>>> PNL - NA : Rejects revised €5.75/shr final proposal from Bpost (update) - Bo

Rejects revised €5.75/shr final proposal from Bpost (update) 
- Boards unanimously reject Bpost's final proposal; believe that combination will not be successful
- Boards consider it likely that acquisition by Bpost will trigger regulatory changes
- Acquisition by Bpost could have significant negative impact on PostNL's resilience, its employees, its position as USO provider, its stakeholder support and its continuity, which is not acceptable to boards
- PostNL intends announcing measures to improve value proposition for its shareholders at a capital markets day around presentation of Q4 results

(CS) SFR _ Trimming target price

SFR (N, TP EUR25.0): We lower our 2017 EBITDA estimate by 1% and are broadly in line with consensus. We also lower our target price slightly to €25 to reflect our revised estimates and the sector's recent de-rating. We retain our N rating on the stock. French mobile trends improved recently with mobile service revenue growth improving from -7.0% y/y in Q2 16 to -3.5% y/y in Q3 16. This was mostly driven by easier comps and with the benefit of some of the front-book price hikes in Q2 16. The low end of the market remains competitive but not very different from the sort of promotions that we saw a year ago. The high end of the market remains fairly benign with Orange making a 'more-formore' price move in August 2016.

>>> Street Pre-Market Indications

CS
Airbus +0.5% Said to Win Canada Search Plane Contract
Aurubis -1% CS DOWNGRADE to NEUTRAL (Copper market)
BHP Billiton UNCH CS DOWNGRADE to UNDERPERFORM (Valuation)
Carillion +1-2% fy TRADING FINE, support services BETTER
Daimler +1% Won dismissal of a lawsuit
Electrolux -0.5% Iron ore up abnother +2% overnight
Ferrexpo -1% CS DOWNGRADE to UNDERPERFORM (Valuation)
GVC +1-2% Will Hill Said to approach Alexander for CEO role
HSBC +1-2% +1.5% in Hong Kong, y/day HSBC repurchased 6.45m shares
Kaz -1% CS DOWNGRADE to NEUTRAL (Copper market)
Miners +1% Copper +0.85%, Brent -0.25%, Iron Ore +2.15%, China +0.23%
Rio +3% CS UPGRADE to OUTPERFORM (Valuation)
Solvay +2% Agreement to sell its cellulose acetate tow business
Stagecoach -1% Headline inline but outlook slightly negative
Steinhoff +3% Sales momentum is expected to continue
Will Hill -1% Said to approach GVC's Alexander for CEO role

ML
* Day 2 ML CHEMS Conference; Evonik, Arkema, BASF, Umicore, K&S, Yara..........
UNICREDIT - May keep 10% in Pioneer if Amundi offer succeeds; Mf (2.3)......+3%
CS - Investor Day.+ve on costs, targeting below CHF17b from below 18b (14.8)+3%
STEINHOFF - Strong. Sales +12.1% & EBIT grew 21% & margin +80bps y/y (4.5)..+3%
ITALIAN BANKS - Italy to ask for EU15B ESM loan for paschi, others........+2-3%
LEONARDO - We UPGRADE to Buy, PO €15.5. Discount to peers unwarranted (13.4)+2%
MINERS - Copper -0.3%, Iron Ore +2.5% with BHP OZ +0.98%, RIO OZ +2.86%.....+2%
GKN - We UPGRADE to Buy,PO 365p.One of the strongest earnings profiles (310)+2%
AHOLD - CMD. Guiding for €1.0b shr buyback and €1.6b FCF in 2017 (€19)......+2%
ZODIAC - We UPGRADE to Buy, PO €25 (20% upside) on recovery potential (21.2)+2%
THYSSEN - Tata may find deal with unions on £15b steel pension scheme (22.5)+2%
CARILLION - Expected to meet exp with strong perf in support services(260)+1-2%
SOLVAY - To sell its cellulose acetate tow biz. Based on EV c.€1b (109.3)...+1%
SAGE - Spec looking to sell its US processing biz for >$500m; bbg (626p)....+1%
DT - Sprint & TMob up after Trump said Softbank to invest $50b into US(15.2)+1%
SIEMENS - Digital CMD. Software business to support group growth (110.3)....+1%
WILLIAM HILL - Said to approach GVC's Alexander for CEO Role; FT (301.4)....u/c
INFORMA - Refin. To issue $500M of New US Private Placement Notes (650.5)...u/c
PUBLICIS - ANA investigating if agencies manipulate bidding process (61)..-1-2%
STAGECOACH - EPS 14.4 v 14.1 but cautious commentary on the UK -ve (202)..-1-2%
WPP - ANA investigating if agencies manipulate bidding process (1675).....-1-2%
QINETIQ - We DOWNGRADE to Neutral. Weaker growth outlook v peers (242p).....-2%


MainFirst Pre Mkt Indications

*CS-Increases cost cutting,Swiss IPO on track,CET1 Ratio 3.5%......+2.5%
*AIRBUS-Said to win Canada search plane contract worth $2.6bln.....+1%
*LONZA-To divest Peptides Bizz and Operations in Belgium...........-0.7%
*UNICREDIT-May keep 10% in Pioneer if Amundi offer succeeds........+1%
*ROCHE-Avastin gets expanded FDA Approval in Ovarin Cancer.........+1%
*RENAULT-Planning to expand low-cost exlectric-car models-Echos....+1%
*CASINO-Files offer to buy Cnova for Euro equivalent of $5.50......+1%
*DTE-Softbank to invest $50b in US(Srint/T-Mobile)-Denied..........+1%
*CBK-Sues for Dividend-stripping Tax refund,worth approx €75m......+1%
*BPOST-PostNl rejects new BPOST bid,combo will not be a success....-1%
*AHOLD-To start €1b share buyback prog



Macq UK Mid/Small Cap Indications:

* AMEC Foster AMFW- Appointed to support Heathrow expansion team. Unch

* Arrow Global ARW-Tom Drury stepping down as CEO, replaced by Lee Rochford ex Virgin Money CFO. -1%

* Carillion CLLN- sees FY numbers meeting expectations, contract opportunity pipeline ‘broadly’ unchanged, sees FY net borrowing down from H1, preferred bidder for contract worth £120m; +5-6% on short squeeze (most shorted stock in Stoxx 600)

* GVC Holdings- Spec that William Hill have approached Kenny Alexander for CEO role, also spoke about a takeover (FT). +3%

* Numis NUM- Rev’s grew 15% to £112m, Profits up 25% to £32.5m. Trading in new financial year solid, confident outlook. +5%

* Sage SGE- Trying to sell US payments business, early stages. +2%

(CS) Altice : EBITDA 2017-18 raised by 1-1.5%

ALTICE (N, TP EUR18.0): We raise 2017-18 EBITDA by 1.0-1.5% on a constant currency basis and raise our target to €18, mostly reflecting a better recent performance in the newly acquired US assets. Our estimates are above headline consensus (2018 EBITDA 3% above current Reuters consensus), but few consensus estimates are currently reflecting the Q3 16 beat in the US and the strong US$, so we suspect we are broadly in line with current market expectations on a like-for-like basis.

(EXane) Sanofi / Actelion : Could Sanofi add PAH to the rare disease portfolio?

Could Sanofi add PAH to the rare disease portfolio?

Bloomberg reports that Sanofi is considering a bid for Actelion
On 25 November, both Actelion and JNJ issued press releases confirming they were in early
discussions with one another regarding a potential transaction. Bloomberg has reported a JNJ bid
of at least CHF 250/share. Since then Actelion stock has rallied ca 30%. This morning, Bloomberg
reports that Sanofi may also be interested in entering the fray for Actelion.

An Actelion acquisition makes sense for Sanofi, but price is likely to be high
Following the failure of the Medivation acquisition in August, Sanofi remains on the lookout for an
acquisition to add near-term sales and profits or to boost pipeline. In the context of a lacklustre
EPS growth profile (+3-4% 2016-21), an acquisition could accelerate earnings growth and possibly
expedite the inflection point for EPS growth and upgrades. We see Actelion as a good candidate to
fill Sanofi’s earning gap, with profits from recently launched Opsumit and Uptravi (PAH) and costsynergies
allowing strong and immediate earnings accretion. However, JNJ’s involvement and
Actelion’s reticence to give up its independence are likely to make such a deal expensive.

Our M&A flexor indicates EPS accretion would be significant, but ROIC less compelling
In this note, we provide a combined P&L, showing our EPS accretion and ROIC calculations. We
use a CHF260/share acquisition price (ca EUR26bn total value), assume EUR500m synergies by
year 3 (10% COGS, 60% R&D, 30% SG&A), 1% cost of debt and no tax benefits. With a 100%
debt funded acquisition, we see earnings accretion of 12% in the first full year (2018) rising to 19%
by 2021. However, we do not see ROIC above WACC before 2022e.

>>> What to look at today - 7th of December 2016

Dow+0.18% S&P +0.34% Nasdaq +0.45% Russell +1.11%
US Mkt closed slightly higher but in a very quiet day. Volume were below average with 860mil shares. Sentiment was btter in Europe with MIB index surged 4.2% while demand for Italian debt sent Italy's 10-yr yield lower by four basis points to 1.95%. Only one other sector—telecom services (+1.5%)—ended the day ahead of the broader market, underscoring today's range-bound action. However, small cap stocks saw more movement with the Russell 2000 rising 1.1% as participants showed increased demand for domestically-oriented names. It is worth noting that the energy sector (-0.1%) displayed resilience. The sector erased a 1.0% loss even though crude oil slumped, ending the day lower by 1.5% at $50.95/bbl. US After Hours PLAY +12.5%, WDC +6% following earnings/guidance, WDC SSD also higher... SIGM -13%, AVAV -11% following earnings/guidance, several names lower following offering news. According to analysts with Standard Chartered, PBOC could raise interest rate offered in reverse repurchase operations to contain yuan depreciation pressures. Goldman Sachs sees China 2017 GDP growth at 6.5%; Sees 2016 GDP at 6.7%. BoJ Deputy Gov Iwata: To continue expanding monetary base; Inappropriate to think BOJ not focused on quantity of easing; Will not hesitate to take additional easing steps if needed; Firms are more cautious about raising prices than last year.

Nikkei +0.74% Hang Seng +0.44% CSI +0.35% Shanghai +0.58%

Eur$ 1.0719 CNH 6.9025 CNY 6.8895 JPY 114.29 GBP 1.2654 CHF 1.0097 RUB 63.8652 WTI$ 50.73 -0.43%

S&P +0.03% EuroStoxx +0.55% FTSE +0.56% Dax +0.65% SMI +0.53%

Macro :
- BOJ, ECB to Study Use of Distributed Ledger Technology
- Softbank of Japan Agrees to Invest $50b in the U.S., Trump Says
- Villeroy Sees ‘Significant Progress’ on Basel Talks in Chile
- Italy to Ask for EU15b ESM Loan for Paschi, Other Banks: Stampa

Keep an eye on :
- AIR FP : Airbus Said to Win Canada Search Plane Contract: National Post
- AIR FP : Boeing to Buy Liquid Robotics; No Terms
- BAYN GY : Almirall Drops Out of Race for Bayer Dermatology: Confidencial
- BKIA SM : Spain’s CNMV Regulator Levies Fines on Bankia, BBVA: Expansion
- ACA FP : EU Said to Plan Euribor Fines Wed. for HSBC, JPM, Cred. Ag.: FT
- CSGN VX : Credit Suisse Targets 2018 Operating Cost Base Below CHF17B
- DBK GY : Deutsche Bank Names Dohm Head of Regulatory Dept: Sueddeutsche Z
- EI FP : Essilor to Name Laurent Vacherot as Chief Operating Officer
- NOVN VX : Novartis Says Lucentis Gets EU Approval in New Indication
- RNO FP : Renault Planning to Expand Low-Cost Electric-Car Models: Echos
- ROG VX : Roche’s Avastin Gets Expanded FDA Approval in Ovarian Cancer
- SGE LN : Sage Group Said to Seek Buyers for its U.S. Payments Division
- SOLB BB : Solvay Sells Acetow to Funds Managed by Blackstone
- FP FP : Iran to Sign Oil Fields Deals W/ Shell, Total: Ministry Official
- TIT IM : Oi Surges in Brazil After Telecom Reform Bill Approved (1)
- UCG IM : UniCredit May Keep 10% in Pioneer If Amundi Offer Succeeds: Mf
- VATT SS : Vattenfall Acquires Vindstød.dk to Expand in Denmark
- VOW3 GY : Audi VW Korea Fined 37.3b Won by S.Korea Fair Trade Commission
- WPP LN : WPP Spending ~$70m With Snapchat on Behalf of Clients: WSJ

>>> Europe : Brokers Upgrades & Downgrades - 7th of December 2016

>>> Up
*Aviva Raised to Outperform at RBC, PT 500p
*Bayer Raised to Buy at UBS, PT EU110
*Delta Lloyd Raised to Sector Perform at RBC, PT EU5.80
*Deutsche Post Raised to Outperform at RBC, PT EU33
*Galenica Raised to Buy at UBS, PT CHF1300
*ProSieben Raised to Buy at Bankhaus Lampe, PT EU42
*Rio Tinto Raised to Outperform at Credit Suisse
*Swiss Re Raised to Outperform at RBC, PT CHF110
*Zurich Ins. Raised to Sector Perform at RBC, PT CHF260

>>> Down
*Aldermore Group Cut to Neutral at Macquarie
*Aurubis Cut to Neutral at Credit Suisse
*Boliden Cut to Hold at Deutsche Bank
*BHP Cut to Neutral at Credit Suisse
*Elekta Cut to Underperform at Jefferies, PT SEK57
*Ferrexpo Cut to Underperform at Credit Suisse
*Hiscox Cut to Sector Perform at RBC, PT 1150p
*IG Group Cut to Neutral at Citi, PT 470p
*KAZ Minerals Cut to Neutral at Credit Suisse
*KAZ Minerals Cut to Sell at Deutsche Bank, PT 240p
*NN Cut to Sector Perform at RBC, PT EU30
*PayPoint Cut to Underweight at Barclays, PT 950p
*Remy Cointreau Cut to Sell at Liberum
*Scor Cut to Underperform at RBC, PT EU27.50
*SIG Cut to Underweight at JPMorgan, PT 96p
*Storebrand Cut to Underperform at RBC, PT NOK40
*Tecnicas Reunidas Cut to Hold at Kepler Cheuvreux, PT EU36.60

>>> PT Change


>>> Initiation
*Biffa Rated New Buy at Citi, PT 200p
*Glencore Resumed Hold at Deutsche Bank, PT 300p
*Merlin Reinstated Neutral at Goldman, PT EU11.60
*Nets Rated New Underweight at Barclays, PT DKK104
*Telefonica Resumed Hold at HSBC, PT EU9.10

>>> Call
>> Stock
*BRITISH AMERICAN TOBACCO ADDED TO CITI FOCUS LIST EUROPE

>>> Asian Update

Asia Mid-Session Market Update: Deeper then expected Australia Q3 contraction renews speculation over need of more stimulus

***US Session Highlights***
- (US) OCT TRADE BALANCE: -$42.6B V -$42.0BE
- (US) Q3 FINAL NONFARM PRODUCTIVITY: 3.1% V 3.3%E; LABOR COSTS: 0.7% V 0.3%E
- (US) OCT FACTORY ORDERS: 2.7% V 2.6%E (sharpest one-month gain since June 2015)
- (US) OCT FINAL DURABLE GOODS ORDERS: 4.6% V 3.4%E; DURABLES EX TRANSPORTATION: 0.8% V 0.5%E

***US markets on close: Dow +0.2%, S&P500 +0.3%, Nasdaq +0.5%***
- Best Sector in S&P500: Financials
- Worst Sector in S&P500: Utilities
- Biggest gainers: ADSK +7.2%, NFLX +4.5%, BWA +4.5%, KMX +4.2%, UAL +4.0%
- Biggest losers: CMG -7.6%, IPG -3.0%, NKE -2.5%, ISRG -2.4%, HUM -2.2%
- At the close: VIX 11.8 (-0.4pts); Treasuries: 2-yr 1.12% (flat), 10-yr 2.40% (+1bps), 30-yr 3.08% (+2bps)

***US movers afterhours***
- ANTH: Reports Blisibimod BRIGHT-SC IgA Nephropathy continues to demonstrate positive trends in the week 48 analysis; +15.7% afterhours
- PLAY: Reports Q3 $0.25 v $0.13e, R$228.7M v $217Me; +12.5% afterhours
- WDC: Raises Q2 $2.10-2.15 v $1.78e, R$4.75B v $4.71Be, Non-GAAP gross margin 36% (prior $1.85-1.95, R$4.71B, gross margin 35%) - investor day; +4.8% afterhours
- POWL: Reports Q4 $0.54 v $0.03e, R$129.8M v $120Me (only 1 est.); +1.8% afterhours
- HQY: Reports Q3 $0.10 v $0.12e, R$43.4M v $43.3Me; -4.4% afterhours
- AVAV: Reports Q2 -$0.18 v $0.00e, R$50.1M v $52.4Me; -9.9% afterhours

***Politics***
- (FR) According to BVA poll, nationalist Le Pen would get 24-26% of votes in 1st round of Presidential election voting v Conservative Fillon 23-29%; In expected head-to-head race, Fillon would beat Le Pen with 67% of votes to her 33% - press
- (US) President-elect Trump formally appoints retired Marine general James 'Mad-Dog' Mattis for Secretary of Defense

***Asia Session Notable Observations, Speakers and Press***
- Volatility compressed across asset classes with exception of Aussie dollar, bonds, and indices. Much weaker than expected contraction in Q3 GDP of -0.5% (first contraction in 5 years) V -0.1%E and Y/Y: 1.8% V 2.2%E (lowest annual pace since 2008) has given a snapshot of a more troubling transition away from mining to other sectors down under. Among key components, Capital Formation contracted for the 12th straight quarter at -2.7%, while consumption (over 50% of economy) saw much weaker growth of +0.3% v +0.8% prior. The disappointing growth figure is especially precarious given that the govt is reluctant to implement more aggressive fiscal stimulus as it seeks to preserve its AAA rating going into Dec-Jan release of MYEFO budget, while the RBA has been rather neutral and could still write off the Q3 print as a one-off anomaly. AUD/USD fell about 50pips on the release below 0.7420, 3-year and 10-year bond yields were down 3bps and 5bps respectively, while S&P/ASX200 outperformed regional indices on differing expectations of monetary or fiscal response.
- Economists ranged in their expectations of policy response: AMP notes pressure is on RBA to ease as fiscal measures likely to be limited, UBS and Barclays see RBA looking forward to improved 2017, while Citigroup notes that because the decline is much deeper than expected, the case for fiscal stimulus is more pronounced

China:
- (CN) According to analysts with Standard Chartered, PBOC could raise interest rate offered in reverse repurchase operations to contain yuan depreciation pressures
- (CN) Goldman Sachs sees China 2017 GDP growth at 6.5%; Sees 2016 GDP at 6.7% - China Daily
- (CN) China state researcher Wang Yiming expects 2017 growth to be stable - Chinese press
- (CN) Fitch: Not expecting a hard landing in China

Japan:
- (JP) BoJ Deputy Gov Iwata: To continue expanding monetary base; Inappropriate to think BOJ not focused on quantity of easing; Will not hesitate to take additional easing steps if needed; Firms are more cautious about raising prices than last year.

***Asia Key economic data:***
- (AU) AUSTRALIA Q3 GDP Q/Q: -0.5% (first contraction in 5 years) V -0.1%E; Y/Y: 1.8% V 2.2%E (lowest annual pace since 2008)
- (AU) AUSTRALIA NOV AIG PERFORMANCE OF CONSTRUCTION INDEX: 46.6 V 45.9 PRIOR (2nd straight month of contraction)

***Asian Equity Indices/Futures (00:00ET)***
- Nikkei +0.6%, Hang Seng +0.3%, Shanghai Composite +0.2%, ASX200 +0.9%, Kospi flat
- Equity Futures: S&P e-mini flat, Dax -0.1%, FTSE100 flat

***FX ranges/Commodities/Fixed Income (00:00ET):***
- EUR 1.0710-1.0725; JPY 113.95-114.30; AUD 0.7475-0.7415; NZD 0.7100-0.7125
- Feb Gold -0.1% at 1,169/oz; Jan Crude Oil -0.7% at $50.59/brl; Mar Copper -0.2% at $2.66/lb
- (US) Weekly API Oil Inventories: Crude: -2.2M v -0.7M prior; 3rd consecutive draw
- (JP) BOJ offers to buy ¥400B in 1-3 yr JGBs; ¥420B in 3-5yr JGBs; ¥410B in 5-10 yr JGBs
- (AU) Australia Finance Ministry (AOFM) sells A$900M in 1.75% 2020 bonds; avg yield 2.095%; bid-to-cover 4.29x
- (KR) South Korea sells KRW1.7T in 2-year monetary stabilization bonds (MSB); avg yield 1.72% v 1.61% prior
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.8808 V 6.8575 PRIOR; biggest margin of weakness since Nov 11th

***Asia equities / Notables / movers by sector***
- Consumer discretionary: Huayi Brothers Media Corp 300027.CN +2.3% (terminate asset restructuring plan)
- Financials: CITIC Securities 6030.HK +0.4% (Nov result)
- Industrials: Great Wall Motor 2333.HK +3.6% (Nov result); Guangzhou Automobile Group 2238.HK -1.8% (Nov result); Hanjin Shipping Co 117930.KR -4.2% (SM Group to withdraw bid); GrainCorp GNC.AU +2.2% (Macquarie raised to outperform);
- Technology: HTC Corp 2498.TW -2.9% (Nov result)
- Materials: Sandfire Resources SFR.AU -0.8% (JPMorgan cuts to neutral)
- Energy: China Longyuan Power Group 916.HK +2.5% (Nov result); Idemitsu Kosan 5019.JP +1.7%, Showa Shell 5002.JP +0.9% (tie-up speculation); Origin Energy ORG.AU -2.7% (Citi cuts to neutral)
- Telecom: TPG Telecom TPM.AU +7.4% (affirms guidance); Softbank 9984.JP +.7% (Trump/Masa announcement US investment); Coolpad Group 2369.HK -13.8% (transfer to brick and mortar sales format)