>>> What to look at today - 14th of July 2015

Dow+1.22% S&P+1.10% Nasdaq+1.48% Russell+1.06% VIX @ 14.05 (-16.52%)
US Market closed higher on Greek news & China perf. S&P closed just below its 50d MA(2,100). Global risk assets surged in reaction to the developments while outflows from the Treasury market weighed on the 10-yr note, sending its yield higher by three basis points to 2.43% after testing the 2.47% level in the early morning. Global risk assets surged in reaction to the developments while outflows from the Treasury market weighed on the 10-yr note, sending its yield higher by three basis points to 2.43% after testing the 2.47% level in the early morning. Global risk assets surged in reaction to the developments while outflows from the Treasury market weighed on the 10-yr note, sending its yield higher by three basis points to 2.43% after testing the 2.47% level in the early morning. Volume were in line with average at 730mil shares. Micron (MU US) Tsinghua Unigroup said to offer $23B or $21/shr for Micron-->+19.25% Premium vs yest. closed, this would be the largest US Takeover by a chinese company...US After HoursNEPT +14.6%, SLP +9.1%, OZRK +1.1%, NAVI -12.9%, AXS -4.0%, XYL -1.3% following earnings/guidance...Asian equity markets are tracking another big days of gains on Wall St, as worries over Grexit and China stocks slump recede. Skeptics do note that there are unresolved issues in both cases. In Greece, there are still many moving parts - namely whether the govt will be able to push through deeply unpopular reforms and whether it can even survive in its current form. China markets are slowly returning to life, even though Shanghai Composite is underperforming today. Over 200 more A-shares resumed trade with the total number of halts now at 785 - down from1,045 yesterday - resulting in more mixed sentiment. Traders are also awaiting tomorrow's GDP, industrial output, and particularly retail sales for evidence of the slump in "wealth effect" due to the recent selloff...WTI crude pushed lower by nearly 1% in electronic hours below $52/brl after fresh reports that Iran nuclear deal could be announced as early as Tuesday morning. According to one report, the draft resolution calls for UN access to Iran sites, including military ones. Report adds that if accepted, the deal could be formally adopted next month and exports of Iranian oil could resume by next year.

Nikkei +1.25% Hang Seng-0.89% Shanghai-1.24%

Eur$ 1.0999 JPY 123.27 GBP 1.5476 EURCHF 1.0457 RUB $56.6582 WTI $51.49 (-1.36%)

S&P -0.07% EuroStoxx+0.12% Dax+0.12% SMI+0.14%

Macro :
- Tsipras Govt Weighs Resigning After Wed Parliament Vote: Bild
- Schaeuble Proposes Debt Certificates for Greece: Handelsblatt
- IMF Says Greece Misses 456 Million Euro Payment Due Monday


Keep an eye on :
- AAL LN : Anglo American three Chilean copper mines eyed by former Kinross CEO
- BCP PL : Banco Comercial Says EDP Maintains a Stake of More Than 2%
- BT/A LN : BT Group Outlook to Positive From Stable by S&P; Rating Affirmed
- ERICB SS : Ericsson Ordered to Put TCL Patent Claims on Hold for Now
- FCC SM : FCC CEO Juan Bejar Ochoa to step down; Board begins search for replacement
- GENL LN : Hayward open to 'interesting offers' for Genel Energy
- GFJ NO : Gjensidige 2Q Net Income Beats Est., Reiterates Finl Targets
- GRI LN : Grainger eyed by potential bidder taking advice from Deutsche Bank
- El Cprte Ingles : El Corte Ingles sells 10% stake to Sheikh Hamad Bin Jassim Bin Jaber Al Thani for EUR 1bn
- EVK GY : CVC Completes Sale of 15m Evonik Shrs at EU34.60/Shr
- KNIN VX : Kuehne & Nagel 2Q Sales Miss Est., Sees 2015 Ebit Margin of 5%
- LISP SW : Lindt & Sprungli 1H Rev. CHF1.41b; CHF1.42b; Sticks to Outlook
- PNL NA : PostNL Offers Employment to Independent Parcel Deliverers
- SEBA SS : SEB 2Q Net Income Beats Est.; NII Misses
- SHP LN : Shire to Deepen Push Into Biotechnology Amid Unit Cuts: WSJ
- SIE GY : Siemens Doubled China R&D Investment in Last Decade, Co. Says

>>> Europe : Brokers Upgrades & DOwngrades - 14th of July 2015

>>> Up
*BANKIA RAISED TO BUY VS REDUCE AT KEPLER CHEUVREUX
*CARNIVAL RAISED TO HOLD VS UNDERPERFORM AT JEFFERIES
*FCC RAISED TO BUY VS REDUCE AT KEPLER CHEUVREUX
*INDRA SISTEMAS RAISED TO BUY VS HOLD AT BERENBERG
*RELX RAISED TO OVERWEIGHT VS EQUALWEIGHT AT MORGAN STANLEY
*RICHEMONT RAISED TO BUY AT RENAISSANCE CAPITAL
*SKY RAISED TO BUY AT DEUTSCHE BANK

>>> Down
*DIA CUT TO UNDERPERFORM VS NEUTRAL AT EXANE
*GENEL ENERGY CUT TO SPECULATIVE BUY VS OUTPERFORM: FIRSTENERGY
*LADBROKES CUT TO UNDERPERFORM VS NEUTRAL AT CREDIT SUISSE
*PEARSON CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*RWE CUT TO SELL VS NEUTRAL AT UBS
*SUBSEA 7 CUT TO REDUCE VS HOLD AT HSBC
*WILLIAM HILL CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE

>>> PT Change


>>> Initiation
*HISCOX ASSUMED AT UNDERPERFORM AT CREDIT SUISSE
*STAFFLINE RATED NEW BUY AT BERENBERG, PT 1,675P

>>> call

FT : Genel Energy co-founder Tony Hayward open to sale

Genel Energy co-founder Tony Hayward open to sale

Tony Hayward, former chief executive of BP, is prepared to sell Genel Energy, the lossmaking Kurdistan oil producer he co-founded, should a buyer hunting “high-quality assets” make an approach at the right price.

Mr Hayward, who has stepped back from his role as chief executive to become Genel’s chairman, signalled his readiness to negotiate a deal, telling the Financial Times that he would “always contemplate interesting offers” for the group, which he set up with financier Nat Rothschild and former Goldman Sachs banker Julian Metherell.


“We see ourselves both as a potential consolidator and, given the nature of the oil industry and natural state of affairs, we also see ourselves as potentially being consolidated,” Mr Hayward said.

“We have a unique set of assets, world class assets, a very focused business. So, looked at from the perspective of someone out to acquire high-quality assets, it would be quite attractive.”

Mr Hayward, who is also chairman of FTSE 100 commodities group Glencore, said Genel had “a very strong future either independently or within the scope of a larger enterprise”.

His remarks came as the group, which has been hobbled by political difficulties in Kurdistan, said it had parted company with chairman Rodney Chase and confirmed that Murat Özgül, president of the company’s Turkey and Kurdistan region, had become chief executive.

Mr Hayward denied his move to become chairman was linked to his role as full-time chairman of Glencore.

“This is not about Glencore, this is about Genel,” he said. “This is about my life, what I want to do. I’m 58 years old and I want a slightly less full-on life. I’ve done it for four-and-a-half years. I’ve got a very good CEO to succeed me.”

Just a few weeks before Mr Hayward’s permanent appointment at Glencore in May last year, Ivan Glasenberg, the commodities group’s chief executive and one of its largest investors, said: “I doubt you could have a chairman of a major FTSE 100 company who is also CEO of another company.”

The latest changes at Genel follow the departure in February of Mr Metherell, then chief financial officer, who was replaced by Ben Monaghan, a JPMorgan investment banker with a strong record in dealmaking.


In perfect conditions, businesses would not kick their chief executives up to chairman, as Genel has done with Tony Hayward. But The conditions in which explorer Genel operates are hardly perfect, says Jonathan Guthrie.

Speculation has since swirled around the company, with suggestions that Royal Dutch Shell, which in April announced a £55bn agreed offer for BG Group, has given thought to a deal, possibly in partnership with the Chinese. ExxonMobil, the US giant, has been cited as another potential buyer.

Genel, which has an equity market capitalisation of about £1.3bn, could be worth several billion dollars. But the political risk for an oil major such as Shell, with operations in southern Iraq, would be significant. Any buyer already active in the south would need to weigh the merits of a deal against the risk of antagonising Baghdad.

Moreover, the company has been bedevilled by missed payments for its exports after a disagreement between the Iraqi federal administration and the Kurdistan Regional Government over the distribution of oil revenues.

This led to the freezing of payments by Baghdad to the KRG, which has in turn resulted in the regional government not paying Genel and other oil producers for much of their oil exports.

Genel on Monday disclosed in a trading update that it was owed $378m by the KRG at the end of June, up from $230m at the end of 2014. However, it maintained revenue guidance at $350m to $400m for 2015, assuming $50 a barrel Brent crude. Another UK-listed Kurdistan producer, Gulf Keystone, is also owed about $250m.


Kurdistan is one of the cheapest places in the world to extract crude. But much of its revenue is used to finance peshmerga fighters battling insurgents from the Islamic State of Iraq and the Levant, also known as Isis.

Amid continued tension with Baghdad, the KRG has since June been selling most of its crude exports independently, a development seen as likely to increase its revenues. JPMorgan Cazenove analysts said it remained to be seen whether this meant Kurdistan would begin repaying contractors.

Genel said its production had grown 41 per cent year-on-year to an average 88,800 barrels per day for the first half of 2015. It was pumping more than 100,000 b/d on peak days and was upbeat on payment prospects.

Its shares, which have fallen 34 per cent this year, dropped 3.9 per cent to 457.2p as oil prices tumbled amid expectations of a nuclear deal between Iran and the west that would lead to a lifting of sanctions against Tehran.

>>> El Corte Ingles sells 10% stake to Sheikh Hamad Bin Jassim Bin Jaber Al Than

El Corte Ingles sells 10% stake to Sheikh Hamad Bin Jassim Bin Jaber Al Thani for EUR 1bn (translated)
Story
Qatar former Prime Minister Sheikh Hamad Bin Jassim Bin Jaber Al Thani has acquired a 10% stake in the Spanish retailer El Corte Ingles for EUR 1bn, Europa Press reported, citing a company announcement.

The deal has been structured via a three-year instrument convertible into shares. The transaction values 100% of El Corte Ingles at EUR 10bn.

Sheikh Hamad, who is considered a long-term investor, will back El Corte Ingles’ business development strategy that includes expanding abroad, the Spanish-language report said.

>>> Asian Update

Asian Mid-session Update: China targets Micron as potentially its largest acquisition in the US; NAB sees RBA on hold as Business Confidence improves


***Economic Data***
- (CN) CHINA JUN M2 MONEY SUPPLY Y/Y: 11.8% V 11.0%E (4-month high); M1 MONEY SUPPLY: 4.3% V 4.2%E
- (CN) CHINA JUN NEW YUAN LOANS (CNY): 1.27T V 1.05TE; 5-month high
- (CN) CHINA JUN AGGREGATE FINANCING (CNY): 1.86T V 1.40TE
- (CN) CHINA Q2 FOREIGN RESERVES: $3.69T V $3.70TE
- (AU) AUSTRALIA JUN NAB BUSINESS CONFIDENCE: 10 (highest since Sept 13) V 7 PRIOR; CONDITIONS: 11 V 7 PRIOR
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 107.0 v 111.0 prior
- (SG) SINGAPORE Q2 ADVANCED GDP Q/Q: -4.6% V -1.5%E; Y/Y: 1.7% V 2.4%E
- (UK) UK JUN BRC SALES LFL Y/Y: +1.8% V +0.5%E (3-month high)

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +1.4%, S&P/ASX +1.7%, Kospi -0.2%, Shanghai Composite +0.7%, Hang Seng -0.4%, Sept S&P500 flat at 2,093

***Commodities/Fixed Income***
- Aug gold -0.1% at $1,154/oz, Aug crude oil -0.9% at $51.73/brl, Sept copper -0.1% at $2.54/lb
- (CN) PBoC to inject CNY20B in 7-day reverse repos (6th consecutive injection); Offer yield at 2.50%, unchanged from prior
- GLD: SPDR Gold Trust ETF daily holdings rise 1.5 tonnes to 709.1 tonnes; First rise since June 25th

***Market Focal Points/FX***
Asian equity markets are tracking another big days of gains on Wall St, as worries over Grexit and China stocks slump recede. Skeptics do note that there are unresolved issues in both cases. In Greece, there are still many moving parts - namely whether the govt will be able to push through deeply unpopular reforms and whether it can even survive in its current form. China markets are slowly returning to life, even though Shanghai Composite is underperforming today. Over 200 more A-shares resumed trade with the total number of halts now at 785 - down from1,045 yesterday - resulting in more mixed sentiment. Traders are also awaiting tomorrow's GDP, industrial output, and particularly retail sales for evidence of the slump in "wealth effect" due to the recent selloff. In the mean time, China June lending and money supply figures came in a multi-month highs, building the case of recovery implied in yesterday's better than anticipated trade numbers.

Australia's NAB Business Confidence also surprised to the upside, hitting its best mark since September of 2013 despite the soft commodities markets. In its accompanying remarks, NAB maintained its GDP forecast, lowered its projections for peak unemployment and forecasted RBA to remain on hold until well into 2016, at which point its next move would be a rate hike. AUD/USD rose over 20pips on the release above 0.7430.

WTI crude pushed lower by nearly 1% in electronic hours below $52/brl after fresh reports that Iran nuclear deal could be announced as early as Tuesday morning. According to one report, the draft resolution calls for UN access to Iran sites, including military ones. Report adds that if accepted, the deal could be formally adopted next month and exports of Iranian oil could resume by next year.

Singapore GDP came in sharply lower than expected, sending SGD to multi-week lows. Q/Q growth fell 4.6% and y/y growth of 1.7% was well below 2.4% expected. Manufacturing component was particularly soft, falling 14% q/q, while Services was down 2.4%.

Following some notable options activity in the US hours, Micron was reported as a potential takeover target for China's Tsinghua Group in a deal speculated to be $23B or $21/shr. This would mark the largest US takeover target by a Chinese company, although Micron spokesperson has indicated the company is yet to receive a formal offer from the Chinese firm.

***Equities***
US equities / ADRs:
- MU: Tsinghua Unigroup said to offer $23B or $21/shr for Micron - financial press
- NVGN: Pre-clinical Studies Suggest Anisina May Improve Chemotherapy Effectiveness in Childhood Cancer; +6.1% afterhours
- NAVI: Guides Q2 $0.40 v $0.56e; FY15 $1.85 v $2.20e; cites aggressive market pricing for private education loan portfolios; -13.5% afterhours

Notable movers by sector:
- Consumer discretionary: Galaxy Entertainment Group 27.HK +5.4%, Sands China 1928.HK +5.5% (softens ban on smoking)
- Financials: CITIC Securities 6030.HK +0.6% (H1 result); Bohai Leasing Co 000415.CN +10.0% (acquisition); Westpac Banking Corp WBC.AU +1.4% (to sell operations)
- Industrials: China Shipping Development Co 1138.HK +2.1% (H1 guidance); Brilliance China Automotive Holdings 1114.HK -6.7% (H1 guidance); BAIC Motor Corp Ltd 1958.HK -2.3% (Q2 result); Hyundai Motor 005380.KR -0.4% (speculation to cut sales target)
- Technology: Hundsun Technologies Inc 600570.CN +10.0% (CSRC's probe); Shanghai Kingstar Winning Software 300253.CN +8.5% (H1 guidance); Ourpalm Co 300315.CN +10.0% (H1 guidance); Disco Corp 6146.JP +4.5% (Q1 result speculation); Toshiba Corporation 6502.JP +2.2% (majority of board is expected to step down)
- Materials: Sinopec Yizheng Chemical Fibre Co 1033.HK -5.9% (H1 guidance); Sichuan Hebang Corp Ltd 603077.CN +10.0% (to set up private bank); Sedgman SDM.AU +15.6% (FY15 guidance); Evolution Mining EVN.AU -1.7% (speculation for Newcrest to divest interest); Mincor Resources MCR.AU -0.9% (Q2 result); Sony Corp 6758.JP -1.6% (share offering)
- Utilities: Beijing Water Business Doctor 300055.CN +10.0% (H1 guidance)
upd

(NS1) The Register: Judge says some top Dell shareholders are plum out of lu



From: LAURA ANREDER (OSCAR GRUSS & SON IN) At: Jul 13 2015 22:21:22
To: LAURENT CHEKROUN (MAKOR SECURITIES LO)
Subject: Fwd:(NS1) The Register: Judge says some top Dell shareholders are plum out of luck i
Memorandum Opinion attached
The Register: Judge says some top Dell shareholders are plum out of luck in share buyout beef
2015-07-13 20:19:11.582 GMT

http://www.theregister.co.uk/2015/07/13/jude_rules_no_appraisal_for_dell_shareholders/

PageExcerpt:
Dell has successfully whittled away at a lawsuit brought against it by major shareholders who think Michael Dell's 2013 buyout of the firm came with too small a price tag. In a Monday ruling, the Delaware Chancery Court found that five large ...

>>> US Close Dow+1.22% S&P+1.10% Nasdaq+1.48% Russell+1.06%

Closing Market Summary: Stocks Climb After Greece Reaches Deal With Creditors

The stock market began the trading week on an upbeat note with the S&P 500 registering the bulk of its 23-point gain shortly after the opening bell. The benchmark index padded that advance during the final hour, settling just below its 50-day moving average (2,100).

Equity indices spiked at the start after lengthy weekend negotiations between Greek representatives and eurozone officials produced a framework for the third rescue package for Greece. The agreement, which includes EUR25 billion in bank recapitalization funds, was cheered by global equity markets, but it is worth noting that the full bailout will be discussed once the country's government passes a series of reforms on Wednesday. The far-reaching concessions will require Greece to streamline value-added taxes, broaden its tax base to increase revenue, curtail pension costs, and privatize public assets worth as much as 50 billion euros.

Global risk assets surged in reaction to the developments while outflows from the Treasury market weighed on the 10-yr note, sending its yield higher by three basis points to 2.43% after testing the 2.47% level in the early morning.

Interestingly, the euro only saw a brief spike that was followed by heavy selling with the single currency sliding 1.4% against the dollar to 1.1000. As a result, the Dollar Index (96.82, +0.80) climbed 0.8%, erasing last week's decline.

All ten sectors ended in the green with five groups adding 1.0% or more. Heavily-weighted sectors fueled today's advance with the technology sector (+1.6%) holding the lead throughout the session. Large-cap sector components like Apple (AAPL 125.66, +2.38), Facebook (FB 90.10, +2.15), Google (GOOGL 571.73, +15.62), and Microsoft (MSFT 45.53, +0.92) spiked between 1.9% and 2.8% while Seagate (STX 46.28, +0.33) advanced 0.7% despite lowering its Q4 revenue and gross margin guidance. As for chipmakers, the high-beta group struggled to keep pace with the sector, but the PHLX Semiconductor Index still added 0.8%.

Elsewhere among influential groups, the consumer discretionary sector (+1.5%) finished right behind technology while financials (+1.1%) and industrials (+1.0%) ended near the broader market. Also of note, the health care sector (+0.8%) finished behind the broader market, which masked relative strength in biotechnology, evidenced by a 1.6% gain in iShares Nasdaq Biotechnology ETF (IBB 378.89, +6.09).

Similar to health care, telecom services (+0.6%) and utilities (unch) underperformed while the consumer staples sector (+1.0%) settled just behind the S&P 500. Thanks to today's gain, the staples sector is now up 4.2% for the month, trading well ahead of the remaining nine groups.

Today's participation was comparable to recent totals as more than 730 million shares changed hands at the NYSE floor.  

Economic data was limited to the Treasury Budget statement for June, which showed a surplus of $51.80 billion while the consensus expected a surplus of $51.00 billion. The Treasury data are not seasonally adjusted, so the June surplus cannot be compared to the $82.40 billion deficit recorded in May.

Tomorrow, June Retail Sales (consensus 0.3%) and Import/Export Prices for June will be released at 8:30 ET while the Business Inventories report for May will be reported at 10:00 ET (consensus 0.2%).
  • Nasdaq Composite +7.1% YTD 
  • Russell 2000 +5.1% YTD 
  • S&P 500 +2.0% YTD 
  • Dow Jones Industrial Average +0.9% YTD

(NY Post) Relativity Media misses deadline to pay creditors — again

Relativity Media misses deadline to pay creditors — again

Ryan Kavanaugh’s cash-strapped Relativity Media missed another deadline to pay its creditors, The Post has learned.
The mini-Hollywood studio — known for movies like “Paul Blart: Mall Cop” — did not meet the July 9 deadline to pay creditors $320 million in past due debt. It had previously missed deadlines in May and June.
The studio now faces a possible bankruptcy.
However, creditors have tentatively agreed to give Kavanaugh a few more weeks to secure some equity financing. If successful, he might get as much as a one-year extension on the debt. “The company is still in a tough battle,” one source said.
Last week, there was a report that Catalyst Capital was prepared to buy out some creditors to help save Relativity. But that is not necessarily happening.
“It’s so messy,” said a second source. “He did miss the deadline and he didn’t get the money. I think Catalyst probably said we’ll put up the money to buy out the debt if you can get someone to come in with equity.”
Kavanaugh isn’t believed to have found an investor to provide equity to keep the company’s wheels turning.
Last week, Relativity pushed back the release of “Masterminds” to Oct. 9 from Aug. 19 amid chatter that it didn’t have the cash to properly promote the movie.
A Relativity spokesman declined to comment.

>>> Greece upcoming dates

Greece upcoming dates 
- Mon July 13th €458M IMF payment (delayed along with a month's worth of bundled payments already)
- Tue July 14th ¥11B Samurai bond payment expected
- Tue July 145h ECOFIN meets
- Wed July 15th European institutions deadline for passage of austerity measures through the Greek Parliament (expected to pass by more than 2/3 majority)
- Thur July 16th ECB to meet again and discuss raising ELA ceiling for Greek banks (Banking Holiday extended through Wed currently)
- Fri July 17th Scheduled vote in German parliament (Germany, Austria, Netherlands, Finland, Slovakia and Estonia to hold votes as well)
- Sun July 19th Monthly bond interest payments due ~€300M
- Mon July 20th €3.5B ECB bond payment due (30-day grace period?)
- Aug 8th Greece to roll over €1B in Treasury bills