>>> Summary of US auto May sales results

Summary of US auto May sales results

* General Motors (GM +1.6%) US May sales +13% y/y to 284,694 vehicles delivered.  * Ford Motor (F +0.5%) US May sales +3.0% y/y to 254,084 vehicles.  * Toyota Motor (TM +0.9%) USA May sales +12.6% y/y to 243,236 units on DSR basis.  * Honda Motor (HMC -0.4%) America Honda unit May sales +9.0% to 152603.  * Fiat SpA (FIATY -0.2%) Chrysler U.S. sales +17% y/y to 194,421 units.  * BMW Group (BAMXY +0.7%) US May sales +13.3% to 35331.  * Porsche (POAHY.PK -0.2%) May sales +17.3% year/year to 4,609 vehicles.  * Daimler AG (DDAIF +0.5%) Mercedes-Benz USA May sales +8.1% y/y to 29,570.  * Volkswagen AG (VLKAY -0.8%) America unit May sales -15.4% y/y to 32163 units.  * Nissan Motor (NSANY +0.1%) May US sales +18.8% y/y to 135,934 units  * Hyundai Motor (HYMTF flat) America unit May sales +3.7% y/y to 70,907 vehicles * Mazda Motor (MZDAY +1.1%) May U.S. sales rose 22.5% year/year to 29,731 vehicles. * Kia Motors America (KIMTF flat) May sales +14.8% y/y to 60,087. * Mitsubishi Motors (MMTOF -2.1%) May sales +54.2% y/y to 7269 units. * Audi of America unit May sales +25.5% y/y to 16,601 vehicles * Subaru of America May sales +11% y/yr to 44,170 vehicles

(BFW) *GERMAN GOVERNMENT SAID TO CONSIDER BUYING ALSTOM STAKE VIA KFW

 BN 06/03 14:57 *GERMANY SAID TO CONSIDER ALSTOM STAKE VIA KFW TO BACK SIEMENS
 BN 06/03 14:57 *GERMAN GOVERNMENT SAID TO CONSIDER BUYING ALSTOM STAKE VIA KFW
 BN 06/03 14:57 *GERMAN AIM SAID TO BE CREATING EUROPEAN RAIL, ENERGY CHAMPIONS
*GERMAN GOVERNMENT SAID TO CONSIDER BUYING ALSTOM STAKE VIA KFW
2014-06-03 14:57:40.616 GMT

--JIM SILVER

-0- Jun/03/2014 14:57 GMT

(Forbes) Carl Icahn Joins Bill Ackman In Bet On Fannie And Freddie

Carl Icahn Joins Bill Ackman In Bet On Fannie And Freddie

Carl Icahn appears to have joined the hedge fund party that is trying to make a fortune off of the resuscitation of mortgage giants Fannie Mae and Freddie Mac, the government sponsored enterprises that were bailed out during the financial crisis and placed into conservatorship.

Icahn took a $50 million position in Fannie Mae and Feddie Mac in March by buying the common stock from Bruce Berkowitz’s Fairholme Funds. Icahn bought 6.8 million shares of Fannie Mae for $4.03 per share and 5.7 million shares of Freddie Mac for $4.04 per share, according to a court document that was first reported by The Wall Street Journal and CNBC. Berkowtiz, who bet early and big on Fannie and Freddie, not only gets to book a nice gain on the shares he sold to Icahn, but he potentially also gets an ally in his effort to make outsized gains from his continued large position in both the common and preferred shares of the GSEs.

Disclosure of Icahn’s bet on one of the most politically explosive and controversial investments comes in the aftermath of reports about a federal insider-trading probe that is looking at Icahn, golfer Phil Mickelson, and the prominent sports better William Walters. All three individuals have denied any wrong doing and the federal investigation on the surface appears to be weak. Icahn’s did not know about the federal insider trading investigation, which is looking at trading in Clorox in 2011, when he bought shares of Fannie Mae and Freddie Mac from Berkowitz.

Nevertheless, Icahn, the 78-year-old dean of activist investors, is joining what has essentially become a huge activist play against the federal government. Ironically, his new teammate is Bill Ackman, the billionaire whose hedge fund has taken a large position in the common shares of Fannie Mae and Freddie Mac. Ackman and Icahn have feuded over the years, culminating in a huge confrontation over Herbalife that is now deep into its second year. The two activist investors did, however, recently patch up their personal relationship.


Some prominent money managers who are heavily invested in the preferred shares of Fannie and Freddie, like Berkowitz and Richard Perry, have sued the federal government, alleging it acted illegally by getting Fanne Mae and Freddie Mac to pay the government nearly all of its huge profits in the form of dividends. The Obama Administration has said it wants to wind down Fannie Mae and Freddie Mac as part of its effort to reform the mortgage market, which remains utterly dependent on the GSEs. Berkowitz has been the most vocal participant in this activist campaign, doing television interviews andissuing slide presentations with his buyout proposals. Ackman, on the other hand, has departed from his normal style and remained relatively quiet in his approach.

Shares of Fannie Mae increased by 1.8% to $4.52 and shares of Freddie Mac were also up by 1.3% to $4.50 in morning trading.

>>> GILD +0.9% - hearing memo from CMS onm hepatitis C Virus

Gilead Sciences slightly higher off the open; uncertain of exact timing but CMS recently issued decision memo for screening for hepatitis C virus in adults - screening covered for those determined to be high risk

The Centers for Medicare & Medicaid Services (CMS) has determined the following:
  • CMS will cover screening for HCV with the appropriate U.S. Food and Drug Administration (FDA) approved/cleared laboratory tests, used consistent with FDA approved labeling and in compliance with the Clinical Laboratory Improvement Act (CLIA) regulations, when ordered by the beneficiary's primary care physician or practitioner within the context of a primary care setting, and performed by an eligible Medicare provider for these services, for beneficiaries who meet either of the following conditions.
    • A screening test is covered for adults at high risk for Hepatitis C Virus infection. "High risk" is defined as persons with a current or past history of illicit injection drug use; and persons who have a history of receiving a blood transfusion prior to 1992. Repeat screening for high risk persons is covered annually only for persons who have had continued illicit injection drug use since the prior negative screening test.
    • A single screening test is covered for adults who do not meet the high risk as defined above, but who were born from 1945 through 1965.
  • --> Full Memo if you care {http://www.cms.gov/medicare-coverage-database/details/nca-decision-memo.aspx?NCAId=272}

FT : Vodafone plans to move Silicon Valley innovation centre to London

Vodafone plans to move Silicon Valley innovation centre to London

Vodafone will move its product innovation and development team out of Silicon Valley to establish a centre in London, reversing the long-term migration of technology talent and ideas to the West Coast hub.
European politicians have warned about the damaging effects of losing skills and experience as technology companies either move to the Silicon Valley to benefit from more readily available pools of funding, or are acquired by larger US rivals.

However, Vodafone said that its so-called “xone” hub would benefit from the technology skills and talent in the UK and Europe and bring the research and development operations closer to customers in Europe, Africa and India.
The team will move from an existing base in Silicon Valley to London later this year. The office will be responsible for the development and incubation of emerging technologies and mobile apps, and will include about 20 engineers, technical architects and designers. Vodafone plans to expand the xone team in London.
British politicians will welcome the arrival of more jobs in a sector that they have long courted. Vodafone’s operations in the UK have been scrutinised in the past given the company pays little or no corporation tax in the country.
The British group sold its stake in Verizon Wireless earlier this year, although it still maintains a number of US offices including in the Silicon Valley.
Vodafone Ventures, Vodafone’s capital investment arm, will maintain its headquarters in California and will continue to work with early-stage start-ups. Vodafone Global Enterprise, which serves businesses throughout the US, will also maintain its presence in Silicon Valley.
Pratapa Bernard has been appointed as the head of Vodafone xone, reporting to Stefano Parisse, Vodafone’s consumer services director. Xone was set up two years ago.
Mr Parisse, Vodafone’s consumer services director, said: “Establishing a new hub for Vodafone xone in London will bring our product development team closer to the customers it serves.
“It will allow us to draw on a vast pool of technology talent in the UK and Europe and simplify our development process, enabling us to get the very latest technology into the hands of our customers as quickly as possible.”

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: SWKS +5.5%, GIII +4.1%, SLP +2.2%, GWRE +1.6%, DG +0.6%.

M&A news: HSH +8.5% (confirms revised proposal to acquire Hillshire Brands At $55.00 per share in cash), AEC +0.7% (Land and Buildings sends letter to the Board of AEC; encourages sale of the company to maximize shareholder value), DFZ +0.6% (announces end of 'Go-Shop' period and designation of an excluded party).

Select mining stocks trading higher: IAG +2.3%, SVM +1.9%, PAAS +1.9%, GG +0.7%, SLW +0.6%.

Other news: PVCT +23.3% (PV-10 data presented at ASCO), IDCC +14.3% (announces patent license agreement with Samsung (SSNLF); issues guidance), SPEX +9.4% (confirmed it bolstered its balance sheet with $20 million equity financing), RNA +4.9% (announces regulatory path forward for drisapersen as a potential treatment for DMD), LOGI +3.9% (introduced the Logitech X300 Mobile Wireless Stereo Speaker), MPET +3.6% (announces plans for two UK wells in 2014), TFM +3.1% (insider buying), FBHS +2.5% (announced $250 mln share repurchase authorization), NVTL +2.4% (confirmed it received a favorable Supreme Court ruling in its patent infringement case), RFMD +2.4% (in sympathy with SWKS guidance), TQNT +2.2% (in sympathy with SWKS guidance),SUNE +1.1% (entered into a comprehensive agreement with Huantai Group, a Chinese solar PV co, to develop solar projects and supply key materials, technologies and services for the Chinese market), HLF +0.9% (commented on ruling by US Court of Appeals: 'Today's decision validates validates product consumption by participants as a legitimate measure of demand for multi-level marketing companies and rejects Bill Ackman's fundamental thesis').

Analyst comments: RAS +1.9% (initiated with a Buy at MLV & Co), PBFX +1.3% (initiated with an Overweight at Barclays, init Buy at Citi), MGAM +1.2% (initiated with a Buy at Stifel), LRCX +0.6% (initiated with a Buy at Jefferies), NBG +0.6% (upgraded to Buy from Reduce at Nomura), MCC +0.5% (initiated with a Buy at MLV & Co)

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: ZQK -38.3%, KKD -10.9%, AMWD -5.6%, CMCM -1.2%, .

M&A news: NPSP -3.1% (co disclosed that it has not had any communications with Shire (SHPG) regarding a potential acquisition) .

Select EU names showing weakness: NOK -1.2%, DB -1.2%, ALU -1%, HSBC -0.9%, BCS -0.8%.

Select gaming stocks trading lower following soft May Macau gross gaming rev: MPEL -3.9%, LVS -2.5%, WYNN -1.8%, MGM -1.8%.

Select metal related names showing early weakness after wte China HSBC PMI: CLF -1.5%, RIO -1.3%, BHP -1.1%, MT -0.9%.

Other news: COMM -5.6% (filed for 15 mln share common stock offering by selling shareholders), BAGL -5.3% (in sympathy with KKD), WAIR -4.5% (announces 6 mln share offering of common stock by The Carlyle Group), GOOD -4.2% (announces common stock offering, size not disclosed), NLSN -1.5% (announces secondary offering of 20 mln shares of common stock by selling stockholder), GEVA -1.5% (light volume, presenting at The European Atherosclerosis Society Congress).

Analyst comments (may also be related to news): AEIS -11.3% (downgraded to Hold at Needham following announcement of CEO transition), CLVS -10.2% (downgraded to Neutral from Buy at Citigroup), CNC -2.4% (downgraded to Sell from Neutral at Citigroup)
.