Asia
Asian equity markets traded negative with the underperformer being the Nikkei 225 (-2.75%) which has been weighed by strength in JPY. All 10 sectors of the Nikkei 225 traded with firm losses, led lower by telecoms. Conversely, out of the single digit number of gainers in the index, Mitsubishi Motors is the outperformer after they raised their FY net income forecast 40% to JPY 70bln vs. Exp. JPY 58bln. Elsewhere, the outperformer is the ASX 200, led higher by the utility sector after Santos GLNG and Origin’s Australia Pacific LNG signed an upstream cooperation agreement. The KOSPI was pressured amid declines to shares of Korean exporters, with its biggest weighted stock Samsung Electronics declining despite beating earnings expectations, while LG Electronics also fell after a large miss on its earnings report. Chinese markets trade negative amid continuing fears over the liquidity in the banking system, however there were attempts to alleviate these fears with a PBOC source commenting that market liquidity is sufficient which was the reason the PBOC didn’t see a need for repos this week. (RANsquawk)
Best Performing Sectors in the Nikkei 225: Oil & Gas (-1.61%), Health Care (-1.95%), Utilities (-1.96%)
Best Performing Stocks in the Nikkei 225: Mitsubishi Motors (+1.17%), Oki Electric (+0.91%), Sumitomo Osaka (+0.26%)
Worst Performing Sectors in the Nikkei 225: Telecommunication (-4.92%), Consumer Services (-3.09%), Basic Materials (-2.79%)
Worst Performing Stocks in the Nikkei 225: KDDI Corp (-5.34%), SoftBank (-4.76%), Shin-Etsu Chemical (-4.53%)
FTSE
Glencore Xstrata – Co. to invest in reopening Spain iron mine, according to sources. (Expansion) In other news, it was reported that co. is to buy stake in Rio Tinto’s Clermont coal mine. (Newswires)
G4S - Co. has replaced its UK chief executive as it attempts to salvage its damaged relationship with the government amid allegations that it overcharged on electronic tagging contracts for offenders. (FT-more)
ARM Holdings - IBM licenses new ARM technology for custom chips aimed at networking and communication. (Newswires)
Rio Tinto - Glencore Xstrata to buy stake in co.’s Clermont coal mine. (Newswires)
RBS – Co. said to be closing in on Citizens float. (City AM)
EasyJet – Co. to open 11 new French lines next year. (Les Echos)
Companies paying dividend: CRH (EUR 0.185), Immarsat (USD 0.198)
BROKER RECOMMENDATIONS
SHIRE RAISED TO BUY VS NEUTRAL AT BOFAML
SHIRE REMOVED FROM UBS’S MOST PREFERRED LIST
BSKYB CUT TO NEUTRAL VS OUTPERFORM AT MACQUARIE
SSE RATED NEW OUTPERFORM AT MACQUARIE, PT 1,550P
BRITISH LAND RAISED TO BUY VS NEUTRAL AT UBS
ABERDEEN ASSET RAISED TO BUY VS NEUTRAL AT UBS
G4S RAISED TO NEUTRAL VS UNDERWEIGHT AT HSBC
POLYMETAL RAISED TO NEUTRAL VS SELL AT CITI
ESSAR ENERGY PREDERRED AT NOMURA
DEBENHAMS CUT TO HOLD VS BUY AT SOCGEN
DRAX RATED NEW OUTPERFORM AT MACQUARIE, PT 760P
AZ Electronic CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
MITIE CUT TO UNDERWEIGHT VS NEUTRAL AT HSBC
DAX
BASF – Co. Q3 EBIT ex-items EUR 1.69bln vs. Exp. EUR 1.62bln, Q3 sales EUR 17.7bln vs. Exp. EUR 17.6bln, confirms 2013 forecasts. (Newswires)
OTHER GERMAN COMPANIES
Morphosys - Co. increases its 2013 profit guidance; Sees FY EBIT EUR 7mln - EUR 10mln vs. EUR 2mln - EUR 6mln. Sees FY revenue at upper end EUR 74mln - EUR 78mln range. (Newswires)
ElringKlinger – Q3 EBIT EUR 35.1mln vs. Exp. EUR 39.44mln, Q3 sales EUR 294mln vs. Exp. EUR 300.4mln. (Newswires)
BROKER RECOMMENDATIONS
THYSSENKRUPP CUT TO SELL VS BUY AT BANKHAUS LAMPE
DEUTZ, KION ADDED TO UBS’S LEAST PREFERRED LIST
DIALOG SEMICONDUCTOR RATED NEW OUTPERFORM AT RBC
WACKER CHEMIE CUT TO NEUTRAL VS OUTPERFORM AT MACQUARIE
CAC
AXA - 9M revenue rose 2% to EUR 69.5bln. 9M Life & Savings APE up 5% to EUR 4.6bln. 9M asset management revenue EUR 2.6bln vs. EUR 2.5bln. Solvency 1 ratio at 222% at September 30th. (Newswires)
Schneider Electric - Q3 sales EUR 5.90bln vs. Exp. EUR 6.15bln, cuts FY sales target. (Newswires)
Kering - Q3 revenue 2.52bln vs. Exp. EUR 2.55bln. Puma Q3 revenue EUR 824.8mln vs. Exp. EUR 821mln. Gucci Q3 Comp sales growth 0.6% vs. Exp. 2.1%. Total luxury Q3 comparable sales growth 5.6% vs. Exp. USD 8%. (Newswires)
Renault - Q3 revenue EUR 7.998bln vs. Exp. EUR 8.50bln, Prev. EUR 8.261bln; Maintains 2013 outlook. (Newswires)
Vinci - Q3 sales rise 5.5% to EUR 10.82bln. Sees slight increase in 2013 organic sales. Sees slight drop in 2013 operating profit.. Tax surcharge under consideration may hurt profit. (Newswires)
Saint-Gobain – Q3 revenue EUR 10.8bln vs. Exp. EUR 10.77bln, confirms 2013 targets. (Newswires)
Carrefour – Co. hires Itau BBA and CS for Brazil IPO. (Newswires)
OTHER FRENCH COMPANIES
Dassault Systemes – Co. CEO says may spend EUR 3-4bln on acquisition. (Newswires)
Areva - 9M revenue EUR 6.85bln vs. EUR 6.54bln. (Newswires)
Thales - 9M sales rise 2% to EUR 9.49bln. Q3 sales rise 4% to EUR 3.012bln. Confirms slight growth in order intake in 2013. Confirms 5-8% increase in 2013 EBIT vs 2012. (Newswires)
Icade - 9M revenue EUR 1.1bln vs EUR 1.2bln. (Newswires)
BROKER RECOMMENDATIONS
BNP PARIBAS CUT TO HOLD VS BUY AT DEUTSCHE BANK
CREDIT AGRICOLE CUT TO NEUTRAL VS OUTPERFORM AT EXANE
STMICRO CUT TO NEUTRAL VS BUY AT GOLDMAN
Pan-European
BBVA – Q3 net EUR 195mln vs. Exp. EUR 614mln, loan reclassification leads to EUR 600mln charge, Q3 bad loans ratio 6.7% vs. Prev. 5.5% in Q2. Co. wont pay January dividend. (Newswires)
CaixaBank - Q3 net EUR 50mln vs. Exp. EUR 32.8mln, bad loans ratio 11.4%. (Newswires)
UCB – Q3 revenue EUR 842mln vs. Exp. EUR 845mln, confirms outlook. (Newswires)
Belgacom – Q3 adjusted EBITDA EUR 428mln vs. Exp. EUR 426mln, Q3 sales EUR 1.57bln vs. Exp. EUR 1.58bln, reiterates 2013 outlook. (Newswires)
USG People – Q3 revenue EUR 599mln vs. Exp. EUR 586mln and underlying EBITA EUR 23.1mln vs. Prev. EUR 22.6mln. Co. expects positive trends to continue in Q4. (Newswires)
Brembo - Nuova Fourb are to sell up to 2mln shares in the Co. according to terms. Shares offered at EUR 19.60 to EUR 19.90 each. (Newswires)
Intesa Sanpaolo - Co. shareholder Compagnia Sanpaolo's Chief Chiamparino resigns according to statement. (Newswires)
ING Groep - Co. said underwriters exercised option to buy 4.95mln additional shares at USD 29.50 per share. (Newswires)
Companies paying dividend: Smurfit Kapa Group (EUR 0.103)
BROKER RECOMMENDATIONS
SANTANDER CUT TO SELL VS HOLD AT DEUTSCHE BANK
ENDESA CUT TO SELL VS NEUTRAL AT GOLDMAN
AUTOGRILL CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
RANDSTAD CUT TO SELL VS NEUTRAL AT UBS
SMI
Nestle – Co. to shut French frozen meals plant hit by horse meat scandal. (Newswires)
Other Swiss:
Bucher- Co. 9-month net revenue CHF 2bln vs. 1.93bln and confirms FY forecast for improvement in profit. (Newswires)
Panalpina – Q3 EBIT CHF 34.4mln vs. Prev. CHF 6.3mln, Q3 consolidated profit CHF 23.8mln vs. Prev. CHF 3.6mln. (Newswires)
BROKER RECOMMENDATIONS
CREDIT SUISSE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
ABB CUT TO NEUTRAL VS BUY AT UBS
ADECCO CUT TO SELL VS NEUTRAL AT UBS
BALOISE CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
GEORG FISCHER CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
Scandinavia
SSAB – Q3 sales SEK 8.38bln vs. Exp. SEK 8.39bln, Q3 operating loss SEK 598mln vs. Exp. loss SEK 190mln. Co. says sees Q4 positive demand growth for steel in Asia. (Newswires)
Atos – Q3 revenue EUR 2.09bln vs. Exp. EUR 2.12bln, FCF EUR 21mln and net cash EUR 353mln at end of Sep. Co. confirms 2013 outlook. (Newswires)
Uponor – Q3 net sales EUR 279.3mln vs. Exp. EUR 277.6mln, net income EUR 15.7mln vs. Exp. EUR 16.2mln. (Newswires)
Volvo – Q3 operating profit SEK 2.5bln vs. Exp. SEK 3.15bln, Q3 revenue SEK 64.9bln vs. Exp. SEK 66.9bln, orders for trucks rise 7% Y/Y. (Newswires)
Electrolux – Q3 sales SEK 27.3bln vs. Exp. SEK 27.6bln, raises forecast for 2013 US appliance demand to 7-9% growth. To take SEK 3.4bln charge in Q4 2013 and 2014 for cost cuts, manufacturing footprint program. (Newswires)
Novozymes – Q3 sales DKK 2.94bln vs. Exp. DKK 3.0bln, Q3 EBIT DKK 755mln vs. Exp.DKK 744mln. Co. changes FY outlook on FX. (Newswires)
NCC – Q3 sales SEK 13.1bln vs. Exp. SEK 13.8bln, Q3 net SEK 611mln vs. Exp. SEK 630mln. (Newswires)
Medivir - Co.'s Simeprevir wins FDA panel's 19 - 0 backing. (Newswires)
Companies paying dividend: Socfinasia (EUR 2.00)
Companies going Ex. dividend: Socfinasia (EUR 2.00)
BROKER RECOMMENDATIONS
ERICSSON RAISED TO BUY VS HOLD AT DNB
SEB RAISED TO BUY VS NEUTRAL AT CITI
SKF ADDED TO UBS’S MOST PREFERRED LIST, REMOVES ABB
SWEDISH MATCH RATED NEW UNDERWEIGHT AT BARCLAYS
ELECTROLUX RAISING ESTIMATE FOR DEMAND IN US
ALFA, WARTSILA REMOVED FROM UBS’S LEAST PREFERRED LIST
NESTE CUT TO HOLD VS BUY AT KEPLER
KEMIRA RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
US
US equities snapped yesterdays losses to finish in the green, benefiting from positive sentiment seen out of China & Europe following better than expected manufacturing PMI reading from China. Nevertheless, the S&P 500 underperformed its counterparts, weighed on by several poor earnings reports with a large portion of the lacklustre earnings seen in the index. In individual stocks, Pultegroup, the session's best performer boosted home-builders, rallying 7.13% after beating profit estimates. Cameron International was the session laggard falling 14.4% following the Co. weak earnings report. Weaker earnings also saw Xerox shares tumble, falling as much as 10% at one point. Elsewhere, McKesson shares surged 4.8% after the Co. announced it had agreed to buy German Celesio for USD 5.8bln. NQ Mobile shares fell by 61.57% as the Co. traded in and out due to volatility trading pauses following news that Muddy Waters rated the Co. shares a strong sell. Finally, the DJIA finished up 0.62% at 15508.56, the S&P 500 up 0.32% at 1752.01 and the NASDAQ 100 up 0.49% at 3362.38
Best Performing Sectors in the S&P 500: Consumer Services (+1.00%), Oil & Gas (+0.58%), Industrials (+0.57%)
Worst Performing Sectors in the S&P 500: Telecommunications (-1.01%), Utilties (-0.18%), Health Care (-0.11%)
Amazon.com Inc - Q3 loss per share USD 0.09 vs. Exp. loss per share USD 0.09. Q3 operating loss USD 25mln. Sees Q4 net sales USD 23.5bln - USD 26.5bln vs. Exp. USD 25.88bln. Q3 sales +24% to USD 17.09bln vs Exp. USD 16.76bln. (Newswires)
Microsoft Corp - Q1 EPS USD 0.62 vs. Exp. USD 0.54. Q1 rev. USD 18.53bln vs. Exp. USD 17.77bln. Q1 unearned rev. USD 20.2bln vs. Exp. 21.1bln. Q1 devices and consumer rev. grew 4% to USD 7.46bln. Q1 commercial rev. grew 10% to USD 11.20bln. (Newswires)
Express Scripts - Q3 adj. EPS USD 1.08 vs. Exp. USD 1.08, Co. sees year cash flow USD 4.0bln-4.5bln vs. USD 4.5bln-5.0bln previous forecast. (Newswires)
Boeing - Co. received China commitments for 737 Max jets worth USD 20.7bln, according to sources. (Newswires)
Twitter - Co. is expected to price IPO on November 6 and sees IPO price between USD 17.00 to USD 20.00 per share. (Newswires)
JPMorgan - Criminal case against Co. may prompt banking charter review. ( WSJ)
You can now follow real-time news headlines on the move with the new RANsquawk app available to download for free at ransquawk.com/mobile_app for Apple iPhone, Blackberry and Android users. Please note the headlines can be viewed on the app between 0630BST/0030CST to 2200BST/1600CST Monday to Friday but does not include Asian-Pacific news.