Fast FT : Nintendo up after Super Mario Run release details revealed

Investors have welcomed details surrounding the impending debut of Super Mario on your iPhone, and pushed Nintendo shares higher in morning trade.
The Kyoto-based video game and console maker announced overnight that Super Mario Run, a side-scrolling smartphone game based on the iconic Italian plumber, would be available on Apple’s App Store from December 15 in 151 countries. A cut-down version can be downloaded for free, but players will need to pay $9.99 (9.99 euros, or 1,200 yen) for the game in its entirety. An Android version will be available in 2017.

And it would seem the market has taken kindly to the details, pushing Nintendo 4.9 per cent higher in morning trade versus a 1 per cent advance for the broad Topix benchmark. The stock had been up as much as 5.3 per cent.

It has been a year of waxing and waning sentiment toward Nintendo. Shares closed 13.2 per cent higher on September 8 following the initial announcement a Super Mario game would be appearing on smartphones before Christmas.

Nintendo has been a long-time holdout when it comes to smartphone gaming, preferring instead to keep its franchises such as Mario, The Legend of Zelda, Donkey Kong and Metroid exclusive to its own proprietary devices.

But there was huge buzz when one of the company’s other success stories, Pokémon, made its way onto mobile devices in July in the form of the augmented reality game Pokémon Go, where players walk around in an effort to catch an array of video game monsters that are overlaid on real-world environments. However, analysts have pointed out Nintendo would only receive a fraction of the game’s gross revenues because it holds only stakes in the app’s developer – Niantic – and the Pokémon Company.

Still exhibiting some reluctance to make an unbridled foray into smartphone gaming, Nintendo last month revealed it would release Switch, a hybrid console with both handheld and home capabilities, in March next year. Investors weren’t entirely thrilled on the day, and pushed shares down 6.6 per cent at the time.

Fast FT : UK house price growth weaker than forecast in year to September

UK house price growth weaker than forecast in year to September

Britain’s house price growth remained steady at 7.7 per cent in the year to September, according to official figures, despite expectations that they would nudge up more than 8 per cent. The latest figures are in line with a 7.7 per cent rise for the year to August, although August’s growth had originally been estimated at a more robust 8.4 per cent. Economists had expected September’s data to show a stronger increase of 8.1 per cent.

Data on the UK housing market has been mixed since the Brexit referendum but has generally pointed to softening growth since the first few months of 2016. While a number of estate agents and housebuilders reported greater uncertainty in the market following Britain’s vote to leave the EU, other factors are also at play, including tax changes for buy-to-let investors and second home buyers which came into force in April. The changes had sparked a rush to avoid high stamp duty in the first few months of the year.

According to the Office for National Statistics’ house price index, price growth peaked at 9.3 per cent this year in June.

A number of housebuilders have reported a recovery in confidence among homebuyers since an initial knock in the immediate aftermath of the referendum. Crest Nicholson said this morning that buyers are “largely returning to the market, as high employment, good mortgage access and low interest rates continue to make this a very good time to buy a home”.

Economists have also pointed to a lack of supply as another factor behind house prices remaining resilient.

House price data in the UK is always accompanied by the caveat there is a sometimes lengthy lag between offers being accepted and legal completions.

According to Rightmove, the property search website, average asking prices fell 1.1 per cent in November, having grown in September and October.

FT : Land Securities swings into loss as Brexit vote takes toll

Land Securities swings into loss as Brexit vote takes toll
Property company reports lower levels of London office take-up since vote to leave EU

The UK’s largest listed property company, Land Securities, swung to a loss in the six months to September 30 as the vote to leave the EU weighed on the commercial property market.

The FTSE 100 group recorded a £95m loss in the first half, down from a £708m pre-tax profit a year earlier, mainly because of a 1.8 per cent drop in the value of its assets to £14.4bn.

However, the value decline was less than analysts had expected and smaller than those recorded across the wider market, after Land Securities sold off more than £1bn of properties to cut risk in the run-up to the referendum.

Shares in Land Securities rose 4.4 per cent to £10.27 on Tuesday morning.

The group, which is the first major property company to report results since the June 23 referendum, announced 9.8 per cent increase in its first-half dividend to 17.9p.

Rob Noel, chief executive, said: “The outlook in the short term is one of uncertainty — we have a government that is set to trigger Article 50 [to leave the EU] in the next 90 working days and business doesn’t really know what its trading environment is going to be.

“We are seeing lower levels of office take-up than normal in London and we expect that to translate into weaker net effective rental values.”

However, he added: “We remain pretty chipper despite the market conditions. The business couldn’t really be in a better position.”

Land Securities is closely watched in the property industry for its positioning in relation to market cycles, and had warned ahead of the vote of a potential “demand shock” in London offices if the UK voted to leave the EU.

Mr Noel said he expected retail property to suffer as well.

“You have seen signs of it with ‘Marmitegate’. We import virtually 60 per cent of what we buy and the retailers are going to have to pass those increases on to the consumer … This will continue to widen the gap in performance between dominant [retail] destinations like ours and the rest,” he said.

Capital values across the office and retail property markets have fallen about 5 per cent since the Brexit vote, according to analysts at Peel Hunt. Property companies have seen steep drops in their share prices: Land Securities is trading about 13 per cent below its pre-referendum share price, while its biggest rival British Land is 20 per cent down.

Land Securities said on Tuesday that its revenue profit, an adjusted measure, was up 4.5 per cent to £192.5m, while its loan-to-value ratio rose slightly from 22 per cent to 22.6 per cent.

Mr Noel said the group was “fully locked and loaded” to begin acquiring land for the next cycle, with £1.5bn of cash and available borrowing facilities, but added: “I don't think we will be spending in scale over the next six months.”

The group’s speculative development levels are at record lows, while it has let 41 per cent of its Nova development in Victoria, one of the last of its new projects to conclude.

David Brockton, analyst at Liberum, said the results “demonstrate a resilient performance into a market correction”. British Land reports first-half results on Wednesday.

>>> Bpost believed to be preparing new takeover offer for PostNL - report (trans

Bpost believed to be preparing new takeover offer for PostNL - report (translated)

Bpost is preparing a new offer to take over PostNL, reported the Belgian daily De Tijd based on talks with analysts. The Dutch government rejected Bpost's previous offer. According to the report, a new offer might be expected this week.

Bpost could increase its offer to EUR 6.10 per share. The previous offer was of EUR 5.65 per share; EUR 2.5bn in total.

The largest hurdle, however, is the 40% share the Belgian government would keep in the merged entity.

>>> Sanef 15% stake auction enters first round

Sanef 15% stake auction enters first round – report (translated)

The first round of the auction for a 15% stake in French motorways operator Societe des Autoroutes du Nord et de l'Est de la France (Sanef) takes place this week, French daily Les Echos reported.

The unsourced article said the deadline for submitting first round bids expires today, Tuesday.

According to the report, the shareholding, being sold by French state-owned financial services group Caisse des Depots et Consignations (CDC), could be valued at between EUR 700m and EUR 800m.

The report claimed that interested bidders include Groupe Eurotunnel [EPA:GET], which operates the two rail tunnels between France and England, and major infrastructure funds from Australia and Canada.

The report went on to say that the current shareholders of Sanef, including majority shareholder Abertis [BME: ABE] from Spain, French insurer Predica, investment fund Ardian, and FFP, the investment holding from the Peugeot family, could also have the right to enter the fray if they match the market value of the shares.

>>> Asahi favorite in tender for AB Inbev's eastern European beer brands; KKR, M

Asahi favorite in tender for AB Inbev's eastern European beer brands; KKR, Mid Europa Partners no longer in game

The Japanese brewery Asahi is the favourite for the takeover of AB InBev's Eastern European beer brands, reported Hospodarske Noviny, citing undisclosed sources close to the sale tender.

The Czech language item noted that there are five remaining suitors for AB InBev's beer assets in Central and Eastern Europe. According to Hospodarske Noviny, the remaining five suitors, that now will be asked to submit binding offers, are: the brewery group China Resources, consortium of funds Bain Capital and Advent International, consortium of Jacobs Holding, PSP Investments and Czech investment group R2G, and Czech investment group PPF.

The item noted , without citing the source of the information , that a consortium of KKR and Mid Europa Partners, which was previously reported to be in the tender finale, is most likely no longer in the game.

The sale of the brands is part of the divestment program with which AB InBev had to agree in order to get permission for its takeover of SABMiller.

The selling price of the portfolio, including the Czech Plzensky Prazdroj (Pilsen Urquell) and Polish Kompania Piwowarska, can reach as high as USD 7bn, the item added, without citing the source of the information.

>>> Asian Update


Back to the civilisation but not yet to the office
Asia Mid-Session Market Update: PBoC Yuan fix at new multi-year lows; RBA minutes cautious on China outlook and uncertain labor despite signs of improvement

***US Session Highlights***
- (US) NY Fed Consumer Expectations survey: 1-year US inflation expectations edged higher in Oct; 3-year inflation expectations unchanged
- (US) S&P cuts New Jersey GO bonds one notch to A- from A; outlook Negative
- (US) Fed's Kaplan (moderate, non-voter): we need to find opportunities to raise rates; the time for monetary policy in the US is coming to an end
- MENT: To be acquired by Siemen's for $37.25/shr in cash; valued at $4.5B
- HAR: To be acquired by Samsung Electronics for $112/shr cash; deal valued at $8.0B
- UPS: Airline maintenance technicians represented by Teamsters authorize a strike at UPS

***US markets on close: Dow +0.1%, S&P500 flat, Nasdaq -0.4%***
- Best Sector in S&P500: Financials
- Worst Sector in S&P500: Technology
- Biggest gainers: HAR +25.2%, SWN +9.3%, SNI +7.6%, DISCAN +7.2%, RF +6.7%
- Biggest losers: TDG -7.1%, PVH -5.7%, KORS -5.1%, NVDA -4.9%, EW -4.8%
- At the close: VIX 14.5 (+0.3pts); Treasuries: 2-yr 1.00% (+9bp), 10-yr 2.22% (+10bps), 30-yr 2.98% (+5bps)

***US movers afterhours***
- AAP: Reports Q3 $1.73 v $1.72e, R$2.25B v $2.20Be; +12.6% afterhours
- EGLE: Announces Acquisition of SDARI-64 Ultramax Newbuilding Vessel; +8.2% afterhours
- ALRM: Reports Q3 $0.19 v $0.11e, R$67.8M v $59.8Me; names Steve Valenzuela new CFO, effective Nov 15th; +5.0% afterhours
- PIR: Guides Q3 at high end of previously guided ranges for sales and earnings (implies high end of EPS $0.09-0.15 v $0.10e, SSS -3% to -1%); +4.6% afterhours
- ZOES: Reports Q3 $0.04 v $0.04e, R$67.3M v $68.1Me; -4.8% afterhours
- BETR: Reports Q3 $0.12 v $0.15e, R$68.0M v $64.7Me; -11.2% afterhours

***Asia Session Notable Observations, Speakers and Press***
- USD consolidates week-long gains as expectations for December rate hike approach 90% and those for at least 2 more hikes next year reach about 25%.
- Oil under more pressure with reports of OPEC remaining divided on output cuts.
- US Pres Obama holds first press conference since the elections; Committed to ensuring a smooth transition for President-elect Trump; Says Trump is committed to NATO relationship; Amid speculation over Trump cabinet appointments, Giuliani said to be in the running for State Sec and not interested in AG post.
- PBoC sets Yuan midpoint at weakest level since late 2008; Offshore Yuan falls through CNY6.87 - a multi-year low.
- RBA meeting minutes reiterate the risks around inflation forecast are broadly balanced; Acknowledging improving trade conditions but still sees uncertainty about outlook due to China; Uncertainty around labor market conditions also remains going into this weeks employment data.

***Asia Key economic data:***
- (NZ) NEW ZEALAND OCT PERFORMANCE OF SERVICES INDEX: 56.3 V 54.2 PRIOR
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 118.2 v 117.8 prior
- (ID) Indonesia Oct Trade Balance: $1.2B v $1.1Be
- (SG) SINGAPORE SEPT RETAIL SALES M/M: -0.7% V +0.3%E; Y/Y: 2.0% V 2.0%E
- (TH) Thailand Oct Unemployment Rate y/y: 1.2% v 0.9% prior

***Asian Equity Markets (00:00ET)***
- Nikkei flat, Hang Seng +0.4%, Shanghai Composite -0.3%, ASX200 -0.3%, Kospi flat

***FX ranges/Commodities/Futures/Fixed Income (00:00ET):***
- EUR 1.0735-1.0770; JPY 107.80-108.40; AUD 0.7550-0.7580; NZD 0.7100-0.7140
- Dec Gold +0.2% at 1,224/oz; Dec Crude Oil +2.0% at $44.20/brl; Copper +0.5% at $2.53/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 5.7 tonnes to 928.9 tonnes; lowest since June
- SLV: iShares Silver Trust ETF daily holdings fall to 11,080 tonnes from 11,095 tonnes prior; lowest since Aug 21st
- Equity Futures: S&P e-mini +0.2%, Dax +0.3%, FTSE100 +0.2%
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.8495 V 6.8291 PRIOR; weakest Yuan setting since Dec 2008
- JGB: (JP) Japan MoF sells ¥2.17T in 0.1% 5-year JGB bonds; avg yield -0.160% v -0.201% prior; bid-to-cover 3.56x v 4.31x prior

Notable movers by sector:
- Consumer discretionary: Mantra Group MTR.AU +4.8% (new CFO); Dentsu Inc 4324.JP -7.0% (9-month result); Hokuetsu Kishu Paper Co 3865.JP -7.9% (H1 result)
- Financials: OzForex Group OFX.AU -15.9% (H1 result); Sumitomo Mitsui Trust Holdings 8309.JP +3.6% (H1 result); Mitsubishi UFJ Financial Group 8306.JP +4.9% (H1 result); Sumitomo Mitsui Financial Group 8316.JP +3.8% (H1 result)
- Industrials: Takeuchi Manufacturing Co 6432.JP +3.5%
- Technology: Sun King Power Electronics Group 580.HK +3.4% (guidance)
- Materials: OZ Minerals OZL.AU +5.3% (to extend Prominent Hill mine life); Zhejiang Dongliang New Building Materials Co 002082.CN +10.0% (shareholder to increase stake); New Hope Corporation NHC.AU -3.0% (guidance); Yokohama Rubber Co 5101.JP +3.7% (9-month result)

>>> After Hours Summary: AAP +12%, ALRM +5%, PIR +5% following

After Hours Summary: AAP +12%, ALRM +5%, PIR +5% following earnings/guidance, RPRX +17% on trial results, EQY +15% on merger news... AIMT -6%, ZOES -5% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: AAP +12%, KGJI +8.9%, ALRM +5% (also names Steve Valenzuela as new CFO effective November 15), PIR +4.6% (Sept-October comps up low single digits, early Nov impacted by election but expects improvement), NOAH +2.5% (ticking higher), NWL +2.2% (ticking higher; reaffirms FY16 & FY17 guidance ahead of its presentation at the Morgan Stanley Global Consumer & Retail Conference)

Companies trading higher in after hours in reaction to news: RPRX +17% (reports topline results for both its pooled oral and vaginal delivery Phase 2 studies in the treatment of uterine fibroids; primary endpoint of induction of amenorrhea met for both pooled oral and vaginal delivery compared to placebo), EQY +14.8% (Equity One and Regency Centers Corporation confirm merger in $15.6 bln transaction), EGLE +9.2% (following 40%+ move higher today; acquires a resale 2017-built 64,000 deadweight SDARI-64 Ultramax dry bulk vessel constructed at Chengxi Shipyard Co; financial details not disclosed; scheduled to be delivered in January 2017), LOCK +4.1% (Symantec said to also be considering a potential acquisition of LifeLock, according to Bloomberg), CAKE +2.5% (light volume; enters into strategic relationship with Fox Restaurant Concepts), PRGO +1.7% (Starboard Value increases active stake to 6.2%), HCA +1.5% (authorizes $2 bln share repurchase program), CAFD +1.2% (enters into agreement to acquire 34 percent stake in 300-mw stateline solar project for $329.5 million), GEO +1.2% (Greenlight disclosed new stake), PTLA +0.9% (announces results from three substudies of the pivotal Phase 3 APEX Study of betrixaban at the AHA Scientific Sessions), EXPE +0.5% (Trivago files registration statement relating to a proposed initial public offering of American depositary shares representing Class A shares of its affiliate, travel B.V.)

Airlines lifting on Berkshire Hathaway / Warren Buffett stake disclosures:  AAL +3.9%, UAL +2%, DAL +2.8% (Berkshire confirmed new stakes in quarterly filing), LUV +3.4% (reports out that Buffett's Berkshire also bought stake in Southwest)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: BETR -11.7% (also files for $100 mln mixed securities shelf offering and 45,232,632 share common stock for resale by selling stockholders), GEVO -8.7%, AIMT -6.4%, ZOES -5.1%, GLOB -3.5%, SYNC -1.8% (light volume; also files shelf registration statement under which it may from time to time issue common stock up to an aggregate amount of $40 mln), HOLI -1.2% (light volume)

Companies trading lower in after hours in reaction to news: SYN -18.9% (commences an underwritten public offering of shares of its common stock and warrants to purchase shares of its common stock), TSRO -6% (commences 1.75 mln common stock offering), STAY -3.3% (announces an underwritten secondary offering of 12,750,000 Paired Shares), ANGO -2.1% (commences 2.5 mln common stock offering by selling stockholders), TTMI -1.8% (TTM Tech's largest shareholder commences secondary offering of 12,000,000 shares of its common stock), GLNG -1.2% (commences 5.7 mln common stock offering)