>>> Aerospace Sector - Boeing forecasts demand for 36,770 new airplanes valued a

Boeing forecasts demand for 36,770 new airplanes valued at $5.2 trln

Co projects a demand for 36,770 new airplanes over the next 20 years, an increase of 4.2% from last year's forecast. The company released its annual Current Market Outlook in London, estimating the total value of those new airplanes at $5.2 trillion.
  • Fueling this year's forecast is the single-aisle market, which is projected to be the fastest growing and most dynamic segment due to the continued emergence of low-cost carriers. 25,680 new airplanes will be needed in this segment, making up 70 percent of the total units in the forecast.
  • Boeing forecasts that 8,600 new airplanes will be needed in the twin-aisle segment, led by small widebody airplanes in the 200 to 300 seat range such as the 787-8 and 787-9 Dreamliner. This year's forecast reflects a continued shift in demand from very large airplanes to efficient new twin-engine products such as the 787-10 and new 777X.

(Deutsche Bank) Turkish Equities Strategy

* 2H14 outlook: Gearing down from risk-on to selectivity

* Further relative re-rating unlikely, as certain challenges in Turkey and overseas rise to the top of the agenda
Equities have risen a significant 27% since late March on eased political risks,
subdued inflationary pressure in the US, the ECB’s significant liquidity addition,
revert of monetary policies and also a reversal in the earnings revision cycle.
The sharp rally has been justified by a relative decrease in tail risks, as well as
attractive valuations at the time, and that TR equities could continue to rise in
absolute terms as long as capital flows in. We reduce our RF rate by 100bps to
reflect the changed risk perception, and our new bottom-up index target of
c.87,400 now offers 14% upside potential. Although P/E/ EV/EBITDA multiples
are climbing to 11x/8.7x and trading almost at par vs. EM peers, we believe
near-term catalysts are largely priced in. We think further outperformance will
be intimidated by issues like Iraqi contagion, a potential rise of political tension,
the kick-start of the Fed’s monetary policy normalization process sooner than
expected and less attractive relative valuations.

* Banks: further outperformance to rely on fundamentals; selectiveness required
The NIM outlook has improved, the normalization process in CoRs is likely to
be slower on improvement in the growth outlook and strength in collections,
and fee revenues should be higher through acceleration in retail loan growth.
Owing to expectations of a stronger top line and the relatively better asset
quality outlook, banks have rallied from March-end, while the revision cycle
has reversed. We think further outperformance will rely on fundamentals, and
that parameters like liquidity, the strength of the deposit franchise, the extent
of the maturity mismatch, the structure of the loan book and the vulnerability
to regulatory risks have all been differentiating factors across TR banks. We
recommend Overweight positions in REIT, Telecom, Metals & Mining, White
Goods, Aviation and Construction, are Underweight on Utilities, Beverages,
Retail, Insurance and Oil & Gas, and Neutral on Banks, Autos and Glass.

* Top picks: Arcelik, Aygaz, CCI, Emlak, Ford Otosan, Garanti, Sabanci, Turkcell
We are adding Garanti to our picks (upgraded to Buy) on a relatively more
favorable risk/reward profile post valuation/earnings increases and a poor
performance vs. its peers over the last three months (page 15). Emlak REIT is
one of our top picks, as the stock is still trading at a c.17% discount to NAV,
while current NAV is yet to capture recent tenders, implying a higher effective
discount (c.25%). Arcelik is now top pick, as a decent play on potential
European market recovery and potential stronger performance in electronics in
2014/15. We remove Turkish Airlines from the list, as, from a tactical point of
view, we see risks to the downside, given the rising geopolitical risk that could
increase oil prices and downside risks on consensus earnings estimates.

>>> GlaxoSmithKline could be working on USD 15 per share cash bid for Raptor Pha

GlaxoSmithKline could be working on USD 15 per share cash bid for Raptor Pharmaceutical Corp 

GlaxoSmithkline, an FTSE-100 pharmaceuticals group, could be working on a USD 15 (EUR 11.02) per share cash bid for the listed Novato, California-based biopharmaceuticals company, Raptor Pharmaceutical Corp., The Daily Mail reported. The newspaper’s market report did not cite a source for the rumours.

The item said Raptor seems vulnerable due to the impending retirement of the chief executive and founder Christopher Starr.

Raptor Pharmaceuticals’ market capitalisation stood at USD 684m at the close of trading in New York last night, 9 July.





Source Daily Mail

>>> Burberry accelerated bookbuild smal £ 70mil

Burberry accelerated bookbuild
Offering Details

Company: Burberry

Ticker: BRBY LN

Offering Type: Accelerated Bookbuild

Offer Size: £70m approx.

# shares: 4.77m

Pricing: Based on market price

Selling Shareholder: Undisclosed

Stamp Duty of 0.5% applies
Normal market commission applies

>>> US Aerospace & Defense electronics: Deutsche Bank A&D 2Q preview

Aerospace & Defense electronics: Deutsche Bank A&D 2Q preview

Deutsche Bank notes commercial aero stocks are about flat YTD on avg while defense stocks have appreciated 9%. Commercial stocks have taken a pause after last year's strong performance, while defense stocks continue to perform well (though have underperformed the overall market over the past 3 mos). DB thinks the current breather being taken in commercial stocks is healthy, but will turn up post better 2Q earnings season and into the Farnborough Air show.
  • As such, Deutsche Bank likes Boeing (BA), Hexcel (HXL), General Dynamics (GD), and Embraer (ERJ) into the Q.
  • In the note, DB raised target prices:
    • UTX to $130 from $127; Buy
    • GD to $126 from $122; Buy
    • LLL to $131 from $130; Buy
    • BEAV to $95 from $94; Hold

-- > Who is reporting When ? read across for European names that have underperforming lately...
BA : 23/07
HXL : 21/07
GD : 23/07
ERJ : 23/07
UTX : 22/07
LLL : 25/07
BEAV : 23/07

in Europe
SAF FP : 31/07
AIR FP : 30/07
ZC FP : 30/07
RR/ LN : 31/07
HO FP : 24/07

>>> Burberry reports Q1 trading update; retail revs +17% Yoy; comps +12%

Burberry reports Q1 trading update; retail revs +17% Yoy; comps +12%
Reports retail revenue GBP370 mln, up 17% underlying (up 9% at reported FX) may not compare to revs of $397.1 mln CIQ est
  • Comparable sales up 12%
    • In line with co's expectations for the quarter, driven by planned investment
    • Double-digit growth in Asia Pacific and Americas; low single-digit growth in EMEIA
    • Double-digit growth across all three main product categories
    • Digital continued to outperform in all regions
  • Ongoing brand momentum driven by consistent execution of strategies
    • Record customer engagement through digital, including Shanghai event and mens runway show
    • Four mainline stores opened; three in key European airports for the travelling luxury customer
    • Strong customer response to product, especially mens tailoring, womens Prorsum and solid leather accessories
  • The key drivers of retail growth remained consistent with previous periods
  • Reflecting evolving consumer behaviour, traffic remained soft offline but grew online
  • Conversion increased both offline and online, driven by our investment in customer service
  • Digital continued to outperform in all regions, reflecting more targeted marketing and continued strong customer response to services such as orders taken on iPads in-store and collect-in-store
By product
  • In mainline, there was double-digit growth in mens, womens and accessories, with balanced performance across fashion and replenishment
  • Mens tailoring, womens Spring/Summer 2014 Prorsum and iconic rainwear all performed well, reflecting our focus on these categories
  • In accessories, solid leather continued to increase its share of the large leather goods mix
Outlook
  • Retail: In FY 2015, net new space is still expected to contribute low to mid single-digit percentage growth to total retail revenue.
  • Wholesale: Excluding Beauty, Burberry continues to expect wholesale revenue at constant exchange rates to be broadly unchanged in the six months to 30 September 2014 (2013: GBP244m). For Beauty, the fifth product division, wholesale revenue is still expected to grow by about 25% at constant exchange rates in FY 2015.
  • Retail/wholesale profit: If exchange rates* remain at current levels, the full impact on reported retail/wholesale profit in FY 2015 will be material. As an indication, rebasing FY 2014 retail/wholesale profit for current effective exchange rates would now reduce reported profit by about GBP55m (H1 weighted) and adjusted operating margin from 17.5% to around 16%.
  • Licensing: For FY 2015, Burberry continues to expect broadly unchanged revenue at constant exchange rates in both Japan and global product licences. At current exchange rates*, reported licensing revenue in FY 2015 will be reduced by about GBP10m given the movement in the sterling/yen rate.

(BFW) Shire CEO Says Co. More Valuable If Independent: Boersen-Zeitung

Shire CEO Says Co. More Valuable If Independent: Boersen-Zeitung
2014-07-10 06:34:55.288 GMT


By Alessandro Speciale
     July 10 (Bloomberg) -- “Abbvie seems actually to want to
optimize its tax situation with a takeover of Shire,” Shire CEO
Flemming Ornskov says in interview with Germany’s Boersen-
Zeitung.
  * “Our board has come to the conclusion that Shire as an
    autonomous company can generate more value for all
    stakeholders than if it is taken over for the offered
    price:” Ornskov
  * “Our board checked the first three offers and found them
    clearly too low compared with the alternative of
    independence”
  * NOTE: AbbVie Seen Raising Shire Offer Fifth Time to Win Tax


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

To contact the reporter on this story:
Alessandro Speciale in Frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net
To contact the editor responsible for this story:
Craig Stirling at +44-20-7673-2841 or
cstirling1@bloomberg.net

>>> What to look at today - 10/07/2014

US Market closed Higher helped by FOMC Minutes that revealed the belief among officials that investors have displayed too much complacency with regard to risk. Furthermore, the minutes indicated that the committee has discussed its exit strategy tools with the general expectation of a final $15 billion taper taking place in October if the current outlook holds up, investors were reassured by the consistency of the message, even if surprised by gold & treasuries closing near highs, utilities was the only sector on the downside after 2 days of outperf., volume were light @ 557mil shares...VIX @ 11,65 -3%...St Louis Fed President Bullard (not a FOMC voter) was surprisingly more hawkish, said the US
unemployment could fall below 6% in the next 2 reports, leading to higher inflation and a more expedient tightening response from the FOMC than investors expect...China June trade surplus was up 16% y/y but still came in shy of consensus at $31.6B. Exports were up over 7% which was below the 10% estimate, while exports to US, EU, and Japan were all up in the single digits. H1 shipments of crude oil, iron ore, and Copper were up 10%, 19%, and 26% respectively. Customs office spokesperson Zhang attributed this month's surplus to fiscal policy measures, and also forecasted Q3 exports growth to top Q2 levels. Note that China Q2 GDP data will be released next week...Bank of Korea held rates unchanged for 14th consecutive month but this time one central bank member voted in favor of a policy easing...BOK also lowered its 2014 and 2015 targets for GDP to 3.8% and 4.0% from 4.0% and 4.2% prior...Nikkei -0.38% Hang Seng +0.37%...Shanghai +0.24%

Eur$ 1.3644 S&P -0.11% EuroStoxx+0.04% FTSE +0.07% Dax+0.03% SMI +0.11%

Macro
- Japan machinery orders plunge in May (-19.5% in May vs April, +0.7% expected ), sharpest fall since at least 2005 (after -9.1% in April)
- Draghi: Structural Reforms Essential for ECB Measures to Work
- China Exports Trail Estimates as Global Demand Limited: Economy
- China’s Copper Imports Hit 14-Month Low as Financing Unwinds

Keep an eye on :
- ACS SM : Acs to Buy Back 25% of Clece Unit, Expansion Reports
- AIR FP : Airbus A330Neo Said to Move Ahead With View to Air Show Launch
- AIR FP : IndiGo Said to Be in Talks With Airbus on $20.6 Billion of Jets
- ALO FP : Alstom Unrecognisable In a Year, Worth Buying, Berenberg Says
- BATS LN : Reynolds/Lorillard Deal Most Likely Outcome, Wells Fargo Says
- BES PL : BES Shareholders to Vote on New Chairman, CEO and CFO on July 31
- BMW GY : 1114 HK +0.91%
- CBK GY : Commerzbank May Settle U.S. Probe for $600m-$800m: Reuters Link
- DNB NO : DNB 2Q Profit Rises; Sees 3% to 4% Annual Lending Volume Growth
- EDF FP : EDF Renewable Seeks Sale of U.S. Wind Portfolio: SparkSpread
- ENEL IM : Enel Board May Name Advisers for Asset Sales Today, Sole Says
- ENI IM : Eni CEO Talks With Unions on Refining Reorganization Break Off
- FNC IM : Finmeccanica Signs Revolving Credit Line Refinancing to 2019
- GOW SM : Gowex CEO Garcia Reduced Stake Below 50% During 1H
- GXI GY : Gerresheimer 2Q Adj. Ebitda, Rev. Beat Ests.; Keeps Forecast
- HEI GY : HeidelbergCement would consider buying operations to be divested by Holcim/Lafarge
- LHA GY : Lufthansa interested in acquisitions and partnerships - Basler Zeitung
- LSE LN : Qatar Holding Sells About One-Third of LSE Stake,from 15,3% to 10,3%, 1900-1956 Pence Each, BofA&Citi
- PUB FP : Publicis CEO Asks Managers for Advice After Deal Fails: WSJ Link
- SAN FP : Sanofi Confirms It May Sell Mature Drugs, L’Usine Nouvelle Says
- SCHP VX : Schindler Boosts Stake in Chinese Joint Venture
- RCF FP : Teleperformance to Buy Aegis USA for $610m
- SW FP : Sodexo Did `Modest Revision' to Revenue Forecast, CFO Says
- SZU GY : Suedzucker 1Q Sales In Line With Ests., Confirms FY Forecast
- EIFF FP : Tour Eiffel: Eurobail waives tender offer; SMABTP only bid remaining
- TRYG DC : Tryg 2Q Profit Before Tax Beats Est. as Combined Ratio Improves