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Frontrunning: August 28

Tyler Durden's picture




 
  • Clearly it's time to bomb Assad (on Qatar instructions): Islamic State executes dozens of Syrian army soldiers (Reuters)
  • Ukraine Declares Russian Invasion as Sanctions Threat Raised (BBG)
  • Ukraine Reports Russian Invasion on a New Front (NYT)
  • German Unemployment Rises as Risks to Economy Build (BBG)
  • Ebola spreads to Nigeria oil hub Port Harcourt (BBC)
  • FBI Probes Possible Hacking Incident at J.P. Morgan (WSJ)
  • FBI, Secret Service investigate reports of cyber attacks on U.S. banks (Reuters)
  • If you like your Venezuela, you can stay in Venezuela: Airlines Abandon Fliers Amid Currency Dispute (WSJ)
  • Boomer Wealth Dented by Mortgages Poses U.S. Risk (BBG)
  • People Aren't Buying Guns (BusinessWeek)
  • Icelandic Bardarbunga Volcano Update: Fractures, Sinkholes Spotted During Research Flight (Weather Channel)
  • Silva Shakes Up Brazilian Election (FT)
  • Samsung unveils smartwatch that can make calls (Reuters)

 

Overnight Media Digest

WSJ

* The Islamic State runs a self-sustaining economy across territory it controls in Syria and Iraq, pirating oil while exacting tribute from a population of at least eight million, Arab and Western officials said, making it one of the world's richest terror groups and an unprecedented threat. (http://on.wsj.com/1lg9Qvt)

* The Federal Bureau of Investigation is probing a computer-hacking attack on J.P. Morgan Chase & Co and as many as four other banks, in what people familiar with the probe described as a significant breach of corporate computer security. (http://on.wsj.com/1td4fso)

* Argentina's international reserves are starting to dwindle in the wake of the country's second sovereign-debt default in almost 13 years, putting added stress on the peso and an economy believed to be in recession. (http://on.wsj.com/1zHU1Pu)

* Alibaba Group Holding Ltd <IPO-BABA.N> reported big growth in revenue from mobile devices, which may bolster its case next month when the Chinese e-commerce giant begins to pitch investors on its long-awaited initial public offering. (http://on.wsj.com/1qAtKl3)

* A federal judge on Wednesday denied a request from Apple Inc to bar Samsung Electronics Co from selling smartphones and tablets in the United States that infringe on Apple patents. Apple had sought a permanent injunction against certain Samsung products after a judge and jury found in May that the Korean firm had infringed on three of its patents in a high-profile intellectual property dispute. (http://on.wsj.com/1tEPAVN)

* With Venezuela holding back on releasing $3.8 billion in airline-ticket revenue because of strict currency controls, Delta Air Lines Inc, American Airlines Group Inc and other airlines have slashed service to Venezuela by half since January. (http://on.wsj.com/1pjKopL)

 

FT

The head of the International Monetary Fund, Christine Lagarde, is facing a formal investigation by a French court for alleged negligence in a political fraud affair dating from 2008 when she was finance minister.

The European Central Bank has hired BlackRock Solutions to provide consultancy services in its preparations for a programme to buy asset-backed securities.

Sales at Tesco slipped 4 percent on a quarterly basis according to industry data, highlighting the wounds inflicted by the supermarket price war on Britain's No.1 grocer.

The battle for Brazil's telecoms market is hotting up after one of the country's largest phone companies, Grupo Oi SA , unveiled plans to take over Telecom Italia's local mobile business.

Europe's largest budget carrier Ryanair is set to offer "business class" service on all of its flights as it tries to gain a bigger share of the European corporate travel market.

Fashion chain Zara, owned by Spain's Inditex, pulled from sale on Wednesday a striped children's top decorated with a large six-pointed star following public outcry that it resembled clothing worn by inmates in Nazi concentration camps during the Holocaust.

 

NYT

* A number of United States banks, including JPMorgan Chase & Co and at least four others, were struck by hackers in a series of coordinated attacks this month, according to four people briefed on a continuing investigation into the crimes. (http://nyti.ms/VREJu6)

* Christine Lagarde, the head of the International Monetary Fund, said on Wednesday that French prosecutors had placed her under formal investigation, in an escalation of a long-running inquiry into a murky business affair that dates to her time as finance minister under President Nicolas Sarkozy. (http://nyti.ms/1sBSnfy)

* With less than a month before its initial public offering, the Alibaba Group Holding Ltd <IPO-BABA.N> is intent on showing just how profitable - and focused on mobile - it truly is. The Chinese e-commerce behemoth disclosed on Wednesday that its profit nearly tripled in the quarter that ended June 30, to $2 billion. Its sales climbed 46 percent, to $2.5 billion. (nyti.ms/1tXKbHr)

* A British regulator fined Royal Bank of Scotland Group PLC 14.5 million pounds, or about $24 million, on Wednesday for failing to offer proper advice to mortgage customers, and criticized the bank for its delays in responding to the initial complaints. (nyti.ms/1qgvMFK)

* Tyson Foods Inc has reached a deal with the U.S. Justice Department to sell its hog-purchasing business as part of its planned $7.7 billion acquisition of Hillshire Brands Co . The Justice Department said Wednesday that it would require Tyson to sell its Heinold Hog Markets unit to win antitrust approval for the merger. (nyti.ms/1rBpkwM)

* Lawmakers and governor Jerry Brown of California on Wednesday said they had reached an agreement to expand the California film incentive program, capping a drive by entertainment industry unions, filmmakers and executives to bolster sagging movie and television production in the state. (http://nyti.ms/1qiJBn7)

* The Securities and Exchange Commission unanimously approved rules on Wednesday that would require issuers of asset-backed securities - complex investments based on mortgages, auto loans or other types of debt - to disclose more information about the underlying loans. (nyti.ms/1nFOJ14)

* Chiquita Brands International and Fyffes PLC tried to reassure investors about their planned merger, saying on Wednesday that they now expected the combined company to achieve an additional $20 million in annual cost savings by 2016. (nyti.ms/1leh17k)

* The federal government is expected to finish its fiscal year with a relatively modest budget deficit as the gap between revenue and spending continues a sharp decline, the Congressional Budget Office said Wednesday. (http://nyti.ms/1q6GjEO)

 

China

CHINA SECURITIES JOURNAL

- Yu Shengfa, vice president of e-commerce giant Alibaba's <IPO-BABA.N> future financial company, said the company has submitted applications to related regulators to set up "Ali Bank" which could be approved in September.

SHANGHAI SECURITIES NEWS

- Shanghai's municipal government has published a document outlining its strategies to develop the city into a global trading centre, including plans to build international trading platforms for commodities such as natural gas and iron ore in its free-trade zone.

SECURITIES TIMES

- China could implement real estate registration system in 2017, said Leng Hongzhi, an official at the Ministry of Land and Resources.

CHINA DAILY

- Lenovo Group Ltd will soon settle a year-old class action lawsuit over laptop malfunctions in the United States for approximately $70 million.

Britain

The Times

SALMOND'S SCOTLAND WILL LIVE IN ETERNAL POVERTY, SAYS BROWN

Inequality and poverty could "survive until doomsday" if Alex Salmond wins Scotland's independence referendum, according to former British Prime Minister Gordon Brown.

TESCO'S WOES DEEPEN AS SHOPPERS CHECK OUT

Sales at Britain's largest supermarket group have plunged and its market share has slipped again, highlighting the challenge facing Dave Lewis, Tesco's incoming chief executive.

The Guardian

DAVID CAMERON MULLS JOINING OBAMA IN BOMBING ISIS IN IRAQ

David Cameron is planning to indicate to U.S. President Barack Obama and other NATO leaders at a summit in Wales next week that Britain is keeping open the option of joining the United States in launching air strikes against forces of the Islamic State in Iraq.

CHRISTINE LAGARDE TO BE INVESTIGATED FOR ALLEGED ROLE IN POLITICAL FRAUD CASE

The head of the International Monetary Fund, Christine Lagarde, has been charged with "simple negligence" over her handling of a controversial 400 million euro payout to French business tycoon Bernard Tapie when she was finance minister.

The Telegraph

DECLARE THE SOCIAL MIX OF YOUR STAFF, BRITISH COMPANIES TOLD Alan Milburn, head of the Social Mobility and Child Poverty Commission, condemns the scale of "elitism" at the top of British public life as he calls for companies to engineer a more socially balanced workforce.

Sky News

RYANAIR LAUNCHES 'BUSINESS CLASS' BENEFITS The no-frills carrier sees advantages of offering the business traveller a more flexible experience as part of its new approach.

 

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Second estimate of Q2 GDP at 8:30--consensus up 4.0%
Jobless claims for week of August 23 at 8:30--consensus 300K
Pending home sales index for July at 10:00--consensus up 0.5% for the month

ANALYST RESEARCH

Upgrades

Cott Corp. (COT) upgraded to Buy from Hold at Stifel
First Horizon (FHN) upgraded to Outperform from Market Perform at Keefe Bruyette
National Bank of Canada (NTIOF) upgraded to Perform from Underperform at Oppenheimer
Randgold Resources (GOLD) upgraded to Neutral from Underweight at HSBC

Downgrades

Brown Forman downgraded to Hold from Buy at Deutsche Bank
GT Advanced (GTAT) downgraded to Underperform from Market Perform at Raymond James
Genuine Parts (GPC) downgraded to Neutral from Buy at SunTrust
InterMune (ITMN) downgraded to Neutral from Buy at UBS
Sungy Mobile (GOMO) downgraded to Perform from Outperform at Oppenheimer
Visa (V) downgraded to Market Perform from Outperform at Raymond James
Williams-Sonoma (WSM) downgraded to Equal Weight from Overweight at Morgan Stanley

Initiations

Advance Auto Parts (AAP) initiated with a Buy at SunTrust
Allstate (ALL) initiated with a Neutral at Compass Point
AutoZone (AZO) initiated with a Neutral at SunTrust
Cooper Tire (CTB) initiated with a Neutral at SunTrust
Farmland Partners (FPI) initiated with an Outperform at FBR Capital
FireEye (FEYE) initiated with a Buy at Stifel
GasLog Partners (GLOP) initiated with an Overweight at Barclays
Goodyear Tire (GT) initiated with a Buy at SunTrust
ITC Holdings (ITC) coverage resumed with an Equal Weight at Barclays
Mercury General (MCY) initiated with a Neutral at Compass Point
Monro Muffler (MNRO) initiated with a Reduce at SunTrust
Monro Muffler (MNRO) initiated with a Reduce at SunTrust
O'Reilly Automotive (ORLY) initiated with a Buy at SunTrust
PGT, Inc. (PGTI) initiated with a Neutral at SunTrust
Safety Insurance (SAFT) initiated with a Buy at Compass Point
WEX Inc. (WEX) initiated with a Hold at Deutsche Bank
Whole Foods (WFM) initiated with a Neutral at Wedbush

COMPANY NEWS
DuPont (DD) to pay $1.28 to resolve toxic gas leak allegations with DOJ, EPA
Deutsche Bank (DB) fined GBP4.7M by FCA for failing to properly report transactions
CME Group (CME) promoted John Pietrowicz to CFO
China Recycling Energy (CREG) chairman said its chairman made additional $18.9M investment in the company
Lear (LEA) signed a definitive agreement to acquire Eagle Ottawa for $850M
Keurig Green Mountain (GMCR) announced the appointment of José Octavio Reyes Lagunes, the retired vice chairman of The Coca-Cola Export Corporation (KO), to its board effective August 25

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Violin Memory (VMEM), Workday (WDAY)

Companies that missed consensus earnings expectations include:
Coty (COTY), Greif (GEF), Exa Corp. (EXA), Sungy Mobile (GOMO), Guess (GES), Bally Technologies (BYI), Gordmans Stores (GMAN)

Companies that matched consensus earnings expectations include:
Williams-Sonoma (WSM), Jiayuan.com (DATE), DHT Holdings (DHT), Casella Waste (CWST), Tilly's (TLYS)

NEWSPAPERS/WEBSITES

Hackers targeted JPMorgan Chase (JPM), 'at least' four other banks, NY Times reports
FBI investigating whether Russia involved with JPMorgan (JPM) hacking, Bloomberg says
GSK (GSK), Shire (SHPG) rumored to be interested in Tekmira (TKMR), Daily Mail says
Samsung (SSNLF) hit by new allegations of child labor in China, FT reports
Samsung (SSNLF), Lenovo (LNVGY) China supplier rejects child labor claims, Reuters says
Judge denies Apple (AAPL) request to block sale of Samsung (SSNLF) devices, AP says
Tiffany (TIF) stock should continue higher, Barron's says

SYNDICATE

Castle Brands (ROX) files $30M mixed securities shelf
Gramercy Property Trust (GPT) files to sell 22.24M shares of common stock
Nordstrom (JWN) files to sell common stock, no amount given
Orient Paper (ONP) raises $2.5M in a registered direct offering
Tiffany (TIF) files automatic mixed securities shelf

 

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Thu, 08/28/2014 - 08:20 | 5153076 Tenshin Headache
Tenshin Headache's picture

WHO finally got something out on Ebola. Does not include new outbreak in DR Congo:

As of 26 August 2014, the cumulative number of cases attributed to EVD in the four countries stands at 3 069, including 1552 deaths. The distribution and classification of the cases are as follows: Guinea, 647 cases (482 confirmed, 141 probable, and 25 suspected), including 430 deaths; Liberia, 1378 cases (322 confirmed, 674 probable, and 382 suspected), including 694 deaths; Nigeria, 17 cases (13 confirmed, 1 probable, and 3 suspected), including 6 deaths; and Sierra Leone, 1026 cases (935 confirmed, 37 probable, and 54 suspected), including 422 deaths.

http://www.who.int/csr/don/2014_08_28_ebola/en/

Thu, 08/28/2014 - 09:10 | 5153308 SWRichmond
SWRichmond's picture

People Aren't Buying Guns

Still can't get powder in stores or online.  Varget and 2000-MR are impossible to get.

Thu, 08/28/2014 - 09:27 | 5153356 NoWayJose
NoWayJose's picture

Either someone is still squeezing supplies or what we are seeing is that the people who already own guns are stocking up on re-loading equipment and ammo.

Thu, 08/28/2014 - 08:09 | 5153080 buzzsaw99
buzzsaw99's picture

funny how hackers can export terabytes from corporate computers and those corporate computers just go yeah, fuck, take it all, we don't care. trust nothing. you'll also notice that it is always the customer's data which gets stolen, not the "dirty" books, or pictures of dimon's junk.

Thu, 08/28/2014 - 08:51 | 5153257 Leraconteur
Leraconteur's picture

You know why?

Because the Controller (not the CFO!) has a laptop, and he (it usually is a ''he'') uses it to run the cooked books. The important stuff he does, is not on the network or with the data entry the clerks are doing, and that laptop does not get connected to anything, ever.

USB Ctrl-V to his laptop each night.

Payroll, which needs to be attached to a network printer, is done on another machine.

When he leaves, he deletes everything, 35-pass overwrites it, and then tosses the hard drive into a lava flow.

You *could* recover it, but you would need to electron microscope it.

Thu, 08/28/2014 - 08:08 | 5153098 stant
stant's picture

Trim tabs biderman is bullish stocks ala cnbc this morn, so lookout

Thu, 08/28/2014 - 08:12 | 5153112 Whoa Dammit
Whoa Dammit's picture

Atlanta police officer kidnaps and murders a woman, then sets her body on fire in the street: ( It was Elm Street by the way)

http://www.wsbtv.com/news/news/local/apd-officer-wanted-murder-hapeville...

Thu, 08/28/2014 - 08:20 | 5153129 TradingFinn
TradingFinn's picture

So it's... buy?

Thu, 08/28/2014 - 08:26 | 5153149 Tell me lies
Tell me lies's picture

I am a great american and want to fight against them evil ??? Which ISIS do sign up for to kill? John Mc Crazy faction or Cheese pope or made for u tubes?

Thu, 08/28/2014 - 08:49 | 5153239 Cthonic
Cthonic's picture

Smoothed new case rate:

 

28 Aug 14 - 69/day

22 Aug 14 - 59/day

20 Aug 14 - 54/day

19 Aug 14 - 46/day

15 Aug 14 - 54/day

13 Aug 14 - 40/day

11 Aug 14 - 37/day

08 Aug 14 - 54/day

06 Aug 14 - 55/day

04 Aug 14 - 57/day

02 Aug 14 - 43/day

29 Jul 14 - 38/day

27 Jul 14 - 23/day

23 Jul 14 - 12/day

17 Jul 14 - 10/day

Morbidity: 54%

Partial: 5.5% per day

(28 Aug release contains data through 26 Aug).

http://www.afro.who.int/en/clusters-a-programmes/dpc/epidemic-a-pandemic-alert-and-response/outbreak-news.html

Thu, 08/28/2014 - 08:53 | 5153264 Leraconteur
Leraconteur's picture

I am not liking that 21-day gap and surge, elevating case numbers each 3-weeks.

Not one bit.

Thu, 08/28/2014 - 09:19 | 5153311 Cthonic
Cthonic's picture

Guess this guy didn't relish the idea of becoming the next medivac spectacle:

http://www.myfoxatlanta.com/story/26385598/cdc-worker-returns-from-west-...

According to CDC officials, the staff member worked near the ill person for a long period of time when that individual had symptoms.  The CDC worker returned by a charter flight and will be monitored for 21 days.

“The CDC staff person is not sick with Ebola, does not show symptoms of the disease and, therefore, poses no Ebola-related risk to friends, family, co-workers, or the public,” said the CDC in a statement released on Wednesday.

Thu, 08/28/2014 - 09:35 | 5153382 Whoa Dammit
Whoa Dammit's picture

Here's the scary part "CDC officials say the exposed staffer is not restricted to staying at home and can return to assigned work duties during the 21-day symptom monitoring period.."

http://www.myfoxatlanta.com/story/26385598/cdc-worker-returns-from-west-...

Thu, 08/28/2014 - 10:27 | 5153573 Cthonic
Cthonic's picture

Don't worry, contact tracing will be a snap as they all frequent the same topless bar.

Thu, 08/28/2014 - 11:40 | 5153957 Leraconteur
Leraconteur's picture

Look at the resources brought to bear for TWO patients.

If this gets bigger, we are so screwed.

 

How many doctors and nurses were on your team caring for these two Ebola patients?
Twenty-one nurses, five physicians and we had the support of hundreds. Just making sure all the disposables coming out of those rooms were sterilized before we put them on the federal highway system, for example—we had to certify to the contractor that takes our regulated medical waste that it didn’t have active Ebola virus inside it. We didn’t have the equipment to handle all of the waste but in two hours facilities brought in industrial autoclaves [which sterilize materials with extreme heat] to replace the system that we had. We would have been drowning in garbage without them.

 


Thu, 08/28/2014 - 09:14 | 5153321 Azannoth
Azannoth's picture

"Islamic State executes dozens of Syrian army soldiers" - as the old Army saying goes "If you run you die tired"

Thu, 08/28/2014 - 09:29 | 5153360 NoWayJose
NoWayJose's picture

And the new ISIS version - If you surrender you die 'tied'

Thu, 08/28/2014 - 13:42 | 5154714 Otto Zitte
Otto Zitte's picture

Jerry Brown has totally lost it

Last seen offering flowers to wolves at vacated Yosemite caldera...

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