(BFW) Greece May Have Capital Controls by Monday If No Deal Struck: CS

Greece May Have Capital Controls by Monday If No Deal Struck: CS
2015-06-26 06:50:12.546 GMT


By Deborah L Hyde
(Bloomberg) -- If a deal to unlock aid for Greece isn’t
struck over the weekend, we don’t exclude capital controls by
Monday, Credit Suisse analysts write in a client note.

* The costs of failure for all parties are too high for there
not to be an agreement to extend Greece’s program
*
* The primary risk is that the Greek parliament baulks at
the terms demanded by the creditors; although this
hurdle can be cleared, albeit with the possibility of a
messy political realignment
* A deal should be finalized over the weekend, in order to
allow the Greek Parliament and the Bundestag to vote by
Tuesday
* The real hard deadline is actually Tuesday, when bailout
program extension expires
* NOTE: Merkel says weekend talks on Greece "decisive"


For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Deborah L Hyde in London at +44-20-3525-4829 or
dhyde10@bloomberg.net
To contact the editors responsible for this story:
Deborah L Hyde at +44-20-3525-4829 or
dhyde10@bloomberg.net
Charles Daly

(BFW) Tungsten CEO May Take Co. Private, FT Says (Earlier)

Tungsten CEO May Take Co. Private, FT Says (Earlier)
2015-06-26 06:44:14.515 GMT


By James Ludden
(Bloomberg) -- Edi Truell, CEO and largest shareholder, may
be planning to take Tungsten private, FT reports in City Insider
column.

* Stock down 75% since 2013 IPO, hard for e-invoicing co. to
raise fresh capital


For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
James Ludden in London at +44-20-3525-2645 or
jludden@bloomberg.net
To contact the editor responsible for this story:
Andrew Rummer at +44-20-3525-3722 or
arummer@bloomberg.net

(BofA-ML) The Flow Show : 2nd cons. week of rotation out of Bds into Eq.

>>> Asset Class Flows
- Equities: $4.6bn inflows (inflows in 4 out of past 5 weeks) (note $6.3bn ETF inflows vs $1.8bn mutual fund outflows)
- Bonds: $3.8bn outflows (largest 3-week outflows since Jul’13)
- Precious Metals: $0.3bn inflows (largest inflows in 8 weeks)

>>> Equity Flows
- Japan: $3.0bn inflows (inflows in 17 out of past 18 weeks)
- EM: $1.7bn inflows (note divergence between $3.1bn ETF inflows and $1.4bn mutual fund outflows)
- Europe: $3.4bn inflows (largest inflows in 11 weeks)
- US: $4.6bn outflows (first outflows in 4 weeks)

>>> Fixed Income Flows
- 9 straight weeks of outflows ($1.4bn) from govt bond funds (longest outflow streak since Jan’13)
- 5 straight weeks of outflows from EM debt funds (albeit modest $0.3bn)
- 2 straight weeks of IG bond outflows ($1.9bn)
- Tiny HY bond outflows ($67mn) (3rd straight week)
- Chunky outflows from bank loans ($0.4bn)
- First inflows to TIPS in 5 weeks ($0.2bn)


Analysis :

Talking Points
* Rotation to Stocks: 2nd consecutive week of equity inflows ($4.6bn) & bond
redemptions ($3.8bn)
* Bond exit: biggest 3-week outflows ($20bn) from all bond funds since Jul’13 (Chart
1); 2nd consecutive week of IG redemptions ($1.9bn), follows 77 weeks of
uninterrupted inflow; longest streak of government bond outflows since Jan’13; 5th
straight week of EM debt outflows
* Rotation from US to EAFE: inflows to Europe & Japan, outflows from US equities,
extending YTD trend: $109bn US equity outflows versus $95bn of EU & Japan
inflows
* From Feast to Famine: end of Excess Liquidity = end of Excess Returns = end of
Excess Positioning in "Yield" theme; end of ZIRP means assets with massive
inflows/returns at risk from "vicious cycle" of redemption/losses; in our view most
vulnerable = MLPs, IG, REITs, Dividend Yield funds, HY (in that order – Chart 2);
less vulnerable to investor exodus are EM debt (price unwind past 2 years), gold
and TIPS (price unwind, lower inflows).

(CS) European hotels : 3 compelling HOLT perspectives on Whitbread

3 compelling HOLT perspectives on Whitbread
■ Feedback from CS Hotel Event: This week we hosted our 5th Annual Hotel Lunch attended by investors and representatives from InterContinental, Whitbread, STR Global and Credit Suisse HOLT®. Key topics included the stage of the cycle, room growth, operational leverage, industry consolidation, technology challenges and the outlook in China (see pages 2-8 for summary discussion points interspersed with HOLT®, STR and our own recent analysis). Our top pick remains Whitbread (O/P, TP 6200p) supported by positive growth, returns and valuation, all illustrated by Credit Suisse HOLT®.

>>> What to look at today - 26th of June 2015

Dow-0.42% S&P-0.30% Nasdaq-0.20% Russell-0.05% VIX 14.01 (+5.66%)
US Market Closed Lower, S&P slide below its 50d MA. Stocks began the day with slim gains, but retreated from their opening levels during the initial hour amid reports today's Eurogroup meeting was suspended to give the Greek delegation time to submit a better proposal to the creditors. insurer Humana (HUM 197.37, +13.14) spiked during the afternoon and ended higher by 7.1% after Bloomberg reported the company received a takeover offer from Aetna. Volume were in line with average @ 750mil shares. Potash confirmed to have made a offer for K&S. Zoetis +11.4% during the session, 2.5% in after Hours after WSJ Reported Valeant made approach. US After Hours NKE +3.8%, MCZ +1.1%, MU -11.9%, SNX -8.9% following earnings/guidance. US Mkt weakness put pressure on asian Market, Shanghai Composite hit particularly hard in another Friday rout. Recall last Friday marked the crescendo of a 13% weekly decline with a 6% slump, and today the index was down as much as 6% in the morning session, falling within 30pts away of a 1-month low below 4,300. Analysts continue to hold active IPO process partially responsible for the heavy selling, with 28 companies having been approved to IPO this week estimated to freeze up some CNY1.5T in investment funds. Economic data out of Japan were mixed, with 18-year low in unemployment and bigger than expected household spending increase offset by 2-year lows in CPI. Nikkei225 was down slightly, but JPY was stronger across the board. Greek headlines, which did not give way to optimism overnight, remained just as downbeat in Asia and heading into the weekend. German chancellor Merker comments from Brussels indicated she would not commit to expecting a positive outcome, only stating that time for Athens is running out. French Pres Hollande also added that Greece needs better proposals to facilitate the process, and EU Pres Tusk stated there is no need for another euro summit over the weekend, deferring to Eurogroup summit expected to conclude deliberations on Saturday.

Nikkei -0.15% Hang Seng -1.63% Shanghai -6.13%

Eur$ 1.1189 JPY 123.37 GBP 1.5739 EURCHF 1.0487 RUB $54.70 WTI $59.82 (+0.18%)

S&P -0.02% EuroStoxx-0.91% Dax-0.76% SMI -0.80%


Macro :
- What Are Next Steps in Greece as Bailout Deal Remains Elusive

Keep an eye on :
- ADS GY : NKE +3.8% on better numbers
- ATC NA : Altice to Merge Entities to Boost Expansion Through Takeovers
- ATC NA : Altice Says Bouygues Rejected Phone Bid Without Seeking Details, Altice Says Offer Valued Bouygues Telecom at Minimum of EU10b
- ENEL IM : Enel Sees Chilean Ruling Next Month on Corporate Restructuring
- EUCAR FP : Europcar Groupe Offer Price EU12.25/Shr
- LG FP : Lafarge Sees Early Retirement for 200 French Workers: Agefi
- MT NA : Lakshmi Mittal Says Steel Market Doing Better Than Last Year
- POP SM : Spain’s Banco Popular Plans to Buy a Bank in US: Cinco Dias
- RCS IM : Mondadori to Present EU135m Offer to Buy RCS Libri: Messaggero
- SDF GY : K+S Said Likely to Reject Potash Corp. Takeover Proposal
- SDF GY : Potash/K+S Potential Deal Could Be Positive for Sector: Citi
- SDF GY : K+S Takeover Would Make Potash Corp. Largest Producer: Goldman
- GLE FP : Societe Generale Sells 1.4m Sopra Steria Shrs for About EU111m
- SPI LN : Cinven Sells 33.9m Spire Shrs at 340p Each for GBP115.2m
- VK FP : Vallourec Creates 3.09m New Shrs to Pay Dividend
- MF FP : Wendel Said to Get PE Interest For Stahl, May Refinance:Reuters

>>> Altice releases details on offer for Bouygues Telecom

Altice releases details on offer for Bouygues Telecom

Following the decision by the Board of Directors of the Bouygues Group on June 23, 2015, Altice wishes to clarify the following points. Altice made an offer to Bouygues on June 3, 2015, which was updated on June 21, 2015 to provide further specific details (the Offer), the key terms of which were:

Valuation:
The Offer values Bouygues Telecom at a minimum of EUR 10bn, approximately 15 times estimated 2015 EBITDA, as communicated by Bouygues in its market guidance, and 25 times 2017 EBITDA - CapEx, as projected by Bouygues in its press release of 23 June 2015, or a premium of between 2x and 3x compared to the average values for these types of assets in the European market. The Offer consists of a cash payment of EUR 9bn upon closing of the transaction and, at the option of Bouygues, an additional amount of either (i) a guaranteed cash payment of EUR 1bn three years following closing of the transaction OR (ii) a payment of EUR 1bn in Numericable-SFR shares subject to a 3 year put/call guaranteeing a EUR 1bn minimum price for Bouygues plus 3% IRR per year in line with a similar structure put in place between Altice and Vivendi in connection with the acquisition of SFR by Numericable, providing Bouygues with significant upside potential as a result of the realisation of expected synergies.

The Offer is fully and unconditionally financed under commitment letters from BNP, JP Morgan and Morgan Stanley. The financing of the Offer is through (i) approximately EUR 3.5 to EUR 4bn of bank debt, and (ii) approximately EUR 6 to EUR 6.5bn in capital comprising (x) EUR 3.5 to EUR 4bn from (A) asset sales and (B) a capital increase (reserved for the Bouygues group if it opts to receive partial payment in the form of Numericable-SFR shares) and (y) approximately EUR 2.5bn in cash available at Numericable-SFR at the time of closing. The Offer is, therefore, funded with 60%-65% in equity and 35%-40% in debt, not 100% debt as reported in the press.

Regulatory Risk:
In order to ensure the success of the transaction and in order to contain regulatory risks, Numericable-SFR has entered into exclusive negotiations with Iliad to set the terms for transfers of assets. Numericable-SFR and Free have agreed that these asset transfers will be made post-closing of the Bouygues Telecom acquisition. As such, they are more robust than the agreements entered into by Bouygues in March 2014 as part of its failed takeover bid for SFR. Altice and Numericable-SFR have already initiated contacts with the relevant French regulatory authorities to address and resolve any potential issues, as has been done for all such transactions carried out in France.

Job Guarantees:
Altice has committed to the Bouygues Group and to the French Government to maintain employment levels at Bouygues Telecom under conditions similar to those which had been negotiated in connection with the acquisition of SFR. To date, the Numericable-SFR Group is ahead of schedule in its synergy program while fully meeting its commitment to maintain employment.

Continue to Invest Heavily:
Altice has committed to the French Government to:
• (i) continue to increase Capital Expenditures, specifically in the deployment of fibre (FTTH) with a commitment to now reach 20 million homes passed between now and 2020, an additional 5 million homes passed over what Altice committed to in 2014 - it should be noted that Capital Expenditures have increased by 20% at SFR since it was taken over by Altice six months ago;
• (ii) fully participate in the auction on the 700 MHz frequencies.

Altice takes note of the decision of the Board of Directors of Bouygues and regrets that the Board has not once, either through its advisers or through its management teams, sought any details or explanations from Altice regarding the Offer before being presented to the Board.

>>> Europe : Brokers Upgrades & Downgrades - 26th of June 2015

>>> Up
*DEUTSCHE WOHNEN RAISED TO BUY AT KEPLER CHEUVREUX
*GLAXOSMITHKLINE RAISED TO HOLD VS SELL AT LIBERUM
*K+S RAISED TO BUY VS SELL AT BAADER-HELVEA
*MAERSK RAISED TO BUY VS NEUTRAL AT CITI
*MEGGITT RAISED TO NEUTRAL FROM SELL AT UBS
*SWEDBANK RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS

>>> Down
*ARM HOLDINGS CUT TO UNDERPERFORM AT BERNSTEIN
*DNB ASA CUT TO EQUALWEIGHT AT BARCLAYS
*PETROFAC CUT TO SELL VS HOLD AT DEUTSCHE BANK
*QINETIQ CUT TO SELL VS NEUTRAL AT UBS
*SWATCH GROUP CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS


>>> PT change


>>> Initiation
*ACTELION RATED NEW HOLD AT HSBC, PT CHF150
*ASTRAZENECA RATED NEW HOLD AT HSBC, PT 4,640P
*BAYER RATED NEW BUY AT HSBC, PT EU161
*GLAXOSMITHKLINE RATED NEW BUY AT HSBC, PT 1,700P
*GRAND CITY PROPERTIES SA RATED NEW BUY AT KEPLER CHEUVREUX
*GRIFOLS RATED NEW BUY AT HSBC, PT EU45
*HIKMA ASSUMED HOLD AT HSBC, PT CUT TO 1,936P VS 2,280P
*KINGFISHER RATED NEW UNDERPERFORM AT DAVY
*NOVARTIS RATED NEW BUY AT HSBC, PT CHF115
*NOVO NORDISK RATED NEW REDUCE AT HSBC, PT DKK300
*ROCHE RATED NEW BUY AT HSBC, PT CHF329
*SANOFI RATED NEW BUY AT HSBC, PT EU120
*SHIRE RATED NEW REDUCE AT HSBC, PT 4,734P
*UCB RATED NEW BUY AT HSBC, PT EU82


>>> Call

(BFW) Altice to Merge Entities to Boost Expansion Through Takeovers

Altice to Merge Entities to Boost Expansion Through Takeovers
2015-06-26 05:57:31.964 GMT


By Jurjen van de Pol
(Bloomberg) -- Altice says proposed transaction will
provide co. with “powerful equity acquisition currency without
prejudicing voting control of the company’s founding shareholder
group.”

* Proposes merger between newly formed Dutch entity Altice
N.V. and Altice S.A., with latter co. ceasing to exist
* To transfer substantially all assets, liabilities to newly
incorporated unit Altice Luxembourg S.A. prior to merger
* Shareholders to get 3 A shrs with 1 voting right each, 1 B
share with 25 voting rights each in exchange for Altice
stock
* Both shrs to have economic rights, to be listed in Amsterdam
*
* After listing, holders can convert B shrs into A shrs at
1:1 ratio
* Expects to call EGM in first week of July
* Conf call 3:30pm CET +44 20 81500794
* NOTE yday: Altice Says Bouygues Rejected Phone Bid Without
Seeking Details
Statement

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Jurjen van de Pol in Frankfurt at +49-69-9204-1104 or
jvandepol@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net

>>> Asian Update

Asian Mid-session Update: Shanghai plummets again; Japan inflation hits 2-year lows


***Economic Data***
- (JP) JAPAN MAY JOBLESS RATE: 3.3% V 3.3%E; matches the lowest reading since Apr 1997
- (JP) JAPAN MAY NATIONAL CPI Y/Y: 0.5% (2-year low) V 0.4%E; CPI EX FRESH FOOD Y/Y: 0.1% (2-year low) V 0%E
- (JP) JAPAN JUN TOKYO CPI Y/Y: 0.3% (2-year low) V 0.5%E; CPI EX FRESH FOOD Y/Y: 0.1% (2-year low) V 0.1%E
- (JP) JAPAN MAY OVERALL HOUSEHOLD SPENDING Y/Y: 4.8% V 3.6%E; first rise in 14 months
- (NZ) NEW ZEALAND MAY TRADE BALANCE (NZD): +350M V -100ME; 5th straight surplus

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.5%, S&P/ASX -1.5%, Kospi +0.3%, Shanghai Composite -3.6%, Hang Seng -1.2%, Sept S&P500 -0.2% at 2,090

***Commodities/Fixed Income***
- Aug gold +0.2% at $1,174/oz, Aug crude oil -0.1% at $59.66/brl, Jul copper +0.4% at $2.63/lb
- GLD: SPDR Gold Trust ETF daily holdings rise 6.8 tonnes to 713.2 tonnes; highest since June 1st
- SLV: iShares Silver Trust ETF daily holdings rise to 10,236 tonnes from 10,206 tonnes; highest since May 6
- (CN) China MOF sells CNY10.1B in 273-day bills v CNY15B indication, yield 2.209%
- (JP) BOJ offers to buy ¥375B in 1-3 yr JGBs, ¥400B in 3-5yr JGBs, ¥240B in 10-25yr JGBs and ¥140B in JGBs with maturity over 25-yr
- (US) Weekly Fed Balance Sheet Total Assets for week ending June 24th: $4.50T v $4.49T prior; M1 y/y change: 7.6% v 7.8% prior; M2 y/y change: 5.9% v 5.9% prior

***Market Focal Points/FX***
- Weakness of the second straight down day on Wall St has resonated in the far east, With Shanghai Composite hit particularly hard in another Friday rout. Recall last Friday marked the crescendo of a 13% weekly decline with a 6% slump, and today the index was down as much as 5% in the morning session, falling within 30pts away of a 1-month low below 4,300. Analysts continue to hold active IPO process partially responsible for the heavy selling, with 28 companies having been approved to IPO this week estimated to freeze up some CNY1.5T in investment funds.

- Greek headlines, which did not give way to optimism overnight, remained just as downbeat in Asia and heading into the weekend. German chancellor Merker comments from Brussels indicated she would not commit to expecting a positive outcome, only stating that time for Athens is running out. French Pres Hollande also added that Greece needs better proposals to facilitate the process, and EU Pres Tusk stated there is no need for another euro summit over the weekend, deferring to Eurogroup summit expected to conclude deliberations on Saturday.

- Economic data out of Japan were mixed, with 18-year low in unemployment and bigger than expected household spending increase offset by 2-year lows in CPI. Nikkei225 was down slightly, but JPY was stronger across the board, with USD/JPY falling 40pips below 123.30, EUR/JPY down 70pips below 138, AUD/JPY and NZD/JPY down about 50pips. Trading in the NZD was especially volatile. RBNZ released its statement of Intent for FY15-18 calling NZD levels as unsustainable and sending NZD/USD down 50pips below 0.6870. Later in the day, New Zealand trade came in as a 5th straight surplus vs expectations of a deficit, supported by strong recovery of export demand from the US.

***Equities***
US equities / ADRs:
- NKE: Reports Q4 $0.98 v $0.84e, R$7.78B v $7.68Be; Affirms FY16 growth rate expectations, constant-currency Rev growth seen in low double digits, GM to expand 50bps; Sees Q1 Rev growth in low single digits - conf call; +3.5% afterhours
- SNX: Reports Q2 $1.55 v $1.54e, R$3.25B v $3.41Be; -8.6% afterhours
- MU: Reports Q3 $0.54 v $0.57e, R$3.85B v $3.94Be; Guides Q4 Rev $3.45-3.70B v $4.19Be; -11.5% afterhours

Notable movers by sector:
- Consumer discretionary: Tsui Wah Holdings 1314.HK -2.3% (FY14/15 result); Pacific Textiles Holdings 1382.HK +6.1% (FY14/15 result); Luk Fook Holdings 590.HK -1.3% (FY14/15 result); SA SA International Holdings 178.HK -1.4% (FY14/15 result)
- Consumer staples: Woolworths Limited WOW.AU +4.5% (KKR said to consider bid)
- Financials: China Everbright Bank 601818.CN -1.3% (to raise leverage)
- Industrials: Bradken Ltd BKN.AU -12.8% (merger approach, FY15 guidance)
- Technology: Coolpad Group 2369.HK +2.4% (controlling holders to sell shares)
- Healthcare: Daiichi Sankyo Co Ltd 4568.JP +1.4% (EU approves drugs)

>>> US After Hours Summary: NKE +3.8%, MCZ +1.1%, MU -11.9%, SNX -8.9%

After Hours Summary: NKE +3.8%, MCZ +1.1%, MU -11.9%, SNX -8.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: NKE +3.8%, MCZ +1.1%

Companies trading higher in after hours in reaction to news: ABIO +10.3% (RA Capital Management disclosed 9.0% passive stake in 13G filing; Venrock Healthcare Capital Partners disclosed a 17.1% passive stake), VISI +6.6% (announced that Ron Kochman has resigned, effective immediately, as President and CEO; Board appoints Michael Dean, Volt's current Chairman, as Interim President and CEO), VNCE +3.7% (announced Mark Brody has been appointed interim CFO, replaces Lisa Klinger who resigns effective immediately), DHR +2.8% (announced amendment and extension by one day of split-off exchange offer in connection with NetScout transaction), VRTX +2.7% (higher following positive mention on CNBC's Fast Money ahead of co's July 5 PDUFA date for Orkambi for the treatment of cystic fibrosis), ZTS +2.2% (continued strength on reports that co is being pursued by Valeant Pharmaceuticals (VRX)), AEHR +2.0% (announced $1.7 mln follow-on order for ABTS burn-in and test systems from leading IC manufacturer), SKY +1.9% (Board named Richard W. Florea as new President and CEO), SWHC +1.7% (Board authorizes $50 mln stock repurchase plan), FOLD +1.4% (announced Galafold Marketing Authorization Application validated by European Medicines Agency)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: MU -11.9%, SNX -8.9%

Companies trading lower in after hours in reaction to news: FREE -18.8% (announced 1 for 50 reverse stock split), SSH -15.5% (disclosed separation of Kimberly A. Oleson, Senior Vice President of Clinical Affairs from the company), AMDA -10.2% (disclosed a written notice from MG Partners II claiming that an event of default has occurred with respect to certain Securities Purchase Agreement between the co and Magna), RGSE -8.3% (announced public offering of $5 mln of units consisting of Class A common stock and Series F common stock warrants), IPI -3.4% (disclosed the appointment of Brian D. Frantz as Senior Vice President and Chief Accounting Officer effective as of June 23, 2015)