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Frontrunning: April 1

Tyler Durden's picture




 
  • Oil holds around $55 as Iran nuclear talks drag on (Reuters)
  • Bob Diamond’s African Banking Venture Runs Into Problems (WSJ)
  • Iran Nuclear Talks Resume With Lavrov Saying Deal at Hand (BBG)
  • Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices (WSJ)
  • Renegades of Junk: The Rise and Fall of the Drexel Empire (BBG)
  • Explosion at Yemen factory kills at least 25: residents, medics (Reuters)
  • Macerich Rejects Simon Property’s $16.8 Billion Takeover Bid (WSJ)
  • Reckoning Arrives for Cash-Strapped Oil Firms Amid Bank Squeeze (BBG)
  • Bufett Says Greek Exit From Euro ‘May Not Be a Bad Thing’ (BBG)
  • Iraq's interior minister says most of Tikrit is liberated, fight goes on (Reuters)
  • Harman to Buy Bang & Olufsen’s Car-Stereo Business (WSJ)
  • New Metric Aids Weak Credit Risks (WSJ)

 

Overnight Media Digest

WSJ

* Charter Communications Inc. agreed to acquire Bright House Networks LLC, a closely held cable operator with two million customers, for $10.4 billion in cash and stock, the companies announced on Tuesday. (http://on.wsj.com/1yyhS3W)

* Comcast Corp said on Tuesday that it would commit $4 billion and be the sole outside investor for 10 years in a $4.1 billion investment company it is creating in partnership with its chief financial officer, Michael Angelakis, to hunt for growth at home and abroad as the U.S. cable market matures.(http://on.wsj.com/1yyiAOP)

* Real-estate investment trust Macerich Co. has rejected a proposal from rival Simon Property Group Inc. to acquire it for $95.50 per share, saying that the proposal undervalues the company. (http://on.wsj.com/1yymyqL)

* Google Inc. is giving its mobile-focused research group, Advanced Technology and Projects, more funding and a new building, and will unveil new projects at Google's developer conference in May, executives say. (http://on.wsj.com/1yymVkZ)

* Harman International Inc., a maker of in-car multimedia systems, is buying the auto-related operation of Bang & Olufsen A/S for 145 million euros ($156.37 million), giving the Stamford, Connecticut, company a dominant position in the car sound-system business. (http://on.wsj.com/1yynfQM)

 

FT

Shadow Chancellor of the Exchequer, Ed Balls, said there are "big questions" surrounding the value of the HS2 rail project but the Labour government, should it come to power, would go ahead with the first phase of the project from London to Birmingham on its current timetable.

Leader of the Labour Party, Ed Miliband, is expected to disclose plans on Wednesday to give workers on zero-hour deals the right to a regular contract after 12 weeks.

Hewlett-Packard Co has lodged a claim in London against Michael Lynch and a former colleague for damages of about $5.1 billion over their management of Autonomy, the company it bought in 2011.

Oil producer Gulf Keystone Petroleum Ltd's Simon Murray has relinquished his post of chairman of the board to be temporarily replaced by the company's senior independent director Andrew Simon.

Proxy adviser Glass Lewis has recommended against the remuneration of BP Plc's senior management including Chief Executive Officer Bob Dudley saying the pay exceeded market standards.

 

NYT

* General Motors Co, the nation's biggest automaker, is blanketing this week's New York auto show with new products that it hopes will help improve its stagnant market share in the United States. The show offers GM another opportunity to move past its record number of vehicle recalls in 2014 as well as a challenge this year from a shareholder group for a stock buyback program. (http://nyti.ms/1yypVOp)

* The Arkansas legislature on Tuesday passed its version of a bill described by proponents as a religious freedom law, even as Indiana's political leaders struggled to gain control over a growing backlash that has led to calls to boycott the state because of criticism that its law could be a vehicle for discrimination against gay couples. (http://nyti.ms/1yyqtUh)

* Bankruptcy judge Brendan Shannon gave his blessing on Tuesday to a plan that would keep about 1,700 RadioShack Corp stores open, saying he would approve the plan over a higher cash bid that would probably have liquidated the retailer but raised more money for its creditors. (http://nyti.ms/1yytsMH)

* The Orbital Publishing Group, a periodical subscription service, is facing accusations that it charged consumers as much as twice the cost of a subscription and pocketed the difference, according to state attorneys general in New York, Oregon, Minnesota, Missouri and Texas. (http://nyti.ms/1yytrbn)

* GoDaddy Inc raised $440 million after pricing its initial public offering at $20 a share late Tuesday, above its expected range of $17 to $19 a share, according to a person close to the transaction. At that price, the company has a market value of just more than $3 billion. (http://nyti.ms/1yytXq4) (

 

Canada

 

 

China

CHINA SECURITIES JOURNAL

- China Everbright Bank Co Ltd plans to spin off its wealth division to help it avoid risks, said the bank's chairman, Zhao Huan, adding that it does not intend to list the new subsidiary.

21st CENTURY BUSINESS HERALD

- China plans to invest more than 488 billion yuan ($78.72 billion) in water conservation projects this year, said Chang Jiaoyong, vice chairman of China's Ministry of Water Resources.

CHINA DAILY

- The United States should not choose to remain outside the Asian Infrastructure Investment Bank, according to an editorial. Given the once strong opposition from the United States and negative coverage from the Western media, it is heartening to see so many countries show support, the editorial said.

- China has shuttered over 60 illegal golf courses since last summer as part of the country's campaign against environmental destruction, the newspaper said.

- The China Securities Regulatory Commission will review on Friday the details of the merger of China's two largest producers

 

Britain

The Times

OSBORNE: FALTERING RECOVERY NEEDS MORE TIME

UK Finance minister George Osborne is braced for an economic update shortly before the election that could show that the recovery is slowing, but he would use the data to warn of the threat posed by Labour, Tory strategists said. (http://thetim.es/1Ge6UHi)

ELLIOTT BLASTS ALLIANCE FOR ITS USE OF 'SCARE TACTICS'

Elliott Advisors lambasted the board of Alliance Trust PLC for behaviour "unbecoming of directors of a public company" as it made its play for the heart and minds of the trust's tens of thousands of small shareholders. (http://thetim.es/19A2o9A)

The Guardian

EXECUTIVE PAY FALLING IN REAL TERMS, REPORT SHOWS

Executive pay is falling in real terms with just under half of chief executives receiving no rise in their salaries this year, according to research by PricewaterhouseCoopers. (http://bit.ly/1Ge7Dbq)

WEAK PAY GROWTH PROMPTS FRESH PRODUCTIVITY WARNING

The typical pay rise for UK workers has been 2 percent for two years running, with almost half unsatisfied with their employer's decision, according to a new report by CIPD, the professional body for HR workers. (http://bit.ly/1Ge4NDs)

The Telegraph

CARPHONE WAREHOUSE CUT OFF FROM APPLE WATCH LAUNCH

Apple Inc has declined to supply Carphone Warehouse, Britain's biggest mobile phone retailer, with its new smartwatch, as it aims to target the top end of the market. (http://bit.ly/1xwD9ji)

B&Q BRAND COULD DISAPPEAR AS NEW KINGFISHER BOSS CLOSES STORES

The new French chief executive of Kingfisher PLC is to close 60 B&Q stores in Britain and has raised the prospect of the DIY brand disappearing as part of an overhaul of the company. (http://bit.ly/1C4bLoj)

Sky News

M&G FUND MANAGER SCOOPS 15 MLN STG-PLUS PAY DEAL

Richard Woolnough, a top fund manager at M&G Investments has scooped a 15 million pounds-plus pay deal for the second consecutive year, cementing his status as one of the highest-paid executives at a London-listed company. (http://bit.ly/1NCYYC2)

BRITISH TECH START-UP SIGNALS MOULTON BACKING

Signal, a British technology company which is targeting the dominance of 'old media' information platforms will disclose on Wednesday that it has raised a new round of funding worth $1.8 million from backers including Jon Moulton, the veteran venture capitalist. (http://bit.ly/19A1Dx4)

The Independent

CHEAPER CAR INSURANCE AND WORKING AROUND THE WEATHER: HOW IBM IS USING DATA IN ITS NEW 2 BLN STG INTERNET OF THINGS UNIT

IBM, the computer giant, is taking a punt on the Internet of Things by investing over 2 billion pounds ($2.96 billion) over the next four years on a new unit. The Internet of Things Unit is building a cloud-based platform that companies can use to get and contribute data that could affect their business operations. (http://ind.pn/1BN743g)

 

 

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
ADP employment change for March at 8:15--consensus 225,000
Markit manufacturing PMI for March at 9:45--consensus 55.3
ISM manufacturing index for March at 10:00--consensus 52.5
Construction spending for February at 10:00--consensus down 0.1%
DOE petroleum inventory reports for week of March 27 at 10:30

ANALYST RESEARCH

Upgrades

American Tower (AMT) upgraded to Strong Buy from Outperform at Raymond James
Cimpress (CMPR) upgraded to Equal Weight from Underweight at Barclays
HP (HPQ) upgraded to Buy from Hold at Jefferies
Immune Design (IMDZ) upgraded to Buy from Hold at Jefferies
Lloyds Banking (LYG) upgraded to Hold from Underperform at Jefferies
Philips (PHG) upgraded to Conviction Buy from Buy at Goldman
Staples (SPLS) upgraded to Overweight from Sector Weight at KeyBanc
SunEdison Semiconductor (SEMI) upgraded to Buy from Neutral at Citigroup
Xylem (XYL) upgraded to Outperform from Neutral at Boenning & Scattergood

Downgrades

AMC Networks (AMCX) downgraded to Hold from Buy at Evercore ISI
American Airlines (AAL) downgraded to Hold from Buy at Deutsche Bank
BB&T (BBT) downgraded to Neutral from Overweight at JPMorgan
CA Technologies (CA) downgraded to Equal Weight from Overweight at Barclays
Delta Air Lines (DAL) downgraded to Hold from Buy at Deutsche Bank
Fifth Street Finance (FSC) downgraded to Neutral from Buy at UBS
Medley Capital (MCC) downgraded to Neutral from Buy at UBS
Michael Kors (KORS) downgraded to Neutral from Overweight at Piper Jaffray
Norcraft (NCFT) downgraded to Neutral from Buy at UBS
ON Semiconductor (ONNN) downgraded to Sell from Neutral at Goldman
Pier 1 Imports (PIR) downgraded to Underweight from Equal Weight at Morgan Stanley
Telefonica Brasil (VIV) downgraded to Hold from Buy at HSBC
UTi Worldwide (UTIW) downgraded to Sector Perform from Outperform at RBC Capital
United Continental (UAL) downgraded to Hold from Buy at Deutsche Bank
Universal Health (UHS) downgraded to Underperform from Neutral at Sterne Agee

Initiations

ACE Limited (ACE) initiated with an Outperform at Credit Suisse
Allstate (ALL)initiated with an Outperform at Credit Suisse
Aon plc (AON) initiated with an Underperform at Credit Suisse
Arch Capital (ACGL) initiated with a Neutral at Credit Suisse
Arthur J. Gallagher (AJG) initiated with an Outperform at Credit Suisse
Cabot Microelectronics (CCMP) initiated with a Buy at Citigroup
Chubb (CB) initiated with an Outperform at Credit Suisse
Dover (DOV) initiated with a Buy at Nomura
Esperion (ESPR) initiated with a Buy at UBS
Flowserve (FLS) initiated with a Neutral at Nomura
Honeywell (HON) initiated with a Neutral at Nomura
Kinder Morgan (KMI) initiated with a Buy at Stifel
Marsh & McLennan (MMC) initiated with an Outperform at Credit Suisse
Progressive (PGR) initiated with a Neutral at Credit Suisse
Shutterstock (SSTK) initiated with an Outperform at Raymond James
Starbucks (SBUX) initiated with a Neutral at Credit Suisse
StoneMor Partners (STON) initiated with a Buy at Janney Capital
Travelers (TRV) initiated with a Neutral at Credit Suisse
Trevena (TRVN) initiated with an Outperform at Wedbush
Tuesday Morning (TUES) initiated with a Buy at Sterne Agee
Twitter (TWTR) initiated with a Buy at Jefferies
Ultragenyx (RARE) initiated with an Outperform at Wedbush
W. R. Berkley (WRB) initiated with an Underperform at Credit Suisse
Wayfair (W) initiated with a Perform at Oppenheimer
XL Group (XL) initiated with an Outperform at Credit Suisse
zulily (ZU) initiated with an Outperform at Oppenheimer

COMPANY NEWS

Simon Property (SPG) withdrew offer to acquire Macerich (MAC). Macerich's board previously rejected the $95.50 per share offer from Simon
Philips (PHG) to sell majority interest in LED components and Automotive lighting in deal with enterprise value of approximately $3.3B
Dyax (DYAX) reported positive results from Phase 1b clinical trial of DX-2930. The company also received Fast Track designation from FDA for DX-2930 for HAE
Carpenter Technology (CRS) said it is targeting a $50M inventory reduction by end of FY15
Groupon (GRPN) testing Groupon Stores concept

EARNINGS

Companies that missed consensus earnings expectations include:
Tesco (TESO), CytoSorbents (CTSO), Willbros Group (WG), UTi Worldwide (UTIW), Quest Resource (QRHC), Immune Design (IMDZ), Paragon Shipping (PRGN), SYNNEX (SNX)

Companies that matched consensus earnings expectations include:
Landec (LNDC)

NEWSPAPERS/WEBSITES

Qualcomm (QCOM) on mission to minimize fallout in China, Financial Times reports
GM (GM) looks to boost GMC light truck sales in U.S., Financial Times reports
EU investigates McDonald's (MCD) over alleged tax evasion, The Guardian says
Takeda (TKPYY) offers $2.2B to resolve Actos lawsuits, Bloomberg reports
Pilgrim's Pride (PPC) may be ready for a big acquisition, Bloomberg reports (SAFM)
Wal-Mart (WMT) pressuring suppliers to cut prices, WSJ reports

SYNDICATE

Burlington Stores (BURL) files to sell 12.49M shares for holders
Celadon Group (CGI) files $250M mixed securities shelf
Celladon (CLDN) files to sell 7M shares of common stock
Coherus Biosciences (CHRS) 4.14M share Secondary priced at $29.00
CyrusOne (CONE) 12.4M share Secondary priced at $31.12
Etsy (ETSY) files to sell 16.67M shares, sees IPO range of $14-$16
Fox Factory (FOXF) files to sell 17.87M shares of common stock for holders
Galmed (GLMD) files to sell $150M of ordinary shares
GoDaddy (GDDY) 23M share IPO priced at $20.00
Media General (MEG) 6.8M share Secondary priced at $16.00
Mylan (MYL) 35M share Secondary priced at $58.35
Trillium Therapeutics (TRIL) 2.5M share Secondary priced at $19.50

 

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Wed, 04/01/2015 - 07:35 | 5947868 dimwitted economist
dimwitted economist's picture

I Hate the stock market...

Wed, 04/01/2015 - 07:49 | 5947886 Headbanger
Headbanger's picture

It must be getting very bad when Wal Mart demands lower prices from suppliers!

And fuck Warren Buffett!

Who are they kidding?

There's no way out of this house of horrors they created.

Wed, 04/01/2015 - 07:41 | 5947876 NoDebt
NoDebt's picture

"Shadow Chancellor of the Exchequer, Ed Balls, said there are "big questions""

That should have been the headline.

 

Wed, 04/01/2015 - 08:10 | 5947909 overmedicatedun...
overmedicatedundersexed's picture

news of the elite insane:

"Andrew Getty, 47, was the grandson of oil baron J. Paul Getty and part of the Getty trust.

He is one of four sons of Ann and Gordon P. Getty, one of J. Paul Getty's three sons.

Getty’s death is the latest misfortune to befall the wealthy family.

 

J. Paul Getty's fifth son -- the only child he had with his fifth wife -- died of a brain tumor in 1958 at age 12, and another son died of a suspected suicide in 1973.

That same year, J. Paul Getty III -- Andrew Getty's cousin -- was kidnapped in Italy and held for ransom for more than five months.

The 16-year-old was released after the family, which had been sent the boy's severed right ear, paid the kidnappers $2.8 million."

Wed, 04/01/2015 - 08:31 | 5947978 Creepy A. Cracker
Creepy A. Cracker's picture

"Wal-Mart Ratchets Up Pressure on Suppliers to Cut Prices"

Aren't you glad that you gave out those raises now, Wal-Mart?

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