>>> us Gapping down


Gapping down
In reaction to disappointing earnings/guidance:

  • N/A.

Other news:

  • SRAX -4% (after closing near highs -- up 43% on the day),
  • AIG -2.1% ( expects to report third quarter 2017 pre-tax catastrophe losses net of reinsurance of $2.9 billion to $3.1 billion)
  • IMPV -1.7% (names Aaron Kuan interim CFO and commences CFO Search; Terry Schmid resigned as CFO to pursue other interests )

Analyst comments:

  • JBL -3.3% (downgraded to Sell from Neutral at Goldman)
  • LLY -2.3% (downgraded to Neutral from Outperform at Credit Suisse)
  • WERN -1.8% (downgraded to Underperform from Neutral at BofA/Merrill)
  • SYMC -1.6% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
  • QLYS -1.2% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
  • AGCO -1.2% (downgraded to Underweight from Neutral at JP Morgan)
  • ODFL -0.7% (downgraded to Underperform from Neutral at BofA/Merrill)
  • EMN -0.5% (downgraded to Neutral from Buy at Nomura)

>>> US Gapping up


Gapping up
In reaction to strong earnings/guidance:

  • UAL +4.3%, (provides Q3 investor update; raised its Q3 pre-tax margin guidance and updated other metrics)
  • WMT +2.3%, (reaffirms FY18 guidance; sees FY19 EPS +5% with sales up at or above 3%; adds to share buyback)
  • REVG +1.1%

M&A news:

  • USEG +25.8% (sale of certain non-operated Williston Basin assets; received $2.0 million in cash)
  • PFE +1% (reviewing strategic alternatives for its Consumer Healthcare business)
  • HON +0.7% (announces planned comprehensive portfolio review)

Other news:

  • KALV +75.4% (enters collaboration agreement with Merck (MRK); Merck to pay $37 mln upfront payment, additionally take 9.9% stake through private placement at $8.50/share)
  • ANAB +57.1% (announces positive proof-of-concept data for ANB020)
  • PSDV +12.3% (enters strategic collaboration agreement with Nicox to develop sustained release drug to lower intraocular pressure in patients with glaucoma)
  • REPH +10.6% (presents clinical efficacy data from its Phase III study evaluating intravenous (IV) meloxicam 30mg)
  • OVID +8.2% (receives orphan drug designation from the U.S. FDA for OV101)
  • ICHR +5.9% (entered into 'substantial' agreement to produce liquid delivery systems for one of its key customers)
  • NVDA +4.2% (announces new Drive PX Pegasus AI hardware that enables fully autonomous (level 5) driving - TechCrunch)
  • ATRS +4% (enters into a definitive asset purchase agreement to sell the worldwide rights, including certain fixed assets, for the ZOMAJET )
  • ALDX +2.6% (announces new clinical data for ADX-102 from recently completed Phase 2 clinical trials of dry eye disease and allergic conjunctivitis), CLVS +1.8% ( submitted sNDA to the FDA for rucaparib as maintenance treatment of patients with recurrent epithelial ovarian, fallopian tube, or primary peritoneal cancer who are in a complete or partial response to platinum-based chemotherapy)
  • DXC +1.2% (to acquire Logicalis SMC)
  • REVG +1.1% (announces an underwritten public offering of 10,000,000 shares of common stock by certain selling stockholders)
  • AGN +1% (FDA has accepted the NDA for ulipristal acetate)

Analyst comments:

  • ABEO +4% (initiated with a Buy at Citigroup)
  • PANW +2.8% (upgraded to Overweight from Equal-Weight at Morgan Stanley)
  • RBS +2.5% (upgraded to Neutral from Underperform at Credit Suisse; upgraded to Neutral from Sell at Citigroup)
  • RIG +1.6% (initiated with Buy ratings at Deutsche Bank)
  • TSM +1.5% (upgraded to Overweight from Neutral at JP Morgan)
  • DVN +1.4% (upgraded to Buy at Jefferies)
  • DO +1.3% (upgraded to Neutral from Sell at FBR & Co)
  • TSLA +1.2% (target raised to $379 from $317 at Morgan Stanley)
  • LYG +0.8% (upgraded to Outperform from Neutral at Credit Suisse)
  • CXO +0.8% (upgraded to Buy at Jefferies)
  • CAT +0.7% (target raised to $158 at Goldman - new street high)
  • CLB +0.7% (initiated with Buy ratings at Deutsche Bank)
  • HAL +0.5% (initiated with Buy ratings at Deutsche Bank)

>>> Refresco October approach not preceded by talks

Refresco October approach not preceded by talks (MegerMArket)
10 OCT 2017
PAI’s latest takeover approach for Refresco [AMS:RFRG] was not preceded by deal negotiations, a person familiar with the matter said.
The Refresco board has no specific timeline for its review of the offer and is already busy with the Cott deal, but it strives to be transparent and “cannot sit on the PAI offer”, the person argued. It is therefore aiming for an announcement “in the near future”, he said, without elaborating.
On 3 October, Refresco announced it would review options after the receipt of a new EUR 1.6bn merger proposal. The Dutch bottling group rejected an earlier EUR 1.4bn possible cash offer from PAI in April and has since announced a planned USD 1.25bn takeover of Cott’s [NYSE:COTT] bottling business. It has had no informal talks of any kind with the French private equity firm over this time period, the person familiar said.
Spokespeople for PAI and Refresco declined to comment on the matter.
Refresco’s board in the PAI bid review is using the same advisers that work on the Cott acquisition, the person said. JP Morgan is advising on that deal.
Any PAI bid would be subject to various conditions, according to the announcement. These conditions would not be “out of the ordinary” but rather standard conditions relating to due diligence and the like, the person said without elaborating further.
As reported previously, activist investor Guy Wyser-Pratte argued against the Cott acquisition ahead of the Refresco EGM that eventually approved it last month, claiming that it served as a takeover defence.
However, some analyst research indicates that PAI’s EUR 1.6bn potential offer does not fully pay for the purchase of Cott, Wyser-Pratte told this news service. “PAI still has some room [to improve its offer],” Wyser-Pratte said, arguing for a EUR 22/share deal value.
The EGM vote indicates that investors believe in the Cott deal’s value for Refresco, he noted. Investors representing 78.9 % of ordinary shares voted at the Cott deal EGM, of which 99.5% approved the acquisition. Still, the bottling group owes shareholders a fiduciary duty to look at PAI’s approach properly, Wyser-Pratte argued.
Wyser-Pratte still hasn’t been in touch with Refresco directly, and it seems its arguments about Cott didn’t get much traction with other shareholders, the person familiar said. Refresco started planning the Cott deal well before it was first approach by PAI, he noted.

(CNBC) Bill Gross of Janus blames US Fed for 'fake markets'

Bill Gross of Janus blames US Fed for 'fake markets'
  • "I think we have fake markets," Bill Gross said at a Janus Henderson event.
  • Gross reiterated his warning that Fed Chair Janet Yellen and other global policy makers should not rely on historical models such as the Taylor Rule and the Phillips curve "in an era of extraordinary monetary policy."
Influential bond investor Bill Gross of Janus Henderson Investors said on Monday that financial markets are artificially compressed and capitalism distorted because of the U.S. Federal Reserve's loose monetary policy.

"I think we have fake markets," Gross said at a Janus Henderson event.

Investors should brace for higher Treasury bond yields as the Fed begins to unwind its quantitative easing program but yields will edge up "only gradually," he said.

Gross, who oversees the $2.1 billion Janus Henderson Global Unconstrained Bond Fund, said the Fed's loose monetary policy had resulted in investors chasing yield and thus producing tight corporate spreads everywhere around the globe.

"Even China and South Korea - perfect examples of the risk trade - are at very narrow (corporate spread) levels. There is no real advantage in the global marketplace. Everything is so tight, it is hard to pick a winner from a group that is fake."

Gross reiterated his warning that Fed Chair Janet Yellen and other global policy makers should not rely on historical models such as the Taylor Rule and the Phillips curve "in an era of extraordinary monetary policy."

Economists John Taylor and A.W. Phillips devised models for guiding interest-rate policy based, respectively, on inflation and the unemployment rate. Those models disregard the importance of private credit in the economy, according to Gross.

>>> Electric mobility: Groupe Renault invests in the share capital of Jedlix, a

Electric mobility: Groupe Renault invests in the share capital of Jedlix, a start-up specialized in smart charging

>>> What to look at today - 10th of October 2017

Dow -0.06% S&P -0.18% Nasdaq -0.16% Russell -0.44%
US Market closed lower. energy (+0.3%), utilities (+0.1%), real estate (+0.1%), and materials (unch)Tech (+0.2%) Health care -0.7%, Financials -0.4%, Banks will kick off earning season reporting this week. According to FactSet, S&P 500 earnings are expected to increase just 2.8%, down from an estimated growth rate of 7.5% on June 30. WMT+1.9% top performer after BArron's article this Week end. US after Hours, AIG -1.6% following Q3 catastrophe loss estimate update... CXO / DVN higher following analyst upgrades, while NBL / CRZO / CHK lower following analyst downgrades. Asian Market, opened mixed, with the Kospi coming back from holiday break rising 1.3% at the open (Samsung especially strong ahead of Friday earnings) and Chinese markets lower after a strong day yesterday. Currencies were muted in the first part of the session before broad dollar weakness took hold. North Korea continues to be cautiously eyed for its next provocation with top possibilities being sometime today, on its Party Founding Day or on Oct 18th when China holds it 19th National Congress of the Communist Party. BOJ Gov Kuroda affirmed that he expects CPI to pick up pace towards 2% target; Will maintain QQE with YCC for as long as needed to reach 2% inflation in stable manner.

Nikkei +0.64% Hang Seng +0.44% CSI -0.41% Shanghai +0.10% Shenzen +0.57%

Eur$ 1.1778 JPY 112.55 CNH 6.5825 CNY 6.5930 GBP 1.3171 CHF 0.9782 RUB 58.1285 WTI 49.66 +0.16%

S&P +0.08% Eurostixx -0.20% Dax -0.12% Ftse -0.03% smi -0.08%

Macro :
- Catalans Are Said to Approach Socialists With Bid to Oust Rajoy
- New ECB NPLs Rules Could Hurt Italian Companies: Calenda to RAI
- Grand Paris Metro Project May Be Downsized, Le Monde Says
- Most Food Retailers Lack Scale to Compete With Amazon: Barclays

Keep an eye on :
- ABE SM : Abertis to Move Legal Base to Madrid From Barcelona
- ABE SM : Atlantia Bid for Abertis Acceptance Period Extended to Oct. 24
- ALPH SW : Alpiq Buys British Railway Contractor Lundy Projects; No Terms
- AMZN US : Amazon Is Said to Consider Serious Bid Against YouTube: CNBC
- AMZN US : Amazon’s EU Tax Bill May Lead to Additional U.S. Taxes: FT
- ARCM SS : Arcam Plans Preferential Rights Offer of About SEK986m
- BATS LN : Philip Morris, Altria Trade Higher as 3Q Earnings Dates Approach
- BLT LN : Elliott Is Said to Be Meeting With BHP Shareholders: Reuters
- CA FP : Carrefour Set For ‘Major Clean-Out,’ Raised to Buy: Natixis
- CNA LN : Centrica CEO Iain Conn Buys 100,000 Shares at GBP1.731 Each
- CDI FP : Christian Dior: 9-Month Organic Sales Growth 12%
- COL SM : Inmobiliaria Colonial to Move Registered Office to Madrid
- GIVN VX: Givaudan 3Q Sales Beat Estimates; Company Confirms 2020 Targets
- ISAT LN : Inmarsat Gets U.K. Authorization for EAN Ground Stations
- ISP IM : Goldman Sachs Intl to Offer 150M Intesa Sanpaolo Ordinary Shrs
- MC FP : LVMH 3Q Sales Beat Estimates
- MC FP : LVMH’s Strong Growth Sustained, Should Be Taken Well: Barclays
- MRL LN : SeaWorld Jumps as Much as 5.3%; Call Options Active
- NOKIA FH : Nokia to Reduce Up to 310 Jobs at Technologies Division
- NOKIA FH : Finland Provides $1.5b Backing for Verizon Order From Nokia
- PETS LN : KKR Sells 61m Pets at Home Shares Raising About GBP119m
- QIA GY : Qiagen, Centogene in Bioinformatics Pact for Genetic Diseases
- SPM IM : Saipem Wins $350m of Contracts in Chile and Mexico
- SCR FP : Scor Sees Costs of Harvey, Irma, Maria, Mexico at EU430M
- HO FP : Thales Sets up Artificial Intelligence Hub in Montreal: Figaro
- UBER IPO : SoftBank Deal With Uber Is Said to Encounter Potential Delay: FT
- UBER IPO : Uber Is Said to File An Appeal Against Ban in London: FT
- DG FP : Vinci Unit Wins Contract to Build TMEP Oil Pipeline in Canada
- VIV FP : Vivendi, Mediaset May Reach Accord in 15-30 Days: Les Echos
- WTB LN : Whitbread Says Costa Purchases 49% of South China JV for GBP35m

>>> Europe : Brokers Upgrades & Downgrades - 10th of Octobre 2017

>>> Up
* BME Raised to Sector Perform at RBC, PT EU30
* Carrefour Raised to Buy at Natixis
* Dustin Raised to Buy at SEB Equities, PT SEK79
* Lloyds Raised to Outperform at Credit Suisse
* RBS Raised to Neutral at Credit Suisse
* Siemens Gamesa Raised to Buy at Goldman, PT EU15
* Stolt-Nielsen Raised to Buy at Pareto Securities, PT NOK140

>>> Down
* Daimler Cut to Hold at M.M. Warburg
* HSBC Cut to Underperform at Credit Suisse
* Imperva Cut to Market Perform at William Blair
* LDC Cut to Add at Portzamparc, PT EU130
* Nordex Cut to Sell at Goldman, PT EU8
* Saras Cut to Neutral at Macquarie
* TF1 Cut to Neutral at Exane
* Wacker Neuson Cut to Hold at Bankhaus Lampe

>>> Initiation
* ISS New Buy at Jefferies, PT DKK290
* LiDCO Group New Buy at N+1 Singer, PT 14p
* Sacyr New Hold at Mirabaud Securities, PT EU2.38

>>> Call
>> Stock
* Osram Replaces ThyssenKrupp On Bankhaus Lampe’s Alpha List