(BFW) IGate May See 30% Premium in Potential Sale, UBS Says

IGate May See 30% Premium in Potential Sale, UBS Says
2015-04-17 12:42:20.564 GMT


By Joshua Fineman
(Bloomberg) -- Assuming 30% premium, and before any
synergies, sees 16%-18% PBT accretion for Atos, Capgemini in
2016/2017, though Capgemini would likely get addtl cash tax
benefits from its E&Y tax shield, UBS analyst Michael Briest
wrote in note.
* Sees Atos as less likely buyer than Capgemini for IGTE
* NOTE: Earlier, Capgemini, Atos in Talks to Buy IGATE,
Business Standard Says
* IGTE up 7.5% premkt


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

To contact the reporter on this story:
Joshua Fineman in New York at +1-212-617-8953 or
jfineman@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Joshua Fineman

>>> US Early premarket gappers

Early premarket gappers
Gapping up: TRXC +58%, CE +15.2%, ROSG +7.1%, IGTE +6.3%, SSH +5.8%, MAT +4.9%, GIG +3.7%, SM +3.7%, SM +3.7%, MNTA +3.6%, CHKE +3.3%, FHN +3.1%, CYT +2.8%, GFI +2%, SLB +2%, BSX +1.8%, ARCO +1.5%, MUX +1%, KALU +0.9%, RAI +0.8%, HAL +0.7%, MFLX +0.7%

Gapping down: ATHX -45%, DSCO -28.3%, PRO -15.4%, AMD -12.2%, STRM -9.3%, NOW -8.6%, MTW -6.9%, WUBA -5.5%, WPCS -5.2%, TC -4.5%, ING -3.6%, LFC -3.6%, ASND -3.5%, DB -2.8%, HON -2.8%, INUV -2.6%, SAN -2.5%, AKBA -2.2%, BBVA -2.2%, AXP -2.2%, WBAI -2.1%, QIWI -1.8%, TSLA -1.8%, SFUN -1.7%, FCX -1.6%, QGEN -1.5%, CCK -1.2%,SBUX -0.5%

>>> China/margin financing/A-shares

Lots of noise, some notes that may help. Crackdown on OTC margin financing/umbrella trusts is significant. Jan 19, 2015 saw a 8% slide on the Shanghai Comp and arguably market a little more extended now than it was then. 6 million new A-share trading accounts have been opened in China over the past month i.e. > the entire population of LA.
WHAT HAPPENED TODAY:
1. China allows mutual funds to lend stocks for short-selling, expands number of stocks available for short-selling. The timing is perhaps a little suspect given all the jawboning they’ve been doing (via local brokerages & state-owned media) to keep the fire lit under the A-share market but allowing a two-way market & making it more sophisticated has always been part of the plan. The pilot programme for margin trading & short-selling in China started in 2010 has grown, albeit in fits & starts and in the face of the usual skepticism about China, ever since
2. CSRC crackdown on OTC margin financing esp umbrella trusts – according to a CSRC spokesman they plan to regulate margin trading in 7 respects, the most important of these (& in my opinion *THE* key reason for the sell-off in China equities) is the prohibition of any kinds of OTC margin financing. Sell-off in H-share futures & ETFs is likely to get in front of a slide in A-shares on Monday
3. Over the past week, there has been more on margin financing. Reuters had story earlier in the week on banks been asked to check levels of margin financing. That didn’t flutter the market too much. A clampdown on umbrella trusts though would be a more direct hit. Here’s why -
BACKGROUND: From UBS in February on why crackdown on umbrella trust matters:
Trust sector AUM grows over Rmb1trn QoQ to Rmb14trn
Rapid growth of trust assets under management (AUM) continues to be driven by collective trust products, the actively-managed portion of AUM that is sold as products
to multiple investors. However, the underlying asset mix is shifting away from loan products to a range of alternative asset products, including hybrid products, equity
funds and margin financing products.
Trust companies have potentially become the largest source of margin finance
A key part of the growth in collective trust products came from strong demand for equity market margin financing under a product type known as umbrella trusts. These
products have provided an estimated Rmb1-1.2trn of margin financing to equity markets. However, there were broad-based increases across all AUM categories.
Securities sector AUM also saw rapid growth of 17% HoH to Rmb8trn
The growth of securities AUM is conversely being driven by passively-managed AUM, with securities AUM only generating an average of 16bp per unit of AUM, a fraction of what trust companies generate on their AUM.

>>> General Electric beats by $0.01, misses on revs; reaffirms FY15 industrial e

General Electric beats by $0.01, misses on revs; reaffirms FY15 industrial earnings (27.28)
Reports Q1 (Mar) earnings of $0.31 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus of $0.30; revenues fell 3.1% year/year to $33.1 bln vs the $34.32 bln consensus.
  • Industrial segment revenue $24.4 billion, -1%, +3% organic; FX impact of ~$(950) million
    • Industrial segment profit +9%, with 5 of 7 segments growing earnings
    • Industrial segment growth market revenue +6%, strength in Middle East, Latin America, Africa, China, India
  • Oil & Gas revenue flat and operating profit +11%, on organic basis.
  • Record backlog of $263 billion +7% vs. 1Q'14 • GE Capital ENI (ex. liquidity) at $303 billion, -19% vs. 1Q'14
Co reaffirms FY15 Industrial operating EPS $1.10-1.20 plus ~$0.15 from retained GE Capital businesses
  • Industrial operating EPS up double digits + Segment organic growth of 2-5% & margin expansion; $10 -30 bln returned to investors.

(BFW) Fitch Raises Nokia’s BB-Rating Outlook to Positive on Alcatel

Fitch Raises Nokia’s BB-Rating Outlook to Positive on Alcatel
2015-04-17 09:44:37.752 GMT


By Kim McLaughlin
(Bloomberg) -- Fitch revises outlook on Nokia’s long-term
Issuer Default Rating to positive from stable after co.’s bid to
acquire Alcatel-Lucent for stock.
* Move reflects view that the acquisition has “strong
industrial logic” and potential to “significantly
improve” co.’s operating and medium- to long-term business
risk profile, while alleviating mounting risks to wireless
networks focus: Fitch


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

To contact the reporter on this story:
Kim McLaughlin in Stockholm at +46-8-610-0702 or
kmclaughlin6@bloomberg.net

WSJ : Bloomberg Terminals Go Down Globally

Bloomberg Terminals Go Down Globally
Traders say Bloomberg terminals went dark more than an hour ago

HONG KONG—Bloomberg’s financial terminals went down globally on Friday, causing disruption to traders who rely on the data machine to analyze and trade securities.

The U.S.-based company run by Michael Bloomberg confirmed the disruption, with traders saying the terminals went dark more than an hour ago.

Bloomberg’s data-and-information terminals are used widely by bond, stock, commodities and foreign-exchange traders globally both to trade and to chat with other market participants logged in to the terminals. The financial news and data provider controls a large portion of financial data.

News Corp’s Dow Jones & Co., publisher of The Wall Street Journal, competes with Bloomberg on financial news.