TheChek News Flow

EU's Barnier: Will examine legality of French decree on foreign takeovers under EU law

- French decree could be a possible limitation on free movement of capital 

- France must notify the measures to the EU 

- EU rules do permit protection of strategic and essential assets 

- National measures must not lead to protectionism 

**Note on May 14th (FR) France govt said to have issued decree to prohibit foreign takeover of strategic firms - financial press - France Industry Min Montebourg said the new 'blocking' measures (adding 5 sectors to the current 11) are considered strategic; considers Alstom as strategic - French press interview

“The market is dangerous right now,” said Tepper, who gained a reputation in late 2008 for his prescient bet that US banks would survive the financial crisis. Last year, his $20 billion Appaloosa Management distressed-debt hedge fund earned a return of almost 40 percent, net of fees — enough to give Tepper a personal $3.5 billion payday.

But the good times could be coming to an end, he said, adding it’s “nervous time.”

Central banks are too complacent these days, Tepper said in a one-on-one interview here with Anthony Scaramucci, the founder of SkyBridge Capital at the SALT conference — the annual get-together of the hedge-fund sector’s heavy hitters that also draws movie stars and politicians, who mix it up with Wall Street’s brightest stars in the freewheeling atmosphere of this desert casino town.

Tepper said the European Central Bank “better ease in June” given the low level of inflation there. “If they don’t, it may be too late,” he warned.

While most of the financial world, and central bankers, have focused on inflation, he said deflation could be worse, pointing to the tepid economic growth more than five years after the financial crisis.

“I’m not saying go short,” he told the investors in the audience. “I’m just saying don’t be too frickin’ long right now.”

Tepper, known for his salty language, cleaned it up for the crowd until he told a story about how his fund’s recent winning streak followed his decision in 2008 to make sure all food banks, shelters and pantries in his home state of New Jersey had enough money to keep going.

“So you believe in karma?” asked Scaramucci.

“Are you f–king kidding me? Of course I believe in that sh-t” replied Tepper.

Tepper started his hedge fund in 1992 after a stint helping put Goldman Sachs’ junk bond operation on the map. The 56-year-old investor, who proudly touts his “inner city” roots, was considered too rough to be named partner. “I couldn’t stand that place,” he said, so he struck out on his own and starting lining up investors for a hedge fund.

An investor who gave him $1 million in 1992 would have $149 million today — one of the best returns in the industry.

The French government is understood to be trying to set up an alternative to the proposed EUR 12.35bn sale of the energy operations of Alstom to listed Connecticut-based conglomerate General Electric (GE), French weekly La Lettre de L’Expansion reported. The unsourced report said that French Finance and Economy Minister Arnaud Montebourg is believed to be busy creating a consortium of French companies that could involve industrial groups Areva, Thales and Safran, as well as state-owned financial services group Caisse des Depots et Consignations (CDC). The report claimed that Thierry Breton has been acting as the adviser to Montebourg on that matter.

This development was also reported in daily Les Echos, which referred to comments made by Thales chairman and chief executive Jean-Bernard Levy, who denied that his group was involved in the matter and that Montebourg had contacted Thales.

He then added that Thales was looking for opportunities to acquire businesses, especially companies operating in the railway signaling sector.

Source La Lettre de l'Expansion, Les Echos

US Market closed Lower, Small cap leaded the move ( Russel 2000 -1,6%), Out of the five largest sectors that represent more than 70.0% of the S&P500, consumer discretionary (-1.1%), financials (-0.8%), technology (-0.6%), and industrials (-0.8%) lagged throughout the session, while health care (unch) displayed relative strength thanks to modest gains in biotech. The iShares Nasdaq Biotechnology ETF (IBB 231.41, +0.90) advanced 0.4%. The weakest sector of the day—consumer discretionary—suffered from noteworthy losses among apparel retailers. Shares of Fossil (FOSL 100.00, -11.45) tumbled 10.3% after the company's cautious guidance overshadowed its earnings beat. Volume were belwo average @ 600mil shares... Japan Q1 GDP grew at a 3-year high of 5.9% on annual basis, as consumers rushed to make advance purchases before the Apr 1st start of higher sales tax and businesses invested generously...- Shanghai Composite remains under pressure on renewed concerns over China's

rate of growth in the wake of disappointing April economic data. China National...Nikkei -1,07% HS+0,35%...Shanghai -0,70%

Eur$ S&P Fut flat European fut -0,10%

Macro

- French Govt Publishes Decree on Foreign Investment, French Decree Lets Govt Block Some Foreign Takeovers

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