(BFW) *SÜDZUCKER SEES EARNINGS SLIDE TO CONTINUE, CUTS DIV

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BFW 05/21 08:01 *SÜDZUCKER SEES EARNINGS SLIDE TO CONTINUE, CUTS DIV
BN 05/21 08:01 *SÜDZUCKER SEES EARNINGS SLIDE TO CONTINUE, CUTS DIV
Suedzucker AG: Südzucker expects earnings slide to continue and cuts dividend
2015-05-21 08:00:37.565 GMT

http://www.suedzucker.de/en/Presse/Aktuelle_Meldungen/Archiv_2015/2015/IR-21_05_2015/

PageExcerpt:
Südzucker AG Financial press Dr. Dominik Risser Maximilianstraße 10 68165 Mannheim Tel.: +49 621 421-205 Fax: +49 621 421-425 public.relations@suedzucker.de Investor Relations Nikolai Baltruschat Maximilianstraße 10 68165 Mannheim Tel.: +49 621 ...

(BFW) Altice’s Suddenlink Deal to Raise Cable Valuations, Analysts Say

Altice’s Suddenlink Deal to Raise Cable Valuations, Analysts Say
2015-05-21 07:31:56.884 GMT


By Kasper Viita
(Bloomberg) -- Altice’s acquisition of Suddenlink signals
that U.S. cable M&A is “far from over,” Raymond James says in
note.
* Deal price is likely to keep cable valuations higher, may
challenge Charter’s ability to acquire Time Warner Cable if
Altice is interested as well
* Suddenlink is already well-run, “skeptical” of Altice’s
ability to drive significantly higher Ebitda margins
* U.S. rural markets are price sensitive, may be more
challenging for cost-cutting than Altice believes
* U.S. rural markets are price sensitive, may be more
challenging for cost-cutting than Altice believes</li></ul>
* Goldman (conviction buy on Altice) says Suddenlink deal has
“strong industrial rationale”
* Altice’s ability to create value via its turnaround
capabilities is underestimated
* High US programming costs make restructuring harder than
in Europe, co.’s track record merits benefit of the
doubt
* PT raised to EU160 from EU135 on potential accretion
from deal, scope for further M&A
* PT raised to EU160 from EU135 on potential accretion
from deal, scope for further M&A</li></ul>
* NOTE: Altice agreed to buy U.S. cable operator Suddenlink
yday in $9.1b transaction, Cablevision jumped 17% on
speculation Altice deal will spur sale
* NOTE: Time Warner Cable said to get takeover approach from
Altice

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To contact the reporter on this story:
Kasper Viita in London at +44-203-525-9219 or
kviita1@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
James Cone

(GS) Global Opp. Asset Locator : downgrade commodities & credit

>>> Cross-asset risk premia & yields; downgrade commodities & credit

Risky assets are likely to digest higher yields eventually
Recent increases in yields have led to drawdowns in some equity markets.
After the intense search for yield drove down required returns across
assets, they are getting upward pressure from higher yields. We expect
yields to increase further towards the end of the year. Risky assets should
be able to digest higher yields as risk premia fall. But, if rates increase
without a pick-up in growth, such a ‘rate shock’ can drive drawdowns
across assets. This has resulted in a negative bond yield/equity correlation,
similar to during the ‘taper tantrum’ period. We think a pick-up in growth
will lower risk premia and, in turn, stabilise valuations.

Equity drawdown risk remains; credit sentiment linked to oil
Until US growth picks up, equity drawdown risk still appears elevated in
the near term. Also, there are increased risks from Greece during the
summer. We think equity puts are attractive. To minimise negative carry,
we recommend EURO STOXX 50 puts at least partially financed by S&P
500 puts. For credit, we think the carry-friendly environment will stay, but
we see risks to credit sentiment from a lower oil price. In addition, rate
volatility might spill over to credit spreads – US HY puts appear attractive

OW equities, UW bonds; downgrade commodities and credit
We remain Overweight equities but continue to recommend selective
hedging strategies, owing to elevated drawdown risk. We also remain
Underweight government bonds, and our fixed-income team upgraded its
bond yield forecasts. We downgrade credit to Neutral on a 3-month basis,
as spreads should narrow and yields increase more gradually; we stay
Underweight on a 12-month horizon. Also, US HY credit sentiment might
suffer from a lower oil price near term. We downgrade commodities to
Underweight on a 12-month basis and stay Underweight on a 3-month.

(BofA-ML) European Equity Strategy - Q1 : Earning Season Review

(Full note attached)

Strength in numbers
By all accounts it was a strong Q1 results season for European stocks. Our
European Quantitative Strategy team’s weekly summaries show that of the 80% of
firms that have reported to date, 58% have beaten earnings expectations – the
strongest number since Q3 ’10 – and the sales beats ratio stands at 64% – its
highest point in more than five years.

Not just the FX and flow show
We show that company fundamentals often outweighed flow from an earnings
perspective (Banks, Oil & Gas) and the leading sales beats were in sectors with the
greatest exposure to the FX tailwinds (Autos, Travel & Leisure). A number of one-off
market-specific events also had a greater than expected impact on the season
(Utilities and Insurance), while the relative strength of the macro environment in end
markets was another defining theme (Retail).

(BofA-ML) European Autos - Exit the Dragon #2 (full note attached)

Taking an in depth look at how EU Autos earn in China
Given recent slower growth in German OEMs in China, we carry out an in-depth
China earnings analysis for the EU OEMs and EU Suppliers and quantify exposure
by company. We reiterate our cautious view on Chinese Mass and Premium
markets (growth, pricing & margins) and companies with high China exposure.


We see German brands continuing to lose share in 2015
China market growth is trending roughly in line with our 7% est for the year, but so
far 2015 has been a great year for local Chinese brands, as they have substantially
outperformed Global JV brands (+29.1% vs +1.1%). We think this can continue as
the consumer looks for lower prices in a tough macro environment and local quality
improves. We forecast only +2% for VW Pass Car in 2015 and +3% for Audi / BMW.

FT : Fed minutes show doubts about strength of US recovery

Fed minutes show doubts about strength of US recovery

Doubts about the strength of the US recovery appeared to grow among Federal Reserve policy makers in their latest rate-setting meeting as soggy economic data further diminished the prospect of a rate rise in the summer.
Minutes from the meeting on April 28-29 reveal a Federal Open Market Committee that was divided over when the central bank’s target range for the federal funds rate should be lifted from today’s near-zero levels. A “range of views” were expressed on the right time for a move.

Whereas a few rate-setters thought June could still be the right time for the first increase, they were outnumbered by those who thought conditions were unlikely to be right by then, following the release of weak economic data early in the year.
Bonds yields crept lower following release of the minutes. The yield on the ten-year Treasury note was down 3 basis points at 2.26 per cent.
The dollar, which has rallied for much of the last year on the prospect of the Fed lifting rates, gave up some of its gains against the euro to trade at $1.11. The S&P 500 closed little changed at 2125.85.
The Fed this year dropped its pledge to be “patient” before raising rates, shifting to a new footing where it can tighten policy as soon as it decides the economic outlook is strong enough to merit a rise.
Earlier in 2015 a move as soon as June seemed a possibility, but the disappointing economic data in the first three months of the year undercut those expectations, with official growth figures revealing an annualised expansion of just 0.2 per cent.
The key question now confronting the central bank is how much of that slowdown reflects anomalous factors such as a port strike and bad weather, and whether a sharp rebound is in the offing.
The minutes to the April policy meeting suggest there were mixed views about this on the FOMC. While a number of reasons were advanced for the slowdown to be temporary, some rate setters backed the concern that the weakness might persist: in particular, the impact of the high level of the dollar and the decline in oil-related investment could last longer than expected.
“Participants judged that recent domestic economic developments had increased uncertainty regarding the economic outlook,” the minutes said.
The FOMC drew attention to the high value of the dollar as a continuing restraint. The strength of the jobs market is central to the Fed’s judgment about the outlook, and many of the policy makers also told the meeting that they thought the pace of improvement in the labour market had slowed. Balancing that, however, were other more positive signs on labour market conditions, including an increase in job openings.
Participants judged that recent domestic economic developments had increased uncertainty regarding the economic outlook
- Fed minutes
With energy prices no longer declining, most participants in the meeting thought inflation would move back towards the committee’s 2 per cent objective.
Discussing the prospects of higher interest rates, the minutes said: “Many participants . . . thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied, although they generally did not rule out this possibility.”
A few members went further, and questioned whether the committee was providing enough monetary accommodation at the present time, as they cautioned against tightening policy in the near term.
A handful of policy makers said there may even be an argument for a discussion over whether to boost the FOMC’s inflation objective — something that has been advocated by Eric Rosengren, the head of the Boston Fed.