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Asia

Asian equity markets traded mostly negative overnight, amid a slew of lackluster PMI releases. The ASX 200 is the laggard weighed heavily by the utilities sector and also drilling Co.s with Ausdrill and Boart Longyear as the largest decliners in the index. Conversely, gold miners are currently outperforming, underpinned by advances seen in gold prices. The Nikkei 225 pared early losses to trade in the green (+1.28%), with sentiment supported by the release of a positive BoJ Tankan survey which pointed to an improving outlook to Japan’s industries, especially in terms of capital expenditure and large manufacturers’ outlook. The Kospi traded with losses, following the release of South Korean HSBC Manufacturing PMI in contractionary territory of 49.4 vs. Prev. 51.1 and also poor trade data where exports in June declined 0.9% Y/Y. The Hang Seng remained closed for a public holiday whilst the Shanghai Comp. traded in the red, amid mixed Chinese PMI data where the Official Chinese Manufacturing PMI pointed to a mild expansion in activity at 50.1, however the Small Co.s Manufacturing PMI printed 48.9 whilst the final reading for the HSBC Manufacturing PMI printed at a 9-month low of 48.2 vs. Exp. 48.3. (RANsquawk)

Best Performing Sectors in the Nikkei 225: Financials (+2.16%), Consumer Goods (+1.46%), Consumer Services (+1.45%)

Best Performing Stocks in the Nikkei 225: Tokyo Dome (+6.35%), Mitsui Engineering (+6.21%), Furukawa (+5.95%)

Worst Performing Stocks in the Nikkei 225: Utilities (-0.02%), Telecommunications (+0.55%), Technology (+0.87%)

Worst Performing Stocks in the Nikkei 225: COMSYS Holdings (-2.05%),k Hokuetsu Kishu (-1.89%), Nikon (-1.86%)

Shanghai Composite may rebound 4% from current level, according to CICC which is a government-owned investment bank and is one of China’s largest investment banking and research services companies. (Newswires)

Aeon – Co. is to post operating profit of around JPY 34.5bln in the March-May quarter, according to unsourced reports. (Nikkei)

FTSE

Barclays – Co. have warned that it may have to cut lending if it is forced to act quickly to meet regulator’s targets, however the Bank of England have ruled out any plans that damage lending. (Newswires) 

Lloyds Banking Group – Co. is planning to rebrand 631 UK branches as TSB, according to unsourced reports. (Sunday Times) Meanwhile, some fund managers are mulling co. share-sale boycott. (Newswires)

GlaxoSmithKline – Co. has repatriated patents relating to more than 150 research projects to take advantage of lower corporation taxes, according to unsourced reports. (Sunday Times) In other news police in Changsha apparently told the official Xinhua News Agency that it had launched the probe into “senior managers” at GSK China. A spokesman for the co. said the company is “aware of the investigation” and is “co-operating” with Chinese authorities. (Telegraph) In other news, Blackstone and Lion Capital have teamed up to make a formal bid worth more than GBP 1bln for Lucozade and Ribena, the two soft drink brands put up for sale by the Co. (Newswires)

Centrica – Iain Conn, head of BP’s refining and marketing unit, is a candidate to become a chairman of the Co., according to unsourced reports. (Independent)

Rio Tinto – Co. won a dismissal of a lawsuit accusing it of contributing to genocide in Papua New Guinea. (Newswires)

British American Tobacco – Dutch fund Zorg en Wezijn sold EUR 600mln of investments in 15 firms including the co. (De Telegraaf)

OTHER UK 

Invensys – S&P affirms the Co.’s ‘BBB-‘ rating; outlook stable. (Newswires)

Bumi – Co. is working on a proposal to sell the Bakrie’s 23.8% stake for cash rather than cancel shares as previously planned. (Sunday Telegraph)

Lonmin – Co. says repairs to number two furnace have been completed as planned. (Newswires) 

Pearson – Co. and Bertelsmann announce completion of merger of Penguin and Random House. Bertelsmann owns 53% of the joint venture and Pearson 47%. (Newswires)

TUI travel – Co. signs new GBP 300mln bank credit facility, maturing in April 2016. (Newswires)

Daily Mail – Independent directors have received an approach from Rothermere regarding a possible offer. Offer would increase Rothermere shareholding of ordinary voting shares in the co. from 59.9% to 89.2%. (Newswires)

Intertek – Co. has signed a new contract with Gabon. (Newswires)

Companies paying dividend: Amec (GBP 0.276), Bunzl (GBP 0.216), Rolls-Royce (GBP 0.119)

DAX

Siemens – Co. is expected to cut around 1,700 jobs in the restructuring of its energy business, according to unnamed senior managers. (Wirtschaftswoche)

Bayer – Co. says Sorafenib submitted to the EMA and FDA for use in Thyroid cancer. (Newswires)

ThyssenKrupp – Co. is currently discussing options to sell parts of their European steel business, according to unnamed people with knowledge of the situation. (Rheinische Post)

RWE – Gazprom is to pay the co. EUR 1bln on gas contracts. (Spiegel) 

OTHER GERMAN COMPANIES

Hochtief – Co. sells its Hochtief solutions business line to Spie for about EUR 250mln. Says sees significant positive earnings effect from sale and closing of the transaction planned year end 2013. (Newswires)

CAC

Altran Technologies – Co. is to pay dividend for the first time in over 10yrs. Dividend amount is to be EUR 0.09/Shr. (Newswires)

Technip – Co. gets contract for two hydrogen reformers in Venezuela. (Newswires) 

GDF Suez – Co. offers to buy back shares sold in 1985 for EUR 800.00 per share. (Newswires) 

Credit Agricole – Co. pays EUR 70mln for 5.6% Limagrain stake. (Les Echos) 

OTHER FRENCH COMPANIES

Aeroports de Paris – France are set to raise EUR 738mln through the sale of stakes in the Co. to Credit Agricole and Vinci. (Newswires) 

Pan-European

Repsol – Co. says acceptance rate for preferred share buyback is 97.21%. (Newswires)

Fiat – Co. says it is to hold 20.1% of RCS MediaGroup, owner of Italy newspaper Corriere della Sera, which next week will close a EUR 400mln capital increase as it struggles with falling revenues and profits.(FT-More)

Banco Popolare – Co. is to exercise 78,750 option rights for RCS share sale. (Newswires)

RCS Mediagroup – Co. may be split into three after a capital hike in order to balance power among shareholders according to domestic press reports. (La Repubblica)

Spanish Banks – The Bank of Spain has told lenders to limit the distribution of dividends because of the uncertain economic environment in Spain and the Eurozone. (Newswires) 

European Banks – ECB review could force Eurozone banks to contract their balance sheets by a further EUR 1.5trl. (Ernst & Young)

Hypo Alpe-Adria Bank – Co. may require as much as USD 2.6bln extra capital. (Newswires) 

Hellenic Postbank – Alpha Bank is “seriously” interested in buying the co., according to Alpha Bank CEO. (Newswires)  

Cypriot Banks – Bank of Cyprus recap needs to be known by the end of July. (Simerini) 

Dexia – IFRS 13 accounting rule to cut EUR 450mln from H1 earnings. Co. says negative impact could still rise or fall. (Newswires) 

Phillips – Co. and Dutch trade unions reach agreement on labour talks. Deal subject to approvals. (Newswires) 

Solvay – Co. expands Vanillin capacity by 40% with Zhenjiang plant. (Newswires) 

KBC – Co. to repay first installment of state aid received from Flanders in H2 2013. (Newswires)

SMI

Roche – Co.’s American partner says Co.’s Herceptin SC has recieved a positive recommendation from an advisory committee to approve a subcutaneous form of its breast cancer treatment in Europe. (Newswires) 

Scandinavia

Nokia – Co. agreed to buy Siemens stake in NSN venture and is to pay less than EUR 2bln for the stake. (Newswires) Co. says it plans to retain existing NSN management structure.

Statoil – Co. takes over operatorship in Eagle Ford asset in Texas. (Newswires) Meanwhile, co. and Rosneft start exploration at Sea of Okhotsk blocks. (Newswires)

Aker Solutions – Co. wins USD 440mln subsea systems deal in UK’s North Sea. (Newswires)

Petrofac – Co. and Kazmunaigas EP sign MoU on efficiency at Emba field. (Newswires)

Ericsson – Co. to acquire leading media services company Red Bee Media. (Newswires)

Broker Recommendations

SABMiller RAISED TO ACCUMULATE VS NEUTRAL AT MIRABAUD

TULLOW OIL RAISED TO NEUTRAL VS REDUCE AT NOMURA

VEOLIA ENVIRONNEMENT RAISED FROM UNDERPERFORM AT CREDIT SUISSE

BBVA CUT TO UNDERWEIGHT VS NEUTRAL AT JPMORGAN

BANKINTER CUT TO HOLD VS BUY AT SOCGEN

AMADEUS IT CUT TO NEUTRAL VS BUY AT UBS

PKN REMOVED FROM GOLDMAN SACHS’ CEEMEA FOCUS LIST

SWISSCOM RAISED TO BUY VS HOLD AT DEUTSCHE BANK

H&M RAISED TO BUY VS NEUTRAL AT BOFAML

Nokia RAISED TO OVERWEIGHT VS UNDERWEIGHT AT JPMORGAN

SWEDISH MATCH CUT TO HOLD VS BUY AT SEB

INDUSTRIVARDEN CUT TO HOLD VS BUY AT SEB

VOLVO REMOVED FROM CONVICTION BUY LIST AT GOLDMAN SACHS

Friday’s Largest European Option Block Trades

Sandvik AB 10k Aug-13 80 calls block bought on Friday.

AXA 12,500 Dec-13 13 puts block trade bought on Friday.

SocGen 5k Sep-13 26 puts block trade bought on Friday, co. shares settled down 4.17% at EUR 26.40.

Santander 12,100 Jul-13 4.6 puts block trade bought on Friday, co. shares settled lower by 1.27% at EUR 4.9.

US

US equities fluctuated between gains and losses finishing Friday’s session mixed as the NASDAQ outperformed its counterparts, lifted by strength in Biogen shares. Better than expected U.Michigan confidence reading and comments from Fed’s Stein that were less-dovish than those heard from other Fed speakers in recent days, saw equities come under pressure underpinned by USD strength. This consequently saw the S&P 500 briefly break below the 1600 level. In individual stocks, Blackberry shares tumbled over 27% following weaker than expected earnings. Similarly, a weak earnings report saw Accenture, the world’s second largest technology consulting co., fall 11%. This weighed on IBM shares which saw underperformance in the DJIA index. Finally, the DJIA finished down 0.81% at 14,900.23, the S&P 500 finished down 0.46% at 1605.75 and the NASDAQ 100 finished up 0.09% at 2909.60. 

Best Performing Sectors in the S&P 500: Utilities (+0.37%), Consumer Services (+0.10%), Technology (-0.18%)

Worst Performing Sectors in the S&P 500: Industrials (-0.94%), Health Care (-0.86%), Telecommunications (-0.73%)

Apple – Co. files trademark application for iWatch in Japan. (Newswires)

Bank of America/ Wells Fargo – The two won’t face an enforcement action by state and federal officials over claims that the banks violated a USD 25bln mortgage-servicing settlement. (SeattleTimes)

Barrick Gold – Co. said it is postponing production at its giant Pascua Lama mine by at least a year and a half and said it will likely take an impairment charge of up to USD 5.5bln on the project. (WSJ)

Walmart – Dutch investor PGGM sells its shares in the co. (Dagblad)

You can now follow real-time news headlines on the move with the new RANsquawk app available to download for free at ransquawk.com/mobile_app for Apple iPhone, Blackberry and Android users. Please note the headlines can be viewed on the app between 0630BST/0030CST to 2200BST/1600CST Monday to Friday but does not include Asian-Pacific news.