ECB's Constancio (Portugal): Action from the ECB has improved transmission, inflation normalization still in early stage
- ECB policies are working and the economic recovery is becoming self sustaining
Fed's Dudley: Current jobless rate may be overstating the tightness of the labor market - Q&A
- unlikely to see a repeat of the 2004-2007 rate hike cycle
- Oil prices and the USD are wild cards for the economy
-- not particularly confident on the inflation outlook right bow
Fed's Dudley (dove, FOMC voter): Timing of Fed rate hikes is data dependent; reiterates pace of tightening will depend on market reaction and the economy
- Still hope rate hikes will be possible in 2015, cannot say when normalization will happen
- Expect some market turbulence when rate lift off occurs
- Unemployment rate is at levels that will push gains in income, rate to reach 5% by the end of 2015
- Confident that inflation will trend back to 2% over time
- Economy to pick up again, mirroring performance in 2013 and 2014- Stronger USD has slowed US economic growth
- Even after the first rate hikes, policy will remain pretty easy
Gapping down
In reaction to disappointing earnings/guidance: FARO -14.8%, RCL -6.9%
Other news: ADXS -5% (files for $200 mln offering of common stock), NBG -4.2% (on going speculation on Greece default), CRIS -3.2% (files for ~17.2 mln share common stock offering by selling shareholders), YNDX -2.6% (Barron's profiles cautious view), TRCO -0.9% (announces a secondary offering of 9.24 mln shares of common stock by selling stockholder Oaktree Capital Management)
Analyst comments: BBVA -1.6% (removed from Conviction Buy list at Goldman), CMRE -1.3% (downgraded to Underperform from Neutral at BofA/Merrill), LULU -0.7% (downgraded to Underperform from Outperform at Credit Agricole), KORS -0.7% (downgraded to Neutral from Buy at Mizuho; tgt $70 from $80), CL -0.6% (downgraded to Sell from Neutral at Goldman), SYT -0.6% (downgraded to Hold at Kepler), MDVN -0.5% (downgraded to Neutral from Outperform at Credit Suisse
)
In reaction to disappointing earnings/guidance: FARO -14.8%, RCL -6.9%
Other news: ADXS -5% (files for $200 mln offering of common stock), NBG -4.2% (on going speculation on Greece default), CRIS -3.2% (files for ~17.2 mln share common stock offering by selling shareholders), YNDX -2.6% (Barron's profiles cautious view), TRCO -0.9% (announces a secondary offering of 9.24 mln shares of common stock by selling stockholder Oaktree Capital Management)
Analyst comments: BBVA -1.6% (removed from Conviction Buy list at Goldman), CMRE -1.3% (downgraded to Underperform from Neutral at BofA/Merrill), LULU -0.7% (downgraded to Underperform from Outperform at Credit Agricole), KORS -0.7% (downgraded to Neutral from Buy at Mizuho; tgt $70 from $80), CL -0.6% (downgraded to Sell from Neutral at Goldman), SYT -0.6% (downgraded to Hold at Kepler), MDVN -0.5% (downgraded to Neutral from Outperform at Credit Suisse
)
Gapping up
In reaction to strong earnings/guidance: HAS +8.2%, SVA +6.4%, CHKP +2.4%, MS +2%, LII +1.6%, HAL +0.4%
M&A news: PLD +2.6% (signs definitive agreements to acquire $5.9 bln portfolio from KTR Capital Partners; also rpted earnings)
Select metals/mining stocks trading higher: GFI +3%, FSM +2.9%, HMY +2.6%, RIO +0.8%, BHP +0.5%
Other news: GENE +25.8% (announces additional breast health centres to begin offering BREVAGenplus), PVCT +11.1% (Provectus Pharma and Pfizer (PFE) announce receipt of Patent Allowance for Use of PV-10 for the treatment of cancer), HQCL +8.8% (announces over 1.5 GW solar module supply agreement to power NextEra Energy Resources' (NEE) continued solar investments in the U.S.), CYCC +6.9% (announces pre-clinical data from its Second-Generation CDK2/9 inhibitor), ONCY +6.4% (announces that a series of poster presentations by its research collaborators will be made at the 2015 AACR), VPCO +6.3% (files for ~6.2 mln share common stock offering by selling shareholders), ROVI +6.3% (announces it has renewed its patent license and interactive program guide product agreement with Charter Communications), NBS +4.6% (announces the expansion of manufacturing services under an existing Services Agreement between its subsidiary and Kite Pharma (KITE)), FNRG +4.5% (founder and majority shareholder Richard St-Julien voluntarily resigned as the Company's Executive Chairman of the Board, and from all other positions he held with the company; also issues business update; divested its interest in Trans Pacific Energy and its TCS business), CLDX +3.7% (announces preclinical results that further support varlilumab's expansion into combination studies with PD-1 inhibitors), URI +2.1% (Barron's profiles positive view), TASR +2.1% (announces that the Ontario Provincial Police has purchased 1000 Taser X2 smart weapons), PBR +1.7% (announced the concluded negotiations on various loan contracts), HZNP +1.6% (announces proposed private offering of senior notes and intention to enter into new term loan facility), ABBV +1.5% (extends exchange offer to acquire Pharmacyclics (PCYC) to May 1, 2015), CHRS +1.4% (obtained positive results of a repeat Phase 1 pharmacokinetic bioequivalence study for CHS-0214, its etanercept biosimilar candidate), MAT +1.4% (in sympathy with HAS earnings), ING +1.3% (still checking), COST +1.2% (announces reauthorization of $4 bln stock repurchase program; increases quarterly dividend 12.7% to $0.40 from $0.355 per share), MRK +1% (announces submission of supplemental Biologics License Application to FDA for KEYTRUDA in advanced non-small cell lung cancer), MNTA +0.9% (presents new data from studies conducted as part of the ANDA submission for once daily Glatopa)
Analyst comments: ADRO +9% (initiated with a Buy at ROTH Capital; tgt $74), SEDG +3.4% (initiated with a Buy at Goldman; initiated with a Buy at Deutsche Bank), CLLS +3.1% (initiated with a Overweight at Piper Jaffray), CUBE +2.9% (upgraded to Buy from Hold at Evercore ISI), MTG +2.7% (upgraded to Neutral from Underperform at Credit Suisse), BCRX +2.7% (upgraded to Neutral from Underperform at BofA/Merrill), SPLK +1.7% (initiated with a Buy at Citigroup), JBHT +1.7% (upgraded to Buy from Underperform at BofA/Merrill), CPLP +1.7% (upgraded to Buy from Neutral at BofA/Merrill), GIS +1.6% (upgraded to Neutral from Sell at Goldman), HSBC +1.5% (added to Conviction Buy List at Goldman), FB +1.1% (favorable commentary at Oppenheimer),UN +0.5% (upgraded to Outperform from Sector Perform at RBC Capital Mkts), JNJ +0.5% (added to Short-Term Buy List at Deutsche Bank
)
In reaction to strong earnings/guidance: HAS +8.2%, SVA +6.4%, CHKP +2.4%, MS +2%, LII +1.6%, HAL +0.4%
M&A news: PLD +2.6% (signs definitive agreements to acquire $5.9 bln portfolio from KTR Capital Partners; also rpted earnings)
Select metals/mining stocks trading higher: GFI +3%, FSM +2.9%, HMY +2.6%, RIO +0.8%, BHP +0.5%
Other news: GENE +25.8% (announces additional breast health centres to begin offering BREVAGenplus), PVCT +11.1% (Provectus Pharma and Pfizer (PFE) announce receipt of Patent Allowance for Use of PV-10 for the treatment of cancer), HQCL +8.8% (announces over 1.5 GW solar module supply agreement to power NextEra Energy Resources' (NEE) continued solar investments in the U.S.), CYCC +6.9% (announces pre-clinical data from its Second-Generation CDK2/9 inhibitor), ONCY +6.4% (announces that a series of poster presentations by its research collaborators will be made at the 2015 AACR), VPCO +6.3% (files for ~6.2 mln share common stock offering by selling shareholders), ROVI +6.3% (announces it has renewed its patent license and interactive program guide product agreement with Charter Communications), NBS +4.6% (announces the expansion of manufacturing services under an existing Services Agreement between its subsidiary and Kite Pharma (KITE)), FNRG +4.5% (founder and majority shareholder Richard St-Julien voluntarily resigned as the Company's Executive Chairman of the Board, and from all other positions he held with the company; also issues business update; divested its interest in Trans Pacific Energy and its TCS business), CLDX +3.7% (announces preclinical results that further support varlilumab's expansion into combination studies with PD-1 inhibitors), URI +2.1% (Barron's profiles positive view), TASR +2.1% (announces that the Ontario Provincial Police has purchased 1000 Taser X2 smart weapons), PBR +1.7% (announced the concluded negotiations on various loan contracts), HZNP +1.6% (announces proposed private offering of senior notes and intention to enter into new term loan facility), ABBV +1.5% (extends exchange offer to acquire Pharmacyclics (PCYC) to May 1, 2015), CHRS +1.4% (obtained positive results of a repeat Phase 1 pharmacokinetic bioequivalence study for CHS-0214, its etanercept biosimilar candidate), MAT +1.4% (in sympathy with HAS earnings), ING +1.3% (still checking), COST +1.2% (announces reauthorization of $4 bln stock repurchase program; increases quarterly dividend 12.7% to $0.40 from $0.355 per share), MRK +1% (announces submission of supplemental Biologics License Application to FDA for KEYTRUDA in advanced non-small cell lung cancer), MNTA +0.9% (presents new data from studies conducted as part of the ANDA submission for once daily Glatopa)
Analyst comments: ADRO +9% (initiated with a Buy at ROTH Capital; tgt $74), SEDG +3.4% (initiated with a Buy at Goldman; initiated with a Buy at Deutsche Bank), CLLS +3.1% (initiated with a Overweight at Piper Jaffray), CUBE +2.9% (upgraded to Buy from Hold at Evercore ISI), MTG +2.7% (upgraded to Neutral from Underperform at Credit Suisse), BCRX +2.7% (upgraded to Neutral from Underperform at BofA/Merrill), SPLK +1.7% (initiated with a Buy at Citigroup), JBHT +1.7% (upgraded to Buy from Underperform at BofA/Merrill), CPLP +1.7% (upgraded to Buy from Neutral at BofA/Merrill), GIS +1.6% (upgraded to Neutral from Sell at Goldman), HSBC +1.5% (added to Conviction Buy List at Goldman), FB +1.1% (favorable commentary at Oppenheimer),UN +0.5% (upgraded to Outperform from Sector Perform at RBC Capital Mkts), JNJ +0.5% (added to Short-Term Buy List at Deutsche Bank
)
Royal Caribbean and peer Carnival (CCL) moving lower following RCL's earnings, lowered guidance for 2015
-
RCL -5.8% in pre-mkt trading; CCL -2.4%.
- CCL earnings are expected mid-June.
Lennox Intl misses by $0.09, misses on revs; reaffirms FY15 EPS guidance; co says some Commercial segment equipment sales got pushed from Q1 into Q2-Q4
Reports Q1 (Mar) earnings of $0.37 per share, excluding non-recurring items, $0.09 worse than the Capital IQ Consensus Estimate of $0.46; revenues fell 1.4% year/year to $685.8 mln vs the $714.8 mln consensus. Co reaffirms guidance for FY15, sees EPS of $5.20-5.60, excluding non-recurring items, vs. $5.39 Capital IQ Consensus Estimate.
- "We continued to see strong momentum in our Residential business in [Q1], and our Refrigeration business was as expected...However, our Commercial business saw the timing of specific national account equipment business shift beyond the first quarter into the second through fourth quarters of this year. While Commercial national account business was down in the first quarter, our backlog is up double digits from a year ago, and we continue to expect solid growth for 2015 overall."
Google Said to Have Negotiated Deal to Buy Tesla in Early 2013
2015-04-20 12:00:13.213 GMT
By Ashlee Vance
(Bloomberg Business) -- This story is excerpted and adapted
from Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic
Future, due out May 19 from Ecco, an imprint of HarperCollins.
On May 8, 2013, Tesla Motors shocked just about everyone by
posting its first-ever quarterly profit, reporting higher-than-
expected demand for its Model S electric sedan. That moment
marked the beginning of a turnaround for Elon Musk’s tumultuous
automaker. The next year would see the Model S win most of the
automotive industry’s major awards and Tesla’s share price rise
roughly fivefold, to more than $200. The 2013 profit
announcement was fortuitous. Just weeks before, Tesla had been
on the verge of bankruptcy.
Earlier in 2013 the company was struggling to turn
preorders of its vehicles into actual sales. As Musk put his
staff on crisis footing to save Tesla, he also began negotiating
a deal to sell the company to Google through his friend Larry
Page, the search giant’s co-founder and chief executive officer,
according to two people with direct knowledge of the deal. Tesla
spokesman Ricardo Reyes and Google spokeswoman Rachel Whetstone
declined to comment. “I don’t want to speculate on rumors,” Page
said when I asked him if Google had considered buying Tesla,
adding that a “car company is pretty far from what Google
knows.”
Although Tesla spent several years designing and building
its flagship Model S, the car was still missing some features
when it went on sale in June 2012. Its safety elements,
software, and interior room were better than those of most
luxury cars, but it didn’t offer the parking sensors and radar-
assisted cruise control of rivals like BMW and Mercedes-Benz.
Glitches with the 2012 Model S door handle irked early buyers,
as did some aesthetic choices such as the car’s sun visors,
which had unsightly seams.
A big part of the problem was a lack of resources, says
former Tesla engineer Ali Javidan. “It was either hire a team of
50 people right away to make one of these things happen, or
implement things as best and as fast as you could.” Musk chose
the latter, Javidan says. Tesla also strugged to get top-rate
suppliers to take it seriously, says chief designer Franz von
Holzhausen. With the sun visors, he says, “We ended up having to
go to a third-rate supplier and then work on fixing the
situation after the car had already started shipping.”
“I don’t care what job you were doing. Your new job is
delivering cars.”
Tesla’s first customers were proto-typical early adopters
who wanted a computer on wheels. By the end of 2012, many were
grumbling about the bugs still to be worked out, and sales
slowed to a trickle. “The word of mouth on the car sucked,” Musk
says. By Valentine’s Day 2013, Tesla was heading toward a death
spiral of missed sales targets and falling shares. The company’s
executives had also hidden the severity of the problem from the
intensely demanding Musk. When he found out, he pulled staff
from every department — engineering, design, finance, HR — into
a meeting and ordered them to call people who’d reserved Teslas
and close those sales. “If we don’t deliver these cars, we are
f---ed,” Musk told the employees, according to a person at the
meeting. “So I don’t care what job you were doing. Your new job
is delivering cars.”
Musk fired senior executives, promoted hungry junior
employees, and assigned former Daimler executive Jerome Guillen
to fix Tesla’s repair service and get its glitchy cars back on
the road. He also proposed what eventually became his public
guarantee of the resale price of the Model S: Unsatisfied buyers
would get their money back from Musk personally if they couldn’t
sell their car at a price comparable to that of another luxury
model.
In the first week of March 2013, Musk reached out to Page,
say the two people familiar with the talks. By that point, so
many customers were deferring orders that Musk had quietly shut
down Tesla’s factory. Considering his straits, Musk drove a hard
bargain. He proposed that Google buy Tesla outright — with a
healthy premium, the company would have cost about $6 billion at
the time — and pony up another $5 billion in capital for factory
expansions. He also wanted guarantees that Google wouldn’t break
up or shut down his company before it produced a third-
generation electric car aimed at the mainstream auto market. He
insisted that Page let him run a Google-owned Tesla for eight
years, or until it began pumping out such a car. Page accepted
the overall proposal and shook on the deal.
In the weeks that followed, Musk, Page, and Google’s
lawyers negotiated the specific terms of the deal. There were a
couple of sticking points around Musk’s financial demands that
complicated the talks and kept the two sides apart.
While the two companies were negotiating, Tesla’s frenzy of
sales calls began to pay off, and a lot more people started
buying the Model S. With its quarter drawing to a close and two
weeks worth of cash in its coffers, Tesla began selling
thousands of cars, enough to post an $11 million quarterly
profit on $562 million in revenue.
Within two weeks of that announcement, the company’s shares
had doubled, and Tesla had repaid its $465 million loan from the
U.S. Department of Energy early, with interest. Musk broke off
his negotiations with Google. He no longer needed a savior.Read
this next:
* Will Tesla Ever Make Money?
* Why Everybody Loves Tesla
* Want Elon Musk to Hire You at Tesla? Work for Apple
To contact the author on this story:
Ashlee Vance at avance3@bloomberg.net
To contact the editor on this story:
Jeff Muskus at jmuskus@bloomberg.net
2015-04-20 12:00:13.213 GMT
By Ashlee Vance
(Bloomberg Business) -- This story is excerpted and adapted
from Elon Musk: Tesla, SpaceX, and the Quest for a Fantastic
Future, due out May 19 from Ecco, an imprint of HarperCollins.
On May 8, 2013, Tesla Motors shocked just about everyone by
posting its first-ever quarterly profit, reporting higher-than-
expected demand for its Model S electric sedan. That moment
marked the beginning of a turnaround for Elon Musk’s tumultuous
automaker. The next year would see the Model S win most of the
automotive industry’s major awards and Tesla’s share price rise
roughly fivefold, to more than $200. The 2013 profit
announcement was fortuitous. Just weeks before, Tesla had been
on the verge of bankruptcy.
Earlier in 2013 the company was struggling to turn
preorders of its vehicles into actual sales. As Musk put his
staff on crisis footing to save Tesla, he also began negotiating
a deal to sell the company to Google through his friend Larry
Page, the search giant’s co-founder and chief executive officer,
according to two people with direct knowledge of the deal. Tesla
spokesman Ricardo Reyes and Google spokeswoman Rachel Whetstone
declined to comment. “I don’t want to speculate on rumors,” Page
said when I asked him if Google had considered buying Tesla,
adding that a “car company is pretty far from what Google
knows.”
Although Tesla spent several years designing and building
its flagship Model S, the car was still missing some features
when it went on sale in June 2012. Its safety elements,
software, and interior room were better than those of most
luxury cars, but it didn’t offer the parking sensors and radar-
assisted cruise control of rivals like BMW and Mercedes-Benz.
Glitches with the 2012 Model S door handle irked early buyers,
as did some aesthetic choices such as the car’s sun visors,
which had unsightly seams.
A big part of the problem was a lack of resources, says
former Tesla engineer Ali Javidan. “It was either hire a team of
50 people right away to make one of these things happen, or
implement things as best and as fast as you could.” Musk chose
the latter, Javidan says. Tesla also strugged to get top-rate
suppliers to take it seriously, says chief designer Franz von
Holzhausen. With the sun visors, he says, “We ended up having to
go to a third-rate supplier and then work on fixing the
situation after the car had already started shipping.”
“I don’t care what job you were doing. Your new job is
delivering cars.”
Tesla’s first customers were proto-typical early adopters
who wanted a computer on wheels. By the end of 2012, many were
grumbling about the bugs still to be worked out, and sales
slowed to a trickle. “The word of mouth on the car sucked,” Musk
says. By Valentine’s Day 2013, Tesla was heading toward a death
spiral of missed sales targets and falling shares. The company’s
executives had also hidden the severity of the problem from the
intensely demanding Musk. When he found out, he pulled staff
from every department — engineering, design, finance, HR — into
a meeting and ordered them to call people who’d reserved Teslas
and close those sales. “If we don’t deliver these cars, we are
f---ed,” Musk told the employees, according to a person at the
meeting. “So I don’t care what job you were doing. Your new job
is delivering cars.”
Musk fired senior executives, promoted hungry junior
employees, and assigned former Daimler executive Jerome Guillen
to fix Tesla’s repair service and get its glitchy cars back on
the road. He also proposed what eventually became his public
guarantee of the resale price of the Model S: Unsatisfied buyers
would get their money back from Musk personally if they couldn’t
sell their car at a price comparable to that of another luxury
model.
In the first week of March 2013, Musk reached out to Page,
say the two people familiar with the talks. By that point, so
many customers were deferring orders that Musk had quietly shut
down Tesla’s factory. Considering his straits, Musk drove a hard
bargain. He proposed that Google buy Tesla outright — with a
healthy premium, the company would have cost about $6 billion at
the time — and pony up another $5 billion in capital for factory
expansions. He also wanted guarantees that Google wouldn’t break
up or shut down his company before it produced a third-
generation electric car aimed at the mainstream auto market. He
insisted that Page let him run a Google-owned Tesla for eight
years, or until it began pumping out such a car. Page accepted
the overall proposal and shook on the deal.
In the weeks that followed, Musk, Page, and Google’s
lawyers negotiated the specific terms of the deal. There were a
couple of sticking points around Musk’s financial demands that
complicated the talks and kept the two sides apart.
While the two companies were negotiating, Tesla’s frenzy of
sales calls began to pay off, and a lot more people started
buying the Model S. With its quarter drawing to a close and two
weeks worth of cash in its coffers, Tesla began selling
thousands of cars, enough to post an $11 million quarterly
profit on $562 million in revenue.
Within two weeks of that announcement, the company’s shares
had doubled, and Tesla had repaid its $465 million loan from the
U.S. Department of Energy early, with interest. Musk broke off
his negotiations with Google. He no longer needed a savior.Read
this next:
* Will Tesla Ever Make Money?
* Why Everybody Loves Tesla
* Want Elon Musk to Hire You at Tesla? Work for Apple
To contact the author on this story:
Ashlee Vance at avance3@bloomberg.net
To contact the editor on this story:
Jeff Muskus at jmuskus@bloomberg.net
BFW 04/20 12:01 *KAISA DEFAULTS AFTER CHINA DEVELOPER SAYS CAN’T PAY DOLLAR DEBT
*KAISA DEFAULTS AFTER CHINA DEVELOPER SAYS CAN’T PAY DOLLAR DEBT
2015-04-20 12:02:03.430 GMT
--DARREN BOEY
-0- Apr/20/2015 12:02 GMT
2015-04-20 12:02:03.430 GMT
--DARREN BOEY
-0- Apr/20/2015 12:02 GMT
Morgan Stanley beats by $0.06, beats on revs
Reports Q1 (Mar) adj. earnings from continuing operations of $0.85 per share, excluding a $0.29 tax benefit, $0.06 better than the Capital IQ Consensus of $0.79; GAAP revenues rose 10.1% year/year to $9.91 bln vs the $9.19 bln consensus.
- Institutional Securities net revenues excluding DVA were $5.3 billion. Revenues for the quarter reflect strong performance in Equity sales and trading across products and regions, improved performance in Fixed Income and Commodities sales and trading on higher levels of client activity and solid results in Investment Banking.
- Wealth Management net revenues were $3.8 billion. The pre-tax margin was 22%.6 Fee based asset flows for the quarter were $13.3 billion, with total client assets of $2.0 trillion at quarter end.
- Investment Management reported net revenues of $669 million with assets under management or supervision of $406 billion.
- The annualized return on average common equity from continuing operations was 14.2% in the current quarter, or 10.1% excluding DVA and the net discrete tax benefit