>>> Repsol details targets for up to EUR 3bn planned acquisitions

Repsol details targets for up to EUR 3bn planned acquisitions

Spain-based oil concern Repsol [REP:SM] expects to spend between EUR 2.5bn and EUR 3bn in acquisitions, after raising EUR 3.820bn from the sale of its stake in Gas Natural Fenosa [BME:GAS], El Economista reported. At a meeting earlier this month with analysts, Repsol gave some of the keys to future investments included in its next strategic plan, to be presented on 7 June, according to the report.
Repsol wants to make several small acquisitions totaling EUR 3bn, focusing its inorganic growth on three areas: the gas and electricity business in Spain and Peru, chemicals and oil, which represents 36% of its business. As far as electricity and gas are concerned, the oil company still plans to invest in renewables, mainly in acquiring technology rather than a large number of assets, the Spanish-language paper said.
Repsol will also divest about 20% of its exploration and production assets, replacing around 200,000 to 300,000 low-margin barrels per day with 50,000 to 100,000 higher-margin barrels per day and continuing at a pumping level of around 700,000 barrels per day, Expansion said.
The company also plans to enter the combined cycle business in order to monetize this gas, although it noted it does not intend to participate in regulated businesses

>>> Abertis' 29.9% stake in Cellnex will be sold to Edizione in absence of highe

Abertis' 29.9% stake in Cellnex will be sold to Edizione in absence of higher offer - report (translated)
17 APR 2018
Cellnex Telecom’s [BME:CLNX] 29.99% stake held by Abertis [BME:ABE], will be sold Edizione Holding, vehicle of the Benetton family, Expansion reported without citing any sources. The deadline for competing offers ended on Monday 16 April.
Atlantia [BIT:ATL] had granted a right of purchase to Edizione Holding at a price of EUR 21.50 per share, totaling EUR 1.489bn. The deal was pending whether a third party would submit a better offer, but given that no higher bid was made, Edizione will execute the agreement, the Spanish-language paper said.
Abertis is currently Cellnex's main investor with a 34% stake. Once Atlantia, ACS [BME:ACS] and Hochtief [FRA:HOT] acquire Abertis, Atlantia will acquire the 34% of Cellnex from Abertis, and sell 29.99% to Edizione, which is Atlantia’s main shareholder with a 30% stake.

>>> Incarlopsa draws interest from potential suitors amid reported talks with Ka

Incarlopsa draws interest from potential suitors amid reported talks with Kam Fung
17 APR 2018
Incarlopsa, a Spain-based meat producer, has drawn the interest from foreign suitors while Kam Fung, a Hong Kong-headquartered Chinese investment firm, is having discussions, according to a newswire report on 16 April.
Reuters cited Incarlopsa Chairman Emilio Loriente in confirming that foreign investors are interested in the company although no sale is being actively sought.
Citing a company statement, the item noted that Incarlopsa is listening to potential suitor's interest from such countries as China, the US and Russia. However, no sale process is underway, it added.
The report cited sources knowledgeable of the matter as saying that Kam Fung is having discussions over a potential takeover of a 95% stake in Incarlopsa, and the current owner, the Loriente Piqueras family, will retain the remaining stake.
The transaction could value Incarlopsa at EUR 1bn, it said. The Spanish company has debt of almost EUR 200m, according to the report. The proposed price of the deal is giving an enterprise value of 16x EBITDA to Incarlopsa, higher than the about 10x average for the industry in Europe, as reported.
Kam Fung has been reaching out to bankers for funding but certain lenders are concerned that the Spanish firm is too reliant on Mercadona, a supermarket chain in Spain, for income, the report said.
Kam Fung is holding talks over forming a consortium with China Huarong Asset Management although the Chinese firm could refrain from entering the fray amid the Chinese government's tightening scrutiny on outbound deals, as reported.

>>> What to look at today - 17th of April 25018

Stocks in Asia fluctuated as investors parsed a mixed set of economic numbers out of China and sought fresh leads after weeks of volatility sparked by trade frictions and geopolitical conflict. The dollar traded at the lowest in two months against most peers. Equity benchmarks fell in Japan and rose in Australia, while they swung from gains to losses in Hong Kong and China as S&P 500 Index futures climbed. The dollar weakened as U.S. President Donald Trump accused Russia and China of devaluing their currencies, contradicting an assessment from the Treasury Department. Treasury yields ticked higher and West Texas crude futures traded below $67 a barrel. US After Horus : CE +6.2%, NFLX +5.3% following earnings/guidance, PUMP +6.3% on S&P SmallCap 600 addition news

Nikkei +0.11% Hang Seng -0.30% CSI -0.86% Shanghai -0.77% Shenzen -1.66%

Eur$ 1.2390 CNH 6.2732 CNY 6.2805 JPY 107.01 GBP 1.4347 CHF 0.96 RUB 61.2584

S&P +0.40% EuroStoxx +0.33% FTSE +0.05% Dax +0.51% SMI +0.17%



Macro :
- Draghi’s High-Class Problem Rears Its Head as ECB Views Exit

Keep an eye on :
- AF FP : Air France-KLM Proposes 2% Salary Hike 2018, 5% 2019-2021
- AZN LN : AstraZeneca Says Data Sets Show Survival of Imfinzi Combination
- BSLN SW : Basilea Licenses ArQule’s Oncology Drug Candidate Derazantinib
- BAYN GY : Temasek to Buy $3.7 Billion Bayer Shares as Monsanto Deal Nears
- CLNX SM : Benetton’s Edizione to Buy 29.9% of Cellnex From Atlantia
- CO FP : Casino 1Q Sales Meet Analyst Estimates
- COMH SS : Com Hem First Quarter Adjusted Ebitda Beats Highest Estimate
- DRw3 GY : Draegerwerk First Quarter Net Sales EU496 Mln
- ELUXB SS : Electrolux Sets Emissions Reduction Target Commitments
- INGA NA : ING Belgium Pays EU720M Dividend to Dutch Parent Firm: L’Echo
- MMB FP : Lagardere to Sell East Europe Radio Assets for EU73M: Echos
- LGEN LN : Legal & General IM to Target Companies Over Gender Balance: FT
- MT IM : Maire Tecnimont Says Bond Offer to Free Up Resources for Growth
- MAR PL : Martifer Says Main Shareholders Won’t Have Executive Roles
- MONC IM : Moncler Revived Itself With $1,000 Ski Parkas. What’s Next?
- NOD NO : Nordic Semiconductor 1Q Revenue Beats Highest Est.
- NHY NO : Hydro Says Norway Output Cuts May Be Necessary Due to Alunorte
- RIO LN : Rio, South32, Alumina to Benefit From Aluminum Sanctions: UBS
- ROG SW : Roche’s Hemlibra Gets FDA Breakthrough Therapy Designation
- ROTH FP : Incoming Rothschild Chairman Plans to Expand Bank in U.S.: FT
- SAN SM : Santander’s Botin Calls for Review of EU’s PSD2, FT Reports
- SIK SW : Sika First Quarter Sales Meet Estimates
- SPA4 IM : Space 4 to Buy 80% of Guala Closures, Incorporate Business
- SAZ GY : STADA Reshuffles Management, Appoints Pagan to Executive Board
- TIT IM : Centennial Arbitrage to Support Elliott in Telecom Italia Battle
- TIT IM : Telecom Italia Board Is Said to Meet to Review Watchdog Requests
- TEF SM : Telefonica de Argentina Said to Hire BofA, MS for Up to $1B IPO
- TOM2 NA : TomTom Full Year Revenue Forecast Misses Lowest Estimate
- UBI FP : Bank Has Option to Buy 3.6% Ubisoft Stake From Guillemot Bros.
- VACN SW : VAT First Quarter Net Sales CHF197.8 Mln
- DG FP : Vinci’s Eurovia Unit in Pact to Buy Quebec Public Works Co. TNT
- WPP LN : WPP Outlook to Negative From Stable by Moody’s on CEO Departure

>>> Europe : Brokers Upgrades & Downgrades - 17th of April 2018

>>> Up
* Husqvarna Upgraded to Buy at Kepler Cheuvreux; PT 88 Kronor
* J. Martins Upgraded to Hold at HSBC; Price Target 14 Euros
* Melia Hotels Upgraded to Outperform at BBVA; PT 13.11 Euros
* Telia Upgraded to Overweight at JPMorgan; PT 43 Kronor

>>> Down
* Altarea Downgraded to Hold at SocGen; PT 231 Euros
* GKN Downgraded to Market Perform at Raymond James
* Austrian Post Cut to Neutral at MainFirst; Price Target 42 Euros
* Austrian Post Downgraded to Sector Perform at RBC; PT 41 Euros
* Statoil Cut to Hold at SEB Equities; Price Target 205 Kroner
* Telenor Downgraded to Underweight at JPMorgan; PT 163 Kroner

>>> Initiation
* Notorious Pictures Rated New Outperform at Intermonte

>>> Call

>>> US After Hours Summary: CE +6.2%, NFLX +5.3% following earnings/gu


After Hours Summary: CE +6.2%, NFLX +5.3% following earnings/guidance, PUMP +6.3% on S&P SmallCap 600 addition news

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CE +6.2%, NFLX +5.3%

Companies trading higher in after hours in reaction to news: PUMP +6.3% (to join S&P SmallCap 600), ROKU +5.2% (ESPN+ direct-to-consumer subscription streaming service now available on Roku devices; Point72 Asset Management disclosed 5.1% passive stake), JILL +3.5% (Director disclosed purchase of 100k shares valued at ~$500K), IIN +2% (light volume; initiated with Buy and $35 tgt at Stifel), PGR +1.9% (ahead of earnings), CRSP +1.6% (presents 'positive' data on allogeneic CRISPR-based CAR-T cell therapies), LULU +1.1% (appoints Patrick Guido as Chief Financial Officer, effective April 30, 2018), MNK +0.6% (repays $300 mln of unsecured, fixed-rate notes maturing April 15, 2018 with cash on hand), BSX +0.6% (Boston Scientific successfully opposed Edwards Lifesciences' European patent resulting in a revocation of the patent), FIVE +0.6% (to join S&P MidCap 400), KMX +0.5% (initiated with Buy rating at Guggenheim), FB +0.3% (edging slightly higher on reports that Blackrock fund increased stake)

After Hours Losers:

Companies trading lower in after hours in reaction to news: BLCM -7.9% (commenced underwritten public offering of 7 mln shares of common stock), NWL -1% (ongoing proxy battle discussed on MadMoney), APLS -0.7% (light volume; commences 5 mln share common stock offering)

>>> US Close Dow +0.87% S&P +0.81% Nasdaq +0.70% Russell +0.87%


Closing Market Summary: Sigh of Relief

Investors breathed a sigh of relief on Monday, pushing stocks solidly higher, after a U.S.-led strike on Syria over the weekend turned out to be less dramatic than many had feared.

The S&P 500 finished higher by 0.8% at 2677.84 after getting rejected at its 50-day moving average (2687). The Dow Jones Industrial Average and the Nasdaq Composite also finished a step below their 50-day moving averages, adding 0.9% and 0.7%, respectively.

U.S., U.K., and French forces carried out a much-anticipated missile attack against the Syrian government late Friday, targeting three sites associated with the production of chemical weapons following a suspected poison gas attack against the rebel-held town of Douma on April 7. Russian President Vladimir Putin -- who supports the Syrian government -- condemned the attack, saying additional strikes could invite chaos in global affairs, but made no mention of a military response to this particular incident -- giving the impression that it's now in the rear-view mirror.

That realization proved to be a positive for the equity market, but didn't bode so well for crude oil, which surged more than 8.0% last week on the bet that heightened tensions in the oil-rich Middle East would lead to a slowdown in production; West Texas Intermediate crude futures slid 1.6% to $66.18 per barrel. However, the energy sector, which typically moves in tandem with the price of crude oil, rallied 1.0%.

All 11 S&P sectors finished Monday in positive territory, with gains ranging from 0.4% to 1.5%. Lightly-weighted groups populated the top and bottom of the sector standings, with telecom services (+1.5%), utilities (+1.4%), and materials (+1.4%) closing at the top, and real estate (+0.4%) closing at the bottom. The heavily-weighted financial space (+0.5%) was the second-worst performer.

In corporate news, drug retailers CVS Health (CVS 66.10, +2.67) and Walgreens Boot Alliance (WBA 66.22, +2.40) rallied 4.2% and 3.8%, respectively, following a CNBC report that internet retail giant Amazon (AMZN 1441.50, +10.71) has shelved plans to sell and distribute pharmaceutical products to hospitals. Separately, Merck (MRK 58.65, +1.48) and Bristol-Myers (BMY 54.08, -4.57) both reported better-than-expected clinical trial results for their respective cancer treatments, but Merck surpassed expectations even more so than Bristol. Merck shares jumped 2.6%, while Bristol shares tumbled 7.8%.

On the earnings front, Bank of America (BAC 29.93, +0.13) struggled early after reporting above-consensus first quarter earnings ahead of Monday's opening bell, but eventually finished up 0.4%. Financial peer Charles Schwab (SCHW 53.08, +2.04) soared 4.0% after also beating bottom-line estimates for Q1. Moving to transports, JB Hunt (JBHT 119.75, +6.98) jumped 6.2% after beating both earnings and revenues estimates for the first quarter, helping to fuel a broad transport rally; the Dow Jones Transportation Average finished Monday higher by 2.3%.

In the bond market, U.S. Treasuries ended Monday slightly lower, which was a minor victory in light of the larger losses posted overnight. The 2-yr yield flirted with 2.40% before closing flat at 2.37%, while the benchmark 10-yr yield flirted with 2.87%, before closing with a one basis point gain at 2.83%.

Reviewing Monday's economic data, which included Retail Sales for March, the Empire State Manufacturing Survey for April, Business Inventories for February, and the NAHB Housing Market Index for April:

  • March retail sales increased 0.6% (consensus +0.4%). The prior month's reading was left unrevised at -0.1%. Excluding autos, retail sales increased 0.2%, as expected. The prior month's increased was left unrevised at 0.2%.
    • The key takeaway from the report is that March stopped a streak of three consecutive monthly declines in retail sales, although it also demonstrates that consumers continue to show some restraint in discretionary spending.
  • The Empire Manufacturing Survey for April declined to 15.8 (consensus 20.0) from the prior month's unrevised reading of 22.5.
  • Business Inventories increased 0.6% in February (consensus +0.6%). The January reading was left unrevised at +0.6%.
    • The key takeaway from the report is that inventory growth outpaced sales growth, as inventories increased for manufacturers (+0.3%), retailers (+0.4%), and merchant wholesalers (+1.0%).
  • The NAHB Housing Market Index for April decreased to 69 (consensus 70) from an unrevised reading of 70 in March.

On Tuesday, investors will receive March Housing Starts (consensus 1268K) and Building Permits (consensus 1315K) at 8:30 AM ET and March Industrial Production (consensus +0.3%) and Capacity Utilization (consensus 77.8%) at 9:15 AM ET.

  • Nasdaq Composite: +3.7% YTD
  • Russell 2000: +1.8% YTD
  • S&P 500: +0.2% YTD
  • Dow Jones Industrial Average: -0.6% YTD