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German Coalition Reaches Deal but Faces Tough Party Vote

Polls Show Left-Leaning Social Democrats Barely Support Alliance With Merkel's Conservative Party

BERLIN—Germany's biggest political parties agreed early Wednesday on a deal to forge a coalition government led by Chancellor Angela Merkel.

After 17 hours of negotiations, Ms. Merkel's conservative Christian Democratic Union, its Bavarian Christian Social Union sister party and the Social Democrats agreed to introduce a national minimum wage and toughen labor market rules, as well as boost spending on pensions, education and infrastructure.

Enlarge Image

Chairman of the German Christian Social Union party, Horst Seehofer, and Angela Merkel arrive for coalition talks, in Berlin on Tuesday. European Pressphoto Agency

But the real nail-biter comes next: an unusual mail-in referendum that gives the 470,000 members of the left-leaning Social Democrats, or SPD, an up-or-down vote on whether to approve the coalition agreement.

Approval of the deal in the referendum, with results to be announced around Dec. 14, would nudge Germany and Ms. Merkel to the left on a few economic and social issues, while the country's fiscal conservatism would be largely maintained at home and in its response to the euro crisis.

Parliament would officially elect Ms. Merkel to her third term as chancellor soon after.

But if the referendum fails—an outcome a number of political analysts consider possible given the discontent among the SPD rank and file—German politics would be in for one of its most turbulent phases of the past two decades.

Ms. Merkel would then have three options: strike an unprecedented coalition agreement with the center-left Greens; form a minority government in which she would have to haggle for opposition support for every bill; or hold new elections that could catapult an upstart anti-euro party into parliament.

SPD leaders, who promised the referendum to persuade their members to enter coalition talks in the first place, will campaign intensively next week to try to win the vote. A poll by research firm YouGov for the tabloid Bild last week said SPD voters barely favored a coalition, with 49% voicing support and 44% opposed to one.

The career of SPD leader Sigmar Gabriel will be on the line, with a political exit possible if the referendum is lost, and a prominent government post and chancellor candidacy likely if it is won.

After a stinging defeat in the Sept. 22 federal election, many members wanted the Social Democrats to stay in the opposition and rebuild the party for their next chance in 2017. But the outcome of the election, in which Ms. Merkel's old governing partner, the Free Democrats, lost all of their seats in parliament, made a "grand coalition" between her conservative Christian Democrats and the Social Democrats the most viable option. SPD leaders, given postwar tradition of stable majority governments, had virtually no choice but to find a way to go along.

Wednesday's deal comes after a month of negotiations to form Chancellor Merkel's third government, which will have a two-thirds majority in the lower house of parliament. The coalition treaty is expected to be presented later Wednesday.

Before the deal, critics said the planned national minimum wage, the option for early retirement at age 63 and making temporary work more difficult will roll back some of the country's most successful labor-market overhauls of recent years which helped turn Germany into Europe's growth engine. Ms. Merkel's previous grand coalition had raised the retirement age to 67.

Asian Market Update: Japan airlines operate across China's "air identification zone" without incident; Germany forges "grand coalition" with center-left SPD

***Observations/Insights*** - Japan Airlines and All Nippon Airways flew across the China-declared "air identification zone" without a hitch; Japan and US foreign ministers vowed tight cooperation following China announcement, while the US Air Force had also reportedly flew its B-52s over the East China Sea. - Euro rose to 1-month high against USD and 4-year high vs JPY amid reports German Chancellor Merkel's CSU/CDU finally reached a deal with the center-left SPD to form a grand coalition. Earlier in the day, reports affirmed earlier speculation that the ruling parties will no longer oppose minimum wage reform in Germany. - Several large cities in China announce regulators are raising downpayment requirements to purchase a 2nd home to as high as 70%. - Australia low-rate policy reflected in another improvement in the quarterly housing affordability survey. - BOJ board member Shirai - one of the dissenters profiled in yesterday's release of BOJ policy meeting minutes - reiterated some further focus must be given to downside risks on inflation and economic objectives.

***Economic Data*** - (NZ) NEW ZEALAND OCT TRADE BALANCE (NZ$): -168M v -350Me (4th consecutive trade deficit) - (AU) AUSTRALIA Q3 CONSTRUCTION WORK DONE Q/Q: 2.7% V 0.5%E (6-quarter high) - (AU) AUSTRALIA Q3 CBA/HIA HOUSE AFFORDABILITY: 75.1 V 72.8 PRIOR - (KR) SOUTH KOREA DEC BUSINESS SURVEY MANUFACTURING: 78 V 83 PRIOR (4-month low); BUSINESS SURVEY NON-MANUFACTURING: 72 V 70 PRIOR - (TH) THAILAND OCT TRADE BALANCE: -$1.8B v +$1.8BE

***Fixed Income/Commodities/Currencies*** - (US) API PETROLEUM INVENTORIES: CRUDE: +6.92M (9th consecutive build and largest build since June) v +0.5Me; GASOLINE: +0.2M v +0.5Me; DISTILLATE: -1.7M v -1Me - (JP) BOJ offers to buy ¥400B in 5-10yr JGBs and ¥200B in JGBs with maturity over 10-yr - (AU) Australia MoF (AOFM) sells A$800M in 4.5% 2020 Notes; avg yield: 3.7061%; bid-to-cover: 4.29x

- USD/CNY: (CN) PBoC sets yuan mid point at 6.1330 v 6.1357 prior setting (strongest yuan setting since Nov 19th) - EUR/USD tested 4-week highs above $1.36; EUR/JPY: Rises to 4-year highs above ¥138 handle; NZD/USD briefly retests $0.82 following lower than expected trade deficit.

***Speakers/Political/In the Papers*** - (CN) According to Platts, China Oct oil demand rose 0.9% y/y to 9.83M bpd - (CN) China Iron and Steel Association (CISA): sees FY14 crude steel production around 800Mt v 790Mt forecast for 2013 - (CN) China Qinhuangdao coal stockpile at 4.75Mt, deceased 700Kt in a week; Coal stockpile at 2-yr low - (CN) China may issue new policies to allow more companies to have fuel import rights in near term - Chinese press - (CN) China's City of Hangzhou, Nanjing, Xiamen said to have adjusted down payment requirement for 2nd homes; To require at least 70% - financial press

- (JP) BOJ board member Shirai: must be aware of downside risks to prices and economy - (JP) Japan Foreign Min Kishida and US State Sec Kerry held talks yesterday; Intend to cooperate closely on China "air defense identification" zone announcement - Kyodo

- (AU) Australia Bureau of Resources and Energy Economics (BREE): Number of major resource investment projects fell to 63 in Oct from 73 in Apr; Sees potential for a rebound in resource/energy investment in 2015 - financial press

- (KR) Bank of Korea (BOK): Rising KRW/JPY may harm domestic exporters profit; Exporters concerned about China slowdown - Quarterly Golden book - (KR) South Korea MOF denies speculation it has requested that the BOK cut its key rate - financial press

- (DE) Chancellor Merkel's CDU and SPD said to have reached an accord for 'grand coalition'- US financial press - (IT) Italy PM Letta survives confidence vote on the budget in the Senate - financial press

***Equities*** Market Snapshot (as of 04:30 GMT): - Nikkei225 -0.3%, S&P/ASX -0.3%, Kospi -0.3%, Shanghai Composite +0.7%, Hang Seng +0.5%, Dec S&P500 flat at 1,802, Feb gold +0.4% at $1,246, Jan crude oil -0.2% at $93.49/brl

US markets: - DRTX: FDA approves priority review status of NDA for Dalvance; +8.4% afterhours - FWLT: Reportedly engineering consultancy AMEC Plc is considering a bid for Foster Wheeler - UK press; +7.6% afterhours - HPQ: Reports Q4 $1.01 v $1.01e, R$29.1B v $28.0Be; HPQ: CEO: still have a lot of work to do, but pleased with the progress we have made in first two years of turnaround plan - conf call; +5.4% afterhours - AVAV: Reports Q2 $0.14 v $0.07e, R$64.9M v $55.3Me; +4.0% afterhours - GNC: Announces $500M (9% of market cap) Share Repurchase Authorization, Term Loan increase and repricing; +1.4% afterhours

- RBS: UK Serious Fraud Office (SFO) may open a criminal investigation into the company - financial press; -1.2% afterhours - ADI: Reports Q4 $0.62 (adj) v $0.58e, R$678M v $689Me; -3.5% afterhours

Notable movers by sector: - Consumer discretionary: Chow Tai Fook Jewellery Group Ltd 1929.HK +2.1% (H1 results); Huabao International 336.HK +8.0% (H1 results); Panasonic Corporation 6752.JP +3.2% (to sell chip manufacturing plants) - Industrials: Shanghai Safbon Water Service Co Ltd 300262.CN +2.8% (awarded contract); GrainCorp GNC.AU +2.1% (ADM announces enhanced acquisition); Shanghai Tunnel Engineering Co Ltd 600820.CN +1.9% (awarded order) - Financials: Pacific Securities Co Ltd 601099.CN +10.1%, YunNan Metropolitan Real Estate Development Co Ltd 600239.CN +10.0%, Yunnan Tourism Co Ltd 002059.CN +5.7%, Yunnan Nantian Electronics Information Co Ltd 000948.CN +3.5% (speculation on Yunnan free trade zone); Sinolink Securities Co Ltd 600109.CN +6.7% (strategic alliance with Tencent) - Technology: Rakuten Inc 4755.JP +7.6% (to include in the Topix Index) - Energy: China Gas Holdings Ltd 384.HK +5.7% (H1 results) - Utilities: TEPCO 9501.JP +3.4% (earnings outlook for the next 10 years) - Telecom: China Mobile 941.HK +1.1% (to launch 4G services)

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PRN 11/27 01:27 Altice to acquire Orange Dominicana BN 11/27 01:39 *ALTICE DEAL INCLUDES CONTINUED USE OF ORANGE BRAND BN 11/27 01:38 *ALTICE DEAL TO BE SUBMITTED TO ORANGE BOARD IN DEC. 9 WEEK

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Altice to Buy Orange Dominicana for About $1.4 Billion 2013-11-27 01:33:29.393 GMT

By Colin Keatinge Nov. 27 (Bloomberg) -- Altice VII Sarl reached an agreement with Orange SA to purchase 100% of Orange Dominicana SA, the mobile operator in the Dominican Republic with 3.4 million subscribers, for approximately $1.4b.

Link to Statement:{NSN MWWEPS3MSFLS <GO>}

Link to Company News:{9803717Z LX <Equity> CN <GO>} Link to Company News:{ORA FP <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: Colin Keatinge at +65-6231-3479 or ckeatinge@bloomberg.net

Cameron launches attack on EU migration

David Cameron has announced a crackdown on European Union immigration, vowing to deport vagrants, restrict the right of foreign nationals to benefits and calling for new rules to stop "vast migrations". Writing in the Financial Times, Mr Cameron insists Europe has to reform "to regain the trust of its people", amid fears that unlimited migration is fuelling support for rightwing populist parties such as the UK Independence party. Britain has for decades been the biggest cheerleader for EU expansion and free movement, but it now wants to pull up the drawbridge with new rules to stop workers from poor countries moving to richer member states. With an eye fixed on future accessions in the Balkans and possibly Turkey, Mr Cameron demands "new arrangements that will slow full access to each others’ labour markets until we can be sure it will not cause vast migrations". He suggests imposing restrictions on movement until a country’s GDP per head reaches a certain share of the European average or allowing each country to set an annual cap on EU migrants. Mr Cameron will put the ideas at the heart of his proposed renegotiation of Britain’s relationship with the EU ahead of a planned referendum in 2017; he believes countries including Germany, Austria and the Netherlands could be supportive. In a sign of hardening British attitudes towards migration, Mr Cameron’s FT article was signed off by Nick Clegg, leader of the pro-European Liberal Democrats, who believes the proposed reforms are "sensible and reasonable". Mr Cameron’s initiative is intended to allay rising concern in Britain about the lifting of work restrictions on Romanian and Bulgarian migrants on January 1 across the EU. He says "things have gone wrong" under a system where 1m eastern Europeans settled in Britain after the last major round of EU enlargement in 2004 and blames the last Labour government for failing to address the issue. Amid media reports of intimidatory behaviour by Roma migrants in some British cities, Mr Cameron says Britain will deport European workers found begging or sleeping rough, barring them from re-entering the country for 12 months. A raft of measures will be introduced to restrict access to Britain’s welfare state, including a three-month qualification period for benefits, which would then only be payable for six months. European migrants only working in part-time jobs and falling below a certain income threshold would lose access to some benefits and newly arrived EU jobseekers would not be able to claim housing benefit. Downing Street claims that similar restrictions are already in place in some other European countries, including the Netherlands, and insists they are all consistent with EU law. But Mr Cameron’s aides expect "some grumbling" from the European Commission, which claims the UK has provided no evidence of "benefit tourism" by migrant workers and insists that arrivals make a net contribution to the British exchequer. The commission will also scrutinise the proposals to ensure they are not discriminatory, but there is an acceptance in Brussels that public concern about European migration is mounting across the 28-member bloc. Next May’s European elections are expected to see a big rise in support for rightwing parties, including Ukip, France’s National Front and other populist movements in countries like the Netherlands, Belgium and Finland.

Imaging a Sale of Given

Yesterday, it was reported in an Israeli financial journal that Given Imaging Ltd. (Nasdaq-GIVN) had resumed sale discussions (discontinued earlier this year) with an asking price of $700M-$750M (~$22-$24 per share). Previously, GIVN announced on 10/17/12 that it was "evaluating a range of strategic options", including non-binding preliminary indications of interest. Potential mentioned buyers included two large foreign electronics/images companies and a well-known U.S. pharmaceutical company; GIVN had high price expectations (up to $1B deal value). Three investors are now reported to be interested in the company (two strategic and one financial). Since the initial discussions talks were discontinued, major investor Discount Investment Corp. (XTAE-DISI), which controls 46% GIVN S/O, announced it wants to sell its 46% equity stake to raise capital for its debt restructuring (before a judge in the Tel Aviv court). GIVN closed at $22.63 (11/25/13), up 6.6% on over 5x normal trading volume; the stock hit a yearly high of $22.99 intraday.

We view the probability of a sale as much higher this time around; the likelihood is directly correlated to lowering the sale price range and a clear selling signal from GIVN’s major shareholder. We are normally wary of gossipy deal reporting, especially when it appears focused on ferreting out potential interest for a company considering a sale. However, in this situation, there is some specificity to support a reasonable plausibility that GIVN may be negotiating a transaction (rather than just rhapsodizing about its desire to maximize shareholder value). Another GIVN shareholder, Discovery Group (3.7% S/O and an investor since 2011), would like the company to use its $143M in cash/investments for a $50M buyback. The company is eligible to receive a one-time tax benefit this year from a reduced tax on trapped profits (10% vs. 25%) of $54M; the net amount could be used for a special dividend or a share buyback. In any case, the company has a number of options to distribute cash to shareholders; the reemergence of takeover chatter suggests that is the preferred method.

A strategic buyer should be able to pay the highest price for GIVN. We estimate that 7%-10% savings/synergies (on $213M revenues) added to $43M EBITDA (2014E) at a 10x multiple would imply a $22.70-$24.75/share takeover value (with $1.80-$2.00/share additional value for every EBITDA multiple). A 1.0-1.1 PEG of estimated 25% LT growth rate and $0.94 EPS (2014E) imply a $23.50-$25.85/share takeover value. The average GIVN closing price for the prior two and three months is $19.75 and $18.91, respectively; a $25/share deal value would reflect a ~25%-30% price premium to those average prices. A financial buyer would be stretching at a price of $22-$24/share, even with GIVN option holders rolling over their equity; the average GIVN option strike price was ~$20/share at the end of 2012. While a bidding contest is a possibility, we believe DISI’s need for cash (or at least a deal announcement by the end of 2013) will likely put a cap on GIVN getting a frothy deal price. Absent a transaction, we estimate a $17-$18/share fundamental value for GIVN (~18x-19x P/E multiple).

Like many other Israeli-based companies, GIVN has a strong technology component, which in its case is combined with improving a normally invasive medical procedure. The company’s capsule endoscopy system features a PillCam capsule endoscope (a miniaturized video camera inside a disposable capsule that is naturally ingested by the patient and delivers high quality color video images of the inside of the gastrointestinal tract); the procedure is relatively painless. On the other hand, the GIVN share performance over the past four years has been relatively discomforting; the stock price has peaked over $22 and dropped under $14 three times each. Recently, GIVN announced weak 1Q13 financial performance in early May; the share price traded from $16 to under $14 by mid-June. A July announcement that Japan approved the Pillcam for diagnosing colon diseases helped push the stock back above $16 by mid-August. The stock price has had a steady increase since then, mainly due to potential sale rumors (from DISI wanting to monetize its equity stake), the general strength in U.S.-listed Israeli stocks and an expected 4Q13 clearance by the U.S. FDA of the company’s Pillcam COLON (with sales beginning in 1Q14). Overall, while the first go-around seems to have been focused on an unreachable price expectation, this time around GIVN appears focused on a realistic outcome which should better facilitate a takeover transaction.  

Private equity hold $789bn in cash

Private equity groups are holding more cash for acquisitions than they had at the height of the leveraged buyout boom, in spite of a fall in the volume of deals being done – raising concerns about overcapacity in the industry. Data compiled by Preqin, the research group, show that the value of unspent commitments to private equity funds, known as "dry powder", has surged to $789bn this year – an increase of 12 per cent since December 2012, after four years of decline. This compares with $769bn of unspent cash in 2007 – when the volume of private equity deals reached a peak – and the $829bn that went unspent in 2008, when deal volumes plunged 70 per cent as the financial crisis unfolded. In 2007, private-equity houses led $776bn-worth of deals, but the comparable figure stands at just $310bn in 2013, according to Thomson Reuters. According to research by Hamilton Lane, a private equity investor that tracks 2,000 funds, this combination of increased fundraising and decreased deal volume could lead to a record level of dry powder by the year end. Buyout groups’ rising cash piles reflect the fact that they have taken longer to invest their funds since the crisis, as they have found fewer good opportunities. But the increase in the capital overhang has been largely fuelled by a renewed appetite for private equity funds from yield-starved institutional investors. After a steep contraction in the aftermath of the crash, buyout groups have been able to raise more money from investors, partly because they have found ways to return cash from previous vehicles – mostly through refinancings and initial public offerings. This has helped Advent International, Warburg Pincus, CVC Capital Partners, Carlyle and Silver Lake raise more than $10bn each for new funds. According to Mario Giannini, Hamilton Lane’s chief executive, 2013 is on course to become "the fourth biggest fundraising year" of all time for the private equity industry as investors are lured by its higher returns. Private equity funds have attracted $279bn so far this year, more than the whole of last year, Preqin has found. While this is still about 40 per cent less than in 2007 or 2008, private equity groups can also count on $200bn to $300bn of "unofficial" co-investment capital that backers have set aside to invest alongside their fund managers to save on fees, according to Mr Giannini. Buyout fund managers charge 2 per cent on the capital pledged to their funds on average. Some industry participants warn that the cash overhang will drive asset prices up as groups feel the pressure to invest the money before the commitments expire, typically after five years. "Prices are full in the US and in Europe for the good assets," said Bob Brown, the managing director in charge of investor relations at Advent. "There’s more credit financing available, fundraising has recovered, investors are willing to spend more in co-investments and most private equity firms are behind their investment schedules." However, Mr Giannini said the weak volume of deals demonstrated that groups were not yet rushing to put money to work. "There is overcapacity, but there’s also discipline today on using that capacity," he argued.

After Hours Summary: HPQ +6.8%, AVAV +5.5%, TIVO +0.3%, TLYS -23.6%, BLOX -18.2%, ADI -3.3%, GAME -1.5% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: HPQ +6.8%, AVAV +5.5%, TIVO +0.3%

Companies trading higher in after hours in reaction to news: DRTX -4.8% (announced FDA's acceptance for priority review of NDA for Dalvance (dalbavancin hydrochloride)), CROX+3.4% (hearing renewed rumors co is in talks with buyout firms; first mentioned by Bloomberg on Nov 13), GNC +1.4% (announced $500 mln share repurchase authorization; term loan increase and repricing), PROV +0.7% (announced new ~500k share stock repurchase plan)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: TLYS -23.6%, BLOX -18.2%, ADI -3.3%, GAME -1.5%

Companies trading lower in after hours in reaction to news: VELT -16.7% (announced voluntary delisting from NASDAQ), LIME -13.4% (Board terminated employment of CEO John O'Rourke, promotes Adam Procell to be CEO), CVV -9.4% (disclosed a customer has made an assignment for the benefit of creditors)

Closing Market Summary: Nasdaq Gains While S&P 500 Ends Flat

The S&P 500 added less than a point while the Nasdaq outperformed with again of 0.6%. Stocks saw a brief dip during the opening hour, but the relative strength of the tech-heavy Nasdaq was enough to encourage the S&P 500's deliberate, day-long climb. Similar to yesterday, a final-hour sell off knocked theindices off their highs, but unlike yesterday, the S&P managed to stay out of the red. The discretionary sector (+0.5%) led from opening bell as all-around strength underpinned the growth-sensitive group. Luxury retailers took a cue from Tiffany (TIF 88.05, +7.06), which soared 8.7% after beating on earnings andrevenue. Meanwhile, apparel retailers rallied after Men's Wearhouse (MW 50.60,+3.53) offered to acquire Jos. A. Bank (JOSB 56.29, +5.69) for $55 per share.

Homebuilders also provided a measure of support to the discretionary space following a set of better-than-expected housing data. The iShares Dow Jones USHome Construction ETF (ITB 23.33, +0.75) jumped 3.3%.

Elsewhere, momentum names played a part in today's advance. While several of these listings fall under the discretionary umbrella, the entire group contributed to the outperformance of the Nasdaq. Facebook (FB 45.89, +1.07), LinkedIn (LNKD 222.93, +6.31), and Priceline.com (PCLN 1177.98, +18.81) gainedbetween 1.6% and 2.9% while the top index component, Apple (AAPL 533.40,+9.66), rallied 1.8%. In turn, the technology sector (+0.4%) ended among the leaders. Outside of consumer discretionary and technology, the industrial sector (+0.6%) was the only other outperformer among cyclical groups. The sector received significant support from two of its top components as Boeing (BA134.78, +1.78) and General Electric (GE 26.78, +0.05) posted respective gains of 1.3% and 0.2% following yesterday's underperformance. Countercyclical groups trailed throughout the session, but only utilities(-1.0%) settled with a noteworthy loss. Consumer staples, health care, and telecom services ended with losses between 0.1% and 0.4%.

Treasuries settled near their highs as the 10-yr yield ticked down two basis points to 2.71%. More notably, the 5-yr yield shed four basis points to close at 1.30%, its lowest level in nearly a month. Intraday participation was on the light side, but volume surged during the final hour as MSCI global quarterly review contributed to the increase in activity. When the dust settled, just under 830 million shares changed hands on the floor of the NYSE. In today's economic data, building permit issuances increased in both September and October. Permits rose from 926,000 in August to 974,000 in September and 1.034 million in October. The consensus expected 932,000 building permit issuances for both September and October. The jump in October brought permits to their highest level since June 2008. Delays from the government shutdown continue to plague the residential construction data. Reports on housing starts were not submitted on time, and the Census Bureau decided to push back the starts release until December 18. At that time, September, October, and November starts will all be released.

Also of note, the September Case-Shiller 20-city Home Price Index rose 13.3% while a 13.0% increase had been expected by the consensus. This follows the previous month's revised increase of 12.8%. The September Housing Price Index from the FHFA increased 0.3%, which followed an uptick of 0.4% observed during the prior month. Separately, the November Consumer Confidence Index fell to 70.4 from an upwardly revised 72.4 (from 71.2) in October. The consensus pegged the index at 72.4. Confidence in October plummeted as concerns about the economy following the government shutdown weighed heavily on the minds of consumers. With the shutdown ending, it was expected that confidence would begin to improve. Even though normal indicators of confidence -- equity prices, gasoline costs, and labor conditions -- all generally strengthened in November, doubts about economic growth, likely stemming from the poor rollout of the Affordable Care Act, lowered consumer expectations. Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET while weekly initial claims and October durable goods will be released at 8:30 ET. The Chicago PMI for November will cross the wires at 9:45 ET while the final reading of the Michigan Consumer Sentiment Survey will be reported at 9:55 ET. The busy day will be topped off with the 10:00 ET release of October leading indicators.

o Russell 2000 +33.6% YTD o Nasdaq +33.1% YTD o S&P 500 +26.4% YTD o DJIA +22.7% YTD

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Generali Says ‘Surprised’ by S&P Credit Watch Negative Warning 2013-11-26 21:20:53.339 GMT

By John Simpson Nov. 26 (Bloomberg) -- Co. says its current situation “greatly improved” vs recent past. * Says latest 9 mos. results highest in past 5 yrs * Says it had solvency 1 ratio of 152% at end of Oct. and EU2.4b in divestments already implemented during yr * NOTE: Earlier, S&P Takes Rating Actions on EMEA Insurers On Criteria Revision NSN MWVTAQ6S972M <GO> * NOTE: Earlier, Generali Lack of Capital Slows Down Recovery, Bernstein Says NSN MWUYRA6KLVRQ <GO> Link to Statement: NSN MWW1VK6S972J <GO> Link to Company News:G IM <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: John Simpson at +1-416-203-5726 or jsimpson12@bloomberg.net

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BFW 11/26 20:09 *COX CONSIDERING BID FOR TIME WARNER CABLE, DJ SAYS

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Cox Considering Bid for Time Warner Cable, DJ Says 2013-11-26 20:10:38.14 GMT

By Joshua Fineman Nov. 26 (Bloomberg) -- Cox contemplating bid for Time Warner Cable either on its own or with others, DJ says, citing people familiar. Link to story: {NSN MWW0E4AIBMDD <go>} Link to Company News:{AAA NA <Equity> CN <GO>} Link to Company News:{1026Z US <Equity> CN <GO>} Link to Company News:{CHTR US <Equity> CN <GO>} Link to Company News:{CMCSA US <Equity> CN <GO>} Link to Company News:{TWC 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: Joshua Fineman at +1-212-617-8953 or jfineman@bloomberg.net