(BFW) Telecom Italia Offered Majority in Broadband Network: Repubblica

Telecom Italia Offered Majority in Broadband Network: Repubblica
2015-03-11 07:36:28.681 GMT


By Francesca Cinelli
(Bloomberg) -- Telecom Italia may have minority stake in
new fiber network with right to get majority at second stage,
Franco Bassanini, chairman of Italian state lender Cassa
Depositi e Prestiti, says in intw with la Repubblica.
* Telecom Italia may be given majority after completion of
investment plan being set up by govt and aimed at expanding
high-speed fiber-optic networks in Italy
* NOTE: Italy Approves $6.7b Plan For Ultra-Fast Broadband
Grids Link
* NOTE: Italy govt approved plan to encourage phone carriers
to boost high-speed networks in the country

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(Nomura) Telecom ringing in gains – what next?

Outperformance likely unsustainable despite improved backdrop

Telecom operating conditions improving
* Bid activity in the telecom/cable sector has heated up markedly. The hope is that consolidation in the sector will continue, reducing competition and supports pricing power.
* Regulation-related headwinds are abating.
* 4G adoption is driving data volume growth higher.

Deflation in the telecom service sector has become ‘less bad’
This improved backdrop has buoyed performance and boosted sector earnings expectations relative to the overall market.

Notwithstanding the above, it is not a good time to add to positions
We recommend underweight positions in telecom services in European equity portfolios, for four key reasons:
1) Richly valued
The telecom service sector trades at a 26% premium to the market on expected 12-month forward EPS, a post-TMT-bubble high. The dividend yield premium over the broad market has declined sharply, and free cash flow
dividend coverage has dropped to a post-TMT-bubble low.
2) Hunt for yield to remain – but not intensify 
Although the sector still provides a bigger dividend yield than the overall market, we doubt that investors will seek to chase this yield further in the absence of a new move lower in bond yields.
3) Uncertainty around return on investment
A key question for the sector is whether investment in services such as 4G and fibre broadband will provide an adequate return. Crucial will be the ability for the wave of consolidation in the sector to continue, which sees price
competition ease. We think this is an open question.
4) An underperformer in an improving growth backdrop
Economic momentum in Europe has picked up. Telecom service stocks have relatively low leverage to this improvement.

>>> Symrise to make acquisitions as part of growth plans this year~

Symrise to make acquisitions as part of growth plans this year~

Symrise, the listed German aroma producer, plans to continue growing faster than the market this year, with acquisitions likely to form part of this growth, Boersen-Zeitung reported.

The German-language daily cited Chief Executive Heinz-Juergen Bertram as saying that acquisitions will only be sought in fields of activity the company is already familiar with.

He said the financial resources available for acquisitions in the present business year are about EUR 500m.

By 2020, Symrise aims to boost the proportion of its sales coming from emerging markets from the present 47% to more than 50%.

Boersen-Zeitung

>>> Holcim/Lafarge: BofA calls for special dividend of CHF 5 to CHF 10 per share

Holcim/Lafarge: BofA calls for special dividend of CHF 5 to CHF 10 per share

Holcim, the listed Swiss cement group, could pay a special dividend of up to CHF 10 per share as a sweetener to shareholders to approve the planned merger with Lafarge, Finanz und Wirtschaft reported. The Swiss bi-weekly said Bank of America has called for a special dividend of CHF 5 to CHF 10 per share. The report said Swiss bank UBS agrees with this range.

Source Finanz und Wirtschaft

>>> What to look at today - 11th of March 2015

Dow-1,85% S&P-1,70% Nasdaq-1,67% Russell-1,24% VIX 16.69 (+10.82%)
US MArket closed lower, breaking its 50d MA, in negative territory YTD, USD slide pushed mkt lower, this move fueled concerns about the earnings prospects of multinational companies while also putting pressure on overseas entities that conduct their dealings in dollars. As a result, a wave of recent downward earnings revisions has lowered 2015 EPS growth expectations to just 1.1% from 9.8% on December 1, according to S&P Capital IQ...Less prospects for solid earnings growth broadsided the six growth-sensitive sectors while countercyclical groups did not fare much better. Sellers remained in control throughout the day with the two largest sectors by weight—technology (-2.2%) and financials (-2.1%)—pacing the retreat...URBN +11.5% on better numbers...Crude oil lost 3.1% to $48.40...Volume were ahead of recent average @ 830mil shares...US After Hours SURG +7.1%, CVTI +6.8%, SINA +2.2%, ZGNX -8.4%, HABT -8.0%, ERA -6.7% following earnings/guidance...MELA +39.4% on good news from CPT Panel, NATH +4.8% on special cash dvd...Asian markets started to track US Market but bouncing back now...On Japan's 4-year anniversary of the Fukushima disaster, BOJ's Shirai saw higher uncertainty over timing to achieve 2% inflation target, adding a delay is possible even though Japan economy is in better shape than before the start of policy easing. Shirai added a temporary reduction of Japan core CPI growth is acceptable, since it will likely surge once the decline in crude oil prices begin to stall as early as H2 of FY15. In economic data, Japan machine orders data continued to outperform, while wholesale inflation was still anemic and in line with consensus.

Nikkei +0.31% Hang Seng -0.71% Shanghai -0.20%

RUB $62.11 WTI $48.96 Brent $56.78 EURCHF 1.0680 CHF 0.9991

EUR$ 1.0693 S&P +0.24% EuroStoxx +0.14% Dax +0.14% SMI +0.05%

Macro :
- China Jan.-Feb. Industrial Output Rises 6.8% Y/y; Est. 7.7%


Keep an eye on :
- ADP FP : ADP to Sell Paris Head Office for EU40M-EU50M, Echos Says
- ADEN VX : Adecco 2014 Net, Dividend Beat; Rev in Line; Knightsbridge M&A
- AIR FP : Airbus Favored to Join 4t Won Korea Helicopter Project: Chosun
- ATL IM : Atlantia Raises EU227.9m in ABB Sale of 1.18% of Capital
- ATRS AV : Atrium Posts 2014 Loss EU57.7m on Russian Writedowns
- BAYN GY : Bayer: Optimistic for Future, HealthCare Unit Outlook Positive
- BC IM : Cucinelli 2014 Ebitda, Net In Line With Ests.
- CNE LN : Cairn Energy Disputes Indian Taxation of Some Transactions
- CLASB SS : Clas Ohlson 3Q Profit Slightly Above Est.; Feb. Sales Rise 9%
- DPW GY : Deutsche Post 4Q Profit Misses Est, Rev. Beats
- EDF FP : French National Assembly, Senate Fail to Agree on Energy Law
- EOAN GY : EON Posts 2014 Net Loss, Says Cost Cuts Achieved a Year Early
- FCA IM : Fiat Chrysler CEO Marchionne Sells 1.44m Shrs, Cuts Stake to 13m
- FUR NA : Fugro Investor Boskalis Demands Vote on Protective Measure
- GSK LN : GSK to Open New Asian Headquarters in Singapore in 2017
- HMB SS : H&M Cut to Sell at UBS on Resurfacing Gross Margin Worries
- EGL PL : Mota-Engil 2014 Turnover Reached EU2.4b; Order Book EU4.4b
- DEC FP : Decaux Family Selling 5.4% Stake in JCDecaux
- LOGN SW : Logitech Sees FY 2015 Sales of $2.1b; 2016 Sales of $2.15b
- MMB FP : Lagardere Seeks 2015 Operating Profit Growth of About 5%: Echos
- MUV2 GY : Munich Re Aims for EU2.5b-EU3b 2015 Profit After EU3.2b in 2014
- REP SM : Repsol’s Brufau to Give Up Executive Powers, Expansion Reports
- RBREW DC : Royal Unibrew to Buy Back DKK350m of Own Shrs
- SAND SS : Sandvik CEO Says Demand Situation Is Stable: Dagens Industri
- VIV FP : Spotify to Spend $1b to Renew Universal Music Licensing Deal:NYP

>>> Brokers Upgrades & Downgrades - 11th of March 2015

>>> Up
*CREDIT SUISSE RAISED TO OVERWEIGHT VS UNDERWEIGHT AT JPMORGAN
*DOMINO’S PIZZA RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*REMY COINTREAU RAISED TO BUY VS NEUTRAL AT GOLDMAN, PT EU70

>>> Down
*ANDRITZ CUT TO HOLD VS BUY AT BERENBERG
*AXEL SPRINGER CUT TO SELL VS HOLD AT BERENBERG
*BRITISH LAND CO. CUT TO NEUTRAL AT HSBC
*CAIRN ENERGY CUT TO HOLD VS BUY AT JEFFERIES
*H&M CUT TO SELL VS BUY AT UBS
*INTU PROPERTIES CUT TO NEUTRAL AT HSBC
*RAIFFEISEN CUT TO NEUTRAL VS OVERWEIGHT AT HSBC
*RESTAURANT GROUP CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*SECHE ENVIRONNEMENT CUT TO HOLD VS BUY AT SOCGEN
*THOMAS COOK CUT TO NEUTRAL VS BUY AT CITI

>>> PT Change


>>> Initiation
*DX GROUP RATED NEW BUY AT CANTOR FITZGERALD, PT 110P
*INFINEON RATED NEW BUY AT DREXEL HAMILTON, PT $15
*TELE COLUMBUS RATED NEW OVERWEIGHT AT JPMORGAN, PT EU16

>>> Call
>> Stock
*ALLIANZ, INTESA REMOVED FROM CITI FOCUS LIST EUROPE
*AEGON ADDED TO CITI FOCUS LIST EUROPE; STAYS BUY
*STANDARD CHARTERED, SHIRE ADDED TO CITI FOCUS LIST EUROPE

(BFW) SHV Declares Its Nutreco Takeover Offer Unconditional

ONE 03/11 06:00 Nutreco: SHV declares offer for Nutreco unconditional; 96.15% of all Shares committed
BN 03/11 06:00 *NUTRECO: SHV DECLARES OFFER FOR NUTRECO UNCONDITIONAL
BN 03/11 06:00 *NUTRECO: SHV DECLARES OFFER FOR NUTRECO UNCONDITIONAL; 96.15%
SHV Declares Its Nutreco Takeover Offer Unconditional
2015-03-11 06:52:13.353 GMT


By Jurjen van de Pol
(Bloomberg) -- Settlement on March 16, remaining shrs can
be tendered until March 25.

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NY Post: Spotify to spend $1B on renewal deal with Universal Music

Spotify believes Universal Music Group has a billion reasons to renew its song-licensing deal.
The streaming music service expects to pay Universal, the No. 1 record label in the world, $1 billion over the next two years to cover music royalties, ad revenue and subscription fees, according to Spotify projections of its growth rate and Universal’s market share, contained in an internal e-mail, a copy of which was obtained by The Post.
The $1 billion number — equal to the global revenue generated by all companies in the fast-growing streaming sector in 2013 — underscores the extent to which Spotify and other streaming services will drive digital revenue for the world’s biggest record company.
Spotify’s payments to Universal, home to Taylor Swift, Nick Jonas and Madonna, are projected to account for 16 percent of the music giant’s recorded music revenue by March 2017 — up from 11 percent for the April 2015 to March 2016 period.
In addition, Universal, which owns a stake in Spotify, will get 39 percent of its pretax earnings from Spotify by 2017, up from 28 percent over the next 12 months, according to the e-mail, which factored in Spotify estimates for Universal’s growth.
The Spotify e-mail is the latest salvo in a simmering war between the two companies and their differing views on the economic viability of free music streaming.
Last November, Swift pulled all her music from Spotify, claiming the streamer didn’t properly value her work.
Meanwhile, Universal CEO Lucian Grainge and Spotify founder Daniel Ek are in the midst of heated talks aimed at hammering out a new licensing deal.
So far, Grainge has been highly vocal that the “freemium” business model, or free ad-supported streaming, should be vastly curtailed.
Universal brass were surprised at Spotify’s $1 billion claim — the real value of Spotify’s payments are much lower, sources said.
Spotify has 60 million active users — including 15 million paying subscribers — making it the largest streamer in the world.
“Ad-funded on-demand is not going to sustain the entire ecosystem of the creators as well as investors,” Grainge noted at a Code Conference.
Ek argued after Swift’s actions that Spotify does pay artists when their songs are streamed for free.
Ek fears Universal Music is working closely with former employee Jimmy Iovine, now at Apple, to put Spotify under intense pressure, sources said.
Iovine is in charge of Apple’s expected June launch of its own subscription streaming service that, like Spotify, will cost $10 a month.
Apple’s service won’t have a free tier, other than promotional teasers.
Reps for both companies declined comment.
FILED UNDER SPOTIFY , UNIVERSAL MUSIC GROUP
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(BFW) Asian Top Buys, Sells Listed by JPMorgan


Asian Top Buys, Sells Listed by JPMorgan
2015-03-11 05:15:21.155 GMT


By Jan Dahinten
(Bloomberg) -- Top overweight, underweight stocks by
country and industry listed by JPMorgan analysts Sunil Garg,
James Sullivan, Adrian Mowat and Tony Lee in noted dated yday.
* Forecast MSCI Asia Pacific ex-Japan Index at 525 at
end-2015, suggesting ~11% upside
* Overweight India, Thailand, Indonesia, Philippines in
Asia ex-Japan; underweight Australia, Malaysia, Hong
Kong, Singapore
* Overweight India, Thailand, Indonesia, Philippines in
Asia ex-Japan; underweight Australia, Malaysia, Hong
Kong, Singapore</li></ul>
* Country:
* China: overweight China Communications Construction,
underweight Guangzhou Automobile
* Hong Kong: AIA Group, SJM Holdings
* India: ICICI Bank, Hero MotoCorp
* Indonesia: United Tractors, PT Ace Hardware Indonesia
* Malaysia: Tenaga, Petronas Chemicals
* Philippines: SM Prime, Globe Telecom
* Singapore: Sheng Siong, Genting Singapore
* South Korea: Samsung SDI, Daelim Industrial
* Taiwan: TSMC, Formosa Chemicals and Fibre
* Thailand: CP All, TMB Bank
* Thailand: CP All, TMB Bank</li></ul>
* Sectors:
* Autos: overweight Geely Automobile, underweight Daihatsu
Motor
* Basic Materials: Anhui Conch, China Coal Energy
* Consumer: Hengan Intl Group, Want Want China
* Financials: Bank of China, AMMB Holdings
* Healthcare Sinopharm, Ansell
* Infrastructure & Industrials: Beijing Capital Intl
Airport, Daelim Industrial
* Oil & Gas: Inpex, PTT Exploration & Production
* Property: Cheung Kong, Quality Houses
* SMID: Skyworth Digital, Wowprime
* Technology: Samsung Electronics, Sharp
* Telecommunications & Media: Bharti Infratel, Maxis
* Transportation: Air China, Yamato
* Utilities & Power Equipment: China Gas, Huaneng Power
* Utilities & Power Equipment: China Gas, Huaneng Power</li></ul>


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>>> Asiam Update

Asian Mid-session Update: Markets mixed ahead of China Industrial and Retail data

***Economic Data***
- (JP) JAPAN JAN MACHINE ORDERS M/M: -1.7% V -4.0%E; Y/Y: 1.9% V -1.0%E
- (JP) JAPAN FEB CGPI (PPI) M/M: 0.0% V 0.0%E; Y/Y: 0.5% V 0.5%E
- (AU) AUSTRALIA MAR WESTPAC CONSUMER CONFIDENCE INDEX: 99.5 V 100.7 PRIOR; M/M: -1.2% V +8.0% PRIOR (1st decline in 3 months)
- (AU) AUSTRALIA JAN HOME LOANS M/M: -3.5% V -2.0%E (largest decline in 17 months)
- (KR) South Korea Feb Bank Lending to Households (KRW): 522.9T v 519.5T prior

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +0.5%, S&P/ASX -0.5%, Kospi -0.3%, Shanghai Composite +0.7%, Hang Seng -0.3%, Mar S&P500 +0.2% at 2,048

***Commodities/Fixed Income***
- Apr gold +0.2% at $1,163/oz, Apr crude oil +0.3% at $48.92/brl, May Copper +0.4% at $2.63/lb.
- (US) API PETROLEUM INVENTORIES: CRUDE: -0.4M (first draw in 2 months) v +5Me, GASOLINE: +1.7M v -1.5Me, DISTILLATE: +1.7M v -2.5Me
- (AU) Australia MoF (AOFM) sells A$700M in 3.25% bonds due 2025; Avg yield: 2.5889%; Bid-to-cover: 3.57x
- (JP) BOJ offers to buy ¥50B in JGBs with maturity less than 1-yr, ¥240B in 10-25yr JGBs and ¥140B in JGBs with maturity over 25-yr
- USD/CNY: PBoC sets yuan mid point at 6.1597 v 6.1572 prior setting (weakest Yuan setting since Nov 7th)

***Market Focal Points/FX***
- Asia equity indices tracked the outsized Wall St selloff with lower opening prints but have since turned mixed heading into the afternoon session. S&P500 futures are also up about 6pts in electronic trade, paring a 20-pt drop in US hours amid continued worries over stronger US dollar pressuring earnings and Fed rate hike expectations stoking volatility. April WTI tested above $49/brl after a surprise draw in API petroleum inventories going into Wednesday's DOE release. In FX majors, EUR/USD traded in a 40pip range below $1.0720, USD/JPY pared initial slide below ¥120.90 to test ¥121.40, while AUD and NZD hit multi-week lows against the greenback below $0.76 and $0.7240 respectively.

- Economic calendar focus is concentrated around the late-session release of China YTD industrial production, retail sales, and fixed investment data expected at 01:30ET. Australia put out a bigger than expected drop in January home loans, and Westpac Consumer Confidence for March was also a disappointment as optimism after the February rate hike started to wear off. RBA Asst Gov Kent said that despite the latest decline, AUD remains relatively high given the state of economy, but that low rates will translate into stronger activity in housing. Ahead of employment data tomorrow, Kent also said unemployment would rise for a bit longer and peak higher. Also on tap for tomorrow, RBNZ is expected to announce a hold in policy rates, and NZIER shadow board sees an over 60% chance of no action, noting surging housing prices and solid fundamentals are balanced by all-time lows of inflation expectations.

- On Japan's 4-year anniversary of the Fukushima disaster, BOJ's Shirai saw higher uncertainty over timing to achieve 2% inflation target, adding a delay is possible even though Japan economy is in better shape than before the start of policy easing. Shirai added a temporary reduction of Japan core CPI growth is acceptable, since it will likely surge once the decline in crude oil prices begin to stall as early as H2 of FY15. In economic data, Japan machine orders data continued to outperform, while wholesale inflation was still anemic and in line with consensus.

***Equities***
US markets:
- FCEL: Reports Q1 -$0.02 v -$0.03e, R$41.7M v $48.0Me; +7.0% afterhours
- SINA: Reports Q4 $0.24 v $0.21e, R$211M v $211Me; +2.2% afterhours
- PAY: Reports Q1 $0.44 v $0.41e, R$486.9M v $483Me; +1.9% afterhours
- GIS: Raises dividend 7% to $0.44 from $0.41 (indicated yield 3.4%); +0.7% afterhours
- GCA: Reports Q4 $0.23 v $0.23e, R$152.1M v $142Me; +0.4% afterhours
- T: Discloses update on Q1 trends and FY15 guidance; "reiterated full-year 2015 standalone guidance" - filing; +0.1% afterhours
- GOOGL: CFO plans to retire; date not set, to stay for 6 month transition period - filing; -0.2% afterhours
- CNXR: Reports Q4 $0.30 v $0.06e, R$27.8M v $24.8Me; -3.1% afterhours
- SXL: Files to sell 13.5M Common Units (5.9% of units outstanding); -4.4% afterhours
- WB: Reports Q4 $0.04 v $0.04e, R$105.2M v $104Me; Announces change in CFO; -5.8% afterhours
- ZGNX: Sells Zohydro ER Business to Pernix for $100M at Closing Plus Potential Milestones of $283.5M; -9.6% afterhours

Notable movers by sector:
- Consumer Discretionary: Dr Ci:Labo 4924.JP +2.8% (H1 results); FamilyMart 8028.JP -6.5% (merger talks with Uny Group); Clarion Co 6796.JP -5.5% (FY14/15 guidance); 361 Degrees International 1361.HK -2.6% (FY14 results); Hydoo International Holding 1396.HK -5.2% (FY14 guidance)
- Financials: Ardent Leisure Group AAD.AU -19.6% (appoints new CEO); China Galaxy Securities 6881.HK +2.4% (Feb op results)
- Energy: Xinyi Solar 968.HK -6.8% (to sell shares)