>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: WTW -22.2%, PRSS -17.2%
(also downgraded to Hold from Buy at Cantor Fitzgerald), GNC -16.2%, TRLA
-14.7% (also announces the appointment of Kira Wampler as the co's Chief
Marketing Officer ), SAAS -10.4%, (light volume), STMP -8.8%, OCLS -6.8%,
(light volume), MOVE -6%, A -5.6%, MNDL -5.5% (thinly traded), EFX -5.4%,
OXM -5.3% (light volume), SVM -4.2%, (light volume), VFC -4.2%, ALNY
-3.8%, HWAY -3.6% (light volume), CLD -3.3%, (light volume), ELLI -2.4%,
GSB -2.3% (light volume), WOOF -2.3% (light volume), CGNX -2.3% (light
volume), CHGG -1.8%, RGC -1.6%, AIG -1.2% (also announced buyback and
raised dividend), CIDM -1%.

M&A news: JOSB -3.5% (to acquire Eddie Bauer; purchase price based on
enterprise value of $825 mln; expected to be immediately accretive),
MW -7.2% (following JOSB news).

Other news: NNA -8.4% (announces public offering of 12 mln shares of
common stock), VSI -7.1% (following GNC results), QTWW -3.1% (announces
proposed public offering of common stock), NLY -3% (discloses executive
departures), NTRI -2.7% (following WTW results), Z -2.2% (following TRLA /
MOVE results), TSLA -1.3% (Tesla Motors investigating cause of Toronto
Model S fire, according to reports), ISRG -1.3% (disclosed Ernst & Young
is declining to stand for re-election as auditors ), SNE -1.2% (S&P
lowered long-term ratings on Sony Corp. to 'BBB-'; Outlook Negative), ILMN
-1.1% (following A results), SDRL -0.8% (still checking), VOD -0.8% (India
has raised $10 bln from spectrum auction which may result in competition
to VOD), CTXS -0.2% (following late strength on M&A speculation).

Analyst comments: ARO -1.6% (downgraded to Mkt Perform from Outperform at
BMO Capital Mkts), MAT -0.7% (downgraded to Hold from Buy at Argus)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: LOGM +20.2% (also upgraded to Buy
from Hold at Needham), JCOM +19.6% (also increased dividend), CRAY +10.8%,
SANW +10% (ticking higher), RATE +9.2%, FALC +7.4% (thinly traded), CLF
+5.9% (also issues open letter to shareholders says 'Board of Directors
and management team have attempted to maintain a constructive dialogue
with Casablanca'), JE +2.6% (light volume), TRW +2.4%, JOEZ +2.3% (light
volume), LLNW +1.9%, BRCD +1.8%, KRFT +1.1% (also approve the transition
of Executive Chairman John Cahill to Non-Executive Chairman of Kraft's
Board of Directors on March 8, 2014).

M&A related: LCAV +26.1% (LCA Vision to be acquired by PhotoMedex for
$5.37 per share in cash; expected to be accretive to PhotoMedex's cash EPS
in 2014, excluding transaction-related items), KOOL +8.7% (Thermogenesis
receives stockholder approval at a special meeting of the stockholders for
the acquisition of TotipotentRX through a merger into
ThermoGenesis), ACO +5.2% ( Minerals has made a $42/share cash bid for
ACO, according to reports ), ARNA +2.2% (speculation of GSK interest --
D+F116aily Mail).

Metals/mining stocks trading higher: IAG +5%, AG +4%, PAAS +3.7%, CDE
+2.9%, AUY +2.8%, GG +2.7%, GDX +2.4%, HL +2.1%, NEM +2%, BBL +1.9%, SLW
+1.9%, BHP +1.8%, GOLD +1.4%, GFI +1.3%, SLV +1.3%, GLD +1%.

Other news: MHR +4.8% (announces gas discovery in first Utica Shale Well
on Stalder Pad), WLT +4.6% (following CLF results), RMTI +3.8% (continued
strength), YRCW +3% (successfully refinances over $1.1 billion in senior
credit facilities), OXY +3% (to separate its California Business, creating
two independent, publicly traded energy companies), CLSN +2.4% (attributed
to positive blog mention; files for 194,986 shares common stock offering
issuable upon exercise of warrant held by Hercules Technology Growth
Capital received in connection with a term loan to celsion corporation),
AKAM +2.2% (prices private offering of $600 mln aggregate principal amount
of its convertible senior notes due 2019; offering was upsized from the
previously announced $500 mln aggregate principal amount of notes), DDD
+1.9% (still checking), SPWR +1.8% ( announces a three-year agreement to
offer high efficiency SunPower solar power systems at Meritage Homes
communities nationwide), CIEN +0.9% (Ciena announces strategic global
agreement with Ericsson (ERIC); companies to collaborate on accelerating
adoption of SDN-based open architectures), TWTR +0.7% (lifting premarket
following conference presentation; also mentioned positively in blog with
upcoming lock-up expiration).

Analyst comments: DISCA +4.7% (upgraded to Buy from Neutral at Guggenheim
), PQ +4.5% (upgraded to Outperform at FBR Capital; tgt raised to $8),
SSYS +1.5% (upgraded to Market Perform from Underperform at William
Blair), HOT +0.8% (upgraded to Buy from Neutral at UBS), AAPL +0.2%
(target raised to $590 from $575 at BofA/Merrill)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: 

LCAV +26.1%, JCOM +19.6%, LOGM +18%, CRAY +10.8%, SANW +10%, RATE +9.2%, JOSB +7.4%, FALC +7.4%, CLF +5.9%, ACO +5.2%, YRCW +3%, AUY +2.8%, GG +2.7%, JE +2.6%, CLSN +2.4%, JOEZ +2.3%, ARNA +2.2%, NEM +2%, BBRY +1.9%, DDD +1.9%, BBL +1.9%, SLW +1.9%, LLNW +1.9%, SPWR +1.8%, BHP +1.8%, BRCD +1.8%, GOLD +1.4%, SLV +1.3%, KRFT +1.1%, CIDM +1%

Gapping down: 

WTW -18.2%, PRSS -16.4%, TRLA -14.7%, GNC -13.2%, SAAS-10.4%, MW -9.7%, STMP -8.8%, VSI -8.5%, NNA -8.4%, MOVE -6%, A -5.6%, MNDL -5.5%, OXM -5.3%, EFX -5.3%, SVM -4.2%, ALNY -3.8%, HWAY -3.6%, QTWW -3.1%, NLY -3%, NTRI -2.7%, ELLI -2.4%, GSB -2.3%, WOOF -2.3%, CGNX -2.3%, Z -2.2%, CHGG -1.8%, RGC -1.6%, TSLA -1.3%, SNE -1.2%, ILMN -1.1%

(BFW) *SONY CUT TO BBB- AT S&P

+------------------------------------------------------------------------------+

BN 02/14 10:19 *SONY CUT TO BBB- AT S&P

+------------------------------------------------------------------------------+

*SONY CUT TO BBB- AT S&P 2014-02-14 10:20:30.95 GMT

--LEVENT KUCUKREISOGLU

-0- Feb/14/2014 10:20 GMT

(BFW) SocGen’s Better Momentum Than BNP May Attrack Investors, UBS

+------------------------------------------------------------------------------+

SocGen’s Better Momentum Than BNP May Attrack Investors, UBS 2014-02-14 09:12:15.582 GMT

By Chris Malpass Feb. 14 (Bloomberg) -- Societe Generale raised to buy from neutral, BNP Paribas cut to neutral to reflect shift in French banking dynamics, UBS says in note today. * SocGen’s better earnings momentum, cost control, lower valuation to increasingly attract investors * SocGen reached “significant” milestones in 4Q on capital, leverage, funding and asset quality * SocGen, BNP focus to switch to profit now that balance sheets sorted * Market underestimating SocGen’s potential profit boost from tax-loss carry forwards * NOTE: SocGen up as much as 1.6% today in 9th day of gains, longest run since 10-day streak in Jan. 2012 EARLIER: BNP Paribas Cut to Neutral at UBS on Weak 4Q, Soft Targets

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

To contact the reporter on this story: Chris Malpass in Berlin at +49-30-70010-6234 or cmalpass@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

>>> BlackRock sees 'aggressive selling' out of equities

BlackRock sees 'aggressive selling' out of equities

BlackRock's global chief investment strategist said the company has “seen aggressive selling” out of equity funds and into bond funds as nervy investors have been switching allocations.

This was reflected in global exchange-traded fund flows for the start of this month, with equity ETFs seeing outflows of $20.3 billion during the week to February 7, while fixed income ETFs experienced inflows of $15.8 billion, according to Deutsche Bank's weekly ETF report.

The moves come after market volatility hit a 13-month high at the start of the month, according to a report from BlackRock. The Chicago Board Options Exchange Market Volatility Index – or Vix index – which measures the volatility of the S&P 500, hit 21.44 on February 3, 2014, its highest closing level since December 28, 2012, when it closed at 22.72.

The asset manager's global chief investment strategist Russ Koesterich said: “Sentiment is more uneven than it was at the end of 2013 but it is important to put all of this in perspective. While volatility is higher now than it was last year, it has merely reverted to its long-term average.”

The increased interest in fixed income also comes amid a slow rise in bond yields after Janet Yellen, chairwoman of the Federal Reserve, said the central bank's tapering programme will continue. The tapering programme was first announced in December.

Joost van Leenders, chief economist for the multi-asset group at BNP Paribas, said he is now overweight in European high yield corporate bonds and emerging market debt in US dollars.

Koesterich said that “markets will remain more volatile than they were in 2013” but stressed that BlackRock believes stocks offer better value than bonds in the current market.

He added: “We do expect equity gains will be more muted this year than last year and the ride will be rockier, but we would also suggest that periods of weakness like we have seen over the past couple of weeks provide opportunities to selectively add to equity exposures while trimming bond holdings.”

Responding to BlackRock's report, Philippa Gee, managing director of Philippa Gee Wealth Management, said: “Many investors have become scared of the increased volatility in markets and as a result have scaled back their plans to invest. There is also the concern of where they should invest their money as risk exists across most asset classes, even gold last year.

“I also find that some investors are turning to property instead of other assets as they wish to hold something that is visible and which, they think, involves less risk. The concern is that these reactions to short-term issues can have profoundly long-term consequences for investors.”

(BFW) *THYSSENKRUPP DOESN’T PLAN ANOTHER CAPITAL INCREASE: KERKHOFF

+------------------------------------------------------------------------------+

BN 02/14 08:16 *THYSSENKRUPP DOESN'T PLAN ANOTHER CAPITAL INCREASE: KERKHOFF BN 02/14 08:14 *THYSSENKRUPP CFO GUIDO KERKHOFF COMMENTS ON CALL WITH REPORTERS BN 02/14 08:14 *THYSSENKRUPP:1Q BRAZIL PLANT ADJ. EBIT LOSS EXCEEDS STEEL AM.

+------------------------------------------------------------------------------+

*THYSSENKRUPP DOESN’T PLAN ANOTHER CAPITAL INCREASE: KERKHOFF 2014-02-14 08:18:54.758 GMT

--JAMES LUDDEN

-0- Feb/14/2014 08:18 GMT

(BofA-ML) Flow Show - Equity Inflows : $11.5b Bonds Inflows: $4.7b

Bottom-line: as Flow Show argued last week big capitulation out of stocks into US Treasuries did mark end of Jan/Feb correction for global equities (+6% from lows); ACWI troughed one day after the massive $10bn redemptions from equities last Monday (2/3/14)…

…while this week’s redemptions not quite large enough to trigger contrarian “buy” signal from EM Flow Trading Rule, the record-breaking 16 consecutive weeks of EM equity outflows are very meaningful and help to explain why EEM has participated in the short-covering rally in risk assets (Chart 1).
Need $5-7bn outflows from EM equity funds next week (Chart 2) to confirm further bounce in EM and a period of EM outperformance forthcoming; buy-signal on 6/27/13 followed by 350bps of EEM outperformance in subsequent 3 months.

***Asset Class Flows
- Equities: $11.5bn inflows ($8.7bn via ETF’s)
- Bonds: $4.7bn inflows (Table 1)
- Commodities: 14 straight weeks of redemptions

***Equity Flows
- $3.1n outflows from EM equity funds (16 straight weeks of outflows = longest outflow streak on record
- 4-week outflows from EM equities are 2.3% of AUM = just shy of triggering a contrarian “buy” signal (3.0% is threshold)
- “Buy” signal is still possible if we see $5-7bn redemptions next week. Last buysignal on 6/27/13 followed by 350bps of EEM outperformance in subsequent 3 months
- Europe: $4.0bn inflows (33 straight weeks of inflows)
- US: $7bn inflows (majority via ETF’s)
- Japan: 8 straight weeks of inflows

***Fixed Income Flows
- 20 straight weeks of outflows from EM debt funds (mostly via LDM)
- 6 straight weeks of outflows from TIPS funds
- Healthy $1.6bn inflows to Govt/Tsy funds (after monster inflows last week)
- First inflows to HY bond funds in 3 weeks ($1.8bn)
- 86 straight weeks of inflows to floating-rate debt (Table 2)
- 8 straight weeks of inflows to IG bond funds ($2.5bn)
- 2 straight weeks of MBS inflows

>>> Tesla Motors: Business Insider reporting Tesla car 'caught on fire while sit

Tesla Motors: Business Insider reporting Tesla car 'caught on fire while sitting in a Toronto garage this month'

Quote from Tesla in the article: "Dealing with occasional fires is something that every car company has to do, as no vehicle is completely fireproof under all circumstances. What matters is the number of such incidents per car, and it is worth noting that gasoline car companies experience an average of five to ten times more fires per car than Tesla. Also extremely important is the fact that there has never been a serious injury or death in a Model S as a result of a fire or any other cause. The Model S continues to have the best safety track record of any vehicle in the world. In this particular case, we don't yet know the precise cause, but have definitively determined that it did not originate in the battery, the charging system, the adapter or the electrical receptacle, as these components were untouched by the fire."

>>> What to look at today : - 14/02/2014

US Market closed Higher with volume still lower that average...VIX @ 14.14 -1.12%...S&P hold its 50d MA...
China y/y CPI tops estimates, remaining at 2.5% in Jan and matching an 8- month low. Incidentally, m/m rate predictably accelerated in the month leading to Lunar New Year holiday, rising by an 11-month high rate of 1.0%. Food inflation once again outpaced non-food inflation, rising 2.4% m/m and 3.7% y/y vs 0.3% and 1.9% non-food. Separately, shadow banking worries simmered a littl hotter after China press reported as many as 6 trust firms may have up to a CNY5B exposure to the troubled Shanxi Liansheng Energy. Analysts have previously expressed some concern that the turmoil related to ICBC's China Credit Trust products was the "canary in the coal mine", as coal prices fall and investment dries us.

Eur$ 1.3702 S&P Fut. -0.18% European Fut +0.07%

-Emerging Market Stock Funds Have 16th Week of Outflows: Citi


Keep an eye on :
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- EDF FP : EDF ‘Overwhelmed’ by Nuclear Reactor Upkeep Operations, ASN Says
- ETL FP : Eutelsat Confirms Outlook as First-Half Net Drops 18%
- GSZ FP : GDF Says Long-Term Gas Deals Must Be More Flexible to Survive
- KVAER NO : Kvaerner 4Q Sales Rise More Than Est.; Declares NK0.61/Shr Div
- MB IM : Bollore to Raise Mediobanca Stake as No Partner Found: Sole
- MUV2 GY : Munich Re Forecasts 16 Percent Islamic Family Insurance Growth
- ORI SS : Oriflame 4Q Net Misses Est.; Proposes to Cut Dividend
- PUB FP : Publicis May Distribute Funds to Sharholders, Levy Tells Figaro
- SCHP VX : Schindler Sees Rev. Up 6%-8% in Local FX After 2013 Sales Rise
- TKA GY : ThyssenKrupp Reports EU247m Profit, Beating Analysts’ Estimates
- UL FP : Unibail-Rodamco Enters Deal With CPPIB on Shopping Center
- UNr1V FH : Uponor 4Q Loss Wider Than Ests.; Keeps Dividend Unchanged