China’s Stocks Sink Most Since 2009 as Turnover Jumps to Record (BBG) Greek Stocks, Bonds Tumble (WSJ) China tightens LGFV funding screws (BBG) Crude Rebounds From Five-Year Low Amid Shale-Oil Spending Curbs (BBG) Sexual threats, other CIA methods detailed in Senate report (Reuters) U.S. Takes Security Precautions Overseas Ahead of CIA Report (WSJ) Light-Speed Treasury Trading Governed by Rules Dating to 1998 (BBG) Amazon warns U.S. FAA it could move more drone research abroad (Reuters) Delhi to ban all internet taxi firms after Uber rape claim (Reuters) Supreme Group Fined $389 Million for Overcharging Pentagon (WSJ) A farcical masterclass in "monetary policy" - Central Bank Could Drop ‘Considerable Time’ Phrasing in Policy Statement (WSJ) More than 150 arrested in California during police killing protests (Reuters) U.S. Tech Giants Battle Europe’s Sovereign States (WSJ) Islamic State in Syria beheads man for blasphemy (Reuters) Putin Plan to Ship Gas to Europe Via Turkey Seen as Unrealistic (BBG) Korean Air Vice President Forces Plane Back to Gate Over Macadamia Nuts (BBG)
Overnight Media Digest
WSJ
* Federal Reserve officials are seriously considering an important shift in tone at their policy meeting next week: dropping an assurance that short-term interest rates will stay near zero for a "considerable time" as they look more confidently toward rate increases around the middle of next year. (http://on.wsj.com/1vyzSZa)
* Many doctors evaluating medical devices for the Food and Drug Administration have links to device makers the agency doesn't disclose. (http://on.wsj.com/1yxMhi2)
* From Berlin to Madrid, from London to Paris, U.S. technology companies are in a pitched battle with Europe's sovereign states. It is a clash that pits governments against the new tech titans, established industries against upstart challengers, and freewheeling American business culture against a more regulated European framework. (http://on.wsj.com/1udPUIy)
* The German tax code, which has helped build some of the world's wealthiest business dynasties by generally exempting corporate succession from inheritance tax, is under threat in court on constitutional grounds. (http://on.wsj.com/1yxMBgI)
* Supreme Group BV, the former supplier of food and beverages to U.S. troops in Afghanistan, agreed to pay $389 million in fines and damages after admitting it overcharged the Pentagon for fresh food and bottled water. (http://on.wsj.com/1wu2RUY)
* The former director of operations at Bernard Madoff Securities Llc was sentenced to 10 years in prison Monday. (http://on.wsj.com/1A92vQC)
FT
* The U.S. Supreme Court on Monday rejected BP's challenge to its multibillion dollar settlement agreement over the 2010 Gulf of Mexico oil spill, which the oil company complained has allowed unjustified payouts.
* Merck & Co Inc said it would buy Cubist Pharmaceuticals Inc for $8.4 billion plus assumption of debt, giving the major drugmaker an entry into the market for drugs that combat superbugs.
* Songbird Estates shareholder Madison International Realty has accepted Qatar Investment Authority and U.S. investor Brookfield Property Partners 350 pence per share offer for the British property company.
* The U.S. government on Monday sued Deutsche Bank AG , seeking to recoup more than $190 million from the German bank over alleged tax fraud more than 14 years ago.
* UK MPs who are part of the public accounts committee have accused PricewaterhouseCoopers of "selling tax avoidance on an industrial scale". Shire Plc was also on their radar in the course of a two-hour grilling. Both PwC and Shire denied the accusations.
NYT
* Microsoft Corp co-founder Bill Gates, Yahoo Inc co-founder Jerry Yang, Twitter Inc co-founder Evan Williams and others have invested $25 million in Change.org, the petitions website, to help it expand. Others in the group include prominent business leaders like the billionaire Richard Branson, eBay Inc co-founder Pierre Omidyar and LinkedIn Corp co-founder Reid Hoffman(http://nyti.ms/12H2oAK)
* Federal prosecutors in Manhattan on Monday sued Deutsche Bank AG, claiming that it owes the United States government about $190 million in unpaid taxes, penalties and interest. Prosecutors contend the tax liability stems from a transaction that Deutsche Bank undertook 14 years ago. (http://nyti.ms/161shNY)
* Novo Banco, the "good" bank created after the bailout of the Portuguese lender Banco Espirito Santo SA, said on Monday that it had agreed to sell its investment banking business to Haitong Securities of China. (http://nyti.ms/1GcoW9K)
* Teneo, a corporate advisory firm with an unusually broad array of businesses, has secured backing from the big private equity firm BC Partners, the company plans to disclose this week. (http://nyti.ms/1yuMd7H)
* Vice Media and 20th Century Fox have decided to make movies together, creating a film label focused on low-budget cinema that is "wild, weird, high-concept, left-field, crazy artistic, authentic and visceral." (http://nyti.ms/1w9Y9bA)
China
CHINA SECURITIES JOURNAL
- China Securities Regulatory Commission (CSRC) is making efforts to support the development of regional equity markets among ethnic minorities, its chairman Xiao Gang said.
SHANGHAI SECURITIES NEWS
- Two exchange traded funds (ETFs) will be launched under the Shanghai-Hong Kong stock connector scheme for the first time on Tuesday.
CHINA DAILY
- Foreign equipment makers are stepping up localisation efforts in the face of rising competition and sluggish demand, according to industry sources.
Britain
The Times
FORMER ASDA BOSS HELPS SET UP DISCOUNT FASHION CHAIN
A former Asda boss has joined forces with a group of retail veterans to launch a discount fashion chain. The children's and ladieswear group, named Project 50, plans to open 50 stores with 20 million pounds ($31.31 million) of funding from Christo Wiese, the South African billionaire. (http://thetim.es/1wUv1YS)
STAFF QUIT FOR A FEW PENCE MORE, SAYS JEWELLERY BOSS
The UK boss of Pandora has lamented a lack of loyalty among British shopworkers by complaining that sales staff at his jewellery stores are willing to ditch their employer for just a few extra pence per hour. (http://thetim.es/1D0MfHi)
The Guardian
AMAZON WORKERS AT GERMAN WAREHOUSE GO ON STRIKE
Workers at an Amazon.com's warehouse in Germany have gone on strike in a long-running dispute over pay and conditions. The trade union Verdi said it had called the strike at a distribution centre in Bad Hersfeld because Amazon had increased order volume and pressure on workers in the runup to Christmas. (http://bit.ly/1s4zk2w)
UK BANKING SYSTEM MAY DOUBLE IN SIZE BY 2050, SAYS BANK OF ENGLAND
Britain's exposure to its banks, already the largest in the G20 group of leading nations, is set to double in the next 35 years. The size of the UK banking system might roughly double from its current size to over 950 percent of GDP by 2050, the Bank of England said.(http://bit.ly/1wUxlz2)
The Telegraph
PWC DENIES "MASS MARKETING" TAX AVOIDANCE SCHEMES
PwC has denied "mass marketing" tax avoidance schemes to companies after being accused of helping firms avoid bills to the Treasury on an "industrial" scale. Kevin Nicholson, the accountant's head of tax for the UK, told MPs that the measures used by multinationals to manage taxes had been approved by Parliament. (http://bit.ly/1D0HHAQ)
THREE DIRECTORS TO LEAVE FCA
Three top officials Clive Adamson, Zitah McMillan and Victoria Raffe will leave the Financial Conduct Authority as part of a restructuring the watchdog said would create a "sharper focus", ahead of a report expected to criticise certain individuals at the regulator. (http://bit.ly/1z0zxTG)
Sky News
RBS DESERTS DUBAI OVER 6.7 BLN POUNDS REFINANCING PLAN
Royal Bank of Scotland is resisting plans for a restructuring of one of Dubai's largest conglomerates, underlining the UK lender's rapid retrenchment from an ill-fated global expansion. It raised concerns at a meeting of Dubai World's creditors in London last week, indicating that it is unhappy with a plan to extend a 6.7 billion pounds loan due for repayment in 2018 by a further four years. (http://bit.ly/160djI2)
GOCOMPARE FOUNDER NETS 44 MLN POUNDS IN ESURE DEAL
Hayley Parsons will step down as chief executive of the price comparison site as a result of the 95 million pounds deal with Esure Group Plc to buy the half of GoCompare.com Holdings Ltd it does not already own. The sale values the entrepreneur's remaining 23 percent stake in the business at almost 44 million pounds. (http://bit.ly/1D0S9rY)
The Independent
PLAYSTATION NETWORK DOWN: 'LIZARD SQUAD' CLAIM RESPONSIBILITY FOR HACK AND SAY MORE TO COME
The PlayStation Network was taken down by hackers this morning, the second large hack to hit Sony Corp in recent weeks and another attack by a group that has promised to keep assaulting games networks until Christmas. Lizard Squad, which was also involved in a hack of Xbox Live last week, claimed responsibility for the attack. (http://ind.pn/1se4grD)
UK FIRMS VIE FOR SHARE OF 170 BLN POUNDS IN ALGERIA DEALS
Pharmaceutical giant AstraZeneca Plc and oil services group Petrofac Ltd are among a raft of British companies poised to sign contracts worth up to 2 billion pounds with Algeria this week as the countries look to cement trade links and fight terrorism. (http://ind.pn/12Glo2r)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
NFIB small business optimism index for November at 7:30--consensus 96.5
JOLTS job openings for October at 10:00--consensus 4.79M
Wholesale trade inventories for October at 10:00--consensus up 0.2%
ANALYST RESEARCH
Upgrades
American Eagle (AEO) upgraded to Outperform from Perform at Oppenheimer
LHC Group (LHCG) upgraded to Outperform from Underperform at Credit Suisse
Lincoln Electric (LECO) upgraded to Buy from Neutral at Longbow
lululemon (LULU) upgraded to Outperform from Market Perform at Wells Fargo
Volcano (VOLC) upgraded to Buy from Hold at Needham
Downgrades
Baytex Energy (BTE) downgraded to Market Perform from Outperform at BMO Capital
Dover (DOV) downgraded to Sell from Hold at Deutsche Bank
DreamWorks Animation (DWA) downgraded to Sell from Hold at Topeka
GlaxoSmithKline (GSK) downgraded to Underperform from Neutral at BofA/Merrill
Louisiana-Pacific (LPX) downgraded to Neutral from Buy at Longbow
Nabors Industries (NBR) downgraded to Hold from Buy at Jefferies
Oceaneering (OII) downgraded to Hold from Buy at Jefferies
SEI Investments (SEIC) downgraded to Market Perform from Outperform at Keefe Bruyette
Schlumberger (SLB) downgraded to Hold from Buy at Jefferies
Shire (SHPG) downgraded to Neutral from Buy at BofA/Merrill
Spirit Airlines (SAVE) downgraded to Market Perform from Outperform at Raymond James
Supervalu (SVU) downgraded to Perform from Outperform at Oppenheimer
Turkcell (TKC) downgraded to Hold from Buy at Deutsche Bank
Verizon (VZ) downgraded to Neutral from Outperform at RW Baird
Walgreen (WAG) downgraded to Neutral from Buy at Mizuho
Initiations
ACE Limited (ACE) initiated with a Neutral at JPMorgan
Allstate (ALL) initiated with an Overweight at JPMorgan
Aon plc (AON) initiated with an Overweight at JPMorgan
Aptose Biosciences (APTO) initiated with an Outperform at Oppenheimer
Arch Capital (ACGL) initiated with an Overweight at JPMorgan
Arthur J. Gallagher (AJG) initiated with an Underweight at JPMorgan
Chubb (CB) initiated with an Underweight at JPMorgan
Cisco (CSCO) initiated with an Outperform at Wedbush
Dominion Diamond (DDC) initiated with a Buy at Citigroup
Everest Re (RE) initiated with a Neutral at JPMorgan
FibroGen (FGEN) initiated with a Buy at Citigroup
FibroGen (FGEN) initiated with a Buy at Goldman
FibroGen (FGEN) initiated with a Buy at Stifel
FibroGen (FGEN) initiated with an Outperform at RBC Capital
Fiesta Restaurant (FRGI) initiated with a Buy at Sterne Agee
Fifth Third Bancorp (FITB) initiated with a Buy at Guggenheim
Huntington Bancshares (HBAN) initiated with a Neutral at Guggenheim
Juniper (JNPR) initiated with a Neutral at Wedbush
Kate Spade (KATE) initiated with an Equal Weight at Stephens
KeyCorp (KEY) initiated with a Buy at Guggenheim
Landmark Infrastructure (LMRK) initiated with an Outperform at RBC Capital
Landmark Infrastructure (LMRK) initiated with an Outperform at RW Baird
Marsh & McLennan (MMC) initiated with an Overweight at JPMorgan
Michael Kors (KORS) initiated with an Overweight at Stephens
NXP Semiconductors (NXPI) initiated with an Outperform at Oppenheimer
Navios Maritime Midstream (NAP) initiated with a Buy at Citigroup
NeuroDerm (NDRM) initiated with a Buy at Jefferies
NeuroDerm (NDRM) initiated with a Buy at Roth Capital
New York & Co. (NWY) initiated with a Buy at Wunderlich
PMC-Sierra (PMCS) initiated with an Outperform at Northland
PartnerRe (PRE) initiated with a Neutral at JPMorgan
Progressive (PGR) initiated with a Neutral at JPMorgan
RenaissanceRe (RNR) initiated with an Overweight at JPMorgan
Sonus (SONS) initiated with an Outperform at Wedbush
The Joint (JYNT) initiated with a Buy at Roth Capital
Travelers (TRV) initiated with a Neutral at JPMorgan
Willis Group (WSH) initiated with an Underweight at JPMorgan
XL Group (XL) initiated with an Underweight at JPMorgan
COMPANY NEWS
Boeing (BA) said it forecasts strong demand for new commercial airplanes in 2015, resulting in about $124B in deliveries across the industry.
Amazon (AMZN) unveiled 'Make an Offer' for customers to negotiate lower prices
Deutsche Bank (DB) sued by U.S. over alleged scheme to avoid income taxes
Talisman Energy (TLM) confirmed being approached by parties, including Repsol (REPYY), with regards to various transactions
Cubist (CBST) CEO said Cubicin patent ruling will not affect Merck (MRK) transaction (HSP)
Verizon (VZ) said that it expects Q4 impacts of promotional offers will pressure wireless EBITDA and EPS
Spirit Airlines (SAVE) said preliminary November traffic increased 15.7% and forecast compression in fare structure for close-in booking
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
UTi Worldwide (UTIW), HD Supply (HDS), Argan (AGX), Diamond Foods (DMND)
Companies that missed consensus earnings expectations include:
ABM Industries (ABM), Medley Capital (MCC), Phototronics (PLAB), Pep Boys (PBY), Good Times Restaurants (GTIM), H&R Block (HRB)
NEWSPAPERS/WEBSITES
Sony (SNE) hacker releases additional private data, issues threat, Re/code reports
Amazon.com (AMZN) testing faster deliveries through bikes, drones, WSJ reports
Amazon (AMZN) warns of moving more drone research abroad, WSJ reports
Cubist (CBST) loses bid to stop Hospira's (HSP) generic Cubicin after 2016, Bloomberg reports
Lone Star joins Springleaf (LEAF) as bidder for Citigroup (C) OneMain unit, Bloomberg reports
Merck (MRK) acquisition of Cubist (CBST) could be a 'winner,' Barron's says
