(Janus) Bill Gross Inv. Outlook : Culture Clash

* "I speak in this Outlook to information technology and the robotization of our future global economy. Virtually every industry in existence is likely to become less labor-intensive in future years as new technology is assimilated into existing business models."

* "And if so, as author Andy Stern writes in Raising the Floor, a policymaker – a future President or Prime Minister – must recognize that existing government policies have “built a whole social infrastructure based on the concept of a job, and that concept does not work anymore.” In other words, if income goes to technological robots whatever the form, instead of human beings, our culture will change and if so policies must adapt to those changes.

* "In broader terms, they are advocating fiscal stimulus but stimulus that isn’t paid for with private borrowing or taxes."

* "It’s a hard concept to understand and that’s why politicians never discuss it – nor do most central bankers, who
want to preserve the sanctity of their “balance sheets” and independence of their institutions. But the independence between central banks and government is rapidly eroding – a new culture is forming if only by necessity. Printing money via QE is in effect a comingling of monetary and fiscal policy, of central bank and treasury."

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: GKOS +25.8%, ETSY +17.7%, NTRI +16.1%, ZG +13.7%, RLOC +12.7%, QUOT +9.8%, PAYC +9.7%, LCI +7.8%,PLT +7.7%, BPI +7.7%, SHOP +7.4%, MTCH +7.3%, XCO +6.6%, FARO +5.7%, ABEV +5.5%, MEMP +5%, ENBL +4.5%, TSE +4.2%, RTRX +3.8%, HSC +3.8%,TGI +3.4%, SFS +3.2%, ICE +3.1%, ICE +3.1%, ZEN +2.8%, SCMP +2.7%, LYV +2.6%, CAR +2.6%, RPXC +2.4%, DVN +2.3%, CALX +2.2%, QUAD +2.2%, PGH+2%, TWX +1.8%, TWX +1.8%, ZTS +1.7%, ARCO +1.7%, CHUY +1.6%, ENR +1.6%, CBS +1.5%, BKH +1.2%, IAG +1.2%, KAR +1.1%, OKE +1.1%, PPP+1.1%, HMHC +1.1%

M&A news: "YCB +1% (Your Community Bankshares to merge with WesBanco (WSBC), Your Community shareholders to receive 0.964 of a share of WesBanco & $7.70/share for each share of Your Community stock, expects earnings accretion)

Other news: ABUS +4.5% ( announces a licensing and research collaboration agreement with the Saint Louis University Liver Center to develop Ribunuclease H (RNaseH) inhibitors), MTL +3.8% (still checking), INFN +2.7% (Infinera CEO and CFO purchase shares), P +2% (CFO Michael Herring purchases 50,000 shares at ~$9.2128/share), STX +1.5% (CEO Stephen Luczo purchases 200,000 shares at ~$20.0817/share), HZNP +1.4% (receives three additional Notice of Allowances from the USPTO that cover its PENNSAID 2% w/w)

Analyst comments: SCTY +1.5% (initiated with a Buy at Guggenheim), LUX +0.9% (upgraded to Outperform from Mkt Perform at Raymond James

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: CRAY -21.2%, GLUU -15.7%, CALD -13.4%, BGFV -9.9%, OMF -9.7%, KFRC -8.8%, SYRG -7.8%, (Synergy Resources confirms acquisition of certain assets from Noble Energy (NBL) for $505 mln in cash, and announces two separate divestitures in Adams County for ~$27 mln in cash; announces 45 mln share underwritten public offering ), MYGN -7.4%, CHEF -6.8%, RUBI -6.8%, RUBI -6.8%, CLH -5.9%, TXMD-5.1%, ILMN -5%, WD -4.8%, ENPH -4.5%, CERS -4.2%, SERV -4.1%, MDCA -4%, ATRO -3.8%, HCI -3.2%, PZZA -2.9%, VRSK -2.8%, BUD -2.4%, KATE-2.3%, RDS.B -2.2%, SHLX -2.1%, MB -2%, HUM -2%, GMED -1.9%, AMED -1.8%, SUM -1.6%, USNA -1.3%, NYMT -1.2%, VOYA -1.2%, SE -1.2%

Select EU Pharma names showing weakness: SHPG -2.6%, GSK -2.3%, AZN -2.1%, NVS -1.1%, NVO -0.6%

Select metals/mining stocks trading lower: BBL -5.7%, AU -2.1%, RIO -1.4%, CLF -1.1%, X -1.1%, MT -1.1%, PAAS -1.1%, ABX -1%, GDX -0.9%, NEM -0.8%

Other news: SYRG -10% (Noble Energy sells certain oil and natural gas properties, including the ~33,100 primarily undeveloped net acres within the DJ Basin, in the Greeley Crescent area for $505 mln to Synergy Resources), RLYP -9.6% (secures $150 mln in aggregate principal amount of senior secured term loans April 2022), BHP -5.5% (The Federal Public Prosecution Service has announced that it has commenced proceedings against Samarco Mineração, Vale (VALE) and BHP Billiton Brasil LTDA (BHP) for BRL 155 bln), UA -3.9% (Under Armour announces retirement of Chief Merchandising Officer Henry Stafford, effective July 2016), ACAD -3.2% ( details post-marketing studies following NUPLAZID FDA approval), STKL -3% (SunOpta voluntarily recalls a limited number of sunflower kernel products that have the potential to be contaminated with Listeria Monocytogenes), VALE -2.3% (The Federal Public Prosecution Service has announced that it has commenced proceedings against Samarco Mineração, Vale (VALE) and BHP Billiton Brasil LTDA (BHP) for BRL 155 bln), CTRP -2.3% (in smypathy with PCLN (reported earnings)), EXPE -2.1% (in smypathy with PCLN (reported earnings)),STRL -1.9% (prices 4,500,000 shares of its common stock at $4.00 per share)

Analyst comments: RAIL -2.2% (downgraded to Neutral from Buy at Longbow), MOH -1.7% (downgraded to Sell from Neutral at Goldman), BZH -1.4% (downgraded to Neutral from Buy at UBS), KBH -1.4% (downgraded to Sell from Neutral at UBS), UBS -0.8% (downgraded to Equal Weight from Overweight at Morgan Stanley)

>>> US Early premarket gappers

Early premarket gappers
Gapping up: GKOS +25.8%, NTRI +16.4%, ETSY +12.9%, ZG +12.8%, RLOC +12.7%, LCI +7.8%, PLT +7.7%, BPI +7.7%, MTCH +7.3%, XCO +6.6%, FARO+5.7%, PAYC +5.7%, ABEV +5.5%, DYN +5.4%, MEMP +5%, ABUS +4.5%, TSE +4.2%, MDVN +3.9%, MTL +3.8%, RTRX +3.8%, INFN +3.7%, ENBL +3.6%, TGI+3.4%, SFS +3.2%, CHUY +2.9%, ZEN +2.8%, SCMP +2.7%, LYV +2.6%, CAR +2.6%, RPXC +2.4%, DVN +2.3%, SDRL +2.2%, CALX +2.2%, CBS +2.2%, QUAD+2.2%, PGH +2%, CSIQ +1.9%, CHK +1.6%, ENR +1.6%, P +1.5%, TWX +1.5%, TWX +1.5%, BKH +1.2%, STX +1.1%, KORS +1.1%, KAR +1.1%, OKE +1.1%,PPP +1.1%, HMHC +1.1%, YCB +0.9%, HYH +0.9%

Gapping down: CRAY -21%, GLUU -17.6%, CALD -13.4%, BGFV -9.9%, RLYP -9.6%, KFRC -8.8%, SYRG -7.8%, SYRG -7.8%, MYGN -7.4%, BBL -7.1%, BHP-6.9%, CHEF -6.8%, STKL -6.2%, RUBI -6%, RUBI -6%, VALE -5.6%, TXMD -5.1%, WD -4.8%, ENPH -4.5%, MDCA -4%, ILMN -3.9%, ILMN -3.9%, CERS-3.4%, ACAD -3.3%, AU -3.2%, BCS -3.2%, HCI -3.2%, PZZA -2.9%, UA -2.8%, EXPE -2.8%, SHPG -2.7%, ABX -2.4%, GDX -2.4%, HSBC -2.4%, GSK -2.4%,GSK -2.4%, RDS.B -2.4%, AZN -2.3%, RIO -2.3%, NEM -2.2%, SHLX -2.1%, MT -2%, MB -2%, GMED -1.9%, X -1.8%, AMED -1.8%, QUOT -1.7%, SUM -1.6%,TREE -1.4%, FCX -1.3%, USNA -1.3%, VOYA -1.2%

FT : Calls for Reckitt Benckiser boycott in South Korea

Calls for Reckitt Benckiser boycott in South Korea

South Korean supermarket chain Lotte Mart has stopped stocking Reckitt Benckiser products amid a growing public backlash against the British consumer goods maker blamed for selling fatal disinfectants that caused nearly 100 deaths five years ago.
The move comes as South Korean prosecutors investigate Reckitt Benckiser and three other domestic makers of humidifier sterilisers linked to the illness or deaths of more than 500 people who inhaled allegedly poisonous chemicals.

Reckitt Benckiser withdrew the disinfectant made by its Korean Oxy unit in 2011 after a government probe suggested a link between lung damage and humidifier disinfectants. The environment ministry said none of the tainted products were sold outside South Korea.
Prosecutors last month summoned the former head of Reckitt Benckiser’s Korean unit and two other senior executives to find out whether they approved the sale of the disinfectants, knowing their harmful effects.
On Wednesday, Lotte cleared most of Reckitt Benckiser’s products from its store shelves. “Not many consumers are buying the company’s products these days and we have to respond to their calls,” the company said.
Reckitt Benckiser sells more than 120 household items and five medical products in South Korea.
Atar Safdar, the head of its Korean unit, apologised on Monday in a televised news conference and offered a multimillion-dollar compensation plan for victims.
But the company has come under fire for its initial denials of any responsibility. The victims’ families rejected Mr Safdar’s apology as too late and consumer groups have called for a boycott of Reckitt Benckiser products.
Civic groups representing the victims have filed a complaint with prosecutors against the UK company’s eight board members including Rakesh Kapoor, the British company’s chief executive, for failing to conduct proper safety tests before launching the product in 2001.
Lotte Mart itself apologised last month to affected users of its own brand Wiselect, which it sold November 2006 and September 2011, and offered compensation for victims.
The health risks from the disinfectants came to light after four pregnant women died of lung problems for unknown reasons in 2011. South Korean authorities later that year blamed the chemicals PHMG and PGH used in humidifier disinfectants and suspended sales of the products. Most victims were children and pregnant women.
According to government data, 530 affected people applied for compensation as of April 2015. The government said it would compensate 221 confirmed victims, including the families of 95 people who died, and denied compensation for 309 people.
The government said it had paid Won3.75bn ($3.2m) to the victims and their families as of April this year and plans to get refunds from the disinfectant makers through an ongoing lawsuit.
Reckitt Benckiser was fined $1.3m by an Australian court last month for misleading consumers about the effectiveness of its popular painkiller Nurofen. The court ruled that products marketed as targeting specific ailments such as migraines and back pain were actually identical.