>>> US After Hours Summary: TRVN +35% on positive data, MTRX +6%

After Hours Summary: TRVN +35% on positive data, MTRX +6% on earnings 

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: MTRX +6.0%.

Companies trading higher in after hours in reaction to news: TRVN +35% (announced positive results from its Phase 2b study of TRV130 in acute postoperative pain, showing that the novel mu-opioid receptor modulator achieved its primary endpoint), SUNE +4.6% (Point72 Asset Management discloses 5.1% passive stake).

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: ADEP -4.4%.

Fresenius, Safran to Join Euro Stoxx 50 Index



BFW 08/31 20:01 *REPSOL, RWE TO BE DELETED FROM EURO STOXX 50
BFW 08/31 20:01 *FRESENIUS, SAFRAN TO JOIN EURO STOXX 50 INDEX

Fresenius, Safran to Join Euro Stoxx 50 Index
2015-08-31 20:04:59.963 GMT


By Jim Silver
(Bloomberg) -- Repsol, RWE to be deleted from index
effective at opening of markets Sept. 21, Stoxx Ltd. says in e-
mailed statement.


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To contact the reporter on this story:
Jim Silver in New York at +1-212-617-7342 or
jsilver@bloomberg.net
To contact the editors responsible for this story:
Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net
Jeremy R. Cooke

(BN) VMware CEO Says Idea of Buying EMC Isn’t ‘Serious Consideration’



VMware CEO Says Idea of Buying EMC Isn’t ‘Serious Consideration’
2015-08-31 20:39:03.607 GMT


By Dina Bass
(Bloomberg) -- VMware Inc. Chief Executive Officer Pat
Gelsinger said the idea of VMware acquiring parent company EMC
Corp. wouldn’t be a “serious consideration.”
In a speech on Monday at the company’s annual VMworld
conference in San Francisco, Gelsinger also said he hasn’t ever
recommended the idea, called a downstream merger. Technology
news website Re/Code earlier this month reported that the two
companies were considering the idea and that Gelsinger had
suggested it.
EMC is looking at strategic options for boosting its share
price under pressure from activist investor Elliott Management
Corp. A standstill agreement between EMC and Elliott ends in
September, and EMC CEO Joe Tucci is overdue to retire, having
initially said he would do so by February. Elliott has called
for a spinoff of VMware, while EMC and Tucci have opposed that
idea.
Gelsinger today voiced support for EMC’s current
“federation” structure, in which EMC owns the majority of
several interlocking companies such as VMware and Pivotal, which
sells cloud software.
VMware shares rose 2.1 percent to $79.15 at the close in
New York, while EMC fell less than 1 percent to $24.87.

For Related News and Information:
EMC Falls Short of Analysts’ Estimates on Weak Storage Demand
EMC Jumps After Report of Deal Involving Buyout by VMware
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To contact the reporter on this story:
Dina Bass in Seattle at +1-206-262-4143 or
dbass2@bloomberg.net
To contact the editors responsible for this story:
Jillian Ward at +1-415-617-7261 or
jward56@bloomberg.net
Andrew Pollack

>>> US Close Dow-0.69% S&P-0.84% Nasdaq-1.07% Russell-0.30%

Closing Summary: Oil Spikes, Stocks Sputter

There was oil today and then there was everything else.  That doesn't mean, though, that "everything else" wasn't interesting.  It's just that the movement in oil prices was so spectacular that it garnered top billing throughout the session.

To the latter point, crude prices were down 3.6% in early trading to $43.60 per barrel.  They would settle the day up 8.8% at $49.20 per barrel, representing a huge 13% swing from low to settlement price.

There were several factors contributing to the sharp reversal:

  • The Energy Information Administration released a report showing monthly production in the U.S. in June was estimated to be 9.3 million barrels per day or roughly 100,000 barrels per day less than May and 300,000 barrels per day less than April
  • OPEC published a bulletin in which it said it stands ready to talk to other producers about the low oil prices; and
  • Big short-covering activity on the last day of the month (with Monday's move, oil prices have surged 27% over the last three sessions)

The reversal in oil prices triggered a reversal in the S&P 500 energy sector, which was down 2.6% shortly after the start of trading.  It would end the day up 1.1%, which left it as the best-performing sector in the S&P 500, as well as the only sector to finish the day in positive territory.

By and large, the stock market was stymied by selling efforts on Monday that were rooted in the following factors:

  • An awareness that Fed Vice Chairman Fischer suggested in a speech over the weekend that a rate hike at the September Federal Open Market Committee meeting is still a possibility
    • Mr. Fischer indicated his belief that inflation should move higher as the effects of falling oil prices and the stronger dollar dissipate  
  • A sense the market was due for a pullback after rallying 6.5% from the low it hit last Monday
  • Last Friday's low in the S&P 500 (1975.19) being taken out in early action and an inability to take out last Friday's closing level (1988.87) on a subsequent rebound try; and
  • A general lack of convincing sector leadership

The Chicago Purchasing Managers Index (PMI) for August was the only economic release on today's docket.  It checked in weaker than expected at 54.4 (consensus 54.7), which was down slightly from 54.7 in July.  It didn't carry much weight in moving the market since participants were keyed in more on Tuesday's release of the national ISM Index and a battery of PMI readings out of China, Japan, and the eurozone.

Notably, the Treasury market coughed up early gains even as the stock market struggled to gain upside traction.  Its turnaround was precipitated by the spike in oil prices, which played into Mr. Fischer's view that inflation should move higher.  The yield on the 10-yr note, which dipped to 2.14%, eventually pushed back up to 2.21%; meanwhile, the yield on the 2-yr Treasury note, which stood at 0.72%, bumped up to 0.74%.

The U.S. Dollar Index, however, was a bit weaker, falling 0.3% to 95.87 as both the euro and the yen gained ground against the greenback.

The majority of Dow components ended the day lower, led by Boeing (BA 130.68, -2.56, -1.9%), which was the biggest price loser.  Conversely, Goldman Sachs (GS 188.60, +0.85, +0.6%) was the biggest price gainer and helped the Dow cut an early 199-point loss.  

Boeing's weakness weighed on the industrials sector (-0.9%), but it was the health care sector (-1.9%) that was the weakest area, pressured by losses in the medical equipment and major pharmaceutical stocks.  Separately, the biotech stocks also succumbed to selling efforts, evidenced by the 3.3% decline in the iShares Nasdaq Biotechnology ETF (IBB 341.80, -11.48).

Volume was again relatively heavy with 1.08 billion shares changing hands at the NYSE.

For the month of August, the Dow, Nasdaq, S&P 500, and Russell 2000 declined 6.6%, 6.9%, 6.3%, and 6.3%, respectively.

>>> AAPL - Signs partnership with Cisco to further sale of Apple devices to busi

Signs partnership with Cisco to further sale of Apple devices to businesses 
- Partnership to create a fast lane for iOS business users by optimizing Cisco networks for iOS devices and apps, integrating iPhone with Cisco enterprise environments and providing unique collaboration on iPhone and iPad
- To address the ever-increasing demands on corporate infrastructure, Cisco networks and iOS devices will be optimized so that they work together more efficiently and reliably with the goal of providing users with even greater performance.
- With Apple's support, Cisco will deliver experiences specially optimized for iOS across mobile, cloud, and premises-based collaboration tools such as Cisco Spark, Cisco Telepresence and Cisco WebEx in order to deliver seamless team collaboration and reinvent the meeting experience.

FT : Israeli spy technology exports to Colombia raise concerns

Two Israeli companies have sold mass surveillance technology to Colombia, according to a report that will raise questions over the export and proliferation of snooping systems to countries with patchy human rights records.
The report by Privacy International, a London-based campaigning group, names the Israeli arm of Verint Systems, the Nasdaq-listed security and surveillance company, as having provided technology to

Privacy International also says that Nice Systems, based in Ra’anana in Israel, is helping to build a new system that will allow police to intercept private communications.
The report will spark fresh scrutiny of sales to countries accused of human rights abuses of advanced equipment able to eavesdrop on private citizens’ telephone, email and other communications.
Export controls and other regulations in the countries that produce such equipment, including Israel, have not caught up with similar checks governing the sale of conventional weapons, say campaigners.
“I think clearly there is not enough oversight or human rights criteria put into the assessment process in Israel,” said Edin Omanovic, a researcher with Privacy International. “It’s just another example of the technology and surveillance practices far outstripping the legal framework and any safeguards.”
Israeli companies last year sold more than $6bn worth of cyber security products, surpassing the country’s exports of conventional military hardware for the first time.
While many were commercial products such as anti-hacking software for banks, Israeli companies are also among the leading suppliers of surveillance technology that can be used by police, security forces and other state actors.
Israel’s large military intelligence units have provided the burgeoning sector with large numbers of “graduates” with espionage skills.
In Colombia, evidence of illegal interception of communications pervades accounts of extrajudicial disappearances and killings, according to Privacy International.
Colombia’s long-running conflict with leftwing rebels has killed more than 200,000 people since 1958, most of them civilians, and Amnesty International has accused both sides of violations of human rights and international law.

During the May 2014 election campaign, Colombia saw a scandal involving the wiretapping of peace negotiations between the government and Farc rebels by elements in the security forces and intelligence establishment.
“This investigation finds that the [Colombian] national police, intelligence and security services were and are capable of carrying out interception on a massive scale outside of the existing Colombian legal framework,” the Privacy International report said.
According to the group, Verint supplied Colombia with technology for its Puma surveillance system and an “integrated recording system” used by its police force. Puma intercepts and stores communications transmitted on the backbone of Colombia’s telecoms network.
Nice Systems, in a consortium with the Colombian company Eagle Commercial, supplied Colombian police with the technology to build another system called Super-Puma, allowing police to intercept communications transmitted on “targeted devices or lines”, said the report.
According to Privacy International, Colombia’s police have been building a “shadow interception architecture without clear lawful authority or public scrutiny”.

Elbit Systems, the Israeli defence group, bought Nice’s cyber and intelligence division in May for $158m.
Elbit declined to comment on the report, and Verint did not respond to requests for comment.
Nice said on Sunday that it had sold its intelligence division, and was “no longer in this area of business in Colombia or anywhere else”.
“In line with company policy, Nice is not in a position to comment on its relationships with actual or possible customers, current or past,” the company said. “In the past, such solutions were sold in accordance with applicable laws and appropriate government oversight.”
Privacy International last year named Verint and Nice among the companies supplying spying technology to repressive Central Asian governments, giving them mass access to citizens’ phone calls and internet activity.
At the time, Verint said it only did business with countries with which Israel had commercial ties. Nice did not comment.
According to companies active in the cyber field, Israel’s defence ministry has a strict approval process in place to vet exports of the technology, including a list of countries to which sales are allowed.
However, the ministry declined to comment in response to a request for details of the policy and a list of the approved countries, referring the questions to the National Cyber Bureau in prime minister Benjamin Netanyahu’s office.
The bureau referred the question back to the defence department, which said it could not “comment [on] or publish details regarding defence and cyber exports”.

FT : Infineon could be a takeover target, says chief executive


Infineon Technologies, the German chipmaker, could attract takeover interest due to its foothold in growth sectors, including semiconductors for automated driving and electric vehicles, its chief executive believes.
But following a wave of multibillion dollar takeovers in the chip industry, Reinhard Ploss told the Financial Times that he considers the company to be “more the consolidator” — as opposed to the one being bought.

“There is one risk: we are busy in highly attractive markets. That is a strength but maybe we should be aware that people might be interested in Infineon because of that market position,” said Mr Ploss.
While technology companies including Apple and Google, as well as automobile makers, push to develop self-driving cars, Infineon has already become an important supplier of components for vehicles being sold now that have computer controlled features, such as automatic braking. It is also supplying products for the small but expanding electric car market.
The company has been partly expanding its competences through deal making. Last year Infineon agreed to pay $3bn to acquire California-based International Rectifier, to increase its US footprint and its range of compound semiconductors that enable mobile devices to use less bulky battery chargers, among other things.
“Because of the step we took last year we are much better off now than a year ago,” said Mr Ploss, an engineer by background, adding that for the time being Infineon was interested only in smaller acquisitions.
The International Rectifier deal was the harbinger of massive dealmaking in the semiconductor sector, including Intel’s $16.7bn takeover of Altera, Avago Technologies’ $37bn purchase of Broadcom and Netherlands-based NXP’s $11.8bn agreement to acquire Freescale.
Consolidation has been sparked by a maturing mobile and PC chip industry, rising development costs and the desire to profit from the next wave of innovation in the internet of things and energy — a future in which smart electricity grids connect decentralised renewable energy sources, consumer devices communicate with each other, and cars refuel at electric charger stations and then drive away autonomously.

Infineon made large losses during the 2008-09 financial crisis, but following a restructuring and divestments — including the sale of its wireless unit to Intel in 2010 — its performance has improved thanks to a focus on energy efficiency, mobility and security applications.
Having fallen to a low of €0.35 in 2009, a fraction of the €35 price when former owner Siemens floated the business in 2000, Infineon’s stock now trades at more than €9.50, giving it a €10.7bn market capitalisation. However, in tandem with other semiconductor stocks, Infineon has fallen more than 20 per cent since a peak in May due to worries about China’s economic slowdown.
Infineon’s revenues jumped 12 per cent to €4.3bn last year, putting it among Europe’s top three chipmakers, alongside STMicroelectronics and NXP.
Headquartered near Munich, the company aims to increase sales by 8 per cent a year on average over the cycle, and achieve a 15 per cent operating profit margin. Last year the margin was 14.4 per cent.
Commerzbank analysts said in April that due in part to the NXP-Freescale deal “competition is heating up . . . making it harder to gain market share as Infineon has done over recent years”. Meanwhile, Morgan Stanley analysts are concerned that a rise in US interest rates could slow auto-related growth.
Autos account for about 40 per cent of Infineon’s revenues — making it the global number two in that market behind Renesas, the Japanese group.
Making cars safer, more automated and increasingly environmentally friendly almost invariably means higher semiconductor and sensor content.
Infineon’s power semiconductors help improve energy efficiency in the BMW i3 and Tesla Model-S electric vehicles, and its micro-controller assists in managing the central “brain” of Audi’s driverless test vehicle.
Infineon also makes radar-based distance warning sensors, which cause the car to brake when the vehicle in front slows. It took six years for the company to sell 10m sensors, but Infineon expects to sell the next 10m in one year, in part because of their use in the Volkswagen Golf, Europe’s top-selling car.
Mr Ploss said that Infineon was well-placed to supply components for advanced driver assistance systems such as automatic braking — with a level of reliability found in aircraft but at a price acceptable to the car industry. “Not everybody can supply that,” he added.
Infineon has benefited from strong demand for its products by German premium manufacturers such as BMW, Audi and Mercedes-Benz, which offer driver-assistance features.
However, by driving down costs, Infineon aims to enable mid-market manufacturers to offer similar functionality. This trend is expected to help the automotive semiconductor market to grow at almost 6 per cent a year until 2019, according to IHS, the research firm.
Infineon also plans to use expertise gained from its chip card and security division to help protect vehicles from hacker attacks.
“Today’s car is not designed in a manner to be resistant against hacker attacks — but in order to hack today’s car you have in general to physically plug something in,” said Mr Ploss. “If you add internet to the car and do not do it in a diligent manner, then you have a problem.”

(BFW) Safran Rises; Repsol, RWE Drop Ahead of Euro Stoxx 50 Reshuffle


Safran Rises; Repsol, RWE Drop Ahead of Euro Stoxx 50 Reshuffle
2015-08-31 13:58:10.508 GMT


By Blaise Robinson
(Bloomberg) -- Safran rises as much as 3.9% while Repsol
drops as much as 4.0% ahead of expected reshuffle of Euro Stoxx
50 index later today.

* Vol. on Safran shares is 920k, or 87% of 3-month daily avg
at 3:55pm CET; vol on Repsol is 5.7m, or 50% of 3-month avg
* Other expected change in SX5E: RWE out, Fresenius in
* RWE falls as much as 4.5%, vol 2.1m, or 51% of 3-month
avg
* Fresenius little changed, vol ~570k, or 45% of 3-month
avg
* NOTE: SocGen said on Aug. 25 Safran Could Join Euro Stoxx
50, Replacing Repsol
* NOTE: Stoxx blue-chip index components review on Aug. 31,
effective Sept. 21


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To contact the reporter on this story:
Blaise Robinson in Paris at +33-1-5365-5008 or
brobinson58@bloomberg.net
To contact the editor responsible for this story:
Gaurav Panchal at +44-20-3525-0511 or
gpanchal2@bloomberg.net