Америка сегодня. Потребительское кредитование.

Upgrades: 

• Barclays PLC (BCS) upgraded to Buy from Hold at Deutsche Bank
• Vale S.A. (VALE) upgraded to Overweight from Equal Weight at Barclays
• Michelin (MGDDY) upgraded to Overweight from Neutral at JP Morgan
• Antofagasta plc (ANFGY) upgraded to Hold from Sell at S&P Global
• Wirecard (WRCDF) upgraded to Neutral from Underperform at Credit Suisse

Downgrades: 

• RSA Insurance (RSNAY) downgraded to Sell from Neutral at UBS
• Popular (BPOP) downgraded to Sell from Neutral at UBS
• Ericsson (ERIC) downgraded to Underperform from Neutral at Credit Suisse
• Brasil Foods S.A. (BRFS) downgraded to Neutral from Overweight at JP Morgan
• Continental AG (CTTAY) downgraded to Neutral from Overweight at JP Morgan

Miscellaneous: 

• YPF Soc. Anonima (YPF) initiated with an Outperform at Credit Suisse
• London Stock Exchange (LDNXF) resumed with a Buy at Citigroup

European Government Bonds Rally as Pound Drops on Hard Brexit Fear

• European sovereign debt is trading higher this morning with the largest gains coming in the eurozone periphery. Eurozone unemployment was unchanged at 9.8% in November but remains much lower than its 12.2% high in late 2013. The unemployment rate got as low as 7.1% before the Great Recession so there should be a lot more slack in the eurozone labor market before the European Central Bank needs to take its foot off of the accelerator. Reports last week of a surprisingly large jump in the consumer price index have raised discussion on the issue of ECB asset purchases and prompted more warnings from inflation hawks that the ECB should be withdrawing monetary accommodation rather than adding it. Members of the ECB Governing Council are not flinching, however, and point to lots of excess capacity and core inflation that remains stuck below 1%. The Governing Council meets next on January 19
• U.K. Prime Minister Theresa May said over the weekend that the U.K. would seek a «new relationship» for Britain outside of the European Union in its upcoming negotiations, set to begin at the end of March. Most traders and investors interpreted her speech to mean that May's Tory government would prioritize control of immigration over maintaining access to the EU's single market. The pound traded to a 10-week low against the dollar overnight and an eight-week low against the euro
  
  • This morning, however, Theresa May denied that her government is committed to a so-called «hard Brexit» in which the UK loses access to the single market. It appears that she is resigned to losing the economic benefits of EU membership in favor of controlling immigration but believes that she can support the pound by denying that this isn't the case
• European Economic Data:
  
  • Eurozone unemployment was steady at 9.8% in November, as expected
    
    • The eurozone's Sentix Investor Confidence gauge rose more than expected to 18.2 for January from 10.0 in December
  • Germany's trade surplus widened for than expected in November to EUR21.7 bln from EUR20.6 bln in October
  • Italy's unemployment rate rose to 11.9% in November, missing estimates for a decline from October's 11.8% UE rate
  • Swiss retail sales increased by 0.9% y/y in November, beating forecasts and reversing October's 0.7% slide
  • The U.K.'s Halifax House Price Index rose 1.7% m/m in December (6.5% y/y), beating both economists' estimates and November's 0.6% growth
• Yield Check:
  
  • France, 10-yr OAT: -4 bps to 0.79%
  • Germany, 10-yr Bund: -3 bps to 0.27%
  • Greece, 10-yr note: -1 bp to 6.76%
  • Italy, 10-yr BTP: -7 bps to 1.89%
  • Portugal, 10-yr PGB: -10 bps to 3.93%
  • Spain, 10-yr ODE: -7 bps to 1.46%
  • U.K., 10-yr Gilt: -6 bps to 1.41%

Gapping up 
In reaction to strong earnings/guidance:

• EXAS +15.9%, (sees Q4 revs above consensus) TTOO +7.5%, GPN +5.1%, PTCT +4.2%, VNDA +3.9%, FRAN +3.2%, SPNE +2%, PME +1.7%, NUVA +1.4%, VLRS +1.1%

M&A news:

• MSTX +122.5% (signs merger agreement with privately held Savara Inc )
• MACK +35.8% (concludes strategic review; Ipsen (IPSEY) to Acquire Oncology Assets from Merrimack for $575 mln cash; up to $450 mln in additional regulatory approval-based milestone payments

Select metals/mining stocks trading higher: KGC +5.4%, VALE +4%, AUY +3.2%, GFI +2.8%, MUX +2.3%, GG +2.3%, AG +2.3%, GDX +2.2%, SLW +2%, ABX +1.9%, NEM +1.8%, AKS +1.1%

Other news:

• ADMS +7.2% (prepares for potential approval and launch of ADS-5102 for the treatment of levodopa-induced dyskinesia in patients with Parkinson's disease in 2017)
• ARWR +7.1% (issues response to new minority shareholder announcement by Silence Therapeutics plc; no discussions about any potential transaction)
• KERX +6.3% (provides business update; sees Q4 revs above consensus)
• EBIO +5.2% (provides upcoming milestones in slide presentation)
• CTIC +4.8% (provides 2017 key objectives)
• MDCO +4.2% (presents compelling safety and efficacy data from Day 180 interim analysis for ORION-1 Phase 2 Study of Inclisiran )
• EXEL +3.1% (announced today that Genentech (RHHBY) has withdrawn its counterclaim against Exelixis in the ongoing JAMS arbitration )
• ARLZ +1.8% (enters into a rebate agreement with Express Scripts (ESRX))

Analyst comments:

• JD +2.6% (upgraded to Overweight from Neutral at JP Morgan)
• BIDU +0.7% (upgraded to Neutral from Underweight at JP Morgan)

Gapping down
In reaction to disappointing earnings/guidance:

• BABY -7.7%, LULU -1.9%, CMC -1.5%

Select financial related names showing weakness:

• RBS -3.3%, DB -2.1%, PUK -1.6%, BCS -1.5%

Select oil/gas related names showing early weakness:

• WLL -1.7%, SDRL -1.5%, RDS.A -1.3%, CHK -1.3%, STO -1.3%

Other news:

• ADHD -23.8% (receives official minutes from its meeting with the Division of Psychiatry Products of the FDA held in early December)
• ETRM -2.1% (after filing amended S-1)

Analyst comments:

• RIG -2% (downgraded to Underperform at BofA/Merrill)
• KO -1.1% (downgraded to Sell from Neutral at Goldman)
• VMW -0.6% (downgraded to Neutral from Buy at UBS )

Gapping up 
In reaction to strong earnings/guidance:

• EXAS +15.9%, (sees Q4 revs above consensus) TTOO +7.5%, GPN +5.1%, PTCT +4.2%, VNDA +3.9%, FRAN +3.2%, SPNE +2%, PME +1.7%, NUVA +1.4%, VLRS +1.1%

M&A news:

• MSTX +122.5% (signs merger agreement with privately held Savara Inc )
• MACK +35.8% (concludes strategic review; Ipsen (IPSEY) to Acquire Oncology Assets from Merrimack for $575 mln cash; up to $450 mln in additional regulatory approval-based milestone payments

Select metals/mining stocks trading higher: KGC +5.4%, VALE +4%, AUY +3.2%, GFI +2.8%, MUX +2.3%, GG +2.3%, AG +2.3%, GDX +2.2%, SLW +2%, ABX +1.9%, NEM +1.8%, AKS +1.1%

Other news:

• ADMS +7.2% (prepares for potential approval and launch of ADS-5102 for the treatment of levodopa-induced dyskinesia in patients with Parkinson's disease in 2017)
• ARWR +7.1% (issues response to new minority shareholder announcement by Silence Therapeutics plc; no discussions about any potential transaction)
• KERX +6.3% (provides business update; sees Q4 revs above consensus)
• EBIO +5.2% (provides upcoming milestones in slide presentation)
• CTIC +4.8% (provides 2017 key objectives)
• MDCO +4.2% (presents compelling safety and efficacy data from Day 180 interim analysis for ORION-1 Phase 2 Study of Inclisiran )
• EXEL +3.1% (announced today that Genentech (RHHBY) has withdrawn its counterclaim against Exelixis in the ongoing JAMS arbitration )
• ARLZ +1.8% (enters into a rebate agreement with Express Scripts (ESRX))

Analyst comments:

• JD +2.6% (upgraded to Overweight from Neutral at JP Morgan)
• BIDU +0.7% (upgraded to Neutral from Underweight at JP Morgan)

Gapping down
In reaction to disappointing earnings/guidance:

• BABY -7.7%, LULU -1.9%, CMC -1.5%

Select financial related names showing weakness:

• RBS -3.3%, DB -2.1%, PUK -1.6%, BCS -1.5%

Select oil/gas related names showing early weakness:

• WLL -1.7%, SDRL -1.5%, RDS.A -1.3%, CHK -1.3%, STO -1.3%

Other news:

• ADHD -23.8% (receives official minutes from its meeting with the Division of Psychiatry Products of the FDA held in early December)
• ETRM -2.1% (after filing amended S-1)

Analyst comments:

• RIG -2% (downgraded to Underperform at BofA/Merrill)
• KO -1.1% (downgraded to Sell from Neutral at Goldman)
• VMW -0.6% (downgraded to Neutral from Buy at UBS )

The S&P 500 futures trade four points below fair value.

Equity indices in the Asia-Pacific region began the trading week on a mostly higher note while Japan's Nikkei was closed for Coming of Age Day. The closure has not prevented the yen from advancing 0.4% against the dollar to 116.51. Separately, China saw its sixth consecutive monthly decline in foreign reserves, which dropped to $3.01 trillion from $3.05 trillion.

• In economic data:
  • Australia's November Building Approvals +7.0% month-over-month (expected 4.6%; last -11.8%) and December AIG Construction Index 47.0 (last 46.6). ANZ Job Advertisements -1.9% month-over-month (last 1.6%)

---Equity Markets---

• Japan's Nikkei was closed.
• Hong Kong's Hang Seng added 0.3% with gaming names contributing to the uptick. Galaxy Entertainment and Sands China posted respective gains of 4.3% and 2.8%. Property names also outperformed with China Overseas, Sino Land, Henderson Land, and Cheung Kong Property Holdings climbing between 0.7% and 1.8%.
• China's Shanghai Composite climbed 0.5%. Shandong Lukang Pharmaceutical, Hebei Jinniu Chemical Industry, AVIC Heavy Machinery, and Jinxi Axle advanced between 5.6% and 7.6%.
• India's Sensex shed 0.1%. Dr Reddy's Labs fell 3.0% after a recent show of relative strength while Asian Paints, Coal India, Lupin, and GAIL lost between 1.4% and 1.9%.

Major European indices trade in negative territory with Italy's MIB (-1.8%) leading the retreat amid weakness in bank stocks. Elsewhere, the UK's FTSE (+0.3%) outperforms amid a 1.1% dive in the pound (1.2157) against the dollar after British Prime Minister Theresa May reiterated her country will leave the single market.

• In economic data:
  • Eurozone November Unemployment Rate held at 9.8%, as expected. January Sentix Investor Confidence 18.2 (expected 12.5; last 10.0)
  • Germany's November Industrial Production +0.4% month-over-month (expected 0.6%; last 0.5%) and November trade surplus EUR21.70 billion (expected surplus of EUR21.20 billion; last surplus of EUR20.60 billion). November Imports +3.5% month-over-month (expected 0.2%; last 1.2%) and Exports +3.9% month-over-month (consensus 0.5%; last 0.5%)
  • UK's December Halifax House Price Index +1.7% month-over-month (expected 0.2%; last 0.6%); +6.5% year-over-year (consensus 5.8%; last 6.0%)
  • Italy's November Unemployment Rate 11.9% (expected 11.6%; last 11.8%)
  • Swiss November Retail Sales +0.9% year-over-year (expected 0.4%; previous -0.7%)

---Equity Markets---

• UK's FTSE is higher by 0.3% with miners and consumer names showing relative strength. Anglo American, BHP Billiton, Randgold Resources, and Fresnillo are up between 0.2% and 1.9% while Burberry, Imperial Brands, British American Tobacco, Unilever, Intercontinental Hotels, and Diageo have added between 0.7% and 1.6%.
• Germany's DAX has given up 0.6%. Fresenius ST has tumbled 6.3% amid concerns the company will be negatively impacted by changes to Medicare coverage. Financials Commerzbank and Deutsche Bank are down 2.6% and 2.2%, respectively, while exporters are mixed. BMW and Daimler hold respective losses of 0.9% and 0.3% while Volkswagen is higher by 3.7% after reporting growth in 2016 deliveries.
• France's CAC is down 0.8% with financials BNP Paribas, AXA, Societe Generale, and Credit Agricole showing losses between 1.9% and 2.6%. Select consumer names outperform with Kering, Danone, and Louis Vuitton up between 0.2% and 0.5%.
• Italy's MIB trades down 1.8%. Unicredit, Banco Bpm, UBI Banca, Mediobanca, Intesa Sanpaolo, and Banca Pop Emilia Romagna show losses between 3.0% and 4.5%.

• Universal Corporation (UVV) announced that all outstanding shares of its Series B 6.75% Convertible Perpetual Preferred Stock will mandatorily convert on January 13, 2017. 
• EyeGate Pharmaceuticals, Inc. (EYEG) announced that it has received an additional development milestone from a subsidiary of Valeant Pharmaceuticals International (VRX) under the Company's License Agreement with Valeant, pursuant to which EyeGate has granted Valeant exclusive, worldwide commercial and manufacturing rights to the Company's EyeGate II Delivery System and EGP-437 combination product in the field of uveitis, as well as a right of last negotiation to license the Product for other indications. Under the License Agreement, the Company is eligible to receive milestone payments totaling up to $32.5 million upon and subject to the achievement of certain specified development-based and commercial milestones.
• RegeneRx Biopharmaceuticals (RGRX) announced that it has received a Notice of Acceptance for a patent from the Australian Patent Office for the use of Thymosin beta 4 (Tß4), the active pharmaceutical ingredient in the RegeneRx's proprietary drug candidate, RGN-352, to myelinate damaged neurons or axons (brain nerve cells). Myelination is a process of forming a myelin sheath around a nerve to allow nerve impulses to move more efficiently and is vitally important to healthy central nervous system functioning. 
• Cellect Biotechnology Ltd. (APOP) announces today that it has received notice, from one of the Company's major shareholders, Michael Ilan Management and Investment Ltd., a holding and investment company fully held by Mr. Michael Ilan, that it has increased its holdings in the Company by 187,500 shares purchased at market price of USD $3.47 on NASDAQ. MILMI now owns a total of 16,718,955 Company shares representing over 15.7% of the outstanding share capital of Cellect.
• DelMar Pharmaceuticals, Inc. (DMPI) announced an increase in funding of up to CDN$413,000 from the National Research Council of Canada Industrial Research Assistance Program (NRC-IRAP) to support ongoing research with VAL-083.

Filings:

• Aquinox Pharma (AQXP) files for 10,536,092 share common stock offering by selling shareholders
• ConforMIS (CFMS) files for $200 mln mixed securities shelf offering
• Second Sight Medical Products (EYES) files for 15 mln unit rights offering
• Fate Therapeutics (FATE) files for 20,864,660 share common stock offering by selling shareholders
• JBT Corp (JBT) files for mixed securities shelf offering; size not disclosed
• Progenics Pharm (PGNX) files for $250 mln mixed securities shelf offering and enters into Controlled Equity Offering Sales Agreement under which it may offer and sell shares of common stock having an aggregate offering price of up to $75 mln
• Extraction Oil & Gas (XOG) files for 25,041,041 common stock offering by selling stockholders

• XOP -1.68% USO -1.55% OIH -1.51% KRE -1.42% KBE -1.42% IYT -0.79% XLF -0.74% ITB -0.76% JETS -0.66% XLP -0.58% XLI -0.54% IWM -0.53%
• XBI +2.53% SMH +0.75% IBB +0.72% GLD +0.55% QQQ +0.38%