· Ferguson in Flames (Reuters)
· Ferguson Cop Told Grand Jury He Feared for His Life (BBG)
· Sharpton: Grand Jury Announcement ‘An Absolute Blow’ (Daily Caller)
· Gunshots echo as violence returns to Ferguson, protests across U.S. (Reuters)
· BoJ members warned on costs of more easing (FT)
· Hagel Exit Shows Obama Has Taken Power Away From Pentagon (BBG)
· Ukraine leader, under pressure from West, pledges new government soon (Reuters)
· Eurozone Stagnation Poses Major Risk to Global Growth, OECD Warns (WSJ)
· ECB’s Coeure Says Officials Won’t Rush as They Debate All Assets (BBG)
· China Money Rate Drops as PBOC Cuts Yield Paid in Repo Auction (BBG)
· Why $4 Trillion of China Stocks Are Hostage to a Few IPOs (BBG)
· U.S. prosecutors to interview London FX traders (Reuters)
· Dollar Bulls Amass Record $48 Billion Stake in Rally (BBG)
· Citigroup ‘Idea Dinners’ Cited in Finra Fine Over Tips (BBG)
· FDA to Require Calorie Counts at Restaurants (WSJ)
· Obamacare premiums: Going up unless you shop (CNN)
· The 51% Chinese Stock Rout That Analysts Never Saw Coming (BBG)
*Overnight Media Digest*
WSJ
* The Obama administration plans to unveil final labeling rules on Tuesday that require restaurants with at least 20 locations to display the calorie count of food items on their menus. The changes, part of the 2010 Affordable Care Act, will bring the type of calorie tallies on public view across New York City and Seattle to chain restaurants nationwide. (http://on.wsj.com/1C8fnMi)
* An investment firm run by John Raymond, the son of former Exxon Mobil Corp's chief executive Lee Raymond, has plowed about $3.2 billion into companies set up by former Chesapeake Energy Corp's CEO Aubrey McClendon under a structure that lets it keep control. Energy & Minerals Group (EMG) manages about $17.1 billion and its focus on low-cost production has helped EMG's funds produce strong returns. (http://on.wsj.com/1xQ9pf7)
* A grand jury declined to indict a white police officer in the shooting of an unarmed black teenager whose death in the St. Louis suburb of Ferguson became a national flash point on race, justice and policing. The decision released on Monday night led to renewed unrest after the region faced weeks of protest that turned violent at times this summer. (http://on.wsj.com/1tfU0PF)
* Chuck Hagel is stepping down as defense secretary, forced out after White House officials and the Pentagon chief couldn't agree as war flared again in the Middle East. Hagel had been tapped two years ago for the top Pentagon job with the mandate of overseeing budget cuts and keeping the U.S. out of another overseas war. (http://on.wsj.com/11rOO47)
* A large California pension fund is searching for a new investment chief amid concerns about an outside firm's investment strategy, the latest clash between public retirement systems and external advisers. The board of San Diego County Employees Retirement Association authorized the move in an 8-1 vote that requires the $10.5 billion fund to install an internal investment chief instead of relying on Houston-based Salient Partners LP for that role. (http://on.wsj.com/1xQbFTE)
* The top U.S. health regulator warned Monday that a common surgical tool should not be used on most women during hysterectomies, a decision that caps nearly a year of debate and is expected to sharply curtail a procedure that the agency said can spread hidden cancer. (http://on.wsj.com/1HDRL2g)
* Yahoo, owner of the Flickr photo-sharing site, has upset some photographers by selling canvas prints of photos uploaded to the site and keeping all of the profits. (http://on.wsj.com/1zT5j59)
* The U.S. took a step Monday toward imposing tariffs on Chinese-made tires in response to efforts by workers in the American tire industry to prevent jobs from moving to China. The U.S. Commerce Department issued a preliminary finding that typical Chinese-made tires for passenger cars and light trucks were unfairly subsidized and should be subject to punitive tariffs ranging from 17.7-81.3 percent, depending on the manufacturer. (http://on.wsj.com/1znOQVF)
FT
Spanish construction firm FCC's largest shareholder is in exclusive talks to sell Mexican billionaire Carlos Slim its rights to buy shares through a planned 1 billion euro ($1.24 billion) capital increase.
Telecom giant BT Group PLC confirmed on Monday that it had been approached by EE and O2 about a possible transaction in which BT would acquire a UK mobile business.
Canadian buyout firm Onex Corp said it would buy Swiss packaging group SIG Combibloc Group AG for up to 3.57 billion euros ($4.43 billion).
Wanda, the Shanghai-based property entertainment conglomerate and US private equity group Providence are considering a bid for Infront Media, the Swiss sports marketing group.
NYT
* Ten years after a crash that killed a passenger, a Texas woman's guilty plea was overturned after it became clear that the General Motors Co's faulty ignition switch was to blame.(http://nyti.ms/1xvQUJ4)
* Richard Baker, the chief executive of the Hudson's Bay Co which owns Saks, announced that Hudson's Bay had taken out a loan against the Saks Fifth Avenue flagship that values the department store, one of New York's temples of luxury retailing, at nearly $4 billion, making it one of the most valuable retail properties in the country.(http://nyti.ms/1zTk4EX)
* Honda Motor Co Ltd grossly underreported to federal regulators the number of deaths and injury claims linked to possible defects in its vehicles for more than 10 years. An audit found that Honda did not report 1,729 written claims or notices on injuries or deaths from mid-2003 through mid-2014. (http://nyti.ms/1ya46qz)
* The Financial Industry Regulatory Authority fined Citigroup Inc $15 million for failing to adequately supervise its research analysts' interactions with the bank's clients. Citigroup agreed to settle the case with the authority without admitting or denying the accusations. (http://nyti.ms/1rlPcYD)
* Minnesota's attorney general has accused Savers Inc's Thrift Stores of pocketing more than $1 million that should have gone to charities including the Lupus Foundation of Minnesota and Vietnam Veterans of America. Savers would keep nearly all the money it raised from the sale of such items, the attorney general said in a report. (http://nyti.ms/1tfQQeS)
* Universa Investments, a hedge fund founded by Mark Spitznagel, is one of the few firms that is set up with the aim of making money in an economic and financial collapse. At Universa, Spitznagel's strategy stems from his skepticism toward government efforts to revive the economy. (http://nyti.ms/1yaajCU)
* Less than 48 hours after the United States President Obama nominated Antonio Weiss, a longtime adviser on mergers at the investment bank Lazard and a Democratic supporter, to become the under secretary of treasury for domestic finance, Senator Elizabeth Warren denounced the appointment and said that she would vote against his confirmation. Warren was furious that the president would nominate someone from Wall Street. (http://nyti.ms/1uT0E2X)
* Anthony Noto, the Twitter Inc's chief financial officer, appeared to accidentally disclose some confidential corporate strategy plans on Twitter itself. Soon after Kevin Roose, a senior editor at the cable channel Fusion pointed out Noto's problem, it appears that he deleted the message in question. (http://nyti.ms/1AKW4af)
* Goldman Sachs Inc will disclose how much it earned on a set of complex derivatives trades at the heart of a lawsuit brought by Libya's sovereign wealth fund. Goldman will disclose its margin, profit and loss from the day the trades were booked as well as a month later. It will also disclose the reserves it set aside for each trade. (http://nyti.ms/1HDRHj4)
* The Chapter 11 filing by Aereo prompts a larger question of whether bankruptcy courts should actively police debtors' motives for filing cases, or should they let in all who come and meet the statutory requirements. (http://nyti.ms/1vjb8bO)
* The British telecommunications giant BT Group Plc said it was in early-stage takeover talks with O2, the British cellphone carrier owned by the Spanish company Telefonica SA. (http://nyti.ms/1yakTdi)
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)
** 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)
** 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)
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)
** 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)
** 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)
China
CHINA SECURITIES JOURNAL
- In the first three quarters of this year, China's online insurance business earned 62.2 billion yuan ($10.13 billion), said Zhou Yanli, vice-president of China Insurance Regulatory Commission (CIRC).
- China has abolished an initial public offering sponsorship system, according to the latest policy published by the State Council, or cabinet. Since 2004, Chinese companies seeking IPOs on the stock exchanges in Shanghai or Shenzhen have been required to obtain the endorsement of a qualified sponsor, usually securities firms or investment banks, whose duty is to make sure financial data and other information provided in IPO prospectuses are truthful.
SHANGHAI SECURITIES NEWS
- The value of total assets of China's insurance industry was approaching 10 trillion yuan, up 16.4 percent from the beginning of this year, data published by CIRC showed.
- China's State Administration of Press, Publication, Radio, Film and Television said it would simplify the approval process for mobile games by the end of this year.
- China will promote and help mainland Internet companies to go public on the A-share market, a Chinese official said in an interview.
CHINA DAILY
- Eighty percent of China's richest families send their children abroad to be educated, compared with 1 percent of Japan's richest families, the Hurun Research Institute reported.
PEOPLE'S DAILY
- The sarcastic phrase - "APEC blue" - created by Chinese citizens during the Asia-Pacific Economic Cooperation (APEC) meeting in Beijing is a warning to the government to speed up its anti-pollution campaign, the paper said in a commentary.
Britain
The Times
Benefits for OAPs will cost an extra 12 bln pounds a year
Taxpayers must find 12 billion pounds ($18.83 billion) a year to fund pensioner benefits by 2020 even though most retired people are better off than when they were in work, according to a stark analysis of the impact of an ageing population. (http://thetim.es/1y9AucT)
BT in early talks to buy O2
The shifting sands of the British telecoms sector have blown in the direction of BT Group Plc after it revealed that it has opened talks to buy back O2, the mobile phone unit that it sold 13 years ago. (http://thetim.es/1vH6iXc)
The Guardian
RBS bonuses under fire over restructuring group testimony
Bonuses handed out to senior bosses at Royal Bank of Scotland Group Plc are facing renewed scrutiny after the chairman of the bailed-out bank apologised for inaccuracies in evidence given to MPs about its restructuring division. (http://bit.ly/1r58jve)
Petrofac issues profit warning
Energy services company Petrofac Ltd said profit for 2015 will fall 25 percent as slowing demand in China and abundant U.S. output cuts oil price. (http://bit.ly/1C4kdtZ)
The Telegraph
Blackout prevention plans in doubt after back-up plant fails
Britain's plans to keep the lights on this winter have been thrown into fresh doubt after a power plant supposed to provide back-up electricity supplies failed during testing. (http://bit.ly/15hSjw8)
Deloitte to probe Bank payment systems collapse
The Bank of England has announced that big-four auditor Deloitte will conduct the review into the glitch that saw UK payment systems go down for 10 hours last month. (http://bit.ly/1zT0QPU)
Sky News
Supermarket wars 'failing' food producers
The supermarket price war may be good news for consumers but a report suggests its effects have sparked a big jump in insolvencies among food producers. (http://bit.ly/1C7fVCa)
BG on alert over 'red-top' for new boss' pay The FTSE-100 oil producer BG Group Plc is bracing itself for a massive shareholder revolt over a 12 million stg payment to its next chief executive after a key investor group opposed the deal.
The Independent
Aviva shares fall as City casts doubt on Friends deal
Investors ditched Aviva Plc shares today as analysts began to question its planned 5.6 billion stg merger with rival insurer Friends Life Group Ltd. (http://ind.pn/1y6LW8c)
George Osborne set to miss target to clear backlog of business rates appeals
Chancellor George Osborne is likely to miss his target for clearing the backlog of business rates appeals, according to figures seen by The Independent. (http://ind.pn/1ziZ0GW)
*Fly On The Wall Pre-Market Buzz*
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Q3 GDP will be reported at 8:30--consensus up 3.3%
FHFA house price index for September at 9:00--consensus up 0.4%
Richmond Fed manufacturing index for November at 10:00--consensus 16
Consumer confidence for November at 10:00--consensus 96.5
ANALYST RESEARCH
Upgrades
Boyd Gaming (BYD) upgraded to Neutral from Underperform at Macquarie
Montpelier Re (MRH) upgraded to Equal Weight from Underweight at Barclays
Petrobras (PBR) upgraded to Buy from Neutral at Citigroup
TJX (TJX) upgraded to Overweight from Neutral at JPMorgan
United Technologies (UTX) upgraded to Outperform from Market Perform at Wells Fargo
Williams Partners (WPZ) upgraded to Buy from Hold at Jefferies
Downgrades
ASML (ASML) downgraded to Neutral from Buy at UBS
Aviv REIT (AVIV) downgraded to Sector Perform from Outperform at RBC Capital
BankUnited (BKU) downgraded to Neutral from Buy at Guggenheim
Brocade (BRCD) downgraded to Hold from Buy at Wunderlich
CyberArk (CYBR) downgraded to Market Perform from Outperform at William Blair
CyberArk (CYBR) downgraded to Neutral from Buy at Nomura
Global Brass and Copper (BRSS) downgraded to Neutral from Buy at Goldman
Hospitality Properties (HPT) downgraded to Market Perform at Wells Fargo
Level 3 (LVLT) downgraded to Neutral from Outperform at Macquarie
Pinnacle Entertainment (PNK) downgraded to Neutral from Buy at Sterne Agee
Tupperware Brands (TUP) downgraded to Neutral from Buy at B. Riley
Initiations
3M Company (MMM) initiated with an Underperform at RBC Capital
Actuant (ATU) initiated with a Sector Perform at RBC Capital
Ametek (AME) initiated with an Outperform at RBC Capital
AstraZeneca (AZN) initiated with an Outperform at Exane BNP Paribas
Avago (AVGO) initiated with a Buy at CLSA
Carlisle (CSL) initiated with a Sector Perform at RBC Capital
Colfax (CFX) initiated with a Sector Perform at RBC Capital
Crane (CR) initiated with an Outperform at RBC Capital
Fifth Street Asset (FSAM) initiated with a Buy at MLV & Co.
Flowserve (FLS) initiated with an Underperform at RBC Capital
General Electric (GE) initiated with an Outperform at RBC Capital
GlaxoSmithKline (GSK) initiated with an Underperform at Exane BNP Paribas
Grainger (GWW) initiated with a Sector Perform at RBC Capital
HD Supply (HDS) initiated with a Sector Perform at RBC Capital
Hanesbrands (HBI) initiated with a Buy at UBS
HomeStreet (HMST) initiated with a Neutral at Macquarie
Honeywell (HON) initiated with an Outperform at RBC Capital
IDEX Corp. (IEX) initiated with an Outperform at RBC Capital
Illinois Tool Works (ITW) initiated with a Sector Perform at RBC Capital
Ingersoll-Rand (IR) initiated with a Sector Perform at RBC Capital
Magnum Hunter (MHR) coverage assumed with a Buy at Canaccord
ManTech (MANT) initiated with a Buy at Maxim
Noodles & Company (ndls) initiated with a Buy at Janney Capital
Novartis (NVS) initiated with an Outperform at Exane BNP Paribas
Novo Nordisk (NVO) initiated with a Neutral at Exane BNP Paribas
Nu Skin (NUS) initiated with a Neutral at Citigroup
Pentair (PNR) initiated with an Outperform at RBC Capital
Roche (RHHBY) initiated with an Outperform at Exane BNP Paribas
Roper Industries (ROP) initiated with an Outperform at RBC Capital
SPX Corp. (SPW) initiated with a Sector Perform at RBC Capital
Sanofi (SNY) initiated with an Outperform at Exane BNP Paribas
SciQuest (SQI) initiated with a Neutral at JPMorgan
Tyco (TYC) initiated with an Outperform at RBC Capital
Unit Corp. (UNT) initiated with a Buy at Brean Capital
United Technologies (UTX) initiated with an Outperform at RBC Capital
WESCO (WCC) initiated with an Outperform at RBC Capital
COMPANY NEWS
Mallinckrodt (MNK) said Questcor received subpoena from FTC in June
Banco Santander (SAN) named CFO Jose Antonio Alvarez as CEO
Outerwall (OUTR) boosted Redbox DVD rental price to $1.50
Nuance (NUAN) said well positioned for return to growth in FY15
Hormel Foods (HRL) increased dividend 25%, making the annual dividend $1.00 per share in 2015
ING Groep (ING) to cut 1,700 jobs over the next three years
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Taomee (TAOM), Yingli Green Energy (YGE), Copart (CPRT), Post Holdings (POST), Qihoo 360 (QIHU), Dycom (DY), Workday (WDAY), Brocade (BRCD), Nuance (NUAN), Palo Alto (PANW), Violin Memory (VMEM)
Companies that missed consensus earnings expectations include:
American Woodmark (AMWD), Hormel Foods (HRL), Tech Data (TECD), Dangdang (DANG), Aegean Marine (ANW), Amira Nature Foods (ANFI)
Companies that matched consensus earnings expectations include:
Sungy Mobile (GOMO)
Hormel Foods (HRL) sees FY15 non-GAAP EPS $2.45-$2.55, consensus $2.59
Hormel Foods (HRL) expects to exceed 10% earnings growth in FY15, consensus $2.59
Nuance (NUAN) Sees FY15 EPS $1.10-$1.20, consensus $1.15
Nuance (NUAN) sees Q1 EPS 21c-23c, consensus 27c
Workday (WDAY) sees Q4 revenue $219M-$222M, consensus $220.46M
Brocade (BRCD) sees Q1 EPS 23c-25c, consensus 24c
Palo Alto (PANW) sees Q2 EPS 16c-17c, consensus 16c
NEWSPAPERS/WEBSITES
Honda (HMC) admits to underreporting death and injury incidents, WSJ reports
Wal-Mart's (WMT) Duncan Mac Naughton expected to announce departure, WSJ reports
HBO (TWX), Tencent (TCEHY) sign deal to distribute dramas, movies online in China, WSJ reports
Sony Pictures Entertainment (SNE) suffers widespread hack, LA Times reports
Actavis (ACT) plans to cut employees and expand in China, Bloomberg reports (AGN)
Canadian funds near $85 per share deal for Loral Space (LORL), Bloomberg reports
SYNDICATE
Golden Minerals (AUMN) files to sell 8.7M shares for holders
Medgenics (MDGN) files to sell common stock
Revolution Lighting (RVLT) files automatic common stock shelf
Reported by Zero Hedge 21 minutes ago.