China Lowers Growth Target to About 7% (
WSJ)
Obesity Is Hurting the U.S. Economy in Surprising Ways (
BBG)
Embattled Hillary Clinton urges State Department to release
emails (
Reuters)
Washington Strips New York Fed’s Power (
WSJ)
U.S. Supreme Court split over Obamacare challenge (
Reuters)
Citigroup Loses $800 Million as It Exits Turkey’s Akbank (
BBG)
Justice Who Once Tried to Kill Obamacare Now Potential Savior (
BBG)
Buyers of Espírito Santo Debt Face Financial Uncertainty (
WSJ)
Shadow Banks Could Take $11 Billion Annual Profit, Goldman Says
(
BBG)
Like Israel, U.S. Arab Allies Fear Obama’s Iran Nuclear Deal (
WSJ)
Apple to Delay Production of Larger iPads (
BBG)
AbbVie boosts cancer drug pipeline with $21 billion
Pharmacyclics deal (
Reuters)
Knife-wielding attacker slashes face of U.S. ambassador in
South Korea (
Reuters)
Snowden says U.S. not offering fair trial if he returns (
Reuters)
As heroin trade grows, a sting in Kenya (
Reuters)
Overnight Media Digest
WSJ
* China lowered its economic growth forecast to about 7 percent
for 2015 at the opening of the country's biggest political event of
the year, ushering in what leaders have dubbed a "new normal" of
slower growth in the world's second largest economy.(
http://on.wsj.com/1B92uOE)
* AbbVie Inc said late Wednesday it will buy cancer biotech
Pharmacyclics Inc in a $21 billion deal that returns the North
Chicago drug company to deal-making after backing away from a big
tax-lowering takeover last year.(
http://on.wsj.com/1B93qTd)
* Investors snapped up a half-billion euros of French utility
bonds that will pay them no interest, a groundbreaking deal that
shows how corporations are rushing to take advantage of Europe's
efforts to keep interest rates low to try to revive the continent's
economy.(
http://on.wsj.com/1B951sl)
* Simon Property Group Inc has made takeover approaches to
Macerich Co, seeking to combine two of the largest shopping-mall
owners in the U.S.(
http://on.wsj.com/1B95pqN)
* Etsy Inc unveiled plans to further test investors' appetite
for e-commerce companies, filing for an initial public offering a
decade after it was founded in a Brooklyn, N.Y., apartment as a way
to sell handmade goods online.(
http://on.wsj.com/1B96tLj)
* McDonald's Corp plans to curtail antibiotics use in its U.S.
chicken, a move that could help kick-start a broader food-industry
response to growing public-health alarm around drug-resistant
bacteria.(
http://on.wsj.com/1B96rmH)
FT
U.S. drugmaker Johnson & Johnson is nearing a deal to buy it
smaller rival and maker of cancer drugs Pharmacyclics . Sources
close to the deal say that J&J may value the company at par or
at a premium of the $17.5 bln market capitalisation that
Pharmacyclics commands.
The chief executive of Exxon Mobil has said that low oil prices
are here to stay and that the world should "settle in" for a period
where oil prices remain weak.
Online craft goods store Etsy has filed to get listed on Nasdaq
under the ticker symbol ETSY, to raise at least $100 million. The
IPO, which could give Etsy a valuation of $2 billion, would be the
biggest for a New York-based tech company in several years.
Photos-based social network Instagram has unveiled a new
advertising format where advertisements will carry links to
marketers' product and websites. The Facebook -owned app has termed
the new advertising format as "carousel adverts".
NYT
* The public's wait for virtual reality is nearing an end. In
recent days, several of the most prominent companies making
headsets offered rough timetables for consumer versions of their
products, ending the guessing game about when virtual reality would
get its first real test. (
http://nyti.ms/1M99r7p)
* Transcripts the Federal Reserve released on Wednesday of its
2009 policy meetings show that Ben Bernanke and his colleagues had
a relatively clear understanding of the depth of the nation's
economic problems. But they were hobbled by doubts about the Fed's
ability to do more and by concerns about the potential political
and economic consequences. (
http://nyti.ms/1M99WOW)
* McDonald's Corp said on Wednesday that it would begin using
chickens that are not raised with antibiotics used to treat humans,
a move likely to put pressure on competitors of the fast-food
chain, which now sells more chicken than beef.(
http://nyti.ms/1KpicwE)
* Etsy, a company founded in Brooklyn a decade ago, may begin
trading on the Nasdaq stock market within two months.(
http://nyti.ms/1M9a8O1)
* AbbVie Inc announced late Wednesday that it has agreed to buy
Pharmacyclics Inc, a maker of a cancer drug that some analysts
predict will eventually become one of the best-selling treatments
for that disease, for about $21 billion. (
http://nyti.ms/1M9aZ1b)
* When the news came that the state of New Jersey had reached a
deal with Exxon Mobil Corp to settle its $8.9 billion claim for
about $250 million, the driving force behind the settlement was not
the attorney general's office - it was Governor Chris Christie's
chief counsel, Christopher Porrino, two people familiar with the
negotiations said. (
http://nyti.ms/1zZgGXV)
* The producer behind "Blurred Lines," Pharrell Williams,
acknowledged a similarity between the song and Gaye's 1977 song
"Got to Give It Up" but denied that there had been any intention to
copy it. (
http://nyti.ms/1M9c1dJ)
* Barack Obama's ambitious trade agenda - once seen as the best
chance for bipartisan accomplishment in an otherwise rived Congress
- appears to rest on the narrow, somewhat wobbly shoulders of
Senator Ron Wyden of Oregon, a position acknowledged by both
parties and the White House with some trepidation. (
http://nyti.ms/1Kpj44u)
* Chinese Premier Li Keqiang, in his annual speech to the
nation, warned Thursday that China would have to overcome economic
inefficiencies, excess capacity and impediments to private
enterprise if it were to maintain healthy rates of growth. (
http://nyti.ms/1Kpjms9)
Canada
THE GLOBE AND MAIL
** Toronto's housing market broke through an important financial
threshold in February as the average price of detached homes topped
C$1 million ($805,607) for the first time. (bit.ly/1M8tlgQ)
** A majority of Canadians says Canada's efforts to reduce
greenhouse gases have been dismal and they want the federal
government to take the lead in creating tax policies for curbing
emissions, a new poll suggests. (bit.ly/1CAAMh1)
** The University of British Columbia is defending two of its
researchers who have published vaccine-related studies discredited
by the World Health Organization and described by several medical
experts as weak and misleading. (bit.ly/1M9YIJN)
NATIONAL POST
** Toronto buyers are turning to sub-prime lenders to reach the
20 percent downpayment needed for a bank loan, facing interest
rates of close to 13 percent. (bit.ly/1Fd4pTn)
** Almost five years after a derelict cargo ship with 492 Sri
Lankan migrants arrived off the British Columbia coast, prompting a
change in Canada's immigration laws, the government has failed to
find a buyer for the vessel. (bit.ly/1wITDVF)
** Veterans with case managers, the 4,000 or so most badly
injured ex-soldiers, will have their forms filled in for them when
it's time to renew access to benefits like the Veterans
Independence Program, which provides home cleaning, grass-cutting
and other services. (bit.ly/1M8v85L)
China
CHINA SECURITIES JOURNAL
- Wang Xian, vice director of the Market Supervision Department
of China Securities Regulatory Commission (CSRC) said occupational
pensions should be allowed to invest in mutual funds in a proposal
submitted during the annual full session of the National People's
Congress (NPC).
- Hou Wailin, head of the CSRC's Guangdong branch said
restrictions on brokerage firms issuing short-term bonds should be
loosened in a proposal submitted during the annual full session of
the NPC.
- Whether China will cut its interest rates or the reserve
requiremet ratio (RRR) depends on the country's economic situation,
said Yi Gang, a vice governor of China's central bank on
Wednesday.
SHANGHAI DAILY
- Perpetrators of fatal domestic violence should be charged with
murder, while those who kill their violent long term abusers should
be dealt with leniently, according to guidelines released on
Wednesday by China's leading judicial authorities.
Britain
The Times
OSBORNE PLANNING TAX CUT FOR WORKERS
Senior Labour figures fear George Osborne is preparing a raid on
pension savings to fund a pre-election tax cut for workers. (
http://thetim.es/1BJ6hUM)
BANK OF ENGLAND FACES SFO INQUIRY
The Serious Fraud Office has opened a criminal investigation
into the Bank of England over the potential rigging of money market
auctions. (
http://thetim.es/1M8cTz2)
The Guardian
SNP COULD WIN 56 OF 59 SCOTTISH SEATS IN GENERAL ELECTION, POLL
SUGGESTS
A poll conducted by Lord Ashcroft indicates the SNP, led by
Nicola Sturgeon, could win 56 of Scotland's 59 parliamentary seats,
according to the veteran polling analyst Mike Smithson. (
http://bit.ly/1DNRGEm)
HSBC BOSSES SHOULD TAKE RESPONSIBILITY FOR SWISS SCANDAL,
REGULATOR INSISTS
The Bank of England's top regulator has told MPs that bosses at
HSBC should take personal responsibility for the scandal at its
Swiss private bank, saying he had made it clear to the bank for
years that it was too unwieldy to manage. (
http://bit.ly/1B84SoY)
The Telegraph
DAVID CAMERON ISSUES 'FINAL OFFER' OVER TV DEBATES
David Cameron has issued an ultimatum to the broadcasters over
TV debates, saying he will only take part in one such debate
featuring at least seven party leaders more than a month before the
election. (
http://bit.ly/1Glqend)
ENERGY NETWORKS FACE INVESTIGATION OVER 'TOO HIGH' COSTS TO
CONSUMERS
Energy network companies face investigation by the Competition
and Markets Authority after British Gas complained that the prices
they charge are too high. (
http://bit.ly/1Cyd7Os)
Sky News
HEATHROW ROW OVER EXCHANGE OF CURRENCY FIRMS
Heathrow Airport has become embroiled in a commercial row over
the withdrawal of one of the UK's biggest providers of foreign
exchange services. (
http://bit.ly/1NhZ56H)
SCOTTISHPOWER SALES BAN FOR COMPLAINT FAILURE
ScottishPower has received a 12-day sales ban for failing to
meet targets on handling customer complaints. (
http://bit.ly/1wIH1xG)
The Independent
EUROSTAR SALE: GOVERNMENT OFFLOAD STAKE TO RAISE 585 MLN POUNDS
FOR TREASURY
The government has struck a deal to sell its Eurostar stake to a
consortium of investors, including the stewards of Canadian pension
savings. The Treasury said the sale of its 40 percent stake in the
Channel Tunnel train operator will generate 585.1 million stg in
revenues. (
http://ind.pn/1wWwcT5)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Major domestic economic reports scheduled for today include:
Jobless claims for week of February 28 at 8:30--consensus
295K
Q4 unit labor costs at 8:30--consensus up 3.1%
Q4 nonfarm productivity at 8:30--consensus down 2.3%
Factory orders for January at 10:00--consensus up 0.2%
EIA natural gas storage change for week of Feb. 27 at
10:30
ANALYST RESEARCH
Upgrades
American Eagle (AEO) upgraded to Buy from Neutral at B. Riley
Exelon (EXC) upgraded to Overweight from Neutral at JPMorgan
Green Dot (GDOT) upgraded to Outperform from Neutral at
Credit Suisse
Installed Building Products (IBP) upgraded to Outperform at
RBC Capital
Methanex (MEOH) upgraded to Strong Buy from Outperform at
Raymond James
National Grid (NGG) upgraded to Overweight from Neutral at
HSBC
Northstar Realty (NRF) upgraded to Outperform from Market
Perform at Keefe Bruyette
Plantronics (PLT) upgraded to Outperform from Market Perform
at Raymond James
Sturm, Ruger (RGR) upgraded to Buy from Fair Value at CRT
Capital
Downgrades
Abercrombie & Fitch (ANF) downgraded to Neutral from Buy at
Nomura
Century Aluminum (CENX) downgraded to Equal Weight from
Overweight at Morgan Stanley
Exxon Mobil (XOM) downgraded to Hold from Buy at Evercore ISI
Flowserve (FLS) downgraded to Market Perform from Outperform
at Cowen
Hologic (HOLX) downgraded to Hold from Buy at Needham
InterXion (INXN) downgraded downgraded to Hold from Buy at
Canaccord
McDonald's (MCD) downgraded to Neutral from Overweight at
Piper Jaffray
Melco Crown (MPEL) downgraded to Neutral from Overweight at
HSBC
Restaurant Brands (QSR) downgraded to Neutral from Buy at
Goldman
STMicroelectronics (STM) downgraded to Underweight from
Neutral at HSBC
Scorpio Bulkers (SALT) downgraded to Neutral from Outperform
at Credit Suisse
Tenet (THC) downgraded to Market Perform from Outperform at
BMO Capital
Initiations
21st Century Fox (FOXA) initiated with a Buy at Deutsche Bank
Celladon (CLDN) initiated with a Buy at Roth Capital
Disney (DIS) initiated with a Hold at Deutsche Bank
Dominion Midstream (DM) initiated with a Buy at BTIG
Exterran (EXH) initiated with a Buy at BTIG
KAR Auction (KAR) initiated with a Buy at SunTrust
Liberty Media (LMCA) initiated with a Hold at Deutsche Bank
Sirius XM (SIRI) initiated with a Hold at Deutsche Bank
Time Warner (TWX) initiated with a Buy at Deutsche Bank
Viacom (VIAB) initiated with a Buy at Deutsche Bank
COMPANY NEWS
AbbVie (ABBV) to acquire Pharmacyclics (PCYC) for $261.25 per
share, or $21B
Costco (COST) reported February SSS up 1%
CBS News, a division of CBS (CBS), released details and
documents of the test results relating to the 60 Minutes
investigation on Lumber Liquidators (LL) on its website
Vanda Pharmaceuticals (VNDA) announced results of the Phase
II proof of concept clinical study investigating the safety and
efficacy of tradipitant as a monotherapy in the treatment of
chronic pruritus in patients with atopic dermatitis. Despite a
highly significant and clinically meaningful improvement from
baseline by tradipitant as measured on a 100mm unit Visual Analog
Scale for itch, a very high placebo effect on the change from
baseline led to no statistical difference from placebo
FCC recommended against NeuStar (NSR) for phone contract
EARNINGS
Companies that beat consensus earnings expectations last night
and today include:
Ares Commercial (ACRE), Dynavax (DVAX), Amerseco (AMRC), Costco
(COST), PetroQuest (PQ), China Biologic (CBPO), Garrison Capital
(GARS), SP Plus Corp. (SP), Darling (DAR), Abraxas Petroleum
(AXAS), Semtech (SMTC), Heritage Insurance (HRTG), Alon USA
Partners (ALDW), Jones Energy (JONE), GSI Group (GSIG), Vivint
Solar (VSLR), Jones Energy (JONE), Sequenom (SQNM), Pacific Ethanol
(PEIX), Culp (CFI), Corcept Therapeutics (CORT), H&R Block
(HRB), Box Ships (TEU), PowerSecure (POWR), Roundy's (RNDY)
Companies that missed consensus earnings expectations
include:
Canadian Solar (CSIQ), Gray Television (GTN), Achillion (ACHN),
City Office REIT (CIO), City Office REIT (CIO), Joy Global (JOY),
Canadian Natural (CNQ), Embraer (ERJ), Triumph Bancorp (TBK),
W&T Offshore (WTI), Lumos Networks (LMOS), Alimera Sciences
(ALIM), Callon Petroleum (CPE), Cross Country Healthcare (CCRN),
Points International (PCOM), Trinseo (TSE), BIOLASE (BIOL), Alder
Biopharmaceuticals (ALDR), Craft Brew (BREW)
Companies that matched consensus earnings expectations
include:
Descartes Systems (DSGX), Polypore (PPO), Hudson Technologies
(HDSN), CPI Aerostructures (CVU)
NEWSPAPERS/WEBSITES
Apple (AAPL) delays larger iPad on panel challenges, Bloomberg
reports
HBO (TWX) in talks to have Apple TV (AAPL) on board for HBO
Now launch, IBT reports
Apple (AAPL) to use Oxide display for 12.9-inch iPad,
DigiTimes reports
J&J (JNJ) says 'looking forward' to continuing
collaboration with AbbVie (ABBV), Reuters reports (PCYC)
Shareholder suit against Intercept (ICPT) allowed to proceed,
Reuters reports
Simon Property (SPG) may look to acquire peer Macerich (MAC),
WSJ reports
Pentagon delays bomber contract until summer, WSJ reports
(NOC, BA, LMT)
SYNDICATE
Alliant Energy (LNT) announces $150M 'at-the-market' equity
offering
Apollo Commercial (ARI) files to sell 10M shares of common
stock
Callidus Software (CALD) 4.6M share Secondary priced at
$13.00
CommScope (COMM) files to sell common stock for holders, no
amount given
Consolidated Tomoka (CTO) files to sell $75M of convertible
notes due 2020
Eagle Bancorp (EGBN) 2.449M share Secondary priced at $35.50
Encana (ECA) announces C$1.25B bought deal offering
Etsy (ETSY) files for IPO, seeks to be listed on Nasdaq
Harley-Davidson (HOG) files automatic mixed securities shelf
Horizon Pharma (HZNP) files to sell $300M in exchangeable
senior notes
IBERIABANK (IBKC) files automatic mixed securities shelf
InterDigital (IDCC) files to sell $275M in senior convertible
notes
Newcastle Investment (NCT) files automatic mixed securities
shelf
Revance (RVNC) files $300M mixed securities shelf
Sprouts Farmers Markets (SFM) files to sell 15.85M shares for
holders
Summit Therapeutics (smmt) 3.45M share IPO priced at
$9.90
