>>> Elliot Presentation on TIM : https://www.transformingtim.com/

https://www.transformingtim.com/

Telecom Italia (TIM) is uniquely positioned in the Italian market and operates an outstanding collection of assets that, if properly managed, should produce substantial, consistent returns for its shareholders while providing a vital, high-quality public service.However, poor stewardship under the Vivendi-controlled Board has resulted in deeply troubling corporate governance issues, a valuation discount and no clear strategic path forward.
Elliott believes a board composed of truly independent directors is the most efficient and effective way to improve governance and performance at TIM.

>>> Sallie Mae 13D filer ValueAct reports 6.4% stake

Sallie Mae 13D filer ValueAct reports 6.4% stake
09 APR 2018
Sallie Mae (Nasdaq: SLM) investor ValueAct Capital (VA) has filed a 13D reporting a stake of 6.4%.
In the Friday 13D filing VA did not disclose any immediate plans or proposals but stated it has had talks, and expects to have further talks on a wide range of topics including board composition, capital allocation, and M&A strategy.
Sallie Mae, formally SLM Corporation, has a market cap of USD 4.929bn.

Excerpt of 13D filing:
The Reporting Persons have had and anticipate having further discussions with officers and directors of the Issuer in connection with the Reporting Persons' investment in the Issuer.
The topics of these conversations will cover a range of issues, including those relating to the business of the Issuer, management, board composition (which may include whether it makes sense for a ValueAct Capital employee to be on the Issuer's board of directors), investor communications, operations, capital allocation, dividend policy, financial condition, mergers and acquisitions strategy, overall business strategy, executive compensation, and corporate governance.
The Reporting Persons may also have similar conversations with other stockholders or other interested parties, such as industry analysts, existing or potential strategic partners or competitors, investment professionals, and other investors.

Link to original source (13D filing)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
:

  • N/A.

Other news:

  • MNLO -58.8% (reports Phase 2 Trial of Serlopitant did not meet primary end-point)
  • TLGT -7.7% (files for $50 mln mixed securities shelf offering)

Analyst comments:

  • NLNK -3.6% (downgraded to Neutral at Cantor Fitzgerald)
  • BEN -0.7% (downgraded to Neutral from Buy at BofA/Merrill)
  • WLK -0.6% (downgraded to Neutral from Overweight at JP Morgan)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
:

  • HLT +2%

M&A news:

  • AVXS +82% (to be acquired by Novartis (NVS) for $218/share in cash, or approximately $8.7 bln)

Select AVXS peers/related names showing strength:

  • RGNX +24.4%, TRPX +16.3%, BOLD +12.1%, PTLA +6.8%, BLUE +5.7%, . 

Other news:

  • VSTM +17.2% (announces that the FDA accepted for filing with Priority Review its New Drug Application for its lead product candidate duvelisib)
  • PCRX +7.5% (confirms FDA approval of sNDA for EXPAREL)
  • LUK +4.4% (announces series of corporate developments)
  • DB +3.2% (Christian Sewing appointed as new Chief Executive Officer of Deutsche Bank)
  • IONS +3.2% (has licensed IONIS-AZ6-2.5-LRx to AstraZeneca (AZN) following advancement of the drug into development)
  • BPT +3% (increases Q1 dividend payment to $1.2748362/unit from $1.2301519/unit)
  • SLM +2.9% (ValueAct Capital (Bradley E. Singer) discloses 6.4% active stake; have had and anticipate having further discussions)
  • MRK +2.7% (monotherapy met primary endpoint in phase 3 keynote-042 study)
  • CDE +2.7% (announced Q1 production of 3.2 million ounces of silver and 85,383 ounces of gold)
  • BA +1.9% (Boeing American Airlines (AAL) sign major order for 47 787 Dreamliners)
  • KMI +0.9% (announced that it is suspending all non-essential activities and related spending on the Trans Mountain Expansion Project)

Analyst comments:

  • BIDU +1.6% (upgraded to Buy from Outperform at Daiwa)
  • GM +2.7% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
  • CMA +2.2% (upgraded to Outperform from Neutral at Wedbush)
  • A +1.3% (upgraded to Buy from Neutral at Goldman)
  • MMP +1.3% (upgraded to Outperform at RBC Capital Mkts)
  • ARGX +1.1% (initiated with a Buy at SunTrust)

>>> Icade 40% owner CDC keen on retaining stake

Icade 40% owner CDC keen on retaining stake – report (translated)
09 APR 2018
French state-owned financial services group Caisse des Depots et Consignations (CDC) is believed to be keen to retain Icade [EPA:ICAD], the French real estate group, in its portfolio, French daily Les Echos reported. The report cited a person in the know as saying that CDC wants to maintain its 40% stake in the business. An announcement could even be made by CDC Chief Executive Eric Lombard during the company’s annual results presentation that takes place this week, the report claimed. The report added that rumours have been doing the rounds in recent months about a potential sale of the business, either as a whole or piecemeal.
Icade existing shareholder Credit Agricole Assurances (CAA), part of French bank Credit Agricole[EPA:ACA] and owner of an 18% shareholding in Icade, confirmed it was seeking to get more seats on the board of Icade.
The original article appeared in print, page 18.

Reuters: Exclusive: As elections near, many older, educated, white voters shift

Exclusive: As elections near, many older, educated, white voters shift away from Trump's party


(Reuters) - Older, white, educated voters helped Donald Trump win the White House in 2016. Now, they are trending toward Democrats in such numbers that their ballots could tip the scales in tight congressional races from New Jersey to California, a new Reuters/Ipsos poll and a data analysis of competitive districts shows.

Nationwide, whites over the age of 60 with college degrees now favor Democrats over Republicans for Congress by a 2-point margin, according to Reuters/Ipsos opinion polling during the first three months of the year. During the same period in 2016, that same group favored Republicans for Congress by 10 percentage points. (Graphic: tmsnrt.rs/2H39Tur)

The 12-point swing is one of the largest shifts in support toward Democrats that the Reuters/Ipsos poll has measured over the past two years. If that trend continues, Republicans will struggle to keep control of the House of Representatives, and possibly the Senate, in the November elections, potentially dooming President Donald Trump’s legislative agenda.

“The real core for the Republicans is white, older white, and if they’re losing ground there, they’re going to have a tsunami,” said Larry Sabato, a University of Virginia political scientist who closely tracks political races. “If that continues to November, they’re toast.”

Asked about the swing, Republican National Committee Chairwoman Ronna McDaniel cited robust fund-raising and said the party would field strong campaigns in battleground states. “We are not taking a single vote for granted,” she said in a statement.

John Camm has been a Republican since the Nixon Administration, but the 63-year-old Tucson accountant says he will likely support a Democrat for Congress in November. He is splitting with his party over access to health insurance as well as its recent overhaul of the nation’s income tax system. He also supports gun control measures that the party has rejected.

“I’m a moderate Republican, and yet my party has run away from that,” Camm said. “So give me a moderate Democrat.”

Camm is not alone in his worries about healthcare. The number of educated older adults choosing “healthcare” in the Reuters/Ipsos poll as their top issue nearly tripled over the past two years, from 8 percent to 21 percent. The poll did not ask respondents precisely what their concerns about healthcare were.

Typically though, voters’ concerns are varied. Some fear the repealing of the Affordable Care Act, former President Barack Obama’s signature effort to offer subsidized health insurance to millions of Americans and expand healthcare to the poor. Others cite high prescription drug costs and the high cost of healthcare in general.

GRAY VOTE MAGNIFIED
The potential impact of any swing to Democrats is magnified given that older, educated adults are reliable voters. They also make up a sizeable portion of the voting population in many districts where elections are close.

How they vote could decide elections in as many as 26 competitive congressional districts where Democrats have a shot at winning a seat. A Reuters analysis of U.S. Census data shows highly educated older voters make up about 5-10 percent of the population in those areas. Democrats need to pick up 24 seats to win control of the House of Representatives.

More broadly, older white Americans, regardless of their level of education, are still more likely to vote for Republicans than Democrats, but the Republican advantage with this group has been trimmed by about 5 percentage points when comparing the first quarter of 2018 with the first quarter of 2016.

DISPROPORTIONATE POWER
Older, educated voters have even more clout in the Arizona’s 2nd Congressional District, where John Camm lives.

They make up about 10 percent of the population there, the analysis shows. Adjacent to the University of Arizona Tucson campus and including some of Arizona’s few liberal pockets, it is Arizona’s most competitive district, said Paul Bentz, an Arizona strategist and pollster who has worked on numerous Republican campaigns.

Older voters in the 2nd district - both with and without college degrees - were 40 percent of voters in the 2016 election that kept Congress in Republican hands and brought Trump to power, Arizona voter data reviewed by Reuters shows.

Bentz said the shift toward Democrats in the Tucson area could be enough to determine the outcome, but he cautioned against reading too much into the increased concern about healthcare. He said Republicans could still win voters with arguments focusing on immigration and support for the military.

Older, educated voters are also nearly 10 percent of the adult population in northern New Jersey’s hotly contested 11th Congressional District, three hotly contested Southern California districts, and highly competitive seats in Illinois, Texas and Virginia’s 10th.

RAISING ANXIETY
Nationally, Democrats plan to campaign strongly for older voters, focusing on issues such as taxes, healthcare and the economy as campaigns heat up later this year, party strategists said. Republicans, meanwhile, are touting the benefits of their tax cuts and the improved economy.

In an ad that began rolling out last week in Indiana, Priorities USA Action, the largest Democratic Party fundraising group, highlights increases to the federal deficit caused by Republican tax cuts. “Now there’s a plan to cut Medicare to pay for it,” the ad says, a line designed to raise older Americans’ anxiety about the government healthcare program for over 65s.

Priorities spokesman Josh Schwerin said it plans to spend $50 million on such ads in several states, including Arizona, Pennsylvania and Ohio.

(To read about how healthcare anxieties are looming large in a key Kentucky House race, click here )

Voters between the ages of 60 and 65 are particularly worried about healthcare, said Brigid Harrison, a political scientist at Montclair State University in New Jersey, because they are paying ever higher private health insurance premiums and are not yet eligible for Medicare.

Kenneth Johnston, 82 and a registered Republican who was shopping with his wife on a recent day at a Sprouts Farmers Market store in Green Valley, south of Tucson, said he is unhappy with his party and has mixed feelings about Trump.

But he hasn’t yet decided how he’s going to vote. “I’m worried about healthcare, but sometimes I just worry about everything,” he said. “I’m old.”

—The Reuters/Ipsos daily tracking poll provides a snapshot of public opinion by surveying more than 65,000 adults during the first three months of 2016 and 2018, including more than 15,000 people over the age of 60.

>>> US Early premarket gappers

Early premarket gappers

Gapping up:

  • AVXS +84.9%, RGNX +23%, TRPX +15.2%, BOLD +12.1%, PTLA +6.8%, BLUE +5.7%, JKS +4.3%, DB +4%, MRK +3%, CVS +2.5%, STM +2.5%, DAL +2.5%, MMM +2.4%, GM +2.2%, STX +2.2%, KMI +2%, ASML +1.9%, BIDU +1.6%, BA +1.4%, JD +1.3%, X +0.9%, CELG +0.6%

Gapping down:

  • SBGL -6.3%, YNDX -6.1%, QIWI -3.4%, ALGN -1.2%, HPE -1.2%, CTRP -0.9%, NKTR -0.9%, INFY -0.9%, GOLD -0.9%, GDX -0.8%, AKS -0.5%, HMY -0.5%, GLD -0.5%

FT : Last commodities hedge funds go off beaten track

Last commodities hedge funds go off beaten track
As profiting from fuels, crops and metals becomes harder, funds look to broader trends

Being a commodities hedge fund manager is an increasingly lonely pursuit. Specialists in fuels, crops and metals have been exiting and few new arrivals are taking their place. 

This class of traders once threw its weight around in futures markets. In the past 12 months, firms such as Jamison Capital Partners, Madava Asset Management and Astenbeck Capital Management have shut down funds, the latest in a prolonged retreat. 

Extracting profit from commodities trading has become more difficult as ample supplies calm prices, market-moving information becomes broadly available and automated traders leap ahead of participants taking a more considered view. David Mooney of Casement Capital, a veteran investor in the sector, says commodities hedge funds are undergoing “an extinction event. Just about everyone has gone out of business.”

But surviving managers see opportunities — just not where commodities hedge funds scored big in years past. 

Even as marquee names shut down, Jonathan Goldberg, who leads New York-based BBL Commodities, has launched a second fund in addition to the energy-focused one he established in 2013. This one will use commodity signals to trade equity indices and currencies.


Mr Goldberg, speaking at the FT Commodities Global Summit last month, agreed that trading had become tougher compared with when fundamental information was harder to find.

“Has it become impossible? No,” he said. BBL returned 2 per cent in 2017. 

A former trader at Goldman Sachs and Glencore, the commodities trading house, Mr Goldberg said the “speed at which the market interprets new data has definitely changed. So I think the funds that have done well and have succeeded are adapting to that new dynamic.” 

Adaptation includes trading less in the most active futures contracts and more in those with later delivery dates, or focusing more on “relative value” trades that track price differences between one contract and another, such as crude oil and diesel made from it, he said. 

Sebastian Barrack is head of commodities at Citadel, the $28bn Chicago-based hedge fund. As a multi-strategy group, Citadel is involved in a variety of markets. But the unit Mr Barrack runs would rank as one of the world’s largest commodities hedge funds if it was independent, he told the summit. 


Mr Barrack said many commodities funds maintained a bullish bias during the raw materials rally of the previous decade, flattering their results until markets turned lower. The decline in volatility across financial markets also hurt many fund managers. 

But he argued the broader availability of commodities information had empowered the hedge funds that know how to process it, giving them a window into flows once reserved for owners of commodities infrastructure and physical merchants. Citadel has “as good an opportunity today as ever before”, he said.

David Lilley, a co-founder of Red Kite, an influential London-based metals hedge fund, recently formed Drakewood Capital Management, another commodities investment group. He suggested the winnowing of commodities funds was improving the outlook for survivors. “The lack of discretionary money that’s trading those opportunities means those opportunities are available to be picked up,” he told the summit. 

Undoubtedly, fund managers seeking to retain investors are more likely to speak better of opportunities than those pulling down shutters. Assets managed by commodities hedge funds totalled $21.9bn at the end of 2017, down from a peak of $28.3bn in 2012, according to Hedge Fund Research.

“Commodity trading is tough, with no coupons, dividends, or real price appreciation over time to soften the blows. It’s becoming even tougher,” Jamison Capital’s Stephen Jamison said in a letter reported by Reuters. Mr Jamison, who did not respond to a request for comment, added in the letter that technologies such as artificial intelligence had removed short-term trading opportunities. 

The falling population of commodities hedge funds is in contrast to booming activity in futures markets, partly fuelled by money managers. CME Group, the world’s biggest exchange operator, reported record volumes of energy and metals contracts in the first quarter, while agricultural volume was up 26 per cent from a year before.

But an increasing share of the volumes is coming from computerised trading firms and investors using commodities as a proxy for broader economic trends, not commodities specialists counting barrels or bushels. In oil, the biggest commodity market, “the lesson learnt over recent years is that the herd mentality is strong and tourist traders cycling in and out of positions can make for violent price swings”, Michael Tran, an analyst at RBC Capital Markets, said in a note.

Andy Hall, a famed oil manager, charged that with the rise of algorithmic trading, “using an approach based primarily on fundamentals has therefore become increasingly challenging”, according to a letter to investors issued as he shut Astenbeck’s main fund last year.

Yet Marwan Younes, chief investment officer of $250m commodities fund Massar Capital Management, said the growth of computerised or exotic trading was less a bane than a blessing. The more these strategies push prices out of line, the better for the hedge funds that understand fair value, he said. 

“Are fundamentals more challenging to trade? In fact, it’s quite the opposite. The algorithmic community . . . actually creates opportunity for discretionary managers such as myself,” he told the FT in an interview. 

i24 : Russia, Syria accuse Israel of launching deadly airbase strike

Israel has not responded to allegations it was behind the attack


Both Russia and Syria accused Israel of carrying out deadly airstrike on an Iran-operated air base in Syria's central Homs province overnight Monday, charging that the attack was launched from Lebanese airspace.Russia's defense ministry said that two F-15 Israeli warplanes launched eight missiles at the Tayfur (or "T4") airbase from Lebanese airspace. It said that five of the eight missiles were shot down by air defense systems, but the remaining three struck "the Western part of the airbase.""Two F-15 planes of the Israeli army hit the airbase between 03:25 am and 03:53 am Moscow time (0025 GMT and 0053 GMT) with the help of eight missiles controlled remotely from Lebanese territory, without entering Syrian air space," the ministry was quoted as saying by Russian news agencies.A Syrian military source cited by the state-run SANA news agency also accused Israel of launching the attack, saying that "the Israeli attack on the T-4 airport was carried out with F-15 aircraft that fired several missiles from above Lebanese territory."The Israel Defense Forces (IDF) issued no official response to allegations that it was behind the attack that reportedly killed 14 people, among them regime-allied Iranian forces.

SANA first reported the raid as a "suspected US attack," but later withdrew all reference to America as Washington and France both denied involvement.Several pro-Assad Syrian news outlets and Lebanese outlets later indicated that Israel was likely behind the strike.Lebanon's Al-Masdar news site cited a Syrian military source as saying jets entered Syrian airspace from Lebanon’s Beqa’a Valley, a route that foreign press reports say is typically used by Israel to launch strikes in Syria.The Hezbollah-affiliated Al Mayadeen outlet, meanwhile, claimed that an Israeli surveillance aircraft was spotted over the base at the time of the strike.A military spokeswoman for Israel declined to comment on the strike which targeted the same airbase hit by Israel in February after an Iranian drone breached its airspace.After bombing Iranian units in Syria in retaliation, an Israel F-16 was shot down by Syrian anti-aircraft fire in one of the conflict's most notable escalations.
Israel then carried out what it called "large-scale" raids on Syrian air defense systems and Iranian targets, which reportedly included T-4.

A number of strikes on targets in Syria have been attributed to Israel, though it rarely confirms such raids.Israel has repeatedly warned that it will not accept its arch-foe Iran entrenching itself militarily in Syria.Construction Minister Yoav Galant, a former IDF major general and a member of Israel’s security cabinet, reiterated Israel's "red lines" in Syria though he declined to comment directly on Monday's strike.“In Syria many forces, from various bodies and coalitions, are operating. Each one says what it says and denies what it denies,” Galant told Israel Radio.“We have clear interests in Syria and we set red lines. We will not allow weapons to pass from Syria to Lebanon, and we will not allow the establishment of an Iranian base.”Monday's raid came as worldwide outrage mounted over a reported chemical weapons attack on a rebel-controlled town outside the Syrian capital.Aid groups in Douma, the last rebel-held town in the besieged Eastern Ghouta enclave near Damascus, said that patients showing signs of "respiratory distress, central cyanosis, excessive oral foaming, corneal burns, and the emission of chlorine-like odor" presented themselves after air raids on Saturday.At least 42 civilians were killed in the attack, which the United States, Turkey and the European Union said was likely carried out by the government of President Bashar Al-Assad, who is waging an 8-years-long battle to shore up his family's authoritarian rule.US President Donald Trump and his French counterpart Emmanuel Macron vowed a "strong, joint response" to the reported use of toxic gas in the rebel-held town of Douma, but both countries denied launching the assault.