(BFW) SMFG, Sumitomo Corp. to Order 200 Planes: Nikkei

200 planes, 120 from Airbus the rest from Boeing
Could be announced at farnborough today

BFW 07/15 03:57 *SMFG, SUMITOMO PLANE ORDER TO COME MOSTLY FROM AIRBUS: NIKKEI
BFW 07/15 03:57 *SMFG, SUMITOMO CORP. TO ORDER 200 PLANES: NIKKEI
 BN 07/15 03:52 *SMFG, SUMITOMO PLANE ORDER TO COME MOSTLY FROM AIRBUS: NIKKEI
 BN 07/15 03:52 *SMFG, SUMITOMO CORP. TO ORDER 200 PLANES: NIKKEI
SMFG, Sumitomo Corp. to Order 200 Planes: Nikkei
2014-07-15 04:08:22.466 GMT


By Lily Nonomiya
     July 15 (Bloomberg) -- Leasing subsidiary SMBC Aviation
Capital will receive order over 10 years in an investment likely
to cost ~2t yen, Nikkei newspaper reports, without citing
anyone.
  * Cos. plan to order ~120 planes from Airbus, may get rest
    from Boeing: Nikkei
  * Cos. could announce purchase plan as soon as today at
    Farnborough Airshow: Nikkei
  * Cos. plans to lease planes to low-cost carriers in Asia,
    Europe as well as small airlines: Nikkei

Link to Company News:{8053 JP <Equity> CN <GO>}
Link to Company News:{8316 JP <Equity> CN <GO>}
Link to Company News:{AIR FP <Equity> CN <GO>}
Link to Company News:{BA US <Equity> CN <GO>}

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To contact the editor responsible for this story:
Lily Nonomiya at +81-3-3201-2056 or
lnonomiya@bloomberg.net

>>> Asian Update

Asian Market Update: China M2, new lending hit multi-month highs; BOJ maintains assessment, lowers GDP target

***Economic Data***
- (JP) BANK OF JAPAN (BOJ) POLICY STATEMENT: REITERATES TO INCREASE MONETARY BASE AT ANNUAL PACE OF ¥60-70T (AS EXPECTED); Lowers FY14/15 GPD target to 1.0% from 1.1%
- (CN) CHINA JUN NEW YUAN LOANS (CNY): 1.08T V 955.0BE; 5-month high
- (CN) CHINA JUN M2 MONEY SUPPLY Y/Y: 14.7% (10-month high) V 13.6%E; M1 MONEY SUPPLY Y/Y: 8.9% V 6.3%E
- (CN) CHINA JUN-END FOREIGN RESERVES: $3.999T V $3.980TE
- (CN) CHINA JUN AGGREGATE FINANCING (CNY): 1.970T V 1.425TE
- (CN) CHINA JUN ACTUAL FOREIGN DIRECT INVESTMENT (FDI) Y/Y: +0.2% V -6.7% PRIOR; YTD (H1) y/y: +2.2% (13-month low) at $63.3B vs 2.8% prior
- (AU) AUSTRALIA JUN NEW MOTOR VEHICLE SALES M/M: 1.7% V 0.4% PRIOR; Y/Y: -2.2% V -1.7% PRIOR

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.8%, S&P/ASX -0.2%, Kospi +0.8%, Shanghai Composite flat, Hang Seng +0.5%, Sept S&P500 +0.1% at 1,972

***Commodities/Fixed Income/Currencies***
- Aug gold flat at $1,308, Aug crude oil flat at $100.90/brl, Sept Copper -0.5% at $3.23/lb
- (CN) PBoC to drain CNY20B in 28-day repos (5th consecutive drain)
- GLD: SPDR Gold Trust ETF daily holdings rise 8.6 tonnes to 808.7 tonnes (highest level since Apr 7th, biggest increase since Aug 2011)

***Market Focal Points/Key Themes***
- Shanghai Composite is flat in the afternoon trade on mixed economic data. M2 money supply hit a 10-month high and new Yuan loans a 5-month high, while foreign direct investment growth is flat for June and at a 13-month low on YTD basis. Separately, NEA reported June power consumption growth rose to 5.9% from 5.3%. China Q2 GDP and the rest of June economic data are on tap for tomorrow.

- BOJ policy decision produced little reaction in Japan equities and currency markets. As rumored in the press, BOJ cut its FY14/15 GPD forecast to 1.0% from 1.1% as part of its quarterly review of targets, but also maintained projections for FY15/16 and FY16/17 GDP as well as FY14-17 CPI. BOJ also maintained its economic assessment for the 12th consecutive meeting, reiterating its view on all segments of the economy. Regarding forward outlook, BOJ added the "effects of decline in demand following front-loaded increase prior to consumption tax hike are expected to wane gradually." Also of note, Japanese press speculated the Cabinet Office would boost its economic outlook in the upcoming monthly report for the first time since January.

- RBA meeting minutes from July 1st were largely a reiteration of the statement, solidifying expectations of rates remaining unchanged despite the "historically high" level of the exchange rate. As after the release of the statement, AUD saw a brief and modest lift, with fixed income markets tipping back in favor of a rate hold over the 12-month period.

- Financial press indicated Microsoft will announce job cuts that could eclipse the 2009 layoffs, just as investors prepare for several notable tech names reporting earnings this week. That MSFT announcement could also come as early as this week, although the company is not scheduled to report Q2 until Jul 22nd.

- East Ukraine stand-off continues to simmer, with both sides seemingly preparing for a decisive confrontation around Donetsk. On Monday evening, US State Dept announced it was confident that Russia is sending more tanks toward the border, equipping separatists with heavy weapons. Earlier today, reports surfaced of another Ukraine military aircraft shut down in the east. Ukraine officials believe Russia may have been directly responsible.

***Equities***
US markets:
- CDXS: Signs Technology Collaboration and License Agreement with GSK; Eligible to receive up to $25M; +84.4% afterhours
- VLO: Guides Q2 EPS $1.10-1.25 v $1.40e; -3.5% afterhours
- APOL: Informed by Dept of Education that it will conduct an "ordinary" review of University of Phoenix's administration of federal student financial aid - filing; -3.6% afterhours

- MSFT: Said to announce job cut as early as this week that may exceed 5.8K layoffs in 2009 - financial press
- LGF: Lionsgate and Alibaba form strategic collaboration to offer Lionsgate Entertainment World service in China

Notable movers by sector:
- Materials: Whitehaven Coal WHC.AU +4.6% (Q4 coal production results); Oz Minerals OZL.AU (initially rising by over 3.5% following Q2 production results)
- Industrials: China International Marine Containers Group 2039.HK +1.0% (H1 guidance); Weichai Power 2338.HK +1.6% (H1 guidance); Zoomlion Heavy Industry Science and Technology 1157.HK -3.0% (H1 guidance)
- Technology: Tencent Holdings 700.HK +0.5% (US techs higher earlier today); Leshi Internet Info & Tech 300104.CN flat (H1 guidance); Wangsu Science & Technology 300017.CN -8.9% (H1 guidance); Seiko Epson Corp 6724.JP -1.9% (press speculation on Q1 results)
- Utilities: Kyushu Electric Power 9508.JP +0.8% (expects safety plans endorsement from authority)
- Telecom: ZTE Corp 763.HK +6.9% (raises H1 guidance)

>>> US After Hours

After Hours Summary: PPHM +2.3%, VLO -3.4%, LEDS -2.9% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: PPHM +2.3%

Companies trading higher in after hours in reaction to news: CDXS +84.4% (announced technology collaboration and license agreement with GSK; co to receive up to $25 mln of initial payments, plus additional milestone and royalty opportunities), SAVE +1.5% (Lone Pine Capital discloses 6.0% passive stake in 13G filing), MEMP +0.4% (co and subsidiary intend to offer $500 mln in aggregate principal amount of senior unsecured notes due 2022 in a private placement to eligible purchasers)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: VLO -3.4%, LEDS -2.9%

Companies trading lower in after hours in reaction to news: OPTT -8.5% (disclosed Victorian Wave Partners, an indirect consolidated subsidiary, intends to terminate the Renewable Energy Demonstration Program Funding Deed), APOL -6.2% (announced that it has been informed by the U.S. Department of Education that the Department intends to conduct an ordinary course program review of University of Phoenix's administration of federal student financial aid (Title IV) programs) ADHD -1.8% (filed for $100 mln offering of ordinary shares), BH -1.7% (filed for $85 mln common stock and rights offering)

>>> US Close+0,68% Dow+0,46% S&P Nasdaq+0,57%

Closing Market Summary: Stocks Climb Amid M&A Activity

The major averages started the new trading week on an upbeat note, but the bulk of the action on Monday took place at the start of the session. The S&P 500 rose 0.5% with nine sectors registering gains, while the Dow Jones Industrial Average (+0.7%) outperformed. For its part, the small-cap Russell 2000 (+0.5%) settled in the middle of its trading range after showing relative strength at the start.

Equity indices received an opening boost from the financial sector (+0.6%), which in turn, was underpinned by Citigroup (C 48.42, +1.42) after the bank reported its earnings. Shares of Citigroup jumped 3.0% in reaction to above-consensus results that excluded the impact of a $3.8 billion charge stemming from settlements related to RMBS and CDO-related claims. The financial sector, meanwhile, spent the entire session in a steady retreat from its early high.

Although financials slipped from their opening levels, that void was filled by other influential sectors like energy (+0.9%) and technology (+0.8%).

The top-weighted S&P 500 sector—technology—rallied on the back of its largest components. Apple (AAPL 96.45, +1.23), Google (GOOGL 594.26, +7.61), Facebook (FB 67.90, +1.56), and IBM (IBM 189.87, +1.87) gained between 1.0% and 2.4% to name a few. However, chipmakers were not as strong with the PHLX Semiconductor Index tacking on 0.4%.

Elsewhere, the energy sector was boosted by M&A activity, while crude oil ended the session little changed at $100.99/bbl. On the acquisition front, Kodiak Oil & Gas (KOG 14.91, +0.68) rose 4.8% after agreeing to be acquired by Whiting Petroleum (WLL 84.58, +6.04) for $6 billion.

The energy sector was not the only source of M&A news as industrials (+0.6%) and health care (+0.4%) also benefitted from deals.

Among industrials, URS (URS 58.40, +6.38) surged 12.3% after agreeing to be acquired by Aecom (ACM 34.98, +3.22) for $56.31 per share. Furthermore, defense contractors and transports also displayed relative strength with the PHLX Defense Index and the Dow Jones Transportation Average both adding 0.7%.

On the countercyclical side, health care was limited to a gain of 0.4% even though Shire Pharmaceuticals (SHPG 254.27, +5.21) jumped 2.1% on reports it will accept a $53 billion takeover bid from AbbVie (ABBV 54.85, -0.11). Also of note, Mylan (MYL 51.24, +1.04) struck a $5.3 billion deal to purchase Abbott's (ABT 41.82, +0.52) non-US developed markets specialty and branded generics business.

Similar to health care, other countercyclical sectors also ended behind the broader market. Consumer staples (+0.4%) and telecom services (+0.3%) posted modest gains, while the utilities sector lost 1.2%.

Treasuries ended near their lows with the 10-yr yield up two basis points at 2.54%.

Participation was well below average as less than 600 million shares changed hands at the NYSE.

Tomorrow, the Retail Sales report for June (consensus 0.7%), June import/export prices, and the July Empire Manufacturing survey (consensus 13.2) will be released at 8:30 ET, while the Business Inventories report for May (consensus 0.6%) will cross the wires at 10:00 ET. Also of note, Fed Chair Janet Yellen will appear before the Senate Banking Committee to provide her semiannual testimony on the economy and monetary policy.

* S&P 500 +7.0% YTD  * Nasdaq Composite +6.3% YTD  * Dow Jones Industrial Average +2.9% YTD  * Russell 2000 +0.2% YTD

>>> Citigroup - Conference Call

* Notes Citi Holdings (bad bank) turned its first profit since the unit was created following the financial crisis (48.52 +1.52)

* Making headwinds in cost reduction
International franchise is performing well; Korea seeing notable improvement... reducing the drag of Citi Holdings... says trade finance showing improvement.

* Sees improved revenue performance in 2H

* Retail Banking: Down YoY on lower mortgage refinancing activity. Up QoQ on higher mortgage revenues and improved deposit spreads offset by a one-time gain in 1Q'14

* Fixed Income Revenues -22% q/q; Equity -25% q/q; Security Services +7% q/q

* Expects NIM to remain flat with Q2 levels over 2H14 (Q2 NIM was 2.87%, down 3 bps q/q)

* Citi Holdings will remain profitable for rest of 2014

* Overall market conditions will be improved in 2H14

* Consumer banking revenues should grow in 2H14... sees revenue growth in International Consumer in 2H14... says core operating expenses will continue to decline... have an overall favorable outlook in terms of credit performance; expects reserve releases to be lower in 2H14... expect tax ratre to be broadly in line with 1H14 level of 32%.

>>> US Gapping down

Gapping down:
In reaction to disappointing earnings/guidance: HLIT -1.8% (light volume).

M&A news: ABBV -1.9% (Shire plc announced that it requested and has received a further revised proposal from AbbVie (ABBV); revised proposal comprises GBP 24.44 in cash and 0.8960 shares of new ABBV per SHPG share), GA -0.7% (Giant Interactive announces shareholders' approval of merger agreement ).

Metals/mining stocks trading lower: CDE -3.7%, AEM -2.7%, GFI -2.5%, AU -2.3%, SLW -2%, GDX -1.9%, GOLD -1.9%, ABX -1.6% (partners with Ma'aden to form Jabal Sayid JV ), AG -1.3%, GLD -1.1%.

Other news: X -1.2% (President and CEO applauds decision from U.S. Department of Commerce on Oil County Tubular Goods trade case ), MHR -0.5% (Reports Mid-Year 2014 Proved Reserves of 79.8 MMBoe; Proved Reserves Up 7.7 Million BOE From Year-End 2013 Volumes; PV-10 Increased $84.9 Million to $916.3 Million), VRX -0.4% (Allergan comments on Pershing Square's definitive proxy solicitation; urges stockholders to take no action at this time).

Analyst comments: GTAT -5.3% (attributed to Credit Agricole comments suggesting iPhone sapphire cover issues), FMC -1.5% ( downgraded to Hold from Buy at Jefferies), TRIP -1.2% ( downgraded to Neutral from Buy at Nomura), DWA -1% ( downgraded to Neutral from Buy at B. Riley & Co), YELP -0.9% (initiated with an Underweight at Evercore; tgt $65), EBAY -0.7% (downgraded to Sector Perform from Outperform at Pacific Crest), DAN -0.6% (downgraded to Neutral from Buy at Goldman), WFC -0.6% (downgraded to Neutral from Overweight at JP Morgan), USG -0.5% (downgraded to Sector Perform at RBC Capital Mkts; tgt lowered to $30), APAM -0.4% ( downgraded to Mkt Perform from Outperform at Keefe Bruyette), COV -0.3% (downgraded to Neutral from Overweight at Piper Jaffray ), VMC -0.2% (downgraded to Sector Perform at RBC Capital Mkts)

>>> US Gapping up

Gapping up

M&A related: URS +7.1% and ACM +6.3% (AECOM to acquire URS for $56.31/share in cash and stock; ACM reaffirms target FY14 EPS; ACM expects the combination to be accretive to its GAAP earnings per share and more than 25% accretive to its cash earnings per share in FY15), MYL +5.6% and ABT +2.3% (Mylan Labs confirms plans to purchase Abbott's non-U.S. developed markets specialty and branded generics business in an all-stock transaction; immediately and significantly accretive to earnings, with opportunity to accelerate target of at least $6.00 in adjusted diluted EPS in 2018 ), SHPG +1.6% (Shire plc announced that it requested and has received a further revised proposal from AbbVie (ABBV); revised proposal comprises GBP 24.44 in cash and 0.8960 shares of new ABBV per SHPG share), GTIV +1.1% (Kindred Healthcare increases all-cash tender offer for Gentiva to $16.00 Per Share), LO +0.6% and RAI +0.4% (Smoking related lawsuits are leveling off which may help LO/ RAI merger, according to reports; Barron's profiles positive view on RAI and LO; RAI upgraded to Outperform at RBC Capital Mkts), KOG +0.8% / WLL +0.4% (Kodiak Oil & Gas to be acquired by Whiting Petroleum; transaction valued at $6 bln; KOG shareholders will receive .177 of a share of WLL in exchange for each share of KOG they hold representing $13.90/share).

Select telecom names showing strength: PT +4.4%, ERIC +2.3%, VOD +1%, ORAN +1% (Positive Barron's mention).

Other news: PGNX +15.8% (FDA Office of Drug Evaluation III Approves Salix's Request that the FDA Approve the RELISTOR Subcutaneous Injection sNDA for the Treatment of Opioid-induced Constipation in Patients with Chronic Non-cancer Pain), EXEL +15.3% (Exelixis announces positive top-line results for Phase 3 Pivotal Trial of Cobimetinib in combination with Vemurafenib in patients with BRAF V600 mutation-positive advanced melanoma), CREG +12.7% (announces $50 mln Standby Equity Distribution Agreement to fund business growth), PRAN +10.3% (still checking), RDC +6.9% (still checking, following NE news), PSTI +6.4% (still checking), AUMN +6.2% ( announce it restarted mining at its Velardena Properties on July 1, 2014), TESO +4.4% (announces $100 mln normal course issuer bid), KNDI +3.9% (China will mandate 30% electric car usage by 2016, according to reports), OHRP +1.9% (Visium Asset Management discloses 5.2% passive stake in 13G filing), KOG +1.9% (Kodiak Oil & Gas to be acquired by Whiting Petroleum (WLL); transaction valued at $6 bln; KOG shareholders will receive .177 of a share of WLL in exchange for each share of KOG they hold representing $13.90/share), IGT +1.2% (agrees to install its Advantage 9.1 System Suite along with sbX Media Manager at Northern Quest Resort & Casino), NE +1.1% (approves spin-off of Paragon Offshore; sets July 23 record date and August 1 distribution date), AAPL +1.1% ( upgraded to Overweight from Equal Weight at Barclays; tgt raised to $110 from $95; Apple has denied location data China security risk reports, according to reports; also may hire new ad agency, according to reports), C +0.9% ( announces Comprehensive Settlement with Residential Mortgage-Backed Securities Working Group -- Citigroup will pay a total of $4.5 billion in cash and provide $2.5 billion in consumer relief), CRMB +0.8% (entered into an Asset Purchase Agreement through which Lemonis Fischer Acquisition Company will acquire the Crumbs' business ), AMZN +0.8% (to charge 1 cent for delivery in France following ban on free shipping, according to reports ), GOOG +0.6% (YouTube plans to increase premium content, according to reports), BA +0.6% (positive Barron's mention), TRMB +0.6% (acquires the Omega Group to expand its public safety solutions; financial terms were not disclosed), AA +0.2% (files for $5 bln mixed securities shelf offering; announces a 10-year, $1.1 bln agreement with Pratt & Whitney, a division of UTX, for jet engine components)

Analyst comments: ICPT +2.6% ( initiated with a Buy at Deutsche Bank; tgt $395), EAT +1.5% (upgraded to Overweight from Neutral at JP Morgan), STX +0.4% ( tgt raised to $74 from $64 at Deutsche Bank),

>>> Citigroup Q2 adj. EPS $1.24 (net income $3.9 bln) ex-leg

Citigroup Q2 adj. EPS $1.24 (net income $3.9 bln) ex-legal charges and CVA/DVA vs. $1.07 CIQ Consensus

EPS excludes the impact of a $3.8 billion charge ($3.7 billion after-tax) to settle RMBS and CDO-related claims, which consisted of $3.7 billion in legal expenses and a $55 million loan loss reserve build, each recorded in Citi Holdings.  CVA/DVA (also excluded) was negative $33 million (negative $20 million after-tax) in the second quarter 2014, compared to positive $477 million ($293 million after-tax) in the prior year period. Excluding CVA/DVA in both periods, second quarter revenues of $19.4 billion declined 3% from the prior year period. GAAP EPS was $0.03 Tangible book value +1% QoQ to $56.89

>>> US Early premarket gappers

Early premarket gappers

Gapping up: EXEL +15.3%, CREG +12.7%, RDC +6.9%, PSTI +6.4%, URS +4.8%, MYL +4.6%, TESO +4.4%, PT +4.4%, SHPG +3%, OHRP +1.9%, KOG +1.9%, ABT +1.5%, NE +1.1%, AAPL +1.1%, ORAN +1%, CRMB +0.8%, AMZN +0.8%, GOOG +0.6%

Gapping down: JCI -5%, GFI -2.5%, AU -2.3%, SLW -2%, GDX -1.9%, ABX -1.6%, GLD -1.1%, GA -0.7%, VRX -0.4%