*PARROT : IN TALKS W/ FAURECIA ON PARTNERSHIP FOR AUTOMOTIVE
*FAURECIA IN TALKS TO BUY 20% STAKE IN PARROT AUTOMOTIVE
*FAURECIA TALKS ON PARROT AUTOMOTIVE ENTERPRISE VALUE OF EU100M
*FAURECIA IN TALKS TO LIFT PARROT AUTO SHR TO 50.01% BY 2019
*FAURECIA: WOULD BE IN POSITION TO OWN ALL OF PARROT AUTO BY '22
Renzi allies join opponents to demand early elections in Italy
PD members see swift poll as best path to political comeback after referendum rout
Allies of Matteo Renzi, Italy’s outgoing centre-left prime minister, have joined opposition calls for fresh elections in the wake of his referendum defeat, making it more likely that the country will go to the polls to choose a new parliament next year.
Influential politicians in Mr Renzi’s Democratic party (PD) see early elections as a way to make a quick political comeback after a stinging reverse in Sunday’s vote on changes to Italy’s constitution.
“There’s a large front within the Democratic party which is pushing for this,” said one official close to Mr Renzi.
Parliamentary elections are not due until early 2018 but the scale of the defeat suffered by Mr Renzi, the 41-year-old former mayor of Florence, has triggered growing calls for voters to be allowed to pick a new leader with a strong political mandate as rapidly as possible.
Before the referendum the two leading anti-establishment opposition parties, the Five Star Movement and the Northern League, had urged new elections in the event of a No win. They have repeated those calls since the vote.
The fact that large parts of the PD now agree increases the likelihood that any interim government would most likely be shortlived and limited in its scope.
“We don’t want to waste any time,” said Ettore Rosato, a senior Democratic lawmaker in the lower house of parliament, on Italian television on Monday night.
Angelino Alfano, Mr Renzi’s centre-right interior minister, added that he could imagine elections as early as February. “I am increasingly convinced that . . . this legislature is coming to its conclusion,” he said.
Mr Renzi’s spokesman declined to say whether the prime minister had settled on this strategy. From the point of view of the Democratic party, support for early elections would help it to fend off any accusation that it wants to cling to power.
“These guys want to stick around for another year and a half,” said Matteo Salvini, the leader of the Northern League, on Italian television, arguing that such a plan was being hatched “on the phone lines between Rome and Brussels, Brussels and Rome”.
One obstacle for a move to quick elections is that this may face resistance from Sergio Mattarella, the Italian president who is the main powerbroker in the country’s politics and is known for being cautious.
A further difficulty from a practical point of view is that Italy’s electoral law for the lower house may first need to be changed, from a system that awards bonus seats to the winning party to one based on proportional representation. The electoral law is becoming increasingly unpopular with the main political parties and could in any case be struck down in a constitutional court ruling that is due in coming months.
Though some analysts have cautioned that talks on changing the electoral law could be long and complicated, Mr Rosato said that there were “all the tools” to move on it very quickly.
The debate over early elections will be at the top of the agenda as Mr Renzi meets members of his Democratic party on Wednesday in a showdown with leftwing dissidents seeking to oust him as party secretary.
Francesco Boccia, the head of the budget committee in the lower chamber of parliament, called on Monday for a renewal of the top ranks of the party.
Other PD members are expected to stick by Mr Renzi — potentially sparking a battle for the future of the party. “The left has been our main opponent and it’s nothing new. The past is coming back,” warned Francesca Puglisi, a PD senator from Bologna. “Tomorrow we have an important and delicate meeting, in which we will strongly ask our secretary Matteo Renzi to keep leading the Democratic party,” she added.
One of the difficulties for Mr Renzi in staying on as PD chief is that he would be forced to support the new government, which must take on some unpopular tasks, such as dealing with Italy’s troubled banks and negotiating a new electoral law. For this reason, Mr Renzi’s backers say he may want to move quickly to a party congress early in the year and then rapidly to new elections.
Early premarket gappers
Gapping up: TXMD +24.8%, DRYS +10%, COUP +9.5%, NVLS +5.9%, P +5.3%, BOBE +4.8%, ACHN +3.6%, RBS +3.4%, HSBC +3.4%, DB +2.5%, HOME +2.5%, BLCM +2.1%, PBR +1.7%, CS +1.7%, BCS +1.7%, SAN +1.7%, LYG +1.3%, BBVA +1.3%, IRTC +1.2%, BP +1.1%, AZO +1.1%, VOD +0.9%, AZN +0.8%
Gapping down: SB -17%, LXRX -12.5%, FET -7.3%, MIK -6.4%, STWD -4.4%, SBSI -3.8%, TEVA -3.7%, ASUR -3.7%, SGY -3.7%, RCII -3%, REI -2.9%, SIEN -2.8%, BBL -2.7%, GGB -2.6%, BHP -2.6%, MTL -2.5%, RIO -1.9%, LOGI -1.8%, X -1.6%, ZG -1.5%, GFI -1.3%, VALE -1.3%, FCX -1.3%, CVX -1.2%, MT -1.1%, NKE -1%, CLF -0.9%, CONN -0.9%
Find attached a calendar of Holidays
Dow +0.24% S&P +0.58% Nasdaq +1.01% Russell +1.79%
US mkt closed higher. Equity indices enjoyed an upbeat start, rising alongside European stocks, even though the results of the constitutional reform referendum in Italy will invite political uncertainty going forward. On Sunday, Italian citizens voted 59-41 to reject a proposal that would have reformed the country's Senate. Prime Minister Matteo Renzi offered his resignation, but Italian President Sergio Mattarella reportedly asked Mr. Renzi to delay his departure until after the approval of a budget for 2017. It is currently unclear what impact the results of the referendum will have on rescue plans for Banks. Italian stocks erased the bulk of their losses by the close while European sovereign debt retreated with Italy's 10-yr yield spiking nine basis points to 2.00%. Five of six cyclical sectors displayed relative strength from the start, which kept the benchmark index well above its flat line throughout the day. volume were just below average a 915mil shares. US After Hours COUP +7%, BOBE +6% following earnings/guidance... SB -13%, SBSI -9%, FET -5% following offering news. ed's Dudley (dove, FOMC voter): Favor gradually higher rates if growth keeps up; financial market conditions are broadly appropriate. Fed's Evans (dove, non-voter): expects US growth in H2 to be much stronger than H1 2016. Asia indices rally, taking cue from US markets shrugging off Italian political uncertainty following Sunday referendum. USD majors in narrow ranges, while commodity/EM currencies (CNH, MXN, SGD) retreat against the dollar after several days of strength.
Nikkei +0.47% Hang Seng +0.69% CSI -0.30% Shanghai -0.16%
Eur$ 1.0756 CNH 6.8780 CNY 6.8764 JPY 113.81 GBP 1.2754 CHF 1.0063 RUB 63.80 |WTI 51.45-0.66%
S&P -0.06% EuroStoxx +0.20% Dax +0.02% FTSE -0.10% SMI +0.08%
Macro
Schaeuble Real Estate Bubble Law Draws Opposition: Handelsblatt
S&P 500 Seen Reaching 2,343 in 2017 at Ned Davis With Risk in 2H
Keep an eye on :
- ABN NA : ABN Amro Agrees to Sell Asia/Mideast Private Banking to LGT
- ATLN VX : Sanofi Said to Explore Counterbid for Actelion Amid J&J Talks
- AMZN US : Germany Probes Tax Misuse of Amazon Marketplace: Handelsblatt
- BMPS IM : Paschi Says Capital Increase to Be as Much as EU1.03b
- BMPS IM : Paschi Executives to Meet ECB on Capital Plan Today: Il Sole
- BMW GY : BMW to Test Fully-Computerized Vehicles in Munich Next Year: SZ
- BVI FP : Bureau Veritas Plans to Hire 10,000 Globally in 2017: Figaro
- FWB IM : Fastweb Buys Tiscali Business for EU45m, Leases Mobile Spectrum
- GNFT FP : France’s Genfit Said to Consider a Sale as It Weighs Options
- ITX SM : Inditex’s Main Online Units Have 39% Sales Increase: El Pais
- MAERSKB DC : Oil Bosses See Maersk Withdrawing From Norway North Sea: Borsen
- SAN FP : Sanofi Said to Explore Counterbid for Actelion Amid J&J Talks
- STL NO : Statoil Won’t Fly Super Puma Helicopters Again: Aftenbladet
- FP FP : Total, ExxonMobil, Cnooc, Pemex Win Mexico Deep-Water Blocks
- WOS LN : Wolseley 1Q LFL Revenue Growth 1.8%; Sees FY Profit In Line
>>> Up
*EFG International Raised to Buy at Citi, PT CHF6.40
*Enav Raised to Overweight at Barclays, PT EU3.90
*Engie Raised to Buy at HSBC, PT EU13.60
*Gas Natural Raised to Hold at Investec, PT EU16
*HSBC Raised to Equal-Weight at Morgan Stanley, PT 645p
*Infineon Raised to Buy at Citi
*OneSavings Bank Raised to Outperform at RBC, PT 355p
*Redrow Raised to Buy at Canaccord, PT 480p
*Rexel Raised to Buy at Citi
*SocGen Raised to Overweight at Morgan Stanley, PT EU49.20
*UBS Raised to Overweight at Morgan Stanley, PT CHF20
>>> Down
*Berendsen Cut to Sell at Stifel, PT 710p
*Coca-Cola European Cut to Hold at Stifel, PT EU32
*Electrolux Cut to Neutral at Citi
*Legal & General Cut to Underperform at Macquarie
*Mitchells & Butlers Cut to Equal-Weight at Morgan Stanley
*Total Cut to Hold at Deutsche Bank
*Tullow Cut to Sell at Goldman
>>> PT Change
>>> Initiation
*Altice Rated New Buy at Oddo & Cie, PT EU23.50
*Bacanora Minerals Rated New Buy at Liberum, PT 120p
*ConvaTec Group Rated New Neutral at Credit Suisse, PT 250p
*ConvaTec Group Rated New Sector Perform at RBC, PT 242p
*ConvaTec Group Rated New Equal-Weight at Morgan Stanley
*ConvaTec Group Rated New Buy at Goldman, PT 270p
*ConvaTec Group Rated New Overweight at JPMorgan, PT 271p
*ConvaTec Group Rated New Buy at BofAML, PT 280p
*ConvaTec Group Rated New Buy at Peel Hunt, PT 300p
*Merlin Rated New Buy at Peel Hunt, PT 510p
*Natixis Rated New Neutral at UBS, PT EU4.40
*ConvaTec Group Rated New Buy at UBS, PT 300p
*Yoox Net-a-Porter Rated New Outperform at Macquarie, PT EU33.50
>>> Call
>> Stock
**INFINEON ADDED TO CITI FOCUS LIST, EXPERIAN REMOVED
*MERCK KGAA EXITS ALPHA LIST AT BANKHAUS LAMPE