>>> US Treasury Sec Mnuchin: What was in the past G20 communique is not necessar

US Treasury Sec Mnuchin: What was in the past G20 communique is not necessarily relevant; the current communique has language on strengthening trade and reducing imbalances 
- Should not read too much into the change in G20 communique language; wanted to ensure that it reflected the issues that were discussed
- US wants to reduce trade deficits over time
- We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people. Having said that, we want to re-examine certain agreements.
- Both bilateral and multilateral agreements have their place

* German Fin Min Schaeuble: G20 Communique was adopted unanimously
- G20 trade discussions were complicated; there was broad consensus that open trade is necessary to strengthen global growth
- Not feeling pessimistic about future trade discussions despite difficult talks
- US was never isolated during the G20 talks; US remains indispensable in discussion of global problems
- Greece was not discussed at G20

* Bundesbank Pres Weidmann: no consensus at G20 meeting on further development of trade system
- Evaluation of financial market regulations does not mean rolling them back

* IMF's Lagarde: Global cooperation and pursuing the right policies can help achieve strong, sustained, balanced, and inclusive growth, while the wrong ones could stop the new momentum in its tracks
- There are signs that the global economy has reached a turning point, even though uncertainties remain

* Japan Fin Min Aso: No one at the meeting remarked that they were against free trade

>>> Teads in talks with News Corp after rejecting offer from Altice – report (tr

Teads in talks with News Corp after rejecting offer from Altice – report (translated)
18 MAR 2017
French-US privately-owned video advertising platform publisher and operator Teads is understood to be discussing a potential sale to New York-based News Corp [NASDAQ:NWS], French weekly Challenges reported. The unsourced report said that Teads has already rejected an offer from listed telco Altice [AMS:ATC], whose bid was believed to be lower.

FT : G20 drops vow to resist all forms of protectionism

G20 drops vow to resist all forms of protectionism
Watered-down commitment to free trade reflects Trump’s America First agenda

Finance ministers from the world’s biggest economies have dropped pledges to renounce protectionism in a meeting marked by tension over trade between the US and China.

G20 finance ministers meeting in the German resort town of Baden-Baden noted the importance of trade to the global economy, but dropped tougher language from last year that vowed to “resist all forms of protectionism”.


The new communique said: “We are working to strengthen the contribution of trade to our economies. We will strive to reduce excessive global imbalances, promote greater inclusiveness and fairness and reduce inequality in our pursuit of economic growth.”

The watered-down commitments on free trade reflected the anti-globalisation mood that Donald Trump has brought to Washington and came in the first G20 meetings between Steven Mnuchin, the new US treasury secretary, and his foreign counterparts.

While representatives from China were particularly vocal in urging forthright language on protectionism, the US was unwilling to comply, in a turnround from America’s traditional position as a standard-bearer for globalised capitalism.

Japan was said to be one of the few countries that struck a more supportive tone towards the US approach.

Wolfgang Schäuble, Germany’s finance minister, said: “It will take some time for the US finance ministry to come forward. It may be sensitive for some, for others less so. We really tried on all levels.

“We have reached an impasse,” he said. “That’s why at the end we said nothing on [avoiding protectionism], because it meant different things when we said we didn’t want protectionism.”

The mood from the US towards the G20 has shifted dramatically since the arrival of Mr Trump, whose America First economic strategy clashes with traditional promises that G20 leaders have willingly signed up to in the past. It heralds a harsher approach in US relations with its counterparts — as seen this week by the tense meeting between Mr Trump and Angela Merkel, the German chancellor, on Friday.

The haggling over the trade language went late into the meeting, underscoring strong feelings on both sides of the debate.

As late as noon on Saturday, there was speculation that the statement would make no mention of trade at all. The compromise was proposed by the Canadian delegation and backed by the presidency, held by the German delegation. Britain and other European delegations had sought strong language committing to a rules-based multilateral trading system.

However, several delegations wanted to avoid forcing the US Treasury into a corner so soon after Mr Mnuchin had taken office.

>>> Deutsche Bank : Reportedly DB is offering cheap debt to investors that agree

Reportedly DB is offering cheap debt to investors that agree to buy delinquent mortgages - press 
- As part of effort to comply with its $7.2B mortgage settlement with the US govt, DB is offering favorable financing terms to help investors and banks buy delinquent home loans. The settlement allows DB to get credit toward the settlement by lending to other entities that buy delinquent loans as long as those loans are later modified.

NY Post : Hedge funds close at faster pace in 2016 than 2009 recession

Hedge funds lost their mojo in 2016.

There were more hedge-fund closures last year than during the 2009 recession, according to data provided by HFR.

In 2016 1,057 funds shut down — slightly higher than the 1,023 funds that closed in 2009, although still well below the 1,471 that shuttered in 2008 during the onset of the financial crisis.

The closures came as several large public pension funds pulled their investments in hedge funds, saying that the funds’ subpar performance did not merit the high fees they charged.

“The hedge fund industry fee structure continues the process of evolving to meet increased investor demands,” Kenneth Heinz, president of HFR said in a statement Friday.

And despite the hedge fund industry topping $3 trillion for the first time ever, the number of new hedge funds launched fell short of crisis-era figures.

There were 729 hedge fund launches in 2016, fewer than the 784 opened in 2009 and dramatically less than the 968 launches in 2015.

>>> AkzoNobel could eye large-scale takeover or series of smaller acquisitions -

AkzoNobel could eye large-scale takeover or series of smaller acquisitions - report (translated)

AkzoNobel [AMS: AKZA] could eye a large acquisition, or a series of smaller ones, De Telegraaf noted in an analysis after the company rejected an approach by PPG Industries (NYSE:PPG) last week.
The previously announced strategic review and separation of AkzoNobel's specialty chemicals division, could yield up to EUR 12 to EUR 14bn, which would provide a sizeable war chest. In addition, AkzoNobel could obtain EUR 7bn in the short term, by issuing up to 20% additional shares and using up its credit lines.
The article cited Exane BNP Paribas analysts, who see a 40% chance that a sale of the Specialty Chemicals division will be used for not one, but a series of acquisitions including a payout to shareholders.
Another option, given a 20% chance by the analysts, is for Akzo to float its Specialty Chemicals division, in which case AkzoNobel would retain a stake in the business, the report noted.
A third option, with a 30% chance of occurring according to the Exane BNP analysis, is a private sale of the division, with proceeds to be used for one large-scale acquisition. In this case, Akzo could use its war chest to acquire US-based Axalta Coatings which is rumoured to be valued at around USD 11bn, the item added.
A successful takeover of AkzoNobel by PPG was given a 10% chance, owing to Akzo's protective structure and earlier rejection of PPG's overtures, according to the Exane BNP analysts, cited in the item.

WSJ : Two Italian Banks Seek State Aid to Stay Afloat

Two Italian Banks Seek State Aid to Stay Afloat
Banca Popolare di Vicenza and Veneto Banca plan to access government rescue scheme

ROME—Two midtier Italian banks said late Friday they have requested state aid to remain afloat, a widely expected outcome for two lenders that have teetered on the edge of collapse for more than a year.

Banca Popolare di Vicenza SpA and Veneto Banca SpA said in two separate statements they have told Italy’s Economy Ministry, the Bank of Italy and the European Central Bank they plan to access the so-called precautionary recapitalization—a rescue scheme which under European rules implies losses for shareholders and junior bondholders before public money is injected in the ailing banks.

The fate of the two banks has been in doubt since last year, after Atlante, a government-orchestrated backstop fund for lenders, bailed them out and took effective control over them.

To be recapitalized with public money the two banks must prove they are viable and a restructuring plan they are completing, which includes the merger of the two banks, must be approved by the European Commission.

A solution to the two banks’ woes would be a major step toward the stabilization of Italy’s banking system, which is struggling under the weight of €360 billion ($387 billion) in problematic loans, rock-bottom interest rates and low profitability.

In December, the Italian government set up a €20 billion fund that can be tapped by struggling banks to replenish their capital buffers or to help them raise liquidity by guaranteeing the issuance of bonds.

Banca Monte dei Paschi di Siena SpA has already asked to use this fund to help it plug a capital shortfall of nearly €9 billion.

A major issue for Vicenza and Veneto is that they risk up to €5 billion in legal costs stemming from losses that shareholders suffered after Atlante bailed them out.

The two banks, which weren’t listed, had sold shares to more than 200,000 customers, mostly retail investors. The Atlante bailout wiped out most of the value of those shares, sparking lawsuits from furious shareholders.


The banks are offering to return about 15% of the value of the shares to most shareholders.

Vicenza and Veneto said Friday that shareholders owning roughly half of the shares for which redress can be sought accepted, while many more showed interest in the proposed settlement.

Both banks need a high take-up for the offer—they both target a settlement with shareholders owning 80% of the shares by next week—to obtain state aid.

>>> US Close Dow -0.10% S&P -0.13% Nasdaq +0.00% Russell +0.40%

Closing Market Summary: Stocks Close a 'Wee Bit' Lower on St. Patrick's Day

Defying the spirit of St. Patrick's Day, the major averages failed to turn shamrock green, closing just a 'wee bit' below their flat lines. The Nasdaq finished flat while the S&P 500 and the Dow closed with losses of 0.1% apiece.

The bulls swiped up the majority of sectors on Friday, but the ones they left behind--financials (-1.1%), health care (-0.5%), energy (-0.1%), and consumer staples (-0.2%)--proved to be influential. The financial sector saw some belated selling pressure in the wake of this week's FOMC meeting as investors tried to sort out how the Fed's future outlook for interest rates will bake into the industry's bottom line.

On the other hand, the health care group got tripped up this morning on news that biotech giant Amgen's (AMGN 168.41, -11.70) new cholesterol drug Repatha didn't live up to expectations in a clinical trail. AMGN shares lost 6.5% of their value, which influenced the iShares Nasdaq Biotechnology ETF (IBB 295.28, -3.31) lower by 1.1%.

The lightly-weighted utilities (+0.6%), telecom services (+0.6%), and materials (+0.5%) sectors made a valiant effort to counter the heavy blow from the bears, but received little help from its peers; the technology (+0.1%) and consumer discretionary (+0.1%) sectors just couldn't piece together a truly solid performance as their top components deferred a leadership role in the cause.

News flow was relatively light on Friday, but it's worth pointing out that Secretary of State Rex Tillerson said all options are on the table, including military action, in countering North Korea's threat to the United States and its allies. Mr. Tillerson emphasized that the U.S. aims to avoid a military conflict, but made it clear that the "policy of strategic patience has ended."

Aerospace & defense names like Boeing (BA 180.10, +1.91), Lockheed Martin (LMT 271.98, +4.04), and Raytheon (RTN 156.97, +3.31) did their part to push the industrial sector (+0.4%) higher, but the sector's advance ultimately proved to be modest.

In the Treasury market, U.S. sovereign debt extended its week-to-date gain on Friday, leaving the benchmark 10-yr yield four basis points lower at 2.50%. For the week, the 10-yr yield lost eight basis points as investors relished in the Fed's more dovish than expected rate projections.

Friday saw a handful of economic reports, including February Industrial Production, February Leading Indicators, and the University of Michigan Sentiment Index for March, but their influence was minimal:

  • Industrial Production held steady in February (consensus 0.2%) while Capacity Utilization declined to 75.4% (consensus 75.4%) from a revised reading of 75.5% (from 75.3%) in January.
    • The key takeaway from the report is that it is not as disappointing as the headline suggests. Nevertheless, total industrial production is still weak, up just 0.3% year-over-year. The overall capacity utilization rate of 75.4% is 4.5 percentage points below its long-run average, which suggests there is ample overhead space still until production bottlenecks occur.
  • The Conference Board's Leading Indicators report for February ticked up 0.6% (consensus 0.5%) after a 0.6% increase in January.
    • The key takeaway from the report is that the index is at its highest level in over a decade after six consecutive monthly gains, fueling the underlying belief that economic growth in 2017 should be improving.
  • The preliminary reading of the University of Michigan Consumer Sentiment Index for March rose to 97.6 (consensus 96.8) from 96.3 in the prior month's reading.
    • The key takeaway from the report is that consumers are feeling better about their current personal finances; however, there appears to be a sharp divide about the outlook that cuts sharply across political partisan lines.

Investors will not receive any economic data on Monday.

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