(BFW) Statoil, ExxonMobil Make Fifth Discovery at Block 2 Off Tanzania

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BN 12/06 07:03 *STATOIL COMMENTED ON TANZANIA FIND IN E-MAILED STATEMENT BN 12/06 07:02 *STATOIL FIND BRINGS TOTAL VOLUME TO 17-20 TCF IN BLOCK 2 BN 12/06 07:02 *STATOIL FOUND EXTRA 2-3 TRILLION CUBIC FEET OFF TANZANIA BN 12/06 07:01 *STATOIL, EXXONMOBIL MAKE FIFTH DISCOVERY AT BLOCK 2, TANZANIA BN 12/06 07:01 *STATOIL MAKES HIGH-IMPACT NATURAL GAS DISCOVERY OFF TANZANIA

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Statoil, ExxonMobil Make Fifth Discovery at Block 2 Off Tanzania 2013-12-06 07:08:03.913 GMT

By Alastair Reed Dec. 6 (Bloomberg) -- Discovery of further 2-3 trillion cubic feet of natural gas at Mronge-1 well brings total volume in-place to 17-20 Tcf in Block 2. * NOTE: Statoil operates Block 2 on behalf of Tanzania Petroleum Development Corp.; Statoil has 65% working interest, ExxonMobil 35%. * NOTE: See statement {NSN MXDIFH6JIJVH <GO>}

Link to Company News:{STL NO <Equity> CN <GO>} Link to Company News:{XOM US <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: Alastair Reed at +47-22-00-8212 or areed12@bloomberg.net

>>> BofA-ML on Oilservices...

*BP, WOOD GROUP ADDED TO MOST PREFERRED OILS AT BOFAML
*SEADRILL, STATOIL REMOVED FROM MOST PREFERRED OILS AT BOFAML
*CGG, TOTAL ADDED TO LEAST PREFERRED OILS AT BOFAML
*DRAGON OIL, SHELL REMOVED FROM LEAST PREFERRED OILS AT BOFAML

>>> Shire the subject of renewed takeover talk

Shire the subject of renewed takeover talk

Shire, a listed Anglo-Irish pharmaceuticals company, was the subject of renewed takeover talk yesterday, 5 December, The Daily Mail reported. The newspaper’s market report section did not cite sources for the speculation.

The article also noted talk that Shire will soon be the subject of broker research.

Shire’s share price closed 53p up at 2707p on the London Stock Exchange yesterday, giving the company a market capitalisation of GBP 15.19bn (EUR 18.15bn).


Source Daily Mail

>>> What to look at today

US market closed for a fifth day in a row in negative territory...moerate voluem today @ 700mil sh....Yesterdays profit-taking action was centered primarily on large-cap issues. The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all finished lower while the Russell 2000 (+0.1%) and S&P 400 Midcap Index (+0.1%) scored small gains. Gains in Apple (AAPL 567.90, +2.90), Boeing (BA 132.72, +1.22), 3M (MMM 126.84, +0.38), Intel (INTC 24.27, +0.53), and Tiffany & Co. (TIF 89.71, +1.13) helped limit today's losses, yet every sector in the S&P still finished in red figures with the exception of the industrials sector which was unchanged...VIX @15.08 +2.58% (highest level since 16/10)...Brazil +1.14%...China, PBoC setting for the yuan fell below CNY6.13, a record high, and 3-month Shibor tightened to levels not seen since June in the wake of the first net
liquidity drain in 3 weeks....Shanghai -0.65%...JPY traded softer in the afternoon session after Japan pension fund official called for a reduction of domestic bond holdings (to 52% - said need to start selling bond asap) in favor of less risk-averse assets...According to the latest data from Tokyo Stock Exchange, individual investors are selling off stocks ahead of the sales tax hike - Nikkei...Nikkei +0.81%

Eur$ 1.3655 S&P Fut +0.22% European Fut. unchanged

>>> Keep an eye on
- ALV GY : Allianz Opposes Cut in Guaranteed Life Insurance Rates: Bild
- ALU FP : the rights issue, 96.9% take up + 1.6x reducible demand (787m shraes)
- ALU FP : Alcatel Replaces STMicro in CAC 40, Les Echos Says (effective 23/12)
- CA FP : Carrefour Plans Presence in 100 Chinese Cities in 3 Yrs: Xinhua
- EDP PL : EDP Says Banco Espirito Santo Cuts Stake to 1% From 2.01%
- EOAN GY : Gazprom, Edison, Eni Eyeing E.ON Italy Assets: Repubblica
- GIVN VX : Nestle to Sell Givaudan Stake Worth $1.27 Billion, 926,562 shares, GS Book runner. (10% of Capital 12.5% of free float, 42 trading days (2month ADTV)
- GSZ FP : GDF Suez Wins Bidding for Six More Onshore Blocks in Brazil
- KPN NA : KPN Pullback a Buying Opportunity, UBS Says
- NESN VX : Nestle to Sell Givaudan Stake Worth $1.27 Billion, 926,562 shares, GS Book runner.
- NOVN VX : Novartis Says LBH589 Study Met Phase 3 Primary Endpoint
- PNL NA : PostNL Plans to Sell Stake of About 15% in TNT Express, ABB GS & DB Book Runner
- SKYD GY : Sky Deutschland to Buy 100% of Plazamedia, 25% Stake in Sport1
- TNTE NA : PostNL Plans to Sell Stake of About 15% in TNT Express, ABB GS & DB Book Runner
- UN NA : Unilever Will Reduce Costs by Additional EU500m, CEO Says
- VWS DC : Vestas Wins Turbine Order for 24 MW in Canada

>>> Brokers Upgrades & Downgrades

>>> Up
*ATLANTIA RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*BG GROUP RATED NEW OVERWEIGHT AT HSBC
*BP RATED NEW OVERWEIGHT AT HSBC
*DARTY RAISED TO BUY VS NEUTRAL AT UBS
*DEUTSCHE TELEKOM RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*DUNELM RAISED TO BUY VS UNDERPERFORM AT BOFAML
*ENI RATED NEW NEUTRAL AT HSBC
*FAURECIA RAISED TO BUY VS NEUTRAL AT UBS
*FOXTONS RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*KPN RAISED TO BUY VS HOLD AT JEFFERIES
*LSE RAISED TO BUY VS NEUTRAL AT BOFAML
*MERCK KGAA RAISED TO HOLD VS SELL AT SOCGEN
*MORRISON RAISED TO NEUTRAL VS SELL AT CITI
*PENNON GROUP RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*PETROFAC RAISED TO NEUTRAL VS UNDERPERFORM AT MACQUARIE
*REPSOL SA RATED NEW NEUTRAL AT HSBC
*RIGHTMOVE RAISED TO HOLD VS UNDERPERFORM AT JEFFERIES
*SHELL RATED NEW OVERWEIGHT AT HSBC
*SUPERGROUP RAISED TO BUY VS NEUTRAL AT BOFAML
*VODAFONE RAISED TO BUY VS HOLD AT BERENBERG
*VODAFONE RAISED TO NEUTRAL VS UNDERPERFORM AT EXANE
*WENDEL RAISED TO OVERWEIGHT AT HSBC

>>> Down
*ACCOR CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*AMLIN CUT TO UNDERPERFORM AT RBC CAPITAL
*AZ ELECTRONIC MATERIALS CUT TO HOLD VS BUY AT DEUTSCHE BANK
*GENERALI CUT TO SELL VS HOLD AT SOCGEN
*HOCHTIEF CUT TO SELL VS NEUTRAL AT UBS
*STATOIL ASA RATED NEW UNDERWEIGHT AT HSBC
*TELEFONICA CUT TO UNDERPERFORM VS NEUTRAL AT EXANE
*VINCI SA CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*YAPI KREDI CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY

>>> PT Change
*Monte Paschi PT Cut to EU0.12 vs EU0.2 at BofAML
*TOD’S PT CUT TO EU120.9 VS EU126.9 AT GOLDMAN; KEPT AT SELL

>>> Initiation
*AVIVA RESUMED AT HOLD AT DEUTSCHE BANK; PT 430P
*BG GROUP RATED NEW OVERWEIGHT AT HSBC
*BP RATED NEW OVERWEIGHT AT HSBC
*DISTELL RATED NEW OVERWEIGHT AT HSBC
*ENI RATED NEW NEUTRAL AT HSBC
*INTERNATIONAL BREWERIES RATED NEW OVERWEIGHT AT HSBC
*IG GROUP RATED NEW HOLD AT LIBERUM, PT 590P
*NEXANS RATED NEW EQUALWEIGHT AT MORGAN STANLEY; PT EU35
*PRYSMIAN RATED NEW OVERWEIGHT AT MORGAN STANLEY; PT EU22
*REPSOL SA RATED NEW NEUTRAL AT HSBC
*STATOIL ASA RATED NEW UNDERWEIGHT AT HSBC
*TOTAL RATED NEW OVERWEIGHT AT HSBC
*VIVENDI REINSTATED AT EQUALWEIGHT AT BARCLAYS; PT EU19

>>> Country Sector Stock Call

>>> US After Hours

After Hours Summary: PSUN +9.4%, FNSR +6.7%, VEEV +4.1%, ULTA -17.3%, SEAC -16.7%, RALY -11.6%, FIVE -11.5% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: PSUN +9.4%, FNSR +6.7%, VEEV +4.1%

Companies trading higher in after hours in reaction to news: BLDP +23.1% (signed MOU with Van Hool for further zero emission fuel cell bus deployments), ENZN +15.2% (disclosed it declared a special cash dividend of $0.45 per share), PCRX +9.5% (announced submission of Prior Approval Supplement for additional EXPAREL manufacturing suite), AXU +2.4% (released positive preliminary economic assessment for expanded silver production from Eastern Keno Hill Silver District, Yukon), POZN +1.75% (clarified ex-dividend date for previously announced special cash distribution of $1.75 per share: Ex-dividend date is December 31, 2013)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: ULTA -17.3%, SEAC -16.7%, RALY -11.6%, FIVE -11.5%, BIG -11.1%, ZUMZ -5.7%, COO -5.0%, IDT -4.5%, VTSS -4.3%, MITL -2.4%, DMND -1.6%, ESL -0.2%

Companies trading lower in after hours in reaction to news: ZUMZ -5.7% (reported November same store sales +1.7% vs +2.8% Retail Metric consensus; co also announced $30 mln stock repurchase), GMLP -5.0% (Golar LNG (GLNG) announced agreement to sell Golar Igloo to Golar LNG Partners (GMLP) for $310 mln), SLCA -3.6% (announced offering of ~4.53 mln shares by selling shareholder), HW -2.0% (announced pricing of $150 mln of $7.25% senior notes), JCP -1.1% (disclosed in 10-Q filing it received a letter of inquiry from the SEC requesting information regarding co's liquidity, cash position, and debt and equity financing)

>>> US Close Dow -0.43% S&P -0.43% Nasdaq -0.12%

Closing Summary - Five Up, Five Down for S&P 500
The drive for five continued today and it was a success. For the fifth straight session, the S&P 500 ended lower. Like the previous four sessions, though, the losses were fairly modest in scope. The S&P 500 declined 0.4%, bringing its total loss for the five sessions to 22 points or 1.2%. All in all, that still qualifies as a pretty tame slide considering the S&P 500 had risen 150 points, or 9.1%, over the previous eight weeks.

Today's retreat came on moderate volume of 700 mln shares at the NYSE and was blamed on concerns the Fed might taper its asset purchase program as early as this month following some better-than-expected initial claims and Q3 GDP data. The headline print for each certainly aided such thinking. Initial claims for the week ending November 30 checked in at just 298,000 (Briefing.com consensus 330,000) while the second estimate for Q3 GDP jumped to 3.6% (Briefing.com consensus 3.0%) from 2.8%.

The headlines had an undeniably encouraging feel to them. That was the first sub-300,000 print for initial claims since early September and the 3.6% growth in Q3 GDP was the strongest since the second quarter of 2010.

Upon closer review, though, the headlines were a little misleading. The Department of Labor acknowledged that seasonal adjustment problems biased the claims number lower (which means we are likely to see a higher print in subsequent weeks) while the change in private inventories accounted for 1.68 percentage points of Q3 GDP growth. Take the change in inventories out of the equation and real final sales were up just 1.9% versus 2.0% in the first estimate. Furthermore, the 1.4% growth rate in personal consumption expenditures was the lowest rate since the fourth quarter of 2009.

A big jump in inventories and a deceleration in personal spending isn't exactly a combination befitting a robust growth picture. In that context, the tapering trade in our estimation probably had more to do today with the angst surrounding the November employment report on Friday than it did with a true read of today's data.

Following the strong ADP Employment Change report on Wednesday, there is a presumption that the nonfarm payrolls number on Friday will also produce a positive surprise. The Briefing.com consensus estimate for nonfarm payrolls is set at 188,000 and at 200,000 for nonfarm private payrolls. Some of that angst was reflected in the Treasury market today, which spent the entire session on the defensive. The 10-yr note dipped eight ticks and its yield rose three basis points to 2.87%.

That bump in long-term rates weighed on rate-sensitive sectors in the stock market, like the financials sector (-0.9%), and particularly those sectors known for their higher dividend yields -- telecom services (-1.0%), utilities (-0.7%), and consumer staples (-0.9%).

Today's profit-taking action was centered primarily on large-cap issues. The Dow Jones Industrial Average, S&P 500, and Nasdaq 100 all finished lower while the Russell 2000 (+0.1%) and S&P 400 Midcap Index (+0.1%) scored small gains.

Gains in a handful of influential large-cap stocks like Apple (AAPL 567.90, +2.90), Boeing (BA 132.72, +1.22), 3M (MMM 126.84, +0.38), Intel (INTC 24.27, +0.53), and Tiffany & Co. (TIF 89.71, +1.13) helped limit today's losses, yet every sector in the S&P still finished in red figures with the exception of the industrials sector which was unchanged.

Another laggard of note today was the US Dollar Index (80.27, -0.35). It got clipped largely on account of the euro taking off after the ECB elected to keep its main lending rate unchanged and ECB President Draghi avoided any telltale hint at his press conference that further easing measures would be implemented in the very near future. The euro crossed at 1.3669 against the dollar, up 0.6% from yesterday.

The dollar weakness did not benefit commodities much and it certainly didn't help gold prices, which slipped 1.7% to $1225.80/oz.

Friday's action is sure to be dictated by the details of the November employment report and the direction long-term interest rates take in its wake.
  • Nasdaq +33.6% YTD
  • Russell 2000 +32.1% YTD
  • S&P 500 +25.2% YTD
  • DJIA +20.8% YTD

Alcatel Replaces STMicro in CAC 40, Les Echos Says

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BN 12/06 05:33 *ALCATEL REPLACES STMICRO IN CAC 40, LES ECHOS SAYS

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Alcatel Replaces STMicro in CAC 40, Les Echos Says 2013-12-06 05:36:48.72 GMT

By David Whitehouse Dec. 6 (Bloomberg) -- Change will be effective on Dec. 23, Les Echos reports, without citing anyone. * Thales will join the CAC Next 20 Index, replacing Hermes: Les Echos.

Link to Company News:{RMS FP <Equity> CN <GO>} Link to Company News:{HO FP <Equity> CN <GO>} Link to Company News:{ALU FP <Equity> CN <GO>} Link to Company News:{STM IM <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: David Whitehouse at +33-1-5365-5059 or dwhitehouse1@bloomberg.net

FT : Shell ditches plans for US gas plant

Shell ditches plans for US gas plant

Royal Dutch Shell has dropped plans for a multibillion-dollar flagship plant in the US that would have converted natural gas into diesel and jet fuel, amid concerns over the costs of the $20bn-plus project. It said the gas-to-liquids plant was "not a viable option for Shell in North America", citing the likely cost, "uncertainties on long-term oil and gas prices and differentials", and the company’s strict capital discipline. Shell had touted the possible GTL plant in the Gulf of Mexico region as a way to exploit the arbitrage opportunities that have opened between cheap and abundant US shale gas and expensive crude oil. However, with shale oil production also now booming in North America, putting downward pressure on US crude prices, that argument looks less compelling. There were also concerns about the price tag. The original estimate suggested a budget of least $12.5bn, but the project was on course to cost more than $20bn. Tens of billions of dollars of investment projects in petrochemical plants and terminals for exporting liquefied natural gas have been proposed for the US gulf region, to take advantage of the shale gas boom, raising fears of shortages of labour and equipment and consequent inflation in construction costs. Shell has come under mounting pressure from investors to show more capital discipline, after spending a record $45bn this year; $5bn more than it had planned. Peter Voser, Shell chief executive, who will leave the job at the start of next year, said: "We are making tough choices here, focusing our efforts and capital on the most attractive opportunities in our worldwide portfolio, to add value for shareholders." The decision leaves Sasol of South Africa as the only company that still has plans to build a large GTL plant in the US. It said in 2011 that it would build a $10bn facility near Lake Charles in Louisiana, which could produce up to 96,000 barrels a day of diesel and naphtha, a chemical feedstock. But the exit of Shell is a big blow to the embryonic GTL industry. Shell is a leader in the technology, having built a $19bn gas-to-liquids plant in Qatar that is one of its flagship projects. As recently as September it announced it had picked a site in Louisiana for the proposed 140,000 barrel per day GTL plant, while continuing to warn that it had not yet made a final decision to go ahead. Simon Henry, Shell’s chief financial officer, hinted that the plan was at risk in a call with analysts at the end of October. The company had three big potential projects under consideration to profit from cheap shale gas in North America, he said: the Louisiana GTL plant, a plan to export LNG from the west coast of Canada, and a new "cracker" in western Pennsylvania that would convert ethane, a natural gas liquid, into ethylene, a standard building block for many plastics. However, Mr Henry added: "We cannot afford to take all three together at once. And even if we could, I’m not sure we have the engineers and the project managers to do so." Shell is also pursuing other gas projects in the US, including an LNG export facility in Georgia being developed as a joint venture with Kinder Morgan, the pipeline group.