(BFW) France’s Pellerin Says Internet Box Tax Is One Possibility

BN 09/02 05:56 *PELLERIN SPEAKS ON FRANCE INFO
BN 09/02 05:55 *FRANCE'S PELLERIN: NO QUESTION OF TAXING SMART PHONES/TABLETS
BN 09/02 05:55 *FRANCE'S PELLERIN: NO DECISION ON INTERNET BOX TAX
BN 09/02 05:55 *FRANCE'S PELLERIN SAYS INTERNET BOX TAX IS ONE POSSIBILITY
France’s Pellerin Says Internet Box Tax Is One Possibility
2015-09-02 06:01:01.388 GMT


By Francois de Beaupuy
(Bloomberg) -- French Culture Minister Fleur Pellerin says
on France Info radio that no decision has been made yet on a
possible extension of the TV license fee to Internet boxes.

* No plan to tax smartphones, tablets

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>>> What to look at today - 2nd of August 2015

Dow-2.84% S&P-3.01% Nasdaq-2.94% Russell-2.83% VIX 31.78 +10.08%
US Market closed much lower for its first day of the month. Asian & European bad performance after disappointing manufacturing Chinese data didn't help the sentiment. Financials, One of top weighted sector lost 3.5%, Energy lost 3.7% as crude retreat to $45.41% (-7.7%) after soaring nearly 30% during the previous three sessions. late selling was met with new highs (33.82) in the CBOE Volatility Index, which climbed into the 32.0% area as investors piled into downside protection. Volume were again above average at 1bil. shares. the 10-yr yield fell five basis points to 2.17%. Investors are waiting for employments reports on wed. & thu. (02/09 : ADP, ISM NY & Factory orders ; 03/09 : Initial jobless claims). US After Hours HRB +8.4%, BOBE +2.2% on earnings, AMBA ticking lower following earnings; WMGI +10% on Bone Graft premarket approval. Asian market is in an another volatile session,Shanghai opened down 4.5%, thean rallied to trade in positive territory, and back in -ve zone now -0.5%...S&P future is up 90bps...no big news today just rumors of more stimulus from PBoC is fueling rally. Local press reports noted a number of mainland brokerages agreed to comply with govt requests to provide additional funds to CSFC for market intervention. In addition, the State Council has reportedly set up a CNY60B fund to support small and medium-sized enterprises (SMEs). Furthermore, earlier US financial press report speculated that China has imposed controls to prevent large capital outflows and also intensify crackdown on underground banks. In FX, PBoC continues to scale back its devaluation, setting Yuan fix sharply higher for the 4th straight day. BOJ Dep Gov Nakaso said stable finance and prices contribute to potential growth, as central bank's JGB purchases have not impacted liquidity. IMF's Lagarde warned that recent market turmoil underlines spillover risks, as all economies are impacted by rebalancing China and slowing Japan.

Nikkei -0.74% Hang Seng-0.61% Shanghai -1%%

Eur$1.1286 CNY6.3651 JPY119.95 GBP1.5308 EURCHF1.0850 RUB$66.60 WTI$44.32 (-2.40%)

S&P +0.76% EuroStoxx+0.50& Dax+0.44% SMI+0.21%

Macro :
- VStoxx, VIX Show Curve Dislocation, Buy Futures Spread: SocGen
- Finland Seeks to Raise EU1.6b From State-Asset Sales: Reuters
- New Whale Seen Moving Tokyo Markets as Japan Post Sells Bonds
- PBOC Seen Quitting Yuan Support by End-2015 as Reserves Shrink
- Greece Pulse election poll find Syriza party lead over New Democracy Party at 1%

Keep an eye on :
- ABG/P SM : Abengoa shareholders comfortable up to EUR 650m raise but launch could slip to October
- ADL GY : Adler Sees Good Chances for More Acquisitions: Boersen-Zeitung
- ALO FP : GE Said to Sell Assets to Ansaldo Energia for EU Deal Approval
- ASC LN : Asos’s CEO Robertson Said to Step Down in Next Months: Sky
- AV/ LN : UK Life Insurers Well-Positioned Ahead of Solvency 2: Bernstein
- EN FP : France Considers Taxing Internet Boxes, Les Echos Says (just denied by Fr. Minister on Smart Phone tax)
- BPTY LN : GVC Says Would Consider Hostile Bwin.Party Bid, Times Reports
- ILD FP : France Considers Taxing Internet Boxes, Les Echos Says (just denied by Fr. Minister on Smart Phone tax)
- LGEN LN : UK Life Insurers Well-Positioned Ahead of Solvency 2: Bernstein
- NOK1V FH : Nokia could be bought out, Alcatel-Lucent deal has made company more attractive takeover target- Kauppalehti
- NOVN VX : Amgen, Novartis to Develop Alzheimer’s, Migraine Drugs
- NUM FP : France Considers Taxing Internet Boxes, Les Echos Says (just denied by Fr. Minister on Smart Phone tax)
- UG FP : VW, Peugeot Ask Russia to Ease Investment Obligation: Kommersant
- QIWI US : QIWI refrains from dividend payments for next few quarters, M&A in view
- SAP GY : SAP Unveils Software for Spark, Open-Source Big Data Sieve
- SIK VX : Swiss Court: Saint Gobain Doesn’t Have to Bid for All of Sika
- UBSN VX : Higher Capital Rules to Impact Swiss Economy, Ermotti Tells FuW
- UCG IM : UniCredit To Air Broad Savings Plan End-2015, Ghizzoni Tells HB
- VIV FP : Vivendi Increases Stake in Dailymotion to 90%: Les Echos

>>> Europe : Brokers Upgrades & DOwngrades - 2nd of September

>>> Up
*ALLIANZ RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*ASTRAZENECA RAISED TO BUY AT HSBC
*GENERALI RAISED TO BUY VS HOLD AT BANKHAUS LAMPE
*HELVETIA RAISED TO BUY VS HOLD AT KEPLER
*MERLIN ENTERTAINMENTS RAISED TO BUY FROM NEUTRAL AT UBS
*MOBILE TELESYSTEMS PJSC RAISED TO BUY AT HSBC
*OCTODEC RAISED TO OUTPERFORM AT MACQUARIE
*RBS RAISED TO HOLD VS SELL AT SOCGEN {NSN NU1BVY6JIJUO<Go>}
*TELECOM ITALIA RAISED TO OUTPERFORM AT RBC
*TELENOR RAISED TO OUTPERFORM VS UNDERPERFORM AT RBC
*VODAFONE RAISED TO OUTPERFORM AT RBC
*ZURICH INSURANCE RAISED TO HOLD VS SELL AT BANKHAUS LAMPE

>>> Down
*ELISA OYJ CUT TO UNDERPERFORM VS SECTOR PERFORM AT RBC
*ICADE CUT TO NEUTRAL VS BUY AT GOLDMAN
*INNOVATION GROUP CUT TO NEUTRAL VS BUY AT UBS
*MEGAFON PJSC CUT TO HOLD AT HSBC
*SUNRISE COMMUNICATIONS CUT TO SECTOR PERFORM AT RBC
*SWISSCOM CUT TO NETURAL VS BUY AT BOFA
*TELEFONICA CUT TO UNDERPERFORM AT RBC
*TELEFONICA CUT TO UNDERPERFORM VS NEUTRAL AT BOFA

>>> PT Chgange


>>> Initiation
*ALTICE RATED NEW OVERWEIGHT AT JPMORGAN


>>> Call
>> Stock
*EI TOWERS SET AS A NEW LONG AT MEDIOBANCA, REPLACES SARAS
*ENEL, TOD’S SET AS NEW SHORTS AT MEDIOBANCA
*ENEL GREEN POWER, SAIPEM EXIT SHORT STOCKS AT MEDIOBANCA

FT : Fed official flags concern over US growth


Slowing foreign economies, stock market volatility and falling commodity prices could deal a setback to US growth, a Federal Reserve policymaker warned as he made the case for a modest path of monetary policy tightening.
Eric Rosengren, president of the Boston Fed, suggested that the slowdown overseas may prompt a reduction in his growth outlook in the central bank’s next forecasting round and dent his confidence that inflation will accelerate.

His words came as global stocks suffered a fresh knock amid the quickest contraction in Chinese factory activity for three years. Faltering growth in China plus days of sharp market gyrations are clouding the outlook for global growth even as the US expansion continues apace.
“These developments might suggest a downward revision in the forecast that is large enough to raise concerns about whether further tightening of labour markets is likely,” Mr Rosengren said in a speech in New York.
“Without an expectation of growth above potential and further tightening of labour markets, I would lose my primary rationale for a forecast of rising inflation, diminishing my confidence that inflation will reach the 2 per cent target within a reasonable timeframe.”
Mr Rosengren is at the dovish end of the spectrum among Fed policymakers and does not vote on rates this year, but his words are revealing of the range of views within the central bank as it tussles with the timing of the first rate increase in nearly a decade. He made no explicit comment on when he thought short-term rates should start rising, but said that he did not believe moving the timing forward or back a couple of months would make a big economic difference. His focus on the path of rate hikes rather than the timing of the first move suggested to some economists he might be more willing to accept an initial increase as long as it was combined with strong assurances that subsequent rises will be gradual.
Michael Feroli, US economist at JPMorgan Chase, said: “While the market isn’t helping September lift-off odds this week, the latest Fedspeak suggests the committee could potentially gel around agreeing to a hike at the next meeting, provided it is coupled with strong communications that the path of subsequent hikes will be gradual.”
Stanley Fischer, the vice-chair of the Fed’s Board of Governors, sought over the weekend to keep open the option of lifting rates as soon as September, but the Federal Open Market Committee is divided as to when to pull the trigger. Much will depend on the view of Janet Yellen, the Fed chair, who has not spoken publicly since testimony before Congress in July.
Mr Rosengren focused the bulk of his speech on the path of tightening after lift-off eventually occurs. He laid out a case for a “modest” path of tightening, arguing rates should rise at a much slower pace than in the previous two tightening cycles of 1994 and 2004.
The Boston Fed chief pointed out that whereas core inflation, measured by the personal consumption expenditures index, was above 2 per cent at the start of the 1994 tightening cycle and narrowly below it in 2004, when it last started lifting rates, it is now running at a year-on-year rate of just 1.2 per cent.
Growth is also running at a slower pace. And while the unemployment rate is lower than at the start of the 1994 and 2004 tightening cycles, a broader measure of joblessness which includes people working part-time for economic reasons now lies between the rates in 2004 and 1994.

Mr Rosengren said: “If one believes the broader measure of unemployment better captures slack in the economy, then labour markets would not be viewed as unusually tight for commencing the tightening cycle. This potential additional slack would also be a reason for policymakers to follow a more modest interest rate path at the beginning of a tightening cycle.”
The Fed has set itself two tests for lifting rates. One sets the need for “some further improvement” in the labour market — and Mr Rosengren said this one had largely been met. The second requires policymakers to be “reasonably confident” that core inflation measured by the personal consumption expenditures index will move back to 2 per cent in the medium term.
Here Mr Rosengren argued that recent data “have yet to indicate that this second condition will be met in the coming months”. As such, policymakers would need to rely on forecasts of higher inflation — something Mr Fischer did in his speech over the weekend. Unfortunately, forecasters have in recent years inaccurately predicted that inflation will return to 2 per cent, Mr Rosengren observed.
Being confident on inflation depends on being sure that the economy will continue to grow above its potential rate, and that labour market slack will carry on shrinking. This is where recent global developments are important, because they could trigger a sufficiently large setback in the outlook to raise questions about whether the US labour market will carry on tightening.
“Indications of a much weaker global economy would at least increase the uncertainty surrounding policymakers’ economic growth and inflation forecasts,” Mr Rosengren added.

FT : Banks to face €61.5bn hit from new accounting rules, says report


New accounting rules could force Europe’s top banks to recognise an extra €61.5bn in loan losses, new analysis shows, as a major UK pensions group has warned that bank accounting is not fit for purpose.
Analysts at Barclays have calculated how 27 of Europe’s biggest banks would fare under new global rules governing how much lenders should set aside for potential bad loans.

In a report published on Tuesday, they found that the rules would trigger an increase of about 34 per cent in loan loss provisions across the group, as well as lower bank valuations and more volatile earnings.
The report came as the UK’s Local Authority Pension Fund Forum reignited a long-running row over the new rules on financial instruments, dubbed IFRS 9, describing them as “fundamentally flawed”.
The LAPFF published an opinion from George Bompas QC, claiming that the new regime would still not give a “true and fair” view of banks’ financial position. It wants the EU to refuse to endorse the standards.
The rules on financial instruments are a culmination of a seven-year project to make company accounts paint a more accurate picture. They came in response to concerns about how banks were dealing with impairments during the financial crisis.
Banks were unable to book accounting losses until they were incurred, even though they could see the losses coming. At times the incurred loss rule meant banks overstated profits upfront and did not make prudent provisions against expected losses, particularly in areas such as loans secured against property.
Under IFRS 9, which is due to come into force in 2019, banks will move from an “incurred loss” to an “expected loss” model, where they are forced to set aside money for the expected losses on all loans, and lifetime losses on riskier ones.
In its research, Barclays said the new requirement to recognise expected losses on all loans at initiation would add about €13.4bn to the banks’ loan loss provisions. Another about €48bn would be added because of additional provisions for lifetime losses on bad loans.
The hit to capital comes as banks are already facing higher capital demands from a string of new rules.
Spain’s Caixa, Italy’s UBI and the UK’s Standard Chartered are the most affected by the change in the IFRS 9 rules. Caixa’s common equity tier one ratio would fall by about 1.7 per cent as a result of the higher loan losses triggered by the rules, Barclays said, while Standard Chartered’s and UBI’s would fall by about 3 per cent.
Banks that would see the slightest impact include Credit Suisse, UBS, Virgin Money and Nordea.
The rules will have a broader impact than the immediate financial hit. “Using ‘expected loss’ may lead banks to overestimate losses during severe downturns, increasing earnings volatility,” the note said. “This may lead to higher CET1 (capital) ratios over time.”
While the rules do not come into force until 2018, Barclays said some banks with excess capital might “soften the one-off impact” by taking higher provisions in 2016 and 2017.

>>> QIWI refrains from dividend payments for next few quarters, M&A in view

QIWI refrains from dividend payments for next few quarters, M&A in view

QIWI plc, (NASDAQ:QIWI) ("QIWI" or the "Company") said the following in a portion of the 2Q15 results, posted on 1 September 2015 on its website:

QIWI continues to pursue different M&A opportunities and considers the timing and current market conditions to favor this strategy. We plan to refrain from paying dividends for the next few quarters with the objective to return to our historical dividend distribution practice once this window closes.

Russian payment services company QIWI will refrain from payment of dividends with a view to possible acquisitions, according to Russian daily Vedomosti, which reported on this development. QIWI's chief executive officer Sergey Solonin told Vedomosti that the company is considering a possibility of acquiring payment services, and services for logistics and e-commerce.

The acquisitions will involve only Russian companies, and the buy could exceed USD 50m, Solonin was cited as saying.

QIWI's total adjusted net revenue for 2Q15 was RUB 2.525bn (USD 45.5m), and adjusted EBITDA increased 13% to RUB 1.483bn (USD 26.7m), the company said in the statement.

>>> Nokia could be bought out, Alcatel-Lucent deal has made company more attract

Nokia could be bought out, Alcatel-Lucent deal has made company more attractive takeover target 

Nokia, the Finnish telecom equipment company, is believed to be the next listed company which could be bought out from Helsinki stock exchange, according to Kauppalehti Online. The Finnish language item cited a survey done by Nordnet, the Finnish broker, in which it had asked a likely takeover candidate from the investors.

The majority, over one-third of respondents believed Nokia will be the next company to be bought out. It wrote that the company has made its best M&A transaction with its current management and the company’s structure has changed as a result.

The piece also cited Jukka Oksaharju, a share strategist from Nordnet who said that the most recent Nokia-Alcatel-Lucent deal is a prelude for the sale of the entire company and has in fact made Nokia even more attractive.

Kauppalehti Online

>>> Asian Update Nikkei+0.75% Hang Seng -0.28% Shanghai -0.14%

Asian Mid-session Update: Asia equities, US futures reverse initial declines; Australia GDP slows to 4-year lows but avoids contraction


***Economic Data***
- (AU) AUSTRALIA Q2 GDP Q/Q: 0.2% (slowest growth in over 4 years) V 0.4%E; Y/Y: 2.0% V 2.2%E
- (NZ) NEW ZEALAND AUG ANZ COMMODITY PRICE M/M: -5.2% V -11.2% PRIOR; 5th straight decline
- (JP) JAPAN AUG MONETARY BASE Y/Y: 33.3% V 32.8% PRIOR; MONETARY BASE END OF PERIOD: ¥327.4T V ¥325.7T PRIOR
- (KR) SOUTH KOREA JULY CURRENT ACCOUNT: $10.1B V $12.2B PRIOR

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.8%, S&P/ASX -1.2%, Kospi -0.5%, Shanghai Composite -1.4%, Hang Seng -1.1%, Sept S&P500 +0.7% at 1,929

***Commodities/Fixed Income***
- Dec gold -0.1% at $1,138/oz, Oct crude oil -2.3% at $44.38/brl, Dec copper flat at $2.30/lb
- (NZ) Fonterra Global Dairy Trade auction: Dairy Trade price index: +10.9% v +14.8% prior auction; 2nd straight increase
- (US) API Petroleum Inventories: Crude +7.6M v 0e (first build in 6 weeks)
- SLV: iShares Silver Trust ETF daily holdings fall to 10,110 tonnes from 10,137 tonnes
- USD/CNY: (CN) PBoC sets yuan mid point at 6.3619 v 6.3752 prior setting; 4th straight stronger Yuan setting
- (JP) BOJ offers to buy ¥400B in 1-3yr JGBs, ¥400B in 3-5yr JGBs, ¥400B in 5-10yr JGBs
- (AU) Australia MoF (AOFM) sells A$600M in 1.75% 2020 Bonds; avg yield: 2.0927%; bid-to-cover: 3.68x

***Market Focal Points/FX***
- Wild volatility on display in the US hours has reverberated in Asia, but this time the pendulum is swinging the other way. After opening down nearly 4.5%, Shanghai Composite has entered midday break up 0.3%. Likewise, S&P futures are up over 20pts or over 1% around 1,940. High-beta AUD and NZD currencies are up on USD by 50pips from the lows above 0.7030 and 0.6350 respectively, while JPY is sold across the board as USD/JPY spiked up over 100pips from the lows above 120.40.

- Once again, there is little in terms of significant fundamental catalysts to attribute the bounce, although more stimulus measures out of China are helping sentiment. Local press reports noted a number of mainland brokerages agreed to comply with govt requests to provide additional funds to CSFC for market intervention. In addition, the State Council has reportedly set up a CNY60B fund to support small and medium-sized enterprises (SMEs). Furthermore, earlier US financial press report speculated that China has imposed controls to prevent large capital outflows and also intensify crackdown on underground banks. In FX, PBoC continues to scale back its devaluation, setting Yuan fix sharply higher for the 4th straight day.

- Australia Q2 GDP avoided a contraction feared by some analysts, particularly in light of soft exports component of current account released overnight, but still registered its weakest growth in over 4 years. Final consumption component held up, rising +0.9% v +0.5% prior, but Terms of Trade decline worsened to -3.4% v -2.9% prior. Speaking after the data release, Australia Treasurer Hockey said the slowing GDP is consistent with forecasts, but exports of services were resilient due to demand from Asia.

- In other notable speakers, BOJ Dep Gov Nakaso said stable finance and prices contribute to potential growth, as central bank's JGB purchases have not impacted liquidity. IMF's Lagarde warned that recent market turmoil underlines spillover risks, as all economies are impacted by rebalancing China and slowing Japan.

***Equities***
US equities / ADRs:
- FLXN: Granted Fast Track Status by the FDA for FX006 for treatment of Osteoarthritis of the knee, expects to complete planned NDA submission in H216; +8.5% afterhours
- HRB: Reports Q1 -$0.35 v -$0.41e, R$138M v $136Me; Approves $3.5B (38.5% of market cap) buyback and capital structure program; +7.8% afterhours
- GWRE: Reports Q4 $0.35 v $0.26e, R$125.9M v $122Me; -5.0% afterhours
- AVAV: Reports Q1 -$0.30 v -$0.18e, R$47.1M v $52.8Me; -5.9% afterhours
- AMBA: Reports Q2 $0.88 v $0.81e, R$84.2M v $79.8Me; Guides Q3 R$90-93M v $89.5M - earnings call; -9.2% afterhours

Notable movers by sector:
- Consumer discretionary: Seven Group Holdings SVW.AU -2.6% (speculation to divest asset)
; Wynn Macau 1128.HK -5.1%, Sands China 1928.HK -1.5%, Galaxy Entertainment Group 27.HK -4.2% (Macau casino revenue continues to decline)
- Financials: Ping An Bank Co 000001.CN -2.6% (approval for private placement); CITIC Securities 600030.CN -2.0%, GF Securities 000776.CN -3.2%, HTSC 6886.HK -2.6% (provide funds to CSF, to clear illegal financing accounts)
- Technology: Sharp Corp 6753.JP -0.6% (speculation to set up LCD jv); Acer Inc 2353.TW +0.8% (speculation to raise notebook prices)
-Telecom: SmarTone Telecommunications Holdings 315.HK -2.4% (FY15 result)

Eurostar Services Disrupted by Immigrants in Tunnel, AFP Says


BN 09/02 04:54 *EUROSTAR SERVICES DISRUPTED BY IMMIGRANTS, AFP SAYS
Eurostar Services Disrupted by Immigrants in Tunnel, AFP Says
2015-09-02 04:57:57.413 GMT


By David Whitehouse
(Bloomberg) -- Hundreds of passengers remained stranded at
Calais at 05:00 a.m. CET because of the presence of intruders
thought to be immigrants in the tunnel, Agence France-Presse
reports, citing an unidentified Eurostar spokesman.

* A total of six trains have been disrupted so far, AFP says

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>>> US After Hours Summary: HRB +8.4%, BOBE +2.2% on earnings, A

After Hours Summary: HRB +8.4%, BOBE +2.2% on earnings, AMBA ticking lower following earnings; WMGI +10% on Bone Graft premarket approval

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: HRB +8.4% (also announced bank divestiture transaction now closed; announces new a $3.5 billion share repurchase program, modified Dutch auction), BOBE +2.2% (also announced board authorizes pursuit of a $200 mln sale-leaseback transaction).

Companies trading higher in after hours in reaction to news: WMGI +10.0% (announces FDA approval for its Premarket Approval Application of its Augment Bone Graft), FLXN +4.4% (announces FDA fast track designation for its FX006 candidate, to help treat patients receiving IA injections for osteoarthritis of the knee), ITCI +1.6% (announces the publication of previously announced positive results from its ITI-007 Phase 2 clinical trial in patients with schizophrenia).

After Hours Losers:

Companies trading lower in after hours in reaction to earnings:  AMBA -2.5%

Companies trading lower in after hours in reaction to news: SIXD -5.4% (files for ~8.1 mln share offering of common stock on behalf of selling shareholders), ZINC -4% (provides update on operations at its Mooresboro, North Carolina zinc production facility, notes production was limited by two primary factors).