>>> What to look at today

US Market closed on their lows...3rd day in a row...Russel -3.6% MTD for December...see some borader profit taking all across sectors...VIX @ 15.36 +10.4%...Facebook +5.3% after hours after news of joining SP 500...Asia still weak following Us Markets and more noise of Tapering in December...Nikkei -1.12% Shanghai-0.06%...

Eur$ 1.3796 S&P Fut -0.07% European fut -0.48%

>>> Keep an eye on :
- ITALY : Italy Plans to Sell 30-40% of Post Office to Mkt in 2014: Sole
- AKZA NA : Akzo Nobel to Sell 67 of 72 German Decorative Paints Stores
- AZN NA : Bristol, AstraZeneca Win FDA Panel’s Backing for Metreleptin
- BAF GY : Co. posts EU4.1m FY13 Ebitda after loss; proposes special div. of EU1.50/shr, indicated 20% higher
- BDT GY : Bertrandt FY13 Sales Rise 10%; Div. Plan Matches BDVD Forecast
- BRY LN : Brady Exploration Ends Deal Talks With Energy Equity Resources
- CLS1 GY : Celesio Says EU23/Shr Offer Is Fair, Reasonable
- DAI GY : Pischetsrieder to Join Daimler Supervisory Board: Handelsblatt
- DIE BB : D’Ieteren to Buy Beerens VW Concessions in Belgium, De Tijd Says
- FUM1V FH : *FORTUM SELLS ELECTRICITY DISTRIBUTION BUSINESS FOR EU2.55 BLN
- GENP FP : Stallergenes Oralair Gets FDA Advisory Committee Support
- GOG LN : Go-Ahead Sees FY Forecast ‘Slightly’ Ahead of Plan
- GSZ FP : GDF Suez Plans to Sell U.S. LNG in Asia in 2017, Nikkei Says
- HEIA NA : Heineken Offers to Buy UB Group Stake in United Breweries: CNBC
- MOSB LN : Moss Bros Trading In Line With Market Ests.; Margins Fall
- ORP FP : Orpea Shares Offered at EU40.34 to Market in Placing, Terms Show
- UG FP : *PEUGEOT-GM CUT SAVINGS TARGET TO $1.2B BY 2018 FROM $2B
- UG FP : Peugeot Confirms It’s Studying Capital Increase, Partnerships ( Reuters talking of 3.5bi,)
- ROG VX : Roche, Prothena to Collaborate on Parkinson’s Treatment
- RMG LN : Royal Mail, Ashtead Group to Join FTSE 100 Index
- SAN FP : Sanofi Gets EMA Approval for Broadline Cat Parasite Treatment
- SGP LN : SuperGroup 1H Underlying Pretax In Line With Ests.
- TLSN SS : TeliaSonera CEO Sees Continued Consolidation, DI Reports
- FP FP : *TOTAL SIGNS ACCORD FOR OFFSHORE OIL EXPLORATION IN OMAN
- VOD LN :Verizon Agrees to Settle Suit Over Vodafone Stake Purchase
- WOL AV : Wolford Issues Profit Warning After 1H Loss Widens
- WOOD LN : Wood Group Says On Track for 2013 Ebita Growth Target 10%-15%
- WPP LN : WPP Buys Majority Stake in Social Marketing Agency Social Lab

>>> Brokers Upgrades & Downgrades

>>> Up
*ANSALDO RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA
*BASHNEFT RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*CREDIT SUISSE RAISED TO BUY VS HOLD AT HELVEA/BAADER BANK
*EFG INTL RAISED TO BUY VS HOLD AT HELVEA/BAADER BANK
*ERICSSON RAISED TO BUY VS SELL AT SOCIETE GENERALE
*IMAGINATION RAISED TO NEUTRAL VS SELL AT UBS
*TATNEFT RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*TRYG RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*WALLENSTAM RAISED TO NEUTRAL VS REDUCE AT SWEDBANK

>>> Down
*AFFINE CUT TO HOLD VS BUY AT KEPLER CHEUVREUX
*EDENRED CUT TO NEUTRAL VS BUY AT GOLDMAN
*LECTRA CUT TO HOLD VS BUY AT SOCGEN
*NOKIA CUT TO HOLD VS BUY AT SOCIETE GENERALE


>>> PT Change
*ERG PT Raised to EU11 vs EU10 at Kepler Cheuvreux
*Inditex PT Raised to EU124 vs EU119 at Raymond James

>>> Initiation
*ALLIANZ RATED BUY AT COMMERZBANK, PT EU150; WAS UNDER REVIEW
*ARM RATED NEW OUTPERFORM AT FBR
*BLUE SOLUTIONS RATED NEW NEUTRAL AT HSBC
*DIXONS RETAIL REINITIATED BUY AT INVESTEC, PT 60P
*UMICORE RATED NEW EQUALWEIGHT AT MORGAN STANLEY, PT EU32


>>> Country Sector Stock Call
*LOGITECH ADDED TO EXANE’S TACTICAL SMALL & MID CAP LIST

*EU Banks Need to Deliver EPS Upgrades by 2Q14: Mediobanca

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: AVNR -18.4% (also announced that PRIME, its phase II clinical trial of the investigational drug AVP-923 (dextromethorphan / quinidine) for the treatment of central neuropathic pain in patients with multiple sclerosis did not meet the primary efficacy endpoint), CENT -9.4% (light volume), LH -6.7%, JOY -4.4%, MIND -2.8% (light volume),COST -2.5%, CNI -1.1%, HRB -1%.

Select metals/mining stocks trading lower: AU -3.2%, GOLD -2%, BHP -0.9%, GDX -0.6%, SLV -0.5%, VALE -0.5%, BBL -0.4%, GLD -0.3%.

Other news: GEVO -20.5% (announces proposed public offerings of common stock, convertible senior notes and warrants), ALSN -5% ( announces sale of 12.5 mln shares of common stock by selling stockholders), AWAY -3.5% (announces intention to file registration statement for public offering of common stock: HomeAway to offer 5.5 mln, selling stockholders to offer 518,630; Bloomberg discusses that AWAY may be a possible takeover target by Priceline (PCLN) or other travel cos ), EJ -3.3% (announces proposed offering of $180 mln convertible senior notes), TTM -2.8% (still checking), RBS -2.4% (confirms Bostock to resign as Group Finance Director), IEP -1.7% (mentioned cautiously in Barron's), CHL -1.6% (still checking), TRLA -1.5% (intends to offer $150 million aggregate principal amount of its convertible senior notes due 2020), DGX -1.5% (following LH results), POST -0.4% (announces pricing of convertible preferred stock), TA -0.4% (prices public offering of 6.5 mln common shares at $9.25 per share), GSK -0.4% ( to invest GBP 200 mln into UK manufacturing, according to reports ), CAT -0.3% (following JOY results), .

Analyst comments: BBRY -3.2% (assumed with Sell from Neutral at Citigroup), BRCD -1% (initiated with a Sell at Citigroup ), CSCO -0.8% (initiated with a Sell at Citigroup)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: MLNK +12%, VIMC +10%, (receives large order for a SVAC Solution Deployment in Baoding City, Hebei Province), BLIN +9.1%, PPHM +7.9%, SWHC +5.9%, PLAB +4.8%, URBN +3.5%, ( discloses thus far Q4 comparable retail segment net sales are mid single-digit positive), PDLI +1.5%, .

M&A news: SNI +12.6% (Variety report suggesting Discovery (DISCA) bid), VPHM +0.4% (Hart-Scott-Rodino waiting period expires for Shire's (SHPG) acquisition of ViroPharma ), .

Select solar names showing strength: SPWR +0.6% (Total, SunPower (SPWR) and Etrion secure financing with OPIC 70MWp Salvador Solar Project in Chile), TSL +0.6% (announces appointment of new CFO ), JASO +0.6% (announces Mr. Herman Zhao has been appointed the co's new chief financial officer ), .

Other news: CYTR +29.7% (reports highly statistically significant positive results from its Global Phase 2b Clinical Trial), ECTE +22.9% ( announces strategic partnership with Medical Technologies Innovation Asia), BGMD +15.7% (continued strength), NSTG +11.7% (announces adoption of the Prosigna Breast Cancer Assay by leading US clinical laboratories and cancer centers), NRF+10.7% (announces plan to spin-off Asset Management Business into a separate publicly traded company in a tax-free transaction), SPPI +10.2% (presents 'encouraging' FOLOTYN and MARQIBO clinical data), RNN +6.3% (Receives Method Patent for Treatment of Solid Tumor Cancers for Supinoxin), BLDP +4.9% (to supply ElectraGen-ME fuel cell systems for a polot project in Idea Cellular's India telecom network), CGEN +4.6% (Compugen discloses discovery of five potential cancer targets for antibody drug conjugate therapy), MA +4% ( announces capital actions: 10-for-1 split, 83% increase in quarterly dividend, $3.5 bln share repurchase program), ARIA +3.6% (still checking), ALU +3.3% (BlackRock discloses new 10%+ passive positions in 13G; upgraded to Buy from Neutral at Citigroup), QCOR +3.2% (made open market purchases during Q4 of ~500,000 shares of Questcor common stock through Dec 10; the shares were purchased at an average price of $57.21 per share), SNE +2.2% (music licensing deal in India, according to reports), CBI +1.8% (awarded contract for LNG Liquefaction terminal), PLUG +1.6% (continued strength), MCP +1.2% ( announces new Board appointments: Constantine Karayannopoulos to be Board Chair), RGR +1% (following SWHC results), SSNI +1% (Waddell & Reed disclosed 12.3% passive stake in 13G filing out last night after the close), CAM +0.8% ( approves $750 mln increase in share repurchase authorization ), FNSR +0.6% (prices $225 mln of 0.50% of Convertible Senior Notes due 2033; offering was increased by $25 mln), CBOE +0.5% ( declares special cash dividend of $0.50 per share; increases stock repurchase authorization by $100 mln), GM +0.5% (to halt Australia production by 2017), COG +0.5% (Barron's profiles positive view on Cabot Oil & Gas), YNDX +0.2% (announces proposed offering of $600 mln Convertible Senior Notes and a 3 mln share Increase in the Company's Open Market Share Repurchase Plan).

Analyst comments: GRPN +2.6% (upgraded to Outperform from Market Perform at Wells Fargo), EOPN +2.1% (initiated with a Buy at Janney ), XONE +1.8% (initiated with a Buy at Jefferies), RVBD +1.3% (initiated with a Buy at Citigroup), QCOM +1% (assumed with a Buy from a Neutral at Citigroup), VJET +1% (initiated with a Hold at Jefferies; tgt $40), FE +1% (FirstEnergy upgraded to Neutral from Sell at Goldman), FFIV +0.7% (initiated with a Buy at Citigroup ), ARCW +0.7% (initiated with a Buy at Brean Capital), DDD +0.5% and SSYS +0.4% (initiated with a Buy at Jefferies), MMM +0.4% (upgraded to Buy from Neutral at Nomura)

>>> US Early premarket gappers

Early premarket gappers

Gapping up: ECTE +26.3%, SNI +14.3%, MLNK +12%, NSTG +11.7%, NRF +10.7%, VIMC +10%, BLIN +9.1%, PPHM +7.9%, SWHC +5.9%, BLDP +4.9%, PLAB +4.8%, MA +4%, ALU +3.3%, QCOR +3.2%, SNE +2.2%, CBI +1.8%, PLUG +1.6%, PDLI +1.5%, MCP +1.2%, RGR +1%, CAM +0.8%, FNSR +0.6%, SPWR +0.6%, TSL +0.6%, JASO +0.6%, CBOE +0.5%, GM+0.5%, COG +0.5%

Gapping down: AVNR -11.4%, CENT -9.4%, LH -6.7%, AWAY -4.8%, COST -4.4%, ALSN -3.9%, AU -3.9%, EJ -3.3%, TTM -2.8%, MIND -2.8%, JOY -2.7%, RBS -2.4%, GOLD -2%, IEP -1.7%, CHL -1.6%, TRLA -1.5%, DGX -1.5%, CNI -1.1%, HRB -1%, BHP -0.9%, GDX -0.6%, SLV -0.5%

>>> PIMCO - New European Perspectives Muddling Through: The 'Realpolitik'of the

Muddling Through: The 'Realpolitik'of the Eurozone Crisis
by Andrew Bosomworth

The long-term cost of Europe's economic recovery is likely to challenge social tolerance and political will to achieve a fully integrated fiscal and political union.
Although able to exploit the untapped potential of European treaties, the soon-to-be-elected 8th European Parliament looks more likely to continue to muddle through.
We see low medium-term risk for government and corporate bonds with maturities of up to three years, but caution may be required for securities with longer maturities and lower down in the capital structure.

>>> Vattenfall's sale of European operations unlikely to occur until after Swedi

Vattenfall's sale of European operations unlikely to occur until after Swedish election
Vattenfall, the Swedish energy giant, has almost concluded splitting the company into a Nordic and a European unit, according to Dagens Industri. The Swedish business daily asked the Swedish minister of financial markets, Peter Norman, whether a sale is on the cards to which he responded that a sale of such a large and important company has to occur with the political approval and help from the Swedish oppositional party Socialdemokraterna which is unlikely until after the Swedish election. Meanwhile, the paper cited Vattenfall’s Managing Director, Oystein Loseth, who confirmed that splitting the company in two parts makes it possible to admit new shareholders into the European business

The paper cited unnamed sources who pointed to a Frankfurt listing of the European unit as the most obvious possibility or even listing a smaller part of the unit to begin with. The item noted that selling the entire unit is another option but that finding a buyer could be difficult.

The paper wrote that Vattenfall’s European include the company’s German fossil operations as well as the Dutch and UK units including gas and wind assets. The item noted further that Citi and Rothschild have calculated the value of Vattenfall’s European operations and it is thought to be around EUR 15bn-EUR 17bn.
Source Dagens Industri