(Citi) Equity Inflows Poised to Synchronize First Time Since '04

2017 has brought synchronized equity inflows to all major regions, with emerging markets and Japan drawing the most money as proportion of assets under management, Citigroup strategists led by Robert Buckland write in a note.
  • Inflows into all assets so far amount to $368 billion, close to 2012’s all-time high, Citigroup says citing EPFR Global data
  • While very high inflows in 2000 and 2007 were an indicator of impending bear markets, recent inflows “reassuringly” are well below those seen at previous market peaks
  • EM and developed market equity funds have seen inflows every month YTD, a trend last seen in 2006
    • Flows into Europe picked up as French political risks receded, but at the expense of U.S. equities, which have started to see redemptions

WSJ : As Allegations Swirl Around SoftBank, It Calls Them ‘Sabotage’

As Allegations Swirl Around SoftBank, It Calls Them ‘Sabotage’
Accusations include kickbacks to executives as part of start-up investments in India by Japanese company

A contentious back-and-forth between SoftBank Group Corp. 9984 0.90% and attorneys who say they represent anonymous, disgruntled shareholders is riling the Japanese telecommunications titan.

The difficulties for SoftBank come as it is poised to begin investing $100 billion in technology startups around the world, and they have drawn concern from a Saudi Arabian investment vehicle that is set to commit $45 billion to the SoftBank technology fund.

The allegations from the attorneys have lingered over the past year about the conduct of top SoftBank executives, especially in India. The company announced last week it had taken a loss on $1.4 billion on investments, largely in Indian startups. In March, a complaint was submitted to an Indian financial regulator purporting to identify financial malfeasance in those deals, including that current or former SoftBank executives received kickbacks connected with the investments.

It isn’t known whether Indian authorities have decided to pursue any formal investigation. SoftBank has denied all the allegations and is working to stop the letter-writing campaign by bringing a criminal complaint in Switzerland and stepping up an international investigation into the identity of the person or people behind the complaints.

SoftBank said this week that the allegations are false and part of a “malicious smear campaign” based on “falsehoods and innuendo.”

On April 30, the head of Saudi Arabia’s Public Investment Fund—which last year pledged to commit the $45 billion to the Softbank fund—wrote a letter to SoftBank’s board asking for more information about the allegations and SoftBank’s internal inquiries, according to a copy of the letter reviewed by The Wall Street Journal. PIF declined to comment

The accusations have come in the form of a series of letters from law firms and a Swiss consultant who claim to represent an undisclosed number of SoftBank shareholders. The lawyers and consultant declined to identify the shareholders, and nothing could be learned of their motives.

Besides kickbacks, the accusations include conflicts of interests, in which executives allegedly had personal investments connected to SoftBank consultants; and an improper consulting arrangement involving a shell company in the British Virgin Islands.

While it is unclear who filed the complaint with the Indian government, the other allegations against SoftBank come in letters made public and others sent over the past year to the company’s board from Nicolas Giannakopoulos, a consultant based in Switzerland, and two American law firms that say they represented other SoftBank shareholders.

In December, SoftBank filed a criminal defamation complaint in Switzerland against Mr. Giannakopoulos. It has hired global investigations firm Kroll Inc. to unmask any backers Mr. Giannakopoulos may have—and to try to figure out who else might be behind the campaign.

On his LinkedIn profile, Mr. Giannakopoulos describes himself as a private security and investigations consultant.

In public letters, Mr. Giannakopoulos asked the firm to oust the president and chief financial officer of its international arm, Alok Sama, over alleged financial misdeeds. The company says Mr. Sama did nothing wrong.

Mr. Giannakopoulos said this week he hadn’t received a copy of the defamation complaint. “As an investor in SoftBank, I expected the company to be interested in investigating the issues I raised,” he said in a statement, “but the board seems more interested in trying to attack me than in protecting its shareholders.”

The two New York law firms making allegations, Boies, Schiller & Flexner LLP and Mintz & Gold LLP, declined to identify the shareholders they represent. They declined to comment beyond the letters they had sent to the SoftBank board detailing their concerns.

The Journal reviewed the complaint in India but the name is obscured. It was lodged with the Enforcement Directorate of the Indian Finance Ministry. The directorate didn’t respond to requests for comment about the complaint.

The complaint alleges Mr. Sama and former SoftBank president Nikesh Arora received kickbacks from companies SoftBank invested in as the firm poured money into lndian startups in recent years.

“None of the allegations contain even a shred of truth,” Mr. Arora said in a statement. Mr. Sama called the allegations “corporate terrorism masquerading as shareholder activism” and said they are based on “obvious untruths.”

The campaign amounts to “disgraceful corporate blackmail” or “sabotage,” said Ronald Fisher, a SoftBank director. “We have no understanding of what’s driving it.”

SoftBank’s Indian investments were made in high-profile startups, including e-commerce company Snapdeal.com, ride-hailing service Ola and real-estate search portal Housing.com.

An Ola spokesman declined to comment. A Snapdeal.com spokeswoman didn’t immediately respond to a request for comment. A Housing.com spokeswoman declined to comment

In January, Housing.com merged with online real-estate firm PropTiger.com, which is backed by News Corp . , the parent company of the Journal. A News Corp spokesman declined to comment.

Among the theories SoftBank management is considering is whether insiders could be involved in the campaign, according to people familiar with their probe. Some of the allegations rely on private documents, the people said, and may have been obtained via hacking.

SoftBank in October launched the Vision Fund, teaming with PIF, to create what could be a powerhouse investor in technology over the next decade. An announcement about the closing of the fund could come as early as this week, according to a person involved in the negotiations.

SoftBank last year assigned a committee of independent directors and the law firm of Shearman & Sterling LLP to investigate claims raised in the letters to the SoftBank board. The company said the probe found no evidence of wrongdoing. Another firm, Morrison & Foerster LLP, conducted a second, more recent investigation that reached the same conclusion, SoftBank said.

One of the allegations made in the complaint to India’s Enforcement Directorate is that Mr. Sama holds a personal investment connected to Raine Group, a U.S. merchant bank that consults for SoftBank.

SoftBank said its investigation found that Mr. Sama indeed held a stake in a Raine Group investment fund, and that it had been disclosed appropriately when he joined the company in 2015. SoftBank made a $150 million investment in Raine Group in February.

Mr. Sama’s investment has no connection to Raine’s advisory business that earns fees from working with SoftBank, said Jeff Sine, co-founder of Raine Group.

The allegations against Mr. Arora first surfaced last year, just under two years after he joined SoftBank as its No. 2 executive and potential successor to Masayoshi Son, the Japanese billionaire founder of the company.

Mr. Arora was hired away from Google Inc. He resigned abruptly last year after, he said, Mr. Son told him he wouldn’t swiftly step aside for Mr. Arora to become chief executive. His resignation came after the allegations surfaced.

A January 2016 letter, sent to SoftBank by Boies, Schiller & Flexner and made public by the law firm, alleged Mr. Arora had conflicts of interest related to Indian deals. The firm says it represented a group of anonymous investors in SoftBank and its subsidiary Sprint Corp. Mintz & Gold LLP, another law firm, later took over the matter.

Then, in October, Mr. Giannakopoulos sent a letter to Mr. Son saying he represented SoftBank shareholders concerned about Mr. Sama’s financial dealings, including payments made to him in connection with consulting on investments in the Indian companies.

The complaint sent to Indian authorities also points to those alleged payments. Other documents reviewed by the Journal show Mr. Sama was paid $250,000 a month by SoftBank for six months of work related to three SoftBank deals as well as a $3 million success fee, all through a British Virgin Islands company.

SoftBank said the arrangement had been disclosed and approved by Mr. Fisher, the SoftBank director. Mr. Fisher said he personally negotiated Mr. Sama’s increased compensation and that Mr. Sama’s work helped the company avoid substantial investment-banking fees.

Mr. Fisher said the investigation caused the board to have a broader “dialogue” that led to creating an independent compensation committee.

FT : Singapore Airlines shares fall most since 2008 after surprise 4Q loss

Singapore Airlines shares fall most since 2008 after surprise 4Q loss

Shares in Singapore Airlines are eyeing their biggest one-day drop since the financial crisis after the carrier revealed its first quarterly loss in more than seven years and announced it would reintegrate its cargo division into the broader group.

Hampered by “intense competition”, rising cost pressures and the reinstatement of a fine related to anticompetitive behaviour in its cargo division, Singapore Airlines (SIA) posted a surprise loss in the fourth quarter and said it would conduct a strategic review of its portfolio.

Group revenues in the three months to March 31 were basically flat from a year earlier at S$3.72bn ($2.7bn), it revealed after close of market on Thursday. Rising cost pressures cut into operating profit, which fell 82 per cent to S$27.6m from a year earlier.

But the biggest hit to net profit was a S$132m provision relating to a European anticompetition ruling against its cargo unit.

The bottom line result was a loss of S$138.3m – its first quarterly loss since the September quarter of 2009 – well below analysts’ expectations for a profit of S$54.3m and compared to S$224.7m a year ago.

For the full year, revenue fell 2 per cent to S$14.87bn and net profit sank 55.2 per cent to S$360.4m.

SIA made the S$132m provision after revealing in March the European Commission decided to reinstate a decision to fine several airlines a combined €776m for their part in air cargo price-fixing cartel from December 1999 to February 2006. The company also accounted for an expected refund of a S$117m fine from the previous year, but this was not forthcoming.

SIA shares were down 6.4 per cent during lunchtime trade in Singapore at their lowest level since the end of March. Shares were facing their biggest one-day drop since November 6, 2008 when they sank 7.2 per cent, and had been off as much as 6.7 per cent on Friday.

Of the outlook, the carrier said “intense competition arising from excess capacity in major markets, alongside geopolitical and economic uncertainty, continue to exert pressure on yields”, while fuel prices were expected to remain “volatile in the near term”.

The airline said today that SIA Cargo, a wholly-owned subsidiary, would be reintegrated as a division of the overall group, but the move was not expected to have a material impact on the company’s performance in the current financial year. SIA Cargo became a separate company within SIA Group in 2001.

Goh Choon Phong, SIA’s chief executive, said:

Re-integrating SIA Cargo as a Division within Singapore Airlines makes sense from a business standpoint. It will improve efficiency and offer greater flexibility for staff deployment by maximising synergies with the larger SIA business.

(CS) DBK : Reinstate an Underperform rating

We reinstate coverage on DBK that has made significant progress on capital and litigation risk. The issue of core profitability remains and, with earnings momentum still negative, it is likely to constrain performance. DBK targets a 10% ROTE which implies more than E9bn of pretax profit compared with E5.0bn adjusted in 2016 (excluding non-core). We model E7.4bn adjusted and E6.4bn stated PBT in 2019 which makes for a 5.7% headline ROTE. Trading at 0.6x TBV for a 2019E ROTE of 5.6% and with a 2017E dividend yield of 0.7% versus the sector on 4.2%, we see greater upside elsewhere.

>>> What to look at today - 19th of May 2017

Dow +0.27% S&P +0.37% Nasdaq +0.73% Russell +0.38%
Investors 'bought the dip' on Thursday as the major averages enjoyed a bounce-back performance following the stock market's worst one-day decline in eight months the day before. A solid performance from the semiconductor and biotechnology industries helped the market. The iShares MSCI Brazil Capped ETF (EWZ 32.75, -6.39) plunged 16.3% while theiShares MSCI Emerging Markets ETF (EEM 40.29, -0.68) lost 1.7%. However, the endless squabble in Washington kept a lid on the day's bullish sentiment. The real concern for investors isn't so much the headlines themselves, rather, it's the notion that President Trump's pro-growth agenda items (i.e. tax reform, deregulation, and infrastructure spending) might not come to fruition as quickly as envisioned (i.e. before the end of the year) or perhaps at all. WMT +3.2% after better earnings CSCO -7.2% after disap. rev. In the end, nine of eleven sectors finished in positive territory with nearly all groups posting gains between 0.1% and 0.6%. The energy sector (-0.1%) settled at the bottom of the leaderboard, despite crude oil climbing 0.7% to $49.26/bbl, while the lightly-weighted telecom services group (+1.2%) finished at the top. US After Hours SPWH / ADSK +10%, MCK +8%, ROST / GPS +4% following earnings/guidance, Brazil ADRs rebounding. Asian indices are mixed, tracking a day of stabilization on Wall St where equities recovered, treasury yields found support, Gold returned below $1,250, and Fed Funds futures outlook for June hike was back above 70%. Investors noted a big beat in the Philly Fed index and a slide in weekly jobless claims as evidence the political turmoil may not overshadow economic recovery that follows a soft Q1. Among notable corporates, Takata was limit-up after reports of a settlement with top automakers. Toshiba also traded higher as Broadcom/KKR and Bain/Hynix partnerships battled out for the chip stake

Nikkei +0.23% Hang Seng +0.26% CSI -0.02% Shanghai -0.08%

Eur$ 1.1112 CNH 6.8872 CNY 6.8932 JPY 111.40 GBP 1.2952 CHF 0.9804 RUB 57.3866 WTI$ 49.79 +0.89%

S&P +0.03% EuroStoxx +0.22% Dax +0.20% FTSE +0.45% SMI +0.22%

Macro :
- Kushner Asked Lockheed to Cut Radar Price for Saudi Deal: NYT
- SALT Day 2 WRAP: Chanos Short Mallinckrodt, Karp Likes Sarepta
- What’s Next as The President Refuses to Step Down: Inside Brazil
- S&P 500 Technicals Still Point to New Highs Ahead: JPMorgan
- German GDP Growth Seen Steady at 0.6% in 2Q: IWH for WiWo

Keep an eye on :
- AC FP : AccorHotels Board Approves Separation of HotelInvest
- AIR FP : GKN Workers at Airbus A350, A400M Plant Vote to Strike Over Pay
- AREVA FP : Areva Plans Capital Increases Reserved for French State in 3Q
- ASTON IPO : Aston Martin Said to Consider London IPO as Soon as Next Year
- BMW GY : BMW Opens EU1b China Plant Expansion, Flags Future Investment
- BOI FP : Boiron Says Class Action Suit in Canada to Continue on Merits
- CLX SS : CLX Sets New Financial Targets, Wants to Reinvest Earnings
- BN FP : Danone Targets Recurring Op. Margin >16% in 2020
- DBK GY : Deutsche Bank AGM Rejects Call for Audit on Chairman Achleitner
- DTE GY : T-Mobile Deal Options Include Sprint, Amazon, Says DealReporter
- DUFN VX : Richemont Acquires 5% Stake in Dufry: SIX Regulatory Filing
- ERICB SS : Ericsson Said to Win Scandinavian Network Deal With Hutchison
- ENX FP : Euronext 1Q Revenue EU127m
- GKN LN : GKN Workers at Airbus A350, A400M Plant Vote to Strike Over Pay
- GLEN LN : Glencore to Sell Stake on Port Kembla, Tahmoor: Australian
- BAER VX : Julius Baer in Talks to Buy Stake in Argentina’s TPCG: Reuters
- SDF GY : K+S May Have Found Anchor Shareholder, Platow Brief Says
- LDO IM : Leonardo Says Former CEO Moretti to Get More Than EU9.4m
- LMT US : Kushner Asked Lockheed to Cut Radar Price for Saudi Deal: NYT
- LMT US : Saudis Said to Forge $6b Lockheed Deal for Littoral Ships
- ORA FP : Orange in Talks to Buy Majority Stake in Business & Decision
- NVDA US : Nvidia May Still Be Underestimated After 500% Gain: Bernstein
- RNO FP : Renault Sold About 10,000 Zoe Cars in France in 2016: Feunteu
- CFR VX : Richemont Acquires 5% Stake in Dufry: SIX Regulatory Filing
- RR/ LN : Rolls-Royce in Talks With China’s Comac on Wide-Body: Daily
- GLE FP : SocGen Still Preferred French Bank at Jefferies, PT Increased
- TPZ SM : Telepizza Places 11.3m Shares for EU4.60 Each: Filing
- VIV FP : Total U.S. Video Game Sales Rose 10% Y/y in April to $636m: NPD
- VOW3 GY : VW’s Mueller Rejects Market Manipulation Allegations: HB
- VOW3 GY : Ducati attracts interest of Harley Davidson - Milano Finanza

>>> Europe : Brokers Upgrades & DOwngrades - 19th of May 2017

>>> Up|
*Buzzi Unicem Raised to Buy at Berenberg
*Hellenic Petroleum Raised to Add at AlphaValue
*Lundin Mining Raised to Buy at Berenberg
*Mediaset Espana Raised to Add at AlphaValue
*Senior Raised to Strong Buy at Raymond James, PT 260p
*SIG Raised to Buy at Peel Hunt
*Umicore Raised to Buy at UBS, PT EU75
*UniCredit Raised to Add at AlphaValue
*UPM Raised to Add at AlphaValue
*Wal-Mart Raised to Market Perform at BMO, PT $80

>>> Down
*Antofagasta Cut to Sell at Deutsche Bank, PT 700p
*British Land Cut to Neutral at JPMorgan, PT 700p
*Experian Cut to Hold at Jefferies, PT 1,550p
*Gas Natural Cut to Reduce at HSBC
*Grand City Properties Cut to Hold at Commerzbank, PT EU18.50
*Johnson Matthey Cut to Sell at UBS, PT 2,750p
*Kering Cut to Equal-weight at Morgan Stanley, PT EU320
*Land Securities Cut to Neutral at JPMorgan, PT 1,200p
*Polymetal Cut to Hold at Berenberg
*Shire Cut to Reduce at HSBC
*Tethys Oil Cut to Hold at GMP, PT SEK70
*Thomas Cook Cut to Equal-weight at Barclays
*Vodafone Cut to Equal-weight at Barclays

>>> Initiation
*Deutsche Bank Reinstated Underperform at Credit Suisse
*EDF Resumed Underweight at Morgan Stanley, PT EU8
*VIFOR PHARMA RATED NEW HOLD AT DEUTSCHE BANK; PT CHF1,250

>>> Ducati attracts interest of Harley Davidson - report (translated)

Ducati attracts interest of Harley Davidson - report (translated)
19 MAY 2017
Ducati, an Italian motorcycle maker owned by German car manufacturer Volkswagen [ETR:VOW], has attracted the interest of Harley Davidson [NYSE: HOG], Italian-language daily Milano Finanza reported. The report cited a source close to the dossier and said that a delegation from the US motorcycle manufacturer has been visiting the Ducati site since 17 May with a view to making a bid for the company.
The item added that major private equity funds such as KKR [NYSE: KKR] and Blackstone [NYSE:BX], as well as Middle East sovereign wealth fund could be interested. The report said that Investindustrial, which sold Ducati in 2012 could also make an offer, as Ducati would complement Aston Martin, the luxury car manufacturer controlled by Investindustrial.
The report noted that other industrial bidders could include Polaris [NYSE: PII] and Indian vehicle manufacturer Bajaj Auto [NSE: BAJAJ-AUTO].
Ducati could be worth EUR 1bn- EUR 1.5bn, the report added.

>>> Asian Update

Asia Mid-Session Market Update: Volatility subsides as Trump heads to Israel

***US Session Highlights***
- (US) INITIAL JOBLESS CLAIMS: 232K V 240KE; CONTINUING CLAIMS: 1.90M V 1.95ME
- (US) MAY PHILADELPHIA FED BUSINESS OUTLOOK: 38.8 V 18.5E; new orders remain strong
- (US) Treasury Sec Mnuchin: affirms 3% or higher GDP growth is achievable if we reform taxes and regulation; reiterates plan to provide middle-class tax relief; we've had no talks about a national sales tax; on Glass-Steagall, Treasury does not support separation of banks from investment banks
- (US) APR LEADING INDEX: 0.3% V 0.4%E
- (US) March Factory Orders revised higher to +0.5% from +0.2%, Durables Orders revised higher to +1.7% from +0.9%
- All major stock indices recovered some lost ground as investors regained confidence in the markets as an independent counselor was appointed by the Justice Department to investigate the claims of Russian contacts with the Trump campaign. Stocks were also helped by strong data and higher energy prices. The US dollar regained some lost ground against most Majors and the 10-year Treasury yield stabilized at 2.23%.

***US markets on close: Dow +0.3%, S&P500 +0.4%, Nasdaq +0.7%***
- Best Sector in S&P500: Telecom
- Worst Sector in S&P500: Energy
- Biggest gainers: INCY +6.9%; KMX +6.2%; NVDA +5.4%
- Biggest losers: CSCO -7.2%; MNK -3.5%; PRGO -3.5%
- At the close: VIX 15.7 (-0.9pts); Treasuries: 2-yr 1.28% (+2bps), 10-yr 2.23% (+2bps), 30-yr 2.91% (+1bps)

**US movers afterhours***
- ADSK: Reports Q1 -$0.16 v -$0.23e, R$486M v $473Me- Guides Q2 -$0.18 to -$0.14 v -$0.15e, R$488-500M v $489Me ; +10.1% afterhours
- SPWH: Reports Q1 -$0.08 v -$0.07e, R$156.9M v $151Me- Guides Q2 $0.12-0.14 v $0.13e, R$189-194M v $189Me, SSS +8% to +10% ; +9.9% afterhours
- MCK: Reports Q4 $3.42 v $3.04e, R$48.7B v $49.8Be- Guides initial FY18 adj EPS $11.75-12.45 v $11.51e ; +8.2% afterhours
- SB: Reports Q1 -$0.07 v -$0.09e, R$33.3M v $28.5Me; +7.8% afterhours
- ROST: Reports Q1 $0.82 v $0.79e, R$3.31B v $3.27Be; +4.2% afterhours
- GPS: Reports Q1 $0.36 v $0.29e, R$3.44B v $3.41Be; affirms FY17 $1.95-2.05 v $1.98e (prior $1.95-2.05); +4.1% afterhours
- CRM: Reports Q1 $0.28 v $0.26e, R$2.39B v $2.35Be; +1.4% afterhours

***Key economic data***
- (NZ) NEW ZEALAND APR CREDIT CARD SPENDING M/M: 0.9% V 0.8% PRIOR; Y/Y: 6.4% V 7.1% PRIOR
- (NZ) New Zealand Mar Net Migration: 5.8K v 6.1K prior; Annual net migration 71.9K v 68.1K y/y
- (CL) CHILE CENTRAL BANK (BCCH) CUTS OVERNIGHT RATE TARGET BY 25BPS TO 2.50%; NOT EXPECTED
- (MY) Malaysia Q1 GDP Q/Q: 1.8% v 1.2%e v 1.4% prior; Y/Y: 5.6% v 4.8%e

***Asia Session Notable Observations, Speakers and Press***
- Asian indices are mixed, tracking a day of stabilization on Wall St where equities recovered, treasury yields found support, Gold returned below $1,250, and Fed Funds futures outlook for June hike was back above 70%. Investors noted a big beat in the Philly Fed index and a slide in weekly jobless claims as evidence the political turmoil may not overshadow economic recovery that follows a soft Q1. Pres Trump was also largely quiet aside from overnight tweets claiming extreme press bias against his administration as he prepared to travel to Israel on Friday for his first official out-of-state visit. Trump's 9-day trip will also take him to Saudi Arabia and Brussels to discuss the NATO treaty with European leaders. In FX, USD/JPY was the most volatile among the majors, slipping some 50pips from the early highs around 111.10, while AUD and NZD traded within 25pip ranges against USD. Momentum in Oil Price bounce also remained, with WTI rising above 49.80 for a 4-week high.
- Economic data were limited to New Zealand, where card spending continued to rise and net migration hit new record highs. Earlier, both Chile and Mexico central banks surprised with a 25bp rate cut against anticipated hold, citing external challenges.
- Among notable corporates, Takata was limit-up after reports of a settlement with top automakers. Toshiba also traded higher as Broadcom/KKR and Bain/Hynix partnerships battled out for the chip stake.

China
- (CN) Two China fighter jets flew within 150 feet of a USAF jet while it was flying in international air space over Yellow Sea - US press
- (CN) Fitch: China hard landing risks are receding; Geopolitical risks on the rise
- (CN) China financial companies said to have issued CNY168T in wealth management products (WMPs) in 2016 - Chinese press
- (CN) China may add to pension fund by using state capital - Chinese Press

Korea
- (KR) China Pres Xi said to have told South Korea envoy he is willing to work to put bilateral relations on normal track - press
- (KR) US Navy said to have moved a 2nd aircraft carrier near North Korea - US press

***Asian Equity Indices/Futures (23:30ET)***
- Nikkei -0.2%, Hang Seng +0.3%, Shanghai Composite -0.1%, ASX200 -0.3%, Kospi +0.1%
- Equity Futures: S&P500 -0.1%; Nasdaq -0.1%, Dax -0.1%, FTSE100 flat

***FX ranges/Commodities/Fixed Income (23:30ET)***
- EUR 1.1095-1.1115; JPY 111.10-111.60; AUD 0.7405-0.7430; NZD 0.6880-0.6900
- June Gold -0.3% at 1,250/oz; June Crude Oil +0.8% at $49.73/brl; July Copper +0.1% at $2.54/lb
- SPDR Gold Trust ETF daily holdings fall 1.2 tonns to at 851.9 tonnes; 5th straight decline
- iShares Silver Trust ETF daily holdings rise to 10,693 tonnes from 10,660 tonnes prior (4th straight increase)
- (CN) China Finance Ministry sells 50-yr bonds at 4.08%, bid-to-cover 1.89x
- (CN) PBOC SETS YUAN MID POINT AT 6.8786 V 6.8612 PRIOR; first weaker Yuan fix in 7 sessions; biggest margin of weakness since Feb 20th
- (CN) PBOC to skip open market opeations v CNY80B prior injected; Sees banking liquidity at appropriate level
- (AU) Australia MoF (AOFM) sells A$900M in 2.0% 2021 Bonds; avg yield: 1.980% v 2.044% prior; bid-to-cover: 3.48x v 4.96x prior

***Asia equities notable movers***
Australia
- Fairfax Media (FXJ) -0.2%; TPG Capital and Hellman & Friedman have each asked for 4-5 weeks to perform due diligence on Fairfax; Bids unlikely to firm until FY17/18 - AFR
- Ooh!Media (OML) -0.7%; Confirms termination of APN deal on regulatory concerns

Japan
- Takata (7312) +20.0%; Trades limit-up 20% following $553M settlement with automakers
- Toshiba (6502) +3.1%; Broadcom/KKR partnership said to be the leading bidder for chip unit, offering ¥2.2T
- Renesas (6723) +2.7%; Strength attributed to announcement of plan by INCJ to sell shares in Renesas
- Kobe Steel (5406) +1.5%; Began production of aluminum sheet for cars in China - Nikkei
- SKY Perfect JSAT (9412) -4.2%; Reports FY16/17

Hong Kong
- Evergrande (3333) +9.7%; S&P raises rating to B from B-; Outlook Stable
- Global Tech (143) +3.8%; H1 result
- Cogobuy Group (400) -5.1%; Q1 result

>>>US After Hours Summary: SPWH / ADSK +10%, MCK +8%, ROST / GPS +4%

After Hours Summary: SPWH / ADSK +10%, MCK +8%, ROST / GPS +4% following earnings/guidance, Brazil ADRs rebounding

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SPWH +10.4%, ADSK +9.8%, SB +7.8%, MCK +7.5%, ROST +4.2%, GPS +4.1%, CRM +1.3%, AMAT +1.2%,

Companies trading higher in after hours in reaction to news: PTXP +19.3% (Energy Transfer Partners announces tender offer to purchase common units of PennTex Midstream Partners for $20.00 per unit in cash), VTL +9.6% (initiated with Outperform at Raymond James; tgt $6), GLYC +6.8% (seeing continued strength in after hours - being attributed to positive Suntrust comments), GBT +6.4% (ticking higher; announces new data supporting its GBT440 program in sickle cell disease will be presented at the upcoming 22nd Congress of the European Hematology Association), SNGX +5% (indicated higher after Randal Kirk - in joint filing with Third Security/Intrexon- disclosed slightly increased active stake to 7.9%), PXLW +2% (Pixelworks to acquire ViXS in an all-stock transaction consisting of approximately 3.7 million shares of Pixelworks common stock valued at approximately US$20.2 million), GNC +0.9% (Director disclosed purchase of 36.4K shares worth approx $250K)

Brazil ADRs are modestly rebounding in after hours trade: BBD +2.7%, PBR +2.3%, GGB +1.9%, GOL +1.6%, BSBR +0.8%, VALE +0.8%

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: GLOB -2.5%,

Companies trading lower in after hours in reaction to news: XBIT -15% (received a negative opinion from the European Medicines Agency's CHMP for its Marketing Authorization Application for its lead product candidate in Europe), HALO -8.1% (announces $100 mln public offering of common stock), GSBD -3% (prices 3.25 mln share common stock offering at $22.50/share)