>>> Asian Update

Asian Mid-session Update: US Treasury currency report softens view on CNY; RBA minutes show no hints of easing bias


***Economic Data***
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 113.3 v 115.6 prior
- (KR) South Korea Sept PPI M/M: -0.3% v -0.5% prior; Y/Y: -4.5% (14th straight decline) v -4.4% prior
- NPD: Sept US total video game sales $1.0B, -9% y/y

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.3%, S&P/ASX -0.5%, Kospi +0.1%, Shanghai Composite -0.1%, Hang Seng -0.5%, Dec S&P500 -0.1% at 2,025

***Commodities/Fixed Income***
- Dec gold -0.4% at $1,168/oz, Dec crude oil +0.2% at $46.39/brl, Dec copper -0.5% at $2.35/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 3.5 tonnes to 697.3 tonnes
- JGB: (JP) Japan's MoF sells ¥1.10T in 1.2% (1.2% prior) 20-year JGBs; Avg yield: 1.078% v 1.164% prior; bid-to-cover: 3.04x v 2.56x prior
- USD/CNY: (CN) PBoC sets yuan mid point at 6.3614 v 6.3527 prior setting; Weakest Yuan setting since Sept 29th
- (CN) PBoC to inject CNY25B in 7-day reverse repos (31st consecutive injection, smallest injection since mid-July )

***Market Focal Points/FX***
- Asian equity markets are mixed, with Australia's S&P/ASX as a regional underperformer. The aftermath of the soft China economic data overnight continues to weigh heavily on basic materials names, as shares of BHP and Rio Tinto are both down over 2%. Decline is somewhat exacerbated by a fairly neutral to positive set of RBA policy meeting minutes from this month, denting a minority view of economists (including Goldman) anticipating more near term RBA easing. RBA said that there is more evidence of economic rebalancing toward the non-mining sector, that labor market strengthened and unemployment rate would not rise further. Australia's 3-year rates ticked up about 2bps to 1.85% on the minutes release and AUD/USD strengthened some 20pips to 0.7275.

- Other USD majors were little changed in Asian trading, though there was some volatility in the far east FX after the release of the Semi-annual Currency Report from the US Treasury. The report once again did not declare any major trading partner as "currency manipulator", and actually softened its stance on China in spite of the August devaluation. The Treasury said CNY remains below appropriate "medium term valuation", compared to prior view of being "significantly undervalued", in a nod to slowing Chinese economic growth justifying the response by Chinese authorities. The Treasury also called for more policy transparency, stating the devaluation underscores its importance. Likewise, KRW weakened by about 1% after the US report called South Korea interventions as roughly balanced. For Japan, the Treasury is calling for more efforts on fiscal policy and reduced reliance on JPY depreciation to steer its economy.

- In notable Chinese press reports, influential former PBoC adviser Li said China GDP wold be about 6.8% in 2015 and 6.9% in 2016 as the economy bottoms out in H1 of next year. A separate report anticipated a moderate rebound in Q4, even though analysts continued to question the accuracy of Q3 GDP print in light of a more pronounced slowdown of other datapoints.

***Equities***
US equities / ADRs:
- ERII: Signs $125M 15-year license with Schlumberger to provide exclusive rights to its VorTeq Hydraulic Fracturing Technology; +124% afterhours
- SNDK: Said to be in late stage deal talks with WDC, a merger announcement possible by this week; +7.6% afterhours
- FLEX: Reports Q2 $0.27 v $0.25e, R$6.32B v $6.15Be; +6.7% afterhours
- ETH: Guides Q1 $0.45-$0.46 v $0.45e; +1.7% afterhours
- IBM: Reports Q3 $3.34 v $3.33e, R$19.3B v $19.6Be; -4.8% afterhours
- ZGNX: Continues to expect Phase 3 ZX008 Clinical Program to begin in Q415; -7.4% afterhours
- HXL: Reports Q3 $0.55 v $0.59e, R$448.8M v $466Me; To repurchase additional $250M in common stock (5.6% of market cap); -8.3% afterhours
- RMBS: Reports Q3 $0.14 v $0.14e, R$73.8M v $76.0Me; -15.4% afterhours
- NEOS: Provides Cotempla XR-ODT FDA Update; -13.7% afterhours

Notable movers by sector:
- Consumer discretionary: Nine Entertainment Co Holdings NEC.AU -1.2% (Apollo to sell stakes)
- Financials: PAX Global Technology 327.HK +4.0% (9-month result); China State Construction Holdings 3311.HK +3.5% (9-month result); Australia and New Zealand Banking Group ANZ.AU -1.4%, Westpac Banking Corp WBC.AU -1.1% (Australia banking regulator's liquidity inquiry)
- Industrials: Anhui Ankai Automobile Co 000868.CN +4.6% (9-month result); Sinosteel Engineering & Technology Co 000928.CN -3.3% (parent extends bond redemption date); Aurizon Holdings AZJ.AU -0.8% (Q1 result)
- Technology: AVIC International Holdings 161.HK -2.9% (terminates acquisition proposal); Fujian Newland Computer Co 000997.CN +7.1% (9-month result); Sichuan Changhong Electric Co 600839.CN +1.7% (9-month result)
- Materials: Newcrest Mining NCM.AU -5.1% (Q1 result); OZ Minerals OZL.AU -4.5% (gold price declines); Nitto Denko Corp 6988.JP +0.5% (H1 result speculation)
- Energy: China Shenhua Energy Co 1088.HK -2.3% (Sept result); Oil Search OSH.AU -2.0% (Q3 result); Yanzhou Coal Mining Co. 1171.HK -1.7% (Q3 coal business result)
- Telecom: KDDI Corp 9433.JP +6.0% (to start power retail sales service)
- Utilities: China Datang Renewable Power Co 1798.HK -1.9% (Q3 power generation); Huaneng Power International 600011.CN +2.3%(Q3 power generation)

>>> US After Hours Summary: TACO +13.6%, HSTM +13.1%, FLEX +

After Hours Summary: TACO +13.6%, HSTM +13.1%, FLEX +7.7%, RMBS -19.4%, HXL -9.2%, IBM -4.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: TACO +13.6%, HSTM +13.1%, FLEX +7.7%, SONC +6.7%, GIG +4.3%, ETH +1.7%, CE +1.6%, VLRS +0.8%, STLD +0.8%

Companies trading higher in after hours in reaction to news: ERII +133.7% (signed 15-year license with Schlumberger (SLB) to provide exclusive rights to its VorTeq hydraulic fracturing technology; deal includes $125 mln in upfront payments paid in stages), ONE +21.7% (sold its Campus Labs data analytics business to Leeds Equity Partners, for $91 mln in cash), SNDK +8.0% (Bloomberg reporting co is in discussion to be acquired by Western Digital (WDC)), MPAA +1.6% (to replace OMG in the S&P SmallCap 600), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: RMBS -19.4%, HXL -9.2%, IBM -4.9%, WIBC -1.4%, ETN -1.4%, SIX -0.7%, ELS -0.6%, IEX -0.6%, HA -0.5%

Companies trading lower in after hours in reaction to news: NEOS -17.7% (received notification that the FDA has identified deficiencies that preclude discussion of labeling & postmarketing requirements/commitments for Cotempla XR-ODT), ZGNX -7.4% (co received a request from the FDA for additional information related to the proposed Phase 3 program for ZX008 prior to the FDA declaring the Investigational New Drug Application effective), MSB -4.9% (reported that due to a delay in the reporting of Cliffs Natural Resources (CLF) regarding shipments of iron ore products, no distribution will be paid in November 2015), WDC -1.9% (lower following Bloomberg report that co may acquire SanDisk (SNDK)), SGY -1.4% (filed mixed securities shelf offering)

Fwd:Briefing; WRAPX SCANX; After Hours Summary: TACO +13.6%, HSTM +13.1%, FLEX +7.7%

After Hours Summary: TACO +13.6%, HSTM +13.1%, FLEX +7.7%, RMBS -19.4%, HXL -9.2%, IBM -4.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: TACO +13.6%, HSTM +13.1%, FLEX +7.7%, SONC +6.7%, GIG +4.3%, ETH +1.7%, CE +1.6%, VLRS +0.8%, STLD +0.8%

Companies trading higher in after hours in reaction to news: ERII +133.7% (signed 15-year license with Schlumberger (SLB) to provide exclusive rights to its VorTeq hydraulic fracturing technology; deal includes $125 mln in upfront payments paid in stages), ONE +21.7% (sold its Campus Labs data analytics business to Leeds Equity Partners, for $91 mln in cash), SNDK +8.0% (Bloomberg reporting co is in discussion to be acquired by Western Digital (WDC)), MPAA +1.6% (to replace OMG in the S&P SmallCap 600), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: RMBS -19.4%, HXL -9.2%, IBM -4.9%, WIBC -1.4%, ETN -1.4%, SIX -0.7%, ELS -0.6%, IEX -0.6%, HA -0.5%

Companies trading lower in after hours in reaction to news: NEOS -17.7% (received notification that the FDA has identified deficiencies that preclude discussion of labeling & postmarketing requirements/commitments for Cotempla XR-ODT), ZGNX -7.4% (co received a request from the FDA for additional information related to the proposed Phase 3 program for ZX008 prior to the FDA declaring the Investigational New Drug Application effective), MSB -4.9% (reported that due to a delay in the reporting of Cliffs Natural Resources (CLF) regarding shipments of iron ore products, no distribution will be paid in November 2015), WDC -1.9% (lower following Bloomberg report that co may acquire SanDisk (SNDK)), SGY -1.4% (filed mixed securities shelf offering)

>>> Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional

Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional share repurchase

Reports Q3 (Sep) earnings of $0.55 per share, $0.04 worse than the Capital IQ Consensus of $0.59; revenues fell 0.7% year/year to $448.8 mln vs the $462.53 mln Capital IQ Consensus.
Co issues downside guidance for FY15, sees EPS of $2.28-2.34 vs. $2.40 Capital IQ Consensus Estimate, down from $2.33-2.43 prior guidance; sees FY15 revs of $1.84-1.86 bln vs. $1.9 bln Capital IQ Consensus Estimate, down from previous guidance of $1.85-$1.9 bln.
HXL notes lowered sales outlook due to lower Space and Defense sales
Says new Commercial Aerospace programs remain on track and Commercial Aerospace sales were 7.4% higher than last year in constant currency.
Board authorizes $250 mln of additional share repurchases, after repurchasing $100 million of shares during quarter.

>>> Rambus misses by $0.01, misses on revs; guides Q4 revs below consensus

Rambus misses by $0.01, misses on revs; guides Q4 revs below consensus

Reports Q3 (Sep) earnings of $0.14 per share, $0.01 worse than the Capital IQ Consensus of $0.15; revenues rose 5.9% year/year to $73.8 mln vs the $76.21 mln Capital IQ Consensus.
Co issues downside guidance for Q4, sees Q4 revs of $71-77 mln vs. $83.50 mln Capital IQ Consensus Estimate. Achieving revenue in this range will require that the Company sign new customer agreements for patent and solutions licensing among other matters.

>>> Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional

Hexcel misses by $0.04, lowers FY15 guidance; authorizes $250 mln additional share repurchase

Reports Q3 (Sep) earnings of $0.55 per share, $0.04 worse than the Capital IQ Consensus of $0.59; revenues fell 0.7% year/year to $448.8 mln vs the $462.53 mln Capital IQ Consensus.
Co issues downside guidance for FY15, sees EPS of $2.28-2.34 vs. $2.40 Capital IQ Consensus Estimate, down from $2.33-2.43 prior guidance; sees FY15 revs of $1.84-1.86 bln vs. $1.9 bln Capital IQ Consensus Estimate, down from previous guidance of $1.85-$1.9 bln.
HXL notes lowered sales outlook due to lower Space and Defense sales
Says new Commercial Aerospace programs remain on track and Commercial Aerospace sales were 7.4% higher than last year in constant currency.
Board authorizes $250 mln of additional share repurchases, after repurchasing $100 million of shares during quarter.

>>> IBM beats by $0.04, misses on revs; lowers FY15 guidance (149.22 -1.17)

IBM beats by $0.04, misses on revs; lowers FY15 guidance  

Reports Q3 (Sep) earnings of $3.34 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $3.30; revenues fell 13.9% year/year to $19.28 bln vs the $19.64 bln Capital IQ Consensus. Down 1% adjusting for currency (9 points) and the divested System x business (4 points).
Revenues from the Software segment were down 10% to $5.1 bln (down 3% adjusting for currency) compared with the third quarter of 2014.
Revenues from the company's strategic imperatives --- cloud, analytics, and engagement --- increased 17% year-to-year (up 27% adjusting for currency and the divested System x business
Co issues downside guidance for FY15, lowers EPS to $14.75-15.75, excluding non-recurring items, from $15.75-16.50 vs. $15.68 Capital IQ Consensus Estimate; lowers FCF to flat from a modest increase YoY.