>>> US Early premarket gappers

Early premarket gappers

Gapping up: MODN +27.7%, ISSC +14.8%, AXLL +7.6%, INVN +7.3%, MERU +7.1%, HUN +6.6%, SYUT +5.1%, SLCA +4.2%, TARO +3.7%, RICK +3.5%, IAG +3.2%, CAP +3.1%, PRI +2.9%, GTAT +2.7%, IAG +2.4%, GOLD +2.2%, CSIQ +2.2%, GG +2.1%, REGN +2%, BHP +1.9%, HOLX +1.8%, SAP +1.7%, YOD +1.4%, CYS +1.3%, FTK +1.3%, RIO +1.1%, RLD +0.9%, SLV +0.8%, BBL +0.7%, MT +0.7%, GLD +0.7%

Gapping down: BLOX -31.6%, RAX -11.4%, BNNY -9.2%, AMKR -7.9%, QLYS -7.3%, WPX -7%, NMM -6.2%, BCS -4.9%, CPST -3.7%, MGNX -3.3%, KS -3.2%, X -3.1%, NUAN -2.9%, GEO -2.7%, PXD -2.6%, IRWD -2.5%, WBMD -2.5%, MAS -2.1%, STON -2%, URBN -1.7%, ATO -1.2%

(GS) European Autos : Rating Changes

PEUGEOUT: u/g to Conv Buy from Buy, pt to 14.00 from 12.10
DAIMLER: reit Conv Buy, pt to 83 from 78
FAURECIA: reit Conv Buy, to 37 from 38.50
BMW: u/g to Buy from Neutral, pt 92 from 93
SCANIA: u/ to Neutral from Sell, pt to 132 from 126

VW: d/g to Neutral from Buy, pt to 202 from 238
GKN: d/g to Sell from Neutral, pt to 330 from 370
PIRELLI: d/g to Sell from Neutral, pt 10.60 from 12.00


Overall, we now expect 2014-16 total European light vehicle volumes to grow 3.9%, 6.9% and 4.2% (previously 3.8%, 4.0% and 4.2%).

Western European automotive car sales growth forecasts to 6.4%, 5.8% and 3.1% in 2014-16 (previously 3.2%, 4.7% and 2.9 %),

Eastern Europe (including Turkey) we lower our 2014 light vehicle sales growth forecasts to flat (from +5.0%) for Russia to -5.0% (from +4.0%).

Goldman Sachs Global Investment Research

Europe: Automobiles

Published February 11, 2014

One step forward (WE), one step back (EM); remains Attractive

Upgrading our WE light vehicle growth forecast to 6.4% in 2014… We upgrade our Western European automotive car sales growth forecasts to 6.4%, 5.8% and 3.1% in 2014-16 (previously 3.2%, 4.7% and 2.9 %), primarily on significantly improved European consumer confidence, historically a good leading indicator for car sales. A pick-up in volumes should also provide a supportive environment for a recovery in pricing; we model a 250 bp improvement in net pricing over 2014-16.

…but offset by weaker outlook for EE and Russia To reflect increased economic uncertainty and resulting risks to consumer spending, we lower our 2014 light vehicle sales growth forecasts to flat (from +5.0%) for Eastern Europe (including Turkey) and -5.0% (from +4.0%) for Russia. Overall, we now expect 2014-16 total European light vehicle volumes to grow 3.9%, 6.9% and 4.2% (previously 3.8%, 4.0% and 4.2%).

Updating forecasts for foreign exchange headwinds Since the beginning of the year, we have seen significant foreign exchange moves, particularly from the devaluation of various emerging market currencies. A volume-weighted basket of emerging market currencies has moved -1.5% relative to the euro since the beginning of the year. For our OEM coverage, we now estimate a total of €4.25 bn FX headwinds to profits over 2014-16, 14% of total 2013E EBIT.

Peugeot added to CL Buy; Daimler and Faurecia remain CL Buys On the back of our more positive view on Western Europe and more clarity around the intended €3 bn capital raising, we add Peugeot (Buy) to our Conviction List with a new €14 12-month price target. We continue to prefer Daimler among European OEMs (new 12-month price target €83) as returns continue to expand (140 bp over 2013-18E) and Faurecia among suppliers (new 12-month price target €37).

Upgrade BMW to Buy and Scania to Neutral; downgrade VW to Neutral, and GKN, Pirelli to Sell We upgrade BMW to Buy (new 12m price target of €92) and Scania to Neutral (new 12m price target of Skr132). Concurrently, we lower our ratings on VW to Neutral (new 12m price target of €202), GKN to Sell (new 12m price target of 330p) and Pirelli to Sell (new 12m price target of €10.6) owing to above-average exposure to emerging market FX and risks.

FT : European telecoms sector eyes €100bn cuts

European telecoms sector eyes €100bn cuts

As much as €100bn needs to be cut from costs to return the European telecoms sector to sustainable growth given forecasts of a fifth consecutive revenue decline in 2014.
European telecoms operators have been “paralysed” by the complexity of the challenge in driving substantial operational change in a fiercely competitive market, according to AlixPartners, the business advisory group.

Telecoms operators need to go beyond existing plans for incremental cost-cutting and look for more meaningful cost reduction to set the conditions for revenue growth, it added.
Ahead of the annual Mobile World Congress in Barcelona next week, AlixPartners interviewed senior telecoms executives across France, Germany, Italy and the UK as part of its study.
About 60 per cent of executives said they would like to adopt “radical” cost-cutting methods but more than two-thirds admitted that their company approach to cost reduction had not changed over the past five years.
AlixPartners found that companies have failed to deliver significant transformation despite the pressure on their revenues, which has forced a number of companies into asset sales and forced equity raisings in the past two years.
The European telecoms sector has been hard hit by a combination of regulated price cuts and the economic downturn, which has forced sales lower even as they have needed to invest in next generation networks capable of 4G and fast broadband services.
Eric Benedict, managing director at AlixPartners, said: “[This] sheds light on the immense challenges facing European telecoms operators, who are today the poor relatives of their North American cousins. In order to stem the tide of revenue decline, they must admit the difficult truth that their business models need to be fundamentally redesigned and further simplified.”
Low financial returns and the mix of structural, strategic and regulatory pressures will contribute to increased M&A activity, according to the study, with major deals already in the pipeline including Vodafone’s attempt to buy Ono in Spain for up to €7bn. Vodafone has made a bid for the group ahead of a board meeting later this week.
More than half said that spending on infrastructure investment such as next-generation 4G technology would increase, but only a third expected “healthy returns” on invested capital in mobile and fixed data services.
Almost all planned a cost reduction project for the next 12 to 18 months, with the main areas in their network upgrades, product reviews and strategic reviews of countries.

(BFW) Telefonica CEO Opposes Potential Tim Brasil-GVT Deal: Sole

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

Telefonica CEO Opposes Potential Tim Brasil-GVT Deal: Sole 2014-02-11 07:03:12.687 GMT

By Daniele Lepido Feb. 11 (Bloomberg) -- Telefonica CEO Alierta doesn’t favor merger with Vivendi’s Brazilian fiber network asset, Il Sole 24 Ore reports without citing anyone. * Tim Brasil breakup hypothesis is fading since consortium bid, possibly led by Telefonica and America Movil, offered no more than EU6b for 67% stake: Sole * NOTE: Telecom Italia not in talks over GVT deal, spokesman says NSN N0MND76KLVTO <GO> * NOTE: Vivendi has no knowledge of talks on GVT with Telecom Italia NSN N0MPMN6S9736 <GO>

Link to Company News:AMXL MM <Equity> CN <GO> Link to Company News:TEF SM <Equity> CN <GO> Link to Company News:TIT IM <Equity> CN <GO> Link to Company News:TIMP3 BZ <Equity> CN <GO> Link to Company News:VIV FP <Equity> CN <GO>

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

--Editor: Jerrold Colten

To contact the reporter on this story: Daniele Lepido in Milan at +39-02-8064-4266 or dlepido1@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at +49-30-70010-6215 or kwong11@bloomberg.net

>>> What to look at today : 11/02/2014

US Market closed higher, investors are waiting for Yellen Testimony today (Humphrey-Hawkins testimony on monetary policy) ...trading volume wee light @ 640mil shares...VIX @ 15.26 -0.2%...Healthcare & utilities were best performers as Oil & industrials were lagging...Asian markets were also quiet but higher waiting for Yellen testimony too, weaker JPY helped Nikkei to closed higher +1.77% ...Shanghai +0.77%...

Eur$ 1.3660 S&P Fut+0.21% European Futures : +0.53%

Keep an eye on :
- A2A IM : A2A controlling shareholders hire Mittel Advisory to price 5% stake
- AIR FP : Airbus to Start Singapore-Based Financial Hub to Support Asean, `Hopes' to Announce Order for A380 at Singapore This Week
- ALO FP : To supply 5 Haliade 150-6 MW offshore wind turbines to Deepwater Winds for offshore Rhode Island farm
- ATLN VX : Actelion FY Core EPS CHF4.41m; Raises 2014 Forecast, Expects Opsumit Peak Sales to Exceed Tracleer
- ARCAD NA : Arcadis 4Q Ebita Falls, Sees Revenue and Profit Increase in 2014
- BAS GY : BASF to Reduce German Investments, Bock Writes in Frankfurter
- BMW GY : BMW Says its Has 65,000 ‘Hand Raisers’ for Plug-In Models: D
- BSLN SW : Basilea 2013 Net Loss Narrows on Lower Operating Expenses
- BPE IM : Pop Emilia in Talks to Sell Part of Souring Loans
- CON GY : Continental AG Suspends Head of Brazil, Argentine Activities
- EDP PL : Iberdrola Reduces Indirect Stake in EDP (from 6,5% to 2%) for E430m, to Cut Further
- MEO GY : Metro 1Q Ebit Ex-Items EU1.07b, Est. EU1.08b
- ML FP : Michelin 2013 Op Income EU2.23b, Est. EU2.27b; Div. Raised
- NEX FP : Nexans Sees Op. Margin Increasing in 2014; Yr Op. Margin Beats
- OPERA NO : Opera Software 4Q Sales Rise 48%; 270m Opera Mobile Users End 4Q
- OR FP : L’Oreal Agrees to Buy 48.5 Million of Own Shares From Nestle, L’Oreal Pays Nestle EU124.48/Shr; Nestle to Buy Back Shrs
- OR FP : L’Oreal 4Q LFL Sales Growth Beats Ests.; Confident on 2014,CEO Says Profitability at Record Level in 2013
- ORCO FP : Orco Property Says Gamala Holds 30.72% as of Feb. 3
- PAH3 GY : Porsche Says Prepared to Build More Than 50,000 Macans Yearly, Sure to Exceed 200,000 Vehicle Sales in 2015, CEO Says
- PAH3 GY : Judge in Porsche Suit Says ‘High Risk’ of Investors Losing
- UG FP : Dongfeng Motor Falls in Hong Kong After Peugeot Talks
- SPM IM : PREVIEW Saipem 4Q: Focus on 2H Order Intake, Legacy Margins
- TEF SM : Spanish Watchdog Fines Telefonica For ‘Serious’ Breaches
- TOM2 NA : TomTom Says 4Q Sales Decline to EU268m, Ebit Margin Slumps
- UHR VX : Swatch CEO Sees EU Worker Movement Reassessment: Handelsblatt
- VIV FP : Canal Plus Can Take Stake in Mediaserv, French Regulator Says
- VOD LN : Vodafone Could Spend $30B-40B on Acquisitions
- VOE AV : Voestalpine 9M Net Falls 5%; Fiscal FY14 Ebitda Seen Falling
- WG/ LN : John Wood Group shares gain on vague bid chatter

>>> Brokers Upgrades & Downgrades

>>> Up
*BMW RAISED TO BUY VS NEUTRAL AT GOLDMAN
*BOLIDEN RAISED TO NEUTRAL VS UNDERPERFORM AT BOFAML
*FIRSTGROUP RAISED TO OVERWEIGHT AT MORGAN STANLEY
*ICAP RAISED TO NEUTRAL VS SELL AT GOLDMAN
*SCANIA RAISED TO NEUTRAL VS SELL AT GOLDMAN

>>> Down
*ALCATEL CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*GKN CUT TO SELL VS NEUTRAL AT GOLDMAN
*NATIONAL EXPRESS CUT TO EQUALWEIGHT AT MORGAN STANLEY
*VOLKSWAGEN (PFD) CUT TO NEUTRAL VS BUY AT GOLDMAN

>>> PT Change
*ARSEUS PT RAISED TO EU36 FROM EU30 AT ING
*Buzzi Unicem PT Raised to EU14 vs EU12 at Citi
*TOD’S PT CUT TO EU91 VS EU95 AT SOCGEN; KEPT AT SELL

>>> Initiation
*AFRICAN BANK INVESTMENTS RATED NEW SELL AT GOLDMAN
*CNH Industrial PT Cut to EU8.5 vs EU9.4 at Goldman
*EDP ENERGIAS RATED NEW HOLD AT DEUTSCHE BANK
*PANDORA RATED NEW BUY AT CITI, PT DKK368

>>> Call
>> Stock
*PEUGEOT ADDED TO CONVICTION BUY LIST AT GOLDMAN SACHS
*PUBLICIS ADDED TO CREDIT SUISSE’S EUROPE FOCUS LIST
*BUZZI UNICEM REMOVED FROM CONVICTION BUY AT GOLDMAN; STILL BUY

>>> John Wood Group shares gain on vague bid chatter

John Wood Group shares gain on vague bid chatter 

John Wood Group, a listed UK-based oilfield services company, was the subject of vague bid talk yesterday, 10 February, The Daily Telegraph reported. The newspaper did not cite a source for the speculation.

John Wood Group's share price reached 675p yesterday afternoon in London before closing 16p up on the day at 669p. The company’s market capitalisation currently stands at GBP 2.50bn (EUR 3bn).

Daily Telegraph

>>> Canada Pension Plan starts ‘in-house hedge fund’

Canada Pension Plan Investment Board is launching an “in-house hedge fund” in its London office with the hire of fund management veteran Dureka Carrasquillo from Tranberg Capital Management.

Alain Carrier, head of Europe for CPPIB, said the fund wanted to hire a team of “four to five professionals” that would build a long/short portfolio targeted at Europe, the Middle East and Africa.
Although a separate person familiar with the matter said the new team would, in effect, act as an “in-house hedge fund”, Carrier played down the use of such terminology, instead stressing that it was part of the firm’s wider strategy to invest in public markets.
Although various pension funds have built direct capability to do deals for private equity and real estate investments in London in recent years, it remains unusual for funds to adopt a strategy of investing in long/short equities. Most prefer to allocate money through hedge funds of funds rather than building up their own capability.
Carrier said: “There is a team in Toronto that does this. We think European equities remain very attractive. It is in the context of us building out our London office; the one set of our business that has not been present is the public side.”
Carrasquillo was previously at a private family office, Tranberg Capital Management, and before that worked at Invesco and Partner Fund Management, according to Carrier.
Toronto-based CPPIB, which oversees about C$193 billion ($175 billion) in assets, has offices in London and Hong Kong and last month opened offices in New York and Brazil. Its London office, which opened in 2008, now has about 60 staff and Carrier said he expects that number “will grow substantially”. The firm hired Mark Corbidge, the former co-head of private equity at Doughty Hans

>>> Nestlé & L'Oréal Boards approved Strategic Transaction (Press Rel

Strategic Transaction Approved by Boards of Nestlé and L'Oréal

Paris and Vevey, February 11th, 2014 - Nestlé and L'Oréal announced today that their respective Boards of Directors, in meetings held on February 10th, 2014, have approved by unanimous decision of their voting members a strategic transaction for both companies under which L'Oréal will buy 48.5 million of its own shares (8% of its share capital) from Nestlé. This buyback will be financed:   Partially through the disposal by L'Oréal to Nestlé of its 50% stake in Swiss dermatology pharmaceuticals company Galderma (a 50/50 joint venture between L'Oréal and Nestlé) for an enterprise value of 3.1 billion euros (2.6 billion euros of equity value), paid by Nestlé in L'Oréal shares (21.2 million shares)   For the remainder, corresponding to 27.3 million L'Oréal shares held by Nestlé, in cash for an amount of 3.4 billion euros   The price per L'Oréal share retained for this transaction is the average of its closing prices between Monday November 11th, 2013 and Monday February 10th, 2014: 124.48 euros.   All the shares bought back by L'Oréal will be cancelled. Following the transaction, Nestlé's stake in L'Oréal will be reduced from 29.4% to 23.29% of the share capital and the Bettencourt Meyers family's stake in L'Oréal will increase from 30.6% to 33.31%. In order to reflect the change of Nestlé's stake in L'Oréal's governance, the number of Nestlé representatives on L'Oréal's Board of Directors will be adjusted from 3 to 2 Directors, and the ownership ceiling provisions of the shareholders' agreement between Nestlé and the Bettencourt Meyers family will apply to their respective new holdings.   The transaction will be accretive by more than 5% on L'Oréal's recurring earnings per share on a full year basis. The buyback will be exclusively financed with L'Oréal's available cash and through the issuance of commercial paper. It will not require the disposal of Sanofi shares held by L'Oréal.   The transaction is subject to customary conditions, including the prior consultation of Galderma's and L'Oréal's works councils and the clearance of relevant antitrust authorities. It is expected to close before the end of the first semester of 2014.     Mr. Peter BRABECK-LETMATHE, Chairman of Nestlé, said:   "With this proposed acquisition of 50% of Galderma, Nestlé will pursue its strategic development in Nutrition, Health, and Wellness, by expanding its activities to medical skin treatments.   In this respect, Nestlé will create a new centre of activities in this area, through a new entity: Nestlé Skin Health SA. Galderma will be the foundation of this entity which will be run by Galderma's management.   As a wholly owned subsidiary of Nestlé, Galderma will have all the required means for its development which will benefit to the company, its employees as well as all other stakeholders.   Following the decrease of its stake in L'Oréal, Nestlé will continue to support the development of L'Oréal as in the past 40 years. In this context, Nestlé will continue to act in concert with the Bettencourt Meyers family and the existing agreements, adapted to the new situation, will remain in place."     Mr. Jean-Paul AGON, Chairman and Chief Executive Officer of L'Oréal, said:   "This transaction represents a very positive strategic move for L'Oréal, its employees and its shareholders.   L'Oréal will focus exclusively on its Cosmetics business and its "Beauty for all" mission, its universalisation strategy and its ambition to win one billion new consumers.   L'Oréal will indeed benefit from a very significant and reinforced presence from the founding Bettencourt Meyers family, who will continue to fully support the company as it always did in the past.   L'Oréal will also continue to benefit from the support of Nestlé, which has always been a loyal and constructive shareholder.   Lastly, all of L'Oréal's shareholders will benefit from this transaction with an accretive impact on the company's earnings, resulting from the buyback and subsequent cancellation of L'Oréal shares held by Nestlé."     

Nestlé & L'Oréal Press Conference

February 11, 2014 at 8:00 am (CET)

 

Mr. Jean-Paul Agon and Peter Brabeck-Letmathe

are pleased to invite journalists

to L'Oréal headquarters, 41 rue Martre, Clichy

 

The press conference will be webcast via:

www.loreal-finance.com/eng/annual-results

    About L'Oréal   L'Oréal has devoted itself to beauty for over 105 years. With its unique portfolio of 28 international, diverse and complementary brands, the Group generated sales amounting to 23 billion euros in 2013 and employs 77,500 people worldwide. As the world's leading beauty company, L'Oréal is present across all distribution networks: mass market, department stores, pharmacies and drugstores, hair styling salons, travel retail and branded retail.   Research and innovation, and a dedicated research team of 4,000 people, are at the core of L'Oréal's strategy, working to meet beauty aspirations all over the world and attract one billion new consumers in the years to come. L'Oréal's new sustainability commitment for 2020 "Sharing beauty with all" sets out ambitious sustainable development objectives across the Group's value chain. www.loreal.com   About Nestlé   Nestlé is the world leader in nutrition, health, and wellness. The enterprise aims to improve the quality of life of consumers through healthier and tastier food and beverage choices throughout all the stages of their lives and at any time of day. With the recent creation of Nestlé Health Science, Nestlé has reinforced its strategic direction in giving it the capacity to develop nutritional solutions based on science to help prevent and treat various health problems.   Nestlé, founded nearly 150 years ago in Vevey, Switzerland, where it still has its headquarters, has 339,000 employees in more than 150 countries and in which it has 465 manufacturing facilities.   With revenues of 92.2 billion Swiss Francs in 2012, Nestlé offers an unmatched product portfolio, with more than 2,000 brands, both local and global. Seventy per cent of revenues are generated by brands with over one billion Swiss Francs in sales.   About Galderma   Galderma is a Swiss company, created in 1981, specializing in innovative medical solutions in dermatology for people throughout their lives, working closely with medical professionals. The company employs 4,000 in 31 affiliates and benefits from a worldwide network of exclusive distributors. Its extensive product portfolio, available in 70 countries, treat skin diseases including acne, rosacea, onychomycosis, psoriasis, and other steroid-responsive dermatoses, pigmentary diseases, skin cancer, and include medical solutions for skin senescence.     Contacts at L'Oréal   Individual shareholders and market authorities Mr Jean Régis CAROF Tel.: +33 1 47 56 83 02 jean-regis.carof@loreal.com

Financial analysts and institutional investors  Mrs Françoise LAUVIN Tel.: +33 1 47 56 86 82 francoise.lauvin@loreal.com    Journalists Mrs Stephanie CARSON-PARKER Tel.: +33 1 47 56 76 71 stephanie.carsonparker@loreal.com     Contacts at Nestlé   Media   Robin Tickle      Tel.: +41 21 924 22 00 mediarelations@nestle.com   Investors          Roddy Child-Villiers       Tel.: +41 21 924 36 22 ir@nestle.com

>>> Asian Update

Asian Market Update: Markets in a holding pattern ahead of the Yellen testimony; AUD boosted by rising business confidence

***Economic Data*** - (AU) AUSTRALIA JAN NAB BUSINESS CONDITIONS: 4 (3-year high) V 3 PRIOR; NAB BUSINESS CONFIDENCE: 8 V 6 PRIOR (1-year high) - (AU) AUSTRALIA Q4 HOUSE PRICE INDEX Q/Q: 3.4% (highest since Q2 of 2010) V 3.0%E; Y/Y: 9.3% V 8.6%E - (AU) AUSTRALIA DEC HOME LOANS M/M: -1.9% V 0.7%E; INVESTMENT LENDING: 2.9% V 2.0% PRIOR; OWNER-OCCUPIER LOAN VALUE: -1.5% V 2.2% PRIOR - (AU) Australia ANZ-Roy Morgan Consumer Confidence index in week ended Feb 9th: 116.0 v 115.2 prior - (NZ) NEW ZEALAND JAN ANZ TRUCKOMETER HEAVY M/M: 1.7% V 1.4% PRIOR - (KR) South Korea Jan Dept Store Sales y/y: +7.2% v -0.3% prior (strongest reading in 10 months); Discount Store Sales y/y: +18.4% v -5.7% prior (strongest reading in 3 years) - (PH) PHILIPPINES DEC EXPORTS: $4.6B V $4.3B; Y/Y: 15.8% V 10.4%E - (UK) UK JAN BRC SALES LFL Y/Y: 3.9% V 0.8%E (highest reading since Apr 2011)

***Observations/Insights*** - Asian indices modestly higher and USD tracking softer as investors anticipate the incoming Fed chair Yellen to tilt toward the dovish side in her first semiannual testimony to the House Financial Services Committee on Tuesday, particularly in the wake of two soft non-farm payrolls reports and taper-driven volatility in the EM space. - Australian currency continued to outperform among the majors, boosted by a 3-year print in the NAB business assessment for the month of January as well as rising prices in the property sector, supporting the case for less accommodation from the RBA. - China central bank on the sidelines in terms of operations for the 2nd consecutive session, opting to drain some of the vast amounts of liquidity injected ahead of the Lunar New Year break. Despite the passive stance, shibor rates fall for 2nd trading day, with overnight hitting a 2-week low.

***Fixed Income/Commodities/Currencies*** - (CN) Daily Shibor fixings: O/N: 4.1370% v 4.3035% prior (2nd consecutive decline; 2-week low); 1-week: 5.2010% v 5.2990% prior (2nd consecutive decline) - (CN) PBoC won't conduct open market operations (OMO) in today's session (2n consecutive session of halted operations) - (AU) Australia MoF (AOFM) sells A$200M in 2.0% 2035 indexed Bonds; avg yield: 2.1635%; bid-to-cover: 3.74x

- AUD tested the upside of the $0.90 handle following a strong print from NAB Business Conditions/Confidence metrics, marking a 4-week high, as short-covering reversal in the aussie continues to run its course. NZD was also higher with a 40pip jump above the $0.83 level, while EUR/USD rose some 30pips toward $1.3680 presumable on anticipation of a dovish Fed chair Yellen testimony. USD/JPY is trading in a 20pip range, supported by the ¥102 handle.

***Speakers/Political/In the Papers*** - (CN) China Academy of Social Sciences (CASS) Institute of Economics researcher Zhang Ping: Rising borrowing costs pose a major risk to China GDP; China companies will be hard pressed to cover the cost of debt, since loan rates are now exceeding 9% and growth momentum is slowing - China Daily - (CN) China State researcher Wu: Chinese economy will be very difficult in 2014 - Chinese press - (CN) Credit Agricole economist Kowalczyk: PBoC quarterly policy statement was "unusually hawkish"; Expects elevated levels of market rate volatility to persist - Shanghai Daily - (CN) According to Deovolente Realty Co, Shanghai pre-owned home sales for Jan: 14.3K units , -21% m/m; Avg price rose 4.7% m/m to CNY20.4K/sqm - Shanghai Daily - (CN) Follow-up: China Development Bank (CDB) denies speculation on credit line postpone - financial press - (CN) China big four banks Jan new loans CNY350B v CNY180B m/m, v CNY376.7B y/y - financial press - (KR) South Korea Finance Ministry (MOF) January report: Domestic demand recovery is not firm - (KR) South Korea Fin Min Hyun: South Korea more resilient to fx swings - FT interview - (KR) Upcoming BOK rate decision on Thursday, Feb 13th has analysts unanimous that rate will be kept unchanged at 2.50% - financial press - (US) Goldman Sachs chief economist Hatzius: Does not expect Fed Chair Yellen to signal pause of taper - financial press - (US) OBAMA ADMINISTRATION TO DELAY 2015 OBAMACARE PENALTIES AN ADDITIONAL YEAR FOR SOME BUSINESS - financial press

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 closed, S&P/ASX +0.6%, Kospi +0.5%, Shanghai Composite +0.4%, Hang Seng +1.6%, Mar S&P500 +0.3% at 1,800, Apr gold +0.7% at $1,284, Mar crude oil -0.1% at $100.05/brl

US markets: - MOH: Reports Q4 -$0.20 v -$0.02e, R$1.59B v $1.80Be; +0.5% afterhours - URBN: Reports Q4 R$905.9M v $926Me; SSS +1%; -1.8% afterhours - WBMD: Guides Q4 $0.23-0.25 v $0.18e, R$145.5-146.5M v $145Me; increases buyback by $50M (2.6% of market cap); -2.6% afterhours - NUAN: Reports Q1 $0.24 v $0.21e, R$490M v $485Me; Guides Q2 $0.21-0.25 v $0.25e, R$476-490M v $496Me - conf call slides; -2.9% afterhours - RAX: Reports Q4 $0.14 v $0.14e, R$408M v $405Me; CEO retires effective immediately; Co-Founder and Executive Chairman Graham Weston Appointed CEO While Board Searches for Long-Term Successor; Guides Q1 Rev +2-3.5% (q/q implies R$416-422M v $420Me) - conf call; -11.4% afterhours - BLOX: Reports prelim Q2 $0.10-0.12 v $0.11e, R$60-61M v $66Me (previously guided $0.09-0.11, R$65-66M); -31.6% afterhours

Notable movers by sector: - Consumer Discretionary: Cochlear Ltd COH.AU -10.0% (H1 results); Xi'an Catering 000721.CN +10.1% (special dividend proposal); Jiangsu Yanghe Brewery Joint-Stock 002304.CN +3.5% (share repurchase) - Consumer staples: China Agrotech Holdings 1073.HK -8.8% (profit warning) - Financials: Macquarie Group Limited MQG.AU -3.5% (trading update); ANZ Bank ANZ.AU +2.4% (Q1 results); Greentown China 3900.HK +3.9% (Jan results) - Industrials: Guangdong Europol Steel Logistics 002711.CN +4.8% (launches e-commerce service); Shenzhen O-film Tech 002456.CN +5.3% (R&D update); Great Wall Motor 2333.HK +4.4% (Jan production results); China State Construction Holdings H-Shares 3311.HK +1.8% (Jan results) - Technology: SIM Technology Group 2000.HK -7.1% (Jan results); Beijing SuperMap Software 300036.CN +10.0% (Alibaba acquires map service provider Autonavi); Hon Hai Precision Industries 2317.TW -1.7% (Jan results)