>>> Barron’s Summary: Positive on EMC, AMZN, USTR, AKAM

Barron’s Summary: Positive on EMC, AMZN, USTR, AKAM 

Features: Positive on EMC: even if the data-storage giant resists spinning off VMWare investors still likely to profit; Positive on DHI: fast growth and depressed shares offer investors an undervalued buy play in a strengthening housing market; Positive on USTR: shift in focus from office supplies to janitorial/industrial goods should drive profits. 

Tech Trader: Positive on AMZN: investors losing patience with the loss-averse strategy but the companys push for $9.99 ebooks gaining traction and could lead to an iTunes-like revolution in the publishing industry; Positive on AKAM: growing internet traffic and proliferation of hackers combine to produce perfect growth opportunities for the internet-security and traffic-control company. 

Trader: Negative on HLF: company survived Ackman presentation and then succumbed to 20% decline after poor earnings with more risk ahead due to its exposure to weak Venezuelan bolivar; Positive on DSW: discount footwear retailers outlook is better than recent performance indicates as shares now trade at attractice levels. 

Follow-Up: Cautious on TWTR: Concerned the social company wont be profitable for some time; Positive on TV: Mexican media company performed strongly last year and looks set to continue outperforming. 

Asian Trader: Cautious on Samsung Electronics (005930.KR): company in transition but remains a long-term play for investors willing to wait. 

European Trader: Positive on Adidas AG (ADS.DE): despite recent downturn the company is poised for growth through strong brand recognition and deep cash reserves; Cautious on Banco Espirito: disclosure of its exposure to parent (Banco Espirito Santo International) will make for a rough future. 

Emerging Markets: Positive on India/Indonesia: electoral developments have optimism surging in the two countries; Positive on Chinas recent crackdown on corruption driving growth; Cautious on Thailand as it struggles with instability. 

Striking Price: Fed Action: concerns over a possible Fed-driven bubble circling as the central bank seemingly moves into market management as well as the economy.

>>> Japan govt considering eliminating or scaling down some of the business ince

Japan govt considering eliminating or scaling down some of the business incentives set to expire at the end of FY14/15 to lessen the budget impact from corporate tax cut - Nikkei 
- Incentives said to include preferential measures that ease the tax burden on smaller companies as well as tax breaks for plant and equipment investment; Total revenue saving under consideration seen around ¥250B.

WSJ's Hilsenrath: Fed Can Be Patient on Rate-Hike Debate After Data

WSJ's Hilsenrath: Fed Can Be Patient on Rate-Hike Debate After Data
Underlying Details of Jobs Report Also Includes Several Encouraging Developments

The Federal Reserve was left on a patient course as it weighs interest-rate increases after a roster of economic reports Friday pointed to steady U.S. job growth and firming—but still low—inflation and wages.

A Commerce Department report showed the Fed's favored measure of inflation—the personal consumption expenditure price index—was up 1.6% in June, its 26th straight month below the Fed's 2% inflation goal, though higher than readings at 1% and below last year. Meantime, the Labor Department reported average hourly earnings of private-sector workers were up 2% from a year earlier, unchanged from the range of the past few years.

That could give Fed Chairwoman Janet Yellen leeway to stick to a plan to keep short-term rates near zero until well into 2015. Still, Ms. Yellen is facing increasing internal pressure from easy-money skeptics on her policy committee to move more quickly toward rate increases.

In a statement Friday, Philadelphia Federal Reserve Bank President Charles Plosser pointed to current inflation and employment levels to argue that the going Fed schedule for weighing rate increases "remains well behind what I consider to be appropriate given our goals."

Mr. Plosser dissented at the Fed's policy meeting this past week, wanting a shift away from easy-money policies.

Richard Fisher, president of the Dallas Fed, said in an appearance on CNBC television that rates might need to rise in early 2015. Mr. Fisher said he didn't dissent at the last meeting because he felt officials were moving in this direction by recognizing firming inflation.

The Fed released projections in June showing most officials didn't expect to move until 2015, and officials have quietly encouraged the market's view that they won't move until the middle of the year.

The job market has improved much more quickly than Fed officials expected several months ago. In December 2013, for example, they projected the unemployment rate would remain between 6.3% and 6.6% through the end of 2014. Instead the rate fell to 6.1% by June.

Another decline in July would have ratcheted up pressure on Ms. Yellen to move more quickly. Instead the Labor Department reported Friday the rate rose to 6.2% in July.

An influx of job searchers in July appeared to increase the count of unemployed. The labor force increased 329,000 last month, which suggests people are becoming more encouraged about seeking out work. The report showed a 141,000 influx of "re-entrants" into the labor force in July, people who hadn't been looking for work but started again.

That last data point fits with the narrative Ms. Yellen has been describing, in which a healthier economy draws more searchers into the labor market, an influx of labor supply that could hold down wages and inflation and give the Fed space to keep rates low.

Some analysts say Ms. Yellen risks falling behind the curve in keeping interest rates so low as the jobless rate falls back near historic norms.

The Fed is being "extraordinarily aggressive as the economy moves back toward normal times," said Laurence Meyer, senior managing director of Macroeconomic Advisers, a research and economic-advisory firm.

Mr. Meyer served as a Fed governor with Ms. Yellen when she was a Fed governor in the 1990s. The two were regular allies in policy debates.

"Why take that risk," he asked, "when you're already at or very close to full employment and policy is extraordinarily accommodative?"

(BFW) Permira Said to Seek Buyer for $5.5b Stake in Hugo Bos



Permira Said to Seek Buyer for $5.5b Stake in Hugo Boss
2014-08-01 15:41:34.123 GMT


By Jim Silver
Aug. 1 (Bloomberg) -- Permira in talks with advisers about
potential sale of remaining 56% stake, 3 people with knowledge
of the matter tell Bloomberg’s Aaron Ricadela, Kiel Porter and
Ruth David
* No decision has been made
* Permira’s preference is to sell the stake in a single
transaction because a series of sales to institutional
investors could hurt the stock price
* Representatives for Permira and Hugo Boss decline comment

Link to full story: NSN N9MWPT6JTSED<GO>

For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Jim Silver in New York at +1-212-617-7342 or
jsilver@bloomberg.net
To contact the editor responsible for this story:
Andrea Snyder at +1-202-624-1831 or
asnyder5@bloomberg.net

(ILS) Finmeccanica: sono Bombardier e Hitachi a essere in co



Finmeccanica: sono Bombardier e Hitachi a essere in corsa per Breda e Sts
2014-08-01 14:46:52.911 GMT


(Il Sole 24 Ore Radiocor) - Roma, 01 ago - Sono Bombardier e
Hitachi, come riferiscono a Radiocor fonti qualificate, i due
gruppi rimasti in lizza per presentare un'offerta a
Finmeccanica per il business dei Trasporti (AnsaldoBreda e
Ansaldo Sts che il gruppo controlla con il 40%). Il nome
della canadese Bombardier, gia' partner di Breda nella
commessa per il nuovo treno ad alta velocita' Frecciarossa
1000 destinato alle Fs e interessata a crescere nel settore
del segnalamento, circola ormai da tempo. Erano piu' defilati
negli ultimi tempi, invece, i giapponesi di Hitachi, che
comunque furono tra i primi a mostrare interesse in questa
partita che si sta giocando ormai da anni sulla possibile
dismissione del settore trasporti di Finmeccanica. Sembra
dunque tramontato l'interesse dei cinesi di Insigma and China
CNR Corp, manifestato per Breda e Sts non piu' tardi di
qualche mese fa, cosi' come quello della francese Thales che
comunque puntava alla sola Ansaldo Sts
Oggi l'amministratore delegato e direttore generale di
Finmeccanica, Mauro Moretti, durante il suo primo incontro
con la comunita' finanziaria, ha detto che sono due i gruppi
interessati in questo momento nella data room aperta dal
gruppo sui conti delle due aziende. Gruppi che hanno chiesto
una proroga fino alla fine di agosto per poter presentare
un'offerta. Una decisione sulle eventuali offerte, ha
assicurato Moretti, sara' presa entro il mese di ottobre.
Massimiliano Zampini
(RADIOCOR) 01-08-14 16:46:48 (0494)NEWS,SITO,SOLE 3 NNNN

Il sole 24 ore 2006. All rights reserved.

-0- Aug/01/2014 14:46 GMT

NW : Exodus: Why Europe's Jews Are Fleeing Once Again

Exodus: Why Europe's Jews Are Fleeing Once Again


The mob howled for vengeance, the missiles raining down on the synagogue walls as the worshippers huddled inside. It was a scene from Europe in the 1930s – except this was eastern Paris on the evening of July 13th, 2014.

Thousands had gathered to demonstrate against the Israeli bombardment of Gaza. But the protest soon turned violent – and against Jews in general. One of those trapped told Israeli television that the streets outside were “like an intifada”, the Palestinian uprising against Israeli occupation.

Some of the trapped Jews fought their way out as the riot police dispersed the crowd. Manuel Valls, the French Prime Minister, condemned the attack in “the strongest possible terms”, while Joel Mergei, a community leader, said he was “profoundly shocked and revolted”. The words had no effect. Two weeks later, 400 protesters attacked a synagogue and Jewish-owned businesses in Sarcelles, in the north of Paris, shouting “Death to the Jews”. Posters had even advertised the raid in advance, like the pogroms of Tsarist Russia.

France has suffered the worst violence, but anti-Semitism is spiking across Europe, fuelled by the war in Gaza. In Britain, the Community Security Trust (CST) says there were around 100 anti-Semitic incidents in July, double the usual number. The CST has issued a security alert for Jewish institutions. In Berlin a crowd of anti-Israel protesters had to be prevented from attacking a synagogue. In Liege, Belgium, a café owner put up a sign saying dogs were welcome, but Jews were not allowed.


Yet for many French and European Jews, the violence comes as no surprise. Seventy years after the Holocaust, from Amiens to Athens, the world’s oldest hatred flourishes anew. For some, opposition to Israeli policies is now a justification for open hatred of Jews – even though many Jews are strongly opposed to Israel’s rightward lurch, and support the establishment of a Palestinian state.

As Stephen Pollard, the editor of the Jewish Chronicle, argues: “These people were not attacked because they were showing their support for the Israeli government. They were attacked because they were Jews, going about their daily business.”

One weekend in May seemed to epitomise the darkness. On May 24th a gunman pulled out a Kalashnikov assault rifle at the Jewish Museum in Brussels and opened fire, killing four people. The next day the results of the elections to the European parliament showed a surge in support for extreme-right ­parties in France, Greece, Hungary and Germany. The National Front in France won the election, which many fear could be a precursor to eventually taking power in a national election.

Perhaps the most shocking result was the surge in support for Golden Dawn in Greece. The party, which has been described as openly neo-Nazi, won almost 10% of the vote, bringing it three members of the European parliament.

In parts of Hungary, especially the impoverished north and east, Jobbik is the main opposition to the governing right-wing Fidesz. Jobbik won 14.7% of votes at the European elections. The party denies being antisemitic but even Marine Le Pen, leader of the French National Front, ruled out cooperating with them in the European parliament.

In November 2012, Marton Gyöngyösi, a senior Jobbik MP, called for a list to be made of Hungarian Jews, especially those working in Parliament or for the government, as they posed a “national security risk”. (Gyöngyösi later apologised and said he was referring only to Jews with dual Israeli-­Hungarian citizenship.)

Some saw the Brussels attack and the election results as dark portents. “At what point,” asked Jeffrey Goldberg, a prominent American Jewish journalist, “do the Jews of America and the Jews of Israel tell the Jews of Europe that it might be time to get out?” Around now, it seems.

GETTING OUT

A survey published in November 2013 by the Fundamental Rights Agency of the European Union found that 29% had considered emigrating as they did not feel safe. Jews across Europe, the survey noted, “face insults, discrimination and physical violence, which despite concerted efforts by both the EU and its member states, shows no signs of fading into the past”.

Two-thirds considered anti-Semitism to be a problem across the countries surveyed. Overall, 76% said that anti-Semitism had worsened over the past five years in their home countries, with the most marked deteriorations in France, Hungary and Belgium. The European Jewish Congress has now set up a website, sacc.eu, to give advice and contacts in the events of an attack.

“The tendency is very alarming,” says Natan Sharansky, chairman of the Jewish Agency, which links Israel with diaspora communities and organises immigration. “The level of concern about security in Europe is higher than in Asia or Latin America. This feeling of insecurity is growing. It’s difficult to imagine that in France, Belgium and many other countries Jewish people are told not to go out on the streets wearing a kippah.”

A survey by the Anti-Defamation League (ADL) in New York found similar results. The ADL Global 100 surveyed 53,000 adults in 102 countries. It found that 26% held deeply anti-Semitic attitudes, answering “probably true” to six or more of 11 negative stereotypes of Jews.

The highest levels of prejudice were found in the Arab world, with the Palestinian Territories topping the list at 93%, followed by Iraq at 92%. In Europe Greece topped the list at 69%, while France scored 37% and Belgium 27%. Britain had 8%, the Netherlands 5% and Sweden was the lowest at 4%. In Eastern Europe Poland had 45% and Hungary 41%. The Czech Republic was lowest at 13%.

But the picture is more complex than the survey suggests. Malmo, Sweden’s third-largest city, is one of the most unsettling places in Europe for Jews. Anti-Semitic attacks tripled between 2010 and 2012, when the community, around 700-strong, recorded 60 incidents. In October 2012 a bomb exploded at the Jewish community centre.

Jewish leaders accused Ilmar Reepalu, who served as mayor between 1994 and 2013, of inflammatory comments. Reepalu called for Jews to distance themselves from Zionism, and claimed that the Jewish community had been “infiltrated” by the Sweden Democrats party, which has its roots in the far-right. Reepalu has denied being anti-Semitic. But his remarks provoked a storm of protest and he was forced to retract them. Hannah Rosenthal, the former US Special Envoy for combating anti-Semitism, said Malmo was a prime example of the “new anti-Semitism” where hatred of Israel is used to disguise hatred of Jews.


It is not anti-Semitic to criticise the Israeli government or its policies towards the Palestinians, say Jewish leaders. A reasoned, open debate on the conflict is always welcome – especially now, when passions are running so high over Gaza. But the morbid obsession with the only democracy in the Middle East, they say, its relentless demonisation and the calls for its destruction are indicative of anti-Semitism.

Social media provides an easy platform for the spread of hate, which has been given impetus by the alliance between Islamists and the left, says Ben Cohen, author of Some of My Best Friends: A Journey Through Twenty-First Century Anti-Semitism. “Saying that Jews are the only nation who don’t have the right to self-determination, smearing Israel as a modern incarnation of Nazi Germany or apartheid South Africa, asserting that the ‘Israel Lobby’ manipulates American foreign policy from the shadows is unmistakably anti-Semitism.”

HEARTS TURNED EAST

In 1997 I wrote a book about Muslim minorities in Europe, called A Heart Turned East. It was optimistic, and, with hindsight, naïve of me. I travelled across France, Germany, Britain, Turkey and Bosnia. I hoped then that a tolerant, modern Islam could emerge in Europe, in the Ottoman tradition. The Ottomans had not been perfect, but they had been comparably tolerant – especially in comparison to the Catholic church. In France I met Muslim intellectuals, exiles and artists. They were resentful of their second class status, and had been scarred by racism and discrimination. But their anger was directed at the French authorities and they were keen to co-exist with their Jewish compatriots.

So what went wrong? The undercurrents had long been swirling, but had been little noticed. They date back to the Islamic revolution in Iran, the siege of Mecca and the Soviet invasion of Afghanistan in 1979, says Ghaffar Hussain, of the Quilliam Foundation, a counter-extremism think-tank in London. “Islamist extremism experienced a global upsurge post 1979. These events played into the hands of Islamists.” That anger was further fuelled by the Bosnian war, which helped nurture a global Muslim consciousness.

Many western Muslim communities are suffering an identity crisis, says Hussain. The politics of hate offers an easy escape and a means of blaming personal feelings on others. “In many cases it resonates with the life experiences of young Muslims. They feel alienated and disenfranchised, due to negative experiences, personal inadequacies or even cultural differences.”

Jews, Muslims, African and other immigrants once lived in reasonable harmony in the banlieues, sharing hard time. La Haine (Hate), a hugely successful thriller directed by Mathieu Kassovitz, released in 1995, starred three protagonists: one Jewish, one Afro-French and a third from a North African family. The violence and brutality are experienced by all three friends.

Such a film is nearly unimaginable nowadays. The turning point came in January 2006 with the kidnapping and murder of Ilan Halimi. A 23-year-old mobile telephone salesman, Halimi was lured into a honey-trap, abducted and held for three weeks in Bagneux, outside Paris. There he was tortured while his abductors telephoned his family, so they could hear his screams. Youssouf Fofana, the leader of the gang, was later sentenced to life imprisonment.

One of the most disturbing aspects of the case was that 28 people were involved in the kidnapping and many more living on the housing estate knew about it. “The murder of Ilan Halimi was the first murder of a Jew because he was a Jew,” says Roger Cukierman, president of the Representative Council of French Jewish Institutions (CRIF). “The prejudice and lack of humanity were impressive. It is unbelievable that in the 24 days he was held and tortured not one of the people involved even considered making an anonymous call to the police.”

Many blame the controversial comedian Dieudonne and his “quenelle”, supposedly a modified version of the Nazi salute, for fuelling hatred. Social media are awash with his followers, performing the quenelle in front of synagogues, Holocaust memorials, the school in Toulouse where three Jewish children and a teacher were murdered and even at the gates of Auschwitz.

Dieudonne denies that the gesture is anti-Semitic. The quenelle, he says, is a “gesture of liberation” from slavery. Dieudonne is also the creator of the "ShoahNanas" (Holocaust Pineapples) song, which he sings, accompanied by a young man wearing a large yellow star over a pair of pyjamas.

Now a new ingredient has been tossed into the cauldron: the wars in Syria and Iraq. The French government estimates that 800 jihadists are fighting in Syria, accompanied by several hundred from Britain. Among their number was Mehdi Nemmouche, who is accused of the attack on the Brussels Jewish museum. French police found he had in his possession a Kalashnikov assault rifle and a pistol, which they believed were used in the attack.

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The mob howled for vengeance, the missiles raining down on the synagogue walls as the worshippers huddled inside. It was a scene from Europe in the 1930s – except this was eastern Paris on the evening of July 13th, 2014.

Thousands had gathered to demonstrate against the Israeli bombardment of Gaza. But the protest soon turned violent – and against Jews in general. One of those trapped told Israeli television that the streets outside were “like an intifada”, the Palestinian uprising against Israeli occupation.

Some of the trapped Jews fought their way out as the riot police dispersed the crowd. Manuel Valls, the French Prime Minister, condemned the attack in “the strongest possible terms”, while Joel Mergei, a community leader, said he was “profoundly shocked and revolted”. The words had no effect. Two weeks later, 400 protesters attacked a synagogue and Jewish-owned businesses in Sarcelles, in the north of Paris, shouting “Death to the Jews”. Posters had even advertised the raid in advance, like the pogroms of Tsarist Russia.

France has suffered the worst violence, but anti-Semitism is spiking across Europe, fuelled by the war in Gaza. In Britain, the Community Security Trust (CST) says there were around 100 anti-Semitic incidents in July, double the usual number. The CST has issued a security alert for Jewish institutions. In Berlin a crowd of anti-Israel protesters had to be prevented from attacking a synagogue. In Liege, Belgium, a café owner put up a sign saying dogs were welcome, but Jews were not allowed.


Yet for many French and European Jews, the violence comes as no surprise. Seventy years after the Holocaust, from Amiens to Athens, the world’s oldest hatred flourishes anew. For some, opposition to Israeli policies is now a justification for open hatred of Jews – even though many Jews are strongly opposed to Israel’s rightward lurch, and support the establishment of a Palestinian state.

As Stephen Pollard, the editor of the Jewish Chronicle, argues: “These people were not attacked because they were showing their support for the Israeli government. They were attacked because they were Jews, going about their daily business.”

One weekend in May seemed to epitomise the darkness. On May 24th a gunman pulled out a Kalashnikov assault rifle at the Jewish Museum in Brussels and opened fire, killing four people. The next day the results of the elections to the European parliament showed a surge in support for extreme-right ­parties in France, Greece, Hungary and Germany. The National Front in France won the election, which many fear could be a precursor to eventually taking power in a national election.

Perhaps the most shocking result was the surge in support for Golden Dawn in Greece. The party, which has been described as openly neo-Nazi, won almost 10% of the vote, bringing it three members of the European parliament.

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In parts of Hungary, especially the impoverished north and east, Jobbik is the main opposition to the governing right-wing Fidesz. Jobbik won 14.7% of votes at the European elections. The party denies being antisemitic but even Marine Le Pen, leader of the French National Front, ruled out cooperating with them in the European parliament.

In November 2012, Marton Gyöngyösi, a senior Jobbik MP, called for a list to be made of Hungarian Jews, especially those working in Parliament or for the government, as they posed a “national security risk”. (Gyöngyösi later apologised and said he was referring only to Jews with dual Israeli-­Hungarian citizenship.)

Some saw the Brussels attack and the election results as dark portents. “At what point,” asked Jeffrey Goldberg, a prominent American Jewish journalist, “do the Jews of America and the Jews of Israel tell the Jews of Europe that it might be time to get out?” Around now, it seems.

GETTING OUT

A survey published in November 2013 by the Fundamental Rights Agency of the European Union found that 29% had considered emigrating as they did not feel safe. Jews across Europe, the survey noted, “face insults, discrimination and physical violence, which despite concerted efforts by both the EU and its member states, shows no signs of fading into the past”.

Two-thirds considered anti-Semitism to be a problem across the countries surveyed. Overall, 76% said that anti-Semitism had worsened over the past five years in their home countries, with the most marked deteriorations in France, Hungary and Belgium. The European Jewish Congress has now set up a website, sacc.eu, to give advice and contacts in the events of an attack.

“The tendency is very alarming,” says Natan Sharansky, chairman of the Jewish Agency, which links Israel with diaspora communities and organises immigration. “The level of concern about security in Europe is higher than in Asia or Latin America. This feeling of insecurity is growing. It’s difficult to imagine that in France, Belgium and many other countries Jewish people are told not to go out on the streets wearing a kippah.”

A survey by the Anti-Defamation League (ADL) in New York found similar results. The ADL Global 100 surveyed 53,000 adults in 102 countries. It found that 26% held deeply anti-Semitic attitudes, answering “probably true” to six or more of 11 negative stereotypes of Jews.

The highest levels of prejudice were found in the Arab world, with the Palestinian Territories topping the list at 93%, followed by Iraq at 92%. In Europe Greece topped the list at 69%, while France scored 37% and Belgium 27%. Britain had 8%, the Netherlands 5% and Sweden was the lowest at 4%. In Eastern Europe Poland had 45% and Hungary 41%. The Czech Republic was lowest at 13%.

But the picture is more complex than the survey suggests. Malmo, Sweden’s third-largest city, is one of the most unsettling places in Europe for Jews. Anti-Semitic attacks tripled between 2010 and 2012, when the community, around 700-strong, recorded 60 incidents. In October 2012 a bomb exploded at the Jewish community centre.

Jewish leaders accused Ilmar Reepalu, who served as mayor between 1994 and 2013, of inflammatory comments. Reepalu called for Jews to distance themselves from Zionism, and claimed that the Jewish community had been “infiltrated” by the Sweden Democrats party, which has its roots in the far-right. Reepalu has denied being anti-Semitic. But his remarks provoked a storm of protest and he was forced to retract them. Hannah Rosenthal, the former US Special Envoy for combating anti-Semitism, said Malmo was a prime example of the “new anti-Semitism” where hatred of Israel is used to disguise hatred of Jews.


It is not anti-Semitic to criticise the Israeli government or its policies towards the Palestinians, say Jewish leaders. A reasoned, open debate on the conflict is always welcome – especially now, when passions are running so high over Gaza. But the morbid obsession with the only democracy in the Middle East, they say, its relentless demonisation and the calls for its destruction are indicative of anti-Semitism.

Social media provides an easy platform for the spread of hate, which has been given impetus by the alliance between Islamists and the left, says Ben Cohen, author of Some of My Best Friends: A Journey Through Twenty-First Century Anti-Semitism. “Saying that Jews are the only nation who don’t have the right to self-determination, smearing Israel as a modern incarnation of Nazi Germany or apartheid South Africa, asserting that the ‘Israel Lobby’ manipulates American foreign policy from the shadows is unmistakably anti-Semitism.”

Youths make the "quenelle" gesture outside the a concert hall in Nantes where a banned show by French humorist Dieudonne M'bala M'bala, also known as Dieudonne, was due to take place, January 9, 2014. Critics say the comic's trademark straight-arm gesture is a Nazi salute in reverse. Dieudonne, 46, says it is anti-Zionist and anti-establishment, but not anti-Semitic. Stephane Mahe/Reuters

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HEARTS TURNED EAST

In 1997 I wrote a book about Muslim minorities in Europe, called A Heart Turned East. It was optimistic, and, with hindsight, naïve of me. I travelled across France, Germany, Britain, Turkey and Bosnia. I hoped then that a tolerant, modern Islam could emerge in Europe, in the Ottoman tradition. The Ottomans had not been perfect, but they had been comparably tolerant – especially in comparison to the Catholic church. In France I met Muslim intellectuals, exiles and artists. They were resentful of their second class status, and had been scarred by racism and discrimination. But their anger was directed at the French authorities and they were keen to co-exist with their Jewish compatriots.

So what went wrong? The undercurrents had long been swirling, but had been little noticed. They date back to the Islamic revolution in Iran, the siege of Mecca and the Soviet invasion of Afghanistan in 1979, says Ghaffar Hussain, of the Quilliam Foundation, a counter-extremism think-tank in London. “Islamist extremism experienced a global upsurge post 1979. These events played into the hands of Islamists.” That anger was further fuelled by the Bosnian war, which helped nurture a global Muslim consciousness.

Many western Muslim communities are suffering an identity crisis, says Hussain. The politics of hate offers an easy escape and a means of blaming personal feelings on others. “In many cases it resonates with the life experiences of young Muslims. They feel alienated and disenfranchised, due to negative experiences, personal inadequacies or even cultural differences.”

Jews, Muslims, African and other immigrants once lived in reasonable harmony in the banlieues, sharing hard time. La Haine (Hate), a hugely successful thriller directed by Mathieu Kassovitz, released in 1995, starred three protagonists: one Jewish, one Afro-French and a third from a North African family. The violence and brutality are experienced by all three friends.

Such a film is nearly unimaginable nowadays. The turning point came in January 2006 with the kidnapping and murder of Ilan Halimi. A 23-year-old mobile telephone salesman, Halimi was lured into a honey-trap, abducted and held for three weeks in Bagneux, outside Paris. There he was tortured while his abductors telephoned his family, so they could hear his screams. Youssouf Fofana, the leader of the gang, was later sentenced to life imprisonment.

One of the most disturbing aspects of the case was that 28 people were involved in the kidnapping and many more living on the housing estate knew about it. “The murder of Ilan Halimi was the first murder of a Jew because he was a Jew,” says Roger Cukierman, president of the Representative Council of French Jewish Institutions (CRIF). “The prejudice and lack of humanity were impressive. It is unbelievable that in the 24 days he was held and tortured not one of the people involved even considered making an anonymous call to the police.”

Many blame the controversial comedian Dieudonne and his “quenelle”, supposedly a modified version of the Nazi salute, for fuelling hatred. Social media are awash with his followers, performing the quenelle in front of synagogues, Holocaust memorials, the school in Toulouse where three Jewish children and a teacher were murdered and even at the gates of Auschwitz.

Dieudonne denies that the gesture is anti-Semitic. The quenelle, he says, is a “gesture of liberation” from slavery. Dieudonne is also the creator of the "ShoahNanas" (Holocaust Pineapples) song, which he sings, accompanied by a young man wearing a large yellow star over a pair of pyjamas.

Now a new ingredient has been tossed into the cauldron: the wars in Syria and Iraq. The French government estimates that 800 jihadists are fighting in Syria, accompanied by several hundred from Britain. Among their number was Mehdi Nemmouche, who is accused of the attack on the Brussels Jewish museum. French police found he had in his possession a Kalashnikov assault rifle and a pistol, which they believed were used in the attack.

Together with the weapons, police found a white sheet emblazoned with the name of the Islamic State of Iraq and the Levant (Isis), the militia judged too extreme even for al-Qaida, which has captured large swathes of Iraq.

In May 2012 in Toulouse a gunman killed seven people, including a teacher and three children, at a Jewish school. “Jews in France or Belgium are being killed because they are Jews,” says Cukierman. “Jihadism has become the new Nazism. This makes people consider leaving France.”

The murders have not dampened anti-Jewish hatred. On the contrary, they seem to have inflamed it. The spike in anti-Semitism has seen emigration to Israel soar. In 2011 and 2012 just under 2,000 French Jews emigrated to Israel.

In 2013, the year after the Toulouse attack, 3,289 left. In the first quarter of this year 1,778 Jews emigrated. “This year I expect 5-6,000 Jews to leave,” says Cukierman. “If they move to Israel because of Zionism, it’s OK. But if it is because of fear, then that is not pleasant. The problem is that democracy is not well equipped to fight against terrorism. What we saw in Toulouse and Brussels is terrorism.”

Member of the Belgian Parliament Laurent Louis speaks in front of a closed congress hall in Brussels May 4, 2014. Local authorities banned what they called "an anti-semitic congress" which was co-organised by Louis, local media reported. Francois Lenoir/Reuters

TERROR ATTACKS

Across Europe Jewish communities are investing in security infrastructure and boosting protection. After the Toulouse attacks, the Jewish Agency established a Fund for Emergency Assistance. So far it has distributed almost $4m to boost security at 116 Jewish institutions in more than 30 countries. In Britain the government pays £2.5m a year for security guards at Jewish schools.

There is a direct link between events in the Middle East, especially ­concerning Israel/Palestine and spikes in anti-Semitism, says CST spokesman Mark Gardener. Gaza has caused a new spike in attacks. “The situation is like a pressure cooker, awaiting any spark to set it off, with local Jewish communities the targets of racist attacks.”

So far, British Jews have not suffered a terrorist attack like Toulouse or ­Brussels, but not for want of jihadis trying. In 2011 Somali troops shot dead an al-Qaida leader in Africa when he tried to ram his car through a checkpoint. Documents found inside his car included detailed plans for attacks on Eton College, the Ritz and Dorchester hotels, and the Golders Green and Stamford Hill neighbourhoods of London, which have large Jewish populations.

The following year nine British jihadis were convicted of plotting terrorist acts including the potential targeting of two rabbis, and a husband-and-wife team from Oldham, north England, were convicted of plotting terrorist attacks on Manchester’s Jewish community.

Muslims are over-represented among the perpetrators of anti-Semitic incidents, says Gardener. “It is not as extreme as France, Belgium, Holland or Malmo, where the levels of anti-Semitism make life difficult for Jews, but it is a phenomenon. A large number of Muslims believe that 9/11 was a Jewish plot, that Jews run the media and that Jewish money controls politicians. Of course there are Muslim organisations that speak out against anti-Semitism and many Muslim leaders are fully aware of the damage anti-Semitism does to their own community.”

Yet the picture is not all bleak. In Berlin and Budapest Jewish life is flourishing. The epicentre of the Holocaust seems an unlikely centre for a Jewish renaissance. But the German capital is now home to one of the world’s ­fastest-growing Jewish communities, tens of thousands strong. There is a growing sense, particularly among younger Germans, that the city is incomplete without a Jewish presence, especially in the arts, culture and literature. The glory days of the pre-war years can never be recreated, but they can be remembered and used as inspiration for a new form of German-Jewish culture.

Berlin’s Jewish revival is boosted by influxes from Russia and a growing number of Israelis who have applied for German passports.

Budapest is home to the region’s largest indigenous Jewish community, usually estimated at between 80,000 and 100,000, although perhaps a fifth of that number are affiliated with the Jewish community. Still the city is home to a dozen working synagogues, a thriving community centre, kosher shops, bars and restaurants and each summer hosts the Jewish summer festival, which is supported by the government and the municipality. District VII, the traditional Jewish quarter, is now the hippest part of town, home to numerous bohemian “ruin-pubs”.

Communal life was moribund under Communism. Until recently, the ­Jewish establishment was perceived by many as insular and self-serving. Only now are a new generation of activists such as Adam Schönburger revitalising Jewish life, in part by focusing on cultural, social and ethical issues, rather than religion. Schönburger is one of the founders of Siraly, a Jewish cultural centre that will re-open later this year.

The result is a new confidence among many Hungarian Jews and a pride in their heritage. So much so that they are boycotting the government’s Holocaust commemoration events, accusing the government of whitewashing the country’s collaboration in the Holocaust – which the government strongly denies, pointing out that numerous officials, including the president, have admitted Hungary’s responsibility.

“We have to redefine what it means to be Jewish,” says Schönburger. “I don’t see many possibilities through solely religious continuity. We need to educate people about their heritage and have new reference points for them to feel connected. These can be cultural or through social activism, the idea of Tikkun Olam, ‘healing the world’.”

ENRICHING A KINGDOM

Few of the angry youths of the banlieues know that Muslims and Jews share a common history, of tolerance and co-existence.

Jewish life flourished under Islamic rule in Spain, an era known as the Golden Age, which produced some of the most important works of Jewish scholarship and a flowering of knowledge and science. Jews served as advisers to the Muslim rulers, as doctors, lawyers, teachers and engineers. Although there were sporadic outbreaks of violence, Jews living under Muslim rule in medieval times were far more prosperous, secure and integrated than those in Christian Europe.

When in 1492 the Jews were expelled from Spain, the Ottoman Sultan Bayezid II was so incredulous that he sent a fleet of boats to collect them. Such a prize, of doctors, lawyers, scientists and traders, could not be allowed to slip by.

“Do they call this Ferdinand a wise prince who impoverishes his kingdom and enriches mine?” he asked. The Jewish immigrants settled across the Ottoman empire, from Salonika to Baghdad.

Teaching about that common heritage, and the shared roots of Islam and Judaism could help defuse the hatred, argues Roger Cukierman. “We have to teach children, from the age of five or six to respect their neighbours, whatever their colour, religion or origin. This is not done today. We have to educate parents and the media, not to promote hatred.”

Moderate Muslim and Jewish leaders are working together against campaigns to ban circumcision and ritual ­slaughter, says Ghaffar Hussain, of the Quilliam Foundation. “We only hear about what the extremists are doing. But we need to challenge extremist narratives and work for a liberal, secular democratic space, where people from a wide variety of backgrounds can thrive and co-exist.”

The future of European Jewry is more than a question for Jews themselves, argues Natan Sharansky. “I would like to see strong Jewish communities in Europe, but they are more and more hesitant about what their future is. Europe’s leaders are working hard to convince that Europe is multicultural and post-nationalist. But if the oldest minority in Europe feels uncomfortable and is disappearing, that raises questions of education and citizenship. That is the challenge for Europe’s leaders.”

(BFW) BES Will Be Recapitalized With State Aid, SIC Reports



BFW 08/01 16:58 Espirito Santo Financial Portugal Unit Makes Insolvency Request
BFW 08/01 21:24 *BES WILL BE RECAPITALIZED WITH STATE AID, SIC REPORTS
BFW 08/01 16:50 *ESFG PORTUGAL UNIT REQUESTS INSOLVENCY

BES Will Be Recapitalized With State Aid, SIC Reports
2014-08-01 21:34:36.545 GMT


By Joao Lima
Aug. 1 (Bloomberg) -- Portuguese lender Banco Espirito
Santo will be recapitalized with state aid, TV station SIC
reports on its website, without saying how it obtained the
information.
* Decision will be announced in the evening of Aug. 3: SIC
* Solution is being negotiated by the new management team at
Banco Espirito Santo and by the Bank of Portugal, in
connection with the Finance Ministry: SIC
* Portuguese state may directly invest in Banco Espirito Santo
by subscribing shares and may provide a loan under the
contingent capital regime, consisting of bonds that can be
converted in stock if they aren’t paid at the end of a set
period: SIC
* NOTE Aug. 1: Banco Espirito Santo Shares Suspended After 50
Percent Drop {NSN N9MWO86TTDSP <go>}
Story link (in Portuguese): http://tinyurl.com/kfzuuyo


Link to Company News:{BES PL <Equity> CN <GO>}
Link to Company News:{ESF PL <Equity> CN <GO>}

For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}

To contact the editor responsible for this story:
Joao Lima at +351-21-340-4570 or
jlima1@bloomberg.net

>>> US Options trades & M&A

* ACHN calls are seeing interest following renewed M&A rumor. So far today 4.4K total calls have traded vs 920 total puts. Most notable are the ACHN Aug 8 calls (volume: 2730, open int: 2550, implied vol: ~131%, prev day implied vol: 6%) -- takeover chatter circulated back in June (most recently -- see June 20).

* RRC calls are seeing interest following takeover chatter. More than 13K calls have traded vs 720 puts with most notable volume in the RRC Sep 85 calls (volume: 5240, open int: 640, implied vol: ~34%, prev day implied vol: 2%) -- one transaction was 2K+ in size and traded on the offer. Co reported earnings earlier this week.

WSJ Don't Worry That Axa's Results Are Exceptional

Don't Worry That Axa's Results Are Exceptional

Exceptional. That's one word that could describe Axa's first-half results.
It is accurate not entirely because of decent operational performance and cost-cutting, but because, unlike Europe's banks, Axa's real boost to net income was from one-time gains.
The French insurer reported a 22% leap in net income from a year earlier to €3 billion ($4.02 billion)—spicing up expectations for a boost to its full-year dividend. However, changes in the market value of derivatives and other financial assets, which tumbled in the first half last year and generated a small gain so far this year, made a €265 million difference to its after-tax result. That accounts for half of Axa's profit gain.
Other changes in so-called exceptional items—including lower restructuring charges—added to net profit. So, all told, exceptional items accounted for 71% of the net-profit gain versus the year-ago period.
Underlying earnings were up 8%, driven by good performance in Axa's core life and nonlife-insurance businesses. That beat analyst forecasts.
The asset-management side disappointed with earnings down by 5% year-over-year, even though Axa Investment Managers and Alliance Bernstein both saw strong net fund inflows.
Even within these underlying results, however, analysts at Berenberg spotted some exceptional one-off tax-related gains. These amounted to €80 million more than last year in the life business. In the nonlife business there were €67 million of exceptional dividends in the investment portfolio.
But it may be churlish to dwell on this too much as profitability is improving, too. Axa has improved new-business margins in its life business by two percentage points to a healthy 34%. The nonlife side also widened its underwriting margin.
And, ultimately, what matters to most insurance investors is the dividend. Better underlying earnings and an even-better net result both bode well on that front.
Axa targets a payout rate of about 40% to 50% of underlying earnings. It has been at the bottom of that range for the past two years, but this year should see improvement.
Axa's current dividend yield of about 4.7% puts it ahead of its most comparable European rivals—Allianz on 4.3% and Aviva on 3%. That suggests Axa's stock should move on from here.

>>> Weekly Update

Weekly Market Update: Volatility Strikes Back
Fri, 01 Aug 2014 16:29 PM EST

Market volatility picked up this week the array of policy and geopolitical concerns that have lurked in the background for weeks started to hit home. The EU formally announced more biting economic sanctions against Russia over its meddling in Ukraine. Argentina entered a technical default after dragging its heels in settlement talks with holdout creditors. In the US, the FOMC maintained the pace of QE tapering and tweaked its policy statement to acknowledge somewhat higher inflation and continuing labor market slack, although the hawkish notes garnered more attention among analysts. The initial reading of Q2 US GDP showed economic growth came roaring back from the Q1 stumble. The July jobs report was less good than the excellent June numbers, but hardly weak. July confidence, ISM manufacturing and consumer confidence all came in much stronger than expected. The solid US numbers contrasted with another four -year low in European July CPI data, weak Japanese employment, manufacturing and employment numbers and continuing geopolitical stress emanating from Israel and Ukraine, and the VIX index of S&P500 volatility shot up toward the end of the week, trading as highs as 17.50 on Friday, its highest level since mid-March. During the week, the selloff in high-yield bonds accelerated, and for the month of July registered their biggest price declines in over a year, as lofty valuations and concerns about the potential for interest-rate increases drove a flight from funds that hold riskier debt. For the week, the DJIA tumbled 2.8%, the S&P500 declined dropped 2.7% and the Nasdaq lost 2.2%.

- The FOMC adjusted its statement in two notable ways. On the dovish side, commentary on the labor market acknowledged that conditions had improved and "there remains significant underutilization of labor resources". This is consistent with Chair Yellen's moves to watch a broader selection of employment indicators and furnish a rationale for keeping policy easy as unemployment falls toward 6% and beyond. On a more hawkish note, the statement acknowledged that inflation "has moved somewhat closer" to target and the FOMC "judges that the likelihood of inflation running persistently below 2% has diminished somewhat," removing the previous warning about the risks of persistently low inflation.

- The other major change in the decision was Philadelphia Fed President Plosser's dissent, in objection to the low rates for "a considerable time period" language. In a letter of explanation released on Friday, Plosser said the job market has improved more rapidly than expected yet the Fed hasn't shifted course, warning the FOMC's language was an inappropriate characterization of the future path of policy and could limit flexibility going forward. Dallas Fed President Fisher said that despite his opposition to some Fed policies, he felt the debate within the committee had shifted in his direction, especially given the FOMC statement language that inflation was moving closer target.

- The Q2 US GDP data was very strong, at +4.0% v +3.0%e, and the final Q1 reading was revised to -2.1% from -2.9%. Two components had an outsized role in sending the headline number higher: consumption and inventories. Consumption bounced back from a +1.2% rate in Q1 to a healthy +2.5% rate in Q2, concentrated in durable goods spending. Meanwhile, inventories added about 1.6 percentage points to the GDP figure, which more than offsets the 1.16 point drawdown in inventories seen in Q1.

- General Motors, Ford and Chrysler all reported another strong month of sales gains in July, though the numbers ran slightly below expectations. Ford and GM sales gained 10% and 9.4%, respectively, while Chrysler sales were up 20% y/y. Ford's truck sales recovered from June's slide lower, and GM's inventory fell. A GM sales executive said strong sales should continue through the balance of the year, with plenty of pent-up demand for trucks and SUVs. Toyota and Nissan both saw 11%+ gains in sales.

- Portugal's Banco Espirito Santo is at the edge of collapse after the firm's reported a giant €3.57 billion loss for the first half of the year. The bank holding company, RioForte, and units Espirito Santo International SA Espirito Santo Financiere all sought bankruptcy protection in Luxemburg. There were reports that the Portugal government would bail out the company with public funds, just days after the Bank of Portugal said the firm would be able to resolve its capital shortfall in public markets.

- Most of the energy majors reported quarterly results this week. Exxon, Chevron, and Conoco all beat earnings expectations on solid profit growth, thanks to higher oil prices, although all three saw production fall y/y. Second-tier names Occidental and Marathon also saw similar results. Refiners Phllips 66 and Valero both missed earnings expectations thanks to a slump in refining profits, as margins fell on the higher crude prices in the quarter.

- Pharma giant Amgen crushed expectations on 23% y/y net profit growth and hiked its FY14 guidance. Amgen also said it would cut 12-15% of its workforce and restructure operations. Pfizer and Merck saw solid profit gains, although revenue at both firms was stagnant and both tightened up guidance. Regarding its failed bid for AstraZeneca, Pfizer's CEO said he was still open to M&A deals, regardless of size.

- Kellogg and Colgate missed revenue expectations and Kellogg cut its FY14 guidance outlook. Kellogg saw revenue sag in key North America markets, while overall revenue fell slightly. Clorox's result was more muted, and the firm warned FY15 revenues would be flat. Procter & Gamble reported strong quarterly results, good FY15 guidance and disclosed a plan to sell off up to 100 of its brand holdings. Card companies Visa, MasterCard, and American Express all disclosed very strong results, with solid gains in payment volumes.

- Shares of momentum names Tesla, LinkedIn, and Twitter saw strong gains post-earnings. All three had good quarters, however shares of Twitter outperformed the bunch, gaining approximately 25% in after-hours trading on Tuesday. Twitter quieted doubters with big gains in MAUs, advertising revenue, and overall performance seen in the firm's second quarter.

- Two high-profile merger deals announced this week were immediately met with skepticism. Online real estate site Trulia agreed to be acquired by competitor Zillow for $3.5 billion in stock. Critics point out that neither company is profitable and the promised cost savings from the deal would get the combined company to about breakeven. Family Dollar agreed to be acquired by Dollar Tree for $74.50/share, in a total deal valued at $9.2 billion. Activist Carl Icahn has been pushing FDO to sell itself to one of the other dollar store operators, and analysts note that both firms have flagging sales, very different business models and few cost saving synergies.

- The one-way trade in EUR/USD turned around in the second half of the week after the US jobs report. By Wednesday, the pair had dropped to eight-month lows around 1.3370, driven lower by the continuing contrast between US economic recovery and Europe's slow slide into deflation, Russia sanctions, US GDP strength and hawkish notes in the FOMC statement. However the slightly less-than-perfect jobs report on Friday gave FX traders an excuse to buy the euro, sending the pair back to the highs of the week, around 1.3445.

- In July, cable posted its worst monthly performance since March 2013, down about 1.2%. GBP/USD tested below 1.6820 briefly on Friday. Analysts suggest the recent run of softer UK economic data has shifted market expectations on the timing of a rate hike to early 2015 from late 2014. In Japan, the weaker data sent USD/JPY out to six-week highs above 103.

- The Shanghai Composite remained relatively insulated from the turmoil in the US markets, rising another 2.8% this week following last week's 3.2% leap. Beijing's targeted mini-stimulus measures have clearly hit their mark, as China industrial profits grew at the fastest pace in 5 months, and the official manufacturing PMI topped consensus by three-tenths to reach 27-month high at 51.7. Comments from the National Bureau of Stats were tempered after these data, noting the low base effect in industrial profits and also warning about the risks remaining in the smaller sectors of the economy. The HSBC manufacturing PMI, which surveys less prominent firms, did decline to 51.7 from the 52.0 flash print but still remains at an 18-month high.