No Sign of Thaw in Obama’s Brief Encounters With Putin (BBG) Japan Lawmakers Prepare for Snap Elections as Abe Mulls Tax (BBG) Global stocks rise, Brent crude hits four-year low (Reuters) U.S., China to Drop Tariffs on Range of Tech Products (WSJ) ‘Too-Big-to-Fail’ Rule Would Raise Bar for Bank Capital (WSJ) ... and mean even bigger taxpayer bailouts Pot in New York: $100 Ticket. No Charges. No Record. No Nothing (BBG) Microsoft unveils first Lumia smartphone without Nokia name (Reuters) Davos-Man Ackermann Lured to Cyprus Bank by Billionaires (BBG) Alibaba, Apple Talks on Payments Tie-Up Focused on China (WSJ) Barclays, HSBC Sued by U.S. Soldiers Over Attacks in Iraq (BBG) Putin Plan for Second China Gas Pipe Will Depend on Price (BBG) Japan Posts Unexpectedly Large Current Account Surplus in September (WSJ) Alibaba Singles' Day sales hit new record; surge past $6 billion (Reuters) Brokers Attack SEC’s Plan as Trojan Horse Designed to Hurt Them (BBG) Continental Resources CEO ordered to pay $995 million in divorce (Reuters) Mersch Says ECB Ready to Widen Purchases to ABS Next Week (BBG)
Overnight Media Summary
WSJ
* President Barack Obama, trying to build a relationship with a China that is being newly wooed by Russia, has sought to carve out some common ground with Beijing's leaders and tread lightly on their domestic political problems, as he outlined his vision for the region at a gathering of Pacific Rim leaders that is being hosted in Beijing. (http://on.wsj.com/10T06hu)
* Global financial regulators have claimed significant progress in ending "too big to fail" and ensuring the world's largest banks can collapse without taxpayer bailouts. (http://on.wsj.com/1xe8kyz)
* President Barack Obama called on the Federal Communications Commission to declare broadband Internet service a public utility, saying that it is essential to the economy and that the "strongest possible rules" are needed to ensure that the Internet doesn't become divided into fast and SLOW lanes. (http://on.wsj.com/1pIEujC)
* China will give investors much greater ACCESS to its stock market, a big step in Beijing's efforts to lure foreign capital and part of attempts to overhaul its economy. (http://on.wsj.com/1qBn43e)
* Russia's battered ruble recovered after President Vladimir Putin dismissed its recent drop as "speculative" and the central bank said it would allow the rate to float freely in the market, reducing its regular interventions and tightening supplies of rubles to discourage domestic investors from betting against the currency. (http://on.wsj.com/11bgwlV)
* More than 800,000 people, including employees, top directors and regulators, could be affected by a COMPUTER systems breach that may have compromised data including names, Social Security numbers and addresses, the U.S. Postal Service has said. (http://on.wsj.com/144KF7H)
* Merck & Co Inc has determined there is no need to write down the value of blockbuster CHOLESTEROL drugs Vytorin and Zetia, suggesting the results of a long-running clinical trial won't hurt their value. (http://on.wsj.com/1GK13JF)
* Honda Motor Co Ltd's chief executive has signaled that the car maker could miss its target of selling 6 million vehicles a year worldwide by March 2017 as the company grapples with several major recalls, some of which have prompted product launch delays. (http://on.wsj.com/11cW5oG)
* Samsung Electronics Co plans to invest up to $3 billion to expand mobile-phone production in Vietnam, one of the company's boldest moves to combat low-cost Chinese rivals who are eating into its smartphone business. (http://on.wsj.com/1zg60VJ)
* More than 200 veterans and their families filed a lawsuit Monday accusing six major banks of helping Iran move tens of millions of dollars to groups targeting U.S. soldiers in Iraq during the war. (http://on.wsj.com/1tB19Jq)
* The U.S. and China reached an agreement to drop tariffs on a wide range of technology products, in a deal that its backers say could cover $1 trillion in trade and that marks a significant accomplishment amid strained ties between Beijing and Washington. (http://on.wsj.com/1GKbFsc)
* Exxon Mobil Corp's Canadian subsidiary, Imperial Oil Ltd said that it has shut down one of its largest oil sands operations for "several weeks" due to a problem in its core processing plant. (http://on.wsj.com/1tB22S8)
* Russia unveiled a new initiative to spread Moscow's message by radio and Internet in 30 different languages, the latest effort in the Kremlin's intensifying information war with the West. (http://on.wsj.com/1tB29NH)
FT
British IT outsourcer and consultancy Quindell finds itself is a fresh controversy after its chairman, Robert Terry, revealed that he sold more than 7 million pounds (US$11 million) in company stock despite claiming that he had been buying shares.
British outsourcer Serco Group PLC cut its profit outlook for the fourth time this year after writing off about 1.5 bln pounds. The company also turned to its investors to raise as much as 550 mln pounds via a rights issue.
Financial technology company TransferWise is close to SECURING a $50 million investment from U.S. venture capital firm Sequoia Capital, valuing the London-based startup at about $1 bln.
South African platinum producer Lonmin said it will cut its investment plans, after five months of strike reduced its expected annual production by a third. Capital expenditure for this year will be $250 mln vs $400 mln as previously outlined.
NYT
* China unveiled a series of measures on Monday aimed at strengthening financial ties with neighboring nations - and potentially weakening Asia's ties to the United States. (http://nyti.ms/1swRMuW)
* In his most direct effort yet to influence the debate about the internet's future, U.S. President Barack Obama said on Monday that a free and open Internet was as critical to Americans' lives as electricity and telephone service and should be regulated like those utilities to protect consumers. (http://nyti.ms/11dcBoF)
* As authorities in the United States and Britain ready actions this week against giant banks suspected of manipulating the foreign currency market, both the number of government agencies involved and the cost of settling the cases continues to grow. The banks learned on Monday that the Commodity Futures Trading Commission in Washington was planning to announce its own settlements in the case, according to people briefed on the matter. (http://nyti.ms/1sxMGPe)
* Juniper Networks Inc said on Monday afternoon that chief executive Shaygan Kheradpir resigned following a review by the company's board into his handling of negotiations with an unnamed customer, as well as his general leadership. He was replaced by Rami Rahim, a 17-year veteran of the networking services provider. (http://nyti.ms/11dd5LB)
* In a securities filing on Monday, GoPro Inc disclosed that it and some of its early investors planned to sell stock in a so-called follow-on offering. The company itself will raise about $100 million, while other investors will sell an as-yet-undisclosed amount of shares. (http://nyti.ms/11ddaPr)
* The conglomerate SHV Holdings of the Netherlands said Monday that it had sweetened its offer for Nutreco, the Dutch supplier of animal food, to 2.98 billion euros or about $3.71 billion, in cash. (http://nyti.ms/1uYoYlF)
China
CHINA SECURITIES JOURNAL
- The impact of the exit of the U.S. from its quantitative easing programme was limited and the development of China's banking sector may enter a "new normal," said Wang Hongzhang, the chairman of China Construction Bank .
- Bank of China has been appointed by the Hong Kong Securities Clearing Company Ltd. as the sole clearing bank for the Shanghai-Hong Kong Stock Connect scheme, the lender said in an statement posted on its website.
- The chance of a sharp renminbi (also known as the "yuan") appreciation in the near term is low considering the strong U.S. dollar and the renminbi's two-way fluctuation, the paper said in a commentary.
CHINA DAILY
- The meeting between China's president Xi Jinping and the Japanese prime minister Shinzo Abe on Monday was desperately needed by Abe to reassure a suspicious public back home that he has not lost traction, said an editorial. Given Abe's less than glorious track record, Japan's words of goodwill need to be matched with action, it said.
SHANGHAI DAILY
- Hong Kong-based FWD Life Insurance Co is seeking a tie-up with a mainland life insurer within two years, said David Wong, the company's CEO.
PEOPLE'S DAILY
- The spirit of understanding is the premise of mutual trust and cooperation among various countries participating in the ongoing APEC roundtable meetings, and it also applies to normal people, the party mouthpiece said in a commentary.
Britain
The Times
* Peter Sands runs short of time to deliver stronger Standard
Investors are calling on Standard Chartered Plc to come clean on its need to raise billions of pounds in capital amid a warning that Peter Sands, the bank's chief executive, has only months to turn the business around. (http://thetim.es/1GJGaOI)
* Plan to bury power lines will cost 7 mln pounds per pylon
Electricity pylons are to be removed from scenic spots for the first time, with the power lines buried underground at a cost of 7 million pounds ($11 million) for each structure. A 500 million pound National Grid scheme will result in 65 pylons being dismantled across Britain. (http://thetim.es/1EvK2Rx)
The Guardian
* Mark Carney hails new deal for 'too big to fail' banks
Policymakers have reached a critical point in their attempts to avoid a repeat of the multibillion-pound taxpayer bailouts of the banking system six years ago, the governor of the Bank of England said on Monday. Mark Carney said new standards being published for 30 of the world's biggest banks should ensure they hold enough capital to absorb any losses they incur, although experts questioned whether this would solve the "too big to fail" problem. (http://bit.ly/1zGh4P3)
* The Gherkin sold to Brazilian billionaire Joseph Safra
The Gherkin, one of London's most recognisable skyscrapers, has been bought by Brazilian billionaire banker Joseph Safra, in a deal thought to be worth more than 700 million pounds. (http://bit.ly/1AX5ccN)
The Telegraph
* Sainsbury loses appeal over Tesco price promise
J Sainsbury Plc has lost a High Court battle with bitter rival Tesco Plc over a public pledge to match the price of fresh and own-brand food. Sainsbury's had pressed for a judicial review of Tesco's Price Promise campaign after claiming it was misleading, unfair and unlawful to compare the price of products from different origins and with different ingredients. (http://bit.ly/144QX7a)
* Russia braces for long economic war with the West
Russia is preparing for a long battle with the West, expecting sanctions to last until at least 2017 and admitting that capital flight has been significantly higher than previously claimed. The central bank slashed its growth forecast for next year to zero and warned of near-recession conditions until late in the decade. (http://bit.ly/1u39Npd)
Sky News
* Row looms as HBOS report faces new delay
The publication of a long-awaited official report detailing the near-collapse of HBOS Plc in 2008 is facing a further delay that could ignite a new political dispute. Regulators are sceptical that they will be able to release the document by the end of next month following a number of objections from LAWYERSacting for some of those named in a draft report. (http://bit.ly/1ssG6IG)
* Aldi pledges to create 35,000 UK jobs
Discount supermarket chain Aldi has announced plans to create 35,000 new jobs in Britain. A proposed 600-million-pound investment, which would include a doubling of its store numbers to 1,000, was confirmed as the Prime Minister visited its UK headquarters in Warwickshire. (http://bit.ly/11buCDP)
The Independent
* Network Rail summons contractor to explain series of serious accidents
Network Rail has summoned the chief executive of its fourth biggest supplier to explain a series of accidents. (http://ind.pn/1oAdBNW)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
NFIB small business optimism index for October at 7:30--consensus 96.0
ANALYST RESEARCH
Upgrades
Alcentra Capital (ABDC) upgraded to Outperform from Market Perform at Keefe Bruyette
Ambac Financial (AMBC) upgraded to Neutral from Sell at MKM Partners
Banco Bilbao (BBVA) upgraded to Buy from Reduce at Nomura
Darden (DRI) upgraded to Buy from Hold at KeyBanc
ICU Medical (ICUI) upgraded to Buy from Neutral at Roth Capital
ICU Medical (ICUI) upgraded to Overweight from Neutral at Piper Jaffray
IMAX (IMAX) upgraded to Buy from Neutral at Goldman
Juniper (JNPR) upgraded to Buy from Neutral at Nomura
Michaels (MIK) upgraded to Overweight from Equal Weight at Morgan Stanley
Midstates Petroleum (MPO) upgraded to Outperform from Market Perform at Northland
Monroe Capital (MRCC) upgraded to Outperform from Neutral at RW Baird
ORBCOMM (ORBC) upgraded to Overweight from Equal Weight at First Analysis
Pattern Energy (PEGI) upgraded to Outperform from Neutral at Macquarie
Time Warner (TWX) upgraded to Conviction Buy from Neutral at Goldman
Tremor Video (TRMR) upgraded to Buy from Hold at Jefferies
Yamana Gold (AUY) upgraded to Overweight from Neutral at HSBC
Zynga (ZNGA) upgraded to Buy from Hold at Jefferies
Downgrades
Ambev (ABEV) downgraded to Neutral from Overweight at JPMorgan
American Equity (AEL) downgraded to Market Perform from Outperform at FBR Capital
ArcelorMittal (MT) downgraded to Neutral from Buy at Citigroup
Cognizant (CTSH) downgraded to Neutral from Buy at UBS
Cracker Barrel (CBRL) downgraded to Hold from Buy at Miller Tabak
DTS, Inc. (DTSI) downgraded to Neutral from Buy at B. Riley
Eaton Vance (EV) downgraded to Sell from Neutral at Citigroup
Guidance Software (GUID) downgraded to In-Line from Outperform at Imperial Capital
Hain Celestial (HAIN) downgraded to In-Line from Outperform at Imperial Capital
JPMorgan (JPM) downgraded to Market Perform from Outperform at Keefe Bruyette
Planar Systems (PLNR) downgraded to Neutral from Buy at Roth Capital
Rayonier (RYN) downgraded to Sector Perform from Outperform at RBC Capital
Regal Entertainment (RGC) downgraded to Hold from Buy at Topeka
Resolute Energy (REN) downgraded to Market Perform from Outperform at Raymond James
Stellus Capital (SCM) downgraded to Market Perform from Outperform at Keefe Bruyette
Turtle Beach (hear) downgraded to Market Perform from Outperform at Northland
Verisk Analytics (VRSK) downgraded to Hold from Buy at Deutsche Bank
WhiteHorse Finance (WHF) downgraded to Market Perform at Keefe Bruyette
WhiteHorse Finance (WHF) downgraded to Neutral from Overweight at JPMorgan
Initiations
Alibaba (BABA) initiated with an Outperform at Oppenheimer
Atento (ATTO) initiated with a Buy at Goldman
Atento (ATTO) initiated with an Outperform at RW Baird
Barracuda Networks (CUDA) initiated with an Outperform at Macquarie
Cerus (CERS) initiated with a Buy at Cantor
Check Point (CHKP) initiated with an Outperform at Macquarie
Diana Shipping (DSX) initiated with a Neutral at Sterne Agee
FireEye (FEYE) initiated with a Neutral at Macquarie
Fortinet (FTNT) initiated with a Neutral at Macquarie
Globus Medical (GMED) initiated with a Buy at Brean Capital
Iconix Brand (ICON) initiated with a Buy at Roth Capital
Imperva (IMPV) initiated with an Outperform at Macquarie
JP Energy (JPEP) initiated with an Outperform at RBC Capital
JP Energy (JPEP) initiated with an Overweight at Barclays
Jacobs Engineering (JEC) initiated with a Market Perform at Cowen
Palo Alto (PANW) initiated with an Outperform at Macquarie
Proofpoint (PFPT) initiated with an Outperform at Macquarie
Qualys (QLYS) initiated with an Underperform at Macquarie
RingCentral (RNG) initiated with an Outperform at Macquarie
Scorpio Bulkers (SALT) initiated with a Buy at Sterne Agee
Scorpio Tankers (STNG) initiated with a Buy at MLV & Co.
Star Bulk Carriers (SBLK) initiated with a Buy at Sterne Agee
Symantec (SYMC) initiated with a Neutral at Macquarie
VWR (VWR) initiated with a Buy at BofA/Merrill
VWR (VWR) initiated with a Buy at Deutsche Bank
VWR (VWR) initiated with a Buy at Goldman
VWR (VWR) initiated with a Buy at Mizuho
VWR (VWR) initiated with an Outperform at Cowen
VWR (VWR) initiated with an Overweight at Barclays
VWR (VWR) initiated with an Overweight at JPMorgan
COMPANY NEWS
Juniper (JNPR) CEO Shaygan Kheradpir stepped down after board review, Rami Rahim appointed CEO. The company said the changes are unrelated to previous statements, outlook
Hertz Global Holdings (HTZ) said it is unable to timely file its Quarterly Report on Form 10-Q for the period ended September 30, 2014 because of the ongoing nature of the company’s previously announced thorough review of its internal financial records for fiscal years 2011, 2012 and 2013
Rackspace (RAX) announced a $500M share repurchase plan, said committed to revenue growth
LifeLock (LOCK) announced that it has restated its unaudited financial statements for periods in 2013 and 2014 due to an error in the formula used to calculate annualized volatility
Caesar's (CZR) said acting to reduce expenses, increase EBITDA
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Ophthotech (OPHT), QIWI (QIWI), Tuniu (TOUR), CUI Global (CUI), Radius Health (RDUS), Consolidated Water (CWCO), Thompson Creek (TC), Independence Contract Drilling (ICD), Atlas Financial (AFH), Chimera (CIM), Tetraphase (TTPH), Odyssey Marine (OMEX), Aratana Therapeutics (PETX), Puma Biotechnology (PBYI), Five Prime (FPRX), Ambac Financial (AMBC), CareDx (CDNA), World Energy Solutions (XWES), magicJack (CALL), Esperion (ESPR), ICU Medical (ICUI), DTS, Inc. (DTSI), Forest Oil (FST), Model N (MODN), Demand Media (DMD), Athersys (ATHX), Premier (PINC), AcelRx (ACRX), HFF Inc. (HF), Portola Pharmaceuticals (PTLA), Omeros (OMER), PDL BioPharma (PDLI), Dynagas LNG (DLNG), Synergy Pharmaceuticals (SGYP), Limelight Networks (LLNW), Wayfair (W), Rackspace (RAX), Intrawest Resorts (SNOW), Town Sports (CLUB), NeoPhotonics (NPTN), Towerstream (TWER), Relypsa (RLYP), Globant (GLOB)
Companies that missed consensus earnings expectations include:
Sage Therapeutics (SAGE), NGL Energy Partners (NGL), Contango Oil & Gas (MCF), Paragon Offshore (PGN), CUI Global (CUI), Energy Recovery (ERII), Atlas Resource Partners (ARP), MTS Systems (MTSC), Full Circle Capital (FULL), Eclipse Resources (ECR), Capitala Finance (CPTA), Enstar Group (ESGR), Cellular Dynamics (ICEL), VAALCO Energy (EGY), American Apparel (APP), DHT Holdings (DHT), Imperial Holdings (IFT), Unilife (UNIS), Kythera (KYTH), Halozyme (HALO), Ascent Capital Group (ASCMA), Lifeway Foods (LWAY), Woodward (WWD), First Marblehead (FMD), Vivint Solar (VSLR), Applied Optoelectronics (AAOI), TriVascular (TRIV), Health Insurance Innovations (HIIQ), Cumulus Media (CMLS), American Midstream Partners (AMID), Halcon Resources (HK), Xencor (XNCR), Turtle Beach (hear), ParkerVision (PRKR), Gaiam (GAIA), Cara Therapeutics (CARA), Caesar's (CZR), Merrimack (MACK), NPS Pharmaceuticals (NPSP), Portfolio Recovery (PRAA), ACADIA (ACAD), Cache (CACH), ZS Pharma (ZSPH), FX Energy (FXEN)
Companies that matched consensus earnings expectations include:
Fortuna Silver Mines (fsm), CM Finance (CMFN), FS Investment (FSIC), Fontegra Financial (FRF), Inter Parfums (IPAR), Euroseas (ESEA), Rockwell Medical (RMTI), inContact (SAAS)
NEWSPAPERS/WEBSITES
Alibaba (BABA) says Singles' Day sales set new record, Reuters reports
Continental Resources (CLR) CEO will pay nearly $1B in divorce, FT reports
Q4 global tablet shipments estimated at 74.5M units, DigiTimes reports (AAPL, SSNLF, LNVGY, AMZN, HPQ)
Southwest (LUV) expects to raise capacity by 6% in 2015, WSJ reports
Yahoo (YHOO) could go higher, Barron's says
SYNDICATE
Alamo Group (ALG) files to sell 1.72M shares for holders
AmSurg (AMSG) files to sell 4.5M shares for holders
Bloomin' Brands (BLMN) files to sell 18.3M shares for Bain Capital
Brixmor (BRX) files to sell 25M shares for holders
Compass Diversified (CODI) files to sell 6M trust shares
El Pollo Loco (LOCO) files to sell 6M shares for holders
Five Prime (FPRX) files to sell $100M in common stock
Mid-Con Energy (MCEP) files to sell 5.8M common units for limited partners
National Retail Properties (NNN) files to sell 4M shares of common stock
Plains GP Holdings (PAGP) 60M share Secondary priced at $25.00
Sprouts Farmers Markets (SFM) files to sell 15M shares for holders
TechTarget (TTGT) files to sell 11.28M shares for holders
