>>> What to look at today - 15th of December 2014



From: LAURENT CHEKROUN () At: Dec 15 2014 07:40:09
Subject: >>> What to look at today - 15th of December 2014
US Market closed lower on weaker Crude market, the House of Representatives passed a $1.1 trillion spending bill to fund the government through September, IEA Reports didn't helped the crude to perform as the different declaration over the week end, crude still weak this morning traded as low as $56,25 this morning, Retailers benefit from this move but cyclicals ended in line with the broader market, Outside of energy, commodity-linked sectors like industrials (-1.8%) and materials (-2.8%) bore the brunt of the pressure while influential groups like financials (-2.0%) and technology (-1.5%) did little to stem the bleeding. the technology sector ended in-line with the market. Apple and IBM lost 1.6% and 3.5%, respectively, with the latter weighing on the Dow. On the upside,Adobe Systems surged 9.1% after reporting better than expected results...sell off happened in volume with 940mil shres traded...VIX @21.08 +4,98%...Asian markets followed US poor performance of Friday session...Japan's ruling LDP party passed the snap elections test with flying colors, retaining the 2/3 supermajority with about 326 seats in the 475-seat lower house of Parliament. Govt officials have indicated that all cabinet posts will be unchanged, while cabinet sec Suga noted economic revival remains the govt's top priority. Separately out of Japan, BOJ's Q4 Tankan survey saw Manufacturing slip by a point to +12 and Outlook miss consensus by 3pts at +9. Industrial CapEx growth was higher than expected however, and Non-Manufacturing sectors were slightly better than expected. BOJ noted the relative underperformance of smaller sector of the economy demonstrates the impact of weak Yen on business sentiment...Out of China, the 2015 macroeconomic forecast issued by the PBoC saw 2015 GDP potentially slowing to 7.1% and CPI to 2.2% vs their 2014-end estimates of 7.4% and 2.0% respectively...Nikkei -1,42%...Hang Seng -1,12%..Shanghai -0,74%

Eur$ 1,2444 S&P +0,44%

Macro :
- OPEC El-Badri: OPEC has no set price for oil; Failure by members to invest may push the prices back above $100/brl again 
- ECB's Weidmann (Germany): Risk of spiralling deflation is very low; Current falling prices due to energy-cost decrease
- Goldman Sachs analyst: Some evidence oil market is rebalancing but far from sufficient - Sees Venezuela helping rebalancing in 2015

Keep an eye on :
- GET FP : Eurostar attracts offers from CIC and GIC
- ICAD FP : Icade sells 36 Mr. Bricolage stores to Tikehau Capital for EUR 126m
- JMAT LN : Asahi Hd to buy Johnson Matthey Gold & Silver for $186m
- KER FP : Kering appoints Marco Bizzarri as CEO of Gucci; seeks new creative director
- OMV AV : OMV to squeeze out other shareholders in OMV Petrol Ofisi
- ORA FP : EE eyed for takeover by former CEO Tom Alexander if BT opts against deal
- VOW3 GY : Bentley Chief Due

>>> brokers Upgrades & Downgrades - 15th of December 2014

>>> Up
*LONZA RAISED TO BUY VS NEUTRAL AT UBS

>>> Down
*BHP BILLITON CUT TO ’UNDERPERFORM’ AT RBC CAPITAL
*DEUTSCHE ANNINGTON CUT TO HOLD VS BUY AT BANKHAUS LAMPE
*DRAX CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*FERREXPO CUT TO UNDERPERFORM AT CREDIT SUISSE
*GAZPROM CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*GREENE KING CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*RPS GROUP CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*SEB CUT TO UNDERWEIGHT VS NEUTRAL AT HSBC
*SWEDBANK CUT TO UNDERWEIGHT VS NEUTRAL AT HSBC
*VEDANTA CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
*VOESTALPINE CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE


>>> PT changes
*D’IETEREN PT CUT TO EU34 FROM EU35 AT ING

>>> Initiation
*EURONEXT RATED NEW OUTPERFORM AT RBC, PT EU30
*GREEN REIT RATED NEW NEUTRAL AT CREDIT SUISSE, PT EU1.48
*HIBERNIA REIT RATED NEW NEUTRAL AT CREDIT SUISSE, PT EU1.21
*MOLECULAR PARTNERS RATED NEW OVERWEIGHT AT JPMORGAN, PT CHF33

>>> Call

>>> What to look at today - 15th of December 2014

US Market closed lower on weaker Crude market, the House of Representatives passed a $1.1 trillion spending bill to fund the government through September, IEA Reports didn't helped the crude to perform as the different declaration over the week end, crude still weak this morning traded as low as $56,25 this morning, Retailers benefit from this move but cyclicals ended in line with the broader market, Outside of energy, commodity-linked sectors like industrials (-1.8%) and materials (-2.8%) bore the brunt of the pressure while influential groups like financials (-2.0%) and technology (-1.5%) did little to stem the bleeding. the technology sector ended in-line with the market. Apple and IBM lost 1.6% and 3.5%, respectively, with the latter weighing on the Dow. On the upside,Adobe Systems surged 9.1% after reporting better than expected results...sell off happened in volume with 940mil shres traded...VIX @21.08 +4,98%...Asian markets followed US poor performance of Friday session...Japan's ruling LDP party passed the snap elections test with flying colors, retaining the 2/3 supermajority with about 326 seats in the 475-seat lower house of Parliament. Govt officials have indicated that all cabinet posts will be unchanged, while cabinet sec Suga noted economic revival remains the govt's top priority. Separately out of Japan, BOJ's Q4 Tankan survey saw Manufacturing slip by a point to +12 and Outlook miss consensus by 3pts at +9. Industrial CapEx growth was higher than expected however, and Non-Manufacturing sectors were slightly better than expected. BOJ noted the relative underperformance of smaller sector of the economy demonstrates the impact of weak Yen on business sentiment...Out of China, the 2015 macroeconomic forecast issued by the PBoC saw 2015 GDP potentially slowing to 7.1% and CPI to 2.2% vs their 2014-end estimates of 7.4% and 2.0% respectively...Nikkei -1,42%...Hang Seng -1,12%..Shanghai -0,74%

Eur$ 1,2444 S&P +0,44%

Macro :
- OPEC El-Badri: OPEC has no set price for oil; Failure by members to invest may push the prices back above $100/brl again 
- Abe Faces Policy Balancing Act After Commanding Election Victory
- United Kingdom Affirmed at AA+ By Fitch
- ECB Poised to Move to QE in Early 2015, S&P Economists Reiterate
- Greece Close to Exiting Bailout Program: Samaras in Real News
- ECB's Weidmann (Germany): Risk of spiralling deflation is very low; Current falling prices due to energy-cost decrease
- Qatar Stocks Enter Bear Market as Dubai Erases 2014 Gains on Oil
- Germany Plans to Cut KfW Subsidies for Coal Plant Exports: FAZ
- Goldman Sachs analyst: Some evidence oil market is rebalancing but far from sufficient - Sees Venezuela helping rebalancing in 2015

Keep an eye on :
- AC FP : Accor, China Lodging Agree Long-Term Alliance
- AI FP : Technip Plans to Buy Air Liquide’s Zimmer Polymer Technologies
- AIR FP : Airbus to Hand Over First A350 to Qatar on Dec. 22, Cos. Say
- ALV GY : Manulife & Allianz to Co-Invest Up to $1b in U.S. Real Estate
- ALO FP : Alstom’s Kron Seen as Possible Candidate for Sanofi Top Job: JDD
- ATCOA SS : Atlas Copco Sees ’Tougher’ 2015 for South Africa Mining: SVD
- BBY LN : Balfour Beatty to Receive >GBP1b Laing Offer in New Yr: Times
- O2C GY : C.A.T. Oil Says Bid Document Contains Errors
- CGG FP : Technip Doesn’t Intend to File a Tender Offer for CGG
- CBK GY : Commerzbank to Raise Prices for Corporate Clients: Handelsblatt
- GET FP : Eurostar attracts offers from CIC and GIC
- ICAD FP : Icade sells 36 Mr. Bricolage stores to Tikehau Capital for EUR 126m
- JMAT LN : Asahi Hd to buy Johnson Matthey Gold & Silver for $186m
- KER FP : Kering appoints Marco Bizzarri as CEO of Gucci; seeks new creative director
- LHA GY : Lufthansa Board Split on Future of Core Business, Spiegel Says
- NVTK LI : Novatek may get 150b Rubles From Wealth Fund in Jan.: Vedomosti
- OMV AV : OMV to squeeze out other shareholders in OMV Petrol Ofisi
- ORA FP : EE eyed for takeover by former CEO Tom Alexander if BT opts against deal
- UG FP : Peugeot Citroen May Produce Engines Outside France, Echos Says
- POM FP : Plastic Omnium’s 2014 Profitability Should Beat Last Year’s 7.7%
- ROG VX : Roche Says Cobas Can Screen Transplant Organs for HIV, Hepatitis
- SGO FP : Saint Gobain Wants Sika Mgmt to Stay, Haelg Tells SchweizAmS
- SAN FP : Alstom’s Kron Seen as Possible Candidate for Sanofi Top Job: JDD
- SIK VX : Saint Gobain Wants Sika Mgmt to Stay, Haelg Tells SchweizAmS
- SYNN VX : Syngenta Expects China Approval for MIR 162 Corn in Near Future
- TEC FP Technip Doesn’t Intend to File a Tender Offer for CGG
- TEC FP : Technip Plans to Buy Air Liquide’s Zimmer Polymer Technologies
- TEF SM : Telefonica Aims to Improve German Network Quality: Handelsblatt
- TSCO LN : Tesco Planning Disposal of Unused Properties: Sunday Telegraph
- VOW3 GY : Bentley Chief Due

(BFW) Technip Plans to Buy Air Liquide’s Zimmer Polymer Technologies

BUS 12/15 06:00 Technip Announces Plans to Acquire Zimmer Polymer Technologies
BN 12/15 06:00 *TECHNIP REPORTS PLANS TO BUY ZIMMER POLYMER TECHNOLOGIES
Technip Plans to Buy Air Liquide’s Zimmer Polymer Technologies
2014-12-15 06:36:38.890 GMT


By Jurjen van de Pol
(Bloomberg) -- To buy Frankfurt-based business from Air
Liquide Global E&C Solutions Germany including 40 staff.

Link to Statement:Link
Link to Company News:{TEC FP <Equity> CN <GO>}
Link to Company News:{AI FP <Equity> CN <GO>}

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

To contact the reporter on this story:
Jurjen van de Pol in Frankfurt at +49-69-9204-1104 or
jvandepol@bloomberg.net

To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net

>>> OMV to squeeze out other shareholders in OMV Petrol Ofisi

OMV to squeeze out other shareholders in OMV Petrol Ofisi

OMV, the Austrian energy company is planning to squeeze out other shareholders in the Turkish petrochemicals company OMV Petrol Ofisi.

According to a stock exchange announcement, OMV will have to offer, the highest of:
1) The average share price during the 30 days following the first disclosure of the intentions to launch the offer, which is TRY 4.5 a share;
2) Pricing found by the evaluation report prepared for the offer, which is TRY 4.53 a share;
3) The average of the six-monthly, yearly and five-yearly average share price for the company, which are TRY 4.38, TRY 4.57 and TRY 5.12 a share respectively.
OMV will therefore offer TRY 5.12 (USD 2.22) per share.


--> Link to official annouvcement (In turkish) : {http://www.kap.gov.tr/api/Bildirim.aspx?id=400793&imza=imzali{

>>> EE eyed for takeover by former CEO Tom Alexander if BT opts against deal

EE eyed for takeover by former CEO Tom Alexander if BT opts against deal
EE’s former chief executive, Tom Alexander, is interested in a takeover of the UK-based mobile-phone network operator, The Daily Telegraph reported. The report said neither Alexander, nor the private-equity houses Apax and KKR, which are also eyeing EE, are prepared to play the role of stalking horse if BT seeks to acquire the business. They would rather wait for EE’s owners, Deutsche Telekom and France-based Orange, to decide how to proceed in the event that BT walks away.

BT is expected to announce within the coming days whether it plans to acquire EE or its rival O2; O2 is believed to be the more likely target but a deal with EE remains a possibility, according to people with close links to the situation.
Daily Telegraph

>>> Asian Update

Asian Mid-session Update: Abenomics mandate affirmed as ruling LDP retains supermajority; Australia widens budget deficit forecast


***Economic Data***
- (JP) JAPAN Q4 TANKAN MANUFACTURING INDEX: 12 V 13E; LARGE ALL INDUSTRIAL CAPEX Y/Y: 8.9% V 8.1%E; LARGE MANUFACTURING OUTLOOK: 9 V 13E
- (AU) AUSTRALIA NOV NEW MOTOR VEHICLE SALES M/M: -0.6% (2nd consecutive decline) V -1.8% PRIOR; Y/Y: -3.8% V -0.6% PRIOR
- (NZ) NEW ZEALAND OCT PERFORMANCE SERVICES INDEX: 54.8 V 57.0 PRIOR (9-month low)
- (UK) UK DEC RIGHTMOVE HOUSE PRICES M/M: -3.3% V -1.7% PRIOR; Y/Y: 7.0% V 8.5% PRIOR

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 -1.0%, S&P/ASX -0.5%, Kospi -0.4%, Shanghai Composite -0.8%, Hang Seng -1.1%, Mar S&P500 +0.4% at 1,998

***Commodities/Fixed Income***
- Feb gold -0.4% at $1,218, Jan crude oil +0.6% at $58.16/brl, Mar copper flat at $2.93/lb
- (AE) UAE Oil Min Suhail Al-Mazrouei: Will not change our mind on supply if prices go to $60 or to $40 - CNN interview
- (JP) BOJ offers to buy ¥110B in JGB with maturity less than 1-yr, ¥240B in 10-25yr JGB and ¥160B in JGB with maturity over 25-yr
- (KR) South Korea MoF sells 10-yr govt bond at 2.675%
- USD/CNY: (CN) PBoC sets yuan mid point 6.1152 v 6.1184 prior setting (strongest since Feb 20th)

***Market Focal Points/Key Themes/FX***
- Last week's volatility has carried over into the new Asian trading session, as regional indices track the slump in the US markets on Friday even as SP500 futures point to a higher open. USD/JPY reflects the swings in overall sentiment, initially falling about 100pips to 117.80 before rebounding toward 118.70 in early afternoon session. Japan's ruling LDP party passed the snap elections test with flying colors, retaining the 2/3 supermajority with about 326 seats in the 475-seat lower house of Parliament. Govt officials have indicated that all cabinet posts will be unchanged, while cabinet sec Suga noted economic revival remains the govt's top priority. Separately out of Japan, BOJ's Q4 Tankan survey saw Manufacturing slip by a point to +12 and Outlook miss consensus by 3pts at +9. Industrial CapEx growth was higher than expected however, and Non-Manufacturing sectors were slightly better than expected. BOJ noted the relative underperformance of smaller sector of the economy demonstrates the impact of weak Yen on business sentiment.

- Australia is dealing with a hostage situation in Sydney, as one suspected Islamist terrorist is allegedly holding hostages in a cafe. AUD/USD opened lower by about 50pips in the first two hours to test $0.82 handle before paring about half of those losses. Australia's Mid-Year Economic and Fiscal Outlook (MYEFO) contained few surprises in its gloomy assessment, widening its projections for FY14/15 budget deficit to A$40.4B v A$29.8B prior forecast and the following year to deficit A$31.2B v A$17.1B prior forecast. Australia govt also sees unemployment rising to 6.5% by middle of 2015 and staying there in FY15/16 before falling to 6% in FY16/17 and 5.75% in FY17/18. Earlier, Treasurer Hockey said the decline in iron ore prices has been much steeper than expected as the decline in terms of trade would be the highest on record. Australia based it forecasts on iron ore prices of $60/ton, down another 15% from current levels.

- Out of China, the 2015 macroeconomic forecast issued by the PBoC saw 2015 GDP potentially slowing to 7.1% and CPI to 2.2% vs their 2014-end estimates of 7.4% and 2.0% respectively. Export growth was raised to 6.9% vs 6.1% prior target, but also warned on 2015 macro risks including geopolitical effect on European economy, possible faster than expected rate hikes in US, significant decline in China property prices. Property developer giant Vanke president said the impact of the recent PBoC rate cut was limited, with many 2nd and 3rd tier cities still facing downward price pressure due to inventory oversupply. Meanwhile China Securities Regulatory Commission (CSRC) chairman noted the govt will promote IPO reforms and appropriately add more IPOs every month, presumably in response to the recent outsized rally in the A-shares.

- Over the weekend, US Senate passed the $1.1T spending bill by a 56-40 vote, effectively ending the threat of a govt shutdown. President Obama was expected to sign legislation into law before federal spending authority expires at midnight on Wednesday.

***Equities***
US markets/ADRs:
- PETM: Consortium led by BC Partners to Acquire PetSmart for $83.00/Share in Cash or about $8.7B
- PBR: Reports Q3 Rev BRL88.4B v BRL77.7B y/y; delays release of full unaudited Q3 results because of new facts in corruption investigation

Notable movers by sector:
- Consumer Discretionary: Sichuan Chengfei Integration Technology 002190.CN -10.0% (suspends major restructure plan); Midea Group 000333.CN +6.3% (Xiaomi to subscribe stake); Skilled Group SKE.AU -4.1% (appoints new CEO); STW Communications Group SGN.AU -9.7% (FY14 guidance); Recall Holdings REC.AU +17.1% (rejects acquisition proposal)
- Materials: MTS.AU -1.3% (UBS cuts stake); Tokyo Steel Mfg 5423.JP +7.1% (exit production at Okayama; maintains product prices)
- Energy: APA Group APA.AU -4.2% (FY15 guidance)