>>> US Gapping up

Gapping up 
In reaction to strong earnings/guidance: LEDS +21.4%

M&A news: CONN +0.5% (may be a possible takeover target, according to Bloomberg real M&A column), .

Select Travel related names showing strength: JBLU +6.6%, UAL +5.3%, VA +5.3%, DAL +5.1%, LUV +4.1%, SAVE +3.1%, CCL +2.3%, ALK +2%, RCL +1.8%.

Select Auto OEMs trading higher: TTM +3.1%, TM +1.5%, F +1.2%

Other news: CTIC +4% (disclosed select financial information for October), VOD +2.2% (SKIPSKIPSKIP), DEO +2% (peer Remy Cointreau announced earnings), BUD +1.6% (peer Remy Cointreau announced earnings), UPS +1.4% (beneficiary of lower oil prices), FDX +1.4% (beneficiary of lower oil prices), RIO +1.3% (hosted investor day, promises to deliver sustainable returns to shareholders)

Analyst comments: VOD +2.2% (hearing added to Key Call List at UBS), BCS +2% (upgraded yesterday to Buy from Neutral at Goldman), SBUX +0.9% (target raised to $100 from $90 at Piper Jaffray), AMZN +0.6% (target raised to $400 from $350 at Piper Jaffray) 

>>> US Gapping down

Gapping down
Select oil/gas related names showing early weakness: STO -13%, EXXI -12.3%, TLM -12.3%, HK -10.5%, SSL -10%, PWE -9.4%, CHK -9.3%, SU -8.5%, RIG -8%, SDRL -7.6%, CLR -7.2%, TOT -7%, PBR -6.3%, RDS.A -6.1%, BP -5.7%, LINE -5.7%, ESV -4.7%, MRO -4.7%, DO -4.6%, APC -4.5%, SLB -4.2%, BHI -4.1%, COP -4%
 
Select "other energy source" names showing weakness: PLUG -5.3%, CSIQ -4.1%, SUNE -3.1%, BTU -3%

Select metals/mining stocks trading lower: AG -6%, BHP -5.4%, AU -4.8%, GOLD -3.7%, GDX -3.2%, SLV -3.1%, AKS -2%, FCX -1.7%

Other news: AVNR -6.4% (received a Complete Response Letter from FDA for AVP-825 for the treatment of migraines; the FDA did not request that any additional clinical trials be conducted prior to approval), LAKE -5.3% (cont pull back from recent move), TKMR -2% (filed for a $150 mln offering of common shares), CJES -0.5% (announced that it has begun soliciting alternative proposals to purchase the company, or a controlling stake in the company, that are superior to its proposed combination with Nabors' completion and production services business)

Analyst comments: FMS -1.1% (downgraded to Equal-Weight from Overweight at Morgan Stanley), CTRP -1.1% (downgraded to Neutral from Overweight at JP Morgan), HSBC -1.1% (downgraded to Neutral from Buy at Goldman; removed from Pan-Europe Buy List) 

>>> US Early premarket gappers

Early premarket gappers

Gapping up: LEDS +21.4%, RWT +13.3%, G +9.7%, JBLU +6.6%, PKY +5.8%, VA +5.7%, DAL +5.1%, LUV +4.9%, UAL +4.2%, CTIC +4%, SAVE +3.1%, TTM +3.1%, VOD +2.2%, ALK +2%, RCL +2%, BUD +1.3%, DEO +1.2%, F +1.1%

Gapping down: STO -13.5%, EXXI -12.3%, CHK -11.5%, TLM -11.1%, HK -10.5%, SSL -10%, PWE -9.2%, SU -9%, RIG -8.8%, CLR -8.1%, SDRL -7.9%, TOT -7.3%, AVNR -6.4%, RDS.A -6.4%, BP -6.3%, AG -6.2%, PBR -6.1%, BHP -6%, ESV -5.8%, LINE -5.7%, PLUG -5.3%, APC -5%, MRO -4.7%, SLB -4.6%, AU -4.5%, COP -4.3%, BHI -4.3%, LAKE -4.2%, GOLD -4.1%, DO -4.1%, SLV -3.5%, GDX -3.4%, CSIQ -3.2%, SUNE -3.1%, BTU -2.8%, FCX -2.4%, TKMR -2%, AKS -2%

>>> SFR-Numericable does not need to acquire Bouygues Telecom

SFR-Numericable does not need to acquire Bouygues Telecom 

SFR-Numericable, the French mobile phone and cable operator, does not need to acquire competitor Bouygues Telecom, French daily Le Figaro reported, citing Eric Denoyer, chief executive of SFR-Numericable.

He added that the industrial project for SFR-Numericable, which aims to overpass French leader Orange in the broadband and mobile markets, would take 100% of the available time.

A report from French newsletter Before Dinner also cited Emmanuel Macron, the French Finance and Economy Minister, as saying that a consolidation of the French telecoms sector made no sense and that, therefore, the companies operating in the market, currently four would not be reduced to three.

>>> Friends/Aviva tie-up still faces number of outstanding issues

Friends/Aviva tie-up still faces number of outstanding issues

Management line-up of combined entity yet to be decided
Friends Life "decaying" cashflow flagged as potential issue
There are still a number of issues outstanding in the talks between Aviva [LON:AV] and Friends Life [LON:FLG], two sources close to the situation said.

Both have progressed to advanced stages in their mutual due diligence, but issues, including the role of Friends Life management in the combined entity, have yet to be decided, one of the sources said. It was “unfortunate” that the deal talks were leaked before certain matters were resolved, this source said.

One sector banker speculated certain issues were likely to come up in due diligence, particularly in relation to Friends Life’s future cashflows. These slow considerably in the next two to three years, the sector banker claimed.

But an insurance analyst argued that Friends Life’s cash flow is likely to be stagnant over the next few years but should not drop markedly. The life insurer’s cash flow will slow as its closed books mature, but this will be a gradual process over many years, he said.

Friends Life’s value in force – roughly the present value of future profits from its existing insurance policies – will show a strong surplus even by 2023, the first source agreed. The value in force decays over decades rather than years, he said.

Aviva is carrying out the deal to substantially increase cash flows and accelerate the growth of its dividend.

Friends Life estimates that its expected return from in-force business will decline from GBP 600m in 2014 to GBP 370m in 2023, according to its 1H14 report.

Aviva is offering a high price for Friends Life, the sector banker and the analyst agreed. The offer price is roughly equal to Friends Life’s embedded value – the adjusted net asset value plus the present value of its future profits – the analyst noted. In order to motivate that, the bidder will need to identify strong synergy potential during the due diligence process, he argued.

Aviva’s share price has declined almost 6% since the potential all-share offer was announced. Because the offered ratio of 0.74 Aviva shares for each Friends Life share already implies a hefty price tag, the suitor may need to reconsider those terms if its share price continues to decline, the analyst said.

Aviva reserves the right, with the recommendation of the board of Friends Life, to amend the exchange ratio of Aviva ordinary shares for Friends Life ordinary shares, according to a joint stock exchange announcement.

From a strategic standpoint, the proposed deal is “surprising” as Aviva has large operations outside of the UK and showed little interest in an expansion at home, the first and a second sector banker agreed. But the deal could make financial sense thanks to the potential for cost synergies, they said.

A tie-up could allow the parties to take out “loads of overheads”, said Liontrust fund manager Stephen Bailey, who holds around 0.5% of Friends Life. The deal would allow Aviva and Friends Life to trim some costs, including the ones for head office functions and pension plans, a second Friends Life shareholder agreed.

Apart from cost reductions, the deal would also generate capital synergies, the second shareholder said. Aviva’s and Friends Life’s insurance books will have different risk characteristics. And when they spread the risks over a larger book, they might be able to hold less capital, this shareholder added.

Aviva announced it had agreed the terms of a potential all-share takeover of Friends Life on 21 November. The deal terms value the target at 398.9 pence a share based on Aviva’s closing price on the day of the announcement. It represented a premium of 15% on 21 November and 28% to Friends Life’s three months average share price.

>>> UK government rules out selling remaining 30% shareholding in Royal Mail bef

UK government rules out selling remaining 30% shareholding in Royal Mail before 2015 general election

The UK government has indicated that it will not sell its remaining 30% shareholding in Royal Mail before the general election in 2015, The Guardian reported. The newspaper quoted UK business secretary Vince Cable, who said he thinks the government should retain its stake at present, adding that the government will not do anything in the “foreseeable future."

The government floated Royal Mail, the UK’s national mail delivery service, last October at a flotation price of 330p. The share price subsequently hit 600p but has fell back this year. Royal Mail’s share price closed 2.5p down at 420.6p in London yesterday, 27 November, giving the company a market capitalisation of GBP 4.20bn (EUR 5.30bn).

The Guardian

>>> What to look at today - 28th of Nov. 2014

. .--. {\ / q {\ { '\ \ (-(~' { '.{'\ \ \ ) { ' - { ' \ .-""""""-. \ \ { . _ { '.' \/ '.) \ { _. { . {' ] {._ { '{ ;'-=-. ] { -. { . ' { ';-=-.' / { ._. {.; '-=- .' {_.-' ''.__ _,-' [ ][ ]' .='=,

WTI Crude Oil traded at about $68 per barrel, hit fresh 4-yr lows, after OPEC...Energy lower in Asia on crude move, while airliners in Japan, Australia, China posted nice rallies...Shanghai leaded the move on more noise about rate cut...Banks and property firms led the gains...Chatter in China related to the deposit insurance system heated up, amid spec.of an official announcement in early 2015....Japan released Oct national CPI data, with nominal CPI missing the average consensus slightly, and core CPI in-line with expectations. Japan Economic Minister Amari reiterated views that lower oil prices were positive for domestic economy after CPI data.

Macro : - Investors Expect Cut in China Reserve Ratios: First Shanghai - Copper Traders Are Bullish on Expectation Stimulus to Aid Demand - Juncker Says Could Have Sanctioned France, Italy, but came with real plans : Repubblica

Keep an eye on : - AM FP / AIR FP : Airbus could shed full Dassault stake by end of 2015: Reuters - AZN LN : Pfizer, Astra Deal May Have Failed on Tax, Soriot Says: CNBC - CU FP : lub Mediterranee Post FY 2014 Net Loss of EU9m - CON GY : Continental to Appeal French Verdict on Factory Closure: Figaro - EOAN GY : E.On Said to Agree on Sale of Spanish Assets for $3.1b: WSJ - NESN VX : Nestle, L’Oréal to End Joint Venture Inneov - NESN VX : Nespresso’s Duvoisin Sees 40% Market Growth in U.S., Temps Says - NBPO LN : Commission’s Decision on Sime’s NBPOL Purchase May Be Delayed - RIO LN : Rio Tinto CEO Says Won’t Be Distracted by Glencore Approach, stick to strategy on iron ore. - STR AV : Strabag Repeats 2014 Output Guidance, Sees Ebit Little Changed - UHRN VX : Swatch CEO Hayek Not Concerned About Apple Watch: Handelsblatt - TEC FP : Technip Bid for CGG ‘Sensitive’ for French Economy, Macron Says - TEC FP : TECHNIP GETS SUBSEA CONTRACT BY STATOIL AT GULLFAKS FIELD - TIT IM : Telecom Italia Said to Mull Elisabetta Ripa as Argentine Chief - TLG GY : TLG Immobilien 9-Month FFO EU40.4m vs EU31.6m, Confirms Outlook - VATT SS : Vattenfall Halts Process for New Swedish Nuclear Reactors: SVT - DG FP / FGR FP : Royal Opposes French Highway Plans to Raise Tolls: Echos

Pfizer, Astra Deal May Have Failed on Tax, Soriot Says: CNBC

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

Pfizer, Astra Deal May Have Failed on Tax, Soriot Says: CNBC 2014-11-28 06:42:47.933 GMT

By Morwenna Coniam Nov. 28 (Bloomberg) -- If AstraZeneca had agreed to deal at the time, it “probably” would have “fallen apart by now,” due to changes to U.S. tax inversion laws, according to AstraZeneca CEO Pascal Soriot, CNBC reports, citing an interview. * A deal would have “created enormous destruction and disruption” in the company: CNBC * “Can’t predict” what will happen with regards to a second bid: CNBC * NOTE: AstraZeneca rebuffed a $117b offer from Pfizer in May, saying the bid undervalued its drug pipeline * NOTE: Nov 18, AstraZeneca’s Soriot Asks for Patience as Pfizer Return Looms

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

To contact the reporter on this story: Morwenna Coniam in Hong Kong at +852-2977-6612 or mconiam@bloomberg.net To contact the editors responsible for this story: Clyde Eltzroth at +1-212-617-1879 or celtzroth1@bloomberg.net Colin Keatinge, Morwenna Coniam

>>> Asian Update

Asian Market Update: Shanghai Composite rallied to 40-month high; US Dollar stronger after OPEC decision today

***Economic Data*** - (KR) South Korea Dec Business Survey Manufacturing: 75 v 74 Prior; Business Survey Non-Manufacturing: 70 v 67 Prior - (KR) SOUTH KOREA OCT INDUSTRIAL PRODUCTION M/M: -1.6% V 1.0%E ; Y/Y: -3.2% V -0.3%E - (KR) SOUTH KOREA OCT CYCLICAL LEADING INDEX CHANGE: 0.3 V 0.6 PRIOR - (AU) AUSTRALIA OCT PRIVATE SECTOR CREDIT M/M: 0.6% V 0.5%E; Y/Y: 5.7% V 5.5%E - (NZ) NEW ZEALAND NOV ANZ ACTIVITY OUTLOOK: 41.7 V 37.8 PRIOR; ANZ BUSINESS CONFIDENCE: 31.5 V 26.5 PRIOR; 4-month high - (NZ) New Zealand Oct M3 Money Supply Y/Y: 5.5% v 5.3% Prior - (NZ) New Zealand Oct Building Permits M/M: 8.8% (7-month high) v -11.9% Prior - (JP) JAPAN OCT JOBLESS RATE: 3.5% V 3.6%E - (JP) JAPAN OCT NATIONAL CPI Y/Y: 2.9% V 3.0%E; CORE CPI Y/Y: 2.9% (7-month low) V 2.9%E - (JP) JAPAN NOV TOKYO CPI Y/Y: 2.1% V 2.3%E; CPI EX FRESH FOOD Y/Y: 2.4% (8-month low) V 2.4%E - (JP) JAPAN OCT RETAIL SALES M/M: -1.4% V -0.5%E; Y/Y: 1.4% (4th month of increase) V 1.4%E - (JP) JAPAN OCT PRELIMINARY INDUSTRIAL PRODUCTION M/M: +0.2% V -0.6%E ; Y/Y: -1.0% v -1.7%E - (JP) JAPAN OCT VEHICLE PRODUCTION Y/Y: -6.3% V -2.6% PRIOR (4th straight decline) - (SG) Singapore Oct Credit Card Bad Debts (SGD): 26.4M v 24.4M Prior; Credit Card Billings: 3.9B v 3.9B Prior - (SG) Singapore Oct Money Supply M1 Y/Y: 4.0% v 1.6% Prior; M2 Y/Y: 2.0% v 1.9% Prior - (TH) Thailand Oct Manufacturing Output y/y: -2.9% v -3.9% prior

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 +1.2%, S&P/ASX -1.6%, Kospi -0.2%, Shanghai Composite +0.7%, Hang Seng -0.1%, Dec S&P500 flat at 2,073

***Commodities/Fixed Income*** - Dec gold -1.0% at $1,185, Jan crude oil -6.5% at $68.91/brl, Dec copper flat at $2.93/lb - (AU) Australia MoF (AOFM) sells 2017 Notes at avg yield of 2.5796% - (CN) China loans prime rate (LPR) declined by 1bp to 5.51% v 5.52% prior - OPEC MAINTAINS PRODUCTION QUOTA AT 30M BPD - JGB: (JP) Japan MoF sells ¥2.51T in 0.1% 2-yr notes, Avg Yield: 0.005% v 0.012% prior; bid to cover: 5.86x v 4.80x prior

***Market Focal Points/Key Themes/FX*** - WTI Crude Oil traded at about $68 per barrel, hit fresh 4-yr lows, after OPEC maintained daily production at 30M barrels. Energy companies in Asia opened sharply lower on the crude move, while airliners in Japan, Australia, China posted nice rallies. The US Dollar traded generally higher, sending the Aussie below $0.85 and Dollar/Yen above the ¥118 handle. - Shanghai Composite continued to be the leading index in Asia, reached fresh 40-month high. Banks and property firms led the gains, while Shanghai Pudong Development Bank traded higher by 7%, Bank of China higher by 7.5%, and Poly Real Estate higher by 4%. Chatter in China related to the deposit insurance system heated up, amid speculation of an official announcement in early 2015. - Japan released Oct national CPI data, with nominal CPI missing the average consensus slightly, and core CPI in-line with expectations. Japan Economic Minister Amari reiterated views that lower oil prices were positive for domestic economy after CPI data.

***Equities*** US markets: - GOOG: EU Parliament said to support draft wording of breakup plan related to the company; vote in favor of the measure was 458 to 173 - US financial press

Notable movers by sector: - Consumer Discretionary: Air China 753.HK +6.1%, China Eastern Airlines 600115.CN +9.4%, China Southern Airlines 1055.HK +7.7% (WTI Crude lower on OPEC) - Materials: Rio Tinto RIO.AU +1.9% (CEO comments on capex, operating updates); Shandong Gold 600547.CN +10.0% (plans to buy gold asset) - Energy: Sundance Energy Australia SEA.AU -14.6%, Santos STO.AU -13.0%, Drillsearch Energy DLS.AU -13.3% (WTI Crude lower on OPEC); Petrochina 857.HK -3.0%, CNOOC 883.HK -5.3% (WTI Crude lower on OPEC)