(BFW) Symrise Ready for More Buys Next Year, CFO Tells Boers



Symrise Ready for More Buys Next Year, CFO Tells Boersenzeitung
2014-08-03 09:39:41.28 GMT


By Julia Mengewein
Aug. 3 (Bloomberg) -- Co. will be financially ready for
more acquisitions early next yr after buying Diana Group for
EU1.3b this yr, Bernd Hirsch, Symrise AG CFO, tells
Boersenzeitung in interview.
* No plans for consolidation with other large peers from
scents, fragrance industry: Hirsch
* NOTE: Symrise Says Completed Purchase of Diana Group NSN
N9GYDC6JTSEF<GO>

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jmengewein@bloomberg.net
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Lars Paulsson at +44-20-7673-2759 or
lpaulsson@bloomberg.net

(BFW) France May End Pharmacy Monopoly on Selling Some Drugs



France May End Pharmacy Monopoly on Selling Some Drugs, JDD Says
2014-08-03 10:11:00.655 GMT


By Tara Patel
Aug. 3 (Bloomberg) -- French consumers could save an
estimated EU327m on medications like paracetamol and cough
syrups now sold only in pharmacies, Journal du Dimanche
newspaper reports, citing a finance ministry study.
* French government study says some prices could drop as much
as a fifth: JDD
* Pharmacy changes to be part of wider deregulation in
healthcare industry due to high profit margins: Newspaper


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tpatel2@bloomberg.net
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Mike Harrison at +44-20-7073-3564 or
mharrison5@bloomberg.net
V. Ramakrishnan

(BFW) China July Non-Manufacturing PMI Falls to 54.2 From 55



BFW 08/03 00:59 *CHINA JULY NON-MANUFACTURING PMI AT 54.2; JUNE 55.0

China July Non-Manufacturing PMI Falls to 54.2 From 55 in June
2014-08-03 01:02:55.472 GMT


By Bloomberg News
Aug. 3 (Bloomberg) -- China’s non-manufacturing purchasing
managers’ index fell to 54.2 in July from a previously reported
55.0 in June.
* The number was given in a statement released today by the
Beijing-based National Bureau of Statistics and the China
Federation of Logistics and Purchasing
* A reading above 50 indicates expansion
* NOTE: The PMI is based on data compiled from replies to
questionnaires sent to purchasing executives of 1200
companies in 27 non-manufacturing industry categories.
* Link to statement:
http://www.cflp.org.cn/lhhkx/201408/03/292349.shtml
* NOTE: For more China PMI data see {ALLX CPMI <GO>}



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schen514@bloomberg.net

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Nerys Avery at +86-10-6649-7558 or
navery2@bloomberg.net

(BFW) Telefonica May Have Hired Banks for GVT Bid, Repubblica Reports

--> +ve Vivendi....Finally a bid could come

Telefonica May Have Hired Banks for GVT Bid, Repubblica Reports
2014-08-02 08:46:03.699 GMT


By Chiara Remondini and Daniele Lepido
Aug. 2 (Bloomberg) -- Telefonica SA may have hired banks to
prepare bid for GVT, Italian newspaper la Repubblica reports,
without saying how it got information.
* Telefonica may make offer to oppose possible Telecom Italia
SpA bid for GVT
* NOTE July 29: Telecom Italia Plans Possible GVT Alliance,
Economista Reports NSN N9GLB96S972T <GO>
* NOTE July 18: Tim Says It Isn’t in Talks W/ Oi Or GVT NSN
N8XETH6JTSEA <GO>


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cremondini@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net

WWD : P&G to Cut Half its Brands

P&G to Cut Half its Brands

After a disappointing year, consumer products giant The Procter & Gamble Co. is cutting way back with plans to eliminate at least half of its 160-brand portfolio.

A.G. Lafley, chairman, president and chief executive officer, who retook control of the company in May, said P&G delivered on its financial commitments for the year ended June 30, but “could have and should have done better.”

The overall company saw earnings from continuing operations rise 4 percent to $11.71 billion on a 1 percent gain in sales, to $83.06 billion.

“Delivering a better year was solely in our influence and control," said Lafley on a conference call, noting that sales could have risen much faster, at 4 percent.

While shying away from specifics on which brands will be cut, Lafley said: “We will become a much more focused, much more streamlined company of 70 to 80 brands. Organized into about a dozen business units, and the four focused industry sectors.”

The company currently has five main areas of business: beauty; grooming; health care; fabric care and home care, and baby, feminine and family care.

Of those five, beauty turned in the weakest sales performance for the fourth quarter, but posted a 23 percent rise in profits of continuing operations, to $498 million. Net sales fell 5 percent to $4.63 billion, with organic sales slipping 3 percent and currency exchange making up the balance of the decline.

For the full year ended June 30, the company's beauty business drove earnings up 11 percent to $2.74 billion on a 2 percent drop in sales, to $19.51 billion.

On the call, Lafley said beauty was “one of the better performing sectors this last year, unfortunately, it was a little unbalanced. Too much of the value creation came from cash and profit improvement, although I will take it and there's a lot more there.”

He said the company had seen progress in its Old Spice business. The Pantene brand also saw some progress, although the ceo said it was “still not the progress I would like in the U.S.”

“We had a little bit of progress which excited some of our competitors and turned into a second quarter that was heavily promoted, but at any rate, we will get through that,” he said. “Pantene is growing very strongly and in important places like Brazil…. Head and Shoulders has gone from strength to strength. Herbal [Essences] is growing again. Vidal [Sassoon] is growing in key markets and then before the year was out, even on Olay, which is still struggling, we have some real encouragement in a couple of places.”

Speaking of the whole company, Lafley said, “While operating discipline and executional capability are getting better, a lot better around here, it must continue to improve to reach the levels of performance this company and our organization is capable of.” That mean’s a dramatically smaller company, at least from a brand perspective.

The company plans to eliminate 80 to 90 brands over the next year or two and focus on the 70 to 80 brands that produce 90 percent of its sales and 95 percent of its profits.

"This will be a much simpler, much less complex company of leading brands that's easier to manage and operate,” Lafley said. “This simplicity will significantly focus investment and resource allocation and enable execution.”

Investors gave a thumbs up to the move, pushing the company’s stock up 4.2 percent to $80.59 by 11:30 on Wall Street.

RTR - Moody's upgrades Greece's bond rating to Caa1 from Caa3

Moody's upgrades Greece's bond rating to Caa1 from Caa3
Aug 1 (Reuters) - Moody's Investors Service upgraded Greece's government bond rating to Caa1 from Caa3, citing the progress in implementing structural reforms.

The outlook on the rating is stable.

The ratings agency said Greece's short-term debt rating is unaffected and remains "Not Prime".

Moody's said it expects the general government debt-to-GDP ratio to decline in 2015, after peaking this year at around 179 percent of GDP. to see Moodys press Release {http://bit.ly/XtCrTr}

Moody's said the improvement in Greece's economic outlook, based on both a cyclical recovery and the progress made in implementing structural reforms and rebalancing the economy, supports the downward trajectory of the public debt ratio.

Moody's has also raised the local and foreign-currency country ceilings for long-term debt and deposits to Ba3 from B3.

FT : Berths boom as super-rich rekindle love affair with high-sea luxury

Berths boom as super-rich rekindle love affair with high-sea luxury

The world’s super-rich are returning to the high seas, with the number of luxury yacht sales hitting their highest level since the financial crisis after a spike in demand from American and Russian tycoons.
Superyachts – pleasure boats more than 24 metres in length – have been slower than other sectors of the luxury goods market to bounce back from the financial meltdown in 2008.

But demand from international billionaires has started to pick up over the past 18 months as sellers become more realistic on price, according to yacht makers and brokers.
The longest vessel to hit the sea so far in 2014 is Italian shipbuilder Fincantieri’s 140m Victory, the ninth-biggest in the all-time list of megayachts. The boat is spread over seven decks and is said to have six pools up to 8m in length as well as a floodable internal garage for its “tender” – a small boat that ferries passengers to and from shore.
“Buyers are more sensible now [and] there’s a general move towards less is more. People are going for best quality boats rather than just the biggest boat,” said Chris Cecil-Wright, a yacht broker for 20 years.
Even so, a typical superyacht can still command a price in excess of $150m and boast several gymnasiums and swimming pools, as well as a so-called hydraulic swim platform, or “beach club”, where children can pretend they are at the beach.
There were 221 sales of superyachts in the first half of 2014, a rise of almost a third from the same period a year ago, according to figures from Boat International Media. That represents a 66 per cent rise from the 74 yachts sold in the first half of 2009, the bottom of the market.
Separate figures show the new-build superyacht market is also picking up. According to Superyacht Intelligence, there are 360 yachts being built this year, a number which is expected to rise to 411 – the same level as in 2013. That is still well below the 2008 peak, when there was an order book of 587 yachts.
One broking company, Fraser Yachts, this week said it had sold its fifth yacht in just 10 days during the summer period, which is normally a quiet time for yacht sales. Edmiston, a UK-based luxury yacht broker, sold five yachts in five weeks during June.
Phillip Holden of Bluewater, a France-based brokerage, said sales were up in all areas at his company. “We are moving ahead of pre-recession numbers and forecast good growth over the latter half of 2014.”
While the number of sales has increased over the past year, many in the industry point out that values still remain far-below pre-crisis levels.

The improved outlook will come as a relief to yachtmakers, many of whom were almost crippled by the financial crisis. Lots of companies have been acquired by new – often Chinese – buyers in recent years.
Last year, Dalian Wanda Group, China’s largest commercial property and entertainment conglomerate by assets, bought 91.8 per cent of Sunseeker from its Irish private equity owner FL Partners in a £300m deal. It follows the purchase by Shandong Heavy Industry of luxury yachtmaker Ferretti in 2012.
A re-emergence of wealthy American buyers, who have traditionally been the biggest nationality of buyers, has helped boost the market.
Christos Livadas, founder and chief executive of NISI Yachts, a European luxury yacht builder, said the US pre-owned market is more or less at the same activity range as pre-crisis levels. However, European buyers have yet to return and the outbreak of the conflict in Ukraine has seen some Russian buyers disappear.
But despite China being touted as the next big growth market for yachts for the past two decades, the lack of infrastructure, such as marinas, coupled with restriction on inland migration has stifled appetite.
According to Juliet Benning, editor of Superyacht Business, late autumn is traditionally the period when many deals are struck after the industry shows at Monaco Yacht Show in September and Fort Lauderdale the following month.
However, many in the industry say superyacht sales are unlikely to reach the heady heights of before the financial crisis. “The recession was so deep that we may never see again those halcyon days,” said Bob Saxon, president of the International Yacht Collection.

FT : Airlines divided over crossing Iraq after MH17 crash

Airlines divided over crossing Iraq after MH17 crash
A split has emerged between airlines about whether it is safe to fly over war-torn Iraq, after Malaysia Airlines flight MH17 was downed in Ukraine.
British Airways and Etihad Airways are among those continuing to fly passenger jets over Iraq, while Air France and Virgin Atlantic have stopped doing so. Emirates Airline also plans to halt the practice while Qantas, which has been passing over, on Saturday announced it was suspending flying over Iraq.
Many aircraft flying between European and Asian cities pass over Iraq, where the government is fighting jihadis led by the Islamic State of Iraq and the Levant, known as Isis, which controls much of the north and west.

The conflict has prompted US regulators to order the country’s carriers to fly higher above the country “due to the potentially hazardous situation”. The Federal Aviation Administration told US carriers on Thursday night to fly above 30,000ft in Iraq, having previously instructed them to keep above 20,000ft.
Willie Walsh, chief executive of International Airlines Group, parent of BA, said on Friday: “We fly over Iraq because we consider it safe – if we thought Iraq was unsafe we would not fly over Iraq.”
However, he admitted that it may be “confusing” for passengers trying to understand why airlines had adopted different positions on Iraq.
Mr Walsh said airlines should conduct their own risk assessments to decide whether to fly over conflict zones because they have different operations and aircraft.
He revealed that British Airways decided in March to stop flying over war-torn eastern Ukraine, where pro-Russia separatists allegedly shot down MH17 last month using a Buk surface to air missile.
Mr Walsh said carriers should swap more information. British Airways does not share its risk assessments with other airlines but Mr Walsh said it if had shown them to Malaysia Airlines, a partner in the Oneworld alliance, it might have prevented the tragedy in Ukraine.
Abu Dhabi-based Etihad said safety was its “number one priority” but there was no evidence that jihadis in Iraq have either the capability or intent to target aircraft flying over the country.
However, Virgin said it had stopped flying over Iraq. “Safety and security is our top priority and we will always follow government advice in such matters.”
In the latest shift of position, Lufthansa, which has been flying over Iraq, announced on Friday that the group’s airlines would suspend doing so until Monday as a “precautionary measure”. It said there was “no danger” in flying over Iraq but Lufthansa wanted to evaluate statements by regulators, including those in the US.
Delta Air Lines and United of the US both said they were not flying over Iraq.

News and analysis on the shooting down of Malaysia Airlines Flight MH17 by a missile over eastern Ukraine
Carriers often rely on information from their home country governments, including intelligence agencies, when deciding whether to fly over conflict zones.
After the MH17 disaster, the International Civil Aviation Organisation, the UN agency that sets global aviation standards, has started considering how “threat information” can be best made available to regulators and carriers.
Emirates is pushing for a new body – possibly set up under the auspices of the International Air Transport Association, the main airline trade body – to share airline risk assessments about conflict zones.
Consumer groups urged carriers, who do not typically give passengers advance details of flight routes, to be more open about which conflict zones they fly over.
Brandon Macsata, executive director of the US Association for Airline Passenger Rights, said: “There are certain passengers who may not want to fly over countries if there is military conflict going on.”
EUclaim, a Netherlands company focused on helping airline passengers claim compensation under EU law for delayed and cancelled flights, also called for more transparency.

WSJ : Formula One Teams Push for a Data Edge

Formula One Teams Push for a Data Edge
Lotus, Infiniti Red Bull Racing, Others Put Growing Emphasis on Data Analysis

NORTHAMPTONSHIRE, England— Marlon Stöckinger, 23 years old, a Filipino-Swiss Junior Formula One driver, started racing for British racing team Lotus in 2013. He finished that year's Renault RNO.FR -3.50% 3.5 Series season in 18th position on the official Junior F1 rankings, with 23 points.

This year, midway in the calendar, he has 63 points. Notwithstanding Mr. Stöckinger's improving skill, how did he do it?

Lotus says it came partly from new ways it collects data vital for improving the performance of its race cars.

2013, Lotus switched a technical partnership on data storage from California-based NetApp to much-bigger U.S. rival EMC Corp. EMC -0.82%

"We are able to punch way above our weight," says Michael Taylor, Lotus F1 Team's information technology director.

Technology in the F1 Wheel
Formula One drivers have a lot to think about during a race. Check out some of the many buttons, toggles, switches and controls fitted to a F1 car's steering wheel.


Faster access to data during a race allows for quicker car modeling and simulation tests. And the team is now able to analyze car aerodynamics in two hours, rather than two weeks as it had done previously.

"We are able to now pull 2,000 statistics per lap," says Mr. Taylor. "Tire data, weather data, fuel data and positional data [are] feeding into a system that is constantly churning out the optimum race strategy."

Car design and function are also key to performance. Engine problems have marred the results of its senior team this year, with Lotus currently in eighth position out of the 11 teams in this year's championship after finishing fourth last year.

But data advances are giving the car an extra edge, says Lotus.

Data is the "blueprint for a racing driver," says Mr. Stöckinger.

The move by Lotus is just one indication of the sport's rush to collect ever larger amounts of data amid rising technical demands in a sport where victory or defeat are measured in hundredths of a second.

The trend is a shift considering F1's technology challenge has typically focused on tweaking a racing car's 80,000 mechanical parts.

The new data rush is allowing smaller teams to narrow the competitive gap as it means less reliance on driver experience and intuition.

Big teams have taken notice.

Before every F1 race, Dallas-based telecom giant AT&T Inc. T -0.73% installs a custom-built fiber-optic network for Infiniti Red Bull Racing's 60-strong track-side team. At the U.S. Grand Prix's Circuit of The Americas in 2013, for example, it brought 120 miles of cabling.

Red Bull is using the fiber-optic data network to try to give its racing cars an advantage. During a race, 100 telemetry sensors in the car relay metrics like speed, pressure and air flow in seven to 10 milliseconds from the Silverstone circuit to data analysts at both its Milton-Keynes factory and wind tunnel in Bedford, both in southern England, as well as engine manufacturer, Renault SA, in Viry, eastern France, some 400 kilometers away.

Data from a car racing in Australia appears on screens at the U.K. factory in three hundred milliseconds, near instantaneously.

Around 200 gigabytes of data goes to the factory every race weekend—more than triple the amount three years ago, says Al Peasland, Red Bull's head of technical partnerships.

"[AT&T's] network is now 2½ times faster than in 2013, says Austria's Red Bull, FIA F1 Championship constructor and driver champions for the last four consecutive years. "It means we can send more data, more quickly," says Mr. Peasland.

It is a competitive space. AT&T's Indian telecom rival Tata Communications Ltd. 500483.BY +0.75% also plays across the F1 circuit.

F1 team Sahara Force India, headed by Indian tycoon Vijay Mallya, partners with Claro, a unit of Mexican telecom giant América Móvil SAB. AMX.MX -0.96% German software company SAP SE SAP.XE -2.19% works with McClaren Mercedes—this year's ace team.

Lotus is building private cloud data storage across two data centers at its campus in Enstone, an Oxfordshire village west of London, using EMC's server technology.

Data needs have nearly doubled in two years and show no signs of slowing, says Lotus. So EMC is providing 1 petabyte—or one quadrillion bytes—of storage to the team until the end of 2016.

EMC doesn't disclose the cost of the technology.

And Mr. Taylor declined to give specific examples of how data use gives his team an advantage, saying race strategy is confidential.

Annual rule changes are also accelerating investment in data technology to improve car design, executives say. This season's regulations require cars designed with less powerful engines, relying on aerodynamic efficiency from a single tailpipe and lower fuel consumption.

F1 drivers have to watch over 20 controls, including overtake and torque, as they race for two hours at speeds of up to 350 kilometers a hour in a cockpit whose temperature can reach 50 degrees Celsius.

Antonio Felix Da Costa, Red Bull's 22-year-old Portuguese reserve driver, says secure radio messages through his earpiece are kept "short" in pressurized race conditions. "[But] you could very easily break down [without data]."

WSJ : Will This Billionaire Bring $3-a-Month Phone Plans to U.S.?

Will This Billionaire Bring $3-a-Month Phone Plans to U.S.?
Iliad's Xavier Niel Points to 'Enormous Potential' in U.S. Market

Xavier Niel, founder of French broadband Internet provider Iliad, says in an interview that he sees huge potential in the U.S. market. Agence France-Presse/Getty Images
PARIS—When Iliad SA ILD.FR -7.01% founder Xavier Niel made a last-ditch attempt this spring to buy a French rival to gain scale, his adversaries thought he was bluffing.

"We told them: Either you tell us you are really for sale, or we turn to other options that may make it difficult to come back to this later," Mr. Niel said, referring to his attempt to buy France's No. 3 telecom company, Bouygues SA EN.FR -3.74% 's Bouygues Telecom.

On Thursday, the French billionaire made good on his threat.

Iliad, which he controls, said it offered $15 billion in cash for 56.6% of T-Mobile US, TMUS +1.46% in a bid to bring Mr. Niel's low-cost, high-margin business to what he views as an overpriced U.S. mobile-phone market.

"The competitive landscape in the U.S. is a lot less aggressive than what we are used to in France," Mr. Niel said in an interview. "There is enormous potential. It is almost too good to be true."

Iliad has thrived on its pledge to cut French households' mobile-phone bills in half, a promise long underestimated by its rivals. The telecom operator entered the French mobile market with cutthroat prices of as little as €2—less than $3—a month in 2012, forcing competitors to follow suit and grabbing around 12% market share in two years.

Mr. Niel sees the same opportunity across the Atlantic, a market five times the size of France's. Iliad would slash bills for T-Mobile US's customers while shoring up profits by sharply cutting costs at the U.S.'s fourth-largest telecommunication company, Mr. Niel said.

Analysts generally consider his bid to be a long shot. T-Mobile US is months into talks to be acquired by rival Sprint Corp. S +1.36% , which is owned by Japanese conglomerate SoftBank Corp. 9984.TO -1.25% Still, Mr. Niel's interest highlights how the lucrative U.S. market—which has long sustained big profits and dividends for giants Verizon Communications Inc. VZ -1.17% and AT&T Inc. T -0.73% —has captured the attention of telecom moguls overseas and is likely to get more competitive.

SoftBank CEO Masayoshi Son faces a tough antitrust battle to buy T-Mobile US, but he also has promised a price war if he succeeds.


T-Mobile US already is shaking up the industry with an aggressive campaign to win customers by doing away with once-standard features like two-year contracts and high fees for international data use, as well as by paying subscribers to switch. After losing more than four million postpaid customers in 2001 and 2012, T-Mobile US has added more than four million over the past five quarters, according to UBS. AT&T and Verizon have been forced to cut prices to stay competitive.

Mr. Niel says Iliad would add a hefty dose of adrenaline to what T-Mobile US Chief Executive John Legere already has started doing.

"We and T-Mobile are made of the same DNA. We are both aggressive challengers," Mr. Niel said. "John Legere has done a great job at starting to animate competition, but we can do more." He said he wants to work with Mr. Legere as part of any deal.

A T-Mobile US spokesman declined to comment.

Iliad wants to improve T-Mobile US's cost structure by applying its own ultraslim cost base, under which it has kept costs to a minimum in everything from IT services to back office to equipment purchases. Iliad estimates it will be able to save about $2 billion annually by cutting out costs such as sending paper bills, and savings on equipment and IT systems, Mr. Niel said.

He views these costs savings and Iliad's experience at running a profitable, low-cost operations as part of the synergies of any deal. He argues that Iliad already has higher profit margins than T-Mobile US despite garnering lowering revenue per customer. The U.S. had average monthly revenue per user of $45.77 at the end of the first quarter, compared with $30.14 in France, according to mobile-industry trade group GSMA.

But before Mr. Niel can execute his American dream, Iliad has to win over T-Mobile US's board, which could prove a formidable challenge.

Iliad first approached a T-Mobile US board member in early June and has had "discussions" with members of the board in the past two months prior to making its indicative offer, Mr. Niel said. Iliad has asked T-Mobile US to give it access to its financial accounts to conduct due diligence for five to six weeks before completing its offer, he added.

Sprint and T-Mobile US don't have a formal agreement, but the companies and their largest shareholders—SoftBank and Deutsche Telekom AG—have agreed to the broad outlines of a deal valuing T-Mobile US at roughly $32 billion, more than Iliad is offering.

"Our offer is fair, and it is the only one that is real," Mr. Niel said. "You cannot compare it with an offer that doesn't exist."

The entrepreneur, who made his fortune in tech investments, is convinced Iliad's bid stands a better chance than Sprint's as it represents a much lower antitrust hurdle, would let consumers benefit from cheaper prices and would preserve more jobs. He said Iliad has no plans to cut jobs drastically or close T-Mobile US retail stores.

A deal with Sprint is expected to face a tough fight from antitrust authorities, who have made clear they don't want to see further consolidation among top industry players.


Investors showed Friday that Iliad's bid has plenty of challenges of its own. Its shares fell 7% in Paris trading as analysts expressed concerns over how Iliad would finance the deal, its lack of experience with large acquisitions internationally and the lofty task of convincing T-Mobile US that its cost savings will create more value than the synergies created in a merger with Sprint.

"To say this is surprising is something of an understatement; it is one of the most bizarre bits of potential M&A we have ever witnessed in the sector," said analysts from Espirito Santo in a note to investors.

Mr. Niel rejects these concerns. He said Iliad has lined up financing from a consortium of banks led by BNP Paribas SA BNP.FR +0.53% and HSBC. HSBA.LN -1.12%

He says he is sticking to the same principle that has guided his ascent from a teenage computer programmer in a working class Paris suburb to one of France's richest men.

"I always follow the same idea: Start small and disrupt to create something big," he said.