>>> What to look at today - 20th of October 2017

Dow +0.02% S&P +0.03% Nasdaq -0.29% Russell -0.21%
US Closed Flat after pening on lows. AAPL -2.4% weighted ont he market following overnight reports that iPhone 8 orders are weaker than expected and the new Apple Watch is having cellar connection issues in China. EBAY -1.8% ADBE +12.2% after better consensus. The consumer staples space (-0.6%) was the only sector to finish below technology on the day's leaderboard. Phillip Morris (PM 108.15, -4.36), the maker of cigarette brand Marlboro, was the sector's weakest component, tumbling 3.9%, after reporting disappointing profits and revenues for the third quarter and issuing below-consensus earnings guidance for fiscal year 2017. Politico reported in the late afternoon that Fed Governor Jerome Powell is the leading candidate to become the next Fed Chair. President Trump is expected to make his decision before he leaves for an 11-day trip to Asia on November 3. US after Hours SKX +22%, TEAM +12%, IMPV +5.1%, MXIM +4%, PYPL +3.4% higher and NCR -10%, TACO -6%, ATHN / ISRG -3% lower following earnings/guidance, DRRX -54% after Ph 3 trial results. Asian equity markets opened the session mixed. Nissan has declined by over 1.5%. In Hong Kong, insurer AIA Group has declined by over 2% on weaker than expected growth in quarterly new business value. US companies due to report earnings later today include General Electric (GE), Honeywell, Manpower, P&G and Schlumberger. On Sunday (Oct 22nd), Japan is due to hold its general elections. On Thursday (Oct 26th), the ECB is due to hold its monetary policy meeting.

Nikkei +0.02% Hang Seng +0.83% CSI -0.28% Shanghai +0.03% Shenzen +0.33%

Eur$ 1.1807 CNH 6.6245 CNY 6.6234 JPY 113.24 GBP 1.3111 CHF 0.9816 RUB 57.4289

S&P +0.24% EuroStoxx +0.33% DAX +0.41% FTSE +0.31% SMI +0.30%

Macro :
- Catalans Consider Proclaiming Independence as Soon as Next Week
- Senate Adopts Budget Resolution in Step Toward Tax Overhaul
- Merkel Says May’s Brexit Presentation Didn’t Change Her Stance
- Goldman Sachs Bullish on Emerging-Market Stocks Approaching 2018

Keep an eye on :
- AC FP : Accor Sees FY Ebit at Upper End of EU460M-EU480M Range
- AI FP : Air Liquide Enters JV With Sinopec in China
- AKZA NA : PPG Says Recent Upheaval at Akzo Nobel Not Reigniting Interest
- ATL IM : Atlantia to Talk W/ Criteria on Improved Abertis Bid: Expansion
- BETSB SS : Betsson Third Quarter Revenue 1.6% Below Estimates
- CABK AM : Catalan Separatists Ask Supporters to Pull Cash From CaixaBank
- CBK GY : Commerzbank Is Said to Delay Digitialization Projects: HBT
- DAI GY : Daimler Third Quarter Ebit 2.5% Below Estimates
- DBK GY : Deutsche Bank Alternative Fund Services Bought by Apex Fund
- DTE GY : Sprint, T-Mobile Deal Announcement Is Said to Likely Be Delayed
- DNA FH : DNA 3Q Ebitda Beats Highest Analyst Estimate; Churn Is Growing
- ECONB BB : Econocom Nine Month Revenue 4.9% Above Estimates
- ERICB SS : Ericsson Says Starting to See Some Improvements
- ERICB SS : Ericsson Third Quarter Adjusted Gross Margin Beats Estimates
- FCA IM : Fiat Chrysler Drops as Much as 5.6% on Report of Production Cuts
- FNAC FP : Fnac Darty 3Q Sales Rise 5.8% LFL
- FDR FP : Fonciere des Regions Simplifies Structure, Ups Germany Exposure
- GFC FP : Gecina Raises Outlook, Now Forecasts Rising FY Recurring Net, Sees Full Year Recurring Net At Least +6%
- IHG LN : InterContinental Hotels 3Q To Be ‘Positive Catalyst’: Barclays
- KPN NA : KPN Names Ibarra to Succeed Eelco Blok as CEO in April 2018
- LO24 GY : Lotto24 Shares Fall As Co. Cuts 2017 Billings Growth Guidance
- MEO GY : Metro 4Q LFL Sales Up 0.5%; Total Revenue EU9.2b vs EU9.3b Est.
- ML FP : Michelin Third Quarter Net Sales Match Estimates
- NPRO MO : Norwegian Property Third Quarter Revenue NOK198 Mln
- RYA LN : Ryanair Unionization Backed by World’s Largest Pilot Union
- SMCP FP : Sandro Owner SMCP Prices IPO at EU22/share
- 9984 JP : SoftBank’s Son Aims to Launch More Vision Funds: Nikkei
- S32 LN : South32 Is Said to Study Bid for $1.6b Rio Coal Portfolio
- HO FP : Thales: Nothing New on Railways Signalling, No Bombardier Talks
- LNSX GY : Sixt Leasing Sees Yr Pretax Earnings Around EUR30m Vs EUR31.6m
- RIO LN : Rio Is Said to Hold Talks With Groups on Grasberg Mine Exit
- RWE GY : RWE Is Said to Be Interested in Parts of Uniper: Handelsblatt
- SO FP : Somfy 3Q Sales Climb 10%
- SOW GY : Software AG Confirms 2017 Forecast, 3Q Non-IFRS EBITA Down 5%
- SREN VX : Swiss Re Sees Hurricane, Quake Claims at $3.6B
- TIT IM : Telecom Italia Is Said to Be Open to Spinoff of Landline Grid
- UCB BB : UCB Increases Full-Year Outlook After 9% Rise in 9-Month Revenue
- UNA NA : Unilever Is Said to Get Bids for Spreads Unit From Bain, CD&R
- UN01 GY : RWE Is Said to Be Interested in Parts of Uniper: Handelsblatt
- VIV FP : Vivendi May Challenge Golden Power Use on Telecom Italia: Sole
- VOLVB SS : Volvo AB Says Truck Profitability Hit by Stretched Supply Chain, Volvo Boosts Full Year Europe H/D Truck Market Forecast
- WHA NA : Wereldhave Sees Full Year EPS EU3.40 To EU3.45
- ZURN VX : Zurich Insurance Is Said to Explore Sale of Endsleigh: Sky

>>> Europe : Broker Upgrades & Downgrades - 20th of October 2017

>>> Up
* ASML Raised to Add at AlphaValue
* Barclays Raised to Hold at Berenberg
* GAM Holding Raised to Neutral at MedioBanca, PT CHF15.30
* Saint-Gobain Raised to Buy at Berenberg
* Telefonica Raised to Equal-weight at Barclays

>>> Down
* Allianz Cut to Sector Perform at RBC, PT EU200
* Fresnillo Cut to Neutral at Credit Suisse, PT GBP14.61
* Infineon Cut to Hold at DZ Bank, PT EU23.40
* Sipef Cut to Hold at Bank Degroof Petercam, PT EU66
* SSAB Cut to Neutral at Credit Suisse
* Suess MicroTec Cut to Hold at DZ Bank, PT EU17
* WH Smith Cut to Hold at Stifel, PT GBP21.50

>>> Initiation
* Kering New Buy at Jefferies, PT EU425
* VTG New Buy at Kepler Cheuvreux, PT EU56



>>> Call

>>> PayPal beats by $0.03, beats on revs; guides Q4 EPS in-line,

PayPal beats by $0.03, beats on revs; guides Q4 EPS in-line, revs above consensus (67.25 -0.01)
  • Reports Q3 (Sep) earnings of $0.46 per share, excluding non-recurring items, $0.03 better than the Capital IQ Consensus of $0.43; revenues rose 21.4% year/year to $3.24 bln vs the $3.18 bln Capital IQ Consensus.
  • Highlights:
    • 8.2 million active customer accounts added, with net new actives up 88%
    • 218 million active customer accounts, with more than 17 million merchant accounts
    • 1.9 billion payment transactions, up 26%
  • PayPal processed $114 billion in TPV in the quarter. Approximately 35% of payment volume came through a mobile device and mobile payment volume increased 54% over the same period last year to approximately $40 billion.
  • Co issues guidance for Q4, sees EPS of $0.50-0.52, excluding non-recurring items, vs. $0.51 Capital IQ Consensus Estimate; sees Q4 revs of $3.57-3.63 bln, excluding non-recurring items, vs. $3.56 bln Capital IQ Consensus Estimate.

>>> US After Hours Summary: SKX +22%, TEAM +12%, IMPV +5.1%, MXIM +4%,


After Hours Summary: SKX +22%, TEAM +12%, IMPV +5.1%, MXIM +4%, PYPL +3.4% higher and NCR -10%, TACO -6%, ATHN / ISRG -3% lower following earnings/guidance, DRRX -54% after Ph 3 trial results

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SKX +22.3%, TEAM +12%, CAI +6.6%, IMPV +5.1%, MXIM +3.8%, PYPL +3.4%,

Companies trading higher in after hours in reaction to news: AVGR +27.2% (initiates INSIGHT study to evaluate Pantheris Lumivascular Atherectomy System for treating in-stent restenosis in lower extremity arteries), QURE +7.8% (continued momentum), IMDZ +4.5% (confirms the EMA granted Orphan Drug Designation for G100), REN +2.4% (upgraded to Buy from Neutral at Goldman), OAS +1.3% (upgraded to Neutral from Sell at Goldman), HON +1.2% (ahead of earnings), QD +1% (continued momentum), MU +0.9% (attributed to Appaloosa's David Tepper comments at the Robin Hood conference), SYF +0.9% (ahead of earnings), FL +0.8% and DSW +0.5% (SKX sympathy), ON +0.4% (MXIM sympathy), BIDU +0.3% (Baidu.com signed strategic cooperation agreements with China automotive companies BAIC Group and Xiamen King Long United Automotive Industry)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NCR -10.3%, TACO -5.8%, WERN -4.5% (light volume), PFPT -3.5%, ATHN -3.4%, ISRG -3%, ETFC -2.2% (also to acquire Trust Company of America)

Companies trading lower in after hours in reaction to news: DRRX -54.3% (top-line results from the PERSIST Phase 3 Trial of POSIMIR (SABER-Bupivacaine) did not meet primary efficacy endpoint), BPMX -31% (low cap / thinly traded name; files for $40.25 mln mixed securities shelf offering), AAXN -8.3% (lower after disclosing SEC letter - to review previously filed 10-K/10-Q), CAPR -8.3% (Capricor Therapeutics entered into $14 mln common stock 'at the market offering' sales agreement), DBD -5.7% (following NCR results), CELG -5.6% (announces that the GED-0301 phase III REVOLVE trial in Crohn's disease and the extension trial will discontinue following recommendation from Data Monitoring Committee)

>>> Asian Update

Asia Mid-Session Update: Korean yields continue to rise post Bank of Korea; US dollar and yields rise as Senate passes budget; Japan elections on Sunday

***Asia Summary***
-Asian equity markets opened the session mixed. S&P 500 and Nasdaq futures have risen after the US Senate gained enough votes to pass the budget, which may help pave the way for tax reforms. The Nikkei 225 opened lower following 13 straight sessions of gains, but has since pared losses.
-Nissan has declined by over 1.5%. Following yesterday’s close, the company’s CEO said it decided to temporarily suspend the production of certain vehicles, as the company continues to grapple with the issue of unauthorized vehicle inspections in Japan. The company is also said to have found improper inspections going as far back as 20 years, according to Japanese media. Coupled with the declines in Nissan, shares of Honda have also traded lower.
-In Hong Kong, insurer AIA Group has declined by over 2% on weaker than expected growth in quarterly new business value.
-Following yesterday’s weakness seen in the technology sector, Taiwan Semi has traded flat after reporting Q3 results and issuing guidance. South Korean chip makers are also trading higher. Hynix has gained over 2%.
-South Korean utility services firms, including KEPCO Engineering & Construction, have moved sharply higher following the release of a local public opinion poll, which showed public support for building two new nuclear reactors.
-South Korean 3-year bond yields have continued to move higher on today’s session. Following the hawkish dissenter at yesterday’s BoK meeting, some of the tier 1 brokerage firms have started to move forward their views for rate hikes from 2018. US Treasury yields have moved higher in the Asian session following the Senate’s budget vote.
-At the same time, USD/JPY has gained over 0.4%, amid broad strength in the US dollar. The Kiwi has traded below 70 cents for the first time since May, as the currency has continued to decline following the move by the NZ First Party to form a coalition with the opposition Labour Party.
-Looking ahead, US companies due to report earnings later today include General Electric (GE), Honeywell, Manpower, P&G and Schlumberger. On Sunday (Oct 22nd), Japan is due to hold its general elections. On Thursday (Oct 26th), the ECB is due to hold its monetary policy meeting.

***Speakers and Press***
China
-(CN) China mandates 10 banks for planned US dollar bond denominated issuance (first dollar issuance since 2004); to hold investor meeting in Hong Kong on Oct 25th
-(CN) Shanghai said to plan Free-Trade Port – Chinese Press
-(CN) China NDRC Head: China 2017 GDP to exceed CNY80T, (vs CNY74T y/y) and the GDP growth rate may exceed the official forecast of around 6.5% - Chinese Press
-(CN) China gives sector breakdown for Q3 GDP: Tech +29% y/y, Finance +5.6%, Property +3.9%

Other
-(US) Senate has the votes to adopt budget, which is a step toward tax overhaul
-(JP) Japan Finance Min Aso: Japan companies’ piling up of internal reserves has gone too far; wants corporate reserves to be used for investments and wages
-(GE) Germany Chancellor Merkel: UK PM May’s Brexit stance insufficient at this point; May offered 'significantly' more on Brexit than before, but presentation did not change stance
-(KR) Analysts bring forward Bank of Korea rate hike calls to Nov from 2018 following hawkish dissenter at yesterday’s policy meeting
-(KR) According to a South Korea public opinion survey, 59% support the building of two new nuclear reactors – financial press
-(MY) Malaysia Think Tank MIER said to raise 2017 GDP growth forecast to 5.4% vs. 4.7% July forecast - Malaysian Press; Cites stronger domestic demand and exports.
-(US) Follow Up: Fed Chair announcement unlikely to come this week as President Trump has yet to make up his mind; Advisers said to favor Taylor or Powell – US financial press
-(US) SEMI: North America Sept Billings $2.03B (3-month avg basis), +36% y/y
-(NZ) New Zealand Incoming PM Ardern: Will be ‘very pro-active’ government
-(TW) Zhen Ding Technology: The Apple supplier is said to run factories at full capacity – Taiwan Press

***Asian Equity Indices/Futures (00:30ET)***
- Nikkei flat, Hang Seng +1%, Shanghai Composite flat, ASX200 +0.2%, Kospi +0.5%
- Equity Futures: S&P500 +0.3%; Nasdaq +0.3% , Dax +0.3% , FTSE100 +0.3%

***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1808-1.1858; JPY 112.52-113.31; AUD 0.7829-0.7882; NZD 0.6972-0.7037
- Aug Gold -0.3% at 1,286/oz; Aug Crude Oil +0.2% at $51.38/brl; Sept Copper +0.8% at $3.196/lb
- GLD SPDR Gold Trust ETF daily holdings flat at 853.1 metric tons
-(CN) PBOC SETS YUAN REFERENCE RATE AT 6.6092 V 6.6093 PRIOR
-PBoC OMO: Injects CNY80B in 7 and 14-day reverse repos v CNY140B injected prior in 7 and 14-day reverse repos; Net daily injection CNY60B, net weekly injection CNY560B v CNY240B drain w/w
-(CN) China MOF sells 30-year bonds at 4.28%, bid to cover 2.66x

***US markets on close: Dow flat, S&P500 flat, Nasdaq -0.3, Russell -0.2% ***
- Best Sector in S&P500: Utilities +1%
- Worst Sector in S&P500: Consumer Staples -0.5%
- At the close: VIX 10.05 (-0.02pts); Treasuries: 2-yr 1.535% (-3bps), 10-yr 2.320% (-2.5bps), 30-yr 2.838% (-1bp)

***US Market Summary***
-Stocks moved lower on the open after a wave of risk-off sentiment engulfed markets during the European session, but stock prices along with risk assets recouped most losses into the afternoon. The S&P500 and Dow closed near the day's highs, stretching into positive territory at the end of the session. Before the opening bell in NY, the VIX popped 15% back above 11, but volatility edged off as the day wore on. The Sept Philly business outlook blew through expectations, just as the Empire index did on Monday, while signaling acceleration for the manufacturing jobs market. Treasuries rallied on the risk-off sentiment led by the long end, but ended off their best levels, and gold futures gained for the first time in four sessions. Apple iPhone worries weighed on the tech sector. Consumer staples and energy were also in the red, while healthcare and materials outperformed.

***US Afterhours Movers***
-PYPL Reports Q3 $0.46 v $0.44e, Rev $3.24B v $3.17Be; +3.0% afterhours
-SKX Reports Q3 $0.59 v $0.43e, Rev $1.10B v $1.06Be; +18.6% afterhours

>>> US Close Dow +0.02% S&P +0.03% Nasdaq -0.29% Russell -0.21%

Closing Market Summary: Another Buzzer Beater on Wall Street

Stocks clawed their way back from early weakness on Thursday and managed to reach positive territory for the fifth session in a row. The S&P 500 (unch) and the Dow (unch) both posted new record closes thanks to a final push higher in the final minutes of the session. Meanwhile, the Nasdaq and the Russell 2000 underperformed, losing 0.3% and 0.2%, respectively. 

The S&P 500's technology sector declined by 0.4% on Thursday, with its largest component by market cap--Apple (AAPL 155.98, -3.78)--showing particular weakness. The company fell 2.4% following overnight reports that iPhone 8 orders are weaker than expected and the new Apple Watch is having cellar connection issues in China.

eBay (EBAY 37.29, -0.68) was another notable laggard within the tech space after the e-commerce company issued weak guidance for the fourth quarter; EBAY shares lost 1.8%. On a positive note, software giant Adobe Systems (ADBE 171.73, +18.73) surged 12.2%, hitting a fresh record high, after issuing above-consensus guidance for fiscal year 2018.

The consumer staples space (-0.6%) was the only sector to finish below technology on the day's leaderboard. Phillip Morris (PM 108.15, -4.36), the maker of cigarette brand Marlboro, was the sector's weakest component, tumbling 3.9%, after reporting disappointing profits and revenues for the third quarter and issuing below-consensus earnings guidance for fiscal year 2017.

Meanwhile, health care stocks rallied, extending their gains from the prior two sessions. Within the health care sector--which added 0.6%--Gilead Sciences (GILD 81.59, +1.58) showed particular strength (+2.0%) after the FDA approved the company's lymphoma therapy drug Yescarta.

Wireless giant Verizon (VZ 49.21, +0.56) finished with a gain of 1.2% after reporting upbeat earnings for the third quarter. However, the company's performance was somewhat disappointing considering it opened with a gain of around 3.0%. The lightly-weighted telecom services group added 0.5%.

Financial names finished mixed, leaving the S&P 500's financial sector (+0.2%) slightly higher. American Express (AXP 91.90, -0.18) and Travelers (TRV 133.17, +3.15) embodied the mixed theme; TRV shares climbed 2.4% on better-than-expected top and bottom lines while AXP shares lost 0.2% after announcing that CEO Kenneth Chenault will be stepping down after 16 years at the helm.

Transports finished slightly behind the broader market, evidenced by the Dow Jones Transportation Average (-0.1%), with United Continental (UAL 59.78, -8.21) pacing the modest retreat. The airline plunged 12.1% after disappointing guidance overshadowed its better-than-expected earnings.

In the bond market, U.S. Treasuries advanced on Thursday, but intraday selling pressured the market off its morning high. The benchmark 10-yr yield slipped two basis points to 2.32% after trading as high as 2.35% in overnight action. Meanwhile, the U.S. Dollar Index dropped 0.3% to 93.02.

Also of note, Politico reported in the late afternoon that Fed Governor Jerome Powell is the leading candidate to become the next Fed Chair. President Trump is expected to make his decision before he leaves for an 11-day trip to Asia on November 3.

Reviewing Thursday's economic data, which included the weekly Initial Claims Report, the Philadelphia Fed Index for October, and the Conference Board Leading Economic Index for September:

  • The latest weekly initial jobless claims count totaled 222,000 while the Briefing.com consensus expected a reading of 236,000. Today's tally was below the revised prior week count of 244,000 (from 243,000). As for continuing claims, they declined to 1.888 million from the revised count of 1.904 million (from 1.889 million).
    • The key takeaway from this report, which saw some disruptions in claims taking procedures in Puerto Rico and the Virgin Islands, is that the low level of claims should translate into some lofty nonfarm payroll expectations for October since this report covered the week in which the household survey was conducted.
  • The Philadelphia Fed Survey for October rose to 27.9 from an unrevised 23.8 in September while economists polled by  had expected a reading of 20.0.
    • The key takeaway from the report is that the monthly increase was led by gains in labor market indicators, with the current employment index increasing 24 points to a record-high reading of 30.6.
  • The Conference Board Leading Economic Index decreased 0.2% in September, while economists polled by expected an increase of 0.1%. The prior month's increase was left unrevised at 0.4%.
    • The key takeaway from the report is that the downturn had hurricane fingerprints on it with key negative contributions from initial claims, building permits, and the average workweek.

On Friday, investors will receive just one economic report--September Existing Homes Sales (consensus 5.29 million)--which will be released at 10:00 ET.

  • Nasdaq Composite +22.7% YTD
  • Dow Jones Industrial Average +17.2% YTD
  • S&P 500 +14.4% YTD
  • Russell 2000 +10.7% YTD

FT : European telco chiefs protest over proposed new rules

European telco chiefs protest over proposed new rules
Letter from 30 chiefs says European Parliament changes would deter network investment

The chief executives of 30 of Europe’s largest telecoms companies and equipment vendors have written to heads of state and national telecoms ministers, in a lobbying effort against changes in regulations that they say would deter investment in new networks.

Their letter represents the latest attempt by the industry to get a reform of telecoms regulations back on track, after the European Parliament derailed European Commission proposals this year, which were aimed at deregulating companies to encourage billions of pounds of investment in 5G and full-fibre networks.

The parliament has added various amendments, including proposals around “joint dominance” to tackle potential “oligopolies” in some European telecoms markets. Proposals to lengthen spectrum licences, to harmonise auctions of airwaves and to impose new retail regulation on international calling rates within the bloc are also being objected to by the industry. It had widely supported the commission’s original proposals around the new Electronics Communications Code.

The letter, seen by the Financial Times, has been signed by the chief executives of Deutsche Telekom, BT Group, Orange, Telefónica and other incumbent operators. Telecom Italia’s executive chairman Arnaud de Puyfontaine has signed as have the chief executives of Ericsson and Nokia, who sell the equipment needed to build faster networks. The companies spend a combined £26.6bn a year in Europe, according to the document.

The letter says that the uncertainty introduced into the Electronic Communications Code has turned what looked like a much-needed overhaul of the rules to encourage investment into “bad news for all those who understand the strategic necessity of building a European Gigabit Society”. It even argues that it would be preferable to keep the current rules, long the bane of a sector facing structural decline, rather than adopt the amended proposals.

The document also notes that uncertainty around the proposed reforms has created a “sharply negative” sentiment for investors in telecoms, who are increasingly reticent to invest in companies facing huge spending commitments to build new networks but also more onerous regulation. It says that a deterioration in the investment climate is expected following the European Parliament’s amendments.

The letter was sent ahead of separate meetings of European heads of state and telecoms ministers in Luxembourg next week.

The European Parliament’s proposals to introduce new regulations reflects concerns in countries including Belgium and the Netherlands that telecoms oligopolies are forming at the expense of competition.

A study by Jones Day and Compass Lexecon, commissioned by Vodafone, has criticised the amendments to the Electronic Communications Code for not bringing the framework in line with competition law, regarding significant market power and joint dominance. “It is highly probable that if these criteria are kept in the code, they will generate a high degree of inconsistent regulatory interventions,” the paper concludes.

FT : Police launch raids on 20 City of London businesses

Police launch raids on 20 City of London businesses
Action is part of a crackdown on scams linked to binary options trading

Police revealed on Thursday they had raided 20 businesses in the City of London as part of a crackdown on a boiler room investment fraud, after almost 700 people reported losing more than £18m in the first half of 2017.

The scams involve binary options trading — a form of high-stakes gambling that enables punters to place bets on an outcome in financial markets, such as whether the FTSE 100 index will rise or fall.

Some binary options products are offered legitimately by London-listed spread betting companies such as IG Group and CMC Markets.

However, the police’s focus is on boiler room operations that use high-pressure sales tactics, including cold calls and the promise of high investment returns to dupe people into handing over their money — but then never place trades for these individuals.

A total of 2,605 victims spread across the UK have, on a combined basis, lost £59.4m on binary options scams since 2012, said the City of London Police. Each person had lost £22,811 on average.

The police added that binary options fraud was a growing problem, with 697 people reporting they have lost more than £18m between January and June this year.

As part of efforts to stamp out the scams, the police — together with trading standards officers — raided 20 small and medium-sized businesses on Tuesday.

The action — part of a broader push to uncover boiler room investment frauds thought to be operating out of the City — yielded some “interesting results”, said the police, who cited the discovery of a business that had paid over three months’ rent upfront to its provider and then disappeared.

“Working closely with our partners, we are deterring investment scammers who use City addresses to create an illusion of respectability that plays an important part in persuading people to part with their money,” said Steve Playle, trading standards manager at the City of London Corporation.

European regulators have proposed a clampdown on binary options trading.

UK-based companies selling binary options products are currently regulated by the Gambling Commission, but the Financial Conduct Authority last year proposed bringing this activity under its jurisdiction and restricting them.

At the time, the UK financial watchdog said this form of betting “did not appear to meet a genuine investment need” and was difficult for inexperienced investors to properly understand.

Trading in some binary options is banned in several other countries, including Canada.

FT : Weinstein Company board told of bid interest

Weinstein Company board told of bid interest
Len Blavatnik and Ron Burkle said to have expressed interest

Harvey Weinstein has told the board of The Weinstein Company that Len Blavatnik, the billionaire behind Access Industries, and the supermarket magnate Ron Burkle have expressed interest in exploring a bid for the movie studio.

Mr Weinstein told TWC directors at a meeting on Tuesday, when he officially resigned from the board. He was fired as chief executive last week following reports that he sexually harassed or assaulted multiple women over several decades, with stars such as Angelina Jolie and Gwyneth Paltrow among his accusers.

Mr Weinstein, who has entered an Arizona facility to be treated for sex addiction, has denied that any of his relationships were ever non-consensual.

The TWC board revealed this week that it was in talks with Colony Capital, the investment firm founded by Tom Barrack, over a sale of the company. Colony has also thrown a cash lifeline to TWC, which has been hit by a wave of cancelled projects following the allegations about Mr Weinstein.

It is unclear if Colony will be dislodged by another buyer. “We have several projects in The Weinstein Company library and we are following the situation closely,” said a spokesman for Mr Burkle’s Yucaipa Companies, adding that it had “not made any overtures” for TWC. Mr Blavatnik’s Access Industries declined to comment.

The TWC board is continuing to negotiate with Mr Barrack’s Colony. Mr Barrack has experience of the movie business, having bought Miramax, the company founded by Harvey and Bob Weinstein — Mr Weinstein’s brother and co-founder — from Walt Disney in 2005 for $660m. He later sold it to BeIN Media, the Qatari media group.

If Colony completes a deal, Bob Weinstein is likely to leave TWC, according to people briefed on the matter.

A representative of Harvey Weinstein has expressed concern about the talks with Colony. The representative contacted the board this week to say that all offers for TWC had to be considered and sought clarification on when the agreement with Colony was entered into.

Mr Weinstein, who called into Tuesday’s board meeting, first learnt about the talks with Colony when a friend told him they had seen press reports about the discussions on Monday, according to a person briefed on the conversation.

Both Mr Blavatnik and Mr Burkle are close to Mr Weinstein. Mr Blavatnik recently loaned TWC $45m, which was due to be spent on television productions.

Through Access Industries, Mr Blavatnik, a Ukrainian-born billionaire, has holdings in natural resources, real estate and media, including Warner Music, one of the top global record labels, and AI Films, an independent film finance and production company. He considered bidding for Hollywood studio Metro-Goldwyn-Mayer in 2011.

Mr Burkle, who made his fortune in grocery chains, was an investor in Relativity Media, the film studio that filed for bankruptcy in 2015.

The Weinstein Company has been struggling to ensure its survival in the wake of the scandal surrounding its co-founder, which has led to a wave of director resignations and investigations by police in the UK and New York.

Amazon and Apple have cancelled orders for TV series produced by the studio and top talent have told agents they do not want to be involved with the company. Last week the publisher Hachette closed its Weinstein Books imprint.