WSJ : Boris Johnson Says He Isn’t Seeking to Replace British Prime Minister Davi

Boris Johnson Says He Isn’t Seeking to Replace British Prime Minister David Cameron

Theresa May and Michael Gove vie for leadership of Conservative Party

LONDON—The race for the leadership of the Conservative Party, and therefore the role of prime minister, took a sharp and unexpected turn Thursday, as former London Mayor Boris Johnson said he wouldn’t run.

The move came after Justice Secretary Michael Gove—who with Mr. Johnson led the successful campaign for Britain to exit the European Union— made a surprise bid for the top job himself. Home Secretary Theresa May, who had backed staying in the bloc, also announced her candidacy.

Mr. Gove had been due to help shepherd Mr. Johnson’s leadership bid, but said that events since last Thursday’s referendum “have weighed heavily with me” and he had lost confidence in Mr. Johnson.

“I have come, reluctantly, to the conclusion that Boris cannot provide the leadership or build the team for the task ahead,” Mr. Gove said.

The referendum results plunged the country into uncertainty, prompting Prime Minister David Cameron to resign and opening up a political vacuum. The unexpected turn a week later represents another fracture in a Conservative Party that was already deeply divided over the referendum campaign, marking a break between two leaders on the Leave side.


The charismatic Mr. Johnson had been seen as having a strong claim to the job, and Mr. Gove had said previously that he didn't want to be prime minister. Before his announcement, Mr. Johnson had been largely quiet in the week since the vote.

Mr. Johnson had been expected to announce his bid to lead the Conservatives, but said Thursday that “having consulted colleagues and in view of the circumstances of Parliament I have concluded that person cannot be me.”

The deepening divide raises further questions about who will lead Britain at a time when it has reshaped its future by voting to leave the EU.

Mr. Cameron’s successor will have to steer Britain through negotiations to end it 43-year-old membership in the bloc and bring together a country split by the vote and a large cultural divide. They also will need to navigate a slowing U.K. economy.

Ms. May, seen as a key rival to Mr. Johnson, promised to heal the nation’s divisions, saying she could provide the strong leadership the country needed as it determines its future relationship with the EU.

“Nobody should fool themselves that this process will be brief or straightforward,” said Ms. May. “It is going to require significant expertise and a consistent approach.”

A survey by polling firm YouGov PLC conducted Sunday and Monday suggested Ms. May was slightly more popular among the general public than Mr. Johnson. However, some Conservative lawmakers have said that her support of Mr. Cameron’s position of remaining in the EU would make it hard for her to be the prime minister to negotiate Britain’s exit.

In the party leadership contest, Conservative lawmakers will hold a series of ballots until the list is whittled down to two candidates. The contest is then opened up to the party’s membership of some 150,000 people. Only those who have been members for at least three months can vote.

The Conservative Party says it intends to announce the new prime minister on Sept. 9.

The political fallout from the EU referendum is also roiling the main opposition Labour Party. Labour leader Jeremy Corbyn lost a symbolic vote of confidence among the party’s lawmakers on Tuesday by 172 votes to 40, ramping up pressure on him to resign.

>>> RTE-La cession pourrait valoriser le groupe plus de €5,2 mds–sces - Reuters

RTE-La cession pourrait valoriser le groupe plus de €5,2 mds–sces - Reuters News

30-JUN-2016 13:52:35
PARIS, 30 juin (Reuters) - Le projet de cession par EDF EDF.PA de 49% du capital de RTE pourrait valoriser le gestionnaire du réseau français de transport d'électricité à plus de 5,2 milliards d'euros, a-t-on déclaré à Reuters de sources proches du dossier.

L'ouverture du capital de RTE s'inscrit dans un programme de cessions d'environ dix milliards d'euros d'actifs à l'horizon 2020 prévu par l'électricien français, lourdement endetté.

Les nouveaux investisseurs prendront indirectement une part dans le groupe à travers une société holding qui pourrait être contrôlée par la Caisse des dépôts (CDC), a déclaré à des syndicats d'EDF Aymeric Ducrocq, directeur de participations en charge du secteur Industrie à l'Agence des participations de l'Etat (APE), selon un document obtenu par Reuters.

La législation français impose actuellement que la totalité du capital de RTE soit détenue par EDF, l'Etat ou d'autres entreprises ou organismes appartenant au secteur public.

Selon ce même document, la valeur retenue pour la transaction sera probablement supérieure à la valeur comptable de RTE (5,2 milliards d'euros).

Une source proche du dossier estime ainsi que l'opération pourrait valoriser RTE à environ six milliards d'euros.

Le ratio de distribution des dividendes de RTE pourrait être relevé de 60% actuellement à 80% pour attirer les investisseurs potentiels, selon ce même document.

EDF a retenu comme banques-conseil Messier Maris et Associés et Goldman Sachs pour cette opération, ont déclaré à Reuters deux sources, confirmant des informations publiées début juin par le quotidien Le Figaro.

(SkyNews) Bidders Go Compare Numbers On Esure Takeover

Bidders Go Compare Numbers On Esure Takeover

Esure has drawn interest from financial and trade buyers since saying it was exploring a demerger of Go Compare, Sky News learns.

Esure, the motor insurer which owns the price comparison site Go Compare, is being circled by private equity firms and overseas insurance groups amid signs that its founder may be willing to sell his 30% shareholding.

Sky News has learnt that buyout groups thought to include KKR, the New York-based investment giant, have been exploring takeover bids for esure in recent weeks.

The emergence of this interest followed the company's announcement that it would examine options for its price comparison business, including a demerger.

It was unclear on Thursday whether any formal approaches have been made to esure's board since its June 7 statement, or whether KKR's interest continued to be active.

Insiders said that Deutsche Bank, which is advising esure on the possible demerger of Go Compare, has also been asked to field takeover interest in the entire company.

At least one possible overseas insurance company is understood to have hired financial advisers to work on a takeover bid.

Like its rival Comparethemarket, Go Compare spends heavily on advertising, with its ubiquitous opera-singing character underlining the land-grab for market share in a fast-growing industry.

Esure went public in 2013, with its shares priced at 290p, and paid £95m to acquire 50% of Go Compare in 2015.

On Thursday, they were trading at just over 260p, giving the company a market value of £1.04bn.

Peter Wood, esure's founder and one of the insurance industry's most successful entrepreneurs, is said by friends to be willing to consider offers for the whole company.

Mr Wood, who also founded Direct Line, owns just under 31% of esure, a stake worth roughly £300m

One source close to the company said it was likely that Mr Wood would want any bidder to pay more than 500p-a-share in order to persuade him to sell.

News of the possible interest in a takeover of esure comes at a significant time for Go Compare and the rest of the online price comparison sector, which has been facing new regulatory remedies proposed by the City and competition watchdogs.

In its statement just over three weeks ago, esure said that since taking full control of Go Compare last year, it had made significant progress, with "growth in insurance comparison, the cost base restructured, and focus given to a wider range of products".

"These actions have underpinned the board's confidence in its guidance for a 20%-30% improvement in Gocompare.com's profitability in 2016," it added.

Mr Wood said: "Now is the right time to review strategic opportunities for the Gocompare.com business, including a potential demerger, in order to continue to maximise value for our shareholders."

The wider esure Group has also improved its profitability, announcing that last year's pre-tax profit rose by nearly one-third to £134m

Esure and KKR declined to comment on Thursday.

Reuters - Safran board to meet to narrow bids for Morpho business

Safran board to meet to narrow bids for Morpho business

The board of French aerospace group Safran will meet on Thursday to make a preliminary selection from a dozen offers for its Morpho biometrics and security business, sources told Reuters on Wednesday.

Safran, which is focusing on its aerospace business and offloading others, declined to comment, although Chief Executive Philippe Petitcolin said last week that it planned to narrow down the bids for Morpho and then carry out a second round of an auction in the autumn.

The company agreed in April to sell its U.S.-based Morpho Detection business and related activities to UK engineering firm Smiths Group for an enterprise value of $710 million.

French SIM card maker Gemalto has expressed interest in the additional assets being sold by Safran, while private equity fund Advent wants to acquire Safran's biometric identification business and merge it with security badge maker Oberthur Technologies, which it bought in 2011.

French IT services company Atos, and private equity firms KKR, Carlyle, Bain Capital and CVC Capital Partners are also seen as potential candidates for the business, which had 1.6 billion euros of revenue last year.

The French government, which owns 15.4 percent of Safran, is closely watching the auction, one source said.

>>> Sky's controlling shareholder 21st Century Fox said to be mulling takeover b

Sky's controlling shareholder 21st Century Fox said to be mulling takeover bid 

Sky plc’s [LON:SKY] controlling shareholder 21st Century Fox [NASDAQ:FOX] is said to be thinking about launching a bid for the 61% stake in the satellite broadcaster that it does not already own, The Daily Telegraph reported.

The newspaper’s market report section did not cite a source for the speculation.

New York City-based 21st Century Fox currently owns a 39% shareholding in Sky, which is based in the UK. The article went on to note that some City analysts were skeptical of the rumour, noting that the speculation is not new.

Sky shares closed 34p up at 853p in London yesterday, 29 June, giving the company a market capitalisation of GBP 14.66bn (EUR 17.70bn).

The report appeared on page seven of The Daily Telegraph’s Business section on Thursday, 30 June


Source The Daily Telegraph

ML:
3I - Due to interest in ACTION revalue asset which increases BV by 58p....+5%
LEGALS - Announced completed £3.8bn of annuity transactions in H1.........+2%
AENA - Supreme Court rules EUR517m trance to be reversed. EU2.2 ex-div..+1-2%
IHG - RevPAR data resilient in US +4.4% with midscale +3% & economy +3.1%.+1%
SWISSCOM - We UPGRADE to Buy with PO of CHF 570. Resilient domestic biz...+1%
TELENOR - We UPGRADE to Buy on non EU exposure and supportive dividend....+1%
PUBLICIS - We UPGRADE to Buy given relative valuations, PO unchanged 70...+1%
UBM - We UPGRADE to Neutral given FX upgrades and valn support, PO 640....+1%
AA - Disposal. Agrees to sell AA Ireland for EUR 157m to Carlyle Funds....+1%
THALES - Wins GBP 80m watchkeeper drone support contract from the U.K.....u/c
WIRECARD - Acquisition of Citi prepaid card services in the US. No fins...u/c
SERCO - Confirms guidance for trading profit of £65m v BAML £65.5m........u/c
WOOD GROUP - No change in guidance, EBITDA set to be down 20pc in FY16....u/c
MITCHELLS & BUTLERS - We DOUBLE DOWNGRADE to Underperform, new PO 230p....-1%
ACCOR - We DOWNGRADE to Neutral, PO EUR36. Weak YTD RevPAR growth runrate.-1%
WILLIAM HILL - We DOWNGRADE to Neutral, PO 280. Strategy lost momentum....-1%
BOUYGUES - We DOWNGRADE from Neutral to Under/p on limited visibility.....-1%
MEDIASET - We DOWNGRADE to Neutral, PO 4.0 to reflect macro uncertainty...-1%
DEUTSCHE - Not helpful. IMF says Deutsche poses greatest risk to system...-1%
JC DECAUX - We DOWNGRADE on macro uncertainty to Neutral, take PO to 37...-1%
HAVAS - We DOWNGRADE to Neutral given relative valuations, PO 8.0.........-1%
RTL - We DOWNGRADE to Underperform following sign't relative o/p v peers..-1%
ENTERPRISE INNS - We DOWNGRADE to Underperform, PO 80p on uncertainty...-1-2%
TULLOW - Mixed. 10 startups but no confirm insurance will pay for Jubilee.-2%
WHITBREAD - We DOUBLE DOWNGRADE from Buy to Underperform, PO 2950p......-2-3%


CS:
Alstom +0.5% To supply traction to line 3 of Chengdu metro in China
Autos +1-2% Autos +1% vs Europe close in the US, Brilliance +1%
Berkeley -1-2% Utd Overseas temporarily halt loans for London property
Costain M/P On course to deliver FY inline with Board's expectations
GSK M/P Malaria Vaccine Loses Efficacy Over 7 Years
K&N M/P OSRAM/LEDVANCE select K+N to manage supply chain in Brazil
Miners UNCH Copper +0.30%, Brent +0.15%, Iron Ore +1.55%, China UNCH
Novartis M/P PKC412 Show 60% Overall Response Rate in mastocytosis
Serco M/P No changes to forecasts, on 25th May they raised guidance
Tullow +1% Positive solution for Jubilee turret
UK H/builders UNCH Utd Overseas temporarily halt loans for London property
Vontobel +2-3% Gains CHF15b AUM by taking over product mgmt for Raiffeisen
Wirecard +2-3% Reached agreement to acquire Citi Prepaid Card Services
Wood Group M/P Cost savings and contract win offset by higher debt


Investec EU:
* AIRBUS-Boeing said to consider stretched 777 version to knock out A380....-1%
* BAYER-Monsanto demands up to $7bn ($10-$15 p/share) from Bayer(HB)........U/C
* CS-said to plan raising stake in China jv to 49% vs 33.3% (Reuters).....+0.5%
* DEUTSCHE BANK- US unit fails stress tests for second year.................-1%
* EUROFINS-strengthens growth options with €200m private placement..........+2%
* INFINEON-poss -ve? BMW team up w/ Intel, Mobileye on self-driving cars..-0.5%
* LUFTHANSA-CEO sees slump in flight prices continuing(Welt)................-1%
* SANTANDER- US unit fails stress tests for second year.....................-1%


Investec UK:
* AA-Proposed sale of Irish business for €156.6m..........................+1-2%
* COSTAIN-Update. Strong H1 trading. Expect FY16 to be in line with exp's...unch
* JOHN LAING-PreClose.Strong pipeline, well positioned for future growth...+1-2%
* REDDE-Pre close, slightly exceed expectations...........................+2-3%
* RIO-Transfers Bougainville stake, for no consideration(zero book value)....-1%
* SERCO-PreClose. Strong H1, FY on track. Will be H1 weighted................+1%
* SKY-Bid spec-Murdoch to return(D.Telegraph) 1500p/shs(DMirror!)..........unch
* STOBART GRP-Update. Trading in line, confident outlook stmnt..............unch
* TULLOW-Update, slight d/g to prod.(expected),rest is inline...............+1/2%
* VITEC-Update.H1 trading in line, reits FY guidance.......................unch
* WEIR GRP-COO, Dean Jenkins, stepping down (30th Sept)....................unch
* WOOD GRP-Update. Outlook & guidance unchanged..............................+1%

>>> What to look at today - 30th of June 2016

Dow +1.64% S&P +1.70% NAsdaq +1.86% Russell +2.20%
US Market Closed higher for a 2nd day in a row, following europe rebound. 2070 was a resistance, The area is significant as it represents the underside of Friday's gap down and rests within five points of the index's 50-day simple moving average (2076.49). Ten sectors ended in the green with financials (+2.3%) and energy (+2.0%) leading the pack while health care (+1.9%), industrials (+1.8%), and technology (+1.7%) followed. financial sector (+2.3%) ended the session near its best level of the day as money center banks outperformed. In the group, JPMorgan Chase (JPM 61.20, +1.68), Citigroup (C 42.12, +1.68), and Bank of America (BAC 13.19, +0.49) gained between 2.8% and 4.2% ahead of this evening's Comprehensive Capital Analysis and Review (CCAR) results. Expectations remain high that most banks will be granted approval to boost their respective capital return programs. The broader sector trimmed its monthly loss to 4.9%, but still sports a loss of 5.6% for the year. Today Volume were again above average with more than 1bil shares. traded. Vix was down for a third day i n a row, trading to pre brexit levels (16.64). Federal Reserve's annual capital analysis review (CCAR) of major financials gave passing grades to 30 out of 33 key institutions and once again singled out Santander and Deutsche Bank units based on "qualitative concerns." Among the dividend/buyback plans of top financials, Citigroup was most notable with a payout increase of 220% and a buyback of $8.6B (~7% of market cap). JPM and BAC plans were more modest - former maintained div with a 4.7% shares buyback and the latter raises its div by 50% with 3.7% share buyback. US Banks Moved after Hours C+2.2% JPM +0.9%. Mainland China markets underperformed, weighed down by cautious rhetoric from Fin Min Lou and mixed sentiment in the China Beige Book. Japan's preliminary May industrial output was the most notable datapoint, missing estimates on both sequential and annual basis.

Nikkei +0.39% Hang Seng +1.66% CSI +0.23% Shanghai +0.03%

Eur$ 1.1096 CNH 6.6622 CNY 6.6441 JPY 102.63 GBP 1.3394 CHF 0.9806 RUB 63.9627 WTI$ 49.36 (-1.04%)

S&P -0.31% EuroStoxx -0.28% Dax -0.10% SMI -0.19%

Macro :
- Germany Seeks to Convert Empty Offices to Homes: Bild-Zeitung
- CVC Raises EU650m Fund for Distressed Loans in Europe: FT

Keep an eye on :
- AIRBNB IPO : Airbnb Said Planning Dual Stock Sales to Put Off IPO: WSJ
- CRG IM : Banca Carige Plans NPL Sales of EU1.8b, With EU900m This Yr
- BAYN GY : Monsanto Said to Demand Up to $7b More From Bayer in Bid: HB
- BMW GY : BMW Is Said to Team Up With Intel, Mobileye on Self-Driving Cars
- CSGN VX : Credit Suisse Said to Plan to Raise Stake in China JV: Reuters
- ENI IM : ExxonMobil eyes Anadarko, Eni assets in Mozambique
- ENG SM : Enagas Agrees to Increase Stakes in Sagunto, GNL Plants
- ISP IM : Intesa CEO Opposes State Aid for Italian Banks: Boersen-Zeitung
- KER FP : Kering Will Appeal $13m Ruling on Slimane Non-Compete Clause
- LHA GY : Lufthansa CEO Spohr Sees Ticket Price Slump Continuing: Welt
- LGF US : Lions Gate Said to Be in Advanced Talks to Acquire Starz
- NOKIA FH : Nokia Raised to Buy at Goldman; Cites ‘Strategic Edge’
- RCS IM : RCS suitor Cairo Communications may not inprove public offer public offer
- HO FP : Thales Gets GBP80m Watchkeeper Drone Support Contract From U.K.
- UCG IM : Unicredit has Jean Pierre Mustier as favourite to become CEO
- VOW3 GY : Audi Leads China Luxury Car Sales Satisfaction Survey 4th Year
- WDI GY : Wirecard to Buy Citi Card Services by Share, Asset Deal