Goldman Employees Reaped $2 Billion From 2008 Options Last Year
(
BBG)
On Bush turf, Obama blames immigration woes on Republicans (
Reuters)
Tougher Internet rules to hit cable, telecoms companies (
Reuters)
Russia's Gazprom says can exempt rebel-held areas from Ukraine
gas contract (
Reuters)
Allianz Says Pimco Seeing ‘Substantially’ Lower Outflows (
BBG)
Next Goal for Walmart Workers: More Hours (
NYT)
Merkel Faces Stepped-Up Dissent on Greek Bailout in Party (
BBG)
SEC Probes Companies’ Treatment of Whistleblowers (
WSJ)
2-Year Trek From Turf to Table Delays Cheaper U.S. Beef (
BBG)
Turkish jets violate Greek air space (
Kathimerini)
Standard Chartered CEO Peter Sands Resigns After Unrest at Bank
(
WSJ)
Oil rises above $62 after Saudi comments on demand (
Reuters)
China submarines outnumber U.S. fleet: U.S. admiral (
Reuters)
U.S., Israel Trade Barbs Over Iran Talks (
WSJ)
Euro-Area Consumers Help Recovery as Confidence Rises (
BBG)
Fly On The Wall Pre-Market Buzz
WSJ
* Morgan Stanley agreed to pay $2.6 billion to settle U.S.
claims stemming from the sale of mortgage bonds, handing the Wall
Street firm its biggest legal bill from the financial crisis. (
http://on.wsj.com/1By9vMr)
* The Nasdaq Composite Index's longest winning streak in more
than five years ended with a whimper at the hands of a surprising
culprit: a pullback in the world's most valuable company, Apple
Inc. (
http://on.wsj.com/1By7Ar9)
* Top U.S. officials sharpened efforts to undermine Israeli
Prime Minister Benjamin Netanyahu ahead of his visit to Washington
next week as tensions rose over his push to scuttle a possible
nuclear deal with Iran. (
http://on.wsj.com/1By6Zpn)
* Three Brooklyn, N.Y., men were arrested Wednesday and accused
of plotting to join or aid Islamic State in Syria, offering a
glimpse into the militant group's recruiting tactics-and how U.S.
counterterrorism officials are fighting back.(
http://on.wsj.com/1By86p9)
* Citigroup Inc said on Wednesday the Treasury Department and
California regulators are looking into its Banamex USA unit. (
http://on.wsj.com/1By9NTE)
* Hedge fund Standard General LP will lead the bidding at a
bankruptcy auction of 1,700 or more RadioShack Corp stores, as the
electronics retailer tries to save some of its struggling business.
(
http://on.wsj.com/1ByaMmG)
* The Federal Communications Commission's plan for regulating
how Internet providers treat traffic on their networks is expected
to unleash a number of court challenges and put pressure on
Congress to settle the legal morass through legislation. (
http://on.wsj.com/1Byb3pC)
FT
Morgan Stanley has agreed to settle with the U.S. Department of
Justice and pay $2.6 billion over allegations of mis-selling
mortgage backed securities before the global financial crisis.
Google has decided to unify its two different European units
into one, after years of local setbacks and legal challenges have
grown into company-wide issues. Matt Brittin, who was heading the
company's northern and west-European arm will now head the combined
unit and will be based in London.
U.S. drugmaker Pharmacyclics is considering a sale that could
fetch it about $19 billion, according to people familiar with the
matter. Johnson & Johnson is said to be one of the interested
buyers, one of the people said.
A little known company called Smartflash has won a legal battle
against iPhone-maker Apple Inc, that would make the Cupertino-based
company cough up $532.9 million in damages. Smartflash, founded in
2000, sued Apple in 2013 claiming the company had infringed on its
patents through iTunes and the App Store.
NYT
* This week, Google Inc, the search giant, is expected to
propose new headquarters - a series of canopylike buildings from
Heatherwick Studio, a London design firm known for works like the
fiery caldron at the 2012 Olympics, and Bjarke Ingels, a Danish
architect known for his innovative designs. (
http://nyti.ms/1ArgHYd)
* Morgan Stanley said on Wednesday that it had reached a $2.6
billion settlement with the Justice Department over the sale of
mortgage securities before the financial crisis. (
http://nyti.ms/1DVDZ9J)
* With some progress on the hourly wage front with Wal-Mart
Stores Inc, labor activists are highlighting another longstanding
demand: more hours - and more consistent hours - for hourly-wage
workers, something they say will make as much a difference to
workers' pocketbooks as an increase in wages. (
http://nyti.ms/1LKpvwe)
* Hewlett-Packard CO is in talks to buy Aruba Networks Inc, a
maker of WiFi access equipment for businesses, people briefed on
the matter said on Wednesday. (
http://nyti.ms/1LGCTQ5)
* Silicon Valley has lately come to the realization that it is
not the meritocracy it has long pretended to be - at least not for
women and most minorities. Now, after years of ignoring the issue,
and some serious prodding by the likes of the Reverend Jesse
Jackson, tech companies say they will do something about the hiring
gap between white and Asian men and nearly everyone else. (
http://nyti.ms/1wgWoaG)
* First in Detroit, then in Stockton, California, and now in New
Jersey, judges and other top officials are challenging the
widespread belief that public pensions are untouchable. (
http://nyti.ms/1LKq60K)
* Joseph Baratta, the head of private equity at the Blackstone
Group LP, the biggest alternative investment firm, said at a
conference in Berlin on Tuesday that the firm was speaking with
large investors about a new investment structure that would aim for
lower returns over a longer period of time. (
http://nyti.ms/180tkOC)
Canada
THE GLOBE AND MAIL
** Ford Motor Co will add 400 new jobs in Oakville, Ontario, to
assemble the redesigned Ford Edge crossover vehicle for global
markets in another sign that healthy vehicle sales are boosting the
auto sector in Canada. (
http://bit.ly/1BfYjCw)
** Ontario is expanding funding of one of the world's most
expensive drugs to cover sufferers of a life-threatening genetic
disease that damages vital organs, a move that counts as a victory
for patients but raises questions about how provincial governments
decide which high-priced medications to pay for. (
http://bit.ly/1LJOFuS)
** Bombardier Inc is banking on the C Series to carry aerospace
revenue over the next two decades as its CRJ regional jets fade
into history. But even as the larger - and more popular - version
of the plane is about to make its maiden flight, major hurdles
remain in the company's path. (
http://bit.ly/1AapLMh)
NATIONAL POST
** Start-up airline Canada Jetlines Ltd is in strategic talks
with Halifax-based CanJet Airlines, as well as multiple other
companies that could either merge with or take a stake in the
fledgling no-frills carrier, the Financial Post has learned. (
http://bit.ly/1DtkDrl)
** Bloomberg Television is set to launch in Canada this spring,
sources confirmed to the Financial Post, with an announcement of
the news expected as early as Thursday. (
http://bit.ly/1wgDJfk)
** The Irving family, one of Canada's richest and New
Brunswick's most powerful, appears to be at odds over the routing
of TransCanada Corp's proposed Energy East pipeline. J.D. Irving
Ltd, the family-owned forest products, logistics and shipbuilding
company headed by James Irving and sons James and Robert, has filed
an application with the National Energy Board saying it is "vitally
concerned" about the portion of the pipeline that would pass
through its Crown-leased lands in New Brunswick. (
http://bit.ly/1MUj0bD)
Hong Kong
SOUTH CHINA MORNING POST
-- Macau's gross gaming revenue this month is set to drop 50
percent from a year ago, analysts say, as initial data from the
first few days of the Lunar New Year, a peak season for mainland
gamblers, showed a much weaker performance than anticipated. (
http://bit.ly/17Zoq4y)
-- Tourists from the mainland made more than five million trips
abroad during the Lunar New Year holiday, a 10 percent rise on the
same period last year. China National Tourism Administration said
the increase was partly prompted by favourable exchange rates and
eased visa policies for Chinese visitors. (
http://bit.ly/1FuBgmg)
THE STANDARD
-- Details of a government proposal for a Future Fund of at
least HK$220 billion ($28.37 billion) will be unveiled on Monday.
In committing to the savings war chest, Financial Secretary John
Tsang said it can be used for infrastructure projects, even when
budgets are in deficit, as well as to reduce the impact from an
aging population. (
http://bit.ly/1Et8lkB)
-- Beijing has already reached a decision on the number of times
a person with a multiple-entry permit may visit Hong Kong,
according to local NPC deputy Michael Tien Puk-sun. In a radio
interview, Tien said Beijing and the Hong Kong government agreed on
52 visits last year but had suspended implementing the quota due to
dissatisfaction with the city's retail sector. (
http://bit.ly/1alTlcZ)
HONG KONG ECONOMIC JOURNAL
-- The number of small- to medium-size flats in Hong Kong sold
by mainlanders accounted for 4.6 percent of the total transaction
volume in 2014, up 1.1 percentage point from the previous year,
according to Centaline Property Agency research director Wong Leung
Sing, suggesting mainlanders are unloading their assets in the red
hot local property market.
MING PAO DAILY
-- China's retail sales and restaurants turnover during the
first six days of the Lunar New Year amounted to 678 billion yuan
($108.32 billion), up 11 percent from the same period a year ago,
in their slowest growth since 2010, according to data from the
Ministry of Commerce.
Britain
The Times
SHORT-SELLERS CASH IN AS AO WORLD TUMBLES
Short-sellers in AO World reaped 26 million pounds ($40.37
million) after the former stock market darling issued a shock
profits warning nearly a year to the day after it floated, sending
its value crashing by 358 million pounds. (thetim.es/1zJdf7I)
HSBC MAN'S 12-YEAR NON-DOM TAX PERKS
HSBC's chief executive enjoyed significant "non-dom" tax breaks
despite living in Britain for more than a decade and educating his
children here, MPs heard yesterday. (thetim.es/1zJdteV)
The Guardian
ALMOST 700,000 PEOPLE IN UK HAVE ZERO-HOURS CONTRACT AS MAIN
JOB
Nearly 700,000 people are on zero-hours contracts in their main
job - a rise of more than 100,000 on a year ago - according to new
official figures. (bit.ly/1vyV6wH)
HSBC SCANDAL CAUSED HORRIBLE DAMAGE TO BANK'S REPUTATION, SAYS
CHAIRMAN
HSBC is suffering "horrible reputational damage" as a result of
the exposure of the systematic aiding of tax avoidance in its Swiss
subsidiary, the bank's chairman has conceded before MPs.
(bit.ly/1MSPyTj)
The Telegraph
BRITAIN TO LEAD THE WORLD IN ISLAMIC FINANCE
London has set its sights on becoming the world centre for the
Islamic finance industry, according to the UK's foreign office
minister for the Middle East. (bit.ly/1DbZzTO)
ODEON CINEMAS TO BE SOLD LATER THIS YEAR FOR UP TO 1 BLN STG
Private equity group Terra Firma is planning to launch the sale
of its European cinema chain Odeon & UCI Group toward the end
of the year in a potential 1 billion pounds deal, its chairman has
revealed. (bit.ly/1DV7Yi2)
Sky News
RBS CHIEF MCEWAN TO FORFEIT 1 MLN STG 'ALLOWANCE'
Ross McEwan, the chief executive of Royal Bank of Scotland , is
to hand back a 1 million pounds chunk of his 2015 pay package,
cementing his status as the lowest-paid bank boss in the FTSE-100.
(bit.ly/1LEqlJ1)
FORMER TESCO EXEC SCOULER TO JOIN TALKTALK
John Scouler, one of the executives who left Tesco PLC in the
wake of its 263 million pounds profits overstatement, is to take on
a senior role at TalkTalk, the home communications group.
(bit.ly/1AM0lsj)
The Independent
SUPERGROUP FINANCE CHIEF REMOVED FROM POSITION AFTER BEING
DECLARED BANKRUPT
SuperGroup, known for its Superdry branded clothing, has been
forced to oust Finance Director Shaun Wills after he was declared
personally bankrupt. (ind.pn/1JM0jYu)
MORRISONS NAMES NEW CHIEF EXECUTIVE - FORMER TESCO ASIA
OPERATIONS BOSS DAVID POTTS
WM Morrison has named its new chief executive - and the man in
question actually started his career as a shelf stacker at rival
Tesco. David Potts will replace former boss Dalton Philips, who was
sacked last month. (ind.pn/1FWWpt3)
Fly on the Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Consumer Price Index for January at 8:30--consensus down 0.6%
Durable goods orders for January at 8:30--consensus up 1.6%
Jobless claims for week of February 21 at 8:30--consensus
290K
FHFA house price index for December at 9:00--consensus up
0.5%
EIA natural gas storage change for week of Feb. 20 at 10:30
Kansas City Fed manufacturing index for February at
11:00--consensus 3
ANALYST RESEARCH
Upgrades
AcelRx (ACRX) upgraded to Buy from Neutral at Mizuho
AllianceBernstein (AB) upgraded to Buy from Neutral at
BofA/Merrill
American Express (AXP) upgraded to Buy from Hold at Deutsche
Bank
Columbia Property (CXP) upgraded to Neutral from Sell at
Goldman
Gruma (GMK) upgraded to Overweight from Equal Weight at
Barclays
Isle of Capri (ISLE) upgraded to Outperform from Neutral at
Macquarie
T-Mobile (TMUS) upgraded to Buy from Neutral at Citigroup
Vulcan Materials (VMC) upgraded to Outperform from Sector
Perform at RBC Capital
Downgrades
Bill Barrett (BBG) downgraded to Neutral from Buy at SunTrust
Cablevision (CVC) downgraded to Sell from Hold at Brean
Capital
Chesapeake (CHK) downgraded to Hold from Buy at Johnson Rice
Chesapeake (CHK) downgraded to Neutral from Buy at UBS
Commerce Bancshares (CBSH) downgraded to Equal Weight from
Overweight at Barclays
DineEquity (DIN) downgraded to Neutral from Overweight at
JPMorgan
Dollar Tree (DLTR) downgraded to Hold from Buy at Stifel
Lamar Advertising (LAMR) downgraded to Neutral from Buy at
Citigroup
Lumber Liquidators (LL) downgraded to Hold from Buy at
Evercore ISI
Pacira (PCRX) downgraded to Underperform from Neutral at
BofA/Merrill
Pall Corp. (PLL) downgraded to Neutral from Buy at
BofA/Merrill
Paramount Group (PGRE) downgraded to Sell from Neutral at
Goldman
State Street (STT) downgraded to Neutral from Buy at
Citigroup
State Street (STT) downgraded to Neutral from Outperform at
Credit Suisse
Suez Environnement (SZEVY) downgraded to Neutral from Buy at
Citigroup
Verisk Analytics (VRSK) downgraded to Market Perform from
Outperform at Raymond James
Waddell & Reed (WDR) downgraded to Neutral from Buy at
BofA/Merrill
Initiations
1st Source (SRCE) initiated with a Neutral at DA Davidson
Credit Suisse (CS) initiated with an Underperform at Exane
BNP Paribas
Deutsche Bank (DB) initiated with an Underperform at Exane
BNP Paribas
Dice Holdings (DHX) initiated with a Neutral at B. Riley
Expedia (EXPE) initiated with an Underweight at Morgan
Stanley
Groupon (GRPN) initiated with an Equal Weight at Morgan
Stanley
GrubHub (GRUB) initiated with an Overweight at Morgan Stanley
HomeAway (AWAY) initiated with an Underweight at Morgan
Stanley
IAC (IACI) initiated with an Underweight at Morgan Stanley
LinkedIn (LNKD) initiated with an Overweight at Morgan
Stanley
Meredith (MDP) initiated with a Market Perform at Wells Fargo
Monster Worldwide (MWW) initiated with a Buy at B. Riley
Priceline (PCLN) initiated with an Equal Weight at Morgan
Stanley
UBS (UBS) initiated with an Underperform at Exane BNP Paribas
Yelp (YELP) initiated with an Overweight at Morgan
Stanley
COMPANY NEWS
Morgan Stanley (MS) agreed to $2.6B mortgage settlement with U.S
Sears (SHLD) said targeting REIT formation in May or June
RBS (RBS) confirmed Howard Davies to succeed Philip Hampton
as chairman
RBS (RBS) announced sale of North American loan portfolio to
Mizuho (MFG)
Standard Chartered (SCBFF) named William Winters as CEO,
effective in June
Viacom's (VIA) Nickelodeon announced launch of Noggin mobile
subscription service
Town Sports International Holdings (CLUB) said it hired
Deutsche Bank to explore strategic alternatives, including a
possible sale of the company
Avago Technologies (AVGO) and Emulex Corporation (ELX)
announced that they have entered into a definitive agreement under
which Avago will acquire Emulex in an all-cash transaction valued
at approximately $606M, or $609M net of cash and debt acquired
EARNINGS
Companies that beat consensus earnings expectations last night
and today include:
American Woodmark (AMWD), Mitel (MITL), Progressive Waste
(BIN), Magellan Health (MGLN), Carter's (CRI), Western Refining
Logistics (WNRL), AES Corp. (AES), Swift Energy (SFY), Catamaran
(CTRX), CIBC (CM), Transocean (RIG), Tronox (TROX), Aegion (AEGN),
Orion Marine (ORN), AB InBev (BUD), MGE Energy (MGE), TeleTech
(TTEC), Wright Medical (WMGI), EPAM Systems (EPAM), CoStar Group
(CSGP), Sturm, Ruger (RGR), Southwest Gas (SWX), Quality
Distribution (QLTY), Ferro (FOE), California Water Service (CWT),
Concho Resources (CXO), Chemtura (CHMT), WPX Energy (WPX),
Kadant (KAI), Kennedy Wilson (KW), Solar Senior Capital (SUNS),
FARO Technologies (FARO), Babcock & Wilcox (BWC), Marchex
(MCHX), eHealth (EHTH), China Cord Blood (co), LeMaitre (LMAT),
Anika Therapeutics (ANIK), Halcon Resources (HK), Monarch Casino
(MCRI), Medivation (MDVN), Globus Medical (GMED), Avago (AVGO),
Applied Optoelectronics (AAOI), Antero Resources (AR), Sprouts
Farmers Markets (SFM), Carriage Services (CSV), STAAR Surgical
(STAA), BioMarin (BMRN), Gulfport Energy (GPOR), L Brands (LB),
DexCom (DXCM), Cempra (CEMP), AmSurg (AMSG)
Companies that missed consensus earnings expectations include:
Olympic Steel (ZEUS), NTELOS (NTLS), Higher One (ONE), ACI
Worldwide (ACIW), Hoegh LNG (HMLP), Northern Tier (NTI), Ballard
Power (BLDP), Transocean Partners (RIGP), Volaris (VLRS), Assured
Guaranty (AGO), Seadrill (SDRL), UIL Holdings (UIL), Ensco (ESV),
North Atlantic Drilling (NADL), Assured Guaranty (AGO), Approach
Resources (AREX), PGT, Inc. (PGTI), Great Plains Energy (GXP), RLJ
Lodging Trust (RLJ), Westar Energy (WR), Legacy Reserves (LGCY),
LHC Group (LHCG), Martin Midstream Partners (MMLP), Churchill Downs
(CHDN), Oasis Petroleum (OAS), CafePress (PRSS), Endologix (ELGX),
Intralinks (IL), DryShips (DRYS), Erickson (EAC), Ocean Rig UDW
(ORIG), MercadoLibre (MELI), Penn Virginia (PVA), Ardelyx (ARDX),
Clovis (CLVS), bluebird bio (BLUE)
Companies that matched consensus earnings expectations include:
Vical (VICL), Popeyes (PLKI), Workday (WDAY), Salesforce.com
(CRM)
NEWSPAPERS/WEBSITES
Aruba Networks (ARUN) in talks to be acquired by Hewlett-Packard
(HPQ), Bloomberg reports
YouTube (GOOG) revenue growing but did not contribute to
earnings, WSJ reports
Lenovo (LNVGY) website taken down by cyberattack, WSJ reports
Google (GOOG) considering making investment in Jawbone,
Re/code reports
RBS (RBS) to greatly reduce investment bank unit, Financial
Times reports
Boeing (BA), FedEx (FDX) oppose punishing Gulf airlines for
alleged subsidies, Reuters says
Google (GOOG) unifying EU units amid regulatory pressures, FT
says
SYNDICATE
AMAG Pharmaceuticals (AMAG) 3.98M share Secondary priced at
$44.00
Boot Barn (BOOT) 5.4M share Secondary priced at $23.50
Celldex (CLDX) 7.25M share Secondary priced at $24.00
CollabRx (CLRX) 2.36M share Spot Secondary priced at $1.27
Enbridge Energy (EEP) files automatic mixed securities shelf
Lion Biotechnologies (LBIO) files to sell common stock, no
amount given
Macquarie Infrastructure (MIC) 5.31M share Secondary priced
at $80.00
Newfield Exploration (NFX) files to sell 18M shares of common
stock
Noble Energy (NBL) files to sell 21M shares of common stock
Plains All American (PAA) files to sell 21M shares of common
stock
Platform Specialty Products (PAH) files to sell 22.1M shares
of common for holders
Relypsa (RLYP) 3.4M share Secondary priced at $38.50
Rovi (ROVI) files to sell $300M in convertible senior notes
due 2020
Sovran Self Storage (SSS) files to sell 1M shares of common
stock
Strategic Hotels (BEE) enters $250M equity distribution
agreement
WashingtonFirst Bankshares (WFBI) files to sell 8,898 shares
of preferred for holders
Williams Partners (WPZ) files to sell $1B of common units
representing limited partner
