This page has been archived and commenting is disabled.
Frontrunning: January 8
- French policewoman killed in shoot-out, hunt deepens for militant killers (Reuters)
- The Bold Charlie Hebdo Covers the Satirical Magazine Was Not Afraid to Run (BBG)
- Could Lower 10-Year Yields Spark A More Aggressive Fed? (Hilsenrath)
- Evans Says Fed Shouldn’t Rush Rate Rise as Inflation Undershoots (BBG)
- Oil holds above $51 as traders search for floor (Reuters)
- Gross Helps Fuel New Fund With His Own Cash (WSJ)
- ECB warns Greek funding access hinges on keeping bailout (Reuters)
- Greece Jolts QE Juggernaut as ECB Gauges Deflation Risk (BBG)
- Analysts Say There's No Telling How Low Oil Prices Could Go (BBG)
- Scientists find antibiotic that kills bugs without resistance (Reuters)
- Don’t Believe the Hype: Why Germany Needs Greece to Stay in Euro (BBG)
- World’s Best Forecaster Targets Euro-Dollar Parity (BBG)
- Riksbank Board Mulling Unconventional Policy, Minutes Show (WSJ)
- European retail sales surprisingly strong (FT)
- Fossil fuels: The 'untouchable reserves' (BBC)
- White House not under pressure to expand U.S. crude exports (Reuters)
Overnight Media Digest
WSJ
* Armed men stormed the Paris offices of Charlie Hebdo, a satirical magazine targeted in the past for its cartoons on Islam, leaving 12 people dead. Three suspects, all Frenchmen, were identified. One turned himself in to police; the two others remain at large. (http://on.wsj.com/1DzUMNV)
* Federal Reserve officials, worried about weak growth overseas, are endorsing new measures by foreign officials - most notably at the European Central Bank - to stimulate their economies. (http://on.wsj.com/1zVI9ci)
* A majority of the money raised in recent months by Bill Gross for new employer Janus Capital Group Inc came from the small Southern California brokerage office where one of his personal financial advisers works. (http://on.wsj.com/1HQrDQY)
* Standard Chartered Plc plans to shut its stock-trading and underwriting business, resulting in the loss of about 200 jobs, and it will shed another 2,000 retail banking jobs this year. (http://on.wsj.com/1HRc8sa)
* Samsung Electronics Co Ltd said profits likely declined for the fifth-straight quarter in the last three months of 2014, though strong sales of its premium Galaxy Note 4 smartphone-tablet hybrid helped limit the pain. (http://on.wsj.com/1BBTGlg)
FT
German chancellor Angela Merkel refused to endorse David Cameron's demand for a European treaty change, offering only limited support for the Prime Minister's bid to renegotiate Britain's relationship with the EU.
The Trades Union Congress wants tougher penalties for employers who repeatedly flout the law after the congress estimated a quarter of a million UK workers are being paid less than the legal minimum wage.
Andrew Tyrie, one of the fiercest critics of Bank of England governance, says the institution now has the structures in place to avoid some of the failings it demonstrated during the financial crisis.
British Prime Minister David Cameron was put on the defensive after the opposition party highlighted figures that showed the worst performance by emergency departments in England's hospitals since 2004.
NYT
* The United States has concluded that North Korea was behind the destructive attacks on Sony Pictures partly because the hackers failed to mask their location when they broke into the company's servers, FBI Director James Comey said on Wednesday. (http://nyti.ms/1xHVWXh)
* An official report showed that consumer prices in the eurozone fell 0.2 percent in December from a year earlier. The data adds to further concerns that Europe is headed for a new financial and economic crisis. Pressure is now mounting for the European Central Bank to take more aggressive action to avoid a downward price spiral that could undermine the economy for years to come. (http://nyti.ms/1ArITZm)
* Samsung Electronics Co Ltd on Thursday said its operating profit and revenue probably fell almost 40 percent in the quarter ending in December compared with the same period in 2013. Samsung's forecast signals the fifth consecutive quarter of decline in operating profit and reflects continuing troubles for its mobile division. (http://nyti.ms/1Fr1fiW)
* Federal regulators said that airlines would be required to develop new safety management programs by 2018 to help identify potential hazards and prevent accidents. The Federal Aviation Administration said airlines would have six months to submit these risk-based plans, known as safety management systems. (http://nyti.ms/1s7wMAr)
* The Environmental Protection Agency will force states to comply with a federal "model rule" to cut their carbon emissions if the states do not submit customized plans under the Obama administration's new climate change regulations, a senior official said. (http://nyti.ms/1BBXz9Z)
* An expert panel unanimously recommended that the Food and Drug Administration approve a cheaper copy of a special drug used in cancer therapy, paving the way for alternatives to an entire class of complex and costly drugs to enter the United States market. (http://nyti.ms/1Fr9Fqv)
Canada
THE GLOBE AND MAIL
** Porter Aviation Holdings Inc, the biggest operator of flights at Toronto's island airport, is nearing a deal to sell its passenger terminal to a group led by InstarAGF Asset Management Inc for more than C$750 million ($635 million), people with knowledge of the matter said. (http://bit.ly/1s85RUZ)
** Quebec's energy regulator is voicing support for TransCanada Corp's $12 billion Energy East pipeline project, but warns that the company must ensure natural gas customers don't pay for its switch to an oil conduit. (http://bit.ly/1xUk73p)
** Canadian pension plans are facing another weak year in 2015 with interest rates forecast to remain low and Canadian economic growth expected to trail global gross domestic product expansion. (http://bit.ly/1IunwbP)
NATIONAL POST
** Air Canada may stop flying out of the Billy Bishop Airport in downtown Toronto as part of a broader effort to cut costs, and rival WestJet Airlines Ltd could be interested in taking its spot. (http://bit.ly/1DyulrV)
** A 64-year-old woman will appear in court next month after a Royal Canadian Mounted Police investigation into a rash of vandalism and booby traps being set on a number of mountain bike trails in North Vancouver. (http://bit.ly/1zWcpUn)
** Plunging oil prices have made it almost too difficult to predict what will happen in the Calgary housing market, according to a new real estate forecast. (http://bit.ly/1AFWSw3)
Canada
CHINA SECURITIES JOURNAL
- China is expected to speed up the launch of the Shenzhen-Hong Kong Stock Connector this year, the paper reported, citing unidentified sources with direct knowledge of the matter.
- China Financial Futures Exchange published draft rules for its planned 10-year bond futures contract, the newspaper reported, citing a statement published on the exchange's website on Wednesday.
SHANGHAI SECURITIES NEWS
- China Insurance Regulatory Commission (CIRC) is seeking public opinion on a new rule that would allow insurance funds to entrust third parties to invest in government infrastructure projects on their behalf, the newspaper reported, citing unidentified sources with direct knowledge of the matter. Insurance funds have so far not been allowed to directly invest in government infrastructure projects.
- China has started to revise its insurance law for the first time since 2009. The revised law will raise the threshold of stakeholders in insurance companies, and broaden the areas in which insurance funds can invest.
PEOPLE'S DAILY
- The mouthpiece of the Communist Party of China has urged the Chinese government to maintain integrity and never allow corruption to become a stumbling block on the way to achieving progress.
Britain
The Times
Prices paid by consumers in the eurozone are falling for the first time in more than five years, according to new figures published yesterday that heaped more pressure on the European Central Bank to embark on the controversial stimulus of full-blown quantitative easing. (http://thetim.es/1BNaoN0)
It was celebrated for being the deal that created the world's first hip-hop billionaire, but the $3.2 billion sale of the Beats headphone range to Apple has sounded a sour note for one of its architects, who claims that he was duped out of millions of dollars. (http://thetim.es/1xSZh4m)
The Guardian
J Sainsbury Plc has suffered its worst Christmas in a decade with sales sliding by 1.7 percent - although the decline was smaller than the company had expected. (http://bit.ly/1s6K3cl)
British consumers bought more new cars in 2014 than in any year in the last decade as cheap finance deals and a growing economy fuelled confidence. (http://bit.ly/1zVbjIE)
The Telegraph
Tesco Plc is to sell its online movie streaming service Blinkbox to TalkTalk Telecom Group Plc for 5 million pounds ($7.55 million), and is expected to reveal its new UK chief executive on Thursday. (http://bit.ly/1tLrhCS)
Trainline.com, the train ticket retailer, is readying plans to become the first main market listing of 2015 when it unveils a float worth more than 500 million pounds on Thursday. (http://bit.ly/1tPwcIM)
Sky News
The new chief executive of Tesco will on Thursday set out a blueprint to revive its fortunes through a string of measures including the appointment of a new boss of its UK operations. (http://bit.ly/1AHdiV6)
The owner of the audit profession's bible, Accountancy Age, has reached agreement on a financial restructuring that will slash its debts after almost a year of talks. (http://bit.ly/1tPjGc6)
The Independent
Eurozone inflation has turned negative for the first time since 2009 as Brent crude oil briefly slipped below the $50-a-barrel mark. (http://ind.pn/1ByT3ci)
Troubled pensions provider Partnership Assurance is considering dipping into the debt markets after a torrid 2014 wiped about 650 million pounds from its value. (http://ind.pn/1AttBU3)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Jobless claims for week of Jan. 3 at 8:30--consensus 290K
EIA natural gas storage change for week of Jan. 2 at 10:30
Consumer Credit for November at 15:00--consensus up $15.0B
ANALYST RESEARCH
Upgrades
AB InBev (BUD) upgraded to Buy from Neutral at Nomura
AkzoNobel (AKZOY) upgraded to Outperform from Neutral at Credit Suisse
Alcatel-Lucent (ALU) upgraded to Outperform from Neutral at Credit Suisse
Boston Scientific (BSX) upgraded to Outperform from Market Perform at Leerink
Cummins (CMI) upgraded to Buy from Neutral at BofA/Merrill
Eli Lilly (LLY) upgraded to Buy from Hold at Jefferies
LabCorp (LH) upgraded to Overweight from Neutral at JPMorgan
MGM Resorts (MGM) upgraded to Outperform from Market Perform at Wells Fargo
MSC Industrial (MSM) upgraded to Outperform from Neutral at RW Baird
Molson Coors (TAP) upgraded to Buy from Neutral at Nomura
Mueller Water (MWA) upgraded to Outperform from Market Perform at Cowen
NuVasive (NUVA) upgraded to Outperform from Sector Perform at RBC Capital
Omnicare (OCR) upgraded to Overweight from Equal Weight at Barclays
Pacific Sunwear (PSUN) upgraded to Buy from Neutral at Janney Capital
Rovi (ROVI) upgraded to Outperform from Sector Perform at Pacific Crest
SAP (SAP) upgraded to Buy from Hold at Evercore ISI
Veeva (VEEV) upgraded to Buy from Hold at Stifel
Downgrades
AIG (AIG) downgraded to Neutral from Outperform at Credit Suisse
Allison Transmission (ALSN) downgraded to Neutral from Buy at BofA/Merrill
AmerisourceBergen (ABC) downgraded to Equal Weight from Overweight at Barclays
Anadarko (APC) downgraded to Neutral from Buy at Citigroup
Andersons (ANDE) downgraded to Market Perform from Outperform at BMO Capital
Archer Daniels (ADM) downgraded to Market Perform from Outperform at BMO Capital
Barrick Gold (ABX) downgraded to Sector Perform from Outperform at RBC Capital
Cabot Oil & Gas (COG) downgraded to Neutral from Buy at Citigroup
Chesapeake (CHK) downgraded to Neutral from Buy at Citigroup
Cimarex Energy (XEC) downgraded to Sell from Neutral at Citigroup
Concho Resources (CXO) downgraded to Neutral from Buy at Citigroup
Cooper Tire (CTB) downgraded to Neutral from Buy at Goldman
Diageo (DEO) downgraded to Neutral from Buy at Nomura
Dick's Sporting (DKS) downgraded to Fair Value from Buy at CRT Capital
Dick's Sporting (DKS) downgraded to Neutral from Buy at Goldman
EP Energy (EPE) downgraded to Neutral from Buy at Citigroup
Empire District Electric (EDE) downgraded to Sell from Neutral at UBS
Ericsson (ERIC) downgraded to Neutral from Outperform at Credit Suisse
Fibria Celulose (FBR) downgraded to Neutral from Overweight at JPMorgan
Google downgraded to Hold from Buy at Stifel
Kate Spade (KATE) downgraded to Market Perform from Outperform at BMO Capital
Leidos (LDOS) downgraded to Underweight from Neutral at JPMorgan
Macerich (MAC) downgraded to Neutral from Buy at BofA/Merrill
Marathon Oil (MRO) downgraded to Sell from Neutral at Citigroup
Millicom (MIICF) downgraded to Sector Perform from Outperform at RBC Capital
New Gold (NGD) downgraded to Sell from Neutral at Roth Capital
Newfield Exploration (NFX) downgraded to Neutral from Buy at Citigroup
Noble Energy (NBL) downgraded to Neutral from Buy at Citigroup
Oasis Petroleum (OAS) downgraded to Sell from Neutral at Citigroup
Oshkosh (OSK) downgraded to Underperform from Buy at BofA/Merrill
Pioneer Natural (PXD) downgraded to Neutral from Buy at Citigroup
Priceline (PCLN) downgraded to Hold from Buy at Stifel
Qlik Technologies (QLIK) downgraded to Hold from Buy at Evercore ISI
Range Resources (RRC) downgraded to Neutral from Buy at Citigroup
Red Hat (RHT) downgraded to Hold from Buy at Evercore ISI
SAP (SAP) downgraded to Neutral from Buy at UBS
Scientific Games (SGMS) downgraded to Market Perform from Outperform at Wells Fargo
Suez Environnement (SZEVY) downgraded to Sector Perform from Outperform at RBC Capital
Tanger Factory (SKT) downgraded to Underperform from Neutral at BofA/Merrill
Tenneco (TEN) downgraded to Sell from Neutral at Goldman
The Pantry (PTRY) downgraded to Market Perform from Outperform at Wells Fargo
TripAdvisor (TRIP) downgraded to Hold from Buy at Stifel
Universal Health (UHS) downgraded to Equal Weight from Overweight at Barclays
Vitamin Shoppe (VSI) downgraded to Underperform from Neutral at BofA/Merrill
WellCare (WCG) downgraded to Underperform from Buy at BofA/Merrill
Whiting Petroleum (WLL) downgraded to Neutral from Buy at Citigroup
Zumiez (ZUMZ) downgraded to Hold from Buy at Brean Capital
Initiations
Aerie Pharmaceuticals (AERI) initiated with a Buy at Cantor
Alimera Sciences (ALIM) initiated with a Buy at Cantor
Alnylam (ALNY) initiated with a Buy at Canaccord
Bank of America (BAC) initiated with an Outperform at Credit Suisse
BioMarin (BMRN) initiated with a Buy at Canaccord
Brinker (EAT) assumed with a Buy at Citigroup
Buffalo Wild Wings (BWLD) assumed with a Neutral at Citigroup
Cardiome (CRME) initiated with a Buy at Brean Capital
Carlisle (CSL) initiated with an Outperform at Oppenheimer
Chipotle (CMG) assumed with a Buy at Citigroup
Citi (C) initiated with a Neutral at Credit Suisse
Cynosure (CYNO) initiated with a Buy at Brean Capital
Darden (DRI) assumed with a Buy at Citigroup
Domino's Pizza (DPZ) assumed with a Neutral at Citigroup
Goldman Sachs (GS) initiated with an Outperform at Credit Suisse
Horizon Pharma (HZNP) initiated with a Buy at Brean Capital
JPMorgan (JPM) initiated with an Outperform at Credit Suisse
Momenta Pharma (MNTA) initiated with a Buy at Brean Capital
Morgan Stanley (MS) initiated with a Neutral at Credit Suisse
ORBCOMM (ORBC) initiated with a Market Perform at Northland
PNC Financial (PNC) initiated with a Neutral at Credit Suisse
Paramount Group (PGRE) initiated with a Neutral at Goldman
Restaurant Brands (QSR) reinstated with a Buy at Citigroup
SunTrust (STI) initiated with an Underperform at Credit Suisse
U.S. Bancorp (USB) initiated with a Neutral at Credit Suisse
Wayfair (W) initiated with a Hold at Stifel
Wells Fargo (WFC) initiated with an Outperform at Credit Suisse
Wendy's (WEN) initiated with a Buy at Citigroup
Workday (WDAY) initiated with a Neutral at Exane BNP Paribas
zulily (ZU) initiated with a Buy at Stifel
COMPANY NEWS
Standard Chartered (SCBFF) announced the closure of its institutional cash equities, equity research and equity capital markets “ECM” activities. In the Retail Clients segment, the Group’s strategy of focusing on key cities and accelerating the switch to digital has resulted in around 2,000 job cuts announced or completed in the last three months, with a reduction of a further 2,000 expected during 2015, primarily to be achieved by not replacing staff when they leave
Alexion Pharmaceuticals (ALXN) said eculizumab trial did not reach statistical significance
PVH Corp. (PVH) announced the closing of Izod retail division to be completed by the end of FY15
Tesco (TSCDY) to close 43 unprofitable stores, consolidate head office locations
Biodel (BIOD) said its concentrated insulin showed positive Phase 2a results
Ultragenyx Pharmaceutical (RARE) announced a license agreement with Inserm Transfert SA and Institut du Cerveau et de la Moelle Epiniere for intellectual property related to the treatment of Huntington's disease with triheptanoin
NephroGenex (NRX) received positive scientific advice from EMA on Phase 3 with Pyridorin
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Mistras (MG), National American University (NAUH), Resources Connection (RECN)
Companies that missed consensus earnings expectations include:
Park Electrochemical (PKE), EXFO Inc. (EXFO), WD-40 (WDFC)
Zumiez (ZUMZ) raises Q4 EPS view to 75c-77c from 69c-72c, consensus 73c
Rovi (ROVI) sees Q4 adjusted EPS 39c-43c, consensus 41c. The company narrowed FY14 adjusted EPS view to $1.69-$1.73 from $1.60-$1.75 and sees FY15 adjusted EPS $1.55-$1.85, consensus $1.87
Stage Stores (SSI) raises FY14 EPS to $1.14-$1.18 from $1.05-$1.15, consensus $1.06
NEWSPAPERS/WEBSITES
Apple Watch (AAPL) fakes show up at Consumer Electronics Show, Financial Times reports
HTC partners with Under Armour (UA) for product development, DigiTimes reports
Apple (AAPL) to use retail employees to pre-test new iOS versions, 9to5Mac reports
General Motors (GM) to slash prices on most 2015 Cadillac CTS sedans, Reuters reports
Netflix (NFLX) wants to stream Sony's (SNE) 'The Interview,' AP reports
SYNDICATE
AmTrust (AFSI) files to sell 3M shares of common stock
Auspex Pharmaceuticals (ASPX) files to sell $172.5M of common stock
Cempra (CEMP) 5.25M share Secondary priced at $24.50
Medical Properties Trust (MPW) files to sell 30M shares of common stock
OvaScience (OVAS) 2.3M share Secondary priced at $50.00
Stemline (STML) files to sell common stock
Vitae Pharmaceuticals (VTAE) files to sell 3M shares of common stock
Xencor (XNCR) files to sell $150M mixed securities shelf
- 3064 reads
- Printer-friendly version
- Send to friend
- advertisements -


I just have this gut feeling we will see a massive reversal to the downside today. With futures up almost 200 now at 8am.
Linus awaits the Great Pumpkin in the most sincere pumpkin patch in all the land. Happy Halloween stocktivity.
Weren't the Russian FinMin supposed to release forex reserve figures today? Its like they're trying to hide something.
Gross Helps Fuel New Fund With His Own Cash
His own cash, yeah right. His customer's cash that he paid himself richly with over the years. Where are the customer's yachts billy boy? skim scam the flim flam man.
note to world: I will manage your cash in a bond fund for a very low (flat) rate. Stop over paying the maggots.
Thank god the Sony hackers weren't from Texas. Then the US Government would have had to have shut down the entire Texas internet and telecommunications systems. Whew.
But Verizon is doing such a good job already!
And this one: "Soros: Europe must bail out Ukraine to beat Putin" (http://www.cnbc.com/id/102320384)
"Europe must..." WTF