>>> What to look at today - 9th of September 2016

Dow -0.25% S&P-0.22% Nasdaq -0.46% Russell -0.21%
US Market closed lower after ECB Meeting. During his press conference, President Draghi noted that the central bank did not see a need to expand the asset purchase program at this time. However, the central bank did affirm plans to continue purchasing assets through March 2017 or beyond, if needed. Equities retraced opening losses through the first half of trade, benefiting from a rally in crude oil futures. The energy component rallied throughout the session as investors pored over a better-than-expected reading of the Department of Energy's weekly inventory data. The EIA reported that crude oil stockpiles fell by 14.51 million barrels (consensus: +0.22 million) while gasoline inventories declined by 4.21 million barrels (consensus: -0.71 million). WTI crude ended the day higher by 4.8% ($47.66/bbl; +$2.18). Seven sectors ended in the red with consumer staples (-0.5%), consumer discretionary (-0.8%), and technology (-0.9%) leading to the downside. Conversely, health care (+0.1%), utilities (+0.4%), and energy (+1.7%) topped the board. AAPL -2.6%, HPE -3.2%, NKE -2.7%. Biotechnology demonstrated relative strength, evidenced by the 0.7% gain in the iShares Nasdaq Biotechnology ETF (IBB 288.03, +1.93). The sub-group finished ahead of the broader health care space (+0.1%) as Alexion Pharmaceuticals (ALXN 130.06, +4.97) outperformed. Meanwhile, Mylan Labs (MYL 40.57, +0.26) rebounded 0.7%. In the broader sector, Eli Lilly (LLY 79.89, +1.30) jumped 1.7% after being upgraded to "Overweight" at JP Morgan. Volume were in line with average @ 818mil shares. US After Hours FNSR +13%, ZUMZ +4% following earnings/guidance/SSS, LPTN +28% on merger news... VMEM -25% following earnings/guidance, WMB -3% after Enterprise drops pursuit. Asian equity markets are mixed in the wake of modest losses in US hours. Korea's Kospi is under particularly heavy pressure amid continued saber-rattling by the North, this time with another nuclear test and pledges to continue to develop its nuclear arsenal. China markets fared better, with soft CPI data potentially renewing the case for additional policy easing by the PBoC. In Japan, BOJ Gov Kuroda held one of his regular lunch meetings with PM Abe. Afterwards, Kuroda said he has explained the central bank's comprehensive policy review to Abe, but he did not offer any comments on monetary policy.

Nikkei +0.11% Hang Seng +1.71% CSI -0.14% Shanghai -0.08%

Eur$ 1.1279 CNH 6.6890 CNY 6.6785 JPY 102.12 GBP 1.3327 CHF 0.9719 RUB$64.0053 WTI$47.23(-0.82%)

S&P +0.02% EuroStoxx +0.03% Dax -0.06% SMI +0.14%

Macro :
- Fed Urges Congress to Ban Banks From Buying Stakes in Companies

Keep an eye on :
- A2A IM : Telecom Italia Signs MOU With A2A on Fiber Network: Sole
- AI FP : Air Liquide Completes Sale of U.S. Assets to Matheson Tri-Gas
- BAYN GY : Monsanto-Bayer Talks Said to Be ‘Strongly Progressing’: Fox
- BP IM : Banco Popolare, Pop Milano Merger Approved by Bank of Italy
- BOI FP : Boiron 1H Net Rises to EU26.5m
- BMPS IM :  Boiron 1H Net Rises to EU26.5mMonte Paschi Says CEO Viola Agrees to Step Down
- BMPS IM : Monte Paschi’s Board to Meet by Sunday to Name New CEO: Sole, May Name BAML’s Marco Morelli as CEO: Reuters
- BRBY LN : Burberry Cuts Prices in Hong Kong and China After GBP Slide:SCMP
- CBK GY : Commerzbank to Restructure Small, Medium Bus. Dept:Handelsblatt
- NOVOB DC : Novo Nordisk Recalls Six Batches of Glucagen Hypokit in U.S.
- RUI FP : Rubis 1H Net Beats, Co. Sees 2H Consolidating Growth Over FY
- SAF FP : Safran I&S attracts interest from Impala - Les Echos
- SHA GY : Car-Parts Maker Schaeffler Ready to Pursue Acquisitions - http://bit.ly/2bX37rl
- SESG FP : SES to Build New Teleport on Isle of Man
- SNAPCHAT IPO : Snapchat Said to Hire Morgan Stanley for Debt Financing: Recode
- TEF SM : Telefonica steps up Telxius Telecom's offering, to be launched on 16 September - El Confidencial
- TIT IM : Telecom Italia Signs MOU With A2A on Fiber Network: Sole
- UCG IM : UniCredit Said to Consider Capital Increase of Up to EU10b: FT
- VIV FP : Metro-Goldwyn-Mayer Cuts 2016 Adj Ebida View on ‘Ben-Hur’ Charge
- VOW GY : VW Rejects EU Demand to Compensate European Customers: Welt

>>> Europe : Brokers Upgrades & Downgrades - 9th of September 2016

>>> Up
*DKSH RAISED TO HOLD VS REDUCE AT HSBC
*G4S RAISED TO OVERWEIGHT VS UNDERWEIGHT AT MORGAN STANLEY
*HANNOVER RE RATED NEW EQUALWEIGHT AT BARCLAYS, PT EU99.7
*MUNICH RE RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*ORDINA RAISED TO BUY VS HOLD AT ING
*RANDGOLD RESOURCES RAISED TO BUY VS NEUTRAL AT UBS
*SPORTS DIRECT RAISED TO BUY VS SELL AT PEEL HUNT

>>> Down
*BRENNTAG CUT TO REDUCE VS HOLD AT HSBC
*BUNZL CUT TO UNDERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*BUNZL CUT TO HOLD VS BUY AT HSBC
*DEBENHAMS CUT TO REDUCE VS HOLD AT HSBC
*INCHCAPE CUT TO NEUTRAL VS OUTPERFORM AT EXANE BNP
*INDITEX CUT TO NEUTRAL VS OUTPERFORM AT EXANE BNP
*KINGFISHER CUT TO NEUTRAL VS OUTPERFORM AT EXANE BNP
*LENZING CUT TO ’HOLD’ AT BAADER-HELVEA
*NOVO NORDISK CUT TO ’NEUTRAL’ AT JPMORGAN
*ROCKHOPPER CUT TO NEUTRAL AT MACQUARIE BEFORE CEASING COVERAGE
*SIGNET CUT TO NEUTRAL VS OUTPERFORM AT EXANE BNP
*SPORTS DIRECT CUT TO UNDERPERFORM VS NEUTRAL AT EXANE BNP
*SUNRISE CUT TO HOLD AT KEPLER CHEUVREUX
*SWISS RE CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*WHITEWAVE FOODS CUT TO MARKET PERFORM AT BERNSTEIN

>>> PT Change


>>> Initiation
*BEIERSDORF RATED NEW SELL AT BERENBERG, PT EU78
*BRENNTAG RATED NEW BUY AT JEFFERIES
*COTY RATED NEW SELL AT BERENBERG, PT $23
*ESTEE LAUDER RATED NEW BUY AT BERENBERG, PT $105
*KBC GROEP RATED NEW OUTPERFORM AT MACQUARIE
*L’OREAL RATED NEW HOLD AT BERENBERG, PT EU172
*SCOR RATED NEW OVERWEIGHT AT BARCLAYS, PT EU31.5
*SUPERGROUP RATED NEW NEUTRAL AT EXANE

>>> Call
>> Stock
*BIOGEN REMOVED FROM SUSTAIN FOCUS LIST AT GOLDMAN
*BORGWARNER REMOVED FROM SUSTAIN FOCUS LIST AT GOLDMAN
*BURBERRY REMOVED FROM SUSTAIN FOCUS LIST AT GOLDMAN
*CENTRICA REMOVED FROM SUSTAIN FOCUS LIST AT GOLDMAN
*FACEBOOK ADDED TO SUSTAIN FOCUS LIST AT GOLDMAN

>>> Asian Update

Asia Mid-Session Market Update: China inflation slows to 10-month low; BOK on hold, while North Korea conducts another nuclear test


***Economic Data***
- (CN) CHINA AUG CPI Y/Y: 1.3% V 1.7%E; 10-month low
- (CN) CHINA AUG PPI Y/Y: -0.8% V -0.9%E; 54th consecutive month of decline; smallest decline since Apr 2012
- (KR) BANK OF KOREA (BOK) LEAVES 7-DAY REPO RATE UNCHANGED AT 1.25%; AS EXPECTED
- (JP) JAPAN AUG M2 MONEY STOCK Y/Y: 3.3% V 3.3%E; M3 MONEY STOCK Y/Y: 2.8% V 2.9%E
- (AU) AUSTRALIA JULY HOME LOANS M/M: -4.2% V -1.5%E; biggest decline in 6 months
- (NZ) NEW ZEALAND AUG CARD SPENDING M/M: -0.4% V +0.3%E; TOTAL M/M: -0.8% V +0.4% PRIOR
- (PE) PERU CENTRAL BANK (BCRP) LEAVES REFERENCE RATE UNCHANGED AT 4.25%; AS EXPECTED

***Index Snapshot (as of 04:00 GMT)***
- Nikkei225 -0.2%, S&P/ASX -0.8%, Kospi -1.3%, Shanghai Composite flat, Hang Seng +1.0%, Sep S&P500 flat at 2,177

***Commodities/Fixed Income***
- Dec gold +0.1% at $1,342/oz, Oct crude oil -0.9% at $47.21/brl, Dec copper flat at $2.10/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 1.2 tonnes to 950.6 tonnes; 2nd straight decline
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.6684 V 6.6620 PRIOR; 2nd straight weaker setting
- (JP) BOJ offers to buy ¥70B in JGBs with maturity less than 1-yr, ¥400B in 1-3yr JGBs, ¥420B in 3-5yr JGBs and ¥1.25T in T-bills
- (AU) Australia MoF (AOFM) sells A$900M in 2.75% 2019 Bonds; avg yield 1.5262%; bid-to-cover 3.68x

***Market Focal Points/FX***
- Asian equity markets are mixed in the wake of modest losses in US hours. Korea's Kospi is under particularly heavy pressure amid continued saber-rattling by the North, this time with another nuclear test and pledges to continue to develop its nuclear arsenal. Recall North Korea has already come under international condemnation for a ballistic missile test from a submarine last month. China markets fared better, with soft CPI data potentially renewing the case for additional policy easing by the PBoC. Hong Kong gainers included casino stocks on positive outlook from Deutsche Bank and HKEX on reports that CIRC may start trials allowing insurance funds in Shanghai-Hong Kong stock connect. Oct WTI crude oil has pared some of the gains of the past 48 hours after today's spike on 17-year high draw in DOE inventories. In FX, USD/JPY fell nearly 50pips below ¥102 handle, AUD/USD traded in a 20pip range above 0.7635, and NZD/USD was in a 20pip range around 0.74.

- China CPI hit a 10-month low at 1.3%, down from 1.7% prior, though much of the slowdown was attributed to lower food prices. Food CPI fell to 1.3% v 3.3% prior, while non-food was unchanged at 1.4%. Wholesale prices remained in deflation for the 54th straight month, but it was also the smallest annualized decline since early 2012. Following inflation data release, national Stats Bureau remarked that this is a critical period for structural optimization. Separately, PBoC advisor Fan Gang warned that while questionable bank credit could reach 5-6% of lending, banks are not in a crisis right now. Fan added the economy has likely bottomed, even if growth is not evident at this time.

- What was initially reported as a modest earthquake turned out to be another nuclear test by North Korea, and this time the energy magnitude was rumored to be twice the most recent one. South Korea Pres Park and Japan officials condemned the test and were both said to consider unilateral expansion of sanctions and other measures. North Korea's state media KCNA also confirmed the test, announcing the country now has a new ability to standardize nuclear warheads and mount them onto rockets. Also on the peninsula, Bank of Korea stood pat at 1.25% as expected in a unanimous decision with a fairly neutral bias. BOK said economic sentiment has improved and inflation would remain low before rising while also warning about increase in household debt.

- In Japan, BOJ Gov Kuroda held one of his regular lunch meetings with PM Abe. Afterwards, Kuroda said he has explained the central bank's comprehensive policy review to Abe, but he did not offer any comments on monetary policy. USD/JPY softened briefly on Kuroda remarks when he said the two did not discuss the topic of BOJ buying foreign bonds as part of its new QQE policy options.

***Equities***
US equities / ADRs:
- RH: Reports Q2 $0.44 v $0.29e, R$543M v $530Me; +14.1% afterhours
- FNSR: Reports Q1 $0.38 (adj) v $0.30e, R$341M v $334Me; Guides Q2 $0.44-0.50 v $0.32e, R$355-375M v $343Me; +12.6% afterhours
- ZUMZ: Reports Q2 -$0.03 v -$0.08e, R$178.3M v $178Me; +6.0% afterhours
- LOCO: To enter S&P SmallCap 600 index on Sept 12th; +5.8% afterhours

Notable movers by sector:
- Consumer staples: BGF retail Co 027410.KR -11.4% (Chairman to sell stake)
- Financials: Greentown China 3900.HK +2.8% (Aug result); Woori Bank 000030.KR -0.9% (Posco considers bid for stake); China Galaxy Securities Co 6881.HK +4.2% (Aug result); Hong Kong Exchanges & Clearing 388.HK +6.8% (China allows insurance funds in stock connect)
- Industrials: Takata Corp.7312.JP +1.5% (to take bids from 7 rescuers)
- Technology: LG Display Co 034220.KR +0.9% (Berstein cuts to Market Perform); AU Optronics Corp 2409.TW -1.3% (Berstein cuts to Market Perform); Kyocera Corp 6971.JP +2.2% (BNP Paribas raised to Hold)
- Energy: Origin Energy ORG.AU +5.9% (new CEO); Beach Energy BPT.AU +3.2% (oil gains)
- Healthcare:Sigma Pharmaceuticals SIP.AU +7.8% (UBS raised to Buy)

>>> US After Hours Summary: FNSR +13%, ZUMZ +4% following earnings/gu


After Hours Summary: FNSR +13%, ZUMZ +4% following earnings/guidance/SSS, LPTN +28% on merger news... VMEM -25% following earnings/guidance, WMB -3% after Enterprise drops pursuit

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: FNSR +12.8%, ZUMZ +3.6% (also reports August comps fell 1.1% vs. -10.7% last year), DLTH +2.9%, EGAN +2.9% (thinly traded)

Companies trading higher in after hours in reaction to news: LPTN +28.1% (Lpath announces definitive merger agreement with Apollo Endosurgery), LOCO +6.5% (to join the S&P SmallCap 600), SWFT +5.1% (Swift Transportation CEO Jerry Moyes to retire, COO Richard Stocking has been unanimously appointed by the Board as CEO), OCLR +4.8% (Kopp Family Office discloses 6.9% passive stake; also FNSR sympathy), LITE +2.7% (FNSR sympathy), WSM +1.6% (RH sympathy),  HZNP +0.7% (light volume; amends commercial supply agreement with Bio-Technology General)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: VMEM -25%, PPHM -9.3%, VNCE -7.4% (light volume), XTLY -3.5%

Companies trading lower in after hours in reaction to news: LNTH -10.3% (announces an underwritten public offering of 5.2 mln shares of common stock), NEP -4.1% (announces agreement to acquire indirect 24% interest in Desert Sunlight Investment Holdings, announces offering of common units), BAS -4% (after closing near highs - up 85% on the day), ETRM -2.8% (ticking lower, sends notice of special meeting to stockholders to seek approval for a reverse stock splitat a ratio of between 1-for-10 and 1-for 20), WMB -2.6% (Enterprise withdraws indication of interest in Williams Cos; Williams Cos will consolidate the number of Operating Areas within the co from five to three by early 2017, provides biz highlights) ESTE -2.3% (light volume - files for 12,081,740 share common stock offering by selling shareholders), WPZ -1% (on Enterprise / Williams Cos news) PDCE -0.9% (announces a concurrent underwritten public offering consisting of 6.5 mln shares of common stock & $100 mln convertible senior notes due 2021), VRX -0.2% (Allergan CEO on CNBC says not interested in acquiring Valeant, not looking at doing transformational M&A)

>>> US Close Dow -0.25% S&P-0.22% Nasdaq -0.46% Russell -0.21%

Closing Market Summary: Averages End Lower as ECB Disappoints

The stock market ended the Thursday affair modestly lower as the latest directive from the European Central Bank and commentary from ECB President Mario Draghi raised some concerns regarding the future of the central bank's asset purchase program. The Nasdaq Composite (-0.5%) finished behind the Dow Jones Industrial Average (-0.3%) and the S&P 500 (-0.2%).

The major averages began the day on a lower note as inaction from the European Central Bank weighed on European bourses. The central bank held its key interest rates at record lows and maintained the size and scope of its asset purchases. During his press conference, President Draghi noted that the central bank did not see a need to expand the asset purchase program at this time. However, the central bank did affirm plans to continue purchasing assets through March 2017 or beyond, if needed.

Equities retraced opening losses through the first half of trade, benefiting from a rally in crude oil futures. The energy component rallied throughout the session as investors pored over a better-than-expected reading of the Department of Energy's weekly inventory data. The EIA reported that crude oil stockpiles fell by 14.51 million barrels (consensus: +0.22 million) while gasoline inventories declined by 4.21 million barrels (consensus: -0.71 million). WTI crude ended the day higher by 4.8% ($47.66/bbl; +$2.18).

Sellers pressed the broader market shortly after midday as heavily-weighted consumer discretionary (-0.8%) and technology (-0.9%) weighed. The benchmark index managed to maintain technical support near the 2180/2175 price level, finishing the day above its 20-day simple moving average (2180.50). Seven sectors ended in the red with consumer staples (-0.5%), consumer discretionary (-0.8%), and technology (-0.9%) leading to the downside. Conversely, health care (+0.1%), utilities (+0.4%), and energy (+1.7%) topped the board.

The influential technology sector (-0.9%) lagged as top-weighted Apple (AAPL 105.52, -2.84) fell 2.6%. The Dow component was under pressure after announcing that it will no longer release iPhone pre-orders figures. However, the company did reaffirm its fourth-quarter guidance. Meanwhile, Hewlett Packard Enterprise (HPE 21.38, -0.71) declined by 3.2% after reporting a mixed quarter and issuing below-consensus guidance for the fourth quarter.

In the consumer discretionary space (-0.8%), department store names underperformed following the Goldman Sachs 23rd Global Annual Retailing Conference. Kohl's (KSS 43.01, -1.16) and Macy's (M 36.00, -1.19) ended lower by 2.7% and 3.2%, respectively. Elsewhere, Dow component Nike (NKE 56.17, -1.55) ended behind the price-weighted index, declining 2.7%. The stock was under pressure after being downgraded to "Neutral" from "Overweight" at Piper Jaffray.

Biotechnology demonstrated relative strength, evidenced by the 0.7% gain in the iShares Nasdaq Biotechnology ETF (IBB 288.03, +1.93). The sub-group finished ahead of the broader health care space (+0.1%) as Alexion Pharmaceuticals (ALXN 130.06, +4.97) outperformed. Meanwhile, Mylan Labs (MYL 40.57, +0.26) rebounded 0.7%. In the broader sector, Eli Lilly (LLY 79.89, +1.30) jumped 1.7% after being upgraded to "Overweight" at JP Morgan.

Treasuries ended sharply lower with the long end of the curve demonstrating relative weakness. The yield on the 10-yr note rose seven basis points (1.61%) while the yield on the 2-yr note ticked higher by three basis points (0.77%).

Today's participation was above the recent average as more than 818 million shares changed hands on the NYSE floor.

Today's economic data included weekly initial claims and Consumer Credit for July: 

  • Initial claims for the week ending September 3 dipped by 4,000 to 259,000 (consensus 265,000).
    • The latest report marked the 79th straight week that initial claims have been below 300,000 and it dropped the four-week moving average for the series to 261,250 from 263,000.
  • Continuing claims for the week ending August 27 decreased by 7,000 to 2.144 million.
    • The four-week moving average for continuing claims fell to 2.154 million from 2.158 million.
  • Total outstanding consumer credit increased by $17.7 billion in July (consensus $16.0 billion) after increasing an upwardly revised $14.5 billion (from $12.3 billion) in June.
    • In the preceding 12-month period leading up to July, consumer credit had risen by an average of $17.3 billion.

Tomorrow's economic data will be limited to Wholesale Inventories for July (consensus 0.0%), which will cross the wires at 10:00 ET. 

  • Russell 2000: +10.7% YTD
  • S&P 500: +6.7% YTD
  • Dow Jones: +6.1% YTD
  • Nasdaq: +5.0% YTD

Re/code.net : Apple’s iPhone upgrade program: How to turn your 6s into a 7

Apple’s iPhone upgrade program: How to turn your 6s into a 7

Basically, head to the nearest Apple Store.

Apple shook up the iPhone buying experience last year with the addition of the iPhone Upgrade Program, which lets people level up their phones each year.

That means those who signed up a year ago (and even some who have signed up more recently) can upgrade to the iPhone 7.

Here’s how that will work:

First of all, you have to have been enrolled in the program at least six months and have made the equivalent of 12 payments (so if you haven’t made 12 yet, you’ll have to pay the difference to upgrade your phone).

Assuming that condition is met — and you still have your phone to trade in — you can make the exchange at a nearby Apple Store. You’ll need two forms of ID, plus a credit card and your Social Security number (they will run a new credit check). And you’ll need to know your current wireless account password.

If your current phone is damaged, you can still trade it back, but will have to pay the AppleCare deductible for the type of damage it has.

It’s also a good time to consider if you like your carrier, as the Apple Upgrade Program also allows you to change providers anytime you want. And there’s a reason to think about this now.

Last year’s iPhone worked on all four major carriers. This year, Apple has two models, so if you get the one for AT&T and T-Mobile, it won’t work later on Sprint or Verizon.

Also, remember: You don’t have to trade in your phone. Technically, you are buying the phone in 24 equal payments, so another option is to keep the phone you’ve got, and after two years you will own it outright. If you trade it in for a new iPhone, that two-year clock starts over.

Apple has more details on its site, as well as a way to check whether you are eligible. Still not totally clear is just how Apple will decide who gets priority for the new iPhone among those who are upgrading, those new to the program and those buying a phone outright.

Many carriers also have their own early upgrade programs for those who buy or lease a phone through them. Sprint, in particular, last year launched its iPhone Forever program, which gives people who lease an iPhone from Sprint the right to trade in for a new one every year.

If you are thinking about the new iPhone, whether or not you are part of an early upgrade program, there are some pretty interesting limited-time offers from the carriers.

T-Mobile is offering those who own an iPhone 6 or iPhone 6s the option to trade it in for a free iPhone 7, as is Sprint.

AT&T has its own free iPhone 7 offer, but it’s got a lot more conditions. You have to be an AT&T television customer (or sign up for new service), transfer a line to AT&T and trade in your old smartphone.

FT : John Malone’s Liberty Media aims to drive F1 into digital age

John Malone’s Liberty Media aims to drive F1 into digital age

In taking over Formula One, John Malone will aim to restart the sport’s stalling fortunes in the digital age.
The billionaire controlling shareholder of Liberty Media, the US group, struck a complex deal to take over the racing competition on Wednesday night, signalling an intent to rejuvenate F1 for younger, digital audiences while attempting to boost interest in markets such as the US.

The deal could be a major turning point for the sport, which has been owned by private equity group CVC Capital Partners for over a decade. It remains popular with millions of racing fans — in particular in key markets in Europe — but has faced criticism for failing to modernise amid a long-term decline in its global audience.
Mr Malone will not be a back seat owner. According to documents seen by the Financial Times and presented to investors on Wednesday, the 75-year-old businessman nicknamed the “Cable Cowboy” will personally own 3 per cent of the sport’s new parent company.
This will make Mr Malone a larger shareholder than F1’s long-time chief executive Bernie Ecclestone, who will own just 2 per cent under the new structure. Mr Ecclestone’s family trust, Bambino Holdings, will also reduce its shareholding to 5.4 per cent.
Liberty Media has agreed a two stage deal with CVC, F1’s biggest shareholder, taking an initial 18.7 per cent stake in the sport for $746m. Once the deal is approved by regulators and the sport’s governing body, Liberty will pay a total of $4.4bn in cash and shares for the business as well as assume debt to give F1 an overall enterprise value of $8bn.
Liberty will end up with a stake in the new holding company of about 35 per cent, with the remainder controlled by CVC and other existing F1 shareholders.

Chase Carey, the former executive vice-chairman of Rupert Murdoch’s 21st Century Fox, has been appointed F1’s chairman, replacing Peter Brabeck-Letmanthe, the chairman of Nestlé.
There are several immediate challenges for Mr Carey, not least the need to build a working relationship with Mr Ecclestone, who remains F1’s chief executive and who built the sport from one of niche interest into a global television phenomenon.
Key to this success was selling the series as a package to broadcasters around the world, while suffusing the sport with a glamorous image that drew elite sponsors and new audiences. However, TV numbers have fallen in key markets such as the UK as the sport has moved to pay-TV broadcasters.
Mr Carey is seen to have the expertise and connections from his time at Fox to strike deals with online media channels, and gain greater exposure in markets where F1 has a relatively small following.
This could include creating services that would allow fans to watch races streamed to mobile devices, for example, in a move that would break the sport’s reliance on television broadcasting revenues and European audiences.
“Give it all the credit for what’s been built, [but] there’s an opportunity to take F1 to another level,” said Mr Carey, adding that there is an “untapped digital market [that] F1 has only scratched the surface on.”

By bringing F1 into his global media empire, Mr Malone can also seek to draw more subscribers to Liberty’s cable services and television channels, which are facing their own challenges from newer digital streaming services. Ownership of exclusive content is crucial in this battle for subscribers.
Traditional media companies face growing competition from digital players such as Facebook, YouTube and Twitter, which means it has become increasingly important to own valuable sports rights assets that attract drive big audiences.
“There are very few assets in sport that you can own end to end,” said Mark Oliver, chief executive of sports media consultancy Oliver & Ohlbaum.
But, as Mr Oliver adds, F1 is “also profitable and throws off a lot of cash” which means that the business is valuable in its own right.
Broadcasting revenues account for up to 35 per cent of F1’s annual revenues of more than $1.8bn. Race promotion accounts for another third, 15 per cent comes from advertising and sponsorship, with the rest made up from hospitality, TV production, licensing and other sources.
According to the internal documents, F1 has negotiated long-term deals worth $9.3bn through to 2026 — a five times increase on the existing level of revenue.
“Sponsorship and digital can be pushed a lot harder,” adds Mr Oliver. “The new management team will really be looking to exploit these areas.”
Key to F1’s past success has been the ability to sell to sponsors the opportunity to reach one of the most loyal, global followings in sports with races in 21 different countries.

And analysts say that if the racing competition can crack the US — where audiences remain muted in spite of decades of races in the country given the popularity of Nascar — then Liberty stands to make even further inroads with sponsors and broadcasters.
Liberty Media’s understanding of the US sports market — it owns the Atlanta Braves baseball team — and live events through its 34 per cent stake in the music promoter Live Nation could further help the sport grow in the US.
“There are things we can learn from the American way, particularly in the digital side and things that have worked here but not there,” said Robert Fearney, deputy team principal for the Force India F1 team.
The deal has risks. F1 carries $3.6bn of net debt and, according to analysts at Citi, long terms profits and revenues could come under pressure from teams demanding a larger slice of the pie.
In a note, Citi said: “The bottom line is this: we don’t like this transaction. Formula One seems more like a trophy asset to us. But, it’s not an asset that confers significant financial or strategic benefits.”
But the danger to Mr Malone and his Liberty empire was that after 10 years of CVC in F1’s driving seat, another media company might have overtaken the media group to snap up the sport.
“Ultimately if you are a media company, it’s better you own it rather than someone else,” said Mr Oliver.

(Handelsblatt) Car-Parts Maker Schaeffler Ready to Pursue Acquisitions

Car-Parts Maker Schaeffler Ready to Pursue Acquisitions


Car-parts maker Schaeffler is ready to start pursuing acquisitions again after reducing its debt load, the company’s chief executive told Handelsblatt in an exclusive interview.

“For our strategic orientation, it’s important the we strengthen select areas in terms of technology and also make acquisitions here and there,” Klaus Rosenfeld told Handelsblatt.

Schaeffler, Germany’s fifth-largest car-parts maker, has been reluctant to make acquisitions since a bid to acquire rival Continental in 2008 left the company with billions in debt and near collapse. Schaeffler still owns a 46-percent stake in Continental.

In recent years, Schaeffler has managed to reduce its debt load from the botched deal. Mr. Rosenfeld said the company recently secured additional refinancing and now has enough breathing room for smaller acquisitions in the three-figure million range.

“We are in a situation in which we have totally difference financial flexibility,” Mr. Rosenfeld said.