>>> Europe Pre-Market indications

ML
* MLP IPO - Day 1 today - Ticker: MPARK TI. IPO price TRY19, size $370mn.......
KERING - Solid rev, v strong EBIT margin & FCF. All luxury brands beat (391)+3%
METRO - EBITDA 5.4% ahead of cons and group reiterates its FY guidance(17.7)+2%
UBISOFT - CEO positive comments; AC Origins still selling extremely well(65)+2%
RANDSTAD - Revs 1% ahead of cons with EBITDA a 4% beat. 69c special div (56)+2%
MINERS - Copper +1.5%, Iron ore fut +0.75% and BHP OZ +1.15%, RIO OZ +1.12%.+1%
MICHELIN - Solid; ops profit €1,340m (12.4% margin) inline with cons (126.5)+1%
REPSOL - CVC is said to near deal to buy Repsol's stake in Gas Natural(14.1)u/c
AURUBIS - FY18 rev +1.4% v cons, op EBIT EUR82m is 25% of FY bbg cons (80)..u/c
B.LAND - Preleases 161k sq ft at 100 Liverpool St on a 20 year lease (635.6)u/c
GAS NAT - CVC is said to near deal to buy Repsol's stake in Gas Nat (18.5)..u/c
TELIA - CEO says that he sees no prerequisites to buy TDC; DI reports (37.2)u/c
TUI - EBITDA -€25.9m compared to BAML -€52.9m, benefited by RIU sale (1595).u/c
TELENET - Solid EBITDA but FY18 guidance u/whelming & not releveraging(60)-2-3%
CS
Aurubis -2% 1Q sales 2.87bln cons 2.83bln, guidance underwhelming
Fraport M/P traffic stats - Passenger count +7.6%, Air freight
+0.5%
Kering +2% Sales strong, op margin beat, revs ahead
Metro +0.5% Numbers inline, confirms guidance
Michelin M/P Sales/earnings inline with expectations, FCF better
Miners +0.5% Copper +1.55%, Brent -0.30%, Iron Ore +0.80%, China
+1.20%
Pendragon +2-3% FY pretax £60.4m vs cons £59.8m, outlook inline
Randstad +3-5% EBITDA 4% beat, growth ahead, special dividend
Scout24 +1% Revs in line, EBITDA 1% ahead
Telenet -3% EBITDA 3% beat vs cons, no exceptional distribition
Thule +1-2% 4Q net sales SEK1.01b vs cons SEK1.03b, div ahead
Tui -1% Summer bookings solid, guidance inline
Vontobel +1% FY17 AuM CHf165.3n (cons 158.4), net profit 4.5% ahead
X-Fab -2% Q4 sales $154m vs. CS at $150m, guidance underwhleming
RBC PRE-MKT INDICATIONS
*ADIDAS: 0% BRIDGEWATER discloses $384M short position.
*BLT: 0% expects $1.8B income tax expense due to US reforms.
*ENGIE: -1% LES ECHOS: subsidiary Cofely seen investigated for corruption.
*FAROE PETRO: 0% operational update in line, strong into numbers.
*FHZN: 0% January passengers +2.7%, solid numbers.
*FLUGHAFEN WIEN: 0% Vienna airport passengers +1.9% for Jan, cargo very strong.
*FRAPORT: 0% January numbers broadly in line, passengers +1%.
*GAS NAT: 0% EXPANSION: KKR, CVC to buy REP's 20% GAS stake.
*KERING: +3% strong numbers across the board, GUCCI +43% v +40% estimates.
*METRO: +1% in line with pre-announced numbers, '17-'18 guidance confirmed.
*MICHELIN: +1% FY'17 numbers solid, confirms '20 objectives.
*RANDSTAD: +2% Q4'17 EBITA ahead, organic growth better, robust numbers.
*SCOUT24: +1% preliminary results in line, EBITDA touch ahead.
*TELENET: -2% Q4'17 results in line, but capex concerns & '18 guid conservative.
*TUI: +1% Q1'18 loses less than expected, customer numbers better.
*UBISOFT: +1% Q3'17 numbers in line, FY'17-19 targets confirmed.

>>> What to look at today - 13th of February 2018


The yen climbed to a 15-month high as traders probed Japanese officials’ tolerance for appreciation, hurting the nation’s stocks in what was otherwise a mixed session for Asian equities Wednesday ahead of a key U.S. inflation report.
Treasuries also advanced, along with gold, giving the moves the flavor of a shift to havens. Japan’s Topix index fell to a four-month low. Futures on the S&P 500 Index rose as did the MSCI Asia Pacific Index of stocks. Shares rose in Hong Kong and Seoul, while they fluctuated in Shanghai before a week-long Lunar New Year holiday. Volatility lingered, albeit down from the extremely elevated levels reached last week.

Nikkei -0.43% Hang Seng +1.62% CSI +0.79% Shanghai +0.50% Shenzen +0.39%

Eur$ 1.2372 CNH 6.3281 CNY 6.3398 JPY 107.22 GBP 1.3899 CHF 0.9329 RUB 57.5733

S&P +0.23% EuroStoxx +0.48% FTSE +0.48% Dax +0.58% SMI +0.41%

Macro :
- Goldman’s Buyback Desk Was Deluged With Orders as Stocks Plunged
- Kemper to Buy Infinity for $1.4 Billion in High-Risk-Driver Bet
- Fed’s Mester Said to Be Among Contenders for Fed Vice Chair: WSJ

Keep an eye :
- AIR FP : BI Primer: Airbus Profit, Margin Rises as A320 Engine Is Sorted
- ASRL NA : ASR Nederland Supervisory Board Adjusts Pay of Executive Board
- GBF GY : Bilfinger 2017 Revenue Beats Estimates, Orders Flat
- BHI US : GE Should Buy Remaining Baker Hughes Stake, Melius Research Says
- CLN SW : Clariant Full Year Adjusted Ebitda 1.7% Above Estimates
- ACA FP : Credit Agricole FY Revenue Rises 11%, FY Net Climbs 3.1%
- CSGN SW : Credit Suisse Gives Cautious Outlook After ‘Strong Start’
- BN FP : Danone to Sell About 195b Yen Worth of Shares in Japan’s Yakult
- DSM NA : DSM 4Q Adjusted Ebitda Beats Highest Estimate
- HNA : HNA Group Airlines Falling Behind on Aircastle Lease Payments
- KUD SW : Kudelski Full Year Dividend Per Share CHF0.10
- LEON SW : Leonteq Names Founding Partner Ruflin CEO as of May 1
- MHG NO : Marine Harvest Fourth Quarter Net Income Misses Lowest Estimate
- NFLX US : Netflix Is Said to Hire Fox’s Ryan Murphy For Up to $300m: NYT
- NFLX US : Baidu Plans U.S. IPO of Netflix-Like Unit as Sales Top Estimates
- RXL FP : Rexel 2017 Recurring Net EU291.2M Vs Est. EU291M; Div. 42c/Shr
- STCBV FH : Stockmann Fourth Quarter Adjusted Ebit Misses Estimates
- TEF SM : Telefonica Is Said to Seek Refinancing EU5B Loans: Expansion
- TKA GY : Thyssenkrupp 1Q Profit Rises 52%, Beating Estimates

>>> Europe : Brokers Upgrades & DOwngrades - 13th of February 2018

>>> Up
* Aviva Upgraded to Buy at Goldman; PT 5.90 Pounds
* DIA Upgraded to Buy at Natixis
* EDP Raised to Neutral at Credit Suisse; Price Target 2.70 Euros
* General Mills Upgraded to Buy at Jefferies
* Handelsbanken Upgraded to Hold at DNB Markets; PT 115 Kronor
* Intesa Upgraded to Add at AlphaValue
* Santander Upgraded to Buy at Oddo BHF; PT 6.90 Euros
* SEB Upgraded to Buy at DNB Markets; PT 110 Kronor
* Seattle Genetics Upgraded to Overweight at JPMorgan; PT $66
* Swedbank Upgraded to Hold at DNB Markets; PT 200 Kronor
* va-Q-tec Upgraded to Buy at Berenberg
* Wihlborgs Upgraded to Buy at Kepler Cheuvreux; PT 218 Kronor

>>> Down
* A.G. Barr Downgraded to Underweight at JPMorgan; PT 5.70 Pounds
* Kesko Downgraded to Hold at Kepler Cheuvreux; PT 50 Euros
* TDC Downgraded to Neutral at Goldman; PT 52 Kroner

>>> Initiation
* Eddie Stobart Logistics Rated New Buy at Berenberg
* Wincanton Rated New Hold at Berenberg; PT 2.10 Pounds

>>> Call
>> Stock
* Prudential Added to Conviction List, Aviva Up to Buy at Goldman

>>> US Close Dow0.16% S&P +0.26% Nasdaq +0.45% Russell 0.27%


Closing Market Summary: Winning Streak Continues Ahead of CPI Release

U.S. equities overcame early weakness on Tuesday to push the major indices higher for the third session in a row.

The Nasdaq Composite climbed 0.5%, the S&P 500 rose 0.3%, and the Dow Jones Industrial Average added 0.2%, settling near their session highs. The three indices held losses of around 0.7% apiece at the opening bell, but slowly began moving back towards their flat lines, hitting positive territory in the early afternoon.

Nine of eleven S&P 500 sectors settled in positive territory, with financials (+0.5%), consumer discretionary (+0.5%), and real estate (+0.6%) being the top performers. Energy (-0.5%) and materials (-0.3%) were the two declining sectors, and health care (+0.1%) also showed relative weakness.

Within the consumer discretionary space, Under Armour (UAA 16.70, +2.47) rallied 17.4%, hitting its best level since late October, after reporting better-than-expected sales for the fourth quarter. Internet retail giant Amazon (AMZN 1414.51, +28.28) also helped the consumer discretionary sector, climbing 2.0%.

Meanwhile, in the health care space, AmerisourceBergen (ABC 97.77, +8.32) spiked 9.3% following a Wall Street Journal report that Walgreens Boot Alliance (WBA 68.29, -0.17) has reached out to the drug distributor about a potential takeover.

In the bond market, Treasuries finished Tuesday mostly higher, although the 2-yr note declined. The benchmark 10-yr yield slipped three basis points to 2.83% after settling Monday at a four-year high, while the 2-yr yield rose two basis points to 2.09%. Yields move inversely to prices.

Elsewhere, West Texas Intermediate crude futures slipped 0.2% to $59.19 per barrel, the CBOE Volatility Index (VIX) declined around one point, or 2.3%, to 25.02, and the U.S. dollar tumbled 0.5% against the euro (1.2357) and 0.8% against the Japanese yen (107.82).

Tuesday's lone economic report--the NFIB Small Business Optimism Index for January--rose to 106.9 from 104.9 in December.

On Wednesday, investors will receive the weekly MBA Mortgage Applications Index at 7:00 AM ET, the Consumer Price Index (Briefing.com consensus +0.4%), the core Consumer Price Index (Briefing.com consensus +0.2%), and Retail Sales (Briefing.com consensus +0.2%) for January at 8:30 AM ET, and Business Inventories for December (Briefing.com consensus +0.3%) at 10:00 AM ET.

Emphasis will be placed on the core Consumer Price Index as a hotter-than-expected reading could prompt inflation/rate hike concerns.

  • Nasdaq Composite: +1.6% YTD
  • Dow Jones Industrial Average: -0.3% YTD
  • S&P 500: -0.4% YTD
  • Russell 2000: -2.7% YTD

>>> US After Hours Summary: FOSL +81%, TLND +18%, CCS +10%, TWLO +6%,


After Hours Summary: FOSL +81%, TLND +18%, CCS +10%, TWLO +6%, BIDU +5% higher, while OXY / MET -2% lower following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: FOSL +81.4%, TLND +17.6%, CCS +10.1%, CARB +7.8% (also announces agreement to acquire Mozy Inc from subsidiary of Dell Technologies for $145.8 mln in cash), TWLO +6.3%, BIDU +4.9%, LPTH +4.8%, FANG +3.5% (also initiates annual cash dividend of $0.50 per common share to be payable quarterly beginning with Q1 2018), WU +3%, IOSP +2.9%, BXMT +1.1%, HUBS +1%,

Companies trading higher in after hours in reaction to news: ZSAN +14.8% (rebounding from today's 24% decline/reverse stock split), CMG +11.5% (appoints YUM's Taco Bell exec Brian Niccol as CEO effective March 5), TNDM +11.1% (closing of its previously announced underwritten public offering - several insiders including President disclosed the purchase of shares from the offering), IPCC +7% (Infinity Property & Casualty being acquired by Kemper (KMPR) for $1.4 bln in cash and stock; both companies reported earnings), AKAO +5.5% (after TTPH Phase 3 trial failed to meet the co-primary efficacy endpoints), PTEN +5.4% (light volume - still checking; presented this morning at Credit Suisse conference), ZN +4.7% (after closing near highs -- up 70% on the day), GNMX +3.5% (thinly traded -- Adage increased passive stake to 9.91% from 3.5%, Baker Bros slightly decreases passive stake), GCO +1.9% (Genesco to explore the sale of its Lids Sports Group business), PSX +1.6% (Phillips 66 agreed to repurchase 35 mln shares from Berkshire subsidiary for $93.725 per share - Buffett says transaction was solely motivated by desire to eliminate regulatory requirements for 10%+ ownership), GBT +1.4% (ticking higher; initiated with Buy at Janney after the close), ENDP +1.3% (initiated after the close with a Buy and $10 tgt at B. Riley FBR), IIVI +1.2% (initiated after the close with Overweight rating at Piper Jaffray), EXEL +0.8% (light volume-announces results from Phase 2 investigator-sponsored trial of Cabozantinib in the First-Line treatment of Metastatic Radioiodine-Refractory differentiated Thyroid Carcinoma), YY +0.3% (following BIDU results)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ECOM -6.4%, TRUP -5.7%, OHI -4.9%, NBIX -4.1%, QUOT -4.1%, SINO -3% (thinly traded), OXY -2.7%, CSOD -2.6%, MET -2.1%

Companies trading lower in after hours in reaction to news: TTPH -58.6% (announces efficacy and safety of once-daily intravenous (IV) eravacycline compared to ertapenem for the treatment of patients with complicated urinary tract infections (cUTI) did not achieve statistical non-inferiority of eravacycline to ertapenem), NMM -13.6% (announces public offering of up to $35 mln in common units), AVDL -10.9% (announces its wholly-owned subsidiary, Avadel Finance Cayman Limited, intends to offer, $125 mln principal amount of exchangeable senior notes due 2023), PIRS -10.6% (commences common stock offering), PDCO -2.9% (continued weakness), RARX -2.1% (announces $50 mln proposed public offering of common stock)

>>> Asian Update

Asia Market Update: Mixed markets in last day of trade before Lunar New Year; dollar weakness across the region


***Headlines/Economic Data***
General Trend: Asian equities trade mixed
- Nikkei hits 4-month low
- Shanghai Composite moves between gains and losses in last trading session ahead of Chinese Lunar New Year break (Chinese equity markets to close from Thursday Feb 15th to Wed Feb 21st)
- Japan Q4 prelim GDP below ests amid decline in housing investment and weaker business spending
- US dollar (USD) trades generally weaker ahead of US CPI and Retail Sales data
- USD/JPY hits lowest since Nov 2016
- Kiwi (NZD) rises after Q1 inflation expectations survey
- Aussie (AUD) gains before Thursday’s release of Jan Employment data
- Australia Feb Westpac Consumer Confidence index eases from the 4-year high hit in Jan

Japan
-Nikkei 225 opened flat; closed -0.4%
- TOPIX Info& Communications Index -2% (Softbank declines over 1.5%), Electric Appliances -1.6%, Iron & Steel -1.1%, Real Estate -1%
- McDonald’s Japan [2702.JP] declines over 1% after guiding FY net profit lower y/y
- Shipping firm Nippon Yusen [9101.JP] declines amid probe into Chinese subsidiary
- Toshiba [6502.JP] gains amid release of earnings report
- (JP) JAPAN Q4 PRELIM GDP Q/Q: 0.1% V 0.2%E (8th consecutive quarter of growth); ANNUALIZED GDP Q/Q: 0.5%V 1.0%E; NOMINAL GDP Q/Q: 0.0% V 0.4%E
- (JP) Japan Economy Min Motegi comments after Q4 GDP data: Growth was supported by private sector demand; consumer spending improving due to wage growth; Economy is no longer in deflation
-(JP) Japan Chief Cabinet Sec Suga: Japan's economic fundamentals are firm; no comment on FX levels
-(JP) Japan Jan Tokyo Condominium Sales Y/Y: +39.7% v -7.5% prior
-Toshiba, 6502.JP Reports 9M Net ¥27.0B v loss ¥532.5B y/y; Op ¥49.6B v loss ¥576.3B y/y; Rev ¥2.80T v ¥3.85T y/y; Raises FY17/18 Net forecast and cuts view for Op and Rev (cites decision to move chip business to discontinued operations)

Korea
-Kospi opened +0.7%
- Samsung Electronics gains over 2%
- Lotte Shopping [023530.KR] declines by over 1%: Lotte Chairman Shin Dong-Bin found guilty of bribery charge, sentenced to 2 years and 6 months in jail
- (KR) South Korea office of President: Will continue to firmly act against unfair acts by institutions that handle cryptocurrency; cracking down on illegal acts regarding virtual coin trade is rightful and responsibility of Govt
-(KR) IMF: South Korea monetary policy should remain accommodative, fiscal policy should become 'much more' expansionary - Article IV Consultation
- (KR) South Korea 81 conglomerates combined reports FY17 Op profit +47% y/y - Korean press

China/Hong Kong
-Hang Seng opened +0.6%, Shanghai Composite +0.1%
- Hang Seng Materials Index +1.4%, Financials +1%, Info Tech +0.9%, Property/Construction +0.6%;Telecom -0.5%
- Shanghai Property Index declines over 0.5%
- BAIC Motor [1958.HK]: Declines over 2% following profit warning
- (CN) China may sell ~CNY4T in local govt bonds this year v CNY4.4T in 2017 - China News
- (CN) China PBoC: Skips Open Market Operation(OMO) for the 16th straight session
- USD/CNY (CN) PBOC SETS YUAN REFERENCE RATE AT 6.3428 V 6.3247 PRIOR
- HNA, 521.HK HNA Group: Group executives purchased offshore US dollar (USD) denominated bonds; is in 'very healthy'financial position
-(CN) China Jan Foreign Direct Investment (FDI) CNY80.4B, Y/Y: +0.3% v -9.2%prior
-Note:This is the last day of trade before Lunar New year break

Australia/New Zealand
-ASX 200 opened flat; closed -0.3%
- ASX 200 Consumer Discretionary Index -1%, Financials-0.7% , REIT -0.6%
- (AU) Group of Australia dairy farmers is pushing to end the single processing company system where farmers are locked into one processor every year and move closer to a best-price system - Australian
-Insurance Australia (+2.2%) IAG.AU Reports H1 (A$) Net 551M v507Me; Gross written premium 5.83B v 5.80B y/y
-Fletcher Building (-13%) FBU.NZ Chairman Norris to step down no later than AGM; additional provisions of NZ$486M for B&I for total of NZ$660M in FY18
-Woodside Petroleum, WPL.AU To acquire Exxon's stake in Scarborough and 50% stake in WA-1-R for $444M and contingent payment of $300M ;Announces A$2.5B rights offering priced at A$27/shr
-Domino's Pizza, (-7%) DMP.AU Reports H1 (A$) Net 62.9M v 70Me; EBITDA 122.4m v 133Me; Rev 567.6M v 583Me
- Biotherapies firm CSL Limited [CSL.AU] rises over 5% on better than expected H1 results
-(NZ)New Zealand Jan Food Prices m/m: +1.2% v -0.8% prior (first gain in four months)
-(AU) Australia Feb Westpac Consumer Confidence Index: 102.7 v 105.1 prior; M/M:-2.3% v 1.8% prior
-(AU) Australia sells A$600M v A$600M indicated in 2.25% May 2028 bonds, avg yield 2.8612%, bid to cover 3.66x
-(NZ) NEW ZEALAND Q1 INFLATION EXPECTATION SURVEY: 2-YEAR: 2.1% V 2.0% PRIOR;1-YEAR: 1.86% V 1.87% PRIOR
Looking Ahead: Australia Jan Employment Data due on Thursday


Other Asia
- India’s Punjab National Bank [PNBK.IN] declines over 4% after detecting ~$1.8B in fraudulent transactions
- (MA) Malaysia Q4 GDP Q/Q: 0.9% v 1.8% prior; Y/Y: 5.9% v 5.8%e
- (SG) Singapore Q4 Final GDP Q/Q: 2.1% v 2.0%e; Y/Y: 3.6% v 2.9%e; 2017 GDP: 3.6% v 3.5% prior
- (SG) Monetary Authority of Singapore (MAS):Monetary policy stance remains unchanged; has not revised core or headline CPI forecasts since Oct

North America
- US equity markets closed higher: Dow +0.2%, S&P500+0.3%, Nasdaq +0.5%, Russell 2000 +0.3%
- S&P 500 Real Estate Sector +0.7%, Consumer Discretionary+0.5%
- (US) Fed Chair Powell: Fed will remain alert to any financial stability risks
- (US) Trump administration reportedly considering Cleveland Fed Pres Loretta Mester (voter, hawk) for Fed board Vice Chair position - press
- (US) Pres Trump: reviewing all options over Sec 232 trade probe on steel and aluminum; Looking at tariffs and/or quotas on steel and aluminum imports
- (US) Weekly API Oil Inventories: Crude: +3.9M v -1.1M prior
- (US) According to an individual who submitted a letter anonymously to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) some of the most popular measures of volatility are being manipulated by fake quotes - financial press
Looking Ahead: US Jan CPI and Retail Sales due to be released on Wed, along with the Weekly DoE Crude Oil Inventories

Europe
- (DE) Germany SPD Leader Schulz steps down as party chairman; Andrea Nahles nominated as SDP chair by executive board;; Schedules SPD special party convention for April 22nd- press
- (NL) Netherlands PM Rutte said to survive no-confidence vote after Foreign Minister stepped down
Looking Ahead: Germany and Euro Zone prelim Q4 GDP data due to be released


***Levels as of 01:00ET***
- Nikkei225 -0.4%, Hang Seng +1.2%; Shanghai Composite +0.4%; ASX200 -0.3%, Kospi +0.9%
- Equity Futures: S&P500 +0.2%; Nasdaq100 +0.1%,Dax +0.0%; FTSE100 +0.1%
- EUR 1.2392-1.2347; JPY107.90-106.84; AUD 0.7889-0.7852;NZD 0.7335-0.7271
- Apr Gold +0.5% at $1,337/oz; Mar Crude Oil -0.1% at $59.17/brl; Mar Copper +0.2% at $3.17/lb