>>> US Gapping down:

Gapping down

In reaction to disappointing earnings/guidance: MS -4.5% (missed on top and bottom lines; said volatility in global markets led to a difficult environment), VRX -2.3% (beats by $0.04, reports revs in-line; slightly raises Q4 guidance).

Other news: GNCA -32.2% (reports top-line results from a Phase 2a clinical trial for GEN-004, neither of the endpoints achieved statistical significance), GLDD -15.6% (initiates a review of potential strategic alternatives, withdraws FY15 EBITDA guidance, announces the retirement of CEO Jonathan W. Berger), SDRL -5.8% (commented on investigation into Sevan Marine/Drilling, prior to SDRL acquisition), PBR -3.7% (announces that its average production of oil and natural gas was 2.72 mln barrels of oil equivalent per day in September vs. 2.88 mln boed produced in August), ZINC -2.8% (general weakness in mining), FCX -2.4% (general weakness in mining), SUNE -2.2% (still checking for anything specific),SHPG -1.1% (receives a Complete Response Letter from the FDA regarding the NDA for lifitegrast for the signs and symptoms of dry eye disease in adults), AGN -0.9% (presents results of its HARMONY study).

Analyst comments: UBNT 3.3% (downgraded to Underperform at JMP Securities), ORCL -1.4% (downgraded to Sector Weight at Pacific Crest), TEF -1.3% (downgraded to Underperform from Neutral at Credit Suisse), STX -1.1% (downgraded to Neutral from Positive at Susquehanna).

>>> US Gapping Up

Gapping Up:

In reaction to strong earnings/guidance: None this morning

M&A news: CCG +19.7% (to be acquired by Harrison Street Real Estate Capital for $7.03/share, or ~$1.9 bln), PMCS +13.3% (MSCC proposes to acquire PMCS for $11.50/share, or ~$2.4 bln; believes its offer constitutes a 'superior proposal' over the Skyworks (SWKS) deal), DBD +3.3% (in talks with Wincor Nixdorf regarding a potential business combination valued at roughly ~$1.8 bln).

Other news: WTW +58.9% (partners with Oprah Winfrey; Winfrey will purchase newly issued shares representing 10% of the shares outstanding, and options to acquire an additional 5% of shares), CPXX +9.6% (announces Positive Recommendation from Data And Safety Monitoring Board for Phase 3 Study Of CPX-351), ZFGN +9.1% (continued volatility), PLX +7.8% (reports positive long term data on PRX-102 for fabry disease; meaningful clinical benefit demonstrated across all key disease parameters reversal in eGFR), OCN +7.5% (to voluntarily pay down $50 mln of its Senior Secured Term Loan Facility, will have ~$476.6 mln outstanding afterwards), PLUG +5.6% (announces that its average production of oil and natural gas was 2.72 mln barrels of oil equivalent per day in September vs. 2.88 mln boed produced in August), TSYS +2.6% (receives delivery order with a $91 mln ceiling contract value from U.S. Army for SNAP deployable satellite systems sustainment), DB +2.5% (reshuffles organizational structure, various upper management roles), NAT +2.5% (favorable commentary on Friday's Mad Money), TKC +1.7% (still checking), ARRS +1.1% (provides update on pending merger with Pace, warns the closing may not occur until late December or 1Q16).

Analyst comments: DRI +0.6% (upgraded to Buy at Maxim Group; tgt $80).

(MS) Morgan Stanley analyst: Recommend long Euro at 1.1350 to target 1.2000 (sto

Morgan Stanley analyst: Recommend long Euro at 1.1350 to target 1.2000 (stop placed at 1.1250) 
- Remain USD bearish
- Draghi may use the this week press statement to keep the door open for further ECB action, but he might have to bring deposit rate cuts back into play to weaken the EUR significantly.
- The ECB extending its QE operation or increasing the amount of its monthly purchases or changing the composition of its security purchases has been mostly priced in by markets

>>> ECB chief Draghi expected to signal this week that he is ready to launch ano

ECB chief Draghi expected to signal this week that he is ready to launch another wave of monetary stimulus to boost the euro zone economy - financial press 
- Analysts expect the ECB to keep rates on hold, but think it will signal another phase of quantitative easing, or QE2, before the end of the year

--> ECB meets on Thursday, Oct 22nd in Malta 

>>> Asian Update

Asian Mid-session Update: China GDP tops consensus but still slows to 6-year lows


***Economic Data***
- (CN) CHINA Q3 GDP Q/Q: 1.8% V 1.8%E; Y/Y: 6.9% (6-year low) V 6.8%E; YTD: 6.9% V 6.9%E
- (CN) CHINA SEPT YTD FIXED URBAN ASSETS Y/Y: 10.3% V 10.8%E; multi-year low
- (CN) CHINA SEPT RETAIL SALES Y/Y: 10.9% V 10.8%E; 8-month high
- (CN) CHINA SEPT INDUSTRIAL PRODUCTION Y/Y: 5.7% V 6.0%E (6-month low); YTD: 6.2% V 6.3%E
- (CN) China National Energy Administration (NEA): China Sept power consumption 456.3B Kwh, -0.2% y/y v +1.9% prior
- (NZ) NEW ZEALAND SEPT PERFORMANCE SERVICES INDEX: 59.3 V 58.5 PRIOR; Highest since Nov 2007
- (UK) UK OCT RIGHTMOVE HOUSE PRICES M/M: 0.6% v 0.9% PRIOR, Y/Y 5.6% (3-month low) v 6.4% PRIOR

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.6%, S&P/ASX +0.2%, Kospi -0.1%, Shanghai Composite +0.9%, Hang Seng flat, Dec S&P500 -0.2% at 2,021

***Commodities/Fixed Income***
- Dec gold -0.9% at $1,172/oz, Dec crude oil -0.3% at $47.58/brl, Dec copper -0.5% at $2.39/lb
- USD/CNY: (CN) PBoC sets yuan mid point at 6.3527 v 6.3436 prior setting; weakest Yuan setting since Sept 30th
- (CN) China MOF sells 30-yr bonds, avg yield 3.74%
- (KR) South Korea sells KRW800B in 10-yr govt bonds, avg yield 2.105%
- (JP) BOJ offers to buy ¥400B in 1-3yr JGBs, ¥400B in 3-5yr JGBs, ¥400B in 5-10yr JGBs

***Market Focal Points/FX***
- Shanghai Composite is leading regional indices after a mixed set of economic data out of China. Q3 GDP was the most critical figure, marginally beating expectations at 6.9%, and the markets responded positively even though this rate of growth is the lowest in 6 years. AUD/USD jumped about 40pips above 0.7280 in the wake of the data, NZD/USD rallied some 25pips above 0.6810, and USD/JPY was up over 40pips above 119.60.

- Additional economic datapoints for September are giving investors less reason for optimism, and in the eyes of some analysts, are showing sufficient divergence to question the accuracy of the GDP print. Fixed asset investment growth printed a new multi-year low, as property investment slowed and property construction remained in the red. New home sales value growth also slowed to 18.2% from 18.7%. Industrial output data were similarly downbeat, coming in at a 6-month low of 5.7%. Power generation and steel output were down y/y, while oil production growth slowed to 2.7% from 3.6%. China Stats Bureau (NBS) spokesperson Sheng spoke after the release, stating the economy is still faced with downward pressure and also pointing to global weakness resulting in large pressure on export space. Looking ahead however, Sheng said the economy would maintain stable growth in Q4 and 2016. Note that going into the release, premier Li stated it would not be easy for China to achieve 7% (target) GDP, but that it was acceptable for growth to be a little higher or lower than 7% as long as employment remains adequate and incomes continue growing. Separately, a researcher with NDRC said China must boost infrastructure investment to help stabilise growth.

- Outside of Chinese economic figures, BOJ Gov Kuroda spoke at a quarterly meeting of the central bank's regional branch managers. Kuroda largely reiterated some of the most recent BOJ talking points, stating the economy is recovering moderately, emerging market slowdown is evident in exports and output, and also anticipating inflation to remain around zero for the time being.

***Equities***
Notable movers by sector:
- Consumer discretionary: Sands China 1928.HK -3.6% (CFO to step down); Tsingtao Brewery Co 168.HK -1.3% (sets up JV with Suntory China); China Southern Airlines 1055.HK +1.5% (exec under investigation); Peak Sports Products Co 1968.HK +1.9% (Q3 result)
- Financials: China Galaxy Securities Co 6881.HK -0.9% (Sept result); China Overseas Land 688.HK -1.7% (Sept result); China Overseas Grand Oceans Group 81.HK +2.0% (Sept result)
- Industrials: Zhuzhou CSR Times Electric Co 3898.HK -6.3% (9-month result); Qingdao TGOOD Electric Co 300001.CN +1.9% (Q3 result); Cardno Ltd CDD.AU +9.2% (Crescent sweetened bid)
- Technology: China Electronics Corp Holdings Co 85.HK+7.8% (possible disposal of unit); Tencent Holdings 700.HK -0.1% (partnership with JD)
- Materials: Arrium ARI.AU +9.5% (Q1 result)
- Energy: S-Oil Corp 010950.KR +1.2% (Q3 result)

>>> Total : Sells 15% interest in Gina Krog Field to Sequa Preoleum for NOK1.4B

Sells 15% interest in Gina Krog Field to Sequa Preoleum for NOK1.4B 

announce that its subsidiary Tellus Petroleum AS ("Tellus") has entered into an agreement with Total E&P Norge AS to purchase interests of 30% in PL 029C, 14.78% in PL 029C and 21.8% in PL 048, representing 15% in the Gina Krog unit on the Norwegian Continental Shelf. The effective date of the transaction is 1st January 2015 and the transaction is subject to normal consent by the Norwegian Authorities. The transaction is planned to be funded through a combination of debt and equity, with completion planned for the end of 2015 contemporaneously with the completion of the Wintershall portfolio transaction, as announced on 18th June 2015.

The proven and probable (2P) reserves in the transaction is some 33 mill. boe net to Tellus as per the official Norwegian Petroleum Directorate data. The field is operated by Statoil (58.7%) and partners are Total (30%), PGNiG (8%) and Det norske (3.3%). The production is expected to commence in mid-2017 ramping up to a plateau of some 10,000 boed net to Tellus. The Plan for Development and Operation ("PDO") was approved in June 2013 and gross capex on Gina Krog is some NOK 32 billion.

In the transaction, it is agreed that Tellus will pay a completion payment of ca NOK 1.4 billion pre-tax based on the latest operator project cost estimates for Total's share in 2015. The seller will retain the tax balances related to the Gina Krog investments prior to the effective date. On signing, Tellus paid a deposit of NOK 50 million to Total. On this basis for the Sequa Petroleum group, the all-in costs until first production for Gina Krog will be 11 USD/boe pre-tax.

This transaction is a positive addition to the portfolio purchase agreement with Wintershall, announced in June. Gina Krog provides the company with a further high quality asset in our core North Sea area, with a production start date between Ivar Aasen and Maria. Once in production, the field will provide cash-flow that will enable further company growth. The deal delivers on Sequa and Tellus's strategy of rapid growth through acquiring high quality material assets that are in production or being moved through development into production.