"The hate us for our..." Americans’ Cellphones Targeted in Secret U.S. Spy Program (WSJ) Ukraine and Russia take center stage as leaders gather for G20 (Reuters) Moscow and Kiev trade accusations; U.S. warns Russia against escalation (Reuters) Heartland Central Banker Calls Asset Bubbles Top Concern (BBG) U.S. Said to Give Banks December Deadline in FX Probe (BBG) Series of Failures Enabled White House Breach, Report Finds (WSJ) Yen plumbs seven-year trough on likely Japan sales tax delay (Reuters) JPMorgan Chase Bankers Said to Lead Moscow Departure (BBG) How Health Law’s Medicaid Enrollees Strain the System (WSJ) John Major calls UKIP the 'anti-everything' party (Reuters) Swiss Demand for Currency Automation Seen Reshaping Trading (BBG) Islamic State leader urges attacks in Saudi Arabia: speech (Reuters) ECB's Noyer - 'no problem' buying government bonds if needed (Reuters) Greece Exits Recession After Crisis That Put Euro at Risk (BBG)
Overnight Media Digest
WSJ
* The Justice Department is scooping up data from thousands of mobile phones through fake communications towers deployed on airplanes, a high-tech hunt for criminal suspects that is snagging a large number of innocent Americans. (http://on.wsj.com/1tNYyf7)
* President Obama could announce executive actions overhauling the immigration system as early as next week, though officials keep debating the best timing for a move that the GOP protests. (http://on.wsj.com/11mWbu5)
* A New Mexico county shows how Medicaid's growth under the Affordable Care Act has created a paradox: Many low-income Americans have gained coverage, but their numbers are straining some healthcare systems. (http://on.wsj.com/114MMXi)
* China's CGN Power Co Ltd plans to launch a US$3 billion initial public offering next week in Hong Kong, where it would be among the first companies to gauge investor appetite after the start of a stock-trading link between Shanghai and Hong Kong. (http://on.wsj.com/1ECclvM)
* Halliburton Co is in talks to buy Baker Hughes Inc , a deal that would help the big oil-field services companies contend with falling oil prices. (http://on.wsj.com/1zRO9HD)
* FCC Chairman Tom Wheeler is getting boxed in as the debate continues over net neutrality - the idea that all Internet traffic should be treated the same. (http://on.wsj.com/1v7HCHP)
* Lockheed Martin Corp, the world's largest defense company with some $45.4 billion in revenue, is pursuing new markets as far-flung as aquaculture equipment and compact fusion reactors amid declining spending on defense equipment. (http://on.wsj.com/14krxTb)
* An intruder was able to get over the White House fence and into the mansion in September because of a series of failures, including unclear radio transmissions and bushes that did not provide the barrier the Secret Service thought they would, a report has found. (http://on.wsj.com/1uiuKN6)
* Warren Buffett's Berkshire Hathaway Inc agreed to buy Duracell, taking advantage of its long-standing ties with the battery maker's owner in a deal that reduces taxes for both sides. (http://on.wsj.com/1yCESPQ)
* Moody's Corp and Kroll are sparring over an unsolicited credit rating Moody's issued on the debt of National Penn Bancshares. Kroll, which was hired by the bank to rate the debt, contends Moody's lowballed its rating to scare other banks into hiring it. (http://on.wsj.com/1xD8iil)
* Activist investors are increasingly seeking to advance their agendas at companies by pushing for a role in selecting new management. (http://on.wsj.com/1u858AZ)
* State securities regulators are drawing up plans to allow information on problem stockbroker firms to be shared more effectively among them. (http://on.wsj.com/1wZpYow)
* Amazon.com Inc reached a new multi-year publishing contract with Hachette Book Group Inc covering print and digital books, bringing to an end a bitter dispute that showed how the online retailer's growing clout is roiling the book industry. (http://on.wsj.com/1vaCSRg)
* Ocwen Financial Corp will not buy the rights to service $39 billion in mortgages for Wells Fargo & Co, the companies said, officially terminating a deal that New York's financial regulator had put on hold. (http://on.wsj.com/1pXxgbH)
* Honda Motor Co Ltd said it identified the first case outside the United States of a death linked to faulty air bags made by Takata Corp, a development that broadens the scope of a safety alarm that is already roiling North America. (http://on.wsj.com/1Bl0GFk)
* Twitter Inc's debt was rated as junk by Standard & Poor's Ratings Services, a sobering grade that comes a day after executives of the social media service tried to reassure skeptics on Wall Street of its long-term growth plan. (http://on.wsj.com/1xmIDMp)
* Since Nov. 4, collectors have flocked to the world's chief auction houses in New York to buy more than $2 billion of art, a historic high in which 23 works sold for more than $20 million apiece. (http://on.wsj.com/1xmIDMp)
* Google Inc has teamed up with mapping company SkyTruth and marine-advocacy group Oceana to create a new tool aimed at reining in illegal fishing world-wide. (http://on.wsj.com/1zSGxEP)
* BlackBerry Ltd and Samsung Electronics Co Ltd agreed to sell each other's mobile-security technology, a partnership that could help them win more enterprise customers. (http://on.wsj.com/1znQLKj)
* Oracle Corp and SAP SE have agreed to settle a long-running legal battle over software copyrights, the companies said. SAP will pay Oracle $359 million to settle the case. (http://on.wsj.com/1tOVxeJ)
* The social news site Reddit said that Chief Executive Yishan Wong had abruptly resigned, apparently over a dispute involving office space and the company's chief operating officer, Ellen Pao, will act as interim CEO. (http://on.wsj.com/1xmKJvA)
FT
According to a European Commission investigative report, due to be published on Friday, the Netherlands illegally understated coffee group Starbucks' taxable income. The U.S.-based company is already in the middle of a controversy over tax deals in Ireland.
In view of falling oil prices, Premier Oil has decided to scale back its plans to explore the disputed waters of the Falkland Islands. The FTSE 250 group said it will reduce its estimated $2 billion capital expenditure requirement as it will develop fewer wells in the northern part of the disputed islands.
Sir Richard Branson sold a 15 percent stake in Virgin Money , a company he owns partly, as he earned at least 70 million pounds (109.84 million US dollar) from the bank's flotation on the London Stock Market. If the over-allotment option is triggered and new shares are released, Branson as well as Wilbur Ross, a billionaire co-owner of the bank, are poised to reap as much as 85 million pounds.
Paintings by Andy Warhol, Roy Lichtenstein and Ed Ruscha helped Christie's create a world auction record of $852.9 mln at a contemporary and postwar evening in New York.
NYT
* The steepening drop in gasoline prices in recent weeks, spurred by soaring domestic energy production and Saudi discounts for crude oil at a time of faltering global demand is set to provide the United States economy with a multibillion-dollar boost through the holiday season and beyond. (http://nyti.ms/1wt0fk6)
* President Obama will ignore angry protests from Republicans and announce as soon as next week a broad overhaul of the nation's immigration enforcement system that will protect up to five million unauthorized immigrants from the threat of deportation and provide many of them with work permits, officials said. (http://nyti.ms/114NjZg)
* Daniel Loeb, the activist hedge fund manager, unveiled a new website that takes aim at Dow Chemical Co after months of trying to persuade it to take further steps to increase shareholder value. Loeb's firm, Third Point, lists on the website several instances of what it called "broken promises" by Dow and its chief executive, Andrew Liveris. (http://nyti.ms/1v8dRqm)
* India and the United States reached an agreement over food stockpiles, removing a major obstacle to a global trade deal that has been stalled for months. The pact, which precedes a meeting this weekend of the Group of 20 major economies, allows India to continue its extensive food subsidy program. (http://nyti.ms/1tOGAtd)
* Hachette won an important victory in its battle with Amazon.Com Inc to set its own prices for e-books, which it sees as critical to its survival. Amazon's supporters publicly questioned the need for Hachette, the fourth largest publisher, to exist in an era when authors can publish themselves digitally. (http://nyti.ms/1EIr4XQ)
* Berkshire Hathaway Inc, the conglomerate run by Warren Buffett, will acquire Duracell from Procter & Gamble using a transaction aimed at lowering the tax bill. By agreeing to swap his firm's holdings in Procter & Gamble, worth about $4.7 billion in exchange for Duracell, Buffett will gain one of the best-known battery companies in the world. (http://nyti.ms/1GUSThN)
* A panel of Goldman Sachs Group Inc employees spent a night at the Columbia University faculty club trying to convince a packed room of potential recruits that Wall Street, not Silicon Valley, was the place to be for computer scientists. Their argument to the technologically inclined students was that Wall Street was where they could find far more challenging jobs working on some of the world's most difficult technical problems. (http://nyti.ms/1qGPitq)
* Virgin America Inc raised about $305.9 million in its initial public offering, at the offering's price of $23 a share, as the low-cost airline prepares for a new life as a publicly traded company. The stock sale values the airline at about $972.9 million. (http://nyti.ms/1xUdmNA)
* Halliburton Co is in talks to buy Baker Hughes Inc , the deal would unite two of the biggest oil field services providers in what would be one of the largest energy deals in years, Baker Hughes confirmed. (http://nyti.ms/1sLgOpk)
* Comcast Corp's acquisition of Time Warner Cable Inc has already drawn many heated detractors to urge the Federal Communications Commission to reject the deal. It has been hit yet again by United States President Barack Obama's endorsement of net neutrality. (http://nyti.ms/1GULCyA)
* The Dubai port operator DP World agreed to acquire Economic Zones World, a developer and operator of industrial parks, giving it access to the Jebel Ali Free Zone for $2.6 billion in cash, including debt. (http://nyti.ms/1sLqX5j)
* Dutch financial services company ING Groep NV said that it planned to further reduce its stake in Voya Financial, its former United States business, through a sale of shares to the public. ING said that it planned to sell about 34.5 million shares, reducing its stake in Voya to about 19 percent from the current 32.5 percent. (http://nyti.ms/1ww4F9T)
Canada
THE GLOBE AND MAIL
** Senior Canadian government officials say Canada will under no circumstances be purchasing F-35s on an expedited basis and that no decision has been made on which new warplane to buy. In the face of a U.S. military report that Ottawa has made a secret decision to buy U.S. F-35 stealth fighters, officials say the lack of firm details on cost and capabilities has not instilled confidence. (http://bit.ly/11nennk)
** Prime Minister Stephen Harper welcomed a deal between China and the United States to cut greenhouse gas emissions but gave no indication he would commit to bigger reductions on behalf of Canada. (http://bit.ly/1xnoyph)
** The federal government plans to punish mining and energy companies that run afoul of its new corporate social responsibility policy by withdrawing support they receive from agencies such as Export Development Canada and embassies abroad. (http://bit.ly/1zTutU3)
NATIONAL POST
** The Bank of Canada is raising the alarm over the risks of electronic money, which is growing in popularity but not yet highly regulated and provides "no user protection." (http://bit.ly/1wZuX8t)
** Toronto-Dominion Bank will be compensating thousands of clients to the tune of more than C$13.5 million ($11.9 million) for a series of instances in which they were charged excess fees on investments. On Thursday, TD settled the matter that affected at least 10,000 accounts of clients and former clients through a rare "no contest" settlement with regulators. (http://bit.ly/1GVtSDh)
** Gunman Michael Zehaf-Bibeau, who was shot dead on Parliament Hill Oct. 22 after killing a soldier, had toured the Centre Block as an ordinary member of the public in the days before his destructive rampage, the Ottawa Citizen has learned. The Royal Canadian Mounted Police's working theory of his actions is that Zehaf-Bibeau planned to behead a Canadian politician once he made it onto the Hill after killing Corporal Nathan Cirillo at the National War Memorial. (http://bit.ly/1vbCaTN)
China
CHINA SECURITIES JOURNAL
- Chinese brokerages need to submit to the regulator by year-end their plans to replenish capital over the next three-years, as part of the regulator's broader efforts to improve the fund management mechanism and widen capital sources.
SHANGHAI DAILY
- Shanghai's housing authority unveiled on Thursday a revised criteria for "normal" homes, to help buyers qualify for preferental policies and boost sales of residential property. The city government will raise the price threshold to allow more homebuyers, particularly end-users, to be eligible for preferential tax policies.
CHINA DAILY
- China will soon put its first domestically developed electric-powered aircraft into mass production, and designers expect a huge market at home and abroad. The paper said the two-seater, light-duty plane will run on electric motors, with electricity coming from fuel cells, solar cells, ultracapacitors, power beaming or batteries.
SECURITIES TIMES
- Shanghai Metersbonwe Fashion & Accessories has announced that it will invest 52.5 million yuan ($8.57 million) for a 15 percent stake in a private bank that will be jointly set up with other investors. It did not give details on the bank or who the other investors are.
PEOPLE'S DAILY
- China's economy is undergoing structural adjustment and the recent slowdown in its growth momentum is pragmatic and necessary to ensure efficiency.
Britain
The Times
* British American Tobacco fined for oversupplying cigarettes to Belgium
British American Tobacco Plc has been fined by HM Revenue & Customs for oversupplying cigarettes into Belgium which can be smuggled back into the UK. The fine from the taxman follows pressure from politicians who have complained HMRC has been too soft on tobacco companies. (http://thetim.es/1wYGIMx)
* Eurostar upgrade on fast track to reach Amsterdam and Germany
Eurostar has unveiled its biggest upgrade in 20 years of running high-speed trains under the Channel between London and Paris with the presentation at St Pancras International of its e320 German-built trains. (http://thetim.es/1znp30o)
The Guardian
* Lloyds to cut 1,250 jobs in insurance
Lloyds Banking Group is shedding 1,250 jobs as it cuts costs and changes the way it sells insurance products in its branches. The cutbacks - described as devastating news by union officials - are the latest to take place at the 24 percent taxpayer-owned bank. (http://bit.ly/1qFkVUi)
* Standard Chartered boss hails 'constructive' investor talks
The boss of Standard Chartered Plc ended three days of crucial talks with investors on Thursday, insisting the discussions had been "constructive" as he battles to keep his job at the emerging markets bank. (http://bit.ly/1xxlHri)
The Telegraph
* BT plans to scrap 2.4 bln pounds Wholesale division
BT is planning to scrap its Wholesale unit and fold the multi-billion-pound business into Openreach, the monopoly division that controls Britain's national telecoms infrastructure, in a move that will concern rivals who already fear its power. (http://bit.ly/1xm5o38)
* Asda hits out at price gimmicks by 'desperate' rivals
Asda, the British arm of U.S. supermarket group Wal-Mart Stores Inc has launched a ferocious attack on its supermarket rivals, accusing them of being "desperate" and misleading customers with price gimmicks. (http://bit.ly/1EAUZzi)
Sky News
* Discounter B&M in talks over Homebase stores
The fast-growing discount chain B&M is in talks over a multimillion pound bid to take on dozens of Homebase DIY stores in a move that would underline the changing landscape of UK retailing. (http://bit.ly/1sIJr7z)
* Buffett spends $3 bln on Duracell purchase
Berkshire Hathaway Inc investment vehicle is to pay $3 billion to Procter & Gamble Co for Duracell battery business. The consumer goods firm, which took control of Duracell when it bought Gillette in 2005, had previously announced its intention to slim down. (http://bit.ly/1yCZA24)
The Independent
* Hasbro 'in talks' to buy Hollywood studio DreamWorks Animation
Toymaker Hasbro Inc is in talks to buy Hollywood studio DreamWorks Animation as chief executive Brian Goldner moves to build up an entertainment arm. (http://ind.pn/1xTxzTT).
* 'Shell was told to replace pipeline six years before Nigeria oil spills'
Royal Dutch Shell Plc failed to act on its own internal advice to replace a 30-year-old pipeline years before it wreaked havoc on the Niger Delta by rupturing and spilling thousands of barrels of oil into the area, according to court documents. (http://ind.pn/1oSZ5km)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Retail sales for October at 8:30--consensus up 0.2%
Consumer sentiment index for November at 9:55--consensus 87.5
Business inventories for September at 10:00--consensus up 0.3%
ANALYST RESEARCH
Upgrades
CEVA (CEVA) upgraded to Outperform from Perform at Oppenheimer
Empire State Realty (ESRT) upgraded to Buy from Hold at Stifel
Fly Leasing (FLY) upgraded to Buy from Neutral at BofA/Merrill
Global Partners (GLP) upgraded to Outperform from Sector Perform at RBC Capital
Harley-Davidson (HOG) upgraded to Buy from Neutral at Goldman
IAMGOLD (IAG) upgraded to Overweight from Neutral at HSBC
NetEase.com (NTES) upgraded to Buy from Neutral at UBS
NetEase.com (NTES) upgraded to Overweight from Underweight at HSBC
Raytheon (RTN) upgraded to Outperform from Market Perform at Cowen
Rofin-Sinar (RSTI) upgraded to Buy from Neutral at Longbow
Salix (SLXP) upgraded to Buy from Neutral at UBS
Teekay Tankers (TNK) upgraded to Neutral from Underweight at JPMorgan
Downgrades
Abercrombie & Fitch (ANF) downgraded to Neutral from Outperform at Credit Suisse
AmeriGas (APU) downgraded to Underperform from Neutral at Credit Suisse
Hersha Hospitality (HT) downgraded to Hold from Buy at MLV & Co.
Immune Design (IMDZ) downgraded to Hold from Buy at Jefferies
Meritor (MTOR) downgraded to Neutral from Buy at Goldman
Nike (NKE) downgraded to Neutral from Buy at Sterne Agee
Ross Stores (ROST) downgraded to Sell from Hold at Canaccord
Suburban Propane (SPH) downgraded to Underperform from Neutral at Credit Suisse
TJX (TJX) downgraded to Sell from Hold at Canaccord
Total System (TSS) downgraded to Market Perform from Outperform at JMP Securities
Universal Display (OLED) downgraded to Perform from Outperform at Oppenheimer
Urban Outfitters (URBN) downgraded to Neutral from Buy at Mizuho
Wal-Mart (WMT) downgraded to Underperform from Market Perform at BMO Capital
lululemon (LULU) downgraded to Underperform from Neutral at Sterne Agee
Initiations
AbbVie (ABBV) initiated with a Buy at Deutsche Bank
Advance Auto Parts (AAP) initiated with a Buy at Sterne Agee
AutoZone (AZO) initiated with an Underperform at Sterne Agee
Carter's (CRI) initiated with a Buy at Sterne Agee
Children's Place (PLCE) initiated with a Neutral at Sterne Agee
Container Store (TCS) initiated with a Fair Value at CRT Capital
DHT Holdings (DHT) initiated with a Buy at UBS
Diana Shipping (DSX) initiated with a Neutral at UBS
Genuine Parts (GPC) initiated with a Neutral at Sterne Agee
National Oilwell (NOV) initiated with a Neutral at UBS
Navios Acquisition (NNA) initiated with a Buy at UBS
O'Reilly Automotive (ORLY) initiated with a Neutral at Sterne Agee
Scorpio Bulkers (SALT) initiated with a Neutral at UBS
Scorpio Tankers (STNG) initiated with a Buy at UBS
Star Bulk Carriers (SBLK) initiated with a Neutral at UBS
Teekay Tankers (TNK) initiated with a Buy at UBS
TriplePoint Venture (TPVG) initiated with a Buy at UBS
Tsakos Energy (TNP) initiated with a Buy at UBS
USD Partners (USDP) initiated with an Outperform at Credit Suisse
COMPANY NEWS
Baker Hughes (BHI) confirmed preliminary discussions with Halliburton (HAL)
Nestle (NSRGY) to explore strategic options for development of Davigel
Google (GOOG) to retire Google Wallet for digital goods API on March 2, 2015
Geron (GERN) announced a global strategic collaboration with Janssen Biotech (JNJ)
AmerisourceBergen (ABC) was awarded an estimated $4.06B firm-fixed-price contract for prime vendor pharmaceutical and pharmaceutical-related products and support for worldwide distribution
Puma Biotechnology (PBYI) announced positive top line results from PB272 Phase II Trial
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Bitauto (BITA), Hollysys Automation (HOLI), Bona Film (BONA), Agile Therapeutics (AGRX), StarTek (SRT), SINA (SINA), Penford (PENX), Matthews (MATW), Ocera Therapeutics (OCRX), TubeMogul (tube), Cerulean (CERU), Flexion (FLXN), SMART Technologies (SMT), Kingstone Companies (KINS), Pfenex (PFNX), Vital Therapies (VTL), Evoke Pharma (EVOK), Cinedigm (CIDM), ZBB Energy (ZBB), Papa Murphy's (FRSH), Onconova (ONTX), Nordstrom (JWN), Reed's (REED), RE/MAX Holdings (RMAX)
Companies that missed consensus earnings expectations include:
B2Gold (BTG), Pan American Silver (PAAS), Intrexon (XON), Catalyst Pharmaceutical (CPRX), Trinseo S.A. (TSE), StoneCastle (BANX), Argos Therapeutics (ARGS), CafePress (PRSS), Catalent (CTLT), Montage Technology (MONT), Veracyte (VCYT), ESCO Technologies (ESE), Mandalay Digital (MNDL), WidePoint (WYY), Century Communities (CCS), Charles & Colvard (CTHR), Cesca Therapeutics (KOOL)
Companies that matched consensus earnings expectations include:
Medley Management (MDLY), U.S. Geothermal (htm), Weibo (WB), Celator Pharmaceuticals (CPXX), Applied Materials (AMAT)
NEWSPAPERS/WEBSITES
EU says Starbucks (SBUX) tax deal in Netherlands may be illegal state aid, WSJ reports
FTC asking Apple (AAPL) about health data protection, Reuters reports
Royal Bank of Scotland (RBS) to exit U.S. mortgage business, Reuters reports
SAP (SAP) to pay Oracle (ORCL) $359M to settle legal battle, WSJ reports
Alibaba (BABA) plans to raise up to $8B in bond offering, Bloomberg reports
BP (BP) loses bid for new trial regarding negligence in oil spill, Bloomberg says
SYNDICATE
Cheniere Energy Partners (CQH) files to sell 10.1M common shares
Covenant Transportation (CVTI) files to sell 2.2M shares of Class A common stock
EnLink Midstream (ENLK) files to sell 10.5M units representing limited partners
FibroGen (FGEN) 8.1M share IPO priced at $18.00
Landmarket Infrastructure (LMRK) 2.65M share IPO priced at $19.00
NeuroDerm (NDRM) 4.5M share IPO priced at $10.00
Premier (PINC) 3.7M share Secondary priced at $32.35
TRI Pointe Homes (TPH) files automatic common stock shelf for holders
Tiptree Financial (TIPT) files to sell 21.2M shares for holders
Virgin America (VA) 13.337M share IPO priced at $23.00
Zoe's Kitchen (ZOES) 3.8M share Secondary priced at $32.00
