Asia Mid-Session Market Update: China Premier Li upbeat on economic prospects amid another double-digit Industrial Profit growth
***US Session Highlights***
- (US) Fed’s Dudley (dove, FOMC voter): Fed's taken very measured and careful approach to shrinking bond portfolio
- (US) MAY PRELIMINARY DURABLE GOODS ORDERS: -1.1% V -0.6E (the largest drop in six months); DURABLES EX TRANSPORTATION: 0.1% V +0.4%E
- (US) May Chicago Fed National Activity Index: -0.26 v +0.49 prior
- (US) JUNE DALLAS FED MANUFACTURING ACTIVITY: 15.0 V 16.0E
-Stocks opened the week on a positive note, spurred by a rally in Europe, as two Italian banks were saved from bankruptcy with public money and Nestle hit a new all-time high, gaining 4% on the day. Technology stocks fell out of favor, down 0.3%. Best performing sectors in the S&P were Utilities and Financials, gaining 0.8% and 0.5% respectively.
***US markets on close: Dow +0.1%, S&P500 flat, Nasdaq -0.3%***
- Best Sector in S&P500: Utilities
- Worst Sector in S&P500: Technology
- Biggest gainers: FE +4.1%; EQT +3.8%; CVS +3.5%
- Biggest losers: FTR -6.6%; ARNC -6.0%; QRVO -5.1%
- At the close: VIX 9.9 (-0.1pts); Treasuries: 2-yr 1.36% (+1bps), 10-yr 2.14% (-1bps), 30-yr 2.70% (-2bps)
***Politics***
- (US) Sen Collins (R-ME) to vote NO on motion to proceed on healthcare legislation - tweet
- (US) CBO scores Senate Republican healthcare bill: 22 million more people uninsured by 2026
- (BR) Brazil Prosecutor General Janot confirms to proceed with corruption charges against President Temer - Brazil press
***Key economic data***
- (CN) CHINA MAY INDUSTRIAL PROFITS Y/Y: 16.7% V 14.0% PRIOR; YTD 22.7% V 24.4% PRIOR
- (NZ) NEW ZEALAND MAY TRADE BALANCE (NZD): 103M (3rd straight surplus) V 419ME; 12-MONTH YTD: -3.75B V -3.39BE
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 111.8 v 112.4 prior
***Asia Session Notable Observations***
- China Premier Li spoke at World Economic Forum, pleding to maintain policy settings amid steady growth expectations in Q2; Unemployment seen at 4.9%.
- China profit growth accelerates to 16.7% from 14.0%, while Liabilities growth slows to 6.5% from 6.7% in May.
- New Zealand posts 3rd straight trade surplus; Exports in line with estimates and Imports higher than expected; Shipments of Dairy spike over 40% y/y to NZ$1.2
- Brazil Prosecutor confirms proceeding with corruption charges against Pres Temer.
- White House notes signs of Syria preparing another chemical attack, warns Assad will pay heavy price if he proceeds.
***Speakers and Press***
China
- (CN) China Premier Li: Economy maintaining steady growth and improving in Q2; To keep proactive fiscal policy and prudent monetary policy - World Economic Forum comments
- (CN) PBOC said to be in talks with MoF on asset management tax plan
- (CN) China May Lottery Sales CNY37.7B, +8.9% y/y
Japan
- (JP) Japan Fin Min Aso: Takata bankruptcy may impact jobless rate; Will work with METI to gauge impact - press
- (JP) Japan ruling Liberal Democratic Party lawmaker Shigeru Ishiba: Japan must keep its 2020 primary balance target; faith in currency is extremely important
- (JP) Japan Q1 Household Assets ¥1,809T, +2.7% y/y
Korea
- (KR) South Korea Pres Moon: Extra budget will help economy get back to 3% GDP growth - press
***Asian Equity Indices/Futures (00:30ET)***
- Nikkei +0.3%, Hang Seng +0.1%, Shanghai Composite -0.1%, ASX200 -0.1%, Kospi +0.3%
- Equity Futures: S&P500 flat; Nasdaq +0.1%, Dax flat, FTSE100 flat
***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1180-1.1195; JPY 111.80-112.10; AUD 0.7575-0.7605; NZD 0.7275-0.7300
- Aug Gold flat at 1,246/oz; Aug Crude Oil +0.3% at $43.50/brl; July Copper -0.2% at $2.63/lb
- SPDR Gold Trust ETF daily holdings rise 2.7 tonnes to 853.7 tonnes
- Morgan Stanley lowers Q3 Iron Ore price forecast by 23% to $50/ton - press
- (CN) PBOC SETS YUAN MID POINT AT 6.8292 V 6.8220 PRIOR; Weakest Yuan fix since May 31st
- (CN) PBoC: To skip today's open market operation (OMO); 3rd straight skip
- (JP) Japan MoF sells ¥1.77T v ¥2.2T indicated in 2-yr 0.1% JGBs; Avg yield: -0.103% v -0.162% prior; bid to cover: 6.79x v 5.06x prior
- (AU) Australia (AOFM) sells A$150M in 2.5% 2030 indexed bonds; avg yield 0.6562%
***Asia equities notable movers***
Australia
- QBE Insurance (QBE) +1.3%; Exec: Seeing higher claims in emerging markets - press
- Blackmores Limited (BKL) -3.9%; CEO Christine Holgate to resign
- Metcash (MTS) -4.1%; Cut at Credit Suisse
Japan
- Nissan (7201) +0.7%; Targets 8% global market share as part of its next mid-term plan - press
- Mitsubishi Motor (7211) +1.4%; Guides FY19 global vehicle production at least 1.5M units, +40% from last FY
- Nikon (7731) +0.7%; Said to increase display device output for camera and TV products - Nikkei
Hong Kong
- China Southern (1055) -3.5%; To raise up to $1.9B in share sale
- Pioneer Global Group (224) +13.4%; Reports FY17 (HK$) Net loss 67.6M v loss 67.7M y/y; Rev 295.0M v 258.7M y/y
- Bosideng International Holdings limited (3998) +5.1%; Reports FY (CNY) net 391.8M v 280.9M y/y, Rev 6.82B v 5.79B y/y
>>> Up
*Academedia Raised to Buy at SEB Equities
*Air France-KLM Raised to Outperform at RBC, PT EU20
*Diageo Raised to Buy at SocGen
*Fortum Raised to Neutral at JPMorgan, PT EU13.50
*Hella Raised to Buy at MainFirst, PT EU55
*Lufthansa Raised to Outperform at RBC, PT EU30
*Tele2 Raised to Neutral at Credit Suisse
*Vodafone Raised to Buy at AlphaValue
>>> Down
*Amer Sports Cut to Accumulate at Inderes, PT EU24
*Antevenio Cut to Accumulate at Euroland Corporate, PT EU7.60
*ASR Nederland Cut to Neutral at Kempen & Co, PT EU32
*Attendo Cut to Sell at SEB Equities
*Eiffage Cut to Hold at HSBC, PT EU82
>>> Initiation
*Abcam New Buy at Berenberg, PT 1,100p
*Air France-KLM New Underperform at Bernstein
*Amundi Resumed Overweight at Morgan Stanley, PT EU76.90
*Deutsche Post New Market Perform at Bernstein
*EasyJet New Outperform at Bernstein
*Lufthansa New Underperform at Bernstein
*Ryanair New Underperform at Bernstein, PT $83
>>> Call
After Hours Summary: NSA +4% on S&P SmallCap 600 addition news, WDC -2% following guidance (STX also lower)After Hours Gainers:
Companies trading higher in after hours in reaction to news: TOPS +30.9% (higher after announcing financial information after reverse stock split on June 23), NSA +4% (will replace Blackbaud in the S&P SmallCap 600), RAD +3.7% (continued strength on potential WBA / RAD FTC approval), THC +3.4% (following CBO score on Better Care Reconciliation Act of 2017 - Senate healthcare bill), KMPH +2.9% (announces patent for KP746), AMRN +2.9% (attributed to positive analyst comments), ESPR +1.7% (says the FDA recently confirmed the regulatory pathway to approval for the once-daily, oral combination pill of bempedoic acid 180 mg and ezetimibe 10 mg), AHH +1.2% (Pres/CEO disclosed purchase of 10000 shares worth approx $134K)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: WDC -2.2%
Companies trading lower in after hours in reaction to news: FNJN -10.2% (commenced an underwritten registered public offering of common stock), RGEN -6% (Repligen commences underwritten public offering of $100 mln in shares of its common stock), RGEN -6% (light volume; commences underwritten public offering of $100 mln in shares of common stock), NEOS -4.1% (proposed offering of common stock), ARR -3.7% (commences underwritten public offering of 4.5 mln shares of common stock), BLUE -2.1% (announces topline interim data from the initial cohort of 17 patients in the ongoing Phase 2/3 Starbeam Study evaluating Lenti-D in boys under 18 years old with cerebral adrenoleukodystrophy; commences underwritten public offering of $350 mln of its common stock), STX -2.1% (following WDC guidance)
Une filiale de LVMH est visée par une plainte pour vols
25 juin 2017 Par Michel Deléan
La société Le Jardin d’acclimatation, filiale de LVMH, est accusée par un forain d’avoir mis la main illégalement sur ses manèges, d’une valeur de 4,5 millions d’euros.
Depuis quelques années déjà, le puissant groupe LVMH (propriété de Bernard Arnault) a entrepris de moderniser le Jardin d’acclimatation, une institution parisienne située au Bois de Boulogne et jouxtant désormais sa prestigieuse Fondation Louis Vuitton, inaugurée en octobre 2014.
Côté pile, le géant du luxe communique abondamment sur les nouvelles attractions et animations de cet espace vert qui était gentiment désuet – on le connaît surtout pour son petit train et ses manèges « rétro » – et dont il a acquis la concession dès 1995 auprès de la Ville de Paris, avec quelques ambitions.
Côté face, les tarifs d’entrée et ceux des nombreuses attractions payantes ont connu une hausse conséquente, l’endroit se voulant plus « select », et un contentieux assez lourd oppose la société Le jardin d’acclimatation, filiale (via Ufipar) de LVMH, à l’un des sous-concessionnaires, le forain Roger Sacreste, 80 ans, présent sur le site depuis les années 1960.
Selon des informations obtenues par Mediapart, l’octogénaire a déposé le 21 avril une plainte avec constitution de partie civile pour « vols » et « tentative d’escroquerie au jugement » visant cette filiale de LVMH au tribunal de grande instance de Paris. La procédure devrait être confiée à un juge d’instruction dans les jours qui viennent, alors qu’une plainte simple avait précédemment été classée sans suite par le parquet de Paris.
« Mon père a commencé à travailler au Jardin d’acclimatation en y achetant son premier manège au début des années 1960. Sa mère et son frère y travaillaient aussi. Il s’y est beaucoup investi et a racheté plusieurs manèges, un par un, au fil des ans, jusqu’à les avoir quasiment tous », raconte Florian Sacreste, le fils du patriarche, qui a également travaillé sur place avec sa sœur. En 2015, la famille Sacreste possède 25 manèges, 10 stands de jeux et une boutique de souvenirs au Jardin d’acclimatation.
Mais les relations avec LVMH se sont gâtées depuis 2011, à la faveur de quelques incidents sur des manèges. « C’est un prétexte, notre responsabilité n’était pas en cause », assurent les forains. En février 2012, la société Ludo Vert des Sacreste père et fils (respectivement président et directeur général) reçoit un courrier par lequel la société Le Jardin d’acclimatation veut résilier de façon anticipée les contrats de sous-concession qui les lient. « LVMH veut faire place nette, en débarquant les derniers indépendants pour devenir le seul maître à bord, en prévision de l’ouverture de la luxueuse Fondation Louis Vuitton à quelques pas de là », explique la famille Sacreste. De fait, LVMH aurait investi quelque 25 millions d’euros ces dernière années dans le Jardin d’acclimatation.
Très pressée de se débarrasser des forains, la filiale de l’empire Arnault saisit, pour ce faire, le tribunal administratif de Paris début 2012. Mais la résiliation des contrats lui est refusée, dans une décision rendue le 3 avril 2013 et confirmée par la cour administrative d’appel de Paris le 4 décembre 2014. Qu’à cela ne tienne, la société Le Jardin d’acclimatation saisit le Conseil d’État, qui renvoie l’affaire à la cour administrative d’appel. Cette procédure n’est toujours pas achevée à ce jour.
Roger Sacreste continue donc à exploiter ses manèges, sa sous-concession courant jusqu’en décembre 2015. Mais en octobre 2015, nouveau rebondissement : il reçoit un courrier du Jardin d’acclimatation lui proposant de proroger jusqu’en septembre 2016 les conventions de sous-concession. Et en décembre, il est destinataire d’un projet d’avenant assez curieux. Sous couvert de modifier la durée de la sous-concession, cet avenant prévoit en effet que les manèges de Ludo Vert seraient, à terme, considérés comme des « biens de retour », comme s’ils appartenaient depuis l’origine à la Ville de Paris, au même titre que les bâtiments du Jardin d’acclimatation. Roger Sacreste serait alors dépossédé de ses biens, qu’il avait achetés sur plusieurs années pour un montant de 4,45 millions d’euros. « On pouvait rester dix mois de plus en acceptant de signer, mais on n’avait plus rien à la fin », résume Florian Sacreste.
[[lire_aussi]]Or, cette qualification de « biens de retour » n’avait jamais été évoquée jusque-là dans les différentes conventions passées. Entre autres documents en la possession des Sacreste, une attestation du 6 janvier 1998, signée par le directeur général du Jardin d’acclimatation, confirme que le matériel installé par les forains « demeure la pleine propriété de chaque exploitant ». En 2012, la filiale de LVMH a d’ailleurs racheté à un autre forain (la société EC Loisirs et Nature) ses deux manèges pour la somme de 500 000 euros.
Roger Sacreste refuse de signer l’avenant qu’on lui soumet. Il devient donc « occupant sans droit ni titre » à partir de décembre 2015, à la fin de la sous-concession, et il entreprend de démonter ses manèges en janvier 2016. « Tous nos manèges sont démontables. On avait le droit de les démonter, alors que nos stands et nos boutiques sont en dur et devaient rester sur place. Mais ils ont aussitôt envoyé la police, et le PDG du Jardin d’acclimatation, Marc-Antoine Jamet, est venu sur place pour remettre un courrier à tous nos employés, en leur disant que nous cessions nos activités, que les manèges restaient, qu’il y avait une obligation de service public et qu’ils reprenaient l’exploitation et les salariés. On a été mis dehors par des agents de sécurité et on a tout perdu », raconte Florian Sacreste.
Un des manèges du Jardin d'acclimatation © DR Un des manèges du Jardin d'acclimatation © DR
Une nouvelle procédure (en référé) démarre au tribunal administratif. La filiale de LVMH prétend alors que les « biens de retour » devant rester sur le site sont visés dans un avenant qui avait été conclu le 29 mai 2015 avec la Ville de Paris pour proroger sa concession de neuf mois. Mais vérification faite, il s’avère que l’annexe censée détailler ces fameux biens n’existe pas. Les Sacreste en concluent que Le Jardin d’acclimatation a voulu tromper la justice administrative pour accaparer leurs manèges, d’où la plainte pour « vols » et « tentative d’escroquerie au jugement ».
Ironie de l’histoire, la filiale de LVMH a soutenu que les attractions de Ludo Vert étaient « indispensables » au fonctionnement du Jardin d’acclimatation, lorsqu’il s’est agi de mettre la main dessus. Mais en février dernier, Roger Sacreste s’est aperçu que deux de ses manèges (le Grand Carrousel et le Petit Carrousel) avaient été mis en vente…
Sollicité à plusieurs reprises par Mediapart pour donner son point de vue, le PDG du Jardin d’acclimatation, Marc-Antoine Jamet, n’a pas donné suite. Embauché par Bernard Arnault en 2001, cet ancien collaborateur de Laurent Fabius, élu PS en Normandie depuis une quinzaine d’années, est l’influent secrétaire général du groupe LVMH. Une fonction qui lui a valu d’apparaître dans une scène remarquée du film Merci patron ! de François Ruffin.
Gapping up
In reaction to strong earnings/guidance:
In reaction to strong earnings/guidance:
- N/A
M&A news:
- RIO +0.6% (Rio Tinto confirms Yancoal as the preferred buyer of its thermal coal assets in Australia)
Other news:
- SRNE +15.9% (successful Phase 1 / 2 pharmacokinetic bridging trial of the lead product SP-102)
- STOR +8.9% (announces that Berkshire Hathaway (BRK.A/B) has invested $377 mlnin the company, representing 9.8% of total shares outstanding)
- CBIO +4.9% (positive preclinical results of CB 2679d/ISU304)
- AVEO +4.8% (continued strength)
- TGTX +3.7% (recaps preliminary results from its ongoing Phase 2 study of TG-1101)
- CNAT +3.7% (confirms being granted Orphan Drug Designation by the FDA for IDN-7314)
- P +2.5% (CEO Tim Westergren plans to leave the company, according to ReCode)
- AMD +1.3% (continued strength following last weeks 25% rise)
- MOMO +1.1% (continued strength)
Analyst comments:
- PTLA +4.1% (target raised to $70 from $50 at Morgan Stanley)
- MU +2.1% (target raised to $40 from $32.50 at Wells Fargo)
- CS +1.6% (resumed with a Overweight at JP Morgan)
- COH +1.6% (upgraded to Buy from Neutral at Buckingham Research)
- UBS +1.2% (upgraded to Overweight from Neutral at JP Morgan)
- COST +1.1% (upgraded to Outperform from Mkt Perform at Raymond James)
Gapping down
In reaction to disappointing earnings/guidance:
In reaction to disappointing earnings/guidance:
- N/A
Select metals/mining stocks trading lower:
- SSRI -3.6%, GFI -3.6%, GOLD -1.9%, NEM -1.9%, RGLD -1%
Other news:
- NEOT -69.8% (announces top-line results for Phase 2 proof-of-concept study of LIPO-202)
- MTNB -48.7% (topline data from its Phase 2 safety, tolerability and efficacy study of MAT2203 did not meet primary endpoint)
- DRYS -9.8% (provides Kalani Investments update)
- AMAG -7.4% (FDA Filing Acceptance of Supplemental NDA for Makena subcutaneous auto-injector; reaffirms 2017 financial guidance)
- AGIO -6.9% (reports new data from DRIVE PK study; Program on track to enter global pivotal development in 1H18)
- SGEN -6.7% (Seattle Genetics and Takeda Pharmaceutical (TKPYY) announce that the Phase 3 ECHELON-1 clinical trial met its primary endpoint)
- DMRC -3.4% (to sell 500,000 common shares in a registered direct offering to a certain investor at a price of $35.55 per share)
- BBRY -1.3% (continued weakness)
Analyst comments:
- SSYS -2.8% (downgraded to Sell from Neutral at Goldman)
- INTU -0.9% (downgraded to Neutral from Buy at Citigroup)
Schnitzer Steel reports EPS in-line with upside preannouncement (21.60)
- Reports Q3 (May) earnings of $0.56 per share, excluding non-recurring items, in-line with the single analyst estimate of $0.56; revenues rose 35.5% year/year to $477 mln.
- Preannonced Q3 adj. EPS $0.52-0.56 vs. $0.42 consensus on June 15.
- "Our third quarter results benefited from our continued focus on profitable growth. In both our Auto and Metals Recycling and our Steel Manufacturing Businesses, higher volumes and operating leverage from our multi-year productivity initiatives drove increased operating income," commented Tamara Lundgren, President and Chief Executive Officer. "Through the first nine months of this year, we have achieved our best earnings performance since fiscal 2012." "Our balance sheet continued to strengthen as we generated strong operating cash flow, driven primarily by higher profitability and also by lower working capital as compared to the second quarter. This enabled us to reduce debt while continuing to invest in our operations and to return capital to our shareholders."
Third Point, a Hedge Fund, Sets Its Activist Sights on Nestlé
LONDON — Over the past two decades, the hedge fund mogul Daniel S. Loeb has established himself as one of the biggest activist investors around. Now, he has set his sights on one of Europe’s largest corporate citizens: Nestlé, the global food giant.
In a letter to investors sent on Sunday, his Third Point hedge fund argued that Nestlé, a Swiss conglomerate whose wares range from candy to baby food to pet food, should sell its stake in L’Oréal and sell off nonessential operations as part of a broad shake-up.
It is the latest ambitious move by an activist investor to rattle the leaders of the corporate world. Flush with cash, these funds have taken stakes in ever-bigger companies, hoping to goad them into selling themselves or breaking themselves up to improve their stock prices.
Jana Partners, for instance, prodded change at Whole Foods Market. This month, that grocery store chain announced that it was selling itself to Amazon for $13.4 billion. And Trian Fund Management took a $3.5 billion stake in Procter & Gamble, a consumer products behemoth that has sought a way to improve stagnant sales.
Third Point disclosed that it owned about 40 million shares in Nestlé, a stake that amounts to about $3.5 billion in stock. That would make the hedge fund the Swiss company’s sixth-largest shareholder, according to Standard & Poor’s Global Market Intelligence.
Behind Third Point’s investment in Nestlé is a conviction that the company must do more to reshape its product portfolio and adapt to changing consumer tastes and competition from smaller, local brands. The hedge fund argued that the company’s earnings per share figure had not meaningfully improved over the last five years.
Shares in Nestlé have risen nearly 15 percent over the last 12 months, trailing those of its fellow consumer conglomerate Unilever but outpacing those of other food companies like Mondelez and Kraft Heinz.
“Third Point invested in Nestlé because we recognized a familiar set of conditions that make it ripe for improvement and change,” the hedge fund wrote in its investor letter. “It is rare to find a business of Nestlé’s quality with so many avenues for improvement.”
A representative for Nestlé was not available for comment.
Third Point said it was encouraged by Nestlé’s announcement this month that it was weighing the sale of its American candy business, which produces stalwart sweets like Butterfingers and Gobstoppers.
But the hedge fund argued that Nestlé should also sell its 23 percent stake in L’Oréal, the big cosmetics maker whose products include its namesake beauty brand and luxury products like Kiehl’s. The fund argued that the holding was nonstrategic and could be sold off without incurring huge taxes.
In a change from previous investments, in which Mr. Loeb was known for his venomous attacks on the chief executives of the targeted companies, Third Point has praised Nestlé’s leader, Ulf Mark Schneider. The hedge fund pointed positively to his earlier tenure at the German medical supply company Fresenius. But to succeed at Nestlé, the hedge fund argued, he needs to present a bold strategy that would overhaul the food giant’s performance.
Mr. Loeb may not have read Nestle’s news releases over the last few weeks. In May, the company announced that it had teamed up with Amazon to offer a cooking companion with step-by-step recipe instructions, visual aids, skill demonstrations and other content to help consumers prepare meals.
The same month, it announced it was retooling its Maggi line to eliminate ingredients consumers do not like and add vegetables, grains and other more nutritional items.
The company also announced this month that it was the lead investor in a $77 million investment in Freshly, a subscription meal service.
In addition, the company has worked over the last several years to strip preservatives and other ingredients from its ice creams and decidedly improve its vast frozen foods portfolio.
Third Point said it had hired Jan Bennink, a former executive chairman of Sara Lee, to advise the hedge fund on its investment.