Reportedly German Bundesbank was against the latest ECB stimulus package - press
- Bundesbank said to be open to debate on some measures
- Concerned about a potential "Doom Loop" of high expectations followed by disappointment and additional stimulus measures becoming less effective
>>> Up
>>> Down
>>> Reiteration
>>> initiation
Gapping down
In reaction to disappointing earnings/guidance: CMLS -25.9%, VMEM -19%,SDPI -9.6%, RUN -8.1%, RUN -8.1%, ZUMZ -7.9%, LOCO -5.9%, MED -5.8%,CVGI -4.6%, BDSI -4.4%, GST -3.9%, ( to suspend the payment of cash dividends on its preferred equity commencing April 2016 ), ERI -3.8%, WATT-3.7%, EVLV -3.5%, CGIX -2.2%, GNK -2.1%, MUX -1.5%, IMOS -1.3%, FNV-0.8%, TROV -0.8%
Select metals/mining stocks trading lower: GOLD -1.3%, NEM -1.3%, ABX-1.2%, BHP -1.1%, GFI -0.7%
Other news: FXCM -23.1% (FXCM and Leucadia National (LUK) enter into MOU to amend terms of previously amended & restated credit agreement, also released earnings), QUIK -10.6% (proposed public offering of common stock for an undisclosed amount), IMMY -6.6% (announces proposed public offering of common stock), FOXF -3.6% (ox Factory announces 2.5 mln secondary public offering & 500,000 repurchase of common stock), MT-1.8% (to issue of 1,262,351,531 new shares at a subscription price of EUR2.20 per new share)
Analyst comments: FRPT -3.3% (downgraded to Neutral from Buy at Goldman), AKS -3.1% (initiated with an Underperform at Credit Suisse), NE-2.9% (downgraded to Sell from Neutral at Goldman), SGY -2.4% (downgraded to Underweight at Simmons)
In reaction to disappointing earnings/guidance: CMLS -25.9%, VMEM -19%,SDPI -9.6%, RUN -8.1%, RUN -8.1%, ZUMZ -7.9%, LOCO -5.9%, MED -5.8%,CVGI -4.6%, BDSI -4.4%, GST -3.9%, ( to suspend the payment of cash dividends on its preferred equity commencing April 2016 ), ERI -3.8%, WATT-3.7%, EVLV -3.5%, CGIX -2.2%, GNK -2.1%, MUX -1.5%, IMOS -1.3%, FNV-0.8%, TROV -0.8%
Select metals/mining stocks trading lower: GOLD -1.3%, NEM -1.3%, ABX-1.2%, BHP -1.1%, GFI -0.7%
Other news: FXCM -23.1% (FXCM and Leucadia National (LUK) enter into MOU to amend terms of previously amended & restated credit agreement, also released earnings), QUIK -10.6% (proposed public offering of common stock for an undisclosed amount), IMMY -6.6% (announces proposed public offering of common stock), FOXF -3.6% (ox Factory announces 2.5 mln secondary public offering & 500,000 repurchase of common stock), MT-1.8% (to issue of 1,262,351,531 new shares at a subscription price of EUR2.20 per new share)
Analyst comments: FRPT -3.3% (downgraded to Neutral from Buy at Goldman), AKS -3.1% (initiated with an Underperform at Credit Suisse), NE-2.9% (downgraded to Sell from Neutral at Goldman), SGY -2.4% (downgraded to Underweight at Simmons)
Gapping up
In reaction to strong earnings/guidance: THLD +65%, SSKN +29.1%, PFNX+21.9%, SNC +17.6%, SGRY +15.8%, ULTA +13.9%, (Ulta Salon also announces $200 mln accelerated share repurchase plan), NVEE +13.2%,FNSR +12.8%, MMI +9.6%, BOJA +9.6%, KTOS +7.9%, CNTY +7.7%, ATHX+6%, SYN +5.4%, FPRX +5.2%, PGNX +3.6%, CMTL +2.6%, ABTL +1.4%, GSVC+1.3%, PAY +0.8%, VNET +0.8%, AGFS +0.6%, VRNG +0.5%
M&A news: FCTY +30.6% (to be acquired by MidFirst Bank for $11.22 per share in cash), LPSB +10% (to be acquired by Horizon Bancorp (HBNC) for $17.50 per share), JMEI +1.9% (formed special committee to consider non-binding 'going private' proposal of $7/ADS that the Board received on February 17)
Select EU financial related names showing strength: DB +4.5%, CS +4.1%,SAN +4.1%, ING +3.9%, BBVA +3.3%, RBS +3.3%
Select oil/gas related names showing strength: SDRL +8.7%, SN +5.7%, WLL+4.4%, CHK +3.5%, COP +2.2%, DVN +1.9%
Other news: SPPI +16.8% (receives notification from the FDA of the grant of approval of the NDA for EVOMELA for Injection for use in two indications),BCEI +2.9% (elected to draw down $209 million on its credit facility), NFLX+2.5% (still checking, may be rebounding after yesterday's underperformance), SUNE +1.7% (names Ilan Daskal as CFO designee, effective no later than April ), SNY +1.4% (Regeneron Pharma and Sanofi report Topline Results of Phase 3 Monotherapy Study met primary endpoint),JCOM +1.2% (responds to Citron's report, calling it 'factually incorrect and wrongly critical'), AMGN +0.5% (supplemental biologics license application accepted by the FDA for expanded use of Enbrel to treat pediatric patients with chronic severe plaque psoriasis)
Analyst comments: OAS +5% (upgraded to Neutral from Sell at Goldman),BETR +3.9% (upgraded to Buy from Neutral at Goldman), X +1.7% (initiated with an Outperform at Credit Suisse ), APC +1.6% (upgraded to Buy from Neutral at Goldman), CVX +1% (upgraded to Neutral from Sell at Goldman)
In reaction to strong earnings/guidance: THLD +65%, SSKN +29.1%, PFNX+21.9%, SNC +17.6%, SGRY +15.8%, ULTA +13.9%, (Ulta Salon also announces $200 mln accelerated share repurchase plan), NVEE +13.2%,FNSR +12.8%, MMI +9.6%, BOJA +9.6%, KTOS +7.9%, CNTY +7.7%, ATHX+6%, SYN +5.4%, FPRX +5.2%, PGNX +3.6%, CMTL +2.6%, ABTL +1.4%, GSVC+1.3%, PAY +0.8%, VNET +0.8%, AGFS +0.6%, VRNG +0.5%
M&A news: FCTY +30.6% (to be acquired by MidFirst Bank for $11.22 per share in cash), LPSB +10% (to be acquired by Horizon Bancorp (HBNC) for $17.50 per share), JMEI +1.9% (formed special committee to consider non-binding 'going private' proposal of $7/ADS that the Board received on February 17)
Select EU financial related names showing strength: DB +4.5%, CS +4.1%,SAN +4.1%, ING +3.9%, BBVA +3.3%, RBS +3.3%
Select oil/gas related names showing strength: SDRL +8.7%, SN +5.7%, WLL+4.4%, CHK +3.5%, COP +2.2%, DVN +1.9%
Other news: SPPI +16.8% (receives notification from the FDA of the grant of approval of the NDA for EVOMELA for Injection for use in two indications),BCEI +2.9% (elected to draw down $209 million on its credit facility), NFLX+2.5% (still checking, may be rebounding after yesterday's underperformance), SUNE +1.7% (names Ilan Daskal as CFO designee, effective no later than April ), SNY +1.4% (Regeneron Pharma and Sanofi report Topline Results of Phase 3 Monotherapy Study met primary endpoint),JCOM +1.2% (responds to Citron's report, calling it 'factually incorrect and wrongly critical'), AMGN +0.5% (supplemental biologics license application accepted by the FDA for expanded use of Enbrel to treat pediatric patients with chronic severe plaque psoriasis)
Analyst comments: OAS +5% (upgraded to Neutral from Sell at Goldman),BETR +3.9% (upgraded to Buy from Neutral at Goldman), X +1.7% (initiated with an Outperform at Credit Suisse ), APC +1.6% (upgraded to Buy from Neutral at Goldman), CVX +1% (upgraded to Neutral from Sell at Goldman)
* Equity Flows
- Europe: $3.3bn outflows (5 straight weeks = worst since Oct’14)
- Japan: $1.0bn outflows (largest in 6 weeks)
- EM: $1.7bn inflows (first inflows in 19 weeks) (largest since Jul’15)
- US: first inflows in 10 weeks ($3.9bn)
- By sector: healthcare outflows in 9 of past 10 weeks ($0.5bn); consumer funds see $0.7bn inflows (largest in 19 weeks); utilities eke out 9 straight weeks of inflows
* Fixed Income Flows
- $2.9bn inflows to HY bond funds (largest 3-week inflows in 3years)
- First inflows to bank loan funds in 19 weeks ($0.4bn) (largest since Apr’15)
- $1.1bn inflows to EM debt funds (largest in 12 months)
- 25 straight weeks of inflows to Munis ($0.5bn)
- $1.4bn outflows from Govt/Tsy funds (3 straight weeks)
- $1.8bn inflows to IG bond funds (largest in 8 weeks)
- 4 straight weeks of inflows to TIPS ($0.4bn)
* Asset Class Flows
- Equities: $4.5bn inflows (largest in 10 weeks) (note divergence between $7.5bn ETF inflows & $3.0bn mutual fund outflows)
- Bonds: $6.1bn inflows (largest since Apr’15)
- Precious metals: $1.0bn inflows (9 straight weeks = longest
- streak since Oct’12)
ML
* PETROFAC - Noryala sells 5m shares, $67m; UBS sole bookrunner..............
OLD MUTUAL - Confirms will split into 4 parts, AOP 1% ahead, div inline.+4-5%
SPIE - EBITDA inline, div 0.5/shr. Guides '16 EBITA 3% ahead of cons....+2-3%
SODEXO - To replace ALO in CAC 40 on 18th MAR, 2.55m shrs to buy, 3.5adv..+2%
B.CUCINELLI - EBITDA inline, div EU0.13/shr, sees double digit growth '16.+2%
ROCHE - Positive read from Sanofi data, drug would compete with Actemra.+1-2%
DEUTSCHE - Spec in talks with JPM/GS & Citi to sell c.€1tn of swas book...+1%
ORANGE/BOUYGUES - Xavier Niel says high probability deal will go through..+1%
FINMECCANICA - CEO saying in FT results will be good with nice surprises..+1%
SANOFI - Sarilumab data out in RA, concerns on neutropenia side effects...u/c
MARKS & SPENCER - We DOWNGRADE to Underperform, PO cut to 385p from 480p..-1%
ALSTOM - SW FP to replace in CAC 40 on 18th MAR, 4m shrs to sell, 1.15 adv-2%
JDW - Inline but flags cost pressure. Cons sees 6% EBIT decline in 2H.....-2%
COMPUTACENTER - FY15 inline, EPS small beat but div light at 21.4p v 22.3p-3%
CS:
Autos M/P China names trading +3% following chatter of more stimulus
Autos M/P China names trading +3% following chatter of more stimulus
Banks +2-3% ECB package positive for near term sentiment
Brunello +2-3% EBITDA inline, net income inline, commentary reads well
Computacenter M/P Pre-tax profit £86.9m (cons 85.6m), good cash generation
Dialog sem +1-2% Apple is expected to unveil 4-inch iPhone and updated iPad
Flughafen +1-2% Revs inline, EBITDA ahead, divi 15 + spec divi of 16
JD Wethers +2-3% Revs inline, divi inline, LFL +2.9%, outlook reasonable
Miners +2% LME Metals all up c.1%, US peers strong overnight
Oils +1% WTI +3.5% from our close
Old Mutual +4% Co has announced the break-up of the group into 4 grps
Parmalat -5% Revs light, EBITDA light, Divi light, guidance light
Renault unch CS D/G to NEUTRAL on valuation
SAF Holland +1-2% FY sales inline, ebit €94m small ahead, guidance light
Spie M/P Net debt slightly better and guidance in line
Sthree M/P UK contract all performing well. Energy still poor
Swatch -1% Investor day mixed, -ve EU, +ve Asia, FX still an issue
Numis:
* AMEC FOSTER WHEELER -1%; Avoid - Bad news is out there, but no catalyst for progress, Times
Numis:
* AMEC FOSTER WHEELER -1%; Avoid - Bad news is out there, but no catalyst for progress, Times
* AVANTI COMMS +2%; Wins first order Hylas 4 Capacity
* AVIVA +1%; Times says Buy, Telegraph says Hold.
* CAMBIAN -20%; Results will be “slightly” below guidance, temporary waiver with banks
* COMPUTACENTER mkt; Numbers inline, sees year of further progress
* EQUINITI +1%; BUY, value emerges, Investors Chronicle
* G4S mkt; Sell - exposed to looming debt deadlines – Telegraph (-15% last 2 days)
* JD WETHERSPOONS mkt; Interims in line, usual Tim Martin comments
* MARSHALLS +3%; Finals, nos small beat, very +VE outlook
* OILS +1-2%; Brent $40.79 vs LDN close $39.85, WTI $38.70 vs $37.25, US names strong after $ depreciation and EIA data suggestion US gasoline consumption set for 4th weekly gain to highest levels since September. UK names had agressive sell-off into close.
* OLD MUTUAL +3%; PTP £1.7bn, to separate EM, Wealth, Nedbank and Asset management by end 2018
* PARTNERSHIP ASSURANCE +1%; PBT £49.8m, sees merger complete by early April
* PETROFAC +2%; Develops 'Duty Holder' model for N. Sea Anasuria JV FPSO management. Initially a 5yr contract for $250m and 65 jobs.
* SAFESTORE +2%; Agreed option to buy Space Maker the 9th largest self storage portfolio in UK. £43.0m initial consideration + £1.4m deferred. Funded from existing debt facilities. NIY of 8.7%
* SHAWBROOK +1%; BUY, tapping into the SME credit gap, Investors Chronicle
* STHREE +2%; No’s inline, UK weak vs strong Europe/US, outlook mixed, been weak
* WHITBREAD +1%; BUY, looks attractive as long term potential, Investors Chronicle
Mainfirst:
*OLD MUT-To separate EM,Wealth,Nedbank and Asset Mgmt Units......+1.5%
Mainfirst:
*OLD MUT-To separate EM,Wealth,Nedbank and Asset Mgmt Units......+1.5%
*NESTLE-In talks with Nerios over sale of Quezac - Figaro........+0.5%
*SODEXHO-To replace Alstom in CAC40 says Les Echos...............+0.5%
*EDF-French Auditor says finances are fragile - Le Monde.........-0.5%
*AIRBUS-Head Bregier sees no slow down in air traffic,exps grth..+0.5%
*ZURICH AIRPORTS-Ebit 274.6m(265.3),Ebitda 502.8m(490.5),Div 15..+1%
*CARREFOUR-Says it is not in talks to invest in Victory(Israel)..+1%
*DBK-JPM,GS,Citi may buy DBK's swaps book,two-thirds sold........+1%
*INDITEX-Plans to open first store in Vietnam this year..........U/C
*CUCINELLI-FY Ebitda 69.1m(69.1),Net Inc 33m(33.05),Divi 13c.....+1%
*SAF HOLLAND-Sales 243.2m(250),Ebit 20.4m(18.8),outlook 2016 ok..+2.7%
ShoreCap:
JD WETHERSPOON - rev +6.2% LfL +2.9%,sees slightly more favourable H2.......UNCH
ShoreCap:
JD WETHERSPOON - rev +6.2% LfL +2.9%,sees slightly more favourable H2.......UNCH
STHREE - pft +10% YoY,strong continent,signs of slowing UK,remains confident.-1%
COMPUTACENTER - sees a more challenging UK,sees H1 profit below expec........-5%
CIRCASSIA - encouraging future outlook for portfolio,losses widen to £50m....-1%
JUST RETIREMENT - H1 op pft 65.2m.New Biz sales +50%.Merger on track........UNCH
PARTNERSHIP - Fy op pfts 40m.Sees merger complete early April...............UNCH
OLD MUTUAL - To Separate EM, Wealth, Nedbank, Asset Mgmt Units...............+3%
MARSHALLS - Says trading conditions positive.2016 started well...............+2%
PETROFAC - appointed duty holder for Anasuria,contract worth $250m...........+2%
CAMBIAN - sees FY slightly lower than g'dance,in breach of convenants.......-10%
We add RDShell to the Conviction Buy List and remove Total
Shell has the joint highest 2016E dividend yield in the sector (with BP), and we believe this will be driven lower as cash coverage of the dividend grows substantially over the coming 12 months due to cost cutting, greater capital discipline, the realization of synergies, disposals and a rising oil price. Total remains Buy rated but comes off the Conviction List as we see greater upside potential in RDShell. Statoil remains CL-Sell; we see more challenged FCF dynamics and risks related to European gas prices.