>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: FUL -6.9%, WOR -3.6%, ACN -2%

Select fan favorites trading lower with weakness in US futures: FB -1.1%, AMZN -0.9%, AAPL -0.9%, TSLA -0.9%, TWTR -0.9%, NFLX -0.8%

Select financial related names showing weakness: HSBC -1.7%, GS -1.1%, C -1%, ING -0.9%, BAC -0.9%, JPM -0.7%, DB -0.7%

Select metals/mining stocks trading lower: MT -2.1%, VALE -2%, FCX -1.2%, BHP -1.2%, X -0.5%

Select oil/gas related names showing early weakness: PKD -4.1%, PBR -3.2%, BHI -1.4%, BP -1.2%, RDS.A -0.5%

Other news: WGBS -7.7% (co filed amended S-1 containing info on previously announced $34.5 mln mixed securities offering), VNDA -3.2% (announces that a Fanapt patent is now listed in the FDA's Orange Book), JOY -2.2% (in sympathy with CAT), ALV -2.1% (still checking), BABA -1.3% (cont weakness), DORM -1.1% (appoints Mathias Barton as CEO, succeeding Steven Berman, who will assumed the role of Executive Chairman), SBRA -1.1% (reports an update on the tenant of the Forest Park Medical Center-Frisco hospital), DE -1% (in sympathy with CAT)

Analyst comments: CAT -3.1% (initiated with a Sell at Axiom Capital; tgt $28
)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance: SCS +4.9%

Other news: ARWR +36.6% (reports peak reduction in HBsAg of up to 99% after a single dose with Hepatitis B candidate ARC-520), CNAT +23.9% (announces top-line results from multicenter Phase 2 Portal Hypertension clinical trial in patients with liver cirrhosis), KERX +17.1% (announces the European Commission has approved Fexeric), PHMD +16% (still checking), XCO+9% (to hold a special meeting of shareholder on November 16; among proposals, shareholders will vote to authorize the Board to commence a reverse split), AMRS +8.3% (Total S.A. (TOT) discloses a 41.4% stake, raised from August 6's stake of 33.98%), ACI +8.3% (announces additional extension of private debt exchange offers and support agreement), SNCR +4.9% (reiterated that it has a multi-year contract in place with Verizon Wireless (VZ), focused primarily on the company's Personal Cloud offering and related services; no change in the agreement between Synchronoss and Verizon), MPLX +4.9% (co's Pipe Line unit amended its existing Patoka, Illinois tank farm Storage Services Agreement with Marathon Petroleum (MPC) to increase the shell capacity), ABGB +4.3% (to convene Extraordinary General Shareholders' Meeting to approve a capital increase of at least EUR 650 mln; Chairman Felipe Benjumea steps down), ALIM +3.5% (announces ILUVIEN Study Results), BSQR +1.0% (entered into a two-year, $12 million credit agreement)

Analyst comments: N/
A

(SG) A.Edwards Has Buzz Lightyear joined the Fed? “To minus infinity and bey

Has Buzz Lightyear joined the Fed? “To minus infinity and beyond”!

A week ahead of the Fed’s last meeting I enjoyed afternoon tea with my fellow strategist Bob Janjuah of Nomura (aka Bob the Bear). When we occasionally meet up, we lie back and look up for a bit of clear blue sky thinking – okay, I know it’s London and the sky is usually overcast, but that sort of fits in with our bear view of the world! Among other things we wondered why no-one else entertains the possibility that rates might bottom at minus 5% Fed Funds in the coming downturn.

The next US recession will probably arrive a lot sooner than most investors expect and will likely see more desperate monetary experimentation from the Fed. Bob and I thought that this time we would see deeply negative interest rates in the US (and Europe). Sweden has led the way, dipping their toe below the water line with their current -0.35% policy rates but there will be more, much more along these lines. For if -0.35% is possible, why not - 3.5% or less? It goes without saying that deeply negative interest rates would be accompanied by a massively expanded QE4 in the US. The last seven years of exploding central bank balance sheets will seem like Bundesbank monetary austerity compared to what is to come.

FT : Magners’ maker C&C held talks with Carlsberg to buy UK division


The Irish maker of Magners cider has held talks with Carlsberg, the world’s fourth-largest brewer by volume, about a deal to acquire its UK business as recently as last month.
The discussions between C&C Group and Carlsberg took place over the summer, with advisers working with both companies, according to people familiar with the matter. However, the talks stopped towards the end of August and it is unclear whether they will be restarted, these people said.

C&C has been searching for deals that will help it expand outside its main markets of Ireland and Scotland, which account for more than 80 per cent of its profits, according to analysts. The company was rebuffed last year by tavern-chain operator Spirit Pub, which eventually agreed to be acquired by its larger rival Greene King in a £774m deal.
Carlsberg has a 14 per cent market share in the UK and operates its own distribution network for a portfolio brands, including the fast-growing cider Somersby. But the company has had a torrid time in Russia, where its big bet to become the country’s largest brewer with 40 per cent of the market, turned sour after a rise in taxation and a weaker economy due to falling oil prices and the fallout from Russia’s annexation of Crimea.
This has put pressure on the company’s finances and Cees ’t Hart, the former head of a Dutch dairy company who took over at Carlsberg in June, said last month that the brewer had a “heightened sense of urgency” over cutting costs.
The resignation in June of Jørgen Buhl Rasmussen, who had led the business for seven years, and his replacement by Mr ’t Hart is thought to have been a factor in the discussions being put on hold.
The talks come against the backdrop of further consolidation in the brewing sector. Anheuser-Busch InBev, the world’s largest brewer, is exploring a takeover of the industry number two SABMiller, in a deal that would create a company responsible for one in three beers produced globally.
Despite its troubles, Carlsberg shares have risen 6.5 per cent since the start of the year, outpacing both AB InBev and SABMiller, giving the company a market value of DKr78.7bn ($11.8bn). C&C shares have fallen 3.5 per cent, giving it a market capitalisation of €1.19bn
After several years of exceptionally strong growth in the cider sector, boosted by fruit-flavoured variants, sales have ground to a halt. Cider sales in supermarkets fell 0.6 per cent in the year to the end of March 2015, according to Kantar Worldpanel. But total UK cider sales amount to £735m, up strongly compared with £279m in 2007.
C&C and Carlsberg declined to comment.

>>> Audi's R&D boss, Porsche engine chief to quit -Bild - RTRS

Audi's R&D boss, Porsche engine chief to quit -Bild - RTRS


24-SEP-2015 13:39:06

BERLIN, Sept 24 (Reuters) - Two of Volkswagen VOWG_p.DE group's highest-ranking engineers will be forced to quit as the German carmaker is pushing steps to clear up the diesel emissions scandal, Bild reported on Thursday, citing unnamed company sources.

Audi's R&D boss Ulrich Hackenberg, a long-time VW brand executive and Porsche's engine chief Wolfgang Hatz will be dismissed at a meeting of the supervisory board on Friday, the newspaper said.

VW and Porsche declined comment while Audi couldn't be reached for comment

>>> DJ Volkswagen Scandal Could Spell Trouble for Staffers -- Market Talk

DJ Volkswagen Scandal Could Spell Trouble for Staffers -- Market Talk
1114 GMT The scandal at Volkswagen could spell trouble for European staffing companies if the crisis widens to the entire automotive industry, ING says. Switzerland's Adecco, for example, generates nearly 10% of sales from the sector, while Dutch peer Randstad gets 7%, the bank says. Although the companies' exposure to Volkswagen is negligible, the impact would be more serious if the scandal engulfs other car makers. "If the fire spreads...there might be a few [percentage points] of revenue growth at stake," ING says

>>> US Early premarket gappers

Early premarket gappers

Gapping up: CNAT +29.3%, PHMD +11.5%, SNCR +6.1%, MPLX +4.9%, SCS +4.9%, AKS +2.5%, GDX +1.4%, WFT +1%, ABX +1%, RIG +1%, BSQR +0.8%

Gapping down: WGBS -7.7%, FUL -6.9%, WOR -3.6%, PBR -3.5%, VNDA -3.2%, CAT -2.7%, JKS -2.2%, STM -1.7%, ALV -1.5%, UN -1.5%, NOK -1.4%, DORM -1.1%, SBRA -1.1%, BABA -1%, HSBC -1%, JPM -1%, FB -1%, ING -0.9%, NFLX -0.9%, SUNE -0.9%, AMZN -0.9%, BAC -0.9%, FCX -0.8%, AAPL -0.8%, DB -0.8%, C -0.7%, GS -0.6%

>>> Accenture beats by $0.03, beats on revs; guides Q1 revs below consensus; gui

Accenture beats by $0.03, beats on revs; guides Q1 revs below consensus; guides FY16 ~in-line; raises dividend 8%; adds $5 bln to buyback

  • Reports Q4 (Aug) earnings of $1.15 per share, $0.03 better than the Capital IQ Consensus of $1.12; revenues rose 1.4% year/year to $7.89 bln vs the $7.69 bln consensus, an increase of 1 percent in U.S. dollars and 12 percent in local currency and above the company's guided range of $7.45 billion to $7.70 billion.
    • New bookings for the fourth quarter were $8.8 billion and reflect a negative 13 percent foreign-exchange impact compared with new bookings in the fourth quarter of fiscal 2014. Consulting new bookings were $4.1 billion, or 46 percent of total new bookings. Outsourcing new bookings were $4.7 billion, or 54 percent of total new bookings.
  • Co issues downside guidance for Q1, sees Q1 revs of $7.70-7.95 bln vs. $8.12 bln Capital IQ Consensus Estimate.
  • Co issues guidance for FY16, sees EPS of $5.09-5.24 vs. $5.22 Capital IQ Consensus Estimate; sees FY16 revs +1-4% (+5-8% local currency) to ~$31.36-32.29 bln vs. $32.6 bln Capital IQ Consensus Estimate.
    • Accenture expects operating margin for the full fiscal year to be in the range of 14.6 percent to 14.8 percent, an expansion of 10 to 30 basis points from the adjusted operating margin of 14.5 percent in fiscal 2015.
  • Accenture's Board of Directors has declared a semi-annual cash dividend of $1.10 per share, an increase of $0.08 per share, or 8 percent, over its previous semi-annual dividend, declared in March.
  • The Board also approved $5 billion in additional share repurchase authority.