>>> Lundin Petroleum : Reports Kitabu-1 exploration well, offshore Sabah, Malays

Reports Kitabu-1 exploration well, offshore Sabah, Malaysia, has been completed as a dry hole 

Lundin Petroleum AB (Lundin Petroleum) has completed the Kitabu-1 well located in Blocks SB307/SB308, offshore Sabah, Malaysia. 

Objectives of the Kitabu-1 well were Miocene aged turbidite sands of similar age to the Shell operated South Furious 30 oil field, approximately four kilometres to the north. However the primary reservoir interval resulted in being a poor quality siltstone, and no hydrocarbon shows were encountered in the well. 

The well has reached planned total depth of 2,270 metres and is to be plugged and abandoned as a dry hole. 

Lundin Petroleum holds 42.5 percent interest in Blocks SB307/SB30 through its wholly owned subsidiary Lundin Malaysia BV. Partners are EnQuest with a 42.5 percent interest and PETRONAS Carigali Sdn Bhd with a 15 percent interest.

Lundin Malaysia BV operates seven blocks in Malaysia, namely, PM307, PM308A, PM308B, PM319, PM328, SB303 and SB307/SB308.

>>> What to look at today - 18th of November 2014

US MArket Closed mix, With Dow & S&P Flat and NAsdaq Russell Down, VIX @ 14,05 +5,56%...Draghi Comments & Some M&A news gave the change to Japanese Q3 GDP...countercyclical sectors displayed strength with consumer staples (+0.6%), health care (+0.5%), and utilities (+1.3%) registering solid gains while the telecom services sector (-0.2%) underperformed...Tyson Foods +5,8% on better numbers...ACT/AGN higher helped the healthcare sector...BHI/HAL helped the energy secyor but it was still one of worst performing sector, Crude slided to $75,61/bbl...US After Hours : CCM +11.0%, A +0.2%, OME -19.9%, URBN -5.1%, AMCN -0.4% following earnings/guidance, BX +6% : to sell Midtown Manhattan tower for $2.25b, XLNX +2.4% on Buyback...Chinese report on mainland property prices put Shanghai under pressure, average prices fell for the 6th consecutive time...Japanese press is confirming the18th month delay of Sales tax hike and dissolve the lower house of Diet, Abe is also widely expected to unveil a new set of fiscal stimulus measures, speculated to amount to as high as ¥3T...Sony (6758 JP) +6.50% on FY17 Targets...Real estates names down in Shanghai (China Vanke -1.5% & Poly Real Estate -3.3%)...Nikkei +2.18% Hang Seng -0.88% Shanghai -0.75%

Eur$ 1.2470 S&P +0.06% EuroStoxx +0.06% FTSE DAX +0.18% SMI +0.09%

Macro :
- China Oct. New Home Prices Fall M/m in 69 Cities; 69 in Sept.
- Qatar, U.K. Govt Said in Talks on U.K. Investment Projects: FT
- EU28 October Car Registrations Rise 6.5% Y/y to 1.073m Units

Keep an eye on :
- AREVA FP: French Govt Said to Name Varin Chair of Areva Later This Yr: FT
- AH NA : Ahold Targets EU2.5b in Online Sales by End 2017, Ahold to Expand Online Services to Midwest and Belgium ’15
- AKZA NA : Akzo to Invest EU100m-EU150m a Year in Efficiency, CFO Tells FD
- BMW GY : Spotify Said to Integrate With BMW Car Platform: TechCrunch
- BNP FP : Galeries Lafayette Contests Cofinoga Sale Price to BNP: Figaro
- DUE GY : Duerr could be a target ...Carlisle (CSL US) could be interested
- EDF FP : EDF Rejects Deal to Buy Quadra Utility in Russia: Vedomosti
- FNC IM : Finmeccanica May Extend Terms to Get Bids for AnsaldoBreda: Sole
- FNC IM : Finmeccanica railway units may attract late intervention from CdP
- GALP PL : Galp Decided Not to Pay Extraodinary Contribution, Jornal Says
- HOLN VX : Holcim Says Cost Program Ahead of Target, to Continue Past 2014
- ITP FP : Interparfums Says 2015 Sales, Operating Margin to Increase
- NUM FP : Numericable SFR Board to Have Mostly Numericable Members: Echos
- PTC PL : PT Portugal bidders Apax, Bain plan IPO if bid wins; could get join forces with local investors
- QPP LN : Quindell Said Set to Announce Chair, FD to Step Down: Sky
- SAN FP : Sanofi Board Said to Meet Tuesday to Discuss Governance: Reuters
- SAND SS : Sandvik to keep Sandvik Materials Technology but disposals and acquisitions remain a part of the cos trategy
- SMDR LN : Cepsa Has No Intention of Making Offer for Salamander
- SIX2 GY : Sixt 3Q Sales Rise 10%, Profit Up 16%; Raises 2014 Outlook
- TCH FP : Technicolor Shareholder Vector Wants New Strategy, Echos Says
- UTDI GY : United Internet 9-Month Sales, Profit Rise; Reiterates Targets
- FR FP : Valeo Windshield Wiper Case Against Trico to Be Investigated
- WDI GY : Wirecard to Acquire Certain Visa Processing Service Assets
- YOOX IM : Yoox CEO Marchetti Increases Stake in Co. to 7.8% From 5.3%
- ZO1 GY : Zooplus to Increase Share Capital by About 10%, Affirms Forecast

>>> Brokers Upgrades & Dwongrades - 18th of November

>>> Up
*REPSOL RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS

>>> Down
*GALP CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN
*MICHELIN CUT TO UNDERPERFORM FROM NEUTRAL AT EXANE; PT EU77
*SAFRAN CUT TO NEUTRAL VS BUY AT UBS
*STATOIL CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN

>>> PT Changes


>>> Initiation
*AIRBUS RATED NEW KEY UNDERPERFORM IN AEROSPACE AT CREDIT SUISSE
*AXIS COMMUNICATIONS RATED NEW IN-LINE AT IMPERIAL, PT SEK210
*BAE SYSTEMS RATED NEW OUTPERFORM AT CREDIT SUISSE
*MEGGITT RATED NEW UNDERPERFORM AT CREDIT SUISSE
*ROLLS-ROYCE RATED NEW UNDERPERFORM AT CREDIT SUISSE
*SAFRAN RATED NEW TOP OUTPERFORM IN AEROSPACE AT CREDIT SUISSE
*THALES RATED NEW OUTPERFORM AT CREDIT SUISSE
*TDC RESUMED BUY AT GOLDMAN, PT DK64

>>> Call
>> Stock
*ERSTE BANK ADDED TO CONVICTION BUY LIST AT GOLDMAN
*ING GROEP REMOVED FROM GOLDMAN CONVICTION BUY LIST; REMAINS BUY
*SAFRAN RATED NEW TOP OUTPERFORM IN AEROSPACE AT CREDIT SUISSE
>> Sector
*EUROPE TELCOS SECTOR RAISED TO POSITIVE VS NEUTRAL AT BARCLAYS

>>> Finmeccanica railway units may attract late intervention from CdP

Finmeccanica railway units may attract late intervention from CdP - report (translated)
Story
Cassa Depositi e Prestiti (CdP), the holding of the Italian Treasury, could make a late intervention in the sale process of the railway operations being sold by listed Italian defence group Finmeccanica, Italian-language daily Il Messaggero reported.

The report cited government sources who said that CdP could take a small stake in the rolling stock manufacturer Ansaldo Breda and listed railway signalling manufacturer Ansaldo STS to underline the strategic importance of both companies and to try and protect job levels.

The report added that Japanese industrial group Hitachi is still the frontrunner for the two units and is believed to have filed a EUR 1.2bn-EUR 1.4bn binding offer yesterday 17 November, the final bid deadline. The report said, however, that the binding offer deadline could be extended to try and get a higher price.

The report also claimed that China CNR Corporation could conjoin forces with Chinese technology group Insigma to make a renewed bid for Ansald Breda and Ansaldo STS. The report added that even if the two Chinese companies do combine forces, they are still unlikely to win the bid.

According to previous unconfirmed reports, China CNR Corporation has dropped out of the race, while Insigma remains in contention.


Source Il Messaggero

>>> PT Portugal bidders Apax, Bain plan IPO if bid wins; could get join forces w

PT Portugal bidders Apax, Bain plan IPO if bid wins; could get join forces with local investors 

PT Portugal bidders Apax Partners and Bain Capital plan to list the Portuguese if their EUR 7.75bn joint offer succeeds and could bring Portuguese partners into their bid consortium, Expresso reported.

Sources familiar with the process told the Lusophone paper that Apax and Bain want to launch a PT Portugal IPO if they acquire the firm, in order to finance investment in fibre-optic networks in the Iberian state.

Apax and Bain are also in talks with various Portuguese investors who could back their bid to buy PT Portugal from Brazilian telco Oi, the sources said. Another report in the same paper said postal services group CTT could be one of these potential local partners.

The joint offer from the UK and US investment groups values PT Portugal at EUR 7.075bn and is 30% in cash and 70% in debt, the sources said. A rival Altice bid valued at just over EUR 7bn is 100% debt based, the report added.


Source Expresso

>>> Asian Update

Asian Market Update: China property prices continue to slide; Japan PM Abe set to announce snap polls


***Economic Data***
- (CN) CHINA OCT NEW HOME PRICES M/M: PRICES RISE IN 0 OF 70 CITIES V 0 PRIOR; Y/Y: PRICES RISE IN 3 OF 70 CITIES V 10 PRIOR
- (CN) CHINA OCT ACTUAL FOREIGN DIRECT INVESTMENT (FDI) Y/Y: +1.3% V +1.1%E; YTD y/y: -1.2% (4th consecutive decline) at $95.88B v -1.4% prior
- (JP) JAPAN Q3 HOUSING LOANS Y/Y: 2.8% V 2.7% PRIOR
- (AU) Australia Sept Conference Board Leading Index: -0.3% v -0.1% prior (2nd consecutive decline)
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 113.0 v 114.8 prior (6-week low)

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +1.7%, S&P/ASX -0.3%, Kospi +1.0%, Shanghai Composite -0.4%, Hang Seng -0.6%, Dec S&P500 -0.1% at 2,038

***Commodities/Fixed Income***
- Dec gold +0.3% at $1,186, Dec crude oil -0.4% at $75.33/brl
- GLD: SPDR Gold Trust ETF daily holdings rise 2.4 tonnes to 723.0 tonnes; First rise since Oct 16th
- JGB: (JP) Japan's MoF sells ¥1.10T in 1.4% (1.4% prior) 20-year JGBs; Avg yield: 1.276% v 1.318% prior; bid-to-cover: 2.88x v 3.59x prior
- (JP) Japan 1-yr bill sold at negative yield for first time during auction
- (CN) PBoC to drain CNY20B in 14-day repos (31st consecutive drain)

***Market Focal Points/Key Themes/FX***
- Shanghai Composite has lost some of its post Hong Kong trading link related luster, leading regional indices to the downside after the release of another troubling report on mainland property prices. Average prices fell for the 6th consecutive time, down 0.8% m/m, while y/y drop of 2.5% was the second straight decline. Sequential decline did moderate for the second month, as Beijing scrambles to undo the tightening measures that caused property market inflation to grind to a halt. Top names in the property space - China Vanke and Poly - were down 1.6% and 2.4% respectively on the report.

- RBA released its policy minutes from November meeting and also noted that China property market slowdown poses one of the key risks to Australian economy. RBA further echoed the statement by noting that AUD is still elevated in trade weighted terms, and also implied the carry-trade flows from BOJ's expanded easing could hold the Australian exchange rate above fundamental levels even longer. Inflation outlook was deemed consistent with target range, while sluggish wage growth forecasted to keep price pressures in line. AUD/USD rose very slightly on the minutes release and the externally-driven tailwinds, hitting session highs around 0.8730.

- Numerous local press reports in Japan continue to indicate that PM Abe will formally confirm an 18-month delay to the sales tax increase and dissolve the lower house of Diet, allowing for the public to weigh in on this already unpopular measure. Some speculate that opposition will seek to frame this bump in the road reflected in the soft Q3 GDP as a failure of Abenomics in general, however cabinet members are deflecting the criticism and maintain the trend of recovery is intact. Accompanying the political maneuver, Abe is also widely expected to unveil a new set of fiscal stimulus measures, speculated to amount to as high as ¥3T. Nikkei225 has reclaimed about a half of its overnight losses as JPY weakened again, with USD/JPY finding short-term support at 116.40 and rising toward 116.80 morning-session highs.

***Equities***
US markets:
- SUNE: SunEdison and TerraForm Power sign definitive agreement to acquire First Wind for $2.4 Billion
- BX: To sell Midtown Manhattan office tower for $2.25B - financial press; +6.0% afterhours
- XLNX: Approves $800M buyback program (7% of market cap); +2.4% afterhours
- A: Reports Q4 $0.88 v $0.50e, R$1.81B v $1.81Be; +0.3% afterhours
- URBN: Reports Q3 $0.35 v $0.42e, R$814.5M v $818Me; -3.8% afterhours

Notable movers by sector:
- Consumer Discretionary: 361 Degress 1361.HK +3.7% (FY14 guidance); Joeone Co Ltd 601566.CN +1.9% (to acquire stake in brokerage securities firm)
- Financials: China Vanke 000002.CN -1.6%, Poly Real Estate 600048.CN -2.4% (China property prices decline), Sinotex Investment & Development 600061.CN +9.9% (to acquire Essence Securities)
- Materials: Doray Minerals DRM.AU +3.5% (enters agreement on exploration)
- Industrials: Toyota Motor Corp 7203.JP +2.2% (Chairman comments on fuel cell vehicles)
- Technology: Sony Corp 6758.JP +4.8% (sets targets for FY17)

>>>US After Hours

After Hours Summary: CCM +11.0%, A +0.2%, OME -19.9%, URBN -5.1%, AMCN -0.4% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: CCM +11.0%, A +0.2%

Companies trading higher in after hours in reaction to news: SUNE +6.0% (co and TerraForm Power (TERP) signed an agreement to acquire First Wind for $2.4 bln), FST +5.6% (entered into definitive agreement to sell its natural gas properties located in the Arkoma Basin for after-tax cash proceeds of ~$185 mln), TRVN +5.1% (announced positive top-line results from Phase 2a/b study of TRV130 in acute postoperative pain), XLNX +2.5% (Board authorized a repurchase of up to $800 mln of the Co's outstanding common stock), NVAX +1.2% (announced that enrollment has begun in a Phase 2 clinical trial of its recombinant quadrivalent seasonal influenza virus-like particle vaccine candidate), TERP +1.2% (co and SunEdison (SUNE) signed an agreement to acquire First Wind for $2.4 bln; transaction immediately accretive to TerrForm), CLVS +0.5% (entered into oncology clinical trial collaboration with GlaxoSmithKline (GSK))

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: OME -19.9%, URBN -5.1%, AMCN -0.4%

Companies trading lower in after hours in reaction to news: NBS -29.8% (announced initial data from Phase 2 PreSERVE AMI clinical trial; some of three primary endpoints appear to have not been met), RMTI -4.5% (announced $55 mln proposed public offering of common stock), PF -3.6% (announced secondary offering of 20 mln shares by selling stockholders; announces concurrent repurchase of 1 mln shares of common stock), FOLD -3.1% (commenced $75 mln common stock offering), LQ -2.6% (announced that certain selling stockholders affiliated with The Blackstone Group (BX) have commenced a secondary offering of 20 mln shares of La Quinta common stock), RCPT -2.2% (announced proposed underwritten public offering of common stock)

FT : Rob Terry ousted from Quindell

Rob Terry ousted from Quindell

Quindell has responded to months of turmoil by ejecting Rob Terry, its founder and chairman, in a dramatic attempt to restore investor confidence.
The insurance claims processor, which has lost over £2bn in market value since April, will announce Mr Terry’s departure on Tuesday morning, people familiar with the situation said. The founder will remain a paid consultant to Quindell.

David Currie, the former head of investment banking at Investec, and Quindell’s highest-profile independent director, will become interim executive chairman. He will begin the search for a full-time chairman.
Finance director Laurence Moorse will step down after the 2015 annual meeting and leave a year later, while independent director Steve Scott will leave immediately.
Both men had been involved in a controversial share deal, alongside Mr Terry, that saw them in effect sell shares while announcing they were buyers.
Mr Terry was unavailable for comment. Mr Moorse and Mr Scott could not be reached for comment.
Quindell’s board will restate its confidence that the company, which is seeking to reduce insurers’ costs in processing claims, and which has contracts for the rollout of black box technology in cars, has a strong business future.
It is the second time that Mr Terry has been ejected from an insurance company that he has founded. In 2003, he was forced from the board of Innovation Group, after that company suffered a similar share price plunge to Quindell.
Mr Currie, Quindell’s new interim chairman, was an adviser to Innovation Group.
Mr Terry founded Quindell as a leisure company, buying an 18-hole golf course in Hampshire and investing in golf simulators. He transformed it into an insurance claims processor, legal services and telematics provider, which joined London’s junior market Aim via a reverse takeover in 2011.
He had wooed retail investors and large institutional clients such as M&G and Investec with the promise of building a leading insurance technology company that could one day join the FTSE 100.
However, he became a lightning rod for many attacks, as shortsellers pored over related-party transactions involving Quindell and other companies in which he was a director.
Quindell was denied permission to seek a main London listing by regulators this year.