>>> Asian Update

Asia Mid-Session Market Update: Trump rally skids off track as Health Care bill faces stiff opposition ahead of Thursday House vote

***US Session Highlights***
- (US) Mar Philadelphia Fed Non-Manufacturing General Business Conditions: 35.4 v 29.3 prior
- (US) Fed's Dudley (dove, FOMC voter): rules must make sure risk of big bank failure is really low - Q&A with reporters
- (US) President Trump: asked whether he can get health care bill votes, "I think so"
- (US) Rep Peter King (R-NY): does not know if health care bill has the votes to pass the House
- (US) House Speaker Ryan (R-WI): a lot of Freedom Caucus members are supporting Trump healthcare bill
- (US) 25 Freedom Caucus members are now 'hard no's' on the healthcare bill (GOP can only lose 21 Republican votes and still get the bill passed); unless the bill is dramatically changed by Wed night, the Freedom Caucus may issue a formal statement of opposition and House leaders may have to consider delaying the vote that is scheduled for Thursday - CNBC's Harwood

***US markets on close: Dow -1.1%, S&P500 -1.2%, Nasdaq -1.8%***
- Best Sector in S&P500: Utilities
- Worst Sector in S&P500: Financials
- Biggest gainers: CMG +2.8%, DUK +1.9%, PPL +1.8%, D +1.8%, XEL +1.8%
- Biggest losers: KEY -6.5%, HBAN -6.1%, CMA -6.1%, BAC -5.8%, TDG -5.5%
- At the close: VIX 12.5 (+1.1 pts); Treasuries: 2-yr 1.26% (-4bps), 10-yr 2.44% (-4bps), 30-yr 3.05% (-4bps)

***US movers afterhours***
- DLTH: Reports Q4 $0.43 (adj) v $0.33e, R$174.7M v $163Me; Guides initial FY17 GAAP EPS $0.66-0.71, net sales $455-465M v $445Me, Adj EBITDA $47-49.5M v $41.2M y/y; +20.7% afterhours
- ACHN: USPTO grants composition of matter patent for small molecule complement alternative pathway Factor D inhibitors; +3.9% afterhours
- SLW: Reports Q4 $0.19 v $0.17e, R$258M v $253Me; raises dividend 16.7% to $0.07 (implied yield 1.05%); +3.4% afterhours
- FDX: Reports Q3 $2.35 v $2.63e, R$15.0B v $15.0Be; Cuts FY17 capex (incl TNT Express) $5.3B (prior $5.6B); CEO: expect an excellent Q4; +2.1% afterhours
- NKE: Reports Q3 $0.68 v $0.52e, R$8.43B v $8.45Be; Q3 Worldwide Futures orders -1% v +3.4%e; -3.7% afterhours

***Politics***
- (US) Pres Trump: Thursday's vote on healthcare legislation is crucial for Republican party - press
- (US) US Chamber of Commerce: supports Republican healthcare bill - letter to lawmakers
- (US) White House: Pres Trump plans to attend the NATO summit on May 25th - press

***Asia Key economic data:***
- (JP) JAPAN FEB TRADE BALANCE: ¥813B (10-month high) V ¥807BE; ADJ TRADE BALANCE: ¥680B (7-year high) V ¥551BE
- (AU) AUSTRALIA FEB WESTPAC LEADING INDEX M/M: -0.1% V 0.0% PRIOR
- (AU) AUSTRALIA FEB SKILLED VACANCIES M/M: 0.1% V 0.6% PRIOR

***Asia Session Notable Observations, Speakers and Press***
- Asian equity markets are down significantly, tracking the biggest loss of the year on Wall St where political risk has become increasingly amplified. US indices closed near the lows on late US session report that 25 members of Congressional Republican "Freedom Caucus" are united with a "hard no" position on Trump/Ryan version of Obamacare repeal/replace, which in turn puts into question the viability of White House plans for fiscal stimulus and tax reform. President Trump is making last ditch efforts to negotiate a deal, but also warned that dissenters risk losing their Congressional seats in the midterms. Treasuries were bid higher across the curve and low-beta Utilities rallied, while Financials and Materials took the most direct hit.
- Nikkei225 is the worst performing index in Asia, with added headwinds from overall decline in USD boosting JPY, as Financials is also the worst segment in Japan. Australia is also underperforming as miners slump on lower iron ore prices. In FX, USD/JPY fell below 111.50 for the first time since last November, and AUD's decline to 0.7650 was a 1-week low. NZD/USD was rangebound ahead of tomorrow's RBNZ decision after a brief rally in US hours on increasing dairy auction prices.
- Economic data centered around Japan, where Feb Trade Balance recovered from last month's multi-month lows. Exports spiked to a 2-year high 11.3% v 10.1%e, as shipments to Asia and China grew over 20% and US exports recovered from last month's loss with a flat print. BOJ Minutes from Jan meeting maintained view that economy is in moderate recovery trend, though most members agreed price momentum is not yet firm and inflation expectations remain in weakening phase. Recall that meeting preceded the latest BOJ statement when the medium-term outlook for inflation was improved.

China
- (CN) Chinese press op-ed speculates economy may face more downward pressure in H2; Govt should increase efforts to stabilize growth
- (CN) According to a PBoC survey in Q1, 52% of China urban households believe housing prices are "unacceptably high" - Chinese press

Japan
- (JP) BOJ Member Funo: Vintal for BOJ to continue with powerful easing; Must be mindful of downside risks to price outlook; Price momentum is still insufficient
- (JP) According to Recruit Jobs, average part time wages in Japan's Tokyo, Nagoya and Osaka metropolitan areas rose 2.3% y/y amid tighter labor market - Nikkei
- (JP) Japan Finance Ministry said to seek larger JGB bids from primary dealers in effort to avoid risk of undersubscription - Nikkei

Australia/New Zealand
- (AU) Australia Trade Min Ciobo: Relationship with China is very strong
- (NZ) Westpac: RBNZ statement tone tomorrow may be balanced and policy outlook expected to remain unchanged, leaving markets "roughly unmoved" - press
- (NZ) ANZ economist: Prices for New Zealand commodities are holding up better than expected, as highlighted by positive dairy auction overnight - NZ press

Korea
- (KR) North Korea may have launched several missiles today; South Korea military says the launches were not successful - Japan press

***Asian Equity Indices/Futures (00:30ET)***
- Nikkei -2.0%, Hang Seng -1.4%, Shanghai Composite -0.7%, ASX200 -1.6%, Kospi -0.6%
- Equity Futures: S&P500 -0.3%; Nasdaq -0.2%; Dax -0.2%; FTSE100 -0.2%

***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.0790-1.0820; JPY 111.45-111.80; AUD 0.7650-0.7690; NZD 0.7015-0.7045
- Apr Gold -0.1% at $1,245/oz; May Crude Oil -0.2% at $48.13/brl; May Copper -0.3% at $2.60/lb
- (US) Weekly API Oil Inventories: Crude: +4.5M v -0.5M prior (7th build in the past 9 weeks)
- SPDR Gold Trust ETF daily holdings rise 4.1 tonnes to 834.4 tonnes; First rise since Mar 15th
- (CN) PBOC SETS YUAN MID POINT AT 6.8889 V 6.9071 PRIOR; first stronger setting in 4 sessions
- (CN) PBOC to inject combined CNY90B v CNY80B prior in 7,14, and 28-day reverse repos
- (CN) China MoF sells 3-yr upsized bonds; avg yield 3.0289% v 2.91%e; bid-to-cover ratio 1.69x
- (JP) Japan MoF sells ¥500B in 0.4% 40-year JGB bonds, bid to cover: 2.95x v 2.99x prior
- (AU) Australia MoF (AOFM) sells A$800M in 2.25% 2028 Bonds; avg yield: 2.8595%; bid-to-cover: 2.19x-
- (KR) South Korea sells KRW300B in 50-yr govt bonds at 2.225%

***Asia equities / Notables / movers by sector***
- Consumer staples: 168.HK Tsingtao Brewery Co -3.4% (profit warning); FCG.NZ Fonterra -0.5% (H1 result)
- Financials: 1628.HK Yuzhou Properties -1.5% (FY16 result); 81.HK China Overseas Grand Oceans Group -3.4% (FY16 result); 7164.JP Zenkoku Hosho Co +7.6% (raises guidance); PMV.AU Premier Investments +4.6% (Deutsche Bank raises rating)
- Industrials: 1038.HK Cheung Kong Infrastructure -1.2% (FY16 result); NUF.AU Nufarm +3.1% (H1 result)
- Technology: 1070.HK TCL Multimedia Technology Holdings -0.8% (FY16 result)
- Materials: FMG.AU Fortescue -5.3%, BHP.AU BHP Billiton -2.6%, RIO.AU Rio Tinto -2.5% (iron ore declines); EVN.AU Evolution Mining +0.9%, SBM.AU St Barbara +2.6%, NCM.AU Newcrest Mining +2.0% (gold price rises)
- Energy: 6.HK Power Assets Holdings -1.4% (FY16 result); 2688.HK ENN Energy Holdings -1.9% (FY16 result)
- Telecom: TPM.AU TPG Telecom -2.3% (Credit Suisse cuts rating)
- Utilities: 902.HK Huaneng Power International -6.1% (FY16 result)

>>> After Hours Summary: DLTH +19% and FDX +2% following earnings/g


After Hours Summary: DLTH +19% and FDX +2% following earnings/guidance, BEBE +9% rebounding... NKE -3.8% following earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: DLTH +19.4%, VKTX +5.6% (thinly traded, ticking higher), HQY +3.1%, SLW +2.6%, FDX +1.6%

Companies trading higher in after hours in reaction to news: BEBE +9% (modestly rebounding), IDXG +6.1% (after closing near highs), ACHN +3.4% (announces that the U.S. Patent and Trademark Office has issued the first U.S. patent to Achillion resulting from its complement factor D research program), SNAP +1.2% (initiated with a Buy at Drexel Hamilton; $30 tgt)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: NKE -3.8%

Companies trading lower in after hours in reaction to news: RGNX -6.1% (to offer and sell $75,000,000 of its common stock in an underwritten public offering), ADAP -5.6% (thinly traded -  to offer and sell ADSs in underwritten public offering), DEA -3.7% (light volume; to acquire and complete the development of the Department of Veterans Affairs Outpatient Clinic; raises FY 17 FFO/share guidance; commences a public offering of 4.3 mln shares of common stock in connection with the forward sales agreements)

>>> US Close Dow -1.14% S&P -1.24% Nasdaq -1.83% Russell -2.71%

Closing Market Summary: Financials Pace Stock Market's Tuesday Tumble

Investors attempted to make the most out of some positive overnight developments on Tuesday morning, but a modest gain at the opening bell was the straw that broke the back of a stock market that may have extended itself a little too far. The major averages finished their worst day of 2017 solidly lower with the Nasdaq (-1.8%) leading the retreat. The S&P 500 settled lower by 1.2%, marking the first time since October that the index closed with a loss of more than 1.0%. That streak is the longest since 1995.

The financial sector (-2.9%), the poster child of the stock market's post-election rally, tumbled deep into negative territory on Tuesday, signaling the possible end of the new administration's honeymoon phase. The reversal of fortune had its roots in the inverse relationship between the yield curve and the banks. The former is flattening in a contradiction of the pro-growth narrative that has driven the stock market to record highs in the post-election period; meanwhile, the banks are getting flattened as investors re-think the high earnings expectations related to a widening yield spread that have driven many bank stocks sharply higher since the election.

As they have since the presidential election on November 8, most sectors followed the financial group's lead to finish the day solidly lower. The cyclical sectors absorbed the worst of the selling pressure with the consumer discretionary, industrials, materials, and technology sectors closing lower between 1.2% and 1.7%.

Countercyclical groups outperformed amid the day's risk-off sentiment with the rate-sensitive utilities sector (+1.4%) closing atop the day's leaderboard. The sector profited from the increased buying interest in the Treasury market, which left yields lower across the board; the benchmark 10-yr yield finished Tuesday's session three basis points lower at 2.43%.

Like its defensive peers, the health care sector (-0.8%) also outperformed the broader market, but it showed relative weakness within the countercyclical space as the debate on health care reform picked up steam in Washington. The GOP's proposed health care legislation will go the the floor of the House on Thursday, but reports indicate that the Republicans will not have enough votes to move the bill to the Senate.

Investors will keep their fingers crossed, hoping that a resolution can be worked out in the nation's capital so that lawmakers can move on to tax reform--another promise that has propped up the stock market.

Tuesday's lone economic report was fourth quarter Current Account Balance:

  • The current account deficit for the four quarter totaled $112.4 billion while the consensus expected the deficit to hit $128.2 billion. The third quarter deficit was revised to $116.0 billion from $113.0 billion.

>>> Europe Pre Market

MS:

BRSN LN
-2%
BERENSDEN CUT TO UNDERWEIGHT AT BARCLAYS,PT 700P
BWY LN
UNCH
BELLWAY 1H REV GBP 1.15B,MARGIN EXPECTED MAINTAINED AT 22%
CFR VX
-1-2%
EXPORTS WORSEN -10% IN FEB VS JAN -6%; US IN PARTICULAR SEES A BIG FALL; HK REVERTS SOMEWHAT.
DWNI GY
-1.5%
DEUTSCHE WOHNEN CONFIRED PRELIM ANNOUNCED NUMBERS AND DIV / GUIDANCE A TOUCH WEAKER
FPE3 GY
+1%
FUCHS PETRO CONFIRMED FINAL FY16 NUMBERSAND OUTLOOK
UHR VX
-1-2%
EXPORTS WORSEN -10% IN FEB VS JAN -6%; US IN PARTICULAR SEES A BIG FALL; HK REVERTS SOMEWHAT.
VEC LN
+2-3%
VECTURA PRELIMINARY EBITDA GROWTH OF 47% TO £34.1M,SAYS IT LOOKS FORWARD TO 2017 WITH CONFIDENCE


Investec:
EU
* AKZO- PPG said to prepare new offer........................................+2%
* BMW-annual press conf today, detailed FY16 results & 2017 o/look.
* D WOHNEN-FY in line w/guidance, broker d/grade away........................-2%
* ERICSSON-Chair never had Cisco talks(CNBC).Had been mkt bid spec recently..-1%
* FUCHS-FY revs in line,ebit and div ahead,guidance in line/slightly ahead...+1%
* L’OREAL-Body Shop bids said <€700m vs €1bn sought by L’Oreal(Rtrs).........-1%
* NORDEA, DANSKE-liknked to money laundering(Berlingske). Looks old story....U/C
* PARTNERS GRP-FY16 beat across board, div raised to Chf15 from Chf10.5....+0.5%
* PORSCHE-FY16 results due.
* PUBLICIS-Honda said to drop Publicis unit after trust breakdown(WSJ).......-2%
* SANOFI-China Head sees continued dbl digit gth this yr(WSJ)................U/C
* TIT-Vivendi(+0.5%) said weigh plan to oust C/man, transfer power to CEO....+1%
* UNIPER-in tlks with unions over salary, benefit cuts(WAZ)..................U/C

UK
* 888-FY.EBITDA 3.4% ahead of cons.(Sport strong)$0.105 special div.........+3%
* CLS HDGS-Acquires Network Perlach property (Munich) for €15.3m...........unch
* BELLWAY-H1.#'s & div in line. Order book ahead of last yr.Trav&Arriv......-1%
* ENQUEST- Kraken under budget & on time. confirms guidance...............+1-2%
* FAROE PETROLEUM-Production ahead rest looks inline........................+2%
* FEVERTREE-FY.In line(no u/g's)Charles Rolls taking back seat(-4% yday)..-2-3%
* GAMMA COMMS-FY.EPS 5% ahead. U/G FY17 & 18 fcast.........................+3%
* GOOD ENERGY- deal with DONG & resilient results.........................+2-3%
* HUNTSWORTH-FY.EPS ahead and restructuring complete.U/G FY 17&18 EPS.......+1%
* MEARS-FY.#'s a miss. FY17 to be lower end of guidance.D/G FY17&18.........-5%
* MEDICA-IPO(MGP LN) priced at 135p. Opening Ind. 165-70p..................+20%
* NAHL GRP-FY.~'s in line.Reaffirms its new strategy after MoJ proposals....+1%
* SCS GROUP-H1. #'s ahead current trading a little weaker but FY unch......unch


RBC:
*888: +2% FY pretax profit +82%, rev +18%, plans additional one-off dividend.
*AKZO NOBEL: +2% PPG said to be actively working on revised takeover bid.
*BELLWAY: +1% H1 profits +10%, raise interim dividend.
*BNP/AXA: +1% Macron perceived as victor in French Presidential debate.
*ENQUEST: +1% FY'16 broadly in line, KRAKEN on track, FY'17 guidance reiterated.
*FAROE PET: +1% finances in line, FY'17 positive & increased lower end prod guidance.
*FEVERTREE: +2% FY'16 results 2.5% beat, outlook reassuring, encouraging start to '17.
*FINGERPRINT: -10% expects weaker Q1, profit & rev warning, withdraws div proposal.
*IMB: +2% SKY: considering taking stake in P&H with JAPAN TOBACCO (+2.23%)
*L'OREAL: +2% REUTERS: suggests private equity interested in THE BODY SHOP.
*SINCLAIR: 0% Q1'17 trading in line with pre-announced.
*UHR/CFR: -2% weaker Swiss Watch exports, -10% in February v -6.2% in January.
*VECTURA: +2% FY'16 decent rev growth, strong into numbers, confident of outlook.

ML:
PARTNERS GR - EPS c11% above our ests on good cost control/lower tax (546)+2-3%
888 - Statement reads very well with revs 2% beat, EBITDA 3% ahead (240)..+2-3%
ENQUEST - Inline with prodn averaged 39.7kbd, with revs of US$850mn (41.5)..u/c
GRAND CITY - Inline. Rental income up 31% YoY, LTV at 35% v 42% in FY16 (17)u/c
BELLWAY - Interims confirm growth. Did pre-announce so no surprises (2828)..u/c
FEVERTREE - Inline with FY revs +73%,says confident of further growth (1462)u/c
LVMH - Takes majority stake in Maison Francis Kurkdjian,perfumes brand (200)u/c
SWATCH - Weak Swiss export data for Feb,adj for FX & days -4.3% in Dec (342)-1%
PUBLICIS - Honda said to drop ad unit after trust breakdown; WSJ report (62)-1%
MINERS - Copper -1.1%, Iron Ore fut -2.2% with BHP OZ -0.96%, RIO OZ -1.27%.-1%
RICHEMONT - Weak Swiss export data for Feb, adj for FX & days -4.3% (76.77).-1%
D.WOHNEN - Inline with NAV €29.68 v ~€30 cons and LTV flat at 38% (31.3)....-2%
FINGERPRINT - Warning.Sees rev decline of >50%,withdraws div.SI 18% (42)-15-20%


Citi:
UK
* Bellway - H1 revs/pretax beat,sees fy op margin maintained at 22% unch
* Enquest - fy revs beat,ebitda light,confirms 2017 output guidance +1%
* Vectura - annual savings of £10m by 2018,looks forward with confidence +1%
* 888 - fy revs beat,op profit/eps miss,current trading healthy +1%

EU
* Akzo - PPG said to ready new offer after failed $22.4bn bid +4%
* Partners - fy revs beat,ebitda margin above target,confirms fy demand +2%
* L'Oreal - Body Shop sale may fetch <€700m vs €1bn sought by co -1%
* Deut Wohnen - fy adj ebitda miss,+ve mkt development led to revaluation unch
* SGL - fy sales in line,ebit beat,sees ebit rising > than sales +2%
* Fuchs Petro - sees 2017 1-5% ebit growth/4-6% sales growth +1%
* Swatch - Swiss watch exports -10% in Feb yoy,in line with cons unch
* Subsea 7 - awarded $300-500m contract by BP offshore Gulf of Mexico unch


CS:
888 +2-3% Revs $520m vs cons $508m, special div announced
Akzo Nobel +1% PPG Said to Prepare New Akzo Bid
BASF M/P BASF SE is considering making a bid for Bayer
Bayer R BASF SE is considering making a bid for Bayer
Bellway +1-2% 1H operating inline, FY guidance better
Deut Wohnen -1% FY16 numbers broadly inline with guidance
Fevertree UNCH FY revs inline, adj EBITDA small ahead, divi better
Fuchs +0.5% FY numbers inline, FY17 guidance solid
Grand City +1% NAV €16.4 vs CS ests €16.94, Payout ratio up to 65%
Hastings +1% CS INITIATE with OUTPERFORM (Debt+Capex reductions)
Komax M/P Adj EBIT slightly ahead of CS, divi slightly light
Mears M/P Revs slightly light £940m vs cons £957m, divi ahead
Miners -1-2% Copper -1.40%, Brent +0.20%, Iron Ore -1.70%, China +0.20%
Partners +2-3% FY revs CHF973m vs cons CHF909m, EBITDA 8% ahead
Publicis -1% Honda US unit said to have dropped Publicis ad-buying unit
Richemont -1-2% Swiss watch export data -10% y/y for the month of Feb
Subsea +2% contract from BP as part of deepwater Mad Dog 2 development
Swatch -1-2% Swiss watch export data -10% y/y for the month of Feb


Mainfirst:
*SANOFI-Sees drug sales in China to rise at least 10% in yr-WSJ......+0.5%
*FUCHS-Sees further OG for '17,Sales +4-6%(4%),Ebit +1-5%(2%)........+0.25%
*PARTNERS-FY Rev 973m(909),Ebitda 601m(548),NP 558m(508),Div 15......+1%
*D/WOHNEN-FY16 FFO known,FY17 Ebitda 527.4m(552.6),FFO 425m(443).....-2%
*LVMH-To acquire niche perfume label Maison Francis Kurkdjian........U/C
*KONE-Wins order for twin tower complex in Jakarta,no fins...........+1%
*PUBLICIS-Honda drops Ad unit after trust breakdown says WSJ.........-2%
*SGL-FY16 Rev 769.8m(763),Ebit 23.7m(14.05),FCF -48.1m(-71)..........+1.5%
*VINCI-CEO says would prefer not being involved in Trump wall........U/C
*AKZO-PPG said to prepare renewed takover offer,talk of €95(83)......+1%
*SWATCH/Richemont-Swiss watch exports -10% YoY tough comp -2.3%......-1%


ShoreCap:
BELLWAY - revs +5.9% £1.15bn,profit +8.9% £296.7,fwd order book +18%........+2%
VECTURA - revs +75.7% £126.5m,sees strong LfL rev growth in 2017............+2%
FEVERTREE - rev +73%, margin 55.2%,EBITDA +97%,encouraging start to 2017....+1%
SAFECHARGE - Revs 101.5m.Pft after tax 26.6m.Divi 16.47c.Good start to 2017.+3%
888 - Fy op pft 60.6m.Ytd trading avg daily rev over 11% above prior year...+2%
WYNNSTAY - On track to return to growth in current fibal year..............UNCH
JUDGES - Fy revs 57.3m.Op pft 7.1m.Divi 18.5p.Mixed statement...............-2%
ACCESSO-Fy rev $102.5m.Op pft 15.7m.Confident statement....................UNCH
FAROE PET - Fy loss £33m (expl write-offs&imp'ment),'17 prod 13k-15k boepd.UNCH
SCS - sales +14.1%,profit +12.4%,slow Feb/improved March,in line...........UNCH
SINCLAIR PHARMA - sales +51%,profit +56%,EBITDA losses narrow,in line.......+1%
HUNTSWORTH - rev +7%,op.loss narrows,divi maintained,positive outlook.......+2%
EARTHPORT - revs +34.9%,profit +33.8%,transactions +85%,EBITDA loss grew....+2%


Winterflood:
******* Small Cap / AIM *******
* 888 HOLDINGS (888) +3%; Rev +13% to $520.8m. EBITDA +12% to $90.2m. Recommending final div of 5.1c, and an additional one-off 10.5c. Trading since start of the year has been in line.
* AUDIOBOOM (BOOM) unch; Placing at 2.5p to raise £4m.
* AUGEAN (AUG) unch; Trading in line with expectations. Dividend increase. Encouraging start to the year. Had small bounce in front of the figs.
* BERKELEY ENERGIA (BKY) +2%; EU Approval of Salamanca offtake contract.
* BRIGHTON PIER (PIER) +5%; Half Year. In line with management expectations.
* EARTHPORT (EPO) unch; Solid set of results, cash burn a slight concern however the board believe they will be cash flow breakeven by Q4 2017.
* ENQUEST (ENQ) +2%; Rev $849.6m vs $906.6m. PBT $237.1m vs $173.9m. Net debt $1,796m vs $1,548m. Cash capex $609.2m, down 19% y/y. 2017 production averaging 45k-51k boe/d, matching January guidance. Reiterates Kraken on schedule for 1st oil in 2Q.
* FAROE PETROLEUM (FPM) +2%; Finals, nothing new, reminder that the company is well funded with exciting drill programme continuing throughout the summer.
* FLOWGROUP (FLOW) +5%; Indicative offer received for energy business. No figures mentioned but had been expected to be at a premium to share price.
* GAMMA COMS (GAMA) +1%; Finals, in line with forecast and optimistic about growth.
* GOAL SOCCER CENTRES (GOAL) +5%; Final figs. Return to like for like sales and profit before tax. 2 new centres in US and overhaul of UK operation.
* GOOD ENERGY (GOOD) +2%; Robust finals, deal with DONG Energy to source offshore wind power.
* HUNTERS PROPERTY (HUNT) unch; Placing @ 55p to fund acquisition accompanied with a positive update.
* HUNTSWORTH (HNT) +2-3%; Prelims in Line. Loss due to restructuring costs and goodwill writedown. U/lying business performing well (Grayling aside). Outlook robust and $ strength a +VE. Undermanding mkt cap should attract buyers.
* JKX OIL & GAS (JKX) -10%; High Court Claim by Ukraine - Another blow for JKX as Ukraine MoJ makes application to overturn recent arbitration award.
* JUDGES GROUP (JDG) -3%; Prelims back up previously flagged mixed year. Company remains solid and div up 10% so share price reaction should be tepid.
* MEARS (MER) -1%; Finals - Looks like small miss on BBG estimates. +VE rhetoric and divi hike could mitigate.
* MIND & MACHINES (MMX) unch; +VE tone to a business update, but lacking in any real hard numbers.
* PREMIER AFRICA MIN (PREM) +10%; Positive assay results, Zulu deposit.
* RAINBOW RARE EARTH (RBW) +3%; Update. Activity commenced at Gakara project. First sales to commence by year end 17.
* SAFECHARGE (SCH) +2%; Good start to yr, strong sales, all seems to be going well, continued increase in dividend.
* SCS (SCS) -3-5%; Interims. REV £165.9m vs £145.4m, loss before tax £2.6m vs £3.4m, net cash £36.8m vs £32.2m. Interim div 4.9p vs 4.67p. Feb trading was challenging, however, seen an improvement in March. Strong comps for Easter but currently expects FY results to be inline with expectations. Lets hope the update after Easter period is more +VE.
* SINCLAIR PHARMMA (SPH) -2%; FY results. REV £37.8m v £25m. Op loss £6m v £13m. Net cash £16.8m. Trading for last year was in line with management expectations and they expect progress this year and returns for shareholders.
* SMART METERING (SMS) +2%; FY results. Rev £67.2m v £53.9m. PBT £18.2m v £17.5m. Div 4.1p v 2.2p. 2016 was a transformational year for the business and leaves it in a strong financial position. Business has had strong start to 2017 and is well positioned for the future.
* UBISENSE (UBI) +5%; Improved numbers. Reduced costs and loss and increased revenue and margin.
* VERSARIEN (VRS) +5%; 85% owned Cambridge Graphene already producing graphene for customers in samples quantities.
* XLMEDIA (XLM) +3%; Preferred partner status with Instagram.

>>> What to look at today - 21st of March 2017

Dow -0.04% S&P -0.20% Nasdaq +0.01% Russell -0.53%
US market closed lower. News flow was generally light on Monday with statements from three FOMC voters acting as the top headline. In summary, Chicago Fed President Evans could not rule out four rate hikes in 2017, Philadelphia Fed President Harker believes that the Fed will mildly overshoot the 2.0% inflation target, and Minneapolis Fed President Kashkari stated that he would like to shift the focus to reducing the Fed's balance sheet. CAT +2.47% after strong machine retail sales for February. AAPL+1%, PHLX +0.8%, the materials (+0.4%), consumer staples (+0.1%), and real estate groups (+0.1%) finished in the green. Utilities -0.7%, Energy -0.1%. US After Hours Christopher & Banks (CBK) up on insider buy, Calithera Biosciences (CALA) down on stock offering. Asian equity markets traded mixed and mostly in narrow ranges, tracking another flattish day on Wall St. Bullish sentiment has been tempered by uncertainty regarding Pres Trump's pro-business tax agenda as the cabinet continues to wrestle with Congressional inquiry into Russia election ties as well as negotiation on Obamacare repeal legislation that needs to get passed before tax reform can begin. Modest safehaven bid of US Treasuries continued on Monday as yield curve flattened and financials struggled. In Asian hours, futures are pointing to more optimism attributed to initial response from Elabe poll in France that showed Macron as the most credible candidate in today's debate, potentially defusing concerns of a populist revolt propelling Le Pen to a surprise victory in May. EUR/USD bounced on the poll release, rising some 50pips to 1.0770, while USD/JPY reversed some of the early pressure to rise over 40pips above 112.70.

Nikkei -0.34$ Hang Seng +0.34% CSI +0.13% Shanghai +0.02%

Eur$ 1.0768 CNH 6.8887 CNY 6.8990 JPY 112.74 GBP 1.2357 CHF 0.9977 RUB 57.3684 WTI$ 49.09 +0.37%

S&P +0.17% EuroStoxx +0.03% Dax +0.07% FTSE -0.02% SMI +0.12%

Macro :
- Paris Accord Could Make the World $19 Trillion Richer
- U.S. Gasoline Demand to Drop More Than 1.7M B/D by 2030: WoodMac

Keep an eye on :
- AKZA NA : PPG Could Offer Up to EU95/Share for Akzo Nobel: United First
- ATC NA : Altice Buys Ad Service Teads in Deal Valued at Up to EU285m
- BGN IM : Banca Generali Names Gian Maria Mossa CEO
- DWNI GY : Deutsche Wohnen FY Adj. Ebitda EU527.4m, Proposes EU0.74 Div.
- EDF FP : French Union Calls for Strike at Electricite de France Tuesday
- IMB LN : Imperial, Japan Tobacco May Take Stakes in Wholesaler P&H: Sky
- KOMN SW : Komax FY Adj. Ebit CHF57m; Increase Dividend; Sees 2017 in Line
- MUV2 GY : Munich Re Downgraded as Upside Potential Limited, Bernstein Says
- OR FP : Body Shop Bid Deadline Said to Be Mid-April, Reuters Says
- PUB FP : Honda Said to Drop Publicis Ad Unit After Trust Breakdown: WSJ
- SAN FP : Sanofi Sees Drug Sales in China Rising 10% or More This Year:WSJ
- SGL GY : SGL Sees Mid Single Digit Percentage Increase for 2017 Sales
- SOLB BB : Solvay Starts Dental-Care Business for Partial Denture Frames
- TMG NA : Talpa Buys 37,253 Telegraaf Shares for Average EU6.50 Apiece
- TNET BB : Telenet’s BASE Doubles Data Allowance in Mobile Plan Promotion
- TESB BB : Picanol Unit Buys Additional EU0.29m of Tessenderlo Chemie Stock
- UNA NA : Unilever Sees Investor Support for Kraft Rejection: De Telegraaf

>>> Europe : Brokers Upgrades & Downgrades - 21st of March 2017

>>> Up
*Bunzl Raised to Overweight at Barclays
*Lufthansa Raised to Add at AlphaValue
*SAP Raised to Add at AlphaValue
*Swiss Re Raised to Outperform at MedioBanca, PT CHF103.50
*Valeo Raised to Hold vs Underperform at Jefferies

>>> Down
*Berendsen Cut to Underweight at Barclays, PT GBP7
*Bourbon Cut to Sell at AlphaValue
*Campbell Cut to Underperform at Bernstein, PT $54
*Conagra Cut to Underperform at Bernstein, PT $36
*Esure Cut to Neutral at Citi, PT 235p
*Generali Cut to Hold at Equita SIM, PT EU16
*General Mills Cut to Underperform at Bernstein, PT $52
*J.M. Smucker Cut to Underperform at Bernstein, PT $130
*Kellogg Cut to Underperform at Bernstein, PT $69
*Munich Re Cut to Underperform at MedioBanca, PT EU180
*Munich Re Cut to Market Perform at Bernstein, PT EU185
*UCB Cut to Underperform at Jefferies, PT EU60


>>> Initiation
*Clorox Rated New Neutral at JPMorgan, PT $136
*Coca-Cola Rated New Neutral at JPMorgan, PT $43
*Colgate Rated New Neutral at JPMorgan, PT $77
*Constellation Brands Rated New Overweight at JPMorgan, PT $183
*Coty Rated New Underweight at JPMorgan, PT $16
*Estee Lauder Rated New Overweight at JPMorgan, PT $100
*Hastings Rated New Outperform at Credit Suisse, PT 290p
*Haynes Rated New Neutral at Longbow
*Hunting Rated New Buy at Numis, PT 816p
*Kimberly-Clark Rated New Neutral at JPMorgan, PT $139
*Melrose Industries Reinstated Overweight at Barclays
*Molson Coors Rated New Neutral at JPMorgan, PT $105
*Monster Beverage Rated New Overweight at JPMorgan, PT $56
*P&G Rated New Neutral at JPMorgan, PT $98
*PepsiCo Rated New Overweight at JPMorgan, PT $125
*Vestas Rated New Buy at DNB Markets, PT DKK630

>>> Call
>> Stock
*SCHAEFFLER ADDED TO ALPHA LIST AT BANKHAUS LAMPE
*WIRECARD ADDED TO ALPHA LIST AT BANKHAUS LAMPE