- National Guard, police curb Ferguson unrest as protests swell across U.S. (Reuters [39])
- Ferguson Reaction Across U.S. Shows Complex Racial Split (BBG [40])
- Democratic senator Schumer: Democrats Screwed Up By Passing Obamacare In 2010 (TPM [41])
- Veto threat derails Reid tax deal (Hill [42])
- Justice Department Investigating Possible HSBC Leak to Hedge Fund (WSJ [43])
- Merkel hits diplomatic dead-end with Putin (Reuters [44]), and yet...
- Merkel Said to Reject Ukraine NATO Bid as Rousing Tension (BBG [45])
- HSBC, Goldman Rigged Metals’ Prices for Years, Suit Says (BBG [46])
- Oil Bust of 1986 Reminds U.S. Drillers of Price War Risks (BBG [47])
- Xi Risks Silk Road Backlash to Remake China Center of World (BBG [48])
- Obama heckled over immigration policies in Chicago appearance (Reuters [49])
- Uber Said Poised to Raise Funds Showing $40 Billion Value (BBG [50])
- Hong Kong student leaders arrested as police clear protest site (Reuters [51])
- It’s Most Wonderful Time of Year for Retail Job Seekers (BBG [52])
- Behind Black Friday's giant, cheap TV deals (Reuters [53])
- Food Fight as Diners Gripe at Jiro’s 12-Minute, $250 Meal (BBG [54])
Overnight Media Digest
WSJ
* The U.S. Supreme Court on Tuesday said it would review the nation's first-ever standards requiring power plants to reduce mercury emissions and other toxic air pollutants, taking up a case with implications for President Barack Obama's broader environmental agenda. (http://on.wsj.com/1yardAw [55])
* The U.S. Justice Department is investigating allegations that an employee of HSBC Holdings Plc leaked confidential client information to a major hedge fund, according to people familiar with the matter, a new twist in a cross-border government probe into misconduct in the foreign-exchange market. (http://on.wsj.com/1rg5F69 [43])
* British regulators are pressuring Bank of America Corp's European investment-banking arm to improve the way it manages risks, saying its current practices are "simplistic" and need to be retooled, according to people familiar with the matter and communications reviewed by The Wall Street Journal. (http://on.wsj.com/11UjP0m [56])
* China does not officially celebrate Thanksgiving or Christmas, but American retailers are hoping to convert a generation of consumers in the world's most populous country into year-end binge buyers anyway. Starting this week, Chinese shoppers can take advantage of Black Friday discounts from retailers such as Macy's Inc, American Apparel Inc and Gilt Groupe Inc, thanks to a partnership with Alipay, the payments processor closely tied to e-commerce juggernaut Alibaba Group Holding Ltd. (http://on.wsj.com/1thFKpP [57])
* PG&E Corp hired a new security company this month to protect a substation that serves Silicon Valley in the wake of security breaches that have cost the utility millions of dollars and raised concerns about protection of the nation's electricity grid. Federal regulators last week approved new rules requiring utilities to protect important transmission substations and other equipment from physical attacks. (http://on.wsj.com/1vkKkYS [58])
* San Francisco-based Payward Inc, operator of the Kraken bitcoin exchange, will help the collapsed Mt. Gox exchange investigate the loss of hundreds of thousands of bitcoins and manage the process of paying back its creditors, the companies said Wednesday. (http://on.wsj.com/1rga3SK [59])
* Combating social-media bullying is a significant part of Adam Choat's job as a police officer based at an Iowa school district. But an incident this month involving the anonymous messaging app Yik Yak brought new challenges. Familiar with the way youngsters at other schools had used Yik Yak to bully or issue threats, Choat - with Yik Yak's help - set up a "geo-fence" around Southeast Polk High School to block the app on campus. (http://on.wsj.com/1rrvN8v [60])
FT
A London-based law firm, Stewarts Law, is gathering shareholders to join a lawsuit against Tesco and seek compensation for losses after the retailer's profits overstatement.
UK Labour's threat to strip tax privileges from independent schools would negatively impact rather than help advance social mobility by sapping funds available for bursaries and scholarships and increasing fees, private head teachers have warned.
The Department for Work and Pensions, Britain's flagship welfare programme faces more delays, with the National Audit Office warning that the universal credit's new IT system is six months behind schedule.
U.S. tech companies such as Facebook Inc, Apple Inc , Google Inc and Twitter Inc have been criticised by British lawmakers for holding back information on potential terror suspects as part of an official report into the murder of Fusilier Lee Rigby on a London street 18 months ago.
NYT
* The Obama administration is expected to release a contentious and long-delayed environmental regulation to curb emissions of ozone, a smog-causing pollutant linked to asthma, heart disease and premature death. The regulation, which would aim at smog from power plants and factories across the country would be the latest in a series of Environmental Protection Agency controls on air pollution.(http://nyti.ms/1yUKllr [61])
* The Securities and Exchange Commission accused HSBC Bank Plc's Swiss unit of failing to register with the SEC before providing advice to American clients, an omission that allowed it to avoid scrutiny in Washington. The SEC extracted a $12.5 million penalty from the HSBC unit. (http://nyti.ms/1tstvFP [62])
* In a surprising move, hedge fund manager Philip Falcone is stepping down as the chief executive and chairman of the Harbinger Group. In leaving the Harbinger Group, he will receive a lump-sum payment of $20.5 million and $19.8 million in bonus money. (http://nyti.ms/1yal9b5 [63])
* The Dutch financial services company ING Groep NV said it would cut 1,700 jobs in the Netherlands and invest 200 million euros, or about $248 million, to expand its digital services. (http://nyti.ms/1plpyYh [64])
* Less than three months after succeeding her father as executive chairwoman of Banco Santander following his death in September, Ana Botín replaced the Spanish lender's chief executive and reshaped the bank's board in a significant shake-up. Santander also will add three new members to its board, replacing Ana Botín's father, Emilio Botín and two board members who had each served for more than a decade. (http://nyti.ms/1xZAGx2 [65])
* Vista Equity Partners has agreed to acquire the Advanced Computer Software Group, a British health care and business software maker, for 725 million pounds, or about $1.14 billion. (http://nyti.ms/1ybeu1v [66])
* Steinhoff International Holdings of South Africa said it agreed to acquire a majority stake in the investment holding company Pepkor for 62.8 billion rand, or about $5.7 billion, in shares and cash. (http://nyti.ms/1FmLXIp [67])
* At its meeting on Thursday in Vienna, the Organization of the Petroleum Exporting Countries was under pressure to at least announce modest cuts in an effort to shore up the markets. But any cuts would be modest and would probably do little to prop up oil prices, assuming the countries even stick to an agreement.(http://nyti.ms/1xCMiRe [68])
Canada
THE GLOBE AND MAIL
** The federal and Ontario governments should establish an automotive investment board headed by an experienced auto executive as a means of winning new vehicle assembly plants, which have gone almost entirely to Mexico and the southern U.S. states in recent years. That recommendation was made to federal Industry Minister James Moore and Ontario Economic Development Minister Brad Duguid at a meeting Monday of the Canadian Automotive Partnership Council (CAPC). (http://bit.ly/1HE14iW [69])
** Prime Minister Stephen Harper used a campaign-style event in Southwestern Ontario to unveil C$5.8 billion ($5.13 billion) in infrastructure projects - public works spending on everything from museums to small-craft harbors that should be creating jobs by the time an expected 2015 election takes place. (http://bit.ly/1yaKxi4 [70])
** Already taking heavy flak from business groups over its tough anti-corruption rules, Ottawa faces a new threat - a possible showdown with key trading partners. Canada risks being hit with a World Trade Organization challenge and NAFTA investor lawsuits over its threat to bar some companies from selling to the government for up to 10 years, warns a report commissioned by the Canadian Council of Chief Executives (CCCE) and delivered to federal officials. (http://bit.ly/11SLTBe [71])
NATIONAL POST
** Canada Mortgage and Housing Corp said Monday its latest analytical research tool shows there is no housing bubble forming in the residential market. But the Crown corporation warned builders in some markets - notably Toronto and Montreal - to keep a close eye on construction to make sure they are not building for demand that does not materialize. (http://bit.ly/1y7ete2 [72])
** The premiers of Canada's two biggest oil-producing provinces said the escalating debate over the Energy East pipeline should not be turned into an inquiry into total oil field emissions. (http://bit.ly/11s7hNK [73])
** Ontario is moving to regulate the sale of electronic cigarettes, ban all flavored tobacco products, including menthol, and mandate calorie counts on restaurant menus. The Liberal government wants to treat e-cigarettes just like tobacco cigarettes, which means a total ban on sales to youth and on using them in restaurants and public buildings. (http://bit.ly/11s6AUO [74])
China
CHINA SECURITIES JOURNAL
- China is set to launch policies to support Chinese exports and make domestic firms more competitive in global trade, sources told the official newspaper.
- Beijing will accelerate construction of new energy car charging infrastructure and offer funds to cities that promote new energy cars, the Ministry of Finance said on Tuesday.
SHANGHAI SECURITIES NEWS
- A draft proposal related to reform of China's power industry has been handed to central authorities, sources told the state-run newspaper. The reform includes trying to attract more private funds into the sector and overhauling pricing.
SHANGHAI DAILY
- A music video celebrating Chinese President Xi Jinping's relationship with his wife has gone viral in China, receiving 50 million views on the country's Tencent video service.
CHINA DAILY
- China will draft more regulations to combat terrorism in the country's restive western Xinjiang region, officials told the newspaper. The draft would deal with issues such as religious extremism, managing Internet usage and cracking down on terror-related audio and visual materials.
- China had nine research institutions in the world's top 200 this year, up from three last year, according to the Nature Index 2014 Global. The Chinese Academy of Sciences ranked number six overall.
Britain
The Times
Vodafone gave Scotland Yard phone records of 1,700 News UK staff
Scotland Yard has obtained and examined the mobile phone records of more than 1,700 people working for News UK, the company which publishes The Times, in a major breach of privacy laws. (http://thetim.es/1zVgkTp [75])
US internet giant failed to pass on terror concerns about Lee Rigby killer
An incriminating message in which Michael Adebowale wrote of his desire to slaughter a British soldier was not passed on to authorities in time to prevent the murder of Lee Rigby, even though his internet service provider suspected him of terrorism links, MPs have been told. (http://thetim.es/1FoC25c [76])
The Guardian
BG pay deal 'excessive and inflammatory', says IoD
The Institute of Directors has launched a blistering attack on the 25 million pounds ($39.29 million) pay deal promised to the new boss of oil and gas group BG Group Plc, saying it damaged the reputation of corporate Britain and urged shareholders in the company to block the proposed package. (http://bit.ly/1vd3qyH [77])
Rising number of UK workers want to cut back hours, ONS says
Health managers, senior police officers and social workers are Britain's most "over-employed" employees, according to an official study. Senior officers in the protective services, which covers high-ranking police, firefighters and prison governors, also report they would like a cut in hours, according to figures on over- and under-employment from the Office for National Statistics. (http://bit.ly/1thuAkT [78])
The Telegraph
Bank of England will raise interest rates despite euro gloom, says Mark Carney
Despite several clouds over the UK economy, the Bank of England's team of interest rate setters is determined to deliver an interest rate hike as their next change in policy. (http://bit.ly/1vklurR [79]) BT shareholders back 10 billion stg mobile takeover plans
BT Group Plc's biggest shareholders have thrown their weight behind plans for the company to pile headlong into the mobile market with a 10 billion pounds acquisition of either EE or O2. (http://bit.ly/1tsfsAe [80])
Sky News
Osborne To Unveil Bank Switching Overhaul
George Osborne is turning the screw on Britain's biggest banks by demanding an urgent overhaul of the seven-day current accounts switching regime. (http://bit.ly/1AQJhTH [81])
Mortgage Warning For People Aged Over 40
As mortgage lending continues to slow an industry body is warning that new rules mean people over 40 are being denied loans because of their age. (http://bit.ly/1FoEGb2 [82])
The Independent
Topshop's Philip Green expects major price cuts in battle for Christmas sales
Topshop tycoon Sir Philip Green has predicted a high street discount war this Christmas as retailers attempt to win back shoppers after a mild autumn. (http://ind.pn/1trqNjV [83])
"Aggressive" credit card market to be investigated by City watchdog
The credit card industry was thrust back in the dock this morning after the Financial Conduct Authority announced details of its market study into the 150 billion pounds market. (http://ind.pn/1pkOYFl [84])
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Durable goods orders for October at 8:30--consensus down 0.5%
Personal income for October at 8:30--consensus up 0.4%
Consumer spending for October at 8:30--consensus up 0.3%
Jobless claims for week of November 22 at 8:30--consensus 286K
Chicago PMI for November at 9:45--consensus 63.0
University of Michigan consumer sentiment index for November at 9:55--consensus 90.0
Pending home sales index for October at 10:00--consensus up 0.6%
New home sales for October at 10:00--consensus up 0.8% to 470K rate
ANALYST RESEARCH
Upgrades
Brown Shoe (BWS) upgraded to Buy from Neutral at Sterne Agee
Resource Capital (RSO) upgraded to Outperform from Market Perform at JMP Securities
Downgrades
21Vianet (VNET) downgraded to Hold from Buy at Stifel
Cinemark (CNK) downgraded to Hold from Buy at Topeka
Louisiana-Pacific (LPX) downgraded to Underperform from Sector Perform at RBC Capital
U.S. Silica (SLCA) downgraded to Market Perform from Outperform at Wells Fargo
Initiations
Actavis (ACT) reinstated with an Equal Weight at Barclays
Allergan (AGN) reinstated with an Equal Weight at Barclays
BofI Holding (BOFI) initiated with an Outperform at FBR Capital
Engility Holdings (EGL) initiated with a Buy at Drexel Hamilton
Keysight Technologies (KEYS) initiated with an Outperform at RW Baird
MAM Software (MAMS) initiated with a Buy at B. Riley
PennantPark (PNNT) initiated with a Buy at MLV & Co.
Premier (PINC) initiated with a Buy at KeyBanc
Vantiv (VNTV) initiated with a Buy at Topeka
Western Union (WU) initiated with a Hold at Topeka
Zayo Group (ZAYO) initiated with a Buy at Citigroup
Zayo Group (ZAYO) initiated with a Buy at SunTrust
Zayo Group (ZAYO) initiated with a Conviction Buy at Goldman
Zayo Group (ZAYO) initiated with an Outperform at RBC Capital
Zayo Group (ZAYO) initiated with an Outperform at Raymond James
Zayo Group (ZAYO) initiated with an Outperform at Wells Fargo
Zayo Group (ZAYO) initiated with an Overweight at Barclays
COMPANY NEWS
Amazon.com (AMZN) lowers price of unlocked Fire Phone to $199
Amgen (AMGN), AstraZeneca report study of brodalumab met all primary endpoints
Autobytel (ABTL) again concludes not in best interests to pursue sale
BE Aerospace (BEAV) approves separation of business to be known as KLX
Cubic (CUB) raises semi-annual dividend to 13.5c per share from 12c per share
EE confirms Deutsche Telekom (DTEGY), Orange talks with BT Group
Fed says Wells Fargo (WFC) 2014 resolution plan has shortcomings
Glacier Bancorp (GBCI) increases dividend 5.5% to 18c
H.B. Fuller (FUL) approves exit plan related to organizational restructuring project
Hain Celestial (HAIN) announces 2 for 1 stock split
Herbalife (HLF) CEO Michael Johnson raises personal share holding in company
Icahn raises stake in Hertz (HTZ) to 10.77% from 8.67%
Infoblox (BLOX) names Jesper Andersen as CEO
McCormick (MKC) increases dividend to 40c from 37c
Medivation (MDVN) to names Joseph Lobacki as Chief Commercial Officer
Microsoft (MSFT) cuts Xbox price for limited time to $329
Pratt & Whitney awarded $105.49M government contract
QIWI (QIWI) acquires Money.Mail.Ru
Tangoe (TNGO) announces additional $30M share repurchase program
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Ctrip.com (CTRP), Perfect World (PWRD), Cubic (CUB), Infoblox (BLOX), Nimble Storage (NMBL), Analog Devices (ADI)
Companies that missed consensus earnings expectations include:
ReneSola (SOL), Seadrill (SDRL), AeroVironment (AVAV), Hoegh LNG (HMLP), Simulations Plus (SLP), Veeva (VEEV)
Companies that matched consensus earnings expectations include:
China Cord Blood (CO), HP (HPQ)
HP (HPQ) sees FY15 revenue in constant currency flat
HP (HPQ) sees FY15 EPS $3.83-$4.03, consensus $3.95
HP (HPQ) sees Q1 EPS 89c-93c, consensus 93c
Ctrip.com (CTRP) sees Q4 revenue growth approximately 30% YoY, consensus $315.3M
NEWSPAPERS/WEBSITES
Amazon.com (AMZN) to bring Black Friday discounts to China, China Daily says
CBS (CBS) says short term extension for DISH negotiations granted, Bloomberg reports
Danone (DANOY) considering sale of Yakult stake, Bloomberg reports
Microsoft (MSFT) fined $140M by China for tax evasion, Re/code reports
Netflix (NFLX) suing former employee, current Yahoo CIO, Re/code reports
TSMC (TSM) expected to grab 40%-50% of Apple A9 chip orders, DigiTimes reports
Twitter (TWTR) may want to buy Bieber-backed selfie app Shots, CNBC says
SYNDICATE
Aehr Test Systems (AEHR) raises $2.6M in a private placement of common stock
Frank's International (FI) files automatic mixed securities shelf
Plains GP Holdings (PAGP) files to sell 402.5M shares for shareholders
