>>> US Gapping down

Gapping down

M&A news: KND -1% (to commence all-cash tender offer to acquire all outstanding shares of Gentiva Health Services for $14.50/share; launches 9 mln share offering of common stock), SHPG -3.1% (ongoing M&A speculation)

Select financial related names showing weakness: UBS -1.1%, DB -1%, BBVA -0.8% (downgraded to Equal Weight from Overweight at Barclays). .

Metals/mining stocks trading lower: IAG -3.8%, CDE -1.7%, MT -1.5%, BHP -1.3%, GDX -1.2%, SLW -1%, GOLD -1%, AU -0.8%, GLD -0.6%.

Select oil/gas related names showing early weakness: YPF -2.5%, STO -1.7%, TOT -0.8%, SDRL -0.7%, BP -0.6% .

Other news: CALL -6% (light volume; still checking), DRL -3.9% (still checking), KONA -3.5% (is offering to sell 2,000,000 shares of its common stock in an underwritten public offering), MRIN -3.5% (files for ~1.72 mln share common stock offering by selling shareholders), QIWI -1.7% ( prices public offering ), MHR -0.9% (disclosed it is increasing its offer consideration for the shares of Ambassador and is no longer making the offer subject to any closing conditions), RH -0.6% (announced its intention to offer $300 million aggregate principal amount of convertible senior notes due 2019 in a private placement), TSLA -0.3% (following yesterday's 18 point/9% move higher; NY Governor Cuomo signs legislation on agreement between automobile dealers and Tesla Motors).

Analyst comments: TRV -1.2% (downgraded to Market Perform from Outperform at BMO Capital ), HIMX -4.4% (downgraded to Sell from Neutral at UBS), BRCM -0.7% (downgraded to Hold from Buy at Benchmark ),

>>> US Early premarket gappers

Early premarket gappers

Gapping up: ANFI +27.7%, SYUT +6.9%, SAEX +6.4%, EW +5.6%, GTIV +3.9%, YGE +3.7%, MDT +2.7%, MU +2.5%, SPEX +1.6%, STM +0.9%, SAP +0.8%, PSEC +0.7%, EZPW +0.6%

Gapping down: CALL -6%, KONA -3.5%, MRIN -3.5%, SHPG -3.1%, QIWI -1.7%, MT -1.5%, BHP -1.3%, KND -1%, DB -1%, KFY -0.9%, RH -0.6%, GLD -0.6%

FT Lex : Alstom: messy proposal

Alstom: messy proposal The Mitsubishi/Siemens proposal for parts of Alstom has been concocted with French politicians in mind. And it shows. Four groups of shareholders are involved – Siemens, Mitsubishi, GE and Alstom. The proposal is messy for all of them. Mitsubishi wants to buy minority stakes in three of Alstom’s energy businesses for €3.1bn, and a 10 per cent stake in Alstom itself (worth €0.9bn at today’s price). So the Japanese company pays €4bn and gets control of nothing. Siemens shareholders look only slightly better off. They pay €3.9bn for control of Alstom’s gas business and its lucrative service contracts. And if the deal goes ahead, Siemens will have blocked, or at least delayed, GE’s European ambitions. But to win political favour, Siemens’ offer comes with three-year job guarantees in France and Germany. And the promise of talks over Alstom’s rail businesses once the energy deals are complete hint that deal speculation (and hence French government meddling) will drag on for years. GE shareholders get to observe – agog – what European political manoeuvring can do to what was a relatively straightforward deal. Their company has offered $17bn for Alstom’s thermal, renewables and grid businesses, but will now have to decide whether to increase the offer or let Mitsubishi and Siemens lie in the bed they have made. Finally we come to Alstom shareholders, who are – nominally – the ones who will be making the decision. The Mitsubishi/Siemens offer provides a cash injection of €7bn (against net debt of €3bn) and allows the French group to preserve its independence. But they lose one of their energy businesses, get a minority shareholder in three others and face protracted talks over what happens to their rail business. They might well be pining for the quiet life offered by GE.

(BFW) Woodside Petroleum Share Sale Books Covered, Terms Show

Woodside Petroleum Share Sale Books Covered, Terms Show
2014-06-17 09:32:08.609 GMT


By Alexis Xydias
     June 17 (Bloomberg) -- Books are expected to remain open
until 4pm London time for European accounts and 4pm New York
time for U.S. accounts, according to terms obtained by Bloomberg
News.
  * NOTE: Shell is selling most of its 23% stake in Woodside,
    raising about $5b {NSN N7B1YB6K50YI<Go>}


Link to Company News:{WPL AU <Equity> CN <GO>}
Link to Company News:{RDSA LN <Equity> CN <GO>}

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

To contact the reporter on this story:
Alexis Xydias in London at +33-1-5365-5019 or
axydias@bloomberg.net

To contact the editor responsible for this story:
Andrew Rummer at +44-20-7073-3722 or
arummer@bloomberg.net

>>> Kazakhmys PLC Kazakhstan govt to reduce some mineral extraction tax rates at

Kazakhmys PLC Kazakhstan govt to reduce some mineral extraction tax rates at some of company's mature assets; completes acquisition of Koksay

Confirms that it has completed the acquisition of Koksay, first announced on 27 February 2014. Koksay is the Group's third major growth project. 

As previously announced, the purchase price is $260 million in cash, of which $65 million is deferred. Of the deferred consideration, $30 million is payable on 1 January 2015 and $35 million on 31 July 2015. The second instalment is subject to confirmation of reserves. 

The Koksay deposit is in south eastern Kazakhstan around 234 kilometres from Almaty and is well located for existing infrastructure. The mine has a total resource of approximately 3.4 MT of copper, with an average grade of 0.48%. There are by-products of gold, silver and molybdenum. The project is at scoping stage and has an estimated mine life of over 20 years with average annual production of around 80 kt of copper cathode equivalent, 60 koz of gold, 400 koz of silver and 1 kt of molybdenum in concentrate. 

Announces that the Government of Kazakhstan has agreed to reduce mineral extraction tax ('MET') rates at some of the Group's mature assets. Lower MET rates have been applied to the deposits in the Zhezkazgan Region, excluding Zhomart mine, and at Konyrat mine in the Central Region. 

The assets benefiting from lower MET rates are all within the two regions which have been identified for potential disposal, as part of the proposed restructuring announced on 27 February 2014. These assets have been particularly affected by declining grade and low profitability. 

The new MET rates are effective retrospectively from 1 January 2014 and are applicable for one year after which a further application can be made. The value of the reduction for a 12 month period, at current metals prices, is approximately $40 million.

Les Echos : Deficit in 2014: the Court of Auditors fear a "close" deficit of 4%

Deficit in 2014: the Court of Auditors fear a "close" deficit of 4%

The deficit could even be "slightly" more than 4% if the growth is not at the rendezvous, prevent judges from the Court of Auditors.
The report released Tuesday morning by the Court of Auditors promises to enliven parliamentary debates coming days on the supplementary budget (see document below). Leaning on the situation and the outlook for public finances, the magistrates of the rue Cambon serious doubts on multi-year commitments of France on deficit reduction. And when even that Bercy has just revised upwards its target for 2014 of 3.6% to 3.8% in the draft Finance Act amending, it "may be exceeded," warns the Court. According to her, "it could nevertheless be p close to 4% of GDP in 2014, slightly above see if the government growth forecast did not come true".
Lower input tax revenue
Magistrates highlight several risks to the government's target. The first is to lower tax revenues entries. Actant that taxes fall ill in the state coffers, Bercy just lowered its forecast of 5.3 billion compared to initial budget. Enough! Says in substance the Court of Auditors, for whom "there is a risk to fall 2 to 3 billion euros." And again, this is assuming that growth is well 1% on average this year, as stipulated by the Government.
But on this point, the High Council of Public Finance last week, indicated that, without being out of reach, this prediction "now seemed high," says the Court. As in 2013, is on the revenue side that disappointment may come. The expenditure side, the Court considers "moderate" risk of exceeding. The side of the state, where Bercy has canceled 1.6 billion euros of credits during the year, new goals "can and must be achieved." But there is "no safety margin for unexpected expenses," she warns. In contrast, the side of local authorities exceeded expenditure targets is "probable."
The Court of Auditors did not write well, but in his eyes, a deficit to 4% this year (against 4.3% in 2013) thus appears already as a minimum. What a domino effect weakens public finances trajectory leads to the following years. And a fortiori, the ability of France to maintain its objective of 3% in 2015. Regarding the outlook for 2015-2017, "the actual and structural deficits and public debt could be higher than those registered in the stability program, said the Court. While Bercy sees debt to stabilize at 95.6% of GDP in 2015 before declining, judges judge "probable" that it increases "at least" until the end of 2015.
Difficult to achieve the 21 billion planned economies
The risk of not holding objectives "is particularly important for the year 2015." While the risks on the revenue are not "significant", the "main problem" is to achieve 21 billion euros in savings programmed. Bercy, in fact, predicted that 40% of the effort plan to save 50 billion from 2015 to 2017 leads in the first year. "Very ambitious" goal judge court. And even more so that "it appears that many economies will be the same each year or increasing over time, which is hardly compatible with a concentration of their effects on 2015."
For judges, with the objectives of spending in 2015, is actually based on the assumption of a "sharp decline in local investment and the construction of a very tight budget for the state." But on the first point, the local authorities could at least reduce their investments in increasing the rates of local taxes and borrowing more, their financing conditions had improved, the Court is concerned. On the second point, the necessary savings to the state assume "deep reforms" (rather than shots plane) while the savings that result from the process of modernization of public action (MAP) "are still far to be up to this challenge. "
In total, "with the objectives of public deficit and structural strength for 2015 will be in these circumstances, very difficult," the judge Court of Auditors. It further recalls that the effort will be based on stakeholders (local authorities, Unédic) "which the state does not control spending." What promise new heated discussions between Paris and Brussels in the coming months.
Lower tax burden limited to 14 billion from 2015 to 2017
Pressed by its majority and anxious to avoid a new tax ras-le-bol, the executive wants to engage in a lower tax burden. This will be very limited, however, said the Court of Auditors in its annual report on public finances. Magistrates figure to 14 billion euros over three years net decrease in the tax burden induced by the new measures. If the pact responsibility and scalability CICE represent relief 35 billion euros, the government budget strategy presented in April provides "a parallel increase other taxes amounting to 21 billion." And include, for example, higher rates of climate-energy contribution (2000000000) and the contribution to the public electricity service (3000000000); replacing the heavy weight tax (1 billion) or higher local tax rates (4000000000).

Les Echos : Déficit 2014 : la Cour des comptes craint un déficit «proche» de 4 %

Le déficit pourrait même être « légèrement » supérieur à 4 % si la croissance n’est pas au rendez-vous, préviennent les magistrats de la Cour des comptes.
Le rapport publié ce mardi matin par la Cour des comptes promet d’animer les débats parlementaires des prochains jours sur le collectif budgétaire (voir document ci-dessous). Se penchant sur la situation et les perspectives des finances publiques, les magistrats de la rue Cambon émettent de sérieux doutes sur les engagements pluriannuels de la France en matière de réduction du déficit. Et ce alors que même que Bercy vient tout juste de réviser à la hausse son objectif pour 2014 de 3,6 % à 3,8 % dans le projet de loi de Finances rectificatif, celui-ci « risque d’être dépassé », prévient la Cour. Selon elle, il « pourrait être proche de 4% du PIB en 2014, voir légèrement supérieur si la prévision de croissance du gouvernement ne se réalisait pas », .
Moindres entrées de recettes fiscales
Les magistrats mettent en avant plusieurs risques pesant sur l’objectif gouvernemental. Le premier tient aux moindres entrées de recettes fiscales. Actant le fait que les impôts rentrent mal dans les caisses de l’Etat, Bercy vient d’abaisser sa prévision de 5,3 milliards par rapport à projet de budget initial. Insuffisant !, indique en substance la Cour des comptes, pour qui « il subsiste un risque à la baisse de 2 à 3 milliards  d’euros ». Et encore, c’est à supposer que la croissance soit bien à 1 % en moyenne cette année, comme le prévoit le gouvernement.
Or sur ce point, le Haut Conseil des finances publiques a, la semaine dernière, indiqué que, sans être hors d’atteinte, cette prévision « paraissait désormais élevée », rappelle la Cour. Comme en 2013, c’est donc du côté des recettes que la déception risque de venir. Du coté des dépenses, la Cour juge « modéré » le risque de dépassement. Du coté de l’Etat, où Bercy vient d’annuler 1,6 milliard d’euros de crédits en cours d’année, les nouveaux objectifs « peuvent et doivent être atteints ». Mais il n’existe « aucune marge de sécurité pour des dépenses imprévues », prévient-elle. En revanche, du côté des collectivités locales, un dépassement des objectifs de dépenses est « probable ».
La Cour des comptes ne l’écrit pas ainsi mais, à ses yeux, un déficit à 4 % cette année (contre 4,3 % en 2013) apparaît donc déjà comme un minima. Ce qui, par effet domino, fragilise la trajectoire de finances publiques conduit des années suivantes. Et à fortiori, sur la capacité de la France à tenir son objectif de retour à 3 % en 2015. Concernant les perspectives pour 2015 à 2017, « les déficits effectifs et structurels, ainsi que la dette publique, pourraient être plus élevés que ceux inscrits dans le programme de stabilité, indique la Cour. Alors que Bercy voit la dette se stabiliser à 95,6 % du PIB en 2015 avant de décroître, les magistrats juge «probable » qu’elle augmente « au moins » jusqu’à fin 2015.
Difficile de réaliser les 21 milliards d’économies programmés
Le risque de ne pas tenir les objectifs « est plus particulièrement important pour l’année 2015 ». Si les risques sur les recettes ne sont pas « négligeables », la « principale difficulté » est de réaliser les 21 milliards d’euros d’économies programmés. Bercy a, en effet, prévu que 40 % de l’effort du plan de 50 milliards d’économies pour 2015-2017 débouche dès la première année. Un objectif « très ambitieux », juge la cour. Et ce d’autant plus qu’« il apparaît que beaucoup d’économies seront identiques chaque année ou croissantes dans le temps, ce qui est peu compatible avec une concentration de leurs effets sur 2015 ».
Pour les magistrats, le respect des objectifs de dépenses en 2015, repose en fait sur l’hypothèse d’une « forte baisse de l’investissement local et sur la construction d’un budget très serré pour l’Etat ». Or sur le premier point, les collectivités locales pourraient moins réduire leurs investissements en augmentant le taux des impôts locaux et en empruntant plus, leurs conditions de financement s’étant améliorées, craint la Cour. Sur le second point, les économies nécessaires sur l’Etat supposent « de profondes réformes » (et non plus des coups de rabot) alors que les économies qui résultent de la démarche de modernisation de l’action publique (MAP) « sont encore loin d’être à la hauteur de cet enjeu ».
Au total, « le respect des objectifs de déficit public, effectif et structurel, pour 2015 sera, dans ces conditions, très difficile », juge la Cour des comptes. Elle rappelle en outre que l’effort va reposer sur des acteurs (collectivités locales, Unédic) « dont l’Etat ne maîtrise pas les dépenses ». De quoi promettre de nouvelles discussions orageuses entre Paris et Bruxelles dans les prochains mois.
Une baisse des prélèvements obligatoires limitée à 14 milliards de 2015 à 2017
Pressé par sa majorité et soucieux d’éviter un nouveau ras-le-bol fiscal, l’exécutif veut s’engager dans une baisse des prélèvements obligatoires. Celle-ci sera très limitée, souligne toutefois la Cour des comptes dans son rapport annuel sur les finances publiques. Les magistrats chiffre à 14 milliards d’euros la baisse nette sur trois ans des prélèvements obligatoires induite par les mesures nouvelles. Si le pacte de responsabilité et la montée en charge du CICE représentent un allègement de 35 milliards d’euros, la trajectoire budgétaire du gouvernement présentée en avril dernier prévoit « parallèlement une augmentation d’autres prélèvements pour un montant de 21 milliards ». Et de citer, par exemple, la hausse des taux de la contribution climat-énergie (2 milliards) et de la contribution au service public de l’électricité (3 milliards) ; le remplacement de la taxe poids lourds (1 milliard) ou encore la hausse des taux des impôts locaux (4 milliards).