>>> Conforama and Casino Groups to create a joint central purchasing agency

Conforama and Casino Groups to create a joint central purchasing agency

The Conforama and Casino Groups announced to create a joint central purchasing agency for non-food products with operations set to launch for the 2017 purchasing negotiations.

Named “Mano”, the agency will aim to optimise for both groups purchasing in France from the main international suppliers of household appliances (both white and brown goods).

It will thus be positioned as the leader or co-leader in its areas of activity and enhance the competitiveness of the Conforama, Cdiscount, Géant, Monoprix and Casino Supermarket banners.

The Conforama and Casino Groups will each continue to independently operate their sales outlets and e-commerce sites in line with their banners’ identities and their respective sales strategies.

This development was also reported in daily Le Figaro, which said that the JV will be purchasing goods for about EUR 1.3bn in 2017. The report noted that under the last legislation, any alliance has to be notified with the Competition Authority if the purchasing figure amounts to EUR 3bn annually at least.

>>> Abertis targets Goldman Sachs' EUR 2bn Mexican motorway business; interest i

Abertis targets Goldman Sachs' EUR 2bn Mexican motorway business; interest in OHL Mexico sidelined

Abertis is looking to acquire Red de Carreteras de Occidente's (RCO), the Mexican motorway concessions company that Goldman Sachs has recently put up for sale, El Confidencial reported. The company is valued at about EUR 2bn, the Spanish-language item said, citing official sources.

According to the report, Abertis is considered one of the most likely candidates to acquire the concessions business.

Abertis is keen to enter the Mexico market and has previously participated in talks to acquire Obrascon Huarte Lain’s (OHL) 56% stake in its Mexican concessions division OHL Mexico, the report said.

According to the report, a bid for RCO would signal Abertis has moved away from its former partner OHL:

>>> What to look at today - 20th of September 2016

Dow-0.02% S&P+0.00% Nasdaq -0.18% Russell +0.63%
US Market start a major week on flat note. Oil has been a catalyst and rebound today helped equities to outperform in the morning. Four sectors ended in the green with industrials (+0.3%), financials (+0.5%), and utilities (+1.0%) leading. Conversely, technology (-0.2%), health care (-0.4%), and telecom services (-0.7%) underperformed. The implied probability of a rate hike at the September meeting sits at 12.0% while the odds of a rate hike at the December meeting registers at 55.0%. On the M&A front, (ERI 13.84,- 0.41) agreed to acquire the name for $23.00 per share or approximately $1.7 billion. Volume were below average wih 760mil shares. US After Hours NAII +23% following earnings, WINT +31% on FDA Fast Track Designation news.... ASNA -23.8%, HNI -7.8% on earnings/guidance. Asian Stocks Near One-Week High Before BOJ, PM Abe: Govt to leave monetary policy to BOJ; important for policy to fight deflation, Nikkei speculates BOJ will likely adjust the policy framework at its meeting this week; may be forced to abandon its 2-year target timeframe and switch to a longer view; Negative rates are expected to be the centerpiece of BOJ future policy expansion, but because of their negative impact on financial sector, the BOJ will need to communicate consideration of side effects. One option is communicating it will prevent downturns in superlong interest rates. Hong Kong Interbank offered Rate is trading back on lower level after trading above 20 levels yest ({HICNHON Index }). Eldorado Resorts (ISLE 22.04, +5.11) rallied 30.2% after Isle of Capri (BLOX 26.35, +3.52) spiked 15.4% after announcing that Vista Equity Partners will acquire the company for $26.50 per share or approximately $1.6 billion. Separately, Infoblox

Nikkei -0.34% Hang Seng -0.14% CSI -0.19% Shanghai -0.13%

Eur$ 1.1173 CNH 6.6725 CNY 6.6694 JPY 101.84 GBP 1.3038 CHF 0.9804 RUB 64.6818 WTI$43.62 (-0.55%)

S&P +0.23% EuroStoxx -0.17% Dax -0.07% SMI -0.16$ FTSE -0.02%

Macro :
- Gundlach Says Fed Won’t Raise Interest Rates This Week: Reuters
- Yuan Interbank Rate Surges in Hong Kong in Sign of Intervention

Keep an eye on :
- ABBN VX : ABB Upcoming CMD More of a Progress Report, Not Conclusion: Citi
- AIR FP : Iran to Cut Airbus Plane Order to 112 From 118, Reuters Says
- AIR FP : Airbus Plans Restructuring to Strengthen HQ vs Divisions: Echos
- ALO FP : Alstom to Supply Hydrogen-Powered Trains From 2017, Welt Says
- AMZN US : Amazon German Sales Rise to EU7.8b in 2015 From EU6.6b: HB
- ATL IM : Atlantia Buys 21.3% of Save; Total Consideration About EU174m
- BO DC : Bang & Olufsen Chairman Rules Out Sale of Company, Borsen Says
- BAYN GY : Bayer Raises Forecast for Recently Launched Pharma Products
- BAYN GY : Bayer Mulls Dropping Monsanto Name as Cure for Brand Headache
- BAYN GY : Bayer Sees Higher Crop Science Margins After Monsanto Deal
- CHK US : Icahn Cuts Stake in Chesapeake Energy, No Longer Top Holder
- EDF FP : France’s EDF to Invest $2b in India Renewable Projects: E. Times
- PRS SM : Prisa Said to Seek Buyer for 75% Santillana Stake: Confidencial
- SIE GY : Siemens Takes ‘Very Cautious Approach to 2017,’ Kaeser Says: WSJ
- GLE FP : Societe Generale Names Sadia Ricke as U.K. Country Head
- UBSG VX : Banque Leonardo in JV Talks With UBS France, Echos Says
- VIRP FP : Virbac Returns to Profit in 1H, Revises FY Outlook
- VOW3 GY : Renschler Says VW Expects Savings From Navistar Purchase: HB
- MF FP : Wendel Agrees to Buy Tsebo for Enterprise Value of About EU331m

>>> Europe : Brokers Upgrades & Downgrades - 20th of September 2

>>> Up
*ADVANCED MICRO DEVICES RAISED TO MARKET PERFORM AT BERNSTEIN
*ANGLO AMERICAN RAISED TO NEUTRAL VS UNDERPERFORM AT MACQUARIE
*BHP RAISED TO OUTPERFORM FROM NEUTRAL AT MACQUARIE
*COFACE RAISED TO BUY AT KEPLER CHEUVREUX
*KIRBY RAISED TO OUTPERFORM AT RBC
*LEG IMMOBILIEN RAISED TO BUY VS HOLD AT SOCIETE GENERALE
*NESTLE RAISED TO OUTPERFORM AT MAINFIRST
*NYRSTAR RAISED TO NEUTRAL VS UNDERPERFORM AT MACQUARIE
*SEGRO RAISED TO BUY VS NEUTRAL AT UBS
*SOUTH32 RAISED TO OUTPERFORM VS UNDERPERFORM AT MACQUARIE
*STOREBRAND RAISED TO BUY FROM HOLD AT SEB
*UNICREDIT RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA
*VAT RAISED TO BUY VS NEUTRAL AT UBS
*VOESTALPINE RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*VIDRALA RAISED TO BUY AT SANTANDER

>>> Dow
*ALFA LAVAL CUT TO UNDERPERFORM AT CREDIT SUISSE
*BARRATT DEVELOPMENTS CUT TO NEUTRAL VS BUY AT UBS
*BOVIS HOMES CUT TO NEUTRAL VS BUY AT UBS
*HEIDELBERGCEMENT CUT TO HOLD VS BUY AT DEUTSCHE BANK
*METSO CUT TO NEUTRAL AT CREDIT SUISSE
*PETRA DIAMONDS CUT TO NEUTRAL VS BUY AT CITI
*SANDVIK CUT TO UNDERPERFORM AT CREDIT SUISSE
*SUEDZUCKER CUT TO HOLD VS BUY AT BANKHAUS LAMPE
*UNILEVER CUT TO NEUTRAL VS OUTPERFORM AT MAINFIRST
*ZURICH INSURANCE CUT TO SELL VS HOLD AT BANKHAUS LAMPE

>>> PT Change


>>> Initiation
*ABERTIS RATED NEW BUY AT CITI, PT EU17.2
*ASOS RATED NEW OUTPERFORM AT MACQUARIE; PT 5,700P
*CRODA RATED NEW OUTPERFORM AT BERNSTEIN
*DSM RATED NEW UNDERPERFORM AT BERNSTEIN, PT EU51
*IMI RATED NEW NEUTRAL AT CREDIT SUISSE
*NOVARTIS RATED NEW BUY AT CHARDAN CAPITAL MARKETS
*PLY GEM HOLDINGS RATED NEW OUTPERFORM AT RBC
*ROTORK RATED NEW OUTPERFORM AT CREDIT SUISSE
*WEIR RATED NEW OUTPERFORM AT CREDIT SUISSE
*ZALANDO RATED NEW OUTPERFORM AT MACQUARIE; PT EU50

>>> Call

>>> US After Hours Summary: NAII +23% following earnings, WINT +31

After Hours Summary: NAII +23% following earnings, WINT +31% on FDA Fast Track Designation news.... ASNA -23.8%, HNI -7.8% on earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: NAII +23% (thinly traded)

Companies trading higher in after hours in reaction to news: WINT +30.9% (announces FDA Fast Track Designation for AEROSURF), PIR +6.8% (Alden Global discloses 9.5% active stake, details talks with management), HDP +5.3% (Hortonworks & IBM (IBM) announce the planned availability of Hortonworks Data Platform for IBM Power Systems enabling POWER8 clients), AMPH +5% (to join S&P SmallCap 600), TXMD +4.9% (announces that the FDA has accepted the NDA for Yuvvexy; PDUFA of May 7, 2017 established), SRPT +3.2% (following 75% surge higher on FDA accelerated approval of EXONDYS 51 (eteplirsen) injection; plans to file MAA in Europe for eteplirsen by the end of the year), CRUS +0.9% (to join the S&P MidCap 400), RCL +0.7% (increases quarterly dividend), ABX +0.4% (Royal Gold to acquire 3.75% Net Value Royalty covering 'significant area' of Barrick Gold Cortez gold mine, including Crossroads deposit from a private party seller for $70 mln)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ASNA -23.8%, HNI -7.8% (sees Q3 and FY EPS/revs below previous outlook)

Companies trading lower in after hours in reaction to news: SEAS -8.7% (SeaWorld Entertainment cuts dividend by more than 50% to $0.10/share, suspends dividends thereafter; will opportunistically repurchase shares in the open market during the remainder of 2016), ECA -5.4% (commences 107 mln common stock offering), OCLR -4.9% (announces a 13 mln share underwritten public offering of common stock), AQXP -4.5% (announces an underwritten public offering of common stock for an undisclosed amount), CHK -3.4% (Carl Icahn lowers active stake), TSE -0.9% (Trinseo announces secondary offering of 10,669,567 ordinary shares by selling shareholder)

>>> Asian Update

Asia Mid-Session Market Update: Minutes show RBA is comfortable with policy stance; BOJ begins 2-day meeting as speculation of easier and more flexible settings swirl

***US markets on close: Dow flat, S&P500 flat, Nasdaq -0.2%***
- Best Sector in S&P500: Utilities
- Worst Sector in S&P500: Healthcare
- Biggest gainers: KORS +3.7%, RHT +2.9%, OKE +2.8%, COH +2.6%, GM +2.4%
- Biggest losers: CHK -7.4%, WYNN -4.3%, SRCL -4.0%, ENDP -3.8%, MU -3.0%

***VIX 15.53 (+0.16pts); Treasuries: 2-yr 0.78% (flat), 10-yr 1.70% (-1bp), 30-yr 2.44% (-1bp)***

***US movers afterhours***
- CYH: Apollo Global Management said to be interested in acquiring assets of Community Health Systems - financial press; +3.7% afterhours
- STLD: Guides Q3 $0.63-0.67 v $0.70e; -2.4% afterhours
- HNI: Cuts Q3 $0.74-0.79 v $0.95e (prior $0.90-0.95), cuts FY16 $2.50-2.70 v $2.87e (prior $2.80-2.95); -7.8% afterhours
- ASNA: Reports Q4 $0.08 v $0.17e, R$1.81B v $1.78Be; -23.0% afterhours
- SEAS: Reduces dividend to $0.10 from $0.21; To suspend subsequent dividend payments; -6.2% afterhours

***After extended session***
- GE: Announces over $800M in digital industrial power orders for Asia-Pacific region
- FWRD: Lowers Q3 $0.48-0.52 v $0.63e (prior $0.61-0.65); Rev at -2% to +2% y/y (implies $242-252M v $252Me, prior +1-5%)

***Equity Futures (23:30ET): S&P e-mini +0.1%, Dax +0.1%, FTSE100 +0.1%***

***FX / Commodities ranges (23:30ET): ***
- EUR 1.1160-1.1180; JPY 101.80-102.05; AUD 0.7530-0.7555, NZD 0.7290-0.7320
- Gold +0.1% at 1319; Oil -0.6% at $43.62 / brl; Copper -0.2% $2.15/lb

**** Asian Equity Markets (23:30ET) ****
- Nikkei +0.1%, Hang Seng -0.2%, ASX -0.2%, Shanghai -0.1%, Kospi flat

***Key economic data: ***
- (AU) AUSTRALIA Q2 HOUSE PRICE INDEX Q/Q: 2.0% V 2.8%E; Y/Y: 4.1% (3-year low) V 5.1%E

***Speakers / Press / Key Themes***
China:
- China Commerce Ministry (MOFCOM) spokesperson: China trade continues stabilizing and improving
- PBOC SETS YUAN MID POINT AT 6.6595 V 6.6786 PRIOR; strengthens by most in 2 weeks
- China Premier Li: Yuan exchange rate to stay basically stable at a reasonable and balanced level; no basis for sustained devaluation of yuan - Chinese press
- Goldman Sachs: China YTD actual FX outflows are estimated at $420B v PBoC data of $190B

Japan:
- Japan PM Abe: Govt to leave monetary policy to BOJ; important for policy to fight deflation
- Nikkei speculates BOJ will likely adjust the policy framework at its meeting this week; may be forced to abandon its 2-year target timeframe and switch to a longer view; Negative rates are expected to be the centerpiece of BOJ future policy expansion, but because of their negative impact on financial sector, the BOJ will need to communicate consideration of side effects. One option is communicating it will prevent downturns in superlong interest rates.

Australia:
- RBA Sept Meeting Minutes: Data indicates growth near potential; Policy stance consistent with meeting CPI target over time; Lower AUD continues to support activity in traded sector; Demand uncertainty still weighing on non-mining investment; Conditions in established housing market had generally eased; China growth has eased a little further

Asia movers:
- Financials: Country Garden Holdings Co 2007.HK +1.4% (YTD result, share buyback); China Construction Bank 939.HK +0.3% (plans to sell first bad MBS)
- Technology: Tokyo Electron 8035.JP +2.5%, Sumco 3436.JP +3.4% (Intel raised 3Q sales outlook)
- Materials: Tokyo Steel Mfg Co 5423.JP -8.4% (cuts Oct steel prices); St Barbara SBM.AU +1.7% (Macquarie raised to Outperform); Western Areas WSA.AU +1.4% (nickel prices rose overnight); Galaxy Resources GXY.AU -8.4% (update on Mt Cattlin); China Sandi Holdings 910.HK +32.7% (conversion of convertible securities); New Hope Corporation NHC.AU -1.6% (FY16 result)
- Telecom: China Unicom 762.HK -1.7% (Aug result); China Mobile 941.HK -0.4% (Aug result); TPG Telecom TPM.AU -19.1% (FY16 result)

>>> DOW/DD spoke to DOW

DOW/DD spoke to DOW IR, said still optimistic will close 2016 , they have been working with the EC and hoping clock will restart there very soon. Was asking about dividends, we were getting some questions about coordination earlier today, DOW said that DD will  have until mid-nov to declare their 4Q div so if not closed by then or an indication that will be able to close by year end each company will declare on their own in accordance with past practice (guess similar to how HOT/MAR did it) and then coordinate 1Q17 divs.

 

 

DISCLAIMER This information represents neither an offer to buy or sell any security nor, because it does not take into account the differing needs of individual clients, investment advice. Those seeking investment advice specific to their financial profiles and goals should contact their Oscar Gruss & Son Incorporated sales representative. Oscar Gruss & Son Incorporated believes this information to be reliable, but no representation is made as to accuracy or completeness. This information does not analyze every material fact concerning a company, industry, or security. Oscar Gruss & Son Incorporated assumes that this information will be read in conjunction with other publicly available data. Matters discussed here are subject to change without notice. There can be no assurance that reliance on the information contained here will produce profitable results. A security denominated in a foreign currency is subject to fluctuations in currency exchange rates, which may have an adverse effect on the value of the security upon the conversion into local currency of dividends, interest, or sales proceeds. The value of securities and depositary receipts of foreign issuers that are denominated in United States dollars are also influenced by fluctuations in currency exchange rates. © 2016 Oscar Gruss & Son Incorporated. All rights reserved.

>>> US Close Dow-0.02% S&P+0.00% Nasdaq -0.18% Russell +0.63%

Closing Market Summary: Indices Flat as Participants Eye Central Bank Meetings

The stock market began the week on a flat note as participants displayed a lack of conviction ahead of key policy statements from the Federal Reserve and Bank of Japan. The Nasdaq Composite (-0.2%) settled behind both the Dow Jones Industrial Average (UNCH) and the S&P 500 (UNCH). 

The major averages advanced at the start of the session as a rebound in crude oil futures and a positive bias in global markets facilitated a higher start to the trading week. Oil was in focus as renewed speculation surrounding a production cap agreement boosted the energy component. Venezuelan President Nicolas Maduro made headlines over the weekend, stating that oil producers are close to reaching a deal to stabilize oil markets. However, the comments were taken with a grain of salt following contradictory reports from OPEC Secretary General Mohammed Barkindo. The oil cartel is scheduled to meet on September 26-28.

The benchmark index notched a session high in the first half hour of trade, testing but failing to clear technical resistance near the 2150/2151 price level. The broader market walked back early gains through the session as the heavily-weighted technology (-0.2%) and health care (-0.4%) sectors came under pressure. The broader market notched a session low shortly after midday, but managed to settle above that level. Four sectors ended in the green with industrials (+0.3%), financials (+0.5%), and utilities (+1.0%) leading. Conversely, technology (-0.2%), health care (-0.4%), and telecom services (-0.7%) underperformed. 

The financial space (+0.5%) finished ahead of the benchmark index, rebounding from recent losses. Wells Fargo (WFC 46.01, +0.58) jumped 1.3% after Robert W. Baird upgraded the stock to Outperform from Neutral. The broader sector displayed relative strength as participants assessed the rate hike picture in coming months. The implied probability of a rate hike at the September meeting sits at 12.0% while the odds of a rate hike at the December meeting registers at 55.0%. Rate hike expectations increased last week following some firming inflation data. 

In the energy sector (-0.1%), refining names outperformed amid reports of gasoline shortages on the East coast of the United States. Phillips 66 (PSX 80.35, +1.26) and Tesoro (TSO 83.54, +1.56) ended higher by 1.6% and 1.9%, respectively. Separately, Dow component Chevron (CVX 98.04, +0.20) finished ahead of the price-weighted index. For its part, crude oil settled higher by 0.6% ($43.90/bbl; +$0.28).

Homebuilders outperformed in the consumer discretionary space (-0.1%), evidenced by the 0.9% gain in the iShares Dow Jones US Home Construction ETF (ITB 27.52, +0.25). The sub-group gained following a stronger-than-expected reading of the NAHB Housing Market Index for September. Lennar (LEN 45.09, +0.75) jumped 1.7% ahead of tomorrow morning's earnings report. Separately, General Motors (GM 31.72, +0.75) rallied 2.4% after being upgraded to "Overweight" at Morgan Stanley.

In the health care space (-0.4%), biotechnology gained after Sarepta Therapeutics (SRPT 48.94, +20.79) received conditional approval from the FDA for the company's muscular dystrophy treatment. On the flipside, Merck (MRK 61.33, -0.95) ended lower by 1.5%. 

On the M&A front, Infoblox (BLOX 26.35, +3.52) spiked 15.4% after announcing that Vista Equity Partners will acquire the company for $26.50 per share or approximately $1.6 billion. Separately, Isle of Capri (ISLE 22.04, +5.11) rallied 30.2% after Eldorado Resorts (ERI 13.84,- 0.41) agreed to acquire the name for $23.00 per share or approximately $1.7 billion.

Treasuries ended on a lower note with yields rising through the curve. The yield on the 2-yr note rose one basis point to 0.77% while the yield on the 10-yr note also increased one basis point (1.70%). 

Today's participation was below the recent average as fewer than 760 million shares changed hands on the NYSE floor.

Today's economic data was limited to the NAHB Housing Market Index for September: 

  • The NAHB Housing Market Index for September rose to 65 from a revised 59 in August (from 60) while the Briefing.com consensus expected the reading to come in at 59.

Tomorrow's economic data will include Housing Starts (consensus 1186k) and Building Permits (consensus 1160k) for August, which will each be released at 8:30 ET. 

  • Russell 2000: +8.5% YTD
  • S&P 500: +4.7% YTD
  • Nasdaq: +4.6% YTD
  • Dow Jones: +4.0% YTD