>>> Kroger eyed by Ahold Delhaize

Kroger eyed by Ahold Delhaize

The US super market chain Kroger [NYSE:KR] is rumoured to be eyed by its Dutch – Belgian competitor Ahold Delhaize, the Dutch news sites Mena.nl and Iex.nl reported, based on information from press agency Bloomberg.
A tweet from an anonymous Twitter account said that Ahold has hired advisors and is working on a bid of USD 32 per share to acquire Kroger. It’s unsure who is behind the Twitter account and where the information comes from, Mena reported.
A combination of Ahold Delhaize and Kroger would make sense from a geographic point of view, Iex.nl noted. But a merger between the two companies would be more likely than Kroger being acquired by Ahold, the report said, quoting analyst Alan Vandenberghe of KBC Securities.
Matthias Maenhaut, an analyst of ING, said it’s unlikely that Ahold will acquire Kroger, because such a deal would bring too much debts to Ahold.


>>> Asian Update

Asia Mid-Session Update: Australia bond yields lower as retail sales unexpectedly decline; Philippines Sept Core CPI hits 3-year high

***Asia Summary***
-Equities markets in China and South Korea have continued their holidays. Hong Kong markets are also closed today in observance of a national holiday. In New Zealand, the NZX-50 index has traded at a fresh record high.
-Large Japanese retailer Aeon has opened higher on its better than expected H1 operating profit.
-In Australia, retail sales unexpectedly declined in August, and this has put downward pressure on the Aussie and bond yields, despite better than expected monthly trade surplus figures. With the downward revision in retail sales, the data has now declined for 2 straight months.
-Meanwhile, former RBA official Edwards said the central bank could hike rates even if inflation remains below its 2-3% target, as he said very low rates during times when growth is firm invites trouble. The RBA last raised rates in Nov of 2010.

***Key economic data***
-(AU) AUSTRALIA AUG RETAIL SALES M/M: -0.6% V +0.3%E
-(AU) AUSTRALIA AUG TRADE BALANCE (A$) 989M V 850ME
-(JP) Foreigners Buy net of ¥953.3B in Japan stocks (highest weekly purchase since 2015) v ¥923.9B in net sales prior week
-(PH) Philippines Sept CPI M/M: 0.5% v 0.2%e; Y/Y: 3.4% v 3.1%e (highest since April); Core Y/Y: 3.3% v 3.1%e (highest since Sept 2014)
-(NZ) New Zealand FY17 Budget Surplus NZ$4.07B v NZ$1.83B y/y (NZ$363M above forecast); Core Crown Tax Revenue NZ$75.6B, +NZ$5.2B y/y

***Speakers and Press***
-(AU) Former RBA Official John Edwards: RBA could raise rates even if inflation remains below 2-3% target; very low rates during times when growth is firm invites trouble.
-(JP) Japan PM Abe said to pledge to 'speed up' Abenomics - Japanese Press

***Asian Equity Indices/Futures (00:30ET)***
- Nikkei +0.1%, Hang Seng closed, Shanghai Composite closed, ASX200 +0.2%, Kospi closed
- Equity Futures: S&P500 flat ; Nasdaq flat , Dax +0.1% , FTSE100 +0.1%

***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1751-1.1763; JPY 112.70-112.91; AUD 0.7824-0.7865; NZD 0.7147-0.7168
- Aug Gold flat at 1,277/oz; Aug Crude Oil flat at $49.98/brl; Sept Copper +0.3% at $2.964/lb
- GLD SPDR Gold Trust ETF daily holdings flat at 854.3 metric tons

***Equities notable movers***
Australia
-Topbetta Holdings, TBH.AU Q1 Rev up over 170% y/y; +4.1%

Japan
-Aeon, 8267.JP H1 Operating profit above expectations; +1.7%

***US markets on close: Dow +0.1%, S&P500 +0.1%, Nasdaq flat, Russell -0.3% ***
- Best Sector in S&P500: Utilities +1%
- Worst Sector in S&P500: Financials -0.5%
- At the close: VIX 9.63 (+0.10 pts); Treasuries: 2-yr 1.475% (flat), 10-yr 2.330% (flat), 30-yr 2.874% (+1bp)

***US Market Summary***
-US stocks ended mostly higher after the strongest ISM services reading in more than a decade, though the Russell 2000 broke an 8-day streak of gains. US Sec of State Tillerson, responding to an NBC News report that he had called Pres Trump a 'moron' and sought to resign his post, held a press conference to pledge his continued commitment to the Trump administration. The Spanish IBEX finished down 3% as Catalonia headlines continue to weigh on risk sentiment. US Treasury prices declined following the strong US data, pushing up yields. Healthcare names outperformed, with Mylan a leader for the day, while IT, energy and financial names were the laggards.

***US Afterhours Movers***
- ACAD Initiates Phase III Study of Pimavanserin in Dementia-Related Psychosis; +5.3% afterhours
- ZUMZ Reports Sept SSS +9.3% y/y; Raises Q3 $0.45-0.48 v $0.47e, Rev $241-243M v $237Me (prior $0.43-0.48, Rev $236-241M), SSS +6-7% y/y; +4.5% afterhours
- SEAS Reportedly has hired advisors to consider a sale; +3.5% afterhours
- GNW North Carolina regulator approves proposed Oceanwide acquisition of Genworth's NC-domiciled insurance companies; +2.9% afterhours
- CAFD Reports Q3 $0.27 v $0.65e, Rev $27.7M v $25.8Me; Guides Q4 Rev $12-15M v $14.8Me, adj EBITDA $22-25M; -1.5% afterhours
- IMGN Files to offer 13M shares via Jefferies, Leerink and RBC (12% of shares outstanding); -8.1% afterhours

>>> US After Hours Summary: NCLH +4% joining the S&P 500; ZUMZ +8.5% o

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After Hours Summary: NCLH +4% joining the S&P 500; ZUMZ +8.5% on comps/raised guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: ZUMZ +8.5% (raises Q3 comps/sales guidance and reports Sept comps +9.3% vs +6.3% year ago and +7.4% last month)

Companies trading higher in after hours in reaction to news: MOBL +9.3% (Altai Capital disclosed 7.63% active stake; expects to continue to engage in, discussions with members of management and the board), MTW +5% (following CNBC Fast Money mention), ACAD +4.8% (initiates Phase III study to evaluate pimavanserin for the treatment of hallucinations and delusions associated with dementia-related psychosis; FDA grants breakthrough therapy designation to pimavanserin for dementia-related psychosis), PPBI +4.7% (will replace Parkway in the S&P SmallCap 600), SEAS +4.3% (continued strength on reports of possible sale after being approached by Merlin Entertainment), NCLH +3.6% (will replace Level 3 Communications in the S&P 500), CMCM +1.8% (after closing near lows), LC +1.4% (still checking), BRG +1.3% (ticking higher; terminates two At Market Issuance Sales Agreement), FMSA +1.3% (reinitiated after the close at Keybanc), TD +0.4% (to buy back common shares through share repurchase programs in connection with amended normal course issuer bid for up to 35 mln common shares)

After Hours Losers:

Companies trading lower in after hours in reaction to news: GSAT -13.4% (commences offering of $125 mln in shares of voting common stock; files mixed securities shelf offering), EBIO -10.1% (files for $12.5 mln common stock offering), USAU -8.4% (thinly tradfed; to offer and sell shares of icommon stock in 'firm commitment' underwritten public offering), DRAD -7.4% (subsidiary received notice of termination from Philips; co is now conducting an impairment review), IMGN -6.8% (commences 13 mln common stock offering), MNK -3.4% (lower on light volume after being downgraded to Hold from Buy at Canaccord Genuity), EKSO -3.3% (files for 20,534,898 share common stock offering by holders), CATB -3% (modestly pulling back after 40%+ move higher over the past three days), MTDR -2.3% (commences public offering of 8 mln shares of its common stock), AAOI -0.7% (extending today's move lower; also disclosed Loan Agreement)

>>> US Close Dow +0.09% S&P +0.12% NAsdaq +0.04% RUssell -0.28% VIX +1.26%

>>> Another Quiet Day Ends In Another Record Close

It was a quiet day on Wall Street, but that didn't stop the stock market from eking out yet another record close. The S&P 500 (+0.1%), the Dow (+0.1%), and the Nasdaq (unch) finished where they resided throughout the majority of the session--just a tick above their flat lines. However, the Russell 2000 slipped 0.3%, breaking its streak of eight consecutive record closes. 

Drugmaker Mylan (MYL 37.80, +5.27) surged 16.2% on Wednesday after the FDA approved its generic version of Teva Pharma's (TEVA 16.08, -2.74) multiple sclerosis drug Copaxone. Mylan's positive performance helped the S&P 500's influential health care sector (+0.5%) finish ahead of the broader market.

Like health care, the consumer discretionary sector (+0.5%) also outperformed on Wednesday with its top component by market cap--Amazon (AMZN 965.45, +8.35)--bouncing back from two days of losses. Netflix (NFLX 184.45, +5.26) also had a solid showing after UBS raised its target price to $225 from $190. AMZN and NFLX shares added 0.9% and 2.9%, respectively.

The majority of the S&P 500's 11 sectors finished in the green, however, the two most influential groups--technology and financials--did not.

Mega-cap names like Apple (AAPL 153.48, -1.00, -0.7%), Facebook (FB 168.42, -1.54, -0.9%), and Alphabet (GOOGL 966.78, -5.30, -0.6%) weighed on the tech space, overpowering gains from smaller components. Chipmakers managed to settle slightly ahead of the broader market though, evidenced by the PHLX Semiconductor Index (+0.2%).

As for financials, banks like JPMorgan Chase (JPM 96.36, -0.99) and Wells Fargo (WFC 54.96, -0.62) led the retreat, dropping around 1.0% apiece.

The energy sector (-0.1%) finished lower as well, weighed down by the price of crude oil--which dipped below $50.00/bbl despite an upbeat EIA inventory report; the Energy Information Administration reported that U.S. crude inventories declined by 6.0 million barrels (consensus -0.5 million barrels) for the week ended September 29.

In the bond market, U.S. Treasuries finished roughly flat with shorter-dated issues showing relative strength; the yield on the 2-yr Treasury note slipped one basis point to 1.47%. Meanwhile, the benchmark 10-yr yield settled unchanged at 2.33%.

Fed Chair Janet Yellen did speak on Wednesday, but made no mention of monetary policy.

Reviewing Wednesday's economic data, which included the September ADP Employment Change Report, the September ISM Services Index, and the weekly MBA Mortgage Applications Index:

  • The ADP National Employment Report showed an increase of 135,000 in September (consensus 160,000) while the August reading was revised lower to 228,000 from 237,000.
  • The ISM Services Index for September rose to 59.8 from an unrevised reading of 55.3 in August. The consensus expected a reading of 55.3.
    • The key takeaway from the report is that it gives the Federal Reserve some data-based ammunition to raise the fed funds rate in December since the Prices Index increased substantially and hit its highest level since February 2012, mirroring a big jump as well in the Prices Index for the ISM Manufacturing report.
  • The weekly MBA Mortgage Applications Index decreased 0.4% to follow last week's 0.5% decline.

On Thursday, investors will receive the weekly Initial Claims Report (consensus 265K) at 8:30 ET, the August Trade Balance (consensus -$42.6 billion) also at 8:30 ET, and August Factory Orders (consensus +1.0%) at 10:00 ET.

  • Nasdaq Composite +21.4% YTD
  • Dow Jones Industrial Average +14.7% YTD
  • S&P 500 +13.4% YTD
  • Russell 2000 +11.1% YTD

FT : Greg Fleming returns with Rockefeller-backed asset manager

Greg Fleming returns with Rockefeller-backed asset manager
Former Morgan Stanley executive launches new venture to advise ultra-rich clients

The former head of wealth management at Morgan Stanley – once in the frame to succeed James Gorman as the bank’s chief executive – is plotting a comeback on Wall Street, heading a new firm backed by the Rockefeller family.

Greg Fleming has agreed to team up with Rockefeller Financial Services to form Rockefeller Capital Management (RCM), according to an announcement from the parent company on Wednesday. Capital for the firm, which will span asset management and wealth management for rich and ultra-rich clients, as well as advice on their business interests, will come from the Rockefeller family and Viking Global Investors, a Greenwich, Connecticut-based hedge fund that manages about $25bn.

Mr Fleming, who will serve as chief executive, will chip in with his own money, too. The transaction is expected to close in the first quarter of next year.

Within a few years, RCM will be “a formidable player”, Mr Fleming told the Financial Times. “We think the businesses are all fairly fragmented … and we can gain significant share. A lot of people want to work for a private independent firm, especially one with the brand of Rockefeller.”

The move marks a return to the front line of financial services for Mr Fleming, 54, who stepped down from Morgan Stanley last January after it became clear that Colm Kelleher, London-based head of the bank’s institutional services division, was the more obvious short-term successor to Mr Gorman, chief executive since 2010.

Mr Kelleher and Mr Fleming had been rivals to succeed Mr Gorman until October 2015, when Mr Fleming lost out in a rejig in which he was stripped of his role running the smaller investment management division. The effective elevation of Mr Kelleher, who at 60 is a year older than Mr Gorman, was seen as a sign that the longer-term successor would be drawn from a pool including Ted Pick, head of sales and trading, and Dan Simkowitz, who took over investment management from Mr Fleming.

Before joining Morgan Stanley in December 2009, Mr Fleming came close to the top of Merrill Lynch, serving as president and chief operating officer from June 2007 to early 2009. He left after Merrill’s takeover by Bank of America – a deal he helped engineer at the height of the financial crisis.

After leaving Morgan Stanley last year he taught at his alma mater, Yale Law School, and last August joined the board of Putnam Investments, the $166bn-in-assets money manager.

Rockefeller Financial Services was founded 135 years ago as the family office of John D Rockefeller, the oil baron. Its existing asset management business, Rockefeller & Co, based on the third floor of 10 Rockefeller Plaza, had about $10.9bn in assets under management at the end of June, plus another $5.3bn in “advised assets” for which it provides financial planning and tax preparation services.

Mr Fleming said that RCM’s backers plan to make “significant” additional capital investments over the next five years, led by Viking, to allow the firm to broaden its products and services.

He said he had several job offers during his hiatus, but opted for Rockefeller because “I was focused on something more entrepreneurial, something I could lead and grow. I spent a quarter-century in big public companies, I was very much looking for this kind of avenue this time.”

>>> Telecom Italia begins sale of Persidera holding; Lazard, Credit Suisse, Barc

Telecom Italia begins sale of Persidera holding; Lazard, Credit Suisse, Barclays advising

Telecom Italia [TLIT.MI], based in Milan, today started the sale of its majority holding in Persidera, the Italian broadcast group, according to a newswire report this morning.
Persidera has a EUR 350m to 400m value, Reuters reported, citing a source close to the matter, who said pre-marketing is occurring today and Thursday.
Advisors Lazard, Credit Suisse and Barclays have been selected for the sale, Reuters reported, confirming information that Bloomberg had reported.
Representatives from these companies were not abailable to comment immediately, Reuters reported.
Vivendi [VIV.PA] secured antitrust approval from the European Union to take control of Telecom Italia when it vowed to divest Persidera, the article noted.