>>> Asian Update

Asian Mid-session Update: Fortescue spikes on reports of China investment; IMF chief economist sees Greek efforts as insufficient


***Economic Data***
- (SI) SINGAPORE Q1 FINAL GDP Q/Q: 3.2% V 2.0%E; Y/Y: 2.6% V 2.2%E
- (JP) JAPAN APR PPI SERVICES Y/Y: 0.7% V 0.6%E
- (NZ) NEW ZEALAND APR TRADE BALANCE (NZD): 123M V 98ME; 4th month of surplus
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 113.5 v 114.6 prior
- (KR) SOUTH KOREA MAY CONSUMER CONFIDENCE: 105 V 104 PRIOR; 7-month high

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 flat, S&P/ASX +0.7%, Kospi -0.2%, Shanghai Composite +0.9%, Hang Seng +1.4%, Jun S&P500 -0.2% at 2,120

***Commodities/Fixed Income***
- Jun gold +0.1% at $1,205/oz, Jul crude oil +0.2% at $59.82/brl, Jul copper +0.3% at $2.82/lb
- JGB: (JP) Japan's MoF sells ¥1.09T in 1.2% 20-year JGBs; Avg yield: 1.221% v 1.071% prior; bid-to-cover: 2.91x v 2.63x prior
- USD/CNY: PBoC sets yuan mid point at 6.1172 v 6.1165 prior setting; weakest Yuan setting since May 5th
- (CN) PBoC won't conduct open market operations (OMO) in today's session (11th consecutive halt)
- (AU) Australia MoF (AOFM) sells A$200M in 1% 2018 indexed Bonds; avg yield: 0.0427%; bid-to-cover: 5.05x

***Market Focal Points/FX***
China markets are building on impressive gains from the overnight session that took Shanghai Composite up by over 3% to fresh 7-year highs. Shanghai Composite was up nearly 1% late in the morning session, as Premier Li stated the economy is on track to achieve around 7% GDP target for 2015, with April and May data showing continued momentum. Broker names also remained strong despite some cautious sentiment in the press. An FT report noted that more than half of $9.5B in equity raised by brokers in Hong Kong will be used to finance more margin loans. Separately, a CSRC exec warned that brokerages need to strengthen management of higher-risk margin trading business. Hong Kong was still bid higher, with a local press report speculating the ) Shanghai-Hong Kong stock connect overall quota may be abolished.

Australia's Fortescue Metals - the country's third largest iron ore producer - spiked up by over 10% on local press reports that China's Citic Group and Baosteel filed with the foreign investment authority to take a stake in the company. FMG has been particularly impacted by the decline in metal prices, and its founder has recently gone as far as to call for all producers to curb output. Also of note down under, New Zealand trade data saw the 4th straight month of surplus, but both exports and imports were below expectations. Just as Japan trade data overnight, shipments to the US grew double digits (30%), while those to China and Australia were down by just over 15% y/y.

Singapore Q1 Final GDP was much better than initially reported and also topped estimates, however the govt only affirmed 2015 target range of 2-4%. SGD initially rallied but retraced those gains after MAS announced there would be no material change to inflation outlook or monetary policy from the strong GDP report.

EUR/USD was once again in focus among USD majors, falling about 50pips to fresh 4-week lows below 1.0930. IMF chief economist Blanchard remarked the budget reforms proposed by Greece are not sufficient to achieve a budget surplus this year, and more "credible measures are needed to transform this into a surplus and maintain a surplus in the future..." Overnight, Greek govt spokesperson announced Athens is still seeking to have an agreement with creditors by end of May or early June period, and that the govt will attempt to make payments on loans as long as it can. AUD/USD and NZD/USD saw some initial downside, but since retreated to unchanged levels for the session at 0.7830 and 0.7310. USD/JPY picked up about 30pips to trade within 15pips of its multi-month March highs around ¥122.

***Equities***
US equities / ADRs:
- TWC: Charter said to be closing in on a deal to acquire Time Warner Cable at $55B or $195/shr; Follow-up: According to CNBC's Faber, the $195/shr deal has been signed.

Notable movers by sector:
- Consumer discretionary: Tingyi Cayman Islands 322.HK -3.8% (Q1 result)
- Financials: CITIC Securities 6030.HK +2.8%, Haitong Securities +3.9% (Hong Kong and China mutual fund recognition); Investa Office Fund IOF.AU +1.6% (possible bid)
- Industrials: Sany Heavy 631.HK +3.5% (clarification on cooperation); Lifan Industry 601777.CN +10.0% (private placement)
- Technology: Tsinghua Unisplendour 000938.CN +10.0% (private placement); Leshi Internet Info & Tech Co Beijing 300104.CN -2.0% (private placement, Chairman to reduce holdings); Qingdao Haier Co Ltd 600690.CN +7.2% (to acquire assets); Toshiba Corporation 6502.JP -0.1% (speculation on dividend suspension)
- Materials: Fortescue Metals Group FMG.AU +9.5% (speculation on FIRB applications); Norton Gold Fields NGF.AU +8.7% (Zijin Mining to raise offer price); Cheil Industries Inc 028260.KR +14.4% (merger speculation)
- Energy: AGL Energy AGL.AU +6.7% (reaffirms guidance, asset divestment)

(les Échos) John Malone prêt à avaler Time Warner Cable

John Malone prêt à avaler Time Warner Cable.

Un face-à-face entre l'élève et le maître. Voilà le combat auquel l'Amérique - et le monde - du business se préparait, avec gourmandise, à vivre depuis quelques jours. Le duel pourrait tourner court. Dans la bataille censée opposer deux géants du câble, le Français Patrick Drahi et l'Américain John Malone, pour la conquête de Time Warner Cable, c'est bien le maître qui devrait l'emporter.

Selon le « Financial Times » et Bloomberg, le groupe Charter, propriété de John Malone, aurait fait une offre à 55 milliards de dollars pour acquérir le numéro deux du secteur aux Etats-Unis, soit 195 dollars par action (+ 15 % par rapport au cours de vendredi). L'offre, en passe d'être acceptée, se décomposerait pour moitié en cash et pour l'autre moitié en actions Charter.

Ce n'est pas la première fois que John Malone, bien implanté en Europe avec Liberty Global, s'attaque à Time Warner Cable. Il avait déjà fait une première tentative en 2013 avec Charter, sans arriver à convaincre les dirigeants et actionnaires du groupe. Ceux-ci avaient préféré convoler avec Comcast, le leader du secteur, pour créer un nouveau mastodonte, avec 30 millions d'abonnés. Les régulateurs qui ont posé leur veto à cette mégafusion, en avril dernier, ont redonné espoir à John Malone, qui avait refait le tour des banques et des investisseurs depuis pour construire une nouvelle offre. La transaction, si elle se confirme, serait aussi scrutée de près par l'anti-trust américain, alors que Charter a déjà annoncé la semaine dernière le rachat de Bright House Networks, le 6e « câblo » américain.

L'offensive de Patrick Drahi a peut-être précipité les choses. En annonçant le rachat de Suddenlink mercredi dernier, le nouveau magnat français des télécoms avait affiché ses ambitions dans le secteur du câble américain. Malgré une transaction valorisée à 9,1 milliards de dollars, le groupe Altice avait indiqué qu'il était prêt à mener d'autres opérations et à participer à la consolidation en cours outre-Atlantique. Il n'en fallait pas plus pour que la machine à rumeurs s'emballe. Plusieurs médias anglo-saxons tablaient déjà sur l'imminence d'une offre, alors que Patrick Drahi avait été vu en compagnie de Rob Marcus, le PDG de Time Warner, à New York la semaine dernière. Une surenchère est toujours possible. Mais « c'est tout de même un très gros morceau pour Altice, prévient un analyste. Ils ont regardé le dossier, et ils ont eu raison. Mais John Malone a une vraie longueur d'avance. »

Selon nos informations, les dirigeants d'Altice sont rentrés ce week-end en Europe, après les quelques jours passés aux Etats-Unis pour le rachat de Suddenlink. Patrick Drahi a d'autres obligations à respecter cette semaine : mercredi, il sera auditionné par la Commission des affaires économiques de l'Assemblée nationale. L'expansion tous azimuts d'Altice sera certainement au coeur des débats.

(reuters) Altice seeks financing for Time Warner Cable bid: sources

Altice seeks financing for Time Warner Cable bid: sources

French telecommunications group Altice SA is talking to several banks about raising debt for a potential bid for Time Warner Cable Inc, the second-largest U.S. cable operator, according to people familiar with the matter.

The talks are an important step for Altice in putting together a bid for Time Warner Cable, which is also being courted by Charter Communications Inc after Comcast Corp abandoned its $45.2 billion offer for Time Warner Cable last month over U.S. antitrust concerns.

Altice is in discussions with banks including JPMorgan Chase & Co, Nomura Co Ltd, BNP Paribas SA, Societe Generale, Barclays Plc and Royal Bank of Canada about a financing package to support a proposed acquisition, the people said.

The size of the package has yet to be determined and there is no certainty that a bid will materialize, some of the people said. The financing could comprise of a dollar-denominated high-yield bond, as well as loans, according to one of the sources. The sources asked not to be identified because the talks are confidential.

Shares of Time Warner Cable rose 2.7 percent to $170.0 in Friday morning trade in New York, giving the company a market capitalization of about $48 billion. Shares of Altice were up 2.5 percent at 130.9 euros in Amsterdam, valuing the company at around $32 billion.

Earlier this week, Altice agreed to buy U.S. regional cable company Suddenlink Communications for $9.1 billion from private equity investors, making a first move across the Atlantic.

After spending 36 billion euros ($40 billion) on acquisitions in the past 18 months, Altice will have to be mindful of its finances, according to credit analysts. The Moody's rating agency put Altice under review for a possible downgrade this week, following the Suddenlink deal.

"They would probably need to issue equity if they want to do a big deal in the next twelve months," said Osant Jaeger, a credit analyst at Moody's.

Altice's controlling shareholder Patrick Drahi and Time Warner Cable Chief Executive Robert Marcus met in New York on Wednesday as part of preliminary talks between the two companies, according to two of the sources.

Altice and Time Warner Cable declined to comment. Representatives for the banks either declined to comment or did not respond immediately to requests for comment.

>>> Emerson Electric indicates it is pursuing potential acquisition targets

Emerson Electric indicates it is pursuing potential acquisition targets

Emerson Electric (NYSE: EMR) chairman and CEO David Farr made the following statement in the company's 2Q15 earnings release, indicating that he is planning to pursue substantial acquisition targets.

"Emerson faced significant challenges and market headwinds in the second quarter as economic conditions affected demand across our businesses," said chairman and CEO David N. Farr. "The strength of the U.S. dollar, lower oil prices, and a slowdown in industrial spending dramatically reduced order rates during the quarter resulting in growth below our expectations. At the end of March, trailing three-month underlying orders were negative 8 percent. By taking aggressive actions now and over the next six to nine months, we will be well-positioned to capitalize on new opportunities as the markets recover."

"As we announced at our February investor conference, we fully understand the issues we face with our portfolio composition and end-market headwinds, even though the headwinds are more severe than we anticipated," Farr continued. "We will continue to execute the tactical and strategic actions required to create long-term shareholder value. Our actions have been underway since February, but they will now need to be broader, deeper, and properly measured against our long-term objectives."

>>> Altice seeks financing for possible Time Warner Cable bid

Altice seeks financing for possible Time Warner Cable bid 

Altice, the French Telco, is discussing with several banks to raise debt for a possible bid for Time Warner Cable (NYSE: TWC), the second-biggest US cable operator, according to a newswire report. The talks are a vital step for Altice in putting together a bid for Time Warner Cable, according to Reuters, citing people familiar with the matter.

Time Warner Cable is also being courted by Charter Communications after Comcast Corp abandoned its USD 45.2bn offer for it last month over US antitrust concerns.

Altice is in discussions with banks, including JPMorgan Chase, Nomura, BNP Paribas, Societe Generale, Barclays and Royal Bank of Canada about a financing package to support a proposed acquisition, the unidentified people said in the report, dated 22 May.

The size of the package has yet to be determined and there isn’t certainty that a bid will materialize, some of the people said. The financing could comprise of a dollar-denominated high-yield bond, as well as loans, according to one of the sources. The sources asked not to be identified because the talks are confidential.

Shares of Time Warner Cable surged 3.4% in heavy trading to close at USD 171.18 on the New York Stock Exchange Friday, giving the cable operator a market capitalization of about USD 48.4bn. The bourse in New York is closed Monday for the Memorial Day US holiday.

Altice agreed to buy US regional cable company Suddenlink Communications earlier last week for USD 9.1bn from private equity investors, marking its first move across the Atlantic.

After spending EUR 36bn (USD 40bn) on acquisitions in the last year and a half, Altice will have to be mindful of its finances, according to credit analysts. Moody's put Altice under review for a possible downgrade last week, following the Suddenlink acquisition.

Altice would probably need to issue equity if they want to do a big deal in the next year, said Osant Jaeger, a credit analyst at Moody's, according to the newswire report.

Altice's controlling shareholder, Patrick Drahi, and Time Warner Cable Chief Executive Officer Robert Marcus met in New York last Wednesday, 20 May, as part of preliminary talks between the two companies, according to two of the sources cited by the newswire.

Altice and Time Warner Cable declined to comment. Representatives for the banks either declined to comment or didn’t respond immediately to requests for comment when the newswire report was published last Friday.




Source Newswire Round-up, Wall Street Journal
Value

(BFW) MORE: Charter Said to Near Deal to Buy TWC for $195/Shr

MORE: Charter Said to Near Deal to Buy TWC for $195/Shr
2015-05-25 15:07:59.523 GMT


By Alex Sherman and Ed Hammond
(Bloomberg) -- Charter said to near deal to buy Time Warner
Cable; deal could be announced as soon as tmrw, people familiar
with the matter told Bloomberg.
* CHTR will pay $100/shr in cash, rest in stock
* Plans to merge Bright House Networks into combined co.
* Spokespeople for both cos. declined to comment
* NOTE: May 22, Time Warner Cable Said in Sale Talks With
Altice, Charter
* NOTE: May 22, Altice Said to Be in Talks w/ Banks to Finance
TWC Bid: Reuters
* Link to Story


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

To contact the reporters on this story:
Alex Sherman in New York at +1-212-617-8278 or
asherman6@bloomberg.net;
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net
To contact the editor responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net

(BFW) *CHARTER SAID TO NEAR DEAL TO BUY TIME WARNER CABLE FOR $195/SHR

BFW 05/25 14:59 Charter Said to Near Deal to Buy Time Warner Cable for $195/Shr
BN 05/25 14:58 *CHARTER, TIME WARNER CABLE PLAN ANNOUNCEMENT AS SOON AS TMW
BN 05/25 14:58 *CHARTER SAID TO PLAN TO MERGE BRIGHT HOUSE INTO COMBINED CO
BFW 05/25 14:57 *CHARTER SAID TO NEAR DEAL TO BUY TIME WARNER CABLE FOR $195/SHR
BN 05/25 14:57 *CHARTER SAID TO NEAR DEAL TO BUY TIME WARNER CABLE FOR $195/SHR
Charter Said to Near Deal to Buy Time Warner Cable for $195/Shr
2015-05-25 15:00:08.513 GMT


By Alex Sherman and Ed Hammond
(Bloomberg) -- Charter also plans to merge Bright House
into combined co, people familiar with the matter say.
* Cos to announce deal as soon as tomorrow.


Link to Company News:{ALT US <Equity> CN <GO>}
Link to Company News:{ATC NA <Equity> CN <GO>}
Link to Company News:{CHTR US <Equity> CN <GO>}
Link to Company News:{TWC US <Equity> CN <GO>}

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

To contact the reporter on this story:
Alex Sherman in New York at +1-212-617-8278 or
asherman6@bloomberg.net

To contact the editor responsible for this story:
Phil Serafino at +33-1-5530-6277 or
pserafino@bloomberg.net

(BFW) Air France Flight Escorted to JFK After Anonymous Threat: ABC7

Air France Flight Escorted to JFK After Anonymous Threat: ABC7
2015-05-25 14:48:05.971 GMT


By Rita Devlin Marier
(Bloomberg) -- U.S. Authorities scrambled fighter jets
because Air France did not immediately respond to U.S.
government requests for information, ABC 7 NY reports.
* Not believed to be a credible threat


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

To contact the reporter on this story:
Rita Devlin Marier in Toronto at +1-416-203-5718 or
rdevlin5@bloomberg.net
To contact the editors responsible for this story:
Clyde Eltzroth at +1-212-617-1879 or
celtzroth1@bloomberg.net
Beth Mellor

(BFW) MORE: Greece Hasn’t Asked for Bailout Extension: Govt Spokesman

MORE: Greece Hasn’t Asked for Bailout Extension: Govt Spokesman
2015-05-25 10:56:28.18 GMT


By Eleni Chrepa
(Bloomberg) -- Greece will strive to meet all debt payments
for as long as it can, govt spokesman Gabriel Sakellaridis tells
reporters in Athens.
* Greek govt doesn’t impose “deadlines, ultimatums or
blackmails,” but it is absolutely necessary to reach
agreement with creditors soon, due to liquidity problems
* Increase in discount ECB applies to Greek collateral would
complicate bailout talks; recent small increase on Emergency
Liquidity Assistance ceiling reflects smaller deposit
outflows from Greek banks
* Some comments by euro area officials are verging on the
limit of insult; everyone should show responsibility and
respect at this crucial time
* Greek govt has no problem in meeting end-May salaries,
pensions payments
* Govt fully supports Finance Minister Yanis Varoufakis, no
cabinet reshuffle planned
* Cash crunch has caused asphyxiation to Greek economy
* Greek govt wants to advance relations with Israel, though
its position on Middle East hasn’t changed
* NOTE Earlier: Greek Capital Control Scenarios Unfounded,
Govt Spokesman Says Link



For Related News and Information:
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To contact the reporter on this story:
Eleni Chrepa in Athens at +30-210-741-9034 or
echrepa@bloomberg.net
To contact the editors responsible for this story:
Jerrold Colten at +39-02-8064-4261 or
jcolten@bloomberg.net
Marco Bertacche

>>> Greece govt spokesperson: Reiterates to seek to have an agreement with credi

Greece govt spokesperson: Reiterates to seek to have an agreement with creditors by end of May or early June period - financial press 
- Will strive to make all payments (internal and external obligations) but country's liquidity position is well known
- Have funds to make pensions and salaries
- Reiterates view that capital controls not on the agenda; such ecenarios are unfounded
- Not looking at bundling all IMF payments due in June
- Greece and creditors converging over primary surplus
- Govt fully backs Finance Ministry Varoufakis
- Govt has not asked for an extension of the current bailout agreement nor has it been proposed to them