>>> XChanging (XCH LN) : CSC acquires 24.7M shares at 5p each (10% of shares, ra

CSC acquires 24.7M shares at 5p each (10% of shares, raises take to 57.1% in company) 
CSC Computer Sciences International Operations Limited ("CSC Bidco"), a wholly owned subsidiary of Computer Sciences Corporation ("CSC"), announces that pursuant to a sale and purchase agreement dated 22 December 2015 (the "Sale and Purchase Agreement") it has acquired 24,760,355 ordinary shares of 5 pence each in Xchanging plc ("Xchanging"), representing 9.99 per cent. of the existing ordinary share capital of Xchanging, from Capita plc at a price of 190 pence per Xchanging Share.

In aggregate, CSC Bidco has received irrevocable undertakings, other commitments and a letter of intent to accept its recommended cash offer for the entire issued and to be issued ordinary share capital of Xchanging (the "Offer") in respect of a total of 116,663,891 Xchanging Shares, representing approximately 47.07 per cent. of the existing ordinary share capital of Xchanging in issue on 22 December 2015 (being the latest practicable date prior to this announcement).

Following the acquisition of the 9.99 per cent. shareholding in Xchanging, CSC Bidco holds shares in, and has irrevocable undertakings, other commitments and a letter of intent to accept the Offer in respect of, a total of 141,424,246 Xchanging Shares, representing approximately 57.06 per cent. of the existing ordinary share capital of Xchanging in issue on 22 December 2015 (being the latest practicable date prior to this announcement).

>>> Premier Oil : Update Debt & Project

Completes sale of Premier Oil Norge AS to Det Norske Oljeselskap ASA for a net cash consideration of $120M; Issues operational update on Solan Commissioning and Falkland Island drilling 

* Norway sale
Premier is pleased to report that, further to the announcement made on 16 November 2015, the disposal of Premier Oil Norge AS to Det norske oljeselskap ASA for a net cash consideration of $120 million, has now completed. As a result net debt is expected to be just under $2.3 billion at year end. Premier continues to enjoy significant liquidity with $1.2 billion of cash and undrawn credit facilities and covenant headroom is expected to be in excess of $800 million at the year end.

* Solan Commissioning
On the Solan field, progress has been made on the commissioning of the offshore installation systems required for first oil. Since our trading update on 15 November, tanker trials have been successfully completed and commissioning work has continued using the Superior flotel. As previously stated, the timing of the start-up of first oil is dependent on weather conditions; after a favourable weather period for much of September and October, the West of Shetlands area experienced an unprecedented number of different storm fronts during November and early December. This resulted in poor bridge connectivity between the flotel and the Solan platform and a number of lost days. We are continuing to reduce the number of hours required to reach first oil, however we now expect first oil to be in January.

* Falkland Island Drilling
Drilling operations in the Isobel-Elaine area of the North Falklands basin are ongoing. The Isobel Deep re-drill well is drilling ahead with results expected early in the New Year.

NY Post : Nexstar nears $2B deal to acquire Media General

Nexstar Broadcasting, the owner of 106 TV stations reaching 17 percent of US households, is nearing a better-than-$2 billion deal to acquire rival Media General, The Post has learned.

“The gap has closed and they are getting closer,” two sources close to the situation said Tuesday.

On Dec. 9, Media General announced that its board had unanimously rejected Nexstar’s $16.31-per-share offer. Media General asked Nexstar for more than $18 per share.

The sides have both shown a willingness to compromise, sources said.

Media General shares Tuesday rose 1.4 percent, to $15.50, indicating the market is unsure a deal will be struck.

For station owners, getting larger is important at a time when cable television industry giants are merging. Greater size gives the stations more leverage in negotiating retransmission fees.

Nexstar is not the only party pursuing Media General. Meredith Corp. is also in the mix. If Media General recommends a Nexstar offer, Meredith will have four business days to match the offer.

Media General and Nexstar declined comment.

>>> What to look at today - 23rd of December 2015

Dow+0.96% S&P+0.88% Nasdaq+0.65% Russell+0.88%
US Market closed higher, returned above its 100d MA. Volume were light at 850mil shares. Energy +1.2% with Crude trading 1% higher, Commo +1%, materials+1.2%. Tech underperformed (-0.7%)m with AAPL lower. US After Hours NKE +1.4%, BBBY-6% MU -5.9%, CAMP -3.8% following earnings/guidance, GALE -6.1% on subpoena, CELG+7.1% on settlement of litigation. Broader Asian markets noticeably more positive, following the stronger lead from US data. Oil prices saw buying, with WTI rising above Brent, the first time since a short period in Nov 2014. Excluding Nov 2014 WTI has traded at a discount to Brent since 2010. Volume remained light in the region with Japan closed for holiday and several markets to be closed later in the week. 3 IPOS in Shenzhen rose to their limits, trading well above initial IPO pricing. China continues to draw attention to plans to accelerate IPOs in 2016. Miners in Australia (BHP, +3.5%; RIO +4.9%) were supported by firmer iron ore prices.China NDRC Chairman Xu Shaoshi in an interview noted that China may face more severe economic situation next year. China is facing relatively large downward pressures including Fed rate hike and a fragile economic recovery.

Nikkei Closed Hang Seng+1.05% Shanghai +0.11%

Eur$ 1.0939 CNY 6.4767 JPY 120.91 GBP 1.4852 CHF 0.9888 RUB$ 71.1532 WTI $36.48

S&P-0.14% EuroStoxx +0.94% Dax +0.99% SMI +0.70%


Macro :
- Extreme Oil Bears Bet on $25, $20 and Even $15 a Barrel in 2016
- China’s Earliest Economic Indicators Show Signs of Stabilization
- U.S. Proposes 256% Tax on Some China Steel Imports, Nucor Says
- Pentagon to Finish Proposal for Merger Rules in Weeks: Reuters
- Germany to Take Action Against Booking Companies: Sueddeutsche (CTRP US, PCLN US, EXPE US, TRIP US)
- Foursquare Said to Have Talked With Potential Buyers: Re/code


Keep an eye on :
- ABG SM : Abengoa Creditors Agree on Terms for EU106m Loan
- AZN LN : AstraZeneca Gout Treatment Zurampic Wins FDA Approval
- BNP FP : BNP’s Italian Unit Sells Milan Headquarters to Qatar Investment
- ALCAR FP : Carmat Says 3rd Patient Implanted W/ Carmat Prosthesis Has Died
- DL NA : Delta Lloyd Sells Last Remains of Commercial Property Portfolio
- DTE GY : Dems Urge Germany to Probe T-Mobile’s Labor Practices: The Hill
- TMUS US : YouTube Says T-Mobile Interfering With Its Video Traffic: WSJ
- DIS US : Disney Said to Be in Talks to Exit Univision JV Fusion: FT
- HEN3 GY : Brazil Approval for Coty Deal Challenged by Henkel: Reuters
- NKE US : Nike Sees 3Q Sales Up as Much as Low Double Digit Percentage
- PAH3 GY : Porsche to Spend EU1b on Electric-Car Plant: Stuttgarter Z.
- PNL NA : PostNL to Start Paying Funding Obligation to PostNL Pension Fund
- SAN FP : Sanofi Submits New Drug Application With FDA for Insulin Mix
- SHP LN : Shire Said to Make New Baxalta Offer, Reuters Says
- SHP LN : Baxalta Eyes Alternatives to Takeover by Shire: FT
- GLE FP : Societe Generale Discloses Prudential Capital Requirements
- SREN VX : Swiss Re CEO Sees ‘Golden Days’ Ahead, Says Buffett ‘Wrong’: HB
- FR FP : Valeo Agrees to Buy Spheros From Deutsche Beteiligungs AG

>>> Asian Update

Asian Mid-session Update: Partial US Consumer Spending data released early; NZ narrows trade deficit, as oil prices rise

***Economic Data***
- (NZ) NEW ZEALAND NOV TRADE BALANCE (NZD): -0.78B V -0.81BE; Exports: 4.1B v 3.9Be; Imports: 4.9B v 4.8Be
- (MY) MALAYSIA NOV CPI Y/Y: 2.6% V 2.3%E
- (NZ) New Zealand Nov M3 Money Supply Y/Y: 8.4% v 7.7% prior
- (IN) India Nov Conference Board Leading Economic Index: -0.5% v +1.0% prior

***Index Snapshot (as of 04:30 GMT)***
- Nikkei225 closed, S&P/ASX +0.6%, Kospi +0.6%, Shanghai Composite +0.2%, Hang Seng +1.1%, Feb S&P500 -0.2% at 2,032

***Commodities/Fixed Income***
- Feb gold -0.1% at $1,072/oz, Feb crude oil +0.7% at $36.39/brl, Mar copper +0.4% at $2.11/lb
- (AR) Argentina Central Bank sells $299M in Lebac bonds with rates at 3.25-3.50%; Sells ARS28.6M in bonds with rates of 31-36%
- USD/CNY: (CN) PBoC sets yuan mid point at 6.4731 v 6.4746 prior
- USD/CNY: Offshore Yuan Hibor overnight fixing rises to record high at 9.45%
- USD/KRW: Onshore opens at KRW1,172 v KRW1,173 prior close

***Market Focal Points/FX***
Broader Asian markets noticeably more positive, following the stronger lead from US data. Oil prices saw buying, with WTI rising above Brent, the first time since a short period in Nov 2014. Excluding Nov 2014 WTI has traded at a discount to Brent since 2010. Volume remained light in the region with Japan closed for holiday and several markets to be closed later in the week. 3 IPOS in Shenzhen rose to their limits, trading well above initial IPO pricing. China continues to draw attention to plans to accelerate IPOs in 2016. Miners in Australia (BHP, +3.5%; RIO +4.9%) were supported by firmer iron ore prices. NZD/USD hit 0.6817 on improving trade deficit. The Aussie traded in a tight range against the greenback holding near its high of 0.7038.

US Bureau of Economic Analysis accidentally released November consumer spending (PCE) data early, showing that spending increased 0.3% on the month or $12.43T v $12.39T prior. Prior month's figures also indicated a downward revision to flat from the initially reported 0.1%. The full report, including the income figures and the Fed's preferred inflation measure, will be released 8:30ET Wednesday as scheduled.

China NDRC Chairman Xu Shaoshi in an interview noted that China may face more severe economic situation next year. China is facing relatively large downward pressures including Fed rate hike and a fragile economic recovery.

After the US close saw major retailer Nike report strong earnings in Q3. On the conference call Nike indicated that Q3 Rev would rise in the high single digit to low double digit range and FY16 Rev would rise to higher mid-single digit percent. This gave Nike an afterhours boost of 2.4%. Bed Bath and Beyond revised their Q3 guidance lower sending it over 6% lower afterhours.

***Equities***
US equities / ADRs:
- CELG: Settles REVLIMID patent litigation with Allergan unit; +5.8% afterhours
- CHD: To be added to S&P 500 Index; SNX promoted to S&P400, and GBX to enter S&P600 after the close of trading on Dec 28th; +2.5% afterhours
- NKE: Reports Q2 $0.90 v $0.85e, R$7.7B v $7.81Be; +2.4% afterhours
- MU: Reports Q1 $0.24 v $0.23e, R$3.35 v $3.52Be; Guides Q2 -$0.12 to -$0.05 v +$0.22e, Rev $2.9-3.2B v $3.47Be - presentation slides; -5.8% afterhours
- BBBY: Cuts Q3 guidance $1.07-1.10 v $1.18e (prior $1.14-1.21), Narrows Rev $3.0B v $3.03Be (prior $2.99-3.06B); -6.3% afterhours

Notable movers by sector:
- Consumer discretionary: CJ CGV Co 079160.KR +1.2%, Wanda Cinema 002739.CN -0.4% (denies on stock swap speculation); Slater & Gordon SGH.AU -6.1% (clarification)
- Financials: Guotai Junan International Holdings 1788.HK +8.4% (Chairman returns to work); Haitong Securities 6837.HK +2.8% (terminates share buyback); Bank of Zhengzhou 6196.HK +1.0 % (IPO debut)
- Industrials: China Railway Group 390.HK +1.0% (cooperation with local govt)
China State Construction Engineering 601668.CN +0.8% (signs agreement); Posco 005490.KR +3.5% (agreement to jointly develop technology); Aurizon Holdings AZJ.AU -11.3% (impairment changes in H1)
- Technology: Siliconware Precision Industries 2325.TW +4.4%, Advanced Semiconductor Engineering 2311.TW +5.2% (ASE's new offer)
- Materials: Orocobre ORE.AU +0.8% (guidance); Atlas Iron AGO.AU +5.9% (signs restructuring support agreement)
- Healthcare: Greencross Limited GXL.AU +0.8% (TPG plans to raise stake)
- Utilities: DUET Group DUE.AU +0.4% (guidance)

>>> US After Hours Summary: NKE +1.4%, MU -5.9%, CAMP -3.8% following


After Hours Summary: NKE +1.4%, MU -5.9%, CAMP -3.8% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings:  NKE +1.4%

Companies trading higher in after hours in reaction to news:  CELG +7.1% (settled its Natco Pharma litigation, relating to patents for Revlimid)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings:  MU -5.9%, CAMP -3.8%

Companies trading lower in after hours in reaction to news:  GALE -6.1% (disclosed it received a subpoena from the U.S. Attorney's Office for the District of New Jersey pertaining to marketing and promotional practices related to the product abstral sublingual tablets, TICC -2.5% (NexPoint approved of TICC investors' rejection of the BSP transaction)

>>> US Close Dow+0.96% S&P+0.88% Nasdaq+0.65% Russell+0.88%

Closing Market Summary: S&P 500 Returns Above 100-Day Average

The stock market registered its second consecutive advance on Tuesday with the S&P 500 climbing 0.9%. The benchmark index returned above its 100-day moving average (2,026) while the Nasdaq Composite (+0.7%) underperformed throughout the day.

Overall, the Tuesday affair was very quiet, which was evidenced by light trading volume as fewer than 850 million shares changed hands at the NYSE floor.

Equity indices ranged near their flat lines through the first two hours of the session, climbing to new highs during the afternoon. All ten sectors ended the day with gains, paced by the energy sector (+1.2%), which settled among the leaders.

To little surprise, the rally in the energy sector was underpinned by crude oil as the commodity advanced 1.0% to $36.14/bbl. Similarly, another commodity-linked sector—materials (+1.2%)—spent the day near the top of the leaderboard while most other cyclical groups posted slimmer gains.

For instance, the industrial sector (+1.2%) received support from transport stocks, evidenced by a 1.5% gain in the Dow Jones Transportation Average. The bellwether complex extended this week's advance to 2.2%, but the group remains down 7.1% in December versus a 2.0% decline in the S&P 500.

Elsewhere, the top-weighted technology sector (+0.7%) spent the day a bit behind the broader market due to daylong weakness in the shares of Apple (AAPL 107.23, -0.10). The largest stock by market cap continued its recent underperformance, shedding 0.1%, after Cowen lowered its AAPL price target to $130.

Staying in the tech sector, high-beta chipmakers also failed to keep pace with the market, largely due to SunEdison (SUNE 5.31, -1.43) as the stock plunged after activist investor David Tepper, who holds a stake in the company, demanded to inspect SUNE's financial records. Shares of SUNE sank 21.2% while the PHLLX Semiconductor Index added 0.2%.

Today's advance in equities was accompanied by steady selling in the bond market. The 10-yr note slumped to lows into the close, pushing its yield up to 2.24% (+5 bps).

Economic data included Q3 GDP, Existing Home Sales, and FHFA Housing Price Index:

  • The third estimate for third quarter GDP was revised slightly lower to 2.0% from the second estimate of 2.1%, which was in-line with the consensus estimate
    • The GDP Deflator was unchanged at 1.3%, also as expected
    • The slight downward revision stemmed largely from revisions to the change in private inventories, net exports, and gross private domestic investment while real final sales growth, which excludes the change in inventories, was unchanged at 2.7%
  • Existing home sales declined 10.5% to a seasonally adjusted annual rate of 4.76 million, which was well below the consensus estimate of 5.30 million and followed a downward revision to sales in October from 5.36 million to 5.32 million
    • This was the first time since January-February 2014 that existing home sales have declined in consecutive months. Furthermore, the decline in November left existing home sales down 3.8% from a year ago, which is the first year-over-year decrease since September 2014
  • The October FHFA Housing Price Index rose 0.5% to follow last month's revised reading of +0.7% (from +0.8%)

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while November Personal Income (consensus 0.3%)/Spending data (consensus 0.3%) and November Durable Orders (consensus -0.7%) will be reported at 8:30 ET. The November New Home Sales report (consensus 505K) and the final reading of the December Michigan Sentiment Index (consensus 92.0) will both be released at 10:00 ET.

  • Nasdaq Composite +5.6% YTD
  • S&P 500 -1.0% YTD
  • Dow Jones Industrial Average -2.3% YTD
  • Russell 2000 -5.2% YTD

FT : Baxalta sounds out rivals as it weighs up Shire deal

Baxalta sounds out rivals as it weighs up Shire deal

Baxalta is sounding out potential alternatives to a takeover by Shire even as the US biotech company remains open to a deal with its UK-listed suitor.
People familiar with the matter said Baxalta was contacting other drugmakers that might be interested in making an offer to maximise its options.

No other bids have so far been received but the US company — spun off from its parent group, Baxter, in July — wants to ensure there are no better deals available before agreeing a tie-up with Shire.
However, these people said Baxalta had narrowed its differences with Shire since rejecting the latter’s $30bn hostile approach in August and Shire had not given up hope of securing its target before the end of the year.
The push for agreement could mark a final burst of action in a record year of dealmaking across the pharmaceuticals sector; more than $550bn of transactions have been announced so far, according to Dealogic, greater than the past two full years combined.
People close to the situation stressed that the outcome remained in the balance and talks could yet break down. But the chances of a deal have been boosted by Shire’s willingness to sweeten its offer with cash in a climbdown from its earlier insistence on an all-stock transaction.
Shire previously believed it would face a prohibitive US tax penalty related to Baxalta’s spin-off from Baxter if it paid with cash.
However, people familiar with the situation said this was no longer seen as “a black and white matter” after Shire received advice that there may be a way to introduce a cash component without triggering a big tax bill.
Ronny Gal, analyst at Bernstein, speculated that a deal could be struck at $52 per share with 30 per cent in cash, valuing Baxalta at about $35bn. The stock closed at $38.06 on Monday.
Other analysts cited Sanofi of France and AbbVie of the US among the companies that Baxalta might seek to draw into a bidding contest. But they said Shire could offer cost advantages related to its low-tax base in Ireland that might make it hard to compete against.
Shire has faced an uphill struggle since making its approach in the face of resistance from the US company and scepticism from its own shareholders. The Dublin-based company has seen its shares fall more than 20 per cent since August — sharply reducing the value of its initial proposal.

The decline reflects a broader sell-off in the biotech sector and doubts over the strategic rationale for buying Baxalta.
Flemming Ornskov, Shire chief executive, has argued the proposed deal would benefit both companies by creating the world’s biggest rare disease specialist, with projected annual sales of $20bn by 2020.
It would be by far the largest deal to date in Shire’s transformation from niche pharma company focused on treatments for attention deficit hyperactivity disorder into a top-tier biotech group.
Shire and Baxalta declined to comment.