>>> EU Official: Greek privatization fund is needed to finish the review; countr

EU Official: Greek privatization fund is needed to finish the review; country still needs to pass legislation to set up the fund Recent comments on Greece negotiations with creditors:
- EU said to note that Greece had no funding needs until June, creditors had not determined the fiscal gap for 2016 
- On Feb 8th First round of talks between Greek govt and heads of creditors representatives ended on Feb. 5th with all major issues still open

>>> XPO Logistics decides to retain the truckload business it acquired through t

XPO Logistics decides to retain the truckload business it acquired through the Con-way acquisition as part of its integrated supply chain offering
XPO Logistics disclosed in a regulatory filing that it has completed its evaluation of strategic opportunities to divest the truckload business it acquired through the Con-way Inc. acquisition on October 30, 2015. The Company has decided to retain the truckload business as part of its integrated supply chain offering. In deciding to retain this business, the Company considered the value that shippers place on owned truckload capacity, particularly in U.S.-Mexico cross-border lanes, and the opportunity to improve the utilization of the assets.

>>> Street Pre-Market Indications

ML
* ASCENTIAL - First day of trading post IPO, priced at 200p, ASCL LN.........
ACTELION - Q4 in line, 2016 guidance implies 10-11% cons u/gs on generics.+3%
YNAP - FY sales 2% ahead of cons, key metrics solid & NaP outperforms.....+2%
COM HEM - Q4 revs broadly in line, as is u/lying EBITDA, reits guide......+1%
SANOFI - EPS a small beat and Lantus sales ahead of ests should reassure..+1%
KINNVEIK - We UPGRADE to BUY, sell off unjustified, PO to SEK 283.........+1%
TUI - Seasonal EBIT loss in line, reiterates FY16 EBIT growth targets...+0.5%
ICAP - Rev growth consistent with MLe, no material update on TLPR deal....u/c
D. BANK - Reassures on ability to pay AT1s, 5y CDS widest since '11 yday..u/c
REDROW - Demand for new homes robust, order book +51% YoY.................u/c
ENEL GREEN POWER - Headlines a touch light, all about Enel bid still......-1%
SECURITAS - Org growth solid but margin miss = EBITDA 3% below cons.......-2%
PMI IM - Headline beat on one-offs, CET1 and div in line but NII weaker.-2-3%
PANDORA - FY EBITDA in line, margin guidance light v cons,buyback smaller.-3%
TOMTOM - Q4 rev in line, FY EBITDA 2% ahead, sees increased investments...-3%
HANDELSBANKEN - PBT 3.4% miss, NII in line and div SEK 6 v 5.83 cons......-3%
SWEDBANK - Board asks CEO Wolfe to step down, clear surprise, initial -ve.-4%
OUTOTEC - adj EBITA 32% light and guide for FY16 EBITA c40m v 64m cons..-5-7%

MainFirst
*SANOFI-Sales 9.28b(9.38),Div 2.93(3),EPS 1.31(1.28),Pharma -4.7%......-1%
*LAFARGEHOLCIM-Receives revised CCI divestment order 4 India...........U/C
*DBK-Says it can pay debts,lender due 2 pay €350m in April.............-2%
*TUI-Sales 3.72b(3.68),Reits o/lk,takes 41.6m charge Hapag-Lloyd.......+1%
*ACTELION-OP 656m(650),NI 552m(548),Rev 2.05b(2.04),Div 1.5(1.4).......+2%
*HANDELSBANKEN-NII 6.97b(6.81),NI 4.5b(4.6),NLL 475m(455)..............+2%
*SWATCH-Swatch and Safilo sign a 5yr cooperation(Swatch Glasses).......U/C
*SCOR-Reinsurance mkt shows signs of levelling out,2016 G/Prem €6bln...-0.5%
*WILLIAM DEMANT/SONOVA-Looking at AudioNova worth €500m................-0.5%
*BCO POP MILANO-Net 86.9m(65),Strong vol grth,CET1 12.2%...............+3%
*TOMTOM-Rev 282m(280),Ebit 0.2m(10.4),EPS 21c(20),Ebitda 123.7m(121)...-2%
*FRAPORT-Negative read across from TUI,Antalya 15% of valuation........-3%
*PANDORA-Ebitda 6.21b(6.21),Net 3.67b(3.87),2016 Rev 19b+(19.9)........-1%
*SECURITAS-Net 668.6m(717),Sales 21b(20.8),Divi 3.5(3.3),EPS 1.84(1.98)-2%
*WIRECARD-Not able to proceed online payments since Saturday...........-3%
*YOOK NET-A-PORTER-Group 2015 Pro-Forma Rev €1.7b,Net Rev +31%.........+3%
*OUTOTEC-Sales 306m(348),sees 2016 sales at €1bln to €1.2bln...........-5%

CSFB
Actelion -1% Sales in-line, core EBIT 4% ahead, core EPS 6.4% ahead
Anglos +1% Kumba numbers better, Kumba makes up 20% of Anglos
Com Hem +2% Revs and EBITDA broadly in line, EBITDA growth accelerated
Deut Bank +1-2% Distributable items are falling so still able to pay coupon
ICAP UNCH Numbers inline, No new news on Tullets merger
Miners M/P Copper +0.30%, Brent -2.90%, Iron Ore Closed, China Closed
Outotec -2-3% Q4 net sales €306m vs cons 348m, FY sales also light
Pandora -1-2% FY net and outlook slightly light, div better, new buyback
Redrow -2-3% H1 revenues 7% miss, operating profit 8% miss, PTP 3% miss
Sanoma UNCH Q4 sales €408m vs cons 415.8m, new credit facility
Sanofi M/P 4Q EPS Beats, Sales Miss; Sees 2016 EPS Broadly Stable
Securitas -2-3% Org growth 7% is good but EBITA number 3% light
SHB UNCH Numbers miss by 4%, NII better, SEK1.5/shr special divi
Solvay +1% CS reinstate with OUTPERFORM (Cytec and volume growth)
Swedbank -2-3% Mr Wolf will step down as President and CEO
TomTom -2-3% Q4 revenues 1% beat, outlook weaker
TUI -2-4% 1Q underlying EBITA loss of 97.3mln vs CS at 87mln
UK retail UNCH UK BRC sales climbed 2.6% y/y in Jan vs previous ok +0.1%
Yoox +1% Revenues +31% to EU1.67b est EU1.64, +21% on LFL basis

Shore
TUI - current winter trading inline,revs +5.4%,EBITDA +7.2%,reits guidance...+1%
TUNGSTEN - trading inline,EBITDA loss of no more than £15m breakeven by 2017.+1%
CAMBIAN - revised EBITDA target misses due to weakness in cost management....-5%
ALLIED MINDS - revs $3.2m vs $7.7m,rev shortfall at RF Biocidics.............-2%
REDROW - H1 revs +8% to 603m.Int divi 4p.Confident statement................UNCH
ICAP - Revs for Q3 5% lower.Market conditions remained challenging...........-4%
SOPHOS - Q3 trading strengthens,reaffirms previously upgraded outlook........+1%
ASSURA - rent roll +1.4% £61.8m, acquisition opportunities rise to £135m...UNCH

(GS) Europe : Banks : Ample liquidity, more capital reduce “crisis re-run” risk;

Ample liquidity, more capital reduce “crisis re-run” risk; P&L trends soften

Risk of liquidity event? Limited, in our view
Many are asking “crisis” questions: “is there risk of a financial crisis re-run” and “can a large European bank face a liquidity event”? With market confidence fast deteriorating we note:
(1) Liquidity: banks are long: ECB liquidity usage is down €700 bn from 2012 peak; and TLTRO remains barely used.
(2) Money markets open: so far there is no evidence of strain in € or US$ funding. Key indicators (EURIBOR – OIS; cross-currency basis) are barely impacted by share price volatility.
(3) Solid deposit picture: customer deposit growth is adding to liquidity positions further. 2015 in general, and Dec-15 in particular, were strong inflow months (especially in Italy, Greece).
(4) ECB backstops: all to fail, “crisis backstops” remain in place, on a full allotment / fixed rate basis for € (MRO, LTRO, TLTRO and ELA) and US$, at the ECB.
(5) Capitalization higher: External cap hikes ~€800 bn (since crisis start), further aided by retained profits, deleveraging, disposals.

P&L outlook softer, due to known drivers:
(1) weak revenue trends (NIM compression, low loan growth), (2) a worsening credit quality outlook, (3) falling ability to cut costs. None of this is new, and 4Q15 results (see: The aggregate picture, published today) will not result in profit revisions that would justify the share price moves, in our view.

Liquidity of markets, across asset classes, lower
Whilst banks’ balance sheet liquidity is high, market liquidity – across all asset classes – has reduced. Banks inventory plays a role – the 4 European IBs alone have cut inventory by >US$2 tn over the past 4 years. Less liquid markets act as volatility amplifiers – meaningfully so.

Highlighting BNP: our large cap pick in EZ
We recently added BNP, a Euro large cap, to the CL-Buy, and we highlight it here due to: (1) “selfhelp” potential (US disposal options), (2) solid 4Q15 (capital up 20bp Q/Q), (3) TBPVS growth (+8% y/y), (4) negative NPL formation (-2% q/q), (5) attractive valuation (0.6x P/TBV; 6% div yield).

>>> Eurasia Drilling minority shareholders led by UCP file lawsuit over buyback

Eurasia Drilling minority shareholders led by UCP file lawsuit over buyback price 

A group of minority shareholders of Eurasia Drilling Company (EDC), led by United Capital Partners (UCP), a fund of Ilya Shcherbovich, has filed a lawsuit against the oil services company in the Cayman Islands court, reported Kommersant.

The Russian daily cited sources familiar with the situation noting that on 3 February, UCP and several other investment funds had filed a lawsuit in the Supreme Court of the Cayman Islands, requesting to review the price of the share buyback.

The minority shareholders are not satisfied with the price at which the management of EDC acquired the entire free-float of the company at the end of last year. The minority shareholders were offered USD 11.75 per GDR, the item reported. The price that is unsatisfactory to UCP is significantly less than a price offered in the failed deal with oil services group Schlumberger, which was USD 22 per GDR.

Kommersant has estimated that if the minority shareholders win the court suit, the additional costs of EDC could amount to about USD 335m.

UCP and EDC declined to comment, said the report.

UCP owns a 1.8% stake in EDC. The main shareholders in EDC are General Director Alexander Djaparidze (30.2%), Alexander Putilov (22.4%), while about 3% is owned by Lukoil’s head Vagit Alekperov.

In 2014, EDC posted USD 3bn revenue and a USD 421m net profit, Kommersant reported.

Kommersant

>>> What to look at today - 9th of February 2016

Dow-1.10% S&P-1.42% Nasdaq-1.82% Russell-1.64% VIX 26.10 (+11.64%)
US Market start the week on a weak note but bounce back from lows on the last hour. slowing global growth, a decline in oil, and the ability to sustain further fed funds rate hikes. Trade saw a flight from risk assets to safe-haven investments amid growing uncertainty. European banks were under pressure with DB -8% and balance sheet concerns but the bank came with a press release saying it has roughly EUR1 billion in 2016 payment capacity, enough to pay EUR350 million in Tier 1 coupons that will mature in April. WTI crude settled lower by 3.8% at $29.94/bbl. Gold extended its 2016 gain to 6.7% (+3.5% today) amid growing fears that the Fed may have committed a policy error. materials sector -2.7%, financials -2.6%, consumer discretionary -2.0%, telecom services -0.4% and consumer staples -0.3%, Tech -1.6%, IBB-1.4%. Volume still above 1bil shares. US After Hours OI +4.5%, GPS +2.8%, PSDV -9.1%, QLYS -6.7%, FOXA -2.5%, ONVO -2.1%. Asia is trading lower, Nikkei -5.4% on JPY trading to 15month low of 114.20. Japan Econ Min Ishihara continued to attribute recent gains in JPY to "external factors" while cheering the progress being made on the rate of inflation, adding the decision by the BOJ shows determination to end deflation. other reports were more skeptical of the BOJ decision to engineer recovery, and the associated risks of dislocation in govt fixed income and negative impact on the overall financial system are prevailing in Japan's trading sentiment today.

Nikkei -5.40% Hang Seng closed Shanghai Closed

Eur$1.1197 CNH 6.5777 CNY 6.5743 JPY 114.85 GBP 1.4411 CHF 0.9850 RUB$ 78.9306 WTI$29.94 (+0.81%)

S&P -0.78% EuroStoxx-0.35% Dax-0.40% SMI-0.13%

Macro :
- North America Oil Producers Need to Cut $24B in Spending: IHS
- ECB’s Coeure Says Euro Area Banks Are Stronger Now Than in 2012
- Goldman Says Oil Price Due to High Supply, Not Growth Lack: HB
- The $102 Billion of Bank Debt That’s Making Investors Nervous

Keep an eye on :
- AB1 GY : German Cockpit Union Says in Talks With Air Berlin Over Wages
- AIR FP : Embraer Said to Win Alaska Air Order for Up to 60 Jets: WSJ
- AIR FP : UN Group Agrees to First Emission Standards for Planes: Reuters(-35% by 2020), White House Says Carbon Rules Could Hit Existing Planes
- ALO FP : French Govt Says Bouygues Loan of 20% Alstom Stake Takes Effect
- POP IM : Banca Pop. Milano 4Q Net EU86.9m, Est. EU65m
- PMI IM : Pop. Milano NII Miss Disappointing, Asset Quality Improving: KBW
- BKG LN : Funds Short Berkeley to Bet Against London High-End Market: FT
- COMH SS : Com Hem 4Q Underlying Ebitda Beats Ests.
- DBK GY : Deutsche Bank: 2016, 2017 Payment Capacity Addtl Tier 1 Coupons
- EGPW IM : Enel Green Power 2015 Total Rev EU3b; Net Debt at Yr End EU6.9b
- FIS1V FH : Fiskars 4Q Sales Miss Ests.; Profit Seen Increasing in 2016
- G IM : Generali May Name Chairman Galateri as Interim CEO Today: Sole
- HEN3 GY : Outgoing Henkel CEO Rorsted Says M&A Key to Plans: Handelsblatt
- LHN VX : LafargeHolcim Receives Revised CCI Divestment Order
- SAA1V FH : Sanoma 4Q Sales Miss Ests; Proposes Dividend EU0.1/Share
- SAN FP : Sanofi 4Q EPS Beats, Sales Miss; Sees 2016 EPS Broadly Stable
- SHBA SS : Handelsbanken 4Q Net Income Misses Est.
- SKBN NO : Skandiabanken 4Q Net Income Rises; Annual Lending Growth 11.4%
- SWEDA SS : Swedbank CEO Wolf’s Departure Is ‘Bad News,’ KBW Says
- TOM2 NA : TomTom 4Q Rev. In Line, Ebit Misses Ests.; Sees More Investments
- YOOX IM : Yoox Net-A-Porter 2015 Pro-Forma Rev. Up 31%