>>> RL -6% on investor Day News - New CEO Announce big restructuring time to Buy

for me it was the mkt was expecting even if details on sales are not good, but not really a surprise...you are not playing numbers on this one...

on a technical point of view : RL US - divergence between price and tech indicator (price moving lower but indicators higher) suggest the move lower is exhausted and also attempting to base near the 61.8% fib retrace at 89

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: VRX -16.2%, COVS -11.6%, MIK -7.1%, SIGM -7.1%, CASY -2%

M&A news: YHOO -1.5% (Verizon (VZ) bidding ~$3 bln for Yahoo's core internet assets, according to the WSJ)


Select metals/mining stocks trading lower:AG -2.5%, GG -2.1%, NEM -2%, GDX -1.8%, VALE -1.6%, ABX -1.5%, SLV-1.3%, FCX -1.3%, IAG -1.3%, GOLD -1%, .

Other news: DRYS -38.6% (After filing 8k which covered previously released Q1 results and updated details regarding liquidity), ESI -20.9% (ordered by the Department of Education to enhance its finances, according to the WSJ), VBLT -11.1% (announces a 4.36 mln share registered direct offering of ordinary shares to institutional investors priced at $5.50/share), MSTX-10.2% (delays the anticipated timing for announcement of top-line data from its Phase 3 clinical study of vepoloxamer in patients with sickle cell disease), ALXN -9% (announces topline results from Phase 3 REGAIN Study of Eculizumab in patients with refractory generalized myasthenia gravis - REGAIN study missed its primary endpoint), BIIB -8.2% (reports top-line results from the Phase 2 Synergy study evaluating opicinumab missed its primary & secondary endpoints), ENVA -7.8% (announces the completion of a prelim assessment of the proposed rule regarding small-dollar loans issued on June 2nd by the CFPB, estimates rev decline of 30-40% if proposed ruling is adopted), CTLT -6.2% (launches secondary offering of 10 mln common shares by selling shareholders), TRU -3.1% (commences ~15.6 mln common stock offering by selling stockholder),TLLP -2.4% (prices upsized offering of 5,500,000 common units at $47.13 per common unit)

Analyst comments: JBL -3.1% (downgraded to Sell from Neutral at Goldman), DISCA -2.5% (downgraded to Underperform from Mkt Perform at Bernstein), RLYP -1.9% (downgraded to Underweight from Equal-Weight at Morgan Stanley), PEG -1.8% (downgraded to Underperform from Neutral at BofA/Merrill), WERN -1.5% (downgraded to Hold from Buy at BB&T Capital Mkts), GDDY -1.1% (downgraded to Neutral from Buy at Citigroup)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: GIGA +13.2%, UNFI +10.7%, VNCE+5.4%, NAV +2%, XTLY +1%, HDS +0.8%, THO +0.6%

M&A news: LDRH +63.6% (to be acquired by Zimmer Biomet Holdings (ZBH) for $37.00/share in cash), AXLL +6% (Lotte Chemical submits bid to acquire Axiall for more than $2.6 bln, according to reports)

Select financial related names showing strength: DB +2.3%, SAN +2%, ING+1.5%, BCS +1.5%, MS +1%

Select oil/gas related names showing strength: CHK +3.3%, WLL +3.2%,SDRL +2.9%, TOT +2.2%, BP +1.2%

Other news: SRPT +31.5% (discloses FDA request that Co provide dystrophin data from biopsies already obtained from the ongoing confirmatory study of eteplirsen), DCTH +21.2% (enters into security purchase agreement with an institutional investor to issue $35 mln in senior convertible notes & related common stock purchase warrants), WGBS +13.5% (enters into an exclusive distribution agreement in Japan with Takara Bio), CTIC +12.3% (presents LT follow up data for Pacritinib showing reductions in spleen volume and symptom burden), Z +10.5% (settlement agreement with News Corp), ZG+9.7% (settlement agreement with News Corp), AEHR +7.5% (announces over $4.5 mln in orders of its FOX-XP production test cell; revs from these sales are expected to continue through early 2017), RGLS +5.4% (announces top-line results from the primary endpoint analysis of one of the company's ongoing phase II studies of RG-101 for the treatment of hepatitis C virus infection), IBN +3.4% (reports of additional funding received), RDS.A +3.4% (hosts Capital Markets Day; sees better than expected synergies from BG acquisition)

Analyst comments: MRO +3.1% (initiated with a Buy at KLR Group), WDC+1.7% (upgraded to Buy from Neutral at Mizuho), CCL +1.4% (initiated with a Buy at Sterne Agee CRT)

(TechCrunch) Smartphone sales growth will drop to single digits in 2016, says Ga


Smartphone sales growth will drop to single digits in 2016, says Gartner

Analyst Gartner is expecting a big drop in smartphone sales growth, projecting the market will shrink from 14.4 per cent growth in 2015 to just 7 per cent in 2016 — with only 1.5 billion smartphone units being shipped globally this year.

The high watermark for smartphone sales was back in 2010, when Gartner notes the market grew 73 per cent.

The signs of a slowdown in the global smartphone market have been clear for more than a year, with mature Western markets saturated and China’s growth engine also slowing as demand has topped out. Incentives for consumers to upgrade their devices yearly have also softened, with Gartner noting that new devices offer only incremental upgrades over existing hardware and carriers have been moving away from subsidizing upgrades.

In emerging markets it says the average lifetime of premium phone is between 2.2 and 2.5 years, while basic mobiles have an average lifetime of three years and up.

Gartner sees the biggest remaining opportunity for smartphone growth in India, noting that sales of feature phones — aka dumbphones — accounted for a majority (61 per cent) of total mobile device sales last year, leaving plenty of scope for upgrades as smartphones continue to become more affordable.

It is estimating 139 million smartphones will be sold in India this year, growing 29.5 per cent year-over-year. It notes the average selling price of mobiles in the country remains below $70, and it expects smartphones priced under $120 to continue to contribute around half of overall smartphones sales there this year. So little to cheer Apple there, in terms of growth opportunity for premium priced devices, but potentially good news for alternative smartphone OS maker Jolla which last year inked a deal with Indian OEM Intex to get devices running its Sailfish platform into the market.

The first Sailfish device for India, the Intex Aqua Fish, is priced below $120 and due to arrive this year, although its launch has been delayed — and last month was being slated as arriving “in the coming months”.

Turning to China, the story last year was flat smartphone sales, and Gartner is expecting “little growth” in the region in the next five years — couching it as a “saturated yet highly competitive” market — and noting that sales of smartphones represented 95 per cent of total mobile phones sales last year. So bad news for ambitious homegrown player Xiaomi, which has been gunning for high growth just as the local market is saturating. Last month it signed a deal with Microsoft on patents — paving the way to hunt elusive smartphone growth overseas.

Gartner does say it sees opportunity for “non-traditional” vendors in China, projecting that by 2018 at least one such phone maker will be among the top five smartphone brands in the country. “Chinese internet companies are increasingly investing in mobile device hardware development, platforms and distribution as they aim to grow their user bases and increase user loyalty and engagement,” notes Gartner analyst Annette Zimmerman in a statement.

The Sub-Saharan African region is also couched as an attractive region for smartphone vendors, with smartphone sales only overtaking mobile phones sales there for the first time last year. Nokia brand licensee and newly formed smartphone OEM HMD will want to take note, given it has paid for the right to build featurephones (and smartphones) bearing the previously iconic Nokia brand name.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: SRPT +35.5%, WGBS +13.5%, CTIC +12.8%, GIGA +12.4%, UNFI +9.5%, Z +6.4%, DNAI +6.3%, ZG+4.3%, IBN +4%, RDS.A +3.7%, HDS +3.7%, SAN +2.6%, STM +2.5%, CHK +2.4%, DB +2.3%, TOT +2.3%, SNY +2%,SHPG +1.8%, ING +1.7%, WDC +1.6%, WLL +1.5%, BP +1.4%, BCS +1.3%, NVS +1.2%, BBVA +0.8%

Gapping down: DRYS -35.6%, MSTX -12.6%, MSTX -12.6%, COVS -11.6%, ALXN -11.5%, VRX -11.3%, ESI -9.5%, ENVA-9.4%, CTLT -7.3%, VBLT -3.9%, TLLP -3.7%, SIGM -3.2%, TRU -2.9%, CASY -2.6%, CLF -2%, ABX -1.2%, GDDY -1.1%,GDX -1%, FCX -0.9%, SLV -0.7%, NEM -0.7%, GOLD -0.6%, MIK -0.5%, VALE -0.5%

(BarCap) Vivendi Dwg to UnderWeight PT €16.50

* Vivendi expensive on an adjusted EV/EBITDA or free cash flow yield: Vivendi trades on 12-13x 2016E underlying EV/EBITDA a premium to the sector (adjusting for the various stakes). On a free cash flow yield, Vivendi trades on 3% over 2016E-18E while the sector is on 5% 2016E and 6% 2017E.
* Unlikely 15% rebound in subscribers needed to achieve Canal+ Group management target
* Sum of the parts : €16.50

>>> Apple - UBS Comment on Valuation - Analyst is +ve but don't find it bullish

Interesting comment on Apple as upside depends on "hardware hits"...and that won't happened...soon...so still -ve on Appl

Apple Inc. - DCF Scenario Analysis Suggests Limited Downside with Significant Upside
Requiring Hardware Hits

What is Apple worth?
Apple expert Horace Dediu recent told us, "As Apple is priced today, it’s assuming the ecosystem will
erode because we cannot justify the 800mn users paying $300 a year continuing in perpetuity. The
current price assumes either the $300 goes to $30 or the number of users goes from 800mn to 200mn
in a few years." To test this, we ran a DCF model on six Apple scenarios, from very bearish to quite
bullish. We found significant downside only in a BlackBerry situation in which iPhone units fall
precipitously. The stock appears about fairly valued on weak future iPhone sales. However, if new
products are 25-50% as successful as the iPhone, a high bar, we estimate there is upside to $130-160.
Limited downside barring an iPhone meltdown
Investors currently seem to be pricing in flat to down iPhone sales and moderate support from services
revenue, which appears reasonable over the near term. Our most bearish case is a Blackberry-like fall
from grace, putting the stock around $70. If iPhone goes the way of the PC at 5-10% annual declines,
the stock could be worth about today's price. Given the size of the iPhone and historical difficulty in
maintaining hardware margins, this is a reasonable possibility though probably too negative.
Upside potential mostly depends on substantial hardware hits
Significant upside requires either outstanding services growth, which we think ultimately depends on
hardware, or new product hits. Scenario 4 assumes new hardware product(s) with success equal to
about 25% of iPhone revenue, resulting in a stock price of $130-150. Scenario 5 assumes products
equal to 50% of iPhone revenue, likely reflecting a big win in virtual reality, which could take the stock
to $140-165. Scenario 6 is scenario 4 plus a successful Apple Car, which could support $170-195 per
share.
Valuation: Stock range bound near-term; keeping target of $115
The stock likely is range bound for now with low multiples acting as downside support and lack of
demand catalysts an upper ceiling. If estimates continue to decline, it will be hard for the stock to muster
more than a bounce for now. Increasingly F18 looks like the catalyst for more substantial appreciation.
Our target of $115 is 13x F17e EPS.

(UBS) FCA - FCA/PSA combination – the potential upside

FCA - FCA/PSA combination – the potential upside

Exploring scenarios for a combined entity
Fiat Chrysler Automobiles (FCA) is often the subject of M&A speculation – a perennial hot topic in the
auto sector. Although CEO Sergio Marchionne has publicly expressed his preference for other potential
combinations (CNBC interview, 30 March 2016), in this report we explore in detail what a merger with
PSA might look like. We think the companies complement each other well in terms of regional mix, and
at the same time see significant potential for synergies (large overlap in products and general R&D). A
merger would create a group of much greater scale (#5 car producer globally by market share, #2 in
Europe and #1 in Latam) and better regional diversification. We also look at an alliance, which offers
slightly less (but still significant) synergy potential.

€2.3-5.3bn synergies after full integration, c45-130% FCA share price upside
We estimate that a merger could yield annual synergies of €2.3-5.3bn (€1.9-4.1bn in an alliance),
equivalent to c25-60% of combined 2017E EBIT. These synergies derive from combining production
plants and model platforms, as well as from savings in general R&D, overhead and procurement costs.
Based on our NPV model, a merger could add €2.9-8.0/share in value for FCA shareholders, implying
c45-130% potential upside to the current share price, and based on a 50/50 share/cash acquisition of
PSA by FCA at a 20% premium to PSA's current market value. We've developed an interactive merger
model to enable investors to flex all the assumptions that went into our modelling.

Significant execution challenges
Our merger scenarios assume plant closures, platform consolidation, R&D rationalisation and overhead
optimisation, all of which may face political and regional challenges due to the re-allocation of resources
they would involve. Nevertheless, even in a conservative scenario and assuming no plant closures, an
FCA/PSA combination would still be value-accretive, which just serves to demonstrate how economies of
scale play out in the auto industry.

Valuation: Merger scenario not reflected in our price target; Neutral
As the likelihood and timing of any merger are unpredictable, we continue to value FCA on a standalone
basis. We maintain our Neutral rating and €7 SOTP-based price target. On a stand-alone basis, we
have a cautious longer-term stance on FCA due to its relatively weak balance sheet and strong earnings
exposure to the US trucks/SUV segment, which is at a cyclical high.

>>> Pre-Markets indications

ML
ROCKET - Hellofresh peer Blue Apron considering raising more money; bbg...+1%
TESCO/ MORRISON - BRC 3M Food LfL sees stepup to -0.3% from average -1.8%.+1%
BMPS - KKR, Blackstone & others targeted as potential buyers of NPLs......+1%
RDS - Positive. No divi cut, capex guidance implies $22-27bn p.a. Outflows+1%
AKER - On track with cost cut goal >30%, 3yr contract extension from Total+1%
ASTRAZENECA - Data for Acalabrutinib (BTK) in 1L CLL looked strong......+0.5%
MERCK - Data for PDL1 avelumab partner with PFE looks all encouraging...+0.5%
NH HOTELS - Spec Oceanwood to cease 4 seats from Chinese HNA on board...+0.5%
REPSOL - Agrees with Spanish unions on cutting 770 jobs; Economista.......u/c
ICAP - Tullett deal being referred for Phase 2 investigation. Minor issue.u/c
BANCO POP - Regulator asks for docs on rights issue post loans press spec.-1%
VIVENDI - To start video on demand service in Germany, d/g away from us...-1%
OUTOTEC - Medium term targets revised lower to 2-4% from 3-6% at CMD......-3%

CREDIT SUISSE
Adidas M/P German soccer jersey, made by Adidas, is a non-seller
Banca Gen M/P May total net inflows Eu433m (April Eu429m)
Burckhardt -3% FY15 results ~3% miss across the board
Daimler M/P Trucks CMD, expect to see more headlines throughout the day
Esure M/P Strategic review of Gocompare all inline
Fresenius M/P Smiths/Fres said to be final bidders for Pfizer's pump unit
Gamesa R Secured a new order from Elecnor
Meyer Burger +1% Awarded contract for over Chf10m
Miners -1% Copper -1%, Brent -0.20%, Iron Ore -0.80%, China +0.01%
Novartis M/P Says Tafinlar Combo Has Better Melanoma Survival Rate.
Royal Dutch -1-2% Investor day, asset sales as planned, Capex higher
Schindler M/P To Buy 25% in China’s Volkslift Elevator, Sets Up JV
Smiths group -1-2% Smiths/Fres said to be final bidders for Pfizer's pump unit

Investec
UK
* ESURE-Annouces Strategic review of Gocompare, incl pot. demerger..........+1%
* GOOCH&HOUSEGO-H1.#'s 3% ahead after strong Q2.No chg to FY fcast.........unch
* NETSCIENTIFIC-Further £500k investment in PDS Biotech....................unch
* RETAILERS-read to MKS,NXT,ABF from New Look 'UK Challenging' cmmnts.......-1%
* ROYAL DUTCH- +ive comments re:- synergies,cap ex ahead of todays CMD....+1/2%
* RWS-H1.Strong trading aided by favourable cncy movements................+3-4%
* TULLETT/ICAP deal faces in-depth CMA probe. Deal May Lessen Competition...-1%
Euro
* ACCOR-Hollande wants diversified s/holders (response to Jin Jiang stake)...-1%
* AKER SOLUTIONS-cost cuts on track,NOK400m contract,good visibility.........+1%
* DAIMLER-trucks unit to lay off 1200 workers in US..........................-1%
* DTEL-T-Mobile to give away free shares to customers, stock traded -1.3%....-1%
* FRESENIUS SE-said one of 2 final bidders for $1.5bn PFE pump unit(Rtrs)..+0.5%
* ROYAL DUTCH-Cap Mkt Day-raises BG deal synergies to $4.5bn from $3.5bn.....+1%
* SCHINDLER-buys 25% in Chinese jv partner,option over rest, no financials...U/C
* TELIA-sales of $1bn-valued Fintur unit slowed by worries over US fines.....-1%
Other news
* Investor/Capital Mkt Days: AKER SOLUTIONS, ROYAL DUTCH, HENKEL(day 2)
* US Co's reporting later: Navistar, Valeant

MainFirst
*L'OREAL-Signs accord with Global Bioenergies - Le Figaro.........U/C
*DAIMLER-Trucks to cut 1,240 jobs,WSJ talked about this 15/2.......+0.25%
*SCHINDLER-To buy 25% in Volkslift(China) & sets up JV.............+1%
*FRESENIUS-And Smiths final bidders for PFE Pump Unit,($1.5bln)....U/C
*GAMESA-To install 7 Wind Turbines for Elecnor in Jordan...........+0.5%
*TELIA-Fintur sale has slowed due 2 concerns over past dealings....-0.5%
*ORANGE-To compete with Western Union in Africa Transfers-Echos....+0.5%
*AIR FRANCE-Pilots Union to meet with management June 7th - APF....U/C
*SAP-Uunit pays $59m to settle lawsuit vs California controller....U/C
* BURCKHARDT-Orders 523.2m(516),Sales 487.2m(506),Ebit 73m(76)......-5%
*NOVARTIS-Tafinlar combo has better melanoma survival rate.........+0.25%
*ZODIAC-Utd Tech looking at acq's in interiors,structures(N/D).....+1%
*ACCOR-Hollande wants Accor holders to remain diversfied-AFP.......-1%