>>> Thermo Fisher beats by $0.01, beats on revs

Thermo Fisher beats by $0.01, beats on revs
  • Reports Q4 (Dec) earnings of $2.12 per share, $0.01 better than the Capital IQ Consensus of $2.11; revenues rose 3.6% year/year to $4.65 bln vs the $4.55 bln Capital IQ Consensus.
  • The company will provide 2016 financial guidance on its earnings conference call this morning at 8:30 a.m. EST.

>>> Time Warner Cable beats by $0.02, reports revs in-line

Time Warner Cable beats by $0.02, reports revs in-line
  • Reports Q4 (Dec) adj. earnings of $1.80 per share, $0.02 better than the Capital IQ Consensus of $1.78; revenues rose 4.9% year/year to $6.07 bln vs the $6.05 bln Capital IQ Consensus. The highest fourth-quarter and full-year organic revenue growth in the last five years -- driven by accelerated growth in Residential Services (mostly high speed data) and strong growth in Business Services.
  • Adjusted OIBDA excluding pension expense was up slightly for the fourth quarter and full year.
  • Operating Income declined to $1.1 billion and $4.2 billion for the fourth quarter and full year, respectively, due to higher depreciation expense from "TWC Maxx" and other capital investments.
  • Strong fourth-quarter residential subscriber performance capped the best full-year residential subscriber performance ever
    • Customer relationship net additions of 200,000 for the fourth quarter and 618,000 for the full year
    • Video net additions of 54,000 for the fourth quarter and 32,000 for the full year
    • High-speed data net additions of 281,000 for the fourth quarter and 1,000,000 for the full year
    • Voice net additions of 227,000 for the fourth quarter and 1,036,000 for the full year

>>> China Injects Another $50 Billion Liquidity As Mysterious Panic Buyer Reappe

China Injects Another $50 Billion Liquidity As Mysterious Panic Buyer Reappears In Offshore Yuan

The PBOC FX intervention team continue to be busy in offshore Yuan this week as for the 4th time in 3 days, a mysterious panic-buyer lifted CNH between 5 and 10 handles higher for no good reason other than to show George Soros (and Bill Ackman) who is boss (i.e. drive away the shorts). In keeping with the recent "stability" the Yuan fix was flat but another 340bn Yuan was injected - except China CDS pushes to Aug 2015 wides indicating severe stress and suggesting devaluation looms.

Offshore Yuan in all its manipulated glory...It would appear 6.61 is the number to bet against!!
Mystery solved - USD/CNH sold near 6.6160 by large-sized Chinese banks, according to North Asia-based FX traders.
PBOC to the rescue.
Stability... or is it artificial (as CDS signals anything but)
But more liquidity...
  • *PBOC TO INJECT 340B YUAN WITH REVERSE REPOS: TRADERS
  • *PBOC TO INJECT 260B YUAN WITH 28-DAY REVERSE REPOS: TRADER
  • *PBOC TO INJECT 80B YUAN WITH 7-DAY REVERSE REPOS: TRADER
This week’s two auction windows were used to add a net 590 billion yuan, the most since February 2013, data compiled by Bloomberg show.
We look forward to the post China New Year unwind of all that liquidity.
You can only hold the big balloon under water for so long...

Stocks are not loving the FX intervention. It appears that the PBOC cannot figure out to manipulate both at the same time...
  • *SHANGHAI COMPOSITE INDEX DECLINES 1.3% AT OPEN
  • *CHINA'S CSI 300 INDEX SET TO OPEN DOWN 0.7% TO 2,909.33

>>> Autoneum could acquire in China

Autoneum could acquire in China 

Autoneum, the listed Swiss automotive parts company, could make acquisitions in China, Handelszeitung reported. Autoneum Chief Martin Hirzel told the Swiss weekly in a wide ranging interview that he is keen to acquire in China if he can find a parts company which would enable contacts with a Chinese auto-maker. Talks are underway, Hirzel stated.

Hirzel also confirmed he is interested in entering the Iranian market and is in talks with French auto-manufacturers Renault and PSA Peugeot Citroen regarding re-entering this market.

Autoneum is targeting revenues of CHF 2.6bn by 2020, the report noted.

Handelszeitung

>>> J Sainsbury says QIA yet to take final position on proposed offer for Home R

J Sainsbury says QIA yet to take final position on proposed offer for Home Retail Group

Sainsbury's notes the articles recently published in the Times and the Guardian.

We understand that the QIA is not the source of these articles and has not yet taken a final position on the proposed Home Retail Group transaction. Like any other shareholder the QIA would consider any such proposal in detail before making a final decision on its position.

This statement is made in accordance with the Note on Rule 19.3 of the Takeover Code.

>>> Facebook beats by $0.11, beats on revs

Facebook beats by $0.11, beats on revs
    • Daily active users (DAUs)- DAUs were 1.04 billion on average for December 2015, an increase of 17% year-over-year.
    • Mobile DAUs- Mobile DAUs were 934 million on average for December 2015, an increase of 25% year-over-year.
    • Monthly active users (MAUs)- MAUs were 1.59 billion as of December 31, 2015, an increase of 14% year-over-year.
    • Mobile MAUs- Mobile MAUs were 1.44 billion as of December 31, 2015, an increase of 21% year-over-year.
  • Mobile advertising revenue- Mobile advertising revenue represented approximately 80% of advertising revenue for the fourth quarter of 2015, up from 69% of advertising revenue in the fourth quarter of 2014.
  • Capital expenditures- Capital expenditures for the fourth quarter of 2015 were $692 million.


Facebook on Conference Call


    • Will be shipping Oculus controllers later this year; says this will be big moment for gaming community;
    • Shipping the Oculus headsets at end of March after opening up pre-orders this month.
    • Q4 ad revenue grew 57%; mobile ad revenue grew 81%.
    • FB and Instagram drove growth.
    • Saw strong growth across all verticals; seeing growth in International markets.
    Top 100 advertisers who advertised on Facebook also advertised on Instagram.
  • In Q4, the average price per ad increased 21% while total ad impressions increased 29% y/y; first quarter since Q3 2013 that total ad impressions increased on a y/y basis; driven by an increase in mobile ad impressions and was partially offset by decline in ad impressions delivered on personal computers consistent with the ongoing declines in PC usage.
  • In Q4 we also benefited to a lesser extent from increases in ad inventory from Instagram and the Audience Network.
  • Expect to continue to see FX headwinds, especially in 1H due to tougher comps.
  • Faces tougher comps given strong 2015 performance.
  • 2016 is another significant investment year for FB
    • Expect y/y expense growth rate to be GAAP 30-40%; Non-GAAP 45-55% y/y
    • CapEx to be in the range of $4.0-4.5 bln;
    • Building a new data center in Ireland

>>> What to look at today - 28th of January 2016

Dow-1.38% S&P-1.09% Nasdaq-2.18% Russell-1.50%
US Market closed lower after heavy selling in response to the Federal Open Market Committee's policy statement for January. Oil rebound was not enough to push market higher, it just helped on the first few hours but FED was stronger today. WTI crude managed to attract buyers despite the commodity showing larger than expected builds in both the EIA and API weekly inventories. This bullish activity in the face of poor data and increasing chatter regarding production cut agreements between OPEC and non-OPEC states may have been enough to signal a bottom to some investors, or at the very least a spot to cover short positions. WTI crude ended its pit session higher by 2.5% at $32.22/bbl. the Federal Open Market Committee demonstrated less dovish undertones than market participants may have been expecting. The statement partly acknowledged that growth had slowed and that inflation is expected to remain low in the near-term. However, the Fed's belief that inflation is expected to rise to 2.0% over the medium term in the face of declines in energy and import prices creates doubt as to whether the central bank will revise its glide path. Stocks ticked up immediately after the release, but followed that move with a slide to new lows. AAPL-6.57% GOOGL -2.21% FB-3%. IBB -3.2%. Volume were above 1bil shares. US After Hours After Hours Summary: FB -12.2%, CAVM +10.8%, TER +10.3%, MSTR +6.8%, MLNX +6.6%, PYPL +5.0%, NOW -15.2%, EBAY -12.2%, JNPR -7.4%. Asian indices are mixed as investors digest policy statement tweaks by the FOMC and prepare for tomorrow's Bank of Japan announcement.In Asian session, USD/JPY was rangebound in 50pip band below 119, EUR/USD traded in a 25pip range above 1.0880, and AUD/USD was supported above the 0.70 level. PM Abe's advisor Honda said he would conduct further monetary easing and also postpone sales tax hike in 2017 amid slowdown in global economy. PM Abe also remarked that the govt is working with the BOJ to end deflation. In China, state press People's Daily reiterated the economy will not experience a hard landing in spite of recent comments to the contrary from famed investor George Soros. Samsung Electronics traded down nearly 3% as Net profits in Q4 were well below expectations.

Nikkei -0.71% Hnag Seng -0.20% Shanghai -2.09%

Eur 1.0879 CNH 6.6128 CNY 6.5781 JPY 118.62 GBP 1.4289 RUB 78.0590 WTI 31.76 -1.64%

SP+0.16% EuroStoxx-0.82% Dax+0.54% SMI-0.52%

Macro :
- Jana Is Short Royal Mail, Dixons Carphone, InterContinental
- Germany Targets 129 Banks Over Dividend Stripping: Handelsblatt
- $1 Trillion China Money Exodus Isn’t About Capital Controls

Keep an eye on :
- AAL LN : Anglo American Mulls Sale of Brazil Nickel Assets: Globe & Mail
- AC FP : AccorHotels in Talks to Sell ~EU504m Portfolio to New Franchisee
- AIR FP : Iran Could Order 127 Airbus Planes: Liberation
- ALT FP : Altran Group 4Q Sales Rise 10%
- AUTN SW : Autoneum in Talks With Peugeot, Renault on Iran: Handelszeitung
- BMPS IM : Italy explores three-way deal for Monte dei Paschi http://reut.rs/1nojdv5
- BMPS IM : UBI Banca CEO asks for guarantees from Italian government in exchange for merger with BMPS
- BPI PL : BPI CEO Ulrich Says Unitel’s Offer Wasn’t Good Solution for BPI
- DBK GY : Deutsche Bank 4Q Net Loss EU2.1b; Revenue EU6.64b, 4Q CBS Origination Revenue Down 45% y/y
- G IM : Generali CEO Says Decision Unrelated to Investor Conflict
- HOME LN : Sainsbury: QIA Hasn’t Reached Opinion on Home Retail
- ILD FP : TalkTalk might have attracted interest from Iliad 
- LONN VX : Lonza could acquire in existing sectors Aargauer Zeitung
- MC FP : Chanel CEO Chiquet to Leave Over Strategic Differences: Echos
- MBTN SW : Meyer Burger 2015 Net Sales, New Orders Rise
- ORA FP : Orange Says No Plans to Pitch Bouygues Deal to Gov’t This Week
- UG FP : Peugeot, Iran Khodro to Set Up Joint Company: Figaro
- REP SM : Repsol to Book Impairment of About EU2.9b in 2015
- ROG VX : Roche 2015 Sales In Line With Ests.; Sees Rev., Core EPS Growth , 4Q Sales CHF12.6b, Estimate CHF12.2b
- RWE GY : RWE German Head Arndt Neuhaus to Leave: Handelsblatt
- SBRY LN : Sainsbury: QIA Hasn’t Reached Opinion on Home Retail (Earlier)
- SPOTIFY IPO : Spotify Said Seeking More Than $500 Million in Convertible Debt
- SZG GY : Salzgitter Pretax Profit Result Misses Analyst Estimates
- TALK LN : TalkTalk might have attracted interest from Iliad 
- TEL2 SS: Tele2 4Q Ebitda Beats Estimates; Dividend Raised 10%
- FR FP : Valeo CEO: China Market Met Growth Forecast in 2015: L’Opinion
- VIV FP : Want to rebuz Bein to save Canal plus - Liberation http://bit.ly/1WOZGjN
- VOLVB SS : Volvo CEO Says No Reason to Speculate on Division Sale: SVD