(BFW) Porsche 2008 Supervisory Board Members Cleared in Probe

CORRECT: Porsche 2008 Supervisory Board Members Cleared in Probe
2015-08-17 12:01:53.834 GMT


By Karin Matussek
(Bloomberg) -- (Corrects to say former spokesman was
charged in second bullet point.) Stuttgart prosecutors say in e-
mailed statement they cleared all members of co.’s 2008
supervisory board in market-manipulation probe.

* Statement also confirms that former chief spokesman is
charged
* NOTE: Aug 13: Porsche Board Members Said to Be Cleared in VW
Options Probe


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pchapman10@bloomberg.net
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>>> US Gapping Down

Gapping down
In reaction to disappointing earnings/guidance: NTIP -8.8%, EL -3%, CEA -1.4%


Other news: AXPW -5.6% (discloses entry into a securities purchase agreement to sell $600k principal amount of Senior Convertible Notes and warrants to purchase 510k shares of common stock; also files to delay form 10-Q), PBMD -3.5% (modest pull back after Friday's advance), KKR -3% (KKR's Samson Resources confirms restructuring support agreement with key creditors), AKRX -1.7% (receives a notice from Nasdaq for non-compliance, with regard to failing to file its Form 10-Q for the June-ending quarter), SNN -1.1% (still checking)

Analyst comments: CSCO -1.4% (downgraded to Equal-Weight from Overweight at Morgan Stanley), CYT -0.5% (downgraded to Neutral from Buy at Goldman).

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: AU +8.6%

M&A news: MARA +6.2% (Marathon Patent Group and Uniloc Luxembourg SA to combine in an all-stock merger of equals, new company will be called Marathon Group SA )

Select Israel related names showing strength: CEL +10.3%, PTNR +7%, ALLT +2%, TSEM +1.5%, CAMT +1.4%

Select metals/mining stocks trading higher: DRD +7.1%, GFI +3.8%, HMY +1.9%, GG +1.8%, ABX +1.2%, GDX +0.8%

Other news: AVEO +118.8% (AVEO Oncology and Novartis (NVS) announce an exclusive, worldwide license agreement to develop and commercialize Aveo's GDF15 and AV-380 ), OHRP +17% (disclosure of purchase of 12.1k shares in 13F filing by Soros Fund), BLRX +4.6% (initiation of Phase 2b Trial for novel AML consolidation treatment), OMER +4.2% (announces plan to file a patent infringement lawsuit against Par Pharmaceutical), CRNT +3.6% (cont volatility in pre-mkt), MNKD +2.7% (cont volatility in pre-mkt), MBLY +2.3% (Jana Partners increases position in co according to 13F filing), PSTI +1.8% (receives patent for production methods and use of placental cell therapy), SUNE +1.7% (Greenlight Capital increased pos size according to 13F), CHMA +1.6% (FDA has accepted for filing the Company's New Drug Application for the marketing and sale of octreotide capsules)

Analyst comments: TSLA +5.3% (target raised to $465 from $280 at Morgan Stanley), JCP +2.6% (initiated with a Buy at B. Riley & Co), ZUMZ +2.2% (upgraded to Positive from Neutral at Susquehanna), BXLT +1.5% (initiated with an Outperform at William Blair), OAS +1.4% (upgraded to Outperform at BMO Capital), JPM +0.7% (upgraded to Outperform from Mkt Perform at Keefe Bruyette
)

(NY Post) Amazon’s Jeff Bezos drops $250M for British actor


Amazon boss Jeff Bezos admitted he has shelled out big bucks to hire the brawling British TV star Jeremy Clarkson to star in a new reality franchise.
The Seattle billionaire was cagey about precise figures when asked in an interview, saying only that Clarkson — who was fired as host of the UK car show “Top Gear” after assaulting a producer — was “very, very, very expensive.”
Some media reports have estimated the pricetag for Clarkson coming to Amazon Prime’s streaming video service — whose hits have included Golden Globe winner “Transparent” — may have come as high as $250 million for a 36-episode, three-year deal.
“It can’t just be one show, it has to be a number of things,” Bezos told the UK’s Sunday Telegraph. “We have a lot of things in the pipeline, which I think viewers in the UK and around the world are going to love. And I think Clarkson’s new show is going to be one of those.”
Amazon’s as-yet-unnamed show will also feature co-hosts James May and Richard Hammond along with producer Andy Wilman — and all of them are likely to get handsome payouts, Bezos hinted.
“They’re worth a lot and they know it,” he said.
Top Gear was a cash cow for the BBC, distributed in more than 100 countries before Clarkson’s violent outburst got it canceled.
The high-stakes gambit is the latest for Bezos, who is looking to establish Amazon as a beloved entertainment brand, even as it faces criticism about its hard-boiled business tactics.

(BFW) Airbus Plans Long-Range A350 to Fly Singapore-NYC Direct by 2018

Airbus Plans Long-Range A350 to Fly Singapore-NYC Direct by 2018
2015-08-17 11:34:39.953 GMT


By Andrea Rothman and Kyunghee Park
(Bloomberg) -- Airbus’s new variant of A350-900 wide-body
would allow Singapore Airlines to restore nonstop U.S. flights
to New York.

* Airbus working on changes to cabin layout that would reduce
weight, allowing Singapore Airlines to reach New York
economically by 2018, said Airbus exec. VP for strategy and
marketing Kiran Rao
* See story

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(MS) Cross Asset Dispatches - Are you just trading oil ?

Cross-Asset Dispatches : Are You Just Trading Oil?

Asset correlations with oil have risen to some of the highest levels in the last 25 years. They don’t tend to stay that way for long.

Falling oil and a familiar pattern: Falling oil prices widening credit spreads, declining yields, flatter curves, lower inflation breakevens and struggling equity markets are an all-too-familiar pattern. Similar to January (and even before the RMB headlines), these movements are driving fears around growth and a cycle turn.

These linkages are unusual: The relationship between many asset classes is far stronger than normal, in many cases some of the highest correlations in 25 years. This is especially notable given that the drivers of oil’s weakness are unusual, a function of supply more than demand.

What’s ahead for oil? We get the latest thoughts from our commodity team. Near-term challenges to oil prices remain, but the team’s view that current prices do not represent a ‘new equilibrium’ has important implications.

Implications: We think that US HY credit (even ex-energy) risk premiums are high enough to make it attractive despite short-term oil headwinds. Energy equity has the asymmetry of upside to further oil price moves as companies adapt cost structures. For patient investors, long-dated breakeven inflation should be less sensitive to short-term oil weakness.

(GS) Adding: Maersk, Ocado, Prudential, Tullow and Wienerberger

Adding: Maersk, Ocado, Prudential, Tullow and Wienerberger

* Market turbulence presents opportunities
We add five names to the Directors of Research Focus List (DoR FL), all of
which have underperformed the broader market (SXXP) over the past three
months. In each case, we believe recent weakness creates an attractive entry
point into a structurally well positioned company. Across the FL, we continue
to favour exposure to key themes, including M&A, corporate restructuring
and the European recovery.

* Ocado: Beneficiary of grocery channel shift, Amazon risk overdone
Ocado has an industry-leading solution to online grocery delivery, allowing
increasing asset turn in the UK and expansion opportunities into international
markets. In our analysts’ view, recent concerns over the entry of Amazon
Fresh (which have seen the stock fall 20% over one month) are overdone.

* Prudential: Multi-year compounder at discount valuation
Prudential has a unique and diversified franchise. Our analysts think delivery
of its successful existing strategy, coupled with even sharper execution
under the new CEO, will continue to drive significantly better earnings and
dividend growth than for most of our European insurance coverage.

* Tullow: Key strategic assets at a compelling valuation
With an average breakeven of $38/bl for its 3 growth projects (TEN, Uganda
& Kenya), Tullow screens as an attractive target in the global E&P space. Our
analysts’ believe the company’s high financial leverage also gives the majors
an opportunity to refinance the company at a lower cost of capital.

* Wienerberger: Lending surveys support construction recovery
A play on European construction recovery, Wienerberger’s 2016 growth is
supported by lead indicators, in our analysts’ view. At 8.2x 2015E EV/EBITDA,
Wienerberger is the only building materials stock trading materially below
mid-cycle multiples, despite earnings being among the most depressed.

* Maersk: Recovery & restructuring option at trough valuation
Trading at just 8.8x 2016E P/E, Maersk’s potential earnings growth (15% in
2016E driven by cost savings and recovery in global trade) and returns
(11% ROE/ROIC vs. c.8% WACC) are undervalued, in our analysts’ view.
Medium term, they believe potential further portfolio streamlining could
drive a re-rating.

(BofA-ML) General Retail : Online Retail – Analysing penetration rates

Online Retail – Analysing penetration rates and growth trajectory

* Online retail growth to outperform but at slower pace
Growth in online retail penetration has exceeded expectations over the past five years,
on the back of increased mobile e-commerce, broader ranges and more shopper-friendly
websites. While the channel shift will continue, we expect growth to slow, especially in
more developed markets, such as the UK, where adult online shopping penetration rates
have risen to 75% from 60% in 2009.
Our analysis of the UK and US shows that online apparel retail growth rates remain
robust (>10%) until penetration rates reach over 25%. As online penetration rates rise
towards 35%, growth rates tend to slow to 5-10% pa. In the UK, further growth in
apparel online retail sales will likely be driven less by penetration and more by average
spend per head. As well as macroeconomic conditions, this depends on consumers
shopping more online as they gain confidence in this channel and as free and/or
convenient delivery methods encourage them to make more regular purchases.

--> In the UK, we still like Next (raising PO to 8650p) as we believe the market underappreciates its online business (both UK and increasingly International). We also maintain our Buy rating on Sports Direct given its strong market position and accelerating online business on the back of click & collect. H&M remains our contrarian
large-cap Buy; we see its online business helping to drive international expansion and its long-term store roll-out potential. Our PO on SuperGroup is raised to 1600p (1450p) on continued recovery prospects. In a separate note, we upgrade Asos to Buy (PO 4300p) post the recent 25% de-rating. Of the pure-play online retailers, In our view, Asos has significant growth opportunities which should enable it to grow its revenue to £5bn by 2024E, a 10-year CAGR of 20%. In addition, we see scope for the operating margin to improve given the high operating cost base.