>>> Pharma Story I missed yesterday that pushed Hilary Clinton to Tweet.

Hilary Clinton Tweet : " she is ready to unveil a plan that would target price gouging among specialty drug makers"
--> Hillary Clinton Drug Plan Would Cap Consumer Costs, Mandate R&D Spending


* Pharmaceutical CEO says he is Glad he Raised Price on $13 AIDS medicine to $750: Will Do It Again

* Drug Co. Started by Hedge Fund Manager Buys Rights to AIDS Drug: Increases Price 5,000%

* Turing Pharmaceuticals CEO Pressed by Lawmakers on Drug Price

* CEO Who Raised Price of Old Pill More Than $700 Calls Journalist a ‘moron’ for Asking Why

(BarCap) Global Eq. Strategy : Earnings hold the key

Earnings hold the key

* The key to the outlook for global equities is earnings, with global valuations in line with
historical averages, a supportive monetary policy backdrop, and very bearish sentiment,
a major hit to EPS is the main risk for the market.

* There are two key issues in the EPS outlook – global GDP and the effect of lower oil
prices. With global GDP expected to remain above the key 2.6% threshold through
2016, global EPS should grow: we forecast 8.4% in 2016.

* The other uncertainty relates to oil. Analysts have slashed earnings estimates for oil
producers by $148bn but only raised forecasts for “oil consumers” by $9bn. This
asymmetry leaves scope for an oil “dividend” whatever happens to oil prices.

* History suggests that, if our earnings projections are right, today’s extremely negative
sentiment towards equities should unwind, with global equities able to recover the bulk
of their recent losses over time.

* Within the market we remain underweight in US equities, with our biggest
recommended overweight position in Europe ex-UK. We also overweight both Japanese
and EM equities.

>>> What to look at today - 22nd of September 2014

Dow+0.77% S&P+0.44% Nasdaq+0.04% Russell-0.23%
US market closed higher. The biotechnology ETF struggled from the get-go, but the group accelerated its decline after presidential candidate Hillary Clinton sent out a tweet saying she is ready to unveil a plan that would target price gouging among specialty drug makers. Today's selling dropped IBB below its 200-day moving average (347.36) to levels last seen at the start of September. financials (+1.1%) and technology (+1.0%) keeping the S&P 500 ahead of the Nasdaq Composite. It is worth pointing out that solid gains in large cap tech names like Apple (AAPL 115.21, +1.76), Google (GOOGL 666.98, +6.06), and Microsoft (MSFT 44.11, +0.63) masked the relative weakness in chipmaker names, Atmel (ATML 8.19, +0.92) bucked the trend, surging 12.7% after agreeing to be acquired by Dialog Semiconductor (DLGNF 41.25, -8.00) for $4.60 billion. Volume were light at 800mil shares. US After Hours VGGL +12.1%, THO -4.3%, RHT -0.2% following earnings/guidance...In Asia While Monday's losses were not entirely in the rearview most of Asia managed to recoup some gains as the US Fed's mixed signals (4th Fed member talked about a possible hike in 2015) create further confusion. Fed Chair Yellen's speech later this week should be highly watched as the markets look for a clear signal on policy. Though Fed fund futures see a hike in Oct 20th meeting at less than 25%.

Nikkei closed Hang Seng+1.11% Shanghai+0.98%

Eur$ 1.1197 CNY 6.3736 JPY 120.50 GBP 1.5510 EURCHF 1.0879 RUB$ 66.19 WTI $46.09 (-1.26%) GOLDS 1,133

S&P -0.13% EuroStoxx Dax SMI


Macro :
- Fed’s Lockhart Favors Interest-Rate Liftoff Later This Year
- Praet Says If ECB Objective at Risk, Will Do What Is Necessary


Keep an eye on :
- AF FP : Air France Wants to Cut Pilot Jobs 8% by 2017: AFP
- ALO FP : Alstom Seen as Preferred Bidder for Amtrak Project: Schumer
- ATE FP : Alten 1H Net Income EU45.3m vs EU33.7m
- AREVA FP : Mitsubishi Heavy May Invest in Areva Reactor Unit, Nikkei Says
- BBVA SM : BBVA Finanzia may attract bid from Apollo - Il Sole 24 Ore
- COX FP : Bausch + Lomb, Nicox Say FDA Accepts NDA Application for Vesneo
- EDF FP : EDF Seeks Major Presence in 3-5 Non-European Countries by 2030
- ING FP : Ingenico Says Talks on Worldpay Acquisition Failed
- RSA LN : RSA CEO Hester Says Company Not in Talks With Any Other Parties
- SDRL NO : Seadrill Gets Notice of Contract Cancellation for West Mira
- SN/ LN : traded higher on takeover talk, JNJ mentionned http://on.ft.com/1QVFR7u
- GLE FP : Societe Generale Plans to Cut 420 Jobs in France: Reuters
- SEV FP : Suez could pursue more deals in Australia following SembSita transaction - Australian Financial Review
- TIT IM : Tel. Italia Media: Shareholder Rep. Seeks Suspension of Merger
- FP FP : Total Needs to Raise Disposal Target, Exane BNP Paribas Says
- VK FP : Vallourec extends maturity of EUR 400m debt facilities via RCF
- VATT SS : Vattenfall Seeks Bidders for German Lignite Assets, Hydro Plants
- VOW3 GY : VW’s Winterkorn to Face Supervisory Board Sept. 23: Handelsblatt

>>> Europe : Brokers Upgrades & DOwngrades - 22nd of September 2015

>>> Up
*BAM RAISED TO BUY VS HOLD AT ING; PT UP TO EU6 VS EU4
*INDIVIOR RAISED TO BUY VS NEUTRAL AT CITI
*MONDADORI RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA
*TOTAL RAISED TO BUY VS HOLD AT SOCGEN

>>> Down
*ABB CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*ANGLO AMERICAN CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE (Note Attached)
*ANTOFAGASTA CUT TO UNDERPERFORM AT CREDIT SUISSE
*BT GROUP CUT TO NEUTRAL VS BUY AT NOMURA
*HANDELSBANKEN CUT TO UNDERWEIGHT VS EQUALWEIGHT: MORGAN STANLEY
*IMI CUT TO HOLD AT JEFFERIES
*KAZ MINERALS CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
*ONESAVINGS BANK CUT TO SELL VS HOLD AT INVESTEC
*OXFORD INSTRUMENTS CUT TO UNDERPERFORM AT JEFFERIES
*ROTORK CUT TO UNDERPERFORM AT JEFFERIES
*SOCIETE GENERALE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*VEDANTA CUT TO UNDERPERFORM AT CREDIT SUISSE
*VOLKSWAGEN CUT TO HOLD VS BUY AT DZ BANK

>>> PT Change


>>> Initiation
*CINEWORLD GROUP RATED NEW NEUTRAL AT NOMURA

>>> Call
>> Stock
*HSBC ADDED TO GOLDMAN SACHS CONVICTION BUY LIST
*HENKEL, RHOEN-KLINIKUM REMOVED FROM BANKHAUS LAMPE ALPHA LIST
*BMW, FRESENIUS MEDICAL CARE ADDED TO BANKHAUS LAMPE ALPHA LIST

>>> Deezer preparing IPO

Deezer preparing IPO 

Deezer, the French global digital music streaming service, is understood to have decided to list on the Euronext Paris stock exchange, assisted by BNP Paribas, French daily Le Figaro reported. The unsourced report said that Deezer, with 6m paying subscribers, could be valued at around EUR 1bn.

This development was also reported in daily Les Echos, which noted that Deezer could list by the end of the year and was worth EUR 300m in 2012. The company reported sales of EUR 142m in 2014 with an operating loss of EUR 22m, and aiming to generate revenues of EUR 750m by 2018.

According to the report, Deezer is 25% owned by Access Industries, 20% by Universal Music, Warner, and Sony Music jointly, 10% by IDInvest, 10% by Orange, and 10% by its founders.

Le Figaro, Les Echos

>>> Asian Update

Asian Mid-session Update: China date provides a glimmer of hope ahead of flash PMI later in the week


***Economic Data***
- (AU) AUSTRALIA Q2 HOUSE PRICE INDEX Q/Q: 4.7% V 2.3%E; Y/Y: 9.8% V 8.0%E
- (CN) CHINA AUG CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: 1.0% V 0.9% PRIOR
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 114.5 v 105.3 prior
- (TW) Taiwan Aug Unemployment rate Y/Y: 3.7% v 3.8%e

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 closed, S&P/ASX +0.6%, Kospi +0.3%, Shanghai Composite +1.0%, Hang Seng +0.7%, Dec S&P500 -0.2% at 1,959

***Commodities/Fixed Income***
- Dec gold flat at $1,133/oz, Nov crude oil -0.9% at $46.53/brl, Dec copper -0.2% at $2.38/lb
- (CN) PBoC to inject CNY50B in 7-day reverse repos (25th consecutive injection)
- USD/KRW: Onshore opens at KRW1,178 v KRW1,174 prior close
- USD/CNY: PBoC sets yuan mid point at 6.3721 v 6.3676 prior setting
- (ID) Indonesia to allow rice imports this year; specific volume has not been decided yet - press

***Market Focal Points/FX***
While Monday's losses were not entirely in the rearview most of Asia managed to recoup some gains as the US Fed's mixed signals (4th Fed member talked about a possible hike in 2015) create further confusion. Fed Chair Yellen's speech later this week should be highly watched as the markets look for a clear signal on policy. Though Fed fund futures see a hike in Oct 20th meeting at less than 25%.

Australia's ASX held some marginal increase led by energy names riding the kite supplied by oil prices rebounding during US hours. Korea's Kospi rose 0.3% and Hong Kong 0.2% at the open, markets continued to rise further as China Conference Board Leading Economic Index came in higher than prior 0.9% to 1%. This supplied some cautious optimism despite the blanket of Fed uncertainty. China and Hong Kong expected to continue their slightly erratic movements ahead of Wednesday release of Sept flash PMI. China bank names were up on the news that London and Shanghai are exploring a way to connect markets.

Currencies were subdued in the session EUR/USD remaining little changed at the $1.12 level after declines of 2% in the prior days. Addition decline expected if EU follows through on action to address inflation concerns. Japan remained closed another day but the Yen saw some gains to 120.3250.

A$ seemed unconcerned (ranged from 0.7150-0.7121) with Australia's rising housing prices, which have been a concern to policy makers, who are fretting about a correction's impact on consumer sentiment and confidence. Many analysts expect that the housing sector has peaked and tighter mortgage rules and housing restraints have done their job.

Indonesia Central Bank Gov Martowardojo noted that the country will not issue any more debt in 2015 despite growing deficit and has asked for a $4.2B loan from World Bank and ADB to cover 2015 deficit.

IMAX China Holding announced a $280M IPO in Hong Kong, to trade under 1970.HK, 62M shares expected to price in range of HK$29.80-34.50/shr. Asian Development Bank (ADB) lowers 2015 developing Asia GDP to 5.8% from 6.1%, lowers 2016 to 6.0% from 6.2%

***Equities***
US equities / ADRs:
- RHT: Reports Q2 $0.47 v $0.44e, R$504M v $495Me; +0.9*% afterhours
- MOS: Cuts production of Potash at Colonsay mine; sees volumes at low end of prior guidance; cites current crop nutrient market conditions; -2.6% afterhours
- THO: Reports Q4 $1.31 v $1.31e, R$1.06B v $1.16Be; -4.6% afterhours

Notable movers by sector:
- Consumer discretionary: 361 Degrees International 1361.HK +2.8% (summer trade fair result);Li Ning Co 2331.HK -0.6% (chairman comment); Lotte Shopping 023530.KR +2.3% (Q1 result, plans to list hotel unit)
- Consumer staples: Yashili International Holdings 1230.HK +2.0% (to acquire asset from Mengniu)
- Financials: Ping An Insurance 2318.HK +1.5% (to boost lending platform IPO): Greenland Hong Kong 337.HK +1.3% (to invest in Japan); CITIC Securities 600030.CN +3.9%, Haitong Securities 600837.CN +4.6% (CSRC to remove assistant chairman)
- Industrials: Hyundai Motor 005380.KR +2.8%, Kia Motors 000270.KR +3.7% (South Korea to probe VW and Audi diesel cars)
- Materials: New Hope Corporation NHC.AU +6.5% (FY15 result); Northern Star Resources NST.AU +1.1% (guidance); South32 S32.AU +1.0% (update)
- Healthcare: Pharmaxis PXS.AU +9.8% (drug result)
- Telecom: TPG Telecom TPM.AU -2.2% (FY15 result); China Telecom 728.HK +1.3% (Aug operation data)
- Utilities: DUET Group DUE.AU +0.7% (update on acquisition)

>>$ US After Hours Summary: VGGL +12.1%, THO -4.3%, RHT -0.2% fo

After Hours Summary: VGGL +12.1%, THO -4.3%, RHT -0.2% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: VGGL +12.1%

Companies trading higher in after hours in reaction to news: TRXC +6.7% (acquired the surgical robotics division of SOFAR S.p.A., in a cash and stock transaction with total consideration of $99.8 million), CORE +3.9% (to replace TTC in the S&P SmallCap 600), NRG +1.5% (announced authorization to repurchase $251 mln of common stock), JACK +1.3% (announced new $200 mln share repurchase program), TTC +1.3% (to replace SPX in the S&P MidCap 400), GCO +0.8% (announced its Board has authorized the repurchase of $100 mln of common stock)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: THO -4.3%, RHT -0.2%

Companies trading lower in after hours in reaction to news: MRD -4.3% (announced an underwritten public offering of 10.25 mln shares of its common stock), CBK -3.6% (to be removed from the S&P SmallCap 600), NMFC -2.8% (announced an underwritten offering of 5 mln shares of its common stock), SJM -1.8% (announced 8.28 mln share offering of common stock by Blue Holdings), ITCI -1.7% (assumed sponsorship of the Investigational New Drug applications for studies related to ITI-214 and ITI-214), SCMP -1.1% (disclosed plans to hold meetings with potential lenders in connection with the financing of its proposed acquisition of R-Tech Ueno beginning on September 22, 2015)

>>> US Close Dow+0.77% S&P+0.44% Nasdaq+0.04% Russell-0.23%

Closing Market Summary: Stocks Climb Despite Weakness in Biotechnology

The stock market began the trading week on a higher note despite seeing some intraday volatility. The S&P 500 gained 0.5% while the Nasdaq Composite underperformed throughout the day, but was able to settle just above its flat line.

Equity indices rallied out of the gate with the advance continuing through the first hour of action. All ten sectors took part in the opening move higher, but health care was quick to surrender its gain. The countercyclical group ended lower by 1.4% while biotechnology struggled mightily, sending the iShares Nasdaq Biotechnology ETF (IBB 340.78, -15.98) lower by 4.5%.

The biotechnology ETF struggled from the get-go, but the group accelerated its decline after presidential candidate Hillary Clinton sent out a tweet saying she is ready to unveil a plan that would target price gouging among specialty drug makers. Today's selling dropped IBB below its 200-day moving average (347.36) to levels last seen at the start of September.

Outside of health care, the remaining sectors posted gains with relative strength in heavily-weighted financials (+1.1%) and technology (+1.0%) keeping the S&P 500 ahead of the Nasdaq Composite. It is worth pointing out that solid gains in large cap tech names like Apple (AAPL 115.21, +1.76), Google (GOOGL 666.98, +6.06), and Microsoft (MSFT 44.11, +0.63) masked the relative weakness in chipmaker names. The PHLX Semiconductor Index shed 0.1% while Atmel (ATML 8.19, +0.92) bucked the trend, surging 12.7% after agreeing to be acquired by Dialog Semiconductor (DLGNF 41.25, -8.00) for $4.60 billion.

Meanwhile, the remaining cyclical sectors also posted gains. The energy space rose 0.6% as crude oil surged 4.5% to $46.68/bbl while the consumer discretionary sector (+0.7%) was underpinned by retailers. The SPDR S&P Retail ETF (XRT 46.40, +0.30) gained 0.7% while homebuilders lagged after a below-consensus August Existing Home Sales report (5.31 million; Briefing.com consensus 5.50 million) overshadowed better than expected earnings from Lennar (LEN 51.58, -0.17).

Strikingly, Treasuries retreated throughout the day, continuing their slide even as stocks retreated from their highs. As a result, the 10-yr note settled on its low with the benchmark yield rising six basis points to 2.21%.

Today's participation was a bit light with fewer than 800 million shares changing hands at the NYSE floor.

Economic data reported today was limited to the Existing Home Sales report for August, which showed a 4.8% decline to an annualized rate of 5.31 million units while the consensus expected a reading of 5.50 million.

The overall story in the housing market remains the same. Tight supplies and relatively high prices have cut into both demand and affordability conditions. Unless price growth softens or an influx of inventories gives buyers more options, sales growth will suffer.

Still, underlying demand trends aren't terrible. Even though sales in August were the lowest since April, the drop came immediately after a month where sales rose to their highest point since February 2007. That suggests the move was likely normal volatility rather than a big shift in trends.

Tomorrow's economic data will be limited to the 10:00 ET release of the FHFA Housing Price Index for July.

  • Nasdaq Composite +2.0% YTD
  • Russell 2000 -3.4% YTD
  • S&P 500 -4.5% YTD
  • Dow Jones Industrial Average -7.4% YTD

>>> Suez could pursue more deals in Australia following SembSita transaction

Suez could pursue more deals in Australia following SembSita transaction

Suez, the France-based waste and water business, could look for additional deals in Australia, the Australian Financial Review reported. The paper noted that Suez yesterday bought Singapore’s Sembcorp out of the SembSita Pacific joint venture for AUD 485m (USD 349m). Sembcorp held 40% of the Australian waste management entity.

The news report cited Suez managing director Jean-Louis Chaussade as saying that following the deal Suez would still have the financial capacity to pursue new opportunities.

The item noted that Chaussade said in March that Suez is targeting acquisitions around the word and considered Australia an attractive region. At the time Chaussade noted that the business had between EUR 600m and EUR 700m in additional financial capacity.

The paper noted that the SembSita deal is subject to the approval of the Foreign Investment Review Board (FIRB).

Australian Financial Review