>>> EVS becomes target for takeover (€375mil Mkt Cap)

EVS becomes target for takeover 

EVS, a Belgian technology firm, has become an attractive target for a takeover, both de Standaard and De Tijd reported.

The strong showing at its quarterly results; the net profit increase by EUR 11.3m, a 78% increase in comparison to the same period last year, has stoked the fire.

The publication of the results pushed up the share price by 8% as investors bet on a takeover, de Tijd reported. Capital funds are rumoured to be considering such a move, de Standaard report said.

EVS fired its CEO in October due to differences over strategy, as previously reported.

Under its interim CEO Muriel de Lathouwer the organization is being streamlined and costs are being cut. Fourteen divisions were cut down to five, increasing EVS's attraction, de Tijd said.



Source De Tijd, De Standaard

RTR - Portugal regulator sheds light on BES debt scheme, Swiss go-between


(Reuters) - Swiss company Eurofin was a key go-between in a complex scheme that used bonds of Portugal's Banco Espirito Santo via offshore companies to cover liabilities of the bank's founding family as its business empire crumbled, a regulator said on Tuesday.

Carlos Tavares, head of Portugal's securities market watchdog CMVM, told a parliament committee that the scheme that worked in the first half of 2014 involved heavily-discounted bonds that were later resold at about triple the initial price.

The committee is looking into the August rescue of Banco Espirito Santo (BES) by the state.

The debt scheme had increased BES's exposure to the Espirito Santo family liabilities in breach of central bank orders, causing a huge loss for BES and forcing the state to inject 4.9 billion euros in it. A working bank, Novo Banco, was carved out of BES, the country's second-largest lender, while toxic assets remained with BES that the authorities plan to wind down.

Tavares said the debt triangulation scheme had been detected by the auditing firm KPMG.

"These operations were concentrated in the first half of 2014. Eurofin was the intermediary and we suspect that it is an entity related to BES, although not formally," Tavares said.

According to media reports Espirito Santo Group companies held a 20 percent stake in Eurofin - a Lausanne-based finance and consulting services firm with an office in Porto - between 2004 and 2009. Nobody at Eurofin was available to comment.

BES issued very bonds with maturities of up to 40 years at a very low price of some nine percent of face value, Tavares said.

Later the bonds were resold via Eurofin to BES clients, either directly or using offshore special purpose vehicles that held the bonds, but issued shares and sold them to clients.

At that stage bonds were valued two to three times the issue price, with an implicit yield of 4 percent, below the initial yield of 7 percent.

"This price difference was kept by the counterparties (SPVs) that we have not fully identified," Tavares said. According to information obtained by the auditors, "the difference was used to repay debts of other Espirito Santo Group entities," he said.

In late August, Reuters exposed the Espirito Santo borrowing spree, worth around 5 billion euros in January-June, and other attempts to save the family empire that ignored central bank orders that the management stop mixing the lender's affairs with the family business

>>> Asian Update

Asian Market Update: BOJ downgrades assessment of inflation as Yen losses mount

***Economic Data***
- (JP) BANK OF JAPAN (BOJ) POLICY STATEMENT: REITERATES TO INCREASE MONETARY BASE AT ANNUAL PACE OF ¥80T (As Expected); Lowers assessment of CPI; Raises assessment of Exports
- (JP) Japan Sept Final Leading Index: 105.6 v 105.6 prelim; Coincident Index: 109.8 v 109.7 prelim
- (AU) AUSTRALIA OCT WESTPAC LEADING INDEX M/M: 0.0% V -0.1% PRIOR (4-month high)
- (AU) AUSTRALIA OCT SKILLED VACANCIES M/M: 0.0% V 0.3% PRIOR (6-month low)
- (KR) South Korea Oct PPI Y/Y: -0.7% v -0.5%prior; 3rd month of decline

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.2%, S&P/ASX -0.4%, Kospi -0.3%, Shanghai Composite -0.2%, Hang Seng -0.3%, Dec S&P500 -0.1% at 2,046

***Commodities/Fixed Income***
- Dec gold -0.5% at $1,191, Dec crude oil -0.5% at $74.25/brl
- (US) API PETROLEUM INVENTORIES: CRUDE: +3.7M (first build in 3 weeks) v -1Me, GASOLINE: +0.52M v +0.5Me, DISTILLATE: -3.3M v -1.5Me
- SLV: iShares Silver Trust ETF daily holdings rise to 10,864 tonnes from 10,789 tonnes prior; highest level since Oct 5th
- (AU) Australia MoF (AOFM) sells A$500M in 3.25% bonds due 2029; Avg yield: 3.5578%; Bid-to-cover: 4.53x
- (CN) China Ministry of Finance (MoF) sells 10-yr bonds at 3.58% yield - financial press
- USD/CNY: (CN) PBoC sets yuan mid point at 6.1397 v 6.1430 prior setting (strongest setting since Nov 9th)

***Market Focal Points/Key Themes/FX***
- Coming less than 3 weeks after the unexpected expansion of easing, the latest BOJ monetary policy statement further solidified more restrained central bank policy stance. The BOJ reiterated the economy continued to recover moderately, but also pointed to weakness on production side remaining from the run-up to initial consumption tax lift. BOJ was more upbeat on Exports ending downward momentum, and also reiterated that Public investment leveled off at high level and Private consumption was resilient as a trend. The downgrade of inflation assessment is perhaps the most notable - BOJ estimates y/y rate of increase in CPI around 1% vs the previously seen 1.25% and also forecasting the outlook for inflation to around current levels for the time being.

- After much fanfare on the opening day, the activity related to the Shanghai-Hong Kong trading link has been underwhelming. A Chinese press report said the 2nd day of trading saw mainland investors buying up just 7.6% of daily allowance of Hong Kong shares. Also of note, despite another decline in China property prices for October reported overnight, a local press report profiled the sale of a Shanghai plot of land to Minsheng Investment at CNY24.9B - record level for the city.

- In Australia, Westpac leading index stopped falling for the first time in 4 months. Resident economist stated Westpac expects Australia's growth rate in 2015 to reach an above trend 3.2% despite a larger drag from mining investment, adding the next RBA move would be a tightening considering "improving growth momentum in consumer spending, non-mining business investment, and the labour market."

- Upward trend in the greenback has been much more pronounced across the dollar majors. USD/JPY hit fresh 7-year highs above 117.40, while AUD/USD and NZD/USD both fell by as much as 60pips to $0.8660 and $0.7870 respectively going into Wednesday's release of the latest FOMC meeting minutes.

***Equities***
US markets:
- JACK: Reports Q4 $0.54 (adj) v $0.53e, R$345M v $342Me; +3.8% afterhours
- PETM: Reports Q3 $1.02 (adj) v $0.95e, R$1.74B v $1.73Be; KKR, CD&R said to prepare a joint $7.5B+ bid (current market cap about $7.3B) to take PetSmart private - financial press; +2.6% afterhours
- TRP: (US) Keystone XL pipeline bill fails to pass procedural vote in US Senate by 59-41 vote - financial press; -1.7% afterhours
- VIPS: Reports Q3 $0.08 v $0.07e, R$882.6M v $850Me; -5.1% afterhours

Notable movers by sector:
- Consumer Discretionary: Huayi Brothers 300027.CN +10.0% (Alibaba, Tencent, Ping An, CITIC acquire shares)
- Materials: BC Iron BCI.AU -9.5% (comments from annual general meeting)
- Industrials: Samsung Heavy Industries 010140.KR -5.4%, Samsung Engineering 028050.KR -7.5% (Samsung Heavy, Samsung Engineering merger canceled); Takata Corp 7312.JP -5.1% (NHTSA expands recalls); James Hardie Industries JHX.AU +5.2% (H1 results)
- Technology: Chinasoft International Ltd 354.HK +1.2% (awarded contract from China Mobile)

>>> US After Hours

After Hours Summary: DL +5.9%, LZB +5.6%, JACK +3.4%, PETM +2.3%, MTSI +0.1%, XUE -4.9%, VIPS -4.6%, SQM -0.6% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: DL +5.9%, LZB +5.6%, JACK +3.4%, PETM +2.3%, MTSI +0.1%

Companies trading higher in after hours in reaction to news: AGIO +5.0% (announced early Phase 1 data showing clinical acivity of AG-120 as a single agent in advanced acute myeloid leukemia), PERY +2.8% (CalSTRS, Legion Partners call on PERY board to form an independent committee to evaluate strategic alternatives), RSH +2.3% (seeing reports that Monach has ended negotiations to take over a $140 mln loan), PLKI +1.6% (Red Mountain Capital disclosed a 5.1% stake in a 13-D Filing; Continue to engage in dialogue with mgmt), LNBB +1.4% (seeing reports that co is working with Sandler O'Neil to explore a sale

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: XUE -4.9%, VIPS -4.6%, SQM -0.6%

Companies trading lower in after hours in reaction to news: HZNP -1.9% (announced presentation of data showing unmet need in Rheumatoid Arthritis and the effect of Rayos delayed-release tablets in reducing joint stiffness of RA throughout the day)

>>> US Close Dow +0,23% S&P+0,52% Nasdaq +0,67% Russell +0,53%

Closing Market Summary: Biotechnology Leads S&P 500 To New Record

The major averages ended Tuesday near their highs with the S&P 500 (+0.5%) registering its fifth consecutive advance. The benchmark index settled at a fresh record at 2,051.80 high while the Nasdaq Composite (+0.7%) outperformed after struggling yesterday.

The Tuesday session began on an unassuming note, but the health care sector (+1.6%) quickly pulled away from its flat line thanks to significant strength in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 295.25, +6.41) jumped 2.2% and contributed to the relative strength of the Nasdaq.

In addition to drawing support from biotech, the Nasdaq received a solid boost from chipmakers after SunEdison (SUNE 21.50, +4.89) agreed to acquire First Wind for $2.40 billion as part of a joint venture with TerraForm Power (TERP 32.75, +6.91). Shares of SUNE soared 29.4% while the broader PHLX Semiconductor Index spiked 1.9% with all but two components registering gains.

The broad strength among chipmakers was not enough to bring the technology sector (+0.4%) in line with the benchmark index as Google (GOOGL 544.51, -2.13), IBM (IBM 161.89, -2.27), and Microsoft (MSFT 48.74, -0.41) weighed.

Meanwhile, the remaining cyclical sectors registered gains across the board with materials (+1.1%) leading the bunch. Fertilizer stocks like Mosaic (MOS 46.77, +1.50) and Potash (POT 35.41, +1.62) underpinned the sector after world's largest potash miner, Uralkali, suspended operations due to elevated levels of brine.

For its part, the other commodity-related sector, energy, started in the lead, but narrowed its gain to just 0.1% by the close. Crude oil factored into the sector's retreat from highs, falling 1.4% to $74.60/bbl. The energy component finished near its low even as the Dollar Index (87.58, -0.35) lost 0.4%.

Today's dollar weakness was driven by a better than expected ZEW Sentiment Survey in Germany, which gave a boost to the euro and helped the DAX settle higher by 1.6%. The greenback did show some intraday strength against the yen after Nikkei reported Japan's Prime Minister Shinzo Abe plans to cut the corporate tax next year. The report followed an overnight announcement from the premier, who said he will dissolve parliament, call for a snap election, and delay the impending sales tax hike by at least 18 months.

On the downside, the telecom services sector (-0.2%) was the lone decliner while the consumer discretionary sector (+0.1%) climbed out of the red in the early afternoon. Retailers kept the discretionary space under pressure with Home Depot (HD 95.98, -2.05) and Urban Outfitters (URBN 28.79, -2.04) losing 2.1% and 6.6%, respectively. Urban Outfitters missed estimates while Dow component Home Depot beat by a penny.

Interestingly, the advance to a new record did not lure money out of the Treasury market. The 10-yr note registered a modest gain with its yield slipping two basis points to 2.32%.

Participation was in-line with long-term average as roughly 710 million shares changed hands at the NYSE floor.

Economic data was limited to PPI and NAHB Housing Market Index:
  • Producer prices edged up 0.2% in October after declining 0.1%, while the consensus a decline of 0.2% 
    • The upside surprise in producer price growth was a result of a sharp 0.5% increase in prices of final demand for services, which was the largest increase since a similar 0.5% gain was recorded in July 2013. The services component was added to the PPI when the new methodology was introduced last year and is difficult to estimate. 
    • Final demand of finished goods, which was the headline PPI index under the previous methodology, fell 0.3% in October and was much closer to expectation. 
    • The decline in crude and gasoline prices led to a 3.0% drop in the energy price index, while a 5.3% increase in meat prices led to a 1.0% overall increase in food in October 
    • Excluding food and energy, core prices rose 0.4% in October after reporting no change in September while the consensus expected an increase of 0.1%. 
  • The NAHB Housing Market Index for November jumped to 58 from 54 while the consensus expected an uptick to 55 
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while October Housing Starts (consensus 1.025 million) and Building Permits (consensus 1.04 million) will be reported at 8:30 ET. The day's data will be topped off with the 14:00 ET release of the FOMC Minutes from the October meeting.
  • Nasdaq Composite +12.6% YTD 
  • S&P 500 +11.0% YTD 
  • Dow Jones Industrial Average +6.7% YTD 
  • Russell 2000 +0.6% YTD

>>> Woodside considers AUD 6bn offer for three Apache business assets

Woodside considers AUD 6bn offer for three Apache business assets
Woodside Petroleum, the ASX-listed energy group, is said to be considering an AUD 6bn (USD 5.24bn) bid for Apache Corporation assets in Australia and Canada, The Australian reported. According to the report Woodside, adviser by Citi, is targeting three parts of Apache’s operation including its 13% stake in the Wheatstone LNG project and two exploration fields, and a portfolio of oil and gas assets in Western Australia, and Canada’s Kitimat LNG project.

The report also said that Apache is believed to have received highly conditional indicative offers for its Western Australian assets from two groups. Apache is said to have rejected the offers as too low. The WA assets include a stake in the Phoenix South Discovery, the report said.
 
The Australian

recode.net : WhatsApp Adds Encryption to Secure Text Messages

If you’ve been worried just a bit about who may be able to read your text messages, the latest move from WhatsApp could help ease your concerns.

In what is likely the largest deployment of strong encryption technology ever, the Facebook-owned messaging service added the ability to encrypt the billions of messages sent by its half-billion users each day, making them virtually unreadable to would-be eavesdroppers, including government agencies. WhatsApp has added encryption technology called TextSecure developed by Open Whisper Systems, a team of open-source software developers. The move was announced in an Open Whisper blog post.

The latest version of WhatsApp for Android includes the technology for one-to-one messages. Support for group chats and media messages is still in development, as is support for other mobile platforms, like iOS. “We have a ways to go until all mobile platforms are fully supported, but we are moving quickly towards a world where all WhatsApp users will get end-to-end encryption by default,” the firm said.

The addition of strong encryption will likely add some new threads to the larger policy discussion around the use of strong encryption by consumers in their everyday communications. Last month, FBI Director James Comey strongly criticized Apple for implementing strong encryption on its iMessage platform, which runs on iPhones, iPads and Macs. In a speech, Comey said the agency isn’t “always able to access the evidence we need to prosecute crime and prevent terrorism.” He asked Apple and Google to reverse their stance on baking strong encryption into their messaging products, and also called for new laws to facilitate wiretapping.

One interesting encryption technique that TextSecure employs is the generation of a new key for every message, a technique called Forward Secrecy. That means even if eavesdroppers manage to break the key on one message, they have to go through the trouble to break the key for each additional message to capture an entire conversation. Typically conversations are encrypted to a single key exchanged between two users.

WhatsApp is used more widely outside the U.S. than within it, meaning its addition of strong encryption is likely to rankle law enforcement agencies in other countries, and of course the U.S. National Security Agency.

>>> Baker Hughes: Termination fee is $1 bln in HAL/BHI- SEC Filing

Baker Hughes: Termination fee is $1 bln in HAL/BHI- SEC Filing
"If the Merger Agreement is terminated by (i) Halliburton as a result of a change in the recommendation of Baker Hughes' board of directors that Baker Hughes' stockholders approve the Merger Agreement or (ii) Baker Hughes in order to enter into a definitive agreement with a third party for certain alternative transactions, then in either case Baker Hughes would be required to pay Halliburton a termination fee of $1 billion. If the Merger Agreement is terminated because Baker Hughes' stockholders have not approved the Merger Agreement upon a vote taken thereon and prior to the Baker Hughes stockholder meeting a proposal for an alternative transaction was publicly announced and not withdrawn, then Baker Hughes would be required to pay Halliburton the $1 billion termination fee if, but only if, Baker Hughes enters into an agreement with respect to, or consummates, an alternative transaction with a third party within 12 months of such termination".

>>> Zoetis sees FY15 revs of $4.85-4.95 bln vs $4.96 bln Capital IQ Consensus Es

--> ZTS -0,77%

Zoetis sees FY15 revs of $4.85-4.95 bln vs $4.96 bln Capital IQ Consensus Estimate, adjusted EPS of $1.61-1.68 vs $1.71 Capital IQ Consensus Estimate

Co hosted its first-ever Investor Day, discussing with investors and analysts the company's leadership position in the animal health industry and the strategy and initiatives underway that will drive growth and create value for shareholders. The company also provided full-year 2015 financial guidance and outlined its longer term financial goals through 2017.
CFO Paul Herendeen indicated the company could grow revenue in the range of 5% to 7% on an operational basis for 2016 and 2017, and grow adjusted net income in the range of 11% to 16% on an operational basis for 2016 and 2017.
For full-year 2015, the company offered the following financial guidance:
Revenue of between $4.850 billion to $4.950 billion (6.5% to 8.5% growth on an operational basis; vs $4.96 bln Capital IQ Consensus Estimate)
Adjusted diluted EPS1 for the full year between $1.61 to $1.68 per share (vs $1.71 Capital IQ Consensus Estimate)