(BFW) Cevian Capital Calls for Volvo VEC Spinoff: Dagens Industri


Cevian Capital Calls for Volvo VEC Spinoff: Dagens Industri
2014-09-17 07:00:27.379 GMT


By Niklas Magnusson
Sept. 17 (Bloomberg) -- Cevian Capital continues to call on
Volvo to divest its construction equipment unit, Dagens Industri
reports, without saying where it got the information.
* Cevian wants Volvo to spin off VCE unit and list it as a new
traded company, Dagens Industri says


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To contact the reporter on this story:
Niklas Magnusson in Stockholm at +46-8-610-0708 or
nmagnusson1@bloomberg.net

(Citi) European Autos: Model Behaviour 2015

Audi to be the next European Model Cycle play
* Model cycles matter – Model Cycles are a key element in Auto investing particularly for luxury brands. In this note, we
showcase our comprehensive annual review of new model launches through to 2017 to assess which OEM has the edge.
* MBC – MBC was the model story of 2014 but we believe that is well appreciated with it trading on c. 10x P/E vs. 7x for
VW on 15E. In general with MBC having renewed its C Class and expanded its SUV range there is less to say about
model renewal than there was a one year ago (even with a new E in 16E) and less of an investment story too, in our view.
* Audi advances – We see Audi (40% of VW group EBIT) and by extension VW as the next model cycle play in the sector
as Daimler’s star fades. Audi should have a younger fleet age than MBC’s by end 16E and by end 17E we see nearly its
entire fleet refreshed. As Daimler has shown, investors typically play this theme one year in advance reinforcing our VW
Buy case which we think gathers momentum into 2015.
* BMW Mix may improve – Even BMW which had been thought to be an uninteresting model cycle story has exciting mix
enhancing rollouts ahead through an extended SUV range and crucially a new 7 series (10% of EBIT we estimate) in 15E.
Indeed, we are more impressed by BMW than we were six months ago.
* JLR’s expansion – We see JLR as the biggest challenge to the German OEMs as it expands its Sedan offering with an
all new Jaguar XE (3 Series rival) in 2015 and next gen XF (5 series rival) in 2016. JLR also looks set to expand in SUVs.
* RNO cost savings – We think Model cycles matter less for RNO (Focus List) than any other European peer. Unlike Fiat
and PSA, it has few pretensions to enter the luxury end where model cycles matter more. Indeed, we think its model
cycles are more about cost management and see the likely 2015 C&D segment renewal as key to improved profitability.
* PSA’s sensible rationalization – We think PSA has learnt the lesson of RNO that fewer targeted models are more likely
to be a success than a broad range. PSA is going the opposite way to Fiat cutting models to 26 in 2022 on 2 platforms
from 45 on 7 currently. We still have concerns about the move upscale as we worry some peers are doing the same.
* Fiat’s risky proliferation – Fiat’s model age is finally coming down yet it is following a different path to PSA and Renault
by greatly expanding its range, this has inherent risks we believe in terms of capex and debt.

(UBS) Havas - Game of Growth; top line 2014, margin 2015

* Increase forecasts, remains on Media Most Preferred list
We increase our organic growth forecast for FY14 to 5.2% from 3% and forecast
margin expansion of 30bps for 2014 and 50bps for 2015 and 2016 as growth flows
through and near term investment in staff normalises. The strong trends in new
business and recent organic growth further underline the turnaround and we remain
confident into 2015; Havas remains on our Media Alpha Most Preferred List.

* Strong organic Q2 onwards
Given the strong first half performance, even if Havas reported flat organic for the
remainder of the year the overall FY growth would be 2.7%. The comparatives are not
tough (Q313 1.2% and Q413 1.6%) and account wins provide confidence that strong
growth will continue, therefore we increase our FY14 organic forecast to 5.2% from
3%. This change alone increases our earnings forecasts by 2% mid-term.

* FX turns tailwind
In Q1 the FX headwind for Havas was -€12m and in Q2 was -€14m; by the end of the
year it will likely be a tailwind. More proactive measures than the market expected from
the ECB and renewed US strength have led to a sharp depreciation in the Euro. A
weaker Euro has three impacts: 1) it boosts economic growth which helps the GDPlinked
agencies such as Havas, 2) it staves off deflation fears, and, 3) it supports
corporate profits which is also beneficial for the agencies as advertising is oft viewed as
a percentage of revenue. We highlight that FX could improve further.

* Valuation: PT increases to €7 from €6.9
Havas is the best performing agency year to date and is now trading on 15.5x 2015E
EPS vs. the subsector on 14.1x and 7.6X EV/EBITDA vs. the subsector on 9.0x. Our DCF
derived price target increases to €7 from €6.9 driven by our increased forecasts.

>>> What to look at today - 17/09/2014 "considerable time" effect

US Market Closed higher ahead of today's policy directive from the Federal Open Market Committee, WSj report concerning FOMC pushed mkt higher, Hilsenrath said FED will keep zero rate for a considerable time, rally was helped by PBoC announce to provide CNY500 billions to its top five banks through a short-term lending facility, Yen traded lower on rumor that Japan's government plans to lower its economic assessment in the sept. report due on Friday. volume were a bit higher @ 630m shares...VIX @ 12.73 -9.84%...After Hours on Earnings YCRW +10.1%, APOG +5.7% ADBE -4.4%, on News AUXL+43.1% ENDP +5.9%, NSPR +18.5%, FDX+0.5% RAX-16.2%, RTRX -10.3% PDLI -6.1% SXL -3.9%, PETX -3.4%...In Asia, Ahead of Friday's Cabinet Office monthly economic report from Japan, a Nikkei report forecasted the first downgrade in 5 months. Report attributed the shift to downside in private consumption caused by "typhoons and heavy rains" that depressed spending. PBoC injection in short term helped mkt too...Nikkei -0.03% Hang Seng +0.93% Shanghai -0.29%


Eur$ 1.2950 S&P -0.05% EuroStoxx +0.53% DAX +0.48% FTSE +0.21% SMI +0.52%

Macro
- France Ready to Sell Stakes to Avoid Debt at 100%/GDP: Echos (EDF, ORA, ADF, SAF, AIR, RNO, HO, UG, AREVA, AF, CNP, DEXB) - see attached for details
- Qatar may shift some investments away from Germany after being criticized by German politicians over labor practices and terrorist funding
- China Ministry of Land and Resources: largest oil and gas producers plan to raise annual shale gas production by 40% to meet national target
- EU28 August Car Registrations Rise 2.1% Y/y to 0.669m Units

Keep an eye on :
- AGN NA : Determines Stock Fraction Interim Dividend and Announces to Repurchase Shares to Neutralize Stock Dividend
- AIR FP : Airbus to Maintain A380 Build Rate Even as Buyers Grow Scarce
- BLT LN : Rio Tinto likely on Glencore's wish list - Australian Financial Review
- DBR SJ : De Beers Sees Strength in Global Diamond Demand: WWD
- HAV FP : Havas Acquires Sweden's Bizkit Wisely, Ireland's GT Media
- ITX SM : Inditex 1H Net EU928m; Est. EU909.8m, 1H Net Beats Ests., Ebitda In Line
- JAZSM : Orange Sees No Big Anti-Trust Hurdles for Jazztel: Figaro
- MBTN SW : Meyer Burger Offers Up to CHF100m Senior Unsecured Convertibles
- NOVN VX : Novartis to Present Data on Zykadia, Afinitor, Key Compounds
- NOVOB DC : Novo Nordisk Pays $19m to Settle Prandin Court Case, Borsen Says
- ORP FP : Orpea Confirms 2014 Sales Target as 1H Pretax Profit Rises 19%
- REC BB : Recticel Considers Capital Increase to Cut Debt, Standaard Says
- CFR VX : Richemont 5-Month Sales Growth Misses Ests.
- ROG VX : Roche Says Buying InterMune Doesn’t Signal Acquisitions: Reuters
- SAN FP : Sanofi, Myokardia to Develop Genetic Heart Disease Therapies
- SHP LN : AbbVie Sued by Shareholder Over $55b Shire Purchase
- US5 GY : Ultrasonic Falls 79% as CEO, COO Disappear, Cash Missing
- ZC FP : Zodiac Aero FY Sales Rise 7.2%, In Line With Est.

>>> Brokers Upgrades & Downgrades - 17/09/2014

>>> Up
*AQUARIUS PLATINUM RAISED TO OUTPERFORM AT RBC
*EBRO FOODS RAISED TO BUY VS NEUTRAL AT UBS
*ERAMET RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*ICAP RAISED TO NEUTRAL VS SELL AT UBS
*JOHNSON MATTHEY RAISED TO BUY VS HOLD AT BERENBERG
*SEB RAISED TO NEUTRAL VS SELL AT UBS
*STANDARD BANK RAISED TO OVERWEIGHT AT MORGAN STANLEY
*UPM-KYMMENE RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*VESUVIUS RAISED TO BUY VS SELL AT UBS

>>> Down
*BHP BILLITON CUT TO UNDERPERFORM VS NEUTRAL AT EXANE
*FIRSTRAND CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*MUNICH RE CUT TO UNDERPERFORM FROM SECTOR PERFPRM AT RBC
*NORDEA CUT TO NEUTRAL VS BUY AT UBS
*NEDBANK CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY

>>> PT Changes


>>> Initiation
*C&C RATED NEW BUY AT INVESTEC; PT EU5.45
*COM HEM RATED NEW SELL AT BERENBERG; PT SEK43
*ELIOR RATED NEW BUY AT NATIXIS, PT EU16.5
*MAN GROUP REINSTATED EQUALWEIGHT AT BARCLAYS, PT 120P
*NN GROUP RATED NEW BUY AT GOLDMAN, PT EU26
*NORSK HYDRO RATED NEW UNDERPERFORM AT CREDIT SUISSE; PT NOK34

>>> Call
>> Stock
*BASHNEFT EXITS UBS RUSSIA OIL & GAS MOST PREFERRED LIST
*DNB ADDED TO UBS EU BANKS MOST PREFERRED, SWEDBANK REMOVED
*HANDELSBANKEN ADDED TO TO UBS LEAST PREFERRED, RBS REMOVED
*HSBC ADDED TO UBS MOST PREFERRED, STANDARD CHARTERED EXITS
*ING ENTERS MOST PREFERRED BANKS/DIVERSIFIED FINS AT MS, ING REPLACES LSE AMONG MORGAN STANLEY PREFERRED NAMES

(Re/code) iPhone 6 Review: It’s a Winner - Walt Mossberg

After stubbornly resisting for years, Apple has finally joined the big-screen smartphone movement with its two latest models, the iPhone 6 and iPhone 6 Plus, which go on sale Friday. But it hasn’t just expanded the screens. It has radically redesigned the iPhone, making it thinner and more curved, and has beefed up everything from the screen to the performance to the battery life and wireless speed.
I’ve been testing the more mainstream of the two models, the 4.7-inch iPhone 6, for about a week now, and I think it’s a terrific phone. In my view, it’s the best smartphone on the market, when you combine its hardware, all-new operating system, and the Apple ecosystem whose doors it opens. That includes a new service called Apple Pay for buying goods in stores and online electronically via the phone; it’s due next month. Apple Pay will only work with these latest iPhones, and Apple’s forthcoming smartwatch.
But this review is just part of the story. While I’ve been testing the iPhone 6, my three colleagues on Re/code’s reviews team have been testing the rest of Apple’s new iPhone and iPhone-related products. Lauren Goode has the lowdown on Apple’s first phablet, the 5.5-inch iPhone 6 Plus, here. Katie Boehret reviews the new operating system, iOS 8, here. And Bonnie Cha’s take on the iPhone’s all-new onscreen keyboard, and its third-party competitors, is here.
Price
The iPhone 6 will start at $199 with a two-year contract for a 16 gigabyte model. Apple is raising the memory on the two higher-priced models, for the same prices they cost on the 5s. For $299, you get 64GB, up from 32GB, and for $399 you get a whopping 128GB, up from 64GB. Without a contract, the three versions cost $650, $750, and $850, respectively.
Which one to get?
Apple sees the iPhone 6 as the direct successor to the iPhone 5s, and as the more mainstream of the two models — a smartphone with a bigger screen and other improvements. So do I. The iPhone 6 Plus is really a different category, a cross between a smartphone and a small tablet, or “phablet.” If you love your iPhone, but want a significantly larger screen, I’d go with the regular 6. If you want something much, much larger — something different — and you love the iPhone, then the Plus is probably for you.
Vjeran Pavic for Re/codeHow the iPhone 6 compares (click to enlarge)
Design
Recent iPhones have rounded corners, but they have flat edges and a screen that stops sharply at the phone body’s edge. The iPhone 6 is thinner, and has curved edges. The screen’s borders also curve slightly to meet the body, and the areas to the top and bottom of the screen have been reduced. The power switch has been moved from the top to the side, for easier access on the taller phone.
The result is that Apple has managed to grow the screen’s real estate by 38 percent compared to the iPhone 5s display, while making the overall volume of the phone just 13 percent larger, and its footprint just 22 percent larger. In my tests, it still fit very comfortably in my hand, in the pockets of my jeans, and even in a shirt pocket.
AppleApple’s new iPhone 6 from all sides
Bigger screen
Apple last expanded the iPhone’s screen in 2012, when it gave the iPhone 5 a four-inch display, without making it wider, while actually reducing its weight and thickness. But even then, its screen was smaller than that of its chief competitor, the Samsung Galaxy S, which at the time had a 4.8-inch display.
That iPhone, and its four-inch successor, the 5s, proved very popular. At first, larger, wider phones seemed weird (I even compared holding the first Samsung Note to your face to “talking into a piece of toast.”) But for many people, especially in certain countries, the iPhone’s screen began to seem too small, as competing models appeared with bigger and bigger screens.
So the iPhone 6’s 4.7-inch screen is a catch-up feature.
But it’s very well done. It has the same 326 pixels per inch as the 5s, and a higher resolution that allows it to display 720p high-definition video (Apple now calls it the “Retina HD Display”). In my tests, text, photos and videos appeared clear, sharp and vivid, with great color that avoids the oversaturation I have found in some Samsung models.
Vjeran Pavic for Re/codeHow the iPhone has grown: The 5s (top), the 6 (middle), and the 6 Plus (bottom)
And, despite the larger screen, all my apps — by Apple and third parties — just worked. None that I tested looked distorted or blurry. Apple says its App Store now offers 1.3 million apps, a new high.
The iPhone 6 screen is still smaller than the display on the latest Galaxy, which measures 5.1 inches, but the new Apple is narrower, and substantially thinner and lighter, even though it’s made of metal, and not the plastic used by Samsung, which to me feels cheap.
Wireless
Apple says the new iPhones have faster Wi-Fi and faster cellular LTE. In my tests, I found the iPhone 6’s Wi-Fi speeds — both downstream and upstream — were roughly double those of the 5s, and about 25 percent faster than those of the Samsung Galaxy S5. But I saw little difference in LTE speeds, either on Verizon or AT&T. The 6 and 6 Plus also have a new type of very short-range wireless, NFC, to enable Apple Pay. This is another catch-up feature: Some other phones have had NFC for a while.
Battery
Battery life on phones depends heavily on how you use them. In my daily use, the iPhone 5s generally lasted from eight to 10 hours between charges. But during my week of testing, the iPhone 6 did better, going 14 or 15 hours. Most people will still have to charge it nightly, but won’t be hunting for plugs during the day.
Vjeran Pavic for Re/codeThe iPhone 5s (top) looks small compared to the new iPhone 6
Camera
The rear camera on the iPhone 6 remains at eight megapixels, but has a new sensor that improves focus and face detection. In my tests, photos were sharper, and brighter — especially in low light — than on the 5s. The front camera is also better, with a larger aperture and better sensor.
Two modes
Both of the new models come with a feature that allows you to switch the entire display between “Standard” mode and “Zoom” mode. In the former, the bigger screens are used to display more content. In the latter, you get larger text and images.
Keyboard
The keyboard is vastly improved. It now quickly predicts what your next word might be, and makes fewer errors. You can also substitute third-party keyboards. Both of these are catch-up features — Android phones already have them — but they are very welcome. In my tests, typing improved dramatically.
Oops
Late in my testing, I dropped the iPhone 6 Apple had lent me for this review. It fell flat on its screen from about five feet onto a concrete driveway when I got distracted while taking a photo. This was entirely my fault. But the entire screen was full of cracks. The phone continued to work perfectly, but Apple sent me another to complete my tests. The moral, which most iPhone users already know: Use a case.
Problems
I had only two problems with the iPhone 6 during my week of testing. First, its width and smooth back can make it feel a bit slippery in your palm until you get used to it (this was not the cause of my dropping incident, as I was holding it with two hands, but the moral above still applies.)
Second, I had trouble at first getting the iPhone 6 to work reliably with my car’s built-in Bluetooth. Apple gave me a solution, which involved removing old, unused devices from my far-larger-than-normal list of devices connected to iCloud. (The company said this had something to do with proper Bluetooth pairing on my particular car model.) But Bluetooth calling in the car worked fine after that. Apple says most customers aren’t likely to have this issue, but it is promising a bug fix soon.
Bottom line
The iPhone 6 is a great upgrade for current iPhone owners, or for anyone, really. It manages to provide a much larger display in a phone that’s still small enough to handle easily. It’s my recommendation for the best smartphone you can buy.

China Ministry of Land and Resources: largest oil and gas producers plan to rais

China Ministry of Land and Resources: largest oil and gas producers plan to raise annual shale gas production by 40% to meet national target - financial press 
- China aims share gas production 1.5Bcm for 2014, 6.5Bcm for 2015 and 15Bcm for 2017.
- Sinopec plans to invest CNY21.5B in shale gas drilling, targets 2015 production 3.5Bcm. 
- PetroChina plans to invest CNY11.2B, targets 2015 production 2.5Bcm

>>> Rio Tinto likely on Glencore's wish list

Rio Tinto likely on Glencore's wish list 

Rio Tinto, the UK and ASX-listed miner, may be a possible target for Swiss group Glencore, the Australian Financial Review reported.

Glencore is seeking acquisitions, and Rio Tinto has been mentioned recently as a potential target by investment bankers, the report said, while noting many fund managers consider the talk merely a thought exercise. The item noted that Bernstein Research said this week that Rio Tinto could be a logical target for Glencore.

The report cited Pengana Capital fund manager Tim Schroeders as saying that while Rio Tinto is likely of interest to Glencore, the buyer is not likely to make an offer, as at current valuations such a move would be aggressive.

Rio Tinto currently has a market value of AUD 109.2bn (USD 95.7m), while Glencore is worth AUD 84.8bn. The paper also noted that any deal between Rio and Glencore would likely encounter major regulatory obstacles.

Schroeders noted that Glencore’s management works with much lower quality assets than Rio Tinto does and Glencore would love to secure a portfolio of top quality assets.

Arnhem Investment Management’s Neil Boyd-Clark also said it is important to note that Glencore’s assets are of lower quality than Rio’s.


Source Australian Financial Review

>>> companies reporting figures in Europe this morning

* Inditex (ITX SM) pre-mkt, 1H. Preview
* Mediobanca (MB IM) afternoon, FY
* Orpea (ORP FP) 7am, 1H
* Richemont (CFR VX) 7:30am, sales. Preview
* Smiths Group (SMIN LN) 8am, FY
* Daily Mail (DMGT LN) 8am, 4Q sales
* DS Smith (SMDS LN) 8am, 1Q IMS
* IG Group (IGG LN) 8am, 1Q IMS
* Chemring (CHG LN) 8am, 3Q, IMS