(Citi) Global Equity Strategist : Stock Screens for 2014

Global Equity Strategist : Stock Screens for 2014
* Best Stock Screens From Around The World — In this report we poll our equity strategy colleagues around the world for their preferred stock screens, which represent key investment themes for 2014. We also provide global versions.
* Back to Stock-Picking — Lower correlations and mid-cycle economic conditions typically help good stock-pickers generate shenzthe best returns. While increased emphasis on beta is understandable, we think alpha can become more important in 2014.
* Bullish With Cyclical Tilt — Citi strategists remain bullish, favouring cyclical/financial stocks over defensives. Their main themes include recovery, improving risk appetite, return of capital (de-equitisation) and releveraging.
* Return Of Capital And Releveraging — In the US and Japan our strategists think that return of capital is important. In the US they prefer share shrinkers and in Japan stocks with low RoE and strong balance sheets.
* Recovery and Risk Appetite — In Europe and EM, our strategists prefer cheap stocks with positive earnings momentum/revisions and exposure to risk.

(Citi) Sanofi : Proceed with Caution – Downgrade to Neutral

* Value or trap? Stepping aside, likely consensus downgrades — The onus on
Lantus (diabetes is 35-40% of group EBIT) to drive growth has risen given recent
pipeline/divisional disappointments. Despite assuming strong Lantus pricing in 2014
and growth post biosimilar entry in 2015, a €0.5bn cost savings programme being
announced at FY results and buybacks of €3bn per annum, our 2014-16 EPS
forecasts remain up to 9% below consensus. This reflects lower sales, mix
developments and FX. We downgrade 2013-20E EPS by up to 20%; 2014-19E EPS
CAGR of 8%, versus the sector on 10%. We set our target price in the middle of our
PE- (€68 = 12x 2015E vs sector’s 13x) and DCF-based (€83.50) valuation. Our
preferred Buys are Novartis, Roche, Novo and Bayer, and BMS in the US.

* Significant operating leverage unlikely — We forecast a 5-year sales CAGR of
3%. Gross margin analysis, coupled with expense guidance, points to EBIT margins
rising from 30% in 2014 to 31% in 2016 (32-34% longer term). We are up to 200-
300bps below consensus, and note the significant payaways to Regeneron on key
pipeline assets are not being properly reflected by cons. With the tax rate set to rise
we forecast a net income CAGR of just 5-6%, ex-buybacks. We introduce a webbased
Interactive Modelling Tool which offers the ability to flex key assumptions.

* Capital allocation decisions to consider — We estimate net debt at €7bn (<1x
EBITDA). Raising the Regeneron stake to >20% and recognising associate income
would cost €1bn and be 3% EPS accretive from 2015. Buying L’Oreal’s 9% stake
for €9bn could be 4-7% accretive from 2015, depending on buyback assumptions.
With Sanofi’s oncology franchise facing terminal decline we await information on
whether Ph I immunotherapy assets (CD19 and CD38) face accelerated
development, or external action is required to reestablish a presence.

* Ph III data in 2014 unlikely to move the needle — Positive data expected for
alirocumab (peak sales €1.3bn, NPV €2.5) but recent regulatory changes, and likely
reimbursement challenges, requires outcomes data (2018) to support aboveconsensus
forecasts. Ph III Dengue vaccine (NPV €1) data high-risk. With this note
we transfer coverage to Peter Verdult.

FT : McKesson finalises Celesio takeover

McKesson finalises Celesio takeover

The headquarters of Celesio AG stand in Stuttgart, Germany, in this undated handout photo released to the media on Thursday, Oct. 24, 2013. McKesson Corp., the largest U.S. pharmaceutical distributor, agreed to buy Germany's Celesio AG for about 3.9 billion euros ($5.4 billion) to boost its share of the growing global generic-drug market.©Bloomberg
McKesson, the US drug distributor, has won its hard-fought takeover of Celesio in a deal that values the German pharmaceutical group at $8.6bn, including debt.
McKesson said on Thursday evening that it had secured ownership of close to 75 per cent of Celesio’s shares after striking an agreement with German investment company Franz Haniel to acquire its stake.

The US group also confirmed it would buy convertible bonds in the company owned by Elliott Management, the New York hedge fund, which amount to about 8 per cent of Celesio’s stock.
The deals mean McKesson can now enter into a so-called domination and profit and loss transfer agreement with Celesio, allowing it to wrest control of Celesio and gain access to its cash flows.
McKesson did not disclose the terms of the deal with Elliott. However, people familiar with the situation said the drugs group had paid a “significant premium” for the convertible bonds.
The takeover was initially opposed by Elliott, which rapidly built a big position in Celesio while arguing McKesson’s initial €23-a-share offer was too low.
The hedge fund, which is growing in stature as one of America’s most energetic activist investors, eventually agreed to sell to Haniel last week when McKesson raised its bid to €23.50 a share.
“It is a fair assumption to make that Elliott would not have made so much noise about getting the price of the deal bumped by €0.50 if there was not a premium for the other part of the deal [purchase of convertible bonds],” said a person familiar with the structure of the agreement.
Haniel agreed to sell its stake to McKesson last October in a deal to create one of the world’s biggest pharmaceutical distribution groups. The family-owned group has been eager to broker a deal to sell Celesio as it looks to make fresh investments in Germany. The sale will leave German retail giant Metro as the largest holding in the Haniel portfolio.
Stephan Gemkow, chief executive of Haniel, said on Thursday that “the two companies are an excellent fit, and I wish them – and especially their employees – every commercial success.”
John Hammergren, chief executive of McKesson, said the increased scale and improved supply chain efficiencies would benefit his customers.

FT : Argentine peso plunges after central bank pulls support

Argentine peso plunges after central bank pulls support

Argentina’s peso suffered its biggest one-day fall since a 2002 financial crisis after the country’s central bank scaled back support for the currency in an effort to preserve foreign exchange reserves that have fallen by almost a third over the past year.
The fall accelerated a long-running decline since president Cristina Fernández replaced her economic team in November. The currency plunged around 15 per cent at one stage although thin liquidity made it difficult to gauge its true level.

The peso rallied in late trading to around 7.88 to the dollar – around 10 per cent down on the day, according to Bloomberg data. Argentine press suggested the central bank might have made late-stage intervention.
The latest levels are still at some distance from the black market rate that most Argentines use, which has weakened 28 per cent since the start of the year to stand at around 12.85 to the dollar on Thursday.
“The risk of capital flight is rising by the minute. This will be very hard to control,” wrote Dirk Willer, strategist at Citigroup, adding that liquidity had “largely disappeared” with the risk of Venezuela-style capital controls.
The peso’s fall added to increased risk aversion on global markets. By the close, the S&P 500 equity index lost 0.9 per cent, while the CBOE Vix volatility index – Wall Street’s so-called “fear gauge” – was up 7 per cent. Yields on 10-year Treasuries fell 8 basis points to 2.78, hitting their lowest levels since early December, as investors flocked to safer assets.
Across the Atlantic, the FTSE Eurofirst 300 fell 1.1 per cent while the Nikkei 225 in Tokyo shed 0.8 per cent.
The fall in the currency was probably hastened by a broader sell-off in emerging markets, with weak data from China’s manufacturing sector adding to concerns over the effects of the Federal Reserve’s tapering plans. Turkey’s central bank was forced to intervene to prop up the lira, and the South African rand, Brazilian real and Chilean peso also fell sharply.
Argentina first introduced currency controls a week after Ms Fernández was re-elected president by a landslide in 2011. Since then the government has redoubled efforts to restrict transactions in foreign currency.
On Wednesday, it imposed new restrictions on online shopping in its latest attempt to curb capital flight and prevent a possible balance-of-payments crisis.
Jorge Capitanich, the head of Argentina’s cabinet of ministers, told reporters on Thursday that the central bank had not bought or sold dollars the previous day, “which tells you what its position is with respect to the exchange rate”. Earlier in the week, he used his Twitter account to urge businesses to “produce and invest, rather than worrying about the illegal dollar”.
Foreign currency reserves, which fell to $29.26bn on Thursday, are now at a seven-year low as the government drains its coffers to service debt and pay for rising energy imports. The central bank sold $5.9bn propping up the peso last year.
The government’s overriding objective will be to prevent further erosion of reserves. But it now risks a steep depreciation that would fuel inflation – which unofficial estimates put at 28 per cent, more than double the official rate.
Siobhan Morden of Jefferies said: “This is not an administration that respects or understands market pressure. They have been in the early stages of currency crisis since December, and yet their main strategy has been to pay off arrears and try to attract foreign direct investment.”

Luis Secco, Buenos Aires economist, said: “It is hard to figure out what is the logic behind the authorities’ decision to let the peso fall so abruptly, without any other accompanying macroeconomic policy. It’s possible that the authorities would rather see a strong rise in the dollar than lose, again, a large quantity of reserves.
“It is a potentially dangerous situation . . . not least because it could give the impression that the authorities don’t have a very clear idea of how to manage the situation.”
Ricardo Delgado, director of local consultancy Analytica Consultora, said on Wednesday: “The government faces a dilemma. It wants to stop reserves from falling. But that means less imports and thus lower growth, as the economy is very dependent on imports. So the question is: do you want more growth, or higher foreign reserves?”
The perception among some investors is that Argentina’s government has been allowing the peso to depreciate at a faster rate over the past few months, because it wants to narrow the gap between official and black market exchange rates. High inflation has undermined Argentines’ trust in the currency.

November 2013: As President Cristina Fernández’s rule appears to be coming to an end, investors are hopeful this will spur economic reform.
“In an environment of negative emerging markets sentiment, Argentina is among the worst of the worst,” wrote analysts at Brown Brothers Harriman, arguing that with inflation well above interest rates of 21 per cent, and devaluation setting in, “one can easily see why nobody would want to hold pesos”.
Neil Shearing of Capital Economics said the Argentine central bank appeared to have bowed to the inevitable.
“They have pulled the plug. The cost of intervention has become too great,” he said.
Mr Shearing said the risk now was that, with Argentina’s foreign exchange reserves down to a seven-year low, Thursday’s move could turn into a disorderly devaluation in which the central bank would lose control of the currency.
“The big issue is a lack of clarity over government policy,” he said.
Ramón Aracena, chief economist for Latin America at the Institute of International Finance, said: “If you look at Argentina’s evolution in the last couple of years this situation was impending. I think the trigger is that the international reserves have reached a minimum level that the government is unwilling to breach.
“The problem is that a devaluation per se is not going to fix the underlying situation in Argentina: it would also need a tightening of fiscal and monetary policy.
“There is a risk this will actually lead to an acceleration of inflation in Argentina to 30 or 40 per cent depending on the rate of depreciation of currency and the policy response. There is no magic here.”
Analysts say the devaluation is unlikely to have an immediate impact on Argentina’s inflation rate as many imported goods are bought with dollars obtained on the “blue” parallel market.
The reaction on bond markets was muted, with the yield on Argentina’s 2033 dollar-denominated bond climbing from 13 per cent to 13.6 per cent. The cost of insuring against a default on Argentina debt in the next five years – as measured by the country’s credit default swaps – rose by 280 basis points to 2,336bp, a very high level by global standards.

(SG) UTilities : consequence of European climate change policies

Top picks Utilities trade at 13x 1-year forward P/E, in line with historical valuations, but
we argue a discount is warranted, as 75% of the sector index is made of generators
exposed to volatile (and we think declining) commodity prices. The yield is higher than
market average but is a trap: higher EPS volatility demands higher returns, in fact. Our top
picks are Gas Natural (Buy, TP €21) and EGPW (Buy, TP €2.2). We see limited upside for
SNAM in absolute terms, but we think it will do well in relative terms (Hold, TP €4.2).

>>> What to look at today : 24/01/2014

Us market closed lower pushed by mixed data in China...VIX @ 13.77 +7.25%....Volume Still light @ 650mil shares...Starbucks, eBay, Microsoft, Altera, KLAc, and Juniper all rally in extended session after earnings/guidance, but S&P futures remain under pressure as Thursday selloff reverberates in Asia....Shanghai Composite is the only regional index to trade higher, with 7-day
repo rate falling over 100bps in the wake of China liquidity injection this week; Nikkei225 leads the decliners with a 2.3% selloff in afternoon session, tracking firmer JPY....- Samsung Electronics trading up about 0.5% after reporting final Q4 results and forecasting solid demand in DRAM/NAND memory, better supply/demand conditions in LCD segment, and rising sales in TVs ahead of the world cup. Notably, Samsung also sees tighter competition in handsets and tablets, along with seasonality, leading to sequential declines in the mobile segment...Nikkei -1.94% Shamghai +0.60%


Eur$ 1.3680 S&P Fut unch European Fut+0.07%

Keep an eye on :
- Rating : Germany Credit Rating Affirmed at AAA at Fitch; Outlook Stable
- AKE FP : Arkema CEO Says Europe Will Finally Rebound, Les Echos Says
- ALO FP : Alstom Outlook Reduced to Negative From Stable by Moody’s
- ALO FP : Brazil Prosecutors Said to Seek Order Against Alstom
- CLS1 GGY : McKesson to Buy 75.99% of Celesio Shares Via New Agreements, to Offer Eur 23.50/Shr for Celesio
- HEN DC : Genmab Raises DKK998m, Places Shares in Middle of Range
- HOF LN : House of Fraserexclusive talks with French rival Galeries Lafayette came to an end / to float on LSE later on this year
- IBE SM : Iberdrola’s Chairman Says Doesn’t Need to Make Acquisitions
- KINVB SS : Capital Group Becomes Second-Largest Kinnevik Shareholder: DI
- LHA GY : Lufthansa Asks Court to Block Planned Union Strike, Bild Says
- MKS LN : Marks & Spencer Plans More Food Stores in Paris, Figaro Says
- NOVN VX : Novartis Seeks Re-Examination of Serelaxin for Heart Failure
- Poste Italiane : Italy Hopes to Get EU6b-EU8b From Poste Stake Sale, Letta Says
- RNO FP : Nissan, Renault to Merge Global Production, Nikkei Says
- RNO FP : Renault Sees Iran Car Market Surging 50% When Sanctions Lifted
- SCVB SS : Scania Wins Order for 220 Trucks From Austrian Haulier Nothegger
- TEF SM : Telefonica Renegotiating EU3b Syndicated Loan, Expansion Says
- TKA GY : Deutsche Bahn Seeks More ThyssenKrupp Compensation: Rheinische
- ZIGGO NA : Ziggo Says Liberty Global Talks Progressed; Dividend Delayed
- ZIGGO NA : Ziggo Says Mobile Subscriptions On Track, 4Q ARPU Up 5.5%

>>> Victoria Oil and Gas Unit, Gaz du Cameroun, signs Settlement Agreement with


Victoria Oil and Gas Unit, Gaz du Cameroun, signs Settlement Agreement with RSM Production Corporation in relation to the Logbaba gas project in Cameroon operated by GDC
- US$16.3m paid by RSM towards the cash call for expenses issued by GDC on 23 December 2013 with agreement for an audit to determine the final balance payable by or to be refunded to RSM.
- The audit will be undertaken by an independent auditor, jointly instructed in accordance with the terms of the Operating Agreement. The audit is to commence in Q1 of 2014 and be completed within 90 days.
- RSM's Emergency Application to the ICC and Third Arbitration Request have been withdrawn.
- The Notices of Default served by GDC on RSM have also been withdrawn.
- The 2014 Work Program and Budget have been deemed approved by RSM with RSM to pay its share of cash calls for 2014 in accordance with the parties' Operating Agreement upon completion of the audit.

>>> Brokers Upgrades & Downgrades - 24/01/2014

>>> Up
*DELHAIZE RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*KUONI REISEN RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*LEGRAND RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*RECORDATI RAISED TO BUY VS NEUTRAL AT GOLDMAN
*RUSAL RAISED TO NEUTRAL VS SELL AT GOLDMAN

>>> Down
*ABERDEEN ASSET CUT TO UNDERWEIGHT AT MORGAN STANLEY
*BRENNTAG CUT TO HOLD VS BUY AT KEPLER CHEUVREUX
*COMPASS GROUP CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*EDENRED CUT TO NEUTRAL VS BUY AT CITI
*GLAXOSMITHKLINE CUT TO HOLD VS BUY AT BERENBERG
*GLENCORE CUT FROM CREDIT SUISSE’S FOCUS LIST
*IVS GROUP CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*JARDINE CYCLE & CARRIAGE CUT TO SELL VS NEUTRAL AT GOLDMAN
*MELLANOX TECHNOLOGIES CUT TO UNDERWEIGHT AT BARCLAYS
*SAP CUT TO HOLD FROM BUY AT BERENBERG; PT CUT 10% TO EU64
*UNIBAIL-RODAMCO CUT TO UNDERWEIGHT AT MORGAN STANLEY
*VESTAS CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*WACKER CHEMIE CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*WHITBREAD CUT TO NEUTRAL VS BUY AT CITI

>>> PT Change
*Prada PT Cut 24% at Nomura as Consensus ‘Too Optimistic’

>>> Initiation
*BG RATED NEW HOLD AT KEPLER CHEUVREUX; PT 1,300P
*BP RATED NEW BUY AT KEPLER CHEUVREUX; PT 545P
*DOMINO PRINTING RATED NEW HOLD AT BERENBERG; PT 860P
*ENI RATED NEW BUY AT KEPLER CHEUVREUX; PT EU19.5
*OMV RATED NEW HOLD AT KEPLER CHEUVREUX; PT EU34
*REPSOL RATED NEW HOLD AT KEPLER CHEUVREUX; PT EU20
*SHELL RATED NEW BUY AT KEPLER CHEUVREUX; PT EU31
*STATOIL RATED NEW HOLD AT KEPLER CHEUVREUX; PT NOK150
*TT ELECTRONICS RATED NEW BUY AT BERENBERG; PT 247P
*UC RUSAL ASSUMED HOLD AT SOCGEN

>>> Call
>> Stock
*DAIRY CREST ADDED TO CONVICTION SELL AT GOLDMAN

NYT : Brevan Howard, Europe’s Largest Hedge Fund, Apologizes for Poor Results

Brevan Howard, Europe’s Largest Hedge Fund, Apologizes for Poor Results

For at least one hedge fund, sorry does not seem to be the hardest word.
Alan Howard, co-founder of Europe’s largest hedge fund, Brevan Howard Capital Management, apologized to investors in his year-end letter, calling its 2.6 percent return for 2013 “somewhat disappointing.”
“We are all fully aware that 2013 was a disappointing year in terms of returns and we are determined to deliver a more satisfactory outcome for 2014,” he wrote in his annual letter. Its performance stands in stark contrast to the returns on the Standard & Poor’s 500-stock index, which was up almost 30 percent last year.
Brevan Howard’s focus is not stocks but currencies and interest rates (though it trades in many asset classes). HFR indexes for global macro were down 0.22 percent and 0.75 percent.
The year was particularly painful for the Brevan Master Fund, the company’s flagship fund, which had notched a 13 percent performance through the end of May, according to The Wall Street Journal. But interest rate trading, one of the firm’s main focuses, proved a tough slog and helped bring the year’s returns down significantly, the letter said.
Mr. Howard said the fund traded on three broad themes: Japan’s recovery (long Japanese equity indexes and short the yen), a bet on the United States recovery (long the dollar compared with a basket of other currencies) and a bet that Europe would have to cut rates further to deal with disinflation. He said the first two strategies made money but the third did not.
The Master Fund started trading in 2003 and has never incurred a loss. In 2008, it returned 20.32 percent against a backdrop of carnage in the markets during the financial crisis, when the S.&P. 500 sank 38.5 percent. The firm is known for solid risk management and not swinging from the chandeliers.
Though 2013 ended badly, it started on a high note. “We are more optimistic about the opportunity set for macro trading now than we have been for some time,” he wrote at the end of last year.

>>> Asian Update

Asian Market Update: Regional indices sell off, while Shanghai Composite remains supported by the latest PBoC injection; AUD plummets on RBA's Ridout comments

***Economic Data*** - (US) NORTH AMERICA DEC SEMI BOOK/BILL RATIO: 1.02 V 1.11 PRIOR (3rd straight month above parity) - (NZ) NEW ZEALAND DEC CREDIT CARD SPENDING M/M: -1.2% V +3.5% PRIOR; Y/Y: 4.7% V 6.9% PRIOR - (SG) SINGAPORE DEC INDUSTRIAL PRODUCTION M/M: 5.2% V 0.5%E; Y/Y: 6.2% V -1.4%E - (PH) PHILIPPINES NOV TRADE BALANCE: -$944M V -$700ME - (VN) Vietnam Jan Consumer Price Index (CPI) M/M: 0.7% v 0.5% prior; Y/Y: 6.8% v 6.1%e - (VN) Vietnam Jan Trade Balance: -$100M v +$548M prior

***Observations/Insights*** - Starbucks, eBay, Microsoft, Altera, KLAc, and Juniper all rally in extended session after earnings/guidance, but S&P futures remain under pressure as Thursday selloff reverberates in Asia. - Shanghai Composite is the only regional index to trade higher, with 7-day repo rate falling over 100bps in the wake of China liquidity injection this week; Nikkei225 leads the decliners with a 2.3% selloff in afternoon session, tracking firmer JPY. - Samsung Electronics trading up about 0.5% after reporting final Q4 results and forecasting solid demand in DRAM/NAND memory, better supply/demand conditions in LCD segment, and rising sales in TVs ahead of the world cup. Notably, Samsung also sees tighter competition in handsets and tablets, along with seasonality, leading to sequential declines in the mobile segment. - RBA's Ridout comments torpedo the Aussie below the $0.87 handle; 3 1/2 year AUD/USD lows.

***Fixed Income/Commodities/Currencies*** - (US) Weekly Fed Balance Sheet Total Assets Week ending Jan 22nd: $4.10T v $4.07T prior; Reserve Bank Credit: $4.05T v $4.03T prior; M1 y/y change: 8.4% v 8.6% w/w; M2 y/y change: 5.8% v 5.9% w/w - (AU) Australia MoF (AOFM) sells A$800M in 4.75% 2027 Bonds; avg yield: 4.3331%; bid-to-cover: 2.12x - (JP) BOJ offers to buy ¥250B in 1-3yr JGB, ¥250B in 3-5yr JGB and ¥200B in JGB with maturity over 10-yr as well as ¥2.5T in T-bills outright - USD/CNY: China 7-day repo rate opens at 4.0% v 5.4% previous close (sharpest slide in a month) - USD/CNY: (CN) PBoC sets yuan mid point at 6.1035 v 6.1107 prior setting (strongest Yuan setting since Jan 14th)

- Regional currencies traded in narrow ranges during the morning session, but volatility picked up across the board in the afternoon as RBA Board member Ridout called for AUD/USD to fall as low as $0.80 to achieve a "fair deal" for the economy. AUD/USD fell over 50pips on the comments below the $0.87 handle - a fresh 3.5-year low - while NZD/USD was down over 30pip on the comments and nearly 50pips on the day below $0.8260. AUD/JPY and NZD/JPY hit 4-month and 1-month lows below ¥89.90 and ¥85.30 respectively. The key dollar majors USD/JPY and EUR/USD were rangebound - Yen was in a 40pip range around 103.40 and EUR backed away from the $1.37 handle below $1.3680.

***Speakers/Political/In the Papers*** - (AU) Reserve Bank of Australia (RBA) board member Ridout: AUD has not fallen enough; AUD at $0.80 is fair deal for the economy - financial press interview - (CN) China vice Commerce Minister Fang: sees 2014 China retail sales +13.0% y/y v +13.1% y/y in 2013 - (CN) China National Development and Reform Commission (NDRC) to maintain basic stability of general price level in 2014 - Chinese press - (CN) China State Administration of Foreign Exchange (SAFE): China banks bought net of $31.1B of total forex in Dec; China faces pressure from capital inflow - financial press - (CN) China Foreign Minister Wang Yi: Japan PM Abe's remarks in Davos on Yasukuni shrine visit is unacceptable - financial press - (JP) Current account deficit in Japan may persist, as weak JPY may be less effective in boosting exports amid soft external demand - Nikkei - (JP) Japan Fin Min Aso: Deflationary conditions have nearly ended in Japan; Must consider overall perspective for corporate tax cut - (JP) Japan Econ Min Amari: Sees recovery in Japan to continue in FY14 - (KR) Bank of Korea (BOK) Gov Kim: 3.8% GDP target for 2014 is a "reasonably good" estimate; Further decrease in yen could hurt South Korean exporters - financial press - (SG) Singapore FY13 private home sales 14.9K units v 22.2K y/y, private home prices +1.1% y/y v 2.8% y/y in 2012; Q4 home prices saw first q/q decline since Q1 of 2012 - financial press - (NZ) New Zealand Fin Min English: Remain on track for a surplus in 2014/2015 despite challenges

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -1.9%, S&P/ASX -0.2%, Kospi -0.8%, Shanghai Composite +0.9%, Hang Seng -0.7%, Mar S&P500 +0.2% at 1,826, Apr gold -0.2% at $1,260, Mar crude oil +0.2% at $97.55/brl

US markets: - FTNT: To be added to S&P400 following the close of Jan 28th; +3.9% afterhours - JNPR: Reports Q4 $0.43 v $0.37e, R$1.27B v $1.22Be; Jana Partners, one of the largest shareholders in Juniper, also said to recommend new board members, cost cuts, capital returns; +3.6% afterhours - MSFT: Reports Q2 $0.78 v $0.67e, R$24.5B v $23.5Be; CFO: no comment on the search for a new CEO and will not provide an update on the conf call today; Exec: Sees FY capex at $6B vs $6.5 prior; sees Q3 D&C Hardware $1.9-2.0B - conf call; +3.5% afterhours - ALTR: Reports Q4 $0.31 v $0.30e, R$454.4M v $442Me; +3.3% afterhours - ENDP: Announce Positive Top-Line Results with BioDelivery Sciences from the Phase III Clinical Trial of BEMA Buprenorphine; +2.5% afterhours - SBUX: Reports Q1 $0.71 v $0.69e, R$4.24B v $4.30Be; CEO: Sees opportunity for more drive-thru stores in the US - conf call; +1.1% afterhours - KLAC: Reports Q2 $0.85 (adj) v $0.79e, R$705M v $712Me; Guides Q3 $1.00-1.20 v $1.06e, R$790-850M v $803Me - conf call; +0.7% afterhours - SHOR: Reports Q2 $0.05 v $0.04e, R$84.5M v $83.2Me; -1.5% afterhours - ISRG: Reports Q4 $4.28 v $3.79e, R$576M v $551Me; ISRG: Will not provide FY14 revenue guidance at this time; expect to sell fewer systems this year than the 546 sold last year - conf call; -4.6% afterhours

Notable movers by sector: - Consumer Discretionary: FAW Car 000800.CN +1.2% (FY13 results); Jiangling Motors 000550.CN +0.7% (prelim FY13 results); Great Wall Motor 2333.HK -0.1% (prelim FY13 results) - Financials: Haitong Securities 6837.HK +0.2% (prelim FY13 result) - Technology: Samsung Electronics 005930.KR +0.5% (final Q4 results); Wangsu Science & Technology 300017.CN +10.0% (FY13 guidance; proposes special dividend); Acer Inc 2353.TW +1.1% (launches smartphone) - Energy: Sinopec Yizheng Chemical Fibre 1033.HK -3.8% (FY13 guidance); Sinopec Shanghai Petrochemical 338.HK +4.2% (FY13 guidance) - Industrials: Kia Motors 000270.KR -1.7% (Q4 report); Hyundai Motor 005380.KR -3.0% (Q4 results); Gem-Year Industrial 601002.CN +2.1% (FY13 guidance); Nippon Shokubai 4114.JP -1.3% (9M results) - Utilities: Yaskawa Electric 6506.JP -6.5% (9M results)