Trump Says Apple CEO Has Promised to Build Three Manufacturing Plants in U.S.
Apple declined to comment on president’s remarks, which didn’t include where or when plants would be built
President Donald Trump on Tuesday said in an interview that Apple Inc. Chief Executive Tim Cook has committed to build three big manufacturing plants in the U.S., a surprising statement that would help fulfill his administration’s economic goal of reviving American manufacturing.
Mr. Trump, in a 45-minute interview with The Wall Street Journal, said Mr. Cook promised him Apple would build “three big plants, beautiful plants.” Mr. Trump didn’t elaborate on where those plants would be located or when they would be built.
“I spoke to [Mr. Cook], he’s promised me three big plants—big, big, big,” Mr. Trump said as part of a discussion about business-tax reform and business investment. “I said you know, Tim, unless you start building your plants in this country, I won’t consider my administration an economic success. He called me, and he said they are going forward.”
Apple declined to comment.
Mr. Trump’s comments were some of the first he has made regarding Apple manufacturing since assuming the presidency and revives pressure on the world’s largest company by market value to move manufacturing operations from Asia to the U.S.
Apple faced criticism from Mr. Trump last year on the campaign trail for outsourcing the production of its iPhones and other devices to factories in China. After Mr. Trump won the election, he said in Time magazine that he told Mr. Cook that he wanted “Apple to build a great plant, your biggest and your best, even if it’s only a foot bigger than some place in China.”
Apple has said it supports about two million jobs in the U.S., including its own employees and those of suppliers, app developers and entrepreneurs who offer products across its devices. The company directly employs 80,000 people in the U.S.
In May, Apple said it planned to create a $1 billion fund to invest in U.S. companies that do advanced manufacturing. It has committed $200 million from that fund to Corning Inc.’s glass-making facility in Harrodsburg, Ky.
“We’re looking at this thing deeply,” Mr. Cook said during an appearance on CNBC when he announced the new fund. “How do we grow our employee base? How do we grow our investor base? How do we employ [in] manufacturing?”
A small share of Apple’s products are made in the U.S. by contract manufacturers. Flex Ltd. makes Mac computers in Austin, Texas, and Quanta Computer Inc. produces Macs in Fremont, Calif. However, the overwhelming majority of Apple products are assembled in China, primarily by Foxconn Technology Group, which manufactures Apple’s iPhone and other products.
Mr. Trump also said Tuesday that Foxconn plans to build a big plant in the U.S. and is strongly considering putting it in Wisconsin. The Wall Street Journal reported this week the Taiwan-based company is nearing a decision to invest in a manufacturing facility that would produce display panels for television sets. It could hold an event in Washington, D.C., as soon as next week regarding those plans.
In an emailed statement earlier this week, Foxconn said it was reviewing “potential locations for establishing manufacturing facilities in the U.S.” but declined to name them.
In Tuesday’s interview, Mr. Trump said people in New York and other states without jobs will have to move to states like Wisconsin, Iowa and Colorado that are adding manufacturing.
“You’re going to need people to work in these massive plants,” Mr. Trump said. “…I’m going to start explaining to people: When you have an area that just isn’t working like upper New York state, where people are getting very badly hurt, and then you’ll have another area 500 miles away where you can’t get people, I’m going to explain, you can leave. It’s OK. Don’t worry about your house.”
Building three manufacturing plants would be unprecedented for Apple as it only has one plant of its own currently in Cork, Ireland, where it has operated since 1980 and benefits from lower taxes on overseas profits. Apple instead primarily relies on contract manufacturers such as Foxconn, Pegatron Corp. , Wistron Corp. and others to make iPhones, iPads and Macs.
Under Mr. Cook, Apple has built one of the business world’s most sophisticated supply chains, primarily in Asia where it sources parts ranging from chips to memory. The parts are sent to manufacturers in China which assemble more than 200 million iPhones annually. Apple’s manufacturing prowess has helped the company achieve gross margins—a closely watched measure of profitability after manufacturing costs—of about 38% and helped it rake in more than 90% of the world’s smartphone profits.
Jason Dedrick, a professor focusing on the globalization of information technology at Syracuse University, said in December that forcing Apple to shift manufacturing to the U.S. could put it at a competitive disadvantage to rivals like Samsung Electronics Co. He estimated that assembling iPhones in the U.S. would add $30 to $40 in production costs to each device. He would raise that total to $80 an iPhone if components like the processor, memory and display were also made in the U.S.
Mr. Dedrick said that if Apple lost competitive ground to rivals, it could put some of Apple’s high-paying U.S. jobs in marketing and engineering at risk. “You have to ask: Do you want to put well-paid engineers out of work because you created policies to create assembly jobs?” Mr. Dedrick said.
Apple, which is expected to announce second-quarter earnings next week, stands to benefit as much as any U.S. corporation from the Trump administration’s tax-reform proposal, which would slash business taxes and grant a one-time tax holiday on corporate cash brought home from overseas. It would allow Apple to bring back about $240 billion in cash, cash equivalents and marketable securities held by foreign subsidiaries.
CS:
Aalberts +2-3% revs ahead €1.368bn vs cons €1.303bn, EPS and EBITA better
Accor +1-2% EBIT €226m vs cons €194m, kept FY guidance
Aena +1% Revs, EBITDA and net income all slightly ahead
Airbus -2-3% 3% EBIT miss and free cash flow inline
Alten M/P 1H revenue inline, guidance reiterated
Allianz +2-3% Pre-announced, profit and total revs 9% ahead
AB Inbev +2% Q2 Earnings beat estimates, see promising H2
Aperam -2-3% EBITDA $169m, cons US$173m, guidance for Q3 to be weaker
Arcadis M/P Q2 Net revenue 1% ahead, org growth flat
Aveva -3% Schneider have bought ASCO Power Technologies
AstraZeneca -10% Imfinzi did not meet the primary endpoint
BASF +2% Numbers mixed and co have raised guidance
BATS +1% 1H ADJ OPER PROFIT GBP2.84B, EST. GBP2.83B
Bayer R Adj EBITDA EU3.06B est EU2.99B
Be Semi +3-5% Q2 Revenues ahead, guidance for Q3 better
Bodycote +3% EBIT 6% beat, ugraded FY guidance
Britvic +1% 3Q Revenue Up 6.5%, Volume Up 2.3%
Capgemini +1% H1 rev EU 6.41bln, confirms momentum
Clariant +1-2% H1 Sales 3.13bln cons 3.13bln, merger on track
Dassault Avi +1-2% Orders 1.4bln CS 1050, Sales 2.05 CS at 1.7bln
Danone +1% Earnings beat as whitewave provide boost
Deut Bank -3-5% Revs weak, CET1 ok, leverage weaker
Deut Boerse -2-3% Guiding towards the bottom end of the range
Dialog Semi -1-2% Q2 all fine but Q3 guidance light
Elior -5% CEO Salle to step down, interim CEO not well known
Electrolux -1% US peer WHIRLPOOL fell -4.5% after-hrs on cut in forecast
Eramet +2% H1 Revenue rose 31%, reduction in net debt
Foxtons -10-15% EBITDA down 47% YOY, Both sales and letting poor
Generali +1-2% Positive read from Allianz pre-announcement
Glencore -2-3% Q2 production weaker, guidance revised down
Ingenico M/P H1 results already announced with the Bambora acquisition
Intu -1% EPRA NAV at 403p vs 404p previously
Ipsen +2-3% Revs 4% beat, Core EBIT 2.5% beat, EPS 2% light
Just Eat -1-2% Rev guidance upped, profit guidance unchanged
Land Secs +1% Sale of 20 Fenchurch Street and cash return
Ladbrokes +3-5% Digital inline, retail weak, upgrade to group synergies
Lancashire -1% Q2 Net Oper. Profit 20% ahead of CS, top line decline
Lloyds +2-3% 2Q UNDERLYING PBT GBP2.41B, EST. GBP1.98B
Lonza +0.5% CS UPGRADE to OUTPERFORM (Increased confidence in margins)
LVMH -1-2% Sales inline, F&LG margins good, not enough for upgrades
M&B +1-2% No's better, LFL +2.5% in last 10 weeks
Mediaset Esp M/P Strong cost controls offset ad spend
Miners UNCH Copper UNCH, Brent +0.25%, Iron Ore -0.30%, China -0.30%
Mitie +2% Q1 inline with expectations, FY guidance unchanged
Mittal -3-4% 2Q EBITDA $2.11B est $2.20B, good performance into numbers
Moncler +1-2% H1 adj EBIT 10% beat, revs 2% beat
Nestle -1% See's FY organic growth at lower end of 2-4% range
Nexans UNCH Sales 2% light but profit inline- guiding to better 2H
Nokia UNCH Q2 Sales EU 5.63bln est EU 5.62bln, margins better
Ontex M/P Q2 adj ebitda €74.7m vs cons €76.7m, confirms FY
Orange +2% Q2 rev EU 10.21bln est EU 10.1bln, confirms 2017 targets
Osram UNCH 3Q revs 1.06bln cons 1.04bln, EBITDA light
PGS +3-4% Revs 15% ahead, EBITDA 45% ahead
Rentokil +2-3% PBT in line, Organic growth better
Red Elec +0.5% H1 EBITDA 769.7m cons 769.8m
Relx +0.5% H1 rev GBP 3.72bln est GBP 3.68b, Plans GBP 200m buyback
Repsol +1% Low quality beat, net debt lower
Roche +2-3% H1 Sales CHF 26.34b est CHF 26.13b, raises 2017 outlook
Royal Dutch +2-3% 3.6bn v est $3.36bn, cashflow strong
Schneider +4-5% Solid H1 figs with org growth +2.8%. Raises FY targets
Scor -2-2% Halved the size of their buyback, combined ratio higher
Sika -1-2% Sales inline, sowdown in Q2 vs Q1
Sky M/P FY Rev GBP 12.92bln est GBP 12.99bln. EPS 61.4p est 57.7P
S&N +0.5% H1 Rev $2.34bln est $2.33bln
Schroders +2% PBT 3% ahead, AuM £418.2b (cons 407.3b).
Statoil +1% Adjusted EBIT 3% ahead of cons, net debt reduction better
St James +2% Net flows 11% beat vs consensus, AUM ahead
Suez -1% 3% EBIT miss vs cons, bottom line a big miss
Sulzer +2% 1H sales 1.43bln vs cons 1.47bln, confirms FY
TechnipFMC +3% Adj EBITDA ahead, synergies on track, divi confirmed
Telefonica +2% 2Q rev EU12.96b est EU 12.92bln, guidance reiterated
Thom Cook +1-2% Rev growth good, positive momentum continues into winter
UCB +2-3% Headline revs 2-3% ahead cons, increased guidance
Vallourec +2-3% Q2 EBITDA +E3m v Cse –E19m, guidance for FY revised up
Verbund -1% H1 EBITDA 2% miss vs cons, net 6% miss
Vontobel M/P Results inline, focus remains on Capital Markets Day
Zurich +1-2% Positive read from Allianz pre-announcement
RBC PRE-MKT INDICATIONS
*AAL: +3% H1 EPS light but focus on resumption of dividend.
*AB IBEV: +1% Q2 earnings and sales beat, H2 outlook positive.
*ACCOR: +4% H1 EBIT 16% beat, ReVPAR growth ahead, FY EBIT target at top end.
*AENA: +1% H1 numbers small beat, but sales miss in aeronautical & real estate.
*AIRBUS: -3% Q2 aj EBIT light, strong into numbers.
*ALLIANZ: +3% Q2 beat and raising operating profit guidance.
*APERAM: -2% Q2 results miss, EBITDA touch light, weaker outlook.
*ASTRAZENECA: -17% Q1 results solid, Nexium/Tagrisso +'ve, Mystic Combo trial failed.
*BASF: 0% Q2 adj EBIT beat FY outlook raised, in line with expectations.
*BATS: 0% H1 operating profit and revenues inline.
*BAYER: -1% Q2 underlying EBITDA -2%, FY targets cut.
*BODYCOTE: +4% H1 rev beat across the board, org sales in line.
*BRITVIC: +3% Q3 trading statement strong, revenues +6.5% for Q3.
*CASINO: +1% H1 EBIT inline, raising EBIT guidance due to tax credit.
*CLARIANT: +1% FY op profit in line, FY guidance confirmed, merger on track.
*CMCX: +3% Q1 rev per client +9%, strong set of results.
*DANONE: +1% H1 underlying LFL sales +0.4%, FY guidance confirmed.
*DBK: -4% Q2 reve miss, FICC weak, FY revenue guided lower.
*DB1: -4% Q2 revenue miss, FY earnings guided lower.
*DIAGEO: +2% FY sales beat, margin targets raised.
*GLENCORE: -2% Q2 production light across the board, prod guidance downgraded.
*INDIVIOR: +2% Q2 numbers beat, FY guidance raised.
*JCDECAUX: -2% H1 net miss, FY outlook raised.
*JUST EAT: +4% H1 numbers beat, FY rev guidance upgraded.
*KAZ MINERALS: +3% production beat across the board, copper strong.
*LANCASHIRE: +1% Q2 net income beat, driven by higher investment return.
*LLOYDS: +2% H1 ahead, NII beat, NIM guidance better.
*LVMH: +1% H1 sales beat, perfume & cosmeti
TTAL: -1% Q2 sales ahead but EBITDA miss focus, travel & arrive.
*MITIE: +1% Q2 numbers in line, FY guidance unchanged.
*MONCLER: +2% H1 rev 2% ahead, EBIT 6% beat.
*NESTLE: -3% H1 sales disappointing, guiding lower half of FY sales range.
*NEXT: +1% H1 PBT in line, FPS beat.
*NOKIA: +2% Q2 net sales touch better on AAPL deal.
*ORANGE: +3% Q2 adj EBITDA ahead, FY targets confirmed.
*RED ELECTRICA: 0% H1 aj EBITA 3% beat, FY org sales guidance raised.
*RENTOKIL: +1% H1 numbers in line, no negatives in the numbers.
*REPOSL: 0% Q2 results low quality beat, driven by lower corporate costs.
*ROCHE: +2% H1 core earnings beat, FY outlook raised.
*SCHNEIDER: +4% buys ASCO POWER TECH for $1.25B.
*SCHRODERS: +2% AUM £418.2B better, CEO sees headwinds.
*SCOR: +1% Q2 results in line, share buyback announced.
*SHELL: +1% Q2 beat on earnings, cash slightly better.
*SKY: 0% FY adj basic EPS beat, Q4 new customer demand subdued.
*ST JAMES PLACE: +2% H1 results strong, flows well ahead.
*STATOIL: +2% Q2 net income beat, better cash flows & lower costs.
*SUEZ: -2% H1 results slight miss @ op level, FY targets maintained.
*TECHNIP: +2% Q2 rev & net income ahead, FY guidance raised.
*TELEFONICA: +2% Q2 OIBDA ahead, FY margin guidance reiterated.
*THOMAS COOK: +1% FY in line, positive momentum into winter.
*TOTAL: +1% Q2 adj net ahead, dividend ahead.
*UCB: +3% strong earnings, raising FY guidance, Keppra sales ahead.
*VEOLIA: -1% negative read from SUEZ.
*VONTOBEL: -1% H1 net profit light, AUM CHF146.5B.
*WEIR: -1% H1 results tad light, net debt touch worse.
*WIRECARD: +3% payment guarantee for credit card payments, FY confirmed.
Shore
TATE & LYLE - encouraging start to yr,volumes & profit ahead of prev yr.....+1%
SHELL - PBT beats estimates $3.6bn vs est $3.36bn,LNG sales +20%............+2%
JARDINE LLOYD - revs +11%,PBT +12% £100m,EPS +104%,margins maintained.......+2%
SOPHOS - Q1 ahead of expec,billings +16%,revs +14%,reaffirms outlook........+2%
BONMARCHE - Q1 in line,sales +7.6%,LfL+4.2%,FY expectations remain unch.....UNCH
FOXTONS - H1 revs -15%,PBT -64%,trading conditions remain challenging.......-2%
SKY - revs +10% £12.9bn,strong results in Europe,EPS +4%,op.pft +8%.........+1%
RENTOKIL - ongoing rev+16%,op.profit +13%,France difficult,to meet FY expec.UNCH
DIAGEO - FY sales a beat,raises 3yr margin improvement......................+1%
VESUVIUS - H1 "significantly ahead ",cautious on H2 steel production........+2%
MITCHELLS & BUTLER - Sales +3.1% but margins lower due to cost pressure.....UNCH
COUNTRYSIDE - remains on track,3Q completions +41% & record fwd order book..+3%
LAND SEC'S - returning £475m 60p/share post sale of property................+2%
ST.JAMES PLACE - net inflows +40%,confident outlook and raising divi........+2%
WEIR - H1 revs 1.09b.H1 divi 15p.To deliver strong rev,pft growth in 2017...+2%
BODYCOTE - H1 rev 345.7m(Est345.3m).Divi 5.3p.Sees full year at upper end...+3%
BRITVIC - Q3 revs 384.6m.Sees Fy ebitda in line with market expectations....UNCH
RELX - H1 ptp 1.07b.Rev 3.72b(Est3.68b).Plans £200m buyback in H2...........+2%
LANCASHIRE - Q2 combined ratio 69.8%.H1 divi 5c.H1 book value /shr $6.23....+1%
SMITH&NEPHEW - H1 rev $2.34b(Est2.33b).H1 op pft $414m.Fy guidance on track.+1%
INCHCAPE - H1 rev 4.46b.Divi 7.9p.Given recnt M&A pipeline,no further bb....-1%
COUNTRYWIDE - Sees fy results,leverage within range of estimates............UNCH
SCHRODERS - H1 ptp 342.8m.Aum 418.2b.Net inflows 800m.Divi 34p..............UNCH
DAILY MAIL - Keeps fy outlook amid challenging conditions...................UNCH
JUST EAT - Raises fy guidance to between 500-515m.......................
MainFirst Pre Mkt Indications
*LVMH-Rev 19.7b(19.46),NI 2.12b(2.15),W&S/F&LG +ve,P&C,SR,W&J -ve....+1%
*STATOIL-NI 1.29b(1.03),Dividend 22c,Capex outlook unch at $11b......+1%
*ROCHE-Sales 26.34b(26.13),OP 10.14b(9.86),EPS 8.23(8.04)............+2.5%
*CLARIANT-Sales 3.13b(3.13),Ebitda 482m(461),Ebit 344m(310)..........+0.5%
*AIRBUS-Rev 15.7b(15.97),Ebit 859m(878),A320NEO ramp up tough........-4%
*DBK-NI 447m(311),Rev 6.62b(7.1),CET1 Ratio 14.1%,mixed comments.....-1%
*CAPGEM-H1 Rev 6.41b(6.4),OP 672m(670),NI 375m(360.5),Q2 OG +ve......+1%
*NESTLE-H1 Sales 43.02b(42.8),OP 6.8b(6.67),FY OG at low end.........-2%
*ARCELOR-Sales 17.24b(16.76),Ebitda 2.11b(2.2),Capex 2.29b 2017......-2%
*BASF-Sales 16.26b(16.29),Ebit 2.25b(2.19),Sees higher FY Ebit.......-0.5%
*NOKIA-Sales 5.63b(5.62),OP 574m(460.8),EPS 8c(5),NW margin 8.2%.....+1%
*UCB-H1 Rev 2.2b(2.17),Sees FY Rev 4.35-4.45b(4.37),Ebitda ok........+2%
*ALLIANZ-Q2 Rev 29.99b(27.42),NI 2b(1.71),OP near upper end..........+2%
*SCOR-Q2 NI 153m(148.6),ReV 3.784b(3.68),Cancels b/b €200m...........+1%
*TELEFONICA-Net Income 1.6b(778),OIBDA 4.16b(4.13),Raises o/l........-2%
*ACCOR-H1 Net 77m(95),Ebit 226m(194),Rev 922m(909),FY inline no U/G..-1%
*SUEZ-H1 Rev 7.53b(7.68),Ebit 594m(607.8),Sees FCF of €1bln..........-1%
*ORANGE-Ebitda 3.38b(3.31),Rev 10.21b(10.1),Confirms 2017 tgts.......+1%
*DANONE-Op Inc 1.72b(1.64),L-F-L +0.2%(0.5),Sees grow +ve in H2......+1%
*SCHNEIDER-Q2 Rev 6.33b(6.306),FY Organic Ebita margin lifted........+1%
*CASINO-H1 Rev 18.6b(18.7),Pft 466m,Lifts FY targets.................+1%
*DIALOG SEMI-Q2 Rev 256m(256.3),Gross Margin 47.3%(46.1),FY ok.......+0.5%
*BAYER-Sales 12.19b(12.6),Ebitda 3.06b(2.99),Cuts 2017 targets.......-1%
*SIKA-H1 Sales 2,995m(2,995),Ebit 402.1m(394.7),Net 285.7m(278)......+1%
*SULZER-H1 Sales 1.43b(1.44),Ebit 55.3m(57.7),Net 36.9m(37.2)........-0.5%
*VONTOBEL-NI 101.5m(103),AUM 146.5b(144.6),NNM 0.3b(0.4).............-1%
*ELIOR-9m Sales 4.872m(inline),FY guidance ok,CEO leaving -ve........-1%
MS CALLS
* ALV GY +2% PREANNOUNCED LAST NIGHT - DECENT BEAT ACROSS THE BOARD - FY GUIDANCE IMPLIES A 2-3% CONS UPGRADE
* AIR FP -5% COMMERCIAL AIRCRAFT MISS LEADS 3% GRP EBIT MISS. FY GUIDANCE MAINTAINED BUT NOW WITH CAVEATS, $ WEAKER O'NIGHT
* MC FP +1% SOLID NUMBERS, SMALL BEAT AT ORGANIC REVS DRIVEN BY FASHION & LEATHER; EBIT & MARGIN INLINE. POSITIVE BUT CAUTIOUS OUTLOOK FOR H2
* ROG VX +2-3% BEAT ACROSS THE BOARD, RAISES OUTLOOK, UNDERPERFORMED YEST ON OUR DOWNGRADE
* MONC IM +3-4% STRONG LFL BEAT ALBEIT SMALL QUARTER. EBIT & MARGIN BETTER. OUTLOOK +VE BUT CAUTION INTO Q4. WE MOVE ESTS FOR THIS YEAR UP 3.5%, STOCK INLINE WITH THAT.
* DBK GY -2% REV. BEAT DRIVEN BY BETTER COSTS & PROVISIONS - IB WEAK ACROSS THE BOARD EX AM - CAPITAL 14.1% BEAT BY 30BPS
* SGRE SM -2% 3Q NOS AND 4Q GUIDANCE BELOW CSS, INDIA WEAK
* UCB +3-4% SOLID BEAT, KEPPRA SALES IMPRESSIVE, RAISES FY GUIDANCE
* ABI BB +3-4% ORGANIC SALES & VOLUMES BEAT. EBITDA 2% BETTER. SYNERGIES ACCELERATED. SEE CONS +MSD (PART FROM BETTER TAX), STOCK UNDERPERFORMER RECENTLY
Profits at Foxtons tumble 64%, with warning of ‘challenging’ 2017
Foxtons has posted a 64 per cent slide in profits and warned of a “challenging” end to 2017, as political uncertainty and tough comparatives in the previous year weighed on the UK estate agent.
Total revenues at the group fell 15 per cent to £58.5m in the six months to June 30, which the group said was partly due to the “surge” in sales the previous year, as buyers rushed to the market before an increase in stamp duty on buy-to-let homes.
Profit before tax fell 64 per cent to £3.8m, as Foxtons warned the property market “continues to be weighed down” by the tax changes and said the “unexpected” general election “led to a further slowing of transaction levels” in the second quarter.
It added it expects trading conditions “to remain challenging for the remainder of 2017 given the effects of ongoing economic and political uncertainty.”
Despite the slowdown, the company said it remained optimistic for the London property market.
London remains an economic and financial powerhouse, with an enviable level of global reach and influence. With its solid infrastructure and skilled workforce supporting both financial and commercial sectors, its long-term attractiveness is unlikely to diminish. London continues to be a highly attractive property market driven by high population density and limited housing stock.
Dow +0.45% S&P +0.03% Nasdaq +0.16%Russell
AT RECORD AGAIN. Most indices closed at all-time high (Dow, SPX, and NDX). FOMC didn't raise (as exp) and dollar collapsed (DXY below 94 and €uro back to early 2015 levels, above 1.17. Gold back above 50/100day. Huge earnings day TODAY and also yesterday earnings the driver. Telcos (T), Semis (AMD), and AeroSpace (BA) leaders on EPS. Oil subs also ripped on supportive inventory data from DoE (Crude +1.6%). Laggards were Steel on Trump's delay on anti-steel dumping, Hospitals as Republicans begin Obamacare repeal, and Regionals / TelcoEquips / Casinos / machinery on earnings. Volumes touch better than norm, came at 6.5bn shares, which is +11% above 20day ave. FOMC said would begin running off their $4.5t balance sheet “relatively soon” and left rates unch - said will "assess progress toward their inflation goal". US After Hours NTRI and NTGR +7%, ORLY +5%, FB +3% higher following earnings/guidance, CPN on potential M&A talks advancing... ESND -12%, CYH -12%, BWLD -8%, FFIV -7% following earnings/guidance. ASIAN MARKETS – MOSTLY HIGHER. Mainland equities have risen from earlier lows. The PBoC made a modest CNY20bn net liquidity injection as the offshore yuan strengthened to its highest since early June. There was limited immediate upside from data showing a pickup in industrial profit growth. Elsewhere the Nikkei is holding onto gains despite the yen’s strength. A busy day of Japanese earnings has been headlined by Nintendo’s bumper result. Samsung’s record profit has also driven strength in the Kospi.
Nikkei +0.13% Hang Seng +0.61% CSI +0.28% Shanghai +0.12% Shenzen +1.32%
Eur$ 1.1733 CNH 6.7298 CNY 6.7299 JPY 111.06 GBP 1.3135 CHF 0.9512 RUB 59.3812 WTI$48.67 -0.16%
S&P +0.17% EuroStoxx -0.15% FTSE +0.11% Dax -0.25% SMI -0.12%
Macro :
- Citi Is Said to Plan Moving Part of Private Bank to Madrid: Pais
- Chanel, Luxury Peers to Raise Japan Prices Amid Weak Yen: Nikkei
- Snap, Blue Apron Ineligible for Index Inclusion: FTSE Russell
- Germany to Propose €500m Fund to Avoid Driving Ban: Handelsblatt
Keep an eye on :
- AALB NA : Aalberts First Half Ebita EU169.8 Mln
- ABI BB : AB InBev 2Q Earnings Beat Estimates, Sees Promising 2H, AB InBev Sees Full Year Effective Tax Rate 22% To 24%
- AC FP : Accor Sees 2017 Ebit Between EU460 Mln and EU480 Mln
- AIR FP : Airbus 2Q Profit Drops 27%; Full-Year Forecast Kept
- ALV GY : Allianz Second Quarter Net Income EU2 Bln
- AAL LN : Anglo American Resumes Dividends Early as Miner Trims Debt
- MT NA : ArcelorMittal 2Q Ebitda $2.1B, Compared W/ Est. of $2.2B
- AZN LN : Bristol-Myers Sues AstraZeneca, Pfizer, Roche Over Cancer Drugs
- BAS GY : BASF Second Quarter Adjusted Ebit Beats Estimates, Raises 2017 Ebit Outlook as Earnings Beat
- BAYN GY : Bayer Second Quarter Adjusted Ebitda Beats Highest Estimate
- CAP FP : Capgemini First Half Net Income EU375 Mln
- CO FP : Casino First Half Trading Profit EU466 Mln
- CDI FP : Christian Dior 1H Rev. EU20.7B
- DAI GY : Daimler’s Zetsche, BMW’s Krueger to Discuss Car Sharing Plan: HB
- BN FP : Danone Confirms Targets; 1H Underlying Recurring Net Up 12%
- AM FP : Dassault Aviation Sales Strong, Mix Weaker, Ests. Cut: Goldman
- DBK GY : Deutsche Bank 2Q Net Income EU447m vs Estimate of EU311.3m
- DBK GY : Deutsche Bank Unit IPO Is Said to Be in 2018 at Earliest: Rtrs
- DB1 GY : Deutsche Boerse 2Q Net Revenue Misses Lowest Estimate
- DIA SM : DIA First Half Net Income EU54 Mln
- DGE LN : Diageo Full Year Net Sales Beat Estimates
- DLG GY : Dialog Semi Second Quarter Revenue Misses Estimates
- DRW3 GY : Draegerwerk Second Quarter Ebit EU16.8 Mln
- ELIOR FP : Elior 9-MO Rev. EU4.872B vs EU4.429B
- ELIS FP : Elis First Half Net Income EU19.9 Mln
- ERA FP : Eramet 1H Net EU81 Mln vs Loss EU141 Mln
- NK FP : Imerys Targets Current Net Income Growth Above 7% in 2017
- ING FP : Ingenico 1H Net Climbs 7%; Co. Forecasts Higher Ebitda Margin
- ITP FP : Inter Parfums Raises Year EPS, Sales View Above Estimates
- IPN FP : Ipsen Raises 2017 Margin, Specialty Care Forecasts
- JMT PL : J. Martins First Half Net Income Misses Estimates
- DEC FP : JCDecaux 1H Net EU74.1 Mln, Down 7.8%
- LUPE SS : Lundin Mining Sees Full Year Capital Expenditure $490 Mln
- MC FP : LVMH 1H Showed Strong Performance From Key Divisions: Goldman
- MONC IM : Moncler First Half Revenue EU407.6 Mln
- NESN VX : Nestle First Half Organic Revenue Misses Estimates, Sees FY Organic Sales Growth at Lower End of 2%-4% Range
- NEX FP : Nexans 1H Net EU92M vs EU29M
- NOKIA FH : Nokia 2Q Profit Beats Estimates; Market Seen More Challenging
- ORA FP : Orange 2Q Adjusted Ebitda EU3.38B; Est. EU3.31B
- OSR GY : Osram 3Q Results Maybe Not Enough After Year-to-date Run: MS
- ROG VX : Bristol-Myers Sues AstraZeneca, Pfizer, Roche Over Cancer Drugs
- SU FP : Schneider Upgrades Full-Year Organic Revenue Growth Target
- SCR FP : Scor Launches EU200m Share Buyback Program
- SIK VX : Sika Achieves Record Sales, 1H Net Profit Surges 16%
- STL NO : Statoil Profit Beats Est. to Reach Highest Since Oil Crash
- SEV FP : Suez 1H Net EU45 Mln vs EU174 Mln
- TTK GY : Takkt Second Quarter Ebitda EU37.1 Mln
- TECH FP : Technicolor 1H Rev. Down; Posts Wider Net Loss; Goals Confirmed
- TEF SM : Telefonica 2Q Oibda EU4.16B; Est. EU4.13B
- UNA NA : Unilever Bankers Are Said to Push for Colgate Buy: StreetInsider
- VED LN : Vedanta May Sell Up to $1b in Dollar Bonds Next Week: Eco. Times
- VOW3 GY : VW Board Met on Cartel Issue; Says Talks Among Rivals ‘Common’
>>> Up
* ASML Raised to Buy at Bryan Garnier, PT EU155
* Endesa Raised to Neutral at MainFirst, PT EU20
* Fortum Raised to Hold at HSBC, PT EU14.50
* Fresenius SE Raised to Buy at Bankhaus Lampe
* Lonza Raised to Outperform at Credit Suisse
* Next Raised to Hold at Jefferies, PT 3,850p
* Norsk Hydro Raised to Buy at UBS, PT NOK60
* SOITEC Raised to Buy at Bryan Garnier, PT EU60
* u-blox Raised to Neutral at Bryan Garnier, PT CHF185
>>> Down
* Elior Group Cut to Equal-weight at Barclays, PT EU22.50
* Indra Cut to Underperform at BPI, PT EU13.50
* Nexity Cut to Reduce at Kepler Cheuvreux, PT EU48
* REC Silicon Cut to Sell at AlphaValue
* UMC Cut to Sell at Citi
>>> Initiation
* IWG New Buy at Berenberg
* Workspace New Buy at Berenberg
>>> Call
After Hours Summary: NTRI and NTGR +7%, ORLY +5%, FB +3% higher following earnings/guidance, CPN on potential M&A talks advancing... ESND -12%, CYH -12%, BWLD -8%, FFIV -7% following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: CAI +12.7% (light volume), AXTI +9.9%, NTRI +7.2%, NTGR +6.6%, INVA +6.1%, MMSI +5.6%, LPSN +5.3%, ANIK +5.2% (light volume), ORLY +4.6%, LLNW +4.5%, XLNX +3.5%, FB +3.4%, EW +2.3%, AEM +2.2%, LRCX +2.1%, PYPL +2.1%, GILD +2%, TSCO +1.6%, KS +1.5%, KIM +1.3%, NOW +1.2%, DMRC +1.2% (light volume)
Companies trading higher in after hours in reaction to news: CPN +3.2% (reports of PE firm in advance M&A talks), AAP +1.7% and AZO +1.6% (following ORLY results), LUV +1.6% (ahead of earnings), AKAO +1.2% (Point72 Asset Management discloses 5.5% passive stake), OKE +0.9% (increases quarterly dividend to $0.745/share from $0.615/share), SQ +0.6% (following PYPL results)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: ESND -12.4%, CYH -12.1%, BWLD -7.9%, FFIV -7.3%, MB -5.2% (light volume), WHR -4.6%, WLL -4.2%, FTNT -3.9%, RCII -3.8%, QEP -3.5% (also discloses entry into a definitive agreement to acquire crude oil and natural gas properties in the Permian Basin for an aggregate purchase price of $732 mln), DFS -2.6%, CDE -2.6%, TER -2.2%, MLNX -1.7%, KEX -1.5%, WPG -1.2%
Companies trading lower in after hours in reaction to news: CUR -17% (commences underwritten offering to issue and sell shares of its common stock and warrants to purchase shares of its common stock), TTPH -4.9% (commences offering of $60 mln of shares of its common stock; all of the shares of common stock), THC -1.6% (following CYH guidance), TBK -1% (to acquire Valley Bancorp; commences common stock offering)