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Frontrunning: March 19

Tyler Durden's picture




 
  • How Putin Parried Obama's Overtures on Crimea (WSJ)
  • West Readies Tighter Sanctions After Russia Seals Crimea Claim (Bloomberg)
  • Putin says U.S. guided by 'the rule of the gun' in foreign policy (Reuters)
  • JPMorgan Said to Agree on Commodities Unit Sale to Mercuria (BBG)
  • Short Sellers Target Chinese Developers as Rout Deepens (BBG)
  • HFT finally under the spotlight: High-Speed Trading Firms Face New U.S. Scrutiny (WSJ)
  • Chinese Dollar Bond Investors Demand Higher Yields After Default (BBG)
  • According to Joe LaVorgna it's the snow's fault: Deutsche Bank Said to Plan Job Cuts at Investment Bank (BBG)
  • Israeli airstrikes kill 1 Syrian soldier, wound 7 (AP)
  • U.K. Unemployment Stays at 7.2% as BOE Sees Further Pound Risks (BBG)
  • Brazilian Billionaire Creates Plan to Beat Death (BBG)
  • China Slowdown Adds to Challenges for U.S. Companies (WSJ)
  • Christie Counts on Revenue Surge Not Seen in Most States (BBG)
  • Toyota Set to Pay $1 Billion in U.S. Probe (WSJ)

 

Overnight Media Digest

WSJ

* General Motors Co Chief Executive Mary Barra intensified her campaign to show the auto maker is serious about product safety, saying a newly appointed executive will brief her monthly to discuss vehicle problems. (http://link.reuters.com/ryc77v)

* Google Inc looks set to beat Apple Inc to market in a new category of mobile devices - smartwatches. LG Electronics Inc and Google's Motorola unit on Tuesday said they would begin selling smartwatches that run on a new version of Google's Android operating system for wearable devices, Android Wear. (http://link.reuters.com/tyc77v)

* The Justice Department is expected to announce a settlement with Toyota Motor Corp as early as Wednesday that could cost the auto maker more than $1 billion to end a criminal probe into its disclosure of safety issues, people familiar with the matter said. (http://link.reuters.com/vyc77v)

* Viacom Inc resolved copyright litigation with Google Inc over the tech giant's YouTube video site, ending a seven-year legal fight that became a symbol of tensions between media companies that produce content and websites that let users share it. (http://link.reuters.com/mad77v)

* Merger discussions between apparel chain J. Crew Group Inc and Japan's Fast Retailing Co have broken down, people familiar with the matter said, reducing the prospects for a deal that would create a global retailing behemoth. (http://link.reuters.com/xyc77v)

* Mercury Systems Inc is on the auction block, according to people familiar with the matter. The sale process is still in the early stages, with initial bids due around now, the people said. The company, which supplies aerospace and defense companies with warfare and intelligence applications, as well as other software, could fetch around $500 million in a sale. (http://link.reuters.com/nad77v)

* Oracle Corp, the corporate-software company best known for databases that are used by many big companies, posted quarterly earnings that fell short of investor expectations. (http://link.reuters.com/dad77v)

 

FT

Mark Carney, governor of the Bank of England, unveiled a radical overhaul of the BoE, introducing sweeping changes to senior management and operations as he warned of risks in housing markets and the international financial system.

Wall Street banks are preparing to split up one of the largest fees yet for handling a stock market listing, as they expect Chinese e-commerce giant Alibaba to pay them $400 million for its float.

Hedge fund Och-Ziff Capital Management warned its results could take a hit from a U.S. Department of Justice investigation into alleged corruption in Libya before the fall of Muammar Gaddafi.

New York's top securities regulator is investigating U.S. stock exchanges and other trading platforms, hoping to determine whether some of their services give high-speed traders an unfair advantage, sources said.

Europe's biggest automaker Volkswagen has refused to increase its 6.7 billion euro ($9.32 billion) bid for the remainder of Swedish truckmaker Scania that it does not already own.

 

NYT

* Mary Barra, barely two months into her job as General Motors' chief executive, pledged to fix faulty ignition switches linked to 12 deaths and sought to restore some measure of confidence in the company's new leadership. (http://link.reuters.com/wad77v)

* The Consumer Financial Protection Bureau and other authorities are redoubling efforts to shield vulnerable Americans from a range of lenders that offer short-term loans with interest rates that can exceed 300 percent. (http://link.reuters.com/zad77v)

* Mutual funds and other big money managers, which now control a record share of public company stock, are working with activist hedge funds behind the scenes, pressing for change at underperforming companies in their portfolios and lending their support to calls for management shake-ups. In some cases, the institutional investors are even stepping out from the shadows to pick their own fights. (http://link.reuters.com/bed77v)

* As Janet Yellen takes over as Fed chairwoman, the immediate challenge confronting her is to overhaul the Fed's forward guidance for short-term interest rates. (http://link.reuters.com/ced77v)

* Google on Tuesday unveiled Android Wear, a version of Google's Android operating system software that is tailored specifically for wearable computers, starting with so-called smartwatches. (http://link.reuters.com/ded77v)

 

Canada

THE GLOBE AND MAIL

* Canadian Finance Minister Jim Flaherty is resigning from the federal cabinet and will be returning to the private sector. Flaherty said in a statement released by his office on Tuesday that he made the decision with his family earlier this year. (link.reuters.com/def77v)

* Three years after it ended combat operations in the Afghanistan war, Canada is finally marking the end of its soldiering in the conflict-ridden central Asian country, as the last batch of Canadian soldiers returned home from Kabul. (link.reuters.com/fef77v)

Reports in the business section:

* A prominent oil-by-rail proponent is urging Ottawa to back away from legislation that will give grain priority over crude oil on the nation's rails, saying such a move would hurt the energy sector just as it eases the costly problem of pipeline constraints. (link.reuters.com/hef77v)

NATIONAL POST

* Finance Minister Jim Flaherty has resigned from the Harper government and Natural Resources Minister Joe Oliver will be appointed the new finance minister, the CBC reported late on Tuesday and sources have confirmed. (link.reuters.com/jef77v)

* As the last Canadian soldiers returned from Afghanistan on Tuesday, those who would follow them into uniform are being stymied by a woefully inept recruiting system where it takes an average of 166 days to be processed. (link.reuters.com/vef77v)

FINANCIAL POST

* U.S. retailers will not ease pressure on Canadian rivals in 2014, according to a new report predicting a meagre 1.5% to 2% retail sales rise in Canada amid relentless competition. (link.reuters.com/pef77v)

* Bank of Canada Governor Stephen Poloz has warned Canada and the world that they should get used to slower growth. (link.reuters.com/sef77v)

 

China

SHANGHAI SECURITIES NEWS

- The Shanghai Stock Exchange reported 130 cases of potential illegal trading activity to China's securities regulator last year, according to a 2013 work report from the city's exchange. This was up 124 percent from the year before.

CHINA DAILY

- China's restive northwestern Xinjiang region plans to expand its textile industry five-fold by 2020 to create jobs and maintain stability in the area, local officials told the paper. The industry will aim to employ 1 million people by 2020, up from 200,000.

CHINA SECURITIES JOURNAL

- Aluminum Corp of China Ltd rebounded in the fourth quarter after three straight quarters of losses, notching a profit of 948 million yuan ($153.1 million) for the year. It cited reductions in sector overcapacity and cost control measures as factors that helped the turnaround.

SHANGHAI DAILY

- Shanghai's new births fell last year to 211,700, the city's Health and Family Planning Commission said on Tuesday, although it expects the number to rise by up to 30,000 in the next few years as families make use of recently relaxed family planning rules.

Britain

The Telegraph

MARK CARNEY TO TRANSFORM BANK OF ENGLAND IN SHAKE-UP

Mark Carney has unveiled a series of "transformative" changes at the Bank of England that he said would help Britain to avoid a repeat of the 2008 financial crisis. (http://link.reuters.com/qac77v)

BARCLAYS AWARDS 12 EXECUTIVES 32 MLN STG IN SHARES

Barclays has handed its top executives share bonuses worth more than 30 million pounds ($49.72 million) as it faces pressure from investors to explain the scale of awards handed to its staff despite a fall in profits. (http://link.reuters.com/sac77v)

BUDGET 2014: GEORGE OSBORNE TO ANNOUNCE NEW 1 POUND COIN

The 1-pound coin is to be replaced by a new model based on the old threepenny bit, Finance Minister George Osborne will announce in Wednesday's Budget. He will say that the current coin, which has been in circulation for 30 years, is no longer suitable for use because it has become vulnerable to sophisticated counterfeiters. (http://link.reuters.com/tac77v)

The Guardian

TALKTALK RAISES ITS BROADBAND AND TV PACKAGE PRICES

TalkTalk customers will pay up to 42 pounds a year more for their broadband and TV packages from May, as the telecoms company announced its second price rise in six months. (http://link.reuters.com/xec77v)

The Times

GEM DIAMONDS SET TO BE INVESTORS' BEST FRIEND

London-quoted miner Gem Diamonds benefited from rising diamond prices towards the end of 2013. Clifford Elphick, its chief executive, said the company intended to pay out to shareholders next year off the back of the improved performance. (http://link.reuters.com/vac77v)

BOSSES CAN'T PUT A NUMBER ON ROYAL MINT

The Royal Mint's top executives were lambasted by Members of Parliament on Tuesday for failing to plan for a privatisation of the coinage business despite indications that it could be put up for sale. (http://link.reuters.com/nec77v)

TOP SCIENCE COMPANY EXOVA JOINS RUSH TO MARKET

One of Britain's leading industrial science companies is gearing up for a 750 million pound flotation. Exova, the Edinburgh-based laboratory testing company that ensures components for Airbus jetliners and Rolls-Royce aeroengines are safe, is likely to announce plans for an initial public offering when it reports its annual results next week. (http://link.reuters.com/rec77v)

The Independent

SAINSBURY'S JUSTIN KING SEES NO NEED FOR PRICE WAR ON ALDI

Sainsbury's posted its first fall in sales for nine years yesterday, as outgoing chief executive Justin King said the market was now growing at its slowest rate since 2005. (http://link.reuters.com/buc77v)

NO BONUS FOR GLENCORE XSTRATA CHIEF IVAN GLASENBERG

Ivan Glasenberg, the billionaire chief executive of Glencore Xstrata, took no bonus or pay rise last year, getting by instead on his $182 million share of the dividend payout. (http://link.reuters.com/duc77v)

 

Fly On The Wall 7:00 AM Market Snapshot

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Current account balance for Q4 at 8:30--consensus deficit $88.1B
FOMC meeting announcement at 14:00

ANALYST RESEARCH

Upgrades

Enterprise Products (EPD) upgraded to Outperform from Neutral at Credit Suisse
Gannett (GCI) upgraded to Equal Weight from Underweight at Barclays
Juniper (JNPR) upgraded to Outperform from Market Perform at Wells Fargo
LATAM Airlines (LFL) upgraded to Strong Buy from Outperform at Raymond James
MakeMyTrip (MMYT) upgraded to Outperform from Perform at Oppenheimer
Regal-Beloit (RBC) upgraded to Outperform from Neutral at RW Baird
Teva (TEVA) upgraded to Neutral from Sell at Goldman
Transocean (RIG) upgraded to Neutral from Sell at Citigroup

Downgrades

Aviva (AV) downgraded to Underperform from Neutral at Exane BNP Paribas
HSBC (HSBC) downgraded to Underperform from Outperform at Credit Suisse
ION Geophysical (IO) downgraded to Equal Weight from Overweight at Barclays
Orbitz (OWW) downgraded to Sell from Neutral at Goldman
Susser Holdings (SUSS) downgraded to Market Perform from Outperform at Raymond James
Walker & Dunlop (WD) downgraded to Market Perform from Outperform at Keefe Bruyette
Wisdom Tree downgraded to Sell from Neutral at Citigroup
Yingli Green Energy (YGE) downgraded to Neutral from Buy at BofA/Merrill

Initiations

AMC Entertainment (AMC) initiated with an Equal Weight at Barclays
Canadian Natural (CNQ) initiated with an Outperformer at CIBC
Cell Therapeutics (CTIC) initiated with a Hold at WallachBeth
Cenovus Energy (CVE) initiated with a Sector Performer at CIBC
Compugen (CGEN) initiated with a Buy at Jefferies
Encana (ECA) initiated with a Sector Performer at CIBC
Epigenomics (EPGNY) initiated with a Buy at Maxim
Hyperion Therapeutics (HPTX) initiated with a Buy at Cantor
ITT Corp. (ITT) initiated with a Buy at SunTrust
Imperial Oil (IMO) initiated with a Sector Performer at CIBC
Mattress Firm (MFRM) initiated with a Buy at Jefferies
Meru Networks (MERU) initiated with a Buy at Mizuho
Ruckus Wireless (RKUS) initiated with a Buy at Mizuho
Suncor (SU) initiated with an Outperformer at CIBC
Susser Holdings (SUSS) initiated with a Hold at Jefferies
Talisman Energy (TLM) initiated with an Underperformer at CIBC

COMPANY NEWS

Och-Ziff Capital (OZM) warned over probes by DOJ, SEC
Peugeot (PEUGY) nominateed Louis Gallois to become chairman of supervisory board
Shah Capital, which holds a 5.64% stake in Corinthian Colleges (COCO), sent a letter to the company’s board outlining strategic initiatives the company should undertake, including evaluating possible sale of non-core assets and a headcount reduction
Activist funds Corvex and Related said 81% of CommonWealth REIT (CWH) holders approve of their proposal to remove the entire board of the company
Nu Skin (NUS) disclosed in a filing with the SEC that it has received inquiries from regulators in China, which it said may result in sanctions against the company
Exact Sciences (EXAS) said a clinical trial of its Cologuard test, which it co-developed with the Mayo Clinic, showed unprecedented rates of precancer and cancer detection by a noninvasive test
Boeing (BA) said it sees new aircraft financing market remaining strong

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Renren (RENN), SolarCity (SCTY), Pacific Sunwear (PSUN)

Companies that missed consensus earnings expectations include:
Oracle (ORCL), Elbit Systems (ESLT), Global Brass & Copper (BRSS), Aerie Pharmaceuticals (AERI), Veracyte (VCYT)

NEWSPAPERS/WEBSITES

Source: JPMorgan (JPM) to sell commodities business to Mercuria, WSJ reports
Toyota (TM) to pay $1B to settle acceleration probe with DoJ, CNN says
Sony's (SNE) virtual reality headset to be used with PS4, AP reports
Barclays (BCS) reportedly planning sale of index unit valued at $400M, Bloomberg says
GameStop (GME) can survive Wal-Mart (WMT) entry into used-game market, Barron's says
Blackstone (BX) considering higher bid for Gates Global, Reuters reports
Transcanada (TRP) under fire for Energy East pipeline, Globe and Mail says
Monitor says four large banks (BAC, JPM, C, WFC) met their commitments under a 2012 nationwide mortgage settlement, NY Times says

SYNDICATE

American Eagle Energy (AMZG) 11M share Secondary priced at $6.60
Associated Banc-Corp (ASBC) files to sell $500M of common stock
Kindred Biosciences (KIN) files to sell $86.25M of common stock
Marchex (MCHX) files to sell 5.7M Class B shares
Orchid Island Capital (ORC) files to sell 4M shares of common stock
Paylocity (PCTY) 7.045M share IPO priced at $17.00
Relypsa (RLYP) files to sell $100M in common stock
Rubicon (RBCN) files to sell common stock for holders
TherapeuticsMD (TXMD) files to sell 9M shares of common stock for holders

 

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Wed, 03/19/2014 - 07:52 | 4566878 Sudden Debt
Sudden Debt's picture

Israeli airstrikes kill 1 Syrian soldier, wound 7

 

to bad it's not the other way arround or it would be world war III V.9.234

Wed, 03/19/2014 - 07:55 | 4566881 buzzsaw99
buzzsaw99's picture

It was probably a woman, a baby, and a puppy. It's all the same to them.

Wed, 03/19/2014 - 08:35 | 4566984 SWRichmond
SWRichmond's picture

"Our Western partners headed by the United States prefer not to be guided by international law in their practical policies, but by the rule of the gun," he told a joint session of parliament.

The entire system, anywhere it exists, of "government" is built on force, and built and supported by people who not only do not shy away from using force, but revel in it.  They glory in it.  They love it.  Putin, of course, is one of them, but in this instance has refrained from the kind of mass killings that a Western-style invasion normally indulges.

In this we learn a lesson: when you are surrounded by sociopaths who relentlessly seek and acquire power, glory, wealth and murder, there is no peaceful path to liberty for the average person who seeks only to live and let live.  That should be obvious by now.

Wed, 03/19/2014 - 07:58 | 4566884 XAU XAG
XAU XAG's picture

@SD

You beat me to it!

Wed, 03/19/2014 - 07:57 | 4566882 XAU XAG
XAU XAG's picture
  • Israeli airstrikes kill 1 Syrian soldier, wound 7 (AP)

Just in case you missed it!

Wed, 03/19/2014 - 08:08 | 4566901 agent default
agent default's picture

And you missed the best.  Ukraine moves to tax bank deposits interest and ban foreign currency accounts.

http://www.tax-news.com/news/Ukraine_Parliament_To_Consider_25_Deposit_T...

Bank run in 3,2,1.

 

 

Wed, 03/19/2014 - 08:15 | 4566921 XAU XAG
XAU XAG's picture

Ukraine's parliament is to consider draft laws which would ban foreign-currency bank deposits and introduce a 25% tax on interest on deposits in banks and other financial institutions in circumstances where the interest received is more than 5% above the rate set by the National Bank of Ukraine. - See more at: http://www.tax-news.com/news/Ukraine_Parliament_To_Consider_25_Deposit_T...

 

Comming to your bank sooooooooooooooooon

Wed, 03/19/2014 - 08:30 | 4566963 SWRichmond
SWRichmond's picture

"...government of the banks, by the banks, and for the banks shall not perish from the earth..."

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