>>> Cap Gemini / rumors of Potential interest of IBM after Announce of sale of

Service Unit.

* International Business Machines Corp Lenovo is in advanced discussions to buy Server unit (ex-services) - financial press
- Deal could be signed within weeks

--> Confirmed by Lenovo :
Lenovo Group Ltd In preliminary negotiations with a third party in connection with a potential acquisition
- As at the date of this announcement, no material terms concerning the Potential Acquisition have been agreed and the Company has not entered into any definitive agreement in relation to the Potential Acquisition

>>> Intel To sell media assets to Verizon; Terms of the transaction were not dis

Intel To sell media assets to Verizon; Terms of the transaction were not disclosed
- Announced an agreement for Verizon to purchase from Intel the assets of Intel Media, a business division dedicated to the development of Cloud TV products and services.
- The transaction will accelerate the availability of next-generation video services, both integrated with Verizon FiOS fiber-optic networks and delivered "over the top" to any device.
- Verizon will purchase intellectual property rights and other assets that enable Intel's OnCue Cloud TV platform. Verizon will also make employment offers to substantially all of the approximately 350-person Intel unit, which will continue to be based in Santa Clara and be led by its current management team.
- The transaction is subject to customary regulatory approvals and closing conditions and is expected to close early in the first quarter of 2014.

(KLE-CHEU) Bouygues - Downgrade to Hold

* The war is not over yet
The environment is likely to remain extremely challenging for French telecom operators, with 4G having been launched without the premium we expected and a broadband price war threatening to break out. Meanwhile, the (low) valuation aberration has disappeared after Bouygues’ great share price performance of 2013. Its risk/reward profile has become more balanced. We downgrade to Hold.

* 4G opportunity missed
4G is now a reality and the opportunity to recreate value via a premium over 3G did not materialise. Iliad’s announcement in early December (despite not having a network) that it would offer 4G without a premium triggered a chain reaction as a result of which all players are now offering 4G at no premium and relying exclusively on higher data utilisation to achieve, in the long run, ARPU increases. We think an historic opportunity has been missed.

* The arena for a new price war: broadband
Bouygues is declaring war on Iliad in broadband. The move makes sense to us, because fixed represents the totality of Iliad’s cash flow generation and this offensive strategy seems the only way to disrupt its strategy in mobile. Although the move is rational and in theory at a limited cost (given Bouygues’ small presence in fixed, every euro lost generates a 4-5x bigger loss at Iliad), this is not good news short-term (there will be an intense war before peace breaks out, we believe).

* Valuation no longer an aberration
Bouygues’ share price had an excellent performance in 2013, deserved in our view by several achievements: halting the EBITDA deterioration, obtaining the refarming of the 1800MHz band, successfully launching 4G and initiating negotiations on a RAN-sharing agreement with SFR. As a result, a key argument that we had when rating the stock as a top pick at the end of 2012 based on a 7x P/E has now disappeared at 14x P/E.

* Risk/reward profile not clear-cut: downgrade to Hold
The conclusion of the arguments above is to downgrade our rating from Buy to Hold. We believe Bouygues knows what it is doing and has the financial means to lead and win this battle against Iliad, but in the short term things are likely to get worse (results under pressure) before they get better (normalisation of French telecom environment). The risk/reward profile is not good enough. We prefer to observe the battle from the sidelines.

>>> Norsk Hydro & Aluminium Sector - see momemtum changing, better trend

--> Definetly better news flow & momentum, sector could a good play for next few weeks.

*Alcoa Inc JPMorgan Raised AA to Overweight from Neutral, price target: $15
- Upgrade on tightening aluminum market and rising regional aluminum premiums on earnings.

* GS is Upgrading NHY to Buy See note attached
Following three years of weak aluminium pricing, we believe 2014 will be the trough and that strong global demand growth (c.7% in 2015E) combined with limited supply growth beyond 2015 as well as a more aggressive approach to capacity management by producers will lead to a recovery in pricing in 2015/16. As a scale producer, Norsk Hydro has significant earnings leverage to rising aluminium pricing. Incorporating our Commodity team’s new aluminium price forecasts into our numbers, we revise our 2013/14/15E EPS to Nkr0.74/0.59/1.46 (from Nkr0.66/0.79/1.34) and upgrade the stock to Buy with our new 12m price target implying 28% upside.

*Aluminum Stockpiles in Japan Drop From 6-Month High in December {NSN MZOGZK6JTSE9 <go>}

(BofA-ML) Fund Manager Survey

>>> EUROPE
*The stars continue to align for Europe, but will it last?
2014 has begun much as 2013 left off. PMs are long stocks, long Europe and upbeat on growth. Net 41% are OW EU equity and net 34% plan to OW the region on 12m view. This isn’t surprising given that net 81% see a stronger EU economy in 2014; but it also suggests Europe may be vulnerable to any moderation in data.
*6% fear recession, 6% see EPS lower, 6% see EU as expensive
For the 2nd month running just 6% of PMs see risk of recession in Europe this year, the lowest since May-11. Improving sentiment is also driving the profit outlook; only 6% see EU earnings falling in 2014. At the same time just 6% think EU stocks are expensive; but 63% think they’re at fair value, the most since Sep-09. High cash levels and valuations likely support EU stocks – so long as earnings come through.
*Yet net 41% still see consensus earnings outlook as too high
For all PMs’ apparent exuberance, net 41% still view consensus EPS expectations for Europe as too high. PMs are evenly split on double digit EPS growth with net 3% seeing it plausible. Earnings outlook clearly remains a subject for debate; with 4Q13 earnings season looming the consensus OW in EU is vulnerable to disappointment.
*Pro-cyclical sector bias at risk if data or earnings fall short
Cyclical/Defensive positioning is 1 St. Dev. above average but just beginning to dip. Tech, Insurance, Autos and Industrials are the most loved sectors in Jan-14, but other high beta sectors slipped this month: weighting in Banks, Basics and Chems fell 16, 17 and 22 pts respectively. In January contrarians would buy EU energy and basics vs. selling EU Travel and Autos; EU stocks also screen as a contrarian sell.

>>> GLOBAL
*Your contrarian takeaways
1. Stay long stocks...until corporations reduce high cash levels, investors will run high cash levels & equity corrections will be extremely limited. 
2. EM capitulation close...rarely have such bullish growth expectations mixed with such bleak EM weightings. 
3. Buy some Staples as hedge...gap between investors long banks & short staples now widest in 10 years.
*How you learnt to stop worrying...
...and love the macro. Investor global growth & profit expectations at 3-year highs (despite sharp drop in China growth optimism). But investor frustration with corporate sector evident: record 58% want corporate cash spent on capex; record 67% say companies "under-investing".