>>> US Gapping Up

Gapping up In reaction to strong earnings/guidance: PIR +7%, OPGN +1.8%

M&A news: LMNS +13% (will be acquired by XIO Group for $14.00/share in cash ), SYT +2.7% (cont M&A spec), AXS +2.6% (Arch Capital (ACGL) considering $65/share bid for AXS, according to FT), QIHU +1.6% (Bloomberg real M&A column discusses that Chairman's buyout proposal of $77/share might be the best offer the company will receive), GM +0.7% (General Motors and Fiat (FCAU) have hired bankers to advise on merger related considerations, according to Reuters)

Select metals/mining stocks trading higher (Gold and Silver futures ~+2% in pre-mkt): BHP +2.2%, AG +1.9%, RIO +1.8%, AUY +1.8%, GOLD +1.7%, GG +1.6%, SLW +1.6%, AEM +1.4%, GFI +1.3%, NEM +1.2%, FCX +1.2%, MT +1.2%, SLV +1%, PAAS +0.9%, VALE +0.9%

Select oil/gas related names showing strength (Crude ~+1% in pre-mkt): CNX +2.4%, SNP +0.9%, RIG +0.8%, CHK +0.8%, SDRL +0.8%

Other news: JOEZ +24.5% (cont strength), FREE +15% (cont strength), CRDS +14.4% (Announces Patent Litigation Update Including Results of Markman Hearing; A Federal Court in the Western District of Texas entered an order in which the Court determined the meaning of 17 disputed claim terms in the patents-in-suit), RDUS +6.3% (reports Positive top-line data from ACTIVExtend Trial including combined 25 month results), BMRN +6% (announces positive results of a Phase 2 proof-of-concept and dose finding study of BMN 111, an analog of C-type Natriuretic Peptide, in children with achondroplasia), ERN +5.6% (Commences Production From the Oyo-7 Well; Production from Oyo field expected to double), PARN +2.9% (announces positive top-line pivotal trial results for its Zydax therapeutic), NBG +2.7% (cont volatility in Greece negotiations), NOR +2.4% (to evaluate strategic alternatives; Board of Directors engages Morgan Stanley; co also suspends dividend and seeks reverse stock split), DEO +2% (still checking), ADVS +1.3% (reports U.S. Department of Justice Clears SS&C's (SSNC) Acquisition of Advent), ALKS +0.8% (favorable commentary on Thursday's Mad Money)

Analyst comments: DGLY +5.5% (initiated with a Buy at H.C. Wainwright (Rodman & Renshaw); tgt $24), JNPR +1.3% (upgraded to Outperform from Neutral at Wedbush), SAN +1.1% (upgraded to Overweight from Neutral at JP Morgan), ALK +0.8% (upgraded to Outperform from Neutral at Credit Suisse), MRVL +0.7% (upgraded to Neutral from Sell at Goldman -- Removed from Americas Sell List), SNH +0.5% (upgraded to Neutral from Sell at UBS)

European Commission and ECB processed draft declaration on debt relief

European Commission and ECB processed draft declaration on debt relief

BRUSSELS - RESPONSE. While the finance ministers of the Eurozone have gathered in Luxembourg for another Eurogroup that the expectations of any progress in the Greek issue is very limited, discussions focus on who and when there could be a further debate which will bring the solution the stalemate that has been created in recent months.

According to a senior European official said the scenario is considered and the more likely this time is to convene an emergency summit of eurozone members Thursday evening (25.06) after the end of the deliberations of the Summit scheduled on that day and has very heavy agenda. The aim is the Greek issue not overshadow this way the other serious issues to discuss as the Grexit and immigration policy. At the same time it will have spent one week from today's Eurogroup meeting without another thus putting further pressure on the Greek side.

According to him a high-ranking European official, this time from European Commission and European Central Bank edit text that refers to the debt issue in the event of agreement. A re-statement for debt relief won the Greek side of the Eurogroup of November 2012 when he was the Minister C. Stournaras.

At the same time, according to the same source, the imposition of capital controls on banks will be only if the output rise dangerously in the coming days.

>>> SXAP - Sector Trading on support - 14.5% correction since highs

SXAP still +18.75 YTD, 14.5% from highs, trading on low support of the range..see some sellers for tje last few days...China slowdow on the car sector has been a catalyst...still a gap open (589.1/591.3)...200d ma is 6.4% lower...same level that 50% retracememnt from 2014 lows to 2015 highs...1% of underperfomance to go versus SX5E to trade on lowest level of the year relative to SX5E.

(MS) Volkswagen : Risks before Rewards ?

VW Group sales continue to deteriorate, as China joins the list of slowing markets. European recovery seems fragile at best. With VW on 5-year sector relative lows, some may believe the potential for a restructuring story is improving. We think improvement remains some time away. Remain EW.

VW Group's weakest sales performance since 2012: VW Group reported global sales at 858k units, down 2.6% in May yoy. The VW brand's downturn continued, with sales down 5.9% YoY with a 31.6k decline. To make matters worse, Audi, Skoda and VW commercial vehicles showed their worst performance in recent times. Group China sales were at 300k units, down 6.3% YoY and continued to decline (-5.6% yoy last month) for the third consecutive month, as China market growth has slowed.

Audi down in China in May: Audi registered 10% growth in the US, which was offset by flat Europe sales and a 2% decline in China. This is the first yoy China decline reported by Audi for many years. Audi YTD sales are up 4.3% yoy at 7.45m units, with China accounting for just 25% of Audi's global growth vs. more than 50% a year ago. Audi lags both BMW and Mercedes in yoy growth in FY15 YTD. Of the other brands, Porsche was up 25% yoy, and Skoda up only 1.4% yoy. We have slightly lowered our China growth and margin assumptions in this report.

VW to restructure its brand management: Automotive News (June 17) has reported that VW management is planning to change its group structure into four brand groupings with individual CEOs, making room for new management arrivals from BMW and Daimler, and trying to improve management flexibility and integration between those brands. We see
potential here mainly in terms of capital efficiency, rather than absolute EBIT upside, and we would warn that any capital efficiency actions would have some offsetting negative impact on growth. Although we recognise the potential for value creation from any capital structure changes, we do not believe these are likely.