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Frontrunning: December 8

Tyler Durden's picture




 
  • Anti-Trump Effort Launches Super PAC (WSJ)
  • Muslims decry Trump's proposal to keep them out of US (AP)
  • Debate Heats Up Over No-Fly List, Gun Sales (WSJ)
  • OPEC Takes Down Oil Majors as Lower-for-Even-Longer Kicks In (BBG)
  • Chinese Companies Are Trapped in IPO Logjam (WSJ)
  • Republican Ted Cruz vaults into first place in new Iowa poll (Reuters)
  • Washington denies U.S.-led coalition hit Syria army camp (Reuters)
  • Fear at the tap: Uranium contaminates water in the West (AP)
  • Investors Unchain Themselves From ETFs as Stock Volume Surges (BBG)
  • Texas Won’t Get Chance This Week to Fight Refugees’ Arrival (BBG)
  • Bank of France Sees Weaker Fourth-Quarter Growth After Attacks (BBG)
  • Turkish leader's son denies Russian allegations of Islamic State trade (Reuters)
  • Yen Embraced by U.S. Banks as Heir Apparent to Dollar's Throne (BBG)
  • Boston College basketball players among 28 sick after eating at Chipotle (WCVB)
  • Architect of Valeant’s Turnaround Is Under Fire (WSJ)
  • Valeant Said to Consider Sale of Paragon Unit, Reuters Reports (BBG)
  • Canadian Pacific Revises Its Offer to Acquire Norfolk Southern (BBG)
  • Chicago police commander faces trial for putting gun in suspect's mouth (Reuters)
  • U.S. to deploy spy plane in Singapore amid China tensions (Reuters)
  • Investors Place Record Bets on Rising U.S. Interest Rates (WSJ)

 

Overnight Media Digest

WSJ

- On Monday, the Federal Trade Commission filed a lawsuit to block Staples Inc's roughly $6 billion takeover of Office Depot Inc, a deal that would create an office supplier with nearly $40 billion in annual sales. (http://on.wsj.com/1QsBh1U)

- Consumer products makers Newell Rubbermaid Inc and Jarden Corp are in talks to combine, according to people familiar with the matter, a move that would put Sharpie markers, Graco baby strollers and Mr. Coffee machines under one roof. (http://on.wsj.com/1QsBl1z)

- Icahn Enterprises on Monday offered to buy Pep Boys - Manny Moe & Jack - for $15.50 a share in cash, casting doubt on Bridgestone Corp's previously announced purchase of the car parts and repair company. (http://on.wsj.com/1QsBpOR)

- In a rare move for the sportswear maker, Nike Inc has signed a lifetime endorsement deal with basketball star LeBron James. Terms of the deal weren't immediately available. (http://on.wsj.com/1QsBsdF)

 

FT

The U.S. Securities and Exchange Commission is preparing to file charges against Credit Suisse Group AG for inflating reports of assets under management in its private bank.

French advertising giant Publicis Groupe SA is set to lose most of Procter & Gamble Co U.S. accounts as P&G is shifting almost all of its North American media planning and buying business from Publicis to Omnicom Group Inc.

Former UK Prime Minister Gordon Brown is joining Pimco board as an adviser. He joins other public officials on the board including the former president of the European Central Bank, Jean-Claude Trichet.

 

NYT

- Procter & Gamble, the biggest advertiser in the world, announced on Monday it was moving the bulk of its North American media buying and planning business to Omnicom from Publicis Groupe, in a sweeping change that underscores the broader upheaval in the ad industry. (http://nyti.ms/1RBswU3)

- Export Import Bank, the 81-year-old agency that helps finance many American exports reopened for new business on Monday, ending a five-month hiatus forced by conservative Republicans who have condemned the bank as a prime example of corporate welfare and so-called crony capitalism. (http://nyti.ms/1RBsE5O)

- The government of Japan said on Tuesday that the economy grew at a relatively robust pace last quarter, reversing a more pessimistic estimate it published three weeks ago. (http://nyti.ms/1RBsJ9L)

- Addressing concerns about the health of Sumner Redstone, Viacom's 92-year-old executive chairman, its chief executive said on Monday that Redstone had an "incredible will to live and enjoyment of life with some physical disabilities." (http://nyti.ms/1RBsRpH)

- JAB Holding Company - the investment arm of Reimann family of Europe - announced on Monday that it will acquire Keurig Green Mountain coffee for $13.9 billion in an all-cash deal. JAB will lead an investor group to acquire Keurig for $92 a share in cash, a premium of 78 percent. (http://nyti.ms/1RBt3FE)

 

Canada

THE GLOBE AND MAIL

** Oil prices sank to their lowest level in nearly seven years, threatening fresh pain for Canada's economy. The drop in oil prices triggered major falls in both the Canadian dollar and the stock market. Benchmark West Texas intermediate tumbled nearly six percent to $37.65 a barrel, its lowest since February, 2009. (http://bit.ly/1ONfXnX)

** Federal Finance Minister Bill Morneau confirmed Monday that the contribution limit on the tax-free savings account will drop back to C$5,500 ($4,061) from C$10,000 effective January 1, 2016, but that the limit for 2015 will remain untouched. (http://bit.ly/1NfnLdr)

** Vancouver-area banks reported suspicious transactions involving mainland Chinese clients 17 times more often than those tied to citizens of any other outside country in recent years. It is unclear if any Canadian laws were broken in the Vancouver-area cases. One expert says it is likely the statistics are evidence of more money entering Vancouver's hot housing market. (http://bit.ly/1RBQTAS)

NATIONAL POST

** The Canadian government is poised to make good on its promise to cut federal income taxes for middle earners by raising the rate on the richest Canadians - cuts that the government admits won't be revenue-neutral. Finance Minister Bill Morneau is conceding for the first time that the changes are going to cost the federal treasury C$1.2 billion annually, starting in the 2016-17 fiscal year. (http://bit.ly/1OfAflb )

 

China

SECURITIES TIMES

- The non-performing loan ratio of China's listed banks will be around 2 percent in 2016, according to a report published by the International Finance Institute of Bank of China on Monday.

SHANGHAI SECURITIES NEWS

- BTG Hotel plans to acquire 65.13 percent of the shares in Home Inn, it said in a statement to the Shanghai Stock Exchange, in a 7.2 billion yuan ($1.12 billion) deal.

CHINA SECURITIES JOURNAL

- The China Insurance Development Index hit 109.1 in 2014, indicating steady growth in the sector, according to the China Insurance Development Index Report released by the Insurance Association of China on Monday.

SHANGHAI DAILY

- The Rural Credit Cooperative of Shandong is under investigation following allegations that 150 million yuan was misappropriated from 22 of its customers, the paper said. The bank said two people were being questioned and fake payment slips had been used.

CHINA DAILY

- Beijing is setting up a database of legitimate Living Buddhas in China, said the paper, to counter the proliferation of fake Living Buddhas who use money they collect to sponsor illegal or separatist activities in Tibet.

 

Britain

The Times

German industrial production crept up in October, reversing declines seen over the summer months, but the rate of expansion in the eurozone's largest economy was slower than expected. (http://thetim.es/1N7JvKl)

The price of oil looked set to fall below $40 for the first time since 2009, after OPEC's decision to abandon production quotas on Friday fuelled concerns about a widening global glut of crude. (http://thetim.es/1OM2o88)

The Guardian

More than 400 bankers are likely to be axed at the U.S. investment bank Morgan Stanley, which is streamlining its bond-trading business amid a worldwide downturn in fee income. Around 100 of the job cuts are expected to be made in London, where the U.S. bank has a base at Canary Wharf. (http://bit.ly/1OKCYI9)

Serco Group Plc has warned that next year's profits will be less than expected after the troubled government outsourcing operator sold its offshore call centre business and failed to replace some lost contracts. (http://bit.ly/1jKPDh6)

The Telegraph

Barclays Plc mobile and online systems crashed today, locking customers out of their bank accounts and leaving them unable to make payments and transfers for several hours. (http://bit.ly/1Qs4Z75)

The United Kingdom's industry leaders think Jeremy Corbyn's shadow cabinet poses a serious threat to British business. A survey of FTSE 100 chairmen suggested that 55 percent believed the composition of the shadow cabinet was "worrying", while 30 percent said it was potentially "very damaging" for business. (http://bit.ly/1NGNOtg)

Sky News

Toscafund, which has made a string of successful investments in innovative consumer-facing companies such as esure, the motor insurer, is investing about 14 million stg in return for a stake of roughly 15 percent in easyProperty. (http://bit.ly/1m7gHsD)

Monarch has crowned a turnaround in its fortunes with a return to profit despite being hit by flight cancellations to Tunisia and Egypt Sharm el Sheikh, and passengers' security fears delaying bookings. (http://bit.ly/1XQzHfY)

The Independent

According to data from Halifax, the average home buyer saves 4,500 stg on stamp duty thanks to changes in the tax structure introduced a year ago. (http://ind.pn/1NR0Qec)

 

* * *

Analyst outlook changes: upgrades, downgrades, initiations

UPGRADES:

•    Ab Inbev (BUD) raised to buy vs reduce at HSBC
•    Agilent (A) raised to buy vs neutral at Goldman
•    Allete (ALE) raised to buy vs hold at Wunderlich
•    Ares Management (ARES) raised to buy vs neutral at BofA
•    BBCN Bancorp (BBCN) raised to neutral at Piper Jaffray
•    Douglas Emmett (DEI) raised to outperform at BMP Capital
•    Fei Co. (FEIC) raised to buy vs neutral at Goldman
•    Fireye (FEYE) raised to buy vs neutral at Citi
•    Galena Biopharma (GALE) raised to hold vs sell at Cantor
•    Hershey (HSY) raised to buy vs hold at Argus Research,
•    Kellogg (K) raised to equalweight vs underweight: Morgan Stanley
•    Lamar Advertising (LAMR) raised to buy at Topeka Capital
•    Myriad Genetics (MYGN) raised to neutral vs sell at Goldman
•    Outerwall (OUTR) raised to buy at B. Riley
•    SQM (SQM) raised to hold at Santander
•    Tanger Factory (SKT) raised to buy vs neutral at Goldman
•    Unilever (UN) raised to neutral vs underperform at Credit Suisse
•    Vail Resorts (MTN) raised to buy vs neutral at Goldman
•    Wabco (WBC) raised to buy vs hold at Stifel

DOWNGRADES:

•    Apollo Global (APO) cut to neutral vs buy at BofA
•    Blackstone (BX) cut to neutral vs buy at BofA
•    Carlyle (CG) cut to neutral vs buy at BofA
•    Carnival (CCL) cut to hold vs add at Numis
•    CBOE (CBOE) cut to underweight at Barclays
•    Danaher (DHR) cut to neutral vs buy at Goldman
•    Dean Foods (DF) cut to underweight at Morgan Stanley
•    Foresight Energy (FELP) cut to neutral at Citi
•    Franklin Resources (BEN) cut to underweight at Barclays
•    IHG (IHG) cut to hold vs buy at Berenberg
•    Keurig Green Mountain (GMCR) cut to market perform at William Blair
•    Labcorp (LH) cut to neutral vs buy at Goldman
•    Office Depot (ODP) cut to sector weight at Keybanc
•    PerkinElmer (PKI) cut to sell vs neutral at Goldman
•    Southern Copper (SCCO) cut to hold at santander
•    Staples (SPLS) cut to sector weight at Keybanc
o    Staples cut to market perform at Telsey Advisory Group
•    United Natural Foods (UNFI) cut to underweight at Barclays
•    Vail Resorts (MTN) cut to market perform at JMP Securities
•    Wabash National (WNC) cut to hold vs buy at Stifel
•    WebMD (WBMD) cut to outperform at RBC Capital

INITIATIONS:

•    Amazon (AMZN) rated new overweight at Pacific Crest
•    Blue Nile (NILE) rated new sector weight at Pacific Crest
•    Comcast (CMCSA) rated new nuy at Nomura, PT $72
•    Empire Distric Electric (EDE) rated new overweight at Keybanc, PT $24
•    First Republic Bank (FRC) rated new overweight at Atlantic Equities
•    Four Corners Property (FCPT) rated new outperform at Robert Baird
•    Glu Mobile (GLUU) rated new neutral at Wedbush, PT $3.30
•    Hancock Holding (HBHC) rated new neutral at Piper Jaffray
•    Heartware (HTWR) rated new buy at Suntrust, PT $80
•    HP Enterprise (HPE) rated new neutral at Susquehanna, PT $15
•    Hilton (HLT) rated new hold at Berenberg
•    Hyatt (H) rated new buy at Berenberg
•    Instructure (INST) rated new buy at Jefferies
o    Instructure rated new nuy at Goldman Sachs, PT $25
•    Intevac (IVAC) rated new outperform at Northland, PT $7
•    Liberty Interactive (QVCA) rated new overweight a Ppacific Crest
•    Marriott (MAR) rated new buy at Berenberg
•    Physicians Realty Trust (DOC) rated new buy at Stifel, PT $18
•    Pure Storage (PSTG) rated new negative at Susquehanna
•    Starwood Hotels (HOT) rated new buy at Berenberg
•    Teekay Tankers (TNK) rated new outperform: Credit Suisse, PT $10
•    TPG Specialty Lending (TSLX) rated new neutral at Ladenburg
•    Ventas (VTR) rated new buy at Edward Jones
•    Wayfair (W) rated new sector weight at Pacific Crest
•    Western Gas Equity (WGP) rated new nuy at Janney, PT $50
•    Western Gas Partners (WES) rated new buy at Janney, PT $60

 

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Tue, 12/08/2015 - 08:39 | 6892576 Arnold
Arnold's picture

Anti-Trump Effort Launches Super PAC (WSJ)

 

This is a very bad idea.

MBA s behind this, no doubt in my mind.

Tue, 12/08/2015 - 08:44 | 6892584 Cognitive Dissonance
Cognitive Dissonance's picture

Trump seems to be the ultimate "Be careful what you wish for because you might just get it."

<It is easy to envisgn Trump as US Dictator for Life. But what does that make Ivana? Or Ivanka?>

Tue, 12/08/2015 - 08:54 | 6892629 Arnold
Arnold's picture

The last 'nut job' that raised equivalent issues while running for POTUS was Ross Perot.

Some of his stuff was Precog.

Tue, 12/08/2015 - 08:41 | 6892588 Catullus
Catullus's picture

Anti-Trump Super PAC. Yes

Just goes to show you, people only vote against things.

Tue, 12/08/2015 - 08:43 | 6892589 Arnold
Arnold's picture

- Export Import Bank, the 81-year-old agency that helps finance many American exports reopened for new business on Monday, ending a five-month hiatus forced by conservative Republicans who have condemned the bank as a prime example of corporate welfare and so-called crony capitalism. (http://nyti.ms/1RBsE5O)

This is a very bad idea as well.

Boeing.

Tue, 12/08/2015 - 08:57 | 6892644 nmewn
nmewn's picture

So on this whole Muzzie thingy in San Bernandino, is Farook an example of the "homegrown terrorist" that O'Douchebag has been sqawking about for seven years? 

I always thought he was talking about Tea Partiers ;-)

Tue, 12/08/2015 - 09:01 | 6892662 overmedicatedun...
overmedicatedundersexed's picture

trump is correct to bring up such issues ..the knee jerk reaction of progressives and GOP elite reptiles & the lap dog of both the MSM, is classic.. a country is able to control it's borders and who comes in - we ain't had a country in a very long time, all we have is NWO feeding ground eating the wealth and freedoms of our citizens..some smart posters here have eyes wide open and yet do not see..as they are blinded by their own bias.

Tue, 12/08/2015 - 09:03 | 6892666 stant
stant's picture

Better hope there's not a another attack before the primary's

Tue, 12/08/2015 - 09:11 | 6892685 nmewn
nmewn's picture

And there's something else (I seem to be obsessed with it lately)...Obama's ham-handed joining of "gun control" with No-Fly Lists.

One would think Obama could point to an instance where someone on the list had purchased a gun.

Still waiting for that President O'Blowhard ;-)

Tue, 12/08/2015 - 09:30 | 6892759 Arnold
Arnold's picture

http://www.washingtonpost.com/wp-dyn/articles/A17073-2004Aug19.html

Personally, I would not trust this guy with a potatoe gun.

Tue, 12/08/2015 - 09:56 | 6892946 Arnold
Arnold's picture

Tylers, like the rolling read count.

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