>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: CTCT +15%, AA +3.4%, CPSS +2.7%, STZ +2.5%.

M&A related: K +0.7% (Bloomberg real M&A column discusses that K may be a possible takeover target by Warren Buffett).

Select mining stocks trading higher: BHP +1%, BBL +0.9%, MT +0.8%, .

Social media/tech names trading higher: LNKD +1.2%, YELP +1.6%, FB +1.2% (several articles out highlighting updates - India users, FTC approves acquisition of WhatsApp, ad pricing is up 10% in Q1 versus Q4 of 2013)

A few China internet names are trading higher: VIPS +3.1%, YOKU +2% (recently launched the beta version of an interactive entertainment platform), WBAI +1.3%, YY +1.2% (still checking), QIHU +1.2%

European telecom names modestly higher: VOD +1.4%, ORAN +1.2%, BT +1%

Other news: ZGNX +8.1% (provides update on legal action), LOCM +6.1% (Local Corporation Launches Mobile Display Ad Network), BV +5.3% (enters into letter of intent with Viewpoints to divest PowerReviews Business), MNGA +3.9% (MagneGas Files New Patent for Binding MagneGas to Hydrocarbon Fuels), HAR +2.4% (following positive MadMoney mention), GIMO +2.3% (modestly rebounding), AUDC +2.2% (announces approval of a 3-Year NIS100 mln plan by Israeli Chief Scientist to establish new cloud computing R&D center), FEYE +2.2% (still checking for anything specific), ASML +1.6% (still checking), NOK +1.6% (still checking; yesterday Nokia's plan to sell its Devices and Services business to Microsoft receives regulatory approval in China), RARE +1.3% (following CEO's appearance on CNBC to discuss co's pipeline), BUD +1.3% (still checking), DEO +1.3% (still checking), FENG +0.7% (Point72 Asset Management discloses 5.7% passive stake in 13G filing), GOOG +0.5% (has signed deal with Room 77 to enter hotel booking business, according to reports), PVH +0.4% (announces minority investment in Karl Lagerfeld brand), IBM +0.3% (following positive MadMoney mention), SFLY +0.2% (Point72 Asset Management discloses 5.4% passive stake in 13G filing), PG +0.2% (following positive MadMoney mention), GPS +0.1% (Barron's positive on GPS).

Analyst comments: GTN +3.8% (upgraded to Outperform from Market Perform at Wells Fargo), SBGI +3% (Sinclair Broadcast upgraded to Outperform from Market Perform at Wells Fargo), ETFC +2.6% (upgraded to Neutral from Underperform at BofA/Merrill; tgt raised to $21 from $19), NMBL +2.1% (initiated with a Buy at Sterne Agee), YELP +1.1% (upgraded to Buy from Fair Value atCRT Capital; announced the availability of Yelp Japan), SDRL +0.9% (upgraded to Hold from Sell at Societe Generale), NXPI +0.4% (upgraded to Strong Buy from Outperform at Raymond James), CVX +0.1% (initiated with a Buy at Jefferies)

>>> US Early premarket gappers

Early premarket gappers
Gapping up: CTCT +15%, HAR +10.5%, ZGNX +8.1%, BV +5.3%, YOKU +4%, AA +3.4%, CPSS +2.7%, GIMO +2.3%, AUDC +2.2%, ASML +1.6%, NOK +1.6%, HSBC +1.4%, VOD +1.4%, RARE +1.3%, BUD +1.3%, DEO +1.3%, YY +1.2%, LNKD +1.2%, FENG +0.7%, K +0.7%

Gapping down: ISRG -9.2%, RLYP -7.1%, MG -4.4%, AVIV -3.9%, LSCC -3.9%, AHT -3.8%, LJPC -3.4%, SAIC -2.7%, GM -2.4%, HCLP -1.4%, AAL -1.1%, WDFC -1.1%, CHS -1%, IMGN -0.9%, AU -0.9%

>>>(WSJ) Goldman Mulls Closing Dark Pool

Goldman Mulls Closing Dark Pool
Executives Have Broached Closing Sigma X Trading Operation

Goldman Sachs Group Inc. is considering shutting down one of the world's largest private stock-trading venues, according to people familiar with the matter.
In conversations with market participants over the past several months, Goldman executives have broached the subject of closing its so-called dark-pool trading operation, known as Sigma X, the people said.
Goldman executives are weighing whether the revenue that the firm generates from operating Sigma X is worth the risks that have been highlighted by a series of trading glitches and growing criticism of dark pools, the people said.
No decision is imminent, and Goldman could keep the business, according to the people.
A move to shutter one of the biggest dark pools could compel other big banks to take similar steps, potentially changing the way buy and sell orders from big investors course through the markets each day.
Dark pools are trading venues where investors are granted a greater degree of anonymity than in the public markets. About 14% of stock trading took place in dark pools in January, most of it routed through entities run by big banks, according to Rosenblatt Securities, which advises institutional investors. Goldman's consistently ranks among the top five dark pools in the market, according to Rosenblatt.
The dark-pool business has hit a rough patch lately. Competition has increased in the already fragmented market as new dark pools have emerged. A recent spate of technological glitches in the stock market, meanwhile, underscores the risks that come with operating private trading platforms.
Last month, Goldman acknowledged that Sigma X suffered a pricing malfunction in 2011 that resulted in customers not receiving correct payments for transactions. The errors were related to market volatility between Aug. 1 and Aug. 9, 2011, according to a copy of a letter to an institutional investor reviewed by The Wall Street Journal. Goldman sent checks to customers to reimburse them for losses, according to institutions that received the letters.
Another headwind for dark pools came last week with the publication of a book by Michael Lewis on high-frequency trading that fanned the debate over whether dark pools give certain investors unfair advantages. Regulators last month began ramping up scrutiny of brokers and dark pools, and since Mr. Lewis's book came out, states have vowed to look into the matter as well.
The Financial Industry Regulatory Authority, meanwhile, has opened an inquiry into the way brokers route customer orders and how they use their own dark pools in executing trades. Finra sent a letter to brokers last month asking for detailed answers on its order-routing practices, according to brokers who received the letter.
Stock trading is a big business for Goldman, bringing in $7.17 billion in 2013 excluding accounting charges. Goldman doesn't break out revenue from operating Sigma X. Among the largest dark pools are those operated by Barclays PLC, Morgan Stanley and UBS AG, according to Rosenblatt.
Goldman has operated Sigma X since 2006. But recently it has become an advocate of market changes. Gary Cohn, Goldman's president and chief operating officer, published an opinion piece in the Journal on March 20 that called for improvements to reduce the risk of technology failures and level the playing field for investors.
In an internal document sent to employees the same day the piece was published advising them on how to address questions about it, Goldman highlighted its relationship with an upstart trading venue called IEX Group Inc. In the message, Goldman said "While we think that a regulatory response may be needed to address these market structure issues, it would be best for the overall market if IEX achieved critical mass, even if that results in reduced volumes in our U.S. dark pool, Sigma X."
Less than two weeks later, Mr. Lewis's book, "Flash Boys," was published. The book presents IEX as heroes taking on an industry in which markets are rigged to benefit exchanges, brokers and high-frequency traders at the expense of ordinary investors. The IEX platform uses a speed bump to level the playing field between fleet-footed and ordinary investors.
Goldman's debate over Sigma X could be part of a broader effort to pare back on businesses Goldman doesn't consider core to its position as a brokerage firm for institutional investors, according to the people familiar with Goldman's discussions.
The firm also appears to be trimming its electronic-trading businesses. The bank is in advanced discussions to sell a market-making business based on the floor of the New York Stock Exchange to IMC Financial Markets, a Dutch high-frequency-trading firm, for as much as $30 million, according to people familiar with the discussions.

Goldman Sachs Considers Closing Sigma X Dark Pool, WSJ Says

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Goldman Sachs Considers Closing Sigma X Dark Pool, WSJ Says 2014-04-08 22:37:31.826 GMT

By Vivek Shankar April 8 (Bloomberg) -- GS weighing whether revenue from Sigma X, one of the largest dark pools, is worth risks underscored by trading problems and rising criticism of private stock-trading venues, WSJ says, citing people familiar. * GS has broached topic in talks with market participants over past several months * No decision imminent * NOTE: 4/5 Goldman Sachs Wins, Credit Suisse Loses in Lewis’s League Table <GO>

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

To contact the reporter on this story: Vivek Shankar in San Francisco at +1-415-617-7169 or vshankar3@bloomberg.net To contact the editors responsible for this story: Brad Skillman at +1-212-617-2763 or bskillman1@bloomberg.net Vivek Shankar

(BFW) Iliad Has Strong Negotiating Position for Bouygues Tel.: SocGen

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Iliad Has Strong Negotiating Position for Bouygues Tel.: SocGen 2014-04-09 06:43:22.345 GMT

By Sam Chambers April 9 (Bloomberg) -- Iliad is the only potential buyer of Bouygues Telecom and should be able to agree an acquisition on favorable terms, SocGen says. * SocGen: Iliad has capacity to pay up to EU5b cash and keep its net debt/Ebitda below 3.0x, pre-synergies * Iliad would benefit from not having to pay roaming charges to Orange, which totalled EU730m in 2013 * Potential EU8b valuation of Bouygues Tel. cited in the French press is expensive; Iliad would be better off deploying its own network * In the event of a stock deal, doubtful that Xavier Niel would be willing to allow his stake to fall below 50% * NOTE: Xavier Niel holds 55.35% stake in Iliad: Bloomberg data * NOTE: In 2013, Iliad had 11.9% share of French wireless subscriber mkt. and Bouygues had a 16.5% share: Bloomberg Industries data

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

To contact the reporter on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

WSJ : Swiss Firms Contort to Fit Shareholder Law

Swiss Firms Contort to Fit Shareholder Law

Several Companies Delisted to Sidestep New Rules

ZURICH—Few Swiss companies have gone as far as railroad operator Berner Oberland-Bahnen AG in response to a new law that gives shareholders a sweeping say over how firms conduct their business.

After months of deliberation, the board of the 126-year-old railway decided that rather than pay accountants, lawyers and investor-relations specialists to help it comply with the law, it would delist from the Bern stock exchange, where its stock had traded for more than a century.

"We've been listed on the stock exchange for longer than I can remember," said Christoph Seiler, chief executive at the company whose distinctive blue-and-yellow trains have ferried tourists and skiers to the Bernese Alps since 1890. "But the costs and effort of implementing the new rules are too much for a small company like ours," he said.

Across Switzerland, publicly traded companies are struggling to adapt to the law, which requires binding shareholder votes on executive pay and greater transparency over loans and retirement packages. The law, which is on the books but won't be enforced until Jan. 1, 2016, also requires annual elections of individual board members rather than the common practice of full-slate elections every three years

The Swiss government wrote the law after voters overwhelmingly approved the so-called Minder Initiative last March. The initiative, named after businessman and parliamentarian Thomas Minder, was widely seen as a popular referendum on excessive corporate pay. It applies to all publicly traded companies based in Switzerland that are listed on either of the country's two stock exchanges.

Companies say complying with the law is driving up administrative, legal and accounting costs, as well as eating up time. Compensation reports now need to be audited, forcing up accounting costs. Companies are hiring consultants to advise them on new pay structures to ensure compliance. Almost all Swiss companies are rewriting their corporate bylaws.

Robert Kuipers, a Zurich-based partner at PricewaterhouseCoopers which is advising roughly 30 companies on compliance with the law, said figuring out how much companies are spending is tricky but it will likely cost some millions of Swiss francs. A PwC survey of 57 large and midsize companies found nearly two-thirds said implementation of the rules would likely mean a significant jump in expenses.

Some companies have already phased in elements of the law.

Pharmaceutical giant Roche Holding AG ROG.VX -0.66% introduced annual elections for its chairman and a binding vote on executive pay at this year's annual meeting. Zurich Insurance Group AG ZURN.VX -0.31% 's shareholders approved revised bylaws that include provisions on the number of activities board members and executive committee members may assume. Shareholders of Nestlé SA, NESN.VX +1.79% the world's biggest food company, will vote on new bylaws at their general meeting on Thursday and binding votes on pay are expected in 2015.

The new law has generated criticism from corporate Switzerland about everything from the administrative and legal costs to concerns the rules will encourage short-term thinking if they prompt a faster turnover of corporate boards.

"Does it improve the business or profitability?" asked Thomas Aebischer, the chief financial officer of Jona-based cement maker Holcim Ltd. HOLN.VX -1.41% , which earlier this week agreed to merge with France's Lafarge SA LG.FR +0.08% . "I don't think so."

Others point to bloat caused by the rules. The invitation to telecommunications giant Swisscom AG SCMN.VX +0.09% 's shareholder meeting ballooned to 40 pages from 12 last year because of a detailed explanation needed of its new bylaws.

Some companies are benefiting from the changes. Zurich-based Sherpany, which develops Internet-based voting systems for shareholder meetings, has signed up 30 companies for its online corporate voting service, which costs up to 80,000 Swiss francs ($90,000) a year.

Meanwhile, the costs are too much for some firms to shoulder. Five companies have given up their listing on the Bern stock exchange in the past year, in part because of the law, according to the exchange. They have included railway operators Gondelbahn Grindelwald-Männlichen and BLS AG.

Mr. Seiler, the CEO of another railway operator, Berner Oberland-Bahnen, said the cost of an electronic voting system required by the new law was part of the reason the company decided to delist. It currently conducts its shareholder votes by a show of hands.

"It's just not worthwhile for a company like ours," Mr. Seiler said.

>>> What to look at today - 09/04/2014

US Market had a modest rebound, but Nasdaq stayed ahead of other index after big underperformance, Energy & Materials were among best performers, With oil , copper & Gold trading higher. Voluem were above average @ 733mil shares...VIX @14.89 -4.37%...Alcoa +2.6% after hours beats on EPS Missed on Revs but Good Outlook on Alu demand...Asia indices are modestly higher aside from another steep sell-off in Tokyo, where Nikkei225 is driven lower by firmer JPY. Lower USD/JPY is tracking the overall USD weakness that follows a bid in US Treasuries where the yield on the 10-year has fallen to 2.68%. Traders are also citing broad disappointment from a neutral set of remarks from BOJ Gov Kuroda overnight, spoiling expectations for more easing...PBoC set Yuan mid-point firmer for the second consecutive session, possibly in response to overnight warning from the US Treasury. An unnamed official said
that "if the recent currency weakness signals a change in China's policy away from allowing adjustment, that would raise serious concern."...Nikkei -2.1%...HS +0.79%...Shanghai -0.02%

Eur$1.3792 S&P Fut -0.01% European Future : -0.06%

Macro
- Fed’s Evans Calls on Fiscal Policy Makers to Help Boost Growth {NSN N3QIRA6JIJVE <go>}
- JPMorgan Chase CEO Says France’s Future Worries Him, Figaro Says
- Some Swiss Companies Opt to Delist on Shareholder Law: WSJ
- ECB’s Noyer Cautions French Govt Against Delaying Deficit Cuts
- Weidmann: ECB Ready to Act If Period of Low Inflation Too Long

Keep an eye on :
- A2A IM : A2A’s Ravanelli Optimistic on 2H, Sees Further Cost, Debt Cuts
- BARC LN : Barclays Said to Move More Singapore Staff in Suburb to City
- BBGI LN : Jefferies Placing 8.7% Bilfinger Berger Global Stake, Terms Show
- CGG FP : CGG 1Q Vessel Availability Rate 94% vs 88% y/y
- DSY FP : Dassault Extends Tender Offer for Accelrys One More Time
- GALP PL : Galp Says Amorim Energia’s Direct Stake Remains 38.34%
- IND IM : Whirlpool May Propose All-Share Offer for Indesit: Il Sole
- KCR1V FH : Konecranes Sees Best Growth Potential for Port Cranes in Asia
- SDF GY : K&S : Potash Supply Overhang to Remain for ‘Foreseeable Future’: BNA
- KPN NA : KPN Won’t Return to Pre-2012 Dividend Levels, CEO Tells Dagblad
- MKS LN : Marks & Spencer to Close 2-5 Stores in Shanghai: China Daily
- ORCO FP : Orco Property EGM Cuts Share Par Value to EU1 From EU2 Per Share
- UG FP : Peugeot Plans to Reorganize Rennes Production, Le Figaro Says
- SAABB SS : Saab Looking at Buying ThyssenKrupp’s Kockums Shipyard, TV4 Says
- VIV FP : Vivendi’s Outlook Changed to Stable From Negative By Moody’s
- VOLVB SS : Volvo Delays Partnership Plans With Russian Tank Maker: Reuters
- WDI GY : Wirecard Div. Plan Matches BDVD Forecast; Posts 2013 EPS 74c/Shr

>>> Brokers Upgrade & Downgrades -09/04/2014

>>> Up
*CARILLION RAISED TO BUY VS HOLD AT CANTOR
*CASINO RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*DNB RAISED TO BUY VS NEUTRAL AT CITI
*INTESA RAISED TO CONVICTION BUY VS NEUTRAL AT GOLDMAN
*ISBANK RAISED TO HOLD VS SELL AT SOCGEN
*KINGFISHER RAISED TO BUY VS NEUTRAL AT UBS
*LEG IMMOBILIEN RAISED TO OVERWEIGHT AT MORGAN STANLEY
*LUFTHANSA CUT TO HOLD VS BUY AT LIBERUM
*NORILSK RAISED TO BUY VS HOLD AT SOCGEN
*PORSCHE RAISED TO OUTPERFORM VS MARKET PERFORM AT BERNSTEIN
*RALLYE RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*RATOS RAISED TO BUY VS SELL AT UBS*RSA RAISED TO OUTPERFORM VS MARKET PERFORM AT RAYMOND JAMES
*RYANAIR RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*SEADRILL RAISED TO HOLD VS SELL AT SOCGEN
*SPIRENT RAISED TO BUY VS ADD AT NUMIS
*VOLKSWAGEN RAISED TO OUTPERFORM VS MARKET PERFORM AT BERNSTEIN
*YAPIKREDI BANK RAISED TO BUY VS HOLD AT SOCGEN

>>> Down
*AGEAS CUT TO NEUTRAL VS OUTPERFORM AT MEDIOBANCA
*ANTOFAGASTA CUT TO SELL VS NEUTRAL AT UBS
*ARSEUS CUT TO 'HOLD' FROM 'BUY' AT ING
*BMW CUT TO MARKET PERFORM VS OUTPERFORM AT BERNSTEIN
*BT CUT TO MARKET PERFORM VS OUTPERFORM AT BERNSTEIN
*CREDIT SUISSE CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*DEUTSCHE WOHNEN CUT TO EQUALWEIGHT AT MORGAN STANLEY
*HALKBANK CUT TO HOLD VS BUY AT SOCGEN
*IMERYS CUT TO UNDERWEIGHT AT HSBC
*INVESTEC CUT TO NEUTRAL VS BUY AT UBS
*JARIR CUT TO NEUTRAL AT BOFAML
*POP. MILANO CUT TO NEUTRAL VS CONVICTION BUY AT GOLDMAN
*REED ELSEVIER CUT TO UNDERPERFORM VS NEUTRAL AT EXANE
*UNICREDIT CUT TO NEUTRAL VS BUY AT GOLDMAN

>>> PT Change
*Air France-KLM PT Raised to EU14 vs EU10.5 at Raymond James
*PANALPINA PT RAISED TO CHF115 VS CHF100 AT CANTOR; KEPT AT SELL
*Wolseley PT Raised to 3,200p vs 2,900p at Raymond James

>>> Initiation


>>> Call
>> Stock
*FERREXPO REMOVED FROM UBS’S MOST PREFERRED LIST
*INTESA RAISED TO CONVICTION BUY VS NEUTRAL AT GOLDMAN
>> Country
*DUTCH EQUITIES CUT NEUTRAL FROM OVERWEIGHT AT HSBC
*FRENCH EQUITIES RAISED TO OVERWEIGHT FROM NEUTRAL AT HSBC
*RUSSIAN EQUITIES CUT TO UNDERWEIGHT FROM NEUTRAL AT HSBC
*SOUTH AFRICAN EQUITIES RAISED TO NEUTRAL VS UNDERWEIGHT AT HSBC
*SWEDISH EQUITIES CUT TO UNDERWEIGHT FROM OVERWEIGHT AT HSBC
*SWISS EQUITIES RAISED TO OVERWEIGHT FROM UNDERWEIGHT AT HSBC