(BFW) *GEMINA SHARES SAID TO BE PLACED AT EU1.69 EACH

+------------------------------------------------------------------------------+

BN 11/12 09:08 *GEMINA SHARES SAID TO BE PLACED AT EU1.69 EACH

+------------------------------------------------------------------------------+

*GEMINA SHARES SAID TO BE PLACED AT EU1.69 EACH 2013-11-12 09:10:19.569 GMT

--BRIAN LYSAGHT

-0- Nov/12/2013 09:10 GMT

WSJ : Larry Summers: In China and India, Beware of ‘Asiaphoria’

With the top leaders of China’s Communist Party scheduled to release today their economic strategy for the coming decade, they would do well to consider the warning of former U.S. Treasury Secretary Lawrence Summers: Don’t count on fast growth to continue, and don’t get seduced by what he and fellow economist Lant Pritchett dub “Asiaphoria.”

Messrs. Summers and Pritchett, both Harvard economists, have long worked together on theories of economic growth. At a recent San Francisco Federal Reserve conference, they warned that rapid growth in India and China could come to a fast, unexpected halt. “Hitching the cart of the future global economy to the horse of the Asian giants carries substantial risks,” they write. The two economists don’t claim to have found specific roadblocks that will halt either country’s progress. Rather, they argue that the growth patterns of wealthy and developing countries over the last century or so suggest that “episodes of super-rapid growth tend to be of short duration and end in decelerations back to the world average growth rate.” Since China and India are already on extended rolls– though India’s has slowed recently– that would put them in danger of a bad fall. “The single most robust and striking fact about cross-national growth rates is regression to the mean,” they write – using economist jargon to argue that a couple of decades of fast growth is no guarantee of continued rapid growth. Just the opposite. Such growth is bound to end, as country growth rates fall to near the global average. Think about a baseball hitter on a hot streak, they say. If his batting average is up 50 points over the last 20 at bats “then we would forecast a return to the average batting average over the next 20 at bats,” they write. The batter and his hitting coach may have no idea why there is such variation. “But mainly, that is just what happens,” the economists say. They do venture one weakness that could cause either country to stumble: their legal systems. “In neither country does investor confidence rely on rule of law,” they say. A big political dust-up in either nation could shake investor confidence and “easily create processes with non-linear sudden stops.” In other words, an economic recession or crisis.

The authors say the future growth of China and India amounts to a “$42 trillion question.” That’s the difference in GDP gains in 2033 if the two countries see their sizzling growth continue for another 20 years, compared with what the growth would be during those 20 years at roughly the world average. Chinese policy makers have been grappling with this kind of nightmare scenario for some time, which is sometimes called “the middle-income trap.” Many countries have made it to the level China has, with GDP per-capita of about $6,600, according to the International Monetary Fund. But just a handful of once-poor places – South Korea, Singapore, Taiwan among them – have then made it to the ranks of wealthy nations. The strategy to be released later Tuesday is aimed at helping China retain rapid growth—although not the double-digit growth of the past decades – well into the future. But it’s not just the legal system that might hobble China. It’s the power of state-owned firms, local governments, party officials and wealthy business leaders who think China is doing just fine and doesn’t need major change.

(BFW) Vale’s Stake Sale Removes One Key Uncertainty for Hydro: Arctic

+------------------------------------------------------------------------------+

BFW 11/12 07:53 *NORSK HYDRO RAISED TO ARCTIC BUY AT ARCTIC SECURITIES

+------------------------------------------------------------------------------+

Vale’s Stake Sale Removes One Key Uncertainty for Hydro: Arctic 2013-11-12 08:13:32.445 GMT

By Stephen Treloar Nov. 12 (Bloomberg) -- Potential Vale divestment has represented key uncertainty for long period of time, Arctic Securities analyst Thomas Lorck says in note. * Norsk Hydro ‘well on track’ to deliver on cost cutting program * Upgraded to ‘Arctic Buy’ on improved risk/reward at NK25/shr Link to Company News:{NHY NO <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: Stephen Treloar at +47-22-00-8211 or streloar1@bloomberg.net

>>> Novartis OTC business could interest Omega Pharma –report (translated)

Novartis OTC business could interest Omega Pharma

As Novartis, the Switzerland-based multinational pharmaceutical company, would consider selling its over-the-counter (OTC) business. The business could interest its Belgian peer Omega Pharma, Belgian daily De Tijd wrote.

The unsourced report said Omega Pharma CEO Marc Coucke will probably study the dossier with much interest.

Marc Coucke said he does not comment on individual dossiers.

However, the size of the Novartis OTC business could be too much to handle for Omega Pharma as only its four top brands (out of 15) reported a turnover of EUR 970m last year where Omega Pharma acquired a portfolio of GSK with 54 brands for EUR 470m (2.1 times turnover).

It has been debated if Novartis would split up the OTC business and sell parts of it to Omega Pharma, the report added. The report also said that another question is if Omega Pharma can handle such a buy financially, as it already has debts of close to EUR 750m.

Novartis CEO Joe Jimenez told Reuters yesterday that non-strategic, subscale units such as OTC and animal health could be sold if it proves impossible to convert them into global businesses.

Source De Tijd

(BFW) Balfour Beatty Offers GBP250m of Convertibles, 9.9% of Capital

+------------------------------------------------------------------------------+

BN 11/12 07:03 *BALFOUR BEATTY REPORTS OFFERING OF CONV. BONDS DUE 2018 BN 11/12 07:03 *BALFOUR BEATTY REPORTS OFFERING OF ABOUT £250M OF CONV. BONDS

+------------------------------------------------------------------------------+

Balfour Beatty Offers GBP250m of Convertibles, 9.9% of Capital 2013-11-12 07:13:48.308 GMT

By Gaurav Panchal Nov. 12 (Bloomberg) -- Says offering of ~GBP250m of senior, unsecured convertible Bonds due 2018 due to favorable market conditions, to lock in long-term financing at attractive terms, provide additional liquidity. * Shares underlying bonds represent ~9.99% of co.’s issued share capital immediately prior to offering * Maturity date Dec. 3, 2018, issued at par, coupon 1.875% to 2.375% pa, payable semi-annually in arrear * Convertible into ordinary shares of at initial conversion price, set initially at premium of between 30% and 35% above the VWAP of shares between launch and pricing * Statement:{NSN MW526N3HHEDC <GO>}

Link to Company News:{BBY LN <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: Gaurav Panchal at +44-20-7392-0511 or gpanchal2@bloomberg.net

WSJ : Yellen's Challenge: Corralling Fed's Many Voices (J.Hilsenrath)

One of Janet Yellen's biggest challenges if confirmed as the Federal Reserve's next leader will be managing the Fed's fractious internal debates and the mixed signals these discussions often give the public. Ms. Yellen seems unlikely to usher in a sharp departure from the open and consensus-oriented style of current Fed chief Ben Bernanke, who is widely admired among central-bank officials for his inclusive approach. But some former officials see her trying to get the Fed to speak with a more coherent voice. Ms. Yellen makes her first public appearance on Capitol Hill as President Barack Obama's nominee to lead the Fed on Thursday when she testifies before the Senate Banking Committee. She is likely to be questioned about her thinking on the Fed's unorthodox policies—including bond-buying programs and a commitment to keep interest rates near zero—among other issues. In eight years running the Fed, Mr. Bernanke made the institution more open to differing views internally and gave officials latitude to air their disagreements to the public. It was an intentional departure from the approach of his predecessor, Alan Greenspan, whose views dominated the central bank. Mr. Bernanke made the Fed more transparent and less insular, but the more openly divergent voices at times sowed confusion in markets about the Fed's thinking and its often complicated plans. Several former Fed officials said it would be hard for Ms. Yellen to revert the Fed's old approach, even if she wanted to. "I think Janet certainly is somebody who believes in an open discussion," but her challenge would be to preserve that while not confusing markets, said Frederic Mishkin, a Columbia University professor and former Fed governor. She might try to impose more discipline on how other officials describe Fed decisions in their public statements. As vice chairwoman in 2011, she helped write a Fed policy on external communications that gently urged officials to "endeavor to enhance the public's understanding of monetary policy" and to try to follow the lead set out in official Fed policy statements, news conferences and minutes of policy meetings. Krishna Guha, vice chairman of ISI Group, an investment research firm, and former head of communications at the New York Fed, predicted Ms. Yellen wouldn't order her colleagues to stick to a script or try to suppress dissent, but rather try to see if the committee can "find a slightly more sober, orderly way of communicating these policy debates in public." A statement she helped write on the Fed's long-run objectives, which established a 2% inflation target, was achieved through a process patterned along Mr. Bernanke's consensus style. It produced a unanimous vote after months of internal debate among inflation-wary policy "hawks" such as Philadelphia Fed President Charles Plosser and policy "doves" preoccupied with high unemployment such as Chicago Fed President Charles Evans. "It was a bunch of people who had very different views about the world, but Janet was able to sort of bring them together around an agreed position everyone on the committee could follow," said Mr. Guha, who was at the Fed during that time. "That's an interesting and hopeful sign in terms of committee dynamics." Mr. Bernanke worked hard behind the scenes to get as many votes at policy meetings as possible, even when officials had disagreements. He rarely faced more than one or two formal dissents on Fed decisions. It is possible Ms. Yellen could accept more formal dissents as she tries to advance her policies. But that would come with costs—more official dissent could lead investors to doubt those policies will last. The inflation-target vote suggests that on big decisions Ms. Yellen would likely want a large consensus of officials behind her. When she was vice chairwoman, Ms. Yellen ran a Fed communication subcommittee that pushed successfully for quarterly news conferences by the chairman. The conferences were meant to send a more coherent message to the public about big decisions and are widely seen as a success among Fed officials. St. Louis Fed President James Bullard has been pressing for news conferences after every policy meeting, a step other officials see as possible, though likely not right away, in Ms. Yellen's tenure. If confirmed by the Senate, as Democrats predict, she would succeed Mr. Bernanke, whose term ends Jan. 31.

>>> What to look at today

US Market activity was very slow yest with narrow range and low volume(530m sh.). Market managed to closed on the positive side...VIX @12.53 -2.87%...Brazil +0.72%...Overnight, economic data out of China was fairly disappointing, as new Yuan loans in Oct hit 10-month lows. CICC and Conference Board are tracking the recent estimates out of JPMorgan indicating China 2014 GDP target may be lowered to 7.0% from 7.5% in 2013...+0.8%...Nikkei+2.2% on weaker yen

Eur$ 1.3383 S&P Fut Flat, European Fut:

* Half of DAX Companies Plan to Raise Dividends, Handelsblatt Says

Keep an eye on :

- ANA SM : Acciona 9-Mo. Ebitda, Net Beat Estimates; Debt Falls to EU7.37b - ARL GY : Aareal Bank 3Q Operating Profit Rises; Co. Boosts 2013 Forecast - ATRS AV : Atrium 9M Ebitda Ex-Items EU121.1m vs. EU113.2m; Raises Div. - BBY LN : *BALFOUR BEATTY REPORTS OFFERING OF CONV. BONDS DUE 2018 - CSGN VX : Credit Suisse CEO Rejects Swiss Fin Min Claim Bank Cap Too Low - DPW GY : Deutsche Post 3Q Sales Miss Estimates - DWNI GY : Deutsche Wohnen 9M FFO Rises 65%; Confirms 2013 FFO Outlook - EDF FP :EDF Can Still Make Financial Investments, CEO Tells Echos - ELIOR : Elior Plans to Change Management Ahead of IPO, Echos Says - EVT GY : Evotec Posts 9m Operating Loss, Reiterates 2013 Guidance - GBF GY : Bilfinger 3Q Output Volume Up; Concession Negotiations Advanced - GFJ GY : Gagfah 3Q Recurring FFO/Share Rises as Interest Expenses Drop - HEN3 GY : Henkel 3Q Rev. Misses Ests., Raises 2013 Adj. Ebit Margin Goal,3Q Sales Affected by FX, Markets Remain Difficult - HG1 GY : Homag 3Q Order Intake Rises 14%; Confirms 2013 Forecasts - HPL GR : Hapag-Lloyd 3Q Profit Down 64% on `Disappointing' Freight Rates - IFX GY : Infineon Sees FY14 Sales Rising 7-11% as 4Q Net Beats Estimates - ISP IM : Intesa Will End Long-Term Shareholdings: Gros-Pietro in Corriere - LXS GY : Lanxess 3Q Ebitda Ex-Items Beats, Narrows 2013 Profit Forecast - MBQ GY : Mobotix FY13 Sales Rise 6%, Net Falls 9% - NRS NO : Norway Royal Salmon 3Q Operational Ebit NOK48.4m Vs NOK2.2m - NHY NO : Vale / NHY NO >> size doubled overnight on the back of strong demand, clean up trade for Vale, 407m shares (priced @ NOK25) - ORI SS : Oriflame 3Q Rev., Ebitda in Line, 4Q Sales Unchanged So Far Y/y - ORS GY : Osram 4Q Loss Misses Estimates; Raises Job Cuts, Savings Targets - RTL BB : RTL 3Q Rev. Misses; Confident Will Deliver FY Ebita of >EU1b - SEW GY : Semperit 9-Month Revenue Rises 11%; Reaffirms Growth Targets - SNG GY : Singulus 3Q Sales Rise 10%; Says Blu-Ray Demand Above Plans - UCG IM : UniCredit Kept at Reduce at Nomura After Quarterly Results - VOD LN : Vodafone 2Q Organic Service Revenue Growth Misses Estimates - WAC GY : Wacker Neuson 3Q Rev EU276.3m; Est. EU277m; Sticks to Forecast