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EUROPEAN EQUITY OPENING NEWS: BT faces new constraints on its ability to outbid BskyB for sports rights

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ASIA 

Asian equity markets traded mixed amid light news flow and a lack of tier-1 macroeconomic data, with the Nikkei (-0.1%) finishing flat although on track for a fifth weekly gain after closing at near a 5-month high yesterday. Elsewhere, there was notable underperformance in the Shanghai Comp (-0.17%) which is poised for its biggest weekly loss in 2 months, amid concerns that IPO resumptions will divert funds from existing equities. The Hang Seng finished up 0.22%. 

Best Performing Sectors in the Nikkei 225: Health Care (+0.46%), Financials (+0.43%), Consumer Discretionary (+0.22%) 

Worst Performing Sectors in the Nikkei 225: Materials (-0.93%), Energy (-0.81%), Information Technology (-0.55%) 

FTSE 

Diageo – Co. has succeeded in taking majority-control of United Spirits, upping its stake to around 55% from 28.8%, according to two people familiar with the deal. (FT) 

Lloyds – Co. says TSB IPO price set at GBP 2.60 TSB ordinary shares, about 30% of offer allocated to retail investors. (BBG) 

Shire - AbbVie (ABBV) confirmed that it made an indicative offer to the Co. of GBP 46.26/Shire Shr. However, Abbvie says the Co. rejected the offer and talks between the two Co.’s are off. (BBG) 

Gambling companies - A group representing well known gambling companies, including bet365, 32RED and Victor Chandler, is taking legal action against the Government over a new licensing regime expected to come into force later this year, alongside a 15pc tax on online bets. (Telegraph) 

BT – Co. faces new constraints on its ability to outbid BskyB for sports rights after regulators proposed controls on its superfast broadband profit margins to ensure competition. (Telegraph) 

OTHER UK COMPANIES

Debenhams – Q3 like-for-like sales -1% vs. Exp. -1%, gross margin guidance and outlook for FY unchanged. Summer sale starting two weeks later than last year. Strategy to refocus promotional activity delivering higher full price sell-through. (BBG/RTRS) 

UK retailers – John Lewis weekly sales rise 4.6% and John Lewis stores weekly sales rise 4.6%. (BBG) 

Companies paying dividend: FTSE 250: Computacenter PLC (GBP 0.137), Howden Joinery Group PLC (GBP 0.050), Provident Financial PLC (GBP 0.600), Ted Baker PLC (GBP 0.269), Xaar PLC (GBP 0.061) 

BROKER RECOMMENDATIONS (BBG/RTRS) 

ROLLS-ROYCE RAISED TO HOLD VS SELL AT SOCGEN 

MAN GROUP RAISED TO NEUTRAL VS SELL AT CITI 

PREMIER OIL REMOVED FROM MOST PREFERRED OILS AT BOFAML 

AFREN ADDED TO MOST PREFERRED OILS AT BOFAML 

DAX 

Deutsche Bourse – In related sector news, France’s Euronext says 46.5mln shares allotted to global offering with price at EUR 20.00/shr. Euronext to start trading today. (BBG) 

Siemens  – Co. and Mitsubishi Heavy have raised their cash component for Alstom (ALO FP) by EUR 1.2bln to EUR 8.2bln, while the valuation of the Alstom’s (ALO FP) energy assets was increased by EUR 400mln to EUR 14.6bln. Co. says it submitted its proposed transaction to Alstom today. (BBG) 

Porsche  – Co. expects low double-digit sales growth in China this year, according to its China CEO, amid a push to increase dealerships there by close to 50% by the end of next year. (WSJ) 

BROKER RECOMMENDATIONS (BBG/RTRS) 

N/A 

CAC 

EDF – New French power tariff calculation to use market prices and decorrelating tariffs from Co.’s production costs, according to sources. (RTRS) France’s Environment Minister Royal says doesn’t regret electricity price decision, adds that electricity prices were not transparent and that price decision to be taken after Oct-1. (BBG) This comes after Co. shares fell 7.6% yesterday. 

Alstom - Siemens and Mitsubishi Heavy have raised their cash component for the Co. by EUR 1.2bln to EUR 8.2bln, while the valuation of the Co.’s energy assets was increased by EUR 400mln to EUR 14.6bln. Siemens says it submitted its proposed transaction to Alstom today. Separately, General Electric (GE) said they do not plan to buy Alstom shares from Bouygues (EN FP) as part of the latest bid. Co. confirms it will meet by June 23 and that it won’t communicate until board meeting. (BBG) 

Companies going ex-dividend: CAC Mid 60: Virbac SA (EUR 1.90), Alten SA (EUR 1.00) 

BROKER RECOMMENDATIONS (BBG/RTRS) 

BNP CUT TO UNDERPERFORM AT JEFFERIES 

VALLOUREC REMOVED FROM LEAST PREFERRED OILS AT BOFAML 

PEUGEOT RAISED TO HOLD FROM SELL AT S&P CAPITAL IQ 

PAN-EUROPE 

Fiat  – Co. to sell approximately 3.5% treasury holdings and 2.5% holding in CNH Industrial (CNHI IM) to US investors. (FT) In other news, Co. to sell USD 820mln in holdings to expand upscale brands. (BBG) 

Banco Espirito Santo – Co.’s largest shareholder ESFG says has not gotten any notification of resignation of board and CEO. (RTRS) 

Banca Etruria – Co. says has given mandate to chairman to find possible merger partners after end of talks with Pop Vicenza. (RTRS) 

Banco Espirito Santo – Co. shares were suspended from trading at the request of regulators, according to Euronext. This comes amid reports that the CEO and other board members are to resign. (BBG/Expresso) 

Companies going ex-dividend: IBEX 35: Mapfre SA (EUR 0.08) 

Companies paying dividend: IBEX 35: CaixaBank SA (EUR 0.05), Mapfre SA (EUR 0.08) AEX: Aegon NV (EUR 0.11) 

BROKER RECOMMENDATIONS (BBG/RTRS) 

SAIPEM (SPM IM) ADDED TO LEAST PREFERRED OILS AT BOFAML 

SMI 

UBS – Co. is facing a criminal probe from US authorities for its Puerto Rico bond fund sales. (RTRS) 

BROKER RECOMMENDATIONS (BBG/RTRS) 

N/A 

SCANDINAVIA 

Telenor Kongsberg – Norway's govt will seek to sell stakes valued combined USD 7.7bln as part of a plan to reduce the state's control of the economy. (BBG) 

B&O – Co. says share sale subscribed at DKK 66 and was oversubscribed, proceeds DKK 259.2mln. (BBG) 

Companies paying dividend: OBX: Fred Olsen Energy ASA (NOK 10.00) 

BROKER RECOMMENDATIONS (BBG/RTRS) 

N/A 

US 

US equities closed mixed with the DJIA and S&P 500 closing with small gains after swinging between gains and losses throughout the session, consolidating Wednesday’s moves following the FOMC. Finally the DJIA finished up 0.09% at 16921.46 the S&P 500 finished up 0.13% at 1959.48 and the NASDAQ 100 finished down 0.10% at 3800.80. 

Best Performing Sectors in the S&P 500: Utilities (+0.86%), Consumer Staples (+0.64%) and Energy (+0.62%) 

Worst Performing Sectors in the S&P 500: Materials (-0.22%), Information Technology (-0.20%) and Consumer Discretionary (-0.18%) 

Oracle (ORCL) - Q4 Adj. EPS USD 0.92 vs. Exp. USD 0.95. Q4 revenue USD 11.33bln vs. Exp. USD 11.48bln. Software and cloud revenues up 4% to USD 8.9bln. (BBG) 

Bank of America (BAC) – Co. representatives have asked US Attorney General to meet Co. CEO in an attempt to resolve differences over a possible multi-billion dollar settlement involving MBSs. (RTRS) 

Dish (DISH) – Verizon (VZ) said to be meeting with the Co. on possible spectrum sale. (NY Post

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