EFTA00370946.pdf

From: Ike Groff Subject: Early Tour 4.17.14 Date: Thu, 17 Apr 2014 09:52:05 +0000 image00 1 jpg; image002.png RDescription: Description: Good Morning ... European Markets off 0-60 bps (Portugal +0.08%) NKY +0.00%, SHCOMP -0.30%, HSI +0.28%, KOSPI -0.01%, TWSE +0.23%, ASX +0.63% EUR 1.3860 (+0.32%) JPY 102.06 (+0.17%) EURIJPY 141.45 (+0.15%) GBP +0.20% RUB +0.18% SEK +0.50% US 10yr 2.633% Futures: Dow -41, Nasdaq -3, -4 DXY $79.61 (-19c) Crude $103.86 (+10c) Gold $1299.50 (-$3.90) Copper +0.55% Silver +0.15% Nat Gas +0.51% Asian Markets started higher on the back of overnight strength in the US but most major indices closed off the best levels. Overall it was a quiet day and turnover remains very light ahead of tomorrow's holiday. China was the regional underperformer amid diminishing expectations of large scale stimulus from the central government, however the PBOC did implement a targeted RRR cut aimed at rural financial institutions. Japan got a midday boost on comments from GPIF advisor Ito that the pension fund is likely to change its portfolio allocation in June (in-line with consensus) but the Nikkei faded into the close to end flat. Gungho (+14.2%) and Canon (+1.2%) were in focus after positive earnings previews in the Nikkei. Korea ended largely flat on the day as local selling was offset by a foreign MOC buy basket. Taiwan closed higher for the 3S session in a row helped by strong gains in DRAM makers (Inotera +6.9%) and bike maker Giant (+6.7%) which was higher for a 5th day after a JPM upgrade last week. TSMC reported after the close (results beat). European markets are generally lower in fairly choppy session into the long weekend (Denmark & Norway closed today, '/2 day in Sweden, and all of Europe is closed tomorrow and Monday). Volumes tracking -10% vs the 20d average. Spirits/Beverages worst performing sector as Diageo sales miss and Remy Cointreau says current operating profit may be down 35-40% (prior guidance had implied down at least 20%) (DGE LN -4.3% & RCO FP -3.0% this morning). Tech also weaker after SAP & Atos both miss estimates (and Google -3.0% and IBM -4% pre-open following numbers last night). Jobless claims & Philly Fed out later this morning. Enjoy the long weekend. SPA's -4 handles = 1848.80 last. ***Jobless Claims @ 8:30am, Philly Fed @ 10am*** • Google revs +19.5% but disappointed as ad rates declined & rising costs erode profits (trading -3%) • IBM profit fell & quarterly revs sank to a 5yr low as hardware sales lower (reaffirmed profit) (trading -4%) • SankDisk profit jumped on higher revenues & boosted 2014 gross margin view (trading +6%) • American Express O1 headline beat & posted higher profit but card spend softened in US (trading -1%) • Capital One profit edged up & beat estimates but income from lending slipped (trading touch lower) EFTA00370946 • Kinder Morgan eps light (raises div) & may sell 50% stake in Ruby Pipeline (WSJ) (trading -1%) • Kansas City Southern net dropped on higher expenses but eps/revs beat estimates (trading +0.05%) • Noble profit +70% on fleet growth as revs rose & sees improving free cash flow in 2015 (trading +2.5%) • Sallie Mae O1 core eps missed ests as net income dropped 18% even as defaults declined (trading inline) • Diageo quarterly sales unexpectedly fall on emerging markets (-1.3% vs est +1.8%) (trading -4.3%) • Remy Cointreau profit warning: sees 35-40% decline in FY current operating profit (trading -3.0%) • SAP O1 software sales and operating profit miss estimates, sticks to outlook (trading -3.3%) • Atos Q1 revenues -1.8% versus estimate -1.4%, booking light, confirms 2104 outlook (trading -1.4%) • Publicis O1 organic growth beats estimates, reiterates 2014 growth target (trading +2.1%) • Akzo Nobel profit stagnates on revamp costs and fx, O1 sales miss, margins lower (trading -6.2%) • Taylor Wimpey IMS solid, order book +13%, sees 200-300bp margin improvement (trading +1.9%) • Actelion posts decent Q1 beat, well positioned to review guidance by mid-year (trading -0.05%) • Mulberry another profit warning, PBT guidance lowered to £14 million from £22 million (trading -0.63%) • RSA announced disposal of Lithunia, Latvia, Poland businesses for -£300 million (trading +2.8%) • Accor reports O1 revenue after the close, market looking for €1.23 billion (trading +1.1%) Leading European Sectors: Autos/Parts +1.22%, Trav/Les +0.83%, Fin Services +0.41% Lagging European Sectors: Food/Bev -1.42%, Basic Res -0.99%, Tech -0.80% PBCT op eps missed —ALSN net sales beat — DHR ceo succession EFII eps/revs beat — NSR eps missed — URI topped BLUR LN #'s weak — FXPO LN #'s slight beat — SW FP #'s inline Secondaries (announced/priced): ATHL, SNH, PLD IPO's (filed/priced): Weibo Corp (WB) 16.8M ADS priced at $17 (low-end), Sabre Corp (SABR) 39.2M shares priced at $16 (below), Sportsmans Warehouse 12.5M shrs priced at $9.50 (below), Vital Therpies (VTL) 4.5M shares priced at $12 (below), Zoosk (ZSK) files $100M IPO through Bofa, Citi, RBC IPO's (lock-up expiration): Waterstone Financial (WSBF), Fuel Cell Energy (FCEL), First Republic Bank (FRC) US Key Research: EFTA00370947 • BMO initiates RFMD/SWKS/TWNT (mp), DB upgrades EFX (buy), Leerink downgrades MDCO • Raja initiates GBDC/HAFC (op), Vertical initiates DMRC (buy), RBC initiates PCL (op) • Jefferies upgrades EFX/EIX (buy), JPM upgrades GOGO/BWP, Longbow initiates NCLH (buy) • Piper assumes SNDK (ow) & upgrades RALY, RBC upgrades AA & cuts SO, Raja downgrades HBAN • SunTrust initiates KRO (reduce), Citi downgrades MDP, PacCrest upgrades NFLX • Jefferies cuts NGLS/EPD, Baird upgrades SCTY, Stifel cuts R, Sterne Agee upgrades BOFI (buy) Europe Key Research: :••• Bofa downgrades SDRL NO/BAW SJ/ARTC DB & upgrades HTO GA (buy), Investec cuts DIA LN • Berenberg downgrades SZU GR (sell) & upgrades RSL LN, SocGen upgrades ELPE GA (buy) • Citi upgrades BKIA SM/CABK SM (buy) & cuts KIO SJ (sell), Panmure upgrades PDG LN (buy) • DB downgrades PKN PW, GS upgrades CHR DC (buy), Kepler downgrades CSGN SW • JPM downgrades KNIN SW/GJF NO & upgrades ETE GA, Panmure upgrades PDG LN (buy) • Natixis upgrades WPP LN (buy), Nomura upgrades AKZA NA & downgrades AKE FP • Equinet upgrades TUI GR (buy), HSBC downgrades DEB LN/TFG SJ/GARAN TI/YKBNK TI ▪ MS upgrades ASC LN & initiates GTT FP (ow), SEB Enskilda upgrades ELUX.B SS (buy) Reporting Pre-Open: ADS, AN, BAX, BBT, BLK, CMG, DD, DHR, DOV, FITB, GE, GS, HON, KEY, MAT, MS, PEP, PM, PPG, SHW, SLB, UNH, UNP, ACU, ALSN, BX, CNET, CY, FCFS, FCS, FHN, HLSS, HOMB, IIIN, KNL, NPBC, ORB, POOL, PVTB, SASR, SON, SYNT, TZOO, WBS, WSO, ZX Reporting Post-Close: ACTG, AMD, AMRB, ASBC, ATHN, CBF, CHKE, CPHD, HUBG, INDB, ISBC, SCSS, SFNC, WHG Economic Data: Jobless Claims @ 8:30am, Bloomberg Economic Expectations & Consumer Comfort @ 9:45am, Philadelphia Fed @ 10am EIA natural gas storage change @ 10:30am Conferences: No major conferences Analyst/Investor Days: PDCE, LULU, DIS EFTA00370948 Non-Deal Roadshows: ABTL, BCRX, CVX, DRQ, EGL, FUL, FXEN, MSM, ORCL Shareholder Meetings: BAXS, CCOI, ISSC, OC, PBCT, PPG, PTEN, STLY, TXN, WHG, CZNC, HBAN, MOFG, HOMB Equity/Mixed Shelfs: N/A Other Newspaper Articles & Stories WSJ positive: Bank of America (BAC) WSJ • For Obama, a Standoff With Moscow WSJ • Big Banks Ramp Up Business Lending WSJ • Tech-Stock Drop Hits Startups WSJ • GOP Fall Strategy: Slam Health Law WSJ • Emotions Mount in Ferry Rescue WSJ • GM Test Drivers Warned of Problems WSJ • Citi Received Mixed Signals From Fed on 'Stress Test' WSJ • BofA Swings to Loss on Legal Charges, Slump in Mortgages WSJ • Treasury Turns Its Gaze to Municipal-Bond Market WSJ • Chipotle Feeds Investor Appetite WSJ • Ukraine's Military Thrust Sputters WSJ • Billionaires Lay Out Bucks for NBA Team WSJ • GM Test Drivers Warned of Problems in 2006 WSJ • Fast-Rising Costs Erode Google's Profits WSJ • Home Depot Lumbers Into E-Commerce WSJ • EU sanctions push on Russia falters FT • Face of Irish crisis cleared of loan fraud FT • Corporate knights less likely to cut jobs FT • Worst start for hedge funds since crisis FT EFTA00370949 • Wages exceed inflation after long squeeze FT • Yellen warns inflation may lag recovery FT • NY's attorney-general subpoenas HFT firms FT • Ukraine's Push East Falters as Militants Seize Army Vehicles NYT • Sharp Decline Seen in Complications From Diabetes NYT • Hundreds Missing After Ferry Sinks Off South Korea NYT • Earnings and Sales From Google Disappoint NYT • The Future of Facebook May Not Say 'Facebook' NYT • A Settlement on Soured Mortgages May Raise Questions on What Is Enough NYT • Weibo, a Chinese Answer to Twitter, Prices Its Offering at $17 NYT • Interest rates 'to rise sharply next year' as wages grow Telegraph • Weibo is being scrutinised by investors and China Telegraph • GM asks judge for special protection Guardian Key Events This Week Friday: Good Friday (North American & European Markets Closed) Key Events on the Horizon Apr 21 — European markets closed for Easter Monday May 5 — Ira Sohn Conference NYC 9 (link) May 17 — Portugal exits bailout program EFTA00370950 Ike Groff 680 Washington Blvd Stamford, CT 06901 W s;;Description: iDescrintion: I® This e-mail and any files transmitted with it are 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