>>> What to look at today - 17/06/2014

US Market closed near the flat line, market is on wait mode in front of Wednesday's FOMC meeting...volume was light at 591mil shares, not a single sector that ended the day up, or down, more than 1.0%...VIX @ 12,65 +3,86%...Aussie dollar moved sharply lower on the release of RBA policy meeting minutes from earlier this month that were widely deemed more dovish than expected - AUD/USD and AUD/JPY fell over 30pips to $0.9360 and ¥95.40 respectively...Woodside (WPL AU) were halted on news of Shell will cut its satke from 23% to 4.5% for about $5b, woodside will buy half of these shares...- Moody's comments noted China's sovereign credit profile is likely to withstand rebalancing challenges, and that its Aa3 rating and stable outlook are underpinned by its macroeconomic strengths as well as by its fiscal and external cushions. Ratings agency did warn that the success of policy measures will be critical for China's ability to negotiate the challenges on the horizon

Eur$1.3560 Fut : S&P +0.13% Eurostoxx +0.12% FTSE +0.2% Dax+0.16% SMI +0.27%

Macro
- Fed Will Raise Rates Faster Than Investors Expect, Survey Shows

Keep an eye on :
- ALO FP : Alstom’s Board to Study Siemens-Mitsubishi Offer in Coming Days
- ALO FP : GE Says It Won’t Engage in a Bidding War for Alstom
- ASOS LN : Overweight Asos, Long-Term Story Intact, JPMorgan Says
- ATLN VX : Buy Actelion, May Be 20% Upside to 2016 Consensus EPS, UBS Says
- AZA IM : Alitalia Board Approves EU200m Capital Increase, Messaggero Says
- AZN LN : AstraZeneca Said to Hire Adviser for Potential Cancer Deals: WSJ
- EN FP : Bouygues Says Not Contacted by Mitsubishi, France Over Alstom
- EN FP : Bouygues Telecom Starts 4G+ Offer
- BP/ LN : BP to Sign $20 Billion LNG Supply Deal With China's Cnooc Today
- CGG FP : Awarded contrat in Saudi Arabia
- CLN VX : Overweight Clariant, JPMorgan Says Ahead of Capital Markets Day
- INGA NA : Buy ING, May Look to Spin off Remaining NN Shares, UBS Says
- MTL US : Russia May Spend RU215b to Bailout Mechel: Kommersant
- NESN VX : Nestle to Focus on Revitalizing Nescafe Brand: WSJ Link
- NOVN VX : Novartis Submits Meningitis B Candidate Bexsero to FDA
- RDSA NA : Shell to raise $5bn with Woodside stake sale - FT
- RSA LN : RSA Seeks Buyers for Asian Operations for Up to $500m: Reuters
- RTO LN : Buy Rentokil, Pull-Back Provides Buying Opportunity, RBC Says
- STAN LN : Said to have sold two units in South Korea for approx $148M in cash
- SAL IM : Salini Costruttori Secondary Placement Up to 100m Shrs
- SCMN VX : Swisscom Increases Offer For PubliGroupe to CHF214/shr
- SHP LN : Shire Hires Citi as It Braces for Takeover Offers: Reuters
- TEMN SW : Temenos to Return Up to $120m Through a Share Buyback Program
- UL FP : Unibail to offer CB (ORNANE) €435m (to €500) 01/07/2021

>>> Brokers Upgrades & Downgrades - 17/06/2014

>>> Up
*ACTELION RAISED TO BUY VS HOLD AT DEUTSCHE BANK
*BANCO POPULAR RAISED TO OVERWEIGHT AT BARCLAYS
*BANCO SABADELL RAISED TO OVERWEIGHTT AT BARCLAYS
*DEUTSCHE ANNINGTON RAISED TO OVERWEIGHT AT HSBC
*DEUTSCHE WOHNEN RAISED TO NEUTRAL AT HSBC
*ERAMET RAISED TO BUY VS HOLD AT SOCGEN
*FINNAIR RAISED TO BUY VS HOLD AT NORDEA
*GENERALI RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*RHEINMETALL RAISED TO BUY VS HOLD AT BERENBERG
*UNICREDIT RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS

>>> Down
*BBVA CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*EURASIA DRILLING CUT TO NEUTRAL VS BUY AT UBS
*INTL PERSONAL FIN CUT TO SECTOR PERFORM AT RBC CAPITAL
*SECHE ENVIRONNEMENT CUT TO NEUTRAL VS BUY AT ODDO
*SUBSEA 7 CUT TO HOLD VS BUY AT BERENBERG

>>> PT Change
*Actelion PT Raised to SF130 vs SF100 at Jefferies

>>> Initiation
*AIRBUS GROUP RATED NEW BUY AT BERENBERG; PT EU60.5
*BAE SYSTEMS RATED NEW HOLD AT BERENBERG; PT 445P
*COBHAM RATED NEW HOLD AT BERENBERG; PT 325P
*GKN RATED NEW BUY AT BERENBERG; PT 440P
*MEGGITT RATED NEW BUY AT BERENBERG; PT 600P
*QINETIQ RATED NEW HOLD AT BERENBERG; PT 225P
*ROLLS-ROYCE RATED NEW BUY AT BERENBERG; PT 1,216P
*SAFRAN RATED NEW BUY AT BERENBERG; PT EU62.5
*TELEFONICA DEUTSCHLAND RATED NEW BUY AT SANTANDER, PT EU7
*ULTRA ELECTRONICS RATED NEW HOLD AT BERENBERG; PT 1,970P

>>> Call
>> Stock
*SWISSCOM REMOVED FROM UBS’S MOST PREFERRED LIST
*TELEFONICA DEUTSCHLAND ADDED TO UBS’S MOST PREFERRED LIST

>>> Unibail-Rodamco To offer convertible bonds


Unibail-Rodamco To offer convertible bonds
- Launches today an offering of net share settled bonds convertible into new shares and/or exchangeable for existing shares (ORNANE) due July 1, 2021 (the "Bonds"), for an initial nominal amount of approximately EUR435 million which may be increased up to a maximum nominal amount of approximately EUR500 million in the event of the exercise by Unibail-Rodamco in full of its option to increase the issue. 
- The Bonds will be issued at par

FT : GE moves to fend off rival bid for Alstom

General Electric is preparing to offer fresh concessions to the French government as it attempts to win approval for its $16.9bn bid for Alstom and head off a rival offer from Siemens and Mitsubishi Heavy Industries.
The US industrial conglomerate will bolster existing commitments it has made to protect French jobs with an offer to give Paris the option of having increased French investment in parts of the company if its deal was approved, according to people familiar with GE.

News of GE’s plan to sweeten its promises to the Élysée came just hours after Siemens and Mitsubishi on Monday unveiled their own joint bid for parts of the French industrial champion, including €7bn in cash.
GE has already ruled out improving the financial terms of its offer and entering into a bidding war.
The Siemens-Mitsubishi offer is more complex than GE’s bid and attempts to win over the Alstom board and the French state by setting up joint ventures and the possibility of creating a “European mobility champion”.
Siemens is offering €3.9bn for Alstom’s gas turbines business, while Japan’s Mitsubishi Heavy and partner Hitachi would inject €3.1bn and merge their operations with Alstom in three other energy areas.
Siemens and Mitsubishi have an uphill struggle this week to explain the merits of the bid to Alstom’s board, which has already accepted the GE bid and faces a break-up fee of 1.5 per cent of the purchase value if another offer is accepted.
The deal proposes that Mitsubishi create three joint ventures by acquiring 40 per cent of Alstom’s steam and nuclear business, 20 per cent of its grid business and 20 per cent of its hydro business in a “broad industrial alliance”.
Mitsubishi is also offering to acquire up to a 10 per cent stake in Alstom itself from Bouygues, the company’s largest shareholder. The alliance would enable the creation of more than 1,000 jobs in France, the company said.
Siemens said it would take all of Alstom’s gas business, including related service contracts, for €3.9bn in cash. It said it also “intends to study diligently in good faith” solutions to create a European champion in transport by combining assets.

Siemens said it intends to offer a job guarantee for three years in France and Germany for the transferred business after the closure of the transaction. GE already said it would create 1,000 new jobs in France within three years of its deal.
People close to Siemens and Mitsubishi acknowledge that Alstom’s board, and chief executive Patrick Kron in particular, remain inclined towards the GE offer, although they are lobbying to change the board’s position this week.

Michel Sapin, the finance minister, said on Sunday that he did not have “any preference” for a bidder, but that the government would defend jobs and investment, using new powers allowing the state to block foreign takeovers in sectors deemed strategic.
“Mitsubishi forming an alliance with Siemens improves Siemens’ offer,” Mr Sapin said in an interview broadcast simultaneously on Europe 1 radio and iTele. “I think that GE is also going to improve its offer.”
Alstom, which makes France’s TGV high-speed trains and was bailed out by the state a decade ago, has until June 23 to make a final choice on which offer to accept.
Joe Kaeser, Siemens’ chief executive. and Shunichi Miyanaga, MHI’s chief, will present the plan to President François Hollande on Tuesday morning and to France’s lower house of parliament on Tuesday afternoon, according to the parliamentary press office.
Their case will contain a thinly disguised appeal to French concerns about a GE takeover of Alstom’s top assets. “Our concept preserves Alstom almost as it is,” a senior Siemens executive said. “There is no dismantling and no bloodbath, but a concentration on growth. This is not about the money, it is about a long-term partnership, preserving a French icon.”
In a clear attempt to woo support from the French government, MHI said it had proposed that the state take a matching stake in Alstom. “We hope and we asked for participation by the government. We would be very happy to have such a situation,” said a senior MHI official.
Both MHI and Siemens insisted that their joint bid represented “significantly higher” financial value than the GE offer, suggesting it amounted to a premium of around €1bn to the rival bid on a “like for like” basis.

(BFW) Swisscom Increases Offer For PubliGroupe to CHF214/shr

Swisscom Increases Offer For PubliGroupe to CHF214/shr
2014-06-17 05:12:57.439 GMT


By Chris Malpass
     June 17 (Bloomberg) -- Swisscom reaches pact with
PubliGroupe and latter’s major holders to increase offer price.
  * PubliGroupe management supports Swisscom offer, recommends
    acceptance
  * Swisscom says 3 investors holding total 25.21% agree to
    accept offer, tender shares
    * Says previous May 27 agreement with Tamedia not affected
  * PubliGroupe board of directors rejects Tamedia’s CHF190
    offer as “insufficient”
    * Takes note of Swisscom agreements in investors Stiftung
      Jean-Robert Gerstenhauer, Consuela Stiftung,
      Erbengemeinschaft Alfred Borter
  * NOTE: Swisscom on May 16 offered CHF200/Shr for PubliGroupe
  * Swisscom statement
  * PubliGroup statement

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

To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
Chris Malpass

>>> Asian Update

Asian Market Update: RBA meeting minutes solidify policy on hold; Shell sheds Woodside stake for $5B

***Economic Data*** - (CN) CHINA MAY ACTUAL FOREIGN DIRECT INVESTMENT (FDI) YTD: 2.8% (1-year low) v 5.0% PRIOR; Y/Y: -6.7% v +3.4% PRIOR - (AU) AUSTRALIA MAY NEW MOTOR VEHICLE SALES M/M: 0.3% V 0.1% PRIOR; Y/Y: -2.0% V -1.8% PRIOR - (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 103.2 v 102.2 prior - (SG) SINGAPORE MAY ELECTRONIC EXPORTS Y/Y: -15.3% V -7.4%E; NON-OIL DOMESTIC EXPORTS M/M: -7.5% V 0.6%E; Y/Y: -6.6%E V 0.5%E

Market Snapshot (as of 03:30 GMT): - Nikkei225 +0.5%, S&P/ASX -0.2%, Kospi +0.2%, Shanghai Composite -0.7%, Hang Seng -0.4%, Jun S&P500 +0.2% at 1,931, Aug gold -0.3% at $1,271, Jul crude oil -0.3% at $106.63/brl

***Highlights/Observations/Insights*** - Aussie dollar moved sharply lower on the release of RBA policy meeting minutes from earlier this month that were widely deemed more dovish than expected - AUD/USD and AUD/JPY fell over 30pips to $0.9360 and ¥95.40 respectively, while AUD/NZD hit a 3-week low around NZ$1.08. Most notably, RBA concluded "GDP growth in Australia appeared to have been a little above trend... which was not expected to be sustained in coming quarters (amid) expectation of substantial falls in mining investment, below-average growth of public demand and non-mining investment remaining subdued for a time". This varies substantially from last month's assessment "that growth had picked up a little over the past two quarters" and marks the most clear sign that RBA will not rush to tighten policy until well into 2015.

- Also down under, shares of Australia's largest energy producer Woodside Petroleum were halted after announcement that Shell will slash its 23% stake in the company all the way to 4.5% for about $5B. Woodside will pick up half of those shares for $2.7B. Reports indicating the sell-off does not come as a complete surprise - Shell has long signalled it would reduce its holding.

- Moody's comments noted China's sovereign credit profile is likely to withstand rebalancing challenges, and that its Aa3 rating and stable outlook are underpinned by its macroeconomic strengths as well as by its fiscal and external cushions. Ratings agency did warn that the success of policy measures will be critical for China's ability to negotiate the challenges on the horizon.

- Latest out of the Middle East conflict in Iraq saw the White House negating speculation that US military will coordinate with Iran, indicating the possible discussions will not have a military dimension. Subsequent reports did suggest that US and Iran negotiators will discuss the situation in Iraq as part of Vienna talks that will also address Iran's nuclear program. Separately, US confirmed it will send 275 troops to Iraq for support of US personnel and embassy in Baghdad in light of the weekend terror bombing in the capital.

***Speakers/Political/In the Papers*** - (CN) China MOFCOM: Reiterates exports are gradually improving - (CN) China Dairy Association official: China lacks of sufficient dairy cattle to meet milk demand - People's Daily - (JP) Japan PM advisor Hamada: BOJ needs no further easing at this time; Japan should undergo a substantial corporate tax cut - financial press - (JP) Japan Fin Min Aso: Govt needs permanent replacement revenue for corporate tax cut; Considering reduction in pension payments regardless of price changes - press - (JP) According to the most recent QUICK survey, 31% of large FX market participants no longer expect BOJ to announce more easing, up from 9% in April survey - Nikkei - (IQ) US Pres Obama: US to deploy up to 275 troops to Iraq for support for US personnel, embassy in Baghdad - letter addressed to Congress - (IA) US, Iran to meet in Vienna to discuss situation in Iraq; meeting held alongside nuclear talks - financial press - (US) Fed reportedly considering bond fund exit fees to reduce chances of runs on the market - FT

***Fixed Income/Commodities/Currencies*** - (CN) PBoC to drain CNY30B in 28-day repos (34th consecutive drain) - GLD: SPDR Gold Trust ETF daily holdings fall 4.2 tonnes to 782.9 tonnes (lowest since May 23rd) - JGB: (JP) Japan's MoF sells ¥1.09T in 1.5% (1.5% prior) 20-year JGBs; Avg yield: 1.459% v 1.453% prior; bid-to-cover: 2.71x v 3.56x prior

***Equities*** US markets: - ANFI: Reports Q1 $0.47 v $0.31e, R$186.6M v $160Me; +27.6% afterhours - GTIV: Kindred increases offer to $14.50/shr from $14, begins tender offer for all outstanding shares; Total deal value $1.7B; +3.9% afterhours - WEX: To acquire Evolution1 for $532.5M in cash; +1.4% afterhours - STLD: Guides Q2 EPS $0.28-0.32 v $0.31e

Notable movers by sector: - Consumer Discretionary: Beijing Enlight Media 300251.CN +7.3% (acquisitions); Super Retail Group SUL.AU +1.6% (analyst action); Next Media 282.HK -5.3% (FY13/14 results) - Financials: Sumitomo Corp 8053.JP +0.8% (to sell stake in asset) - Materials: Orora Ltd ORA.AU +4.4% (analyst action); Itochu Corp 8001.JP +2.8% (profit target) - Industrials: Sufa Technology Industry 000777.CN +5.8%, Shenzhen Woer Heat-Shrinkable Material 002130.CN +8.6% (momentum on China Pres Xi's comment) - Technology: Konica Minolta Holdings 4902.JP +8.7% (analyst action); Lenovo Group 992.HK -0.6% (acquisition)

Buy Actelion, May Be 20% Upside to 2016 Consensus EPS, UBS Says

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

Buy Actelion, May Be 20% Upside to 2016 Consensus EPS, UBS Says 2014-06-17 03:51:39.523 GMT

By Roger Neill June 17 (Bloomberg) -- UBS reiterates buy, raises PT to SF120 vs SF100 on positive Selexipag data. * Expects upcoming presentation of full Phase III data to provide additional confidence Selexipag will be a blockbuster: UBS * This additional data, including post-hoc analysis, should be presented at CHEST 2014 on Oct. 25-30: UBS * Sees significant upside on Selexipag peak sales, Opsumit peak sales, Opsumit Gross margin * NOTE on June 16: Actelion Rises Most in 2 Yrs After Positive Selexipag Data * Actelion earnings forecasts For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

To contact the reporter on this story: Roger Neill in London at +44-20-7673-2867 or rneill3@bloomberg.net Morwenna Coniam

>>> US After Hours

After Hours Summary: ANFI +26.1%, SYUT +10.1%, EZPW +2.2%, KND -1.6%, KFY -0.3% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: ANFI +26.1%, SYUT +10.1%, EZPW +2.2%

Companies trading higher in after hours in reaction to news: SAEX +7.0% (announced $150 mln senior secured notes offering), GTIV +4.7% (Kindred Healthcare to commence all-cash tender offer to acquire all outstanding shares of Gentiva for $14.50/share), EW +14% (announces launch of SAPIEN XT valuve in the U.S.), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: KND -1.6%, KFY -0.3%

Companies trading lower in after hours in reaction to news: KONA -3.5% (announced proposed public offering of 2 mln shares of common stock), KND -1.6% (launched 9 mln share offering of common stock; co also made tender offer to acquire Gentiva and reaffirmed 2014 guidance), MRIN -1.1% (filed for ~1.72 mln share common stock offering by selling shareholders), WMB -1.0% (announced $3 bln public offering of common stock), MX -0.9% (co and SENIS AG signed a patent license agreement)

>>> US Close Dow+0,03% S&P+0,08% Nasdaq+0,24%

Closing Summary: A Wait-and-See Kind of Market
The stock market pretty much ran in circles on Monday, having closed the session close to where it began. Its indecisive nature was attributed to some worrisome-sounding headlines on the geopolitical front, yet the market action suggested it may have been owed more to a case of wait-and-see in front of Wednesday's FOMC meeting when a new policy directive will be issued along with updated economic and fed funds rate projections.

To the latter point, oil prices were little changed despite the news that the militant group, Islamic State of Iraq and Syria, took over yet another city in northern Iraq. The 10-yr note, gold prices, and the US Dollar Index, meanwhile, were also little changed, signalling that there wasn't a flight to safety on those headlines or the news that Russia cut off its gas supply to Ukraine after the two countries failed to agree on pricing.

In turn, a batch of better-than-expected economic data and another round of M&A activity highlighted by Medtronic's (MDT 60.03, -0.67) $42.9 bln acquisition of Covidien (COV 86.75, +14.73) failed to stir any concerted buying interest.

Market internals reflected an overall mixed disposition. The advance-decline line was roughly even at the NYSE and Nasdaq, volume was light at 591 mln shares, and there wasn't a single sector that ended the day up, or down, more than 1.0%. For good measure, only two Dow components -- Visa (V 210.24, -1.05) and Chevron (CVX 128.54, +1.28) -- closed more than a point away from where they ended on Friday.

The financial sector (-0.4%) underperformed all day while the utilities sector (+0.7%) outperformed all day. The former finished off its low while the latter finished off its high

Today's trading action in the S&P 500 was bounded between 1931 on the downside and 1941 on the upside. A little wave of buying interest in the closing minutes left it closer to the top end of that range than the bottom end when the closing bell rang.

The performance edge among the major indices went to the Nasdaq (+0.2%) and Russell 2000 (+0.3%), which benefited from some relative strength in Apple (AAPL 92.20, +0.92) and the biotech stocks, evidenced by the iShares Nasdaq Biotechnology ETF (IBB 248.49, +0.90).

In terms of today's economic reports, the Empire Manufacturing Survey for June, the Industrial Production report for May, and the NAHB Housing Market Index all exceeded the consensus estimates and overshadowed the IMF lowering its 2014 growth outlook for the US to 2.0% from 2.8%:
  • Empire Manufacturing Survey 19.3 (consensus 12.8; prior 19.0)
  • Industrial Production +0.6% (consensus +0.5%; prior -0.3%)
  • NAHB Housing Market Index 49 (consensus 46; prior 45)
Tuesday's economic calendar will feature the Housing Starts and CPI reports for May, both of which will be released at 08:30 a.m. ET.
  • S&P 500 +4.8% YTD
  • Nasdaq Composite +3.5% YTD
  • Dow Jones Industrial Average +1.2% YTD
  • Russell 2000 +0.1% YTD