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*AKZO RAISED FROM NEUTRAL AT JPMORGAN *BABCOCK INTERNATIONAL RAISED FROM NEUTRAL AT GOLDMAN, CONVICTION BUY *KLEPIERRE RAISED TO OUTPERFORM VS NEUTRAL AT EXANE *PENNON GROUP RAISED TO OVERWEIGHT VS NEUTRAL AT HSBC *SSAB RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY

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*A2A CUT TO HOLD VS BUY AT KEPLER CHEUVREUX *BENETEAU CUT TO UNDERPERFORM VS NEUTRAL AT EXANE *CGG CUT TO HOLD VS BUY AT KEPLER CHEUVREUX *INMARSAT CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS *PROSIEBEN CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS *SHANKS GROUP CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE

PT changes

*Credit Agricole PT Raised to EU9 vs EU8.5 at Mediobanca *DELHAIZE PT CUT TO EU50.50 FROM EU53 AT ING *ENEL PT RAISED TO EU3.7 VS EU3.2 AT UBS; KEPT AT BUY *Pirelli PT Raised to EU13.5 vs EU12 at JPMorgan *SocGen PT Raised to EU40.3 vs EU35.6 at Mediobanca *SORIN PT RAISED TO EU2.5 VS EU2.4 AT BERENBERG; KEPT AT BUY

Initiation

*BETFAIR RATED NEW OVERWEIGHT AT HSBC; PT 1,245P *GRAND CITY PROPERTIES RATED NEW BUY AT BERENBERG; PT EU7.5 *LADBROKES RATED NEW NEUTRAL AT HSBC; PT 200P *PEUGEOT RATED NEW REDUCE AT NOMURA; PT EU8 *RENAULT RATED NEW NEUTRAL AT NOMURA; PT EU68 *WILLIAM HILL RATED NEW UNDERWEIGHT AT HSBC; PT 385P

Country Sector Stock Call

*BABCOCK INTERNATIONAL RAISED TO CONVICTION BUY AT GOLDMAN *EUROPEAN AUTOS & AUTO PARTS CUT TO BEARISH FROM NEUTRAL AT NOMURA *European Equities Underpriced, May Return 27% in 2014: Barclays

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BFW 11/08 06:06 *FRANCE CUT TO AA FROM AA+ AT S&P; OUTLOOK STABLE FROM NEGATIVE BN 11/08 06:06 *FRANCE CUT TO AA FROM AA+ AT S&P; OUTLOOK STABLE FROM NEGATIVE BFW 11/08 06:04 *FRANCE DOWNGRADED TO AA FROM AA+ AT S&P; OUTLOOK STABLE BN 11/08 06:00 *FRANCE RATED AA WITH STABLE OUTLOOK AT S&P

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MORE: France Downgraded to AA From AA+ at S&P; Outlook Stable 2013-11-08 06:16:00.171 GMT

By Tom Kohn and Colin Keatinge Nov. 8 (Bloomberg) -- Ratings co. comments in statement. * Cites French govt reform of tax, labor markets, products and services won’t raise French medium-term growth prospects * Lower economic growth is constraining public finances * Outlook stable, reflecting probabilities of higher or lower rating in next 2 years (less than 1 in 3) * Affirmed A-1+ short-term ratings * Statement: NSN MVXL4R3PWT1D <GO>

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

--Editor: Tom Kohn

To contact the reporter on this story: Tom Kohn in Frankfurt at +49-69-92041-283 or tkohn@bloomberg.net

To contact the editor responsible for this story: Tom Kohn at +49-69-92041-283 or tkohn@bloomberg.net

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Alcatel-Lucent Added, Vedanta Cut From MSCI Regional Indexes 2013-11-07 23:02:55.928 GMT

By Lisa Pham Nov. 8 (Bloomberg) -- Changes effective close of Nov. 26. * Austria: Verbund cut * Finland: Kesko B cut * France: Alcatel-Lucent, Valeo added * Germany: RTL Group, Sky Deutschland added; RWE Vorzug cut * Greece: Alpha Bank, Piraeus Bank, Folli Follie, Hellenic Petroleum, Jumbo, National Bank of Greece, Public Power Corp., Titan Cement added * Hungary: Richter Gedeon added; Magyar Telekom cut * Morocco: Attijariwafa Bank, Douja Promotion Groupe, Maroc Telecom cut * Russia: Moscow Exchange added; Inter RAO, LSR Group, TMK cut * Spain: Acciona cut * Sweden: Ratos B cut * Switzerland: Banque Cantonale Vaudoise cut * Turkey: Ulker Biskuvi Sanayi added * UK: Vedanta Resources cut * Link to MSCI website

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

To contact the reporter on this story: Lisa Pham in Sydney at +61-2-9777-8681 or lpham14@bloomberg.net

To contact the editor responsible for this story: Jan Dahinten at +65-6212-1164 or jdahinten@bloomberg.net

Asian Market Update: China trade balance hits 10-month highs as exports improve; RBA quarterly statement lowers 2014 GDP forecast

***Observations/Insights*** - China October trade surplus rose to a 10-month high, bolstered by a much stronger than expected increase in exports just a month after a surprise contraction. Exports to US accelerated to 6.9% from 4.2%, while exports to Europe slowed to 0.5% from 1.1%. Imports of iron ore - a gauge of China's internal industrial health - rose 20% y/y but fell over 10% m/m. - RBA quarterly policy statement affirmed 2013 GDP at 2.25% but lowered its 2014 forecast to 2-3% range from 2.5-3.5% prior target. RBA also lowered its outlook for the first half of 2015 but maintained the full year at 2.75-4.25%. In terms of inflation, RBA raised its 2013 projections to 2.5% but cut 2015 to 2% midpoint. Unemployment was seen rising through the end of 2013 and throughout 2014 before starting to ease in 2015. - China money market tightened again following overnight decision not to inject liquidity in the system. China will release its inflation, retail sales, production, and new loans data for October over the weekend.

***Economic Data*** - (CN) CHINA OCT TRADE BALANCE: $31.1B V $24.8BE (10-month high); Exports Y/Y: +5.6% v 1.7%e; Imports Y/Y: 7.6% v 7.4%e - (JP) JAPAN OCT OFFICIAL RESERVE ASSETS: $1.28T V $1.27T PRIOR - (JP) Japan investors bought net ¥276.6B in foreign bonds last week (4th straight week of net purchases) vs bought net ¥1.04T in prior week; Foreign Investors bought net ¥247.B in Japan stocks v sold net ¥7.9B in prior week - (MY) MALAYSIA SEPT TRADE BALANCE (MYR): 8.7B V 6.5BE - (PE) PERU CENTRAL BANK CUTS REFERENCE RATE BY 25BPS TO 4.00%, NOT EXPECTED

***Fixed Income/Commodities/Currencies*** - (CN) Daily Shibor fixings: O/N: 3.7610% v 3.7300% prior (2nd consecutive rise); 1-week: 3.9390% v 3.8910% prior (2nd consecutive rise) - (CN) PBoC may drain net CNY14B next week from market without any other operations - financial press - USD/CNY: (CN) PBoC sets yuan mid point at 6.1355 v 6.1450 prior setting (highest Yuan setting since Oct 27th) - (JP) BOJ offers to buy ¥110B in JGB with maturity up to 1-yr, ¥200B in JGB with maturity over 10-yr, and ¥2T in T-bills outright - (AU) Australia MoF (AOFM) sells A$1B in 4.25% 2017 Bonds; avg yield: 3.1431%; bid-to-cover: 3.58x - (US) Weekly Fed Balance Sheet Assets Week ending Nov 6th: $3.808T (record high) v $3.800T prior; M1 y/y change: 8.8% v 9.0% w/w; M2 y/y change: 6.6% v 6.6% w/w

- USD majors are contained to narrow ranges after a volatile US session coming in the wake of a surprise ECB rate cut and a better than expected US GDP data. EUR/USD remains supported above $1.34 handle, while USD/JPY pared its losses to trade above 98.10 after falling nearly 2 big figures in US hours from its post-GDP highs. Strength in the Yen also weighed on Tokyo stocks, with Nikkei225 index falling about 1% in the afternoon session. AUD was once again in focus, selling off after the RBA quarterly policy statement below $0.9430 and subsequently rising to $0.9480 on better than expected China trade data.

***Speakers/Political/In the Papers*** - (CN) Ex-PBoC adviser Li Daokui: sees China economic growth to slowdown in next 2-3 years - financial press - (CN) PBoC may drain net CNY14B next week from market without any other operations - financial press - (CN) China Bank of Communications (BoCom): China non- state owned enterprises (SOE) stock outperformance signals excess optimism - (CN) China Securities Regulatory Commission (CSRC) may establish investors compensation fund - financial press - (CN) China Premier Li Keqiang: China economy has to expand 7.2% per year in order to create 10M jobs annually - Nikkei News - (CN) Barclays economist: China inflation in Oct expected to have risen, led by higher vegetable prices - Shanghai Daily

- (JP) Japan said to be delaying decision on collective self-defence; constitutional review to be put off - Japanese press - (JP) Japan parliament to ask finance lobby chiefs to appear in parliament - financial press

- (AU) Swaps markets now pricing in a near-30% chance of another RBA rate cut within 6 months - financial press

- (KR) Moody's: South Korea fiscal fundamentals support its AA3 rating and stable outlook

***Equities*** Market Snapshot (as of 03:30 GMT): - Nikkei225 -1.2%, S&P/ASX -0.5%, Kospi -0.6%, Shanghai Composite -1.1%, Hang Seng -0.6%, Dec S&P500 +0.2% at 1,748, Dec gold flat at $1,309, Dec crude oil +0.2% at $94.40/brl

US markets: - UBNT: Reports Q1 $0.46 v $0.39e, R$129.7M v $113Me; +13.8% afterhours - GPS: Reports Oct SSS +4% v +1.3%e; +8.0% afterhours - ARNA: Expands Marketing and Supply Agreement for BELVIQ (lorcaserin HCl) with Eisai; to receive $60M upfront payment and up to $176.5M in milestones; +6.6% afterhours - GRPN: Reports Q3 $0.02 (adj) v $0.01e, R$595M v $613Me; Acquires of Korea's Ticket Monster $260M; +1.5% afterhours - NVDA: Reports Q3 $0.26 v $0.20e, R$1.05B v $1.05Be; Raises quarterly dividend 13% to $0.085 from $0.075; +1.3% afterhours

- PCLN: Reports Q3 $17.30 v $16.20e, R$2.27B v $2.21Be; -1.1% afterhours - DIS: Reports Q4 $0.77 v $0.76e, R$11.57B v $11.4Be; -1.7% afterhours - AVG: Reports Q3 $0.52 v $0.47e, R$100.1M v $102Me; -10.2% afterhours - TRMR: Reports Q3 $0.00 v -$0.02e, R$35.3M v $36.8Me; -29.8% afterhours

Notable movers by sector: - Consumer discretionary: DeNA Co Ltd 2432.JP -11.1% (H1 results); Toppan Printing Co Ltd 7911.JP -2.0% (H1 results); Cosmos Initia Co 8844.JP -4.5% (H1 results); THK Co Ltd 6481.JP +8.8% (H1 results) - Consumer staples: Wilmar International WLIL.SG -2.0% (Q3 results) - Industrials: Nippon Sheet Glass Co Ltd 5202.JP -2.4% (H1 results); Bridgestone Corp 5108.JP +2.2% (9-month results); Nok Corp 7240.JP +3.4% (H1 results); Johnson Electric Holdings 179.HK +4.7% (H1 results; analyst action); Guangzhou Automobile Group 601238.CN +2.5% (Oct results); China Cosco Holdings Co Ltd 1919.HK -5.3% (exec under investigation) - Materials: Fuji Seal International Inc 7864.JP +10.8% (H1 results); Fortescue Metals Group Ltd FMG.AU -4.3% (Teck Resources plans to sell stake in Company) - Financials: ACOM Co Ltd 8572.JP -4.8% (H1 results); Everbright Securities Co Ltd 601788.CN -1.5% (Oct results) - Technology: Nikon Corp 7731.JP -4.4% (H1 results); Rakuten Inc 4755.JP -2.3% (9-month results); Avex Group Holdings Inc 7860.JP -9.2% (H1 results); Disco Corp 6146.JP +8.8% (H1 results); Toshiba Corporation 6502.JP -2.4% (plans on acquisition) - Utilities: TEPCO 9501.JP -1.5% (announces emergency staff measures)

After Hours Summary: SQNM +23.5%, OLED +17.2%, GPS +7.7%, AVG -9.9%, MNST -1.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: SNTS +37%, SQNM +23.5%, IL +22.5%, OLED +17.2%, MITK +15.5%, AIRM +14.3%, UBNT +12.9%, LCI +9.5%, SLXP +9.4%, FEYE +9.1%, ADEP +9%, ABTL +8.6%, AMRN +8.5%, PTIX +8.1%, GPS +7.7%, ARAY +7.1%, ACET +6.6%, ARNA +6.4%, CYTX +5.9%, MDRX +5.4%, NKTR +5.1%, PCYC +4%, SSTK +3.5%, ENSG +3.2%, CPST +2.7%, AREX +2.6%, ATW +2.6%, VVC +2.5%, UEPS +2.3%, NFG +2.2%

Companies trading higher in after hours in reaction to news: SNTS +37.0% (to be acquired by Salix Pharmaceuticals (SLXP) for $32 per share), GPS +7.9% (reported Oct same store sales +4% vs +0.6% Retail Metric consensus; also issued upside Q3 EPS guidance and reported Q3 sales above consensus), ARAY +7.1% (Two papers from a large multi-site study further demonstrate efficacy and quality of life benefits for prostate cancer patients treated with co's CyberKnife System), ARNA +6.6% (Co and Eisai expanded marketing and supply agreement for BELVIQ to include most countries worldwide; co also reported earnings), XONE +4.3% (announced it will open its seventh production service center), ENSG +3.2% (announced plan to separate its healthcare business and its real estate business into two separate and independent publicly-traded cos; adopted stockholder rights plan)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: NES -30.4%, TRMR -24.5%, MCZ -12.2%, AVG -9.9%, PXLW -8.9%, SYNM -7.7%, PODD -7.6%, FXEN -6.8%, SWIR -6.3%, SFM -5.4%, UNXL -5.1%, TEU -4.2%, ELON -4.1%, CLNE -4%, NVAX -3.6%, OPXA -3.2%, NSU -2.6%, MNST -1.9%, DIS -1.7%, PCLN -1.3%, TEP -1.3%, ALJ -1.1%, PGH -0.7%, TUMI -0.5%, XNPT -0.2%, MCP -0.2%, RP -0.2%, UEIC -0.2%, LUK -0.1%

Companies trading lower in after hours in reaction to news: SFM -5.4% (filed for 22.5 mln share common stock offering by selling shareholders), WYN -5.4% (completed $300 mln term securitization), ACPW -5.1% (disclosed it will restate its quarterly interim financial statements for first and second quarters of FY13), SLCA -4.6% (announced 10.5 mln share offering by selling stockholder), MRC -1.6% (priced secondary public offering of 17,489,233 shares of common stock by selling stockholders at $28.90 per share), CST -1.4% (priced public offering of 13,112,564 shares by selling stockholder at $31 per share), BCC -1.0% (announced pricing of secondary public offering of 7 mln shares of common stock at $22.50 per share)

Closing Market Summary: Nasdaq Leads Stocks Lower

The major averages ended on their lows after opening gains turned into broad-based losses. The S&P 500 fell 1.3% while the Nasdaq underperformed with a decline of 1.9%. Prior to the open, the European Central Bank cut its key interest rate by 25 basis points to 0.25% after recent data suggested the price level is moving away from the ECB's inflation target. The rate cut fueled a surge in the dollar while also sparking a risk bid. However, the equity gains were capped after a better-than-expected headline Q3 GDP reading (2.8% versus 2.5% consensus) fostered renewed speculation about a potential tapering announcement coming sooner rather than later. The immediate reaction in Treasuries also reflected a ‘taper on' trade as bonds sold off, sending the 10-yr yield from its low to a session high. However, Treasuries returned to their best levels of the day as weakness among equities redirected some flows into safe-haven assets. The 10-yr yield ended lower by four basis points at 2.61%. The Nasdaq paced today's decline as momentum names saw a continuation of yesterday's weakness. Facebook (FB 47.56, -1.56), LinkedIn (LNKD 211.47, -9.31), Priceline.com (PCLN 1022.89, -35.15), Tesla (TSLA 139.77, -11.39), and Yelp (YELP 61.83, -4.78), lost between 3.2% and 7.5% with Tesla seeing added pressure in reaction to reports of another car fire after the vehicle hit some debris on the road. The index was also pressured by Qualcomm (QCOM 67.09,-2.65) after the company reported disappointing results combined with cautious guidance. Even though the tech-heavy Nasdaq lagged, the traditional technology sector (-1.2%) ended ahead of the S&P along with two other top-weighted sectors—financials (-1.1%) and health care (-0.9%). Although equities registered broad losses, a pocket of strength could be found in the shares of Twitter (TWTR 44.90, +18.90), which began trading as a public company at $45.10 per share after pricing the IPO at $26. The social media stock ended the session below its opening price, but 72.7% above its IPO price. With stocks ending on their lows, the CBOE Volatility Index (VIX 13.90, +1.23)finished near its high. Today's selling invited above-average participation as more than 900 million shares changed hands on the floor of the New York Stock Exchange.

Taking another look at today's data, GDP increased 2.8% in the third quarter. That is up from a 2.5% increase in Q2 2013 and matches the best gain since Q3 2012. The consensus expected GDP to increase 1.9%. Final sales were up 2.0%, down slightly from a 2.1% increase in the second quarter. Overall, the economy performed in the third quarter in a similar fashion to how it performed in the second quarter. Inventories contributed slightly more to growth (0.8 percentage points vs. 0.4 percentage points), which was the main difference between the two quarters. Inventories have now increased for three consecutive quarters and are due for a normal pullback soon. That could leave headline GDP growth coming in weaker in the coming quarters.

Separately, the weekly initial claims level declined to 336,000 from an upwardly revised 345,000 (from 340,000). The consensus expected the initial claims level to fall to 335,000. The Department of Labor stated that there were no unusual factors in the initial claims data. After two months of biases from computer glitches and the government shutdown, the initial claims report is giving a clean reading of the labor situation.

Unfortunately, the claims level is almost exactly where it was prior to the problems in the claims data. Layoff levels have remained steady and the private sector is very comfortable with its current labor needs.

Tomorrow, October non-farm payrolls, September personal income, personal spending, and core PCE prices will all be reported at 8:30 ET while the preliminary reading of the November Michigan Sentiment Survey will be released at 9:55 ET.

o Nasdaq +27.8% YTD o Russell 2000 +27.1% YTD o S&P 500 +22.5% YTD o DJIA +19.0% YTD

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Telecom Italia Lowers FY Ebitda Target; Net Misses Est. 2013-11-07 17:51:16.598 GMT

By Sam Chambers and Jim Silver Nov. 7 (Bloomberg) -- 3Q net income EU505m vs est. EU525m, keeps FY forecast for stable sales. * Sees mid single-digit Ebitda decline y/y, previously saw low single-digit Ebitda decline y/y * 3Q sales EU6.63b vs est. EU6.64b * 3Q Ebitda EU2.7b vs est. EU2.71b * At end of Sept., adj. net debt was EU28.2b vs EU28.8b q/q * Statement * Preview * NOTE: TIM Brasil reported 3Q results on Oct. 29

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

--Editor: Louisa Fahy

To contact the reporters on this story: Sam Chambers in London at +44-20-7673-2021 or schambers7@bloomberg.net; Jim Silver in New York at +1-212-617-7342 or jsilver@bloomberg.net

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

OGX Petroleo e Gas Participacoes SA ISDA determines a bankruptcy event occurred and an auction should be held - reference: {http://dc.isda.org/documents/2013/11/ogx-petroleo-e-gas-participacoes-s-a-110713-dc-decision.pdf}

Joy Global sees quick pop as takeover rumor makes the rounds