>>> Barron's Summary : Positive on TJX, GT, BEN, MSG, NBG; Cautious on EMC, NTAP

Barron's Summary : Positive on TJX, GT, BEN, MSG, NBG; Cautious on EMC, NTAP, ALK

- Cover story: Barrons Midyear Roundtable includes picks from Mario Gabelli (Kinnevik, IFF, IPG, CHMT, WFT, MSG), Bill Gross (BBN, PDI, PFF), Scott Black (SMCI, PDCE), Brian Rogers (AMAT, CNX, NEM, CVC, PRMSX, AVP), Meryl Witmer (INGR, Tate & Lyle), Fred Hickey (long on gold, silver, AEM; short on IBM), Oscar Schafer (Maple Leaf Foods, RLD, AMRI), Abby Joseph Cohen (SIX, BMY, Beijing Originwater Technology, Beijing Water Business Doctor, easyJet), and Marc Faber (long on GDXJ, gold, platinum, China Life Insurance, TRUE Telecommunications Growth Infrastructure Fund, BTS Rail Mass Transit Growth Infrastructure Fund; short on South African rand; pair trade long on SCIF, short on IWM). 

- Tech Trader: Cautious on EMC, NTAP: Tiernan Ray looks at small storage companies hoping to use flash drives or flash/disc drive combinations to upend storage giants; the upstarts include NMBL, Skyera, Tegile Systems, Maxta, and Nutanix. 

- Trader: Positive on TJX: Retailer has been one of the best-performing in its sector since the recession, taking advantage of missteps by JCP and SHLD to gain market share, and it has significant room to expand its store base in coming years; Cautious on ALK: Though shares are up, carrier faces a major threat from rival DAL, which has been increasing flights to and from Seattle, and with gains already booked, investors might want to disembark. 

- Features: Positive on GT: With auto sales booming in key North American, European, Middle Eastern, and African markets, shares could gain more than 50% within two years; Positive on BEN: Company has more than $8B in cash on its balance sheet, making it a ripe target for an activist investor to push for greater return of capital to shareholders; Positive on Tribune Company: Chicago-based broadcaster and publisher is largely overlooked by investors, but it has a number of valuable assets, and could see a 25% rise in share price if it sheds publishing business; Positive on ALTR, EA, LUV, TROW: Companies appear overpriced right now, but are likely to generate strong earnings growth over the next two years, catching up to their stock prices. 

- Small Caps: Cautious on BIG: Shares have risen after chief David Campisis turnaround efforts, but while new strategy could generate more earnings growth, stock appears to reflect much of that potential, and investors may be best served by taking their money off the table; Cautious on QLTY: Tank-truck operator has reported big gains, but with markets strong and expectations high, now may be a good time for investors to take profits. 

- Mutual Funds: Interview with Jason Brady, Portfolio Manager, Thornburg Strategic Income (top ten issuers: Mexican bonds, Acros Dorados Holdings, Samarco Mineracao, Prospect Capital, Dominos Pizza, Office Cherifien Des Phosphates, ABG Intermediate, Stena International, Affinion Group, Concord Funding). 

- Follow-Up: Positive on MSG: Company has a market value of $4.5B and no debt, but shares could see a 75% boost if companys teams, such as the Knicks, are revalued following Steve Ballmers $2B for the Los Angeles Clippers; Jane Mendillo, who is stepping down as the head of Harvards endowment, leaves a mixed track record. 

- European Trader: Positive on NBG: Banks American depository receipts and Athens-based shares dont reflect the progress it has made or its superior profile compared to other Greek banks. 

- Asian Trader: Chinas mini-stimulus should be a boon to railway sector as country expands its already-impressive rail network (Positive on Zhuzhou CSR Times Electric, CSR, China CNR, China Railway Construction Corp., China Railway Group). 

- Emerging Markets: Last weeks cut in the World Banks forecast for growth of 2014 emerging market GDP should tell investors the good times may not last. 

- CEO Spotlight: IPG chief Michael Roth talks about current trends in advertising, and says Ads, using market-driven intelligence, must come together in real time as audiences form. 

- Streetwise: The dollar seems to be starting another rally, but the effect of that on the market will depend on why the dollar climbs. - Source TradeTheNews.com

(ZH) ISIS Jihadists Release Shocking Photos Documenting Slaying Of 1700 Iraq


{http://bit.ly/1uuJbJP} link to web article
Several days ago we showed "gruesome" footage of the ISIS jihadists as they engage all opposing forces with unspeakable brutality, clearly designed to demoralize any resistance in their remarkable blitzkrieg which has so far allowed them to steamroll virtually unopposed from northern Iraq all the way to towns located some 50 miles from Baghdad.
Just what ISIS/ISIL's Baghdad strategy is remains unclear. According to Reuters, "in Baghdad on Sunday, a suicide attacker detonated explosives in a vest he was wearing, killing at least nine people and wounding 20 in a crowded street in the centre of the capital, police and medical sources said. At least six people were killed, including three soldiers and three volunteers, when four mortars landed at a recruiting centre in Khlais, 50 km (30 miles) north of Baghdad."
For now, the southern offensive appears to have been halted with Reuters reporting that "the rapid advance south towards Baghdad appeared to slow over the weekend", however this has been offset by "fierce fighting in the town of Tal Afar 60 km (40 miles) west of Mosul near the Syrian border."
Sunday's fighting in Tal Afar, a majority Turkomen town which is home to both Shi'ites and Sunnis, showed how volatile the deepening sectarian divisions have become.

 

Residents in Sunni districts accused Shi'ite police and army forces of launching mortar fire at their neighbourhoods, prompting ISIL forces stationed outside the town to move in.

 

"The situation is disastrous in Tal Afar. There is crazy fighting and most families are trapped inside houses, they can’t leave town," a local official said. "If the fighting continues, a mass killing among civilians could result."
More importantly, Iraq's resistance movements appears to be gathering steam as "volunteers were gathered by army to join fighting to regain control of the northern town of Udhaim from ISIL militants." As reported last week, the country's most influential Shi'ite cleric urged his countrymen to take up arms and defend the country against the hardline insurgents, many of whom consider Shi'ites as heretics, resulting in thousands of volunteers.
Which is perhaps why, in order to further demorallize the local population, ISIS militants boasted on Twitter that they had executed 1,700 Iraqi government soldiers, posting gruesome photos to support their claim, the NYT reported.
The authenticity of the photographs and the insurgents’ claim could not be verified, and Iraqi government officials initially cast doubt on whether such a mass execution took place. There were also no reports of large numbers of funerals in the Salahuddin Province area, where the executions were said to have been conducted.
If the claim is true, it would be the worst mass atrocity in either Syria or Iraq in recent years, surpassing even the chemical weapons attacks in the Syrian suburbs of Damascus last year, which killed 1,400 people and were attributed to the Syrian government. Remember that particular attack nearly culminated in a US land invasion of Syria,and led to a US vs Russia standoff in the military with dozens of warships prepared to fire at each other at a moment's notice.
As the NYT adds, "the latest attack, if proved, would also raise the specter of the war in Iraq turning genocidal, particularly because the insurgents boasted that their victims were all Shiites. There were also fears that it could usher in a series of reprisal killings of Shiites and Sunnis, like those seen in the Iraq war in 2005-7."
Authentic or not, the disturbing pictures appear to have had an effect with the office of the Shiites’ supreme spiritual leader, Grand Ayatollah Ali al-Sistani, Saturday night issued what amounted to a revision of the ayatollah’s call to arms on Friday, apparently out of concern that it was misinterpreted by many as a call for sectarian warfare. The statement, billed as “clarifying the position on taking up arms,” implored Iraqis, “especially those living in mixed areas, to exert the highest level of self-restraint during this tumultuous period.”
The claim of the mass execution appeared on a Twitter feed previously used for ISIS announcements, so whether or not the executions were genuine, the organization certainly intended to boast of them.
“We’re trying to verify the pics, and I am not convinced they are authentic,” said Erin Evers, the Human Rights Watch researcher in Iraq. “As far as ISIS claiming it has killed 1,700 people and publishing horrific photos to support that claim, it is unfortunately in keeping with their pattern of commission of atrocities, and obviously intended to further fuel sectarian war.”
We find it somewhat ironic that when photos of gruesome execuctions in the middle-east do not support "developed world" interests in the region, they are to be doubted. However, when a YouTube clip appears of a "mass execution" by an "insane dictator", the US Secretary of State promptly takes it as gospel and is used as a justification for invasion... almost worth a case study in hypocrisy.
So back to the ISIS picture dump:
The still photographs uploaded on the ISIS Twitter feed were bloody and gruesome, showing the insurgents, many wearing black masks, lining up at the edges of what looked like hastily dug mass graves and apparently firing their weapons into groups of young men who were bound and packed closely together in large groups.

 

The photographs showed at least five massacre sites, with the victims lying in shallow mass graves with their hands tied behind their backs. The number of victims that could be seen in any of the pictures numbered between 20 and 60 in each of the sites, although it was not clear whether the photographs showed the entire graves. Some appeared to be long ditches.

 

The photographs showed the executioners flying the ISIS black flag, with captions such as “the filthy Shiites are killed in the hundreds,” “The liquidation of the Shiites who ran away from their military bases,” and “This is the destiny of Maliki’s Shiites,” referring to Prime Minister Nuri Kamal al-Maliki.

 

Many of the captions were viciously mocking toward the purported victims. In one photograph, showing 25 young men walking toward an apparent execution site, where armed, masked men awaited, the caption read, “Look at them walking to death on their own feet.”

 

And another showed a couple hundred prisoners, all of whom had been made to stand, bent over from the waist with their hands clasped behind their backs, as armed men guarded them. All were in civilian clothes, and the caption claimed they had jettisoned their uniforms. “They were lions in uniform, and now they are just ostriches,” it read.

 

Other photographs showed prisoners, mostly young men, stuffed in large numbers in dump trucks and pickup trucks. They appeared extremely frightened.

 

A senior Iraqi government official, speaking on the condition of anonymity because he was not authorized to make press statements, said news of the executions was slow to circulate because Twitter had been blocked.“I don’t doubt they are real, but 1,700 is a big number,” he said. “We are trying to control the reaction. They are trying to bring back the 2005 to 2006 days.” Sunni and Shiite militias engaged in a wave of tit-for-tat killings of civilians during that period, killing tens of thousands.
As a reminder, using social media outlets to display fabricated propaganda in the form of video clips and pictures is nothing new, and the only variable is who benefits. First there was Syria of course, where fake YouTube clips of a chemical attack were used to nearly launch a false flag war. Then it was Egypt, when as we showed before, the Muslim Bortherhood staged a protest crackdown by the military regime in order to shore up popular upport in "The Muslim Brotherhood: The Best Straight-To-YouTube Actors Money Can Buy?"
So is the ISIL al-Qaeda spin off merely the latest entity to use social media propaganda in order to achieve strategic goals, or is the picture dump truly an archive of the gruesome actions the extremist group has conducted in its Iraqi blitzkrieg? We will let readers decide.
Below are some of the images released by ISIS overnight, courtesy of Long War Journal.
WARNING: Many of the images below are graphic and show the execution of Iraqi soldiers. The images are a selection of more than 60 published by the ISIS' Salahaddin Division. You can view the all of the photographs here.
ISIS fighters move in a convoy in Salahaddin province:
ISIS fighters open fire from a pickup truck as dismounted troops assault a base:
ISIS fighters travel in a captured Iraqi police pickup truck:
A captured American-made Iraqi Army Humvee:
Two ISIS fighters pose with captured military vehicles:
Two ISIS fighters pose over the body of a dead Iraqi soldier:

Iraqi soldiers are herded to a truck to be transported to their execution:

Iraqi soldiers are transported to the execution site:

ISIS fighter opens fire on Iraqi prisoners as they lie in a shallow ditch:

An ISIS fighter holds a US M-16 rifle as captured Iraqi soldiers lie face down on the ground:

An Iraqi soldier wore civilian clothes over his uniform in an attempt to disguise himself:
ISIS fighters form a line and execute the captured Iraqi soldiers:

>>> Casino rumoured to be considering buyout of CBD

Casino rumoured to be considering buyout of CBD

Casino, the France-based, supermarket chain, may attempt to buy out Companhia Brasileira de Distribuicao (CBD), according to unattributed rumours briefly mentioned in a Times market report.

The article noted that Casino is already an approximately 41% shareholder in CBD, a listed, Brazilian supermarket operator with a USD 12.7bn market cap.
Source The Times

>>> French state mulling taking stake in Alstom as deputies call into question G

French state mulling taking stake in Alstom as deputies call into question GE's offer 

The French state is considering teaming up with Japan’s Mitsubishi Heavy Industries and Siemens of Germany in its proposal to French power and trains group Alstom, le Parisien reported.

Quoting newswire AFP, the daily on Saturday noted comment from union metal works federation leader for CFE-CGC, Gabriel Artero that the state’s blueprint for the group’s future includes the option of the state taking a shareholding equal to to the German and Japanese parties.

Artero told AFP that one scenario would be Siemens taking on the French wind turbines operations as a sort of complementary partner. While Artero cautioned that the final proposal remains sketchy, unions would take issue with the state being the majority shareholder. The Japanese-German offer would come in at about EUR 9bn, according to a Reuters report quoted in Journal du Dimanche.

Unions are due to meet with government officials on Monday, le Parisien noted.

Meanwhile, JDD reported that all the players will keep busy over the weekend. MHI and Siemens have both convened board meetings with a view to making an appealing offer tomorrow (Monday), JDD noted without sourcing. Top shareholder Bouygues has not ruled one way or the other, a spokesperson for the group noted.

A source close to General Electric told the French language weekly that the company is standing firm in its commitment to a final deadline of 23 June for Alstom to accept or reject its offer.

JDD in a separate item reported on a document from 50-odd deputies opposing to the Connecticut giant gaining the upper hand with its EUR 12bn offer. These politicians instead called for a third way that would preserve the industrial group’s integrity. The solution, the writers suggested, would be to find French or other European partners for each of Alstom’s four units. The writers also called on Bouygues to either help develop such a structure or sell its own holding to the state.


Source Le Parisien, Journal du Dimanche

FT : Bob Diamond African venture misses $400m investment target

Bob Diamond has failed to secure the additional $400m he was targeting for his African venture after some investors balked at the second fundraising in six months, according to two people familiar with the situation.
The setback comes as some investors hesitated over pouring significant amounts of money into what is still an illiquid stock. Other investors, who did not participate in the current fundraising, added that Mr Diamond had demonstrated so far his M&A ability, but had yet to show he could make money running a bank in Africa.

Mr Diamond, the former chief executive of Barclays, wanted to increase the war chest of his Atlas Mara cash shell for more acquisitions in the African banking sector. But the fund, which secured $325m in December thromsg 4ugh an initial public offering on the London Stock Exchange, is set to fall short of the $400m target set for the second fundraising, securing instead in excess of $300m.
“It is not where they thought they were going to be,” said one person familiar with the situation. Another person confirmed the $400m would not be reached, but said that Mr Diamond received strong support from the current shareholder base.
Mr Diamond was ousted from Barclays in 2012, after the bank was fined for manipulating the Libor interbank lending rate.
The setback will not torpedo the deals that Atlas Mara has already secured, however. The vehicle announced its first deal in March, paying $265m in cash and shares to buy BancABC, a medium-sized lender with operations in Botswana, Mozambique, Tanzania, Zambia and Zimbabwe, and a small stake in Union Bank of Nigeria. The vehicle also signed a deal to buy a majority stake in the Development Bank of Rwanda through its privatisation.
After failing to reach its fundraising target, Atlas Mara could raise debt in the next few months, rather than equity, to finance acquisitions. Mr Diamond has made clear that the acquisition spree was not over, saying in March: “This is the beginning . . . Watch this space.”
Rival bankers and investors believe that Atlas Mara’s next acquisition is likely to be in the prized – but expensive – west African market, home of Nigeria, the continent’s largest economy.
Sub-Saharan Africa is attracting bankers because most of the region’s population of about 1bn do not use banking services. Only a quarter hold a bank account, and fewer than 5 per cent have a credit card. At the same time, though, the region is enjoying its best economic expansion in a generation.
Mr Diamond set up Altas Mara last year in partnership with Ashish Thakkar, the 32-year-old head of Mara Group, a conglomerate with operations in 19 African countries. Mr Diamond and Mr Thakkar personally invested $20m in the venture and they invested again more funds in the second fundraising.
Atlas Mara declined to comment.

WSJ : Siemens, Mitsubishi Heavy Prepare Joint Bid for Alstom Energy Assets

Siemens, Mitsubishi Heavy Prepare Joint Bid for Alstom Energy Assets
Mitsubishi Targets 10% Alstom Stake as Part of Offer

An Alstom employee inspects the wiring on a turbine at Alstom SA's turbine refurbishment plant in Rugby, U.K. Bloomberg News
FRANKFURT—German engineering company Siemens AG SIE.XE +0.01% and its Japanese peer Mitsubishi 7011.TO +0.77% Heavy Industries Ltd. plan Monday to make a joint offer for large chunks of Alstom SA ALO.FR +0.08% 's energy business, entering a bidding war with General Electric Co. GE +0.30% for one of France's industrial jewels, according to people familiar with the companies' plans.

As part of the offer, Mitsubishi aims to buy up to 10% of Alstom from Bouygues SA, EN.FR -0.70% which currently holds 29.3% of the company, two of the people said. French public investment bank BPI France would buy another portion of the Bouygues stake, potentially alongside the French government, these people said.

A Bouygues spokesman said Sunday that Mitsubishi hadn't approached the company to discuss an acquisition of its stake in Alstom. He reiterated that Bouygues is committed to keeping its stake in Alstom for the long run.

The terms of the proposal were still in flux Sunday before a meeting of Siemens's supervisory board, these people said.

As part of the planned offer, Siemens aims to transfer its rail business to Alstom, creating a European champion in train construction and rail engineering, the people familiar with the talks said.

A joint bid by Siemens and Mitsubishi could derail an earlier offer from GE, whose $17 billion for Alstom's energy assets has already been tentatively approved by the company. GE has set June 23 as a deadline for Alstom to formally approve its offer.

But approval of the GE bid by Alstom's board doesn't mean the U.S. powerhouse has already won the bidding war.

French Economy Minister Arnaud Montebourg has criticized the GE bid, saying it was unacceptable and threatened France's economic sovereignty. Mr. Montebourg has subsequently encouraged Siemens to make its own offer for Alstom's businesses, which also include a rail division that manufactures the TGV high-speed train.

WSJ : France Working to Reduce U.S. Fine on BNP Paribas

France Working to Reduce U.S. Fine on BNP Paribas

French Bank Fined $10 Billion Over Violating U.S. Sanctions Rules PARIS—The French government has made progress in convincing U.S. authorities to moderate a $10 billion fine on French bank BNP Paribas, BNP.FR +0.08% Finance Minister Michel Sapin said Sunday.

"I think we have made progress toward more equitable sanctions," Mr. Sapin said Sunday on Europe 1 radio. "I hope we're close [to a settlement] because the uncertainty is not good for the French economy."

U.S. authorities are pushing BNP Paribas to pay more than $10 billion and plead guilty to settle investigations into its alleged transactions with Sudan, Iran and other countries subject to U.S. sanctions, according to people familiar with the matter.

The bank has disclosed discussions with U.S. authorities and said that potential fines could be "far in excess" of the $1.1 billion it had previously set aside to cover possible penalties. BNP Paribas has said it is cooperating with the investigations.

The French government has sought to influence the penalty negotiations. In a letter to U.S. President Barack Obama two months ago, French President François Hollande said the sanctions shouldn't be "unfair and disproportionate," a government spokesman said earlier this month.

On Sunday, Mr. Sapin said the government is hoping for "sanctions on the past, not on the future."

"I don't want there to be sanctions that would prevent this bank from financing the French economy in the future," Mr. Sapin added.

France’s Sapin Says GE May Improve Bid for Alstom Energy Assets

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France’s Sapin Says GE May Improve Bid for Alstom Energy Assets 2014-06-15 10:15:45.946 GMT

By Francois de Beaupuy June 15 (Bloomberg) -- French Finance Minister Michel Sapin says on i-Tele, Europe 1 radio he expects GE will improve its offer for Alstom’s energy assets, without specifying how. * Mitsubishi Heavy Industries involvement makes Siemens bid more attractive: Sapin * Sapin says he has no preference among bidders; Alstom to decide own future; French govt won’t decide for co. * France is “weighing” in on talks because govt has responsibility to defend country’s “general interest,” as in the U.S., U.K., Germany or Italy * Sapin said govt’s interest includes jobs, decision centers, turbines, services for nuclear plants * Sapin spoke on i-Tele, Europe 1 radio

NOTE: GE Said to Plan Alstom Push as Siemens, Mitsubishi Mull Bid NSN N720606TTDSD <GO>

Link to Company News:7011 JP <Equity> CN <GO> Link to Company News:ALO FP <Equity> CN <GO> Link to Company News:GE US <Equity> CN <GO> Link to Company News:SIE GR <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: Francois de Beaupuy at +33-1-5365-5051 or fdebeaupuy@bloomberg.net

Walgreens May Bid for Boots by Feb. in Tax Move: Mail on Sunday

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Walgreens May Bid for Boots by Feb. in Tax Move: Mail on Sunday 2014-06-15 11:25:14.80 GMT

By Mathew Carr June 15 (Bloomberg) -- Walgreens may move to Britain for tax purposes as part of $100b restructuring that could include acquisition of Boots, the U.K. pharmacy chain, according to Mail on Sunday. * Illinois-based Walgreens, which already owns 45% of Alliance Boots, could start bid before original deadline of Aug.: newspaper * A move to Britain would cut U.S. co.’s corporate tax rate to 21% from 35%: Mail * Walgreens, which has 6,800 U.S. pharmacies and has been criticised in America for tax-cut plans, declined to comment on possible locations; says considering options and “will do what is in the best long-term interest of our co. and its shareholders”: Mail * NOTE: BI Research: Walgreens May Advance Alliance-Boots Deal, Ensure Tax Inversion, NSN N5X5FT6K50XZ<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: Mathew Carr in London at +44-20-7073-3531 or m.carr@bloomberg.net To contact the editors responsible for this story: Lars Paulsson at +44-20-7673-2759 or lpaulsson@bloomberg.net Rob Verdonck, Mark Bentley