(BofA-ML) The Flow Show - No Fear of the FED - Massive $20bn inflows to equity f

* Asset Class Flows
- Equities: biggest weekly inflows YTD ($20.1bn) (note $23bn ETF inflows vs $3bn mutual fund outflows)
- Bonds: $6.5bn inflows (11 straight weeks)
- Precious metals: $1.0bn outflows (3 straight weeks)

* Equity Flows
- Europe: $5.4bn inflows (10 straight weeks) ($1.4bn into HEDJ ETF) – the crowded trade
- Japan: $0.6bn inflows (4 straight weeks)
- EM: $2.7bn outflows (3 straight weeks)
- US: $14.1bn inflows (first inflows in 5 weeks) (note divergence between $18bn
- ETF inflows and $4bn MF outflows)

* Fixed Income Flows
- Second straight week of outflows from EM debt funds ($0.4bn)
- 36 straight weeks of outflows from bank loan funds ($0.2bns)
- Modest $0.3bn inflows to HY bond funds
- 65 straight weeks of inflows to IG bond funds ($5.1bn)
- Chunky $1.2bn inflows to govt/tsy funds (largest in 6 weeks)
- 22 straight weeks of inflows to MBS funds ($0.3bn)
- $0.3bn inflows to TIPS funds (largest in 5 weeks)

(BFW) Solvay ‘Fundamentally’ Undervalued, 2015 Top Pick at Barclays

Solvay ‘Fundamentally’ Undervalued, 2015 Top Pick at Barclays
2015-03-20 07:51:14.149 GMT


By Chiara Remondini
(Bloomberg) -- Solvay PT raised to EU154 vs EU135 at
Barclays (overweight), says co. is both growth and
transformation story, according to note.
* Brokerage says quality of portfolio not reflected in shr
price, more focused co. may lead to higher valuatio
* P/E multiple investors willing to pay for Solvay has
been increasing, expects trend to continue
* Sees strong earnings momentum this yr: Silica, Specialty
Plastics, Soda Ash to probably be main earnings drivers
in 2015
* 2016 should be another yr of “double-digit” earnings
growth
* Barclays says co. making progress in optimizing
portfolio, “more to come”
* Personal care, high performance plastics potential areas
for M&A
* Personal care, high performance plastics potential areas
for M&A</li></ul>
* NOTE yday: Solvay, Ineos find buyer for plants blocking
merger in PVC

For Related News and Information:
First Word scrolling panel: FIRST<GO>
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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net

>>> Pirelli in advanced talks with China Chemical Corporation over stake sale

Pirelli in advanced talks with China Chemical Corporation over stake sale

Pirelli, the listed Italian tyre company, is in negotiations to sell a stake to China Chemical Corporation (CCC) Italian language daily Il Messaggero reported.

The negotiations between parties are at an advanced stage with some details on stake sizes, financial questions and governance still to be decided, the unsourced article said. CCC will take its stake in Pirelli via its subsidiary Aeolus Tyre. The report said Aeolus would almost certainly take a 51% stake in Pirelli.

The boards of CCC and Pirelli will meet on the weekend or on Monday 23 March at the latest to discuss the dossier, the report said. A banking consortium headed by Unicredit is likely to provide financing of EUR 3.6bn for the deal to go ahead, it added. Pirelli would also receive a EUR 350m loan. The report said a public offer itself would be undertaken by a specially constituted vehicle registered in Luxembourg.

An unsourced report in Il Corriere della Sera claimed that Lazard has drawn up the operation.

The the plan is to relist Pirelli in the next four years, but only its car tyre operations. The report said Pirelli's truck tyre operations would instead be spun off into a newco that would also contain the operations of Aeolus Tyre.

A report in the Italian language Carlo Festa blog cited unspecified rumours claiming that Rosneft, presently Pirelli's largest shareholder, is looking to exit because of the pressure of sanctions. Rosneft would continue to maintain a small stake in Pirelli, it added.

The report said a delegation from Camfin, the holding company that controls Pirelli, is presently in Moscow negotiating Rosneft's exit.

Source Il Messaggero, Il Corriere della Sera, Carlo Festa Blog

>>> What to look at today - 20th of March 2015

Dow-0,65% S&P-0,49% Nasdaq+0,19% Russell+0,21% VIX @ 14.07 +0.72%
US Market Closed Mixed with major Index lower and Tech higher,dovish FOMC policy statement pressured the greenback, but the Dollar Index (99.23, +0.67) wasted no time, stringing together a swift comeback. The index added 0.7% today and returned to Tuesday's low. Notably, the euro retraced the bulk of yesterday's move, returning below 1.0650 versus the dollar, the dollar strength weighed on crude oil, sending the energy component lower by 2.5% to $45.50/bbl. In turn, this kept the energy sector (-1.7%) near the bottom of the barrel while the other commodity-related sector—materials (-1.7%)—finished just behind energy. Steelmakers kept the sector pressured after Nucor (NUE 46.11, -3.16) cut its guidance well below analyst estimates. Shares of NUE tumbled 6.4%, among cyclical sectors, industrials (-0.7%) and financials (-1.0%) struggled while consumer discretionary (-0.2%) and technology (-0.2%) displayed relative strength. volume were light @715mil shares. US After Hours ENVI +31.2%, CTRP +8.5%, MFRM +5%, NKE +4.5%, AKS -6.9% following earnings/guidance PRTA +39.4% on +ve Phase 1...In Japan, BOJ Gov Kuroda reiterated CPI will likely reach 2% in or around FY15, even though the central bank further scaled back its inflation outlook in its policy meeting earlier this week. Meeting minutes for last month saw board members holding a similar opinion, even though the MOF representative on the board stopped urging that the time-based inflation objective is maintained. Some members noted an increase in volatility in the JGB market, and a few questioned sustainability of JGB purchases at current pace. Separately, a Nikkei report in late US session speculated that the cabinet office (govt) will raise its monthly economic assessment for the first time since July 2014 when the report is published on Monday. Japan has held assessment unchanged since November, when it was lowered following another round of QE by the central bank. EU leaders and Greece PM Tsipras held last-ditch talks to find common ground related to Greek reforms-for-aid plans amid a notable deterioration of good will on both sides and also a decline in investors confidence over a positive outcome for Athens in recent days. Both sides appear to have been pleased with today's talks - PM Tsipas said the relief process is back on track after today's meeting, as all sides agreed to restore financing of Greek economy; Germany's Merkel noted the basis of reforms is still grounded in the Feb 20th decision, Greece will present a more detailed and adequate list of reforms planned in the next few days, and that no funds will be paid to Athens until the review of Greek reforms has been concluded. EUR/USD rose to session highs just shy of the $1.07 handle following the EU statement.
Nikkei +0.43% Hang Seng -0.24% Shanghai +0.77%

RUB $60.1270 WTI $43.65 (-0.71%) Brent $54.30 (-0.70%) EURCHF 1.0556 CHF 0.9895

EUR$ 1.0669 S&P +0.18% EurosToxx +0.19% Dax +0.26% SMI +0.27%

Macro
- Greece’s Tsipras Says Talks With Euro Area Back on Track
- Carlyle Group Raises $2.5 Billion for International Energy Deals
- EU Says Russia Sanctions Duration Should Be Linked to Minsk Deal

Keep an eye on :
- ATC NA : Altice could sell Oni next month to facilitate its PT Portugal acquisition - Diario Economico
- BPI IM : BPI May Make Non-Binding Proposal for Novo Banco Today: Diario
- CRG IM : Banca Carige Raises Maximum Shr Sale Size to EU850m
- CU FP : Fosun Eyes Deals in North America After Thomas Cook, Club Med
- DBK GY : Deutsche Bank Shareholders Urging Sale of Postbank: FT
- EDF FP : France Wants Better Cost Control at EDF, Les Echos Says
- FCC SM : FCC Drops EU1.6B Algeria Contracts, El Confidencial Says
- GSK LN : GSK/THRX’s Breo Needs Post-Marketing Safety Study: Panel
- HAV FP : Havas 2014 Net EU140m vs Est. EU144m
- LG FP : Lafarge, Holcim Agree New Deal Ratio of 9 Shares for 10 Lafarge
- LHA GY : Lufthansa Pilots Union to Extend Strike to Saturday, Union Says
- ORA FP : Orange to Invest EU500m in Romania by 2018, ZF Reports
- PHIA NA : KKR, CVC Said to Near Deal for Philips Lighting Component Unit
- PC IM : Pirelli in advanced talks with China Chemical Corporation over stake sale
- RIG VX : *TRANSOCEAN CUT TO JUNK BY S&P
- RYA LN : Ryanair Says It Hasn’t Considered Any Transatlantic Project
- SAL IM : Salini Impregilo 2014 Net EU93.8m vs EU104.8m Y/y
- SKB GY : Koenig & Bauer Returns to Net Profit in 2014; Plans no Dividend
- TIT IM : Telecom Italia to Offer Up to EU2b in Equity-Linked Bonds
- UHR VX : Swatch’s Certina Sees Single-Digit Sales Growth This Year: AWP
- ZC FP : Zodiac Sees 1H Current Oper. Income Hurt by Seats Problems

>>> Altice could sell Oni next month to facilitate its PT Portugal acquisition

Altice could sell Oni next month to facilitate its PT Portugal acquisition

Altice could divest Portuguese telco Oni in April to speed up its acquisition of PT Portugal, reported Diario Economico. The Lusophone publication cited Altice CEO Dexter Goei as saying Oni could be sold next month to avoid potential regulatory hurdles to the French telco's acquisition of PT Portugal.

Altice has already indicated it will sell Cabovisao, the Portuguese cable operator, to avoid an investigation by the AdC Portuguese Competition Authority into the deal.

Diario Economico

>>> Brokers Upgrades & Downgrades - 20th of March 2015

>>> Up
*DSM RAISED TO OVERWEIGHT VS NEUTRAL AT JPMORGAN
*ENEL RAISED TO BUY VS ADD AT INVESTEC
*EVONIK INDUSTRIES RAISED TO OVERWEIGHT AT JPMORGAN
*MICHAEL PAGE UPPED TO OVERWEIGHT VS EQUALWEIGHT: MORGAN STANLEY
*PUMA RAISED TO HOLD VS SELL AT BERENBERG
*SHIRE RAISED TO OUTPERFORM AT SANFORD BERNSTEIN
*STMICRO RAISED TO EQUALWEIGHT VS UNDERWEIGHT: MORGAN STANLEY
*WILLIAM HILL RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN

>>> Down
*BANCA POPOLARE DI MILANO CUT TO NEUTRAL VS BUY AT NOMURA
*BOUYGUES CUT TO NEUTRAL VS BUY AT BOFAML
*DELTA LLOYD CUT TO UNDERWEIGHT VS NEUTRAL AT HSBC
*ELECTROLUX CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN
*ERICSSON CUT TO EQUALWEIGHT VS OVERWEIGHT AT MORGAN STANLEY
*FORTUM CUT TO SELL VS HOLD AT BERENBERG
*HENNES & MAURITZ CUT TO NEUTRAL VS OUTPERFORM: CREDIT SUISSE
*O’KEY GROUP CUT TO SELL VS NEUTRAL AT UBS
*STANDARD CHARTERED CUT TO SELL VS HOLD AT INVESTEC
*ZODIAC AEROSPACE CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN

>>> PT changes


>>> Initiation
*FORTUM CUT TO SELL VS HOLD AT BERENBERG

>>> Call

(BFW) Norway’s Domestic Pension Fund Says Oil Bonds Now Pay for Risk

Norway’s Domestic Pension Fund Says Oil Bonds Now Pay for Risk
2015-03-20 02:10:00.679 GMT


By Jonas Cho Walsgard
(Bloomberg) -- Government Pension Fund Norway, the domestic
counterpart to the country’s $850b wealth fund, said bonds
issued by oil-related companies now provide compensation for the
risk of credit losses.
* The bonds, which are mostly high-yield, have been pummeled
as oil prices slumped last year, driving the yield spread
investors demand versus benchmarks wider; now, some
investors are coming back, and the DNB High Yield Norway
Total Return Index has risen 5% from a 15-month low in
February
* Link to full story


For Related News and Information:
Top Nordic Stories: TOP NORD<GO>

To contact the reporter on this story:
Jonas Cho Walsgard in Oslo at +47-22-00-8212 or
jchowalsgard@bloomberg.net
To contact the editors responsible for this story:
Veronica Ek at +46-8-610-0722 or
vek@bloomberg.net
Stephen Treloar

(BFW) Lafarge, Holcim Agree New Deal Ratio of 9 Shares for 10 Lafarge

BN 03/20 06:03 *LAFARGE, HOLCIM SEE FINALIZATION IN JULY
BN 03/20 06:03 *LAFARGE, HOLCIM: SOME SHAREHOLDERS HAVE BACKED NEW TERMS
BN 03/20 06:02 *LAFARGE, HOLCIM TO GIVE 1 NEW SHARE FOR 20 HELD IN STOCK DIV
BN 03/20 06:02 *LAFARGE, HOLCIM PLAN DIVIDEND TO BE PAID IN STOCK
BN 03/20 06:01 *LAFARGE, HOLCIM: REITZLE, LAFONT TO BE NON-EXEC CO-CHAIRMEN
BFW 03/20 06:01 *LAFARGE, HOLCIM AGREE NEW MERGER TERMS
BN 03/20 06:01 *LAFARGE, HOLCIM AGREE NEW RATIO: 9 SHARES FOR 10 LAFARGE
BN 03/20 06:00 *LAFARGE, HOLCIM AGREE NEW RATIO: 9 SHARES FOR 10 LAFARGE
BN 03/20 06:00 *LAFARGE, HOLCIM AGREE NEW MERGER TERMS
Lafarge, Holcim Agree New Deal Ratio of 9 Shares for 10 Lafarge
2015-03-20 06:08:41.465 GMT


By Cormac Mullen
(Bloomberg) -- Lafarge, Holcim say new CEO will be proposed
with appointment expected to be communicated in due course.
* Say Wolfgang Reitzle and Bruno Lafont will be non-executive
Co-Chairmen of the Board
* Say new company will announce a post-closing scrip dividend
of 1 new LafargeHolcim share for each 20 existing shares
* Say certain key shareholders of both companies have
confirmed their support for the revised merger terms
* Say Holcim shareholder resolutions required to implement
combination to be presented at shareholder meeting on or
about May 7
* Expect transaction to close in July

Link to Company News:{HOLN VX <Equity> CN <GO>}
Link to Company News:{LG FP <Equity> CN <GO>}
Link to Company News:{CRH ID <Equity> CN <GO>}

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

To contact the editor responsible for this story:
Cormac Mullen at +353-1-523-9526 or
cmullen9@bloomberg.net

>>> US After Hours : ENVI +31.2%, CTRP +8.5%, MFRM +5%, NKE +4.

After Hours Summary: ENVI +31.2%, CTRP +8.5%, MFRM +5%, NKE +4.5%, AKS -6.9% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: ENVI +31.2%, CTRP +8.5%, MFRM +5%, NKE +4.5%, MBLX +3.8%, NWY +3.1%, EXA +2.5%, RALY +2.3%, ISNS +1.1%, GMAN +0.9%

Companies trading higher in after hours in reaction to news: PRTA +39.4% (announced positive results from a Phase 1 single ascending dose study of PRX002, a monoclonal antibody for the potential treatment of Parkinson's disease and other related synucleinopathies), EXA +2.5% (Soros Fund discloses 9.15% passive stake in 13G filing), AVEO +2.0% (regained compliance with Nasdaq's minimum bid listing rule)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: AKS -6.9%, ZFGN -0.9%, CERU -0.2%, JYNT -0.1%

Companies trading lower in after hours in reaction to news: BIOD -8.7% (filed for $30 mln offering of common stock), ACUR -2.9% (disclosed that it was afforded an additional 180 calendar day period to regain compliance with the minimum bid price requirement of $1.00 per share