NYT : Disney Unveils Playmation, Toys That Play Back

Disney Unveils Playmation, Toys That Play Back


The new toy line, called Playmation, will include an Iron Man “repulsor” glove worn on the hand and forearm.

GLENDALE, Calif. – For more than two years, inside a Walt Disney laboratory built to resemble a child’s bedroom, grade schoolers have been secretly testing an at-home version of Iron Man’s high-tech armor.

Disney’s goal: Use wireless systems, motion sensors and wearable technology to strike a balance between what children want to do (tap screens and play video games) and what parents would prefer (more running around).

The Walt Disney Company unveiled a resulting toy line on Tuesday called Playmation, which will arrive in stores in October. For about $120, an “Avengers” theme starter pack will include a red Iron Man “repulsor” glove that players wear on their right hand and forearm and four smart toys, including two action figures.

Used together, the parts lead players on villain-destroying missions – run, duck, dodge, jump, shoot. A related app provides access to additional assignments and powers. “It’s physical play for a digital generation,” Thomas O. Staggs, Disney’s chief operating officer, said in an email.


The Playmation toys will include an Iron Skull villain "smart figure."
EMILY BERL FOR THE NEW YORK TIMES
Analysts who have had the opportunity to scrutinize Playmation said it could solve a puzzle that had largely stumped the traditional toy industry: What if toys could play back? The answer could ensure the relevancy of companies like Hasbro and Mattel – and Disney — to future generations of children.

“I see this as a breakthrough item, especially in the action and role-play aisle,” Jim Silver, the editor of TTPM, a toy review website, said in an interview. “What Disney has done here is so sophisticated that I actually don’t like the word ‘toy’ for it.”

This can be tricky terrain. Smart toy efforts tend to prompt swift and severe reactions from watchdog organizations, with privacy as a main concern. The latest example is Mattel’s new Internet-connected Hello Barbie, which records children’s speech, analyzes it and provides pertinent responses.

Campaign for a Commercial-Free Childhood, a Boston advocacy group, instantly deemed that toy “Eavesdropping Barbie” and began organizing parents against Mattel. The toymaker, whose profit fell 45 percent last year, in part because of declining interest in traditional Barbie products, has defended the digital doll, citing substantial privacy safeguards.

Mindful of this pitfall, Disney has “doggedly designed Playmation with privacy in mind,” said Kareem Daniel, senior vice president of strategy and business development for Disney Consumer Products. The Playmation components, for instance, are intentionally not tethered to an Internet connection during play, he said.

Disney is speeding ahead with the rollout of Playmation. “Star Wars” theme sets will arrive next year; prototypes shown last week to a reporter involved Jedi training and Darth Vader skulduggery. A “Frozen” version is scheduled for 2017. Aimed at children 6 to 12, the toys can also be worn by adults.

With a plethora of characters in the Disney stable and a flexible technology platform to tap into, “Playmation’s potential is tremendous,” Mr. Staggs said.

The core Playmation toys reveal a subtle but important shift at Disney Consumer Products, which has recently experienced rapid growth. (The unit generated $1.4 billion in operating profit last year, a 22 percent increase from 2013.) Disney traditionally has not designed its own toys but rather has licensed its characters to companies like Hasbro and Mattel.

But Playmation was created inside Disney, reflecting an attempt by the company to become more assertive in the creation of new toy categories and generate more growth. In success, Disney will also shut out competitors: Non-Disney characters will not be allowed into what the company is calling a “toy ecosystem.” (Sorry, Batman.)

Playmation has a few challenges. For starters, the line arrives during a management change at Disney Consumer Products. Bob Chapek, the executive who most ardently supported Playmation, was promoted in February to take over the company’s theme parks. His merchandising successor, Leslie Ferraro, has adopted Playmation, but her experience has been entirely in marketing.

In addition, only two people can have the full Playmation experience at one time, at least initially; that could frustrate children. Playmation works outdoors, but bright sunlight may interfere with certain motion sensor functions, according to Afsoun Yazdian, director of Playmation user experience and product management.

Depending on how Playmation is marketed, the toy line could also bump into Disney Infinity, a video game and toy product sold by a separate Disney division. To play Infinity, users collect character figurines, which resemble the Playmation action figures. Infinity 3.0, focused on “Star Wars” and costing a cheaper $65 for the starter set, will also arrive in stores in the fall. (Disney said it saw no threat of cannibalization.)

Still, toy analysts said they were encouraged by the depth of Playmation. The “Avengers” set comes with 25 missions out of the box. Disney will also sell add-on Playmation toys – Hulk hands, various action figures – starting around $15 each.

“I don’t think this is something that kids are going to play once and forget about,” Mr. Silver said.

NYT : Tisney Unveils Playmation, Toys That Play Back

Disney Unveils Playmation, Toys That Play Back


The new toy line, called Playmation, will include an Iron Man “repulsor” glove worn on the hand and forearm.

GLENDALE, Calif. – For more than two years, inside a Walt Disney laboratory built to resemble a child’s bedroom, grade schoolers have been secretly testing an at-home version of Iron Man’s high-tech armor.

Disney’s goal: Use wireless systems, motion sensors and wearable technology to strike a balance between what children want to do (tap screens and play video games) and what parents would prefer (more running around).

The Walt Disney Company unveiled a resulting toy line on Tuesday called Playmation, which will arrive in stores in October. For about $120, an “Avengers” theme starter pack will include a red Iron Man “repulsor” glove that players wear on their right hand and forearm and four smart toys, including two action figures.

Used together, the parts lead players on villain-destroying missions – run, duck, dodge, jump, shoot. A related app provides access to additional assignments and powers. “It’s physical play for a digital generation,” Thomas O. Staggs, Disney’s chief operating officer, said in an email.


The Playmation toys will include an Iron Skull villain "smart figure."
EMILY BERL FOR THE NEW YORK TIMES
Analysts who have had the opportunity to scrutinize Playmation said it could solve a puzzle that had largely stumped the traditional toy industry: What if toys could play back? The answer could ensure the relevancy of companies like Hasbro and Mattel – and Disney — to future generations of children.

“I see this as a breakthrough item, especially in the action and role-play aisle,” Jim Silver, the editor of TTPM, a toy review website, said in an interview. “What Disney has done here is so sophisticated that I actually don’t like the word ‘toy’ for it.”

This can be tricky terrain. Smart toy efforts tend to prompt swift and severe reactions from watchdog organizations, with privacy as a main concern. The latest example is Mattel’s new Internet-connected Hello Barbie, which records children’s speech, analyzes it and provides pertinent responses.

Campaign for a Commercial-Free Childhood, a Boston advocacy group, instantly deemed that toy “Eavesdropping Barbie” and began organizing parents against Mattel. The toymaker, whose profit fell 45 percent last year, in part because of declining interest in traditional Barbie products, has defended the digital doll, citing substantial privacy safeguards.

Mindful of this pitfall, Disney has “doggedly designed Playmation with privacy in mind,” said Kareem Daniel, senior vice president of strategy and business development for Disney Consumer Products. The Playmation components, for instance, are intentionally not tethered to an Internet connection during play, he said.

Disney is speeding ahead with the rollout of Playmation. “Star Wars” theme sets will arrive next year; prototypes shown last week to a reporter involved Jedi training and Darth Vader skulduggery. A “Frozen” version is scheduled for 2017. Aimed at children 6 to 12, the toys can also be worn by adults.

With a plethora of characters in the Disney stable and a flexible technology platform to tap into, “Playmation’s potential is tremendous,” Mr. Staggs said.

The core Playmation toys reveal a subtle but important shift at Disney Consumer Products, which has recently experienced rapid growth. (The unit generated $1.4 billion in operating profit last year, a 22 percent increase from 2013.) Disney traditionally has not designed its own toys but rather has licensed its characters to companies like Hasbro and Mattel.

But Playmation was created inside Disney, reflecting an attempt by the company to become more assertive in the creation of new toy categories and generate more growth. In success, Disney will also shut out competitors: Non-Disney characters will not be allowed into what the company is calling a “toy ecosystem.” (Sorry, Batman.)

Playmation has a few challenges. For starters, the line arrives during a management change at Disney Consumer Products. Bob Chapek, the executive who most ardently supported Playmation, was promoted in February to take over the company’s theme parks. His merchandising successor, Leslie Ferraro, has adopted Playmation, but her experience has been entirely in marketing.

In addition, only two people can have the full Playmation experience at one time, at least initially; that could frustrate children. Playmation works outdoors, but bright sunlight may interfere with certain motion sensor functions, according to Afsoun Yazdian, director of Playmation user experience and product management.

Depending on how Playmation is marketed, the toy line could also bump into Disney Infinity, a video game and toy product sold by a separate Disney division. To play Infinity, users collect character figurines, which resemble the Playmation action figures. Infinity 3.0, focused on “Star Wars” and costing a cheaper $65 for the starter set, will also arrive in stores in the fall. (Disney said it saw no threat of cannibalization.)

Still, toy analysts said they were encouraged by the depth of Playmation. The “Avengers” set comes with 25 missions out of the box. Disney will also sell add-on Playmation toys – Hulk hands, various action figures – starting around $15 each.

“I don’t think this is something that kids are going to play once and forget about,” Mr. Silver said.

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WSJ : Sepp Blatter to Resign as FIFA President

Sepp Blatter to Resign as FIFA President
‘It’s great news for football,’ says chief of British football federation

FIFA President Sepp Blatter said on Tuesday that he will step down as the head of world soccer’s governing body, in the wake of the disclosure last week of U.S. criminal charges against more than a dozen current and former FIFA officials and sports-marketing executives.

Mr. Blatter, who was re-elected on Friday to a fifth term by FIFA’s 209 national associations, said in a news conference that despite the poll, his re-election wasn’t embraced by many and that he would relinquish his role after an extraordinary congress of the organization.

Mr. Blatter’s announcement, which was hailed by many soccer fans and officials around the world, came six days after Swiss law-enforcement officials raided a Zurich hotel and arrested several soccer officials there to attend FIFA’s annual meeting. The arrests were linked to a U.S. indictment of more than a dozen current and former FIFA officials and other executives accused of complicity in alleged corruption over more than two decades.

After his re-election, Mr. Blatter defiantly vowed to lead a renaissance of the body, tarnished by the latest scandal and by years of allegations of corruption and abuse of power.

In a brief, terse appearance on Tuesday, he changed gears.

“What counts most to me is the institution,” Mr. Blatter said, after announcing his plans to step down.

Mr. Blatter has served as president of world soccer’s governing body since 1998, weathering a series of controversies and scandals, including the awarding of the 2022 World Cup to Qatar, a country with scant soccer experience or infrastructure.

While Mr. Blatter had faced down pressure before, in the last week there have been unprecedented calls for boycotts of the World Cup and the creation of a competing event that would include countries in the Americas and Europe that supported Mr. Blatter’s opponent, Jordan’s Prince Ali bin al Hussein, in last week’s election. Mr. Blatter faced the prospect of becoming the man responsible for the collapse of the world’s most popular sporting event.

The U.S. Justice Department didn’t name Mr. Blatter in its indictment of 14 individuals last week. The acting head of the U.S. attorney’s office in Brooklyn, which is leading the case, said last week’s arrests in Zurich marked the “beginning” of the effort rather than the end.

Prosecutors are expected to enter a second stage of the probe as they work to extradite some of the arrested defendants and try to persuade them to give information to help the U.S. pursue others, according to law-enforcement officials.

Prosecutors described more than two dozen unnamed co-conspirators in last week’s indictment, ranging from several characterized as “a high-ranking official of FIFA,” to multiple executives at three unnamed sports marketing companies. U.S. law-enforcement officials said Jérôme Valcke, FIFA’s general secretary, authorized $10 million in payments from FIFA bank accounts to a Caribbean soccer federation in 2008. The indictment alleges those funds ultimately served as bribes to buy votes for South Africa’s selection to host the 2010 World Cup.

The U.S. indictment has set off a cascade of other legal actions. Swiss authorities are investigating possible bribery in the selection of Russia and Qatar as World Cup hosts. On Tuesday Brazil’s Federal Police asked the country’s prosecutors to indict the former head of the Brazilian soccer confederation, Ricardo Teixeira, as well as Sandro Rosell, the former president of FC Barcelona, one of the world’s most popular soccer clubs.


The allegations against Mr. Teixeira include money laundering and tax evasion, according to a person close to the investigation, who said Mr. Rosell faced allegations of presenting false documents and concealing information. Neither Mr. Teixeira nor Mr. Rosell, nor representatives of either man, could be immediately reached to comment.

FIFA statutes require at least four months before a new election can be held. The body’s 24-member executive committee will schedule a vote between December and March, Mr. Blatter said, adding he would remain in office in the interim.

The head of FIFA’s audit and compliance committee, Domenico Scala, taking the microphone after Mr. Blatter announced his decision to step down, said the group would embark on a wide-ranging reform effort in the wake of the scandal.

“Now it is the time for FIFA to move forward,” Mr. Scala said. “There is significant work to be done in order to regain the trust of the public and to fundamentally reform the way people see FIFA.”

Mr. Blatter’s departure will mark the end of a long, formative chapter of FIFA’s history. A former watch executive and general secretary of the Swiss Ice Hockey Federation, he joined FIFA in 1975 as technical director, working alongside the man who would be his mentor, FIFA President João Havelange of Brazil.

Mr. Blatter spent the next two decades forging ties with member associations all over the world. He understood that the game’s global popularity—and the reach of FIFA’s jewel, the World Cup—was transforming its power structure.

In 1998, Mr. Blatter beat the president of the European soccer confederation in the election for FIFA’s top job, buoyed by support from Africa, South America and other parts of the developing world.

Mr. Blatter immediately set about building FIFA’s biggest financial assistance mechanisms. Today, nearly every association on the planet, from Canada to Fiji, can count on at least $500,000 a year in direct funding from FIFA.

Mr. Blatter also oversaw the growth of the World Cup into a multibillion-dollar cash cow and the primary source of FIFA’s revenue. During the 2011-14 cycle, it generated $5.72 billion of revenue, according to FIFA’s most recently published financial results. The Swiss-based nonprofit is also sitting on $1.52 billion of cash reserves.


Throughout the growth however, FIFA was plagued by scandal, especially since December 2010, when FIFA’s executive committee stunned the world and voted to give hosting rights to the 2022 World Cup to the tiny emirate Qatar over the U.S., Japan and Australia, despite summertime temperatures of 120 degrees.

Reactions to Mr. Blatter’s announcement poured in from around the world.

“It was a difficult decision, a brave decision, and the right decision,” said Michel Platini, head of the Union of European Football Associations and a vocal critic of Mr. Blatter.

“The announcement today is a positive step for the good of sport, football and its fans,” Coca-Cola, a long-time FIFA sponsor, said. “We believe this decision will help FIFA transform itself rapidly into a much-needed 21st century structure and institution.’’ Adidas AG, another key sponsor, said it “welcomes FIFA’s commitment to change.”

U.S. Soccer President Sunil Gulati, a member of FIFA’s executive committee who opposed Mr. Blatter’s re-election, called the announcement an “exceptional and immediate opportunity for positive change within FIFA.I commend him for making a decision that puts FIFA and the sport we love above all other interests.”

“Today is an occasion for optimism and belief for everyone who shares a passion for our game,” Mr. Gulati added.

German Justice Minister Heiko Maas, who spoke out in recent days urging Mr. Blatter to resign, said Tuesday’s move “can only be a first step toward clearing things up and starting anew.”

“Fans should no longer pay for the FIFA quagmire,” Mr. Maas said on Twitter.

Greg Dyke, chairman of the Football Association, the governing body for soccer in England, told the BBC Mr. Blatter’s resignation was “great news” and long overdue.

“Clearly there is something that has come out of the events of last week that has made Mr. Blatter stand down, and one can only assume that is to do with the investigation either by the Swiss justice authorities or by the attorney general of America,” Mr. Dyke said.

“But if you’re in football, forget that—he’s gone, we’re going to get someone else, and at long last we can sort out FIFA,” he said. “We can go back to look at those two world cups. If I was in Qatar today I wouldn’t be feeling too confident.”

Reuters - Hedge funds to Macy's: Sell your real estate

Hedge funds to Macy's: Sell your real estate  http://reut.rs/1FSkijx

Several hedge funds have asked U.S. department store company Macy's Inc (M.N) to consider options for its real estate, including selling some major sites and then leasing them back, according to several sources close to the matter.

The push is in line with real estate decisions by some other major retailers that have been beneficial to their stock prices.

Hudson's Bay Co (HBC.TO), the parent of Lord and Taylor and Saks Inc, said in February it would form two real estate joint ventures, paving the way for it to sell some of its property assets. Shares of Hudson's Bay have risen almost 50 percent over the last 12 months.


Sears Holdings Corp (SHLD.O) also said in April it plans to spin off 254 stores into a real estate investment trust next month, which it estimates will raise $2.5 billion and alleviate some liquidity concerns. Shares of Sears are up 27 percent since the beginning of the year, providing a much needed boost to a retailer that has lost $7 billion over the last four years.

These moves have emboldened several hedge funds to buy stakes in Macy's in recent months and hold conversations with management about following a similar strategy, the sources said.

Macy's and its financial advisers are listening to the ideas of its shareholders, the sources said.

The company, though, remains more interested in trimming its real estate portfolio at the margins, as it did last year when it sold its Sunnyvale and Cupertino locations in Northern California, they added.

Macy's management believes that pursuing a sale-leaseback strategy in which it would sell its retail space and then rent it back would burden it with significant lease expenses that would erode its profitability and weaken its finances, according to three of the sources.

A Macy’s spokesman said in an emailed statement: "We look at all of our stores so we can get the best economic and operational equation in each location. We analyze each store's situation and are always looking to maximize the value of the company."

CROWN JEWELS

Some investors have suggested that Macy's sell its best-known asset, its flagship Herald Square location in New York, to raise cash so that it can pay a higher dividend to shareholders or buy back shares. Hudson's Bay mortgaged the land beneath Saks' 5th Avenue flagship store in Manhattan for $3.7 billion in 2014. The Canadian retail group paid $2.9 billion for all of Saks in 2013.

However, such a move is highly unlikely as Herald Square is one of New York’s top tourist attractions and a large part of Macy’s identity and brand, the sources said.

Macy’s Thanksgiving Day Parade has also appeared in movies from Miracle on 34th Street to TV show Seinfeld. The building was added to the National Register of Historic Places as a National Historic Landmark in 1978.

A number of prominent hedge funds have recently acquired stakes, though it is unclear which have approached Macy’s management with real estate proposals.

David Einhorn's Greenlight Capital Inc bought 1.7 million shares in Macy's in the first quarter, although the position is expected to remain passive, a source close to the matter said.

Hedge fund Jana Partners LLC, which often takes activist positions in companies, has also traded in Macy's stock in the past few months, according to people familiar with the matter. Greenlight and Jana declined to comment.

Macy's is no stranger to activist investors shopping for hidden value. Carl Icahn took a large position in Macy’s then parent company Federated Department Stores Inc in 2006. Icahn pushed for the company to unlock its real estate value, but ended up exiting the stock several months later.

During Macy's first quarter earnings call on May 13, Chief Financial Officer Karen Hoguet addressed the company's real estate strategy, suggesting that some estimates valuing its assets have been done "over simplistically." According to its last annual report, Macy's property has a book value of $7.8 billion. Macy's owns 447 of its 823 stores as well as several offices.

"We are studying closely with our key banking partners all the various transactions that have happened lately and all the possible strategies, the pros, the cons of how you would do it, etc., etc., to see what is right for us,” Hoguet said on the call.

Shares of Macy's, which have risen around 11 percent over the last 12 months, are slightly below the broader S&P Retail index over the same period. The company boosted its dividend by 15 percent to 36 cents during the first quarter of 2015 which is the fifth dividend increase in the past four years. During the quarter, Macy’s also increased its share repurchase program by $1.5 billion.

In the past seven years, shares of Macy’s have risen 280 percent under long term CEO Terry Lundgren’s watch. Both Lundgren and the Macy's board, which includes former Hilton CEO Stephen Bollenbach, are highly regarded in the retail industry, the sources said.

Meanwhile, other activists that have sought to effect major structural change within large retailers have been thwarted or suffered losses. Pershing Square Management's Bill Ackman failed to convince Target Corp (TGT.N) to shed its stores into a real estate investment. Ackman also stepped off the J.C. Penney (JCP.N) board in 2013 after an unsuccessful two-year attempt to remake the department store into an upscale retail chain.

>>> Shire could finance another multi-billion dollar acquisition - CFO

Deal Reporter

Shire could finance another multi-billion dollar acquisition - CFO

Shire (NASDAQ:SHPG), a specialty pharmaceuticals maker, could easily finance another multi-billion dollar acquisition and still maintain its investment grade credit rating, CFO Jeff Poulton said.

Dublin, Ireland-based Shire, which in January agreed to buy NPS Pharmaceuticals for USD 4.9bn in a bid to expand its rare diseases treatment portfolio, posted net debt of about USD 2.6bn at the end of the first quarter, giving it a debt-to-Ebitda ratio of 1x, Poulton told this news service.

“To maintain an investment grade rating, which is what we’d like to do, you could go up to 3x to 4x,” said Poulton, speaking after a presentation at the Jefferies Global Healthcare conference in New York on Tuesday. “So there is capacity to do larger deals, but that’s not what we’re focused on.”

Shire, which sells medicines to treat attention deficit disorder among other medications, has a business strategy that emphasizes acquisitions more than developing its own drugs. As such, it is always viewed as a potential acquirer of assets, particularly in the so-called “orphan” drug space and assets that can expand the breadth of is product portfolio.

Poulton said that with a wave of acquisitions in the orphan drug space, including that of NPS, Synageva, and Prosensa, there are fewer larger targets left in that market. However, Poulton said there are a plethora of acquisition opportunities among smaller drugmakers.

“We’re not under pressure to do deals,” said Poulton. “If we don’t see deals that make sense we may not do deals. But if we can find the right kinds of deals given our business model, you will continue to see us do deals.”

Poulton, in a presentation to investors, said size is not a driving factor for deals but rather a strategic fit. “We are looking closely at a lot of things in the rare diseases space,” he said.

Some areas of potential interest for Shire include gastrointestinal, ADHD and opthamology medications, he said. The company has invested around USD 100m in drug research and development, which is “not enough to sustain its organizational growth rate,” he said.

>>> US Close Dow-0.16% S&P-0.10% Nasdaq-0.13% Russell+0.17%


Closing Market Summary: Stocks End Flat on Light Volume


The stock market registered a slim loss on Tuesday, making for a near carbon copy of yesterday's affair with the S&P 500 shedding 0.1%.

Equities faced some selling pressure at the start after the overnight session was filled with more speculation about Greece's future in the eurozone. Last night, leaders from France, Germany, and EU met to draft a proposal for Greek representatives, but Greek leaders prepared a version of their own. That being said, it remains unclear if either version will be deemed acceptable by both sides.

With Greece in limbo for at least another day, a short squeeze in the euro sent the single currency higher by 2.0% against the dollar to 1.1145. Contributing to the euro strength was some chatter that the European Central Bank could stop its quantitative easing program early due to inflationary pressures. To that point, eurozone CPI rose 0.3% year-over-year in May (expected 0.2%) while core CPI increased 0.9% (consensus 0.7%). Germany's 10-yr bund tumbled in response, sending its yield higher by 17 basis points to 0.72%.

Similarly, the U.S. 10-yr note retreated overnight and continued backtracking into the afternoon. The benchmark note settled just above its worst level of the day with its yield higher by eight basis points at 2.26%.

As for stocks, the S&P 500 found early support in the neighborhood of its 50-day moving average (2,100) and returned to its flat line shortly after noon ET. In all likelihood, some of the money leaving Treasuries found its way into stocks, but the benchmark index could not stay above its unchanged level into the close.

Five sectors registered gains with all coming from the cyclical side; however, the top-weighted technology sector (-0.3%) could not keep pace with the market. High-beta chipmakers were largely responsible for the weakness, evidenced by a 1.2% decline in the PHLX Semiconductor Index. Despite today's retreat, the index remains higher by 6.0% so far in Q2. Meanwhile, large cap tech names were mixed with Apple (AAPL 129.96, -0.58) and Microsoft (MSFT 46.92, -0.31) losing close to 0.5% apiece while Google (GOOGL 553.95, +4.74) and Facebook (FB 80.44, +0.15) advanced.

Similar to technology, the health care sector (-0.6%) acted as a lead blanket, limiting the rebound's strength. Large cap components fueled the weakness while biotechnology also struggled with iShares Nasdaq Biotechnology ETF (IBB 363.46, -1.35) sliding 0.4%.

On the upside, energy (+0.5%) and materials (+0.3%) outperformed throughout the day while consumer discretionary (+0.2%), financials (+0.2%), and industrials (+0.2%) also registered gains.

The energy sector was supported by a rally in crude oil, which climbed 1.7% to $61.28/bbl. Conversely, the energy component benefitted from a 1.5% decline in the Dollar Index (95.96, -1.43).

Today's participation was an improvement from yesterday, but that was a small victory considering only 712 million shares changed hands at the NYSE floor.

Economic data was limited to the Factory Orders report for April, which showed a 0.4% decline while the Briefing.com consensus expected a flat reading. April marked the eighth monthly decline in factory orders over the last nine months. Furthermore, durable goods orders were revised down from the -0.5% reported in the advance release to -1.0%.

Excluding transportation, durable goods orders declined 0.2% in April, which was down from a 0.5% gain that was originally reported in the advance data, and more in-line with the weak readings from the April regional manufacturing surveys.

Tomorrow, the weekly MBA Mortgage Index will be released at 7:00 ET while the May ADP Employment Change will be reported at 8:15 ET (consensus 200K). The April Trade Balance (consensus -$44.00 billion) and May ISM Services (consensus 57.1) will be released at 8:30 ET and 10:00 ET, respectively, while the Fed's June Beige Book will cross the wires at 14:00 ET.
  • Nasdaq Composite +7.2% YTD 
  • Russell 2000 +3.9% YTD 
  • S&P 500 +2.5% YTD 
  • Dow Jones Industrial Average +1.1% YTD

(BN) Monsanto, Syngenta Said to Discuss Regulatory Hurdles to Deal


Monsanto, Syngenta Said to Discuss Regulatory Hurdles to Deal
2015-06-02 20:50:41.933 GMT


By Ed Hammond, Aaron Kirchfeld and Jeffrey McCracken
(Bloomberg) -- Monsanto Co., the world’s largest seed
company, is quietly working with Syngenta AG to iron out
regulatory concerns that could stymie its proposed takeover of
its Swiss rival, people with knowledge of the situation said.
Antitrust lawyers for the two companies are discussing how
to address regulatory hurdles that would arise from the
combination, said the people, who asked not to be identified
because the talks are private. The efforts don’t guarantee that
Monsanto will raise its offer or that an agreement will be
reached, the people said.
Syngenta would consider entering formal negotiations if
Monsanto sufficiently raises its offer and provides a
multibillion-dollar termination fee to compensate for the risks
of completing a deal, said the people.
The Swiss firm considers something around 10 percent of the
purchase price, which would amount to $4.5 billion at the
current bid, as reasonable, one of the people said, though no
concrete amount has been set. That type of fee is usually 3
percent to 5 percent of the offer price.
A spokesman for St. Louis-based Monsanto declined to
comment on the talks, while a representative for Basel,
Switzerland-based Syngenta declined to comment on speculation.
Syngenta, which snubbed Monsanto’s offer of 449 francs a
share because it deemed it too low and the execution risk too
high, may be willing to consider a bid of at least 500 francs a
share, a person familiar with the matter said last week.

More Cash

The Swiss company would also like Monsanto to increase the
portion of cash versus stock in the offer to minimize the risk
of the U.S. company’s shares declining in value as they seek
approval for the deal, one of the people said. Monsanto’s
proposal offered 45 percent in cash, according to a Syngenta
statement last month.
Syngenta is of the opinion that Monsanto is underestimating
the raft of competitive, social and political opposition from
regulators, politicians and farmers to a deal to merge the
world’s top genetically modified crop supplier with the No. 1
agrochemical maker, the people said.
Monsanto has said publicly that it would sell Syngenta’s
conventional and genetically modified seed businesses were it to
succeed in its takeover. Selling the seeds unit plus some
herbicide businesses could generate $8 billion, according to a
note from Deutsche Bank AG.

For Related News and Information:
Monsanto Says Deal Would Mean Sale of Syngenta Seed Unit
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Elizabeth Wollman, Simon Casey

>>> MOS - Discloses outlook for agriculture, Phosphate, and Potash - CSX fertili

Discloses outlook for agriculture, Phosphate, and Potash - CSX fertilizer forum presentation 

- Agriculture outlook
Near term: Mother Nature's call, Long term: Food story is still solidly intact

- Phosphate outlook
- Near term: steady demand growth but significant supply losses
- long term: a new supply ballgame

- Potash outlook
- near term: demand growth is back on track and making up for lost time/tonnage
- long term: overblown concerns about current and future capacity

>>> Bouygues - Stock -7.8% since recent Highs (19/05) - on support now

Bouygues has been trading down for teh last 2 weeks, underperforming mkt by more than 7%...

- Altice developments with Suddenlink, TWC, and maybe verizon wireless now put some pressure on the name, forcing some investors to think that Bouygues Telecom bid won't come soon...
- Macron comments on sector in France and the need for operators to invest, were not seen as positive also...
- Construction performed quite well on this period so really think that's clearly because of telco tha th stock underperformed...
- Spie IPO could also be a factor for the stock to underperform as anothe pure play in the construction sector will be available...

I still believe that regarding the potential synergies that could be done between numericable and Bouygues telecom, Altice is still interested in doing a deal...not sure that Martin Bouygues wiull continue to invest heavily in telco sector and if he doesn't he will destroy some value and burn a lot of cash

I have been pushing the stock few days ago and will continue to buy some here, if webreak these support, stock could rrade down to 34.3 levels...