>>> What to look at today - 3rd April 2016

Dow+0.66% S&P+0.78% Nasdaq+0.88% Russell+0.89% VIX 14.68
US Market closed on a higher note after a weak previous week despite below-consensus economic data out of China and the U.S. Over the weekend, China released April PMI data that missed expectations (50.1; estimate: 50.3), but continued to show expansion. Reaction from China was muted as both the Shanghai Composite and the Hang Seng were closed for public holidays. consumer discretionary (+1.4%) and financial (+1.1%) sectors outweighed weakness from the oil pit. All ten sectors ended in positive territory with countercyclical consumer staples (+1.0%) and utilities (+0.8%) following the pair on the leaderboard. WTI crude ended its day lower by 2.6% at $44.75/bbl while natural gas finished down 6.4% to $2.04/MMbtu. Volume were in line with average at 960mil shares. US After Hours FN +12%, THC +7%, ONDK -24%, AIG -3% following earnings, CORI +25.7% on +ve FDA data, YELP+4.5% on Einhorn Stake. Asian equity markets are generally higher, tracking gains on Wall St that were largely attributed to the softening of the greenback. Despite the start of the 3-day break in Tokyo, trading in USD/JPY remained volatile as the pair hit fresh 18-month lows on the cusp of ¥106. China Caixin manufacturing PMI remained in contraction for the 14th straight month, missing expectations. RBA Cut rates to 1.75%. China April Caixin deteriorated, matching a slight retreat in the official figures released over the weekend. Markit noted that new orders stagnated and export work was down for 5th straight month, as inventories remained slim.

Nikkei Closed Hang Seng -1.04% Shanghai +1.60%

Eur$ 1.1545 CNH 6.4829 CNY 6.4742 JPY 105.88 GBP 1.4682 CHF 0.9539 RUB$ 64.9325 WTI$ 44.97 (+0.45%)

S&P-0.05% EuroStoxx +0.10% Dax +0.01% SMI -0.01%

Macro :
- El-Erian Says Global Growth Will Become Uneven and Unstable
- Merkel Says Public Funding Not Enough to Fight Climate Change
- Einhorn’s Greenlight Reports New Stake in Yelp, PVH: 1Q Letter
- EU to Give Spain Extra Year to Meet Deficit Goal: El Pais

Keep an eye on :
- ABG SM : State Grid may reach agreement on acquiring Abengoa assets in Brazil in short term - http://bit.ly/26M9Urq
- ALV GY : Germany Seeks to Lower Life-Insurance Interest: Finance Ministry
- AMAG AV : AMAG 1Q Net Drops 39% to EU7.7m; Sees FY16 Ebitda Up to EU125m
- AREVA FP : Areva: Reactor Test Proves Coolant Pump Shutdown Seal Reliable
- BAYN GY : Bayer Patents on Erectile-Dysfunction Drug Upheld by Judge
- BCP PL : BCP to Request Repayment of About EU250m of Cocos
- BMW GY : BMW 1Q Profit Misses Estimate; FY Forecast Confirmed
- BMSA GY : Braas Monier 1Q Ebit, Net Loss Widens; Confirms 2016 Outlook
- BNP FP : BNP 1Q Net Rises on Lower Loan-Loss Provisions, Beats Estimate
- BOL SS : Boliden 1Q Operating Profit Beats Ests., Sales Miss
- BPOST BB : Bpost 1Q Adj. Ebitda Beats Est. on Cost Reduction; Affirms Views
- BP/ LN : BP Doesn’t See ‘Mega-Scale’ M&A as Part of Its Future
- CBK GY : Commerzbank 1Q Net Income Beats, CET1 Ratio Unchanged vs 4Q
- CGG FP : CGG 1Q Net Loss $130m; Est. Loss $111.5m
- DL NA : Delta Lloyd retiterates intention to sell 30% Van Lanschot stake
- DUFN VX : Dufry 1Q Ebitda Beats Ests., Sees Organic Growth Positive for Yr
- ENGI FP : French regulator orders Engie to raise gas prices for companies - FT - http://on.ft.com/1W4iheT
- RACE IM : Ferrari in MOU to sell majority stake in financial services unit to FCA Bank
- FCA IM : Fiat Chrysler Reached Self-Driving Cars Deal With Google: Sole
- FRE GY : Fresenius SE 1Q Net Ex-Items Beats; Confirms 2016 Outlook
- GNC US : Vitamin Shoppe/GNC Possible Deal Not Very Likely, BofAML Says
- HSBA LN : HSBC’s 1Q Beat Due to Better GB&M, Costs, Bernstein Says
- BOSS GY : Hugo Boss 1Q Adj. Ebitda Misses Ests., Confirms 2016 Forecast
- IFX GY : Infineon 2Q Rev. Matches Ests.; Sees 3Q Rev. Growing
- KVAER NO : Kvaerner 1Q Net Beats Ests.; Maintains 2016 Revenue Guidance
- KHC US : Kraft Heinz Up After Berkshire Mtg, Two Days Ahead of Earnings
- KUD SW : Kudelski Group Acquires Milestone Systems
- LANS NA : Delta Lloyd retiterates intention to sell 30% Van Lanschot stake
- LHA GY : Lufthansa 1Q Loss EU53m, Confirms Full-Year Forecast
- MOR GY : MorphoSys 1Q Revenue Drops; Confirms 2016 Guidance
- NEX FP : Nexans Says 1Q Organic Growth In Line With Company Expectations
- ORK NO : Orkla 1Q Revenue Slightly Beats Ests.; Keeps Growth Targets
- PFV GY : Pfeiffer Vacuum 1Q Sales Rise 2.5%, Net Down 22%
- PGS NO : PGS 1Q Ebitda In Line With Ests.; Sees 2016 Capex About $225m
- PHIA NA : Philips to List Lighting Division After Finding No Buyer
- PSM GY : ProSiebenSat.1 1Q Beats on Digital Growth; Confirms 2016 Outlook
- REC NO : REC Silicon 1Q Revenue Slightly Above Estimates
- ROG VX : Roche Presents 19 Drugs at ASCO Meeting
- SAA1V FH : Sanoma 1Q Sales Beat Estimates; Operational Ebit Rises Y/y
- SAZ GY : Activist investor (5% holder) reportedly to push management to explore potential sale of company
- SEN GY : Renewable Energy Equipment - Initiate today at Major Banks - IPO on 23/03 @ €15.75 - trading €15.20 - end of Lock cup on 24/09/2016
- SCMN VX : Swisscom 1Q Rev. In Line With Ests.; Keeps Outlook Unchanged
- SOLB BB : Solvay 1Q Adj. Ebitda Tops Ests. on Lower Polyamide Costs
- SOP FP : Sopra Steria 1Q Organic Growth Up 3.3%; Raises Rev. Outlook
- STMN SW : Straumann 1Q Rev. Beats Estimate; Raises FY16 Organic Outlook
- TGYM IM : Technogym Institutional Demand at Offer Price 4x Oversubscribed
- TEF SM : Telefonica Brasil to Block Whatsapp for 72Hrs Starting 2pm Local
- UBSG VX : UBS’s Ermotti Says Environment Remains ‘Very Challenging’ in 2Q

>>> Europe : Brokers Upgrades & Downgrades - 3rd of May 2016

>>> Up
*DIRECT LINE RAISED TO NEUTRAL VS UNDERPERFORM AT MACQUARIE
*K+S RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*KUKA RAISED TO OUTPERFORM VS NEUTRAL AT MACQUARIE
*LUNDIN PETROLEUM RAISED TO BUY VS NEUTRAL AT GOLDMAN
*RSA INSURANCE RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*SWISS RE RAISED TO OVERWEIGHT AT JPMORGAN

>>> Down
*AIR FRANCE-KLM CUT TO HOLD FROM BUY AT GOODBODY; PT EU7.90
*DET NORSKE CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*DUERR CUT TO NEUTRAL VS OUTPERFORM AT MACQUARIE
*GENEL ENERGY CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*HANNOVER RUECK SE CUT TO NEUTRAL AT JPMORGAN
*LUNDIN PETROLEUM CUT TO UNDERPERFORM AT CREDIT SUISSE
*RELX CUT TO NEUTRAL VS BUY AT GOLDMAN
*REXEL CUT TO HOLD VS BUY AT KEPLER CHEUVREUX
*RBS CUT TO NEUTRAL VS BUY AT UBS
*SANOFI CUT TO HOLD VS BUY AT HSBC
*TENARIS CUT TO REDUCE VS HOLD AT KEPLER CHEUVREUX
*TULLOW OIL CUT TO NEUTRAL VS OUTPERFORM AT MACQUARIE
*UNITED TECHNOLOGIES CUT TO SECTOR PERFORM AT RBC CAPITAL

>>> PT Change


>>> Initiation
*AURUBIS RATED NEW OUTPERFORM AT CREDIT SUISSE; PT EU60
*BRENNTAG REINSTATED AT BUY AT BOFAML; PT EU63
*CAIRN ENERGY RATED NEW NEUTRAL AT GOLDMAN
*DNO ASA RATED NEW SELL AT GOLDMAN
*SENVION RATED NEW BUY AT BERENBERG; PT EU20
*SENVION RATED NEW BUY AT BOFAML; PT EU22
*SENVION RATED NEW OVERWEIGHT AT BARCLAYS, PT EU25
*SENVION RATED NEW EQUAL WEIGHT AT MORGAN STANLEY, PT EU17.30

>>> Call

>>> Asian Update

Asian Market Update: China Caixin manufacturing PMI remains in contraction; RBA cuts rates in response to low inflation


***Economic Data***
- (CN) CHINA APR CAIXIN PMI MANUFACTURING: 49.4 V 49.8E; 14th month of contraction
- (AU) RESERVE BANK OF AUSTRALIA (RBA) CUTS CASH RATE TARGET BY 25BPS TO 1.75% (RECORD LOW), NOT EXPECTED
- (AU) AUSTRALIA MAR BUILDING APPROVALS M/M: +3.7% (3-month high; 2nd straight increase) V -2.0%E; Y/Y: -6.5% V -14.0%E
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 113.9 v 111.7 prior
- (KR) SOUTH KOREA APR CPI M/M: 0.1% V 0.1%E; Y/Y: 1.0% V 1.0%E; CPI CORE Y/Y: 1.8% V 1.6%E

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 closed, S&P/ASX 200 +0.7%, Kospi +0.4%, Shanghai Composite +1.5%, Hang Seng -1.2%, Jun S&P500 flat at 2,074

***Commodities/Fixed Income***
- June gold flat at $1,295/oz, June crude oil +0.7% at $45.09/brl, Jul copper -1.0% at $2.25/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 20.8 tonnes to 824.9 tonnes; highest since Dec 2013
- SLV: iShares Silver Trust ETF daily holdings rise to 10,537 tonnes from 10,482 tonnes prior; Highest since Dec 2014
- (CN) PBOC SETS YUAN MID POINT AT 6.4565 V 6.4589 PRIOR; Strongest Yuan setting since Dec 15th
- (CN) PBOC to inject CNY100B in 7-day reverse repos

***Market Focal Points/FX***
- Asian equity markets are generally higher, tracking gains on Wall St that were largely attributed to the softening of the greenback. Despite the start of the 3-day break in Tokyo, trading in USD/JPY remained volatile as the pair hit fresh 18-month lows on the cusp of ¥106. China Caixin manufacturing PMI remained in contraction for the 14th straight month, missing expectations. AUD was also volatile going into the close call at the RBA - AUD/USD rose over 40pips above 0.77 ahead of the announcement and then collapsed some 120pips to 0.7580's after the surprise rate cut. Aussie dollar trading should remain active as Australia govt unveils its FY16 budget with updated projections for growth and inflation at 05:30ET.

- China April Caixin deteriorated, matching a slight retreat in the official figures released over the weekend. Markit noted that new orders stagnated and export work was down for 5th straight month, as inventories remained slim. The release did reflect abating deflationary pressure as input costs rose at the quickest pace since January 2013. Resident economist also noted the economy lacks a solid foundation for recovery, recommending that the govt continues to closely monitor for risks of a further economic downturn.

- Reserve Bank of Australia sided with fixed income markets tipping in favor of more easing, even though nearly 80% of analysts expected a rate hold. RBA noted that reduced risks in housing inflation allowed it to focus on making economic recovery more sustainable in deciding to cut rates by 25bps to new record low of 1.75%. Moreover, RBA said labor indicators have turned more mixed (after a spate of stronger prints earlier this year), and economic growth has become more moderate. Latest multi-year lows in CPI figures were also deemed as decisive in RBA decision as the central bank noted price data were unexpectedly low, and coupled with cost pressures overseas, would risk a lower outlook for inflation than previously forecast.

- After yesterday's disappointing H1 result from Westpac, Australia's ANZ cash profit also missed estimates with A$2.78B v A$3.58Be, which included over A$700M in charges. NIMs were little changed just over 2%, customer deposit growth slowed to +2.5% v +12% prior, ROE declined to 12.2% v 14.5% y/y, and interim dividend was cut by 7% to A$0.80. After initially falling nearly 5%, ANZ shares were bid higher by over 4% as investors noted the cost controls would be constructive for the bank in the longer term.

- Fed's Williams spoke after US market close, stating the new normal of US interest rates may now be as low as 3%, adding that Treasuries are priced very low. Williams also urged gradual approach to policy normalization, noting it would be appropriate for the rates move up to take a couple of years. In reference to the FOMC's previous concern with global financial turbulence, Williams said the Fed cannot ignore other global economies.

***Equities***
US equities / ADRs:
- THC: Reports Q1 $0.45 adj v $0.33e, R$5.04B v $4.78Be; +6.2% afterhours
- YELP: Greenlight Capital (Einhorn) discloses new stake in Yelp - investor letter; +4.4% afterhours
- APC: Reports Q1 -$1.12 (ex items) v -$1.19e, R$1.67B v $1.81Be; -1.4% afterhours
- KMT: Reports Q2 $0.37 adj v $0.23e, R$498M v $483Me; -1.4% afterhours
- AIG: Reports Q1 $0.65 v $0.99e; -3.3% afterhours
- CYH: Reports Q1 $0.27 v $0.75e (unclear if comp), R$5.0B v $5.02Be; -12.6% afterhours

Notable movers by sector:
- Consumer staples: Woolworths WOW.AU -1.3% (Q3 result)
- Financials: Mirvac Group MGR.AU +2.7% (reaffirms guidance); ANZ Bank ANZ.AU +4.4% (H1 result)
- Materials: Zijin Mining 2899.HK +2.0% (Q1 result)
- Energy: China Shenhua Energy Co 1088.HK -0.9% (Q1 result)
- Utilities: Beijing Jingneng Clean Energy Co 579.HK +1.6% (Q1 result)

>>> US After Hours Summary: FN +12%, THC +7%, ONDK -24%, AIG -3% follo


After Hours Summary: FN +12%, THC +7%, ONDK -24%, AIG -3% following earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: FN +11.5%, THC +6.6%, BECN +7.3%, OI +5.9%, DENN +5.3%, ROG +5.1%, RGR +5%, TXRH +4.9%, AEIS +3.8%, IDTI +3.3%, VNR +2.9%, DHT +2.8%, GGP +2.3%

Companies trading higher in after hours in reaction to news: CORI +25.7% (receives favorable written feedback from the FDA on its Pre-Investigational NDA submission for once-weekly transdermal Corplex Donepezil), NWBO+17.9% (provides updates on its Phase I and II Trials, Scientific Advisory Board and Nasdaq compliance), YELP +4.5% (headlines Einhorn has highlighted a new YELP position in his Q1 letter), MUX +3.1% (purchases 'attractive target' near El Gallo Mine for $250K), TRVN +2.9% (announces 'successful' completion of the End-of-Phase 2 Meeting process with the FDA; reaches agreement on key elements of the Phase 3 program to support a NDA for oliceridine)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ONDK -24.2%, CYH -11.1%, BETR -9.9%, OLN -8.4%, QLYS -4.3%, AIG -3.3%, CHGG -3.2%, APC -1.3%

Companies trading lower in after hours in reaction to news: CUR -11.8% (commences common stock offering for undisclosed amount), ADRO -5.8% (files for $300 mln mixed securities shelf offering), PRAH -4.6% (announces 5 mln common share secondary offering by selling shareholders)

*EINHORN’S MAIN GREENLIGHT HEDGE FUND DECLINES 0.1% IN APRIL

*EINHORN’S MAIN GREENLIGHT HEDGE FUND DECLINES 0.1% IN APRIL
*EINHORN'S GREENLIGHT IS UP 3.1% YTD; FLAT IN APRIL: CNBC
*EINHORN’S GREENLIGHT REPORTS NEW STAKE IN YELP: 1Q LETTER
*EINHORN’S GREENLIGHT REPORTS NEW STAKE IN PVH CORP.: 1Q LETTER
*GREENLIGHT RE-INITIATED POSITIONS IN AMERICAN CAPITAL, HATTERAS
*PIONEER NATURAL REMAINS A SHORT FOR GREENLIGHT'S EINHORN
*EINHORN’S GREENLIGHT ADDED A NEW MACRO POSITION IN NATURAL GAS
*EINHORN'S GREENLIGHT EXITED CHICAGO BRIDGE, SNC-LAVALIN STAKES
*JC PENNEY SHORT FROM 2014 COVERED AT A PROFIT, GREENLIGHT SAYS
*EINHORN'S GREENLIGHT EXITED REMAINING INVESTMENT IN GREEK BANKS

FT : French regulator orders Engie to raise gas prices for compa

French regulator orders Engie to raise gas prices for companies

The French competition authority has ordered Engie to raise its natural gas prices for companies, saying that in some cases the utility was engaging in “predatory pricing” to the detriment of competitors.
The measure against the former monopoly, which still has about 80 per cent of the residential French gas market and more than 60 per cent of the non-residential market, followed a complaint by a rival Direct Energie.

The Autorité de la Concurrence on Monday said “Engie had fixed the prices of its individual market offers … without taking the real costs into account, at the risk of establishing predatory or exclusionary pricing.”
The competition authority also said it is conducting an investigation into the group’s residential gas operations. It is asking if the company is using regulated gas prices in some areas to offer overly cheap rates in others.
“Engie has always applied — scrupulously and with the highest rigour — the rules resulting from legal evolutions of the gas markets, always respecting its clients,” the company said in a statement on Monday. It added that it would look into launching an appeal in the Paris courts.
The antitrust body said it would be several months before they reached a final conclusion in the case.
But if the company is found to have abused its dominant position it could face a fine of as much as €7bn, or 10 per cent of its worldwide annual turnover.
Engie sells gas to retail customers at regulated tariffs set by energy regulator CRE, but also sells gas at unregulated prices to some retail and corporate customers in competition with new market entrants.
The energy company has its annual general meeting on Tuesday during which Isabelle Kocher is set to formally become chief executive, replacing Gérard Mestrallet, who will stay on as chairman.
Ms Kocher wants the company to reduce its exposure to unregulated gas and power markets in the US and Europe. This comes in the wake of falling energy prices, triggered by an oversupply of fossil fuels and government subsidies for renewable energy.
Engie plans to sell €15bn worth of assets over the next three years in energy exploration and production activities, coal-fired power plants and US gas operations to reduce its reliance on unregulated activities.
The plan also involves €22bn of investment in renewable energy, gas networks, gas storage and LNG terminals and in energy services such as heating and cooling networks.
Lower oil prices have put severe pressure on the electricity market as well. Since mid-2015 electricity prices in Europe have fallen between 15 per cent and 40 per cent depending on the market, according to Moody’s.