>>> Essar Steel bid likely to be submitted by Posco

Essar Steel bid likely to be submitted by Posco

South Korean steelmaker Posco [KRX:005490] will likely submit a bid for acquiring the debt-burdened Indian steel company, EssarSteel , Business Standard reported, citing undisclosed merchant banking sources.
For FY16, ended 30 March 2016, Essar Steel had debt of INR 372.84bn (USD 5.84bn at current rates), the item noted.
Posco India's Managing Director, Gee Woong Sung, declined comment.
Other potential suitors for Essar Steel include Indian steelmakers TataSteel [NSE:TATASTEEL] and JSWSteel [NSE:JSWSTEEL], as well as global giant AcerlorMittal [AMS:MT].
Essar Steel is currently facing proceedings under the country's Insolvency and Bankruptcy Code, the paper added.
It was recently reported by Debtwire that Essar Steel is looking to raise around INR 25bn (USD 389.50m) in super-senior so-called interim financing under India’s new bankruptcy laws.

>>> What to look at today - 28th of August 2017

Asian equity markets are currently trading mixed, apparently largely ignoring the most recent North Korean missile launch, which was reported on early Saturday. In M&A news, US listed CBS announced that it would acquire Australia’s Ten Networks, which has already been placed into administration, for an undisclosed amount. In the currency markets, the Euro had gained by over 0.25% versus the US dollar, but has since pared gains. On Friday at Jackson Hole, ECB''s Draghi did not directly address currencies. Economic data points expected this week include Germany Aug Prelim CPI, EU Prelim Aug CPI, China Manufacturing PMI, Australia Q2 Private new Capex, Japan Q2 Capex and US ISM Aug Manufacturing and non-farm payrolls

Nikkei +0.73% Hang Seng +0.37% CSI +1.76% Shanghai +1.24% Shenzen +1.72%

Eur$ 1.1927 CNH 6.6343 CNY 6.6383 JPY 109.12 GBP 1.2885 CHF 0.9559 RUB 58.7032 WTI$ 47.66 -0.44%

S&P -0.15% EuroStoxx -0.44% FTSE Closed Dax -0.41% SMI -0.39%

Macro :
- U.S. Stocks Rally on Yellen’s Speech; Dow Higher, Dollar Drops
- Mnuchin Says Continuing to Revisit 2017 Target for Tax Overhaul
- S&P 500 Underpeformance Over Emerging Markets Tests Key Level
- French Fin. Min. Affirms Aim With Germany to Tax Internet Cos.

Keep an eye on :
- A2A IM : A2A CEO Sees Partnerships in North Italy, Not Acquisitions: Sole
- AB1 GY : Niki Lauda Interested in Buying Back His Former Airline: Kronen
- ALPH SW : Alpiq Forecasts Lower 2017 Operating Earnings Amid 1H Net Loss
- ATC NA : Altice to Buy Back up to EU1B of Shares in Next 12 Months
- AZN LN : AstraZeneca Plans Increase in U.K. Investment, Telegraph Says
- BAYN GY : J&J, Bayer’s Xarelto Given With Aspirin Cuts Heart Disease Risk --> +2.4% pre open
- BLT LN : BHP Is Said to Mull 25% Stake Sale in Canada Potash Mine: Rtrs
- EN FP : Bouygues Unit May Build Ho Chi Minh City Stadium, VIR Reports
- DMRE GY : Demire Seeks to Double Real Estate Portfolio: Boersen-Zeitung
- EIM IN : Eicher Motors’ Royal Enfield Starts Production at 3rd Plant
- EOAN GY : Turkey’s Sabanci, Germany’s E.ON Spin Off Energy Unit Enerjisa
- G IM : Generali to sell Portugal unit in October, has at least three suitors ( Liberty, Caravela and Zurich Insurance Group AG, Allianz )
- GOOG US : EU Is Said to Be Probing Google’s Flight, Hotel Services: Times
- GOOG US : Google Is Said to Be Issuing Refunds Over Fake Web Traffic: WSJ
- HAV FP : Havas Abandons FY Organic Growth Forecast; 1H Net Declines
- HAV FP : Vivendi And Havas Deal Closing Should Take Place Early October
- HTZ US : Weakness attributed to Xtract Research report that suggests Hertz's refinancing plan may be in violation of debt covenants, could lead to default (-7.87% with 3 times average daily volume)
- IMG LN : Canyon Bridge Is Said to Prepare Formal Bid for Imagination: Sky - http://bit.ly/2we5VHC
- KPN NA : Fox-IT, the Dutch cybersecurity company, is being eyed by telco KPN - De Telegraaf
- NAS NO : Norwegian May Move New Long-Haul Flights From Sweden Due to Tax
- NOVN VX ; Novartis’s Ilaris Cuts Heart Risk by Up to 15% in Cantos Study
- NOVOB DC : Novo’s Victoza Approved in US to Cut CV Risk in Type 2 Diabetes
- SNE US : Sony, Japan Cos. to Invest 50bn Yen in Calif. Incubator: Nikkei
- TUI1 GY : TUI Considers Expanding Cruise Operations With More Ships
- VIV FP : Vivendi And Havas Deal Closing Should Take Place Early October
- VOE GY : Voestalpine Expects to Make Up for Texas Plant Production Halt
- VOLVB SS : Volvo Cars May Buy Engines From Third Parties: Manager Magazin

>>> Asian Update

Asia Mid-Session Market Update: Gasoline Futures sharply higher on Harvey; US dollar pares losses after hitting 2.5 yr low vs Euro ahead of data heavy week

***Asia Summary***
- Asian equity markets are currently trading mixed, apparently largely ignoring the most recent North Korean missile launch, which was reported on early Saturday. In M&A news, US listed CBS announced that it would acquire Australia’s Ten Networks, which has already been placed into administration, for an undisclosed amount.
- In the currency markets, the Euro had gained by over 0.25% versus the US dollar, but has since pared gains. On Friday at Jackson Hole, ECB''s Draghi did not directly address currencies. Economic data points expected this week include Germany Aug Prelim CPI, EU Prelim Aug CPI, China Manufacturing PMI, Australia Q2 Private new Capex, Japan Q2 Capex and US ISM Aug Manufacturing and non-farm payrolls
- US NYMEX gasoline futures opened the session higher by over 6%, as companies including Exxon and Shell noted they would shut facilities located near Houston amid the impact of Harvey, which was downgraded to a tropical storm on Saturday. Shell said its Deer Park Texas refinery (up to 340K bpd) may be shut for up to 1 week.
- According to the National Hurricane Center (NHC),‘unprecedented' flooding is occurring over Southeastern Texas due to Harvey and it expects the center of the storm to move off the middle of Texas’ coast on Monday and wander just offshore through Monday night. The NHC also said the storm is expected to produce additional rainfall through Friday over parts of Texas.

***Speakers and Press***
- (EU) France could be willing to begin Brexit trade talks by Oct - UK Press
- (JP) BoJ Gov Kuroda: Reiterated policy to stay very accommodative; Does not think Q2 GDP growth rate of 4% can be sustained (update from Aug 25th)
- (JP) Japan PM Abe cabinet approval rating rises by 4 pct points to 46% - Nikkei
- (KR) Bank of Korea: Domestic markets stabilizing after turbulence in early Aug over North Korea tensions
- (NZ) New Zealand Wine Exports in June year +5.9% to NZ$1.66B (record high)
- (US) On Sunday, President Trump reiterated "we are in the NAFTA renegotiation process with Mexico, and Canada. Both being very difficult, may have to terminate?"

***Asian Equity Indices/Futures (00:30ET)***
- Nikkei flat, Hang Seng +0.5%, Shanghai Composite +0.9%, ASX200 -0.7%, Kospi -0.4%
- Equity Futures: S&P500 -0.1% ; Nasdaq -0.2% , Dax -0.2% , FTSE100 -0.2%

***FX ranges/Commodities/Fixed Income (00:30ET)***
- EUR 1.1921-1.1960; JPY 109.09-109.40; AUD 0.7927-0.7950; NZD 0.7236-0.7256
- Aug Gold +0.1% at 1,299/oz; Aug Crude Oil -0.4% at $47.68/brl; Sept Copper +0.5% at $3.07/lb
- GLD SPDR Gold Trust ETF daily holdings rise 5.91 tons to 805.2 tons
- (CN) PBOC SETS YUAN REFERENCE RATE AT 6.6353 V 6.6579 PRIOR (strongest yuan fix since Aug 19, 2016)
- (CN) China PBOC OMO injects CNY100B v skipped 7 and 14-day reverse repo prior; Net drain CNY100B v CNY130B drain prior
- (AU) Australia sells A$400M in 2.75% 2035 bonds, avg yield 3.1008%, bid to cover 4.16x
- (KR) Bank of Korea sells KRW900B in 1-year monetary stabilization bonds at 1.53 v 1.52% prior

***US markets on close (from Friday)
- Best Sector in S&P500: Real Estate +0.5%
- Worst Sector in S&P500: Technology flat
- At the close: VIX 11.28 (-0.95 pts); Treasuries: 2-yr 1.338% (flat), 10-yr 2.169% (-3bps), 30-yr 2.749% (-2bps)

***US Market Summary***(From Friday, Aug 25th)
- US stock markets commenced the week testing more than one month lows in most cases. The S&P found support just above the 100-day moving average on Tuesday. As Washington looked to put the controversy surrounding the President and his reaction to Charlottesville in the rear view mirror, rekindled hopes for genuine tax reform along with thin summer trading conditions were widely cited as fostering the turnaround. A host of late season retail earnings reports surpassed expectations which provided a boost to investor sentiment. The Russel 2000 led the way higher as investors placed bets small cap US centric businesses would get the most benefit from tax relief. For the week, the DJIA gained 0.7%, the S&P500 added 0.7%, and the Nasdaq rose 0.8%.
- The greenback retreated further led by strength in the Euro. The economic data, Europe’s in particular, continued to signal building economic momentum. By Friday when neither Fed Chair Yellen nor ECB President Draghi directly addressed monetary policy at the Jackson Hole symposium, the Euro hit fresh one and half year highs above 1.1920. Gasoline prices moved up late in the week as it became clear Hurricane Harvey would make landfall in southern Texas and bring with it up to 30 inches of rain.

>>> What to look at today - 26th & 27th of August 2017

Weekly Performance
Dow +0.64% S&P +0.72% Nasdaq +0.79% Russell +1.45% Mexico +0.58% brazil +3.43% EuroStoxx -0.22% FTSE +1,06% CAC -0.19% Dax +0.02% Ibex -0.39% MIB -0.31% SMI +0.36%Nikkei -0.09% Hang Seng +1.84% CSI +1.91%
US stock markets commenced the week testing more than one month lows in most cases. The S&P found support just above the 100-day moving average on Tuesday. As Washington looked to put the controversy surrounding the President and his reaction to Charlottesville in the rear view mirror, rekindled hopes for genuine tax reform along with thin summer trading conditions were widely cited as fostering the turnaround. A host of late season retail earnings reports surpassed expectations which provided a boost to investor sentiment. The Russel 2000 led the way higher as investors placed bets small cap US centric businesses would get the most benefit from tax relief. For the week, the DJIA gained 0.7%, the S&P500 added 0.7%, and the Nasdaq rose 0.8%.

Macro :
- U.S. Stocks Rally on Yellen’s Speech; Dow Higher, Dollar Drops
- Mnuchin Says Continuing to Revisit 2017 Target for Tax Overhaul
- S&P 500 Underpeformance Over Emerging Markets Tests Key Level
- French Fin. Min. Affirms Aim With Germany to Tax Internet Cos.

Keep an eye on :
- A2A IM : A2A CEO Sees Partnerships in North Italy, Not Acquisitions: Sole
- AB1 GY : Niki Lauda Interested in Buying Back His Former Airline: Kronen
- AZN LN : AstraZeneca Plans Increase in U.K. Investment, Telegraph Says
- BAYN GY : J&J, Bayer’s Xarelto Given With Aspirin Cuts Heart Disease Risk
- BLT LN : BHP Is Said to Mull 25% Stake Sale in Canada Potash Mine: Rtrs
- DMRE GY : Demire Seeks to Double Real Estate Portfolio: Boersen-Zeitung
- EIM IN : Eicher Motors’ Royal Enfield Starts Production at 3rd Plant
- EOAN GY : Turkey’s Sabanci, Germany’s E.ON Spin Off Energy Unit Enerjisa
- G IM : Generali to sell Portugal unit in October, has at least three suitors ( Liberty, Caravela and Zurich Insurance Group AG, Allianz )
- GOOG US : EU Is Said to Be Probing Google’s Flight, Hotel Services: Times
- GOOG US : Google Is Said to Be Issuing Refunds Over Fake Web Traffic: WSJ
- HAV FP : Havas Abandons FY Organic Growth Forecast; 1H Net Declines
- HAV FP : Vivendi And Havas Deal Closing Should Take Place Early October
- HTZ US : Weakness attributed to Xtract Research report that suggests Hertz's refinancing plan may be in violation of debt covenants, could lead to default (-7.87% with 3 times average daily volume)
- IMG LN : Canyon Bridge Is Said to Prepare Formal Bid for Imagination: Sky - http://bit.ly/2we5VHC
- KPN NA : Fox-IT, the Dutch cybersecurity company, is being eyed by telco KPN - De Telegraaf
- NAS NO : Norwegian May Move New Long-Haul Flights From Sweden Due to Tax
- NOVN VX ; Novartis’s Ilaris Cuts Heart Risk by Up to 15% in Cantos Study
- NOVOB DC : Novo’s Victoza Approved in US to Cut CV Risk in Type 2 Diabetes
- SNE US : Sony, Japan Cos. to Invest 50bn Yen in Calif. Incubator: Nikkei
- TUI1 GY : TUI Considers Expanding Cruise Operations With More Ships
- VIV FP : Vivendi And Havas Deal Closing Should Take Place Early October
- VOE GY : Voestalpine Expects to Make Up for Texas Plant Production Halt
- VOLVB SS : Volvo Cars May Buy Engines From Third Parties: Manager Magazin

>>> Orlebar Brown founder Adam Brown hires Cavendish Corp Fin to advise on inves

Orlebar Brown founder Adam Brown hires Cavendish Corp Fin to advise on investment options - report
27 AUG 2017
Orlebar Brown's founder Adam Brown has hired Cavendish Corporate Finance to advise on investment options for the UK-based swimwear company, The Sunday Telegraph reported. The newspaper did not cite a source for the information.
The report estimated that Orlebar Brown could sell for GBP 50m (EUR 54.0m). The company is likely to draw interest from buyout groups, the item said.
The report noted forecast turnover of GBP 23m this year for Orlebar Brown.
Piper Private Equity took a significant minority stake in Orlebar Brown in August 2013. Orlebar Brown is listed as a current investment on the Piper Private Equity website.

(ZH) Goldman "Unexpectedly" Exempt From Venezuela Bond Trading Ban



Goldman "Unexpectedly" Exempt From Venezuela Bond Trading Ban

When the White House announced on Friday that Trump had signed an executive order deepening the sanctions on Venezuela, and confirming the previously rumored trading ban in Venezuelan debt that earlier in the week had sent VENZ/PDVSA bonds tumbling, we made what we thought at the time was a sarcastic comment that in light of the recent scandal involving Goldman's purchase of Venezuela Hunger Bonds, that Lloyd Blankfein's hedge fund, which now controls the presidency and next year will also take over the Fed courtesy of Gary Cohn, would be exempt from the trading ban:
zerohedge @zerohedge
So all bonds owned by Goldman are exempt from the Venezuela sanctions until Goldman can sell them?
8:01 PM - Aug 25, 2017
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And, as it so often happens in a world controlled by Goldman (as a reminder, in 2018 the world's three most important central banks, the Fed, the ECB and the BOE will be run by former Goldman employees: Gary Cohn, Mario Draghi and Mark Carney), sarcasm has a way of chronically turning into truth, and as Bloomberg confirmed overnight, one of Venezuela's largest bondholders is "breathing a sigh of relief."
That would be Goldman Sachs Asset Management, which infamously bought $2.8 billion of notes issued by state oil company PDVSA in May, and has since faced sharp criticism for a deal that appeared to supply fresh funds to President Nicolas Maduro. Confirming our initial "sarcastic" reaction, while observers thought the Goldman bonds would be a prime target for new penalties, they were exempt from the order. In fact, the only bonds covered by the trading ban are notes due in 2036 that appear to never have been sold outside Caracas.
“That was somewhat surprising,” said Francisco Rodriguez, the chief economist at Torino Capital in New York. “I guess the logic is that those bonds are already in the hands of bondholders, so you wouldn’t be really blocking new financing.”
Actually no, Francisco, the logic is that if Goldman was forced to liquidate the bonds, or worse was stuck holding them as Venezuela went bankrupt, it would take a huge hit on the nearly $3 billion notional position. As such, Goldman's advisors to Trump made it quite clear that any sanctions against Venezuela would have to be Goldman Sachs revenue netural first and foremost.
That's precisely what happened.
Even more ironic is that the market immediately saw right through Trump's shallow attempt to "punish" Venezuela which however would exempt his top Wall Street advisory, and the market reaction across the board was fairly muted Friday, with both sovereign bonds and notes from Petroleos de Venezuela SA posting gains.
The gains on Friday -- with most notes up less than half a cent -- show investors’ relief after the Wall Street Journal reported earlier in the week that U.S. officials were considering a blanket ban on all trading in Venezuelan debt. Such a move would have left investors stuck holding debt that is considered among the world’s riskiest.
As described yesterday, the new executive order bans Venezuela from raising cash with new debt offerings, and prohibits transactions in older bonds held by government officials and entities... just not Goldman Sachs. The sanctions will likely force the oil-rich nation to reduce imports to conserve cash, thus deepening the already severe economic contraction in the country, according to Rodriguez.
In retrospect, it appears that Goldman will benefit not just once but twice from the latest Trump "sanctions" - the second time will be on the bank's long oil prop position (remember when the Volcker rule prevented banks from putting on proprietary positions for a few months back in 2010... good times) as oil is about to spike should Venezuela finally default: 
“There is also the concern that the order may push Venezuela over the brink and lead them to default,” Rodriguez said. “Certainly the more restrictions on financing that you place, the harder you make it for them to pay.”
Of course, Venezuela's default is just a matter of time, but it won't take place before Goldman dumps its bond holdings to some unwitting retail investor or some German widows and orphans: Goldman’s investing arm is the largest holder of bonds from Petroleos de Venezuela and the seventh-largest holder of Venezuelan sovereign debt as of June 30, according to data compiled by Bloomberg. Andrew Williams, a spokesman at Goldman Sachs Group Inc., declined to comment.