>>> US Early premarket gappers

Early premarket gappers

Gapping up: AEZS +33%, ATML +23.8%, PLUG +8.5%, SAND +5.3%,  SHPG +3.4%, E +2.9%, STO +2.3%, CYBR +2.2%, INFY +2.2%, RIG +2%,  SNN +1.5%, NVO +1.4%, FCX +1.1%, UN +1%, SLW +0.8%, BAC +0.6%

Gapping down: DAKP -36.4%, CANF -8.2%, TPUB -4.2%, GPRO -4%, BUD -2.5%, PLAY -2.5%, CHK -2.5%, TLN -2%, BABA -1.9%
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>>> SAB hired GS as défence adviser

Betaville

SAB Miller said to have formally appointed Goldman Sachs as defence adviser; speculation in talks with Diageo

Here is a juicy jackanory to set your pulses racing on a Monday morning.

I hear from top sources that SAB Miller has formally appointed heavyweight investment bankers from Goldman Sachs as defence advisers alongside uber grandee dealmakers Simon Robey and Simon Warshaw, Morgan Stanley and JP Morgan Cazenove.

The move signifies SAB Miller clearly expects Anheuser-Busch Inbev and 3G to come up with a formal offer after being outed last week as preparing a takeover bid - although given what has just happened with RSA (see this morning's statement) the FTSE 100 brewer is likely to be particularly cautious about provisionally accepting any takeover offer and allowing the Brazilians to do due diligence.

Still, my man reckon in dark glasses reckons SAB Miller and its army of defence advisers will be working furiously hard on ways to get the best price out of the boys from Brazil.

One option, speculated my man, is a potential tie-up with UK-listed rival Diageo.

So watch this space...or tune into Tip TV later this morning.

SAB Miller declined to comment.

>>> Asian Update Nikkei-1.96% Hang Seng -1.30% Shanghaï +0.67%

Asian Mid-session Update: Markets decidedly lower after hope for global growth looks bleak

***Economic Data***
- (NZ) NEW ZEALAND Q3 WESTPAC CONSUMER CONFIDENCE: 106.0 V 113.0 PRIOR (lowest level since Sept 2012)
- (UK) SEPT RIGHTMOVE HOUSE PRICES M/M: 0.9% v -0.8% PRIOR, Y/Y 6.4% v 6.4% PRIOR
- (NZ) NEW ZEALAND AUG RETAIL CREDIT CARD SPENDING M/M: 1.1% V 1.7% PRIOR; Y/Y 10.5% V 9.7% PRIOR
- (TH) Thailand Aug Auto Sales y/y: -9.9% v -12.5% prior
- (CO) Colombia July Trade Balance: -$1.97B v -$1.0Be (highest since Jan)

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 closed, S&P/ASX -2.5%, Kospi -1.6%, Shanghai Composite +0.5%, Hang Seng -1.3%, Dec S&P500 -0.5% at 1,940

***Commodities/Fixed Income***
- Dec gold flat at $1,137/oz, Nov crude oil +0.7% at $45.37/brl, Dec copper -0.2% at $2.38/lb
- (AU) Australia MoF (AOFM) sells A$700M in 4.25% 2026 Bonds; avg yield: 2.8083%; bid-to-cover: 2.12x
- (CN) China MOF sells 20-yr bonds, avg yield 3.74%
- (KR) South Korea sells 20-yr bond, avg yield 2.325%
- USD/CNY: (CN) PBoC sets yuan mid point at 6.3676 v 6.3607 prior setting
- USD/KRW: Onshore opens at KRW1,172 v KRW1,162 prior close

***Market Focal Points/FX***
Asian markets remained decidedly pessimistic carrying a risk adverse tone after the FOMC held off on any action in the US on Friday. Saw some flow out of riskier assets and into debt vehicles, Australian and New Zealand bonds saw yields decline ~3-5bps.LME copper fell to a 2-week low of $5,240/ton as worries continue that China is truly slowing and will not be consuming at prior rates.

Greece elections held over the weekend saw the Syriza party take yet another victory and plan to form a government within 3-days. EUR/USD seemed unconcerned even gaining slightly to 1.1318 with a bottom of 1.1282 on a glimmer of reduced turmoil.

New Zealand consumer confidence fell to a 3-year low causing the kiwi to drop 0.2% to 63.67. Yen was little changed with Japan closed until Wednesday session. The USD/Won fell nearly 0.8% to 1,172.55

Australia new PM Turnbull announced his new cabinet, with former Treasurer Hockey vowing to step down from Parliament with no plans to seek a front bench position in the new government. Strength in Asciano was attributed to him being replaced and the FIRB will approve takeover by Brookfield Infrastructure for A$12B in cash and stock (announced in Aug).

The independent survey, China Q3 Beige Book, indicated that Chinese companies are too pessimistic over economy and that the country is not collapsing. The survey attributes the excessively negative view to the June stock market collapse and unexpected currency action in August. The survey said, "Those touting China's sudden fragility are either exaggerating current problems or have entirely missed the slowdown of the past several years."

***Equities***
US equities / ADRs:
- XRS: To acquire Firstleap Education, financial terms not disclosed
- PETCO.IPO: Renewed talk that KKR, Friedman and Hellman have made prelim offers - NY Post
- BABA: $105B (63% of shares) lockup period has ended

Notable movers by sector:
- Consumer discretionary: COFCO Tunhe Co 600737.CN +10.0% (updates on SOE reform); Fonterra FCG.NZ +1.8% (updates on job cut)
- Financials: Sunac China Holdings 1918.HK +5.5% (not to proceed agreement with Yurun); China Vanke 000002.CN +0.2% (first batch of share repurchase); Suning Universal Co 000718.CN +7.2% (sets up jv for tv and game business)
- Industrials: China Railway Group 601390.CN +7.0% (restructuring plan);
Hubei Aviation Precision Machinery Technology 002013.CN +10.0%, AVIC Aircraft 000768.CN +5.1%, Sichuan Chengfei Integration Technology 002190.CN +4.3% (China boosts SOE reform in several sectors); Worley Parsons WOR.AU -4.3% (contract signed)
- Technology: Coolpad Group 2369.HK +12.9% (updates on jv with Qihu); Hon Hai Precision Industries 2317.TW -1.5% (speculation that Hon Hai bids for LCD unit)
- Materials: China Polymetallic Mining 2133.HK -4.6% (leadership changes); Lynas Corp LYC.AU -1.3% (FY15 result); Beadell Resources BDR.AU -1.9% (H2 guidance); Gold Road Resources GOR.AU +1.2% (speculation on bid)
- Energy: Santos STO.AU -1.1% (CEO's comment)
-Telecom: China Mobile 941.HK +0.1% (Aug operation data)
- Utilities: China National Nuclear Power Corporation 601985.CN +2.8% (UK Fin Min's comment)

WSJ : Overheard: A Chorus of Warnings on Valuations

Overheard: A Chorus of Warnings on Valuations

After opting to hold rates lower last week, Janet Yellen didn’t express concern about froth in the stock market or in biotech valuations.

But the Nasdaq Biotechnology Index is up by more than 40% since she warned about it during Congressional testimony in July 2014. Pharmaceutical executives are less sanguine. For example, Roche Holding’s chief, explaining why it is unlikely to pursue deals for later-stage products, used the word “bubble” in an interview with Reuters last Tuesday. This followed similar warnings by Eli Lilly’s boss in July. True, pharmaceutical companies looking for products would love to see cheaper biotech valuations as they hunt for acquisitions. But Ms. Yellen had no ulterior motives when prices were even lower.

Even if prices have defied such biotech skepticism, the chorus of warnings is only getting louder.

>>> Ferrexpo mulls appointing adviser for restructuring which could involve stak

Ferrexpo mulls appointing adviser for restructuring which could involve stake sale 

Ferrexpo, the UK-listed iron-ore producer, is looking into appointing an external adviser to work on a wider restructuring process than is already under way, The Sunday Times reported without identifying sources.

The restructuring options could include a cut to the dividend, cost-cutting measures or a stake sale to a party seeking a strategic investment, the report said. It noted that the company is cash-generative and may thus be an attractive prospect to a potential buyer.

The board of Ukraine-based Ferrexpo has scheduled an emergency meeting for later this week following last week’s collapse of Bank Finance and Credit, a bank which holds USD 174m of Ferrexpo’s total USD 280m cash on deposit, the report said. It noted that Ferrexpo’s share price plummeted by one-third on news of Bank F&C’s insolvency, leaving the iron-ore business with a GBP 280m (USD 435m) market cap.

Ferrexpo has net debt of USD 653m and had already entered negotiations to amend some of its loan terms prior to Bank F&C’s insolvency, the report said.

Ferrexpo is 50% owned by tycoon Kostyantin Zhevago, who also owns Bank F&C, the item stated, adding that a 24% Ferrexpo stake is owned by the investment firm BXR. Zhevago’s willingness to come up with new funds may prove key to the company’s future ownership, the report said.

Sunday Times

WSJ : For T-Mobile It’s a September to Remember

For T-Mobile It’s a September to Remember

T-Mobile is on pace to best its second-quarter subscriber additions, and it looks like an increasingly attractive acquisition target.

What a difference 12 days can make for T-Mobile US.

Speaking last Friday at an investor conference, Chief Executive John Legere said the wireless carrier had already surpassed the 2.1 million net subscriber additions it posted in the second quarter with 12 days left in the third. Its net additions for postpaid customers and postpaid phone subscribers are also on track to exceed second-quarter figures.

The carrier, whose shares have risen 37% over the past year, has been snatching market share, sending the rest of the industry reeling. Shares of Verizon Communications and AT&T have fallen by 10% and 7% over the period, respectively. Sprint’s are down by 35%.

For T-Mobile, as for the rest of its industry, the last 12 days of the quarter are particularly meaningful. For one, September usually brings a stepped-up pace of subscriber activity as people return from summer vacations and school starts. And the retail launch of Apple’s new iPhone is scheduled for this Friday. That should make for a busy final weekend of the quarter in T-Mobile’s retail stores.

Granted, the carrier’s growing subscriber base makes network investment even more important. But Mr. Legere said his company would bid aggressively in a coming government spectrum auction. He noted that cable providers might seek mobile assets as content moves to the Internet. That encouraged the notion that they could target T-Mobile.

For investors, there are still plenty of reasons to ring up T-Mobile.