TheChek News Flow

Will 2014, as many observers believe, once again be dominated by equity bulls and bond bears? As the Federal Reserve gradually moves towards phasing out quantitative easing – possibly by the end of the year – and the focus begins to turn to the possibility of a rise in interest rates, volatility across asset classes looks likely to rise. "For risk markets, the higher volatility on ‘safe haven’ bonds and less ­concern over the inflation outlook should continue to help the flow of money into equities," says Divyang Shah, global strategist at IFR Markets. "2013 has seen record highs on the S&P 500 and Dax and the tail-end of the year also witnessed the Nikkei 225 breaking through 16,000 to the highest level since October 2008. Yen weakness has certainly helped and with the Bank of Japan likely to deliver a further burst of quantitative easing in April, the trends of higher Nikkei and dollar/yen should continue." Analysts at JPMorgan predict that the S&P 500 index will rise to 2,075 by the end of the year from its current level of 1,848. "2014 will represent the sixth year of the US equity bull market which began in March 2009 and is progressing like a ‘classic’ secular bull market," JPMorgan says. "Historically, by looking at previous equity market cycles, the sixth year of a bull market has been very strong, which is why we see another very strong gain in 2014." Much will depend, of course, on how well the US economy holds up. The Fed’s decision to begin scaling back its monthly asset purchases came amid increasing evidence of improvement in the US labour market – although the central bank sweetened the pill by indicating that interest rates will be kept near zero "well past" the time when unemployment falls to 6.5 per cent. "The timing of the first fed funds hike is uncertain, but our baseline forecast remains mid-2015," say analysts at Barclays. "Inflation remains well below the Fed, European Central Bank and Bank of Japan objectives, implying highly expansive monetary conditions and the potential for further easing by the latter." Julian Jessop at Capital Economics says the purely economic case for more monetary stimulus in Japan, on top of that already planned, may not become clear until the second half of 2014. "Whatever the precise timing of the next major policy announcement, the Bank of Japan’s clear easing bias should maintain the downward pressure on the yen and provide further support for asset prices, including equities and Japanese government bonds," he says. In the eurozone, meanwhile, concerns over the region’s debt crisis faded in 2013, largely in response to European Central Bank policy. But severe divergences in economic performance across the region remain, and are likely to pose significant challenges to the central bank in 2014, analysts say. "The ECB has remained the firefighter but is quickly running out of options," says Natascha Gewaltig at Action Economics. "Lending continues to contract, and 2014 will bring the ECB’s asset quality review and stress tests, which will put further pressure on banks and could limit lending again."

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BFW 01/01 18:29 *VEBA TRUST WILL RECEIVE AGGREGATE CONSIDERATION OF U.S.$3.65B BN 01/01 18:28 *FIAT TO BUY VEBA'S 41.46% STAKE IN CHRYSLER GROUP BN 01/01 18:28 *VEBA TRUST WILL RECEIVE AGGREGATE CONSIDERATION OF U.S.$3.65B BN 01/01 18:27 *FIAT - FIAT TO BUY REMAINING EQUITY INTERESTS FROM VEBA BN 01/01 18:26 *FIAT TO BUY REMAINING INTERESTS IN CHRYSLER FROM VEBA TRUST BN 01/01 18:26 *FIAT - FIAT TO BUY REMAINING EQUITY INTERESTS IN CHRYSLER GR

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*FIAT TO BUY REMAINING INTERESTS IN CHRYSLER FROM VEBA TRUST 2014-01-01 18:27:25.879 GMT

--JERAN WITTENSTEIN

-0- Jan/01/2014 18:27 GMT

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BN 01/01 06:59 *LEVIATHAN PARTNERS SAY SALE COULD CLEAR `CARTEL' CLAIMS BN 01/01 06:59 *LEVIATHAN PARTNERS IN TALKS WITH ANTITRUST ORGANIZATION BN 01/01 06:59 *PARTNERS SAY FUTURE DEAL MAY INCLUDE SALE OF TWO SMALLER FIELDS

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Noble, Delek in Talks With Antitrust to Avert Cartel Designation 2014-01-01 07:05:12.627 GMT

By Shoshanna Solomon Jan. 1 (Bloomberg) -- Leviathan partners may agree to sell their holdings in “Tanin” and “Karish” fields in exchange for the Antitrust’s agreement to drop threats to designate the partnership as a cartel: Tel-Aviv Stock Exchange statement

Link to Company News:{7772264Z IT <Equity> CN <GO>} Link to Company News:{AVNRL IT <Equity> CN <GO>} Link to Company News:{DEDRL IT <Equity> CN <GO>} Link to Company News:{DLEKG IT <Equity> CN <GO>} Link to Company News:{NBL US <Equity> CN <GO>}

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To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at +972-3-542-7108 or ssolomon22@bloomberg.net

To contact the editor responsible for this story: David Wainer at +972-3-542-7110 or dwainer3@bloomberg.net

Closing Market Summary: Stocks Finish Banner Year on Upbeat Note

The major averages wrapped up a memorable year with a forgettable final session. The S&P 500 added 0.4%, extending its 2013 price return to 29.6%. Given its banner year, it was appropriate for the index to end 2013 at a fresh all-time high of 1848.35. The Dow Jones Industrial Average soared 26.5% in 2013 and ended at a record high of its own. Although the Dow (+0.4%) and S&P 500 (+0.4%) saw comparable gains today, the Nasdaq (+0.5%) fared a bit better. That was the theme throughout the year as the tech-heavy index rallied 38.3%. Similar to earlier sessions of the week, today's affair felt like it was taking place in slow motion until indices roared to fresh highs during the final hour. As a result, paltry intraday NYSE volume turned into a more respectable final tally of 558 million. Seven of ten sectors registered gains as cyclical groups provided leadership. The energy sector (+0.9%) led from the start with Phillips 66 (PSX 77.13, +2.41) contributing to the strength after Berkshire Hathaway (BRK.B 118.56, +0.52) agreed to acquire Phillips Specialty Products, a flow improver business. Strikingly, the energy sector rallied even as crude oil slipped 0.8% to $98.46/bbl. Elsewhere, the other commodity-related group—materials (+0.3%)—posted a modest gain as miners displayed strength. The Market Vectors Gold Miners ETF (GDX 21.13, +0.49) gained 2.7% as gold futures ended little changed at $1202.70/ozt. Unlike the S&P 500, the yellow metal will be happy to see the calendar turn to 2014 after seeing its price plunge 28.0% in 2013.

Outside of energy, the technology sector (+0.7%) was the only other noteworthy outperformer. The largest component, Apple (AAPL 561.02, +6.50), broke its four-day losing streak, gaining 1.2%. With regard to momentum names, Twitter (TWTR 63.65, +3.14) rallied 5.2% after falling nearly 17.5% over the past two sessions while the top S&P 500 component of 2013, Netflix (NFLX 368.17, +1.18), added 0.3%, extending its 2013 gain to 297.3%. Fittingly, the S&P 500's top performer of 2013 resides in the strongest sector of the year, consumer discretionary, which finished with an annual gain of 41.0%. On the countercyclical side, consumer staples (-0.1%), health care (-0.1%), and telecom services posted modest losses while utilities (+0.2%) finished slightly higher. Treasuries ended on their lows after spending the day in a steady downtrend. The 10-yr yield rose six basis points to 3.04%.

Today's economic data featured three reports: o The October Case-Shiller 20-city Home Price Index rose 13.6% while a 13.8% increase had been expected by the consensus. This follows the previous month's increase of 13.2%.

o The Chicago PMI reading for December dropped to 59.1 from 63.0 while the consensus expected a decline to 60.0. The reported decrease was not too concerning given that readings above 60.0 are not sustainable for a long time. Production growth slowed as the related index fell to 57.9 from 64.3. The weakness stemmed from a softening in new orders growth, from 68.8 in November to 60.7 in December.

o The December Consumer Confidence Index increased to 78.1 from 72.0 while the consensus expected an increase to 77.1. Although the index posted a solid increase, the jump was a result of consumer attitudes returning to pre-government shutdown levels. In reality, confidence levels have essentially held steady since late summer. o There is no economic data on tomorrow's schedule as bond and equity markets will be closed for New Year's Day. On Thursday, weekly initial claims will be released at 8:30 ET while November construction spending and the December ISM Index will both cross the wires at 10:00 ET. With the year drawing to a close, we at Briefing.com would like to wish all of our readers a happy and healthy start to 2014.

o Nasdaq +38.3% YTD o Russell 2000 +37.0% YTD o S&P 500 +29.6% YTD o DJIA +26.5% YTD

Strong Gains for Europe Stocks in 2013

Stoxx Europe 600 Index Rose 17% in Biggest Annual Gain Since 2009 European stocks cemented their biggest annual gain since 2009, edging up in the final session of the year. At Tuesday's close, London's FTSE 100 index had risen 0.3% to 6749.09, up 14% for the year. France's CAC-40 added 0.5% to end the year at 4295.95, 18% higher. In Germany, where trading for the year wrapped up on Monday, the DAX index has surged 26% in 2013. The pan-European Stoxx Europe 600 Index has risen 17% in 2013, the biggest annual gain since 2009, boosted by the gradual improvement in the European economy and the easy-money policies of global central banks. With the region's debt crisis continuing to ease, investors have stepped in to pick up bargains, with cash flowing into European equity funds after years of outflows. Countries that fell out of favor with investors during the euro-zone's protracted debt woes have also been strong performers this year. Spain's IBEX 35 and Italy's FTSE MIB have gained 21% and 17% respectively, while Greece's ATHEX Composite leapt by 28%. Europe's markets have enjoyed a particularly strong end to the year as investors shrugged off the U.S. Federal Reserve's decision earlier this month to scale back its monetary stimulus, taking the move as a sign the recovery is gathering pace in the world's largest economy. That confidence has also bolstered stocks on Wall Street, with the Dow Jones Industrial Average reaching a fresh record close Monday, on track for its best annual performance since the late 1990s.

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Lukoil Says Ivory Coast Offshore Well Has Oil Presence 2013-12-31 12:15:00.788 GMT

By Stephen Bierman Dec. 31 (Bloomberg) -- Data from Independence field well on block CI-401 to be evaluated; decision on further field appraisal to be made after data study, co. says in e-mailed statement. * Next phase of drilling program to include exploration well at offshore block CI-101 * NOTE: Lukoil operates CI-401, CI-101 with 57% stake, PanAtlantic holds 28%, Petroci Holding 15%

Link to Company News:{LKOH RM <Equity> CN <GO>} Link to Company News:{3005585Z BH <Equity> CN <GO>}

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

To contact the reporter on this story: Stephen Bierman in Moscow at +7-495-771-7745 or sbierman1@bloomberg.net

To contact the editor responsible for this story: Benjamin Dow at +7-495-771-7735 or bdow2@bloomberg.net