TheChek News Flow

In the current crop of new-media companies touting their ability to attract young audiences, perhaps none has generated as much buzz—or as much interest from traditional media firms—as Vice Media.

The company, known for its edgy reporting on everything from war zones to hallucinogens, has drawn investments from or forged partnerships with media giants including 21st Century Fox, Time Warner Inc. and A+E Networks, a joint venture of Walt Disney Co. and Hearst Corp. It is on the verge of getting its own TV channel in a deal with A+E that could be announced as early as Tuesday, according to people familiar with the matter.

Last month, Vice Media Chief Executive Shane Smith told CNBC that the company’s revenue was on track to hit nearly $1 billion this year, and that it was in acquisition talks with “everybody” at a valuation of $5 billion.

But people familiar with the financial information Vice has been sharing with potential investors say that the company’s revenue this year is on track to be less than $500 million under generally accepted accounting principles, or GAAP, up from about half of that in 2014.

A Vice spokesman said the company’s projection of $1 billion in revenue could include business booked this year but which will produce revenue at a later date.

“We don’t view any discrepancies,” said a Vice spokesman. “We’re on pace to book a billion dollars. That level of activity includes bookings and revenue that get delivered this year, and it would also include activity this year that results in near-term commitments going forward.”

He added that by traditional accounting methods, the delay of the planned TV channel, which had been in the works for some time but hit roadblocks, resulted in less revenue than the company would have otherwise generated.

Many companies provide metrics about their businesses that don’t hew to GAAP style. They often use terms like “bookings,” “managed revenue,” or “gross sales” to refer to the money generated by their products or services in a given year, even if that includes payments that won’t actually be received until the following year, or cash they must share with partners.

Public companies are required to report metrics on a GAAP basis, but that rule doesn’t apply to closely held companies like Vice.

By any measure, Vice’s revenue is robust compared with other new-media companies like BuzzFeed and Huffington Post, which is part of Verizon Communications Inc.’s AOL unit. The company’s ability to double its revenue in a year and to reach the hard-to-get young male audiences that are fleeing traditional TV underscore why it is the object of fascination by media behemoths that own TV channels.

Interest in the company has been strong: In addition to past investments by the likes of 21st Century Fox and A+E, Vice is now in talks to receive an additional investment of roughly $200 million from Disney and transfer another roughly 7% of its equity to A+E, according to people familiar with the matter. Wall Street Journal publisher News Corp and 21st Century Fox were part of the same company until mid-2013.

In August 2014, A+E agreed to buy about 10% of the company for $250 million, valuing it at $2.5 billion. At the time, the plan was for Vice to take over a channel in A+E’s portfolio, say people familiar with the matter.

By the spring “upfront” season, when TV channels typically present their programing for the coming season to advertisers, five out of the top six pay-TV distributors—who have to sign off whenever a programmer wants to rebrand a channel—had given their approval. But DirecTV was a holdout, according to people familiar with the matter.

That made Vice feel confident enough to pull a bold stunt, even by the standards of a media company famous for sending Dennis Rodman to North Korea: it pitched a standing-room-only loft full of advertisers on a channel that had neither a launch date nor a place on the TV dial. The shows that were presented were said to be coming in the fall.

With fall now slipping toward winter, A+E and Vice are on the cusp of announcing the long-anticipated deal. A+E will turn its H2 channel into the Vice channel by next spring, the people familiar with the matter say. As part of the deal, Vice will get nearly half of H2 in exchange for giving A+E an additional Vice stake, bringing A+E’s total ownership to more than 15%, according to the people said.

The valuations of Vice and the new TV channel in the latest transaction weren’t clear. The average valuation of a stand-alone cable channel sold over the past two years was $446 million, according to research firm SNL Kagan. But industry executives say that H2, a profitable channel with a reach into 70 million households, is worth considerably more.

In addition to its many major media-company partnerships, Vice struck a deal with Verizon this summer to make video content for its coming mobile video service. Other partners include Snapchat, Live Nation, YouTube and Samsung. In the U.S., Web traffic to Vice’s various online properties hit 61 million unique visits in September, up from 39 million a year earlier, according to comScore; globally it was 96 million in August.

In addition to the new U.S. channel, Vice plans to launch between 10 and 15 international channels next year, according to one Vice executive. It already operates in more than 30 countries.

We upgrade GSK to Neutral from Underperform and maintain our 1450p price objective.

Key to our upgrade are: 1) Valuation: The stock is now trading c18% off its April highs

and c8% below our unchanged 1450p price objective (assumes 5.5% yield and 17x 17E

PE) offering c14% total return with the c6% dividend yield, albeit less than the 23-25%

we see for our Buys in the sector; 2) Excepting further Fx volatility, underlying EPS

momentum may be bottoming. Consensus EPS estimates for 2015/2016 are now

broadly in line with ours, having fallen c20% this year and having more than halved since

early 2012; 3) 17-20E EPS growth back in line with the sector at 9% as GSK exits the

earnings trough and Consumer/Vaccines synergies, ViiV (HIV), and Nucala (mepolizumab)

launch drive a return to growth; 4) Pipeline activity increasing to end-2016 with three

PIII and one PII readout of interest expected and a Nov 3rd 2015 R&D day expected.

Rolling forward our sector valuation comps to 17E PE and 17-20E EPS CAGR reveals

GSK as having EPS growth in line with the sector over our valuation period. Importantly

we model US generic Advair launching in 2017 depressing 17E EPS growth to 2% but

thereafter we forecast 17-20E sales CAGR 5.2%, EBIT 8.6% and EPS 9.3% driven by: 1)

Consumer/Vaccines merger synergies and new products (Shingrix/Bexsero) driving

respective EBIT growth of 18% and 11% respectively; 2) ViiV (HIV) EBIT growth 8% due

to Tivicay/Triumeq growth (peak sales now $7bn or £4.7bn); 3) Nucala (mepolizumab,

antiIL5, severe asthma) launch in late 2015/early 2016 (2020 sales £1.3bn).

However, despite these potential positives we remain concerned about GSK’s balance

sheet which remains stretched, offering little strategic flexibility and presents risk to the

dividend beyond 2017. Including pension provisions and GSK’s Consumer and ViiV JV

partners’ options to put their shares to GSK, GSK’s 16E net debt to EBITDA ratio is 3.5x.

We forecast slow balance sheet recovery given GSK’s promised 80p dividend 15-17E

exceeds forecast FCPS of 53p in 2015 and 63p in 2016.

We upgrade Danone to Buy on: (1) higher conviction in a Dairy recovery; (2) forecasts of

prodigious growth in Nutrition into 2016; and (3) improving capital allocation with a

focus on ‘white space’ in Waters. We believe these factors imply risk is moving in

investors’ favour and leverage to a recovery is underestimated. Our EPS upgrades place

us +4-7% ahead of cons. in FY15-17E and imply a 3yr EPS CAGR of 11% (> Staples avg.

at 9%). BN currently trades at 10-20% discounts to the sector on 19.4x P/E and 11.1x

EV/EBITDA. Considered on a SOTP, this implies a 3.0x 16E EV/EBITDA multiple for Fresh

Dairy (vs. peers’ average of 11x). We expect a re-rating as confidence returns and raise

our PO to €73, implying 16% upside potential (with Fresh Dairy on 6.5x EV/EBITDA).

We are encouraged by signs of stability in the EU yoghurt market (post 3yrs of decline)

and a reacceleration in N America (as per Nielsen data). We expect Danone’s sales to

recover to growth of +3.25% by 18E in (from +0.4% in FY15E), driven by 5% growth in

key brands and EMs. We also forecast a margin recovery to 12% by 19E (from 9.7%

FY15E) on lower A&P spend (vs. ‘15), op. leverage and mix, more than offsetting 15%

assumed milk price inflation.

ELN has bucked the recent trend of weakness in China with a 400bp OSG beat in Q3’15.

We forecast +2% for Q4’15 (vs. +28% Q4’14), implying +8.5%/10.8% OSG in FY15E

/FY16E as BN continues to leverage its positioning in ecommerce to outperform peers.

We are optimistic that Danone’s strategy of small deals and commitment to a 4-5%

capex/sales imply capital discipline. In our view, capital could be invested in sustaining

Waters’ growth (11% 5yr CAGR). We look for confirmation at the CMD on 16th Nov.

Our DCF-based PO (7.5% WACC, 2.25% terminal growth) rises to €73 from €55 on

upgrades & lower risk, implying 22.5x P/E and 12.6x 16E EV/EBITDA (vs 22x for Staples).

Strategically: BofAML base case = “deflationary expansion”; slow, jerky transition to

higher growth/higher rates, led by the US, China soft landing; AA = long US dollar, long

volatility, long real estate, long stocks/short bonds, UW EM, commodities; higher

conviction requires unambiguous Q3 trough in GDP & profits, XLF>$26 & ADXY>110.

Tactically: “sellers into strength” as our trading rules flip from “buy” to “neutral” & Fed

hike approaches…December could be the first time since May’94 (a year of bond

crashes, defaults & most intriguingly, a weak US$), that investors experience a Fed rate

hike & a European rate cut in the same month (see Chart 1).

The “tail risks” to “deflationary expansion” are high. Like a game of Jenga, a bull market

built by central banks can collapse if further BoJ/ECB QE and Fed hikes engender US

dollar spikes & US EPS & EM/commodity swoons, FX-wars & volatility rather than a fullblown

recovery. Gold & volatility are the natural hedges to the bearish scenario of

“Quantitative Failure.”

Alternatively, a world dominated by (ineffectual) QE, technological disruption &

inequality could cause excess 2016 valuations in “uber growth” (tech, CA real estate,

“unicorns”), a rally in “uber value” & a “pop” in “yield” & “shadow banking” as rates

belatedly rise to curb Wall Street excesses. As in 1998/99, we think a bold “über-barbell”

would outperform in this environment.

CS

ABF -1-2% EPS 3% ahead of CS, Chairmans outlook statement negative

Com Hem -1-2% Q3 revs 1% light, EBITDA 1.5% light

Direct Line +1% Premiums 3% better, cost base 3-4% lower, reiterate FY

Dufry -2-3% EBITDA inline, Q3 LFL weaker, Net loss higher

Hunting -5% Weak market conditions, continuing operations decline

Imperial Tob +1% EPS 212.5 VS 207, debt lower & pricing good

Just Eat +3-4% Q3 LFL order growth inline, raises FY guidance

Kloeckner -3-5% Q3 already known, Q4 guidance for EBITDA disappointing

Miners +1% Copper +0.40%, Brent UNCH, Iron Ore -1.00%, China +0.08%

Nexans +1% Reached an agreement to sell its Argentinian operations

Pfeiffer Vac -1% Q3 sales slightly light and EBIT ahead, confirms forecasts

Prysmian +1% Announces that a US antitrust probe has now closed

Regus M/P Q3 sales 478.8m vs CS ests £487m, outlook positive

Sponda M/P Q3 sales light, revises 2015 prospects up slightly

Stan Char -4% Weak Q3, uninspiring strategy update, $5.1bn rights issue

TDC +1% 3Q EBITDA ahead, keeps 2015 outlook

Telenor -1% VIP making a provision of $900m, Telenor owns 33% of VIP

Weir -1-2% Sees FY 2015 Earnings Broadly In Line With Expectations

ML

* KLEPIERRE - BNP selling 20.5m shs, BNP, CS and UBS.........................

* STAN CHART - Underwritten $5.2bn rights issue, please call for details.....

DUFRY - Q3 EBITDA a 2% beat on strong top line (8% ahead), 10.8% short....+3%

CAIRN - Spec India to consider out of court settlement on CGT claim.......+3%

DUERR - Q3 EBITDA a 10% beat driven by strong sales, raises rev guide 6%..+2%

JUST EAT - Q3 order growth 48% v 42% MLe, now sees sales 2-3% above cons..+2%

DANONE - We DOUBLE UPGRADE to OURPERFORM, PO to EUR 73 from 55............+2%

DSM - EBIT an 8% beat v cons, nutrition top line strong,good cost control.+2%

DIRECT LINE - Premiums 3% ahead of MLe, cost base 6% lower than est.....+1-2%

WEIR - IMS in line and stock v weak into event, detail in call at 8am...+1-2%

TDC - Revs 1.6% light but EBITDA ahead and no comment of div cut, reits FY+1%

GAMESA - Wins order for turnkey construction of 200 MW in India...........+1%

IMP TOBACCO - FY results 1% ahead of cons, volumes poor as expected.....+0.5%

GSK - FT reports GSK rebuffed Pfizer before PFE approached Allergan.......u/c

ICADE - Buys portfolio of 16 clinics for EUR 606m.........................u/c

FUCHS PETROLUB - Q3 EBIT a 5% miss driven by sales 3-4% light, reits FY...u/c

HUGO BOSS - All in line with pre-announcement, conf call at 2:30 UK time..u/c

KLOECKNER - Q3 numbers in line w pre-release, Q4 guide implies small d/gs.-1%

TELENOR - Vimpelcom to take $900m Q3 provision on investigations..........-1%

D. BOERSE - We DOWNGRADE to Neutral, PO to EUR 88 from 90.................-1%

ADP - Q3 sales 2% below ests, passenger traffic +8.2% in Q3...............-1%

STRAUMANN - We DOWNGRADE to Neutral, PO to CHF 300 from 320...............-1%

KERRY GROUP - Small miss on group org sales, guidance reiterated..........-1%

AB FOODS - Op profit 5% beat on sugar, guide implies small cons d/g on FX.-1%

INFINEON - Spec frontrunner to land FCS US as it is highest bidder........-1%

VW - FT reports cheating scandal spreads to Porsches, VW denies...........-3%

HUNTING - Another very poor set of numbers, v weak into event.............-5%

ShoreCap:
STAN.CHARTERED - Q3 loss $139m,£3.3bn rights issue at 465p,scraps final divi.MKT

GLAXO - rebuffed approach from Pfizer in recent weeks before Allergan talks..+1%

IMP'S - growth brand vol +7%,oper pft +2.4%,divi +10%,well placed............+2%

HUNTING - Q3 remained subdued,ytd oper.pft -85%,assumes FY profits -90%......-5%

REGUS - Q3 revs +17.3% £478.8m,cash generation strong,strong pipeline........+1%

AB FOODS - FY pbt 717m.Divi 25p.Currency pressures leads to op pft decline...-2%

WEIR GRP - Oil&Gas margins slightly lighter.FY earnings expectations in line.-2%

JARDINE LLOYD - Cuts views for group profits in 2015.........................-4%

PENDRAGON - Expects 2105 fy performance to be in line with views............UNCH

JUST EAT - Q3 LfL order growth 48%,Raises FY forecast........................+3%

K3 BUS.TECH - wins major contract from K-Mail Order GmbH.....................+3%

DIRECT LINE - premiums +1.3%,stronger growth in Motor than Home,inline......UNCH


Mainfirst:
*IFX-Said to be front-runner to buy Fairchild,lining up finance...........-1%

*UBS-NI 2.07b(1.73),WM PT 639m(690.9),IB PT 496m(330.1),tgts pushed out...-1.3%

*FUCHS-Sales 531.2m(550.5),Ebit 89.3m(93.8),PT 62.1m(64.1),confd guidance.-0.5%

*DUFRY-Rev 1.99b(1.84),Ebitda 271.3m(263.9),Nuance intergration on track..+2%

*STAN CHART-To raise £3.3bln via rights issue,STK -3.9% in HK.............-3%

*DSM-Ebitda 287m(283),Rev 1.945b(1.93),c/reduction details tmrw...........+1%

*DUERR-Sales 988.2m(894.88),Ebitda 101.8m(93.1),FY Sales higher...........+2%

*VONOVIA-Raises FY f/casts 590-600m(560-580),9m Rental Inc 1.02b..........+1.5%

*ADP-Sales 772m(789),sees FY traffic grth equal to or above 3%............-0.5%

*P/VAC-Sales 114.5m(115),Ebit 15.3m(15),NI 10.6m(11),FY Confirmed.........+1%

*KLOECKNER-Rev 1.59b(1.64),Ebitda 28m(27),Ebit 5m(1.8),FY Confirmed.......-0.25%

*TDC-Rev 5.9b(6.02),Ebitda Ex Items 2.54b(2.47),Ebit 1.22b(1.18)..........+1%

Standard Chartered’s new boss Bill Winters has promised quick action after the troubled bank reported its first quarterly loss since the Asian financial crisis and announced a highly dilutive $5.1bn rights issue.

The emerging markets-focused bank undershot analysts’ consensus expectations of a $913m pre-tax profit and instead reported a $139m loss for the three months to the end of September. That compared with pre-tax profit of $1.5bn in the third quarter last year.

StanChart’s Hong Kong-listed shares were 2.5 per cent lower at HK$83 a share in mid-afternoon trade, having fallen more than 5 per cent to HK$79.9 soon after the announcement on Tuesday.

A 12 per cent year-on-year drop in revenues to $3.7bn was exacerbated by a doubling of impairment charges from the same period last year to $1.2bn, dragging the bank to its first quarterly loss since at least 1998.

The bank blamed the charges on “continued adverse trends in particular in India and commodities”.

StanChart’s UK-listed shares have halved in the past two years as investors feared it had lost its way just as the emerging markets its business is based upon are slowing.

“The business environment in our markets remains challenging and our recent performance is disappointing,” said Mr Winters, who joined as chief executive in May after Peter Sands, the bank’s long-time leader, stepped down amid shareholder dissatisfaction.

Tuesday’s update included details of a long-awaited strategic review including plans to tackle $100bn of risk-weighted assets that would either be restructured or reduced in the next three years.

Mr Winters described the plans as “aggressive and decisive”.

The strategy will include a shift to focusing on developing its wealth management and private banking businesses while scaling back its corporate and institutional side.

“It is not a fundamental shift but I think the impact will be fundamental,” Mr Winters said. “Our corporate and institutional business — and commercial to some extent — have been characterised by the most capital intensive approach one might take ... without being as focused on returns.”

Mr Winters said the bank had been too focused on revenue growth in the past and not worried enough about return equity as he revealed the most aggressive restructuring plan in the bank’s history.

The bank has beefed up its cost cutting programme from $1.8bn to $2.9bn over three years. It plans to make a gross reduction of 15,000 jobs in its workforce of 90,000 people, most of who are spread across Asia, the Middle East and Africa as well in as its London headquarters.

Revenues from corporate and institutional clients in the third quarter fell 18 per cent year-on-year to $2.1bn. The bank said its efforts to target only more profitable business and better manage existing assets led to “weak momentum”.

Roughly a third of revenues are retail-based, according to CLSA, while 57 per cent come from its corporate side.

The $100bn of risk-weighted assets under threat include non-strategic businesses that the bank wants to exit, as well assets now deemed too risky.

The rights issue will offer existing shareholders two shares for every seven held at 465p a share, a 34.8 per cent discount to Monday’s 713.6p close. The price represents a 29.4 per cent discount to the shares’ theoretical price following the dilution.

Temasek, Singapore’s state investment fund and the bank’s largest shareholder, plans to exercise its rights for its 15.8 per cent holding.

Standard Chartered said the rights issue would raise its core equity tier one ratio — a key measure of capital strength — to 13.1 per cent as measured by its June half-year books, from 11.5 per cent. The bank is targeting a ratio between 12 and 13 per cent.

JPMorgan Cazenove and Bank of America Merrill Lynch are underwriting the rights issue.

Vivendi has denied that it is in talks with potential partners about mounting a bid for Telecom Italia, saying that its investment in the Italian operator has not been made in concert with anyone else and ruling out the possibility of making an offer for the company.

Arnaud de Puyfontaine, chief executive of Vivendi, Telecom Italia’s biggest shareholder, said: “Since we increased our stake, there has been a lot of speculation of Vivendi playing on behalf of Orange . . . but it has never been on the agenda. There has not been any discussion between Vivendi and Orange.”

French media had reported that the Paris-based group had talked with other investors, including Orange and Egyptian telecoms billionaire Naguib Sawiris over Telecom Italia’s future.

The reports came days after Xavier Niel, the French telecoms tycoon, also entered the fray via options that could give him a stake of more than 15 per cent in Italy’s biggest mobile operator.

“The situation both for Niel and for Naguib Sawiris is the same answer: there has not been a discussion with them about Telecom Italia,” said Mr de Puyfontaine.

He did not rule out the possibility that Vivendi, which has spent more than €3bn in recent months ramping up its stake in Telecom Italia to more than 20 per cent, could increase its holding further to hit the 24.9 per cent threshold before an investor must make a public offer for the whole company.

“It would not be wise to dismiss any options,” he said. “Never say never.”

But he added: “It is not at all on the agenda. It would not be consistent with our position not to become owners of telecoms operations.”

The news comes as pressure mounts on Matteo Renzi, Italian prime minister, to comment on the arrival of the French investors in a company that has long been considered a strategic asset.

Maurizio Gasparri, Italian senator for the centre-right opposition, said: “It is useless to minimise the Telecom situation. The new foreign shareholders will have a decisive role and for this reason the situation needs to be brought before parliament.”

Italy’s state financing agency Cassa Depositi e Prestiti was also forced on Monday to issue a denial that it plans to meet Mr Niel or Vincent Bolloré, Vivendi’s chairman.

CDP, a €410bn state-agency backed by postal savings, said it had “no meetings planned with Xavier Niel or his representatives or Vivendi”.

The denial comes against a backdrop of talks between Metroweb, a CDP-owned network provider, and Telecom Italia about jointly investing in Italy’s underfunded ultrafast broadband network. Mr Renzi said in May that improving Italy’s broadband network was of “strategic” importance.

Analysts and some investors have privately questioned Vivendi’s strategy of seeing Telecom Italia as a channel for distributing content from Canal Plus, its pay-television business, and the music catalogue of its Universal Music Group.

But Mr de Puyfontaine was adamant that the operator was part of a long-term distribution strategy. “There are common initiatives between Telecom Italia and Vivendi around bringing content to customers. Having this stake is not getting back in the telecoms business,” he insisted.

Commenting on Mr Niel’s recent investment in options that if exercised would turn him into Telecom Italia’s second-biggest shareholder, Mr de Puyfontaine said: “From my perspective, it does not change our vision for the potential of Telecom Italia.”

He added: “Do we see it as a hindrance? Not at all. It just confirms that we were right about building a position in TI.”

Nikkei Closed today Hang Seng +1.08% Shanghai -0.23%

Eur$ 1.1026 JPY 120.66 CNY 6.3373 GBP 1.5428 ERUCHF 1.0876 RUB$ 63.79 WTI $46.17 (+0.04%)

S&P -0.08% EuroStoxx Dax SMI FTSE +0.40%

Macro :

- ECB’s Villeroy: Commitment to Active Monetary Policy Is Strong

- French Air Crash Investigator Sends Second Team to Egypt: AFP

- Bernstein Initiates With Positive View on European Equities

Keep an eye on :

- ABI BB : Molson Coors Said in Advanced Talks to Buy SAB’s JV Stake: FT

- ADP FP : ADP 3Q Sales Miss Est., FY Targets Reiterated

- AIR FP : Air France Met Friday With Biggest Pilots Union SNPL: AFP

- ATC NA : Altice Media acquires Strategies, Coiffure de Paris, and Cosmetique Mag magazines - Le Figaro

- AMAG AV : AMAG 3Q Net Drops 32% on Aluminium Prices; Outlook Adjusted

- BG/ LN : *SHELL BG TRANSACTION ON TRACK FOR COMPLETION IN EARLY ’16

- BMW GY : BMW 3Q Profit Beats Est.; FY Forecast Confirmed

- COFA FP : Coface 9-Month Net EU98.3M Vs Restated EU103m

- CBK GY : Commerzbank to Name Chromik Risk Chief: Handelsblatt

- CSGN VX : CS Said to Name Seth Head of EM for Inv. Banking, Cap. Mkts: FT

- DSMA NA : DSM 3Q Sales, Ebitda Slightly Beat Ests.; Confirms 2015 Outlook

- DUE GR : Duerr 3Q Sales, Operating Ebit Rise; Increases 2015 Forecasts

- DUFN SW : Dufry 3Q Rev., Ebitda Beat Ests.; Nuance Integration on Track

- FPE3 GY : Fuchs Petrolub 3Q Sales Miss Ests.; Reiterates 2015 Outlook

- GSK LN : Pfizer spurned by GSK before Allergan talks http://on.ft.com/1Rqr7NN

- BOSS GY : Hugo Boss Sees 4Q Gross Margin Improvement, Reiterates Forecast

- ICAD FP : Icade Sante Buys 16 Clinics for EU606m

- IFX GY : Infineon Said to Be Frontrunner to Land Fairchild Semi

- KCO GY : Kloeckner Misses 3Q Targets as Prices Fall, Demand Slows

- MMB FP : Lagardere Studios could raise EUR 100m via 30% stake sale - Les Echos

- OCY NO : Ocean Yield 3Q Net Income Misses Est.; Declares 15.75c/Share Div

- PFV GY : Pfeiffer Vacuum 3Q Sales Rise 17%, EPS Up 44%; Confirms Outlook

- PNL NA : PostNL Sees Gradually Improving Results From 2016-2020

- RNO FP : Nissan to Contribute EU524m to Renault’s 2H Net Income

- CFR VX : Cartier CEO Said to Be Off Work Due to Illness, Reuters Says

- UBSN VX : UBS 3Q Net Income Beats Estimates; CET1 Ratio 14.3%, UBS CEO Says Outlook Remains ‘Very, Very Challenging’: CNBC

- VIV FP : Vivendi Says Not in Talks With Partners on Telecom Italia Bid

- VOW3 GY : Volkswagen Put ‘Defeat Devices’ on 3L Engines, EPA Says

- VOW3 GY : Volkswagen Ordered to Meeting by California on New Violations

- VOW3 GY : VW Denies EPA Claim Alleging Manipulation Software in V6 Engines

- VNA GY : Vonovia 9M FFO Per Share Rises 14%, Co. Raises 2015 Forecast

- WPP LN : WPP’s GroupM Said to Near Deal to Buy Essence Digital: WSJ

*SEPLAT PETROLEUM RAISED TO BUY VS NEUTRAL AT CITI

*WILLIAM HILL RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS

>>> Down

*APPLUS CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN

*BARRATT CUT FROM HOLD AT TO SELL LIBERUM

*HOLMEN CUT TO ’HOLD AT NORDEA

*L’OREAL CUT TO HOLD VS BUY AT SOCGEN

*LUNDIN PETROLEUM CUT TO SELL VS NEUTRAL AT CITI

*MUNICH RE CUT TO NEUTRAL VS BUY AT ODDO

*PERSIMMON CUT FROM HOLD RO SELL AT LIBERUM

*PROSAFE CUT TO SELL VS HOLD AT PARETO

*TULLETT PREBON CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS

*TAYLOR WIMPEY CUT FROM HOLD TO SELL AT LIBERUM

>>> PT Change

>>> Initiation

*PADDY POWER RATED NEW OVERWEIGHT AT BARCLAYS, PT EU104

*SOPHOS GROUP RATED NEW BUY AT PEEL HUNT, PT 330P

>>> Call

>> Stock

*MTU AERO, TELE COLUMBUS ADDED TO BANKHAUS LAMPE’S ALPHA LIST

*BBVA REMOVED FROM FSB LIST OF SYSTEMICALLY IMPORTANT BANKS

*SENIOR REMOVED FROM CITI UK SMALL & MID-CAP KEY BUY LIST

>> Sector

*EUROPEAN INSURANCE NOW PREFERRED TO BANKS AT CREDIT SUISSE

--> UBS : Europe Outlook 2016/2017 - see attached