(BFW) LVMH’s Zenith Says 2014 Won’t Be a Great Year, L’Agefi Reports

LVMH’s Zenith Says 2014 Won’t Be a Great Year, L’Agefi Reports
2014-10-13 06:30:12.242 GMT


By Thomas Mulier
Oct. 13 (Bloomberg) -- Sales will increase by a single-
digit percentage in best-case scenario, and will be stable if
end of the year is bad, Aldo Magada, head of the luxury watch
brand, says in interview with L’Agefi.
* Brand gets 40% of sales from Asia, 40% from Europe, 15% from
North and South America, 5% from Middle East: L’Agefi
* U.S. is market showing strongest growth, with double-digit
increase: L’Agefi
* Brand will stop selling watches with mechanisms made by
third parties such as Sellita next yr to focus on self-made
products: L’Agefi
* Zenith “isn’t in the same market” as smartwatches: Magada


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>>> CSX rejects merger overture from Canadian Pacific Railway

CSX rejects merger overture from Canadian Pacific Railway 

CSX Corp, a Florida-based railway group, has rejected a merger approach from Canadian Pacific Railway, the Wall Street Journal reported online.

Citing unnamed people with knowledge of the matter, the paper said it remains unclear if Calgary-based Canadian Pacific Railway will give up its merger hope following the rebuff of CSX's approach last week.

The combined CSX and Canadian Pacific Railway would have a market value of roughly USD 62bn, the report said.


Source Wall Street Journal

>>> London Mining bondholders hire PwC to conduct talks with potential buyers; J

London Mining bondholders hire PwC to conduct talks with potential buyers; JSW Steel, Frank Timis make offers for debt, Glencore not interested

Holders of London Mining bonds have hired the accountancy firm PwC to conduct talks with potential buyers of the listed UK-based iron ore miner, The Sunday Times reported. The newspaper said the bondholders are led by Standard Chartered, but did not cite a source for the claim.

London Mining on Friday, 10 October announced that takeover discussions had ended and requested a suspension in trading in its shares, the item noted. It is expected that the company will tomorrow announce that it has entered administration, according to the report.

Jindal Group subsidiary JSW Steel has made an offer for London Mining’s debt substantially below face value, the item said, adding that the mining entrepreneur Frank Timis is also believed to have made an offer via his family investment vehicle, Timis Corporation.

Glencore, an FTSE-100 commodities trading group, was thinking about makimg a bid for control of London Mining but said this weekend that it was no longer planning to make an offer, the article continued.

A Reuters report on Friday, 10 October cited a source with direct knowledge of the negotiations who said on Friday that JSW Steel was very close to a deal to acquire London Mining.

The Reuters report cited two other sources with knowledge of the situation who confirmed that London Mining was within days of a deal, but did not identify JSW.

An article in The Times on 12 October cited unspecified reports that JSW Steel was to acquire London Mining’s Marampa mine. London Mining said in its announcement on Friday that it was in discussions with a potential buyer for Marampa the item noted.


Source Sunday Times, Reuters, The Times

>>> PT Portugal suitor Altice mandates advisors for bid

PT Portugal suitor Altice mandates advisors for bid 

Altice has hired lawyers and financial advisors for its bid to acquire PT Portugal from Oi, the Brazilian telco, reported Diario Economico.

Sources familiar with the situation told the business paper that Altice has hired Uria Menendez Proenca de Carvalho as legal advisors for its PT Portugal bid. Perella Weinberg, Morgan Stanley, Goldman Sachs, BTG Pactual are among financial advisors mandated by Altice, the report said.

Meanwhile, Diario de Noticias reported that Oi has lined up various meetings this week with Portugal Telecom (PT) shareholders including Ongoing, which owns 10% of PT via its holding company RSH.

Elsewhere, Expresso cited sources close to the situation as saying Altice has yet to make a concrete proposal for PT Portugal but wants to move swiftly to wrap up a deal when Oi decides to sell its Portuguese assets, which are reportedly worth around EUR 6.7bn. Altice, however, views this evaluation of PT Portugal as too high, the same sources said.


Source Diario Economico, Diario de Noticias, Expresso

>>> What to look at today : 13th of October

Following the steep decline in the US markets on Friday, Asian bourses are trading markedly lower on concerns related to the global economic recovery. US equity futures are pointing to extension of last week's selloff, dragged down by Ebola fears after confirmation that a medical worker in Dallas who cared for deceased patient from west Africa also contracted the disease. This marks the first Ebola infection in the US, and should continue to weigh on the travel industry...China September exports surged 15.3% from the prior year, handily beating estimates of 12.0%. Overall the trade balance came in as a surplus of $31.0B, lower than the expected $41.1B. Closely-tracked imports rose 7.0%, above the expected decline of 2.0%. Following the release of the trade data, an official from China Customs said the country faces difficulties in achieving an annual
trade growth target of 7.5%, but expects trade to improve over the next 2-3 months....Also of note in China, PBoC Gov Zhou reiterated the central bank would maintain prudent monetary policy, and that inflation would remain stable. PBoC top economic advisor Ma Jun added that China's slowing economy does not need any big stimulus, with the job market remaining strong...Fed Vice Chair Fischer spoke over the weekend, expressing uncertainty regarding FOMC economic projections and steering on the side of caution. Fischer noted Europe has become a major concern and may yet encounter recession or deflation, while also affirming the Fed is monitoring the headwinds from the stronger dollar...Nikkei -1.15% Hang Sang -0.62% ...Shanghai -0.71%

Eur$ 1.2671 S&P -0.51% EuroStoxx -1.17% FTSE -1.17% Dax -1.10% CAC -1.31% SMI -1.06%

Macro
- Fed Vice Chair Fischer: Fed itself does not know when rates will start to rise because policy is data dependent 
- Carney Sees Investment Funds Pose Risk to Financial Stability
- Japan Trade Union Confederation (Rengo) to seek 2% or more increase in base pay as part of collective bargaining negotiations next spring - Nikkei
- China Sept. Vehicle Sales 1.98m Units vs 1.72m in August

Keep an eye on :
- AC FP : Accor Makes Indicative Offer for Starwood’s Louvre Hotels: Echos
- ACL LN : Acal 1H Sales Rise; Sees Strong Growth in 1H Underlying Profit
- AF FP : Air France to Create Low Cost Unit If Pilots Refuse Plan: JDD
- BO DC : Bang & Olufsen Sees Sales Growth of ~10%: WirtschaftsWoche
- DBK GY : Bank's provisions for legal costs may rise up to €7B, about 30% more than previously accounted for and expected - German press - Last year's costs were €3B
- HDD GY : Heidelberger Druck May Cut Up to 500 More Jobs: Handelsblatt
- EDL FP :Saudi Prince to Buy Shares in Euro Disney Rescue: Daily Mail
- F IM : Fiat Chrysler Plans to Sell Shares Held by Co. Treasury
- GALP PL : Galp Raised Output in Third Quarter, Processed Less Crude
- GAS SM : To offer up to $3.3B to acquire Chile's largest power distributor Compañía General de Electricidad- Offering $7.93/shr
- GSZ FP : GDF Suez Considering Bid for Talisman Energy, Sunday Times Says
- GWI1 GY : Gerry Weber Sales to Reach EU1b ‘Soon,’ CEO Tells Welt
- KNIN VX : Kuehne & Nagel 3Q Ebit Rises, Confirms 2014 Volume Forecasts
- LOND LN : India's JSW Steel said to be nearing a deal to buy London Mining - financial press
- LUX IM : Luxottica CEO resigned, Luxottica to Meet Tomorrow on CEO’s Intention to Resign
- NOVN VX : Novartis Fined 3b Rupees by Indian Regulator: Standard Link
- QPP LN : Quindell 3Q Ebitda, Sales Advance; Boosts Lower Margin Range
- RR/ LN : Rolls-Royce Needs Strategy Shift to Soar - WSJ
- SAP GY : Salesforce.com Plans to Overtake SAP, WirtschaftsWoche Says
- SCMN VX : Swisscom could fetch a price of EUR 5bn for Fastweb
- SN/ LN : Smith & Nephew: HP802-247 Did Not Meet Primary Endpoint
- STL LN : Statoil Sells 15.5% in Shah Deniz to Petronas for $2.25b
- HO FP : Thales to Provide More Security Solutions for Aviation: Levy
- TLW LN : Tullow Oil Says Facing Labor Unrest in Northern Kenya: Reuters
- VOW3 GY : VW Employee Rep Says EU5B Savings Goal Achievable, FAZ Says
- VOW3 GY : VW May Cut Temps for Efficiency Goals, Winterkorn Says: Spiegel
- WAC GY : Wacker Neuson Sees EU2b Sales, CFO Tells Boersen-Zeitung

>>> Brokers Upgrades & Downgrades - 13th of October 2014

>>> Up
*ALFA LAVAL RAISED TO HOLD AT DNB
*ANGLO AMERICAN RAISED TO OUTPERFORM AT CREDIT SUISSE
*ASTRAZENECA RAISED TO BUY AT JEFFERIES
*CENTRICA RAISED TO MARKETPERFORM VS UNDERPERFORM AT BERNSTEIN

>>> Down
*INFINEON CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*LUXOTTICA CUT TO NEUTRAL VS BUY AT CITI, PT EU38.50 VS EU47
*NOKIAN RENKAAT RAISED TO STRONG BUY AT NORDEA
*STMICROELECTRONICS CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN

>>> Pt Changes


>>> Initiation
*MUNICH RE RATED NEW HOLD AT JEFFERIES
*ST. JAMES’S PLACE RATED NEW BUY AT CITI, PT 810P
*SWISS RE RATED NEW BUY AT JEFFERIES

>>> Call
>> Sector
*EUROPEAN CONSUMER SERVICES SECTOR CUT TO UNDERWEIGHT AT HSBC
*EUROPEAN TECH HARDWARE SECTOR RAISED TO NEUTRAL AT HSBC
*EUROPEAN SEMICONDUCTORS SECTOR CUT TO NEUTRAL AT HSBC
*EUROPEAN INSURANCE SECTOR RAISED TO NEUTRAL AT HSBC
*EUROPEAN FOOD RETAILING SECTOR RAISED TO NEUTRAL AT HSBC
*EUROPEAN SOFTWARE SECTOR RAISED TO OVERWEIGHT AT HSBC
>> Stock
*BARCLAYS, GDF SUEZ ADDED TO HSBC EUROPE SUPER 10 PORTFOLIO
*RANDSTAD, AKER SOLUTIONS EXIT HSBC EUROPE SUPER 10 PORTFOLIO

>>> Fed Vice Chair Fischer: Fed itself does not know when rates

Fed Vice Chair Fischer: Fed itself does not know when rates will start to rise because policy is data dependent 
- Rate path is subject to uncertainty in forecasts
- Fed will wait to raise rates until it believes the economy is strong enough to withstand rate lift off
- Weak growth in Europe is a major concern, can't say if recession or deflation will emerge in Europe. If global growth is much slower than forecast the Fed rate liftoff would come later.
- Do not see inflation on the horizon
- Fed will include currency moves in its calculations if necessary. Recent FX moves reflect underlying policies. Currency depreciations are acceptable as long as it reflects fundamentals and is not part of 'beggar thy neighbor' strategy
- Market interest rates are roughly correct in expectations of Fed action

>>> Asian Update

Asian Market Update: China exports growth recovers; Ebola strikes again in Dallas

***Economic Data*** - (CN) CHINA SEPT TRADE BALANCE: $31.0B (5-month low) V $41.1BE; Exports Y/Y: 15.3% v 12.0%e; Imports Y/Y: +7.0% v -2.0%e - (AU) AUSTRALIA AUG CREDIT CARD BALANCES: A$49.5B V A$49.4B PRIOR; CREDIT CARD PURCHASES: A$22.3B V A$23.4B PRIOR - (NZ) NEW ZEALAND SEPT FOOD PRICES M/M: -0.8% (biggest decline in 7 months) V +0.3% PRIOR - (NZ) New Zealand REINZ Sept House Price Index: 3,933 v 3,926 prior; M/M: +0.2% v +1.1% prior; House Sales Y/Y: -10.2% v -16.3% prior

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 closed, S&P/ASX -0.6%, Kospi -0.5%, Shanghai Composite -1.1%, Hang Seng -0.8%, Sept S&P500 -0.5% at 1,885

***Commodities/Fixed Income*** - Dec gold +1.0% at $1,234, Nov crude oil -1.1% at $84.86/brl - USD/CNY: ECB said to discuss whether to add RMB to fx reserves - financial press - (CN) China to raise resource tax on crude oil and natural gas to 6% from 5%; To levy resource tax on coal from 2-10%, effective on Dec 1st - financial press

***Market Focal Points/Key Themes/FX*** - Following the steep decline in the US markets on Friday, Asian bourses are trading markedly lower on concerns related to the global economic recovery. US equity futures are pointing to extension of last week's selloff, dragged down by Ebola fears after confirmation that a medical worker in Dallas who cared for deceased patient from west Africa also contracted the disease. This marks the first Ebola infection in the US, and should continue to weigh on the travel industry.

- China September exports surged 15.3% from the prior year, handily beating estimates of 12.0%. Overall the trade balance came in as a surplus of $31.0B, lower than the expected $41.1B. Closely-tracked imports rose 7.0%, above the expected decline of 2.0%. Following the release of the trade data, an official from China Customs said the country faces difficulties in achieving an annual trade growth target of 7.5%, but expects trade to improve over the next 2-3 months.

- Also of note in China, PBoC Gov Zhou reiterated the central bank would maintain prudent monetary policy, and that inflation would remain stable. PBoC top economic advisor Ma Jun added that China's slowing economy does not need any big stimulus, with the job market remaining strong.

- Press reports indicated that China plans to raise the resource tax on crude oil and natural gas, as well as coal. There was also some speculation that China will levy taxes on iron ore. Coke futures in China traded higher by 2%, while iron ore traded limit up 4%.

- WTI and Brent crude lost over a percent, also extending losses from last week, after the Kuwait oil minister on Sunday said that OPEC is not likely to cut production to support falling prices. He also does not expect prices to fall below $76-77/barrel, noting that members were still able to adjust to current prices.

- Fed Vice Chair Fischer spoke over the weekend, expressing uncertainty regarding FOMC economic projections and steering on the side of caution. Fischer noted Europe has become a major concern and may yet encounter recession or deflation, while also affirming the Fed is monitoring the headwinds from the stronger dollar.

***Equities*** US markets: - CSX: Said to have rebuffed merger proposal from Canadian Pacific last week - financial press - SHLD: Discloses data breach at Kmart; certain debit and credit card numbers have been compromised - filing

Notable movers by sector: - Financials: Agile Property 3383.HK -20.3% (Chairman home arrested) - Energy: Offshore Oil Engineering 600583.CN +0.4% (awarded orders) - Industrials: AviChina Industry & Technology 2357.HK -3.8% (acquisition); China State Construction Holdings 3311.HK -4.3% (Sept results); WDS Ltd WDS.AU -66.7% (FY15 guidance) - Technology: Synertone Communication 1613.HK +8.6% (enters MOU to issue shares)