REUTERS/Umit Bektas Turkish Prime Minister Ahmet Davutoglu (L), accompanied by his wife Sare Davutoglu, greets AK Party supporters during an election rally for Turkey's June 7 parliamentary election, in Kahramanmaras, Turkey, June 5, 2015.
Stringer ./REUTERSMembers of the Kurdish People's Protection Units (YPG) man a weapon mounted on a pick-up truck as they take position behind cement blocks in the Iraqi city of Rabia on the Iraqi-Syrian borderRead more: http://www.brookings.edu/blogs/order-from-chaos/posts/2015/07/02-would-turkey-invade-syria-shapiro-taspinar?rssid=LatestFromBrookings#ixzz3eju1WssM
2015-07-02 12:59:16.519 GMT
By Charles Daly
(Bloomberg) -- The pool of eligible corporate issuers for
ECB QE will likely encompass more utilities and other sectors,
especially if the Greece debt crisis takes a turn for the worse
after Sunday’s referendum, according to strategists and
economists.
* Earlier, Enel, Snam and Terna among borrowers whose debt may
now be purchased, according to the ECB’s website
* Affected issuers see bond spreads marked materially tighter
* Reflects fear that more needs to be done to support
region’sfragile economic recovery, writes Bloomberg’s Simon
Ballard
* RBS (Alberto Gallo)
* Could see wider range of corporate issuers being added
to list
* Other issuers ECB could buy in future incl. EDF, GDF
Suez, Tennet, Fortum
* Expansion shows ECB ready to act if necessary, on a
worsening of the Greek crisis
* More action possible with a “no vote” or escalation of
the Greek crisis; EUR IG corporate bond mkt is EU1.15t
in size
* More
* Barclays (Zoso Davies)
* Three of the names added (ENEL, SNAM and Terna) are
classified as utilities in Barclays Aggregate Indices
* Two factors common to all three names: they operate
infrastructure (utility) assets, and there’s part
ownership by the Italian govt
* Given lack of clarity over how names are added to the
ECB’s list, mkt will also price some probability of more
corporate issuers being added
* Repricing likely to be greatest for those issuers most
similar to the three incl. today: infrastructure/utility
names with govt involvement
* ABN AMRO (Hyung-Ja de Zeeuw)
* This opens the door for other national central banks to
add corporates to their eligible universe
* Shows ECB has taken more flexible stance toward the
adoption of new names, while sticking to its IG criteria
* Expansion amounts to 13 names with a total outstanding
amount of ~EU66b, of which EU51b matures between 2-30
yrs
* Names included are mostly from Italian (62%) , French
(17%) and Austrian (13%) origin
* If Bank were to add more utilities to its eligible
universe, could total little over EU100b
* ING (Jeroen Van Den Broek)
* Mario Draghi is overstepping the mark; these aren’t euro
agencies but rather cos. with some govt ownership
* QE should stay well away from euro corporate bond mkt
because it’s already very squeezed and illiquid; QE will
make that worse
* More
* JPMorgan (Greg Fuzesi)
* Highlights how ECB’s QE program has some internal
flexibility that’s still being exploited, both to
achieve intended purchase volume and its effectiveness
* Doubts the ECB will mind if today’s list expansion
creates impression it’s “willing and able to quickly
respond to any spillovers from Greece”
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Charles Daly in Stockholm at +46-8-610-0717 or
cdaly22@bloomberg.net
To contact the editors responsible for this story:
Jenny Paris at +44-20-3525-4044 or
jparis20@bloomberg.net
V. Ramakrishnan
In reaction to disappointing earnings/guidance: FC -0.3%, FDO -0.2%, ISCA -0.1%, .
M&A news: FRO -6.6% (merges with Frontline 2012 )
Select China related names showing weakness: CSUN -4.9%, CMCM -3.1%, JMEI -1.9%, WBAI -1%, .
Other news: WPCS -30.5% (following yesterday's ~95% move higher; also completes a series of transactions resulting in the elimination of all of its $1,703,000 principal amount of Unsecured Promissory Notes ), ANR -4.6% (subsidiary Pennsylvania Services Corporation, acquires a 50% interest in Pennsylvania Land Resources Holding Company for $126 mln), FIT -3.7% (cont vol post IPO), BTU -2.8% (appointed Amy Schwetz to Executive Vice President and Chief Financial Officer; replaces Michael Crews, who has announced plans to step down to take the top financial position at a major industrial firm), NBG -1.8% (cont vol surrounding Greece Referendum), QUNR -1.2% (confirmed final judgment in dispute with eLong (LONG)), EPRS -1.1% (filed for $125 mln mixed securities shelf offering)
Analyst comments: WU -4.5% (downgraded to Hold from Buy at Evercore ISI), CPST -2.5% (downgraded to Market Perform from Outperform at Northland Capital), BTU -2.3% (downgraded to Sell at Deutsche Bank
)
In reaction to strong earnings/guidance: PRGS +8.1%
M&A news: HNT +15.6% (to be acquired by Centene (CNC) for ~$78.57/share in cash and stock), PKY +3.3% (Bloomberg reporting that co is considering strategic options including a potential sale), CNC +2.6% , SYT +1.9% (cont spec on M&A with MON), AMBA +1.8% (acquires VisLab S.r.l., a privately held Italian company based in Parma, Italy for $30 million in cash ), CHK+1.5% (Privately-Held FourPoint Energy to acquire oil and gas assets from Chesapeake Exploration and CHK Cleveland Tonkawa for $840 mln), SSYS +1.1% (acquires RTC Rapid Technologies)
Other news: PVCT +24.5% (signs Letter of Intent with Boehringer Ingelheim (China) Investment to collaborate in bringing PV-10 to market in mainland China, Hong Kong and Taiwan), XOOM +22.5% (to be acquired by Paypal (PYPL) for $25/share, or ~$890 mln), AGTC +18.7% (Applied Genetic Technologies and Biogen (BIIB) enter into a collaboration and license agreement to develop gene-based therapies for multiple ophthalmic diseases), HNSN +17.5% (receives FDA 510(k) clearance for its Magellan 10Fr Robotic Catheter for use in the peripheral vasculature), ACRX +11.7% (reports that results from its IAP311 study have been published in the publication Anesthesiology), NAVB +8% (reports imaging results from its Manocept clinical trial and other preclinical studies), GRBK +6.7% (Form 4 filings indicate Third Point, Greenlight Capital, and company directors bought shares in 17 mln share offering of common stock at $10 per share announced on June 22), CFMS +6.7% (favorable commentary on Wednesday's Mad Money), ARO +4.9% (confirms expansion plans throughout Asia, with new licensing agreements in India and Indonesia), MBI +4.6% (strength on further reports regarding Puerto Rico successfully paying $1.9 bln in debt obligations), GTLS +4.3% (to replace IGTE in the S&P SmallCap 600), TSLA +4.1% (announces 11,507 Model S deliveries for Q2 2015), OFG +3.6% (strength on further reports regarding Puerto Rico successfully paying $1.9 bln in debt obligations), AMBC +3.6% (confirms that all payments due on its insured Puerto Rico bonds have been paid in full by the relevant issuer ), WLL +3.4% (announces results of exchange offer relating to outstanding, unregistered 6.25% Senior Notes due 2023), VNOM +3.1% (filed $1 bln common unit offering representing limited partner interests and for up to ~70.95 mln common units representing limited partner interests by selling unitholders), SPNC +3% ( reports that a federal court in California awards AngioScore $20 million plus disgorgement in breach of fiduciary duty case), BP +2.8% ( report suggesting pollution settlement from Gulf oil spill in 2010), WYNN +2.4% (Macau data), MGM +1.9% (Macau data), LVS +1.8% (Macau data), PBR +1.2% (to analyze strategic alternatives for its Petrobras Distribuidora subsidiary; also announced the sale of 20% of its interest in the concessions of Bijupirá and Salema fields), NSM +1.1% (Point72 Asset Management discloses 5.2% passive stake in 13G filing)
Analyst comments: GRUB +4.3% (upgraded to Outperform at RBC Capital Mkts), LLNW +1.8% (initiated with an Outperform at Cowen), TEX +1% (upgraded to Neutral from Underperform at BofA/Merrill), T +0.8% (upgraded to Outperform from Market Perform at Cowen), AZN +0.6% (upgraded to Buy from Hold at Berenberg
)
+------------------------------------------------------------------------------+
BFW 07/02 10:45 K+S Said to Reject Takeover Proposal by Rival Potash Corp.
+------------------------------------------------------------------------------+
K+S Said to Reject Takeover Proposal by Rival Potash Corp. 2015-07-02 10:43:09.696 GMT
By Aaron Kirchfeld, Andrew Noël and Sheenagh Matthews (Bloomberg) -- K+S AG, the German potash supplier, plans to reject a takeover offer from Canadian fertilizer producer Potash Corp. of Saskatchewan Inc. because it deems the bid to be too low, according to people familiar with the matter. The German company is preparing to announce its opposition to the bid as early as today, said the people, who asked not to be identified because the matter is private. A representative for K+S declined to comment.
For Related News and Information: Intrepid Shares Surge as PotashCorp Bid for K+S Stirs M&A Talk Potash Cuts Earnings Outlook on Higher Taxes, Foreign Income Uralkali Agrees on Potash Shipments of 850,000 Tons to China K+S Says 75% of Legacy Mine Spending is Secured, Reducing Risk Top Stories: TOP <GO>
To contact the reporters on this story: Aaron Kirchfeld in London at +44-20-3525-8830 or akirchfeld@bloomberg.net; Andrew Noël in London at +44-20-3525-2304 or anoel@bloomberg.net; Sheenagh Matthews in Frankfurt at +49-69-92041-217 or smatthews6@bloomberg.net To contact the editors responsible for this story: Simon Thiel at +44-20-3525-2814 or sthiel1@bloomberg.net; Aaron Kirchfeld at +44-20-3525-8830 or akirchfeld@bloomberg.net Aaron Kirchfeld
+------------------------------------------------------------------------------+
BN 07/02 10:16 *EU: COMMISSION IS NOT PART OF THE GREEK REFERENDUM CAMPAIGN BN 07/02 10:14 *EU NOTES COMMENTS BY COUNCIL OF EUROPE ON GREEK REFERENDUM BN 07/02 10:12 *EU'S SCHINAS WON'T SPECULATE HOW CLOSE GREEK TALKS WERE TO DEAL BN 07/02 10:12 *EU'S SCHINAS WON'T SPECULATE ON HOW CLOSE GREEK TALKS WERE BN 07/02 10:11 *EU SPOKESMAN SCHINAS SPEAKS TO REPORTERS IN BRUSSELS BFW 07/02 10:11 *EU SAYS NOW IS THE MOMENT FOR THE GREEK PEOPLE TO CHOOSE FUTURE BN 07/02 10:10 *EU SAYS JUNCKER HAS GREEK PEOPLE IN HIS MIND
+------------------------------------------------------------------------------+
*EU SAYS THERE WILL BE NO FURTHER TALKS BEFORE REFERENDUM 2015-07-02 10:11:05.514 GMT
--JONES HAYDEN
-0- Jul/02/2015 10:11 GMT
S&P 500 Index – clearly bearish below 2,080-2,084
· Two major developments this week which suggest that the Index should continue and drift lower over time:
1) Monday's sell-off broke the 2,067 low, the break negates the path of higher highs and higher lows established on the chart since October 2014.
2) The break below 2,067-72 also triggered a bearish H&S pattern, the pattern targets a move to 2,025. The neckline of this pattern is 2,080 and while the index holds below it a move lower should only be a matter of time. The Index did have an intra-day bounce above this level in yesterday trading session but stalled at the 38.2% Fibonacci retracement level at 2,084 and eventually closed below it. I cannot rule out further choppy price action around 2,080 but eventually believe we move lower
· Support now is this week low and the 200dma at 2,054-2,056, a break below this level targets 2,025
· Again, from a longer term perspective, I continue to favor a much deeper retracement (correction for the 2011-2015 bull cycle) and expect a minimum retracement to 1,885 over the months ahead. For charts and further explanation please refer to previous recaps on the Index.
Strategy: Short 2 units from 2,119, target 2,025 and 1,885 with a stop loss at 2,140
[cid:image001.png@01D0B4BD.56174A90]
VIX Index – Bullish above 14.02-14.90
· The Vix it trying to fill the gap from Monday which stands at 14.02-14.90
· While it remains unclear if we fill the gap Monday's impulssive breakout confirms a bullish wedge pattern, the pattern target is 26.15 and I believe we reach this target in the weeks to come.
[cid:image002.png@01D0B4BE.06DC6F40]
2015 TECHNICAL TRADE IDEAS
[cid:image003.png@01D0B4BE.06DC6F40]
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BFW 07/02 07:56 *EUROGROUP SAYS RESERVES RIGHT TO ACCELERATE GREEK LOANS BN 07/02 07:56 *EUROGROUP TO CONSIDER POSITION ON LOANS REGULARLY BN 07/02 07:55 *EUROGROUP CHIEF DIJSSELBLOEM SAYS IN STATEMENT TO PARLIAMENT
+------------------------------------------------------------------------------+
*EUROGROUP SAYS RESERVES RIGHT TO ACCELERATE GREEK LOANS 2015-07-02 07:55:56.300 GMT
--RICHARD BRAVO
-0- Jul/02/2015 07:55 GMT
