Numis:
* AVEVA +1-2% Bid spec in the Telegraph (shares were strong yesterday afternoon, up 5%)
* CHALLENGER BANKS -1% Council of Mortgage Lenders cut forecast for BTL Mortgages from £38bn to £35bn.
* HOUSEBUILDERS -1%: Hometrack data out o/n, London house prices rose at lowest rate in 5 years (+3.3% yoy in May).
* RANDALL & QUILTER +4% Sale of Lloyd’s managing agency to US insurer Coverys for $22.6m, which will generate a net gain of £12.6m (c.15p per share)
RBC:
*AIB: IPO priced @ €4.40, as expected.
*AVEVA: +2% FT & TELEGRAPH: speculation SU will launch third bid proposal for AVV.
*NEINOR HOMES: 0% buys final building land in Valencia for €27M.
*NOVARTIS: 0% drug combo gets regular FDA approval for lung cancer.
*ROCHE: +1% FDA approval of Rituxan Hycela drug for some blood houses.
*SCHNEIDER: +0% FT & TELEGRAPH: speculation SU will launch third bid proposal for AVV.
Mainfirst:
*NESTLE-Gerber baby food bizz looking at acquisitions..............U/C
*EUROFINS-Buys Erico in Slovenia,no fin details,founed 25yrs ago...U/C
*GLAXO-New CEO aims to divest sports nutrition brand,paid $255m....+0.5%
*ZODIAC-CEO aims to fix delivery problems by September.............+0.5%
*LAGARDERE-Solocal,SFR in inline ad alliance says Les Echos........+0.5%
*ROCHE-FDA aaproves Rituxan Hycela for subcutaneous injection......+1%
*AXEL SPRINGER-Wont separate its classifieds bizz says CEO.........+0.5%
*HAVAS-CEO says goal is to create €390m added value for Vivendi....+0.5%
*NOVARTIS-Drug combo gets regular FDA Approval in Lung Cancer......+0.25%
*TUI-CEO says weaker pound dampens tourism demand..................-0.5%
*SIEMENS-May get major rail order from India - Wiwo................U/C
*SCHNEIDER ELEC-Aveva +5% yesterday,press highlights SU prevs bid..-0.5%
*DBK-To complete Postbank intergration in 2022,details in Sept.....U/C
Investec:
UK
* AIB-priced @ €4.40,trades ‘when issued’ basis,ticker ALBT ID or LN..ind +10%
* AVEVA-Schneider to launch(another)offer(FT&Telegraph)Shs +4.9%yday.......-1%
* RIO'S-Completes $2.5bn gross debt reduction.............................unch
* WORKSPACE-Acquires Salisbury House(EC2) for £158.7m.....................unch
EU
* AXEL SPRINGER-won’t separate classifieds business says CEO................U/C
* DBK-to complete Postbank integration in 2022, detail in Sept(WiWo)........-1%
* LAGARDERE-in online advertising alliance (Echos)........................+0.5%
* NOVARTIS-lung cancer drug combo gets FDA approval, broker u/g away........+1%
* SHELL-$1bn New Zealand sale said draw interest from OMV(U/C), others....+0.5%
* SIEMENS-may get major rail order from India(WiWo).........................+1%
* VW-wage talks in Slovakia fail, strike may last a week (Unions).........-0.5%
* ZODIAC-new CEO aims to fix delivery problems by Sept....................+0.5%
Commerz:
ALV -0.2% to cut 700 jobs in germany by 2020
BAS -0.9% Berenberg starts with Sell, PT €78
BEI +0.4% MainFirst starts with Outperform, PT €115
CBK +1.2% Citi raised to Buy (vs Neutral)
DUE -1.8% HSBC cuts to Hold, PT €104
G24 +0.6% Scout rated new Buy at Kepler, PT €38.50
MDG1 +0.1% short seller Voleon Capital lowers short slightly to 0.59% (0.60)
PFV -0.8% acquires Nor-Cal Products foe USD 68mln
SAP -0.7% lowered to Hold (vs Buy), PT €100, lacking further catalysts
SIE -0.4% may get major rail order from India, WiWo reports
SZG +0.8% raised to Hold (vs Reduce), new PT €38, narrowed gap to peers
CS:
Intesa +1% Veneto lenders' bad bank to absorb €20bn of NPLs
Lunbeck -5% Lundbeck receives complete response letter from FDA
Miners -0.5% Iron ore -80bps, Steel -60bps, oil -60bps
Oils -0.5% Oil -60bps, US peers closed near the lows
RD Shell +0.5% Added to CS focus list on improved cost control
SPS +1% CS u/g to Neutral - valuation
Zumtobel -1% FY revs €1.3bn vs cons €1.32bn, outlook ok
Asian markets are mixed on Friday. Oil prices have steadied following recent volatility, offering some respite for underperforming commodity producers. This follows a pickup in concern from the recent oil/energy weakness, which has dovetailed with a flatter yield curve and ignited debate about its signaling effect. Losses on mainland markets are building following a flat start. Weakness comes on the back of late selling Thursday, which followed reports regulators have ramped up scrutiny of big name acquirers as part of their deleveraging push. In draining another CNY50B via open market operations, the PBoC maintained that interbank liquidity is plentiful amid increased in fiscal spending towards the quarter-end. Trading activity is lackluster elsewhere across Asia. The ASX is flat with gains capped by more weakness in the banks. Reports have highlighted an increasingly hostile political environment for the four majors after the South Australian government introduced its own levy on their liabilities. There was muted impact on the Nikkei from the Japan flash PMI falling to a seven-month low.
Macro :
- Carlyle Co-CEO: Asia Valuations About 20% Lower Than U.S.
Keep an eye on :
- ALV GY : Allianz to Cut 700 Jobs in Germany by 2020: Sueddeutsche
- ALBK ID : Allied Irish Banks IPO Priced at EU4.40/Shr; Raising About EU3b
- BNP FP : BNP Paribas to Cut 640 Jobs by 2020, Les Echos Says
- GSK LN : GlaxoSmithKline Said Pursuing Sale of Maxinutrition: Sky
- MMB FP : Lagardere, Solocal, SFR, Les Echos in Online Ad. Alliance
- OHL SM : OHL Studies Seeking Minority Partner for Concessions Unit
- UBI IM : UBI Banca Says Hasn’t Received Notice of Indictment Request
- ZC FP : Zodiac’s Delabriere Aims to Fix Delivery Problems by Sept.
>>> Up
*Ascential Raised to Add at Peel Hunt
*Centrica Raised to Neutral at JPMorgan, PT 205p
*Commerzbank Raised to Buy at Citi
*ITV Raised to Overweight at Morgan Stanley, PT 230p
*Salzgitter Raised to Hold at Commerzbank, PT EU38
*SAS Raised to Hold at HSBC, PT SEK20
*Swiss Prime Raised to Neutral at Credit Suisse
*Vivendi Raised to Outperform at Raymond James
>>> Down
*BAE Cut to Neutral at JPMorgan, PT 685p
*Cellnex Cut to Neutral at Goldman
*Domino's Cut to Hold at Berenberg
*Duerr Cut to Hold at HSBC, PT EU104
*Heineken Cut to Hold at Stifel, PT EU93
*SAP Cut to Hold at Commerzbank, PT EU100
>>> Initiation
*Altice USA New Buy at Pivotal, PT $38
*Amundi New Outperform at Macquarie, PT EU72.20
*Azimut New Outperform at Macquarie, PT EU19.90
*BASF New Sell at Berenberg, PT EU78
*Beiersdorf New Outperform at MainFirst, PT EU115
*DSV New Buy at HSBC
*Henkel New Neutral at MainFirst, PT EU125
*Kuehne + Nagel New Hold at HSBC
*L'Oreal New Neutral at MainFirst, PT EU190
*Panalpina New Reduce at HSBC
*Scout24 New Buy at Kepler Cheuvreux, PT EU38.50
>>> Call
>> Stock
*ROYAL DUTCH SHELL ADDED TO EUROPEAN FOCUS LIST AT CREDIT SUISSE
Asia Mid-Session Market Update: Japan Prelim PMI slides to 6-month low; North Korea carries out another rocket engine test
***US Session Highlights***
- (US) INITIAL JOBLESS CLAIMS: 241K V 240KE; CONTINUING CLAIMS: 1.944M V 1.93ME
- (US) APR FHFA HOUSE PRICE INDEX M/M: 0.7% V 0.5%E
- Stocks opened to the upside this morning, with the Dow gaining 50 points, before retracing late afternoon. Other major markets followed suit, with both the Dow and the S&P wiping out all their gains and closing slightly down on the day. The Nasdaq managed to post a small gain, and the Russell kept 0.4% of it gains for the day. In the S&P, the Health Care sector gained 1.1%, helping to pare losses from Consumer Staples and Financials, which lost 0.6% each.
***US markets on close: Dow -0.1%, S&P500 -0.1%, Nasdaq flat***
- Best Sector in S&P500: Health Care
- Worst Sector in S&P500: Consumer Staples
- Biggest gainers: ORCL +8.6%; SPLS +6.2%; KMX +4.6%
- Biggest losers: ACN -4.0%; DPS -3.6%; WLTW -2.4%
- At the close: VIX 10.5 (-0.3pts); Treasuries: 2-yr 1.35% (flat), 10-yr 2.15% (-1bps), 30-yr 2.72% (flat)
***US movers afterhours***
- SGH Reports Q3 $0.62 v $0.62e, Rev $207M v $205Me; Guides Q4 $0.62-0.66 v $0.61e, Rev $205-215M v $213Me, gross margin 21-23%; +2.1% afterhours
- BBBY Reports Q1 $0.58 adj v $0.66e, Rev $2.74B v $2.80Be; Affirms FY17 EPS to decline low single digits to 10%, implies low end $4.12 v $4.29e; -7.4% afterhours
***Politics***
- (NZ) Latest Roy Morgan survey shows ruling National Party support rise 3.5pts to 46.5% following FY17/18 budget - NZ press
- (VE) Venezuela opposition to block streets nationwide on Friday
***Key economic data***
- (JP) JAPAN JUNE PRELIMINARY PMI MANUFACTURING: 52.0 V 53.1 PRIOR; 9th straight month of expansion; 6-month low
***Speakers and Press***
China
- (CN) PBoC: China banks are confident about June-end liquidity - Chinese press
- (CN) China Banking Regulator (CBRC): China banks' NPL ratio fell 16bps y/y to 1.99% in May
- (CN) China said to cut retail gasoline price by CNY250/ton starting June 24th - press
Australia/New Zealand
- (NZ) Quotable Value (QV): Average cost of building a home in New Zealand rose 3.5% y/y in May - NZ press
Korea
- (KR) US officials: North Korea has carried out another rocket engine test, likely for small stage of 3-stage ICBM type rocket engine - press
***Asian Equity Indices/Futures (00:30ET)***
- Nikkei +0.2%, Hang Seng +0.1%, Shanghai Composite -0.7%, ASX200 +0.0%, Kospi +0.1%
- Equity Futures: S&P500 +0.1%; Nasdaq +0.1%, Dax +0.1%, FTSE100 flat
***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1160-1.1170; JPY 110.95-111.45; AUD 0.7540-0.7560; NZD 0.7200-0.7270
- Aug Gold +0.7% at 1,254/oz; Aug Crude Oil +0.1% at $42.55/brl; July Copper -0.1% at $2.59/lb
- iShares Silver Trust ETF daily holdings rise to 10,571 tonnes from 10,504 tonnes prior
- (CN) PBOC SETS YUAN MID POINT AT 6.8238 V 6.8197 PRIOR; Weakest Yuan fix since May 31st and 4th straight weaker setting
- (CN) PBoC: To skip today's open market operation (OMO)
- (CN) China Finance Ministry sells 3-month bonds at 3.376%
- (AU) Australia Finance Ministry (AOFM) sells A$600M in 1.75% 2020 bonds; avg yield 1.843%; bid-to-cover 5.29x
***Asia equities notable movers***
Australia
- CSR (CSR) +2.0%; Guides FY17/18 earnings to rise y/y; Chairman to stand down at the 2018 AGM
- Infigen (IFN) -4.9%; Cuts FY17 EBITDA to A$136-138M from A$147M prior forecast
Japan
- Takata (7312) +45.5%; Toyota, Honda and Nissan will continue to financially support Takata after it files for bankruptcy protection - Nikkei
- Don Quixote (7532) +0.2%; FY16/17 Rev said to rise 10% to ~¥830B; Op profit seen around ¥46.5B, above ¥45.5B prior forecast - Nikkei
- Toshiba (6502) -4.2%; Reportedly to request securities report filing deadline extension - Japan press
Hong Kong
- Lonking Holdings Limited (3339) +3.0%; Issues positive H1 profit alert
- China Electric (85) -2.4%; Guides H1 profit -90% to -80% y/y due to prior one off gain
- Bauhaus International Holdings (483) +31.3%; Reports FY17 (HK$) Net 64.9M v 52.9M y/y; Rev 1.31B v 1.51B y/y; SSS -10%
(BFW) *FTC’S TAD LIPSKY SAID TO RECOMMEND BLOCKING DEAL: CAP FORUM