*MORGAN STANLEY REPORTED 6.86% STAKE IN DEUTSCHE ON NOV. 14
Said to be launching "Sports Illustrated TV" this week
- Priced at $4.99 a month, will initially be accessible only on Amazon Channels
- The network is expected to launch with 130 hours of content, including a mix of original documentary series, studio shows, programming related to the Sports Illustrated swimsuit franchise, and a package of sports movies. It will not air any live sporting events.
Dow -0.13% S&P -0.23% Nasdaq -0.29% Russell -0.26%
US MArket closed lower today, as investors continued to digest the prospect of tax reform--which has been a stumbling block for the market as of late. Energy shares showed particular weakness as the price of crude oil continued to retreat from the two-year high it touched at the beginning of the prior week. West Texas Intermediate crude futures declined by 1.9%, settling at a price of $55.70 per barrel. The S&P 500's energy sector finished lower by 1.5%. materials (-1.1%) and telecom services (-1.4%) groups also finished with sizable losses, but most other sectors closed roughly in line with, or above, the broader market. GE-5.9%. consumer staples (+0.3%) and consumer discretionary (+0.1%) spaces also showed relative strength. US After Hours SORL +34%, CARG +11%, AMRS +7%, WPRT +6% higher and MTSI -9% lower following earnings/guidance. Following the negative leads from the US, markets opened broadly lower in Asia. Energy shares have been under pressure, following the 3% decline in oil prices seen on Tuesday’s session. PetroChina has traded lower by more than 4%, while Australia’s S&P ASX 200 Energy Index has dropped by more than 2%. Airlines have outperformed amid the weakness being seen in oil prices. Shares of Air China have risen by over 4%, while Qantas has gained over 3.5%. Steel makers in Japan are trading broadly lower, with shares of JFE down over 3%. Shares of US Steel dropped by more than 2.5% during the US trading session. Besides this US automakers, Ford and GM, each traded down over 1% and this weakness has seemingly extended into the Japanese trading session. Shares of Toyota and Honda have traded lower by more than 1%,
Nikkei -1.57% HAng Seng -0.90% CSI -0.63% Shanghai -0.79% Shenzen -1%
Eur$ 1.1828 CNH 6.6360 CNY 6.6334 JPY 112.82 GBP 1.3178 CHF 0.9856 RUB 60.0934 WTI$ 55.17 -0.95%
S&P -0.47% EuroStoxx -0.65% FTSE -0.35% DAX -0.80% SMI -0.56%
Macro :
- China Growth Slowdown Leads to Risk-Off Moves: Macro Squawk Wrap
- Toscafund Asks Small Firms to Pay for Research After MiFID II
- Mnuchin: 20% Corp. Tax Rate Should Be Permanent, Not Sunset
- France Tax Revenue Higher Than Anticipated: Darmanin Tells Echos
Keep an eye on :
- ADP FP : ADP: Paris Airport Oct. Traffic up 3.6% to 8.8M Passengers
- AB1 GY : Air Berlin Finance B.V. Declared Bankrupt by Amsterdam Court
- AST IM : Astaldi Hits 8-Year Low Before 9-Mo. Report as Venezuela Weighs
- DLG IM : De’Longhi Parent to Sell Up to 5% Stake Via Bookbuilding
- EDF GY : EDF 9-Month Revenue EU49.7b vs EU52b a Year Ago EDF’s 2017 Targets Require No New Delays in Reactor Restarts
- GEN DC : Genmab Boosts 2017 Guidance on Inclusion of Darzalex Milestones
- HLAG GY : Hapag-Lloyd Third Quarter Revenue 1.8% Above Estimates
- ICAD F : Icade: Offer for ANF to Run From Nov. 16 to Dec. 6
- NESN VX : Nestle to Combine All Paris Sites at Porte de Versailles: AWP
- NYR BB : Nyrstar to Raise EU100m in Placement to Cut Debt, Fund Capex
- SFER IM : Salvatore Ferragamo Nine Month Revenue EU1.01 Bln
- UBSG SW : French Nat. Prosecutor Confirms No Accord With UBS on Tax Case
- US IM : Banco BPM:Experts Set Price of UnipolSai Stk in Vita at EU535.5m
- VOW3 GY : Volkswagen to Pay NJ $69m in Settlement Over Diesel Vehicles
- ZURN VX : Zurich Insurance to Stop Underwriting Coal, Divest Holdings
>>> Up
* Bekaert Upgraded to Neutral at JPMorgan; PT 42 Euros
* Credit Suisse TP Raised at HSBC on Investor Day Expectations
* Elior Group Upgraded to Strong Buy at Raymond James; PT 29 Euros
* Euskatel Upgraded to Buy at Ahorro Corporacion; PT 7.55 Euros
* Fresnillo Upgraded to Buy at HSBC
* Nordea Upgraded to Hold at Deutsche Bank
* NOS Upgraded to Neutral at BPI; PT 5.75 Euros
* Paragon Upgraded to Buy at Investec
* Sanofi Raised to Equal-weight at Barclays; Price Target 75 Euros
>>> Down
* Astaldi Downgraded to Reduce at Kepler Cheuvreux; PT 2.50 Euros
* Axiare Downgraded to Hold at ING; PT 18.50 Euros
* FirstGroup Downgraded to Hold at Investec
* Intertek Cut to Reduce at Oddo BHF; Price Target 50.50 Pounds
* Infineon Downgraded to Hold at Nord/LB; PT 24.50 Euros
* Medigene Cut to Neutral at Oddo BHF; Price Target 12 Euros
* Repsol Downgraded to Neutral at Exane; PT 16 Euros
* RWE Downgraded to Hold at Santander; PT 23.23 Euros
* Subsea 7 Downgraded to Hold at HSBC; PT 140 Kroner
* TechnipFMC Downgraded to Reduce at HSBC; PT $26
>>> Initiation
* Air France-KLM Initiated at Natixis With Buy
* Beni Stabili SpA SIIQ Initiated at Natixis With Reduce
* VW Initiated at MainFirst With Outperform; PT 220 Euros
* Yara Initiated at Berenberg With Buy; PT 435 Kroner
>>> Call
After Hours Summary: SORL +34%, CARG +11%, AMRS +7%, WPRT +6% higher and MTSI -9% lower following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: APHB +33.7%, SORL +33.6%, NVCN +19%, RLOG +18.8%, SYNC +10.9% (thinly traded), CARG +10.7%, AMRS +7.3%, WPRT +6%, APTO +4.6% (light volume), IMMY +4.3%, JRJC +3.8%, YY +2.9%, BZH +2%, CDTI +2%
Companies trading higher in after hours in reaction to news: SNCR +4.6% (has completed the sale of its wholly owned subsidiary Intralinks Holdings to an investment fund affiliated with Siris Capital Group), MTOR +4.5% (ahead of earnings), TRXC +4.5% (modestly rebounding), AAOI +3.9% (Director disclosed the purchase of 22.4K shares), LRCX +1.9% (authorizes $2 billion share repurchase and 11% increase of quarterly dividend to $0.50 per share), SYF +1.4% (after Berkshire Hathaway disclosed increased stake), NTNX +1.1% (initiated with Outperform at Wells Fargo $40 price target)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: XGTI -15.2%, SRAX -10.9%, MTSI -9.3%, FTFT -6.7% (very thinly traded; filed to delay its 10-Q; provided prelim results), SITO -6.4%, YRD -5.4%, AMRK -4.6% (thinly traded), PRKR -4%, EVOK -3.2%, REXX -2.4%
Companies trading lower in after hours in reaction to news: ACHN -7.6% (reports preliminary proof-of-concept results from group 1 of its ongoing Phase 2, open-label, 14-day study of ACH-4471 for patients with C3 glomerulopathy; announces that JNJ intends to offer for sale in an underwritten public offering 18,367,346 shares of Common Stock), G -2.8% (announces underwritten public offering of 10 mln common shares by certain shareholders), OMAM -2.1% (launches public offering of 6,039,630 of its ordinary shares by Old Mutual), PSDO -1.9% (announces commencement of a proposed secondary public offering of 8 mln shares of common stock by certain funds affiliated with Apollo Global Management), IBM -0.6% (Berkshire Hathaway discloses lowered stake)
Asia Mid-Session Update: Crude falls on API data; A$ falls on lower wage price index
***Headlines/Economic Data***
Japan
- (JP) JAPAN Q3 PRELIM GDP SA Q/Q: 0.3% V 0.4%E; ANNUALIZED Q/Q: 1.4% V 1.5%E; NOMINAL GDP Q/Q: 0.6% V 0.6%E
- (JP) Japan Economy Min Motegi comments on Q3 GDP data: Domestic demand is flat, overseas demand a positive; nominal GDP at a record ¥546T
Korea
- (KR) South Korea Finance Ministry official: Govt withdrew its plan to purchase bonds today as it reviews various ways to handle excess tax revenue
- (KR) Bank of Korea (BOK) sells KRW2.1T in 2-yr bonds at 2.18%
China/Hong Kong
- (CN) China PBoC Open Market Operations (OMO): CNY330B v CNY280B injected in 7, 14 and 63-day reverse repos prior; Net injection CNY220B v CNY140B prior
- USD/CNY (CN) PBOC sets yuan reference rate at 6.6263 v 6.6299 prior
- (CN) PBOC Policy Adviser: Worried about impact from financial deregulation in the US
Australia/New Zealand
- (AU) Australia Nov Westpac Consumer Confidence Index: 99.7 v 101.4 prior; M/M: -1.7% v 3.6% prior
- (AU) AUSTRALIA Q3 WAGE PRICE INDEX Q/Q: 0.5% V 0.7%E; Y/Y: 2.0% V 2.2%E; AUD/USD falls below 0.7580
- (AU) Australia sells A$1.0B v A$1.0B indicated in 2.75% Nov 2028 Bonds; avg yield 2.6867%
- (NZ) New Zealand Fin Min Robertson reiterates it is government intention to reduce net debt to 20% of GDP within five years - speaking to parliament
***Levels as of 23:00ET***
- Nikkei -1.3%, Hang Seng -0.7%; Shanghai Composite -0.7%; ASX200 -0.4%, Kospi -0.3%
- Equity Futures: S&P500 -0.3%; Nasdaq100 -0.3%, Dax -0.3%; FTSE100 -0.1%
- EUR 1.1802-1.1786; JPY 113.49-113.04; AUD 0.7632-0.7576;NZD 0.6888-0.6867
- Dec Gold -0.1% at $1,281/oz; Dec Crude Oil -1.1% at $55.09/brl; Dec Copper -0.1% at $3.05/lb
***Narrative***
-Following the negative leads from the US, markets opened broadly lower in Asia.
-Energy shares have been under pressure, following the 3% decline in oil prices seen on Tuesday’s session. PetroChina has traded lower by more than 4%, while Australia’s S&P ASX 200 Energy Index has dropped by more than 2%.
-Airlines have outperformed amid the weakness being seen in oil prices. Shares of Air China have risen by over 4%, while Qantas has gained over 3.5%.
-At the same time, the resources sector in Australia is trading with a negative tone. Metals prices in China are trading lower, after copper declined by 2% during yesterday’s New York session. Nickel in Shanghai has opened down by 5%, while iron-ore traded in China has declined by more than 4%.
-Steel makers in Japan are trading broadly lower, with shares of JFE down over 3%. Shares of US Steel dropped by more than 2.5% during the US trading session.
-Besides this US automakers, Ford and GM, each traded down over 1% and this weakness has seemingly extended into the Japanese trading session. Shares of Toyota and Honda have traded lower by more than 1%, amid the weakness being seen in USD/JPY.
-Technology name Softbank has declined by over 0.5%, while in South Korea chipmakers Hynix and Samsung have traded lower by over 0.4%.
-In Taiwan, weaker earnings have weighed on tech names. Hon Hai Precision Industry has dropped over 1.5%, as Q3 results missed market expectations. Quanta Computer has declined by over 8% on weaker than expected Q3 profits.
-In Hong Kong, the Hang Seng Information Technology index has declined by over 0.5%. Shares of Tencent have weakened by over 0.5%. Semiconductor Manufacturing has declined by over 4%, after reporting weaker than expected Q3 results. China’s small-cap CHINEXT index has declined by over 1.4%.
-Meanwhile, property names in Hong Kong are trading generally weaker. The Hang Seng Property and Construction index is off by more than 0.6%. Earlier, China’s planning body, the NDRC, announced that it would ‘conduct pricing supervision’ related to housing.
-The Hang Seng Financials index has declined by more than 0.5%. China’s 10-year bond yield is currently lower on the session. Japanese mega banks, Mitsubishi UFJ and Sumitomo Mitsui have traded lower after the companies reported better than expected first half profits and affirmed their FY outlooks. With the declines being seen in the Japanese equity markets, the TOPIX Securities brokers’ index has declined by more than 1%.
-The TOPIX Retail Trade index has also declined by over 1%. In Q3, Japan’s private consumption declined by 0.5% q/q, according to preliminary Q3 GDP data.
- The overall preliminary annualized GDP figure slightly missed market expectations, while the nominal q/q figure was in line. Net exports added 0.5 pct points to growth, while private inventories added 0.2 pct points.
-The Aussie has declined by over 0.6%, while Australia’s 3-year bond yield has dropped by over 5bps. The earlier released Q3 wage price data for the country missed economists’ expectations.
-Looking ahead, Australia’s Oct Employment Change is due to be released on Thursday’s session, while US Oct CPI and Retail Sales are due for release later today.
***Equities notable movers***
Australia/New Zealand
- AAC.AU Reports H1 (A$) statutory Net -38M v +48M y/y; EBITDA 16M v 14M y/y; Meat sales 170M v 196M y/y; -10%
- ICQ.AU Announces A$10M 1 for 5.8 non-renounceable rights offer priced at A$0.18/share through Bell Potter; +8%
Japan
- 8316.JP Reports Q3 Net ¥178.7B v 161.5Be; -2%
US
- SORL Reports Q3 $0.44 v $0.18e, Rev $101.3M v $63.8Me - filing (1 est); +37% afterhours
Jericho Capital (Josh Resnick) discloses updated portfolio positions in 13F filing: New GRPN, FEYE, CNDT, YELP positions
Highlights from 2017 Q3 filing as compared to 2017 Q2 filing:
- New positions in: GRPN (~12.5 mln shares), FEYE (~3.42 mln), CNDT (~2.15 mln), YELP (~1.33 mln), MTCH (~0.79 mln), ILG (~0.73 mln), SBAC (~0.64 mln), XLNX (~0.4 mln), EDU (~0.34 mln)
- Increased positions in: LC (to ~8.41 mln shares from ~6.6 mln shares), P (to ~14.29 mln from ~12.51 mln), YNDX(to ~2.9 mln from ~1.35 mln), FWONK (to ~2.43 mln from ~1.7 mln), RHT (to ~1.68 mln from ~1 mln) GDDY (to ~2.09 mln from ~1.55 mln), DATA (to ~0.89 mln from ~0.54 mln) OLED (to ~0.61 mln from ~0.29 mln),
- Closed positions in: SIRI (from ~4.99 mln shares), CY (from ~2.51 mln), AMD (from ~2.16 mln), SYMC (from ~1.77 mln), ZEN (from ~1.75 mln), MOMO (from ~1.43 mln), ATUS (from ~1 mln), TWX (from ~0.93 mln), ATVI (from ~0.89 mln)
- Decreased positions in: LOGM (to ~0.53 mln shares from ~0.58 mln shares), MRVL (to ~4.55 mln from ~6.15 mln),STMP (to ~0.57 mln from ~0.73 mln)