>>> Asian Update

Asian Mid-session Update: China ends 2014 with a sequential uptick in CPI; Investors await NFP after a 2-day rally


***Economic Data***
- (CN) CHINA DEC CPI Y/Y: 1.5% V 1.5%E (first sequential y/y rise in 7 months)
- (CN) CHINA DEC PPI Y/Y: -3.3% V -3.1%E (34th straight month of decline); Largest decline since Sept 2012
- (AU) AUSTRALIA NOV RETAIL SALES M/M: 0.1% V 0.2%E (6th consecutive month of increase)
- (AU) AUSTRALIA DEC AIG PERFORMANCE OF CONSTRUCTION INDEX: 44.4 V 45.4 PRIOR (2nd month of contraction)
- (NZ) NEW ZEALAND NOV BUILDING PERMITS M/M: 10.0% V 9.8% PRIOR (12-month high)
- (JP) JAPAN DEC OFFICIAL RESERVE ASSETS: $1.26T V $1.27T PRIOR

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.6%, S&P/ASX +1.2%, Kospi +1.4%, Shanghai Composite +0.3%, Hang Seng +1.1%, Mar S&P500 -0.1% at 2,053

***Commodities/Fixed Income***
- Feb gold +0.2% at $1,211, Feb crude oil +0.9% at $49.25/brl, Mar Copper flat at $2.76/lb
- SLV: iShares Silver Trust ETF daily holdings rise to 10,260 tonnes from 10,216 tonnes priors; first rise since Dec 11
- (US) Weekly Fed Balance Sheet Total Assets for week ending Jan 7th: $4.50T v $4.50T prior; M1 y/y change: 9.5% v 9.4% w/w; M2 y/y change: 5.8% v 5.8% w/w
- (JP) BOJ to buy ¥400B in 1-3yr JGB, ¥400B in 3-5 yr JGB, ¥240B in 10-25yr JGB and ¥140B in JGB with maturity over 25-yr
- USD/CNY: (CN) PBoC sets yuan mid point at 6.1296 v 6.1302 prior setting (first firmer Yuan setting since Dec 31st)

***Market Focal Points/Key Themes/FX***
- The rally in US equities has once again carried over to Asia, where materials and tech driven Australia and Korea are leading the charge. Gains in Shanghai are slightly more subdued, as IPO expectations and a 70pip retreat in USD/JPY to 119.20 have capped the rebound. Markets are also on edge going into the non-farm payrolls report in the US, following better than expected ADP and weekly claims releases earlier this week.

- 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. Wholesale inflation - PPI - was in the red for the 34th consecutive month and also deteriorated to -1.9% for 2014 from -1.8% YTD in November. After posting a record surplus last month on the back of falling imports, China will release its trade data over the weekend.

- In Australia, the construction sector registered its 2nd month of contraction, which should help diminish RBA concerns over housing inflation and potentially reintroduce a dovish bias to its next policy statement. Retail sales were also underwhelming at just 0.1%, although that did mark the 6th consecutive month of sequential growth. AUD/USD is up for the 2nd day, rising about 40pips from the lows above $0.8140.

- After yesterday's remarks from Fed dove Evans calling any potential 2015 rate hike "catastrophic", Minnesota Fed Pres Kocherlakota also spoke about the importance of Fed credibility around the 2% inflation target. The dovish dissenter from 2014 added that unemployment remains elevated in calling for caution on tightening, pointing to low energy prices and disinflationary forces around the world. US equity futures briefly traded higher as Kocherlakota made his dovish remarks.

***Equities***
US markets:
- SD: Reports Q3 $0.07 v $0.02e, R$394.1M v $398Me; +12.3% afterhours
- PRTO: Journal of Cardiovascular Pharmacology Publishes Positive Nonclinical Results of PRT-201 in Peripheral Artery Disease; +3.6% afterhours
- HK: Makes additional cuts to 2015 Drilling & Completion Budget; +1.9% afterhours
- SF: Stifel and Urban Edge to be added to S&P400; +1.0% afterhours
- AAPL: Carl Icahn: Apple is still undervalued; Apple is my favorite stock - CNBC interview; +0.4% afterhours
- TWTR: Carl Icahn: Not involved in Twitter; Does not own any Twitter; Only looked peripherally into Twitter - CNBC interview; -0.1% afterhours
- CUDA: Reports Q3 $0.06 v $0.05e, R$70.4M v $70.1Me; -0.4% afterhours
- SBUX: COO Troy Alstead to take extended unpaid leave; effective March 1; transition plans to be detailed on Jan 22; -1.8% afterhours
- M: Reports Nov/Dec SSS +2.7%; affirms FY14 guidance; Announced a series of initiatives to evolve its business model and invest in continued growth opportunities as consumers change the way they shop; -3.2% afterhours
- BBBY: Reports Q3 $1.19 (ex benefits, incl litigation) v $1.19e, R$2.94B v $2.97Be; -3.5% afterhours
- RT: Reports Q2 -$0.15 v -$0.14e, R$262.7M v $268Me; -8.5% afterhours
- TCS: Reports Q3 $0.07 v $0.07e, R$190.9M v $200Me; Cuts FY14 guidance; -9.0% afterhours
- FIVE: Reports holiday SSS +3.2%; Affirms Q4 $0.59-0.60 v $0.62e, Narrows lower R$262-263M (prior $262-266M) v $266Me, SSS +3; -14.3% afterhours
- CNAT: Announces Top-Line Results From ACLF and Organ Impairment Clinical Trials of Emricasan; -36.1% afterhours

Notable movers by sector:
- Consumer Discretionary: Chow Tai Fook Jewellery Group 1929.HK -6.6% (Q3 SSS result); Fast Retailing 9983.JP +3.1% (Q1 results)
- Financials: Agile Property Holdings 3383.HK +1.2% (Dec sales result); KWG Property Holding 1813.HK +1.8% (Dec sales result)
- Materials: Queensland Bauxite QBL.AU +10.5% (issues update on approvals); Flinders Mines FMS.AU +5.3% (provides update on resource estimates)
- Industrials: Dalian Port 601880.CN +10.0%, Dalian Huarui Heavy Industry Group 002204.CN +3.4%, Dalian Friendship Group 000679.CN +3.0% (Dalian submits plan for free trade zone trial); Kawasaki Heavy Industries 7012.JP +2.8% (FY14/15 to beat forecast)
- Healthcare: Sosei Group Corp 4565.JP +4.6% (submits regulatory filings to FDA)

>>> US After Hours Summary: SD +7.7%, HELE +5.5%, SUNE +1.5%, EOPN -34

After Hours Summary: SD +7.7%, HELE +5.5%, SUNE +1.5%, EOPN -34.7%, FIVE -15.1%, BBBY -3.9%, M -2.7% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: SD +7.7%, HELE +5.5%, BAMM +1.8%, SUNE +1.5%

Companies trading higher in after hours in reaction to news: RVNC +11.9% (announced publication of positive results from RT002 Phase 1/2 study in which RT002 achieved median duration of 7 mos, met its efficacy and safety endpoints), PRTO +3.6% (announced publication of nonclinical data on PRT-201 in peripheral artery disease), GILD +1.7% (seeing reports that health insurer Anthem has selected Harvoni as hepatitis C drug of choice), SF +1.0% (to replace IRF in the S&P MidCap 400)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: EOPN -34.7%, FIVE -15.1%, RT -9.9%, TCS -8.5%, BBBY -3.9%, M -2.7%, VOXX -2.5%, CUDA -0.4%, GPS -0.3%, ANGO -0.2%, ABBV -0.2%

Companies trading lower in after hours in reaction to news: CNAT -35.1% (announced top-line results from acute-on-chronic liver failure and organ impairment clinical trials of emricasan; co has decided to discontinue the acute-on-chronic liver failure trial due to logistical challenges), SBLK -18.1% (co plans to make an underwritten public offering of its common stock; size not disclosed), ADMP -7.9% (co will offer shares of its common stock in an underwritten public offering; size not disclosed), KBIO -6.5% (CEO David W. Pritchard announced retirement), GMLP -5.0% (announced secondary offering of 7,170,000 common units by Golar LNG Limited (GLNG)), ADHD -2.8% (announced it intends to offer its ordinary shares in a public offering; terms not disclosed), SBUX -1.5% (announced COO Troy Alstead is taking an extended unpaid leave from the co, effective March 1, 2015), SAVE -1.0% (reported preliminary traffic results for December 2014; Traffic in December 2014 increased 17.7% versus December 2013 on a capacity increase of 20.1%) 

>>> Petroceltic activist Worldview Capital calls for EGM to remove CEO Brian O’C

Petroceltic activist Worldview Capital calls for EGM to remove CEO Brian O’Cathain, make additions to board

Petroceltic International [LON:PCI] activist shareholder Worldview Capital Management is calling for an extraordinary general meeting to remove CEO Brian O’Cathain, according to multiple reports.

Several news outlets cited a statement from Worldview Capital, which controls 28% of Petroceltic, which indicated that the investment fund is also seeking a board shakeup - including its own seat and the addition of Maurice Dijols as an independent director with industry experience.

As reported, Worldview initiated legal proceedings against Petroceltic in which it alleges that the company has failed to undertake a review of its business.

Reuters - Ex-Moore Capital manager Findley's hedge fund Bramshott to close-sour

Exclusive - Ex-Moore Capital manager Findley's hedge fund Bramshott to close-sources

LONDON (Reuters) - Hedge fund Bramshott Capital, led by former Moore Capital portfolio manager Paul Findley, is shutting down, four sources familiar with the matter told Reuters on Thursday.
One of the sources said the key reason for the closure was the fund's 1 percent return in 2014, compared with 15.5 percent in 2013, when it outperformed its peers' average 12 percent gain, as measured by industry data tracker Eurekahedge.
The Bramshott Europe Fund bets on rising and falling prices in regional equities. It was spun out of Moore Capital in May 2011 and managed about $425 million in October last year, a letter to investors obtained by Reuters showed.
The fund's 2014 returns compare with a 0.6 percent rise in the Eurekahedge Europe Long Short Equities Hedge Fund Index.
Bramshott Chief Operating Officer Rupert Mahon declined to comment when contacted by Reuters. Findley joined Moore in 2008 after working for a decade at Threadneedle Asset Management.
Hedge funds have been hit in recent months by poor returns and rising costs due to a growing regulatory burden.As many as 661 hedge funds shuttered globally through the end of September last year, data from industry tracker HFR showed. Money managers including Brevan Howard, BlueBay and OVS Capital Management all shut down hedge funds last year.
In Europe, investors pulled about $15 billion from hedge funds in the second half of the year after investing about $35 billion in the first half, data from Eurekahedge showed.
Net inflows for hedge funds in the region for 2013, when European long/short equities hedge fund returned more than 12 percent, stood at $64 billion, Eurekahedge data showed.

>>> US Close Dow+1,84% S&P +1,79% Nasdaq +1,84% Russell +1,71%

Closing Market Summary: Stocks Erase January Losses

The S&P 500 spiked 1.7% on Thursday, continuing its rebound that began on Wednesday when the index found support at its 100-day moving average (2005). Today, the benchmark index surged past its 50-day moving average (2044) and returned to unchanged for the year. The Nasdaq Composite had an even better showing, surging 1.8%.

Equity indices didn't waste any time after yesterday's rebound, extending higher in the futures market in reaction to evening comments made by Chicago Fed President, and more importantly, 2015 FOMC voting member Charles Evans. Presenting at the University of Chicago, Mr. Evans reiterated his belief that due to low inflation, the Fed should not rush to raise rates, adding for good measure that such move would be a "catastrophe."

Interestingly, 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.

The signs of an impending tug-of-war at the Fed over when to pull away the punchbowl did not stop the stock market from spiking out of the gate and adding to its advance in afternoon action. Meanwhile, Treasuries retreated, sending the 10-yr yield higher by six basis points to 2.01%.

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%.

The largest sector by weight enjoyed broad-based support. Apple (AAPL 111.89, +4.14) spiked 3.8%, buoyed by reports of strong sales in China. Other influential sector members also posted impressive gains with Facebook (FB 78.18, +2.02), Hewlett-Packard (HPQ 40.68, +0.95), and Microsoft (MSFT 47.59, +1.36) soaring between 2.4% and 2.9%. Even Google (GOOGL 506.91, +1.76) was able to end in the green after being down as much as 1.5% after Stifel downgraded the stock to ‘Hold.' However, the relative strength was not isolated to large names. Chipmakers rallied across the board with the PHLX Semiconductor Index advancing 2.9%.

The combination of unwavering strength among technology stocks of all sorts helped the Nasdaq Composite finish ahead of the S&P 500 even though biotechnology struggled to stay in the green. The iShares Nasdaq Biotechnology ETF (IBB 314.44, +2.44) gave up most of its opening gain during the first hour and flirted with its flat line, but still ended higher by 0.8%. For its part, the health care sector (+1.7%) settled in-line with the S&P 500.

Like health care, the remaining countercyclical sectors finished in-line with or just behind the broader market. Consumer staples (+1.5%) and telecom services (+1.7%) spent the day just behind the S&P 500 while utilities (+0.7%) underperformed amid the increase in Treasury yields.

Elsewhere, the 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.

Today's participation was in-line with average with 830 million shares changing hands at the NYSE floor.

Economic data was limited to Initial Claims and Consumer Credit:
  • Initial claims decreased to 294,000 from an unrevised 298,000 while the consensus expected a decline to 290,000 
    • Anecdotal reports of increased layoff activities in the energy sector due to low oil prices have not led to changes in unemployment insurance trends so far. That being said, we could see an uptick in claims in the coming weeks if fracking becomes unprofitable and energy companies continue slashing capital expenditure budgets. 
    • The continuing claims level increased to 2.452 million from a downwardly revised 2.351 million (from 2.353 million) while the consensus expected an increase to 2.365 million 
  • Consumer credit increased by $14.10 billion in November, down from an upwardly revised $16.00 billion (from $13.20 billion) in October. The consensus expected an increase of $15.0 billion 
    • For the last 12 months, consumer credit has increased by at least $10.00 billion per month 
Tomorrow, the Nonfarm Payrolls report for December (consensus 245K) will be released at 8:30 ET while November Wholesale Inventories (consensus 0.3%) will be reported at 10:00 ET.
  • Dow Jones Industrial Average +0.5% YTD 
  • S&P 500 +0.2% YTD 
  • Nasdaq Composite UNCH YTD 
  • Russell 2000 -0.7% YTD

** Banco Santander S.A. ABO ***LAUNCH***


** Banco Santander S.A. ABO ***LAUNCH***
Primary Accelerated Bookbuild Offering by
Banco Santander S.A. of Approximately €7,500m

Not for distribution into the USA, Japan, Australia & Canada

This communication is being distributed solely to investment professionals outside the United States in reliance on Regulation S under the US Securities Act of 1933, as amended (the “Securities Act”) and in the United States to certain Qualified Institutional Buyers, as defined in Rule 144A under the Securities Act. If you are not an investment professional, any investment or investment activity to which this communication relates is not available to you, and will not be engaged in with you, and you may not rely on this communication. This material is for your information only, is not intended to be used by anyone other than you and may not be forwarded to any other person. This information is subject to change.


Issuer: Banco Santander S.A. (“Santander”, the “Company” or the “Issuer”)
Joint Bookrunners: Goldman Sachs International, UBS Limited
Securities Offered: Ordinary Shares (100% Primary)
Offering Type: Accelerated Bookbuild Offering
Offering Size: approx. €7,500m
Use of proceeds: Frontload organic capital generation to (i) accelerate organic growth opportunities in core markets given improving outlook, (ii) accelerate normalisation of the dividend policy
to a cash pay-out of 30-40% and (iii) Achieve best in class capital standards
Distribution: Private placement to international investors outside the US under Reg S and to certain Qualified Institutional Buyers in the US
Lock-up: Subject to customary exceptions, no sales by the Issuer for 90 days, without the consent of the Goldman Sachs International and UBS Limited
Launch Date: January 8, 2015
Expected Pricing Date: January 9, 2015
Expected Allocation Date: January 9, 2015
Expected Trade Booking Date:January 12, 2015
Expected Start of Trading: January 13, 2015
Expected Settlement Date: January 15, 2015 (T+3)
Listing: Mercado Continuo (Spanish Stock Exchange - BME)
Ticker: Bloomberg: SAN SM
ISIN: ES0113900J37

>>> AAPL+2.4% - Reports FY14 app store sales $15B, +50% y/y Apple announced that

Reports FY14 app store sales $15B, +50% y/y 

Apple announced that the first week of January set a new record for billings from the App Store with customers around the world spending nearly half a billion dollars on apps and in-app purchases, and New Years Day 2015 marked the single biggest day ever in App Store sales history. These milestones follow a record-breaking 2014, in which billings rose 50 percent and apps generated over $10 billion in revenue for developers. To date, App Store developers have earned a cumulative $25 billion from the sale of apps and games. The introduction of iOS 8, the most significant iOS update ever, gave developers the ability to create amazing new apps and offers innovative features which proved wildly popular with App Store customers around the world.

Since its October release, Apple Pay has been a favorite of customers, merchants and app developers. More banks and credit unions continue to add support for Apple Pay, now representing about 90 percent of credit card purchase volume in the US. Leading merchants including Bloomingdales, Disney Store, Duane Reade and Walgreens are letting their customers enjoy the ease of use, security and privacy of Apple Pay. Some of the most popular apps including HotelTonight, OpenTable, Target and Ticketmaster are also enjoying the convenience and privacy of Apple Pay, making it even easier for users to make secure purchases.

Fwd:FT : Scientists hail antibiotic to foil resistance

--> could impact the all sector, mostly named involved in antiobiotic market, antiobiotic is a $40b to $50bil market...MRK made a big move on the antibio market with the Cubist acquisition, could be seen as -ve

NovaBiotic Pharmaceuticals develops new antibiotic, Teixobactin, to fight highly resistant MRSA infections (update) The new compound successfully destroyed MRSA and drug-resistant TB in cell cultures and in mice, and did so without any signs that the bacteria might become resistant to it. Teixobactin is still several years away from human trials and at least four years away from approval


From: LAURENT CHEKROUN (MAKOR SECURITIES LLP) At: Jan 8 2015 06:07:59
To: LAURENT CHEKROUN (MAKOR SECURITIES LLP)
Subject: Fwd:FT : Scientists hail antibiotic to foil resistance


Scientists hail antibiotic to foil resistance


An international public-private collaboration has come up with a promising antibiotic, to which bacteria are unlikely to become resistant for several decades. The drug, called teixobactin, quickly cleared infections in animal tests without side effects.
Although it is at least two years from clinical trials and five years from commercial availability, microbiologists hailed teixobactin as an exciting discovery at a time when politicians and public health leaders worldwide are flagging up the urgent need for drugs to tackle the problem of antibiotic resistance. Details are published in the journal Nature.
Teixobactin comes from a research partnership involving Northeastern University in Boston, the University of Bonn and NovoBiotic Pharmaceuticals, one of several US biotechnology companies developing antibiotics.

“We estimate that the evolution of resistance [to teixobactin] will take more than 30 years,” said Kim Lewis of Northeastern, the project leader. “It rapidly clears infection, so we will not need a lengthy regimen of treatment, and it shows excellent activity against hard-to-treat bugs.”
Most antibiotics are derived from soil bacteria, which make the chemicals to kill competing microbes. NovoBiotic has extended this approach with technology that enables researchers to grow species that would not survive in traditional laboratory cultures.
The scientists used a special “diffusion chamber” within the soil to culture microbes that would not grow in normal lab conditions. Screening of these rare species identified a previously unknown species, Elephtheria terrae, which makes teixobactin.
Teixobactin quickly kills Gram-positive bacteria, which are prominent in discussions of antibiotic resistance, including Clostridium difficile, Mycobacterium tuberculosis and Staphylococcus aureus.
Neil Woodford, head of the antimicrobial resistance unit at Public Health England, commented:
“The rise in antibiotic resistance is a threat to modern healthcare as we know it, so this discovery could potentially help to bridge the ever increasing gap between infections and the medicines we have available to treat them.”
But Prof Woodford added: “Although it is a step forward, this new discovery would not be suitable for treating infections caused by E. coli, Klebsiella or other Gram-negative bacteria.”
Teixobactin kills bacteria by breaking down their cell walls, a mode of action similar to vancomycin, which doctors sometimes use as an antibiotic of last resort to treat drug-resistant infections.

They hope that their original approach to bacterial cultivation and screening will soon yield other promising antibiotics, including ones active against Gram-negative bacteria.
“The screening tool developed by these researchers could be a ‘game changer’ for discovering new antibiotics as it allows compounds to be isolated from soil-producing micro-organisms that do not grow under normal laboratory conditions,” commented Laura Piddock, microbiology professor at the University of Birmingham.
Gerard Wright, an antibiotics researcher at McMaster University in Canada, added: “In a field dominated by doom and gloom [the NovoBiotic collaboration] offers hope that innovation and creativity can combine to solve the antibiotics crisis.”