(BFW) ECB Staff Said to Have Outlined EU500b Investment Grade QE Plan

ECB Staff Said to Have Outlined EU500b Investment Grade QE Plan
2015-01-09 09:52:41.767 GMT


By Jana Randow and Alessandro Speciale
(Bloomberg) -- European Central Bank staff presented policy
makers with models for buying as much as EU500b of investment-
grade assets in meeting on Jan. 7, according to person who
attended Governing Council session.
* No decision was taken, meeting was to present options;
governors were asked not to reveal their opinions
* Presentations focused on govt debt purchases
* Options included setting monthly or total purchase targets
* Treatment of junk-rated debt such as Greek bonds not
addressed in presentation
* Person asked not to be identified because discussion was
private
* ECB spokesman declined to comment on council deliberations


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Paul Gordon, Jeff Black

>>> Metroweb sees Telecom Italia and Vodafone maintain interest

Metroweb sees Telecom Italia and Vodafone maintain interest 

Metroweb, the Italian fibre optic network operator controlled by the fund F2i, is still in contact with Telecom Italia and Vodafone over a potential sale, according to Milano Finanza.

The unsourced, Italian-language report noted that yesterday (8 January), Marco Patuano, Telecom's chief executive, and Renato Ravanelli, F2i's chief executive, met in order to consider the different options available.

The article further noted next week Ravanelli will also meet Vodafone management which is interested in the deal.

Metroweb has a turnover of EUR 60m.


Source Milano Finanza daily edition

(BofA-ML) The Flow Show - Two buy signals & a flash crash

* Buy the “flash crash”: as in Oct’14 a Treasury “flash crash” has coincided in early- Jan with a “buy signal” for oversold risk markets and tactical inflection point for markets

* Two “buy signals”:
- BofAML Bull & Bear Index triggers contrarian “buy” signal (Chart 1 - excessive bearish investor sentiment driven by big EM & HY outflows & weak price action in junk bonds);
- BofAML Global Breadth Rule on brink of triggering “buy” signal (Chart 2 - at Wednesday close net 80% of global equity markets trading below 200dma & 50dma, with US, China, Turkey the holdouts)
- “Risk-on” into ECB: our signals tactically argue for “risk-on” exposure in equity & credit markets into the ECB QE event on Jan 22nd (assuming US payrolls are robust)
- Volatility the Q1 winner: we worry a large ECB QE package in Jan will mark “peak QE expectations” leaving Europe/global risk markets in Q1 solely dependent on growth & EPS. And global govt bond yields could rise: fixed income markets have heavily discounted ECB QE (stock of negatively yielding Euro debt now stands at a staggering €1.2 trillion); in 3-months following Fed QE announcements 30-year Treasury yield rose on average 50bps. Volatility the only true winner if low growth, lower liquidity expectations cause investors to discount “policy failure” in coming months.
- Weekly flows: in line with bearish consensus, weekly flows showed “risk-off” rotation from equity funds ($12.1bn outflows) to bond funds ($5.3bn inflows) and money-markets ($9.0bn inflows)

* Asset Class Flows
- Equities: $12.1bn outflows ($7.8bn outflows from ETF’s vs $4.3bn outflows from mutual funds)
- Bonds: $5.3bn inflows (largest in 8 weeks) (Table 1)
- Precious metals: $0.2bn outflows (6 straight weeks)
- Money-markets: $9.0bn inflows

* Equity Flows
- EM: 8 straight weeks of redemptions ($1.3bn) (Table 2)
- US: $12.8bn outflows (via both ETF’s and mutual funds)
- Japan: $0.5bn inflows
- Europe: modest $0.3bn outflows

* Fixed Income Flows
- 55 straight weeks of inflows to IG bond funds ($5.4bn)
- 6 straight weeks of outflows from HY bond funds ($1.9bn)
- 5 straight weeks of outflows from EM debt funds ($0.5bn)
- 26 straight weeks of outflows from bank loan funds ($0.5bn) (Chart 3)
- 16 straight weeks of inflows to muni funds ($1.2bn)
- 12 straight weeks of inflows to MBS funds ($0.7bn)
- $1.0bn inflows to govt/tsy funds

>>> Sky shares gain as talk of takeover bid from Vodafone resurfaces

Sky shares gain as talk of takeover bid from Vodafone resurfaces 

Sky’s share price gained 2% yesterday, 8 January, on renewed talk that the listed UK-based satellite television broadcaster will receive a takeover bid from the FTSE-100 telecoms group Vodafone, The Times reported. The newspaper’s market report section did not cite a source for the speculation.

A market report in the Financial Times also briefly mentioned the rehashed speculation of a Vodafone bid for Sky, but did not cite a source.

Sky shares closed 17.5p up at 887p in London, giving the company a market capitalisation of GBP 15.24bn (EUR 19.48bn). Vodafone’s share price closed 9.75p up at 225.75p, a gain of 4.51%.

The Times (London), Financial Times

>>> What to look at today - 9th of January 2015

Dow+1,84% S&P +1,79% Nasdaq +1,84% Russell +1,71% VIX @ 17.01 -11.91%
US Market spiked again today, S&P surged past its 50d & 100d MA. Fed insider Jon Hilsenrath of the Wall Street Journal wrote this morning that the Fed could indeed raise rates soon if it is believed that low yields at the long end of the curve reflect an influx of capital into dollar-denominated assets, which could spark a surge in prices. Mr. Hilsenrath added that this was the view espoused by NY Fed President and this year's voting member William Dudley, who argued a similar situation presented itself in 2000s, leading to the housing bubble, All ten sectors finished the day in positive territory with cyclical groups pacing the rally. The materials sector (+2.4%) ended atop the leaderboard, but more notably, the technology sector, which is roughly six times the size of materials, jumped 2.2%. (AAPL +3.8%)... energy sector (+2.2%) was able to finish among the leaders even though crude oil remained on slippery footing. The energy component crept above the $49.50/bbl level overnight, but was beaten back to its flat line. The commodity was down in excess of 1.0% intraday, but fought back to a slim gain of 0.2% at $48.80/bbl....Volume in line with average @ 830mil shares... US Rally has been carried over to Asia...China inflation data were mixed, as December CPI matched expectations of 1.5% and also marked the first y/y sequential increase in 7-months, having hit a 5-year low of 1.4% in November. For the year, 2014 CPI came in at 2.0%, unchanged from YTD level in Nov and also well below 3.5% official target, China will release its trade data over the weekend
Nikkei +0.18% Hang Seng +0.97% Shanghai +1.68%

RUB $59.97 RUB €71.31 WTI $49.19 Brent $51.17

Eur$ 1.1798 S&P -0.16% EuroStoxx -0.83% Dax -0.41% SMI -0.25%

Macro :
- China Dec. Consumer Prices Rise 1.5% Y/y; Est. 1.5% Gain
- ECB’s Coeure: France’s Reforms Are Step in Right Direction
- ECB’s Coeure Says Drop in Oil Prices Good News for Euro Economy
- SNB 2014 Expects CHF38b Profit on Foreign Exchange, Gold Gains
- German Nov. Industrial Production Falls 0.1% M/m; Est. +0.3% M/m


Keep an eye on :
- ABG/P SM : Abengoa to Cut Debt by 30% in 2015, CEO Says: Expansion
- ADXN SW : Addex Year-End Cash Drops to CHF1.8m, Sees Data in Coming Months
- ALPH SW : Alpiq Sees CHF1b Impairments After Tax on Low Wholesale Prices
- AREVA FP : Areva Names Philippe Varin Chairman of Board of Directors
- BBVA SM : BBVA Expressed Interest In Novo Banco, Jornal de Negocios Says
- BMW GY : Shanghai to Give Free License Plates to BMW i3 Car Owners
- DWNI GY : Deutsche Wohnen Extends Appointment of CEO Zahn Through 2020
- ERICB SS : Ericsson Claims TCL Comm Smartphones Infringe 5 Mobile Patents
- HFG LN : Hilton Food Says 2014 Results in Line With Board Forecasts
- JEN BB : Jensen Family Buys Additional EU922,484 of Jensen-Group Stock
- MRW LN : Morrison Said to Plan 4-Year Running Sponsorship Deal: Sky
- PTC PL : Portugal Telecom Didn’t Properly Apply Risk Policy: PWC
- PTC PL : Ongoing Says Altice PT Offer Is Best Known Alternative at Moment
- QIA GY : Qiagen Exceeds ’14 Goal to Achieve 1,250 QIAsymphony Placements
- ROG VX : Roche Says FDA Approves Screening Assay for Blood Donations
- SAN FP : Sanofi, Regeneron Say Alirocumab Monthly Dose Meets Trial Goal
- SAN SM : Santander to Sell Shrs at EU6.18/Shr in EU7.5b Capital Increase
- SAN SM : Santander Not Looking at Banca Monte Dei Paschi, CEO Says
- SW FP : Sodexo 1Q Organic Sales Growth 2.3%, Confirms FY Targets
- TUI1 GY : TUI Buys MS Europa 2 for EU278m From Otto Mihm, FAZ Reports

>>> Brokers Upgrades & Downgrades - 9th of January 2015

>>> Up
*BCP RAISED TO NEUTRAL VS REDUCE AT NOMURA
*FIAT CHRYSLER RAISED TO NEUTRAL VS UNDERPERFORM: CREDIT SUISSE
*HALFORDS RAISED TO OVERWEIGHT AT HSBC
*HENDERSON GROUP RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*MERCK KGAA RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*MORGAN SINDALL RAISED TO BUY VS HOLD AT JEFFERIES
*PEUGEOT RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*RECKITT BENCKISER RAISED TO NEUTRAL VS SELL AT UBS
*VEOLIA RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE

>>> Down
*ASHMORE GROUP CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*BARRATT DEVELOPMENTS CUT TO UNDERPERFORM VS BUY AT JEFFERIES
*BELLWAY CUT TO HOLD VS BUY AT JEFFERIES
*BERKELEY GROUP CUT TO UNDERPERFORM VS HOLD AT JEFFERIES
*BOVIS CUT TO HOLD VS BUY AT JEFFERIES
*COLT CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*COUNTRYWIDE CUT TO HOLD VS BUY AT JEFFERIES
*CREST NICHOLSON CUT TO HOLD VS BUY AT JEFFERIES
*DUERR CUT TO NEUTRAL AT HSBC
*LSL CUT TO HOLD VS BUY AT JEFFERIES
*MAUNA KEA TECHNOLOGIES CUT TO SELL VS HOLD AT SOCGEN
*MILLICOM CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*PERSIMMON CUT TO UNDERPERFORM VS HOLD AT JEFFERIES
*REDROW CUT TO HOLD VS BUY AT JEFFERIES
*RIGHTMOVE CUT TO UNDERPERFORM VS HOLD AT JEFFERIES
*STAGECOACH CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*TAYLOR WIMPEY CUT TO HOLD VS BUY AT JEFFERIES
*TURK HAVA YOLLARI CUT TO NEUTRAL VS BUY AT UBS
*ZOOPLA CUT TO HOLD VS BUY AT JEFFERIES
*ZURICH INSURANCE CUT TO SELL VS HOLD AT SOCGEN

>>> PT Changes


>>> Initiation
*TSB RATED NEW EQUALWEIGHT AT BARCLAYS, PT 270P
*VIRGIN MONEY RATED NEW OVERWEIGHT AT BARCLAYS, PT 370P

>>> Call
>> Stock
*ATLANTIA ADDED TO GOLDMAN CONVICTION BUY LIST

(BFW) Santander to Sell Shrs at EU6.18/Shr in EU7.5b Capital Increase

Santander to Sell Shrs at EU6.18/Shr in EU7.5b Capital Increase
2015-01-08 22:11:23.600 GMT


By Robin Stringer
(Bloomberg) -- Bank to sell 1.21b shrs, it says in
regulatory filing.
* Bank was offering shrs in range EU6.18-EU6.50, person
familiar said earlier
* NOTE: Earlier, Santander Plans Capital Increase of Up to
EU7.5 Billion: Link

Link to Company News:SAN SM <Equity> CN <GO>

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To contact the editor responsible for this story:
Robin Stringer at +1-212-617-2526 or
rstringer7@bloomberg.net