>>> Safran does not rule out taking part in sector consolidation--> ZC?

Safran does not rule out taking part in sector consolidation

Listed French aerospace and defence group Safran [EPA:SAF] is not ruling out consolidating in the defense sector, French daily Le Figaro reported citing chief executive Philippe Petitcolin.

The report noted that the group has close to no debt and a lot of room to manoeuvre.

Asked about a potential move on Zodiac Aerospace [EPA:ZC], Petitcolin, smiled in reply. The report noted that Safran made a move on Zodiac in 2010 but to no avail.

The original article appeared in print, page 21.

Source Le Figaro

>>> Church & Dwight circled by Durex maker and Procter & Gamble - reports (trans

Church & Dwight circled by Durex maker and Procter & Gamble 

Durex maker Reckitt Benckiser and Procter & Gamble are working on offers for Church & Dwight Co., Inc. (NYSE:CHD), the maker of Arm & Hammer brand products and Trojan condoms, the Spanish-language online Negocios.com reported.

Durex is ready to table the highest offer for 100% of Church & Dwight, in order to control the world market for condoms, the report said, citing unspecified sources. Church & Dwight is the market leader of prophylactic in the United States, and the transaction could be worth EUR 10bn to EUR 15bn, including all its business: allergy medication products, beauty and hygiene, the report said.

A market report in the Financial Times said that the shares of Reckitt Benckiser had increased by 0.3% to GBP 68,50 on the speculation, though Negocios.com did not mention Reckitt itself. Market sources however ruled out that antitrust authorities would permit a merger of Trojan with Durex, according to the market report.

Negocios, Financial Times

(CS) Global Equity Strategy - BRexit : Is it in the Price

Markets remain relatively more sanguine than polls on Brexit. However, the referendum has already weighed on domestic activity. Even more, a vote to leave could reduce trend GDP growth and there is also a risk of political contagion. In light of this, we remain mild sterling bears and stay benchmark FTSE100. On UK sectors, we upgrade retailing to benchmark from underweight and reduce our underweight of UK REITs (the most sterling-sensitive UK sector), while staying underweight regulated utilities.

>>> What to look at today - 19th of May 2016

Dow-0.02% S&P+0.02% Nasdaq+0.50% Russell-0.48%
US market ended the Wednesday affair on a flat note as the major averages rebounded following a hawkish reading of the FOMC's April minutes. minutes from the April FOMC meeting indicated that a June rate hike remains wholly on the table. The committee did note that it would continue to assess incoming economic data and whether it was consistent with the Fed's dual mandate. As a result, the fed funds futures market ended the day with a 33.8% likelihood of a rate hike at the June meeting, compared to yesterday's 15.0% probability. Financial (+1.9%), technology (+0.5%), and health care (+0.3%) outperformed. TGT pressured Retail Sector. Seven sectors ended in the red with utilities (-1.9%), materials (-1.5%), telecom services (-1.4%) and consumer staples (-1.0%). Volume were below average at 758mil shares. Asian equity markets are mixed even though today's US meeting minutes from the Fed gave their clearest indication that June FOMC meeting is live for a rate hike, investors will now pay even more attention to the next US jobs report on June 3rd and external factors such as the likelihood of a Brexit. In Japan, a private survey estimated the 1.7% annualized rise to be overstated due to the Leap Year effects, with actual adjusted growth closer to 0.5%. There was also more speculation surrounding plans for the next round of sales tax increase as Nikkei reported the decision will be made after the upper house elections this summer.

Nikkei +0.01% Hang Seng -0.45% CSI +0.27% Shanghai +0.50%

Eur$1.1210 CNH 6.5672 CNY 6.5477 JPY 110.33 GBP 1.4572 CHF 0.9884 RUB$ 66.2897 WTI$47.50 -1.43%

S&P -0.21% EuroStoxx-0.51% Dax -0.54% SMI -0.13%

Macro :
- Most Fed Officials Saw June Hike ‘Likely’ If Economy Warranted
- Ackman, Icahn, Loeb Said to Back New Lobby Group: Reuters
- European Commission Wants Movie Tax on Netflix: Politico
- Banks Are Europe’s Key Sector Call Now, Go Overweight: Bernstein
- GE Sees No Need for ‘Dramatic’ Move in Oil and Gas M&A: CEO
- Renzi Says Italy to Lower Personal Income Tax in 2017
- French PM Valls on French Radio : Executive pay is too high, is "immoral", will legislate on Exec. pay!!!!

Keep an eye on :
- AGS BB : Ageas 1Q Insurance Profit Beats Ests. on Gains in Life Business
- BAYN GY : Bayer Confirms Preliminary Talks for Monsanto Acquisition
- DL NA : Delta Lloyd Seeks Van Lanschot Stake Sale Before Brexit Vote: FD
- DVT FP : Devoteam 1Q Rev. Rises to EU133m, Boosted by Acquisitions
- ENEL IM : Enel to Present Offer for Metroweb Today or Tomorrow: MF
- ELE FP : Allianz Unit to Sell 3.9m Shares in Euler Hermes: Statement, Co to buy back shares (4.9%)
- FB US : Facebook Must Face Privacy Class Action Over Message Scanning
- FFP FP : Peugeot Family Fund FFP Is Candidate for Lyon Airport: Echos
- GATE SW : Gategroup 1Q Net Loss CHF6.5M vs CHF38m Loss
- HEN3 GY : Henkel 1Q Adj. Operating Profit Beats Est.; Confirms ‘16 Outlook
- BAER VX : Julius Baer End-April AUM Rise 2% to CHF305b, FX Impact Negative
- KU2 GY : Midea Wants to Help Kuka Grow in China, Gu Tells Handelsblatt
- KUNN VX : *EQT SETTLES TAKEOVER OF KUONI GROUP; HOLDS 98.02% VOTING RIGHTS
- MHG NO : Marine Harvest Exits NOK1.15b Stake in Grieg Seafood
- NOVN VX : Novartis Expands Entresto Clinical Trials For More Data
- ROG VX : Roche Quits China Cancer Drug Price Cutting Campaign: Bus. News
- ROG VX : Roche Wins FDA Approval for Tecentriq to Treat Bladder Cancer
- ROG VX / Chugai (4519) +2.3% on Phase 3 results
- RR/ LN : Rolls-Royce Said to Face Nigeria Probe, FT Reports
- CRM US : Salesforce Rises 5% After Boosting Yr Views; 1Q Beats
- SAN FP : Sanofi to Soon Start Testing Potential Zika Vaccines on Animals
- SEM AV : Semperit 1Q Profit Margins Rise; Still Sees ‘Stable’ 2016
- SIK VX : *SIKA GROUP REPLACES TNT EXPRESS IN THE S&P EUROPE 350 INDEX
- GLE FP : Oudea Sees Investment-Banking Revenues Rising in Line With GDP
- BID US : Sotheby’s Holder Shanda Gets FTC Approval to Boost Stake
- 7269 JP : Suzuki Motor Corp 7269.JP +3.6% (data manipulation probe)
- SPSN SW : Swiss Prime Says 1Q Results In Line; Confirms Guidance
- TEC FP : FMC Technologies and Technip to Combine: Driving Change by Redefining the Production and Transformation of Oil and Gas
- TSLA US : Tesla Drops as $2b Secondary Starts for Model 3 Ramp - {NSN O7E29O3V2801 <GO>}
- UCG IM : UniCredit CEO Ghizzoni May Step Down as Early as June 1: Sole
- LANS NA : Delta Lloyd Seeks Van Lanschot Stake Sale Before Brexit Vote: FD
- VOW3 GY : Volkswagen Says Brazil Ops Still Affected by Supply Halt

*FMC TECHNOLOGIES AND TECHNIP TO COMBINE: DRIVING CHANGE BY REDE

*FMC TECHNOLOGIES AND TECHNIP TO COMBINE: DRIVING CHANGE BY REDE
*TECHNIP, FMC TECHNOLOGIES ALL-STOCK TRANSACTION
*FMC: COMBINED CO WOULD HAVE EQUITY VALUE OF $13B
*TECHNIP HOLDERS TO GET 2 SHARES IN NEW CO. FOR 1 HELD
*EACH SHR OF TECHNIP TO BE CONVERTED INTO 2.0 SHRS OF TECHNIPFMC
*FMC HOLDERS TO GET 1 SHARE IN NEW CO. FOR EACH HELD
*FMC: COMBINATION TO DELIVER AT LEAST $400M IN SYNERGIES IN '19

FMC Technologies and Technip to Combine: Driving Change by Redefining the Production and Transformation of Oil and Gas

>>> Europe : Brokers Upgrades & Downgrades - 19th of May 2016

>>> Up
*ADMIRAL RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN (YDAY)
*BOSTON BEER RAISED TO HOLD VS SELL AT BERENBERG
*COMPASS GROUP RAISED TO NEUTRAL FROM UNDERPERFORM AT CREDIT SUISSE
*CREDIT SUISSE RAISED TO BUY VS NEUTRAL AT UBS
*KUKA RAISED TO HOLD VS SELL AT BANKHAUS LAMPE
*RSA INSURANCE RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN

>>> Down
*BURBERRY CUT TO NEUTRAL VS OUTPERFORM AT MACQUARIE
*DIRECT LINE INSURANCE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*FRESNILLO CUT TO SELL VS NEUTRAL AT CITI
*SNAM CUT TO HOLD VS BUY AT SOCGEN
*TELEFONICA DEUTSCHLAND CUT TO SELL VS NEUTRAL AT GOLDMAN

>>> PT Change


>>> Initiation
*FIELMANN RATED NEW SELL AT UBS; PT EU55
*GRANDVISION RATED NEW BUY AT UBS; PT EU26.5
*VEDANTA RESOURCES RATED NEW NEUTRAL AT GOLDMAN; PT 400P
*WINDELN.DE RESUMED HOLD AT BANKHAUS LAMPE, PT EU7

>>> Call
>> Stock
*BT GROUP ADDED TO CONVICTION BUY LIST AT GOLDMAN
*DEUTSCHE TELEKOM EXITS GOLDMAN CONVICTION BUY LIST; STILL BUY

>>> Asian Update

Asian Market Update: Australia jobs report mixed as AUD tests 2-month lows; Japan's Sharp rallies on FY results

***Economic Data***
- (JP) JAPAN Q1 HOUSING LOANS Y/Y: 1.9% V 2.2% PRIOR
- (JP) JAPAN MAR MACHINE ORDERS M/M: +5.5% V -2.0%E; Y/Y: 3.2% V +0.8%E
- (AU) AUSTRALIA APR EMPLOYMENT CHANGE: 10.8K V 12.0KE; UNEMPLOYMENT RATE: 5.7% (matches lowest level since July 2013) V 5.8%E
- (NZ) NEW ZEALAND MAY ANZ CONSUMER CONFIDENCE INDEX: 116.2 (7-month low) V 120.0 PRIOR; M/M: -3.2% V +1.7% PRIOR
- (NZ) NEW ZEALAND APR ANZ JOB ADVERTISEMENTS M/M: 1.7% V 3.1% PRIOR; 3rd straight increase
- (PH) PHILIPPINES Q1 GDP Q/Q: 1.1% V 1.4%E; Y/Y: 6.9% V 6.9%E (highest level since Q2 2013)
- (KR) South Korea Apr PPI Y/Y: -3.1% v -3.3% prior; 21st consecutive decline

***Index Snapshot (as of 04:00 GMT)***
- Nikkei225 flat, S&P/ASX -0.8%, Kospi -0.6%, Shanghai Composite +0.4%, Hang Seng -0.6%, Jun S&P500 -0.2% at 2,037

***Commodities/Fixed Income***
- June gold -1.3% at $1,259/oz, June crude oil -1.5% at $47.47/brl, Jul copper -0.1% at $2.06/lb
- JGB: (JP) Japan's MoF sells ¥1.00T in 0.4% (0.4% prior) 20-year JGBs; Avg yield: 0.288% v 0.262% (record low) prior; bid-to-cover: 3.36x v 3.55x prior
- (JP) Japan investors bought net ¥1.12T in foreign bonds v ¥270.2B in prior week; Foreign investors bought net ¥71.7B in Japan stocks v sold ¥435B in Japan stocks in prior week
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.5531 V 6.5216 PRIOR; weakest Yuan setting since Feb 1st
- (CN) PBOC to inject CNY85B in 7-day reverse repos

***Market Focal Points/FX***
- Asian equity markets are mixed even though today's US meeting minutes from the Fed gave their clearest indication that June FOMC meeting is live for a rate hike. Minutes declared that the market may be underestimating the chance of a June move, as most members were supportive of the hike if warranted by the economy. The jury is still out on whether or not the US conditions are sufficient for that June 15th hike, though investors will now pay even more attention to the next US jobs report on June 3rd and external factors such as the likelihood of a Brexit. In the meantime, US bond yields moved higher across the curve, and the implied probability of a rate hike in Fed Funds futures rose to 34%. In FX, USD consolidated today's gains in the majors - USD/JPY traded in a 30pip range above ¥110, EUR/USD in 20pip range above 1.1210, and AUD/USD extended declines below $0.72 - a 2 1/2 month low.

- Australia employment data - the key economic event of the day - added to the pressure on AUD. Although jobless rate remained at 5.7% v 5.8% consensus, data components showed participation rate falling to a 10-month low of 64.8%, full-time component declining for 2nd straight month, and total hours worked falling for the 3rd straight month and by the biggest margin since mid-2012. Ahead of the jobs report, Macquarie estimated RBA to cut rates by another 75bps or more over the next 2 years, forecasting AUD/USD falling further to $0.65.

- After yesterday's surprisingly strong Japan Q1 GDP report, a private survey estimated the 1.7% annualized rise to be overstated due to the Leap Year effects, with actual adjusted growth closer to 0.5%. Survey also forecast Q2 to return to contraction of about -0.4%, citing factors such as production disruptions from Kumamoto earthquake, less demand for electronic parts due to slowing smartphone market, and overall weakness in the global economy. There was also more speculation surrounding plans for the next round of sales tax increase as Nikkei reported the decision will be made after the upper house elections this summer. Govt spokesperson Suga reiterated however that there have been no changes in the plan for the sales tax hike in H1 of 2017.

- After some delay, Sharp reported FY15/16 and the results are not as bad as feared. Operating loss of ¥162B compared to loss ¥170B latest forecast and Rev was roughly in line at ¥2.46T v ¥2.45T estimate. Consumer electronics sales were down 18% and Display sales down 9%, but sales of components rose 10%.

***Equities***
US equities / ADRs:
- RPRX: Reports positive clinical data for Oral Proellex in women with severe menstrual bleeding due to Uterine Fibroids; +30.2% afterhours
- AEO: Reports Q1 $0.22 (adj) v $0.18e, R$749.4M v $731Me; Guides Q2 $0.20-0.21 v $0.20e; Q1 SSS +6%; +14.6% afterhours
- URBN: Reports Q1 $0.25 v $0.25e, R$763M v $760Me; +7.2% afterhours
- ZIOP: Announces Clinical Data Highlighting Favorable Interim Survival Results with Gene Therapy Candidate Ad-RTS-hIL-12 in Brain Cancer; +7.1% afterhours
- CRM: Reports Q1 $0.24 v $0.23e, R$1.92B v $1.89Be Raises FY17 $1.00-1.02 v $1.01e, R$8.16-8.20B v $8.12Be (prior $0.99-1.01, R$8.08-8.12B); +6.1% afterhours
- CSCO: Reports Q3 $0.57 v $0.55e, R$12.0B v $11.9Be; Guides Q4 $0.59-0.61 v $0.58e, Rev 0-3% y/y, implies $12.8-13.2B v $12.3Be; +5.7% afterhours
- TTWO: Reports Q4 $0.46 v $0.27e, R$342.5M v $309Me; Guides Q1 -$0.40 to -$0.30 v $0.22e, R$225-260M v $364Me; -0.8% afterhours
- TSLA: Offering $2.0B (7.1% of market cap) in common stock and $1.4B (4.9% of market cap) in shares sold by Musk in secondary offering; Musk exercising 5.5M shares (4.1% of shares outstanding) in stock options; -0.3% afterhours
- LB: Reports Q1 $0.59 (adj) v $0.55e, R$2.61B v $2.62Be; Cuts FY16 $3.60-3.80 v $4.01e (prior $3.90-4.10); Expects to report May SSS down low to mid-single digits versus last year; -4.8% afterhours

Notable movers by sector:
- Consumer discretionary: Shinsegae Co 004170.KR +4.5% (opens fist duty-free store in Seoul); JB Hi-Fi JBH.AU +3.9% (prelim talks for acquisition of Good Guys)
- Industrials: Suzuki Motor Corp 7269.JP +3.6% (data manipulation probe); James Hardie Industries JHX.AU +6.9% (FY16 result); Cathay Pacific Airways 293.HK -0.2% (Apr result)
- Technology: Tencent 700.HK -2.2% (Q1 result); Sharp Corp 6753.JP +1.4% (FY15/16 result); YPB Group YPB.AU +3.6% (guidance)
- Materials: Metcash MTS.AU -0.8% (consider bid for Masters business of Woolworths); Baoshan Iron & Steel Co 600019.CN +0.8% (China to cut overcapacity)
- Energy: China Shenhua Energy 1088.HK +0.5% (China to cut overcapacity)
- Healthcare: Chugai Pharmaceutical 4519.JP +1.9% (Phase III result)

>>> EgyptAir flight MS804 from Paris to Cairo vanishes

EgyptAir flight MS804 from Paris to Cairo vanishes

EgyptAir flight 804 from Paris to Cairo has gone missing, according to a statement from the airline’s official Twitter account.

In a series of tweets on the incident, the airline cites an “informed source” as stating that the flight, which departed Paris at 23:09 for Cairo, had “disappeared from radar” 10 miles out from Egyptian airspace.