Metrovacesa in final talks to sell logistics unit
Metrovacesa is in advanced talks to sell its logistics unit Parques Empresariales Gran Europa, El Confidencial reported without citing sources. The Spanish property company expects to close a sale in the first quarter of 2016, the report said.
Metrovacesa received offers for the portfolio two weeks ago, the Spanish-language report went on to say. Among suitors, market sources named CBRE, GreenOak and Merlin Properties, El Confidencial said. The operation is expected to close at more than EUR 80m.
Metrovacesa holds 50% of Parques Empresariales Gran Europa and the entity Parques Intermodales Gran Europa holds the other 50%, the report said. Its assets were valued at EUR 94.9m in 2014.
El Confidencial
Dow-0.14% S&P-0.22% Nasdaq-0.15% Russell-0.56% VIX 16.91 (+7.43%)
US Market closed slightly lower in low volume @ 600mil shares. Equities followed the energy sector (-1.8%) and crude oil (-3.3% @ $36.88/bbl). energy component saw additional selling pressure after China reported its sixth consecutive monthly decline in industrial profits (-1.4% in November). US After Hours ZN +8.4% after City of Nazareth grants approval of their exploratory drilling request; PBY +6.3% after Carl Icahn raises cash bid to $18.50/share. Asian equity indices are marginally higher, however the prevailing theme of pressure from the energy space has carried over from the US session. PetroChina and CNOOC were among the laggards in Hong Kong, as WTI crude has pulled back below the $37/brl mark. After Saudi Arabia announced lower expected revenue from oil sales, traders anticipate the kingdom to defend its market share and not succumb to pressure of reducing output. Late in US hours, Saudi Aramco chairman noted that oil glut is still expected to ease in 2016, with supply in North America having plateaued. Shanghai Academy of Social Sciences forecast 2015 GDP of 6.9%, and slowing in 2016 to 6.8% and 2017 to 6.5%. Resident researcher said sector performance will vary based on external conditions like global commodity prices, geographical politics and Chinas relations with its core trading partners. Japan Center for Economic Research (JCER) estimated Nov GDP at +0.1% m/m v +0.4% in Oct - the 2nd straight month of increase. Exports growth slowed to +0.1% v +1.1% prior, while CapEx turned negative at -1.0% v +1.3% prior. The lack of consistency in these key sectors of the economy help explain growing dissatisfaction with the progress of Abenomics - according to the latest Nikkei survey, 44% give a rating of disapproval to Abenomics vs 38% approval.
Nikkei +0.58% Hang Seng +0.36% Shanghai +0.29%
Eur$1.0976 JPY 120.33 CNY 6.4857 GBP 1.4907 CHF 0.9881 RUB$ 72.2746 WTI $36.93 +0.31%
S&P +0.11% EuroStoxx+0.83% Dax+0.81% SMI+0.52%
Macro :
- Iran Adding to Global Oil Glut Dims Hopes for Recovery Next Year
- Iran Proposes Oil Price of $40/Bbl for Next Fiscal Year: IRNA
- Marc Faber Takes on Yellen With Recession Call, Likes Treasuries
- Crazy Ending for Top European Stock ETF as Withdrawals Quicken
Keep an eye on :
- ABG SM : Abengoa Creditors Seek Banks for Future Liquidity Needs: Cinco
- ADS GY : Company said to deny that it is facing pressure to offload Reebok - FT http://on.ft.com/1Vne4PF
- ANA SM : Acciona to Acquire BTG Pactual Stake in ATLL, Expansion Says
- CS FP : French Invested EU22.9b in Life Insurance Jan.-Nov.: Les Echos
- Banca Leonardo : Banca Leonardo Drops IPO Plan, Weighs Partnership: Sole --> Natixis potential partner for IB ?
- BOL SS : Boliden May Consider Acquisitions of Mines, Dagens Industri Says
- EDP PL : EDP Renovaveis Sells Stake in Wind Assets in Poland, Italy
- EOAN GY : EON May Lose Deutsche Bahn Contract Over Datteln: Handelsblatt
- FDX US : FedEx Ties Holiday Delay to ‘Unprecedented’ E-Commerce Surge (1)
- FCA IM : Fiat Chrysler to Be Removed From MSCI Large Cap Index
- GAM SM : Enters partnership with Iberdrola to build four windfarms in Costa Rica with total capacity of 80MW
- MT IM : Maire Tecnimont Completes Medium to Long-Term Debt Refinancing
- MOR GY : Morphosys Seeks New Partner to Develop MOR202: Boersen-Zeitung
- OCI NA : N. Sawiris Buys 3,723 OCI Shares, AFM Regulatory Filing Shows
- PBY US : Pep Boys Says Icahn’s Increased $18.50/Shr Proposal Is Superior
- SAN SM : Santander to Pay a 0.05 Euro/Share Dividend: Filing
- FP FP : French Diesel Prices Fall Below EU1 a Liter: Les Echos
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Adidas CFO says investors are not pushing for Reebok sale
Adidas is not facing pressure to trim its portfolio beyond the sale of footwear brand Rockport and several golf labels, despite the recent arrival of three big activist shareholders, the German sportswear group’s chief financial officer has said.
Over the course of 2015, the US investor Mason Hawkins, Belgium’s Albert Frère and the Egyptian billionaire Nassef Sawiris have all built up stakes in Adidas. Mr Hawkins and Mr Sawiris earlier this month set up a combined entity to co-invest in European companies.
Their purchases have prompted speculation that they could push for the German group to offload low-performing assets such as Reebok or the US golf brand TaylorMade.
One top 20 investor said that shareholders expect the trio to demand a role in the search for a successor to Herbert Hainer, Adidas’s longstanding chief executive, whose contract expires in 2017.
But Robin Stalker, Adidas’s chief financial officer, said that the investors had not been pushing for the group to sell assets. “I’ve never had a conversation where anyone has given me any pressure about anything,” he said in an interview with the Financial Times
Mr Stalker conceded that the company — which posted operating profits of €1.08bn from sales of €12.7bn in the first nine months of the year — had not yet met its ambition of a double digit operating margin.
But he added that Adidas as had “good discussions” with Mr Hawkins’ Southeastern Asset Management and Mr Frère’s GBL. He said the group had not yet spoken to Mr Sawiris, who has built up a stake via his investment vehicle NNS Holding.
“What has been of interest to everybody is that we have said that we are prepared to look at our portfolio. We’ve done a very good review of that,” said Mr Stalker. After selling off footwear business Rockport, Adidas indicated it might sell its Adams and Ashworth golf brands.
The group plans to decide in the first quarter of next year whether to part company with TaylorMade as well, which, like other golf brands, has been hit by a decline in the popularity of the sport. It has lost money this year.
Mr Stalker said that Adidas would make the decision based on how TaylorMade fits into its overall strategy. “We are more in soft goods and footwear than we are in hard goods. The TaylorMade part of golf is hard goods . . . If we were to decide to divest, it has to be for the right price. We don’t need to sell TaylorMade,” he said.
The arrival of the new investors comes at a critical juncture for Adidas, which in March launched a new strategy in a bid to boost profitability and close the gap on its arch-rival Nike.
A key part of the strategy is a marketing push in the US, where Adidas has been investing heavily to recover ground after losing its second place in the market to Under Armour last year.
Mr Stalker concedes that Adidas’s US business has been an “area of scepticism in some parts of our investor community” because of the company’s lack of scale in comparison to Nike.
But he said he is confident that Adidas’s offensive in the country — including signing sponsorship deals with an additional 250 American footballers and a similar number of baseball players — will bear fruit. The group will also double the number of basketball players it has under contract over the next couple of years.
After Hours Summary: ZN +8.4% after City of Nazareth grants approval of their exploratory drilling request; PBY +6.3% after Carl Icahn raises cash bid to $18.50/shareAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings: Nothing of Interest
Companies trading higher in after hours in reaction to news: ZN +8.4% (City of Nazareth grants approval of their exploratory drilling request from Israel's Northern District committee), PBY +6.3% (Icahn raises cash bid to $18.50/share; above Bridgestone's $17.00/share cash offer)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings: Nothing of Interest
Companies trading lower in after hours in reaction to news: RMBS -1.5% (renews patent license agreement with Toshiba (TOBSF) for three years)
Asian Mid-session Update: Energy sector under pressure as Oil retreats from last week's gains
***Economic Data***
- (KR) South Korea Nov Department Store Sales y/y: 1.0% v +11.4% prior; Discount store sales y/y: -3.7% v -0.5% prior
- (PH) Philippines Oct Trade Balance: -$1.9B v -$1.4Be; Imports $6.5B v $6.3B prior
- (VN) Vietnam 2015 YTD Retail Sales: 9.5% (biggest increase since 2011)
***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 flat, S&P/ASX +0.9%, Kospi flat, Shanghai Composite +0.2%, Hang Seng +0.3%, Feb S&P500 +0.1% at 2,050
***Commodities/Fixed Income***
- Feb gold +0.3% at $1,072/oz, Feb crude oil +0.1% at $36.84/brl, Mar copper +0.7% at $2.10/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 1.2 tonnes to 643.6 tonnes
- (SA) Saudi Aramco chairman: Oil glut to ease in 2016; Supply from N America, including US shale, continues to decline - financial press
- (KR) South Korea Energy Ministry: To lower city gas prices by 9%, effecitve Jan 1st - Korean press
- (CN) 9 of the largest copper smelters in China to reduce sales of spot metal by 200K in Q1 2016 in order to counter lower prices - financial press
- (CN) PBoC to inject CNY10B in 7-day reverse repos (51st consecutive injection); Offer yield at 2.25%, unchanged from prior
- USD/CNY: (CN) PBoC sets yuan mid point at 6.4864 v 6.4750 prior; weakest Yuan setting since June 2011
***Market Focal Points/FX***
- Asian equity indices are marginally higher, however the prevailing theme of pressure from the energy space has carried over from the US session. PetroChina and CNOOC were among the laggards in Hong Kong, as WTI crude has pulled back below the $37/brl mark. After Saudi Arabia announced lower expected revenue from oil sales, traders anticipate the kingdom to defend its market share and not succumb to pressure of reducing output. Late in US hours, Saudi Aramco chairman noted that oil glut is still expected to ease in 2016, with supply in North America having plateaued.
- China central bank's Q4 Monetary Policy Committee Meeting draft unveiled overnight reiterated the view of prudent monetary policy approach and flexibility in using various tools. Today's open market operations by the PBoC were uneventful, with another CNY10B offered at the same 2.25% 7-day reverse repo tool. The central bank did however resume its notable weakening of CNY midpoint, announcing a fresh 4 1/2 year low fix. Separately, Shanghai Academy of Social Sciences forecast 2015 GDP of 6.9%, and slowing in 2016 to 6.8% and 2017 to 6.5%. Resident researcher said sector performance will vary based on external conditions like global commodity prices, geographical politics and Chinas relations with its core trading partners.
- In Japan, the Japan Center for Economic Research (JCER) estimated Nov GDP at +0.1% m/m v +0.4% in Oct - the 2nd straight month of increase. Exports growth slowed to +0.1% v +1.1% prior, while CapEx turned negative at -1.0% v +1.3% prior. The lack of consistency in these key sectors of the economy help explain growing dissatisfaction with the progress of Abenomics - according to the latest Nikkei survey, 44% give a rating of disapproval to Abenomics vs 38% approval.
- In FX, USD majors remained contained to narrow ranges. USD/JPY traded in 20pip range above 120.20, EUR/USD was also in a 20pip window above 1.0960, while AUD/USD was up nearly 30pips from the lows as high as 0.7270. NZD/USD was a notable outperformer with a 30pip rally to 0.6870 - a 2-month high.
***Equities***
US equities / ADRs:
- ZN: Granted Approval of Their Exploratory Drilling Request (Hafkada) From Israels Northern District Committee; +8.4% afterhours
- PBY: Icahn sends letter; raises offer to $18.50/shr (vs $17/shr from Bridgestone) - filing; +6.3% afterhours
- WSH (+2.5% afterhours): To be added to S&P500, replacing FOSL, which will move to the S&P400; ADPT (+3.8% afterhours) added to S&P600
- LOCK: Enters into credit agreement with Equifax - filing; +0.6% afterhours
Asia by sector:
- Consumer discretionary: Oriental Land 4661.JP +0.4% (raising prices at theme park)
- Industrials: Hyundai Motors -1.0% (workers approve wage agreement)
- Energy: Beach Energy BPT.AU -7.6% (Norges Bank sells stake)
- Financials: Evergrande Real Estate 3333.HK (halted ahead of major transaction)
- Technology: Toshiba 6502.JP +1.2% (seeking ¥300B bank funding)