>>> US Gapping Down

Gapping down
In reaction to disappointing earnings/guidance:
  • GCO -18.6%, SCVL -8.7%, CRM -6.6%, FIVE -5.3%, CPB -4.7%, MEI -3.2%, COST -2.2%, XCRA -1.7%
  • BOX -1.4%, FWP -1.3%, CTRP -0.7%, QUNR -0.7%, JOY -0.7%
Other news:
  • AMD -4.9% (Advanced Micro amends its Wafer Supply Agreement with Globalfoundries for the period from Jan. 1, 2016 to Dec. 31, 2020)
  • FRO -4.7% (continued weakness following yesterday's earnings)
  • NL -3.7% (following afternoon strength - ended the day up 40%)
Analyst comments:
  • BKU -1% (downgraded to Underperform at Hovde Group)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: OXM +10.2%, OLLI +9.2%, PI +7.9%, NTEC +5.1%, SMTC +1.9%, APOP+1.8%, GEF +1.5%

M&A news:
  • CYNA +114.6% (Cynapsus Therapeutics to be acquired by Sunovion Pharmaceuticals for $40.50/share in cash, or approximately $624 mln )
  • ARMH +1.5% (progress in merger with Softbank, High Court of Justice in England and Wales has today sanctioned the scheme of arrangement)
  • TWTR +1.4% (continued strength after M&A speculation began yesterday)
Select EU financial related names showing strength: LYG +4%, DB +3.7%, HSBC +2.9%, CS +2.7%, BBVA +2.6%, ING+2.2%, PUK +2.1%, SAN +2%, RBS +1.9%

Select metals/mining stocks trading higher: RIO +1.8%, BBL +1.4%, MT +1.4%, DRD +0.8%, BHP +0.6%

Select Macau gaming names showing strength after Macau gaming revs released overnight: MPEL +4.9%, WYNN+4.7%, MGM +2.8%, LVS +2.6%, .

Other news:
  • VKTX +11.9% (announces the presentation of data from a Phase 1 trial of VK5211 at the 5th Fragility Fracture Network Global Congress 2016 )
  • CLNE +9.2% (announces multiple contract awards, including a multi-year contract for Washington Metropolitan Area Transit Authority)
  • SPU +6.6% (following 40%+ move higher), ARRY +5% (FDA has accepted its New Drug Applicatio for binimetinib)
  • CHTR +4.3% (to join the S&P 500), NCLH +4.1% (Pres/CEO disclosed purchase of 83498 shares, worth total of more than $3 mln )
  • ZFGN +3.7% (CEO/Pres disclosed purchase of 10000 shares, worth total of $30K)
  • NVCR +3.3% (announces that data showing Tumor Treating Fields in combination with paclitaxel is therapeutically effective against ovarian cancer cells)
  • CASC +2.6% (announces US approval of nonproprietary name 'tucatinib' for ONT-380 - co's lead product candidate for the treatment of advanced metastatic HER2+ breast cancer)
Analyst comments:
  • INVN +3.5% (resumed with a Buy at ROTH Capital)
  • OA +1.5% (initiated with a Buy at Deutsche Bank)

>>> US Early premarket gappers

Early premarket gappers
Gapping up: CYNA +112.4%, PI +9.6%, OXM +9.6%, OLLI +7.6%, NTEC +6.8%, ZFGN +6.4%, WYNN +4.5%, CHTR +4.2%, SPU +4.1%, LYG +4%, DB +3.7%, CS+3%, NCLH +2.8%, SAN +2.7%, HSBC +2.7%, CASC +2.6%, LVS +2.6%, PUK +2.4%, SCTY +2.3%, SDRL +2.1%, RIO +2.1%, ING +2%, SMTC +1.9%, BBVA +1.8%,RBS +1.7%, PHG +1.7%, ARMH +1.6%, TWTR +1.6%, ALLT +1.5%, GEF +1.5%, BBL +1.2%, MHG +1.2%, FCX +1.1%, MT +1%, BHP +0.9%, CLF +0.9%

Gapping down: GCO -10.5%, SCVL -8.7%, NL -6.8%, CRM -6.8%, FIVE -5.2%, AMD -4.1%, FRO -3.9%, CPB -3.7%, BOX -3.2%, COST -1.9%, HLF -1.5%, DRD-1.3%, AZN -1%, GSK -0.8%, VOD -0.7%, CTRP -0.7%, QUNR -0.7%

>>> Joy Global misses by $0.02, misses on revs

Joy Global misses by $0.02, misses on revs
  • Reports Q3 (Jul) earnings of $0.10 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of $0.12; revenues fell 26.0% year/year to $586.5 mln vs the $605.61 mln Capital IQ Consensus.
  • Consolidated bookings in the third quarter totaled $527 million, a decrease of 17 percent versus the third quarter of last year. Original equipment orders decreased 46 percent while service orders were down 12 percent compared to the prior year.
  • Although global economic growth showed signs of marginal improvement at the start of the third quarter, activity for most of the year has remained sluggish with global growth tracking below expectations. Continued challenges across most emerging economies, along with marginal growth in developed economies, has resulted in a growth profile tracking just under 3 percent for the year, a slight decline from 2015.
  • Company Outlook: "Additionally we delivered our heavy continuous miner systems into salt and gypsum mines during the quarter. The growth we are driving in underground hard rock and a variety of industrial mineral applications is helping to partially mitigate significant pressures in our coal markets around the world...While the recent increase in certain commodity prices is positive, the outlook remains tepid and the financial condition of our customers is challenged, which will continue to impact both the timing and level of our incoming orders through 2017."
  • Due to the pending merger transaction with Komatsu America, the company will no longer provide quarterly updated annual financial guidance.
  • On July 21, 2016, Joy Global entered into an Agreement and Plan of Merger with Komatsu America Corp. The companies expect that this transaction will be completed by mid-2017

(JPM) Nokia Overweight : Revisiting the investment case. Steady progress expecte

Nokia Overweight

Revisiting the investment case. Steady progress expected in the mid-term.

Understandably market concerns on Nokia have been focused on revenue
decline, developments at peer Ericsson, and the overall malaise in the
industry. We believe that, while ‘16 is a down year in telecom capex, ‘17 will
see stabilization. Importantly by end of ‘18, Nokia is likely to achieve €1.2bn
of targeted synergies from the Alcatel-Lucent acquisition, additional IP
licensing similar to the achieved template deal with Samsung. Also, there is
potential that Nokia will turn around/dispose or do both to reduce/exit some
assets (Alcatel Submarine Networks & RF Systems). Combined, we believe
Nokia could achieve EPS of as much as 59c in ‘18 which could translate to a
share price of €8.8-11.5 based on its post NSN purchase/handset disposal PE
trading range (15-20x which remains valid due to the earnings growth likely).
 Technology licensing provides optionality that the market is not
valuing. The ~€150m additional IPR payment from Samsung (announced
13 Jul ‘16) coupled with Apple being the likely company whose
€150m/year licensing deal expires by end ‘16, means that despite investor
apathy, IPR related earnings are now again an important driver of Nokia
shares. We calculate that Samsung alone pays €400-500m to Nokia. Given
that Apple’s relevant revenue is higher than that of Samsung, a licensing
deal with Apple could thus add €250-350m of revenues. This coupled with
ongoing arbitration with LG Electronics means Nokia may realize up to
€1.3bn by '18, adding 30% to EPS by '18 vs. '15.
 Sale of some assets to improve earnings and add a little to cash. Within
Common group functions, Nokia reports results of two businesses – Alcatel
Submarine Networks and Radio Frequency Systems. The first is profitable,
the second is not. We expect that in the next couple of years, Nokia will
either turn around and keep businesses reported here or sell them. Both
options will result in a potential improvement in company EBIT by as much
as €200m from these actions. If sold, the businesses would not only add to
Nokia’s current €7.08bn net cash at end 2Q16 but also improve earnings.
 Networks margin to improve due to synergies: Nokia has updated (4 Aug
2016) their synergy target to €1.2bn from €900m. Since the majority of these
synergies will be seen starting in '17 even if Nokia may have a small decline
in '17 sales, earnings would still improve, reflecting double-digit margin
potential and positively impacting the multiple and thus the stock price.

(JPM) Beiersdorf / L'Oreal : BEI Dwg to underweight

Beiersdorf/L'Oreal

Mirror, Mirror: A Digital Beauty paradigm, Downgrade Beiersdorf to Underweight

The Beauty industry is changing rapidly, and we re-assess the competitive
positioning of the two largest players in our European coverage with a sideby-
side comparison of L’Oréal and Beiersdorf. While both are suffering from
fundamental shifts as the industry is disrupted by Digital, we see L’Oréal as
better equipped. We maintain a Neutral on L’Oréal as we await signs of
sustainable top-line and cost competitiveness. Despite its underperformance
YTD, we downgrade Beiersdorf to Underweight as we see few signs that the
company is addressing the industry’s LT challenges.
 L’Oréal has the means to face the challenges of the Digital Age, though
challenges remain near term. L’Oréal has started to anchor its strategy in
the Digital Age, although we think it is yet too early to judge the LT impact
as short-term performance remains mixed. Assessed against the top five
growth trends in Beauty, we think L’Oréal scores relatively well versus
global peers. However, we would seek reassurance that the organization is
adapted to foster operational speed and lower the costs base to a more
fragmented market place. Our benchmarking analysis shows that SG&A
remains a key area of savings opportunities.
 L’Oréal catalysts and valuation: At 25x PE and 16x EV/ EBITDA
17E,L’Oréal remains among the most expensive stocks in our coverage
universe. In the absence of positive earnings momentum or balance sheet
event we see limited upside for a rerating. Maintain Neutral, Dec-17 target
price €167 from €160.
 Beiersdorf strategy is failing to address structural challenges. Despite
management’s efforts to relaunch growth through innovation and market
share gains, Beiersdorf’s cosmetics growth remains at the bottom end of
peers. Assessed against the top-five growth trends in Beauty, it seems less
anchored in the Digital Age. We believe Beiersdorf could use its balance
sheet to expand into new categories/geographies, but so far the company has
been very conservative on reinvestments. Besides it has not been able to
nurture acquisition nor smaller brands in its portfolio, raising questions on
how it adapts its Nivea-centric model.
 Beiersdorf catalysts and valuation: At 26x PE and 14x EV/EBITDA 17E,
Beiersdorf remains among the most expensive stocks in our coverage. It has
underperformed YTD, though, given our concerns over its strategy and poor
short-term outlook, we downgrade to Underweight, Dec-17 target price €75
from €80.

>>> What to look at today - 1st of September 2016

Dow -0.29% S&P -0.24% Nasdaq -0.19% Russell-0.50%
US Market closed lower pressured by oil and weakness in industrials. Crude oil futures were under pressure overnight after the American Petroleum Institute reported a larger-than-expected build in crude oil stockpiles. The energy component extended its loss after the Department of Energy confirmed the disappointing reading with its more influential stockpile data. WTI crude slipped from the $46.00/bbl price level, remaining pressured throughout the session. Crude oil ended lower by 3.5% ($44.71/bbl; -$1.63), narrowing its August gain to 7.6%. Sellers pressed the broader market near midday, corresponding with remarks from Leon Cooperman of Omega Advisors. The investment fund chairman stoked selling interest when he stated that his fund recently trimmed its equity exposure. Mr. Cooperman expressed concerns regarding finding undervalued assets in the "fairly but fully" valued state of the broader market. Volume were above average with 1.08bil shares. US After Hours OXM +9%, OLLI +6.2%, GEF +3% on earnings/guidance, CYNA +113% on acquisition news... CRM -7%, FIVE -4%, BOX -2% on earnings/guidance. sian equity markets are mixed with uneasy sentiment persisting going into Friday's payrolls and potential Fed rate hike implications as soon as September if theNFPs follow a decent ADP report in US hours today. August PMI data in the region have also been mixed, though the rebound in China official manufacturing to expansion stands out above other figures. S&P500 futures, Copper, and Crude Oil prices have seen a bounce since the PMI release. In Japan, August final manufacturing PMI was confirmed to remain in contraction for the 6th straight month. China official manufacturing PMI hit a 22-month high, even as non-manufacturing PMI retreated to a 3-month low of 53.5.

Nikkei +0.12% Hang Seng +0.59% CSI -0.32% Shanghai -0.22%

Eur$ 1.1152 CNH 6.6899 CNY 6.6802 JPY 103.29 GBP 1.3143 CHF 0.9837 RUB 65.2606 WTI$44.95 (+0.56%)

S&P +0.18% EuroStoxx FTSE +0.31% Dax -0.05% SMI +0.21%

Macro :
- Dilma Rousseff Ousted in Historic Brazil Impeachment Trial
- Gross Calls for Two Fed Hikes at Double the Pace Seen by Market
- An 809% Debt Ratio and Investors at Ease? Must Be China: Gadfly

Keep an eye on :
- ADS GY : Adidas, Ahold Delhaize, CRH Added to Euro Stoxx 50
- AH NA : Adidas, Ahold Delhaize, CRH Added to Euro Stoxx 50
- AIR FP : Airbus A400M Demonstrates Capability to Operate on Sand Runway
- ALO FP : Alstom Allies With SNCF to Consider New High-Speed Train: Echos
- BMPS IM : Viola Ready to Leave Monte Paschi After Restructuring: Stampa
- COM FP : CNIM 1H Net Income EU14.7m vs EU18.7m; 1H Orders Decline Y/y
- CBK GY : Commerzbank Upgraded on Outlook for New CEO Strategy, Exane Says
- CRH ID : Adidas, Ahold Delhaize, CRH Added to Euro Stoxx 50
- DBK GY : Deutsche Bank Weighed Selling All, Part of Asset Management: WSJ
- ETE GA : Eurobank, National Bank of Greece Showing Good Core Rev.: IBG
- FGR FP : Eiffage Says 1H Net Jumps to EU133m, Sees Improved FY Results
- EKTAB SS : Elekta 1Q Adj. Ebita Beats Estimates, Sales Miss
- GATE SW : Gategroup 1H Rev. Up 13%, Posts Operating Profit
- SDF GY : K+S Says Boeckers to Succeed Lohr as New Chief Financial Officer
- KRN GY : Krones Buys Trans-Market to Strengthen Process Tech on U.S. Mkt
- LHA GY : Lufthansa, Air China Said to Finalize Venture This Month
- OERL SW : Oerlikon Closes Vacuum Sale, Sees CHF330m Net Cash Impact
- ORA FP : Orange Said in Talks to Buy Stake in Iranian Mobile Carrier: WSJ
- ORA FP : Orange Downgraded at BofAML Amid French Telecom Competition
- RI FP : Pernod FY Profit From Recurring Operations Meets Estimates, Forecasts Profit Growth as U.S., Spain Drive Sales
- RCO FP : Remy Cointreau in Talks to Form Passoa JV With Lucas Bols
- RIO LN : Rio Tinto to Miss 2016 Pilbara Shipment Forecast, Macquarie Says
- RIO LN : Glencore's interest in Rio Tinto coal assets reignited
- RDSA LN : Royal Dutch Shell to Be Added to FTSE Indexes
- SAND SS : Sandvik CEO Says SMS Margin, Volumes Can Grow, DI Reports
- SIKA SW : Sika Acquires U.S. Fiber Manufacturer FRC Industries
- SOLB BB : Solvay Said to Begin Marketing $1.6 Billion Polyamides Business
- SYNN VX : Syngenta to Be Added to Stoxx Europe 50 Index
- TKA GY : Thyssenkrupp, Tata Steel deal talks focused on UK unit's value
- FP FP : Total, ERG Said Preparing Sale of Italy’s TotalErg: Reuters
- UNA NA : Unilever Raised to Buy at Citi
- VAN BB : Van de Velde Sees Rise in 2016 Adj. Ebitda, Drop in U.S. Retail
- ZC FP : B/E Aerospace Gets Boeing 777 First Class Seat Pact Worth $260m

>>> Europe : Brokers Upgrades & Downgrades - 1st of September 2016

>>> Up
*BIOMERIEUX RAISED TO HOLD VS REDUCE AT HSBC
*CAMPARI RAISED TO BUY AT HSBC
*COMMERZBANK RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*GN STORE NORD RAISED TO NEUTRAL VS SELL AT UBS
*JUNGHEINRICH RAISED TO HOLD VS SELL AT BANKHAUS LAMPE
*OTP BANK RAISED TO BUY VS NEUTRAL AT CITI
*PETROBRAS RAISED TO BUY AT BANCO BTG PACTUAL
*RTL GROUP RAISED TO HOLD VS SELL AT BANKHAUS LAMPE
*SAMSONITE INTERNATIONAL RAISED TO BUY VS NEUTRAL AT UBS
*UNILEVER RAISED TO BUY VS NEUTRAL AT CITI

>>> Down
*AUTOGRILL CUT TO UNDERWEIGHT AT SANTANDER
*BEIERSDORF CUT TO UNDERWEIGHT AT JPMORGAN
*CASTELLUM CUT TO HOLD VS BUY AT DNB MARKETS
*CYBG CUT TO NEUTRAL VS OUTPERFORM AT MACQUARIE
*KLOVERN CUT TO HOLD VS BUY AT DNB MARKETS
*U-BLOX CUT TO HOLD AT KEPLER CHEUVREUX

>>> PT Change


>>> Initiation
*BEIERSDORF RATED NEW SELL AT CITI; PT EU80
*DELTA LLOYD RATED NEW NEUTRAL AT EXANE; PT EU4
*HENKEL RATED NEW NEUTRAL AT CITI; PT EU122
*L’OREAL RATED NEW SELL AT CITI; PT EU162
*RECKITT BENCKISER RATED NEW BUY AT CITI; PT 8,650P

>>> Call

>>> US After Hours Summary: OXM +9%, OLLI +6.2%, GEF +3% on earnings/g


After Hours Summary: OXM +9%, OLLI +6.2%, GEF +3% on earnings/guidance, CYNA +113% on acquisition news... CRM -7%, FIVE -4%, BOX -2% on earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: PI +10.2%, OXM +9.4%, OXM +9.4%, OLLI +6.2%, GEF +3.2%, SMTC +1.9%, BLOX +0.2% (light volume)

Companies trading higher in after hours in reaction to news: CYNA +113% (Cynapsus Therapeutics to be acquired by Sunovion Pharmaceuticals for $40.50/share in cash, or approximately $624 mln), SPU +5.6% (following 40%+ move higher), CHTR +3.2% (to join the S&P 500), CASC +2.6% (announces US approval of nonproprietary name 'tucatinib' for ONT-380 - co's lead product candidate for the treatment of advanced metastatic HER2+ breast cancer), NL +0.7% (following afternoon strength - ended the day up 40%), KHC +0.2% (to join the S&P 100)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: SCVL -7.1%, CRM -6.8%, FIVE -3.9%, BOX -1.7%, (also acquires Wagon Analytics), BOLD -0.3% (light volume)

Companies trading lower in after hours in reaction to news: AMD -1.4% (Advanced Micro amends its Wafer Supply Agreement with Globalfoundries for the period from Jan. 1, 2016 to Dec. 31, 2020), ATOS -1.2% (light volume; cont weakness after 28% decline today)

>>> Asian Update

Asia Mid-Session Market Update: China official manufacturing returns to expansion; AUD rallies as Australia CapEx outlook brightens

***Economic Data***
- (CN) CHINA AUG CAIXIN PMI MANUFACTURING: 50.0 V 50.1E
- (CN) CHINA AUG MANUFACTURING PMI (GOVT OFFICIAL): 50.4 (22-month high) V 49.8E; NON-MANUFACTURING PMI (SERVICES): 53.5 (3-month low) V 53.9 PRIOR
- (JP) JAPAN Q2 CAPITAL SPENDING Y/Y: 3.1% V 5.5%E; EX-SOFTWARE Y/Y: 3.1% V 5.5%E
- (JP) JAPAN AUG FINAL PMI MANUFACTURING: 49.5 V 49.6 PRELIM; confirms 6th consecutive month of contraction
- (AU) AUSTRALIA Q2 PRIVATE CAPITAL EXPENDITURE (CAPEX) Q/Q: -5.4% V -4.0%E
- (AU) AUSTRALIA AUG AIG MANUFACTURING INDEX: 46.9 V 56.4 PRIOR; 1st contraction in 14 months
- (AU) AUSTRALIA JULY RETAIL SALES M/M: 0.0% V 0.3%E; 7-month low
- (AU) AUSTRALIA AUG CORELOGIC RPDATA HOUSE PRICES M/M: 1.1% V 0.8% PRIOR
- (KR) SOUTH KOREA AUG CPI M/M: -0.1% V 0.2%E; Y/Y: 0.4% (16-month low) V 0.7%E; CPI CORE Y/Y: 1.1% V 1.6%E
- (KR) SOUTH KOREA AUG TRADE BALANCE: $5.3B V $5.4BE; Exports Y/Y: +2.6% v -0.5%e, first increase in 20 months; Imports Y/Y: +0.1% v -2.2%e
- (KR) SOUTH KOREA AUG PMI MANUFACTURING: 48.6 V 50.1 PRIOR; 1-year low
- (NZ) NEW ZEALAND Q2 TERMS OF TRADE INDEX Q/Q: -2.1% V -1.5%E
- (BR) BRAZIL CENTRAL BANK (BCB) LEAVES SELIC RATE UNCHANGED AT 14.25%; AS EXPECTED
- (CO) COLOMBIA CENTRAL BANK LEAVES OVERNIGHT LENDING RATE UNCHANGED AT 7.75%; AS EXPECTED

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.1%, S&P/ASX -0.1%, Kospi -0.5%, Shanghai Composite -0.2%, Hang Seng +0.6%, Sep S&P500 +0.4% at 2,174

***Commodities/Fixed Income***
- Dec gold +0.1% at $1,313/oz, Oct crude oil +0.6% at $44.97/brl, Dec copper +0.5% at $2.09/lb
- GLD: SPDR Gold Trust ETF daily holdings fall by 12.2 tonnes from 943.2; 3rd straight decline, lowest since June 24th
- SLV: iShares Silver Trust ETF daily holdings rise to 11,189 tonnes from 11,130 tonnes prior; multi-year high
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6784 V 6.6908 PRIOR; strongest Yuan setting since Aug 26th
- (CN) PBOC to inject CNY20B in 7-day reverse repos and CNY10B in 14-day reverse repos
- JGB: (JP) Japan MoF sells ¥2.17T in 10-yr 0.1% JGBs; Avg yield: -0.046% v -0.047% prior; bid to cover: 3.74x v 3.16x prior

***Market Focal Points/FX***
- Asian equity markets are mixed with uneasy sentiment persisting going into Friday's payrolls and potential Fed rate hike implications as soon as September if theNFPs follow a decent ADP report in US hours today. August PMI data in the region have also been mixed, though the rebound in China official manufacturing to expansion stands out above other figures. S&P500 futures, Copper, and Crude Oil prices have seen a bounce since the PMI release. In FX majors, AUD/USD saw the most pronounced volatility following upward Australia CapEx revisions for the current and next year, rising about 30pips toward $0.7550. USD/JPY fell as much as 35pips below 103.10, while NZD/USD traded in a 30pip range around $0.7250.

- China official manufacturing PMI hit a 22-month high, even as non-manufacturing PMI retreated to a 3-month low of 53.5. Among notable components in manufacturing, New Export Orders rose to 49.7 v 49.0 m/m while Input Prices rose to 57.2 v 54.6 m/m, showcasing more pronounced external demand and inflationary pressure. SME-oriented private Caixin PMI index was just shy of estimates at 50.0, and accompanying commentary noted "sustained job shedding in August." Resident economist remarked that "stagnation that follows tentative signs of recovery in July may have been caused by a temporary tightening of proactive fiscal policies", adding that "downward pressure on Chinas economy remains and government support to stabilize growth must continue."

- In Japan, August final manufacturing PMI was confirmed to remain in contraction for the 6th straight month. Markit economist said that while output rose for the first time since Feb, New Orders and New Export Orders continued to fall. Japan quarterly Capex figures were also softer than expected. The biggest declines were seen in Petroleum, Iron/Steel, and Business Machinery components, all of which hit double-digit declines.

- Economic data out of Australia were mixed - retail sales came in flat and failed to grow for the first time in 7 months. Among retail components household goods and department stores saw declines while restaurants and food retailers saw modest gains. Australia Q2 private capex missed expectations on the headline, but upward revisions for projected spending in FY15/16 (to A$127.5B from A$126.8B prior forecast) and FY16/17 (to A$105.2B v A$89.2B prior forecast), sending AUD/USD higher. The yield on the Aussie 3-year bond rose about 2bps to 1.44%.

***Equities***
US equities / ADRs:
- CYNA: Halted; Sunovion Pharmaceuticals to acquire Cynapsus Therapeutics for $40.50/shr in cash ($624M deal); +112% afterhours
- OXM: Reports Q2 $1.48 v $1.38e, R$283M v $274Me; +9.6% afterhours
- OLLI: Reports Q2 $0.21 v $0.18e, R$211.3M v $207Me; +7.8% afterhours
- CHTR: Charter Communications to be added to S&P500 Index; +3.4% afterhours
- SMTC: Reports Q2 $0.35 v $0.33e, R$135.9M v $136Me; +1.9% afterhours
- CTRP: Reports Q2 -$0.17 v -$0.21e, R$664M v $664Me; -0.7% afterhours
- BOX: Reports Q2 -$0.14 v -$0.20e, R$95.7M v $94.6Me; -1.5% afterhours
- FIVE: Reports Q2 $0.18 v $0.17e, R$220.1M v $219Me; Guides Q3 $0.09-0.10 (GAAP) v $0.10e, R$199-202M v $204Me; -5.1% afterhours
- CRM: Reports Q2 $0.24 v $0.22e, R$2.04B v $2.02Be; -6.8% afterhours
- SCVL: Reports Q2 $0.22 v $0.27e, R$230.9M v $236Me; -8.7% afterhours

Notable movers by sector:
- Consumer discretionary: Clarion Co 6796.JP +10.1% (Mitsubishi UFJ raised to overweight)
- Consumer staples: Aderans Co 8170.JP -5.2% (BNP Paribas cuts to Reduce)
- Financials: Melco International Development 200.HK +6.7% (H1 result); China Merchants Holdings International 144.HK +2.7% (H1 result)
- Industrials: SMC Corp 6273.JP -1.8% (JPMorgan adds to Most Preferred stocks)
- Technology: Samsung Electronics 005930.KR -3.2% (Galaxy Note 7 delays); Makita Co 6586.JP -4.4% (JPMorgan cuts to Neutral)
- Energy: Beach Energy BPT.AU -3.5%, Origin Energy ORG.AU -2.9% (oil declines)