(BFW) Bundesbank Says German Economy to Lack Momentum for Rest of 2014

Bundesbank Says German Economy to Lack Momentum for Rest of 2014
2014-11-17 11:00:00.8 GMT


By Alessandro Speciale
Nov. 17 (Bloomberg) -- “Gloomier expectations and stagnant
orders point to economic development lacking momentum at least
until the end of 2014,” Bundesbank says in monthly report
published today
* “The expansionary path of the German economy has
fundamentally flattened since the start of the year”
* “Cyclical slowdown comes from the manufacturing industry”
* “Positive effects could come from other external factors
such a considerable depreciation of the euro and a steep
fall in oil prices”
* “The dynamism of the domestic economy can as before be
supported by private consumption, because of the good
condition of the labor market, strong immigration and
significant wage increases”
* Outlook for public finances next year is for a “limited”
deficit in consequence of probable higher social spending
* “A still-high debt ratio and unfavorable demographic
developments also speaks for Germany’s pursuit of a
structurally balanced budget in the medium term”
* A debt-financed German stimulus package would not be
“productive” and infrastracture investment can be financed
without new debt
* NOTE: German and French Economies Rebound as Italian Slump
Persists NSN NF0W1I6JTSE8<GO>


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To contact the reporter on this story:
Alessandro Speciale in frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net
To contact the editor responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
fobrien@bloomberg.net

>>> FT conf : shire is talking

*SHIRE'S ORNSKOV SAYS PHARMA MERGERS TO CONTINUE *SHIRE CEO SEES M&A CONTINUING, ESPECIALLY IN SPECIALTY PHARMA *SHIRE CEO: SCALE, EFFICIENCY, LACK OF INNOVATION DRIVING DEALS *SHIRE SAYS M&A ALSO DRIVEN BY LOW RATES, EAGER LENDERS

(BFW) SABMiller May Announce a Soft Drinks Deal Soon, Citi Says

SABMiller May Announce a Soft Drinks Deal Soon, Citi Says
2014-11-17 09:32:13.364 GMT


By Heather Burke
Nov. 17 (Bloomberg) -- SABMiller 1H results were
disappointing, a soft drinks deal may be announced soon, Citi
says in note (neutral).
* Soft drinks are becoming a more strategic part of
SABMiller’s business as tougher to expand beer sales,
especially in emerging mkts, there are fewer future merger
opportunities, its closer relationship with Coke makes a
possible purchase of SABMiller by AB InBev trickier
* AB InBev/SABMiller deal most likely beer M&A
* SABCO, one of Coca-Cola’s biggest African bottlers, may be a
good fit for SABMiller
* Cuts PT to 3,800p vs 3,900p
* NOTE Nov. 12: SABMiller, Coca-Cola to Form New Company in
Africa: Sky News
* NOTE Nov. 14: AB InBev CEO Says He’s Open to Making
Acquisition at Right Price

For Related News and Information:
First Word scrolling panel: FIRST<GO>
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To contact the reporter on this story:
Heather Burke in London at +44-20-7673-2044 or
hburke2@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net

>>> FCC shareholders Koplowitz and Soros told any shareholder pact would require

FCC shareholders Koplowitz and Soros told any shareholder pact would require full takeover offer – report (translated)

FCC shareholders Esther Koplowitz and George Soros have been told any shareholder pact they sign will require the launch of a takeover bid, El Confidencial reported yesterday, 16 November.

The CNMV, the Spanish market regulator, has reportedly opposed a plan drawn up by the parties to enter into a shareholders’ agreement that would, in effect, protect FCC from any hostile takeover bid, the report said, citing people with knowledge of the situation.

If the shareholders go through with the plan, they will be required to launch a full takeover offer at a significantly higher price than FCC’s current share price so as not to prejudice the interests of minority shareholders, the report said.

It was reported on 14 November that Soros had reached an agreement with B-1998, Koplowitz’s investment vehicle, to begin exclusive talks to acquire Koplowitz’s subscription rights in a share sale.


Source El Confidencial

FT : FCA urged to radically overhaul fund industry

The Financial Conduct Authority has been urged to radically reform how the asset management industry operates by an influential panel set up to advise the watchdog on its policies.
In a damning assessment of the industry, the Financial Services Consumer Panel has urged the FCA to overhaul how fund managers charge investors, as well as strengthen the legal duties asset managers have towards their clients in order to prevent overcharging and short-termism.

The fact that fund managers often have no idea what trading costs, among other charges, they are passing on to investors without their knowledge is of particular concern to the panel, an independent body that represents the interests of consumers.
“Even institutional investors of multibillion-pound pension funds may not know the full costs of investing,” the panel said. As an example it cited a recent FTfm interview with Railpen, the £20bn pension scheme, which took months to work out that the headline fees it paid to fund managers were only a fifth of total costs.
“Retail investors are particularly badly placed. They lack the market clout of institutional investors,” the panel said.
The consumer body wants the regulator to force fund managers to disclose all costs charged to investors. The panel has also recommended that the FCA incentivises fund managers to control the costs being passed on to savers by introducing a single investment management charge.
All other costs and charges incurred by the fund manager, including transaction costs, would be paid for directly by the fund company and reflected in the single charge.
“The panel fully understands that such a radical proposal would require structural changes in the industry and would likely be challenged by investment firms. However we believe a single charge merits consideration because other options are not working,” it said.
The panel’s suggestions have proved effective in the past. In 2012 it argued that the FCA should be able to “name and shame” poorly performing companies. The following year the regulator was given new powers to publish details of disciplinary action it had taken against companies.
The FSCP’s findings are based on two studies that it commissioned from Rajiv Jaitly, a highly regarded risk consultant, and David Pitt-Watson, executive fellow at the London Business School and former director of UK fund house Hermes.
The panel also flagged concerns about managers concentrating on short-term performance, poor governance of retail funds and the emergence of “closet tracking”, whereby funds charge high active fees but in practice only mimic the composition of an index.
The panel has recommended that the FCA impose a fiduciary duty on investment managers to act in the best interests of their customers. Currently treating customers fairly is a regulatory principle, but not a legal duty.
A spokesperson for the FCA said: “We welcome the panel’s work. The recommendations around the disclosure of costs and charges are a useful contribution to the current debate on delivering transparency of transaction costs in the workplace pensions market.”
Robert Higginbotham, head of global investor services at T Rowe Price, the US fund house, warned that placing the onus for paying unexpected transaction costs on fund companies could backfire.
“I don’t want fund managers doing anything apart from trying to get the best returns for clients. If some of the activities they engage with in order to do that have a [profit and loss] implication, that creates room for disincentives,” he said.