Yellen faces Senate grilling on Fed rate policy, transparency (
Reuters)
Big Banks Face Scrutiny Over Pricing of Metals (
WSJ)
Greece makes more concessions to euro zone, Germany sets vote (
Reuters)
Time for another executive order: Longer Lives Hit Companies
With Pension Plans Hard (
WSJ)
The Syria invasion "false flag" approaches: Islamic State in
Syria abducts at least 90 from Christian villages (
Reuters)
Why Lenders Love the $2.5 Million Home Loan (
BBG)
Reuters journalist Maria Golovnina dies in Pakistan aged 34 (
Reuters)
Qatar’s Ties to Militants Strain Alliance (
WSJ)
Turkish Central Bank Cuts All Three Main Interest Rates (
BBG)
The Secret Tax Lives of the Rich and Famous (
BBG)
Failed Nominee Weiss Morphs Into Key Debt Official at Treasury
(
BBG)
Home Depot sets $18 billion buyback (
Reuters)
Dish Chairman Ergen to Add CEO Title (
WSJ)
Overnight Media Digest
WSJ
* U.S. officials are investigating at least 10 major banks for
possible rigging of precious-metals markets, even though European
regulators dropped a similar probe after finding no evidence of
wrongdoing, according to people close to the inquiries.(
http://on.wsj.com/1a9RLuJ)
* U.S. and Iran are exploring a nuclear deal that would keep
Tehran from amassing enough material to make a bomb for at least a
decade, but could then allow it to gradually build up its
capabilities again.(
http://on.wsj.com/1a9Shc3)
* A federal jury in New York on Monday found the Palestinian
Authority and the Palestine Liberation Organization liable for
supporting six terrorist attacks in Israel more than a decade ago
and ordered the groups to pay $218.5 million to the American
victims' families.(
http://on.wsj.com/1a9SMmn)
* J.P. Morgan Chase & Co is preparing to charge large
institutional customers for some deposits, citing new rules that
make holding money for the clients too costly, according to a memo
reviewed by the Wall Street Journal and people familiar with the
plan.(
http://on.wsj.com/1a9SUCB)
* Honda Motor Co, already coping with large safety recalls over
quality glitches and faulty air bags, said on Monday its chief
executive would step down to make way for a low-profile engineer
with extensive international experience.(
http://on.wsj.com/1a9TDDC)
* Dish Network Corp said Chief Executive Joe Clayton will retire
at the end of March and will be succeeded by Chairman Charlie
Ergen, who will take the helm again as the satellite-TV company is
pushing to diversify into new lines of business.(
http://on.wsj.com/1LAB9cV)
FT
UK's agricultural sector is in a "disturbing" decline as farmers
are unable to produce enough food to keep up with the growing
population of the country, the National Farmers Union is set to
warn on Tuesday.
Spending on new North Sea oil and gas projects is to drop by a
third this year, energy producer Oil & Gas UK, which represents
the offshore industry, will warn on Tuesday.
Former British Foreign Secretary Sir Malcolm Rifkind was
fighting to save his reputation last night after he was suspended
by the Conservative Party from their parliamentary group and a
disciplinary investigation was launched in the wake of
cash-for-access allegations.
UK's second-biggest energy supplier SSE PLC has been named and
shamed by the government for failing to pay the minimum wage to all
its employees.
NYT
* Already forced to apologize for helping clients hide their
income from tax authorities, HSBC had to explain on Monday why its
chief executive went to lengths for years to hide his bonus, at
least from his co-workers.(
http://nyti.ms/18gOppd)
* Mary Jo White leads the Securities and Exchange Commission;
her husband, John, practices law at an old-guard firm as elite as
the corporations it represents. Together, they are a legal power
couple that straddles Wall Street and Washington like few others.(
http://nyti.ms/18gOrxl)
* Not only are retail prices likely to remain at current levels,
but card companies like American Express Co, Visa Inc and
MasterCard Inc may also end up raising their annual fees and
lending rates because they will need to make up revenue lost from
the merchant fees in order to pay for the myriad rewards programs
they have created. (
http://nyti.ms/1AoCM9Z)
* Banks and law firms have discussed setting up a legal group
that would be affiliated with the banking industry's main forum for
sharing information about threats from hackers, online criminals
and even nation states - the Financial Services Information Sharing
and Analysis Center. Several people briefed on those discussions
said those talks would most likely lead to the establishment of
such a group by the end of the year.(
http://nyti.ms/1FldEAG)
* Citigroup Inc is selling a development site that will most
likely house an apartment complex in what has become one of the New
York City's hottest residential neighborhoods.(
http://nyti.ms/1GnjvGN)
* Greece on Monday delayed the submission of the proposed
reforms that European creditors have made a condition of the
country's financial aid.(
http://nyti.ms/1A2lomv)
* Syngenta AG, a Swiss chemicals company, produces one of
America's most popular herbicides. It is called atrazine, and 73.7
million pounds of the chemical compound were applied in the United
States in 2013. It was used on more than half of all corn crops,
two-thirds of sorghum and up to 90 percent of sugar cane. But
Syngenta cannot sell atrazine to farms in its own backyard.(
http://nyti.ms/1vu7X3s)
* Honda Motor Co Ltd said on Monday that it would replace its
president and chief executive, Takanobu Ito, a sign the Japanese
automaker may be trying to draw a line under recent quality
problems.(
http://nyti.ms/1FRHznx)
Canada
THE GLOBE AND MAIL
** Canada's biggest railway reached a last-minute tentative
agreement with one of its unions on Monday, averting a lockout that
threatened to delay imports from Asia and compound a U.S. West
Coast port logjam. (
http://bit.ly/1AoX3w6)
** Royal Dutch Shell Plc has scrapped plans for a long-delayed
oil sands mine, becoming the latest company to pull the plug on a
major Alberta expansion as crude prices hover near multiyear lows.
(
http://bit.ly/1MNqoFQ)
** Keystone XL's supporters - back in Washington after a
congressional recess - will deliver on Tuesday the bill to U.S.
President Barack Obama that attempts to wrest control of the
pipeline's approval. (
http://bit.ly/18h9aAV)
NATIONAL POST
** Shell Canada Ltd says it is pulling its regulatory
application for the proposed Pierre River oilsands project north of
Fort McMurray, Alberta, to focus on existing operations. (
http://bit.ly/1zcnU9L)
** Magna International Inc is selling its battery-pack business
to Samsung SDI Co Ltd, giving the South Korean electronics giant
access to new electric-vehicle customers in Europe, North America
and China. (
http://bit.ly/1D6U7Sa)
** One of Canada's biggest mobile companies is hoping the courts
will overturn a decision by the telecom regulator that is aimed at
creating greater price fairness for mobile TV services. Bell
Mobility Inc has filed an application with the Federal Court of
Appeal, asking that it be allowed to appeal a Jan. 29 ruling, which
called the service provider's pricing model for its mobile TV app
"unlawful". (
http://bit.ly/1MOouET)
Britain
The Times
APPLE TO INVEST 1.7 BILLION EUROS IN GREEN EUROPEAN DATA
CENTRES
Apple Inc is to spend 1.7 billion euros ($1.93 billion) opening
data centres in Ireland and Denmark in its largest ever investment
in Europe. The centres will support Siri, Apple's artificially
intelligent personal assistant, as well as its App and iTunes
stores, its maps and iMessage applications, the company said. (
http://thetim.es/1Bg7VPd)
SNOOPING TRADERS 'FORCED' HSBC CHIEF TO OPEN OFFSHORE
ACCOUNT
HSBC Holdings Plc chief executive has said it was the ability of
traders at the bank who were routinely able to spy on the bank
accounts of fellow employees that forced him to set up a secret
offshore stash for his bonuses from the lender. (
http://thetim.es/1DfCCBG)
The Guardian
MP MALCOLM RIFKIND CLINGS ON TO CHAIRMANSHIP OF INTELLIGENCE
COMMITTEE
Malcolm Rifkind was clinging on to chairmanship of parliament's
intelligence and security committee (ISC) on Monday, despite being
suspended from the party whip. David Cameron said the allegations
of cash for access made against Rifkind were very serious, but
added it was a matter for the ISC to decide if he could continue as
its chair. (
http://bit.ly/1LwAabX)
HSBC SCANDAL: GEORGE OSBORNE SIGNALS NEW TAX EVASION
MEASURES
New financial and civil penalties for bankers and accountants
who aid and abet tax evasion and aggressive tax avoidance are
expected to be included in the budget next month in the wake of the
HSBC tax avoidance scandal. Information about the planned fines
emerged as George Osborne made his first detailed parliamentary
response to the HSBC affair. (
http://bit.ly/1FQE0hp)
The Telegraph
EU LAUNCHES FULL INVESTIGATION INTO GE'S 9 BILLION POUNDS BID
FOR ALSTOM
EU regulators have launched a full investigation into General
Electric Co's 12.4 billion euros bid for Alstom power equipment
business. The European Commission is concerned the deal will leave
Siemens as the only remaining competitor to GE in Europe in the
market for heavy-duty gas turbines used in gas-fired power plants.
(
http://bit.ly/1Flfgdw)
HUNTERS TO LIST ON STOCK MARKET, APPOINTS EX-COUNTRYWIDE BOSS AS
CEO
Hunters, the UK's sixth-largest estate agent, has appointed
former Countrywide chief executive Harry Hill as its new boss to
lead it through a stock market flotation. The group will raise up
to 2.5 million pounds privately prior to listing on London's Aim
index, in a move that will see investors, including staff and
partners, invited to buy shares. (
http://bit.ly/1a7ES4m)
Sky News
TESCO EXEC LEAVES WEEKS AFTER SUSPENSION ENDS
Sean McCurley, a senior buying executive in the Tesco Plc
convenience operations, left the company in recent days. His
departure comes amid a huge redundancy programme at the retailer's
head office, with new chief executive Dave Lewis committed to
slashing the company's cost-base by hundreds of millions of pounds.
(
http://bit.ly/17rIP2a)
MINIMUM PAY RECOMMENDED TO RISE TO 6.70 POUNDS AN HOUR
Business Secretary Vince Cable said the Government would decide
whether to adopt the Low Pay Commission's (LPC) recommendation and
make an announcement later. The commission suggested that adults
should be paid a minimum of 6.70 pounds per hour, those aged 18 to
20 5.30 pounds an hour, those aged 16 to 17 3.87 pounds an hour and
those on apprenticeships 2.80 pounds an hour. (
http://bit.ly/1BgzuIa)
The Independent
HEATHROW MUST EXPAND TO COMPETE WITH INTERNATIONAL RIVALS, SAYS
AIRPORT BOSS
Heathrow must be expanded to prevent Britain falling behind its
international rivals, its chief executive has warned. Following the
London airport's busiest ever year, John Holland-Kaye said
cross-party support was needed for Howard Davies' Airports
Commission, which is expected to publish its final report after the
General Election. (
http://ind.pn/1A0Poiv)
TREASURY MAKES 500 MILLION POUNDS SELLING LLOYDS SHARES AS IT
REDUCES ITS STAKE IN THE BANK
The Treasury has raised around 500 million pounds by selling
shares in Lloyds Banking Group. The move marks a further reduction
in its stake in the bank it bailed out in 2008. The latest trade
takes its holding down to 23.9 percent and the total amount raised
from the process to just under 8 billion pounds. (
http://ind.pn/1DN87nQ)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
S&P Case-Shiller 20-city house price index for December
at 9:00--consensus up 0.6%
Markit U.S. services PMI for February at 9:45--consensus 54.5
Federal Reserve Chair Janet Yellen Speech to be released at
10:00
Consumer confidence for February at 10:00--consensus 99.5
Richmond Fed manufacturing index for February at
10:00--consensus 6
ANALYST RESEARCH
Upgrades
Chegg (CHGG) upgraded to Outperform from Market Perform at BMO
Capital
Coach (COH) upgraded to Outperform from Perform at
Oppenheimer
DSW (DSW) upgraded to Buy from Neutral at Sterne Agee
Memorial Production (MEMP) upgraded to Overweight from
Neutral at JPMorgan
Norwegian Cruise Line (NCLH) upgraded to Buy from Neutral at
UBS
Peugeot (PUGOY) upgraded to Buy from Hold at Deutsche
Bank
Downgrades
American Airlines (AAL) downgraded to Market Perform from
Outperform at Cowen
Armstrong World (AWI) downgraded to Hold from Buy at KeyBanc
Basic Energy (BAS) downgraded to Outperform from Strong Buy
at Raymond James
CSC (CSC) downgraded to Hold from Buy at Stifel
Chevron (CVX) downgraded to Perform from Outperform at
Oppenheimer
Choice Hotels (CHH) downgraded to Underweight from Equal
Weight at Barclays
Eni SpA (E) downgraded to Underperform from Hold at Jefferies
Fifth Street Asset (FSAM) downgraded to Neutral from
Outperform at Credit Suisse
HSBC (HSBC) downgraded to Neutral from Buy at UBS
Home Loan Servicing (HLSS) downgraded to Neutral from
Overweight at Piper Jaffray
Huntington Ingalls (HII) downgraded to Underperform from
Neutral at Credit Suisse
Kayne Anderson (KED) downgraded to Hold from Buy at Stifel
Newmont Mining (NEM) downgraded to Neutral from Overweight at
HSBC
Polypore (PPO) downgraded to Market Perform from Outperform
at William Blair
Rosetta Resources (ROSE) downgraded to Hold from Buy at
Topeka
Rosetta Resources (ROSE) downgraded to Market Perform from
Outperform at BMO Capital
Rosetta Resources (ROSE) downgraded to Neutral from Buy at
BofA/Merrill
Sprint (S) downgraded to Sell from Neutral at BTIG
Timmins Gold (TGD) downgraded to Sector Perform from
Outperform at RBC Capital
Transocean Partners (RIGP) downgraded to Underweight from
Equal Weight at Barclays
Vodafone (VOD) downgraded to Underperform from Neutral at
BofA/Merrill
Williams Partners (WPZ) downgraded to Neutral from Buy at
Citigroup
Williams (WMB) downgraded to Neutral from Buy at
Citigroup
Initiations
BP Prudhoe Bay (BPT) initiated with an Underweight at JPMorgan
InfraREIT (HIFR) initiated with a Buy at Citigroup
InfraREIT (HIFR) initiated with an Outperform at RBC Capital
InfraREIT (HIFR) initiated with an Outperform at Wells Fargo
Interactive Intelligence (inin) initiated with a Market
Perform at William Blair
Newtek Business Services (NEWT) initiated with a Market
Perform at JMP Securities
Shake Shack (SHAK) initiated with a Buy at Stifel
Shake Shack (SHAK) initiated with a Hold at Jefferies
Shake Shack (SHAK) initiated with a Market Perform at William
Blair
Shake Shack (SHAK) initiated with a Neutral at Goldman
Shake Shack (SHAK) initiated with a Neutral at JPMorgan
Shake Shack (SHAK) initiated with an Equal Weight at Barclays
Spark Therapeutics (ONCE) initiated with an Overweight at
JPMorgan
TRACON Pharmaceuticals (TCON) initiated with a Buy at Stifel
TRACON Pharmaceuticals (TCON) initiated with an Outperform at
Oppenheimer
COMPANY NEWS
Hitachi (HTHIY) confirmed acquisition of Finmeccanica's railway
assets for EUR 773M
Philips (PHG) said it intends to separate Lighting business
through IPO
Bob Chapek named Chairman, Walt Disney Parks and Resorts
(DIS)
First Solar (FSLR), SunPower (SPWR) said they plan to partner
to form joint YieldCo vehicle
WEDC to provide up to $9M in tax credits to Exact Sciences
(EXAS)
Chegg (CHGG) announced an agreement in principle to establish
a multi-year renewable agreement with Ingram Content Group
EARNINGS
Companies that beat consensus earnings expectations last
night and today include:
Home Depot (HD), Carrizo Oil & Gas (CRZO), Pacira (PCRX),
Integra LifeSciences (IART), ExlService (EXLS), United Therapeutics
(UTHR), Gentherm (THRM), Chart Industries (GTLS), Toll Brothers
(TOL), Agrium (AGU), Haverty Furniture (HVT), Hansen Medical
(HNSN), Delek US (DK), Delek Logistics (DKL), Quad/Graphics (quad),
Sun Hydraulics (SNHY), On Deck Capital (ONDK), AXT, Inc. (AXTI),
ONEOK Partners (OKS), Invesco Mortgage (IVR), ONEOK (OKE), Kaman
(KAMN), Chegg (CHGG), Nautilus (NLS), Five9 (FIVN), Depomed (DEPO),
Continental Building (CBPX)
Companies that missed consensus earnings expectations include:
Sanderson Farms (SAFM), Westlake Chemical Partners (WLKP),
Westlake Chemical (WLK), Stock Building Supply (STCK), INC Research
(INCR), RCS Capital (RCAP), Alliant Energy (LNT), Rosetta Resources
(ROSE), American Tower (AMT), Orchid Island Capital (ORC),
Endurance (EIGI), Redwood Trust (RWT), PDL BioPharma (PDLI),
Ophthotech (OPHT), Dillard's (DDS), Stifel Financial (SF), MDC
Partners (MDCA), Express Scripts (ESRX)
Companies that matched consensus earnings expectations include:
Vitamin Shoppe (VSI), Donaldson (DCI), Seaspan (SSW),
DealerTrack (TRAK), AtriCure (ATRC), Texas Roadhouse (TXRH)
NEWSPAPERS/WEBSITES
Eli Lilly (LLY) CEO states company is not for sale, Financial
Times reports
Apple (AAPL) hiring chip, battery experts from Samsung
(SSNLF), Korea Times reports
JPMorgan (JPM) plans to charge fees for deposits from large
clients, WSJ reports
Banks probed for possible rigging of precious metals markets,
WSJ reports (HSBC, BNS, BCS, CS, DB, GS, JPM, SCGLY, UBS)
SYNDICATE
BofI Holding (BOFI) files $50M at-the-market equity offering
Colfax (CFX) files automatic mixed securities shelf
Health Care REIT (HCN) files to sell 17M shares of common
stock
Marin Software (MRIN) files to sell 1.56M shares of common
stock for holders
National Retail Properties (NNN) files automatic mixed
securities shelf
Opexa Therapeutics (OPXA) files to sell $63.3M in common
stock and units
Q2 Holdings (QTWO) files to sell 4.56M shares of common stock
Real Goods Solar (RGSE) files to sell $3.5M of units
Spirit Airlines (SAVE) files mixed securities shelf, no
amount given
Tallgrass Energy (TEP) files to sell 10M common units
representing limited partners
Tenax Therapeutics (TENX) files $100M mixed securities shelf
Unisys (UIS) files automatic mixed securities shelf
Xencor (XNCR) files to sell 5.5M shares of common stock
