>>> US Close Dow -0,62% S&P -0,80% Nasdaq -1,14% Russel -1,53%

Closing Market Summary: Growth Concerns Pressure Equities

The stock market began the new trading week on the defensive note with small-cap stocks pacing the retreat. The Russell 2000 (-1.4%) and Nasdaq Composite (-1.1%) displayed relative weakness, while the S&P 500 lost 0.8% with all ten sectors ending in the red.

Global equities began showing some cracks overnight after China's Finance Minister Lou Jiwei poured cold water on hopes for new stimulus measures. Specifically, Mr. Lou said the government has no plans to change policies despite the recent string of disappointing data. A somewhat similar hawkish tone was conveyed by comments from Japan's Economy Minister Akira Amari, who said his country's government remains on track to implement another consumption tax hike.

The macroeconomic concerns have led to weakness in equities, while also weighing on growth-sensitive commodities like copper (-1.6% to $3.04/lb) and crude oil (-0.9% to $90.80/bbl). Unlike last week, the losses were not driven by a stronger dollar as the Dollar Index ended flat after wiping out its overnight decline.

Meanwhile, the weakness in crude prices spilled over to the energy sector (-1.4%), which slumped out of the gate and spent the entire day among the laggards. The sector widened its September loss to 5.6% and is now down 7.2% during the third quarter.

Similar to energy, the consumer discretionary sector (-1.5%) lagged from the start with high-beta names like Amazon.com (AMZN 324.50, -6.82), Netflix (NFLX 442.78, -14.74), Priceline.com (PCLN 1165.79, -20.33) exerting notable pressure. The three lost between 1.7% and 3.2%. Homebuilders also weighed on the sector following today's disappointing Existing Home Sales report. The iShares Dow Jones US Home Construction ETF (ITB 23.24, -0.50) lost 2.1%.

Elsewhere among cyclical groups, the financial sector (-0.7%) displayed relative strength in the morning, but settled just ahead of the broader market. The technology sector (-0.8%) also finished near the broader market, while industrials (-1.1%) were pressured by transports. The Dow Jones Transportation Average fell 1.4%.

Also of note, the materials sector (-0.1%) spent the bulk of the session in the green, but was pressured into negative territory by the close. The relative strength stemmed from a 33.2% surge in Sigma-Aldrich (SIAL 136.40, +34.03) after the company agreed to be acquired by Merck KGaA (MKGAF 93.70, +4.20) for $140.00/share, which represents a 37.0% premium to Friday's closing price.

On the countercyclical side, consumer staples (-0.2%) and telecom services (-0.1%) displayed relative strength, while utilities (-0.7%) ended near the S&P 500. For its part, the health care sector (-0.6%) outperformed even as biotechnology struggled. The iShares Nasdaq Biotechnology ETF (IBB 272.55, -2.68) lost 1.0%.

Treasuries ended near their highs after spending the day in the green. The 10-yr yield slipped one basis point to 2.56%.

Participation was in line with recent averages as more than 680 million shares changed hands at the NYSE.

Economic data was limited to the Existing Home Sales for August, which fell 1.8% to 5.05 million SAAR from a slightly downwardly revised 5.14 million SAAR (from 5.15 million SAAR) in July, while the consensus expected an increase to 5.20 million. The report revealed the first monthly drop in sales since March and overall sales are still down 5.3% year-over-year.

Tomorrow, the July FHFA Housing Price Index will be released at 9:00 ET.
  • Nasdaq Composite +8.4% YTD 
  • S&P 500 +7.9% YTD 
  • Dow Jones Industrial Average +3.6% YTD 
  • Russell 2000 -2.8% YTD

(BFW) Lew Says He Will Have Further Comment on Tax Inversions Today

Lew Says He Will Have Further Comment on Tax Inversions Today
2014-09-22 20:15:10.8 GMT


By Kasia Klimasinska
Sept. 22 (Bloomberg) -- U.S. Treasury Secretary Jacob J.
Lew comments during climate-change forum in Washington.
* Calls inversions “an unfair practice”
* Inversions “glaring loophole” in U.S. tax code: Lew

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WSJ :EMC Could Deal Investors a Weak Hand


EMC Could Deal Investors a Weak Hand

EMC is well versed in the merger game. But even experienced players can get caught with a bum hand.
A big corporate-technology provider struggling with slowing sales growth, EMC has reportedly entertained merger discussions with at least two peers who are in the same boat. Talks seem to have advanced the furthest with Hewlett-Packard, and at least some chats have been held with Dell, The Wall Street Journal reported. So far, nothing has come of such talks.
All three of these companies are trying to figure out how to juice their sales growth, and maybe they figure that bigger could be better. And big is certainly what any such combination would be: EMC's market capitalization is around $60 billion. So getting together with H-P, for example, would make for the largest tech merger on record, according to data from Dealogic.
But a deal of this size and this type would bring with it all the risks associated with huge business combinations. And the rewards would be less certain: Two slow-growth giants are unlikely to combine into a faster-growing one.
EMC is clearly shopping for options, though. It has activist hedge fund Elliott Management on its share register and agitating for change. Elliott's efforts focus mostly on getting EMC to spin out its VMware business as a separate company.
The odds on that happening are long, though, given EMC's continuing resistance to the idea. And rather than splitting, EMC's history is that of an acquisitive company, having announced nearly 50 deals in the past five years alone, according to FactSet. It also isn't above writing big checks, with at least eight $1 billion-plus deals under its belt.
More likely than a spinoff is EMC putting its sizable cash flow to work picking up new growth opportunities—in part to counter similar moves by rivals.
SAP's surprise acquisition of Concur Technologies for $8.3 billion, announced last week, may trigger a new wave of deal activity among large tech firms looking to add more sources of growth to their portfolios of businesses.
But these deals wouldn't be cheap: The price paid for Concur equated to an estimated 10 times forward sales, a record for SAP, according to Nomura.
What is clear is that EMC is considering several different paths. The pending retirement of Chief Executive Joe Tucci, due early next year, provides some impetus for change. But investors should be wary of options that offer high risk for an uncertain reward.

(BFW) Ray Investment to Sell 20.9m Rexel Shrs

BN 09/22 17:18 *JP MORGAN, SOCIÉTÉ GÉNÉRALE BOOKRUNNERS IN REXEL SHARE SALE
BN 09/22 17:17 *RAY INVESTMENT TO SELL ABOUT 7.13% OF REXEL SHR CAPITAL
BN 09/22 17:17 *RAY INVESTMENT WILL NOT HOLD REXEL SHRS POST SALE
BN 09/22 17:16 *RAY INVESTMENT TO SELL 20.9M REXEL SHRS
Ray Investment to Sell 20.9m Rexel Shrs
2014-09-22 17:22:06.786 GMT


By Robin Stringer
Sept. 22 (Bloomberg) -- Shrs represent ~7.1% Rexel capital,
according to a statement.
* Ray won’t hold any shrs once sale completed

Link to Company News:{RXL FP <Equity> CN <GO>}

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(BFW) *TESCO RATINGS MAY BE CUT BY FITCH AFTER NEWS ON OVERSTATEMENT

FII 09/22 16:04 Fitch Places Tesco on Rating Watch Negative
BFW 09/22 16:07 *TESCO RATINGS MAY BE CUT BY FITCH AFTER NEWS ON OVERSTATEMENT
BFW 09/22 16:07 *FITCH PLACES TESCO ON RATING WATCH NEGATIVE
BN 09/22 16:06 *FITCH ALSO CITES TESCO START OF REVIEW OF ISSUES
BN 09/22 16:06 *FITCH CITES ANNOUNCEMENT OF OVERSTATEMENT OF INTERIM PROFITS
BN 09/22 16:04 *FITCH PLACES TESCO ON RATING WATCH NEGATIVE
Tesco Rating May be Cut by Fitch
2014-09-22 16:06:59.753 GMT


By Sandi Friberg
Sept. 22 (Bloomberg) -- Rating actions follow announcement
of overstatement of interim profits, removal of full-year profit
guidance and initiation of review of these issues, Fitch says.

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Link to Company News:{TSCO LN <Equity> CN <GO>}

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(The Telegraph) Qatar will not host World Cup says German football chief Theo Zw

Qatar will not host World Cup says German football chief Theo Zwanziger

Fifa Executive Committee member Theo Zwanziger says he thinks the the 2022 World Cup will be taken away from Qatar because the scorching will be a danger to the players and visiting supporters


The 2022 World Cup will not be held in Qatar because of the scorching temperatures in the Middle East country, Fifa Executive Committee member Theo Zwanziger said on Monday.


"I personally think that in the end the 2022 World Cup will not take place in Qatar," the German told Sport Bild on Monday.


"Medics say that they cannot accept responsibility with a World Cup taking place under these conditions," the former German football (DFB) chief, who is now a member of the world soccer's governing body Fifa that awarded the tournament to Qatar in 2010.


Although wealthy Qatar has insisted that a summer World Cup is viable thanks to cooling technologies it is developing for stadiums, training areas and fan zones, there is still widespread concern over the health of the players and visiting supporters.


"They may be able to cool the stadiums but a World Cup does not take place only there," Zwanziger said.

"Fans from around the world will be coming and travelling in this heat and the first life-threatening case will trigger an investigation by a state prosecutor.

"That is not something that Fifa Exco members want to answer for."

Fifa officials said Zwanziger was not giving the view of the all powerful Executive Committee.

"He is expressing a personal opinion and he explicitly says so," Fifa spokewoman Delia Fischer said. "We will not comment on a personal opinion."

Fifa President Sepp Blatter said in May that awarding the World Cup to Qatar was a 'mistake' and the tournament would probably have to be held in the European winter.

"Of course, it was a mistake. You know, one comes across a lot of mistakes in life," he told Swiss television station RTS in an interview at the time.

"The Qatar technical report indicated clearly that it is too hot in summer, but the executive committee with quite a big majority decided all the same that the tournament would be in Qatar," he added.

Fifa is now looking to shift the tournament to a European winter date to avoid the scorching summer where temperatures routinely rise over 40 Celsius.

Asian Football Confederation (AFC) president Sheikh Salman Bin Ebrahim Al Khalifa chaired a meeting to discuss the matter earlier this month with the options of Jan/Feb 2022 and Nov/Dec 2022 offered as alternatives to June/July.

However, talk of a potential change away from the usual dates has resulted in plenty of opposition from domestic leagues around the world, worried the schedule switch would severely disrupt them.

Both Fifa and Qatar World Cup organisers have also been fending off questions of corruption ever since they were awarded the tournament back in 2010, while Qatar has also been criticised for the conditions provided for migrant workers' in the tiny Gulf state.

>>> TOTAL /RUBIS : Rubis in exclusive talks with Total to purchase its 50% holdi

Rubis in exclusive talks with Total to purchase its 50% holding in SARA, a refinery based in Martinique supplying the French Antilles and Guiana 
- Depending on final regulatory approval and third party shareholder preemptive right, Rubis, already a 35.5% shareholder in SARA, could ultimately increase its ownership to between 71% and 85.5%.
- SARA which operates in a Government regulated price system remains the main refining and fuel logistic asset in this geographical area, where Rubis is already present in fuels supply including LPG, jetfuel, bitumens and lubricants.
- This acquisition should build up Rubis' position in both the French Antilles and Guiana and beyond in the enlarged Caribbean region where Rubis is already active.
- In continuity, Rubis is committed to invest in this performing industrial asset and maintain high requirements in term of excellence and know how.

(BFW) Siemens-Dresser Deal ‘May Not Be the End’ for Compressor M&A: CS

Siemens-Dresser Deal ‘May Not Be the End’ for Compressor M&A: CS
2014-09-22 14:41:43.947 GMT


By Rachel Layne
Sept. 22 (Bloomberg) -- Siemens-Dresser Rand deal “may not
be the end” for Sulzer, which confirmed it was looking at
Dresser-Rand amid potential compressor M&A, Credit Suisse
analyst Julian Mitchell writes in note.
* DOV looking to expand fluids division via M&A
* SPW may also be interested in tie-up
* DRC value at ~14.5x 2015 EV/Ebidta by SIE GR, making IR’s
ongoing acquisition of CAM “look cheap”
* Transactions mark ongoing consolidation period in which
private equity/LBOs have purchased Sundstrand, GDI
businesses after SPW “came close to a deal”
* NOTE: Earlier, Sulzer says DRC talks terminated,
concentrating on other opportunities; Baird says DRC
unlikely to get competing bid
* NOTE: SIE GR bid for DRC at 14x consensus Ebitda: Bloomberg
Intelligence

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