>>> BRokers Upgrades & Downgrades - 30/04/2014

>>> Up
*DATRON RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*DEUTSCHE TELEKOM RAISED TO BUY AT JEFFERIES
*MICRO FOCUS RAISED TO BUY VS ADD AT NUMIS
*NATIONAL BANK OF GREECE RAISED TO NEUTRAL AT MEDIOBANCA
*NORDEA RAISED TO BUY AT SEB
*ORANGE RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*PREMIER FOODS RAISED TO NEUTRAL VS SELL AT UBS
*SWISS RE RAISED TO OVERWEIGHT AT MORGAN STANLEY
*SYMRISE RAISED TO BUY VS NEUTRAL AT GOLDMAN
*WIRECARD RAISED TO BUY VS HOLD AT BANKHAUS LAMPE

>>> Down
*ARM HOLDINGS CUT TO NEUTRAL VS BUY AT CITI
*ABB CUT TO NEUTRAL VS BUY AT BOFAML
*MUNICH RE CUT TO EQUALWEIGHT AT MORGAN STANLEY
*SERCO CUT TO SELL VS NEUTRAL AT GOLDMAN
*UMICORE CUT TO HOLD FROM BUY AT ING

>>> PT Changes
*AMPLIFON PT RAISED TO EU4.7 VS EU4.1 AT CITI; KEPT AT NEUTRAL
*UMICORE PT CUT TO EU35 FROM EU37 AT ING
*Whitbread PT Raised to 4,500p vs 3,700p at Raymond James

>>> Initiation
*ARYZTA REINITIATED AT BUY AT KEPLER CHEUVREUX; PT CHF90

>>> Call
>> Stock
*KRONES, LEGRAND REMOVED FROM UBS’S MOST PREFERRED LIST

RTR - Sanofi explores $7 billion-plus drug divestiture - sources

Sanofi explores $7 billion-plus drug divestiture - sources {http://reut.rs/1krLo6k}
(Reuters) - Sanofi SA is looking to sell a portfolio of mature drugs that could fetch between $7 billion and $8 billion, according to people familiar with the matter, yet another example of drugmakers trying to shed non-core assets and focus on high-growth areas.

The French pharmaceutical company is working with Evercore Partners Inc and has contacted potential buyers in the past few months, the people said on Tuesday, asking not to be named because the matter is private.

The drugs for sale include treatments for high blood pressure and cardio-metabolic diseases and have roughly $3.7 billion in combined annual revenue, one of the people said. The portfolio could fetch up to two times that amount, the person added.

Generic drugmakers and specialty pharmaceutical companies are seen as logical buyers for the Sanofi drug portfolio, said the people familiar with the matter.

Sanofi could not be immediately reached for comment, while Evercore declined to comment.

FT : BoJ defies calls for additional easing

BoJ defies calls for additional easing

Bank of Japan Gov. Haruhiko Kuroda heads to a meeting at the headquarters of Bank of Japan in Tokyo, Wednesday, April 30, 2014. Japan's central bank was meeting Wednesday to assess the status of the country's economic recovery, as monthly data showed industrial output and wage growth falling short of expectations.©AP
The Bank of Japan kept its policy settings on hold on Wednesday, defying calls from some quarters to take additional action to offset the impact of Japan’s rise in consumption tax, the first in 17 years.
At the one-day monetary policy meeting, the second in April, the BoJ elected to keep buying as many long-term government bonds as necessary to pump up the monetary base at an annual pace of about Y60-70tn ($586bn-$684bn), in pursuit of its 2 per cent target for inflation.

Attention now switches to the bank’s outlook for economic activity and prices, to be published at 3pm on Wednesday.
In January, the BoJ projected that core consumer price inflation would average 1.3 per cent in the current fiscal year beginning in April, as the index heads towards 2 per cent in the latter half of the year.
Should the BoJ revise up to 1.5 per cent or higher, it would imply that it is not anticipating much of a slump in CPI in the wake of the tax increase, which took effect on April 1. But if it leaves the forecast unchanged or moves to 1.4 per cent, it could signal to the market that it is expecting CPI to dip – perhaps strengthening expectations of another shot of easing in coming months.
BoJ governor Haruhiko Kuroda has made no substantive changes to the size or the scale of the bank’s easing programme – dubbed “qualitative and quantitative easing,” or QQE – since it was set out in April 2013.
Yet some economists and advisers to Shinzo Abe, prime minister, have argued that extra measures are needed to insulate the economy against the impact of the tax rise, the first of two increases designed to narrow Japan’s vast budget deficit.
Recent data suggests that the world’s third-largest economy is experiencing a slowdown. The Markit/JMMA purchasing managers’ index, also released on Wednesday, showed that manufacturers’ output dipped below 50 in April – signifying contraction – for the first time since February 2013.
New export orders also dropped to the lowest levels in more than a year. That could be a particular concern for the government, which had been counting on an improved trade picture to offset a drop in consumer demand after the tax rise.
Economists currently expect real gross domestic product in Japan to shrink by an annualised 3.4 per cent in between April and June, before resuming growth of 2 per cent in the third quarter and 1.7 per cent in the last three months of 2014.

>>> Asian Update

Asian Market Update: BOJ unanimous in keeping policy unchanged, market awaits outlook on growth/inflation; Japan wage inflation accelerates while manufacturing slumps

***Economic Data*** - (JP) BANK OF JAPAN (BOJ) POLICY STATEMENT: REITERATES TO INCREASE MONETARY BASE AT ANNUAL PACE OF ¥60-70T (AS EXPECTED) - (JP) JAPAN MAR LABOR CASH EARNINGS Y/Y: 0.7% V 0.1%E (two years high) - (JP) JAPAN APR MARKIT/JMMA MANUFACTURING PMI: 49.4 V 53.9 PRIOR (1st contraction in 14 months) - (JP) JAPAN MAR VEHICLE PRODUCTION Y/Y: 14.0% V 7.1% PRIOR - (JP) JAPAN MAR PRELIM INDUSTRIAL PRODUCTION M/M: 0.3% V 0.5%E, Y/Y: 7.0% V 7.2%E - (AU) AUSTRALIA MAR PRIVATE SECTOR CREDIT M/M: 0.4% V 0.4%E; Y/Y: 4.4% V 4.5%E - (NZ) NEW ZEALAND MAR MONEY SUPPLY M3 Y/Y: 5.0% V 6.9% PRIOR - (NZ) NEW ZEALAND APR ANZ ACTIVITY OUTLOOK: 52.5 V 58.2 PRIOR; ANZ BUSINESS CONFIDENCE: 64.8 V 67.3 PRIOR - (NZ) NEW ZEALAND MAR BUILDING PERMITS (incl apartments) M/M: 8.3% V 2.0%E - (KR) SOUTH KOREA MAR INDUSTRIAL PRODUCTION M/M: 0.9% V 1.0%E; Y/Y: 2.7% V 3.7%E - (KR) SOUTH KOREA MAR CYCLICAL LEADING INDEX CHANGE Y/Y: -0.3% V -0.1% PRIOR - (KR) SOUTH KOREA MAY MANUFACTURING BUSINESS SURVEY: 86 V 86 PRIOR; NON-MANUFACTURING SURVEY: 74 V 73 PRIOR - (SG) SINGAPORE MAR MONEY SUPPLY M1 Y/Y: 6.9% V 7.8% PRIOR; M2 Y/Y: 2.0% V 2.4% PRIOR - (SG) SINGAPORE MAR CREDIT CARD BAD DEBTS: 21.8M V 19.8M PRIOR; CREDIT CARD BILLINGS: 3.7B V 3.1B PRIOR - (SG) SINGAPORE Q1 PRELIM UNEMPLOYMENT RATE: 2.1% V 1.8%E - (TW) TAIWAN Q1 PRELIM GDP Y/Y: 3.0% V 3.0%E

Market Snapshot (as of 03:30 GMT): - Nikkei225 +0.2%, S&P/ASX -0.1%, Kospi +0.1%, Shanghai Composite +0.1%, Hang Seng -1.1%, Jun S&P500 -0.1% at 1,869, Jun gold -0.2% at $1,294, Jun crude oil -0.8% at $100.47/brl

***Highlights/Observations/Insights*** - Top-tier names reporting results after the close of the US trading session are all trading down, boding poorly for "momentum stocks" ahead of the Wednesday open. Arguably the most high-profile company to post Q1 was Twitter, falling over 11% afterhours despite doubling its revenue and also raising its guidance for FY revenue. Investors were largely disappointed with the 25% user growth despite the upbeat management commentary, sending shares below its all-time lows around $38/shr. eBay beat on top and bottom line but booked a $6B charge and also guided Q2 EPS below consensus. Seagate is down modestly in extended session as revenue missed marginally, while the conference call guidance of at least $3.30B v $3.37Be was seen as somewhat conservative.

- A broad set of economic data from Japan painted a mixed picture going into the crucial BOJ update on inflation and growth projections and subsequent commentary by Gov Kuroda after Tokyo close. Labor cash earnings - a closely covered gauge of consumer "cost-push" inflation intended to lead to higher salaries - finally accelerated at a 2-year high rate, giving cabinet officials the strongest evidence of a "virtuous cycle" engineered by the ultra-aggressive Abenomics policies. The more recent Markit manufacturing PMI figure for April disappointed however, falling into its 1st contraction in over a year. Both Output and New Export Orders subindices were also in contraction, with some of the slowdown likely anticipated by the higher sales tax. - BOJ policy decision contained no update on economic assessment or accompanying statement, which is typical on the day when the central bank announces its Semiannual Outlook for Economic Activity and Prices. In another unanimous decision, BOJ maintained its annual pace of monetary base increase at ¥60-70T.

- A report from China Academy of Social Sciences offered a more cautious forecast for 2014 GDP of 7.4% than the official govt and the most recent IMF target of 7.5%. A separate note from CASS researcher warned growth could slow to as low as 7.0%. Also of note, Xinhua press citing vice premier Ma reported policymakers may struggle to complete rail construction goal in 2014.

***Fixed Income/Commodities/Currencies*** - (AU) Australia MoF (AOFM) sells A$700M in 3.25% 2025 Bonds; avg yield: 4.0311%; bid-to-cover: 4.87x - SLV: iShares Silver Trust ETF daily holdings fall to 10,178 from 10,282 tonnes (first decline since Apr 2nd) - (US) API PETROLEUM INVENTORIES: CRUDE: +3M (4th consecutive build) v +2Me, GASOLINE: -50K v -0.5Me, DISTILLATE: +690K v +0.5Me - USD/CNY: (CN) PBoC sets yuan mid point at 6.1580 v 6.1556 prior setting (1st weaker CNY setting in 6sessions)

***Equities*** US markets: - RFMD: Reports Q4 $0.12 v $0.10e, R$256M v $251Me; +6.6% afterhours - CHRW: Reports Q1 $0.63 v $0.62e, R$3.14B v $3.20Be; +3.6% afterhours - FISV: Reports Q1 $0.82 v $0.74e, R$1.23B v $1.21Be; +3.1% afterhours - MAR: Reports Q1 $0.57 v $0.51e, R$3.29B v $3.29Be; 200K rooms in pipeline +35% y/y; +1.2% afterhours - RVBD: Reports Q1 $0.24 v $0.23e, R$266M v $265Me; -0.8% afterhours - STX: Reports Q3 $1.34 v $1.26e, R$3.41B v $3.42Be; Guides Q4 Rev at least $3.3B v $3.37Be; GM about 28.0% v 28.5% q/q; Unit demand to be down a few pts - conf call; -0.9% afterhours - X: Reports Q1 $0.34 v $0.34e, R$4.45B v $4.58Be; -2.1% afterhours - ACE: Reports Q1 $2.27 v $2.13e, R$3.97B v $4.14Be; -2.3% afterhours - EBAY: Reports Q1 $0.70 v $0.67e, R$4.26B v $4.22Be; takes charge to repatriate $6B in foreign earnings; -4.3% afterhours - PNRA: Reports Q1 $1.55 v $1.52e, R$605M v $601Me; -4.4% afterhours - ESRX: Reports Q1 $0.99 v $1.01e, R$23.7B v $23.5Be; -5.6% afterhours - USNA: Reports Q1 $1.15 v $1.31e, R$182.4M v $187Me; Share Repurchase Authorization increased to $200M (18% of market cap); -7.0% afterhours - TTS: Reports Q1 $0.09 v $0.12e, R$64.4M v $68.0Me; -7.1% afterhours - TWTR: Reports Q1 $0.00 v -$0.03e, R$250M v $237Me; -11.2% afterhours - VPRT: Reports Q2 $0.24 v $0.59e, R$286.2M v $310Me; -15.8% afterhours - AUXL: Cuts FY14 Net guidance to loss $15M to flat vs $45-50M prior, cuts Rev guidance to $380-420M v $483Me ($450-490M prior); -21.6% afterhours

Notable movers by sector: - Consumer staples: Woolworths Ltd WOW.AU -2.4% (Q3 results); Inner Mongolia Yili Industrial Group 600887.CN +6.2% (FY13 results) - Consumer discretionary: Alps Electric 6770.JP +4.4% (FY13/14 results) - Financials: China CITIC Bank 998.HK -1.7% (Q1 results); CITIC Securities 6030.HK -1.7% (Q1 results); ICBC 1398.HK -1.3% (Q1 results); Bank of Communication 3328.HK -1.4% (Q1 results); Shanghai Pudong Development Bank 600000.CN +0.8% (plans to issue preferred shares) - Materials: Aluminum Corp of China 2600.HK -1.7% (Q1 results); Shandong Chenming Paper Holdings 1812.HK -5.8% (Q1 results); Nippon Steel & Sumitomo Metal Corp 5401.JP +1.1% (speculation on FY13/14 results); Tokuyama 4043.JP -2.8% (FY13/14 results); Sanyo Chemical 4471.JP -2.8% (FY13/14 results) - Energy: China Oilfield Services 2883.HK -1.8% (Q1 results) - Technology: Alpine Electronics 6816.JP -5.7% (FY13/14 results) - Industrials: China State Construction Engineering 601668.CN +1.0% (Q1 results); China Railway Corp 390.HK -1.1% (Q1 results) - Healthcare: Shanghai Fosun Pharmaceutical 2196.HK +2.8% (Q1 results) - Utilities: Huadian Power International 1071.HK +3.2% (Q1 results)

>>> US After Hours

After Hours Summary: GFIG +27.8%, LOGM +12.5%, GPRE +8.7%, VPRT -14.2%, POWI -12.7%, TWTR -11.1% following earnings.guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: GFIG +27.8%, LOGM +12.5%, GPRE +8.7%, RFMD +5.8%, AZPN +5.6%, MWA +5.2%, ANIK +3.4%, NUVA +3.2%, TRN +3.1%, RNG +2.6%, GMED +2.2%, CVTI +1.7%, HURN +1.5%, SYX +1.4%, DLB +1.4%, CMRE +1.2%, CNQR +1.1%, EZPW +1.1%, KTCC +0.9%, EIX +0.5%, HF +0.5%, BXMT +0.4%, GNW +0.4%, NFX +0.3%, PLT +0.1%

Companies trading higher in after hours in reaction to news: - STRP +20.8% (co disclosed its subsidiary entered into a confidential license agreement with Google), - OPTT +9.6% (FiveMore Special Situations Fund discloses 6.72% stake in SC 13D filing), - TRIV +8.3% (announced FDA-approved expansion of Ovation and Ovation Prime indication statements), - NUVA +3..2% (announced Michael Lambert intends to retire from his role as CFO later this year and that Quentin Blackford, its current Executive Vice President of Finance, Accounting and Investor Relations, will succeed Mr. Lambert; co also reported earnings), - LRCX +2.6% (initiated quarterly dividend of $0.18 per share; announced $850 mln share repurchase authorization), - NVTL +1.7% (announced agreement with investor group, under which Dr. Richard Karp and Alex Mashinsky have been immediately appointed to the co's board of directors), - FHN +1.0% (reached settlement with FHFA; lawsuit begun in 2011 will be dismissed against all defendants)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: VPRT -14.2%, POWI -12.7%, TWTR -11.1%, FEIC -9.4%, TTS -7.1%, USNA -7%, NDLS -6.1%, ESRX -5.6%, CTIC -5.2%, PNRA -5.1%, EBAY -4.5%, NCR -4.1%, NANO -4.1%, ACE -2.3%, AUY -2.2%, DWA -1.4%, TRLA -1.3%, STX -0.9%, XCO -0.8%, RVBD -0.8%, CRAY -0.7%, VNR -0.5%, WSH -0.5%, AMC -0.2%, OHI -0.2%, BSAC -0.2%, REXX -0.1%, SWI -0.1%, ACMP -0.1%

Companies trading lower in after hours in reaction to news: - HDS -3.4% (announced secondary offering of ~30 mln shares of the co's common stock by selling stockholders), - AUY -2.4% (announced results of the Cerro Moro Feasibility Study: Annual production of 150,000 gold equivalent ounces for the life of mine; co also reported earnings), - SSW -0.8% (filed for 3,633,340 Class A common share offering by selling securityholders)

>>>> eBay beats by $0.03, reports revs in-line; guides Q2 EPS below consensus, r

eBay beats by $0.03, reports revs in-line; guides Q2 EPS below consensus, revs in-line; reaffirms FY14 EPS guidance, revs guidance 

Reports Q1 (Mar) earnings of $0.70 per share, $0.03 better than the Capital IQ Consensus Estimate of $0.67; revenues rose 13.7% year/year to $4.26 bln vs the $4.22 bln consensus.
PayPal net total payment volume (TPV) grew 27% with Merchant Services volume up 32% and on-eBay volume up 15%. Revenue grew to $1.8 billion. PayPal gained 5.8 million new active registered accounts to end the quarter at 148 million, up 16%.
eBay Marketplaces gross merchandise volume (GMV) grew 12%, with the U.S. up 11% and International up 13%. Revenue grew to $2.2 billion. Marketplaces gained 4.7 million new buyers to end the quarter with 145 million active buyers, up 14%.
Co issues mixed guidance for Q2, sees EPS of $0.67-0.69, excluding non-recurring items, vs. $0.70 Capital IQ Consensus Estimate; sees Q2 revs of $4.325-4.425 bln vs. $4.39 bln Capital IQ Consensus Estimate.
Co reaffirms guidance for FY14, sees EPS of $2.95-3.00, excluding non-recurring items, vs. $2.99 Capital IQ Consensus Estimate; sees FY14 revs of $18.0-18.5 bln vs. $18.25 bln Capital IQ Consensus Estimate.