>>> US Close Dow+0,33% S&P+0,16% Nasdaq-0,22% Russell-0,02%


Closing Market Summary: Stocks End Mixed as Q1 Earnings Trickle In

The major averages ended Tuesday on a mixed note after spending the day near their flat lines. The S&P 500 added 0.2% while the Nasdaq settled lower by 0.2%.

Equity indices slipped during the opening hour after the March Retail Sales report (+0.9%; Briefing.com consensus +1.0%) came in below expectations. In addition to pressuring equities, the report weighed on the greenback, knocking the Dollar Index (98.81, -0.68) to a session low. The index climbed off its worst level, but still ended the day lower by 0.7%.

As for equities, the S&P 500 found support just above its 50-day moving average (2,081) and made a swift return into the green. The index received significant support from the energy sector (+1.8%), which ended well ahead of other groups. Crude oil contributed to the considerable strength, climbing 2.7% to $53.31/bbl.

Similar to energy, six other sectors finished in the green, but only two groups added more than 0.4%. Furthermore, the two outperformers—materials (+0.4%) and utilities (+0.6%)—account for less than 7.0% of the market.

Meanwhile, the top-weighted technology sector (-0.3%) spent the day in negative territory, largely due to weakness among chipmakers. The PHLX Semiconductor Index lost 1.0% ahead of earnings results from Intel (INTC 31.49, -0.24) and Linear Technology (LLTC 45.42, -0.59).

Elsewhere among cyclical groups, the financial sector (unch) spent the day near the broader market after two major components reported earnings. JPMorgan Chase (JPM 63.04, +0.97) spiked 1.6% after beating bottom-line estimates on light revenue while Wells Fargo (WFC 54.19, -0.40) lost 0.7% despite its better than expected earnings.

Similar to financials, the health care sector (+0.2%) settled near the broader market after Johnson & Johnson (JNJ 100.52, -0.03) reported a two-cent beat, but lowered its guidance, citing currency headwinds.

Also of note, industrials (-0.1%) ended little changed even though transport stocks displayed intraday weakness after Norfolk Southern (NSC 100.53, -4.34) lowered its guidance. The stock fell 4.1% while the Dow Jones Transportation Average narrowed its decline to 0.1% by the close.

Switching gears, Treasuries spiked following today's Retail Sales report, but surrendered the bulk of their gains during the session. The 10-yr note ended modestly higher with its yield down three basis points at 1.90%.

Today's trading volume was comparable to that observed in recent days with more than 675 million shares changing hands at the NYSE floor.

Economic data included retail sales, PPI, and business inventories:
  • Retail sales increased 0.9% in March after declining an upwardly revised 0.5% (from -0.6%) in February while the consensus expected an increase of 1.0% 
    • A significant portion of the increase resulted from a rebound in motor vehicle demand as sales at motor vehicle and parts dealers increased 2.7% in March after declining 2.1% in February 
    • Excluding motor vehicle sales, retail sales increased 0.4% in March after an upward revision left sales flat (from -0.1%) in February while the consensus expected an increase of 0.7% 
  • Producer prices increased 0.2% in March after declining 0.5% in February, representing the first increase since October 2014 while the consensus expected an increase of 0.2% 
    • Energy prices increased 1.5% in March after being flat in February. That was the first increase in energy prices since June 2014. Gasoline prices increased 7.2% in March and were the main contributor to the overall increase in energy costs. 
    • Food prices declined 0.8% in March after declining 1.6% in February. These prices haven't increased on a month-over-month basis since November 2014. 
    • Excluding food and energy, core PPI increased 0.2% in March after declining 0.5% in February while the consensus expected an increase of 0.1% 
  • Business inventories increased 0.3% in February after being flat in January, which is what the consensus expected 
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the Empire Manufacturing report for April will cross the wires at 8:30 ET (consensus 7.3). The Industrial Production report for March will be released at 9:15 (consensus -0.3%) while the NAHB Housing Market Index for April will be reported at 10:00 ET (consensus 55). Also of note, the Federal Reserve will release its April Beige Book at 14:00 ET.
  • Nasdaq Composite +5.1% YTD 
  • Russell 2000 +5.0% YTD 
  • S&P 500 +1.8% YTD 
  • Dow Jones Industrial Average +1.2% YTD

PartnerRe Comments on EXOR’s Proposal

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BFW 04/14 18:46 *PARTNERRE BOARD WILL REVIEW EXOR’S $130/SHR OFFER BN 04/14 18:45 *PARTNERRE HAS RECEIVED OFFER PROPOSAL FOR $130/SHR FROM EXOR BN 04/14 18:45 *PARTNERRE BOARD WILL REVIEW EXOR PROPOSAL BN 04/14 18:45 *PARTNERRE BOARD TO REVIEW BN 04/14 18:45 *PARTNERRE HAS RECEIVED LIC PROPOSAL FROM EXOR BN 04/14 18:45 *PARTNERRE HAS RECEIVED AN COMMENTS ON EXOR’S PROPOSAL BN 04/14 18:45 *PARTNERRE COMMENTS ON EXOR’S PROPOSAL

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PartnerRe Comments on EXOR’s Proposal 2015-04-14 18:45:00.136 GMT

PartnerRe Comments on EXOR’s Proposal

Business Wire

PEMBROKE, Bermuda -- April 14, 2015

PartnerRe Ltd. (NYSE:PRE) today announced that it has received an unsolicited proposal from EXOR (EXO IM), a European investment company controlled by the Agnelli family, to acquire 100% of the common shares of the company for $130.00 per share in cash, valuing PartnerRe at $6.4 billion.

As was previously announced on January 25, 2015, PartnerRe has entered into a definitive amalgamation agreement with AXIS Capital to combine and create one of the world’s leading specialty insurance and reinsurance companies.

Consistent with its fiduciary duties, the PartnerRe Board of Directors will review the EXOR proposal to determine the course of action that it believes is in the best interests of PartnerRe and its shareholders. The Board will announce its position regarding the EXOR proposal following its review, which will be completed in due course.

Credit Suisse is acting as financial advisor and Davis Polk & Wardwell LLP and Appleby (Bermuda) Limited are acting as legal counsel to PartnerRe.

About PartnerRe

PartnerRe Ltd. is a leading global reinsurer, providing multi-line reinsurance to insurance companies. The Company, through its wholly owned subsidiaries, also offers capital markets products that include weather and credit protection to financial, industrial and service companies. Risks reinsured include property, casualty, motor, agriculture, aviation/space, catastrophe, credit/surety, engineering, energy, marine, specialty property, specialty casualty, multi-line and other lines in its Non-life operations, mortality, longevity and accident and health in its Life and Health operations, and alternative risk products. For the year ended December 31, 2014, total revenues were $6.5 billion. At December 31, 2014, total assets were $22.3 billion, total capital was $7.9 billion and total shareholders’ equity attributable to PartnerRe was $7.0 billion.

PartnerRe on the Internet: www.partnerre.com

Important Information For Investors And Shareholders

This communication does not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities or a solicitation of any vote or approval. This communication relates to a proposed business combination between PartnerRe Ltd. (“PartnerRe”) and AXIS Capital Holdings Limited (“AXIS”). In connection with this proposed business combination, PartnerRe and/or AXIS may file one or more proxy statements, registration statements, proxy statement/prospectus or other documents with the Securities and Exchange Commission (the “SEC”). This communication is not a substitute for any proxy statement, registration statement, proxy statement/prospectus or other document PartnerRe and/or AXIS may file with the SEC in connection with the proposed transaction. INVESTORS AND SECURITY HOLDERS OF PARTNERRE AND AXIS ARE URGED TO READ THE PROXY STATEMENT(S), REGISTRATION STATEMENT(S), PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Any definitive proxy statement(s) (if and when available) will be mailed to stockholders of PartnerRe and/or AXIS, as applicable. Investors and security holders will be able to obtain free copies of these documents (if and when available) and other documents filed with the SEC by PartnerRe and/or AXIS through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by PartnerRe will be available free of charge on PartnerRe’s internet website at http://www.partnerre.com or by contacting PartnerRe’s Investor Relations Director by email at robin.sidders@partnerre.com or by phone at 1-441-294-5216. Copies of the documents filed with the SEC by AXIS will be available free of charge on AXIS’ internet website at http://www.axiscapital.com or by contacting AXIS’ Investor Relations Contact by email at linda.ventresca@axiscapital.com or by phone at 1-441-405-2727.

Participants in Solicitation

PartnerRe, AXIS, their respective directors and certain of their respective executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of PartnerRe is set forth in its Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 26, 2015, its proxy statement for its 2014 annual meeting of stockholders, which was filed with the SEC on April 1, 2014, its Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 which was filed with the SEC on October 31, 2014 and its Current Reports on Form 8-K, which were filed with the SEC on January 29, 2015, May 16, 2014 and March 27, 2014. Information about the directors and executive officers of AXIS is set forth in its Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the SEC on February 23, 2015, its proxy statement for its 2014 annual meeting of stockholders, which was filed with the SEC on March 28, 2014, its Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 which was filed with the SEC on October 31, 2014 and its Current Report on Form 8-K, which was filed with the SEC on March 11, 2015, January 29, 2015, August 7, 2014, June 26, 2014, March 27, 2014 and February 26, 2014.

These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.

Forward Looking Statements

Certain statements in this communication regarding the proposed transaction between PartnerRe and AXIS are “forward-looking” statements. The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “probable,” “project,” “forecasts,” “predict,” “outlook,” “aim,” “will,” “could,” “should,” “would,” “potential,” “may,” “might,” “anticipate,” “likely” “plan,” “positioned,” “strategy,” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. These forward-looking statements, which are subject to risks, uncertainties and assumptions about PartnerRe and AXIS, may include projections of their respective future financial performance, their respective anticipated growth strategies and anticipated trends in their respective businesses. These statements are only predictions based on current expectations and projections about future events. There are important factors that could cause actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the risk factors set forth in PartnerRe’s and AXIS’ most recent reports on Form 10-K, Form 10-Q and other documents on file with the SEC and the factors given below:

• failure to obtain the approval of shareholders of PartnerRe or AXIS in connection with the proposed transaction;

• the failure to consummate or delay in consummating the proposed transaction for other reasons;

• the timing to consummate the proposed transaction;

• the risk that a condition to closing of the proposed transaction may not be satisfied;

• the risk that a regulatory approval that may be required for the proposed transaction is delayed, is not obtained, or is obtained subject to conditions that are not anticipated;

• AXIS’ or PartnerRe’s ability to achieve the synergies and value creation contemplated by the proposed transaction;

• The ability of either PartnerRe or AXIS to effectively integrate their businesses; and

• the diversion of management time on transaction-related issues.

PartnerRe’s forward-looking statements are based on assumptions that PartnerRe believes to be reasonable but that may not prove to be accurate. AXIS’ forward-looking statements are based on assumptions that AXIS believes to be reasonable but that may not prove to be accurate. Neither PartnerRe nor AXIS can guarantee future results, level of activity, performance or achievements. Moreover, neither PartnerRe nor AXIS assumes responsibility for the accuracy and completeness of any of these forward-looking statements. PartnerRe and AXIS assume no obligation to update or revise any forward-looking statements as a result of new information, future events or otherwise, except as may be required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.

Contact:

PartnerRe Ltd.: Investor: Robin Sidders, 441-294-5216 robin.sidders@partnerre.com or Media: Celia Powell, 441-294-5210 celia.powell@partnerre.com or Sard Verbinnen & Co Drew Brown/Robin Weinberg 212-687-8080

-0- Apr/14/2015 18:45 GMT

(BN) Ericsson, Juniper are Next as Nokia Wakes Up Industry: Real M&A


Ericsson, Juniper are Next as Nokia Wakes Up Industry: Real M&A
2015-04-14 17:40:59.775 GMT


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

By Tara Lachapelle
(Bloomberg) -- Deal watchers should turn their attention to
the communications-equipment industry because Nokia Oyj is about
to set off a whole new round of mergers.
The Finnish company confirmed Tuesday that it’s in talks to
buy France’s Alcatel-Lucent SA. Not only would the purchase give
Nokia the lead in selling wireless equipment to customers such
as AT&T Inc. and Verizon Communications Inc., it would also help
Nokia expand into wireline assets such as routers.
The deal -- which would top $13 billion -- could herald a
new era in the industry in which competitors such as Sweden’s
Ericsson AB and Juniper Networks Inc. will need to broaden their
swath of products via acquisitions so that they can provide all
of the equipment that telecommunications companies need. It
would mark a switch in an industry that’s been dormant on the
deal front in recent years.
“We’re entering a period in the industry where a lot of
deals could happen,” Mike Genovese, an analyst at MKM Partners
in Stamford, Connecticut, said in a phone interview. “Nokia and
Alcatel getting together will put pressure on Ericsson to get
into wireline and optical, too. It tends to be a copycat
industry.”

Deal Partners

Genovese identified some potential buyers and targets.
Juniper, with a market value of $9.7 billion, could be either.
Ericsson, which will lose its lead in wireless equipment to a
combined Nokia and Alcatel-Lucent, could respond by buying
Juniper to add IP routers. Or Ericsson could opt for Ciena
Corp., the $2.3 billion maker of optical-transport systems with
which it already has a partnership. Infinera Corp., another
optical-equipment maker valued at $2.65 billion, could draw the
interest of Cisco Systems Inc. or Juniper, he said.
Carriers such as AT&T and Verizon tend to stagger their
capital expenditures on wireless and wireline networks, devoting
six months to one before turning to the other.
“It’s lumpy,” Genovese said. “If you’re only on the
wireless side or the wireline side, your business goes away for
two quarters. So it makes sense to be end-to-end to be able to
offset that and address the entire capex budget of the
carriers.”
Representatives for Ericsson, Cisco and Infinera declined
to comment. Representatives for Juniper and Ciena didn’t
immediately respond to phone calls or e-mails seeking comment.
Shares of Ericsson were unchanged on Tuesday at 114.30
kronor in Stockholm. Juniper surged 1.5 percent to $23.95 at
1:06 p.m. in New York, while Ciena jumped 7.7 percent and
Infinera climbed 3.1 percent.

More Products

A takeover of Juniper, Ciena or Infinera would give
Ericsson a chance to sell more products to some of its current
customers, such as AT&T, Verizon, Deutsche Telekom AG, Vodafone
Group Plc and Orange SA, according to supply-chain data compiled
by Bloomberg.
All-cash deals for Juniper or Ciena at a hypothetical 30
percent takeover premium would immediately boost Ericsson’s
earnings, data compiled by Bloomberg show. Infinera may slightly
dilute earnings this year and next. That’s before accounting for
any overlapping costs that Ericsson could cut. The company had
about 75 billion kronor ($8.6 billion) in cash and cash
equivalents as of December, the data show.

For Related News and Information:
Nokia in Talks to Acquire Network-Equipment Rival Alcatel
New Nokia Equipped to Make a Deal With Alcatel-Lucent: Real M&A
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>
Merger calculator: MRGC <GO>
Supply-chain analysis: SPLC <GO>

--With assistance from Adam Ewing in Stockholm.

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

>>> Intel (INTC) Q1 Earnings Preview

Intel (INTC) Q1 Earnings Preview
Key Points:
  • INTC is scheduled to release Q1 results today after the market closes with a conference call to follow at 5:00 p.m. ET
  • The current Capital IQ Consensus Estimates call for Q1 EPS of $0.41, which would equate to about 7.9% year-over-year growth. Revenues are expected to come in at around $12.82 billion, which would equate to about a 1.2% year-over-year increase over last year's $12.76 billion in revenue
  • In terms of guidance:
    • On Jan. 15, co issued initial guidance for Q1, expecting Q1 revs in the range of $13.2-14.2 billion with gross margins of 60%, +/- a few %age points
    • Also on Jan. 15, co reaffirmed FY15 guidance, sees mid-single digit revenue growth with gross margins of 62%, +/- a couple % points
    • On March 12, co lowered Q1 revenues guidance to $12.5-13.1 billion reflecting weaker than expected demand for business desktop PCs and lower than expected inventory levels across the PC supply chain
  • On March 5, Northland Capital Markets came out suggesting ALTR would be a good strategic fit for INTC
    • This M&A speculation came to a head on March 27 when both ALTR and INTC spike hard on elevated volume surrounding rumors that a deal which INTC would buy ALTR circulated
    • It was rumored that ALTR rejected the INTC offer which stood in the "low-$50s"
    • Talks haven't closed yet, and there is no sign that a deal won't occur, but as of today the talks have stalled
Top Points from Last Quarter:
  • INTC reported Q4 (Dec) earnings of $0.74 per share, $0.08 better than the Capital IQ Consensus of $0.66; revenues rose 6.4% year/year to $14.72 bln vs the $14.71 bln consensus.
    • PC Client Group revenue of $8.9 bln, down 3% sequentially and up 3% YoY
    • Data Center Group revenue of $4.1 bln, up 11% sequentially and up 25% YoY
    • IoT Group revenue of $591 mln, up 12% sequentially and up 10% YoY
    • Software and services operating segments revenue of $557 million, flat sequentially and down 6% YoY
Analyst Commentary:
  • On April 14, Topeka Capital Mkts noted preannouncements from INTC and weak technology commentary reflect sluggish PC market demand, and they believe the last few weeks have brought a bottoming of order patterns. Firm believes certain pockets of demand remain relatively healthy including data center.
  • On April 13, MKM Partners noted catalysts likely come from better PC fundamentals and dramatic moves to grow new business. Although the ALTR deal may be off the table, INTC can pay premiums for fabless semiconductor companies and generate significant gross margin expansion, in firm's view. Firm assumes many fabless companies have 40% COGS (60% product GMs) and INTC's leading front-end/back-end manufacturing can be done at 40% GMs (note TSMC (TSM, NR, $23.50) in high 40s).
  • On March 5, Northland Capital Markets was out suggesting ALTR "would fit" into INTC's data center strategy. The firm noted ALTR would make a good strategic fit for INTC given recent (at the time) semiconductor M&A activity.

RTR - France says Alcatel can reconquer lost markets with Nokia tie-up

France says Alcatel can reconquer lost markets with Nokia tie-up ALUA.PA NOK1V.HE - RTRS

(Reuters) - French Economy Minister Emmanuel Macron gave his backing to Nokia's NOK1V.HE plan to buy Alcatel-Lucent of France on Tuesday, saying it offered a chance to reconquer lost markets and create a European leader in telecoms equipment.
Speaking after a meeting between the heads of the two companies and President Francois Hollande, Macron also pledged there would be no job cuts among the 6,000 Alcatel-Lucent employees in France, and said the combined group planned to base research and development operations in France.
"It's a good move for Alcatel-Lucent because it is a move for the future, because we are building, with this tie-up, a new conquest for Alcatel-Lucent, which was a company in great difficulty two years ago."
Nokia announced earlier on Tuesday it was in talks to buy Alcatel-Lucent.

FT : Merger talks between advert sites 58.com and Ganji.com


New York-listed 58.com and a second Chinese online marketplace have agreed to merge, as consolidation accelerates in the local technology sector.
A memorandum of understanding between 58.com and Ganji.com, which both function much like US site Craigslist, was signed in Beijing on March 14, people familiar with the matter said.
The two groups are expected to announce as soon as Wednesday that they are planning to combine to create what will become one of the largest specialised online classified companies in China’s booming mobile internet space. The combined group could be valued at as much as $10bn, one person involved in the transaction said.

Because of antitrust concerns the transaction will probably involve two stages. Currently 58.com is about twice as big as Ganji.com, but both companies provide a range of online advertising listings including job adverts, housing and second-hand goods.
Last year, internet giant Tencent bought a 20 per cent stake in 58.com, and the online marketplace announced last month that it had acquired Shanghai-based property-listing platform Anjuke Inc for about $267m in cash and shares.
Haoyong Yang, the founder of Ganji.com, will become one of the co-chief executives along with Jinbo Yao, founder of 58.com, the person said.
By joining forces, the two hope to reduce marketing costs substantially. Each spend about $250m a year on such efforts, one investor said. US-based private equity firms have stakes in both groups, with Warburg Pincus an investor in 58.com while Carlyle, Sequoia and Tiger Global, among others, have stakes in Ganji.
The latest merger comes at a time when investors are very bullish about Chinese internet shares but are also concerned that many of the sector’s companies are burning too much cash as they subsidise their operations to attract customers.
“People are fighting over the market,” said one leading tech investor. “There is so much money thrown at these companies that they are virtually paying people to use their services. The money is not being used efficiently.”
The merger plans come at a time when some western investors in mainland Chinese internet firms are starting to pressure the management to place more focus on shareholder value.
“Many companies make decisions on the basis of ego of their founders, not economics,” this investor added. “Even when they only have small stakes in their companies.”
In some cases, that has led to merger talks.
Last summer, two of China’s leading online taxi services, Kuadi Dache, which is part owned by Alibaba, and Didi Dache, part owned by Alibaba’s bitter rival Tencent, ended their price war and agreed to combine.
“It was like Romeo and Juliet getting married with the blessing of both sets of parents,” this person added.
The planned listing of Alibaba’s financial operations in China this year is expected to give rise to another bout of frenzied activity in the space.

>>> UBI says no talks with Monte Paschi, no rush on M&A - RTRS

UBI says no talks with Monte Paschi, no rush on M&A - RTRS

(Reuters) - The chief executive of UBI Banca UBI.MI, Italy's fifth biggest lender, said on Tuesday there were no contacts with Monte dei Paschi di Siena BMPS.MI over a possible tie-up and signalled he was in no rush to take part in sector consolidation.
Bankers say UBI is the most likely domestic candidate to take over troubled Monte dei Paschi, who has been told by the European Central Bank to find a buyer quickly because of its fragile state.
Victor Massiah said his bank would start thinking about consolidation after a shareholder meeting that will convert the bank into a joint-stock company, something that is expected to happen from September onwards, and in any case within 18 months.