Seadrill Ltd Reports Q1 Net $3.09B v $2.9Be, EBITDA $624M (excludes gain on sale) v $733Me- Order Backlog $18.8B
Sacyr prepares EUR 500m capital increase in Testa
Sacyr, the Spanish construction and concessions group, is preparing a EUR 500m capital increase of its listed rental properties unit Testa Inmuebles en Renta, El Confidencial reported.Lawyer Garrigues Global has been appointed to advise on the operation and JPMorgan and Morgan Stanley will coordinate the issue, the unsourced Spanish-language report said.
Testa's current free-float is very small given that Sacyr controls 99.5%, the report said.
Testa owns 1.4m square metres of rental properties that have occupation rates of about 98%, El Confidencial went on to say. Last year it reported sales of EUR 220m (including EUR 215m from the rental business) and EBITDA of EUR 217m following assets' divestitures.
The proposal to be voted at the general meeting called for 2 June will include a capital reduction of EUR 625m prior to the capital increase. Testa will also share EUR 520m in dividend, the report said.
Testa is valued at EUR 1.5bn, the report noted. Sacyr will retain about 75% of the unit.
Source El Confidencial
*WEIR PROPOSES ALL-SHARE EXCHANGE OFFER 0.95 SHRS PER METSO SHR
US Market closed higher, comment from Draghi and good performance of European mkt yesterday helped the sentiment...Better Eco data were also good news...S&P set new records...Russel closed above its 50d MA...Every sector were up excep telcos...Volume was still below average @ 550mil shares...VIX @ 11,54 +1,6%...China April industrial profit growth slowed to single digits y/y and also incrementally softer on YTD basis...Nikkei +0.45% HS+0.84% Shanghai +0.33%
Eur$ 1,3632 S&P Fut +0.10% European Fut+0.10%
Macro
- Fed's Lockhart : Expects first raise in main rate in H2 2015; Expects Fed to halt QE in Q4 2014; Sees 3% GDP growth over next several quarters Policy
- Poroshenko Wants to Talk to Putin to Stabilize Ukraine: Bild
- Jain Says ECB Tests Will Create Preconditions for Bank Mergers
- EuroStoxx 600 : In : Alpha Bank, ALtice, Billerudkorsnas, Orpea, Hexpol Out: Aurubis, Holmen, Hufvudstaden, Suedzucker Full statement : {http://tinyurl.com/m6xjafa}
- Hollande Rejects Slower Deficit Reduction Plan for France
- Templeton’s Lewis Says Focusing on Europe, Asia for Growth: HB
Keep an eye on :
- Insurance : European Insurers Exposure to Italy Govt Bonds ~EU145b: JPMorgan
- ACA FP : Credit Agricole to Cut Stake in BES to 15% After Rights Offer
- AH NA : Ahold 1Q Rev EU9.8 Bln; Est. EU9.8 Bln, 1Q Underlying Oper. Inc. Misses Ests.
- ALO FP : GE’s Immelt Says GE ‘Deeply Invested in France’, wld increase jobs & Research in France
- ARM LN : ARM Holdings could be takeover target for Google - FT
- ATC NA : Altice to join Eurostoxx 600
- BELG BB : Belgacom Wins Court Bid to Have Telenet-Interkabel Deal Annulled
- BOSS GY : Permira selling 3,95mil shares (5,6% stake) MS sole book runner - Price Range 101,25 - to Mkt price
- BP/ LN : BP Loses Bid to Stall Spill Payments During High Court Review
- CA FP : Carrefour Prepares Exit From India, Les Echos Says
- CU FP : Bonomi Has Until June 30 to Make Offer for Club Med: AMF
- EKTA SS : Elekta 4Q Net Misses Est.; Sees FY Sales Growth of 7-9%
- ELR FP : Elior Seeks to Raise About EU1.1 Billion in Initial Public Offer preic range €14.35/€17.50
- GSK LN : Glaxo : UK serious fraud office (SFO) is investigating the company's commerical practices, has opened formal criminal investigation
- GSK LN : Glaxo could be interested by ARIAD - £1bil price mentionned - Ariad +3% yest. -->£1b --> 35% upside
- ILD FP : Iliad SA ARCEP reportedly plans investigation into whether the company is following its obligations on 3G ({NSN N69P366TTDSA <go>} - should cover 75% of population by 12th of Jan 2015
- MS IM : Mediaset may enter into talks with BSkyB over selling stake in Mediaset Premium
- NEO FP : Neopost 1Q Rev. EU257.4m vs Est. EU264.5m (2 Ests.)
- NESN VX : MORE: Nestle to Buy Valeant Dermatology Products for $1.4b in cash
- OSR GY : Osram Licht Adjusts Rev. Outlook for FY 2014, Sees FY rev. at last yr’s level, “at best a modest rev. increase, on a comparable basis.”
- PVA SM : Pescanova Restates 2011, 2013 Accounts, Administrator Says
- PRS IM : Prelios : Rumor that Pirelli would sell 16% stake (according to bbg htey have 29.22%)
- RBS LN : RBS Plans to Cut Hundreds of U.S. Trading Jobs: WSJ
- SAN FP : Sanofi, Lilly Announce Licensing Agreement for Cialis OTC
- SBMO NA : SBM Wants Petrobras Clarification on Tartaruga, Libra Tenders
- SIE GY : Siemens Seeks Quick Exit From Bosch Appliances JV: Frankfurter
- STR AV : Strabag 1Q Net Loss Narrows on Better Weather; Outlook Confirmed
- TKA AV : America Movil to Secure 24% Telekom Austria Free Float, Mgmt Neutral on America Movil’s Takeover
- TIT IM : Telecom Italia Raised at Goldman on Potential for Consolidation
- UNI IM : Consob Didn't Favor Unipol in Fonsai Merger, Vegas Tells Stampa
- DG FP : Vinci, Hochtief Win EU255m Road Contract in Slovakia
- VOD LN : Vodafone Attractive Way to Get Exposure to EU Telco M&A: Nomura
>>> Up
*AXA RAISED TO OUTPERFORM VS UNDERPERFORM AT MEDIOBANCA
*BACHEM RAISED TO NEUTRAL VS SELL AT UBS
*SAFILO RAISED TO NEUTRAL VS UNDERPERFORM AT BOFAML
*TELECOM ITALIA ADDED TO CONVICTION BUY LIST AT GOLDMAN
*YPSOMED RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*ZON OPTIMUS RAISED TO NEUTRAL VS SELL AT GOLDMAN
>>> Down
*AVEVA GROUP CUT TO NEUTRAL VS BUY AT UBS
*BELGACOM REMOVED FROM CONVICTION SELL AT GOLDMAN; STILL SELL
*BWIN.PARTY CUT TO NEUTRAL VS OUTPERFORM AT EXANE
*NOKIAN RENKAAT CUT TO BUY VS STRONG BUY AT NORDEA
*NORDNET CUT TO HOLD VS BUY AT SEB
*OSRAM CUT TO NEUTRAL VS BUY AT BOFAML
*SWATCH CUT TO HOLD VS BUY AT SOCGEN
*TRANSNEFT CUT TO SELL VS NEUTRAL AT CITI
*VODAFONE CUT TO HOLD VS BUY AT BERENBERG
*VTB CUT TO UNDERPERFORM VS NEUTRAL AT BOFAML
>>> PT Changes
*ROYAL MAIL PT CUT TO 480P VS 500P AT CANTOR; KEPT AT SELL
*SNAM PT CUT TO EU4.15 VS EU4.2 AT GOLDMAN; KEPT AT NEUTRAL
*TERNA PT RAISED TO EU3.55 VS EU3.5 AT GOLDMAN; KEPT AT SELL
>>> Initiation
*PREMIER FOODS REINSTATED OUTPERFORM AT CREDIT SUISSE, PT 90P
*SEPLAT PETROLEUM RATED NEW NEUTRAL AT CITI, PT 270P
>>> Call
>> Stock
*BELGACOM REMOVED FROM CONVICTION SELL AT GOLDMAN; STILL SELL
*LSE ADDED TO CREDIT SUISSE’S FOCUS LIST
*TELECOM ITALIA ADDED TO CONVICTION BUY LIST AT GOLDMAN
FSI may set up newco to invest in utility sector and open it to outside investors
FSI, the state-owned strategic investment fund, is looking to set up a newco to invest in the country's utilities sector, Italian language daily Milano Finanza reported. The unsourced report said that up to a 49% stake in the newco could be sold to outside investors.
The report said that the newco could have funds of EUR 2-3bn to buy stakes in Italian utilities, particularly in southern Italy.
Source Milano Finanza daily edition
ARIAD rumoured to be eyed by GSK for GBP 1bn takeover bid
GlaxoSmithKline is rumoured to be considering a takeover offer for Nasdaq-listed ARIAD Pharmaceuticals, The Independent reported. The market report mentioned trader chatter suggesting the bid under consideration is worth GBP 1bn (EUR 1.2bn). Rumours of GSK’s interest in Cambridge, Massachusetts-based ARIAD were also circulating earlier this year, the item noted.
GSK, a London-listed drugs group headquartered in the UK, did not wish to comment on the matter, the report said.
Source Independent
Fed's Lockhart (moderate, FOMC alternate): Expects first raise in main rate in H2 2015; Expects Fed to halt QE in Q4 2014; Sees 3% GDP growth over next several quarters Policy
- Reiterates expects Fed to halt QE in Q4 2014
- No strong view on exact end date for Taper.
- Expects first raise in main rate in H2 2015; Reiterates 6 months from QE end to rate hike too short
- Sees growth rebound, no rush to raise rates.
- Has not yet achieved inflation, employment goals. - Discussion of policy normalization does not imply imminent shift.
- Transition to rate hikes will need careful execution and clear communication.
- Fed should continue reinvesting bond proceeds until Feb begins rates hike.
- Considers long-term Fed funds rate at around 4%.
After Hours Summary: QIHU +6.1%, WDAY +5.9%, MDXG +0.7%, CRMT -13.6%, WTSL -10.9%, GOMO -9.0% following earnings/guidance
After Hours Gainers: Companies trading higher in after hours in reaction to earnings: QIHU +6.1%, WDAY +5.9%, MDXG +0.7%
Companies trading higher in after hours in reaction to news: POWR +3.3% (Becker Drapkin Management disclosed 8.8% active stake in 13D filing), LEJU +2.9% (Tencent Holdings disclosed 16.1% active stake in 13D filing), JDSU +2.1% (announced $100 mln common stock repurchase program), ANH +1.9% (Board authorized co to acquire up to an additional 10 mln shares through its share repurchase program), URBN +1.0% (announced authorization to repurchase 10 mln shares), CLF +0.8% (reduced FY14 CapEx guidance by an additional $100 mln), SPWR +0.6% (co and Xcel Energy to build 50-megawatt solar power plant in Colorado)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings: CRMT -13.6%, WTSL -10.9%, GOMO -9.0%
Companies trading lower in after hours in reaction to news: ACUR -16.7% (announced the FDA advised that data from co's AVERSION hydrocodone bitartrate with acetaminophen product candidate are insufficient to support an intranasal abuse deterrence claim), DDD -5.4% (announced 9.59 mln share public offering of common stock), BEE -3.6% (announced offering of 34 mln shares of common stock), CACH -3.3% (commenced $14 mln public offering of common stock), BCRX -2.8% (commenced $100 mln public offering of common stock), HCN -2.3% (announced 12 mln share common stock offering), TWGP -1.4% (to be replaced in the S&P SmallCap 600 by CTREV), BKD -1.2% (announced secondary offering of 19.4 mln common shares by certain affiliates of Fortress Investment Group), RXN -1.2% (announced launch of public offering of 15 mln shares of common stock by selling stockholders)
Asian Market Update: China industrial profits growth slows further; Fonterra lowers milk price for FY14 by 20%
***Economic Data*** - (CN) CHINA APR INDUSTRIAL PROFITS Y/Y: 9.6% V 10.7% PRIOR; YTD Y/Y: 10.0% V 10.1% PRIOR - (AU) AUSTRALIA APR WESTPAC LEADING INDEX M/M: -0.5% (biggest decline in 5 years) V 0.0% PRIOR - (AU) AUSTRALIA Q1 CBA/HIA HOUSE AFFORDABILITY: 77.2 V 75.6 PRIOR (best affordability in 12 years) - (AU) AUSTRALIA Q1 CONSTRUCTION WORK DONE Q/Q: +0.3% v -0.5%E - (NZ) NEW ZEALAND MAY ANZ ACTIVITY OUTLOOK: 51.0 V 52.5 PRIOR; ANZ BUSINESS CONFIDENCE: 53.5 (3rd consecutive decline; 6-month low) V 64.8 PRIOR
Market Snapshot (as of 03:30 GMT): - Nikkei225 flat, S&P/ASX +0.4%, Kospi +0.5%, Shanghai Composite flat, Hang Seng +0.5%, Jun S&P500 flat at 1,909, Jun gold -0.1% at $1,264, Jul crude oil +0.1% at $104.19/brl
***Highlights/Observations/Insights*** - Fonterra finalizes its milk price for FY13/14 at NZ$8.40/kg, down from NZ$8.65/kg prior estimate, and also initiates FY14/15 forecast at NZ$7.00/kg. Co-op continues to see China demand remaining strong, anticipating about 2% growth in overall milk production for the coming season. ANZ economists noted the price cut was not as steep as markets had feared, briefly sending NZD slightly higher.
- China April industrial profit growth slowed to single digits y/y and also incrementally softer on YTD basis. Research notes from mainland analysts and the CICC varied on the viability of a more aggressive policy easing in the shape of a RRR cut - the former leaning in favor and the latter arguing in support of a more low-profile and targeted monetary easing.
- Commentary accompanying Australia's Westpac leading index from resident economist warned that the data show a "slowdown corroborated across all components (which) is a strong indication that a genuine slowdown is underway." Note Australia will put out its critical private CAPEX survey from the ABS, widely regarded as a powerful gauge of business appetite for risk as well as the health of the mining industry.
***Speakers/Political/In the Papers*** - (CN) China National Development and Reform Commission (NDRC): China's high level of iron ore inventory to continue - financial press - (CN) Slowdown in China housing market adds the chance to a RRR cut; Chance for a loose monetary policy still low - Chinese press - (CN) China Pres Xi Jinping: Both the "invisible hand" and the "visible hand" should be well used - Xinhua - (JP) BOJ Gov Kuroda: critical to balance policy flexibility and commitment in forward guidance - BOJ conf (Tokyo) - (US) Fed's Lockhart (moderate, FOMC alternate): Expects first raise in main rate in H2 2015; Expects Fed to halt QE in Q4 2014; Sees 3% GDP growth over next several quarters
***Fixed Income/Commodities/Currencies*** - (JP) BOJ offers to buy ¥250B in 1-3yr JGB, ¥250B in 3-5yr JGB and ¥170B in JGB with maturity over 10-yr - (AU) Australia sells A$700M in bonds due 2027; Avg yield: 3.9479%; Bid-to-cover: 3.02x - GLD: SPDR Gold Trust ETF daily holdings rise 8.4 tonnes to 785.3 tonnes (first rise since May 15th)
- USD majors were largely confined to thin post-holiday ranges with the exception of the kiwi dollar. NZD/USD initially rose some 30pips above $0.8570 as New Zealand's Fonterra payout cut for the current year and next year were not as steep as feared, but retreated back below $0.8550 later in the day. USD/JPY backed away from the ¥102 handle, sliding some 10pips to ¥101.90, while EUR/USD consolidated the moderate selling in the US session to trade within the $1.3620-40 band. AUD/USD traded about 10pips on either side of $0.9260 amid mixed economic data from Australia and China.
***Equities*** US markets: - WDAY: Reports Q1 $0.13 v -$0.15e, R$159.7M v $153Me; +8.7% afterhours - QIHU: Reports Q1 $0.54 v $0.34e, R$265.1M v $222Me; +6.0% afterhours - URBN: Announces Authorization to Repurchase 10M (7.3% of outstanding) Shares; +0.3% afterhours
Notable movers by sector: - Consumer Discretionary: Sands China 1928.HK -2.2% (shareholder offers shares); Ajinomoto 2802.JP +2.0% (to use marine or rail shipping in long distance) - Consumer staples: Fonterra FCG.NZ +0.3% (announces payout prices) - Financials: Goodpack GPACK.SG +4.3% (KKR makes offer); China Vanke 000002.CN +1.1% (cuts price in Guangzhou) - Industrials: Shanghai Prime Machinery 2345.HK -3.6% (announces acquisition) - Technology: GRG Banking Equipment 002152.CN +10.0%, Guangzhou KingTeller Technology 002177.CN +10.0%, Inspur Electronic Information Industry 000977.CN +10.0% (China bans IBM servers in banks); Tencent Holdings 700.HK +1.4% (JD traded higher by over 14% today in US)