>>> Street Pre-Market Indications

CS
Airbus M/P Sale of Airbus’s defense assets approved, Handelsblatt
Card Factory UNCH LFL store sales growth of +2.8%, outlook unchanged
Crest Nic UNCH Revs 804.8mln vs cons 795mln, commentary upbeat
De Longhi M/P Q4 revenues 1% light
Deut Post -3% CS double downgrade to UNDERPERFORM (Currency & Amazon)
Dixons +1-2% Reports Q3 LFL sales +5% (est +3), record Black Friday
Easyjet -1-2% 1Q Rev. Misses Est.; Sees FY Profit In Line W/Mkt View
Gea Group M/P NZ milk powder price dropped 1%, second decline in a row
Gerry Weber +1% Sales and EBITDA slightly better
Greencore M/P LFL in convenience foods +7.7%, good start to the year
Huber&Suhner M/P FY revenues inline, orders inline, confirms guidance
ICP M/P 9M inflows of Eu4.7b (H1 Eu3.2b), AuM increased by 5%
Marstons UNCH 16 week LFL +3%, Christmas was good
Miners -2-3% Copper +0.50%, Brent -4.90%, Iron Ore +0.30%, China -6.50%
Morphosys UNCH Payment from Bayer for initiation of a global phase 2 study
Oils +1% Brent -4.9% to $29.45, WTI -4.25% to $29.45
Philips +1-2% 6% EBITA beat, Margin guidance inline
PZ Cussons -1% Revs 385.9mln vs cons 387.6mln, Nigeria tough, Europe ok
Richemont UNCH Swiss watch export data looks better, Dec -3.8%, Nov -6%
SFS M/P Sales slightly light, EBIT margin guidance inline
Siemens +2-3% Orders 7% beat, revenues 3% beat, EBITA 7% beat
S Immo +1-2% Sees "significantly" higher 2015 EBIT and Net Income
Swatch UNCH Swiss watch export data looks better, Dec -3.8%, Nov -6%
Tornos M/P FY sales slightly light CHF164m vs cons 165m

Mainfirst:
*SIEMENS-Raises EPS guidance,Orders,Sales and Inds Bizz better.....+0.25%
*PHILIPS-Rev 7.1b(7.07),FCF 740m,lighting separation on track......+3%
*AIRBUS-Carlyle,KKR favoured for acq of defense elec unit-H/B......+0.5%
*RENAULT-Nissan to look for cost savings says Ghosen - Nikkei......+0.5%
*DPW-To expand parcel service to confront Amazon says CEO - Bild...-1%
*REPSOL-To sell part of piped Gas Unit for €136m,gain of €76m......U/C
*ACTELION-Gets Health Canada approval for Uptravi(selexipag).......+0.25%
*BAYER-Would look at acquisitions in Agro-Chemicals to grow bizz...+0.25%
*G/WEBER-Rev 920m(911),Ebit 79m(79),Margin 8.6%(8.7),looks ok......+1.3%
*ADP/BOUYGUES-May build new Tehran Airport Terminal says WSJ.......+0.5%
*MICHELIN-Tyre data out last night Europe and NA strong............+0.5%


Commerz:
BAYN –1.4% Would look at acquisitions on agro-chemicals
BMW –1.6% Recalls about 58,000 vehicles in Japan for air bag inflators
1COV –1.6% Baader starts with Sell – PT €27
DB1 -1.2% CEO says seize low rates to spur growth
DPW –2.7% To expand parcel service to confront Amazon
GWI1 +3.2% Prelims and biz re-organisation as reaction on disappointing results
HNR1 –1.8% Mediobanca raises to Outperform (Underperform) – PT €117
JEN –2.8% Sees 2016 moderate organic sales, results growth
MOR +2.5% Gets milestone payment (est. €2-3mn) from Bayer Anetumab
MTX +1.4% GS raises to Buy (Neutral) – PT €105 (102)
RHM –1.9% Airbus electronic price rumored at €1.3bn
SIE +3.3% Strong Q1 results and increased FY guidance slightly
SRT3 +0.2% Berenberg raises to Buy (Hold) – PT €250 (200)
TEG -1.2% Good 2015 with vacancy down (7.5% after 9%) and rental up 3.3%
TKA –1.5% Cut to Hold (Buy) at Lampe – PT €16 (23)
VNA –1.5% Cuts shareholder acceptance threshold to 50% in bid for DWNI

(CS) Italian Banks : UCG & ISP : Adjusting numbers ahead of Q415 results

Adjusting numbers ahead of Q415 results
In this note we are cutting our earnings estimates by 6-7% for ISP and 10-
12% for UCG in 2016-17 as we incorporate lower interest rates, an increasingly
competitive environment and, in the case of UCG, lower currencies, the Polish
levy and generally more conservative Turkish, Polish and Russian earnings.
We expect a rather weak set of Q4 results, with the quarter impacted by the
contribution to the bail out of the 4 small banks (€380n for ISP, €200mn for
UCG), seasonally higher costs and provisions and, in the case of UCG the c.
€200mn loss on the sale of Ukraine, c. €0.8bn of restructuring charges and the
unwinding of the Austrian pension funds (capital neutral).
■ We maintain our Outperform stance on ISP - with a new TP of €3.3/sh
(from €3.7/sh) we are still expecting the bank to overdeliver on its dividend
commitments for the year (we estimate €2.5bn payment (€0.15 DPS) vs. the
€2bn (€0.12 DPS) commitment) and maintain a 12.5-12.8% FL CET 1 ratio.
Earnings wise, we remain below management's guidance on fees (5%YoY
in 2016 vs. double digit guidance), assume NII declines for 2016E (-1%YoY)
and incorporate no additional cost efforts into 2016-17E (+2% CAGR) – with
the gradual reduction of LLPs (to 65bps from 85bps in 2015) standing as the
main driver of improving profitability levels (9% in 2016 from 8% in 2015).
■ On UCG, we maintain our Neutral stance - We see the bank's valuation
penalized by the comparatively lower FL CET 1 levels (10.5% as of Q3), the
volatility of its CEE exposures and by management's lack of credibility in the
market. We await for signs of "execution" and delivery of the business plan
targets, but do not anticipate anything tangible before Q1 results (10th of
May). Our new TP of €4.6/sh (from €5.8/sh) is based on the capital adjusted
RoTBV levels (7.2% in 2017E) and incorporates a capital shortfall of €2.7bn
(€0.45/sh) which is partly offset by the dividend forecasts for 2015-16
(€0.26/sh). Earnings wise, our numbers stand c. €1bn below 2018's targets
(on lower revenues) – with a stable NII, 6%YoY fee growth and with the
gradual implementation of cost strategies (-3%YoY in 2016E) and LLP
declines (from 76bps in 15E to 67 in 16E) explaining most of the profitability
uplift (from 5% to 6% in 2016E).

(Exane) Cap. Goods : The Second act is always the darkest

Downgrade GKN to Underperform; upgrade IMI to Neutral
US automotive production is approaching the peak and questions about the timing of an end to
Chinese tax incentives will continue to build; we therefore downgrade GKN to Underperform
from Outperform. We upgrade IMI to Neutral from Underperform. For the past two years, we have
consistently forecast IMI earnings to come in materially below Consensus. As we enter 2016 we no
longer forecast a significant earnings disappointment. While IMI’s valuation still looks expensive,
the lack of an earnings catalyst to drive further underperformance leads us to upgrade the name.

>>> Italian Banks

POP MILANO / BMPS Reuters reports that the CEO of Pop Milano Mr Castagna has ruled out a three way merger involving BMPS.

POP MILANO / BCO POPOLARE MF reports that the banks are continuing discussions concerning an eventual exchange ratio and that a merger would be framed as a merger of equals. Idea is to have a board of 19 members (9 nominated by Bco Pop and 7 by Pop Milano with 3 independents).

BCA POP EMILIA ROMAGNIA Il Messagero reports that BPER could have made an offer to buy assets of the small local banks currently under administration.

BAD BANK Il Sole reports that the main issue (to be discussed at the meeting today between the Italian Economy minister and European Competition commissioner) is the provision of guarantees and that a hypothesis that could be discussed is the conferral of NPL’s to a SPV that in turn would issue a category of bonds.

(GS) Integrated Oils: 4Q15: Oil weak, refining margins lower; focus on costs and

4Q15: Oil weak, refining margins lower; focus on costs and cash

TOTAL our preferred stock; we would avoid Statoil and OMV
Our top picks remain Total (CL-Buy) and ENI (Buy), for which we see attractive volume and cash flow growth, combined with restructuring at ENI and further cost cutting potential at Total. We remain more negative on Statoil (CL-Sell) owing to its high exposure to oil prices/European gas prices and high leverage, which leaves the dividend at risk, in our view. We are also Sell-rated on OMV after recent strong outperformance, as we see risks around downstream earnings, high leverage and a relatively high decline upstream portfolio.

(Exane) MidCap Stop Picking for 2016

Stock-picking for 2016
Our strategists have recently reinforced the defensive bias in the equity portfolio. Sector allocation
is skewed to the most obvious beneficiaries of ECB policy and low euro-area yields. Our top picks
offer 1) high exposure to Europe with some self-help (Europcar), 2) a play on the improvement in
the French construction sector (Eiffage), 3) a haven with a boost from collapsing oil prices (Rubis),
4) a secular growth story (Showroomprive) and 5) a value play that has re-based market
expectations and benefits from speculative appeal (Saft). On the negative side, we would avoid
Gemalto and Vallourec.

(GS) Aerospace & defense : 2016 outlook: Moving towards convergence

2016 outlook: Moving towards convergence

Safran still CL-Buy; Thales to Neutral, MTU to Buy, Qinetiq to Sell
Safran (CL-Buy) remains our top pick in European A&D. We remove Thales from the Conviction List and downgrade it from Buy to Neutral following outperformance. We upgrade MTU Aero Engines to Buy and downgrade Qinetiq to Sell (both from Neutral). We reiterate our Buy ratings on BAE Systems, Dassault Aviation and Rolls-Royce, and remain Neutral-rated on Airbus, Cobham, Finmeccanica, Meggitt, Saab and Ultra Electronics. We update our estimates and price targets across our coverage to reflect FX moves and recent company developments. Our price targets are flat on average, falling by 3% for the aerospace stocks and rising by 3% for the defence stocks.

>>> What to look at today - 26th of January 2016

Dow-1.29% S&P-1.56% Nasdaq-1.58% Russell-2.28% VIX 24.11 (+7.88%)
US Market closed lower again pushed by Oil & pressure on the financial sector. WTI -5.8% closing @ $30.34. energy sector (-4.5%) was the worst-performing sector today and was followed by the materials (-3.3%) and financials (-2.3%) sectors. The telecom services (-0.3%), consumer staples (-0.8%), and utilities (-0.9%) sectors exhibited relative strength but still finished lower for the day. Today's participation was lighter than the recent trend with only one billion shares changing hands on the NYSE floor ahead of an heavy day of reporting tomorrow. US After Hours RMBS +7.1%, SWFT +4.8%, CR -4.3% following earnings/guidance, PETX+12.9% on New Drug filing, RLYP+10% on Phase1 LULU +1.8% on 5% stake. Asian equities are back in the red, tracking the final hour selloff on Wall St, as oil prices erased their Friday bounce to fall some 7% back below $30. Concern with oversupply in the energy space resurfaced as OPEC Sec Gen blamed non-members, while Iraq output hit record highs. The cloud of falling oil and the potential turmoil it creates in high-yield debt and emerging markets overshadowed 3-year high liquidity injection by the PBoC, which pumped in some CNY440B in 7 and 28 day repos. Chinese central bank also set Yuan higher for the 12th straight day, seeking to diminish concerns over outflows from the mainland, even as PBoC official Zhang reiterated there were no plans to lower RRR for the time being. in Japan, market is waiting for BOJ Decision on Friday. Econ Min Amari said he did not believe the BOJ will be as dovish in its intentions as ECB's Draghi, though he reiterated confidence in Kuroda to take appropriate measures. Hynix noted Q1 memory market demand would be uncertain amid seasonal weakness, but DRAM demand for PCs would improve in H2. Samsung SDI-13.4% on Q4 numbers.
--> WTI$ 29.48 -2.85%

Nikkei-2.35% Hang Seng -2.33% Shanghai -6.31%

Eur$ 1.0856 CNH 6.6196 CNY 6.5797 JPY 117.83 GBP 1.4214 CHF1.0127 RUB $81.38 WTI $29.48 (-2.82%)

S&P-0.48% EuroStoxx-1.54% Dax-1.38% SMI-0.81%

Macro :
- EU Regulators Said to Fine Japan Car Accelerator Cartel: Reuters
- Nexstar Said to Be Close to $2.3b Deal for Media General: NYP

Keep an eye on :
- ATLN VX : Actelion Gets Health Canada Approval for Uptravi
- AIR FP : Carlyle, KKR Favored for Acquisition Airbus Unit: Handelsblatt
- AIR FP : Airbus Defense Unit Sale Gets Green Light: Handelsblatt
- MT NA : ArcelorMittal Mothballs Steel Plant in Sestao, Spain: Telegraph
- BPE IM : Pop. Emilia Romagna Made Expression of Interest for Ferrara: MF
- BAYN GY : Bayer Would Look at Acquisitions in Agro-Chemicals: Handelsblatt
- BMW GY : BMW Recalls About 58,000 Vehicles in Japan for Air Bag Inflators
- DLG IM : De’Longhi 2015 Rev. Up About 9.5% to EU1.89b
- DB1 GY : Deutsche Boerse CEO Says Seize Low Rates to Spur Growth
- GWI1 GY : Gerry Weber FY15 Sales Rise 8%; Launches Program to Realign Co.
- GSK LN : Glaxo Studying Use of Vaccine Technology for Zika: Reuters
- HOME LN : Qatar May Back 170p Sainsbury Bid For Home Retail, Guardian Says
- ILD FP : Iliad Said to Approach Ofcom About Potential U.K. Entry: FT
- ITP FP : Interparfums Says 4Q Trading Slightly Above Expectations
- PHIA NA : Philips Sees Lumileds Valuation Concerns, Deal May Happen in 2H
- RNO FP : Nissan, Renault to Look for Cost Savings, Ghosn Says: Nikkei
- REP SM : Repsol to Sell Piped Gas Assets for EU136M
- SBRY LN : Qatar May Back 170p Sainsbury Bid For Home Retail, Guardian Says
- SIE GY : Siemens 1Q Order Rise 27% to EU22.8b
- SIE GY : Siemens 1Q Beat, Guidance Pleasant Surprise, Morgan Stanley Says
- SUNE US : SunEdison Holder Greenlight Held Talks; Reports 6.8% Stake 13D
- VOW3 GY : VW CEO Says Industry Must Rework Emission Tests Procedures

>>> Europe : Brokers Upgrades & Downgrades - 26th of January 201

>>> Up
*AIR FRANCE-KLM RAISED TO BUY VS NEUTRAL AT CITI
*ASTRAZENECA RAISED TO BUY VS NEUTRAL AT ODDO
*CARLSBERG RAISED TO OUTPERFORM AT RBC CAPITAL
*HANNOVER RE RAISED TO OUTPERFORM VS UNDERPERFORM AT MEDIOBANCA
*HOCHSCHILD MINING RAISED TO BUY VS NEUTRAL AT UBS
*JYSKE BANK RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*LAMPRELL RAISED TO HOLD AT HSBC
*MEKONOMEN RAISED TO BUY AT NORDEA
*MTU AERO RAISED TO BUY VS NEUTRAL AT GOLDMAN (Note Attached)
*RBS GROUP RAISED TO BUY VS NEUTRAL AT UBS
*SALLY BEAUTY RAISED TO OUTPERFORM AT OPPENHEIMER
*SCOR RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA
*TRYG RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA
*VODAFONE RAISED TO BUY VS HOLD AT JEFFERIES
*WOOD GROUP RAISED TO BUY AT HSBC
*ZURICH INSURANCE RAISED TO OUTPERFORM VS NEUTRAL AT MEDIOBANCA

>>> Down
*AKER SOLUTIONS ASA CUT TO HOLD AT HSBC
*AMEC FOSTER WHEELER PLC CUT TO HOLD AT HSBC
*CORE LABORATORIES N.V. CUT TO REDUCE AT HSBC
*DAIMLER CUT TO HOLD VS BUY AT HSBC
*DEUTSCHE POST DHL CUT TO UNDERPERFORM AT CREDIT SUISSE
*ELECTROMAGNETIC GEOSERVI CUT TO SELL AT NORDEA
*GJENSIDIGE CUT TO UNDERPERFORM VS NEUTRAL AT MEDIOBANCA
*HALLIBURTON CUT TO HOLD AT HSBC
*QINETIQ CUT TO SELL VS NEUTRAL AT GOLDMAN
*MUNICH RE CUT TO NEUTRAL VS OUTPERFORM AT MEDIOBANCA
*NOVO NORDISK CUT TO NEUTRAL VS BUY AT ODDO
*SAMPO CUT TO UNDERPERFORM VS OUTPERFORM AT MEDIOBANCA
*SCHOELLER-BLECKMANN CUT TO REDUCE AT HSBC
*STRATASYS LTD CUT TO NEUTRAL AT JPMORGAN
*SUBSEA 7 CUT TO REDUCE AT HSBC
*THALES CUT TO NEUTRAL, OFF PAN-EUROPE CONVICTION LIST: GOLDMAN
*THYSSENKRUPP CUT TO HOLD VS BUY AT BANKHAUS LAMPE
*WEIR GROUP CUT TO UNDERPERFORM VS HOLD AT JEFFERIES

>>> PT Change


>>> Initiation
*PGS RATED NEW BUY AT HSBC, PT NOK30

>>> Call

>>> US After Hours Summary: RMBS +7.1%, SWFT +4.8%, CR -4.3%

After Hours Summary: RMBS +7.1%, SWFT +4.8%, CR -4.3% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance:  RMBS +7.1%, SWFT +4.8%, PRK +1.4%

Companies trading higher in after hours in reaction to news:  PETX +12.9% (filed an administrative New Animal Drug Application with the FDA's Center for Veterinary Medicine for Galliprant for the control of pain and inflammation in dogs with osteoarthritis), RLYP +10.1% (reported results from Phase 1 in vivo studies evaluating potential drug-drug interactions between Veltassa and 12 drugs), LULU +1.8% (Lone Pine Capital disclosed 5.0% passive stake).

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance:  CR -4.3%, PKG -1.4%

Companies trading lower in after hours in reaction to news:  ROYT -4.5% (announced there will be no cash distribution to the holders of its units for February), CNC -1.9% ( reported internal search of information technology assets).