>>> What to look at today - 28th of July 2015

Dow-0.73% S&P-0.61% Nasdaq-0.96% Russell-0.93% VIX
US Market close lower, closing 200d MA...Chinese Market plunge 8.5%, biggest one day decline in more than 8y, Shanghai is down 28% from June highs. Europe followed also chinese market closing lower. Nine sectors finished the day in negative territory with all six cyclical groups ending in the red. energy sector (-1.4%) settled at the bottom of the leaderboard while crude oil fell to early April levels, ending lower by 1.6% at $47.39/bbl. Utilities was the only sector closing higher(+1.3%), healthacre was boosted by TEVA+16,4%. Volume were ahead of average @ 900mil shares...US after Hours KN +10.2%, GIG +7.2%, MSTR +6.6%, AMDA -40.6%, AMKR -12.6%, BIDU -7.0% following earnings/guidance...Shanghai Composite opened down by over 4% and extended those declines above 5% to new 2-week lows in the opening hour, but has pared most of those losses and entered midday break down just 1% but back in negative territory now down almost 3%. Policymakers are looking to relieve the concerns that sent the markets plummeting in the afternoon session overnight, with securities regulator CSRC insisting that its China Securities Finance (CSF) is still present in the market and prepared to increase stock purchases if necessary.PBoC also promised to do its part, reiterating it will maintain "prudent" monetary policy, keep moderate liquidy, and continue supporting economic development. To that end, the PBoC injected another CNY50B via its 7-day reverse repo open market operations. PBoC also maintained that economic indicators are showing some modest improvement. In contrast, the planning body NDRC warned the economy is facing downward pressure, promising to boost construction of key projects in H2. In equities, Baidu beat on the top and bottom lines, but shares traded down by over 6% in extended US session. Analysts remarked that markets are skeptical of China internet giant's continued aggressive spending plans.

Nikkei +0.03% Hang Seng +1% Shanghai -2.75%

Eur$1.1066 JPY 123.58 GBP 1.5570 EURCHF 1.0661 RUB $59.7475 WTI $$&.18 (-0.44%)

S&P +0.42% EuroStoxx +0.40% Dax +0.26% SMI +0.45%

Macro :
- China May Widen Yuan Trading Band ‘Soon’, UBS Wang Tao Says

Keep an eye on :
- ANA SM : Acciona Mulls Merging Renewables With KKR, Confidencial Says
- ALO FP : Alstom to Accept Lower Purchase Price From GE to Get EU Approval
- ALO FP : Alstom Offer to GE Equals EU1 Per Share for French Co.: JPMorgan
- AIXA GY : Aixtron 2Q Sales Miss, Net Loss Exceeds Ests.
- BP/ LN : BP Given 30 Days to Pay $1b in Gulf Coast Settlements: NYT
- DB1 GY : Deutsche Boerse 2Q Net Income Rises to EU583.1m vs EU491.2m y/y, Sees Net Rev. Increases of 5%-10% Annually
- DECB BB : Deceuninck Vice Chairman Van Eeckhout Buys EU820,058 of Stock
- DIA SM : Dia 2Q Adj. Ebitda Beats Ests.
- ELE SM : Endesa 1H Net EU870m, Beating Estimate of EU754.6m
- EIT IM : EI Towers Plans Small Acquisitions Through Unit: Repubblica
- FCA IM : Fiat Chrysler Offering Incentives to Participate in Recall
- GFT GY : GFT to Sell Emagine Unit, Reduces 2015 Forecasts to Reflect Sale
- KER FP : Kering 2Q Gucci, Luxury Unit Comp Sales, 1H Profit Beat Ests.
- LUX IM : Luxottica 2Q Adj. Oper. Income Beats Ests., Confirms Outlook
- MAIL LI : Sony Drops Lawsuit, Reaches Deal With Mail.ru’s VK: Vedomosti
- MAN GY : MAN Cuts FY Forecast, Takes EU170m Restructuring Charge
- MERY FP : Mercialys Raises 2015 FFO Growth Target to 3% From 2%
- ML FP : Michelin 1H Profit EU1.26b, Est. EU1.29b; FY Forecast Confirmed
- MXTV FP : NextRadioTV CEO Weill Offers to Quit Iliad Board: Les Echos
- ORA FP : Orange 2Q Sales, Ebitda Exceed Ests.; Keeps Outlook Unchanged
- ORA FP : Orange Will Be One of Europe’s Consolidators, CFO Says
- RSA LN : Zurich Evaluating Potential Offer for RSA Insurance Group
- SAGA LN : Saga Shares Offered at 205p to Market Price in Block Sale: Terms
- SAN FP : Sanofi Signs $2.2b Pact W/ Regeneron on Immuno Cancer Therapies
- SAN FP : Sanofi Will Recommend Dengue Vaccine For Older Children
- HO FP : Thales Close to Getting EU1B London Metro Contract: Tribune
- VOW3 GY : VW Passes Toyota to Lead Global Sales in First Half of 2015

>>> Europe : Brokers Upgrades & Downgrades - 28th of July 2015

>>> Up
*AVEVA RAISED TO NEUTRAL VS SELL AT GOLDMAN
*BWIN.PARTY RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*PHILIPS RAISED TO BUY VS HOLD AT SOCGEN
*PHILIPS RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS

>>> Down
*DRAX CUT TO REDUCE VS HOLD AT HSBC
*EUTELSAT CUT TO HOLD VS BUY AT HSBC
*LAFARGEHOLCIM RATED REDUCE AT HSBC; WAS RESTRICTED

>>> PT Change


>>> Initiation
*BANKIA RATED NEUTRAL VS NOT RATED AT JPMORGAN
*CRH RATED HOLD AT HSBC; WAS RESTRICTED
*INWIT RATED NEW NEUTRAL AT UBS, PT EU4.30
*INWIT RATED NEW OUTPERFORM AT MEDIOBANCA; PT EU5.12
*INWIT RATED NEW OUTPERFORM AT MEDIOBANCA; PT EU5.12
*NORDAX GROUP RATED NEW EQUALWEIGHT AT MORGAN STANLEY, PT SK45.3

>>> Call
>> Country
*U.K. EQUITIES CUT TO BENCHMARK BY CREDIT SUISSE’S GARTHWAITE
>> Index
*FTSE 100 YR-END TGT CUT TO 7,000 VS 7,450 AT CREDIT SUISSE

(BFW) Zurich Evaluating Potential Offer for RSA Insurance Group

BFW 07/28 05:16 *ZURICH EVALUATING POTENTIAL OFFER FOR RSA INSURANCE GROUP
BN 07/28 05:16 *ZURICH SAYS NO ASSURANCE ANY OFFER WILL BE MADE
BN 07/28 05:16 *ZURICH SAYS NO FIRM INTENTION TO MAKE OFFER
BN 07/28 05:15 *ZURICH EVALUATING POTENTIAL OFFER FOR RSA INSURANCE GROUP
Zurich Evaluating Potential Offer for RSA Insurance Group
2015-07-28 05:18:56.149 GMT


By Chris Malpass
(Bloomberg) -- Zurich Insurance confirms it is evaluating a
possible offer for RSA Insurance, says no assurance an offer
will be made.

* Further announcement to be made as appropriate
* Statement

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

To contact the reporter on this story:
Chris Malpass in Berlin at +49-30-70010-6234 or
cmalpass@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
Chris Malpass

>>> After Hours Summary: KN +10.2%, GIG +7.2%, MSTR +6.6%, AM

After Hours Summary: KN +10.2%, GIG +7.2%, MSTR +6.6%, AMDA -40.6%, AMKR -12.6%, BIDU -7.0% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: KN +10.2%, GIG +7.2%, MSTR +6.6%, MPWR +2.1%, EMN +1.7%, MSL +0.5%, VLRS +0.4%, HIG +0.2%, SWFT +0.2%, ARE +0.1%, AVB +0.1%, TMK +0.1%

Companies trading higher in after hours in reaction to news: SAEX +17.3% (awarded a contract for ocean-bottom marine seismic data acquisition services, valued at ~$47 million), MSTR+6.6% (announced the appointment of Phong Le as CFO effective on or about August 24, 2015; co also reported earnings), ASTI +3.4% (disclosed the mutual termination of its May agreement regarding the purchase and sale contract of its Thornton, Colorado headquarters building), ACI +1.4% (announced that for administrative purposes it is postponing the previously announced one-for-ten reverse stock split of common stock), HZNP +1.2% (announced a collaboration with Fox Chase Cancer Center to study ACTIMMUNE in combination with PD-1/PD-L1 inhibitors in various forms of cancer including advanced urothelial carcinoma and renal cell carcinoma), SPWR +1.2% (announced that it has acquired 1.5 gigawatts of U.S. solar power plant development assets from Australia-based Infigen Energy)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: AMDA -40.6%, AMKR -12.6%, CKEC -11.7%, BIDU -7.0%, TCPC -2.3%, CR -1.7%, PRAH -1.4%, TACO -1.4%, ALSN -1.3%, AGNC -0.8%, CDNS -0.1%, PCL -0.1%, MNK -0.1%

Companies trading lower in after hours in reaction to news: AMDA -40.6% (announced the FDA has requested co provide 24-month clinical performance data for pending 510(k) submission for the Valeo C Interbody with CsC Osteo-Conductive Scaffolding; co also provided in-line Q2 rev guidance), CARA -6.7% (commenced an underwritten public offering of shares of its common stock of up to $65 mln), EGLT -5.4% (to offer and sell shares of its common stock in an underwritten public offering; size not disclosed), ADPT -1.5% (announced an offering of 2.75 mln shares of common stock; ~1.91 mln shares to be sold by co, ~844K shares to be sold by Sterling Partners shareholder group)

>>> Asian Update

Asian Mid-session Update: Volatility continues as China's CSRC looks to contain damage


***Economic Data***
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 112.5 v 111.8 prior
- (VN) Vietnam July Trade Balance: -$300M v -$400Me

***Index Snapshot (as of 04:00 GMT)***
- Nikkei225 -0.3%, S&P/ASX +0.2%; Kospi -0.2%, Shanghai Composite -1.0%, Hang Seng +1.3%, Sept S&P500 +0.4% at 2,072

***Commodities/Fixed Income***
- Aug gold -0.3% at $1,093/oz, Sept crude oil -0.7% at $47.02/brl, Sept copper +0.5% at $2.36/lb
- (CN) China Iron and Steel Association: China H1 steel production 410M tonnes, -1.3% y/y (1st decline in 20 years)
- SLV: iShares Silver Trust ETF daily holdings fall to 10,165 tonnes from 10,227 tonnes
- (CN) PBoC to inject CNY50B in 7-day reverse repos (10th consecutive injection)
- USD/CNY: PBoC sets yuan mid point at 6.1154 v 6.1176 prior setting; strongest Yuan setting since July 15
- JGB: (JP) Japan MoF sells ¥2.29T in 2-yr JGBs; Avg yield: 0.005% v 0.001% prior; bid to cover: 3.84x v 3.71x prior

***Market Focal Points/FX***
- Shanghai Composite opened down by over 4% and extended those declines above 5% to new 2-week lows in the opening hour, but has pared most of those losses and entered midday break down just 1%. Policymakers are looking to relieve the concerns that sent the markets plummeting in the afternoon session overnight, with securities regulator CSRC insisting that its China Securities Finance (CSF) is still present in the market and prepared to increase stock purchases if necessary. PBoC also promised to do its part, reiterating it will maintain "prudent" monetary policy, keep moderate liquidy, and continue supporting economic development. To that end, the PBoC injected another CNY50B via its 7-day reverse repo open market operations. PBoC also maintained that economic indicators are showing some modest improvement. In contrast, the planning body NDRC warned the economy is facing downward pressure, promising to boost construction of key projects in H2.

- South Korea's President Park declared that MERS outbreak is no longer a concern after about a month of no new infections reported. A press report also noted Korean authorities will extend easy mortgage policies by another year, just as Moody's was upbeat on the latest govt measures to contain the country's high levels of household debt. Korean Won came off its lows after hitting its worst levels in 3 years last week, with USD/KRW falling from 1,173 to 1,164.

- USD majors were also increasingly more volatile, largely tracking the swings on the mainland. USD/JPY fell to 123.10 but then rose above 123.50 along with Shanghai Composite rebound. AUD/USD and NZD/USD were also up about 50pips each from their lows, rising to as high as 0.73 and 0.6650 respectively. The euro was under modest pressure after the overnight rally, falling about 30pips below 1.1080.

- In equities, Baidu beat on the top and bottom lines, but shares traded down by over 6% in extended US session. Analysts remarked that markets are skeptical of China internet giant's continued aggressive spending plans.

***Equities***
US equities / ADRs:
- RCII: Reports Q2 $0.50 v $0.48e, R$815M v $811Me; +3.1% afterhours
- CR: Reports Q2 $1.06 v $1.05e, R$711M v $703Me; -1.7% afterhours
- BIDU: Reports Q2 $1.81 v $1.80e, R$2.67B v $2.58Be; -6.3% afterhours
- AMKR: Reports Q2 $0.08 (adj) v $0.10e, R$736.7M v $750Me; -12.6% afterhours

Notable movers by sector:
- Consumer discretionary: China Eastern Airlines 600115.CN -1.5% (H share sales to Delta); ANA Holdings 9202.JP +0.4% (Q1 result speculation)
- Financials: Beijing Capital Land 2868.HK -8.6% (H1 guidance); Huatai Securities 6886.HK -2.0% (H1 result); Citychamp Dartong Co 600067.CN -3.9% (H1 result); Hulic Co 3003.JP -0.4% (H1 result)
- Industrials: Great Wall Motor 2333.HK +4.2% (H1 result, non-public issuance); Korea Aerospace Industries 047810.KR +1.4% (Q2 result)
- Technology: Leshi Internet Info & Tech Co Beijing 300104.CN -3.0% (denies CSRC probe); Hithink Flush Information Network Co Ltd 300033.CN -3.4% (CSRC probe); Canon Inc 7751.JP +0.2% (H1 result); Samsung Electro-Mechanics 009150.KR +5.1% (Q2 result);
Tokyo Electron Device 2760.JP +3.1% ( Q1 result)
- Materials: Western Mining Co 601168.CN -0.7% (H1 result); RUSAL PLC 486.HK -1.1% (Q2 result); Alacer Gold Corp AQG.AU -3.7% (Q1 result); Nitto Denko Corp 6988.JP -5.0% (Q1 result speculation)
- Utilities: CT Environmental Group 1363.HK -0.4% (H1 guidance)
- Healthcare: Guangxi Wuzhou Zhongheng Group 600252.CN +10.0% (H1 result)
- Energy: Senex Energy SXY.AU +2.0% (Q4 result)

>>> US CLose Dow-0.73% S&P-0.61% Nasdaq-0.96% Russell-0.93%

Closing Market Summary: S&P 500 Registers Fifth Consecutive Decline

The stock market began the trading week on a cautious note with the S&P 500 (-0.6%) settling just above its 200-day moving average (2,064) while the Nasdaq Composite (-1.0%) underperformed.

Equity indices spent the entire day in negative territory after the overnight session was highlighted by an 8.5% plunge in China's Shanghai Composite, which endured its largest one-day decline in more than eight years. The index widened its slide from June highs to 28.0%, falling to lows during the final hour of action after the International Monetary Fund voiced concerns about the degree of recent government intervention in the market.

In all likelihood, government involvement in the Chinese market will be in focus over the next few weeks, especially if the measures currently being employed fail to halt the ongoing slide. To that point, today's rout was followed by reports that China's government will step up its buying measures, but that report was refuted shortly thereafter.

The overseas weakness weighed on investor sentiment in Europe and the U.S. while German Bunds (10-yr yield -6 bps to 0.65%) and U.S. Treasuries (10-yr yield -4 bps to 2.23%) advanced.

Nine sectors finished the day in negative territory with all six cyclical groups ending in the red. Furthermore, five of six growth-sensitive groups settled behind the broader market while the industrial sector (-0.4%) ended just ahead. Similar to the sector, high-beta transport stocks fared better than the broader market with the Dow Jones Transportation Average shedding 0.2%.

Elsewhere among cyclical groups, the energy sector (-1.4%) settled at the bottom of the leaderboard while crude oil fell to early April levels, ending lower by 1.6% at $47.39/bbl. The energy component retreated despite today's greenback weakness that sent the Dollar Index (96.53, -0.71) lower by 0.7%. On the upside, the utilities (+1.3%) sector posted a solid gain after showing relative strength throughout the day while consumer staples (-0.1%), health care (-0.1%), and telecom services (-0.1%) also outperformed, but could not make it out of the red.

Notably, the health care sector was boosted by a 16.4% surge in Teva Pharmaceutical (TEVA 72.00, +10.15) after the company beat earnings expectations and announced the acquisition of Allergan's (AGN 326.98, +18.77) generics business for $40.50 billion. As for biotechnology, the high-beta group struggled with iShares Nasdaq Biotechnology ETF (IBB 373.58, -4.00) falling 1.1%.

Today's participation was ahead of recent averages with more than 900 million shares changing hands at the NYSE floor.

Economic data was limited to Durable Orders, which increased 3.4% in June after declining an upwardly revised 2.1% (from -2.2%) in May while the consensus expected an increase of 3.0%.

A large portion of the increase resulted from a significant surge in aircraft orders as Boeing (BA 141.03, -3.03) reported 161 aircraft orders in June, up from just 11 in May. That gain helped push defense and nondefense aircraft orders up 52.3%. Excluding transportation, durable goods orders increased 0.8% in June after declining a negatively revised 0.1% (from 0.0%) in May while the consensus expected an increase of 0.5%.  

Tomorrow, the Case-Shiller 20-city Index for May will be released at 8:30 ET (consensus 5.6%) while July Consumer Confidence will be reported at 10:00 ET (consensus 100.0).
  • Nasdaq Composite +6.4% YTD 
  • Russell 2000 +0.9% YTD 
  • S&P 500 +0.4% YTD 
  • Dow Jones Industrial Average -2.2% YTD

(BN) The $100 Billion Deal Is Still Out There for Pharma: Real M&A

The $100 Billion Deal Is Still Out There for Pharma: Real M&A
2015-07-27 16:54:13.16 GMT


(For a Real M&A column news alert: SALT REALMNA <GO>.)

By Tara Lachapelle
(Bloomberg) -- Why stop at $221 billion? Drug companies are
entering another round of dealmaking, after plowing past the
global record.
Teva Pharmaceutical Industries Ltd.’s $40.5 billion
agreement Monday to purchase Allergan Plc’s generic-medicines
business puts the mechanism in place to trigger more takeovers.
For starters, the remaining Allergan company -- with its
prized branded drugs, including the lucrative Botox franchise --
may be a good target for Pfizer Inc. Buying Dublin-domiciled
Allergan, currently valued at about $129 billion, may also be a
way for Pfizer to lower its tax bill, a move it’s been dreaming
of but hasn’t yet been able to pull off.
Alternatively, Allergan itself could go “elephant
hunting,” says Ronny Gal, an analyst for Sanford C. Bernstein &
Co. In that case, Amgen Inc. and AbbVie Inc. are the most likely
candidates, each valued at more than $120 billion. Both stocks
surged Monday.
Teva’s decision to drop its pursuit of Mylan NV in favor of
the Allergan transaction also increases the likelihood that
Mylan will get to consummate its purchase of Perrigo Co. While
Perrigo’s board and management team are still resisting a sale,
the stock is trading as if a deal will probably happen.
The spread between Perrigo’s share price and Mylan’s cash-
and-stock bid reached its narrowest on Monday. Perrigo
shareholders will vote on that $35 billion transaction in the
coming weeks.
Even Teva is on the lookout for more deals. Erez Vigodman,
the Israeli drugmaker’s chief executive officer, said in an
interview Monday that Teva has the ability to keep making
purchases for specialty pharmaceuticals this year and next.
“You cannot sit still,” he said, referring to the merger
wave that has swept through the pharma industry.

For Related News and Information:
Teva to Buy Allergan’s Generic-Drug Unit for $40.5 Billion
Allergan May Lower Debt, Continue Buying Spree With Teva Deal
All Eyes on Pfizer as Shareholders Await the Mega-Deal: Real M&A
Teva CEO Sees More Deals Coming After $40.5B Allergan Purchase
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>

To contact the reporter on this story:
Tara Lachapelle in New York at +1-212-617-8911 or
tlachapelle@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Elizabeth Wollman

WSJ :BP Looks to the Future After Settling Deepwater Horizon Claims

BP Looks to the Future After Settling Deepwater Horizon Claims
Investors say they want to know how the company plans to move forward


LONDON—As BP PLC prepares to report on Tuesday its first financial results since settling all federal and state claims over the 2010 Gulf of Mexico spill, investors say they want to know how the company plans to move forward from an event that defined its corporate strategy for five years.

“We’re entering into a period where the company needs to decide what it’s going to be,” said Paul Mumford, an investment manager at Cavendish Asset Management Ltd. “When the results come out, I would hope the company would give a clear outline of where it expects to move in the future.”

But don’t expect an abrupt about face, analysts said.

Once the world’s biggest independent oil producer, BP has slid down the rankings of oil giants in the wake of the Deepwater Horizon blowout, which claimed 11 lives and spewed millions of barrels of oil into the Gulf of Mexico. Over the past five years, it has sold off more than $40 billion in assets to help pay for legal and cleanup costs and carefully crafted its business around a smaller set of high-value assets and a regime of cost cuts.

Given the steep drop in oil prices over the past 12 months, that focus on A-grade projects and improving returns is likely to remain, analysts said.

The company has already announced plans to trim costs and reduce capital spending by around 20% and it is in the midst of a two-year, $10 billion divestment plan. As prices fell over the past year, BP has taken one of the most austere approaches among the big oil companies. According to Wood Mackenzie, it has delayed approval on six projects so far this year, three times the number of projects delayed by Exxon and Shell.

Chief Executive Bob Dudley has been vocal in expressing his cautious take on the downturn, warning that he expects oil prices to remain “lower for longer.”

“I wouldn’t get ahead that they’re going to roll the dice big. I don’t think that’s Dudley’s style,” said Citigroup oil-and-gas analyst Alastair Syme.

Still this month’s $18.7 billion settlement gives the company more breathing room and allows it to focus on the future. The agreement settled BP’s largest legal exposures, including penalties for environmental damage under the Clean Water Act and claims from Louisiana, Mississippi, Alabama, Texas and Florida.

Though hefty, BP’s payments will be spread out over 18 years leaving room to maneuver with the balance sheet.

“I think they really have a chance now to rise from the ashes,” said BP investor Richard Hulf, manager of the Global Energy Fund at Artemis Fund Managers.

Now could be the ideal time to stage a comeback, some investors said. The oil-price slide could open up interesting acquisition opportunities, though analysts say BP’s ambitions are likely to be far more modest than the $70 billion acquisition of BG Group by Anglo-Dutch rival Royal Dutch Shell PLC. Still, assets in the U.S. or Africa could prove attractive if the price is right.

“They’ve got a chance to completely reset the strategy,” said Jonathan Barber, a portfolio manager at Columbia Threadneedle Investments, which has limited its investment in BP because of the cloud cast by the Gulf of Mexico disaster.

Indeed, acquisitions could prove a necessity. BP’s production has shriveled since 2010 and last year it failed to find enough oil to replace what it pumped. Its elite set of assets—though carefully pruned and curated—isn’t risk free either. A $7 billion investment in Indian gas, made right after the Gulf of Mexico disaster, has largely fallen flat. Last year, it restructured its onshore business in the U.S., after struggling to profit from the shale boom, and it remains exposed to significant political risk in Russia through its stake in state-owned oil company OAO Rosneft.

‘I think they really have a chance now to rise from the ashes.’
—Richard Hulf, Artemis Fund Managers.
Moreover, the five years of belt-tightening that BP endured in the wake of the Macondo blowout has left it better placed than many of its peers to weather the current downturn in oil prices.

BP’s balance sheet remains strong. At the end of the first quarter, its net debt amounted to $25.1 billion, slightly lower than a year earlier. Its ratio of net debt to equity, or gearing, remains below pre-2010 levels. The ratings agency Standard & Poor’s revised its outlook for the company on Thursday from negative to stable, praising its cost-reduction efforts and control on spending.

It is a symbol of the effort BP has deployed to regain shareholder confidence, despite a 40% drop in its stock-price since the 2010 blowout. Though it suspended its dividend in the wake of the disaster, it has raised it pretty consistently ever since reinstating it at the beginning of 2011.

FT : French state faces €5bn bill to rescue struggling Areva


The French government could be required pay as much as €5bn to rescue the struggling state-controlled nuclear group Areva as part of a deal that is set to reshape the country’s energy sector.
Areva and EDF are in the midst of tense, last-minute discussions ahead of key board meetings on Wednesday, where the two groups — both more than 85 per cent owned by the state — need to find a wide-ranging agreement.

The negotiations, which concern the price EDF will pay for Areva’s reactor businesses and fuel treatment contracts, will shape how much France’s cash-strapped state has to put in to recapitalise Areva.
People close to the talks say that the government could be forced to contribute as much as €4bn-€5bn to a capital raising expected in September, far more than the €2bn-€3bn that ministers had hoped for just a few months ago.
Relations between EDF and Areva are strained. Philippe Varin, Areva’s chairman, last week wrote a letter to the government warning that the whole deal was in danger of falling apart.
The two companies, which both report half-year results on Thursday, need to agree on the price for Areva’s reactor unit, called Areva NP.
According to people close to the talks, the expectation is that the unit will be valued at about €2.7bn, more than the €2bn expected last month, but EDF, which operates France’s 58 nuclear plants, will take only about 75 per cent of the equity in the company.
This would leave Areva with a 25 per cent stake of Areva NP. But then it would receive roughly €700m less cash, and the shortfall would probably need to be made up by the state in the capital raising, according to those same people.
Even more tense negotiations are under way over a number of commercial contracts between EDF and Areva, chiefly over the price that EDF will pay for fuel treatment and recycling until 2023.
People close to Areva say that the price being offered by EDF is too low. The French state also has an interest in EDF paying a higher price for this major contract, as more revenue could lead to lower capital needs for Areva.
The third part of the talks is over whether the French state will indemnify both Areva and EDF against any future losses on a construction project in Finland, which has already cost Areva €3.9bn in impairment charges.
Areva has over the past five years suffered from delays to key projects as well as a slump in global demand for new reactors following the 2011 Fukushima disaster.
The company reported a €4.8bn loss last year, prompting the government to step in to try to broker a solution with EDF to save a key player in one of France’s most important strategic industries.