>>> Telecom Italia chairman dismisses claims that Italian govt plans to ban comp

Telecom Italia chairman dismisses claims that Italian govt plans to ban company from selling Tim Brasil

Giuseppe Recchi, the chairman of Telecom Italia (TI), has dismissed newswire claims that the Italian government plans to extend its special 'golden powers' to ban TI from selling Brazilian mobile phone unit Tim Brasil. An item in Italian language daily Il Sole 24 Ore cited Recchi as saying he did not believe the government had such plans, and also described the proposal as surreal.

The item said that the report was carried on Bloomberg.

The Bloomberg report carried yesterday 4 July cited three people with knowledge of the dossier for its claims.

The report noted that the Italian government passed the "golden power" decree in June. The report said that it gives the government the right to turn down mergers and acquisitions in companies considered strategic to the national interest.

The report cited the sources as saying that the government is showing its backing to TI CEO Marco Patuano who wishes to retain Tim Brasil while Spanish telco Telefonica, TI's largest shareholder, wishes to break up or sell the unit

Italy is discussing a measure to give the government power to block an eventual sale or breakup of Telecom Italia SpA (TIT)’s Brazilian unit, according to three people with knowledge of the matter.


Source Il Sole 24 Ore, Newswire Round-up

>>> AbbVie head of research to visit UK next week to push case for Shire takeove

AbbVie head of research to visit UK next week to push case for Shire takeover bid

AbbVie’s head of research Jim Sullivan will visit the UK next week to present the case for the listed Chicago, Illinois-based pharmaceuticals company’s takeover bid for listed Anglo-Irish rival Shire, The Daily Telegraph reported. The newspaper did not cite a source for the claim.

Shire has already rebuffed three bid approaches by AbbVie, the item noted.

Sullivan will try to dispel the idea that AbbVie relies too heavily on its Humira rheumatoid arthritis treatment, the item said, noting that Humira accounts for more than 50% of AbbVie’s USD 18.8bn (EUR 13.83bn) revenue for 2013. Humira’s patent protection is due to expire by 2017, according to the report.

Sullivan will probably highlight several AbbVie drugs in the latter stages of research, including treatments for Parkinson’s disease, multiple sclerosis and cancer drugs, the item said.

The report noted that AbbVie chief executive Rick Gonzalez has argued that although the company has no need to buy Shire, doing so would be of mutual benefit.

Sullivan will also probably emphasize overlaps in research between the two companies, the article added.

Shire’s market capitalisation stood at GBP 27.31bn at the close of trading in London yesterday, 4 July.


Source Daily Telegraph

(ZH) ISIS Head Makes First Video Appearance

ISIS Head Makes First Video Appearance
Tyler Durden's pictureSubmitted by Tyler Durden on 07/05/2014 13:43 -0400

A few days ago we reported that the blitz surge of the "cool", social network-friendly faction of Al-Qaeda known as ISIS, which over the past week went so far as to declare the formation of its own sovereign state, the Islamic State on the territory of Iraq and Syria, has so irked not only the conventional enemies of extremist fundamentalist Islam but also none other than al-Qaeda itself, which as we explained before may be forced to go to war against ISIS in order to preserve its waning relevance, status and credibility.

At the center of this rapid and dramatic ascent by a group virtually nobody had heard of as recently as a month ago is a man called Aby Bakr al-Baghdadi, who unlike the leaders of al-Qaeda, has kept an extremely low profile despite his recent appointment as "caliph" by the jihadists.

Until now.

As BBC reports, Abu Bakr al-Baghdadi, the leader of Islamist militant group Isis, has called on Muslims to obey him, in his first video sermon. The video appears to have been filmed on Friday during a sermon at the al-Nouri Mosque in Mosul, northern Iraq. It surfaced on Saturday amid reports that he had been killed or wounded in an Iraqi air raid.

The release is notable because the reclusive militant leader has never appeared on video before, although there are photographs of him.

From BBC:

In the sermon, at Mosul's most famous landmark, Baghdadi praised the establishment of the "Islamic state", which was declared by Isis last Sunday.
"Appointing a leader is an obligation on Muslims, and one that has been neglected for decades," he said.
He also said that he did not seek out the position of being the caliph, or leader, calling it a "burden". "I am your leader, though I am not the best of you, so if you see that I am right, support me, and if you see that I am wrong, advise me," he told worshippers.
In other words, his first video was merely an ideological and emotional appeal to Muslims everywhere to side with him. It remains to be seen if Baghdadi will transform into just another typical Muslim blaming the sorry economic state of his country on Bush, something al Qaeda and others have done before him.
.
For those curious to see Baghdadi's complete video appearance, it is shown below in its entirety

RTR : ECB's Coeure: rates to stay low

ECB's Coeure: rates to stay low, Europe needs more investment


AIX-EN-PROVENCE France (Reuters) - The European Central Bank will keep interest rates very low for a long period of time to ensure monetary stability but euro zone governments must do their part to boost growth and cut debt, ECB policymaker Benoit Coeure said.

The euro zone has a major investment deficit, said Coeure, a member of the ECB's executive board, adding that governments must also "invest in Europe" by cooperating more closely - another condition for stability.

Saying the current economic situation of high debt, high unemployment and weak growth was very worrying, Coeure told an economic conference in southern France on Sunday: "The only way out is by investing."

But this should not be done by "piling more debt on old debt", he said, urging euro zone states to ensure flexibility to implement the bloc's stability pact is based on reforms that have been proven or carried out, not just on pledges.

"The ECB is taking care of monetary stability. We've said clearly that interest rates will remain very low, very close to zero, for a very long time, whatever the developments in the rest of the world," Coeure said.

"One should expect a divergence of monetary conditions between the euro zone and the United States and Britain - where interest rates will at some point be lifted."

(Reporting by Ingrid Melander; Editing by Catherine Evans)

Abu Bakr al-Baghdadi ridiculed for flashy wristwatch

Abu Bakr al-Baghdadi ridiculed for flashy wristwatch

The Islamic State leader prompts confusion among his followers after appearing in his first public address wearing a wristwatch that resembles an expensive Omega or Rolex

The emergence of the highly-secretive Abu Bakr al-Baghdadi from the shadow of Iraq’s sectarian crisis put a face to the threat of a global Islamic caliphate.

The Islamic State leader spoke publicly for the first time at Mosul’s Great Mosque of Friday, an intervention in which he called on the world’s Muslims to “obey” him as “the leader who presides over you”.

But the self-anointed ‘Caliph Ibrahim’ also brought a touch of branding into the bloody conflict, with many who have seen the 20-minute sermon commenting on his bulky and expensive wristwatch.

Appearing in black robes and a turban in an attempt to evoke memories of the last Caliphs to rule from Baghdad, the jihadist broke with the tradition to sport an ill-fitting chrome watch with a dark face.



His choice of accessory, which is believed to be either a Rolex, Sekonda or £3,500 Omega seamaster, has been highlighted as jarring with the content of his controversial speech.

He said that under the Islamic State's direction the Muslim world would be returned to “dignity, might, rights and leadership”.

“I am the wali (leader) who presides over you, though I am not the best of you, so if you see that I am right, assist me," he added.

“If you see that I am wrong, advise me and put me on the right track, and obey me as long as I obey God in you.”

Video footage of Baghdadi's appearance, the veracity of which is disputed by the Iraqi government, was posted on Youtube and prompted an outpouring of confused comments on social media.

IMF Sees U.S. Growth Accelerating, Europe Growth ‘Inadequate’

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BN 07/06 06:19 *LAGARDE SAYS HIGH PUBLIC DEBT LOADS, UNEMPLOYMENT ARE RISKS BN 07/06 06:19 *IMF MANAGING DIRECTOR LAGARDE SPEAKS IN AIX-EN-PROVENCE FRANCE BN 07/06 06:18 *IMF SAYS FED TAPERING IS SECOND RISK BN 07/06 06:18 *LAGARDE WELCOMES ECB EASING BN 07/06 06:17 *LAGARDE SAYS LOW INFLATION IN EURO ZONE IS A THREAT BN 07/06 06:17 *LAGARDE SEES 3 MAJOR RISKS TO GLOBAL GROWTH BN 07/06 06:17 *IMF SEES ASIAN EMERGING MARKETS AVOIDING HARD LANDING BN 07/06 06:16 *IMF SEES U.S. GROWTH ACCELERATING, LAGARDE SAYS BN 07/06 06:15 *LAGARDE SAYS NEXT IMF FORECASTS WILL VARY `SLIGHTLY' FROM APRIL BN 07/06 06:14 *LAGARDE SAYS PUBLIC DEBT RATIOS MUST NOT INCREASE BN 07/06 06:13 *LAGARDE CALLS FOR JUDICIOUS PUBLIC INVESTMENT BN 07/06 06:13 *LAGARDE SAYS GOVT SPENDING CAN BE INCREASED IN SOME COUNTRIES BFW 07/06 06:12 *LAGARDE SAYS GOVTS NEED TO ACT ON SUPPLY SIDE TO BOOST GROWTH

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IMF Sees U.S. Growth Accelerating, Europe Growth ‘Inadequate’ 2014-07-06 06:27:53.622 GMT

By Mark Deen July 6 (Bloomberg) -- IMF Managing Director Christine Lagarde says the Washington-based fund will announce ‘slight’ changes to its growth forecasts this month compared with those published in April. She speaks in Aix-en-Provence, France. * In the U.S. “we expect a significant rebound,” Lagarde says. Risks to growth in the U.S. include the Fed’s ability to taper in an “orderly” way and the Treasury’s ability to put in place a medium-term budget framework, she added. * Growth in the euro area remains “inadequate,” Lagarde says. Lagarde says low inflation is a threat to the economic situation in the euro area. Lagarde welcomes the ECB’s recent monteary easing. * Emerging market economies in Asia should avoid a hard landing, Lagarde says.

Link to Company News:{13347Z US <Equity> CN <GO>}

For Related News and Information: First Word scrolling panel: {FIRST<GO>} First Word newswire: {NH BFW<GO>}

To contact the reporter on this story: Mark Deen in Paris at +33-1-5365-5066 or markdeen@bloomberg.net

To contact the editor responsible for this story: Vidya Root at +33-1-5365-5018 or vroot@bloomberg.net

AbbVie May Still Raise Bid for Shire, Investor Tells Telegraph

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AbbVie May Still Raise Bid for Shire, Investor Tells Telegraph 2014-07-06 07:15:11.798 GMT

By Maria Kolesnikova July 6 (Bloomberg) -- Higher offer from AbbVie “still possible,” Richard Marwood, fund manager at Axa Investment Managers, which has 1.5% stake in Shire, tells Sunday Telegraph. * Marwood was among investors who met with AbbVie CEO last wk; says “awaiting further developments” * NOTE: AbbVie offered $46.5 billion in cash, shrs for Shire * READ: AbbVie bid of GBP50/Shr for Shire would be maximum: UBS * NOTE: June 25, AbbVie said it won’t rule out hostile bid for Shire

For Related News and Information: First Word scrolling panel: FIRST<GO> First Word newswire: NH BFW<GO>

To contact the reporter on this story: Maria Kolesnikova in London at +44-20-7073-3306 or mkolesnikova@bloomberg.net To contact the editors responsible for this story: Claudia Carpenter at +44-20-7330-7304 or ccarpenter2@bloomberg.net Zoe Schneeweiss

Reuters : Double-digit profit growth may return in second quarter

(Reuters) - With all the hoopla over the Dow topping 17,000 out of the way, the market's next focus will be whether the fast-approaching earnings season can justify U.S. stocks climbing further into record territory.

Many factors point to a second-quarter earnings season poised to surprise substantially to the upside. There is an outside chance that profits for S&P 500 .SPX companies could return to double-digit growth for the first time in nearly three years.

On the heels of Thursday's strong U.S. employment report, some economists have begun talking up prospects for a 4.0 percent annual growth rate in gross domestic product for the April-through-June period, a dramatic snap back from the first quarter's contraction of 2.9 percent. [ID:nLNS3IEAIF]

"It's a strong report that capped off a strong quarter. Everything in the report points to 4 percent growth in the second quarter," said Stuart Hoffman, chief economist at PNC Financial Services in Pittsburgh, referring to June's jobs data.

Analysts polled by Reuters are calling for earnings growth for the second quarter of 6.2 percent, and a return to double digits in the third and fourth quarters: 10.9 percent and 11.9 percent, respectively. The last time that S&P 500 earnings achieved double-digit percentage growth was the third quarter of 2011, when the growth rate was 18 percent.

But some signs suggest the 10 percent handle could be breached a quarter earlier by the time all of the second-quarter numbers are in.

"There is a chance that earnings could see double digits this quarter, but only a very slim chance. The strong jobs report can translate to better earnings after a period of time but it can't be immediate," said Tim Ghriskey, chief investment officer at Solaris Group in Bedford Hills, New York.

In the coming week, aluminum producer Alcoa Inc (AA.N) will get the earnings season started on Tuesday with second-quarter results after the closing bell. Family Dollar Stores, Inc (FDO.N) will report quarterly results on Thursday before the market opens. On Friday, earnings will be released by Fastenal Co (FAST.O), a parts and tools supplier to the construction and manufacturing industries, and Wells Fargo & Co (WFC.N), the largest U.S. mortgage lender.

SIGNS OF THINGS TO COME

First among the encouraging signs of profit growth: Earnings pre-announcements from companies have the most positive skew in six quarters.

Of 133 pre-announcements from S&P 500 components so far, 97 have been negative, 24 positive and 12 in line with existing forecasts, according to Thomson Reuters data. That puts the negative-to-positive ratio at 4-to-1 for the second quarter, the lowest since the fourth quarter of 2012. Moreover, that compares with 5.9-to-1 in the first quarter and 5.5-to-1 a year earlier in the second quarter of 2013.

Second, actual earnings growth tends to exceed forecast growth by a sizable margin, because companies and the analysts who track them tend to underestimate profits.

Since the fourth quarter of 2009 when profits returned to growth after the recession, actual S&P 500 earnings growth at the end of each quarterly cycle exceeded the growth forecast at the start of each reporting period by an average of 5.7 percentage points.

Even factoring out the outsized profit growth rates in the first six quarters following the recession, earnings have come in an average of nearly 3 percentage points higher than the forecast at the start of each reporting season.

For the first quarter, for example, the profit growth rate on April 1 was pegged at 2.1 percent. When the numbers from all 500 companies in the index were tallied, though, growth was actually 5.6 percent, 3.5 percentage points higher.

With the Dow and the S&P 500 in record territory and an S&P 500 price-to-earnings ratio of 15.6, the highest in nine years, a substantial break to the upside on earnings would be a welcome development for investors.

On Thursday, the Dow closed above the 17,000 milestone for the first time, and the S&P 500 came within 1 percent of piercing through 2,000. The Dow is up 3 percent for the year, while the S&P 500 and Nasdaq are both up 7.4 percent.[.N]

"We've had such a big move to this point that good data just isn't enough to drive this market much further. It's really coming down to company earnings. That's the only thing left that can lead this market higher," said Rick Meckler, president of LibertyView Capital Management, an investment advisory firm in Jersey City, New Jersey.

>>> Blinkx the subject of bid speculation

Blinkx the subject of bid speculation

Blinkx, a listed UK-based internet video search company, was the subject of bid chatter, according to a Daily Telegraph market report. The newspaper did not cite a source for the speculation.

Blinkx shares gained 3p to close at 33.75p on Friday, 4 July, after having fallen sharply this week after the company admitted that profits would be lower than previously expected. The company’s market capitalisation stood at GBP 135m (EUR 170m) at the close of trading in London on Friday.

Source Daily Telegraph

FT : Abu Bakr al-Baghdadi, Isis leader

Abu Bakr al-Baghdadi, Isis leader

The Iraqi jihadi is using savagery and social media to extend his influence

He crowned himself caliph of the Muslim nation, successor to the Prophet Mohammed, and chose a religiously charged day – the start of the holy month of Ramadan – to deliver a landmark speech to his subjects.
The calm voice of Abu Bakr al-Baghdadi echoed grandly in the audio file released this week as he implored the world’s Muslims to rush to his newly created caliphate across Syria and Iraq. He would, he pledged, return to them “dignity, might, rights and leadership”.

Mr Baghdadi touched on practical considerations, too, calling for doctors, engineers, judges and experts in Islamic jurisprudence to join him. His intended audience extended beyond the Arab world: within minutes, translations into multiple languages, including English, French and German, had appeared on jihadi websites.
But the man better known until now as chief terrorist of the Islamic State of Iraq and the Levant, or Isis, failed to impress the wider Muslim community. “An illusion and a mirage” is how one prominent Sunni Muslim scholar described the declaration of a caliphate.
This seems to matter little to Mr Baghdadi, whose delusions of grandeur were inflated when his fighters advanced rapidly through northern Iraq last month, adding swaths of territory to areas under his control in Syria. Even if his offensive appears to have stalled north of Baghdad, it has inflicted possibly fatal damage on the unity of Iraq and shaken the ground under other Middle Eastern nations.
To some extent, Mr Baghdadi has already achieved his ambition: he has risen from obscurity to leading star of the Sunni jihadi movement and established himself as the world’s number one terrorist.
His longstanding mission to inherit the legacy of Osama bin Laden has been bolstered by a disciplined force of local and foreign fighters, and a remarkably slick social media campaign.
The drive to rival the al-Qaeda of bin Laden has defined Mr Baghdadi’s career since he joined the organisation in Iraq after the 2003 US-led invasion. He was schooled in the ruthless jihadi movement of Abu Musab al-Zarqawi, the Jordanian-born leader of the Iraqi branch of al-Qaeda. Zarqawi had considered himself a competitor to bin Laden, ignoring warnings from the leadership to refrain from excessive brutality towards fellow Sunni.

Zarqawi was killed by American forces in 2006 as Sunni tribes began to turn against his militants and liberated much of Iraq’s Sunni region from al-Qaeda. Abu Omar al-Baghdadi, his successor, died in a US air strike raid in 2010.
Mr Baghdadi took over just as US troops were preparing to withdraw from Iraq. It is to avoid the fate of his predecessors – and perhaps to foster his cult of personality – that he has remained a mystery, rarely if ever seen or heard. Some of his followers say he appears among them only in disguise. Unlike other jihadi leaders, he avoids releasing videos, preferring to bombard social media with co-ordinated propaganda. The one picture available is a grainy mugshot released by the US, with a $10m reward for information leading to his capture.

The little that is known about his early life is derived from a one-page biography circulating on jihadi sites that cannot be independently verified. Reported to be in his 40s, Mr Baghdadi is said to have been born Ibrahim Awad Ibrahim al-Badri to a family of preachers from the town of Samarra in the Sunni heartland north of Baghdad. He earned a doctorate at the Islamic University of Baghdad before taking up a preacher’s position at a mosque in Samarra. His biography stresses that he rose through the ranks of al-Qaeda in Iraq, taking part in military operations before being appointed to the ruling council.
His jihadi career was interrupted in 2006, when he was captured by US troops. In Camp Bucca, then the largest US detention centre in Iraq, he kept a low profile, returning after his release in 2009 to the western province of Anbar to pick up where he had left off. “He was a bad dude but he wasn’t the worst of the worst,” Colonel Kenneth King, then Camp Bucca’s commanding officer, told the Daily Beast. Even his parting comment did not register as a credible threat: “I’ll see you guys in New York.”
Isis’s militants are taught that the basic objective is to erase the borders between Syria and Iraq. They are told that al-Qaeda has become irrelevant after the death of bin Laden
Yet within a year, Mr Baghdadi had been elevated to the leadership of the group now known as Isis. His break came when he sent extremist fighters to join a largely Sunni rebellion against the regime in Syria. The war next door to Iraq attracted foreign jihadis and allowed him to develop an independent source of financing in racketeering and oil smuggling. Most importantly, it offered him the first concrete chance to put his vision of an Islamic state into practice, blurring the frontiers between Arab states.
It is in Syria, and precisely over this transnational vision, that Mr Baghdadi officially broke ranks with al-Qaeda, sparring with Ayman al-Zawahiri, successor to bin Laden. Mr Baghdadi has never recognised Mr Zawahiri’s authority and rejected his attempts to maintain a separation between the Syrian and Iraqi jihadi fronts.
“Isis’s militants are taught that the basic objective is to erase the borders between Syria and Iraq,” says a person who has spent time with the jihadis. “They are told that al-Qaeda has become irrelevant after the death of bin Laden.”
While he may have demonstrated his military might, at least for now, it is in Mr Baghdadi’s rush to capitalise on the battlefield gains that he is overreaching. With dubious religious credentials, his declaration of a caliphate has won more ridicule than respect. “The core strength of his organisation is military not religious authority,” says Jessica Lewis, a former US army intelligence officer now research director at the Institute for the Study of War in the US. Mr Baghdadi might be celebrated by aspiring jihadis for his audacity but he is likely to be felled by his arrogance.