Frontrunning: June 11
- Citigroup Facing $7 Billion Currency Hit on Dollar, Peabody Says (BBG)
- World has 10 years of shale oil, reports US (FT)
- ECB prepares to defend monetary policy in German court (FT)
- BOJ Holds Its Ground (WSJ)
- European Stocks Sink to Seven-Week Low as Treasuries Fall (BBG)
- Fitch warns on risks from shadow banking in China (Reuters)
- Riot police move in on anti-G8 UK protesters (Reuters)
- Obama administration to drop limits on morning-after pill (Reuters)
- ACLU asks spy court to release secret rulings in response to leaks (MSNBC)
- U.S. Relies on Spies for Hire to Sift Deluge of Intelligence (WSJ)
- SEC Nets Win in 'Naked Short' Case (WSJ)
- SoftBank Raises Offer for Sprint to $21.6 Billion (WSJ)
- Chinese rocket launch marks giant leap towards space station (FT)
- Skyscraper Prices Head North (WSJ)
Overnight Media Digest
* The leaks by Edward Snowden reveal a vulnerability in U.S. intelligence since 9/11, triggered by a surge of information collected on people around the world and the proliferation of private government contractors to store it.
* U.S. regulators are stepping up scrutiny of overdraft fees charged by banks, a big revenue stream that is helping the industry lessen the hit caused by low interest rates and the sluggish economy.
* SoftBank said it had agreed with Sprint Nextel to raise its offer for the U.S. wireless carrier by $1.5 billion to $21.6 billion from $20.1 billion.
* S&P raised its outlook on the United States' credit rating but markets ignored the surprise endorsement, the latest sign of ratings firms' waning influence in some arenas.
* Yoga-wear maker Lululemon Athletica said Chief Executive Christine Day is stepping down after a 5 1/2-year tenure.
* An SEC judge ruled that a former Maryland banker perpetrated a short-selling fraud aided by one of the biggest stock-options brokers in the United States.
* The Bank of Japan refrained from taking any new measures to stimulate growth and ease market volatility, citing signs of economic recovery, but disappointing investors.
* Apple sought to recapture its authority as a tastemaker, unveiling the biggest redesign in iPhone software since the smartphone was introduced in 2007 and stressing that the company hasn't lost its cool.
Politicians and public sector unions have criticised Thames Water for reporting on Monday that it paid no corporation tax last year.
Almost all of American Airlines' senior executives are going to leave the company upon its merger with US Airways, the carriers said on Monday.
Private equity firm Terra Firma is hoping to raise over 1 billion euros ($1.3 billion) from a Frankfurt share listing of Deutsche Annington, Germany's biggest residential property company.
U.S. prosecutors in the SAC Capital case are finalising negotiations with the University of Michigan to gain access to computer files linked to an insider trading case against an ex-SAC employee.
Punch Tavern's restructuring plans - to reduce 2.4 billion pounds ($3.7 billion) worth of net debt - on Monday were rejected by bondholders for the second time this year.
Luxury brand Burberry Group's Chief Executive Angela Ahrendts was paid 16.9 million pounds in 2012 - more than any other FTSE-100 chief executive.
* Federal authorities and consumer lawyers say banks play a key role in giving questionable Internet merchants access to the financial system, enabling them to prey on consumers.
* Apple Inc introduced a major redesign of its mobile software system, as well as upgrades for some Mac computers.
* As mobile phones become all-in-one tools for living, suggesting where to eat and the fastest way to the dentist's office, the map of where we are becomes a vital piece of data. From Facebook Inc to Foursquare, Twitter to Travelocity, the companies that seek the attention of people on the go rely heavily on location to deliver relevant information, including advertising.
* Michalis Sallas has thrived in Greece's freewheeling business culture as head of Piraeus Bank SA, but financial oversight is increasing and may complicate his dealings.
* Two longtime friends - Jens Weidmann, the president of the Bundesbank and Jörg Asmussen of the European Central Bank - will appear before Germany's highest court on Tuesday to argue opposite sides of a fateful question: What if the promise that holds the euro zone together is unconstitutional?
* As investors rely increasingly on Finra's database to vet Wall Street professionals, some brokers and executives are trying to remove complaints.
* Veterinary drugs commonly administered to horses would render their meat adulterated under New Mexico law, meaning it would not be fit for human consumption.
* SoftBank Corp of Japan agreed late on Monday to sweeten its takeover bid for Sprint Nextel Corp to $21.6 billion, seeking to block a rival bid by Dish Network Corp .
THE GLOBE AND MAIL
* The Conservative government is putting public-service unions on notice that sick days will be targeted in the next round of collective bargaining. Treasury Board President Tony Clement said the government wants to move away from the current rules, where workers can use up to 15 paid sick days and five family days a year, in addition to vacation time.
* Hubert Lacroix, the president of Radio-Canada and the Canadian Broadcasting Corp, said the broadcaster shouldn't have changed its name to "Ici" so abruptly last week, dropping "Canada" from its public image and raising the ire of Canadians confused by the move away from a name that has served the broadcaster for decades.
* A 78-year-old woman dubbed the "Black Widow" for her criminal past with other men has admitted to slipping tranquilizers into her newlywed husband's coffee while they were on a honeymoon last year.
Reports in the business section:
* The finance ministers and central bankers who set the World Bank's agenda had just signed off on World Bank President Jim Yong Kim's request to set a deadline - 17 years from now, in 2030 - for the elimination of extreme poverty, defined loosely as subsistence on less than $1.25 a day.
* Japan's central bank ended a two-day policy meeting on Tuesday with an upbeat assessment for the world's No. 3 economy and a pledge to persist with its aggressive monetary easing policies aimed at ending years of growth-sapping deflation.
* Canada's biggest city already tops the list for the most high-rises and skyscrapers under construction in North America. It was also Toronto's frothy condominium market that helped push Finance Minister Jim Flaherty into his fourth round of mortgage restrictions almost a year ago.
* Ontario's Opposition accuses Premier Kathleen Wynne of being complicit in the mass deletion of emails on canceled gas plants by senior Liberals in former premier Dalton McGuinty's office.
* Senior figures in the Conservative movement are warning that unless Stephen Harper moves his House Leader, Peter Van Loan, and the Government Whip, Gordon O'Connor, more MPs will follow the unlikely rebel, Brent Rathgeber, out of the caucus door.
* An open booze bar, impromptu golf games, and a live dance band don't add up to value for taxpayers' money, says a Toronto District School Board trustee who has openly criticized a recent three-day gathering of some 200 public school board trustees held at a posh Muskoka resort.
* Air Canada says it is aiming to eliminate its multibillion-dollar pension solvency deficit by 2020 as part of a broader effort to cut costs ahead of a major international expansion.
* Canada's efforts to combat international tax evasion will be in the spotlight when Prime Minister Stephen Harper joins other world leaders next week at the G8 summit in Northern Ireland, with tax watchdogs worried Canada is already balking at some major reforms.
* Total SA is pressing its partner Suncor Energy to take a final investment decision on the Fort Hills project before the end of the year, according to its chairman.
Fly On The Wall 7:00 AM Market Snapshot
AmerisourceBergen (ABC) upgraded to Outperform from Market Perform at Leerink
Arthur J. Gallagher (AJG) upgraded to Buy from Neutral at Goldman
Catamaran (CTRX) upgraded to Buy from Neutral at UBS
Catamaran (CTRX) upgraded to Sector Outperformer from Sector Performer at CIBC
Disney (DIS) upgraded to Outperform from Neutral at Macquarie
Fly Leasing (FLY) upgraded to Buy from Neutral at Citigroup
Navistar (NAV) upgraded to Market Perform from Underperform at BMO Capital
Pinnacle West (PNW) upgraded to Buy from Neutral at UBS
Everest Re (RE) downgraded to Neutral from Buy at Goldman
Kinross Gold (KGC) downgraded to Hold from Buy at Canaccord
Kosmos (KOS) downgraded to Market Perform from Outperform at Raymond James
Moody's (MCO) downgraded to Hold from Buy at Benchmark Co.
XenoPort (XNPT) downgraded to Underweight from Equal Weight at Morgan Stanley
lululemon (LULU) downgraded to Neutral from Buy at UBS
Alnylam (ALNY) initiated with an Overweight at Morgan Stanley
BioAmber (BIOA) initiated with an Outperform at Credit Suisse
Casey's General Stores (CASY) initiated with a Buy at Benchmark Co.
Diamondback Energy (FANG) initiated with a Buy at Topeka
ING U.S. (VOYA) initiated with a Market Perform at Wells Fargo
ING U.S. (VOYA) initiated with a Neutral at Citigroup
ING U.S. (VOYA) initiated with a Neutral at Goldman
ING U.S. (VOYA) initiated with a Neutral at SunTrust
Marketo (MKTO) initiated with a Buy at Canaccord
Marketo (MKTO) initiated with a Neutral at Goldman
Marketo (MKTO) initiated with a Neutral at UBS
Marketo (MKTO) initiated with an Outperform at Credit Suisse
Restoration Hardware (RH) initiated with a Buy at Jefferies
Tableau Software (DATA) initiated with a Buy at UBS
Tableau Software (DATA) initiated with a Market Perform at BMO Capital
Tableau Software (DATA) initiated with a Neutral at Credit Suisse
Tableau Software (DATA) initiated with a Neutral at Goldman
Sprint (S), SoftBank (SFTBF) amended merger agreement, cash for Sprint holders now $5.50/share
Sprint (S) said DISH (DISH) proposal not likely to lead to superior offer
Sallie Mae (SLM) in new $6.8B credit facility, eliminated conduit financing
Kinross Gold (KGC) to cease Ecuador project development, take $720M charge
Royalty Pharma urged Elan (ELN) shareholders to vote against proposals
Texas Instruments (TXN) said Q2 tracking consistent with expectations, orders strong
GE Healthcare (GE) to invest $2B in software development over next five years
CEO David H. Murdock offered to acquire remaining 60% of Dole Food (DOLE)
Timken (TKR) retained Goldman Sachs (GS) to evaluate separation of steel business
lululemon (LULU) CEO Christine Day to step down
Cigna (CI) entered 10-year strategic PBM partnering agreement with Catamaran (CTRX)
Urban Outfitters (URBN) to open 35-40 new stores in FY14
Companies that beat consensus earnings expectations last night and today include:
Diamond Foods (DMND), Stewart Enterprises (STEI), Annie's (BNNY), Synergetics (SURG), lululemon (LULU), Limoneira (LMNR)
Companies that missed consensus earnings expectations include:
Pep Boys (PBY), Majesco (COOL), Coastal Contacts (COA)
- The Consumer Financial Protection Bureau is increasing scrutiny of overdraft fees charged by banks, a big revenue stream that is helping the industry lessen the hit caused by low interest rates and the sluggish economy, the Wall Street Journal reports
- S&P’s Ratings Services (MHFI) joined the bullish voices on the U.S. economy. But markets ignored the surprise endorsement, the latest sign of credit-ratings firms' waning influence over investors in large, heavily traded markets, the Wall Street Journal reports
- The EU plans to lodge a case with the WTO against Chinese duties on specialized steel tubes, sources say, opening another front in a rapidly escalating trade conflict with Beijing. Reuters reports
- The U.S. Navy plans to sign this week a five-year contract valued at near $6.5BB to buy 99 new V-22 Osprey tilt-rotor aircraft built by Boeing (BA) and and Bell Helicopter, a unit of Textron (TXT), Reuters reports
- Apple’s (AAPL) move into the online-radio business may not turn out to be a Pandora Media (P) killer after all. The service shares many features with other Web-radio products, Bloomberg reports
- Fannie Mae (FNMA) and Freddie MAC (FMCC) shareholders sued the U.S., alleging that the 2008 by the Federal Housing Finance Agency takeover of the housing lending giants was illegal and cost investors billions of dollars, Bloomberg reports
Atlas Resource Partners (ARP) 13M share Secondary priced at $21.75
Bright Horizons (BFAM) files to sell 8.5M shares for selling stockholders
Crosstex Energy LP (XTEX) 6M share Spot Secondary re-offered at $20.33
Himax Technologies (HIMX) files to sell 22.09M American Depositary Shares for holders
Portland General Electric (POR) to offer 11.1M shares of common stock