>>> Alcatel-Lucent Nokia - MS comment

Reports from French newspaper Les Echos and Bloomberg state that Nokia is in advanced discussions with Alcatel to buy its Wireless business. This is not the first time that such a deal has been discussed in the press.
While neither company has confirmed the press reports, such a deal could be positive for Alcatel, as Wireless lacks scale globally despite its strong position in the US. In addition, the unit has lost money in previous years, though management has said it is bringing it to breakeven this year. Such a deal, if it happens, could be transformative for Alcatel as it could make it a € 10bn revenue, 11-12% EBIT margin market share gainer / grower with a strong IP routing / optical / access positioning and less volatility on earnings. Should this occur, it could conceivably lead to a re-rating of the shares toward our €5 bull case price target, in our view. Bloomberg also states that a full merger with Alcatel has been discussed but reported that a wireless asset sale is currently the most likely deal.
We believe the current share price implies a value of around €1bn or 0.2xEV/sales for wireless, and that any value above this would be a positive surprise for investors. The price would be important for the future of Alcatel, its share price and its deleveraging but details around a potential transaction would be key and, in our view, the market would look for clarity on the following:
1. the size of the US pension fund and OPEB transferred to Nokia – please note that Alcatel is in process of reducing the size of the pension fund
2. the number of employees in France that would be part of a potential transaction and the potential approval from the French government
3. consideration of the cash in the China JV Alcatel Shanghai Bell
4. should the small cells be part or not of the deal

(Nomura) Alcatel-Lucent Quick comment on Nokai deal

Bloomberg reports that Nokia is in advanced talks to acquire Alcatel-
Lucent’s wireless assets. Key details from the article include:
* An agreement may be announced as early as this week
* A full takeover of Alcatel by Nokia has been examined but a purchase of
the wireless business remains the most likely scenario
* No agreement has been reached and a deal could still fall apart
* Nokia is seeking to secure French state backing for a sale.
Representatives of the French government are working with advisors to
protect some domestic research jobs

(ZH) Einhorn Slams Bernanke's Blog, Says Fed Policy Is A "Destructive Force That

Einhorn Slams Bernanke's Blog, Says Fed Policy Is A "Destructive Force That Shouldn't Exist Outside Of Fiction"


It's getting serious for the academic hacks who meet every two months in Basel to drink $5000 bottles of wine and regale each other with their stupidity, most of whom have never held a job outside of academia, and for whom the only solution to the second great global depression is simply to buy assets and specifically stocks in a bid to restore confidence, oblivious that everyone now understands that the greater the central bank intervention, the greater the confidence destruction.
So serious, in fact, that the Fed is now on the defensive not only from tinfoil bloggers who said QE would ultimately lead to war, revolution, and global catastrophe, but
In fact, the only people who defend the Fed now are socialists who believe in Magic Money Trees, other career academics, E-trade babies who believe that BTFD and BTFATH is what investing is about, and of course, various sycophants and drama majors posing as financial journalists.
Meanwhile, in an attempt to cover up his criminal actions and exonerate his genocidal stupidity which will result in global conflict, revolution and/or war, the man responsible for the final Fed Bubble, Ben Bernanke, has taken on blogging.
Luckily there are many who have taken him to task, including the man who first compared Fed policy to eating jelly donuts, David Einhorn, and who during last week's Grant's Invesstment Conference, had this to say about the most disturbing thing written recently by Bernanke:

This is what Einhorn had to say:


In a recent blog post, Mr. Bernanke wrote: “the best way to improve the returns attainable by savers was to do what the Fed actually did: keep rates low, so that the economy could recover and more quickly reach the point of producing healthier investment returns.”

This is circular reasoning: He is assuming that which he seeks to prove, namely that ultralow rates actually help the economy. But, that is the open question.
Then again, by now it should be clear to everyone that Bernanke really is a very confused person whose only job was to preserve the illustion of confidnece while destroying the middle class, and making the banks and the 0.01% ultra wealthy (and if itisn't read this).
Which is why it was Einhorn's other observations from the confernce that were note worthy. Here are some select excerpts:
  • I last spoke here three years ago and talked about what I dubbed the Fed’s Jelly Donut monetary policy. I observed that accommodative policy has diminishing returns that had long?since passed the point of being productive and was now actually slowing the recovery. I compared it to eating a 36th Jelly Donut.
  • By keeping rates too low, the Fed sought to create a stock market wealth effect. I suggested that while this would increase income inequality, the wealth effect would not likely translate to enough additional consumption to offset the even bigger drain from lost income to savers.
  • Policy makers and mainstream economists are stuck in GroupThink that easy money always helps the economy, despite basic economic principles that suggest diminishing or negative marginal returns.
  • Swiss Re recently calculated that from 2008?2013, U.S. households lost $470 billion of income due to excessively low interest rates. Because savers perceive interest income as more recurring than volatile stock market gains, and because interest income is spread more broadly than equity gains, it’s fair to assume that a much greater proportion of interest income would be spent.
  • Low interest rates make workers save more, as they can’t anticipate earning safe income on savings. They also make retirees spend less, as they have less current and future income and need to stretch savings over their remaining lives. Both dynamics create less spending and a slower recovery.
  • The question is who benefits from the harm to savers? Of course, it is governments who are able to borrow more cheaply.
  • I remain of the view that higher rates will surprise by improving the economy on Main Street even though it is quite possible they would create some turbulence on Wall Street, as most equities are now highly priced and a select group are in a bubble.
There is more in the presentation whose selected slides we have shown below, but here is the punchline:


We have passed the point where Jelly Donut policy is merely slowing the recovery. Distortions are now adding risk to the banking and insurance markets and leading to poor incentives for the largest players in the financial system.

Monetary policy and regulations have combined like a failed chemistry experiment to create a potentially destructive force that should not exist outside of fiction.

Einhorn's conclusion:


I think this adds to the ultimate attraction of holding gold instead of green.

(BN) *NOKIA, ALCATEL-LUCENT CONFIRM THEY ARE IN ADVANCED TALKS


BN 04/14 06:47 *NOKIA CONFIRM TALKS W/ RESPECT TO POTENTIAL FULL COMBINATION
BN 04/14 06:47 *NOKIA SAYS THERE CAN BE NO CERTAINTY OF AGREEMENT, TRANSACTION
BN 04/14 06:47 *NOKIA SAYS FURTHER ANNOUNCEMENT WILL BE MADE WHEN APPROPRIATE
BN 04/14 06:46 *NOKIA, ALCATEL-LUCENT CONFIRM THEY ARE IN ADVANCED TALKS
BN 04/14 06:46 *NOKIA FURTHER ANNOUNCEMENT WILL BE MADE WHEN APPROPRIATE
BN 04/14 06:46 *NOKIA AND ALCATEL-LUCENT ARE IN ADVANCED TALKS
BN 04/14 06:46 *NOKIA: STATEMENT RE NOKIA/ALCATEL-LUCENT MEDIA SPECULATION
BN 04/14 06:46 *STATEMENT ON NOKIA/ALCATEL-LUCENT MEDIA SPECULATION
BN 04/14 06:46 *NOKIA: STATEMENT ON NOKIA/ALCATEL-LUCENT MEDIA SPECULATION

NOKIA: Statement regarding Nokia/Alcatel-Lucent media speculation
2015-04-14 06:46:45.407 GMT

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR
FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

Nokia Corporation
Stock Exchange Release
April 14, 2015 at 09:45 (CET +1)

class="hugin">Statement regarding Nokia/Alcatel-Lucent media speculation

In relation to recent media speculation Nokia and Alcatel-Lucent confirm that
they are in advanced discussions with respect to a potential full combination,
which would take the form of a public exchange offer by Nokia for
Alcatel-Lucent. There can be no certainty at this stage that these discussions
will result in any agreement or transaction.

A further announcement will be made when appropriate.

FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements, such as statements that
relate to a potential combination or the terms thereof. These forward-looking
statements are subject to a number of risks and uncertainties, including risks
and uncertainties relating to parties reaching an agreement on a potential
combination and the terms thereof.  Many of these risks and uncertainties are
beyond our control and could cause actual results to differ materially from
the forward-looking statements.

About Nokia
Nokia invests in technologies important in a world where billions of devices
are connected. We are focused on three businesses: network infrastructure
software, hardware and services, which we offer through Nokia Networks;
location intelligence, which we provide through HERE; and advanced technology
development and licensing, which we pursue through Nokia Technologies. Each of
these businesses is a leader in its respective field. http://company.nokia.com
 
Media Enquiries:
Nokia Communications
Tel. + 358 4080 3 4080
Email: press.services@nokia.com

Brunswick
Tel. +44 207 404 5959
Tel. +33 1 53 96 83 83

Investor Enquiries:
Nokia Investor Relations
Tel. +358 4080 3 4080
Email: investor.relations@nokia.com

 

(BFW) F2i Fund May Buy Stake in Rai Way, Il Sole Reports


F2i Fund May Buy Stake in Rai Way, Il Sole Reports
2015-04-14 06:32:49.755 GMT


By Alessandra Migliaccio
(Bloomberg) -- Infrastructure fund F2i considering buying
minority stake in Rai Way alongside main bidder Ei Towers, Il
Sole reports without saying where it got the information.
* NOTE: EI Towers Must Clarify Rai Way Goals Before a Bid,
Consob Says Link

Link to Company News:{EIT IM <Equity> CN <GO>}
Link to Company News:{RWAY IM <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:
Alessandra Migliaccio in Rome at +39-06-4520-6324 or
amigliaccio@bloomberg.net

To contact the editor responsible for this story:
Ross Larsen at +39-06-4520-6327 or
rlarsen2@bloomberg.net

(Citi) Global Oil Vision - Survivors’ Party (BP dwg TLW upg )

Global Oil Vision - Survivors’ Party
* Oil price recovery necessary, but not a return to triple-digit – Our deep analysis
of 325 assets that forms the industry supply-curve concludes that oil markets should
see a recovery to 60s-70s Brent pricing 2016/17 as current spot oil prices are too
low to incentive future supply needs. However, we also see little rationale for prices
to return to the triple-digit environment of 2010-14. For the first time in a decade the
supply-curve is beginning to flatten. Marginal incentive prices now look to be in the
$65-75/bbl Brent range, down 6-8% YoY, a shift prompted by supply-chain deflation
and a continued elongation of the middle of the curve from US shale.
* Downward supply-curve shift will leave stranded capital – In the pursuit of
growth in recent years we think many companies have not left enough headroom to
deal with a lower oil price environment. Among our 37 Oil Vision companies we
think as much as 40% of the current investment cycle could prove economically
challenged at oil prices below $75/bbl. Most challenged in this new paradigm are
focused LNG and heavy oil players, as well as most of the Big Oil names.
* Align with defensive growth – We think this downward shift requires a
fundamental retool of portfolios and investment strategies. Investors are best served
to align with companies that can grow from 1st -2nd quartile on the supply-curve; US
shale, Brazil, Kurdistan and Russia brownfield standout. These companies should
be able to drive better capital returns, or alternatively have the value arbitraged by
higher-cost companies looking to reposition down the curve (e.g. RDS-BG).
* Shale is the core of the 'Survivors’ Party'; COP and DVN preferred – US shale
continues drive a wedge in the middle of the supply-curve, with Eagle Ford,
Permian and Mid Continent shales all expected to establish as large 2nd-quartile
assets. Although a lot is already appreciated – many of the high-quality shale plays
are well-valued by the market – we think investors can still get good value exposure
in Buy-rated DVN and also COP (not a pure shale player, but most of its growth is).
* Value in International; ROS, upgrade TLW – BG (1st/2nd quartile Brazil) is a
reminder that low-cost supply is not simply about US shale. In the international
arena we think Russia brownfield re-development will prove more robust to low oil
prices than the market believes – we highlight Buy-rated ROS. We have also
upgraded TLW to Buy/High Risk (433p price target) on a view that low-cost growth
in Ghana and E. Africa is overly discounted on balance-sheet concerns.
* Accepting the New Paradigm – For companies that are challenged with stranded
assets we look for companies to protect ROE through self-help. We think Buyrated
TOT and STO hold the most potential. We have previously highlighted BP
on a self-help theme, but with much of this potential now being realized in the
market valuation we have downgraded BP to Neutral.

>>> Brokers Upgrades & Downgrades - 14th of April 2015

>>> Up
*FORTUM RAISED TO NEUTRAL VS SELL AT CITI
*GAZPROM RAISED TO BUY VS NEUTRAL AT UBS
*TULLOW OIL RAISED TO BUY VS NEUTRAL AT CITI

>>> Down
*ABERDEEN ASSET MGMT CUT TO UNDERPERFORM AT RBC CAPITAL
*BP CUT TO NEUTRAL VS BUY AT CITI
*GAZPROM NEFT CUT TO NEUTRAL VS BUY AT UBS
*HSBC CUT TO SELL VS HOLD AT INVESTEC
*ICADE CUT TO NEUTRAL VS BUY AT UBS
*JD WETHERSPOON CUT TO REDUCE VS HOLD AT NUMIS, PT 680P VS 800P
*LUKOIL CUT TO NEUTRAL VS BUY AT UBS
*MARSTON’S CUT TO ADD VS BUY AT NUMIS, PT 180P
*METRO AG CUT TO SELL VS HOLD AT SOCGEN
*SHELL CUT TO HOLD AT JEFFERIES
*TATNEFT CUT TO NEUTRAL VS BUY AT UBS
*VERBUND CUT TO SELL VS NEUTRAL AT CITI
*VOESTALPINE CUT TO SECTOR PERFORM VS OUTPERFORM AT RBC

>>> PT Change
/

>>> Initiation
*AB INBEV RATED NEW NEUTRAL AT SUSQUEHANNA, PT $133
*BALOISE RATED NEW NEUTRAL AT UBS, PT CHF130
*GJENSIDIGE RATED NEW SELL AT UBS, PT NOK127
*HELVETIA RATED NEW BUY AT UBS, PT CHF610
*SAMPO RATED NEW SELL AT UBS, PT EU43
*STOREBRAND RATED NEW NEUTRAL AT UBS, PT NOK30
*SWISS LIFE RATED NEW BUY AT UBS, PT CHF285
*TOPDANMARK RATED NEW NEUTRAL AT UBS, PT DKK218
*TRYG RATED NEW NEUTRAL AT UBS, PT DKK800

>>> Call
/