Icahn, Paulson Suffer Large Losses as Energy-Related Bets Sour
(
WSJ)
Oil Investors Keep Betting Wrong on When Market Will Bottom (
BBG)
U.S. to sell final $1.25 billion shares of Ally Financial from
bailout (
Reuters)
Ally Financial Gets Subpoena Related to Subprime Automotive
Finance (
WSJ)
Russia's parliament rushes through bill boosting banking
capital (
Reuters)
How a Memo Cost Big Banks $37 Billion (
WSJ)
ECB considers making weaker euro zone states bear more
quantitative easing risk (
Reuters)
How the U.S. Could Retaliate Against North Korea (
BBG)
U.S. backed talks with ISIS over American hostage (
Reuters)
Oil Crash Exposes New Risks for U.S. Shale Drillers (
BBG)
Exxon Mobil Shows Why U.S. Oil Output Rises as Prices Plunge (
BBG)
Eight children killed in Australia in reported mass stabbing (
Reuters)
No Selfies, Tweets or Leaks: Why Cuba Talks Had to Be Kept Top
Secret (
BBG)
Sony Hackers Seen Having Snooped for Months, Planted Bomb (
BBG)
Oil-Led Slump Spurring Fastest Investor Exit From Commodities
Since 2008 (
BBG)
Despite billions in aid, U.S. unable to get Pakistan to
confront militants (
Reuters)
Overnight Media Digest
WSJ
* Ripples from Sony Pictures' decision not to release its
controversial comedy "The Interview" immediately reached other
entertainment projects in the works as producers and studios sought
to distance themselves from productions involving North Korea. (
http://on.wsj.com/1xtc4g3)
* If the Obama administration's move to normalize ties with Cuba
does lead to an end to the U.S. embargo, it could reignite battles
over the U.S. rights to sell two of the island's most prized
exports: cigars and rum. (
http://on.wsj.com/13FSjFJ)
* Car makers are not pulling out of Russia yet, but they are
growing increasingly nervous and moving to control the damage from
plunging consumer demand and exposure to Russia's swooning
currency. (
http://on.wsj.com/1AlBM5G)
* Deezer, the French music streaming service, has appointed a
new boss as it prepares for a full-scale launch in the already
crowded U.S. market. (
http://on.wsj.com/1C6d2R5)
* Madison Square Garden Co, which said in October that it would
explore separating its entertainment businesses from its media and
sports operations, added on Thursday that it would consider
breaking up further. (
http://on.wsj.com/1wRAPQh)
* Computer-services company Atos will buy Xerox's information
technology outsourcing business for $1.05 billion in cash, a deal
that would bolster the French company's position in the U.S. (
http://on.wsj.com/1AlCyQa)
* Luxembourg agreed Thursday to share with the European
Commission information on tax deals secured by multinational
companies with operations in the small nation. (
http://on.wsj.com/1DQYVRq)
* RadioShack Corp said its head of marketing is leaving the
company, the second top level executive departure in the middle of
its all-important holiday sales drive, as the electronics chain
tries to stave off bankruptcy. (
http://on.wsj.com/1AlCAHY)
* Liberty Media Corp's CommerceHub is set to announce it has
agreed to acquire e-commerce advisory firm Mercent as it seeks to
broaden its clients' reach online, particularly through Amazon.com
Inc and Google Inc . (
http://on.wsj.com/1x3VjbL)
* American Apparel Inc has been approached by Irving Place
Capital about a possible takeover, according to people familiar
with the matter. (
http://on.wsj.com/1sMC70C)
* Unilever Plc on Thursday said it was withdrawing a
high-profile lawsuit it filed against a California food startup
over the marketing of mayonnaise. (
http://on.wsj.com/1GwXqpz)
* Hulu has won the rights to a large trove of FX Networks shows
like "The Strain" and "Tyrant" in a deal designed to minimize the
damage many media executives fear streaming services are wreaking
on traditional cable TV. (
http://on.wsj.com/1w4B6vv)
FT
Germany's BASF and Russia's Gazprom neft' OAO have decided to
call off an energy asset swap due to "difficult political
environment", the chemical producing company said on Thursday.
Hampton Creek, maker of Just Mayo spread, has raised $90 mln
from Horizons Ventures, Li Ka-shing's investment fund, and Khosla
Ventures, a Silicon Valley venture-capital firm, both of which are
already investors in the company.
France's competition authority has issued a 951 million euros
($1.17 billion) fine to companies including L'Oreal and Unilever
after finding them guilty of secretly fixing prices of household
and personal care products.
Ireland's former flag carrier Aer Lingus said on Thursday that
it rejected a takeover bid from British Airways owner IAG as it
"fundamentally undervalued" the business.
NYT
* Within hours of President Obama's historic move to restore
full diplomatic relations with Cuba, companies in the United States
are already developing strategies to introduce their products and
services to a market they have not been in for the better part of
50 years - if ever. (
http://nyti.ms/1AlCu2O)
* Switzerland is introducing a negative interest rate on
deposits held by lenders at its central bank, moving to hold down
the value of the Swiss franc amid turmoil in global currency
markets and expectations that deflation is at hand. (
http://nyti.ms/1zCKcEG)
* The European Union announced new sanctions over Ukraine on
Thursday, outlawing European investment in Crimea, the Black Sea
peninsula annexed by Russia in March, as leaders of the 28-nation
bloc gathered in Brussels to review their strategy toward Russia. (
http://nyti.ms/1uYtB97)
* A White House official said the administration was considering
a "proportional response" against those who hacked into Sony
Pictures computers, a retaliation that could thrust the United
States into a direct confrontation with North Korea. (
http://nyti.ms/1sF66lr)
* A European Union investigation into possible price fixing by
Europe's largest truck manufacturers appeared to be gathering
momentum after Daimler of Germany said it had set aside 600 million
euros to cover possible costs resulting from the inquiry. (
http://nyti.ms/1wRxT69)
* Under pressure from regulators, Ford Motor Co is expanding
nationwide the recall of vehicles with airbags manufactured by the
Japanese supplier Takata Corp, the automaker said. (
http://nyti.ms/1DQYcjh)
* The private equity firm Westbrook Partners has thrown in the
towel and says it will sell the New Era Estate, a London housing
block whose tenants protested its plans to raise rents. (
http://nyti.ms/13jhFs4)
* Ally Financial Inc said it had received a Justice Department
subpoena as part of an investigation "related to subprime
automotive finance and related securitization activities." (
http://nyti.ms/1sNaYuG)
* Xerox Corp has agreed to sell its information technology
outsourcing business to Atos, the French technology company, for
just over $1 billion. (
http://nyti.ms/1wpZaOm)
* Goldman Sachs Group Inc named John E. Waldron as one of its
co-heads of investment banking, succeeding John S. Weinberg, a vice
chairman and a member of one of the firm's most prominent families.
(
http://nyti.ms/1AN8meT)
Canada
THE GLOBE AND MAIL
** In its continuing bid to boost competition in the wireless
industry, Ottawa confirmed it will reserve the majority of cellular
airwaves in a coming public auction for small carriers. At the same
time, the federal government, which has pushed pro-consumer policy,
assured Canadians in rural areas they will not lose what Internet
access they already have and revealed plans to hold another auction
of valuable low-band airwaves. (
http://bit.ly/1x4qJi4)
** Grupo Bimbo SAB de CV is buying the Vachon family of snack
cakes from Saputo Inc for C$120 million ($103.55 million) as the
Mexican baked-goods company widens its footprint in Canada. (
http://bit.ly/1GvrK3O)
** U.S. ambassador Bruce Heyman is urging Canada to continue
sharing security information with the United States in the wake of
a damning report on the CIA's brutal interrogation methods. In a
recent interview with The Globe and Mail, Heyman said co-operation
between the two countries is critical to keeping citizens safe. (
http://bit.ly/1xtt5Xx)
NATIONAL POST
** BlackBerry Ltd unveiled a new phone that harks back to the
company's glory days of being the world's leading smartphone maker,
capping a year dedicated to stabilizing finances and winning back
investor confidence. Earnings on Friday will shed light on how
successful the turnaround has been. (
http://bit.ly/1wrzGQL)
** The Ontario government wants Ottawa to pony up C$1 billion
for the massive "Ring of Fire" mineral belt, but the federal
natural resources minister is warning that key structural
challenges still need to be overcome. The Ring of Fire, named after
the famous Johnny Cash song, is a vast but very remote mineral belt
located in Ontario's James Bay Lowlands. (
http://bit.ly/1wKeYvr)
** Court documents allege the Ontario Liberal party paid the
spouse of a top aide to Dalton McGuinty C$10,000 to wipe computer
hard drives in the premier's office. The allegation is contained in
police documents used to obtain a search warrant that was executed
in November at an Ontario government cyber security office in
downtown Toronto. (
http://bit.ly/1wIC45o)
China
CHINA SECURITIES JOURNAL
- Corn starch futures would start trading on Dec. 19 in Dalian
Commodity Exchange (DCE), which would be the 44th commodity futures
in China, the Dalian Futures Exchange said.
CHINA DAILY
- China is to set up an offshore observation network by 2020 to
cope with disasters, guarantee development of the coastal economy
and protect the country's maritime interest, according to a
guideline released by the State Oceanic Administration.
- Domestic solar panel producers are looking to emerging markets
to offset mounting difficulties they face in the United States,
where they fear they may be squeezed out completely by a new ruling
on dumping duties.
SHANGHAI DAILY
- A former housing official has been sentenced to 25 years in
prison for bribery, corruption and embezzlement by a court in
Zhengzhou, capital of central China's Henan Province. The Zhengzhou
court said Zhai illegally owned 20 properties, of which 11 were
registered under his daughter's names and nine under his son's.
Britain
The Times
JOHN LAING BUILDS HEAD OF STEAM TO BE FIRST BIG 2015 LONDON
FLOAT
John Laing is on the verge of being brought back to the stock
market seven years after it was taken private. The infrastructure
investor and construction project management firm is likely to be
one of the first big London floats of 2015. John Laing's owner,
Henderson, the international investment house and private equity
firm, has hired HSBC Holdings Plc and Barclays Plc to marshal an
initial public offering. (
http://thetim.es/1sEGLrV)
The Guardian
FRANCE FINES 13 CONSUMER GOODS FIRMS 951 MLN EUROS FOR
PRICE-FIXING
Some of the world's biggest consumer products companies,
including Unilever , Reckitt Benckiser, Procter & Gamble and
Gillette, have been fined a combined 951 million euros ($1.17
billion) by the French competition watchdog for price fixing in
supermarkets. (
http://bit.ly/1w3W4ug)
ROYAL MAIL SELL-OFF UNDERVALUED FIRM BY 180 MLN STG, REPORT
FINDS
The government could have made 180 million pounds ($281.97
million) more from the 2 billion pounds sale of Royal Mail Plc last
year but this would have involved "considerable risk," a report
commissioned by business secretary Vince Cable concluded. (
http://bit.ly/1w1Rlt2)
The Telegraph
UK GOVERNMENT RECOVERS 1.36 BLN STG OF MONEY USED TO BAIL OUT
SAVERS IN ICELANDIC BANK
The government has now recovered 85 percent of the money it
spent bailing out hundreds of thousands of British consumers who
risked seeing their savings wiped out when Icesave collapsed. The
Treasury announced on Thursday that it had recovered another 1.36
billion pounds from the estate of Landsbanki, which went bust in
2008. (
http://bit.ly/16wSnbR)
Sky News
MOBILE NETWORKS AGREE DEAL TO BOOST UK COVERAGE A 5 billion
pound project to guarantee mobile phone voice and text coverage to
90 percent of the UK geographical area by 2017 will go ahead. The
deal means the four mobile networks - EE, O2, Three and Vodafone
Group Plc - have all agreed to tackle poor coverage in so-called
partial "not spots." (
http://bit.ly/1w3LyDk)
The Independent
NORTH SEA JOBS TO BE AXED AS OIL PRICE DIVES
Aberdeen could suffer devastating employment cuts say analysts,
after warnings that the North Sea oil industry is "close to
collapse" because of the dramatic fall in oil prices. (
http://ind.pn/1x3k7k9)
AER LINGUS REJECTS TAKEOVER BID FROM BRITISH AIRWAYS OWNER
IAG
Irish airline Aer Lingus Group Plc has rejected a takeover bid
by the International Consolidated Airlines Group , the parent
company of British Airways. (
http://ind.pn/1wQqWCm)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Kansas City Fed manufacturing index for December at
11:00--consensus 7
ANALYST RESEARCH
Upgrades
CVS Health (CVS) upgraded to Buy from Neutral at SunTrust
EPR Properties (EPR) upgraded to Hold from Underweight at
KeyBanc
First Marblehead (FMD) upgraded to Buy from Neutral at
Compass Point
Medical Properties Trust (MPW) upgraded to Hold from
Underweight at KeyBanc
Orange SA (ORAN) upgraded to Buy from Hold at Deutsche Bank
Potash (POT) upgraded to Buy from Neutral at UBS
Ryanair (RYAAY) upgraded to Outperform from In-Line at
Imperial Capital
Unum Group (UNM) upgraded to Buy from Neutral at Compass
Point
WPP PLC (WPPGY) upgraded to Buy from Neutral at Citigroup
Downgrades
Actuant (ATU) downgraded to Hold from Buy at Jefferies
EastGroup Properties (EGP) downgraded to Neutral from Buy at
Goldman
Hartford Financial (HIG) downgraded to Neutral from Buy at
Citigroup
Healthcare Realty Trust (HR) downgraded to Hold from Buy at
KeyBanc
Kinross Gold (KGC) downgraded to Neutral from Buy at UBS
Maxim Integrated (MXIM) downgraded to Neutral from Buy at
Goldman
OGE Energy (OGE) downgraded to Hold from Buy at Wunderlich
Otonomy (OTIC) downgraded to Underperform from Neutral at
BofA/Merrill
RPC, Inc. (RES) downgraded to Neutral from Buy at Citigroup
STAG Industrial (STAG) downgraded to Hold from Buy at MLV
& Co.
Teekay Tankers (TNK) downgraded to Neutral from Buy at UBS
The Pantry (PTRY) downgraded to Underperform from Sector
Perform at RBC Capital
Wesco Aircraft (WAIR) downgraded to Sell from Hold at
Deutsche Bank
Worthington (WOR) downgraded to Hold from Buy at KeyBanc
Initiations
Adept Technology (ADEP) initiated with an Overweight at Piper
Jaffray
AeroVironment (AVAV) initiated with a Neutral at Piper
Jaffray
Anadarko (APC) initiated with a Buy at Guggenheim
Ashford (AINC) initiated with a Buy at MLV & Co.
BE Aerospace (BEAV) resumed with a Buy at Citigroup
Capitala Finance (CPTA) initiated with a Buy at UBS
Clean Harbors (CLH) initiated with a Neutral at Macquarie
Continental Resources (CLR) initiated with a Buy at
Guggenheim
Corrections Corp. (CXW) initiated with a Market Perform at
Wells Fargo
Customers Bancorp (CUBI) initiated with a Market Perform at
Keefe Bruyette
Demandware (DWRE) initiated with an Outperform at RBC Capital
Ellie Mae (ELLI) initiated with an Outperform at RBC Capital
Ellington Residential (EARN) initiated with a Market Perform
at JMP Securities
Geo Group (GEO) initiated with a Market Perform at Wells
Fargo
GrubHub (GRUB) initiated with an Outperform at Oppenheimer
Intermolecular (IMI) initiated with a Market Perform at
Northland
Internap (INAP) initiated with a Buy at Stifel
iRobot (IRBT) initiated with an Overweight at Piper Jaffray
Jumei (JMEI) initiated with a Hold at Brean Capital
KLX Inc. (KLXI) initiated with a Hold at Deutsche Bank
Microchip (MCHP) reinstated with a Neutral at Goldman
Newfield Exploration (NFX) initiated with a Buy at Guggenheim
Oasis Petroleum (OAS) initiated with a Buy at Guggenheim
Opco unsure if Twitter (TWTR) has mass market appeal, starts
at Perform
RSP Permian (RSPP) initiated with a Neutral at Guggenheim
Rackspace (RAX) coverage resumed with a Buy at Stifel
Rexford Industrial (REXR) initiated with a Hold at Jefferies
SM Energy (SM) initiated with a Neutral at Guggenheim
Sotherly Hotels (SOHO) initiated with an Outperform at JMP
Securities
Southwestern Energy (SWN) initiated with a Neutral at
Guggenheim
Stericycle (SRCL) initiated with an Outperform at Macquarie
Telefonica (TEF) reinstated with a Sell at Deutsche Bank
Travelport (TVPT) initiated with a Perform at Oppenheimer
Ubiquiti Networks (UBNT) initiated with a Sell at Goldman
Wabtec (WAB) initiated with a Neutral at Macquarie
Whiting Petroleum (WLL) initiated with a Neutral at
Guggenheim
Wright Medical (WMGI) initiated with a Market Perform at
Wells Fargo
COMPANY NEWS
Ally Financial (ALLY) received DOJ subpoena over subprime
automotive finance
Ally Financial (ALLY) to exit Troubled Asset Relief Program
Atos to buy Xerox's (XRX) IT outsourcing business for $1.05B
Carnival (CCL) announces two new ship orders with Fincantieri
DuPont (DD) announces restructuring, spinoff of chemicals
company
Eli Lilly (LLY), Adocia to co-develop BioChaperone Lispro
FMC Technologies (FTI) awarded $393M subsea systems contract
ImmunoGen reports Phase III MARIANNE study met
non-inferiority endpoint
Journal Communications (JRN) and DISH reach retransmission
agreemnt
Madison Square Garden (MSG) board directs management to
consider additional spin-offs
Maximus (MMS) awarded North East Yorkshire, Humber work Work
Programme contract
Men's Wearhouse (MW), Eminence in standstill agreement
amendment
MetLife (MET) says 'disappointed' in FSOC decision
NQ Mobile (nq) to sell FL Mobil to Tack Fiori International
RCS Capital (RCAP) issues statement regarding recent market
developments
Red Hat (RHT) CFO to retire in next 12 months
Roche (RHHBY) says breast cancer study did not meet PFS
superiority endpoint
Roche (RHHBY) to discontinue Phase III study of Alzheimer's
disease drug
Solazyme (SZYM) begins restructuring plan to reduce 2015
operating expenses by $18.0M
Stadium Capital Management urges Big 5 Sporting (BGFV) to
eliminate 'staggered board'
Transocean (RIG) to scrap seven floaters, sees Q4 charge of
$100M-$140M
Wabash (WNC) authorizes stock repurchase program for up to
$60M
Xerox (XRX) to sell IT outsourcing business to Atos for
$1.05B
EARNINGS
Companies that beat consensus earnings expectations last night
and today include:
Cintas (CTAS), Nike (NKE), AAR Corp. (AIR), Red Hat (RHT)
Companies that matched consensus earnings expectations include:
Pier 1 Imports (PIR)
Xerox (XRX) lowers FY14 adjusted EPS to $1.04-$1.06 from
$1.11-$1.13, consensus $1.12
Xerox (XRX) lowers Q4 adjusted EPS view to 28c-30c from
30c-32c, consensus 31c
Xerox (XRX) lowers FY15 adjusted EPS to $1.05-$1.11 from
$1.11-$1.17, consensus $1.17
Nike (NKE) sees Q3 constant dollar revenue growth in low teens
Nike (NKE) backs FY15 constant dollar revenue growth view
Nike (NKE) sees FY15 China revenue growth in mid teens
range
Red Hat (RHT) sees Q4 EPS 40-41c, consensus 41c
Red Hat (RHT) raises FY15 EPS to $1.57-$1.58, consensus
$1.55
NQ Mobile (NQ) raises FY14 revenue view to $325M-$326M from
$320M-$325M
Cintas (CTAS) sees FY15 EPS ex-tems $3.20-$3.25, consensus
$3.15
Pier 1 Imports (PIR) backs FY15 EPS view 95c-$1.05, consensus
98c
NEWSPAPERS/WEBSITES
Fortress (FIG) looks to sell TRAC Intermodal, Reuters says
Google's (GOOG) next version of Android to be built directly
into cars, Reuters says
Obama administration to ease many parts of Cuba embargo, NY
Times says
Oracle (ORCL) looks like a 'buy', Barron's says
Sony (SNE) loss on 'Interview' may not be covered by
insurance, NY Post says
Sony (SNE) shares could climb 50%, Barron's says
Sony (SNE) unable to find outlet for film as relationships
damaged, NY Times reports
Toyota (TM) to consolidate seat-making operations, Nikkei
reports
SYNDICATE
Alcoa (AA) files to sell 36.52M shares of common stock for
holders
Ally Financial (ALLY) files automatic common stock shelf
Juno Therapeutics (JUNO) 11M M share IPO priced at $24.00
PlasmaTech (PTBI) 3.5M share Secondary priced at $4.00
Teekay Tankers (TNK) files to sell 20M shares of Class A
common stock
