>>> What to look at today - 18th of October 2016

Dow -0.29% S&P -0.30% Nasdaq -0.27% Russell -0.17% VIX 16.21 +0.56% VXX 34.89 -0.48%
US Market closed lower on Risk off approach ahead of ECB Thursday. downturn in yields offered support to beleaguered "yield play" sectors -- utilities (+0.6%), telecom services (+0.2%), and real estate (+0.1%) -- but also weighed on the heavily-weighted financial group (-0.4%). Seven sectors ended in the red with consumer discretionary (-0.8%), energy (-0.4%), consumer staples (-0.4%), and financials (-0.4%) acting as the largest laggards. volume were below average with only 693mil shares traded. US After Hours NFLX +20%, TACO +8% following earnings/guidance, CXW +5.6% lifting after contract and guidance updates, SEE +1% on spin-off news... IBM -3% following earnings/guidance, V -1.4% CEO succession plan. In Asia, RBA Gov Lowe spoke at Citi's annual Australia Investment Conference, reiterating RBA is monitoring employment and financial stability for impact from prior rates. Lowe also views full employment threshold to be around 5% - below 5.6% most recent figure. China Commerce ministry upbeat that trade conditions can stabilize despite gloomy global environment; Recall China Sept trade surplus fell to a 6-month low and exports contracted by 10% - the biggest decline in 7 months.

Nikkei +0.28% Hang Seng +1.50% CSI +1.16% Shanghai +1.17%

Eur$ 1.1013 CNH 6.7458 JPY 104 GBP 1.2225 CHF 0.9882 RUB 62.9780

S&P +0.38% EuroStoxx +0.73% Dax +0.62% FTSE +0.48% SMI +0.38%

Macro :
- David Tepper ’Pretty Light’ in Stock Market Right Now
- Greece Submits Draft Law for OTE Shares Transfer to Asset Fund

Keep an eye on :
- ATLN VX : Actelion Says It’s in Talks to Find Partner for Malaria Drug
- AI FP : Air Liquide Expands Relationship W/ Axion Energy, Invests EU55m
- ALV GY : Allianz Investing in Second-Hand Car Platform, Die Welt Reports
- ALV GY : Pimco’s Assets Reach $1.55 Trillion, Two Years After Gross Exit
- AZN LN : AstraZeneca Reverses Earlier Loss Amid Twitter M&A Speculation
- BAS GY : BASF Says Fire at Ludwigshafen Site Has Been Extinguished
- BAYN GY : Bayer’s Euphoria Around New Cancer Drug Met With Skepticism
- BVI FP : Bureau Veritas 3Q Revenue Slides; 2016 Outlook Reduced
- CBK GY : Commerzbank to Make 88% of Planned Job Cuts in Germany, BZ Says
- CON GY : Continental Sees Automotive Group Ebit Significantly Lower Y/y
- COTY US : Coty to Buy ghd for About $510m; Sees Immediately Accretive
- BN FP : Danone 3Q LFL Sales Growth 2.1% vs Est. 2.4%, Confirms Outlook
- ENG SM : Enagas 9M Ebitda Falls 6.1% to EU643.3M, Revenue Declines 2.3%
- ENEL IM : Enel to Invest About $500M in New Wind Park in Missouri
- GALN VX : Swiss Merger Body Probing Acquisition by Galenica Unit Galexis
- GAS SM : Gas Natural Readies Sale of Madrid Real Estate, Expansion Says
- SRG IM : Italgas to Present New Plan Next Wk Before IPO: Snam CEO to Sole
- LHA GY : Lufthansa, Brussels Air Seek M&A Agreement in Next Weeks: Belga
- LHA GY : Lufthansa Could Acquire Condor Without Antitrust Problems: SZ
- MAERSKB DC : Maersk to Adopt New Rules on Scrapping Ships, Politiken Reports
- NOVOB DC : Novo Nordisk Gains; Selling Overdone: Raised to Buy at Mirabaud
- RCO FP : Remy Cointreau 2Q Organic Sales Growth Beats Ests.
- RYA LN : *RYANAIR REDUCES FY17 GUIDANCE BY 5%
- SHP LN : Shire Says FDA Updates Vyvanse Label to Include Maintenance
- SHP LN : Shire Granted EU Marketing Authorization of Onivyde
- GLE FP : SocGen Said to Put Planned Internal London Transfers on Hold: FT
- TEVA IT : Teva May Buy Celltrion to Bolster Biosimilar Portfolio: Investor
- TWTR US : Disney Said to Have Dropped Twitter Pursuit Partly Over Image
- V US : Visa Says CEO Charlie Scharf Resigning; Names Alfred Kelly CEO
- VOW3 GY : VW Seeks Final Approval of Emissions Deal Without Fix in Hand
- VOW3 GY : VW Labor Chief Wants Investment in Electric-Car Batteries: SZ
- VOW3 GY : VW’s Audi to Delay Tech Projects to Cut Costs: Reuters
- WHL LN : *AMAYA AND WILLIAM HILL WILL NO LONGER PURSUE MERGER

>>> Europe : Brokers Upgrades & Downgrades - 18th of Ocotbre 2016

>>> Up
*GALAPAGOS RAISED TO BUY AT GOLDMAN
*INFORMA RAISED TO BUY VS HOLD AT INVESTEC
*KVAERNER ASA RAISED TO ’BUY’ AT ARCTIC SECURITIES
*LEG IMMOBILIEN RAISED TO BUY AT ABN AMRO
*MAIL.RU RAISED TO NEUTRAL AT JPMORGAN
*NOVO NORDISK RAISED TO BUY VS SELL AT MIRABAUD

>>> Down
*BNP PARIBAS CUT TO NEUTRAL AT UBS
*HEIDELBERGCEMENT CUT TO HOLD VS BUY AT BERENBERG
*SUEDZUCKER CUT TO REDUCE AT KEPLER CHEUVREUX
*TARKETT RATED NEW BUY AT NATIXIS

>>> PT Change


>>> Initiation
*POXEL RATED NEW BUY AT JEFFERIES
*SNAM RATED NEW OVERWEIGHT AT BARCLAYS, PT EU5.5
*ZEGONA RATED NEW OUTPERFORM AT MACQUARIE, PT 150P

>>> Call
>> Stock
*DEUTSCHE POST ADDED TO ALPHA LIST AT BANKHAUS LAMPE
*INNATE PHARMA REMOVED FROM GOLDMAN SACHS CONVICTION BUY LIST
*VONOVIA EXITS ALPHA LIST AT BANKHAUS LAMPE

>>> Asian Update

Asia Mid-Session Market Update: RBA Gov Lowe and Oct Minutes more upbeat while monitoring housing; New Zealand CPI tops forecasts

***US Session Highlights***
- (US) OCT EMPIRE MANUFACTURING: -6.80 V +1.00E; prices paid highest since 2014
- (US) SEPT INDUSTRIAL PRODUCTION M/M: 0.1% V 0.2%E; CAPACITY UTILIZATION: 75.4% V 75.6%E
- (US) Fed Vice Chair Fischer: low rates make the economy more vulnerable to shocks; global factors are contributing to depressing US interest rates - comments in NY
- Hasbro shares shine after Q3 results and positive 'Star Wars' outlook
- WHR: Association of Home Appliance Manufacturers (AHAM) reports Sept US shipments of major home appliances +5% y/y - press

***US markets on close: Dow -0.3%, S&P500 -0.3%, Nasdaq -0.3%***
- Best Sector in S&P500: Utilities
- Worst Sector in S&P500: Services
- Biggest gainers: HAS +7.4%, VMC +2.6%, NEM +2.4%, ILMN +2.3%, FE +2.3%
- Biggest losers: SWN -3.3%, CHK -3.3%, HPQ -3.1%, DVN -3.0%, WDC -3.0%
- At the close: VIX 16.21 (+0.1pts); Treasuries: 2-yr 0.82% (-2bp), 10-yr 1.76% (-3bp), 30-yr 2.52% (-4bp)

***US movers afterhours***
- NFLX +19.7%: Reports Q3 $0.12 v $0.06e, R$2.29B v $2.28Be
- TACO +8.9%: Reports Q3 $0.13 v $0.12e, R$104.4M v $101Me
- SPLS +1.6%: Said to be in talks with Cerberus about European operations (about 200 stores) - financial press
- F +0.1%: Plans shutdown at four plants in next weeks to align production with demand and inventory goals - press
- V -1.0%: Announces CEO Succession plan effective December 1, 2016
- IBM -3.0%: Reports Q3 $3.29 v $3.21e, R$19.2B v $19.0Be

***Asia Session Notable Observations, Speakers and Press***
- RBA Gov Lowe spoke at Citi's annual Australia Investment Conference, reiterating RBA is monitoring employment and financial stability for impact from prior rates; Also hints next week's quarterly CPI will be closely watched for progress on returning to 2-3% target. Recall the Q2 y/y CPI was a multi-year low of 1%. Lowe also views full employment threshold to be around 5% - below 5.6% most recent figure.
- RBA Oct meeting minutes offer few forward looking policy details, reiterating there's considerable uncertainty in labor and housing markets. Recall the property sector received some added attention in the Oct decision for signs of imbalances amid extra-low period of interest rates, as RBA acknowledged greater caution for lending, decline in turnover, slowing rate of appreciation, and growth in rents being the smallest in decades.
- New Zealand Q3 CPI at 0.2% on both q/q and y/y basis tops forecasts; Annual inflation saw tradeable prices fall over 2%, though housing inflation was up over 6%; Annualized CPI has now been below 1-3% target range for 2 years, but the slight beat reduces probability of another RBNZ rate cut in Nov by about 5pts to just under 80%.
- China Commerce ministry upbeat that trade conditions can stabilize despite gloomy global environment; Recall China Sept trade surplus fell to a 6-month low and exports contracted by 10% - the biggest decline in 7 months
- USD under pressure as US Treasury yields come in; Technical factors of preserved trendlines in the DXY and the 10-year cited.
- Netflix spikes about 20% afterhours on much stronger Q3 results and guidance, as total streaming adds of 3.57M exceeded 2.3M forecast; IBM down about 3% despite the beat on top and bottom line as gross margins shrink 200bps amid the shift to cloud computing.

***Asia Key economic data:***
- (NZ) NEW ZEALAND Q3 CPI Q/Q: 0.2% V 0.0%E; Y/Y: 0.2% (below target range for 2 years, 3-quarter low) V 0.1%E
- (AU) AUSTRALIA SEPT NEW MOTOR VEHICLE SALES M/M: 2.5% v 0.1% PRIOR; Y/Y: 0.8% v 2.8% PRIOR

***Asian Equity Markets (23:30ET)***
- Nikkei +0.1%, Hang Seng +0.8%, Shanghai Composite +0.5%, ASX200 +0.4%, Kospi +0.3%

***FX ranges/Commodities/Futures/Fixed Income (23:30ET):***
- EUR 1.0995-1.1025; JPY 103.70-103.90; AUD 0.7625-0.7675; NZD 0.7130-0.7190
- Dec Gold +0.3% at 1,260/oz; Crude Oil +0.6% at $50.25/brl; Copper +0.4% at $2.11/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 1.8 tonnes to 967.2 tonnes; highest since Aug 13th (4th straight increase)
- Equity Futures: S&P e-mini +0.3%, Dax +0.3%, FTSE100 +0.1%
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.7303 V 6.7379 PRIOR
- (CN) PBOC to inject CNY40B in 7-day reverse repos and CNY40B in 14-day reverse repos
- (AU) Australia MoF (AOFM) sells A$100M in 1.25% 2040 Bonds; avg yield: 0.7169%; bid-to-cover: 2.91x

***Asia movers***
Notable movers by sector:
- Consumer discretionary: Chow Tai Fook Jewellery Group 1929.HK -1.5% (Q2 result); Toho Co 9602.JP -2.4% (raises guidance); Crown Resorts CWN.AU +2.3% (Deutsche Bank raised to Buy)
- Consumer staples: Daio Paper Corp 3880.JP +1.5% (H1 result speculation); Woolworths WOW.AU +0.4% (Caltex confirms interest in petrol stations business), CTX -3.6%
- Financials: Challenger Financial Services Group CGF.AU +6.7% (Q1 result)
- Industrials: Guangzhou Automobile Group 2238.HK +0.2% (Sept result); Honda Motor Co. 7267.JP -0.1% (new assembly plant in China); Aurizon Holdings AZJ.AU -1.8% (affirms guidance)
- Technology: Sharp Corp 6753.JP +1.4% (health venture speculation)
- Materials: Regis Resources RRL.AU +4.1% (upgraded to buy from hold at Bell Potter); Whitehaven Coal WHC.AU -0.3% (Credit Suisse cuts to underperform); Formosa Petrochemical Corp. 6505.TW -1.0% (Nomura cuts to neutral)
- Energy: China Coal Energy 1898.HK +1.4% (Sept result); Oil Search OSH.AU +1.4% (Q3 result)
- Healthcare: Sonic Healthcare SHL.AU +1.0% (affirms guidance); AWE AWE.AU -2.4% (affirms guidance)

>>> US After Hours Summary: NFLX +20%, TACO +8% following earnings/gui


After Hours Summary: NFLX +20%, TACO +8% following earnings/guidance, CXW +5.6% lifting after contract and guidance updates, SEE +1% on spin-off news... IBM -3% following earnings/guidance, V -1.4% CEO succession plan

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: NFLX +19.9%, TACO +8%, CXW +5.6% (announced that ICE amended contract with lower fixed payment/extension at the South Texas Family Residential Center; guides Q3 FFO in-line, FY16 light with FY17 above estimates), CE +3.8% (also announced to acquire Italy based SO.F.TER; terms not disclosed), GIG +1.5%

Companies trading higher in after hours in reaction to news: TWMC +16% (thinly traded and ticking higher --  to acquire digital marketplace retail company etailz for approx $75 mln in cash and stock; to be accretive in first full fiscal year), RECN +8.9% (intends to commence a modified 'Dutch auction' tender offer to purchase up to approximately 6 mln shares of its common stock at a price per share not greater than $16.00 nor less than $13.50), SPLS +2.3% (Staples higher in after hours following UK Telegraph story suggesting Cerberus may purchase its UK retail stores), SEE +1% (Sealed Air to pursue spin-off of Diversey Care and related hygiene business; reached a mutual agreement to end the existing business relating to Sealed Air's distribution of SCJ branded products), DEPO +0.8% (DepoMed and Starboard announce settlement agreement; Depomed Board to include three new independent directors, Starboard to withdraw request for Special Meeting), GEO +0.8% (CXW sympathy), AMZN +0.7% (higher with NFLX/tech names; also announced Cloud now available to customers from data centers in Ohio), SCTY +0.5% (has created a new fund to finance more than $300 mln in solar projects with Credit Suisse)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: BMI -6.5% (light volume), IBM -3.1%, CPSS -1%

Companies trading lower in after hours in reaction to news: NKTR -4.3% (announces a $175 mln underwritten public offering of common stock), V -1.4% (Visa CEO Charlie Scharf resigns effective December 1; co has appointed former American Express President Alfred Kelly, Jr. as CEO), JNJ -0.4% (Pfizer to begin shipment of INFLECTRA for injection, a biosimilar of Janssen's Remicade to wholesalers in the U.S. in late November), FBHS -0.2% (light volume; downgraded to Sector Weight from Overweight at KeyBanc)

>>> US Close


Closing Market Summary: Bond Yields and Stocks Retreat

The major averages began the week on a modestly lower note as participants preferred a risk-off approach ahead of key economic data and a barrage of corporate earnings reports. The Dow Jones Industrial Average (-0.3%) settled in-line with the S&P 500 (-0.3%) and the Nasdaq Composite (-0.3%).

Equity indices and U.S. Treasury yields ticked lower at the beginning of the week as below-consensus economic data and a mixed set of corporate earnings came into focus. Treasuries were in demand following worse than expected readings of the Empire Manufacturing Survey for October and the Industrial Production/Capacity Utilization Report for September.

Treasuries continued inching higher throughout the session, leading to a flattening in the yield curve. The yield on the 2-yr note settled lower by two basis points (0.82%) while the yield on the benchmark 10-yr note finished lower by four basis points (1.77%). The yield spread between the 2-yr and 10-yr narrowed to 95 basis points after finishing last week at 97 basis points. 

The downturn in yields offered support to beleaguered "yield play" sectors -- utilities (+0.6%), telecom services (+0.2%), and real estate (+0.1%) -- but also weighed on the heavily-weighted financial group (-0.4%).  

Headwinds from a flattening yield curve and weaker-than-expected economic data masked above-consensus results from Charles Schwab (SCHW 31.69, -0.28) and Bank of America (BAC 16.05, +0.05). Meanwhile, Dow component Goldman Sachs (GS 169.00, -1.52) finished behind the price-weighted average ahead of tomorrow morning's quarterly report. 

Seven sectors ended in the red with consumer discretionary (-0.8%), energy (-0.4%), consumer staples (-0.4%), and financials (-0.4%) acting as the largest laggards. 

In the consumer discretionary space (-0.8%), restaurant names underperformed as Chipotle Mexican Grill (CMG 394.35, -9.79) declined by 2.4%. The stock was under pressure after having its price target lowered to $372 from $405 at Nomura. Meanwhile, Netflix (NFLX 99.80, -1.67) fell 1.7% ahead of this evening's quarterly report. Fellow F.A.N.G. member Amazon (AMZN 812.97, -9.99) also weighed despite receiving a price target increase at Credit Suisse.

The Dow Jones Transportation Average (-0.4%) finished behind the broader market as J.B. Hunt Transport Services (JBHT 78.45, -1.57) displayed relative weakness. The stock fell 2.0% after missing bottom-line estimates for the quarter. Meanwhile, United Continental (UAL 53.03, -0.17) ended lower by 0.3% ahead of this evening's quarterly report.

Health care plan providers underperformed in the health care space (-0.2%) as Anthem (ANTM 118.28, -2.81) fell 2.3%. The stock was downgraded to "Neutral" from "Overweight" at JP Morgan. Biotechnology finished ahead of the broader market, but the iShares Nasdaq Biotechnology ETF (IBB 265.72, -0.36) extended its monthly loss to 8.1%

Today's trading volume fell below the recent average of 859 million as 693 million shares changed hands at the NYSE floor.

Today's economic data included October Empire Manufacturing and the Industrial Production and Capacity Utilization Report for September: 

  • Industrial production increased just 0.1% in September (consensus +0.2%) after declining a downwardly revised 0.5% (from -0.4%) in August.
  • The capacity utilization rate increased to 75.4% (consensus 75.6%) from a downwardly revised 75.3% (from 75.5%).
  • The Empire State Manufacturing Survey fell to -6.8 in October (consensus +2.0) from -2.0 in September.

Tomorrow's economic data will include CPI for September (consensus 0.3%) and the NAHB Housing Market Index for October (consensus 59.0), which will cross the wires at 8:30 ET and 10:00 ET, respectively. The day's data will be capped off with the 16:00 ET release of Net Long-Term TIC Flows for August. 

  • Russell 2000: +6.6% YTS 
  • S&P 500: +4.0% YTD
  • Nasdaq Composite : +3.8% YTD
  • Dow Jones: +3.8% YTD

>>> Louis Vuitton set to buy Pinarello

Louis Vuitton set to buy Pinarello

 

Negotiations underway as LVMH Group seek to enter high-end sports market

LVMH Moët Hennessy Louis Vuitton SE, better known as LVMH Group, is set to purchase the Italian bike brand Pinarello, according to a report on Tuttobiciweb.it. The European multinational luxury goods conglomerate headed by Bernard Arnault is looking to branch out into the sports and wellness markets.

LVMH Group is best known for its high-end brands Louis Vuitton fashion and handbags, Moet & Chandon champagnes, along with a wide range of luxury brands in the clothing, cosmetics, fashion accessories, jewellery, perfumes, spirits, watches and wines arena. However, according to the report, LVMH Group is interested in expanding into the sports, wellness and leisure markets with cycling's prominent brand Pinarello as its primary purchase objective.

 

The Pinarello brand was founded by Nani Pinarello, whose son Fausto Pinarello has been president since 1977. The company currently manufactures bicycles for the road, track and cyclo-cross, but its prized product is the F8 Dogma that ranges from €10,000 to €12,000. Pinarello is also involved in tourism and owns prime holiday real-estate along with luxury holiday and travel brand Pinarello Travel and the Pinarello Granfondo 'La Pina'.

 

LVMH Group was also attracted by the bike brands presence in professional cycling based on its equipment sponsorship of Team Sky, team of Tour de France winner Chris Froome. In July, Pinarello and Team Sky extended its partnership for a further four years.

 

Negotiations for the purchase began several months ago by a firm in Milan between the Treviso-based Pinarello and LVMH Group, and what needs to be settled on is only the final sale price, however, the deal could be complete soon. If the transaction becomes official, Fausto Pinarello will remain the CEO of the brand.

http://www.cyclingnews.com/news/louis-vuitton-set-to-buy-pinarello/?utm_content=buffer70d7c&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer

http://www.tuttobiciweb.it/index.php?page=news&cod=94940&tp=n

Louis Vuitton courtise Pinarello. La société vélo Treviso est dans le collimateur du groupe LVMH, dirigé par l'entrepreneur Bernard Arnault, supercolosso luxe qui possède les marques les plus connues, de Louis Vuitton Moet & Chandon, de Kenzo à Dior, aux maisons suisse montres et chronomètres.

la négociation est initiée, menée par la société de Trévise par un studio dédié à Milan et pourrait bientôt améliorer. retenue maximale sur ITER, et le montant de la transaction. Mais il ressemble à un croisement LVMH s'ouvre le nouveau bord de luxe dans le sport, bien - être et de loisirs. Il a identifié le Trevisan la marque d'acquérir, ou de vérifier pour les vélos.

Les négociations - est né il y a quelques mois - il a été précédé par une réorganisation très délicate et complexe de la société holding de la famille: une grande petite galaxie étirement du contrôle de la société aux activités immobilières, la société en charge des voyages à la gestion des terres et d' autres actifs, les placements en actions dans d' autres sociétés, y compris Andrea Pina onlus Fondation. E 'était Fausto Pinarello - le fils aîné du fondateur Nani Pinarello - Pinarello actuel président de la société depuis 1977, pour gérer cette étape, avant la négociation avec le géant trans, qui ouvre sans aucun doute une nouvelle frontière.

 

Concentrés des marques de luxe, de la mode à l' alcool, de parfums aux montres, LVMH peut maintenant ouvrir la voie à un nouveau segment, celui du sport haut de gamme. À l' appui , il y aurait des partenaires américains.

Et il n'y a pas de doute que les derniers produits par les joyaux de l'avenue République - principalement la F8 Dogme, la «Ferrari des bicyclettes" - représente tout ce qui est la plus avancée dans le monde des deux roues. Avec des coûts en fonction de la performance, et la recherche de salut-technologie , ils sont en amont, allant de 10 à 12 mille euros pour un modèle.

Fausto Pinarello, si la transaction aboutit, restera à la tête de l'entreprise, cycles Pinarello, dont il est aujourd'hui président. Sa position serait de chef de la direction, toujours avec pleins pouvoirs. Les rumeurs disent aussi que rien ne changerait dans les stratégies des entreprises et des grands événements politiques ( en particulier le Pina, l' un des plus célèbre marathon dans le monde), et aussi dans le partenariat et le parrainage technique, qui est maintenant ajouté l'exposition de Marco Goldin sur les impressionnistes, avec beaucoup d'événements parallèles.

un signe de reconnaissance du fait que le luxe trans géant donne à l'entreprise Treviso, impostasi comme l' un des principaux acteurs, et scellé ces dernières années par la collaboration technique avec Sky cuirassé.

l'entrepreneur, dans le récent travail de restructuration à la détention, il a agi en respectant les actions de la famille, avec la division entre les quatre héritiers directs. Alors Ida Gobbo, la veuve du légendaire patriarche nain, qui est mort en 2014 à 92 ans; Gloria, veuve du troisième enfant, Andrea, qui est mort à seulement 40 ans en 2011, est mort à la fin d'une course cycliste dans le Frioul; et deuxième fille Carla Pinarello, soeur de Fausto. L'

année dernière , il y avait une autre réorganisation corporative, tout à l' intérieur de l'entreprise. Ils étaient sortis Roberto Della Pietà, épouse Carla Pinarello, et son fils Nicola Della Pietà, d' abord les gestionnaires de la famille désignés pour soutenir Fausto, après la mort prématurée de Andrea. En substance, les actifs de la dynastie avaient été signalés tout au long des héritiers directs de Nani. Avec le résultat que maintenant le senior et junior Della Pietà ont emménagé dans le domaine de Prosecco organique, avec le champion cycliste Marzio Bruseghin. Pourraient les rumeurs sur les Français de ne pas déclencher l'arrêt de la place? Il y a d' autres qui brode sur elle, "sera né Pinarello."

NYT : Rise of Saudi Prince Shatters Decades of Royal Tradition

He has slashed the state budget, frozen government contracts and reduced the pay of civil employees, all part of drastic austerity measures as the Kingdom of Saudi Arabia is buffeted by low oil prices.

But last year, Mohammed bin Salman, Saudi Arabia’s deputy crown prince, saw a yacht he couldn’t resist.

While vacationing in the south of France, Prince bin Salman spotted a 440-foot yacht floating off the coast. He dispatched an aide to buy the ship, the Serene, which was owned by Yuri Shefler, a Russian vodka tycoon. The deal was done within hours, at a price of approximately 500 million euros (roughly $550 million today), according to an associate of Mr. Shefler and a Saudi close to the royal family. The Russian moved off the yacht the same day.

It is the paradox of the brash, 31-year-old Prince bin Salman: a man who is trying to overturn tradition, reinvent the economy and consolidate power — while holding tight to his royal privilege. In less than two years, he has emerged as the most dynamic royal in the Arab world’s wealthiest nation, setting up a potential rivalry for the throne.

He has a hand in nearly all elements of Saudi policy — from a war in Yemen that has cost the kingdom billions of dollars and led to international criticism over civilian deaths, to a push domestically to restrain Saudi Arabia’s free-spending habits and to break its “addiction” to oil. He has begun to loosen social restrictions that grate on young people.

The rise of Prince bin Salman has shattered decades of tradition in the royal family, where respect for seniority and power-sharing among branches are time-honored traditions. Never before in Saudi history has so much power been wielded by the deputy crown prince, who is second in line to the throne. That centralization of authority has angered many of his relatives.

His seemingly boundless ambitions have led many Saudis and foreign officials to suspect that his ultimate goal is not just to transform the kingdom, but also to shove aside the current crown prince, his 57-year-old cousin, Mohammed bin Nayef, to become the next king. Such a move could further upset his relatives and — if successful — give the country what it has never seen: a young king who could rule the kingdom for many decades.

Crown Prince bin Nayef, the interior minister and longtime counterterrorism czar, has deep ties to Washington and the support of many of the older royals. Deciphering the dynamics of the family can be like trying to navigate a hall of mirrors, but many Saudi and American officials say Prince bin Salman has made moves aimed at reaching into Prince bin Nayef’s portfolios and weakening him.

This has left officials in Washington hedging their bets by building relationships with both men, unsure who will end up on top. The White House got an early sign of the ascent of the young prince in late 2015, when — breaking protocol — Prince bin Salman delivered a soliloquy about the failures of American foreign policy during a meeting between his father, King Salman, and President Obama.

Many young Saudis admire him as an energetic representative of their generation who has addressed some of the country’s problems with uncommon bluntness. The kingdom’s news media have built his image as a hardworking, businesslike leader less concerned than his predecessors with the trappings of royalty.

Others see him as a power-hungry upstart who is risking instability by changing too much, too fast.

Months of interviews with Saudi and American officials, members of the royal family and their associates, and diplomats focused on Saudi affairs reveal a portrait of a prince in a hurry to prove that he can transform Saudi Arabia. Prince bin Salman declined multiple interview requests for this article.

But the question many raise — and cannot yet answer — is whether the energetic leader will succeed in charting a new path for the kingdom, or whether his impulsiveness and inexperience will destabilize the Arab world’s largest economy at a time of turbulence in the Middle East.

Tension at the Top

Early this year, Crown Prince bin Nayef left the kingdom for his family’s villa in Algeria, a sprawling compound an hour’s drive north of Algiers. Although he has long taken annual hunting vacations there, many who know him said that this year was different. He stayed away for weeks, largely incommunicado and often refusing to respond to messages from Saudi officials and close associates in Washington. Even John O. Brennan, the C.I.A. director, whom he has known for decades, had difficulty reaching him.

The crown prince has diabetes, and suffers from the lingering effects of an assassination attempt in 2009 by a jihadist who detonated a bomb he had hidden in his rectum.

But his lengthy absence at a time of low oil prices, turmoil in the Middle East and a foundering Saudi-led war in Yemen led several American officials to conclude that the crown prince was fleeing frictions with his younger cousin and that the prince was worried his chance to ascend the throne was in jeopardy.

Since King Salman ascended to the throne in January 2015, new powers had been flowing to his son, some of them undermining the authority of the crown prince. King Salman collapsed the crown prince’s court into his own, giving Prince bin Salman control over access to the king. Prince bin Salman also hastily announced the formation of a military alliance of Islamic countries to fight terrorism. Counterterrorism had long been the domain of Prince bin Nayef, but the new plan gave no role to him or his powerful Interior Ministry.

The exact personal relationship between the two men is unclear, fueling discussion in Saudi Arabia and in foreign capitals about who is ascendant. Obscuring the picture are the stark differences in the men’s public profiles. Prince bin Nayef has largely stayed in the shadows, although he did visit New York last month to address the United Nations General Assembly before heading to Turkey for a state visit.

His younger cousin, meanwhile, has worked to remain in the spotlight, touring world capitals, speaking with foreign journalists, being photographed with the Facebook chairman Mark Zuckerberg and presenting himself as a face of a new Saudi Arabia.

“There is no topic that is more important than succession matters, especially now,” said Joseph A. Kechichian, a senior fellow at the King Faisal Center for Research and Islamic Studies in Riyadh, who has extensive contacts in the Saudi royal family. “This matters for monarchy, for the regional allies and for the kingdom’s international partners.”

Among the most concrete initiatives so far of Prince bin Salman, who serves as minister of defense, is the Saudi-led war in Yemen, which since it was begun last year has failed to dislodge the Shiite Houthi rebels and their allies from the Yemeni capital. The war has driven much of Yemen toward famine and killed thousands of civilians while costing the Saudi government tens of billions of dollars.
The prosecution of the war by a prince with no military experience has exacerbated tensions between him and his older cousins, according to American officials and members of the royal family. Three of Saudi Arabia’s main security services are run by princes. Although all agreed that the kingdom had to respond when the Houthis seized the Yemeni capital and forced the government into exile, Prince bin Salman took the lead, launching the war in March 2015 without full coordination across the security services.

The head of the National Guard, Prince Mutaib bin Abdullah, had not been informed and was out of the country when the first strikes were carried out, according to a senior National Guard officer.

The National Guard is now holding much of the Yemeni border.

American officials, too, were put off when, just as the Yemen campaign was escalating, Prince bin Salman took a vacation in the Maldives, the island archipelago off the coast of India. Several American officials said Defense Secretary Ashton B. Carter had trouble reaching him for days during one part of the trip.

The prolonged war has also heightened tensions between Prince bin Salman and Prince bin Nayef, who won the respect of Saudis and American officials for dismantling Al Qaeda in the kingdom nearly a decade ago and now sees it taking advantage of chaos in Yemen, according to several American officials and analysts.

“If Mohammed bin Nayef wanted to be seen as a big supporter of this war, he’s had a year and a half to do it,” said Bruce Riedel, a former Middle East analyst at the C.I.A. and a fellow at the Brookings Institution.

Near the start of the war, Prince bin Salman was a forceful public advocate for the campaign and was often photographed visiting troops and meeting with military leaders. But as the campaign has stalemated, such appearances have grown rare.

The war underlines the plans of Prince bin Salman for a brawny foreign policy for the kingdom, one less reliant on Western powers like the United States for its security. He has criticized the thawing of America’s relations with Iran and comments by Mr. Obama during an interview this year that Saudi Arabia must “share the neighborhood” with Iran.

This is part of what analysts say is Prince bin Salman’s attempt to foster a sense of Saudi national identity that has not existed since the kingdom’s founding in 1932.

“There has been a surge of Saudi nationalism since the campaign in Yemen began, with the sense that Saudi Arabia is taking independent collective action,” said Andrew Bowen, a Saudi expert at the Wilson Center in Washington.

Still, Mr. Bowen said support among younger Saudis could diminish the longer the conflict dragged on. Diplomats say the death toll for Saudi troops is higher than the government has publicly acknowledged, and a recent deadly airstrike on a funeral in the Yemeni capital has renewed calls by human rights groups and some American lawmakers to block or delay weapons sales to the kingdom.

People who have met Prince bin Salman said he insisted that Saudi Arabia must be more assertive in shaping events in the Middle East and confronting Iran’s influence in the region — whether in Yemen, Syria, Iraq or Lebanon.

Brian Katulis, a Middle East expert at the Center for American Progress in Washington, who met the prince this year in Riyadh, said his agenda was clear.

“His main message is that Saudi Arabia is a force to be reckoned with,” Mr. Katulis said.

A Swift Ascent

Saudi Arabia is one of the world’s few remaining absolute monarchies, which means that Prince bin Salman was given all of his powers by a vote of one: his own father.

The prince’s rise began in early 2015, after King Abdullah died of lung cancer and King Salman ascended to the throne. In a series of royal decrees, the new king restructured the government and shook up the order of succession in the royal family in ways that invested tremendous power in his son.

He was named defense minister and head of a powerful new council to oversee the Saudi economy as well as put in charge of the governing body of Saudi Aramco, the state oil company and the primary engine of the Saudi economy.

More important, the king decreed a new order of succession, overturning the wishes of King Abdullah and replacing his designated crown prince, Muqrin bin Abdulaziz, with Prince bin Nayef.

While all previous Saudi kings and crown princes had been sons of the kingdom’s founder, Prince bin Nayef was the first of the founder’s grandsons to be put in line. Many hailed the move because of the prince’s success at fighting Al Qaeda and because he has only daughters, leading many to hope he would choose a successor based on merit rather than paternity.

The bigger surprise was that the king named Prince bin Salman deputy crown prince. He was 29 years old at the time and virtually unknown to the kingdom’s closest allies.

This effectively scrapped the political aspirations of his older relatives, many of whom had decades of experience in public life and in key sectors like defense and oil policy. Some are still angry — although only in private, out of deference to the 80-year-old king.

Since then, Prince bin Salman has moved quickly to build his public profile and market himself to other nations as the point man for the kingdom.

Domestically, his focus has been on an ambitious plan for the future of the kingdom, called Vision 2030. The plan, released in April, seeks to transform Saudi life by diversifying its economy away from oil, increasing Saudi employment and improving education, health and other government services. A National Transformation Plan, laying out targets for improving government ministries, came shortly after.
Read in one way, the documents are an ambitious blueprint to change the Saudi way of life. Read in another, they are a scathing indictment of how poorly the kingdom has been run by Prince bin Salman’s elders.

Official government development plans going back decades have called for reducing the dependence on oil and increasing Saudi employment — to little effect. And in calling for transparency and accountability, the plan acknowledges that both have been in short supply. Diplomats and economists say much about the Saudi economy remains opaque, including the cost of generous perks and stipends for members of the royal family.

The need for change is greater now, with global oil prices less than half of what they were in 2014 and hundreds of thousands of young Saudis entering the job market yearly. Prince bin Salman has called for a new era of fiscal responsibility, and over the last year, fuel, water and electricity prices have gone up while the take-home pay of some public sector employees has been cut — squeezing the budgets of average Saudis. He has also said the government will sell shares of Saudi Aramco, believed to be the world’s most valuable company.

Many Saudis say his age and ambition are benefits at a time when old ways of thinking must be changed.

“He is speaking in the language of the youth,” said Hoda al-Helaissi, a member of the kingdom’s advisory Shura Council, which is appointed by the king. “The country for too long has been looking through the lenses of the older generation, and we need to look at who is going to carry the torch to the next generation.”

Some of his initiatives have appeared ham-handed. In December, he held his first news conference to announce the formation of a military alliance of Islamic countries to fight terrorism. But a number of countries that he said were involved soon responded that they knew nothing about it or were still waiting for information before deciding whether to join.

Others have been popular. After Prince bin Salman called for more entertainment options for families and young people, who often flee the country on their vacations, the cabinet passed regulations restricting the powers of the religious police. An Entertainment Authority he established has planned its first activities, which include comedy shows, pro wrestling events and monster truck rallies.

The prince has kept his distance from the Council of Senior Scholars, the mostly elderly clerics who set official religious policy and often release religious opinions that young Saudis mock as being out of touch with modern life.
Instead, he has sought the favor of younger clerics who boast millions of followers on social media. After the release of Vision 2030, Prince bin Salman held a reception for Saudi journalists and academics that included a number of younger, tech-savvy clerics who have gone forth to praise the plan.
Prince bin Salman’s prominence today was difficult to predict during his early years, spent largely below the radar of Western officials who keep track of young Saudi royals who might one day rule the kingdom.
Several of King Salman’s other sons, who studied overseas to perfect foreign languages and earn advanced degrees, built impressive résumés. One became the first Arab astronaut, another a deputy oil minister, yet another the governor of Medina Province.
Prince bin Salman stayed in Saudi Arabia and does not speak fluent English, although he appears to understand it. After a private school education, he studied law at King Saud University in Riyadh, reportedly graduating fourth in his class. Another prince of the same generation said he had gotten to know him during high school, when one of their uncles hosted regular dinners for the younger princes at his palace. He recalled Prince bin Salman being one of the crowd, saying he liked to play bridge and admired Margaret Thatcher.
King Salman is said to see himself in his favorite son, the latest in the lineage of a family that has ruled most of the Arabian Peninsula for eight decades.
In 2007, when the United States ambassador dropped in on King Salman, then a prince and the governor of Riyadh Province, to say farewell at the end of his posting, the governor asked for help circumventing America’s stringent visa procedures. His wife could not get a visa to see her doctor, and although his other children were willing to submit to the visa hurdles, “his son, Prince Mohammed, refused to go to the U.S. Embassy to be fingerprinted ‘like some criminal,’” according to a State Department cable at the time.
Prince bin Salman graduated from the university that year and continued to work for his father, who was named defense minister in 2011, while dabbling in real estate and business.
Many members of the royal family remain wary of the young prince’s projects and ultimate ambitions. Some mock him as the “Prince of the Vision” and complain about his army of well-paid foreign consultants and image-makers.
Other are annoyed by the media cell he created inside the royal court to promote his initiatives, both foreign and domestic. Called the Center for Studies and Media Affairs, the group has focused on promoting a positive story about the Yemen war in Washington and has hired numerous Washington lobbying and public affairs firms to assist in the effort.
Inside the kingdom, the government has largely succeeded in keeping criticism — and even open discussion — of the prince and his projects out of the public sphere. His family holds sway over the parent company of many Saudi newspapers, which have breathlessly covered his initiatives, and prominent Saudi editors and journalists who have accompanied him on foreign trips have been given up to $100,000 in cash, according to two people who have traveled with the prince’s delegation.
Meanwhile, Saudi journalists deemed too critical have been quietly silenced through phone calls informing them that they are barred from publishing, and sometimes from traveling abroad.
In June, a Saudi journalist, Sultan al-Saad al-Qahtani, published an articlein Arabic on his website, The Riyadh Post, in which he addressed the lack of discussion about Prince bin Salman’s rise.
“You can buy tens of newspapers and hundreds of journalists, but you can’t buy the history that will be written about you,” he wrote.
He said that the prince’s popularity among Saudis was based on a “sweeping desire for great change” and that they loved him based on the hope that he would “turn their dreams into reality.”
In that lay the risk, Mr. Qahtani wrote: “If you fail, this love withers quickly, as if it never existed, and is replaced by a deep feeling of frustration and hatred.”
The site was blocked the next day, Mr. Qahtani said, for the third time in 13 months. (It is now back up, at a new address.)
The Future
As sweeping and long-term as Prince bin Salman’s initiatives are, they may hang by the tenuous thread of his link to his father, who has memory lapses, according to foreign officials who have met with him. Even the prince’s supporters acknowledge that they are not sure he will retain his current roles after his father dies.
In the meantime, he is racing against time to establish his reputation and cement his place in the kingdom’s power structure.
His fast ascent, and his well-publicized foreign trips to Washington, Europe, the Middle East and elsewhere in Asia, have led senior Obama administration officials to consider the prospect that he could step over Prince bin Nayef and become Saudi Arabia’s next king.
This has led to a balancing act for American officials who want to build a relationship with him while not being used as leverage in any rivalry with Prince bin Nayef. Obama administration officials say relations with Prince bin Salman have generally improved, but only after a rocky start when he would routinely lecture senior Americans — even the president.
In November, during a Group of 20 summit meeting at a luxury resort on the Turkish coast, Prince bin Salman gave what American officials described as a lengthy speech about what he saw as the failure of American foreign policy in the Middle East — from the Obama administration’s restraint in Syria to its efforts to improve relations with Iran, Saudi Arabia’s bitter enemy.
Personal relationships have long been the bedrock of American-Saudi relations, yet the Obama administration has struggled to find someone to develop a rapport with the prince. The job has largely fallen to Secretary of State John Kerry, who has hosted the prince several times at his home in Georgetown. In June, the two men shared an iftar dinner, breaking the Ramadan fast. In September 2015, dinner at Mr. Kerry’s house ended with Prince bin Salman playing Beethoven on the piano for the secretary of state and the other guests.
In May, the prince invited Mr. Kerry for a meeting on the Serene, the luxury yacht he bought from the Russian billionaire.
His desire to reimagine the Saudi state is reflected in his admiration — some even call it envy — for the kingdom’s more modern and progressive neighbor in the Persian Gulf, the United Arab Emirates.
He has influential supporters in this effort, particularly the crown prince of Abu Dhabi, Sheikh Mohammed bin Zayed Al Nahyan, who for more than a year has been promoting Prince bin Salman in the Middle East and in Washington.
Crown Prince bin Zayed, the United Arab Emirates’ de facto ruler, is a favorite among Obama administration officials, who view him as a reliable ally and a respected voice in the Sunni world. But he also has a history of personal antipathy toward Prince bin Nayef, adding a particular urgency to his support for the chief rival of the Saudi crown prince.
In April of last year, Mr. Obama’s national security adviser, Susan E. Rice, led a small delegation of top White House officials to visit Prince bin Zayed at his home in McLean, Va. During the meeting, according to several officials who attended, the prince urged the Americans to develop a relationship with Prince bin Salman.
But all questions about Prince bin Salman’s future are likely to depend on how long his father lives, according to diplomats who track Saudi Arabia.
If he died soon, Prince bin Nayef would become king and could dismiss his younger cousin as a gesture to his fellow royals. In fact, it was King Salman who set the precedent for such moves by dismissing the crown prince named by his predecessor.
“If the king’s health starts to deteriorate, Mohammed bin Salman is very likely to try to get Mohammed bin Nayef out of the picture,” said Mr. Riedel, the former C.I.A. analyst.
But the longer King Salman reigns, foreign officials said, the longer the young prince has to consolidate his power — or to convince Prince bin Nayef that he is worth keeping around if Prince bin Nayef becomes king.
Most Saudi watchers do not expect any struggles within the family to spill into the open, as all the royals understand how much they have to lose from such fissures becoming public or destabilizing their grip on the kingdom.
“I am persuaded as someone who focuses on this topic that the ruling family of Saudi Arabia above all else puts the interest of the family first and foremost,” said Mr. Kechichian, the analyst who knows many royals.
“Not a single member of the family will do anything to hurt the family.”

(Kepler-Cheuvreux) Altice Raises stake in SFR - both notes attached

Altice – Growth priced in

We cannot rule out a new offer for SFR, but the timing is uncertain. Altice is improving across the board and may deliver above-sector growth rates on the back of the US, but this is well reflected in the current premium and an above-average leverage requires some extra compensation.

 

Altice shows willingness to raise stake in SFR

The acquisition of a 5.2% stake in SFR in an off-market transaction and the decision to appeal AMF’s decision indicates that Altice still has some willingness to increase its exposure to SFR and pay at least the same price (1.6x ratio, implied EUR25.5 per SFR share). However, the exchange offer has been terminated and we do not expect an imminent offer. But Altice may resume its offer, particularly in a scenario of French mobile consolidation although this time we think the deal would be structured in a different way, with Bouygues and Altice most likely teaming up. The economic benefits of such an integration are hard to ignore (NPV of c. EUR7bn) and although not in our estimates, such a scenario would provide some upside to Altice.

 

We still prefer SFR to Altice

We think Altice can deliver higher growth than European peers and SFR over the coming years (a 6.8% EBITDA CAGR over 2015-18E, driven by the US at 9.8%, with SFR at 4.4% and sector at 2%), but this is well reflected in the trading premium (Altice 7.6x EV/EBITDA 2017E, sector 6.7x, SFR 6.1x). Altice’s 2018 EquityFCF yield of 9.4% (SFR 7.3%, sector 6.8%) is compensation for higher debt (net debt/EBITDA 2017 5.0x, SFR 3.5x, sector 2.2x). We still see more upside at SFR (18% vs. 2.5%).




 

Altice raises stake in SFR

 

An offer is uncertain but Altice is probably still interested in raising its stake in SFR ahead of a potential consolidation deal in France. We adjust our TP and estimates on the back of the likely new management fee but still see some decent upside based on above sector EBITDA growth estimates

 

French consolidation cannot be ruled out

However, the exchange offer has been terminated and we do not expect an imminent offer. But Altice may resume its offer, particularly in a scenario of French mobile consolidation that in our view is still possible (more likely after French presidential elections in spring 2017). This time, we think the deal would be structured in a different way, with Bouygues and Altice most likely teaming up their respective telecom units. The economic benefits of such an integration are hard to ignore (NPV of c. EUR7bn) and although not in our estimates, such a scenario would also provide solid support to SFR.