>>> Supervalu beats by $0.10, misses on revs; sees FY18 EBITDA at low end of pri

Supervalu beats by $0.10, misses on revs; sees FY18 EBITDA at low end of prior range (19.63)

Reports Q3 (Nov) earnings of $0.61 per share, $0.10 better than the Capital IQ Consensus of $0.51; revenues rose 31.2% year/year to $3.94 bln vs the $4 bln Capital IQ Consensus.
EPS included a discrete tax benefit that contributed approximately $0.30 to net earnings from continuing operations per diluted share.
Completed acquisition of Associated Grocers of Florida in the fourth quarter.
"We're pleased to have completed our acquisition of AG Florida early in the fourth quarter," said President and CEO Mark Gross. "The work done in the third quarter concluded with this deal which, combined with the acquisition of Unified Grocers earlier this fiscal year, demonstrates our commitment to the strategic growth of our Wholesale business. Furthermore, we're extremely pleased with the integration work at Unified and the progress made in that market."
Fiscal 2018 Outlook
Currently expects net earnings from continuing operations to be in the range of $(20) million to $2 million which includes a non-cash charge of $35 million to $45 million anticipated to be made in the fourth quarter to reduce the carrying value of Supervalu's net deferred tax asset in accordance with the newly enacted tax reform legislation.
Sees Adjusted EBITDA, including the contribution from Unified Grocers and Associated Grocers of Florida, is expected to be in the range of $475 million to $485 million (vs. prior guidance of $475-495 mln).

>>> Lennar misses by $0.18, beats on revs

Lennar misses by $0.18, beats on revs (66.67)
  • Reports Q4 (Nov) earnings of $1.29 per share, $0.18 worse than the Capital IQ Consensus of $1.47; revenues rose 12.1% year/year to $3.79 bln vs the $3.59 bln Capital IQ Consensus.
  • Deliveries of 8,633 homes -- up 5%. New orders of 7,357 homes -- up 12%; new orders dollar value of $2.8 billion -- up 18%. Backlog of 8,935 homes -- up 17%; backlog dollar value of $3.6 billion -- up 23%.
  • Gross margins on home sales were $747.5 million, or 22.4%, in the fourth quarter of 2017, compared to $683.5 million, or 23.3%, in the fourth quarter of 2016.
  • In December 2017, the Tax Cuts and Jobs Act was enacted which will have a positive impact on our effective tax rate in 2018 and subsequent years. The tax reform bill will reduce our effective tax rate in 2018 from 34% to approximately 25%. Excluded from our 2018 effective tax rate is a one-time non-cash write-down of our deferred tax assets of approximately $70 million which will be recorded in the first quarter of 2018 as a result of our lower effective tax rate

>>> Ablynx raises sale potential for Caplacizumab; estimates market opportunity

Ablynx raises sale potential for Caplacizumab; estimates market opportunity at EUR 1.2bn per year
10 JAN 2018
Ablynx, the Belgian biopharmaceutical company, has raised its sale potential for its aTTP drug, Caplacizumab, according to Borsen. This is after Ablynx rejected a takeover offer by the Danish pharma giant Novo Nordisk as too low.
The Danish business daily reported that Ablynx's CEO, Edwin Moses, announced on Monday at JP Morgan's 2018 Healthcare Conference that the company sees an estimated market opportunity for Caplacizumab at EUR 1.2bn per year instead of its earlier estimate of EUR 800m. This an 50% increase in potential for a pharmaceutical, which analysts believe corresponds to three quarters of Ablynx's value.
The paper asked Ablynx Chairman, Bo Jesper Hansen, if there is a connection between the increase and Novo Nordisk's offer. Hansen responded that the company received and announced new data last year, and after analysing the data further, it was deemed suitable to make another announcement at JP Morgan's important biotech conference. Hansen did not wish to comment on Novo Nordisk's interest and said that Ablynx prefers to maintain its current strategic plan rather than be undervalued.
The item noted that Novo Nordisk's CFO Jesper Brandgaard said on Monday that the company will consider revising its offer if further value comes to light during negotiations.

>>> What to look at today - 10th of January 2018

Dow +0.41% S&P +0.13% Nasdaq +0.09% Russell -0.11%
US Market continue to closed Higher everyday. Two of the S&P 500's heaviest sectors--health care and financials--led the charge on Tuesday, bouncing back from a disappointing showing on Monday. the financial sector rallied 0.7% amid a steepening of the yield curve.  industrial sector finished just a step below health care and financials at the top of the sector standings with a gain of 0.6%. Boeing (BA 318.43, +8.28) jumped 2.7% to a new record high. consumer discretionary sector (+0.1%) also finished in the green, but the seven remaining groups settled in the red. The top-weighted technology space lost 0.3% with semiconductor giant Intel (INTC 43.62, -1.12) losing 2.5%. INTC shares extended early losses after Microsoft (MSFT 88.22, -0.06) said fixes for Intel chip vulnerabilities--which were reported last week--could significantly slow certain servers and personal computers. Retailers struggled in general, trimming gains from a two-month run. WTI +1.9% @ $62.92. US After Hours TNDM +23%, VOXX +22%, WDFC +5%, SNX -4%, JWN -1% following earnings/guidance, AFSI +20% on acquisition proposal, DPZ -3% on Pres/CEO departure news. Asia’s stock rally to record highs looked to take a breather on Wednesday as investors consider the impact of a jump in bond yields. The yen strengthened for a second day, with traders fixating on prospects for scaled-back debt purchases from the Bank of Japan. Reduced asset purchases by the world’s top central banks, rising commodity prices and looming U.S. debt sales all support the case for higher bond yields, in a potential test to surging equity valuations. Yields on 10-year U.S. 

Nikkei -0.26% Hang Seng +0.46% CSI +0.44% Shanghai +0.23% Shenzen -0.37%

Eur$ 1.1932 CNH 6.5287 CNY 6.5238 JPY 112.02 GBP 1.3520 CHF 0.9837 RUB 56.85 WTI$ 63.42 +0.76%

S&P -0.10% EuroStoxx -0.10% FTSE -0.02% Dax -0.16% SMI -0.03%

Macro :
- Pershing Square to Reduce Fees Related to Allergan Settlement
- HSBC Gets on Blockchain Wagon with 2018 Global Equity Strategy
- EU Warns U.K. Cos. of No Automatic Access if No Brexit Deal: FT
- SocGen Cuts Global Banks on Tax ‘Mirage,’ Underestimated Risks
- S&P 500’s Overbought Extreme Is No Bubble Sign, JPMorgan Says

Keep an eye on :
- AIR FP : Macron Says China to Finalize 184 A320 Planes Order Shortly
- ATC NA : Altice Has No Other Asset Sale Plan in Portugal Than Towers
- AAPL US : Jimmy Iovine Is Committed to Doing Whatever Apple Needs: Variety
- BAYN GY : J&J, Bayer Get $27 Million Xarelto Jury Verdict Thrown Out
- BAYN GY : Bayer Sues Alembic to Block Generic Adempas Blood Pressure Drug
- BBVA SM : BBVA: Loss on Telefonica Stake Won’t Affect Equity or CET1
- BC IM : Cucinelli: Fedone Completes Sale of Shares at EU26/Share
- CON GY : Continental May Update on Revamp Talks Within Six Months: CFO
- DTE GY : T-Mobile CFO: Dividend Payments Might Come After Several Years
- DBG FP : Derichebourg Family Offering Up to 16.4m Shares in Placing
- KODK US : *KODAK PARES 77% GAIN ON BLOCKCHAIN PLANS, NOW UP 31%
- FRU GY : Ferratum Sees Full Year Revenue EU280 Mln To EU310 Mln
- GSK LN : Glaxo May Speed Drug Programs, Cull Others to Spur Pharma Unit
- GPRO US : GoPro Sued by Investor Over Disappointing 4th Quarter Results
- BAER SW : Julius Baer Raises Stake in Kairos to 100%
- NDA SS : Nordea Ranks Lowest in Danish Customer Survey, Ritzau Says
- NAS NO : Norwegian Air to Replace Engines on 21 Dreamliners: Finansavisen
- PRU LN : Siam Commercial, Prudential Tie Up for Insurance Products
- RIO LN : Rio Tinto Is Said to Sell French Aluminum Smelter to Gupta: FT
- ROG SW : Roche Starts Tender Offer for Ignyta, Sees Deal Closing in 1H
- RYA LN : Ryanair Offers Dublin Pilots 20% Pay Rise, RTE Says
- TEL2B SS : Tele2, Com Hem to Merge; Offer Values Com Hem at SEK146/Share
- TEL2B SS : Tele2, Com Hem to Distribute Stated Ordinary 2017 Dividends
- TIT IM : Telecom Italia Is Said to Consider 7,000 Job Cuts Over 3 Years
- TLW LN : Tullow Raises 2017 Free Cash Flow Forecast by $100m to $500m

>>> Europe : Brokers Upgrades & Downgrades - 10th of January 2018

>>> Up
* Firestone Diamonds Upgraded to Outperform at RBC; PT 13 Pence
* Lufthansa Raised to Outperform at Credit Suisse; PT 36.93 Euros
* Norway Royal Salmon Raised to Buy at DNB Markets; PT 168 Kroner
* RBS Upgraded to Overweight at Morgan Stanley; PT 3.30 Pounds

>>> Down
* Barclays Cut to Equal-weight at Morgan Stanley; PT 2.15 Pounds
* Credit Suisse Downgraded to Hold at SocGen
* Dialog Semi Downgraded to Neutral at Credit Suisse; PT 29 Euros
* Drillisch Downgraded to Hold at Kepler Cheuvreux; PT 74 Euros
* Etteplan Cut to Accumulate at Inderes; Price Target 9 Euros
* Hikma Downgraded to Underperform at Jefferies; PT 8.95 Pounds
* JPMorgan Downgraded to Hold at SocGen
* Lloyds Downgraded to Equal-weight at Morgan Stanley; PT 75 Pence
* Morgan Stanley Downgraded to Hold at SocGen
* Orkla Downgraded to Hold at Kepler Cheuvreux; PT 88 Kroner
* United Internet Cut to Hold at Kepler Cheuvreux; PT 61 Euros
* Veolia Downgraded to Neutral at Goldman
* Veolia Downgraded to Hold at SocGen

>>> Initiation
* Chemring Group Rated New Buy at Berenberg
* Footasylum Rated New Buy at Liberum
* MBB Rated New Buy at Berenberg
* Retail Estates Rated New Hold at Kepler Cheuvreux; PT 74 Euros
* Suez Reinstated at SocGen With Hold; PT 15 Euros
* Ten Lifestyle Group Rated New Buy at Jefferies; PT 1.81 Pounds

>>> Call

>>> Asian Update

Asia Market Update: Bond yields around the globe steepen; yen continues to gain; PBOC resumes OMO

***Headlines/Economic Data***
General Trend: Asian equities trade mixed amid rise in global interest rates
- Asian yield curves track steepening seen in the US
- Japan 10-yr JGB yield hits highest since Oct 2017
- Korea 10-year yield hits highest intraday level in 3-years
- China sells 1 and 10-year bonds at lower than expected yields
- Australia REIT sector underperforms amid rise in interest rates
- Samsung Electronics extends losses seen post Q4 guidance
- China 2017 CPI misses target as food prices decline for first time since 2003

Japan
-Nikkei 225 opened -0.1%; closed -0.3%
-Chip related companies decline following guidance from Samsung: Tokyo Electron -1.9%, SUMCO -1.5%
-Fast Retailing -0.8%: Expected to report Q1 results on tomorrow’s session
-Automakers outperform: Honda +2%, Toyota +1.7%
-Mega banks track gains in the US financial sector: Sumitomo Mitsui +2.2%, Mitsubishi UFJ +1.7%, Mizuho +1%
-JGB (JP) Japan MoF sells ¥2.24T v ¥2.3T indicated in 0.1% (prior 0.1%) 10-yr JGB; avg yield 0.078% v 0.059% prior; bid to cover 3.74x
- (JP) Japan Financial Services Agency (FSA) said to be preparing scenarios for the ailing regional banks, including the possibility of injecting public funds and overseeing the integration of management between institutions - Nikkei

Korea
-Kospi opened +0.2%, later trades lower
-Continued weakness in chip sector: Samsung Electronics -2.8% (follow-through declines after Q4 guidance), Hynix -5%
- Hyundai Heavy (010140.KR ) +7.5%: Said to plan to cut 2,500 jobs - South Korean Press
-Financials gain amid steeper yield curve: KB Financial +1%, Woori Bank +1.7%
- 042660.KR May report Q4 Net loss due to cost increases and KRW - Korean press
- (KR) South Korea President Moon: An increase in minimum wage is meaningful reform to economy
-(KR) Moody’s comments on recent inter-Korea talks: Says the talks don’t lower the probability of a conflict for now

China/Hong Kong
-Hang Seng and Shanghai Composite opened flat
-Hang Seng Energy Index +1.5% (On Tuesday oil prices rose by over 2.5%), Financials +0.7%, Property/Construction +0.6%
-Chow Tai Fook Jewellery +2.7%: Q3 China SSS +5% y/y
-Parkson Retail Group +10% (no relevant news seen)
-Great Wall Motor: -4.5%: Dec sales -16.6% y/y
-(CN) PBOC may resume open market operations (OMO) soon - China Securities Journal
-(CN) China PBoC OMO: Injects CNY120B combined in 7, 14-day reverse repos v skips prior; Net drains CNY0B v CNY130B prior
-USD/CNY (CN) China PBoC sets yuan reference rate at 6.5207 v 6.4968 prior
-(CN) CHINA DEC CPI M/M: 0.3% V 0.3%E; Y/Y: 1.8% V 1.9%E; PPI Y/Y: 4.9% V 4.8%E
-China bond market remains weak in the early parts of 2018, volatility has ebbed since the beginning of November and the trend may begin to reverse - CSJ
-China said to suspend 'counter-cyclical' factor in yuan (CNY) fix - US financial press
-China Finance Ministry sells 1 and 10-year bonds at lower than expected yields

Australia/New Zealand
-ASX 200 opened +0.1%, has since pared gains; closed -0.6%
-ASX 200 REIT Index -1.3%, Telecom Services -1.1%, Energy -0.9%, Utilities -0.7%, Resources -0.5%, Financials -0.2%
-(AU) Australia Nov 3-month Job Vacancies: 2.7% v 6.0% prior
-(AU) China demand for Australian property is expected to moderate this year amid the impact of new state and federal taxes - Australian
Looking Ahead: Australia Nov Retail Sales due for release on Thursday

Other Asia
- (PH) Philippines Budget Sec Diokno: Q4 GDP growth can be around 7% or higher (vs 6.9% in Q3)
- (PH) Philippines Nov Trade Balance: -$3.8B (multi-year high for the deficit) v -$2.7Be
- Taiwan Semi, 2330.TW Reports Dec Rev NT$89.9B v NT$93.2B m/m v NT$78.1B y/y, 2017 Rev NT977.5B, +3.1% y/y

North America
-US equity markets ended mostly higher: Dow +0.4%, S&P500 +0.1%, Nasdaq +0.1%, Russell 2000 -0.1%
-S&P500 Health Care Sector +1.2%, Financials +0.8%; Real Estate -1.1%, Utilities -1%
-(US) Fed's Kashkari (dove, non-voter): inflation that's too low is a bigger concern than inflation that's too high; Economic recovery has been frustratingly slow; believes slow pace of recovery is due to psychological scarring from the financial crisis
-(US) Trump Administration said it will not permit drilling off of the coast of Florida – US press
-(US) Weekly API Oil Inventories: Crude: -11.2M v -5M prior
Looking Ahead: US weekly DOE Crude Oil Inventories due for release

Europe
-(UK) Prime Min May reportedly has scrapped plan to create cabinet post for a no-deal Brexit situation - UK press
-(UK) EU Chief Brexit Negotiator Barnier: the integrity of the single market is crucial in Brexit; risk of a disorderly Brexit has decreased; Future trade relationship with UK will not be frictionless
-(UK) UK Brexit Ministry: proposes three-month window after Brexit to begin court cases under general principles of EU law
-(UK) According to the EU companies in the UK may not have automatic access if there is no Brexit deal - financial press
-(UK) UK Chancellor of the Exchequer Hammond and Brexit Sec Davis wrote a joint article in the German Press suggesting close cooperation between the EU and UK regulators following Brexit, as part of an expansive trade agreement that covers goods and financial services (Note: Both Davis and Hammond are expected to be in Germany on Wed)
-(UK) Germany is said to show opposition to Brexit trade deal plan proposed by the UK - UK Press
-(UK) British Chambers of Commerce (BCC): Survey shows UK services and manufacturing companies less confident about 2018 revenues
-(IT) Five Star Party says its no longer time for Italy to leave the euro zone - Italian press
-(CN) EU Ambassador to China Schweisgut: EU hopes for full China market access with reciprocity
-World Bank raises global economic growth outlook at +3.1% (prior +2.9% forecasted)
-Continental [CON.DE]: Reports Prelim FY17 Rev €44B v €43.9Be; Guides initial FY18 Rev ~€47B, +6.8% y/y, adj EBIT margin 10.5%
-Akzo Nobel [AKZA.NL]: Shortlist of bidders for chemical unit reportedly include Carlyle Group and Bain - press
Looking Ahead: UK Nov Industrial Production, Manufacturing Production and Trade data due for release


***Levels as of 01:00ET***
- Nikkei225 -0.3%, Hang Seng +0.3%; Shanghai Composite -0.3%; ASX200 -0.6%, Kospi -0.4%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.1%, Dax -0.0%; FTSE100 -0.1%
- EUR 1.1949-1.1928; JPY 112.79-112.17; AUD 0.7831-0.7808;NZD 0.7173-0.7140
- Feb Gold -0.2% at $1,310/oz; Feb Crude Oil +0.8% at $63.45/brl; Mar Copper +0.2% at $3.23/lb

>>> US After Hours Summary: TNDM +23%, VOXX +22%, WDFC +5%, SNX -4

After Hours Summary: TNDM +23%, VOXX +22%, WDFC +5%, SNX -4%, JWN -1% following earnings/guidance, AFSI +20% on acquisition proposal, DPZ -3% on Pres/CEO departure news

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: TSRI +35% (thinly traded), TNDM +23.4%, VOXX +21.6%, WDFC +4.8%

Companies trading higher in after hours in reaction to news: KODK +44.1% (continues to surge higher), AFSI +20% (Stone Point Capital Partners with CEO of AmTrust and Karfunkel Family to jointly propose acquiring all shares of AmTrust Financial not controlled by family for $12.25/sh in cash), HMNY +10.3% (continued strength following MoviePass update), TVTY +10.1% (Tivity Health and Humana extended existing partnership through December 31, 2022, under which Humana offers the SilverSneakers fitness program to Humana's Medicare Advantage individual and group members), NMRK +9.2% (following Chairman Howard Lutnick comments on CNBC FastMoney), ORIG +8.8% (ticking higher on reports that the company tapped advisor to explore sale), UAL +2.1% (reports December 2017 traffic), CLDR +1.6% (upgraded after the close to Buy at Mizuho on reasonable valuation/upside to estimates; tgt raised to $21 from $18), PLAY +0.7% (Director disclosed purchase of 10000 shares), ALKS +0.5% (continued strength; releases presentation with investor update)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SNX -4.1%, JWN -1.2% (reports holiday comps +1.2%; sees FY18 EPS at high end of prior range)

Companies trading lower in after hours in reaction to news: APHB -16.7% (to offer shares of common stock in a public offering), DPZ -3.2% (Pres/CEO J. Patrick Doyle to leave in June; Board names Richard Allison as CEO and Russell Weiner as COO), FNGN -2% (indicated lower on block trade pricing), GPRO -1.3% (continued weakness)


>>> Teva doesn't foresee more specialty drug divests, CFO says

Teva doesn't foresee more specialty drug divests, CFO says
09 JAN 2018
Teva Pharmaceutical Industries [NYSE:TEVA] is unlikely to divest additional specialty drugs in its restructuring plan that is aimed at sharply reducing the company’s USD 32bn in debt, said CFO Michael McClellan.
The Israeli drugmaker faces significant financial challenges due to generic competition of its best-selling multiple sclerosis drug Copaxone as well as price erosion in the US generic market.

CEO Kåre Schultz explained during a presentation at the 2018 JPMorgan Healthcare Conference that the FDA’s move to quickly approve generic medicines as well as consolidation among generic buying consortia has created a challenging US market for generic medicines.

McClellan said on the sidelines of the conference that any future divestiture would likely be on the fringes of the company’s portfolio and would probably not include its specialty products.
Teva’s specialty portfolio includes Copaxone, Azilect, Nuvigil, ProAir, among other drugs.
The Israeli-based drugmaker sold its women’s health business — consisting of Paragard and Plan B — in September to CVC Capital Partners and Foundation Consumer Healthcare for USD 1.3bn.
Kåre said that Teva does not plan to make any major acquisitions in the next four years as it looks to reduce its debt, but would explore investing in growth opportunities. McClellan said that the company was unlikely to make any acquisitions that would significantly add to its debt at this time.
During the company’s breakout session, McClellan said the impact of US tax reform would have a slightly negative effect on the company in the short term, citing interest payments on its debt, but would be neutral in the long term.