>>> Brokers Upgrades & downgrades - 5th of December

>>> Up
*DEBENHAMS RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*DEUTSCHE TELEKOM RAISED TO NEUTRAL VS SELL AT GOLDMAN
*INTERTEK RAISED TO BUY VS NEUTRAL AT UBS
*MEGGITT RAISED TO BUY VS HOLD AT INVESTEC
*TITAN CEMENT RAISED TO NEUTRAL VS SELL AT CITI
*UNITED INTERNET RAISED TO BUY VS NEUTRAL AT GOLDMAN

>>> Down
*ABB CUT TO SELL VS HOLD AT DEUTSCHE BANK
*AMADEUS CUT TO UNDERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*BILFINGER CUT TO UNDERPERFORM AT MAINFIRST
*FIDESSA CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*KUKA CUT TO SELL FROM HOLD AT BANKHAUS LAMPE
*MARSHALLS CUT TO NEUTRAL VS BUY AT CITI
*SCHNEIDER ELECTRIC CUT TO HOLD VS BUY AT DEUTSCHE BANK
*SGS CUT TO NEUTRAL VS BUY AT UBS
*TELKOM SA CUT TO NEUTRAL VS OUTPERFORM AT CREDIT SUISSE

>>> PT Changes
*TECHNIP TAKEOVER TARGET CGG’S PT RAISED TO EU9 VS EU6.5 AT UBS

>>> Initiation
*DRILLISCH RATED NEW BUY AT GOLDMAN, PT EU40
*HERMES RATED NEW BUY AT BERENBERG, PT EU308
*LSE RESUMED AT NEUTRAL AT JPMORGAN; PT 2,330P
*PENNON REINSTATED AT NEUTRAL AT JPMORGAN
*SEVERN TRENT REINSTATED AT OVERWEIGHT AT JPMORGAN
*UNITED UTILITIES REINSTATED AT OVERWEIGHT AT JPMORGAN

>>> Call
>> Stock
*EURASIA DRILLING ADDED TO RUSSIA, CEEMEA FOCUS LIST AT GOLDMAN

(BFW) Bouygues Telecom Needs Structural Change, CEO Says in Tribune


Bouygues Telecom Needs Structural Change, CEO Says in Tribune
2014-12-05 07:05:22.958 GMT


By Tara Patel
Dec. 5 (Bloomberg) -- Bouygues Telecom will have cut jobs
in a core division by year-end to 2,800 from 4,800 to lower
costs by 1 billion euros annually, CEO Olivier Roussat quoted as
saying in Tribune.
* Changes needed to survive with four operators in France: CEO
* 85% mobile phones sold are 4G: CEO
NOTE: Altice Chief Says It’s ‘Natural Buyer’ for Bouygues
Telecom (3) NSN NFE1TB6JIJUV<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:
Tara Patel in Paris at +33-1-5365-5058 or
tpatel2@bloomberg.net

>>> Asian Update

Asian Market Update: Australia construction falls into contraction; Shanghai Composite volatile after hitting 42-month highs


***Economic Data***
- (AU) AUSTRALIA NOV AIG PERFORMANCE OF CONSTRUCTION INDEX: 45.4 V 53.4 PRIOR (1st contraction in 6 months)
- (JP) JAPAN NOV OFFICIAL RESERVE ASSETS: $1.27T V $1.27T PRIOR
- (TW) TAIWAN NOV CPI Y/Y: 0.9% V 1.2%E; WPI Y/Y: -2.7% V -1.5%E
- (PH) PHILIPPINES NOV CPI M/M: -0.1% V +0.1%E; Y/Y: 3.7% V 4.0%E (slowest since Nov 2013); CORE CPI Y/Y: 2.7% V 2.9%E

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.2%, S&P/ASX -1.0%, Kospi flat, Shanghai Composite -0.6%, Hang Seng +0.8%, Dec S&P500 flat at 2,071

***Commodities/Fixed Income***
- Feb gold -0.4% at $1,202, Jan crude oil -0.4% at $66.55/brl, Mar copper flat at $2.91/lb
- CME raises margin requirements on certain FX, metals, and natural gas futures; Silver margins +18.2%; Copper margins +11.5%
- (US) Weekly Fed Balance Sheet Total Assets for week ending Dec 3rd: $4.49T v $4.49T prior; M1 y/y change: 9.8% v 9.8% w/w; M2 y/y change: 5.9% (8-month low) v 6.0% w/w
- (JP) BOJ offers to buy ¥400B in 5-10yr JGB, ¥240B in 10-25yr JGB and ¥160B in JGB with maturity over 25-yr; Offers ¥750B in T-bills
- (AU) Australia MoF (AOFM) sells A$700M in 4.25% 2026 Bonds; avg yield: 3.1408%; bid-to-cover: 2.16x

***Market Focal Points/Key Themes/FX***
- Asian equity markets are mixed after US indices posted very modest losses going into Friday's non-farm payrolls report. Initial disappointment over a non-committal ECB press conference by Pres Draghi has been replaced with anticipation of further signs in employment recovery, and although the ADP report on Wednesday missed expectations, other leading indicators such as the Conference Board online jobs gains are foreshadowing a strong number. USD majors are flat across the board - EUR/USD in a 20pip range below $1.24, USD/JPY in a 30pip range around the psychological ¥120 mark, and AUD/USD in a 20pip band around $0.8380.

- Australia construction index from AiG was the most notable economic datapoint for the session, falling into contractionary territory for the first time in 6 months. Recall the most recent Q3 GDP report earlier this week also identified the Construction sector as a main detractor to GDP growth. AiG remarked the "significant loss of momentum was driven by a renewed decline in activity and new orders in November contributed to a steeper fall in employment", adding apartment building activity also recorded an easing in growth. Slowing inflation in the housing space would remove a key impediment to further RBA easing, just as analysts with Goldman Sachs, DB, and Westpac projected 2 more interest rate cuts to take place in 2015 just this week.

- After posting its biggest gain since Dec 2012 overnight, Shanghai Composite is down marginally in the afternoon session. Trading in A-shares has been volatile in morning hours, rising and then falling by over 2.5%, with financials supported by reports of Haitong Securities looking at a deal for Portugal's Espirito Santo assets. Speculation regarding further easing is also keeping the overall bullish sentiment high, with CASS researcher calling for a RRR cut and UBS forecasting another 40-50bps in interest rate easing by the end of 2015. China focus will turn to economic data for November next week, beginning with the expected release of trade figures on Sunday.

- A late US session report from renown Fed watcher Hilsenrath pointed to a research note from senior Fed economists declaring that the best time to start raising interest rates is right now. The study anticipates fed funds rate reaching 1.4% by the end of 2015, 2.6% in 2016 and 3.5% in 2017 - all of these are within 25bps of the latest median FOMC staff projections for fed funds made with the Sept 17th meeting.

***Equities***
US markets:
- ALSK: GCI to purchase wireless subscriber base from Alaska Communications for $300M; +25.8% afterhours
- ULTA: Reports Q3 $0.91 v $0.83e, R$745.7M v $732Me; +6.5% afterhours
- GPS: Reports Nov SSS +6.0% v -1.7%e; +3.2% afterhours
- NOC: Announces New $3B Share Repurchase Authorization (10.6% of market cap); +1.5% afterhours
- SWHC: Reports Q2 $0.09 v $0.07e, R$108.4M v $105Me; cuts FY15 guidance; -1.3% afterhours
- COO: Reports Q4 $1.95 v $2.03e, R$468M v $478Me; -2.5% afterhours
- FCAU: Files to offer 87M shares - F1/A filing (7.1% of shares outstanding); -3.7% afterhours
- AEO: Reports Q3 $0.22 v $0.22e, R$854M v $844Me; -6.9% afterhours
- FIVE: Reports Q3 $0.06 v $0.06e, R$110.7M v $137Me; -11.6% afterhours

Notable movers by sector:
- Consumer Discretionary: Qantas Airways QAN.AU +1.5% (shareholder raises stake); Myer Holdings MYR.AU -3.1% (shareholder initiates stake)
- Financials: China CITIC Securities 600030.CN +8.7%, Huatai Securities 601688.CN +5.3%, China Merchants Securities 600999.CN +6.6% (Nov Op results); Haitong Securities 6837.HK +9.7% (in talks to acquire Portuguese asset)
- Materials: Atlas Iron AGO.AI -6.3% (cuts job positions; adjusts guidance); Mount Gibson Iron MGX.AU -45.1% (cuts FY15 guidance)
- Energy: Santos Ltd STO.AU -2.8% (analyst actions)
- Industrials: Great Wall Motor 601633.CN +8.3% (Nov production results); Bradken Ltd BKN.AU +34.6% (receives acquisition proposal)

>>> US After Hours

After Hours Summary: SYNA +9.6%, ULTA +6.2%, GPS +3.6%, FIVE -11.6%, SPWH -9.0%, AEO -7.0%, SWHC -0.5% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: SYNA +9.6%, ULTA +6.2%, VTSS +4.2%, GPS +3.6%

Companies trading higher in after hours in reaction to news: ALSK +29.0% (announce sale of its remaining wireless assets to GCI Communications (GNCMA) for $300 mln), SIMG +6.0% (announced the launch of a new subsidiary to focus on 'Internet of Everything' services; Qualcomm (QCOM) participates with strategic investment), BCEI +3.4% (Millennium International Management disclosed 6.4% passive stake in 13G filing), GERN +2.3% (announced publication of preclinical data demonstrating activity of imetelstat on leukemic stem cells from acute myelogenous leukemia), HCI +1.8% (subsidiary approved to assume 50K policies from Citizens Property Insurance Corporation), CLDX +1.6% (initiated a Phase 2 study of Glembatumumab Vedotin in patients with advanced melanoma), NOC +1.5% (announced a new $3 bln share repurchase authorization), BKW +1.2% (seeing reports co received Canadian approval for takeover of Tim Hortons (THI) provided certain conditions are met)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: FIVE -11.6%, SPWH -9.0%, AEO -7.0%, RALY -5.7%, COO -2.5%, ZUMZ -1.6%, AMBA -1.5%, FNSR -1.5%, SWHC -0.5%

Companies trading lower in after hours in reaction to news: GTT -4.5% (announced public offering of common stock, size not disclosed), FCAU -3.5% (announced launch of offering of 87 mln common shares and offering of $2.5 bln of mandatory convertible securities due 2016)

Time Is on AT&T’s Side in Wait for Slim’s Assets: Real M&A

+------------------------------------------------------------------------------+

Time Is on AT&T’s Side in Wait for Slim’s Assets: Real M&A 2014-12-04 23:33:00.425 GMT

(For a Real M&A column news alert: SALT REALMNA <GO>.)

By Scott Moritz and Patricia Laya Dec. 5 (Bloomberg) -- AT&T Inc. has no reason to hurry into any more deals in Mexico. In fact, the more patiently the U.S. phone company waits, the better. AT&T has made two acquisitions this year in its expansion into Mexico -- neither with billionaire Carlos Slim, who dominates the country’s communications industry. Instead, AT&T has committed more than $50 billion to buying Mexican wireless carrier Grupo Iusacell SA and DirecTV, which has a stake in satellite-TV service Sky Mexico. That’s left Slim, a former ally of AT&T, in limbo because he needs to divest a large portion of America Movil SAB’s assets in Mexico to reduce its market share below 50 percent and avoid profit-reducing penalties. AT&T may be Slim’s best hope for a buyer as the Dallas-based company is trying to bundle wireless, TV and broadband services south of the U.S. border. The catch is that the Iusacell business AT&T is buying benefits as long as America Movil faces penalties. Dragging out that punishment also may make for a tougher -- and maybe cheaper -- sale for Slim. “AT&T is in no rush to buy America Movil’s assets in the short term,” Gregorio Tomassi, an analyst at Banco Itau BBA, said in a phone interview from Mexico City. “America Movil is seeing the situation is becoming more difficult than they had initially thought.”

SoftBank Out

America Movil originally contacted potential suitors including AT&T, SoftBank Corp. and China Mobile Ltd. as it prepared to sell landline and wireless assets worth about $17.5 billion, people with knowledge of the matter said in September. Since then, Tokyo-based SoftBank has dropped out of the process, according to other people familiar with the matter, who asked not to be named because the decision was private. Mariko Osada, a spokeswoman for SoftBank, declined to comment, as did a press official for America Movil, which has a market value of $77 billion. Fletcher Cook, an AT&T spokesman, declined to comment on the company’s expansion strategy in Mexico. AT&T’s presence in Mexico since announcing the purchase of Iusacell on Nov. 7 reduces the appetite of other foreign buyers to enter the market and improves AT&T’s negotiating power with America Movil, Tomassi said. “AT&T has the clearest way to create synergies,” Tomassi said. “No other operator interested in coming has the level of synergies, cross-border or inside of Mexico, as AT&T.”

AT&T Expansion

The $176 billion U.S. phone giant had been searching for new businesses and new regions for expansion amid increased competition and slowing wireless growth at home. Chief Executive Officer Randall Stephenson initially set his sights on Europe but shifted back to the Americas after Comcast Corp. announced plans to buy Time Warner Cable Inc. AT&T agreed to pay $48.5 billion for DirecTV, including its Latin American business, expanding outside the U.S. for the first time in a decade. It then agreed to buy Iusacell, Mexico’s third-largest wireless carrier, for an equity value of $1.8 billion. Mexico helped open the door to competitors earlier this year when it signed a telecommunications overhaul into law. The new rules force America Movil, which controls seven out of 10 mobile-phone users in the country, to cut its fees and share infrastructure with its competitors. Even without the legislation, Mexico’s proximity, economic growth potential and increasing population make it a prime market for AT&T to expand its TV, wireless and Internet service business.

Balance Sheet

AT&T has the means to buy America Movil’s assets and extend its reach further in Mexico. Holding off on another deal, for now at least, might be better for its balance sheet. Its shopping cart is already filling fast. On top of DirecTV and Iusacell, AT&T is one of the top bidders in the Federal Communications Commission’s airwave auction, which has already surpassed $41 billion. Meantime, its A credit rating has been in jeopardy since May when Fitch Ratings put it under review for downgrade after the DirecTV deal was announced. AT&T had about $2.5 billion in cash and cash equivalents as of September and has been trimming costs and selling assets this year. Last month, the phone company said it was cutting its projected 2015 capital spending budget by 14 percent to $18 billion. For AT&T to keep up with its network expansion in the U.S., continue paying shareholders the 10th highest dividend yield in the Standard & Poor’s 500 Index and build businesses in growth markets, it will need more money. While borrowing is an option, another deal would only exacerbate the situation, putting further pressure on its credit standing.

No Need

AT&T’s Stephenson has said that the timing and structure of America Movil’s breakup isn’t clear yet and that his phone company would be just fine without Slim’s assets. “We believe we have found a path here that gets us a very nice, scalable growth platform without the America Movil assets,” Stephenson said at an investor conference last month. “If things materialize over time and those look attractive, you’d obviously have to look at them. But we really don’t need the America Movil assets to be successful.” A deal to hive off some of America Movil’s assets was always going to be a long, complicated process, according to Jim Kahan, a former AT&T strategy chief. “Divestitures like this aren’t a simple thing to do,” said Kahan, a senior adviser with TAP Advisors LLC, a boutique investment-banking firm. “My guess is once the Iusacell deal closes, AT&T is going to to want to start building that business. My gut reaction is that they can start even without America Movil.”

Breathing Room

AT&T has some breathing room. It’s under no great pressure to purchase America Movil’s assets, said Dave Novosel, an analyst at Gimme Credit LLC. “I don’t think there are a lot of players that are in a position to buy the America Movil assets, so I don’t think AT&T has much competition,” Novosel said in a phone interview. “Meanwhile, AT&T already has two acquisitions going at the same time, so there’s reason to think they have the flexibility to wait.”

For Related News and Information: AT&T CEO Says Doesn’t Need America Movil’s Assets in Mexico America Movil Falls as AT&T’s Mexican Deal Spurs Competition AT&T Faces Off Against Former Ally Slim With Second Mexico Deal Bloomberg Intelligence, North American telecom: BI TELCN <GO> Real M&A stories: NI REALMNA <GO> Top deal stories: DTOP <GO>

--With assistance from Carlos Manuel Rodriguez in Mexico City, Jeffrey McCracken in New York and Grace Huang in Tokyo.

To contact the reporters on this story: Scott Moritz in New York at +1-212-617-5460 or smoritz6@bloomberg.net; Patricia Laya in Mexico City at +52-55-5242-9262 or playa2@bloomberg.net To contact the editors responsible for this story: Sarah Rabil at +1-212-617-5992 or srabil@bloomberg.net; Beth Williams at +1-212-617-2307 or bewilliams@bloomberg.net Beth Williams

(EDG) Fiat Chrysler Automobiles N.V.: F-1/A 2014/12/04


Fiat Chrysler Automobiles N.V.: F-1/A 2014/12/04
2014-12-04 21:59:28.54 GMT

Table of Contents

As filed with the Securities and Exchange Commission on December 4, 2014

Registration No. 333-199285

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

AMENDMENT NO. 3

TO

FORM F-1

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 

 

FIAT CHRYSLER AUTOMOBILES N.V.

(formerly Fiat Investments N.V.)

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

The Netherlands   3711   Not Applicable
(State or Other Jurisdiction of (Primary Standard (IRS Employer
Industrial
Incorporation or Organization) Identification Number)
Classification Code
  Number)  

 

 

Fiat House

25 St. James’ Street

London SW1A 1HA

United Kingdom

Tel. No.: +44 (0)20 7766 0311

(Address, Including Zip Code, and Telephone Number, Including Area Code, of
Registrant’s Principal Executive Offices)

 

 

Richard K. Palmer

c/o Chrysler Group LLC

1000 Chrysler Drive

Auburn Hills, Michigan 48326

Tel. No.: (248) 512-2950

(Name, Address, Including Zip Code, and Telephone Number, Including Area Code,
of Agent for Service)

 

 

Copies to:

 

Scott D. Miller, Esq. Giorgio Fossati William V. Fogg, Esq.

Sullivan & Cromwell LLP c/o Fiat Chrysler Johnny G. Skumpija, Esq.
Automobiles N.V.
125 Broad Street Cravath, Swaine & Moore
25 St. James’ Street LLP
New York, NY 10004
London SW1A 1HA Worldwide Plaza
Tel. No.: (212) 558-4000
United Kingdom 825 Eighth Avenue

Tel. No.: +44 (0)20 7766 New York, NY 10019
0311
    Tel. No.: (212) 474-1000

Approximate date of commencement of proposed sale to the public: As soon as
practicable after the effective date of this Registration Statement.

If any of the securities being registered on this form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, check the following box.  ¨

If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, check the following box and
list the Securities Act registration statement number of the earlier effective
registration statement for the same offering.  ¨

If this form is a post-effective amendment filed pursuant to Rule 462(c) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering.  ¨

If this form is a post-effective amendment filed pursuant to Rule 462(d) under
the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering.  ¨

 

 

CALCULATION OF REGISTRATION FEE

 

 
Title of each class of Proposed maximum Amount of
securities Amount to be
aggregate offering registration
to be registered   registered^(1)   price   fee^(5)(6)
Common shares, nominal
value €0.01   100,000,000   1,251,000,000^(2)   145,366.20
Special voting shares,
nominal value €0.01   100,000,000    
Mandatory Convertible
Securities due
2016^(3)(4)   Not applicable   2,875,000,000   334,075.00
 
 

^(1)  Includes shares to be sold upon exercise of the underwriters’ option to
purchase additional common shares. See “Underwriting.”

^(2)  Estimated solely for the purpose of calculating the registration fee
pursuant to Rule 457(o) and Rule 457(c) of the Securities Act. The
aggregate offering price of the Registrant’s common shares was
calculated as follows: (a) 100,000,000, the estimated number of the
common shares to be offered by the Registrant, multiplied by (b) $12.51
the average of the high and low prices of the Registrant’s common shares
on the New York Stock Exchange on November 28, 2014, as reported on
Bloomberg.

^(3)  Includes securities to be sold upon exercise of the underwriters’ option
to purchase additional Mandatory Convertible Securities. See
“Underwriting.”

^(4)  In accordance with Rule 457(i) of the Securities Act, this registration
statement also registers the Registrant’s common shares that are
initially issuable upon conversion of the         % Mandatory
Convertible Securities due 2016 registered hereby. The number of the
Registrant’s common shares issuable under such conversion is subject to
adjustment upon the occurrence of certain events described herein and
will vary based on the public offering price of the common shares
registered hereby. Pursuant to Rule 416 of the Securities Act, the
number of the Registrant’s commons shares to be registered includes an
indeterminable number of shares of common shares that may become
issuable upon conversion of the         % Mandatory Convertible
Securities due 2016 as a result of such adjustment.

^(5)  Calculated at a rate equal to 0.0001162 multiplied by the proposed
maximum aggregate offering price.

^(6)  $23,240 has been previously paid in connection with this offering.

 

 

The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall
file a further amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said
Section 8(a), may determine.

(BN) Starz Said to Consider New Options as It Fails to Find Buyer (2)


Starz Said to Consider New Options as It Fails to Find Buyer (2)
2014-12-04 21:15:15.579 GMT


(Closes Starz shares in seventh paragraph.)

By Alex Sherman
Dec. 4 (Bloomberg) -- Starz LLC, the pay-TV channel with
more than 50 million subscribers, is considering alternatives to
a sale after reaching out to potential bidders who passed on
making an offer, according to people familiar with the matter.
CBS Corp., Lions Gate Entertainment Corp., AMC Networks
Inc. and 21st Century Fox Inc. were among the companies that
considered buying Starz and didn’t make bids because they
thought it was overvalued, said the people, who asked not to be
named because they weren’t authorized to speak publicly. Offers
for the network, controlled by billionaire John Malone, were due
last month, the people said.
Starz, which has an enterprise value of about $4 billion,
is now considering investments and partnerships with U.S.-based
or European-based media companies in lieu of selling itself,
although nothing will be determined this year, one of the people
said. Any deal would need to have beneficial tax implications
for Malone, the person said. Malone wants to maintain control of
the company, another person said.
Potential buyers considered Starz’s current valuation too
high because of uncertainty around the company’s future
programming, two of the people said. Netflix Inc. acquired
exclusive U.S. rights to Walt Disney Co. movies beginning in
2016 -- films that currently air first on Starz as soon as seven
months after being in theaters.

Future Fears

Without Disney films and amid potential consolidation among
pay-TV providers, buyers feared declining affiliate fee revenue
for Starz, the people said. Starz will earn about $1.90 per
subscriber per month from pay-TV providers in 2015, according to
research firm SNL Kagan, unchanged from this year.
Starz, which owns the Starz and Encore premium channels,
has about 56 million subscribers. Encore customers have declined
for five consecutive quarters, to 33.7 million as of Sept. 30
from 35.1 million.
Starz hired LionTree Advisors LLC earlier this year to seek
potential buyers, people with knowledge of the matter said in
September. The Englewood, Colorado-based company dropped 16
percent to $27.78 at the close in New York, giving it a market
value of almost $3 billion.
Representatives for Starz, CBS, Lions Gate and AMC and Fox
declined to comment.
Malone’s Liberty Media Corp. spun off Starz in January
2013. Malone continues to hold a 46 percent voting stake,
according to an April regulatory filing.
Liberty Media Chief Executive Officer Greg Maffei, who
serves as chairman of Starz, said in September 2012 the network
would be more valuable combined with a media company that
operates other cable channels. More than two years later, no
deal has been struck.
Starz offers a mix of films and original programming. Its
original shows include “Outlander,” a drama based on a series
of novels by Diana Gabaldon, and “The Chair,” a documentary
series about a competition between directors attempting to make
their first feature film.

For Related News and Information:
Starz Said to Hire LionTree to Seek Buyers of Cable Network
NSN NCF9G06TTDSD <GO>
Time Warner Plans HBO Marketing Push to Speed Network’s Growth
NSN NC2QI76S9728 <GO>
Bloomberg Intelligence: BI DVENN <GO>
Top Deal Stories: DTOP<GO>

--With assistance from Lucas Shaw and Anousha Sakoui in Los
Angeles.

To contact the reporter on this story:
Alex Sherman in New York at +1-212-617-8278 or
asherman6@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman, Rob Golum

>>> Alcoa - Unveils Next-Generation Aluminum Materials Through Breakthrough Manu

Unveils Next-Generation Aluminum Materials Through Breakthrough Manufacturing Technology 
- Micromill produces automotive alloy that is 40 percent more formable and 30 percent stronger than incumbent aluminum, while meeting stringent automotive surface quality requirements
- Automotive parts made with Alcoa Micromillmaterial will be twice as formable and 30 percent lighter than parts made from high strength steelAlcoa Micromill reduces the time to transform molten metal into aluminum coil from 20 days to 20 minutes

>>> US Close Dow-0,07% S&P-0,13% Nasdaq-0,11% Russell -0,50%

Closing Market Summary: Stocks End Flat After ECB Stands Pat

The stock market ended the Thursday session on a modestly lower note ahead of Friday's Nonfarm Payrolls report for November. The S&P 500 shed 0.1% while the Russell 2000 (-0.5%) underperformed.  

Thursday served as a perfect reminder for how dependent global equity markets have become on central bank stimulus. The first reminder occurred during the Asian session with China's Shanghai Composite soaring 4.3% amid expectations the People's Bank of China will introduce additional stimulus measures. While today's advance was impressive, it pales in comparison with an 18.3% surge in the index since November 20.

Meanwhile, the second reminder manifested itself through volatility in European and U.S. markets in reaction to the European Central Bank's latest policy statement and subsequent press reports.

As expected, the ECB made no changes to its interest rate corridor, but more notably, President Mario Draghi did not call for the start of a sovereign QE program, which had been expected by some. Instead, Mr. Draghi said the economic situation in the eurozone will be reassessed early next year. Furthermore, the ECB lowered its 2015 GDP projection to 1.0% from 1.6% and cut its harmonized inflation forecast for the region to 0.7% from 1.1%.

The absence of a QE announcement gave a boost to the euro while pressuring European and U.S. stocks. However, U.S. equities were able to string together a rebound after markets in Europe closed for the day. That recovery was capped with the S&P 500 spiking into the green just after 12:30 ET when Bloomberg reported the European Central Bank will prepare a broad-based QE package for the January meeting. In a way, preparations for such a program should be expected even if no announcement is made in January and it is worth pointing out that Mr. Draghi was pressed to define ‘early' during his press conference, to which he responded, "Early, it means early, it doesn't mean the next meeting."

The vague report knocked the euro off its high to 1.2380 against the dollar after the single currency tested the 1.2455 level in the morning. Conversely, the Dollar Index (88.62, -0.33) halved its loss to 0.4%.

Although the early afternoon rebound sent the benchmark index back to its flat line, the S&P 500 was unable to extend that move. The index spent the next two hours within a point of unchanged before sliding away from its flat line into the close. Once again, an ECB-related report was cited for the afternoon weakness after Germany's Die Welt reported Mr. Draghi no longer enjoys majority support on the Executive Board.

Eight sectors finished in the red with energy (-0.9%) spending the day at the bottom of the leader board. The sector slumped as crude oil surrendered 0.8% to $66.75/bbl, but despite the decline, the energy sector will enter Friday with a week-to-date gain of 2.4% versus a slim 0.2% uptick for the S&P 500.

Outside of energy, telecom services (-0.2%) and industrials (-0.5%) were the only two groups unable to keep pace with the market. The industrial sector followed its top component—General Electric (GE 26.09, -0.29)—lower, while transport stocks held up relatively well with the Dow Jones Transportation Average ending in-line with the market.

Elsewhere, the consumer discretionary sector also finished in-line with the S&P 500, but retail stocks were pressured after Aeropostale (ARO 2.48, -0.71), Express (EXPR 13.19, -1.30), Guess? (GES 20.07, -2.10), and PVH (PVH 122.68, -1.72) disappointed with their earnings and/or guidance. The four names lost between 1.4% and 22.3% while the SPDR S&P Retail ETF (XRT 92.73, -0.64) fell 0.7%.

On the upside, financials (+0.1%), materials (+0.3%), and technology (+0.1%) registered modest gains. Notably, the tech sector received a measure of support from the PHLX Semiconductor Index, which added 0.1%. Shares of Avago Technologies (AVGO 103.07, +7.94) spiked 8.4% and were responsible for the bulk of the uptick in reaction to strong quarterly results and guidance.

Treasuries ended on their highs with the 10-yr yield sliding four basis points to 2.24%.

Participation was a bit below average with just over 780 million shares changing hands at the NYSE floor.

Economic data was limited to initial claims and the Challenger Job Cuts report:
  • Weekly initial claims fell to 297,000 from an upwardly revised rate of 314,000 (from 313,000) while the consensus expected a decline to 295,000 
    • Continuing claims increased to 2.362 million from an upwardly revised 2.323 million (from 2.316 million) 
  • The Challenger Job Cuts report showed a 21.0% year-over-year decline in planned layoffs to follow the prior increase of 11.9% 
Tomorrow, the November Nonfarm Payrolls report (consensus 230K) will be released at 8:30 ET alongside the October Trade Balance (consensus -$42.00 billion). The Factory Orders report for October (consensus 0.2%) will cross at 10:00 ET and the day's data will be topped off with the 15:00 ET release of the Consumer Credit report for October (consensus $16.50 billion).
  • Nasdaq Composite +14.2% YTD 
  • S&P 500 +12.1% YTD 
  • Dow Jones Industrial Average +8.0% YTD 
  • Russell 2000 +0.8% YTD

>>> Fed watcher Hilsenrath (WSJ): According to research from senior Fed economis

Fed watcher Hilsenrath (WSJ): According to research from senior Fed economists, the "optimal" path for short-term rates is to start raising soon and complete the process quickly 
- The Fed's new "optimal control" study that was conducted in November determined the best time to start raising rates is "right now" in Q4, taking Fed Funds rate to 1.4% by Q4 of 2015, 2.6% by Q4 of 2016, and 3.5% by end of 2017.
- Report adding that Chair Yellen pays attention to the findings of this study.
- Since the 2012 simulations, unemployment rate has come down faster than expected.


WSJ Full Article.

Fed Simulations Call for Rate Hikes Soon By JON HILSENRATH

The optimal path for short-term U.S. interest rates might be to start raising them soon and end the process quickly, according to research conducted by senior Federal Reserve economists.

The Fed’s new “optimal control” study, completed in late November, is akin to putting the whole economy through a flight simulator to estimate how much fuel it needs to ride through a storm. Using a model known as FRB/US, Fed staffers simulate a path for the central bank’s benchmark interest rate – the federal funds rate – that results in the quickest possible return to low unemployment and stable inflation around 2%.

The study finds the best time to start lifting the fed funds rate from near zero is right now, in the fourth quarter of 2014, followed by increases to 1.4% by the fourth quarter of 2015, 2.6% by the fourth quarter of 2016 and 3.5% by the end of 2017. Looking out past 2020, the simulations never result in short-term rates above 4%.

These simulations are noteworthy in part because Fed Chairwoman Janet Yellen pays attention to them. She highlighted earlier versions of optimal control exercises in speeches in 2012, citing the work as evidence the Fed should take its time raising rates.

Those earlier simulations had notably different outcomes than the news ones. They pointed to the optimal time for liftoff as late 2015, followed by a steep path of rate increases that pushed the benchmark to near 5% by 2020.

Several factors have changed since the 2012 simulations. The jobless rate has come down faster than Fed officials expected when the simulations were done two years ago. In mid-2012, the jobless rate exceeded 8% and Fed officials expected it to retreat slowly to between 7% and 7.7% by the end of 2014. Instead it was 5.8% in October. That helps explain the earlier liftoff produced by the model now. (The fact that Fed officials and their models were so wrong about the trajectory of unemployment is one reason to treat all of these model simulations with great caution — more on that below.)

Though the authors don’t specifically cite it, the economic profession’s debate about “secular stagnation” lurks in the changing simulations. The secular stagnation idea, popularized by Harvard University professor Lawrence Summers, holds that the economy doesn’t grow as fast as it used to because of low worker productivity and labor force growth. That in turn means interest rates don’t need to go as high as previously thought once they do start rising. Fed officials have reduced their estimate of how high short-term interest rates need to go in the long-run, from 4.25% in 2012 to 3.75% more recently, which explains the lower amplitude of rates in the new simulations.

Other factors are at play. As noted by the authors — Flint Brayton, Thomas Laubach, and David Reifschneider – the Fed’s views about the causes of inflation and its interplay with the economy and interest rates also have evolved since the 2012 simulations. The Fed’s updated models see inflation as more inertial and less responsive either to slack or to changes in the fed funds rate than previously thought. The simulations suggest that new inflation view should encourage officials to take a slower path of rate increases than thought before. At the same time, it should make them reluctant to allow inflation to overshoot the 2% goal, because it could be hard to get back down.

Ms. Yellen, in her 2012 speeches, warned it would be “imprudent” to put too much weight on these simulation exercises, a view seconded by the Fed researchers, who say the models should be treated with a “high degree of caution” as a guide to actual interest rate policy. As the latest shifts show, the models themselves are imperfect and subject to change. For example, the recent global downdraft in inflation, driven in part by commodity price declines, could change the results again if it persists or deepens. Fed officials are expecting inflation to gradually rise to 2%.

Moreover, the models are sensitive to how much weight officials put on making interest rate changes steady and predictable. The more comfortable they are making swift changes to rates, the longer they can wait before raising them.

Still, the new exercise does provide a window into how thinking at the Fed is evolving as it nears interest rate liftoff, after holding the fed funds rate near zero since December 2008. In comments this week, Fed Vice Chairman Stanley Fischer and New York Fed President William Dudley both strongly suggested the central bank is inclined to start raising rates in the months ahead even though inflation is lower than the central bank’s 2% target. The new simulations support that view. At the same time, the two officials focused a great deal of attention on what happens once the Fed does start raising rates. What is the path of rate hikes going to look like? The new simulations suggest it will be modest indeed.