Greece requests euro zone loan extension, offers big
concessions (
Reuters)
Germany Rejects Loan Request Saying Greece Must Meet Conditions
(
BBG)
Did the Fed Just Enter the Currency Wars (
BBG)
French consumer prices fall for first time since 2009 (
Reuters)
Oil falls sharply after U.S. crude inventories rise (
Reuters)
High-Speed Firm Virtu Revives IPO Plans (
WSJ)
Fed Tiptoes Into Rate-Hike Debate (
Hilsenrath)
Rajoy’s Nemesis Is Back: Anti-Graft Editor Targets Vote (
BBG)
Are the World’s Biggest Banks Moving Money for Terrorists? (
BBG)
U.S. authorities probe alleged forged letter from Mirach
in Sahara deal (
Reuters)
McDonald’s Brings Back Tenders, Giving Boost to Chicken
Industry (
BBG)
Caterpillar Faces Pileup of Probes and Inquiries (
WSJ)
Apple poaching auto engineers to build battery division (
Reuters)
Sears Turnaround Seen Failing by Traders in Credit-Swaps Market
(
BBG)
Overnight Media Digest
WSJ
* Federal Reserve officials held detailed discussions in January
on the timing and pace of interest-rate increases, though they
stopped short of agreeing to specific plans, according to minutes
of the meeting. (
http://on.wsj.com/1E6ycyK)
* A growing list of federal investigations and inquiries
threatens to become a serious embarrassment for Caterpillar Inc ,
which has long projected a squeaky-clean image. (
http://on.wsj.com/1MzdM4O)
* Federal authorities are probing whether a hacker is behind the
online posting of a cache of Morgan Stanley's client data - and not
the financial adviser who was fired in connection with the breach.
(
http://on.wsj.com/1DtHHJ2)
* Virtu Financial Inc, one of the world's biggest high-frequency
trading firms, is reviving its plan to go public, according to
people familiar with the matter. (
http://on.wsj.com/1Boqb8u)
* Auto-parts maker Delphi Automotive Plc agreed to sell its car
heating and cooling business to Germany's Mahle for more than $700
million in a move to refocus on higher margin electronic safety and
self-driving technologies. (
http://on.wsj.com/1ESXKNq)
* NBC's "Nightly News" held on to first place in the ratings
last week, but its numbers took a tumble with Lester Holt sitting
in the anchor chair in place of Brian Williams. (
http://on.wsj.com/17X3L1N)
* Samsung Electronics Co Ltd said it had acquired a U.S. startup
whose technology is likely to underpin the South Korean technology
giant's new mobile-payment service. The deal to buy LoopPay Inc,
represents the clearest signal that Samsung intends to compete
aggressively with Apple Inc in trying to change consumer behavior
at the checkout counter. (
http://on.wsj.com/17X4ikr)
FT
British businesses fear the charge towards regional devolution
will damage growth and undermine the internal market, Confederation
of British Industry, the country's largest employers' group will
say on Thursday.
Secret policies for eavesdropping on confidential conversations
between lawyers and their clients by British spy agencies do not
adhere to European human rights laws, the government has
admitted.
The adoption of expensive new drugs by the National Health
Service is doing patients more harm than good, according to a
research report by the University of York urging sharp reduction in
the price pharmaceuticals companies are paid for their
products.
Harriet Yeo, a former head of Labour's ruling body, the National
Executive Committee said she has left the party to support the
anti-EU UK Independence Party at the next election as she was
"disillusioned" with its failure to offer a referendum on Britain's
membership of the EU.
NYT
* The new leftist-led Greek government plans to submit a new
proposal on Thursday. The ability of Greece and its banks to remain
solvent could depend just as much on Mario Draghi and a series of
decisions by the European Central Bank that might determine the
financial fate of Greece. (
http://nyti.ms/1EqVjBT)
* The Safra Group, led by Joseph Safra, recently bought Chiquita
Brands International, the fruit company, and the London office
tower known as the Gherkin. (
http://nyti.ms/1AIIhCh)
* The Federal Reserve does not sound like an institution that is
ready to raise its benchmark interest rate in June. Fed officials
at their most recent policy-making meeting in January worried that
economic growth remained fragile, and that raising rates
prematurely could undermine recent gains, according to an official
account released Wednesday. (
http://nyti.ms/1JqLlab)
* Uber has expanded its Series E round of venture financing by
$1 billion, according to documents filed Wednesday with the
Delaware secretary of state, bringing the total capacity for the
round up to $2.8 billion. (
http://nyti.ms/1CLoxsL)
* The United States Marshals Service announced that it would
auction 50,000 Bitcoins, worth nearly $12 million, seized in
connection with the online marketplace Silk Road. The Bitcoin
auction, to be held on March 5, comes more than two months after
the service's second Bitcoin auction in December, when it also sold
50,000 Bitcoins. (
http://nyti.ms/1E8gg6T)
* Unusually close competition among films that have split
pre-Oscar honors most prominently, "Birdman" and "Boyhood" has
brought Hollywood table talk about subtle maneuvers and
well-managed serendipity that have made Fox Searchlight the company
to beat. (
http://nyti.ms/1FwmRtp)
Canada
THE GLOBE AND MAIL
** Sales of luxury vehicles hit a record in Canada last year and
Porsche Cars Canada Inc is riding the wave. Porsche posted the best
year-over-year percentage increase of any auto maker in Canada,
topping off a four-year run that has doubled sales. (
http://bit.ly/1CLZCrD)
** Ontario Superior Court ruled on Wednesday that Target
Canada's franchised pharmacists should get C$100,000 ($80,103) from
Target Canada to cover their legal and financial advice in the
insolvency proceedings of the chain, which is closing all 133 of
its stores by mid-May. (
http://bit.ly/1DEdiGs)
** Islamic jihadis have "declared war on Canada and its allies,"
posing a grave threat and justifying sweeping new surveillance of
terrorist suspects, Minister of Public Safety Steven Blaney said on
Wednesday as he headed to a summit hosted by U.S. President Barack
Obama on countering violent extremism. (
http://bit.ly/1LdUWwO)
** Barrick Gold Corp slashed jobs and hung the for sale sign on
some of its Asia-Pacific assets, as the Canadian company vowed to
reduce its debt by at least $3-billion this year. (
http://bit.ly/1G6PdrE)
** The Canadian government has failed to get Washington to pay
the roughly $250 million needed to build a U.S. Customs plaza on
the Michigan side of a new Detroit-Windsor bridge. Ottawa will be
responsible for financing the entire cost of the $2.1-billion
bridge, including access roads on both sides of the Detroit River
as well as U.S. border installations, under a deal announced on
Wednesday. (
http://bit.ly/1Jr5ooX)
NATIONAL POST
** Leonard Asper, whose family built, and later lost, the
Canwest Global Communications Corp empire, had scrambled a
last-ditch effort to buy Sun News Network. That was less than 72
hours before its owner, Quebecor Media, officially pulled the plug
on it. (
http://bit.ly/17Y8tfR)
** Ezra Levant, left unemployed by the demise of Sun News, is
hoping to emulate the success of U.S. commentator Glenn Beck by
launching his own subscription-based conservative website. (
http://bit.ly/1Jr4F7j)
** Parti Quebecois leadership candidate Pierre Karl Peladeau is
not excluding the possibility of Quebec becoming an independent
country based on an election result that would put the party in
power. (
http://bit.ly/1vJ8IQW)
** Finance Minister Joe Oliver came under fire on Wednesday over
allegations his office broke federal rules by sole-sourcing
speechwriting services in 2013 for C$9,200 to the law firm of Guy
Giorno - Prime Minister Stephen Harper's former chief of staff. (
http://bit.ly/1EVyl5O)
Britain
The Times
OLD MUTUAL PUTS CITY BOARDS ON NOTICE OVER TESCO-STYLE 'REWARDS
FOR FAILURE'
In a defiant move inspired by perceived "rewards for failure" at
Tesco Plc, Old Mutual Global Investors threatened to vote against
any company that has failed to shorten service contracts for main
board directors to under a year by next March. (
http://thetim.es/1LeSg3K)
The Guardian
UK ADMITS UNLAWFULLY MONITORING LEGALLY PRIVILEGED
COMMUNICATIONS
The regime under which UK intelligence agencies, including MI5
and MI6, have been monitoring conversations between lawyers and
their clients for the past five years is unlawful, the British
government has admitted. (
http://bit.ly/1ASzex6)
UK EMPLOYMENT RATE HITS HIGHEST LEVEL SINCE RECORDS BEGAN
David Cameron has hailed news that Britain's employment rate is
at the joint highest level since records began in 1971 as evidence
that the economy is strengthening. (
http://bit.ly/1AkGBf0)
The Telegraph
MONSOON BOSS JOHN BROWETT QUITS
John Browett, who left Apple after just six months in charge of
its retail operations, has suddenly quit his position as chief
executive of fashion chain Monsoon Accessorize. (
http://bit.ly/17VL0M9)
PUTIN WILL TARGET THE BALTIC NEXT, DEFENCE SECRETARY WARNS
There is a "real and present danger" that Vladimir Putin will
launch a campaign of undercover attacks to destabilise the Baltic
states on Nato's eastern flank, the Defence Secretary has warned. (
http://bit.ly/1LeNPpC)
Sky News
LLOYDS AND RBS FACE REPEAT OF CASH BONUS CAP
Lloyds Banking Group and Royal Bank of Scotland have been in
discussions with UK Financial Investments , the agency which
manages taxpayers' stakes in the two lenders, about their pay
structures for 2014. (
http://bit.ly/1ET0SZK)
ECB EXTENDS FUNDING FOR GREEK BANKS - REPORTS
The European Central Bank has decided to increase its emergency
funding to Greek commercial banks, it has been reported. (
http://bit.ly/1A7poab)
The Independent
GREEK BAILOUT: GREECE TO ASK EUROZONE FOR EXTENSION OF LOAN DEAL
BUT STAND FIRM AGAINST AUSTERITY MEASURES
The Greek government has confirmed it is to ask the Eurozone for
a six-month extension of its European loan agreement today. (
http://ind.pn/1AHAzZa)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Jobless claims for week of Feb. 14 at 8:30--consensus 290K
Philadelphia Fed survey for February at 10:00--consensus 8.2
Leading indicators for January at 10:00--consensus up 0.3%
EIA natural gas storage change for week of Feb. 13 at 10:30
DOE petroleum inventory reports for week of Feb. 13 at
11:00
ANALYST RESEARCH
Upgrades
Angie's List (ANGI) upgraded to Overweight from Equal-Weight at
First Analysis
Coach (COH) upgraded to Buy from Hold at Topeka
Fiat Chrysler (FCAU) upgraded to Outperform from Neutral at
Exane BNP Paribas
Garmin (GRMN) upgraded to Buy from Neutral at BofA/Merrill
Hologic (HOLX) upgraded to Buy from Hold at Canaccord
Monster Worldwide (MWW) upgraded to Buy from Hold at Evercore
ISI
Pharmacyclics (PCYC) upgraded to Buy from Neutral at Nomura
RPC, Inc. (RES) upgraded to Equal Weight from Underweight at
Morgan Stanley
Sanofi (SNY) upgraded to Buy from Neutral at BofA/Merrill
Sasol (SSL) upgraded to Neutral from Underweight at HSBC
Tractor Supply (TSCO) upgraded to Outperform from Perform at
Oppenheimer
Valero (VLO) upgraded to Buy from Hold at Deutsche Bank
Weingarten Realty (WRI) upgraded to Neutral from Sell at UBS
Werner (WERN) upgraded to Outperform from Sector Perform at
RBC Capital
Downgrades
Castlight Health (CSLT) downgraded to Hold from Buy at Canaccord
Delek US (DK) downgraded to Hold from Buy at Deutsche Bank
EOG Resources (EOG) downgraded to Neutral from Buy at
Citigroup
Heartland Express (HTLD) downgraded to Sector Perform from
Outperform at RBC Capital
Huntsman (HUN) downgraded to Neutral from Buy at Citigroup
Intelsat (I) downgraded to Neutral from Buy at UBS
Intelsat (I) downgraded to Underweight from Neutral at
JPMorgan
Mazor Robotics (MZOR) downgraded to Hold from Buy at Needham
Pharmacyclics (PCYC) downgraded to Neutral from Buy at Roth
Capital
Pharmacyclics (PCYC) downgraded to Neutral from Overweight at
JPMorgan
Potbelly (PBPB) downgraded to Underperform from Neutral at
BofA/Merrill
Sasol (SSL) downgraded to Neutral from Buy at BofA/Merrill
Terex (TEX) downgraded to Market Perform from Outperform at
BMO Capital
Initiations
Alaska Air (ALK) reinstated with an Underperform at BofA/Merrill
Allegiant Travel (ALGT) reinstated with a Buy at BofA/Merrill
American Airlines (AAL) reinstated with a Buy at BofA/Merrill
Delta Air Lines (DAL) reinstated with a Buy at BofA/Merrill
EPIRUS (EPRS) initiated with an Outperform at Wedbush
Endo (ENDP) resumed with a Buy at Citigroup
Hawaiian Holdings (HA) reinstated with an Underperform at
BofA/Merrill
JetBlue (JBLU) initiated with a Buy at BofA/Merrill
Proto Labs (PRLB) initiated with a Sector Perform at Pacific
Crest
Southwest (LUV) initiated with a Buy at BofA/Merrill
Spirit Airlines (SAVE) reinstated with a Buy at BofA/Merrill
United Continental (UAL) initiated with a Neutral at
BofA/Merrill
Virgin America (VA) reinstated with an Underperform at
BofA/Merrill
COMPANY NEWS
Ball's (BLL) proposed acquisition of Rexam (REXMY) valued at
$8.4B
Verizon (VZ) named John Stratton as head of wireless and
wireline operations
T-Mobile (TMUS) said COO Jim Alling resigns, effective March
13, and named Mike Sievert as COO
Kimberly Clark (KMB) CFO Buthman to retire at year end, Maria
Henry to succeed
Lockheed Martin (LMT) named Dana Jackson as Chief Technology
Officer
Cubic Corporation (CUB) announced the next steps in
streamlining its corporate and business segment operations as part
of a company-wide activity to improve profitability and
competitiveness through its One Cubic initiatives. These
initiatives are anticipated to yield $15-16M in annualized pre-tax
savings in FY16
EARNINGS
Companies that beat consensus earnings expectations last night
and today include:
Hormel Foods (HRL), LPL Financial (LPLA), State Auto
Financial (STFC), T-Mobile (TMUS), Teekay Tankers (TNK), Parker
Drilling (PKD), Key Energy (KEG), Axiall (AXLL), Barrick Gold
(ABX), PRA Health (PRAH), Sunoco (SUN), Coeur Mining (CDE), IAMGOLD
(IAG), Oil States (OIS), Employers Holdings (EIG), Apollo
Residential Mortgage (AMTG), Theravance (THRX), AVG Technologies
(AVG), Six Flags (SIX), Marriott (MAR), Convergys (CVG), Maiden
Holdings (MHLD), Altra Holdings (AIMC), SunEdison Semiconductor
(SEMI), iPass (IPAS), On Assignment (ASGN), SunEdison (SUNE),
United Insurance (UIHC), Synopsys (SNPS), Universal Forest (UFPI),
Rex Energy (REXX), Trinity Industries (TRN), Grand Canyon (LOPE),
ONE Gas (OGS), Nova Measuring (NVMI), Fidelity National (FNF),
Williams (WMB), BJ's Restaurants (BJRI), XPO Logistics (XPO), LDR
Holding (LDRH), Intrepid Potash (IPI), Castlight Health (CSLT),
Pharmacyclics (PCYC), ARRIS (ARRS)
Companies that missed consensus earnings expectations include:
Pan American Silver (PAAS), Remy International (REMY), Energy
Transfer Equity (ETE), SolarCity (SCTY), America's Car-Mart (CRMT),
Curtiss-Wright (CW), Questar (STR), EOG Resources (EOG), Regency
Energy Partners (RGP), EarthLink (ELNK), Marathon Oil (MRO), Sunoco
Logistics (SXL), ExamWorks (EXAM), Tenaris (TS), KEYW (KEYW),
American Railcar (ARII), Regulus (RGLS), YuMe (YUME), EVERTEC
(EVTC), B&G Foods (BGS), Interface (TILE), Western Gas Partners
(WES), Datalink (DTLK)
Companies that matched consensus earnings expectations include:
Quanta Services (PWR), Alamos Gold (AGI), Steiner Leisure
(STNR), Healthstream (HSTM), ManTech (MANT), Denny's (DENN)
Hormel Foods (HRL) raises FY15 adjusted EPS to $2.50-$2.60 from
$2.45-$2.55
BAE Systems (BAESY) reports 2014 operating profit GBP1.3B vs.
GBP806M last year, sees 2015 underlying EPS marginally higher vs.
2014
Curtiss-Wright (CW) sees FY15 EPS $3.80-$3.90, consensus
$3.50
Marriott (MAR) sees Q1 EPS 68c-72c, consensus 66c, sees FY15
EPS $3.00-$3.12, consensus $3.03
NEWSPAPERS/WEBSITES
Authorities investigating possible hack in Morgan Stanley (MS)
leak, WSJ reports
A123 Systems (AONE) sues Apple (AAPL) for poaching employees,
WSJ reports
YouTube (GOOG) to unveil paid music service soon, Reuters
reports
Air France-KLM (AFLYY) to reduce investments, make 800 job
cuts, Financial Times says
Lockheed Martin (LMT) on track to cut cost of F35 jets by
30%, Financial Times reports
SYNDICATE
Netlist (NLST) files to sell common stock, no amount given
Stamps.com (STMP) files to sell 769k shares of common stock
for holders
