>>> US Close Dow+0,03% S&P+0,19% Nasdaq+0,43%

Closing Market Summary: Stocks End Mixed Week on Higher Note

The major averages ended the Friday session on a higher note thanks to a final-hour rally that sent the indices to session highs. The S&P 500 added 0.2%, narrowing its weekly loss to 0.1%, while the Nasdaq Composite settled higher by 0.4% to bring its weekly advance to 0.7%.

In general, equity indices respected narrow ranges until the last hour of action with the S&P 500 confined to a five-point range. The subdued activity was also reflected by below-average intraday trading volume, which received a big boost at the close from rebalancing of the Russell indices. Thanks to the final surge, almost 1.5 billion shares changed hands at the NYSE.

Only three sectors—energy, health care, and materials—ended in the red with materials (-0.4%) registering the largest decline. The smallest cyclical sector by weight (just 3.5% of the S&P 500) slumped out of the gate amid noteworthy weakness in the shares of DuPont (DD 65.44, -2.26). The Dow component tumbled 3.3% after lowering its Q1 and full-year guidance. Steelmakers also weighed with Market Vectors Steel ETF (SLX 47.44, -0.35) sliding 0.7%.

Meanwhile, the other commodity-related sector—energy (-0.1%)—also pressured the broader market, but erased the bulk of its loss in the late afternoon to end the week higher by 4.9%. For its part, crude oil settled little changed at $105.76/bbl.

Also of note, the health care sector (-0.2%) lagged throughout the session amid weakness in biotechnology. The iShares Nasdaq Biotechnology ETF (IBB 256.73, +0.35) was down as much as 0.9% intraday, but settled on its high.

The underperformance of the biotech space did not stop the Nasdaq from outpacing the benchmark index. Large cap components contributed to the outperformance with Apple (AAPL 91.98, +1.08) and Microsoft (MSFT 42.25, +0.53) advancing close to 1.2% apiece. High-beta chipmakers struggled to keep up as the PHLX Semiconductor Index added 0.2%.

In addition to technology, three other influential sectors—consumer discretionary (+0.3%), financials (+0.2%), and industrials (+0.3%)—contributed to the afternoon spike to highs. Apparel retailers underpinned the discretionary space after Finish Line (FINL 29.56, +0.41) and Nike (NKE 77.68, +0.82) reported better than expected results.

Treasuries ended little changed with the 10-yr yield at 2.53%.

Economic data was limited to the Michigan Consumer Sentiment survey for June, which increased to 82.5 in its final reading for June. That was up from a preliminary report of 81.2 and up from 81.9 in May. The consensus expected the Index to increase to 81.7. The preliminary June report initially showed a decline in confidence. That didn't jive with the big improvements in equity prices and employment conditions. However, the final reading brought the Consumer Sentiment Index in-line with the Conference Board's Consumer Confidence Index, which increased to 85.2 in June from 82.2 in May.

(Challenges) Successor to Maurice Lévy at Publicis?

Link to Google Translation : {http://bit.ly/1jrRHoi}
Link to French Original Article :{http://bit.ly/1lUVRZN}

The merger with Omnicom was intended to address the issue of governance of world's third largest advertising. His failure recovery debate.


The show must go on. Internationally Advertising Festival in Cannes, June 20, Maurice Lévy had chosen for its traditional seminar to debate the digital economy with Sy Lau, CEO of Chinese Internet juggernaut Tencent Online Media Group. The opportunity to bounce back after the sudden abandonment of merger negotiations with Omnicom, May 9

This merger of the American world number two, with the French, number three, have yet created the world leader in communications, to the British WPP. While to adjust the delicate question of the succession of Maurice Lévy, 72, whose mandate runs until 31 December 2015: after thirty months of a dual direction, the successor to Marcel Bleustein-Blanchet, founder of Publicis would have ended his career on a high note as non-executive chairman of the World leader, while operating income was John Wren, Omnicom his counterpart.

"It was a nice dream, but not a necessity," said strength with good humor the boss of Publicis shareholders came in large numbers at the General Meeting of May 28 "In comex where Maurice Levy told us the project, in the heart of July, he asked us to continue business as usual, says Arthur Sadoun, president of Publicis Worldwide. For us and our teams, negotiations had no impact, nor the non-fusion . "These uncertainties have not prevented the forties to take competition recruits choice, as David Hunt, the digital agency AKQA (WPP Group), China, or Dawn Winchester, R / GA (Interpublic) , USA.

Yet unease remains. "Strategically, it was a good approximation summarizes Dembik Christopher, an analyst at Saxo Bank. The real question now Publicis is that of the succession, this is where the failure of the merger. "And the markets are particularly attentive to these issues. Course objectives Havas were lowered when David Jones went to leave the controls to Yannick Bolloré, 34 years young heir still inexperienced.

Legacy

Dolphins, Maurice Lévy has yet had. Christophe Lambert and David Kenny did not have the patience to wait. Still in office, Jean-Yves Naouri, it is therefore given according to some, still in the race according to others. The legacy would it be too heavy? The old computer has built a machine to identify the best margins in the industry with highly centralized "shared services" that lower costs: this is the famous "model Publicis' Maurice Levy wanted to transpose across the merged group to produce 2 billion euros in annual cash flow. Visionary, he also initiated the transition to digital in 2006, with the acquisition of the U.S. agency Digitas, followed by several others. Result: in 2013, the group achieved 38% of its worldwide turnover in the digital, which is number one in the United States and around the world, according to Advertising Age.

"Today is priceless for Publicis," praised Elisabeth Badinter, President of the Supervisory Board, the General Meeting of Shareholders. Recalling that Publicis has known only two leaders since 1926 - Marcel Bleustein-Blanchet and Maurice Lévy since 1987 -, daughter of the founder identified the difficulty of succession: "This stability in governance is certainly part of the specificities of Publicis. "Will it be possible to continue after the departure of Maurice Lévy?

Two weeks after the general meeting in his office overlooking the Champs-Elysées, the CEO agrees to return to the film of the last ten months. The proposed merger? "The result of the meeting, summarizes Maurice Lévy With John Wren, we looked at how to create something masterful.." In the Timeline, it did not budge: "It was a merger of equals, with slightly shareholder of Publicis, a true 50/50 for directors, a two-thirds majority for any strategic decision, and well shared between teams from two groups responsibilities. "When it became clear that" Omnicom wanted to monopolize all positions ", it was decided to stop spending. "I thought it was better to take the risk of being criticized, rather than endanger the future of the company."

And now? "What helps Publicis is to be presented to analysts its five-year strategy in April 2013 in London, says Bruno Herring, Oddo. Objective was to achieve 18 to 20% margin in 2018 against 15.9% in 2013, increasing shared services and pursuing acquisitions in big data. " The Group therefore has no plan B to find ... Just to come back to plan A! "We are working to put this strategy day after the failed merger, says Maurice Lévy We advance in digital The real question for us is:..? How to recreate a new difference" Another wave of acquisitions is already announced.

To an extension?

As for the estate ... "The situation is quite unique, recognizes Maurice Lévy. When I succeeded Marcel Bleustein-Blanchet, I was in charge of some businesses. But we were present in France and in some other countries, which now represent only 27% of our turnover! It's complicated, and find model may be different. Any idea of cloning should be banned. "Maybe Does it take a blend of complementary skills to face the new time. Arthur Sadoun and Jean-Michel Etienne, CFO whose maintenance would have been the ultimate stumbling block in negotiations with Omnicom, have a role to play.

"More form than ever," according to his entourage, Maurice Lévy ensures that there will not be a candidate to succeed him in December 2015. But the supervisory board could ask him to stay a little longer, the age limit has been postponed 75 years -. expiring February 18, he has said, to the General Assembly 2018 Whatever happens, "I will continue to help as much as I can, even to a non-operational position." Way of saying it will give time to time.

(Challenges) What Andrea Bonomi wants to Club Med

Link to Google Translation : {http://bit.ly/1pH9T0H}
Link to French Original Article :{http://bit.ly/1mD5cGg}

What Andrea Bonomi wants to Club Med

EXCLUSIVE. The Italian businessman has unveiled its strategy for Club Med. Challenges reveals the main points. He has until June 30 to say whether it intends to launch a takeover bid.

Tension mounts at Club Med then Andrea Bonomi has until Monday, June 30, 18 am to file its proposed against-OPA. An injunction AMF it challenges in court. A maneuver, Henri Giscard d'Estaing readying weapons internally and externally. Group CEO had talks with Laurent Fabius to raise awareness on this issue comes, according to him, the French touch and influence of France. The Minister of Foreign Affairs and International Development knows the company, formerly developed by Gilbert Trigano, since his two son worked there as Gentiles Organizers (GO). HGE, as it is called internally, has also spoken with Fleur Pellerin , Secretary of State in charge of tourism, and Jean-Pierre Jouyet , secretary general of the Elysee and former head of the Caisse des Dépôts, a historical shareholder of Club Med.

The direction of Club Med, coupled with tandem Franco-Chinese Ardian-Fosun also seeking support internally. Their bid is on stand-by for a year after the use of minority who dispute the amount and fairness of the offer: she values ​​the Club Med to € 558 million. Thursday, June 26, the FO section of the company, 47% majority, has published two tracts, one of which challenges the government and stakeholders on their takeover projects, one being described as friendly, the other hostile. It is particularly concerned "a restructuring that would have no purpose other than the pursuit of improving the profitability of shareholders, whether buyers or transferees."

Andrea Bonomi is?

Few people know precisely motivations Andrea Bonomi. This Italian businessman of 48 years was born in New York and was educated at the French Lycée in London. He became known with the takeover of Aston Martin and Ducati. Today, through its Luxembourg funds Strategic Holdings and Investindustrial this financial holds a little over 10% stake in Club Med, making it the largest shareholder.

Furthermore the amount of the tender launched by Ardian-Fosun, it also disagrees with the strategy of moving upmarket Henri Giscard d'Estaing and its small presence in Europe. First time, in January 2013, it would knock on the door to enter capital management and the board. An end of inadmissibility was opposite him.

For several weeks, Andrea Bonomi is active on all fronts. To accompany him, he took consulting services communication Stéphane Fouks, VP 's Havas , who has had to manage several sensitive issues at the national level as the acquisition of Alstom by General Electric or Swiss conversion Lafarge after his marriage with Holcim. The investor, surrounded by a battalion of lawyers and bankers, flipping through the figures of the data room made available by the Board of Directors of Club Med. To supplement this information, he would have sent incognito his younger brother, Carlo Umberto, make a trip to Club Med Kamarina in Sicily, one of the largest villages in the group.

His strategic vision differs from that established by Henri Giscard d'Estaing for a decade. In particular because it does not allow the Club Med generate returns able to finance its development. To give some leeway to the company, Andrea Bonomi reportedly plans to open eight villages in the next two years. But at the same time it would reduce overheads in France 50%, which concerned 650 employees at headquarters. Finally, the businessman would put an end to the "all inclusive", the all-inclusive, which is part of the DNA of Club Med . Payment for consumption being more profitable. On Monday, he will lay his cards.

(BFW) Morrison in Talks With Two Bidders on Kiddicare Sale, Sky Says

Morrison in Talks With Two Bidders on Kiddicare Sale, Sky Says
2014-06-27 13:58:36.314 GMT


By Christopher Kingdon
     June 27 (Bloomberg) -- Morrison narrowed field of bidders
to Endless, Jon Moulton’s Better Capital on sale of Kiddicare,
Sky News reports, citing unidentified sources close to process.
  * Final offers due today; announcement on winning bidder due
    as soon as next week
  * Morrison likely to have to pay substantial “dowry” to
    successful bidder: Sky citing unidentified people
  * Morrison, Better Capital declined to comment to Sky; Endless
    could not be reached


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

To contact the reporter on this story:
Christopher Kingdon in London at +44-203-525-0872 or
ckingdon@bloomberg.net
To contact the editor responsible for this story:
Clyde Eltzroth at +1-212-617-1879 or
celtzroth1@bloomberg.net

(ZH) Why CEOs Love Buybacks

The CEOs of U.S. companies are compensated exceedingly well with the heads of the S&P 500 paid 331 times as much, on average, as production and nonsupervisory employees. Aswe wrote a month ago while explaining the 'mystery and completely indiscriminate' buyer of US stocks: "since a vast majority of executive compensation agreements are tied to company stock "performance"; C-suites are perversely happy if their own corporate cash is used to buy the stock near or at all time highs: after all management year end bonus will simply benefit that much more, while keeping activist investors delighted (and away from the embarrassing public spotlight)." Sure enough, as HBR explains, executive comp in recent decades comes down to four words: stock options and restricted stock (and more and more in the last few years).
The CEOs of U.S. companies are compensated exceedingly well. A recent analysis by the AFL-CIO found that the heads of S&P 500 companies are paid 331 times as much, on average, as production and nonsupervisory employees. Regardless of whether this is fair - some believe that CEOs aren’t paid nearly enough - it’s worth understanding how we got here.
As the black line shows, CEO pay took off in the 1990s. This resulted in part from activist shareholders’ and academics’ pushing for stronger links between compensation and returns. The SEC also changed holding-period rules so that the acquisition of an option rather than its exercise was the basis for reporting a purchase, making stock options much more attractive to executives.
Kevin J. Murphy, a professor at the USC Marshall School of Business and an expert on executive pay, has collected data and examined research on the earnings of the S&P 500 CEOs since 1992. He finds that - as the bands of color illustrate above - much of the story of executive comp in recent decades comes down to four words: stock options and restricted stock.
In short, corporate CEOs and CFOs couldn't care less if your friendly Wall Street broker uses the repurchase allocation to buyback the stock at all time highs. In fact, since a vast majority of executive compensation agreements are tied to company stock "performance" C-suites are perversely happy if their own corporate cash is used to buy the stock near or at all time highs: after all management year end bonus will simply benefit that much more, while keeping activist investors delighted (and away from the embarrassing public spotlight).
So the next time someone asks who keeps on buying stock despite all the negative newsflow, despite the bond yield sliding ever lower despite relentless broken-record pleas that a "recovery is just around the corner", and with vol near all time lows confirming peak complacency... now you know.
Except when the cheap money runs out (or reach for yield demand slows) and investors' mindsets finally switch to realize that appeasement viua buybacks is a loser's game in the end for a company' staying power (as opposed to capex and real investment)

(BI) L'Oreal, Coty, P&G Most Exposed to Declining U.S. Perfume Market

L'Oreal, Coty, P&G Most Exposed to Declining U.S. Perfume Market
2014-06-27 13:00:10.468 GMT

BI HHCP GLOB SBKEYS
L'Oreal leads in North American fragrances, with 16.5% market
share, according to Euromonitor. This expanded 50 bps in 2013,
linked to its focus on higher-growth designer branded
fragrances, including Viktor & Rolf, Giorgio Armani, Diesel and
Ralph Lauren. Coty's market share tumbled 60 bps to 14.2%. The
company's licenses include a higher proportion of mid-priced
celebrity names and can prove more volatile. Procter & Gamble
added 30 bps to 10.1%, with most focus on designer brands.

|0|0|396854|123457874|BI HHCPG 1096 |1096-2-A-Units|A12||USD|R2943,2944,2945|BI HHCPG 1096 |1096-2-A-Units|A12||USD|R2943,2944,2945|

This research note has been published by Bloomberg Industries.
For more information, see BI <GO>
-0- Jun/27/2014 13:00 GMT

>>> TUI AG Statement Regarding Proposed Merger Of TUI Travel and TUI AG


TUI AG Statement Regarding Proposed Merger Of TUI Travel and TUI AG
- Reached an agreement in principle on the key terms of a possible all-share nil-premium merger of TUI Travel and TUI AG 
- Under the terms discussed between the parties, TUI Travel shareholders (other than TUI AG and certain connected parties) would receive 0.399 new TUI AG shares for each TUI Travel share that they own