>>> US Close Dow+0,04% S&P+0,29% Nasdaq+0,89%

Closing Market Summary: S&P 500 Logs Third Consecutive Gain

The major averages kicked off the holiday-shortened week with an advance that was paced by the Russell 2000 (+1.2%). The small-cap index was followed by the Nasdaq Composite (+0.9%) while the Dow (+0.04%) and S&P 500 (+0.3%) ended closer to their flat lines.

Stocks rallied out of the gate with upbeat action overseas contributing to the early strength. Equities in China and Hong Kong spiked in reaction to Friday's PBoC rate cut while European markets were boosted by increased expectations of a forthcoming sovereign QE program from the European Central Bank. To that point, Credit Suisse said it expects the ECB to announce plans for sovereign asset purchases in December.

ECB member and German Bundesbank President Jens Weidmann pushed back against the easing expectations, reminding that monetary policy alone is unable to create growth and requires corresponding measures from the fiscal side.

Despite Mr. Weidmann's comments, the market's expectation for more QE manifested itself through increased demand for Italian and Spanish debt. Italian and Spanish 10-yr yields both fell five basis points to their respective 2.15% and 1.97%.

Unsurprisingly, heightened easing expectations led to strength in European bank shares with Banco Santander (SAN 8.75, +0.25) and Deutsche Bank (DB 31.80, +0.87) spiking 2.9% and 2.8%, respectively. As for the broader financial sector (+0.6%), the cyclical group led at the start, but ceded the top spot to the consumer discretionary sector (+0.9%).

The discretionary space enjoyed broad support from homebuilders, retailers, and media names. The iShares Dow Jones US Home Construction ETF (ITB 26.08, +0.22) gained 0.9% and the SPDR S&P Retail ETF (XRT 93.90, +1.22) advanced 1.3%. Time Warner Cable (TWX 81.43, +1.38) stood out among broadcasters with a 1.7% spike.

Elsewhere among influential sectors, technology (+0.7%) and health care (+0.5%) outperformed, helping the market resist the pressure from energy (-0.7%), materials (-0.5%), and consumer staples (-0.1%).

The tech sector, and Nasdaq Composite, rallied behind the shares of Apple (AAPL 118.62, +2.16), which surged 1.9%. Chipmakers also provided support with the PHLX Semiconductor Index climbing 1.0%. Furthermore, the Nasdaq drew strength from biotechnology as the iShares Nasdaq Biotechnology ETF (IBB 300.15, +5.14) jumped 1.7%.

On the downside, the energy sector spent the day in a steady retreat. Meanwhile, crude oil held an overnight gain, but gave that back and then some to end lower by 1.0% at $75.75/bbl.

Treasuries registered modest gains after erasing their overnight losses. The 10-yr yield slipped one basis point to 2.30%.  

Tomorrow, the second estimate of Q3 GDP (consensus 3.2%) will be reported at 8:30 ET while September Case-Shiller 20-city Index (consensus 4.6%) and FHFA Housing Price Index will both be released at 9:00 ET. The day's data will be topped off with the 10:00 ET release of the Consumer Confidence report for November (expected 96.0).

* Nasdaq Composite +13.9% YTD  * S&P 500 +12.0% YTD  * Dow Jones Industrial Average +7.5% YTD  * Russell 2000 +1.1% YTD

>>> JPMorgan reiterates Overweight rating, price target raised to €106 from €93

JPMorgan reiterates Overweight rating, price target raised to €106 from €93 
- Firm expects ABI to achieve faster MT profit growth than peers and superior medium term earnings growth. This is driven by a return to near flat volume growth in the US from investment, innovation and an underlying market improvement with still robust price/mix. In Brazil, they continue to see DD EBIT growth from FY14E after the slowdown in FY13.

WSJ : EU Authorities Won’t Seek More Budget Cuts From France, Italy

EU Authorities Won’t Seek More Budget Cuts From France, Italy
Brussels Is Expected to Shun Hard Line on Deficit Targets Amid Europe’s Economic Woes

BRUSSELS—European Union authorities won’t formally seek more deficit trimming from France and Italy in preliminary reviews of eurozone budgets this week, European officials say, though they are expected to warn that the two budget plans risk going off track.

The anticipated decisions are a sign the bloc isn’t adopting a hard line against Paris and Rome amid the region’s continuing economic woes. With unemployment in double digits and the eurozone at risk of slipping into another recession, authorities here are wary of requiring the eurozone’s second and third largest nations to hit previously agreed budget targets for 2015 through significant tax increases and spending cuts.

The reviews, which will likely be announced on Thursday, are part of the eurozone’s new system of budget oversight. Officials in Brussels at the European Commission, the EU’s executive arm, get to review eurozone budgets before they are adopted by national parliaments. If they identify major problems, authorities can issue formal recommendations that can lead to fines against governments that refuse to follow them.

Because of the eurozone’s flagging growth prospects, France and Italy have both proposed to miss budget targets they had agreed to earlier this year. Weaker-than-expected growth lowers tax revenue and boosts spending on social benefits such as unemployment insurance, making government budget-deficit targets harder to achieve.

Late last month, EU officials decided against raising serious objections to the French and Italian budget plans. On Thursday, the EU won’t make further recommendations for Paris and Rome, officials familiar with the decisions said. That partly reflects the fact that their budget plans for next year aren’t completed yet, nor are final budget results available for this year.

But it also reflects an acknowledgment that economic conditions have deteriorated significantly since the targets were accepted in July.

The commission could still take action against Paris and Rome if it feels that their budgets don’t do the minimum necessary required by the EU’s budget rules. France must cut its structural deficit—the actual deficit adjusted for the ups and downs of the economy—by at least 0.5% of gross domestic product each year for the next several years.

France’s initial budget in October proposed a cut of only 0.2% next year. But Paris now says its deficit will be in line with EU targets after tweaking forecasts for debt charges, changing how it accounts for some tax breaks, and introducing extra measures to raise tax revenues from banks. The EU is likely to accept the new target but is still skeptical of whether France’s plans will meet that target, one EU official said.

Italy still faces a requirement to cut its debt burden in line with a new EU rule that requires governments with debts above the EU’s acceptable threshold—60% of annual GDP—to cut their debt each year by 5% of the difference between their current debt levels and 60% threshold. That requirement will start to come into force in 2016, requiring tax increases and spending cuts well beyond what the Italian government is currently proposing.

The EU official acknowledged that it wasn’t feasible to require Italy to abide the rule in the current economic climate.

(BFW) Glencore-Rio Merger Will Happen, Banker Hannam Tells Hedge Funds

Glencore-Rio Merger Will Happen, Banker Hannam Tells Hedge Funds
2014-11-24 18:28:52.815 GMT


By Matthew Campbell, Jesse Riseborough and Dinesh Nair
Nov. 24 (Bloomberg) -- Hedge funds including GLG Partners,
DE Shaw and Pentwater Capital were told this month by prominent
London mining banker to prepare for all-but-inevitable takeover
of Rio Tinto Group by Glencore, Bloomberg reports, citing people
familiar w/ the meeting.
* RIO, Glencore, Pentwater, Hannan & Partners declined to
comment
* DE Shaw and GLG couldn’t immediately be reached
* RIO shrs off lows
Story: NSN NFK32U6K51UC<GO>


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To contact the reporter on this story:
Arie Shapira in New York at +1-212-617-1488 or
ashapira3@bloomberg.net
To contact the editors responsible for this story:
Brad Skillman at +1-212-617-2763 or
bskillman1@bloomberg.net
Larry DiTore

(BFW) Porsche Hanover Court Ruling Canceled on Elliot’s Request

Porsche Hanover Court Ruling Canceled on Elliot’s Request
2014-11-24 16:56:19.975 GMT


By Karin Matussek
Nov. 24 (Bloomberg) -- Court won’t rule on hedge funds’
motion to stay EU1.8b case until criminal case against former
Porsche leadership is resolved.
* Lawyers for hedge funds Elliot and Perry Partners asked
court to “shelve” bid and to continue with asking
witnesses about their willingness to testify: Thomas
Katzensteiner, spokesman for the funds
* NOTE: Court originally scheduled ruling for tomorrow
* NOTE: Court said at Oct. 14 hearing that key witnesses
Wendelin Wiedeking and Holger Haerter are unlikely to
testify because of the pending criminal charges against them

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To contact the reporter on this story:
Karin Matussek in Berlin at +49-30-70010-6218 or
kmatussek@bloomberg.net
To contact the editor responsible for this story:
Anthony Aarons at +44-20-7673-2227 or
aaarons@bloomberg.net