>>> Street Pre-Market Indications 2

Investec
* AIRBUS-Q3 revs miss, Ebita small miss, keeps FY ebit f/cast...............-1%
* BANKIA-Q3 due 11:30
* BAYER-Q3 ebitda 6% beat, raises FY eps f/c, ebitda & rev f/c remain unch..+1%
* BOSS-plans to move away from luxury, focus on men’s premium mkt(HB).......+2%
* CAP GEM-Q3 sales in line, confirms FY guidance, wants bolt-on aqns in US..+1%
* CHR HANSEN-FY touch blw our ests, div better (70c vs 69c), comment follows..-1%
* EDF-spec of Polish sales soon; confident comments on French nuclear safety..+1%
* EDP-sells €100m of tariff deficit, analyst says small incremental +ive....+1%
* FERROVIAL-Q3 due after close
* HAVAS-Q3 org rev +2%, implies Q3 slowdown as 9m is 2.7%...................-1%
* HEINEKEN-Q3 organic beer vols +2%(est +1.4%), mkt prob expected a beat....+1%
* IBERDROLA-9m no’s in line to a touch ahead, comment to follow.............U/C
* INGENICO-due after close
* KERING-Q3 org gth +10.5% (+7%),big beat at Gucci, highly confident for FY..+3%
* KLEPIERRE-due after close
* KRONES-Q3 revs 2% ahead, confirms FY, gives outlook to 2020...............+2%
* LOGITECH-Q2 rev 7% beat, eps 35c vs est 25c, keeps outlook................+5%
* NOKIA-Juniper +7% after hours on Q3 beat/Q4 guidance......................+1%
* NORDEA-Q3 numbers mixed, CET1 17.9% vs est 17.4%, strong into no’s........-1%
* NOVOZYMES-Q3 miss, guides FY lower, comment to follow.....................-3%
* PEUGEOT-Q3 rev small miss (1.5%), keeps rev gwth targets...................-1%
* RED ELEC-Q3 net matches ests..............................................U/C
* RENAULT-Q3 rev 1% ahead, confirms FY guidance.............................U/C
* SAIPEM-Q3 beat, confirms 2016,2017 guidance mixed,mkt may have priced in..+1%
* SANTANDER-Q3 net 10% ahead of cons, CET1 in line,‘in line to meet goals’..+3%
* SEB SA-Q3 org sales 6%,looks like a raise to org sales & op profit ests..+3%
* SKF-due midday
* TEF DEUTSCH-Q3 oibda 1% ahead of cons, reits FY f/casts...................U/C
* TELENOR-Q3 rev in line, net miss(impairments), ebitda beat, o/look unch...+1%
* UNIBAIL-Q3 gross retail inc +6.7%, reits FY eps guidance..................U/C
* WIRECARD-Q3 in line, raised guidance on 4th Oct...........................U/C
* VINCI-Q3 rev 2% light, confirms FY outlook................................-1%
Other
* FORTUM - reit SELL, TP €11 from €10. Note published.
* ANTO'S-Update. Prod. at lower end, lowers FY17 fcast.......................-2%
* ASTRAZENECA-Positive results from Lynparza Phase 3 trial.................unch
* BUZL-Q3. #'s in line, FX positve.B/S remains strong. Weak into stmnt....+1-2%
* CYBG-Makes preliminary approach for RBS W&G unit..........................-3%
* GENEL-Update. Prod & guid small miss. Lowers FY17 guidance. Weak into stmnt...-5%
* GLAXO-Q3 due midday
* IMAG.TECH-Apple Q1 gross margin a miss, -2.5% after hrs...................-2%
* LLOYDS-Q3.PBT 1% miss. CET1 ratio better. Reaffirms Q2 expectations.......-2%
* MEGGITT-Wins $48m Chinese helicopter contract with Hangxin...............unch
* RBS-CYBG makes preliminary approach for RBS W&G unit......................+1%
* REDDE-Update.+ve momentum continues. Profit ahead of expectations.........+2%
* SIERRA RUTILE-Merger update. Extends discussion until 4th Nov. In line....unch
* VODAFONE-Fined £4.6m for breaching OFCOM billing rules....................-1%

Credit Suisse
Abertis M/P Revs €3.61bn vs cons 3.605bn, EBITDA €2.41bn vs cons €2.4bn
Aena -0.5% Q3 revenues 1.4% light, Q3 EBITDA 1.7% ahead
Antofagasta -4-5% Negative on Q4/FY16 & 17 Guidance
Airbus -1% Revenues 1% light, FCF 17% worse
Acerinox +1-2% EBITDA slightly ahead, guidance fine
Bayer R 3Q EBITDA ex items from cont. ops EU2.68B est EU2.53B
Bunzl M/P Trading update inline with market expectations
Capgemini -2% 3Q sales fall 0.6%, confirms 2016 outlook
Chr Hansen +1-2% EBIT inline, net slightly better, confirm FY guidance
Cramo -1-2% Q3 sales €184.8m, cons 186.4m, confirms FY guidance
Fred Olsen M/P Q3 Revs6% ahead, EBITDA $119m, cons 121m
Genel -3-5% 2016 revs now seen at bottom end of guidance
Gjensidige -1-2% 3Q pretax NOK1.52b cons NOK1.66b
Huhtamaki -1-2% Sales €719m vs cons €746m
Inmarsat UNCH CS REITERATE OUTPERFORM (TP 940p from 1060p)
Heineken +1% Organic consolidated beer volume beats estimates
Iberdrola +1-2% 9M ADJ. NET EU2.04B, est EU2B
Kering +5% Good numbers - Gucci LFL sales +17% (est +10)
Logitech +5-8% Q2 revenues 6% ahead, Non-GAAP EBIT 28% ahead
Lloyds -0.5% Bottom line a 3% miss, CET ratio 13.4% vs 13.3%
Meggitt +0.5% Awarded $48m contract to supply Health/Usage Monitoring Sys
Miners -1-2% Copper -0.40%, Brent -1.25%, Iron Ore +0.45%, China -0.24%
O2D +1% 3Q revs 1.88bn vs 1.82bn cons, reiterates forecast
Oils -1% API data announced a Crude build of 4.75M barrels
Nordea +1-2% Bottom line a 10% beat, CET1 at 17.9%, 50bps ahead of cons
Novozymes -3-5% Org growth disappointing, guidance adjusted to lower end
Nostrum +1% Production at 38.9 kb/d, cons 40 kb/d, guidance maintained
Peugeot +1% Sales broadly inline, lifts Europe
Red Elec M/P 3Q Net EU147.8m looks inline with consensus
Renault -1% Revenues 1.5% beat, confirmed FY forecasts
Saipem -3-5% Q3 numbers a beat, guidance weak and debt higher
Santander +1-2% CET1 up ~10bps from 10.36% to 10.47%, net income a 9% beat
SEB +1-2% Q3 rev E1.2b cons E1.18b, raises FY targets
Telenor +1% Revs in-line, EBITDA a beat by 3%
Unibail -1% 9m results inline, turnover up 5% YoY, reiterates forecast
Vinci M/P Q3 revs E10b (cons E10.2b) and confirms FY outlook
Wirecard M/P Q3 sales €268m vs cons €265m, EBITDA slightly ahead
XXL ASA -2% Q3 revs NOK2.08bn vs cons 2.19bn, keep FY guidance

RBC
*ABERTIS: +1% Q3 net income in line, EBITDA small beat.
*AIRBUS: -2% Q3 profit falls 21% on A350 costs, rev miss, FY confirmed.
*ANTO: +1% Q3 update mixed, copper prod in line, 17 guidance in focus.
*BAYER: +1% Q3 core EPS beat, raises FY Core EPS goal.
*BMW/DAI: -1% read from GREAT WALL MOTORS (-10.5%) on weak Q3 numbers.
*BOSS: +1% CEO suggests movement away from luxury towards premium segment,
*B. POPULAR: -2% Il CONFIDENCIAL: unlikely to meet Q3 estimates.
*BUNZL: -3% Q3 organic growth flat v +1% expect.,
*CAPGEMINI: 0% Q3 sales -0.6%, confirming FY guidance.
*DLG: -3% weak read through from APPLE (-3%) after hours.
*GENEL ENERGY: -3% FY prod guided down on weak production.
*HEINEKEN: +1% Q3 slight beat on volumes, +2% v +1.6% consensus, FY expectation reit.
*IBEDROLA: 0% Q3 EBITDA and net income in line, FY financial targets confirmed.
*KERING: +3% best quarter results in 3 years, Gucci +17% & Saint Laurent +34%.
*KONECRANES: +1% Q3 order intake weak, net sales and profit ahead.
*LLOYDS: -1% Q3 mixed, capital ratio increased to 13.4%, provisions 15% worse.
*LOGITECH: +3% Q2 rev beat, FY guidance confirmed.
*METRO BANK: -2% Q3 numbers in line, achieved first quarterly profit ever, downgraded.
*PEUGEOT: 0% Q3 rev miss on Chinese-European weakness, FY guidance confirmed.
*RENAULT: -1% Q3 rev in line, FY guidance confirmed.
*RED ELECTRICA: -1% Q3 results in line, EBIT & net profit tad light.
*NORDEA: +2% Q3 pre-tax profit 7% above consensus, NII slight miss.
*NOVOZYMES: -4% Q3 revs 7% miss, gross profit light, downgrades growth targets.
*SANTANDER: +2% Q3 beat, NII ahead, revenues better.
*STOREBRAND: +2% Q3 mixed, improved solvency, operating profit miss, net profit beat.
*TELEFONICA: +1% Q3 rev & EBITDA beat, good subs growth & FY guidance reiterated.
*TELENOR: +2% Q3 revs in line, EBITDA beat, FY guidance reiterated.
*VINCI: 0% Q3 revs light, but confirms FY outlook.

Shore Cap
LLOYDS-Q3 ptp 1.91b(Est2.04b).£1b PPI charge.740m pension deficit in Q3.....-3%
BUNZL-Q3 grp rev +7%.Says total performance is consistent with views.......UNCH
VODAFONE-OFCOM fines Vodafone 4.6m for failing customers....................-1%
MEGGITT-Sensing system gets $48m contract..................................UNCH
REDDE-Says trading profit is ahead of forecasts as sales gain...............+3%
CENTAUR MEDIA-Says expects to meet market estimates for year...............UNCH
PEARSON-said to be in talks to sell TutorVista..............................+1%
METRO BK-deposits +66% record increase in new accounts and swings into pft..+1%
RBS- CYBG confirms in discussion to buy Williams and Glyn...................+1%
ASTRAZEN-Phase3 ovarian cancer drugs shows improvement in survival rates...UNCH

Julius Baer
SMI -0.2%

BALN +0.9%
LOGN +5.8%

Tradegate
BAYN +1.2%
TKA -0.7%
Norma -2.6%
Krones +2%
WDI +2%
O2D +1.4%
AIR -0.6%
Santander +2.1%
CAP +0.7%
BOSS +0.2%
NZY -1.6%
Nordea +1.5%
Novo +0.7%
SBRY +2.4%
Uniper -2%

MainFirst
*BOSS-CEO wants to abandon luxury segment-Focus CMD 16th Nov........U/C
*AIRBUS-Rev 13.95b(14.7),Ebit 731m(735),Supply chain difficult......-2%
*NORDEA-NII 1.18B(1.19),CET1 17.9%(17.4),NI 888M(824.9).............+2%
*BSCH-Net 1.7b(1.54),CET1 Fully Loaded 10.47%,NII 7.8b..............+1%
*TELENOR-Rev 32.8b(32.9),Ebitda 12.5b(12),Loss 4.82b(+122.7)........+2%
*BIC-Q3 Sales 559.6m(561),Q3 EPS 1.57,Net 73.6m,Confirms FY o/l.....-2%
*RENAULT-Q3 Rev €10.55b(10.41),Confirms FY forecasts...............-1%
*KERING-Sales €3.18b(3.09),OG 10.5%(10),Gucci 17%(10),Puma 10.8%....+3%
*SEB-Rev 1.2b(1.18),ORG 6.5%,Raises FY targets......................+2%
*VINCI-Rev 10b(10.2),Confirms FY outlook, Order book s/decline.......+0.5%
*SAIPEM-Ebitda 328m(306),OP 155m(137),NI 60m(66),o/l confirmed......+2%
*LOGITECH-Sales $564m(526.2),EPS 35c(25),Ebit 53.4m(38).............+5%
*IPSEN-Q3 Sales 390.6m(400),Guidance raised for 2016................+1%
*HUHTAMAKI-Net Sales 719m(746.3),Ebit 67m(73.4),Capex revised.......-2%
*CAP GEM-Sales 3.02b(3.05),wants 2 make bolt on acq’s, Reit FY.......-1%
*BAYER-Ebitda 2.68b(2.53),Sales 11.62b(11.3),EPS 1.73(1.65).........+1%
*PEUGEOT-Q3 Rev 11.4b(11.56),Reits 2015-18 Rev.Grth target..........-1%
*KRONES-Rev 819.8m(802.8),EBT 56.3m(55.9),Confirms 2016 o/l.........+1%
*SHW-Rev 96.9m(104),Ebitda 10.7m(11),Net 3.4m(3.3),FY low end.......-1%
*O2D-Rev 1.88b(1.88),Net -105m(-90),Reits outlook for 2016..........+0.5%
*HEINEKEN-Organic Beer Vols 2%(1.4),Cons Beer Vols 54MHL(53.5)......+0.5%
*WIRECARD-Q3 Ebitda 81.4m(81),Sales 268m(267.5),+ve on Q4...........+2.5%
*KESKO-Sales 2.79b(2.81),Ebit 98.2m(91),EPS 73c(65),FY OK...........+1%
*UNIBAIL-9M Rev 1.5b,Gross Rental Inc 1.32b,sells 2 buildings.......U/C

Macquarie
* AstraZeneca AZN - Positive results in AstraZeneca Lynparza trial (Ovarian Cancer drug) +1%

*Atlantis Resources ARL- MeyGen project on track to have all turbines installed & on track by end of year. Unch

*Bunzl BNZL- trading inline, Q3 rev +7%, plans further acquisitions & funding headroom available; +1%

*CYBG- Confirms Press Spec that it is in preliminary decisions with RBS in relation to Williams & Glyn acquisition. (£1.5bn has been price mentioned) -2%

*Genel GENL- Guiding Production towards lower end of Guidance Range (c10% Downgrade). Capital expenditure also being lowered. Already factored in? -5%

*Lloyds LLOY- Underlying pretax profit GBP1.91b; est. GBP2.04b. Statutory pretax GBP811m vs GBP958m. Revenue GBP4.275b vs GBP4.237b, CET1 ratio 13.4% vs 2Q’s 13%. -1%

*Metro Bank MTRO- Q3 Update- Loans & Deposits up 12% in the quarter, customer accounts increased 68k to 848k. Total Rev up 15%. +1%

*Nostrum Oil NOG- Maintained production above 44,000 boepd, Full Year guidance remains at 40,000 boepd. Continues to reduce costs. +2%

*RBS- CYBG announces they have made an approach for the W&G branch network. Unch

Commerzbank
DAX Future -0.02% at 10740

AIR -0.7% Q3 in line, guidance confirmed, Q4 needs to deliver
BAYN +0.4% Strong margin development all over, modest increase in adj. EPS guid
BOSS +0.3% To pivot away from luxury market
CON –1.1% MS cuts to Equalweight (Overweight) – PT €185 (200)
DBK -0.7% Said to weigh alternatives to cash bonus payments
DLG –2.4% Apple -3% after hours, guidance mildly supportive
KRN +2.2% Solid Q3 with strong orders, new medium term targets focus on growth
O2D +0.7% Q3 above due to mobile service revenues
PUM +0.1% Q3 sales slightly above
SW1 –1.6% Misses on Q3, guidance challenging
VOW3 +0.1% Receives final approval for US civil settlement over $14.7bn
WDI +1.8% Delivery of anticipated strength in Q3

Jefferies
KERING: Q3 #s GOOD, impressive performance from premium brands, we reit BUY
TELENOR: Q3 #s IN LINE/BETTER and also reit guidance, stock had good run tho .. called -2%
RENAULT: Q3 revenues BEAT ~1%, but c/call didn't go well, we reit U/P...... called -2%
AIRBUS: Q3 #s MISS rev/EBIT, reit FCF + confirms o/lk, supply chain issue.. called -1%
NORDEA: Q3 #s IN LINE, but NII S/LITE sees improved NI margin in Q4 ... called +2%
O2 DEUTSCHLAND: Mobile service revenues -1.8% vs -2% cons ... called +1%
SANTANDER: Q3 NII at EUR 7.79bn, 1% above exp, fees at 2.597bn 1% above ... called +2%
IPSEN: RAISES guidance for Specialty Care sales to above 15% growth, we reit BUY ... called +1%

>>> Street Pre-Market Indications

RBC :
*ABERTIS: +1% Q3 net income in line, EBITDA small beat.
*AIRBUS: -2% Q3 profit falls 21% on A350 costs, rev miss, FY confirmed.
*ANTO: +1% Q3 update mixed, copper prod in line, 17 guidance in focus.
*BAYER: +1% Q3 core EPS beat, raises FY Core EPS goal.
*BMW/DAI: -1% read from GREAT WALL MOTORS (-10.5%) on weak Q3 numbers.
*BOSS: +1% CEO suggests movement away from luxury towards premium segment,
*B. POPULAR: -2% Il CONFIDENCIAL: unlikely to meet Q3 estimates.
*BUNZL: -3% Q3 organic growth flat v +1% expect.,
*CAPGEMINI: 0% Q3 sales -0.6%, confirming FY guidance.
*DLG: -3% weak read through from APPLE (-3%) after hours.
*GENEL ENERGY: -3% FY prod guided down on weak production.
*HEINEKEN: +1% Q3 slight beat on volumes, +2% v +1.6% consensus, FY expectation reit.
*IBEDROLA: 0% Q3 EBITDA and net income in line, FY financial targets confirmed.
*KERING: +3% best quarter results in 3 years, Gucci +17% & Saint Laurent +34%.
*KONECRANES: +1% Q3 order intake weak, net sales and profit ahead.
*LLOYDS: -1% Q3 mixed, capital ratio increased to 13.4%, provisions 15% worse.
*LOGITECH: +3% Q2 rev beat, FY guidance confirmed.
*METRO BANK: -2% Q3 numbers in line, achieved first quarterly profit ever, downgraded.
*PEUGEOT: 0% Q3 rev miss on Chinese-European weakness, FY guidance confirmed.
*RENAULT: -1% Q3 rev in line, FY guidance confirmed.
*RED ELECTRICA: -1% Q3 results in line, EBIT & net profit tad light.
*NORDEA: +2% Q3 pre-tax profit 7% above consensus, NII slight miss.
*NOVOZYMES: -4% Q3 revs 7% miss, gross profit light, downgrades growth targets.
*SANTANDER: +2% Q3 beat, NII ahead, revenues better.
*STOREBRAND: +2% Q3 mixed, improved solvency, operating profit miss, net profit beat.
*TELEFONICA: +1% Q3 rev & EBITDA beat, good subs growth & FY guidance reiterated.
*TELENOR: +2% Q3 revs in line, EBITDA beat, FY guidance reiterated.
*VINCI: 0% Q3 revs light, but confirms FY outlook.

CS:
Abertis M/P Revs €3.61bn vs cons 3.605bn, EBITDA €2.41bn vs cons €2.4bn
Aena -0.5% Q3 revenues 1.4% light, Q3 EBITDA 1.7% ahead
Antofagasta -4-5% Negative on Q4/FY16 & 17 Guidance
Airbus -1% Revenues 1% light, FCF 17% worse
Acerinox +1-2% EBITDA slightly ahead, guidance fine
Bayer R 3Q EBITDA ex items from cont. ops EU2.68B est EU2.53B
Bunzl M/P Trading update inline with market expectations
Capgemini -2% 3Q sales fall 0.6%, confirms 2016 outlook
Chr Hansen +1-2% EBIT inline, net slightly better, confirm FY guidance
Cramo -1-2% Q3 sales €184.8m, cons 186.4m, confirms FY guidance
Fred Olsen M/P Q3 Revs6% ahead, EBITDA $119m, cons 121m
Genel -3-5% 2016 revs now seen at bottom end of guidance
Gjensidige -1-2% 3Q pretax NOK1.52b cons NOK1.66b
Huhtamaki -1-2% Sales €719m vs cons €746m
Inmarsat UNCH CS REITERATE OUTPERFORM (TP 940p from 1060p)
Heineken +1% Organic consolidated beer volume beats estimates
Iberdrola +1-2% 9M ADJ. NET EU2.04B, est EU2B
Kering +5% Good numbers - Gucci LFL sales +17% (est +10)
Logitech +5-8% Q2 revenues 6% ahead, Non-GAAP EBIT 28% ahead
Lloyds -0.5% Bottom line a 3% miss, CET ratio 13.4% vs 13.3%
Meggitt +0.5% Awarded $48m contract to supply Health/Usage Monitoring Sys
Miners -1-2% Copper -0.40%, Brent -1.25%, Iron Ore +0.45%, China -0.24%
O2D +1% 3Q revs 1.88bn vs 1.82bn cons, reiterates forecast
Oils -1% API data announced a Crude build of 4.75M barrels
Nordea +1-2% Bottom line a 10% beat, CET1 at 17.9%, 50bps ahead of cons
Novozymes -3-5% Org growth disappointing, guidance adjusted to lower end
Nostrum +1% Production at 38.9 kb/d, cons 40 kb/d, guidance maintained
Peugeot +1% Sales broadly inline, lifts Europe
Red Elec M/P 3Q Net EU147.8m looks inline with consensus
Renault -1% Revenues 1.5% beat, confirmed FY forecasts
Saipem -3-5% Q3 numbers a beat, guidance weak and debt higher
Santander +1-2% CET1 up ~10bps from 10.36% to 10.47%, net income a 9% beat
SEB +1-2% Q3 rev E1.2b cons E1.18b, raises FY targets
Telenor +1% Revs in-line, EBITDA a beat by 3%
Unibail -1% 9m results inline, turnover up 5% YoY, reiterates forecast
Vinci M/P Q3 revs E10b (cons E10.2b) and confirms FY outlook
Wirecard M/P Q3 sales €268m vs cons €265m, EBITDA slightly ahead
XXL ASA -2% Q3 revs revs NOK2.08bn vs cons 2.19bn, keep FY guidance

Betaville : Walt Disney Co said to have rekindled interest in buying Twitter; pr

Walt Disney Co said to have rekindled interest in buying Twitter; price agreed
Tuesday, 25 October 2016, 11:03 pm
Some rather juicy RARE has landed in my lap.
It's a pretty simple tale: Walt Disney Co is said to be closing in on a multi-billion dollar takeover of micro blogging site Twitter after both companies agreed on takeout price late last week.
Now, those readers who have been following this situation will be well aware that the market has been pretty suspect about the prospect of a takeover of Twitter following a series of reports that claimed Walt Disney, Salesforce and Alphabet Inc (also known as Google) had all dropped out of the rather public auction process.
But well informed types have got in touch to let me know Walt Disney Co and Twitter are now thrashing out a deal after agreeing a price - thought to be in the high 20s per share - at the back end of last week.
I don't have much more detail from that apart from being told investment bankers at Guggenheim and JP Morgan are advising Walt Disney Co on the potential transaction (which the market knew about already asBloomberg reported this previously) and the logic behind the deal is that Walt Disney will be able shove its content down Twitter to a huge new online audience. Apparently, Walt Disney & Co has also been working on this transaction for the last six months.
Twitter is expected to release some figures this week, so perhaps the market will be given the details about this Walt Disney deal then?
To be clear, this story is RARE! For readers unfamiliar with the RARE concept I will define it below.
Market gossip that hasn't been tested through formal journalistic channels (public relations executives, bankers etc). The rumour might be total codswallop but then again there may be something in it, so it's worth airing on Betaville.
I have asked both Twitter and Walt Disney Co for an official comment. Twitter hasn't responded to my emailed request for comment and I'm still waiting for the Walt Disney & Co's spokesperson I have been communicating with to come up with a proper response. If and when both companies get in touch with an official comment I'm happy to add their comments to the story. I suspect, though, it will be a long wait...

>>> What to look at today - 26th of October 2016

Dow -0.30% S&P -0.38% Nasdaq -0.50% Russell -0.84%
US Market closed lower after mixed earnings and strnger dollar. Sterling plunged 1.3% against the dollar (1.2083) ahead of commentary from Bank of England Governor Mark Carney. However, remarks from Governor Carney proved to be rather innocuous and the currency pair narrowed its loss throughout the remainder of the session. The pound lost 0.5% against the dollar. WTI crude ended its session lower by 1.3% ($49.87/bbl; -$0.65), extending its weekly loss to 1.9%. Apple finished higher by 0.5% ahead of its quarterly report. Meanwhile, Corning fell 3.9% despite reporting above-consensus quarterly results. The high-beta chipmakers finished slightly ahead of the broader sector as the PHLX Semiconductor Index slipped 0.2%. Volume continue to be below average at 819mil shares. US After Hours AKAM +8%, JNPR +7%, VRTX +6%, PNRA +6%, IRBT +5% following earnings/guidance, TWTR +3.4% amid renewed M&A speculation... EW -13%, WFT -11%, CHRW -6%, P -6%, AAPL -3% following earnings/guidance. Apple beats estimates marginally on top and bottom line, but shares fall nearly 3% afterhours; Analysts note the first annual sales decline in 15 years as well as compression in margins (38.0% v 39.9% y/y) due to higher cost structure of newer iPhone products. On the earnings call, CFO Maestri noted currency headwinds remaining a headwind, while CEO Cook skirts around the impact of Samsung's Galaxy Note 7 scandal. Twitter shares spiked higher following a Betaville report that Disney interest in acquisition has returned; Betaville reported the two companies agreed on takeover price "in high $20s/shr" last week. Recall last week Disney confirmed reports that it heard a presentation from Twitter execs, but decided not to pursue acquisition due to valuation and investor pressure. Dec WTI crude oil contract fell to a 3-week low of $49.30/brl, down about 1%, following API inventories report showing the largest build since April; Sinopec and CNOOC shares fell about 2.5% in Hong Kong on lower oil; DOE inventories expected in early US session.

Nikkei +0.09% Hang Seng -0.70% CSI -0.27% Shanghai -0.40%

Eur$ 1.0887 CNH 6.7782 CNY 6.7701 JPY 104.31 GBP 1.2166 CHF 0.9949 RUB$62.2505 WTI$ 49.33 -1.26%

S&P -0.20% EuroStoxx -0.03% FTSE -0.17% Dax +0.03% SMI -0.18%

Macro :
- Fed’s Lockhart to Speak on Community Development in 5 Min.
- SoftBank CEO Sees Fund Likely Making Multibillion Dollar Buys:FT

Keep an eye on :
- AIR FP : Airbus 3Q Profit Misses Estimate; FY Forecast Confirmed
- ABI BB : Coca-Cola, Kirin Plan Tie-Up in Japan: Nikkei
- ABG SM : Abengoa Says Plan Has Support of More Than 75% of Creditors
- AAPL US : Apple FY1Q Rev. View Tops Est.; IPhone Sales Beat, ASP Misses
- AAPL US : Apple Falls After Gross Margin View, ASPs Trail Estimates
- T US : AT&T to Offer DirecTV Now Streaming Service for $35/Month
- BAYN GY : Bayer 3Q Ebitda Ex-Items Beats Ests.; Raises 2016 Core EPS Goal
- BMPS IM : Paschi Risk/Reward Still Unattractive After Plan, Berenberg Says
- CAP FP : Capgemini 3Q Sales Fall 0.6%; Confirms 2016 Outlook
- DBK GY : Deutsche Bank Said to Weigh Alternatives to Cash Bonus Payments
- EDF FP : EDF Barred From Halting Nuclear Power Sales to Rivals: Figaro
- EDF FP : EDF Says Confident French Nuclear Reactors Can Operate Safely
- ED US : Edison CEO Sees Utility Deals Being Done at Expensive Premiums
- EDP PL : EDP Agrees to Sell EU100m of Tariff Deficit in Portugal
- GAM SM : Gamesa Shareholders Approve Siemens Wind Holdco Merger
- HAV FP : Havas 3Q Organic Growth Damped by Slower North America, China
- BOSS GY : Hugo Boss to Pivot Away From Luxury Market: Handelsblatt
- KER FP : Kering 4Q Sales Via New Gucci Collections Seen >80%: Call, Kering 3Q Beat Driven by Gucci, YSL, Puma, Berenberg Says
- KRN GY : Krones 3Q Rev., Pretax Beats, Confirms 2016 Outlook
- MELE BB : Melexis 3Q Rev. Misses Est.; Oper. Profit Beats; Affirms Outlook
- MDM FP : Maisons du Monde Raises 2016 Forecast; 3Q Customer Sales Up 25%
- NDA SS : Nordea 3Q NII Slightly Below Estimates; Sees Flat NII in 4Q
- NOVOB DC : Novo Nordisk Applies to Add ‘Leader’ Data to Victoza Labeling
- UG FP : Peugeot 3Q Revenue Misses Estimate; Forecast Confirmed
- RED SM : Red Electrica 3Q Net EU147.8m, Matching Analysts’ Estimates
- RNO FP : Renault 3Q Revenue Beats Estimate; FY Forecast Confirmed
- RNO FP : Renault CFO Sees Higher Than Expected R&D Spending in 2H
- RNO FP : Renault 3Q Revenue Was Small Beat, No Surprises: Analysts
- SAN SM : Santander 3Q Net Beats Estimate; CET1 Fully Loaded 10.47%
- SGO FP : France Pare-Brise bought by Saint-Gobain - (Small)
- SPM IM : Saipem 3Q Adj. Operating Profit Beats; Keeps FY 2016 Guidance
- STL NO : Statoil Has ‘Clear Ambition’ to Compete in Carcara Brazil Round
- STB NO : Storebrand 3Q Profit Beats; Solvency Margin Drops Vs 2Q
- O2D GY : Telefonica Deutschland 3Q Revenue Tops, Net Loss Exceeds Ests.
- HO FP : Thales Wrote Hollande Opposing Transport Sale to Alstom: Monde
- UL FP : Unibail-Rodamco Reiterates 2016 Forecast, Sells 2 Buildings
- DG FP : Vinci 9-Month Rev. Drops on Contracting, Confirms FY Outlook
- VOD LN : Vodafone Said Set to Get Fined by U.K.’s Ofcom Tomorrow: Sky
- VOW3 GY : Volkswagen Recalls 129,230 Vehicles in Japan for Air Bags
- WDI GY : Wirecard 3Q Sales Rise 33%, Ebitda Up 35%; Confirms 2016 Targets

>>> Europe : Brokers Upgrades & Downgrades - 26th of October 2016

>>> Up
*Dassault Systemes Raised to Neutral at BNP, PT EU68
*DIAGEO RAISED TO BUY AT HSBC
*MAGNIT RAISED TO BUY AT HSBC
*Philips Raised to Buy at HSBC; Sees Encouraging Margin Process
*TIETO RAISED TO HOLD AT NORDEA

>>> Down
*Apple Cut to Hold at Stifel, PT $115
*J. Martins Cut to Hold at Berenberg, PT EU16.70
**MEDIASET CUT TO HOLD AT HSBC
*Neste Cut to Underperform at Macquarie, PT EU33.50

>>> PT Change


>>> Initiation


>>> Call

>>> After Hours Summary: AKAM +8%, JNPR +7%, VRTX +6%, PNRA +6%, IR


After Hours Summary: AKAM +8%, JNPR +7%, VRTX +6%, PNRA +6%, IRBT +5% following earnings/guidance, TWTR +3.4% amid renewed M&A speculation... EW -13%, WFT -11%, CHRW -6%, P -6%, AAPL -3% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: SCKT +24.6% (ticking higher), UIS +11.2%, AKAM +8.1%, JNPR +7.4%, VRTX +6% (also initiates two Phase 2 studies to evaluate the next-generation correctors VX-440 and VX-152 in triple combination regimens with tezacaftorand ivacaftor in people with cystic fibrosis), PNRA +5.8%, IRBT +4.9%, NCR +3.5%, OI +3.5%, RRC +3.1% (light volume), MRCY +2.9% (ticking higher), ESRX +1.6% (modestly higher but has pulled back since disclosing recent receipt of civil investigative demand from the United States Attorney's Office & subpoena duces tecum from the DOJ and United States Attorney's Office), MDR +1.5%, CYBE +1%, BXMT +0.7% (ticking higher)

Companies trading higher in after hours in reaction to news: OGXI +21.5% (announces 'positive' survival results from the final analysis of the Phase 2 Borealis-2 trial), LGCY +17.6% (executes a second lien term loan credit agreement with GSO Capital Partners LP to provide loans in an aggregate amount up to $300 million; adds additional director), TWTR +3.4% (M&A blog Betaville discusses vague rumors that Disney could again be looking at the company), FNBC +2.8% (First NBC Bank releases statement in response to 'unfounded assertions' and confirms it remains profitable), CIEN +2.6% (JNPR sympathy), OIS +0.8% (ticking higher; upgraded to Overweight from Equal Weight at Morgan Stanley)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: EW -13.2%, NUVA -11.4%, WFT -10.7%, CHRW -6.4%, P -5.7%, COLL -5.6% (sees Q3 revs of $400k vs $2.20 mln two analyst estimate; sees cash and cash equivalents of approximately $90.9 mln as of September 30; commences common stock offering), RCKY -4.3% (thinly traded), GLAD -3.3% (also announced plans to sell shares of its common stock in an underwritten public offering;), CMG -2.9% (also also approved the investment of up to an additional $100 million to repurchase shares of common stock), AAPL -2.8%, COF -1.9%

Companies trading lower in after hours in reaction to news: BLPH -18.9% (files for $24 mln mixed securities shelf offering), RTTR -16.2% (intends to offer for sale shares of its common stock in an underwritten public offering), TNXP -11.3% (intends to offer shares of its common stock and warrants to purchase common stock in an underwritten public offering pursuant to a shelf registration statement on Form S-3 previously filed), DPLO -5.5% (promotes Paul Urick to President effective November 1st), DPLO -5.5% (CFO Sean Whelan to step down, Paul Urick has been promoted to Diplomat's president), BLDP -2.3% (closes joint venture deal for local production of fuel cell stacks in China; expected to generate $170 mln minimum revenue over 5-years), LVS -0.3% (lower in after hours on Reuters report of Nevada gambling probe)

>>> Asian Update

Asia Mid-Session Market Update: Australia CPI tops consensus, boosting AUD and weighing on ASX200

***US Session Highlights***
- (US) OCT RICHMOND FED MANUFACTURING INDEX: -4 V -4E; new orders fell again but hiring and shipments moved into positive territory
- (US) OCT CONSUMER CONFIDENCE: 98.6 V 101.5E (retreats after back-to-back monthly gains)
- (UK) BOE Gov Carney: BOE does not target the exchange rate, but we are not indifferent to it
- Whirlpool, 3M, Polaris and Under Armour earnings paint a cautious US consumer picture

***US markets on close: Dow -0.3%, S&P500 -0.4%, Nasdaq -0.5%***
- Best Sector in S&P500: Utilities
- Worst Sector in S&P500: Healthcare
- Biggest gainers: LMT +7.4%, KEY +5.9%, VLO +4.9%, BHI +4.3%, FCX +3.6%
- Biggest losers: NLSN -16.9%, UA -13.2%, WAT -12.1%, SHW -10.9%, WHR -10.8%
- At the close: VIX 13.5 (+0.4pts); Treasuries: 2-yr 0.86% (+2bp), 10-yr 1.76% (-1bp), 30-yr 2.50% (-2bp)

***US movers afterhours***
- AKAM: Reports Q3 $0.68 v $0.61e, R$584M v $574Me; +8.4% afterhours
- UIS: Reports Q3 +$0.41 adj v -$0.06e, R$683.3M v $706Me; +8.4% afterhours
- JNPR: Reports Q3 $0.58 v $0.52e, R$1.29B v $1.25Be; +7.3% afterhours
- VRTX: Reports Q3 $0.16 v $0.19e, R$410M v $420Me; +6.2% afterhours
- PNRA: Reports Q3 $1.37 v $1.34e, R$684M v $682Me; +5.5% afterhours
- IRBT: Reports Q3 $0.70 v $0.42e, R$168.6M v $157Me; +5.0% afterhours
- OI: Reports Q3 $0.68 v $0.66e, R$1.71B v $1.73Be; +3.5% afterhours
- TWTR: Disney said to have rekindled interest - Betaville; +3.3% afterhours
- CB: Reports Q3 $2.88 v $2.64e, net premiums written $7.57B v $4.71B y/y; +2.4% afterhours
- MDR: Reports Q3 +$0.09 v -$0.06e (unclear if comp), R$558.5M v $603Me; +1.5% afterhours
- COF: Reports Q3 $2.03 adj v $1.94e, R$6.46B v $6.36B; -1.9% afterhours
- CMG: Reports Q3 $0.79 adj v $1.63e (unclear if comp), R$1.04B v $1.09Be; -2.0% afterhours
- AAPL: Reports Q4 $1.67 v $1.66e, R$46.9B v $46.8Be; -2.8% afterhours
- CHRW: Reports Q3 $0.90 v $0.97e, R$3.36B v $3.33Be; -6.5% afterhours
- P: Reports Q3 -$0.07 v -$0.06e, R$351.9M v $366Me; -7.2% afterhours
- WFT: Reports Q3 -$0.39 v -$0.24e, R$1.36B v $1.43Be; -10.7% afterhours
- EW: Reports Q3 $0.68 v $0.68e, R$739.4M v $748Me; -13.1% afterhours

***Asia Session Notable Observations, Speakers and Press***
- Apple beats estimates marginally on top and bottom line, but shares fall nearly 3% afterhours; Analysts note the first annual sales decline in 15 years as well as compression in margins (38.0% v 39.9% y/y) due to higher cost structure of newer iPhone products. On the earnings call, CFO Maestri noted currency headwinds remaining a headwind, while CEO Cook skirts around the impact of Samsung's Galaxy Note 7 scandal.
- AUD was the most volatile currency among the majors after Australia Q3 CPI beat consensus on the headline. Fruit/vegetables and electricity were among the highest gaining components of the basket, while the biggest declines were seen in automotive fuel (-2.9%) and telecommunication equipment (-2.5%). OIS swaps repriced the probability of a Nov rate cut to 6% after CPI release vs 15% going into the data, 3-year bond yield rose 3bps, and AUD/USD rose over 60pips above 0.77 handle.
- Twitter shares spiked higher following a Betaville report that Disney interest in acquisition has returned; Betaville reported the two companies agreed on takeover price "in high $20s/shr" last week. Recall last week Disney confirmed reports that it heard a presentation from Twitter execs, but decided not to pursue acquisition due to valuation and investor pressure.
- Dec WTI crude oil contract fell to a 3-week low of $49.30/brl, down about 1%, following API inventories report showing the largest build since April; Sinopec and CNOOC shares fell about 2.5% in Hong Kong on lower oil; DOE inventories expected in early US session.

***Asia Key economic data:***
- (AU) AUSTRALIA Q3 CONSUMER PRICES (CPI) Q/Q: 0.7% (matches 5-quarter high) V 0.5%E; Y/Y: 1.3% V 1.1%E; TRIMMED MEAN Q/Q: 0.4% V 0.4%E ; Y/Y: 1.7% V 1.7%E
- (CN) China Oct Westpac Consumer Confidence Index: 117.1 v 115.2 prior
- (JP) JAPAN SEPT PPI SERVICES Y/Y: 0.3% V 0.2%E
- (KR) South Korea Oct Consumer Confidence: 101.9 v 101.7 prior; 10-month high

***Asian Equity Markets (23:00ET)***
- Nikkei -0.2%, Hang Seng -0.6%, Shanghai Composite -0.4%, ASX200 -1.7%, Kospi -1.3%

***FX ranges/Commodities/Futures/Fixed Income (23:00ET):***
- EUR 1.0875-1.0893; JPY 104.00-104.38; AUD 0.7625-0.7710; NZD 0.7145-0.7175
- Dec Gold +0.2% at 1,276/oz; Dec Crude Oil -1.3% at $49.32/brl; Copper -0.2% at $2.13/lb
- (US) Weekly API Oil Inventories: Crude: +4.8M v -3.8M prior; Largest build since April
- GLD: SPDR Gold Trust ETF daily holdings rise 3.2 tonnes to 956.8 tonnes
- Equity Futures: S&P e-mini -0.2%, Dax -0.2%, FTSE100 -0.2%
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.7705 V 6.7744 PRIOR; first weaker Yuan setting in 4 days
- (CN) China MOF sells 7-yr bond, avg yield 2.62%; Sells 3-yr bonds at 2.29%
- (CN) PBOC to inject CNY105B in 7-day reverse repos, CNY75B in 14-day reverse repos, and CNY30B in 28-day reverse repos

***Asia movers***
- Consumer discretionary: Belle International 1880.HK -4.1% (JPMorgan cuts rate); Kirin Holdings Co 2503.JP +1.6% (confirms in tie-up talks with Coca Cola); Komeri 8218.JP +0.8% (H1 result); Koito Manufacturing Co 7276.JP -2.0% (H1 result)
- Financials: WesFarmers WES.AU -5.1% (Q1 result); Ardent Leisure Group AAD.AU -12.3% (To close Thunder River Rapids Dreamworld ride after reports of 4 people killed at the theme park; Cut at Citi and Morgans)
- Industrials: China Communications Construction 1800.HK -1.9% (YTD contracts report) ; Great Wall Motor 2333.HK -11.8% (9-month result); GUD Holdings GUD.AU -3.5% (Citi cuts to neutral)
- Technology: Canon Electronics 7739.JP -2.3% (cuts guidance)
- Materials: Independence Group IGO.AU +2.5% (Q1 result); Jiangxi Copper Company 358.HK +0.6% (Q3 result); Zijin Mining 2899.HK +2.1% (Q3 result); Shandong Chenming Paper Holding 1812.HK -4.4% (Q3 result); Beadell Resources BDR.AU +5.4% (Q3 result); LG Hausys 108670.KR +1.0% (Shinhan forecasts its earnings to rebound); Saracen Mineral SAR.AU +4.2%, Evolution Mining EVN.AU +1.2% (gold Rises)
- Energy: Toho Gas Co 9533.JP +0.4% (raises guidance); CNOOC 883.HK -2.6%, PetroChina 857.HK -1.6%, Sinopec 386.HK -2.4% (oil declines)
- Healthcare: Guangzhou Baiyunshan Pharmaceutical Holdings Co 874.HK -1.0% (Q3 result); Ramsay Health Care RHC.AU +1.2% (reaffirms forecast)
- Telecom: NTT DoCoMo 9437.JP +2.3% (H1 result speculation)
- Utilities: Huaneng Power International 902.HK +0.6% (Q3 result); Huadian Power International Corp 1071.HK -0.6% (9-month result)

FT : Brussels raises heat on Italy over 2017 budget

Brussels raises heat on Italy over 2017 budget
Commission gives Rome deadline to explain softening of deficit targets

Tension between Brussels and Italy over the country’s 2017 budget escalated on Tuesday after the European Commission imposed a 48-hour deadline on Rome to explain why it was breaking previous fiscal agreements.

Matteo Renzi, Italy’s prime minister, in effect, dared the commission last week to challenge him over a budget proposal that scraps the deficit reduction targets to which the country had committed itself this year.
While his planned budget would keep the deficit below the EU’s headline target of 3 per cent of gross domestic product, it breaks other fiscal guidelines and would require Brussels to grant an unprecedented amount of flexibility in how it applies eurozone fiscal rules.
The plans, announced by Mr Renzi 10 days ago, have created a political headache for the commission, which is responsible for reviewing the draft budget and has until the end of this week to decide whether to adopt a “negative opinion”.
Such a move would be unprecedented, and would threaten a severe rift with Rome at a time when Mr Renzi is facing a challenge at home, in the form of a surge in popularity for the anti-establishment Five Star Movement, and is weeks away from a crucial referendum on constitutional reform.
In a letter to Pier Carlo Padoan, Italy’s finance minister, sent on Tuesday, the commission requests “explanations for the revision of the targets and the substantial gap emerging with respect to the commitments made last spring”.

“Italy has benefited from significant flexibility under the rules of the Stability and Growth Pact both in 2015 and 2016,” the commission points out in the letter, signed by Valdis Dombrovskis, a European Commission vice-president, and Pierre Moscovici, the commissioner for economic affairs.
That flexibility “was granted subject to Italy … presenting credible plans to resume the adjustment as of 2017”.
Mr Renzi has insisted that the change of plans was caused, at least in part, by events beyond his control — notably August’s devastating earthquake in central Italy and the refugee crisis, both of which have placed a strain on public finances.
The commission is concerned that neither of these factors fully explains the sizeable gap between the 1.8 per cent deficit the country was targeting earlier this year and the 2.3 per cent shortfall it is aiming for now.
The letter is one of seven the commission sent to national capitals regarding their draft budgets, although the others address more minor issues — such as how to deal with the fact some countries were without fully functioning governments when their plans were submitted.
Given the deviations in Italy’s budget, few doubted that the commission would request further talks — a standard procedural step in such cases. Escalating the matter further, and adopting a negative opinion, would, however, be an unprecedented step likely to create a political storm.
Rome could ignore the opinion but it would provide an early signal of fiercer clashes to come. EU institutions have only a limited role in judging budget plans but they have far tougher powers to sanction past lapses in fiscal prudence, including the ability to fine national governments, although in practice this has never been used.
Despite calling on Italy to justify why it is falling short of agreed targets, Mr Dombrovskis and Mr Moscovici hint at some room for manoeuvre in their letter to Mr Padoan, noting that EU rules are flexible when it comes to the kinds of unforeseeable costs that Italy has incurred.
“The commission has acknowledged the exceptional nature of such expenditures in the past,” they say, adding that, nevertheless, Brussels “would need clarifications” on the amounts concerned.
“We would welcome your views by Thursday 27th October, close of business, to allow the commission to take these into account in its further analysis.”

WSJ : Apple Profit and Revenue Slide as it Copes With Slumping iPhone Sales

Apple Profit and Revenue Slide as it Copes With Slumping iPhone Sales
Full-year top and bottom lines decline for the first time since 2001, but the tech giant’s forecast for current-quarter revenue is bullish

Apple Inc. posted its third consecutive decline in quarterly revenue and profit Tuesday, as the company searches for a way to offset falling sales of its flagship iPhone.
The results also marked Apple’s first decline in annual revenue and profit since 2001.
For the fiscal fourth quarter, ended Sept. 24, Apple said net income fell 19% to $9 billion, or $1.67 a share, from $11.1 billion, or $1.96 a share, in the same period a year earlier. Analysts polled by Thomson Reuters had expected earnings of $1.65 per share.

Revenue fell 9%, to $46.9 billion, mostly ahead of the launch of the iPhone 7, which went on sale a week before the end of the quarter.
Still, Apple remains the most profitable U.S. company, with net income of $45.7 billion for the fiscal year it just ended.
Tim Cook, Apple’s chief executive, said improvements in the company’s services business and the introduction of its flagship iPhone in particular were improving the company’s outlook for the coming quarter.
“The customer response has really been off the charts,” he said “We couldn’t be more happy with how it’s been received.”
Apple issued a bullish forecast for the current quarter, which includes both the holiday-shopping season and sales of its new phone. The company said it expects revenue of $76 billion to $78 billion in the quarter, which would be an increase from $75.9 billion in the same period a year earlier. Before Apple’s announcement, analysts had been expecting revenue in the current quarter of $74.9 billion, according to FactSet.

Apple also projected gross margin, a closely watched measure of profitability, of 38% to 38.5%, even to slightly up from 38% in the just-completed quarter.
Neil Cybart, an independent analyst who follows Apple, said the revenue projection for the current quarter implies that Apple expects iPhone unit sales to increase more than 5% from a year earlier, when the iPhone 6S was its newest model.
The iPhone accounted for 63% of Apple’s revenue in the just-completed fiscal year, but growth in the smartphone market has slowed recently and consumer buying habits are changing. In the fourth quarter, Apple said it sold 45.5 million iPhones, 2.5 million fewer than a year earlier.
The company reported holding $237.6 billion in cash and investments, up from $231.5 billion three months earlier.
Apple is running out of large untapped markets where it could reproduce its breakneck success in China in recent years. Sales in greater China, which includes Hong Kong and Taiwan, declined 30% to $8.8 billion in the most-recent quarter. In the same quarter a year earlier, Apple sales to the region grew 99%.

UBS Securities LLC says 80% to 90% of China’s potential high-end smartphone buyers already have a phone.
Mr. Cook hopes India, where iPhone sales grew by more than 50% during the most recent year, will prove to be another giant market.
“We still believe we’re just kind of scratching the surface there,” he said. Apple includes India in its Asia Pacific region, which reported $2.7 billion in sales, roughly even with a year earlier.
Apple’s shares fell 1.5% in after-hours trading following the release. Apple shares are down 0.7% over the past 12 months through Tuesday’s close, but have risen more than 20% since its last financial results were reported in July, as expectations rose for sales of the new iPhone and rival Samsung Electronics Co. recalled its Galaxy Note 7 smartphones following reports of battery fires.
Sales of the company’s Macintosh computers declined 17% to $5.7 billion. Apple is expected to update the Mac line on Thursday.