RTR - Italian PM says Kuwait to invest 500 mln euros in Italy

Italian PM says Kuwait to invest 500 mln euros in Italy

Feb 4 (Reuters) - Kuwait's sovereign wealth fund will invest 500 million euros ($676 million) in Italian companies in coordination with Italy's own strategic investment fund, Prime Minister Enrico Letta said on Tuesday.

The deal follows similar agreements with Qatar's investment fund last year to invest in Italian companies operating in the fashion, food and tourism sectors and a separate deal with the Russian Direct Investment Fund.

Kuwait and Italy will create a company with capital of 2.5 billion euros, of which 80 percent will come from Italy's strategic investment fund, the FSI, and the remainder from the Kuwait Investment Authority.

"This is an extraordinarily important development, it's an injection of confidence in our country," Italy's Letta said at a news conference in Kuwait during a visit to the Gulf states to attract interest in Italy as an investment destination.

>>> Gulf Keystone shares gain on talk of bid from MOL

Gulf Keystone shares gain on talk of bid from MOL 

Gulf Keystone shares gained yesterday, 4 February on talk of a potential takeover bid for the UK-based oil company from rival MOL, The Times reported.

The newspaper’s market report cited an energy sector website that suggested the listed Hungarian oil company was thinking about making an offer for Gulf Keystone.

A market report in The Daily Telegraph also attributed Gulf Keystone’s share price gains yesterday to renewed bid speculation, but did not cite a source for the rumour.

Gulf Keystone’s share price closed 9.50p up at 163.25p in London yesterday, giving the Kurdistan-focused company a market capitalisation of GBP 1.45bn (EUR 1.75bn).


Source The Times (London), Daily Telegraph

>>> Unibail Rodamco plans EUR 3.5bn assets sale within five years

Unibail Rodamco plans EUR 3.5bn assets sale within five years
 
Unibail-Rodamco, the listed French real estate group, is planning to dispose of assets worth EUR 3.5bn within the next five years, French daily Les Echos reported. The report cited chairman Christophe Cuvillier, speaking during the company’s 2013 results presentation, as saying about EUR 1.5bn -EUR 2bn of the divestments would involve commercial centres and the remaining EUR 1.5bn - EUR 2bn would involve offices.

The report noted out of the total EUR 32bn assets owned by Unibail, the offices account for a mere EUR 4bn only.

Les Echos

>>> What to look at today - 05/02/2014

US Market closed higher, but Dow didn't managed to reclaim its200d MA, like all rebound on the last few days Volume were light, below the average @665mil shares...VIX @ 18,87 -11,86%... France Fines Google EU1b Over Unpaid Taxes...US After Hours MYGN +15.2%, USNA +14.6%, DATA +14.5%, QNST -15.1%, XOOM-12%, GHDX -10.2% following earnings/guidance...
Volatility continued in the Asia region despite the bounce in US indices on Tuesday. Nikkei225 briefly tested below the 14,000 level before bouncing higher in the afternoon session, Hang Seng saw bids come in at 21,300, reversing its late-morning selloff...Japan labor cash earnings headline figure hit a 22-month high, rising for the 2nd consecutive month. However, a closer look at the figures saw base wages falling 0.2% y/y, down for 19th consecutive month...Nikkei +1.23% HS -0.49%

Eur$ 1.3505 S&P Fut -0.22% European future -0.45%

Keep an eye on :
- ADS GY : Adidas Sues Under Armour Over Patents: WSJ
- ALFA SS : Alfa Laval Sees 1Q Demand Flat or Slightly Lower vs 4Q, Fewer Large Orders in 1Q vs 4Q, CEO Says
- ALGETA NO : Algeta 4Q Operating Rev. NOK65m, Xofigo U.S. Sales NOK230m
- ANA SM : Acciona, Iberdrola, EDP Lose EU600M on Subsidy Cap, Expansion
- CS FP : Axa Banking Unit Closes U.S. Accounts: Le Figaro
- AZA IM : Alitalia Seeks EU128m Savings in Layoffs, Contract Changes: Sole
- BMW GY : BMW Studies $1.5b Investment in First Mexican Factory
- DTE GY : Deutsche Telekom May Bid for Telekom Slovenije: Handelsblatt
- GBB FP : Bourbon Says Demand for Offshore Vessels Is Growing
- GJF NO : Gjensidige 4Q Pretax Falls Less Than Est. to NK1.3B from NK1.4b
- GKP LN : Renew bif speculation
- GLEN LN : Glencore May Be Potential Fission Uranium Buyer: Salman Says
- HDD GY : Heidelberger Druck 3Q Profit Falls; Sees FY Sales Volume Decline
- HOT GY : Hochtief Held 58.77% Stake in Leighton Holdings, Up From 57.75%
- KN FP : Caisse d’Epargne to Open Consumer Bank in Switzerland: Les Echos
- KPN NA : KPN CEO Blok Buys 50,000 Company Shares, Regulatory Filing Shows
- LUPE SS : Lundin Petroleum 4Q Revenue $288.2 Mln; Analyst Est. $289 Mln
- MB IM : Mediobanca May Form Fund for Smaller Lenders’ Bad Loans: Reuters
- MELE BB : Melexis 4Q Net EU15.8m; Est. EU14.7m; Ebit EU18.1m; Est. EU17.2m
- MHG NO : Marine Harvest 4Q Net Beats Ests., Sees Likely Div. Increase
- NOVN VX : Novartis Said to Draw Interest for $1 Billion Vaccines Business
- NSG NO : Norske Skog 4Q Ebitda NK298m Vs Analyst Est. NK211m
- PSM GY : EU Free TV Outlook Positive; ProSieben, Mediaset Top Picks: GS
- SEBA SS : SEB Raises Dividend as 4Q Profit Beats Ests.
- SCVB SS : Volkswagen Seen Looking at Raising Majority Scania Stake: WSJ
- SDA1V FH : Sponda 4Q Net Income, EPS Beat Ests.; Proposes Raising Dividend
- SYNN VX : Syngenta Says to Reach Lower-End of 2015 Margin Range Goal
- TEF SM : Telefonica Open to Possible Purchases in Mexico, Gil Diaz Says
- TKA AV : America Movil Values Telekom Austria E. Europe Assets: Krone.at
- UHR VX : Swatch 2013 Profit Beats Ests., 2014 Start ‘Auspicious’ (Op Profit CHF2.31b; Est. CHF2.06b)
- UL FP : Unibail-Rodamco 2013 EPS, Dividend Beat Ests.
- WLF LN : Wolfson 4Q Sales $42m vs $56.1m y/y; Posts Operating Loss

>>> Brokers Upgrades & Downgrades -05/02/2014

>>> Up
*ALMARAI RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*ARCELORMITTAL RAISED TO OVERWEIGHT AT HSBC
*ARKEMA RAISED TO BUY VS HOLD AT BERENBERG
*BBVA RAISED TO OVERWEIGHT AT HSBC
*GIVAUDAN RAISED TO HOLD VS SELL AT BERENBERG
*HISCOX RAISED TO BUY VS REDUCE AT NOMURA
*JD WETHERSPOON RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*MASSMART HOLDINGS RAISED TO NEUTRAL VS SELL AT GOLDMAN
*RSA Raised to Equalweight at Barclays on Hester Joining as CEO
*RSA INSURANCE RAISED TO MARKET PERFORM AT RAYMOND JAMES
*SYMRISE RAISED TO BUY VS HOLD AT BERENBERG
*TUPRAS RAISED TO BUY VS NEUTRAL AT BOFAML

>>> Down
*DIXY GROUP CUT TO NEUTRAL VS BUY AT GOLDMAN
*FREENET CUT TO HOLD VS BUY AT BANKHAUS LAMPE
*LAFARGE CUT TO NEUTRAL VS BUY AT CITI
*LANCASHIRE CUT TO REDUCE VS NEUTRAL AT NOMURA
*MIGROS TICARET CUT TO NEUTRAL VS BUY AT GOLDMAN
*MLP AG CUT TO SELL VS HOLD AT BANKHAUS LAMPE
*PHILIPS CUT TO HOLD VS BUY AT ING
*THYSSENKRUPP CUT TO UNDERWEIGHT AT HSBC

>>> PT change
*CNH Industrial PT Cut to EU10 vs EU10.5 at Barclays
*FAURECIA PT RAISED TO EU35 VS EU30 AT EXANE; TOP SUPPLIER PICK
*LVMH PT RAISED TO EU163 VS EU150 AT BERENBERG, KEEPS BUY

>>> Initiation
*DE LONGHI RATED NEW BUY AT BERENBERG; PT EU19
*GENERALI REINITIATED AT HOLD AT KEPLER CHEUVREUX; PT EU15.7
*KAZAKHMYS REINSTATED NEUTRAL AT CITI, PT CUT TO 200P VS 280P

>>> Call
>> Stock
*ABB ADDED TO EUROPE 1 LIST AT BOFAML
*ING ADDED TO EUROPEAN FOCUS LIST AT CREDIT SUISSE
*PROSIEBENSAT.1 ADDED TO CONVICTION BUY LIST AT GOLDMAN
*ROCKHOPPER REMOVED FROM CONVICTION BUY AT GOLDMAN; STILL BUY

>>>US After Hours

After Hours Summary: MYGN +15.2%, USNA +14.6%, DATA +14.5%, QNST -15.1%, XOOM -12%, GHDX -10.2% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: MYGN +15.2%, USNA +14.6%, DATA +14.5%, GIMO +6.4%, OCLR +5.6%, BBSI +5%, GNW+4.6%, NANO +3.6%, AMP +2.9%, DV +2.2%, RNR +1.8%, BWLD +1.3%, AFL +0.9%,CERN +0.7%, PTP +0.7%, LRAD +0.5%, PIKE +0.1%

Companies trading higher in after hours in reaction to news: - MYGN +15.2% (to acquire Crescendo Bioscience for $270 mln in cash which will be reduced by $25 mln for the repayment of a loan made to Crescendo and customary adjustments in accordance with the acquisition agreement, acquisition to be accretive to earnings beginning in fiscal year 2016; co also reported earnings), - IDIX +7.3% (The Baupost Group disclosed a 35.38% active stake in amended 13D filing; reports purchase of ~16.4 mln shares), - CALL +3.2% (announced dismissal of class action lawsuit), - MMM +1.1% (Board authorized $12 bln share repurchase program)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: QNST -15.1%, XOOM -12%, GHDX -10.2%, KEYW -8.5%, HAIN -7.3%, CHRW -6.4%, PACB -5.6%, ESIO -5.5%, MWA -2.8%, ACLS -2.6%, HNI -2.3%, THO -2.1%, ATW -2.1%, SPDC -1.8%, MANH -1.7%, MAC -1.3%, GILD -1.1%, ARWR -1%, AXS -0.6%, VTSS -0.6%, CVD -0.2%, EXP -0.1%

Companies trading lower in after hours in reaction to news: - XOOM -9.4% (acquired BlueKite for ~ $15 million in cash and equity; co also reported earnings), - AGEN -6.9% (commenced an underwritten public offering of shares of its common stock), - IDRA -3.8% (announced public offering of common stock and pre-funded warrants), - HCI -1.3% (to cancel Series A Preferred Stock conversion rights), - ARWR -1.0% (filed for $200 mln mixed securities shelf offering)

>>>Asian Update

Asian Market Update: Nikkei225 plunges to 4-month low below 14,000; Japan base wages fall for 19th consecutive month

***Economic Data*** - (JP) JAPAN DEC LABOR CASH EARNINGS Y/Y: 0.8% V 0.6% PRIOR (22-month high; 2nd consecutive increase) - (AU) AUSTRALIA JAN AIG PERFORMANCE OF SERVICES INDEX: 49.3 V 46.1 PRIOR (10-month high) - (NZ) NEW ZEALAND Q4 UNEMPLOYMENT RATE: 6.0% (lowest rate since Q1 of 2010) V 6.0%E; EMPLOYMENT CHANGE Q/Q: 1.1% V 0.6%E; Y/Y: 3.0% V 2.4%E; PARTICIPATION RATE: 68.9% (multi-year high) V 68.6%E - (NZ) NEW ZEALAND Q4 AVERAGE HOURLY EARNINGS Q/Q: 0.3% V 0.1%E; PRIVATE WAGES EX-OVERTIME Q/Q: 0.6% (2-year high) V 0.5%E; PRIVATE WAGES INCL OVERTIME Q/Q: 0.6% V 0.5%E - (KR) SOUTH KOREA JAN FOREIGN RESERVES: $348.4B V $346.5B PRIOR (record high for 7th month) - (TW) TAIWAN JAN HSBC/MARKIT MANUFACTURING PMI: 55.5 V 55.2 PRIOR (33-month high) - (PH) PHILIPPINES JAN CPI M/M: 0.7% V 0.5%E; Y/Y: 4.2% V 4.1%E; CORE CPI Y/Y: 3.2% V 3.1%E - (UK) UK JAN BRC SHOP PRICE INDEX Y/Y: -1.0% V -0.7%E (record high decline)

***Observations/Insights*** - Volatility continued in the Asia region despite the bounce in US indices on Tuesday. Nikkei225 briefly tested below the 14,000 level before bouncing higher in the afternoon session, S&P/ASX found support just above 5,050, while the Hang Seng saw bids come in at 21,300, reversing its late-morning selloff. - New Zealand Q4 unemployment rate fell to its lowest level since early 2010 - figures were particularly impressive given that labor participation rate hit a multi-year high. - Japan labor cash earnings headline figure hit a 22-month high, rising for the 2nd consecutive month. However, a closer look at the figures saw base wages falling 0.2% y/y, down for 19th consecutive month. Companies are still much more willing to hire on part time basis (+3.5% y/y increase in workers) and offering their employees overtime (+4.6% y/y; 9th consecutive increase) than take on new staff or offer higher salaries. Critics of Abenomics are likely to latch on to the latest instance of tepid wage gains which appears to support the case of rising inflation being of the cost-push rather than demand-pull variety.

***Fixed Income/Commodities/Currencies*** - (JP) BOJ offers to buy ¥250B in 1-3yr JGB, ¥250B in 3-5yr JGB and ¥400B in 5-10yr JGB as well as ¥400B in CP - JGB: (JP) Japan 30yr govt bond yield falls to 1.585%, lowest since Oct - (AU) Australia MoF (AOFM) sells A$800M in 2025 bonds; avg yield: 4.1550%; bid-to-cover: 5.06x - GLD: SPDR Gold Trust ETF daily holdings rise 3.9 tonnes to 797.1 tonnes (3rd consecutive rise; 2-week high) - (US) API PETROLEUM INVENTORIES: CRUDE: +385K (3rd consecutive build) v +2Me; GASOLINE: -1.2M v +1Me; DISTILLATE: -1.46M v -2Me

- USD majors reflect a more prevalent risk-off sentiment even though despite the rally on Wall St, even though a positive ADP/Services ISM on tap for early Wednesday could still turn the corner on the selloff. NZD/USD hit session highs above $0.8250 after employment data before falling below $0.8190, and AUD/USD is off some 60pips from its 180-pip post-RBA spike to fall below $0.8880. Japanese Yen is also bid across the board, with USD/JPY falling 50pips from the highs to ¥101.25, AUD/JPY retesting the downside of ¥90, and EUR/JPY down 70pips below ¥136.90

***Speakers/Political/In the Papers*** - (CN) Barclays: China coal sector 2014 growth may reach 6% y/y - financial press - (CN) Nikkei report questions the accuracy behind the employment data from China - (JP) Japan Chief Cabinet Sec Suga: it is ideal for Japan companies to rise base pay during spring wage talks - (JP) Tokyo Gubernatorial Election on Sunday Feb 9th; former minister Masuzoe currently ahead of the four major candidates - Japanese press - (AU) Australian PM Abbott: Aims to maximize Australian jobs, wages, and productivity increases - (KR) South Korea Fin Min Hyun: Govt to prepare for US tapering impact - (PH) Philippines Central Bank (BSP) Gov Tetangco: Room to keep rates steady may be narrowing; To see if adjustment to policy stance warranted; To continue to watch general price pressures

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 +1.1%, S&P/ASX -0.6%, Kospi +0.4%, Shanghai Composite closed, Hang Seng flat, Mar S&P500 -0.3% at 1,739, Apr gold +0.2% at $1,253, Mar crude oil +0.5% at $97.63/brl

US markets: - DATA: Reports Q4 $0.20 adj v $0.00e, R$81.5M v $66.6Me; +14.7% afterhours - MYGN: Reports Q2 $0.66 v $0.47e, R$204M v $178Me; To Acquire Crescendo Bioscience for $270M in cash; +14.5% afterhours - USNA: Reports Q4 $1.41 v $1.25e, R$186.3M v $179Me; +14.1% afterhours - BWLD: Reports Q4 $1.10 v $1.06e, R$341.5M v $345Me; +2.3% afterhours - MMM: Authorizes $12B (14.3% of market cap) Share Repurchase Program; +1.0% afterhours - CERN: Reports Q4 $0.39 v $0.39e, R$795.3M v $793Me; +0.7% afterhours - GILD: Reports Q4 $0.55 v $0.50e, R$3.12B v $2.85Be; -0.8% afterhours - CHRW: Reports Q4 $0.62 v $0.68e, R$3.15B v $3.26Be; -6.2% afterhours

Notable

FT : Italy accuses S&P of not getting ‘la dolce vita’

Italy accuses S&P of not getting ‘la dolce vita’

Michaelangelo's portrayal of the Creation on the ceiling of the Sistine Chapel in the Vatican
If financial analysts had spent more time admiring a Michaelangelo fresco or reading Dante instead of poring over spreadsheets, they might not have touched off the inferno that engulfed the Italian sovereign debt market, Italy’s state auditor is claiming.
Standard & Poor’s revealed on Tuesday it had been notified by Corte dei Conti that credit rating agencies may have acted illegally and opened themselves up to damages of €234bn, in part by failing to consider Italy’s rich history of art and literature when downgrading the country.

Europe faces 20 years of pain over energy prices
The gigantic claim, which S&P dismissed as “frivolous and without merit”, relates to the string of downgrades the rating agency issued on Italian debt when the eurozone crisis intensified in 2011.
An official in Italy confirmed the judicial inquiry into S&P and its smaller peers, Moody’s and Fitch, and said that more details would be released by the prosecutor acting for the Corte dei Conti on February 19.
Previous reports have indicated the auditor is considering whether “reckless” rating agency reports on Italy’s public debt contributed to a worsening of the sovereign debt crisis, forcing the governments of Silvio Berlusconi and then Mario Monti to take emergency measures.
While it remains uncertain that the claim will be brought, the auditor’s dramatic threat – and the size of damages it has suggested – reflects anger in European political circles at the role played by rating agencies in the market turmoil that threatened the eurozone.
The prospect of sovereign downgrades caused waves of selling of government debt from countries such as Italy and Spain, raising their borrowing costs and further damaging their public finances.
The Corte dei Conti is an institution with the constitutional role of “safeguarding public finance and guaranteeing the respect of the jurisdictional system”. S&P is expected to claim that it has jurisdiction only over government employees and agents and not over rating agencies.
A spokesman for Moody’s also said the allegations were without merit.
Fitch said it would co-operate with the probe. “As we understand the prosecutor’s concerns, we believe Fitch at all times acted appropriately and in full compliance with the law.”
A €234bn lawsuit would dwarf all other legal claims brought against the rating agencies over the actions in the run-up to, and during, the financial crisis.
Investors in mortgage-backed derivatives have lodged claims alleging that the agencies exaggerated the creditworthiness of these complex instruments to win business – claims the agencies have denied.
The US government has separately launched a $5bn civil lawsuit against S&P saying it fraudulently inflated ratings on collateralised debt obligations.

>>> Gilead Sciences beats by $0.05, beats on revs; sees FY14 net product sales o

Gilead Sciences beats by $0.05, beats on revs; sees FY14 net product sales of $11.3-11.5 bln 

Reports Q4 (Dec) earnings of $0.55 per share, $0.05 better than the Capital IQ Consensus Estimate of $0.50; revenues rose 20.5% year/year to $3.12 bln vs the $2.84 bln consensus.
Atripla sales +1.8% yoy to $933.6 mln
Truvada sales -2.2% yoy to $814.1 mln
Antiviral product sales increased 22 percent to $2.64 billion for the fourth quarter of 2013, compared to $2.17 billion for the fourth quarter of 2012, reflecting sales growth of 30 percent in the U.S. and 7 percent in Europe.
Cardiovascular product sales increased 25 percent to $268.5 million for the fourth quarter of 2013 compared to the same period in 2012.
Co sees FY14 net product sales of $11.3-11.5 bln, non-GAAP product gross margin of 75-77%, and "Diluted EPS Impact of Acquisition-Related, Restructuring and Stock-Based Compensation Expenses" of $0.63-0.66.

>>> US Close : Dow+0,47% S&P+0,76% Nasdaq+0,86%

Closing Market Summary: Stocks Climb While Yen Slides

After enduring a broad-based selloff on Monday, the stock market rebounded, erasing roughly a third of yesterday's losses. The Nasdaq led the way, rising 0.9% while the S&P 500 gained 0.8%. For its part, the Dow Jones Industrial Average added 0.5%, but was unable to reclaim its 200-day moving average (15474).

Equities rallied steadily throughout the session in the absence of yen strength, which has been a headwind to the market since the start of the year. In fact, the yen began retreating overnight, and continued its slide into the close. Dollar/yen finished near 101.65 after starting its rally from just below the 101.00 level. Meanwhile yen futures lost 0.8%, trimming their 2014 gain to 3.6%.

Nine of ten sectors ended in the green with the discretionary space in the lead. The sector added 1.2% after Michael Kors (KORS 89.91, +13.24) and Yum! Brands (YUM 72.06, +5.06) reported above-consensus earnings. KORS surged 17.3% and YUM jumped 8.9% while also providing support to their respective industry groups. Despite today's relative strength, the discretionary sector remains the weakest performer of the year, down 7.4%.

Other influential groups like health care (+1.0%) and financials (+1.0%) also finished ahead of the broader market while technology (+0.5%) and industrials (+0.6%) lagged.

The largest S&P 500 sector, technology, struggled to keep pace with the market even with its top component, Apple (AAPL 508.79, +7.26), advancing 1.5%. Another large sector member, Microsoft (MSFT 36.35, -0.13), ended little changed after announcing Satya Nadella will replace the outgoing Chief Executive Officer Steve Ballmer.

Elsewhere, the industrial sector lagged as the underperformance of Boeing (BA 122.04, -1.04) and United Technologies (UTX 109.10, -1.06) overshadowed the broad gains among transports. The Dow Jones Transportation Average advanced 1.2% as all but one component ended in the green. Con-way (CNW 37.19, -0.66) was the lone decliner, falling 1.7%.

Treasuries ended near their lows with the 10-yr yield up four basis points at 2.62%.

Participation was above average as 820 million shares changed hands at the NYSE.

Today's economic data was limited to the December factory orders report:
Factory orders declined 1.5% after increasing a downwardly revised 1.5% (from 1.8%) in November. The consensus expected factory orders to decline 1.7%. The durable goods data were revised slightly higher, but still left a lot to be desired. Orders fell 4.2%, which was slightly above the 4.3% decline reported in the advance release. A large portion of the decline was a result of a sharp drop in transportation demand (-9.7%), which was mostly the result of a 16.9% decline in defense and nondefense aircraft.
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the ADP Employment Change report for January will be released at 8:15 ET. The day's data will be topped off with the 10:00 ET release of January ISM Services.
Nasdaq Composite -3.5% YTD
S&P 500 -5.0% YTD
Russell 2000 -5.1% YTD
Dow Jones Industrial Average -6.8% YTD