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FC: MARKETS OUTLOOK Aug 23, 2017at 07:20AM

UK seen down 11 / DAX up 6 / CAC down 2 / EStoxx50 flat
Tax reform came back into focus in the U.S. following a Politico report that President Trump’s team has made significant progress on a tax-reform proposal. The potential framework laid out in the article fell somewhat short of the market’s original expectations, but Wall St took it as a positive nonetheless.
Trump says he would be willing to shut down the government in order to get the funding needed for his proposed border wall, “if we have to close down our government, we’re building that wall,” Trump said at a rally in Arizona.
US MARKETS (% move from European close):
Dow Jones 0.28 21899.89
S&P 500 0.31 2452.51
Nasdaq 0.29 6297.477
VIX -3.81 11.35
The U.S. markets ended the day with decent gains as they trended higher over the afternoon with S&P closing above its 50dma. The S&P finished the day up 1%, up 0.3% from the European close, while the Nasdaq outperformed to finished the day up 1.4%. 9 out 11 S&P sectors ended in the positive led up by the tech, up 1.5%, health care, up 1.2%, and material, up 1.2%, sectors. Meanwhile underperforming the broader market was the real estate, down 0.1%, consumer staple, flat, and utility, up 0.2%, sectors. Trading volumes on the day were still light and well below recent averages.
AFTER HOUR MOVERS:
Ally Financial up 2% bank to pay parent $2.9Bn div after Fed action / salesforce.com down 1.5% 3Q billings view trails some est
DUE TODAY: Lowe’s, Eaton Vance
AFTER MARKET: PVH Corp, HEICO, HP
HEICO
ADR MOVERS SINCE EUROPEAN CLOSE:
SEADRILL up 4%
METRO down 1%
ASIAN MARKETS:
Nikkei 0.20 19422.00
Hang Seng 0.91 27401.67
Shanghai Comp -0.04 3288.92
Australia -0.30 5733.10
Asian markets are trading a bit mixed so far this morning, as HK leads to the upside followed by Japan, who are still up but off their highs of the morning, meanwhile China and Australia are trading with modest losses at the moment. Data wise Japan’s Nikkei Flash Manufacturing PMI rose to a three-month high of 52.8 in Aug from 52.1 in Jul.
GEELY up 3%, BRILLIANCE up 2%
M & A:
– RYAN AIR CEO says would be interested in bidding for all AIR BERLIN, adding that his airline has no access to Air Berlin data room and is unable to assess scope of restructuring needed by German carrier or its losses, Reuters reports
– AIR BERLIN creditors are said to prepare MOU for NIKI sale to LUFTHANSA, SZ reports
– AKZO Chemicals is said to have growing list of interested PEs including CVC Capital Partners and KKR, Apollo Global Management, Carlyle Group, Blackstone and Advent, De Telegraaf reports
COMPANY NEWS:
– ELEKTA 1Q net sales SKr2.17Bn vs est SKr2.12Bn, orders SKr2.74Bn, adj Ebita SKr187m vs est SKr259.5m, keeps target of an Ebita margin exceeding 20%
– NORSKE SKOG 2Q rev NKr2.85Bn, Ebitda NKr190m, loss NKr546m, NKr500m improvement program needs recapitalization, says Tissue Project at Bruck in Austria delayed, sees FY gross op earnings about NKr800m
– LENZING 1H rev E1.15Bn, Ebitda E270.7m, Ebit E204.2m, Ebit Margin 17.8%, net income E150.3m, sees FY results ‘considerably’ ahead of 2016
– EMMI 1H sales CHf1.6Bn vs CHf1.59Bn YoY, Ebitda CHf156.6m vs CHf153.3m YoY, Ebit CHf90.4m,sees FY org sales growth of -1% to 0% down from 1% to 2% previously, says markets remain competitive, conditions in the UK, Spain, Italy and France “difficult”
– AGFA-GEVAERT 2Q rev E622m, adj Ebit E47m, EPS E0.15, gr margin 34.1%, sees Ebitda margin of 10% in years to come, plans to make Healthcare it separate legal entity
– ZUR ROSE 1H sales CHf465.8m, Ebitda loss CHf11.6m, loss CHf18.1m, sees FY org growth near 10%, negative Ebitda, target for this year to buy German mail-order pharmacy
– SIEGFRIED 1H sales CHf349.1m, Ebitda CHf52.9m, Ebitda margin 15.2%, net income CHf21.6m, says 2H will be stronger, sees FY sales growth in single-digit percentage range & Ebitda growth in 2-digit percentage range
– SCANDI STANDARD 2Q net sales SKr1.62Bn vs est SKr1.65Bn, adj op profit SKr70m, says bird flu had negative impact of about SKr13m, bird flu effects to gradually decline after 3Q
– THYSSENKRUPP: Norway is said to plan to sign a deal to buy four submarines in E4.3Bn deal from ThyssenKrupp in 2019, Reuters reports
– VODAFONE are said to be in talks with BT subsidiary Openreach about a joint investment in new ultra-fast broadband for British cities, Telegraph reports
– SHIRE CEO says that business is strong, downplaying rising concerns that the planned departure of the CFO will disrupt an ongoing strategic review
– TOTAL is said to want to take part in Novatek LNG Arctic-2 Venture, Les Echos reports
– TAG IMMOBILIEN to issue Convertible Bonds of up to E277m due Sept 2022
– NORDAX CEO Falch to step down, will be replaced by Lundblad
EUROPEAN EX-DIV’S:
Nothing of note
COMMODITY SNAPSHOT (% move from European Close):
Gold -0.12 1285.91
Copper -0.06 51450
Oil -0.31 47.73
Natural Gas 0.34 2.942
EUR/USD -0.06 1.1759
GBP/USD -0.13 1.2823
RESEARCH HIGHLIGHTS:
Berenberg pushing STRABAG, rates new buy / MEGGIT raised to buy from hold at Jefferies / E.ON raised to outperform from sector perform at RBC / UNIPER cut to sector perform from outperform at RBC / GEBERIT cut to underperform from sector perform at RBC / INNOGY cut to underperform from sector perform at RBC / DSV cut to hold from buy at Cheuvreux / UMICORE cut to hold from buy at Berenberg
STILL TO COME:
NUMBERS: Picanol / Hufvudstaden / Lundbergs / Costain / Hansteen / Ambu / Tessenderlo / UNIQA Ins / Rockwool Int / NMC Health / WPP / Sonae (After Mkt)
UPDATES: Vedanta
TODAY’S AGENDA:
AGM’s / EGM’s etc: Elekta / LeoVegas
ROADSHOWS / INVESTOR DAYS: Straumann (Investor Meeting) / Hansteen (Amalyst Meeting) / Gjensidige Forsikring (Roadshow) / Nets (Roadshow) / Pandora (Roadshow)
CONFERENCES:
Carnegie Construction Seminar – YIT
MACRO:
EU: French, German & Euro Zone Markit Manufacturing PMI, Markit Services PMI, Markit Composite PMI, Euro Zone Consumer Confidence
US: MBA Mortgage Applications, Markit Manufacturing PMI, Markit Services PMI, Markit Composite PMI, New Home Sales