TheChek News Flow

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SDAX:

Asian stocks and American equity futures dropped after support from the U.S. Congress for Hong Kong protesters set up the potential for further confrontation with China as investors await a trade deal. The yen and Treasuries rose.

The MSCI Asia Pacific Index at one point fell the most in almost three months and S&P 500 futures slid. The biggest drop was in Hong Kong, with President Donald Trump expected to sign the bill. A recent Reuters report that a pact between the two countries may be delayed also weighed on sentiment. The moves did ease as China’s chief negotiator offered some hope, saying he was “cautiously optimistic” about reaching a phase one trade deal with the U.S.

US After Hours NUAN +7%, CPRT +5.3%, JACK / LB +3%, SONO +2% are higher, while CUB -11.5%, LZB -8.8%, NTES -1.7% are lower following earnings/guidance

Nikkei -0.48% Hang Seng -1.65% CSI -0.73% Shanghai -0.50% Shenzen -0.54%

Eur$ 1.1075 CNH 7.0430 CNY 7.0410 JPY 108.59 GBP 1.2927 CHF 0.9912 RUB63.8218 TRY 5.7038 WTI$ 56.83 -0.32%

S&P -0.13% EuroStoxx -0.46% FTSE -0.40% Dax-0.50% SMI

Macro :

- Nickel Enters Bear Market, UBS on Gold: N.A. Materials Wrap

- China’s Top Trade Negotiator ‘Cautiously Optimistic’ on Deal

- Trump Hosted Zuckerberg, Thiel at White House Dinner in Oct: NBC

- Trump Expected to Sign Hong Kong Bill Despite China Threats

- Fed Officials Stress Trade Risk Seen as `Significant’

- U.S. Investor Bull-Bear Spread 5.21: AAII

- Labour Sees Windfall Tax on Oil Firms in Election Manifesto: BBC

- Corbyn Manifesto Targets Britain’s Wealthy: U.K. Campaign Trail

Keep an eye on :

- ABN NA : ABN Probed in 7 Cases of Alleged Insufficient Client Checks: NRC

- ASR IM : AS Roma’s Main Shareholder Is in Talks With Potential Investors

- AVST LN : Avast Holder Vincent Steckler Said to Offer 18m Shares via UBS

- BAKKA NO : Bakkafrost to Raise Up to NOK500M in 0.0285-for-1 Rights Offer

- BATS LN : FDA Nicotine Plan Halt Will Slow Altria's Diversification: React

- BBVA SM : BBVA Freezes EU1.3B Real Estate Portfolio: El Confidencial

- BEFB BB : Befimmo Sets Issue Price Optional Stock Dividend at EU54.39

- BMW GY : BMW Signs 2.9b Euros Battery Cell Deal With Samsung SDI

- EN FP : Bouygues Said to Seek Partners for $2.2 Billion Fiber Projects

- CAI AV : CA Immo Nine Month FFO I EU101.4 Mln

- CLI LN : CLS Holdings Sees Earnings in Line With Expectations

- COTN SW : Comet Targets Ebitda Margin of ~25% in 2025

- CSGN SW : Credit Suisse Is Hiring in Emerging Markets, Says CEO Thiam

- DAI GY : Daimler CEO Says Incentives Crucial to Stimulating E-Car Demand

- DBK GY : Deutsche Bank Resumes Oilfield-Service Research as Peers Retreat

- DBK GY : Germany’s Banking Outlook Has Changed to Negative, Moody’s Says

- DIA SM : DIA Says it Has Completed EU605 Million Capital Increase

- DLG LN : Direct Line Sees Full Year Capital Expenditure About GBP175 Mln

- EBS AV : *ERSTE TARGETS 2020 RETURN ON TANGIBLE EQUITY OF OVER 10%

- EL FP : Del Vecchio Increases Stake in EssilorLuxottica to 32.8%: Sole

- FCA IM : *FIAT CHRYSLER SAYS IT WILL DEFEND AGAINST `MERITLESS' LAWSUIT

- FDJ FP : FDJ Raises $2.1 Billion in France’s Largest IPO in 14 Years

- GIMB BB : Gimv First Half Net Income EU51.4 Mln, -18% Y/y

- HAL NA : HAL 3Q Net Asset Value Per Share EU160.05 Vs. EU139.85 Q/q

- HDD GY : Heidelberger Druck Sells Hi-Tech Coatings to ICP for EU38.5m

- HLNG NO : Hoegh LNG Third Quarter Ebitda Beats Estimates

- HILS LN : Hill & Smith Sees Earnings in Line With Market Expectations

- HSS LN : HSS Hire Sees Earnings in Line With Market Expectations

- IBS PL : Ibersol Nine Month Net Income EU17.5 Mln

- ISAT LN : Inmarsat Buyout Faces Fresh Opposition as Court Ruling Looms

- ISAT LN : Ligado Airwaves Proposal Opposed by U.S. Defense Department

- ITP FP : Interparfums Sees 2020 Op. Margin Between 14% and 14.5%

- KGH LN : Knights Says Performance is in Line With Market Expectations

- LHA GY : Italy Minister Demands Lufthansa Invest in Alitalia: Class CNBC

- LSE LN : London Stock Exchange Works With Startup to Widen IPO Access

- MC FP : LVMH and Tiffany Are Said to Enter Talks After LVMH Boosts Offer

- MAR PL : Martifer Shareholders to Discuss Plan to Bolster Capital Dec. 18

- ALOCA FP : Dickson Acquisition Offers EU2.85 Per Oceasoft Remaining Shr

- ORK NO : Orkla Sells Oslo Business Park to Stor-Oslo Eiendom; No Terms

- PU11 GY : Social Chain AG /The to Offer Up to 904k Shrs

- RNO FP : Marchionne’s One-Time Protege De Meo Leads Renault CEO Race

- ROR LN : Rotork Sees Earnings in Line With Expectations

- SEM AV : Semperit Nine Month Ebitda EU56.4 Mln

- SDRL NO : Seadrill Ltd 3Q Adjusted Ebitda Beats Highest Est.

- SDRL NO : Billionaire Fredriksen Steps Down as Chairman of Seadrill

- SRG IM : Snam Raises 2019 Net Guidance; Confirms Average Growth to 2023

- SOPH LN : Sophos Holders Lammer, Hruska to Offer Shares

- TKA GY : Thyssenkrupp Set to Suspend Dividend as Losses Widen Amid Spiral

- UBSG SW : UBS CEO Says We Are Extremely Well Positioned on Wealth Growth

- WMH LN : William Hill Says Performance is in Line With Expectations

* BMW Raised to Neutral at JPMorgan; PT 70 euros

* Hella Raised to Buy at Goldman; PT 55 euros

* SGS Raised to Sector Perform at RBC

>>> Down

* American Shipping Cut to Hold at SpareBank; PT 35 kroner

* Aviva Cut to Hold at Deutsche Bank; PT 450 pence

* Fevertree Drinks Cut to Hold at Deutsche Bank; PT 2,200 pence

* Hays Cut to Hold at HSBC; PT 155 pence

* Mitchells & Butlers Cut to Neutral at Citi

* Mitchells & Butlers Cut to Equal-Weight at Morgan Stanley

* Senior Cut to Hold at Peel Hunt; PT 175 pence

>>> Initiation

* AJ Bell Rated New Hold at Berenberg; PT 370 pence

* C&C Rated New Underweight at Barclays; PT 310 pence

* Cementir Holding NV Rated New Outperform at MainFirst

* IntegraFin Rated New Buy at Berenberg; PT 460 pence

* JD Sports Rated New Buy at Goldman; PT 870 pence

* Nucleus Financial Group Rated New Buy at Berenberg

* Premier Foods Rated New Buy at Peel Hunt; PT 50 pence

* Smith & Nephew Rated New Buy at Citi

* Travis Perkins Reinstated Hold at Deutsche Bank; PT 1,550 pence

* Umicore Rated New Buy at Goldman; PT 51 euros

>>> Call

* Buy IntegraFin, Nucleus Among Investment Platforms: Berenberg

* Bucher ‘Looks Cheap,’ Re-Initiated With Buy at Berenberg

* Senior to Face Tougher 2020, Peel Hunt Downgrades Rating to Hold

* Smith & Nephew at Attractive Entry Point; Citi Initiates at Buy

NEW YORK (Reuters) - French luxury group LVMH (LVMH.PA) has persuaded U.S. jewelry chain Tiffany & Co (TIF.N) to provide it with confidential due diligence after it raised its bid to close to $16 billion, people familiar with the matter said on Wednesday.

The development represents a key milestone in LVMH’s bid for the iconic U.S. maker of engagement rings. Tiffany earlier this month rebuffed LVMH’s initial $120-per-share all-cash offer, arguing it significantly undervalues it.

Tiffany agreed to provide LVMH with access to its books, after the latter sweetened its bid to close to $130 per share, the sources said. Tiffany plans to continue to negotiate for a better offer, and there is no certainty a deal will be reached, the sources added.

LVMH and Tiffany did not immediately respond to requests for comment.

Tiffany shares jumped 3.6% to $127.75 in after-hours trading in New York on the news on Wednesday.

Jewelry was one of the strongest performing areas of the luxury industry in 2018, according to consultancy Bain & Co, which forecast that comparable sales in the $20 billion global market were set to grow 7% this year.

Tiffany, founded in New York in 1837 and featured in the 1961 movie “Breakfast at Tiffany’s” starring Audrey Hepburn, had struggled with falling annual sales and profit since 2015, before a revenue turnaround in 2017.

Under Chief Executive Alessandro Bogliolo, former head of fashion firm Diesel and a Bulgari alumnus, Tiffany has been building up its e-commerce business, and is trying to court younger shoppers with more affordable pendants and earrings and new designs.

However, LVMH believes Tiffany needs to spend more on reinventing and marketing its brands, and that it can achieve this only as a division of LVMH, according to the sources.

LVMH’s 2011 purchase of Bulgari boosted its smallest and newest business division, jewelry and watches, which also includes Hublot and Tag Heuer watches. Nonetheless, that business accounted for 9% of revenue and 7% of LVMH earnings in 2018, about only a fifth the size of its core fashion and handbag business, home to brands like Christian Dior, Givenchy and Louis Vuitton.

Acquiring Tiffany would increase LVMH’s exposure to the bridal and diamond category, as well as to U.S. luxury shoppers. Should there be a deal, LVMH plans to keep the Bulgari and Tiffany’s brands separate, according to one of the sources.

In recent months, Tiffany and LVMH, as well as their peers Kering (PRTP.PA) and Richemont (CFR.S), have seen a dent in their revenue as a result of turmoil in Hong Kong, where anti-government protests have scared off tourists and battered spending in the Chinese-ruled city.

- Worries about bubbles and trade war

Ex-military chief Benny Gantz’s failure means the country is likely headed for a third election in a year

TEL AVIV—Former military chief Benny Gantz failed to form a government by his Wednesday deadline, raising the likelihood of a third election in a year while prolonging Prime Minister Benjamin Netanyahu’s rule and political uncertainty in the country.

Mr. Gantz blamed his inability to form a unity government on the Israeli premier and Mr. Gantz said he was willing to make far-reaching compromises.

“I appeal again to Netanyahu, Israel is more important and stronger than you, the choice of Israeli voters is stronger than any bloc,” Mr. Gantz said in Tel Aviv on Wednesday night, one month after receiving a presidential mandate to form a government.

Israel will now for the first time enter a three-week period whereby the 120 members of its parliament will attempt to find a majority to either support Mr. Gantz or Mr. Netanyahu again, or pick a third candidate to try to form a government. If they fail, Israelis will vote again, likely in early March, with Mr. Netanyahu leading the country in the interim.

Opinion polls predict a third election would bring Israel straight back to the current stalemate.

Wednesday’s result is a victory of sorts for Mr. Netanyahu, who is better positioned as premier to face a possible indictment by Israel’s attorney general on charges of bribery, fraud and breach of trust in three separate criminal cases.

Mr. Netanyahu denies wrongdoing. He says he won’t seek immunity if he’s indicted but his supporters say they will work within Israel’s parliament to do so on his behalf. A decision by the attorney general is expected within days.

Mr. Gantz’s failure comes after Avigdor Lieberman, who emerged as a kingmaker after September’s inconclusive election, said earlier Wednesday that his Yisrael Beiteinu party wouldn’t back either Mr. Gantz’s Blue and White party, or Mr. Netanyahu’s Likud, blaming them both for presenting conditions he said he couldn’t support.

In Mr. Gantz’s case, that meant backing or joining a minority government in coordination with Israel’s Arab parties, who Mr. Lieberman accused of being a “fifth column.” Mr. Lieberman also scorned the ultraorthodox parties that Mr. Netanyahu wants in a unity government.

With both options unpalatable to him, he said he would prefer third elections and urged Israel to consider electoral reforms including a direct vote.

“A narrow government will be unable to deal with the developments and the decisions that must be made,” Mr. Lieberman said, dimming the prospects of either Mr. Gantz or Mr. Netanyahu forming a government in the next three weeks.

At the same time, Mr. Gantz said he preferred to form a national unity government as a more stable alternative to a minority government, but rejected an alliance with Mr. Netanyahu that would allow him to serve as premier while he faces possible graft charges.

Mr. Netanyahu had earlier Wednesday appealed to Mr. Gantz to negotiate a new government with both Likud and Blue and White, the two largest parties.

He said the Trump administration’s policy shift this week to no longer consider Israeli settlements in the West Bank illegal offered a historic opportunity to form a unity government and annex the Jordan Valley and other parts of the territory.

“It’s not too late,” Mr. Netanyahu said. “We must not lose a single day—we have already lost a whole year.”

If Israel has a third election, the Trump administration is likely to shelve its Israeli-Palestinian peace plan after having failed for more than two years to find an appropriate time to release it. U.S. officials have said they are waiting for Israel to form a government before putting out their political blueprint, after several delays.

Both Mr. Netanyahu and Mr. Gantz predicted their parties would win if a third vote was held, with the Blue and White leader saying voters across the political spectrum are fed up with Mr. Netanyahu and his long rule.

“Netanyahu, if at the end of the day we descend into elections because of you...we will win and establish a national reconciliation government, wide and strong,” Mr. Gantz said.

In September’s election, no party or coalition secured the 61 seats needed to control Israel’s parliament, called the Knesset. Mr. Gantz’s Blue and White party won 33 seats, while Mr. Netanyahu’s Likud secured 32. Mr. Lieberman’s Yisrael Beiteinu party won eight seats.

The deadlock created a monthslong political standoff between Mr. Netanyahu and Mr. Gantz, a onetime army chief and relative political neophyte who has benefited from voter fatigue over his former boss’s long reign.

Questions over the balance of religion and state were also prominent in Israel’s elections, including the role Israel’s burgeoning ultraorthodox community should play in the military and the place religion should have in civil society. A year ago, Mr. Lieberman withdrew his support for Mr. Netanyahu over the premier’s growing dependence on religious parties to keep himself in power, sparking the current political standoff.

The Knesset can still tap Mr. Gantz or Mr. Netanyahu to try again. Political analysts said if Mr. Netanyahu is charged, members of his Likud party and some of his right-wing religious supporters could break ranks and join a government led by another Likud candidate or by Mr. Gantz.

Mr. Netanyahu faces as much as 10 years in prison if convicted of the most serious of the charges—bribery—and his critics have accused him of leading Israel into a series of elections to remain prime minister and pass legislation that would grant him immunity from prosecution.