>>> Whirlpool misses by $0.13, beats on revs; reaffirms FY14 EPS guidance

Whirlpool misses by $0.13, beats on revs; reaffirms FY14 EPS guidance

Reports Q1 (Mar) earnings of $2.20 per share, $0.13 worse than the Capital IQ Consensus Estimate of $2.33; revenues rose 2.7% year/year to $4.36 bln vs the $4.29 bln consensus.
  • Co reaffirms guidance for FY14, sees EPS of $12.00-12.50 vs. $12.31 Capital IQ Consensus Estimate.
  • Whirlpool North America reported first-quarter net sales of $2.3 billion compared to $2.2 billion in the same prior-year period, an increase of over 4 percent.
  • Whirlpool Europe, Middle East and Africa reported first-quarter net sales of $720 million compared to $668 million in the same prior-year period. Excluding the impact of currency, sales increased ~ 4 percent.
  • Whirlpool Asia reported first-quarter net sales of $166 million compared to $187 million in the same prior-year period. Excluding the impact of currency, sales decreased approximately 4 percent.
  • Guidance Details: For the full-year 2014, the company expects to generate free cash flow of approximately $700 million. Included in this guidance are restructuring cash outlays of up to $150 million, capital spending of $625 million to $675 million and U.S. pension contributions of ~$160 million.

(Le Monde) The State is invited in the discussions between Alstom and General El

Link to Google Treanslation :{http://bit.ly/1ht0lVI}
Link to Original in French : {http://bit.ly/1fdxx4m}

The file looks pest for young Valls government. The U.S. General Electric looks good to Alstom, the tricolor specialist in energy and transport infrastructure, as revealed by Bloomberg, Thursday, April 24. He covets its activities in energy, more than 73% of Alstom's activities. Priced around 10 billion euros for these assets is mentioned, not including the 2 billion cash housed in Alstom Power.
Reacting Friday, April 25 for the first time these revelations, Arnaud Montebourg, the Minister of Economy, sailing his intentions: "The government is working on alternatives and contingencies than imagined alone and without the government does Alstom has been informed, "he says in the world.

"Alstom is the symbol of our industrial power and French ingenuity. In this case, the government expresses a concern and patriotic vigilance.

This high vigilance is focused on the serious risk of loss of a center of decision, the desire and the need to strengthen our industrial base by getting French industrial relocations in France , and the number of jobs lost or created in such operations. "

"I met Mr. Patrick Kron yesterday. With the Prime Minister, will meet soon President General Electric to put the dialogue on the grounds of these concerns, "concluded the Minister.

AN AGREEMENT THIS WEEKEND ?

The discussions should s' speed , some evoking the possibility of an agreement once this weekend. The price of Alstom shares was suspended on Friday morning before the opening. The project is led directly by Patrick Kron, CEO of the rigid group. The leader should, moreover, according to our information, s' explain Friday afternoon with its directors.

Mr. Kron, traveling abroad, had to return urgently to Paris Thursday afternoon. According to our information, the government has even sent a car to recover the boss Alstom at Le Bourget airport for take Bercy all sirens blaring, where he met Arnaud Montebourg. Mr. Kron was then received at the Elysée by Emmanuel Macron, the Deputy Secretary General of the Presidency of the Republic.

The hypothesis of a butchering giant Alstom by Connecticut falls in any case at the worst time when many traffic champions, giant Publicis advertising and cement Lafarge , are poised to move their headquarters outside of France on the occasion of transnational mergers, the first in the Netherlands and the second in Switzerland .

As such, the manufacturer of the TGV is a national icon, with its 93,000 employees, including 18,000 in France, and the role of leader of a center of excellence in engineering trades that allow the tricolor of float worldwide.

This status had justified a resounding public rescue in 2004, when the group through a bad patch. At the time, the decision to fly to the rescue of endangered flagship was taken by Francis Mer, Minister of Economy, but the rescue operation itself, including negotiation top flight with Brussels, had was driven closer by his successor Nicolas Sarkozy a ... It will be difficult for the Dutch government let go under the American flag 70% of a group that was saved by Nicolas Sarkozy .

GENERAL ELECTRIC, MOST OF AMERICAN FRENCH

Given the strategic importance of energy Alstom's activities, the government might have the means to s' interpose . But it is not as simple. First, because General Electric has nothing unwanted predator. Then, because Alstom needs a backing to strengthen a balance sheet too limited.

Without consteste, General Electric and is the most French of American through its joint venture established in 1974 with the former Snecma, now Safran in aircraft engines. The chaired by Clara Gaymard in France group employs 11,000 employees. The company showed their credentials by implanting in Belfort - ex-bastion of Alstom turbines - with European headquarters.

So when Areva was sold in 2009 its subsidiary, Transmission & Distribution, the French government was very concerned about spare the susceptibilities of the candidate General Electric, while supporting the project tricolor represented by Alstom and Schneider. For the U.S., put his hand on energy activities including Alstom allow him to recover the transmission activity that had eluded him.

This acquisition forced the French to s' borrow heavily, when he was abused in its markets. To save its balance sheet, Alstom plans to introduce in exchange its transport subsidiary. But experts consider this insufficient operation. As a sinister omen, the Standard & Poor's has also lowered a notch Thursday Alstom notation, pointing sluggish European markets for several years.

SOLUTION "TO THE PSA PEUGEOT CITROËN "

For several months, the government itself questioned the future of the French industrial flagship. Bercy was even ordered and received in early 2014, a report by Roland Berger Strategy firm.

According to our information, the report called for further cooperation between Alstom and its major partners. Or to explore the path of rapprochement with Areva , Siemens and Schneider was suggested. Mentioned as a solution "to the PSA Peugeot Citroën, "with a capital increase and the formation of a round table bringing together state and an industrial shareholder.

"But that does not hold water because, unlike the Chinese Dongfeng who wanted to strengthen its technical collaboration with PSA, no partner has wanted to enter in Alstom's capital, "says one close to the situation. Yet it is this path that could try to push the state.

For over a year, in any case, Patrick Kron consider all solutions. It would thus be concluded that General Electric is the best option. "In the long term, there is a real complementarity between energy activities of Alstom and GE argues a professional. They complement each other well geographically French is hard on the steam turbine while the U.S. is less ... "

However, this Franco-American wedding will be difficult to justify the executive even though the January 14 François Hollande called for the creation of a "Airbus energy."

"There is an energy that Boeing is prepared," scoffs one observer. Discussions with Siemens have not led. German wanted to hand over power to him Alstom and sell its transport business. But Patrick Kron has held such approximation socially costly.

>>> Buy Glencore Sell Anglo American -

{GLEN LN Equity AAL LN Equity GRT D<GO>}

* Glencore - (315.85p)
- Stock has been an UP of SXPP on the last few weeks (7% of underperf on the last 3 months)
- volume growth/cost savings to compensate for a less favourable commodity mix BUT Co should deliver the strongest EPS growth rates on the next 3y (c25% vs 7% for its peer group)
- FCF policy and constant debt level should help ability of company to boost divident and return cash back to shareholders sooner that expected by the market.
- Stock is trading with a discount to peers on a PE basis (9.4 x 2015e vs 10.3 for peers)
- Q1 production on 6th of May

* Angl american - (1,552p)
- Stock has rerated on the last few weeks.
- Stock has OP SXPP by 12% on the last 3 months, upside look limited
- FY14e-15e should be tougher for AA because of Copper & Iron Ore, South Africa still at risk
- FCF generation should disappoint investors

* The Spread is trading on historic low levels as shown below, I am expecting a quick rebound to come back around teh 0.22 levels (7.5%/8% from here)

Buy Glencore Sell ANGLO

Standard - WPP boss Sir Martin Sorrell mocks Publicis and Omnicom 'soap opera'

WPP chief executive Sir Martin Sorrell today mocked advertising rivals Publicis and Omnicom’s tax problems with their delayed mega-merger, saying “it’s turning into a soap opera”, and he said clients were reacting as his company won nearly £1 billlion in new billings in April alone.

Revenues in the first three months of the year jumped 7% on a like-for-like basis – ahead of Publicis and Omnicom – to £2.57 billion.

Maurice Levy, boss of France’s Publicis, and John Wren, head of America’s Omnicom, announced merger plans to create the world’s largest advertising group, overtaking WPP, last July but they have had to admit in recent days that it is taking longer than expected to persuade regulators in France, the UK, the Netherlands and China.

Sorrell told the Evening Standard: "It's turning into a soap opera. Clearly bosses John Wren and Maurice Levy are unhappy with each other. If you listen to the two first quarter conference calls, it was like two ships passing in the night. Levy said there was only one tax problem – with the French. Wren a couple of days later contradicted him.”

Sorrell, who was making his strongest comments yet about the merger of his two rivals, suggested doubts about the merger failing have risen. “Both companies have said if they merge, it'll be fine and if we don't merge, it'll be fine. The PR positioning has dramatically changed."

Sorrell said WPP has enjoyed a “surge” in new business wins, partly as a result of the Publicis and Omnicom merger, as clients “react” to the changing landscape.

WPP picked up almost £1bn in billings from winning Mark & Spencer, Vodafone, Compare the Market and Pepsi in China in just April alone.

Publicis said earlier this week it was still "confident" of winning regulatory approval of the merger that would see the combined company registered in the Netherlands and resident in the UK for tax purposes.

Fwd:>>> Buy Marks& Spencer Sell Ahold - Follow Up on trade idea

Spread is up 4.9% since recommendation - I will take profit on half of the position.
Laurent

----- Original Message -----
From: LAURENT CHEKROUN ()
To: LAURENT CHEKROUN ()
At: Apr 22 2014 15:58:58

The spread is +4% since we set up on thursday....continue to think that there is some decent potential on this one.

we initiated @ 30.90 (Ratio), trading now @ 32.15 (4% higher), will start to unwind @ 34 (+10%)

Laurent

----- Original Message -----
From: LAURENT CHEKROUN ()
At: Apr 17 2014 12:22:05

{MKS LN Equity AH NA Equity GRT D <GO>}

* Marks & Spencer
- Company pulished on the 10/04 and was weak because of misunderstanding on Q4 Gross Margin Weakness, Company is expected to publish FY on the 20th of May...but numbers have been adjusted now
- M&S generak merchamfise should continue to head in the good direction, food is quite isolated from a branded food price war
- Strong execution from management and potential cash return could help the stock to rebound
- Historically MKS is trading with a 20% to UK Market P/E, trading only with 5% now

* Ahold
- Since Last publication on 27th of Feb stock outperformed the SXRP by 7%, publication can justify that move but there is no clear reason on fumdamentals
- weak LFL sales growth in the US (-2.1%) and in the Netherlands (-1.0%),
- Risk of stiffer competition and margin rebasing in the Dutch market (more powerful competitors, with in particular Jumbo)
- Still no real signs of pick-up in volumes or food inflation in the US
- It looks fully valued to us – trading at a 2014e P/E ratio of 13.7x vs 12.8x for peers

* The spread is trading on bery low historical levels - we can see a quick reversal, historical lows (-3.3% / 29.86 )
MKS 410 levels appear to be a strong support, stock can trade quickly to 460/470 levles
AH : 14 levels are a strong resistance, could see stock trading back on support 200d MA on 13 levels

BUY MKS SELL AHOLD

(Le Monde) Reconciliation GE-Alstom: the government is working with other soluti

Reconciliation GE-Alstom: the government is working with other solutions

Link to Google Translation :{http://bit.ly/1ntoLlv}
Link to Original in French : {http://bit.ly/1lMV5f4}

While discussions are ongoing between General Electric and Alstom for the U.S. giant bought the French energy activities, the Government provides not want to let slip this jewel of the industry without hexagonal try an alternative solution.

Contacted Friday, April 25 in the morning, while Alstom course was suspended at the Bourse of Paris , the Minister of Economy Arnaud Montebourg said: "Alstom is the symbol of our industrial power and French ingenuity. Alstom in this case, the government expresses a concern and patriotic vigilance. This high vigilance is focused on the serious risk of loss of a center of decision, the desire and the need to strengthen our industrial base by getting French industrial relocations in France , and the number of jobs lost or created in such operations. "
The Minister added: "That is why the Government is working on alternatives and contingencies than imagined alone and without the Government having been informed by Alstom.
I met Mr. PatrickKron yesterday. With the Prime Minister will meet soon President General Electric to put the dialogue on the grounds of these concerns. "

According to sources close to the two groups, discussions for a merger could accelerate this weekend . The energy part of Alstom would be valued 10 billion euros, without take into account the cash Alstom.