RBC PRE-MARKET INDICATIONS
CREDIT SUISSE 0% Says evaluating all options prior to Strategy Day
ESURE +1% Car insurance premiums in Britain rose 4.8%
FIAT +1% Ferrari Said to Push for EU11b Valuation in IPO
FIRST GROUP +1% Bid spec in Times. Story to a move(?)
GIVAUDAN 0% 3Q Sales In Line With Estimates, Confirms FY Targets
IMPERIAL TOB +1% Rehashed bid spec in Daily Mail
LSE +2% To Sell Russell Investments for $1.15b, Reduce Debt
MARKS & SPENCER +1% UK Sept Sales Helped by Pent Up Clothing Demand, BDO Says
NORSKE HYDRO +1% Signs LOI With Vale to Raise Mrn Ownership to 45%
PRESIDENT ENERGY +2% Strong results from Paraguay seismic Campaign
ROCHE +1% Ocrelizumab Works in Hard-to-Treat Multiple Sclerosis
STAGECOACH 0% Bid spec in Telegraph
TELECOM ITALIA 0% Said to Eye 40% Stake in Metroweb
07:46:12 GAURAV PANCHAL : ML SHAEFFLER - First day of trading, priced at EUR 12.5, ticker: SHA GY.......
GIVAUDAN - Q3 LFL 3.3% v 1.8% cons, beat in fragrances & flavours, solid+2-3%
ZALANDO - We INITIATE coverage with a BUY rating, PO EUR 36...............+2%
ROCHE - Positive data from Ocrelizumab trial re Multiple Sclerosis........+2%
SYMRISE - +ve read from v strong Q3 LFL from Givaudan...................+1-2%
OILS - Oil strong again overnight, energy best sector in US.............+1-2%
GLENCORE - cutting 500kt of zinc production per year (total market 13mt)+1-2%
VED/NYR - Positive read from Glencore cutting annual Zinc production....+1-2%
LLOYDS - Gov stake now sub 11%, run-rating for Dec exit of drip feed......+1%
NORSK HYDRO - Alcoa -5% after hours post numbers, upgraded away from us...+1%
LADBROKES - Secures £1.5bn financing for proposed merger with Coral.......+1%
NAT GRID - We DOWNGRADE to Neutral, PO unch at 965p.......................u/c
ACS - US cancels a EUR 267m contract for ACS due to delays, El Economista.u/c
T.ITALIA - Said to eye 40% stake in carrier Metroweb......................u/c
PETROFAC -
Ends contract with ZPMC due to performance issues..............u/c
IFX/STM - -ve read from Gartner numbers, PCs declined -8% YoY...........-0.5%
LSE - Sells Russell for $1.15bn, c 70p per sh lower than expected.......-2-3%
TRYG - Q3 a miss impacted by drop in equity, led to DKK 400m loss.......-3-4%
CREDIT SUISSE 0% Says evaluating all options prior to Strategy Day
ESURE +1% Car insurance premiums in Britain rose 4.8%
FIAT +1% Ferrari Said to Push for EU11b Valuation in IPO
FIRST GROUP +1% Bid spec in Times. Story to a move(?)
GIVAUDAN 0% 3Q Sales In Line With Estimates, Confirms FY Targets
IMPERIAL TOB +1% Rehashed bid spec in Daily Mail
LSE +2% To Sell Russell Investments for $1.15b, Reduce Debt
MARKS & SPENCER +1% UK Sept Sales Helped by Pent Up Clothing Demand, BDO Says
NORSKE HYDRO +1% Signs LOI With Vale to Raise Mrn Ownership to 45%
PRESIDENT ENERGY +2% Strong results from Paraguay seismic Campaign
ROCHE +1% Ocrelizumab Works in Hard-to-Treat Multiple Sclerosis
STAGECOACH 0% Bid spec in Telegraph
TELECOM ITALIA 0% Said to Eye 40% Stake in Metroweb
07:46:12 GAURAV PANCHAL : ML SHAEFFLER - First day of trading, priced at EUR 12.5, ticker: SHA GY.......
GIVAUDAN - Q3 LFL 3.3% v 1.8% cons, beat in fragrances & flavours, solid+2-3%
ZALANDO - We INITIATE coverage with a BUY rating, PO EUR 36...............+2%
ROCHE - Positive data from Ocrelizumab trial re Multiple Sclerosis........+2%
SYMRISE - +ve read from v strong Q3 LFL from Givaudan...................+1-2%
OILS - Oil strong again overnight, energy best sector in US.............+1-2%
GLENCORE - cutting 500kt of zinc production per year (total market 13mt)+1-2%
VED/NYR - Positive read from Glencore cutting annual Zinc production....+1-2%
LLOYDS - Gov stake now sub 11%, run-rating for Dec exit of drip feed......+1%
NORSK HYDRO - Alcoa -5% after hours post numbers, upgraded away from us...+1%
LADBROKES - Secures £1.5bn financing for proposed merger with Coral.......+1%
NAT GRID - We DOWNGRADE to Neutral, PO unch at 965p.......................u/c
ACS - US cancels a EUR 267m contract for ACS due to delays, El Economista.u/c
T.ITALIA - Said to eye 40% stake in carrier Metroweb......................u/c
PETROFAC -
Ends contract with ZPMC due to performance issues..............u/c
IFX/STM - -ve read from Gartner numbers, PCs declined -8% YoY...........-0.5%
LSE - Sells Russell for $1.15bn, c 70p per sh lower than expected.......-2-3%
TRYG - Q3 a miss impacted by drop in equity, led to DKK 400m loss.......-3-4%
Handelsbanken:
TRYG q3 ptp 58% below cons driven by weak investments; CoR adj worse -5%
CS:
Boliden +5-6% Glencore to reduce mine production of zinc metal
TRYG q3 ptp 58% below cons driven by weak investments; CoR adj worse -5%
CS:
Boliden +5-6% Glencore to reduce mine production of zinc metal
Cellnex +1-2% CS initiate with OUTPERFORM (Defensive growth)
Fagron +5% Received a "number of non-binding takeover offers"
Fiat +2-3% Ferrari Said to Push for $12.4 Billion Valuation in IPO
Galapagos +2% Phase 1 study shows cystic fibrosis drug to be safe
Givaudan +1% Q3 sales 1% ahead, reiterated 2010-15 target
LSE -1% Sale of Russell IM to TA Associates for $1,150m
Miners +2% Copper +2.05%, Brent +2.7%, Iron Ore +2.5%, China +0.83%
Oils +2% WTI through $50, oil stocks better in the US
Petrofac +5% Terminates Vessel Construction Contract With ZPMC
Rai Way M/P CS downgrade to NEUTRAL from OUTPERFORM (Limited growth)
Roche +1% Positive headline data for ocrelizumab, MS drug
Tryg -3-5% Numbers lower, driven by weaker investment income
Vedanta +4-5% Numbers mixed, Zinc production very strong
JPM:
BCP Owns 50.1% of Banco Millennium Angola - merging with Atlantico +2%
BCP Owns 50.1% of Banco Millennium Angola - merging with Atlantico +2%
BOL,NYR,VED +ve read from GLEN zinc prodn cuts +2%
GIVAUDAN Q315 LFL growth of 3.3% ahead of JPMe 1.4% +3%
GLENCORE plans to reduce zinc mine production by 500k tonnes per annum +3%
MITTAL JPM upgrade to OW
ROCHE Ocrelizumab data (MS drug - further details out this weekend) +1%
TEL ITALIA Hired bankers to sell it's stake in Inwit SpA. +1%
>>> Asset Class Flows
* Equities: $4.3bn outflows (3 straight weeks) (almost all viaETFs)
* Bonds: $2.4bn outflows (outflows in 8 out of past 9 weeks)
* Money-markets: huge $53bn inflows (largest in 2 years)
* Precious Metals: small outflows ($0.2bn)
>>> Equity Flows
* Japan cracks: $2.0bn outflows (biggest outflows since Nov’14)
* Worst is over for EM: small $0.6bn outflows (outflows in 13 straight weeks but pace of outflows slowing)
* Europe defiant: $2.0bn inflows (inflows in 19 out of past 21 weeks)
* US: $5.0bn outflows (outflows from both ETFs and mutual funds)
* By sector, healthcare funds see $0.9bn outflows (largest in 6 weeks); conversely, energy funds see $0.4bn inflows
>>> Fixed Income Flows
* $2.6bn inflows to Govt/tsy funds (14 straight weeks)
* $2.5 outflows from HY bond funds (outflows in 10 out of past 11 weeks)
* $2.4bn outflows from IG bond funds (4 straight weeks = longest outflow streak since Sep’13)
* $0.6bn outflows from EM debt funds (11 straight weeks)
* 10 straight weeks of outflows from bank loan funds ($0.4bn)
* 6 straight weeks of TIPS outflows ($0.3bn)
--> BofAML Trading Rules: all still signalling "buy" + client marketing feedback unanimously
bearish/all waiting for default + threat of Oct policy action + failure of oil to hit new
lows = big bounce in "crowded shorts" once SPX floor of 1850 held; SPX now
approaching big, important resistance at 2040-2062; v v few expect this ceiling to be
broken.
--> Cracks in “Crowded Longs”: Japan funds see largest weekly outflows ($2.0bn) since
Nov’14; Healthcare funds see outflows in 5 out of past 7 weeks, worst stretch since
Jun’14; watch October FMS (next Tuesday) for positioning unwind in other "crowded
trades" (EU, Tech, Discretionary) or first UW in stocks since Jul’12 to suggest unwind
mostly over.
Dow+0.82% S&P+0.88% Nasdaq+0.41% Russell+0.92% VIX 17.42 (-5.33%) Brazil+0.39%
US Market closed higher (above the 2,000) but open weak following Europe & Asian Performance, US are back in a leading mode...following very carefully chinese moves...Thanks to Tech &Healthcare S&P closed above its 50d MA, Accelearion in the US came after FED Minutes which revealed that only one Committee member believed that economic conditions do not warrant a rate hike while other members believed that a rate hike will be appropriate before the end of 2015. Despite the majority view regarding the timing of the first rate hike, several members expressed concern over downside risks to inflation. Energy & Commo sectors continue to lead the board performance, WTI spiked 3.3% @ $49.45, trading above $50 now (+2.14%)...NFLX +6.3% after announcing price increaseof service by 11.1%...EMC +4.7% on Article of Dell approach...volume were just below average @ 900mil shares...US After Hours HELE +8.4%, ATNY +1.8%, LDRH -19.9%, SMCI -16.7%, GPS -5.9%, AA -5.1% following earnings/guidance...China markets were less volatile going into next week's bulk release of September economic data and Q3 GDP. Economist with UBS said Q3 will likely show overall improvement, but GDP will slow to 6.6% from 7.0% in Q2. PBoC chief economist offered thoughts about the high-profile TPP deal from which China has been excluded, noting the mainland stands to lose 2.2pts in GDP by not joining the partnership. In Japan, BOJ Gov Kuroda defended unchanged policy at this week's meeting, expressing optimism economy will sustain moderate recovery. Sinopec Yizheng Chemical profit warning -4.2%
Nikkei +1.47% Hang Seng +1.39% Shanghai +1.24%
Eur$ 1.1280 CNY 6.3486 JPY 120.05 GBP 1.5368 BRL 3.7853 RUB$ 61.22 WTI $50.40(+1.98%)
S&P +0.07% EuroStoxx +1.12% Dax +1% SMI +1.09%
Macro :
- Merkel Says VW Affair Must Not Tarnish German Auto Industry
- Goldman Expects Copper, Aluminum Prices to Continue to Decline
- Luxury : Hengdeli -2.8% Emperor Watch -2% Prada +0.76%
Keep an eye on :
- AA US : Alcoa kicked off the official start of the US earnings season with disappointing results. Much like the case with Yum Brands earlier this week, slowdown in China was cited as the culprit, as the aluminum giant noted it lowered its estimate for 2015 automotive production growth to +1-2% from +5-8%.
- ABG/P LN : Abengoa Pledged Stake in Abengoa Yield for Loan: Expansion
- AF FP : Majority of French Believe Union Endangering Air France: Echos
- BT/A LN : BT Wants Ofcom to Look at Role of Pay TV in Industry Review: FT
- EDF FP : EDF CEO Levy Says Italy Is a Key Country for Company
- FCA IM : Fiat Chrysler Said to Offer Higher Wages in New Tentative Pact
- FCA IM : Ferrari Said to Push for EU11b Valuation in IPO
- GIVN VX : Givaudan 3Q Sales In Line With Estimates, Confirms 2010-15 Goals
- ISP IM : Italy Banks M&A to Start, Risks Are to the Downside: Berenberg
- TIT IM : Telecom Italia Said to Eye 40% Stake in Fiber Carrier Metroweb
- TIT IM : Telecom Italia Said to Hire Deutsche Bank to Sell Inwit Stake
- TRYG DC : Tryg 3Q Net Drops as Profit Hurt by One-Off, Investment Loss
- UCG IM : Italy Banks M&A to Start, Risks Are to the Downside: Berenberg
- VOW3 GY : VW May Face Individual Charges, EPA’s Brooks Says
>>> Up
*ABB RAISED TO HOLD AT JEFFERIES
*ABB ADR RAISED TO HOLD VS UNDERPERFORM AT JEFFERIES
*ARCELORMITTAL RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*ELEKTA RAISED TO HOLD AT JEFFERIES
*FERREXPO RAISED TO NEUTRAL VS SELL AT UBS
*KAPPAHL AB RAISED TO BUY AT NORDEA
*MASSMART RAISED TO OVERWEIGHT AT BARCLAYS
*NORSK HYDRO RAISED TO BUY VS NEUTRAL AT GOLDMAN
*SANDVIK RAISED TO HOLD AT JEFFERIES
*WAERTSILAE RATED NEW BUY AT JEFFERIES
*ZURICH INSURANCE RAISED TO BUY VS HOLD AT HSBC
>>> Down
*HAYS CUT TO HOLD VS BUY AT HSBC
*KAZ MINERALS CUT TO SELL VS NEUTRAL AT GOLDMAN
*NYRSTAR CUT TO NEUTRAL VS BUY AT GOLDMAN
*RAI WAY CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
*SPORTS DIRECT INTL CUT FROM OVERWEIGHT AT MORGAN STANLEY
*WEIR GROUP CUT TO UNDERPERFORM AT RBC CAPITAL
>>> PT Change
>>> Initiation
*ACS RATED NEW BUY AT CITI
*CELLNEX RATED NEW OUTPERFORM AT CREDIT SUISSE, PT EU18
*EI TOWERS RATED NEW NEUTRAL AT CREDIT SUISSE, PT EU59
*INWIT RATED NEW OUTPERFORM AT CREDIT SUISSE, PT EU5.2
>>> Call
sian Mid-session Update: Dovish Fed minutes extend the risk-on rally in Asia
***Economic Data***
- (AU) AUSTRALIA AUG HOME LOANS M/M: 2.9% V 4.7%E
- (NZ) NEW ZEALAND SEPT RETAIL CREDIT CARD SPENDING M/M: 0.9% V 0.4%E; TOTAL M/M: 0.7% V 0.1% PRIOR
***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.8%, S&P/ASX +1.0%, Kospi closed, Shanghai Composite +0.1%, Hang Seng +1.6%, Dec S&P500 -0.1% at 2,004
***Commodities/Fixed Income***
- Dec gold flat at $1,144/oz, Nov crude oil +0.6% at $49.71/brl, Dec copper +1.3% at $2.37/lb
- USD/CNY: (CN) PBoC sets yuan mid point at 6.3493 v 6.3505 prior setting; strongest Yuan setting since Aug 12th
- (JP) BOJ offers to buy ¥400B in 1-3yr JGBs, ¥400B in 3-5yr JGBs, ¥240B in 10-25yr JGBs, ¥140B in JGBs with maturity over 25-yrs, as well as ¥1.5T in T-bills
- (AU) Australia MoF (AOFM) sells A$800M in 3.25% 2018 Bonds; avg yield: 1.884%; bid-to-cover: 3.94x
***Market Focal Points/FX***
- US equities rallied into the close as S&P500 sliced through and closed above the psychological 2,000 level resistance for the first time in nearly 2 months after the minutes from the September Fed meeting proved to be less hawkish than anticipated. Despite the close call going into that hold among investors, the actual text of the minutes suggested there wasn't nearly as much disagreement among FOMC members. In fact, a significant number of Fed officials expressed concern over the state of inflation, even though much of the Fed-speak going into that decision suggested the widely held view regarding low price pressures is that it would be "transitory." Materials, metals, and energy are helping S&P/ASX outperform, with the rally also reflected in commodities futures - crude oil remains on the cusp of $50/brl and Dec copper gained another 2% in electronic trade toward $2.40/lb. In FX, AUD/USD was most volatile, rising 30pips to $0.7280, USD/JPY traded in a 20pip range below ¥120, while EUR/USD tracked in a 30pip range below $1.13.
- Alcoa kicked off the official start of the US earnings season with disappointing results. Much like the case with Yum Brands earlier this week, slowdown in China was cited as the culprit, as the aluminum giant noted it lowered its estimate for 2015 automotive production growth to +1-2% from +5-8%. China markets were less volatile going into next week's bulk release of September economic data and Q3 GDP. Economist with UBS said Q3 will likely show overall improvement, but GDP will slow to 6.6% from 7.0% in Q2. PBoC chief economist offered thoughts about the high-profile TPP deal from which China has been excluded, noting the mainland stands to lose 2.2pts in GDP by not joining the partnership.
- In Japan, BOJ Gov Kuroda defended unchanged policy at this week's meeting, expressing optimism economy will sustain moderate recovery. Separately, Fin Min Aso participated in tri-party talks with China and South Korea, discussing enhanced financial cooperation with his China counterpart Fin Min Lou.
***Equities***
US equities / ADRs:
- HELE: Reports Q2 $1.12 v $0.90e, R$369M v $345Me; +8.2% afterhours
- ANGO: Reports Q1 $0.11 v $0.11e, R$83.7M v $84.7Me; -4.3% afterhours
- AA: Reports Q3 $0.07 v $0.14e, R$5.57B v $5.67Be; -5.1% afterhours
- GPS: Reports Sept SSS -1% v -1.3%e; Guides Q3 gross margin flat q/q; -5.9% afterhours
- RT: Reports Q1 -$0.03 v +$0.01 y/y, R$279M v $281M y/y; -7.9% afterhours
- SMCI: Reports prelim Q1 $0.44-0.45 v $0.54e, R$529-530M v $542Me (prior $0.49-0.59, R$520-580M); -16.7% afterhours
- LDRH: Reports preliminary Q3 R$39.3M v $40Me; reaffirms FY15 rev outlook; -19.0% afterhours
Notable movers by sector:
- Consumer discretionary: Chow Tai Fook Jewellery Group 1929.HK +2.5% (Q2 result); Intime Department Store Group Co 1833.HK +2.1% (9-mo result); Fast Retailing Co 9983.JP -9.2% (FY14/15 result); McDonald's Holdings Co Japan 2702.JP -1.4% (Sept result)
- Financials: Evergrande Real Estate Group 3333.HK +1.3% (Sept result); China Vanke 000002.CN +0.2% (Sept result); Guangzhou R&F Properties 2777.HK +2.4% (Sept result); Seven & I Holdings 3382.JP +1.0% (H1 result)
- Industrials: Great Wall Motor 601633.CN -1.7% (Sept result); China Merchants Energy Shipping Co 601872.CN +2.7% (profit guidance); Jiangling Motors Corp 000550.CN -3.5% (Sept result); Mitsui Osk Lines 9104.JP +1.9% (H1 result speculation); Anhui Jianghuai Automobile Co 600418.CN +3.2% (Sept result)
- Technology: Universal Scientific Industrial Shanghai Co 601231.CN +10.0% (Sept result); Acer Inc 2353.TW -0.7% (Sept result); Taiwan Semiconductor Manufacturing 2330.TW +0.7% (Sept result); Advanced Semiconductor Engineering 2311.TW -1.7% (Sept result); Sony Corp 6758.JP +0.3% (acquisition)
- Materials: Sinopec Yizheng Chemical Fibre Co 600871.CN -4.2% (profit warning)
Glencore Xstrata 805.HK +0.4% (cuts zinc production capacity); Evolution Mining EVN.AU +3.2% (Q1 result)
- Energy: Beach Energy BPT.AU +13.2%, Santos STO.AU +5.3% (crude oil rises)
- Healthcare: Shandong Wohua Pharmaceutical Co 002107.CN +10.0% (9-mo result)
After Hours Summary: HELE +8.4%, ATNY +1.8%, LDRH -19.9%, SMCI -16.7%, GPS -5.9%, AA -5.1% following earnings/guidance
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings: HELE +8.4%, ATNY +1.8%
Companies trading higher in after hours in reaction to news: DAEG +93.0% (to be acquired by Open Text (OTEX) for $0.82/share, or ~$13.5 mln in cash), ONTX +7.6% (entered into a $16.5 mln share purchase agreement with Lincoln Park Capital), TRCO +5.7% (co announced it has hired Eastdil Secured to begin exploring strategic monetization alternatives for Tribune Tower and adjacent land), ASNA +5.6% (Golden Gate Capital disclosed 9% stake in 13D; believes significantly undervalued, offering meaningful upside with material downside protection), SSRI +3.1% (reported Q3 production of ~41,300 ounces of gold at Marigold mine; produced 2.6 mln ounces of silver at Pirquitas), UAL +2.0% (reported September consolidated traffic increased 1.4% and consolidated capacity increased 1.4% from prior year), ADRO +1.7% (received milestone payment from Janssen, a Johnson & Johnson (JNJ) company, for the submission of Investigational New Drug Application for ADU-214 in Lung Cancer; Phase 1 trial expected to start by year end)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings: LDRH -19.9%, SMCI -16.7%, RT -8.3%, GPS -5.9%, VSH -5.3%, AA -5.1%, ANGO -4.3%
Companies trading lower in after hours in reaction to news: SCON -4.8% (announced a proposed registered public offering of its securities; size and terms not disclosed), VSTM -4.0% (announced a reduction of its workforce by ~50% to 20 full time employees), SRCL -1.3% (entered into a settlement agreement for its ongoing qui tam lawsuit, whereby the co will pay $26.75 mln to the federal government),
Click here to read the full comment.
Portfolio Ticker Matches: SCANX, WRAPX
This email was sent to you at: sgva@bloomberg.net. To ensure delivery to your Inbox and have images displayed properly, please add update@briefing.com to your Address Book or Safe Sender List.
Briefing.com sends these emails based on the preferences you set for your account. If you no longer wish to receive this email, unsubscribe here. To edit your email preferences, click here. Visit our Privacy Policy if you have any questions.
Briefing.com offers a wide range of premium services. Free trial requests can be made via our institutional sales or customer service departments.
401 N. Michigan Avenue, Suite 2950 Chicago, IL 60611
Copyright © 2015 Briefing.com, Inc. All rights reserved.
