>>> Brokers Upgrades & Downgrades

>>> Up
*ARKEMA RAISED TO BUY VS NEUTRAL AT NOMURA; PT CUT TO EU75
*FRESENIUS MEDICAL CARE RAISED TO BUY VS NEUTRAL AT UBS
*GEA GROUP RAISED TO BUY VS HOLD AT BERENBERG
*HANNOVER RE RAISED TO HOLD VS REDUCE AT KEPLER CHEUVREUX
*IMAGINATION TECHNOLOGIES RAISED TO BUY VS HOLD AT LIBERUM
*L'OREAL RAISED TO STRONG BUY VS OUTPERFORM AT RAYMOND JAMES
*REN RAISED TO BUY VS NEUTRAL AT GOLDMAN

>>> Down
*BANCO ESPIRITO SANTO CUT TO SELL VS NEUTRAL AT CITI
*ILIAD CUT TO NEUTRAL VS BUY AT UBS
*TNT EXPRESS CUT TO HOLD VS BUY AT CANTOR

>>> PT Changes
* NYRSTAR PT RAISED TO EU3 VS EU2.80 AT ING
* Prada PT Cut to HKD57.8 at Mediobanca; Kept at Neutral
* Prysmian PT Cut to EU18.5 at Morgan Stanley; Kept at Overweight

>>> Initiation


>>> Call
>> Stock
*MONEYSUPERMARKET ENTERS CITI UK SMALL & MID-CAP KEY BUY LIST
*TELECITY GROUP REMOVED FROM UBS MIDCAP KEY CALL LIST

>>> Allergan could be eyeing one or more companies as potential targets

Allergan could be eyeing one or more companies as potential targets

Allergan, an Irvine, California-based pharmaceutical company, could be eyeing a number of different drug companies as potential buys, according to an Orange County Business Journal report.

The report cited analysts who mentioned Salix Pharmaceuticals, Actavis, Jazz Pharmaceuticals and Perrigo as potential targets for Allergan.

Future deals have been discussed ever since a bid by Valeant Pharmaceuticals to take over Allergan fizzled, the report said.

Tim Lugo, an analyst with William Blair & Co. who was quoted in the story, said that an acquisition by Allergan could help fight a potential takeover attempt by Valeant.

The report also mentioned a comment made by Allergan CEO David Pyott during a recent earnings call that his company is pursuing various options when it comes to acquisitions.

Analyst David Maris with BMO Securities said in the report that Allergan sounded confident in its ability to complete one or more deals in the next few months.

Allergan has USD 3.2bn in cash as of 30, June, the report said.


Source Orange County Business Journal

>>> Rodriguez Group declared bankrupt, could find buyer for Camper and Nicholson

Rodriguez Group declared bankrupt, could find buyer for Camper and Nicholsons activities

Rodriguez Group, a French-listed luxury yacht manufacturer, and its SNP Boat Service subsidiary, have been declared bankrupt by the commercial court of Cannes, the French daily Les Echos wrote citing no source. The report said Rodriguez was placed into receivership in January last but could not convince investors.

For 2013 Rodriguez reported turnover of EUR 56.7m, down 27% compared to 2012, with losses of EUR 18.5m. Total debts are EUR 96.5m, the report added. Rodriguez Group builds new yachts and sells second-hand boats plus operates a services activity.

Reason for the problems are a lot of second–hand boats that are hard to sell, and that results in a negative balance sheet.

For the first semester 2014, revenues were down by 25.9% to EUR 15.7m as no new yachts have been sold.

The Florida -based Camper & Nicholson subsidiary, specialized in the chartering and brokerage of yachts on the US market, could well find a buyer, the report said giving no more details.

Source Les Echos

>>> GSK rumoured to be potential target for Pfizer

GSK rumoured to be potential target for Pfizer

Pfizer, the New York City-headquartered listed biopharma group, is rumoured to be a possible bidder for the UK-listed rival GlaxoSmithKline, The Daily Express reported. The market report did not cite a source for the information but noted that Pfizer attempted in vain to acquire the UK-listed AstraZeneca earlier in the year.

The Guardian’s Market Forces Live blog said Berenberg analysts pointed out that Pfizer had been willing to pay USD 120bn to acquire AstraZeneca, and GSK has a market capitalisation of USD 117bn following a drop in its share price. Pfizer’s market cap is approximately USD 183bn, the analysts noted. They added that Pfizer would need to offer a premium which, based on similar terms to Pfizer’s last AstraZeneca offer, would mean a bid of around USD 164bn.

While the deal may be too rich for Pfizer, which would likely need to come up with USD 74bn cash, it could prove very beneficial, the analysts said, pointing in particular to GSK’s relatively low tax rate.
Source Daily Express, The Guardian

>>> Novo Banco could stay in state hands for up to two years

Novo Banco could stay in state hands for up to two years

Portugal's Resolution Fund, the new owner of Novo Banco, formerly Banco Espirito Santo (BES), has two years to sell the bank and repay EUR 4.4bn to the treasury of the EUR 4.9bn recapitalization, reported Diario Economico. Sources close to the situation told the Lusophone business paper that under the terms of its creation in 2012, the Resolution Fund has two years before being obliged to sell Novo Banco, despite potential political pressure for a quick transfer of the bank back to private hands.

Meanwhile, Finance Minister Maria Albuquerque was cited by the paper as saying the Resolution Fund, created during the EUR 78bn troika bailout to support troubled national banks, is repaying EUR 4.4bn to the Treasury at 2.8% with a 15 bps spread. The Treasury Loan to Resolution Fund is renewable very three months up to a maximum two years, Albuquerque said.

Elsewhere, Jornal de Negocios reported that the overnight transition of BES to Novo Banco appeared to have passed smoothly across Portugal. BES now becomes the bad bank for the process of cleansing Novo Banco's of toxic assets. BPI Equity Research, meanwhile, said no clarification has been given by the Bank of Portugal on whether EUR 3.6bn in loans to BESA, the Angolan subsidiary of BES, will be included in the bad bank. Although the bad bank B\S should be able to accommodate this with the EUR 4.6bn funding vehicle, the BPI analysts said.


Source Diario Economico, Jornal de Negocios, BPI Equity Research

(BFW) KKR Expects European M&A Market to Gain Traction: Handelsblatt

KKR Expects European M&A Market to Gain Traction: Handelsblatt
2014-08-05 05:21:52.735 GMT


By Christoph Rauwald
Aug. 5 (Bloomberg) -- Avg valuations poised to decline,
Handelsblatt reports, citing interview with KKR Europe head
Johannes Huth.
* European M&A market volume could rise 20%-30% this yr
* PE mkt has consolidated
* Share of PE transactions in global M&A market stable
* German soccer club Hertha BSC “financially interesting
investment”
* Sees growth opportunities in Africa


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

To contact the reporter on this story:
Christoph Rauwald in Frankfurt at +49-69-9204-1146 or
crauwald@bloomberg.net
To contact the editor responsible for this story:
Chris Reiter at +49-30-70010-6226 or
creiter2@bloomberg.net

>>> US After Hours

After Hours Summary: GIGA +16.9%, NLS +12.8%, GTAT +10.8%, FIVN -24.5%, SALE -22.3% following earnings/guidance
After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: GIGA +16.9%, NLS +12.8%, GTAT +10.8%, STXS +5.6%, PRTA +4.5%, CHGG +4.4%, EPAM +4.4%, JMBA +4.2%, ANV +4.1%, TSRA +3.8%, CAR +3.4%, AIG +2.4%, TST +1.6%, THC +1.1%, Y +0.8%, CUB +0.6%, MDU +0.1%, SLRC +0.1%

Companies trading higher in after hours in reaction to news: USU +13.0% (disclosed an amendment to its agreement with the Department of Energy that provides for additional funds of ~$5.7 mln), GCI +2.0% (Bloomberg reporting that co will buy out remaining stake in Cars.com for $1.8 billion), ESI +1.4% (announced that CEO Kevin M. Modany intends to resign, effective February 4, 2015; John Dean named Executive Chairman; Eugene Feichtner promoted to President and COO)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: FIVN -24.5%, SALE -22.3%, LF -10.7%, TECU -7.2%, OESX -6%, MDR -3.6%, SYKE -3.1%, ECOM -3.1%, WAIR -2.7%, DRC -2%, AREX -1.9%, SUNS -1.2%, ENH -1.2%, ACUR -1%, MWA -1%, VNR -0.9%, AEIS -0.8%, RTEC -0.8%, KONA -0.7%, CNQR -0.7%, VRNS -0.7%, CKP -0.6%, CUTR -0.2%, ACXM -0.1%

Companies trading lower in after hours in reaction to news: STAY -2.2% (announced launch of secondary offering by selling shareholder), PNRA -2.0% (announced CFO departure; Bill Moreton, Executive Vice Chairman and former CEO, to serve as interim CFO), BERY -1.0% (announced 14,728,218 share secondary public offering by certain funds affiliated with Apollo Global Management), PBR -0.5% (seeing reports that co may fall short of 2014 production expectations)

>>> Asian Update

Asian Market Update: China HSBC Services PMI hits record low; Australia posts another trade deficit


***Economic Data***
- (CN) CHINA JULY HSBC SERVICES PMI: 50.0 V 53.1 PRIOR; lowest since record began in 2005
- (AU) AUSTRALIA JUN TRADE BALANCE (A$): -1.7B V -2.0BE; (3rd consecutive deficit)
- (AU) AUSTRALIA JUL AIG PERFORMANCE OF SERVICES INDEX: 49.3 V 47.6 PRIOR (5th consecutive contraction)
- (AU) Australia ANZ Roy Morgan Weekly W/W: 115.0 v 116.2 prior
- (PH) PHILIPPINES JULY CPI M/M: 0.6% V 0.3%E; Y/Y: 4.9% V 4.6%E; CORE CPI Y/Y: 3.0% V 2.9%E
- (KR) SOUTH KOREA JUL FOREIGN RESERVES: $368.0B (record high) V $366.6B PRIOR
- (HK) HONG KONG JULY HSBC PMI: 50.4 V 50.1 PRIOR; (5-month high)

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.2%, S&P/ASX -0.3%, Kospi -0.4%, Shanghai Composite -0.4%, Hang Seng -0.1%, Sept S&P500 -0.1% at 1,930

***Commodities/Fixed Income/Currencies***
- Dec gold +0.1% at $1,290, Sept crude oil +0.1% at $98.43/brl, Sept Copper -0.1% at $3.24/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 1.7 tonnes to 800.1 tonnes (lowest since July 10th)
- SLV: iShares Silver Trust ETF daily holdings fall to 10,010 tonnes from 10,014 tonnes prior
- JGB: (JP) Japan MoF sells ¥2.18T in 0.6% (0.6% prior) 10-yr notes; Avg yield: 0.522% v 0.562% prior; Bid to cover: 4.29x v 3.43x prior
- (CN) PBoC to drain CNY30B in 14-day repos (3rd consecutive drain)

***Market Focal Points/Key Themes***
- Regional indices are modestly lower while SP500 futures are down 0.1% in thin afternoon trade. Early optimism that followed a rebound on Wall St has dissipated with the release of record-low HSBC services PMI figure from China. HSBC economist noted the "weakness in the headline number likely reflects the impact of the ongoing property slowdown in many cities as property related activity see less business... meanwhile, the employment and business sentiment indices remain stable." Separately, Chinese press speculated lending activity by China's top 4 banks in July would slow to CNY210B v CNY290B in June.

- Australia trade deficit was slightly more narrow than expected but still marked its 3rd consecutive contraction. Exports to China rose nearly 4% and shipments of iron ore were up by nearly 5%, albeit from a downwardly revised volume for June. Today's RBA policy statement is not expected to contain many surprises. Analysts are unanimous in expectation for another rate hold, and a vast majority sees the RBA standing pat for the remainder of the year. In notable Australia earnings, Downer EDI is down 4% after posting flat FY14 earnings growth and guiding FY15 profit lower.

- Looking ahead, central bank calendar remains busy for the balance of the week. In Asia, RBI statement will follow that of the RBA later today, with some chatter forecasting a more dovish tilt. BOJ decision will be released on Friday, and local press is also speculating that board members are considering a more cautious assessment of output and exports. Recall last week Japanese press reported there may be some growing discord among policy members. Also in Japan, Toyota Motors is on tap to post Q1 results today after market close.

***Equities***
US markets:
- NBTF: To be acquired by Peoples Bancorp in cash and stock deal valued at $31/shr, or $109M; +23.9% afterhours
- GTAT: Reports Q2 -$0.16 v -$0.15e, R$58.0M v $63.2Me, raises FY14 guidance; +11.3% afterhours
- CAR: Reports Q2 $0.68 v $0.63e, R$2.19B v $2.14Be; +4.2% afterhours
- AIG: Reports Q2 $1.25 (adj) v $1.05e, R$9.21B (net premiums written); +2.7% afterhours
- MRO: Reports Q2 $0.89 v $0.74e, R$2.94B v $3.19Be; +2.0% afterhours
- THC: Reports Q2 -$0.11 v $0.00e, R$4.04B v $3.93Be, Raises FY14 EBITDA guidance; +1.1% afterhours
- WAIR: Reports Q3 $0.34 v $0.36e, R$395.6M v $406Me; -2.7% afterhours
- SYKE: Reports Q2 $0.27 v $0.26e, R$320.5M v $321Me, Lowers FY14 guidance to $1.34-1.41 v $1.51e, R$1.31-1.32B v $1.32Be; -3.1% afterhours
- SALE: Reports Q2 $0.08 v $0.18e, R$59.5M v $59.8Me; -20.8% afterhours

Notable movers by sector:
- Consumer Discretionary: Daiichikosho 7458.JP +2.6% (Q1 results)
- Consumer staples: WH Group 288.HK +7.7% (IPO debut)
- Financials: Cinda International 111.HK +9.7% (H1 guidance); HSBC 5.HK +0.8% (H1 results); Greentown China 3900.HK -10.6% (H1 guidance); Bank of Yokohama 8332.JP -3.9% (Q1 results); NTT Urban Development Corp 8933.JP +4.8% (Q1 results); Yamaguchi Financial Group 8418.JP -1.9% (Q1 results); Suruga Bank 8358.JP -4.8% (Q1 results)
- Industrials: Brother Industries 6448.JP -3.5% (Q1 results); Isuzu Motors 7202.JP +4.8% (Q1 results); Japan Steel Works 5631.JP -7.7% (Q1 results); Downer DOW.AU -4.0% (FY14 results)
- Technology: Tamron 7740.JP +2.0% (Q2 results); Rakuten 4755.JP +5.1% (H1 results)