>>> Obrascon Huarte Lain lender Banco Santander declines to lead EUR 1bn capital

Obrascon Huarte Lain lender Banco Santander declines to lead EUR 1bn capital increase 

Obrascon Huarte Lain (OHL) main creditor Banco Santander decided yesterday (5 August) not to participate in the arrangement of the construction group's EUR 1bn capital increase, El Confidencial reported citing unidentified financial sources.

OHL announced on Tuesday that it had mandated JPMorgan, BofA Merrill Lynch, Société Générale and UBS to coordinate the capital raise transaction. According to the Spanish-language report, Santander was expected to be among the lead banks, but the institution balked at the conditions as imposed by OHL on the brokers of its deal. Under the terms of the transaction, in the event that the capital increase is not fully subscribed by OHL shareholders, the lead arrangers would have to take on the unsubscribed shares.

The Villar Mir family has committed to cover EUR 380m of the EUR 1bn offer, or about 40% of the operation, the report noted. The Villar Mir family will reduce its stake in the company from 57% to 50%. The OHL shareholder group is funding its participation in the capital raise via the recently announced sale of a high-rise marquis Torre Espacio building in Madrid.

Unidentified sources, cited in the report, linked Santander's refusal with the sale of a 0.24% stake in Santander by Juan Villar Mir last June. Two months earlier, Santander had re-elected Villar Mir to the board of directors of its holding company, El Confidencial noted.

El Confidencial

(BFW) French Banks’ Capital Lags Lvls at Top 50 European Lenders: S&P


BN 08/06 08:43 *S&P SAYS FRENCH BANKS' CAPITAL NOT LIKELY CREDIT STRENGTH
BN 08/06 08:41 *S&P SAYS FRENCH BANKS' CAPITAL NOT LIKELY A CREDIT STRENGTH

French Banks’ Capital Lags Lvls at Top 50 European Lenders: S&P
2015-08-06 08:50:26.456 GMT


By Charles Daly
(Bloomberg) -- Large French banks still have further to go
to build capital before capital can be considered a positive
factor for the ratings, S&P says in a report.

* With exception of mutualist groups, higher dividend growth
may curb the amount of net capital generation
* Potential regulatory initiatives by ECB, Basel could exert
pressure on regulatory capital ratios
* Capitalization is still a credit-neutral factor for the
majority of banks S&P rates in France
* Absent “significant unexpected developments”, S&P
believes this will remain the case

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cdaly22@bloomberg.net

(TheDailyBest) Synthetic Weed Is F-ing Up New York

Synthetic Weed Is F-ing Up New York // http://thebea.st/1Dsyn9R
Subway surfing, hallucinations, suicide, murder. Thanks to K2, people are losing their minds—literally.

If you haven’t heard of K2, consider yourself lucky.

The drug—also called “synthetic marijuana” and “spice”—is wreaking havoc across America, where the lethal high has sent people “surfing” on top of the subway and plunging to their deaths in the Hudson River. Made up of a mixture of herbs, K2 is sprayed with synthetic cannabinoids that are untested on humans. The hallucinogen has sent more than 5,000 people to poison control centers already this year.

Use of the drug has been skyrocketing since 2011, bringing it with it horrific scenes of psychotic breaks, suicide, and murder. This week the focus is on New York City, where the NYPD released two tapes of people allegedly high on K2/Spice. One shows of a homeless man naked on all fours howling at a car; the other, a man breaking through a wooden fence (Gothamist later discovered it’s actually a man on PCP, from an episode of Cops in 2003).

NYPD commissioner Bill Bratton held a press conference to discuss the drug, which has been making the rounds through the homeless population of NYC. Bratton, who said he’s concerned about the potential for overdose and death, dubbed it “weaponized” marijuana. “A number of individuals, when under the influence of this drug, are relatively impervious to pain and also have significant enhancement of their physical strength,” he said. Adding later: “You’re going to see much more of it in the short term.”

Sold at gas stations and smoke shops for as little as $5, K2 is packaged with words like “all natural” and “not for human consumption.” The latter is a transparent warning meant to keep law enforcement away, but widely ignored by those using it. In response to the increased use several years ago, the Drug Enforcement Administration placed five of the cannabinoids on the schedule I substance list. But those consuming any other type than the regulated five are, technically, using something that’s legal.

Attracting young teens and homeless people alike, the high that comes with the mixture of herbs is lethal. Side effects include paranoid delusions, racing heartbeat, disorganized thoughts, severe agitation, assaultive behavior, suicidal ideation, and catatonia, among others. A 2013 study from the American Academy of Addiction Psychology coined the term “spiceophrenia,” to describe the high.

One of the most severe cases came in 2014, when nearly 120 people in Texas overdosed on the drug in a single week. A similar outbreak occurred in Louisiana, where hospitals in Baton Rouge saw more than 110 patients in a single month. This May through July, a hospital in Austin, Texas received more than 439 calls to report exposure to K2.

Many of the incidents are isolated, like the 2014 case of Connor Eckhardt, a 19-year-old in California who died after one hit of K2 sent him into a coma. Or, more recently, the 23-year-old in New York who jumped off a pier in the West Village and drowned.

In an effort to spread awareness about the drug’s dangers, Eckhart’s parents launched a social media campaign, posting pictures of him unconscious in a hospital bed. “This is our son, Connor Reid Eckhardt. He made the deadly choice to use a product called K2, or spice, and is completely brain-dead,” reads the Facebook page. “This is not a game, it is totally real, please help us fight his fight.”

Research on the clinical effects of K2 have poked holes in claims that the drug is closely related to real marijuana—so much so that the nickname “synthetic marijuana” has started to fade. While both marijuana and K2 share bind to the CB receptor in the brain, they do so with a different chemical. In marijuana, the active ingredient is naturally-occurring THC; in K2, it’s a synthetic—and for more powerful. Experts estimate that K2’s potency to be up 100 times stronger than THC.

Due to these disparities, many consider K2’s nickname “synthetic marijuana” to be a misnomer—one that damages real marijuana’s image.

“Clinically, they just don’t look like people who smoke marijuana,” said Dr. Lewis Nelson of NYU’s Department of Emergency Medicine, Division of Medical Toxicology. “Pot users are usually interactive, mellow, funny. Everyone once in a while we see a bad trip with natural marijuana. But it goes away quickly. With people using synthetic, they look like people who are using amphetamines: they’re angry, sweaty, agitated.”

With new cannabinoids being developed each day, the K2 problem is a moving target for the federal government. Science, too, is struggling to keep up the ever-changing makeup of the drug. Until it’s clear what it is, and how we can stop its use, anecdotal evidence leaves us with an important message: it’s terrifying.

(MS) Apple : Addressing Investor debates : Overweight maintained, TP$150

This is not a repeat of 2012: We acknowledge that with Apple building iPhone component inventory, supply chain data points are likely to be volatile as builds and shipments converge over time. While these headlines may weigh
on the stock near-term, we are buyers on any related weakness as we see an upward bias to our iPhone unit and gross margin assumptions for the reasons discussed above. We do not view the current set-up as similar to 2012 given 
1) gross margins are improving (not deteriorating) as we head into the next iPhone cycle, 
2) low institutional ownership, 
3) competitive product line-up / stickier ecosystem against Android handsets, and 
4) more robust product/services roadmap.

--> Full note attached.

(Re/code.net) Yes, Uber Lost a Lot of Money — And It Will Lose More


Leaked Uber financials from 2012 to 2014 show that the company lost a ton of money during those years.

That’s no surprise: Another set of leaked numbers, published earlier this year by Bloomberg, showed the company had losses of $470 million on sales of $415 million. And its losses are likely to keep growing, as it expands in China, a market it entered in late 2013.

Re/code has independently confirmed the authenticity of today’s numbers, which first appeared on Gawker.

And yes: Young private companies routinely spend more than they’re bringing in as they establish their brands and build out new markets. Investors are usually fine with it, up to a point.

Or, in the words of an Uber rep who spoke to Re/code today: “Shock, horror, Uber makes a loss. This is hardly news and old news at that. The case of business 101: You raise money, you invest money, you grow (hopefully), you make a profit and that generates a return for investors.”

Uber in particular dumps a lot of cash: It subsidizes rides for passengers and offers huge signing bonuses for new drivers in order to build up both sides of its marketplace.

“Of course they’ll lose money if they’re investing aggressively to build out in China or new markets like Albuquerque,” RBC Capital Markets’ analyst Mark Mahaney said. “What really matters is: What’s their profitability in some of their oldest markets? I bet if they would go public they’d talk about their profitability in their lead markets just like OpenTable did and Netflix does.”

In other words, what the leaked numbers don’t show you is how Uber is faring in established locations like San Francisco, but we don’t know because those numbers haven’t been leaked. They’re the missing context from the revealed financial documents.

The Gawker documents also show that Uber was growing quickly between 2012 and 2014 — once again surprising no one. Its net revenue from the second quarter of 2014 was 57 million, almost triple its net revenue from the same quarter of 2013. If its revenue at least stayed flat or grew for the rest of 2014, then it brought in more than $200 million that year.

One number of note: Uber has been putting a big chunk of change into general and administrative costs — $59 million in the second quarter of 2014 alone. Those are likely the result of legal costs the company generated by fighting regulatory battles across the world, from worker classification lawsuits in California to lobbying against Mayor Bill de Blasio in New York.

(MKR) Makor - Tech View Euro Stoxx 50 Index (3,676 last) - caution below 3,6...


Makor - Tech View Euro Stoxx 50 Index (3,676 last) - caution below 3,691-3,714, buy dips to 3,513
2015-08-06 07:04:34.608 GMT


•The Index is testing the important horizontal resistance area at
3,691-3,714. A sustain move above it would open the way for a re-test of the
cycle high at 3,836.

•While below 3,691-3,714 caution is needed, there is support at 3,627
(yesterday low), 3,554 (55dma) and then the most important 3,513 support level.

•Given our Elliot wave count and the bullish price action on the monthly chart
we continue to expect 1 more leg higher (a wave '5') before a possible
correction and therefore we would attempt to buy dips to 3,513 with a stop below
this level.

Strategy: Long from 3,565 took 3.23% profit at 3,680, step aside for now.

Support: 3,627, 3,554 (55dma) & 3,513 (breakout level & last week low)

Resistance: 3,691-3,714 & 3,836 (major)

See Full Report Attached

Contributed via: Bloomberg Publisher WEB Service

Provider ID: ebe24852ac9d4699a6ea967d5daa4bef


-0- Aug/06/2015 07:04 GMT

(BN) Baxter International Becomes Dan Loeb’s Newest Activist Target


Baxter International Becomes Dan Loeb’s Newest Activist Target
2015-08-05 21:26:05.402 GMT


By Beth Jinks
(Bloomberg) -- Baxter International Inc. is being targeted
by activist investor Dan Loeb’s Third Point, which is seeking
two board seats and a say in the hunt for a new leader at the
medical-supplies company.
Third Point went public with its bid for changes at Baxter
on Wednesday, disclosing a stake of almost 10 percent in the $23
billion company, including stock and options. Third Point sees
Baxter as undervalued given its strong global franchise and
opportunities to boost profit margins, said a person with
knowledge of the matter.
After spinning off its drug business last month to create
Baxalta Inc., Baxter is at a turning point. Chief Executive
Officer Robert Parkinson, 64, told investors last week that the
company’s board had hired a search firm to find his replacement,
given his age and 11-year tenure at the company. And now that
the spinoff is complete, Baxter is in better position to look at
more deals, he said.
Baxter makes hospital supplies, such as infusion pumps and
surgical tools, and dialysis systems for kidney disease. While
Baxter shares have risen 11 percent since the spinoff, it has
still underperformed competitors, gaining 15 percent a year over
the past five years, compared with 23 percent for other medical-
supplies providers.
Its operating profit margin of 14 percent over the past
four quarters compares with 18 percent for Becton Dickinson &
Co. and 25 percent for CR Bard Inc., though each competitor has
a different mix of products, making it difficult to compare.

Cost Cuts

Particularly post-spinoff, the company has lots of
opportunities to get more efficient, cut costs and expand sales
to boost earnings, said the person with knowledge of the matter,
who asked not to be identified because the discussions between
Baxter and Third Point are private.
The activist fund met with Baxter officials at the
company’s Deerfield, Illinois, headquarters on July 30, and
again with lead director Tom Stallkamp at Third Point’s New York
office Tuesday, the person said. Third Point was critical of the
current board’s stock ownership, which it estimated at less than
200,000 shares, the person said.
The recent gains in the stock have perplexed Joanne
Wuensch, an analyst at BMO Capital Markets Corp.
“Quite honestly, with Baxter I’m scratching my head,”
said the analyst, who has the equivalent of a hold rating on the
stock. “I think what is being priced in at this stage is more
operating leverage than their guidance would indicate, a new CEO
that would provide better productivity and the access to Third
Point brain power.”

Willing Partner

In a letter to Baxter released publicly Wednesday, Third
Point said that in addition to the board seats and a role in the
CEO search, the activist investor seeks changes to corporate
governance. Billionaire Loeb praised Baxter’s “willingness to
consider new directors.”
Loeb, whose firm has almost a 10 percent stake including
amassed options it’s converting into stock, applauded the
company for spinning off Baxalta and for announcing a succession
plan for Parkinson. Third Point, which oversees about $18
billion, said it has more than $2 billion in economic exposure
to Baxter.
“We look forward to bringing our experience to the board
and helping to select a new CEO,” Loeb wrote. “We believe
there are several external candidates with the requisite
industry experience, leadership skills, and track record of
creating shareholder value who could ably take the reins at
Baxter.”
Baxter should consider former Covidien Plc CEO Joe Almeida
to replace Parkinson, Bank of America Corp. analyst Bob Hopkins
said last week in a note.

Constructive Talks

Baxter expects to maintain constructive talks with Third
Point and plans to keep listening to all shareholders, the
company said in a statement.
Loeb described the structure of Baxter’s board as
“shareholder-unfriendly and archaic” because its staggered
terms for directors mean only a few are up for re-election each
year. He also criticized Baxter’s “odd voting structure that
values shareholders individually rather than according to
economic interest.” The rare structure implies small
shareholders have the same voting clout as the largest
investors, such as Third Point.
“We believe most shareholders agree with our views and as
it turns out, so do you,” he said, referring to talks with the
company.
Baxalta has rejected an unsolicited offer from Shire Plc to
acquire the company for $30 billion in stock. Baxter maintains a
19.5 percent stake in Baxalta, which the company has said could
help fund its pension, pay down debt and repurchase shares.

Earlier Targets

While most of Third Point’s investments aren’t based on an
activist strategy -- where the fund seeks to force management
and boards to make changes that boost shareholder returns --
it’s those campaigns that attract the most attention.
Loeb’s firm has actively targeted at least two other
health-care companies previously -- biotech giant Amgen Inc. and
cancer drugmaker Ligand Pharmaceuticals Inc. It has run
campaigns for changes at companies as diverse as Dow Chemical
Co., Sony Corp., CF Industries Holdings Inc. and Yahoo! Inc.
When Third Point takes an activist position, the firm often
seeks directorships alongside influence in CEO selection. Loeb
noted in Wednesday’s letter that “we have been deeply involved
in the hiring” of executives including Ligand’s John Higgins,
Yahoo’s Marissa Mayer and Sotheby’s Tad Smith.

For Related News and Information:
Shire Seeks to Lure Baxalta Into Talks With $30 Billion Bid
Top Stories: TOP <GO>

--With assistance from Anna Edney in Washington.

To contact the reporter on this story:
Beth Jinks in San Francisco at +1-415-617-7141 or
bjinks1@bloomberg.net
To contact the editors responsible for this story:
Jeffrey McCracken at +1-212-617-8517 or
jmccracken3@bloomberg.net
Crayton Harrison, Stephen West

(Citi) European Industrial Holding. : Opportunities on Hold!!!

* Sentiment on trading discount not yet bringing opportunities — Industrial
holding companies as potential investments boil down to three key elements:
performance of the underlying investments, dividend policy and the trading discount
to net assets. This last point is the most volatile, driven by the degree to which
underlying investment portfolios can be replicated and market sentiment. We
expand our coverage universe with the addition of Industrivarden and aim to identify
opportunities to play this under-explored space.

* Initiate coverage on Industrivarden with Sell — We initiate on Sweden-based
industrial holding company Industrivarden AB with a Sell rating and a price target of
SEK 155 per share. Based on a forecast 2015E dividend of SEK 6.75 per share and
a widening of its trading discount towards a long-term sector average of 20%
(currently 7%), we expect a 12-month total return of -6%.

* Remain Neutral on GBL — GBL is showing some positive signs that its strategy to
rebalance its portfolio is starting to come through. This could start to drive, finally, a
narrowing of its stubbornly-stable trading discount, but we feel it is still a bit too early
to build this into our valuation. We await its capital markets day on 24 September as
a possible catalyst, but retain our Neutral rating at this time.

* Remain Neutral on Investor — Investor has traded broadly flat since we reduced
its rating to Neutral in April and we maintain this Neutral view at current levels. We
assume that its trading discount will remain at a sector average 20% over the
coming 12 months, but referenced against our adjusted NAV estimate, which
includes ‘hidden value’ in its Molnlycke holding.

>>> GENL : Reports H1 Net $31.4M v $70.7M y/y; Rev $199.3m v $192.1M y/y

Reports H1 Net $31.4M v $70.7M y/y; Rev $199.3m v $192.1M y/y 

Outlook 
On 3 August 2015, the KRG issued a statement committing to pay contractors for oil exports on a sustainable basis from September 2015 The Company's 2015 guidance is reiterated:
- Production: 90-100,000 bopd
- Revenue: $350-400 million on a Brent oil price of $50/bbl
- Capital expenditure: $150-200 million