(The Economist) Putin’s war on the West

As Ukraine suffers, it is time to recognise the gravity of the Russian threat—and to counter it

HE IS ridiculed for his mendacity and ostracised by his peers. He presides over a free-falling currency and a rapidly shrinking economy. International sanctions stop his kleptocratic friends from holidaying in their ill-gotten Mediterranean villas. Judged against the objectives Vladimir Putin purported to set on inheriting Russia’s presidency 15 years ago—prosperity, the rule of law, westward integration—regarding him as a success might seem bleakly comical.

But those are no longer his goals, if they ever really were. Look at the world from his perspective, and Mr Putin is winning. For all his enemies’ machinations, he remains the Kremlin’s undisputed master. He has a throttlehold on Ukraine, a grip this week’s brittle agreement in Minsk has not eased. Domesticating Ukraine through his routine tactics of threats and bribery was his first preference, but the invasion has had side benefits. It has demonstrated the costs of insubordination to Russians; and, since he thinks Ukraine’s government is merely a puppet of the West (the supposed will of its people being, to his ultracynical mind, merely a cover for Western intrigues), the conflict has usefully shown who is boss in Russia’s backyard. Best of all, it has sown discord among Mr Putin’s adversaries: among Europeans, and between them and America.

His overarching aim is to divide and neuter that alliance, fracture its collective approach to security, and resist and roll back its advances. From his tantrums over the Middle East to his invasion of Georgia and multiple misadventures in Ukraine, Mr Putin has sometimes seemed to stumble into accidental disputes with the West, driven by a paranoid fear of encirclement. In hindsight it seems that, given his outlook, confrontation may have been inevitable. Either way, the contest he insists on can no longer be dodged. It did not begin in poor Ukraine and will not end there. Prevailing will require far more resolve than Western leaders have so far mustered.

What the Kremlin wants
Last year Mr Putin lopped off Crimea, redrawing Europe’s map by force. The war he hallucinated into reality in eastern Ukraine has killed thousands. Even if the ceasefire scheduled for February 15th holds (unlikely, on past form), he seems certain to get what he wants there: a wretched little quasi-state in the Donbas, which he can use to stall and warp Ukraine’s development. Yet these incursions are only his latest bid to bludgeon former Soviet states into submission, whether through energy blackmail, trade embargoes or war. For Mr Putin the only good neighbour is a weak one; vassals are better than allies. Only the wilfully blind would think his revanchism has been sated. Sooner or later it may encompass the Baltic states—members of both the European Union and NATO, and home to Russian minorities of the kind he pledges to “protect”.

The EU and NATO are Mr Putin’s ultimate targets. To him, Western institutions and values are more threatening than armies. He wants to halt their spread, corrode them from within and, at least on the West’s fragile periphery, supplant them with his own model of governance. In that model, nation-states trump alliances, states are dominated by elites, and those elites can be bought. Here, too, he has enjoyed some success. From France to Greece to Hungary he is cultivating parties on Europe’s far right and left: anyone who might lobby for Russian interests in the EU, or even help to prise the union apart (see article). The biggest target is NATO’s commitment to mutual self-defence. Discredit that—by, for example, staging a pro-Russian uprising in Estonia or Latvia, which other NATO members decline to help quell—and the alliance crumbles.

Mr Putin’s stranglehold on his own country means he has time and freedom for this campaign. As he has amply demonstrated, he has no qualms about sacrificing Russians’ well-being to satisfy his coterie’s greed or to further his geopolitical schemes. He persecutes those who protest. And in the echo chamber his propaganda creates, the nationalism he peddles as a consolation for domestic woes is flourishing.

What is to be done?
The first task for the West is to recognise the problem. Barack Obama has blithely regarded Russia as an awkward regional power, prone to post-imperial spasms but essentially declining. Historians will be amazed that, with Ukraine aflame, the West was still debating whether to eject Russia from the G8. To paraphrase Trotsky, Western leaders may not have been interested in Mr Putin, but Mr Putin was interested in them.

The next step is to craft a response as supple as the onslaught. Part of the trouble is that Mr Putin plays by different rules; indeed, for him, there are no inviolable rules, nor universal values, nor even cast-iron facts (such as who shot down flight MH17). There are only interests. His Russia has graduated from harassing ambassadors and assassinating critics to invasions. This is one of his assets: a readiness to stoop to methods the West cannot emulate without sullying itself.

The current version of this quandary is whether, if the latest ceasefire fails, to arm Ukraine. Proponents think defensive weapons would inflict a cost on Mr Putin for fighting on. But anyone who doubts his tolerance of mass casualties should recall his war in Chechnya. If arms really are to deter him, the West must be united and ready to match his inevitable escalation with still more powerful weapons (along, eventually, with personnel to operate them). Yet the alliance is split over the idea. Mr Putin portrays the war as a Western provocation: arming Ukraine would turn that from fantasy to something like fact, while letting him expose the limits of Western unity and its lack of resolve—prizes he cherishes. If fresh Russian aggression galvanises the alliance, arming Ukraine will become a more potent threat. Until that point, it would backfire.

A better strategy is to eschew his methods and rely on an asset that he, in turn, cannot match: a way of life that people covet. If that seems wishy-washy beside his tanks, remember that the crisis began with Ukrainians’ desire to tilt towards the EU—and Mr Putin’s determination to stop them. Better than arms, the West must urgently give Ukraine as much aid as it needs to build a state and realise that dream (and as much advice as it takes to ensure the cash is not misspent or stolen). The IMF deal announced on February 12th should be only a start. Mr Putin wants Ukraine to be a lesson in the perils of leaning West. It should instead be an exemplar of the rewards.

Just as urgently, those former Soviet countries that have joined Western institutions must be buttressed and reassured. If the case for sending arms to the Donbas is doubtful, that for basing NATO troops in the Baltics is overwhelming, however loudly Mr Putin squeals. Western leaders must make it clear, to him and their own people, that they will defend their allies, and the alliance—even if the struggle is covert and murky.

And it isn’t only its allies who appreciate the West’s virtues. So do many Russians, including shameless Putinists who denounce the West’s decadence but exploit its schools and stockmarkets. It is long past time for every Russian parliamentarian and senior official to join the sanctions list. Far from being relaxed as, after Minsk, fellow-travellers may suggest, sanctions must be tightened—and sanctions-busting curtailed (see article). In the end, they will prove a stronger lever than weapons.

At the same time, the West should use every available means to help ordinary Russians, including Russian-sympathisers in the Baltics and Ukraine, learn the bloody, venal truth about Mr Putin. It should let them know that Russia, a great nation dragged down a terrible path, will be embraced when it has rulers who treat the world, and their own people, with respect not contempt, however long that takes.

The Economist : Why eating chocolate is good for you

For lots of people there is little doubt about the deliciousness of chocolate. But its health benefits are less clear. Chocolate has been implicated in causing a litany of problems including acne and obesity. In large enough quantities it even has the potential to poison people. But in recent years a slew of studies have found that eating small amounts of the right kind of chocolate can actually be healthy. Why? The short answer lies in the chemistry of chocolate.
First, cocoa beans are packed with flavonoids which are natural antioxidants. One in particular, called epicatechin, seems especially effective in helping the body get rid of free-radicals, which may help preserve cell membranes and ward off cardiovascular disease. But flavanoids degrade quickly when heated or processed and are often removed from commercial chocolate because they taste bitter. So only raw cocoa and, to a lesser extent, dark chocolate, offer these benefits.
Second, cocoa contains a stimulant called theobromine which has some positive health effects. Theobromine has a very similar molecular structure to caffeine. But while caffeine’s effects are more prominent in the central nervous system, one of theobromine's well-known effects is on the heart. By increasing the heartbeat and dilating blood vessels, it can lower blood pressure. It may also boost ‘good’ rather than ‘bad’ cholesterol and stop plaque building up on artery walls. Theobromine can even help alleviate symptoms of asthma because it helps relax the body’s smooth muscle, such as that found in the lungs. Some studies suggest it is better at suppressing coughs than codeine. Last and perhaps most surprising of all, chocolate may fight tooth decay more effectively than fluoride. Theobromine appears to help with repairing enamel and protecting teeth from further erosion by acids.
For all these benefits, there is a dark side to chocolate. In rare cases eating too much chocolate can lead to theobromine poisoning which can be lethal - but more often causes nausea, trembling, or headaches.The danger is even more acute for animals. Small dogs, for example, can die from eating as little as 100g of milk chocolate. This is because their bodies can’t metabolise theobromine quickly enough. Last year four bears were found dead in New Hampshire after demolishing 90 pounds of chocolate and junk food – all four died of heart attacks. Despite this, for most people the occasional piece of chocolate remains a safe and even healthy pleasure.

>>> Aer Lingus - Issues update on offer; terms of revised proposal are in the be

Issues update on offer; terms of revised proposal are in the best interests of shareholders 

- there is compelling logic to a combination with IAG

- On 27 January 2015, the Board of Directors of Aer Lingus (the "Board") announced that it had indicated to International Consolidated Airlines Group, S.A. ("IAG") that the financial terms of IAG's proposal (the "Revised Proposal") valuing each Aer Lingus share at €2.55 (comprising a cash offer of €2.50 and a dividend of €0.05 per share) were at a level that the Board would be willing to recommend, subject to being satisfied with the manner in which IAG proposed to address the interests of relevant parties. The Board continues to believe that the financial terms of the Revised Proposal are in the best interests of Aer Lingus' shareholders.

- The Revised Proposal remains conditional on, amongst other things, confirmatory due diligence, the recommendation of the Board of Aer Lingus and the receipt of irrevocable commitments from Ryanair Limited and the Minister for Finance of Ireland to accept the offer, all of which may be waived in whole or in part by IAG.

>>> Afren - AFR LN - Talks regarding an offer have ended - More Details

Talks regarding an offer from Seplat have ended 

- Received a highly preliminary approach from SEPLAT Petroleum Development Company plc ("Seplat") regarding a possible combination with Afren.

In accordance with Rule 2.6(a) of the UK Takeover Code (the "Code"), and further to Afren's announcement on 30 January 2015, Seplat was required, by not later than 5.00 p.m. on 13 February 2015 (the "Deadline"), to either announce a firm intention to make an offer for Afren under Rule 2.7 of the Code or announce that it does not intend to make an offer for Afren, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. Seplat has requested an extension to the Deadline.

- The Board has not received any proposal from Seplat that it believes is capable of being implemented on terms satisfactory to all relevant stakeholders in the Company, including the indicated value being significantly below the aggregate value of the debt of the Company. 

- Board has concluded that continuing discussions with Seplat is not in the best interests of the Company's stakeholders and will not agree to Seplat's request for an extension of the Deadline

- Company is also having discussions with its existing stakeholders and new third party investors regarding recapitalising the Company.
From: LAURENT CHEKROUN (MAKOR SECURITIES LLP) At: Feb 13 2015 14:58:27
Subject: >>> AFren - AFR LN - Talks regarding an offer have ended - sources
-10%

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance
: KN -21%, ZNGA -12.4%, MGI -5.2%, CAG -3.6%, SCOK -3.6%, SFLY -3.2%, IMI -3.2%, CPB -3.2%, (guides Q2, FY15 EPS below consensus, rev in-line), HOLI -3.1%, SYMX -3%, GRPN -2%, AIG -1.8%, KRFT -1.8%, (announces George Zoghbi as new COO ), SSNC -1.6%, TSU -1.6%, DLR -0.9%, TNGO -0.5%

Select airline related names showing weakness: ALK -1.2%, LUV -1.1%, GOL -1%, DAL -0.7%, AAL -0.5%

Other news: MX -49.4% (co completed the restatement of its financial filings), PRAN -20.1% (FDA has issued a partial clinical hold letter for PBT2), BLDP -5.5% (pulling back following recent strength), SDRL -2.7% (provides update on Petrobras (PBR) contracts), IDRA -2.4% (attributed to pricing of secondary), ARMH -1.9% (still checking)

Analyst comments: GFI -2.4% (downgraded to Underweight from Neutral at HSBC Securities), ZTS -1.7% (downgraded to Neutral from Overweight at JP Morgan), BWA -1.4% (downgraded to Neutral from Buy at Goldman), TOT -1.2% (downgraded to Neutral from Buy at UBS), TSO -1.1% (downgraded to Neutral from Buy at Goldman -- Removed from Conviction Buy List), GPS -1% (downgraded to Underperform from Neutral at Credit Suisse), AXP -0.8% (downgraded to Underperform from Buy at BofA/Merrill)

>>>US Gapping up

Gapping up
In reaction to strong earnings/guidance
: KING +21.8%, CYBR +19.4%, CYTK +15.3%, SANW +13.9%, ELLI +12.9%, RCKY +11.7%, MTSN +11.4%, JCOM +11.4%, AEL +9%, JMP +7.4%, COLM +4.4%, NEWR +4.3%, LOGM +3.9%, CBS +3.8%, SVM +3.7%, WWWW +3.5%, QLIK +3.1%, EXC +3%, WAGE +2.7%, PTN +2.7%, ALNY +2.3%, MT +2.1%, RUTH +2%, RBCN+1.9%, WBC +1.9%, DTE +1.8%, BCOR +1.7%, CUZ +1.7%, ITT +1.6%, TRP +1.6%, BIOD +1.3%, BYD +1.1%, EMKR +1%, IRWD +0.9%

M&A news: FSL +10.2% (in discussions regarding possible sale, according to reports), XON +3.2% (has entered into a definitive agreement to acquire ActoGeniX for ~$60 mln), SLXP +1.3% (Shire (SHPG) may also bid for SLXP, according to reports)

Select EU financial related names showing strength: NBG +9.1%, IRE +3%, BCS +2.3%, SAN +1.4%, ING +1.3%

Select metals/mining stocks trading higher: ANV +4.4%, BHP +3.1%, BHP +3.1%, RIO +2.4%, AU +2%, EGO +1.2%, VALE +0.9%

Select oil/gas related names showing strength: SD +6.7%, GDP +5.5%, WLL +4.4%, WLL +4.4%, PBR +3.2%, RIG +2%, BAS +1.4%, .

Other news: GENE +8.5% (cont vol pre-mkt), STO +2.8% (to submit Johan Sverdup development plan to Norwegian Ministry of Petroleum and Energy), YNDX +2.7% (cont strength on back of Russia/Ukraine peace deal), OCLR +2.1% (prices offering of $55 mln of convertible senior notes at 6.00%, with maturities at 2020), FEYE +1.7% (announces Global Threat Intelligence Sharing Initiative at White House Summit on cybersecurity and consumer protection), LOCK +1.5% (announced that Schwark Satyavolu has joined in the new position of Executive Vice President, product and technology, and Ty Shay will become Chief Marketing Officer on March 9), SUNE +1.4% (announces the completion of a 677 kilowatt ground-mount solar photovoltaic system that will provide energy for the AT&T (T) materials distribution facility)

Analyst comments: RDEN +5.4% (upgraded to Outperform from Market Perform at BMO Capital), ASNA +4.9% (upgraded to Buy from Hold at KeyBanc Capital Mkts), GSK +3.8% (upgraded to Buy from Sell at UBS), APA +1.8% (upgraded to Neutral from Underperform at BofA/Merrill), VLO +1.3% (upgraded to Buy from Neutral at Goldman; Added to Conviction Buy List), WPX +0.6% (initiated with a Outperform at Raymond James), CRH +0.5% (added to Europe 1 List at BofA/Merrill)

(BFW) Bayer’s Brandicourt Said to Be a Frontrunner for Sanofi CEO Post


Bayer’s Brandicourt Said to Be a Frontrunner for Sanofi CEO Post
2015-02-13 13:53:30.653 GMT


By Albertina Torsoli, Jacqueline Simmons and Manuel Baigorri
(Bloomberg) -- Talks for Olivier Brandicourt, who runs
Bayer AG’s health-care business, to leave current role involve
unwinding contractual obligations at Bayer, people with
knowledge said.

* Cos. may fail to reach an agreement, people say
* Other candidates also being considered, people say
* Sanofi, Bayer representatives declined to comment, and
Brandicourt didn’t immediately respond to an e-mail
* EARLIER: Sanofi to Name New Chief Soon as Pool of Candidates
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To contact the reporters on this story:
Albertina Torsoli in Geneva at +41-22-317-9202 or
atorsoli@bloomberg.net;
Jacqueline Simmons in Paris at +33-1-5365-5055 or
jackiem@bloomberg.net;
Manuel Baigorri in London at +44-20-3525-4457 or
mbaigorri@bloomberg.net
To contact the editors responsible for this story:
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csomayaji@bloomberg.net
David Risser