>>>. US Close Dow+0,12% S&P+0,04% Nasdaq-0,33%

Closing Market Summary: Stocks End Flat After S&P 500 Tests 1,900

The major averages ended the Tuesday session on a mixed note despite showing early strength. The S&P 500 added less than a point, while the Russell 2000 lost 1.0%.

Equity indices began the trading day on an upbeat note even though the April Retail Sales report that was released ahead of the open missed expectations. The report pointed to soft consumer spending, but had little effect on equities as the disappointing figures suggested there is little need as of yet to worry that the first rate hike from the Fed will come sooner rather than later.

With the data out of the way, the S&P 500 rallied out of the gate, charging past the 1,900 mark for the first time ever. Even though the index was able to creep above that psychological level during the first hour of action, it could not hold its high as the underperformance of small caps weighed on the overall sentiment. Furthermore, the lack of concerted leadership from either the cyclical or the countercyclical side contributed to the caution that was exhibited by market participants.

The four top-weighted sectors were mixed when compared to the S&P 500. Consumer discretionary (-0.3%) and financials (-0.1%) lagged throughout the session, while health care (+0.2%) and technology (+0.1%) registered modest gains after displaying some intraday volatility.

The health care sector posted a slim gain even as biotechnology ended on lows. The iShares Nasdaq Biotechnology ETF (IBB 230.51, -1.41) fell 0.6% after being up nearly 1.0% during the first hour of action.

Elsewhere, the tech sector was kept from pulling away from its flat line by the mixed performance among momentum names. LinkedIn (LNKD 147.67, -4.63) and Yelp (YELP 55.53, -1.07) lost 3.0% and 1.9%, respectively, while chipmakers also struggled, sending the PHLX Semiconductor Index lower by 0.8%.

Even though the top four sectors did not show much strength, the S&P 500 never dipped too far below its flat line as energy (+0.3%), industrials (+0.2%), and consumer staples (+0.2%) outperformed throughout the session. Notably, the industrial sector was underpinned by transports as the Dow Jones Transportation Average (+0.5%) climbed to a fresh all-time high.

On the fixed income side, Treasuries surged after the disappointing Retail Sales report and continued their advance into the afternoon. As a result, the benchmark 10-yr yield fell five basis points to 2.61%.

For the second day in a row, participation was well below average, with less than 600 million shares changing hands at the NYSE.

Economic data featured Retail Sales, Import/Export Prices for April, and March Business Inventories:

* Retail sales increased 0.1% in April after increasing an upwardly revised 1.5% (from 1.2%) in March. The consensus expected retail sales to increase 0.3%. Expectations of strong GDP growth in the second quarter were predicated on the unleashing of pent-up demand from weather-related delays. So far, that has not happened. Instead, sales growth trended in-line with income gains. The April Employment report showcased a 0.2% increase in aggregate earnings, which translated into a 0.1% increase in retail sales. Excluding transportation, retail sales were flat after increasing an upwardly revised 1.0% (from 0.7%) in March. The consensus expected these sales to increase 0.6%.  * Export prices, excluding agriculture, fell 1.2% in March after increasing 0.8% in the prior reading. Excluding oil, import prices were unchanged, which followed last month's uptick of 0.3%.  * Business inventories increased 0.4% in March after increasing an upwardly revised 0.5% (from 0.4%) in February. The consensus expected business inventories to increase 0.4%. Total inventories consist of manufacturer, merchant wholesaler, and retailers. Both manufacturers (0.1%) and wholesalers (1.1%) were known prior to the release. Only retailer inventories, which were flat after falling 0.1% in February, were unknown. 

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET, while April PPI and Core PPI will be reported at 8:30 ET.

* S&P 500 +2.7% YTD  * Dow Jones Industrial Average +0.8% YTD  * Nasdaq Composite -1.1% YTD  * Russell 2000 -3.4% YTD

>>> ISI Mentionned LULU as potential target for VF but also PUMA...

NEW YORK (TheStreet) -- Shares of lululemon (LULU), which specializes in developing yoga attire, are climbing after research firm ISI Group wrote that the company could become a takeover target for apparel maker VF Corporation (VFC).

WHAT'S NEW: VF Corp. operates like a private equity firm and should make one or two "significant" acquisitions every other year or so, ISI analyst Omar Saad wrote in a note to investors earlier. VF Corp. lacks a foothold in the strong and growing performance athletic apparel segment and a merger between the companies would be mutually beneficial because, unlike lululemon, VF has strong brand building and product innovation capabilities, as well as a top notch supply chain, the analyst contended. If VF Corp. acquires lululemon for $50 per share, such a deal could increase the former company's earnings per share by about $1.05 over the long-term, Saad estimated. ISI Group upgraded VF Corp. to Buy from Neutral and raised its price target on the stock to $75 from $65.

WHAT'S NOTABLE: ISI also listed Puma and Lands' End (LE), which was recently spun-off of Sears (SHLD), as other potential takeover candidates for VF.

>>> US Rumors today

* the DirectV (DTV) buyout by AT&T (T) may be announced in two weeks and may be $100/share.
* lululemon athletica (LULU): There were some cautious Sterne Agee comments related to VFC for LULU speculation (see 10:17 for color).
* Lorillard (LO) weakness being attributed to comments by RAI CEO in which she said there was no deal on the table and that they were satisfied with organic growth.

FT : Saudi Arabia moves to ease regional tensions with Iran

Saudi Arabia moves to ease regional tensions with Iran

A general view shows the Saudi capital R
Saud al-Faisal, Saudi foreign minister, has invited his Iranian counterpart to Riyadh
Saudi Arabia has invited Iran’s foreign minister to visit Riyadh to ease tensions between the two Gulf superpowers, which are at loggerheads across the Middle East.
Prince Saud al-Faisal, Saudi foreign minister, told a news conference in the capital Riyadh that he had invited his counterpart, Javad Zarif, “anytime he sees fit to come”.

“Our hope is that Iran becomes a part of the effort to make the region as safe as possible,” Mr al-Faisal said.
The invitation appeared to be an attempt to reconcile two states that sit on opposite sides of a regional sectarian divide that has widened during the unrest of the Arab spring.
Sunni Saudi Arabia and Shia Iran are involved in a series of proxy battles across the region, accusing each other of backing either violent sectarian groups or repressive governments from Syria and Lebanon to Iraq, Bahrain and Yemen.
Analysts said Saudi Arabia was mainly concerned about Iran’s backing for the regime of President Bashar al-Assad, which has recently made military gains in the Syrian civil war.
“Syria is number one on the agenda,” said Jamal Khashoggi, a leading Saudi commentator. “Syria is the manifestation of Iranian expansionism that Saudi is most worried about.”
Iran’s support for the Lebanese militant group Hizbollah is another major worry for Riyadh.
Tehran, meanwhile, is concerned that the Gulf states have been fomenting the extremist groups that have been fighting Damascus and destabilising neighbouring Iraq.
The invitation from Riyadh is thought to have been facilitated by Oman, Iran’s closest Arab ally. Mr Zarif visited Oman, and the United Arab Emirates, late last year in the wake of the historic deal that seeks to limit Iran’s nuclear programme in return for the easing of sanctions on the Islamic republic.
Iranian officials have said privately that attempts by Mr Zarif to visit Saudi Arabia in the wake of that deal were snubbed by Saudi officials.
The prospect of talks will raise hopes of a breakthrough similar to a bilateral security pact signed by Saudi Arabia and Iran in 2001. The deal ended decades of tensions that mounted after Iran’s 1979 Islamic revolution and the Iran-Iraq war of the 1980s.

WSJ : Tullow, Partners Lose Control of Ugandan Oil Field

Tullow, Partners Lose Control of Ugandan Oil Field
Repossession Is Latest in Ongoing Tensions Between Government and Oil Companies

KAMPALA, Uganda—Uganda has taken back control of the Ngasa oil discovery from U.K.-based Tullow Oil TLW.LN -0.78% PLC, China's Cnooc Ltd. 0883.HK +1.08% and France's Total SA FP.FR -1.13% after declining to renew its appraisal license, the energy and minerals development ministry said Tuesday.

The ministry said in a statement that although Tullow struck oil and gas at the field around 2008, the company didn't conduct further appraisal activities to establish the exact size of the reserves. Company officials said that the field's complex geology presented challenges for further drilling, forcing Tullow to halt operations.

The repossession is the latest in a series of spats—which are widely blamed for delaying the commercialization of Uganda's 3.5 billion barrels of crude reserves—between government and oil companies.

Related
Infrastructure Bottlenecks Delay Cnooc's Ugandan Oil Output
Oil Explorer to Spend $100 Million on Congo Drilling Campaign
Tullow May Sell Part of Stake in Ugandan Oil Field
"The time provided to complete the appraisal work on this field expired and no further extension for appraisal was given by government," the state-run petroleum exploration and production department said in a statement. "This discovery area will be considered for inclusion in the areas to be licensed in future."

A spokesman for Tullow said the company suspended the field, which extends beneath Lake Albert, because its development had become uneconomic.

Angelo Izama, an oil analyst with Ugandan-based think tank Fanaka Kwawote said that the development shows how Ugandan oil fields in environmentally sensitive locations are beginning to pose challenges to developers.

"It's a clear testimony that going forward, some Ugandan oil fields will require sophisticated technology as well as more resources to develop," Mr. Izama said.

Although the majority of the current Ugandan discoveries are onshore, some crude deposits extend beneath Lake Albert, which lies along the western border with Congo.

The Ngasa oil field becomes the second oil prospect to be repossessed by the government in less than two years, as Tullow, Total and Cnooc continue efforts to start crude production. The companies say they will spend more than $10 billion to develop Ugandan oil projects by 2017.

Uganda discovered commercial oil reserves in 2006, but production has been delayed by protracted talks over development plans and refining options.

Tullow said in February that it is considering selling part of its stake in Uganda to focus on Kenya.

(BFW) Symrise Selling 11.15m New Shrs in Accelerated Bookbuild

Symrise Selling 11.15m New Shrs in Accelerated Bookbuild
2014-05-13 17:11:44.513 GMT


By Jim Silver
     May 13 (Bloomberg) -- Shrs being sold today and tomorrow,
placement price will be set close to market price, co. says.
  * JPMorgan is bookrunner, Commerzbank is co-bookrunner

Link to Statement:NSN N5IVC73PWT1F <GO>
Link to Company News:JPM US <Equity> CN <GO>
Link to Company News:SY1 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:
Jim Silver at +1-212-617-7342 or
jsilver@bloomberg.net

>>> T-Mobile/Sprint regulators stand ground, attorneys say

T-Mobile/Sprint regulators stand ground, attorneys say

--> FCC still looks to DISH role in wireless
--> Questions remain on deal rationale

Softbank (TOKYO:9984) CEO Masayoshi Son’s campaign for winning over US telecom regulators still does not appear to be taking hold, several attorneys following the situation said.

Softbank has hired a bevy of new lobbyists, including former counsels to the House Judiciary Committee and Senate Judiciary Antitrust Committee, as part of an effort to presumably build support for a possible merger between Sprint (NYSE:S) and T-Mobile US (NYSE:TMUS). It also launched an advertising campaign in Washington DC.

Both congressional panels would likely hold hearings on a proposed deal if a merger agreement is reached. Politicians would also probably weigh in on a deal with letters to regulators that could influence merger reviews and conditions.

Softbank, the majority owner of Sprint, has made no secret of its interest in acquiring T-Mobile, but has faced considerable preemptive regulatory opposition from the Federal Communications Commission (FCC) and the Department of Justice (DoJ). One former FCC official said staff at the regulators simply believe a deal is not a “good idea.”

Still, the companies are reportedly considering making a push towards a deal this summer. Last week, the Wall Street Journal reported that T-Mobile is seeking a USD 1bn break-up fee, in addition to maintaining the T-Mobile brand and some of the management team post-merger.

There are two immediate factors complicating a possible deal, said Geoffrey Manne, an attorney at the International Center for Law and Excellence. These are the upcoming spectrum auction in 2015 and the ever-presence of DISH Network (NASDAQ:DISH).

This news service has previously reported that, according to attorneys, the FCC would like to see DISH play a role as a nationwide wireless carrier. The Colorado-based satellite TV provider has acquired a large amount of wireless spectrum, but has not detailed its plans.

The FCC’s spectrum auction will be the last opportunity in the foreseeable future for wireless carriers to purchase spectrum in public auction.

According to analyst Craig Moffett of MoffettNathanson, T-Mobile needs to acquire at least 20MHz of low-band spectrum to ensure its continued competitiveness. The company currently has twice as much spectrum per subscriber as Verizon (NYSE:VZ) and AT&T (NYSE:T), but its current spectrum is in the more difficult to deploy and utilize mid-band range.

Moffett added that the company will likely have to go to the markets for a capital raise to acquire this higher quality spectrum.

The need to see this auction succeed may be forcing the FCC to take a stronger stance publicly than it wishes to adopt privately, however, said Manne.

“The FCC needs all of these companies to come in full-bore for the spectrum auction,” Manne said. “They might be saying that these companies will not be able to make big spectrum gains through private transactions in order to incentivize participation in the public auction. In that case, their position might relax afterwards.”

The auction is viewed as important due to the quality of spectrum and the proceeds will be used to fund the national first responder network FirstNet. The FCC is feeling pressure after the disappointing H block spectrum auction this year that saw DISH pick up all licenses for the minimum reserve price.

Until the auction takes place in 2015, attorneys said they did not believe the odds are very favorable for Sprint to successfully acquire T-Mobile.

“Son is used to having the odds against him, but he seems to think that if he just lays out the business case well enough he can convince the agencies,” said Anand Raut, former antitrust counsel for the House Judiciary Committee and policy counsel for public interest groups. “That’s not how this is going to work . . . Sprint and the regulators are largely just talking past each other.”

DISH’s role continues to be a focal point for regulators.

While the FCC is not supposed to consider alternative deals when conducting merger investigations, the regulator does tend to consider other options, Manne said. It remains to be seen, though, whether the FCC would “stagnate” the wireless industry while it waits to see what DISH does with its wireless spectrum, he added.

Ergen may be trying to affect the FCC’s thinking from the sidelines. In an analyst call on 8 May, he said that DISH could not engage in a bidding war with Sprint, but added that a renewed bid for T-Mobile would be “of strategic interest” to the company if the FCC and DoJ barred Sprint from making the acquisition.

The basic logic of a Sprint and T-Mobile deal is also not air-tight, said Raut. The logic has long been given as establishing a “strong third” player to compete with wireless industry leaders AT&T and Verizon.

“They say that this is about making a solid third competitor. But you can’t just add subscriber numbers together and say ‘this is how strong they’ll be’ because that doesn’t tell you anything about the future. You have to look at the infrastructure of the networks and whether their spectrum portfolios are actually complementary. It’s not at all clear that they are.”

Sprint operates a CDMA network for voice, while T-Mobile operates a GSM network, said Raut. Such combinations are not impossible, as T-Mobile proved when it purchased CDMA-based operator MetroPCS in 2013, but MetroPCS’ spectrum was in a complementary band that was contiguous with T-Mobile’s. Much of T-Mobile’s spectrum is not contiguous with Sprint, noted Raut.

Both service providers are moving to voice over LTE, which would mitigate issues around technology differences, but are not close to rolling the service out comprehensively, according to analysts. This would also fail to address the issue of the gaps in the combined spectrum portfolio.

In addition, Sprint has failed to modernize its network, said Moffett. “Sprint has a surfeit of spectrum, but it hasn’t done the work to build this out and make it a competitive network,” he said.

“If you look at Sprint’s prices, they aren’t commensurate with the level of service. It would take an enormous capital expenditure to bring that not only up to an acceptable level, but to a level that would differentiate it enough to justify those high prices,” Moffett said.

Moffett agreed that Sprint’s and T-Mobile’s networks are not compatible in terms of spectrum holdings or technology, adding that Sprint made a similar mistake when it bought Nextel in 2005.

Sprint’s valuation implies it either will acquire T-Mobile or deliver on Son’s goal of building the “world’s best network,” Moffett said, but the analyst said he does not believe this is plausible.

Softbank declined to comment. Sprint and T-Mobile were not immediately available for comment.

>>> Germany Fin Min Schaeuble: Germany is doing better now than was believed was

Germany Fin Min Schaeuble: Germany is doing better now than was believed was possible 2 years ago
- Do not believe that Slovenia will need an aid program. 
- Monetary policy must scale back its dominant role; must return to "reasonable" interest rates. 
- Debt ratios suggest we cannot rule out a new crisis. Market liquidity points to new asset bubbles. Financial markets have almost excessive confidence.

>>> Allergan, Inc Pershing Square Calls for Allergan Board to Engage with Valean

Allergan, Inc Pershing Square Calls for Allergan Board to Engage with Valeant on its Offer, Calls for Nonbinding Shareholder Referendum on Merger - filing 

- Follow up: Allergan calls Pershing's effort a self-serving exercise 

***Valeant first made its $48.30 in cash and 0.83 Shares of Valeant Stock $46 billion hostile bid public back on April 22nd. Subsequent reports have focused on rumors Allergan was soliciting rival bids from Shire, JNJ or SNY