>>> Brokers Upgrades & Downgrades

>>> Up
*ALSTOM RAISED TO BUY VS NEUTRAL AT UBS
*BURBERRY RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*EASYJET RAISED TO OUTPERFORM VS SECTOR PERFORM AT RBC CAPITAL
*FERRAGAMO RAISED TO OUTPERFORM VS NEUTRAL AT EXANE
*HIKMA RAISED TO BUY VS NEUTRAL AT GOLDMAN
*SAINT-GOBAIN RAISED TO EQUALWEIGHT AT MORGAN STANLEY

>>> Down
*AFK SISTEMA CUT TO NEUTRAL VS BUY AT UBS
*BARRATT DEVELOPMENTS CUT TO HOLD VS BUY AT LIBERUM
*DAIMLER CUT TO NEUTRAL AT CREDIT SUISSE
*HEIDELBERGCEMENT CUT TO UNDERWEIGHT AT MORGAN STANLEY
*TECHNIP CUT TO NEUTRAL VS BUY AT UBS
*TGS NOPEC CUT TO SELL VS NEUTRAL AT UBS
*WOOLWORTHS HOLDINGS CUT TO NEUTRAL VS OUTPERFORM: CREDIT SUISSE

>>> PT Change
*DUFRY PT RAISED TO CHF190 VS CHF165 AT JEFFERIES, KEEPS BUY

>>> Initiation
*ADVANCED COMPUTER SOFTWARE RATED NEW BUY AT LIBERUM, PT 141P
*CITYCON RATED NEW OVERWEIGHT AT JPMORGAN; PT EU3.3
*CONTINENTAL RATED NEW BUY AT BERENBERG; PT EU200
*LEG IMMOBILIEN RATED NEW BUY AT SOCGEN; PT EU60
*RECKITT BENCKISER RATED NEW ADD AT NUMIS
*SUBSEA 7 RAISED TO BUY VS NEUTRAL AT UBS

>>> Call
>> Stock
*EXPERIAN EXITS UBS MOST PREFERRED EUROPE SUPPORT SERVICES SHRS
*FERREXPO EXITS MOST PREFERRED METALS & MINING SHRS AT UBS
*HAYS, BERENDSEN ENTER UBS MOST PREFERRED SUPPORT SERVICES SHRS
*SISTEMA REMOVED FROM 3Q14 TOP 10 EEMEA IDEAS AT BOFAML

(Exane) M&A Target List Update - Bouygues Inv. Case

* I want a new drug
We believe there is at least a 50% chance that Pfizer returns with a sweetened offer for
AstraZeneca in November, when the take-over panel’s restrictions expire. The manner in which the
two companies approached the possible take-over last time was less than optimal for their
respective shareholders, who were left frustrated by the failure of the parties to engage in
meaningful discussions. However, AZN’s attractiveness for Pfizer is unchanged (and possibly
enhanced by recent pipeline data). We think AZN is unlikely to invite Pfizer to talk before
November and investors will have to wait until then for Pfizer to return with a proposal that gets the
AZN board to engage (around GBP56-58?). But if AZN CEO Soriot's estimates of the sales
potential of the AZN pipeline are to be believed, a higher price should not be an insurmountable
barrier. Meanwhile AZN offers a 3.9% net dividend yield, which should limit downside. November is
only 4 months away, not that long to wait given the potential upside of around 30%.

* Yielding to temptation
The temptation is to take profits in Shire here – with Abbvie’s offer worth just over GBP53 and the
stock trading at GBP49 there is around 8% upside left. Given the noises coming from the US
around a possible interdiction of tax redomiciliation we have decided to take profits. Since Shire’s
entry in 2011 we have made a 195% return on this position.

* Telecoms switch
We are removing Colt from the list and replacing it with Bouygues after the latter’s recent fall. We
have held Colt for three and a half years now. While the valuation remains extremely low the poor
operating characteristics of the business have cost us a 30% underperformance over that period.
The recent earnings disappointment and lack of results from the restructuring make us nervous of
continuing to hold the stock simply on the M&A story. The Bouygues case is well known but the
value creation of synergies and market repair have been partially priced out recently following a
number of non-committal statements from all the players potentially involved. It looks like a good
entry point into a deal that will surely be done one day.

Amazon Nudged to Weigh Content Expansion Amid Fox Bid: Real M&A

+------------------------------------------------------------------------------+

Amazon Nudged to Weigh Content Expansion Amid Fox Bid: Real M&A 2014-07-17 23:37:16.266 GMT

(For a Real M&A column news alert: SALT REALMNA <GO>.)

By Brooke Sutherland July 18 (Bloomberg) -- After Rupert Murdoch’s attempt to grab Time Warner Inc., online giants Amazon.com Inc. and Google Inc. may decide to accelerate their expansion into content. The bid from Twenty-First Century Fox Inc. would create the world’s biggest media company and bring HBO’s “Game of Thrones” and “The Lego Movie” into Murdoch’s fold. Amazon has started creating original TV shows, and Google’s YouTube has funded filmmakers to fill new channels, though neither is a formidable competitor to Netflix Inc. or Hulu LLC. A takeout of Time Warner could drive Google and Amazon to get more serious about expanding, said CRT Capital Group LLC. The Internet companies may prefer to sign licensing deals or build more content on their own, said JMP Group Inc. If they wanted to be bolder, Google or Amazon could buy their way to more programming with a purchase of “The Hunger Games” maker Lions Gate Entertainment Corp., or Amazon could even buy Electronic Arts Inc., CRT said. French video-game maker Ubisoft Entertainment would be easier to digest, said Bank of Montreal. Google could even go as far as to make a bid for Time Warner, Wunderlich Securities Inc. said. Should Fox and Time Warner combine, “a lot of chips are in one hat at that point,” Neil Doshi, an analyst at CRT, said in a phone interview. Amazon and Google would “have to get pretty aggressive in terms of how they think about content, what they want to do.” Representatives for Mountain View, California-based Google and Seattle-based Amazon didn’t respond to requests for comment.

Offer Confirmation

Time Warner, the owner of HBO and TNT, confirmed this week that it received a more than $75 billion offer from Fox. While the New York-based company rejected the bid, Murdoch is willing to pay even more, people with knowledge of the matter said, a sign the billionaire is undeterred by the rebuff. The confirmation comes after Time Warner Chief Executive Officer Jeff Bewkes was asked last week whether Google or Fox would be interested in a purchase. If Time Warner is in play, Google may be inclined to weigh an offer, Wunderlich said July 16. The potential acquisition sparked a rally in media stocks representing about $90 billion of shareholder value as investors bet it may presage more consolidation. Content providers could combine to build scale and strengthen their power to negotiate with distributors, which are striking deals of their own. It could also mean Amazon and Google may want to double down on content.

Working Plans

Proprietary shows and movies are appealing to the Internet companies because it gives consumers one more reason to engage with their platforms. Amazon has already been developing programming and financing pilot episodes for children’s shows and comedies to air through the company’s Instant Video service. A few years ago, Google announced it would spend about $100 million to support video programming on YouTube. The company also said last year that the site would begin selling subscriptions to film and TV services over the Internet to compete with Netflix. Amazon and Google “are trying to build this consumer ecosystem to be the one-stop shop for media consumption,” Kerry Rice, an analyst at Needham & Co., said in a phone interview.

Exclusive Producers

A takeover of a company such as $4.4 billion Lions Gate by either Amazon or Google could make sense, said Doshi of CRT. Alibaba Group Holding Ltd., China’s biggest e-commerce company, is teaming up with Lions Gate to stream Hollywood movies and TV shows through a new set-top box. “A lot of these movie studios want to get deeper entrenched in online,” Doshi said. “And if Amazon or Netflix or Google has deep pockets and is willing to pay a lot of money to do deals, I don’t know if it would be too far off for one of these companies to potentially acquire a movie studio and be able to make movies exclusively for their subscribers.” For Google, a deal would bolster the YouTube brand and allow the company to charge more for advertising on a high- quality film, the analyst said. Yesterday, the company reported sales that exceeded analyst estimates. Amazon could consider buying a video-game maker, maybe even a company as large as Electronic Arts, which is valued at $11.6 billion, to drive more people to gaming on its Fire TV system, according to Doshi. Ubisoft, with a market value of about $2 billion, may be a more logical first step into video-game content for Amazon should it pursue that path, said Edward Williams of BMO.

‘Left Field’

“Amazon could step in and buy a console game company and then look to help that company take its content onto mobile through the Kindle ecosystem,” the analyst said in a phone interview from New York. “Buying an Ubisoft, which is a fraction of the size of EA, financially is just an easier one to swallow. It’s definitely a left-field move, but it’d be kind of an intriguing one.” Representatives for Redwood City, California-based EA and Ubisoft said their companies don’t comment on speculation. A representative for Lions Gate, based in Santa Monica, California, didn’t respond to requests for comment.

Better Yet

Getting bigger in content doesn’t necessarily mean acquisitions. Buying a major media company is a risky and expensive endeavor, and Amazon and Google may prefer to just license shows and movies or negotiate a joint venture arrangement, said James McQuivey, an analyst at Cambridge, Massachusetts-based Forrester Research Inc. “Frankly, owning the content creates all kinds of hassles,” he said in a phone interview. “I think most of these companies would want to think twice.” Buying an established content producer could undermine the neutrality of the companies’ platforms, said Ron Josey of JMP Securities, a unit of JMP Group. Amazon and Google may also prefer to develop their own shows and movies. Such a move would mimic Netflix, whose “House of Cards” and “Orange is the New Black” have grown in popularity. “Both of these companies are sufficiently large, they can sort of do whatever they want,” said Josey, a New York-based analyst. Google and Amazon probably “feel they can at least give it a good try on their own before they have to go out and buy someone to have that type of offering. History suggests that they believe they can build things just as well as anybody.”

For Related News and Information: Fox’s Play for Content Throne Buoys Discovery, Scripps: Real M&A NSN N8V09B6JTSF2 <GO> Murdoch Said Open to Offer More Than $75 Billion for Time Warner NSN N8TQH76S972H <GO> Liberty Global $824 Million ITV Stake Shows Value of Content NSN N8V7ET6KLVRD <GO> Google deal news: GOOGL US <Equity> TCNI MNA <GO> Amazon deal news: AMZN US <Equity> TCNI MNA <GO> Bloomberg Industries, diversified entertainment: BI DVEN <GO> Top deal news: DTOP <GO> Real M&A columns: NI REALMNA <GO>

To contact the reporter on this story: Brooke Sutherland in New York at +1-212-617-0448 or bsutherland7@bloomberg.net To contact the editors responsible for this story: Beth Williams at +1-212-617-2307 or bewilliams@bloomberg.net Whitney Kisling

>>> Asian Update

Asian Market Update: China property price growth slows further

***Economic Data*** - (CN) CHINA JUN NEW HOME PRICES M/M: PRICES RISE IN 8 OF 70 CITIES V 15 PRIOR; Y/Y: PRICES RISE IN 69 OF 70 CITIES V 69 PRIOR - NPD: June total US video game sales $736M, +24% y/y

***Index Snapshot (as of 02:30 GMT)*** - Nikkei225 -1.3%, S&P/ASX +0.1%, Kospi -0.4%, Shanghai Composite +0.3%, Hang Seng -0.5%, Sept S&P500 -0.1% at 1,951

***Commodities/Fixed Income/Currencies*** - Aug gold -0.1% at $1,316, Aug crude oil +0.6% at $103.83/brl, Sept Copper flat at $3.22/lb - (AU) Australia MoF (AOFM) sells A$1.5B in 2.75% bonds due 2019; Avg yield: 2.8736%; Bid-to-cover: 2.59x - (JP) Japan's MoF sells ¥2.46T in 0.1% (0.2% prior) 5-yr notes; Avg yield: 0.147% v 0.185% prior; Bid to cover: 4.14x v 4.62x prior - (US) Weekly Fed Balance Sheet Total Assets Week ending July 16th: $4.40T v $4.38T prior; Reserve Bank Credit: $4.36T v $4.34T prior; M1 y/y change: 11.1% v 10.9% w/w; M2 y/y change: 6.5% v 6.4% w/w - USD/CNY: (CN) PBoC sets yuan mid point at 6.1568 v 6.1564 prior setting (weakest Yuan setting since Jul 8th; 6th consecutive weaker setting)

***Market Focal Points/Key Themes*** - China property sector is in focus with the release of June property price data. Across all-70 cities prices fell m/m for the 2nd consecutive month, down -0.5% v -0.2% prior, while y/y price growth slowed to 4.2% from 5.4%. Overall, new home prices rose in just 8 cities vs 15 in the prior month and fell in 52 cities vs 35 prior. Existing home sales price declines were pronounced even in the top-tier cities, with 1.3% m/m declines in Beijing and -0.7% in Shanghai. Top property names are trading higher however on indication of more relaxed sentiment toward easing property curbs from a Chinese govt official. Newly appointed Land and Resources (MLR) Minister Chen Zhenggao said the local govt can introduce policies on property market according to their situation. Those comments come in the context of the statement from Ministry of Housing and Urban-Rural Development official overnight who said the govt supports reasonable housing needs, but would curb speculative demand.

- Sentiment started out cautious overall across the Asian markets, tracking late-session selloff on Wall Street. There is little certainty over the details in the downing of Malaysian Airlines aircraft in east Ukraine, as Western leaders express their condemnation for the presumed terrorist act and call for international investigations on the ground. Rebel leaders said they will hand over the aircraft blackbox to Moscow and that they will agree to a ceasefire to facilitate the recovery operation. Separatists are also pleading innocence, stating they do not have the required technology to down an aircraft flying at 10km altitude, while Ukraine Pres Poroshenko said he was certain his side did not fire on any aerial targets. Russia Pres Putin said the entire conflict is to blame for the tragedy, but that ultimately the fault is with Kiev for conducting military action in the region. Malaysian Airlines shares were down 10%, and most international carriers have now formally diverted their routes away from Ukraine. Geopolitical tensions were also emanating out of the Middle East, where Israeli govt confirmed it has started ground operations in Gaza.

- BOJ released the minutes of its June policy meeting, reiterating most members agree on continued easing until 2% inflation is stable. BOJ also agreed to monitor risks and adjust policy if needed, while some members saw the easing effects intensifying. Nikkei225 is the underperformer among the regional indices, tracking firmer JPY receiving the safe-haven bid during the US session when USD/JPY fell below 101.10 - 1-week low.

- Among notable US names reporting results after market close, GOOG is up modestly despite missing on earnings as paid clicks rose 25% y/y. Seagate and IBM are down about 2% each in extended session, and AMD is down a pronounced 19% on contracting gross margins and soft revenue guidance for Q3.

***Equities*** US markets: - GTIV: Rejects Kindred offer; receives alternative proposal from another party at $17.25/shr (8% higher than $16/shr offer from KND); does not disclose the name of the alternative party; +10.9% afterhours - SWKS: Reports Q3 $0.83 v $0.80e, R$587.0M v $570Me; +8.3% afterhours - CE: Reports Q2 $1.47 v $1.23e, R$1.77B v $1.72Be; Raises FY14 EPS growth to 15-17% (implies $5.18-5.27 v $5.09e) from 12-14%; +2.4% afterhours - MATW: Reports Q2 $0.86 v $0.80e, R$280.0M v $264Me; +1.1% afterhours - GOOG: Reports Q2 $6.08 v $6.23e, R$12.7B v $12.4Be; +1.0% afterhours - PETM: Said to be interviewing investment banks, seeking advice amid investors' demand for sale - financial press; +0.9% afterhours

- COF: Reports Q1 $2.04 v $1.79e, R$5.5B v $5.43Be; -0.3% afterhours (after initially rising over 0.6%) - STX: Reports Q4 $1.10 (adj) v $1.10e, R$3.30B v $3.32Be; Guides Q1 Rev at least $3.55B v $3.52Be; Q1 product GM to be relatively flat - conf call; -1.7% afterhours - IBM: Reports Q2 $4.32 v $4.31e, R$24.4B v $24.2Be; -2.0% afterhours - AMD: Reports Q2 $0.02 v $0.03e, R$1.44B v $1.44Be; Guides Q3 Rev +2%, +/- 3% q/q implies $1.47B v $1.58Be; -19.0% afterhours

Notable movers by sector: - Consumer Discretionary: Unicharm 8113.JP +1.8% (press speculation on Q1 results); Qingdao Doublestar 000599.CN -1.7% (prelim H1 results) - Financials: Haitong Securities 6837.HK -0.3% (H1 prelim results); China Vanke 000002.CN +3.8%, Poly Real Estate 600048.CN +6.6% (China Jun housing price data) - Materials: OZ Minerals OZL.AU -0.7% (Q2 production results); BBMG Corp 2009.HK -1.4% (H1 guidance) - Energy: China Shenhua Energy 1088.HK -1.4% (Jun coal output) - Technology: Sharp Corp 6753.JP -3.1% (press speculation on Q1 results); Forgame 484.HK -10.5% (H1 guidance) - Utilities: Yaskawa Electric 6506.JP +2.9% (Q1 results)

>>> US After Hours

After Hours Summary: SWKS +8.9%, WAL +2.8%, GOOG +1.2%, RP -26.5%, AMD -17.9%, IBM -1.8% following earnings/guidance

After Hours Gainers: Companies trading higher in after hours in reaction to earnings: SWKS +8.9%, WAL +2.8%, CE +2.1%, GOOG +1.2%, MATW +1.1%, GRT +0.7%, COF +0.3%, SYK +0.3%

Companies trading higher in after hours in reaction to news: PRAN +2.0% (continued strength following earlier positive update on clinical development program for Alzheimer's disease), SWC +1.2% (reported production of palladium and platinum from the Company's Montana mine operations totaled 126,400 ounces in Q2 compared with total mine production of 131,500 in the same period of 2013), ABG +1.0% (increased total share repurchase authorization to $100 mln), LNG +0.9% (co and Electricite de France sign 20-year LNG sale and purchase agreement), SYY +0.5% (settled with the State of California all claims related to its past use of drop sites in the state for $19.4 mln)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: RP -26.5%, AMD -17.9%, KTCC -5.6%, ZHNE -3.3%, ROG -3%, BGS -2.3%, IBM -1.8%, CPHD -1.5%, SLB -1.2%, STX -1.2%, ATHN -0.6%

Companies trading lower in after hours in reaction to news: TGP -3.9% (announced public offering of 2.8 mln common units, which represent limited partner interests)

Barron's : Why Dow Chemical Stock Will Continue to Rally

Why Dow Chemical Stock Will Continue to Rally
Goldman says the staid chemical company, which has crushed the index, remains undervalued.

Over the past year, Dow Chemical has rallied some 50%, almost triple the total return of the Standard & Poor's 500 index. The remarkable quality of Dow's (ticker: DOW ) rally is not the magnitude of its advance but rather its stealth. With investors caught up in the latest hot-stock craze, the quiet multinational chemical company based in Midland, Mich., doesn't generate many headlines.

Dow Chemical has earned the respect of many investors, and now this dependable stock is attracting bullish attention from Goldman Sachs. The bank's derivatives strategists are advising clients to buy Dow's August $52.50 calls, which traded at 79 cents when the stock was at $51.54.

"We believe calls underprice upside potential on earnings," strategists Katherine Fogertey and John Marshall advised clients in a Wednesday trading note.

Their view reflects stock and options fundamentals. The bank rates the stock a Buy and thinks it will rally 26% over the next year as Dow has said it can double Ebitda—earnings before interest, taxes, depreciation and amortization—over the medium term.

"With cash generation expected to be strong in the near and mid-term, the company's financial flexibility will help maintain focus on organic growth. At the same time, management expects to return $4 billion to shareholders via buybacks, and $1.8 billion via dividends," Fogertey and Marshall advised clients.

In other words, Goldman Sachs thinks other analysts are too conservative with their earnings estimates. Dow has benefited both from good management—a CEO-led turnaround—and a rebound in the global economy that has driven demand for the company's products.

Goldman thinks Dow will beat the consensus earnings estimate by 5% over the next three quarters. Such fundamental strength would seemingly be accompanied by expensively priced options. Yet, the options are priced as if Dow is nothing more than a boring chemical company.

In fact, staid stocks are looking better and better these days. This reflects a sharper focus on bottom-up stock-picking as some strategists decide that top-down investing may have run its course.

Options that expire in one month are historically inexpensive, implying the stock will move 2.6%, up or down, in reaction to earnings. The stock's eight-quarter median move on earnings, however, is 3.7%, up or down. Meanwhile, the implied volatility of Dow's one-month bearish put options is higher than calls, indicating expectations the stock may decline on earnings.

"We estimate," Fogertey and Marshall told clients, "that buyers of DOW August $52.50 calls would profit if shares gain more than 1.6% between now and the day after earnings, assuming implied volatility of August options declines 17% (in-line with prior quarters)."

If the stock is at, say, $55 by expiration, the 79-cent call is worth $2.50, a meaningful return in a short time. The risk is that Goldman is wrong, the company reports lousy earnings, the stock sinks and then all the money spent on the call would be lost. Of course, there is risk in everything, but it is not everyday that the risk is limited to 79 cents.

NYT : Malaysia Jet Brought Down by Missile, U.S. Officials Say

Malaysia Jet Brought Down by Missile, U.S. Officials Say

MOSCOW — A Malaysia Airlines Boeing 777 with 295 people aboard was shot down on Thursday by a surface-to-air missile, U.S. officials have confirmed. The airliner was traveling at about 30,000 feet, according to the tracking information from a military spy satellite. The satellite, however, was unable to detect where exactly the missile was fired.

Military and intelligence analysts are using mathematical formulas, high-speed computers and other sensors to try to pin down the missile’s point of origin. Other analysts will work with Ukrainian authorities to recover and analyze pieces of the missile and the aircraft to help determine what kind of missile was fired, the officials said.

The plane crashed and burned on Thursday in an eastern Ukraine wheat field near the Russian border, in an area roiled by fighting between pro-Russian separatists and Ukrainian forces.

The Soviet leader Nikita Khrushchev denouncing the United States in a news conference in 1960. The wreckage of a U-2 spy plane shot down in Soviet territory was put on display for the press.HistorySource: Malaysian Airlines Flight: History's Lessons in Crisis ManagementJULY 17, 2014
Safety Statistics: The String of ‘Safest Airline Years’ Is OverJULY 17, 2014
Ukrainian officials called the crash an act of terrorism. Vice President Joseph R. Biden Jr. of the United States, speaking in Detroit, said the plane “apparently has been shot down. Shot down, not an accident. Blown out of the sky.”

“This is truly a grave situation,” Mr. Biden said. “Nearly 300 souls have been lost. The families need consolation and our prayers, and many questions need to be answered. And we’ll get those answers, and we’ll take action accordingly.” He added, “It’s important we get to the bottom of this sooner than later because of the possible repercussions that can flow beyond from this, beyond the tragic loss of life.”

Ukraine’s president, Petro O. Poroshenko, said in a statement that he was calling for an immediate investigation of the crash of the plane, which was en route to Kuala Lumpur, Malaysia, from Amsterdam. There were no reported survivors among the 280 passengers and 15 crew members.

Mr. Poroshenko said he had called the Dutch prime minister, Mark Rutte, to express his condolences and to invite Dutch experts to assist in the investigation. “I would like to note that we are calling this not an incident, not a catastrophe, but a terrorist act,” Mr. Poroshenko said.

Malaysia’s prime minister, Najib Razak, called for an investigation at the crash site and the unfettered cooperation of local authorities. “Malaysia is unable to verify the cause of this tragedy,” he said.

“No stone will be left unturned,” he added. “If it transpires that the plane was, indeed, shot down, we insist that the perpetrators must be brought to justice.”

President Obama spoke with Mr. Poroshenko and Russia’s president, Vladimir V. Putin, from aboard Air Force One.

Reporters arriving at the scene near the town of Grabovo described dozens of lifeless bodies strewn about, mostly intact, in a field dotted with purple flowers, with remnants of the plane scattered across a road lined with fire engines and emergency vehicles. “It fell down in pieces,” said one rescue worker as tents were set up to gather the dead.

One passenger in a black sweater lay on her back, with blood streaming down her face and her left arm raised. The carcass of the plane was still smoldering, and rescue workers moved through the dark field with flashlights. Dogs barked in the distance, and the air was filled with a bitter smell.

A regional airline official said the plane had been flying at about 33,000 feet when radar lost track of it.

For months, eastern Ukraine has been the scene of a violent pro-Russian separatist uprising in which a number of military aircraft have been downed. But this would be the first commercial airline disaster to result from the hostilities.

Despite the turmoil in eastern Ukraine, the commercial airspace over that part of the country is heavily trafficked and has remained open. Aeroflot, Russia’s national carrier, announced that it had suspended all flights to Ukraine for at least three days.

Malaysia Airlines, still reeling from the mysterious loss of another Boeing 777 flight in March, said it had lost contact with Thursday’s flight, MH17, over Ukraine but offered no further details immediately. Mr. Razak said initially in a Twitter post that he was “shocked by reports that an MH plane crashed. We are launching an immediate investigation.”

President Obama, who one day earlier had announced strengthened sanctions against Russia over its support for the eastern Ukraine separatists, spoke by telephone with Mr. Putin, who raised the issue of the reports of the downed plane, White House officials said. Josh Earnest, the White House press secretary, said Mr. Obama had been briefed about the plane crash.

Later Mr. Obama said the United States government was working to determine whether any Americans had been aboard the flight. Russia’s Interfax news agency said there had been no Russians aboard.

There was no immediate word from the Kremlin about the substance of the Obama-Putin telephone call. The Kremlin put out a short statement saying that Mr. Putin had a previously scheduled telephone conversation with Mr. Obama.

“The parties had a detailed discussion about the crisis in Ukraine,” the statement said. Mr. Putin repeated the need for an immediate cease-fire and objected to what he said was Ukrainian army fire striking inside Russia.

Russian news agencies said Mr. Putin also spoke by telephone to the president of Malaysia and offered his condolences.

Mr. Rutte, the Dutch prime minister, said in a statement said he was “deeply shocked” by the crash.

Continue reading the main story
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“A lot remains unclear about the reason, circumstances and those on board,” he said. “I have just called with the Ukrainian president.”

The Dutch state news agency quoted tour operator WTC.nl as saying that around 20 to 30 Dutch and Belgian citizens had been on board.

Andrei Purgin, deputy prime minister of the Donetsk People’s Republic, the insurgent group in eastern Ukraine, denied in a telephone interview that the rebels had anything to do with the loss of the passenger jet. He said that the rebels had shot down Ukrainian planes before but that their antiaircraft weapons could reach only to around 4,000 meters, far below the cruising level of passenger jets.

“We don’t have the technical ability to hit a plane at that height,” he said.

He said that the plane had apparently come down in an area of Ukrainian military operations and that it was not out of the question that the Ukrainians themselves shot it down.

“Remember the Black Sea plane disaster,” he said, referring to the 2001 crash of a Siberian Airlines passenger jet bound for Novosibirsk from Tel Aviv that the Ukrainians shot down by accident during a military training exercise.

Anton Geraschenko, an adviser at Ukraine’s Interior Ministry, said on his Facebook page that the Malaysia Airlines plane had been brought down by a Russian-made Buk, or Beech, antiaircraft system. Russian missile systems are named for trees.

A reference book published by Rosoboronexport, the Russian state weapons export monopoly, describes the Buk antiaircraft missile system as designed to target both low- and high-flying aircraft, to a maximum height of 72,000 feet.

Mr. Geraschenko wrote that earlier Thursday people in eastern Ukraine supporting the central government had reported seeing a Buk system moved from the town of Torez toward the town of Snezhnoye.

A commander of a rebel unit in Donetsk, said, “We could have shot down three planes over Donetsk yesterday, but we didn’t because they could have been civilians.” He said the rebel forces did not have the Buk system.

In comments broadcast on Ukrainian television, Vitali Klitschko, the mayor of Kiev and former heavyweight boxing champion, said the crash illustrated the risks to peace in Europe of the fighting in eastern Ukraine. “This is not just a local conflict in Donetsk and Luhansk but a full-scale war in the center of Europe,” he said. “I’m certain the international community this time will pay attention and understand.”

>>> IBM: Notes from conference call

IBM: Notes from conference call 

- IBM mgmt notes modest sequential improvement in growth markets.
- Operating margin improved modestly while gross profit is flat; saw margin improvement in global financing, offset by declines in global business and systemes & tech.
- Notes gross margin +50 bps, pre-tax margin +70 bps, net income margin +50 bps.
- Continue to make investments in mobility, cloud.
- Continue to expect to deliver at least $20.00 of Operating EPS in 2015.
- When asked about shortfall in software relative to prior expectations, mgmt says view 90 days ago was for acceleration, and still believes they'll see software back to mid-single digit growth in 2H.
- When asked about services signings, mgmt expects improvement and says they're getting a better yield, and expects additional Q3 signings growth.
- When asked about global demand expectations for 2H; mgmt would expect Europe to see sequential improvement going forward, but it is a challenged environment...
- Would expect Japan to see improvement, saying team in Japan does quite well on top of macro; expects growth markets to see sequential improvement.
- In 2H, mgmt sees software rev growth accelerating to mid-single digit; sees STG profit stabilization.

The call has now concluded; IBM is trading -1.2% in after-hours at 190.15