>>> Street pré market indications



BofA-ML
DELTA LLOYD - NN plan to make an all cash offer at e5.30 (29% premium)(5.15)+25%
TESCO - H1 sales +3.3% YoY is a beat. FY guidance implies cautious H2 (194)..+3%
CENTAMIN - Small beat. 149koz +41% YoY but +6% QoQ, impressive strong Q2(145)u/c
AHOLD DELHAIZE - James McCann (US CEO, ex Ahold) resigns, Holt appointed (21)u/c
MINERS - Copper unch, Gold -0.6% with BHP OZ -0.2%, RIO OZ -1.1%, NCM -5%....-1%
CAPGEMINI - Redeeming its €400m convertible bond by mid-Nov (21st) (87.8)....-1%
ALTICE - Deal with SFR terminated post AMF blocking the offer (EUR15.99)...-1-2%
HASTINGS - Placing overnight of 46m shrs at 216, equal to a 6% discount (220)-4%
NN - Plans to make an all cash offer (29% premium) @ e5.30 for DL NA (25.7)..-5%
SFR - Altice deal terminated. We expect c4/5% move wider in the spread (25)-5-7%
CS
Aegon +2-3% Positive read from NN bid for Delta Lloyd
Altice -3-5% Altice NV terminated an offer to buy the rest of its SFR
Centamin +2-3% Sees FY production guidance at top end of range
Daimler -1% Sept prelim class 8 truck orders came in below consensus
Delta Lloyd +20-25% NN intends to make all-cash offer for Delta Lloyd of Eu5.30
Deut Bank +1% Platow Brief report - weighing a capital increase
Infineon -1% Micron down -4% after hours, gross margin miss
Miners -1% Copper UNCH, Brent +0.25%, Iron Ore closed, China closed
NN Group +3-4% NN intends to make all-cash offer for Delta Lloyd of Eu5.30
Oils -0.5% API draw of 7.6m barrels, sectors had a good run
Orange Belg -1-2% CS DOWNGRADE to UNDERPERFORM (deteriorating growth)
Proximus -1-2% CS DOWNGRADE to UNDERPERFORM (deteriorating growth)
SFR -5-7% Altice NV terminated an offer to buy the rest of its SFR
STM -1% Micron down -4% after hours, gross margin miss
Tesco +1% H1 Operating profit GBP 389m est 303m, meeting at 8.30
Topps Tiles -1% Revs slightly light, PTP inline
Volkswagen -1% Sept prelim class 8 truck orders came in below consensus
Volvo -1-2% Sept prelim class 8 truck orders came in below consensus
Shore
TESCO - sales+3.3%,oper.pft b4 excep.£596m,UK LfL+0.6%,a touch ahead of cons.+1%
HASTINGS - directors selling stock,46m shares placed via bb at 216p..........MKT
CAPE - Extends and expands its Perenco UK contract..........................UNCH
TOPPS TILES - LfL revs +1.4%.Yr ptp expected to be within market range.......+1%
CENTAMIN - Q3 gold production +41% vs 2015,sees FY production at upper end...+1%
CENTRAL ASIA METALS - record quarterly production,on track to hit upper end..+1%
GOOCH & HOUSEGO - FY performance to be inline,demand strengthened in H2.....UNCH
SAFECHARGE - Italian gaming group Sisal selects SCH payments platform.......UNCH

Reuters - ECB has not discussed reducing bond purchases: spokesman

ECB has not discussed reducing bond purchases: spokesman

The European Central Bank's decision-making body has not discussed reducing the pace of its monthly bond buying, ECB media officer Michael Steen tweeted on Tuesday, responding to a Bloomberg article.
Bloomberg had reported the ECB would probably wind down its 80-billion-euro ($90-billion) monthly bond purchases gradually before ending its quantitative easing program, citing unnamed officials at euro zone countries' central banks.
"(The ECB's) Governing Council has not discussed these topics, as (President Mario) Draghi said at last press conference and during testimony at the European Parliament," Steen said in the tweet.
Reuters reported late last month the ECB would not abruptly stop buying bonds in March, indicated as the earliest possible end to the scheme, and some sort of extension, even at a lower pace of monthly purchases, was necessary.
Draghi said last month the ECB would look at ways to ensure the bond-buying program carries on smoothly, amid market fears of a scarcity of assets to buy in countries such as Germany.
An announcement on that is expected in December, when the ECB publishes its new staff forecasts.

>>> What to look at today - 5th of October 2016

Dow-0.47% S&P-0.50% Nasdaq-0.21% Russell-0.48% VIX 13.63 +0.44% VXX 33.77 -0.35%
US MArket closed lower on Stronger Dollar and higher interest rates. news of potential tapering on the horizon led to a downturn in sovereign bonds, which boosted rates globally. Defensively-oriented sectors extended early losses as participants unwound some crowded trades in real estate (-1.6%), telecom services (-1.7%), and utilities (-2.2%). The benchmark index rallied in the final hour of trade, narrowing its loss to 0.5%. Heavily-weighted financials (+0.3%) finished with the only gain. The financial sector (+0.3%) led the advance as steepening in the yield curve boosted earnings prospects for the group. Volume were in line with average at 876mil shares. US After Hours ACIA +7% following guidance, SALT +6.5% after confirming President insider purchase... MU -4.8% following earnings/guidance. In Asia, World Bank East Asia report sees China growth slowing gradually to 6.3% in 2018; Regional growth target for 2016 raised to 6.4% from 6.3% prior forecast before slowing to 6.0% in 2018. Hong Kong composite PMI at 18-month high, Singapore PMI at 19-month high; Micron beats on earnings but shares fall over 5% afterhours on soft margins and an 8% y/y cut to CAPEX in FY17. Oil rallies 1% in electronic trade after API inventories showed the largest draw since Sept 7th.

Nikkei +0.51% Hang Seng +0.38% CSI Closed Shanghai Closed

Eur$ 1.1215 CNH 6.6903 CNY 6.6718 JPY 102.97 GBP 1.2737 CHF 0.9783 RUB 62.5535

S&P -0.03% EuroStoxx -0.60% FTSE -0.82 Dax -0.45% SMI -0.10%

Macro :
- Gross Says Went Short Duration on EU Debt After Earlier Report

Keep an eye on :
- ABBN VX : Cevian Wants ABB Shares to Rise to CHF35 Within 18 Months: SVD
- AIR FP : Boeing Talks With Iran on Jet Sales Are Progressing, CEO Says
- AIR FP : Boeing Sees Supersonic, Hypersonic Travel as Big Opportunity
- AI FP : Air Liquide in Talks to Sell Aqua Lung to Montagu Private Equity
- AIXA GY : Aixtron Bid Not Influenced by Chinese Govt: Spiegel
- ATC NA : Altice Says Offer for SFR Terminated As Regulator Blocks Bid
- AZN LN : Sanofi, AstraZeneca Settle Patent Fight Over Diabetes Drugs
- BN FP : WhiteWave Stockholders Approve Merger with Danone, WhiteWave Confirms DOJ Made Second Request to Danone on Oct. 3
- DL NA : NN Aims to Make All-Cash Offer for Delta Lloyd
- DBK GY : Deutsche Bank Mulls Capital Increase, Bonus-Freeze: Platow Brief
- DTE GY : Deutsche Telekom to Sell Google’s Pixel Smartphone in Germany
- DGE LN : Diageo Will Not Increase Stake in Guinness Nigeria: Statement
- GLD US : Hepatitis C Drugs Could Reactivate Hepatitis B Virus, FDA Warns
- NN NA : NN Aims to Make All-Cash Offer for Delta Lloyd
- CFR US : Salesforce to Reach $10b Revenue Target Next Year, CFO Says
- SAB LN : Asahi to Bid on SABMiller’s Eastern Europe Business: Nikkei
- SAB LN : Asahi Group: No Plan to Bid for SABMiller’s E. Europe Beer Ops
- SAN FP : Sanofi, AstraZeneca Settle Patent Fight Over Diabetes Drugs
- SDRL NO : Seadrill Reiterated Sell at Goldman, Likely Requires Refinancing
- SFR FP : Altice Says Offer for SFR Terminated As Regulator Blocks Bid
- SIE GY : Siemens Gets FDA Clearance of Xprecia Stride Coagulation
- GLE FP : SocGen, Unilever Among Additions to Barclays European Top Picks
- RUKN VX : Reinsurers Jump on Report of Endurance Specialty Takeout
- TWTR US : Twitter Set to Field Offers This Wk; Salesforce Among Bids: WSJ
- UL FP : Unibail-Rodamco: Jose Luis Duran Resigns From Supervisory Board
- UNA NA : SocGen, Unilever Among Additions to Barclays European Top Picks

>>> Europe : Brokers Upgrades & Downgrades - 5th of October 2016

>>> Up
*CASINO RAISED TO BUY AT HSBC
*COSTAMARE RAISED TO OVERWEIGHT AT JPMORGAN
*INTERTEK RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*UBS RAISED TO SECTOR PERFORM AT RBC

>>> Down
*APPLUS CUT TO NEUTRAL VS OUTPERFORM AT EXANE
*ASSA ABLOY CUT TO HOLD AT HSBC
*COMMERZBANK CUT TO HOLD VS BUY AT DEUTSCHE BANK
*COMMERZBANK CUT TO ADD VS BUY AT ALPHAVALUE
*COMMERZBANK CUT TO NEUTRAL VS OUTPERFORM AT EXANE
*FERREXPO CUT TO HOLD VS BUY AT EXOTIX PARTNERS
*ORANGE BELGIUM CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*PROXIMUS CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*RBS CUT TO REDUCE AT HSBC
*TRELLEBORG CUT TO NEUTRAL VS BUY AT UBS
*TRYG CUT TO NEUTRAL VS BUY AT CITI
*UNITED UTILITIES CUT TO UNDERPERFORM AT RBC
*SEVERN TRENT CUT TO UNDERPERFORM AT RBC

>>> PT Change


>>> Initiation
*AB INBEV RESUMED AT OVERWEIGHT AT MORGAN STANLEY; PT EU135
*ACERINOX RATED NEW UNDERWEIGHT AT JPMORGAN, PT EU11
*APERAM RATED NEW OVERWEIGHT AT JPMORGAN, PT EU47.50
*JULIUS BAER RATED NEW OUTPERFORM AT RBC
*OUTOKUMPU RATED NEW NEUTRAL AT JPMORGAN, PT EU6.40

>>> Call
>> Stock
*ING REMOVED FROM EUROPEAN TOP PICKS AT BARCLAYS
*UNILEVER ADDED TO EUROPEAN TOP PICKS AT BARCLAYS
*SHW ADDED TO ALPHA LIST AT BANKHAUS LAMPE
*SOCGEN ADDED TO EUROPEAN RECOMMENDED PORTFOLIO AT BARCLAYS

>>> Asian Update

Asia Mid-Session Market Update: World Bank raises East Asia GDP forecast as composite PMIs from Singapore and Hong Kong show improvement; Twitter bids expected this week


***Asia Notes/Observations***
- World Bank East Asia report sees China growth slowing gradually to 6.3% in 2018; Regional growth target for 2016 raised to 6.4% from 6.3% prior forecast before slowing to 6.0% in 2018.
- Hong Kong composite PMI at 18-month high, Singapore PMI at 19-month high; In Hong Kong, "companies saw only modest falls in key variables such as new work, output and employment. September meanwhile saw an encouraging upturn in purchasing activity and a further rise in inventories"; Singapore "output and new orders components expanded at sharper rates, while new work from abroad rose for the first time since February, but companies were cautious with regard to employment and inventories, with staff numbers rising only slightly."
- Micron beats on earnings but shares fall over 5% afterhours on soft margins and an 8% y/y cut to CAPEX in FY17
- Oil rallies 1% in electronic trade after API inventories showed the largest draw since Sept 7th.
- Twitter up 4% in extended session on press reports it is prepared to take bids this week; Salesforce reportedly joining the other candidates (GOOG, MSFT, DIS)
- Latest NHC update has hurricane Matthew bending into Florida coast Thursday night and then veering off to the Atlantic on Sunday.
- US Vice Presidential debate more contentious than anticipated; USD/MXN less volatile than in presidential debate, trading in 19.27-30 range.
- Precious metals bounce off the lows after plunging in US session.

***Top US session headlines***
- IMF UPDATES WORLD ECONOMIC OUTLOOK (WEO): Maintains 2016 global growth forecast at 3.1%; Maintains 2017 global growth forecast at 3.4%
- Brexit concerns weigh on Pound (31-year low) but FTSE rises to 17-month highs; Prime Min May: regarding fall in sterling, UK economic fundamentals are strong; currencies go up and down
- (US) National Hurricane Center (NHC): Category 4 Hurricane Matthew moving toward Atlantic Coast
- (US) Sept ISM New York: 49.6 v 47.5 prior
- (US) Oct IBD/TIPP Economic Optimism: 49.6 v 47.2e
- (US) National Retail Federation forecasts US holiday sales +3.6% y/y v +3% in 2015 (10-year avg is +2.5%)
- (US) Fed's Lacker (hawk, non-voter): Fed policy should be at least 1.5% by now - comments from West Virginia
- The US curve steepened while the spread to the German Bund yield widened to the largest level since Nov 2015.

***US markets on close: Dow -0.5%, S&P500 -0.5%, Nasdaq -0.2%***
- Best Sector in S&P500: Financials
- Worst Sector in S&P500: Utilities
- Biggest gainers: HIG +3.0%, CRM +3.0%, SIG +2.8%, NTRS +2.5%, ALK +2.4%
- Biggest losers: NEM -10.1%, DO -4.6%, DPS -4.3%, AEAS -4.2%, DLTR -3.9%

***VIX 13.63 (+0.1pts); Treasuries: 2-yr 0.83% (+3bp), 10-yr 1.68% (+6bp), 30-yr 2.41% (+7bp)***

***US movers afterhours***
- ACIA +7.8%: Raises Q3 $0.83-0.90 v $0.74e; Rev $130-133M v $129Me (prior $0.72-0.81; Rev $127-131M); Offering 4.5M (3.3M for shareholders)
- TWTR +3.9%: First bids expected to come in this week for the company; Salesforce among potential bidders - financial press
- MU -5.3%: Reports Q4 -$0.05 v -$0.12e, R$3.22B v $3.11Be; Gross margin (gaap) 18% v 27% y/y; Guides Q1 $0.13-0.21 v $0.07e, R$3.55-3.85B v $3.32Be

***Equity Futures (00:00ET): S&P e-mini flat, Dax +0.1%, FTSE100 +0.2%***

***FX / Commodities ranges (00:00ET):***
- EUR 1.12-1.1230; JPY 102.65-102.95; AUD 0.7605-0.7645, NZD 0.7175-0.7200
- Gold +0.5% at 1,277/oz; Oil +0.9% at $49.14/brl; Copper +0.3% at $2.17/lb
- Weekly API Oil Inventories: Crude: -7.6M v -0.8M prior; 3rd straight draw; largest draw since Sept 7th

***Asian Equity Markets (00:00ET)***
- Nikkei +0.6%, Hang Seng +0.4%, ASX -0.6%, Shanghai closed, Kospi flat

***Key economic data:***
- (AU) AUSTRALIA AUG RETAIL SALES M/M: 0.4% V 0.2%E; 5-month high
- (AU) AUSTRALIA SEPT AIG PERF OF SERVICES INDEX: 48.9 V 45.0 PRIOR; 2nd straight month of contraction
- (JP) JAPAN SEPT SERVICES PMI: 48.2 V 49.6 PRIOR; COMPOSITE PMI: 48.9 V 49.8 PRIOR
- (HK) HONG KONG SEPT COMPOSITE PMI: 49.3 V 49.0 PRIOR; highest since Mar 2015; 19th consecutive month of contraction
- (SG) SINGAPORE SEPT PMI COMPOSITE: 52.9 V 52.3 PRIOR; highest since Feb 2015
- (KR) SOUTH KOREA SEPT CPI M/M: 0.6% V 0.2%E; Y/Y: 1.2% V 0.7%E; CPI CORE Y/Y: 1.3% V 1.1%E
- (PH) PHILIPPINES SEPT CPI M/M: 0.2% V 0.0%E; Y/Y: 2.3% V 2.1%E; CPI CORE Y/Y: 2.3% V 2.1%E
- (TW) TAIWAN SEPT CPI Y/Y: 0.3% V 0.4%E; WPI Y/Y: -4.0% V -3.9%E
- (UK) SEPT AUG BRC SHOP PRICE INDEX Y/Y: -1.8% V -2.0% PRIOR (41st month of decline)

***Speakers / Press / Fixed Income***
China:
(CN) Additional major cities in China (Guangzhou, Shenzhen City, Zhenzhou City, Suzhou City) to tighten home purchase rules to cool down market - Chinese press
- World Bank East Asia Pacific Economic Update: Cuts China 2018 GDP forecast to 6.3% from 6.5%

Japan:
- (JP) BOJ Gov Kuroda: Interest rates to rise if price target is met; reiterates will lower rates if needed - speaking in Diet
- (JP) Japan PM Abe: Reiterates not talking of calling an election now (speculated may call snap election early next year in Chinese press)

Australia:
- (AU) Australia sells A$1.0B in 2027 bonds; avg yield 2.183%; bid-to-cover 2.06x

***Asia movers***
Notable movers by sector:
- Consumer discretionary: Fast Retailing Co 9983.JP +1.8% (JPMorgan raised to Overweight); Toray Industries 3402.JP -3.8% (H1 result speculation)
- Financials: Sompo Japan Insurance 8630.JP +2.1% (acquisition speculation); Marui Group Co.8252.JP +4.5% (Mitsubishi raised to Neutral)
- Industrials: Hitachi Ltd 6501.JP +5.1% (plans to sell stakes in Hitachi Kokusai)
- Technology: Nintendo Co.7974.JP +1.3% (Pokemon Go available in more countries)
- Materials: Anhui Conch Cement 914.HK +2.0% (Jefferies raised to Buy); Whitehaven Coal WHC.AU +5.1% (European 2017 coal price rises); Syrah Resources SYR.AU -16.1% (Managing Director resigns); Zijin Mining 2899.HK -2.4%
- Energy: China Oilfield Services 2883.HK +7.1% (Nomura raised to Buy); Beach Energy BPT.AU -2.1% (Goldman cuts to Sell)
- Healthcare: Avita Medical AVH.AU +7.1% (FDA's approval)

>>> US After Hours

After Hours Summary: ACIA +7% following guidance, SALT +6.5% after confirming President insider purchase... MU -4.8% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to guidance: ACIA +7.4% (files amended S-1 for offering of 4.5 mln shares, again raises Q3 guidance)

Companies trading higher in after hours in reaction to news: SALT +6.5% (light volume - President Robert Bugbee has purchased 60K common shares at average price of $3.60/share in the open market), NTIP +2.5% (thinly traded - announces settlement of patent litigation with Polycom), TMH +1.7% (after late spike on potential sale exploration), TWLO +1.7% (Chief Operating Officer Roy Ng transitions to Senior Vice President of Commercial Operations, effective immediately), ARIA +1% (initiated with a Buy at SunTrust, $22 tgt), ENH +0.9% (continued strength after confirming Sompo Holdings potential strategic transaction), KIN +0% (receives a technical section complete letter for effectiveness from the FDA's Center for Veterinary Medicine for Zimeta (dipyrone injection) approving the technical section)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: ULH -11% (ticking lower), MU -4.8%, CRM -0.2% (modestly lower -- issued guidance from ongoing Dreamforce conference)

Companies trading lower in after hours in reaction to news: CASC -7.1% (approves reverse split), AAAP -0.6% (ticking lower; commenced an underwritten public offering of $125 million of American Depositary Shares)

>>> SFR minorities bidder Altice responds to AMF decision declaring non complian

SFR minorities bidder Altice responds to AMF decision declaring non compliance of offer

Altice NV (Euronext: ATCA, ATCB) has taken note of the decision of the French securities regulator, the Autorité des marchés financiers (AMF), to oppose the public exchange offer for its subsidiary SFR Group announced on 5 September 2016.
The Altice Group regrets this decision, which goes against the interests of both companies, their shareholders and employees.
The Altice group notes that the board of directors of SFR Group unanimously recommended the voluntary offer and that the independent expert concluded that the offer was fair to minority shareholders. As a result of the AMF decision, the offer is terminated, but Altice reserves the right to file an appeal with the Court of Appeal of Paris against the decision of the AMF, which it believes was made in breach of applicable stock market regulations.
Altice, an international group listed on the Amsterdam stock exchange and SFR group's controlling shareholder, confirms that its industrial strategy and its plans for growth in France and abroad remain unchanged.
Market regulator AMF's statement is translated below:
The Autorité des marchés financiers makes known that, in its meeting of 4 October 2016, it declared the simplified public exchange offer for SFR Group shares initiated by the company Altice NV non compliant (cf. D&I 216C1966 on 5 September 2016).
The AMF will publish the motivation behind its decision within a short timeframe.

>>> Asahi Group Holdings planning to propose in excess of JPY 500bn for SABMille

Asahi Group Holdings planning to propose in excess of JPY 500bn for SABMiller's Eastern European beer companies

Asahi Group Holdings [TYO:2502] is planning a proposal exceeding JPY 500bn (USD 4.9bn) for UK-based SABMiller’s Eastern Europe beer operations, the Nihon Keizai Shimbun reported, without citing any source.
The Japanese-language report disclosed that as part of moves aimed at restructuring global operations, prior to the acquisition of SABMiller by Anheuser-Busch InBev on 10 October, the Belgium-based brewer plans to soon open the bidding process for SabMiller’s beer businesses in the Czech Republic, Hungary, Poland, Romania and Slovakia. Other companies considering bids include European funds and Asia-based brewers, the report said.