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Unicredit appointment of new CEO could open way for EUR 5bn-7bn capital increase or asset sell-off

Wind and 3 Italia attract interest from five potential bidders for excess assets following merger

Asian Market Update: Equities edge higher going into G7 despite more hawkish Fed comments

***Economic Data***

- (NZ) NEW ZEALAND APR RETAIL CREDIT CARD SPENDING M/M: 2.5% V -1.4% PRIOR; Y/Y: 9.1% V 4.8% PRIOR

- (NZ) New Zealand Apr Net Migration: 5.5K v 5.3K prior

- (MY) MALAYSIA APR CPI Y/Y: 2.1% V 2.1%E (slowest annual pace in 11 months)

***Index Snapshot (as of 04:00 GMT)***

- Nikkei225 +0.3%, S&P/ASX +0.7%, Kospi +0.1%, Shanghai Composite +0.1%, Hang Seng +1.2%, Jun S&P500 +0.3% at 2,045

***Commodities/Fixed Income***

- June gold flat at $1,255/oz, July crude oil +0.9% at $49.22/brl, Jul copper +0.2% at $2.07/lb

- GLD: SPDR Gold Trust ETF daily holdings rise 4.4 tonnes to 860.3 tonnes; 10th straight increase; highest since Nov 2013

- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.5510 V 6.5531 PRIOR

- (CN) PBOC to inject CNY50B in 7-day reverse repos; Injects net CNY50B this week v drained CNY110B prior

- (CN) China MoF sells 50-yr bonds at 3.70%

- (JP) BOJ offers to buy ¥350B in 1-3yr JGBs, ¥440B in 3-5yr JGBs, ¥240B in 10-25yr JGBs, and ¥160B in JGBs with maturity over 25-yr as well as ¥3.0T in T-bills

- (AU) Australia MoF (AOFM) sells A$1.0B in 1.75% 2020 Bonds; avg yield: 1.7538%; bid-to-cover: 3.46x

***Market Focal Points/FX***

- Asian equity markets are edging higher despite some modest losses in the US session where New York Fed's Dudley - one of the most dovish voters on the FOMC - confirmed that June is a live meeting for another rate hike. Hang Seng is the leader among key indices, closely tracked by Australia, as energy names outperform in both markets on a rally in oil prices. In FX, USD/JPY is at the top of its 30pip range late in the day around 110.10, AUD/USD was in a 20pip range above 0.7220, and NZD/USD rallied by over 30pips above 0.6770, with market volatility compressed in the absence of any meaningful economic data.

- As Japan begins its G7 summit of finance leaders, early reports suggest attendees looking for a more balanced approach to sustainable economic growth - stating that monetary policy alone will not lead to recovery. G7 Leaders also expressed concern over risks associated with Brexit, even with the latest polls suggesting the momentum is with the Stay camp. There was little indication over whether Japan's clamoring for weaker JPY would be construed as an inappropriate intervention. In the mean time, Japan lawmakers are also mobilizing to push for the cabinet to go ahead with its plans to raise sales tax by 10% next year. Ruling LDP party official Yamamoto is drafting a proposal recommending that the sales tax be raised, accompanied by a ¥15-20T fiscal package.

- In Australia, Oil Search announced a $2.2B bid for Interoil, entering a partnership with Total on its PNG energy exposure. Recall Oil Search was the target of Woodside Petroleum bid as of late 2015, though it determined the bid undervalued the company. In US corporate afterhours movers, Tesla priced its 9.6M share secondary at $215/shr. Gap initially rallied after reporting Q1 results, but erased all gains after a cut to junk at S&P.

***Equities***

US equities / ADRs:

- ORIG: Reports Q1 $1.17 adj v $0.67e, R$508M v $440Me; +33.7% afterhours

- IOC: Oil Search to acquire Interoil for $2.2B; +31.0% afterhours

- AMAT: Reports Q2 $0.34 v $0.32e, R$2.45B v $2.42Be; +8.5% afterhours

- GPS: Reports Q1 $0.32 v $0.32e, R$3.44B v $3.44Be; To close 75 stores; +0.5% afterhours

- ADSK: Reports Q1 -$0.10 v -$0.14e, R$511.9M v $513Me; -2.1% afterhours

- BRCD: Reports Q2 $0.22 v $0.22e, R$523M v $528Me; Raises dividend 22% to $0.055 (implied yield 2.8%); -2.4% afterhours

- ROST: Reports Q1 $0.73 v $0.73e, R$3.09B v $3.11Be; -6.2% afterhours

- YHOO: Verizon-led consortium said to bid $2-3B for core assets; Bids reportedly may fall short of the $4-8B target range - financial press

Notable movers by sector:

- Consumer discretionary: Bauhaus International Holdings 483.HK -3.4% (profit warning); Anta Sports Products 2020.HK -7.9% (Q1 result); Cogobuy Group 400.HK -1.5% (Q1 result); Southern Cross Media Group SXL.AU +1.4% (enters new affiliation agreement); Hyundai Rotem Co 064350.KR +4.0% (awarded order)

- Industrials: Ningbo Port 601018.CN +3.3% (approval for share sale); Mitsubishi Motors 7211.JP -1.7% (Japan govt to offer aid)

- Energy: Oil Search OSH.AU +1.3% (to acquire Interoil); Cooper Energy COE.AU +0.9% (share purchase plan)

Une collection «unique» et «historique» de grands crus aux enchères à Genève

Des vins prestigieux et très recherchés seront mis aux enchères ce dimanche à Genève. La vente de ces bouteilles devrait atteindre 6 à 9 millions de francs

Plus de 1 400 bouteilles de grands crus du Domaine de la Romanée-Conti, de prestigieux vins de Bourgogne extrêmement recherchés et parmi les plus chers au monde, seront proposées aux enchères dimanche à Genève.

Parfaitement conservées aux Ports-Francs de Genève depuis une quinzaine d'années, ces bouteilles appartiennent à un investisseur qui souhaite rester dans l'anonymat, a expliqué jeudi aux médias le directeur de la maison d'enchères Baghera Wines, le Français Michael Ganne, qui a travaillé pendant plusieurs années chez Christie's.

Une collection «unique» et «historique»

Les 266 lots du Domaine de la Romanée-Conti qui seront proposés dimanche représentent un ensemble de 1 407 bouteilles, magnums et jéroboams de 7 grands crus produits entre 1952 et 2011 (Romanée-Conti, La Tâche, Richebourg, Romanée-Saint-Vivant, Grands Echezeaux, Echézeaux, Montrachet).

Cette collection est «unique» et «historique», d'après Michael Ganne, qui explique qu'habituellement les maisons de vente aux enchères proposent seulement des dizaines ou une centaine de bouteilles du Domaine de la Romanée-Conti.

Une valeur totale estimée à 4 millions de francs pour les bouteilles de Romanée-Conti

Les estimations par lot vont de 1 600 francs pour une bouteille de La Tâche 1966 à entre 120 000 et 200 000 francs pour 12 bouteilles de Romanée-Conti 1988. L'ensemble de ces lots est estimé à 4 millions de francs.

Les grands crus du Domaine de la Romanée-Conti figurent parmi les plus chers au monde en raison notamment de leur grande rareté, car le domaine est très petit (une trentaine d'hectares dont seulement un hectare dédié au grand cru Romanée-Conti). Seules quelque 200 bouteilles pourront ainsi être produites cette année et il y a une liste d'attente de 100 000 personnes qui espèrent un jour acheter une bouteille, a affirmé Michael Ganne.

La vente «la plus importante de ces deux dernières décennies en Europe continentale»

Dimanche, Baghera Wines proposera aussi quelque 3 000 bouteilles des grands crus de Bordeaux, dont une bouteille d'Yquem 1848 à 15 000 francs et 12 bouteilles de Petrus 1982 estimées à 45 000 francs, ainsi que des lots de Champagne millésimés et des cigares cubains.

Au total, la vente devrait atteindre 6 à 9 millions de francs. Soit plus du double de la première vente organisée en décembre dernier par cette jeune maison (3 millions de francs).

D'après Michael Ganne, cette vente de vins d'exception est «la plus importante de ces deux dernières décennies en Europe continentale».

Il a cependant expliqué que le marché était moins porteur qu'il y a quelques années, en raison notamment des incertitudes économiques actuelles en Chine. Le régime chinois s'est lancé dans une campagne anti-corruption, ce qui freine également les ventes, selon le directeur de Baghera Wines.

Yahoo Suitors Expected to Bid $2 Billion to $3 Billion, Below Past Indications

Most of previous bids for core business came in the range of $4 billion and $8 billion; bids are due first week of June

By Douglas MacMillan and Ryan Knutson

Updated May 19, 2016 11:25 p.m. ET

Verizon Communications Inc. and others are expected to bid around $2 billion to $3 billion in the auction for Yahoo Inc.’s core business, less than what the troubled Internet pioneer was expected to fetch, according to people familiar with the matter.

The telecom giant is considered the front-runner in a field that includes private-equity buyers, some of whom are expected to bid in the low end of that range, the people said. As recently as April, people close to the process said Yahoo’s core business would likely go for between $4 billion and $8 billion.

Some offers could still be above the $2 billion-to-$3 billion range, other people said, and it is generally in the interest of bidders to play down their enthusiasm in an auction. It is also possible that not everyone will bid for all of the core business and that proposals will be structured differently.

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Yahoo has set a deadline in the first week of June for the next round of bids, some of the people said. It isn’t clear whether that will be the final round or if another one will follow, they said.

Bidders have lowered their expected prices following weeks of sale presentations by Yahoo Chief Executive Marissa Mayer at the company’s Sunnyvale, Calif., headquarters and its disclosure of data that detailed the company’s flagging prospects.

Other bidders in contention include buyout firm TPG and an investor group that includes Bain Capital, Vista Equity Partners and former Yahoo CEO Ross Levinsohn, people familiar with the matter have said. Dan Gilbert, the Detroit investor and founder of Quicken Loans, is also in the mix and may be backed by billionaire investor Warren Buffett.

It is difficult to value Yahoo’s core Web business in part because such a large portion of the company’s roughly $35 billion market capitalization is based on its stakes in Alibaba Group Holding Ltd. and Yahoo Japan. Youssef Squali, an analyst at Cantor Fitzgerald, last month estimated the business is worth between $4 billion and $5 billion.

Yahoo last month issued a reminder of the difficulties it faces when it said first-quarter revenue dropped 18% to $859.4 million, excluding commissions paid to search partners. That is the first time that figure has fallen below $1 billion since Ms. Mayer took the reins nearly four years ago.

The segment of Yahoo’s business that Ms. Mayer has designated as its growth engine is slowing down dramatically. Revenue from “mavens”—a financial metric the company introduced last year to track mobile, video, native and social ads—rose 6.8% from the prior year to $390 million. That compares with 26% in the fourth quarter, 43% in the third period and 60% in the second quarter.

Potential buyers have in recent weeks had access to a “data room” with nonpublic details about the company’s financial performance and prospects.

In meetings with potential suitors, Ms. Mayer has acknowledged that the company is still in the middle of a turnaround, according to one person who attended a meeting.

Should bids come in much lower than expected, Yahoo could abandon the sale and proceed with her turnaround effort.