(BFW) Intesa to Pump EU170b Into Italy Economy, Gros-Pietro Tells Sole

Intesa to Pump EU170b Into Italy Economy, Gros-Pietro Tells Sole
2014-06-19 06:23:25.486 GMT


By Daniele Lepido
     June 19 (Bloomberg) -- “This is our commitment for next 4
years,” Il Sole 24 Ore reports, citing intw with Intesa
Sanpaolo Chairman of Mgmt Board Gian Maria Gros-Pietro.
  * Reduction plan for local units to 6 from 17 “goes ahead":
    Gros-Pietro in Sole
  * NOTE: Intesa CEO Sees Negative Deposit Rates From ECB
    Meeting in June NSN N66TIF6S972O<GO>

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dlepido1@bloomberg.net

(BFW) Soros Buys 1% of Liberbank for About EU10m, El Economista Says

 BN 06/19 06:20 *SOROS BUYS 1% OF LIBERBANK FOR ABOUT EU10M, EL ECONOMISTA SAYS
Soros Buys 1% of Liberbank for About EU10m, El Economista Says
2014-06-19 06:25:03.489 GMT


By Ben Sills
     June 19 (Bloomberg) -- Soros Fund Management buys stake in
former savings bank as part of EU575m capital increase, El
Economista says, without saying how it obtained the information.

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>>> T-Mobile US/Sprint talks enter late states; Softbank chief works to placate

T-Mobile US/Sprint talks enter late states; Softbank chief works to placate US regulators

Softbank CEO Masayoshi Son is making full use of his personal connections to placate US regulators as the negotiations between Sprint and T-Mobile US enter late stages, the Nihon Keizai Shimbun reported.

The Japanese-language report disclosed that Son has been using his personal connections with former US Secretary of State Colin Powell to lobby US regulators who are seen to be opposed to the planned takeover of T-Mobile US by Softbank’s subsidiary Sprint.

The two men first met about a year ago in connection with a joint venture business in Japan named Bloom Energy, in which Powell is an outside director, the report said. When they met again over dinner in Washington in March, Powell reportedly agreed that a T-Mobile US deal would promote competition and urged Son to do his best. Although Powell is not in the position to directly affect policy, he has strong personal connections across all US political parties, and his influence on communications policies is not small, the report said.

Moreover, his son, Michael Powell, is a former chairman of the Federal Communications Commission (FCC). Son has also hired Bruce Gottlieb, former legal advisor to former FCC Commissioner Michael Copps, the report noted. Gottlieb was an outside advisor when Softbank acquired Sprint.

Sprint is expected to reach agreement on a deal to acquire T-Mobile US for an estimated USD 32bn sometime this summer, the report said.

T-Mobile US is majority owned by Deutsche Telekom.


Source Nihon Keizai Shimbun

>>> Schneider Electric could be preparing assets sale

Schneider Electric could be preparing assets sale 

Listed French energy management group Schneider Electric (EPA:SU) is understood to be considering a disposal programme including assets sale, French daily Le Figaro reported. The report cited labour union sources as saying that the French group is working on a plan to re-organise its plants in France, but could also be preparing the sale of some of its assets as part of its three-year plan to be presented at the end of 2014.


Source Le Figaro

>>> What to look at today - 19/06/2014

US Market closed higher on nFOMC news ($10b tapper as expected + lowered size of monthly asset purchases to $35b)...The Fed reiterated its commitment to the current level of interest rates, saying rates are likely to remain low for a considerable time after quantitative easing ends. Furthermore, the FOMC released its economic projections, but those were not too different from the prior forecast either. According to the projections, the Fed expects the jobless rate to be between 6.0% and 6.1% at the end of the year after calling for a rate between 6.1% and 6.3% in its last set of projections.
Utilities best perf, countercyclical sectors, telecom services (+0.5%) lagged, while consumer staples (+1.2%) and health care (+0.8%) finished ahead of the broader market...With Mkt rallying on highs VIX traded on lows VIX @ 10.60 -12.1%...Volume were still light @ 610mil shares...Redhat +5% after hopurs on good numbers...Asian markets trading higher on back of FOMC...Nikkei +1.34% HS+0.17% Shanghai -0.8%

Eur$1.3590 FUT : S&P +0.05% EuroStoxx +0.89% FTSE +0.56% DAX+0.68% SMI +0.63%

Macro :
- China Premier Li Keqiang: China growth rate has moderated, but not at risk of hard landing
- World Bank Chief Economist Basu: China may face similar financial crisis in the future as US experienced; China's increasing credit size would only delay the inevitable correction
- SNB Says Conditions Better, Substantial Risks Remain for Banks
- JPMorgan Sees Rally for Emerging Stocks on Growth, Profits {NSN N7E92O6TTDS2 <go>}
- India Allowed to Pay Iran $1.6b by U.S., EU: Express Link
- U.S. May Up Iraq Involvement Within Days; Basrah Worry: Height
- IMF to Urge ECB to Consider U.S.-Style Quantitative Easing: FT
- Germany’s Schaeuble Says Stability Pact Rules to Stay

Keep an eye on :
- AF FP : Air France, Lufthansa Lobby EU Vs Gulf Air Companies: Tribune
- ALO FP : Mitsubishi Wants Veto on Alstom in Steam Turbine Tenders: Figaro
- ALO FP : *ALSTOM DEAL WOULDN'T ADDRESS ITS STRUCTURAL ISSUES, MOODYS SAYS
- AZA IM : Alitalia Unions Won’t Accept Planned Layoffs: Filt CGIL
- BG/ LN : BG Group to Start Queensland Asset Sale Within Month: Australian
- BG/ LN : BG Cut to Underperform at Credit Suisse, See Challenging Year
- BNP FP : U.S. Said to Fail to Agree on Possible Fine: Reuters
- BPE IM : Pop Emilia Romagna Says Shr Sale to Start June 23
- CGG FP : CGG, Sovcomflot Form JV Focused on 3D Seismic in Arctic Region
- CSGN VX : Norges BAnk Raises stake in Credit Suisse to 5.01%
- DBK GY : BlackRock, Pimco Sue Banks on Losses Tied to Housing Bust: WSJ
- DTE GY : Moody’s: Sprint Buying T-Mobile Would Be High-Risk, High-Return
- FNC IM : Finmeccanica Denies Plans to Incorporate AnsaldoBreda
- G IM : Generali May Have Deal to Sell Unit in June: Reuters
- GENL LN : Genel Best Placed to Benefit From Kurdistan Piped Exports: MS
- KGF LN : Too Early To Sell Kingfisher, Credit Suisse Says
- LLOY LN : Said to Consider Selling More Shares in TSB Unit IPO
- MAERSK DC : Explores Plan B in Wake Of China Blocking P3 Freight-Ship Pac
- NDA SS : Nordea Gives 300 Employees in Sweden Notice Amid Cost Cuts: DI
- NOVN VX : Overweight Novartis, JPMorgan Says After Management Meeting
- OR FP : L’Oreal’s Agon Sees More Acquisitions After NYX Cosmetics Deal
- PTC PL : Ratings Raised to Investment Grade by Moody’s
- RNO FP : Global Cement Shares Undervalued, More M&A Possible: Jefferies
- RR/ LN : Investor Meeting 10am ldn time
- SAS SS : SAS Seeking Role in Industry Consolidation, CEO Tells Berlingske
- SDRL NO : Seadrill Partners to Sell 6.1m Units via BoAML, Morgan Stanley
- SPR GY : Axel Springer Said to Buy Stake in Privacy-Focused Website Qwant
- STAN LN : Standard Chartered 1Q Weak Trends Continue, Credit Suisse Says
- SU FP : Schneider May Be Planning Further Job Cuts, Le Figaro Says
- UCG IM : UniCredit to Raise Stake in Romanian Tiriac Unit: Messaggero

>>> Brokers Upgrades & Downgrades - 19/06/2014

>>> Up
*DERWENT LONDON RAISED TO BUY VS HOLD AT SOCGEN
*FOSCHINI RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*GENEL ENERGY RAISED TO OVERWEIGHT AT MORGAN STANLEY
*IMMOFINANZ RAISED TO HOLD VS SELL AT SOCGEN
*INTU PROPERTIES RAISED TO HOLD VS SELL AT SOCGEN
*PLAYTECH RAISED TO BUY VS NEUTRAL AT NOMURA
*ROTORK RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*RYANAIR RAISED TO BUY VS NEUTRAL AT UBS

>>> Down
*AFFINE CUT TO HOLD VS BUY AT SOCGEN
*AIR FRANCE CUT TO SELL VS NEUTRAL AT UBS
*ALTAREA COGEDIM CUT TO HOLD VS BUY AT SOCGEN
*BEFIMMO CUT TO HOLD VS BUY AT SOCGEN
*BG CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*CTT CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*EUROCOMMERCIAL PROPERTIES CUT TO HOLD VS BUY AT SOCGEN
*GSW IMMOBILIEN CUT TO SELL VS HOLD AT SOCGEN
*H&M CUT TO HOLD VS BUY AT DEUTSCHE BANK
*IGD CUT TO HOLD VS BUY AT SOCGEN
*KLEPIERRE CUT TO HOLD VS BUY AT SOCGEN
*LEGAL & GENERAL CUT TO SELL VS HOLD AT SOCGEN
*RUSHYDRO CUT TO UNDERPERFORM VS NEUTRAL AT BOFAML
*UNIBAIL CUT TO HOLD VS BUY AT SOCGEN
*VODAFONE CUT TO NEUTRAL VS BUY AT BOFAML
*WERELDHAVE CUT TO HOLD VS BUY AT SOCGEN

>>> PT Change


>>> Initiation
*APPLUS RATED NEW OUTPERFORM AT CREDIT SUISSE, PT EU20
*BUZZI UNICEM RE-INITIATED BUY AT JEFFERIES
*CEMEX RE-INITIATED HOLD AT JEFFERIES
*DNO RATED NEW EQUALWEIGHT AT MORGAN STANLEY, PT NKR24
*GENOMIC VISION RATED NEW BUY AT SOCGEN, PT EU19
*GULF KEYSTONE RATED NEW UNDERWEIGHT AT MORGAN STANLEY, PT 78P
*HEIDELBERGCEMENT RE-INITIATED HOLD AT JEFFERIES
*HOLCIM RE-INITIATED BUY AT JEFFERIES; PT SF102
*ITALCEMENTI RE-INITIATED BUY AT JEFFERIES; PT EU13.8
*LAFARGE RE-INITIATED BUY AT JEFFERIES; PT EU84
*TITAN CEMENT RE-INITIATED HOLD AT JEFFERIES

>>> Call
>> Stock
*DEUTSCHE ANNINGTON ADDED TO PREMIUM LIST AT SOCGEN
*SKF REMOVED FROM PREMIUM LIST AT SOCGEN
>> Sector
* *EUROPEAN REAL ESTATE RAISED TO NEUTRAL AT SOCGEN
* Global Cement Shares Undervalued, More M&A Possible: Jefferies {NSN N7EHCL6JTSEP <go>}
* UBS Plays Down M&A in European Aerospace & Defense {NSN N7EF996KLVR5 <go>}
* Low Cost Carriers’ Market Share to Continue to Grow, UBS Says {NSN N7EDZ66JIJV7 <go>}

FT : IMF calls on ECB to consider quantitative easing

The International Monetary Fund is expected to sound the alarm on Thursday over the risk of deflation within the eurozone and to urge the European Central Bank to consider US-style quantitative easing, including “large-scale” purchases of sovereign bonds, to stimulate growth.
The warning, contained in a draft concluding statement of the IMF’s annual evaluation of the eurozone’s economic health obtained by the Financial Times, threatens to reignite a tense debate within the EU over how to respond to the risk of a Japan-style “lost decade” of stagnant growth.

The IMF evaluation, to be presented by managing director Christine Lagarde to eurozone finance ministers on Thursday in Luxembourg, credits the EU with taking “strong policy action” that “laid the foundations for recovery” after the eurozone crisis. But it also concludes that both debt levels and unemployment remain too high and could impair a return to “robust” growth.
While the fund welcomes recent measures adopted by the ECB, which earlier this month took the unprecedented step of cutting one of its key interest rates below zero and offering up to €400bn in cheap loans to banks who agree to lend to small businesses, it suggests they may not be enough.
The draft IMF statement finds that eurozone “inflation is worryingly low, including in the core countries”, stifling demand and growth. If prices continue to rise slowly, the IMF argues, the ECB should consider following the US Federal Reserve, the Bank of Japan and the Bank of England by purchasing sovereign bonds.
“If inflation remains stubbornly low, the ECB should consider a large-scale asset purchase programme, primarily of sovereign assets according to the ECB’s capital key,” the statement reads. “This would boost confidence, improve corporate and household balance sheets, and stimulate bank lending.”
At 0.5 per cent, eurozone inflation is little over a quarter of the ECB target of below but close to 2 per cent. Although the IMF could revise its recommendations after discussions with finance ministers, in the past such changes have been minimal.


Germany has been buffeted recently by a domestic fight over this month’s ECB’s measures. Although the influential Bundesbank backed the ECB governing council’s decision, German bankers attacked the move, saying it unfairly punished savers.
The IMF has repeatedly urged the ECB to be more aggressive throughout the eurozone crisis, and some IMF officials have urged such US-style bond purchases in the past. But coming just two weeks after the controversial ECB decision – and in the IMF’s signature annual review of the eurozone’s economy – the public warning could cause a new storm within Germany.

In a speech in March, Jens Weidmann, the Bundesbank president, said QE was not “generally out of the question”. However, he added that his assessment of whether the scheme violates the ECB’s mandate, which prohibits the monetary financing of governments, would be “a strict one”.
ECB-watchers also believe the German public would be hostile to large-scale asset purchases by the central bank, seeing them as a bailout of the eurozone’s weaker members.
Mario Draghi, the ECB president, has signalled the central bank would be ready to embark on QE should inflation remain worryingly low. However, many analysts viewed the strength of the steps announced earlier this month as an attempt by the central bank to avoid having to resort to government bond buying at least until the end of this year.
The differences between the IMF and ECB over eurozone monetary policy have in recent months led Mr Draghi to squabble publicly with the fund. During a news conference in April, he sarcastically thanked the IMF for being “extremely generous in its suggestions”, adding that it should pay equal attention to the US Federal Reserve – implying that the IMF has unfairly singled out the ECB for criticism.

(BFW) Ex-Goldman Trader Salem Says Bonus Unfairly Cut to $8.25m

 BN 06/18 21:26 Ex-Goldman Trader Salem Says Bonus Unfairly Cut to $8.25 Million
Ex-Goldman Trader Salem Says Bonus Unfairly Cut to $8.25m
2014-06-19 02:47:21.715 GMT


By Michael J. Moore
     June 18 (Bloomberg) -- Deeb Salem, a former Goldman Sachs
Group trader who said he helped the bank earn >$7b, wants to be
paid the almost $5m difference between his 2010 bonus and what
he told his mother to expect.
  * Salem said in an arbitration hearing that he was led to
    believe that his 2010 bonus would be $13m, down from $15m
    award for 2009 when he was paid more than CEO Lloyd C.
    Blankfein
  * Salem said bonus was unfairly docked because of a written
    warning he received about his 2007 self-evaluation
  * Salem, 35, said $8.25m bonus for 2010 didn’t reflect his
    contributions, while Goldman argued he was aware the firm
    could pay him whatever it wished and that co. considered his
    conduct in determining compensation
Story


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JPMorgan Sees Rally for Emerging Stocks on Growth, Profits

+------------------------------------------------------------------------------+

BFW 06/19 01:57 *MALAYSIA, SOUTH AFRICA, CHILE, PERU STOCKS CUT AT JPMORGAN BFW 06/19 01:57 *KOREA STOCKS CUT TO NEUTRAL AT JPMORGAN,MALAYSIA TO UNDERWEIGHT BFW 06/19 01:57 *RUSSIA STOCKS UPGRADED TO OVERWEIGHT AT JPMORGAN BN 06/19 01:56 *MALAYSIA, SOUTH AFRICA, CHILE, PERU STOCKS CUT AT JPMORGAN BN 06/19 01:56 *KOREA STOCKS CUT TO NEUTRAL AT JPMORGAN,MALAYSIA TO UNDERWEIGHT BN 06/19 01:56 *RUSSIA STOCKS UPGRADED TO OVERWEIGHT AT JPMORGAN BN 06/19 01:56 *EMERGING STOCKS BULL MARKET WILL CONTINUE IN 2H, JPMORGAN SAYS

+------------------------------------------------------------------------------+

JPMorgan Sees Rally for Emerging Stocks on Growth, Profits 2014-06-19 02:18:24.304 GMT

By Bloomberg News June 19 (Bloomberg) -- JPMorgan says it’s confident that the emerging-market stocks bull market will continue into the second half because economic growth will accelerate and earnings growth will quicken next year. * Emerging markets are joining the “axis of easing,” with Chile, Hungary and Russia likely to join Turkey and Mexico in cutting interest rates, JPMorgan strategists led by Adrian Mowat wrote in a report dated today. * NOTE: EM stocks +4.6% this year * Shift to easing in many emerging markets will likely intensify inflows: report * Equities in Russia boosted to overweight {NSN N7DZNL6KLVSA<Go>}, while those in South Korea and Peru cut to neutral and shares in Malaysia, Chile and South Africa reduced to underweight: report * JPMorgan cuts Korean stocks due to outlook for Samsung Electronics and Hyundai Motor; investors concerned iPhone6 will hurt Samsung smartphone volumes and margins, while Hyundai share price not responding to automaker’s new models: report

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