(BFW) Gulf Keystone Doesn’t Have Sufficient Working Capital

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BN 03/20 15:43 *GULF KEYSTONE DEPENDENT ON PRODUCTION REV FROM SHAIKAN INTEREST BN 03/20 15:43 *GULF KEYSTONE DEPENDENT ON CASH RESOURCES OF $82M AS OF JAN 31 BN 03/20 15:43 *GULF KEYSTONE PETROL: JEREMY ASHER NAMED DEPUTY CHAIRMAN BN 03/20 15:42 *GULF KEYSTONE DOESN'T HAVE SUFFICIENT CAPITAL FOR NEXT 12 MOS BN 03/20 15:42 *GULF KEYSTONE PETROL: GUTHRIE TO CONTINUE AS NON-EXEC DIRECTOR BN 03/20 15:42 *GULF KEYSTONE DOESN'T HAVE SUFFICIENT CAPITAL FOR PRESENT NEEDS BN 03/20 15:42 *GULF KEYSTONE PETROL: GUTHRIE STEPPED DOWN AS DEPUTY CHAIRMAN BN 03/20 15:42 *GULF KEYSTONE DOESN'T HAVE SUFFICIENT WORKING CAPITAL

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Gulf Keystone Doesn’t Have Sufficient Working Capital 2014-03-20 15:44:08.969 GMT

By Heather Burke March 20 (Bloomberg) --

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WSJ : Yellen Debut Rattles Markets

Yellen Debut Rattles Markets
Wary Investors Seize on New Fed Chief's Mixed Message on Pace of Rate Increases

Investors bristled after Janet Yellen emerged from her first meeting as Federal Reserve chairwoman with some unsettling signals about the central bank's outlook for short-term interest rates.

The Fed intends to keep short-term rates near zero into next year, but investors sniffed out signs that rate increases might come a bit sooner and be a touch more aggressive than expected. Even though the Fed's official policy statement sought to give assurances of continued low rates far into the future and Ms. Yellen played down rate-increase expectations, stock prices fell and longer-term rates on Treasury bonds moved up.

In a press conference after the meeting, Ms. Yellen suggested that interest-rate increases might come about six months after the bond-buying program ends—a conclusion that could come this fall. She offered that projection with many caveats, but some investors took it as a sign that the Fed could start raising interest rates sooner than expected

"This could have been a rookie gaffe on Yellen's part," Paul Edelstein, director of financial economists at IHS Global Insight, said in a note to clients. "This was, after all, her first press conference."

In futures markets, prices indicated investors' expected rate for the Fed's benchmark federal funds rate for June 2015 moved up from 0.28% before the Fed's meeting to 0.36% after the meeting.

The market response was emblematic of the market's hypersensitivity to the Fed's interest-rate decisions after seven years of aggressive central-bank action to stabilize and strengthen the economy.

It is also emblematic of the challenge Ms. Yellen faces as she takes charge at the Fed. As the economy gets on a stronger footing, the Fed is gradually stepping back from its easy-money stance, but if it moves back too quickly, it could undercut the recovery it has been working to support.

"We will try as hard as we can not to be a source of instability here," Ms. Yellen said in response to a question about the Fed's communications in her first postmeeting press conference since taking the Fed's helm last month.

The Dow Jones Industrial Average finished down 114.02 points, or 0.7%, at 16222.17. Yields on 10-year Treasury notes rose 0.096 percentage point to 2.770%.

"It just tells you how nervous bond investors are on rising rates," said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading in New York at Deutsche Bank AG's private wealth management unit.

The Fed took several actions at the meeting. First, it pulled back to $55 billion from $65 billion its monthly bond-buying program, which is aimed at holding down long-term interest rates in hopes of boosting spending, hiring and growth. It was the third reduction in the bond purchases since December.

The central bank also rewrote its guidance about the likely path of short-term interest rates, putting less weight on the unemployment rate as a signpost for when rate increases will start. It said instead that the Fed would look at a broad range of economic indicators in deciding when to start raising short-term rates from near zero, where they have been since December 2008.

The Fed has been linking its interest-rate decisions since December 2012 to the path of the unemployment rate, saying it wouldn't even consider interest-rate increases as long as the jobless rate was above 6.5%. With the unemployment rate approaching that threshold—it was 6.7% in February—the Fed set out new guidelines for the interest-rate outlook.

The Fed said it would be watching a "wide range of information," including measures of job market conditions, inflation and financial market developments. Ms. Yellen mentioned 10 different labor-market indicators she is watching, including the share of workers who have been unemployed for six months or more, the share of adults who are holding or seeking jobs, the portion of workers who hold part-time jobs but say they would rather have full-time occupations and the rate at which people are quitting jobs.

The Fed took several steps to assure investors that interest rates won't rise soon and that when rates do start rising the increases will be gradual and limited. For example, the Fed's official policy statement included a new line noting that officials expect to keep rates lower than normal even after inflation and employment return to their longer-run trends.

"Economic conditions may, for some time, warrant keeping the target federal funds rate below levels the [Fed] views as normal in the longer run," the Fed said in its policy statement.

In normal times, the fed funds rate is around 4%. Because of various factors weighing on growth, the Fed's official policy statement indicated the fed funds rate isn't likely to return to that 4% level in the foreseeable future.

However, investors seized on some signs that the Fed was expecting slightly more aggressive interest-rate increases than it was a few months ago. For instance, as a supplement to its official policy statement, the Fed released new economic projections by the 16 officials who attended the policy meeting. The median projection for short-term rates at the end of 2015—meaning half of projections were above and half were below—was 1%. That is a small increase from a 0.75% median estimate in December. The median for 2016 moved from 1.75% to 2.25%.

Ms. Yellen played down the shifting projections. "These dots are going to move up and down," she said of the interest-rate projections, adding that the policy statement was a more important guide to the Fed's plans

That policy statement said the Fed's stance on interest rates hadn't changed. Still, some analysts took a different message.

"It is the clearest sign yet," Harm Bandholz, chief U.S. economist with UniCredit Research, said in a note to clients, "that the tendency for later and later rate hikes that dominated over the past couple of years might have come to an end."

Investors got a somewhat mixed message on the economy. Ms. Yellen acknowledged that officials might have been too optimistic about the economic outlook early in the year. But she and other officials largely stuck to their projections for how growth and inflation will unfold in the coming years.

Fed officials see inflation slowly returning from nearly 1% recently to 2% in the years ahead and the economy reaching a growth rate around 3% or a little less. They reduced their estimates for the unemployment rate, which they see falling to between 6.1% and 6.3% by year-end, from 6.7% in February. They attributed recent sluggishness in growth in part to "adverse weather conditions."

Officials, however, remain deeply worried about longer-running headwinds to the economy. Ms. Yellen said these headwinds include many households' limited access to credit because of tarnished credit histories and homes that are worth less than their mortgages. She said some Fed officials also see the recovery weighed down by weakness in the global economy, restrictive U.S. tax and spending policies and persistent business caution.

"We've lived through a devastating financial crisis that has taken an exceptional toll on the economy in many ways," she said.

Ms. Yellen faced one dissent in her first meeting, that of Minneapolis Fed President Narayana Kocherlakota. He has been a strong proponent of offering assurances that the Fed will keep rates low until the jobless rate gets much lower. He believed the shift away from such guideposts hurt the Fed's credibility and "fosters policy uncertainty," according to the Fed's policy statement.

>>> Fed to release initial CCAR stress test results for the 30 largest banks tod


Fed to release initial CCAR stress test results for the 30 largest banks today at 16:00ET
- Results from supervisory stress tests conducted as part of the Dodd-Frank Reform and Consumer Protection Act will be released today after the close. The exercises help assess whether institutions have sufficient capital to absorb losses and support operations during adverse economic and financial market conditions over a period of nine quarters.

- The stress tests will test banks' ability to withstand a hypothetical recession beginning this year while remaining well-capitalized with Tier 1 common equity ratios of at least 5.0%. The severely adverse scenario this year includes a 4% jump in the unemployment rate during 2013, 4.75% negative GDP growth (versus -5.0% GDP in last year's test), a 50% decline in equity prices (unchanged from last year) and a 25% decline in real estate prices (versus a 20% decline in last year's test).

- Last year, 17 of 18 of the biggest financial institutions in the US passed its stress test scenario. Ally Financial was the only institution that failed to meet thresholds.

- Many participants will disclose details from their stress test results after the close today. Banks will disclose their 2014 capital allocation plans after the release of the final CCAR results on March 26th.

- The comprehensive results from the Comprehensive Capital Analysis and Review, or CCAR, will be released on Wednesday, March 26, at 16:00ET. Under CCAR, the Fed evaluates each company's plans to make capital distributions, such as dividend payments, stock repurchases, or planned acquisitions.

WSJ : Airbnb In Advanced Talks to Raise Funding at a $10 Billion Valuation



Airbnb In Advanced Talks to Raise Funding at a $10 Billion Valuation

Private-Equity Firm TPG Likely to Lead Funding Round for the Online Home-Rental Marketplace

Airbnb Inc. is in advanced talks to raise funds that would value the online home-rental marketplace at more than $10 billion and place it among the world's most valuable startups, according to several people familiar with the process.

Private-equity firm TPG is likely to lead the round, which could total between $400 million and $500 million, said two of the people.

At $10 billion, Airbnb would be valued more highly than some large hotel operators with which it competes. Wyndham Worldwide Corp. WYN -0.67% , which manages 7,500 hotels under the Wyndham, Ramada and other brands, has a market value of $9.4 billion. Hyatt Hotels Corp. H -0.94% is valued at $8.4 billion.

Founded in 2008, Airbnb allows individuals to rent out couches, rooms, apartments and homes through an online marketplace of more than 600,000 current listings. Hosts set a nightly rate, and Airbnb collects guest payments, keeping a portion of the fees for itself. The company hasn't disclosed revenue or profitability.

The service has become a cheap alternative to hotels for millions of tourists, a source of income for homeowners and a target for regulators wary about safety, oversight and tax collections.

Last October, New York Attorney General Eric Schneiderman subpoenaed Airbnb for information on its 15,000 hosts in the state, to determine if any are violating a 2010 state law that prohibits renters from subletting their homes for less than 30 days if they're not present. The company is contesting the order in court. Hotel operators argue that the rentals unfairly skirt lodging taxes.

Airbnb is benefiting from soaring investor interest in mobile and Internet-based business models, which is propelling a wave of initial public offerings and eye-popping valuations for private companies. Facebook Inc. FB -1.74% recently agreed to acquire closely held text-messaging service WhatsApp for $19 billion.

In the past 12 months, at least 21 companies have raised new funds that valued them at $1 billion or more. At the top of that list, online-storage provider Dropbox Inc. and Chinese mobile-phone maker Xiaomi notched $10 billion valuations, while data-mining specialist Palantir Technologies Inc. was valued at $9 billion. Uber Inc., an on-demand car service, is valued at $3.8 billion, following an investment last year led by Google Ventures, with TPG participating.

Airbnb and Uber are part of the so-called sharing economy, in which people offer resources or services, such as cars, spare bedrooms, or extra time, to others for a fee. The companies need investments to expand into new regions, staff international offices and ward off competitors. One of Airbnb's largest competitors is vacation-rental service HomeAway Inc., AWAY -0.24% a public company valued at $3.9 billion.

Airbnb's valuation has quadrupled since it raised funds less than two years ago, a period in which the company expanded its rental service to more than 160 countries.

Airbnb last raised funding at a valuation of $2.5 billion in 2012, from venture-capital investors including Peter Thiel's Founders Fund, Andreessen Horowitz and Sequoia Capital. Before the current talks, the company had raised more than $300 million. It received a $600,000 seed investment from Sequoia in 2009, and the next year raised $7.2 million in a round led by Greylock Partners.

Airbnb co-founder and Chief Executive Brian Chesky wants to expand the service beyond room rentals by adding more hospitality services. Earlier this year, for instance, Airbnb began testing a cleaning service for hosts in certain neighborhoods in San Francisco and New York. Last fall, it hired Chip Conley, the founder of Joie de Vivre, a boutique hotel chain, to lead an effort instructing the company's 350,000 hosts on the finer points of hospitality.

"We are actively looking to build specific services," Mr. Chesky said in an interview with the Wall Street Journal in January. "We need to offer more."

>>> US Gapping down

Gapping down

In reaction to disappointing earnings/guidance: XONE -10.2%, TLYS -8.2%, GES -6.1%, CHL -2.1%, FNV -1.7%, (light volume).

Metals/mining stocks trading lower: GG -1.5%, EGO -1.4%, SLV -1.3%, GDX -0.8%, GLD -0.5%, .

Oil/gas related names showing early weakness: STO -2.9%, TOT -1.7%, SDRL -1.6%, RDS.A -1.6%, RIG -1.5%, BP -1.4% (has begin bidding for Gulf of Mexico leases, according to reports) .

European pharma/drug names trading lower: GSK -1.9% SNY -1.1% NVS -0.9%

Coal names under pressure with analyst comments weighing on select names: WLT -6.5% (cautious coal comments at BofA/Merrill related to falling marginal costs depressing price; WLT estimates sharply lowered; also prices $200 mln of 9.5% Senior Secured Notes due 2019 and $350 mln of Senior Secured Second Lien PIK Toggle Notes due 2020), ANR -2.2%, ACI -1.6%, BTU-1.3%

3-D printing names lower following XONE earnings: SSYS -1.5%, DDD -1.2%

Other news: AGEN -11.6% (Agenus and GSK's MAGE-A3 cancer immunotherapeutic Phase 3 study in non-small cell lung cancer misses first co-primary endpoints ), BEAT -9.8% (Announces the Acquisition of the Cardiac Patient Services Business of Biomedical Systems, Corp. for aggregate consideration of $8.65 million at closing), FCEL -5.3% (still checking), CIDM -5.1% (announces proposed public offering of common stock), CSBK -4.5% (announces stock offering results; received orders for ~$170.6 mln of common stock), NBY -2.4% (announces proposed public offering of common stock and warrants), KNDI -2.3% (continuing yesterday's modest pullback), PHG -1.9% (still checking), SGMO -1.5% (announces public offering of $100 mln of common stock), RCL -1.2% (still checking), HPP -0.6% (prices 3,511,845 shares of its common stock by selling share holders), FSLR -0.6% (following yesterday's Analyst Day), NQ -0.5% (attributed to Whitney Tilson cautious mention), EBAY -0.5% (announces it continues to believe PayPal and Ebay are better together), CYH -0.4% (nnounces definitive agreement to lease Ocala, Florida hospital), TSLA -0.4% (NY lawmakers plan to fight against direct sales ban)

Analyst comments: UA -1.9% (downgraded to Neutral from Buy at Sterne Agee), BYI -1.7% (downgraded to Sell from Neutral at Goldman), XEL -1.4% (downgraded to Sell from Neutral at Goldman), ORCL -0.9% (downgraded to Hold from Buy at Argus), AEE -0.7% (downgraded to Sell from Neutral at Goldman), NEE -0.5% (removed from Conviction Buy list at Goldman)

>>> US Gapping up

Gapping up

In reaction to strong earnings/guidance: CRMB +12.5%, MLHR +5.5%, BGMD +4.1% (light volume, also announces issuance of patent covering Galectin-3 testing for Cardiac Resynchronization Therapy), RGDX +3.4% (light volume), LEN +2.1%, TSL +1.6% (announces receipt of favorable arbitration award and adjusts fourth quarter and full year 2013 earnings results), CAG +1.4%, JBL+1%, SVA +1%, CTAS +0.7%.

Other news: SNTA +21.1% (announces positive interim results from the ENCHANT-1 trial of ganetespib in metastatic breast cancer at the 9th European Breast Cancer Conference; all objective responses were confirmed by independent radiological review), DCTH +11.4% (continued strength), NAVB +8% (provides update on European Marketing Authorization Application for Lymphoseek: 'Committee will continue with its review of the MAA'), MNGA +8% (selected for four demolition projects), GERN +7.5% (reports Myelofibrosis IST placed on partial clinical hold), TNGO +5.4% (still checking), AEG +2.5% (strength in overseas trading that was attributed to US rate outlook), MT +1.4% (still checking), VOYA +0.8% (prices 33.8 mln shares of common stock; upgraded to Buy from Hold at Deutsche Bank), FPRX +0.7% (discloses it entered into a Research Collaboration and License Agreement with Bristol-Myers Squibb), SUNE +0.6% (announces private placement of shares to Samsung in connection with SunEdison Semiconductor IPO), SGEN +0.6% (following positive MadMoney mention).

Analyst comments: REPH +7.2% (initiated with a Buy at Brean), ZIOP +3.1% ( initiated with a Buy at Mizuho), ZLTQ +2% ( initiated with a Buy at Stifel), ULTA +1.7% ( upgraded to Buy from Neutral at Goldman), YUM +0.3% (upgraded to Outperform from Mkt Perform at First Global)

(Nomura) Accor - Easier to dispose than to acquire

* Accor (ACCP.PA): Easier to dispose than to acquire

* Strategic flip from disposals/capital returns to increased asset intensity
Accor‟s new strategy recognises the previous plan to exit owned/leased assets was
unworkable and risked giving away value. Its new internal propco enables it to retain the
benefit of turning around underperforming assets, but does not address the legacy of previous
sale and leasebacks. This can only be done through asset repurchases, meaning investors
are essentially now reliant on Accor‟s acquisition rather than divestment skills.

* Internal split brings discipline and showcases growth in HotelServices
Management hopes that the Services business will be faster growing and deserving of a
multiple in line with its asset-light peers. The pipeline of 116k asset-light rooms suggests 25%
growth in system size and Accor is well placed to lead the structural growth in European
franchising. Our main reservation is that the market has historically undervalued hybrid
assets, meaning that a demerger may be necessary to unlock the sum of the parts – this is
not practical until the contribution from leased assets has been reduced from 46% to less than
25%, which will take several years to implement.

* Near-term RevPAR outlook dominated by France; VAT impact will weigh
Accor‟s share price has been strong (+8% YTD relative to E300) as investors look for cyclical
European exposure. However, Accor is not a diversified European bellwether as 34% of
revenues come from France where the hotel cycle is yet to improve. Notably, the risk from the
recent increase in VAT on French hotels (from 7% to 10% on 1 January) creates a headwind
to pricing power that is likely to be evident in Accor‟s 1Q results on 17 April.

* 2014E P/E of 24x, 18.1x blue sky EPS and 3x BV are full, in our view
From a valuation perspective, we believe the market is already pricing in the earnings upside
from the opco/propco split. Our SOTP based on blue sky 2016E EBITDA gives our new target
price of EUR 35.40. Valuing the property business as a REIT based on an NAV multiple of
1.4x and dividend yield of 5.1% gives a fair value range of EUR 39.3-42.3. This best-case
scenario is virtually priced into the shares (7% upside to midpoint) despite being an uncertain
outcome. Please read on for more details.

>>> US Early premarket gappers

Early premarket gappers

Gapping up: CRMB +12.5%, DCTH +11.4%, NAVB +8%, LEN +6%, MLHR +5.5%, MCP +4.1%, PLUG +3.1%, AEG +2.5%, JBL +1.9%, MT+1.4%, T +1.3%, SVA +1%, VOYA +0.8%, FPRX +0.7%, CTAS +0.7%

Gapping down: AGEN -30.2%, XONE -9.1%, TLYS -8.2%, WLT -6.5%, GES -6.1%, FCEL -5.3%, CIDM -5.1%, CSBK -4.5%, NBY -2.4%, CHL-2.1%, PHG -1.9%, BCS -1.9%, SDRL -1.6%, SGMO -1.5%, SSYS -1.5%, GG -1.5%, RIG -1.5%, BP -1.4%, BP -1.3%, SLV -1.3%, DDD -1.2%,RCL -1.2%, SNY -1.1%, HPP -0.6%, FSLR -0.6%, NQ -0.5%, EBAY -0.5%