WSJ : Google in Talks to Pay Publishers for Content in Premium News Product

Google in Talks to Pay Publishers for Content in Premium News Product
The search giant is in talks with some publishers about paying a fee for content that would be part of a premium news product

Alphabet Inc.’s GOOG -0.24% Google is in talks with publishers about paying a licensing fee for content that would be in a premium news product, according to people familiar with the matter, a move that would mark a shift in the search giant’s relationship with news organizations.

Talks are early, and it is unclear if agreements will be reached, the people said. Most of the publishers in talks with Google are outside the U.S., including in France and Europe, one of the people said.

Financial terms of the possible licensing agreements being considered couldn’t be learned.

Licensing deals between Google and news organizations for its news product would be a watershed moment for publishers, who have long sought compensation from the search giant. Google sends news organizations huge amounts of traffic each month through its search engine but has so far resisted paying news organizations for their content directly.

Google would be the second tech giant to move toward paying publishers. Last year, Facebook Inc. said it would pay news organizations—in some cases millions of dollars a year—to license their headlines and story summaries for a news tab.

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance
:

  • IMGN +20.1%, CGC +19.4%, EXPE +11.8%, ROKU +10%, AMN +9.5%, SVMK +8.1%, DXCM +7.5%, NVDA +6.5%, CC +6.1%, GDDY +5.8%, VECO +4.5%, TNET +4.3%, NET +3.8%, EBAY +2.4% (guides Q1, FY2020 following the sale of StubHub), FNF +2.1%, BKI +1.6%, BL +1.5%, MAT +1.1%, MHK +1%, CGNX +1%, RSG +0.9%, NWL +0.9%, AYX +0.8%, DLPH +0.7%

Other news:

  • EPZM +4% (announces FDA acceptance of new drug application for filing with priority review for tazverik for the treatment of follicular lymphoma)
  • RIG +1.7% (provides quarterly fleet status report; added approximately $366 mln in contract backlog, bringing total backlog to $10.2 bln)

Analyst comments:

  • FTSI +5.4% (upgraded to Buy from Hold at Stifel)
  • MTW +2.5% (upgraded to Neutral from Sell at Citigroup)
  • ZBRA +1.8% (upgraded to Overweight from Neutral at JP Morgan)
  • BL +1.5% (upgraded to Overweight from Neutral at Piper Sandler)

>>> US Early premarket gappers

Early premarket gappers

  • Gapping up:
    • CGC +14.2%, EXPE +12.4%, AMN +9.5%, DXCM +9.1%, ROKU +8.3%, SVMK +8.1%, BKI +7.4%, NVDA +7.1%, CC +6.1%, GDDY +5.8%, VECO +4.5%, IMGN +4.5%, TNET +4.3%, MAT +2.7%, NET +2.4%, EBAY +2.3%, FNF +2.1%, ESNT +1.7%, AZN +1.1%, MHK +1%, TRUP +0.9%, NWL +0.8%, AYX +0.7%, DLPH +0.7%, TRTN +0.6%
  • Gapping down:
    • CARG -19.3%, SLGL -18.4%, LPSN -17.7%, TLND -13.6%, MRC -12.7%, YELP -12.1%, ANET -8.6%, RBS -8.1%, DDOG -4.9%, MERC -4.8%, SWAV -4.7%, CRY -4.1%, YNDX -3.4%, AEM -1.8%, CGNX -1.8%, OMCL -1.5%, AUY -0.7%, RCL -0.5%, CDNS -0.5%

FT : Top NMC shareholder Muhairi quits board amid turmoil

Top NMC shareholder Muhairi quits board amid turmoil
Abu Dhabi-based healthcare group has faced turbulent time since report questioning finances


Khalifa al-Muhairi, one of NMC’s controlling shareholders, has resigned from the board of the healthcare group after a turbulent few months in which the company’s finances and ownership structure have been questioned.

The largest private healthcare provider in the United Arab Emirates said Mr Muhairi, the executive vice-chairman, stepped down on Friday. Along with India-born founder BR Shetty, he had been asked to step back from board duties earlier this week when it was disclosed that their shareholdings had been inaccurately reported.

That prompted UK regulators to start an investigation into the size of the shareholdings of Messrs Shetty and Muhairi, as well as the other Emirati controlling partner, Saeed al-Qebaisi.

Abu Dhabi-based NMC has been in turmoil since short-seller Muddy Waters questioned the group’s finances, raising doubts about its debt and asset valuations. NMC, which denied the charges, has commissioned former FBI director Louis Freeh to investigate the allegations. Its share price has since declined almost 70 per cent.

Before the Muddy Waters report, Mr Shetty owned about 15 per cent, alongside Mr Qebaisi with 17.4 per cent and Mr Muhairi with 15 per cent. Both Emiratis have since sold down their stakes at a discount to cover debts linked to their stock. Mr Shetty, who has launched a legal review into the confusion over his shareholdings, could see his ownership decline to around 5 per cent.

US-educated Mr Muhairi had over the past few years taken an increasingly direct role in the operations of the FTSE 100 healthcare group after Mr Shetty stepped down as chief executive in 2017. His resignation comes amid interest from private equity groups as the value of the company has declined precipitously down to around £1.7bn.

GKSD Investment, backed by an Italian hospitals group, has confirmed it is in the preliminary stages of a bid for NMC Healthcare. Rasmala has also expressed an interest, people close to the Dubai-based investment firm said.

Many industry executives say the operational fundamentals of NMC remain solid, creating an opportunity to invest in the hospital and clinic operator at a cheap price.

But others are sceptical given the mystery surrounding its key shareholdings, concerns over further revelations about its finances and the potential for legal action.

FT : US cites reports Deripaska helped Putin launder cash

US cites reports Deripaska helped Putin launder cash
Oligarch reportedly helped Russian president hide money, Treasury agency says to justify sanctions

The US Treasury has justified sanctions against Oleg Deripaska by citing reports that the Russian tycoon helped President Vladimir Putin launder money.

In a letter sent to Mr Deripaska’s lawyers and seen by the Financial Times, the Office of Foreign Asset Control, the agency overseeing US sanctions policy, writes that Mr Deripaska was in 2016 “reportedly identified as one of the individuals holding assets and laundering funds on behalf of Russian President Vladimir Putin”.

The Russian businessman also reportedly cancelled the listing of a company to hide Mr Putin’s money laundering, Ofac said. 

The sanctions, which hit Mr Deripaska and 23 other prominent Russian oligarchs and government officials in April 2018, were the most crippling measures imposed by Washington in response to Moscow’s 2014 invasion of Crimea and alleged meddling in the 2016 US election.

Mr Deripaska has sued Ofac in Washington, forcing the agency to elaborate on the reasons for its decision. The agency however said in the letter sent last month that the list only included “unclassified” and “releasable” justifications.

In response to the allegations that Mr Deripaska had laundered money for Mr Putin and made investments on his orders, Dmitry Peskov, Mr Putin’s spokesman told the FT: “That’s not true. As simple as that.”

Mr Deripaska once reportedly cancelled an initial public offering of automaker Gaz “to hide Russian president Vladimir Putin’s money laundering through the company, as recently as September 2017,” the letter reads. Gaz is also under US sanctions.

“In or before July 2011, Deripaska’s business activity was reportedly used, on at least one occasion, as a cover to facilitate the transfer of funds for the personal use of then Russian prime minister Vladimir Putin,” Ofac also says.

“They don’t provide any facts. Just guesses, rumours and balderdash,” Mr Deripaska told the FT in an interview. “These are unsupported allegations. This is nonsense, instead of the presumption of innocence until presented with facts that should be proven in a court.” 

All the justifications included the word “reportedly” or “reported” and no further details or sources for the arguments were provided. 

Nor does the summary include information supporting a statement made by Ofac in April 2018 that there were allegations that Mr Deripaska “ordered the murder of a businessman, and had links to a Russian organized crime group.”

The US Treasury declined to comment on both the letter and Mr Deripaska’s response. 

Mr Deripaska built an aluminium, energy and industrial empire from previously state-owned assets privatised after the collapse of the Soviet Union that made him Russia’s richest man before the 2008 financial crisis.

He was previously married to the step-granddaughter of former president Boris Yeltsin, a relationship that saw him referred to as a member of “The Family”, an informal group of people seen as close to Mr Yeltsin at the time he stepped down as president to be succeeded by Mr Putin.

The Ofac letter also alleges that Mr Deripaska made an $800m investment into “projects associated with” the 2014 Winter Olympics in the Russian city of Sochi, after Mr Putin “reportedly compelled Russian oligarchs” to do so. 

Mr Deripaska admitted that companies he controlled invested in Sochi’s airport before the Games and funded construction projects related to the event, but insisted that they had not responded to Mr Putin’s orders.

Another justification alleges that Mr Deripaska in late 2004 “reportedly acted on verbal instructions from president Vladimir Putin in a high-level bilateral meeting between Russian and Kyryz representatives”.

Mr Deripaska said that the detail refers to an investment his former aluminium company Rusal considered in Kyrgyzstan in late 2003, which never materialised.

“Some lucky US diplomat hears some rumours . . . and they put this down [in a diplomatic cable],” he said. “If someone brought something like this to a court in London . . . the judge would just tell them: ‘Please get lost’,” Mr Deripaska said.

Mr Deripaska’s lawyers and Ofac officials will now exchange a series of counter-arguments before the judge may rule on the case, a process that Mr Deripaska said could take about 18 months.

>>> Stoxx 600 Pre-Market Indications

  • Thyssenkrupp (TKA TH) +2.1%
    • Thyssenkrupp Elevator Bidders on Tenterhooks as Decision Looms
  • Worldline (WO6 TH) +0.7%
    • Wirecard Beats Highest Estimate, Waits for Results of KPMG Audit
  • Credit Agricole (XCA TH) +0.7%
    • Credit Agricole CEO Brassac Bolstered by Investment Bank Rebound
  • Siemens Healthineers (SHL TH) +0.6%
  • Metro AG (B4B TH) +0.6%
    • Metro AG Raised to Market Perform at Bernstein; PT 11.50 euros
  • Qiagen (QIA TH) +0.6%
  • Wirecard (WDI TH) -0.6%
    • Wirecard Beats Highest Estimate, Waits for Results of KPMG Audit
  • MorphoSys (MOR TH) -0.6%
  • TUI (TUI1 TH) -0.6%
    • Watch Travel Stocks After Expedia Jumps on Strong Outlook
  • Evonik (EVK TH) -0.6%
  • Carl Zeiss Meditec (AFX TH) -0.7%
  • Hermes International (HMI TH) -0.8%
  • K+S (SDF TH) -1%
  • Fuchs Petrolub (FPE3 TH) -2.9%
  • Renault (RNL TH) -5.2%
    • Renault Slashes Dividend, Posts Full-Year Profit Below Estimates

>>> TradeGate Pre-Market Indications

DAX:
  • Wirecard (WDI TH) -0.5%
    • Wirecard Beats Highest Estimate, Waits for Results of KPMG Audit
  • Lufthansa (LHA TH) -0.3%
    • Watch Travel Stocks After Expedia Jumps on Strong Outlook
MDAX:
  • ThyssenKrupp (TKA TH) +2.1%
    • Thyssenkrupp Elevator Bidders on Tenterhooks as Decision Looms
  • Siemens Healthineers (SHL TH) +1.1%
  • Metro AG (B4B TH) +1%
    • Metro AG Raised to Market Perform at Bernstein; PT 11.50 euros
  • Commerzbank (CBK TH) +0.7%
  • Aroundtown (AT1 TH) +0.7%
  • K+S (SDF TH) -1%
  • Fuchs Petrolub (FPE3 TH) -1.1%
SDAX:
  • Corestate (CCAP TH) +1.6%
  • Fielmann (FIE TH) -3.4%
    • Fielmann Disruption Risks Not Reflected, Berenberg Cuts to Sell

FT : How Anthony Vaccarello and Francesca Bellettini took Saint Laurent to €2bn

How Anthony Vaccarello and Francesca Bellettini took Saint Laurent to €2bn
With their strategies in alignment, the creative director and CEO have revived the French fashion house

Saint Laurent’s creative headquarters, a hôtel particulier on the rue de l’Université on Paris’ Left Bank, is markedly, stylishly monochrome, accented with white marble and square-backed Louis XVI chairs upholstered in black leather. A black-clad assistant brings a white Stockman mannequin downstairs, pinned with a black leather brassiere — part of creative director Anthony Vaccarello’s Autumn/Winter 2020 collection, due to be unveiled in a few weeks. She opens a white door and vanishes into a room piled high with black bolts of fabric.

You think of black with Saint Laurent not just because of the style of its founder, Yves Saint Laurent — all sleek tuxedo suits and black velvet gowns captured in moody black-and-white magazine shoots by Helmut Newton — but because of its current financial state. After decades in the red, Saint Laurent is now firmly in the black. The latest financial results of Kering, its parent conglomerate, reveal Saint Laurent’s turnover has risen to €2.05bn. It’s the first time the company has exceeded the €2bn milestone, cementing its status as one of the bestselling brands in luxury fashion globally and as Kering’s number two brand after Gucci. That growth has been achieved while almost doubling operating margins, from 13.8 per cent in 2013 to 27 per cent in 2019.

Much of the credit for that is undoubtedly due to Vaccarello, 37, whose souped-up and sexed-up clothes, riffing on the house’s signature style while updating it for an image-hungry era, grab attention. They practically sell themselves — as well as the all-important handbags and leather goods — which together account for 69 per cent of sales, according to Saint Laurent.

But credit is also due to Francesca Bellettini, Saint Laurent’s 49-year-old chief executive, who joined the house in September 2013 after her predecessor Paul Deneve left for Apple (where he helped launch the Apple Watch). She inherited a business already on the up: turnover in December 2013 stood at €556.9m, already a considerable uptick from €237.5m in 2009. In 2012, Hedi Slimane (now at Celine) was appointed creative and image director, and he began an expansive and even aggressive rebranding campaign, most notably shearing “Yves” from the brand’s name to the sleeker Saint Laurent, and making over the brands’ stores — untouched since first devised by Tom Ford in the early 2000s — at significant expense.


When Bellettini joined Saint Laurent, she met co-founder Pierre Bergé, and told him she had a vision to push Saint Laurent to sales of €3bn — a bold projection for a brand doing less than €500m. “You join this brand, you see what is there — you see that everything is already there,” Bellettini shrugs. “We have all of those goods. We just need to make sure that we find the right way to boost this engine that we have,” she says. “Between the two of us, that’s a normal conversation.”

The “two of us” refers to herself and Vaccarello, who sits beside her when we meet. A few years ago, interviewing the creative director and CEO of a fashion house together would be unthinkable. Traditionally, those figures have been viewed as adversaries, arguing respectively in favour of artistic freedom and commercial nous. But latterly, the correct coupling of creativity and commerce has become a cause for mutual celebration. Alongside creative director Alessandro Michele, Marco Bizzarri has powered Gucci to revenues exceeding €8bn; Pietro Beccari, chief executive of Dior, recruited his former colleague Kim Jones to revitalise Dior’s menswear arm in 2018, with spectacular results.

Bellettini and Vaccarello share several traits. They are both wearing black, for starters, and they speak the same language not only Italian, but also business. “I like to call Francesca to know the figures,” says Vaccarello. “To know, how are the company sales going this week? I like to know what’s working, what’s not working.” Vaccarello is concerned with how his clothes sell — prior to Saint Laurent, he helmed his own label, and focused on clothing rather than accessories. The clothes had to sell to keep him in business. “The beauty of the house of Saint Laurent, it’s that creativity supported by the rest of the company, since [Monsieur] Saint Laurent,” says Vaccarello. “It’s not a crazy house where you do experimental clothes. So we know what’s a caban, what’s a coat, we know what trousers have to look like. So there was no fight with a commercial strategy. When I’m doing the collection, I think about the street. I think about women.”

Saint Laurent is widely considered to have invented designer ready-to-wear in the 1960s — the location of the brand’s creative headquarters today mirrors that ready-to-wear line, which was originally called Rive Gauche and sold from a boutique in the Saint-Germain area of Paris. He designed a full wardrobe of everyday clothes — including trousers, which he wasn’t the first to use but which became a signature, and leather jackets, which he was the first to present in a high fashion context. Those leather jackets appeared again and again alongside strong-shouldered tailoring and, later in the 1970s and 1980s, Yves created glamorous evening dresses, particularly short and frilled, that defined the era’s after-dark look. All of those find contemporary reflection in Vaccarello’s work for the label.

It was Bellettini, together with François-Henri Pinault, who recruited Vaccarello to replace former creative director Slimane. “Anthony was my only choice,” she asserts. “I always say I was pissed off at the beginning, because we were in the moment where we got all of these editorials with some Saint Laurent bags and Anthony Vaccarello clothes.” She pauses. “At the same time, they looked pretty good and very much in synch with the spirit of the house.” Vaccarello told me, back when he joined the label in 2016, that when he was first approached it was anonymous, for a creative director role at an unnamed house. “As a joke, I said: ‘The only house I will stop my brand for and would be interested to work with is Saint Laurent.’” Little did he know.

Aesthetically, Vaccarello’s tenure at Saint Laurent has been an evolution rather than a revolution — the slender tailoring, emphatic accessories and high-octane eveningwear established by Slimane has continued, but rinsed of Slimane’s proclivities for neo-grunge styling. He has introduced more glamour, more sexuality and more leather. He has also pulled the focus back to women — strong women — and given an emphasis to using couture techniques, such as elaborate embroidery and featherwork. “It’s couture because it’s done with attention, handmade,” says Vaccarello, of his approach and his clothes. “It’s important to also have that in store.” The prices for such pieces are high — an acid-green ostrich feather coat from his Autumn/Winter 2019 collection retailed for €24,000; while a sequinned jumpsuit for spring sells for €19,000

Those obviously won’t sell as many as Saint Laurent’s blue jeans or T-shirts, but for Bellettini it’s a valuable exercise in brand positioning. In her eyes, Saint Laurent is perceived as level-pegging with the likes of Dior and Chanel, which are bigger businesses. “No matter the size you need to feel up here with the other maisons,” say Bellettini, chopping her hand in the air.

“Because when we were €500m, other maisons, like Dior, were approximately over €2bn, and Chanel close to €10bn. But the name is the same for the people. Those three incredible couturiers are up there.” She chops again. “Then they don’t know, or they don’t perceive, the real size. So I needed somebody that could take the brand up there naturally without making it feel forced.”

This has been achieved spectacularly at Vaccarello’s fashion shows, with models walking on water or lit with the grand sweep of arc-lights in the shadow of the Eiffel Tower, open air, to an invited audience of several hundred and public spectators numbering in thousands.

“I always felt that Saint Laurent was the cool brand, but maybe not the big brand,” says Vaccarello. “For me it was important to put that house at the same level of those.”

Saint Laurent’s growth has been impressive, but analysts believe there is plenty of room for more. Mario Ortelli, a luxury M&A adviser, points to the company’s limited traction in Asia and relatively low number of stores, of which there are 81 (Saint Laurent has 222 stores globally). “Usually people at our dimension have 250-plus,” says Bellettini, acknowledging the brand has been “quite late in the expansion in China”, having opened its first flagship in the country in the second half of last year. The house has already made significant inroads in that lucrative though often volatile market — APAC now counts for 28 per cent of global sales, versus 23 per cent in 2016. “That has been an advantage, because a lot of people overexpanded,” she adds.

So, what is the next stop? “We started talking about €3bn when we were €500m, and now we are at €2bn,” says Bellettini. “So I’m like, OK guys, €5bn! Why not?” She laughs, “Honestly, we have everything to be there.”