UniCredit may price shares in cash call with 30-40 pct discount-source - Reuters

UniCredit may price shares in cash call with 30-40 pct discount-source - Reuters News

MILAN, Jan 11 (Reuters) - UniCredit CRDI.MI may price shares in an upcoming 13 billion euro ($14 billion) cash call with a 30-40 percent discount, a source close to the matter said on Wednesday, confirming a press report which drove shares down 3 percent.
The source said no final decision had yet been taken. UniCredit declined to comment.
The source said the bank was considering pricing new shares at between 1.2 euros and 1.3 euros each.
"It's a possibility that's being studied," the source said.
The stock fell 2.7 percent to 2.608 euros by 0838 GMT with traders saying sales had been triggered by Il Messaggero daily, which first reported details of the share issue pricing.
A second source close to the matter said UniCredit could launch the share issue soon after it approves full-year results on Feb. 9.

(Janus) B.Gross - Monthly Outlook - US 10y 2.6% is the trigger for BEar Market

And this is my only forecast for the 10-year in 2017. If 2.60% is broken on the upside – if yields move higher than 2.60% – a secular bear bond market has begun. Watch the 2.6% level. Much more important than Dow 20,000. Much more important than $60-a-barrel oil. Much more important that the Dollar/Euro parity at 1.00. It is the key to interest rate levels and perhaps stock price levels in 2017.."


"...The assessment of future growth and associated risk spreads is still uncertain of course. President-elect Trump tweets and markets listen for now, but ultimately their value is dependent on a jump step move from the 2% real GDP growth rate of the past 10 years to a 3%-plus annual advance. 3% growth rates historically have propelled corporate profits to a somewhat higher clip because of financial and operating leverage dependent on higher growth. 2% or less typically has smothered corporate profits. The 1% difference between 2 and 3 is therefore critical. We shall see whether Republican/Trumpian orthodoxy can stimulate an economy that in some ways is at full capacity already. To do so would require a significant advance in investment spending which up until now has taken a backseat to corporate stock buybacks and merger/acquisition related uses of cash flow. "

"...The critical question of interest rates and the future level of the 10-year Treasury is equally challenging. While the Fed has begun to tighten policy after abandoning Quantitative Easing several years ago, other major central banks continue to stoke the fire with as much as $150 billion of monthly buybacks. With the pinning of Japanese JGB 10-year yields at near 0% and the ongoing dovishness of Draghi’s ECB, global arbitrage effectively caps the 10-year at 2.4% to 2.6% levels. Currency adjusted yield pickups of 70 basis points by selling 10-year JGB’s or German Bunds and buying U.S. Treasuries, outline the artificial pricing of our 10- year, even as inflation moves higher and short term yields are raised by the Fed once, twice, or three times in the next 12 months."

>>> Pre Market Indications

ML
* ENGIE - $1.1bn/ 90m shrs priced at 11.4 (4.4% discount); GS/SG on the deal...
SPECTRIS - We double UPGRADE to Buy, PO 2600p. Upgrade ests by 4-9% (2446)+2-3%
T.WIMPEY - FY exp at the upper end of cons range. Completions +4% (178)...+2-3%
ABB - We UPGRADE to Buy from Neutral, PO CHF26.5. Added to Europe 1 (22.5)..+2%
PAGEGROUP - Solid. Q4 org fee growth +3.8%. FY EBIT to top end of exp (400).+2%
SAINSBURY - LfL ex fuel +0.1% vs BAML -0.7%. Improvement qtr on qtr +2%(264)+2%
NAT EX - Reached a conditional agreement with Trenitalia to sell c2c (355p).+2%
BRENNTAG - Remains our top pick in biz services. Added to Europe 1 (52).....+1%
ALFA LAVAL - We UPGRADE to Neutral. Positioning -ve, limited downside (157).+1%
SPIRAX - We UPGRADE to Buy, PO 4600p. Tends to outgrow its UK peers (4325)..+1%
INTERTEK - We UPGRADE to Neutral from Underperform, new PO 3650 (3501.7p)...+1%
VOLKSWAGEN - Confirms draft $4.3bn settlement with US on Diesel issue (150).+1%
SEGRO - Strong end to '16. Guide to top end of consensus range for NAV (477)+1%
KERRY - We reinstate coverage with a BUY rating & a PO of EUR 79 (EUR70)....+1%
ATOS - We UPGRADE to Neutral, taking our PO to EUR 107 from EUR 90 (104)....+1%
MINERS - Copper u/c, Iron Ore fut -0.8% with BHP OZ +2.6%, RIO OZ +3.89%..+0.5%
TESCO - Positive read across from Sainsbury. Stock +1.6% yday on MRW (214)+0.5%
ROCHE - Senti -ve that MRK announce filing for lung cancer accepted (242).-0.5%
LEGRAND - We DOWNGRADE to Neutral. Valn is capped by higher bond yields (53)-1%
ATLAS COPCO - We DOWNGRADE to Underperform from Neutral on mining risk (284)-1%
MITIE - We DOWNGRADE to Underperform. Avoid EU facilities mgmt names (213)..-1%
METSO - We DOWNGRADE to Underperform from Neutral, taking PO to EUR26.5 (27)-1%
SCHNEIDER - We DOWNGRADE to Neutral on less upside, new PO EUR 70 (66.3)..-1-2%
ASSA ABLOY - We DOWNGRADE to Neutral, PO SEK 185. Take off Europe 1 (162.6).-2%
BODYCOTE - We double DOWNGRADE to Underperform from Buy rating (627.9p)...-2-3%
TULLOW - -ve. TEN prodn being guided to 50kbd from 65kbd previously (312p).-3%
COBHAM - Warning. Bottom line new guidance is a 6% d/g & cancel divi (150)-8-9%


RBC
*BOUYGUES: +2% gets $1.8B Hinkley Point nuclear plant contract.
*COBHAM: -10% FY group trading profit below guidance, not recommend final dividend.
*ELECTROLUX: +1% on US International Trade Commission ruling.
*ENGIE: -4% AFP: France now selling 4.1% of ENGIE, 100M shares at €11.4 p/share.
*FOXTONS: -15% FY '16 adj EBITDA lower in "challenging" market.
*NEX: +1% plans to sell C2C rail business for £70M to TREN ITALIA.
*PAGE: +5% organic net fee growth beat +3.8%, FY '16 op profit top end of range.
*PARAGON: 0% FT: final stage bid for BRADFORD MORTGAGES.
*SAGA: +1% H2 trading strong, FY '17 on track.
*SBRY: +2% Q3 LFL retail sales ex-fuel +0.1% v -0.8% est., ARGOS LFL beat +4% v +1.9%.
*SGP: +1% positive read from TED BAKER.
*SHIRE: +1% files resubmission for FDA approval for SHP465, '20 rev $20B on track.
*T. WIMPEY: +2% good progress in '16 performance, total home completions +4%.
*TED BAKER: +2% retail rev growth +10.6% organic in 8-week period to 7 Jan.
*TULLOW OIL: -3% WEST AFRICA sales in line, prod guidance disappointing.

Investec
* CINEWORLD-Q4 good vs tough comps.CY film slate +ive.Strong recent run....unch
* DEVRO-Update.Overall profit to be in line with expectations..............unch
* EASYHOTEL-Signs new franchise agreement for 81 room site in Belfast......unch
* FOXTONS-Update.Rev i/l,EBITDA miss.Volumes below '16. Lettings flat....-7-10%
* INTERSERVE-Update. Trading I/L , FY on track. Net debt better.............+2%
* LIONTRUST-Q3T/U £190M net inflows.AUM £6b(+25% yoy),confident CEO stat't..+2%
* MCBRIDE-H1P/C Underlying rev inline(-7% cc).We expect H2 weighting to FY..-2%
* NATIONAL EXPRESS-sells c2c to Trenitalia (£70m), small net profit.......+1-2%
* PAGE GRP-FY P/C,FY PBT top end,EMEA strong,UK weak.2017 uncert's remain...+1%
* PARAGON-Said to be in final stage bid for £12.5b B&B mortgages (FT)......unch
* SAGA-Update. Stroing trading continues, remains on track to meet FY exp..unch
* SAINSBURYS-Q3.Sales +0.1%(est -0.8%) Mkt competitive & FX uncertainty.....+1%
* SHIRE-CEO:$20b rev by 2020.Major M&A not on the cards post Baxalta deal..unch
* STOCK SPIRIT-PreClose.Inline, Polish vodka market showing growth..........+2%
* TAYLOR WIMPEY-Q4.Strong trading.FY to be top end of range(+3% yday).......+2%
* TED BAKER-Performed well over Xmas,trading remains tough sees FY i/l.....unch
* TULLOW-Update.Broadly in line but lower production from TEN this year.....-2%
* VECTURA-Preclose.Trading in line, no chg to FY rev expectations..........unch
* XAAR-Signs inkjet print head partnership agreement with Xerox...........+1-2%

Euro
* BOUYGUES-share of Hinkley Point contract at least €1.7bn..................+2%
* FIAT-autos traded higher in US after GM buyback, Ford dividend............+1%
* CHR HANSEN-Q1 rev 1.5% ahead, ebitda 6% ahead, keeps FY f/casts...........+4%
* D TEL-Liberty Media’s Malone says consortium cld buy T-Mobile.............+1%
* KONE-wins order for 145 elevators at Bahrain airport....................+0.5%
* VW-close to $4.3bn US settlement, guilty plea on some claims..............+1%

Macquarie
* Cobham COB – profit warning, sees FY profit now £245m vs previous estimates £255-275m, no final dividend; -15%

* Foxtons FOXT- Profit Warning, a 40% fall in sales volumes in Q4. Expects trading conditions to remain challenging in 2017. -10%

* Liontrust LIO- Strong inflows taking AuM up 25% to £6bn since March.

* Saga – H2 Strong, on track to meet FY17 Expectations. +1%

* Taylor Wimpey TW/- Continues to see good demand, sees full year profits at upper end of consensus. (Stock up 6% past 2 sessions).+1%

* Ted Baker TED-Christmas Period Sales up 17.9% vs previous year. Gross margins inline with expectations. +2%

* Tullow OIL TLW-Production guidance for 2017 looks weak, TEN production below guidance. Aidan Heavey moving to Chairman role from CEO. -5%

MainFirst
*AIRBUS-Saudi's Flynas close to ordering 60 A320neo jets.........+0.5%
*ALSTOM-Wins dispute with GE over $800M train signal contract.....+0.5%
*SANOFI-Says it's confident of long term Diabetes prospects.......+0.5%
*VW-Confirms $4.3b settlement with US, will incl guilty plea.......+1%
*ROCHE-Really optimistic on 'Aphinity' breast cancer results......+0.5%
*BOUYGUES-To take part in building Hinckley Point worth €1.7b.....+1%
*AIXTRON-US peer Veeco(-3%)announced $200m cnv for acquisitions...-1%
*CROP ENERGIES-Rev 215m,Ebitda 87m,OP 18m,Guidance raised 20/12...-0.5%
*DTE-John Malone said new president lead to consolid. TMUS +3.6%...-0.25%
*SAINSBURY-Q3 comp Retail Ex-Fuel +0.1%(-0.8),Sales +4%(+1).......+2%
*CONTI-Considers further acquisitions to foster

CS
Airbus +0.5% Won an order for 35 A320-series jets
AstraZeneca -0.5% CS REITERATE UDERPERFORM
Bouygues +0.5-1% Hinkley Point Contract share at least EU 1.7bln
Chr Hansen +3-5% Q1 org growth 11% vs cons 7%
CNH Ind -0.5% US peer Deere says Dec combine sales fell
Cobham -10-15% Trading profit 245m vs cons 255-275m, passes dividend
Electrolux +1% Positive US International Trade Commission ruling
Evolva -1% CS DOWNGRADE to NEUTRAL (dilutive financing requirements)
Fiat +1% Positive read across from GM numbers
Foxtons -5-7% See's FY Adj EBITDA 25m vs bberg cons of 27.98m
Kone +0.5% Wins order for Bahrain Int Airport expansion
Merck +0.5% Positive FDA update
Miners -0.5% Copper +0.15%, Brent -1.25%, Iron Ore -0.35%, China -0.50%
Novartis -1% CS DOWNGRADE to NEUTRAL (Revenues & FX)
Oils -0.5-1% US API data showed a build of 1.5m barrels. Brent -1.25%
Page UNCH Q4 gross profit 4% ahead but cautious on 2017
Saga M/P Trading inline and on track to meet FY
Sainsbury +1-2% Sales ex fuel up 0.1% vs est -0.8%, Argos better
Stock Spirits M/P H2 inline and therefore FY inline
Taylor Wimp +2-3% Solid trading statement - Guiding towards the upper end
Thom Cook -1% CS DOWNGRADE to NEUTRAL (UK/German uncertainty)
Tui -1-2% CS DOUBLE DOWNGRADE to UNDERPERFORM (Cashflow)
UCB +1% CS UPGRADE to OUTPERFORM (Valuation)
Volkswagen +1% Confirms $4.3bn settlement with US on diesel issue

Julius Baer
ABBN +2.4%
NESN +0.8%
GAM -0.9%

Tradegate
BEI -1.5%
SIE -1.1%
CHR +1.3%
TUI -0.8%

>>> What to look at today - 11th of January 2017

Dow -0.16% S&P flat Nasdaq +0.36% Russell +0.99%
US MArket finished mixed again today. Consumer discretionary (+0.4%) finished in line with financials (+0.4%) and just ahead of health care (+0.3%) atop the leaderboard. However, strength in those sectors could not prevent the S&P 500 from reversing off its high in the afternoon. Materials (+0.1%), telecom services (+0.1%), and the top-weighted technology (-0.1%) sector finished the trading day flat. Energy (-1.0%) was the only other cyclical sector to finish in negative territory. The space couldn't overcome crude oil's 2.2% retreat as the commodity finished its trading day at $50.82/bbl. Real estate was the only sector to finish below the energy sector, with a loss of 1.2%. Consumer staples (-0.6%) finished slightly better, while the utilities sector (-0.3%) ended closer to its flat line. Volume were above average with 1.17bil shares. US After Hours ICHR +11% and UAL +2% higher following guidance...NVDQ -16.3% lower following guidance. Asia equity markets trading mixed, with Hang Seng and Shanghai Composite diverging as a leader and a laggard respectively. Despite the rally in miners on rising metals prices, Australia's ASX200 was flat. USD majors also holding narrow ranges in the absence of key economic data and flat US yields. USD/JPY was most volatile in a 60pip range but remaining well contained within the month-long 115-118.60 band as traders await transfer of power in the US and greater visibility for initial policies under the new govt. DoubleLine's Gundlach forecast 2-3 rate hikes this year and noted that 3% breach on the 10-year yield would be critical; Earlier, Janus's Gross noted 2.6% as the key threshold that will herald a protracted bear bond market. China press citing local economists warning about rising prospects of a trade war under US President Trump, noting his "harsh" stance on China trade and his selection of trade officials. Disruption of Apple supply chain or cancellation of Boeing orders were mentioned as some of the initial steps China could take in retaliation to US tariffs.

Nikkei +0.33% Hang Seng +0.88% CSI -0.41% Shanghai -0.41%

Eur$ 1.0559 CNH 6.8927 CNY 6.9233 JPY 116 GBP 1.2159 CHF 1.0164 RUB$ 60.2497 WTI$ 50.98 +0.31%

S&P -0.08% EuroStoxx -0.06% FTSE -0.13% Dax -0.09% SMI +0.16%

Macro :
- U.K. Considers Promising EU Citizens They Can Stay After Brexit
- Gundlach Says Treasuries Above 3% Would End Bond Bull Market
- Trump Said to Be Told of Unverified Russian Intelligence

Keep an eye on :
- ABI BB : AB InBev Investor Bevco Buys EU60m of Brewer’s Stock
- AIR FP : Airbus Wins $3.8b U.S. Deal, Said to Near Saudi Sale
- AIR FP : Boeing Gets Order for 3 737-800s From Jeju; Order Value $300m
- AREVA FP : 17 U.S. Nuclear Reactors at 13 Sites Contain Areva Parts: NRC
- EN FP : Bouygues Gets Hinckley Point C Contract Share at Least EU1.7b
- CGD FP : Cegid Group Expects More Than 4% Sales Growth in 2017
- CON GY : Continental AG Considers Further Acquisitions to Foster Growth
- DTE GY : Liberty Media’s Malone Says Cable Consortium Could Buy T-Mobile
- EDF FP : EDF May Delay Fessenheim Decision Until June, Le Canard Says
- FCA IM : Jeep CEO Sees ‘Potential’ to Boost 2017 China Sales to 250,000
- GSK LN : Glaxo Expects Shingrix, Benlysta, Sirukumab Approvals in 2017
- MC FP : LVMH Boosts Stake in Russian Perfume-Stores Chain to 100%: RBC
- UG FP : PSA 2016 Unit Sales Rose 5.8%, Lifted by Africa, Middle East
- UG FP : PSA Hiring 400 Temporary Workers at Rennes, Les Echos Says
- PFE US : Pfizer Won’t Wait for Tax Reform Before Making Any Deals
- REP SM : Repsol Says More Than 79% of Shareholders Accept Scrip Dividend
- ROG VX : Roche ‘Really Optimistic’ on ‘Aphinity’ Breast-Cancer Results
- SAN FP : Sanofi Accused in Suit of Trying to Corner U.S. Insulin Sales
- SAN FP : Sanofi to ‘Vigorously’ Defend Itself in Cholesterol Drug Case
- SAN FP / REGN US : Regeneron Rises; 2017 Expense Guidance Tops Estimates
- SHP LN : Shire CEO Says Major M&A ‘Not on the Cards’ After Baxalta Deal, On Track to deliver $20b in Rev. by 2020
- SIE GY : Siemens Double-Downgraded at Goldman, Outotec Up to Neutral
- UCG IM : UniCredit Says Board Chairman Vita Asked to Cut His Remuneration
- VOW3 GY : Volkswagen Confirms $4.3b Settlement With U.S. on Diesel Issue
- VOW3 GY : Winterkorn, Diess Accused by Witnesses in VW Probe: SZ

>>> Europe : Brokers Upgrades & Downgrades - 11th of January 201

>>> Up
*ABB Raised to Buy at BofAML
*Alfa Laval Raised to Neutral at BofAML
*ASOS Raised to Equal-Weight at Morgan Stanley, PT 5170p
*BT Raised to Overweight at Morgan Stanley, PT 490p
*Burberry Raised to Overweight at Barclays
*Capita Raised to Hold at HSBC, PT GBP5
*DONG Energy Raised to Market Perform at Bernstein, PT DKK270
*Eni Raised to Neutral at Exane, PT EU15
*KAZ Minerals Raised to Add at Peel Hunt
*L'Oreal Raised to Buy at UBS
*MTU Aero Raised to Market Perform at Bernstein, PT EU111
*Nestle Raised to Buy at UBS
*Outotec Raised to Neutral at Goldman
*ProSieben Raised to Overweight at Morgan Stanley
*ProSieben Raised to Buy at Berenberg
*Repsol Raised to Outperform at Exane, PT EU16
*RWE Raised to Equal-Weight at Barclays
*Spectris Raised to Buy at BofAML
*Spirax Raised to Buy at BofAML
*UCB Raised to Outperform at Credit Suisse, PT EU78
*Wolters Kluwer Raised to Hold at Berenberg

>>> Down
*Assa Abloy Cut to Neutral at BofAML
*Atlas Copco Cut to Underperform at BofAML
*DNB Cut to Hold at HSBC, PT NOK133
*EasyJet Cut to Underweight at JPMorgan, PT 950p
*Endeavour Mining Cut to Add at Peel Hunt
*Evotec Cut to Hold at DZ Bank, PT EU8
*Evolva Holding Cut to Neutral at Credit Suisse, PT CHF0.57
*FDR FP Cut to Hold at Tradition Securities & Futures
*GAM Holding Cut to Underperform at Main First Bank AG
*GAM Holding Cut to Underperform at RBC, PT CHF11.50
*Hugo Boss Cut to Hold at HSBC, PT EU61
*KPN Cut to Underperform at Jefferies, PT EU2.32
*Legrand Cut to Neutral at BofAML
*Metso Cut to Underperform at BofAML
*Novartis Cut to Neutral at Credit Suisse, PT CHF77
*Schneider Cut to Neutral at BofAML
*SEB Cut to Neutral at Main First Bank AG, PT EU135
*Segro Cut to Underweight at JPMorgan, PT 500p
*Siemens Cut to Sell at Goldman
*Television Francaise 1 Cut to Underweight at Morgan Stanley
*Thomas Cook Cut to Neutral at Credit Suisse, PT 88p
*TUI Cut to Underperform at Credit Suisse, PT 1040p
*UBM Cut to Sell at Berenberg

>>> PT Change
*Telecom Italia PT Raised to €1.05 from €0.95, Reiterate Buy at Kepler

>>> Initiation
*EMS-Chemie Rated New Underperform at Main First Bank AG
*SAP Rated New Outperform at Wells Fargo
*Volvo Rated New Underweight at Barclays, PT SEK94

>>> Call