>>> 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


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

--With assistance from Max Abelson in New York and Chris
Dolmetsch in New York State Supreme Court in Manhattan. 

To contact the reporter on this 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

Link to Company News:{JPM US <Equity> CN <GO>} Link to Company News:{005930 KS <Equity> CN <GO>} Link to Company News:{005380 KS <Equity> CN <GO>}

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

To contact Bloomberg News staff for this story: Allen Wan in Shanghai at +86-21-6104-3041 or awan3@bloomberg.net

To contact the editor responsible for this story: Allen Wan at +86-21-6104-3041 or awan3@bloomberg.net

>>> US After Hours

After Hours Summary: CLC +6.8%, RHT +5.0%, JBL +1.5%, CLW -1.0% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: CLC +6.8%, RHT +5.0%, JBL +1.5%

Companies trading higher in after hours in reaction to news: MEAS +10.3% (to be acquired by TE Connectivity (TEL) for $86 cash per share or a total transaction value of ~ $1.7 bln, including assumption of net debt), QGEN +2.9% (receives FDA approval of artus CMV RGQ MDx kit to monitor Cytomegalovirus viral load in organ transplant patients), ETN +1.2% (announced settlement of all litigation with Triumph Group (TGI); Eaton to pay $147.5 mln), OMED (provided update on FDZ8-Fc (OMP-54F28) Phase 1 clinical trials; Partial clinical hold formally placed on trials)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: CLW -1.0%

Companies trading lower in after hours in reaction to news: SDLP -3.5% (announced public offering of 6.1 mln common units), OAKS -3.5% (announced public offering of 3.5 mln additional shares of common stock), EDR -3.0% (announced 19.8 mln common stock offering), CHFC -2.6% (announced $70 mln public offering of common stock), GSAT -1.7% (filed for an offering of ~$9.94 mln shares of voting common stock by selling stockholder)

>>> Asian Update

Asian Market Update: Equities tracking US rally as Fed Chair Yellen glosses over rising inflation

***Economic Data*** - (NZ) NEW ZEALAND Q1 GDP Q/Q: 1.0% V 1.1%E; Y/Y: 3.8% (fastest growth since 2007) V 3.7%E - (CN) China State Administration of Foreign Exchange (SAFE): Q1 current account surplus $7.0B v $7.2B prelim - (KR) SOUTH KOREA MAY PPI Y/Y: 0.0% V -0.3% PRIOR (prices stop falling for the first in 20 months) - (AU) AUSTRALIA MAY RBA FX TRANSACTIONS MARKET (A$): 489M V 325M PRIOR - (JP) Japan investors bought net ¥638.2B in foreign bonds last week vs bought net ¥1.33T prior week; Foreign Investors bought net ¥238.1B in Japan stocks last week vs bought net ¥341.0B in prior week

Market Snapshot (as of 03:30 GMT): - Nikkei225 +1.6%, S&P/ASX +1.1%, Kospi -0.1%, Shanghai Composite -0.3%, Hang Seng +0.2%, Sept S&P500 +0.1% at 1,950, Aug gold +0.3% at $1,276, Jul crude oil +0.3% at $106.31/brl

***Highlights/Observations/Insights*** - FOMC policy statement contained few surprises, maintaining $10B/month pace of taper, giving a gentle acknowledgement of "further improvement" in labor market and a rebound in fixed investment. Despite the much higher CPI data on Tuesday, FOMC reiterated that inflation is running below the longer-run objective, deferring to the release of its preferred PCE measure. FOMC staff projections cut 2014 GDP to 2.2% midpoint from 2.9% due to soft Q1, and affirmed GDP for 2015 and 2016. Unemployment targets for 2014 and 2015 were also lowered slightly, but PCE projections were maintained for the next 3 years. Fed rate path forecast and the infamous "dots" were also little changed despite the better than expected run of employment and higher inflation data - vast majority of the members see Fed Funds rate no higher than 1.25% in 2015. Fed Chair Yellen delivered a measured press conference and Q/A, most notably stating that there is no mechanical formula for what is "considerable time" between the end of taper and the first rate hike, brushing over the last time when she fell into the trap of quantifying the lag as "6 month period."

- Less hawkish than expected Fed statement/projections produced a predictable market reaction - lower USD, higher precious metals, lower bond yields, and higher equities. Among the most notable movers - SP500 index hit record levels at 1,957, Spot Silver at 1-month high, GBP briefly retested 1.70, AUD rose 60pip above $0.94, and NZD was up 50pips at a 6-week high before retreating following slightly weaker than expected New Zealand GDP. USD/JPY also retreated back below ¥102 handle.

- New Zealand Q1 GDP hit a 5-year high y/y but missed slightly q/q. Private consumption growth slowed to flat from 1.2%, while government spending rose 1.1% v -0.5% prior and Gross fixed capital formation rose 2.1% v 0.9% prior. Construction component of fixed investment was particularly impressive rising 12.5% q/q, the largest increase in construction in 14 years.

- Rio Tinto became the latest producer to lower the prices of its low-grade iron ore, increasing the discount on the grade from 6% to 13% starting July 1st to $73/tonne. This follows a similar cut by Fortescue overnight.

- Red Hat delivered stellar numbers for Q1, sending its shares up 5% afterhours above $55. Subscription revenue was up 18%, while billings slowed (inline with prior forecast) to +16%. RHT also announced acquisition of open source cloud computing services firm eNovance for €70M and adjusted its guidance in part to reflect the deal (Cuts FY15 $1.52-1.54 v $1.55e, Raises R$1.760-1.785B v $1.75Be (prior $1.54-1.56, R$1.73-1.755B).

***Speakers/Political/In the Papers*** - (CN) China Premier Li Keqiang: China growth rate has moderated, but not at risk of hard landing - (CN) 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 - financial press - (CN) PBoC Gov Zhou Xiaochuan: Confident China to maintain steady economic growth and financial stability, which would ensure market's confidence in CNY - Chinese press - (JP) BOJ member Morimoto: Japan economy continues to recover moderately as a trend; likely to reach 2% target around FY15; Fall-off in consumption expected to wane after summer - (JP) Japan Cabinet may approve growth strategy on Tues June 24th - Japanese press - (EU) Bundesbank's Dombret: Would like to see little market intervention as possible; last ECB decision was very appropriate - financial press interview

***Fixed Income/Commodities/Currencies*** - (CN) PBoC to drain CNY20B in 28-day repos (35th consecutive drain); Injects net CNY15B this week v injected CNY104B prior (6th consecutive week of net injection) - (JP) BOJ offers to buy ¥300B in 1-3yr JGB, ¥200B in 3-5yr JGB and ¥400B in 5-10yr JGB

***Equities*** US markets: - MEAS: To be acquired by TE Connectivity for $86/shr in cash; Total deal value $1.7B; To be accretive in 2015; +10.4% afterhours - RHT: Reports Q1 $0.34 v $0.33e, R$424M v $415Me; Guides Q2 $0.38 v $0.38e, R$432-436M v $428Me; Cuts FY15 $1.52-1.54 v $1.55e, Raises R$1.760-1.785B v $1.75Be (prior $1.54-1.56, R$1.73-1.755B) - conf call; +5.0% afterhours - OMED: Provides Update on FZD8-Fc (OMP-54F28) Phase I Clinical Trials; +0.6% afterhours - RIO: To increase the discount on low-grade iron ore from 6% to 13% starting July 1st to $73/tonne - AFR; +0.4% afterhours - UTX: Announces agreement with Canada govt for maritime helicopter program; Reaffirms FY14 EPS guidance of $6.65-$6.85; +0.1% afterhours

- MRKT: Prices 49.3M share IPO (upsized from 45.7M) at $24, compared to $23-25/shr initial range

Notable movers by sector: - Consumer Discretionary: JB Hi-Fi JBH.AU +0.8% (FY14 guidance); Ansell ANN.AU +1.1% (analyst action); Fast Retailing 9983.JP +2.1% (Uniqlo unit US expansion); Kao Corp 4452.JP +0.9% (speculation on H1 results) - Consumer staples: Nippon Meat Packers 2282.JP +0.5% (to increase capacity) - Materials: Golden Rim Resources GMR.AU +50.0% (drilling update) - Energy: APA Group APA.AU +0.8% (raises guidance) - Industrials: Sichuan Chengfa Aero-Science & Technology 600391.CN +7.9% (receives major contract from GE); Air New Zealand AIR.NZ +0.2% (CEO comments); Asciano Limited AIO.AU +4.8% (reaffirms guidance); Teijin 3401.JP +1.7% (plans to increase production) - Technology: Delta Electronics 2308.TW +1.5% (analyst action)

>>>US Close Dow+0,58% S&P+0,77% Nasdaq+0,59%

Closing Market Summary: Stocks Climb While Fed Tapers Again

The major averages posted modest gains of Thursday after the Federal Open Market Committee announced another $10 billion taper, which was widely expected. The S&P 500 climbed to a new record closing high at 1956.98, adding 0.8% with all ten sectors posting gains.

Equity indices spent the first half of the session near their flat lines as market participants held pat ahead of the afternoon statement from the Fed. The $10 billion reduction lowered the size of monthly asset purchases to $35 billion, while the remainder of the policy statement struck a familiar tone.

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.

During the press conference, Fed Chair Yellen justified the taper by saying the economy is on track to meet its objectives and that the GDP contraction observed in the first quarter was an aberration. Ms. Yellen also noted that inflation remains below the 2.0% objective, which could lead to broader risks.

The utilities sector (+2.2%) finished in the lead after spending the entire session atop the leaderboard. Thanks to the solid gain, the sector extended its June advance to 2.7%, while also pushing its year-to-date gain to 14.1%.

Elsewhere among countercyclical sectors, telecom services (+0.5%) lagged, while consumer staples (+1.2%) and health care (+0.8%) finished ahead of the broader market.

Meanwhile, the six cyclical sectors ended mixed when compared to the S&P 500. Yesterday's leading group—financials—advanced 0.7%, but could not keep up with the broader market. That was also the case with technology (+0.5%) and industrials (+0.5%).

It is worth mentioning that the industrial sector was held back by defense contractors (PHLX Defense Index +0.2%), while transports rallied broadly after FedEx (FDX 148.95, +8.64) reported better than expected results. The stock surged 6.2%, which also gave a boost to UPS (UPS 102.79, +1.18). For its part, the Dow Jones Transportation Average jumped 1.5%.

Also of note, the weakest sector of the year—consumer discretionary (+0.8%)—trimmed its 2014 loss to 0.5%. Shares of Amazon.com (AMZN 334.38, +8.76) played a part in today's outperformance, rallying 2.7% after the company unveiled a smartphone, which will be available in five weeks.

The afternoon rally to new highs saw some participants lift their hedges, which sent the CBOE Volatility Index (VIX 10.60, -1.46) to a new low for the year.

Treasuries, meanwhile, held slim gains into the afternoon and climbed to new highs after the FOMC statement crossed the wires. The 10-yr note added half a point, lowering its yield to 2.59%.

Participation remained on the light side with just over 610 million shares changing hands at the NYSE.

Economic data was limited to the weekly MBA Mortgage Index and Current Account data for Q1:

* The MBA Mortgage index fell 9.2% to follow last week's 10.3% increase.  * The current account deficit for the first quarter totaled $111.20 billion while the Briefing.com consensus expected the deficit to hit $97.80 billion. The fourth quarter deficit was revised to $87.30 billion from $81.10 billion. 

Tomorrow, weekly initial claims (consensus 313K) will be released at 8:30 ET, while the June Philadelphia Fed survey (consensus 13.4) and May Leading Indicators (consensus 0.5%) will cross the wires at 10:00 ET.

* S&P 500 +5.9% YTD  * Nasdaq Composite +4.5% YTD  * Dow Jones Industrial Average +2.0% YTD  * Russell 2000 +1.8% YTD