>>> Clariant Chairman Rudolf Wehrli says company not for sale

Clariant Chairman Rudolf Wehrli says company not for sale (translated)

Clariant, the listed Swiss chemicals group, is not for sale, Tagesanzeiger reported. The Swiss daily said Clariant Chairman Rudolf Wehrli made this statement at the Clariant AGM on 31 March.

German Evonik Industries has looked at Clariant among other potential acquisition targets according to insiders, the report stated.
Tagesanzeiger

>>> Asian Update

Asian Mid-session Update: China Manufacturing PMIs edge higher; Japan Tankan anemic as CapEx falls


***Economic Data***
- (CN) CHINA MAR MANUFACTURING PMI: 50.1 V 49.7E; 1st expansion after two consecutive contractions
- (CN) CHINA MAR FINAL HSBC MANUFACTURING PMI: 49.6 V 49.3E
- (CN) CHINA MAR NON-MANUFACTURING PMI: 53.7 V 53.9 PRIOR
- (JP) JAPAN Q1 TANKAN MANUFACTURING INDEX: 12 V 14E; LARGE ALL INDUSTRIAL CAPEX Y/Y: -1.2% (first decline in 2 years) V +0.5%E; LARGE MANUFACTURING OUTLOOK: 10 V 16E
- (JP) JAPAN MAR FINAL MARKIT/JMMA MANUFACTURING PMI: 50.3 V 50.4 PRELIM (10TH CONSECUTIVE EXPANSION)
- (AU) AUSTRALIA FEB BUILDING APPROVALS M/M: -3.2% V -4.0%E; Y/Y: 14.3% V 10.7%E (5th straight increase)
- (AU) AUSTRALIA MAR CORELOGIC HOUSE PRICES M/M: 1.4% V 0.3% PRIOR
- (AU) AUSTRALIA FEB AIG PERFORMANCE OF MANUFACTURING INDEX: 46.3 V 45.4 PRIOR (4th consecutive contraction)
- (NZ) NEW ZEALAND MAR QV HOUSE PRICES: 7.7% V 6.4% PRIOR
- (KR) SOUTH KOREA MAR HSBC MANUFACTURING PMI: 49.2 V 51.1 PRIOR
- (KR) SOUTH KOREA MAR TRADE BALANCE: $8.4B (record high) V $8.1BE
- (KR) SOUTH KOREA FEB CPI M/M: 0.0% V 0.1%E; Y/Y: 0.4% (16-year low) V 0.4%E; CPI CORE Y/Y: 2.1% V 2.0%E
- (ID) Indonesia Mar HSBC Manufacturing PMI: 46.4 v 47.5 prior (6th straight month of contraction and record low reading)

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.9%, S&P/ASX -0.6%, Kospi -0.5%, Shanghai Composite +0.9%, Hang Seng +0.5%, Jun S&P500 -0.6% at 2,045

***Commodities/Fixed Income***
- Jun gold +0.4% at $1,188/oz, May crude oil -0.5% at $47.30/brl, May copper +0.4% at $2.75/lb
- (US) API PETROLEUM INVENTORIES: CRUDE: +5.2M (3rd straight build) v +4.5Me, GASOLINE: -4.1M v -1Me, DISTILLATE: +0.02M v -0.5Me
- SLV: iShares Silver Trust ETF daily holdings fall to 10,014 tonnes from 10,074 tonnes prior; lowest since Feb 17th
- (JP) BOJ offers to buy ¥375B in 1-3yr JGBs, ¥375B in 3-5yr JGBs, ¥240B in 10-25yr JGBs and ¥140B in JGBs with maturity over 25-yr

***Market Focal Points/FX***
- Asian indices are mixed, as markets in China respond to a surprise expansion in manufacturing PMI, while Tokyo succumbed to a disappointing quarterly Tankan. China released PMI figure that showed manufacturing return to expansion after two months of contraction. Output component saw the biggest increase, as the slide in new export orders pointed to tepid external demand. Non- manufacturing was down slightly, bus still firmly in expansion territory. HSBC data, measuring smaller enterprises, topped consensus but was still in contraction at 49.6, and resident economist pointed to "the pace of job shedding the strongest since last summer". Economist with NBS downplayed the rise in the official figure, citing a seasonal rebound after the holiday, but the results still yielded a bounce in AUD/USD, rising about 40pips above 0.7660. Also of note in China, avg prices of new residential properties across 100 major cities fell 0.15% - a similar margin relative to the prior month's -0.24%. China Index Academy added that thus far in march, housing inventories have been falling.

- Japan Q1 Tankan missed expectations on manufacturing side, and industrial capex was particularly troubling as the first decline in 2 years. BOJ noted the unchanged sentiment among big auto makers and electrical machinery makers despite weak Yen, while some lawmakers moved to pressure the central bank into further easing. Chief cabinet Seg Suga however remarked that economic revival is still progressing smoothly. Separately, Japan Markit PMI retreated by a decimal to 50.3, even though remaining in expansion for the 10th month. USD/JPY fell over 50pips below 119.50 in the aftermath of the Tankan data, weighing on Tokyo stocks.

- General risk aversion after the Tankan coincided with the selloff in US equity futures, as S&Ps fell over 20pts or 1% in electronic trade. Accelerated selling was already evident in the final hour of the US session, however the headwinds will likely carry over into Wednesday, with slumping crude oil prices once again cited in the retreat. After earlier report suggesting the two sides in the Iran nuclear talks remain at odds, Russian Foreign Min Lavrov announced the main elements of a deal have been reached and the final details will be agreed upon by June 30th. WTI continued its retreat from US hours falling below $47.50 in electronic trade going into Wednesday's DOE inventories release.

***Equities***
US equities / ADRs:
- DYAX: Announces Positive Results from Phase 1b Clinical Trial of DX-2930; +49.8% afterhours
- BGCP: Guides Q1 to "low end of prior guidance" of $490-520M v $511Me; -0.6% afterhours
- SNX: Reports Q1 $1.46 v $1.52e, R$3.2B v $3.43Be; -3.3% afterhours
- RKT: Cuts Q2 Adj EPS guidance to $0.70-0.75 v $0.86e (prior guided $0.80-0.90); -5.1% afterhours
- CRS: Guides Q3 $0.26-0.30 (ex-restructuring costs) v $0.55e; intends to conduct restructuring, cut 200 jobs (10% of workforce); -6.4% afterhours
- UTIW: Reports Q4 -$1.02 v -$0.07e, R$964.6M v $1.07Be; -12.6% afterhours

Notable movers by sector:
- Consumer Discretionary: ABC-MART 2670.JP -3.4% (speculation on FY14/15 results); Wynn Macau 1128.HK -2.0% (FY14 results); FAW Car 000800.CN +0.9% (FY14 results)
- Financials: Shimao Property 813.HK +2.0% (FY14 results)
- Materials: Sumitomo Metal Mining 5713.JP -3.3% (FY15 production guidance); Itochu Corp 8001.JP -2.2% (to book impairment)
- Industrials: UGL Ltd UGL.AU -5.2% (provides update on rail corridor project)
- Healthcare: Hisamitsu Pharmaceutical 4530.JP -3.3% (speculation on FY15/16 results)
- Utilities: CT Environmental Group 1363.HK +2.3% (FY14 results)

>>> US After Hours Summary: STLD +7.0%, FSI +3.9%, FRPT +0.3%, CTSO -4

After Hours Summary: STLD +7.0%, FSI +3.9%, FRPT +0.3%, CTSO -47.0%, UTIW -11.8%, RKT -5.1% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: STLD +7.0%, FSI +3.9%, FRPT +0.3%, WG +0.2%

Companies trading higher in after hours in reaction to news: VLTC +98.0% (Carl Icahn disclosed 52.3% active stake in 13D filing), DYAX +49.8% (announced positive results from Phase 1b Clinical Trial of DX-2930 for the prevention of hereditary angioedema attacks), INS +9.4% (signed an agreement to sell its ChemFree subsidiary to CRC Industries for ~$21.6 mln), PMFG +2.1% (announced agreement to sell its ALCO products and Boss-Hatten heat exchanger brands to Koch Heat Transfer; financial details not disclosed), CHK +1.4% (Chairman disclosed purchase of 1 mln shares, worth total of $13.979 mln, 3/27 transaction date), RUBI +1.0% (reached a definitive agreement to acquire privately held Chango Inc for ~$122 mln; reaffirms its confidence in its financial guidance on a stand alone basis for the first quarter of 2015 as previously provided), 

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: CTSO -47.0%, UTIW -11.8%, VUZI -11.3%, RGSE -7.0%, CRS -6.1%, RKT -5.1%, SNX -3.3%, NG -3.0%

Companies trading lower in after hours in reaction to news: CTP -3.7% (filed to delay Form 10-K; Sylvain Dhenin to assume role of CEO immediately following the filing), BEL -2.4% (disclosed that Filip Boyen has resigned as Chief Operating Officer effective immediately), BURL -0.9% (announced that certain stockholders intend to offer ~12.5 mln shares of common stock in an underwritten public offering), CGI -0.8% (filed for $250 mln mixed securities shelf offering), MEG -0.8% (priced secondary public offering of 6.8 mln shares of common stock by selling stockholder at $16 per share) 

(BN) Reynolds Confronting Antitrust Concerns Over Lorillard Merger


Reynolds Confronting Antitrust Concerns Over Lorillard Merger
2015-03-31 21:01:54.201 GMT


By David McLaughlin and Duane D. Stanford
(Bloomberg) -- Reynolds American Inc. is meeting with top
antitrust officials to overcome some regulatory opposition to
its proposed acquisition of rival cigarette maker Lorillard
Inc., according to people familiar with the matter.
Within the Federal Trade Commission, some staff members say
competition will be hurt if Reynolds, the maker of Camel
cigarettes, proceeds with the $25 billion merger, one of the
people said. The tie-up of the No. 2 and No. 3 tobacco companies
would lead to a market where two companies control more than 80
percent of sales.
The companies have proposed selling some brands to Imperial
Tobacco Group Plc to resolve antitrust concerns.
Company representatives are pressing that solution in
meetings this week with the FTC’s commissioners, who have the
final say on whether to sue to block a merger on antitrust
grounds. It’s unclear whether the staff has already made a
recommendation to the commission and whether they want more
divestitures.
“Meetings between the companies and the commissioners
indicate there are unresolved issues with the deal but don’t
necessarily mean agency staff have recommended challenging the
transaction,” said Darren Tucker, an antitrust lawyer at Morgan
Lewis & Bockius LLP who is following the deal but isn’t involved
in the transaction.
Spokesmen for Reynolds, Lorillard, Imperial Tobacco and the
FTC declined to comment.

Bolster Competition

Reynolds has an agreement to sell Kool, Salem, Winston, and
blu eCigs brands to Imperial for $7.1 billion in a move to
increase Imperial’s market share in the U.S. to 10 percent from
2.5 percent.
The tobacco industry has struggled with falling demand
spurred by higher taxes, marketing reductions and aggressive
anti-smoking campaigns after a $206 billion legal settlement
with 46 states in 1998 over health costs.
The purchase of Greensboro, North Carolina-based Lorillard,
would help Reynolds compete with U.S. market leader Altria Group
Inc. Reynolds would gain the Newport menthol line, which is
popular in urban areas.
Reynolds, based in Winston Salem, North Carolina, has
agreed to pay cash and stock valuing Lorillard at $68.88 a
share. British American Tobacco Plc plans to fund $4.7 billion
of the transaction, maintaining a 42 percent stake in Reynolds.
The combined company would account for almost 33 percent of
domestic sales. Together, Reynolds and Altria would sell eight
out of every 10 cigarettes in the country.

For Related News and Information:
Reynolds Buying Lorillard for $25 Billion to Revamp Industry
Reynolds-Lorillard Deal Faces Additional Antitrust Scrutiny
Top Stories: TOP<GO>
Top Legal Stories: TLAW<GO>
Top Washington News: WDC <GO>

To contact the reporters on this story:
David McLaughlin in Washington at +1-202-654-7354 or
dmclaughlin9@bloomberg.net;
Duane D. Stanford in Atlanta at +1-404-507-1307 or
dstanford2@bloomberg.net
To contact the editors responsible for this story:
Sara Forden at +1-202-624-1915 or
sforden@bloomberg.net
Nick Turner

>>> US Close Dow-1,11% S&P-0,88% Nasdaq-0,94% Russell-0,40%

Closing Market Summary: Stocks Slide to End First Quarter

The stock market extended its March decline on Tuesday, but was able to end the first quarter in the green. The S&P 500 (-0.9%) lost 1.7% for the month, but added 0.4% during the first quarter. The tech-heavy Nasdaq (-0.9%) outperformed, losing 1.3% in March to narrow its Q1 gain to 3.5%. For its part, the Dow Jones Industrial Average (-1.1%) lost 2.0% in March and shed 0.3% in Q1.

Equity indices started the day amid broad pressure while the Dollar Index (98.31, +0.33) added to yesterday's gain. The S&P 500 tried climbing off its opening low, but daylong weakness among heavily-weighted sectors like health care (-1.5%), industrials (-1.0%), and energy (-0.9%) prevented the index from turning positive. On the flip side, the consumer discretionary sector (-0.5%) held a modest gain into the afternoon, but slipped into the red during the final hour.

Still, the discretionary sector ended ahead of its peers with homebuilders contributing to the relative strength after DR Horton (DHI 28.48, +0.47) was upgraded to ‘Positive' from ‘Neutral' at Susquehanna. Shares of DHI gained 1.7% while the iShares Dow Jones US Home Construction ETF (ITB 28.23, -0.03) surrendered its gain ahead of the close. Similarly, apparel and luxury retailers outperformed with Movado (MOV 28.49, +2.86) jumping 11.2% in reaction to better than expected results.

Elsewhere among cyclical sectors, industrials (-1.0%) were pressured by large cap names like Boeing (BA 150.08, -2.62) and General Electric (GE 24.81, -0.31) while the energy sector (-0.9%) lagged amid weakness in crude oil. WTI crude fell 1.9% to $47.72/bbl and locked in a 12.7% decline for the quarter. For its part, the energy sector lost 3.6% in Q1.

Once again, dollar strength was a headwind for oil as the Dollar Index added 0.3% for the day and ended the month higher by 2.7%. Furthermore, the index spiked more than 8.0% during the first quarter.

Nine of ten sectors ended the month in negative territory while health care (-1.5%) gained 0.8% in March. Biotechnology helped the sector end the month ahead of its peers, but the group contributed to today's underperformance. The iShares Nasdaq Biotechnology ETF (IBB 343.48, -7.84) lost 2.2%, but still added 1.8% in March.

Treasuries posted slim gains after a slow daylong climb. The 10-yr yield slipped two basis points to 1.93%. For the month, the benchmark yield fell seven basis points from 2.00%.

Today's participation was better than average with roughly 950 million shares changing hands at the NYSE floor.

Economic data included Chicago PMI, Consumer Confidence, and Case-Shiller 20-City Index:
  • The Conference Board's Consumer Confidence Index increased to 101.3 in March from an upwardly revised 98.8 (from 96.4) while the consensus expected the reading to hold at 96.4 
    • Labor market improvements catalyzed the increase in confidence as initial claims levels returned to their sub-300,000 trend over the past couple of weeks 
  • The Chicago PMI increased to 46.3 in March from 45.8 in February while the consensus expected an increase to 52.0 
    • Chicago PMI fell from 59.4 to 45.8 in February, which was immediately blamed on extreme weather conditions. As weather conditions returned to normal in March, manufacturing activities were expected to return to their previous expansionary cycle, but that did not happen 
    • Conditions did improve modestly, but the overall index remained firmly in contraction for a second consecutive month, meaning the pullback that began in February was likely not the result of temporary weather problems 
  • The Case-Shiller 20-city Home Price Index for January rose 4.6%, which is what the consensus expected 
    • The previous month's increase was revised to 4.4% from 4.5% 
Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the ADP Employment report for March (consensus 225K) will cross the wires at 8:15 ET. The day's data will be topped off with the 10:00 ET release of the March ISM Index (consensus 52.5) and the Construction Spending report for February (expected -0.3%).
  • Nasdaq Composite +3.5% YTD 
  • Russell 2000 +4.0% YTD 
  • S&P 500 +0.4% YTD 
  • Dow Jones Industrial Average -0.3% YTD

(BFW) Video Found From Germanwings Flight Shows Chaotic Scene: Bild


Video Found From Germanwings Flight Shows Chaotic Scene: Bild
2015-03-31 18:51:17.911 GMT


By James Kraus
(Bloomberg) -- Video seen by Bild and Paris Match magazine
from Germanwings Flight 4U9525 documents last several seconds of
scene in cabin before aircraft’s crash and constitutes an
important piece of evidence, Bild reports.
* Recording from back of plane shows blurred, chaotic scene on
board, no individuals identifiable
* Not known if passenger or member of crew recorded scene
* Video supports statement of French prosecutor Brice Robin
* Screams heard on video, including cries of “My God,” in
several languages, showing passengers knew the desperate
situation they were in
* Can hear at least three times metallic smashing, apparently
pilot trying to break open cockpit door with either an ax or
other metal object
* End of video seems to be at moment plane touched a mountain,
with the cabin thrown to one side, screams of people
* NOTE: Unlikely that a smartphone can survive a crash; memory
card in it, however, can be very durable. Even if a mobile
phone is broken into a thousand pieces, the memory can still
survive, for example, if the device has cushioned the
impact; Bild, citing mobile phone tester Dirk Lorenz (43) of
“Stiftung Warentest”
* NOTE: Earlier, Germanwings Co-Pilot Told Airline in 2009 He
Had Depression



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

To contact the reporter on this story:
James Kraus in Geneva at +41-22-317-9232 or
jkraus2@bloomberg.net
To contact the editors responsible for this story:
Mariajose Vera at +49-89-244478-803 or
mvera1@bloomberg.net
James Kraus, Rainer Buergin

(BFW) EU Draft Would Allow Banks’ Proprietary Trading: Handelsblatt


EU Draft Would Allow Banks’ Proprietary Trading: Handelsblatt
2015-03-31 19:23:26.186 GMT


By Rainer Buergin
(Bloomberg) -- EU presidency proposes requiring banks to
separate proprietary trading from remaining businesses,
Handelsblatt reports, citing draft document.
* Proposal replaced “ban” on proprietary trading in earlier
version with “obligation to separate”
* Market-making, management of liquidity risk and foreign
exchange positions as well as clearing of derivatives
transactions don’t fall under definition of proprietary
trading
* Changes reflect presidency’s acceptance of U.K., French and
German resistance to tougher rules
* In a concession to banks, the proposal also says supervisory
authorities can take “measures to reduce excessive risks”
and have the “right,” not the obligation, to “separate
certain trading activities” that are risky
* NOTE: Proprietary Trading Ban Gains Traction in EU Lawmaker
Talks


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

To contact the reporter on this story:
Rainer Buergin in Berlin at +49-30-70010-6228 or
rbuergin1@bloomberg.net
To contact the editor responsible for this story:
Alan Crawford at +49-30-70010-6237 or
acrawford6@bloomberg.net

(MAKOR): SABADELL oversubscription RIGHT ARBITRAGE -PDF




Sabadell (SAB SM) for TSB Banking (TSB LN)

Sabadell oversubscription right arbitrage (SAB/D SM)

PDF attached

28 March, Sabadell launched their capital raising exercise to part fund the TSB acquisition.

 

Eur1.6 billion capital increase underwritten by Goldman Sachs to maintain Common Equity Tier 1 capital ratio

 

The TSB offer is not conditional on the Rights Issue. Sabadell is issuing new shares at Eur1.48 per share in a proportion of 3 new shares for each 11 old ones

There is an interesting new feature with regards to the over subscription rights however which have an impact on the potential over subscription right arbitrage. 

 

The Sabadell over subscription mechanics are:

 

1-        The shares not taken up by the subscription of the rights will be allocated proportionally to shareholders who fully executed their rights and investors who bought rights in the market and fully executed them

2-         The additional shares will be distributed proportionally among them prorated according to the % of the new shares acquired during the subscription period over the new shares issued.

 

Sabadell is changing the way Spanish oversubscription mechanics normally work. Full details are in their rights document Page 35 paragraph 5.1.33 (a).

 

They are trying to avoid a case where an investor who only acquired 1 share during the subscription period could ask for 100,000 shares and an investor who acquired 100 shares and asked for 1,000 extra shares did not get all of them because the investor who asked for 100,000 shares pushed him out.

 

Our calculations indicate that at present, the oversubscription arbitrage pays off only if we receive a minimum of 8% oversubscription allocation, which looks high in our view.

Under the Sabadell way of pro-rating oversubscription requests (which is not the way Spanish rights normally work), we believe there is a larger probability of receiving a fairer allocation but experience shows that an oversubscription allocation north of c4% may be hard to get

www. makor-capital.com

This message has been sent by Makor Securities London Ltd which is authorised and regulated by the FCA (625054). This message is for professional clients and eligible counterparties only, not intended for "retail clients".  The information contained in this message is confidential and is for the exclusive use of the intended recipient. If you receive this message in error please inform us and delete all copies of it. The information is not intended as an offer or solicitation to buy or sell any financial instrument. All comments and statements are to be considered the opinions of the author not the Company and are not intended to be relied upon. We cannot guarantee that this message or any attachments are virus free and accept no liability for any viruses or the consequences thereof.

 

(BFW) Randgold Said to Be Rebuffed in Approach for Kinross Gold Mine

Randgold Said to Be Rebuffed in Approach for Kinross Gold Mine
2015-03-31 15:17:04.232 GMT


By Thomas Biesheuvel and Liezel Hill
(Bloomberg) -- Randgold Resources was rebuffed by Kinross
after making approach to acquire K CN’s mine in Mauritania,
person familiar told Bloomberg.
* Randgold isn’t currently in active talks with K CN, still
interested in Tasiast project
* Spokesmen for both cos. declined to comment
Story


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

To contact the reporters on this story:
Thomas Biesheuvel in London at +44-20-3525-3259 or
tbiesheuvel@bloomberg.net;
Liezel Hill in Toronto at +1-416-203-5727 or
lhill30@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Divya Balji