have been running three shifts to get vehicles certified, Mr. Zahn said.

Volkswagen has previously said it would delay production of 200,000 to 250,000 vehicles this year because of the new rules.

The European Union accelerated efforts to tighten testing procedures for new vehicles in the wake of Volkswagen’s admission in 2015 that it had rigged millions of diesel vehicles to cheat emissions tests. One set of tests called the World Harmonized Light Vehicle Test Procedure, or WLTP, comes into effect Saturday, and consists of a new set of metrics for laboratory treadmill tests.

Another test, called Real Driving Emissions, uses a mobile tailpipe rig that measures pollutants in fumes coming straight out of the tailpipe during real road driving. It was this test, conducted by a group of West Virginia postgraduate students that first detected Volkswagen’s elaborate diesel-emissions cheating scheme that had been in place for nearly a decade.

Europe began requiring RDE testing on all new vehicles in September 2017 and allowable diesel pollutants will be tightened again in a second phase of the RDE testing program in 2020.

Over recent months the new WLTP standard has created a headache for other European car makers trying to make cars compliant before the Saturday deadline. Volkswagen and Daimler AG warned earlier this year the changeover could impact availability of some models and weigh on earnings.

Peugeot , Daimler’s Mercedes-Benz and BMW AG said this week that all vehicles on offer are ready for the standard.

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:

  • PDCO -15.2%, UEPS -13.4%, ANF -11.5%, DLTR -5.8%, BURL -4.5%, KIRK -4.3%, GEF -3.6%, CRM -3%, HOME -2.7% (also announces departure of CFO Judd Nystrom; names Jeffrey R. Knudson next CFO, effective September 28), DG -2.3%, PVH -1.2%, CPB -1%

Other news:

  • DVA -4.9% (California Assembly passes dialysis legislation bill)
  • CRON -4.2% (pulling back following yesterday's 15% move higher)
  • TLRY -3.4% (pulling back following yesterday's 20% move higher)
  • LC -2.2% (COO Sameer Gulati resigned effective on December 31)

Analyst comments:

  • VOD -3.1% (downgraded to Neutral from Buy at BofA/Merrill)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:

  • TITN +21%, TLYS +15.8%, SIG +13%, MESO +12.2%, GES +9.5%, CIEN +7.7%, SMTC +7.2%, PERY +5.3%, GMS +3.4%

Other news:

  • MNOV +8.5% (modestly higher after noting its SPRINT-MS Phase 2b trial of MN-166 (ibudilast) in progressive multiple sclerosis results were published in NEJM)
  • INSY +7.4% (granted Fast Track designation by the FDA for epinephrine nasal spray as an investigational treatment for anaphylaxis)
  • TRNC +3.5% (following Nieman Lab report that Donerail Group has secured financing for a takeover bid)
  • VGR +2.9% (indicated higher after declaring unchanged $0.40/share quarterly dividend and granting stockholders additional 5% annual stock dividend-also unchanged from prior year)
  • VSTM +1.5% (appoints Robert Gagnon CFO, effective August 28)

Analyst comments:

  • TOCA +9.7% (initiated with a Buy at Chardan Capital Markets)
  • ARLO +3.7% (upgraded to Buy from Neutral at Guggenheim)
  • GCO +1.7% (upgraded to Buy at Pivotal Research Group)
  • TNDM +1.6% (initiated with a Buy at Berenberg)
  • NTNX +1.4% (upgraded to Neutral from Underweight at JP Morgan)

>>> US Early premarket gappers


Early premarket gappers

Gapping up:

  • TLYS +10%, GES +9.9%, SMTC +8.2%, TRNC +3.3%, ECYT +2.4%, VSTM +1.5%, DG +1.4%, VGR +1.3%, MIK +1.2%, MNOV +0.8%

Gapping down:

  • UEPS -13.4%, LC -4.6%, HOME -4.2%, CRM -3.1%, CRON -2.8%, TLRY -2%, PVH -1.6%

Challenges : Nucléaire: un rapport commandé par Bercy et Hulot prône la construc

Nucléaire: un rapport commandé par Bercy et Hulot prône la construction de six EPR
Un rapport commandé par le ministre de l'Economie, Bruno Le Maire, et le désormais ancien ministre de la Transition énergétique, Nicolas Hulot, prône la construction de six réacteurs nucléaires de type EPR à compter de 2025, affirment Les Echos à paraître jeudi.

Le rapport est le résultat d'une mission lancée par les deux ministres concernant "le maintien des capacités industrielles de la filière nucléaire en vue de potentielles nouvelles constructions de réacteurs", affirme le quotidien économique, qui cite la lettre de mission à l'origine du rapport mais pas ce dernier. Contactés par l'AFP, Bercy n'a pas souhaité commenter ces informations, tout comme l'entourage de l'ex ministre.

Après avoir dénoncé en juin une "dérive" de la filière nucléaire, Nicolas Hulot a, lors de l'annonce de sa démission mardi, fustigé l'énergie atomique, "cette folie inutile économiquement, techniquement, dans laquelle on s'entête", alors qu'EDF plaide pour la construction rapide d'un deuxième réacteur de troisième génération (EPR), après celui de Flamanville (Manche). Yannick d'Escatha, ancien administrateur général du Commissariat à l'énergie atomique (CEA) et actuel conseiller du président d'EDF et Laurent Collet-Billon, ex-délégué général à l'armement, étaient chargés respectivement des volets militaire et civil de ce rapport.

Entrée en service en 2035
Selon le journal, ce rapport plaide pour la construction d'un premier lot de six nouveaux EPR à partir de la prochaine décennie. La construction d'un premier exemplaire démarrerait en 2025 pour une entrée en service en 2035. La construction d'un deuxième réacteur serait lancée deux ans après le premier, et ainsi de suite pour construire les six premiers réacteurs. La France prépare actuellement sa "programmation pluriannuelle de l'énergie" (PPE) pour les périodes 2018-2023 et 2024-2028.


"Le gouvernement a logiquement engagé plusieurs missions et expertises préparatoires à ses décisions. Ce sujet sera examiné dans le cadre de la préparation de la PPE au cours de l'automne", a indiqué à l'AFP le ministère de la Transition écologique et solidaire, en réaction à ces informations. Un débat public a été organisé en juin dernier sur ce sujet complexe afin de recueillir les avis de la population lors de réunions publiques, d'un questionnaire et d'un site internet, ou encore d'un panel de 400 citoyens réunis à l'Assemblée nationale pour exprimer leurs opinions.

Le rapport concernant la PPE doit être remis courant septembre.

>>> What to look at today - 30th of August 2018

Stock gains in Asia evaporated, despite another fresh record from their U.S. counterparts, as trade and geopolitical issues continued to simmer. The dollar advanced and Treasury yields were little changed.
Japan’s equity indexes erased earlier gains and stocks fell in Hong Kong and China, while they were little changed in South Korea and Australia. European equity futures slipped. Earlier, the S&P 500 Index rose a fourth day to close above 2,900 for the first time after a better-than-expected reading on the U.S. economy and a rally in tech shares buoyed sentiment. The Australian dollar plunged after second-quarter business investment was much worse than expectations, while the New Zealand dollar slumped as business confidence hit a 10-year low.
US After Hours TLYS / GES +10%, SMTC +8% are higher while UEPS -13%, HOME -4%, CRM -3%, PVH -2% are lower following earnings/guidance

Nikkei +0.09% ang Seng -0.92% CSI -0.71% Shanghai -0.78% Shenzen -1.06%

Eur$ 1.1692 CNH 6.8398 CNY 6.8348 JPY 111.68 GBP 1.3021 CHF 0.9714 TRY 6.5206 WTI$ 69.73 +0.325

S&P -0.12% EuroStoxx -0.295 FTSE -0.25% Dax -0.30% SMI -0.15%

Macro :
- U.K. Warns EU Faces Choice of May’s Brexit Plan or Risk No Deal
- Italy Denies Reaching Out to ECB for Help on Bond Purchases
- White House Says California Agreed to Talks on Fuel Economy

Keep an eye on :
- ADEN SW : Adecco Revamps Executive Committee; Marshall, Schuermann Leave
- ARW LN : Arrow Global 1H Adj. Profit Up 10%; On-Track To Meet FY Views
- AZN LN : AstraZeneca Gets EC Approval For Diabetes Device
- BFSA GY : Befesa Second Quarter Adjusted Ebitda EU44.3 Mln
- BNP FP : BNP Paribas to Pay Fine for Attempted Benchmark Manipulation
- EN FP : Bouygues 1H Rev. EU15.7B; Est. EU15.4b; Confirms Outlook
- CAPIO SS : Ramsay Has Not Held Talks With Capio Board on Raising Bid
- CNP FP : CNP Assurances to Finance Caixa Seguridade Deal W/ Own Funds
- COLOB DC : Coloplast CEO Sells Shares for DK103m After Exercising Options
- EKTAB SS : Elekta First Quarter Mixed vs Estimates; Outlook Unchanged
- EVT GY : Evotec, CHDI Foundation Extend Huntington’s Disease Pact
- EVS BB : EVS Broadcast Second Quarter Revenue Misses Lowest Estimate
- FGR FP : Eiffage First Half Revenue 3.9% Above Estimates
- FIE GY : Fielmann Second Quarter Pretax Profit EU54.8 Mln
- HOCN SW : Hochdorf Cuts 2018 Guidance Citing 1H Below Expectations
- IIA AV : Immofinanz First Half Net Income From Continuing Ops EU89.5 Mln
- IWG LN : IWG ‘Not Worth the Risk,’ RBC Gives Stock Only Negative Rating
- G24 GY : Scout24 in Talks With CEO Ellis Over Possible Early Resignation
- GS US : Goldman Is Said to Hire JPMorgan Health Banker: Bus. Insider
- HEIA NA : Heineken Recyclable-Keg Dispute with AB InBev Gets ITC Review
- GKP LN : Gulf Keystone Petroleum Holder to Offer Shares
- HAL NA : HAL First Half Net Asset Value Per Share EU141.46
- HAS LN : Hays Says Well-Positioned to Capitalize on Growth Opportunities
- HTG LN : Hunting First Half Revenue 4.6% Above Estimates
- IBAB BB : Ion Beam, Parkway Pantai Sign PT Contract for EU35m-EU40m
- IDOX LN : Idox CFO Steps Down With Immediate Effect, Board Seeks Successor
- KDS NA : Kiadis Pharma Appoints Scott A. Holmes as New Finance Chief
- LI FP : Stay Away From ‘Optically Cheap’ Property Stocks: Morgan Stanley
- MBTN SW : Meyer Burger Names Manfred Haener CFO Effective October 1
- MU US : Micron to Invest $3B in Semiconductor Manufacturing Plant in Va.
- NESN SW : Nestle Opposes Swiss Fair Food Initiative, Handelszeitung Says
- ORA FP : Orange France Names Geoffroy de Buchet Finance Director
- PRU LN : Prudential ‘Hugely Undervalued’ on Nearly All Metrics: Berenberg
- RBD LN : Reabold Resources Reports Discovery at VG-3 Well in California
- ROG SW : Roche Says Hemlibra Prophylaxis ‘Significantly’ Reduced Bleeds
- SSABA SS : SSAB Shuts Down Blast Furnace Ops at Special Steels’ Mill
- SSE LN : SSE Retail and Npower Merger Provisionally Cleared by CMA
- SKY LN : U.K. Takeover Appeal Board Publishes Reasons for Sky Floor Price
- SO IM : Sogefi Settles Outstanding Claims Made By Two Customers
- SAZ GY : Stada Head Albrecht to Leave Company Definitively, FAZ Reports
- URW NA : Unibail First Half Net Rental Income EU861 Mln
- UCG IM : Moody’s: ECB Existing Loans to Weigh on Italy Weak Profitability
- VICO SS : Vicore Pharma Names Carl-Johan Dalsgaard New CEO
- VOW3 GY : Volkswagen Bank Places Auto-ABS With Volume of Above EU750m
- KVW NA : VolkerWessels First Half Ebitda EU93 Mln
- SNWH LN : WH Smith Sees Outcome for Yr ’18 to Be in Line W/ Expectations
- XAR LN :Xaar Says Underlying Trading Since End June Below Prior Views
- WLN FP : Payment Innovators to Maintain Competitive Positions: Berenberg
- WPP LN : WPP Margin Consensus Optimistic With New CEO Imminent: Berenberg

>>> Europe : Brokers Upgrades & Downgrades - 30th of August 2018

>>> Up
* Big Yellow Group Raised to Neutral at Kempen & Co
* Bossard Upgraded to Hold at Research Partners; PT 190 Francs
* Eurobank Upgraded to Buy at HSBC; PT 1.25 Euros
* Petrofac Upgraded to Equal-weight at Morgan Stanley; PT 8 Pounds
* Piraeus Bank Upgraded to Buy at HSBC; PT 3.20 Euros
* Unite Group Raised to Overweight at Morgan Stanley

>>> Down
* Aroundtown Cut to Accumulate at SRC Research; PT 8.30 Euros
* Carmila Downgraded to Underweight at Morgan Stanley; PT 21 Euros
* Glaxo Downgraded to Hold at Liberum
* Intu Downgraded to Underweight at Morgan Stanley; PT 1.50 Pounds
* IWG Downgraded to Underperform at RBC
* Worldline Downgraded to Hold at Berenberg

>>> Initiation
* Codemasters Group Holdings Rated New Hold at Berenberg
* Frontier Developments Rated New Buy at Berenberg; PT 16 Pounds
* PayPal Rated New Buy at Berenberg; PT $104
* Sumo Group Rated New Buy at Berenberg; PT 2.05 Pounds

>>> Call