>>> US Early premarket gappers


Early premarket gappers

Gapping up:

  • TIF +8.2%, ARCO +4%, ANW +3.5%, CTRP +3%, RMTI +2.9%, HEAR +2.7%, CLLS +0.7%, ITRN +0.6%

Gapping down:

  • RRGB -17.6%, TCS -13.6%, ARDX -8.8%, PFNX -8.7%, TGT -6.5%, CTRN -3.3%, URBN -2.8%, BL -2.3%, IBTX -1%, LOW -0.6%, QIWI -0.5%

(MS) Telco: French TElco consolidation back on the agenda ?


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>>> What to look at today - 23rd of May 2018

Japanese shares led most Asian stocks lower and the yen appreciated as investors eyed risks from Turkey to North Korea. Treasuries ticked higher, while oil headed lower.
With optimism over U.S.-China trade talks fading from earlier in the week, concerns range from iffy prospects for President Donald Trump’s historic summit with North Korea’s leader to Turkey’s financial-market stability as the lira hits successive record lows. Japan’s currency rose the most in almost three weeks at one point as traders sought a haven, and the Topix index of Japanese stocks fell as much as 1 percent. Equity benchmarks from Hong Kong to Sydney declined. FTSE 100 futures fell in early London trading.


Macro :
- Emerging-Market Stress Just Begun as Record Debt Wall Looms
- China’s Trade Deal With U.S. Leaves Germany Squeezed in Middle

Keep an eye on :
- AIEA LN : James Halstead Doesn’t Intend to Make Offer for Airea
- AZM IM : Peninsula, Other PE Funds Considering Investing in Azimut: Sole
- BARC LN : Barclays-StanChart Merger Has ‘No Strategic Logic’: KBW
- EDP PL : EDP Picks StormHarbour for Securitization of Tariff Deficit
- ETL : FCC denies Eutelsat's petition for access to fixed satellite service market in the US - press Related
- EKO NO : Ekornes Board Recommends NOK139 a Share Cash Offer From Qumei
- GFC FP : Gecina Buys Office Building in Neuilly-sur-Seine for EU30.5M
- GKP LN : Gulf Keystone Reports $18.8m Payment for Shaikan Sales in Feb.
- HFG LN : Hilton Food Explores Opportunities for Domestic, Overseas Growth
- BAER SW : Julius Baer 4-Month Figures Show Strong Growth: Morgan Stanley
- KINVB SS : Kinnevik to Grow Portfolio of Unlisted Holdings, Chair Tells DI
- MHG NO : Marine Harvest Considers 5 Year Senior Unsecured EUR Bond Issue
- MDF SM : Duro Felguera Refinancing Backed By Lenders With 100% of Debt
- MKS LN : Marks & Spencer FY Slightly Ahead, Short Squeeze Likely: MS
- UG FP : PSA, Nidec Set Up JV to Develop Electric Traction Motors
- PFV GY : Pfeiffer Vacuum Sees Full Year Sales EU640 Mln To EU660 Mln
- PRY IM : General Cable Down on Report of DOJ Probing Possible FCPA Issues
- RBI AV : Raiffeisen Starts Merger With Polish Unit, Part of Its Exit Plan
- RTN LN : Restaurant Group Cut to Neutral at JPMorgan; PT 3.20 Pounds
- RIO LN : Rio Is Said Ready to Accept $3.5 Billion Deal to Exit Grasberg
- SAS SS : SAS Isn’t Targeting M&A, Buyout, Chairman Dilling Tells Borsen
- SEN GY : Senvion CEO Geissinger Resigns Effective Immediately
- SCT LN : Softcat Outlook Well Ahead, EPS Estimates Raised 9%: Jefferies
- SVT LN : Severn Trent Full Year Adjusted Operating Profit Meets Estimates
- TEF SM : Telefonica to Launch 02 as Low-Cost Brand in Spain: Cinco Dias
- TSRO US : Potential Gilead Takeover of Tesaro Would Make Sense: Wedbush
- TKA GY : Thyssenkrupp CEO Under Fire by Activists as Elliott Takes Stake
- TKA GY : Thyssenkrupp’s CEO Under Fire as Activist Elliott Buys Stake
- VASTN NA : Van Herk Raises Stake in Vastned Retail to 25.05%: AFM Filing
- VED LN : Indian Police Kill 9 People Protesting Vedanta Copper Plant: AP
- VIE FP : Veolia Wins EU450m Order From ArcelorMittal for Steel-Plant Work

>>> Europe : Brokers Upgrades & Downgrades - 23rd of May 2018

>>> Up
* Bucher Upgraded to Buy at Kepler Cheuvreux; PT 450 Francs
* Duerr Upgraded to Hold at Bankhaus Metzler
* Faes Farma Upgraded to Market Perform at BBVA; PT 3.51 Euros

>>> Down
* 888 Downgraded to Sell at Investec; Price Target 2.70 Pounds
* Dr Hoenle Downgraded to Hold at M.M. Warburg
* Euronext Downgraded to Sell at UBS; PT Set to 51 Euros
* Focus Home Interactive Cut to Hold at Portzamparc
* Grand City Properties Cut to Hold at DZ Bank; PT 22.50 Euros
* Grainger Downgraded to Hold at Stifel; PT 3.32 Pounds
* Halfords Downgraded to Hold at N+1 Singer; Price Target 4 Pounds
* IAG Downgraded to Reduce at HSBC; PT 5.90 Pounds
* Iberdrola Downgraded to Hold at HSBC; PT 6.80 Euros
* Sanofi Downgraded to Add at AlphaValue
* TAG Immobilien Downgraded to Hold at Bankhaus Lampe
* Weir Downgraded to Neutral at Exane (Earlier)

>>> Initiation
* Accentro Real Estate Rated New Buy at SRC Research; PT 13 Euros
* Computacenter Rated New Buy at Stifel; PT 17.40 Pounds
* Elementis Rated New Buy at HSBC; PT 3.30 Pounds
* Raiffeisen Reinstated Underweight at Morgan Stanley; PT 29 Euros
* Victrex Rated New Hold at HSBC; PT 26.50 Pounds


>>> Call

>>> premarkets

ML

STAN CHART - Barclays said to explore a potential merger with them (798)..+3-5%

BRITVIC - Revs 2% ahead, EBITDA GBP80.5m with margin at 11% v BAML 9.3%(774)+2%

BARCLAYS - Said to explore a potential merger with StanChart; FT report(215)+2%

GREAT PORTLAND - 845p NAV is +5.8%, underlying valuations are +2.9% (689.8).+2%

BAER - Better than exp with AuM 1% ahead & net inflows of 5-6% ahead too(64)+2%

MONDI - +ve read. Burgo & Lecta both to increase CWF and UWF prices (2086)+0.5%

SEVERN TRENT - Inline. U/lying EPS 2% ahead of cons / PBIT is inline(2070)+0.5%

IGG - Trading update looks in line ahead of capital markets day today (885).u/c

BOVIS - Trading update looks fine. No new news on anything unexpected (1291)u/c

SAGE - Competitor Intu printed strong FQ3 results and guided up FQ4 (678.8).u/c

MINERS - Copper -0.7%, Iron Ore fut -1% with BHP OZ +0.4% & RIO OZ +0.14%...-1%

RIO - Spec that Rio is ready to accept a $3.5bn Grasberg exit deal (4370.9).-1%

WPP - Sentiment -ve. Loses $400m HSBC media duties to PHD (Omnicom) (1332.8)-2%

MARKS & SPENCER - Pretax profit ok but margins weak and clothing poor(291)-2-3%

 

MS

COMPANY  INDICATION  COMMENT

BAER SW  UNCH        IMS SHOWS GROWTH TRENDS CONTINUE & DELIVERY ON COSTS - CET1 LIGHT @ 13.3% -20BPS (QoQ)

BARC LN  +2%         SAID TO BE EXPLORING POTENTIAL MERGER WITH STAN.CHART (CS, DBK & DBS ALSO MENTIONED)

BVIC LN  +1%         REVS +4.5%, STRONG GROWTH IN Q2. TOO EARLY TO ASSESS IMPACT OF SOFT DRINK TAX LEVY

MKS LN   +5%         WILL SQUEEZE TODAY WITH 17% SHORT BASE AS COMPANY MAINTAINS FY GUIDANCE & DIVIDEND

PFV GY   +1%         FY18 OUTLOOK SLIGHTLY POSITIVE

STAN LN  +3%         SAID TO BE EXPLORING POTENTIAL MERGER WITH BARCLAYS

SVT LN   UNCH        SMALL EPS BEAT, DIVI IN LINE, £100m FURTHER COST SAVINGS TO BE RE-INVESTED

 

RBC

*BABCOCK:             -1% FY'18 results in line, outlook measured.

*BARCLAYS:            -1% FT: Looking at potential mergers with banks including STAN.

*BOVIS HOMES:         0% trading in line, continues to see good demand for new homes.

*BRITVIC:               +2% H1 results in line to touch better, FY'18 outlook in line, strong into.

*FAROE PETROLEUM:      0% commits to Brasse East Well in North Sea.

*JULIUS BAYER:           +1% 4-month interim in line to touch better, AUM ahead.

*M&S:                        +1% FY results headline better on PBT, Food light but margin better.

*RIO TINTO:                -1% confirmed in talks with Indonesia, $3.5B the figure cited.

*SEVERN TRENT:             0% FY'18 EPS ahead, numbers in line.

*STANDARD CHARTERED:   +2% FT: Looking at potential mergers with banks including STAN.

*WPP:                         -1% WSJ: OMNICOM said to win HSBC Global Media buying account.

*ZPG:                          +1% H1 earnings touch better, higher revenue growth

 

Macq Indications:

 

* Barclays- Said to be exploring merger with Standard Chartered (FT). +3%

* Bovis- Solid trading update; cash return inline. Unch

* Britvic- Rev’s up 4.5%, Strong growth in Q2. Too early to assess impact of soft drink tax levy. +1%

* Great Portland- EPRA NAV up 5.8% to 845p, confident outlook. Unch

* IG Group- Reassuring trading update, FY net Rev expected c.£565m (v sml beat), stock has travelled well into this update. Unch

* M&S- 4Q LFL clothing-and-home unit sales -3.4% (cons. -1.3%); 4Q -0.6% LFL food sales (cons. +1%); FY underlying pretax profit £580.9m (cons. GBP568m). -3%

* Miners- Oil -1.7% from our close yesterday, taking all commod’s lower. -1%

* Rio’s- Press reports suggesting a potential sale of Grasberg to PT Indonesia Asahan Aluminium for US$3.5bn. AU Line unch vs our close. 

* Severn Trent- Good results. beat at operating profit and EPS level, RORE up to 11.5% real, and ODIs are a big beat - now at 2.3%. Unch

* Softcat- Strong trading update; Will deliver FY results above expectations. +5%

* Stan Chartered- Said to be exploring merger with Barclays. (FT). +3%

* Wood Group- Wins Biotech Facility contract until 2020. +0.5% 

* WPP- HSBC has moved its global media account to Omnicom from flagging WPP, following a review. -1-2%

* Zalando- No1 shareholder Kinnevik says Zalando core name for them, AGM Today. +1%

 

CS

Babcock       +1%    Revs 5.36bln cons 5.37bln PBT 512.5mln cons 5104.3mln


Barclays     -1-2%   Barclays has explored potential merger of Stan Char, FT


Bovis         M/P    Market conditions remain robust, on track to deliver


Britvic      +1-2%   1H revs 733.2mln vs cons 721.4mln EPS 21.2p vs cons 19.3p


Cosmo        -25%    Receives CRL from FDA regarding Methylene Blue MMX NDA


IG Group      M/P    Trading update ahead of CMD inline


Julius Baer  +1-2%   IMS - AUM CHF401bn cons CHF399bn, gross margin ahead


Lem Holding   +1%    FY17 Turnover 1% ahead, FY EBIT 1% ahead, outlook inline


M&S          +1-2%   PBT beat, margin guidance better


Miners       -0.5%   Copper -0.55%, Brent -1.60%, Iron Ore -1.10%, China -0.80%


Mittal       -0.5%   Trump Is Targeting 10% Cut in EU Steel, Aluminum Exports


Oils          -1%    US API -1.3m barrels vs est -2.8m. Brent 1.6% to $79.05


Rio           M/P    Ready to accept a $3.5 billion deal with Indonesia


Severn Trent +0.5%   FY revs GBP1.69B est GBP1.73B, Op profit inline


Softcat      +2-3%   Strong update - Maintained the momentum


SSAB         -0.5%   Trump Is Targeting 10% Cut in EU Steel, Aluminum Exports


Stan Char    +4-5%   Barclays has explored a potential merger, FT


Thyssen      -0.5%   Trump Is Targeting 10% Cut in EU Steel, Aluminum Exports


UBS          +0.5%   Positive read from Julius Baer numbers


Vedanta      -0.5%   Numbers inline with previous report


WPP           -1%    HSBC moves Global Media account to Omnicom's PHD, WSJ

 

 

>>> Europe vs États-Unis, de la rhétorique à l’action, dans la crise iranienne c

Crise iranienne, de la rhétorique à l’action

Nouvel ordre mondial

Pourquoi l’Europe doit tenir tête aux Américains

Europe vs États-Unis, de la rhétorique à l’action, dans la crise iranienne comme ailleurs© Christophe Gateau/AP/SIPA;

Peter Altmaier, ministre allemand de l’Économie et de l’Énergie, a mis les États-Unis en garde contre la riposte de l’Europe

Par Ardavan Amir-Aslani

La crise engendrée par le retrait américain de l’accord de Vienne, et les tentatives désespérées des Européens pour l’enrayer, démontrent leurs difficultés à adopter une position ferme face aux États-Unis. L’Europe doit pourtant tenir tête aux Américains si elle ne veut pas être traitée en alliée servile, ce qu’elle risque de devenir en l’absence de réaction forte. En l’espèce, se concentrer uniquement sur le dossier iranien risque de lui fermer la porte d’une stratégie plus globale.

Au cours des quinze derniers jours, l’Union européenne a évoqué quatre solutions possibles pour sauver l’accord. Aucune d’entre elles ne sera pourtant en mesure de pallier rapidement les difficultés de l’économie iranienne.

“L’Union européenne a évoqué quatre solutions possibles pour sauver l’accord. Aucune d’entre elles ne sera pourtant en mesure de pallier rapidement les difficultés de l’économie iranienne”

Les lois de blocage, si elles annulent les sentences judiciaires américaines à l’encontre d’entreprises européennes pour non-respect des sanctions contre l’Iran, ne s’appliqueront qu’au sein de l’Europe. Les États-Unis pourront donc toujours sanctionner les grands groupes européens présents sur d’autres marchés internationaux. Dans la même veine, on voit mal dans quelle mesure un OFAC [Office of Foreign Assets Control, ndlr] européen pourrait pénaliser les entreprises américaines en désaccord avec les objectifs géostratégiques européens, étant donné qu’Européens et Américains s’accordent sur de nombreux enjeux… sauf le dossier iranien.

La création d’un fonds souverain européen ne verra pas davantage le jour, compte tenu de sa difficile mise en place à l’échelle européenne, et de la lenteur des procédures que l’on peut observer dans les pays qui possèdent un dispositif équivalent, comme la BPI en France. Ainsi, la Banque centrale iranienne attend depuis deux ans et demi le budget de 500 millions d’euros alloué aux entreprises françaises désireuses d’investir en Iran.

Enfin, les Américains ont clairement signifié qu’aucune entreprise européenne ne bénéficierait d’exemptions à leurs sanctions. On imagine mal, en effet, pourquoi Donald Trump leur accorderait un tel privilège au détriment des entreprises américaines, ainsi qu’une bouffée d’oxygène à l’économie iranienne, quand son objectif à terme est d’obtenir un changement de régime en Iran. Les grands groupes européens eux-mêmes n’accordent guère de crédit à ces propositions, puisque Siemens et Total ont déjà annoncé qu’ils suspendaient leurs investissements en Iran.

Le temps presse

Ces mesures risquent en outre de fragiliser un peu plus l’Union européenne. En effet, partageant la position américaine sur la question balistique et la question de la présence iranienne au Moyen-Orient – renforcée sur le plan politique par la victoire du Hezbollah au Liban et de Moqtada al-Sadr en Irak, avec derrière lui le parti Fateah (la branche politique du mouvement Hachd Al-Chaabi, les miliciens chiites organisés par les Iraniens) – elle ne parviendra pas à mobiliser 28 États membres pour défendre un dossier aussi peu consensuel.

En réalité, le cas iranien met surtout en lumière le bouleversement de l’ordre mondial entraîné par les décisions de Washington, qui mettent à mal la crédibilité de ses engagements diplomatiques, nient le principe même du multilatéralisme et la position des autres membres du Conseil de sécurité de l’ONU. Le transfert de l’ambassade américaine de Tel-Aviv à Jérusalem, contraire au droit international en vigueur, aux résolutions de l’ONU et à la position européenne sur la question, la guerre entamée contre l’Europe sur la question des barrières douanières sur l’acier, enfin la menace de sanctions à l’encontre de l’Allemagne et de la France pour leur soutien à la Russie, frappée elle aussi d’embargo économique, ne sont que quelques exemples de cette politique isolationniste, qui augurent mal les discussions à venir avec la Corée du Nord.

“Le cas iranien met surtout en lumière le bouleversement de l’ordre mondial entraîné par les décisions de Washington, qui mettent à mal la crédibilité de ses engagements diplomatiques, nient le principe même du multilatéralisme et la position des autres membres du Conseil de sécurité de l’ONU”

À juste titre, le ministre allemand de l’Économie et de l’Énergie, Peter Altmaier, a mis les États-Unis en garde contre la riposte de l’Europe. Celle-ci aurait tout à gagner à faire un geste fort en rappelant, par exemple, ses ambassadeurs. Car dans la gestion de la crise iranienne, comme du reste, “time is of the essence” : il est désormais urgent de passer de la rhétorique à l’action.

Publié le

>>> Weatherford could have to sell one of its 'larger businesses' next year to d

Weatherford could have to sell one of its 'larger businesses' next year to delever
22 MAY 2018
Weatherford [NYSE:WFT] CEO Mark McCollum said he believes the company may have to sell one of its larger businesses next year in order to delever.

Speaking at the UBS Global Oil & Gas Conference in Austin, Texas, McCollum today said exactly which business will depend on where they see the market at the time.

"Long term, as we go into next year, I don't exactly know what we're going to look at for each of the big businesses, but I still suspect that there may be one of our larger businesses that we're going to have to sell in order to delever," he said. "It's going to be a significantly different answer from a delevering standpoint to do it post- [business] transformation, than pre-. Because right now selling a business that is fundamentally underperforming, on a relative basis doesn't actually delever the business."

The Houston, Texas-based oilfield services firm has been looking to divest non-core assets going back to last year, a process reportedly being led by advisor Morgan Stanley.

Last year it sold some if its hydraulic fracturing assets into a JV with Schlumberger that raised USD 535m, and in December sold its US pressure pumping assets for USD 430m. The company is also running a process to sell its land drilling rigs business, a process that has been slowed by legal, customer qualification and contract hurdles.

The company also launched two other divestiture projects in 1Q which are expected to generate approximately USD 500m by year-end, not including proceeds from the drilling rigs sale.

>>> FaceBook - CEO: Facebook is ready to make significant investments to keep pe

CEO: Facebook is ready to make significant investments to keep people safe; improvements will significantly impact profitability - remarks to EU
- We haven't done enough to prevent harm or misuse
- Many Europeans used our safety check tool after attacks
- Will find a simple way to remove permissions to apps; app will not get access to your information if unused for 3 months - We will conduct audits and suspend/ban apps and developers; have investigated thousands of apps and suspended 200 apps for data abuses
- Facebook will go further to comply with GDPR rules; The same new privacy settings will be available to people around the world
- Reiterates Facebook is using AI to identify and remove fake accounts that are responsible for much of the misinformation
- Working with governments to share information on threats in real time
- Reiterates making advertising on Facebook much more transparent