>>> What to look at today - 15th of October 2014

US Market closed slighlty +ve with Russell bouncing 1.2%, JNJ -2.1% even after pusblishing better numbers, retreat in the afternoon was fueled by more pressure on healthcare sector & A sell of on crude ($82) ...Volume were still high at 940mil shares...VIX @ 22.79 -7.5% After Hours After : SURG +3.2%, INTC +2.5%, CSX +2.0%, NHTC +1.5%, LLTC-1.6% following earnings/guidance...Slowing inflation in China further justifies a 10bp drop in PBoC offered 14- day repo yield overnight, as September CPI came in below consensus at 1.6% - the lowest rate since early 2010. M/M CPI did notch higher to 0.5% from 0.2%, China, NDRC gen sec forecasted 2014 GDP to meet the 7.5% target, with Q3 data on tap for release next week....Bank of Korea cut rates for the 2nd time this year with a 25bp move to a record-low of 2.00%. The decision was expected by a narrow majority of analysts leaning in favor of more stimulus, and the decision was not unanimous as one member voted for a hold. BOK also lowered 2014 GDP forecast from 3.8% to 3.5% and 2015 GDP from 4.0% to 3.9%...Japan Econ Min Amari noted the export boosting impact from weak JPY has been less than expected and that the govt is not pursuing a weak yen policy. BOJ's

Eur$1.2648 S&P +0.07% EurosToxx -0.34% FTSE-0.32% DAX -0.17% SMI -0.53% (Pharma weighting on Index)

Macro
- Merkel Party Lawmakers Call for More Austerity, Bild Says
- Renzi Spoke to Juncker on Budget, Won’t Amend Deficit: Corriere

Keep an eye on :
- ABE SM : Obrascon Huarte Lain Sells 5% Abertis Stake for EU705m
- ASML NA : ASML Sees Solid Start to FY15, Reports 3Q Rev. Below Ests.
- BKIA SM : Blackstone, Goldman, Cerberus Bid For Bankia Homes: Confidencial
- CO FP : Casino 3Q Rev. Beats Ests.; International Offsets France
- BN FP : Danone 3Q LFL Sales Growth Beats Ests., Confirms 2014 Outlook
- ENEL IM : Italy’s Enel Signs Financing Deal With Bank of China for EU1b
- FCC SM : Koplowitz Ready to Cut FCC Stake to Below 30%, Expansion Says
- FNC IM : Finmeccanica Unit Gets EU400m China Order for 50 Helicopters
- GSK LN : Glaxo Seeks Binding Bids by Next Month for Older Drugs: Reuters
- LUX IM : Luxottica Founder Seeks to Resolve Mgmt. by Oct. 29: Corriere
- MC FP : LVMH Fashion, Wine & Spirits Organic Sales Miss Ests.
- NOVOB DC : Novo Nordisk to List IT-Unit NNIT in November, Berlingske Says
- OMV AV : OMV CEO Roiss Resigns; Gas and Refinery Units Merged
- RHK GY : Rhoen-Klinikum Offers to Repurchase Up to 65.8m Shrs
- SAP GY : IBM, SAP Agree to Cloud Computing Partnership
- SCR FP : Scor in Exclusive Talks to Buy Editions Belin Publisher: Figaro
- SHP LN : Shire Deal Seems at Risk, AbbVie Intent Unclear: Credit Suisse SHP ADR -8%
- SHP LN : Abbvie reconsidering Advising hoilders to acceptshire merger, ABV board to meet 20/10 to W/Draw, modify proposal--> SHP Inidcation in lpre market : 3900/4100 vs 5140 -20%
- STL NO : CEO Resigned to go to antoher Oil Company
- TNTE NA : TNT CEO Gunning Doesn’t Rule Out Takeover of Co., FD Reports

>>> Brokers Upgrades & Downgrades - 15the of October 2014

>>> Up
*AIR LIQUIDE RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*AVEVA RAISED TO OUTPERFORM VS NEUTRAL AT CREDIT SUISSE
*BBVA RAISED TO BUY AT DEUTSCHE BANK
*DAIMLER RAISED TO OVERWEIGHT VS UNDERWEIGHT AT BARCLAYS
*HARGREAVES LANSDOWN RAISED TO NEUTRAL VS SELL AT CITI
*HEIDELBERGCEMENT RAISED TO NEUTRAL VS SELL AT UBS
*HEINEKEN RAISED TO BUY VS SELL AT GOLDMAN SACHS
*ISRAEL CHEMICALS RAISED TO OVERWEIGHT AT HSBC
*K+S RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*LADBROKES RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*LEONI RAISED TO NEUTRAL VS UNDERPERFORM AT EXANE
*LINDE RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*SOLVAY RAISED TO OVERWEIGHT VS EQUALWEIGHT AT BARCLAYS
*VESTAS WIND SYSTEMS RAISED TO NEUTRAL VS UNDERPERFORM AT BOFAML

>>> Down
*CEZ CUT TO HOLD AT DEUTSCHE BANK
*ROSNEFT CUT TO NEUTRAL VS BUY AT BOFAML
*SABMILLER CUT TO UNDERPERFORM AT RBC CAPITAL

>>> PT Changes


>>> Initiation
*BAYER RATED OVERWEIGHT AT JPMORGAN, WAS NOT RATED
*CGG RESUMED UNDERWEIGHT AT BARCLAYS
*LUFTHANSA RATED HOLD AT CANTOR; WAS UNDER REVIEW
*RUBIS RATED NEW BUY AT BERENBERG, PT EU52

>>> Call
>> Stock
*ILIAD ADDED TO GOLDMAN CONVICTION BUY LIST; STAYS BUY
*TELENET REMOVED FROM GOLDMAN CONVICTION BUY LIST; STAYS BUY

>>> US After Hours

After Hours Summary: SURG +3.2%, INTC +2.5%, CSX +2.0%, NHTC +1.5%, LLTC -1.6% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: SURG +3.2%, INTC +2.5%, CSX +2.0%, NHTC +1.5%

Companies trading higher in after hours in reaction to news: TSPT +10.0% (declared special dividend of $0.6674 per share), ANN +6.7% (co confirmed it has entered into a non-disclosure agreement with Golden Gate), CLF +1.1% (seeing reports that co is in talks with steelmakers regarding a stake in its Bloom Lake mine), CSIQ +1.0% (Claren Road Asset Management disclosed a 5.83% passive stake in a 13G filing), CE +0.7% (announced intermediate chemistry price increases)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: LLTC -1.6%

Companies trading lower in after hours in reaction to news: STAG -2.6% (announced public offering of 5 mln shares of common stock), CUBE -1.9% (announced public offering of 6.5 mln common shares), LLTC -1.6% (announced planned retirement of Paul Coghlan and implements CFO transition plan; Donald Zerio to be promoted to CFO; co also reported earnings), ESPR -1.4% (announced proposed public offering of $85 mln of common stock), PSTI -1.4% (filed for $200 mln mixed securities shelf offering)

>>> Asian Update

Asian Market Update: China CPI slows to near 5-year lows; BOK cuts rates to record low 2%

***Economic Data*** - (CN) CHINA SEPT CPI Y/Y: 1.6% V 1.7%E (lowest level since Jan 2010) - (CN) CHINA SEPT PPI Y/Y: -1.8% V -1.6%E (31st straight month of decline) - (KR) BANK OF KOREA (BOK) CUTS 7-DAY REPO RATE BY 25 BPS TO 2.00% (AS EXPECTED); New record low and 2nd rate cut of 2014 - (KR) SOUTH KOREA SEPT UNEMPLOYMENT RATE: 3.5% V 3.5%E - (AU) AUSTRALIA OCT WESTPAC CONSUMER CONFIDENCE INDEX INDEX: 94.8 V 94.0 PRIOR; M/M: 0.9% V -4.6% PRIOR - (AU) AUSTRALIA SEPT NEW MOTOR VEHICLE SALES M/M: +2.9% V -1.8% PRIOR; Y/Y: +0.8% V -3.5% PRIOR

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 +0.2%, S&P/ASX +0.4%, Kospi flat, Shanghai Composite -0.2%, Hang Seng +0.5%, Dec S&P500 -0.1% at 1,872

***Commodities/Fixed Income*** - Dec gold -0.3% at $1,227/oz, Nov crude oil -0.1% at $82.15/brl, Dec copper flat $3.08/lb - (CN) China Ministry of Finance (MoF) sells 10-yr bonds at 3.78% - JGB: (JP) Japan MoF sells ¥639.7B in 1.7% (1.7% prior) 30-yr notes; Avg yield: 1.633% v 1.679% prior; Bid to cover: 2.59x v 3.57x prior

***Market Focal Points/Key Themes/FX*** - Slowing inflation in China further justifies a 10bp drop in PBoC offered 14-day repo yield overnight, as September CPI came in below consensus at 1.6% - the lowest rate since early 2010. M/M CPI did notch higher to 0.5% from 0.2%, while non-food CPI slowed to 1.3% from 1.5%. Wholesale inflation drop was slightly more than expected and marked the 31st consecutive month of y/y decline. One analyst noted that CPI will start to recover going into year-end given the lower inventory of pork supplies on year-ago basis. Separately in China, NDRC gen sec forecasted 2014 GDP to meet the 7.5% target, with Q3 data on tap for release next week.

- Bank of Korea cut rates for the 2nd time this year with a 25bp move to a record-low of 2.00%. The decision was expected by a narrow majority of analysts leaning in favor of more stimulus, and the decision was not unanimous as one member voted for a hold. BOK also lowered 2014 GDP forecast from 3.8% to 3.5% and 2015 GDP from 4.0% to 3.9%. CPI forecast was also cut from 1.9% to 1.4%, as central bank noted price pressure has been weaker than expected. BOK Gov Lee added deflation is not imminent and core CPI would return to 2%, noting the 2% policy rate is low enough to support economic recovery. Earlier, South Korea unemployment rate came in as expected at 3.5%.

- Australia Oct Westpac consumer confidence index was marginally higher, as bank economist cited improved labor market and few signs of any further deterioration. A report of Fitch warned that a strong rise in home prices and growth in investor and interest-only mortgage loans in 2013 and 2014 have raised the risks in the Australian banking system, but the likelihood of significant losses in the housing books remains low. Rio Tinto shares were up marginally in Sydney after its quarterly production figures, with Q3 output up 5% q/q and 12% y/y. Mining giant also affirmed 2014 iron ore output at 295M tons along with production of aluminium, cut forecast output of coking coal, but raised expected output target for copper.

- Japan Econ Min Amari noted the export boosting impact from weak JPY has been less than expected and that the govt is not pursuing a weak yen policy. BOJ's Amamiya however stated weak JPY has positive impact on exports and is generally positive as long it matches fundamentals. Former BOJ chief economist called on the policy board to drop the 2-yr inflation time frame but keep the 2% target.

- USD was modestly firmer across the majors for the 2nd consecutive day. USD/JPY traded up about 40pips from the lows as high as 107.40, while EUR/USD fell some 30pips toward 1.2620. AUD/USD bounced about 40pips from the lows following China inflation data to a high of 0.8720 on higher likelihood of more stimulative policy from China.

***Equities*** US markets: - ANN: Enters into a non-disclosure agreement with Golden Gate Capital; +8.2% afterhours - INTC: Reports Q3 $0.66 v $0.65e, R$14.6B v $14.4Be; +2.6% afterhours - CSX: Reports Q3 $0.51 v $0.47e, R$3.22B v $3.16Be; +2.4% afterhours - LTC: Reports Q1 $0.53 v $0.54e, R$371M v $372Me; -1.8% afterhours - ABV: AbbVie confirms its intention to reconsider recommendation of $54B deal to purchase Shire (SHP.UK); -2.1% afterhours; ADRs of SHPG -8.0%

Notable movers by sector: - Consumer Discretionary: Air China 601111.CN +9.9%, China Eastern Airlines 600115.CN +9.0%, Japan Airlines 9201.JP +4.4% (crude oil -5% today); Bic Camera 3048.JP +3.6% (FY14 results); Chongqing Changan Automobile 000625.CN +1.6% (9M guidance); Guangdong Yihua Timber Industry 600978.CN +9.9% (to acquire hotel industry supplier); TABCorp TAH.AU +3.7% (Q1 results) - Materials: Rio Tinto RIO.AU +0.5% (Q3 production results); OZ Minerals OZL.AU +3.0% (Q3 production results); Lynas LYC.AU -4.8% (Q1 results); Showa Denko 4004.JP +1.5% (press reports on 9M results) - Industrials: Inner Mongolia Hotision & Monsod Drought Resistance Greening 300355.CN +2.6% (9M guidance)

(BFW) Rhoen-Klinikum Offers to Repurchase Up to 65.8m Shrs

Rhoen-Klinikum Offers to Repurchase Up to 65.8m Shrs
2014-10-14 19:44:49.455 GMT


By Jim Silver
Oct. 14 (Bloomberg) -- Rhoen-Klinikum offers EU25.18/shr.
* Shareholders can accept repurchase offer of 10 shrs for
every 21 shrs they own; tender rights can be sold
* Acceptance period Oct. 16-Nov. 14

Link to Statement:NSN NDG97I6K50Y2 <GO>
Link to Company News:RHK GR <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:
Jim Silver at +1-212-617-7342 or
jsilver@bloomberg.net

>>> US Close Dow-0,04% S&P+0,16% Nasdaq+0,32% Russell

Closing Market Summary: S&P 500 Snaps Three Day Losing Streak

The stock market snapped its three-day skid with small caps pacing the Tuesday rebound. The Russell 2000 jumped 1.2% while the S&P 500 added 0.2% with eight sectors ending in the green. However, the advance masked an afternoon slide from intraday highs that caused the Dow to end flat.

Equity indices began the day with slim gains after investors received a trio of quarterly reports from the financial sector (+0.5%). Citigroup (C 51.47, +1.57) was a notable standout, surging 3.2%, in reaction to its better than expected results combined with news indicating the company will exit its consumer business in 11 markets around the world. However, the broader sector could not pull away from the S&P 500 as JPMorgan Chase (JPM 57.99, -0.17) and Wells Fargo (WFC 48.83, -1.37) weighed. Shares of JPM lost 0.3% following a bottom-line miss while Wells Fargo fell 2.7% after reporting in-line results.

Although the financial sector contributed to an opening boost, the market did not build on its early gain until the Russell 2000 climbed above its opening high. That strength emboldened bargain hunters who rushed into recently-battered areas like transports and chipmakers.

However, the intraday strength began fading shortly after noon ET with selling activity accelerating as crude oil plunged into the pit close. The energy component dove nearly 5.0% to $81.81/bbl, dragging the energy sector (-1.2%) down with it. The sharp drop sent oil to levels last seen in mid-2012, while the energy sector extended its October loss to 10.9%.

The afternoon retreat from highs was also fueled in part by weakness in the health care sector (-0.8%). The group tried to stage an intraday bounce, but was held back by Johnson & Johnson (JNJ 97.01, -2.11), which fell 2.1% despite beating earnings estimates and hiking its guidance.

Even though the S&P 500 gave back its entire advance, the areas that displayed strength in the morning maintained their gains. Transport stocks underpinned the industrial sector (+1.3%) with the Dow Jones Transportation Average climbing 2.6%. JetBlue Airways (JBLU 10.23, +0.82) soared 8.7% to lead the way while shipper Kirby (KEX 99.63, -0.20) was the lone decliner.

Elsewhere, the relative strength among chipmakers sent the PHLX Semiconductor Index higher by 1.9%. Skyworks (SWKS 48.91, +3.59) was the standard-bearer, rallying 7.9% after boosting its guidance while Intel (INTC 32.14, +0.67) rose 2.1% ahead of its quarterly report. For its part, the top-weighted technology sector (+0.3%) ended a bit ahead of the broader market.

Also of note, the Dollar Index (85.81, +0.28) spent the day in positive territory while Treasuries finished just below their overnight highs. The 10-yr note added 24 ticks to send its yield lower by nine basis points to 2.20%.

Participation remained on the strong side with more than 940 million shares changing hands at the NYSE floor.

Tomorrow, the weekly MBA Mortgage Index will be reported at 7:00 ET, while the Retail Sales report for September (Briefing.com consensus -0.2%), September PPI (consensus 0.1%), and October Empire Manufacturing (expected 20.4) will all be released at 8:30 ET. Also of note, the Business Inventories report for August (consensus 0.4%) and the Fed's Beige Book for October will cross the wires at 10:00 ET and 14:00 ET, respectively.
  • S&P 500 +1.6% YTD 
  • Nasdaq Composite +1.2% YTD 
  • Dow Jones Industrial Average -1.6% YTD 
  • Russell 2000 -8.8% YTD

WSJ : France’s Iliad Must Build at Home After Scrapping T-Mo

France’s Iliad Must Build at Home After Scrapping T-Mobile Bid Telecom Operator Will Need to Invest in More Spectrum, Network Capacity to Compete

Iliad ILIAY -9.09% will need to redraw the map in France now that it has dropped plans for U.S. expansion.

Abandoning a costly bid for T-Mobile US TMUS -0.19% leaves the French telecom operator with more financial flexibility to try to win market share domestically. Investors welcomed the decision, pushing the stock up about 10% Tuesday after Iliad said a new proposal to buy 67% of T-Mobile US at $33 a share was rejected by majority owner Deutsche Telekom. DTE.XE -0.96%

But Iliad’s shares are still down about 15% this year. The road back home also has its challenges.

Iliad’s first task will be to bolster its mobile market share, particularly among top-end subscribers. The company has gained about a 12% market share since it began offering mobile services two years ago, thanks to cutthroat pricing tactics. Its future success, however, will be more dependent building out its 4G network to attract higher-paying customers.

Iliad has thus far been sharing Orange’s 3G network under a wholesale agreement, but that is set to expire in 2018, with certain services to be discontinued as early as 2016. France’s telecom regulators have signaled they aren’t in favor of the two companies renewing the agreement, putting more pressure on the upstart to roll out its own network and add more spectrum to support growth.

Iliad also needs to maintain, if not improve, its position in broadband in the face of mounting competition. This year, rival Bouygues EN.FR +4.59% Telecom lowered prices for broadband customers; it also announced a partnership to offer Netflix services on set-top boxes as part of its two-year plan to gain fixed-line market share.

Consolidation in the French market would undoubtedly help Iliad. But Bouygues and Iliad have tried and failed to strike a deal before. Bouygues has pledged to markedly improve free cash flow by 2016; if the company stumbles, that could kick-start consolidation talks again.

For now, Iliad shouldn’t be distracted from shoring up its position domestically. The company is trading at about 8.4 times 2014 earnings before interest, tax, depreciation and amortization compared with about five times for Bouygues and Orange, according to FactSet. That assumes a rate of growth that may prove difficult to deliver as the company develops beyond its role as a cut-price disrupter in France’s telecom market.

With T-Mobile US in the rearview mirror, Iliad still has plenty of potholes to navigate.