(Challenges) Bonus: BNP Paribas will pamper its employees despite the fine U.S.

The CEO of the bank had promised this summer during a tour in the United States intended to raise the morale is low.

BNP Paribas will pamper its bankers, traders stars and shareholders their dividends and bonus side, despite a record fine in the United States, according to sources familiar with the matter.

The Director General Jean-Laurent Bonnafé made these promises in late July during a tour in the United States, priority of the bank intended to raise the morale is very low, according to two major bankers and other internal source .

According to these sources who requested anonymity, Jean-Laurent Bonnafé assured bankers and traders worried about their bonuses and stock options, the record fine imposed by the U.S. authorities would affect in any way.

In early July, the French bank fined 8.9 billion, equivalent to one and a half profits, for violations of the law on payments in dollars to countries subject to embargo.

457 million accrued

Contacted by AFP, BNP Paribas declined to comment on the visit of the Director General and has not explained whether the amount of the bonus would be equivalent or lower than last year.

"The business and our employees will be evaluated according to their performance during the year. This is the formula that has been used by the bank and we will follow again this year to assign variables compensation" simply replied AFP Cesaltine Gregorio, a spokeswoman for the hotel in New York.

Last year, BNP Paribas has set aside 457 million euros to spoil its best under variable compensation, according to the annual report. This amount was down 1.3% compared to 2012 (€ 463 million).

BNP Paribas also wants to pay a dividend at least equal to last year, according to the same sources. The French bank had allocated 1.50 per share for 2013, similar to 2012.

These promises came as discouragement wins U.S. employees of the bank, who resented the bad publicity generated by long months of difficult negotiations between their management and U.S. regulatory authorities.

"It seems to have made all transactions for Iran, Cuba and Sudan," said a disappointed AFP bankers.

On June 30, BNP pleaded guilty to having knowingly violated U.S. economic sanctions against those countries.

Its brokerage operations of oil and gas will no longer be paid in dollars from 1 January 2015 until 31 December 2015.

A pension fund suspends relations

To prevent the departure of talents, BNP has no choice but to play the card bonus especially to American bankers and traders, analysts said.

So far, the French institution has recorded no smashing start but bankers were approached by rival banks, according to internal sources.

Especially since the bank wants to extend to the United States in both the brokerage in corporate banking and investment priorities in its strategic plan 2016, as recalled by July 1 Mr. Bonnafé after the announcement of the fine.

These ambitions could be hindered by the disaffection of large customers, stung by the admission of guilt by the bank.

The pension fund Texas ERS, whose assets are estimated at more than $ 25 billion, just suspended its business relationship with BNP Paribas, said by email to AFP, his spokeswoman Mary Jane Wardlow.

ERS was also temporarily stopped doing business on May 21 with Credit Suisse, two days after the bank had recognized helvète helping wealthy Americans to evade taxes. The suspension was lifted on June 20

BNP Paribas expects a response from the U.S. Department of Labor in its waiver request made ​​on June 30 to continue to pursue the lucrative business of asset management. According to a source close to the case, the process is expected to last six months.

>>> NUS US : JPM cuts to Neutral, cuts PT from $100 to $50

JPMorgan Chase and Co Cuts NUS to Neutral from Overweight, price target: $50 
- price target cut to $50 from $100 
- citing the underlying business is in worse shape than anticipated. With very little visibility on the trends and some concerns about how much of "bounce back" well see in top line for 15, it is hard to justify an Overweight rating despite the weakness year to date.

--> Stock was down 19.7% yesterday after releasing numbers

RTR- Japan's GPIF to boost stock allocation to over 20 pct



The sources familiar with the fund's plans said the GPIF will likely lower its weighting for Japanese government bonds to around 40 percent from a current 60 percent target, and may also increase investments in global stocks when it announces its new allocation plan sometime in the autumn.

Prime Minister Shinzo Abe's government has been pressing the $1.24 trillion fund, the world's largest, to shift more of its portfolio into risk assets from domestic bonds, which earn razor-thin returns. The 10-year JGB currently yields less than 0.6 percent. ($1 = 102.1700 Japanese yen) (Reporting by Takaya Yamaguchi; Writing by Ritsuko Ando; Editing by Chris Gallagher)

(BFW) Kabel Deutschland 1Q Sales Rise, Customer Growth Accelerates


Kabel Deutschland 1Q Sales Rise, Customer Growth Accelerates
2014-08-07 06:13:49.953 GMT


By Sam Chambers
Aug. 7 (Bloomberg) -- Kabel Deutschland 1Q sales rise 5.8%
to EU491m, adj. Ebitda rises 4.1% to EU226m.
* Adds 83k internet subscribers vs 77k additions y/y
* Adds 70k premium TV subscribers vs 24k additions y/y
* Statement


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James Ludden at +44-20-7673-2645 or
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(BFW) Adidas Cuts 2014 Gross Margin Forecast


Adidas Cuts 2014 Gross Margin Forecast
2014-08-07 05:44:54.732 GMT


By Heather Burke
Aug. 7 (Bloomberg) -- Adidas says negative FX, weak golf
mkt hurt results; FX-neutral Adidas, Reebok sales accelerated.
* 2Q rev. up 10% on a FX neutral basis
* Western Europe up 13%
* European EM up 14%
* North America up 1%
* Greater China up 11%
* Other Asian mkts “stable”
* Latin America up 33%
* 2Q gross margin 49.2% vs 50.1%
* Sees 2014 gross margin 48.5% to 49%, had seen 49.5% to 49.8%
* Reebok brand to boost gross margin, more than offset by
lower margins at TaylorMade-adidas Golf, in Retail
segment, less favorable hedging rates, adverse FX in
emerging mkts
* NOTE: Reported 2Q sales EU3.47b, net EU144m on July 31, with
2Q sales up 10% on FX-neutral basis
* NOTE July 31: Adidas Has Record Plunge After Cutting Profit
Goal on Russia
* Call 3pm CET +44 20 3427 1907, pw 8763729
* Statement: NSN N9X8O93V2800 <GO>
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James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net

>>> What to look at today: 07/08/2014

US Market closed near flat line, two potential acquisitions were called off with 21st Century Fox (FOXA 32.33, +1.03) terminating its pursuit of Time Warner (TWX 74.24, -10.95) and Sprint (S 5.90, -1.38) withdrawing its offer for T-Mobile (TMUS 31.06, -2.85), shares of Walgreen (WAG 59.21, -9.91) plunged 14.3%, which also contributed to the early weakness. The drugstore operator said it will acquire the remaining 55.0% stake in Alliance Boots that it does not currently own and that it will not move its corporate headquarters out of the United States, S&P found its support on the 100d MA, volume were below average @ 680mil shares...VIX @ 16,30 -3,38%...Fed's Lockhart spoke with CNBC after US market close, noting it was still a bit early to pull stimulus and that 2H 2015 is appropriate timing for rate lift. Lockhart added inflation expectations are well anchored, while forecasting annual GDP to trend near 3% trajectory...In Asia, Regional indices remain largely in the red despite some modest relief in the US as investors turn increasingly more cautious on emerging markets amid continued geopolitical tensions. Shanghai Composite is down again after an impressive run the last couple of weeks. Fitch warned speculation in the property sector could reemerge as a result of lifting of sector curbs and easing of credit...Nikkei +0.30% Hang Seng -0.55% Shanghai -0.70%

Eur$ 1.3385 S&P +0.16% EuroStoxx +0.20% Dax +0.09% Ftse +0.17% SMI +0.23%

Macro
- Recesssion Means Italy Needs Faster Reform: Renzi in Messaggero
- France May Earn EU500 Million From Regional Airport Sales: Echos

Keep an eye on :
- ADEN VX : Adecco 2Q Rev. Up; ‘Solid’ Performance, Steady Growth in Europe
- BCP PL : Portugal Suspends Naked Short Selling of Banco Comercial
- BES PL : Portuguese Banks May Contribute More in BES Takeover: Reuters {http://in.reuters.com/article/2014/08/06/portugal-bes-banks-idINL6N0QC5XN20140806}
- BNR GY : Brenntag 2Q Oper. Ebitda Misses, Seen at EU700m-EU720m This Yr
- BON FP : Bonduelle Says FY Revenue Above its Target Due to Solid 4Q
- BPOST BB : Bpost Raises Profit Forecast, Cuts Mail, Parcels Volumes Outlook
- CBK GY : Commerzbank 2Q Net Income EU100m, Est. EU127m
- CORA NA : Corio 1H Direct Result EU122.6m; Disposal Plan Ahead of Schedule
- DELB BB : Delhaize 2Q Rev., Underlying Ebit Beats Ests.
- DTE GY : Deutsche Telekom 2Q Sales Miss, Adj. Ebitda Beats; Keeps Targets
- ZIL2 GY :Elringklinger 2Q Ebit Misses Est., Rev. Beats; Outlook Confirmed
- EOAN GY : KKR, CVC Among Funds Interested in EON Spain Unit: Economista
- ILD FP : Iliad Doesn’t Plan to Increase T-Mobile US Bid: Les Echos
- KBC BB : KBC Groep 2Q Net Beats Ests. as Common Equity Ratio Up to 12.9%
- KCO GY : Kloeckner 2Q Ebitda Matches Est.; Sees 2014 Ebitda EU190m-EU210m
- MONC IM : Moncler 1H Rev. Up 19%, Says 1H Results Give Confidence for Yr --> Moncler Underlying Momentum More Positive, BofAML Says After 2Q
- MSK IM : Moleskine Expects 2014 Rev EU99m-EU101m
- MUV2 GY : Munich Re 2Q Net Income EU765m, Est. EU798m
- NESN VX : Nestle 1H Organic Sales Growth Beats Ests., CHF impact on Sales -8,8%, Announces CHF8b Shr Buyback
- NOVOB DC : Novo Nordisk 2Q Net Beats Ests.; 2014 Outlook in DKK Raised
- PAL AV : Palfinger 1H Rev., Earnings Rise; Sees `Moderately' Positive 2H
- 1913 HK : Prada Rises After 1H Sales Increase 1% Y/y
- RHM GY : Rheinmetall Cuts 2014 Forecast, Cites Russia Export Permit Loss
- RRS LN : Randgold 2Q Sales Rise, Costs Fall; Maintains FY Forecast
- RSA LN : RSA Reports 1H Pretax Profit of GBP69m; Irish loss GBP64m
- SAZ GY : Stada 1H Sales In-Line With Ests.; Keeps 2014 Forecast
- SBMO NA : SBM Offshore 1H Non-IFRS Net Loss $98m vs Loss $44m Y/y
- SGL GY : SGL Carbon 2Q Sales Miss Ests.; Confirms 2014 Forecast
- S92 GY : SMA Solar 1H Sales EU341m, Ebitda Loss EU17m; Sees Better 2H
- SY1 GY : Symrise Confirms FY Outlook, Expects Solid Demand in All Regions --> Symrise 2Q Sales Growth Weaker, Profitability Amazingly High: DZ
- UBIS LN : United Biscuits mandates Centerview for dual-track process; Kellogg considering GBP 2bn bid
- UBIS LN : United Biscuits Not in Sale Talks With Kellogg, Reuters Says
- US IM : UnipolSai 1H Net Income EU332.7m vs EU143.3m Y/y
- WWASA NO : Wilh. Wilhelmsen 2Q Net Declines; Sees Slow Volume Growth Trend
- ZURN VX : Zurich Insurance 2Q Net Income $837m, Est. $947m

>>> Brokers Upgrades & Downgrades

>>> Up
*ACCOR RAISED TO NEUTRAL VS UNDERPERFORM AT CREDIT SUISSE
*CATTOLICA RAISED TO HOLD VS REDUCE AT KEPLER CHEUVREUX
*INTERTEK RAISED TO HOLD VS REDUCE AT KEPLER CHEUVREUX
*LUNDIN PETROLEUM RAISED TO BUY VS NEUTRAL AT UBS
*OSRAM LICHT AG RAISED TO OVERWEIGHT VS UNDERWEIGHT AT BARCLAYS
*SABMILLER RAISED TO HOLD VS SELL AT RENAISSANCE
*UNICREDIT RAISED TO NEUTRAL VS UNDERPERFORM AT EXANE
*XING RAISED TO BUY VS HOLD AT BERENBERG

>>> Down
*BELGACOM CUT TO UNDERPERFORM AT MORGAN STANLEY
*EASYJET CUT TO EQUALWEIGHT VS OVERWEIGHT AT BARCLAYS
*LANCASHIRE CUT TO SELL FROM HOLD AT PEEL HUNT
*METRO CUT TO HOLD VS BUY AT KEPLER CHEUVREUX
*PRADA CUT TO UNDERPERFORM AT MAINFIRST
*SECURITAS CUT TO SELL VS NEUTRAL AT UBS
*VODAFONE CUT TO MARKET PERFORM AT RAYMOND JAMES

>>> PT Changes
*INTERPUMP PT RAISED TO EU11.8 VS EU11 AT CITI; KEPT AT BUY
*TELIT RATED NEW OVERWEIGHT AT MORGAN STANLEY, PT 320P

>>> Initiation
*CARPHONE WAREHOUSE REINSTATED OVERWEIGHT AT BARCLAYS, PT 420P
*DIXONS CARPHONE RATED NEW BUY AT INVESTEC; PT 395P
*DNO ASA RATED NEW NEUTRAL AT UBS; PT NOK20.5
*DO DEUTSCHE OFFICE RATED NEW BUY AT BERENBERG; PT EU3.85
*FINCANTIERI RATED NEW NEUTRAL AT GOLDMAN, PT EU0.83
*IMCD GROUP RATED NEW BUY AT GOLDMAN, PT EU28.5
*VICTREX RATED NEW BUY AT BERENBERG; PT 1,950P

>>> Call
>> Stock
*AB INBEV REMOVED FROM UBS EUROPEAN KEY CALL LIST
*AFRICAN BARRICK GOLD REMOVED FROM UBS MOST PREFERREDS
*ARKEMA REMOVED, ABENGOA ADDED TO CITI KEY BUYS
*MOSCOW EXCHANGE ADDED TO GOLDMAN CEEMEA FOCUS LIST
*POLYMETAL REMOVED FROM UBS LEAST PREFERREDS