>>> Asian Update

Asian Mid-session Update: BOJ raises economic assessment on industrial output, exports, and housing investment

***Economic Data***
- (NZ) NEW ZEALAND NOV ANZ ACTIVITY OUTLOOK: 37.3 V 41.7 PRIOR (1st decline in 4 months, 3-month low); ANZ BUSINESS CONFIDENCE: 30.4 V 31.5 PRIOR
- (NZ) NEW ZEALAND NOV CREDIT CARD SPENDING M/M: 0.3% V 1.5% PRIOR; Y/Y: 5.2% V 6.8% PRIOR
- (NZ) NEW ZEALAND NOV NET MIGRATION: 5.0K V 5.3K PRIOR
- (NZ) NEW ZEALAND NOV ANZ JOB ADS M/M: -0.1% V -0.3% PRIOR (2nd consecutive decline)
- (UK) DEC GFK CONSUMER CONFIDENCE: -4 V -1E (9-month low)
- (US) NORTH AMERICA NOV SEMI BOOK/BILL RATIO: 1.02 V 0.93 PRIOR (first time above parity in 3 months)

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +1.7%, S&P/ASX +2.2%, Kospi +1.4%, Shanghai Composite -0.5%, Hang Seng +1.1%, Mar S&P500 flat at 2,059

***Commodities/Fixed Income***
- Feb gold +0.2% at $1,197, Jan crude oil +0.6% at $54.42/brl, Copper +0.3% at $2.87/lb
- USD/CNY: (CN) PBoC sets yuan mid point at 6.1205 v 6.1195 prior setting (weakest Yuan setting since Dec 9th)
- (US) Weekly Fed Balance Sheet Total Assets for week ending Dec 17th: $4.50T v $4.49T prior; M1 y/y change: 9.6% v 9.7% w/w; M2 y/y change: 5.8% v 5.9% w/w

***Market Focal Points/Key Themes/FX***
- Broad-based risk-on rally that gave US stocks their biggest two-day gain of the year continued to reverberate in Asia. The recently oversold high-beta commodity sector of Australia has helped to pull the ASX200 by over 2%, with sharp gains in energy and metals. USD/JPY hit a fresh 1-week high of 119.40, helping Nikkei225 build on its gains. In China, Shanghai Composite was down in the morning session, but entered the final hour of trade with a new 4-year high above 3,100.

- Bank of Japan rate was the key risk event of the session. Despite the recent disappointment in GDP figures, the BOJ actually raised its assessment on Industrial Output, Exports, and Housing Investment. Policy settings remained unchanged otherwise, and board member Kiuchi was still the lone dissenter, favoring policy stance before Oct 31st easing. BOJ reiterated economy continued to recover moderately as a trend, but also added the "decline in demand following front-loaded increase before tax hike is waning as a whole." BOJ also said exports have shown signs of picking up and housing investment/industrial output are bottoming out. On inflation, the BOJ reiterated CPI expectations for the near term remain around 1%. Earlier, Fin Min Aso also noted Japan economy is continuing gradual recovery. Separately, a Nikkei report speculated the govt's fiscal stimulus is seen around ¥3.5, above ¥2-3T estimated initially. Cabinet is expected to approve the stimulus package as early as Dec 27th, with the Govt not expected to undertake any new debt issuance to fund the package.

- In China, the Stats Bureau revised up its 2013 GDP target by 3.4%, in line with earlier speculation, to reflect the latest census data. Chinese Yuan also remained under pressure against the surging greenback, with offshore Yuan extending losses through 6.2250 level - the weakest CNY levels since late June.

***Equities***
US markets:
- RHT: Reports Q3 $0.42 v $0.40e, R$456M v $451Me; +11.2% afterhours
- CTAS: Reports Q2 $0.86 adj v $0.78e, R$1.12B v $1.12Be; +7.3% afterhours
- XRX: To sell information technology outsourcing business to Atos for $1.05B; Cuts FY14, FY15 guidance as a result of the pending sale of the ITO business; +3.7% afterhours
- NQ: Reports Q3 -$0.19 v -$0.04 y/y, R$81.2M v $54.2M y/y; +2.2% afterhours
- GE: Selected by Cheniere for $1B Service Agreement for Sabine Pass LNG Export Terminal; +0.1% afterhours
- NKE: Reports Q2 $0.74 v $0.70e, R$7.4B v $7.16Be; -2.9% afterhours

Notable movers by sector:
- Consumer Discretionary: Skymark Airlines 9204.JP -4.5% (considers ending some domestic flights); Nomura Research Institute 4307.JP +2.9% (press speculation on 9-month results); Sydney Airport SYD.AU +3.8% (Nov Op result)
- Financials: Financial Street Holdings 000402.CN +3.7% (Anbang Insurance discloses 20% stake)
- Industrials: BYD Corp 1211.HK +18.6% (issues update: business under normal Op); China Railway Erju 600528.CN +10.0% (awarded contract; Nov Op result); Shanghai Construction 600170.CN +4.4% (awarded contract); Incitec Pivot IPL.AU +3.3% (executives comments in AGM); Downer EDI DOW.AU +5.2% (awarded major contract)
- Technology: FujiFilm Holdings Corp 4901.JP +3.2% (working on health care business); Samsung Electronics 005930.KR +4.2% (may raise dividend)

RTR - Fosun to make new Club Med counterbid on Friday


Dec 18 (Reuters) - China's Fosun International plans to raise its offer for Club Mediterranee on Friday to outbid Italian tycoon Andrea Bonomi, a source with knowledge of the matter said.

In what has become France's longest takeover battle, Chinese billionaire Guo Guangchang must decide whether to counter Bonomi's 24 euro-per-share offer, wich values the holiday group at 915 million euros ($1.12 billion).

Loss-making Club Med, which operates 66 resorts ranging from Caribbean beach villages to Alpine ski resorts, employs 23,000 people including some 4,000 in France.

Club Med and Fosun, which first offered 17 euros per share in May 2013, both declined to comment on Thursday.

But investors appeared to expect a counterbid from the Chinese conglomerate, with shares in the French company closing at 24.90 in Paris, up 42 percent since the start of the year.


Dec 18 (Reuters) - China's Fosun International plans to raise its offer for Club Mediterranee on Friday to outbid Italian tycoon Andrea Bonomi, a source with knowledge of the matter said.

In what has become France's longest takeover battle, Chinese billionaire Guo Guangchang must decide whether to counter Bonomi's 24 euro-per-share offer, wich values the holiday group at 915 million euros ($1.12 billion).

Loss-making Club Med, which operates 66 resorts ranging from Caribbean beach villages to Alpine ski resorts, employs 23,000 people including some 4,000 in France.

Club Med and Fosun, which first offered 17 euros per share in May 2013, both declined to comment on Thursday.

But investors appeared to expect a counterbid from the Chinese conglomerate, with shares in the French company closing at 24.90 in Paris, up 42 percent since the start of the year.

France's AMF market regulator has given Fosun until 1700 GMT on Friday to table a counterbid or throw in the towel

>>> US After Hours RHT +10.4%, NQ +6.4%, CTAS +6.2%, BGCP -2.7%, NKE -2.7% follo

After Hours Summary: RHT +10.4%, NQ +6.4%, CTAS +6.2%, BGCP -2.7%, NKE -2.7% following earnings/guidance
After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: RHT +10.4%, NQ +6.4%, CTAS +6.2%

Companies trading higher in after hours in reaction to news: PETX +22.6% (announced positive top-line results from AT-001 pivotal field study in client-owned dogs with osteoarthritis), ERS +2.4% (expanded working capital credit agreement to $275 mln), MEIP +1.7% (Point72 Asset Management disclosed 7.2% passive stake in 13G filing), TICC +1.3% (adopted a stock repurchase program of up to $50 mln worth of common shares), ALLY +1.1% (announced the U.S. Department of Treasury launched an offering to sell its remaining ~54.9 mln shares of Ally common stock)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: BGCP -2.7%, NKE -2.7%

Companies trading lower in after hours in reaction to news: TNK -5.6% (announced public offering of 20 mln shares of Class A common stock), MET -1.0% (co has been designated as systemically important by regulators, as expected), AA -0.9% (filed for ~36.5 mln share common stock offering by selling shareholders),

>>> US Close Dow +2,43% S&P +2,40% Nasdaq +2,27%

Closing Market Summary: Stocks Soar While Crude Oil Remains Pressured

The stock market ended the Thursday session on its high with the S&P 500 (+2.4%) extending its two-day advance to 88 points.

The key indices started the Thursday session on a sharply higher note after equity futures received an early morning boost, which took place after the Swiss National Bank imposed negative deposit rates (-0.25%). The central bank said the move is aimed at lowering the three-month LIBOR below zero and European investors viewed the announcement as a prelude to a sovereign QE program from the European Central Bank.

European equities, U.S. futures, and commodities rallied following the news, but crude oil fell victim to renewed selling interest after climbing above the $58.50/bbl level in the early morning. The energy component ended near its worst level of the day, down 4.0% at $54.19/bbl.

For its part, the energy sector (+2.1%) displayed relative strength at the start, but was pressured from its high by the intraday weakness in crude. Marathon Oil (MRO 27.56, +0.89) finished ahead of the sector, adding 3.3%, after lowering its 2015 capital, investment, and exploration budget by about 20.0% from this year's levels due to the recent plunge in the price of crude. The energy sector was the only group that could not climb above its morning high.

Outside of energy, consumer discretionary (+1.6%) and materials (+2.3%) were the only other cyclical groups that could not finish ahead of the broader market. A handful of quick-service restaurant names contributed to the underperformance of discretionary shares after Dunkin Brands (DNKN 43.05, -3.17) issued below-consensus guidance for fiscal year 2015. Shares of DNKN tumbled 6.9% while peers Krispy Kreme (KKD 18.98, -0.75) and Starbucks (SBUX 80.03, -0.41) lost 3.8% and 0.5%, respectively.

Elsewhere among cyclical sectors, technology (+3.0%) did some heavy lifting with a sizable assist from Oracle (ORCL 45.35, +4.19). The stock surged 10.2% in reaction to better than expected results while other large cap names like Apple (AAPL 112.65, +3.24), Microsoft (MSFT 47.52, +1.78), and IBM (IBM 157.68, +5.75) rallied between 3.0% and 3.9%.

Over on the countercyclical side, consumer staples (+2.0%), telecom services (+1.8%), and utilities (+2.0%) lagged while the health care sector (+2.8%) ended ahead of the broader market with help from biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 313.97, +10.59) spiked 3.5%.

Treasuries ended the day just above their lows with the 10-yr yield higher by seven basis points at 2.21%.

Participation was well ahead of average with more than 950 million shares changing hands at the NYSE floor.

Economic data included Initial Claims, Leading Indicators, and the Philadelphia Fed Survey:

* Initial jobless claims fell to 289,000 from a revised rate of 295,000 (from 294,000) while the consensus expected a decline to 292,000 

* Continuing claims fell to 2.373 million from 2.520 million 

* The Philadelphia Fed's Business Outlook fell to 24.5 in December from 40.8 in November while the consensus expected a decline to 26.0 

* While the index deteriorated across the board, it was coming off a high point that was simply not sustainable 

* The Conference Board's Leading Economic Index increased 0.6% for a second consecutive month in November after a downward revision (from 0.9%) to the October data 

* The Consensus expected an increase of 0.5% 

Tomorrow's session will be free of economic data.

* Nasdaq Composite +13.7% YTD  * S&P 500 +11.5% YTD  * Dow Jones Industrial Average +7.3% YTD  * Russell 2000 +2.5% YTD

WSJ : Several Top Islamic State Leaders Have Been Killed in Iraq, U.S. Says

Several Top Islamic State Leaders Have Been Killed in Iraq, U.S. Says
Three Key Islamic State Figures Were Killed in Recent Weeks, Chairman of Joint Chiefs Says

WASHINGTON—U.S. airstrikes have killed several very senior military leaders of Islamic State forces in Iraq, the Pentagon’s top uniformed officer disclosed Thursday.

Gen. Martin Dempsey, the chairman of the Joint Chiefs of Staff, said in an interview with The Wall Street Journal that three key Islamic State military leaders in Iraq were killed there in recent weeks during operations that are part of an expanding coalition effort ahead of a planned offensive next year.

The strikes in which the Islamic State leaders were killed were designed to hamper the group’s ability to conduct its own attacks, supply its fighters and finance its operations, Gen. Dempsey said.

“It is disruptive to their planning and command and control,” Gen. Dempsey said. “These are high-value targets, senior leadership.”

(BFW) Telecom Italia Said to Favor All-Stock Deal in a Tim-Oi Merger

Telecom Italia Said to Favor All-Stock Deal in a Tim-Oi Merger
2014-12-18 17:26:57.921 GMT


By Jim Silver
(Bloomberg) -- Telecom Italia leaning toward all-stock
offer through its Brazilian unit if it goes ahead with bid for
Oi, two people familiar tell Bloomberg’s Daniele Lepido.
* Telecom Italia wants indication from Brazil’s govt and
telecommunications regulator that they won’t block a merger
of Tim Participacoes with Oi before it makes a move, the
people said
* Telecom Italia, which owns 67% of Tim, is unlikely to make a
decision before February or March, they said
* A Telecom Italia spokesman in Milan declined to comment on a
potential offer for Oi

Link to full story: NSN NGSG0Q6S9728<GO>

For Related News and Information:
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First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Jim Silver in New York at +1-212-617-7342 or
jsilver@bloomberg.net
To contact the editors responsible for this story:
Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net

(BN) *TAMBURI TIP INCREASES INVESTMENT IN MONCLER THROUGH CLUBSETTE

BFW 12/18 15:49 *TAMBURI TIP INCREASES INVESTMENT IN MONCLER THROUGH CLUBSETTE
*TAMBURI TIP INCREASES INVESTMENT IN MONCLER THROUGH CLUBSETTE
2014-12-18 15:47:33.48 GMT



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{MONC IM Equity CN ITL <GO>} (Company News and Research)
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-0- Dec/18/2014 15:47 GMT