>>> US After Hours

After Hours Summary: UCTT +17.8%, COLM +6.8%, ORIG +5.5%, CF +4.3%, LZB -8.3%, TEX -4.4% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: UCTT +17.8%, COLM +6.8%, ORIG +5.5%, HSTM +4.7%, CF +4.3%, NPSP +2.8%, NBR +2.4%, ADI +1.5%, HLF +1.5%, OII +0.5%, FLR +0.1%

Companies trading higher in after hours in reaction to news: CHTP +33.9% (announced FDA accelerated approval of NORTHERA (droxidopa) for the treatment of symptomatic NOH), CRDS +11.6% (filed patent infringement suits against Cisco, NetApp, and Quantum), HL +5.3% (reported record silver and gold reserves: Silver reserves increase by 13% and gold reserves by 190% over 12/31/12), ACT +1.8% (to cancel Q4 and FY13 earnings call previously scheduled for Thursday, February 20, 2014; expects to reiterate its standalone 2014 full year forecast in its earnings press release to be issued on February 20, 2014), PRAN +0.6% (held conference call to discuss REACH2HD trial results; downplayed concerns over efficacy findings)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: LZB -8.3%, ZIXI -8%, TEX -4.4%, KAR -3.7%, PBPB -2.7%, PNRA -2%, CYH -1.9%, SM -1.2%, GLRE -1.1%, AKAM -0.4%, TNH -0.3%, ACMP -0.2%

Companies trading lower in after hours in reaction to news: ADXS -9.2% (filed for $50 mln common stock offering), KMP -2.0% (commencing underwritten public offering of 6.9 mln common units representing limited partner interests), MWE -1.0% (filed for offering of $1.2 bln of common units representing limited partner interests in MarkWest Energy Partners), CL -0.5% (commented on Venezuelan currency developments, stating that 'if the SICAD rate were to remain at 11.70 during the quarter ending March 31, 2014, the Company estimates it would incur a one-time aftertax loss of approximately $180 million - $200 million, or $0.19 - $0.21 per share')

>>>Asian Update

Asian Market Update: China stocks rebound as money market rates fall; All eyes on tomorrow's flash PMI

***Economic Data*** - (JP) JAPAN DEC ALL INDUSTRY ACTIVITY INDEX M/M: -0.1% V +0.1%E - (JP) JAPAN DEC FINAL LEADING INDEX CI: 111.7 V 112.1 PRELIM; COINCIDENT INDEX: 111.7 V 111.7 PRELIM - (JP) JAPAN JAN NATIONWIDE DEPT STORE SALES Y/Y: 2.9% V 1.7% PRIOR; TOKYO DEPT STORE SALES: 5.4% V 3.6% PRIOR - (AU) AUSTRALIA Q4 WAGE COST INDEX Q/Q: 0.7% V 0.6%E; Y/Y: 2.6% V 2.5%E - (AU) AUSTRALIA JAN SKILLED VACANCIES M/M: 1.4% V 1.7% PRIOR - (AU) AUSTRALIA JAN WESTPAC LEADING INDEX M/M: -0.2% (largest decline since Oct 2011) v +0.1% PRIOR - (AU) AUSTRALIA DEC CONFERENCE BOARD LEADING INDEX M/M: 0.8% V 0.1%E (23-month high) - (KR) SOUTH KOREA Q4 SHORT-TERM EXTERNAL DEBT: $112.8B V $111.5B PRIOR - (CL) CHILE CENTRAL BANK CUTS OVERNIGHT RATE TARGET BY 25BPS TO 4.25%; AS EXPECTED

***Highlights/Observations/Insights*** - Australia earnings season rolls on with a H1 miss from Fortescue Metals coming after a strong set of numbers from BHP; Woodside Petroleum earnings and sales also slide; Both FMG and WPL affirmed FY14 production outlook. - Ukraine opposition emboldened by support from the West after meeting with Merkel; Clashes with security forces escalate into the night with about 20 killed and hundreds injured; Several deaths also reported from rising political tensions in Thailand. - Shanghai reverses yesterday's selloff, rising by over 1% going into the final hour of the session; Traders are relieved to find overnight shibor rates at multi-month lows despite the PBoC draining liquidity through repos in its first open market operation of the week yesterday; Sentiment should remain fickle, with expectations for HSBC Flash manufacturing PMI data on tap for tomorrow to show further contraction. - Nikkei pares outsized gains after yesterday's BOJ decision. A number of analysts saw the expansion in the fixed-rate scheme as a "warning shot" that the BOJ would not wait to assess the impact of sales tax hike before easing further, however influential economic adviser Hamada hinted that only a "serious" BOJ would produce meaningful economic growth. USD/JPY saw its session lows below 102.15 just after the Hamada comments.

***Fixed Income/Commodities/Currencies*** - (CN) Daily Shibor fixings: O/N: 2.4030% v 2.6800% prior (7th consecutive decline, lowest since May 14th) - JGB: (JP) Japan's MoF sells ¥1.10T in 1.6% (1.6% prior) 20-year JGBs; Avg yield: 1.459% v 1.538% prior; bid-to-cover: 3.67x v 5.32x prior - (AU) Australia MoF (AOFM) sells A$800M in 3.25% 2025 Bonds; avg yield: 4.2344%; bid-to-cover: 4.63x - (NZ) Fonterra Global Dairy Trade auction: Dairy Trade price index -1.2% from prior auction; First decline in 3 auctions and biggest decline in 7 auctions - USD/CNY: (CN) PBoC sets yuan mid point at 6.1103 v 6.1073 prior setting (Weakest setting since Jan 22nd)

***Speakers/Political/In the Papers*** - (CN) Follow-up: Jilin Trust said to have missed a payment on a trust tranche due today; Trust tranche in the amount of about CNY100M - Chinese press - (CN) Former World Bank chief economist Justin Lin: China economic slowdown largely due to external and cyclical factors; China can meet 7-8% GDP in the coming years - financial press - (CN) China Banking Regulatory Commission (CBRC) Chairman Shang: China should boost credit risk control on LGFV; overall risks for banks manageable - People's Daily - (CN) China National Development and Reform Commission (NDRC): China Jan crude oil production 17.77Mt, +0.4% y/y - financial press - (CN) China big four banks new loans CNY170B in Feb 1st-16th - financial press - (CN) Shanghai Stats Bureau: Shanghai Jan trade volume rose 16.5% y/y vs national average of 10.3% due to the start of Shanghai free trade zone - Shanghai Daily - (JP) Japan BOJ Gov Kuroda: Aims to put downward pressure on bond yields - addressing parliament - (JP) Japan PM Abe's Econ Adviser Hamada: Monetary policy can boost Japan growth if BOJ is serious on the policy - (UR) Follow-up: Ukraine's opposition leader Klitschko: Talks with Pres Yanukovych have failed to bring a solution and end violence in Kiev - financial press

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -0.8%, S&P/ASX +0.2%, Kospi -0.5%, Shanghai Composite +0.6%, Hang Seng flat, Mar S&P500 -0.1% at 1,835, Apr gold -0.6% at $1,316, Mar crude oil +0.3% at $102.71/brl

US markets: - COLM: Reports Q4 $1.05 v $0.89e, R$533M v $497Me; Raises quarterly dividend 12% to $0.28 from $0.25; +7.1% afterhours - CF: Reports Q4 $5.71 v $4.38e, R$1.33B v $1.24Be; +4.7% afterhours - NBR: Reports Q4 $0.26 adj v $0.20e, R$1.61B v $1.54Be; +2.6% afterhours - HLF: Reports Q4 $1.28 adj v $1.24e, R$1.27B v $1.24Be; +1.6% afterhours - FLR: Reports Q4 $1.01 v $0.98e, R$6.29B v $6.75Be; +0.1% afterhours - PNRA: Reports Q4 $1.96 v $1.95e, R$662M v $664Me; -1.4% afterhours - CYH: Reports Q4 $0.49 (ex items) v $0.69e, R$3.23B v $3.22Be; -1.9% afterhours - TEX: Reports Q4 $0.65 adj v $0.49e, R$1.81B v $1.81Be - filing; -3.5% afterhours - QCOM, IDCC: Follow-up: China National Development and Reform Commission (NDRC): Investigation into Qualcomm still at initial stage; Currently studying IDC's request to suspend the investigation - Q&A from news conference

Notable movers by sector: - Consumer Discretionary: Bega Cheese BGA.AU +4.9% (H1 results); Jiahua Stores Holdings 602.HK -2.5% (profit warning); Southern Cross Austereo SXL.AU -7.8% (H1 results) - Financials: Bank of Beijing 601169.CN +4.8% (cooperation with Xiaomi); WesFarmers Limited WES.AU -0.8% (H1 results); CITIC Securities 6030.HK -2.0% (trading system crash in today's session); Macau Legend Development 1680.HK -5.8% (FY13 results) - Materials: Fortescue Metals Group FMG.AU -1.3% (H1 results); Toll Holdings TOL.AU -5.0% (H1 results); Ausenco Ltd AAX.AU -8.5% (FY13 results); Mount Gibson Iron MGX.AU -15.4% (H1 results) - Energy: Woodside Petroleum WPL.AU -0.9% (FY13 results); China Shenhua Energy 1088.HK -1.9% (Jan coal output); Anhui Tianda Oil Pipe 839.HK +14.4% (positive profit alert) - Industrials: Hengxin Technology 1085.HK +47.5% (FY13 results); Ridley Corp RIC.AU +3.7% (H1 results); Cathay Pacific Airways 293.HK -2.0% (crew and passengers hurt in severe turbulence) - Technology: Canon Inc 7751.JP +2.2% (shares repurchase plan);

>>> Herbalife Ltd. Reports Q4 $1.28 adj v $1.24e, R$1.27B v $1.24Be- Guides Q1 $1.25-1.29 v $1.35e

Herbalife Ltd. Reports Q4 $1.28 adj v $1.24e, R$1.27B v $1.24Be- Guides Q1 $1.25-1.29 v $1.35e, Rev % v +12%e (gave prelim +19.8% on 2/3), volume % y/y - Raises FY14 guidance to $5.85-6.05 v $5.93e, Rev +7.5-9.5% y/y implies $ v $5.34Be, volume % y/y (prior $5.45-5.65, Rev 9.0-11.0% y/y, volume growth 6.5-8.5%) - Worldwide volume growth +13% y/y 2013 Annual Sales Leader Requalification: - By the end of January of each year, sales leaders are required to re-qualify to retain their sales leader status.

A record number of sales leaders were retained in 2013. The overall pool of sales leaders needing to re-qualify increased by approximately 10% compared to the prior year and we retained 10% more of them than in the prior year. While size of the group needing to re-qualify increased for the year, our overall retention rate remained fairly constant at 51.8%.

>>> US Close Dow-0,15% S&P+0,11% Nasdaq+0,68%

Closing Market Summary: Small Caps Lead Stocks Higher

Equity indices kicked off the abbreviated trading week on a relatively quiet note. Small caps finished in the lead (Russell 2000 +1.0%) while the S&P 500 added 0.1%.

The benchmark index saw a brief dip at the open, but the weakness was erased promptly thanks to the early strength of the health care sector (+0.9%). The group surged out of the gate after Actavis (ACT 201.47, +9.59) agreed to acquire Forest Laboratories (FRX 91.04, +19.65) for $25 billion. Biotechnology also factored into the sector's strength as the iShares Nasdaq Biotechnology ETF (IBB 264.24, +6.73) jumped 2.6%.

Outside of health care, gains in other sectors were much more subdued. Energy (+0.3%) was the second-best performer, aided by crude oil, which surged 2.2% to $102.52/bbl.

Similar to crude, precious metals enjoyed another strong session. Gold futures rose 0.4% to $1324.60/ozt while silver futures saw their ninth day of gains, spiking 2.2% to $21.91/ozt. This underpinned miners, sending the Market Vectors Gold Miners ETF (GDX 26.46, +0.11) higher by 0.4%.

Elsewhere among cyclical sectors, financials (+0.2%) outperformed while consumer discretionary (+0.1%) and technology (+0.1%) ended in-line. Also worth noting, the industrial sector (-0.2%) lagged due to the underperformance of transports.

The Dow Jones Transportation Average (-1.0%) fell below its 50-day moving average (7277) as 16 of its 20 components registered losses. Most notably, Kansas City Southern (KSU 91.67, -4.29) lost 4.5% after JP Morgan downgraded the stock to ‘Neutral' from ‘Overweight.'

Countercyclical groups were mixed as health care and utilities (+0.3%) outperformed while consumer staples (-0.7%) and telecom services (-0.9%) lagged. Dow component Coca-Cola (KO 37.47, -1.46) pressured the staples sector after reporting in-line earnings on below-consensus revenue.

Even though equities ended higher, there was some demand for volatility protection, which pushed the CBOE Volatility Index (VIX 13.87, +0.30) higher by 2.2%.

Treasuries ended near their best levels of the day with the 10-yr yield down four basis points at 2.71%.

Participation was a bit below average with only 709 million shares changing hands at the NYSE.

Among overseas news of note, the Bank of Japan made no changes to its interest rate or the purchase program; however, the bank did double its bank lending facility to JPY7 trillion. The yen weakened in reaction to the news, but erased about half of the decline during today's session. The dollar/yen pair traded near 102.35 at the New York close after notching an overnight high of 102.75.

Today's data was limited to three reports: • The February NAHB Housing Market Index fell to 46 from 56 while the consensus expected the reading to hold at 56. • The Empire Manufacturing Survey for February registered a reading of 4.5, which was down from the prior month's unrevised reading of 12.5. Economists polled by expected the survey to decline to 7.5. • Lastly, the December net long-term TIC flows report indicated a $45.9 billion outflow of foreign capital from U.S. denominated assets. This followed the prior month's $28.0 billion outflow. Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while January Housing Starts, Building Permits, and PPI will all be reported at 8:30 ET. Also of note, the latest minutes from the January FOMC meeting will cross the wires at 14:00 ET. • Nasdaq Composite +2.3% YTD • Russell 2000 -0.1% YTD • S&P 500 -0.4% YTD • Dow Jones Industrial Average -2.7% YTD

Read more: http://www.briefing.com/InPlayEq/InPlay/InPlay.htm#ixzz2ti7CVZMA

>>> Fed is voting on rules for regulation and stress tests of foreign bank branc

Fed is voting on rules for regulation and stress tests of foreign bank branches in the US, rules would apply to around 100 entities with US arms - press
- Foreign banks with more than $50B in US non-branch assets would face high capital requirements, would need to meet US capital rules, form US holding companies, engage in stress tests. 
- Rules would not apply to insurers or other non-bank entities.

>>> TESCO US: White Eagle Partners (2% holder) Issues Open Letter to chariman

Tesco Corporation White Eagle Partners (2% holder) Issues Open Letter to Chairman of Tesco: suggests returning excess cash to shareholders and then seeking sale of the Company
- White Eagle Partners, LLC, a shareholder of Tesco Corporation, released an open letter it sent to Norman Robertson, Chairman of the Company, asking the Company's board of directors and management to take specific steps to unlock shareholder value. In the letter, White Eagle expressed its belief that the Company can create value by (i) returning up to $380 million in excess cash to the shareholders, (ii) engaging in a formal, reasonable and public process to sell the Company, and (iii) increasing the management teams' share options to encourage greater alignment of interests.
{TESO US Equity GIP<GO>}

FT : Vinci acts global but thinks local

Vinci acts global but thinks local

Vinci Construction Site Ahead Of Earnings©Bloomberg
Vinci is seeking to take over Cuzco’s new airport in Peru, motorway concessions in Colombia as well as regional airports in Asia and Greece as Europe’s largest construction and concessions group by revenue extends its tentacles abroad.
But with 60 per cent of the group’s revenue still coming from France, chief executive Xavier Huillard explains – over lunch in chic Parisian restaurant Ledoyen – how much of the group’s fortunes hinged on French politics.
Despite the global reach of Vinci, which employs almost 200,000 people in 100 countries, it is likely to be hit by the French municipal elections next month, leading to a drop-off in activity this year, particularly in its lucrative motorway toll road business, Mr Huillard said.

“Globally speaking it is tough in France, but during the phase of local elections it is even tougher. The mayor does not want to potentially be negatively impacted [in his race by any controversial decisions],” said Mr Huillard.
There was a silver lining though. “The year after [local elections] you benefit from the fact that local politicians want to show their electors that they are very active so they launch many projects,” he said.
National politics in France was going to be even more important over the coming years for Vinci, which relies on public-private partnerships for its bigger projects.
“In most of our European markets, in the next 2-3 years, growth will recover,” he said. “But in France it could be a little more complicated . . . It depends on what the president of the republic is willing to do now.”
Mr Huillard is referring to the change of political tack last month from Mr Hollande, who edged to the right announcing a “responsibility pact” with business to cut taxes, public spending and red tape to boost growth.
French business leaders are hopeful that this could be a turning point. “If he [Hollande] really does what he told us he would do, we could start seeing some positive signs of small recovery in 2015,” he said.

Vinci has been struck hard by the drop off in construction activity in Europe during the sovereign debt crisis and has also suffered from the weak margins available in its construction business, which can be as little as 1-4 per cent.
Because of this the company has been attempting to push abroad into higher growth areas, and has also been attempting to move up the value chain and take on bigger and more complex projects.
It is constructing one of its most complex projects – the gallery to house billionaire Bernard Arnault’s modern art collection by architect Frank Gehry – as well as Europe’s largest concession rail project – the €7.8bn Tours to Bordeaux high-speed rail line.
Attempting to counter the construction slowdown, the group has also been developing its airport business, last year buying Portuguese airport operator ANA-Aeroportos de Portugal for €3.1bn and raising its stake in Aéroports de Paris to 8 per cent.
A rise in passenger traffic helped them report a healthy set of quarterly numbers this month, beating expectations with net profit up 2.3 per cent to €2bn last year on a 4.4 per cent rise in revenue to €40.3bn. Its shares are up 8 per cent this year.
Changes in the German energy sector could be a future growth area for the company as well, said Mr Huillard, managing the new renewable energy produced in the north that needs to be transported south to supply the industrial heartlands.
“The country will have to change dramatically their National Grid, investing dozens of billions of euros, in the coming 10-15 years,” he said. Vinci has bought Germany’s EVT, a power engineering group, to take advantage of this theme.
Lastly the group is edging away from France in looking for growth.
“We still have to keep a very strong footprint in our home country,” he said. [But] one day I would be happy if we had 40 per cent [of the business] in France and 60 per cent out of France.”

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: ASTC -21.8%, IHG -2.9%, KOOL -2.3%, WM -2.1%, KO -1.5%, DAKT -1.1%, (light volume).

Select oil/gas stocks trading lower: SDRL -3% (still checking), RIG -1% (recommends dividend of $3.00 per share and board reduced to 11), .

Brazil related names showing early weakness: EBR -6.0%, CPL -5.9%, ELP -4.2%, SBS -3.9%, GGB -3.6%, GFA -3.6%, SID -3.5%, BSBR -2.6%, ERJ -2.5%, PBR -1.9%, FBR -1.5%.

Other news: LIVE -9.2% (files $50 mln mixed securities shelf offering; files for 600k share common stock offering by selling shareholders), TTM -1.5% (still checking), NVO -1.5% (still checking).

Analyst comments: GALE -5.9% (downgraded to Sell from Buy at Cantor), KSU -1% (downgraded to Neutral from Overweight at JPMorgan), MTZ -0.5% (downgraded to Neutral at DA Davidson)