Billionaire shareholder activist Carl Icahn is now the latest to attack the 1 percent.
“I’m saying the wealthy, the elitists, are a little oblivious to the problems” facing the country, Icahn told The Post. “They are my friends but they feel a certain sense of entitlement.”
Icahn, speaking ahead of a 15-minute video expected to be released on Tuesday, said a pal, a fellow 1-percenter, asked him recently what the first thing he would do if he were elected president, and he replied: “I told him I would make you pay some f- -king taxes.”
In the video, called “Danger Ahead,” Icahn, who is backing Donald Trump’s candidacy, gives his views on the US economy — and Trump.
* From growth to productivity, from PE to FCF Yield
Growth has been easy to achieve in the past decade: store footprint, price, and mix have been the drivers to capture booming demand and mechanically grow profits. This was helped by demographics in China and emerging markets. Today, the luxury market is more competitive and crowded, demand has moderated, and consumers are less predictable. However, luxury brands have opportunities to improve productivity in stores, leading to unprecedented cash generation, hence our refocus on EV and FCF metrics. Productivity, cash flow, and valuation metrics identify LVMH (Buy), Richemont (from Hold to Buy), and Prada (from Hold to Buy) as the names with the greatest potential.
* Verbund upgraded from Sell to Hold
* Share price collapse is not yet a buying opportunity
* EDF (Sell) and Fortum (Sell) still look expensive
* Waiting for nuclear risks to clear on E.ON (Hold) and RWE (Hold)
* Engie (Buy) still looks like the clearest value play
Valuation and risks
We value the generators using a sum of the parts approach with DCFs for power stations based on $60/bbl oil. For E.ON and RWE we set targets based on 13x earnings risked for a 20% increase in nuclear provisions and 3.5x net debt/EBITDA. Upside risks include a rebound in commodity prices, tight power markets and reassurance on leverage. Downside risks include lower discount rates for nuclear liabilities and credit rating downgrades.
Asian markets are mixed and trading was thin, with several indices closed for Fall festival and with US jobs data looming later in the week. Nikkei225 is down over 1%, as weekend commentary from PM Abe suggested the govt is not considering compiling an extra budget, Tankan data this coming Thursday. China industrial profits contracted by their largest amount in several years, with the Stats Bureau blaming rising input costs and decline in Yuan. Also of note in China, CCIEE official acknowledged the precarious power consumption and freight volume indicators, but also pointed at industrial restructuring as a key factor in analyzing the economy. IMF head Lagarde spoke with French press and effectively flagged a downgrade to global growth, calling the 3.3% 2015 GDP objective set in July as no longer realistic. Lagarde said developing economies' growth is picking up, as emerging markets slow.
Nikkei -1.60% Hang Seng +0.43% Shanghai -0.28%
Eur$ 1.1197 CNY 6.3693 GBP 1.5197 JPY 120.26 EURCHF 1.09570 RUB$ 65.4350 BRL 3.9755 WTI $45.18 (-1.14%)
S&P -0.03% EuroStoxx -1.16$ Dax -1.25% SMI -0.99%
Macro :
- IMF Set to Cut Global Growth Forecasts, Lagarde Tells Les Echos
- China’s Aug. Industrial Companies’ Profit Falls 8.8% Y/y
- Putin May Accept Peacekeepers in Ukraine’s East: Independent
- Germany to Speed Up Residence Permits for Syrians: Der Spiegel
- EU Real Drive Emission Diesel Tests Targeted for Jan: Hendricks
Keep an eye on :
- ABBN vx : Cevian Met With ABB Chairman for First Time: SonntagsZeitung
- AIR FP : Airbus Rules Out Layoffs in Defense & Space Unit: FAZ
- ATO FP : Airbus, Atos Sign Cybersecurity Pact, Les Echos Says
- AF FP : Air France Offers EU100 Mln to Employees in 2017 If Cuts Work
- ALV GY : Allianz Considers Selling Assets Within Euro Portfolio: FT
- BP/ LN : The $12 Billion Reason BP Isn’t Worried About a Hostile Takeover
- BARC LN : Barclays in Talks W/ Buyers for Bank’s Brazilian Assets: Sky
- BAYN GY : Bayer Says FDA Approves New Version of Betasearon Autoinjector
- BOSCH : Bosch Warned VW Over Planned Use of Software in 2007: Bild
- DAI GY : Daimler Says Van Software Updates Not Related to VW Scandal
- ENGI FP : Engie Not Sure It Can Restart 2 Belgian Reactors Nov. 1: Figaro
- ENI IM : Eni May Begin Goliat Arctic Oil Output Within a “Few Weeks”:FT
- SFER IM : Ferragamo CEO Michele Norsa Repeats Core Profit Outlook: Reuters
- SDF GY : K+S Plans Acquisitions, Sites in Asia, Australia: Frankfurter
- MEO GY : Metro Said to Abandon Talks to Buy Oetker’s Fine Foods Supplier
- NOVOB DC : Novo Nordisk Sees Introducing Tresiba in U.S. in 1Q
- PAH3 GY : Porsche Buys 1.5% Volkswagen Stake From Suzuki to Expand Holding
- PAH3 GY : Volkswagen Unit Porsche Said to Name Oliver Blume as New Chief
- ROG Vx ; Roche Says Positive PDL1 Data in Lung, Bladder Cancer Trials
- RR/ LN : Rolls-Royce May Move Research If U.K. Cuts Support: Sunday Times
- RSA LN : RSA to Sell Russian, Mideast Divisions, Sunday Times Reports
- RYA LN : Ryanair Can Be ‘Amazon for Travel,’ CEO O’Leary Tells FT
- SAB LN : AB InBev May Submit GBP70b SAB Miller Bid Within Days: S. Times
- SAB LN : SABMiller Said to Seek At Least 4,500p/Share: Times (Earlier)
- SZG GY : Salzgitter CEO sees eventual merger with Aurubis - Reuters
- TIT IM : Telecom Italia wants to close Inwit sale or merger by year-end - Reuters
- TSLA US : Tesla Opens First European Factory in the Netherlands, FT Says
- UBSN VX : Netherlands Asks Swiss for UBS Account Holder Names: Le Temps
- VOW3 GY : Volkswagen Internal Evaluation Found About 5M Cars Affected
- VOW3 GY : VW Spvy BD Meeting Ended, Mueller Elected CEO: Handelsblatt
- VOW3 GY : Italy’s Renzi Says VW Should Be ‘Severely Punished’: Ansa
- VOW3 GY : Switzerland Sets Temporary Sales Ban on Affected VW Cars: AWP
- VOW3 GY : Suzuki Motor Says It Sold All Its Shares of Volkswagen
- VOW3 GY : Volkswagen Employee Warned Carmaker Over Software in 2011: FAZ
- VOw3 GY : VW Asks Italy Dealers to Halt Sales of 2,500 Cars, Ansa Reports
- VOW3 GY : Spain Says VW Must Repay Efficiency Subsidies, El Pais Reports
>>> Up
*BBVA RAISED TO HOLD VS SELL AT BANKHAUS LAMPE
*EDENRED RAISED TO BUY VS NEUTRAL AT UBS
*HOME RETAIL RAISED TO BUY VS HOLD AT CANTOR
*MELROSE RAISED TO ADD VS HOLD AT NUMIS
*MORRISON RAISED TO MARKET PERFORM AT BERNSTEIN
*REMY COINTREAU RAISED TO OUTPERFORM AT BERNSTEIN
*REPSOL RAISED TO MARKET PERFORM AT BMO CAPITAL MARKETS
*REPSOL RAISED TO NEUTRAL VS REDUCE AT NOMURA
*SABMILLER RAISED TO BUY VS HOLD AT SOCGEN
*SMITHS GROUP RAISED TO HOLD VS REDUCE AT NUMIS
*SPIRAX-SARCO RAISED TO BUY VS NEUTRAL AT BOFA
*SUEDZUCKER RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*ULTRA ELECTRONICS RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*VESUVIUS RAISED TO BUY VS NEUTRAL AT BOFA
>>> Down
*ANIMA CUT TO NEUTRAL VS BUY AT CITI
*BP RATED NEW OUTPERFORM AT BMO CAPITAL MARKETS
*BUREAU VERITAS CUT TO EQUALWEIGHT AT MORGAN STANLEY
*LEONTEQ CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
*RYANAIR RATED NEW BUY AT EVERCORE ISI, PT $100
>>> PT Change
>>> Initiation
*ENI RATED NEW UNDERPERFORM AT BMO CAPITAL MARKETS
>>> Call
Asian Mid-session Update: China industrial profits fall further; IMF's Lagarde hints of downward growth revisions
***Economic Data***
- (CN) CHINA AUG INDUSTRIAL PROFITS Y/Y: -8.8% (3rd straight decline) V -2.9% PRIOR; YTD: -1.9% V -1.0% PRIOR
- (NZ) NEW ZEALAND Q2 WESTPAC EMPLOYMENT CONFIDENCE INDEX: 99.3 V 102.8 PRIOR; 3-YEAR LOW
***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -1.1%, S&P/ASX +0.8%, Kospi closed, Shanghai Composite flat, Hang Seng closed, Dec S&P500 -0.3% at 1,913
***Commodities/Fixed Income***
- Dec gold +0.1% at $1,146/oz, Nov crude oil -1.0% at $45.26/brl, Dec copper +0.4% at $2.29/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 3.7 tonnes to 684.1 tonnes; 4th straight increase and 2-month high
- (JP) BOJ offers to buy ¥400B in 1-3yr JGBs, ¥400B in 3-5yr JGBs, ¥400B in 5-10yr JGBs
***Market Focal Points/FX***
- Asian markets are mixed and trading was thin, with several indices closed for Fall festival and with US jobs data looming later in the week. Nikkei225 is down over 1%, as weekend commentary from PM Abe suggested the govt is not considering compiling an extra budget. Note that Japan will also post its quarterly Tankan data this coming Thursday, with expectations pointing to continued deterioration. China markets are little changed ahead of this week's PMIs. In the mean time, China industrial profits contracted by their largest amount in several years, with the Stats Bureau blaming rising input costs and decline in Yuan. Also of note in China, CCIEE official acknowledged the precarious power consumption and freight volume indicators, but also pointed at industrial restructuring as a key factor in analyzing the economy.
- IMF head Lagarde spoke with French press and effectively flagged a downgrade to global growth, calling the 3.3% 2015 GDP objective set in July as no longer realistic. Lagarde said developing economies' growth is picking up, as emerging markets slow.
- Outside China industrial profits, economic data was limited to a softer Employment Confidence out of New Zealand as surveyed by Westpac, which fell to a 3-year low. RBNZ Gov Wheeler also spoke, noting New Zealand inflation was lower than preferred. NZD/USD was one of the more active USD majors, initially falling over 20pips to $0.6360 on data release before reversing the decline. USD/JPY traded in about a 30pip range below 120.60, AUD/USD was flat and supported by the $0.70 handle, and EUR/USD traded about 15pips on either side of $1.12.
- Escalating Syria standoff saw some notable weekend developments and commentary. France expanded its bombing of ISIS to Syria from Iraq. Even more notable, Russian president Putin, whose expanded Syria involvement has come under scrutiny in recent days was interviewed by CBS 60 Minutes. Putin said Russia was not planning to insert ground troops into Syria at this time, but rather was seeking a "coordinated framework" to fight ISIS. He did however acknowledge that Moscow is looking at ways in which the legitimate Assad govt can be supported.
***Equities***
US equities / ADRs:
- ATML: Cypress Semi reportedly working on a rival offer to acquire company - financial press
- WMB: Acquisition by Energy Transfer may be announced as soon as Monday; Value speculated at $34B - financial press
- SAB.UK: AB Inbev said to bid £70B for SAB Miller; Would mark the biggest takeover of a UK company - UK press
Notable movers by sectors:
- Consumer discretionary: Nine Entertainment Co Holdings NEC.AU -0.6% (stake evaluation by Apollo)
- Industrials: China Merchants Energy Shipping Co 601872.CN +1.4% (long-term agreement with Vale); Suzuki Motor Corp 7269.JP -1.6% (VW stake sales)
- Technology: Hon Hai Precision Industries 2317.TW +0.8%, Sharp Corp 6753.JP +1.4% (Hon Hai reportedly to acquire stake Sharp's LCD unit); Leshi Internet Info & Tech Co 300104.CN +8.0% (launches new smart TVs)
- Energy: Woodside Petroleum WPL.AU +0.9% (speculation unlikely to increase bid for OSH)
- Telecom: Vocus Communications VOC.AU -5.9%, M2 Telecommunications Group MTU.AU +14.0% (Vocus to merge with M2)