+------------------------------------------------------------------------------+
Buy Rhoen-Klinikum, Fresenius SE Deal Should Close Soon: Equinet 2013-12-12 08:32:13.94 GMT
By Gaurav Panchal Dec. 12 (Bloomberg) -- Equinet says good chance for a closing of hospital portfolio deal with Fresenius SE within next 2 weeks to be a +10% share price trigger vs. limited downside risk. * A good chance for a cartel office approval within the next 2 weeks: Equinet * Even if approval is delayed until Feb., there is only limited downside: Equinet * Says discount of 18% on Rhoen FV quite pronounced, strategic buyer B. Braun seeks to further increase its >15% stake * Reiterates buy, PT EU23.6 * Nov. 27: Fresenius SE confirms original timeline on Rhoen deal closing {NSN MWX8DW6JTSEP <go>} * Fresenius had said majority of transaction would close by year-end
Link to Company News:{RHK GR <Equity> CN <GO>} Link to Company News:{FRE GR <Equity> CN <GO>}
For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}
To contact the editor responsible for this story: Gaurav Panchal at +44-20-7392-0511 or gpanchal2@bloomberg.net
m Asian Market Update: RBNZ shifts to a tightening bias; Facebook shares spike upon joining S&P500 Thu, 12 Dec 2013 0:53 AM EST
***Observations/Insights*** - Asian equities continued to lose ground amid speculation that the Fed could begin to scale back its stimulus measures sooner than later. Despite the declines in the US markets, the S&P announced that Facebook was set to replace Teradyne in the S&P 500 index at the close of trading on Dec 20th. Shares of Facebook closed at $49.38 -1.7%, but rose to a high of 52 +5.3% in after-hours trading on the news. - The NZD strengthened on hawkish tones out of the RBNZ after it left the official cash rate at 2.50% (as expected). The central bank said that it would increase the cash rate as needed to maintain average inflation near 2% target midpoint. It had previously stated that a rate hike will likely to be needed next year. - The Australian jobless rate increased to a three-month high of 5.8% for November despite a rise in job numbers with the participation rate steady at 64.8%, the lowest level since October 2006. AUD was briefly higher following a November employment change reading of 21.0k beating expectations, but it quickly reversed gains on risk-aversion and expectations of Fed tapering. - South Korean market fell after the Bank of Korea left its 7-day repo rate steady at 2.50%, as widely expected. Increased volatility in the yen continued to pose considerable risk to the domestic economy.
***Economic Data*** - (NZ) NEW ZEALAND CENTRAL BANK (RBNZ) LEAVES OFFICIAL CASH RATE UNCHANGED AT 2.50%, AS EXPECTED - (AU) AUSTRALIA NOV EMPLOYMENT CHANGE: +21.0K V +10.0KE (7-month high); UNEMPLOYMENT RATE: 5.8% V 5.8%E - (AU) AUSTRALIA DEC CONSUMER INFLATION EXPECTATION: 2.1% V 1.9% PRIOR (4-month high) - (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 2.50% (AS EXPECTED); (7th straight pause) - (JP) JAPAN NOV TOKYO AVERAGE OFFICE VACANCIES: 7.5 V 7.6 PRIOR - (AU) AUSTRALIA OCT CREDIT CARD BALANCES (A$): 48.9B V 48.8B PRIOR; CREDIT CARD PURCHASES: 23.0B V 22.0B PRIOR - (NZ) NEW ZEALAND NOV FOOD PRICES M/M: -0.2% V -1.0% PRIOR - (NZ) NEW ZEALAND REINZ NOV HOUSE PRICE INDEX: 3,885 V 3,839 PRIOR; M/M: 1.2% V 1.6% PRIOR; HOUSE SALES Y/Y: -6.6% V +2.1% PRIOR - (JP) Japan investors bought net ¥413.2B in foreign bonds last week vs bought net ¥65.5B in prior week (9th straight week of net purchases); Foreign Investors bought net ¥113.8B in Japan stocks v bought net ¥368.7B in prior week
***Fixed Income/Commodities/Currencies*** - JGB: (JP) Japan's MoF sells ¥2.50T in 0.2% (0.2% prior) 5-yr notes; Avg yield: 0.197% v 0.193% prior; Bid to cover: 4.43x v 5.03x prior - (CN) China National Petroleum Corporation (CNPC) researcher: China natural gas price may rise 77% by 2015; Sees China oil demand to rise 2.5%/yr in 2013-2020 - Chinese press - (CN) China Qinhuangdao coal price rises to CNY605-615/t (9th consecutive rise; highest since mid-June) - (CN) China Iron and Steel Association (CISA) plans to introduce daily price index for imported iron ore in early 2014 - Chinese press - GLD: SPDR Gold Trust ETF daily holdings fall 2.1 tonnes to 833.6 tonnes (lowest since Jan 2009) - SLV: iShares Silver Trust ETF daily holdings fall to 10,208 tonnes (lowest since July 15) from 10,304 tonnes
***Speakers/Political/In the Papers*** - (JP) Japan Pension Fund (GPIF) panel head Ito: Govt should decide on independence of GPIF - (JP) Japan PM Abe cabinet set to approve ¥5.5T extra budget for stimulus measures - Japanese press - (JP) Japan to increase total defense spending to ¥24.4T over the next 5-yr mid-term Defense Program - Kyodo News - (JP) Japan megabanks to allow overseas credit card users to access cash at ATMs - Japanese press
- (CN) China to sell second tranche CNY15B of negotiable certificates of deposits (NCD) for 5 banks on Friday Dec 13th, 2014 - financial press - (CN) PBoC won't conduct open market operations (OMO) in today's session (3rd consecutive session of halted operations); Drains CNY37B this week v drained CNY47B prior (2nd week of net drain) - (CN) China Finance Ministry announces import, export duty adjustments, effective Jan 1st; Over 760 imported goods to be affected
- (NZ) RBNZ Gov Wheeler: Rate must rise by 225bps over the next 2 1/4 year; RBNZ serious about containing inflation - press conf - (NZ) RBNZ Gov Wheeler: RBNZ concerned about house prices; Auckland house price gain is unhealthy - address at Finance and Expenditure Committee - (AU) New South Wales (NSW) announces deficit wider than prior forecast
- (ID) Fitch: Indonesia residential property faces near-term headwinds - (VN) Moody's: Firmer macroeconomic stability supports Vietnam sovereign rating - (TH) Moody's: Thailand political crisis is credit Negative
- (UK) British Chambers of Commerce (BCC): Raises 2013 GDP forecast to 1.4% from 1.3% prior forecast, Raises 2014 GDP to 2.7% from 2.2% prior forecast - (EU) ECB may put in place stricter regulations on sovereign bonds - FT citing ECB's Praet - (EU) EU negotiators said to have reached provisional agreement to impose possible losses on shareholders, bondholders, savers on failing banks form Jan 2016 - financial press - (IT) Italy Govt of PM Letta wins confidence vote in the Senate; as expected
- (US) House panel has cleared bipartisan budget deal for full house vote this week; vote may occur Thursday - financial press
***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -1.4%, S&P/ASX -1.3%, Kospi -0.7%, Shanghai Composite -0.1%, Hang Seng -0.5%, Dec S&P500 -0.2% at 1,777, Feb gold -0.2% at $1,255, Jan crude oil -0.1% at $97.36/brl
US markets: - HLT: Prices 117M share IPO at $20/shr (as expected) - PRTA: Prothena Enter Into Worldwide Collaboration with Roche to Co-Develop and Co-Promote Antibodies for Treatment of Parkinson's Disease; +7.7% afterhours - FB: *TO BE ADDED TO S&P500 AND S&P100; effective after the close of trading on Friday, December 20; +4.0% afterhours - MW: Reports Q3 $0.90 v $0.87e, R$649M v $627Me; +1.4% afterhours
- AET: Reaffirms FY13 $5.80-5.90 v $5.87e, R$47B v $47.1Be; Guides initial FY14 at least $6.25 v $6.21e, R$53B v $54.9Be - filing; -0.5% afterhours - IAG: Suspends dividend payout (prior was 6.5% yield) to preserve balance sheet; -3.4% afterhours - VRA: Reports Q3 $0.37 v $0.34e, R$130.1M v $129Me; guides lower; -7.7% afterhours - SUNE: Guides Q4 semiconductor materials Rev $209-234M v $234-264M prior; -11.3% afterhours - ATHN: Guides initial FY14 $0.98-$1.10 v $1.37e, R$725-755M v $765Me; Affirms FY13 $1.05-1.15 v $1.03e, R$580-615M v $592Me (prior "at or near the low end" $1.05-1.15); -15.8% afterhours
Notable movers by sector: - Consumer discretionary: Sunvim Group 002083.CN +2.2% (receives govt subsidy); Huayi Brothers 300027.CN +4.9%, Zhejiang Huace Film 300133.CN +9.6%, China Television Media 600088.CN +3.6% (China annual movie box office reaches CNY20B); Shanghai Lansheng 600826.CN +10.0% (approves for SOE restructure) - Industrials: Kanamoto Co Ltd 9678.JP +2.3% (FY12/13 results); Doosan Heavy 034020.KR -4.6% (to sell treasury shares); Chengdu Road & Bridge Engineering 002628.CN +0.9% (awarded contract); Jiangsu WELLE Environmental 300190.CN +1.7% (awarded contract) - Materials: Nitto Denko Corp 6988.JP -18.3% (FY13/14 guidance) - Financials: Cinda Asset Management 1359.HK +29.9% (IPO) - Technology: Pegatron Corp 4938.TW -1.1% (working safety concerned) - Energy: Kingdream 000852.CN +3.1%, Shandong Molong Petroleum Machinery 002490.CN +4.3% (China Qinhai province finds shale gas) - Utilities: Envestra Ltd ENV.AU +1.0% (FY14 guidance)
Closing Summary: Russell 2000 Leads Stocks Lower Again
Equity indices settled on their lows following a steady, session-long slide. Similar to yesterday, small-caps paced the retreat as the Russell 2000 fell 1.6%, extending its December loss to 3.6%. The S&P 500 settled lower by 1.1%, widening its month-to-date decline to 1.3%.
There was no specific news catalyst behind today's slide, which had the markings of broad-based profit-taking. Seven of ten sectors settled with losses of 1.0% or more while only two groups finished above their respective lows.
Top-weighted financial (-1.5%) and health care (-1.6%) sectors trailed throughout the session, which emboldened sellers and prevented dip-buyers from turning the tide. Interestingly, the largest S&P 500 sector, technology, outperformed with a loss of 0.9% even as the tech-heavy Nasdaq (-1.4%) lagged.
The outperformance of the tech sector was largely due to big gains in the shares of MasterCard (MA 790.57, +26.96) and Visa (V 205.66, +6.23). The pair posted respective gains of 3.5% and 3.1% after MasterCard announced a 10-1 stock split, increased its quarterly dividend by 83.0%, and announced a new share repurchase program in the amount of $3.50 billion. Furthermore, Visa's strength contributed to outperformance of the price-weighted Dow Jones Industrial Average (-0.8%).
Even though the Dow outperformed, only five index components finished in positive territory and Visa was the only listing that added more than 1.0%. Other advancers included Coca-Cola (KO 40.13, +0.28) and Procter & Gamble (PG 84.02, +0.37) while the broader consumer staples sector eked out a gain of 0.2%.
Finding shades of green in other areas proved particularly difficult today as bonds and commodities sold off. The 10-yr note fell 10 ticks, sending its yield higher by four basis points to 2.84%. Crude oil (-1.1% to $97.40) and gold futures (-0.7% to $1252.50/ozt) also retreated while copper bucked the trend, climbing 0.6% to $3.286/pound.
With stocks ending on their lows, the CBOE Volatility Index (VIX 15.36, +1.45) finished at its highest level since mid-October.
Participation was right in-line with average as just over 725 million shares changed hands on the floor of the New York Stock Exchange.
Among news of note, negotiators in Washington secured a two-year budget agreement that aims to reduce sequester cuts by $63 billion and lower the deficit by roughly $20 billion. The deal has yet to receive full Congressional approval with votes in the House and the Senate expected to take place next week.
The weekly MBA Mortgage Index ticked up 1.0% following last week's 12.8% fall.
Separately, the Treasury budget deficit declined to $135.20 billion in November from $172.10 billion in November 2012. Since the data are not seasonally adjusted, the November deficit cannot be compared to the decline in October. consensus expected the budget deficit to fall to $140.00 billion.
The Congressional Budget Office released their budget preview earlier in the week and predicted a shortfall of $140 billion. The market was well aware of the CBO's forecast, therefore the reaction to the budget data was limited.
Tomorrow, weekly initial claims, November Retail Sales, and November export prices ex-agriculture and import prices ex-oil will all be reported at 8:30 ET. The day's data will be topped off with the 10:00 ET release of the October Business Inventories report. • Nasdaq +32.6% YTD • Russell 2000 +29.7% YTD • S&P 500 +25.0% YTD • DJIA +20.9% YTD
--> could be seen as negative for luxury sector watch SWATCH (UHR VX)
+------------------------------------------------------------------------------+
Ulysse Nardin Sees 2013 Sales Rising Less Than 10%, Temps Says 2013-12-12 07:47:45.312 GMT
By Thomas Mulier Dec. 12 (Bloomberg) -- CEO Patrik Hoffmann “cautiously optimistic” and expects “single-digit” percentage gain in sales this yr, Le Temps reports. * Watchmaker exceeded targets this yr, Hoffmann tells Temps in interview * “We’re satisfied, even if the situation has become more complicated. Everything has become harder” * Co. has 460 employees, boosted staff 10% in 2013 * Nardin, which depends on Swatch ETA components for 40% of production, plans to reach total independence as it makes more mechanisms * 25% of sales from Americas, 25% in Europe and Mideast, 25% from Asia and 25% from Russia and former Soviet republics * Brand makes about 25,000 watches a year, sold for CHF7,000 and up, and has capacity to produce about 30,000 * Annual sales exceed CHF200m, analysts estimate: closely held co. doesn’t report figures: Temps
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporter on this story: Thomas Mulier in Geneva at +41-22-317-9201 or tmulier@bloomberg.net
To contact the editor responsible for this story: David Risser at +44-20-7673-2513 or drisser@bloomberg.net
+------------------------------------------------------------------------------+
Edenred Estimates Cut at Goldman on Latam FX, Lowers to Neutral 2013-12-12 07:41:10.958 GMT
By Heather Burke Dec. 12 (Bloomberg) -- Edenred’s Latam exposure may boost organic growth, be largely offset by FX depreciation, Goldman says, cuts to neutral from buy. * Cuts 2014 EPS est. by 8%, 2015 by 16%, 2016 by 22%, mostly due to Goldman’s Latam economists’ FX estimates for Brazil, Venezuela * PT lowered to EU25.70 from EU27.50 (implies ~2% upside to yday close) * Organic issue vol. growth may rise 12.5%/yr 2014-2017 * NOTE: Latin America & Caribbean comprised ~49% of total 2012 rev., ~63% operating income: Bloomberg data * Stock up ~8.2% YTD vs SBF250 up 14% * NOTE Nov. 12: Edenred Raises Low End of Issue Vol. Organic Growth Target
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net