Mediaset working on big deal in European TV sector: CEO
ROME (Reuters) - Italy’s biggest private broadcaster Mediaset is working on a large merger or acquisition in Europe’s TV sector, its chief executive said on Wednesday.
In June, Berlusconi said Mediaset was looking to create a pan-European broadcaster to fend off competition from traditional rivals and online content providers like Netflix.
Mediaset, controlled by the family of former prime minister Silvio Berlusconi, tried to broaden its business in 2016 with a pay-TV agreement with French media giant Vivendi aimed at building a southern European media powerhouse.
But the deal fell through when Vivendi, which owns 28.8 percent of the Italian group, backtracked, leading to a court battle.
“When the deal is done, we’ll announce it,” Berlusconi said.
Asian equities advanced Thursday, putting them on track to end the longest losing streak in 16 years, after news of potential U.S.-China trade negotiations. The dollar pared a decline and China’s yuan held gains.
The MSCI Asia Pacific Index rose after 10 days of losses, with Hong Kong and Japanese shares leading the charge. Futures pointed lower for stocks in Europe and New York. Treasuries steadied, while U.S. stocks ended Wednesday mixed. Crude oil pared its biggest two-day increase as traders keep watch on Hurricane Florence’s path to the U.S. east coast. The euro and the pound slipped ahead of policy decisions from the European Central Bank and the Bank of England.
Macro :
- Fed Beige Book Anecdotes: Districts Note Concerns Over Trade
- Kudlow Confirms U.S. ‘Invitation’ to China for New Trade Talks
- Semis ‘Look Broken,’ Have More Room for Losses: Wolfe’s Ginsberg
Keep an eye on :
- ABG SM : Abengoa to Hold Shareholders Meeting to Vote on Share Split
- ADP FP : Paris Airports Aug. Passenger Traffic Rises 4.2%: ADP
- AAPL US : Apple’s New IPhones to Fuel Higher Unit Sales, ASP: Gene Munster
- ADYEN NA : Adyen Holders pre-IPO minority shareholders to Offer EU1.5b Shrs
- BATS LN : E-Cigarette Addicts May Switch to Tobacco on FDA Plans: Liberum
- BP/ LN : BP Plans to Sell Off Legacy Assets Over Next 2-3 years: Lawler
- BIFF LN : Biffa Says 1H Performance in Line With Expectations
- DEB LN : Sports Direct Confirms It Does Not Intend to Acquire Debenhams
- DHER GY : Delivery Hero First Half Adjusted Ebitda Loss EU54.8 Mln
- DBK GY : China Sovereign Wealth Fund May Buy HNA’s Deutsche Stake: WSJ
- FRE GY : Fresenius Group Sees Fiscal 2018 Net Income Growth +6% to +9%
- FLR US : Fluor Gets $2b Contract Extension from U.S. Department of Energy
- GWI1 GY : Gerry Weber Third Quarter Ebitda Loss EU1.3 Mln
- GPLG NA : Morphosys & Galapagos Get U.S. Clearance for Pact with Novartis
- GPLG NA : Galapagos to Offer $300m ADR via Morgan Stanley, Citi --> Galapagos Offering Prices 2.58m Shares at $116.50/Share
- GREEN BB : Greenyard Demoted to BEL Small Index as Oxurion Joins BEL Mid
- IAG LN : BA Is Said Verging on Pension Insurance Pact With L&G: Sky
- IMMO BB : Immobel to Enter Paris Office Development, Hires Axa’s Michel
- IRE IM : Iren Launches EU500M Green Bond Issue
- KORI FP : Korian Raises FY Rev. Growth, Margin Targets
- LGEN LN : BA Is Said Verging on Pension Insurance Pact With L&G: Sky
- MRW LN : Morrison First Half Revenue Meets Estimates
- MS IM : Mediaset Probably Will Sell Pay-TV Platform to Sky: Radiocor
- ML FP : Michelin Confirms 2018 Guidance After External Factors Review
- MOR GY : Morphosys & Galapagos Get U.S. Clearance for Pact with Novartis
- KN FP : *NATIXIS MAY PAY SPECIAL CASH DIV. UP TO EU1.5B AFTER DISPOSALS
- KN FP : Natixis Selling Factoring Units to Parent BPCE
- NOVN SW : Novartis Says Data Confirm Cosentyx Efficacy, Safety Benefits
- MRW LN : Wm Morrison to Pay Further Special Dividend of 2 Pence Per Share
- NOLAB SS : Nolato Doesn’t Deliver E-Cigarette Parts to U.S., CEO Tells DI
- OPHR LN : Ophir Says Will Downsize London Office as It Seeks to Cut Costs
- PNL NA : Broad Support for PostNL/Sandd Merger in Dutch Parliament: FD
- PUB FP : Publicis Supervisory Board Renews Management Board Mandate
- RECIB SS : Teva Is Said to Draw Interest From Recipharm, EMS for Medis Unit
- RCDO LN : Ricardo Outlook Positive With Good Pipeline, U.K. Uncertainties
- RKET GY : Rocket Internet-Backed Westwing Group Plans IPO
- RUI FP : Rubis First Half Net Income EU129 Mln
- RYA LN : Ryanair to Face More Strikes, German Pilot Union Head Tells HAZ
- SPM IM : Saipem CFSO Bozzini Resigns
- SGL GY : SGL to Issue Convertibles With Principal Value of About EU160m
- STORYB SS : Storytel to Raise SK400M-500M in Share Sale
- TEVA IT : Teva Is Said to Draw Interest From Recipharm, EMS for Medis Unit
- TKWY NA : Takeaway Offering by Holders Prices 2.4m Shares at EU65.50/Share
- TKA GY : Thyssenkrupp Is Said to Restructure Industrial Management: HB
- FP FP : Total Exercises Option to Buy 25% Interest in Orinduik Block
- TLW LN : Total Unit Buys 25% Interest in Tullow-Operated Orinduik
- VOD LN : Buy Vodafone Ahead of CEO Presentation, Deutsche Bank Says
- VOLVB SS : Volvo CEO Says Truck Demand in Europe Continuing at Good Level
>>> Up
* Antofagasta Upgraded to Hold at HSBC; Price Target 7.60 Pounds
* CYBG Upgraded to Hold at Investec
* KAZ Minerals Upgraded to Buy at HSBC; PT 5.60 Pounds
* Navigator Co Upgraded to Buy at Haitong; PT 5.20 Euros
* Nynomic Upgraded to Buy at Oddo BHF; PT 29 Euros
>>> Down
* ASR Nederland Downgraded to Hold at Deutsche Bank
* N Brown Downgraded to Hold at Stifel; PT 1.41 Pounds
>>> Initiation
* Consus Real Estate Rated New Buy at Baader Helvea
* Continental Rated New Hold at Hauck & Aufhaeuser
* Galapagos Rated New Overweight at JPMorgan; PT 120 Euros
* Majestic Wine Rated New Outperform at RBC
* Philips Rated New Outperform at Bernstein
* Rexel Rated New Underperform at MainFirst; PT 11.60 Euros
* Securitas Rated New Hold at Jefferies; PT 160 Kronor
* Siemens Healthineers Rated New Market Perform at Bernstein
* SkiStar Rated New Buy at DNB Markets; PT 253 Kronor
* Ubisoft Rated New Equal-weight at Morgan Stanley; PT 100 Euros
>>> Call
Asia Market Update: Asian equity markets open generally higher on reported optimism related to possible US/China talks: Australian yields rise after better than expected employment data; Upcoming Central Bank meetings in focus
General Trend:
- Markets later pare opening gains
-Australia S&P ASX200 index lags on declines in financials and utilities
-Taiwan Semi declines in the aftermath of Apple’s product announcements
- US reportedly planning new round of trade talks with China led by Treasury Sec Mnuchin to get economic negotiations back on track (press)
-China Soybean Futures decline, while Shanghai Copper rises amid the trade optimism
- NZD declines as milk company Fonterra reports first ever annual loss; Next week’s GDP data in focus (Sept 20th)
-South Korea bond yields rise after PM was said to comment on interest rates; curve flattens
-ECB and BoE due to hold policy meetings later today
***Headlines/Economic Data***
Australia/New Zealand
-ASX 200 opened -0.1%
- ASX 200 Utilities index -1.5%, Financials -1%, Consumer Discretionary -0.3%, Telecom -0.3%; Resources +1.1%, REIT +0.6%
- (AU) AUSTRALIA AUG EMPLOYMENT CHANGE: +44K V 18.0KE; UNEMPLOYMENT RATE: 5.3% V 5.3%E
- (AU) Australia 3-year bond yield rises after better than expected employment change; up over 3bps on session
- (AU) Australia Sept Consumer Inflation Expectation: 4.0% v 4.0% prior
- (AU) Australia Trade Min Ciobo: The policies of the India and Pakistan government have contributed to the glut in the global sugar market
- (NZ) New Zealand Aug REINZ House Sales Y/Y: +3.1% v +0.7% prior
- (NZ) New Zealand Aug Food Prices M/M: -0.5% v 0.7% prior (first decline since Feb)
- (NZ) New Zealand sells NZ$250M v NZ$250M indicated in April 2029 bonds, avg yield 2.5711%, bid to cover: 3.1x
- Fonterra [FCG.NZ]: Reports FY18 (NZ$) Net loss 196M; Normalized EBIT 902M, -22% y/y; Rev 20.4B, +6% y/y
China/Hong Kong
-Shanghai Composite opened +0.9%, Hang Seng +1.7%
- Hang Seng Info Tech index +2.7%, Energy +2.7%, Materials +2.6%, Services +2.5%, Industrial Goods +2.2%, Financials +1.3%, Property/Construction +1.3%, Consumer Goods +0.2%
- (CN) China PBoC Open Market Operation (OMO): Injects CNY120B in 7 and 14-day reverse repos v CNY60B injected in 7-day reverse repos prior: Net: CNY120B injection v CNY60B injection prior
- (CN) China PBoC comments on earlier injection in open market operation (OMO): Says the fund injection aimed at countering factors related to tax payments and government bond issuance
- (CN) China PBoC set yuan reference rate: 6.8488 v 6.8546 prior
- (CN) China said to end output cuts for steel companies with low emissions - Chinese Press
*(CN) CHINA AUG M2 MONEY SUPPLY Y/Y: 8.2% V 8.6%E (released on Sept 12th)
- (CN) CHINA AUG NEW YUAN LOANS (CNY): 1.280T V 1.350TE (released on Sept 12th)
Japan
-Nikkei 225 opened +0.2%
-TOPIX Marine Transportation index +2%, Info & Communications +1.7%, Iron & Steel +1.5%, Retail Trade +1.5%, Real Estate +1.1%, Electric Appliances +0.4%
-Automakers generally outperform
-Toyota: Said to have received a technology sharing request from China related to hybrid car technology, in talks to license hybrid system to Geely - US financial press
- (JP) Japan Jul Core Machine Orders M/M: 11.0% v 5.5%e (fastest rise since Jan 2016); Y/Y: 13.9% v 4.3%e
- (JP) According to the Japan Center for Economic Research, July GDP declined by 0.5% m/m; cited narrowing trade balance and flat domestic demand – Japanese Press
- (JP) Japan MoF sells ¥2.0T v ¥2.0T indicated in 0.10% 5-year JGBs, avg yield -0.0710% v -0.0760% prior, bid to cover: 5.53x v 3.95x prior
Korea
-Kospi opened +0.1%
- (KR) South Korea PM Lee Nak-yon said it is time to 'seriously' discuss raising policy interest rate - SK Press
- (KR) South Korea reportedly to raises taxes on property ownership for multiple homeowners to curb speculative buying - press
- (KR) South Korea Finance Ministry: Plans to issue 10 and 30-year US dollar denominated bonds; details to be decided at a later date
- (KR) South Korea President said to have asked Samsung and Hyundai to visit North Korea - South Korean Press
- (KR) North Korea may name new UN Ambassador next week - South Korean Press
Other
- (ID) Moody's: Indonesia credit is resilient to Rupiah (IDR) weakness, but further currency declines would be broadly credit negative
- (SG) Singapore Monetary Authority (MAS) Managing Dir Menon: Global economy is currently remarkably resilient; tariffs thus far are not yet in the data; Global growth 'bound' for slowdown into 2019
North America
-US equity markets ended mixed: Dow +0.1%, S&P500 flat, Nasdaq -0.2%, Russell 2000 -0.2%
-S&P500 Financials -0.9%; Consumer Staples +1.2%
- (US) National Hurricane Center (NHC): Hurricane Florence downgraded to a Category 2 storm (vs. Category 3 prior), maximum sustained winds 110 mph v 115 prior
- (US) DOE CRUDE: -5.3M V -1.5ME;
- (CA) Canada Foreign Min: Will not be at the Thursday talks related to NAFTA, officials to work on NAFTA in Washington on Thursday; talks are not at a 'stalemate’
Europe
- (IT) Italy Fin Min Tria reportedly threatening to quit over budget - press
- (UK) EU reportedly has started redrafting an Irish Brexit protocol as a conciliatory gesture toward UK – press
- (UK) Group of Tory Party rebels reportedly sets three-week deadline for PM May to ditch current 'Chequers' plan for Brexit deal – press
- (UK) Brexit Min Raab: Warns that UK will not pay EU divorce bill without a Brexit agreement
- (UK) UK Government: To publish 'no deal' Brexit papers on mobile roaming charges and vehicle standards on Thursday
- (UK) UK PM May expected to discuss immigration rules at a meeting on Sept 24th - UK Press
-RBS: Chairman said to consider up to £4.0B special dividend - UK Press
- (TR) Turkey has decided that property sales and rental agreements cannot be made in foreign currency - Local Press
- (PT) IMF: Portugal outlook is 'positive', sees external risks - Article IV Consultation
***Levels as of 01:30ET***
- Nikkei 225, +1%, ASX 200 -0.7%, Hang Seng +1.2%; Shanghai Composite +0.2%; Kospi +0.1%
- Equity Futures: S&P500 -0.1%; Nasdaq100 -0.2%, Dax flat; FTSE100 +0.2%
- EUR 1.1643-1.1622 ; JPY 111.47-111.15 ; AUD 0.7201-0.7165 ;NZD 0.6567-0.6549
- Dec Gold -0.1% at $1,210/oz; Oct Crude Oil -0.7% at $69.86/brl; Dec Copper -0.2% at $2.680/lb
After Hours Summary: PI +37.1% on earnings/conclusion of audit investigation news, PVTL -25% and TLRD +11% following earnings/guidanceAfter Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: PI +37.1% (also completes independent investigation and files form 10Q), TLRD +10.7%
Companies trading higher in after hours in reaction to news: CZR +4.3% (reports that HG Vora has increased its holding to urge the company to explore divestitures options), FLR +1.7% (Fluor Federal Petroleum Operations gains DOE Strategic Petroleum Reserve contract extension; will book the $2 bln contract extension value in Q3 2018), TLRY +1.5% (after closing up 10% on the day), XENE +1.1% (announces proposed public offering of common shares), TEAM +1.6% / NEWR +1.2% / OKTA +0.7% / DATA +0.5% (positive mention on MadMoney), AMD +1% (continued momentum), BGS +0.8% (ticking higher; Hershey Foods to acquire B&G Foods' Pirate Brands for $420 mln; to use proceeds for the repayment of long-term debt and possible acquisitions)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: PVTL -25.1%, OXM -3.6%
Companies trading lower in after hours in reaction to news: PGNX -21.2% (reports top line data for Phase 3 study on a prostate cancer visualization agent; co-primary endpoint of sensitivity was not met), SRTS -7.3% (commenced public offering of common stock), DDR -4.9% (light volume; declared Q3 common stock dividend of $0.20 per share vs Q2 common stock dividend of $0.38 per share after giving effect to the one-for-two reverse stock split), FOMX -3.6% (proposed follow-on underwritten public offering of $70 mln of its ordinary shares), HL -2.4% (filed for ~1.87 mln share common stock offering by selling shareholders), GLPG -1.4% (launches $300 mln offering of ordinary shares in the form of ADSs in a U.S. public offering; also MorphoSys [MOR] and Galapagos global license agreement for MOR106 with pharma partner Novartis [NVS] receives U.S. Antitrust Clearance), LGND -1% (Lemelson Capital Management responds to SEC charges), FND -0.7% (announces secondary offering of 10 mln shares by selling stockholders), TSLA -0.4% (Elon Musk tweet suggested potential longer response times expected 'due to a large increase in vehicle delivery volume in North America')
Sandd/PostNL gets Government of The Netherlands active support (translated)
12 SEP 2018
The government of The Netherlands would actively support a merger of Dutch postal companies PostNL[AMS:PNL] and Sandd, De Financieele Telegraaf reported.
The paper cited Mona Keijzer, state secretary at the ministry of Economic Affairs, who discussed the issue in parliament.
PostNL and Sandd are competitors, but their business is declining. The amount of letters being delivered has reduced by half in the last ten years, the report said, making current employment levels in PostNL and Sandd unsustainable.
Keijzer told the parliament that she is therefore in favour of consolidation. If the Dutch Competition Authority would decide to not give the green light to the merger, the state secretary emphasised that she has the power to overrule such a decision.
PostNL and Sandd have in the past held talks at the ministry of Economic Affairs about a possible merger. But they haven't come up with any concrete plan to merge yet, the item noted.
In 2017 PostNL recorded a turnover of EUR 3.5bn while Sandd had revenues of about EUR 195m.
Link to original source
Exclusive - Deutsche Bank weighs overhaul that could make deals easier: sources
FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) is considering an overhaul to loosen the bond between its retail and investment banks, according to three people with knowledge of the matter, a move that could make it easier to merge some or all of the group with rivals.
The German lender is examining creating a holding company structure, a step that would give it more flexibility to strike merger deals, as it seeks to regain its footing following years of heavy losses and multi-billion-dollar penalties.
The possibility is likely to be discussed at a meeting of management later this week in Hamburg, other people familiar with the matter said, as the bank’s new chief executive, Christian Sewing, sets a new course for the struggling lender.
“I gravitate to the holding structure,” said one of the people with direct knowledge of the debate.
Deutsche Bank declined to comment.
The structure, which would act as an umbrella over separate entities including its investment and retail banks, would see Deutsche following the example of U.S. rivals.
No decision, however, has yet been made, and while such an arrangement would bring potential advantages for the group, a number of questions about how it would work in practice, such as its tax impact, remain unanswered.
The debate to switch to the new structure comes at a time of upheaval for Deutsche.
Sewing was propelled to the helm earlier this year to reverse three consecutive years of losses and a falling share price. He has been on a mission to slim down the bank’s international operations and promote steadier income streams in its home market of Germany.
As Deutsche’s fortunes have declined, speculation of a possible merger has risen. Deutsche’s cross-town rival Commerzbank (CBKG.DE) is mentioned as the most likely candidate.
The German government, which owns a 15 percent stake in Commerzbank, has recently voiced the need for a strong German banking industry to support companies in the nation’s export-led economy. That has stoked speculation it could engineer a merger.
Deutsche Bank AG9.531
DBKGN.DEXETRA
-0.09(-0.97%)
Executives at both banks have privately talked down the chances of a merger anytime soon, saying the banks would need to overhaul their operations and restore profitability first.
While the holding structure could simplify potential mergers and acquisitions, giving flexibility in integrating a rival business, it has other benefits.
One of the people said it could shore up confidence in the investment bank by possibly making it cheaper to obtain finance if the holding company were to relieve it of some of the financial burden.
Regulators in the United States, UK and Switzerland also tend to favour the bank holding company structure, in part because it can help with the winding up of a troubled bank.
There has been a push since the financial crash to make banks easier to break up, lowering the risk that the problems of a troubled investment bank, for instance, could spill over onto ordinary savers.
About 90 percent of U.S. banks, including Citigroup and JPMorgan Chase, operate as holding companies, according to the U.S. Federal Reserve.
Closing Market Summary: Apple Unveils New iPhones, But Stocks End Little ChangedWall Street struggled for direction on Wednesday, initially pulled lower by lagging tech shares only to regain its footing on headlines that the U.S. is proposing a new round of trade talks with China. The S&P 500 finished just slightly higher (+0.04%), and the Dow added 0.1%. The tech-heavy Nasdaq underperformed, shedding 0.2%.
The heavily-weighted information technology (-0.5%) and financials (-0.9%) sectors, which make up roughly 40% of the broader market combined, kept the S&P 500 grounded despite gains from eight of its nine other groups. The consumer staples (+1.3%) and telecom services (+1.4%) sectors were the top performers.
Apple (AAPL 221.07, -2.78) unveiled a trio of new iPhones -- iPhone Xs ($999), iPhone Xs Max ($1099), and iPhone Xr ($749) -- at its annual product event, extending last year's high-end iPhone X line, which was created in celebration of the iPhone's 10th anniversary. The company also announced a new Apple Watch, the Series 4, that has better fitness tracking and new health features.
Shares of Apple were down going into the event and finished Wednesday lower by 1.2%, but remain up 30.6% for the year.
Elsewhere in the tech space, chipmakers sold off, pushing the Philadelphia Semiconductor Index lower by 1.2%. Micron (MU 41.74, -1.86) was particularly weak, with shares falling 4.3% after being downgraded to 'Neutral' from 'Buy' at Goldman. Separately, Snap (SNAP 9.20, -0.69) dropped 7.0% to a new all-time low after BTIG lowered its price target to $5 a share.
Looking at other markets, WTI crude futures extended Tuesday's rebound, climbing 1.4% to $70.18/bbl, helped by the weekly EIA inventory report, which showed that U.S. crude stockpiles declined by 5.3 million barrels last week. Meanwhile, U.S. Treasuries ticked higher, pulling the benchmark 10-yr yield, which hit a one-month high on Tuesday, down one basis point to 2.96%.
Also of note, Hurricane Florence continued moving towards the Carolina coast, but was downgraded to a still-powerful Category 3 storm.
Reviewing Wednesday's economic data, which included the Producer Price Index for August, the Fed's Beige Book, and the weekly MBA Mortgage Applications Index:
- Producer prices slipped 0.1% in August (consensus +0.2%), and core producer prices declined 0.1% (consensus +0.2%). Year-over-year, producer prices are up 2.8% (vs +3.3% in July) and core producer prices have risen 2.3% (vs +2.7% in July).
- The key takeaway from the report is that it will soothe some burgeoning inflation concerns, as the monthly declines led to a moderation in producer price inflation on a year-over-year basis. The latter point notwithstanding, the market is apt to maintain its view that the Federal Reserve remains on course to raise rates two more times this year.
- Reports from the Federal Reserve Districts suggested that the economy expanded at a moderate pace through the end of August. Dallas reported relatively brisk growth, while Philadelphia, St. Louis, and Kansas City indicated somewhat below average growth. Businesses generally remained optimistic about the near-term outlook, though most Districts noted concern and uncertainty about trade tensions, which prompted some businesses to scale back or postpone capital investment.
- The weekly MBA Mortgage Applications Index decreased 1.8% to follow last week's downtick of 0.1%.
Looking ahead, investors will receive the August Consumer Price Index, weekly Initial Claims, and the August Treasury Budget on Thursday.
- Nasdaq Composite +15.2% YTD
- Russell 2000 +11.7% YTD
- S&P 500 +8.1% YTD
- Dow Jones Industrial Average +5.2% YTD
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