>>> US Early premarket gappers

Early premarket gappers

Gapping up: TC +23.3%, OPTT +13.6%, DRWI +12.6%, QTM +10.7%, NLS +10%, TNK +9.2%, DM +5.6%, TSU +3.3%, BHE +3.1%, STM +2.8%, CTIC +2.7%, JNPR +2.7%, FLR +2.6%, ARMH +2.4%, CTB +2.1%, HLS +1.8%, CHTR +1.7%, TWC +1.6%, GOOG +1.5%, UN +1.5%, TLYS +1.4%, JNPR +1.1%, DB +1%, YRCW +0.8%, SHLD +0.7%

Gapping down: APU -5.2%, BGFV -4.4%, HMY -3.3%, RAS -3.2%, GFI -3%, WWW -2.5%, WDAY -2.1%, DAN -1.8%, FULL -1.7%, DDD -1.7%, GNW -1.5%, SSYS -1.4%, VALE -1.1%, IHS -1%, YUM -0.7%, ALNY -0.5%

>>> JPMorgan Chase beats GAAP by $0.06, beats Adjusted by $0.06; reports revs in

JPMorgan Chase beats GAAP by $0.06, beats Adjusted by $0.06; reports revs in-line (57.70)
Reports Q4 (Dec) earnings of $1.30 per share, $0.06 better than the Capital IQ Consensus Estimate of $1.24; The Firm's return on tangible common equity for the fourth quarter of 2013 was 14%, compared with 15% in the prior year. Adjusted for the significant items EPS would have been $1.40 this year compared with $1.35 in the prior year and CapIQ adjusted consensus of $1.34.ROTCE would have been 15% this year, flat compared with the prior year.

Revenues on a reported basis fell 2.1% year/year to $23.16 bln vs the $23.19 bln consensus.

Fourth-quarter results included the following significant items:
    • An increase of $812 million after-tax ($0.21 per share) from gain on sale of Visa shares;
    • An increase of $306 million after-tax ($0.08 per share) from gain on sale of One Chase Manhattan Plaza;
    • A decrease of $1.1 billion after-tax ($0.27 per share) for legal expense, including announced Madoff settlements;
    • An increase of $775 million after-tax ($0.20 per share) from reduced reserves in Real Estate Portfolios & Card Services;
    • A decrease of $1.2 billion after-tax ($0.32 per share) from funding valuation adjustments ("FVA") and debit valuation adjustments1 ("DVA").
  • Fortress balance sheet maintained Basel I Tier 1 common of $149 billion, and ratio of 10.7%
    • Estimated Basel III Tier 1 common ratio of 9.5%
    • High Quality Liquid Assets of $522 billion
    • Book Value $53.25 compared to $52.01 in Q3
Consumer & Community Banking:
  • Net income was $2.4 billion, an increase of $383 million, or 19%, compared with the prior year, due to lower provision for credit losses and lower noninterest expense, largely offset by lower net revenue. Net revenue was $11.3 billion, a decrease of $1.0 billion, or 8%, compared with the prior year. Net interest income was $7.1 billion, down $199 million, or 3%, driven by spread compression in Credit Card, lower deposit margins and lower loan balances due to portfolio runoff, partially offset by higher deposit balances. The provision for credit losses was $72 million, compared with $1.1 billion in the prior year and a benefit of $267 million in the prior quarter.
  • Mortgage originations were $23.3 billion, down 54% from the prior year and 42% from the prior quarter. Purchase originations of $13.0 billion were up 6% from the prior year and down 35% from the prior quarter. Mortgage Banking net income was $562 million, an increase of $144 million, or 34%, compared with the prior year, driven by lower noninterest expense and provision for credit losses, predominantly offset by lower net revenue. Net revenue was $2.2 billion, a decrease of $1.1 billion compared with the prior year.
  • Mortgage Servicing pretax income was $2 million, compared with a pretax loss of $913 million in the prior year, reflecting lower expense and higher revenue. Mortgage net servicing-related revenue was $689 million, an increase of $71 million. MSR risk management was a loss of $24 million, compared with income of $42 million in the prior year.
  • Card, Merchant Services & Auto net income was $1.0 billion, an increase of $190 million, or 23%, compared with the prior year, driven by lower provision for credit losses, partially offset by lower net revenue. Net revenue was $4.7 billion, down $140 million, or 3%, compared with the prior year. Net interest income was $3.3 billion, down $222 million compared with the prior year, primarily driven by spread compression in Credit Card.
Corporate & Investment Banking:
  • Net income was $858 million, down 57% compared with the prior year. These results primarily reflected lower revenue and a lower benefit from the provision for credit losses, partially offset by slightly lower noninterest expense. Net revenue was $6.0 billion compared with $7.6 billion in the prior year. Net revenue included a $1.5 billion loss as a result of implementing a funding valuation adjustment ("FVA") framework for OTC derivatives and structured notes. This change reflects an industry migration towards incorporating the cost or benefit of funding into their valuation; the majority of this adjustment relates to uncollateralized derivatives. Net revenue also included a $536 million loss from debit valuation adjustments.
  • Banking revenue was $3.0 billion, down 4% from the prior year.
  • Investment banking fees were $1.7 billion, down 3% from the prior year, driven by lower debt underwriting fees of $801 million, down 19% from a record prior year, and by lower advisory fees of $434 million, down 7% from the prior year. This was predominantly offset by higher equity underwriting fees of $436 million, up 65% from the prior year, on strong market issuance and improved market share.
  • Treasury Services revenue was $1.0 billion, down 7% compared with the prior year, driven by lower trade finance revenue.
  • Lending revenue was $373 million, primarily reflecting net interest income on retained loans, fees on lending-related commitments, and gains on securities received from restructured loans.
  • Markets & Investor Services revenue was $3.0 billion, down 33% from the prior year.
  • Combined Fixed Income and Equity Markets revenue was $4.1 billion, flat compared with the prior year. In the prior year, Fixed Income Markets also included a modest loss from the synthetic credit portfolio.
  • Securities Services revenue was $1.0 billion, up 3% from the prior year, primarily driven by higher custody and fund services revenue, due largely to higher assets under custody and higher deposits.

>>> Luxury : watch export will rise slowest pace in 4y

LUXURY: Watches - Switzerland’s watch exports will rise in 2014 after advancing at the slowest pace in four years in 2013 due to a drop in Chinese demand, said Jean-Daniel Pasche, head of the Federation of the Swiss Watch Industry…View: Citi forecast +8% for 2014 (wristwatches), we get a trading update from Richemont on Thursday, Citi expect +10% organic in 3Q to Dec, Oct was +12 (but +9 ex one off high jewellery sale), this implies +9 in Nov-Dec combined).

(Barclays) Telco : Global Matters: Market Momentum

We leverage Barclays’ global Telecom coverage to highlight the most attractive investment opportunities. Our detailed bespoke market model assesses the relative regulatory, competitive and cashflow dynamics of over 40 Telecom markets. Given that valuation is currently relatively well correlated to real growth, we identify markets that are showing signs of inflection and therefore have scope for a rerating or derating. Our most preferred stocks globally are as follows: BT, Telenor, KPN, MTN, Liberty Global, Tim Brasil, Bezeq, AIS, HKT, PT Telkom and Bharti (all rated OW).

top picks. BT (£4.10 PT, 7% potential upside), Telenor (NOK165 PT, 13% upside), KPN (€2.60 PT, 2% upside), MTN (ZAR222 PT, +5% upside), Liberty Global ($96 PT, 7% upside), Tim Brasil ($27.0 PT, -2% upside), Bezeq (ILS6.50 PT, 12% upside), AIS (THB265 PT, 27% upside), HKT (HKD8.40 PT, 11% upside), PT Telkom (IDR2,500 PT, 20% upside) and Bharti (INR393 PT, 19% upside).

>>> Celesio Indicated 13% lowe in Pre-Market : McKesson says Celesio takeover of

McKesson says Celesio takeover offer has failed

FRANKFURT, Jan 13 (Reuters) - U.S. drugs wholesaler group McKesson said on Monday it had failed to win enough support for a $8.4 billion offer to buy German distributor Celesio, leaving it empty-handed in a sector where cross-border consolidation is accelerating.
The suitor last week raised its offer for Celesio to 23.50 euros per share from 23 euros following pressure from activist hedge fund investor Elliott, which had become Celesio's second-largest shareholder behind Franz Haniel & Cie GmbH.
But McKesson said on Monday it had still failed to get across the 75 percent threshold for acceptances which it had set as a condition for going ahead with the higher offer.
"While we are disappointed that we were not successful in completing our offers for Celesio, we have a track record of great performance, a strong balance sheet and demonstrated leadership and scale across our markets," McKesson's chairman and chief executive, John Hammergren, said in a statement.
"We are well positioned and will continue to explore and evaluate opportunities to further strengthen our businesses through our disciplined approach to capital allocation."
McKesson shares were down 4.9 percent at $167 at 1900 GMT.
The setback leaves McKesson without a partner while elsewhere in the industry, cross-border tie-ups are picking up speed.
McKesson-Celesio would have eclipsed another transatlantic tie-up in drugs trading, the purchase of a 45 percent stake in European pharmacy chain Alliance Boots by U.S. peer Walgreen Co in 2012.
Alliance and Walgreen have close to $110 billion in annual revenue between them but are looking to bulk up further as they build a stake in distributor AmerisourceBergen.
Pharmacy chain CVS Caremark and drugs distributor Cardinal Health last month struck a 10-year agreement to form the largest generic drug sourcing operation in the United States.
Some analysts think the McKesson should give it another try.
"With material accretion assumed in Street models coupled with all of the work McKesson has committed to this deal, we would have to think the company makes one more attempt for Celesio," said Greg Bolan, an analyst at Sterne Agee.
Franz Haniel & Cie GmbH, which holds a 50.01 percent stake in Celesio and had accepted the original offer, said it regretted that the bid was not successful.
"We can now take our time at Haniel to calmly analyse the situation and consider all options," Chief Executive Stephan Gemkow said in a statement.
No one at Elliott was immediately available to comment.
Left on its own, Celesio said it would resume a strategy it had drawn up before the takeover offer.
In response to a tough business environment, Celesio Chief Executive Marion Helmes had been centralising procurement to cut costs, as well as widening and standardising the offering of its pharmacies across Europe under the Lloyds brand.
"Our strategy to widen our network of pharmacies and our central procurement and to optimise the supply chain is successful and will be pursued further as before," Helmes said on Monday.
Celesio has been in a price war that has all but erased profit from a crowded German drugs wholesale market. Healthcare cuts across Europe, its main market, have added to woes.
But even before the bid Helmes had conceded that an alliance or tie-up with a U.S. partner could help win steeper discounts, mainly for the generic drugs it buys but also for non-prescription medication and skincare products.

(BFW) CREDIT: Fiat CDS Cut to UW-30% vs OW-30% at BofAML

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CREDIT: Fiat CDS Cut to UW-30% vs OW-30% at BofAML 2014-01-14 07:49:05.626 GMT

By Francesca Cinelli Jan. 14 (Bloomberg) -- Cuts recommendation on Fiat following deal to buy out remainder of Chrysler; downgrades Fiat bond curve, with some exceptions, to Underweight-70% (expected spread underperformance) from Underweight-30% (investment offers unattractive carry with spreads unlikely to widen) as spreads don’t reflect weak fundamentals at Fiat. * While sees continued growth in North America and Luxury division, and gradual recovery in Europe, expects cash generation to remain poor because of substantial increase in capex * Initiates on Fiat 7.75% 2016 bonds, 6.625% 2018 bonds and 6.75% 2019 bonds with an Underweight-70% * Keeps Overweight-70% (carry, plus some spread tightening expected) on Fiat 7.625% 2014, 6.875% 2015 and 5.625% 2017 bonds which benefit from joint-guarantee from CNH Industrial

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To contact the editor responsible for this story: Francesca Cinelli at +39-02-80644-252 or fcinelli@bloomberg.net

(BFW) Fossati Says Telecom Italia Brazil Unit Worth EU30b: Sole

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Fossati Says Telecom Italia Brazil Unit Worth EU30b: Sole 2014-01-14 07:19:50.292 GMT

By Daniele Lepido Jan. 14 (Bloomberg) -- Findim Chairman Fossati wrote to Telecom Italia board, Il Sole 24 Ore reports. * 100% of Tim Brasil unit would be valued at as much as EU30b, considering premium prices, savings and country’s economic growth: Sole * Tim Brasil standalone value EU17b using multiples paid by Telefonica in 2010 for 50% of Vivo: Sole * New Telecom Italia board scheduled to meet Feb. 6 to change co. governance: Sole * NOTE: Telecom Italia Directors Said to Impede Brazil Unit Sale NSN MYU9RW6S972B <GO> * NOTE: Telecom Italia Should Alter Governance, Fossati Tells Messaggero NSN MZ8P2V6JIJUO <GO>

Link to Company News:TIT IM <Equity> CN <GO> Link to Company News:TEF SM <Equity> CN <GO> Link to Company News:TIMP3 BZ <Equity> CN <GO> Link to Company News:0852578D LX <Equity> CN <GO>

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To contact the editor responsible for this story: Daniele Lepido at +39-02-8064-4266 or dlepido1@bloomberg.net

(BFW) Campari Has Limited Upside from M&A/New Country Rollouts: BofAML

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Campari Has Limited Upside from M&A/New Country Rollouts: BofAML 2014-01-14 07:23:16.823 GMT

By Francesca Cinelli Jan. 14 (Bloomberg) -- Doesn’t see major deals in S/T, highlights on-going integration of Appleton Rum coupled with operational challenges in core business. * Says Campari likely interested in picking up non-core brands from Beam; Suntory won’t need to make any disposals due to competitive overlaps because of limited presence in U.S., * Says positives (strong management, M&A track-record) more than priced in Campari shrs * Campari kept at underperform; PT EU5.6 * NOTE from yday: Suntory to acquire Beam for $16b {NSN MZCA006TTDSH <go>}

Link to Company News:{CPR IM <Equity> CN <GO>}

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To contact the editor responsible for this story: Francesca Cinelli at +39-02-80644-252 or fcinelli@bloomberg.net

>>> Lundin Petroleum AB Issues drilling update

Lundin Petroleum AB Issues drilling update
- Announces that drilling of exploration well 7222/11-2 in PL659 has commenced. The well will target the Langlitinden prospect, which is located some 80 km northeast of the Snhvit Field in the Barents Sea.
- The main objective of well 7222/11-2 is to prove the presence of hydrocarbons in sandstones of the Triassic Kobbe Fm. Lundin Petroleum estimates the Langlitinden prospect to have the potential to contain unrisked, gross prospective resources of 220 million barrels of oil equivalent (MMboe).
- The planned total depth is 2,901 metres below mean sea level and the well will be drilled using the drilling rig Transocean Barents. Drilling is expected to take approximately 50 days.