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Frontrunning: March 26

Tyler Durden's picture




 
  • Berezovsky Died of Hanging Without Struggle, Police Say (BBG)
  • BRICS Nations Plan New Bank to Bypass World Bank, IMF (BBG)
  • China pledges more investments to Africa (FT)
  • BOJ's Kuroda signals targeting longer-dated JGBs (Reuters)
  • North Korea orders artillery to be combat ready, targeting U.S. bases (Reuters)
  • Supreme Court to take up gay marriage for the first time (Reuters)
  • U.S. Cracks Down on 'Forced' Insurance (WSJ)
  • Japanese courts press Abe on electoral reform (FT)
  • Vietnam accuses China of attack on fishermen in South China Sea (Reuters)
  • Italy's High Court Overturns Knox Acquittal (WSJ)
  • Facebook’s Zuckerberg Said to Explore Forming Political Group (BBG)

 

Overnight Media Digest

WSJ

* Dell Inc said it received two alternative acquisition proposals from Blackstone and activist investor Carl Icahn, following a $24.4 billion deal last month to be taken private by founder Michael Dell.

* The BlackBerry Z10 phone from BlackBerry has received tepid marketing support from AT&T since its debut in stores on Friday, dealing the company an early setback in its drive to improve sales in the crucial U.S. market.

* Boeing Co began the first in a series of 787 Dreamliner test flights on Monday, preparing for regulators to evaluate changes to its lithium-ion battery system and marking another step in the plane maker's effort to return the jet to commercial service.

* Centrica Plc, one of the UK's main energy providers, has signed a deal to buy billions of cubic meters of liquefied natural gas from a U.S. plant, in the first deal clearly intended to bring gas from North America to the UK.

* The U.S. Department of Transportation proposed a $1.7 million fine against Exxon Mobil Corp for failing to properly prepare for what the department says were known flooding risks to one of its pipelines that ruptured in 2011 and spilled 1,500 barrels of crude into Montana's Yellowstone River.

* T-Mobile USA has become the first major wireless carrier in the United States to drop smartphone subsidies, moving away from a model that has helped companies like Apple Inc bank large profits at a steep cost to carriers' margins.

* Oracle Corp on Monday said it agreed to acquire telecommunications software provider Tekelec, continuing a recent effort to profit from the explosion of smartphones and tablet computers burdening carriers' networks.

* Beijing-based Li Ning Co Ltd said in a statement to the Hong Kong Stock Exchange that it plans to downsize after reporting a $318.8 million loss for 2012 and a 25 percent drop in revenue.

* Online video site Hulu has had talks with several potential buyers including Guggenheim Partners, one of several options the company, owned by News Corp and Walt Disney Co, is considering as it tries to resolve uncertainty about its strategic direction.

* A Kuwaiti sheik alleges that a senior executive at Switzerland's UBS AG offered $20 million to get the bank an advisory role on one of the biggest-ever acquisitions in the Middle East, but the bank later backed out of the deal, according to the sheik's testimony in a Dubai court case.

* Canada's Bombardier Inc has condensed its production plans for a second, larger version of its CSeries jetliners to try to keep its tight schedule for the first deliveries of the new planes, according to people familiar with the matter.

* Law firm Howrey LLP was in a "death spiral" for nearly two years, according to new lawsuits that claim the firm's partners didn't seem to know the depth of its financial problems.

 

FT

Fund manager Schroders Plc is to pay 424 million pounds ($646 million) for smaller rival Cazenove Capital, as it moves to bulk up its private banking arm running money for wealthy clients. Michael Dell is willing to explore the possibility of working with Blackstone Group LP and Carl Icahn regarding alternative offers for Dell

U.S. regulators approved Nasdaq OMX Group's $62 million compensation plan for firms that lost money in Facebook Inc's glitch-ridden market debut.

Yahoo Inc has snapped up mobile news aggregator Summly, founded by 17-year-old Nick D'Aloisio two years ago from his home in London.

Cynthia Carroll, the outgoing chief executive of Anglo American , warned mining industry shareholders to either get out of the sector or adjust their expectations.

Dutch package delivery firm TNT Express said the sale process of its Chinese business is underway and that it is pursuing the sale of its Brazilian arm.

Britain's Centrica Plc signed a long-term deal to import U.S. natural gas at a time when the domestic gas production continues to decline while U.S. output hits record highs.

 

NYT

* Michael Dell considers Blackstone Group LP's preliminary proposal for Dell Inc to be potentially friendly to management and may reach out to talk later this week, a person briefed on the matter said on Monday.

* Facebook Inc is no longer relying solely on what its users reveal. Instead, it is tapping outside data sources to learn even more about them, and to sell more finely targeted ads.

* Concord Music Group, an independent music company with an artist roster that includes Paul McCartney, Paul Simon and Creedence Clearwater Revival, has been sold to Wood Creek Capital Management, a private equity firm that has been quietly building a collection of music assets.

* Rengan Rajaratnam pleaded not guilty on Monday to insider trading charges while he worked for the now-defunct Galleon Group, coming nearly two years after the conviction of his older brother, the fallen hedge fund titan Raj Rajaratnam.

* Shares in Bankia SA, the giant Spanish mortgage lender whose collapse last year led to a banking crisis in Spain, slumped on Monday in the first day of trading after regulators wiped out most of the stock's value.

Regulators said on Friday that Bankia shares would be revalued at 1 cent each as the custodial managers who now oversee the bank try to create a clean slate. The new valuation was a condition of Bankia getting a capital injection of 10.7 billion euros ($13.9 billion) from European rescue funds.

* A survey of 800 large and midsize employers including PepsiCo Inc and Wal-Mart Stores Inc found that employers are increasingly trying to lower healthcare costs by using incentives to persuade workers to make better lifestyle choices.

* Puerto Rico has gone on a campaign to promote tax incentives that took effect last year, marketing its beautiful beaches, private schools and bargain costs in an effort to lure affluent American hedge fund managers and business executives to its shores.

* Messages from the world's largest law firm, DLA Piper, disclosed in a dispute over fees, will likely add to a perception that law firms inflate bills by performing superfluous tasks and overstaffing assignment

 

Canada

THE GLOBE AND MAIL

* Companies hoping to snag a piece of the biggest roadwork contract in Quebec's history will first have to prove they're corruption-free, a major test for the province as it aims to fix its failing infrastructure while tackling graft in the construction industry.

* Ontario premier Kathleen Wynne has stepped up her push for new taxes or tolls to pay for public transit expansion, warning that without such measures, badly needed infrastructure will never see the light of day.

Reports in the business section:

* Finance Minister Jim Flaherty says Canada is nearing an elusive free-trade agreement with South Korea, but some Canadian exporters warn they are years behind other countries that already have deals with the Asian manufacturing powerhouse.

* Canada's New Democratic Party (NDP) is about to reintroduce legislation designed to ensure Canadian companies are not using conflict minerals in their supply chain - and that consumers can be certain their smartphones and other electronics are free of minerals fuelling violence in the Democratic Republic of the Congo.

NATIONAL POST

* Conservative MP Mark Warawa, who wants Canadian parliamentarians to condemn sex-selection abortions, is refusing to back down after his motion was deemed out of order last week by a House of Commons committee.

Warawa is urging MPs to reverse that decision and allow a vote in the Commons on the issue. He will plead his case on Wednesday to the Commons' procedural affairs committee.

FINANCIAL POST

* The apparently lacklustre sales of BlackBerry's new flagship Z10 handset in the United States have caused some observers to wonder if the delayed launch in the smartphone maker's most important market have dealt a blow to its chance at a comeback.

 

China

CHINA SECURITIES JOURNAL

-- China Investment Corporation has signed a contract with Russian companies to work together in promoting infrastructure investment and development in far eastern Russia, according to an official announcement.

-- Dongfeng Automobile Co Ltd reported a 95 percent fall in net profit to 21.7 million yuan and a 17 percent fall in revenue to 17.7 billion yuan in 2012, according to the company's annual report.

-- Bright Dairy and Food Co. reported a 31 percent rise in 2012 net profit to 311 million yuan. The firm hopes to achieve 15.8 billion yuan in revenue this year.

SHANGHAI SECURITIES NEWS

-- China's inflation could fall to around 2 percent in March from a year earlier and the whole year number is likely to be around 2.6 percent, said Song Guoqing, member of the Central Bank Monetary Policy Committee, adding that gross domestic product (GDP) could grow 8.3 percent.

-- China's Securities Regulatory Commission, Beijing branch said it will promote securities companies to list in the stock market.

PEOPLE'S DAILY

-- Chinese President Xi Jinping will be invited to the opening ceremony of the Boao Forum for Asia (BFA) Annual Conference 2013 and he will deliver a keynote speech.

-- China should crack down on 'naked officials' -- officials who have most of their assets and close family abroad -- and seek to regulate and identify which cadres fall into this category.

 

Fly On The Wall 7:00 Market Snapshot

ANALYST RESEARCH

Upgrades

BroadSoft (BSFT) upgraded to Market Perform from Underperform at Raymond James
Electronic Arts (EA) upgraded to Overweight from Neutral at Piper Jaffray
Green Dot (GDOT) upgraded to Outperform from Market Perform at JMP Securities
LaSalle Hotel (LHO) upgraded to Outperform from Market Perform at BMO Capital
Peabody Energy (BTU) upgraded to Outperform from Market Perform at Raymond James
RF Micro Devices (RFMD) upgraded to Outperform from Perform at Oppenheimer

Downgrades

Ashland (ASH) downgraded to Neutral from Buy at Longbow
Cabot Oil & Gas (COG) downgraded to Hold from Buy at Stifel
Gordmans Stores (GMAN) downgraded to Hold from Buy at Stifel
Gordmans Stores (GMAN) downgraded to Neutral from Overweight at Piper Jaffray
Kraton Performance (KRA) downgraded to Perform from Outperform at Oppenheimer
Magellan Health (MGLN) downgraded to Market Perform from Outperform at Raymond James
MeadWestvaco (MWV) downgraded to Neutral from Buy at UBS
Southwestern Energy (SWN) downgraded to Hold from Buy at Stifel

Initiations

Brookfield Residential (BRP) initiated with a Buy at Citigroup
Fusion-io (FIO) initiated with a Perform at Oppenheimer
Luminex (LMNX) initiated with a Neutral at Wedbush
ON Semiconductor (ONNN) initiated with a Buy at BofA/Merrill
TRI Pointe Homes (TPH) initiated with an Outperform at FBR Capital

HOT STOCKS

Raytheon (RTN) said it will consolidate its businesses to streamline operations, and sees a workforce reduction of about 200 employees. The company also named Thomas Kennedy as COO
Magellan Health Services (MGLN) said that Magellan Complete Care of Arizona, a joint venture owned 80% by Magellan and 20% by Vanguard/Phoenix Health Plan, was notified by the state of Arizona that it was not selected as the Regional Behavioral Health Authority in GSA6; Maricopa County
Onyx Pharmaceuticals (ONXX) and Bayer (BAYRY) announced approval of Stivarga in Japan for the treatment of patients with metastatic colorectal cancer
Green Mountain (GMCR) appointed Michael Degnan Chief Legal Officer, General Counsel

EARNINGS/GUIDANCE

Companies that beat consensus earnings expectations last night and today include:
Children's Place (PLCE), Gordmans Stores (GMAN)

Companies that missed consensus earnings expectations include:
Cascade Bancorp (CACB), U.S. Auto Parts (PRTS), Focus Media (FMCN)

Companies that matched consensus earnings expectations include:
AuRico Gold (AUQ), Sonic (SONC)

NEWSPAPERS/WEBSITES

  • The board of Hulu, which is owned by News Corp (NWSA) and Disney (DIS), has reached out to potential buyers to gauge interest in acquiring the company, according to Reuters.
  • T-Mobile (DTEGY) has decided to drop smartphone subsidies, becoming the first major wireless carrier in the U.S. to do so, reports the Wall Street Journal.
  • Several Supreme Court justices seemed skeptical about the practice of brand name pharmaceutical companies paying generic companies to keep their cheaper drugs off the market for a longer time, according to The New York Times.
  • Zynga (ZNGA) CIO Debra Chrapaty is leaving the company to become CEO of Nirvanix, an enterprise cloud storage company, according to an AllThingsD report.

SYNDICATE

ARCA Biopharma (ABIO) files to sell $20M in common stock, warrants
Arcos Dorados (ARCO) files to sell 2.3M shares of common stock for holders
Calumet Specialty Products (CLMT) files to sell 5.25M shares of common stock
Coastal Contacts (COA) files to sell common stock
Rainmaker Systems (RMKR) files to sell $7.2M in common stock
The First Bancorp (FNLC) 662K share Spot Secondary priced at $16.25

 

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Tue, 03/26/2013 - 07:34 | 3376007 stocktivity
stocktivity's picture

The end of the quarter is Thursday (market closed on Good Friday). Benny and the bankers will do whatever it takes to keep the ramp up going for the week and finish the quarter green. New highs this week. It's all Bullshit!!!

Tue, 03/26/2013 - 08:55 | 3376201 Spirit Of Truth
Spirit Of Truth's picture

Wall Street near or at all-time nominal highs and meanwhile...."North Korea orders artillery to be combat ready, targeting U.S. bases (Reuters)"

http://www.secondkoreanwar.com

Tue, 03/26/2013 - 07:36 | 3376010 sampo
sampo's picture

BRICS Nations Plan New Bank to Bypass World Bank, IMF (BBG)

Here comes the gold backed Renmimbi?

Tue, 03/26/2013 - 08:03 | 3376043 fudge
fudge's picture

guess we'll need to follow .. interesting announcement for sure.

 

ETA .. some of the comments don't seem to think this is a good idea

 

 

Tue, 03/26/2013 - 09:01 | 3376224 Oldrepublic
Oldrepublic's picture

Brick by Brick the BRICS are building the new Bank of the South

Tue, 03/26/2013 - 16:51 | 3378869 thisandthat
thisandthat's picture

Never too soon..

Tue, 03/26/2013 - 07:47 | 3376023 Super Broccoli
Super Broccoli's picture

anyone knows what happened to Keizer ? haven't heard from him over Cyprus ! Actually the Keizer report website has been off for a few days ???? RT fired him ?

Tue, 03/26/2013 - 07:49 | 3376028 Temporalist
Temporalist's picture

As I shared yesterday you can use the MK RSS feed to view the most recent posts:

http://maxkeiser.com/feed/

 

Also here is a post at GATA.org

Still not sentenced, Liberty Dollar founder moves for acquittal or retrial

"Through his lawyer, Noell P. Tin of Charlotte, North Carolina, Liberty Dollar founder Bernard von NotHaus, convicted of counterfeiting two years ago in federal court in North Carolina but still not sentenced, has filed a motion for acquittal or retrial."

http://www.gata.org/node/12389

Tue, 03/26/2013 - 07:47 | 3376025 ziggy59
ziggy59's picture

Notice Bullshit and Bullish are almost identical?

Tue, 03/26/2013 - 07:50 | 3376029 mantrid
mantrid's picture

Berezovsky Died of Hanging Without Struggle, Police Say

 

yeah, did they look closer at that polonium sandwich?

Tue, 03/26/2013 - 08:03 | 3376067 Iocosus
Iocosus's picture

Died without a struggle? That manner of dying is nothing but a struggle.

Try this tie on for size, Mr. Berezovsky.

Tue, 03/26/2013 - 07:51 | 3376031 kushmere
kushmere's picture

I expect the news out of Europe today will again be bullish for the Bitcoin prices. Governments move too slowly, people move faster. Bitcoin is not perfect, but a volatile market is nothing compared to the thieving bastards in brussles.

http://bestbitcoinsites.wordpress.com

Tue, 03/26/2013 - 07:52 | 3376032 morning
morning's picture

Just out, Portugal needs to cut 5.6B from 4.0B (of which zero already implemented)

http://www.noticiasaominuto.com/economia/57438/machadada-no-estado-socia...ões#.UVGKoBd7Ips

 

I think I will short the EUR moving average itself

Tue, 03/26/2013 - 08:03 | 3376068 toys for tits
toys for tits's picture

Oh, the Supreme Court is taking a long, hard, look at gay marriage.  Will cum up with a decision later this year.

Tue, 03/26/2013 - 08:04 | 3376071 Diplodicus Rex
Diplodicus Rex's picture

"Berezovsky’s cause of death “is consistent with hanging,” Thames Valley Police said yesterday in an e-mailed statement. “The pathologist has found nothing to indicate a violent struggle.” "

 

"The employee said he forced open the bathroom door, which was locked from the inside, and discovered Berezovsky’s body on the floor. "

 

So he hanged himself and then climbed out of the noose and lay down on the floor. He should have shot himself twice in the head just to make sure.

 

Thames Valley Police - the same mob of gangsters who pronounced that Dr David Kelly committed suicide, or was suicided as they say in the trade.

http://www.telegraph.co.uk/news/9861704/Doctors-call-for-Dr-David-Kelly-...

 

Tue, 03/26/2013 - 08:11 | 3376090 Temporalist
Temporalist's picture

You should have included this:

"Dr Kelly's body was found near his Oxfordshire home in 2003 shortly after he was identified as the source of a BBC report about the Government's dossier on Iraqi weapons of mass destruction."

Tue, 03/26/2013 - 08:53 | 3376198 Diplodicus Rex
Diplodicus Rex's picture

I hope, probably in vain, that at some time in the future (after the crash, when the dust has settled) that Bliar will be hung as a warmongering sociopath for this and many other crimes.

Tue, 03/26/2013 - 08:45 | 3376171 smacker
smacker's picture

 

 

And then there was Gareth Williams, a GCHQ spy operative found dead inside a zipped and locked luggage holdall inside his MI6 flat in Central London which had very secure access including CCTV. He was seconded to MI6 very soon after he discovered - and expressed anger with - that the 'terrorist controller' who was co-ordinating a terror attack in London remotely from Pakistan using several completely dumb fcukwit Pakistanis in London, was himself on the payroll of MI5. This terrorist plan lead to a great hoo-hah in the MSM inspired by the Home Office as "another terror plot foiled", thereby maintaining the "politics of fear" govt policy. Nobody believes Williams could have possibly killed himself and the Metropolitian Police promised to investigate this incident further. So far they have reported nothing. It's all gone quiet and will stay that way.

Tue, 03/26/2013 - 08:08 | 3376086 Diplodicus Rex
Diplodicus Rex's picture
 

http://www.bbc.co.uk/news/uk-england-london-21927450

Bankrupt Ponzi scheme fraudster ordered to pay £1

A bankrupt stockbroker who defrauded £316m from people has been ordered to pay a nominal £1 fee.

Nicholas Levene, 48, was jailed for 13 years after he admitted a Ponzi scheme which brought millions into his bank accounts between April 2005 and September 2009.

 

He ran that Ponzi scheme for 13 years and no-one noticed. Give me a break.

Tue, 03/26/2013 - 08:20 | 3376110 earnyermoney
earnyermoney's picture

"U.S. Cracking down on Forced Insurance" Hilarious. Bet ObamaCare is off the hit list.

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