>>> What to look at today - 28th of September 2016

Dow+0.74% S&P+0.64% Nasdaq+0.92% Russell+0.44%
US MArket closed higher after a slow start. Deutsche Bank & Oil were the 2 main catalysts. The CBOE Volatility Index (VIX 13.11, -1.39, -1.23%) declined more than one point after carving out a session high of 14.63% on Monday. Oil prices remained a weak spot for the second day in a row as the energy component was pressured by developments from Algiers, Algeria. Reports from the International Energy Forum indicated that OPEC and non-OPEC producers were unable to reach a supply control agreement. Furthermore, Saudi Energy Minister Khalid al-Falih stated that he does not expect to reach an agreement during tomorrow's meeting. The energy minister did indicate that the topic could be revived in time for the oil cartel's November 30 meeting. WTI crude finished the day lower by 2.6% ($44.67/bbl). eight sectors finished in the green with consumer discretionary (+1.0%) and technology (+1.2%) leading the pack. Conversely, defensively-oriented utilities (-1.3%) and real estate (-0.8%) trailed energy (-0.5%) on the bottom of the leaderboard. Volume were below average with 827mil shares. US After hours CTAS +5% following earnings/guidance, SEED +37% on business units sale news, COTY +3% on S&P 500 addition news... TPX -24%, SONC -7%, NKE -2% following earnings/guidance, GALT -52% after trial failed to meet endpoints. China Q3 Beige Book: Q3 growth seen exclusively from old engine; Retail, services and transportation sectors all weakened; Corporate finances strained by weaker profits and cash flow.Japan PM Abe: Japan has not escaped from deflation yet; Govt and BOJ to continue to work together to boost growth via all policy measures, JPY strength is damaging confidence in economy and may hurt BOJ.

Nikkei -1.42% Hang Seng -0.60% CSI -0.14% Shanghai -0.21%

Eur$ 1.1212 CNH 6.6830 CNY 6.6703 JPY 100.61 GBP 1.3012 CHF 0.9715 RUB 63.8069 WTI$ 44.79 +0.27%

S&P -0.09% EuroStoxx +0.30% Dax +0.35% FTSE +0.20% SMI +0.36%

Macro :
- Fed’s Fischer Says Wages Beginning to Respond to Labor Market


Keep an eye on :
- ABBN VX : Cevian Has Met Potential Buyers for ABB Power Grids Assets: DI
- ADS GY : Nike Says Margins Hurt by Selling More Discounted Items
- AZI IM : Azimut Holding Board Names Sergio Albarelli CEO
- BCP PL : Banco Comercial Says Fosun Would Be Welcome as an Investor
- CDI FP : Dior show will mark seismic shift for women designers in luxury - FT - http://on.ft.com/2czzJ5K
- DBK GY : Deutsche Bank’s Cryan Rules Out Capital Increase: Bild
- DBK GY : Deutsche Bank Is Still Processing Legacy Problems: Dijsselbloem
- EDF FP : EDF Board Said to Confirm Hinkley Point Plan: Reuters, Confirmed Conditions Set Out Are Met Order for Contract
- GLPG NA : Galapagos Says to Progress Filgotinib to Phase 3 in IBD
- KNEBV FH : Kone Keeps 2016 Targets; Long-Term Drivers in China Still Solid
- LXS GY : Lanxess CEO Sees More Acquisitions After Chemtura Integration
- MAN GY : MAN Gets Major Truck Order From North Africa
- MS IM : Mediaset to Proceed With Lawsuit Against Vivendi: Radiocor
- NEO FP : Neopost 1H Net, Rev. Decline, Medium-Term Targets Unchanged
- ORP FP : Orpea Confirms FY Goals as 1H Net EU75.5m; Eyes New Regions
- PSG SM : Spain’s Prosegur Said to Consider IPO for Cash Management Unit
- SAN SM : Santander Board Proposes Homaira Akbari as Board-Member
- SLT GY : Schaltbau to Sell 2.03% of Issued Share Capital
- SNH GY : Steinhoff to Offer Shares to Raise EU1.89b
- SIE GY : Siemens’ Cromme Says German Infrastructure Needs Investment: HB
- SYNN VX : U.S. farmer lawsuits over Syngenta GMO corn granted class status - Fox News
- UBI FP : Ubisoft Buys Mobile Publisher Ketchapp
- VWS DC : Vestas Would Benefit From Industrial Shareholder, Chairman Says
- VIV FP : Vivendi: Analyzing Options After 2010 Securities Fraud Verdict
- VOLVB SS : Volvo CEO Aims to Be Leading on Profitability, DI Reports
- VOW3 GY : Audi Halts Sale of Q5 SUVs in India After Emission Check: TOI

>>> Europe : Brokers Upgrades & Downgrades - 28th of September 2016

>>> Up
*AMERISUR RESOURCES RAISED TO HOLD VS REDUCE AT PEEL HUNT
*HENKEL RAISED TO NEUTRAL AT JPMORGAN
*K+S RAISED TO EQUAL WEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*LANXESS RAISED TO BUY AT DEUTSCHE BANK
*PETROFAC RAISED TO BUY VS NEUTRAL AT GOLDMAN
*PROSIEBENSAT.1 RAISED TO HOLD VS SELL AT BERENBERG
*TECNICAS REUNIDAS RAISED TO BUY VS NEUTRAL AT GOLDMAN

>>> Down
*ICAP CUT TO NEUTRAL VS BUY AT CITI
*U-BLOX CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE

>>> PT Change


>>> Initiation
*MERLIN PROPERTIES RESUMED AT OVERWEIGHT AT MORGAN STANLEY

>>> Call

>>> Asian Update

Asia Mid-Session Market Update: Focus shifts from US political contest to

***Top US session headlines***
- (IR) Iran Oil Min Zanganeh: We need more time for more consultations; Not willing to freeze output at current level - comments from Algiers
- (SA) Saudi Oil Min Al-Falih: not expecting agreement at Weds talks in Algiers; consensus is possible by Nov - comments in Algiers
- (US) SEPT CONSUMER CONFIDENCE: 104.1 V 99E (highest since Aug 2007)
- (US) Fed Vice Chair Fischer: best thing Fed can do is get unemployment down - Q&A

***US markets on close: Dow +0.6%, S&P500 +0.7%, Nasdaq +0.9%***
- Best Sector in S&P500: Technology
- Worst Sector in S&P500: Utilities
- Biggest gainers: FSLR +4.9%, LUV +4.5%, NAVI +4.4%, REGN +4.3%, RCL +4.1%
- Biggest losers: CHK -5.9%, EQT -5.6%, SWN -4.2%, RRC -4.1%, NFX -3.9%

***VIX 13.10 (-1.4pts); Treasuries: 2-yr 0.75% (+1bp), 10-yr 1.56% (-3bp), 30-yr 2.28% (-5bp)***

***US movers afterhours***
- CTAS +4.0%; Reports Q1 $1.26 v $1.09e, R$1.29B v $1.29Be; Raises FY17 $4.55-4.63 v $4.42e, R$5.16-5.32B v $5.16Be (prior $4.35-4.45, R$5.15-5.23B)
- NKE -2.6%; Reports Q1 $0.73 v $0.56e, R$9.06B v $8.85Be; Worldwide Futures orders y/y +5% v +8% q/q, v +9% y/y; guides Q2 Rev to grow in mid single digit range; Affirms FY17 Rev to grow in high single digits - earnings call
- FL -1.7%, UA +1.4% in sympathy with Nike
- GALT -50.0%; Phase 2a pilot trial (NASH-FX) with GR-MD-02 in NASH patients with Advanced Fibrosis did NOT meet endpoints

***After extended session***
- ARRY: Prices 18.4M shares of common stock at $6.25/shr (12.7% of shares outstanding)

***Equity Futures (00:30ET): S&P e-mini -0.2%, Dax -0.2%, FTSE100 -0.3%***

***FX / Commodities ranges (00:30ET):***
- EUR 1.1200-1.1200; JPY 100.25-100.65; AUD 0.7665-0.7680, NZD 0.7265-0.7305
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6681 v 6.6646 PRIOR
- Gold -0.1% at 1,329/oz; Oil flat at $44.67/brl; Copper +0.1% at $2.17/lb

***Asian Equity Markets (00:30ET)***
- Nikkei -1.6%, Hang Seng -0.6%, ASX -0.1%, Shanghai -0.3%, Kospi -0.4%

***Key economic data:***
- (CN) China Sept Westpac Consumer Confidence Index: 115.2 v 111.5 prior
- (CN) China Q3 Beige Book: Q3 growth seen exclusively from old engines

***Speakers / Press / Key Themes***
China:
- (CN) China Q3 Beige Book: Q3 growth seen exclusively from old engine; Retail, services and transportation sectors all weakened; Corporate finances strained by weaker profits and cash flow
- USD/CNY: (CN) China state researchers suggest govt should allow bigger moves in CNY amid pressure for depreciation - Chinese press
- (CN) China govt has limited ability for currency intervention - financial press
- (CN) China 2016 retail sales may rise by 10.3% y/y - China Daily
- (CN) China Academy of Social Sciences (CASS): Sees China growing 6.7% in Q3 and 6.6% in Q4 - financial press

Japan:
- (JP) Japan PM Abe: Japan has not escaped from deflation yet; Govt and BOJ to continue to work together to boost growth via all policy measures
- (JP) Japan PM Abe's Economic adviser Hamada: JPY strength is damaging confidence in economy and may hurt BOJ - financial press

Australia:
- (AU) Australia MoF (AOFM) sells A$1B in 2.25% 2028 Bonds; avg yield: 2.0815%; bid-to-cover: 1.84x
- (AU) UBS Global Real Estate Bubble Index report: Sydney market has been overheating since becoming a target for foreign investors several years ago - AFR

***Asia movers***
- Consumer discretionary: Coca- Cola West Co 2579.JP +8.4%, Coca-Cola East 2580.JP +4.2% (SMBC raised to overweight); CyberAgent 4751.JP +5.2% (JPMorgan raised to overweight); Nitori Holdings 9843.JP +1.0% (Q2 result)
- Financials: Evergrande Real Estate Group 3333.HK +1.5% (asset disposal)
- Industrials: Mazda Motor Corp 7261.JP -1.9% (Aug result); Suzuki Motor Corp 7269.JP -0.9% (Aug result); Nippon Express 9062.JP -3.6% (may miss H1 forecast)
- Technology: Toshiba Corporation 6502.JP +1.0% (raises guidance); Yahoo Japan Corp 4689.JP -1.0% (JPMorgan cuts PT)
- Materials: Mitsubishi 8058.JP +1.6% (Goldman raised to buy); Resolute Mining RSG.AU -6.6% (resumes trading after capital raising)
- Energy: AGL Energy AGL.AU +5.0% (guidance)

>>> US After Hours Summary: CTAS +5% following earnings/guidance, SEED


After Hours Summary: CTAS +5% following earnings/guidance, SEED +37% on business units sale news, COTY +3% on S&P 500 addition news... TPX -24%, SONC -7%, NKE -2% following earnings/guidance, GALT -52% after trial failed to meet endpoints

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: CTAS +4.9%, LNDC +0.2% (initially traded lower but is modestly higher in after hours trade)

Companies trading higher in after hours in reaction to news: SEED +36.9% (announces sale of commercial seed production and distribution business for $60 mln), PIR +4.5% (adopts a Shareholder Rights Plan in response to recent accumulations of the co's common stock), HLIT +4.1% (enters into a warrant agreement with Comcast which provides Comcast with the opportunity to acquire shares of common stock of Harmonic based on specific CableOS and other Harmonic product sales), COTY +2.9% (Coty will replace Diamond Offshore in the S&P 500), FRGI +2% (appoints Danny Meisenheimer interim CEO and President of the Company; provides strategic updates),  CXW +0.6% (very light volume - announces corporate restructuring and cost reduction plan), TASR +0.3% (ticking higher - TASER unit announced the purchase of 720 Axon Body 2 cameras and 100 Axon Flex cameras by the Northern Territory Police in Australia)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: TPX -24.3%, SYMX -8.4% (light volume), SONC -6.9%, NKE -2.2%

Companies trading lower in after hours in reaction to news: GALT -51.8% (announces top-line data from exploratory Phase 2a pilot trial; trial also did not meet primary or secondary endpoints; entered into a Securities Purchase Agreement), SCSS -8.4% (TPX sympathy), VSAR -6.2% (commences common stock offering for undisclosed amount), RGSE -4.3% (after surging 150% higher), ARRY -2.1% (commenced an underwritten public offering of $100 mln of shares of its common stock, plus a 30-day option to purchase up to an additional $15 mln of shares of its common stock offered in the public offering), FL -1.8% (following Nike earnings), GSBD -0.9% (light volume-plans to conduct an offering of up to $100 million aggregate principal amount of convertible notes due 2022), GOOGL -0.7% (downgraded to Underperform from Neutral at Wedbush)

>>> US Close Dow+0.74% S&P+0.64% Nasdaq+0.92% Russell+0.44%

Closing Market Summary: Stocks Rise on Rebound in Financials

The stock market ended the Tuesday affair on a higher note as a reversal in the economically-sensitive financial (+0.9%) sector fostered a rebound in the broader market. Other factors impacting today's trade included regrouping after last evening's U.S. presidential debate and strong sector leadership from heavily-weighted consumer discretionary (+1.0%) and technology (+1.2%). The Nasdaq Composite (+0.9%) led the Dow Jones Industrial Average (+0.7%) and the S&P 500 (+0.6%).

Equity indices rose at the start of the session as investors eyed a rebound in the financial space (+0.9%). The group fell 1.5% on Monday as a downturn in European banking names weighed. Deutsche Bank (DB 11.92, +0.07) plunged 7.1% in the prior session after German Chancellor Angela Merkel indicated that the bank would not be eligible for state aid in the event of a capital shortfall. The news continued to weigh on the stock during the overnight session, but shares erased today's losses by afternoon trade. U.S.-listed issues of Deutsche Bank finished higher by 0.6%.

The turnaround in beleaguered financials helped boost risk appetite in the broader market while heavily-weighted industrials (+0.8%), consumer discretionary (+1.0%), and technology (+1.2%) also displayed strength. The broader market was in rally mode after the first U.S. presidential debate went off without major surprises. The CBOE Volatility Index (VIX 13.11, -1.39, -1.23%) declined more than one point after carving out a session high of 14.63% on Monday.

Oil prices remained a weak spot for the second day in a row as the energy component was pressured by developments from Algiers, Algeria. Reports from the International Energy Forum indicated that OPEC and non-OPEC producers were unable to reach a supply control agreement. Furthermore, Saudi Energy Minister Khalid al-Falih stated that he does not expect to reach an agreement during tomorrow's meeting. The energy minister did indicate that the topic could be revived in time for the oil cartel's November 30 meeting. WTI crude finished the day lower by 2.6% ($44.67/bbl; -$1.18).

The benchmark index narrowed its week-to-date loss to 0.2% as eight sectors finished in the green with consumer discretionary (+1.0%) and technology (+1.2%) leading the pack. Conversely, defensively-oriented utilities (-1.3%) and real estate (-0.8%) trailed energy (-0.5%) on the bottom of the leaderboard.

In the technology sector (+1.2%), Alphabet (GOOG 783.01, +8.80) and Microsoft (MSFT 57.95, +1.05) finished higher by 1.1% and 1.9%, respectively. The two names rose following recent speculation that they are mulling takeover offers for Twitter (TWTR 23.72, +0.35). Recall that Salesforce.com (CRM 70.05, -0.14) and Disney (DIS 91.72, -0.24) have also been identified as parties expressing interest in Twitter. Separately, the PHLX Semiconductor Index ended higher by 1.7%, erasing a modest monthly loss.

The consumer discretionary space (+1.0%) also displayed relative strength as F.A.N.G. members Amazon (AMZN 816.11, +16.95) and Netflix (NFLX 97.07, +2.51) outperformed after receiving target price increases from JP Morgan. Separately, Dow component Nike (NKE 55.34, +0.94) rallied 1.7% ahead of this evening's quarterly earnings report.

Domestic banking names paced the advance in the financial sector (+0.9%) as Citigroup (C 46.37, +0.48) and Bank of America (BAC 15.29, +0.20) rebounded 1.1% and 1.3%, respectively. Meanwhile, Wells Fargo (WFC 45.09, +0.21) inched higher by 0.5% after multiple sources signaled that the company is considering executive compensation clawbacks. On a related note, CEO John Stumpf is slated to appear before the House Financial Services Committee on Thursday.

Treasuries ended on a higher note with the long end of the curve outperforming. The yield on the 2-yr note finished flat (0.75%) while the yield on the 10-yr note finished lower by two basis points (1.56%).

Today's participation was below the recent average as fewer than 827 million shares changed hands on the NYSE floor.

Today's economic data included the Case-Shiller 20-city Index for July and Consumer Confidence for September: 

  • The Case-Shiller 20-city Home Price Index for July rose 5.0%, which was below the consensus of 5.1%. This followed the previous month's unrevised reading of 5.1%.
  • The Conference Board's Consumer Confidence Index for September checked in at 104.1 (consensus 98.0) after an upwardly revised 101.8 reading (from 101.1) for August.
    • The September number is the highest since August 2007.

Tomorrow's economic data will include the weekly MBA Mortgage Index and Durable Orders for August (consensus -1.9%), which will cross the wires at 7:00 ET and 8:30 ET, respectively.  The Department of Energy will release its weekly inventory report tomorrow at 10:30 ET.

  • Russell 2000: +9.6% YTD
  • Nasdaq: +6.0% YTD
  • S&P 500: +5.7% YTD
  • Dow Jones: +4.6% YTD

FT : Dior show will mark seismic shift for women designers in luxury

Dior show will mark seismic shift for women designers in luxury

On September 30, at 2.30pm, in the grounds of the Musée Rodin in Paris, the eyes of the fashion industry will be absolutely fixed on Dior’s catwalk show. It’s an event that commands their attention every year but there’s an added frisson of expectation: for the first time in the brand’s near-70-year history, a female designer will be in charge.
Dior’s appointment of the 52-year-old Maria Grazia Chiuri in July has marked a small, subtle but deeply significant change in the landscape of French luxury. Her arrival, from Valentino, followed news that the 45-year-old French designer, Bouchra Jarrar, would be taking over at Lanvin following Alber Elbaz’s abrupt departure last October. Alongside Nadège Vanhee-Cybulski, 38, who was appointed Hermès’ first female designer for two decades in 2014, there are now women at the helm of Céline, Chloé, Alexander McQueen and Sonia Rykiel, some of the most prestigious houses that show in Paris.
None of these designers set up the labels themselves; they were recruited, often by men, but also by women such as Floriane de Saint Pierre. Saint Pierre is probably the most powerful headhunter in the fashion industry. The head of executive search agency Floriane de Saint Pierre et Associés and a new online recruitment platform, Eyes on Talents, is generally obliged not to disclose her clients’ names — though it is known that she placed Christopher Bailey at Burberry. Meeting for mint tea during London Fashion Week, impeccably clad in a black Saint Laurent shirt, trousers and jacket draped over her shoulders, she reminds us that female designers used to be the norm.
“At the first half of the 20th century there were many women shaping the fashion world,” she says. “Madame Grès, Coco Chanel, Nina Ricci, Jeanne Lanvin. In the last decade there have been female entrepreneurs such as Isabel Marant, Roksanda Ilincic and the Olsen sisters, but fewer women at the helm of brands which were founded by men.”
Those times are changing. In addition to the big appointments at Dior and Lanvin, Saint Pierre says the industry is shifting in more seismic ways too. “Something happened this year which I found extremely exciting,” she continues. “The LVMH prize was won by Grace Wales Bonner, Hannah Jinkins won the H&M award, Johanna Senyk of Wanda Nylon took the Andam Award Grand Prize, Angela Luna won one of the Parson’s Womenswear Designer of the Year Awards, and, of the British Fashion Council NewGen recipients for Autumn/Winter 2016, seven out of eight designers were women. These are women who have not only the talent but now the visibility, so I am very curious about the future. Will they become entrepreneurs or be appointed at big brands?”

How far these up-and-coming female creatives will change the face of fashion remains to be seen. At the time of Maria Grazia Chiuri’s appointment, Dior Couture chief executive Sidney Toledano told the Financial Times of his delight in her attention to the atelier. “She’s quick, reactive and a good communicator . . . like Karl Lagerfeld, she understands all the facets of the studio,” He said. “She’s not going to be one of those designers like Moses on the mountain coming down to tell people her vision. Unlike Raf or Galliano [who had their own eponymous brands to work on], she is completely focused on Dior. And in these difficult times you need that agility and communicative skill to be reactive.”
There is a general sense across the industry, especially after the humiliating and shocking episode of John Galliano’s antisemitic rant in a Paris café in 2011, that the era of the showy star designer, with all their eccentric quirks, is over. And that female designers are less likely to draw such attention to themselves.

Clare Waight Keller, creative director at Chloé, says: “I don’t think women are interested in the star status. Women have to work very hard to achieve top positions in big brands, so the last thing one would do is look like work is secondary to our image. I prefer to focus on doing a brilliant job than on my social or public persona, and do the right amount of well-considered press.”
It seems unlikely then, that you will see Grazia Chiuri, a mother-of-two who drove herself to work on a Vespa at Valentino, posting private-jet selfies on Instagram like Marc Jacobs, or making controversial statements about IVF like Domenico Dolce and Stefano Gabbana. But not everyone seems thrilled to be saddled with the quiet designer label, and some are fighting the cliché of the dutiful woman beavering away in the studio.
“For someone described as quiet I seem to spend most of my days talking to others and to myself occasionally,” says Vanhee-Cybulski. “To be honest the industry needs personalities. Everybody secretly craves a diva or an anti-hero and the stories that come with them.”
Probably the most prevailing assumption about female designers is that they are more able to design commercial, wearable clothes than men, and that their clothes tend to be sensual rather than overtly sexy (although tell that to Donatella Versace). Sidney Toledano has described Chiuri’s vision of women as “sensual and poetic”. It’s certainly spoken to many women: along with her design partner Pierpaolo Piccioli, Grazia Chiuri was instrumental in propelling Valentino back to critical acclaim and transforming the company’s fortunes. The duo were appointed co-creative directors of womenswear in 2008, and since 2009 sales have more than quadrupled to €987m.

Women designers have form when it comes to the bottom line. At Céline, revenue has increased dramatically since designer Phoebe Philo arrived in 2008. And in March, Hermes posted 2015 results that noted an 8 per cent growth in the ready-to-wear and accessories division that had benefited “from the success of the latest ready-to-wear collections, especially of Nadège Vanhee-Cybulski’s first collection”. Was her success really due to her female point of view? Vanhee Cybulski isn’t convinced. “I have worked with many talented designers, both male and female, and in my experience . . . gender isn’t what makes you inclined to design bestsellers or masterpieces . . . whether you are a man or a woman, what prevails is the creative fibre.”
Saint Pierre is also reluctant to confirm that women have an advantage. “In my work I never think about gender, I think about who is the best to capture the spirit of the brand. Fashion is about understanding society. It’s very difficult to be creative and design clothes that you can wear, that are connected to the times, but a woman or a man can do it equally well.”
Waight Keller, however, does believe her gender gives her an edge. “It gives you the advantage of understanding the women who buy the clothes. It’s about intuition, knowing how something feels when you wear it, understanding how fabrics fall and react on the body, knowing what women love to express and more importantly, what they don’t.” She adds, “From my perspective, I do believe women design differently to men. I see the difference every day within my team. The men react very objectively whereas the women talk from their feelings about design”.
For Grazia Chiuri’s part, she said when she was appointed, that she appreciated, “the tremendous responsibility of being the first woman in charge of the creation of a house so deeply rooted in the pure expression of femininity.” If anyone can convincingly rewrite the rules of what that means in 2016, it’s probably her. Watch this space.

FT : Sarkozy vows to offer UK exit from Brexit if he wins French poll

Sarkozy vows to offer UK exit from Brexit if he wins French poll

Nicolas Sarkozy would offer Britain a chance to reverse its Brexit vote by negotiating a new treaty for the bloc with Germany immediately after winning back the French presidency next year, he said on Tuesday
Speaking to business leaders in Paris, the former French president said that if elected, he would fly to Berlin with a draft of new EU treaty the day after the second ballot of the presidential election to secure the support of German chancellor Angela Merkel. On May 8, the day after, he would travel to London.
“I would tell the British, you’ve gone out, but we have a new treaty on the table so you have an opportunity to vote again,” Mr Sarkozy said. “But this time not on the old Europe, on the new Europe. Do you want to stay? If yes, so much the better. Because I can’t accept to lose Europe’s second-largest economy while we are negotiating with Turkey over its EU membership. And if it’s no, then it’s a real no. You’re in or you’re out.”
Mr Sarkozy’s proposal may encounter big hurdles, namely Berlin’s reluctance to overhaul the EU institutions and Ms Merkel’s own electoral constraints with federal polls in September 2017. But the idea highlights how fluid the negotiating positions of the EU’s two largest members remain on Brexit ahead of crucial elections.
Theresa May, the UK prime minister, has indicated she will not trigger Article 50 of the EU treaty, which would set the clock ticking on a two-year negotiating period to complete exit talks, this year. But she has stopped short of saying when she would do so. Last week, Downing Street denied claims made by Boris Johnson, foreign minister, that Mrs May had committed to activating the article early next year.

Under pressure from France’s resurgent far right National Front party, Mr Sarkozy, who is vying for the centre-right presidential nomination in November, has promised a grand overhaul of the EU if he returns to power. On Tuesday, he said the new treaty would focus on reforming the Schengen passport-free zone, restricting the European Commission’s prerogatives to a dozen, integrating the eurozone further and halting membership talks with Turkey.
“Maybe it’s time to tell Turkey that its place is in Asia,” Mr Sarkozy said. “I am a staunch European, I would never accept to leave the euro, but Europe doesn’t function, at all. “
A new treaty is the only solution to break anti-EU forces similar to the National Front that are gaining strength across the continent, Mr Sarkozy said.
“Everybody in Europe is annoyed when France and Germany strike deals, but when they don’t, everybody frets,” he said. “And don’t tell me this treaty would be complicated to negotiate. I have a lot of experience negotiating treaties. The worst would be to do nothing.”

Reuters - Telefonica aims to list mobile firm O2 in London this year

Telefonica aims to list mobile firm O2 in London this year - sources - Reuters News

27-SEP-2016 16:36:22
By Pamela Barbaglia

LONDON, Sept 27 (Reuters) - Spain's Telefonica TEF.MC is looking to list about 30 percent of its British mobile unit O2 in what would be one of the biggest initial public offerings (IPOs) on the London market this year, sources told Reuters.

Europe's biggest telecom group wants to use the relative market calm after the turmoil caused by June's Brexit vote to cut its stake in Britain's second-largest mobile firm and has hired UBS UBSG.S, Morgan Stanley MS.N and Barclays BARC.L as global coordinators for an IPO which could value O2 at about 10 billion pounds ($13 billion), the sources said.

An O2 spokesman referred to a Sept. 5 statement by Telefonica when it said it was considering "various strategic options" for O2, including an IPO and that "preparatory work" had begun.

Telefonica had no comment, while Barclays and Morgan Stanley declined to comment and UBS was not immediately available for comment.

Telefonica boss Jose Maria Alvarez-Pallete has asked the banks to speed up the preparatory work, hoping to list O2 in December if market conditions allow, the sources said.

They ruled out a listing in November as the deal remains in the early stages and the U.S. presidential election on Nov. 8 is seen as a potential trigger for market turmoil.

"They are hoping to list O2 at the beginning of December, but Telefonica doesn't want to take unnecessary risks if market conditions deteriorate," one of the sources said.

The deal may be delayed to the first quarter of 2017 in the event of market uncertainty.



TAKEOVER BID?

Telefonica has been reviewing strategic options for O2 since a 10.3 billion pound sale to CK Hutchison Holdings 0001.HK was blocked by Europe's antitrust watchdog in May. (Full Story)

On Sept. 5, chairman Alvarez-Pallete said the company was close to taking a decision on either a partial sale or a listing which was to take place before early 2017. (Full Story)

Telefonica has decided to retain control of O2 rather than sell it all, despite its efforts to cut down its 50 billion euros of debt, the sources said.

O2, which has more than 25 million customers, has long been on the radar screen of private equity funds, but their ambitions were stymied by Britain's vote to leave the EU. (Full Story)

A minority stake listing would still leave the door open for Liberty Global LBTYA.O or another player to launch a takeover bid, another source said, adding that Liberty's John Malone has yet to decide on his next move in Britain. (Full Story)

European listings have recently picked up after a slowdown in capital market deals, mainly due to jitters over Brexit.

On Sept. 23 Danish card payment services company Nets NETStemp.CO finalised a $4.5 billion listing four days earlier than planned, as demand exceeded expectations. (Full Story)

British fitness club chain Pure Gym IPO-GYM.L Group said earlier this month that it had resumed plans to list in London, hoping to raise about 190 million pounds. (Full Story)

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(TechCrunch) You can use encrypted chat app Signal on desktop now

https://techcrunch.com/2016/09/26/signal-comes-to-desktop/?ncid=rss&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&sr_share=twitter

Signal, the encrypted chat app powered by Open Whisper Systems, is finally available as a desktop app.

The free app, which has earned praise from Edward Snowden and security experts like Matt Green and Bruce Schneier for its tough encryption, has long been available for iPhone and Android users. (Signal’s cryptography is also used in many popular messaging apps, including Facebook Messenger and WhatsApp.) But Signal wasn’t available on desktop, which presented a pain point for users who want to seamlessly check their texts across mobile and desktop devices.

Signal rolled out desktop support for Android users in April and today added support for iOS users. Signal will now allow all users to link their mobile accounts to a desktop app, so they can receive their messages on two devices. All iOS users have to do is update Signal on their phones, download the desktop version at signal.org/desktop and scan a QR code to link the new device.

“It works pretty seamlessly, you just authorize a desktop app from your phone. Then you can send and receive messages from your phone or the desktop,” Signal’s lead developer Moxie Marlinspike told TechCrunch.

Adding desktop support for encrypted chat apps can be tricky because your decryption key needs to be stored safely across your devices. But that presents a challenge — how do you shuffle this key around to all your devices without decreasing your security?

Apple solved the challenge for iMessage by using unique keys for every device and sending your messages to each device in duplicate. Marlinspike says the solution for Signal is complicated, but that users will keep the same identity key on all their devices. “There’s an identity key in Signal. When you link or approve a desktop install, that gets moved to the desktop. All your clients have access to that, which allows for your identity or fingerprint to be the same,” he explained.