TheChek News Flow

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BN 10/29 15:36 Clariant Said to Be in Advanced Leather Merger Talks With Stahl

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Clariant Said to Be in Advanced Leather Merger Talks With Stahl 2013-10-29 15:38:35.865 GMT

By Heather Burke Oct. 29 (Bloomberg) -- Clariant is in advanced talks to combine its leather-treatment unit with a competing business of French PE firm Wendel, Bloomberg News’s Patrick Winters, Andrew Noel and Aaron Kirchfeld reported, citing 2 people familiar with the matter. * A deal with Wendel, which owns leather chemical company Stahl, may be announced as soon as tomorrow, said the people, who declined to be identified because the talks are private * Both sides are negotiating final details and a deal may still not happen, they said * Representatives for Clariant and Wendel declined to comment on a potential deal

Story Link:NSN MVFSOM6S972R<GO>

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

--With assistance from Francois de Beaupuy in Paris. Editor: James Ludden

To contact the reporter on this story: Heather Burke in London at +44-20-7673-2044 or hburke2@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

CAP GEMINI: BLACKROCK CUT STAKE TO 9.96%, AMF SAYS from 13.52%...

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Telefonica CEO Pledges Investments in Telecom Italia: Ansa 2013-10-29 15:19:55.677 GMT

By Daniele Lepido Oct. 29 (Bloomberg) -- Telefonica confirmed its commitment to invest in fiber fixed-line grid and 4G mobile networks, CEO Cesar Alierta told reporters in Rome after meeting Premier Letta, Ansa reports. * Telefonica promised to maintain Telecom Italia employment levels: Ansa * Alierta pledged to keep the phone co. “Italian”: Ansa * NOTE: Letta said to seek Telefonica pledge on keeping Italian Jobs NSN MVFMW16S973F <GO>

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

--Editor: Dan Liefgreen

To contact the reporter on this story: Daniele Lepido in Milan at +39-02-8064-4266 or dlepido1@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at +49-30-70010-6215 or kwong11@bloomberg.net

China announces economic policy meeting

China’s ruling Communist party has set a date for a policy meeting that reformists hope could yield new moves to liberalise the economy, although chances of more political openness seem less likely. The third plenum of the 18th CPC Central Committee – in other words, the third time the Communist party’s 200 highest-ranking officials meet under the current leadership – will run from November 9 to 12, the Xinhua news agency said on Tuesday.

The third plenum is seen as a potentially crucial meeting for Xi Jinping, who formally became head of state in March, to lay out his policy objectives for what is expected to be his coming decade in charge of China. In a meeting with foreign business leaders earlier this month, Mr Xi Jinping, who also heads the Communist party, said: “We will study the issue of comprehensive reform and make an overall plan at the 18th third plenary session.” But observers have gradually lowered expectations for what those reforms might be, as censors have tightened control over the internet and silenced academics and critical activists. There are also doubts about just how far the government will be willing to push on economic reforms. Many now expect cautious further steps towards financial liberalisation and little progress on the thorny issues of state-owned enterprises’ role in the economy or meaningful land reform, where powerful interest groups hold sway. The influential Development Research Center, a think-tank under the State Council, recently issued a long list of reformist suggestions, including breaking up state monopolies and giving local governments greater control over their own finances. But analysts caution that the DRC report is representative of just one voice in the debate, and quite a liberal one at that. “If the new leadership were to execute this plan, it would certainly be a major positive to China’s long-term prosperity as well as short-term business confidence,” said Wei Yao, an economist with Société Générale. “However, we caution that the road map to be delivered at the plenum may be notably less aggressive.” Announcements at the plenum are likely to be phrased in the turgid, general phrases commonly used in official documents in China, making it hard to parse their significance. With so much up for discussion, investors have been looking for yardsticks to judge just how reformist or conservative China’s new leaders are. Jian Chang, an economist with Barclays, said moves to address the country’s fiscal imbalances, which have saddled local governments with big spending responsibilities but little taxation power, would be key. “We are cautiously optimistic,” she said. “Meaningful fiscal reforms will be our gauge of the new leaders’ ability to build a consensus for the urgent but complicated reforms China needs.”

Telefonica to agree sale of Telefonica Czech Republic to PPF before spectrum auction on 11 November (translated)

Telefonica, the Spanish telco, has essentially agreed the sale of a 69% stake in Telefonica Czech Republic to Czech investment group PPF, Hospodarske Noviny reported, citing undisclosed sources.

The Czech-language item said an agreement should be reached before the launch of the auction of mobile frequencies in the Czech Republic on 11 November. The price for Telefonica Czech Republic should not exceed CZK 75bn (EUR 2.9bn).

Source Hospodarske Noviny

Group of Senate Democrats today will introduce a bill that would give the President the ability to raise the debt ceiling without Congressional approval - The tactic is known as the 'McConnell Rule,' after the minority leader who first proposed it and then backed away from the idea during the original debt ceiling battle in 2011.

- Link: {http://thehill.com/blogs/blog-briefing-room/news/331103-senate-dems-to-call-for-mcconnell-rule-on-debt-ceiling}

Gapping up

In reaction to strong earnings/guidance: ONP +21.1% (light volume), NTRI +12.5%, DATA +9.2% (also files registration statement for proposed secondary offering), NOK +7.3%, XYL +7.2%, CIE +5.5%, BP +4.9%, MAS +4.7%, AMKR +3.5%, ICON +3.1%, ACT +2.8%, PRE +2.5%, (light volume), HIG +2.4%, ALLT +2.3%, LINE +1.8%, VLO +1.7%, MIC +1%, ACI +0.7%, JCI +0.6%, GGP +0.5%, (light volume), PBI +0.5%, (light volume), AAPL +0.4%, OXY +0.3%.

M&A news: LCC +5% (AMR, US Airways & the US Government have agreed to go to mediator to find a resolution in the antitrust case, according to reports ), BTH +3.2% (saw late spike - attributed to reports of CVSL offer).

Select oil/gas related names showing strength boosted by BP earnings: RDS.A +1%, STO +0.7%, TOT +0.6%, .

European drug names are higher: GSK +0.8%, NVS +0.8%

Other news: IBN +5% and HDB +1.3% (India rate news), KORS +4.3% (to join the S&P500), ALU +3.1% (ahead of earnings later this week, NOK also reported), GLUU +3.1% (continued strength), ITUB +2.1% (still checking), STM +1.6% (still checking), TSLA +1.6% (not seeing anything specific), TLM +1% ( Icahn discloses 6.96% stake, up from 5.97% stake reported on Oct 7), DAL +1% (on LCC / AAMRQ news) LL +0.9% (following positive mention on MadMoney), GPS +0.8% (Lone Pine Capital discloses 5.4% passive stake in 13G filing), BMY +0.4% (Barron's profiles positive view on Bristol-Myers), TSCO +0.3% (following positive mention on MadMoney).

Analyst comments: ONTX +1.9% ( upgraded to Buy from Neutral at Citigroup), YHOO +0.8% (upgraded to Outperform from Market Perform at Bernstein), GME +0.5% (initiated with a Buy at Stifel)

Gapping down

In reaction to disappointing earnings/guidance: VOLC -16.7% (also several downgrades), PMCS -10.4%, PSMI -6.9%, ECOM -6.5%, (also ChannelAdvisor Announces Proposed Follow-On Offering), UBS -5.5%, CMI -5.1%, ETR -4.9%, (light volume), ARR -4.8%, STX -4.1%, ICAD -3.8%, SANM -3.8%, (light volume), AGNC -3.6%, DDD -3.1%, IVR -2.4%, (light volume), GT -2.1%, LYB -2%, X -1.8%, DB -1.7%, PCL -1.3% (also announces public offering of 14.1 mln shares of common stock), AET -1.3%, HLF -1%.

Select metals/mining stocks trading lower: NEM -2.5%, GOLD -2.4%, RIO -0.9%, GLD -0.7%, GG -0.7% (downgraded to Neutral from Overweight at HSBC), GFI -0.6%, SLW -0.5%, SLV -0.4%.

Other news: CLSN -14.5% ( announces 1 for 4.5 reverse stock split), EROC -4.8% (decreases quarterly distribution ~32% to $0.15 from $0.22 per unit; sees Q3 adjusted EBITDA of $62.8 mln, downgraded to Neutral from Buy at BofA/Merrill ), SHO -3.4% (announces public offering of 20,000,000 shares of common stock), CLNY -2.9% (announces public offering of 10 mln shares of common stock ), ERJ -2.7% (still checking), RBS -2.6% (still checking), FNB -2.2% (announces capital action plan and commences $50 million common stock offering), SSYS -2% (on DDD results), SLG -1.2% (announces proposed offering of 2.6 mln shares of common stock), RCL -0.9% (still checking), BKU -0.7% ( prices 9 mln shares of its common stock by selling shareholders at $30.75 per share), NYX -0.5% (KORS replcing in S&P 500), .

Analyst comments: CYOU -0.2% (downgraded to Hold from Buy at Brean)

PACCAR beats by $0.02, beats on revs

Reports Q3 (Sep) earnings of $0.87 per share, $0.02 better than the Capital IQ Consensus Estimate of $0.85; revenues rose 12.6% year/year to $4.3 bln vs the $4.14 bln consensus.

Global Truck Markets DAF's premium-quality vehicles have achieved industry leadership in Europe. "DAF is the European leader in on-highway tractors; and has achieved an overall market share of 15.9 percent in the above 16-tonne segment this year," said Harrie Schippers, DAF president.

South American Growth PACCAR began production of DAF trucks at its new assembly plant in Ponta Grossa, Brasil, in October 2013.

PACCAR Parts Achieves Record Results PACCAR's aftermarket parts business achieved record quarterly revenue in the third quarter of 2013.

Fresh Del Monte misses by $0.31, beats on revs, co cites an industry-wide oversupply of bananas

Reports Q3 (Sep) earnings of $0.09 per share, excluding non-recurring items, $0.31 worse than the Capital IQ Consensus Estimate of $0.40; revenues rose 9.2% year/year to $861.1 mln vs the $800.6 mln consensus (two estimates). Co says it was impacted by an industry-wide oversupply of bananas, increases in logistic and fruit costs, as well as unfavorable year-over-year exchange rates.