Hearing Morgan Stanley raises European Energy Sector to Overweight from Neutral; European Materials Sector raised to Neutral from Underweight
- European Telecommunication Sector cut to Underweight rating from Neutral
{http://dailym.ai/1gK7r7Z} Full article with Pictures
The unsellable estate finally finds a buyer! Bel Air's very own Palace of Versailles sells for $102 MILLION after seven years on the market... and the new owner is a 'mystery French billionaire'
- - The Fleur de Lys estate in Bel Air has become the most expensive home ever sold in LA
- - Seven years after it was first put on the market - and with the asking price reduced by $23 million - the property has been sold to a 'highly secretive French billionaire'
- - The 50,000-sq-ft mansion was custom built in 2002 by socialite Suzanne Saperstein and her then husband, Texan billionaire David Saperstein
- - As well as 12 bedrooms and 15 bathrooms, the mansion contains a 50-seat, satin-lined private cinema, a two-storey wood-paneled library stocked with first-edition books and garage parking for nine cars
* The sector re-rating is underway.
We have seen the sector start to re-rate in the first quarter with the price toNPV premium popping up out of the 3-year trading range during the first
quarter of this year. While it has retraced a little, the stable commodity price
performance is a solid base for increased earnings confidence and solid cash
flows. Price volatility is at or near 10 year lows for most industrial commodities
and we expect ongoing low volatility will continue to support the mining sector
re-rate. Our top picks in the Sector are Rio Tinto, Lonmin and Randgold.
* Precious metal price upgrades, mostly modest industrial metal price moves
and bulks downgrades.
Our commodity team has upgraded its precious metals view and has increased
its gold price estimates for 2014 by 10% and 6% in 2015. In the base metals,
we have downgraded marginally our expectations for copper, zinc and
aluminium (-4%, -0.3% and -2% in 2014) but upgraded nickel by 2% in 2014
and 11.5% in 2015 as the Indonesian export ban impacts nickel availability.
Coal demand and pricing has been weaker than expected and we have
lowered our 2014 forecasts by -9% for coking coal and -7% for thermal. We
have marked to market the iron ore price and lowered this year’s forecast by -
3% (we remain convinced that the price will easily average above US$100/t).
* Earnings expectations generally lowered with the exception of the gold miners
We have generally lowered our earnings expectations for the industrial metals
miners including Anglo (-4%) BHP (-5%), Glencore (-14%) and Rio Tinto(-4%).
Our precious metals miners’ earnings have generally risen off low bases with
the increased gold price expectation including Randgold up 47% and African
Barrick up 51% in 2014.
Metso OYJ Says no talks with Weir, but confirms unsolicited bid
- Metso confirms that it has recently received an unsolicited approach by Weir with a proposal for commencing discussions concerning a potential combination of the two companies. Metso occasionally receives these types of proposals and, in case the Board of Directors of Metso considers them serious, evaluates such proposals. Contrary to market rumors, Metso is currently not and has not been engaged in discussions with Weir although it is in the process of considering Weir's proposal.
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O2/E-Plus Merger Causes Need to Act on Spectrum: German Watchdog 2014-04-01 08:23:46.233 GMT
By Cornelius Rahn April 1 (Bloomberg) -- Merged operator would hold more than half of 900 MHz/1,800 MHz frequencies, causing need to act “in the short term” to ensure fair spectrum allocation, German Federal Network Agency says in statement on website. * Following approval of merger, regulator aims to start allocation process for separate bundles of spectrum this year to allow competitors to acquire frequency portfolio in a non-discriminatory manner * Regulator sees no need to act in the short term on 800MHz, 2GHz, 2.6GHz and 3.5GHz frequencies as a result of the merger * Link to statement: http://bit.ly/1s1AYOX * NOTE: German network agency works closely with EU Commission on approval process * NOTE: O2 Should Sell at Cost to MVNO Post E-Plus Deal, United Internet CEO said March 27
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To contact the editor responsible for this story: Cornelius Rahn at +49-30-70010-6212 or crahn2@bloomberg.net
Fitch: Austrian Banks are Most Exposed to Russian Risk
- Austrian banks are most exposed to Russian risk through their local subsidiaries, Fitch Ratings says. European banks have greater direct exposure to Russia than US and Asian lenders but the amounts are generally manageable.
- International bank direct claims on Russia were USD242bn at end-3Q13, with just over three-quarters (USD184bn) relating to European banks, according to the latest data from the Bank for International Settlements published 9 March. North American banks made up 16% of the exposure, while Asia-Pacific bank positions were only 7%.
--> Stock trading higher, Next Levels 72.89 & 74.59
70 is becoming a support, if mkt moving lower 68.95 & 67 lower support
12M target price consensus is @ €77
France Mar New Car Registrations +8.9% y/y
- Peugeot +15% y/y
- Renault +20.6% y/y
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Airbus, Atlantia, Bayer, H&M Among BofAML EMEA Top Picks for 2Q 2014-04-01 07:31:27.244 GMT
By Chiara Remondini and Francesca Cinelli April 1 (Bloomberg) -- BofAML selects new list of 10 S/T stock recommendations for EMEA based on views of significant mkt, business-related catalysts that may affect cos. in 2Q. * Sees 10 stocks significantly outperforming or underperforming peers by most significant amount in quarter * Top EMEA Ideas for 2Q: * Airbus, Assa Abloy, Atlantia, Bayer, Beiersdorf, BG, H&M (all buy) * Saint Gobain, Swatch Group, Tesco (all underperform) * BofAML plans to publish list at beginning of each qtr
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporters on this story: Chiara Remondini in Milan at +39-02-8064-4241 or cremondini@bloomberg.net; Francesca Cinelli in Milan at +39-02-80644-252 or fcinelli@bloomberg.net To contact the editors responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net Jurjen van de Pol
BHP Billiton is considering spinning off its nickel, manganese, and aluminium businesses into a separate unit as a way to boost shareholder returns amid an industry-wide drive to increase efficiency.
The Anglo-Australian miner said on Tuesday that it was studying the next phase of its “simplification” strategy, which included structural options, in response to speculation about its plans to sell its slower-growing non-core units.
“We believe that a portfolio focused on our major iron ore, copper, coal and petroleum assets would retain the benefits of diversification, generate stronger growth in free cash flow and a superior return on investment,” BHP said.
“By increasing our focus on these four pillars, with potash as a potential fifth, we will be able to more quickly improve the productivity and performance of our largest businesses.”
Shares in BHP climbed 1.5 per cent to A$37.04 following the announcement made to the Australian stock exchange
The statement came after the Australian Financial Review reported that BHP had appointed Goldman Sachs to develop a proposal to spin off its non-core assets into a separate company that could be worth up to A$20bn, and listed on the London, South African and Australian stock exchanges.
BHP – the world’s largest mining company by market capitalisation – and other global miners are on a drive to boost shareholder returns and efficiency after disappointing investors in recent years.
Since his appointment as BHP chief executive last year, Andrew Mackenzie has stressed that he would actively manage the company’s portfolio of businesses to boost shareholder returns.
BHP recently sought buyers for its Nickel West operation in Western Australia.
“The rationale for spinning off the assets comes down to capital allocation and the tension between the desire to boost shareholder returns and invest in new projects,” said a senior banker who asked not to be named.
“It is more efficient to release these non-core assets, which are not a priority for BHP, which can then seek capital on the market.”
Goldman Sachs declined to comment on whether it had been appointed by BHP to explore a spin-off.
In its statement, BHP said the simplification of its portfolio was a priority that it has been pursuing for several years.
“In the past two years alone, the Group has announced or completed divestments in Australia, the US, Canada, South Africa and the UK, including petroleum, copper, coal, mineral sands, uranium and diamonds assets,” it added.
“Any course of action remains subject to detailed review and an assessment of alternatives.”
Glyn Lawcock, UBS analyst, said: “BHP has already made it clear these assets are non core and have become a distraction. By focusing attention on its core business, the company probably feels it can generate better earnings growth.”
Mr Lawcock said distributing shares in a newly demerged business to existing BHP shareholders may prove a less risky option than attempt an initial public offering for a separate business. He said it may not be easy for BHP to sell off the large number of non-core businesses it has on its books.
BHP has a history of spinning off non-core assets. In 2002, it demerged its steel business, which subsequently became BlueScope Steel.
BHP shareholders would have to approve any plan to demerge and spin off its non core assets in a single unit.