Frontrunning: December 31

• Behind the Scenes at Sony as Hacking Crisis Unfolded (WSJ)
• Oil Set for Biggest Slump Since 2008 as OPEC Battles U.S. Shale (BBG)
• Praet Warning of Oil Effects Signals Higher Chance of ECB QE (BBG)
• U.S. Opening Door to More Oil Exports Seen Foiling OPEC Strategy (BBG)
• Venezuela confirms recession, inflation hits 63.6 percent in Nov (Reuters)
• U.S. to station 150 armored vehicles in Europe (Reuters)
• China Stocks Rise to Finish Off Big Year (WSJ)
• RBS Suspends Bonuses of 18 Traders Amid FX Rigging Fine (BBG)
• ECB's Draghi says euro zone must 'complete' monetary union (Reuters)
• Saudi stock index down 5 pct; King Abdullah admitted to hospital (Reuters)
• UK property prices grow at slowest rate in more than a year (Times)
• Greek Polling Points to Coalition as Voters Reject System (BBG)

Overnight Media Digest

WSJ

* The day after Sony Pictures employees discovered that company email was unusable following a cyberattack, senior executives came up with an old-style communication network: a phone tree, in which updates on the hack were relayed from person to person. (http://on.wsj.com/1wzl90v)

* Harold Hamm, the chief executive of Continental Resources Inc, is contesting his November divorce settlement, saying an Oklahoma judge's order to pay his ex-wife nearly $1 billion is too rich. (http://on.wsj.com/1Bhg8hy)

* Fosun International Ltd has agreed to buy Meadowbrook Insurance Group Inc for about $433 million, a deal that expands the Chinese conglomerate's core insurance business and opens the door to the U.S. property and casualty market. The $8.65-a-share offer represents a 21 percent premium over Meadowbrook's $7.13 closing price on Tuesday. (http://on.wsj.com/1CSsz7u)

* The White House pushed back against criticism from some cybersecurity experts who have challenged the government's conclusion that North Korea was behind the hacking of Sony Pictures Entertainment Inc. On Monday, engineers from Norse Corp, a cybersecurity firm, met with FBI officials to lay out their own theory that a small hacking gang including former Sony employees was involved in the cyberattack on Sony, said Norse Vice-President Kurt Stammberger. (http://on.wsj.com/1xf6AUZ)

* Thirty-six states are now experiencing high levels of flu activity, according to the Centers for Disease Control and Prevention in Atlanta, as this year's flu vaccine may not fully protect against a strain known as influenza A H3N2 that is currently circulating and tends to be more severe. (http://on.wsj.com/1vqSrhZ)

* The U.S. Labor Department's wage law enforcer is being confronted with issues including the growth of outsourcing and changes in the independent workforce, controversies over the legal definition of an "employer" at companies like McDonald's Corp and their franchisees, and a flurry of activism on the minimum wage. (http://on.wsj.com/1EGOyAi)

* The New Hampshire company that fell into bankruptcy following a failed deal with Apple Inc is asking to pay millions in bonuses to its senior executives. Pay enhancement is necessary to motivate "the key drivers" in GT Advanced Technologies Inc's bid to restore its business in bankruptcy, lawyers said. (http://on.wsj.com/1zOrk8a)

FT

Google's Gmail service was partly restored in mainland China after a four-day outage, but it raised serious concerns over Beijing's influence over international communication services.

The U.S. government will allow more exports of ultralight oil from the country's shale drilling boom, which will bring a welcome relief to domestic exporters affected by falling crude oil prices.

British oil and gas major BP has started investigating allegations of its in-house traders being involved in rigging the foreign exchange market that made some of the biggest banks in the U.S. and Britain pay as much as $4.3 billion in fines.

China's two biggest train manufacturers, CSR Corp and China NCR, have agreed to merge to create a global giant with a combined market cap of $26 billion. The move is part of a strategy by Beijing to compete with Canadian, European and Japanese rivals.

NYT

* Interviews suggest that Sony - slow to realize the depths of its peril - let its troubles deepen by mounting a public defense only after enormous damage had been done. (http://nyti.ms/1vFnp79)

* Spurred by a decade-old ignition-switch defect in millions of General Motors vehicles, the auto industry this year has issued more recalls involving old models - those made five or more years ago - than ever before, an analysis of federal recall records by the newspaper shows. (http://nyti.ms/1x2YGhy)

* Michael Froman, the United States trade representative, is confident he can persuade Congress to approve a long-pending trade agreement that encompasses 12 countries. (http://nyti.ms/1wzPrQA)

* A team of curators for the Snapchat app, whose messages are meant to disappear after a period of time, will compile photos and videos from users at celebrations this New Year's Eve in cities around the world to create a documentary like presentation. (http://nyti.ms/1BlEaHX)

Canada

THE GLOBE AND MAIL

** Bombardier Inc has won a significant order for its aging regional jet aircraft, a welcome win ahead of what will be heightened competition from key rivals over the next decade. The Montreal-based plane and train maker said Tuesday that it signed a firm order for 24 CRJ900 NextGen planes to an undisclosed customer. Based on list prices, the order is worth about $1.14 billion. (http://bit.ly/1xvvYHQ)

** As radiation from the Fukushima nuclear power-plant disaster drifted across the Pacific, fears that salmon and other marine life could be contaminated spread along the British Columbia coast. But samples gathered by citizen scientists and a more comprehensive study done by Fisheries and Oceans Canada indicate the levels of radiation are so low they pose almost zero risk to human or ecosystem health. (http://bit.ly/1xxnWLw)

** Toronto Police Chief Bill Blair says he's "optimistic" about the force under a new board, and is making plans for his own future after policing - saying he'd like to continue serving the public and is not ruling out the possibility of a career in politics. (http://bit.ly/1AaaCOi)

NATIONAL POST

** Edmonton police say a man who killed six adults and two young children before taking his own life had a lengthy criminal record. At a news conference late Tuesday night, police Chief Rod Knecht said the motive for the mass murder appears to have been domestic violence. (http://bit.ly/1K163ex)

** Patients with flu-like symptoms are flooding many Canadian emergency departments, adding to chronic backlogs and prompting some hospitals to suggest people should go elsewhere for help. Flu cases are peaking somewhat earlier in parts of the country, while the flu vaccine appears a less-than-optimal match to this year's viruses. (http://bit.ly/1y5ytjX)

Britain

The Times

EBOLA NURSE WAS CLEARED AFTER TESTING 'SHAMBLES'

A nurse infected with ebola was tested seven times at Heathrow before being cleared to fly home to Glasgow, it emerged yesterday, as Britain's first line of defence against the virus was branded "shambolic". (http://thetim.es/1D4L320)

UK PROPERTY PRICES GROW AT SLOWEST RATE IN MORE THAN A YEAR

British house prices rose at their slowest rate in more than a year this month, according to Nationwide, in a further sign of a property slowdown. House prices in the UK increased 7.2 per cent in the year to December, the smallest annual increase since November 2013. (http://thetim.es/1A9cYwW)

The Guardian

NETWORK RAIL BOSS WILL NOT TAKE BONUS AFTER CHRISTMAS RAIL DISRUPTION

Mark Carne, the embattled chief executive of Network Rail, has said he will not take his bonus amid an outcry over major rail disruption over the Christmas period. (http://bit.ly/1D4Lkly)

AID CHARITIES HIT BY BANKS' FEAR OF TERRORISM FINES

Charities working in crisis-hit regions are failing to receive millions of pounds in funding because of banks' fears of incurring tough penalties for failing to stop the flow of terrorist funds and money laundering, according to a report. (http://bit.ly/13I13dy)

The Telegraph

BP INVESTIGATED FOREX TRADERS AMID 'CARTEL' FIXING CLAIMS

BP PLC has investigated whether traders on its foreign exchange desk were involved in the manipulation of the $5.3 trillion a day currency market, it emerged on Tuesday night. (http://bit.ly/1B2R8fK)

BRENT OIL HITS NEW LOW AS OPEC PRICE WAR DEEPENS SLUMP

Brent crude plunged below $57 per barrel briefly on Tuesday, marking a new five-and-a-half-year low as traders bet that the global oversupply of oil will continue deep into 2015. (http://bit.ly/1txYEPh)

Sky News

EBOLA NURSE COULD BE GIVEN BLOOD FROM SURVIVOR

A nurse being treated for Ebola at a London hospital could be given blood donations from survivor Will Pooley to overcome the deadly virus. (http://bit.ly/1rycZKc)

THATCHER WAS WARNED 'BIG BANG' WOULD GO BAD

Margaret Thatcher was warned about the dangers of deregulating the banks prior to the Big Bang of 1986, according to files released by the National Archives. Robert Armstrong, the Cabinet secretary, expressed fears of "unscrupulous" money-making and "a bubble that will be pricked in a year or two". (http://bit.ly/1zuAhOO)

The Independent

LABOUR SHUNS BLACK AND ASIAN CANDIDATES IN WINNABLE SEATS

Ed Miliband is facing calls from within his own party to take action to secure the election of more black and Asian Labour MPs, amid signs that key constituencies are shunning candidates from ethnic minorities. (http://ind.pn/1zODQEM)

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Jobless claims for week of Dec. 27 at 8:30--consensus 286K
Chicago PMI for December at 9:45--consensus 60.8
Pending home sales for November at 10:00--consensus up 0.5%
DOE petroleum status report for week of Dec. 26  at 10:30
EIA natural gas storage change for week of Dec. 26 at 12:00

ANALYST RESEARCH

Upgrades
GrubHub (GRUB) upgraded to Outperform from Market Perform at Barrington

Downgrades

Meadowbrook Insurance (MIG) downgraded to Neutral from Buy at Compass Point
Perion Network (PERI) downgraded to Neutral from Buy at Chardan

Initiations

Par Petroleum (PARR) initiated with a Buy at Miller Tabak

COMPANY NEWS
Walgreen (WAG) and Alliance Boots completed Step 2 of their strategic partnership to form Walgreens Boots Alliance (WBA), finalizing the two-step merger launched in 2012
T-Mobile (TMUS) CEO sees Apple Watch (AAPL) as “tipping point” for wearables
Handy & Harman (HNH) submitted proposal to acquire JPS Industries (JPST) for $10 per share
Meadowbrook Insurance (MIG) to be acquired by Fosun for $8.65 per share

EARNINGS
MiMedx (MDXG) sees Q4, FY14 revenue exceeding upper end of forecast. The company also backed its FY15 revenue view $175M-$190M, consensus $181.71M

NEWSPAPERS/WEBSITES
Sony Entertainment (SNE) CEO says hackers erased data, WSJ reports
Wal-Mart (WMT) finding success in Mexico with chain of mini-grocers, WSJ reports
Samsung (SSNLF) set to launch Series 9 Ultrabook laptop at CES, ZDNet reports (INTC, AAPL)
American Apparel (APP) said to be delaying payments to its suppliers, NY Post reports
FBI probes whether U.S. banks are launching own cyberattacks, Bloomberg reports (JPM, GS, BAC, C, MS, USB, WFC)

SYNDICATE
Globalstar (GSAT) files to sell 12.37M shares of common stock for holders
Lime Energy (LIME) raises $10M in a direct offering
Oncothyreon (ONTY) files $150M mixed securities shelf
Organovo (ONVO) may sell up to $33M of stock in Controlled Equity Offering
RadNet (RDNT) files $200M mixed securities shelf, files to sell 3M shares of common stock for holders

Comments

[buzzsaw99]

north korea is lucky. we've bombed people on flimsier evidence than that.

[Sudden Debt]

QE for Europe because of the oilprice drop...

EUROPE DOESN'T HAVE A OIL DRILLING SECTOR WORTH WHILE!!!!!!

FOR EUROPE CHEAP OIL IS A BLESSING!!!

[Ghordius]

+1 all excuses are good to ask for "moar", eh?

[junction]

From WSJ: "In the fall of 2013, Sony switched monitoring of its cybersecurity equipment from an outside company to an in-house team, according to an audit report from September 2014 included in leaked emails. It appeared that monitoring of one firewall and 148 other pieces of computer gear was lost in the shuffle." 

So, Sony decided not to renew its anti-spyware program, no different than a consumer who lets the spyware program lapse after the trial period.  Sony is now full of baloney trying to explain this hack, made after Sony decimated its IT staff earlier this year.  The same Sony that is a big driver in the plans to install Communist China type censorship of the Internet with the Trans Pacific Partnership, now that SOPA bit the dust.

[Catullus]

Is President Moonbat going to admit that he didn't know shit when he made the statements on the Sony hack?

NOPE.

This is how the world works now: get out in front of a story with your narrative. Facts don't matter.

[dizzyfingers]

IMF Loan Policies Hindered Ebola Response, U.K. Researchers Say