Handelsblatt : China Rethinks Osram Acquisition

China Rethinks Osram Acquisition
Chinese firms have toned down their interest in the lighting specialist Osram in the face of growing hostility in Germany over foreign takeovers of technologically innovative domestic companies.

A set of Chinese investors who had wanted to buy the German lighting specialist Osram are rethinking plans as the German government grows more suspicious of foreign acquisitions of domestic companies, Handelsblatt has learned.
Handelsblatt reported in September that the Chinese firms San’an and Go Scale Capital had taken an interest in Osram, which manufactures chips used for iris recognition technology in smartphones.
But an industry source told Handelsblatt on condition of anonymity, that all sides were realizing that completing the deal would not be as easy as all sides had hoped.
“All sides have taken their foot off the gas a bit,” said the source. “The policymakers have woken up.”


>>> Remy Cointreau in exclusive talks to acquire Domaine des Hautes Glaces

Remy Cointreau in exclusive talks to acquire Domaine des Hautes Glaces

Remy Cointreau Group (Paris:RCO) announces that it has entered into exclusive negotiations with the shareholders of theDomaine des Hautes Glaces distillery with a view to acquiring its entire share capital.
Created in 2009, Domaine des Hautes Glaces produces exceptional single malt whiskies from the Trièves Mountains, an area located at 900m altitude in the French Alps. These whiskies are produced while adhering to a sustainable development approach: certified organic, they are manufactured in a traditional and authentic way from various grains (not only barley and rye, but also spelt and hull-less oats) and under different alpine climates, which gives them their unrivalled flavour.
The acquisition of this company represents the opportunity for Remy Cointreau to incorporate into its portfolio a high-end brand with genuine potential and to increase, over time, the value of an inventory of whiskies of the highest quality by involving the Domaine des Hautes Glaces team in this development.
The acquisition contract could be signed before the end of 2016.

>>> Volkswagen sets aside extra €400m for diesel scandal

Volkswagen sets aside extra €400m for diesel scandal

Volkswagen has set aside another €400m to cover the costs of the diesel scandal, but raised expectations for its annual revenues amid improving market conditions.
The German car maker said that annual sales would “match” last year’s total, beating previous guidance that they would fall by up to 5 per cent, write Peter Campbell in London and Patrick McGee in Frankfurt. In the third quarter of the year, VW saw sales revenues climb 1 per cent to €52bn, with a pre-tax profit of €3.34bn, compared to a loss of €2.52bn a year earlier.
The company said: “Earnings in the third quarter were impacted by further provisions recognised in connection with the diesel issue of €0.4 billion”.

This takes the total amount set aside to cover dieselgate costs, fines and consumer redress to €18.2bn so far.
Analysts previously warned the company may face “provision creep”, where it sets aside more every quarter as legal bills and prospective payouts mount.
Earlier this week VW’s deal to compensate US owners of affected diesel cars was approved by a judge in California. The $15bn deal covers compensation for the owners of nearly 500,000 VW diesel owners.
Arndt Ellinghorst, analyst at Evercore ISI, said before the results that the current quarter would be critical for understanding the investment case for VW. Not only is the US Department of Justice expected to announce a criminal fine for VW following last year’s diesel emission scandal, providing clarity for investors, but VW’s different brands are set to give a presentation on their long-term strategies.
But despite the upgrade to sales forecasts, performance at VW’s core passenger car brand, which accounts for half of group revenue but has struggled with profitability, remains below last year.
In the first nine months the marque sold 3.2m cars, below the 3.3m hit last year, and operating profits fell from €2.2bn to €1.2bn. Chief finance officer Frank Witter said: “Despite major challenges and the negative impact of the diesel issue, the Volkswagen Group remains on a solid financial footing.”

>>> What to look at today - 27th of October 2016

Dow +0.17% S&P -0.17% Nasdaq -0.63% Russell -0.93%
US Market closed on a mixed note with Tech lower following Apple earnings and blue chip Outperforming. Oil was volatile ahead of EIA reports, WTI traded down to $48.88 to above $50 to close -1.4% at $49.17. S&P 500 finished off its worst level of the day as seven sectors ended in the red. Real estate (-1.3%), health care (-0.7%), and technology (-0.5%) finished at the bottom of the leaderboard while financials (+0.6%), industrials (+0.4%), and energy (+0.3%) led the pack. Alphabet & Facebook finished lower, Alphabet is scheduled to release it Q Ern tomorrow ev. Volume today were slightly above with 863mil shares (av. 853). US After Hours OCN +16%, FFIV +5%, TSLA +4%, VMW +4% on earnings/guidance, SCTY +3.3% higher with Tesla... CYH -20%, INFN -11%, GRPN -11%, PPC -8%, RHI -8% on earnings/guidance, hospital names lower with CYH. China Stats Bureau: market demand remains weak in general; Companies profit continue positive trend. BOJ Gov Kuroda: Yield curve moving inline with shape we considered desirable at previous policy meeting; May not need to buy ¥80T to keep 0% 10-year JGB yield in the future. BoJ Deputy Gov Iwata: Large scale JGB buys are still necessary

Nikkei -0.32% Hang Seng -1.05% CSI -0.44% Shanghai -0.35%

Eur$ 1.0909 CNH 6.7855 CNY 6.7769 GBP 1.2221 CHF 0.9934 RUB$ 62.7567 WTI$ 49.26 (+0.08%)

S&P -0.14% EuroStoxx -0.39% Dax -0.44% FTSE -0.47% SMI -0.28%

Macro :
- Banks Could Lose Passporting After Brexit: Top U.K. Official
- Treasury Selloff Is About to End If Consensus Forecast Is Right

Keep an eye on :
- ABBN VX : ABB 3Q Operational Ebita Slightly Beats, Orders Miss Estimates
- AF FP : Dutch Govt Wants KLM to Stay Independent Within Air France-KLM
- ASM NA : ASM International 3Q Net Sales Drop, Authorizes EU50m Buyback
- CS FP : Axa to Proceed With Tallest City of London Tower Despite Brexit
- BKIA SM : Spain to Seek More Time for Bankia Privatization: Confidencial
- BAS GY : BASF Repeats 2016 Outlook; Confirms 3Q Preliminary Figures
- BAS GY : BASF Says Demand From Car, Construction Sectors Remained Robust
- BAYN GY : Bayer Plans Approx. EU5 Bln Mandatory Convertible Bond Sale: HB
- BBVA SM : BBVA 3Q Net Beats Estimate; Fully Loaded CET1 11%
- BPI PL : BPI CEO Says Caixabank, Portuguese Bank Aligned on Novo Banco
- CLN VX : Clariant 3Q Ebitda Ex-Items Misses; Confirms 2016, M/T Targets
- COFB BB : Cofinimmo Sells EU70m 1.70% 10-Year Bonds in Private Placement
- BN FP : Dr Pepper Snapple Said in Talks to Buy Bai Brands: Reuters
- DBK GY : Deutsche Bank Posts Unexpected 3Q Profit; CET1 Ratio 11.1%
- DBK GY : Deutsche Bank Says ‘Negative Perception’ Prompted Volume Drop, 3Q Global Markets Sales & Trading Revenue Rises, Deutsche Bank to Sell Mexico Banking Units to InvestaBank
- DPW GY : Deutsche Post Approved Additional 3m-Share Buyback on Oct. 25
- FER SM : Ferrovial 9M Net Falls 42% to EU279 Million
- FRE GY : Fresenius SE 3Q in Line, Raises Lower End of FY Guidance
- FMC GY : Fresenius Medical Care 3Q Basic EPS Beats, Keeps Forecast
- GSK LN : GSK Said Considering Parts of Valeant’s INova: AFR
- GVNV NA : GrandVision 3Q Revenue, Adj. Ebitda Rise; Confirms Outlook
- ING FP : Ingenico 3Q Revenue Beats Estimate; Confirms 2016 Objectives
- IPS IM : Ipsos 3Q Revenue Up, Keeps 2016 Operating Margin Forecast
- LI FP : Klepierre 9-Month Retailer Sales Up, Confirms FY Guidance
- KBC GY : Kontron 3Q Sales Fall 21%; Sees 2H Rev. Comparable to 1H
- KGX GY : Kion 3Q Ebit Below Estimates, Full Year Outlook Confirmed
- KORI FP : Korian 3Q Rev. EU754M, Organic Growth 4.1%
- KPN NA : KPN 3Q Adj. Ebitda Beats Ests.; Keeps Outlook Unchanged
- LIN GY : Praxair Expands On-Site Business for China Wastewater Customers
- LUPE SS : Lundin 3Q Sales Miss; Raises Year Output View
- MDM FP : Bain, Compagnie Marco to Sell 13.3% Stake in Maisons Du Monde
- TL5 SM : Mediaset Espana 9M Net EU131.8M vs EU113.8M Year Earlier
- MRL SM : Acciona Seeks to Transfer Property to Merlin: El Confidencial
- NXI FP : Nexity 9-Month Rev. Drops, Raises New Home Reservations Target
- NOKIA FH : Nokia 3Q Sales, Adj. Operating Profit Beat Ests.; Names New CFO
- PALANTIR IPO : Palantir considers IPO and predicts profit in 2017, Data analytics start-up’s possible flotation would provide liquidity to employees - FT
- PSG SM : Prosegur Seeks Holder Approval for Sale or IPO of Cash Mgmt Unit
- RAND NA : Monster Worldwide Rejects MNG Tender; EC Approves Randstad Deal
- SU FP : Schneider Electric 3Q Rev. Drops on Middle East; China Improves
- WAF GY : Siltronic 3Q Sales Rise, Sees Improvement in 2016 Ebitda Margin
- STL NO : Statoil 3Q Adj. Net Falls to Loss vs Est. for Gain; Div. Matches
- RBS LN : RBS Setting Aside More Funds to End Investor Legal Claims: Sky
- SCR FP : Scor 9-Month Premiums Rise, Net Down; Confirms Premiums Goal
- SNAP IPO : Snapchat Said to Seek to Raise as Much as $4b in IPO
- SEV FP : Suez 9-Month Revenue Rises, Says on Track With FY Targets
- SIK VX: Sika 9M Sales Up 6.3% in Local Currencies; Confirms 2016 Targets
- STM FP : STMicro 3Q Sales in Line; 4Q Gross Margin Beats Estimates
- TKTT FP : Tarkett Year Net Sales View Trails Est., Sees Soft Demand in 4Q
- TEC FP : Technip 3Q Net, Ebitda Beat Ests.; Raises FY 2016 Targets
- TEF SM : O2 UK CEO Rules Out IPO in 2016
- TNET BB : Telenet 3Q Adj. Ebitda Beats Ests.; Says on Track for FY Outlook
- TEF SM : Telefonica 3Q Oibda EU4.18b; Est. EU4.06b
- TSLA US : Tesla Doesn’t Require Capital Raise for Model 3, Musk Says
- UCG IM : UniCredit Weighs Conversion Or Bond Buyback in Cap Plan: Sole
- UCG IM : UniCredit Board to Meet on Thursday to Decide on Pekao: Parkiet
- VOLVB SS : Volvo Cars Says 3Q Operating Profit Rises 62%
- VONN SW : Vontobel Advised Client Assets CHF143.7b; Sees Solid 2016 Result
- WCH GY : Wacker Chemie 3Q Sales Miss Estimate; Confirms 2016 Outlook

>>> Europe : Brokers Upgardes & Downgrades - 27th of October 201

>>> Up
*Abertis Raised to Buy at AlphaValue
*ADP RAISED TO BUY AT HSBC
*Big Yellow Group Raised to Buy at Jefferies

>>> Down
*Alfa Laval Cut to Reduce at AlphaValue
*ANTOFAGASTA CUT TO ’UNDERPERFORM’ AT EXANE BNP PARIBAS
*Cap Gemini Cut to Equal Weight at Barclays
*DATAGROUP AG CUT TO ’HOLD’ AT BAADER-HELVEA
*HEINEKEN CUT TO ADD VS BUY AT ALPHAVALUE
*Norwegian Cruise Cut to Neutral at JPMorgan, PT $44
*NOVOZYMES CUT TO SELL AT NORDEA
*Robert Half Cut to Market Perform at William Blair
*Royal Caribbean Cut to Neutral at JPMorgan, PT $73

>>> PT Change


>>> Initiation
*Halma Rated New Overweight at Morgan Stanley, PT 1250p

>>> Call
>> Stock
*VOLVO ADDED TO HSBC EUROPE SUPER 10 PORTFOLIO; DANONE EXITS

>>> Asian Update

Asia Mid-Session Market Update: New Zealand trade deficit widens to record high; China industrial profit growth slows


***US Session Highlights***
- (US) SEPT ADVANCE GOODS TRADE BALANCE: -$56.1B V -$60.5BE
- (US) OCT PRELIMINARY MARKIT SERVICES PMI: 54.8 V 52.5E (highest since Nov 2015)
- (EU) ECB reportedly almost certain to continue buying bonds beyond current March end date; expected to ease program rules - press
- (US) SEPT NEW HOME SALES: 593K V 600KE: median price jumps
- (US) DOE CRUDE: -0.6M V +2ME; GASOLINE: -2M V -0.5ME; DISTILLATE: -3.4M V -1ME
- Chipotle shares slump after street views initial FY17 outlook as optimistic
- Apple investors take profit following Q3 results

***US markets on close: Dow +0.2%, S&P500 -0.2%, Nasdaq -0.6%***
- Best Sector in S&P500: Industrials
- Worst Sector in S&P500: Healthcare
- Biggest gainers: AKAM +14.6%, OI +10.8%, JNPR +10.2%, FLIR +10.1%, TSS +5.7%
- Biggest losers: EW -17.1%, CMG -9.3%, LH -8.6%, LUV -8.5%, AMP -7.3%
- At the close: VIX 14.2 (+0.8pts); Treasuries: 2-yr 0.87% (+1bp), 10-yr 1.79% (+3bp), 30-yr 2.53% (+3bp)

***US movers afterhours***
- OCN: Reports Q3 GAAP $0.08 v -$0.44e, R$359.4M v $354Me; +16.2% afterhours
- CAKE: Reports Q3 $0.70 v $0.61e, R$560.0M v $556Me; +8.1% afterhours
- SFLY: Reports Q3 -$0.86 v -$0.96e, R$187.3M v $184Me; +7.0% afterhours
- NOW: NOW: Reports Q3 $0.24 v $0.20e, R$357.7M v $352Me; +5.8% afterhours
- PLNT: Reports Q3 $0.16 v $0.13e, R$87M v $77.8Me; +5.8% afterhours
- WDC: Reports Q1 $1.18 v $1.05e, R$4.71B v $4.48Be; +5.3% afterhours
- TSLA: Reports Q3 $0.71 v $0.14e, R$2.30B v $2.13Be; +4.3% afterhours
- VMW: Reports Q3 $1.14 v $1.10e, R$1.78B v $1.76Be; +2.4% afterhours
- NEM: Reports Q3 $0.38 v $0.51e, R$1.79B v $1.98Be; -1.1% afterhours
- TRN: Reports Q3 $0.55 v $0.52e, R$1.11B v $1.24Be; -5.4% afterhours
- RCII: Reports Q3 $0.11 v $0.09e, R$693.9M v $698Me; -6.6% afterhours
- AKS: Files to sell 65M shares through JPM, BAC, GS, WFC (27% of shares outstanding); -6.7% afterhours
- ARRS: Reports Q3 $0.77 v $0.76e, R$1.74B v $1.74Be; -6.9% afterhours
- GRPN: Reports Q3 -$0.01 v -$0.02e, R$720.5M v $708Me; acquires LivingSocial; no terms disclosed; -11.0% afterhours
- CYH: Guides Q3 -$0.35 v +$0.36e, R$4.38B v $4.25Be, EBITDA $465M v $661M y/y, SSS +1.2%; -18.3% afterhours

***Asia Session Notable Observations, Speakers and Press***
- (CN) China Stats Bureau: market demand remains weak in general; Companies profit continue positive trend (**comments following Industrial Profits data)
- (JP) BOJ Gov Kuroda: Yield curve moving inline with shape we considered desirable at previous policy meeting; May not need to buy ¥80T to keep 0% 10-year JGB yield in the future.
- (JP) BoJ Deputy Gov Iwata: Large scale JGB buys are still necessary - press
- (JP) BOJ increasingly more sensitive to financial sector in setting monetary policy; Expected to hold policy unchanged at the upcoming meeting next week - Nikkei
- New Zealand trade deficit widens to record high due to one-off rise in aircraft imports; Exports to US fell over 16% but shipments to China rose 2% y/y; Dairy exports down 1.2%.

***Asia Key economic data:***
- (CN) CHINA SEPT INDUSTRIAL PROFITS Y/Y: 7.7% V 19.5% PRIOR; YTD: 8.4% V 8.4% PRIOR
- (NZ) NEW ZEALAND SEPT TRADE BALANCE (NZ$): -1.44B V -1.15BE; 3rd straight and RECORD deficit
- (AU) AUSTRALIA Q3 IMPORT PRICE INDEX Q/Q: -1.0% V -0.8%E; EXPORT PRICE INDEX Q/Q: 3.5% V 2.0%E
- (SG) SINGAPORE Q3 PRELIMINARY UNEMPLOYMENT RATE: 2.1% V 2.2%E

***Asian Equity Markets (00:30ET)***
- Nikkei -0.5%, Hang Seng -1.2%, Shanghai Composite -0.3%, ASX200 -1.1%, Kospi +0.3%

***FX ranges/Commodities/Futures/Fixed Income (00:30ET):***
- EUR 1.0890-1.0910; JPY 104.30-104.70; AUD 0.7620-0.7650; NZD 0.7145-0.7160
- Dec Gold flat at 1,266/oz; Dec Crude Oil +0.2% at $49.26/brl; Copper -0.1% at $2.14/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 14.2 tonnes to 942.6 tonnes; 1-month low
- Equity Futures: S&P e-mini flat, Dax -0.1%, FTSE100 -0.1%
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.7736 V 6.7705 PRIOR
- (CN) PBOC to inject CNY115B in 7-day reverse repos, CNY55B in 14-day reverse repos, and CNY40B in 28-day reverse repos
- JGB: (JP) Japan MoF sells ¥2.08T in 2-yr 0.1% JGBs; Avg yield: -0.237% v -0.263% prior; bid to cover: 4.41x v 3.78x prior

***Asia movers***
- Consumer discretionary: Belle International Holdings 1880.HK -4.3% (KGI cuts to underperform); Ajisen China Holdings 538.HK -4.2% (Q3 result); APN News APN.AU -18.6% (completes capital raising); JB Hi-Fi JBH.AU +1.4% (Q1 result); H2O Retailing Corp.8242.JP +3.9% (H1 result)
- Financials: PAX Global Technology 327.HK -5.5% (9-month result); National Australia Bank NAB.AU +1.4% (FY16 result); Challenger Financial Services Group CGF.AU +4.4% (affirms guidance); Steadfast Group SDF.AU -4.5% (Q1 result)
- Industrials: Kia Motors Corporation 000270.KR -0.5% (Q3 result)
- Technology: Samsung Electronics 005930.KR +1.2% (Q3 final result); Fujitsu 6702.JP +1.2% (H1 result)
- Materials: Whitehaven Coal WHC.AU -2.6% (guidance); Newcrest Mining NCM.AU -2.6% (Q1 result)
- Energy: Beach Energy BPT.AU -2.7% (Q1 result)
- Healthcare: Blackmores BKL.AU -1.4% (Q1 result)
- Telecom: SK Telecom 017670.KR +0.7% (Q3 result)

>>> US After Hours Summary: OCN +16%, FFIV +5%, TSLA +4%, VMW +4% on


After Hours Summary: OCN +16%, FFIV +5%, TSLA +4%, VMW +4% on earnings/guidance, SCTY +3.3% higher with Tesla... CYH -20%, INFN -11%, GRPN -11%, PPC -8%, RHI -8% on earnings/guidance, hospital names lower with CYH

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: OCN +15.6%, TER +11.7% (light volume), TTMI +9.6%, UCTT +8.3%, CAKE +8.3%, PCMI +8.3% (ticking higher), SFLY +7%, PLNT +5.8%, PTC +5.6%, WDC +5.5%, NOW +5.2% (also Chairman Paul Barber resigns; CEO Frank Slootman selected as replacement), FFIV +5.1%, BWLD +4.6%, BOOT +4.5%, TSLA +4.4%, QTM +4.2%, MB +4.2%, VMW +3.6%, EGHT +3.4%, ATNI +2%, CRY +1.8%, AEM +1.5%, ABX +1.4%, EPE +1.3%, DLB +1.1%, JBT +1.1%, CDE +1%

Companies trading higher in after hours in reaction to news: VNR +13.6% (made the approximate $15 mln semi-annual interest payment on its 7.875% Senior Notes due 2020; entered into limited waiver and amendment to its reserve-based credit facility), GALE +6.7% (shareholders approve amendment to effect a reverse stock split at a ratio of not less than 1 for 2 and not greater than 1 for 20), SCTY +3.3% (on TSLA earnings), AMAG +1.2% (ticking higher; initiated with a Buy at Needham)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: CYH -20.2% (reports prelim Q3 results; cites lower than anticipated results caused by lower than expected volume / larger than anticipated reductions to reimbursement; lowers 2016 adj EBITDA guidance), ESND -11.7%, AXTI -11.7%, INFN -11.2%, GRPN -11%, PRXL -10.5% (also approves new $200 mln stock repurchase), CMPR -9.5%, RWLK -9% (also commences an underwritten public offering of units, which consist of ordinary shares of the Company and warrants to purchase ordinary shares), PPC -8%, RHI -7.8%, KRA -7.1%, ARRS -6.9%, NTGR -6.3%, RCII -6%, TRN -5.3%, TILE -4.8%, ORLY -2.9%, MMLP -2.6%, MUR -2.4% (ticking lower), ECHO -2.2%, FISV -2.1%, CMO -1.6% (ticking lower), VAR -1.4% (also announces that Elisha Finney to retire as CFO; Varian Medical and McKesson Specialty Health announce a strategic agreement for the deployment and servicing of Varian advanced radiotherapy equipment and software over a three-year period), NEM -1.1% (also appoints Nancy K. Buese to succeed Laurie Brlas as Executive Vice President and CFO effective October 31), TIS -0.7% (light volume)

Companies trading lower in after hours in reaction to news: TBPH -9.1% (commences public offerings of $100 mln of ordinary shares and $150 mln convertible senior notes due 2023; also files mixed securities shelf offering), AKS -6.9% (commences a registered offering of 65,000,000 shares of its common stock), ABEO -6% (commences common stock offering), THC -2.6% (CYH sympathy), HLX -2.4% (to offer approx. $125 mln of Convertible Senior Notes due 2022), HCA -1% (CYH sympathy; also announces agreement to terminate hospital lease and associated Joint Operating Agreement in Oklahoma)