(BFW) Putin Tells Barroso He Could ‘Take Kiev in 2 Weeks’: Repubblica


Putin Tells Barroso He Could ‘Take Kiev in 2 Weeks’: Repubblica
2014-09-02 03:09:09.622 GMT


By Demian McLean
Sept. 2 (Bloomberg) -- Russia’s Putin is said to have told
European Commission President Barroso, “If I want, I could take
Kiev in two weeks,” according to La Repubblica story yesterday
that doesn’t identify a source for the information.
* Comment came during phone call as Barroso demanded an
explanation for Russian troops on Ukrainian soil, the
Italian newspaper reports
* Barosso relayed Putin’s statement to EU leaders at summit in
Brussels over the weekend: Repubblica
* NOTE: The summit gave EC a week to come up with proposed
sanctions that might be levied on Russia if Ukraine conflict
worsens


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--With assistance from Francesco Alberti in Tokyo.

To contact the reporter on this story:
Demian McLean in Melbourne at +61-3-9228-8734 or
dmclean8@bloomberg.net
To contact the editor responsible for this story:
Ven Ram at +65-6212-1157 or
vram1@bloomberg.net

>>> Asian Update

Asian Market Update: RBA keeps rates at record lows; Japan stocks higher on weak yen, cabinet reshuffle


***Economic Data***
- (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH RATE TARGET UNCHANGED AT 2.50%; AS EXPECTED (12th straight pause)
- (KR) SOUTH KOREA AUG CPI M/M: 0.2% V 0.3%E; Y/Y: 1.4% V 1.6%E
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 112.6 v 113.5 prior
- (JP) JAPAN AUG MONETARY BASE Y/Y: 40.5% V 42.7% PRIOR; MONETARY BASE END OF PERIOD: ¥243.5T V ¥243.2T PRIOR
- (NZ) NEW ZEALAND AUG ANZ COMMODITY PRICE M/M: -3.3% V -2.4% PRIOR
- (JP) JAPAN JUL LABOR CASH EARNINGS Y/Y: 2.6% (5th consecutive increase) V 0.9%E
- (AU) AUSTRALIA Q2 CURRENT ACCOUNT BALANCE (A$): -13.7B V -14.0BE; NET EXPORTS OF GDP: -0.9% V -0.7%E
- (AU) AUSTRALIA JUL BUILDING APPROVALS M/M: 2.5% V 1.9%E; Y/Y: 9.4% V 7.8%E

***Index Snapshot (as of 03:30 GMT)***
- Nikkei225 +1.3%, S&P/ASX +0.1%, Kospi flat, Shanghai Composite +0.2%, Hang Seng -0.3%, Sept S&P500 +0.1% at 2,002

***Commodities/Fixed Income/Currencies***
- Dec Gold -0.2% at $1218.1, Oct Crude -0.1% at $95.84
- (CN) PBoC to drain CNY18B in 14-day repos (11th consecutive drain)
- JGB: (JP) Japan MoF sells ¥2.20T in 0.5% 10-yr notes; Avg Yield: 0.5217% v 0.522% prior; bid-to-cover: 3.58x v 4.29x prior

***Market Focal Points/Key Themes***
- The Australia RBA kept the official cash rate at a record low of 2.50%, as widely expected. The central bank again forecasted no moves for a period of time. Although the RBA said there has been some improvement in indicators for the labor market this year, but it will probably be some time yet before unemployment declines consistently. The central bank also reiterated that the AUD is high by historical standards, particularly given the declines in commodity prices. The rate decision follows the release of the current account deficit of A$13.7B.
- Japan July wages increased 2.6%, the fastest pace in more than 17 years in July, quelling expectations of a slowdown. Total average wages for July rose for the fifth consecutive month to ¥369.8K. In addition, the average base wages increased at its fastest pace in more than 14 years at 0.7%.
- USD/JPY traded stronger by over 45 pips, above ¥104.80 and marks the highest level in 7 months. The strengthening followed press reports that Japan Prime Minister Abe may offer a cabinet position to LDP Deputy Policy Chief Shiozaki, who has been an outspoken proponent of GPIF pension reform.
- Australia's official building approval data for July gained 2.5% from the prior month beating forecasts of 1.9%, and from the prior year approvals were up 9.4% also beating estimates of 7.8%. In terms of components permits to build houses increased 1.4% from the prior month, with approvals for apartments, townhouses and other dwellings were up 5.9%.
- China press reporting big four banks in China had CNY125B in new loans during Aug 1st-28th, comparing to CNY210B in month of July. Deposit in big four banks said to have fallen CNY450B, comparing to fall of CNY1.5T in July. China big four banks continue to report disappointing lending data, after month of July China reported overall lending data well below expectations. Reminder earlier in the month, CICC speculated China Aug new loans at CNY600-700B, on stronger new loans from joint-stock banks.

***Equities***
US markets:
- AAPL: Spokesperson: Actively investigating reports of hacking - financial press
- CPWR: Said in advanced talks to be acquired; May announce on Sept 2nd - financial press

Notable movers by sector:
- Consumer discretionary: Huangshan Tourism Development 600054.CN +% (private placement)
- Consumer staples: China Modern Dairy 1117.HK -% (KKR sells stakes)
- Technology: Samsung Electronics 005930.KR -% (hits lowest level since July 2012)
- Energy: Malpo Energy MPO.AU +10.0% (CEO resigns)
- Financials: Aspen Group APZ.AU -1.2% (Ingenia withdraws plan of acquisition)

Luxottica Explored Essilor Deal But Didn’t Pursue: Reuters

+------------------------------------------------------------------------------+

Luxottica Explored Essilor Deal But Didn’t Pursue: Reuters 2014-09-01 18:54:29.577 GMT

By Joe Richter Sept. 1 (Bloomberg) -- {NSN NB8K5SBE5TS0 <go>}

Link to Company News:{EI FP <Equity> CN <GO>}

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FT : New Tesco chief pledges to address loss of market share



From: LAURENT CHEKROUN () At: Sep 1 2014 20:44:41
Subject: Fwd:FT : New Tesco chief pledges to address loss of market share
New Tesco chief pledges to address loss of market share

Dave Lewis rallied staff on his first day as chief executive of Tesco with a promise to restore the UK’s largest grocer as “the customers’ champion”, while highlighting its loss of market share in the UK as its most urgent problem.
The ex-Unilever executive, who was catapulted into the job on Monday, a month earlier than planned, said he would spend his first few days in meetings – including with investors.

This followed the decision by US fund manager Harris Associates – one of the group’s biggest investors – to slash its holding in the underperforming retailer, citing an “unclear management direction and incoherent strategy”.
Shares in Tesco fell another 2 per cent on Monday following Friday’s profits warning and dividend cut, as some investors bailed out. But others dived in.
Bruno Monteyne, analyst at Bernstein Research, said: “There was a lot of selling at the end of last week. Tesco has a large base of value investors. They are broadly speaking either taking the view that this is the bottom and doubling up, or getting out because the situation is not playing out as they expected. From what we’ve been seeing, there was lots of action both ways at the end of last week and some people are increasing their stakes.”
One top 20 investor in Tesco said: “We looked at selling shares four or five months ago and sold a little bit of our stake, but we do not think now is the time to sell again. We think that Tesco is in a position to recover from here. The announcement on Friday has cleared the decks for Lewis.”
Mr Lewis paid tribute to his predecessor Philip Clarke, who was ousted in July, saying the retail market in all the countries in which Tesco operates “has become extremely tough”. He gave no clues as to his strategy, but said that Tesco’s loss of market share in the UK needed to be addressed “with urgency”.
Despite his lengthy to-do list, Mr Lewis said he would not be rushed on strategy. “I won’t take any hasty decisions . . . We have some urgent issues to deal with but we must address these in a way which is consistent with building a long-term sustainable future,” he said in the staff memo.
Analysts at Deutsche Bank – which is Tesco’s joint broker – downgraded their recommendation on the group the day before the profits warning, from Buy to Hold, citing “low visibility” given the management changes. These include a new finance director, Alan Stewart, who is to start in December.
Moody’s, the rating agency, left its “stable” outlook unchanged, but said on Monday it would reassess its rating and outlook “if there is a further material deterioration in operating performance”. It added that Mr Lewis’ early start was “a positive sign that the company is eager to reassess its strategy”.
Tesco has been slow to respond in the supermarket price war and has been losing market share to Aldi and Lidl, the German hard discounters.
One top 20 investor said turning Tesco round needed time: “We are a long-term shareholder and will stick with the group. Clarke was too slow to respond to the threat of the discounters and the online challenge, which is why he has gone. We would like to see some clearer signs on strategy over disposals and how the group can take on the discounters.”

FT : New Tesco chief pledges to address loss of market share

New Tesco chief pledges to address loss of market share

epa04324953 An undated handout photo made available by Unilever Group of senior executive Dave Lewis who, it is reported 21 July 2014 is to replace Tesco chief executive Philip Clarke who is leaving Britain's biggest retailer. Lewis will become the first outsider to run Tesco and will be tasked with turning around the ailing retailer.Tesco issued a major profits warning alongside news of Clarke's exit. EPA/HO HANDOUT EDITORIAL USE ONLY/NO SALES©EPA
Unilever Group of senior executive Dave Lewis who, it is reported 21 July 2014 is to replace Tesco chief executive Philip Clarke
Dave Lewis rallied staff on his first day as chief executive of Tesco with a promise to restore the UK’s largest grocer as “the customers’ champion”, while highlighting its loss of market share in the UK as its most urgent problem.
The ex-Unilever executive, who was catapulted into the job on Monday, a month earlier than planned, said he would spend his first few days in meetings – including with investors.

This followed the decision by US fund manager Harris Associates – one of the group’s biggest investors – to slash its holding in the underperforming retailer, citing an “unclear management direction and incoherent strategy”.
Shares in Tesco fell another 2 per cent on Monday following Friday’s profits warning and dividend cut, as some investors bailed out. But others dived in.
Bruno Monteyne, analyst at Bernstein Research, said: “There was a lot of selling at the end of last week. Tesco has a large base of value investors. They are broadly speaking either taking the view that this is the bottom and doubling up, or getting out because the situation is not playing out as they expected. From what we’ve been seeing, there was lots of action both ways at the end of last week and some people are increasing their stakes.”
One top 20 investor in Tesco said: “We looked at selling shares four or five months ago and sold a little bit of our stake, but we do not think now is the time to sell again. We think that Tesco is in a position to recover from here. The announcement on Friday has cleared the decks for Lewis.”
Mr Lewis paid tribute to his predecessor Philip Clarke, who was ousted in July, saying the retail market in all the countries in which Tesco operates “has become extremely tough”. He gave no clues as to his strategy, but said that Tesco’s loss of market share in the UK needed to be addressed “with urgency”.
Despite his lengthy to-do list, Mr Lewis said he would not be rushed on strategy. “I won’t take any hasty decisions . . . We have some urgent issues to deal with but we must address these in a way which is consistent with building a long-term sustainable future,” he said in the staff memo.
Analysts at Deutsche Bank – which is Tesco’s joint broker – downgraded their recommendation on the group the day before the profits warning, from Buy to Hold, citing “low visibility” given the management changes. These include a new finance director, Alan Stewart, who is to start in December.
Moody’s, the rating agency, left its “stable” outlook unchanged, but said on Monday it would reassess its rating and outlook “if there is a further material deterioration in operating performance”. It added that Mr Lewis’ early start was “a positive sign that the company is eager to reassess its strategy”.
Tesco has been slow to respond in the supermarket price war and has been losing market share to Aldi and Lidl, the German hard discounters.
One top 20 investor said turning Tesco round needed time: “We are a long-term shareholder and will stick with the group. Clarke was too slow to respond to the threat of the discounters and the online challenge, which is why he has gone. We would like to see some clearer signs on strategy over disposals and how the group can take on the discounters.”

(BFW) Akzo’s Cost-Cutting CEO Said to Be Solicited for $7b Deal


Akzo’s Cost-Cutting CEO Said to Be Solicited for $7b Deal
2014-09-01 14:30:05.918 GMT


By Brian Lysaght
Sept. 1 (Bloomberg) -- Axalta Coating Systems, the former
DuPont. unit purchased by Carlyle Group for $4.9b in 2013, could
fetch more than $7b as the buyout owner contemplates bids
alongside a planned IPO, three people familiar with the matter
tell Bloomberg’s Elco van Groningen, Andrew Noel and Aaron
Kirchfeld.
* Akzo Nobel hasn’t indicated whether it will pursue Axalta,
according to the people
* Akzo Nobel and rival Sherwin-Williams are seen as
potential fits for the U.S. supplier of coatings
* Story: {NSN NB882F6TTDS1<Go>}

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WSJ : EU Sends Questionnaire to Rivals Over Facebook Deal With WhatsApp

EU Sends Questionnaire to Rivals Over Facebook Deal With WhatsApp
Officials Seek to Identify What Separates a Social Network From a Messaging Application

BRUSSELS—European Union antitrust officials have sent a detailed questionnaire to competitors and customers of Facebook Inc. FB +1.31% and message service WhatsApp as they probe the proposed $19 billion acquisition of the latter by the California-based tech giant.

EU antitrust officials will try get to the heart of the competitive landscape and understand what separates a social network from a messaging application, according to a questionnaire sent to them, and seen by The Wall Street Journal.

The questionnaire was sent to companies—likely including telecoms companies, social-networking sites and other Internet service providers—identified by the European Commission as competing providers or customers in at least one of the markets in which Facebook and WhatsApp operate.

The commission's questioning comes after Facebook and WhatsApp provided formal notification to the commission, the EU's antitrust body, on Aug. 29. Facebook approached the European Commission, the EU's central antitrust authority, to ask it to review the blockbuster deal. It could enable Facebook to avoid potentially burdensome antitrust probes in multiple EU countries.

Europe's influential telecoms industry has been lobbying against the merger, arguing that "over-the-top" operators like WhatsApp use telecom companies' infrastructure but aren't taxed or regulated in the same way. EU antitrust regulators typically have 25 working days after a deal has been notified to decide whether to wave it through or to launch a more detailed investigation. The latter path could result in the merger being blocked if regulators decide it could harm competition in the EU's common market.

Competitors have until Sept. 8 to reply to the questionnaire, which runs to nearly 70 pages and contains in-depth questions on the ease of switching between networks, how easy it is to create new competitors, and how the new social media industry and its apps compete with traditional telecoms services.

"Do you consider traditional electronic communications services, such as voice calls, SMS, MMS, emails, etc., to be substitutable with the consumer communications services functionalities offered by your app(s)?" one question asks, looking into the way in which many people now use Apple Inc.'s iMessage, WhatsApp, Twitter direct messages or other services as alternatives to Short Message Service—the formal name for texting.

It asks rivals what distinctions could be drawn "between services primarily designed to enable users to keep in touch with their existing friends / relatives as opposed to services primarily designed to enable users to enter into contact with new people," and which are the biggest Facebook competitors around the world.

It asks questions about what a merged entity could do with customers' data, and how that could affect advertising services, in particular the effectiveness of adverts over both mobile devices such as smartphones and on computers.

"In your view, what would be the likely impact on WhatsApp and its user base if post-transaction WhatsApp… were to start collecting increased amount of data about its users (e.g. user location, age, gender, message content, etc.)?" the questionnaire asks.

It also probes the growing overlap between social networks and messaging services, as companies scramble to make the most advantageous possible use of consumers' data.

"Which of the following websites/apps in your view can be described as a provider of social networking services? Please tick as many boxes as you consider appropriate," the commission asks, before listing dozens of services including Flickr, Foursquare, Google+, InterNations, LinkedIn, Myspace, Meetup, Tumblr, Twitter, Skyrock, Pinterest, Ask.FM and Spotbros.

The European Commission declined to comment on the document.

(BFW) Swedish Government May Seek to Sell Entire TeliaSonera Stake


Swedish Government May Seek to Sell Entire TeliaSonera Stake
2014-09-01 14:02:57.162 GMT


By Johan Carlstrom
Sept. 1 (Bloomberg) -- Swedish Finance Minister Anders Borg
says coalition government may sell its entire stakes in
TeliaSonera and SBAB if it wins general election on Sept. 14.
* Could also divest parts of TeliaSonera, SBAB
* Household debt likely biggest risk facing Swedish economy
* Govt has no plan to reduce mortgage cost tax deductions
* Borg comments to reporters after speech in Stockholm
* NOTE: Earlier: Swedish Govt Wants to Reduce Stakes in
TeliaSonera, SBAB


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Niklas Magnusson