>>> Steel Dynamics sees Q2 EPS in line with consensus

Steel Dynamics sees Q2 EPS in line with consensus

Co issues in-line guidance for Q2 (Jun), sees EPS of $0.20-0.24 vs. $0.23 Capital IQ Consensus Estimate.
  • EPS above excluded the following items: ~$29 mln, or $0.07/share, of expenses associated with the company's Minnesota Operations. ~$9 mln, or $0.02 per diluted share, of reduced earnings related to a furnace maintenance outage at Iron Dynamics.
  • Commentary: Improved second quarter 2015 shipments will be offset by unexpected metal margin compression, driven by steel imports remaining much higher than originally anticipated, resulting in average quarterly steel prices decreasing more than average quarterly scrap prices. The benefit of reduced scrap pricing was realized in the second quarter; but, the continued flood of steel imports thus far in 2015 continued to pressure steel product pricing to a greater degree. However, steel pricing has recently begun to stabilize and domestic steel demand remains solid.
Other steel producers to watch include: AKS, CMC, MT, SCHN, X. Steel processors to watch: ROCK, RS, RYI, WOR, ZEUS. Nucor (NUE) provided guidance Friday

>>> UBS commenting on Cybersecurity stocks

UBS commenting on Cybersecurity stocks 
- Firm notes there's no sign of spending tap shutting off; breach news flow contnues unabated
- Firm notes near-term outlooks healthy but "easy money" has been made
- Firm highlights that all key players will lap a combination of tough comps and escalating execution expectations that will narrow the margin for error on the stocks
- reiterates Buy on PANW, FTN
T- Cuts FEYE to Neutral and SYMC to Sell
- reiterates Neutral on CHKP

(BFW) *AURELIUS BUYS REMAINING SHRS IN GETRONICS

BFW 06/22 09:21 *AURELIUS BUYS REMAINING SHRS IN GETRONICS
BN 06/22 09:20 *AURELIUS BUYS REMAINING SHRS IN GETRONICS
AURELIUS Acquires Remaining Shares in Getronics
2015-06-22 09:20:00.106 GMT

AURELIUS Acquires Remaining Shares in Getronics

* Acquisition follows on from Getronics’ positive performance
* Getronics/Connectis Group to become an all-round IT consulting firm
* Above-average growth and rising profitability in 2015

Business Wire

LONDON -- June 22, 2015

The AURELIUS Group (ISIN DE000A0JK2A8) has today announced the full
acquisition of Getronics, the global ICT services group. AURELIUS had
previously held a majority interest in Getronics since 2012 and has now
purchased the remaining 22 per cent.

Through a strategic acquisitions programme of its own, Getronics has
transitioned from a traditional portfolio of workspace services to developing
a broader service suite for today’s mobile and cloud enabled enterprises.

In addition to successfully integrating AURELIUS IT subsidiaries from Telvent,
Thales and Steria into the business, Getronics has also bought NEC Enterprise
Solutions across four countries to further grow its Unified Communications
(UC) business. More recently, it acquired T-Systems subsidiary, Individual
Desktop Solutions GmbH (IDS) in Germany.

“Over the past few years, Getronics has successfully established itself as a
leading independent provider of ICT outsourcing” Mark Cook, Group CEO of
Getronics comments. “Based on strategic partnerships with companies like Dell,
Cisco, and Microsoft, we have systematically developed our portfolio and
successfully met the changing needs of customers. Thanks to the intensive
cooperation of partners within the Getronics Workspace Alliance (GWA), the
company has expanded the proportion of total revenues created from next
generation services, such as Cloud, UC and Applications.”

The AURELIUS management team expects Getronics’ business to grow at a faster
rate than the market. The company is focussed on continuing to expand its
global presence through organic and inorganic growth, working closely with its
subsidiaries and partners to strengthen its long-term market position.

“The acquisition of the remaining shares from Dutch telecommunications
provider Royal KPN is a positive step for both Getronics and AURELIUS,” said
Dr. Dirk Markus, CEO of AURELIUS. “Getronics has grown its revenues and
increased its profitability in the last two years, and we want to continue
this growth with the Getronics Group (which includes the Connectis brand).”

About Getronics

The Getronics family is an ICT Services group consisting of the Getronics and
Connectis brands and is owned by the AURELIUS Group, a holding company
headquartered in Munich, Germany. With an extensive history that extends over
125 years, the Getronics family has approximately 6,000 employees in 18
countries across Europe, Asia Pacific & Latin America, and has a complete
portfolio of integrated ICT services for the large enterprise and public
sector markets. This includes Workspace, Applications, Communication, Data
Centre, Cloud, Consulting, Product and Managed Services.

Getronics is the lead in the Getronics Workspace Alliance, a unique model that
provides customers with a consistent IT service throughout the world, with one
single point of contact and billing entity, delivering services to 90
countries. The GWA is ranked number 3 globally according to OVUM’s
Managed/Maintained End-user Devices with a total of 7.4M assets.

View source version on businesswire.com:
http://www.businesswire.com/news/home/20150622005487/en/

Contact:

For Getronics:
3 Monkeys Communications
Oliver Thomas
020 7009 3100
Getronics@3-monkeys.co.uk

-0- Jun/22/2015 09:20 GMT

(Zerohedge) "It's Time To Hold Physical Cash", Fidelity Manager Warns Ahead Of "

"It's Time To Hold Physical Cash", Fidelity Manager Warns Ahead Of "Systemic Event"

As Jamie Dimon recently noted while discussing the perils of illiquid fixed income markets, the statistics around “tail events” can no longer be trusted.
In other words, 6, 7, or 8 standard deviation moves that in theory should only happen once every two or three billion years may now start to show up once every two to three months. Evidence of this can be found in October's Treasury flash crash, January's fantastic franc fuss, and last month's Bund VaR shock.
Why is this happening? Simple. There’s no liquidity left and the idea of efficient markets facilitating reliable price discovery is an anachronism.
Today’s broken, “mangled” (to use Citi’s descriptor) markets come courtesy of: 1) frontrunning, parasitic HFTs, 2) the post-crisis regulatory regime which, to the extent it’s well meaning, was conceived by people who never had any hope of evaluating the likely knock-on effects of their policies, and 3) central banks, who have commandeered sovereign debt markets, leaving a trail of illiquidity and shrunken repo in their wake.
Meanwhile, equity and fixed income bubbles continue to inflate on the back on central bank largesse and the only two options for rescuing a highly leveraged world are writedowns and/or inflating away the debt.
So what is a savvy investor to do in this powderkeg environment?Simple, says Fidelity’s Ian Spreadbury: own gold, silver, and physical cash.


The manager of one of Britain’s biggest bond funds has urged investors to keep cash under the mattress.

Ian Spreadbury, who invests more than £4bn of investors’ money across a handful of bond funds for Fidelity, including the flagship Moneybuilder Income fund, is concerned that a “systemic event” could rock markets, possibly similar in magnitude to the financial crisis of 2008, which began in Britain with a run on Northern Rock.

“Systemic risk is in the system and as an investor you have to be aware of that,” he told Telegraph Money.

The best strategy to deal with this, he said, was for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went further, suggesting it was wise to hold some “physical cash”, an unusual suggestion from a mainstream fund manager.

He pointed out that a saver was covered only up to £85,000 per bank under the Financial Services Compensation Scheme – which is effectively unfunded – and that the Government has said it will not rescue banks in future, hence his suggestion that some money should be held in physical cash.

He declined to predict the exact trigger but said it was more likely to happen in the next five years rather than 10. The current woes of Greece, which may crash out of the euro, already has many market watchers concerned..

Mr Spreadbury's views are timely, aside from Greece. A growing number of professional investors and commentators are expressing unease about what happens next..

“The problem is that people are struggling to work out how to diversify if QE programmes stop,” he said.

Mr Spreadbury added: “We have rock-bottom rates and QE is still going on – this is all experimental policy and means we are in uncharted territory.

“The message is diversification. Think about holding other assets. That could mean precious metals, it could mean physical currencies.”


As The Telegraph notes, this is "an unusual" piece of advice coming from "a mainstream strategist" and it suggests the "serious people" are starting to realize that a certain tin foil hat fringe blog — which can already count LIBOR manipulation and HFT proliferation as examples of conspiracy theories turned world-changing conspiracy facts — may be correct to warn that if the current state of affairs persists for much longer, the "market" may one day be halted and simply never reopen.

(BFW) Fiat/GM Powertrain Deal Would Be Better Than Merger: Barclays

Fiat/GM Powertrain Deal Would Be Better Than Merger: Barclays
2015-06-22 09:07:00.563 GMT


By Brian Lysaght
(Bloomberg) -- Combining Fiat Chrysler and GM engine and
transmission operations would create a company worth $40b,
unlock value and carry less execution risk than full merger,
says Barclays in note.

* Fiat-GM powertrain would offer scale advantages on capital
investments required to meet tougher fuel economy rules of
2020-25
* Auto industry needs to move to a tech-like supply chain:
Barclays
* NOTE June 9: Barra Says GM Board Vetted, Passed on
Marchionne Merger Call Link
*
* GM and Fiat ended a previous engines/vehicle development
venture in 2005 Link

Link to Company News:{FCAU US <Equity> CN <GO>}
Link to Company News:{GM US <Equity> CN <GO>}

For Related News and Information:
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First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
Brian Lysaght at +44-20-3525-7908 or
blysaght@bloomberg.net

>>> UBS Comment on SKY

UBS

Murdoch family rebuffs two approaches for Sky
Reports in the Telegraph over the weekend state that the Murdoch family/Fox could be considering a
new bid to take 100% control of Sky after rebuffing two recent approaches for their 39% stake in the
company.
Informal approaches from Vivendi and Vodafone
Specifically, the Telegraph report states that Vincent Bolloré, chairman of Vivendi, had made an informal
approach the Murdoch family earlier this year but talks did not progress given the latter wanted £18 per
Sky share. Sources in the report also state that Vodafone made an informal approach to the Murdoch
family last year but received a similar price demand and did not pursue discussions. Neither informal
approach was discussed by either the Fox or Sky boards according to the report.
A more favourable backdrop to re-visit a bid?
The Telegraph report indicates the recent promotion of James Murdoch to CEO of Fox (he was the
former CEO of Sky) and the recent election of a Conservative government as factors that could create a
more favourable backdrop to revisit a bid. Fox originally tried to take 100% control of Sky in 2010 but
ran into political opposition. Note Fox is covered by our US analyst Doug Mitchelson.
Valuation: PT based on DCF
We think the Telegraph report highlights the potential strategic value of Sky to a number of different
parties and this is not reflected in the current share price. We remain fundamentally positive on Sky and
believe investors have underestimated the upside to growth from new initiatives (NowTV, Adsmart and
Sky Store) and the benefits of scale from the Sky Europe deal (acquiring pan-European rights and
launching an online/OTT offer into new markets). We see Sky as cheap on 14.5x calendarised 2016 PF
EPS and offering c20% pa EPS growth.

>>> RBC Comment on French Telcos

Eur80 if takeout
Numericable-SFR (Top Pick, PT €70.00/share) - large synergy potential. The stand alone investment case for Numericable-SFR is extremely attractive in our view. Indeed, based on current cost cutting
estimates, our forecasts imply that the company yields 10% FCF in the coming years. However, given the
focus on costs, coupled with the disruptive behaviour of Bouygues Telecom, there is notable pressure
on revenues. Thus, the strategic rationale for a deal is not just synergies from costs/capex, but also from
an improved revenue outlook in a more rational market. We estimate a deal would generate synergies
with a net present value of c€15bn and note that our upside case valuation for the company is €80.00/
share, in the event of a takeout.

Iliad (Outperform, PT €279.00/share) - a beneficiary of remedies. Being the smallest operator in France,
Iliad would of course expect to receive healthy remedies in a consolidation scenario. In our base case,
we assume that it receives 2x10MHz of 800MHz spectrum, some retail stores, and possibly tower
assets for €1bn. In our note, Iliad On the Road with RBC - Market share and Margins, we argued that
consolidation would lead to Iliad's ability to attain market share (both mobile and fixed) AND upselling
mobile subscribers to the €20/month package would be greatly improved. Our upside case valuation
for Iliad, which is predicated on the deal, is €330.00/share.
Orange (Outperform, PT €17.00/share) - may have to play its part. Orange has responded to press
conjecture regarding French consolidation by confirming that it isn't part of any talks or deals at this
point, but is open to discussions about consolidation. We believe Orange has a part to play, which may
come in the form of it having to take on Bouygues' Telecom's 8-9k workforce. At its Capital Market's Day
Orange highlighted that of its 100k domestic workforce, 25k would leave by 2020 through retirement,
and that it intended to employ an additional 1.9k employees in 2015/16 - thus we believe there is some
flexibility for the company. Our upside case valuation for Orange, partially reflecting an improved French
market, is €19.00/share.