- Thanks Fed: Meet the high schooler who made $300K trading penny stocks under his desk (Verge [31])
- Protesters block NY streets after officer cleared in chokehold death (Reuters [32])
- U.S. Plans Probe of New York Police Chokehold Death (BBG [33])
- Sharpton Leads Civil-Rights Meeting on Chokehold Decision (BBG [34])
- Staten Island on Edge Over Grand Jury Decision In Death of Eric Garner (WSJ [35])
- Draghi Tests Speed Limit as ECB Awaits Stimulus Evidence (BBG [36])
- European Stocks Approach Seven-Year High Before Draghi Statement (BBG [37])
- Britain targets multinationals that try to dodge taxes (Reuters [38])
- Oil Trains Hide in Plain Sight (WSJ [39])
- Ruble Slides as Traders Press Russia to Act to Defend Currency (BBG [40])
- American possibly exposed to Ebola being transferred to Atlanta hospital (Reuters [41])
- World’s Richest Families Warned of Impact-Investing Hype (BBG [42])
- Al Qaeda's Yemen branch issues video purporting to show U.S. captive (Reuters [43])
- Non-Nerds Would Rather Bomb Their SATs Than Look Uncool (BBG [44])
- Post-Election Bounce Potential For Japan’s Markets (BBG [45])
Overnight Media Digest
WSJ
* A hacking attack on Sony Pictures that disabled its internal systems and resulted in the leak of five films and a slew of sensitive data on pay and other personnel matters has set off upheaval at the big Hollywood studio. (http://on.wsj.com/1rYLtjK [46])
* Despite some high-profile accidents, finding the locations of oil-filled trains remains difficult, even in those states that don't consider the information top secret, because there are no federal or state rules requiring public notice. (http://on.wsj.com/1I2lWRc [39])
* U.K. treasury chief George Osborne on Wednesday introduced a new 25 percent tax on foreign companies' profits derived from economic activity in the U.K. - aiming to rein in what the government says is tax avoidance by multinationals shifting their tax burden to lower-tax regimes. (http://on.wsj.com/1vlq44B [47])
* Google Inc plans to boost the commissions it pays some outside firms to sell its workplace software, signaling a more serious challenge to Microsoft Corp's dominance at larger companies, according to people familiar with the matter. (http://on.wsj.com/1zmmlb4 [48])
* HBO could pay a price with at least one major pay-TV partner if its planned streaming-video service proves a hit with consumers, people familiar with the matter say. Under HBO's current contract with DirecTV, the cable channel would run into problems if it signs up more than 450,000 subscribers nationally for the "over-the-top" online service, or 300,000 in any given local market. (http://on.wsj.com/1vOCjdJ [49])
* As competition in online payments heats up, investors are doubling down on Stripe. The payments startup said it raised $70 million in a new funding round valuing it at $3.57 billion, doubling its valuation in less than a year. Thrive Capital led the round, which also included previous backers Sequoia Capital, Founders Fund, Khosla Ventures and General Catalyst Partners. (http://on.wsj.com/12oknvE [50])
* United Continental Holdings Inc has imposed new restrictions on lithium-ion batteries carried in the cargo holds of its jets, the latest airline response to fire hazards posed by such bulk shipments. (http://on.wsj.com/1ySz9HK [51])
FT
* Paul Walsh, who was previously the chief executive of Diageo Plc, is being lined up to become the chairman of Formula One board and a meeting is being scheduled for early next week to discuss the matter.
* Britain plans to introduce a tax called Google Tax to target profits of multinational companies which arise from business activity in the UK that are "artificially shifted" abroad.
* Munich prosecutors are carrying out an investigation at Airbus' defence unit over alleged corruption linked to contracts with Romania and Saudi Arabia, they said on Wednesday. Prosecutors searched offices on suspicion that bribes were paid to enable the company to obtain contracts worth 3 billion euros ($3.7 billion).
* The Russian central bank spent $700 million to help the rouble on Monday. This is its first intervention in support since the currency was allowed to float freely last month. After the data came out, the rouble continued its fall against the dollar after opening almost flat.
NYT
* Even as Japanese auto supplier Takata Corp continued to resist demands that it expand the recall of its airbags nationwide, Honda Motor Co Ltd told lawmakers on Wednesday that it would take that action on its own and use replacements from other suppliers if necessary. (http://nyti.ms/1zmeaLS [52])
* The Federal Reserve says that more than 30 percent of Americans report irregular incomes that sabotage efforts to budget and save. Unreliable work hours are cited most often. (http://nyti.ms/1vmzHoL [53])
* In a spellbinding letter to Jim Cramer, activist investor J. Carlo Cannell urged him to cut his pay 70 percent, resign from CNBC and direct his energy to "helping your fellow shareholders crawl back from Hades." (http://nyti.ms/12oiEq5 [54])
* Sony Pictures Entertainment and the FBI were seeking more information about an attack that crippled Sony's computer systems - including whether North Korea, or perhaps a former employee, was responsible. (http://nyti.ms/1tPqrnD [55])
* An increasing number of borrowers are falling behind on their car payments, even as the total amount of outstanding debt reaches new heights, according to the latest report by Experian, the credit and research firm. In a presentation, Experian said the balance of loans that were 60 days delinquent increased 27 percent, to roughly $4 billion, in the third quarter from a year earlier. (http://nyti.ms/1w33xjK [56])
* A Supreme Court argument in a pregnancy discrimination case against United Parcel Services Inc had, for the most part, the arid quality of a logic problem, with the justices wrestling with an ambiguous federal law. But near the end of the hour-long argument, Justice Elena Kagan confronted a lawyer for UPS. (http://nyti.ms/1yRhgZ9 [57])
China
CHINA SECURITIES JOURNAL
- China should allow asset-backed securitization (ABS) products to be issued on stock exchanges, said Yan Qingmin, vice president of China Banking Regulatory Commission (CBRC). So far ABS products can only be issued in China's interbank market.
- MeiDu Energy Corp has acquired oil fields in Texas, United States, for $141 million, the company said in a statement.
SECURITIES TIMES
- China plans to support companies that ease environmental pollution. A recently established 50 billion yuan National Environmental Fund will be used to assist in the implementation of this guidance.
CHINA DAILY
- Given the ignorance of and disregard for China's constitution shown by public officials, state employees should take an oath to abide by the fundamental law, said an editorial in the official paper.
PEOPLE'S DAILY
- Over 90 percent of Chinese government websites have security issues. This means there are issues with cyber security in China, said the mouthpiece of the Chinese Communist Party, citing an assessment report by China Software Test Center.
Britain
The Times
BIG TOBACCO CHOKES ON OSBORNE'S LEVY PLANS
Big Tobacco faces paying millions of pounds more in taxes through the introduction of a U.S.-style levy designed to help pay for the impact of smoking, the British government has proposed. (http://thetim.es/1FPrmgk [58])
MULTINATIONAL 'GOOGLE TAX' PROVES OSBORNE'S AUTUMN STATEMENT TRUMP CARD
A new levy on tax-avoiding multinationals immediately dubbed the Google Tax was a surprise measure in a political Autumn Statement in which George Osborne called on voters to allow him "to finish the job" repairing the public finances. (http://thetim.es/1CF3ON2 [59])
The Guardian
LADBROKES CHIEF TO STEP DOWN AFTER FIVE-YEAR TERM
Richard Glynn, the embattled chief executive of Ladbrokes , is to step down from the bookmaker after five years in charge. The move came as Ladbrokes tried to claim that Glynn had completed a five-year turnaround of the business. (http://bit.ly/1vN51vg [60])
NORTH SEA OIL COMPANIES TO BE HELPED WITH 450 MILLION POUNDS OF TAX BREAKS
The government has introduced 450 million pounds ($705.92 million) of tax breaks to help North Sea oil companies at a time of plunging prices, rising costs and steep output declines. George Osborne said he would cut a "supplementary charge" rate from 32 percent to 30 percent, extend other breaks from six to 10 years and provide a new allowance targeted on certain areas. (http://bit.ly/1rYfj8a [61])
The Telegraph
VODAFONE CHIEF DENIES BID FOR VIRGIN MEDIA OWNER LIBERTY GLOBAL
Vodafone Chief Executive Vittorio Colao has denied his plans for a colossal takeover of Liberty Global, the owner of Virgin Media, following mounting speculation that a move for the cable giant was in the works. (http://bit.ly/1CFkjbO [62])
SPACE APE, HAILED AS A RIVAL TO ANGRY BIRDS MAKER ROVIO, RAISES FURTHER 4.5 MILLION POUNDS
Space Ape Games raised 4.5 million pounds in follow-on funding from a consortium of investors including Northzone, an early backer in Spotify, the Facebook Inc investor Accel Partners, Initial Capital and Connect Ventures. (http://bit.ly/1ymsxS8 [63])
Sky News
NPOWER BOSS: NEW BODY CAN HELP RESTORE TRUST
Paul Massara, the chief executive of npower, is calling for an independent body to scrutinise decisions by regulators and other stakeholders amid a period of rapid industry change. He said the move to create an organisation separate from Ofgem could be an important step towards rebuilding trust in the sector. (http://bit.ly/1FPyglx [64])
EX-DIAGEO BOSS WALSH IN FRAME FOR F1 CHAIR
Paul Walsh, the former chief executive of drinks giant Diageo Plc, has been approached about becoming the next chairman of Formula One (F1) motor racing. Walsh has been holding discussions about taking the role, with a board meeting of F1's owner understood to be scheduled for early next week. (http://bit.ly/1CFHoeC [65])
Fly on The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Jobless claims for week of November 29 at 8:30--consensus 295K
ANALYST RESEARCH
Upgrades
CSX (CSX) upgraded to Buy from Neutral at Citigroup
Deutsche Bank ups Mobileye (MBLY) to Buy on recent pullback
Energy Transfer Partners (ETP) upgraded to Outperform from Neutral at RW Baird
Gentex (GNTX) upgraded to Buy from Hold at KeyBanc
Hudbay Minerals (HBM) upgraded to Buy from Neutral at UBS
Infinity Pharmaceuticals (INFI) upgraded to Outperform from Neutral at Credit Suisse
Mobileye (MBLY) upgraded to Buy from Hold at Deutsche Bank
Procter & Gamble (PG) upgraded to Outperform from Neutral at Credit Suisse
Regency Centers (REG) upgraded to Buy from Neutral at BofA/Merrill
Downgrades
Anglo American (AAUKY) downgraded to Underperform from Buy at BofA/Merrill
BHP Billiton (BHP) downgraded to Neutral from Buy at BofA/Merrill
BIND Therapeutics (BIND) downgraded to Neutral from Outperform at Credit Suisse
BRF S.A. (BRFS) downgraded to Neutral from Buy at Goldman
DISH (DISH) downgraded to Underweight from Equal Weight at Barclays
Enerplus (ERF) downgraded to Sector Performer from Outperformer at CIBC
Kindred Biosciences (KIN) downgraded to Market Perform from Outperform at Leerink
Nevsun Resources (NSU) downgraded to Neutral from Buy at UBS
Public Storage (PSA) downgraded to Underweight from Hold at KeyBanc
Rio Tinto (RIO) downgraded to Underperform from Buy at BofA/Merrill
Thor Industries (THO) downgraded to Market Perform from Outperform at BMO Capital
Tupperware Brands (TUP) downgraded to Underperform from Market Perform at BMO Capital
Vermilion Energy (VET) downgraded to Sector Performer from Outperformer at CIBC
Wal-Mart (WMT) downgraded to Neutral from Buy at UBS
Initiations
Avis Budget (CAR) initiated with an Outperform at Credit Suisse
BlackRock (BLK) initiated with an Equal Weight at Barclays
Blackstone (BX) initiated with an Overweight at Barclays
Carlyle Group (CG) initiated with an Equal Weight at Barclays
Franklin Resources (BEN) initiated with an Equal Weight at Barclays
Garrison Capital (GARS) initiated with a Market Perform at JMP Securities
Hain Celestial (HAIN) initiated with a Perform at Oppenheimer
Intercept (ICPT) initiated with an Outperform at RW Baird
Invesco (IVZ) initiated with an Overweight at Barclays
KKR (KKR) initiated with an Overweight at Barclays
Legg Mason (LM) initiated with an Equal Weight at Barclays
Oaktree Capital (OAK) initiated with an Equal Weight at Barclays
T. Rowe Price (TROW) initiated with an Equal Weight at Barclays
COMPANY NEWS
Acacia Research (ACTG) subsidiary announces settlement agreement with Chase Paymentech
Allegiant Travel (ALGT) declares special dividend of $2.50 per share
American Realty (ARCP) to receive $60M settlement from RCS Capital
Archer Daniels (ADM) plans to boost dividend payout ratio to 30%-40% from 20%-25%
Array BioPharma (ARRY) to regain worldwide rights to Binimetinib
Best Buy (BBY) to sell Five Star business in China
Cache (CACH) received inquiry for potential sale, to review strategic alternatives
Costco (COST) reports Nov. SSS up 5%
Disney (DIS) increases annual dividend 34% to $1.15 per share
Enbridge (ENB) increases quarterly dividend 33% to 46.5c per share
Enbridge (ENB) raises dividend payout policy to 75%-85% of adjusted earnings
Facebook (FB) and ESET announce partnership to fight malware
Franklin Resources (BEN) announces special cash dividend of 50c per share
Franklin Resources (BEN) raises quarterly dividend to 15c from 12c per share
Hanwha SolarOne (HSOL) signs 20 MW module supply contract in China
ICA Fluor (FLR) to build $1.3B coker plant in Mexico
Kforce (KFRC) increases dividend 10% to 11c
Kindred Biosciences (KIN) to discontinue AtoKin study
NextEra Energy (NEE), Hawaiian Electric to combine in merger valued at $4.3B
Oncolytics Biotech's (ONCY) Reolysin shows positive preclinical results
Saga Communications (SGA) announces special cash dividend of $1.20 per share
Starboard Value raises stake in Integrated Silicon (ISSI) to 7.8% from 7.2%
UTi Worldwide (UTIW) says no current talks with DSVý A/S
Unilever (UN) to make Spreads business standalone unit
Verizon (VZ), Cox reach agreement to restore Fox 25 to FiOS TV
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Culp (CFI), Synopsys (SNPS), Verint Systems (VRNT), Avago (AVGO), PVH Corp. (PVH), Guess (GES), SeaChange (SEAC), New York & Co. (NWY), Tilly's (TLYS)
Companies that missed consensus earnings expectations include:
American Software (AMSWA)
Companies that matched consensus earnings expectations include:
Descartes Systems (DSGX), Aeropostale (ARO)
Sears (SHLD) reports Q3 EPS ($5.15), one estimate ($3.31)
SeaChange (SEAC) lowers FY15 EPs view (44c)-(36c) from (12c)-2c
PVH Corp. (PVH) lowers FY14 EPS view to $7.25-$7.30 from $7.30-$7.40
Guess (GES) lowers FY15 EPS view to $1.00-$1.10 from $1.05-$1.20
Guess (GES) sees Q4 EPS 53c-63c, consensus 69c
Aeropostale (ARO) sees Q4 EPS (37c)-(44c), consensus (36c)
NEWSPAPERS/WEBSITES
DirecTV (DTV) contract with HBO has clauses for streaming, WSJ reports
Google (GOOG) to challenge Microsoft (MSFT) in workplace software, WSJ reports
Intel (INTC) to spend $1.6B to upgrade China factory, Reuters says
Proposed U.K. tax hike would hit tech companies, NY Times says
TASER (TASR) looks expensive, Barron's says
SYNDICATE
Advanced Drainage (WMS) 10M share Secondary priced at $21.25
Agree Realty (ADC) files to sell 2.1M shares of common stock
Lexicon (LXRX) files to sell 4.7M shares for holders
Supernus (SUPN) files $112.8M mixed securities shelf, 12.8M shares for holders