Eurazeo Credit Agricole to reduce its stake through at least 3.2M share placement and convertible debt sale - Bonds convertible into a total of up to 5.1M shares -
Tullow Oil Announces Agete-1 oil discovery - Announces that the Agete-1 exploration well in Block 13T, onshore Northern Kenya, has discovered and sampled moveable oil with an estimated 100 metres of net oil pay in good quality sandstone reservoirs. - The Agete-1 wildcat well is part of a major exploration campaign and has made the fifth consecutive oil discovery in the first of a chain of multiple rift basins across Tullow's acreage in the region. This discovery de-risks several follow-on prospects located to the north and is on trend with the Twiga South, Ekales, and Ngamia oil discoveries and adds to the significant resource base already discovered. - The Sakson PR5 rig drilled Agete-1 to a total depth of 1,930 metres. Following completion of logging operations the well will be suspended for future flow testing which will confirm the net pay count. The rig will then move to drill the Ewoi-1 wildcat in the east of this basin, targeting a rift flank prospect similar to the recent Etuko oil discovery. - Tullow operates the Agete-1 well with a 50% interest and Africa Oil (50%) has a non-operated interest.
--> Another $6bn into Equities (= $235bn YTD); $3bn into bonds; outflows from Gold.
*On course for biggest Equity inflows since 2004…but investor sentiment is not frothy enough to make correction call: our Bull & Bear Index is at 6.4, i.e. below 8 (Chart 1); our Global Flow Trading Rule is in neutral territory & would require an improbable $16bn of long-only equity inflows in next 2 weeks to trigger “sell” signal
*Inflows to Europe equity funds exceeding inflows to US equity funds as % AUM by widest margin since Apr’09…pain trade into year-end remains US over Europe
Asset Class Flows
* Equities: $6.0bn inflows ($3.1bn inflows via ETF’s) (Table 1) * Bonds: $2.9bn inflows * Precious metals: 10 straight weeks of outflows
Equity Flows
* EM: 4 straight weeks of outflows (albeit tiny $0.1bn) (Table 2) * Europe: 21 straight weeks of inflows ($1.9bn) * Japan: first outflows in 11 weeks * US: $1.8bn inflows, but note divergence between outflows from large-cap and inflows to SMID-cap
Fixed Income Flows
* Largest weekly inflows to IG bond funds since May’13 ($3.0bn) (but dominated by inflows to one fund) * $1.6bn inflows to HY bond funds (inflows in 10 out of past 11 weeks) * 8 straight weeks of outflows from EM debt funds ($1.4bn) (outflows in 25 out of past 26 weeks) * 32 straight weeks of outflows from TIPS * 27 straight weeks of outflows from MBS * 74 straight weeks of inflows to floating-rate debt
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Mediaset Offers Significant Upside, Goldman Says; Keeps CL Buy 2013-11-22 07:02:47.909 GMT
By Blanche Gatt Nov. 22 (Bloomberg) -- Mediaset offers “significant upside” as structural, competitive outlook improves, Goldman Sachs says in note. * Goldman says upside to come also from ad recovery, self-help measures * Political risks “overstated,” Goldman says * Strong FCF generation, SOTP offer support to valuation * Reiterates Conviction List buy * 5 buys, 9 holds, 11 sells; avg. PT EU3.5 implies upside of 6.8%; up 110% YTD: Bloomberg data * NOTE Nov. 13: Mediaset PT raised to EU3.3 vs EU3 at Kepler Cheuvreux; raised to EU5.6 vs EU4.4 at Credit Suisse
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
To contact the reporter on this story: Blanche Gatt in London at +44-20-7392-0351 or bgatt@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net
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BN 11/21 23:01 KPN Sees America Movil Sticking With Stake After Takeover Snub
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KPN Sees America Movil Sticking With Stake After Takeover Snub 2013-11-22 07:03:47.603 GMT
By Sam Chambers Nov. 22 (Bloomberg) -- Given KPN’s current share price and price AMX paid for its stake, AMX is likely to keep its stake, KPN CEO Eelco Blok says at investor conf. yday. * Blok expects some remedies to be imposed on E-Plus sale, although says he thinks regulator will be “positive” about deal * NOTE: German Cartel Office wants referral of E-Plus case * KPN wants to retain financial flexibility for potential opportunities for small in-mkt consolidation in Netherlands, Blok says. Story * NOTE: Tele2 considering sale of its Dutch fixed business
For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>
--With assistance from Patricia Laya in Mexico City. Editor: James Ludden
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
*TULLOW SAYS HAS DISCOVERED MOVEABLE OIL IN KENYA
US MArket closed on highs, tech was leading the move (Nasdaq+1.2%)...Retail sector was underpressure after cautious comments regarding the holiday Quarter but sector managed to close in black...VIX -5.52% @ 12.66... Brazil -0.65%... Tokyo stocks traded up into the lunch break but have since pared those gains on mixed set of comments by BOJ Gov Kuroda. Speaking in Parliament, Kuroda initially noted JPY weakness is not excessive, but then directed more attention toward the options for an eventual exit from easy policy, reiterating overnight remarks that any additional easing is not being considered at the moment. USD/ JPY traded up above 101.30 but has since pulled back toward the 101 yen handle. ...Shanghai Composite is also on the defensive in the afternoon session, falling back below the technically key 2,200 level. S&P expressed some skepticism over China's ability to transition its economy into a consumption-driven one quickly. Separately, a PBoC official said the central bank will continue to request that local banks delever, and also noted the overall economy has entered into a long-term deleveraging process...Nikkei +0.10%...Shanghai-0.35%
Eur$ 1.3485 S&P Fut -0.05% European Futures +0.13%
Keep ane eye on : - ASSAB SS : Assa Abloy Sees Return to 5% Organic Growth, Morgan Stanley Says - CON GY : Raised forecast for sales of driver assistance systems,Now targeting €1B in sales of driver assistance systems in 2016 vs prior view of 2020. - EAD FP : EADS Restructuring May Mean Job Cuts at Eurocopter: La Lettre - F IM : Chrysler Banks Said to Weigh IPO Valuation of About $10 Billion - GSK LN : MolMed May Make Experimental Gene Therapy for GlaxoSmithKline - MAERSK DC : Maersk to Get More Oil From North Sea With New Technology: JP - MMB FP : Lagardere to Shrink Revenue From Print Products, Sell Magazines - NOVN VX : Novartis Plans $5b Share Buyback Starting Immediately - NUM FP : Numericable CFO Lemaitre Says SFR Merger Makes Strategic Sense - PHOR LI : Phosagro May Merge Its Production Units With Apatit: Vedomosti - REA BB : RealDolmen 1H Net Income EU4.52m Vs EU16.6m Loss - RHK GY : Rhoen-Klinikum Says Braun Sues to Block Sale of Clinics - RIO LN : Rio Tinto Signs $7.5 Billion Revolving Loans To Refinance Debt - RNO FP : Renault Has Oral Agreement From China for Dongfeng JV: Echos - SAN FP : Sanofi Rheumatoid Arthritis Drug Reduces Pain, Damage in Study - SGL GY : BMW& SGL Carbon are planning to double production capacities for carbon - TKTT FP : Tarkett IPO, start trading today (€530mil mkt cap), priced @ €29 - HO FP : Thales Australia Wins Support Contract for 4 Aust. Navy Ships - TUI GY : Fredriksen Raises TUI AG Stake, Sell All Shares in TUI Travel - VIV FP : Numericable CFO Lemaitre Says SFR Merger Makes Strategic Sense - WIND IM : Wind and 3 Italia likely to merge in near future
Up
*BANK LEUMI RAISED TO NEUTRAL VS SELL AT CITI *DAILY MAIL RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS *KUEHNE & NAGEL RAISED TO BUY VS NEUTRAL AT GOLDMAN *SERCO RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE *WHITBREAD RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN *WILLIAM HILL RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
Down
*FLUGHAFEN ZUERICH CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE *PUBLIC POWER CUT TO NEUTRAL VS BUY AT CITI *SAPPI CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
PT Changes
*Johnson Matthey PT Raised to 3,650p vs 3,050p at Deutsche Bank
Initiation
*AHOLD REINSTATED BUY AT BOFAML, PT EU15 *CARREFOUR REINSTATED BUY AT BOFAML, PT EU32 *CASINO GUICHARD REINSTATED BUY AT BOFAML, PT EU95 *COLRUYT REINSTATED UNDERPERFORM AT BOFAML, PT EU36 *DELHAIZE REINSTATED UNDERPERFORM AT BOFAML, PT EU39 *JERONIMO MARTINS REINSTATED UNDERPERFORM AT BOFAML, PT EU13 *MERLIN ENTERTAINMENTS RATED NEW BUY AT DEUTSCHE BANK; PT 395P *MORRISON REINSTATED BUY AT BOFAML, PT 325P *QIWI RATED NEW BUY AT GOLDMAN, PT $70 *ROYAL MAIL RATED NEW NEUTRAL AT NOMURA; PT 400P *ZODIAC AEROSPACE RATED NEW EQUALWEIGHT AT MORGAN STANLEY, GIVEN NEW PT OF EU130
Country Sector Stock Call
*BOFAML REINSTATE FOOD RETAIL IN EUROPE *STADA ADDED TO UBS’S MOST PREFERRED LIST *Panalpina Named a Least Preferred Stock at Citi
Citi Screens for Stocks with Decent Div. Yields and/or Growth
Highlights global divs. have risen 15% since 2011 in USD despite flat EPS.
* Says a drop in div. yld from 3.1% to 2.5% seems less intimidating than 12x to 17x rise in trailing PE * Says payout ratios have risen but are still well below historic norms; sees plenty of scope for cos. to pay out more * Says div. growth has become increasingly important driver of global equities, perhaps more important than EPS growth * Also sees evidence that div. growth is now as important as yld in driving price performance * Screens for those regions, sectors, stocks that offer best trade-off between div. yld and growth * Among regions says CEEMEA shows strongly * Among global sectors, says Financials stands out * Imposes 2% yield cut-off to stop it being dominated by cos. increasing divs from very low base; also limit number of Financials to 10 stocks - List includes KBC, SocGen, Maybank, Danske Bank, Credit Agricole, UniCredit, Lloyds Banking, UBS, Capital One, Swedbank, Agrium Inc, CA Inc, Apple, Ford Motor, Las Vegas Sands, Potash Corp of Saskatchewan, Phillips 66, Cisco Systems, Sands China, The Williams Companies, Woodside Petroleum, Seagate Technology, Toyota Motor, Kraft Foods, AbbVie, Japan Tobacco, Mosaic Co, Valero Energy Corp, EADS, HeidelbergCement, Lukoil, Givaudan, Marathon Petroleum, Macy’s Inc, JFE Holdings, Mobile Telesystems OJSC, MTN Group, Telenor, Seadrill, Nissan Motor
Dan Loeb, the activist investor pushing for change at Sony, has revealed another “$1bn plus” position in a Japanese company, this time telecom and internet group SoftBank. Speaking at the Robin Hood Investors Conference in New York, Mr Loeb said he had followed up his big share purchase – about 1 per cent of the company – with a meeting with SoftBank’s founder Masayoshi Son in Japan in recent weeks.
The value of SoftBank’s stakes in US telecom company Sprint and Chinese ecommerce site Alibaba were particular attractions, Mr Loeb said. He also heaped praise on Mr Son’s leadership. Sony’s entertainment group found itself in the spotlight this year when Mr Loeb wrote a blistering letter saying it was “characterised by a complete lack of accountability and poor financial controls”. Mr Loeb, who has spent more than $1bn amassing a Sony stake, proposed a partial spin-off of Sony’s entertainment group, which was rejected by the company’s board. Sony promised to cut the number of Hollywood movies it releases each year and focus more of its resources on television series productions as it responded to stinging criticism of the company from Mr Loeb. Kazuo Hirai, Sony’s chief executive, told an investor conference that the company’s entertainment division, which includes film, TV and music, “must get better”. He acknowledged the poor performance of Sony Pictures this summer, which released a string of flops, such as After Earth, starring Will Smith, but told investors entertainment was “a core part of Sony” that was “crucial to our future growth”. The investor day at Sony Pictures’ studio in Culver City, California aimed to address some of Mr Loeb’s criticisms. Amy Pascal, co-chairman of Sony Pictures Entertainment, said the studio was pushing for a “more equitable balance between risk and reward” with its investments in movies and would release fewer films – about 18 per year, compared with “low 20s” in recent years. The studio had cut the number of expensive “first look” deals with top stars, she said, adding that Sony would not “work with directors . . . who are unable to respect the budgets of our films”. Sony Pictures has appointed Bain & Co to advise on cost-cutting with the aim of saving $100m or more. Michael Lynton, chief executive of Sony Entertainment, said the company would make a “significant shift from motion pictures to higher margin television production and networks”. The studio has scored with acclaimed hits such as Breaking Bad and its recent series, The Black List, which has been a ratings winner on the NBC network. Steve Mosko, president of Sony Pictures Television, said the company had sold 38 different series to 16 television networks. “That’s up more than 200 per cent over our slate 10 years ago,” he said.