>>> ArcelorMittal Details of Right Issue 7 for 10 @ €2.20 (-48.15%)

7 for 10 Rights issue of 1,262,351,531 new shares at a subscription price of EUR 2.20 per new share

Rights will be credited to clearing systems and to the accounts of shareholders directly registered in the European share register and the New York share register on 15 March 2016. Mailing of certificates evidencing Rights directly registered in the New York rights register will begin on 15 March 2016.

>>> What to look at today - 11th of March 2016

Dow-0.03% S&P+0.02% Nasdaq-0.26% Russel-0.82%
US Market Closed mixed. decline was lead by a lack of sector leadership from the heavyweight technology (-0.1%) and financial (-0.1%) sectors, uncertainty over whether the European Central Bank has reached its easing limits, and losses in crude oil. Today's trade took on a sell the news posture despite the ECB's latest policy statement exceeding investors expectations regarding the size and scope of the central bank's easing program. To that point, the ECB lowered its interest rate corridor and expanded the amount of its monthly asset purchases to 80 billion euros. To be fair though, participants likely responded to comments from ECB President Mario Draghi, which cast doubts on future interest rate cuts. As a result, equity markets pulled back from their early highs. WTI crude surrendered 1.2% ($37.78/bbl) and forced energy (UNCH) near the bottom of the leaderboard. health care (+0.1%), consumer discretionary (+0.2%), telecom services (+0.5%), and materials (+0.5%) topped the leaderboard. volume were in line with average at 1.019bil shares. US After Hours SSKN +31.8%, PFNX +21.9%, SNC +16.7%, SGRY +15.5%, ULTA +13%, FXCM -20.3%, VMEM -17.6%, MED -8.9%, RUN -8.1%, ZUMZ -8.1%, LOCO -5.9% following earnings/guidance QUIK -20%, IMMY-6%, BCEI-5% on share offering. Asian equity markets are mixed as investors digest aggressive policy efforts from the ECB overnight against the subsequently less dovish rhetoric from Pres Draghi downplaying the need for even more easing down the pike. The focus turns to FOMC next week with expectations of similarly cautious approach by Yellen and co in spite of continued run of solid job gains, some progress on inflation, and reduced volatility overseas. The latest Yuan fix produced the most volatility in an otherwise quiet session, as the PBoC set USD/CNY at the highest level of 2016. PBoC's objective may be to support the exchange rate in defense against the crowded global-macro fund's short-yuan thesis in the wake of the disappointing exports and trade data out this week. In Tokyo, local press reported that February investment fund outflows were the largest since late 2008 as investors are much more reluctant to buy into the recent weakness. Japan Fin Min Aso said it was important for BOJ to strive to reach its 2% inflation target, and there were also more reports related to the possibility of more fiscal stimulus, with a ¥10T figure floated as speculation even as PM Abe has most recently reiterated there was no need for an extra budget at this point in time.

Nikkei +0.51% Hang Seng +0.85% Shanghai +0.05%

Eur$ 1.1197 CNY 6.4945 CNH 6.4943 JPY 113.54 GBP 1.4274 CHF 0.9863 RUB$ 70.87 WTI 38.65 (+2.15%)

S&P +0.73% EuroStoxx +1.75% Dax +11.58% SMI +0.86%

Macro :
ECB’s Coene Questions If 2% Inflation Target Is Realistic: Tijd
U.S. Feb. Budget Deficit at $192.6b; Est. $196.25b
Government Strikes Back at Silicon Valley’s Support for Apple


Keep an eye on :
- AAPL US : Apple Invite for March 21 Event Says ‘Let Us Loop You in’
- ATCOA SS : Atlas Copco's compressed air and gas, and vacuum business actively looking for targets - Press Releas
- BIM IM : Banca Intermobiliare attracts interest of Fosun - Il Sole 24 Ore
- BP IM : BPM, Banco Pop. Said to Rework Deal as ECB Holds Back Approval
- BC IM : Cucinelli 2015 Ebitda In Line, Sees Double-Digit Growth in 2016
- EN FP : Iliad’s Niel ‘Very Confident’ on Orange-Bouygues Deal: Tribune
- CA FP : Carrefour Says It Is Not in Talks to Invest in Israel’s Victory
- CO FP : Casino’s Big C Vietnam Stores Said to Draw Lotte, TCC Bids
- DBK GY : JPMorgan, Goldman Said to Discuss Buying Deutsche Bank Swaps
- DTE GY : Deutsche Telekom Said to Consider Options for Tower Assets
- EDF FP : French State Auditor Says EDF’s Finances Are Fragile: Le Monde
- EDP PL : EDP Renovaveis Says Wins 20-Year Energy Contract in Canada
- BSAAN SW : J. Safra Sarasin 2015 Net Rises 12% to CHF230.5m, AuM CHF144b
- LAVA IM : Lavazza Buys Carte Noire for EU700m-EU750m: Radiocor
- MRLV US : Marvell Technology Says It Hasn’t Had Talks With Broadcom
- NESN VX : Nestle in Talks With Nerios Over Sale Quezac, Figaro Reports
- OML LN : Old Mutual to Split Up Units to Boost Growth, Unlock Value
- PLT IM : Parmalat 2015 Rev., Ebitda Miss Ests.
- PLT IM : Parmalat Directors Resign, Prompting Board Expiration
- PFC LN : Petrofac Shareholder Offers to Sell About 5m Shares: Terms
- PAH3 GY : Porsche Said to Weigh Bosch, Panasonic for Tesla-Fighter Battery
- RWE GY : RWE denies plans to exit Turkey
- SFQ GY : SAF Holland Sees 2016 Sales of EU1.05b-EU1.07b; Est. EU1.095b
- SLT GY : Schaltbau Targets 2016 Sales, Earnings Growth Above 10%
- SPIE FP : Spie 2015 Net EU38.3M Vs. Loss of EU18.6m in 2014
- SW FP : Sodexo to Join CAC 40; Amundi, Worldline, Spie to Enter SBF 120
- GLE FP : SocGen Said to Win Cut to $500 Million Rate-Rigging Fine From EU
- VATT SS : Vattenfall Struggles to Sell German Lignite Unit: Handelsblatt
- VOW3 GY : VW Said to Have Kept Refining Defeat Device Software 2015: NDR
- VOW3 GY : VW Unit MAN SE Reports 2015 EU92m Op. Profit After Sales Drop

>>> Europe : Brokers Upgrades & Downgrades - 11th of March 2016

>>> Up
*AFRICA OIL RAISED TO OVERWEIGHT VS EQUAL WEIGHT AT BARCLAYS
*ANADARKO PETROLEUM RAISED TO BUY VS NEUTRAL AT GOLDMAN
*AXEL SPRINGER RAISED TO HOLD VS SELL AT BERENBERG
*CARRIZO OIL & GAS RAISED TO BUY VS NEUTRAL AT GOLDMAN
*FRESENIUS SE RAISED TO OVERWEIGHT VS EQUAL WEIGHT AT BARCLAYS (Note Attcahed)
*HERTZ UPGRADED TO OVERWEIGHT/CAUTIOUS AT MORGAN STANLEY
*MUNICH RE RAISED TO BUY AT CITI
*SAIPEM RAISED TO CONVICTION BUY VS NEUTRAL AT GOLDMAN
*VALEO RAISED TO ADD VS REDUCE AT ALPHAVALUE

>>> Down
*ACACIA MINING CUT TO NEUTRAL VS BUY AT UBS
*ANGLO AMERICAN CUT TO UNDERPERFORM VS NEUTRAL AT EXANE
*ANTOFAGASTA CUT TO NEUTRAL VS OUTPERFORM AT EXANE
*CARILLION CUT TO NEUTRAL AT JPMORGAN
*CARREFOUR CUT TO NEUTRAL VS BUY AT UBS
*EP ENERGY CUT TO SELL VS NEUTRAL AT GOLDMAN
*ITHACA ENERGY CUT TO EQUAL WEIGHT VS OVERWEIGHT AT BARCLAYS
*K+S CUT TO REDUCE VS ADD AT ALPHAVALUE
*MASSIMO ZANETTI CUT TO NEUTRAL AT JPMORGAN
*RENAULT CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE
*RESTAURANT GROUP CUT TO HOLD VS BUY AT DEUTSCHE BANK
*SWISS RE CUT TO NEUTRAL AT CITI

>>> Reiteration
*ILIAD REITERATED OVERWEIGHT AT BARCAP, PT RAISED FROM €230 to €240 (Note attached)

>>> Initiation
*ARCELORMITTAL RATED NEW OVERWEIGHT AT MORGAN STANLEY
*REPSOL RATED NEW NEUTRAL AT EXANE; PT EU10

>>> Call
>> Stock
*SAIPEM RAISED TO CONVICTION BUY VS NEUTRAL AT GOLDMAN
*SHELL ADDED TO CONVICTION BUY LIST AT GOLDMAN
*TOTAL REMOVED FROM CONVICTION BUY LIST AT GOLDMAN; STILL BUY

>>> Lavazza to pay EUR 700m for Carte Noir

Lavazza to pay EUR 700m for Carte Noir 

Lavazza, the Italian coffee group, is to pay EUR 700m for French competitor Carte Noir, Italian language daily Il Messaggero reported. The report cited CEO Antonio Baravalle who said that EUR 300m will come from Lavazza's own resources and EUR 400m from financing provided by BNP Paribas, Intesa Sanpaolo, Rabobank and Unicredit.

The report added that the deal closed on 29 February following approval from the European and French antitrust authorities.

Lavazza is now looking to buy other companies with a strong presence in their respective companies. The item noted that Carte Noir has a 20% share of the French market.
Il Messaggero

>>> Banca Popolare and BPM have 15 days at most to agree merger – report (transl

Banca Popolare and BPM have 15 days at most to agree merger 

Banco Popolare and Banca Popolare di Milano have 15 days at the most to reach agreement on a merger, Il Messaggero reported. This is the deadline given by the banks to Pierfrancesco Saviotti and Giuseppe Castagna, the CEOs of Banco Popolare and BPM respectively, the Italian-language daily noted in an unsourced report.

For a merger to go through the European Central Bank (ECB) will have to signal that it approves of the merger proposal, the report noted.

To help win over the ECB, the banks have offered to divest EUR 7bn in non-performing loans over three years to bring down the ratio of NPLs to total loans for the merged entity from 23% to 21%, the item noted.

Il Messaggero

>>> Abengoa bondholders Centerbridge, BlackRock, Invesco, Värde, Sophic, DE Shaw

Abengoa bondholders Centerbridge, BlackRock, Invesco, Värde, Sophic, DE Shaw, TCI poised to control equity; Sabadell sells loan 

Abengoa bondholders, including Centerbridge, BlackRock, Invesco, Värde, Sophic, DE Shaw and other creditors willing to extend funding to the troubled Spanish clean tech group including The Children’s Investment (TCI) are poised to take control of the company, Expansion reported citing unidentified sources. Bondholders, as advised by Houlihan Lokey, have largely driven recent negotiations with the company with a view to avoid a court-supervised bankruptcy leading to a liquidation, Expansion said.

A change in control of Abengoa will result upon the implementation of a recently announced deal. Abengoa announced on Thursday (10 March) the outline of a term sheet to restructure its debts agreed with its main creditors. The deal, valued at almost EUR 10bn according to the Spanish-language paper, combines new liquidity lines, guarantees, debt capitalisation and maturity extensions.

The preliminary agreement as announced offered no details about the treatment of Abengoa’s debt with suppliers, Expansion noted. The Spanish press has previously reported on the formation of a group of suppliers negotiating with the company and a framework for negotiations based on the modification of payment terms and debt maturity extensions.

Financial creditors supportive of the agreement of the deal as announced yesterday represent c. 40% of the debt to be restructured under the plan and thereby fall far short of the 75% necessary to secure a court approval of a deal under its pre-concurso regime, a separate report in El Confidencial noted.

Both El Confidencial and Expansion reported on the sale by Abengoa lender Sabadell to an opportunistic investor of its EUR 75m piece of a EUR 1.4bn syndicated loan at a 85% discount of its nominal value.

The El Confidencial report went on to say that Sabadell's transfer of a portion of its outstanding debt with Abengoa to the unidentified hedge fund signals its exit from the so-called G-7 group of the company's relationship lenders: a group that is thought to still include Santander, Caixabank, Bankia, Banco Popular, Crédit Agricole and HSBC.

According to the El Confidencial report, Sabadell's other outstanding loans to Abengoa include EUR 236m in working capital lines and EUR 77m in project finance facilities.

As previously reported by this news service, on Thursday (10 March) Abengoa reached an agreement in principle regarding the terms of a deal to restructure its debt and recapitalise the group. In a statement filed with the Spanish securities regulator, the company said it believes that the term sheet contains the essential elements to achieve a future restructuring agreement, which shall be subject to the percentage of accessions required by law.

>>> Asian Update

Asian Market Update: PBoC strengthens Yuan fix to 2016 highs; Markets process ECB moves with an eye on Fed


***Economic Data***
- (JP) JAPAN Q1 BUSINESS SURVEY INDEX (BSI) LARGE ALL INDUSTRY Q/Q: -3.2 V +4.6 PRIOR; BSI LARGE MANUFACTURING Q/Q: -7.9 (7-quarter low) V +3.8 PRIOR
- (NZ) NEW ZEALAND FEB FOOD PRICES M/M: -0.6% V +2.0% PRIOR
- (NZ) NEW ZEALAND FEB MANUFACTURING PMI: 56.0 V 58.0 PRIOR
- (NZ) New Zealand REINZ Feb median home price +4.7% y/y v +5.2% prior; Home sales 7.3K v 5.0K prior
- (PE) PERU CENTRAL BANK (BCRP) LEAVES REFERENCE RATE UNCHANGED AT 4.25%; NOT EXPECTED
- NPD: Feb video game sales -12% y/y to $842.5M

***Index Snapshot (as of 04:30 GMT)***
- Nikkei225 flat, S&P/ASX +0.5%, Kospi +0.2%, Shanghai Composite -0.3%, Hang Seng +0.8%, Jun S&P500 +0.7% at 1,992

***Commodities/Fixed Income***
- Apr gold -0.1% at $1,271/oz, Apr crude oil +2.3% at $38.72/brl, May copper +1.1% at $2.2/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 6.0 tonnes to 798.8 tonnes; Highest since Aug 2014
- SLV: iShares Silver Trust ETF daily holdings rise to 10,076 tonnes from 10,035 tonnes ; highest since Dec
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.4905 V 6.5129 PRIOR; Strongest Yuan setting since Dec 30th
- (CN) PBOC to inject CNY20B in 7-day reverse repos
- (JP) BOJ offers to buy ¥400B in 1-3yr JGBs, ¥420B in 3-5yr JGBs, ¥450B in 5-10yr JGBs
- (AU) Australia MoF (AOFM) sells A$500M in 2.75% 2019 Bonds; avg yield: 2.0257%; bid-to-cover: 3.92x

***Market Focal Points/FX***
- Asian equity markets are mixed as investors digest aggressive policy efforts from the ECB overnight against the subsequently less dovish rhetoric from Pres Draghi downplaying the need for even more easing down the pike. The focus turns to FOMC next week with expectations of similarly cautious approach by Yellen and co in spite of continued run of solid job gains, some progress on inflation, and reduced volatility overseas. June is now the more active contract in S&P's rising more than 0.5% in electronic trade and oil prices extended this week's rally with a 2% spike, while safe-haven gold was on the defensive with a modest downturn. In FX, USD/JPY traded about 40pips on both sides of 113.10, favoring the upside late in the day. AUD/USD was the preferred choice of risk-on bets after the latest RBNZ easing, rising nearly 50pips toward 0.75, though NZD/USD was still up a more modest 25pips above 0.6680. EUR/USD briefly retested the upside of 1.12 before retreating to 1.1170s late in the day.

- The latest Yuan fix produced the most volatility in an otherwise quiet session, as the PBoC set USD/CNY at the highest level of 2016. PBoC's objective may be to support the exchange rate in defense against the crowded global-macro fund's short-yuan thesis in the wake of the disappointing exports and trade data out this week. The central bank could also be looking to get a buffer going into this weekend's release of lending, industrial output, and retail sales figures. Regardless, the strong yuan fix contributed to positive sentiment - opposite to the weaker settings in recent past that sparked outflow concerns from China's slowing economy. Separately, PBoC Dep Gov Yi remarked that the monetary policy remains "prudent" after last week's CNPC claim to policy "with flexibility" along with the latest RRR cut. Also of note, more sources indicated that PBoC and NDRC are working together to come up with rules that allow swapping of bank loans into equity as part of govt efforts to reduce debt levels.

- In Tokyo, local press reported that February investment fund outflows were the largest since late 2008 as investors are much more reluctant to buy into the recent weakness. Poor manufacturing data justifies the caution - today's Q1 BSI saw its biggest downturn in nearly 2 years while the prospects for Q2 also showed deterioration, portending rising possibility of another Japan recession. Japan Fin Min Aso said it was important for BOJ to strive to reach its 2% inflation target, and there were also more reports related to the possibility of more fiscal stimulus, with a ¥10T figure floated as speculation even as PM Abe has most recently reiterated there was no need for an extra budget at this point in time.

***Equities***
US equities / ADRs:
- ULTA: Reports Q4 $1.69 v $1.54e, R$1.27B v $1.24Be; Announces $200M buyback (2% of market cap); +12.5% afterhours
- BOJA: Reports Q4 $0.22 v $0.19e, R$128.8M v $128Me; +6.8% afterhours
- LOCO: Reports Q4 $0.15 v $0.13e, R$86.3M v $88.0Me; -5.9% afterhours
- ZUMZ: Reports Q4 $0.50 v $0.49e, R$242.4M v $242Me; FEB SSS -8.6%; -7.9% afterhours
- FXCM: Reports Q4 EBITDA $12.6M v $40.8M y/y, R$67.0M v $74M y/y; -24.5% afterhours

Notable movers by sector:
- Consumer discretionary: Belle International Holdings 1880.HK -8.3% (Q4 result)
- Consumer staples: Shanghai Jahwa United Co 600315.CN -3.7% (FY15 result)
- Industrials: Sinosteel Engineering & Technology Co 000928.CN -2.3% (FY15 result); CRRC +7.7% ($1.3B contract)
- Technology: Samsung Electronics 005930.KR +1.8% (Launches S7 flagship smartphones); Toshiba Corporation 6502.JP +1.4% (financing plan for Toshiba medical asset)
- Energy: Osaka Gas Co. 9532.JP +1.7% (guidance)

>>> After Hours Summary: SSKN +31.8%, PFNX +21.9%, SNC +16.7



After Hours Summary: SSKN +31.8%, PFNX +21.9%, SNC +16.7%, SGRY +15.5%, ULTA +13%, FXCM -20.3%, VMEM -17.6%, MED -8.9%, RUN -8.1%, ZUMZ -8.1%, LOCO -5.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance:  SSKN +31.8%, PFNX +21.9%, SNC +16.7%, SGRY +15.5%, ULTA +13% (also announced $200 mln accelerated share repurchase plan) , THLD +12.2%, MMI +8.8%, ATHX +8.7%, FNSR +7.6%, BOJA +6.8%, FPRX +5.5%, SYN +5.4%, NVEE +5.1%, CMTL +2.6%, ABTL +1.4%, GSVC +1.3%.

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance:  FXCM -20.3%, VMEM -17.6%, MED -8.9%, RUN -8.1%, ZUMZ -8.1%, LOCO -5.9%, GST -3.9% (to suspend the payment of cash dividends on its preferred equity commencing April 2016), EVLV -3.5%, BDSI -2.9%, TROV -2.3%, GNK -2.1%.

Companies trading lower in after hours in reaction to news: QUIK -20.5% (proposed public offering of common stock for an undisclosed amount), IMMY -6.6% (announced proposed public offering of common stock; size not disclosed), BCEI -5.0% (elected to draw down $209 million on its credit facility).

>>> Colgate-Palmolive Board approves implementation of the expanded restructurin

--> CL

Colgate-Palmolive Board approves implementation of the expanded restructuring program  

* Colgate-Palmolive increases quarterly dividend to $0.39/share from $0.38/share
* The initiatives under the expanded, previously disclosed Restructuring Program continue to be focused on the following areas:
- Expanding Commercial Hubs, Extending Shared Business Services and Streamlining Global Functions, Optimizing Global Supply Chain and Facilities
- As a result of the expansion, cumulative pretax charges related to the 2012 Restructuring Program, once all phases are approved and implemented, are now estimated to be $1,405 million to $1,585 million ($1,050 million to $1,170 million aftertax), increased from $1,285 million to $1,435 million ($950 million to $1,050 million aftertax). It is now expected that substantially all charges related to the 2012 Restructuring Program will be incurred by December 31, 2017.
- These pretax charges are currently estimated to be comprised of the following: employee-related costs, including severance, pension and other termination benefits (50%); asset-related costs, primarily incremental depreciation and asset impairments (10%); and other charges, which include contract termination costs, consisting primarily of implementation-related charges resulting directly from exit activities (20%) and the implementation of new strategies (20%). Over the course of the Restructuring Program, it is currently estimated that approximately 75% of the charges will result in cash expenditures.
- It is expected that, when it has been fully implemented, the Restructuring Program will have contributed a net reduction of approximately 3,300-3,800 positions from the Company's global employee workforce.