WSJ : Elon Musk Predicts Rocket Launches Will Be as Routine as Airline Flights

Elon Musk Predicts Rocket Launches Will Be as Routine as Airline Flights
SpaceX chief says enhanced reusability eventually will enable the same booster to fly 100 times

Staking out another bold space objective, Elon Musk said the latest configuration of his rocket is designed to fly as many as 10 times without any scheduled maintenance, and ultimately could be refurbished and blast off at least 100 times.

Speaking Thursday before the first planned launch of an upgraded SpaceX Falcon 9 rocket, Mr. Musk spelled out his long-term vision of reusability, a concept he has pioneered to revolutionize space transportation. The mission from Florida’s Kennedy Space Center was aborted by a last-minute technical problem, but a second attempt was scheduled for Friday.

Space Exploration Technologies Corp., as the company is formally known, already reuses the lower stage of its current-generation rockets, typically months after the first use.

But starting next year, the company plans to use the same main engines and lower stage to conduct two consecutive missions in a single day, Mr. Musk said. Going further than he has before, he predicted additional advances intended eventually to make space travel as routine and safe as boarding a jetliner.

When it comes to both SpaceX and electric-car company Tesla Inc., which Mr. Musk also runs, the billionaire has been criticized by auto-industry analysts and aerospace rivals for boasting about technical accomplishments while laying out super-ambitious goals and specific timetables that often prove unrealistic.

Recently he clashed with Wall Street analysts over whether Tesla has the ability to ramp up production and resolve nagging assembly-line problems.

Mr. Musk’s latest comments about SpaceX risk a repeat of that dynamic if the company fails to deliver. Over the years, the company has fallen short of goals to increase launch rates or complete new spacecraft on schedule.

But instead of dialing back public projections, Thursday’s news conference highlighted Mr. Musk’s determination to continue capturing the limelight with increasingly ambitious goals.

Extolling the latest Falcon 9 as “the most reliable rocket ever built,” the SpaceX chief went on to say he is certain his engineering team also “will achieve full reusability” of the upper stage, which now burns up “like a meteor” as it returns to the atmosphere. Falcon 9 rockets have suffered two catastrophic explosions since 2015. That has compared with no such failures involving rockets built by rival United Launch Alliance , a joint venture of Boeing Co. and Lockheed Martin Corp. , over a much longer period.

If the reusability strategy succeeds, Mr. Musk held out the promise of cutting the price of orbital launches to $5 million or $6 million, from $50 million or $60 million currently. “That would be quite insane,” he said, though customers still would have to shoulder part of the development costs.

But Mr. Musk didn’t explain when that could occur, or how such a drastic change in his business plan would still produce enough revenue to fund pending multibillion-dollar projects to develop a behemoth deep-space rocket and deploy thousands of small communication satellites.

Throughout his typically brash performance, Mr. Musk reiterated the tenets of his ambitions for SpaceX. He aims to build a fleet of rocket ships able to transport humans to Mars, but flexible enough to operate at roughly the cost and frequency of traditional airlines.

To move toward that goal, however, SpaceX first has to prove it can safely fly astronauts on today’s version of the Falcon 9. National Aeronautics and Space Administration officials are considering whether to approve putting astronauts in the capsule on top of the rocket while it is loaded with super-cooled fuel. Mr. Musk said the safety issue “has been somewhat overblown,” though for the first time he publicly said if necessary, “we can adjust our operational procedures” to fuel the rocket first.


But sticking with the airline analogy, Mr. Musk predicted that in the end, operational changes won’t be necessary “any more than passengers on an aircraft wait until the aircraft is full of fuel before boarding; that would be pretty silly.”

>>> Whitbread acknowledges that demerger plans could draw bids for Costa and Pre

Whitbread acknowledges that demerger plans could draw bids for Costa and Premier Inn - report
Whitbread [LON:WTB], an FTSE-100 leisure company, has acknowledged that its plans to demerge its Costa coffee shops business could attract offers for Costa and its hotel business Premier Inn, The Times reported, citing a Barclays' leisure analyst. The newspaper’s market report section cited research from the analyst said that Whitbread’s investor relations personnel, at an investor roadshow following the company’s results, had conceded that the demerger plans could lead to interest in Costa or Premier Inn.
Whitbread’s investor relations people said the company’s board would have to listen to “very credible” bids but still considers a demerger to be the optimum way to add value, according to the analyst.
Whitbread announced on 25 April that it plans to demerge Costa, a decision that was due to pressure from the activist shareholders Elliott Advisors and Sachem Head, The Times report said.
Whitbread’s market capitalisation stood at GBP 7.74bn at the close of trading in London on Thursday, 10 May.
Background:
Whitbread has retained the investment bank Morgan Stanley to advise on the Costa demerger, according to a report from this news service on 25 April. The report cited three people familiar with the situation for the information.

FT : Saint-Gobain drops bid for control of Sika

Saint-Gobain drops bid for control of Sika

Saint-Gobain, the French building materials company, has given up its fight for control of Swiss rival Sika in return for a pay-off, ending one of Europe’s most contentious takeover battles.

Under the multi-phase plan, first reported in the Financial Times on Thursday, Saint-Gobain confirmed it will still acquire a stake belonging to heirs of Sika’s founder for SFr3.2bn, giving it a roughly 17 per cent stake in the company and 52 per cent of its voting rights. 

The price is SFr500m above what was offered to the Sika heirs for their stake in 2014, said a statement from Saint Gobain. The premium takes into account the increase in Sika’s value since the approach was first made. 

However, Saint-Gobain will then sell a 7 per cent stake back to Sika and has made a commitment to retire the outsized voting rights in the company at an extraordinary shareholder meeting. 

Sika will pay Saint-Gobain just over SFr2bn to cover the cost of the shares and to reflect the change to one share, one vote and the normalisation of certain corporate governance standards. That price is a SFr795m premium market value on May 4, according to the companies. 

The agreement will allow Saint-Gobain to make a profit on the deal while retaining 10.75 per cent of Sika shares. The companies have agreed a two-year lock-up and some stand-still obligations - Saint-Gobain’s stake in Sika will remain at up to 10.75 per cent for four years and up to 12.875 per cent for the following two years. And, in the case of an intended sale, these shares will first be offered to Sika up to 10.75 per cent. 

The deal also allows the Burkard family, who are the heirs to Sika founder Kaspar Winkler, to exit the company. Urs Burkard, a fourth generation family member, said: “The primary concern of the family has always been to ensure Sika's success and long-term prosperity.” 

Paul Hälg, Sika’s chairman, expressed relief at a “positive outcome”. 

Guillaume Texier, Saint Gobain CFO commented:

I think it's a good deal for Saint-Gobain. There was a limited window of opportunity to put an end to the uncertainty. From our point of view, this deal meets at least three very important conditions. One, it creates value for Saint-Gobain. Second, it puts an an end to all of this uncertainty. That's what this does as all litigation is finished. And last, it's strategically important as we have 10 per cent of a great company, Sika.

Yes, it was a difficult deal to put together. We wanted all parties in the deal and we wanted all litigation to stop. Doing the deal with two parties is easy, three parties is harder…It was relatively long. I wouldn't say it was painful, but it was work certainly."

The fight for Sika, a chemicals group based in Zug, kicked off in 2014 when Saint-Gobain, its much larger rival, agreed to buy a controlling stake held by the Burkard family for SFr2.75bn. The heirs owned 16 per cent of the company through shares with super-size voting rights, plus 1 per cent through normal shares. 

The agreement was designed to allow Saint-Gobain to secure control without having to make an offer to acquire the remainder of the company’s shares. However, it led to fierce protests from other shareholders, including the Bill & Melinda Gates Foundation, which accused Saint-Gobain of flouting corporate governance standards. 

Sika’s directors, backed by managers and employees, blocked the sale, which has been tied up in legal action ever since. In October 2016, a Swiss court agreed Sika was entitled to stop the family from selling, and the outcome of an appeal is expected this month. 

The family’s agreement with Saint-Gobain was due to expire at the end of this year, after which it would have had to be renegotiated. Saint-Gobain has been criticised by bankers and analysts for spending so long fighting for Sika, when it could have been pursuing other takeover targets. 

However, Sika’s share price has almost doubled since the 2014 bid, allowing Saint-Gobain to lock in a significant capital gain. 

"We were able to have two sides of our brain working – one side working on Sika and the other side working on the strategy of Saint Gobain,” Mr Texier said.

NY Post : Hedge fund Third Point increases short bets against market

Hedge fund Third Point increases short bets against market

Billionaire hedge funder Dan Loeb is seeing more opportunities to bet against the market this year.

Loeb’s $18 billion Third Point fund said Thursday that it has increased its short bets amid increased “disruption” in stocks.

“An important shift in markets happened in the first quarter,” Loeb said on a call with analysts of his Third Point Reinsurance, noting that investors have more options where to put their money than stocks.

But don’t count on Loeb giving tips what to short.

“We can’t give all our secrets away on these calls,” Loeb said in response to an analyst question.

But Loeb isn’t alone in seeing opportunities to short the market.

Short bets against index funds and exchange traded funds increased 24 percent this year, according to analytics firm S3 Partners.

>>> What to look at today - 11th of May 2018

Asian stocks rallied after their U.S. counterparts gained amid relief the latest reading on American inflation suggested less need for the Federal Reserve to accelerate monetary tightening. The dollar steadied after dropping the most since March. The MSCI Asia Pacific Index is heading for its best week since February thanks to easing investor concerns that higher U.S. yields and a stronger dollar would spur broad contagion. Equity benchmarks advanced across most of the region, with Japan’s Topix heading for its highest close in 10 weeks. Malaysian assets trading offshore began to stabilize after the shock election win for the opposition. Ten-year Treasury yields held below 3 percent.

Nikkei +1.11% Hang Seng +1.35% CSI -0.15% Shanghai +0.02% Shenzen -0.57%

Eur$ 1.1916 CNH 6.3357 CNY 6.3421 JPY 109.46 GBP 1.3518 CHF 1.0029 RUB 61.6786

S&P +0.05% EuroStoxx +0.14% FTSE +0.09% DAX +0.01% SMI +0.49%

Macro :
- Emerging Market Stocks, Bonds Suffer Outflows, Jefferies Says
- London Plans Junk-Food Advertising Plan For Transport Network
- Odey Raises Equity Shorts, Cuts Bond Wagers as Fund Gains 17%

Keep an eye on :
- ANA SM : Acciona First Quarter Net Income Misses Lowest Estimate
- ACS SM :
- AIR FP : Airbus Probes Secret Document Leak in India Defense Deal: ET
- AIR FP : *SPACEX ABORTS LAUNCH OF FALCON 9 BLOCK 5 ROCKET
- AF FP : Air France-KLM April Passenger Traffic Falls 2.5% on Strikes
- ALO FP : GE to Buy Alstom Stakes; Ford Fire Recovery: Industrials Wrap
- MT NA : ArcelorMittal First Quarter Ebitda Beats Estimates
- ATT SS : Attendo Close to Selling Finnish Healthcare Unit, DI Reports
- BMPS IM : Monte Paschi First Quarter Revenue Beats Highest Estimate
- BC IM : Brunello Cucinelli First Quarter Net Revenue EU148.3 Mln
- BP/ LN : Exxon, Chevron, BP Signed up for Brazil Pre-Salt Oil Round: ANP
- CE IM : Credito Emiliano First Quarter Net Income EU54.6 Mln
- DBK GY : Deutsche Bank Is Said to Name Huque CEO of U.S. Securities Unit
- EDP PL : EDP First Quarter Net Income 1.2% Below Estimates
- EDPR PL : EDPR Signs PPA to Sell Energy Produced by Broadlands Wind Farm
- FER SM : Ferrovial First Quarter Revenue 3.9% Below Estimates
- FCT IM : Fincantieri Chair Massolo May Head 5 Star-League Govt: Corriere
- HSBA LN : HSBC Bought Back 3.62M Shares at Avg 724.70 Pence Each May 10
- INW IM : Inwit First Quarter Revenue EU95.5 Mln
- MB IM : Mediobanca 3Q Profit Beats Estimates on Record-High Revenue
- MRL SM : Merlin Properties 1Q Net EU114.1m vs EU66.6m Y/y
- NRE1V FH : Nokian 1Q Headwinds Will Ease, Jefferies Upgrades to Hold
- NOVN SW : Fosun Pharma Is Said to Vie for $2 Billion Novartis Portfolio
- POLN SW : Polyphor Narrows IPO Price Range to CHF35/Shr to CHF38/Shr
- RNO FP : France Asked for Exemptions for Companies on Iran, Le Maire Says
- SGO FP : Sika, Saint-Gobain Reach Deal to End Takeover Battle
- SHI LN : SIG Vote to Reject Auditor After Warning on Profit Overstatement
- SIK SW : Sika, Saint-Gobain Reach Deal to End Takeover Battle
- STAN LN : StanChart Is Said to Market $1.5 Billion of Buyout Deals
- TKWY NA : Takeaway Offering by Holder Prices at EU46.25/Share
- TLX GY : Talanx Full Year Net Income Forecast 4.1% Below Estimates
- TPOU LN : *THIRD POINT MAY LAUNCH CO. TO RAISE MONEY IN AN IPO: REUTERS
- TKA GY : Thyssenkrupp Plans Acquisitions in Elevator Sector: WiWo
- FP FP : France Asked for Exemptions for Companies on Iran, Le Maire Says
- UBSG SW : Volatility’s Back, But UBS Urges Investors to Stick With Stocks
- UNI IM : Unipol First Quarter Combined Ratio Reported 94.1%
- US IM : UnipolSai First Quarter Combined Ratio Reported 94.3%
- ZAL GY : Zalando to Buy Back Up to EU50m for Stock Option Programs
- ZPG LN : *SILVER LAKE AGREES TO BUY ZPG FOR 490P IN CASH; ABOUT GBP2.2B

>>> Europe : Brokers Upgrades & Downgrades - 11th of May 2018

>>> Up
* Nokian Renkaat Upgraded to Hold at Jefferies; PT 31 Euros
* Sacyr Upgraded to Buy at SocGen; PT 3 Euros

>>> Down
* Applus Downgraded to Hold at Kepler Cheuvreux; PT 12.80 Euros
* Greggs Downgraded to Hold at Berenberg
* Siemens Gamesa Cut to Hold at Kepler Cheuvreux; PT 14.20 Euros
* Solutions 30 Downgraded to Hold at Berenberg
* Uniper Downgraded to Reduce at HSBC; PT 24 Euros

>>> Initiation
* Vifor Pharma Rated New Underweight at Barclays; PT 130 Francs

>>> Call

>>> US After Hours Summary: TTD +22%, IMMR +16% are higher, while SYMC


After Hours Summary: TTD +22%, IMMR +16% are higher, while SYMC -20%, SGYP -11%, FLS -8%, DBX / YELP -5%, NVDA -3% are lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: TTD +22.3%, IMMR +15.7%, MCFT +9.7% (light volume), VRAY +9.2%, GLOB +7.4%, NDLS +5.8%, FSCT +5.4%, PPC +5.4%, ASYS +4.1%, KTOS +3.7%, OMER +3%, KLIC +1.1% (says will not be filing its its 10-Q 'in a timely manner', reports prelim Q2 EPS and revs above consensus and guides Q3 revs in-line), UNIT +1%

Companies trading higher in after hours in reaction to news: XRX +2.3% (attributed to CNBC mention on Fast Money)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SYMC -20%, SGYP -11%, FLS -7.9%, FNKO -7.8%, XON -7.5%, FATE -7.3%, RDFN -6.9%, TLND -6%, DBX -4.7%, YELP -4.7%, NVDA -3.6%, TIVO -3.2%, CASA -2.9%, SENS -2.5%, HALO -2.4%, WBAI -1.5% (thinly traded),

Companies trading lower in after hours in reaction to news: PUMP -3% (commences 12 mln common stock offering by selling securityholders), PPG -2.9% (provides update on form 10-Q filing and internal investigation, has found evidence that improper accounting entries were made by certain employees at the direction of the former vice president and controller), WAGE -2.3% (files to delay 10-Q; is continuing its review of financial statements/ internal controls), MGM -1.1% (Investor Day is today; also Board authorized a new $2.0 billion share repurchase program), MDXG -1.1% (files to delay 10-Q)

Select semi/tech names are lower in after hours trade as NVIDIA (NVDA) weighs (etf SOXX -0.4%): MU -1.5%, AMD -1.2%, INTC -0.5%, NXPI -0.4%, TSM -0.4%