>>> Brokers Upgrade & Downgrades - 11/09/2014

>>> Up
*ADMIRAL GROUP RAISED TO BUY AT NUMIS SECURITIES
*BWIN.PARTY DIGITAL RAISED TO EQUALWEIGHT AT MORGAN STANLEY
*DAELIM INDUSTRIAL RAISED TO BUY VS NEUTRAL AT GOLDMAN
*DIXY GROUP RAISED TO EQUALWEIGHT AT MORGAN STANLEY
*GENERALI RAISED TO NEUTRAL VS SELL AT CITI
*MONCLER RAISED TO BUY VS NEUTRAL AT UBS
*NORDGOLD RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*ORANGE RAISED FROM NEUTRAL TO OVERWEIGHT AT JPM
*RWE RAISED TO OUTPERFORM AT RBC CAPITAL
*TELECOM ITALIA RAISED TO OUTPERFORM AT MACQUARIE
*TELIASONERA CUT TO UNDERWEIGHT AT JPMORGAN
*TENARIS RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*TRYG RAISED TO CONVICTION BUY VS NEUTRAL AT GOLDMAN
*TUI TRAVEL RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*VOESTALPINE RAISED TO BUY VS HOLD AT BAADER

>>> Down
*CENTRICA CUT TO UNDERPERFORM VS SECTOR PERFORM AT RBC CAPITAL
*DIRECT LINE CUT TO HOLD VS ADD AT NUMIS
*EDP CUT TO UNDERPERFORM AT RBC CAPITAL
*ENAGAS CUT TO SECTOR PERFORM FROM OUTPERFORM AT RBC CAPITAL
*SANOFI CUT TO HOLD VS BUY AT BERENBERG
*TERNA CUT TO UNDERPERFORM FROM SECTOR PERFORM AT RBC CAPITAL
*VINCI CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*VIVENDI CUT TO NEUTRAL AT MACQUARIE

>>> PT changes


>>> Initiation
*BURFORD CAPITAL, JURIDICA INVESTMENT RATED NEW BUY AT LIBERUM
*EDENRED RATED NEW SELL AT BERENBERG; PT EU17
*LSE RATED NEW HOLD AT NUMIS; PT 2,074P
*NYRSTAR RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*POLYMETAL INTL RESUMED AT EQUALWEIGHT AT MORGAN STANLEY, PT SET AT 535P
*SPIRAX-SARCO RATED NEW UNDERPERFORM AT EXANE; PT 2,600P

>>> Call
>> Stock
* Beni Stabili, K+S, Vicat Enter SG Mid & Small Caps Premium List

(Die Welt) "This Apple Watch is much too feminine"

link to translation : {http://bit.ly/1whjtOu<go>}
Link to german article :{http://bit.ly/1tMahAB<GO>}

With the new Tech Watch Apple moves on a terrain dominated by old luxury brands. About the chances of the clock as style and status symbol here judges the traditional watch industry.

w the times, but similar. It was the evening of May 5, 1970, as US-talker Johnny Carson the Americans during the "Tonight Show" the first "wrist computer" presented the world premiere: The 27 red LEDs on the prototype of the "Pulsar" Hamilton was the time though Show only pressing a button, since for more The battery was not enough - and there was not even a date.

But two years later, the first digital watch world was still in series. Priced at $ 2100, there were at that time what today each clock from the chewing gum machine can, but in 18-carat gold case! The part looked like stolen from Stanley Kubrick Set, $ 150 was more expensive than a high-end Rolex. Tiffany in New York launched a nearly twice as expensive special edition and Roger Moore aka James Bond wore a Pulsar course in "Live and Let Die".

But who remembers this clock today? Nobody. The prices fell faster than the people could buy these things, the quartz revolution ate their first child.

Watches are actually collectibles
Around the same time, several thousand kilometers to the east, developed by the world almost unnoticed living in Switzerland French designer Gerald Genta for some of the most famous watch manufacturers outrageous modern designs. The Company: Patek Philippe, IWC and Audemars Piguet. The he designed steel watches models such as the Nautilus, the engineer and the Royal Oak were considered to be provocation.

teel was frowned upon for good mechanical watches. The latter Royal Oak from 1972 also was the first steel watch, which was more expensive because of their expensive housing and bracelet as a gold. And today? Are all these coveted collectibles, many times their purchase price value. The successor to be built today. These watches have survived the quartz crisis. Although similar models have then helped many other watch companies and not companies rows went bankrupt.

So the question is: Will now all luxury customers around the world rush to the "most personal product," according to the Apple CEO Tim Cook has ever produced? Or the competing product from Samsung, which was presented in early September at the IFA technology fair in Berlin and for the fashion label Diesel is offering a special leather belt? Will technology and luxury now merge in a new way?

Renzo Rosso is pleased with his Samsung Clock
Diesel CEO Renzo Rosso is convinced and sees a fundamental change: when suddenly the timing of seasonal fashion companies with which merges art-corporations, exciting new products come out. "We are already working on the next steps for the future," he announced at the launch of his leather bracelet during New York Fashion Week for the new, slightly curved Samsung Galaxy S. Gear

But are these products stand the test of time? Perhaps it would be to just not question trend researcher, but someone who is familiar with the 500-year history of the wrist watch - such as the new director of the Geneva watch museum of Patek Philippe , Dr. Peter Fries, who guards one of the oldest watch collections in the world.

He does not understand the fuss: "I would rather say it is a logical consequence that the computer moves to the arm until you had are those huge machines in front of him, who at the same time replaced the radiator, then they were in UPPERCASE, then. hand size., if permitted by the battery, there is only the possibility, they hang around your neck or on belt around the arm. thus makes the computer the same development through as once the clock, the first mechanical computer in the world. "

Fries is confident that Californians will shake up the market, "is precisely because of these computer things may have nothing to do with a mechanical clock are." And adds: "No one today wears a mechanical clock because of their function."

This can be the Apple Design by Marc Newson
But is a modern design? Just before the presentation was announced that the Australian designer Marc Newson, a close friend of Apple's creative head Jonathan Ive is working for Apple. That will watch connoisseurs have not wondered: Newson had already designed a futuristic Swiss Watches Ikepod for the brand, which have large similarities with this seamless designs of the current models. Whether this is a good omen? The company went bankrupt in 2003 because prices around € 10,000 for a gold clock were too expensive for an almost unknown brand.

Not even design legend Newson could not change. Speaking of Design Legend: If you look at the time display of the Apple Watch and familiar, immediately comes on two other design classics. Table alarm clock and watches from Braun, whose design has Apple's chief designer Jonathan Ive inspired the first calculator on the iPhone, must also have been modeled as the steering wheel in the form of a lift-crown. This has already shown us the company Ventura. Irony of history: These watches designed by the Swiss designer Hannes Wettstein. However, these designs could prevail only as a niche product.

It will not be easy for Apple , as previously entire markets can roll from behind the iPod, iPhone and iPad. Although it may all look easy in retrospect, Apple moves into ever more difficult terrain: The iPod had it since comparatively easily, 2001, there were just terrible alternatives that could play digital music formats, and with iTunes Steve Jobs created the critical infrastructure for music content. 2007 Apple was not more than the first iPhone came on the market alone.

Apple always wants to be first
A short time earlier LG had already presented a first mobile phone with touch screen in cooperation with Prada for example. But here, the Americans were far ahead in terms of usability: With the idea of ​​"apps" this time the necessary infrastructure even created all by itself.

Although the transfer to the iPad in 2010 appeared as a logical consequence, but here helps Apple to this day especially the closed operating system from the high competition. If we compare this to enter the market of Apple Watch in spring next year, you should keep in mind that Apple now competes not only against the big electronics giants from the Far East such as LG, Sony and Samsung, but also against more than 50 part 250 years old watches companies from Switzerland.

The see the thing quite obviously left. Jérôme Lambert, for example, is equal predestined in two ways to express themselves. He led not only to a year ago, the 181 years old watch brand Jaeger LeCoultre , but is currently trying very successful in German luxury goods group Mont Blanc, offering watches only for 17 years and became famous with fountain pens, to anchor high watchmaking.

He sees the Apple products rather than backers in the luxury class: "I'm im sure that such products the attention to detail in the subsequent generation trains so far, that they eventually as adults just fine mechanical watches will appreciate."

The Apple Watch as a model for a future watch fans?
This looks like Jean Claude Biver, head of watches division of three large manufactories to do so. He stands in front of the LVMH Group, Hublot, Tag Heuer and Zenith and know how hard it is to build a watch brand. He acquired it with Blancpain mid-eighties one of the oldest watch brands in the world, before he successfully sold to the Swatch Group.

He warns: "One should never underestimate a newcomer." Nevertheless, he goes hard with the Apple clock to task: "You make a few basic mistakes The clock has no sex appeal It is far too feminine and too similar to the others.. Smart Watches on the market Honestly. The looks as if they created a design student in the first semester. "

Will he, as announced in the press buy, anyway? "Yes, but not this model. Apple has to work. It looks almost as if they were born prematurely on the market one year. If the battery lasts ten days and it works even if I do not have my phone with me, then am I here. "

Biver they therefore not considered as an attack on the luxury watch segment, "This is a commodity that will be obsolete in a few years, luxury has always something timeless, is rare and gives Prestige A clock that is sold 40 million times and in ten.. years can not be repaired, can not be timeless. "

What actually expect Apple fans
And guess what the future customers or better those who already have a luxury clock? A first in-depth view of who the customers for the new Apple-clock could be, is a survey of "watch-Monitor", the most extensive consumer research to wristwatches in Germany: So give five percent of respondents are "safe" a Smart Watch from Apple to buy and 11 percent "very likely".

Of these potential customers almost every second person expects to need no other watch more in the future. Especially exciting: The clock comes especially with the people who are willing to spend significantly more than 1000 euros for a watch with interest. When clocks over 10,000 euros, 16 percent belong to the core target group. Of course, who can afford to watch for the value of a small car, looking at a 350-Euro-clock as nice gadget.

If you consider that German only spend around 60 euros for jewelry and watches per year, on average, the relative quickly. Is exciting that technology fell early adopters just obviously see today no contradiction in the fact once to wear fine mechanics and another time a new "wrist computer".

Apple could soon be the most profitable watch producers
Manuel Emch, CEO of the small manufacturer Romain Jerome, which produces quite oblique watches from salvaged parts of the Titanic or dials out of Icelandic volcanic rocks, waves his hand: "For the brands, as we only make a few thousand watches a year, it is always give purchasers. " Yet that is fundamentally something will change, he explained using a small computing practice: "Do not forget, if just 10 percent of all current 200 million iPhone 5 owners will buy such a clock, Apple makes as much revenue as the entire straightaway Swatch Group with its 18 brands, namely seven billion euros. "

Let it be 20 percent and Apple is suddenly with a dash of top-selling watch manufacturers in the world and as strong as Citizen, Seiko and Casio together. By comparison, the entire Swiss watch industry makes an annual turnover of around 18 billion euros. One thing is certain, it will change something.

U.S. TV host Johnny Carson commented on the way the initially described primal ancestor of the Smart Watch from 1970 in view of the exorbitant selling price snappy with the following words: "This clock shows you exactly when to go broke!" This set also contains some watches manager of today probably a bad aftertaste.

>>> US After Hours

After Hours Summary: JDSU +12.2%, MSON -10.1%, LFVN +8.0%, EOPN -24.0%, WTSL -10.1%, SYMX -8.3% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: JDSU +12.2%, MSON -10.1%, LFVN +8.0%, SIGM +5.0%, MW +2.2%

Companies trading higher in after hours in reaction to news: JDSU +11.9% (co announced plans to separate into two entities; reaffirmed Q1 guidance), LAND +7.7% (announced it elected to be taxed as a real estate investment trust), GOGO +4.5% (co and T-Mobile announced a new partnership to deliver free in-flight texting and voicemail to their customers on all Gogo equipped U.S. airline aircraft), EXXI +2.3% (strength attributed to speculation of Gulf of Mexico asset sale), MDVN +1.4% (received FDA approval of new indication for the use of XTANDI (enzalutamide) capsules for patients with metastatic castration-resistant prostate cancer)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: EOPN -24.0%, WTSL -10.1%, SYMX -8.3%, DLIA -7.0%, FIVE -5.3%, RH -4.6%

Companies trading lower in after hours in reaction to news: INVE -9.0% (announced proposed stock offering), TWTR -1.5% (announced $1.3 bln convertible unsecured senior note offering), JCP -0.1% (announced pricing of offering of senior unsecured notes, size increased to $400 mln from $350 mln)

>>> Asian Update

Asian Market Update: China CPI slows to 4-month lows; RBNZ holds cash rate; Australia monthly employment change hits record high

***Economic Data*** - (CN) CHINA AUG CPI Y/Y: 2.0% V 2.2%E (4-month low) - (CN) CHINA AUG PPI Y/Y: -1.2% V -1.1%E (30th consecutive y/y decline; first sequential decline in 5 months) - (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE AT 3.50%, AS EXPECTED; raises Q1 GDP forecast 3.2% from 2.7% - (AU) AUSTRALIA AUG EMPLOYMENT CHANGE: +121.0K V +15.0KE (36-year record high); UNEMPLOYMENT RATE: 6.1% V 6.3%E (first decline in 4 months) - (AU) AUSTRALIA SEPT CONSUMER INFLATION EXPECTATION: 3.5% V 3.1% PRIOR (first rise in 4 months) - (JP) JAPAN Q3 BUSINESS SURVEY INDEX (BSI) LARGE ALL INDUSTRY Q/Q: +11.1 V -14.6 PRIOR; BSI LARGE MANUFACTURING Q/Q: +12.7 (1-year high) V -13.9 PRIOR - (JP) JAPAN AUG TOKYO AVERAGE OFFICE VACANCIES: 6.0% V 6.2% PRIOR - (KR) South Korea Aug Bank Lending to Household (KRW): 497.0T v 492.0T prior - (UK) UK AUG RICS HOUSE PRICE BALANCE: 40% V 47%E (1-year low)

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 +0.4%, S&P/ASX -0.2%, Kospi -0.2%, Shanghai Composite +0.4%, Hang Seng -0.1%, Sept S&P500 -0.1% at 1,992

***Commodities/Fixed Income/Currencies*** - Dec gold +0.3% at $1,248, Oct crude oil +0.2% at $91.85/brl, Dec copper flat at $3.11/lb - GLD: SPDR Gold Trust ETF daily holdings rise 3.0 tonnes to 788.7 tonnes (first rise since Aug 20th) - JGB: (JP) Japan's MoF sells ¥2.46T in 0.2% (0.2% prior) 5-yr notes; Avg yield: 0.179% v 0.147% prior; Bid to cover: 3.69x v 4.87x prior - (KR) South Korea sells 5-yr bonds, avg yield 2.755% - (CN) PBoC to drain CNY10B in 14-day repos (14th consecutive drain); Drains net CNY5B this week v injected CNY7B prior (1st drain in 5 weeks) - (JP) Japan investors bought net ¥763.6B in foreign bonds v bought net ¥511.4B in prior week; Foreign Investors bought net ¥187.9B in Japan stocks v sold net ¥110.7B in prior week

***Market Focal Points/Key Themes*** - RBNZ held its cash rate on hold at 3.50% after 4 consecutive increases, just as forecasted by a unanimous survey of analysts. The accompanying policy statement was mixed - RBNZ affirmed 2014 GDP, raised Q1 2015 GDP, and cut its projections for 90-day bill rates to imply a pause until Q1 of 2015. NZD/USD fell about 40pips to new 7-month lows below $0.82 after RBNZ said NZD level is unjustified, unsustainable, and will likely fall significantly further. RBNZ Gov Wheeler did note that this is just a pause, and that the current rate of 3.5% is still below the "neutral level" of 4.5%. - BOJ Gov Kuroda and Japan PM Abe are reported to hold their first direct talks in 5 months amid chatter that Abe will push for more monetary easing to help offset the next round of sales tax hikes. Japan MoF put out its quarterly Business Survey Index hitting a 1-year high for large manufacturing, while also increasing its projections for FY14/15 corporate capex to 5.7% from 4.5%. - China inflation figures were generally soft, with CPI hitting a 4-month low and PPI coming in negative for the 30th straight month. China Stats Bureau cited the decline in material prices and warned the outlook for industrial demand is not optimistic, in addition to gradual slowdown in the economy translating into lower price growth. Consumer inflation was once again heavily tilted toward food prices, which rose 3% y/y compared to 0.2% for non-food items. - Australia employment saw a record high 121K net change - almost 9x consensus levels and the highest in the data series going back over 30 years. Unemployment rate fell for the first time in 4 months while labor participation rate hit a 16-month high. AUD/USD spiked up about 60pips on the data, rising above $0.9210, even as economists with UBS said the figures reflect "sample error" and would equate to 1.5M new jobs in the US. - President Obama delivered a statement to the nation on expanding the US air campaign against ISIS that will also target its militants in Syria. Obama further announced he is sending 475 more troops to Iraq, but continued to insist the personnel are for training/intelligence and will not have a combat mission.

***Equities*** US markets: - JDSU: To separate into two separate public companies; Reaffirms Q1 $0.08-0.12 v $0.10e, R$405-425M v $416Me- filing; +12.7% afterhours - GOGO: Gogo and T-Mobile Team Up to Deliver Free In-flight Texting and Voicemail to T-Mobile Customers; +5.1% afterhours - MW: Reports Q2 $1.10 v $1.06e, R$803.1M v $933Me; +2.2% afterhours - OREX: Orexigen receives FDA approval for weight loss pill Contrave; +0.7% afterhours - TMUS: CEO: Gross adds in August amounted to 2.75M, branded gross subscriber additions amounted to 2M; +0.6% afterhours - TWTR: To offer $1.3B (4% of market cap) in convertible notes - filing; -1.4% afterhours - RH: Reports Q2 $0.67 v $0.64e, R$433.8M v $454Me; Raises FY14 EPS guidance, cuts FY14 Rev guidance; -5.1% afterhours

Notable movers by sector: - Consumer Discretionary: Myer Holdings MYR.AU -7.9% (FY14 results; cuts final dividend) - Industrials: Worley Parsons WOR.AU +1.9% (guides margin to improve) - Technology: Hisense Electric 600060.CN +8.1% (unveils 100-inch laser TV); Dainippon Screen Manufacturing 7735.JP +2.5% (press on LCD business); Sharp Corp 6753.JP +1.5% (new products in China) - Healthcare: Sigma Pharmaceuticals SIP.AU -3.4% (H1 results; no div) - Utilities: Kyushu Electric Power 9508.JP +5.9%, Kansai Electric Power 9503.JP +3.0% (Japan aims to restart Sendai nuclear facility); Oki Electric Industry 6703.JP +1.1% (raises H1 guidance)

WSJ : Washington Trading Probe Broadens to Hedge Funds

Washington Trading Probe Broadens to Hedge Funds

SEC Examines Communications Between Investors and Height Securities After Alert on Health-Insurance Policy Shift

WASHINGTON—Federal investigators have uncovered a flurry of communications between Washington research firm Height Securities and several New York-based hedge funds, opening a new front in an insider-trading probe focused on the firm's 2013 investor alert about a change in government health-care policy.

The Wall Street Journal has previously reported that the Securities and Exchange Commission is investigating whether anyone in the government illegally leaked word of the announcement to the policy-research firm. Now, the agency is looking at whether hedge funds violated securities rules by trading on the resulting alert to Height Securities' clients.

According to people close to the investigation, the SEC has evidence of more than 20 phone calls, emails and instant messages between investors and analysts at Height Securities between the time the firm sent the email alert and when markets closed.

The communications involved at least four hedge funds: SAC Capital Advisors (now called Point72 Asset Management LP), Viking Global Investors LP, Visium Asset Management LLC and Citadel LLC.

The existence of phone calls and emails between Height Securities and its Wall Street customers in the moments before the government made its announcement wasn't previously known. Officials at Point72, Viking and Visium declined to comment. A lawyer for Height declined to comment but has said previously that the company did nothing wrong.

Katie Spring, a Citadel spokeswoman, said: "Our communication was for the sole purpose of verifying information contained in what we understood to be a broadly disseminated email, and was part of our compliance process specifically undertaken at the behest of our compliance team."

Ms. Spring declined to talk about any information that was shared between Height Securities and the hedge fund at the time.

There is nothing inherently illegal about investors talking with individuals at Height Securities about its research note. In fact, it would be normal for them to do so before making a large trade based on a research note. But investors could be liable for violating insider-trading rules if they knew the information was obtained illegally—or if they should have known that the information was obtained illegally. As a result, the information relayed in the communications between Height and the hedge funds is critical.

Investigators haven't alleged any wrongdoing on the part of Height or the hedge funds.

At issue is a series of events in the hours before the federal Centers for Medicare and Medicaid Services announced it would reverse course on planned funding cuts for private insurance plans. The shift was a boon to health-insurance firms, and their stocks went on a tear when news of it came out.

The probe has become the centerpiece of the SEC's efforts to investigate Washington's political-intelligence industry. Investigators believe it represents one of their best chances to determine whether or not the flourishing Washington business of ferreting out tips about policy changes for investors violates insider-trading laws.

The content of the communications between Height and its clients could help the SEC determine whether any of Height's investor clients violated the law in any trading of health-insurance stocks that day.

Under standard insider-trading rules, the SEC must prove that an investor traded on the basis of nonpublic, material information that was obtained in violation of a duty. Securities lawyers say the SEC can also pursue civil charges if investors "recklessly ignore a substantial risk" that they were trading on insider information.

"To pursue charges against the trader, the government would need to prove that he knew or had reason to know that the original tipper breached a duty by disclosing the information," said Justin Shur, a former federal prosecutor now with MoloLamken LLP. "Thus, figuring out what the trader knew about the source of the information is critical for prosecutors," he said.

That makes it important for the SEC to determine what information was relayed between Height Securities and its investor clients in the phone calls, emails and instant messages that followed its blast email.

At 3:42 p.m., on April 1, 2013, Height Securities sent an email alert to more than 150 investor clients predicting the government announcement. After markets closed, CMS sent a news release at 4:22 p.m. that day announcing that it would, indeed, restore the spending cuts.

In its filings, the SEC has said it is reviewing trading by 44 hedge funds and other investors who received the email alert from Height and traded shares in health-insurance firms ahead of the CMS announcement.

The SEC hasn't determined whether information relayed by Height Securities that day violated securities rules. Investigators are still looking into whether anyone in Washington broke insider-trading rules by relaying word of the government decision to Wall Street.

If no one violated securities rules in obtaining the information, then investors who traded based on Height's email wouldn't face any potential liability.

According to emails and documents made public as part of the investigation, a CMS official with knowledge of the decision spoke with a top congressional health-care aide in the days before CMS announced its decision.

That aide, Brian Sutter, later spoke on the phone about the decision with Mark Hayes, a health-care lobbyist who previously had worked for Height Securities. About 10 minutes later, at 3:12 p.m. on April 1, Mr. Hayes sent an email to Height Securities saying that informed sources told him CMS would reverse course on its planned funding cuts for private health insurers. The SEC has said in court papers it believes that Mr. Sutter could have been a source for Mr. Hayes's prediction.

A lawyer for Mr. Hayes said that his client "did not possess any nonpublic information" and "did nothing improper." A spokesman for Mr. Sutter declined to comment. A lawyer for Mr. Sutter has previously said that Mr. Sutter didn't share nonpublic information.

The SEC has also said it doesn't know if the CMS official who spoke with Mr. Sutter shared the news of the pending decision. In May, the SEC issued a subpoena to Mr. Sutter to compel him to turn over records related to his communications with CMS and the lobbyist.

Through lawyers for the U.S. House of Representatives, Mr. Sutter refused to comply with the subpoena. In June, the SEC filed a federal lawsuit seeking to force Mr. Sutter to turn over his records to investigators.

A federal judge is expected to issue a ruling on the case shortly.

(MergerMarket) AngloGold likely to price USD 2.1bn rights issue at deep discount

AngloGold likely to price USD 2.1bn rights issue at deep discount

AngloGold Ashanti’s (ANG:SJ) proposed USD 2.1bn rights issue will likely be deeply discounted due to the weak capital markets and poor gold price, said sector sources.

The gold mining major today, 10 September, announced that it plans to separate its international portfolio into a separate entity, Newco, to be listed in London.

In order to pursue the restructuring, AngloGold also signaled plans first to raise some USD 2.1bn through a rights issue, which will be used mainly to pay down existing debt.

Referring to recent rights issues by South African platinum players Lonmin and Aquarius Platinum, both of which were offered at a hefty discount, a sector banker said that AngloGold’s rights issue could be discounted by as much as 50%.

An industry source agreed that the rights issue would be deeply discounted. While Lonmin and Aquarius represent a different commodity class, their discounted rights issues point to “frothy” capital markets for resources.

Aquarius offered its recent USD 225m rights issue at a 66% discount.

The size of AngloGold’s rights issue could be of concern, said a buyside analyst. “The magnitude of the rights issue took everyone by surprise,” said the analyst.

However, both the banker and the analyst pointed to the strong cash generative potential of AngloGold’s local assets.

Should AngloGold succeed in its plans to raise USD 2.1bn and squash its debt, the company will be in a strong position to compete with South Africa’s Sibanye Gold in terms of attractive dividend payments, said a sellside analyst.

Sibanye Gold was formed last year when gold mining major Gold Fields unbundled its Kloof, Driefontein and Beatrix mines in South Africa.

Meanwhile, AngloGold is unlikely to acquire any new gold assets following the split of its international portfolio, according to a source close to the situation.

The South African entity will “sweat” its existing portfolio and, in the medium term, would consider diversifying into other commodities, said the source.

There are rich pickings in South Africa with a number of assets up for sale, including platinum assets to be sold by Anglo American Platinum, said a sellside analyst. In July, Anglo Platinum announced that it could exit its Rustenburg and Union mines through a sale or public markets exit.

Following the restructuring of AngloGold there is also the prospect of a potential deal between two of South Africa’s gold producers, said a second sector banker. “Ultimately to my mind there’s one too many South African gold producers – Harmony, Sibanye and AngloGold. Three will become two.”

AngloGold plans to execute the restructuring in 2015 although the move is still subject to a number of approvals including shareholder and regulatory approvals. Approval for the planned restructuring has been received the South African Reserve Bank, subject to various conditions. These include the requirement for South Africa to remain AngloGold’s effective place of management.

AngloGold has a market cap of ZAR 58.3bn (USD 5.4bn). AngloGold could not be reached for comment.

(Tech Crunch) Tinder’s Sean Rad Says He Has Not Swiped Right To Benchmark Or Oth

Tinder’s Sean Rad Says He Has Not Swiped Right To Benchmark Or Other Investors

Tinder Co-founder Sean Rad dodged a lot of questions on the Disrupt SF stage today, not least of which was the rumor that the hot dating app is raising a round at a valuation north of $750 million from Benchmark. “Rumors,” Rad stated when our MC Jordan Crook pressed him about it. “We haven’t raised any third-party capital and there’s no deal,” he told her.

Crook set the stage earlier, asking the co-founder if he knew what a DTR is; Rad was unfamiliar with the term. “It’s a way to define the relationship,” Crook explained. “I want you to have a DTR with IAC” (Tinder came out of IAC’s Hatch Labs in 2012, and IAC still owns a majority stake in the company). Rad sighed and said, “Tinder is like every other company and you have shareholders and you have controlling groups.

In our case IAC is the major shareholder and everyone has a major stake in Tinder’s success and we are aligned from the board down.” Crook mentioned the rumors that Rad and his team had been meeting with a lot of potential investors “Are you gonna raise money or not…or are you just wasting everybody’s time?” asked Crook. Rad shook his head and said, “We haven’t wasted anybody’s time.”

Crook also wanted to know how Tinder was planning on monetizing. “Uhhhh, you’ll find out,” Rad replied at first then after some cajoling added, “We think this is something that we will do. We have to ask does this help users, would we do this even if it didn’t make us money? We can add value to the user and charge them. A lot of people think there’s a conflict between making money and adding value and there isn’t.”

Rad, however, did not want to name a specific date on which Tinder might monetize. “We’ll get there when we get there.”

Rad did some more skirting around the Justin Mateen and Whitney Wolfe “co-founder” scandal that had plagued the company. Wolfe, an early employee of Tinder, had claimed Mateen sexually harassed her after the two broke up. Mateen is no longer with the company, and Tinder just settled the associated lawsuit.

“How would you define what is a co-founder,” Crook asked Rad. “There are so many definitions of what a cofounder is that therein lies the controversy. Some say it’s those who were there from the beginning. Then others say a co-founder is someone who’s had the largest contributions…My advice would be to be more inclusive. It doesn’t cost more to be inclusive. There are many people along the way who will have that transformative impact and all those people deserve to be recognized,” explained Rad.

Crook then went to the meat of it and asked him where that left Wolfe. “Whitney was hired early on to work on marketing and she did a phenomenal job, particularly to executing strategy on college campuses.”

“Okay thats a bit of a skirt,” Crook pointed out. Rad paused and then added, “It’s factual.”

Rad also revealed that there are now 1.2 billion swipes made and 13 million matches on Tinder on a daily basis.

“What I really want to know is how important is it to have a tiger in your photos?” joked Crook, pulling laughter from the crowd. “I have no idea where people are getting them,” Rad said.

>>> Twitter : To offer $1.3B (4% of market cap) in covertible notes

To offer $1.3B (4% of market cap) in covertible notes - filing 
- On September 10, 2014, Twitter, Inc. issued a press release announcing its intention to offer $650 million aggregate principal amount of convertible unsecured senior notes due 2019 and $650 million aggregate principal amount of convertible unsecured senior notes due 2021 in a private placement transaction to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. A copy of this press release is filed herewith as Exhibit 99.1 and is incorporated herein by reference. Related ()

>>> US Close Dow +0,32% S&P +0,37% Nasdaq +0,75% Russel +0,57%

Closing Market Summary: Technology Leads Stocks Higher

The stock market ended the midweek session on an upbeat note with the Nasdaq Composite providing leadership. The tech-heavy index advanced 0.8%, while the S&P 500 added 0.4% with seven sectors posting gains.

Equities were driven into the red shortly after the open due to notable weakness in the energy sector. The growth-sensitive group was down in excess of 1.0% during the first hour of action, but narrowed its loss to 0.3% by the close. For its part, crude oil fell 1.1% to $91.71/bbl, ending the pit session at its lowest level since early January.

While the continued weakness in crude prices weighed on the sector, which is now down 4.1% for the month, the persistence of dollar strength also contributed negatively to earnings prospects of multinational companies like Chevron (CVX 124.28, -0.90) and ExxonMobil (XOM 96.81, -0.58). The Dollar Index (84.22, -0.06) climbed to its best level in 14 months before slipping in the early afternoon. The greenback retreated against the British pound after latest poll results from Scotland indicated majority support for staying in the UK (weekend YouGov poll gave a slight edge to the pro-independence movement). The pound/dollar pair climbed to 1.6210 after trading at 1.6070 in the early morning.

Despite the early weakness in the energy sector, equity indices were able to climb off their lows with help from top-weighted financials (+0.4%), health care (+0.7%), and technology (+0.8%). The three groups began the day ahead of the broader market and their strength pulled dip-buyers into the fray.

The technology sector finished in the lead with Apple (AAPL 101.00, +3.01) fueling the strength. The top-weighted sector component jumped 3.1%, while social media names also did some heavy lifting. Twitter (TWTR 52.91, +2.30) rallied 4.5% following an upgrade at UBS, while Facebook (FB 77.43, +0.76) and Yelp (YELP 82.64, +1.76) gained 1.0% and 2.2%, respectively.

Elsewhere, health care received significant support from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 274.41, +4.93) jumped 1.8%, which factored into the strong showing for the Nasdaq Composite.

Also of note, the industrial sector (+0.1%) was pushed into the green during afternoon action by the relative strength of defense contractors. The PHLX Defense Index added 0.7%, while transport stocks could not keep up with the broader market. The Dow Jones Transportation Average added 0.1%.

Treasuries slumped overnight and spent the duration of the session near their lows. The 10-yr note shed eight ticks to send its yield higher by three basis points to 2.54%.

Participation was a bit light with fewer than 600 million shares changing hands at the NYSE floor.

Economic data was limited to just two data points:
  • The weekly MBA Mortgage Index fell 7.2% to follow last week's uptick of 0.2% 
  • Wholesale inventories increased 0.1% in July following a downwardly revised 0.2% (from 0.3%) increase in June 
    • The consensus expected an increase of 0.5% 
    • Overall, wholesale sales increased 0.7% in July after increasing by 0.4% in June 
Tomorrow, weekly initial claims (consensus 300K) will be released at 8:30 ET, while the Treasury Budget for August (expected deficit of $129 billion) will cross the wires at 14:00 ET.
  • Nasdaq Composite +9.8% YTD 
  • S&P 500 +8.0% YTD 
  • Dow Jones Industrial Average +3.0% YTD 
  • Russell 2000 +0.1% YTD