FT : Melting glaciers threaten global sea levels ( full report attached)

Melting glaciers threaten global sea levels

A large part of the West Antarctic ice sheet appears to be in an “unstoppable” decline meaning global sea level rise predictions will have to be revised, scientists have found.
Glaciers in the Amundsen Sea that contain enough ice to raise sea levels by four feet (1.2 metres) are thawing faster than expected and there is nothing to stop them melting into the ocean, according to a study based on 40 years of observations by researchers from the Nasa space agency and the University of California, Irvine.

“The collapse of this sector of West Antarctica appears to be unstoppable,” said glaciologist Eric Rignot, lead author of the study. “It’s passed the point of no return.”
The fact that the retreat is happening simultaneously over a large sector suggests it was triggered by a common cause, such as an increase in the amount of ocean heat beneath the floating sections of the glaciers, he said. The changes were thought to be linked to climate change.
Some scientists have previously warned that increased concentrations of man-made greenhouse gases in the atmosphere may be affecting wind patterns around Antarctica and causing other changes that are pushing warmer waters towards the continent.
It could take several centuries for all the ice to flow into the sea, Professor Rignot said, adding that the sector would be a “major contributor to sea level rise in the decades and centuries to come”.
Projections of global sea levels, which have already risen by nearly 20cm since 1900, will have to be revised as a result of the study’s findings, he said.
The glaciers studied by the researchers flow out from land to the ocean, where their leading edges float on the seawater. The point on a glacier where it first loses contact with land is called the grounding line.
In depth

Climate change
Climate Change And Global Pollution To Be Discussed At Copenhagen Summit...GRANGEMOUTH, UNITED KINGDOM - NOVEMBER 17: Grangemouth oil refinery emits vapours near the Firth of Forth on November 17, 2009 in Longannet ,Scotland. As world leaders prepare to gather for the Copenhagen Climate Summit in December, the resolve of the industrial nations seems to be weakening with President Obama stating that it would be impossible to reach a binding deal at the summit. Climate campaigners are concerned that this disappointing announcement is a backward step ahead of the summit.
The latest news and analysis on the world’s changing climate and the political moves afoot to tackle the problem
The Antarctic glaciers have thinned so much they are floating above places where they used to sit solidly on land, meaning their grounding lines are retreating inland.
As glaciers flow faster, they stretch out and get thinner which makes them lighter and lifts them further off the bedrock. As the grounding line retreats and more of the glacier becomes waterborne, it means there is less resistance below and the flow of ice accelerates.
In order to stop or slow this process, there needs to be hills or bumps coming up from the glacier bed that can snag the ice from below, but the researchers found there are no such “pinning points” upstream from the present grounding lines in five of the six glaciers in the region.
Only the Haynes Glacier has major obstructions upstream, but it only drains a small section and is retreating as fast as the other glaciers.
The new study is to be published in the Geophysical Research Letters journal.

(BFW) KKR Eyes Spanish Lenders, May Seek Role Managing Bad Bank Assets

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

KKR Eyes Spanish Lenders, May Seek Role Managing Bad Bank Assets 2014-05-13 06:25:39.30 GMT

By Sharon Smyth and Charles Penty May 13 (Bloomberg) -- KKR, the private-equity firm run by billionaires Henry Kravis and George Roberts, is interested in investing in a Spanish lender and may seek to manage assets of the country’s bad bank. * “We would very much like to share in the capital of a financial institution and we are following the process of the restructuring of all the banks in detail,” said Jesus Olmos, the firm’s Spanish head, in an interview in Madrid; KKR would like to “be there” if opportunities arise in a second wave of consolidation among former savings banks, he said

For Related News and Information: Sareb Said to Seek Companies to Manage $68.8 Billion of Assets NSN N3PLGI6VDKHY <GO> KKR to Apollo Vie for Spain Lending Left by Banks: Euro Credit NSN MTF14B6K50XW <GO>

To contact the reporter on this story: Charles Penty in Madrid at +34-91-700-9654 or cpenty@bloomberg.net To contact the editors responsible for this story: Frank Connelly at +33-1-5365-5063 or fconnelly@bloomberg.net Steve Bailey

>>> What to look at today - 13/05/2014

US Market Closed higher, Small cap leading teh advance after last week weakness, Eight of ten sectors finished in the green with a clear bias towards cyclical groups as consumer discretionary (+1.3%), financials (+1.0%), industrials (+1.5%), materials (+1.3%), and technology (+1.5%) all posted gains of 1.0% or more, while the energy sector (+0.6%) was the only laggard among cyclical sectors...AAPL +1.28% FB +4.52%,...volumes were light @ 630mil shares...VIX @12.23 -5.34% (not far from lows 11.20(2013)) ...US After Hours : RAX +12.7%, HALO +12.0%, APRI +9.3%, FTEK -23.5%, RDEN -16.7% following earnings/guidance...DTV +6% on potential 50bil bid from AT&T...China markets are slightly more subdued after outsized gains overnight on reports of China State Council gradually relaxing FDI limits in listed companies. Economic data from China overnight were also mixed, with new Yuan loans missing estimates but M2 money supply growing above expectations, Ind. Prod. below expect...Nikkei +1.77%...HS+0.21%...Shanghai -0.40%

Macro
- China April Industrial Output Rises 8.7%; Est. 8.9%
- China Property Market Bust a Serious Threat, Magnus Writes in FT

Eur$ 1.3762 S&P Fut +0.10% European Fut +0.38%

Keep an eye on :
- AGFB BB : Agfa 1Q Adj. Ebitda EU34m vs EU41m Y/y; Reiterates Margin Goal
- AIR FP : Airbus 1Q Profit, Rev. Beat Est.; Guidance Confirmed, Says R&D Spend Rises, A350 Ramp Up Under Way
- AZN LN : Pfizer Said to Plan Raising AstraZeneca Bid Before Going Hostile {NSN N5HMF96KLVRF <go>}
- CB IM : Cucinelli 1Q Ebitda Beats Ests.
- BLT LN : BHP, Rio Offer Best Dividend Yields Among EU Miners; Gold Lags
- BMPS IM : Monte Paschi 1Q Net Loss EU174.1m vs EU101.2m Loss Y/y
- CWC GY : CEWE Confirms Targets for 2014, Dividend to Be Increased Again
- DBK GY : Deutsche Bank’s Sal. Oppenheim Plans Profit by 2015, Welt Says
- DECB BB : Deceuninck 1Q Sales Rise 3.8% to EU115m; Up 11.4% by Volume
- DTE GY : T-Mobile U.S. Growth to Continue, Telekom CEO Tells Handelsblatt
- EZJ LN : EasyJet 1H Pretax Loss GBP53m, Rev. In-Line With Est.
- EOAN GY : EON 1Q Underlying Net Income In Line, Confirms 2014 Targets, Ebitda Misses Ests.
- FGR FP : Eiffage 1Q Slightly Below Consensus on Energy, Metals: Analysts
- JEN GY : Jenoptik 1Q Pretax Unchanged; Margin Drops, Sticks to Outlook
- GLE FP : SocGen Sets Targets for Higher Profitability, Increased Revenue
- RNO FP : Nissan's Q4 results will have a positive contribution of €415M to Renault's H1 earnings --> Nissan +5.52%
- SLHN VX : Swiss Life 1Q Premium Income CHF6.9b vs CHF7b
- TIT IM : Telecom Italia 1Q Sales, Net Income Miss Estimates
- TKA GY : ThyssenKrupp 2Q Adj. Ebit Beats Estimates, Co. Raises Forecast
- WAC GY : Wacker Neuson 1Q Revenue Rises, Margins Jump, Sticks to Outlook
- MF FP : Wendel 1Q Consolidated Sales up 2.5% to EU1.35b

>>> Brokers Upgrades & Downgrades - 13/05/2014

>>> Up
*DANONE RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*PRYSMIAN RAISED TO BUY VS HOLD AT BERENBERG; PT CUT TO EU18.2
*RTL GROUP RAISED TO BUY VS HOLD AT SOCGEN
*TNT EXPRESS RAISED TO OVERWEIGHT AT JPMORGAN
*ULKER BISKUVI RAISED TO BUY VS NEUTRAL AT GOLDMAN

>>> Down
*BLINKX CUT FROM CONVICTION BUY LIST AT GOLDMAN, STILL A BUY
*DE LONGHI CUT TO NEUTRAL VS OUTPERFORM AT MEDIOBANCA
*ENAGAS CUT TO SELL VS NEUTRAL AT UBS
*KLOECKNER CUT TO SELL FROM HOLD AT BAADER BANK
*KOMERCNI BANKA CUT TO NEUTRAL AT JPMORGAN
*KORDSA CUT TO NEUTRAL VS BUY AT GOLDMAN
*NORDEA BANK CUT TO HOLD VS BUY AT KEPLER CHEUVREUX
*SABMILLER CUT TO NEUTRAL AT MACQUARIE

>>> PT Changes
*DE LONGHI PT RAISED 9% TO EU17.5 AT BOFAML; KEPT AT NEUTRAL
*LUNDIN MINING PT SET AT SEK29.4 AT MORGAN STANLEY
*Piaggio PT Raised to EU2.5 at BofAML; Kept at Underperform
*UniCredit PT Raised to EU7.8 vs EU7.2 at JPMorgan
*UniCredit PT Raised to EU6.6 at Credit Suisse; Kept at Neutral

>>> Initiation
*AUSTRIAN POST RATED NEW HOLD AT BERENBERG; PT EU36
*BABCOCK RATED NEW OUTPERFORM AT CREDIT SUISSE
*BPOST RATED NEW BUY AT BERENBERG; PT EU21
*DEUTSCHE POST RATED NEW HOLD AT BERENBERG; PT EU26
*DNO INTERNATIONAL RATED NEW HOLD AT DEUTSCHE BAN
*EDF RATED NEW OUTPERFORM AT BERNSTEIN; PT EU33.9
*ENEL GREEN POWER RATED NEW OUTPERFORM AT BERNSTEIN; PT EU2.5K, PT NOK25
*ENEL RATED NEW OUTPERFORM AT BERNSTEIN; PT EU4.9
*GAS NATURAL RATED NEW MARKET PERFORM AT BERNSTEIN; PT EU21.5
*GDF SUEZ RATED NEW OUTPERFORM AT BERNSTEIN; PT EU22.5
*GULF KEYSTONE RATED NEW BUY AT DEUTSCHE BANK, PT 145P
*IBERDROLA RATED NEW UNDERPERFORM AT BERNSTEIN; PT EU4.2
*POSTNL RATED NEW BUY AT BERENBERG; TP EU4.15
*REDEFINE RATED NEW UNDERWEIGHT AT MORGAN STANLEY, PT 890 RAND
*ROYAL MAIL RATED NEW BUY AT BERENBERG; PT 700P
*SNAM RATED NEW MARKET PERFORM AT BERNSTEIN; PT EU4.1
*TNT RATED NEW SELL AT BERENBERG; PT EU5.7


>>> Call
>> Sector
*EUROPEAN BANKS RAISED TO NEUTRAL VS UNDERPERFORM AT MEDIOBANCA

FT : This time China’s property bubble really could burst

This time China’s property bubble really could burst

Beijing’s reluctance to enact stimulus programmes is unlikely to hold, says George Magnus
Chinese property is the most important sector in the global economy. It has been pivotal in the country’s economic development, provided lucrative business for industrial commodity producers from Perth to Peru, and been the backbone of the surge in world exports to China. In the past few years, predictions that the sector was about to implode at any moment have not been borne out – but now is the time for the world to pay attention. Property activity indicators have been trending lower since mid-2013, and the downturn in the sector now threatens to turn into a bust. At best, China is entering a deflationary phase at a time of global fragility.
The default risks in the weakly regulated shadow banking sector – and the rapid rise in local government debt – are real, and property-related. Yet the government and the central bank have tools to limit the short-term consequences; they have already deployed debt rollovers, bank bailouts and recapitalisations.

The greater risk to China lies in the pervasive consequences of any property bust. Property investment has grown to account for about 13 per cent of gross domestic product, roughly double the US share at the height of the bubble in 2007. Add related sectors, such as steel, cement and other construction materials, and the figure is closer to 16 per cent. The broadly defined property sector accounts for about a third of fixed-asset investment, which Beijing is supposed to be subordinating to the target of economic rebalancing in favour of household consumption. It accounts for about a fifth of commercial bank loans but is used as collateral in at least two-fifths of total lending. The booming property market, moreover, has produced bounteous revenues from land sales, which fuel much local and provincial government infrastructure spending.
The reason things look different today is the realisation of chronic oversupply. As the property slowdown has kicked in, housing starts, completions and sales have turned markedly lower, especially outside the principal cities. Inventories of unsold homes in Beijing are reported to have risen from seven to 12 months’ supply in the year to April. But when it comes to homes under construction and total sales, the bulk is in “tier two” cities, where the overhang of unsold homes has risen to about 15 months; and in tier three and four cities, where it is about 24 months.
The anti-corruption crackdown, often targeting individuals who have built up ostentatious property wealth, has poured cold water over the market, in which, according to a recent investment bank report, the richest 1 per cent of households is estimated to own about a third of residential property. Elsewhere, the tightening of credit terms, including funding costs for property developers, especially in the shadow banking sector, is taking its toll. Rates of return on commercial property and infrastructure, and cash flows for developers and local government, have been deteriorating.
The crunch in the property market, and for the economy, will come when land and property prices fall more broadly across the country. Official data still show that property prices in 70 cities were 8 per cent higher in March than a year ago – but prices have actually fallen since the end of 2013.
If activity levels and prices weaken further, Beijing’s resolve not to respond with traditional stimulus programmes is unlikely to hold. We should expect a potpourri that might include: extra spending on infrastructure and environment programmes; faster urbanisation in inland and western provinces; some relaxation on restraints on homebuying, such as mortgage deposits; and, ultimately, new monetary easing.
Such steps may provide financial markets and the economy with some short-term relief. But if Beijing goes too far it will undermine the essential strategy of rebalancing the economy, in which case the negative economic impact would be larger and last longer. China is different from the west in many ways but the real economic effects of a burst property bubble are the same the world over. Beijing will have to cope with them in the next two years but the rest of us should be prepared for the deflationary consequences in a still fractious global recovery phase

FT : Sky Deutschland shareholder attacks BSkyB approach

Sky Deutschland shareholder attacks BSkyB approach

One of the UK’s best known hedge fund managers has launched a broadside against BSkyB’s attempt to create a united European pay-TV operator, arguing the proposal “massively undervalues” Sky Deutschland, its German sister company.

Crispin Odey, who with an 8 per cent stake in Sky Deutschland is the company’s largest minority shareholder, said he would resist any attempt by BSkyB to push through a “nil-premium takeover” after the UK pay-TV operator confirmed it was in talks with 21st Century Fox, the largest shareholder in BSkyB, Sky Deutschland and Sky Italia.

“While it makes quite a lot of sense for BSkyB to own Sky Deutschland, because a lot of its technology and knowhow has come straight from Sky, a nil-premium merger that massively undervalues the company does not make sense for minority shareholders,” Mr Odey said.
“We are minded to fight, and other shareholders in Sky Deutschland should be involved in the debate over how this company is going to grow.”
Shares in Sky Deutschland surged 9.5 per cent on Monday after BSkyB confirmed the discussions with 21st Century Fox, valuing Mr Odey’s 8 per cent holding in the German company at about €440m. Shares in BSkyB fell 2.4 per cent.
Mr Odey, a former son-in-law of Rupert Murdoch, was an outspoken critic of the 21st Century Fox chairman’s failed attempt to buy out minority investors in BSkyB 2011, arguing the offer undervalued the company before the deal was derailed by the UK phone hacking scandal.
Under the plan to merge the companies’ European assets, BSkyB would acquire Fox’s stake in Sky Deutschland, which is 57 per cent of its total shares on a fully diluted basis, and would then be required to make a takeover offer for the minority shares.
“BSkyB would expect, subject to German minimum offer price rules, to make this offer without a premium,” the company said.
In a statement on Monday, Fox said: “Over the years we’ve had numerous internal discussions regarding the organisational and ownership structure of the European Sky-branded satellite platforms. From time to time these conversations have included BSkyB, however no agreement between the parties has ever been reached.”
Fox owns 39.1 per cent of BSkyB, about 57 per cent of Sky Deutschland and all of Sky Italia.
Lex on BSkyB

Lex
BSkyB’s plan to buy its European namesakes would leave it with a huge amount of debt
Continue reading
Together the three European operators have about 19m television subscribers. Although they already collaborate on set-top box technology and other points, greater integration could allow them to bid for sports and entertainment rights. The talks come as BSkyB faces narrower growth opportunities in the UK, because of market penetration and competition from BT.
Analysts have raised questions about possible conflict of interests, because 21st Century Fox is also the biggest shareholder in BSkyB.
“[The potential deal] raises the question if there’s a fundamental conflict of interests of investors in Sky Deutschland and BSkyB and the interests of Fox,” said Claudio Aspesi, an analyst at Bernstein.
Mr Murdoch has previously frustrated fellow shareholders with his bid for the remainder of BSkyB in 2011, and his promotion of his sons to key executive positions, with some raising concerns over governance at the company.
One of BSkyB’s top 20 shareholders said: “This looks like a tidying up exercise on a grand scale. It is not clear if it is going to broaden the shareholder base, or if it is going to complicate issues over governance at BSkyB”.

FT : AT&T closing in on near-$50bn DirecTV bid

AT&T closing in on near-$50bn DirecTV bid

AT&T is in advanced discussions with DirecTV, the largest US satellite-television provider, over a deal worth almost $50bn that would further shake up the country’s fast-changing pay-TV market.
The two companies have been in on-off discussions for some time, but talks have progressed recently, according to people familiar with the matter, who said a deal was still weeks away.

DirecTV has a market value of $44.5bn but AT&T is discussing a cash and stock bid of between $92 and $95 per share, these people said, implying a value of slightly below $50bn, one of the people said. The structure of the combined company’s management is still under discussion.
A deal is not certain, however. The parties have previously come close to agreeing terms, only for negotiations to break down. Any deal could also face a prolonged battle to convince regulators to allow further consolidation in pay-TV.
The discussions come at a time of acute change in America’s communications market, with Comcast, the country’s largest cable company, in the process of seeking regulatory approval for its $42bn agreed bid for Time Warner Cable, its closest cable rival.
Sprint, the US mobile group controlled by Japan’s SoftBank, has been considering a bid for T-Mobile US, its smaller rival which is controlled by Deutsche Telekom. That bid would also challenge regulators, who are wary of letting a market with four big companies consolidate down to three.
A DirecTV bid would further cool speculation of a bid by AT&T for Vodafone of the UK. Randall Stephenson, AT&T’s chief executive, cautioned in March that “the window may be closing on perhaps owning wireless assets” in Europe.
Acquiring DirecTV would not only give AT&T the second-largest domestic pay-TV business after Comcast, adding 6m AT&T video customers to DirecTV’s base of 20m. Analysts point out that it would also enable AT&T to move video content from its U-verse network on to DirecTV’s satellites, and ratchet up broadband speeds for its customers.
“AT&T’s broadband/wireless assets help address the inability for satellite firms to deliver broadband connectivity, which seems to be increasingly becoming a competitive issue,” said Kannan Venkateshwar of Barclays.
AT&T’s broadband/wireless assets help address the inability for satellite firms to deliver broadband connectivity, which seems to be increasingly becoming a competitive issue
- Kannan Venkateshwar, Barclays
Some analysts had expected AT&T to have shown more interest in acquiring Dish, DirecTV’s US satellite rival, particularly since the Colorado-based company has built up a sizeable wireless spectrum portfolio.
Charlie Ergen, the Dish chairman who has also been seen as a merger candidate for DirecTV, has expressed interest in entering the mobile phone business.
Commenting last week during a call with analysts to discuss Dish’s first-quarter results, Mr Ergen said an AT&T-DirecTV deal made financial sense, if not strategic sense. From a financial standpoint, “they (AT&T) would be crazy not to look at it,” he said.
“We don’t have the kind of money to go outbid Sprint for T-Mobile or outbid AT&T for DirecTV. And so . . . we have to be well positioned,” Mr Ergen said. “Washington will make rules and regulations and merger approvals . . . and they’ll pick winners and losers. And the good news is that the administration and the FCC [Federal Communications Commission] have talked a lot about competition and being in favour of competition.”
DirecTV shares rose 6 per cent to $92.50 in extended trading on Monday. DirecTV and AT&T both declined to comment.
News of AT&T’s renewed interest was reported earlier on Monday by the Wall Street Journal and Bloomberg.

(BN) Pfizer Said to Plan Raising AstraZeneca Bid for Second Time (1)

Pfizer Said to Plan Raising AstraZeneca Bid for Second Time (1)
2014-05-13 00:52:21.616 GMT


     (Updates with tax benefit in seventh paragraph.)

By David Welch, Albertina Torsoli and Manuel Baigorri
     May 13 (Bloomberg) -- Pfizer Inc. is planning to sweeten
its bid for U.K. rival AstraZeneca Plc for a second time, people
with knowledge of the matter said.
     Pfizer and its advisers are crafting a new offer that would
increase the value modestly above the current 50 pounds-a-share
(about $84) level while bumping the cash portion, said two of
the people, who asked not to be identified discussing private
information. Pfizer will probably wait until after U.K.
government hearings to raise its bid, they said.
     Pfizer is putting together a sweetened offer before it
considers whether to make a hostile takeover attempt by bringing
its proposal directly to AstraZeneca’s shareholders, the people
said. Pfizer would prefer a friendly deal since its unsolicited
overture already has attracted political scrutiny in the U.S.
and U.K. AstraZeneca rejected Pfizer’s second proposal on May 2,
valued at 62.6 billion pounds ($106 billion) and made up of 32
percent cash and the rest in stock.
     Ian Read, Pfizer’s chief executive officer, and Pascal
Soriot, his counterpart at AstraZeneca, will testify at two
separate parliamentary committees this week, as the U.K.
government seeks guarantees that Pfizer will preserve jobs and
medical research in Britain.
     Pfizer is concerned it’s beginning to lose momentum on the
deal, said two of the people, and will be talking further to
investors and listening to what comes out of the hearings as it
evaluates its next steps.
     Representatives for Pfizer and AstraZeneca declined to
comment.

                            Tax Rates

     Pfizer has said it would move its legal residence to the
U.K., gaining a lower tax rate, while the company’s operational
headquarters would remain in New York. In doing so, Pfizer would
join more than a dozen other companies that have said they are
making or considering such transactions since 2012.
     Read has said the tax benefits, the chance to avoid U.S.
taxes on $70 billion in cash built up overseas and AstraZeneca’s
promising cancer medicines are among the reasons Pfizer is
pursuing the deal.
     The tax issue has sparked criticism from U.S. lawmakers,
including Senator Ron Wyden, an Oregon Democrat and chairman of
the Senate Finance Committee that oversees tax legislation.
Wyden said he may take up a proposal that would make it harder
for U.S. companies to shift their legal addresses to avoid
taxes.

                           Cancer Drug

     A deal with AstraZeneca would help Pfizer add early-stage
drugs that use the body’s own immune cells to recognize and
attack tumors. Atop the list is MEDI4736, AstraZeneca’s immuno-
oncology drug expected to compete with experimental therapies
from drugmakers including Bristol-Myers Squibb Co., Merck & Co.
and Roche Holding AG.
     British lawmakers earlier this month mobilized against
Pfizer’s attempt, demanding Business Secretary Vince Cable
secure assurances on jobs and research investment. Part of
Pfizer’s pitch to British officials is that AstraZeneca is a
global company and has substantial operations and people outside
the country, said one of the people.
     About 40 percent of AstraZeneca’s revenue in 2013 came from
North America, and more than 30 percent from outside of Europe,
data compiled by Bloomberg show.
     AstraZeneca Chairman Leif Johansson said the drugmaker will
return to growth as an independent company and listed the
reasons for rejecting the Pfizer offer in a video this month.
Among them: The bid “significantly undervalued” the company,
he said.

                         Job Assurances

     Pfizer has pledged to keep at least one-fifth of the
combined companies’ research and development workers and
substantial manufacturing plants in the U.K. for at least five
years after a deal.
     In the U.S., the governors of Maryland and Delaware have
asked for similar assurances, raising concerns that Pfizer would
reduce about 5,700 AstraZeneca jobs in their states as part of a
cost-cutting effort after the acquisition. Read wrote the
governor’s yesterday saying it was too soon in the effort to
gain AstraZeneca to discuss potential effects on jobs.
     An acquisition of AstraZeneca would add to the $127 billion
of mergers among pharmaceutical companies this year, according
to data compiled by Bloomberg. An industrywide recalibration
that has been building since 2011 reached a peak last month with
a flurry of activity by GlaxoSmithKline Plc, Novartis AG and
Valeant Pharmaceuticals International Inc.

For Related News and Information:
AstraZeneca Pipeline Is Lottery Ticket in Pfizer’s Pursuit
NSN N5GYUY6S972K <GO>
Pfizer-AstraZeneca Deal May Harm Search for New Medicines
NSN N4Y3MD6JTSEL <GO>
Pfizer’s Bid May Have Been Invited by U.K.’s Tax Policy
NSN N4R75Q6KLVS1 <GO>
Top health stories:TOP HEA <GO>
Bloomberg Industries Research: BI PHRM <GO>

--With assistance from Naomi Kresge in Berlin, Drew Armstrong in
New York and Michelle Fay Cortez in Minneapolis. 

To contact the reporters on this story:
David Welch in New York at +1-212-617-2788 or
dwelch12@bloomberg.net;
Albertina Torsoli in Geneva at +41-22-317-9202 or
atorsoli@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman, Andrew Pollack

>>> US After. Hours

After Hours Summary: RAX +12.7%, HALO +12.0%, APRI +9.3%, FTEK -23.5%, RDEN -16.7% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: RAX +12.7%, HALO +12.0%, APRI +9.3%, TC +7.1%, OSIR +5.6%, HMIN +5.6%, MBI +4.1%, PTLA +3.6%, PVA +2.8%, MCK +2.7%, DTSI +2%, NOAH +1.9%, HEAR +1.3%, EVDY +1.2%, BWC +0.2%, PCYG +0.1%, TWOU +0.1%

Companies trading higher in after hours in reaction to news: HALO +12.0% (Data Monitoring Committee for Study 202 of PEGPH20 now supports continued enrollment of patients; co also reported earnings), APRI +9.3% (received FDA clearance to begin clinical trial of RayVa for secondary Raynaud's phenomenon; co also reported earnings), DTV +6.1% (Bloomberg reporting that co and AT&T (T) are in talks of a deal for DTV to be acquired for ~$100 per share), ANR +1.3% (announced offering of $400 mln senior secured second lien notes), XOXO +1.1% (Becker Drapkin confirmed 7.2% stake in 13D filing; intends to engage company and may nominate or recommend candidates for the Board)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: FTEK -23.5%, RDEN -16.7%, OESX -13.1%, KIN -8.9%, CALL -6.5%, CWCO -5.9%, DARA -3.7%, ARNA -3.2%, VGR -3.2%, RICK -2.2%, HASI -1.9%, RMTI -1.4%, ONTX -1.3%, APP -1.3%, LMNS -1.3%, DQ -0.7%, TCRD -0.5%, FENG -0.4%

Companies trading lower in after hours in reaction to news: BIOF (received a letter from the Listing Qualifications Staff; continued listing of its securities is no longer warranted), FNHC -4.7% (filed for $50 mln mixed securities shelf offering), OKS -3.9% (announced public offering of 11 mln of common units), IDRA -3.5% (filed for $200 mln mixed securities shelf offering), NRF -2.2% (announced public offering of 30 mln shares of common stock), AR -1.5% (announced secondary public offering of 10 mln shares common stock by Antero Resources Investment), DQ -0.7% (announced proposed follow-on public offering of 2 mln ADSs)

>>> Asian Update

Asian Market Update: Australia property sector growth slows; China weakens CNY further despite the visit from Lew

***Economic Data*** - (AU) AUSTRALIA Q1 HOUSE PRICE INDEX Q/Q: 1.7% (1-year low) V 3.0%E; Y/Y: 10.9% V 10.4%E - (AU) AUSTRALIA MAR HOME LOANS M/M: -0.9% V +1.0%E; INVESTMENT LENDING: -0.8% V +4.4% PRIOR; OWNER-OCCUPIED LOAN VALUE: -1.2% V +1.8% PRIOR - (NZ) NEW ZEALAND APR FOOD PRICES M/M: +0.6% V -0.3% PRIOR (1st rise in 3 months) - (NZ) NEW ZEALAND APR ANZ TRUCKOMETER HEAVY M/M: +0.5% V -1.0% PRIOR - (JP) JAPAN APR MONEY STOCK M2 Y/Y: 3.4% V 3.4%E (one-year low); M3 Y/Y: 2.8% V 2.8%E - (UK) UK APR BRC SALES LFL Y/Y: 4.2% V 1.6%E (1st rise in three months; 3-year high)

Market Snapshot (as of 03:30 GMT): - Nikkei225 +1.7%, S&P/ASX +0.7%, Kospi +0.9%, Shanghai Composite flat, Hang Seng +0.2%, Jun S&P500 +0.1% at 1,894, Jun gold -0.2% at $1,293, Jun crude oil -0.1% at $100.54/brl

***Highlights/Observations/Insights*** - China markets are slightly more subdued after outsized gains overnight on reports of China State Council gradually relaxing FDI limits in listed companies. Economic data from China overnight were also mixed, with new Yuan loans missing estimates but M2 money supply growing above expectations. Investors await the release of the rest of April metrics - retail sales, industrial production, and FDI - later in today's session. In notable Chinese press, CSRC announced and additional 6 applicants for IPO, bringing the total pre-IPO disclosure filings to 319 since Apr 19th. On the currency front, PBoC once again set its Yuan midpoint at an 8-month low despite the impending visit from US Treasury Sec Lew, who is under increasing domestic pressure to take a more hard-line position on China's currency policy.

- Slowing growth in property prices in Australia may continue to soothe RBA worries of overheating in the sector, with Q1 house price index slowing to a 1-year low. Mortgage lending also turned negative on the month for the first time in 3 months. JPMorgan economist noted there has been a "deceleration from the euphoria that we saw in the second half of last year" and the economy is undergoing a "slower pace of demand filter through to house prices." Also note that Australia will unveil its annual budget - one of the toughest in govt's recent history - later in today's session.

- In M&A, shares of DTV were sharply higher afterhours after a press report suggested the company is in talks with AT&T over a $100/shr ($50B) deal. Separately, Pfizer was said to be looking to sweeten the cash component of its takeover bid for AstraZaneca and may present its new offer after UK parliamentary hearings. If rejected, Pfizer would reportedly consider a hostile takeover.

- Shares of Rusal are up nearly 3% in Hong Kong despite reporting a Q1 loss of $169M v profit $49M y/y. Rev also fell to $2.12B v $2.68B y/y, but the company forecasted a 6% rise in global aluminum demand in 2014 to 55Mt.

***Fixed Income/Commodities/Currencies*** - (JP) Japan MoF sells ¥545.9B in 1.7% (1.7% prior) 30-yr notes; Avg yield: 1.708% v 1.696% prior; Bid to cover: 4.62x v 2.93x prior - (CN) PBoC to drain CNY97B in 28-day repos (24th consecutive drain) - GLD: SPDR Gold Trust ETF daily holdings fall 2.4 tonnes to 780.5 tonnes (lowest since Jan 2009) - USD/CNY: (CN) PBoC sets yuan mid point at 6.1636 v 6.1625 prior setting (weakest since Sept 9th 2013)

***Equities*** US markets: - RAX: Reports Q1 $0.18 v $0.12e, R$421M v $420Me; +13.3% afterhours - DTV: Reportedly deal with AT&T being discussed is around $100/shr which would vale the deal at $50B - financial press; +5.9% afterhours - MBI: Reports Q1 $1.32 v $0.84 y/y, R$577M v $219M y/y; +3.9% afterhours - CVG: Reports Q1 $0.32 v $0.29e, R$606M v $548Me; Raises quarterly dividend 17% to $0.07 from $0.06; +3.5% afterhours - MCK: Reports Q4 $2.55 v $2.38e, R$38.1B v $35.2Be; +3.3% afterhours - AZN: Pfizer said to be raising cash part of bid; may consider going hostile if offer fails - financial press; +1.4% afterhours - TELK: MabVax Therapeutics and Telik Sign Definitive Merger Agreement; -4.6% afterhours - RDEN: Reports Q3 -$0.84 v $0.02e, R$210.8M v $256Me; Hires Goldman to advise on strategic alternatives; -16.7% afterhours

Notable movers by sector: - Financials: Ping An Insurance 2318.HK +1.0% (launches online financial product); Greentown China 3900.HK +2.3% (Apr sales results); Poly Property 119.HK +2.5% (Apr sales results) - Energy: Sinopec Shandong Taishan Petroleum 000554.CN +10.0%, Sinopec Shanghai Petrochemical 600688.CN +6.0% (PetroChina to sell Eastern Pipeline Co to public) - Industrials: Orica ORI.AU -5.4% (H1 results); China Resource Cement 1313.HK +2.7% (Q1 results); Shenzhen Auto Electric Power Plant 002227.CN +1.4%, BYD Corp 002594.CN +1.8% (China started construction of EV charging centers); Nissan Motor 7201.JP +4.5% (FY13/14 results); Isuzu Motors 7202.JP +5.7% (FY13/14 results); Mitsubishi Chemical Holdings 4188.JP +3.2% (plans to acquire Taiyo Nippon Sanso) - Technology: Square Enix Holdings 9684.JP +9.7% (analyst action); Sharp 6753.JP +5.4% (FY13/14 results)