AC

GLOBAL MARKETS & NEWS ROUND-UP & OUTLOOK October 11, 2018 at 07:02AM

GLOBAL MARKETS & NEWS ROUND-UP & OUTLOOK

 

UK seen down 121 / DAX down 217 / CAC down 108 / EStoxx50 down 66

President Trump slammed the Federal Reserve as “going loco” for its interest-rate increases this year in comments hours after the worst U.S. stock market sell-off since February.

UK, EU are said to have agreed in principle to all-UK backstop plan, Prime Minister May will ask Brexit “war cabinet” to agree to backstop plan today, Telegraph reports.

RICS House Price Balance fell 2% vs est 1% increase with London posting the biggest slide as southeast deteriorated.

Chicago Fed President Evans says gradual rate increases that lift monetary policy into slightly restrictive territory above 3% and then pause to assess conditions could help
the central bank meet its goals for price stability and maximum sustainable employment.

US MARKETS (% move from European close):

Dow Jones -1.79 25598.74

S&P 500 -1.95 2785.68

Nasdaq -2.08 7422.051

VIX 23.31 22.96

The U.S. markets tumbled yesterday throughout the day in a somewhat orderly nature, amid continued concerns about economic and earnings growth prospects, with technical levels being
breached such as the S&P 50-dma, Dow 50-dma and Nasdaq 200-dma. The S&P finished the day down 3.3%, down 2% from the European close, while the Nasdaq finished the day down 4.1% and the Dow finished down 3.2%. All 11 S&P sectors ended in the negative led down
by the technology, down 4.8%, communication, down 4%, consumer discretionary, down 3.7%, and energy, down 3.6%, sectors. Meanwhile outperforming the broader market was the utility, down 0.5%, consumer staple and real estate, down 1.6%, sectors. Trading volumes
on the day were high and well above recent averages.

AFTER HOURS MOVERS:

Flour Corp down 12.5% sees 3Q rev approx. $4.6Bn vs est $4.95Bn / Jacobs Engineering down 3% / Square down 8.5% says CFO Fiar stepping down to accept Nextdoor CEO offer / Advanced
Micro Devices down 2.5% earlier fell by most in almost a year

DUE TODAY: Commerce Bancshares, Walgreens Boots Alliance

AFTER MARKET:

ADR MOVERS SINCE EUROPEAN CLOSE:

BAYER up 8.5%, RANDGOLD RESOURCES up 2.5% Most ADR’s down 0.5% to 1.5% along with the market move …. NORSK HYDRO down 2.5%, BNP down 2%, DIAGEO down 2%, SEADRILL down 2%, SOC GEN
down 2%

ASIAN MARKETS:

Nikkei -4.01 22563.01

Hang Seng -3.75 25210.49

Shanghai -4.34 2607.47

Australia -2.74 5883.80

Asian markets are tumbling off, to join the sell-off in the U.S. overnight, led down by China and Japan while HK is not too far behind and Australia is slightly outperforming but
still has big losses as they all near their lows of the session. Data wise Japan’s PPI YoY in Sep rose 3.0%, vs est 2.9%, MoM PPI rose 0.3%, vs est 0.2%. Australia’s Consumer Inflation Expectation in Oct was 4.0% which follows the 4.0% previously.

PRADA down 10.5%, HTC down 10%, GEELY down 6%, LI & FUNG down 5%, NOMURA down 4.5%, FAST RETAILING down 4.5%, BYD down 5%, SAIC down 4%, SAMSUNG down 4%

M&A:

– BMW to buy 25% stake in Chinese JV with Brilliance for E3.6Bn, becoming the first automaker to take advantage of China’s policy to let foreign companies take majority control in
their local partnerships

– INGENICO: NATIXIS’S payments business is said to be exploring a potential takeover of the E4Bn French fintech company Ingenico, discussions are preliminary and may not result in
a deal, Ingenico has also attracted interest from other suitors

– REVOLUTION BARS says talks with Deltic Group terminated, concluded that a transaction with Deltic would not be in the best interests of shareholders

– BAYER is said to weigh selling its Animal-Health Unit as part of post-Monsanto review

– BBVA closes transaction passing real estate assets to Cerberus

– OHL sells Ciudad Mayakoba project to Operadora Lakahn for E97m

– TF1 finalizes acquisition of 100% of Doctissimo from Lagardere

– NRC GROUP buys VR Track based on EV of E225m

– THALES and GEMALTO say they are discussing remedy proposals with antitrust authorities and expect to close the offer in the first quarter 2019

– FLEX placing of 172.9m shares at NKr14.25 per share, DNB, Pareto Securities, ABN Amro Bank, Arctic Securities, Fearnley Securities, SEB are all bookrunners

– KNORR-BREMSE IPO Prices at E80 per share, near middle of range

COMPANY NEWS:

– BAYER won a tentative ruling slashing the lion’s share of a $289m verdict in the first trial over claims that Roundup weed killer causes cancer and a judge is considering a new
trial on whether the company is at fault for an ex-school groundskeeper’s illness, tentative ruling wipes out $250m from verdict

– FAURECIA 3Q sales E4.01Bn up 8.3% at constant FX, repeats FY outlook for sales growth, op margin & EPS

– SUEDZUCKER 2Q suger unit rev E694m & op loss E6m, 1H sales E3.48Bn, Ebitda E260m, op result E139m, still sees FY rev E6.6Bn to E6.9Bn & op profit E25m to E125m

– FAGRON 3Q rev E114.9m vs co. est E116.2m, org rev +10.1% vs +10% QoQ % +9.7% co. est

– GEA GROUP 3Q prelim rev about E1.18Bn vs est E1.19Bn, op Ebitda about E135m, boosts FY rev growth outlook to about 7.5% vs 5% to 6% previously, sees FY op margin of about 11.1%
vs lower end of 12% to 13% range previously

– GERRESHEIMER 3Q rev E364.4m vs est E343.6m, adj Ebitda E73.7m vs est E73m, still sees FY rev E1.38Bn to E1.4Bn and adj Ebitda at cont FX guidance tending toward E305m

– TRYG 3Q pretax profit DKr825m vs est DKr773m, profit after tax DKr627m vs est DKr612.8m, combined ratio reported 83.8% vs est 84.0%, 3Q div DKr1.65, says expects a solvency ratio
of approximately 170 when the Alka acquisition is finalised

– SANOMA raises guidance on 2018 Op Ebit margin, now FY sees op Ebit margin above 14%vs at “around 14%” previously

– KAPPAHL

– REPSOL sees 3Q Spain downstream refining margin of $6.7/Bbl vs $7/Bbl YoY

– DIALOG SEMI to license tech, shift staff to Apple, Apple will pay $300m in cash for transaction, Dialog to start buyback of up to 10% of shares after 3Q update

– VOLKSWAGEN CEO says new Co2 targets would cause 100k jobs lost at VW should EU parliament decide to push through a CO₂ emissions target of 40% reduction, Sueddeutsche Zeitung reports

– UBISOFT says Assassin’s Creed Odyssey video game is having franchise’s best launch-week performance of this console generation

– BP says bye to low prices as it plans projects for oil over $60

– DASSAULT AVIATION has sold 36 Rafale Aircraft to India

– BNP PARIBAS CEO is on track to meet its goals for 2020, very important to have Brexit deal, Les Echos reports

– AMADEUS FIRE says it’s boosting its year forecast on positive permanent placement, stable temporary staffing and other services performing slightly above expectations, now sees
2018 Ebita up by at least 10%

– JCDECAUX signs 10-yr extension to exclusive advertising contract with Dubai Airports

– VARTA says open to talks on producing large battery cells, production increase for small lithium-ion batteries on schedule

– EDF: French Ecology Minister says France is studying possible changes to the company’s structure

– GALAPAGOS will hire 150 people at a new international headquarters they are building in Mechelen, Belgium, growing to up to 750 employees in coming years, De Standaard reports

– STANDARD LIFE ABERDEEN is said to be close to announcing Douglas Flint as Chairman, FT reports

– TRANSGENE’S TG1050 improves HBV immune response in Phase 1B

– NOVARTIS says Gilenya met primary endpoint in Phase IIIb Study

– SGL CARBON holds a Capital Markets day

– GALLIFORD TRY holds a Capital Markets day

EUROPEAN EX-DIVS:

Husqvarna SKr1.50

UK:

Barratt Developments 17.9p / Centrica 3.6p / Close Brothers 42p / HSBC $0.10 / Learning Tech 0.15p / Morgan Sindall 19p / OneSavingsBank 4.3p / Primary Health Properties 1.35p /
Spectris 20.5p / Spirax-Sarco Engineering 29p / Staffline 11.3p / Superdry 25p / Tesco 1.67p / Weir Group 15.75p Total UK 100 Points = 8.69

COMMODITY SNAPSHOT (% move from European Close):

Gold 0.40 1193.42

Copper -0.83 50060

Oil -1.79 72.07

Natural Gas -0.52 3.266

EUR/USD 0.25 1.1561

GBP/USD 0.21 1.3225

RESEARCH HIGHLIGHTS:

Santander pushing UNICREDIT, rates new buy / Santander pushing METROVACESA, rates new buy / Jefferies bearish on ASTON MARTIN, rates new underperform / Credit Suisse bearish on CYBG,
reinstated at underperform / Macquarie pushing MONEYSUPERMARKET.COM, reinstated at outperform / Macquarie pushing OCADO, reinstated at outperform / Oddo pushing DEVOTEAM, reinstated at buy / Peel Hunt pushing RHI MAGNESITA, rates new buy / NORSK HYDRO raised
to buy from hold at Arctic Securities / ELRINGERKLINGER raised to hold from sell at DZ Bank / CAPGEMINI cut to neutral from buy at Oddo / INDRA SISTEMAS raised to buy from neutral at Oddo / RESTAURANT GROUP raised to buy from hold at HSBC / GAMMA COMMS cut
to underperform from sector perform at RBC & raised to buy from add at Peel Hunt / GRIFOLS raised to buy from hold at Berenberg / AENA cut to hold from buy at Cheuvreux

STILL TO COME:

NUMBERS: WH Smith / Agrana Beteiligungs

UPDATES: Hays / Hargreaves Lansdown / Dunelm / Mondi / Virbac / Sabre Ins / Jupiter Fund Mgmt / Countryside Properties / Getlink

TODAY’S AGENDA:

AGM’s / EGM’s etc: Hargreaves Lansdown / Fila

ROADSHOWS / INVESTOR DAYS: Indus (Roadshow) / Aryzta (Roadshow) / Jenoptik (Roadshow) / IQE (Roadshow)

CONFERENCES:

Erste Group Bank Conf – Vienna Ins

European Committee for the Treatment and Research In Multiple Sclerosis Congress – Merck / Roche Nepcon Trade Show – Infineon Tech OktoberTech USA Trade Show – Infineon Tech

MACRO:

EU: French CPI, BoE Credit Conditions & Bank Liabilities Surveys

US: CPI, Real Ave weekly Earnings, Initial Jobless Claims, Continuing Claims, Bloomberg Economic Survey, Bloomberg Consumer Comfort, Monthly Budget Statement

 

Read More: GLOBAL MARKETS & NEWS ROUND-UP & OUTLOOK

gbpusd gbp-usd

Advertisements

Categories: AC, FC, SGM

Tagged as: ,