>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: MELI +18.4%, GPRO +16.6%, AVIV +14.6%, IMPV +12.7%, SYNC +12.5%, OPLK +11.2%, BCOV +10.4%, TUES +10.3%, SAM +9.1%, BYD +8.3%, AXTI +8.3%, ( announces $5 mln stock repurchase program), SGMS +8%, GRPN +7.5%, CTRL +7.5%, LNKD +6.3%, ZEN +5.9%, GMED +5.3%, EHTH +5.1%, PGH +5.1%, SPR +5%, SREV+4.8%, SIMG +4.6%, WETF +4.6%, MCHP +4.4%, EXPE +3.8%, ABBV +3.8%, RBS +3.7%, VCRA +3.6%, MYL +3.5%, ATRC +3.3%, MSG +3.2%, ATEN +3.1%, WU +3%, ONNN +3%, UVE +2.9%, CODE +2.8%, HLT +2.8%, SGEN +2.6%, POWI +2.5%, OSK +2.4%, BYI +2%, COLM +1.9%, CUBE +1.9%, OUTR +1.6%, EMN +1.6%, FNHC +1.4%, LABC +1.4%, TSO +1.3%, AFFX+1.2%, GWR +1.2%, ZIOP +1%, DCM +1%

M&A news: AVIV +14.6% (Omega (OHI) to acquire all of the outstanding shares of Aviv in a stock-for-stock merger for consideration equivalent to $34.97 per share), ABCW +8.5% (announces definitive agreement to sell Richland Center Branch), PT +5.3% (Hearing M&A speculation behind the move)

Other news: SRPT +9.9% (FDA issued a statement on Duchenne muscular dystrophy), SFUN +6.5% (signed investment and joint venture agreements with Tospur Real Estate Consulting), NVDQ +5.4% (announces transfer of SPY Elite business from LifeCell Corporation for $4.5 mln ), ISR +4.3% (pulling back following recent strength), CPE +4% (Lone Star Value discloses 5.1% active stake ), LAKE +2.9% (cont vol pre-mkt), TWTR +2.4% (Kevin Weil will take over as TWTR product exec, according to reports), ALSN +2.1% (announces $500 mln stock repurchase program and increased quarterly dividend to $0.15 from $0.12/share), TM +1.9% (responding to BOJ added QE), BPZ +1.5% (announced a gas discovery at Onshore Block XXIII and discussions for gas sales pilot project), CMCSA +1.5% (Comcast Houston Sports Net restructuring plan has been approved by Judge), AVNR +1.2% (announces publication of pivotal Phase III Results from AVP-825 acute migraine study in the journal 'headache;' The TARGET study data demonstrated relief of moderate or severe migraine headache as quickly as 15 minutes ), HOV +1.1% (announces new Senior Notes offering of up to $200 mln), TASR +0.8% (following exec appearance on CNBC)

Analyst comments: VECO +5.6% (upgraded to Positive from Neutral at Susquehanna), ATML +2.9% (upgraded to Outperform at FBR Capital), ALU +2.4% (upgraded to Buy at Societe Generale), MPW +1.3% (upgraded to Mkt Outperform from Mkt Perform at JMP Securities)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: GPRO +16.9%, MELI +15%, AVIV +14.6%, SYNC +12.5%, ONNN +12.1%, OPLK +11.2%, BCOV +10.4%, TUES +10.3%, AXTI +9.6%, AXTI +9.6%, SAM +9.1%, BYD +8.3%, SGMS +8%, CTRL +7.5%, IMPV +7.4%, EHTH +6.6%, GRPN +6%, ZEN +5.9%, NVDQ +5.4%, LNKD +5.1%, SREV +4.8%, SIMG +4.6%, MCHP +4.4%, SRPT +4.3%, PGH +4.1%, CPE +4%, VCRA +3.6%, SFUN +3.5%, ATRC +3.3%, LAKE +3.2%, RBS +3.2%, ATEN +3.1%, X +3%, UVE +2.9%, CODE +2.8%, ALU +2.7%, WU +2.7%, SGEN +2.6%, POWI +2.5%, WETF +2.5%, EXPE +2.4%, ALSN +2.1%, MYL +2.1%, SAN +2%, BYI +2%, AVNR +1.9%, COLM +1.9%, CUBE +1.9%, ARMH +1.8%, TM +1.8%, SNY +1.8%, OUTR +1.6%, EMN +1.6%, BPZ +1.5%, TASR +1.4%, BHP +1.4%, FNHC +1.4%, LABC +1.4%, TWTR +1.3%, RIO +1.2%, AFFX +1.2%, GWR +1.2%, ZIOP +1%

Gapping down: AEGR -30.6%, TRMB -15.2%, TPX -12.8%, COMM -9.7%, PXLW -7.4%, STAA -5.7%, DGI -4.5%, GMED -4.3%, TEP -3.9%, GEVA -3.7%, EGO -3.5%, AG -3.2%, SBUX -3.1%, EPAY -2.9%, NBS -2.9%, THRX -2.8%, OFC -2.6%, GDX -2.6%, CCI -2.6%, OFC -2.6%, FLDM -2.3%, OMCL -2.2%, LNG -2.2%, SLV -2%, AUY -2%, GLD -2%, LQ -1.9%, STO -1.8%, NUVA -1.8%, TRUP -1.6%, NEM -1.6%, CSLT -1.5%, GFI -1.4%, CPSI -1.4%, SYRG -1.3%, HL -1.3%, GG -1.3%, GB -1.3%, SCSC -1.3%, COSWF -1.3%, SLW -1.1%, ABX -1.1%, ATR -1.1%, SEM -1%

>>> America Movil, Telefonica, Oi to bid for Brazil's TIM: report

(Reuters) - Mexico's America Movil SAB, Spain's Telefonica SA and Brazil's Grupo Oi SA agreed to place a bid for and to break up TIM Participações SA (TIMP3.SA), Brazil's second-largest wireless carrier, Folha de S. Paulo reported on Friday without saying how it obtained the information.
According to Folha, the accord between the three companies was not fully finalized, but they agreed in principle to pay 31.5 billion reais ($13.1 billion) for TIM, the Brazilian unit of Telecom Italia SpA. That price would include a 5 percent premium payout to controlling and minority shareholders of TIM, the paper added.
Investment banking firm Grupo BTG Pactual SA (BBTG11.SA) is handling the transaction, Folha added. A formal offer will be placed to shareholders of Telecom Italia (TLIT.MI), which owns about two-thirds of TIM Participações, the paper said.
Breaking up TIM would give rivals more breathing room in Brazil's crowded four-way mobile market, where they have struggled to add customers, invest in high-speed networks and protect profits in a stagnant economy.
Under the deal, America Movil would keep 40 percent of TIM's business, with Oi taking 28 percent and Telefonica about 32 percent, Folha said. According to the newspaper, Telecom Italia proposed to merge TIM Participações with Oi, but the plan did not move forward.
One source with knowledge of the situation told Reuters on Friday that Telefonica (TEF.MC)(VIVT3.SA) had engaged in talks in recent days about breaking up TIM Participações. Telefonica repeatedly said its sole focus was on integrating Brazil's GVT SA, a fixed-line and Internet broadband services firm it bought in August, into its platform.
America Movil (AMXL.MX), which is controlled by Mexican billionaire Carlos Slim, confirmed in September that it planned to join talks with Oi to make a joint bid for TIM.
Oi (OIBR3.SA) and Telefonica declined to comment. Press representatives for America Movil in Brazil did not have an immediate comment. Media representatives for BTG Pactual were not immediately available.

(BFW) Safra Family Preferred Bidder for London’s Gherkin: Europroperty

Safra Family Preferred Bidder for London’s Gherkin: Europroperty
2014-10-31 10:07:02.980 GMT


By Neil Callanan
Oct. 31 (Bloomberg) -- Company controlled by Safra banking
family is bidding GBP710m for tower and was chosen as preferred
bidder yesterday, EuroProperty reported without saying where it
got the information.
* Says Safra Group beat top bid of Amancio Ortega’s Pontegadea
though lower bidders can still submit higher offers
* Yield is less than 4%: Europroperty
* Says all sides declined to comment

NOTE: Gherkin Tower in Receivership Seen Drawing Lines of Buyers
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Neil Callanan in London at +44-20-3525-8274 or
ncallanan@bloomberg.net
To contact the editor responsible for this story:
Andrew Blackman at +49-30-70010-6223 or
ablackman@bloomberg.net

(BFW) Altice Is Ready to Make Bid for PT Portugal, Economico Says

Altice Is Ready to Make Bid for PT Portugal, Economico Says
2014-10-31 07:54:44.1 GMT


By Anabela Reis
Oct. 31 (Bloomberg) -- “From the standpoint of the buyer
we are ready,” Altice CEO Dexter Goei says in interview to
newspaper Diario Economico.
* “We are the best positioned to invest in the long term,”
Goei is cited as saying
* NOTE: Oct. 9, Altice Said in Talks With Oi Investors Over
Portugal Assets {NSN ND6QMU6S972N <go>}
link to newspaper (Portuguese): {http://tinyurl.com/ndwb3go}

Link to Company News:{1174Z PL <Equity> CN <GO>}
Link to Company News:{ATC NA <Equity> CN <GO>}
Link to Company News:{PTC PL <Equity> CN <GO>}

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

To contact the reporter on this story:
Anabela Reis in Lisbon at +351-21-340-4650 or
areis1@bloomberg.net

To contact the editor responsible for this story:
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net

>>> What to look at today - 31st of October 2014

US Market closed Higher with Dow leading the move, defensively-oriented health care (+1.8%) and utilities (+2.1%) finished in the lead, suggesting a lack of strong conviction, stronger Q3 GDP helped the sentiment...Visa (V 236.65, +21.99) soared 10.2% in reaction to a bottom-line beat and news of a $5 billion buyback, Mastercard(MA) spiked 9.4%...AAPL, FB...MSFT...underperformed..INTC -4%...Indistrial didn't manage to follow the market, UP with +0.4% move...Volume was only 730mil shares...VIX @ 14.52 -4.16%...US After Hours GPRO +15.3%, MELI +15%, GRPN +4.3%, LNKD +3%, AEGR -30.4%, TPX -13.1%, SBUX -4.4% following earnings/guidance...In Japan GPIF approved lifting domestic stock allocation, BOJ announced it would target 80t yen annual expansion in monetary base...In China, PBoC Dep Gov Yi warned that bad debt at China major banks is mounting after several top-tier financials revealed a troubling rise in NPLs earlier this week. CSRC dep chief Yao eased investor concerns however, indicating the recently delayed Hong Kong-Shanghai interconnect trading link is now in the final stages of preparation..Sony reports narrower-than-expected loss in 2Q...Nikkei +4.83%...Hang Seng +1.17%...Shanghai +1.34%

Eur$ 1.2563 S&P +1.13% EuroStoxx +1.92% Dax +2.18% FTSE +1.33% SMI+1.35%

Macro
- BOJ Unexpectedly Targets 80t Yen Annual Expansion in Mon. Base
- GIPF to increase Inv. in equities, 25% domestic Stock allocation
- China Industry Ministry (MIIT): Industrial sector is stable but faces large downward pressure
- Shrinking Chinese bank deposits add to warning signs for economy

Keep an eye on :
- AAL LN : Stock down yest. on potential disap. of Break up details - FT
- ABI BB : AB InBev 3Q Adj. Ebitda Misses Ests., AB InBev Sees 2014 U.S. Industry Vols. Improving
- BME SM : BME 9m Net EU122.2m; Est. EU123m
- BNP FP : BNP Paribas 3Q Net Income Beats Estimates; CIB Pretax Rises 19%
- CRDA LN : Traded higher on potential interest from Evonik
- BN FP : Danone to Invest $566 Million in Chinese Baby Formula Maker , Yahsili traded higher and Reverse gains during the session -8% now (1230 HK)
- ELT NO : Eltek Considers Sale of Co., Has Been in Contact With Parties
- ELE SM : Endesa 9m Net EU1.22b; Est. EU1.18b
- FIS1V FH : Fiskars 3Q Ebit Grows; Starts Share Buybacks, Proposes Extra Div
- FPE3 GY : Fuchs Petrolub Reiterates FY Organic Growth Forecast
- NK FP : Imerys Confirms Full-Year Target as Third-Quarter Net Rises 6.1%
- KPN NA : KPN Must Give Competitors Access to Copper, Fiber-Optic Networks
- KPN NA : KPN Gets Regulatory Approval for Additional 9% in Reggefiber
- LXS GY : Lanxess to Cut Up to 1,200 Jobs, Rheinische Post Says
- LONN VX : Lonza Says Results at End of 3Q Are On Track, Cuts 2014 Rev Goal
- NRE1V FH : Nokian Renkaat 3Q Sales, Profit Miss Ests.; Specifies Outlook
- REC BB : Recticel Cuts Outlook, Sees FY Combined Rebitda Growth Above 5%
- RSTA GY : RIB Software AG 3Q Profit After Tax Almost Trebles to EU8.4m
- SNBN SW : SNB Posts 9M Profit of CHF28.5bm on FX, Higher Gold Price
- SOLB BB : Solvay Cut at Goldman as Lower Oil Prices to Weigh on Business
- USG NA : USG People 3Q Rev. Misses, Sees Recovery in Markets Continuing
- WPP LN : WPP 3Q Sales Beat Estimates, Reaffirms Long Term Targets

>>> Brokers Upgrades & Downgrades - 31st of October 2014

>>> Up
*ALCATEL-LUCENT RAISED TO BUY VS HOLD AT SOCGEN
*BASHNEFT RAISED TO OVERWEIGHT VS NEUTRAL AT HSBC
*HENDERSON GROUP RAISED TO BUY VS NEUTRAL AT CITI
*LONMIN RAISED TO OVERWEIGHT VS NEUTRAL AT HSBC
*NEXITY RAISED TO OVERWEIGHT VS NEUTRAL AT HSBC
*TOTAL RAISED TO BUY AT SARASIN

>>> Down
*SOLVAY CUT TO SELL VS NEUTRAL AT GOLDMAN
*WORLD DUTY FREE CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN

>>> PT Changes


>>> Initiation
*FIAT CHRYSLER INITIATED OVERWEIGHT AT MORGAN STANLEY; PT EU13
*IMCD GROUP RATED NEW HOLD AT BERENBERG, PT EU23.70
*MONTUPET RATED NEW BUY AT BERENBERG, PT EU67.5

>>> Call

>>> BOJ Gov Kuroda: Expanded easing to ensure it will reach price target - post

BOJ Gov Kuroda: Expanded easing to ensure it will reach price target - post rate decision press conference 
- Took needed and sufficient action at today's policy meeting- Still see room for more policy action if needed- Easing aimed at ending the deflationary mindset; saw a risk of delay in changing this mindset
- Will do all we can to achieve the 2% inflation target; will not hesitate to act again
- Japan is at a critical juncture to end deflation- Need to continue QQE until the 2% inflation target is achieved
- Today's decision to ease shows the central bank's unwavering determination
- Decline in demand and falling oil prices are exerting downward pressure on prices
- Reiterates that easing is having the intended effects
- Japan economy is on a moderate recovery path- Lower energy prices to support the economy in the long term
- Impact of the April sales tax increase has been somewhat prolonged
- Board shared that it sees downside risks but were divided whether action was needed at this time (**Reminder: Vote for furtehr easing was 5 to 4 earlier today)

FT : Those betting on an Anglo American break-up may soon be disappointed.

Those betting on an Anglo American break-up may soon be disappointed.
Speculators have been buying Anglo ahead of a seminar on its De Beers business scheduled for Monday, with some reckoning the diamond division may be spun off as part of new chief executive Mark Cutifani’s strategic review due in December.

    Anglo’s ownership of De Beers is seen as a poison pill for Glencore, whose chief executive Ivan Glasenberg stressed last month it does not trade diamonds.
    Barclays put a value on De Beers at $13.4bn, up from an implied value of $12.8bn when Anglo bought full control of the business in 2011. That suggests a spin-off could be value accretive, particularly given Anglo is trading at a 37 per cent discount to its sum of the parts value, the broker said.
    However, analysts still see such a move as unlikely. “With commodity prices suffering elsewhere, Anglo needs all the earnings and cash flow it can get,” said Barclays, while house broker Morgan Stanley reckoned De Beers is “not obviously undervalued” within Anglo. The shares slid 2.4 per cent to £13.21 in a weak mining sector.

    WSJ : Japan Mega-Pension to Shift to Stocks

    Japan Mega-Pension to Shift to Stocks Announcement for New Portfolio for Fund Expected Friday Afternoon

    TOKYO—Japan’s welfare minister is likely to approve a new portfolio for the country’s ¥127 trillion ($1.2 trillion) pension on Friday, in a move that will have a significant impact on financial markets, according to people familiar with the matter.

    The new portfolio will cut the fund’s 60% target allocation to Japanese bonds by roughly half and sharply increase weightings to Japanese stocks and foreign assets, the people said. The new allocation is expected to be announced at a news conference Friday afternoon.

    The people say the shift to the new allocation will take place gradually as the fund watches market conditions closely. The Government Pension Investment Fund has already been slowly unloading its hefty domestic bondholdings in recent months.

    Market participants are paying close attention to signs of an allocation shift by the giant fund, as changes in its investment stance could mean a move of trillions of yen in global financial markets. Reports of the new allocation helped push up Japan’s benchmark Nikkei Stock Average by 1.7% during the morning session Friday.