This page has been archived and commenting is disabled.

Frontrunning: December 24

Tyler Durden's picture





 
  • Global Currency Tensions Rise (WSJ) - in other words, when everyone eases "to infinity", nobody eases
  • EU to give Spain, France more time to cut deficit (Reuters) - But not because their economies are not "recovering" fast enough, oh no.
  • As we expected, Grupo Bimbo considering a bid for Hostess' snack cakes and bread brands (NY Post)
  • Time for bus-control: Eleven children killed in latest Chinese bus crash (Reuters)
  • Greece Should Write Off Billions of Overdue Taxes, Report Says (BBG) - not all taxes in perpetuity?
  • India clamps down on gang-rape protests, PM appeals for calm (Reuters)
  • But Meredith Whitney said... Push for Cheaper Credit Hits Wall (WSJ)
  • For Greece, last major austerity package, says eurozone official (Kathimerini)...  "unless there is another one"
  • Americans Miss $200 Billion Abandoning Stocks (BBG) ... and two flash crashes... and $15 trillion in artificial central bank props
  • Goldman Sachs Takes Long View Over Payouts (FT)
  • Cliff Would Strike Low Incomes Hard (WSJ)
  • Afghan policewoman kills US police adviser (AP)
  • Navy SEAL commander dead in Afghanistan in suspected suicide (Reuters)
  • For Sale in Japan: Electronics Assets (WSJ)

 

Overnight Media Digest

WSJ

* A federal judge in New Orleans approved a $7.8 billion settlement between BP Plc and Gulf Coast businesses and residents over damages related to the 2010 offshore oil spill.

* Engineers at Motorola Mobility are hard at work on a sophisticated handset - known internally as the "X phone" - but the Google Inc unit is running into some obstacles in its effort to provide more potent competition for Apple Inc , said people familiar with the matter.

* Shanghai regulators gave Yum Brands Inc some shelter from criticism by China's state-run media of its food-safety practices, saying chicken sampled from the U.S. restaurant company's KFC arm complied with government limits on antibiotics.

* News Corp said the publishing company it plans to spin off incurred losses last fiscal year and in the most recent quarter.

* The court-appointed authorities liquidating various parts of MF Global Holdings Ltd agreed to settle long-running legal disputes, a three-way truce expected to help customers of the failed brokerage firm get their money back more quickly.

* Federal agencies are examining allegations that Regions Financial Corp improperly classified loans that went bad during the financial crisis, according to depositions filed as part of a civil lawsuit against the large southeastern U.S. bank.

* After spending the past two years increasing investments in Europe's high-end real-estate market, Norway's $682 billion oil fund is poised to hit the U.S. property market with deep pockets and an appetite for big-ticket deals.

* Congressional battle lines hardened Sunday over firearms restrictions, laying the foundation for what will likely be a fight over any proposed new gun laws

 

FT

BRITONS PREFER TO GIVE MONEY, NOT TIME

Britons are far more reluctant to give up their time to help deliver public services than their European and U.S. counterparts according to an FT/Harris poll, dealing a blow to David Cameron's "Big Society."

RIO TINTO LIFTS RIVERSDALE BID

Rio Tinto (RIO.AX) has stepped up its pursuit of Riversdale Mining RIV.AX with a new A$3.9 billion bid that would entail at least an extra $1 billion in group capital expenditure.

GOLDMAN SACHS TAKES LONG VIEW ON PAYOUTS

Goldman Sachs (GS.N) has adopted a new long-term bonus plan that lets the board award top officers based on their ability to meet long-term goals without encouraging risk-taking.

GE TO PUT ASIDE $500 MLN FOR RIVER CLEAN-UP

General Electric (GE.N) will set aside $500 million to pay for the cleanup of toxic chemicals from the bottom of the Hudson River.

LENDERS BACK CREST DEBT-SWAP APPROVAL

The majority of lenders to Crest Nicholson [CRTNC.UL] have voiced support for a proposal by U.S. fund Varde which would see the company push through its second debt-for-equity swap in three years.

 

Canada

THE GLOBE AND MAIL

* Police officers across Canada continue to grapple with Twitter users revealing the location of impaired driving checkstops, which ramp up during the holiday season.

* Liberal leadership contender Justin Trudeau told an Islamic conference Saturday that groups who attacked his decision to attend the gathering only work to divide Canadians.

Reports in the business section:

* The Canadian Federation of Independent Business wants both lower taxes and deficit reduction this holiday season. During a recent round of pre-budget consultations, the powerful business lobby urged Ottawa to stick to its current target of wiping out the deficit by 2016.

NATIONAL POST

* A Gangnam Style parody video set in Sunnybrook Hospital's maternity ward, featuring a series of jocular delivery room scenes, was pulled from the organization's official YouTube channel after being met with criticism from a women's rights group, which has since demanded a public apology from the hospital.

FINANCIAL POST

* SNC Lavalin Group Inc is demanding that all independent consultants it does business with complete an "ethics exam" by the end of the year or risk losing their contracts with the company.

* Canada has increased by C$50 billion ($50.27 billion) the amount of residential mortgages that it is willing to guarantee.

But this time the Canada Mortgage and Housing Corp , the biggest provider of mortgage default insurance, is not getting any. Instead, the additional backing is going only to private-sector players such as Genworth Canada, who will see their maximum raised to $300 billion from $250 billion

 

China

CHINA SECURITIES JOURNAL

--Charoen Pokphand Group said the funds used to purchase a stake in Ping An Insurance (Group) Co Of China Ltd are legitimate. Domestic media has reported that a part of the funds were borrowed from local commercial banks.

--Shanxi, a province of North China, started the country's first coking coal spot trading platform.

SHANGHAI SECURITIES NEWS

--Investment in the domestic sea water desalination industry could hit 20 billion yuan ($3.21 billion) during the 12th five-year plan period, with a capacity of 2.2 cubic metres of sea water a day.

CHINA DAILY

--Deep processing in the agriculture sector is becoming a hot spot for investment, as venture capital and private equity companies seek new outlets in the gloomy economy. During the last three quarters of this year, $214 million flowed into the agriculture sector from 37 venture capitalist and private equity funds, according to a report by ChinaVenture Group.

--A cold front has descended on many provincials capitals, with temperatures in some hitting well below -20 degrees Celsius. Parts of central and eastern areas are predicted to hit record lows, the National Meteorological Center said.

SHANGHAI DAILY

--Chicken from Shandong Liuhe Group, supplier to Yum Brands Inc's fast-food chain KFC, is still being sold in some supermarkets in Shanghai. The city's food and drug authorities said there had been no order so far to pull it from the shelves.

PEOPLE'S DAILY

--China should expand domestic demand, strengthen the change in the economic structure and take more steps in innovation to achieve healthy economic development and social harmony and stability, the paper said in a commentary.

 

Fly On The Wall 7:00 am Market Snapshot

ANALYST RESEARCH

CorEnergy (CORR) upgraded to Neutral from Underperform at BofA/Merrill
Fly Leasing (FLY) upgraded to Buy from Neutral at Citigroup
Pinnacle Entertainment (PNK) downgraded to Neutral from Positive at Susquehanna
General Motors (GM) reinstated with a Buy at Goldman
Yahoo! (YHOO) price target raised to $26 from $19 at Needham
News Corp. (NWSA) price target raised to $29 from $26 at Deutsche Bank
Validus (VR) hurricane losses well above expectations, says Deutsche Bank
Greenbrier (GBX) board right in rejecting Icahn's offer, says Jefferies

HOT STOCKS

GM (GM), Punch Metals, ZF reached agreement on Strasbourg operations
AT&T (T) reached tentative agreement with Communications Workers of America
United Technologies (UTX) to divest UTC Power unit
Zynga (ZNGA) indicated U.K. online gambling initiative may come in early 2013

EARNINGS

Companies that missed consensus earnings expectations include:
Robbins & Myers (RBN)

NEWSPAPERS/WEBSITES

Japan's struggling consumer-electronics companies (PC, SNE, SHCAY) are putting aside years of resistance to get serious about shedding nonessential assets and streamlining their  operations. But this may be hindered by what they are willing to sell and what potential buyers want, the Wall Street Journal reports
Now that Facebook (FB), Zynga (ZNGA) and Groupon (GRPN) have fizzled in their first year on the stock market, the hype over social, local and mobile  has subsided. For many of the still-private Web start-ups that rode the wave up, that now means grappling with the downside of the cycle, the Wall Street Journal reports
PSA Peugeot Citroen (PEUGY) has ruled out a merger with General Motors' (GM) Opel division as part of their alliance, Autogazette reported, citing a Peugeot manager, Reuters reports
The rivalry between Amazon.com (AMZN) and Google (GOOG) will escalate in 2013 as their areas of rivalry grow, from online advertising and retail to mobile gadgets and cloud computing, Reuters reports
Americans investors have missed out on nearly $200B of stock gains as they drained money from the market in the past four years, a result of the financial crisis, Bloomberg reports
Investors reduced bullish commodity bets to the lowest in almost six months as U.S. budget talks stalled, increasing concern that lawmakers’ failure to reach an agreement with push the U.S. economy back into a recession, Bloomberg reports

BARRON’S

Central Garden & Pet (CENT, CENTA) could be a play for patient investors
PNC Financial (PNC) undervalued, could increase 20% if p/e multiple rises
Capital One (COF) 360 to launch in February, will link to ShareBuilder
Expedia (EXPE), Microsoft (MSFT), EMC (EMC) and Terex (TEX) have profit momentum and present a good opportunity for investors to find growth in earnings

SYNDICATE

ACADIA (ACAD) files to sell 19.5M shares of common stock for holders
Gas Natural (EGAS) files to sell $50M of common stock
Sagent Pharmaceuticals (SGNT) files to sell up to 24.05M shares for holders

ACTIVIST/PASSIVE FILINGS

Carl Icahn lowers stake in Greenbrier (GBX) to 3.41% from 9.99%
Visium reports 6.2% passive stake in ACADIA (ACAD)

 


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 12/24/2012 - 08:36 | Link to Comment lolmao500
lolmao500's picture

India should start enforcing laws against the sickos who attack women.

(yep, in India, women are treated like total garbage... murder a women, rape a women = no big deal)

Mon, 12/24/2012 - 08:44 | Link to Comment BattlegroundEur...
BattlegroundEurope2011's picture

Its a democracy so it will be fixed.

 

/sarc off

Mon, 12/24/2012 - 08:45 | Link to Comment scatterbrains
scatterbrains's picture

Have they determined if the perps are hindu or muslim yet ?

Mon, 12/24/2012 - 08:53 | Link to Comment James_Cole
James_Cole's picture

Another $50B of Canadian taxpayer money thrown at mortgages. $50B to the "private sector" no less, brilliant work Canadian government.

Mon, 12/24/2012 - 10:14 | Link to Comment CPL
CPL's picture

Don't worry, our government will turn to vapour soon anyways.  The pension systems promised are not as healthy as advertised.  If you've got RRSP's, see if you can get TD (if you are with TD) to transfer into physical silver or gold with a safety deposit box component.  TD seems to still have silver and gold talking with the phone rep, but I would talk directly to one of the investment reps at a larger downtown (any town) location.  

Rule changes a couple of years ago should allow you the opportunity to avoid losing everything once the USD drops dead and switches to the proposed blue back (vs green back) which will be recieved as openly as a leper in a kindergarden class.  And of course, don't bother with RRSP contributions.  Cash in your hand will be king while you position yourself.

Mon, 12/24/2012 - 08:42 | Link to Comment sbenard
sbenard's picture

What happened to my entitlement of a Santa Claus rally?

Our gift from the Obamas:
An economic lump of coal. Over the fiscal cliff and into the debt abyss! Congratulations, America! You have the dictator you deserve!

Mon, 12/24/2012 - 09:08 | Link to Comment hansg
hansg's picture

India is clamping down on gang-rape PROTESTS.

Well, why wouldn't it? After all, clamping down on GANG-RAPE actually sounds like work... Also, and correct me if I'm being a bigotted racist here, but here in Europe we tend to associate rape with, you know, the religion of peace quote unquote. Would the authorities perhaps be afraid of raising the anger and hatred of the followers of said religion?

Mon, 12/24/2012 - 10:19 | Link to Comment CPL
CPL's picture

Both India and China have a liberal policy adoption of aborting girls and having son's, plus out of control population growth.

 

Now India and China have an extra 150 million working age men that will never find a mate.  Huge business in Asia for slavery because of it.  Supply and demand.

Mon, 12/24/2012 - 09:09 | Link to Comment Manipuflation
Manipuflation's picture

Santa Claus has been delayed.  I lured him in with a case of beer and some weedout.  We had to have a talk.

Mon, 12/24/2012 - 09:45 | Link to Comment SheepDog-One
SheepDog-One's picture

Bloomberg has confirmed itself to be totaly retarded....what the hell do they mean 'Americans missed out on $300 billion dollars'? That would assume that everyone who held stocks could have cashed out by finding Greater Fooler at higher prices? Utter bullshit....sad to see Bloomberg now just a whore...once was decent financial reporting now its just a gutter rag.

Mon, 12/24/2012 - 09:56 | Link to Comment Miss Expectations
Miss Expectations's picture
U.S. Army to train Africa forces in anti-terror

A U.S. Army brigade will begin sending small teams into as many as 35 African nations early next year, part of an intensifying Pentagon effort to train countries to battle extremists and give the U.S. a ready and trained force to dispatch to Africa if crises requiring the U.S. military emerge.

http://www.cbsnews.com/8301-202_162-57560682/u.s-army-to-train-africa-fo...

Mon, 12/24/2012 - 10:19 | Link to Comment CPL
CPL's picture

-cough- Liberia -cough-

Mon, 12/24/2012 - 12:07 | Link to Comment otto skorzeny
otto skorzeny's picture

more like-the US sees China getting their hooks into Africa's resources and we have got to extend our "freedom" to the dark continent.

Do NOT follow this link or you will be banned from the site!