>>> What to look at this Week End - 21st & 22nd of June 2015

Weekly Performance :
Dow +0.65% S&P +0.76% Nasdaq +1.30% Russell +1.55% Nikkei -1.14% Hang Sang -1.91% Shanghai -13.32% EuroStoxx -1.34% FTSE -1.10% CAC-1.75% Dax -1.40% Ibex -0.78% FTSE Mib -0.78% SMI -1.76% VIX +1.39% V2X +13.90%

Global markets were seen approaching or crossing key thresholds this week. At Wednesday's post rate decision press conference, Fed Chair Yellen said conditions were still not ripe for starting rate hikes, citing continued labor market slack and weakness in wages. Fed dovishness help propel stocks higher and the Nasdaq closed at a new all-time high of 5,143 on Thursday, finally topping the all-time high set on March 10th, 2000 at the height of the dot com bubble. Greece and its creditors remained at an impasse, failing to bring any new ideas to a meeting of European financial ministers on Thursday. An emergency summit of euro zone leaders on Monday appears to be the last chance to change the course of events flowing toward a Greek default. In Asia, both the Shanghai and Shenzhen stock markets fell into correction territory, as liquidity concerns pummeled the markets after regulators again scolded brokers about excessive margin trading. Even as China sank, US stocks had their best week in two months: the DJIA added 0.6%, the S&P500 rose 0.7%, and the Nasdaq gained 1.3%.

Macro :
- Tsipras Government Must Rise to Its Responsibility: EU’s Schulz
- EU Commission’s New Plan Sees Extending Greek Aid to Sept: FAS


Keep an eye on :
- AF FP : Air France, Delta to Operate Nice-New York Flights All Year
- AFR LN : Afren Sees Added $148m in Net Cash Proceeds in Restructuring
- AIR FP : Airbus to Build U.S. Factory to Fulfill Satellites Contract: JDD
- BMPS IM : Monte Paschi Says Bank’s Rights Offering Fully Subscribed
- EN FP : Numericable-SFR to Bid ~EU10b for Bouygues Telecom: France Info
- EN FP : French Finance Minister Opposes Telecoms Consolidation, AFP Says
- CI US : Anthem Raises Offer for Cigna to $54 Billion ($184/share +18,3% vs friday close $155.26,, +5% vs last offer @ $175) - WSJ
- ANN GY : Deutsche Annington looking to acquire residential portfolios with more than 1,000 units - Welt am Sonntag
- DBHN GY : Deutsche Bahn Wage Battle Has Cost EU489M, Bild am Sonntag Says
- HSBA LN : HSBC Said to Plan $300m Brazil Corporate Bank After Sale
- IAG LN : IAG Considering Offering Concessions to EU Regulators: Reuters
- ILLY IPO : Illy Said to Consider Market Listing, Hires Roland Berger: FT
- BAER VX : Julius Baer Sees No Major M&A Before U.S. Tax Accord: Basler Z.
- LSE LN : London Stock Exchange Group Raised to Baa1 by Moody’s
- MRL SM : Merlin Props Weighs Alternatives to Sale of New Shares: Filing
- NG/ LN : National Grid’s CEO Holliday Set to Step Down: Sunday Times
- NUM FP : Numericable-SFR to Bid ~EU10b for Bouygues Telecom: France Info
- ORA FP : Orange Says It Isn’t Part of Bouygues Telecom Talks, Deal
- RR/ LN : Rolls-Royce’s Aflatt, Marine Unit CFO, Leaves by Mutual Consent
- SGO FP : Saint-Gobain CEO Says French Industrial Decline Halted: Figaro
- SCVB SS : Scania Gets Columbian Order for 147 Gas Buses
- SKYD GY : New Sky Deutschland CEO Aims at Fast Subscriber Growth: Welt
- SVT LN : Borealis Weighs £5b Takeover Bid for Severn Trent: Sunday Times
- SYNN VX : Monsanto could refine offer for Syngenta - Basler Zeitung
- SYNN VX : Monsanto continues to seek constructive talks with Syngenta, would not rule out price increase  - Schweiz am Sonntag
- TEC FP : Algeria’s Sonatrach Ends Technip Refinery Contract: El Watan
- FP FP : Total Cut Investment Budget by 10% in 2015, CEO Tells Investir
- VIE FP : France’s SNCF to Expand Bus Services, CEO Pepy Tells Europe1

>>> Barrons Summary: Positive on airlines, MRK, AMBA, RIG; cautious on OPK, FIT,

Barrons Summary: Positive on airlines, MRK, AMBA, RIG; cautious on OPK, FIT, UA 

Cover story: Expose on the airline industry sees a further upside of up to 50% in some airline shares due to consolidation and other favorable trends. Cost cutting and increased prices have led to higher profits yet valuations are still depressed. Positive on AAL, DAL, LUV, and UAL

Features: Positive on Merck given its recent spate of positive data on new treatments. Sees potential for its new drugs to become blockbusters and replace the revenue lost by other drugs moving into patent expiration. 
Positive on Nintendo following its recent foray into new product lines that reduce its reliance on video games. Moving into smartphones and the theme park space may lead to upside in its share price. 
Cautious on the OPK-BRLI merger as both companies suffer problems. Shares of the combined company may not fare much better. 

Tech Trader: Negative on prospects for recent IPO FIT as it is under threat from much competition and its other product lines are not profitable. Could end up being a takeover target however. Positive on AMBA assuming one feels as though GPRO will continue to be a success going forward given that it uses AMBA's tech. TXN could be undervalued as a stock vs its competitors given the focus on M&A activity in the space.

Trader: Positive on RIG's potential going forward as it currently is priced for extreme pessimism. The stocks valuation may protect it from further downside and allow better upside as the oil market stabilizes and a more normal drilling market resumes. 

European Trader: Discusses the recent trials and tribulations for Adidas. After trading down significantly on profit warnings, the stock has recovered well in recent months. Its low valuation, strong capital return program and similar growth trajectory among peers place it in a strong position despite its loss in market share in North America. Risks to the stock include the FIFA scandal and european sentiment. 

Asian Trader: Recommends seeking out large China technology firms that have assets that could be valued properly in the China stock markets.

Emerging Markets: Cautious on Russia as problems in Ukraine are still a possible risk factor for Russia markets even despite the recovery in crude oil prices. 

Commodities: Sees potential for Nickel prices to decline further. There appears to be excess supply in the market with lacking demand. China has scaled back its purchases following the scrutiny on its use as collateral in financing deals. 

Streetwise: Cautious on UA's recent decision to pursue separate share classes of stock. The move appears designed to make sure that found Plank gets to maintain control over the company while only owning 16% of shares.

WSJ : European Telecom Altice Offers to Buy French Rival Bouygues



European Telecom Altice Offers to Buy French Rival Bouygues

Deal would reduce France’s mobile operators to three and face stiff regulatory hurdles 

PARIS—European telecommunications firm Altice SA has made an offer of around €10 billion ($11.4 billion) to buy French mobile operator Bouygues Telecom, according to a person familiar with the matter, in a deal that would face stiff regulatory hurdles in France as it would reduce the country’s number of mobile operators from four to three.

Altice, controlled by French cable magnate Patrick Drahi, made an offer to buy Bouygues Telecom about 10 days ago, which would include merging the unit with Altice’s French operations, called Numericable-SFR, the person said. 

Parent company BouyguesSA will consider the offer this week, but it is unclear if Bouygues Chairman Martin Bouygues, who controls the firm, will accept, the person added. 

The offer thrusts Mr. Drahi again into center stage in France’s fractious telecommunications industry, just over a year after he beat out Mr. Bouygues in a takeover battle to purchase Vivendi SA’s SFR. The French government has in recent months said it would oppose deals that reduced the number of mobile operators in the country. 

On Sunday, French Economy Minister Emmanuel Macron fired a warning shot against the deal, saying that companies should be focusing on investment and jobs, not mergers. 

“The consequences of consolidation are negative in these respects, as several recent cases in Europe have proven,” Mr. Macron said. “The time isn’t right for opportunistic mergers that could benefit some but aren’t in the public interest.”


To address potential antitrust concerns, Mr. Drahi has struck a side-deal with Iliad SA, owner of another mobile operator in France called Free Mobile, to purchase parts of Bouygues’ telecoms network, the person said. 

Since the arrival of Iliad’s Free Mobile in early 2012 set off a price war, French telecommunications firms have complained that their market is too competitive. But the country’s competition watchdog has said it would be wary of such deals. 

Mr. Drahi’s Altice has been keen on a Bouygues purchase for some time, according to executives, because it would shrink the number of mobile carriers in France to three from four. But Bouygues has appeared unwilling to sell.

French newspaper JDD first reported the news of Mr. Drahi’s bid on Sunday.

FT : Greece urged to reach deal before summit with bailout monitors



France and Germany have told Greece it must have an agreement on economic reform measures with the trio of bailout monitors finalised and delivered before a crucial leaders’ summit between Athens and its creditors on Monday.
With the Greek cabinet meeting on Sunday to consider compromise proposals, François Hollande and Angela Merkel both telephoned Alexis Tsipras, the prime minister, to remind him he needed a “staff level” agreement with the European Commission, IMF and ECB ahead of the summit.

They told him the summit was not for “negotiations” — which anyway would be all but impossible in a forum including all 19 eurozone members — and urged him to reach a deal with the institutions. EU officials and bankers have warned that the failure to reach a deal on Monday could lead to a Greek default on its debts and even force its exit from the eurozone.
If a deal is reached, the two leaders said the parties could then start discussing a third bailout at the summit. France is believed to be open to discussing debt restructuring for Athens, a top priority for Mr Tsipras, whose radical leftwing government won office in January setting Greece on a collision course with its creditors.
The Greek cabinet was summoned to a meeting at Mr Tsipras’ Maximos Mansion residence on Sunday morning for a last-ditch meeting to hash out the government’s strategy.
Ministers are expected to discuss how Mr Tsipras can bridge his two seemingly intractable electoral mandates: to end austerity and block further cuts in spending while also satisfying creditors’ demands for reform to keep Greece in the eurozone.
The summit was called after Thursday night’s failure of eurozone finance ministers’ meeting in Luxembourg to cut a deal that would unlock €7.2bn in bailout funds Athens needs to pay the International Monetary Fund by the end of June or face default
Minister of State Nikos Pappas used an interview on Saturday with the country’s Ethnos newspaper to reiterate the government’s firm opposition to cuts to pension plans or wages.
Yanis Varoufakis, Greece’s finance minister, writing in German daily Frankfurter Allgemeine Zeitung, has said German chancellor Angela Merkel faces “a stark choice” ahead of the crucial summit of European leaders in Brussels on Monday. 

Ms Merkel could enter into “an honourable agreement with a government that opposes bailouts” and wants “a negotiated solution that ends the Greek crisis once and for all”. The second option was to “heed the sirens” from her government, which he said were “encouraging her to jettison the only Greek government that is principled and which can carry the Greek people along the path of genuine reform.” 
Mr Varoufakis said the Greek government would come to Brussels on Monday willing to compromise. but it would only compromise as long as the Syriza-led government was not asked to take on new loans “under conditions that offer little hope that Greece can pay back its debts”.
“The choice, I am very much afraid, is hers,” he said.
In a sign of the growing anxiety in Greece, savers withdrew more than €1.6bn in deposits on Friday, according to two banking sources, the largest withdrawal in one day since Greece’s left-wing government took office in January. More than €6bn have left the system this week, and bankers fear the withdrawals could speed up when the banks reopen on Monday.
Syriza supporters will rally in front of Parliament on Sunday evening to urge the government not to give in to creditors’ demands. 

Over the weekend Jeroen Dijsselbloem, Dutch finance minister, who chairs meetings of his eurozone peers, brought the meeting forward by two-and-a-half hours.
Giving no explanation for the earlier start, Mr Dijsselbloem said ministers would convene in Brussels at 12.30pm on Monday. Angela Merkel, German chancellor, and other eurozone leaders are due to sit down with Mr Tsipras in the same venue at 7pm.
Underlining international concern that a Greek default could ripple across the world economy, US Treasury Secretary Jack Lew said it was up to Greece to make concessions.
“What we know is the best solution is for Greece to make some tough decisions and for this to be worked out,” he told CNN television.
“Within Greece, the consequence of a failure here would mean a terrible, terrible decline in their economic performance.” 
The European Central Bank threw a slender lifeline to Greece’s troubled banking system on Friday, as the run on the country’s lenders accelerated ahead of a crucial leaders’ summit between Athens and its creditors on Monday.
The ECB agreed to raise the amount of emergency liquidity assistance available to Greek banks by around €1.75bn to €85.9bn on Friday, according to two people familiar with the matter, to allow lenders to pay back depositors.

Fwd:Reuters : Advanced Micro Devices mulling breakup, spinoff: sources



Chipmaker Advanced Micro Devices Inc is at the initial stage of reviewing whether to split itself in two or spin off a business, seeking to reverse its fortunes and take on rival Intel Corp, according to three people familiar with the matter.

The deliberations are preliminary and no decision has been made, the people said. The review highlights Chief Executive Lisa Su's determination to consider every possible option to turn the company around.

AMD, based in Sunnyvale, California, has asked a consulting firm to help it review its options and draw up scenarios on how a break-up or spin-off would work, the people said this week, asking not to be identified because the deliberations are confidential.One option under consideration is separating AMD's graphics and licensing business from its server business, which sells processors that power data centers, one of the people said.

AMD had explored such a move in the past and decided against it, the people said. Su, however, who took over as CEO last October, judged that there is merit for the company to at least consider such a possibility again, the people added. There is no certainty that a split or spin-off will occur, the people cautioned.

An AMD spokeswoman said no such project was in the works at this time and reiterated the company's commitment to the long-term strategy it laid out in May at its analyst meeting.

AMD, which has a market capitalization of around $2 billion, has competed with much larger Intel since the 1980s, and at times has made inroads with its PC and server chips. AMD has an extensive cross-licensing agreement with Intel, an issue AMD would have to study carefully in the case of a break-up.

In the last few years, AMD has been caught somewhat flat-footed by new competitors designing low-cost and power-efficient chips. AMD shares have fallen 40 percent over the last 12 months.

The company, which said in October it would cut 7 percent of its workforce, is now shifting its focus to gaming consoles and low-power servers to combat falling laptop sales.

While large rivals such as Intel have deeper pockets to fund research on new products, AMD faces declining cash flows and has a more modest balance sheet.

AMD's net loss widened to $180 million, or 23 cents per share, in the quarter that ended March 28, from $20 million, or 3 cents per share, a year earlier. It also missed on revenue expectations. It is forecasting a return to profitability in the second half of the year.

JDD : « Une commande record de 900 satellites »

« Une commande record de 900 satellites »

Le numéro 2 du groupe Airbus retient l’excellente santé de la filière aéronautique et spatiale, même si le Salon du Bourget ferme ce soir sans avalanche de contrats

Le directeur général délégué à la stratégie et au markeging d’Airbus confirme que l’aviation civile, la défense et le spatial vont continuer à générer de la croissance en France malgré le match serré qui l’oppose notamment à Boeing. Peut- on parler d’un Bourget décevant pour l’aviation civile ?

NICOLAS MARQUES POUR LE JDD
Seize Bourget à l’actif de Marwan Lahoud, cette année président du groupement des industries françaises de l’aéronautique et du spatial ( Gifas).
Nous savions que les commandes n’allaient pas battre les records de 2013 ou de 2011, mais elles sont conformes à nos prévisions, plus de 100 commandes d’avions par jour… Nous avons dix ans de production devant nous représentant plus de 1.000 milliards de dollars. Le marché est sur une très bonne dynamique de croissance. Notre secteur est en forme. Ne boudons pas notre plaisir. Pas de gros contrats non plus dans la défense…

Ce n’est pas le salon où l’on signe des contrats militaires. Mais plus de 280 délégations étrangères étaient présentes pour échanger et s’informer sur nos produits. Nous avons aussi remis en vol l’A400M après le tragique accident survenu à Séville en mai dernier. Le dossier est aux mains de la justice espagnole. L’A400M a volé tous les jours au Bourget. Vendredi, nous avons même livré à l’armée française son septième appareil. Le contrat le plus spectaculaire n’est- il pas finalement venu du spatial ?

L’américain OneWeb nous a en effet passé une commande très importante de 900 satellites. Le nombre est impressionnant, mais il s’agit surtout d’une véritable révolution industrielle. Nous allons devoir les produire en quelques mois. C’est comme passer de la haute couture au prêt- àporter. Le projet de OneWeb est magnifique. L’idée de départ était de rendre Internet accessible à toutes les écoles du monde. Elle vise maintenant à couvrir l’ensemble de la planète. C’est un projet fascinant pour Airbus Group. Nos équipes qui fabriquent des avions à cadence élevée et celles qui font des satellites vont travailler ensemble. Il faudra construire une nouvelle usine aux États- Unis et être prêt à lancer dès 2018. Pour nous, cela reviendra à produire un satellite à des coûts divisés par vingt ou même trente. Est- ce aussi un nouveau client pour Arianespace ?

Nous l’espérons bien ! OneWeb choisira. Nous y travaillons avec les équipes d’Arianespace, dont notre société commune avec Safran aura bientôt le contrôle. Nous restons aussi mobilisés sur Ariane 6, le futur lanceur européen, qui devrait être prêt pour 2020. Ariane 5 a toujours été leader. C’est toute la question de l’excellence technologique. Nous ne pouvons pas perdre la première place. Nous devons rester devant. C’est aussi votre défi dans les hélicoptères ?

Cela a été un excellent Bourget pour les hélicoptères. Nous avons présenté la toute nouvelle génération d’appareils, le H160, avec des innovations de très haut niveau tant sur la propulsion que sur la forme des pales ou les équipements de pilotage et de navigation. Il fait entrer l’hélicoptère dans le XXIe siècle. Nous avons aussi annoncé le lancement d’un nouveau modèle d’hélicoptère lourd, le X6, qui intégrera d’ailleurs plusieurs des innovations du H160. Un véritable cheval de guerre qui pourra tout faire.

(BFW) French Finance Minister Opposes Telecoms Consolidation, AFP Says


French Finance Minister Opposes Telecoms Consolidation, AFP Says
2015-06-21 08:39:38.472 GMT


By Andrea Rothman
(Bloomberg) -- Consolidation in French telecommunications
market is “not desirable,” Finance Minister Macron is quoted
by Agence France Presse as saying in a statement, following JDD
reports of Numericable-SFR bid for Bouygues Telecom.

* Macron says consolidation would have negative effects on
employment, investment, service for consumers


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

To contact the reporter on this story:
Andrea Rothman in Toulouse at +33-5-6365-7668 or
aerothman@bloomberg.net
To contact the editor responsible for this story:
Benedikt Kammel at +49-30-70010-6230 or
bkammel@bloomberg.net

>>> Monsanto continues to seek constructive talks with Syngenta, would not rule

Monsanto continues to seek constructive talks with Syngenta, would not rule out price increase 

Monsanto, the US agri-group, is continuing to seek constructive talks with Swiss rival Syngenta, Schweiz am Sonntag reported.

Monsanto communications chief Sara Miller made this statement to the Swiss weekly and added Syngenta has not taken up Monsanto's offer to rethink the offer price if Syngenta allows it a look into the books.

Miller said the reaction of Syngenta shareholders on a recent road show is encouraging as it indicated many shareholders would support the offer. Monsanto has offered CHF 449 per Syngenta share which is currently trading at CHF 401.90, the report noted.

The report also cited Credit-Suisse analyst Lorenzo Biasio, who has spoken to Monsanto, and who advises many shareholders, said many shareholders are prepared to accept the CHF 449 per share offer, while Zuercher Kantonalbank's Martin Schreiber estimated Monsanto would gain around 50% acceptances at the current offer price.

Both Biasio and Schreiber think it likely that Monsanto makes the offer official, the report stated.

Schweiz am Sonntag

JDD: The coup de Maitre Martin Bouygues

Patrick Drahi could outbid

A Bouygues Board of Directors was convened on Tuesday to study the offer of SFR. Purposeful, Martin Bouygues continues to push these advances to raise the stakes. "The offer of Drahi is inappropriate and not fastened, including its financing, 'says one of his lieutenants. The CEO of Bouygues remembers IL CACHE well her game. By dint of repeating that he has "the peasant mind," in contrast to its competitors obsessed with their share price, it is neither énarque as the CEO of Orange, or polytechnic, such as SFR, the more I believe that the son of Francis Bouygues is exceeded. Almost old-hat by the financial Patrick Drahi (SFR), the bluffer Xavier Niel (Free) or the clever Stephane Richard (Orange). In February, during the publication of the 2014 accounts the group, he had insisted he would not sell Bouygues Telecom. "You would sell your wife? "Had he dropped the JDD.

Obviously, it was to send the signal to his opponents that he would not let eaten alive. Whoever hunting every weekend in Sologne was able to play for time to climb trees impatient Patrick Drahi. Though weakened, he resisted to reverse the balance of power and must go. If he sells his phone subsidiary nearly 11 billion euros, Martin Bouygues receive an unexpected jackpot while the market value between 3 and 5 billion ... Eleven billion is almost the battle for SFR, year past. His perseverance had forced the flamboyant Drahi to add 2 billion cash at the last night of negotiations. This time, Martin Bouygues gets the message that it would be prepared to sell its subsidiary, he created twenty years ago, to 11 billion. According to a source close to the negotiations, SFR could improve its offer by Tuesday council to win the bet. Martin Bouygues wants to bend his rival. He also wants SFR value of all the Bouygues group in Exchange. A stroke of poker that financial appreciate.

Last year, he had already sold Alstom, in which it held 30% to 12 billion. It will recover 1.2 billion in the form of share repurchases. In total, his war chest could reach 12 billion euros in cash. What ferat- it? His family stress that Martin Bouygues dream of closing his career - he has 63 and leads the group for twenty-six years - by locking the control of his family on the empire of BTP. A dream unfulfilled by Francis assumes all risk of competition. "Offers of Drahi, it receives every two weeks, irritated a group administrator. If his is conditional on approval from the Competition Authority, it will not look the same. "

If he touches a check for nearly $ 11 billion, Martin Bouygues will have achieved a tour de force. For two years, all his opponents have tried to make him give in to nothing. After several successive refusals, he would succeed Bouygues. Today, he and his brother hold only 20%.

Climbing above 50%, he would bequeath to his three children a secure group. Away from small 6% he inherited on the death of his father in 1993 and earned him a violent offensive by Vincent Bolloré four years later. Others attribute to him views on major French companies like Veolia to enjoy its international exposure. But the adventure Alstom cooled. Unless the combative Martin Bouygues only to start all hunting. P. Towards a rise in prices?

For his part, Patrick Drahi would complete its fourth major acquisition in a year after SFR, Portugal Telecom and Suddenlink in the United States. By acquiring Bouygues, SFR will become the first mobile operator with half of the market and the other for Internet access behind Orange. But Drahi will add 10 billion debt to his group Altice, who already accumulates 32 billion ... The Stock Exchange during Bouygues, SFR, Orange and Free are expected to fly tomorrow, all investors speculating on a market concentration to three operators .


Ultimately, marriage SFRBouygues Telecom will be complex. Analysts at BNP Paribas estimate that by 2020 the new group could lose 8% market share in favor of Free ... who would recover naturally subscribers. Xavier Niel and double its market share from 10% to 20% without spending a fortune. The question is whether the return to three operators would cause a rise in prices. Unlikely in the mobile, which remains a product of call where the troublemaker Free low cost has made his trademark. However, they could increase for Internet box, whose clients movements are weak. SFR setting the fiber to inflate its prices and margins, as Orange. Those of Free are already 40%.