>>> Portugal Telecom: CMVM tells Isabel dos Santos to raise EUR 1.35/share bid;

Portugal Telecom: CMVM tells Isabel dos Santos to raise EUR 1.35/share bid; declines request for mandatory offer waiver
The CMVM Portuguese Securities Commission has informed Isabel dos Santos that her EUR 1.35 per share bid on Portugal Telecom (PT)) should be raised based on the six-month average PT stock price and has also declined her request for a mandatory offer waiver from the regulator. Full CMVM statement, in Portuguese, here.

Meanwhile, Diario Economico cited a spokesperson for dos Santos as saying the Angolan investor will decide today (18 December) whether to make a revised PT bid or abandon the process.
Regulatory Authority Press Release (Translated), Diario Economico

>>> What to look at today - 18th of December 2014

US Market closed higher with Russell up +3,10%, FOMC helped the market to rebound, As expected by some, the Fed removed the "considerable time" language from its policy statement, but that reference was replaced with a call for "patience," which essentially conveyed the same message. Above all, Chair Yellen reiterated that the central bank will remain data-dependent and reserves the right to accelerate, or defer, a rate hike in accordance with what the data are communicating about the progress being made toward the Fed's dual mandate (main point from Yellen : replace "considerable time" with "patient in beginning to normalize the stance of monetary policy" and also"patient" means the Fed will not begin normalization process 'at least for the next couple of meetings', and in the Q/A Yellen affirmed that a "couple" means "two") , the energy sector (+4.2%) paced the advance and ended near its high even as crude oil slumped into the close, ending higher by 1.0% at $56.44/bbl...volume were above average with more than 1bil shares traded...VIX @19,33 -17,99%...US After Hours ZAGG +16.3%, AKS +5.8%, JBL +4.6%, ORCL +4.5%, MLHR -5.8%, KEX -5.7% following earnings/guidance ...Havanes Cigars soon in the US...Thanks Mr President...Cuba normalisation could add few GDP points to the US...Nikkei is leading move in Asia after US perf. & Yellen comments...Chinese Yuan was a mover againt the USD, Q4 Beige Book suggested the economy is stabilizing as wages and job growth was stable and profitability recovered. Moreover, Beige Book recommended that the PBoC hold off on further easing...Nikkei +2.32%...Hang Seng +1.03%...Shanghai +0.32%

RUB/USD@ 60 Crude WTI @ $56,45 Brent $61.48

Eur$ 1,2338 S&P -0.01% EuroStoxx +0.95% Dax +0.87% SMI +0.60%

Macro :
- Fed Drops ‘Considerable Time,’ Pledges Patience on Rates
- China Beige Book Finds China’s Economy Stabilizing on Services
- Dark Pools in Spotlight as EU Moves to Fortify Financial Markets
- Obama Acts to End More Than Half-Century U.S.-Cuba Estrangement

Keep an eye on :
- ABBN VX : ABB Board Proposes Former Shell CEO Peter Voser as New Chairman
- CS FP : Axa added to Goldman Pan-Europe Conviction Buy List
- BALN SW : Baloise Says Schiltknecht to Be CEO of Basler Germany From May
- BARC LN : Barclays CEO Says Universal Banking Model Dead: FT
- CATL LN : XL Bid Would Be Good Outcome for Catlin, Makes Sense, UBS Says
- DEXB BB : Dexia Denies Talks With Bank of Jerusalem on Dexia Israel Stake
- ENEL IM : Italy said to weight stake sales in Co. subject to market
- ENI IM : Italy said to weight stake sales in Co. subject to market
- GET FP : France’s SNCF Studying Use of Eurostar Preemption Right: Echos
- GSZ FP : Belgium to Extend Life of Doel 1 and 2 Reactors to 2025: Tijd
- IIA AV : Immofinanz 2Q Net Loss EU14.6m; Sees Negative Ruble Impact
- NOVN VX : Novartis Sues Actavis Over Gilenya Patent Infringement
- PHIA NA : Philips Said to Get 4 Indicative Bids for Lumileds, FD Reports
- PTC PL : Dos Santos Has to Raise PT Bid to Avoid Mandatory Offer: CMVM
- SNE US : U.S. Said Set to Blame North Korea for Cyber Attack on Sony, Sony Cancels Release of ‘The Interview’ as Theaters Back Out
- SYNN VX : Syngenta Drops Suit Against Bunge on GMO Corn: Reuters

>>> Brokers Upgrades & Downgrades - 18th of December 2014

>>> Up
*CATLIN GROUP RAISED TO NEUTRAL VS SELL AT WESTHOUSE
*ING RAISED TO OUTPERFORM VS NEUTRAL AT MACQUARIE
*SANOFI RAISED TO BUY AT HAMBURGER SPARKASSE


>>> Down
*ADIDAS CUT TO SELL VS NEUTRAL AT GOLDMAN
*AVEVA CUT TO UNDERWEIGHT VS OVERWEIGHT AT JPMORGAN
*AVEVA CUT TO UNDERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*DAILY MAIL CUT TO NEUTRAL VS BUY AT CITI
*DEUTSCHE WOHNEN CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*EDENRED CUT TO NEUTRAL VS BUY AT UBS
*HEXAGON CUT TO UNDERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*INFORMA CUT TO SELL VS NEUTRAL AT CITI
*INTU PROPERTIES CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*LAND SECURITIES CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*MLP CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*ST. JAMES'S PLACE OFF GOLDMAN CONVICTION BUY LIST, STAYS BUY
*SHAFTESBURY CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*SIG DOWNGRADED TO HOLD FROM BUY AT GOODBODY
*TARKETT CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*TECHNIP CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE

>>> PT Changes


>>> Initiation
*BANKIA RATED NEW EQUALWEIGHT AT BARCLAYS, PT EU1.20
*CGG RESUMED UNDERWEIGHT AT BARCLAYS, PT EU6.20
*INTERCONTINENTAL HOTELS RATED NEW BUY AT BERENBERG, PT 2,750P
*LEGAL & GENERAL RATED NEW BUY AT JEFFERIES, PT 282P
*MONTE PASCHI RATED NEW HOLD AT SANTANDER
*TECHNIP RESUMED EQUALWEIGHT AT BARCLAYS, PT EU70
*TUI AG RATED NEW OVERWEIGHT AT BARCLAYS
*WARTSILA RATED NEW SELL AT DEUTSCHE BANK
*WENTWORTH RESOURCES RATED NEW BUY AT CANTOR FITZGERALD, PT 77P
*WHITBREAD RATED NEW BUY AT BERENBERG, PT 5,200P

>>> Call
>> Stock
*AXA ADDED TO GOLDMAN PAN-EUROPE CONVICTION BUY LIST
*ST. JAMES'S PLACE OFF GOLDMAN CONVICTION BUY LIST, STAYS BUY
*BUREAU VERITAS ADDED TO GOLDMAN PAN-EUROPE CONVICTION SELL LIST
*TRYG A/S OFF GOLDMAN CONVICTION BUY LIST, STAYS BUY
>> Sector
*EUROPEAN TELECOMS SECTOR RAISED TO OVERIWEGHT AT CREDIT SUISSE
*U.K., U.S. RETAILING SECTORS RAISED TO BENCHMARK: CREDIT SUISSE
*EUROPEAN LUXURY SECTOR CUT TO UNDERWEIGHT AT CREDIT SUISSE
*INVESTMENT BANKS SECTOR CUT TO UNDERWEIGHT AT CREDIT SUISSE
*GLOBAL TECH HARDWARE SECTOR CUT TO BENCHMARK AT CREDIT SUISSE

(ZeroHedge) China Prepares To Bailout Russia

China Prepares To Bailout Russia

Earlier this evening China's State Administration of Foreign Exchange's (SAFE) Wang Yungui noted "the impact of the Russian Ruble depreciation was unclear yet, and, as Bloomberg reported, "SAFE is closely watching Ruble's depreciation and encouraging companies to hedge Ruble risks." His comments also echoed the ongoing FX reform agenda aimed at increasing Yuan flexibility which The South China Morning Post then hinted in a story entitled "Russia may seek China help to deal with crisis," which which noted that Russia could fall back on its 150 billion yuan ($24 billion) currency swap agreement with China if the ruble continues to plunge, that was signed in October. Furthermore, two bankers close to the PBOC reportedly said the swap-line was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze.
As Bloomberg reported, earlier in the evening, China's Wang Yungui noted
  • *CHINA IS CLOSELY WATCHING RUBLE'S DEPRECIATION: SAFE'S WANG
  • *CHINA ENCOURAGES COS. TO HEDGE RUBLE RISKS, SAFE'S WANG SAYS
  • *REAL IMPACT OF RUBLE DEPRECIATION UNCLEAR YET, SAFE'S WANG SAYS
Adding that China plans sweeping reforms to promote FX flexibility.
Russia could fall back on its 150 billion yuan (HK$189.8 billion) currency swap agreement with China if the rouble continues to plunge.
If the swap deal is activated for this purpose, it would mark the first time China is called upon to use its currency to bail out another currency in crisis. The deal was signed by the two central banks in October, when Premier Li Keqiang visited Russia.
"Russia badly needs liquidity support and the swap line could be an ideal tool," said Bank of Communications chief economist Lian Ping.
The swap allows the central banks to directly buy yuan and rouble in the two currencies, rather than via the US dollar.
Two bankers close to the People's Bank of China said it was meant to reduce the role of the US dollar if China and Russia need to help each other overcome a liquidity squeeze.
China has currency swap deals with more than 20 monetary authorities around the world. Swaps are generally used to settle trade.
"The yuan-rouble swap deal was not just a financial matter," said Wang Feng, chairman of Shanghai-based private equity group Yinshu Capital. "It has political implications as it is a sign of mutual trust."
The rouble has lost more than 50 per cent against the US dollar this year, pushing Russia to the brink of a currency crisis, though measures announced by the central bank helped it recover some ground yesterday.
Li Lifan, a researcher at the Shanghai Academy of Social Sciences, said the swap would not be enough for Russia even if it is used in its entirety. "The PBOC might agree to extend something like 15 billion yuan initially as a way of showing China's commitment to Russia."
* * *
...as if to assure all involved parties that there will be enough capital support on both sides, the PBOC released a surprising announcement that the central banks of China and Russia signed a 3-year, 150 billion yuan bilateral local-currency swap deal today, according to a statement posted on PBOC website. Deal can be expanded if both parties agree, statement says. Deal aims to make bilateral trade and direct investment more convenient and promote economic development in 2 nations.
To be sure, some such as Bloomberg, are skeptical that the unprecedented pivot by Russia toward China as it shuns the west, will merely harm the Kremlin. Others, however, wonder: who will be left standing: Europe, with its chronic deficit of energy and reliance on Russia; or Russia, a country overflowing with natural resources, whose economy is currently underoing a dramatic and painful shift, as it scrambles to dissolve all linkages to the Petrodollar and face the Gas-O-Yuan?
* * *
Is 'isolated' Russia about to be bailed out by the world's largest economy China?
Perhaps, they already started...
But then again - with the BRICS currencies all turmoiling... (ZAR -22% not shown)
The punchline, however, is that using bilateral swaps, the BRICS are effectively disintermediating themselves from a Fed and other "developed world" central-bank dominated world and will provide their own funding.
We are pleased to announce the signing of the Treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of US$ 100 billion. This arrangement will have apositive precautionary effect, help countries forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements.... The Agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures.
Incidentally, the role of the dollar in such a world is, well, nil.
For those who have forgotten who the BRICS are, aside from a droll acronym by a former Goldman banker, here is a reminder of the countries that make up 3 billion in population.

>>> Asian Update

Asian Mid-session Update: Yellen's dollar rally helps Nikkei rebound; Yuan slumps on reports of more flexible currency regime

***Economic Data***
- (NZ) NEW ZEALAND Q3 GDP Q/Q: 1.0% V 0.7%E; Y/Y: 3.2% V 3.3%E
- (CN) CHINA NOV NEW HOME PRICES M/M: PRICES RISE IN 0 OF 70 CITIES V 0 PRIOR; Y/Y: PRICES RISE IN 2 OF 70 CITIES V 3 PRIOR

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +2.6%, S&P/ASX +1.0%, Kospi -0.4%, Shanghai Composite -0.3%, Hang Seng +1.3%, Mar S&P500 flat at 2,008

***Commodities/Fixed Income***
- Feb gold +0.3% at $1,197, Jan crude oil +0.2% at $56.58/brl, Copper flat at $2.87/lb
- SLV: iShares Silver Trust ETF daily holdings fall to 10,544 tonnes from 10,606 tonnes prior (lowest since Sept 13th)
- (JP) Japan investors sold net ¥610B in foreign bonds v sold net ¥847B in prior week; Foreign investors bought net ¥120B in Japan stocks v bought ¥482B in prior week
- JGB: (JP) Japan's MoF sells ¥1.10T in 1.2% (1.4% prior) 20-year JGBs; Avg yield: 1.145% v 1.276% prior; bid-to-cover: 3.71x v 2.88x prior
- (CN) PBoC won't conduct open market operations (OMO) in today's session (7th consecutive halt); Net zero position this week v injected CNY5B prior
- (CN) Yield of 7-day govt bond repurchase rate closed at 10.25% last night; Press citing massive money demand from IPO subscriptions

***Market Focal Points/Key Themes/FX***
- Nikkei225 is leading the regional rally as remarks from Fed Chair Yellen on policy intentions in 2015 have finally helped arrest the downward reversal in USD/JPY. FOMC replaced the "considerable time" component of its statement with the pledge to be "patient in beginning to normalize the stance of monetary policy" but also acknowledged further improvement in labor market conditions. A dovish dissent from Kocherlakota was also countered by hawkish dissents from Fisher and Plosser in a 7-3 vote. In terms of economic projections, the Fed raised 2014 outlook and lowered unemployment estimates for the next 3 years, but also lowered median fed funds rate forecasts (dots) for 2015, 2016, and 2017 by 20bps, 37.5bps, and 7.5bps respectively. The most concrete market reaction came during Yellen's testimony when she said that "patient" means the Fed will not begin normalization process 'at least for the next couple of meetings', and in the Q/A Yellen affirmed that a "couple" means "two". Traders took that remark to mean that the liftoff in rates could take place as early as in April - the 3rd in the sequence of upcoming FOMC meetings - sending the dollar sharply higher. USD/JPY hit a high of 119 in early Asia dealing - up 200pips from immediate post-FOMC lows - while EUR/USD and AUD/USD caved 150pips and 120pips respectively to 1.2320 and 0.8110.

- Chinese Yuan was also a notable mover against the dollar, as offshore trade moved above 6.21 level - the weakest Yuan level since late July. Coupled with firmer dollar, pressure on CNY was aided by reports the govt will be open to a more flexible fx rate and more willing to allow the currency to depreciate. Note that up until recently, possibility of greater flexibility on Chinese exchange rate would have led to a firmer CNY. November housing figures remained weak, with all-70 new home prices falling for the 7th consecutive month by -0.6%, albeit at a slower pace than -0.8% prior. On the year however, price decline accelerated to -3.6% v -2.5% prior. Despite evidence of the contrary in October, November, and early December economic data in China, Q4 Beige Book suggested the economy is stabilizing as wages and job growth was stable and profitability recovered. Moreover, Beige Book recommended that the PBoC hold off on further easing.

- Down under, RBA Quarterly Bulletin research notes said the current recovery in non-mining investment is weaker than in 1980s and 1990s, but still expected to pick up as growth in domestic demand recovers. RBA added that while some 60K jobs would be lost in resource construction sector, they will be absorbed by other sectors as skills are transferrable to residential and civil construction. In New Zealand, Q3 GDP came in above estimates at Q/Q: 1.0% V 0.7%E. Private consumption improved to 1.5% v 1.3% prior (revised up from 1.2%), and the decline in exports eased to -0.4% v -4.2% prior (revised down from -2.9%).

***Equities***
US markets/ADRs:
- ZAGG: Raises 2014 Guidance; Sees EBITDA $30-32M v $15-20M prior forecast; Rev $250-255M v $232Me (prior $225-235M); +17.3% afterhours
- TTPH: Announces Positive Top-line Results from Phase 3 IGNITE 1 Clinical Trial of Eravacycline in Complicated Intra-abdominal Infections; +14.5% afterhours
- JBL: Reports Q1 $0.55 v $0.47e, R$4.55B v $4.32Be; +5.6% afterhours
- AKS: Guides Q4 $0.05-0.10 v $0.04e; +5.2% afterhours
- ORCL: Reports Q2 $0.69 v $0.68e, R$9.60B v $9.54Be; Guides Q3 Non-GAAP EPS $0.69-0.74 v $0.73e (constant currency), Non-GAAP Rev +4-8% y/y v +4.5%e (implies R$9.7-10.1B v $9.73Be) - conf call; +5.1% afterhours
- APOG: Reports Q3 $0.47 v $0.48e, R$244.4M v $232Me; +0.9% afterhours
- MRO: Expects 2015 Capital Budget down 20% at $4.3-4.5B; +0.5% afterhours
- AMGN: Raises quarterly dividend by 30% to $0.79/shr, implied yield 1.9%; +0.4% afterhours
- STLD: Guides Q4 $0.38-0.42 (adj) v $0.45e; -0.4% afterhours
- KEX: Cuts Q4 $1.10-1.20 v $1.35e ($1.30-1.40 prior), Cuts FY14 $4.84-4.94 v $5.12e ($5.04-5.14 prior); -6.5% afterhours

Notable movers by sector:
- Consumer Discretionary: Fairfax Media FXJ.AU +3.6% (close to merger); Flight Centre Limited FLT.AU -7.9% (cuts guidance)
- Financials: Emperor Capital Group 717.HK -1.2% (FY14 results)
- Energy: Strike Energy STX.AU +9.5% (issues update on gas project)
- Industrials: Zhejiang Yonggui Electric Equipment 300351.CN +5.2% (awarded major contract); Transpacific Industries Group TPI.AU -5.4% (analyst action); Elders ELD.AU +4.8% (CEO comments on company's progress); Toyota Motor 7203.JP +3.3%, Honda Motor 7267.JP +2.0%, Nissan Motor 7201.JP +2.9% (Yen weaker after FMOC decision)
- Healthcare: China Medical System Holdings 867.HK +5.3% (acquires license for drugs)

>>> US After Hours: ZAGG +16.3%, AKS +5.8%, JBL +4.6%, ORCL +4

After Hours Summary: ZAGG +16.3%, AKS +5.8%, JBL +4.6%, ORCL +4.5%, MLHR -5.8%, KEX -5.7% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: ZAGG +16.3%, AKS +5.8%, JBL +4.6%, ORCL +4.5%, LUB +3.1%, BIOD +0.8%, APOG +0.1%

Companies trading higher in after hours in reaction to news: TTPH +14.5% (announced positive top-line results from Phase 3 IGNITE 1 clinical trial of Eravacycline in complicated intra-abdominal infections; achieves primary endpoint in first of two pivotal trials), ONNN +3.4% (announced CMOS operational amplifiers that deliver zero drift operation and quiescent current for front-end amplifier circuits and power mgmt designs), NAV +2.4% (Carl Icahn disclosed 19.99% active stake in 13D filing), EXAM +2.1% (to replace OPLK in the S&P SmallCap 600), AMGN +0.3% (increased quarterly dividend 30% to $0.79 from $0.61 per share)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: MLHR -5.8%, KEX -5.7%, HNT -1.8%, STLD -0.4%

Companies trading lower in after hours in reaction to news: GNW -5.4% (announced it is still in the process of completing its annual review of long term care insurance active life margins; anticipates communicating results on or before the company's fourth quarter earnings conference call), ELLI -5.4% (announced that mortgage refinancing volume rose 5% in November, the fourth straight month of increases, as mortgage interest rates continued to fall), AHS -2.3% (announced a definitive agreement to acquire Onward Healthcare, Locum Leaders, and Medefis from OGH, for a total purchase price of $82.5 mln)

(BN) Agilent’s Evolution Since Spinoff May Lead to Takeover: Real M&A


Agilent’s Evolution Since Spinoff May Lead to Takeover: Real M&A
2014-12-18 00:00:00.7 GMT


(For a Real M&A column news alert: SALT REALMNA <GO>.)

By Brooke Sutherland
(Bloomberg) -- Agilent Technologies Inc. may finally be the
right size for a takeover.
The $13 billion company completed the spinoff of its
electronic measurement business last month, the latest in a
series of moves to slim down since its separation from Hewlett-
Packard Co. about 15 years ago. Now, its narrowed focus on
faster-growing biological and chemical testing tools and its
strong emerging-markets presence could attract interest.
Agilent’s position in the market for tools that analyze
chemical mixtures is difficult to replicate and competitors that
want to be in the industry would be better off buying their way
in, said BTIG LLC. Danaher Corp., the $59 billion conglomerate
with billions to spend on acquisitions, could fill gaps in its
portfolio with an Agilent takeover, said FBR & Co. Thermo Fisher
Scientific Inc. is another potential suitor, according to
Jefferies LLC.
“With the two businesses split, the new Agilent becomes a
much cleaner potential acquisition target for a larger player in
the life-sciences space,” Brandon Couillard, a New York-based
analyst at Jefferies, said in a phone interview. “It’s one of
the most attractive businesses in the sector.”

Healthy Premium

Agilent may command about $48 a share, a 21 percent premium
to its closing price yesterday, based on similar deals, said
Tyler Howard, an analyst at Bellingham, Washington-based Saturna
Capital Corp., which oversees about $4 billion, including
Agilent shares. Ross Muken, a New York-based analyst at Evercore
ISI, estimates a price tag in the same range. He puts Agilent’s
fair value at $45 to $50 a share, and said any buyer would
probably have to pay a premium to that.
Representatives for Santa Clara, California-based Agilent
and Waltham, Massachusetts-based Thermo Fisher declined to
comment. A representative for Washington, D.C.-based Danaher
didn’t respond to a request for comment.
Since its split from Hewlett-Packard, Agilent has sold off
$6 billion in assets and completed two spinoffs of its own. That
includes this year’s initial public offering of its electronic
measurement business, Keysight Technologies Inc., which left
Agilent focused on life-science technology.
“One of the big issues with the combined company was there
was a lack of focus and they’d be better off separate -- well
now they are,” Michael Cuggino, president and fund manager at
Permanent Portfolio Family of Funds Inc. said in a phone
interview. “That makes them attractive as bolt-on acquisitions
to firms trying to gain share or to supplement existing business
lines.”
Cuggino helps oversee about $7 billion, including shares of
both Agilent and Keysight.

Market Leader

Agilent has a leading position in the market for liquid and
gas chromatography mass spectrometry tools, which are used to
analyze complex chemical mixtures for industries such as drug
research and food safety testing, said Dane Leone, a New York-
based analyst at BTIG. That’s a hard market to penetrate as a
new entrant, he said.
“Generally, buying someone with that pre-existing market
position is a better strategy,” Leone said.
That would be a motive for Danaher, which doesn’t have a
strong position in that area, said Ajay Kejriwal, a New York-
based analyst at FBR. The conglomerate could also cut costs and
improve profitability at Agilent by incorporating the company
into its management system, he said.

‘Deal Machine’

Danaher, the maker of everything from dental equipment to
water filters, has spent about $3 billion on takeovers since
May, including the $2 billion purchase of Nobel Biocare Holding
AG. That’s when Danaher Chief Financial Officer Daniel Comas
suggested it may have as much as $12 billion to spend on deals.
This month the company said it would be comfortable with
about $8 billion in M&A capacity. Kejriwal said he thinks it has
the ability to tackle a target as big as Agilent.
“This is a deal machine,” Kejriwal said. “They have this
capacity and we have not seen that capacity being utilized.
They’ve done some deals this year but nowhere close to what they
could be doing. This would make a lot of sense.”
Thermo Fisher also has the balance sheet to tackle a deal
of this size, and would be a logical suitor, said Couillard of
Jefferies. The $50 billion maker of life-sciences equipment paid
about $13.6 billion to acquire Life Technologies Corp. this
year.
Agilent may prefer to be an acquirer, rather than a target,
according to Michael Waterhouse of Morningstar Inc. If the
company lowers costs, improves profit margins and makes better
use of its balance sheet, a sale “doesn’t have to be in the
discussion,” Muken of ISI said.
Even so, the steps the company has taken to unlock
shareholder value have also made it a more attractive target.
“They’ve really been trying to reshape the portfolio such
that maybe it looks a little cleaner for potential acquirers as
well,” Howard of Saturna Capital said.

For Related News and Information:
Agilent Technologies to Split Into Two Public Companies
Danaher Investors Look for Deals as $12 Billion Idles: Real M&A
Spinoffs Tee Up Next Mergers as Breakups Beget Deals: Real M&A
Agilent M&A news: A US <EQUITY> TCNI MNA <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>

To contact the reporter on this story:
Brooke Sutherland in New York at +1-212-617-0448 or
bsutherland7@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman

>>> "A Couple Means Two" - Why This Is Important

"A Couple Means Two" - Why This Is Important
 
Moments ago, after Yellen earlier explained that the Fed may hike rates at any moment, and certainly not only during press-briefing days, she also explicitly, and very unexpectedly, said that the Fed will likely not hike for a "couple" of meetings. And when she was subsequently asked to explain what "a couple" means, she further explained that it means "two." As a reminder, this comes from a Fed chairwoman who had a trial by fire when, fresh after replacing Bernanke, she locked herself in the "6 month" calendar interval. In other words, she knows not to give the market a timing bogey. And still she did so. Which, quite explicitly, means that anything starting with the 3rd meeting, currently scheduled for April 28-29, 2015, and onward is very fair game and the market will be foolish to expect the Fed not to follow through with this warning, a Fed which is already dangerously close to losing all credibility it has.
And another way of stating it comes from Peter Tchir of Brean Capital. His take:
Looks like the April/May meeting could be the date.  3 reasons:

 

1) A couple means 2 - just stated
2) then could host a conference call on a non press conference meeting
3) she said, i keep telling the market what we are going to do, i wash my hands of the market if they won't listen

 

She also does not get about oil as transitory. She is remaining very consistent. Core is what matters. 

 

This is hawkish:

 

Trades:

 

Short treasuries 3 year in particular again
Short front end eurodollar futures
Short equities
Hit any last hy energy bond bids while they remain
Buy IG CDX23 protection (short)

(ZH) Will Putin's Next Step Be To Sell Gold?

Will Putin's Next Step Be To Sell Gold?
"Russia is at a critical juncture and given the sanctions placed upon them and the rapid decline in oil prices, they may be forced to dip into their gold reserves, if it happens it will push gold lower." That is what, according to some people Bloomberg has quoted, is in the cards.
Russia’s surprise interest-rate increase failed to stop the plummeting ruble. Another tool available to repair economic havoc caused by sanctions and falling oil prices: selling gold.

 

Russia holds about 1,169.5 metric tons of the precious metal, the central bank said last month. That’s about 10 percent of its foreign reserves, according to the London-based World Gold Council. The country added 150 tons this year through Nov. 18, central bank Governor Elvira Nabiullina told lawmakers. The Bank of Russia declined to comment on its gold reserves.

 

Russia’s cash pile has dropped to a five-year low as its central bank spent more than $80 billion trying to slow the ruble’s retreat. The currency’s collapse combined with more than a 40 percent tumble in oil prices this year is robbing Russia of the hard currency it needs in the face of sanctions imposed after President Vladimir Putin’s annexation of Crimea. A fall in gold prices signals that traders are betting that the country will tap its reserves, according to Kevin Mahn, who oversees $150 million at Parsippany, New Jersey-based Hennion & Walsh Asset Management.

 

“Russia is at a critical juncture and given the sanctions placed upon them and the rapid decline in oil prices, they may be forced to dip into their gold reserves,” Mahn said. “If it happens it will push gold lower.”
But others are less convinced.
“There are a number of ways that they could use their gold,” Robin Bhar, an analyst at Societe Generale SA in London, said today by phone. “They could use it as collateral for bank loans, or for loans from multi-lateral agencies. They could sell it directly in the market if they want to raise foreign-exchange” reserves, including to get more dollars, he said.

 

If Russia decides to sell, the figures to confirm the move wouldn’t be available for a few months, Bhar said.

 

Selling gold is usually “one of the last weapons” for central banks because some use the metal to help back their currencies, George Gero, a precious-metal strategist at RBC Capital Markets in New York, said in a telephone interview. “They are probably still accumulating gold and keeping it for a bigger crisis,” he said.
While some suggest the accumulation was "tradition" it is still nonetheless an impressive aggregation of the barbarous relic:
So given the efforts to build this gold-backing for their nation's currency, do we really expect Putin to now dump his physical: or perhaps more strategically suggest a true gold-backed currency and jawbone the currency that way?