>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance:
  • RNVA +16.6%, (discloses an FY17 outlook; expects to begin generating sales from the clinical research organization relationship in the first half of 2017; discloses on Dec 29 co filed a Certificate of Designation with the Secretary of State of Delaware to authorize the issuance of up to 1.75 mln shares of Series F convertible preferred stock)
  • GPS +8.2%, (December comps of +3% vs -5% year ago and -1% (BR +5%, ON -2%) last month; now expect full-year EPS to be modestly above high end of previous guidance range)
  • HELE +4.2%, AEHR +3.5%, MNTA +3.5%, FC +3%, PSMT +0.7%
M&A news:
  • OGXI +48.5% (will acquire privately held Achieve Life Science in an all-stock transaction; co will be renamed 'Achieve Life Sciences' following completion of merger),
Other news:
  • QTNT +18.7% (Quotient Limited reports positive MosaiQ results from performance evaluation study for blood grouping)
  • STML +16.7% (announces positive FDA meeting and agreement on expedited pathway to full approval of SL-401 in first-line BPDCN )
  • MDCO +7.7% (attributed to Amgen / Sanofi cholesterol drug injunction decision)
  • IONS +7.1% (signs collaboration deal with Novartis (NVS); provides near-term payments of $225 mln plus potential license fees, milestone and royalty payments)
  • CTIC +5.2% (continued strength)
  • NBIX +5.1% (provides update on FDA advisory committee for Ingrezza for the treatment of tardive dyskinesia; FDA decided to cancel the Psychopharmacologic Drugs Advisory Committee meeting which was originally scheduled for Feb 16, 2017)
  • AMGN +3.8% (following cholesterol drug Praluent ruling)
  • MNTA +3.5% (enters into a research collaboration and worldwide license agreement w/ CSL to develop and commercialize Fc multimer proteins; co to receive $50 million upfront license fee and up to $550 million in potential milestone payments from CSL)
  • ANW +3.3% (light volume- launches new service center in Germany that will serve all German Baltic Sea ports and Southern Scandinavian ports; will acquire OBAST's existing share capital)
  • BOX +3% (higher in after hours following CEO appearance on CNBC -- discussed Facebook partnership)
  • URRE +2.9% (light volume; closed the sale of its Churchrock and Crownpoint properties in New Mexico to Laramide Resources for consideration valued at $12.5 mln)
  • ILMN +2.2% (announced that GRAIL has received indications of interest to invest approximately $1B for its Series B financing primarily from undisclosed private and strategic investors; ILMN is invested in GRAIL),
Analyst comments:
  • ZFGN +4.5% (upgraded to Mkt Outperform from Mkt Perform at JMP Securities)
  • EXPE +1.4% (upgraded to Buy from Hold at Stifel )
  • MON +0.9% (upgraded to Outperform from Underperform at CLSA)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: OGXI +58.6%, STML +27.8%, QTNT +18.7%, IONS +8.7%, GPS +8.6%, MDCO +8.4%, NBIX +6.9%, CTIC+6.5%, URRE +5.9%, MNTA +5.8%, AMGN +4.6%, HELE +4.2%, AEHR +3.5%, ANW +3.3%, BOX +3%, FC +3%, RNVA +3%,MC +1.8%, EXPE +1.5%, ILMN +1.2%, SDRL +0.9%, PSMT +0.7%

Gapping down: RT -16.4%, UEC -10.8%, GIII -8.7%, REGN -6.3%, JCP -5.7%, GNK -5.2%, TEVA -5.2%, P -3.3%, SNY -3.3%,SNY -3.3%, P -3.3%, HMY -3.1%, MYOK -2.8%, IAG -2.8%, SUM -2.7%, SUM -2.6%, AG -2.3%, GOLD -2.3%, FRSH -2.2%,GPRO -2.1%, SBGL -1.9%, MRTX -1.7%, GFI -1.7%, PES -1.4%, VALE -1.4%, SHPG -1.4%, GDX -1.3%, AMRN -1.3%, SHAK-1.3%, RIO -1.1%, RDS.A -1.1%, BP -1%, BHP -0.5%

>>> Ionis Pharma: Needham and Laidlaw remain positive following corporate update

Ionis Pharma: Needham and Laidlaw remain positive following corporate update yesterday morning -- stock +7% on Noavartis (NVS) collaboration
  • Needham thought the most important update on Ionis' pipeline webcast was new data from the COMPASS trial that increase their conviction in a positive readout for APPROACH in familial chylomicronemia syndrome (FCS) this quarter. Along with the recent Spinraza approval, we believe Ionis is on a potential rapid path to sustainable profitability. Investors, however, appeared to be focused more on the discontinuation of IONIS-DMPK-2.5Rx. Ionis said the drug had encouraging effect on biomarkers, but insufficient potency. Ionis and partner Biogen instead intend to bring forward a more potent LICA version. IONS shares have pulled back since the recent Spinraza approval, and they view today's additional weakness as providing an attractive entry point going into a year with multiple catalysts.
  • Laidlaw notes IONS provided a pipeline update this morning with highlights on Volanesorsen, two completed Phase II programs: IONIS-GCGRRx and IONIS-FXIRx, and the earlier stage IONIS-DMPK-2.5Rx program. They are reiterating their Buy rating and $65 target price from to reflect bullish view on progress in IONS's pipeline, especially Volanesorsen, Spinraza and IONIS-TTRRx.
  • These notes were out before the partnership with Novartis (NVS) was announced this morning.

(BofA-ML) The Flow Show - Bonds are Back

--> strong bond inflows ($6.3bn), equity inflows ($5.5bn) & commodity outflows ($0.2bn).

>>> Asset Class Flows
- Equities: $5.5bn inflows ($3.7bn mutual fund outflows vs $9.2bn ETF inflows)
- Bonds: largest inflows in 3 months ($6.3bn)
- Commodities: modest $0.2bn outflows (8 straight weeks)

>>> Equity Flows
- Japan: largest outflows in 6 weeks ($1.4bn)
- EM: 3 straight weeks of outflows ($0.6bn)
- US: $6.2bn inflows
- Europe: small $0.1bn outflows
- By sector: 15 straight weeks of financials inflows ($0.8bn); first inflows to REITs in 9 weeks ($0.7bn); 6 straight weeks of healthcare outflows ($0.2bn)

>>> Fixed Income Flows
- First inflows in 9 weeks to EM debt funds ($1.9bn)
- 8 straight weeks of inflows to bank loan funds ($1.0bn)
- 6 straight weeks of inflows to HY bond funds ($0.9bn)
- 4 straight weeks of inflows to TIPS funds ($0.5bn)
- 2 straight weeks of inflows to IG bond funds ($3.6bn)
- 10 straight weeks of outflows from muni bond funds ($0.5bn)
- 9 straight weeks of outflows from MBS funds ($0.8bn)
- Outflows in 8 of past 9 weeks from Govt/Tsy funds ($0.4bn)

>>> Sika shareholder SHW files appeal against requests denial by Cantonal Court

Sika shareholder SHW files appeal against requests denial by Cantonal Court of Zug
Sika shareholder Schenker-WinklerHolding has appealed the decision to deny all its requests by the Cantonal Court of Zug, a Sika press release stated.
In its judgment of October 27, 2016, the Cantonal Court of Zug denied all requests of Schenker-Winkler Holding AG (SWH).
The Court held that the restriction of SWH's voting rights at the 2015 Annual General Meeting, pursuant to the share transfer restriction ("Vinkulierung", art. 4 of Sika's articles of association), was legal.
Today Sika received the appeal filed by SWH against the judgment of the Cantonal Court. The Superior Court of Zug will decide on the appeal.

>>> Europe : Brokers Upgrades & Downgrades - 6th of January 2016

>>> Up
*Aena upgrade to Buy from Hold at HSBC, PT €145 (Note attached)
*Amerisur Resources Raised to Overweight at Barclays
*Atlas Copco Raised to Buy at UBS, PT SEK310
*Banco BPM Raised to Buy at HSBC, PT EU3.59
*BAT Raised to Sector Perform at RBC, PT 4400p
*BNP Paribas upgaded to Buy, PT €69.10 at Kepler (Note attached)
*Continental Raised to Buy at SocGen, PT EU225
*DSM Raised to Overweight at Barclays
*Fenner Raised to Neutral at UBS, PT 250p
*Flughafen Wien upgrade to Buy from Hold at HSBC, PT 27
*Flughafen Zurich upgrade to Buy from Hold at HSBC, PT 210
*Lloyds Raised to Overweight at Barclays
*Orange Belgium Raised to Strong Buy at Raymond James, PT EU25
*Worldpay Raised to Outperform at Exane, PT 340p

>>> Down
*BRAAS Monier Building Group Cut to Hold at HSBC, PT EU25.20
*Deutsche Bank downgraded to Holdat Kepler PT €14.85
*DNO Cut to Equal-Weight at Barclays
*EnQuest Cut to Underweight at Barclays
*Luxottica Cut to Hold at SocGen
*Mediaset Cut to Neutral at Macquarie, PT EU4
*Next Cut to Add at AlphaValue
*Norwegian Air Cut to Sell at ABG Sundal, PT NOK240
*Prosafe Cut to Sell at Nordea Securities, PT NOK30
*Tod's Cut to Sell at SocGen, PT EU57
*Wirecard Cut to Neutral at Exane, PT EU48

>>> PT Change


>>> Initiation
*Banco BPM Rated New Equal-Weight at Barclays, PT EU2.80
*Halma Rated New Neutral at Goldman
*IMI Rated New Neutral at Goldman
*Rotork Rated New Buy at Goldman
*Smiths Rated New Buy at Goldman, PT 16.70p

>>> Call
>> Stock
*FIAT ADDED TO GOLDMAN SACHS PAN-EUROPE CONVICTION BUY LIST
*Julius Baer Replace NAtixis in Kepler Least Preferred Stocks

>>> What to look at today - 6th of January 2017

Dow-0.21% S&P -0.08% Nasdaq +0.20% Russell -1.15%
US MArket closed just below the flat line with Nasdaq small higher and Russell underperforming. Cyclical sectors performed slightly worse than their defensive counterparts, as five of the six finished in negative territory. Leading the retreat was the financial sector (-1.0%), which broke its three-session winning streak. Industrials (-0.4%), materials (-0.3%), and energy (-0.3%) also trailed the broader market. Energy had a poor showing despite crude oil ending the day up 0.9% at $53.87/bbl. XRT -2.6% after Macy's & Khol...AMZN +3.1%. Real estate (+0.5%), consumer staples (+0.3%), and utilities (+0.1%) also finished in the green, drawing strength from a decline in yields. US After Hours GPS +8% on positive holiday sales, AMGN +4% and SNY -4% following Praluent injunction ruling. Asia equity markets are mixed following a session of Trump-trade profit-taking on Wall St. US treasuries were also bid sharply higher and yields came in going into Friday's non-farm payrolls, particularly in light of softer than expected ADP. USD traded lower in the US session, but has since pared some of its losses in Asia. USD/JPY is the biggest gainer in relative terms with a 0.5% rise. Yuan is also off its best levels after 2 straight days of outsized gains, falling from 6.80 to 6.84 after the latest PBoC fix. In Japan, the battle against deflation saw a setback, as inflation-adjusted wages fell for the first time in 11 months.

Nikkei -0.34% Hang Seng +0.23% CSI -0.47% Shanghai -0.25%

Eur$ 1.0578 CNH 6.8310 CNY 6.9290 JPY 116.23 GBP 1.2380 CHF 1.0121 RUB59.2275 WTI$ 53.63 -0.23%

S&P -0.04% EuroStoxx -0.03% FTSE +0.10% Dax -0.07% SMI +0.18%

Macro :
- S&P 500 to Reach 2450 in Volatile 2017: Baird’s Rauscher
- U.K. Brexit Ministry Opposed Barrow Appointment as EU Envoy: FT
- China Said to Mull Scrutiny of U.S. Firms If Trump Starts Feud

Keep an eye on :
- AIR FP : Boeing Said Close to $10.1 Billion Order From India’s SpiceJet
- BNP FP : BNP Paribas Put Volume Jumps for Second Day on Block Trade
- DAI GY : Nissan Halts Joint Luxury-Car Development With Daimler: Reuters
- BN FP : WhiteWave Paring Loss; Heavy Metals Found in Protein Bars: Fox {WWAV US Equity gip<GO>}
- AM FP : Dassault Aviation Backlog Includes 110 Rafale Aircraft End-Dec.
- DIS US : Disney CFO Says Higher Programming Costs to Hurt Profit in 2017
- ENGI FP : EU to Make Engie Pay EU300m to Luxembourg, Les Echos Says
- GLEN LN : Glencore Says It’s Considering Strategic Options for Mutanda
- NOVN VX : Ionis to Work With Novartis on 2 Akcea Drugs in Up To $1b Deal
- RNO FP : Nissan Halts Joint Luxury-Car Development With Daimler: Reuters
- ROG VX : ILMN mentionned as potential target for ROche : http://bit.ly/2hW0toO
- ROG VX : Roche Gets FDA Approval for Anti-Mullerian Hormone Test
- ROG VX : Roche’s Genentech Says FDA Approves Lucentis for Myopic CNV
- SAN FP : Amgen Wins Bid to Ban Sanofi/Regeneron’s Praluent Sales -->Regeneron, Sanofi Will Appeal Amgen’s Victory in PCSK9 Case
- STL NO : Statoil to Reconsider U.S. Gulf of Mexico Exploration: DN
- SUBC NO : Statoil to Opt for Subsea Concept to Existing Troll A: Offshore
- NOKIA FH : China’s Telecom Carriers to Invest $43b for 5G Network: Nikkei
- VOW3 GY : Volkswagen to Introduce All-Electric Model in 2020
- VOW3 GY : VW Korea Official Convicted of Fabricating Emission Documents