>>> Vivarte officially puts Besson up for sale; buyers for Naf Naf, Andre to be


Vivarte officially puts Besson up for sale; buyers for Naf Naf, Andre to be revealed next week (translated)
05 JAN 2018

Patrick Puy, chairman and chief executive of French privately-owned retailer Vivarte, has officially announced that the company put its shoes retailing subsidiary Besson up for sale, French daily Les Echos reported. Puy said during a radio interview that Besson was a direct competitor to another unit of the group, La Halle aux Chaussures, and that the disposal was the last divestment the group would proceed to. make

Puy also added that he would announced the name of the buyers for subsidiaries Naf Naf and Andre next week, while the finalisation of the disposals is expected to take pace in March or April 2018.

The report went on to cite a labour union representative Michel Peyrago as claiming that he believed the group could, however, proceed to further sales, leading to the “disappearance” of the group.

Besson's revenue for the financial year ended August 31, 2017, was EUR 265m.

>>> What to look at today - 5th of January 2018

Dow +0.61% S&P +0.40% Nasdaq +0.18% Russell +0.20%
US Market closed on record level again. After opening modestly above Wednesday's closing levels, the equity market kept pretty steady through the closing bell. Nine of eleven sectors advanced on Thursday with gains ranging between 0.1% and 0.9%. The heavily-weighted financial sector (+0.9%) was the top-performing group after trailing the broader market through the first two sessions of the new year. energy sector +0.6%, bringing its 2018 gain to 4.0%, with WTI +0.6% to $61.97. On the downside, the health care sector underperformed, adding just 0.1%, as biotechnology shares gave back a portion of gains registered earlier in the week; the iShares Nasdaq Biotechnology ETF (IBB 109.97, -0.91) lost 0.8%. WBA -5.2% after bnetter numbers, LB -12.3% after disappointing comments. US After Hours  FC +9.8%, SONC +6.3%, FRAN -16.5%, PSMT -6.7%, BKS -3.8% following earnings/guidance/sales updates.  Asian stocks are on the cusp of their best week in almost six months as investors around the world pile into equities at the start of 2018 amid robust economic data from the U.S. to Europe to China. Benchmark indexes in Tokyo, Seoul and Shanghai are in the green after U.S. shares surged to fresh records Thursday.

Nikkei +0.89% Hang Seng -0.07% CSI +0.30% Shanghai +0.22% Shenzen +0.12%

Eur$ 1.2059 CNH 6.4831 CNY 6.4890 JPY 113.05 GBP 1.3558 CHF 0.9756 RUB 56.9610 WTI$ 61.84 -0.27%

S&P +0.09% EuroStoxx +0.11% FTSE -0.05% Dax +0.19% SMI +0.05%

Macro :
- Fed Seeks Input on Proposed Guidance for Banks’ Risk Management


Keep an eye on :
- AMZN US : Amazon Is Said to Plan Bid for Premier League Streaming Rights
- AAPL US : Apple Says All Macs, IPhones, IPads Exposed to Chip Flaw
- ARAMCO IPO : Saudi Cabinet Approves Aramco Joint-Stock Co. Status, Sabq Says
- AST IM : Astaldi Part of JV Awarded EU73M Contract for Italy Hospital
- ASTON MARTIN IPO : Aston Martin Expects to Beat Profit Guidance on 2017 Sales Jump
- BAYN GY : Monsanto Standalone Value $109/Share, More With Tax Change: UFP
- CNHI IM : Dec. Class 8 Truck Orders Seen Up 85% Y/y, Wells Fargo Says
- GOOGL US : Google Makes Second Chinese Investment, in Videogames Streaming
- GPRO US : GoPro Is Said to Cut 200-300 Jobs, Mostly in Aerial: TechCrunch
- NAS NO : Norwegian: Production Growth for 2018 Is Estimated at 40%
- SAN SM : Santander Wants to Buy Back Popular Cards Business: Expansion
- SPOTIFY IPO : *SPOTIFY SAYS IT HAS 70 MILLION SUBSCRIBERS
- TSLA US : Tesla Sparks Cash Questions; Riding the Rails: Industrials Wrap
- TSCO LN : U.K. Retail Store Sales Slide Over Christmas, BDO Says
- TIG BB : Takeda Offers 81% Premium in EU520m Offer for Belgium’s TiGenix
- TOM2 NA : TomTom Adopts New Accounting Standards IFRS 15 and IFRS 16

>>> Europe : Brokers Upgrade s& Downgrades - 5th of January 2018

>>> Up
* Amadeus Upgraded to Outperform at Evercore ISI; PT 74 Euros
* Anglo American Upgraded to Buy at Jefferies; PT 20 Pounds
* Bpost Upgraded to Overweight at Barclays; PT 33.75 Euros
* Ceconomy Upgraded to Reduce at AlphaValue
* Centrica Upgraded to Outperform at Credit Suisse; PT 1.70 Pounds
* Continental Upgraded to Overweight at JPMorgan
* Fiat Chrysler Upgraded to Overweight at JPMorgan
* Hella Upgraded to Overweight at JPMorgan
* Henkel Upgraded to Neutral at Goldman; Price Target 110 Euros
* Lancashire Upgraded to Neutral at JPMorgan; PT 7.25 Pounds
* Mapfre Upgraded to Neutral at JPMorgan; Price Target 2.80 Euros
* PostNL Upgraded to Equal-weight at Barclays; PT 4 Euros
* Terna Upgraded to Hold at National Bank AG
* United Utilities Raised to Neutral at Credit Suisse
* USG Upgraded to Overweight at JPMorgan; PT $46
* USG Upgraded to Outperform at Baird; PT $45
* VW Upgraded to Buy at Deutsche Bank

>>> Down
* Admiral Downgraded to Underweight at JPMorgan; PT 19 Pounds
* ASR Nederland Cut to Underweight at JPMorgan; PT 31.90 Euros
* BMW Downgraded to Underweight at JPMorgan
* Coface Downgraded to Neutral at JPMorgan; PT 9.20 Euros
* Hastings Cut to Neutral at JPMorgan; Price Target 3.50 Pounds
* Idorsia Downgraded to Hold at Jefferies
* Nokia ADRs Downgraded to Neutral at Credit Suisse; PT $5.04
* Nokian Renkaat Downgraded to Neutral at JPMorgan
* Teva ADRs Downgraded to Underperform at Wells Fargo; PT $17
* Vectura Cut to Hold at Shore Capital; Price Target 1.22 Pounds
* Vienna Insurance Cut to Underweight at JPMorgan; PT 25.50 Euros

>>> Initiation
* AF Rated New Buy at Kepler Cheuvreux; PT 210 Kronor
* Autoliv Rated New Buy at Longbow; PT $155
* BP Midstream Partners Reinstated Neutral at Credit Suisse

>>> Call
>> Stock
* *VOLKSWAGEN REMOVED FROM ANALYST FOCUS LIST AT JPMORGAN
* *PEUGEOT ADDED TO ANALYST FOCUS LIST AT JPMORGAN

>>> US After Hours Summary: FC +9.8%, SONC +6.3%, FRAN -16.5%, PSM

After Hours Summary: FC +9.8%, SONC +6.3%, FRAN -16.5%, PSMT -6.7%, BKS -3.8% following earnings/guidance/sales updates

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: FC +9.8%, SONC +6.3%, AEHR +6% (also received an initial order from a new customer for its FOX-XP test and burn-in system for singulated bare die testing and burn-in of integrated silicon photonics devices for data communications applications), AMRN +5.7%, TTOO +3.9% (FDA clearance of T2Bacteria Panel remains on track for first quarter 2018; sees Q4 rev above prior guidance)

Companies trading higher in after hours in reaction to news: CNIT +64.4% (continued strength after closing at multiyear highs), WSCI +18.4% (DPW Holdings discloses 7.76% active stake; may engage in communications with management and Board ), CCIH +18.4% / CCCR +13.6% / CNET +1.7% (continued strength), DWCH +15.2% (higher following Reuters report that the company hired financial adviser), CFMS +10.1% (announced the publication of a prospective study in The Journal of Knee Surgery), AEHR +7% (received an initial order from a new customer for its FOX-XP test and burn-in system for singulated bare die testing and burn-in of integrated silicon photonics devices for data communications applications), YUME +6.6% (YuMe indicated higher after RhythmOne commenced exchange offer for outstanding YuMe shares pursuant to previously announced merger agreement), NQ +2.5% (still checking), TELL +2.5% and LNG +1.6% (initiated with Buy at Stifel), IONS +2.1% (being attributed to AVXS news), RTIX +1.2% (to acquire spine-focused medical device company Zyga Technology)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: FRAN -16.5% (lowers Q4 revenue guidance following disappointing holiday performance), OMED -9.5%, (CEO Paul J. Hastings resigns to pursue new career opportunities, effective January 1st, 2018; co also provides 2018 outlook), PSMT -6.7%, BKS -3.8% (reports total holiday sales -6.4% y/y to $953 mln; expects FY18 comps to decline in mid-single digits and EBITDA of $140 -160 mln)

Companies trading lower in after hours in reaction to news: RGNX -17.8%, (provides guidance with 2017 corporate update; had more than $175 mln in cash and equivalents to end the year; FY18 cash burn of $85-95 mln), NOVN -10.4% (commences common stock offering), SCYX -9.1% (thinly traded; provides a corporate update; Path forward established for iv program of SCY-078, with clinical trials to initiate in Q3 of 2018 with an improved IV formulation), HTGM -3.7% (after surging 75% higher today), AUPH -3.4% (filed preliminary short form base shelf prospectus to replace prior expired prospectus/corresponding shelf registration statement ), OKE -2.7% (to invest approximately $1.4 billion to construct a new pipeline, and related infrastructure, to transport natural gas liquids from the Rocky Mountain region to the company's existing Mid-Continent NGL facilities; launches 19 mln share common stock offering), AVXS -1.7% (to submit information requested by FDA to the IND on an on-going basis; plans to request a pre-BLA meeting in Q2 2018 ), M -1.2% (continued weakness)

>>> Asian Update

Asia Market Update: Asian equities and currencies trade generally higher ahead of upcoming US payrolls and ISM Non-Manufacturing data

Australia/ New Zealand
-ASX 200 opened +0.3%: closed +0.7%
ASX Resources Index +0.9%, Financials +0.8%; REITs -0.6%
Aussie declines after weaker than expected Nov trade data; Australia Nov Trade Balance (A$) -628M v +550Me (2nd straight deficit); Prior trade revised lower from +105M to -302M (first deficit since Oct 2016)

China/Hong Kong
-Hang Seng opened +0.5%, Shanghai Composite flat
Chinese beer companies trade sharply higher: Brewers in China reportedly boost prices by 10-20%, said a local press report
HSCI Property/Construction Index +2.5%, Energy +0.6%; Consumer Goods -0.6%, Financials -0.2%
-(CN) PBOC SETS YUAN REFERENCE RATE AT 6.4915 V 6.5043 PRIOR (strongest CNY fix since May 2016)
-(CN) China PBoC: Skips OMO for 10th straight session: Net drain: Nil v CNY130B prior
-(CN) China issues rules for equity investment by insurance funds: to ban insurers from guaranteed return of equity on investments; China's insurance regulator, CIRC, says the rules are aimed at curbing 'implicit' local government debt.
-(CN) China to collect personal debt information related to online finance – Chinese Press; Says the purpose of the credit information platform is to help deal with systemic risks
-(CN) There is renewed press speculation that China may maintain GDP growth target at around 6.5% for 2018 – financial press
-(CN) Yuan unlikely to see sharp rises or falls in 2018; likely to be mostly stable - Chinese press: **Note: The report is in line with some of the recent comments by Chinese officials.

Japan
-Nikkei 225 opened +0.6% after gaining 3.3% in prior session in catch-up rally: closed: +0.9%
TOPIX Iron & Steel Index +1.5%, Securities +0.7% (gained 4.9% prior session), Electric Appliances +0.7%
Toshiba +3%: Brookfield Business Partners announces deal to acquire Westinghouse for $4.6B
Continued strength in the auto sector, following Thursday’s gains: Toyota +1.8%, Nissan +1.4%
Financials track the strength seen in the NY session: Sumitomo Mitsui +1.4%, Mitsubishi UFJ +1.4%
Softbank -1.1%
Fast Retailing +0.9%: To report Dec SSS after the close
-(JP) Japan Finance Min Aso: Reiterates needs to raise sales tax for fiscal consolidation, but if economy is not good tax hike can't proceed; To craft new primary balance goal around next year.
-(JP) Japan Dec Nikkei PMI Services 51.1 v 51.2 prior; Composite: 52.2 v 52.2 prior
-(JP) Japan Dec Monetary Base: ¥480.0T v ¥471.5T prior; Y/Y: 11.2% v 13.2% prior

Korea
-Kospi opened +0.4%
Chipmakers trade higher: Samsung Electronics +1%, Hynix +2.5%
Financials also generally higher: Industrial Bank of Korea +1.7%, KB Financial +1%. Hana Financials +0.9%
-Korean Won (KRW) trades near 3-year high amid equity flows
-(KR) Follow Up: South Korea Unification Ministry: North Korea said it accepts offer for talks on Jan 9th; talks to include Winter Olympics and 'other issues of mutual interest'; Expects additional hotline talks with North Korea over the weekend.
-(KR) White House spokesperson: confirms Pres Trump and South Korean Pres Moon agreed to continue campaign of maximum pressure against North Korea; Agreed to de-conflict the Olympics and our military exercises to ensure Games' security
(KR) China said to send an envoy (to discuss North Korea) to South Korea between Jan 5th- 6th - press
-(KR) North Korea said to be ‘likely’ preparing for new rocket engine test (no timeframe given) – US financial press
-(KR) South Korea Nov Current Account Balance: $7.4B v $5.7B prior; Balance of Goods (BOP): $11.5B v $8.6B prior

Other Asia
-USD/MYR: Trades at the lowest level since Aug 2016: Malaysia Ringgit (MYR) +0.3%
-(MY) Malaysia Nov Trade Balance (MYR) 9.95B v 10.9Be; Exports to China +3.3%, US+13.4%
-USD/INR: Indian Rupee (INR) trades at highest level since July 2015.
-(PH) PHILIPPINES DEC M/M: 0.3% V 0.3%E; Y/Y: 3.3% V 3.3%E; CORE Y/Y: 3.0% V 3.1%E**Note: Central Bank has 2.0-4.0% target range for inflation

North America
-US equity markets ended broadly higher: Dow +0.6%, S&P500 +0.4%, Nasdaq +0.2%, Russell 2000 +0.2%
S&P500 Financial Sector +1%, Materials +0.8%
-Apple: Said all Mac systems and IOS devices are affected by chip security issue, but no known exploits are currently impacting customers; recently uncovered security issues known by the names of 'Meltdown' and 'Spectre'
-(US) Fed’s Bullard (non-voter, Dove): inflation targeting has been major achievement for the Fed; price level targeting is worth consideration
-(US) DOE CRUDE: -7.4M V -4.5ME
Looking ahead: US Dec Nonfarm payrolls due for release, along with US Dec ISM Non-Manufacturing PMI and Canada Dec Employment Change

Europe
-(UK) UK 2017 New Car Sales down ~5.6% to 2.54M units (largest decline since 2009); Sees 2018 new car sales down 5-7% – SMMT
-(UK) UK Dec BRC Shop Price Index Y/Y: -0.6% v -0.1%
Looking Ahead: Euro Zone Dec prelim CPI to be released (German Dec prelim CPI was released on Dec 29th)
(IR) United Nations (UN) Security Council reportedly to hold meeting on Friday at 15:00ET concerning situation in Iran - press

***Levels as of 01:00ET***
- Hang Seng flat; Shanghai Composite +0.3%; Kospi +1%
- Equity Futures: S&P500 +0.1%; Nasdaq100 +0.1%, Dax +0.1%; FTSE100 -0.1%%
- EUR 1.2065-1.2080; JPY 112.72-112.97; AUD 0.7843-0.7870 ;NZD 0.7146-0.7165
- Feb Gold +0.1% at $1,322/oz; Feb Crude Oil flat at $62.02/brl; Mar Copper +0.4% at $3.272/lb

>>> US Close Dow +0.61% S&P +0.40% Nasdaq +0.18% Russell +0.20%


Closing Market Summary: Financials Pace Third Consecutive Record Finish

Stocks advanced to new records for the third session in a row on Thursday, keeping their perfect 2018 record intact.

The Dow Jones Industrial Average climbed 0.6% to 25075.13, the S&P 500 jumped 0.4% to 2723.99, and the Nasdaq Composite ticked up 0.2% to 7077.91. All three stock indices finished at new all-time highs with the Dow crossing the 25000 mark for the first time. The Russell 2000 also notched a new record, rising 0.2% to 1555.72.

After opening modestly above Wednesday's closing levels, the equity market kept pretty steady through the closing bell.

Nine of eleven sectors advanced on Thursday with gains ranging between 0.1% and 0.9%. The heavily-weighted financial sector (+0.9%) was the top-performing group after trailing the broader market through the first two sessions of the new year. Lenders like JPMorgan Chase (JPM 109.04, +1.54), Bank of America (BAC 30.19, +0.39), Wells Fargo (WFC 62.33, +0.77), and Citigroup (C 75.51, +0.92) added more than 1.0% apiece.

Meanwhile, the energy sector managed to tack on another 0.6%, bringing its 2018 gain to 4.0%, as crude oil extended its three-week rally. West Texas Intermediate crude futures advanced to a fresh three-year high, jumping 0.6% to $61.97 per barrel. Crude futures benefited from the Department of Energy's weekly inventory report, which showed that U.S. crude stockpiles declined by 7.4 million barrels last week--nearly 3 million barrels more than estimates had predicted.

On the downside, the health care sector underperformed, adding just 0.1%, as biotechnology shares gave back a portion of gains registered earlier in the week; the iShares Nasdaq Biotechnology ETF (IBB 109.97, -0.91) lost 0.8%, trimming its week-to-date gain to 3.0%. The lightly-weighted utilities and real estate sectors also struggled, finishing at the bottom of the sector standings with losses of 0.9% and 1.7%, respectively.

In corporate news, Walgreens Boot Alliance (WBA 71.60, -3.91) dropped 5.2% despite reporting better-than-expected earnings and revenues for its fiscal first quarter. L Brands (LB 51.00, -7.16) also had a disappointing outing, as did many retailers, after lowering its profit projections for the holiday season. LB shares ended the session lower by 12.3% while the SPDR S&P Retail ETF (XRT 45.71, -0.27) shed 0.6%.

Elsewhere, equity indices in the Asia-Pacific region finished Thursday on a higher note with Japan's Nikkei (+3.3%) climbing to its best level since 1991. European equities also had a solid day, especially financial names like Deutsche Bank (+2.7%) and Credit Agricole (+4.5%), pushing the Euro Stoxx 50 higher by 1.7%.

Outside the equity markets, U.S. Treasuries sold off modestly, extending losses for the week. The yield on the benchmark 10-yr Treasury note advanced one basis point to 2.45% while the 2-yr yield settled at 1.95% after closing the prior session at 1.93%. Meanwhile, the U.S. Dollar Index slipped 0.3% to 91.60, notching its sixth loss in seven sessions. The greenback lost 0.4% against the euro (1.2068) and 0.3% against the British pound (1.3554).

Reviewing Thursday's economic data, which included the ADP National Employment Report for December and the weekly Initial Claims Report:

  • The ADP National Employment Report showed an increase of 250,000 in December (consensus 190,000). The November reading was revised to 185,000 from 190,000.
    • The ADP reading precedes Friday's more influential Employment Situation Report for December (consensus +188K).
  • The latest weekly initial jobless claims count totaled 250,000, while the consensus expected a reading of 239,000. Today's tally was above the revised prior week count of 247,000 (from 245,000). As for continuing claims, they declined to 1.914 million from a revised count of 1.951 million (from 1.943 million).
    • Initial claims have held below 300,000 for 148 straight weeks

On Friday, the Employment Situation Report for the month of December will be released at 8:30 AM ET. The consensus expects the report will show the addition of 188,000 nonfarm payrolls, a 0.3% increase in average hourly earnings, and an unemployment rate of 4.0%.

In addition, investors will receive the November Trade Balance (consensus -$47.9 billion) at 8:30 AM ET and both November Factory Orders (consensus +1.4%) and the ISM Services Index (consensus 57.6) at 10:00 AM ET.

  • Nasdaq Composite: +2.5% YTD
  • S&P 500: +1.9% YTD
  • Russell 2000: +1.4% YTD
  • Dow Jones Industrial Average: +1.3% YTD