>>> ECB announces operational details of asset-backed securities and covered bon


2 October 2014 - ECB announces operational details of asset-backed securities and covered bond purchase programmes
  • Programmes will last at least two years
  • Will enhance transmission of monetary policy, support provision of credit to the euro area economy and, as a result, provide further monetary policy accommodation
  • Eurosystem collateral framework is guiding principle for eligibility of assets for purchase
  • Asset purchases to start in fourth quarter 2014, starting with covered bonds in second-half of October
The Governing Council of the European Central Bank (ECB) today agreed key details regarding the operation of its new programmes to buy simple and transparent asset-backed securities (ABSs) and a broad portfolio of euro-denominated covered bonds. Together with the targeted longer-term refinancing operations, the purchase programmes will further enhance the transmission of monetary policy. They will facilitate credit provision to the euro area economy, generate positive spill-overs to other markets and, as a result, ease the ECB’s monetary policy stance. These measures will have a sizeable impact on the Eurosystem’s balance sheet and will contribute to a return of inflation rates to levels closer to 2%.
The Eurosystem’s collateral framework – the rules that lay out which assets are acceptable as collateral for monetary policy credit operations – will be the guiding principle for deciding the eligibility of assets to be bought under the ABS purchase programme (ABSPP) and covered bond purchase programme (CBPP3). There will be some adjustments to take into account the difference between accepting assets as collateral and buying assets outright. To ensure that the programmes can include the whole euro area, ABSs and covered bonds from Greece and Cyprus that are currently not eligible as collateral for monetary policy operations will be subject to specific rules with risk-mitigating measures.
The two programmes will last for at least two years and are likely to have a stimulating effect on issuance. Asset purchases will commence in the fourth quarter of 2014, starting with covered bonds in the second half of October. The ABSPP will start after external service providers have been selected, following an ongoing procurement process.
Further technical details on the ABSPP are provided in Annex 1 of this press release and on CBPP3 in Annex 2.

(RBC) Gilead Sciences: could grow through deals - ARWR, TKMR, ISI, ALNY...

Gilead Sciences: GILD should be taking a very strong look at Hep B

RBC thinks GILD should be taking a strong look at Hep B and these assets aren't expensive and they could be consolidating or buying assets. Firm highlights some public plays, noting they're mostly RNAi plays knocking down S-antigen. But they think public companies such as ARWR still remain attractive -- Phase II data will be most important to the firm in 2015-16. They note TKMR will go into Phase I in 2015, ISIS is in Phase I with an S-antigen antisense drug and could have data soon (haven't heard any update, partnered with GSK). They note ALNY will be in Phase I in 2016.

>>> Ariad Pharm set to open more than 10% higher on FDA Breakthrough Therapy des

Ariad Pharm announces AP26113 has received Breakthrough Therapy designation by the FDA for the treatment of patients with anaplastic lymphoma kinase positive metastatic non-small cell lung cancer who are resistant to crizotinib

Co announced that its investigational cancer medicine, AP26113, has received Breakthrough Therapy designation by the FDA for the treatment of patients with anaplastic lymphoma kinase positive metastatic non-small cell lung cancerwho are resistant to crizotinib.
  • This designation is based on results from the ongoing Phase 1/2 trial that show sustained anti-tumor activity of AP26113 in patients with ALK+ NSCLC, including patients with active brain metastases.

>>>US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: CREE -12.9%, AGU -5.5%, STZ -2.9%

Other news: WILN -13.1% (commenced litigation against several companies), TWI -8.7% (light volume, may be attributed to AGU outlook), NLNK -5.7% (announced appointment of Jack Henneman as Chief Financial Officer following departure of Gordon H. Link, Jr.), DNDN -5.2% (still checking), PTLA -3.6% (Portola Pharma files for 10 mln share common stock shelf offering; commenced an underwritten public offering of shares of its common stock and expects to raise gross proceeds of approximately $160,000,000), GPRO -2.5% (cont pre-mkt vol activity), RDUS -1.7% (announces proposed public offering), RVNC -1.5% (announced expected delay in results from Phase 3 study of RT001 for the treatment of lateral canthal (crow's feet) lines), MRD -1.5% (filed for ~27.8 mln share common stock offering by selling shareholders), POT -1% (following AGU earnings)

Analyst comments: DNDN -5.2% (target cut to $1 from $2 at Citi), ENPH -2.4% (downgraded to Neutral from Buy at BofA/Merrill), JPM -1% (downgraded to Neutral from Buy at UBS), MSI -0.7% (downgraded to Neutral from Buy at Citigroup), X -0.5% (downgraded to Hold from Buy at KeyBanc Capital Mkts), ETN -0.5% (downgraded to Perform from Outperform at Oppenheimer)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: GPN +5.4%, DRI +0.8%

M&A news: WLT +5.8% (may be an acquisition target by BHP (BHP), according to reports)

Select semiconductor stocks trading higher:UMC +2%, STM +1.6%, MU +1.4%, ASML +1.4%, AMD +1.2%, .

Other news: ESPR +33.4% (announces positive top-line Phase 2b results for ETC-1002, an investigational therapy for patients with hypercholesterolemia ), RLD +21.9% (Starboard raises stake to 9.9% and delivered a letter to the Board proposing to acquire the company for $12 per share), ARIA +10.2% (announces AP26113 has received Breakthrough Therapy designation by the FDA), LEU+8.8% (elects Williams as Chairman; begins process for CEO Transition; Chief Restructuring Officer John Castellano named interim CEO; John Welch to step down later this month), BTU +7% (WLT peer, may be in sympathy), DRL +6.2% (provided an update on status of its capital plan: co maintains readily available liquidity sources of ~$1 bln), SPEX +5.4% (cont momentum), GRMN +5% (announces Honda (HMC) has selected Garmin as the navigation provider for future Civic and CR-V models in Europe, Russia and South America), NBG +3.8% (still checking), TSLA +3.6% (Elon Musk tweets 'About time to unveil the D and something else'; suggesting Model D introduction on Oct 9), DTV +1.4% (Co and NFL extended and expanded DIRECTV's exclusive rights to carry NFL SUNDAY TICKET), ARG +1.3% (to increase argon prices by up to 15%, effective November 1 or as contracts permit), QIHU +1.1% (announces $200 mln Share Repurchase Plan), TKMR +1% (ebola play that was +18% yesterday)

Analyst comments: NDAQ +4.4% (upgraded to Buy from Hold at Deutsche Bank), ADSK +3.3% (upgraded to Outperform from Mkt Perform at Cowen), AKS +2.9% (upgraded to Buy from Hold at Deutsche Bank), TWTR +2.3% (upgraded to Overweight from Neutral at JP Morgan), JBLU +2% (upgraded to Mkt Perform from Underperform at Raymond James), RUBI +1.6% (initiated with a Buy at B. Riley & Co), P +1.5% (upgraded to Buy at Topeka Capital Markets), THRM +0.9% (upgraded to Outperform from Mkt Perform at Barrington Research ), ICE +0.7% (upgraded to Buy from Hold at Deutsche Bank), EXXI +0.7% (upgraded to Buy from Neutral at Guggenheim), BMS +0.7% (upgraded to Neutral from Underperform at BofA/Merrill), HBI +0.6% (initiated with a Outperform at Credit Suisse), VLO +0.5% (initiated with a Outperform at RBC Capital Mkts), BAC +0.5% (upgraded to Buy from Neutral at UBS)

>>> CNBC - MadMoney

Zillow among stocks with positive commentary on Wednesday's Mad Money
Stocks with favorable mention: ENB, MTW, SLXP, Z

Stocks with unfavorable mention: ANGI, EBAY, F, GTLS, HAR, K, LAZ, NYCB, PG

>>> Gartner raises forecast for 2014 global semiconductor sales to $338B, +7.2%

Gartner raises forecast for 2014 global semiconductor sales to $338B, +7.2% y/y (previously saw +6.7%); cites strong Q3, holiday related demand and robust iPhone 6 demand 
- Semiconductor revenue set an all-time record in the third quarter of 2014, fueled by a strong electronics build for the holiday season
- Demand for the iPhone 6 and iPhone 6 Plus has been robust
- Forecasts 2014 unit production of smartphones and ultramobiles to increase 27.0 percent and 18.9 percent, respectively.
- Sees 2014 DRAM Rev growth of 26.3%
- The semiconductor market is expected to grow 5.8 percent in 2015, with high inventories in the first quarter of 2015 emerging as the largest concern. 
- The semiconductor market is expected to grow by 1.0% in 2016 on expected oversupply for DRAM; Predicts the next big memory oversupply downturn will hit in 2016, causing DRAM revenue to plummet 25.5 percent