>>> Vivendi to acquire Dailymotion for EUR 250m – reports (translated)

Vivendi to acquire Dailymotion for EUR 250m – reports (translated)

Listed French Telco Orange is understood to be close to finalising the sale of the French video-streaming site Dailymotion, to the listed French music and TV group Vivendi, French daily Le Figaro reported. The report, which did not reveal its source of information, said that the board of Orange is meeting today (Tuesday) to approve the transaction, which could amount to EUR 250m.

The report noted that Vivendi also owns shares in music streaming specialist Spotify.

A Financial Times report said Vivendi would acquire a stake of 75% to 80% in Dailymotion, should the deal go ahead. The newspaper cited people familiar with the situation who said the potential deal between Vivendi and Orange could value Dailymotion at EUR 250m (USD 273m).

Le Figaro, Financial Times

>>> Brokers Upgrades & Downgrades - 7th of April 2015

>>> Up
*RYANAIR RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*TOTAL RAISED TO OUTPERFORM AT RBC CAPITAL


>>> Down
*ADIDAS CUT TO UNDERPERFORM AT RAYMOND JAMES
*AIR FRANCE-KLM CUT TO UNDERWEIGHT VS OVERWEIGHT AT JPMORGAN
*ALPHA BANK CUT TO NEUTRAL VS BUY AT BOFAML
*EUROBANK CUT TO UNDERPERFORM VS NEUTRAL AT BOFAML
*IAG CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*ITALCEMENTI CUT TO SELL VS NEUTRAL AT UBS
*LUFTHANSA CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN

>>> PT Change


>>> Initiation
*JERONIMO MARTINS RATED NEW REDUCE AT NOMURA
*WIZZ AIR RATED NEW BUY AT CITI, PT 1,630P

>>> Call

(BFW) FedEx Offers to Buy TNT Express for EU8 Per Share in Cash

FedEx Offers to Buy TNT Express for EU8 Per Share in Cash
2015-04-07 05:06:04.566 GMT


By Jurjen van de Pol
(Bloomberg) -- Offers values TNT Express at EU4.4b; shares
closed at EU6 on April 2.
* Says offer represents premium of 33% over April 2 closing
price, 42% over avg weighted price over last 3 months
* Deal supported by TNT Express’ executive, supervisory boards
* PostNL to tender its 14.7% TNT Express shareholding
* TNT Express’ airline operations to be divested
* Sees deal closing in 1H 2016
* Cos. “confident that anti-trust concerns, if any, can be
addressed adequately in a timely fashion”


Link to Statement:Link
Link to Company News:{PNL NA <Equity> CN <GO>}
Link to Company News:{FDX US <Equity> CN <GO>}
Link to Company News:{TNTE NA <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:
Jurjen van de Pol in Frankfurt at +49-69-9204-1104 or
jvandepol@bloomberg.net

To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net

>>> Asian Update

Asian Mid-session Update: Samsung Electronics profits fall again; PBoC offers reverse repos at lower yield


***Economic Data***
- (AU) AUSTRALIA FEB RETAIL SALES M/M: 0.7% V 0.4%E (5-month high)
- (AU) AUSTRALIA MAR ANZ JOB ADS M/M: -1.4% V 0.7% PRIOR (first decline in 9 months)
- (AU) AUSTRALIA MAR AIG PERFORMANCE OF SERVICES INDEX: 50.2 V 51.7 PRIOR (2nd consecutive expansion)
- (JP) JAPAN MAR OFFICIAL RESERVE ASSETS: $1.25T V $1.25T PRIOR
- (PH) PHILIPPINES MAR CPI M/M: -0.1% V 0.0%E; Y/Y: 2.4% V 2.6%E; CPI CORE Y/Y: 2.7% V 2.8%E

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +1.1%, S&P/ASX +1.3%, Kospi flat, Shanghai Composite +1.4%, Hang Seng closed, Jun S&P500 -0.1% at 2,071

***Commodities/Fixed Income***
- Jun gold -0.4% at $1,213/oz, May crude oil -0.8% at $51.75/brl, May copper +0.8% at $2.74/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 1.7 tonnes to 735.5 tonnes; Lowest since Jan 17th
- (CN) PBoC to inject CNY20B in 7-day reverse repos (12th consecutive injection); Offer yield at 3.45% v 3.55% prior on Apr 1st (4th yield cut this year)
- (KR) South Korea sells 30-yr govt bonds at avg yield of 2.350%
- USD/CNY: PBoC sets yuan mid point at 6.1305 v 6.1348 prior setting (strongest yuan setting since Feb 16th)

***Market Focal Points/FX***
- Asian indices are tracking the strong session of gains on Wall St, where investors cheered stronger than expected Services ISM and also concluded the disappointing non-farm payrolls could be written off due to adverse weather. A sharp bounce in the energy sector hurt airlines, even as May WTI consolidated the overnight rally below $52/brl. Central Banks of Australia and India are on tap for policy decisions in the afternoon session. Both are expected to hold rates, although the fixed income market is pricing in for the former to cut by 25bps to record low 2.00%.

- Among the notable developments in the corporate space, weak iron ore prices plaguing Australia producers are threatening Atlas Iron as it announced a trading halt to consider its financial outlook, asset sale opportunities and capital structure. In South Korea, Samsung Electronics announced its preliminary guidance for Q1. Operating profit of KRW5.9T is seen topping consensus of KRW5.5T, even though it would also mark the 6th consecutive quarter of y/y decline, down over 30% from comparable period. Rev of KRW47T is seen down 12% y/y and below KRW50Te. Final results for Samsung will be released in late April.

- In China, the PBoC announced its 12th consecutive injection in its regular market operation via 7-day repos. Moreover, the central bank lowered the offering yield by another 10bps after taking a pause in reducing that rate last week. Among notable press from China, one report called stock margin trading risk controllable even though margin debt hit a fresh record high in March. Regionally, China and Japan fin mins announced plans to hold their first high-level meeting since April 12th, with some of the attention dedicated to AIIB.

- Economic datapoints of note were largely out of Australia, even though the impact on the markets was muted going into the RBA decision. Retail sales topped consensus, hitting a 5-month high, with analysts noting the impact of lower borrowing costs from latest RBA cuts. Ahead of next week's official employment data, Australia ANZ job ads registered their first sequential decline in 9 months, and ANZ economist said the figures "may suggest that peak growth in job advertisements has now passed." AiG Services PMI slowed, but remained in expansion for 2nd straight month. AiG economists noted that "despite the benefits from a lower Australian dollar and a pickup in residential building activity over the past year, respondents expressed ongoing concerns about weak local economic conditions, fragile consumer and business sentiment."

- AUD/USD rose as high as $0.7620 in the session in the aftermath of the retail sales beat, up about 40pips from session lows. Other USD majors were in narrow ranges - EUR/USD bounced from late US session selloff but the recovery was capped at $1.0950, and USD/JPY traded within 20 pips above ¥119.40.

***Equities***
US equities / ADRs:
- AZZ: Guides FY15 slightly above midpoint of prior $2.40-2.60 v $2.48e, Rev below prior $825-850M v $836Me; reaffirms FY16;
- CLVS: Receives Breakthrough Therapy Designation for Rucaparib for Monotherapy Treatment of Advanced Ovarian Cancer in Patients with BRCA-mutated Tumors (Inclusive of both Germline and Somatic BRCA Mutations); +9.1% afterhours
- CLDX: Phase 2 EMERGE Study of Glembatumumab Vedotin in Metastatic Breast Cancer Published in Journal of Clinical Oncology; +0.9% afterhours
- VIA: To record Q2 $785M charge related to realignment of businesses, sees cost savings of $350M; will temporarily halt buyback program; -0.6% afterhours
- GM: Canada to Sell 73.4M shares of GM Common Stock (4.5% of outstanding); -1.7% afterhours
- MERU: Restructuring sales organization; exploring strategic options, affirms Q1; -2.0% afterhours
- SHLM: Reports Q2 adj $0.39 v $0.43e, R$542.3M v $588.5M y/y; -2.9% afterhours
- HLSS: New Residential Investment announces entry into purchase agreement and termination of merger agreement with HLSS; New Residential Investment to acquire HLSS for $1.2B; -3.2% afterhours
- OCUL: Reports Topline Clinical Data for its Second Phase 3 Clinical Trial Evaluating OTX-DP for the Treatment of Post-Surgical Ocular Inflammation and Pain; -16.5% afterhours

Notable movers by sector:
- Consumer Discretionary: Olympus Corp 7733.JP +2.1% (seeks to expand market share in China); Adastria Holdings 2685.JP -12.7% (FY14/15 results)
- Financials: Industrial Bank of China 601166.CN +5.6%, Ping An Bank 000001.CN +2.9%, Shanghai Pudong Development Bank 600000.CN +2.8% (China to establish financial institution for affordable home mortgages)
- Materials: Perseus Mining PRU.AU +3.3% (shareholder raises stake); Beadell Resources BDR.AU -5.9% (Q1 sales results); Rio Tinto RIO.AU +1.5% (completes share repurchases)
- Industrials: CSR 601766.CN +10.0%, CNR 601299.CN +10.0% (China approves CSR, CNR merger)
- Technology: Samsung Electronics 005930.KR -0.1% (prelim Q1 results)
- Healthcare: Pharmaxis PXS.AU +11.5% (interim Phase 1 results)

Fwd:Brief>>> US After Hours : HLSS -3.2%, AZZ -2.1%, SHLM -0.1% followin

After Hours Summary: HLSS -3.2%, AZZ -2.1%, SHLM -0.1% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to news: VBIV +28.0% (announced collaboration with Sanofi Pasteur (SNY) to to apply VBI's Lipid Particle Vaccine formulation technology to further the development of Sanofi Pasteur vaccine candidate), CLVS +7.8% (received breakthrough therapy designation for Rucaparib for monotherapy treatment of advanced ovarian cancer in patients with BRCA-mutated tumors), OCN +7.8% (co disclosed it amended its agreement with Home Loan Servicing Solutions (HLSS); New Residential Investment (NRZ) agreed to a multi-year extension of the servicing contracts with OCN), QEPM +3.8% (to be acquired in full by Tesoro Logistics LP (TLLP); consideration is valued at $17.09 per QEPM common unit), DUK +1.0% (received approval for new Electric Security Plan), CLDX +0.8% (announced that data from the Phase 2 EMERGE study of glembatumumab vedotin in metastatic breast cancer have been published in the Journal of Clinical Oncology)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: HLSS -3.2%, AZZ -2.1%, SHLM -0.1%

Companies trading lower in after hours in reaction to news: OCUL -33.4% (reported topline clinical data for its second Phase 3 clinical trial evaluating OTX-DP for the treatment of post-surgical ocular inflammation and pain: primary efficacy endpoint for pain met, primary efficacy endpoint for inflammatory cells not attained), HELI -12.8% (announced tender offer to purchase up to $80 mln of its outstanding 9.375% senior notes due 2021), MX -8.3% (announced it received an expected notice of noncompliance with NYSE continued listing requirements due to failure to file Form 10-K), GEL -5.9% (increased quarterly dividend 10.9% to $0.61/share; announced public offering of 4 mln common units representing limited partner interests), NRZ -4.0% (announced public offering of 40 mln shares of common stock; ~28.3 mln shares being offered by Home Loan Servicing Solutions (HLSS), remainder being sold by the company), WBAI -3.6% (issued clarifiaction on announcement regarding online lottery sales in China; believes approval to provide online lottery sales in China is valid and has not been revoked or amended), DYAX -3.2% (announced proposed 7 mln share public offering of common stock), FCH -2.5% (announced that it is commencing a public offering of 14.5 mln shares of its common stock; reported Q1 RevPAR grew 13.1% yoy to $132.9), HPP -1.6% (announced an underwritten public offering of 5,000,000 shares of its common stock by certain funds affiliated with Farallon Capital Management) 

>>> US Close Dow+0,66% S&P+0,66% Nasdaq+0,62% Russell+0,39%

Closing Market Summary: Stocks Shake Off Disappointing Jobs Report

The major averages began the week on an upbeat note after shaking off their opening losses that were brought on by a disappointing jobs report for March. The S&P 500 spiked 0.7% while the Nasdaq Composite (+0.6%) followed not far behind.  

The Nonfarm Payrolls report for March was released on Friday and it disappointed on all fronts. Only 126,000 payrolls were added while the consensus expected a reading of 250,000. Since the cash market was closed on Friday, the news weighed on the futures market, sending futures on the S&P 500 down 20 points.

Index futures were able to cut their losses in half by today's opening bell and the S&P 500 erased a ten-point deficit just 15 minutes into the session. The index spent the rest of the day in a steady climb with all ten sectors logging gains. Once again, the market interpreted bad news as good, rallying on the belief that the disappointing jobs report will cause the Federal Reserve to postpone its first rate hike.

Three sectors posted gains of 1.0% or more with energy (+1.8%) spending the bulk of the session in the lead. The growth-sensitive sector trimmed its 2015 decline to 1.3% with significant help from crude oil, which surged 6.1% to $52.11/bbl. This morning, Saudi Arabia announced it will hike its prices for oil exports to Asia for the second consecutive month.

Interestingly, crude oil held its ground during afternoon action even as the Dollar Index (97.03, +0.48) erased roughly half of its decline from Friday. Meanwhile, Treasuries retraced their entire spike from Friday, sending the 10-yr yield higher by seven basis points to 1.90%.

Elsewhere, the top-weighted technology sector (+1.0%) began among the laggards, but finished ahead of most other groups. Large cap names did some heavy lifting with Microsoft (MSFT 41.54, +1.26) jumping 3.1% after Wells Fargo upgraded the stock to ‘Outperform' from ‘Market Perform.' Meanwhile, chipmakers underperformed with the PHLX Semiconductor Index adding 0.5%.

Also of note, the industrial sector (+0.8%) outperformed even as transport stocks struggled. The Dow Jones Transportation Average lost 0.4% with airlines pacing the decline amid today's increase in oil prices.

Over on the countercyclical side, consumer staples (+0.8%) and utilities (+1.3%) outperformed while telecom services (+0.4%) and health care (+0.1%) lagged. Biotechnology kept the health care sector under pressure with iShares Nasdaq Biotechnology ETF (IBB 338.85, -0.85) shedding 0.3%.

Today's participation was ahead of recent averages with more than 885 million shares changed hands at the NYSE floor.

Economic data was limited to Nonfarm Payrolls and ISM Services:
  • Nonfarm payrolls increased by only 126,000 in March to follow a downwardly revised 264,000 (from 295,000) in February. The Consensus expected an increase of 250,000 
    • That was the first time jobs growth did not exceed 200,000 since February 2014, and it was the smallest increase since 109,000 jobs were added in December 2013 
    • Private payrolls increased by 129,000 jobs, down from a downwardly revised 264,000 (from 288,000) in February while the consensus expected the addition of 245,000 jobs. 
    • Average hourly earnings increased by a solid 0.3% after increasing by only 0.1% in February, but those gains were offset a significant cut in the number of hours workers. The average workweek fell to 34.5 hours in March from 34.6 in February 
    • Altogether, aggregate earnings increased by only 0.1% in March, down from a 0.3% increase in February, which is not sufficient to support consumption growth 
  • The ISM Non-Manufacturing Index declined to 56.5 in March from 56.9 in February while the consensus expected no change 
Tomorrow, the Job Openings and Labor Turnover Survey for February will be released at 10:00 ET while the February Consumer Credit report will cross the wires at 15:00 ET (consensus $12.50 billion).
  • Nasdaq Composite +3.8% YTD 
  • Russell 2000 +4.7% YTD 
  • S&P 500 +1.1% YTD 
  • Dow Jones Industrial Average +0.3% YTD

>>> Delphi +3,62% with heavy volume (already 2,8m shares)

I have been talking of this sector on th last few weeks and strongly believe this is one of the sector that should continue to OP...valuation will change on this sector to go on much higher level...we are going to see on re-rating that already started...keep an eye on these names...


DLPH Apr 82.5 calls are seeing interest with the underlying stock trading higher by 4% following broker target increases (volume: 2730, open int: 190, implied vol: ~27%, prev day implied vol: 18%) -- shares higher by 7% over last two session following guidance update. Co is expected to report its full quarter late April and annual meeting is scheduled for April 23 starting at 4:00 AM ET


*** Delphi Automotive target raised to $80 at UBS; Neutral
UBS raises their DLPH tgt to $80 from $73 noting the reduction in manufacturing & material costs also help to offset the +30bps in higher engineering which aligns well with its growth plans driven by technology. Firm continues to be surprised by co's ability to grow already industry leading margins. They are also impressed with co's gas direct injection combustion ignition (GDCI) technology as it enhances fuel economy by 38% over traditional gas engines.


*** Delphi Automotive target raised to $99 from $90 at Robert W. Baird (81.18)

*** Delphi Automotive target raised to $95 at RBC Capital Mkts; Outperform (81.18)
RBC Capital Mkts raises their DLPH tgt to $95 from $89 noting co's analyst day reinforced firm's view that co is a best-in-class operator, with a solid growth trajectory, further margin expansion opportunity and strong FCF generation. While the story is well appreciated by auto investors, firm believes there is an opportunity for broader general/industrial analysts to look at and appreciate the name.

WSJ : Diverging Metal Prices Could Reignite Glencore’s Interest in Rio Tinto

Diverging Metal Prices Could Reignite Glencore’s Interest in Rio Tinto

Snap-back in copper price amid further drop in iron-ore reignites merger speculation

The biggest, most complex mining deal ever broached could boil down to a simple ratio: the price of copper versus the price of iron ore.

Glencore PLC, the Swiss mining giant with massive copper holdings, last year proposed a roughly $150 billion merger with Rio Tinto PLC, among the world’s biggest producers of iron ore. Glencore’s announcement that Rio rebuffed the bid on Oct. 7 set off a six-month moratorium under U.K. law from another approach.

That cooling-off period ends on Tuesday, potentially opening the door to more talks. The two miners had never publicly disclosed potential terms, and Rio executives haven’t encouraged new talks.

But two factors have swung in Glencore’s favor that could encourage a deal creating the world’s largest mining company and give investors exposure to every major commodity.

Glencore’s shares are up more than 15% since mid-January, when they briefly hit their lowest level since the company went public in 2011 amid a decline in copper prices, while Rio’s have dipped 3%.

A big reason for the divergence: Iron-ore prices have continued their long decline from highs of $190 a ton reached in 2011, recently hitting a 10-year low below $50 a ton. Copper prices, meanwhile, have rebounded by about 5% to just north of $6,000 a ton in the past month.

Industry experts also don’t expect to see a recovery in the price of iron ore, a primary steel-making ingredient, anytime soon. Caroline Bain, senior commodities economist at Capital Economics Ltd. in London, last month forecast that iron-ore prices are likely to hit $45 a ton by year-end as large surpluses of iron-ore continue to flood into the market and Chinese demand cools.

Such declines have been driven by unrelenting increase in iron-ore production from Rio Tinto and its competitors such as BHP Billiton Ltd. and Vale SA. If production isn’t curbed, prices could continue to fall, analysts say.

“Sooner or later either [Rio is] going to have to back away from the volume-growth strategy, or they’re going to have to face the prospect that their earnings are going to fall through the floor,” said Sanford C. Bernstein mining analyst Paul Gait. If Rio’s earnings keep falling and its share price suffers, “they’re going to be vulnerable to Glencore,” he said.

Rio Tinto Chief Executive Sam Walsh has repeatedly said he isn’t interested in a deal with Glencore. At a February event in London, Mr. Walsh said bluntly the merger “isn’t going to happen,” indicating he thought Glencore couldn’t pay a high-enough price.

Glencore’s shares have lost about one-fourth of their value since last July, when its chief executive, Ivan Glasenberg, placed a call to Rio Tinto Chairman Jan du Plessis to discuss a potential merger. Since Glencore would need to offer shares as part of the deal, the math has become significantly more daunting for Mr. Glasenberg.

Glencore also is heavily exposed to the price of coal, which has stumbled for similar reasons to iron ore. Plus, any deal would face strict scrutiny from antitrust authorities in the U.K. and Australia, where Rio Tinto is based.

One of Glencore’s main hurdles in executing a Rio Tinto deal is its debt-heavy balance sheet. Glencore had $30.5 billion in net debt at the end of 2014, compared with Rio’s $12.5 billion in debt. That puts Glencore’s leverage ratio—net debt divided by the sum of debt and total equity—at about 40%, nearly twice the leverage at Rio Tinto.

That could put a cap on how much more debt Glencore can take on to fund a Rio bid. More debt could threaten its credit ratings, putting pressure on its trading arm, which relies on leverage to fuel its operations.

In Glencore’s favor are rebounding copper prices, which could help push its share price higher. Mr. Gait of Sanford C. Bernstein expects copper and other factors to help lift Glencore’s share price to nearly double where it currently stands.

Perhaps the biggest wild card is China. China’s state-owned aluminium company, Chinalco, is Rio Tinto’s biggest shareholder. It has seen the value of its 9.8% stake in the company cut roughly in half since it made the investment in 2008. Rio in 2009 rebuffed a bid by Chinalco to double its stake, which would have given it a seat on Rio’s board.

Those factors have brewed tensions with Chinalco, potentially leaving Beijing open to new leadership at Rio Tinto, said Michael Komesaroff, a long-time analyst of China and natural-resource trends.

A person who picked up the phone at Chinalco’s Beijing office said nobody was available for comment over the weekend, which was also a holiday in China.

Glencore in its 2013 merger with Xstrata proved it could bargain with the Chinese, getting Beijing’s approval for the deal in part by agreeing to sell its Las Bambas Peruvian copper project to a Chinese consortium.

China, the world’s biggest consumer of copper, is unlikely to have lost its appetite for ownership of copper mines, analysts say. One option for Glencore would be to offer to sell one of Rio’s prized copper mining assets, such as its 30% stake in Chile’s Escondida mine. “If the Chinese want to make it happen, it’s more than likely going to happen,” said Mr. Komesaroff said.

>>> FT article on Banks profit ahead of US Banks numbers next week

Majour US banks are reporting next week, could be one of the sector in play in Europe and even more in the US
US BAnks have UP Europena Banks by almost 9% on the last 4 weeks...
Sector will be volatile, BKX doesn't look very bullish but testing today its 200d MA, European Banks Closed on Record High levels, but still late compared to the EuroStoxx...


FT : Banks get smaller slice of trading cake

The crumb-gathering business is not what it used to be.
“Just imagine that a bond is a slice of cake,” said Judy McCoy, wife of Sherman, the self-styled master of the universe, in Tom Wolfe’s The Bonfire of the Vanities. “Every time you hand somebody a slice of that cake, little crumbs fall off. And you’re allowed to keep those crumbs.”

The first quarter was a good one for the banks, in that respect. Revenues from trading bonds and other financial instruments might have lifted Morgan Stanley to its best quarter for seven years, figures could show next week. Others did well too, boosted by heightened volatility in interest rates and currencies.
But the bigger picture is that the crumbs are adding up to less and less. According to analysis from Oppenheimer, global banks’ trading revenues as a percentage of total equity and bond market capitalisation have roughly halved since the crisis, from about 12 basis points to 5 or 6.
That reflects a big regulatory squeeze. Since Lehman Brothers failed, regulators have gone all out to make the banking system more stable, by curbing proprietary trading while imposing tougher capital and liquidity requirements.
Meanwhile, with the US Federal Reserve holding rates near zero, core revenues for the banks have been remarkably steady. Another piece of analysis by Oppenheimer shows that total net interest income at six of the biggest banks has ranged between $50.6bn and $52.4bn in each of the past 12 quarters.
Judging by spreads in credit markets, where investment-grade banks have converged with single-A rated industrials, the likes of Citigroup and Bank of America have become the “new safe havens”, says UBS.
Things are unlikely to get much racier in coming years. By the end of 2015, global regulators should have given banks a better idea of the kinds of equity and equity-like debt they need to hold by 2019, when new rules take effect. Even State Street, which aced last month’s US stress tests, has a shortfall of about $2bn on CreditSights’ estimates.
Six or seven years on from the crisis, the banks may not be significantly safer. They may not be better managed. But the way investors look at it, they are a lot less exciting.