TheChek News Flow

After Hours Summary: QTM +14.8%, DRWI +8.6%, NLS +8.5%, BHE +3.1%, HLS +1.8%, BGFV -4.3%, BBW -3.1%, YUM -0.8% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: QTM +14.8%, DRWI +8.6%, NLS +8.5%, BHE +3.1%, HLS +1.8%

Companies trading higher in after hours in reaction to news: ABTL +12.3% (acquired AutoUSA subsidiary of AutoNation; expected to be accretive to Autobytel's 2014 results), DM +9.1% (announced it entered into the Seventh Amendment to its Third Amended and Restated Credit Agreement dated December 6, 2010), PTN +6.5% (stated its policy is not to comment on unusual market activity), FLR +1.9% (co and its joint venture with JGC was awarded an engineering, procurement and construction contract by Chevron Canada Limited), TWC 1.9% (confirmed proposed merger with Time Warner Cable (TWC)), NICE +1.3% (announced that for 2013 it surpassed $1 billion in bookings for the first time in its history)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: BGFV -4.3%, BBW -3.1%, WWW -2.4%, PRXI -1.8%, YUM -0.8%, MTN -0.3%

Companies trading lower in after hours in reaction to news: APU -4.7% (Heritage ETC, an affiliate of Energy Transfer Partners (ETP), to offer 8 mln AmeriGas common units), WDAY -2.0% (announced proposed follow-on offering of 6 mln shares), FULL -1.8% (announced public offering of 1.6 mln shares of common stock), PAL -1.4% (announced announces proposed financing: first tranch of $30 mln of 7.5% convertible unsecured subordinated debentures, second tranch of $20-45 mln of debentures and warrants), IHS -1.2% (announced 3.478 mln share secondary offering of common stock by Conscientia Investment Ltd.)

Asian Market Update: Equities slide as investors question the strength of recovery

***Economic Data*** - (JP) JAPAN NOV CURRENT ACCOUNT BALANCE: -¥592.8B V -¥368.9BE; ADJ CURRENT ACCOUNT: -¥46.6B (third consecutive deficit) V ¥27.9BE; TRADE BALANCE BOP BASIS: -¥1.25T V -¥1.23TE - (JP) JAPAN DEC BANKRUPTCIES Y/Y: -15.7% V -10.6% PRIOR - (JP) JAPAN DEC BANK LENDING EX TRUSTS Y/Y: 2.6% V 2.4% PRIOR; BANK LENDING INCL TRUSTS Y/Y: 2.3% V 2.2% PRIOR - (NZ) NEW ZEALAND DEC QV HOUSE PRICES Y/Y: 10.0% V 9.2% PRIOR (fastest pace in six years) - (NZ) NEW ZEALAND DEC RETAIL CARD SPENDING M/M: 0.6% V 1.0%E; TOTAL CARD SPENDING M/M: 1.0% V 0.2% PRIOR - (NZ) NEW ZEALAND Q4 NZIER BUSINESS OPINION SURVEY: 52 V 38 PRIOR (multi-year high) - (KR) SOUTH KOREA DEC EXPORT PRICE INDEX M/M: -0.3% V -0.8% PRIOR; Y/Y: -2.1% V -2.5% PRIOR; IMPORT PRICE INDEX M/M: +0.4% V -0.5% PRIOR; Y/Y: -3.5% V -4.9% PRIOR

***Observations/Insights*** - Time Warner Cable board formally rejects Charter Communications bid, deeming it "well below comparable transaction multiples". - Nikkei falls over 3% in afternoon trade, weighed down by stronger JPY and large decline in US indices. Separately, Japan posted a rise in current account deficit, prompting concern from cabinet officials. - PBoC was on the sidelines on open market operations for the 3rd week; Speculation over China 2014 GDP from analysts spanning a wide range - as low as 7.0% to as high as 8.6%. - US Q4 earnings focus turns to banks, with JPMorgan and Wells Fargo reporting results before market open.

***Fixed Income/Commodities/Currencies*** - (JP) BOJ offers to buy ¥250B in 1-3 yr JGB, ¥250B in 3-5 yr JGB, ¥400B in 5-10yr JGB and ¥2.5T in T-bills - (CN) PBoC won't conduct open market operations (OMO) in today's session (6th consecutive session of halted operations) - (CN) China Gold Association: China Nov gold production 44.5T v 39.8T m/m - financial press - USD/CNY: (CN) PBoC sets yuan mid point at 6.0930 v 6.0950 prior setting (record high setting for Yuan) - SLV: iShares Silver Trust ETF daily holdings fall to 9,894 tonnes (lowest since 9,890 on June 26th) from 9,954 tonnes

- USD/JPY and AUD/USD saw the largest moves among the USD majors, as both pairs consolidated some of the recent dollar weakness in the wake of poor jobs data. USD/JPY rose about 50pips from session-opening lows to as high as 103.50 before retreating from those highs, while AUD/USD fell over 30pips to $0.9020. Regional economic calendar is quiet until the Thursday release of Australia jobs data, and analysts appear to be divided on whether the unemployment rate will continue to edge higher toward 6%. Meanwhile, the focus turns to US retail figures in US session for confirmation of a tepid holiday season in December.

***Speakers/Political/In the Papers*** - (CN) 5 companies in China confirm to delay IPO listing after China Securities Regulatory Commission (CSRC) tightens IPO policies - financial press - (CN) Deutsche Bank sees China 2014 GDP as high as 8.6% - China Daily - (CN) CitiGroup: reiterates China 2014 GDP target 7.3% - (CN) UBS chief China economist: If China meets its major challenges properly, it can achieve 2014 GDP of 7.8%, up from expected 7.6% in 2013 - Shanghai Daily (update) - (CN) Several provinces in China release GDP expectations; Sees slower GDP growth rate in 2014 v 2013 - (CN) Fitch: Sees China 2013 GDP at 7.6% v 7.5% official target, sees 2014, 2015 GDP at 7.0% - Chinese press - (JP) Japan Econ Min Amari: need to focus on current account deficit - (KR) South Korea Trade Ministry: govt attempts to stabilize fx market against weaker Yen - financial press - (NZ) Westpac senior economist: Still believe that RBNZ will start raising OCR in March; To use next meeting on Jan 30th to signal rate hike - NZ press

- (US) Follow up: House, Senate appropriators unveil $1T US spending measure; would fund govt through to Sept 30

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -2.4%, S&P/ASX -1.5%, Kospi -0.2%, Shanghai Composite +0.6%, Hang Seng -0.2%, Mar S&P500 +0.1% at 1,816, Feb gold flat at $1,251, Feb crude oil +0.2% at $91.97/brl

US markets: - TWC: Board unanimously rejects 3rd proposal from Charter Communications; Proposal well below comparable transaction multiples +1.9% afterhours - BHE: Expects EPS, Rev to exceed high-end of Q4 guidance of $0.34-0.38 v $0.36e, Rev $685-715M v $677Me; +3.1% afterhours - FLR: Awarded order with JGC Corp from Chevron for LNG project in Canada; Total order to be around ¥500B - Nikkei News; +2.5% afterhours - HLS: Guides FY13 EPS higher to $2.50-2.52 ($2.43-2.46 prior); EBITDA higher to $542-545M ($533-538M prior); +1.8% afterhours - REGN: Enters into agreement with Bayer to develop new treatment option for wet age-related macular degeneration; REGN to receive $25.5M upfront payment; +0.1% afterhours - YUM: Reports Dec China SSS +2.0% v +1.0% m/m; -0.8% afterhours

Notable movers by sector: - Consumer Discretionary: China LotSynergy Holdings 1371.HK +12.0% (extends cooperation with China Mobile); FAW Cars 000800.CN +4.6%, Dongfeng Motor 600006.CN +7.0%, Shenyang Jinbei Automotive 600609.CN +10.0% (China issues statement on military-use vehicles); Great Wall Motor 2333.HK -11.5% (delays launch of Haval H8 Model) - Financials: Jiangsu Phoenix Property Investment 600716.CN +4.0% (strategic alliance); Shaanxi International Trust 000563.CN +2.2% (prelim FY13 results); Citychamp Dartong 600067.CN +3.6% (FY13 guidance) - Materials: Inner Mongolia Yuan Xing Energy 000683.CN +2.8% (FY13 guidance); Forge Group FGE.AU -17.6% (expects additional profit write-down); Regis Resources RRL.AU -5.5% (Q4 gold production) - Technology: Sumavision Technologies 300079.CN +5.7% (proposes special dividend); Ingenic Semiconductor 300223.CN +4.9% (positive comment from Chinese press); Sun King Power Electronics Group 580.HK +10.7% (positive profit alert); Synnex Technology International Corp 2347.TW +5.7% (Dec results) - Healthcare: Livzon Pharmaceutical Group 000513.CN +3.1% (prelim FY13 result)

Google to Buy Nest Labs for $3.2 Billion Google agreed to buy Nest Labs for $3.2 billion in cash, extending the company's reach into the home. Nest Labs makes household devices like thermostats and smoke alarms that can be controlled by an app.

Closing Market Summary: Stocks End on Lows as Retailers Weigh

The stock market endured a forgettable start to the new trading week as the major averages ended on their lows. The S&P 50 fell 1.3%, ending at its lowest level of 2014. Equities began the session with modest losses and spent the first three hours of action near their flat lines. The indices were able to inch back into positive territory during the late morning, but the move lacked conviction and failed to invite dip-buyers to the party. Shortly thereafter, sellers were the ones partying as the indices spent the entire afternoon in a steady downdraft.

In all likelihood, the selling was exacerbated by the fact many participants were not positioned to absorb today's volatility. On that note, the CBOE Volatility Index (VIX 13.37, +1.23) began the session in the red and tested multi-month lows before afternoon weakness sparked a rush for downside protection. All ten sectors ended in the red but cyclical groups saw the largest losses. The consumer discretionary sector (-2.0%) finished behind the remaining groups as retailers lagged after Bon-Ton Stores (BONT 13.41, -2.09), Express (EXPR 18.15, -0.87), Lululemon (LULU 49.70, -9.90), and PVH (PVH 129.55, -2.58) issued disappointing guidance. The four names lost between 2.0% and 16.6% while the SPDR S&P Retail ETF (XRT 83.36, -2.48) fell 2.9%, widening its January loss to 5.4%. For its part, the discretionary sector extended its January decline to 2.6% after ending 2013 ahead of the remaining nine sectors with a gain of 40.4%. Elsewhere, the energy space (-1.9%) also played a significant part in pressuring the broader market. The sector lagged throughout the session as crude oil fell 0.9% to $91.78 per barrel. The other commodity-related sector—materials (-1.4%)—fared a bit better but also finished behind the S&P 500 even as gold futures added 0.4% to $1251.10 per troy ounce.

On the countercyclical side, consumer staples (-0.6%), health care (-0.8%), telecom services (-1.1%), and utilities (-0.9%) finished ahead of the broader market. In M&A news, Beam (BEAM 83.42, +16.45) surged 24.6% after the company agreed to be acquired by Suntory Holdings for $83.50 per share. Despite the selloff, participation was below average as 719 million shares changed hands on the floor of the New York Stock Exchange.

Treasuries ended on their highs with the 10-yr yield down three basis points at 2.83%. Economic data was limited to the December Treasury budget, which showed a surplus of $53.20 billion after showing a deficit of $1.20 billion in December 2012. Tomorrow, December Retail Sales as well as December export prices ex-agriculture and import prices ex-oil will be reported at 8:30 ET while the November Business Inventories report will cross the wires at 10:00 ET.

o Russell 2000 -1.2% YTD o Nasdaq -1.5% YTD o S&P 500 -1.6% YTD o DJIA -1.9% YTD

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McKesson Likely to Make Another Celesio Offer: Sterne Agee 2014-01-13 19:51:48.906 GMT

By Joshua Fineman and Catherine Larkin Jan. 13 (Bloomberg) -- Any dissenting Celesio holders may be swayed to vote for revised McKesson deal due to certainty of tender offer, Sterne Agee analyst Greg Bolan wrote in note. * MCK “material” accretion assumed in Street models; MCK has already done a lot of work on deal, likely MCK makes “one more attempt” for Celesio * MCK remains buy at Sterne Agee, PT $185, Bloomberg avg. $183 * MCK may look to form a purchasing JV after CVS, CAH made similar agreements; MCK likely to do shr repurchase in N-T if some JV opportunity doesn’t happen, Leerink analyst David Larsen says in note * MCK weakness is buying opportunity; see stock floor ~$150/shr: Leerink; remains outperform, PT $180 * NOTE: Earlier, MCK CEO said will continue to look for M&A, JV opps * NOTE: Earlier, MCK T/O offer for Celesio failed to meet reqd 75%

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

To contact the reporters on this story: Joshua Fineman in New York at +1-212-617-8953 or jfineman@bloomberg.net; Catherine Larkin in Chicago at +1-312-443-5968 or clarkin4@bloomberg.net

To contact the editor responsible for this story: Joanna Ossinger at +1-212-617-7789 or jossinger@bloomberg.net

Fed's Lockhart (moderate, FOMC alternate): There are concerning aspects to low inflation and weak jobs market, supports a similar level of tapering as seen in December through the remainder of 2014 if the economic picture stays positive - Low monetary policy rate will remain appropriate well after the point when unemployment drops below 6.5% - The December jobs report was surprisingly soft. The decline in the unemployment rate likely overstates the health of the job market. - Downside risks to the economy have lessened, uncertainty holding back the economy has declined, upside growth surprise has become more likely this year. - Entering 2014 on a more solid economic footing, sees 2014 GDP +2.5-3.0%. - Taper decision was based on economic assessments. Tapering will continue if the recovery continues. - Repeated false starts to the economic recovery means we must remain cautious. - There has been a disinflationary trend for the last two years, expects inflation to turn around as growth speeds up. - There is little upwards wage pressure to drive inflation. - Appreciation in the stock market does not look like it is a bubble, however would like to see corporate earnings validate stock market gains - Q&A - A broad range of indicators shows that inflation is too low.

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Novartis Seeks Bolt-On Deals to Strengthen 3 Main Businesses 2014-01-13 17:47:58.366 GMT

By Albertina Torsoli and Catherine Larkin Jan. 13 (Bloomberg) -- Novartis CEO Joe Jimenez defines bolt-ons as deals up to $5b in Q&A session at JPMorgan health conf. in S.F. * Doesn’t see big, transformative deals as necessary * NVS may consider alternative structures in business review * CEO declined to comment further on portfolio review * CEO “not happy” with level of income margins, predicts pressure on costs to increase margins * NOTE: Earlier, Novartis CEO Says Portfolio Review Is Ongoing

Link to Company News:NOVN VX <Equity> CN <GO>

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

To contact the editor responsible for this story: Catherine Larkin at +1-312-443-5968 or clarkin4@bloomberg.net

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BN 01/13 17:59 *HANIEL CO GEMKOW SAYS MCKESSON WOULD HAVE BEEN GOOD PARTNER BN 01/13 17:58 *HANIEL COMMENTS IN E-MAILED STATEMENT BN 01/13 17:58 *HANIEL FAILURE OF MCKESSON BID `A PITY, NOT END OF THE WORLD' BN 01/13 17:58 *HANIEL TAKING TIME TO CONSIDER ALL OPTIONS FOR CELESIO

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Haniel Taking Time to Consider All Options for Celesio 2014-01-13 18:10:24.107 GMT

By Phil Serafino Jan. 13 (Bloomberg) -- German family-owned investment co comments in e-mailed statement. * Firm regrets that McKesson offer for Celesio failed to get enough shares tendered * “McKesson would have been a very good partner for the ongoing strategic development of Celesio,” Haniel CEO Stephan Gemkow says. “Thus, it is a pity that the takeover bid has failed. Nonetheless, it is not the end of the world for either Haniel or Celesio AG, which is strategically very well positioned. We can now take our time at Haniel to calmly analyse the situation and consider all options.” Earlier: McKesson Says Celesio Tender Offer Failed to Meet 75% Completion {NSN MZCPFM6TTDSC <go>}

Link to Company News:{1048Z GR <Equity> CN <GO>} Link to Company News:{CLS1 GR <Equity> CN <GO>} Link to Company News:{MCK US <Equity> CN <GO>}

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

To contact the editor responsible for this story: Phil Serafino at +33-1-5530-6277 or pserafino@bloomberg.net