>>> Caterpillar beats by $0.65, beats on revs; guides FY17 EPS above consensus,

Caterpillar beats by $0.65, beats on revs; guides FY17 EPS above consensus, revs above consensus (96.81)
  • Reports Q1 (Mar) earnings of $1.28 per share, excluding non-recurring items, $0.65 better than the Capital IQ Consensus of $0.63. Excluding restructuring costs, first-quarter 2017 profit per share was $1.28, double first-quarter 2016 profit per share excluding restructuring costs of $0.64 per share; revenues rose 3.8% year/year to $9.82 bln vs the $9.27 bln Capital IQ Consensus.
    • The increase was primarily due to higher sales volume, with the most significant increase in Resource Industries mostly due to higher end-user demand for aftermarket parts. Sales volume for Energy & Transportation increased slightly; Construction Industries' sales volume was about flat; Financial Products' segment revenues increased 2 percent.
    • Asia/Pacific sales increased 12 percent primarily due to an increase in construction equipment sales in China; Higher commodity prices and increased mining production favorably impacted demand for aftermarket parts in Australia; Sales increased 14 percent in Latin America primarily due to stabilizing economic conditions; North America sales were flat as higher demand for aftermarket parts was offset by lower end-user demand for new equipment and the unfavorable impact of changes in dealer inventories as dealers increased inventories more in the first quarter of 2016 than in the first quarter of 2017.
  • Co issues upside guidance for FY17, sees EPS of approx $3.75, excluding non-recurring items, vs. $3.26 Capital IQ Consensus Estimate; sees FY17 revs of $38-41 bln (Prior $36-39 bln) vs. $38.24 bln Capital IQ Consensus Estimate.
    • Restructuring costs expected in 2017 are significantly higher than the prior outlook primarily due to ongoing manufacturing facility consolidations. The company expects to incur about $1.25 billion of restructuring costs in 2017, an increase of $750 million from the prior outlook, as the current outlook now includes restructuring costs for recently announced actions at manufacturing facilities in Gosselies, Belgium, and Aurora, Illinois.

>>> McDonald's beats by $0.14, beats on revs (134.23)

McDonald's beats by $0.14, beats on revs (134.23)
  • Reports Q1 (Mar) earnings of $1.47 per share, $0.14 better than the Capital IQ Consensus of $1.33; revenues fell 3.9% year/year to $5.68 bln vs the $5.53 bln Capital IQ Consensus.
  • Comps +4% vs. estimates near +1.5%, reflecting positive comparable sales in all segments while up against an extra day in 2016 due to leap year
    • In the U.S., first quarter comparable sales increased 1.7%, building upon strong prior year results that benefited from the launch of All Day Breakfast. The U.S. continues to strengthen its foundation as it executes strategic menu, value and convenience initiatives, with first quarter performance benefiting from the expansion of All Day Breakfast offerings, along with the Big Mac and beverage value promotions. Operating income for the quarter increased 13%, reflecting savings from the Company's recent G&A and refranchising initiatives, a gain from the strategic sale of a restaurant property and higher franchised margin dollars. The U.S. continues to focus its efforts on driving guest count growth.
    • Comparable sales for the International Lead segment increased 2.8% for the quarter, primarily driven by continued momentum in the U.K. and Canada's successful launch of All Day Breakfast. The segment's operating income increased 2% (6% in constant currencies), fueled by sales-driven improvements in franchised margin dollars across most markets.
    • In the High Growth segment, first quarter comparable sales increased 3.8%, led by strong performance in China and positive results across the entire segment. The segment's operating income rose 36% (38% in constant currencies), with about half of the increase resulting from lower depreciation expense due to the accounting treatment of the pending sale of the China and Hong Kong businesses. Results also benefited from prior year VAT reform in China.
    • In the Foundational Markets & Corporate segment, first quarter comparable sales rose 10.7% and operating income increased significantly, led by very strong performance in Japan as well as strong results across the segment's other geographic regions.

>>> PACCAR reports EPS in-line, beats on revs (67.73)

PACCAR reports EPS in-line, beats on revs (67.73)
  • Reports Q1 (Mar) earnings of $0.88 per share, in-line with the Capital IQ Consensus of $0.88; revenues fell 1.4% year/year to $4.24 bln vs the $3.85 bln Capital IQ Consensus.
    • "We've increased our estimate of 2017 European truck industry registrations in the above 16-tonne truck segment to a range of 270,000-300,000 vehicles."
    • Class 8 truck industry retail sales for the U.S. and Canada in 2017 are expected to be in a range of 190,000-220,000 vehicles.
    • In 2017, capital expenditures of $375-$425 million and research and development expenses of $250-$280 million are targeted for truck and powertrain product development, enhanced manufacturing facilities and aftermarket support programs.

>>> Tiffany : Dutch court backs Swatch in row with Tiffany over venture

Tiffany : Dutch court backs Swatch in row with Tiffany over venture

A Dutch appeals court ruled on Tuesday that Swatch Group (>> The Swatch Group SA) deserves compensation in a row with U.S. luxury goods maker Tiffany over a failed watch venture.
A Dutch appeals court ruled on Tuesday that Swatch Group (>> The Swatch Group SA) deserves compensation in a row with U.S. luxury goods maker Tiffany over a failed watch venture.

Tiffany (>> Tiffany & Co.) was ordered in December 2013 to pay Swatch 402 million Swiss francs ($404.3 million) in damages over their failed joint venture to produce and market watches, but a lower Dutch court had set aside the ruling in 2015. Swatch appealed against the decision.

Swatch has now won the appeal, a spokesman for the court in Amsterdam said.

>>> Naturgas Energia owner EDP closes sale to JPMorgan Asset Management, Abu Dha

Naturgas Energia owner EDP closes sale to JPMorgan Asset Management, Abu Dhabi Investment Council, Swiss Life Asset Managers and Covalis Capital

Pursuant to the terms and for the purposes of the article 17 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council and of article 248 of the Portuguese Securities code, EDP - Energias de Portugal SA [ELI: EDP] is providing the following information to the market:
EDP and the consortium of investors comprising institutional investors advised by JPMorgan Asset Management, the Abu Dhabi Investment Council, Swiss Life Asset Managers and Covalis Capital, have signed today definitive agreements, as per the Binding Offer accepted by EDP, to acquire 100% of the share capital of Naturgas Energía Distribución, EDP’s gas distribution subsidiary in Spain.

White Summit Capital and Covalis Capital coordinated the consortium and are providing ongoing services.

The completion of the proposed transaction will be subject to the customary regulatory approvals and is expected to occur by end of 2Q17 or early 3Q17.

MAKOR FIRST READ: CDI/ MC: Introducing french investors to reverse Morris Tr

Offer is subject to financing which means that this is not an offer....yet.... 

Quite an interesting one... Cautious in regards to approval.... And timing....

My reading would be that given LVMH is paying with RMS shares, "the satisfactory financing conditions" have to be somewhat related to that portion of the financing not the debt....

We have stressed in previous transactions the need for an offer in France to be irrevocable.... Hence financing has to be in place, I doubt LVMH is quoting satisfactory financing conditions in regards to the debt financing rather, they are looking at a favourable tax opinion regarding the divestiture of the RMS stake. Please note that the RMS shares will be offered ex dividend....

TIMING:

Antitrust traditional has never been an issue in the sector, but given the foothold in Chinese market with are venturing in unknown territories....

The main driver of the timing will be filing of the offer doc and getting an opinion from " commissaire aux apports", which is the independent expert giving its opinion the value of a merger.... 6months top of my head....

Basically this is to the best of my knowledge the first Reverse Morris Trust transaction in France... We will get legal opinion before making any further comments as to the tax treatment for Arnault, and what the french regulator will say about it
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>>> What to look at today - 25th of April

Dow +1.05% S&P +1.08% Nasdaq +1.24% Russell +1.31%
US MArket closed higher pushed by higher Euro & Positive outcome from french elections. Equities finished higher around the globe following the French vote with France's CAC (+4.1%) leading the charge, settling at its highest mark in nearly a decade. Likewise, U.S. equities jolted higher at the start of Monday's session, however, they had a difficult time adding much to the early gain. Several factors can be attributed to capping the bullish sentiment, but the leading culprit was the possibility of a U.S. government shutdown. Congress will return from its spring recess tomorrow, giving legislators just four days to pass a new spending bill and keep the government afloat. The deadline was expected to be a non-event as it's in no party's interest to force a closure, however, reports indicate that President Trump may attempt to leverage the situation to fund his promised barrier along the U.S./Mexico border. The aggressive tactic could definitely complicate matters. President Trump is aiming to lower the corporate tax rate to 15.0%, according to today's report from The Wall Street Journal. Crude settled 0.8% lower at $49.23/bbl. HUM +3%, RRC +3%, AA +2% higher on earnings/guidance... ESRX -15%, SWFT -6%, ABX -3.6%, CNI -1.6%, WHR -1% lower following earnings/guidance, WPZ -1.7% cuts dividend. Asian indices continued to trend higher, tracking outsized rally on Wall St on the heels of market-friendly French presidential elections Round 1 results.

Nikkei +1.08% Hang Seng +1.01% CSI +0.33% Shanghai +0.26%

Eur$ 1.0867 CNH 6.8855 CNY 6.8838 JPY 110.25 GBP 1.2797 CHF 0.9958 RUB 55.76

SPX +0.18% EuroStoxx +0.48% FTSE +0.24% Dax +0.36% SMI +0.37%

Macro :
- Trump Said to Order Push to Cut Corporate Tax Rate to 15%: WSJ
- Macron Would Get 64%, Le Pen 36% in 2nd Round: Elabe Poll
- Iran Seeks $3b Funding to Build 480k B/D Condensate Plant

Keep an eye on :
- ABBN VX : ABB Ties With IBM to Develop Decision-Making Factory Robots
- AKZA NA : Akzo Nobel Must Enter Talks With PPG: Columbia Threadneedle
- ABS US : Albertsons Said Exploring Bid for Grocer Whole Foods: FT
- AZA IM : Alitalia Workers Vote Against Restructuring Plan: Uiltrasporti
- ASMI NA : ASM Int. RAISES EU248M From 5% Stake Sale in ASMPT
- ATO FP : Atos Lifts Outlook for 2017 Revenue Growth, Operating Margin
- AIXA GY : Aixtron Sees FY Rev. EU180m-EU210m
- BKG LN : Unsold London Homes Under Construction Hit Record as Sales Fall
- CO FP : Casino Cut to Junk by Fitch, Citing Weaker Growth at Core Market
- ACA FP : Credit Agricole May Buy Italy’s Caricesena, Carim, Carismi
- DEC FP : JCDecaux to Appeal Paris Contract Decision at Council of State
- CDI FP : LVMH to Buy Christian Dior Couture; Arnault Christian Dior Bid
- EI FP : Essilor 1Q Rev. EU1.96b
- ERICB SS : Ericsson 1Q Net Sales Miss Est.
- FRE GY : Fresenius Said Near Deal to Buy Akorn, Reuters Says
- LONN VX : Lonza Raises 2017 Sale Growth Target, Sees Stronger Core Ebit
- LONN VX : Lonza to Replace Actelion in Swiss SMI Index From May 3
- METSO FH : Metso Raises Outlook for Mining Services; Net Sales Beat Ests.
- NOVN VX : Novartis 1Q Core EPS Cont. Ops. Beats Est.
- NN NA : NN Group Holder FNO Offering ~8.75m Shares via Bookbuild
- UG FP : Paris Prosecutor Starts Probe Into Peugeot Diesel Engines
- PHIA NA : Philips Doesn’t See Itself as Takeover Target, CEO Tells FAZ
- SCHP VX : Schindler’s 1Q Results Solid, Modest Consensus Upgrades Seen: MS
- STL NO : Statoil EVP Dodson: Expects at Least 1 Find in Barents This Year
- TEF SM : Telefonica Said to Weigh IPO for U.K.’s O2 as Soon as Year End
- UMI BB : Umicore FY Adj. Ebit View Midpoint Trails Est.
- VIV FP : Vivendi Seen Accelerating Expansion in Video Games, Ads: Reuters
- VOLVB SS : Volvo 1Q Adj. Operating Profit Beats Highest Est.
- WFM US : Albertsons Said Exploring Bid for Grocer Whole Foods: FT
- WTB LN : Whitbread FY Underlying Pretax Beats Ests.