Google's new CFO to make $70 million (
WSJ)
Senate passes Republican budget with deep safety net cuts (
Reuters)
With Yemen strikes, Saudis show growing independence from U.S.
(
Reuters)
Banks Slash Dividends as Loans Sour From Beijing To Pearl River
(
BBG)
North American Railroads Caught by Speed of Crude-Oil Collapse
(
BBG)
Japan’s Zero Inflation a Setback for Abenomics (
WSJ)
Cooperman Says U.S. Seeks Information About Omega Trades (
BBG)
Fed's Top Cop Gets Grilled About Leaks (
BBG)
London Home Prices Gain on Demand for Cheapest Districts (
BBG)
Apple's Tim Cook will give away all his money (
Reuters)
ABN Amro Initial Offering Is Delayed Amid Pay, Probe Queries (
BBG)
Deep in the Rust Belt, Regional Banks Fill Industrial Niche (
WSJ)
Overnight Media Digest
WSJ
* Google's incoming CFO, Ruth Porat, will receive a $5 million
signing bonus plus $65 million worth of restricted stock, making
her one of the highest paid CFOs. (
http://on.wsj.com/192Cif1)
* Toyota broke a two-year silence on a revamped manufacturing
process - built on sharing components among vehicles - that it says
will produce half its vehicles by 2020 and slash costs. (
http://on.wsj.com/1Bw7kUl)
* Pemex has landed its first major investment since an energy
overhaul opened the sector to private players. BlackRock and First
Reserve will put up about $900 million for a 45 percent stake in a
pipeline project. (
http://on.wsj.com/1D4b1Xn)
* Hewlett-Packard Co is nearing a deal to sell control of its
data-networking business in China to Tsinghua Unigroup Ltd,
according to people familiar with the matter. (
http://on.wsj.com/1M8EnYV)
* Brazil's state-run oil firm Petroleo Brasileiro SA said that
it appointed Luciano Coutinho, head of the country's development
bank, as its new chairman. (
http://on.wsj.com/1Ng1Moe)
* German auto maker Mercedes-Benz says its coming offering will
appeal to existing pickup owners looking for greater luxury and
comfort than now available from midsize pickups from Toyota,
General Motors and others. (
http://on.wsj.com/1IBORdD)
FT
Swiss-based Edmond de Rothschild Group will issue a cease and
desist order to the French financial adviser Rothschild and Cie for
unfairly using its family name. The Swiss company said that Paris
Orleans SA, the parent of Rothschild and Cie, has unfairly referred
to itself as the "parent of the Rothschild Group".
Chancellor George Osborne rejected advice from the Foreign and
Commonwealth Office while deciding to join China's Asia
Infrastructure Bank. Officials in China and the UK had warned
Osborne that his decision would alienate allies from Japan and the
US. The chancellor raised his decision at the meeting of the
National Security Council, which was approved by the Prime
Minister.
The UK Government abandoned plans to extend rights of the
builders to convert offices into homes after a backlash from London
boroughs, business leaders and the Mayor of London, Boris Johnson.
The rules to convert offices to homes had been relaxed in 2013 for
a three year period.
MPs called the Financial Conduct Authority a 'dysfunctional'
institution in a 83-page report indicating that the UK regulators
failings were serious enough to require special actions. MPs said
that the FCA must compete a detailed inquiry on the culture and
governance of the regulator.
NYT
* A recent internal report from Citigroup's cyberintelligence
center warned bank employees of the threat of attacks on the
networks and websites of big law firms. The report, issued last
month, said it was reasonable to expect law firms to be targets of
attacks by foreign governments and hackers because they are
repositories for confidential data on corporate deals and business
strategies. (
http://nyti.ms/1M8Q4in)
* Oil prices rose sharply on Thursday amid concerns that
fighting in the Arabian Peninsula between a Saudi-led coalition and
Houthi rebels in Yemen could disrupt supplies. (
http://nyti.ms/1M8QKUF)
* Entertainment network HBO is strengthening its relationship
with Vice, a media company and news organization. It said on
Thursday that it would broadcast a daily half-hour Vice newscast.
The program is to run five days a week for 48 weeks a year. Richard
Plepler, chief executive of HBO, said it would have its debut this
year. (
http://nyti.ms/1M8RhGk)
* The House overwhelmingly approved sweeping changes to the
Medicare program on Thursday in the most significant bipartisan
policy legislation to pass through that chamber since Republicans
regained a majority in 2011. The legislation, approved in the House
by a vote of 392 to 37, embodies a rare and significant agreement
negotiated by Speaker John Boehner and the House Democratic leader,
Representative Nancy Pelosi of California. (
http://nyti.ms/1M8RNUR)
* South Korea on Thursday became the latest American ally to
announce its intention to join the Asian Infrastructure Investment
Bank despite Washington's qualms about the Chinese-led regional
development bank. (
http://nyti.ms/1M8ScXh)
Canada
CHINA SECURITIES JOURNAL
- Wan Feng, chairman of New China Life Insurance , said its
premium income is expected to achieve single-digit growth in 2015.
Its vice chairman Chen Guogang said the company would maintain a
cautious stance and would continue to invest in fixed income
projects, not derivatives projects.
CHINA DAILY
- China and Sri Lanka have ended a stalemate over a $1.4 billion
port project in the island nation's capital of Colombo. During
meetings with Chinese leaders in Beijing on Thursday, Sri Lankan
President Maithripala Sirisena promised to continue the
infrastructure project, which was suspended by the country's
current administration.
21st CENTURY BUSINESS HERALD
- The main targets of China's thirteenth five-year plan are to
boost economic transformation and upgrading, and to adjust to the
new normal, said Guo Lian, official of National Development and
Reform Commission.
China
THE GLOBE AND MAIL
** The Alberta government plans to raise C$9.746 billion ($7.78
billion) in debt this year, the largest financing it has done in at
least 15 years as the province copes with a painful slump in oil
prices. (bit.ly/1OCgwQ8)
** The Supreme Court of Canada is scheduled to rule on Friday
morning on whether Quebec has the right to obtain records from the
now-abolished federal long-gun registry or whether Ottawa can
destroy the records. (bit.ly/1ICJyLg)
** A hundred Iranians who wish to become business immigrants to
Canada have written to Foreign Affairs Minister Rob Nicholson
complaining that his office delayed their applications for up to
two years because of economic sanctions against Iran.
(bit.ly/1xjYBYW)
NATIONAL POST
** Comark Inc, owner of Ricki's, Bootlegger and Cleo, has joined
the swelling ranks of homegrown Canadian fashion chains who have
filed for bankruptcy protection and are closing some stores.
(bit.ly/1BtzePW)
** In a sign of how touchy bilingualism issues can get in New
Brunswick, the province's education minister has vowed to take
action after learning French and English-speaking students have
been travelling on the same school bus. (bit.ly/1CsPHZi)
** Average energy bills in Ontario are set to increase by as
much as C$137 a year starting in 2016 due to program changes
announced by the Liberal government on Thursday, including a new
rebate to help low-income families. (bit.ly/1Nljfdl)
Britain
The Times
AA PROMISES TO RESUME DIVIDENDS BY RAISING 1 BLN POUNDS
AA Plc intends to raise almost 1 billion pounds ($1.49 billion)
from share and loan sales as it moves to tackle its debt and resume
dividend payments. As part of the plan, which was accompanied by a
strategic update and the publication of annual profits, the
recently listed roadside recovery group said it would raise 200
million pounds from a placement with shareholders. (
http://thetim.es/1Gwvund)
MOBILE WAR AS BT OFFERS 4G DEAL FOR 5 POUNDS A MONTH
BT Group Plc has marked its return to the consumer mobile market
with a price war after launching a 4G package for 5 pounds a month.
It hopes to get a foothold in the mobile market under its own steam
before the completion of its 12.5 billion pound takeover of EE. (
http://thetim.es/1FNY84d)
The Guardian
CAMERON CONCEDES DEFEAT OVER PUBLICATION OF PRINCE CHARLES'S
LETTERS
David Cameron has admitted defeat after the government lost a
10-year battle with the Guardian to keep secret a "particularly
frank" cache of lobbying letters written by Prince Charles.
Following a supreme court ruling that 27 letters between the heir
to the throne and ministers must finally be published under the
Freedom of Information Act, the prime minister has told aides to
prepare their release. (
http://bit.ly/1xD8D7N)
STUDENT CLEARED OF LONDON TERROR CHARGE AFTER PARTIALLY SECRET
TRIAL
A man who faced accusations that he was plotting to mount an
Islamic State-inspired gun or bomb attack on the streets of London
has been acquitted after a highly secretive Old Bailey trial. Erol
Incedal, 27, was cleared of preparation of acts of terrorism after
a four-week retrial in which large parts of the evidence were heard
inside a locked courtroom. (
http://bit.ly/1EXxLG0)
The Telegraph
FRED GOODWIN TOLD TO HAND OVER PRIVATE EMAILS IN ROYAL BANK OF
SCOTLAND LAWSUIT
Fred Goodwin has been told to disclose personal emails he sent
in the run-up to Royal Bank of Scotland Group Plc's 2008 rights
issue, as part of a 4 billion pounds court case. The bank's former
chief executive, who lost his knighthood over the bank's collapse,
is among a number of ex-directors who will have to reveal the
private email accounts used to discuss the controversial share
sale. (
http://bit.ly/1BvOE73)
LIQUIDITY STORM COULD THROW UK INTO CHAOS, BANK OF ENGLAND
WARNS
The Bank of England has warned that a global liquidity storm
could endanger financial stability if investors suddenly demanded
their money back, adding that the threat of a Greek default posed
"significant risks" to the UK. (
http://bit.ly/1FWx2WV)
Sky News
CO-OP BANK SECURES CHIEF EXECUTIVE UNTIL 2017
The struggling Co-operative Bank will announce that it has
struck a deal to keep its chief executive until at least 2017 as it
attempts to return to profitability. Niall Booker, a former HSBC
Bank Plc executive, has agreed to remain in his post for about two
more years amid pressure from regulators for continuity at the helm
of the embattled lender. (
http://bit.ly/1ydgtjd)
FORMER OFCOM CHIEF TO LEAD BANK BODY OVERHAUL
The former head of the media regulator is to spearhead a plan to
overhaul the myriad trade associations which represent Britain's
beleaguered banking industry. Ed Richards, who stepped down as
chief executive of Ofcom at the end of last year, will be named to
his first major post since leaving the regulator. (
http://bit.ly/19nN67i)
The Independent
LONDON ARMS FAIR COULD BE USED TO SELL TORTURE INSTRUMENTS, MPS
FEAR
MPs fear that some exhibitors at the world's biggest arms fair,
to be held in London in September, could try to use the event to
promote the sale of instruments of torture. The powerful Arms
Export Control Committee had hoped to see the terms of the
agreement between the company running Defence and Security
Equipment International (DSEI), Clarion Events, and the government
before the general election. (
http://ind.pn/19W5o0G)
SPORTS DIRECT IS BEING RUN LIKE 'BACKSTREET OUTFIT', MPS SAY
The chairman of Sports Direct International Plc is presiding
over a FTSE 100 company run like a "backstreet outfit" where
executives made deals behind the board's back, withheld payments to
force suppliers and landlords to the negotiating table and failed
to consult with staff over the pre-pack administration of its
fashion chain USC, according to MPs. (
http://ind.pn/1IASrF9)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
GDP for Q4 at 8:30, consensus 2.4%
University of Michigan's consumer sentiment at 10:00,
consensus 92.1
Fed Chair Janet Yellen speaks at San Francisco Fed conference
at 3:45
ANALYST RESEARCH
Upgrades
A. Schulman (SHLM) upgraded to Overweight from Sector Weight at
KeyBanc
BB&T (BBT) upgraded to Outperform from Market Perform at
FBR Capital
Bunge (BG) upgraded to Buy from Neutral at Goldman
Ensign Group (ENSG) upgraded to Outperform from Market
Perform at Wells Fargo
Regions Financial (RF) upgraded to Buy from Neutral at
Compass Point
SunCoke Energy Partners (SXCP) upgraded to Buy from Neutral
at Citigroup
Downgrades
Alkermes (ALKS) downgraded to Neutral from Buy at Citigroup
American Eagle (AEO) downgraded to Sell from Neutral at
Goldman
ArcelorMittal (MT) downgraded to Sell from Neutral at
Citigroup
Diodes (DIOD) downgraded to Outperform from Strong Buy at
Raymond James
EMC (EMC) downgraded to Sector Perform from Outperform at
Pacific Crest
Epizyme (EPZM) downgraded to Neutral from Buy at Citigroup
FutureFuel (FF) downgraded Neutral at Roth Capital
GameStop (GME) downgraded to Neutral from Buy at B. Riley
MSC Industrial (MSM) downgraded to Neutral from Outperform at
RW Baird
Power Integrations (POWI) downgraded to Market Perform at
Raymond James
SanDisk (SNDK) downgraded to Hold from Buy at Evercore ISI
Semtech (SMTC) downgraded to Outperform from Strong Buy at
Raymond James
Vantiv (VNTV) downgraded to Reduce from Neutral at SunTrust
WESCO (WCC) downgraded to Neutral from Outperform at RW Baird
World Acceptance (WRLD) downgraded to Underperform from
Neutral at Macquarie
Initiations
Arista Networks (ANET) initiated with a Neutral at Guggenheim
Charles Schwab (SCHW) initiated with an Outperform at RBC
Capital
Cisco (CSCO) initiated with a Neutral at Guggenheim
ClubCorp (MYCC) initiated with a Buy at Stifel
Colfax (CFX) initiated with a Market Perform at William Blair
Con-way (CNW) initiated with an Outperform at Macquarie
E-Trade (ETFC) initiated with an Outperform at RBC Capital
Esperion (ESPR) assumed with a Buy at Citigroup
F5 Networks (FFIV) initiated with a Buy at Guggenheim
FireEye (FEYE) initiated with a Market Perform at Raymond
James
Heartland Express (HTLD) initiated with a Neutral at
Macquarie
Infoblox (BLOX) initiated with a Buy at Guggenheim
Jazz Pharmaceuticals (JAZZ) assumed with a Buy at Citigroup
Juniper (JNPR) initiated with a Neutral at Guggenheim
Knight Transportation (KNX) initiated with an Outperform at
Macquarie
LabCorp (LH) initiated with an Outperform at JMP Securities
Morgan Stanley says Yahoo (YHOO) attractive way to buy
Alibaba
Netgear (NTGR) initiated with a Neutral at Guggenheim
Novavax (NVAX) assumed with a Buy at Citigroup
Quest Diagnostics (DGX) initiated with a Market Perform at
JMP Securities
Repsol (REPYY) initiated with an Underperform at Jefferies
Ruckus Wireless (RKUS) initiated with a Buy at Guggenheim
Sonus (SONS) initiated with a Neutral at Guggenheim
TD Ameritrade (AMTD) initiated with a Sector Perform at RBC
Capital
The Medicines Co. (MDCO) assumed with a Neutral at Citigroup
Ubiquiti Networks (UBNT) initiated with a Neutral at
Guggenheim
Yahoo (YHOO) initiated with an Overweight at Morgan Stanley
Zayo Group (ZAYO) initiated with an Overweight at
JPMorgan
COMPANY NEWS
Yahoo (YHOO) approved additional share repurchase program of $2B
RBS (RBS) to sell internationally managed private banking and
wealth management unitto UBP SA
Chevron (CVX) sold interest in Caltex Australia
Orexigen Therapeutics (OREX) said the European Commission
granted marketing authorization for Mysimba
BlackRock (BLK), First Reserve to acquire equity stakes in
PEMEX pipeline projects
GameStop (GME) sees FY software growth 4%-6%. The company
also said it sees Q1 SSS growth 2.5%-5.5%
EARNINGS
Companies that beat consensus earnings expectations last night
and today include:
ChinaCache (CCIH), Marathon Patent Group (MARA), Onconova
(ONTX), Agile Therapeutics (AGRX), Roka Bioscience (ROKA), Gevo
(GEVO), Cara Therapeutics (CARA), Minerva (NERV), OncoGenex (OGXI),
Restoration Hardware (RH), Oxford Industries (OXM)
Companies that missed consensus earnings expectations include:
GameStop (GME), Spark Energy (SPKE), Upland Software
(UPLD)
Restoration Hardware (RH) sees Q1 EPS 18c-20c, consensus 23c,
sees FY15 EPS $2.95-$3.10, consensus $3.00
GameStop (GME) sees Q1 EPS 53c-60c, consensus 66c, sees FY15
EPS $3.60-$3.80, consensus $4.04
PolyOne (POL) targets double digit EPS expansion in 2015
NEWSPAPERS/WEBSITES
Ben Harrington, former M&A and Markets Editor at the Daily
Telegraph and current editor of the blog Betaville, said that Shire
(SHPG) is weighing a takeover of BioMarin (BMRN)
HP (HPQ) close to deal to sell control of H3C Technologies,
WSJ reports
Facebook (FB) to test drone this summer, WSJ reports
Apple (AAPL) secretly acquired Acunu in 2013, Bloomberg
reports
PetroChina (PTR) in active discussions to swap Canadian
assets, Financial Times reports
Microsoft (MSFT) to push two inexpensive notebooks in
mid-2015, DigiTimes reports
SYNDICATE
Applied DNA Sciences (APDN) files to sell common stock, warrants
Central Pacific (cpf) files to sell 7.6M shares of common
stock for holders
Corporate Office Properties (OFC) files 3.86M common shares
of beneficial interest
Jernigan Capital (JCAP) 5M share IPO priced at $20.00
Knightsbridge Shipping (VLCCF) files to sell 62M shares for
holders
Terreno Realty (TRNO) files to sell common, preferred stock
TriplePoint Venture (TPVG) commences offering of 6.5M shares
of common stock
