TRY - Turkey has frozen the assets of the main opposition Republican peoples party candidate for mayor of Istanbul..
Think we see USDTRY go further bid on this.. ahead of the weekend this will spark anti Erdogan protests i am sure
WSJ carrying a story saying "Russia ready to float Ruble next year regardless of rate"
Stress tests (they say) show banks can handle devaluation of up to 30%
{http://online.wsj.com/news/articles/SB10001424052702304419104579326441407494108?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304419104579326441407494108.html}
ABI BB: Reportedly enters talks to acquire Oriental Brewery for prices in excess of $4.5B - financial press
Fitch: France labor tax cuts may be credit suportive
- President Hollande's announcement of new labour tax cuts and his public commitment to press ahead with structural economic reforms is potentially supportive of competitiveness and medium-term growth in France, although assessing their likely impact will require further clarity on details and implementation, Fitch Ratings says. Furthermore, it is not yet clear how the proposed tax cuts would fit within current fiscal plans.
- The 'responsibility pact' to cut labour costs for companies as they hire more workers was the most significant point of the 14 January speech. The idea is to phase out employer family welfare payroll contributions by 2017, saving French companies EUR30bn a year (or 1.5% of 2012 GDP), according to government estimates. Further details will be given in the spring of 2014, with a scheduled vote of confidence in parliament on the government in the context of this new 'responsibility pact'. Fitch believes the risk of the government being outvoted is small.
- The move to cut labour costs follows a tax rebate for companies, announced in 2012, is worth EUR20bn to firms from 2015 onward. Cutting non-wage labour costs would help improve competitiveness and, to the extent it adds to medium-term growth prospects, support the AA+/Stable sovereign rating, which we affirmed in December. French firms have some of the highest non-wage labour costs in the EU and relatively low profit margins.
- However, while this week's announcement is another step towards addressing structural economic challenges, it is unlikely on its own to fully offset the risks associated with the relatively slow pace of structural reform. The OECD said in a government-commissioned report in November that recent reforms were welcome, but that "France has recorded no significant improvement" in its external competitiveness since the crisis.
- The 'responsibility pact' to cut labour costs for companies as they hire more workers was the most significant point of the 14 January speech. The idea is to phase out employer family welfare payroll contributions by 2017, saving French companies EUR30bn a year (or 1.5% of 2012 GDP), according to government estimates. Further details will be given in the spring of 2014, with a scheduled vote of confidence in parliament on the government in the context of this new 'responsibility pact'. Fitch believes the risk of the government being outvoted is small.
- The move to cut labour costs follows a tax rebate for companies, announced in 2012, is worth EUR20bn to firms from 2015 onward. Cutting non-wage labour costs would help improve competitiveness and, to the extent it adds to medium-term growth prospects, support the AA+/Stable sovereign rating, which we affirmed in December. French firms have some of the highest non-wage labour costs in the EU and relatively low profit margins.
- However, while this week's announcement is another step towards addressing structural economic challenges, it is unlikely on its own to fully offset the risks associated with the relatively slow pace of structural reform. The OECD said in a government-commissioned report in November that recent reforms were welcome, but that "France has recorded no significant improvement" in its external competitiveness since the crisis.
Schlumberger Ltd Exec: targeting 2014 EPS growth in double digits, and see solid growth in North America though pricing will be under pressure - conf call comments
- EPS and margins could be lower in Q1 due to normal seasonality.
US surgeon general Lushniak to release report today that expands the list of diseases that cigarette smoking has been shown to cause (UPDATE)
- Report cites scientific data that conclusively demonstrates smoking raises the risk of additional diseases not previously listed as smoking risks: type 2 diabetes, erectile dysfunction, rheumatoid arthritis, macular degeneration, and two more kinds of cancer (liver and colorectal cancers).
-
Recent downdraft in European equities price action said to related to potential sovereign downgrade chatter in region
- Some dealers trying to push chatter of a potential German sovereign downgrade.
- Other dealer note the option expiration for today. the Dax option expired at 09:00 ET (14:00 GMT)
- Other dealer note the option expiration for today. the Dax option expired at 09:00 ET (14:00 GMT)
Switzerland and EU start negotiations on taxation of savings income
Bern, 17.01.2014 - Switzerland and the EU have officially started negotiations on revising the taxation of savings agreement. Today in Bern, State Secretary Jacques de Watteville met his counterpart Heinz Zourek, Director General of the European Commission's Taxation and Customs Union Directorate-General. The aim of the meeting was to take stock of the situation and establish the technical details for the negotiations.
The meeting followed on from the Federal Council's adoption on 18 December 2013 of the negotiation mandate to revise the taxation of savings agreement with the European Union (EU). On 14 May 2013, the European Commission, for its part, was instructed by the Economic and Financial Affairs Council (ECOFIN) to negotiate an amendment of this agreement with Switzerland.
In this way, the EU wants to make sure that the agreement is amended in line with the planned revision of its own Savings Taxation Directive. The aim of the revision is to close the gaps and prevent people from evading the taxation of their interest income by interposing bogus companies or resorting to certain financial instruments. International developments in this area should also be taken into account in the negotiations. The negotiating parties have agreed to hold regular meetings in the first half of 2014.
The State Secretary and his EU counterpart also discussed business taxation. A solution will be sought which is in line with international standards, strengthens Switzerland as a business location and is financially viable for the Confederation and the cantons.Gapping up
In reaction to strong earnings/guidance: SWKS +13.6%, STI +2.9%, FHN +1.3%, SLB +1%, MS +0.9%.
M&A news: MIL +6.1% (to acquire a 100% interest in the FESIL AS Group for ~ 500 mln Norwegian Krone (~ $82 mln); 'not expected to have a material effect on our financial ratios or cause any dilution to our shareholders' equity'), S +3% and TMUS +2.5% (ongoing M&A speculation- Sprint has financing proposals from banks for T-Mobile bid, according to reports).
A few financial related names slightly higher: HSBC +1.3%, C +1%, PUK +1%.
Metals/mining stocks trading higher: MT +4%, IAG +2.8%, RIO +2%, BBL +1.5%, BHP +0.9%.
A few solar names are modestly higher: SPWR +3.3%, RSOL +1.6%, JKS +1.5%, FSLR +0.4%
Other news: ARQL +28.4% (provides updates on clinical trials in Hepatocellular Carcinoma and Non-Small Cell Lung Cancer with Tivantinib; Data Monitoring Committee approves continuation of Phase 3 METIV-HCC liver cancer trial following safety and pharmacokinetic analyses), NIHD +28.3% ( announces agreement with Apple (AAPL) to bring iPhone to its Nextel Brazil operations ), NLST+8.5% (announces the USPTO has issued Notices of Allowance for two of co's pending patent applications covering core aspects of hybrid memory systems that combine DRAM and FLASH memory technologies), CTIC +7.8% (seeing continued momentum - up 60%+ month to date), KERX +7.1% (announces marketing approval of ferric citrate in Japan), ARIA +6.5% (announces the commercial availability of Iclusig for patients with refractory Philadelphia-positive leukemias in the U.S.), CTRP +3.3% (positive comments by Raymond James analyst on CNBC), TWTR +3.2% (seeing reports that co is nearing a deal with payments startup Stripe; initiated with Buy and $75 at Stifel), TSCO +3.1% (TSCO to replace LIFE in the S&P 500), TS +2.8% (still checking), EA +2.1% (on NPD data - WSJD details news that video game sales fell 17% in December in the US), STRM +1.8% (signs definitive agreement to acquire Unibased Systems Architecture; terms not disclosed), RRTS +1.6% (RRTS to replace ALGN in the S&P SmallCap 600), HLF +1.4% (modestly rebounding from NUS related concerns), SAND +1% ( announces 13.4 g/t over 9.5 meters at Bachelor Lake),GSK +1% (still checking), ILMN +0.6% (outlines strategic roadmap for market expansion), QIHU +0.6% (China search traffic market share increasing to ~ 35% in 2014, according to Marbridge ), ALGN +0.5% ( ALGN to replace RRTS in the S&P MidCap 400)
Analyst comments: OTIV +3.9% (initiated with a Outperform at Northland Capital; tgt $5.25 ), MMP +1.5% (initiated with a Buy at Wunderlich), AGN +1% (upgraded to Buy from Neutral at Sun Trust Rbsn Humphrey), TOT +0.7% (upgraded to Buy from Neutral at Citigroup), STO +0.6% (upgraded to Buy from Hold at Deutsche)
M&A news: MIL +6.1% (to acquire a 100% interest in the FESIL AS Group for ~ 500 mln Norwegian Krone (~ $82 mln); 'not expected to have a material effect on our financial ratios or cause any dilution to our shareholders' equity'), S +3% and TMUS +2.5% (ongoing M&A speculation- Sprint has financing proposals from banks for T-Mobile bid, according to reports).
A few financial related names slightly higher: HSBC +1.3%, C +1%, PUK +1%.
Metals/mining stocks trading higher: MT +4%, IAG +2.8%, RIO +2%, BBL +1.5%, BHP +0.9%.
A few solar names are modestly higher: SPWR +3.3%, RSOL +1.6%, JKS +1.5%, FSLR +0.4%
Other news: ARQL +28.4% (provides updates on clinical trials in Hepatocellular Carcinoma and Non-Small Cell Lung Cancer with Tivantinib; Data Monitoring Committee approves continuation of Phase 3 METIV-HCC liver cancer trial following safety and pharmacokinetic analyses), NIHD +28.3% ( announces agreement with Apple (AAPL) to bring iPhone to its Nextel Brazil operations ), NLST+8.5% (announces the USPTO has issued Notices of Allowance for two of co's pending patent applications covering core aspects of hybrid memory systems that combine DRAM and FLASH memory technologies), CTIC +7.8% (seeing continued momentum - up 60%+ month to date), KERX +7.1% (announces marketing approval of ferric citrate in Japan), ARIA +6.5% (announces the commercial availability of Iclusig for patients with refractory Philadelphia-positive leukemias in the U.S.), CTRP +3.3% (positive comments by Raymond James analyst on CNBC), TWTR +3.2% (seeing reports that co is nearing a deal with payments startup Stripe; initiated with Buy and $75 at Stifel), TSCO +3.1% (TSCO to replace LIFE in the S&P 500), TS +2.8% (still checking), EA +2.1% (on NPD data - WSJD details news that video game sales fell 17% in December in the US), STRM +1.8% (signs definitive agreement to acquire Unibased Systems Architecture; terms not disclosed), RRTS +1.6% (RRTS to replace ALGN in the S&P SmallCap 600), HLF +1.4% (modestly rebounding from NUS related concerns), SAND +1% ( announces 13.4 g/t over 9.5 meters at Bachelor Lake),GSK +1% (still checking), ILMN +0.6% (outlines strategic roadmap for market expansion), QIHU +0.6% (China search traffic market share increasing to ~ 35% in 2014, according to Marbridge ), ALGN +0.5% ( ALGN to replace RRTS in the S&P MidCap 400)
Analyst comments: OTIV +3.9% (initiated with a Outperform at Northland Capital; tgt $5.25 ), MMP +1.5% (initiated with a Buy at Wunderlich), AGN +1% (upgraded to Buy from Neutral at Sun Trust Rbsn Humphrey), TOT +0.7% (upgraded to Buy from Neutral at Citigroup), STO +0.6% (upgraded to Buy from Hold at Deutsche)