Google

The second round of the French presidential election is by now well underway, with just 5 hours left in the voting day, a 30.66% voter turnout by noon (compared to 34.11% in the runoff round in 2007) according to the Ministry of the Interior, and in which the first exit polls give Hollande an expected 52.5-53% lead over Sarkozy. While not much can be disclosed by law until polling stations close at 8pm, our French speaking readers can find the best live blog of the election at Le Figaro, while for everyone else we recommend the following live feed of France24 TV in English with the best election coverage. At this point one thing is certain: it will take either a miracle, or Diebold, to prevent the official launch of Horkel (which we are more partial to, as we coined it, than Merlande), or in those rare occasions when the media establishment has has enough of being lied to, Merde.

Google vs .GOV vs Apple vs Telcos: .GOV keeps old way of doing business alive for current broadband cos. Roads are expensive too, but we have found ways to build them without requiring tolls at the end of our driveways.

• Europe focus of global May Day labour protests (BBC)
• Occupy movement's May Day turnout seen as test for its future (Reuters)
• BofA to Cut From Elite Ranks, will fire 2000 (WSJ)
• Man Group Has $1 Billion Outflows; Shares Slide on Cash Concern (Bloomberg)
• Obama Fails to Stem Middle-Class Slide He Blamed on Bush (Bloomberg)
• Berlin insists on eurozone austerity (FT)
• This must be really good for AMZN's 1.5% operating profit margins: Microsoft muscles in on ebooks (FT)
• Ohio Union Fight Shakes Up Race (WSJ)
• How to Lose $7.8 Billion and Still Be Top of the Rich List (WSJ)
• Hollande Seen Bowing to Debt Crisis in Socialists’ Balancing Act (Bloomberg)
• BP profit falls as Gulf spill costs still weigh (Reuters)

As creativity dies, so will the usefulness of the US cellular carrier.

It is amazing that so few cannot see the new millenium's Microsoft, potentially dominating mobile and desktop computing on a cloudy day!

• Only the cattle cars are missing: Greece opens detention camp for immigrants as election looms (Reuters)
• China really wants that Iran oil - China mulls guarantees for ships carrying Iran oil (Reuters)
• U.S. eyes testy China talks, Chen backer expects Chinese decision (Reuters, FT)
• Possible arsenic poisoning probed in death of coroner's official (LA Times)
• Europe’s Anti-Austerity Calls Mount as Elections Near (Bloomberg)
• Law firm Dewey dumps executive; talks with rival end (Reuters)
• Greek bank appeals for fresh equity (FT)
• Banks seek to put pressure on small rivals (FT)
• Obama falls short of meteoric expectations abroad (Reuters)

Back in October 2010 we presented an analysis by Bloomberg which showed not only that courtesy of not paying taxes at its statutory rate of 35% Google was adding about $100/share to its then stock price of $607/share, but just how this was executed. Now, it is the turn of Apple, with its $110 billion in cash, to fall under the spotlight, with an extended expose in the NYT titled "How Apple Sidesteps Billions in Taxes" in which we learn that, shockingly, if you are at a table with only corporations sitting to your left and right, then you are the only person in the room paying taxes. Why - because global corporate tax "avoidance" schemes are not only perfectly legal, but they are actively encouraged, and in some cases form the backbone of a sovereign's (ahem Ireland) economic and even domestic policy, which just happens to be front and center in virtually every global corporate org chart permitting virtually the entire elimination of cash taxation at the corporate level.

Here is a thought for an eager Facebook investor: Google revenue - $40 billion; market capitalization $200 billion (plus $40 billion of cash).  Facebook revenue $4 billion; market capitalization $100 billion. So Facebook has to grow revenue 10x for you to double your money.  Good luck!

AT&T holds the key to the trend in Apple's cash cow product

A fundamental overview of the stocks available for drafting during the CNBC Street Signs Stock Draft airing, with my comments & opinions. Yesterday I released the analysis of Apples Q2 earnings & I'm sure it contained content that you didn't read anywhere else.

• Hollande Says Germany Can’t Make Europe’s Decisions Alone (BBG)
• Monti Hits at Eurozone Austerity Push (FT)
• Firm that made loans to Chesapeake CEO defends them (Reuters)
• Bo Xilai's Son Doesn't Drive a Ferrari. He drives a Porsche (WSJ)
• Geithner Urges China to Loosen Hold on Finance System (BBG)
• and yet... Son of Bo Xilai Says Father’s Ouster ‘Destroyed My Life’ (BBG)
• U.S. growth slows as inventory accumulation wanes (Reuters)
• S&P 500 Dividend Payers Climb to Highest in 12 Years (BBG)
• Lacker Sees Fed May Need to Raise Rates in Mid-2013 (BBG)
• Ireland Passes Latest Bailout Review (WSJ)

For those who don't subscribe ask a subscriber the difference between valuation note price (pg 10) & AAPL today. I'll offer a lot of opinion on AAPL, GOOG, RIMM, Facebook & GRPN 2:30 at CNBC Streetsigns

We start today's story of the day by pointing out that Deutsche Bank - easily Europe's most critical financial institution - reported results that were far worse than expected, following a decline in equity and debt trading revenues of 23% and 8%, but primarily due to Europe simply "not being fixed yet" despite what its various politicians tell us. And if DB is still impaired, then something else will have to give. Next, we go to none other than Deutsche Bank strategist Jim Reid, who in his daily Morning Reid piece, reminds the world that with austerity still the primary driver in a double dipping Europe (luckily... at least for now, because no matter how many economists repeat the dogmatic mantra, more debt will never fix an excess debt problem, and in reality austerity is the wrong word - the right one is deleveraging) to wit: "an unconditional ECB is probably what Europe needs now given the austerity drive." However, as German taxpayers who will never fall for unconditional money printing by the ECB (at least someone remembers the Weimar case), the ECB will likely have to keep coming up with creative solutions. Which bring us to the story du jour brought by Suddeutsche Zeitung, according to which the ECB and countries that use the euro are working on an initiative to allow cash-strapped banks direct access to funding from the European Stability Mechanism. As a reminder, both Germany and the ECB have been against this kind of direct uncollateralized, unsterilized injections, so this move is likely a precursor to even more pervasive easing by the European central bank, with the only question being how many headlines of denials by Schauble will hit the tape before this plan is approved. And if all eyes are again back on the ECB, does it mean that the recent distraction face by the IMF can now be forgotten, and more importantly, if the ECB is once again prepping to reliquify, just how bad are things again in Europe? And what happens if this time around the plan to fix a solvency problem with more electronic 1s and 0s does not work?

All you need to read.

• Merkel Pushes Back Against Hollande Call to End Austerity Drive (Bloomberg)
• ECB's Draghi throws crisis ball back to governments (Reuters)
• Greek Bank Chief Warns of a Possible Euro Exit (WSJ)
• China’s Wen Says Economy Will Maintain Robust Expansion (Bloomberg)
• North Korea's nuclear test ready "soon" (Reuters)
• Hong Kong Peg Architect Says Convertible Yuan `Long Way Off’ (Bloomberg)
• Hollande seeks wider EU fiscal pact (FT)
• Gavyn Davies: Why UK GDP continues to lag the G7 (FT)
• U.S. Lost AAA on Danger of Liquidity Crisis, S&P’s Kraemer Says (Bloomberg)