>>> Nestle Nutrition does not rule out acquisitions - Polish Press

Nestle Nutrition does not rule out acquisitions

Nestle Nutrition, the international food group that is present in Poland, does not rule out acquisitions, Portalspozywczy.pl reported.

The Polish-language portal cited Tomasz Retmaniak, Nestle Nutrition Country Business Manager for Poland & Baltic Countries. Acquisitions are part of the development strategy of Nestle worldwide and the group is closely following acquisition opportunities, but they must have business justification, Retmaniak said.

In the case of Nestle Nutrition in Poland, so far there are not too many companies that could be of interest, especially because the group focuses on baby food in the age group 0-3 years, Retmaniak noted. According to Retmaniak, in Poland there are two players that have local production, naming Nestle and Danone ’s Nutricia. In this case acquisitions are rather impossible, and there are no many other firms that would fit Nestle’s portfolio, he added. Should there be other new opportunities, the group will definitely consider them thoroughly, Retmaniak told the portal.

Nestle Nutrition is constantly developing its Gerber factory in Rzeszow, Poland, since its acquisition in 2007, the article also reported, quoting the executive.

Over the past 20 years, Nestle invested in Poland PLN 2.2bn (USD 562.9m), according to the company website; Nestle in Poland has 5042 employees.

Portalspozywczy.pl, Company website

>>> O2 CEO weighs leveraged MBO following collapse of CK Hutchison deal - report

O2 CEO weighs leveraged MBO following collapse of CK Hutchison deal

The Chief Executive of O2, Ronan Dunne, is considering launching an GBP 8.5bn (USD 12.2bn) management buyout of the cash-generative UK-based mobile phone group after regulators blocked a takeover by CK Hutchison, The Daily Telegraph reported. Private-equity firms have approached Dunne during the past few weeks offering to back a leveraged buyout and O2 executives are currently looking at whether an MBO headed by Dunne would be feasible, the report said, citing unspecified sources.

The interested PE firms and their investment-bank advisers have valued a leveraged buyout of O2 at GBP 8.5bn, the report said. It noted that Hong Kong-based Hutchison was prepared to pay GBP 10.25bn but would have benefited from synergies between O2 and its own Three subsidiary in the UK.

One group interested in a leveraged buyout of O2 includes CVC Capital Partners and Apax and is headed by former Orange UK chief executive Tom Alexander, the item reported. Sources said Dunne is prepared to examine buyout proposals whether Alexander, a close associate, is involved or not.

O2’s parent, Spain-based Telefonica, is believed not to be participating in the early-stage discussions taking place, the report said. It noted that Telefonica has stated O2 might be floated, adding that the funds which were set to finance Hutchison’s failed deal are reportedly being lined up as cornerstone investors. They are likely to be interested, according to an unnamed person quoted in the report, but Telefonica is currently prevented from talking to them as an exclusivity agreement does not expire until 15 July, the item stated.

The cable broadcaster Sky is believed to be interested in making an investment in O2 but has ruled out making a takeover offer, the item reported. A person familiar with the thinking at Sky said any use of capital would have to be “smarter” than just paying out GBP 9bn, the report stated.

Daily Telegraph

>>> Asian Update

Asian Market Update: Investors shrug soft China figures with focus on PBoC statement and Japan sales tax hike delay

***Economic Data***
- (CN) CHINA APR INDUSTRIAL PRODUCTION Y/Y: 6.0% V 6.5%E; YTD Y/Y: 5.8% V 6.1%E
- (CN) CHINA APR FIXED URBAN ASSETS YTD Y/Y: 10.5% V 11.0%E
- (CN) CHINA APR RETAIL SALES Y/Y: 10.1% (11-month low) V 10.6%E; YTD Y/Y: 10.3% V 10.4%E
- (CN) CHINA APR M2 MONEY SUPPLY Y/Y: 12.8% V 13.5%E (10-month low)
- (CN) CHINA APR NEW YUAN LOANS (CNY): 556B V 800BE (6-month low)
- (JP) JAPAN APR PPI M/M: -0.3% V +0.2%E; Y/Y: -4.2% V % -3.7%E
- (JP) Japan Mar Loans & Discounts Corp Y/Y: 2.6% v 2.3% prior
- (NZ) NEW ZEALAND APR PERFORMANCE OF SERVICES INDEX: 57.7 V 55.1 PRIOR; 4-month high
- (TH) THAILAND Q1 GDP Q/Q: 0.9% V 0.6%E; Y/Y: 3.2% V 2.8%E
- (UK) UK MAY RIGHTMOVE HOUSE PRICES M/M: 0.4% V 1.3% PRIOR; Y/Y: 7.8% V 7.3% PRIOR

***Index Snapshot (as of 04:30 GMT)***
- Nikkei225 +1.0%, S&P/ASX +0.6%, Kospi +0.1%, Shanghai Composite +0.2%, Hang Seng +1.2%, Jun S&P500 +0.2% at 2,048

***Commodities/Fixed Income***
- June gold +0.4% at $1,278/oz, June crude oil +1.3% at $46.81/brl, Jul copper +0.1% at $2.07/lb
- (CN) PBOC to inject CNY45B in 7-day reverse repos
- USD/CNY: (CN) PBOC SETS YUAN MID POINT AT 6.5343 V 6.5246 PRIOR; weakest Yuan setting since Mar 3rd

***Market Focal Points/FX***
- Asian equity markets are marginally in the green in spite of selling pressure in the US on Friday and subsequent weekend release of disappointing China retail, industrial output, and fixed asset investment on Saturday. After opening lower, Shanghai Composite is up slightly in the afternoon session as PBoC released a statement assuring that disappointing New Loans and Money Supply figures out on Friday will be reversed. Risk-on was also more visible among FX majors. After falling below 108.50, USD/JPY rallied to 108.90. AUD/USD also rose to 0.7290 after a dip below 0.7250, while NZD/USD was up 30pips from the lows at 0.6775.

- China retail sales fell to an 11-month lows and industrial output was much lower than expected at 6.0%, as the key power generation component returned to negative at -1.7% v +4.0% prior. Earlier after market close on Friday, China also put out its M2 money supply at a 10-month low and New Loans at 6-month lows. Sentiment is resilient however as analysts focus on certain caveats - lending and M2 growth decline are attributed to the impact of swap bonds on the books of LGFVs which will be less prevalent in months to come. PBoC said as much too, noting that lending was restricted in industries facing overcapacity. Also of note in China, rail stocks are firmer after reports that regulators could reduce requirements for city-size urban rail transit to facilitate infrastructure investment.

- Sentiment was also bolstered by renewed speculation about the delay of Japan sales tax increase in a Nikkei report on Friday, even though cabinet spokesperson Suga has once again played down those rumors. Report suggested that the govt could wait as long as April 2019 on expectation of an extra boost to the economy going into the 2020 Olympic games in Tokyo. PM Abe also spoke ahead of the G7 this week, calling for more fiscal stimulus by major economies. Late in the day, Vice Fin Min of International Affairs (currency chief) Asakawa speculated that currency intervention may be an option, though the markets interpreted those remarks as wavering on commitment to take decisive steps, sending USD/JPY pair back below 108.70.

- Energy stood out in the commodity space as June WTI crude oil spiked up 1.5% to $47/brl, matching Friday's highs. Traders are monitoring political upheaval in Venezuela as well as oil delta sabotage in Nigeria impacting supply.

***Equities***
US equities / ADRs:
- RDS.A: Considering a $40B spinoff for non-core assets around the world to help reduce debt after this year's BG Group acquisition - UK press
- AMZN: Planning to expand private-label offerings to certain perishable items including food and household items such as laundry detergent and diapers - financial press
- GOOGL: Said to be faced with a record antitrust fine of about €3B from European commission in the next few weeks - UK press
- QIHU: Said to be valued at $15.7B after privatization funding - Chinese press

Notable movers by sector:
- Consumer discretionary: Samsonite 1910.HK +0.4% (debt financing); Calbee Inc. 2229.JP -4.8% (FY15/16 result); Shiseido Co 4911.JP +9.9% (Q1 result)
- Industrials: Elders ELD.AU -5.2% (H1 result); Nissan Motor Co 7201.JP +0.2% (fine for emission test cheating); CRRC 1766.HK +1.0% (China may cut requirements for urban rail transit development)
- Energy: China Coal Energy 1898.HK +1.7% (Apr result)
- Materials: China Molybdenum Co 3993.HK +7.0% (acquisition consideration); Yokohama Rubber Co 5101.JP -6.4% (Q1 result)
- Technology: Sumitomo Electric Industries 5802.JP +14.9% (FY15/16 result); Lenovo Group 992.HK +4.2% (to invest in AI and robotics)

>>> What to look at this Week End - 14th & 15th of May 2016

Weekly Performance
Dow -1.16% S&P -0.51% Nasdaq -0.39% Russell -1.10% Brazil -2.70% EiroStoxx +0.67% FTSE +0.21% CAC +0.40% Dax +0.84% Ibex+0.22% MIB -0.64% SMI +2.46% Nikkei +1.90% Hag Seng -1.94% CSI -1.77% Shanghai -0.31%
Strong jobs and retail sales data out this week appeared to tip the debate about whether the US economy is getting over the big hiccup seen in the first quarter. Also, somewhat hawkish commentary by a few moderate FOMC voters drove a flatter US Treasury yield curve and kept upward pressure on the greenback into the week's end. Weak Chinese trade data drove big declines on the Shanghai Composite, however the story did not seem to impact global markets more broadly. Meanwhile, crude prices steadily advanced back toward $50, where many commentators expect them to be for the balance of 2016. Corporate bond issuance picked up momentum and coincided with a slate of US Treasury issuance. The US 3- and 10-year sales were received well by the markets, but Thursday's 30-year saw demand hampered after a several large corporations sold significant amounts of longer dated debt earlier in the week. Nevertheless the US 10-year yield finished the week at roughly 1-month and 1-week lows of 1.70%. Stocks didn't make much headway as traditional retailers reported a spate of disappointing earnings, and for the week the DJIA fell 1.2%, the S&P500 lost 0.5%, and the Nasdaq slipped 0.4%.

Macro :
- France 2016 Economic Growth May Exceed EU Forecast: Moscovici
- Italy’s Four Rescued Banks Received Non-Binding Bids
- Germany’s Minimum Wage to Rise 3.2% in 2017: Bild
- Greece Needs Economic Stability, Dombrovskis Tells Kathimerini


Keep an eye on :
- ADS GY : Adidas’s Landau Says Co. Aims for ‘2-Digit’ Profit Margin: FAS
- AI FP : FTC Requires Air Liquide, Airgas to Divest Assets for Approval
- DBK GY : Germany Clears Deutsche Bank Employees in Libor Scandal: Spiegel
- EDF FP : EDF Faces Bugey Nuclear Plant Probe After Swiss Complaint: AFP
- EDF FP : Electricite De France Cut to A by S&P; Outlook Negative
- EDF FP : China General Nuclear Denies Sole Plans for Hinkley Point: Rtrs
- MC FP : LVMH’s TAG Heuer to Open Silicon Valley Office: Le Temps
- PRS SM : Prisa Says Price Set for DTS Sale to Telefonica at EU724.6M
- RCS IM : Bonomi May Be Studying RCS MediaGroup Bid: Sole 24 Ore
- RR/ LN : U.K. to Ask Rolls-Royce to Cut Fees in Jet Contract: Telegraph
- RYA LN : +ve article in the BArron's
- SAN FP :
- SRS IM : Italian Refiner Saras Signs Crude-Supply Deal With Iran
- TSCO LN : Tesco CEO Says Online Retailer Tax Advantage a Problem: Observer
- UBSN VX : UBS Names New Co-Heads of Americas Financial Institutions Group
- VOW3 GY : Volkswagen Pays Contract Employees EU3,950 in Profit Sharing
- VOW3 GY : Volkswagen to Halt Brazil Production on Lack of Seats: Estado

NY Post : Investors could yank as much as $500B from hedge funds in 2016

Investors could yank as much as $500B from hedge funds in 2016

LAS VEGAS — The $3.2 trillion hedge fund industry, reeling from its worst quarter for withdrawals since the financial crisis, is bracing for more pain.

Hedge funds, which watched in horror as investors yanked $15 billion from the funds in the first three months of the year, could see that figure climb to $500 billion by the end of the year, one pension investor said.

“We have all the leverage,” one investor said, echoing a familiar refrain at this year’s SkyBridge Alternative, or SALT, conference, here.

Hedge funds have been scrambling to raise capital as wild swings have hit some of the biggest and best-known firms.

Big pension funds and other investors are also starting to revolt against the high fees hedge funds charge — and some are even pulling their money.

As Omega Capital’s Leon Cooperman said at a panel discussion here this week, “The hedge fund model [of paying 2 percent of net asset value managed and 20 percent of profits] is under challenge.”

One way to get a hedge fund manager riled up is to seat him next to an avowed Greek socialist.

A shoutfest erupted between former Greece Prime Minister George Papandreou and free market hedgie Peter Schiff, CEO of Euro Pacific Capital, over the role of government in Europe.

Papandreou, who ran Greece during the run-up to the European debt crisis in 2009, made the case for investing in the country.

That set off Schiff on a rant about Europe’s “welfare state.”

“They make it harder for people to get employment,” said the former Republican congressional candidate and perma-bear.

Schiff is an outspoken critic of the high US deficits and feels added federal spending to stimulate the economy will only hurt the dollar.

Hedge fund managers at SALT this week named some of their recent investments, including Chinese internet company Tencent and chipmaker Xilinx.

John Burbank, who runs $4.1 billion Passport Capital and has often invested abroad, told Reuters he is betting on Tencent, calling it the “dominant internet play,” with six of the most popular smart-phone apps.

Clifton Robbins of $3.5 billion Blue Harbour Group said he likes Xilinx and was buying more as recently as Thursday.

Xilinx has some $2 billion in cash and the stock is undervalued, which would make a case for the company buying back some of its own stock, he told the news service.

FT : Low European power prices here to stay, says utility CEO

Low European power prices here to stay, says utility CEO

Low European electricity prices are here to stay, according to the new chief executive of Engie, the world’s largest non state-owned producer of electricity.
“I do not think that this is cyclical. I think that the price of electricity has no reason to rise. It will never be like it was before,” Isabelle Kocher told the Financial Times.

The bleak outlook from Ms Kocher, who was last week formally appointed at Engie’s annual general meeting, goes against predictions by some companies that a painful five-year trend of falling prices will soon reverse.
Jean Bernard Levy, chief executive of French utility EDF, last week said: “We are faced with a historical, record low in wholesale electricity prices . . . The price of a megawatt hour in western Europe has virtually divided by two.”
In Germany it has fallen from €60 per megawatt-hour in 2011 to around €25 this year. The French price has moved from around €56 per MWh to around €30. Some companies, including EDF, have predicted electricity prices in Europe will start to go up again after two or three years.
Ms Kocher told the FT that while fluctuations are possible, sluggish economic growth and the energy transition in Europe and around the world, which is putting a much greater focus on subsidised renewable energy, is set to keep prices “structurally” low for the foreseeable future.
The drop has had a deep effect on power providers. Paris-based Engie has written off nearly €24bn worth of assets over the past two years, as many of its gas power plants become uneconomical.
German operators of conventional power plants such as E.ON and RWE have faced an existential threat, with problems compounded by the government decision to close all nuclear power stations.
Last week RWE said its operating result for its conventional power generation dropped 20 per cent in the first quarter to €354m, mainly due to lower wholesale electricity prices.
Share prices have also collapsed: for EDF a fall of 63 per cent since the start of 2011, while the RWE share price has fallen 75 per cent and Engie 50 per cent over the same period.
Engie is making a push to reshape its business model, selling over the next three years €15bn worth of non-renewable energy assets, mostly in exploration and production, coal-fired power plants and US gas plants.
It will then invest €22bn in renewable energy, energy services such as heating and cooling networks, and decentralised energy technology, Ms Kocher said. It will also try to find regulated, not market based, energy contracts to protect itself from further price declines.

FT : Saudi Arabia’s credit rating downgraded by Moody’s

Saudi Arabia’s credit rating downgraded by Moody’s

Moody’s has downgraded Saudi Arabia’s credit rating, underlining deepening concern over the country’s precarious fiscal position and ability to diversify away from oil revenues.
The negative ratings action, the first since Moody’s began rating the kingdom two decades ago, follows similar downgrades by Standard & Poor’s and Fitch.

“A combination of lower growth, higher debt and smaller domestic and external buffers leaves the kingdom less well positioned to weather future shocks,” the rating agency said late on Saturday. It cut Saudi’s long-term rating from a “very low” Aa3 to the “low” A1, on a par with Japan. It said the outlook for Saudi was stable.
Moody’s predicted Saudi’s nominal gross domestic product would fall 5 per cent this year due to the effects of the oil price slump, only returning to pre-shock levels by 2019.
It said real growth over the next five years would average 2 per cent, below the 5 per cent level recorded between 2011-15, and the 2016 fiscal deficit would be roughly on a par with last year’s 14.9 per cent of GDP.
The Saudi government is therefore likely to raise $324bn — equivalent to 50 per cent of nominal GDP in 2015 — for the cumulative financing of a forecast average deficit of 9.5 per cent of GDP between 2016-20.
Mohammed bin Salman, Saudi’s powerful deputy crown prince, this month unveiled an ambitious plan to diversify the economy away from hydrocarbons and create jobs.
Moody’s said the “Vision 2030” programme could help revive the kingdom’s credit profile, but added that “the plans are at an early stage of development and their impact remains uncertain”.
It also noted an inherent tension in a programme that seeks to sustain growth and create jobs while cutting state spending and warned “the fiscal reforms needed to broaden the kingdom’s revenue base raise significant social stability considerations”.
Bankers believe the kingdom is likely to start issuing international bonds this year, after agreeing a $10bn loan with lenders, as it seeks to slow a sharp fall in its foreign reserves to $576bn. Moody’s forecast reserves declining to $460bn by 2019.
Total external debt is expected to rise to 30 per cent of GDP by 2018 and to about 40 per cent by the end of the decade, Moody’s estimated.

Barron's : After Some Turbulence, Ryanair Is Set to Soar

After Some Turbulence, Ryanair Is Set to Soar

The Irish airline has been hit by concerns over rising fuel prices and Brexit. But those negatives may fade, and the well-run company could find clear sailing.

Ryanair’s shares have been buffeted by head winds in 2016, but they now appear attractively priced and could offer 30% uplift in the next 12 months.

At Friday’s close of 12.81 euros ($14.47), Ryanair Holdings (ticker: RYA.UK) trades for just 11 times estimated earnings for the financial year ending March 2017.

That’s a huge discount to the Stoxx Europe 600 Index, which trades at a 12-month forward price/earnings multiple of 15, but it is significantly more expensive than some of its rivals. EasyJet (EZJ.UK), for instance, trades for less than nine times projected earnings for the year ending September 2017.

But Ryanair’s multiple is also far below its historical high of 18, and its midcycle range between 14 and 16. (At a multiple of 15, the stock’s price would be €17.25.) The reason: concerns about its dependence on lower fuel prices to spur growth and the effect of the British referendum next month on its membership in the European Union. Europe’s leading low-cost carrier has a 16% market share in the U.K.

Its shares have fallen 15% this year as terrorist attacks in Paris and Brussels compounded the effects of weak market sentiment. The stock is almost 20% off its 12-month high of €15.57, although it has more than doubled in the past three years.

It trades at about 8.6 times enterprise value to earnings before interest, taxes, depreciation, amortization, and rent costs, which takes into account leases. At 10 times 2017 EV/Ebitdar, Ryanair could be worth €16.70. That’s still below the consensus estimate of €16.87.

Ryanair also has American depositary receipts that trade in New York under the symbol RYAAY. Each ADR is equivalent to five ordinary shares. On Friday, they were trading at $77.21.

The Dublin-based carrier has established a track record for delivering profitable growth and for returning cash to shareholders. Following completion of an €800 million share buyback announced in February, Ryanair will have returned more than €4 billion to shareholders since 2008. That amount is equivalent to a quarter of its market value of €16.34 billion.

IT COULD GET EVEN BETTER in the years to come. If the European economy continues to grow, Ryanair could generate in excess of €5 billion in cash between 2016 and 2020, money that also could be distributed to shareholders.

Ryanair doesn’t pay a regular dividend, but it has paid special dividends in three of the previous five years, and it has repurchased stock six times in eight years.

Little wonder it is a darling among analysts. “We see Ryanair as one of, if not the ‘best of breed’ (low-cost carrier), in Europe,” wrote UBS analyst Jarrod Castle in a recent research note. He rates the stock as a Buy, with a 12-month €16.70 price target.

Ryanair operates 330 Boeing 737 aircraft from 78 bases connecting 200 destinations in Europe and North Africa. It carried 100 million passengers last year, pushing its load factor—a measure of capacity utilization—over 90%. It prides itself on exemplary punctuality and an unblemished safety record. By 2024, it expects to operate 520 planes and to carry 180 million passengers annually, an increase of more than 90% on this year.

THAT TARGET SOUNDS AMBITIOUS , but Ryanair’s approach is methodical. Fuel aside, it is squeezing out costs and passing on much of the savings to passengers in the form of lower ticket prices. It expects to trim nonfuel costs by about 2% this year. It is no surprise that passengers are voting with their feet and getting on board.

Ryanair is also profiting from a revamped Website and mobile app that make bookings easier. That’s part of its “Always Getting Better” strategy of making nice to travelers. After years of paying little attention to customer service, Ryanair performed a U-turn in 2013 to win back passengers following a price war.

Among other changes that are making a difference, Ryanair now flies from some major airports like Milan rather than hubs far out of town. More convenient locations are helping it win business travelers as well as the budget crowd.

On May 23, the airline is expected to report net income of €1.39 billion, or €0.96 a share, on sales of €6.55 billion for the year ended March 2016. Observers will closely monitor guidance, but Ryanair has a tendency to underpromise so that it can overdeliver.

In fiscal 2017, it is expected to post net income of €1.52 billion, or €1.15 a share, on sales of €6.83 billion.

Fears over the U.K. vote on EU membership may come to nothing if the country votes to remain, as seems likely. Ryanair’s fuel costs are largely hedged for the next couple of years. The carrier is in good shape, so investors could have a comfortable ride.

>>> Barrons weekend: positive cover story on REGN; positive on ETN and Alleghany

Barrons weekend: positive cover story on REGN; positive on ETN and Alleghany (Y) 

Cover story: REGN looks attractively priced, given its growth potential, and as it reaches a few key milestones over the next year, shares could rebound to $500, for a gain of more than 30%, making it one of the best plays in biotech; In addition to its drug pipeline, Regeneron has spent decades developing tools and technologies that remove bottlenecks from the drug discovery process. 

Feature: 1) Positive on ETN: Chief executive Alexander Cutler will retire this month, but will continue to work with the Campaign to Fix the Debt and the Business Roundtable to advocate for reforming the tax code and balancing the U.S. budget; 2) Positive on Y: Alleghany doesn't hold earnings calls and receives scant coverage from analysts, but its book value has grown consistently and shares have followed, which should attract investors.

Tech Trader: Tiernan Ray says that for now, the vaunted Internet of Things "is a jumble of electronic devices that don't really connect to anything. They're just dead ends" that are hampering the evolution of personal computing, partly because wearables and other devices don't have the mass appeal of the PC and the smartphone. 

Trader: Rick Seto of Flaherty & Crumrine says big banks could see a boost in June if the Fed blesses share buybacks and dividend increases; Positive on BBT: BB&T "is a boring but beautiful bank, whose shares still could give a double-digit total return, without the blue-sky assumptions about interest-rate hikes"; Positive on BAC, FRC, GS, JPM: With common-stock dividends reaching a seven-year high and interest rates at nearly zero, banks' preferred shares could give investors a boost. 

Profile: Susan Kempler, portfolio manager of the TIAA-CREF Growth & Income fund, takes a cautious approach, hunting for bargains and diligently timing winners, which sometimes results in trailing the market (top 10 holdings: AAPL, GOOG, MSFT, FB, HD, KO, GE, PEP, AMZN, PM). 

Interview: Ali Dibadj, household products and beverages analyst at Sanford C. Bernstein, says PG should be broken up (picks: PG, KO, PEP, EL; pans: CLX, CL). 

Small Caps: Positive on AXTA: Automotive refinishing company has an attractive business that's less cyclical than selling coatings for new cars, and under chief Charles Shaver it has reinvested for growth and to improve efficiency and productivity. 

Follow-Up: 1) Positive on JWN: Shares are down, but retailer is positioning itself for the changing industry with investments in e-commerce and off-price retailing, and could be the best long-term holding in the sector; M shares could also see a rebound; 2) Positive on NXST: Shares of station owner are rising, and could be worth as much as $70 as cash flow grows in the next year; 3) Positive on ODP: Shares of office-supply retailer now look cheap following the FTC's decision to scuttle its merger with SPLS; it can use a $250M pretax breakup fee to buy back depressed shares. 

European Trader: Positive on Ryanair: Carrier's stock has taken a hit because of concerns about rising fuel prices and a potential U.K. exit from the European Union, but the company is well managed and should be able to move past those issues. 

Asian Trader: Suofeiya Home Collection, Hangzhou Robam Appliances, Midea Group: Shenzhen-listed home appliances and furniture companies are poised for a boost from the growth of home sales in China, and are appealing ways for investors to play the trend. 

Emerging Markets: Low prices may be bad for emerging markets such as Russia and Brazil, but should be good for India and China, though the markets have largely ignored the fact. 

Commodities: Prices for platinum, palladium, and rhodium are up, and though the rally has slowed a bit, it should regain momentum during the second half. 

Streetwise: Among the ideas put forth at the SALT conference, Michael Bloomberg said the Republican Party is no longer the party of business, while Larry Summers said the U.S. is in some ways an emerging market.