>>> House of Lords select committee publishes report on "The Invoking of Article

House of Lords select committee publishes report on "The Invoking of Article 50": says the Executive should not act without consulting Parliament (update) 

"... we consider that there is a strong argument that enacting the result of a referendum of this magnitude should require at least the same level of parliamentary involvement as a decision to authorise a military deployment...It would be constitutionally inappropriate, not to mention setting a disturbing precedent, for the Executive to act on an advisory referendum without explicit parliamentary approval particularly one with such significant long-term consequences. The Government should not trigger Article 50 without consultingParliament."

>>> Novo Nordisk A/S: Adults with type 2 diabetes treated with Xultophy were up

Novo Nordisk A/S: Adults with type 2 diabetes treated with Xultophy were up to 4.5 times more likely to reach glycaemic targets
  • Co presented data showing the odds of reaching fasting plasma glucose (FPG) targets without hypoglycaemia and weight gain were significantly greater for Xultophy compared to up-titration with insulin glargine U100 in adults with type 2 diabetes uncontrolled on insulin glargine U100 (20-50 units).
  • The post-hoc analysis of the DUAL V phase 3b trial was evaluated using a FPG target of 7.2 mmol/L, selected to better reflect targets used in clinical practice.2 Data showed that adults treated with Xultophy were 4.55 times more likely to reach FPG targets without confirmed hypoglycaemia and weight gain vs up-titration with insulin glargine U100

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
:
  • AGTC -27.2%, FARM -4.1%, (also to acquire substantially all the assets of China Mist Brands for an upfront payment of $10.8 mln ), USAT -4.1%, OPTT -2.9%
M&A news:
  • APC -4.4% (to acquire the deepwater Gulf of Mexico assets of Freeport McMoRan (FCX) Oil & Gas for $2.0 billion; prices 35,250,000 shares of its common stock for total gross proceeds of approx $1,921 mln)
  • FCX -1.7%
Select financial related names showing weakness: PUK -3%, HSBC -2.2%, SAN -1.9%, BCS -1.7%, MS -1.6%, LYG -1.6%,ING -1.2%, CS -1%

Select metals/mining stocks trading lower: BBL -2.4%, BHP -2.4%, AU -2%, VALE -1.9%, HMY -1.8%, RIO -1.3%

Select oil/gas related names showing early weakness: SDRL -2.1%, RIG -2.1%, BT -2%, BP -1.9%, TOT -1.7%, STO-1.6%, CHK -1.6%, AEG -1.4%, OAS -1.1%, RDS.A -1%
Other news:
  • FATE -7.8% (files for 5,250,000 share common stock offering by the selling stockholders )
  • BUFF -5.7% ( files for 14.3 mln share common stock offering by selling shareholders),
  • MCFT -5.6% (commences a 4 mln share follow-on offering of common stock held by an affiliate of Wayzata Investment Partners ...)
  • WTW -2.5% (Weight Watchers CEO James Chambers resigns; commences search for a new CEO; CFO and two Directors to comprise interim Office; sees membership growth in Q3, confident in top and bottom line growth for the year)

Analyst comments:
  • RRGB -2% (downgraded to Underperform from Buy at BofA/Merrill)
  • NFLX -1.5% (downgraded to Underperform from Neutral at Macquarie)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
: BPMX +3.4%, UNFI +1.5%, GMS +1.5%

M&A news:
  • ISIL +9.8% (to be acquired by Renesas (RNECF) for $22.50/share in cash, or approximately $3.2 bln)
  • ACTS +7.5% (thinly traded; Action Semi enters into definitive merger agreement for going private transaction at $2.20/share in cash)
Other news:
  • KTOS +5.9% (awarded $54 mln contract to provide five Marine Common Aircrew Trainers to the United States Marine Corps)
  • P +3.9% (announces the signing of direct licensing agreements for recorded music with Merlin Network, Sony Music (SNE), and Universal Music Group along with The Orchard & over 30 other independent labels/distributors)
  • SANM +3.5% (announces $150 million stock repurchase program )
  • ATEC +2.2% (granted 510(k) clearance by the FDA for the Battalion Universal Spacer System)
  • AMKR +1.4% ( announces new CFO)
  • SCTY +1.1% (may be related to positive broker note/commentary)
  • EBAY +1% (ChannelAdvisor reports Aug SSS for Amazon +10.5%, eBay's +5.9%)
Analyst comments:
  • ERII +5.3% (upgraded to Buy from Hold at Jefferies)
  • KATE +2.3% (upgraded to Outperform from Market Perform at Wells Fargo)
  • BABY +2.2% (upgraded to Outperform from Mkt Perform at Raymond James)
  • LUX +1.9% (upgraded to Buy from Hold at Deutsche Bank)
  • NVLS +1.7% (initiated with a Outperform at Raymond James)
  • RYAM +1.4% (upgraded to Sector Perform from Underperform at RBC Capital Mkts)
  • TXN +1% (upgraded to Outperform from Mkt Perform at Bernstein)

>>> Freeport-McMoRan: Color on sale of deepwater GoM assets to Anadarko (APC) (

Freeport-McMoRan: Color on sale of deepwater GoM assets to Anadarko
  • FCX -2% premarket with oil down 2.2%... APC -4.4%
  • Cowen notes Freeport announced the sale of Deepwater GOM assets to Anadarko (APC) for cash and contingent payments. They believe investors were skeptical a GOM deal could get done and view this transaction as the long-awaited closure of a major overhang for FCX shares. They expect investors to now turn full attention to Indonesia.
  • FBR & Co believes the transaction will likely be viewed as a major positive development for the co, following management's year-long quest to reduce debt, reduce spending in the O&G division especially, and focus on its mining assets, even as some major mining assets had to be divested. The GOM valuation is generally in line with our dual NAV and DCF valuation of the co's O&G assets (including the California assets FCX will retain) at $2.5B. After the company had explored various monetization efforts for its GOM assets without results, they believe that yesterday's announcement beat expectations in terms of the likelihood of a sale as well as valuation.
  • RBC: Freeport announced the sale of its Deepwater Gulf of Mexico Oil & Gas asset for a total cash consideration of US$2.0 billion to Anadarko Petroleum Corporation, versus our valuation of US$1.7 billion.

WSJ : IEA Cuts Global Oil Demand Forecast Amid ‘Wobbling’ Asian Demand

IEA Cuts Global Oil Demand Forecast Amid ‘Wobbling’ Asian Demand
In its closely watched monthly report, the IEA downgraded its global oil demand predictions by about 100,000 barrels a day for this year

Global oil demand growth is faltering and oil production is stabilizing, providing a recipe for the global glut of petroleum and its products to continue through much of next year, the International Energy Agency said Tuesday.
The IEA’s closely watched monthly oil-market report marked an abrupt shift for an agency that a month ago said the world’s oil glut had begun disappearing. The Organization of the Petroleum Exporting Countries also surprised the market this week with a report that oil production outside the cartel was proving more resilient than expected.
The IEA—which advises oil-consuming countries on their energy policies —blamed “wobbling” Asian oil demand and falling oil consumption in Europe for much of the change. The Paris-based agency downgraded its global oil-demand predictions by about 100,000 barrels a day for this year—although it is growing by 1.3 million barrels a day. It also reduced the forecasts by about 200,000 barrels a day in 2017, with consumption increasing more slowly at 1.2 million barrels a day.
The tapering of demand growth comes despite oil prices remaining below $50 a barrel for much of the year, over 50% below 2014 levels.
“The stimulus from cheaper fuel is fading,” the IEA report said.

Oil prices fell after the report’s release Tuesday morning, with Brent, which sets the benchmark price for internationally traded crude, declining over 2% to less than $47.50.
The fresh data is set to intensify the debate among oil producers later this month in Algiers about whether they should put new limits on their production. Members of OPEC, a 14-nation cartel that controls over a third of the world’s oil, are set to discuss “freezing” their production levels with big oil producers outside the group such as Russia.
OPEC has been pumping at elevated levels, the IEA said, edging up by about 20,000 barrels a day to 33.47 million barrels a day in August. Middle-East producers kept their taps open to near record rates, with the United Arab Emirates hitting a new record of 3.09 million barrels a day, according to the IEA.

Despite talk of an oil production freeze, the IEA said the dynamic of heightened supplies and stumbling demand “may not change significantly in the coming months.” The agency said advanced economies were storing record amounts of oil, with inventories rising to a record of over 3.1 billion barrels.
“As a result, supply will continue to outpace demand at least through the first half of next year,” the IEA said. “As for the market’s return to balance—it looks like we may have to wait a while longer.”
The IEA’s forecast for lower demand growth in Asia undercuts a key argument for oil bulls and complicates the picture for energy-market watchers in Asia. In China, heavy flooding dented oil use as did government orders to shut down some industrial centers to keep the air clean during the G-20 summit last month, the IEA said.
Signs of firming oil consumption from China and India had helped put a floor under the oil market when prices were plumbing lows of under $30 a barrel earlier this year.
Oil imports into China have been growing briskly this year. Official government data showed oil imports jumped 24% in August to about 7.78 million barrels a day, the highest level of the year, and have pointed to a strong pickup in imports to the world’s No. 2 oil consumer for much of 2016.
Yet whether those imports reflect strong demand for gasoline and other petroleum products—or whether they are simply a sign of high levels of commercial or strategic stockpiling—has become a topic of intense debate among oil market watchers. Many say strategic reserves have been nearing capacity, and earlier this month the government said strategic oil reserves were growing at a slowing pace.
The country said strategic reserves stood at about 32 million metric tons, or 235 million barrels, up about a quarter compared with data released for mid-2015. Reserves had more than doubled from late 2014 through mid-2015. Many market watchers took that as a sign that end-user demand in the country was brisk.
“It’s become a little bit murky,” said Virendra Chauhan, oil analyst at Energy Aspects, referring to attempts to parse Chinese demand.

*CATALENT TO BUY PHARMATEK, ADDING EXPANDED DRUG DEVELOPMENT

04/2016

Exclusive: Lonza in bid to acquire Catalent - sources

By Greg Roumeliotis and Arno Schuetze | NEW YORK/FRANKFURT
Swiss specialty chemicals and life sciences company Lonza Group AG (LONN.S) has offered to acquire U.S. drug delivery technology company Catalent Inc (CTLT.N), three people familiar with the matter said this week.
The deal would expand Lonza's life sciences capabilities, allowing it to produce a wider range of molecules used in active pharmaceutical ingredients and drug delivery. Shares of Catalent rose as much as 12 percent on the news, giving it a market capitalization of close to $4 billion.
Catalent and Lonza have so far failed to agree on the price, and there is no certainty that their negotiations will continue, the people said. Lonza, which is keen on an acquisition, may decide to pursue other targets, one of the people added.
The sources asked not to be identified because the discussions were confidential. Lonza and Catalent did not immediately respond to requests for comment.
Lonza has been expanding its presence in the United States in recent years, buying up small biopharmaceutical companies and, in 2011, acquiring chemical maker Arch Chemicals for $1.4 billion. Lonza has a market capitalization of 8.7 billion Swiss Francs ($9 billion).
Based in Somerset, New Jersey, Catalent provides advanced delivery technologies and development solutions for drugs, biologics and consumer health products. It has 31 facilities worldwide and generated more than $1.8 billion in revenue in 2015.
In 2007, private equity firm Blackstone Group LP (BX.N) acquired Catalent from Cardinal Health Inc (CAH.N) for $3.3 billion. Blackstone took Catalent public in 2014 and still owns about a fifth of the company.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: ISIL +8.9%, ACTS +7.5%, KTOS +5.9%, ERII +3.8%, SANM +3.5%, BPMX +3.4%, USAT +2.3%, SCTY +1.9%,SSL +1.9%, UNFI +1.5%, AMKR +1.4%, GMS +1.3%, EBAY +1%

Gapping down: AGTC -8.8%, FATE -7.8%, MCFT -4.9%, BUFF -4.5%, FARM -4.1%, APC -4%, PUK -3.3%, WTW -2.6%, CHK-2.6%, AEG -2.5%, OPTT -2.5%, BBL -2.4%, BHP -2.2%, BP -2.2%, HSBC -2.1%, STO -2.1%, RRGB -2%, TOT -2%, BT -2%,NFLX -1.9%, SAN -1.7%, SDRL -1.7%, MS -1.6%, LYG -1.6%, FCX -1.4%, BCS -1.4%, AU -1.4%, ING -1.3%, RDS.A -1.2%, DDD-1.2%, WFM -1.2%, RIO -1.2%, NVO -1.1%, OAS -1.1%, VOD -1%, SLB -1%, NVDA -0.9%, BAC -0.9%, CS -0.8%, HMY -0.8%