>>> Asian Update

Asia Mid-Session Market Update: RBA meeting minutes reinforce neutral stance; PBOC reduces OMO purchases and weakens Yuan fix

***US Session Highlights***
- (US) Fed’s Dudley (dove, FOMC voter): Confident that the current expansion has quite a long way to go; generally pleased with US economy
- (MX) US Commerce Sec Ross: neither Mexico nor Canada are currency manipulators - Bloomberg interview
- UPS establishes new surge pricing surcharge for Nov-Dec residential packages, large packages and packages over maximum limits
- (US) Senate Democrats reportedly plan legislative slowdown over lack of disclosure and debate of GOP health care bill - press
- Stock markets regained steam today as techs led the way in Asia and Europe, continuing into the US session. Both the Dow and S&P reached new all-time highs, with closes at 21,528 and 2,453. For the S&P, the best performing sector was technology, gaining 1.5%, while the Energy sector lost 0.8% on the back of continued weakness in crude oil prices.

***US markets on close: Dow +0.7%, S&P500 +0.8%, Nasdaq +1.4%***
- Best Sector in S&P500: Technology
- Worst Sector in S&P500: Energy
- Biggest gainers: PKI +6.5%; NAVI +5.8%; MNK +4.7%
- Biggest losers: EQT -9.0%; RRC -5.1%; FTR -5.0%
- At the close: VIX 10.4 (-0.1pts); Treasuries: 2-yr 1.36% (flat), 10-yr 2.19% (+3bps), 30-yr 2.79% (+1bps)

***US movers afterhours***
-TDOC Said to acquire medical consultation business Best Doctors for $375M in cash and $65M in stock - press; -0.8% afterhours
-RS Cuts Q2 $1.30-1.40 v $1.59e (prior $1.50-1.60); -6.6% afterhours

***Politics***
- (CN) China President Xi: "Higher education must adhere to correct political orientation" - press
- (DE) Germany's Social Democratic Party said to plan €15B in tax cuts if elected - German press

***Key economic data***
- (AU) AUSTRALIA Q1 HOUSE PRICE INDEX Q/Q: 2.2% V 2.2%E; Y/Y: 10.2% V 8.9%E
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 112.4 v 112.9 prior
- (NZ) NEW ZEALAND JUNE ANZ CONSUMER CONFIDENCE INDEX: 127.8 V 123.9 PRIOR; M/M: +3.1% V +1.8% PRIOR

***Notes and Observations***
- Asia indices mixed with Nikkei225 leaning the way on weaker JPY; USD/JPY pair rose to 3-week highs above 111.70 amid comments from FOMC voting doves Dudley and Evans talking up the extension of current recovery.
- RBA polity meeting minutes further reinforced the central bank is on hold, even though fixed income markets priced in some 20% of a rate cut this year. RBA noted improvement in global economic conditions and sustained property construction investment in China.
- PBoC open market operations was notably reduced to CNY10B, but the Yuan fix was also the weakest since last month. Separately, CBRC bank regulator official warned that risks in the banking sector may be exposed by economic downturn.

***Speakers and Press***
China
- (CN) Fitch: China economic growth to fall slightly below 6.0% in 2018 and 2019 - press
- (CN) China insurance regulator (CIRC)'s Huang: May YTD insurance premiums +26% y/y; Some insurers ability to pay out on claims were impaired by an overstatement of their capital
- (CN) China Banking Regulator (CBRC) Vice Chairman Wang Zhaoxing: Bank capital adequacy still at high level, but risks may be exposed during economic downturn
- (CN) PBOC Gov Zhou: Global economy still has uncertainties

Australia/New Zealand
- (AU) Australia PM Turnbull: To implement gas regulations affecting exports, effective July 1st, 2018

Korea
- (KR) South Korea military planning to conduct joint drills with US B-1B bombers today as part of scheduled exercises - press

***Asian Equity Indices/Futures (00:00ET)***
- Nikkei +1.2%, Hang Seng -0.1%, Shanghai Composite +0.1%, ASX200 -0.5%, Kospi flat
- Equity Futures: S&P500 +0.1%; Nasdaq +0.2%, Dax +0.2%, FTSE100 +0.2%

***FX ranges/Commodities/Fixed Income (00:00ET)***
- EUR 1.1140-1.1160; JPY 110.50-111.80; AUD 0.7585-0.7605; NZD 0.7220-0.7240
- Aug Gold flat at 1,247/oz; Aug Crude Oil +0.1% at $44.45/brl; July Copper -0.4% at $2.58/lb
- (CN) PBOC SETS YUAN MID POINT AT 6.8096 V 6.7972 PRIOR; Weakest Yuan fix since May 31st
- (CN) Offshore Yuan overnight Hibor rate falls to 8-moth low

***Asia equities notable movers***
Australia
- Tatts (TTS) +4.0%; Tabcorp bid for Tatts has been cleared by Australia regulators; Tabcorp will need to sell Odyssey Gaming unit in Queensland
- Oroton (ORL) +4.4%; Gives strategic review: Certain parties expressed interest in its strategic options including sale or recapitalization; Affirms FY17
- Scentre Group (SCG) -2.5%; Morgan Stanley Cuts SCG.AU to Underweight from Overweight

Japan
- Askul (2678) +9.2%; Guides FY16/17 net ¥1B, -81% y/y; Op ¥8.8B v ¥8.0B prior guided; Rev ¥335.9B v ¥335.0B prior guided
- Sharp (6753) +6.4%; To apply for TSE Section 1 listing on June 29th
- Gree (3632) +6.3%; Guides FY17 Net ¥11B v ¥13Be (prior ¥15B); due to ¥3.8B writedown

Hong Kong
- Bloomage BioTechnology Corp (963) +7.6%; Gets privatization offer at HK$16.30/shr from Grand Full Development
- Century Ginwa Retail Holdings (162) -5.3%; Guides FY17 net loss CNY352M v profit y/y
- Sino Propser (766) -8.5%; Profit warning

>>> US After Hours Summary: LPCN +38% on positive trial results... RS


After Hours Summary: LPCN +38% on positive trial results... RS -7% and CMG -2% following guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to news: LPCN +38.1% (announces LPCN 1021 achieved primary endpoints confirming the efficacy of twice daily oral administration andgenerally met the pre-specified per dose secondary endpoints for twice daily oral administration), ENPH +14.4% (Enphase Energy enters into a Master License Agreement with Flextronics Industrial), BLCM +6%, DDD +2.1%,  CFMS +0.9% (continued strength), EYEG +3.9% (indicated higher after Armistice Capital discloses 9.9% passive stake), ALXN +1.6% (CEO disclosed the purchase of 10K shares at avg price of $116.72/share), TSLA +1.3% (reports nearing deal for China production plant), MU +0.6% (after seeing afternoon strength)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: RS -6.6% (light volume), CMG -2.2%, (reaffirms/clarifies guidance for certain financial and operating results for Q2/FY17),

Companies trading lower in after hours in reaction to news: NEOS -7.3% (continued weakness), AVXS -4.3% (to offer up to $200 million of shares of its common stock in an underwritten public offering), FDUS -2.6% (commences public offering of 1.5 mln shares of its common stock), CLVS -1.7% (commences underwritten public offering of shares of its common stock to raise aggregate proceeds of ~$250 mln), TDOC -0.8% (confirms definitive agreement to acquire Best Doctors; Teladoc reiterates its previously communicated second quarter 2017)

L’ASN active son centre d’urgence à la suite d�€™un feu à la centrale nucléaire de

L’ASN active son centre d’urgence à la suite d’un feu à la centrale nucléaire de Bugey 


Le 19 juin 2017, l’Autorité de sûreté nucléaire (ASN) a activé son centre d’urgence situé à Montrouge (92) à la suite du déclenchement à 15h26 par EDF du plan d’urgence interne de la centrale nucléaire du Bugey dans le département de l’Ain (01).
Selon les premières informations dont dispose l’ASN, un feu s’est déclaré sur le toit d’un bâtiment du réacteur 5, situé en zone nucléaire de l’installation. Les pompiers sont sur site.
L’ASN suit en temps réel l’évolution de la situation, afin de s’assurer du bien-fondé des dispositions prises par l’exploitant et de conseiller la préfecture.
L’ASN est en contact avec la préfecture de l’Ain, l’exploitant EDF et l’IRSN. Elle a mobilisé sa division de Lyon géographiquement compétente.
***
La centrale de Bugey se trouve à 35 km à l'est de Lyon. Cette centrale nucléaire est constituée de 4 réacteurs à eau sous pression d'une puissance de 900 MWe chacun. Le site du Bugey comprend également un réacteur de la filière graphite-gaz en cours de démantèlement et un magasin inter-régional de stockage du combustible.

WSJ :Time Warner Signs $100 Million Deal With Snap for Shows and Ads

Time Warner Signs $100 Million Deal With Snap for Shows and Ads
Two-year Time Warner-Snap Pact Includes Commitment for Up to 10 Original Shows a Year

New shows featuring the likes of Ellen DeGeneres, Samantha Bee and Wonder Woman may soon be coming to Snapchat.

In a wide-ranging deal with Snap Inc., SNAP +3.62% Time Warner Inc.’s TWX +0.64% Turner cable channels and the Warner Bros. studio will create up to 10 original shows a year for the ephemeral messaging app in genres including scripted drama and comedy, the companies said.

The deal also includes a path for Time Warner’s premium network HBO to develop shows for the app.

Snap’s shows tend to run just three to five minutes, so traditional television companies, which are eager to reach Snapchat’s young user base, don’t view its efforts as a threat to their core pay-TV businesses.

“You can envision a lot of really compelling marketing and programming that will drive viewership to our television and film content and new users for our emerging direct-to-consumer services,” said Gary Ginsberg, Time Warner’s executive vice president of corporate marketing and communications, in an interview.

The two-year deal marks one of the largest show development deals Snap has landed to date and shows how Snap is attempting to reinvent television for young, mobile users. In a video for the company’s roadshow before its public offering, Snap’s chief strategist, Imran Khan, framed Snap’s opportunity by highlighting how young people ages 18 to 24 have shifted their attention to mobile phones from traditional TV.

“These users represent a big opportunity for us because they are harder to reach on traditional media, and they are often highly sought after by advertisers,” Mr. Khan said in the video.

The $100 million deal encompasses Time Warner’s show investment for the app as well as an advertising commitment from HBO, Warner Bros. and its Turner networks. Time Warner’s sale to AT&T Inc. is pending with regulators.

Snap will keep 50% of the ad revenue from shows, while its media partners will keep the other half, The Wall Street Journal has previously reported. It is a less attractive split than what Snap offered earlier on for its “Discover” publisher platform, where at least some partners were allowed to keep 70% of the ad revenue if they sold the ads.

Time Warner’s commitment is a vote of confidence for the young company as it seeks to convince investors its new advertising form will grow. Snap disappointed investors in May when its revenue, which comes almost entirely from advertising, surged from a year earlier, but declined sequentially for the first time.

Still, the app has become a darling for traditional media executives who are eager to reach younger viewers as traditional pay-TV cord-cutting accelerates. Snap has already signed up a variety of big media companies like Comcast Corp.’s NBCUniversal and CBS Corp. to create shows for its app, and its executives have taken a hands-on approach to curating its originals, advising traditional network executives on everything from plotlines to shooting angles.

Media executives say early viewership metrics from Snap are promising. For example, Snap said that NBC’s “The Voice” on Snapchat is up 45% in viewership in its second season. The app aims to air three shows a day by the end of the year, up from one currently.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: N/A

M&A news:
  • NVDQ +92% (to be acquired by Stryker (SYK) for $11.75/share)
  • RICE +28% (Rice Energy and EQT (EQT) acquisition confirmed for total consideration of approximately $6.7 billion)
Select Tech names showing strength:
  • FNSR +1.5%, AMD +1.4%, MU +1.3%, MOMO +1.3%, NFLX +1.1%, NVDA+1%, AMZN +0.9%, FB +0.9%, MSFT +0.8%, TSLA +0.8%
Other news:
  • CLVS +44% (reports data from Phase 3 ARIEL3 study achieved primary endpoint; plans to submit NDA in next 4 months)
  • RIGL +13.2% (FDA has accepted the New Drug Application for TAVALISSE)
  • WKHS +4.7% (unveiled its Surefly helicopter concept at the Paris Air Show (Static display B10) and released specifications. The company is now accepting pre-orders for SureFly)
  • JD +3.5% (issued an update on its Anniversary Sales)
  • HII +3.2% (confirms it has been awarded a $3 billion contract for the detail design and construction of the amphibious assault ship Bougainville)
  • VRX +3.2% (announces that its Board has elected John Paulson to serve as a director, effective June 14)
  • ADMP +2.9% (continued strength following last week's move higher)
  • AAOI +2.9% (continued strength)
  • JUNO +2% (presents data from the TRANSCEND trial of JCAR017 in relapsed and refractory aggressive B cell non-Hodgkin lymphoma)
  • HZNP +2% (Health Canada has issued a Notice of Compliance for PROCYSBI)
  • CRAY +1.9% (receives contract from New Zealand's National Institute of Water and Atmospheric Research worth $18 mln)
Analyst comments:
  • CS +3.7% (upgraded to Buy from Hold at Deutsche Bank )
  • AKS +2.8% (upgraded to Buy from Neutral at Longbow)
  • X +2.3% (upgraded to Buy from Neutral at Longbow)
  • NUE +1.1% (upgraded to Buy from Neutral at Longbow)
  • AAPL +1.1% (target raised to $180 at Maxim Group)
  • BIIB +1.1% (upgraded to Neutral from Sell at UBS)
  • AGCO +1% (upgraded to Neutral from Underperform at BofA/Merrill)
  • CNHI +0.9% (upgraded to Buy from Neutral at BofA/Merrill)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance:
  • N/A
M&A news:
  • EQT -5.4% (Rice Energy (RICE) and EQT acquisition confirmed for total consideration of ~$6.7 billion)
Other news:
  • SGEN -11.7% (discontinuing the phase 3 CASCADE clinical trial of vadastuximab talirine)
  • TSRO -11.3% (after CLVS reported positive topline data from the confirmatory phase 3 ARIEL3 trial of rucaparib; PARP competitor Tesaro trading lower in response)
  • LTBR -3.2% (files for 1,853,960 share common stock offering by Aspire Capital Fund)
Analyst comments:
  • PI -3.1% (downgraded to Equal-Weight from Overweight at Morgan Stanley)
  • TRIP -2.1% (downgraded to Underperform from Neutral at Credit Suisse)
  • LYV -1.3% (downgraded to Neutral from Buy at Northcoast)
  • IHG -1.3% (downgraded to Neutral from Outperform at Credit Suisse)

>>> JD.com 2017 anniversary sales event recorded $17.6 bln in transaction volume

--> +3.5% pre-market

JD.com 2017 anniversary sales event recorded $17.6 bln in transaction volume for first 18 days

* Says co's 2017 "6.18" anniversary sales event recorded $17.6 billion in transaction volume for the first 18 days of the sale‍​

* JD.com Inc says transaction volume for the first 18 days of its 2017 anniversary sales event increased over 50 percent versus first 18 days of last year's event Further company coverage: