>>> Safran : Electric Green Taxiing System could save millions to Airlines


{http://bit.ly/1iL1tAq} see video here

Mexican airline Interjet has signed a Memorandum of Understanding with Honeywell and Safran, developers of the Electric Green Taxiing System (EGTS), to become the first airline in the Americas to use the system which will save airlines up to $450,000 per plane, per year once it comes to market.

EGTS uses electricity provided by the plane's Auxiliary Power Unit (APU) and to motors on the plane's main wheels to allow the plane to taxi without the use of its main engines — much like how a hybrid car uses only its battery at slower speeds. The motors allow the plane to be controlled both forward and reverse, meaning a pushback tug would not be required for the plane to depart from the gate. In addiiton, less moving vehicles in the gate area creates a safer environment for ground crews.

>>> Brokers Upgrades & Downgrades

>>> Up
*BANG & OLUFSEN RAISED TO SELL VS STRONG SELL AT NORDEA
*CONTINENTAL RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*KONE RAISED TO HOLD VS SELL AT NORDEA
*VOSSLOH RAISED TO BUY VS HOLD AT BERENBERG

>>> Down
*ABU DHABI COMMERCIAL BANK CUT TO NEUTRAL VS BUY AT GOLDMAN
*AUTONEUM CUT TO HOLD VS BUY AT KEPLER CHEUVREUX
*CLARIANT CUT TO HOLD VS BUY AT BERENBERG
*MILLICOM CUT TO SELL VS HOLD AT BERENBERG
*NATIONAL BANK OF KUWAIT RAISED TO BUY VS NEUTRAL AT GOLDMAN
*RALLYE CUT TO MARKET PERFORM VS STRONG PERFORM AT RAYMOND JAMES
*STMICROELECTRONICS CUT TO SELL VS NEUTRAL AT UBS
*TOMTOM CUT TO SELL VS NEUTRAL AT UBS
*TRANSMODE CUT TO SELL VS NEUTRAL AT UBS

>>> PT Change
*SocGen PT Raised to EU51 vs EU46.7 at Mediobanca

>>> Initiation
*A2A RESUMED AT NEUTRAL AT MEDIOBANCA; PT EU0.87
*EVRAZ RATED NEW HOLD AT JEFFERIES

>>> Call
>> Stock
*AFREN ADDED TO MOST PREFERRED OILS AT BOFAML
*AKER SOLUTIONS ADDED TO BOFAML’S LEAST PREFERRED LIST
*ASHMORE REMOVED FROM UBS’S MOST PREFERRED LIST
*GENEL REMOVED FROM MOST PREFERRED OILS AT BOFAML
*PUBLICIS REMOVED FROM ANALYST FOCUS LIST AT JPMORGAN
*SAIPEM REMOVED FROM LEAST PREFERRED OILS AT BOFAML
*SCHRODERS REMOVED FROM UBS’S LEAST PREFERRED LIST

>>> What to look at today & this week end

UKraine Situation put pressure on markets, - Euro slid about 40pips against the greenback at the open following hints from ECB officials that more easing may be required over the weekend. ECB Pres Draghi warned the central bank would be more likely to act if the euro continued to strengthen, as that would be even more disinflationary. Draghi said the ECB sees no broad based evidence of inflation but must not become complacent. Separately, ECB's Coeure noted that asset purchases may be an appropriate tool to fight low inflation, adding that further monetary easing is not excluded, but remains contingent on outcomes....- In China, another press report suggested the govt may be looking to undo some
of its property sector curbs. China's Fujian Province was said to be discussing easing home purchasing curbs, including easier mortgage rules on second home purchases. Separately, comments from vice fin min Zhu Guangyao acknowledged the govt is faced with challenges in managing economic slowdown, but also said the outside world appears to be more concerned with the process than the state council. Over the weekend, FT reports reflected on the first failed bond auction in China in a year, as investors demanded higher interest rates to buy govt debt...Nikkei-0.10% Hang Seng-0.02%
Shanghai -0.30%

Eur$ 1.3845 S&P Fut -0.20% European fut -0.43%

Macro
- ECB's Coeure: Asset purchases may be an appropriate tool to fight low inflation
- ECB's Draghi: additional strengthening of the euro could prompt additional ECB easing
- IMF Has Negative Bias on Growth in EM, Brazil’s Mantega Says
- Federal Reserve Should Continue Tapering of Purchases, IMFC Says {http://bit.ly/1gluwKi}
- Visco Says ECB Studying Various QE Combinations to Use If Needed
- Fed's Kocherlakota : Lower tax rate on business investment could help boost US economic activity, Lowering tax rate on R&D, equipment and structures would also have stimulative effect.
- Noyer Says ECB Ready to Use All Instruments If Necessary {NSN N3XR7P6VDKHS <go>}
- Portugal FinMin Open to Unconventional Monetary Easing: FT
- Iran nuclear chief Salehi: 30K new centrifuges are needed to meet domestic fuel demands
- Mexico Central Bank Gov Carstens: Remainder of 2014 to show a robust recovery after a weak Q1

Keep an eye on :
- ALV GY : Allianz to Buy More Shares as Rates Stay Low, Tagesspiegel Says
- AZA IM : Etihad to Take Holding of Up to 49% in Alitalia: Repubblica
- EN FP : Bouygues Plans to Offer Aggressive Internet Offer, declines to comment on rumors regarding discussion with Iliad or/and Telefonicas: Figaro {NSN N3WSG16S972X <go>}
- CNA LN : Centrica Searches for New CEO as Part of Broader Review, FT Says
- OLE SM : Citi Declined Deoleo Bid Work Amid Spain Government Concern: WSJ
- DUFN VX : Dufry Unlikely to Pay Dividends, CEO Tells Schweiz am Sonntag
- ENI IM : Italy May Nominate Descalzi as New Eni CEO, Repubblica Reports
- FNC IM : Finmeccanica Bribery Case Said to Be Resolved: Reuters Link
- GIVN VX : Givaudan +ve article in the WSJ, even if expensive still some potential
- GLEN LN : Glencore to Sell Its Stake in Las Bambas Copper Mine for $5.85b
- HEIA NA : Heineken Weighing Sale of ~100 U.K. Pubs, Sunday Times Reports
- IPN FP : Ipsen Announces a first set of results on positive phase III clinical study of Dysport® in the treatment of adults suffering from Upper Limb Spasticity
- KNIN VX : Kuehne & Nagel 1Q Sales Miss Estimates
- LG FP : Private Equity firms are targeting assets of Lafarge & hocim
- MHG NO : Marine Harvest 1Q Harvest 92,000 Tons Vs 80,000-Ton Guidance
- MRW LN : Morrison Investors Question Strategy After Profit Forecast: FT
- MNOD LI : Norilsk Nickel Approves Possible Early Eurobonds Buyback: IFX
- NESN VX : Nestle Says Chairman Brabeck Diagnosed With Curable Illness
- UG FP : Peugeot Targets 2% Operating Margin in Automotive Unit by 2018, CEO Plans to Reduce Number of Models, France Info Says
- RCO FP : Remy Cointreau Extends Maturity on $255m Facility to April 2019
- RCS IM : RCS sees shares rise on rumours of new shareholders
- SPM IM : Eni Proposes Carbonetti as Saipem Chairman Before May 6 AGM
- STAN LN : Orix Said to Weigh Bid for StanChart’s HK Consumer Credit Unit
- SY1 GY : Symrise Offers to Buy All Shares of Diana Group {NSN N3XM3F6VDKHT <go>}
- GLE FP : Societe Generale buys 7% in Rosbank from Interros, raises stake to 99.4%
- SW FP : Sodexo Pares Health Insurance Holders With Hours Change: WSJ
- TKA GY : Saab/ThyssenKrupp in Talks About Thyssen’s Swedish Marine Ops.
- TSCO LN : Tesco to Make Further Price Cuts, Sunday Express Reports
- FP FP : Total Will Push Ahead With Kaombo Project in Angola, CEO Says
- UBSN VX : UBS to pay half of profit to shareholder - FT
- VIE FP : Vinci Plans to Name Pierre Coppey as Deputy CEO: Les Echos
- VIV FP : Vivendi Says Process for Choosing SFR Buyer Was Transparent
- VOS GY : Vossloh Transport Sale May Lead to 30% Upside, Berenberg Says

>>> Asian Update

Asian Market Update: Stocks fall as emergency session of UN Security Council fails to resolve Ukraine tensions

***Economic Data*** - (NZ) NEW ZEALAND MAR PERFORMANCE SERVICES INDEX: 58.3 V 52.8 PRIOR (6-year high) - (SG) SINGAPORE Q1 ADVANCED GDP Q/Q: 0.1% V 0.4%E; Y/Y: 5.1% V 5.4%E - (AU) AUSTRALIA FEB CREDIT CARD PURCHASES: A$21.4B V A$21.4B PRIOR; CREDIT CARD BALANCES: A$50.2B V A$49.1B PRIOR - (UK) UK APR RIGHTMOVE HOUSE PRICES M/M: 2.6% V 1.6% PRIOR; Y/Y: 7.3% (highest since Oct 2007) V 6.8% PRIOR

Market Snapshot (as of 03:30 GMT): - Nikkei225 -0.1%, S&P/ASX -1.0%, Kospi +0.1%, Shanghai Composite -0.4%, Hang Seng +0.1%, Jun S&P500 -0.2% at 1,808, Jun gold +0.6% at $1,327, May crude oil +0.6% at $104.31/brl

***Highlights/Observations/Insights*** - Spread of violence to more towns in east Ukraine, including reports of a skirmish between local law enforcement and pro-Russian separatist forces that led to 1 death and 9 wounded in Slavyansk, has further magnified tensions in financial markets. Earlier this weekend, Ukraine Acting Pres Turchynov announced the govt will launch full-scale "anti-terrorist operations" in eastern Ukraine involving armed forces on Monday amid pervasive speculation that Russian agents are becoming more actively involved in local provocation. Subsequently, Russian Foreign Ministry called the order "criminal", requesting an emergency meeting of the UN Security Council Sunday evening. Representatives from Ukrainian and Russian sides traded terse accusations at the meeting producing no progress in the standoff, although both sides acknowledged it is high time to deescalate, with Turchynov's 06:00GMT deadline drawing closer.

- Euro slid about 40pips against the greenback at the open following hints from ECB officials that more easing may be required over the weekend. ECB Pres Draghi warned the central bank would be more likely to act if the euro continued to strengthen, as that would be even more disinflationary. Draghi said the ECB sees no broad based evidence of inflation but must not become complacent. Separately, ECB's Coeure noted that asset purchases may be an appropriate tool to fight low inflation, adding that further monetary easing is not excluded, but remains contingent on outcomes.

- In China, another press report suggested the govt may be looking to undo some of its property sector curbs. China's Fujian Province was said to be discussing easing home purchasing curbs, including easier mortgage rules on second home purchases. Separately, comments from vice fin min Zhu Guangyao acknowledged the govt is faced with challenges in managing economic slowdown, but also said the outside world appears to be more concerned with the process than the state council. Over the weekend, FT reports reflected on the first failed bond auction in China in a year, as investors demanded higher interest rates to buy govt debt.

- In economic data, Singapore Q1 GDP disappointed expectations and the Singapore Central Bank (MAS) subsequently lowered its FY14 CPI all items inflation outlook to 1.5-2.5% from 2.0-3.0%. Singapore dollar sold off about 40pips on the report, with USD/SGD rising above the S$1.25 handle.

***Fixed Income/Commodities/Currencies*** - (JP) BOJ offers to buy ¥110 in JGB with maturity less than 1-yr, ¥170B in JGB with maturity over 10-yr as well as ¥1.5T in T-bills - (KR) South Korea sells KRW2.06T in 5-yr government bonds at 3.160% v 3.195 in Feb, bid to cover: 3.8X - GLD: SPDR Gold Trust ETF daily holdings fall 1.8 tonnes to 804.4 tonnes (lowest since 803.7 on Mar 6th)

- In other USD majors, AUD/USD and NZD/USD ranged in 20pip ranges around $0.9390 and $0.8680. USD/JPY fell about 20pips from Friday close to about 101.40 before coming off the lows, while Chinese yuan weakened slightly above CNY6.21. Precious metals were also notably firmer amid escalating tensions in Ukraine - Gold rose over $10 above $1,328 and silver was up nearly 1% at its highs above $20.10/oz.

***Equities*** US markets: - HLF: Responds to media reports, have not knowledge of any formal or informal DoJ investigation; CNBC: Law enforcement sources indicate that at this time, there is no evidence of criminal activity; investigation is ongoing - TSL: Cuts Q1 module shipments guidance to 540-570 MW from 670-700 MW prior, adjusts gross margin outlook to 18-20% from prior mid-teens percentage

Notable movers by sector: - Consumer Discretionary: Chongqing Changan Automobile 000625.CN +10.0% (prelim FY13 results); Daphne International Holdings 210.HK +0.9% (Q1 operating results); Coca-Cola Amatil CCL.AU -7.0% (analyst action) - Financials: Sinolink Securities 600109.CN +1.7% (Q1 results); C C Land Holdings 1224.HK +0.6% (FY13 results) - Materials: China West Construction Group 002302.CN +3.5% (FY14 guidance); China Minmetals Resources 1208.HK +7.1% (acquires Las Bambas copper mine from Glencore) - Industrials: Shuangliang Eco-Energy 600481.CN +1.8% (Q1 guidance); Great Wall Motor 2333.HK +2.0% (to launch Haval H8) - Technology: Shenzhen ZQGame 300052.CN +10.0% (acquisitions); Tencent Holdings 700.HK +1.1% (to launch advertising platform on WeChat); Sharp 6753.JP -8.4% (plans public share offering)

>>> China Vice Fin Min Zhu Guangyao: Faced with challenges on economic slowdown;

hina Vice Fin Min Zhu Guangyao: Faced with challenges on economic slowdown; Outside world is more concerned with it than China govt - financial press

- Says: "We must pay close attention to the balance between moral hazard when we take action to make this risk abate, and at the same time we must avoid causing financial systematic turbulence." 
- Believes local govts had sufficient assets to avoid default, but can no longer be allowed to keep borrowing through affiliated financing vehicles. 
- China must reduce dire environmental pollution through channeling investment into green industries and improved environmental standards. 
- Recent decline in CNY was part of an effort to liberalize China's capital markets and let the market determine the currency's value.

>>> What to look at this Week End

Market Weekly: Dow-2,35% S&P -2,65% Nasdaq-3,10% Brazil +1,54% Nikkei-7,33% Hang Seng +2,19% Shanghai +4,25% VIX +22%.

Eur$ 1.3885

Macro
- ECB's Coeure: Asset purchases may be an appropriate tool to fight low inflation
- ECB's Draghi: additional strengthening of the euro could prompt additional ECB easing
- IMF Has Negative Bias on Growth in EM, Brazil’s Mantega Says
- Federal Reserve Should Continue Tapering of Purchases, IMFC Says {http://bit.ly/1gluwKi}
- Visco Says ECB Studying Various QE Combinations to Use If Needed
- Fed's Kocherlakota : Lower tax rate on business investment could help boost US economic activity, Lowering tax rate on R&D, equipment and structures would also have stimulative effect.
- Noyer Says ECB Ready to Use All Instruments If Necessary {NSN N3XR7P6VDKHS <go>}
- Portugal FinMin Open to Unconventional Monetary Easing: FT
- Iran nuclear chief Salehi: 30K new centrifuges are needed to meet domestic fuel demands
- Mexico Central Bank Gov Carstens: Remainder of 2014 to show a robust recovery after a weak Q1

Keep an eye on :
- ALV GY : Allianz to Buy More Shares as Rates Stay Low, Tagesspiegel Says
- AZA IM : Etihad to Take Holding of Up to 49% in Alitalia: Repubblica
- EN FP : Bouygues Plans to Offer Aggressive Internet Offer, declines to comment on rumors regarding discussion with Iliad or/and Telefonicas: Figaro {NSN N3WSG16S972X <go>}
- CNA LN : Centrica Searches for New CEO as Part of Broader Review, FT Says
- DUFN VX : Dufry Unlikely to Pay Dividends, CEO Tells Schweiz am Sonntag
- ENI IM : Italy May Nominate Descalzi as New Eni CEO, Repubblica Reports
- FNC IM : Finmeccanica Bribery Case Said to Be Resolved: Reuters Link
- GIVN VX : Givaudan +ve article in the WSJ, even if expensive still some potential
- GLEN LN : Glencore to Sell Its Stake in Las Bambas Copper Mine for $5.85b
- HEIA NA : Heineken Weighing Sale of ~100 U.K. Pubs, Sunday Times Reports
- IPN FP : Ipsen Announces a first set of results on positive phase III clinical study of Dysport® in the treatment of adults suffering from Upper Limb Spasticity
- LG FP : Private Equity firms are targeting assets of Lafarge & hocim
- MRW LN : Morrison Investors Question Strategy After Profit Forecast: FT
- MNOD LI : Norilsk Nickel Approves Possible Early Eurobonds Buyback: IFX
- NESN VX : Nestle Says Chairman Brabeck Diagnosed With Curable Illness
- RCO FP : Remy Cointreau Extends Maturity on $255m Facility to April 2019
- RCS IM : RCS sees shares rise on rumours of new shareholders
- SPM IM : Eni Proposes Carbonetti as Saipem Chairman Before May 6 AGM
- STAN LN : Orix Said to Weigh Bid for StanChart’s HK Consumer Credit Unit
- SY1 GY : Symrise Offers to Buy All Shares of Diana Group {NSN N3XM3F6VDKHT <go>}
- GLE FP : Societe Generale buys 7% in Rosbank from Interros, raises stake to 99.4%
- TSCO LN : Tesco to Make Further Price Cuts, Sunday Express Reports
- FP FP : Total Will Push Ahead With Kaombo Project in Angola, CEO Says
- UBSN VX : UBS to pay half of profit to shareholder - FT
- VIV FP : Vivendi Says Process for Choosing SFR Buyer Was Transparent

>>> Mexico Central Bank Gov Carstens: Remainder of 2014 to show a robust recover

Mexico Central Bank Gov Carstens: Remainder of 2014 to show a robust recovery after a weak Q1 - financial press-

Says: "Even if there might be a slower first quarter, what we expect is that we will have a much stronger rest of the year... We're going to wait until mid-May when we issue our first inflation report for this year... It's very hard to expect emerging markets to keep growing at a fast pace when advanced economies are all pretty much growing below potential."

>>> Russian Foreign Ministry: Announcement by Kiev govt to mobilise the army aga

Russian Foreign Ministry: Announcement by Kiev govt to mobilise the army against a rebellion in Ukraine's eastern cities is a "criminal order"; Seeking emergency meeting of UN Security Council

- Says: "It is now the West's responsibility to prevent civil war in Ukraine... The situation in southeastern Ukraine is taking on an extremely dangerous character. The authorities in Kiev, who put themselves in power as a result of a coup d'etat, have set a course to use force to put down popular protests." 

- Follow-up: Russian press reporting UN Security Council will meet at 20:00ET on Ukraine crisis

>>>> ECB's Coeure: Asset purchases may be an appropriate tool to fight low infla

ECB's Coeure: Asset purchases may be an appropriate tool to fight low inflation - financial press
- Says: "Asset purchases are an instrument that we are ready to use if we deem necessary... Further monetary easing is ... not excluded, but remains contingent on outcomes... If such easing is called for, the Governing Council is unanimous in its commitment to use also unconventional instruments within its mandate."

FT : China snaps up Glencore copper mine for $6bn

Glencore Xstrata is selling its Las Bambas copper mine project to a Chinese consortium for at least $5.85bn, underscoring China’s continued demand for commodities to feed industrial growth and bolstering the balance sheet of the resources group led by Ivan Glasenberg.
The sale to a consortium led by MMG, a subsidiary of state-owned Minmetals, is one of the largest acquisitions of mining assets by China. Las Bambas in Peru is one of the world’s largest mines under construction, expected to supply about 450,000 tonnes of copper annually.

The price is at the upper end of the $5bn to $6bn range that most industry analysts had expected. “Our willingness to sell reflects the level of the offer and our conviction that we can utilise the sale proceeds to create additional shareholder value,” Mr Glasenberg said.
Sunday’s deal comes almost a year after Glencore bought Xstrata, the mining group that started to develop the mine. Chinese competition authorities required Glencore to try to sell Las Bambas as a condition of approving the Xstrata merger – meaning it was always seen as probable that the mine would be bought by a Chinese group.
Glencore had been in talks for months with the MMG-led consortium, trying to agree a price amid an uncertain short-term outlook for copper prices.
Under the terms of the deal MMG and its partners will also pay all the development costs that Glencore incurs this year on Las Bambas, up to the close of the deal. By the end of March those costs amounted to $400m, Glencore said.
The deal raises the prospect of a return of cash to Glencore shareholders, led by Mr Glasenberg who owns about 8 per cent of the group as well as being chief executive.
Glencore said the deal would “immediately and materially de-gear” its balance sheet. It said it would look for opportunities to reinvest capital but that any surplus capital, “subject to maintaining an efficient balance sheet . . . will be returned to shareholders, within an appropriate timeframe and structure”.
Mr Glasenberg has been one of the most vocal critics of other mining companies that have delivered lacklustre returns to shareholders following years of cost escalation and heavy capital investments during a resources boom. He has also been sceptical of “greenfield” mining projects such as Las Bambas – those started from scratch, where cost overruns are seen as more likely.
The deal is expected to close by the end of September, Glencore said. MMG owns 62.5 per cent of the consortium buying the mine, while Guoxin International Investment owns 22.5 per cent and Citic Metal owns 15 per cent.