>>> Apple could look at Nokia's Chennai unit

Apple could look at Nokia's Chennai unit 

Apple, the Californian tech giant, could look at the Finnish Nokia’s Indian unit, according to Kauppalehti Online. In an unsourced analysis about Apple’s recent setback in India, which saw the company’s plans to sell old iPhones rejected, the piece suggested that Apple could start bring in phone components to India and then assemble the phones in India. For this purpose it could even look at the Finnish mobile network company Nokia’s Indian unit in Chennai, which is still for sale.

Kauppalehti Online

>>> What to look at today - 6th of May 2016

Dow+0.05% S&P-0.02% Nasdaq-0.18% Russell-0.47%
US Market closed near the flat line ahead of tomorrow April Employment Situation Report (consensus 207k). WTI crude traded as high as $45.98/bbl as investors weighed the impact of a wildfire in the Canadian oil sands town of Fort McMurray (17% of Canada output). consumer discretionary (-0.6%), telecom services (-0.6%), materials (-0.5%), and utilities (-0.4%), energy (+0.7%) and health care (+0.5%). Volume were above recent average with 949mil shares.
Best Perf : APA+8.06%, WMB+6.91%, WFM+5.96%, REGN+4.74% Worst Perf : MUR-7.77%, FCX-4.32%, CF-4.11%. USAfter Hours HLF+14%, RATE +14%, YELP +9%, ENDP -24%, SQ -13%, FEYE -9%, DATA -6%, GPRO -4% following earnings/guidance, CRME+31.7% on AGN Agreement, SPHS+22.6% on +ve Phase 3, KMPH-53.4% on DPA Decision. Asian equity markets remained under pressure as bearish momentum appears to have permeated investor sentiment going into the key data point of the week. A strong US non-farm payrolls on Friday could justify seemingly more hawkish rhetoric from Fed officials hinting that June FOMC Meeting remains live in spite of the fixed income market indications to the contrary. Alternatively, a soft report, as hinted by this week's 3-year low in ADP, could help reverse those expectations and weaken the dollar.China policymakers took more steps to address the growing debt bubble, as regulators had reportedly imposed tighter underwriting requirements for private company bonds. Effective later this year, brokers will require potential issuers to have credit rating higher than AA. Japan resumed its trade after a 3-day break with outsized declines in shares of Sharp after recent speculation of deep FY15/16 net loss. On the macro front, Japan LDP party VP raised the possibility of a delay to sales tax hike, echoing concern of his colleague Yamamoto.

Nikkei -0.50% Hang Seng -1.22% Shanghai -1.72%

Eur$1.1402 CNH 6.5182 CNY 6.5059 JPY 107.20 GBP 1.4475 CHF 0.9689 RUB$66.0717 WTI$43.88 (-0.99%)

S&P -0.07% EuroStoxx-0.10% Dax-0.13% SMI-0.27%

Macro :
- SpaceX Nails Droneship Landing, Returns Rocket’s First Stage
- The Book That Will Save Banking From Itself: Michael Lewis
- Gundlach: ECB, BOJ Will Go More Negative on Rates
- Uber’s China Rival Said Close to Raising $2b in New Funding
- Russia Seeks RU450b From State Companies for Budget: Vedomosti
- Nikkei Japan April Composite PMI 48.9 vs 49.9 in March
- SocGen Sees 32 Additions to MSCI DM, 15 to MSCI EM in May

Keep an eye on :
- ABG SM : Abengoa may have received offers some of its transmission lines - Exame
- ADS GY : NKE-1.92% pushed lower by the perf of retail sector
- AIR FP : Arianespace CEO Warns SpaceX May Lower Prices: Le Monde
- AIR FP : Boeing Reports 15 New 787 Orders, One 777 for FedEx
- AIR FP : Airbus CEO Enders Says 2H Will Be More Active Than 1H: Les Echos
- ALO FP : Dutch Railways Will Order 80 Alstom Trains, De Telegraaf Says
- MT NA : ArcelorMittal 1Q Sales Below, Ebitda Inline With Estimates
- ATVI US : Activision Boosts Yr Outlook as 1Q Adj. EPS, Rev. Top Ests.
- BHI US : GE or Carlyle Group could be interested by the company - http://bit.ly/24vaivH
- BMPS IM : Monte Paschi 1Q Profit Falls on Lower Lending, Trading Income
- BMPS IM : Monte Paschi 1Q Shows Positive Step on Asset Quality: Barclays
- CABK SM : CaixaBank Parent Co. to Transfer EU100m to La Caixa Foundation
- CFN PL : Cofina 1Q Ebitda EU2.9m vs EU3.1m Y/y
- CNA LN : Centrica Sells 350m Shares at 200 Pence/Share
- DWA US : Dreamworks 1Q EPS, Rev. Top Ests.
- ENEL IM : Enel close to making offer for fiber network firm Metroweb: sources http://reut.rs/1UCtnWH
- FAGR BB : Fagron Says Agreement Reached With Its Financiers, Investors
- SFER IM : Ferragamo Says in Talks With Eraldo Poletto for CEO Job
- GPRO US : GoPro 1Q Adj. Loss Wider Than Est., Rev. Beats, GoPro Reverses Post-Market Gains; Sees ‘Modest’ Q/q Growth in 2Q
- IAG LN : Reiterate Buy at CS with PT of 721p, 41% upside
- MDVN US : Medivation Says Big Shareholders Support Position on Sanofi Bid
- OHL SM : Saudi Arabia Stops Paying Mecca Train Construction: Expansion
- RLIA SM : accepatance period for Inversora Craso €0.80 take-over bid starts today and ends on May 19th. (El Economista)
- REC BB : Recticel Sees 2016 Combined Adj. Ebitda Up 10% With Higher Sales
- RNO FP : Renault to Invest EU600m in Production in Spain, Les Echos Says
- RHK GY : Rhoen-Klinikum 1Q Ebitda Slightly Beats; Confirms 2016 Guidance
- SAN FP : Medivation Reiterates Rejection of Sanofi’s Unsolicited Bid
- SAP GY : Apple and SAP to Develop iPhone, iPad Apps for Businesses
- SKG ID : Smurfit Kappa 1Q Revenue, Ebitda In Line With Estimates
- SONC PL : Sonae Capital 1Q Net Loss EU2.68m vs Loss EU3.88m Y/y
- TIT IM : *TELECOM ITALIA MAY WITHDRAW INWIT SALE, SOLE SAYS
- TEVA IT : Teva Said Finalizing Asset Sales to Clear Allergan Deal: Reuters

>>> EUrope : Brokers Upgrades & Downgrades - 6th of May 2016

>>> Up
*ADVANCE AUTO PARTS RAISED TO BUY VS NEUTRAL AT GOLDMAN
*AUTOGRILL RAISED TO NEUTRAL AT JPMORGAN
*SAIPEM RAISED TO NEUTRAL VS UNDERPERFORM AT MACQUARIE
*SCHIBSTED RAISED TO NEUTRAL VS SELL AT CITI
*TAV RAISED TO BUY AT BOFAML

>>> Down
*AZIMUT CUT TO NEUTRAL VS OUTPERFORM AT MEDIOBANCA
*CENTRICA CUT TO NEUTRAL VS BUY AT CITI
*CORENERGY INFRASTRUCTURE CUT TO SECTOR PERFORM AT RBC
*KUKA CUT TO REDUCE VS HOLD AT KEPLER CHEUVREUX
*MAN GROUP CUT TO SELL VS BUY AT CITI
*MICHAELS COS CUT TO NEUTRAL VS BUY AT GOLDMAN
*POEYRY CUT TO HOLD AT NORDEA
*SALVATORE FERRAGAMO CUT TO UNDERPERFORM AT RBC CAPITAL
*WEATHERFORD CUT TO MARKET PERFORM VS OUTPERFORM AT WELLS FARGO

>>> PT Change


>>> Initiation
*EURONEXT RATED NEW BUY AT CITI; PT EU44
*MEDICLINIC RATED NEW EQUALWEIGHT AT MORGAN STANLEY, PT 900P
*SHIRE RATED NEW BUY AT LIBERUM, PT 4,700P
*SPEEDY HIRE RATED NEW BUY AT LIBERUM, PT 49P
*STEINHOFF RATED NEW OUTPERFORM AT CREDIT SUISSE; PT EU6
*WORLDPAY GROUP PLC RATED NEW NEUTRAL AT JPMORGAN

>>> Call

>>> Asian Update

Asian Market Update: RBA cuts inflation outlook in quarterly update; Japan LDP continues to clamor for tax hike delay as Services PMI contracts

***Economic Data***
- (AU) AUSTRALIA APR AIG PERFORMANCE OF CONSTRUCTION INDEX: 50.8 V 45.2 PRIOR (1st expansion in 5 months)
- (JP) JAPAN APR SERVICES PMI: 49.3 (first contraction since Mar 2015) v 50.0 PRIOR; COMPOSITE PMI: 48.9 v 49.9 PRIOR
- (JP) JAPAN APR MONETARY BASE Y/Y: 26.8% v 28.5% PRIOR; MONETARY BASE END OF PERIOD: ¥386.2T V ¥375.7T PRIOR
- (CN) CHINA MAR LEADING INDEX: 99.1 V 99.0 PRIOR

***Index Snapshot (as of 04:00 GMT)***
- Nikkei225 -0.8%, S&P/ASX -0.5%, Kospi closed, Shanghai Composite -1.9%, Hang Seng -1.3%, Jun S&P500 -0.1% at 2,041

***Commodities/Fixed Income***
- June gold +0.7% at $1,280/oz, June crude oil -1.1% at $43.83/brl, Jul copper +0.3% at $2.15/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 3.9 tonnes to 829.4 tonnes; highest since Dec 2013 (update)
- SLV: iShares Silver Trust ETF daily holdings fall to 10,454 tonnes from 10,538 tonnes prior; first decline since Apr 17th
- USD/CNY: *(CN) PBOC SETS YUAN MID POINT AT 6.5202 V 6.5128 PRIOR (3rd consecutive weaker setting; weakest Yuan setting since Mar 28th)
- (CN) PBOC to inject CNY30B in 7-day reverse repos; Drains net CNY220B this week v drained CNY290B prior
- (AU) Australia MoF (AOFM) sells A$700M in 1.75% 2020 Bonds; avg yield: 1.7989%; bid-to-cover: 3.24x

***Market Focal Points/FX***
- Asian equity markets remained under pressure as bearish momentum appears to have permeated investor sentiment going into the key data point of the week. A strong US non-farm payrolls on Friday could justify seemingly more hawkish rhetoric from Fed officials hinting that June FOMC Meeting remains live in spite of the fixed income market indications to the contrary. Alternatively, a soft report, as hinted by this week's 3-year low in ADP, could help reverse those expectations and weaken the dollar. Among FX majors, USD/JPY is in a 40pip range above 107. AUD/USD lost about 100pips to a trade at a 2-month low below $0.74 after latest RBA projections, also weighing on NZD/USD which fell 40pips from the highs to 0.6850. PBoC's Yuan fix was weaker yet, with China FX reserves and trade figures on tap for this weekend.

- After a surprise rate cut by the RBA this week, today's quarterly policy statement expanded on the central bank's inflation worries. RBA cut its 2016-end CPI target to 1-2% from 2-3% and also cut its 2017-end target to 1.5-2.5%. 2018 H1 outlook was set at 1.5-2.5%, down from 2-3% prior and long-term target range, suggesting the central bank is leaving itself a window for more easing. RBA's statement said that much as well, while also pointing to uncertainty around economic outlook for China while also concluding that non-mining sector emergence remains subdued. Australia short-term rates fell on the announcement, tracking a large downsize move in AUD, with 3-year yield at a record low below 1.6%.

- China policymakers took more steps to address the growing debt bubble, as regulators had reportedly imposed tighter underwriting requirements for private company bonds. Effective later this year, brokers will require potential issuers to have credit rating higher than AA. Optimism over China property sector - a brighter area of the slowing economy recently - was also reined in. According to a CASS report, growth in prices in top tier cities is expected to slow, while prices in 3rd and 4th tier cities would continue to fall. Report suggested the govt may further reduce downpayment requirement in 3rd and 4th tier to 15% from 20%.

- Japan resumed its trade after a 3-day break with outsized declines in shares of Sharp after recent speculation of deep FY15/16 net loss. On the macro front, Japan LDP party VP raised the possibility of a delay to sales tax hike, echoing concern of his colleague Yamamoto. Japan Services PMIs would justify that type of caution as the index fell into contraction for the first time since last March. Forward looking backlog component saw sharp declines, while input prices increased at the weakest rate since February 2015, underscoring Japan's ongoing challenge with defeating deflation.

***Equities***
US equities / ADRs:
- HLF: Reports Q1 $1.12 (adj) v $1.07e, R$1.12B v $1.04Be (1 est); +13.2% afterhours
- YELP: Reports Q1 +$0.08 v -$0.15e, R$158.6M v $156Me; +9.0% afterhours
- ATVI: Reports Q1 $0.23 adj v $0.13e, R$908M v $818Me; +6.3% afterhours
- WYNN: Reports Q1 $1.07 v $0.83e, R$998M v $987Me; +2.0% afterhours
- MSI: Reports Q1 $0.52 v $0.41e, R$1.19B v $1.18Be; -0.2% afterhours
- CERN: Reports Q1 $0.53 v $0.53e, R$1.14B v $1.17Be; -4.1% afterhours
- GPRO: Reports Q1 -$0.63 v -$0.58e, R$184M v $171Me; Delays Karma drone rollout; -5.1% afterhours
- FEYE: Reports Q1 -$0.47 v -$0.50e, R$168M v $172Me; Announces several management changes; -9.3% afterhours
- SQ: Reports Q1 -$0.29 v -$0.13e, Total Rev $379M v $346Me; Raises FY16 guidance; lockup expires May 16; -12.1% afterhours

Notable movers by sector:
- Consumer discretionary: Wynn Macau 1128.HK -1.7% (Q1 result); Fairfax Media FXJ.AU -1.0% (guidance)
- Financials: Macquarie Group MQG.AU 0.6% (FY16 result)
- Industrials: Great Wall Motor 2333.HK -2.3% (Apr result); Nufarm NUF.AU +1.8% (reaffirms guidance); Geely Automobile Holdings 175.HK -1.3% (Apr result)
- Technology: FIH Mobile 2038.HK -21.0% (guidance); MYOB Group MYO.AU +1.2% (reaffirms guidance)

>>> US After Hours Summary: HLF +14%, RATE +14%, YELP +9%, ENDP -24%,


After Hours Summary: HLF +14%, RATE +14%, YELP +9%, ENDP -24%, SQ -13%, FEYE -9%, DATA -6%, GPRO -4% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: HLF +13.6%, RATE +13.6%, SPPI +13.3%, YELP +9%, MDR +9.1%, UBNT +8%, POST +7.5%, ACAD +6.5%, LPTH +6.9%, PTCT +6.8%, ATHX +10.4%, ATVI+6.4%, ANET +5.4%, ATW +5.3%, SYN +5.1%, INAP +5%, CLNE +4.4%, AL +3.8%, MELI +3.4%, WYNN +1.9%

Companies trading higher in after hours in reaction to news: CRME +31.7% (Cardiome Pharma & Allergan (AGN) sign exclusive license agreement), SPHS +22.6% (Sophiris Bio will present 'positive' data from its Phase 3 study of topsalysin as a treatment for the symptoms of benign prostatic hyperplasia at the American Urological Association Annual Meeting on May 7), RATE +13.6% (to acquire the business of NextAdvisor for ~$76.3 mln in cash and ~$3.00 mln in time-based vesting restricted stock units)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: GST -26.3%, ENDP -24.4%, IMPV -18.5%, BSQR -12.4%, SQ -12.6%, UNXL -11.2%, FEYE -8.5%, FLR -7.8%, DATA -5.8%, GPRO -4.4%, CERN -4.9%, CRC-4.8%, GEOS -4%, OLED -3.9%, TRUE -3.2%, DEPO -2.2%, CYBR -2.4%, PMT -2.3%, LOCO -3.3%, SPWR -2%

Companies trading lower in after hours in reaction to news: KMPH -53.4% (the Anesthetic and Analgesic Drug Products Advisory Committee determined by a vote of 16 to 4 in that Apadaz should be approved for its proposed indication and voted 18 to 2 against inclusion of abuse deterrent labeling for the product), ARP -11.7% (suspends common unit and Class C preferred distributions, due to continued lower commodity price environment), BANC -3.7% ( Banco Santander Mexico subsidiary, Banco Santander (Mexico), S.A. has been designated a level III domestic systemically important financial institution by The Mexican National Banking And Securities Commission), SO -3.4% (commences 18.3 mln common stock offering)

>>> Medivation misses by $0.12, misses on revs; guides FY16 EPS in-line (59.22

--> -0,80% in after hours

Medivation misses by $0.12, misses on revs; guides FY16 EPS in-line
* Reports Q1 (Mar) earnings of $0.11 per share, excluding non-recurring items, $0.12 worse than the Capital IQ Consensus of $0.23; revenues rose 41.3% year/year to $182.5 mln vs the $197.72 mln Capital IQ Consensus.
* Co reaffirms guidance for FY16, sees EPS of $1.30-1.40, excluding non-recurring items, vs. $1.34 Capital IQ Consensus Estimate; reaffirms FY16 revs of $900-970 mln, may not be comparable to $935.76 mln Capital IQ Consensus Estimate.
* U.S. net sales of XTANDI, as reported by Astellas, are reaffirms to be in a range between $1.425-1.525 billion in 2016. This represents Medivation's projection of U.S. net sales at the Astellas level

>>> US Close Dow+0.05% S&P-0.02% Nasdaq-0.18% Russell-0.47%

Closing Market Summary: Indices End Flat Ahead of Employment Report

The stock market ended the Thursday affair on a flat note as investors looked ahead to tomorrow's release of the April Employment Situation Report (consensus 207k). Other contributing factors for today's trade included an uptick in oil, a bid in the Treasury complex, a leg higher in the dollar, and the underperformance of the heavily-weighted consumer discretionary sector (-0.6%). The Nasdaq Composite (-0.2%) ended its day behind the S&P 500 (UNCH) and the Dow Jones Industrial Average (+0.1%).

Overnight, international bourses adopted a risk-off posture ahead of tomorrow's release of the Employment Situation Report for April. The consensus expects nonfarm payrolls to increase by 207,000 and the consensus expects hourly earnings to increase 0.3%. The influential jobs report follows yesterday's ADP Employment Change for April (156,000; consensus 196,000), which likely lowered expectations for the employment reading.

The U.S. market opened on a higher note as a rebound in crude helped increase risk appetite in the broader market. WTI crude traded as high as $45.98/bbl as investors weighed the impact of a wildfire in the Canadian oil sands town of Fort McMurray. The area produces approximately 17.0% of Canada's oil output and evacuation efforts impacted short-term production from the area. WTI crude ended its day off its high as an uptick in the U.S. Dollar Index (93.76, +0.58) acted as a headwind for the dollar-denominated commodity.

The major averages pared gains along with oil as risk appetite declined ahead of tomorrow's data. By the end of the day, six sectors ended beneath their flat lines as consumer discretionary (-0.6%), telecom services (-0.6%), materials (-0.5%), and utilities (-0.4%) rounded out the leaderboard. On the flipside, energy (+0.7%) and health care (+0.5%) finished with the largest gains.

In the consumer discretionary space (-0.6%), Amazon (AMZN 659.09, -11.81) lost 1.8%, trimming its post-earnings gain to 9.5%. Elsewhere, Dow component Nike (NKE 58.19, -0.92) slipped 1.6% as it traded lower in sympathy with retail names. The SPDR S&P Retail ETF (XRT 42.91, -0.90) fell 2.1% after April same store sales readings disappointed.

The Dow Jones Transportation Average (-1.1%) displayed relative weakness as FedEx (FDX 160.37, -4.88) trimmed its year-to-date gain to 7.6%. Matson (MATX 32.82, -4.71) plunged 12.6% and rounded out the index after missing earnings estimates for the first quarter. Elsewhere, airlines name continued their recent retreat as American Airlines (AAL 32.80, -0.40) extended its weekly loss to 5.5%. The Transportation Average has declined 2.6% so far this week.

Independent oil and gas companies outperformed in the commodity-sensitive energy space (+0.7%). Apache (APA 54.82, +4.09) gained 8.1% after beating bottom-line estimates for the quarter and raising its North American onshore production guidance. EOG Resources (EOG 81.26, +1.92) gained 2.4% ahead of this evening's earnings report. WTI crude ended its day higher by 1.3% at $44.34/bbl. The broader energy sector has declined 2.8% this week, compared to a loss of 3.5% in oil over that period.

The Treasury complex rallied as equities remained near their session lows. The yield on the 10-yr note sank from 1.80% (+3 bps) at the beginning of the session to 1.74% (-4 bps) by the close. The yield on the 10-yr note has fallen nine basis points since last Friday's settlement at 1.83%.

Today's volume was above the recent average as more than 949 million shares changed hands on the NYSE floor.

Today's economic data included April Challenger Job Cuts and weekly initial claims: 

  • The Challenger Job Cuts report revealed 250,061 job cut announcements from January to April, marking the highest total for that period since 2009.
  • Initial claims filings for the week ending April 30 were 274,000 (consensus 259,000), an increase of 17,000 from the prior week's unrevised level.
    • Notwithstanding the jump in initial claims, they remained below 300,000 for the 61st straight week, extending their best streak since 1973. The four-week moving average for initial claims bumped up 2,000 to 258,000.
  • Continuing claims for the week ending April 23 decreased by 8,000 to 2.121 million.
    • That is the lowest level since November 4, 2000, and the four-week moving average of 2.140 million is the lowest level since November 11, 2000.

Tomorrow's economic data will include the Employment Situation Report for April (consensus 207k) and Consumer Credit for March (consensus $18.0 billion), which will cross the wires at 8:30 ET and 15:00 ET, respectively. 

  • Nasdaq Composite -5.8% YTD
  • Russell 2000 -2.4% YTD
  • S&P 500 +0.3% YTD
  • Dow Jones +1.4% YTD