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

Selling pressure has returned to the Asian equity markets after Friday's bounce, even though the PBoC has set Yuan firmer for the 2nd straight day. Instead, investors appear to be unimpressed by the latest inflation data from China released over the weekend and also the neglect by the authorities to inject any additional liquidity. December CPI met expectations, but it was mainly the food component - 2.7% v 2.3% prior - that saw some growth, while the non-food CPI remained at 1.1%. Rising threat of China deflation has translated into record lows for some key commodity currencies. MXN and ZAR were particularly hard-hit above 18 and 17.80 respectively. USD/CAD added 30pips close to 1.4190, and AUD/USD traded down nearly 50pips from opening levels below 0.6930. US equity futures were down as much as 0.75% but bounced back in afternoon trade. Likewise, USD/JPY initially cratered 60pips toward 116.60 before a mid-session recovery. In notable Chinese press reports, CASS researcher said expectations of yuan's depreciation and capital outflows have been behind the drop in China's foreign exchange reserves. Recall the latest data for December showed reserves post their biggest decline on record of over $100B to $3.33T. NDRC official also offered downbeat forecasts, noting it would be difficult for China to maintain GDP average of above 6.5% in 2016-20 period, which is required for China to meet its objective of doubling GDP in 2020 relative to 2010 levels. over the Week end : BONT: Sycamore Partners said to have approached company to combine with Belk, KSS: Said to consider break-up of the company and taking itself private

Nikkei closed Hang Seng -2.37% Shanghai -5%

Eur$1.0917 CNY (Onshore) 6.5838 CNH (Offshore) 6.6622 JPY 117.22 GBP 1.4533 CHF 0.9936 RUB$ 75.60 WTI 32.50 (- 2%)

S&P -0.43% EuroStoxx -1.3% Dax-1.5% SMI -1.10% FTSE -0.69%

Macro :
- Fed Open to Modest Increase in Risk Threshold, Alvarez Says
- Renzi Says Italian Projects by Global Investors to Be Announced
- French Business Leaders Ask for Relaxing of Work Rules, JDD Says
- London Hedge Fund Omni Sees 15% Yuan Drop, and More in a Crisis
- Europe May Be ‘Ground Zero’ of 2016 Politics, Roubini Says: AFR
- Kohl’s Said to Consider Taking Itself Private: WSJ
- Legendary Artist David Bowie Dies at 69 http://bit.ly/1ncK5yr

Keep an eye on :
- AAL LN : Anglo to Sell Brazil Mine for $1B This Week, Times Reports
- ABG SM : Abengoa Said to Present Viability Plan by End of January
- AF FP : Air France to Announce New Growth Plan Friday, Les Echos Says http://bit.ly/1RF4xmI
- ALV GY : Allianz Considers Insurance Business in S. Korea: MoneyToday
- ATLN VX : Actelion Confirms 2015 Core Earnings Growth >20%
- BGN IM : Banca Generali Sees 2016 Inflows Close to 2015 Level: Repubblica
- BG/ LN : Glass Lewis to Support Shell/BG Group Deal, Mail Reports
- BG/ LN : Standard Life Investments to Vote Against Shell’s Bid for BG
- BG/ LN : ISS Recommends Shell/BG Deal, Has Compelling Strategic Rationale
- CGG FP : Reports Q4 Vessel production rate 89% v 92% y/y; Vessel availability rate 92% v 87% y/y, Guides FY15 net debt $2.50B v $2.54B q/q
- CNHI IM : Deere Still Sees FY16 Equip. Ops Net ~$1.4b, Sales Down ~7 y/y
- CRH LN : CRH confirms EUR 1bn disposals in 2015, including 25% stake in Mashav
- DBK GY : Deutsche Bank Said to Sell London Bullion Vault to ICBC: Reuters
- DLG GY : Reports Prelim Q4 Rev $397M (prior guidance $390-400M) v $435M y/y, Guides FY16 Rev up single digit
- FCA IM : Fiat Chrysler’s Goal for Alfa Romeo Slipping - WSJ
- GSK LN : GSK break-up urged by star fund manager Neil Woodford
- HLE GR : Hella 2Q Sales Rise 10%; EPS Down 5%; Confirms FY16 Outlook
- HOME LN : Home Retail Group shareholders want at least GBP 1.6bn from Sainsbury 
- ITALGAS : Italgas and 2i Rete Gas may merge and list Il Corriere della Sera
- KER FP : Pressure Builds on Gucci Designer to Translate Buzz Into Sales
- LRD LN : Amphenol Is Assessing Laird for Possible Takeover: Telegraph
- LHA GY : Lufthansa Sees 2016 Earnings Growth as Fuel Costs Decline
- ML FP : Michelin Plans EU150m Buyback Between Jan. 11-June 15
- PRS SM : El País owner faces activist pressure for board shake-up, An activist hedge fund (Amber Capital) is pressing for a corporate governance upheaval at the owner of Spain’s El País newspaper ahead of the company’s board being put up for renewal.
- PSM GY : ProSiebenSat.1 Pulls International OTT Service: BroadbandTVNews
- QIA GY : Qiagen 2015 Adj. Net Sales Rise 3%; Sees 6% Growth in 2016
- RNO FP : France Won’t Sell Renault Shares in Coming Weeks, Echos Says
- SAN FP : Sanofi, Warp Drive Bio to Collaborate in Oncology
- SAN FP : Sanofi Teams With Innate Pharm in Deal to Develop Cancer Drugs
- SHP LN : Baxalta agrees to terms of GBP 22bn sale to Shire, $48 per share and include a cash component of up to 40%, or GBP 8.8bn
- GLE FP : SocGen CEO Says France Needs Fast Reforms on Employment: Europe1
- SPD LN : Sports Direct Holder Crispin Odey Cuts Its Stake: Telegraph
- STL NO : Two Norway Conservative MP’s Argue for Lower Statoil Div: DN
- SYNN VX : ChemChina to Acquire Machinery Maker Kraussmaffei From Onex
- TSCO LN : Asda CEO Says Supermarket Is Slashing Prices Further: Telegraph
- TFI FP : BFMTV Files Appeal Over LCI Free-To-Air Decision: AFP
- HO FP : Thales Alenia Space Had ‘Extraordinary’ Year in 2015: Tribune
- TNTE NA : FedEx, TNT Express Extend Acceptance Period
- FP FP : Total Reports Steam Loss at Texas Petrochemical Refinery Unit
- UNICAJA IPO : Spain’s Unicaja to Hold EU800M IPO in May: El Confidencial
- VONN SW : Vontobel Plans to Stay Independent, Board President Tells NZZ- VOW3 GY : Volkswagen to Unveil 3 New Models at Delhi Auto Expo Next Month

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

>>> Up
*BAE SYSTEMS RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*BEIERSDORF RAISED TO NEUTRAL FROM SELL AT GOLDMAN
*EFG INTERNATIONAL RAISED TO OUTPERFORM AT CREDIT SUISSE
*FIRST HORIZON RAISED TO BUY VS HOLD AT EVERCORE ISI
*GIVAUDAN RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*LVMH RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*MAERSK RAISED TO BUY VS NEUTRAL AT UBS
*SAGE GROUP RAISED TO BUY VS UNDERPERFORM AT BOFA
*STANDARD LIFE RAISED TO BUY VS HOLD AT JEFFERIES
*TDC RAISED TO BUY VS NEUTRAL AT UBS
*VALMET RAISED TO BUY VS HOLD AT BERENBERG
*ZURICH INSURANCE RAISED TO OVERWEIGHT AT BARCLAYS

>>> Down
*COCA-COLA FEMSA CUT TO REDUCE VS NEUTRAL AT NOMURA
*OMV CUT TO UNDERWEIGHT VS EQUAL WEIGHT AT MORGAN STANLEY
*QINETIQ CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*SAFRAN CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN

>>> PT Change


>>> Initiation
*DRILLISCH RATED NEW BUY AT HSBC, PT EU50
*EDAG ENGINEERING RATED NEW OVERWEIGHT AT MORGAN STANLEY PT EU25
*ELIOR RATED NEW BUY AT UBS, PT EU22
*SSP GROUP RATED NEW SELL AT UBS, PT 280P
*TLG IMMOBILIEN RATED NEW BUY AT BERENBERG, PT EU21

>>> Call
>> Stock
*BAVARIAN NORDIC EXIT KEY BUYS LIST AT CITI
*GRAND CITY EXIT KEY BUYS LIST AT CITI
*TF1 EXIT KEY BUYS LIST AT CITI

>>> Legendary Artist David Bowie Dies at 69


http://www.hollywoodreporter.com/news/david-bowie-dead-legendary-artist-854364

David Bowie has died after a battle with cancer, his rep confirmed to The Hollywood Reporter.
"David Bowie died peacefully today surrounded by his family after a courageous 18 month battle with cancer. While many of you will share in this loss, we ask that you respect the family’s privacy during their time of grief," read a statement posted on the artist's official social media accounts.
The influential singer-songwriter and producer, who dabbled in glam rock, art rock, soul, hard rock, dance pop, punk and electronica during his eclectic 40-plus-year career, died after a battle with cancer.
Bowie’s artistic breakthrough came with 1972’s The Rise and Fall of Ziggy Stardust and the Spiders From Mars, an album that fostered the notion of rock star as space alien. Fusing British mod with Japanese kabuki styles and rock with theater, Bowie created the flamboyant, androgynous alter ego Ziggy Stardust.
Three years later, Bowie achieved his first major American crossover success with the No. 1 single “Fame” off the Top 10 album Young Americans, then followed with the 1976 avant-garde art-rock LP Station to Station, which made it to No. 3 on the charts and featured Top 10 hit “Golden Years.”
Other memorable songs included 1983’s “Let’s Dance” — his only other No. 1 U.S. hit — “Space Oddity,” “Heroes,” “Changes,” “Under Pressure,” “China Girl,” “Modern Love,” “Rebel, Rebel,” “All the Young Dudes,” “Panic in Detroit,” “Fashion,” “Life on Mars” “Suffragette City” and a 1977 Christmas medley with Bing Crosby.
With his different-colored eyes (the result of a schoolyard fight) and needlelike frame, Bowie was a natural to segue from music into curious movie roles, and he starred as an alien seeking help for his dying planet in Nicolas Roeg’s surreal The Man Who Fell to Earth (1976). Critics later applauded his three-month Broadway stint as the misshapen lead in 1980’s The Elephant Man.

>>> CGG - Reports Q4 Vessel production rate 89% v 92% y/y; Vessel availability r

CGG - Reports Q4 Vessel production rate 89% v 92% y/y; Vessel availability rate 92% v 87% y/y 
- Guides FY15 net debt $2.50B v $2.54B q/q
- The Group's Liquidity, corresponding to the sum of the cash balance and the undrawn portion of the revolving credit facilities, is expected to amount to $420 million by December-end, to be compared to $440m by end of September 2015. 
- Over the fourth quarter, the cash performance was notably sustained by strong multi-client revenue at $242 million, by Sercel sales at $102 million, and by a tight cost and working capital management.

(Les Echos) Air France : un « projet de croissance » pour sortir du blocage soci

Air France : un « projet de croissance » pour sortir du blocage social de 2015 http://bit.ly/1RF4xmI

La direction dévoilera son nouveau plan vendredi.
Ce plan « A + » propose une croissance et des embauches à la carte, selon les gains de productivité consentis.
Après le plan Perform de 2015, dit « plan A », et le plan d'attrition, dit « plan B », voici venir le plan « A + » d' Air France. Frédéric Gagey, le PDG de la compagnie, devrait en effet dévoiler vendredi prochain, lors d'un comité d'entreprise extraordinaire, un « projet de croissance ambitieux », selon les termes du courrier adressé le 7 janvier aux élus du CCE.
Afin d'éviter les fuites, la direction n'a transmis aucun document préparatoire aux représentants du personnel. L'intention affichée serait de concilier l'esprit de reconquête du plan A avec celui d'amélioration de la productivité du plan B. Ce plan « A + » fixerait des objectifs de croissance revus à la hausse par rapport au plan A (2 % par an en long-courrier, 5 % pour Transavia).
Cette croissance serait assortie d'une politique d'embauches et de progression de carrières également ambitieuse, en contrepartie d'efforts de productivité. Contrairement au plan B, l'objectif de gain de productivité ne sera pas fixé arbitrairement, mais négocié en fonction de l'objectif de croissance souhaité. Une forme de croissance à la carte, où il ne serait plus question de départs contraints ni de date butoir.
L'objectif premier de ce plan « A + » est de sortir le dialogue social du blocage et de parvenir enfin à un accord avec le principal syndicat de pilotes, SNPL, si possible avant la saison d'été. Ce que Frédéric Gagey résume dans son courrier aux élus par le souhait d'inscrire « le dialogue social dans une perspective résolument positive ». Un changement de ton notable de la part du PDG d'Air France, qui avait brandi, jusqu'à présent, la menace des fermetures de lignes et des « départs contraints » si les pilotes n'acceptaient pas une hausse de productivité de 17 % avant fin septembre.
Embellie inespérée
Ce changement de discours, facilité par l'arrivée d'un nouveau directeur des ressources humaines, Gilles Gateau, a déjà produit son effet, avec la levée du mot d'ordre de grève lancé par la CGT. Il s'explique à la fois par l'échec du passage en force, symbolisé par l'épisode de la chemise arrachée, et par l'embellie inespérée de la situation financière d'Air France, à la faveur d'un bel été et de la chute des cours du pétrole.
Non seulement le retour aux bénéfices - les premiers depuis 2008 - s'est réalisé en 2015, mais le résultat d'exploitation, budgété à 250 millions d'euros, se situerait in fine, selon nos estimations, aux alentours de 400 millions d'euros. L'excédent brut d'exploitation (Ebitda) atteindrait 1,7 milliard. En y ajoutant les bénéfices de KLM, le groupe Air France-KLM pourrait même afficher un Ebitda de 2,2 milliards d'euros, selon le consensus des analystes. Et les perspectives pour 2016 sont également très positives, avec une baisse du prix du carburant qui devrait jouer à plein et la mise en place de nouvelles mesures d'économies fin 2015.
Air France sait aussi pouvoir compter sur un nouveau coup de pouce de l'Etat, en cas d'accord entre syndicats et direction. Il pourrait s'agir d'une exonération partielle de charges pour les personnels navigants sur le modèle du régime en vigueur dans le maritime, ainsi que d'un moratoire de la taxe de solidarité. 

>>> Asian Update

Asia Market Update: Low China inflation data keep equities, commodity FX under pressure
Mon, 11 Jan 2016 1:07 AM EST

***Economic Data***
- (CN) CHINA DEC CPI Y/Y: 1.6% V 1.6%E, 3-month high; 2015 CPI 1.4% (6-year low), below 2.0% in 2014 and 3.0% official target
- (CN) CHINA DEC PPI Y/Y: -5.9% V -5.8%E; 46th consecutive month of decline
- (AU) AUSTRALIA DEC ANZ JOB ADVERTISEMENTS M/M: -0.1% V 1.1% PRIOR (1st decline in 5 months)
- (NZ) NEW ZEALAND NOV BUILDING PERMITS M/M: 1.8% (adj) v 5.4% PRIOR
- (MY) Malaysia Nov Industrial Production Y/Y: 1.8% v 4.0%e

***Index Snapshot (as of 05:00 GMT)***
- Nikkei225 closed, S&P/ASX -1.2%, Kospi -0.7%, Shanghai Composite -2.5%, Hang Seng -2.4%, Mar S&P500 flat at 1,912

***Commodities/Fixed Income***
- Feb gold +0.5% at $1,103/oz, Feb crude oil -2.0% at $32.48/brl, Mar copper -0.9% at $2.00/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 4.5 tonnes to 649.6 tonnes; 1-month high
- USD/CNY: *(CN) PBOC SETS YUAN MID POINT AT 6.5626 V 6.5636 PRIOR; 2nd straight day of firmer setting
- USD/ZAR: Rand currency (ZAR) falls over 10% in early Asia trade through 17.80; record low
- USD/MXN: Mexican Peso (MXN) weakens through MXN18.00; record low
- (KR) South Korea Sells 5-yr Pre-Issuance Government bond at 1.805%

***Market Focal Points/FX***
- Selling pressure has returned to the Asian equity markets after Friday's bounce, even though the PBoC has set Yuan firmer for the 2nd straight day. Instead, investors appear to be unimpressed by the latest inflation data from China released over the weekend and also the neglect by the authorities to inject any additional liquidity. December CPI met expectations, but it was mainly the food component - 2.7% v 2.3% prior - that saw some growth, while the non-food CPI remained at 1.1%. ANZ economist noted the modest uptrend of the past two months would likely be transitory "given the intensifying drop of oil prices in January." Indeed, the wholesale inflation also fell for the 46th straight month, and the overall 2015 CPI came in at just 1.4%, a 6-year low.

- Rising threat of China deflation has translated into record lows for some key commodity currencies. MXN and ZAR were particularly hard-hit above 18 and 17.80 respectively. USD/CAD added 30pips close to 1.4190, and AUD/USD traded down nearly 50pips from opening levels below 0.6930. US equity futures were down as much as 0.75% but bounced back in afternoon trade. Likewise, USD/JPY initially cratered 60pips toward 116.60 before a mid-session recovery.

- In notable Chinese press reports, CASS researcher said expectations of yuan's depreciation and capital outflows have been behind the drop in China's foreign exchange reserves. Recall the latest data for December showed reserves post their biggest decline on record of over $100B to $3.33T. NDRC official also offered downbeat forecasts, noting it would be difficult for China to maintain GDP average of above 6.5% in 2016-20 period, which is required for China to meet its objective of doubling GDP in 2020 relative to 2010 levels.

- Outside of China, Australia's job ads data printed their first sequential decline in 5 months, though resident economist said the figures remain solid enough to keep the unemployment rate below 6.0%. Korea govt noted 2015 home transactions rose 18.8% y/y to 1.19M, and a survey saw some 15 out of 17 analysts expect BOK to leave rates on hold this Thursday.

***Equities***
US equities / ADRs:
- BONT: Sycamore Partners said to have approached company to combine with Belk - financial press
- MDXG: To Acquire Stability Biologics for $10M 60%/40% cash and stock; Raises guidance for FY16 $0.33-0.37 v $0.26e; Rev $260-270M v $251Me (prior $0.31-0.35; R $245-255M)
- KSS: Said to consider break-up of the company and taking itself private - financial press
- DIS: 'Star Wars: The Force Awakens' opening weekend box office in China seen at $53M - financial press
- DIS: "Star Wars" remained the top earning film in weekend box office with $41.6M in N America sales

Key movers in Asia
- ISU.AU: Lowers FY15/16 EBIT A$15-18M from A$26-28M amid strategic and operational issues; -39.0%.
- ASB.AU: Announces CEO transition; names David Singleton new CEO; -17.4%.
- FMG.AU, BHP.AU -4.9% on lower commodity prices.
- WPL.AU, STO.AU -2% and -5% respectively as oil declines further.