July 25, 2016
MAKOR Share Class Weekly
Good morning,
Hope you had a nice weekend !
Please find attached our weekly share class report #9.
This week, our share class book lose 0.05% globally. This loss is caused principally because of bad results of Ryanair which are affected the spread negatively.
Last week we
-Set up a long FOXA US / FOX US at 97.90%, waiting for a potential share buy back on A shares following the earnings announcement on August 3rd as they have done in the past two years.
-Set up a long RDSA LN / RDSB LN at 98.30% with a 99.50% target. It is not working so far, we would increase position at 97.50%.
-Set up a Short ATCOA SS / ATCOB SS at 110.00% with a 107.00% target.
If you want, contact us or your sales representative to receive by Bloomberg Chat the ideas we push live.
Makor Capital
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European Holding Companies - Makor’s bi-weekly monitor
Our main takes form the past two weeks:
CDI/LVMHspread continued to perform in line with our expectations and narrowed by another ~1%. The spread is currently at a level of 11%, slightly below its last three years average trading history. We recommend to take profits and exit the trade which has yielded ~7% return since our recommendation at the end of May. See current Stub value and more data in the report attached.
Renault/Nissan spreadwas the highest move over the past two weeks with discount narrowing by 4.5%, in line with our expectations (see our report from June 28 in which we recommended to go long Renault/short Nissan + SXAPEX).
Exor (EXO: IM) discount was stable and we still recommend our trade from June 29 (Short Exor/Long listed portfolio + SXIPEX).
Full report attached!
ML
W. HILL - Potential 3 way merger with RANK & 888. PUSU 21 Aug 2016....+10-12%
RYANAIR - Relief with broadly inline print and reit of FY16/17 guidance.+7-8%
ERICSSON - CEO leaving, CFO becoming temp CEO until new candidate found.+3-5%
HISCOX - Strong, PBT £206m v £153m cons with benefit from FX £87.3m.......+3%
ABERDEEN - AUM £301bn, 3% ahead of BAML led by equities AUM 6% ahead.....+2%
ABC - Strong. Group revenue growth at 16% and RabMAb product revs ahead...+2%
PDL - Sales for FY16 +3% v BAML and +6% v cons. New prodn guidance ahead..+2%
HAMMERSON - NAV +2.4% (25% discount), LTV 40%, Divi +6.3% & EPS +5.1%...+1-2%
DUFRY - Small +ve. Renewed an agreement with Zurich Airport until 2028....+1%
MINERS - Copper +0.28%, Iron Ore +2.7% with BHP OZ -0.5%, RIO OZ -0.4%....u/c
INDIVIOR - BAML preview note. Litigation and RBP6000 PIII data in focus...u/c
PHILIPS - Improving execution (margins beat) & Cleveland performed well...u/c
LVMH - Sales of Donna Karan for an EV of $650m to G-III Apparel Group.-0.5-1%
CENTRICA - Negative. Head of CMA says supply margins should fall to 1.25%.-1%
CAIRN ENERGY - We DOWNGRADE to Underperform, taking our PO to GBp 150.....-3%
RANDGOLD - Prodn impacted at Tongon mine, FY16 guidance -5% at the mine...-3%
CS
888 +3-5% Rank Group, 888 Mulling Possible Joint Offer for Will Hill
Aberdeen -2% AuM £301.4bn vs CS ests £296.7b, however net outflows worse
Cranswick +1% No's slightly better and sold sandwich business
Dufry +1% Renewed an agreement with Zurich Airport until 2028
Ericsson +2-3% Hans Vestberg steps down as CEO
Hammerson +2% NAV Growth 2.4% 727 vs CS at 725, leases signed post BREXIT
Hiscox +1-2% No's beat, guidance inline but Brexit causing volatility
Julius Baer +1-2% 1H adj EPS CHF1.84b vs est CHF1.61b, CET1 15.9% vs tgt 11%
LVMH +0.5% Set to sell Donna Karan International for $650m to G-III
Miners UNCH Copper +0.45%, Brent +0.35%, Iron Ore +3.15%, China +0.34%
Oils UNCH U.S. rig count rose by 14 to 371
Philips UNCH Q2 adj EBITA 5% beat, sales 2% miss, maintains 2016 oultook
Randgold -2% Tongon mine down for 46 days during past quarter
RPC +1% CS initiate with OUTPERFORM (Earnings Growth)
Ryanair +5-7% No warning - Net income 256m vs cons 260m, held guidance
Sartorius +1% Sales slightly better, raise guidance
Weir +1% U.S. rig count rose by 14 to 371
Will Hill +7-10% Rank Group, 888 Mulling Possible Joint Offer for Will Hill
shore
HAMMERSON-H1 sdj pft 112.6m.Divi 10.1p."0 leases signed post referendum.....+1%
HISCOX-H1 ptp 206m.Brexit has caused volatility.Trading conditions tough....-2%
CRANSWICK-Q1 revs +11%.Sandwich biz sold to Greencore.Confident on fy.......+2%
WILLIAM HILL-Confirms highly prelim approach from 888.RANK consort........+15%
RYANAIR-Happpy to keep guidance even with downside risk....................UNCH
CITYFIBRE-Performance in H1 is in line with views..........................UNCH
ABCAM-Says no immediate impact on ops poset brexit vote.Grp revs+16%........+1%
ABERDEEN -Q3 AUM +2.9% q/q asset appreciation offset outflows £8.9bn ......-1%
HAMMERSON-H1 sdj pft 112.6m.Divi 10.1p."0 leases signed post referendum.....+1%
HISCOX-H1 ptp 206m.Brexit has caused volatility.Trading conditions tough....-2%
CRANSWICK-Q1 revs +11%.Sandwich biz sold to Greencore.Confident on fy.......+2%
WILLIAM HILL-Confirms highly prelim approach from 888.RANK consort........+15%
RYANAIR-Happpy to keep guidance even with downside risk....................UNCH
CITYFIBRE-Performance in H1 is in line with views..........................UNCH
ABCAM-Says no immediate impact on ops poset brexit vote.Grp revs+16%........+1%
ABERDEEN -Q3 AUM +2.9% q/q asset appreciation offset outflows £8.9bn ......-1%
Asian equity markets are tracking Wall St gains on Friday as negative sentiment from Thursday's selloff fails to take hold. The focus is also turning to the coming week, where a busy earnings calendar will be supplemented by policy decisions from the Fed and the BOJ. Traders have also taken note of proactive remarks out of the G20 Communique over the weekend along with chatter of a potential compromise between EU and UK to minimize economic fallout from Brexit process. Japan posted the only economic data point of the session, with June merchandise trade surplus exceeding expectations. Exports fell for the 9th straight month, but the 7.4% decline was smaller than 11.3% expected and also marked the first month when exports decline slowed in 5 months. In corporate news, Verizon and Yahoo are said to be in late-stage talks, and a deal of core asset acquisition is expected to be announced before Monday open. Nintendo was down sharply after Friday's report that the company does not expect material financial impact from Pokemon.
Nikkei +0.06% Hang Seng -0.24% CSI +0.22% Shanghai +0.10%
Eur$ 1.0976 CNH 6.6865 CNY 6.6780 JPY 106.14 GBP 1.3131 CHF 0.9875 RUB 64.7695 WTI $44.16 (-0.07%)
S&P -0.03% EuroStoxx +0.04% Dax -0.07% SMI -0.05%
Macro :
- G-20 Communique to Urge U.K. Remain Close EU Partner: Balduino
- Odey Hedge Fund’s Post-Brexit Gains Evaporate: Financial News
- Schaeuble: Not Worried About Italian Banking Sector
- Kildare Fund Raises More Than $1.1B to Buy Properties: Telegraph
- IMF’s Lagarde Sees Uncertainty From Brexit, Market Volatility
- U.K. Company Profit Warnings at Highest Since 2008: Sunday Times
- Portuguese Banks Face Potential 3.9b Euro Novo Banco Bill: FT
Keep an eye on :
- AH NA : Delhaize, Ahold Complete Merger Following U.S. Clearance
- AIR FP : Air France Cabin Crews Plan to Maintain 7 Days Strike : Gagey
- ALV GY : Allianz’s Hunt Pledges Tighter Ties Between Allianz, Pimco: FT
- ALO FP : Brazil Politician Said to Have Forgiven Alstom $36m Fine: Folha
- AAPL US : Apple Fourth in China Smartphone Market in June: Counterpoint
- AZN LN : Glaxo, AstraZeneca to Confirm Will Remain in U.K.: Sunday Times
- BINCK NA : BinckBank 2Q Adjusted Profit Falls to EU7.74m From EU8.51m in 1Q
- BMPS IM : Monte Paschi Capital ‘At Risk’ in Stress Tests, Sole Reports
- BT/ LN : BT Talks on Openreach Hampered by Pension Deficit: Sky
- COFB BB : Cofinimmo Invests EU25m in Healthcare Real Estate
- DELB BB : Delhaize, Ahold Complete Merger Following U.S. Clearance
- ENGI FP : Tihange-1 Belgian Reactor Start Delayed to Aug. 8: Engie
- EOAN GY : EON’s Uniper Plans Significant Job Cuts: Rheinische Post
- FWB IM : Fastweb Evaluating Offer for PosteMobile’s Clients: Repubblica
- FCC SM : Spain’s Regulator Says 48.3% of FCC Shares Accepted Carso Offer
- FCA IM : Fiat Chrysler Recalling Almost 410,000 Vehicles: Reuters
- GSK LN : Glaxo, AstraZeneca to Confirm Will Remain in U.K.: Sunday Times
- HSY US : Reportedly Hershey Trust, the controlling shareholder, agrees to governance changes
- JOY US : Joy/Komatsu Deal May Require ’Lengthy’ Antitrust Review: CTFN
- BAER VX : Julius Baer 1H AUM Rise 4% From End 2015; Profit Increases
- LHN VX : LafargeHolcim to Sell Holcim Lanka Stake
- LEON SW : Leonteq CEO Plans to Slow Expansion From 2017: NZZ am Sonntag
- LIGHT NA : Philips 2Q Lighting Separation Costs EU45m
- LNKD US : Salesforce CEO told LinkedIn he would have paid much more than Microsoft - Re/code.net
- OR FP : L’Oreal in Pact to Buy IT Cosmetics for $1.2b
- LSE LN : BDB Group Says Deutsche Boerse/LSE HQ Must Be in Frankfurt: DPA
- LHA GY : Lufthansa Eurowings Chief to Remain in Role Past 2017: Manager
- MC FP : De Beers Puts Snap Lake Diamond Mine Up for Sale: Reuters
- MC FP : G-III to Acquire Donna Karan International from LVMH for $650m
- IAM FP : Maroc Telecom 1H EBITDA MAD8.5b vs MAD8.4b Y/y
- NYR BB : Firefighters Tackle Blaze at Nyrstar Plant in Balen, VRT Says
- P US : Pandora CEO Declines to Comment on Speculation, Liberty Report
- UG FP : Vinci, Peugeot-Led Group Said to Compete for Lyon Airport: Rtrs
- PHIA NA : Philips 2Q Adjusted Ebita Beats Estimates, Keeps 2016 Outlook
- PRS SM : Prisa 1H Net Loss EU10.5m Vs EU10.8m Profit Year Earlier
- RCS IM : RCS creditor banks will not demand early repayment of debt following Cairo Communications takeover - Il Sole 24 Ore
- RYA LN : Ryanair 1Q Net Misses Estimate; FY Forecast Repeated, Sees Risks
- SK FP : Seb Seeks to Lift 2016 Op. Result From Activity More Than 10%
- SAB LN : Activist Sandell Wades Into SABMiller Takeover Dispute
- SRT3 GY : Sartorius 2Q Rises 17%; Raises 2016 Sales, Ebitda Margin Outlook, Sartorius Stedim Raises Forecasts for 2016 on Strong Orders
- SRG IM : Snam CEO Sees Average Net Income Growth of 5%/Year: Corriere
- SDY LN : Speedy Hire Investor Toscafund Seeks General Meeting: S. Times
- SYNN VX : Syngenta Ready to Buy Assets From Possible Bayer/MON Deal: dR
- SYNN VX : Syngenta’s Fyrwald Says Brexit May Aid Faster Breakthroughs: FT
- TKA AV : Telekom Austria 2Q Ebitda Beats Est.; Confirms Rev. Forecast
- TSLA US : Tesla, SolarCity Said to Be Close to Merger Agreement: Reuters - http://bit.ly/2a5xucE
- VED LN : Vedanta, Cairn India Fall After Merger Terms Are Revised
- DG FP : Vinci, Peugeot-Led Group Said to Compete for Lyon Airport: Rtrs
- VIE FP : Veolia to Invest GBP750m in U.K. Over Next 5 Years: FT
- VOD LN : Liberty Global owner John Malone signals weakened pound increases prospects of Vodafone takeover - The Times
- VOW3 GY : Audi Plans Three E-Autos, Developing Self-Driving System: Stimme
- WMH LN : Rank Group, 888 Mulling Possible Joint Offer for William Hill
>>> Up
*ACCIONA RAISED TO BUY VS NEUTRAL AT CITI
*ENEL RUSSIA RAISED TO HOLD AT RENAISSANCE CAPITAL
*G4S RAISED TO SECTOR PERFORM AT RBC CAPITAL
*KONECRANES RAISED TO BUY AT NORDEA
*VERBUND RAISED TO BUY VS HOLD AT SOCGEN
>>> Down
*AIR FRANCE-KLM CUT TO SELL VS HOLD AT SOCGEN
*ELRINGKLINGER CUT TO REDUCE VS ADD AT ALPHAVALUE
*G4S CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*LUFTHANSA CUT TO NEUTRAL VS BUY AT UBS
*LUNDBECK CUT TO HOLD VS BUY AT DNB
*PGS CUT TO REDUCE VS ADD AT ALPHAVALUE
>>> PT Change
>>> Initiaition
*BASIC-FIT RATED NEW BUY AT ING; PT AT EU20.50
*RPC GROUP RATED NEW OUTPERFORM AT CREDIT SUISSE, PT 1025P
*SYROS PHARMACEUTICALS RATED NEW MARKET OUTPERFORM AT JMP SECS
*VAN LANSCHOT RATED NEW BUY AT UBS, PT EU21.7
*VAN LANSCHOT RATED NEW NEUTRAL AT GOLDMAN, PT EU20
>>> Call
Asian Mid-session Market Update: Japan trade surplus wider than expected; G20 vows to support growth; Verizon on track to announce Yahoo deal
***Economic Data***
- (JP) JAPAN JUNE TOTAL MERCHANDISE TRADE BALANCE: ¥692.8B V ¥474BE; ADJUSTED TRADE BALANCE: ¥335B V ¥244BE
***Index Snapshot (as of 04:30 GMT)***
- Nikkei225 +0.4%, S&P/ASX +0.5%, Kospi -0.1%, Shanghai Composite +0.2%, Hang Seng -0.3%, Sep S&P500 flat at 2,166
***Commodities/Fixed Income***
- Aug gold -0.5% at $1,317/oz, Sep crude oil -0.1% at $44.13/brl, Sep copper +0.2% at $2.24/lb
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6860 V 6.6669 PRIOR; first weaker Yuan fix in 4 sessions
- (CN) PBOC to inject CNY150B in 7-day reverse repos
- (JP) BOJ offers to buy ¥375B in 1-3yr JGBs, ¥440B in 3-5yr JGBs, ¥430B in 5-10yr JGBs
- (AU) Australia MoF (AOFM) sells A$1B in 5.50% 2023 Bonds; avg yield: 1.7343%; bid-to-cover: 3.0x
***Market Focal Points/FX***
- Asian equity markets are tracking Wall St gains on Friday as negative sentiment from Thursday's selloff fails to take hold. The focus is also turning to the coming week, where a busy earnings calendar will be supplemented by policy decisions from the Fed and the BOJ. The former is expected to be very careful in managing expectations of fresh tightening as it awaits more evidence of minimal impact from Brexit, while the latter is anticipated to unveil some further policy stimulus. Traders have also taken note of proactive remarks out of the G20 Communique over the weekend along with chatter of a potential compromise between EU and UK to minimize economic fallout from Brexit process. In FX majors, USD/JPY rose about 60pips to test 106.70 before a late-session retreat, AUD/USD traded in about a 25pip range below 0.7480, and NZD/USD rallied above 0.7010 before the technically-driven retreat below 0.6960. Gold prices have remained under pressure since Friday below 1,325, and PBoC Yuan fix was weaker for the first time in 4 sessions.
- G20 meeting in Chengdu, China yielded a communique that promised to use "all policy tools" to boost growth. Officials stated the G20 nations are "well positioned to proactively address the potential economic and financial consequences", though Brexit as well as "geopolitical conflicts, terrorism and refugee flows" have added to global risks. Guardian reported that EU officials are considering a 7-year exemption for UK on freedom of movement while allowing it to retain access to single market - a pact that would assuage the immigration component of Brexit supporters and concerns over economic impact from Brexit opponents. Also of note in Europe, Italian Fin Min Padoan acknowledged there was a "limited" number of key banks with large amount of non-performing loans for which market-based solutions are being considered, but also reiterated that impact on Italian banks' balance sheets of a prolonged recession is, on aggregate, much less than feared, adding the worries over Italian banking problem are overblown.
- Japan posted the only economic data point of the session, with June merchandise trade surplus exceeding expectations. Exports fell for the 9th straight month, but the 7.4% decline was smaller than 11.3% expected and also marked the first month when exports decline slowed in 5 months. Imports decline was also slightly smaller than expected but down for the 18th straight month. BOJ's much anticipated policy meeting is widely expected to produce a fresh round of stimulus - in fact, one report saw 32 out of 41 analysts forecast an easing, the highest percentage anticipating a move since BOJ Gov Kuroda's first decisions 3 years ago. A local Nikkei report however saw some BOJ officials express reluctance to ease more, deeminng the current mechanisms behind inflation as working properly. Japan Econ Min Ishihara remarked that JPY trading has been calmer now after a period of strength. Cabinet Office has also issued a monthly report maintaining economic assessment for July but cutting its view of business conditions due to Brexit worries.
- In China, a PBoC policy adviser said the economy can still achieve 2016 GDP target of over 6.5% but noted building downward pressure. A separate report from China Academy of Social Sciences (CASS) warned that home price growth may start to slow in the coming months after rapid increase in the first half as inventories in 2nd and 3rd tier cities expand.
- In corporate news, Verizon and Yahoo are said to be in late-stage talks, and a deal of core asset acquisition is expected to be announced before Monday open. Nintendo was down sharply after Friday's report that the company does not expect material financial impact from Pokemon. In Australia, Woolworths saw solid gains after announcing it was closing a 17 loss-making stores and laying off as many as 500 staff.
***Equities***
US equities / ADRs:
- YHOO: Verizon said to have agreed to pay nearly $5B for Yahoo core assets; Deal expected to be announced before Monday open - financial press
- HSY: Reportedly Hershey Trust, the controlling shareholder, agrees to governance changes - press
Notable movers by sector:
- Consumer discretionary: Alibaba Pictures Group 1060.HK -2.8% (profit warning); Hotel Shilla Co 008770.KR -4.3% (Nomura cuts to Reduce)
- Consumer staples: Lianhua Supermarket Holdings 980.HK -4.1% (profit warning); Asaleo Care AHY.AU -1.3% (guidance); Woolworths Limited WOW.AU +7.1% (To close under guidance)
- Financials: Haitong Securities 6837.HK +0.2% (H1 result); Hana Financial Group 086790.KR +6.9% (JPMorgan raised to Overweight); WesFarmers WES.AU +0.7% (Q4 result)
- Industrials: Qinhuangdao Port 3369.HK -16.4% (profit warning); CITIC 267.HK -0.7% (profit warning); Mazda Motor Corp 7261.JP +6.1% (Q1 result speculation); Fujitsu General 6755.JP +2.2% (Q1 result); Dongfeng Motor 489.HK +5.0% (Credit Suisse said its JV raised sales target); Nidec Corp 6594.JP +4.5% (Q1 result)
- Technology: BAIOO Family Interactive 2100.HK -2.5% (profit warning); Nintendo Co. 7974.JP -17.5% (impact from Pokemon Go to be limited)
- Materials: China Aluminum Cans Holdings 6898.HK +3.0% (positive profit alert); OJI Holdings Corp 3861.JP +3.8% (Q1 result speculation); Newcrest Mining NCM.AU -2.5% (Q4 production result); Sims Metal Management SGM.AU -3.3% (Macquarie cuts to Underperform)
- Energy: Sinopec Engineering Group Co 2386.HK -5.0% (profit warning); China Oilfield Services 2883.HK -1.3% (profit warning)
Weekly Update
Dow +0.29% S&P +0.61% Nasdaq +1.40% Russell +0.63% Brazil +2.56% Nikkei +1.47% Hang Seng +1.41% CSI -1.56% Shanghai -1.36% EuroStoxx +0.46% FTSE +0.92% CAC +0.20% Dax +0.80% Ibex+0.81% MIB +0.18% SMI +0.47%
Political developments and quarterly earnings were the main focus this week, although incessant speculation surrounding foreign, Central Bank intervention swung investor risk sentiment. Thursday broke a string of record closing highs on the DJIA and S&P500, but by Friday the S&P was back at all-time highs. The Republican Party gathered in Cleveland to officially nominate Donald Trump as their presidential candidate, while in Turkey an attempted coup by the military was put down, adding to the endless turmoil in the Middle East. Crude prices retreated back below $45, marking six weeks of contraction after key benchmarks topped out above $50 in early June. About a fifth of the S&P500 have reported quarterly earnings, with average profits a bit lower y/y and revenue a shade higher. While tech and financials have been generally impressive, consumer discretionary stalwarts have hit a wall, and Starbucks CEO went as far as to cite deteriorating global conditions - terrorism, and Brexit included - as driving a cooling in consumer confidence. After another solid swath of US economic data, US Treasury prices moved marginally higher, but yields largely consolidated just below the recent one-month highs. For the week, the DJIA gained 0.3%, the S&P500 rose 0.6% and the Nasdaq added 1.4%.
Macro :
- G-20 Communique to Urge U.K. Remain Close EU Partner: Balduino
- Odey Hedge Fund’s Post-Brexit Gains Evaporate: Financial News
- Schaeuble: Not Worried About Italian Banking Sector
- Kildare Fund Raises More Than $1.1B to Buy Properties: Telegraph
- IMF’s Lagarde Sees Uncertainty From Brexit, Market Volatility
- U.K. Company Profit Warnings at Highest Since 2008: Sunday Times
- Portuguese Banks Face Potential 3.9b Euro Novo Banco Bill: FT
Keep an eye on :
- AH NA : Delhaize, Ahold Complete Merger Following U.S. Clearance
- AIR FP : Air France Cabin Crews Plan to Maintain 7 Days Strike : Gagey
- ALV GY : Allianz’s Hunt Pledges Tighter Ties Between Allianz, Pimco: FT
- ALO FP : Brazil Politician Said to Have Forgiven Alstom $36m Fine: Folha
- AAPL US : Apple Fourth in China Smartphone Market in June: Counterpoint
- AZN LN : Glaxo, AstraZeneca to Confirm Will Remain in U.K.: Sunday Times
- BMPS IM : Monte Paschi Capital ‘At Risk’ in Stress Tests, Sole Reports
- DELB BB : Delhaize, Ahold Complete Merger Following U.S. Clearance
- ENGI FP : Tihange-1 Belgian Reactor Start Delayed to Aug. 8: Engie
- EOAN GY : EON’s Uniper Plans Significant Job Cuts: Rheinische Post
- FWB IM : Fastweb Evaluating Offer for PosteMobile’s Clients: Repubblica
- FCC SM : Spain’s Regulator Says 48.3% of FCC Shares Accepted Carso Offer
- FCA IM : Fiat Chrysler Recalling Almost 410,000 Vehicles: Reuters
- GSK LN : Glaxo, AstraZeneca to Confirm Will Remain in U.K.: Sunday Times
- HSY US : Reportedly Hershey Trust, the controlling shareholder, agrees to governance changes
- JOY US : Joy/Komatsu Deal May Require ’Lengthy’ Antitrust Review: CTFN
- LEON SW : Leonteq CEO Plans to Slow Expansion From 2017: NZZ am Sonntag
- LNKD US : Salesforce CEO told LinkedIn he would have paid much more than Microsoft - Re/code.net
- OR FP : L’Oreal in Pact to Buy IT Cosmetics for $1.2b
- LHA GY : Lufthansa Eurowings Chief to Remain in Role Past 2017: Manager
- MC FP : De Beers Puts Snap Lake Diamond Mine Up for Sale: Reuters
- NYR BB : Firefighters Tackle Blaze at Nyrstar Plant in Balen, VRT Says
- P US : Pandora CEO Declines to Comment on Speculation, Liberty Report
- UG FP : Vinci, Peugeot-Led Group Said to Compete for Lyon Airport: Rtrs
- PRS SM : Prisa 1H Net Loss EU10.5m Vs EU10.8m Profit Year Earlier
- RCS IM : RCS creditor banks will not demand early repayment of debt following Cairo Communications takeover - Il Sole 24 Ore
- SAB LN : Activist Sandell Wades Into SABMiller Takeover Dispute
- SRG IM : Snam CEO Sees Average Net Income Growth of 5%/Year: Corriere
- SDY LN : Speedy Hire Investor Toscafund Seeks General Meeting: S. Times
- SYNN VX : Syngenta Ready to Buy Assets From Possible Bayer/MON Deal: dR
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Boscolo debt may be acquired by Varde; company may attract new majority shareholder via EUR 80m capital increase
Creditor banks of Italian hotel chain Boscolo could sell their debt to the Varde fund, Italian language daily Il Corriere della Sera reported.
The unsourced article said that creditor banks could sell EUR 240m debt for EUR 210m. The total bank debt is EUR 350m, it added. The Varde offer is of particular interest to Unicredit, BPM and BMPS, which hold over half of the bank debt, the item noted.
The report also said Boscolo advisor Mediobanca is working on finding a majority partner for the hotel chain. The new partner would take the stake via a EUR 80m capital increase, it added.
Previous reports have pointed to Starwood as the most likely buyer.
Boscolo closed 2015 with turnover of EUR 185m and EBITDA of EUR 35m. The EBITDA was above the planned target of EUR 32m, the report noted.
The original article appeared in print; Page 40
Source Il Corriere della Sera
New drugs aim to kill cancer cells by destabilising their DNA
Drugs that selectively destroy cancer cells by destabilising their DNA will be developed in a £6m project funded by the Wellcome Trust at the University of Sussex, in collaboration with AstraZeneca.
The initiative is part of a wider move by oncology researchers to discover ways to stop the normal evolution of tumours into more lethal forms that resist treatment.
The Sussex research aims at the biochemical network within cells that biologists call the DNA damage response — DDR — system.
The damage response system detects and repairs breaks in DNA that occur frequently because of environmental factors and chemical stress, as well as random errors as cells divide.
Cancer cells already have a somewhat degraded DNA damage response system, which enables them to mutate, proliferate and evolve rapidly.
The aim is to destabilise the process further so that cancer cells cannot repair the DNA damage — and the resulting genetic mayhem kills them.
Healthy cells can resist this partial destabilisation.
“Within four years we aim to have at least three new drugs in development, which exploit the defects in our DNA in order to kill cancer cells,” said Professor Simon Ward, head of Sussex’s Drug Discovery Centre. “They will be more effective treatments, very specifically targeted at genetic subsets of the population, which will involve less side-effects for patients.”
New DDR drugs could also increase the effectiveness of traditional chemotherapy and radiation treatment, which work by causing high levels of DNA damage, enabling oncologists to destroy tumours with smaller doses.
At present only one DDR drug is on the market: AstraZeneca’s Lynparza, which was approved for some genetic types of ovarian cancer in 2014 and is showing promising results in clinical trials against advanced prostate cancer.
Lynparza works by inhibiting the action of an enzyme called Parp that is involved in DNA repair.
AstraZeneca is developing a pipeline of compounds that will work across several different DDR biochemical pathways, on their own or in combination with other anticancer drugs. These involve blocking enzymes with names such as WEE1, ATR, ATM as Aurora B, as well as Parp.
Each product will be targeted at a specific genetic group of patients but estimates suggest that the DDR approach as a whole could treat as many as 40 per cent of cancers, said Susan Galbraith, head of AstraZeneca’s innovative medicines unit.
The company will contribute a range of technical, scientific and managerial support to the Sussex project. In exchange AstraZeneca will have first right to negotiate commercial development of any compounds that are discovered. “This sort of collaboration is extremely important for our cancer drug discovery programme,” said Dr Galbraith.