TheChek News Flow

Man Group’s employees feel the squeeze at London HQ

Man Group employees are feeling the squeeze at the struggling hedge fund, with staff at its London headquarters being shunted into just one-and-a-half floors of the nine-story building it opened to great fanfare in 2011. One senior executive based at the HQ on the banks of the Thames said: “We are being shoved into a much smaller area, which people aren’t really happy about it. Our fund assets are shrinking and so it seems is our floor space.”

The world’s second-largest hedge fund company has seen its assets under management slump from a peak of almost $80bn in 2008 to $52.5bn, while some 700 employees have departed since Man Group merged with rival GLG Partners in 2010. Although the hedge fund company signed a 20-year lease on Riverbank House in 2011, it never moved in to all nine floors and instead sublet space to Royal Bank of Canada. The intention, however, was to occupy all floors as the company expanded. The squeeze comes as Wall Street hedge fund SAC Capital announced it was to close its London office overlooking St Paul’s Cathedral after pleading guilty to insider trading charges in the US. Brevan Howard, the world’s third-largest hedge fund, also now only has a handful of traders left at its London office in Baker Street after moving most of its operations out of the UK to escape European Union regulation and grow internationally. Man Group, however, said its move was not the result of any further cost-cutting measures than those already communicated. “Previously announced cost savings programmes remain on track,” the company said. In July last year Man Group detailed plans to make $100m of cost savings over the following 18 months. That was on top of $95m of cuts announced four months earlier. The company added: “In August, we entered into a contract to sublet a significant portion of our existing office space in Riverbank House, our main London office and headquarters. This will result in a restructuring charge of approximately $60m. “The move had already been communicated internally to staff, but the shift is taking place now and that could be why you’re hearing a few grumbles.” It is understood the latest move to sublet additional floor space will see law firm Field Fisher Waterhouse occupy three floors at Riverbank House. The head of corporate real estate strategy for a large London-based US bank, who is responsible for working out how much space the bank needs, said such downsizing of floor space is becoming very common. “It’s definitely accelerating,” he said. “Jones Lang LaSalle recently did some research showing that the area per employee has halved in the past 10 years.” In mid-2008, Man Group had a market cap of $20bn. Today it is $2.5bn.

Link to translation : {http://bit.ly/187fmtX} Link to original in french : {http://bit.ly/I2E2aV}

When Harvard demolishes the politics of the left

A professor of the prestigious university by A + B shows that our economic policy is a disaster. But nothing changes. Silence, on flowing!

While France is sinking into a slump absolutely unprecedented, so heavy that no longer knows how to ensure that the Socialists noticing, they find nothing more urgent to tackle the problem of racism. Every day, factories close and companies are liquidated, but this is the page of a newspaper that nobody reads the left devotes his entire attention. Unafraid to caricature itself, this large tax family met this weekend in a theater of Saint-Germain des Prés , at the initiative of Bernard-Henri Lévy .

The president himself went there for his comments from Israel , where he was interviewed by Ruth Elkrief who addressed him as talking to an elderly person who is not certain that we understand good. What struck me, as usual, it is the joy of this man, who despite his plummeting in opinion continues discourse with relish, seeming at times contain an unwelcome amount laugh uncontrollably from the bottom of his unwavering optimism . Hopefully he gives his body to science to provide new ways to neurology.

The economic policy of France is a disaster

The presidential elections gave the political power crazy. These people are so blinded by their dogma to take measures that are in the process of completing the patient. Our country observes aback, his doctor administered him (so to say) the last dose of poison. Good news: if we note that five-year period, we can conquer the world, and beyond.

Professor Philippe Aghion, who teaches economics at Harvard University - which of course will be charged by the UNEF to be a factor right, harmful, subservient to Goldman Sachs, much less useful to the common good that the Department sociology of Lyon 2 -, issued a terse article in Le Monde on 16 November. He said in substance: 1. There are economic policies that work. 2. They have been tested elsewhere and have demonstrated their effectiveness. 3. The economic policy of France is a disaster.

In particular, he writes that "international comparisons show that adjustments based on public spending cuts have helped restore growth, while the adjustment based on the tax impact resulting in heavy and prolonged recession."

Why bats who govern us do not they listen to this man? Who else do they listen? Cécile Duflot and his degree in geography? Benoît Hamon and his BA in History? Yamina Benguigui and outstanding contribution to French politics? Who we entrusted the famous monopoly of legitimate violence, the right to make laws, to give orders to the prefects, to order the administration to issue circulars to appoint such and such Director or such such institution, to represent us on the international stage, to decide immigration policy, military interventions, school programs? How far will they go, and stop them? Gaspard Proust was right to point out that with the polls, the head of state would soon be able to know the identity of those who support it. Journalists Minute, maybe. By gratitude.

Hirzel Takes 6% Stake in Aéropostale

Investor Says Shares in the Teen Retailer Are Undervalued.

One more investor thinks teen retailer Aéropostale ARO +3.93% is hipper than it looks.

The apparel retailer's stock has fallen 27% amid wider troubles in the teen sector, but Dallas-based private investment firm Hirzel Capital Management LLC has taken a 6% stake in Aéropostale Inc. and called the shares undervalued.

Hirzel reported its stake Tuesday in a securities filing and said it plans to have discussions with management. The firm said the stake was taken for investment reasons and not for the purpose of acquiring control.

A representative for Aéropostale declined to comment. The company's shares rose 2.5% to $9.75 in after-hours trading.

Hirzel is the latest investor to get involved with the youth-focused apparel retailer. In September, Hummingbird LLC, which later changed its name to Lemur LLC and is indirectly owned by Sycamore Partners, reported a nearly 8% stake in the retailer, calling the company "an attractive investment."

Sycamore Partners has previously taken stakes in women's fashion retailer Talbots and teen retailer Hot Topic. It later took both companies private.

The teen retail sector, including Aéropostale, has been troubled by the rise of fast-fashion chains like Hennes & Mauritz HM-B.SK -0.58% and Forever 21.

Aéropostale, which operates children's and teen retail chains, has faced challenges in its core basics business, especially with its graphic T-shirts and fleeces. The company has been working to integrate more fashion into its product mix.

Rival Abercrombie & Fitch Co. warned early this month it expects a big drop in sales and margin pressure for the holiday period. "We recognize that our businesses have been and will continue to be disrupted by both fast fashion, H&M, Forever 21, and pure-play e-com competitors," said Leslee Herro, executive vice president for planning and allocation.

Metro Cash & Carry Russia IPO could exceed USD 1bn, Sberbank and Goldman Sachs possible organisers

Metro Cash & Carry is looking to conduct an IPO of its Russian subsidiary in 2H 2014, Vedomosti reported, citing a source in banking sector. The IPO of Russian Metro Cash & Carry business could exceed USD 1bn, and the parent company will retain a small stake, the article in Russian-language reported.

According to the report, Sberbank and Goldman Sachs may organise the deal.

There are 68 trading centres of Metro Cash & Carry operating in Russia, the report added.

Source Vedomosti

US funds place big bets on euro bank recovery

US fund managers have been making multibillion-dollar bets on the recovery of banks in the eurozone over the past four months in the belief that the region’s stuttering economic recovery will soon start to gather steam. The move follows a slight increase in eurozone economic growth in the second quarter, which was seen by many investors as the clearest indication yet that the worst peacetime economic upheaval since the Great Depression is coming to an end.

European Banking Authority chair interview, former Co-op Bank chair in drugs admission and Rothschild to open London merchant bank The value of the shares reported as owned by US-based funds in the region’s 10 largest listed banks has risen 40 per cent from June this year to €33bn, according to FT calculations based on Thomson Reuters data. The number of shares reported as owned rose 10 per cent over the same period, following big investments from groups such as T Rowe Price, BlackRock, Waddle & Reed.

Jason White, portfolio specialist at T Rowe Price, said the Baltimore-based company had increased its exposure recently, adding that European bank stocks had started looking extremely cheap given the improving situation. “The economy is moving from being a headwind to a tailwind, or at least to no wind, and that can be pretty powerful,” Mr White said. “Even if it is just a case that the trends stop getting worse, that can be a catalyst for shares.” The Reuters data set, which relies on publicly disclosed information, details the ownership of about 40 per cent of the total outstanding shares in the 10 banks, giving a snapshot of many of the largest holdings. Some investors and bankers said that the return of US money to the eurozone financial sector this year had been encouraged by a sense that European regulators may be getting a grip on the sector. The European Central Bank is about to embark on an “asset quality review” of the eurozone’s banks, to be followed by an EU-wide stress test, with the aim of debunking sceptics’ fears that the region’s lenders are hiding a glut of bad assets. Ruth Nagle, lead portfolio manager for the financial sector on BlackRock’s Global Opportunities funds, described the moves towards a single regulator under the ECB as “progress”. She said it would help standardise financial reporting and enable investors compare banks across the eurozone. The rise in reported ownership by US fund managers follows a dramatic fall during the debt crisis in 2011, where the number of shares they held decreased by a fifth. The flow of crucial short term money markets funding dried also dried up. The US share of ownership in the banking sector has been steadily increasing this year, but it has only really picked since June. However, the third-quarter growth figures was an anaemic 0.1 per cent, following the better than expected 0.3 per cent in the second quarter, which could dampen the trend. There has been a return of US money market funds over the past year as well. Money markets funds have increased lending to eurozone banks by 89 per cent, to around €200bn, according to Fitch, the rating agency.

Devon nears $6bn deal for GeoSouthern

Devon Energy is close to buying GeoSouthern Energy in a $6bn deal that will accelerate the US group’s shift away from gas and into more lucrative oil production, according to people familiar with the situation. The purchase of its smaller rival will give Devon, which has a market capitalisation of more than $25bn, significant exposure to the Eagle Ford shale formation in south Texas, one of the heartlands of the US oil boom of the past four years.

Devon operates one of the largest exploration and production businesses in North America, averaging output of 691,800 barrels of oil equivalent per day in the first nine months of the year. GeoSouthern, based near Houston, was the largest privately held US producer of oil and related liquids in the first half of this year, according to IHS data, rising from fourth place last year. It is a leading producer in the Eagle Ford shale, with leases in the region’s most productive areas. The acquisition of GeoSouthern, whose investors include private equity group Blackstone, would mark Devon’s second deal in as many months. In October, it agreed to combine the bulk of its US pipeline and processing assets with those of Crosstex Energy to form a new midstream business. The deal extends Devon’s strategy to cut its reliance on natural gas production, which has been hit by a collapse in prices over the past five years. The company has been reallocating resources away from gas and into oil and natural gas liquids such as ethane, which account for just 40 per cent of the group’s output by energy content but about 60 per cent of its revenues from production. The acquisition could also redeploy some of the $4.3bn in cash that Devon holds, $3.6bn of it offshore, following the sale of its international and Gulf of Mexico businesses in 2010. Devon said in a call with analysts earlier this month that it expected to be able to bring $2bn of that cash into the US at a highly favourable tax rate of just 4 to 6 per cent before the end of the year. Devon’s shares rose 5 per cent to $62.77 after the news emerged of the prospective deal, which was first reported by the Wall Street Journal. Devon and Blackstone refused to comment. GeoSouthern did not respond to requests for comment.

Investors Show Interest in Bankia Appetite for the Bank Is Part of Spain's Turnaround Story

MADRID—Spain has received expressions of interest from investors for part of its 70% stake in Bankia SA, BKIA.MC -4.59% Finance Minister Luis de Guindos said, an indication that the lender at the heart of the country's banking crisis may return to private hands sooner than expected.

"There's interest; it is logical. The perception of Spain has improved, and Bankia's image has improved a lot," Mr. De Guindos told The Wall Street Journal and correspondents of four European newspapers. "The bank has been cleaned up, its restructuring plan is ahead of schedule and it has a solid management team."

He cautioned, however, that Spain has no imminent plan to start selling its Bankia shares. "We haven't made a decision," said Mr. De Guindos, whose ministry is overseeing the cleanup. "We believe that, as time passes, the perception of Bankia will improve further."

The European Union, which bailed out Spain's banking system last year, has given the government until 2017 to complete a restructuring of Bankia and sell its stake. At Tuesday's share price, a 70% stake would be valued at about €7.9 billion.

Prime Minister Mariano Rajoy's government alarmed global investors in May 2012 when it moved to nationalize Bankia with a plan to inject €19 billion ($25.7 billion) into the bank. Doubts about the country's solvency were rampant, and investors yanked money out of Spain, making it almost impossible for the government to finance itself and forcing it to seek an EU rescue for the weakest lenders.

Bankia received about half of the €41 billion Spain used under the bailout program, which formally ends in early January.

In recent months, investors have begun to look at Spain in a different light, thanks in part to the banking-industry cleanup. Money is pouring back into the euro zone's fourth-largest economy, which emerged from a two-year recession in the third quarter of this year. Foreign investors have snapped up property, bank stocks, corporate bonds and other assets they shunned last year.

"Spain seems to have been able to convince investors that it is heading in the right direction," said Nicholas Spiro, managing director of Spiro Sovereign Strategy. "Investors see a turnaround story there."

Madrid's stock market has rallied this year, and investor demand has driven down Spain's borrowing costs.

The government has cut public spending and raised taxes to meet an EU target that it reduce its budget deficit to 6.5% of gross domestic product this year and 5.8% next year, from 6.8% in 2012. Mr. De Guindos said that for the first time in five years, Spain is on track to meet its deficit target, thanks also to lower borrowing costs, which will reduce government spending on interest payments by approximately €8.5 billion this year.

"There's no risk of slippage" this year, he said.

While the EU has said that Spain can meet its deficit goal for this year, officials in Brussels predict that it will miss its 2014 target by 0.1 percentage point, and they are advising the government to make additional cuts. Mr. De Guindos said that won't be needed because the impact of some structural overhauls has yet to show up in the numbers.

Mr. De Guindos said the government is in the final stages of selling another rescued lender, Novagalicia Banco.

Several Spanish banks and international investment funds have studied Novagalicia's books in recent weeks, and some of them are likely to file binding offers this week. The government is looking to wrap up the sale of Novagalicia before the end of the year, Mr. De Guindos said.

US Market Closed lowerm with financials (+0.2%) & energy (+0.2%) leading but industrials still weak (-0.7%)...tech still weak...light volume on the NYSE @ 646m shares...- Bernanke struck a familiar dovish tone, reiterating that interest rates may remain near zero for considerable time after bond buys end, and possibly well after unemployment declines to less than 6.5%. Bernanke also continued to imply that the Fed remains extremely data-dependent without a clear outlook for the start of the taper, noting the FOMC would only start to slow bond buys if labor market and inflation align with its projections... today is a busy economic day..MBA Morg, Retail sale, business invc....VIX @ 13.39 +2.21%...Brazil-2.35%...Japan posts its 3rd largest trade deficit as energy impor costs mount; ...China conference board leading index at a 3-month low; Resident economist noted growth slowed due to weak real estate activity, only partly offset by an improved outlook for manufacturing production and exports. Recall overnight, PBoC announced it would end FX interventions, establishing a managed float rate and expanding a daily trading band...Nikkei -0.3%...Shanghai +0.6%

Eur$ 1.3539 S&P Fut -0.03% European Fut -0.35%

Keep an eye on :

- BKIA SM : Bankia attracts interest from investors - WSJ - MEO GY : Metro Cash & Carry Russia IPO could exceed USD 1bn, Sberbank and Goldman Sachs possible organisers - NYX FP : Euronext CEO Sees Consolidation of EU Equity Markets: Les Echos - UG FP : Peugeot board mandates manag for continuing negotiations with Dongfeng - PC IM : Schematrentaquattro Launches EU200m Bond Offer for Pirelli Shrs - RNO FP : Global Vehicle Market May Grow 2-3% Next Yr, Nissan's Ghosn Says - ROG VX : Roche’s Kadcyla Approved in EU for HER2-Positive Breast Cancer - SAP GY : SAP, China Telecom Expand Partnership in Cloud Computing - SAS SS : SAS Says 2012/2013 Profit Not a One-Time Occurrence, SvD Reports - STLN SW : Schmolz & Bickenbach 3Q Loss Narrows, Sees 2013 Revenue Drop - TESB BB : Tessenderlo Sells Aliphos Unit to EcoPhos for Undisclosed Terms - TFI FP : French team qualified for Worldcup --> +ve, TF1, Discovery Discuss If Call Option to Be Exercised Early - TKA GY : ThyssenKrupp U.S. Disposal Seen With No More Writedowns, HB Says - TKA GY : ThyssenKrupp Doesn’t Rule Out Capital Increase - ZC FP : Zodiac Predicts 2013-14 Organic Growth in ‘Buoyant’ Environment, to propose 5 for 1 stock split

Ups

*ABERDEEN ASSET RAISED TO NEUTRAL VS UNDERPERFORM AT BOFAML *KCOM RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN *LAYNE CHRISTENSEN RAISED TO NEUTRAL VS SELL AT UBS *METRO RAISED TO OVERWEIGHT AT BARCLAYS *PIERRE & VACANCES RAISED TO BUY VS HOLD AT SOCGEN *WH SMITH RAISED TO OVERWEIGHT VS UNDERWEIGHT AT JPMORGAN

Down

*BANCO POPOLARE CUT TO HOLD VS ADD AT BANCA IMI *DAISY CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN *DANSKE BANK CUT TO SELL VS HOLD AT SOCGEN *DEUTSCHE POST CUT TO NEUTRAL VS BUY AT BOFAML *GSW IMMOBILIEN CUT TO SELL VS HOLD AT BANKHAUS LAMPE *INDITEX CUT TO NEUTRAL VS BUY AT BOFAML *INTERTEK CUT TO UNDERPERFORM VS SECTOR PERFORM AT RBC *NORDEA CUT TO HOLD VS BUY AT SOCGEN *WIRECARD CUT TO EQUALWEIGHT FROM OVERWEIGHT AT BARCLAYS

PT Change

*KBC ANCORA PT RAISED TO EU33.20 FROM EU22.80 AT ING *PIRELLI PT RAISED TO EU13 VS EU12 AT UBS; KEPT AT BUY *SWATCH PT RAISED TO CHF650 VS CHF600 AT CANTOR; KEPT AT BUY

Initiation

*BARRATT DEVELOPMENTS RATED NEW OVERWEIGHT AT BARCLAYS *BELLWAY RATED NEW UNDERWEIGHT AT BARCLAYS; PT 1498.1P *BERKELEY GRP RATED NEW EQUALWEIGHT AT BARCLAYS; PT 2454.7P *BOVIS HOMES RATED NEW UNDERWEIGHT AT BARCLAYS; PT 778.1P *EMPERIA RATED NEW BUY AT ING *GALLIFORD TRY RATED NEW EQUALWEIGHT AT BARCLAYS; PT 1200.1P *PERSIMMON RATED NEW EQUALWEIGHT AT BARCLAYS; PT 1260.4P *REDROW RATED NEW OVERWEIGHT AT BARCLAYS; PT 356.0P *ROYAL MAIL RATED NEW SECTOR PERFORM AT RBC, PT 580P *ROYAL MAIL RATED NEW SELL AT UBS, PT 450P *ROYAL MAIL RATED NEW NEUTRAL AT BOFAML; PT 580P *ROYAL MAIL RATED NEW EQUALWEIGHT AT BARCLAYS; PT 466P *TAYLOR WIMPEY RATED NEW OVERWEIGHT AT BARCLAYS; PT 146.8P

Country Sector Stock Call

*ENKA INSAAT CUT FROM UBS’S EMEA MOST PREFERRED LIST

Asian Market Update: Japan posts its 3rd largest trade deficit as energy import costs mount; Bernanke maintaining dovish stance

***Observations/Insights*** - Japan trade deficit spikes to its highest level on record for October and also the 3rd highest monthly deficit overall; Exports are up 18.6%, but imports outpaced outbound shipments with a 26% increase - 12th consecutive rise and the highest rate since June 2010. Exports to US, China, and Europe are up over 20%, however Japan remains hamstrung by high energy costs. Crude oil imports were up 68%, with weak JPY and continued reliance on foreign oil exacerbated by continued shutdown of its nuclear industry. - China conference board leading index at a 3-month low; Resident economist noted growth slowed due to weak real estate activity, only partly offset by an improved outlook for manufacturing production and exports. Recall overnight, PBoC announced it would end FX interventions, establishing a managed float rate and expanding a daily trading band. - Out of Australia, Westpac leading index improved slightly; Bank economist said the recent above-trend growth in the Index is pointing to a much better outcome over the next few quarters, with forecasts accounting for an unusually significant drag from the downturn in mining investment. Notably, BHP CEO expressed confidence that the early indications from the Chinese government's recent economic policy summit were positive for Australia and its mining industry, suggesting demand for natural resources may prove to be stronger than currently believed. - Outgoing Fed chief Bernanke struck a familiar dovish tone, reiterating that interest rates may remain near zero for considerable time after bond buys end, and possibly well after unemployment declines to less than 6.5%. Bernanke also continued to imply that the Fed remains extremely data-dependent without a clear outlook for the start of the taper, noting the FOMC would only start to slow bond buys if labor market and inflation align with its projections.

***Economic Data*** - (CN) CHINA OCT CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: 0.6% V 1.1% PRIOR (3-month low) - (JP) JAPAN OCT MERCHANDISE TRADE BALANCE: -¥1.09T V -¥854BE (record 16th consecutive deficit); ADJUSTED MERCHANDISE TRADE BALANCE: -¥1.07T V -¥875BE - (JP) JAPAN SEPT ALL INDUSTRY ACTIVITY INDEX M/M: 0.4% V 0.4%E - (AU) AUSTRALIA SEPT WESTPAC LEADING INDEX M/M: +0.1% V -0.1% PRIOR - (AU) AUSTRALIA OCT DEWR SKILLED VACANCIES M/M: -0.1% V -0.3% PRIOR - (NZ) NEW ZEALAND Q3 PPI INPUT: 2.2% V 0.6% PRIOR (2 1/2 year high); PPI OUTPUT: 2.4% V 1.0% PRIOR (5-year high) - (KR) SOUTH KOREA Q3 SHORT-TERM EXTERNAL DEBT: $111.5B V $119.6B PRIOR

- (US) NORTH AMERICA OCT SEMI BOOK/BILL RATIO: 1.05 V 0.97 PRIOR (above parity for the first time in 3 months; first sequential increase in 4 months) - (CL) CHILE CENTRAL BANK CUTS OVERNIGHT RATE TARGET BY 25BPS TO 4.50%, AS EXPECTED

***Fixed Income/Commodities/Currencies*** - (CN) China MoF auctions 10-yr bonds, Avg yield 4.7121% (highest yield in 9 years) - (JP) BOJ offers to buy ¥250B in 1-3 yr JGBs, ¥350B in 3-5yr JGBs, and ¥200B JGB with maturity over 10-yr

- GLD: SPDR Gold Trust ETF daily holdings fall 1.5 tonnes to 863.0 tonnes (lowest since Feb 2009) - (US) API PETROLEUM INVENTORIES: CRUDE: +510K v +1Me (lowest build in 8 weeks)

- USD/CNY: (CN) PBoC sets yuan mid point at 6.1305 v 6.1317 prior setting (record high setting for Yuan)

- USD saw some brief weakness against its major counterparts following a fairly dovish set of comments from Bernanke but has since reversed course in the afternoon session. USD/JPY fell 30pips below ¥100 and EUR/USD spiked up 40pips toward $1.3580 before retreating to $1.3550. AUD/USD and NZD/USD are being sold more heavily in the afternoon, with the former down 50pips from the highs below $0.94 and the latter off by 60pips from the highs around $0.8330.

***Speakers/Political/In the Papers*** - (CN) China National Development and Reform Commission (NDRC): China H1 industrial capacity utilization rate 78% (lowest since late 2009) - (CN) PBoC deputy gov Hu: To increase 2-way floating flexibility of yuan rate and also phase out investment caps on foreign/domestic investors; China should provide appropriate liquidity into economy - financial press - (CN) Fitch: China new reform could have positive impact on local govt credit ratings

- (JP) Japan Reform Panel to recommend GPIF should invest in inflation-linked JGBs - financial press - (JP) Japan Finance Ministry panel (FSC) to recommend end to farm protection at Nov end; vt panel will propose an end to protection measures for farmers as part of plans to increase competitiveness of Japan's agriculture and entry into the Trans-Pacific Partnership (TPP) free trade agreement - Kyodo News

- (AU) RBA Dep Gov Debelle: Regulation aims to ensure risk remains priced into market- CIFR Forum speech - (AU) Australia Treasury official Gruen: mining investment is slowed by high AUD

- (KR) Bank of Korea Gov Kim: Inflation lower than expected

- (US) Fed Chairman Bernanke: Rates may remain near zero for considerable time after bond buys end, and possible well after unemployment declines to less than 6.5% - National Economists Club speech - (CA) BoC Dep Gov Murray: Market forces pushing prices and exchange rates in right direction

- (EU) Moody's: Sees 2014 Euro Area GDP at 0.5-1.5%; 2013 GDP at -1% to flat

***Equities*** Market Snapshot (as of 03:30 GMT): - Nikkei225 -0.1%, S&P/ASX -0.8%, Kospi -0.5%, Shanghai Composite -0.1%, Hang Seng +0.3%, Dec S&P500 -0.2% at 1,788, Dec gold +0.1% at $1,274, Dec crude oil +0.3% at $93.62/brl

US markets: - LZB: Reports Q2 $0.32 v $0.26e, R$366.4M v $350Me; Raises quarterly dividend by 50% to $0.06/shr from $0.04/shr; +8.4% afterhours - YHOO: Announces share repurchase authorisation by $5B (14% of market cap); proposes to offer $1.0B (2.7% of market cap) aggregate principal amount of its convertible senior notes due 2018; +2.8% afterhours - NHI: To acquire 25 Independent Living Facilities from Affiliate of Holiday Retirement for $491M; -1.7% afterhours

Notable movers by sector: - Consumer discretionary: Oriental Press Group 18.HK -7.0% (issues profit warning); Kathmandu Holdings Ltd KMD.AU -2.9% (Q1 outlook in AGM) - Consumer staples: Wanjia Group Holdings Ltd 401.HK +4.2% (signs MOU on marketing channels) - Industrials: Suzuki Motor Corp 7269.JP +0.7% (new vehicles plans); Virgin Australia VAH.AU -2.6% (comments on capital raising) - Materials: Anhui Jingcheng Copper Share Co Ltd 002171.CN +1.3%, Xinyi Glass Holding Co Ltd 868.HK +1.6% (plans for private banking); Drillsearch Energy Ltd DLS.AU +4.0% (operations update); - Financials: Shenyin Wanguo 218.HK +4.4% (confirms plan for merger); Tibet Urban Development and Investment Co Ltd 600773.CN +7.3% (investment plans) - Technology: Digital China 861.HK -8.0% (Q2 results); AU Optronics Corp 2409.TW +1.8% (secures loan); Sony Corp 6758.JP -0.9% (comments on PS4); Sharp Corp 6753.JP +6.8% (partners with Hewlett-Packard) - Telecom: China Mobile 941.HK -0.9% (Oct metrics)