>>> What to look at today - 18th of June 2015

Dow+0.17% S&P+0.23% Nasdaq+0.18% Russell-0.04%
US Market Closed higher getting very close from its 50d MA. FOMC policy statement, which called for no change to the current monetary policy stance helped the market to trade higher. Interest rate forecast implied two 25-basis point increases before the year ends. Furthermore, the Fed lowered its 2015 GDP growth forecast range to 1.8-2.0% from the range of 2.3-2.7% that was forecast in March. Ms. Yellen said the central bank would like to see more "decisive evidence" on inflation and employment before hiking rates. Volume continue to be light at 700mil shares...US After Hours PIR +7.2%, OPGN +1.8%, RATE -13.7%, JBL -7.5%, ORCL -6.4%, OIS -5.4% following earnings/guidance...BMRN +6.8% on positive Phase 2 (JPMraised target to $151 from $140)...Asian indices traded generally lower despite the post-FOMC reversal in US equities, S&P/ASX is the leading decliner among the major bourses, weighed down by lower iron ore prices even though commodities were generally higher on lower USD. In notable after-market commentary, Goldman Sachs pushed back its expectation for US fed funds rate liftoff to December from September. Ahead of tomorrow's BOJ policy decision, a Nikkei report speculated that more board members could break camp with Gov Kuroda on open-ended view for Japan's QQE. Report focusing on BOJ member Sato, who has already suggested that QE decisions should be taken meeting by meeting. Note that Sato would potentially join Kiuchi, who has already advocated on several occasions for a taper in annual monetary base increase to ¥45T.

Nikkei -0.95% Hang Seng +0.22% Shanghai -0.70%

Eur$ 1.1371 JPY 122.89 GBP 1.5838 EURXCHF 1.0456 RUB$53.69 WTI $59.71 (-0.35%)

S&P -0.26% EuroStoxx-0.7% Dax-0.8% SMI -0.99%

Macro :
- Tsipras Says Waiting for Answer by EU on Proposals: Oesterreich
- ECB Said to Raise Greek ELA Ceiling to EU84.1b From EU83b
- FOMC Officials See Longer Run Unemployment at 5.0% to 5.2%
- SNB Says Conditions for Swiss Banking Sector Improved
- Weidmann Says Euro Survival Doesn’t Depend on Greece: Stampa
- Norway Oil Minister Says Oil Industry Not in Crisis, DN Reports

Keep an eye on :
- ABBN VX : ABB Consensus Expectations Too High, UBS Says, Cuts to Sell
- AIR FP : Airbus to Search for Talent in Silicon Valley, FAZ Says
- AIR FP : Premier Airways May Buy 40 Airbus NEO Planes for $4.3b: ET Link
- BAYN GY : Bayer Cropscience Sees Brazil Sales Growth Below 10% in 2015
- GBF GY : Bilfinger to Sell Its Troubled Power Business Unit Within a Year
- ACA FP : Credit Agricole, SocGen Target IPO of Amundi Before End Yr
- DAI GY : Daimler CEO ‘Very Optimistic’ China Sales Momentum to Continue
- OLE SM : Deoleo Won’t Pay Non-Accumulative Remuneration/Preferred Shares
- DTE GY : German Spectrum Reaches EU4.5b, Exceeds 2010 Auction Total
- DGO LN : Dragon Oil shareholder Baillie Gifford to dismiss ENOC’s 750p per share offer as too low - The Times
- FCA IM : Fiat Chrysler Alleged Recall Failings Detailed by NHTSA: Reuters
- GLEN LN : Mick Davis, Glencore Said Bidders for Anglo’s Chile Mines: Rtrs
- HSBA LN : Bradesco to Make Final Offer for HSBC Brasil in July: Valor
- IDR SM : Indra Prepares Job Cuts in Spain, Expansion Says
- MHG NO : Norway Offers 5% Fish Farm Growth W/ Stricter Environment Rules
- NOK1V FH : Nokia may not sell Here after all - Taloussanomat --> http://bit.ly/1dLHer2 (full article in emglish)
- NOVN VX : Novartis Sees ’15 Core Margin Increase in Line W/ FY Guidance, Sees Potential Cosentyx Sales of $4-5 Bln
- STCBV FH : Stockmann to Sell Academic Bookstore to Bonnier Books
- TIT IM : Inwit IPO Priced at EU3.65 Apiece, Shrs Start Trading June 22
- UTILITIES : Utilities Focus to Shift to Div. Quality/Growth, Goldman Says
- VIV FP : *VIVENDI BOARD MAY MEET ON TELECOM ITALIA STAKE BY JUNE 21: SOLE

>>> Devialet raises EUR 25m from existing shareholders (translated)

Devialet raises EUR 25m from existing shareholders http://en.devialet.com/home/#hot-news

Devialet, the French wireless high end audio system manufacturer, has raised EUR 25m from existing shareholders, founders, and employees, French daily Le Figaro reported.

Shareholders Marc Simoncini, Xavier Niel, Jacques-Antoine Granjon, and Bernard Arnault invested EUR 20m and the remainder came from the founders and employees of the group. The report cited co-founder Quentin Sannié as confirming the news.

Devialet reported sales of EUR 10m in 2014 and expects revenues of EUR 50m in 2015.

Le Figaro

>>> Nokia may not sell Here after all

Nokia may not sell Here after all / http://bit.ly/1dLHer2 (full article in emglish)

Nokia, the Finnish telecoms equipment company, may not sell Here, its mapping services, after all, according to Taloussanomat. The Finnish language piece cited Rajeev Suri, the company’s chief executive, who had spoken at the French Parliament.

The piece said, citing Suri, that the company may not sell Here as the company is continuing making its strategic decisions about the unit and it has not yet decided what to do with the company.

The company began its evaluation of the unit’s future in April, it said.

Taloussanomat

>>> Dragon Oil shareholder Baillie Gifford to dismiss ENOC’s 750p per share offe

Dragon Oil shareholder Baillie Gifford to dismiss ENOC’s 750p per share offer as too low – market report

Dragon Oil shareholder Baillie Gifford will today, 18 June dismiss a revised offer of 750p per share for the UK-listed oil and gas group from Emirates National Oil Company (ENOC) as too low, The Times reported. Baillie Gifford will argue that ENOC’s GBP 3.7bn (EUR 5.16bn) bid “materially undervalues” Dragon Oil, but did not cite a source for the quote, the newspaper’s market report section noted.

Baillie Gifford is Dragon Oil’s biggest independent shareholder with a 7.2% stake, the item said. It is expected that the asset manager will lobby for support from other shareholders to push for a higher offer from ENOC, according to the report.

Dragon Oil on Monday, 15 June announced that its board had agreed terms with ENOC on a recommended cash offer of 750p per share.

ENOC holds more than 50% of Dragon Oil’s shares, but its takeover bid needs majority support, the article said.

Baillie Gifford thinks ENOC’s offer does not fully take into account the prospects of Dragon Oil’s South Caspian oilfield, the item continued. The asset manager estimates that the South Caspian field could increase production by a minimum of 5% to 10% per year over the next ten years, giving it one of the highest growth rates of its listed peers, according to the newspaper.

Link to original source

Source The Times

>>> Asian Update

Asian Mid-session Update: NZD falls to 5-year lows on 2-year low New Zealand GDP; China property price slowdown eases


***Economic Data***
- (NZ) NEW ZEALAND Q1 GDP Q/Q: 0.2% (2 year low) V 0.6%E; Y/Y: 2.6% V 3.1%E
- (CN) CHINA MAY HOME PRICES M/M: FALL IN 41 OUT OF 70 CITIES VS 47 PRIOR; Y/Y: FALL IN 69 OUT OF 70 CITIES V 69 PRIOR

***Index Snapshot (as of 02:00 GMT)***
- Nikkei225 -0.6%, S&P/ASX -1.2%, Kospi +0.7%, Shanghai Composite -0.7%, Hang Seng -0.2%, Sep S&P500 -0.2% at 2,085

***Commodities/Fixed Income***
- Aug gold +0.2% at $1,187/oz, Jul crude oil -0.3% at $59.60/brl, Jul copper +0.8% at $2.63/lb
- (CN) PBoC won't conduct open market operations (OMO) in today's session (18th consecutive halt); Net zero position this week (8th consecutive week of neutral position)
- USD/CNY: PBoC sets yuan mid point at 6.1126 v 6.1158 prior setting (strongest Yuan setting since May 20th)
- JGB: (JP) Japan MoF sells ¥399.8B in 40-year bonds, bid to cover: 2.60x v 2.58x prior
- (JP) Japan investors net sellers ¥1.9T in foreign bonds V sold ¥385.2B in prior week; Foreign investors net sellers ¥413B in Japan stocks v bought ¥255.3B in prior week

***Market Focal Points/FX***
Asian indices traded generally lower despite the post-FOMC reversal in US equities that helped Wall St to a 2nd day of gains. S&P/ASX is the leading decliner among the major bourses, weighed down by lower iron ore prices even though commodities were generally higher on lower USD. The Fed statement changes were rather marginal, citing improvement and labor in housing while remaining concerned about the risks to the outlook. The fairly dovish update of staff projections was the culprit behind lower short-term rates, lower USD, higher stocks and higher commodities. Officials lowered 2015 GDP to 1.8-2.0% from 2.3-2.7 and maintained inflation projections below 2% for the foreseeable future. The update to the dot chart was also telling. Even though the median forecast was 2015 stayed at 0.625%, the number of Fed officials who see 0.375% at 2015-end also rose to 5 from 1 in March forecast a far more considerable camp favoring just one 25bp hike this year vs two hikes implied by the median. 2016 and 2017 end median rates also came in by 25bps, as Fed members aligned their outlook closer to a much more gradual liftoff in rates being priced in by the Fed Funds futures markets. In notable after-market commentary, Goldman Sachs pushed back its expectation for US fed funds rate liftoff to December from September.

Tepid recovery in China property prices continued with the release of May data. M/M prices fell in 41 cities vs 47 prior, and calculated average across the top 70 cities showed a 0.2% increase after coming in flat last month. Y/Y nationwide prices fell for the 9th straight month but at a slower pace of -5.7% vs -6.1% prior. China Stats Bureau head said the price recovery was much more evident in 1st tier cities, 2nd tier prices were stable, while speculative 3rd tier mainly saw more declines.

NZD/USD was hit hard by a disappointing Q1 GDP print, falling nearly 90pips to a 5-year lows below $0.6880. 0.2% q/q rise was a 2-year low and just a third of the consensus growth rate, with much slower exports growth of 1.5% v 6.1% prior on soft dairy prices compounded by a big decline in govt expenditures. Economist with ANZ noted the disappointing GDP should solidify the case for a 2nd straight RBNZ rate after an easing surprise earlier this month, while ANZ forecasted a 2nd easing on top of another one that has already been priced in before the end of 2015.

Ahead of tomorrow's BOJ policy decision, a Nikkei report speculated that more board members could break camp with Gov Kuroda on open-ended view for Japan's QQE. Report focusing on BOJ member Sato, who has already suggested that QE decisions should be taken meeting by meeting. Note that Sato would potentially join Kiuchi, who has already advocated on several occasions for a taper in annual monetary base increase to ¥45T.

***Equities***
US afterhours:
- PIR: Reports Q1 $0.08 v $0.08e, R$432M v $434Me; +7.0% afterhours
- BMRN: BMN 111 (vosoritide) improves growth velocity in Children with Achondroplasia in Phase 2 Study; +6.4% afterhours
- ORCL: Reports Q4 $0.78 v $0.87e, R$10.71B v $10.9Be; -6.7% afterhours
- JBL: Reports Q3 $0.49 v $0.49e, R$4.4B v $4.46Be; -7.5% afterhours

Asia-Pac equity news by sector:
- Energy: Oil Search OSH.AU -2.0% (maintains output)
- Materials: Syrah Resources SYR.AU +9.4% (results for coated spherical graphite facility); Fortescue FMG.AU -3.6% (not rushing into deals)
- Consumer Discretionary: Oriental Watch 398.HK -2.9% (reports FY15)

(BLG) fastFT [Reg]: Reinsurer Arch Capital considers bid for Axis


fastFT [Reg]: Reinsurer Arch Capital considers bid for Axis
2015-06-17 20:57:08.101 GMT

http://www.ft.com/fastft/346831/reinsurer-arch-capital-considers-bid-axis

PageExcerpt:
Arch Capital Group, a Bermuda-based reinsurance group, is considering to make bid for smaller rival Axis Capital, in the latest twist in what is now a four-way saga as the insurance industry's consolidation reaches feverish levels. Arch has ...

>>> US After Hours


After Hours Summary: PIR +7.2%, OPGN +1.8%, RATE -13.7%, JBL -7.5%, ORCL -6.4%, OIS -5.4% following earnings/guidance
After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: PIR +7.2%, OPGN +1.8%

Companies trading higher in after hours in reaction to news: CRDS +14.4% (announced patent litigation update including results of Markman Hearing; a Federal Court in the Western District of Texas entered an order in which the Court determined the meaning of 17 disputed claim terms in the patents-in-suit), BMRN +6.8% (announced positive results of a Phase 2 proof-of-concept and dose finding study of BMN 111, an analog of C-type Natriuretic Peptide, in children with achondroplasia), ADVS +1.3% (reported U.S. Department of Justice Clears SS&C's (SSNC) acquisition of Advent),

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: RATE -13.7%, JBL -7.5%, ORCL -6.4%, OIS -5.4%

Companies trading lower in after hours in reaction to news: HERO -62.4% (entered into a restructuring support agreement with Steering Group of senior noteholders holding more than 67% of the co's senior notes), ONVO -7.3% (announced proposed secondary offering; terms not disclosed), SPBC -2.7% (announced proposed public offering of ordinary shares, size not disclosed), ISLE -1.9% (Chief Development Officer John Wilson disclosed sale of 10k shares at average price of ~$19.89, transaction date 6/16/15), CTRP -0.9% (announced an offering of $1 billion convertible senior notes due 2020 and 2025)

>>> US Close Dow+0.17% S&P+0.23% Nasdaq+0.18% Russell-0.04%

Closing Market Summary: Stocks Climb as Fed Stands Pat

The stock market ended the midweek session on an upbeat note with the S&P 500 settling four points below its 50-day moving average (2,104). The benchmark index added 0.2% while the Dow and Nasdaq posted comparable gains.

Equity indices began the trading day with modest gains, but the first half of the session saw a steady retreat with liquidity drying up ahead of the afternoon release of the FOMC policy statement, which called for no change to the current monetary policy stance. However, the accompanying interest rate forecast implied two 25-basis point increases before the year ends. Furthermore, the Fed lowered its 2015 GDP growth forecast range to 1.8-2.0% from the range of 2.3-2.7% that was forecast in March.

Stocks struggled for direction immediately after the release, but rallied to highs during Chair Janet Yellen's press conference, which was viewed as dovish. To that point, Ms. Yellen said the central bank would like to see more "decisive evidence" on inflation and employment before hiking rates.

U.S. Treasuries retreated into the afternoon, but surged back to unchanged in the wake of the FOMC statement. The benchmark 10-yr yield ended at 2.31% after hitting 2.40% in the afternoon. Meanwhile, the Dollar Index (94.27, -0.73) dropped to a new low for the month with the euro climbing to 1.1340 against the greenback.

Speaking of the euro, the single currency advanced even though the day went by without any progress between Greece and its creditors. According to Bloomberg, Greek Prime Minister said his government is ready to give a "big no" to what is perceived to be a bad deal offered by the EU. That being said, the European Central Bank increased Greece's Emergency Liquidity Assistance to $84.10 billion from $83.00 billion.

Eight of ten sectors registered gains with four of six cyclical groups ending ahead of the broader market. The energy sector (-0.2%) was among the early leaders, but returned to its flat line by the close even as crude oil narrowed its decline to 0.2% at $59.77/bbl by the pit close.

Similar to energy, the financial sector (-0.1%) settled behind the broader market while consumer discretionary (+0.5%), technology (+0.2%), industrials (+0.2%), and materials (+0.4%) posted gains. The consumer discretionary sector ended ahead of other cyclical groups thanks to strength among media and retail names while industrials kept pace with the market even as transport stocks struggled.

The Dow Jones Transportation Average lost 0.4%, widening this week's decline to 1.2%. Shares of FedEx (FDX 176.73, -5.40) were largely responsible for the weakness, falling 3.0% after the logistics company reported disappointing earnings and revenue.

Moving to the countercyclical side, consumer staples (+0.5%) and utilities (+0.9%) outperformed while health care (+0.1%) and telecom services (unch) finished behind the broader market. The slight uptick in the health care sector masked relative strength in biotech names that sent iShares Nasdaq Biotechnology ETF (IBB 366.55, +2.17) higher by 0.6%.

Today's participation was relatively light with roughly 700 million shares changing hands at the NYSE floor.

Economic data was limited to the weekly MBA Mortgage Index, which fell 5.5% to follow last week's 8.4% increase.

Tomorrow, weekly Initial Claims (consensus 276K), May CPI (consensus 0.5%), and Q1 Current Account Balance (expected -$116.70 billion) will all be reported at 8:30 ET while May Leading Indicators (expected 0.4%) and the Philadelphia Fed Survey for June (consensus 8.0) will be reported at 10:00 ET.
  • Nasdaq Composite +6.9% YTD 
  • Russell 2000 +5.5% YTD 
  • S&P 500 +2.0% YTD 
  • Dow Jones Industrial Average +0.6% YTD