>>> PBR +4% Pre-Market on yesterday news

Petrobras Brasileiro extending yesterday afternoon's move higher -- trading 4%+ higher premarket

- Co confirmed yesterday that, in line with its Business and Management Plan which provides for divestment of assets abroad and in Brazil, is negotiating with Cemig - Companhia Energética de Minas Gerais to sell its 40% interest in Gasmig. Gasmig is the sole distributor of piped natural gas in the state of Minas Gerais and is responsible for the distribution of 4.1 million m³/day of natural gas through a network of gas pipelines of around 850 km. Petrobras will closely inform the market and its shareholders about the progress of this operation.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: GTIV +10.9%, SWKS +8.3%, ERIC +7.8%, USU +7.5%, ALU +5.4%, RECN +3.6%, PBR +3.5%, NOK +3.4%, WAL +2.8%, CE +2.4%, WDC +2.3%, GOOG +1.7%, AZN +1.4%, PRAN +1.2%, RFMD +1.2%, MATW +1.1%, TOT +0.9%, GRT +0.7%, GE +0.7%

Gapping down: AMD -18.2%, KTCC -5.6%, TGP -4.2%, ZHNE -3.3%, ROG -3%, PT -2.9%, BGS -2.7%, GLUU -2.6%, AU -1.9%, STX -1.7%, IBM -1.6%, CPHD -1.5%, ABX -1.3%, SHPG -1.1%, SLB -1.1%, SLV -0.9%, RIO -0.5%, HPQ -0.4%

>>> Johnson Controls beats by $0.01, reports revs in-line; guides Q4 EPS in-line

Johnson Controls beats by $0.01, reports revs in-line; guides Q4 EPS in-line

Reports Q3 (Jun) earnings of $0.84 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $0.83; revenues rose 3.0% year/year to $10.81 bln vs the $10.85 bln consensus.
  • Co issues in-line guidance for Q4, sees EPS of $1.00-1.02 vs. $1.01 Capital IQ Consensus Estimate.
  • Automotive Experience revenues from continuing operations in the fiscal third quarter of 2014 were $5.7 bln, up 7 percent compared to the 2013 quarter, reflecting higher automotive production in all geographic regions.
  • Guidance: The company also reaffirmed its full fiscal year guidance for free cash flow of $1.6 bln and segment margin improvements in all three of its businesses. The updated guidance assumes that underlying earnings from the recently announced Air Distribution Technologies acquisition are not material in the fourth quarter.

>>> ECB's Weidmann (Germany): Extended period of too-low inflation could paralyz


ECB's Weidmann (Germany): Extended period of too-low inflation could paralyze the eurozone; there is a danger that low rates will be used to finance additional spending not consolidate govt spending - comments from Madrid 
- Ultra-loose monetary policy poses risks to financial stability 
- There is a danger of bubbles in asset and real estate markets due to the hunt for yield - ECB must not put off raising rates to help public finances 
- Monetary policy has done its bit towards maintaining price stability

(NY Post) $100/share enough for Fox to seal Time Warner deal

For Time Warner shareholders, the magic number is 100.
Although CEO Jeff Bewkes was quick to shoot down an acquisition by Rupert Murdoch’s 21st Century Fox, Time Warner shareholders could easily be swayed with a bid around $100 a share, said sources close to the situation.
That would be 18 percent above Fox’s initial $85-a-share proposal, a mix of non-voting shares and cash. Time Warner investors are also hoping for more cash and Fox shares with voting rights, sources said.
“They need to sweeten it a little bit,” said one source close to talks. “Make it 60 percent cash and the rest in stock and mix in some Class B [voting] shares.”
Clearly, Time Warner investors believe that both media conglomerates are just biding their time.
Time Warner’s stock rose another 3.6 percent on Thursday, to close at $86.12, after jumping 17 percent the previous day when the rejected bid was leaked.
“The clock is ticking on Time Warner’s independence,” said Michael Nathanson, a media analyst at MoffettNathanson. “It’s not the final offer, but the leak created a higher-priced Time Warner.”
Nathanson said the expectation is that Fox will be back with another bid in the $90s. Neither company would comment.
The next step in the merger dance could happen Aug. 6, when both companies are set to report quarterly earnings with investors itching to hear more.
The two media giants will spend the next three to six months explaining their positions, said Nathanson.
No doubt Time Warner will continue to claim it’s better off as a stand-alone company, while Fox will talk about how well the two fit together.
One M&A specialist said both companies have factors working in their favor.
“Time Warner is in the catbird seat. The stock has performed well. There is no angry investor base,” this person said.
At the same time, Fox’s bid was well timed with other potential suitors, such as the telecom giants, pursuing other deals, the person added.
The overall M&A environment is also hungry for this kind of deal with the debt financing market red hot.
“The animal spirits are reinvigorated,” this person said.

(BFW) SoftBank’s T-Mobile Agreement Seen Delayed Until August: Kyodo

BN 07/18 09:41 *SOFTBANK-DEUTSCHE TELEKOM TALKS WON'T END BY LATE AUGUST: KYODO
BN 07/18 09:40 *SOFTBANK'S T-MOBILE AGREEMENT SEEN DELAYED UNTIL AUGUST: KYODO
SoftBank’s T-Mobile Agreement Seen Delayed Until August: Kyodo
2014-07-18 09:45:25.236 GMT


By Kanoko Matsuyama and Takashi Amano
July 18 (Bloomberg) -- The talks with Deutsche Telekom will
not end by the original plan date of Aug. 8, Kyodo News reports
without citing its sources.
* Deutsche Telekom requested SoftBank to submit a new plan:
Kyodo
* Hiroe Kotera, a spokeswoman for SoftBank in Tokyo, declined
to comment


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WantChinaTimes : More Chinese nationals looking to buy housing abroad

Link to article : {http://bit.ly/1nS0UeT}

China's brewing housing bubble and a slowing economy have led to a growing number of Chinese buying real estate abroad, according to China News Service's real estate web portal.

During the 12-month period ending in March, Chinese buyers spent a combined US$22 billion on housing in the United States, up by 72%, compared with the same period a year ago, and taking up 24% of the total housing purchases made by foreigners in the United States, according to a report released by the US-based National Association of Realtors.

Lu Heren, president of Meritros Investment Group, said the return rate for investing in the housing market in the United States could touch 8% after fees such as property tax are deducted. The relatively higher price of rent will also allow housing owners to recover the cost in six to seven years, according to the report.

In comparison, it may take a homeowner a century to recover from buying a residential property in Beijing, Lu added.

In addition to the wealthy, more Chinese belonging to the middle class are choosing to invest in the housing market abroad rather than in their home country. The real estate market in the United States is more mature and even with the sector suffering a significant decline after the 2008 financial crisis, it has gradually revived and become stable, Lu said.

Zhang Dawei, chief analyst at Centaline Property Agency, said that since the overall economy abroad has been recovering, many Chinese nationals have sold their property in China and bought homes abroad. However, several risks have emerged from such overseas investment, such as the uncertainty in foreign government policies and the constantly changing housing sector overseas.

Not everyone can profit from their investment abroad, Lu said.

Some Chinese buyers bought housing in Detroit after the US city went bankrupt. But poor public security made it difficult to lease the houses.

Yan Yuejin, a researcher at the Shanghai Yiju Real Estate Research Institute, also said that some real estate agencies hide the possible dangers involved and exaggerate the high returns on such investments in order to boost their sales performance.

(BFW) BSkyB ITV Stake Sale Increases Sky Europe Deal Likelihood: HSBC

BSkyB ITV Stake Sale Increases Sky Europe Deal Likelihood: HSBC
2014-07-18 07:23:20.373 GMT


By Blanche Gatt
July 18 (Bloomberg) -- BSkyB’s sale of 6.4% of its 7.5% ITV
stake to Liberty Global effectively removes ITV potential share
overhang, HSBC says in note.
* HSBC says stake sale increases probability of BSkyB moving
ahead with a potential Sky Europe deal
* Sale not a surprise, due to overhang issue
* Liberty Global as buyer is a surprise, given its recent
statements about seeking to expand in content
* BSkyB shares down as much as 0.6% today; ITV little changed
* NOTE yday: Liberty Global Acquires 6.4% Stake in ITV;
Doesn’t Plan Offer
* Yday: BSkyB’s Sale of ITV Stake Not Surprising, Espirito
Santo Says
* Yday: Time Warner Deal Could Mean Fox Sells BSkyB Stake:
Credit Suisse


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(BFW) Agnelli Family Seek Interest in Fiat Holdings, Handelsblatt Says

Agnelli Family Seek Interest in Fiat Holdings, Handelsblatt Says
2014-07-18 07:12:36.983 GMT


By Dorothee Tschampa
July 18 (Bloomberg) -- Investment banks on behalf of Fiat’s
controlling family are looking for interested buyers for shares
in Fiat, Handelsblatt newspaper reports citing unidentified
industry sources.
* Consultancy Roland Berger arranged a meeting with Ferdinand
Piech, Volkswagen’s chairman and a member of the family that
controls the majority of the German carmaker
* NOTE: VW Says Acquisitions Not on Agenda as Fiat Denies
Talks Report


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