>>> Deere beats by $0.16, misses on revs --> -2.23% Pre-Market (low vol)

Deere beats by $0.16, misses on revs; guides Q3 revs just above consensus; reaffirms FY14 net income guidance, lowers FY14 rev guidance slightly below consensus (93.61)
Reports Q2 (Apr) earnings of $2.65 per share, $0.16 better than the Capital IQ Consensus Estimate of $2.49; revenues fell 9.9% year/year to $9.25 bln vs the $9.58 bln consensus.
  • Sales included price realization of 2% and an unfavorable currency-translation effect of 1% for the quarter and six months. Equipment net sales in the United States and Canada decreased 12% for the quarter and 6% year to date. Outside the U.S. and Canada, net sales were down 6% for the quarter and 3% for six months, including unfavorable currency-translation effects of 2% for both periods.
  • Deere's equipment operations reported operating profit of $1.361 billion for the quarter and $2.252 billion for six months, compared with $1.663 billion and $2.500 billion last year. The decline for both periods was due primarily to the impact of lower shipment volumes, the unfavorable effects of foreign-currency exchange, and a less favorable product mix, partially offset by price realization.
Co issues upside guidance for Q3, sees Q3 revs -4% to ~$8.94 bln vs. $8.83 bln Capital IQ Consensus.

Co issues guidance for FY14, reaffirms EPS of net income ~$3.3 bln; lowers FY14 revs to -4% to ~$33.60 bln (from -3%) vs. $33.79 bln Capital IQ Consensus.

"John Deere expects to achieve near-record earnings for the full year and the company is well-positioned to deliver solid financial results throughout the business cycle," Allen said. "We're confident our extensive investments in new products and markets, coupled with a tight rein on costs and assets, will keep the company on a sound financial footing and help sustain our growth plans." These plans are essential to meeting the world's growing need for food, shelter and infrastructure, he added, and they should lead to significant benefits for the company's investors and customers in the years ahead.

(BN) *FRANCE'S ROYAL SAYS SIEMENS OFFER HAS IMPROVED

--> ALO Spiking on that

{ALO FP Equity Gip <GO>}
BFW 05/14 11:08 *FRANCE’S ROYAL: EXAMINING EUROPEAN ALSTOM SOLUTION
 BN 05/14 11:07 *FRANCE'S ROYAL: BIDS FOR ALSTOM WILL BE COMPARED
 BN 05/14 11:07 *FRANCE'S ROYAL HAS NO PREFERENCE ON ALSTOM BIDS
 BN 05/14 11:06 *FRANCE'S ROYAL: EXAMINING EUROPEAN ALSTOM SOLUTION
 BN 05/14 11:06 *FRANCE'S ROYAL:  LOOKING AT ALL ALSTOM SOLUTIONS
 BN 05/14 11:05 *FRANCE'S ROYAL: NO DECISION ON ECO TAX
*FRANCE'S ROYAL SAYS SIEMENS OFFER HAS IMPROVED
2014-05-14 11:07:29.317 GMT

--DAVID WHITEHOUSE

-0- May/14/2014 11:07 GMT

(BN) *FRANCE'S ROYAL HAS NO PREFERENCE ON ALSTOM BIDS

 BN 05/14 11:07 *FRANCE'S ROYAL SAYS SIEMENS OFFER HAS IMPROVED
 BN 05/14 11:06 *FRANCE'S ROYAL: EXAMINING EUROPEAN ALSTOM SOLUTION
 BN 05/14 11:06 *FRANCE'S ROYAL:  LOOKING AT ALL ALSTOM SOLUTIONS
 BN 05/14 11:05 *FRANCE'S ROYAL: NO DECISION ON ECO TAX
*FRANCE'S ROYAL HAS NO PREFERENCE ON ALSTOM BIDS
2014-05-14 11:07:10.905 GMT

--DAVID WHITEHOUSE

-0- May/14/2014 11:07 GMT

(BFW) France Doesn’t Favor Any Bidder for Alstom Business: Le Foll

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

BN 05/14 10:29 *FRENCH GOVERNMENT SPOKESMAN STEPHANE LE FOLL SPEAKS IN PARIS BFW 05/14 10:28 *FRANCE DOESN'T FAVOR ANY BIDDER FOR ALSTOM BUSINESS: LE FOLL

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

France Doesn’t Favor Any Bidder for Alstom Business: Le Foll 2014-05-14 10:44:41.683 GMT

By Mark Deen May 14 (Bloomberg) -- The French government aims to protect Alstom’s strategic and technical independence, maintain decision making powers in France and protect jobs, French government spokesman Stephane Le Foll says. * “Judgment hasn’t been made on any proposal,” Le Foll says. “On these three criteria, we have obtained time.” * NOTE: French Energy Minister Segolene Royal says GE bid is best for Alstom: {NSN N5K69I6JIJUP <go>}

Link to Company News:{ALO FP <Equity> CN <GO>} Link to Company News:{GE US <Equity> CN <GO>} Link to Company News:{SIE GR <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: Mark Deen at +33-1-5365-5066 or markdeen@bloomberg.net

(ZH) Russia Holds "De-Dollarization Meeting": China, Iran Willing To Drop USD Fr


That Russia has been pushing for trade arrangements that minimize the participation (and influence) of the US dollar ever since the onset of the Ukraine crisis (and before) is no secret: this has been covered extensively on these pages before (see Gazprom Prepares "Symbolic" Bond Issue In Chinese Yuan; Petrodollar Alert: Putin Prepares To Announce "Holy Grail" Gas Deal With China; Russia And China About To Sign "Holy Grail" Gas Deal; 40 Central Banks Are Betting This Will Be The Next Reserve Currency; From the Petrodollar to the Gas-o-yuan and so on).
But until now much of this was in the realm of hearsay and general wishful thinking. After all, surely it is "ridiculous" that a country can seriously contemplate to exist outside the ideological and religious confines of the Petrodollar... because if one can do it, all can do it, and next thing you know the US has hyperinflation, social collapse, civil war and all those other features prominently featured in other socialist banana republics like Venezuela which alas do not have a global reserve currency to kick around.
Or so the Keynesian economists, aka tenured priests of said Petrodollar religion, would demand that the world believe.
However, as much as it may trouble the statists to read, Russia is actively pushing on with plans to put the US dollar in the rearview mirror and replace it with a dollar-free system. Or, as it is called in Russia, a "de-dollarized" world.
Voice of Russia reports citing Russian press sources that the country's Ministry of Finance is ready to greenlight a plan to radically increase the role of the Russian ruble in export operations while reducing the share of dollar-denominated transactions. Governmental sources believe that the Russian banking sector is "ready to handle the increased number of ruble-denominated transactions".
According to the Prime news agency, on April 24th the government organized a special meeting dedicated to finding a solution for getting rid of the US dollar in Russian export operations. Top level experts from the energy sector, banks and governmental agencies were summoned and a number of measures were proposed as a response for American sanctions against Russia.
Well, if the west wanted Russia's response to ever escalating sanctions against the country, it is about to get it.
The "de-dollarization meeting” was chaired by First Deputy Prime Minister of the Russian Federation Igor Shuvalov, proving that Moscow is very serious in its intention to stop using the dollar. A subsequent meeting was chaired by Deputy Finance Minister Alexey Moiseev who later told the Rossia 24 channel that "the amount of ruble-denominated contracts will be increased”, adding that none of the polled experts and bank representatives found any problems with the government's plan to increase the share of ruble payments.
For the benefit of our Russian-speaking readers, the interview with Moiseev is below and the transcript can be found here:
Further, if you thought that only Obama can reign supreme by executive order alone, you were wrong - the Russians can do it just as effectively. Enter the "currency switch executive order":
It is interesting that in his interview, Moiseev mentioned a legal mechanism that can be described as "currency switch executive order”, telling that the government has the legal power to force Russian companies to trade a percentage of certain goods in rubles. Referring to the case when this level may be set to 100%, the Russian official said that "it's an extreme option and it is hard for me to tell right now how the government will use these powers".
Well, as long as the options exists.
But more importantly, none of what Russia is contemplating would have any practical chance of implementation if it weren't for other nations who would engage in USD-free bilateral trade relations. Such countries, however, do exist and it should come as a surprise to nobody that the two which have already stepped up are none other than China and Iran.
Of course, the success of Moscow's campaign to switch its trading to rubles or other regional currencies will depend on the willingness of its trading partners to get rid of the dollar. Sources cited by Politonline.ru mentioned two countries who would be willing to support Russia: Iran and China. Given that Vladimir Putin will visit Beijing on May 20, it can be speculated that the gas and oil contracts that are going to be signed between Russia and China will be denominated in rubles and yuan, not dollars.
In other words, in one week's time look for not only the announcement of the Russia-China "holy grail" gas agreement described previously here, but its financial terms, which now appears virtually certain will be settled exclusively in RUB and CNY. Not USD.
And as we have explained repeatedly in the past, the further the west antagonizes Russia, and the more economic sanctions it lobs at it, the more Russia will be forced away from a USD-denominated trading system and into one which faces China and India. Which is why next week's announcement, as groundbreaking as it most certainly will be, is just the beginning.

>>> (LesEchos) Alstom: Ségolène Royal prefer General Electric

Alstom: Ségolène Royal prefer General Electric
{http://bit.ly/1jf553i} English

In Paris Match, the Minister considers that the takeover bid by Alstom General Electric is "a great opportunity". While conceding on Twitter Wednesday that the project with the German Siemens "progressing well".

Ségolène Royal, the Minister of Ecology, Sustainable Development and Energy, probably used to maintain confusion and irritate his colleagues in government, starting with the Minister of Economy, Arnaud montebourg. Last divisive issue in question, that the resumption of Alstom. Arnaud Montebourg then lean towards a rapprochement with Germany's Siemens in the edition of Paris Match published Thursday, Segolene Royal believes that the takeover offer from General Electric is "a great opportunity" for Alstom.
This does not prevent, via his Twitter account, estimate Wednesday morning, the proposed merger between the French and German groups "progressing well".

But despite this tweet that some observers may be interpreted as the effect of a "crop" or taken into account by the Minister of past concessions from German Siemens in Paris Match, Ségolène Royal General Electric believes that "this is the best industrial project. Why not say it? ".

Questioning of "economic patriotism"
But more broadly, it is also expensive economic patriotism Arnaud Montebourg Ségolène Royal scratches along the way. "Why will always scare away foreign investment? We really need, though, "she is indeed request.
.

>>> Falcon 7X sets transatlantic speed record (5h54)

Falcon 7X sets transatlantic speed record

Dassault’s Falcon 7X has set a new transatlantic speed record, flying between Teterboro in the New York metropolitan area and London City airport at an average speed of Mach 0.88.
The ultra-long-range business jet – serial number 207 – took off from Teterboro airport at 08:04 local time on 2 May with two pilots and three passengers aboard. The 7X touched down at London City 5h 54min later. For most of the 3,470nm (6,430km) trip the 7X cruised at M0.88, Dassault says. The record has been sent to the Fédération Aéronautique Internationale in Switzerland for ratification as an official world record.

"This marks a new achievement for the Falcon 7X, which has consistently set the pace since it was introduced in 2007," says Dassault Aviation chairman Eric Trappier.

The 7X is one of the few aircraft that can fly non-stop from London City airport to New York.

(Challenge) Those Americans who salute the turn hired by Holland and Valls

Link to google Translation : {http://bit.ly/1ldgldg}
Link to french article : {http://bit.ly/1nMAMR3}

Those Americans who salute the turn hired by Holland and Valls

For the head of the European subsidiary of U.S. fund Colony Capital, France saw the same turn that commitment by Mitterrand in 1983. And it is not only to be welcomed.

"There are still a few months, France was perceived by Americans as a country hostile to business. This is changing." The author of these words? Nadra Moussalem, co-head of Colony Capital Europe. Mastodon manage 20 billion in assets, the fund launched in 1991 by Thomas Barrack, is a shareholder of Carrefour and Accor weight groups. There also have with Goldman Sachs and the Purpose OpCapita and a huge real estate shops in France.

"The Americans expected a shift, she arrived. Manuel Valls, similar to turning 1983 François Hollande," Nadra decrypts Moussalem. Also noted a change in counsel John Flanigan, Partner at Dentons and specialist mergers and acquisitions: "Since the arrival of Manuel Valls, I feel a palpable relief in some American customers."

In 1983, the U.S. business community had been very reassured by the "austerity turn", the radical shift in economic policy took two years after the election of François Mitterrand. The president was then returned to its commitments to early privatization mandate and had then succeeded to nationalization in France installing the social market economy.

The France again fréquentable

The parallel with Manuel Valls seems quite tempting. After the elections in spring 2012 " Rather dangerous Mr Holland "- the title of a cover of The Economist - foreign investors were worried about the" hostile to business "nature of the French government. The particular concern was crystallized around the project 75% tax on very high incomes, become, in the eyes of foreign investors, the symbol of France "socialist".

She had also taken extravagant forms like diatribe Boss tire manufacturer Titan International , which in a rare correspondence with the Minister of Productive Recovery Arnaud Montebourg , had attacked the French social model.

This page seems tour. The new Social Democratic discourse François Hollande and his meeting with Barack Obama in the solemn part of a state visit, and finally the change of government: all of which have convinced American businessmen that France was new fréquentable.

€ 1.5 billion injected in 9 months

Colony Capital is itself evidence that he believes by investing again in France, a country where he has been investing for 14 years. The fund was completely sidelined in the euro area between 2009 and 2013, while placing 95% of its liquidity s United States. Since last October, comeback in Europe in nine months, Colony Capital has invested € 1.5 billion there. According to our information, a quarter of this money has been devoted to France. With two big tickets: 260 million in the new logistics platform Carrefour and the creation of a central data storage Marcoussis Data4.

And May 19, Nadra Moussalem and Jean-Romain Lhomme, co-leaders of the French Colony office, should be the first to dive into the basins of the Molitor swimming pool. The fund has financed the renovation and a budget of 80 million euros, this mythical place of Art Deco.

(SG) Hollandenomics gaining momentum - CAC 40 - 7000 by end of 2016




* Hollandenomics Two years after the presidential election, Francois Hollande announced
a radical policy shift in January 2014, opening a new chapter in French economic policy.

* Supply-side approach The new policy is based on a simple equation: €30bn of
corporate tax cuts (page 6) financed by €50bn of public spending cuts (page 9), against a
background of structural reforms (page 12). Reforms that have been voted already will
increase market flexibility (page 36) and reduce pension costs (page 43).

* Four reasons why implementation should be smooth
1 - Clear strategy: aimed at reducing unemployment while boosting competitiveness and
growth potential over time, a tried-and-tested recipe for rebalancing government spending;
2 - Much better casting: The new prime minister, Manuel Valls, is a true leader and all seven
ministers (the team has been reduced) have experience of being in power;
3 - Improved governance: The Greens have left the government, allowing for a clearer (and
less costly) energy policy, with a focus on one of France’s key strengths: nuclear power;
4 - Low execution risk: The Socialist party has a full majority in Parliament and knows there
is no viable policy alternative given France’s high debt. The new policy has the backing of the
French employers’ association (Medef) and the approach of the trade unions is constructive.

* Favourable context for CAC40 and OAT/Bund spread A delay in European budget targets
in exchange for structural reforms will allow better growth. In this context, we continue to believe
that the spreads between French OATs and German Bunds could remain narrow. We
expect French equity performance to accelerate, with the CAC40 reaching 7000 by end-2016
or sooner and significantly outperforming the German DAX index, which is burdened by the
costly game changers stemming from the new Grand Coalition (page 18).

(SG) Hollandenomics gaining momentum

* Hollandenomics Two years after the presidential election, Francois Hollande announced
a radical policy shift in January 2014, opening a new chapter in French economic policy.

* Supply-side approach The new policy is based on a simple equation: €30bn of
corporate tax cuts (page 6) financed by €50bn of public spending cuts (page 9), against a
background of structural reforms (page 12). Reforms that have been voted already will
increase market flexibility (page 36) and reduce pension costs (page 43).

* Four reasons why implementation should be smooth
1 - Clear strategy: aimed at reducing unemployment while boosting competitiveness and
growth potential over time, a tried-and-tested recipe for rebalancing government spending;
2 - Much better casting: The new prime minister, Manuel Valls, is a true leader and all seven
ministers (the team has been reduced) have experience of being in power;
3 - Improved governance: The Greens have left the government, allowing for a clearer (and
less costly) energy policy, with a focus on one of France’s key strengths: nuclear power;
4 - Low execution risk: The Socialist party has a full majority in Parliament and knows there
is no viable policy alternative given France’s high debt. The new policy has the backing of the
French employers’ association (Medef) and the approach of the trade unions is constructive.

* Favourable context for CAC40 and OAT/Bund spread A delay in European budget targets
in exchange for structural reforms will allow better growth. In this context, we continue to believe
that the spreads between French OATs and German Bunds could remain narrow. We
expect French equity performance to accelerate, with the CAC40 reaching 7000 by end-2016
or sooner and significantly outperforming the German DAX index, which is burdened by the
costly game changers stemming from the new Grand Coalition (page 18).