TheChek News Flow

Asia Mid-Session Market Update: US Commerce Sec Pritzker warns incoming administration that China will retaliate to any new tariffs; S&P/ASX200 at 6-week

***US Session Highlights***

- Reportedly OPEC technical experts recommend production cut between 4.0-4.5% for each member (except Libya and Nigeria) - financial press

- OPEC committee said to defer decision on Iran/Iraq production cuts until Nov 30th meeting - press

- OPEC source: high-level technical committee has finished its work 'successfully' - press

- (US) Nov Philly Fed Non-Manufacturing Index: 10.6 v 21.3 prior

- (US) NOV RICHMOND FED MANUFACTURING INDEX: 4 V 0E; new orders jump

- (US) OCT EXISTING HOME SALES: 5.60M V 5.44ME (highest pace since Feb 2007, pre-crisis)

- (US) Reportedly Pres-elect Trump plans to fill the 2 vacant Fed board seats within the first 3 months of the Administration - press

***US markets on close: Dow +0.4%, S&P500 +0.2%, Nasdaq +0.3%***

- Best Sector in S&P500: Basic Materials

- Worst Sector in S&P500: Healthcare

- Biggest gainers: DLTR +8.2%, VFC +5.0%, URBN +5.0%, ADI +4.4%, NUE +4.4%

- Biggest losers: PDCO -16.7%, MDT -8.7%, MOS -5.8%, NRG -5.3%, ENDP -5.0%

- At the close: VIX 12.4 (flat); Treasuries: 2-yr 1.10% (+1bp), 10-yr 2.32% (-2bp), 30-yr 3.01% (flat)

***US movers afterhours***

- VEEV: Reports Q3 $0.22 adj v $0.16e, R$143M v $136Me; +5.9% afterhours

- GME: Reports Q3 $0.49 v $0.47e, R$1.96B v $1.97Be; +2.5% afterhours

- HPE: Reports Q4 $0.61 v $0.61e, R$12.5B v $12.9Be; -1.8% afterhours

- HPQ: Reports Q4 $0.36 v $0.36e, R$12.5B v $11.9Be; -2.3% afterhours

- URBN: Reports Q3 $0.40 v $0.44e, R$862M v $873Me; -10.0% afterhours

***Politics***

- (US) Mitt Romney now seen as the leading candidate for Secretary of State under President Trump - press

- (US) Former House Rep Harold Ford (D-CA) considered by Donald Trump for Transportation Sec or another post - Politico

***Asia Session Notable Observations, Speakers and Press***

- Crude oil prices retreat despite the draw in API inventories.

- S&P/ASX200 hits 6-week highs above 5,470; Mining shares rally on iron ore spike.

- Dollar majors in narrow ranges; AUD/USD outperforms following upbeat comments overnight from RBA's Kent and patience from S&P analyst on AAA rating going into Australia's MYEFO budget release.

- Offshore Yuan falls to new all-time lows through CNH6.92 despite stronger fix

- Japan closed for holiday

China:

- US Commerce Sec Pritzer: China has warned of a retaliation if US levies tariffs as threatened by Pres-elect Trump; Abandoning TPP gives China an advantage; Will hurt US interests in Asia and globally.

- (CN) China big 5 banks to establish debt-to-equity divisions; Each to invest CNY10B - Caixin

Australia:

- Australia Q3 construction falls at fastest pace in 16 years; Residential segment -3.1% q/q v +9.4% prior, non-residential -10.9% v +0.4% prior

- (AU) UBS: Australia Q3 GDP may be flat due to falling construction activity - press

- (AU) S&P Global Ratings director Craig Michaels suggesting S&P may stay patient in its AAA rating of Australia after the upcoming MYEFO report - AFR

- (AU) Moody's: sees Australia 2017 GDP between 2.0-3.0%

***Asia Key economic data:***

- (AU) AUSTRALIA Q3 CONSTRUCTION WORK DONE Q/Q: -4.9% V -1.6%E; 5th straight quarter of decline; biggest decline in 16 years

- (AU) AUSTRALIA OCT SKILLED VACANCIES M/M: -0.4% V -0.8% PRIOR

- (US) NORTH AMERICA OCT SEMI BOOK/BILL RATIO: 0.91 V 1.05 PRIOR (first print below parity in 11 months)

***Asian Equity Indices/Futures (23:30ET)***

- Nikkei closed, Hang Seng +0.4%, Shanghai Composite +0.2%, ASX200 +1.2%, Kospi +0.8%

- Equity Futures: S&P e-mini flat, Dax flat, FTSE100 +0.1%

***FX ranges/Commodities/Fixed Income (23:30ET):***

- EUR 1.0620-1.0635; JPY 110.95-111.15; AUD 0.7400-0.7435; NZD 0.7055-0.7075

- Dec Gold +0.1% at 1,212/oz; Jan Crude Oil -0.3% at $47.89/brl; Dec Copper flat at $2.55/lb

- (US) Weekly API Oil Inventories: Crude: -1.3M v +3.7M prior; first draw in 5 weeks

- GLD: SPDR Gold Trust ETF daily holdings fall 3.9 tonnes to 904.9 tonnes; 9th straight decline; lowest since June 16th

- SLV: iShares Silver Trust ETF daily holdings fall to 10,796 tonnes from 10,891 tonnes prior; 5th straight decline; lowest since July 12th

- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.8904 V 6.8779 PRIOR

- (CN) China MoF sells 3-yr bonds at 2.432% v 2.43%e

- (AU) Australia sells A$900M in 2.25% 2028 bonds; avg yield 2.8136%; bid-to-cover 1.63x (lowest on record) v 1.77x prior

Notable movers by sector:

- Consumer discretionary: Chow Tai Fook Jewellery Group 1929.HK +7.2% (H1 result); Gome Electrical Appliances 493.HK +2.0% (9mo result); Skyworth Digital 751.HK -6.4% (H1 result); AP Eagers APE.AU +3.3% (guidance)

- Consumer staple: Australian Agricultural Company AAC.AU -2.6% (H1 result)

- Financials: Mirvac Group MGR.AU +3.1% (Credit Suisse upgraded to outperform); Programmed Maintenance Services PRG.AU +8.5% (H1 result)

- Industrials: Elders ELD.AU -1.5% (acquisition)

- Technology: Webjet WEB.AU +8.3% (partnership with Dida Travel)

- Materials: BHP +2.5%, Rio Tinto +2.4%, Fortescue FMG.AU +2.4% (iron ore rises); Galaxy Resources GXY.AU +4.6% (Mt Cattlin updates); Orocobre ORE.AU +2.4% (affirms guidance)

- Healthcare: Benitec Biopharma BLT.AU -4.8% (Q1 result)

RTRS - EXCLUSIVE-EU ANTITRUST REGULATORS EXPECTED TO CLEAR WITH CONDITIONS MICROSOFT'S MSFT.O $26 BLN BID FOR LINKEDIN LNKD.N - SOURCES

• DE +11.9%, VEEV +5.1%, GME +3.7%, PTNR +2.6%, BCOM +0.7%, CAL +0.5%

• NSPR +18.7% (Continuing higher following yesterday'ss 19% rally)
• AGCO +4.8% (in sympathy with DE earnings)
• CNHI +4.4% (in sympathy with DE earnings)
• JEC +4% (Ticking higher in thin trading)
• CAT +2.3% (in sympathy with DE earnings)
• POT +0.9% (in sympathy with DE earnings)
• TCK +0.7% (raises Q4 outlook for average blended realized price for coal; maintains sales volume guidance)

• PHG +1.1% (initiated with a Buy at Citigroup)
• ADI +0.8% (upgraded to Buy from Neutral at BofA/Merrill)
• ZTO +0.5% (initiated with a Overweight at JP Morgan)

• BTE -2.4% (Announced deal to acquire heavy oil assets located in the Peace River area of northern Alberta for CAD 65 mln; enters CAD 100 mln bought deal financing)
• AYA -1.8% (confirms that it is aware of media report regarding David Baazov's proposal; no further comment at this time)

• JUNO -43% (voluntarily places on hold the Phase II clinical trial of JCAR015)
• LLY -13.5% (announces that solanezumab did not meet the primary endpoint in the EXPEDITION3 clinical trial for the treatment of mild dementia due to Alzheimer's disease)
• TCON -13.1% (Announced that it has commenced an underwritten public offering of shares of its common stock)
• ENBL -12.4% (prices 10 mln common units, by co and selling unit holder, at $14.00 per common unit)
• SCON -11% (still checking), FGP -7.8% (Lowered its quarterly distribution to $0.10/unit from $0.5125/unit)
• BIIB -7.3% (following LLY's failed Alzheimer's study and possible read-through to BIIB's aducanumab)
• KITE -6.2% (competitor Juno (JUNO -- halted) gets Phase II clinical trial of JCAR015 in adult patients with relapsed or refractory B cell acute lymphoblastic leukemia, known as the "ROCKET" placed on clinical hold for the second time this year)
• BLUE -5.7% (in smypathy with KITE/JUNO)
• CLLS -3.2% (in smypathy with KITE/JUNO)

• RTEC -1% (downgraded to Hold from Buy at Stifel)
• PRXL -0.6% (downgraded to Market Perform from Outperform at Wells Fargo)