>>> What to look at today - 22nd of November 2016

Dow +0.47% S&P +0.75% Nasdaq +0.89% Russell +0.50%
US Market closed higher. Crude oil moved was one of the catalyst. energy component rallied 4.1% ($48.27/bbl; +$1.89) after several oil producers made upbeat comments regarding the elusive OPEC supply cap agreement. Iranian Oil Minister Bijan Namdar Zanganeh stated that the oil cartel will likely reach a consensus regarding cuts at its official meeting on November 30. Separately, Iraqi Oil Minister Jabbar al-Luaibi indicated that three new proposals will be brought to the group during technical meetings taking place today and tomorrow. Softening in the US Dollar Index (100.85, -0.36, -0.36%) boosted dollar-denominated commodities. ten sectors finishing with gains. The energy (+2.2%), utilities (+1.1%), and technology (+1.1%) sectors ended in the lead while real estate (-0.2%), financials (+0.3%) and health care (+0.3%) rounded out the board. TSN -14.5% on weaker-than-expected quarterly results and disappointing full-year 2017 earnings guidance. Volume were below average with 842mil shares. US After Hours SBLK +8.1%, ENTA +3.1%, SINA +1.5%, PANW -12.5%, DY -11%, PNNT -10.3%, BECN -7.7%, VIPS -7%, GLBS -4.4%, JACK -3.4%, WB -1.8%. In Asia, Yuan fix set firmer for the first time in 13 days. Magnitude 7.3 earthquake reported in Japan; Initial warnings called for 3m tsunami; Subsequently, tsunami waves were much smaller and damage to property was minimal. PM Abe: Global economy faced with large downside risks; TPP is meaningless without participation of US, no point to implement. BOJ Gov Kuroda: Reiterates CPI to meet 2% target around FY18; Too early to discuss exit strategy or ways to shrink BOJ balance sheet; No sharp decline in liquidity of bond markets; New policy stance (yield control) is more sustainable.

Nikkei +0.31% Hang Seng +1.34% CSI +0.62% Shanghai +0.79%

Eur$ 1.0617 CNH 6.9146 CNY 6.8909 JPY 111.02 GBP 1.2485 CHF 1.0102 RUB 63.6389 WTI 48.72 +1.02%

S&P +0.36% EuroStoxx +0.92% FTSE +0.71% DAX +0.76% SMI +0.36%

Macro :
Asian Stocks Rise for Second Day as Commodities Rally With Won
Fed Hike Is Certainty for Bond Traders as Market Odds Reach 100%
Chinese-Made $100 Billion City Near Singapore 'Scares Everybody'

Keep an eye on :
- AIR FP : Iran Says Can’t Afford Cash Payment for Airbus Planes: ILNA
- BAYN GY : Bayer CEO Tells Bild Monsanto Takeover Going According to Plan
- CSGN VX : Credit Suisse Said to Face Tax Probe Over Undeclared Accounts
- DIS US : Disney Falls Amid WSJ Report of Amazon Mulling Sports Package
- EDF FP : Ibereolica, EDF Closed Chile Wind Farm Financing: Reuters
- ENEL IM : Enel Plans to Dispose of EU3b of Assets, Streamline Structure
- ENGI FP : Engie to Offer Gas, Electricity to UK Households: Les Echos
- EI FP : Essilor Cuts 2016 Targets, Citing Slowdown in U.S. Market
- LUPE SS : Lundin Petroleum Raised to Overweight at Barclays
- AM FP : Natixis AM Always Looking at Acquisition Opportunities: Echos
- NOVOb DC : Novo Nordisk Gets FDA Approval for Xultophy in Type 2 Diabetes
- RDSA NA : Shell May Looks to Expand Quest CCS Project in Alberta
- SAN FP : Sanofi/Zealand Diabetes Combo Treatment Wins FDA Approval
- TEF SM : Telefonica Deutschland CEO Thorsten Dirks to Leave in 2017
- VONN SW : Vontobel Family Revamps, Extends Shareholder Pool; Holds 50.7%
- VOW3 GY : Audi’s China Dealers Said to Seek to Block SAIC Motor Deal: WSJ
- ZC FP : Zodiac Full-Year Net Misses Estimates, Hurt by Cost Overruns

>>> Europe : Brokers Upgrades & Downgrades - 22nd of November 2016

>>> Up
*Alpha Bank Raised to Buy at Citi
*Bouygues Raised to Neutral at Goldman, PT EU35.50
*Bouygues Raised to Outperform at Credit Suisse
*Eurocommercial Properties Raised to Buy at HSBC
*Informa Raised to Neutral at Citi
*Klepierre Raised to Buy at HSBC
*Randgold Raised to Neutral at Citi
*UBM Raised to Buy at Citi
*Wolters Kluwer Raised to Outperform at Credit Suisse

>>> Down
*Pearson Cut to Underperform at Credit Suisse
*Tenaris Cut to Underperform at Macquarie
*UBM Cut to Neutral at Credit Suisse
*Vallourec Cut to Underperform at Macquarie

>>> PT Change


>>> Initiation
*Bollore Rated New Buy at HSBC, PT EU4.10
*Ferrari Rated New Buy at Berenberg, PT EU65
*Fiat Rated New Hold at Berenberg, PT EU7.70
*Iliad Reinstated Neutral at Goldman, PT EU210
*Informa Rated New Neutral at Credit Suisse, PT 700p
*Michelin Rated New Sell at Berenberg, PT EU80
*Nokian Renkaat Rated New Buy at Berenberg, PT EU39
*Peugeot Re-initiated Sell at Berenberg, PT EU11.50
*Publicis Rated New Underperform at Credit Suisse, PT EU63
*Renault Re-initiated Hold at Berenberg, PT EU75
*Sky Rated New Outperform at Credit Suisse, PT 980p
*Valeo Rated New Hold at Berenberg, PT EU50
*WPP Rated New Outperform at Credit Suisse, PT 2000p

>>> Call

>>> Asian Update

Asia Mid-Session Market Update: 7.3 earthquakes in Japan inflicts minimal damage; Fitch warns about China credit bubble; USD rally pauses


***US Session Highlights***
- (US) Fed Vice Chair Fischer: seen some appreciation of USD currency; higher USD won't stop Fed from doing what needs to be done for US economy
- (US) Oct Chicago Fed National Activity Index: -0.08 V 0.00e; prior revised lower
- OPEC experts are said to be making 'some progress' in ongoing technical meeting talks in Vienna - press

***US markets on close: Dow +0.5%, S&P500 +0.8%, Nasdaq +0.9%***
- Best Sector in S&P500: Basic Materials
- Worst Sector in S&P500: Healthcare
- Biggest gainers: MRO +8.9%, CHK +7.0%, RRC +7.0%, SWN +6.2%, FCX +5.6%
- Biggest losers: TSN -14.5%, HSIC -5.4%, EXR -2.6%, GPS -2.4%, TGNA -2.3%
- At the close: VIX 12.4 (-0.4pts); Treasuries: 2-yr 1.09% (flat), 10-yr 2.34% (flat), 30-yr 3.01% (flat)

***US movers afterhours***
- SBLK: Reports Q3 -$0.44 v -$0.65e, R$59.9M v $42.8M +10.9% afterhours; +4.1% afterhours
- SINA: Reports Q3 $0.56 v $0.40e, R$274.9M v $255Me; +1.7% afterhours
- VIPS: Reports Q3 $0.15 v $0.15e, R$1.80B v $1.84Be; -4.9% afterhours
- BECN: Reports Q4 $0.88 v $0.91e, R$1.17B v $1.27Be; -6.7% afterhours
- PNNT: Reports Q4 $0.21 v $0.25e; -10.3% afterhours
- DY: Reports Q1 $1.67 v $1.65e, R$799.2M v $801Me; -11.8% afterhours
- PANW: Reports Q1 $0.55 v $0.53e, R$398M v $400Me; Guides Q2 $0.61-0.63 v $0.63e, R$426-432M v $438Me; -12.8% afterhours

***Politics***
- (US) President-elect Trump releases video of planned measures on day one; To withdraw from TPP and negotiate bilateral trade deals; Canceling restrictions on production of shale energy and clean coal.

***Asia Session Notable Observations, Speakers and Press***
- S&P500, Dow Industrials, Nasdaq, and Russell indices all close at record highs for the first time since 1999.
- USD breaks a string of gaining sessions as US treasuries selloff subsides.
- Yuan fix set firmer for the first time in 13 days.
- Oil prices extend gains on OPEC optimism; US energy sector outperforms.

Japan
- Magnitude 7.3 earthquake reported in Japan; Initial warnings called for 3m tsunami; Subsequently, tsunami waves were much smaller and damage to property was minimal. USD/JPY initially fell 50pips below 110.50 before recovering later in the session.
- Fin Min Aso: No major damage showing from the earthquake
- PM Abe: Global economy faced with large downside risks; TPP is meaningless without participation of US, no point to implement
- BOJ Gov Kuroda: Reiterates CPI to meet 2% target around FY18; Too early to discuss exit strategy or ways to shrink BOJ balance sheet; No sharp decline in liquidity of bond markets; New policy stance (yield control) is more sustainable.
- BOJ Exec Dir Amamiya: Last week's fixed rate operations was effective, intended to stabilize the market; To continue use of this policy tool as needed - press

China
- Fitch: Affirms China A+ rating; Outlook stable; build-up of imbalances pose risks to its basic economic and financial stability; vulnerabilities will rise over our 2016-18 forecast horizon; Current policy measures do not adequately address the inherent risks of an economic model that has grown dependent on credit growth rising well in excess of nominal GDP to achieve official growth targets.
- S&P: Sales of China property developers to fall 5-10% in 2017 due to govt cooling measures vs expected increase of 20% in 2016
- Researchers call for PBoC to accelerate depreciation of CNY; Should abandon intervention in FX market - Chinese press

***Asia Key economic data:***
- (CN) China Oct Conference Board Leading Economic Index: 0.8% v 1.2% prior (3-month low)
- (TW) Taiwan Oct Unemployment Rate: 3.9% v 3.9%e
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 115.5 v 118.2 prior

***Asian Equity Markets (23:30ET)***
- Nikkei +0.2%, Hang Seng +1.3%, Shanghai Composite +0.7%, ASX200 +1.3%, Kospi +0.8%

***FX ranges/Commodities/Futures/Fixed Income (23:30ET):***
- EUR 1.0625-1.0650; JPY 110.25-110.90; AUD 0.7365-0.7400; NZD 0.7060-0.7085
- Dec Gold +0.6% at 1,217/oz; Jan Crude Oil +1.0% at $48.72/brl; Dec Copper +1.6% at $2.56/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 6.5 tonnes to 908.8 tonnes; 8th straight decline; lowest since June 20th
- Equity Futures: S&P e-mini +0.4%, Dax +0.3%, FTSE100 +0.4%
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.8779 V 6.8985 PRIOR; First stronger Yuan setting in 13 sessions
- (AU) Australia Finance Ministry (AOFM) sells A$150M in 1.25% 2040 Indexed bonds; avg yield 1.0974%; bid-to-cover 2.75x

Notable movers by sector:
- Consumer discretionary: Billabong BBG.AU +8.0% (guidance); Nine Entertainment Co Holdings NEC.AU +2.4% (Macquarie raises stake)
- Consumer staples: A2 Milk ATM.NZ +6.1% (Q2 result)
- Financials: Abacus Property Group ABP.AU +5.8% (JPMorgan raised to overweight); Charter Hall Group CHC.AU +2.4% (NAB raises stake)
- Industrials: Calsonic Kansei Corp 7248.JP +8.3% (KKR tender offer speculation); DIC Corp 4631.JP +3.0% (speculation about op outflows); Downer DOW.AU +1.6% (A$2B contract)
- Technology: Technology One TNE.AU +12.3% (FY16 result); Konica Minolta Holdings 4902.JP +2.6% (Deutsche Bank raised to buy); Omron Corp 6645.JP +1.4% (Nomura raised to buy)
- Energy: Beach Energy BPT.AU +2.5% (oil rises); Oil Search OSH.AU +2.3% (guidance); JX Holdings 5020.JP +1.3% (Japan quake)
- Utilities: J-Power 9513.JP +1.8% (acquisition); Tokyo Electric Power Co 9501.JP -1.4% (Japan earthquake)

>>> US After Hours Summary: PANW, DY highlight after-hours earnings de


After Hours Summary: PANW, DY highlight after-hours earnings decliners

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SBLK +8.1%, ENTA +3.1%, SINA +1.5%.

Companies trading higher in after hours in reaction to news: RIGP +6.8% (Transocean (RIG) agrees to increase the consideration for its pending acquisition of each outstanding common unit of Transocean Partners), CTIC +3.7% (To present data from the randomized Phase 3 PERSIST-2 clinical trial at ASH), TLLP +3.2% (Announces $1.1 bln in acquisitions, sees immediate accretion to unitholders), BGNE +3.1% (Baker Bros increases stake), HRL +2.9% (Sells Farmer John, Saag's Specialty Meats, and three farm operations for $145 mln; increases dividend), WLL +2.7% (To sell its 50% interest in its Robinson Lake natural gas processing plant and associated natural gas gathering system and its 50% interest in its Belfield natural gas processing plant and associated natural gas, crude oil and water gathering systems for approximately $375 million).

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance:  PANW -12.5%, DY -11%, PNNT -10.3%, BECN -7.7%, VIPS -7%, GLBS -4.4%, JACK -3.4%, WB -1.8%.

Companies trading lower in after hours in reaction to news: ASM -11.6% (Announces $10 mln bought deal offering), GTE -5.4% (Announces $130 mln bought-deal financing), PLUG -3.4% (Files for $200 mln mixed securities shelf offering ), CCJ -3.1% (Following Japan earthquake), FTNT -2.8% (In sympathy following Palo Alto (PANW) earnings), BFAM -1.9% (Announced secondary offering of 2 mln shares of common stock by selling stockholders), BDGE -1.9% (Commenced an underwritten public offering of approximately $50 mln of its common stock), FEYE -1.9% (In sympathy following Palo Alto (PANW) earnings), CYBR -1.1% (In sympathy following Palo Alto (PANW) earnings).

>>> US Close Dow +0.47% S&P +0.75% Nasdaq +0.89% Russell +0.50%

Closing Market Summary: Averages Begin Week with Closing Records

The stock market began an abbreviated week on a higher note as the three major averages notched new all-time closing highs. The Nasdaq Composite (+0.9%) finished ahead of the S&P 500 (+0.8%) and the Dow Jones Industrial Average (+0.5%). The Russell 2000 (+0.4%) also carved out a new all-time high, extending its November gain to 10.8%.

The major averages jumped at the start of the session as crude oil extended its recent winning streak. The energy component rallied 4.1% ($48.27/bbl; +$1.89) after several oil producers made upbeat comments regarding the elusive OPEC supply cap agreement. Iranian Oil Minister Bijan Namdar Zanganeh stated that the oil cartel will likely reach a consensus regarding cuts at its official meeting on November 30. Separately, Iraqi Oil Minister Jabbar al-Luaibi indicated that three new proposals will be brought to the group during technical meetings taking place today and tomorrow.

Softening in the US Dollar Index (100.85, -0.36, -0.36%) boosted dollar-denominated commodities. The currency index moved off a fresh 14-year high overnight as the euro and the pound gained ground against the greenback. The single currency ticked up 0.2% (1.0629) against the buck while the pound/dollar pair finished higher by 1.2% (1.2494). The euro remains down 3.2% against the dollar in November.

A pullback in market rates helped keep a lid on recent rate angst while a positive bias in global markets also underpinned today's advance. 

The major averages carved out all-time highs in the final hour of action with ten sectors finishing with gains. The energy (+2.2%), utilities (+1.1%), and technology (+1.1%) sectors ended in the lead while real estate (-0.2%), financials (+0.3%) and health care (+0.3%) rounded out the board. 

The influential technology sector (+1.1%) paced today's advance as large cap names continued their recent rebound. Facebook (FB 121.77, +4.75) finished higher by 4.1% after the company reported a $6.0 billion share buyback. Top-weighted Apple (AAPL 111.75, +1.69) ended higher by 1.5%. The broader sector has gained 0.5% so far in November, which compares to an advance of 3.4% in the benchmark index. 

In the consumer staples space (+0.7%), Tyson Foods (TSN 57.60, -9.76) tumbled 14.5% in reaction to weaker-than-expected quarterly results and disappointing full-year 2017 earnings guidance. However, the company did increase its quarterly dividend to $0.225 per share from $0.15 per share. Peer Hormel Foods (HRL 34.94, -0.64, -1.8%) moved lower in sympathy with the name. Hormel will release its quarterly results tomorrow morning. 

Retailers continued to have a mixed showing as Gap (GPS 24.99, -0.62, -2.4%) extended its post-earnings losing streak. Meanwhile, Best Buy (BBY 45.65, +0.86, +1.9%) continued to outperform after reporting upbeat results and guidance last Friday. Separately, influential Amazon (AMZN 780.00, +19.84) and Netflix (NFLX 117.96, +2.75) finished higher by 2.5% apiece. 

The financial sector (+0.3%) finished on a flat note as flattening in the yield curve weighed on banking names. The yield on the 2-yr note finished down one basis point to 1.06% while the yield on the benchmark 10-yr note slipped five basis points to 2.30%. The yield spread between the 2-yr and 10-yr note narrowed to 124 basis points from 128 basis points last Friday.

Today's trading volume was below the recent average of one billion as fewer than 842 million shares changed hands at the NYSE floor.

There was no economic data of note released today.

Tomorrow's economic data will be limited to the Existing Home Sales Report for October (consensus 5.40 million), which will be released at 10:00 ET. 

NY Post : Former Cablevision owners have gone from friends to foes: Altice


Well, how’s this for awkward.
Altice Group, the $34 billion Netherlands-based telecom behemoth that bought Cablevision in June from the Dolan family, is headed for its first programming fee fight — and sitting across the negotiating table will be none other than Dolan family-controlled AMC Networks.
When Cablevision and AMC were both owned by the Dolans, carriage disputes didn’t arise. But the ink is barely dry on Altice’s $17.7 billion acquisition of the Bethpage, LI-based cable company and already tempers are flaring.
AMC Networks airs the hugely popular “Walking Dead” series on its flagship network and owns other channels including IFC and WE. It has been running a crawl telling viewers they could lose access to the channels if it is not able to come to an agreement with Altice, which operates the Optimum-branded service.
Altice didn’t pull any punches in dealing with the family it just wooed in ordered to acquire Cablevision.
“We are working hard on behalf of our customers to negotiate an agreement with AMC Networks that is reasonable and reflects the best interests of all our customers,” an Altice rep said ahead of the Dec. 31 end of the AMC Networks programming deal.
“AMC Networks is using misleading scare tactics, threatening to black out its programming unless we agree to their excessive demands and pay significantly more to carry the same AMC channels our customers currently receive, all of which have declining viewership on our systems,” the rep added.
Altice called the behavior of the Dolan family’s AMC Networks “disappointing but not surprising given it has a history of using viewers as pawns to extract significantly higher fees from distributors.”
Stop trying to confuse viewers and instead focus on negotiating a deal that is fair, Altice chided AMC Networks CEO Josh Sapan.
This is not the first programming deal Altice executives have had to negotiate in the five months it has own the 2.6-million subscriber pay TV system — but it is the first with such vitriol.
Speaking on the firm’s third quarter earnings call, Altice USA CEO Dexter Goei said pay TV firms are “under siege by content providers.”
Programming costs are rising by about 10 percent but Altice only passes on costs of around 3.4 percent to consumers, Goei said.

Fast FT: Goldman turns bullish on commodities

The world economy is set to enter a period of rising inflation and higher growth, prompting the typically bearish US investment bank Goldman Sachs to turn overweight on commodities for next year.

Citing a “cyclically stronger environment” for commodities, Goldman said looming production cuts from Opec, the world’s oil cartel, and a reduction in supply for zinc and natural gas, should help support global commodity prices.
After a sharp climb in the US dollar in the wake of Donald Trump’s election, Goldman said its upbeat outlook on commodities should be able to withstand a stronger greenback.
“Commodity markets are entering a cyclically stronger environment after a mid-cycle pause as evidenced by the recent reacceleration in global Purchasing Managers’ Indices”, said Jeff Currie at the bank. He added that the world’s over-supplied oil markets should also move into deficit again in the second half of next year, on the back of rising demand and cutbacks in production from “high-cost countries in decline”.
This rebalancing should help support calls for a coordinated output cut from Opec, said Mr Currie:
Such a cut will likely help [producers] grow market share by sidelining higher-cost producers – as well as reduce oil price volatility.
Goldman upgraded its three, six and 12-month iron ore prices to $65, $63 and $55 per tonne respectively. It said its Goldman Sachs Return Index is now forecast to return 9 per cent on a three month basis (from -2 per cent), 11 per cent on a six-month basis (from 1.7 per cent) and 6 per cent on a 12-month basis from (8.3 per cent).
Despite warnings that higher inflation could hurt global growth by crimping consumer spending, Goldman argues:
Despite warnings by economists that high oil prices would slow growth, global economy surged ahead even as oil prices climbed above $100/bbl, and despite hopes of a growth tailwind due to lower oil prices since 2014, global growth slowed significantly when prices plunged toward $25/bbl earlier this year.
The experience from the 1970s created this deep rooted belief that, when oil prices increased, the wealth transfer from the low-saving developed markets to the high-saving emerging markets would slow growth due to the relatively lower marginal propensity to consume in the emerging markets and do the opposite as oil prices declined.

>>> EuroHEdge 2016 Nominees


The first round of nominations is based on 10 months of performance data, between January and October 2016. The second round of nominations will be announced in December.
EUROPEAN EQUITY (OVER $500M)
Nominees
AKOCovalis CapitalTT Mid-CapZebedee Focus
EQUITY MARKET NEUTRAL & QUANTITATIVE STRATEGIES
Nominees
CZ EnhancedLMRMW Market Neutral TOPS