TheChek News Flow

Ups

*ABERDEEN ASSET RAISED TO NEUTRAL VS UNDERPERFORM AT BOFAML *KCOM RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN *LAYNE CHRISTENSEN RAISED TO NEUTRAL VS SELL AT UBS *METRO RAISED TO OVERWEIGHT AT BARCLAYS *PIERRE & VACANCES RAISED TO BUY VS HOLD AT SOCGEN *WH SMITH RAISED TO OVERWEIGHT VS UNDERWEIGHT AT JPMORGAN

Down

*BANCO POPOLARE CUT TO HOLD VS ADD AT BANCA IMI *DAISY CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN *DANSKE BANK CUT TO SELL VS HOLD AT SOCGEN *DEUTSCHE POST CUT TO NEUTRAL VS BUY AT BOFAML *GSW IMMOBILIEN CUT TO SELL VS HOLD AT BANKHAUS LAMPE *INDITEX CUT TO NEUTRAL VS BUY AT BOFAML *INTERTEK CUT TO UNDERPERFORM VS SECTOR PERFORM AT RBC *NORDEA CUT TO HOLD VS BUY AT SOCGEN *WIRECARD CUT TO EQUALWEIGHT FROM OVERWEIGHT AT BARCLAYS

PT Change

*KBC ANCORA PT RAISED TO EU33.20 FROM EU22.80 AT ING *PIRELLI PT RAISED TO EU13 VS EU12 AT UBS; KEPT AT BUY *SWATCH PT RAISED TO CHF650 VS CHF600 AT CANTOR; KEPT AT BUY

Initiation

*BARRATT DEVELOPMENTS RATED NEW OVERWEIGHT AT BARCLAYS *BELLWAY RATED NEW UNDERWEIGHT AT BARCLAYS; PT 1498.1P *BERKELEY GRP RATED NEW EQUALWEIGHT AT BARCLAYS; PT 2454.7P *BOVIS HOMES RATED NEW UNDERWEIGHT AT BARCLAYS; PT 778.1P *EMPERIA RATED NEW BUY AT ING *GALLIFORD TRY RATED NEW EQUALWEIGHT AT BARCLAYS; PT 1200.1P *PERSIMMON RATED NEW EQUALWEIGHT AT BARCLAYS; PT 1260.4P *REDROW RATED NEW OVERWEIGHT AT BARCLAYS; PT 356.0P *ROYAL MAIL RATED NEW SECTOR PERFORM AT RBC, PT 580P *ROYAL MAIL RATED NEW SELL AT UBS, PT 450P *ROYAL MAIL RATED NEW NEUTRAL AT BOFAML; PT 580P *ROYAL MAIL RATED NEW EQUALWEIGHT AT BARCLAYS; PT 466P *TAYLOR WIMPEY RATED NEW OVERWEIGHT AT BARCLAYS; PT 146.8P

Country Sector Stock Call

*ENKA INSAAT CUT FROM UBS’S EMEA MOST PREFERRED LIST

Asian Market Update: Japan posts its 3rd largest trade deficit as energy import costs mount; Bernanke maintaining dovish stance

***Observations/Insights*** - Japan trade deficit spikes to its highest level on record for October and also the 3rd highest monthly deficit overall; Exports are up 18.6%, but imports outpaced outbound shipments with a 26% increase - 12th consecutive rise and the highest rate since June 2010. Exports to US, China, and Europe are up over 20%, however Japan remains hamstrung by high energy costs. Crude oil imports were up 68%, with weak JPY and continued reliance on foreign oil exacerbated by continued shutdown of its nuclear industry. - China conference board leading index at a 3-month low; Resident economist noted growth slowed due to weak real estate activity, only partly offset by an improved outlook for manufacturing production and exports. Recall overnight, PBoC announced it would end FX interventions, establishing a managed float rate and expanding a daily trading band. - Out of Australia, Westpac leading index improved slightly; Bank economist said the recent above-trend growth in the Index is pointing to a much better outcome over the next few quarters, with forecasts accounting for an unusually significant drag from the downturn in mining investment. Notably, BHP CEO expressed confidence that the early indications from the Chinese government's recent economic policy summit were positive for Australia and its mining industry, suggesting demand for natural resources may prove to be stronger than currently believed. - Outgoing Fed chief Bernanke struck a familiar dovish tone, reiterating that interest rates may remain near zero for considerable time after bond buys end, and possibly well after unemployment declines to less than 6.5%. Bernanke also continued to imply that the Fed remains extremely data-dependent without a clear outlook for the start of the taper, noting the FOMC would only start to slow bond buys if labor market and inflation align with its projections.

***Economic Data*** - (CN) CHINA OCT CONFERENCE BOARD LEADING ECONOMIC INDEX M/M: 0.6% V 1.1% PRIOR (3-month low) - (JP) JAPAN OCT MERCHANDISE TRADE BALANCE: -¥1.09T V -¥854BE (record 16th consecutive deficit); ADJUSTED MERCHANDISE TRADE BALANCE: -¥1.07T V -¥875BE - (JP) JAPAN SEPT ALL INDUSTRY ACTIVITY INDEX M/M: 0.4% V 0.4%E - (AU) AUSTRALIA SEPT WESTPAC LEADING INDEX M/M: +0.1% V -0.1% PRIOR - (AU) AUSTRALIA OCT DEWR SKILLED VACANCIES M/M: -0.1% V -0.3% PRIOR - (NZ) NEW ZEALAND Q3 PPI INPUT: 2.2% V 0.6% PRIOR (2 1/2 year high); PPI OUTPUT: 2.4% V 1.0% PRIOR (5-year high) - (KR) SOUTH KOREA Q3 SHORT-TERM EXTERNAL DEBT: $111.5B V $119.6B PRIOR

- (US) NORTH AMERICA OCT SEMI BOOK/BILL RATIO: 1.05 V 0.97 PRIOR (above parity for the first time in 3 months; first sequential increase in 4 months) - (CL) CHILE CENTRAL BANK CUTS OVERNIGHT RATE TARGET BY 25BPS TO 4.50%, AS EXPECTED

***Fixed Income/Commodities/Currencies*** - (CN) China MoF auctions 10-yr bonds, Avg yield 4.7121% (highest yield in 9 years) - (JP) BOJ offers to buy ¥250B in 1-3 yr JGBs, ¥350B in 3-5yr JGBs, and ¥200B JGB with maturity over 10-yr

- GLD: SPDR Gold Trust ETF daily holdings fall 1.5 tonnes to 863.0 tonnes (lowest since Feb 2009) - (US) API PETROLEUM INVENTORIES: CRUDE: +510K v +1Me (lowest build in 8 weeks)

- USD/CNY: (CN) PBoC sets yuan mid point at 6.1305 v 6.1317 prior setting (record high setting for Yuan)

- USD saw some brief weakness against its major counterparts following a fairly dovish set of comments from Bernanke but has since reversed course in the afternoon session. USD/JPY fell 30pips below ¥100 and EUR/USD spiked up 40pips toward $1.3580 before retreating to $1.3550. AUD/USD and NZD/USD are being sold more heavily in the afternoon, with the former down 50pips from the highs below $0.94 and the latter off by 60pips from the highs around $0.8330.

***Speakers/Political/In the Papers*** - (CN) China National Development and Reform Commission (NDRC): China H1 industrial capacity utilization rate 78% (lowest since late 2009) - (CN) PBoC deputy gov Hu: To increase 2-way floating flexibility of yuan rate and also phase out investment caps on foreign/domestic investors; China should provide appropriate liquidity into economy - financial press - (CN) Fitch: China new reform could have positive impact on local govt credit ratings

- (JP) Japan Reform Panel to recommend GPIF should invest in inflation-linked JGBs - financial press - (JP) Japan Finance Ministry panel (FSC) to recommend end to farm protection at Nov end; vt panel will propose an end to protection measures for farmers as part of plans to increase competitiveness of Japan's agriculture and entry into the Trans-Pacific Partnership (TPP) free trade agreement - Kyodo News

- (AU) RBA Dep Gov Debelle: Regulation aims to ensure risk remains priced into market- CIFR Forum speech - (AU) Australia Treasury official Gruen: mining investment is slowed by high AUD

- (KR) Bank of Korea Gov Kim: Inflation lower than expected

- (US) Fed Chairman Bernanke: Rates may remain near zero for considerable time after bond buys end, and possible well after unemployment declines to less than 6.5% - National Economists Club speech - (CA) BoC Dep Gov Murray: Market forces pushing prices and exchange rates in right direction

- (EU) Moody's: Sees 2014 Euro Area GDP at 0.5-1.5%; 2013 GDP at -1% to flat

***Equities*** Market Snapshot (as of 03:30 GMT): - Nikkei225 -0.1%, S&P/ASX -0.8%, Kospi -0.5%, Shanghai Composite -0.1%, Hang Seng +0.3%, Dec S&P500 -0.2% at 1,788, Dec gold +0.1% at $1,274, Dec crude oil +0.3% at $93.62/brl

US markets: - LZB: Reports Q2 $0.32 v $0.26e, R$366.4M v $350Me; Raises quarterly dividend by 50% to $0.06/shr from $0.04/shr; +8.4% afterhours - YHOO: Announces share repurchase authorisation by $5B (14% of market cap); proposes to offer $1.0B (2.7% of market cap) aggregate principal amount of its convertible senior notes due 2018; +2.8% afterhours - NHI: To acquire 25 Independent Living Facilities from Affiliate of Holiday Retirement for $491M; -1.7% afterhours

Notable movers by sector: - Consumer discretionary: Oriental Press Group 18.HK -7.0% (issues profit warning); Kathmandu Holdings Ltd KMD.AU -2.9% (Q1 outlook in AGM) - Consumer staples: Wanjia Group Holdings Ltd 401.HK +4.2% (signs MOU on marketing channels) - Industrials: Suzuki Motor Corp 7269.JP +0.7% (new vehicles plans); Virgin Australia VAH.AU -2.6% (comments on capital raising) - Materials: Anhui Jingcheng Copper Share Co Ltd 002171.CN +1.3%, Xinyi Glass Holding Co Ltd 868.HK +1.6% (plans for private banking); Drillsearch Energy Ltd DLS.AU +4.0% (operations update); - Financials: Shenyin Wanguo 218.HK +4.4% (confirms plan for merger); Tibet Urban Development and Investment Co Ltd 600773.CN +7.3% (investment plans) - Technology: Digital China 861.HK -8.0% (Q2 results); AU Optronics Corp 2409.TW +1.8% (secures loan); Sony Corp 6758.JP -0.9% (comments on PS4); Sharp Corp 6753.JP +6.8% (partners with Hewlett-Packard) - Telecom: China Mobile 941.HK -0.9% (Oct metrics)

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ONE 11/20 05:00 Zodiac Aerospace: another year of growth BN 11/20 05:03 *ZODIAC TO PROPOSE FIVE-FOR-ONE STOCK SPLIT BN 11/20 05:02 *ZODIAC SAYS AERONAUTICS ENVIRONMENT REMAINS BUOYANT BN 11/20 05:02 *ZODIAC PREDICTS ORGANIC GROWTH IN 2013/2014 BN 11/20 05:02 *ZODIAC TO PAY DIV OF EU1.60 A SHARE BN 11/20 05:02 *ZODIAC FY NET UP 16% TO EU370.9M BN 11/20 05:01 *ZODIAC FY SALES EU3.89B BN 11/20 05:01 *ZODIAC FY SALES UP 13% BN 11/20 05:00 *ZODIAC AEROSPACE SALES REV INCREASED BY +13.1% BN 11/20 05:00 *ZODIAC AEROSPACE: ANOTHER YR OF GROWTH

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Zodiac Predicts 2013-14 Organic Growth in ‘Buoyant’ Environment 2013-11-20 05:09:30.492 GMT

By David Whitehouse Nov. 20 (Bloomberg) -- Full-year 2012-13 net of EU370.9M compares with them average analyst estimate of EU355.5M. * Co. to propose dividend of EU1.60 a share * Sales rose a reported 13% to EU3.89B, up 7.3% on a like for like basis * Co. says global air traffic is increasing * Co plans five-for-one stock split.

Link to Statement:{NSN MWJPWR3V2801 <GO>} Link to Company News:{ZC FP <Equity> CN <GO>}

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To contact the editor responsible for this story: David Whitehouse at +33-1-5365-5059 or dwhitehouse1@bloomberg.net

After Hours Summary: LZB +7.9%, STV +5.3%, CHLN -15.8%, QUNR -5.8%, MODN -3.0%, HLS -0.3% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: LZB +7.9%, STV +5.3%

Companies trading higher in after hours in reaction to news: HNR +24.2% (announced revised $400 mln proposal from Pluspetrol for co's interest in Venezuela; termination of negotiations with Vitol), BMRN +4.2% (confirmed FDA Advisory Commitee recommended approval for Vimizim for the treatment of patients with Morquio A syndrome), HLF +2.6% (William P. Stiritz, Chairman of Post Foods (POST), disclosed 6.38% active stake in 13D filing; plans to interact with company management), YHOO +2.1% (increased share buyback authorization by $5 bln), BSX +1.9% (received FDA clearance and CE Mark approval for its Direxion Torqueable Microcatheter),

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: CHLN -15.8%, QUNR -5.8%, MODN -3.0%, HLS -0.3%

Companies trading lower in after hours in reaction to news: AEZS -19.5% (announced proposed public offering of common shares and warrants, size not disclosed), NWBO -12.9% (announced public offering of common stock and warrants, size not disclosed), SSW -5.6% (co plans to offer 3.5 mln Class A common shares in a registered public offering), CRNT -3.5% (announced proposed public offering of common stock, size not disclosed), GOOD -2.6% (co plans to sell shares of its common stock in an underwritten public offering)

Closing Market Summary: Nasdaq Leads Stocks Lower

Equities posted modest losses, ending near their lows, with the tech-heavy Nasdaq shedding 0.4% to pace the decline. The S&P 500 slipped 0.2% while the Dow Jones Industrial Average edged down 0.1%. Stocks displayed some strength during the opening hour as an early bid catapulted the Dow above the 16,000 level for the second day in a row. The early gain in the Dow was aided by Home Depot (HD 80.38, +0.71), which reported better-than-expected earnings while raising its full-year guidance above analyst expectations. The price-weighted index also received significant support from Chevron (CVX 122.06, +1.50) and Goldman Sachs (GS 166.60, +0.92) while their respective sectors—energy (+0.2%) and financials (+0.2%)—ended in the lead. However, the rally fizzled out as the underperformance of industrials (-0.7%) weighed. The sector ended behind the remaining cyclical groups with truckers and railroads pressuring the Dow Jones Transportation Average to a loss of 1.0%. Airlines withstood the bulk of the selling as United Continental (UAL 37.80, +1.42) surged 3.9% after announcing plans to cut costs by $2 billion per year.

Elsewhere, the discretionary sector (-0.4%) lagged as the outperformance of Home Depot was not enough to offset the losses among apparel retailers. Meanwhile, electronics retailer Best Buy (BBY 38.78, -4.78) endured a rough session, tumbling 11.0% after the company said it will aim to match or beat its competition at the expense of maximum profitability during the holiday quarter. Similar to yesterday, the Nasdaq registered a larger decline than the broader market as chipmakers displayed broad weakness. The PHLX Semiconductor Index lost 1.3%. Momentum names were mixed as Priceline.com (PCLN 1118.42, -9.51) lost 0.8% while Tesla (TSLA 126.09, +4.51) gained 3.7%, rebounding from yesterday's 10.2% loss. Today's bid took place after the stock had suffered a 37.0% drop off its October 1 high, and despite the National Highway Traffic Safety Administration announcing it will investigate the Model S after three vehicles caught fire after striking roadside debris. With regard to countercyclical groups, health care (+0.1%) and telecom services (+0.1%) outperformed while consumer staples (-0.4%) and utilities (-0.7%) lagged. Notably, the staples sector was pressured by Campbell Soup (CPB 39.20, -2.61), which plunged 6.2% after missing earnings estimates by 23 cents and issuing disappointing guidance. Treasuries finished near their lows with the benchmark 10-yr yield up four basis points at 2.71%. Participation was on the light side as 646 million shares changed hands on the floor of the New York Stock Exchange. Today's economic data was limited to the third quarter employment cost index, which increased 0.4%, down from a 0.5% increase in the second quarter. The consensus expected the index to increase 0.5%. Year-over-year, compensation increased 1.9%. Wages and salaries increased 0.3% in the third quarter. That is down from a 0.4% increase in the second quarter and the weakest gain since increasing by the same amount in Q4 2012. Tomorrow will be busy in terms of economic data with the MBA Mortgage Index and October retail sales set to be reported at 7:00 ET and 8:30 ET, respectively. October CPI will also be reported at 8:30 ET while September business inventories and October existing home sales will be released at 10:00 ET. The day will be topped off with the 14:00 ET release of the FOMC Minutes from the October meeting.

o Nasdaq +30.2% YTD o Russell 2000 +29.7% YTD o S&P 500 +25.4% YTD o DJIA +21.9% YTD

GMO QUARTERLY LETTER November 2013

U.S. Equity Market Overvalued!

Our methodology recent client that conference we are extending saw the to unveiling all of the of other our new equity forecast asset classes methodology that we for forecast. the U.S. It stock is the market, result of a a three-year research collaboration by our asset allocation and global equity teams, and involved work by a large number of people, although Martin Tarlie of our global equity team did a disproportionate amount of the heavy lifting. In a number of ways it is a "clean sheet of paper" look at forecasting equities, and we have broadened our valuation approach from looking at valuations through the lens of sales to incorporating several other methods. It results in about a 0.7%/year increase in our forecast for the S&P 500 relative to the old model. On the old model, fair value for the S&P 500 was about 1020 and the expected return for the next seven years was -2.0% after in flation. On the new model, fair value for the S&P 500 is about 1100 and the expected return is -1.3% per year for the next seven years after inflation. For those interested in the broader U.S. stock market, our forecast for the Wilshire 5000 is a bit worse, at -2.0%, due to the fact that small cap valuations are even more elevated than those for large caps. So much for 36 months of work. One could say that we didn’t know that we would wind up with the same basic forecast we started with, and that is true, but on the other hand we didn’t have any particularly large concerns that our forecast was giving us the wrong answer in the first place. This makes the S&P 500 forecast signi ficantly different from the emerging equity forecast, where, as we have been telling our clients for a while, we believed that our forecasting methodology overstated the attractiveness of the group. Our revised emerging forecast is noticeably lower than that generated by the old model, and clients are welcome to contact their relationship manager for more information about this change if they would like. What was the point of doing all of this work on the S&P 500 forecast if we were pretty con fident that the old model was doing its job well? There were several reasons. First, we are always trying to improve our forecast methods, and this was merely a larger project than a number of others we’ve tackled over the past 20 years in this area. Second, we want our process to adhere as closely as possible to our basic beliefs that stocks should sell at replacement cost and that the return on capital and cost of capital need to be in equilibrium in the long run. And third, we want a process that makes it as straightforward as possible to slice the equity markets in a different way and still be con fident in the resulting forecast. On both the second and third points, we believe the new methodology is superior to the old. The primary issue with turning our beliefs into forecasts is that the key input to valuing the market is an unobservable item: economic capital. Economic capital – aka replacement cost – is central because it is the "thing" that generates earnings. Book value of common equity is the accounting figure that is supposed to approximate this term, but it is subject to multiple distortions that make it a clearly inadequate proxy for true equity capital. One way of seeing this is to simply look at ROE – that is, return on book value of equity – over time. In the U.S., the average ROE for the S&P 500 has been 13% since 1970, as we can see in Exhibit 1. Full document attached...

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Vodafone May Be a Target for AT&T, SoftBank or AMX, Citi Says 2013-11-19 16:23:07.331 GMT

By Sam Chambers Nov. 19 (Bloomberg) -- AT&T’s potential interest in Vodafone would be based on expectation that the European economic cycle, telco regulatory cycle and network cycle are all at or near the bottom, Citi says. * Says in event of a deal, benefits to AT&T may be constrained by tax hurdles arising from repatriation of cash from different European countries * NOTE: Nov. 6, AT&T may offer healthy premium for VOD, Bernstein said * SoftBank is seeking scale and VOD’s large 2.6GHz spectrum holding could let it cut costs on devices and equipment, Citi says * After its failed attempt to buy KPN outright, America Movil may be interested in VOD’s Indian, eastern European assets, Citi says * Says AMX may consider partnership with AT&T in a potential takeover, buying some of VOD’s developing-mkt assets and making financing more manageable for AT&T * Without a bid, downside to VOD is limited and co.’s topline growth is likely to improve dramatically over next 12 months: Citi * Reiterates buy rating on shrs and increases its PT by 11% to 260p, a 12% premium to current share price * NOTE: Citi is one of VOD’s house brokers

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--Editor: Jim Silver

To contact the reporter on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net

To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net

Metro AG Notes that it has not made any formal decision regarding its stock listing of Cash & Carry Russia unit - financial press

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BN 11/19 15:49 *SLIM SPOKESMAN ELIAS COMMENTS IN E-MAIL BN 11/19 15:49 *SLIM SPOKESMAN DENIES REPORT OF TALKS WITH PEMEX ON REPSOL

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Slim Spokesman Denies Report of Talks With Pemex on Repsol 2013-11-19 15:59:42.452 GMT

By Crayton Harrison Nov. 19 (Bloomberg) -- Arturo Elias, Slim’s spokesman, comments in e-mail. * NOTE: Madrid-based ABC newspaper reported today that Pemex seeks alliance with Slim to buy additional stake in Repsol, without saying where it got the information.

Link to Company News:{1232Z MM <Equity> CN <GO>} Link to Company News:{REP SM <Equity> CN <GO>}

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To contact the editor responsible for this story: Crayton Harrison at +1-212-617-6145 or tharrison5@bloomberg.net

Procter & Gamble Reaffirms FY14 guidance EPS +5-7% (implies $4.05-4.13 v $4.29e), Rev (incl fx impact) +3-4% (implies $84.6-85.4B v $85.7Be)