- George Soros: 'What Japan is doing is actually quite dangerous because" (BBG [43])
- North Korea lacks means for nuclear strike on U.S., experts say (Reuters [44])
- Yellen latest to hint about slowing of QE3 (FT [45])
- Hollande approval rating hits new low (FT [46])
- Hollande Dismisses Reshuffle as Crisis Hits Popularity (BBG [47])
- Japan Upper house approves full 5 year term for BOJ gov. Kuroda (BBG [48])
- US: Plan to Cap Tax Breaks Is Gaining Steam (WSJ [49])
- BOE Says Investors May Be Taking ‘Too Rosy’ a View of Stress (BBG [50])
- Kiwis Say ‘Ni Hao’ as China Ties Trump Australia Sales (BBG [51])
- Obama Avoids Trading Threats With North Korea’s Kim (BBG [52])
- Xi's Russia visit confirms continuity of ties (China Daily [53])
- Hopes of thaw as Peña Nieto heads to China (FT [54])
Overnight Media Digest
WSJ
* Boeing Co is packaging and preparing to send airlines battery-replacement kits for grounded 787 jets, even though final regulatory approvals for the fixes are still pending, according to people familiar with the details.
* Some of the biggest banks in the world are vying for fees that together could top $400 million for advising and financing the Dell Inc buyout, according to people familiar with the negotiations.
* New Bank of Japan Governor Haruhiko Kuroda quickly and dramatically put his stamp on the long-beleaguered central bank with a deflation-taming plan that exceeded expectations and sent Japanese shares up.
* After more than six years behind bars, former Enron Corp chief executive Jeffrey Skilling may be closer than ever to exiting a Colorado federal prison earlier than expected.
* A U.S. federal agency and a senior senator Thursday launched separate probes into whether news of an important government announcement was improperly leaked to traders about 30 minutes before it was made public.
* New York's top prosecutor is raising concerns about the pace of relief provided to the state's mortgage borrowers by Wells Fargo & Co under a landmark $25 billion settlement, in the latest sign of dissatisfaction with the foreclosure-related legal remedies agreed to by banks and state and U.S. federal officials.
* The U.S. Consumer Financial Protection fined the nation's four largest mortgage-insurance providers - Genworth Financial Inc, American International Group Inc's United Guaranty unit, Radian Group Inc and MGIC Investment Corp - $15.4 million, saying the companies paid illegal kickbacks to lenders in order to win business.
* A hedge fund with ties to satellite mogul Charlie Ergen is headed for a bankruptcy-court showdown with Wall Street financier Philip Falcone over the fate of his LightSquared Inc wireless venture.
* Prices for U.S. Treasury bonds hit their highest levels this year as investors poured into the ultra-safe bonds following a downbeat jobless-claims report and a sharp turn in Japan's monetary policy.
* Some companies are pushing to withdraw their workers from a giant Teamsters pension plan - which pools money from about 1,900 companies - that faces a deep funding shortfall and questions about its long-term viability.
FT
Former Enron Chief Executive Jeffrey Skilling could be released early as his lawyers negotiate with the U.S. Justice Department.
Facebook
has launched a new app that replaces the home screens of some Android
phones with photos and status updates from the social network.
Hewlett-Packard
said Chairman Ray Lane has stepped down and will be succeeded by
activist investor Ralph Whitworth on an interim basis.
MF
Global's court-appointed trustee has blamed Jon Corzine's dangerous
trading strategy and inadequate risk controls for helping to bring down
the brokerage.
Italy's central bank has begun sanctions
procedures against former directors, managers and auditors of the
country's third-largest lender Monte dei Paschi di Siena which could
result in up to 5 million euros in fines.
Outgoing Chief Executive Frank Chapman and other top executives at BG Group will not get a bonus for 2012.
NYT
* Two of the most senior executives at Bank of Cyprus may have deleted crucial e-mail documents last year related to what proved to be a disastrous decision to invest heavily in Greek government bonds just before Greece's international bailout in 2010, according to an investigative report commissioned by the central bank of Cyprus.
* Jeffrey Skilling, the former Enron Corp chief executive serving a 24-year sentence for his role in the fraud that led to the energy giant's collapse, could be released early from prison under a possible agreement with the U.S. government, according to a notice posted late Wednesday on the Justice Department's website.
* Japan's central bank said that it would aggressively buy bonds, doubling the amount of money in circulation over two years with a view of producing annual inflation of about 2 percent.
* Even while accusing Jon Corzine and other former MF Global Holdings Ltd executives of "negligent conduct" that may have fueled the brokerage firm's collapse, a bankruptcy trustee has agreed to postpone a lawsuit against them.
* Hewlett-Packard Co said its Chairman Raymond Lane was stepping down just two weeks after his narrow re-election. Two other directors departed the board entirely.
* U.S. Federal Reserve officials are wondering how to remain cautious even as signs show that the labor market is improving more rapidly than expected.
* Mathew Martoma, the former SAC Capital Advisors portfolio manager facing insider trading charges, has switched lawyers, replacing Charles Stillman of Stillman & Friedman with Richard Strassberg of Goodwin Procter.
* Advance Publications, owner of Ohio newspaper The Plain Dealer, said on Thursday that it would trim the paper's home delivery to three days a week and create a new digital company. The paper is also expected to cut more than a third of its newsroom staff.
Canada
THE GLOBE AND MAIL
* A northern Ontario spill of oil from a derailed train is 100 times larger than Canadian Pacific Railway Ltd initially reported.
The company said Wednesday that only four barrels spilled. On Thursday, it said some oil had flowed beneath the snow and gone undetected. CP now estimates 400 barrels spilled, or 63,500 litres - a slightly greater amount than the company's spill last week in Minnesota. ()
* A massive leak of data about bank accounts held in international tax havens is raising new calls for a global crackdown on tax cheats.
The International Consortium of Investigative Journalists, based in Washington D.C., revealed this week that it has received an unprecedented leak of documents containing financial information from about 120,000 offshore bank accounts, including 450 held by Canadian residents. ()
Reports in the business section:
* After an unprecedented 26-month buildup, Target Corp is finally officially opening its first 24 stores in Canada - after a month of "soft openings" - and inevitably facing customer letdown. ()
FINANCIAL POST
* The federal government is scrambling to obtain access to information gleaned from a massive confidential data leak containing the identities of thousands of wealthy offshore account holders around the world, including 450 Canadians. ()
* Japan is prepared to invest billions directly in natural gas infrastructure in Western Canada as part of a plan to secure massive supplies of liquefied natural gas to replace nuclear power, a top government adviser said Thursday.
Hong Kong
SOUTH CHINA MORNING POST
-- Fleur Pellerin, France's minister for small and medium-sized enterprises, innovation and digital economy, said the country had brought in measures to address the current economic crisis and is offering a range of incentives to attract investors from Hong Kong and mainland China. (link.reuters.com/fej27t [55])
-- Listing candidates, including China Galaxy Securities and China Everbright Bank, plan to proceed with offerings in the second quarter in Hong Kong to replenish their capital base for further expansion as the authorities seek to tighten credit in China. (link.reuters.com/gej27t [56])
-- As home sales start showing signs of losing steam, developers, such as Sun Hung Kai Properties and CSI Properties, are rushing to launch projects before a law takes effect at the end of this month which is expected to curb new flat sales. (link.reuters.com/jej27t [57])
THE STANDARD
-- Next Media Ltd said it is currently in talks with potential buyers of its TV business in Taiwan after the original deal was axed.
-- The first meeting arranged by the Labour Department aimed at ending the eight-day-old dockers strike failed to materialize as both sides were unable to agree on the status of workers in the negotiations. A pressure group has called for a boycott of supermarket chain PARKnSHOP, owned by Hutchison Whampoa Ltd , on Saturday. (link.reuters.com/hej27t [58])
TA KUNG PAO
-- Chinese developer Country Garden Holdings Co Ltd said contract sales for the first quarter totalled about 18.39 billion yuan ($2.97 billion), nearly 30 percent of its full-year target of 62 billion yuan.
Fly On The Wall 7:00 AM Market Snapshot
ANALYST RESEARCH
Upgrades
Bill Barrett (BBG) upgraded to Buy from Neutral at Goldman
Celgene (CELG) upgraded to Buy from Hold at Deutsche Bank
JPMorgan (JPM) upgraded to Overweight from Equal Weight at Evercore
Mobile TeleSystems (MBT) upgraded to Overweight from Neutral at JPMorgan
PDC Energy (PDCE) upgraded to Buy from Neutral at SunTrust
Downgrades
CoreSite Realty (COR) downgraded to Sell from Hold at Cantor
Evercore Partners (EVR) downgraded to Market Perform from Outperform at Keefe Bruyette
F5 Networks (FFIV) downgraded to Neutral from Buy at Citigroup
F5 Networks (FFIV) downgraded to Neutral from Overweight at Piper Jaffray
Juniper (JNPR) downgraded to Equal Weight from Overweight at Barclays
Kimberly Clark (KMB) downgraded to Underperform from Market Perform at BMO Capital
MFA Financial (MFA) downgraded to Hold from Buy at Jefferies
Mattel (MAT) downgraded to Hold from Buy at KeyBanc
Terex (TEX) downgraded to Market Perform from Outperform at Wells Fargo
Vitran (VTNC) downgraded to Hold from Buy at Cowen
Western Asset Mortgage (WMC) downgraded to Hold from Buy at Jefferies
Initiations
Aetna (AET) initiated with a Buy at UBS
Apollo Group (APOL) initiated with a Sell at Compass Point
Cablevision (CVC) initiated with a Neutral at RW Baird
Charter (CHTR) initiated with a Neutral at RW Baird
Cigna (CI) initiated with a Buy at UBS
Comcast (CMCSA) initiated with a Neutral at RW Baird
Corinthian Colleges (COCO) initiated with a Sell at Compass Point
DeVry (DV) initiated with a Buy at Compass Point
Freeport McMoRan (FCX) initiated with an Outperform at FBR Capital
Graphic Packaging (GPK) initiated with a Buy at Citigroup
Humana (HUM) initiated with a Neutral at UBS
ITT Educational (ESI) initiated with a Neutral at Compass Point
RLJ Lodging Trust (RLJ) initiated with an Outperform at RW Baird
Southern Copper (SCCO) initiated with a Market Perform at FBR Capital
Teck Resources (TCK) initiated with a Market Perform at FBR Capital
Time Warner Cable (TWC) initiated with a Neutral at RW Baird
UnitedHealth (UNH) initiated with a Buy at UBS
Warner Chilcott (WCRX) initiated with a Neutral at Citigroup
Wellpoint (WLP) initiated with a Neutral at UBS
Workday (WDAY) initiated with a Buy at Jefferies
HOT STOCKS
Ray Lane to step down as Hewlett-Packard (HPQ) chairman
Valero Energy (VLO) board approved spin-off of CST Brands, to retain 20% interest for six months
SED International (SED) to restructure U.S. operations, cut headcount by 25%
Wells Fargo (WFC) said it experienced a cyber attack
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Xyratex (XRTX), WD-40 (WDFC)
Companies that missed consensus earnings expectations include:
Penford (PENX), Franklin Covey (FC)
NEWSPAPERS/WEBSITES
- The "fear trade" is alive and well as investors rediscovered the appeal of haven Treasury bonds on Thursday, amid a flurry of worrying news ranging from North Korea to the domestic job market. The mood change sent Treasury prices rallying to the highest point this year, the Wall Street Journal reports
- Wall Street has a lot more than bragging rights riding on the $24B-plus takeover battle for Dell (DELL). Some of the biggest banks are vying for fees that together could top $400M for advising and financing the buyout of the computer group, sources say, the Wall Street Journal reports
- Bank of Japan Governor Haruhiko Kuroda played down concerns his unprecedented burst of monetary stimulus would create asset-price bubbles even as it delivered an immediate pay-off in global markets, with government bond yields at a record low, the yen hitting a 3-1/2 year trough and as stocks surging to multi-year highs, Reuters reports
- Deutsche Telekom (DTEGY) is looking into improving the terms of a proposed merger of its T-Mobile USA unit with MetroPCS Communications (PCS) as a last resort to win over shareholders ahead of a vote on the deal next week, sources say, Reuters reports
- Blackstone Group (BX) and Dell’s (DELL) Michael Dell have yet to resolve a critical issue, sources say: what role he would play if the private equity firm wins the bidding for the company, Bloomberg reports
- Royal Bank of Scotland’s (RBS) Japan unit faces penalties after the Securities and Exchange Surveillance Commission found that employees attempted to manipulate benchmark interest rates, Bloomberg reports
SYNDICATE
Brandywine Realty (BDN) files to sell 10M shares of common stock
Cancer Genetics (CGIX) 600K share IPO priced at $10.00
Enbridge (ENB) sells 10.85M treasury shares at C$46.11
Energy Transfer Partners (ETP) files to sell 12M common units
