>>> US After Hours Summary: STLY +19.8%, NGD +17%, PNRA +8.2%, Y

After Hours Summary: STLY +19.8%, NGD +17%, PNRA +8.2%, YELP -16.7%, TWTR -11.2%, AKAM -10.4% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: STLY +19.8%, NGD +17%, CALX +15.6%, RUBI +15.5%, NHTC +10.2%, AIZ +9.8%, BWLD +9.6%, RPXC +8.6%, BBSI +8.5%, PNRA +8.2%, RSYS +7.4%, ATRC +5.9%, WNC +5.1%, NUVA +5%, CTXS +3.8%, GILD +3.1%, RGR +3%, TRU +2.6%, SPWR +2.5%, ESRX +1.7%, IACI +1.6%, HURN +1.3%, NCR +1%, APC +0.9%, AJG +0.2%, SSW +0.2%

Companies trading higher in after hours in reaction to news: OGEN +19.0% (announced positive data for multiple compounds from its Mutacin 1140 lantibiotic platform ), NHTC +10.2% (increased quarterly dividend by 33% and authorized $15 mln share repurchase; co also reported earnings), NUVA +5.0% (reached a definitive settlement with the US DOJ; co will pay $13.5 mln, plus fees and accrued interest in settlement), CTXS +3.8% (announced the impending retirement of CEO Mark Templeton and initiation of a CEO search process; co also reported earnings), MX +0.7% (Engaged Capital disclosed 7.3% active stake in 13D filing; believes co is undervalued), GCI +0.7% (announced quarterly common stock dividend of $0.16/share and Board approval for its previously announced $150 mln share buyback program)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: YELP -16.7%, TWTR -11.2%, VDSI -10.9%, AKAM -10.4%, GIGA -9.8%, ATML -6.4%, BBOX -3.5%, RRC -2.8%, AFL -2.1%, SLCA -2%, HA -1.7%, EW -0.6%, RNR -0.3%, BXMT -0.1%

Companies trading lower in after hours in reaction to news: ZGNX -8.1% (announced a public offering of 3.8 mln common stock shares), SFY -7.0% (reported that it has retained Lazard Freres & Co to advise it with respect to capital structure, financing alternatives and related strategic opportunities), PPP -2.2% (reported a fatal accident involving an employee at its San Dimas mine in Mexico; normal operations continue as co and local authorities investigate the incident), SCTY -0.9% (co's subsidiary SolarCity LMC Series IV announced an offering of $123.5 mln in Solar Asset Backed Notes, Series 2015-1)

NY Post : What does China’s collapsing stock market mean for the

What does China’s collapsing stock market mean for the US?

As the Chinese stock market continues to collapse, I’m probably not the only one selfishly thinking: What does that mean for us here in the US?
A good question. And I wish I had a good answer, but I don’t. Nonetheless, let me throw out some thoughts anyway.
Clearly, the decline in Chinese stock prices will have an impact on other markets. I know that for certain because American stock markets have already been down for five straight days, including Monday’s 127.94-point drop in the Dow Jones industrial average to 17,440.59 and the Standard & Poor’s 500 index’s decline by 12.01 points to 2,067.64.
Over those five trading days, the Dow has declined by a total of 641.72 points and the S&P by 58.93 points. So, obviously, people are concerned about what’s happening in China — coming as it does when Europe is also in disarray and our own economy is not doing great.
But the US stock market may not be where the real trouble will happen. You should watch the US bond market closely. The Chinese government owns $1.27 trillion in US government bonds. Those are the largest holdings of anyone.
Beijing has been vigorously buying stocks to help its own markets. Even though this effort has been a failure so far, the Chinese government on Monday said it would increase the stock purchases to buoy the markets.
It won’t be long before someone asks: Where is Beijing going to get the money to bail out the stock market while also footing the bill for stimulating its economy?
And it won’t be very long afterward that someone says: It will have to sell some of its US bond holdings. Whether or not that ever happens, just a discussion of that possibility will have a profound effect on our country.
If the Chinese government actually starts cashing in US government bonds, interest rates in our country will rise whether the Federal Reserve likes it or not. And once rates rise, the Fed will be forced to join in by raising the short-term rates it controls.
Under this scenario, the Fed would lose control of US monetary policy.
If the Chinese become sellers of US bonds, someone else will have to pick up the slack. Japan and OPEC are both possible buyers, especially after interest rates rise and US bonds become more attractive. The US will still be a safe haven for investors — maybe more so if problems in China and Europe continue — but the shift from one group of buyers to another could be traumatic.
There are also the lessons that America can learn from China’s experience.
Specifically, we should remember what happens when investors can’t trust a government’s economic statistics. China could report tomorrow that its economy is booming — and nobody would believe it. That country’s credibility is shot.
We in the US are getting close to the point where people shouldn’t believe the economic data coming out of Washington. You already know what I’ve found during a years-long investigation of shoddy and purposely falsified data collection by the US government, especially the Census Bureau.
Last week came news that the Fed accidentally released a report from its staff claiming that the US economy was much weaker than Janet Yellen, head of our central bank, and her colleagues on the Federal Open Market Committee were letting on.
The staff’s conclusion shouldn’t surprise anyone. While the Commerce Department on Thursday will report a pickup in Gross Domestic Product growth in the second quarter, the US economy still likely expanded by only 1 percent during the first six months of 2015.
And even with the second-quarter pickup, corporate profits are still weak and revenue growth is nonexistent. According to Thomson Reuters, second-quarter corporate revenue has dropped 3.9 percent after 38 percent of the 500 companies in the S&P index reported their results.
Cumulative profits are down 0.3 percent in the quarter.
And what is happening in China is going to hurt the profits and revenues of many US companies.
Can the US stock market bubble survive all the bad stuff going on in the world? Sorry, if I knew that, I’d start a hedge fund and charge you for advice. But this much is certain: There is a bubble.
I learned a little about computer hacking from Shaun Murphy of PrivateGiant, a company that helps people avoid having their information stolen.
Did you know, for instance, that lots of information can be recovered from dating websites and social media like Facebook? And, says Murphy, “anything that has a personal linkage to who you are in real life” is extremely valuable.
For example, a hacker doesn’t always need to get your credit card or Social Security numbers to score big. The names of your best friends, pets and first school and other trivial information allow a hacker to become you.
“It lets me take over your digital identity,” says Murphy. Each bit of personal information can sell for $1 to $6 on the so-called Dark Web.
Murphy and I plan to go shopping soon. Maybe we’ll buy your mother’s maiden name or splurge to find out your dress size

FT : HeidelbergCement takes over Italcementi

HeidelbergCement takes over Italcementi

HeidelbergCement, Germany’s largest cement maker, is to buy a 45 per cent stake in Italcementi, the Italian building materials company, for €1.7bn in cash and shares, a move that will see it later acquire the remainder of the company.
The deal marks the latest round of consolidation in the cement and crushed rock industry, with the two companies combining to create the number two group in the cement industry worldwide, with operations in more than 60 countries.

HeidelbergCement will pay €10.60 per Italcementi share for the 45 per cent stake. In a statement late on Tuesday, it said that after that transaction closes next year, it will launch a takeover offer for the remaining shares at a price equal to €10.60 in cash. The deal values Italcementi’s equity at €3.7bn in today’s terms. Italcementi shares closed 6.5 per cent higher on Tuesday at €6.59.
The deal comes come just weeks after Europe’s two largest cement and crushed earth companies Holcim and Lafarge completed a €41bn combination.
Italcementi is 45 per cent owned by the Pesenti family, one of Italy’s biggest industrial dynasties. HeidelbergCement’s largest shareholder with a 25 per cent is the Merckle family.
Three big global players — LafargeHolcim, HeidelbergCement and Cemex — already dominate the industry, which has been under investigation by the European Commission for cartel behaviour and price fixing since 2008.
HeidelbergCement, which has 45,000 employees in 2,300 locations in more than 40 countries, is present in northern Europe, Asia and the US. Italcementi, which is in 22 countries, is extensively exposed to southern Europe. Both groups have businesses in the US. Italcementi made revenues of €4.1bn in 2014 compared with around €13bn in sales at HeidelbergCement.
“The tie up of HeidelbergCement and Italcementi is ideal. No other two groups in the sector have such complementary exposure,” Bernd Scheifele, chief executive of HeidelbergCement said in a statement.
Carlo Pesenti, CEO of Italcementi, said the deal would “strengthen [Italcementi] for the future”.
The cash-and-shares deal will see Heidelberg taking control of the 45 per cent of Italcementi held through the Pesenti family’s Italmobiliare vehicle at €10.60 per share. The Pesenti family will receive around 5 per cent of the combined group as part of the deal making them the second largest shareholders after Germany’s Merckle family.
Morgan Stanley and Deutsche Bank worked with HeidelbergCement. Mediobanca advised Italmobiliare.
The deal underlines a period of dynamism in corporate Italy where several of the country’s largest family-owned companies are in ferment spurred by dynastic issues of succession and a desire to diversify beyond Italy following a brutal three-year recession.
Italy’s Agnelli family, the majority owners of Fiat Chrysler Automobiles through family investment fund Exor, which has traditionally set the tone for Italian capitalism encapsulates the change. Under Exor chairman John Elkann, the grandson of Gianni Agnelli, the family is seeking to expand into US reinsurance with a bid for PartnerRe and has said it wants to up its stake in The Economist Group.

>>> US Close Dow+1.09% S&P+1.24% Nasdaq+0.98% Russell+0.82%

Closing Market Summary: Stocks Snap Five-Day Skid

The stock market snapped its five-day losing streak with a daylong Tuesday rally that sent the S&P 500 higher by 1.2%. The benchmark index tested its 100-day moving average (2,095) during afternoon action while the Nasdaq Composite (+1.0%) underperformed throughout the day.

Equity indices rebounded from losses registered over the past week, starting the day on an upbeat note after the overnight session saw more volatility in Asia. Specifically, China's Shanghai Composite was down as much as 5.1% at the start of the trading day, but narrowed its loss to 1.7% by the close. The turnaround off session lows coincided with a spike in S&P 500 futures in the wee hours of the morning.

All ten sectors posted gains with some of the recent underperformers leading the market higher. To that point, the energy sector surged 2.9% after sliding 4.3% over the past five days. The growth-sensitive sector was lifted by the shares of BP (BP 37.29, +1.24) after the industry giant reported a bottom-line miss on better than expected revenue. Another large sector member, LyondellBasell (LYB 92.46, +2.61) spiked 2.9% in reaction to a bottom-line beat. On a related note, crude oil rose 1.3% to $47.98/bbl, providing added support.

Similar to energy, the other commodity-related sector—materials (+2.1%)—finished well ahead of most other groups. Steelmakers underpinned the space after AK Steel (AKS 2.90, +0.38) soared 15.1% in reaction to a bottom-line beat, overshadowing losses in Dow component DuPont (DD 55.90, -0.83) after the company reported disappointing results.

Elsewhere among Dow members, Pfizer (PFE 35.35, +1.01) and Merck (MRK 57.52, +0.53) reported better than expected earnings, helping the health care sector (+1.8%) finish among the leaders. Furthermore, biotechnology also contributed to the strength in the sector, evidenced by a 2.5% gain in iShares Nasdaq Biotechnology ETF (IBB 382.84, +9.26).

The relative strength in biotechnology was not enough to pull the Nasdaq in-line with the broader market as several large cap technology sector (+0.9%) components underperformed. The likes of Cisco Systems (CSCO 28.21, 0.00), Google (GOOGL 659.66, +1.39), and Hewlett-Packard (HPQ 30.27, +0.02) ended little changed while Baidu.com (BIDU 168.03, -29.65) plunged 15.0% after the company reported disappointing results and issued cautious guidance.

To be sure, the slight underperformance in technology was not an issue for the broader market, which benefitted from relative strength in other areas like industrials (+1.9%). The cyclical sector rallied behind transport stocks after UPS (UPS 99.94, +4.82) and JetBlue Airways (JBLU 22.82, +0.47) reported earnings. UPS beat bottom-line estimates on light revenue while JetBlue delivered in-line results. The two stocks posted respective gains of 5.1% and 2.1% while the Dow Jones Transportation Average spiked 2.8%.

Treasuries retreated overnight and held modest losses throughout the day with the 10-yr yield climbing rising two basis points to 2.25%.

Today's participation was ahead of recent averages as more than 900 million shares changed hands at the NYSE floor.

Economic data was limited to Case-Shiller 20-City Index and Consumer Confidence:
  • The Conference Board's Consumer Confidence Index fell to 90.9 in July from a downwardly revised 99.8 (from 101.4) in June while the consensus pegged the Index at 100.0 
    • The reading was the lowest since September 2014 and well below the most pessimistic forecast (97.5) in the consensus 
    • The Present Conditions Index fell to 107.4 in July from 110.3 in June while the Expectations Index dropped to 79.9 from 92.8 
      • That was the lowest expectations reading since falling to 76.5 in February 2014 
  • The Case-Shiller 20-city Home Price Index for May rose 4.9% against a 5.6% increase expected by the consensus 
    • This followed the previous month's revised increase of 5.0% (from 4.9%) 
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while Pending Home Sales for June will be reported at 10:00 ET (Briefing.com consensus 1.0%). Also of note, the Federal Reserve will release its latest policy directive at 14:00 ET.
  • Nasdaq Composite +6.9% YTD
  • Russell 2000 +1.6% YTD
  • S&P 500 +1.6% YTD
  • Dow Jones Industrial Average -1.1% YTD

(BN) Altria, Philip Morris Should Become One Company Again: Real M&A


Altria, Philip Morris Should Become One Company Again: Real M&A
2015-07-28 17:32:14.531 GMT


(For a Real M&A column news alert: SALT REALMNA <GO>.)

By Tara Lachapelle
(Bloomberg) -- It may be time to put Altria Group Inc. and
Philip Morris International Inc. back together.
The world’s most valuable tobacco companies split apart
more than seven years ago to set free the faster-growing
overseas operations while the U.S. business was entangled in
smoker lawsuits. But things have changed since then, and the
rationale that justified the separation no longer exists.
Altria, the $108 billion maker of Marlboro cigarettes that
will release second-quarter results Wednesday, has largely put
the legal morass behind it. And Philip Morris, its $133 billion
international counterpart, has lost its luster as cigarette
demand wanes in Europe. Both stocks are now trailing rival
Reynolds American Inc., which in June completed its $28 billion
acquisition of Lorillard Inc., owner of the Newport brand.
As a result of that merger, the industry is consolidated to
a point where the only remaining takeover options for Altria and
Philip Morris are probably one another. They’ve already begun
working more closely together in recent months, joining forces
to develop new products such as electronic-vapor cigarettes.
“This could be a step toward an eventual recombination,”
Ken Shea, an analyst for Bloomberg Intelligence, said in a phone
interview. “Being geographically diverse is probably a good
thing for a tobacco company now. Philip Morris is the best
option for Altria to team up with.”

Spinoff Rationale

Iro Antoniadou, a spokeswoman for Philip Morris, said that
“many of the reasons articulated by the board at the time of
the spinoff are still relevant today.” She declined to comment
on whether Philip Morris is considering a merger with Altria, as
did Bill Phelps, a spokesman for Altria.
“Altria spun off Philip Morris International so that each
business could focus exclusively on their own opportunities and
to address their own challenges with the ultimate goal of
building long-term shareholder value,” Phelps said by phone.
“It’s important to look at the results Altria has achieved
since the spinoff.”
Altria’s share price has more than doubled since Philip
Morris began trading separately in March 2008. It is projected
to climb less than 6 percent over the next 12 months, according
to analysts’ estimates compiled by Bloomberg.
As smoking rates diminish in most regions of the world,
growth is hard to find. Becoming one company again would allow
Altria and Philip Morris to fuse their research and development
efforts and share resources.
It would also make Altria a global entity once again, while
giving Philip Morris renewed exposure to the U.S., where
cigarette makers have strong pricing power. The three most
popular brands -- Marlboro, Newport and Camel -- are owned by
two competitors: Altria, the U.S. market leader, and Reynolds,
which is No. 2.

Activist Bait

With so few of Altria’s and Philip Morris’s shares owned by
insiders, neither company is safe from activist investors,
should any take interest. Officers and directors at Altria own
just 0.2 percent of the stock. The figure is 0.3 percent at
Philip Morris, data compiled by Bloomberg show.
While the companies’ size could be a deterrent -- a 5
percent stake in Altria would cost more than $5 billion -- some
activists have had success taking even small positions in large
companies. Nelson Peltz owns just 1.25 percent of PepsiCo Inc.
yet has had influence as an activist shareholder at the $141
billion soda giant.
Investors also tend to get behind activist campaigns when a
stock is underperforming, as Philip Morris’s has. The share
price has fallen 4.9 percent in three years, while the Standard
& Poor’s 500 Index added 55 percent. Altria gained 52 percent in
that span.
“There really is no blockade from an ownership
standpoint” at Altria and Philip Morris, Shea said. “It could
allow activists to challenge the status quo.”

For Related News and Information:
Broader Altria-Philip Morris R&D Collaboration May Lead to M&A
Low Philip Morris, Altria Insider Stakes May Invite Activists
U.S. Tobacco Industry Is Enjoying Return to ‘Old Days,’ CEO Says
Reynolds’s Shrinking Sales Spark Tobacco Takeover Talk: Real M&A
Bloomberg Intelligence - Tobacco Industry: BI TOBC <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>

To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman

(BFW) LVMH 1H Organic Sales Growth Beats Ests.

LVMH 1H Organic Sales Growth Beats Ests.
2015-07-28 15:48:44.669 GMT


By Heather Burke
(Bloomberg) -- LVMH 1H total rev. EU16.71b, est. EU16.37b.

* 1H total organic sales growth 6%, est. 4%
* 1H total profit recurring ops EU2.96b, est. EU2.93b
* 2Q organic sales growth 9%, est. 5%
* To pay interim div. EU1.35
* Call 6pm CET +44 (0) 203 367 9457
*Preview


For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Heather Burke in London at +44-20-3525-2044 or
hburke2@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net

REuters - Dropping deal a fast track to Iran nuclear weapon, Kerry warns Congres



Dropping deal a fast track to Iran nuclear weapon, Kerry warns Congress


Secretary of State John Kerry told U.S. lawmakers on Tuesday he wanted to set the record straight on the Iran nuclear deal and equated walking away from the agreement to giving Tehran a fast track to a nuclear weapon.

"There are conclusions that have been drawn that don't in fact match with the reality of what this deal sets forth. And we happily look forward to clarifying that during the course of this hearing," Kerry told the House of Representatives Foreign Affairs Committee.

Joined by two other members of President Barack Obama's cabinet, Treasury Secretary Jack Lew and Energy Secretary Ernest Moniz, Kerry was part of the Democratic administration's blitz to coax lawmakers into supporting the nuclear deal.

Under a law Obama signed in May, the Republican-controlled Congress has until Sept. 17 either to endorse or reject or do nothing about the agreement, allowing it to take effect. Rejection would prevent Obama from waiving most U.S.-imposed sanctions on Tehran, a key component of the deal.

Kerry, Lew and Moniz also testified in the Senate on Thursday, and Defense Secretary Ash Carter is among officials due to speak to lawmakers later this week.
Under the July 14 deal, world powers agreed to lift sanctions on Tehran in return for long-term curbs on a nuclear program that the West suspects was aimed at creating an atomic bomb, but which Tehran says is peaceful.

Kerry insisted that walking away would isolate the United States.
"If we walk away, we walk away alone. Our partners are not going to be with us. Instead they'll walk away from the tough multilateral sanctions that brought Iran to the negotiating table in the first place," Kerry said.

House members signaled the difficulties the administration will face getting Congress on board.

Representative Ed Royce, the committee's Republican chairman, said the deal would provide Tehran with a "cash bonanza" while weakening Washington's ability to pressure Iran's leaders.
Some Democrats were skeptical also. Representative Eliot Engel, the committee's top Democrat, said he saw a number of troublesome issues in the agreement.

The administration officials insisted the deal was a better way to keep Iran from developing a nuclear weapon than more sanctions, or military action.