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Asia

Overnight, most Asian equity markets nursed losses with the Japanese Nikkei 225 being the biggest laggard amid touted profit taking and strong JPY, following the index’s four-days of gains, it was weighed by Technology and Financial sectors. Meanwhile, a negative tone has also been evident across China with Chinese Actual FDI for December missing expectations. Shanghai Composite closed down 0.68% at 2309.94 while the Hang Seng currently trades down 0.35%. Finally, the ASX 200 has been today’s outperformer, closing up by 0.47%, led by Construction & Materials sector. (RANsquawk)

Best Performing Sectors in the Nikkei 225: Utilities (-0.12%), Health Care (-1.35%), Oil & Gas (-1.94%)

Best Performing Stocks in the Nikkei 225: Hitachi Zosen (+1.56%), Shionogi & Co. (+1.46%), Maruha Nichiro Holdings (+1.27%)

Worst Performing Sectors in the Nikkei 225: Technology (-3.31%), Financials (-3.26%), Consumer Services (3.07%)

Worst Performing Stocks in the Nikkei 225: Tokyo Tayemono (-5.29%), Pioneer (-5.24%), Alps Electric (-5.18%)

Chinese Banks - China's big four bank's new loans were about JPY 270bln in first 2 weeks. (Newswires)

FTSE

Tesco - Horse meat found in Tesco burgers. Sample of Tesco Everyday Value Beef Burgers showed about 29% horse meat relative to beef content. (Sky News)

Anglo American - Co.'s South African shares are down 2% following reports that its Platinum miners downed tools to protest job cuts. (Newswires)

Evraz - Co. says it has completed Raspadskaya purchase. Co. says agreed terms of 50% interest in Corber enterprises (Newswires)

Meggit - Co. selected by SNECMA for another multi-million dollar leap engine sensors package. Co. estimates agreement will generate revenues of more than USD 300mln over the life of this engine. (Newswires)

OTHER UK

Bumi - Nathaniel Rothschild and managers at Co. have been criticized in an independent inquiry after it was alleged that millions of pounds disappeared from the Co. (The Times)

Barrat - Co.'s 1H pre-tax profit GBP 45mln vs. Exp. GBP 21.6mln Y/Y. Co. says average selling price rose and expects to deliver "significant improvement" in profitability in 2013. (Newswires)

Investec - Co.'s IDR cut to BBB- from BBB by Fitch. (Newswires)

Companies paying dividend: National Grid (GBP 0.1610)

Companies going ex-dividend: Imperial Tobacco (GBP 0.8200)

DAX

Volkswagen - VW opens a new engine plant in Mexico which has M-T annual capacity of 333,000 units. Co. says investment runs at USD 550mln. (Newswires)

OTHER GERMAN COMPANIES

German Banks - Lawmakers from FDP and Merkel bloc want the government to consider Finnish central bank governor Liikanen's bank separation proposals. (Handelsblatt)

Metro - Q4 Revenue EUR 19.4bln vs. Exp. EUR 19.4bln. Co. confirms 2012 forecast of Ebit ex-items EUR 2bln vs. Exp. EUR 1.89bln. (Newswires)

CAC

Total - Two consortia led by French power group EDF and state-owned financial institution Caisse des Dépôts are the remaining bidders for Co.'s gas storage unit TIGF, according to people with direct knowledge of the matter. (WSJ) In other news, Co. made new oil discoveries in Northern Uganda (Newswires)

EADS - German government will demand a leadership role in certain projects of the Co. (Handelsblatt)

Renault - Union says 7,500 job cuts announced yesterday to reduce annual costs by EUR 396mln. Says 2012 French production at 530,000 vehicles and 2011 French production was 646,000 vehicles. (Newswires)

EDF - Co.'s 2012 nuclear output decline 3.8% from 2011, the first decline since 2009. (Les Echos)

OTHER FRENCH

Alcatel Lucent - Co. to sign network managed services contract with RCom in a deal valued in excess of USD 1bln. (Newswires)

Pan-European

Fiat - Co., Chrysler and Guangzhou Automobile enter into pact in China to produce Jeep in the country for the local market. (Newswires)

Generali - ENI's CEO Paolo Sacroni may not seek 3rd term on Generali Board. (Il Corriere della Sera)

SMI

Swatch - Co.'s CEO sees USD 1bln Harry Winston sales over a period of four to five years. (FuW)

Scandinavia

Swedish Banks - ECB's Liikanen says Swedish banks may need to be split. Says all four banks are big enough that they should be analysed to see if their operations should be separated. (SvD)

Broker Recommendations

VODAFONE CUT TO HOLD FROM BUY AT DEUTSCHE BANK

ANGLO AMERICAN CUT TO SELL FROM HOLD AT SOCGEN

ITV CUT TO NEUTRAL VS OVERWEIGHT AT JPMORGAN

CAPITAL SHOPPING RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN

ARM HOLDINGS CUT TO NEUTRAL FROM BUY AT UBS

BERKELEY GROUP RAISED TO BUY FROM NEUTRAL AT BOFAML

TAYLOR WIMPEY CUT TO NEUTRAL FROM BUY AT BOFAML

PPR RAISED TO BUY FROM UNDERPERFORM AT BOFAML

INFINEON REMOVED FROM MOST PREFERRED TECH SHRS AT UBS

FRESENIUS SE ADDED TO EUROPEAN KEY CALLS LIST AT UBS

INDITEX RAISED TO BUY FROM NEUTRAL AT NOMURA

KPN RAISED TO BUY FROM HOLD AT DEUTSCHE BANK

ERICSSON ADDED TO MOST PREFERRED TECH SHRS AT UBS

NORSK HYDRO CUT TO CONVICTION SELL FROM NEUTRAL AT GOLDMAN

EUROPEAN GENERAL RETAIL SECTOR Cut to Negative at Barclays

US

The Nasdaq was the laggard amongst its peers settling with losses of 0.46% weighed upon by continued weakness in Apple shares which extended losses for a second day. Apple shares saw losses of 3.14% on demand concern after reports yesterday reports from suppliers that they cut orders for LCD screens and other components for the iPhone 5 this quarter due to weak demand. The Dow outperformed its peers finishing in positive territory led my Microsoft who saw gains of 1.21% after news they would be working in conjunction with Facebook on their new Graph Search facility. The S&P finished flat with 6/10 sectors in the green led by Consumer Services which saw gains of 0.55%. Retailer stocks advanced after December US Retail Sales rose more than expected which was seen as a favourable sign for Q4 growth, with Tiffany, Gap and JC Penney all seeing gains of over 3%. Finally, the DJIA finished up 0.20% at 13534.89 the S&P 500 finished up 0.08% at 1471.80 and the NASDAQ 100 finished down 0.46% at 2722.98.

Best Performing Sectors in the S&P 500: Consumer Services (+0.55%), Consumer Goods (+0.42%), Oil & Gas (+0.38%)

Worst Performing Sectors in the S&P 500: Telecommunications (-0.94%), Technology (-0.58), Health Care (-0.18%)

Apple - Co. has began allowing users of its Chinese website to pay in instalments in an attempt to make their products more affordable to the world's largest computer and mobile-phone market. (Newswires)

GM - Co. says international operations margin will decrease in 2013. Co. also stated smaller margins due in part to more China competition. (Newswires)

Dell - Co. is in talks concerning a leveraged buyout. If done, would be at a price between USD 13.50 - USD 14.00 per share. (CNBC)

Boeing - Japan Airlines and All Nippon Airways have grounded all Boeing 787 Dreamliner flights today due to an ANA flight which was forced to make an emergency landing because of a faulty battery and smoke in the electric room. (Newswires)

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