• EU to weigh extensive sanctions on Russia (FT)
• U.S. lifts flight ban to Israel (Reuters)
• Russia says will cooperate with MH17 probe led by Netherlands (Reuters)
• Norway faces ‘concrete and credible’ terrorist threat (FT)
• Don’t Tell Anybody About This Story on HFT Power Jump Trading (BBG)
• But... but... PMI: Unilever Sales Growth Misses Estimates on Asian Slowdown (BBG)
• World’s Biggest Wealth Fund Reviews $8 Billion Russian Stake (BBG)
• Qualcomm latest US tech company to reverse in China (FT)
• Hamptons Home Sales Rise as Buyers Find More Inventory (BBG)
• Ex-Goldman Trader’s Bitcoin Exchange to Fill Mt. Gox Void (BBG)
• Mutiny at the BOJ: Bank of Japan Majority Won’t Be Swayed by Kuroda Ideology (BBG)
• Singapore Home Prices Set to Extend Drop, Keppel Land Says (BBG)

Overnight Media Digest

WSJ

* Two Ukrainian fighter jets were shot down Wednesday over separatist-held territory not far from the site of the Malaysia Airlines crash as international outrage over the tragedy has done little to slow fighting in eastern Ukraine. (http://on.wsj.com/1pc31qs)

* The Obama administration, Israel and other Middle East allies are refashioning an Egyptian cease-fire proposal to assure Hamas that Gaza's economic interests would be addressed if the Islamist group stops rocket attacks, senior U.S. and Arab officials said. (http://on.wsj.com/1sUzA2G)

* The largest public pension fund in the U.S., the California Public Employees' Retirement System, or Calpers is expected to cut its hedge-fund investments this year by 40 percent to $3 billion. Public pensions from California to Ohio are backing away from hedge funds because of concerns about high fees and lackluster returns. (http://on.wsj.com/1nWeo4p)

* A number of major banks are looking to simultaneously settle probes into allegations of foreign-exchange rate-rigging with the U.K.'s Financial Conduct Authority, according to people familiar with the matter. Banks like Barclays PLC and UBS AG are aiming to reach individual settlements with regulators that will be announced at the same time, these people say. (http://on.wsj.com/1oeuZ8p)

* The U.S. airline industry's newfound health is breeding something not seen in years: a flock of startups. Two fledging carriers already have taken off. One is a reincarnation of the old People Express Airlines. Others are still in various stages of incubation, hoping to raise sufficient funds and receive government clearance to take wing. (http://on.wsj.com/1jWkYwU)

* Gilead Sciences Inc's Hepatitis C pill, Sovaldi, notched $3.5 billion in second-quarter sales, catapulting Gilead into the ranks of the top-selling pharmaceutical companies.(http://on.wsj.com/1z5gIi5)

* The U.S. government has asked big banks whether it should issue bonds that mature in more than 30 years. The treasury department asked 22 primary dealer banks, which underwrite U.S. government debt sales, about possible demand for ultra-long-term sovereign bonds. (http://on.wsj.com/1tDbW8r)

* Cable magnate John Malone said in an interview that Twenty-First Century Fox has long been eyeing a takeover bid for Time Warner Inc and isn't likely to face competing bidders, pouring cold water on speculation that tech companies could emerge as rival suitors for the TV and movie company. (http://on.wsj.com/1z5upNS)

* J.P. Morgan Chase & Co has sharply pulled back from a popular mortgage-lending program this year, blaming Obama administration's zeal for litigation. (http://on.wsj.com/1pdsn7k)

* The Securities and Exchange Commission told Standard & Poor's Ratings Services that it could face an enforcement action for alleged securities fraud regarding six commercial real-estate deals in 2011, according to a Wednesday filing by S&P parent McGraw Hill Financial Inc (http://on.wsj.com/1lxLKXn)

FT

BSkyB is expected to announce its European expansion on Friday, by buying Rupert Murdoch's pay-TV assets in Italy and Germany, two people familiar with the deal said.

Standard Chartered Plc Chairman Sir John Peace is weighing a succession plan, and has been urged to conduct a search both internally and externally over the next 12 months, three people familiar with the matter said.

Britain's Department of Energy and Climate Change will appeal a High Court decision which overruled its plans to drop one of Drax Group's coal-to-biomass conversion projects from a new renewable energy subsidy scheme.

UK wealth managers are facing "considerable uncertainty" as lower trading commissions in the last quarter hurt managers including Brewin Dolphin and Charles Stanley.

The Bank of England is weighing up conflicting data on Britain's labour market as it prepares to start raising interest rates off their record low of the last five years, BoE Governor Mark Carney said.

NYT

* From factory inspections to product recalls, laboratory testing to prosecutions, China's emergent food-quality apparatus has turned into reform on the fly, with ever-changing threats and setbacks. (http://nyti.ms/1sVA3la)

* Facebook Inc posted higher revenue and profit for the second quarter, driven by revenue from apps on mobile devices and advertisements shown in the news feeds. Mobile devices accounted for nearly two-thirds of the company's revenue, which rose 61 percent over the same quarter last year. (http://nyti.ms/1x33wHJ)

* The White House Rural Council will announce plans on Thursday to start a $10 billion investment fund that will give pension funds and large investors the opportunity to invest in agricultural projects. Those include wastewater systems, energy projects and infrastructure development in rural America. (http://nyti.ms/1sVilhy)

* General Motors Co recall covers 800,000 more vehicles. The auto company announced six more recalls on Wednesday for various flaws, and its worldwide recall total for 2014 is 29 million.(http://nyti.ms/1ravFed)

* For years, the wind industry has been hampered by such a severe lack of transmission lines that when the wind is strong, a local power surplus forces some machines to be shut down. Now, Texas is out to change that by conducting a vast experiment that might hold lessons for the rest of the United States. Supporters say the experiment is essential if states want to reduce reliance on fossil fuels and meet new federal rules on carbon emissions. (http://nyti.ms/1rw5Mre)

* The new rules by the U.S. Transportation Department would include measures to enhance the safety of oil trains, some of which had already been adopted by railroads on a voluntary basis in recent months, like notifying state emergency responders about train traffic, reducing speed limits or picking the safest route. (http://nyti.ms/1kcXjst)

* The resignation of Prime Minister Plamen Oresharski and his cabinet comes as Bulgaria's worst banking crisis since the 1990s threatens to take an economic toll on local businesses and foreign investors. And there may be no quick resolution of a rescue plan for troubled Corporate Commercial Bank. (http://nyti.ms/1pdV0nN)

* Nearly six years since the panic after the collapse of Lehman Brothers Holdings Inc, the Securities and Exchange Commission's new rules are intended to prevent investors from dumping their shares in funds during times of stress. (http://nyti.ms/1rMIJHU)

* After a riveting corporate shake-up that began last month after the firing of its controversial founder and chief executive, Dov Charney, American Apparel named four new members to its board. (http://nyti.ms/1sVCLqT)

Canada

THE GLOBE AND MAIL

* Canada is facing criticism over provincial jails bursting with prisoners who are presumed innocent, creating in effect a system of punishment without trial. (http://bit.ly/1pewcvI)

* The Arctic may be a hot commodity, with remarkable resource and tourism opportunities, but a conference has heard that Canada and the United States are barely out of the ice age when it comes to harnessing its growth. (http://bit.ly/WF26IL)

Reports in the business section:

* Bombardier Inc is reorganizing its operations into four divisions in a move that will cause 1,800 job losses and the retirement of Bombardier Aerospace president Guy Hachey, who held overall responsibility for the struggling C Series airplane program. (http://bit.ly/1pKtDQQ)

NATIONAL POST

* An international alert accusing a man living north of Toronto of being a mob boss went ignored by Canadian police because Canada does not recognize the crime of Mafia association, the tool used by the Italian government to tackle powerful organized crime groups, an immigration hearing heard on Wednesday. (http://bit.ly/WIsUHN)

* A Canadian group is planning to bring about 1,000 litres of water from Windsor to Detroit to protest thousands of residential service shutoffs by Detroit's water department. (http://bit.ly/1kXgS2E)

FINANCIAL POST

* Calgary, Canada's oil capital, has surpassed Ottawa as the city with the nation's highest family incomes, new data show. The median family income in the southern Alberta city rose 5.2 percent to C$98,300 ($91,700) in 2012, the most-recent reporting period, to snag top spot in the nation, Statistics Canada said on Wednesday. (http://bit.ly/1rDi4zN)

* Bombardier Inc's chief operating officer and president of the aerospace division Guy Hachey is retiring as part of a sweeping restructuring, the company said late on Wednesday. The move comes amid multiple delays in development of the flagship CSeries jet. (http://bit.ly/1peDwVB)

Britain

The Times

ANGRY STANDARD CHARTERED INVESTORS HEAP PRESSURE ON SANDS

(http://thetim.es/1nWbkFu)

One top-ten shareholder of the Standard Chartered, speaking on condition of anonymity, voiced a growing frustration that the bank needed a hands-on manager rather than a high-level thinker.

BG GROUP PONDERS 1 BLN STG NORTH SEA SALE

(http://thetim.es/1x3xwmP)

BG Group is understood to have appointed Rothschild to advise on a restructuring in a move that could result in the sale of its Armada, Everest and Lomond platforms.

The Guardian

RYANAIR TOLD TO PAY BACK 10M IN ILLEGAL STATE AID FROM FRANCE

(http://bit.ly/Uu2Oq8)

Low-cost airline Ryanair must repay nearly 10 million euros ($13.46 million) in illegal state aid it received from France for operating at three small regional airports, European Union regulators said.

BANK OF ENGLAND HOLDS INTEREST RATES AMID CONCERN FOR WAGE GROWTH

(http://bit.ly/1mGqui2)

Bank of England policymakers are growing increasingly uneasy about the UK's record low interest rates - but signalled on Wednesday that the first rise will not come until real wages start to recover.

The Telegraph

ENERGY COMPETITION PROBE TURNS UP HEAT ON THE BIG SIX

(http://bit.ly/1kWahFO)

Britain's top competition watchdog will on Thursday set out a catalogue of concerns about the UK energy sector as it begins an 18-month investigation that could result in the Big Six suppliers being broken up.

SFO TO CHARGE ALSTOM OVER 'CORRUPTION' AND MOVES AGAINST UK ARM

(http://bit.ly/WDCOum)

The Serious Fraud Office has said it will file corruption charges against Alstom "imminently", after starting proceedings against two of the French engineering giant's companies in the UK.

Sky News

SCOTTISH REFERENDUM: BANKS WEIGH NEW WARNINGS

(http://bit.ly/1oepkPZ)

Britain's biggest banks are weighing up plans to outline further risks associated with Scottish independence when they unveil half-year results with less than 50 days to go before the crucial vote.

UKTI CEO HAILS 'OPEN' EXPORTS AMID RUSSIA ROW

(http://bit.ly/1rtiQO5)

The head of the Government's trade promotion agency has hailed Britain's "clear and transparent" export control regime amid a growing row over the number of UK licences allowing arms sales to Russia.

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Jobless claims for week of July 19 at 8:30--consensus 310K
Markit U.S. manufacturing PMI for July at 9:45--consensus 57.5
New home sales for June at 10:00--consensus down 5.8% to 475K rate

ANALYST RESEARCH

Upgrades

Carmike Cinemas (CKEC) upgraded to Buy from Hold at Topeka
Health Net (HNT) upgraded to Buy from Underperform at BofA/Merrill
MarketAxess (MKTX) upgraded to Outperform from Market Perform at Raymond James
PepsiCo (PEP) upgraded to Buy from Hold at Stifel
SEI upgraded to Outperform from Market Perform at Keefe Bruyette
Western Refining Logistics (WNRL) upgraded to Buy from Neutral at Goldman
Wilshire Bancorp (WIBC) upgraded to Strong Buy from Outperform at Raymond James

Downgrades

Angie's List (ANGI) downgraded to Equal Weight from Overweight at First Analysis
Angie's List (ANGI) downgraded to Neutral from Buy at BofA/Merrill
Angie's List (ANGI) downgraded to Neutral from Buy at Janney Capital
Angie's List (ANGI) downgraded to Neutral from Buy at MKM Partners
Angie's List (ANGI) downgraded to Perform from Outperform at Oppenheimer
Angie's List (ANGI) downgraded to Sector Perform from Outperform at RBC Capital
Boeing (BA) downgraded to Neutral from Buy at BofA/Merrill
Freeport McMoRan (FCX) downgraded to Neutral from Buy at BofA/Merrill
IDEX Corp. (IEX) downgraded to Neutral from Buy at Janney Capital
Magellan Midstream (MMP) downgraded to Neutral from Buy at Goldman
Owens Corning (OC) downgraded to Hold from Buy at Stifel
Pacific Coast Oil (ROYT) downgraded to Market Perform from Outperform at Wells Fargo
Praxair (PX) downgraded to Market Perform from Outperform at William Blair
Qualcomm (QCOM) downgraded to Equal-Weight from Overweight at Evercore
Qualcomm (QCOM) downgraded to Neutral from Positive at Susquehanna
Questar (STR) downgraded to Neutral from Buy at Citigroup
TAL International (TAL) downgraded to Underperform from Neutral at BofA/Merrill
Theravance (THRX) downgraded to Neutral from Buy at BofA/Merrill
Tractor Supply (TSCO) downgraded to Market Perform from Outperform at William Blair
TripAdvisor (TRIP) downgraded to Hold from Buy at Cantor

Initiations

CECO Environmental (CECE) initiated with a Buy at Canaccord
CyrusOne (CONE) initiated with an Equal Weight at Barclays
Equinix (EQIX) initiated with an Equal Weight at Barclays
Markit (MRKT) initiated with a Hold at Jefferies
Zafgen (ZFGN) initiated with an Outperform at Leerink

COMPANY NEWS

Facebook (FB) reported mobile daily active users up 31% year-over-year
Standard Chartered (SCBFF) board dismissed succession plan rumors
McGraw Hill Financial (MHFI) announced that on July 22, it received a "Wells Notice" from the SEC stating that the agency’s staff made a preliminary determination to recommend that the Commission institute an enforcement action against Standard & Poor's Ratings Services, alleging violations of federal securities laws with respect to S&P's ratings of six commercial mortgage backed securities transactions issued in 2011
Spectranetics (SPNC) received FDA clearance for atherectomy products, Turbo-Tandem and Turbo Elite
Engaged Capital reported a 7% stake in Jamba (JMBA) and announced that they had discussions with management
American Apparel (APP) named four new board members, including one woman
Cliffs Natural (CLF) lowered U.S. iron ore production view to low end of prior outlook

EARNINGS

Companies that beat consensus earnings expectations last night and today include:

Facebook (FB), Qualcomm (QCOM), Ford (F), Wyndham (WYN), Eli Lilly (LLY), Diamond Offshore (DO), Carter's (CRI), Patterson-UTI Energy (PTEN), Starwood (HOT), Proto Labs (PRLB), Potash (POT), Logitech (LOGI), Weatherford (WFT), CoStar Group (CSGP), O'Reilly Automotive (ORLY), PTC Inc. (PTC), CVB Financial (CVBF), Ethan Allen (ETH), Core Laboratories (CLB), Oceaneering (OII), Teradyne (TER), Horizon Bancorp (HBNC), IPC The Hospitalist Co. (IPCM), Graco (GGG), Cliffs Natural (CLF), Susquehanna (SUSQ), Astoria Financial (AF), Equifax (EFX), Berkshire Hills Bancorp (BHLB), Raymond James (RJF), Fortinet (FTNT), Tyler Technologies (TYL), WesBanco (WSBC), Quantum (QTM), Financial Institutions (FISI), Everest Re (RE), Allegiant Travel (ALGT), Assurant (AIZ), Polycom (PLCM), E-Trade (ETFC), Umpqua Holdings (UMPQ), Illumina (ILMN), Covenant Transportation (CVTI), Skechers (SKX), Citrix (CTXS), CA Technologies (CA), NeuStar (NSR), Sangamo (SGMO), F5 Networks (FFIV), TriQuint (TQNT), Healthways (HWAY), QCR Holdings (QCRH), AngioDynamics (ANGO), Hanesbrands (HBI), Gilead (GILD), Banner Corp. (BANR), Chemed (CHE), Cirrus Logic (CRUS)

Companies that missed consensus earnings expectations include:

AT&T (T), TripAdvisor (TRIP), Encana (ECA), NorthWestern (NWE), NorthWestern (NWE), WESCO (WCC), Cabot Microelectronics (CCMP), Quality Systems (QSII), Precision Castparts (PCP), The Bancorp (TBBK), MSA (MSA), Heritage-Crystal Clean (HCCI), Terex (TEX), TAL International (TAL), TriState Capital (TSC), Old Second Bancorp (OSBC), Morningstar (MORN), TESSCO (TESS), Interface (TILE), Horace Mann (HMN), Allied World (AWH), CoreLogic (CLGX), Cheesecake Factory (CAKE), InspireMD (NSPR), Flowserve (FLS), StanCorp (SFG), Torchmark (TMK), Angie's List (ANGI)

Companies that matched consensus earnings expectations include:

Sequans (SQNS), Dunkin' Brands (DNKN), Capital Bank (CBF), Radware (RDWR), United Community Banks (UCBI), Sallie Mae (SLM), Guaranty Bancorp (GBNK), United Financial (UBNK), OFG Bancorp  (OFG), United Stationers (USTR), Allison Transmission (ALSN), 8x8, Inc. (EGHT), Datawatch (DWCH), Tractor Supply (TSCO)

NEWSPAPERS/WEBSITES

Qualcomm (QCOM) confirmed in China as having monopoly, China Daily reports
Watchdog says Google (GOOG) evokes memories meant to be omitted, Bloomberg reports
Bombardier (BDRBF) to cut 1,800 aerospace jobs in revamp, Reuters reports
Carlyle (CG) to be last PE firm to face bid-rigging trial, NY Post reports
Deutsche Bank (DB) CFO faces internal criticism following financial reporting exposure, WSJ reports
Police arrest seven in connection to StubHub (EBAY) cyberfraud case, Re/code reports
Investors shouldn't wait too long to buy Apple (AAPL), Barron's says

SYNDICATE

Government Properties (GOV) 13.5M share Spot Secondary priced at $23.50
Immune Design (IMDZ) 5M share IPO priced at $12.00
Intersect ENT (XENT) 5M share IPO priced at $11.00
JMP Group (JMP) files $100M mixed securities shelf
NRG Yield (NYLD) 10.5M share Secondary priced at $54.00
Pfenex (PFNX) 8.33M share IPO priced at $6.00
Townsquare Media (TSQ) 8.3M share IPO priced at $11.00

• As we predicted yesterday, the "big" Gaza ceasefire lasted all of a few hours (Reuters)
• To Lift Sales, G.M. Turns to Discounts (NYT)
• Espirito Santo Family’s Swift Fall From Grace Jolts Portugal (BBG)
• Argentine Debt Feud Finds Much Fault, Few Fixes (WSJ)
• Fiat Says Ciao to Italy as Merger With Chrysler Ends Era (BBG)
• Euro zone factory growth eases in July as inflation fades away (Reuters)
• CIA concedes it spied on U.S. Senate investigators, apologizes (Reuters)
• Ukraine Reports Losses After Pro-Russian Ambush Near Malaysia Airlines Flight 17 Crash Area (WSJ)
• U.S. says India refusal on WTO deal a wrong signal (Reuters)
• Why Putin Has 2006 Flash Before His Eyes After Sanctions (BBG)
• Falling Wages in Southern EU Vex Draghi as Youth Punished (BBG)
• Congressman Cantor to resign seat early: Richmond Times-Dispatch (Reuters)
• Eastern Europe Punished in Markets After Opposing Putin (BBG)

Overnight Media Digest

WSJ

* Israel and Hamas agreed to a three-day cease fire in the Gaza conflict with the hope of forging a more lasting peace. (http://on.wsj.com/1puLbSA)

* Central Intelligence Agency officers snooped on computers used by a Senate committee investigating the CIA's interrogation program, an internal agency report has concluded; a critical finding in a bitter standoff between two government branches. (http://on.wsj.com/Xl5zMt)

* A tanker of oil from Texas has set sail for South Korea, the first unrestricted sale of unrefined American oil since the 1970s. How that $40-million shipment avoided the nearly four-decade ban on exporting U.S. crude is a tale involving two determined energy companies, loophole-seeking lawyers, and an unprecedented boom in American drilling that could create a glut of ultra-light oil. (http://on.wsj.com/1pJ3roq)

* The Sprint Corp and T-Mobile US Inc deal that has been in talks for more than six months was lurched on Thursday when France's Iliad SA entered with a buyout offer for T-Mobile, causing a clash between the telecommunications industry's titans. (http://on.wsj.com/1o8WRKT)

* The calm that pervaded financial markets for months evaporated as stocks tumbled in Europe and the United States, with the Dow industrials erasing its gains for the year after suffering its worst one-day loss since February. (http://on.wsj.com/1ob6AR0)

* Argentina's default on $29 billion in debt brought a stock market selloff and finger pointing by the Argentine government and creditors. But investors held out hope that a resolution to the crisis could be reached. (http://on.wsj.com/1lhyc2p)

* Investors retreated from risky corporate debt on Thursday, sending prices tumbling and deepening fears of an end to a long rally in U.S. junk bonds. This decline reflects fresh signs that the growth in the United States is picking up in earnest, a trend that many global bond managers expect to eventually prompt a Federal Reserve interest rate increase that would likely squeeze bond returns. (http://on.wsj.com/1s8ssgH)

* The energy boom in the United States is reflecting a noticed side effect: American oil and gas companies are paying less in federal income taxes. Energy companies are spending billions of dollars a year to drill in shale formations across the country, sending the nation's daily oil output up by almost 50 percent in just the past few years. All that spending has made drillers take advantage of incentives in the tax code for drilling and capital expenditures, deferring billions of dollars in income tax. (http://on.wsj.com/1lgFjZa)

* Alibaba Group Holding Ltd <IPO-BABA.N> is backing another California startup, announcing a $120-million investment in gaming company Kabam Inc and a partnership to publish and distribute its free-to-play mobile games. (http://on.wsj.com/1pKyUqp)

* Sony Corp sharply cut its forecast for smartphone sales, dealing a blow to the Japanese electronics maker's hopes for recovery. (http://on.wsj.com/1n98jl4)

* The Food and Drug Administration on Thursday laid out a proposed new regulatory plan to oversee potentially thousands of laboratory developed medical tests that the agency contends can be prone to errors. (http://on.wsj.com/1tAJ2IU)

FT

French telecommunications company Iliad has made a surprise offer for control of T-Mobile U.S. that values the third-largest U.S. carrier at $29.5 billion.

Companies across the eurozone bloc warned that the crisis in Russia and Ukraine is already impacting business, as the European Union's toughest sanctions against Russia since the end of the cold war sent ripples through the continent's boardrooms.

Tesla Motors Chief Executive Elon Musk unveiled plans for a massive expansion in China, with as many as a third of the U.S. electric carmaker's global network of service centres located in the country by the end of 2015.

Corporate networking site LinkedIn beat analyst expectations in its second quarter, sending its shares up as much as 12 percent in after-hours trading in New York.

French telecoms-equipment maker Alcatel Lucent intends to float part of its submarine-cables division as it aims to complete 1 billion euros ($1.34 billion) of asset sales by the end of next year.

NYT

* Kabam, a video game start-up, said on Thursday that it has received a $120 million investment from Alibaba Group Holding Ltd <IPO-BABA.N>. The new round gives Alibaba a board seat and what is likely a significant stake in Kabam, which said it is now worth more than $1 billion. (http://nyti.ms/1u5mfCj)

* Tesla Motors Inc announced on Thursday that it had an agreement with Panasonic Corp to build a large-scale battery plant in the United States. The planned factory will produce batteries for Tesla's all-electric vehicles, as well as modules for the stationary storage market. The company said it estimated that the plant and its associated supplier complex, which it is calling the Gigafactory, would employ 6,500 people by 2020. (http://nyti.ms/1puMaSP)

* Federal authorities are sounding alarms about a wide range of fraudulent schemes involving a popular prepaid money card product. Thousands of consumers have been lured into sending money through the card, called MoneyPak. For online fraudsters, the reusable green-and-white paper card that can be used to quickly reload, or transfer, hundreds of dollars in cash onto another prepaid card is often the money conduit of choice.(http://nyti.ms/1xHXNHm)

* In February, General Motors Co hit a milestone of sorts when its sales incentives, as tracked by the research firm Edmunds.com, dropped below those of its domestic rivals. But since its safety crisis began to mount in the spring, the automaker has piled on cash incentives and cheap lease deals to invigorate sales of its passenger cars, particularly the smaller models, joining what some of its competitors have been doing as well. (http://nyti.ms/1rULfy8)

* Target Corp named Brian Cornell as its new chief executive on Thursday, bringing in an outsider to lead the company for the first time as it looked to right itself. Cornell was most recently the chief executive of PepsiCo's Americas Foods unit. (http://nyti.ms/1tAELVM)

* Lenders to Puerto Rico's electric power authority are giving the beleaguered utility another two weeks before it has to make past-due payments on its lines of credit. PREPA owes money on two main credit lines - a roughly $250 million line from Citigroup Inc and a $550 million line from a syndicate of banks. (http://nyti.ms/1kaduGz)

* Iliad SA, France's fourth-biggest mobile company, said on Thursday that it had made a $15-billion bid for a majority stake in T-Mobile US Inc, a company that is roughly 60 percent bigger than it in market value. Under the terms of the deal, Iliad said it would offer $15 billion for a 56.6 percent stake in T-Mobile US. The French company said it valued the remaining stake in T-Mobile US at $40.50 a share, based on unspecific cost savings totaling $10 billion to be created from the deal. (http://nyti.ms/UECYjx)

* Shares in Synchrony Financial, the North American retail finance unit being spun off by General Electric Co , opened largely unchanged on Thursday after it raised about $2.9 billion in its initial public offering. Synchrony Financial, which handles private-label credit cards for major retailers like Gap Inc and Wal-Mart Stores Inc, ranks as the largest IPO this year in terms of money raised. (http://nyti.ms/1obvsrU)

* David Johnson, a former executive at the mortgage finance giant Fannie Mae, is joining FTI Consulting Inc as its chief financial officer. He will take over the role on Aug.25. (http://nyti.ms/1s9rNfJ)

* Four years after federal regulators passed new rules aimed at curbing overdraft fees, the Consumer Financial Protection Bureau is still finding problems with the high fees that banks charge customers when they overdraw their accounts. In a new report released, the agency said overdraft fees continue to pile up for many bank customers, particularly among young people. (http://nyti.ms/WQzA6R)

* The Food and Drug Administration announced on Thursday that it would start regulating medical laboratory testing, saying that tests used to make important treatment decisions must be vetted and validated before they go into use. (http://nyti.ms/1ADV4TH)

* Microsoft Corp has suffered a setback in its efforts to block United States federal prosecutors from seizing a Microsoft customer's data that is stored overseas. Judge Loretta Preska of the United States District Court for the Southern District of New York on Thursday upheld a magistrate judge's ruling that the company must turn over the customer's emails held in a Microsoft data center in Ireland. Microsoft plans to appeal the ruling. (http://nyti.ms/UEEJNO)

Canada

THE GLOBE AND MAIL

* China's ambassador to Canada, Luo Zhaohui, has said if Ottawa has evidence that Beijing is responsible for a cyberattack on a top Canadian research body, it should turn it over to the Chinese government.

The Canadian government this week said computers at the National Research Council were breached, and pointed to "a highly sophisticated Chinese state-sponsored actor." (http://bit.ly/1og6pzo)

* The Canadian government has denied a request from freedom-of-expression charity, pen Canada, for auditors' guidelines on political activity, saying revealing how the Canada Revenue Agency conducts audits could hamper their work. (http://bit.ly/1s9bGOp)

In the business section:

* Wind Mobile SA's foreign owner has put a C$300 million price tag on the startup wireless carrier, but with a number of players circling the asset, the ultimate outcome may depend on Canada's efforts to encourage the consolidation of new entrants in the cellular industry. Quebecor Inc said Thursday it is still in talks over financial and strategic arrangements that could culminate in it playing a role in a consolidated fourth national wireless carrier. (http://bit.ly/1qwym9e)

NATIONAL POST

* Prime Minister Stephen Harper is reiterating his government's hard line against Hamas, saying it is solely responsible for the death and destruction in Gaza. Harper said while no one likes to see the suffering and loss that's occurring in the Middle East, Hamas is to blame. (http://bit.ly/1xJhpuM)

* Despite attempts by Justin Trudeau-led federal Liberals to win back ethnic voters, the Conservatives continue to raise more money from Chinese-Canadians than any other party, new fundraising data suggest. (http://bit.ly/1uO008c)

FINANCIAL POST

* Wal-Mart Stores Inc's Canadian business's new Chief Executive Dirk Van den Berghe's hiring could be the surest sign yet that the biggest retailer in the world wants to get smaller in Canada. Finding space for its stores in the urban markets of Canada's major cities has been a stumbling block for the country's largest mass merchant, which has been rapidly expanding its grocery business to all of its big-box stores across Canada. (http://bit.ly/1pLopDj)

* Quebecor Inc CEO Pierre Dion reiterated his demand that Canada bring in new rules to force down roaming rates before his company consider becoming Canada's fourth wireless carrier, but he also cautioned that even if Quebecor gets what it wants, it might not take the challenge. (http://bit.ly/1m4qkS9)

Britain

The Times

SHELL CITES 'ACT OF GOD' AND BREAKS OFF DRILLING IN STRIFE-TORN EAST UKRAINE

Royal Dutch Shell has mothballed a multibillion-dollar shale gas joint venture in eastern Ukraine amid the escalating conflict with Russia. (http://thetim.es/1qukexc)

WATCHDOG'S PROFIT CLAIMS INFLATED, SAYS CENTRICA

Centrica, the owner of British Gas, has attacked the energy industry regulator for making "false" accusations of profiteering in an escalating rift over the size of household bills for electricity and gas. (http://thetim.es/1kpiesp)

BALFOUR ACCUSES CARILLION AS MERGER COLLAPSES OVER U.S. SALE

Balfour Beatty has ended discussions for a proposed 3 billion pound ($5.07 billion) merger with Carillion and angrily accused its construction industry rival of scuppering the proposed tie-up. (http://thetim.es/1oaqZWk)

The Guardian

SCANDALS DENT PROFITS AT LLOYDS AS PPI BILL RISES 600 MLN STG

Profits at Lloyds Banking Group more than halved in the first six months of the year as its bill for the payment protection insurance scandal increased by 600 million pounds and it paid out penalties for rigging interest rates. (http://bit.ly/1lfitRF)

PADDY POWER ADMITS PERSONAL DETAILS OF 649,000 CUSTOMERS WERE STOLEN IN 2010

Irish bookmaker Paddy Power has revealed its website was hacked in 2010 and personal details of more than 649,000 customers stolen. (http://bit.ly/1xHiWkY)

The Telegraph

SANTANDER: BANK CLAWBACK RULES THREATEN UK

The head of Santander UK, Britain's fifth-largest high street bank, has said that regulations to introduce seven-year clawbacks on bankers' bonuses could threaten London's position as a leading financial centre. (http://bit.ly/1u5197e)

BT PROFITS BOOSTED BY FIBRE AND FOOTBALL

Strong demand for faster internet access helped BT deliver a 7 percent increase in profits for the first quarter, as the company also continued to strip costs out of its struggling IT services division. (http://bit.ly/1qOkr2Y)

Sky News

FORMER LIBOR BOSS QUITS TOP UK POST AT UBS

Mark Yallop, who played a key role in the administration of the scandal-hit Libor benchmark, will leave his role as UBS's UK chief executive at the end of September. (http://bit.ly/1pIH5DH)

The Independent

ROBERT TCHENGUIZ GETS 1.5 MLN STG IN DAMAGES AFTER BOTCHED SFO INVESTIGATION

Britain's Serious Fraud Office has agreed to pay property tycoon Robert Tchenguiz 1.5 million pounds in damages in one of the most embarrassing episodes to hit the agency following a botched investigation. (http://ind.pn/1qOj8kQ)

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Nonfarm payrolls for July at 8:30--consensus 233K
Unemployment rate for July at 8:30--consensus 6.1%
Personal income for June at 8:30--consensus up 0.4%
Personal spending for June at 8:30--consensus up 0.4%
Markit final manufacturing PMI for July at 9:45--consensus 56.5
U. of Michigan consumer sentiment for July at 9:55--consensus 81.5

ANALYST RESEARCH

Upgrades

ArcBest (ARCB) upgraded to Outperform from Market Perform at Cowen
Barclays (BCS) upgraded to Hold from Sell at Berenberg
DeVry (DV) upgraded to Buy from Hold at Stifel
Expedia (EXPE) upgraded to Outperform from Market Perform at Raymond James
Invesco (IVZ) upgraded to Buy from Hold at Deutsche Bank
Iridium (IRDM) upgraded to Buy from Fair Value at CRT Capital
Marathon Petroleum (MPC) upgraded at Credit Suisse
Marathon Petroleum (MPC) upgraded to Outperform from Neutral at Credit Suisse
OceanFirst upgraded to Outperform from Market Perform at Keefe Bruyette
PG&E (PCG) upgraded to Outperform from Neutral at Credit Suisse
Pharmacyclics (PCYC) upgraded to Buy from Hold at WallachBeth
Progressive (PGR) upgraded to Market Perform from Underperform at Keefe Bruyette
Quanta Services (PWR) upgraded to Outperform from Neutral at RW Baird
Quintiles (Q) upgraded to Buy from Neutral at SunTrust
Red Hat (RHT) upgraded to Positive from Neutral at Susquehanna
Royal Dutch Shell (RDS.A) upgraded to Buy from Hold at Jefferies
Royal Dutch Shell (RDS.A) upgraded to Buy from Hold at Societe Generale
Selective Insurance (SIGI) upgraded to Outperform from Sector Perform at RBC Capital
Signature Bank (SBNY) upgraded to Strong Buy from Outperform at Raymond James
Strayer (STRA) upgraded to Neutral from Underweight at Piper Jaffray
Strayer (STRA) upgraded to Outperform from Market Perform at BMO Capital
Strayer (STRA) upgraded to Outperform from Market Perform at Wells Fargo
SunPower (SPWR) upgraded to Buy from Hold at Brean Capital
Synalloy (SYNL) upgraded to Buy from Neutral at Sterne Agee
Tableau (DATA) upgraded to Buy from Neutral at Mizuho

Downgrades

3D Systems (DDD) downgraded to Neutral from Buy at Citigroup
3D Systems (DDD) downgraded to Neutral from Overweight at Piper Jaffray
Ambev (ABEV) downgraded to Equal Weight from Overweight at Barclays
Bed Bath & Beyond (BBBY) downgraded to Perform from Outperform at Oppenheimer
Boyd Gaming (BYD) downgraded to Neutral from Outperform at Credit Suisse
Campus Crest (CCG) downgraded to Hold from Buy at MLV & Co.
Education Realty (EDR) downgraded to Neutral from Buy at UBS
EnPro (NPO) downgraded to Hold from Buy at KeyBanc
Generac (GNRC) downgraded to Hold from Buy at Canaccord
Hyatt Hotels (H) downgraded to Underperform from Neutral at Credit Suisse
Jive Software (JIVE) downgraded to Neutral from Outperform at Credit Suisse
Montpelier Re (MRH) downgraded to Hold from Buy at Deutsche Bank
Ocwen Financial (OCN) downgraded to Neutral from Buy at Citigroup
Randgold Resources (GOLD) downgraded to Neutral from Buy at UBS
Randgold Resources (GOLD) downgraded to Neutral from Buy at UBS
RenaissanceRe (RNR) downgraded to Equal Weight from Overweight at Morgan Stanley
ServiceSource (SREV) downgraded to Market Perform from Outperform at JMP Securities
Web.com (WWWW) downgraded to Neutral from Buy at SunTrust

Initiations

Arista Networks (ANET) initiated with a Neutral at Citigroup
Casella Waste (CWST) initiated with a Hold at Stifel
Finish Line (FINL) initiated with a Buy at Jefferies
PTC Therapeutics (PTCT) initiated with an Outperform at Oppenheimer
Progressive Waste (BIN) initiated with a Hold at Stifel
Prosensa (RNA) initiated with an Outperform at Oppenheimer
Sangamo (SGMO) initiated with an Overweight at JPMorgan
Sarepta (SRPT) initiated with an Outperform at Oppenheimer

COMPANY NEWS

Tesla (TSLA) announced that it broke ground on a possible Gigafactory location in Reno, Nevada. The company also forecast 100,000 unit run rate by end of 2015, split between Model S, X
Sanofi (SNY) raised its stake in Regeneron (REGN) to 22.5% from 21.6%
Web.com (WWWW) acquired U.K. online directory company Scoot
LinkedIn (LNKD) said cumulative members grew 32% in Q2 to 313M
Array BioPharma (ARRY) received orphan status for ovarian cancer treatment
Genesee & Wyoming (GWR) said North American business outlook favorable in 2014

EARNINGS

Companies that beat consensus earnings expectations last night and today include:

Tesla (TSLA), LinkedIn (LNKD), Expedia (EXPE), ImmunoGen (IMGN), Catamaran (CTRX), Calpine (CPN), Tesco (TESO), Genesee & Wyoming (GWR), Gentherm (THRM), Hilton (HLT), Church & Dwight (CHD), Arena Pharmaceuticals (ARNA), Oil States (OIS), Santander Chile (BSAC), Nevsun Resources (NSU), Empire District Electric (EDE), Territorial Bancorp (TBNK), Ashland (ASH), SurModics (SRDX), Nektar (NKTR), AXT, Inc. (AXTI), BioTelemetry (BEAT), Community Health (CYH), Autobytel (ABTL), Sierra Wireless (SWIR), Planar Systems (PLNR), MaxLinear (MXL), PMC-Sierra (PMCS), Fluidigm (FLDM), Microchip Technology (MCHP), DaVita (DVA), Arch Capital (ACGL), Jones Lang LaSalle (JLL), Jive Software (JIVE), Exelixis (EXEL), Imperva (IMPV), Electro Scientific (ESIO), Seattle Genetics (SGEN), Ellie Mae (ELLI), Standard Pacific (SPF), Brooks Automation (BRKS), ON Semiconductor (ONNN), Fluor (FLR), SunPower (SPWR), Rockwell Medical (RMTI), Omnicell (OMCL), Skullcandy (SKUL), GoPro (GPRO), Genpact (G), Quaker Chemical (KWR), DigitalGlobe (DGI), Tableau (DATA), Trecora Resources (TREC), Green Dot (GDOT), ARRIS (ARRS), Xencor (XNCR), GlycoMimetics (GLYC), Trulia (TRLA), Outerwall (OUTR), Edison International (EIX), Affymetrix (AFFX), DXP Enterprises (DXPE)

Companies that missed consensus earnings expectations include:

PBF Energy (PBF), Shenandoah (SHEN), Global Power Equipment (GLPW), A.V. Homes (AVHI), Cheniere Energy Partners LP (CQP), LRR Energy (LRE), Mercer (MERC), ARMOUR Residential (ARR), Cheniere Energy (LNG), GFI Group (GFIG), Idenix (IDIX), North Valley Banc (NOVB), Immersion (IMMR), Saul Centers (BFS), YRC Worldwide (YRCW), Alphatec (ATEC), ServiceSource (SREV), American Vanguard (AVD), Vocera (VCRA), Northeast Utilities (NU), Synaptics (SYNA), Bill Barrett (BBG), Computer Programs (CPSI), ResMed (RMD), STAAR Surgical (STAA), Live Nation (LYV), Westport (WPRT), HFF Inc. (HF), Boyd Gaming (BYD), Kodiak Oil & Gas (KOG), Bravo Brio Restaurant (BBRG), Matson (MATX), Pharmacyclics (PCYC), FleetCor (FLT), Cerus (CERS), Maxwell (MXWL), Einstein Noah (BAGL)

Companies that matched consensus earnings expectations include:

Exelis (XLS), Eldorado Gold (EGO), Cavco Industries (CVCO), Erie Indemnity (ERIE), SS&C Technologies (SSNC), Southwestern Energy (SWN), MRC Global (MRC), Natural Grocers (NGVC), Ikanos (IKAN), Callidus Software (CALD), Hansen Medical (HNSN), Web.com (WWWW), PerkinElmer (PKI), Addus HomeCare (ADUS), Epiq Systems (EPIQ), Western Union (WU)

NEWSPAPERS/WEBSITES

Analyst says Apple (AAPL) may ship just 3M iWatch units in 2014, Apple Insider reports
Sources say HSBC (HSBC), BNP Paribas (BNPQY) to finance Iliad's (ILIAF) T-Mobile (TMUS) bid, Reuters reports
General Motors (GM) has offered many discounts in recent months, NY Times says
Alibaba (BABA) makes strategic investment in mobile game developer Kabam, WSJ reports
SeaWorld (SEAS), Southwest Air (LUV) terminate 26-year marketing relationship, WSJ reports
Ford's (F) executive chairman says CEO transition "smooth," Detroit News reports

SYNDICATE

Athlon Energy (ATHL) 12.5M share Secondary priced at $46.25
Bacterin (BONE) files to sell common stock and warrants
Baxano Surgical (BAXS) files $26.28M mixed securities shelf
FCB Financial (FCB) 7.52M share IPO priced at $22.00
Hill International (HIL) 8.5M share Secondary priced at $4.25
Loxo Oncology (LOXO) 5.262M share IPO priced at $13.00
Mobileye (MBLY) 35.6M share IPO priced at $25.00
RGS Energy (RGSE) files to sell 4.2M shares for selling stockholders
VTTI Energy (VTTI) 17.5M share IPO priced at $21.00

• Maliki digs in as U.S. pushes for new Iraq government (Reuters)
• Ukraine's forces say close to taking rebel-held Donetsk (Reuters)
• Anger Over Michael Brown Shooting Leads to Looting (WSJ)
• German Economy Backbone Bending From Lost Russia Sales (BBG)
• Kinder Morgan to Consolidate Empire (WSJ)
• Early Failure to Detect Gaza Tunnel Network Triggers Recriminations in Israel (WSJ)
• You’ll never guess how much BuzzFeed raised from Horowitz (FT)
• The dumb money is now chasing Chinese oligarchs: Norway’s Wealth Fund Buys $576 Million of Mayfair Area (BBG)
• Clinical trial to start soon on GSK Ebola vaccine (Reuters)
• No drone skeet shooting any time soon (WSJ)
• Erdogan Extends Rule to 2019 With Vision for a New Turkey (BBG)
• Blackstone: from US landlord to US shalelord, nears Deal For Shell's 50% Haynesville Shale Stake (WSJ)
• GM must face suit claiming it covered up ignition-switch defect (Reuters)
• How Bond Traders Profited Off U.S. Wage of $24.45 an Hour (BBG)
• U.S. to monitor South China Sea, talks with Australia on regional defense (Reuters)

Overnight Media Digest

WSJ

* Islamist extremists who have overrun swaths of Iraq made a rare retreat in an area hit by U.S. air strikes and gave up some territory they had won from Kurdish forces, in an early sign of impact from the three-day-old American campaign. (http://on.wsj.com/1kvlfam)

* Israel's early failure to detect the vast Hamas tunnel network that its forces destroyed in Gaza is triggering a wave of recriminations within the country's security and political establishment. (http://on.wsj.com/XV52Bh)

* Alaska, the state which staked most of its economy on energy in the 1970s after oil was found on the North Slope, is now competing with, and often losing out to, places with hotter oil fields-especially North Dakota. More people left Alaska than settled in the state between 2012 and 2013, while North Dakota added residents, according to state and federal census data. (http://on.wsj.com/1vw7n4B)

* Kinder Morgan Inc is consolidating its vast oil-and-gas pipeline empire into a single company amid investor worries about the enterprises' growth prospects. (http://on.wsj.com/1uEAX3J)

* Blackstone Group LP is nearing a deal to buy Royal Dutch Shell PLC's half-interest in the Haynesville Shale, a huge Louisiana gas field, in a deal that could value the stake at more than $1 billion. (http://on.wsj.com/1A6y3rf)

* Widespread use of commercial drones is likely to take significantly longer than many proponents of the budding industry anticipate, according to U.S. and Canadian aviation regulators. (http://on.wsj.com/1oVnkfs)

* U.S. factories that were idled during the recession are now humming with activity. Office and apartment buildings have less empty space. Unemployment is falling, while wages and benefits are growing slowly. However, conditions aren't quite back to what was normal before the 2008 financial crisis. (http://on.wsj.com/1oVntPP)

* A summer of geopolitical unrest is rattling markets, but despite a recent downturn, investors' optimistic view of U.S. stocks has been largely unscathed. A wave of risk aversion has punished stocks and fueled the largest-ever retreat from junk bonds. Investors are contending with violence in Ukraine, Iraq and the Gaza Strip, along with news that Italy faces its third recession since 2008 and Germany's industrial production is slowing. Yet many fund managers say that unless the unrest increases and threatens the global growth outlook, the case for buying U.S. stocks appears stronger than that for bonds and many other assets. (http://on.wsj.com/1vw8v8d)

* The largest U.S. public pension plan is considering a dramatic retreat from some riskier investments, as it tries to simplify its $295 billion in holdings and better protect against losses during the next market downturn, according to people familiar with the matter. California Public Employees' Retirement System is weighing whether to exit or substantially reduce bets on commodities, actively managed company stocks and hedge funds, the people said. (http://on.wsj.com/1plYNRg)

* Citigroup Inc and Swiss-based trader Mercuria Energy Group are battling in a London court over payments relating to metals-backed financing arrangements in China valued at over $270 million. The case between Mercuria and Citigroup is one of several brought by companies scrambling to limit their exposure to potential losses after the Chinese government launched an investigation into allegations of loan fraud at the ports. (http://on.wsj.com/1A6zkyD)

* Hachette Book Group said Amazon.com Inc is motivated by profits and market share at the expense of authors and bookstores, as the companies' contentious contract talks over e-book pricing continues. (http://on.wsj.com/1kvmSoq)

* At least 2.2 million people have already watched "The Expendables 3." The problem for the movie's distributor, Lions Gate Entertainment Corp, is that its big-budget action movie doesn't open until Friday. (http://on.wsj.com/1A6m7G2)

FT

Hedge fund firm Brevan Howard is battling a court case filed by former trader Christopher Rokos, who is asking for his five-year non-compete to be overturned, so that he can launch his own hedge fund.

The tensions between Russia and the west over Ukraine will not derail Austrian energy group OMV AG's plans to extend Gazprom OAO's South Stream gas pipeline from the Hungarian border to Vienna, and any delays would be manageable, Chief Executive Gerhard Roiss said.

South Africa's central bank has placed African Bank Investments under curatorship, as it announces a rescue plan for the lender of unsecured loans that involves a capital injection of nearly a $1 billion.

High-frequency traders in London are increasingly quitting investment banks in favour of specialised trading firms, as they try to escape tighter restrictions on pay and the looming threat of new regulations banning proprietary trading.

Proposals under consideration by the International Accounting Standards Board (IASB) to limit how pension surpluses can be booked, if enforced, could result in more than 25 billion pounds ($42 billion) being wiped off the balance sheets of UK's biggest companies.

The criminal investigation into former traders of the Royal Bank of Scotland Group Plc over Libor manipulation could spill over into next year, with the Serious Fraud Office requesting UK's financial regulator to postpone publishing its civil findings against at least two of the traders.

NYT

* Buzzfeed, the viral media site will use a $50 million investment to diversify its content, expand its video arm and create an in-house incubator for new technology. (http://nyti.ms/1sEgJWf)

* It is not clear to the executives of Microsoft Corp how the Chinese authorities believe that they violated the country's antimonopoly law. For months, Microsoft was in private discussions over competition issues with the State Administration of Industry and Commerce. (http://nyti.ms/1sM20dW)

* Pipeline group Kinder Morgan Inc, will acquire its three associated companies and re-form as a traditional corporation worth $140 billion. (http://nyti.ms/1A6xo9l)

* Hedge fund investors, furious at having their bond holdings in Portugal's Banco Espírito Santo written down to zero, are weighing legal action against Portuguese regulators. (http://nyti.ms/1oo6Ygv)

* SafeNet is selling itself for $890 million to Dutch digital security company Gemalto NV. The deal shows the limitations of a possible ban on inversions. (http://nyti.ms/1oCwsB2)

* The Royal Bank of Scotland Group PLC is revamping its controversial unit that assists businesses facing serious financial difficulties, according to a person briefed on the matter. The unit, the Global Restructuring Group, will be disbanded and replaced by a new restructuring group to be headed by Laura Barlow, who joined the bank in 2009, said the person. (http://nyti.ms/XUVeXQ)

China

CHINA SECURITIES JOURNAL

- China has made its first effort to coordinate property registration in urban and rural regions to help protect farmers' rights and improve the government's efficiency. Such registration has been divided because of administrative turf.

- China's monetary policy is not likely to be further loosened in the second half of this year compared with the first half as the government's targeted easing has checked the slowdown in the country's economic growth, the newspaper said in a commentary.

SHANGHAI SECURITIES NEWS

- Zhengzhou became the latest Chinese city to lift property controls to support a cooling market and help safeguard the country's economic growth.

- China has nearly completed a clean-up of regional equity trading venues and regulators are set to issue new regulations to govern local stock trading practices before the end of this year.

- China is poised to hold its first-ever commodity futures innovations conference in September.

CHINA DAILY

- China's police plan to put greater focus on investigating emigrants who have obtained citizenship abroad but have not cancelled their Chinese household registration, as part of government efforts against graft.

PEOPLE'S DAILY

- The disciplinary commission of the ruling Communist Party of China has opened a special web page for citizens to inform about officials using public funds to send moon cakes as gifts during the forthcoming Mid-Autumn Festival, in the party's latest move to fight against corruption.

Russia

VEDOMOSTI

www.vedomosti.ru

- Transit of Russian oil and gas to the European Union could be affected by a bill Ukrainian parliamentarians are planning to pass on August 12. The new legislation is aimed at halting the activity of 65 Russian companies operating in the country.

- US oil major ExxonMobil and Rosneft started joint drilling of a well on Saturday in an offshore oilfield of Russia's Kara Sea in the Arctic.

- Sales of new cars and light commercial vehicles in Russia fell by almost 23 percent in July and reached the level of 2010.

- Russia will boost the production of Tupolev-204SM medium-range airliners to compensate for the problems of Dobrolet discount airline hit by sanctions.

- Russia's defence ministry has dismissed accusations of planning to use troops to accompany humanitarian aid to Ukrainian civilians in the zone of military activity.

KOMMERSANT

www.kommersant.ru

- Russia's businessmen are proposing that the Finance Ministry raise profit tax to 9 percent from the current 5 percent, for subsidiaries in Cyprus, the Netherlands, Switzerland and Luxembourg of Russian companies outside the energy and banking sectors, which could increase tax revenues from these companies by 70-80 percent.

- Western sanctions are threatening Rosneft's plan to create its own oil trading business, the daily says, after Italy's Saras halted negotiations on the formation of a trading joint venture after the Russian state oil major was hit by the sanctions.

IZVESTIA

www.izvestia.ru

- Four Russian parliamentarians from the Just Russia party could face a ban on leaving Russia because of unpaid taxes, the daily says, adding that their joint tax debt has reached 10.4 billion roubles.

Britain

The Times

PRESSURE ON BALFOUR TO RESUME DEAL TALKS

Balfour Beatty Plc will reveal this week that it is still hoping to sell its Parsons Brinckerhoff subsidiary as it tries to convince investors that it can survive without Carillion Plc.

MONARCH HAS RYANAIR AND EASYJET IN ITS SIGHTS

A wide-ranging review of the travel group behind Monarch may result in a sale of the budget airline. The strategic review is exploring the budget carrier's ownership, financing and operations as it seeks to mount a challenge to easyJet Plc and Ryanair Holdings Plc.

The Guardian

APPEAL COURT BATTLE BREWS OVER GREENE KING TAX AVOIDANCE SCHEME

Greene King Plc is to take its long-running battle to prove the legality of a controversial tax avoidance scheme to the court of appeal despite two defeats in the lower tax courts and condemnation from a Treasury minister and other MPs.

The Telegraph

ALEX SALMOND ADMITS THERE IS NO PLAN B AS HE INSIST SCOTLAND WILL KEEP POUND

Alex Salmond has ignored opinion polls and growing signs of discontent inside his own party by insisting that an independent Scotland would keep the pound "come what may".

PUNCH DIRECTOR CLOSES IN ON RESTRUCTURING WINDFALL

Steve Dando, Punch Taverns Plc's finance director, is in line for a bonus worth up to 275,000 pounds as a reward for concluding the pubs group's tortuous debt restructuring, which will enter the final furlong this week when proposals for a debt-for-equity swap are formally launched.

CROWN ESTATE FENDS OFF FOREIGN BIDDERS TO BUY SLICE OF MAYFAIR FROM CHURCH OF ENGLAND

The Queen's property company has teamed up to buy a 64.2 percent slice of prime Mayfair estate, it was announced on Sunday. The deal saw the Crown Estate partner with Norway's sovereign wealth fund to add a stake in nearly 400-year-old Pollen Estate to its portfolio, a plot of land that had belong to the Church of England.

Sky News

HUNTSWORTH BOSS TO STEP DOWN AFTER PAY REVOLT

Conservative peer Lord Chadlington who heads public relations groups Huntsworth Plc is to step down weeks after a major revolt by shareholders over his pay package.

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

No significant domestic economic reports scheduled for today.

ANALYST RESEARCH

Upgrades

Achillion (ACHN) upgraded to Outperform from Market Perform at Wells Fargo
Achillion (ACHN) upgraded to Overweight from Neutral at Piper Jaffray
Central European Media (CETV) upgraded to Neutral from Sell at Goldman
Chuy's (CHUY) upgraded to Outperform from Market Perform at Raymond James
Frank's International (FI) upgraded to Neutral from Sell at Goldman
GNC Holdings (GNC) upgraded to Outperform from Neutral at Credit Suisse
Gulfport Energy (GPOR) upgraded to Buy from Hold at Stifel
Hanger  (HGR) upgraded to Buy from Neutral at SunTrust
Huntington Ingalls (HII) upgraded to Buy from Neutral at UBS
Hyatt Hotels (H) upgraded to Buy from Hold at Stifel
PepsiCo (PEP) upgraded to Buy from Neutral at UBS
Southwest Gas (SWX) upgraded to Buy from Hold at Brean Capital
Tesla (TSLA) upgraded to Buy from Hold at Deutsche Bank

Downgrades

2U (TWOU) downgraded to Neutral from Buy at Goldman
Crestwood Equity (CEQP) downgraded to Market Perform from Outperform at Wells Fargo
Fairway Group (FWM) downgraded to Market Perform from Outperform at William Blair
King Digital (KING) downgraded to Sector Perform from Outperform at Pacific Crest
Oshkosh (OSK) downgraded to Neutral from Overweight at JPMorgan
Wal-Mart (WMT) downgraded to Hold from Buy at Jefferies

Initiations

CareDx (CDNA) initiated with a Buy at Mizuho
CareDx (CDNA) initiated with an Overweight at Piper Jaffray
Mavenir Systems (MVNR) initiated with an Outperform at Cowen
Roka Bioscience (ROKA) initiated with an Outperform at Leerink
TRI Pointe Homes (TPH) resumed with a Buy at Citigroup
iRadimed (IRMD) initiated with a Buy at Roth Capital

COMPANY NEWS

Kinder Morgan (KMI), Kinder Morgan Energy Partners (KMP), Kinder Morgan Management (KMR) and El Paso Pipeline Partners (EPB) announced that KMI will acquire all of the outstanding equity securities of KMP, KMR and EPB. KMP unitholders will receive 2.1931 KMI shares and $10.77 in cash for each KMP unit
Sanofi (SNY), MannKind (MNKD) announced a global licensing agreement for Afrezza
Amazon (AMZN) urged customers to express opinions on e-book prices with Hachette
Cubist (CBST) issued a voluntary nationwide recall of nine lots of CUBICIN

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Warren Resources (WRES), Motorcar Parts (MPAA), Hawaiian Electric (HE)

Companies that missed consensus earnings expectations include:
Nordic American Tankers (NAT), Pembina Pipeline (PBA)

Companies that matched consensus earnings expectations include:
Sterling Construction (STRL), Magic Software (MGIC)

NEWSPAPERS/WEBSITES

Blackstone (BX) nears deal to buy Shell's (RDS.A) stake in Haynesville shale, WSJ says
Amazon (AMZN) stops preorders of some Disney (DIS) movie titles, WSJ reports
Boeing (BA) 787 production snags re-emerge at assembly plant, Reuters reports
HSBC (HSBC) pledges to retain private bank as a standalone division, FT reports
Snapchat's fundraising talks with Alibaba (BABA) are over, Bloomberg says
RBS (RBS) plans to sell international arm of Coutts, Reuters reports
U.S. judge rejects Apple (AAPL), Google (GOOG) antitrust hiring accord, Bloomberg reports (INTC, ADBE)
Zillow (Z) could fall by 50% after Trulia (TRLA) deal, Barron's says
Procter & Gamble (PG) could return 10% in six months, Barron's says
Intel (INTC) should see more gains, Barron's says

SYNDICATE

Cerus (CERS) files $250M mixed securities shelf
China Jo-Jo Drugstore (CJJD) files $30M mixed securities shelf
Kandi Technologies (KNDI) files to sell 1.43M shares of common stock for holders
MoSys (MOSY) files $50M mixed securities shelf
TOP Ships (TOPS) requests withdrawal of registration statement
Zoe's Kitchen (ZOES) files to sell 4M shares of common stock

• Yellen Dashboard Warning Light Glows as Millions Work Part Time (BBG)
• More US drones boosting global GDP: Unidentified war planes, explosions heard in Libyan capital (Reuters)
• London Home Asking Prices Plunge Most in More Than Six Years (BBG)
• No Fed fireworks, but plenty of clues, expected at Jackson Hole (Reuters)
• Kurdish, Iraqi forces in control of Mosul dam (Reuters)
• China Pushes Cleanup of Banks (WSJ)
• Russia Widens Ruble Trading Band in Move Away From Managed Rate (BBG)
• Dollar General Makes $9.7 Billion Family Dollar Counterbid (BBG)
• Carney - Rate Hike before Pay Recovers (Times)
• Autopsy finds unarmed teen killed by police was shot six times (NYT)
• Bull Market Waning as Barclays Sees 1% Gain for S&P 500 (BBG)
• Credit Suisse Caught Up in Espírito Santo Mess (WSJ)
• White House meets with big biz on immigration (Politico)
• Don’t Hike Alone Is Jackson Hole Bear Warning for Central Banks (BBG)
• WikiLeaks' Julian Assange hopes to exit London embassy if UK lets him  (Reuters)
• Big Investors Snap Up Junk Bonds (WSJ)
• Ex-SAC Executive Kumin's Hedge-Fund Firm Gets Leucadia Investment (WSJ)

Overnight Media Digest

WSJ

* U.S. jets, drones and bombers pounded Sunni insurgent positions on Sunday to ease the siege of the strategically vital Mosul Dam, as Washington and its Kurdish allies turned up pressure on the radical group Islamic State. (on.wsj.com/1BrVg8W)

* A march protesting the shooting death of an unarmed 18-year-old black man by a white officer here erupted in chaos Sunday night when police forced back demonstrators in a cloud of smoke. The retreat by marchers set off widespread vandalism and shots were fired, but it wasn't known by whom. Several storefront windows were shattered along West Florissant Avenue, a main thoroughfare in Ferguson. (on.wsj.com/1tdPwLp)

* China denied on Monday that a spate of recent antitrust probes into foreign companies could be responsible for falling levels of investment in the country, after data showed that foreign direct investment in China fell 17 percent in July compared with a year earlier. (on.wsj.com/1uL9EYg)

* Sonic Automotive Inc will open a chain of preowned-vehicle stores hoping to move on the turf of used-car retailer CarMax Inc. Sonic on Monday will announce the creation of EchoPark stores, with the first dealership opening in Denver, a few miles from a CarMax store. (on.wsj.com/VycKzu)

* Across the United States, small-business lending has been stuck in a slow, grinding recovery behind most other types of business and consumer loans. At the end of the first quarter, banks held $585 billion in loans to small businesses, up 1 percent from last September but still 18 percent less than the peak of $711 billion in 2008, according to the Federal Deposit Insurance Corp. (on.wsj.com/1o3T7pP)

* Many economists fear the U.S. Federal Reserve will wait too long before raising interest rates, but officials believe markets and economic indicators are not signaling an economy near overheating. (on.wsj.com/1oIeiDV)

* Institutions are taking advantage of a recent slide in high-yield bonds' price triggered by small investors' selling-figuring the bonds are still a good bet as the economy expands. (on.wsj.com/1kN0g2Q)

* Former SAC Capital Advisors LP executive Solomon Kumin has secured a $400 million investment from Leucadia National Corp for his startup hedge-fund firm, according to people familiar with the recent developments. (on.wsj.com/1mab1Yy)

* Credit Suisse Group AG helped sell billions of dollars of securities that ultimately played a role in toppling Portugal's second-largest bank. The Swiss bank was responsible for putting together securities that were issued by offshore investment vehicles and then sold to retail customers of Portugal's Banco Espirito Santo SA. (on.wsj.com/1rhvsKC)

* As the Federal Communications Commission reviews Comcast Corp's proposed acquisition of Time Warner Cable Inc one issue it has to decide is whether to allow Comcast to continue TWC's long-standing arrangement to handle programming and technology acquisitions for the sixth-biggest cable operator, Bright House Networks. (on.wsj.com/1uL8n3i)

* PricewaterhouseCoopers will pay $25 million and be banned for two years from some consulting work to settle New York state regulators' allegations that the accounting firm mishandled its work for Bank of Tokyo-Mitsubishi UFJ. The New York State Department of Financial Services alleges that PwC watered down an anti-money-laundering report it did for the Japanese bank that was submitted to regulators. (on.wsj.com/1mZTaUf)

* The Justice Department on Friday filed additional charges against FedEx Corp, accusing it of conspiracy to launder money, in connection with its prescription-drug case against the package-delivery concern. (on.wsj.com/1vZrico)

FT

Some Wall Street banks are drawing up preliminary plans that include moving some of their London-based operations to Ireland to deal with the possible scenario of Britain leaving the European Union.

Bank of England Governor Mark Carney said he will not necessarily wait for real wages to turn positive before raising interest rates.

European banks are expected to borrow about 250 billion euros ($334.75 billion) in cheap four-year money from the European Central Bank in September and December, according to projections by Morgan Stanley.

Shareholders in BHP Billiton and Glencore, two of the world's largest mining companies, could hear this week when surplus capital will be returned to them, in what would mark a milestone in the mining sector's recovery.

A British government report on Egypt's Muslim Brotherhood has been delayed as ministers and officials disagree over its findings.

Private equity firms Blackstone and TPG are close to buying the UK subprime mortgage lender Kensington from Investec Ltd, the Anglo-South African financial services group.

NYT

* PricewaterhouseCoopers has agreed to pay a $25 million penalty imposed by the New York State's financial regulator, taking aim at the consulting firm for watering down a report about one of the world's biggest banks, Bank of Tokyo-Mitsubishi UFJ. The settlement also includes prevention of one of its consulting units from taking on certain assignments from New York-regulated banks for two years.(http://nyti.ms/YmBhtn)

* More than 1,000 writers from Germany, Austria and Switzerland have united to vent their frustration over the tactics Amazon.com Inc is using against the Bonnier Group and the authors who are published under its name. (http://nyti.ms/1o3Lsrz)

* Companies like Google Inc, Facebook Inc and Cisco Systems Inc are employing unorthodox criteria - say, whether a product is used daily, like a toothbrush - to size up their deal targets, and they are handling most acquisitions internally instead of relying on Wall Street bankers. (http://nyti.ms/YmZsaZ)

* The "Ice Bucket Challenge," a campaign to raise money to fight Lou Gehrig's disease, has caught fire on social media, with celebrities drenching themselves in ice water. (http://nyti.ms/1pVpXgQ)

Canada

THE GLOBE AND MAIL

* The British Columbia government says an independent investigation into the Mount Polley spill is needed, and the province is indicating there could also be new inspections at other mines. It said the communities in the affected areas, First Nations, industry and other British Columbians "deserve to know in a clear and timely way what happened and what can be done to ensure such incidents never happen again." (http://bit.ly/1pEfwzc)

* About 200 kilometres before an ill-fated oil train was left idling on the main track near Lac-Megantic, Quebec, Transport Canada conducted a routine inspection and allowed it to proceed. The inspector didn't report any concerns about the engine in the train's lead locomotive. The Globe and Mail has learned that part of the federal investigation into the rail disaster focused on a repair conducted nine months earlier that played a role in a series of events that led to the train's derailment and explosion in Lac-Megantic, Quebec. (bit.ly/1kNECvl)

Reports in the business section:

* Chinese companies have shelled out more than $30 billion in Canada's energy industry, but many of those investments have been hit with operational problems, delays and weak returns, leading to growing impatience in some quarters in China. PetroChina Co Ltd, Sinopec , CNOOC Ltd, China Investment Corp and other state-owned enterprises made a raft of big bets on oil sands projects, shale developments and domestic companies since 2005 and many have yet to pay off. (http://bit.ly/1px0jQj)

NATIONAL POST

* Federal officials closely tracked the fallout of a Royal Canadian Mounted Police raid on a First Nations protest against shale-gas exploration in New Brunswick. At one point, the protests raised concerns it could spawn another countrywide movement like "Idle No More." Members of the Elsipogtog First Nation, who were concerned about the environmental impact of shale-gas development, didn't want energy company SWN Resources to do testing work on their traditional territory. (http://bit.ly/1lcBv0D)

* Three groups representing doctors say they will not take part in an anti-drug campaign by Health Canada that will target young people because it has become a political issue. A statement issued on Saturday by the College of Family Physicians of Canada, Canadian Medical Association and Royal College of Physicians and Surgeons of Canada says they were invited to be involved in the campaign. It says the groups "did not, and do not, support or endorse any political messaging or political advertising on this issue." (http://bit.ly/VyGVXf)

FINANCIAL POST

* CTV has made deep cuts to its flagship newsmagazine show W5, blaming falling advertising revenue and changing viewer habits. Bell Media Inc, which runs CTV, said that seven contract positions on the production team at W5 were not renewed. As a result, the network is trimming the number of episodes it will air this season to 14 from the usual 23. (http://bit.ly/1kNAtrl)

* Beleaguered miner Imperial Metals Corp plans to issue $100 million of convertible debt to help fund the cleanup of its stricken Mount Polley mine and finish building its new Red Chris operation, both in British Columbia. (http://bit.ly/Vya7Ov)

China

- Several domestic banks in Shanghai, including Bank of China Ltd, China Construction Bank Corp, Industrial and Commercial Bank of China Ltd and Agricultural Bank of China Ltd, denied that they had lowered interest rates on property loans, sources told the newspaper.

- Total revenues of China's 838 listed companies reached 2.23 trillion yuan ($362.78 billion), up 8.9 percent from a year ago, according to the newspaper's calculations.

CHINA DAILY

- Despite recent progress, China' antitrust team lacks real enforcement capability, especially when challenging dominant state-owned enterprises, due to a shortage of manpower, legal experts say.

- China is keen to export technology and equipment to the United States to take part in its upgrading of transport infrastructure, Premier Li Keqiang said while meeting a U.S. delegation on Saturday.

SHANGHAI SECURITIES NEWS

- Almost 3,000 small and medium enterprises (SMEs) have expressed interest in listing on China's SME board, the newspaper said.

Britain

The Times

BANKS 'ABUSED' LOAN GUARANTEE FOR FIRMS

The Serious Fraud Office is examining allegations that government schemes designed to increase lending to small businesses have been abused by high street banks.

CARILLION PLANS FURTHER TILT AT BALFOUR BEATTY

The board of Carillion is weighing up options to sweeten its proposal for a 3 billion pound merger with Balfour Beatty.

The Guardian

INTEREST RATES WILL RISE BEFORE REAL PAY STOPS FALLING, SAYS CARNEY The Bank of England governor says the economy is halfway there, but the most difficult part of the UK's recovery lies ahead

The Telegraph

'GET NEW INDEPENDENT DIRECTORS AT BETFAIR', SAYS PENSION FUND

The Local Authority Pension Fund Forum (LAPFF) has called for "new independent directors" to be appointed to investigate the Betfair's dividend payments over the past three years and the role of its directors and auditors, KPMG.

Sky News

WALL STREET GIANTS SWOOP ON SUB-PRIME LENDER

Blackstone and TPG, the U.S.-based private equity groups, are close to securing a takeover of sub-prime mortgage lender Kensington, which is owned by the Anglo-South African financial services provider Investec.

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Housing market index for August at 10am -- consensus 53.0

ANALYST RESEARCH

Upgrades

Equity Residential (EQR) upgraded to Hold from Underperform at Jefferies
HMS Holdings (HMSY) upgraded to Overweight from Equal Weight at First Analysis
Halcon Resources (HK) upgraded to Buy from Hold at MLV & Co.
KapStone (KS) upgraded to Buy from Hold at Deutsche Bank
Sportsman's Warehouse (SPWH) upgraded to Outperform from Neutral at RW Baird
WisdomTree (WETF) upgraded to Neutral from Sell at Citigroup

Downgrades

Arrow Electronics (ARW) downgraded to Neutral from Buy at Goldman
Constellium (CSTM) downgraded to Neutral from Outperform at Credit Suisse
Federal Realty (FRT) downgraded to Hold from Buy at Jefferies
InvenSense (INVN) downgraded to Neutral from Buy at Goldman
Liberty Ventures (LVNTA) downgraded to Sell from Neutral at Citigroup
Monster Beverage (MNST) downgraded to Hold from Buy at Jefferies
NXP Semiconductors (NXPI) downgraded to Sell from Neutral at Goldman
Werner (WERN) downgraded to Underperform from Neutral at BofA/Merrill

Initiations

Descartes Systems (DSGX) initiated with an Overweight at Barclays
Immune Design (IMDZ) initiated with a Buy at Jefferies
Intersect ENT (XENT) initiated with an Overweight at Piper Jaffray
Pfenex (PFNX) initiated with a Buy at Mizuho
Pfenex (PFNX) initiated with an Outperform at JMP Securities
Pfenex (PFNX) initiated with an Outperform at William Blair
Semiconductor Manufacturing (SMI) initiated with an Overweight at Barclays
Synergy Resources (SYRG) initiated with a Buy at Canaccord
Townsquare Media (TSQ) initiated with a Buy at BofA/Merrill
Townsquare Media (TSQ) initiated with a Buy at Jefferies
Townsquare Media (TSQ) initiated with an Outperform at RBC Capital

COMPANY NEWS

Dollar General (DG) offers to acquire Family Dollar (FDO) for $78.50 per share
Sensata (ST) to acquire Schrader International for $1B
Tesla (TSLA) announced increase to Model S drive unit warranty, said change to have 'moderately negative' impact on earnings in the short-term
Rio Tinto (RIO) to review options in Bougainville Copper Limited
Yahoo (YHOO) acquired Israel-based ad startup ClarityRay, terms not disclosed

EARNINGS

Fuel Systems (FSYS) sees FY14 revenue $335M-$355M, consensus $347.13M
FS Investment (FSIC) reports Q2 adjusted net investment income 26c, consensus 24c

NEWSPAPERS/WEBSITES

U.S. banks (BAC, C, MS) making plans for U.K. exit from EU, FT reports
Apache (APA) discovers oil field in Western Australia, WSJ reports
FCC must decide on Time Warner Cable (TWC) arrangement as it reviews Comcast (CMCSA) deal, WSJ says
Icahn's recent stake in Gannett (GCI) should reassure investors, Barron's reports
BB&T (BBT), Juniper (JNPR), ConocoPhillips (COP), United Technologies (UTX) look discounted, Barron's says
Mick Davis in talks to buy Colombia's CNR from Goldman (GS), Sunday Times reports
McDonald's (MCD) orders products from Thai supplier after food scare, Reuters reports

SYNDICATE

Extra Space Storage (EXR) files automatic mixed securities shelf
Hill International (HIL) files to sell 20M shares of common stock
Mercury Systems (mrcy) files $500M mixed securities shelf
New York Mortgage (NYMT) files automatic mixed securities shelf
Pathfinder Bancorp (PBHC) to commence stock offering
Uranium Energy (UEC) files to sell 199,755 shares for holders

• Islamic State executes soldiers, takes hostages at Syria base (Reuters)
• Buffett Burger King Funds Flip Obama’s Inversion Calculus (BBG)
• Equities Reach Record $66 Trillion as S&P 500 Hits 2,000 (BBG)
• Central Banks Playing Own Version of Plaza-opoly With FX (BBG)
• Russia court closes McDonald's branch for 90 days (Reuters)
• Finland Says NATO an Option After Russia ‘Violates’ Border Laws (BBG)
• Netanyahu Hit With Domestic Criticism Over Gaza Truce (BBG)
• Biggest Danish Fund Readies for Rate Shock as Exit Narrows (BBG)
• Nonprofit Hospitals' Profits Fall (WSJ)
• Snapchat Fetches $10 Billion Valuation (WSJ), a year after it was valued at $800 million
• Apple Said to Prepare New 12.9-Inch IPad for Early 2015 (BBG)
• Demonstrations resume in Missouri over shooting death of black teen (Reuters)
• China Is Awash in Grain Crops (WSJ)

Overnight Media Digest

WSJ

* Israel and Hamas agreed to their first open-ended cease-fire after seven weeks of military confrontation and will resume truce talks in Cairo in the coming days. (http://on.wsj.com/1ldqdZE)

* Burger King Worldwide Inc defended its acquisition of Tim Hortons Inc as the hamburger chain came under criticism for its effort, backed by billionaire investor Warren Buffett, to move the quintessential American brand to Canada. (http://on.wsj.com/1ASHDyp)

* Kleiner Perkins Caufield & Byers agreed to invest in Snapchat at a valuation of close to $10 billion, making it one of the world's most valuable private tech start-ups.(http://on.wsj.com/1qKk2J9)

Big Tobacco is finally making its big push into electronic cigarettes. Altria Group Inc and Reynolds American Inc together have captured about a quarter of convenience-store sales just weeks into national rollouts of the battery-powered devices. In a surprising development, though, e-cigarette sales are falling at these traditional retail outlets, reversing three years of rapid-fire growth. (http://on.wsj.com/XQZ04P)

* American Airlines Group Inc has withdrawn its flights from consumer websites powered by Orbitz Worldwide Inc, following a similar dispute between the airline and the travel website about three years ago. (http://on.wsj.com/1ASIgbc)

* The U.S. Securities and Exchange Commission is expected to complete rules Wednesday that would require banks and other firms to provide investors with more details about loans pooled into bonds known as asset-backed securities. (http://on.wsj.com/1pfnn7m)

* Islamic State insurgents have planted explosives to stall a Kurdish push to retake the town of Jalawla, an unfolding strategy that foes describe as built on patience, the element of surprise and a willingness to take losses. (http://on.wsj.com/1wzYEib)

* A meeting between the Russian and Ukrainian presidents failed to produce a breakthrough for ending the conflict over eastern Ukraine, as Kiev released videos of captured Russian soldiers and rebels pushed toward a government-held city. (http://on.wsj.com/1zBS7ji)

* Singapore's Oversea-Chinese Banking Corp and its insurance unit have entered exclusive talks to sell their stakes in property and engineering company United Engineers Ltd to Thai billionaire Charoen Sirivadhanabhakdi. (http://on.wsj.com/1qsXYGl)

FT

The United States is preparing military options, including surveillance flights, to pressure Islamic State in Syria, U.S. officials said on Monday.

Europe's leaders are set to select Federica Mogherini, Italy's foreign minister, as EU foreign policy chief at a summit on Saturday, despite worries among some EU countries that she is too inexperienced and will not be tough enough on Russia.

Warren Buffett defended his role in Burger King's $11.4 billion acquisition of coffee and doughnuts chain Tim Hortons, that will see the U.S. fast food chain's headquarters move to Canada as part of the tax inversion deal.

The United Kingdom's Financial Conduct Authority could fine Royal Bank of Scotland about 15 million pounds ($24.82 million) over its mortgage record-keeping and advice to borrowers, according to two people familiar with the matter.

WPP, the world's largest advertising company, said the strong British pound "ravaged" its revenues, wiping more than 400 million pounds $661.72 million) off its net sales in the first half of the year.

NYT

* As Detroit prepares to defend its plan next week to exit bankruptcy, city leaders have received an unusual offer: Why not mortgage all the Van Goghs, Picassos and other works in the Detroit Institute of Arts? A company called Art Capital, which makes loans backed by artwork, has told the city it is willing to lend it up to $3 billion, roughly 10 times the exit financing Detroit is now contemplating, using the museum's art as collateral. But the city's response is silence. (http://nyti.ms/1tBtQtM)

* Allergan Inc, the Botox maker fending off a hostile takeover attempt by Valeant Pharmaceuticals International Inc and Pershing Square Capital Management, has set a date for a special meeting at which shareholders will have the opportunity to vote out a majority of the board. In a filing with the Delaware Chancery Court, Allergan said the meeting would take place on Dec. 18. (http://nyti.ms/1ryIcfQ)

* Google Inc announced Tuesday that it bought Boston-based Zync Inc, the maker of Zync Render, a "cloud-based rendering software." Google wouldn't say how much it paid for Zync. The company will integrate Zync's data and technology into the Google Cloud Platform, and move off Amazon.com Inc Web Services. (http://nyti.ms/1syGo2c)

* A cross-border fast-food deal has united Warren Buffett with one of his favorite investors. Buffett's conglomerate, Berkshire Hathaway, is helping finance Burger King Worldwide Inc's $11.4 billion takeover of the Canadian restaurant chain Tim Hortons Inc by buying $3 billion of preferred shares in the new company. (http://nyti.ms/XQVDee)

* Time Warner Inc's Turner Broadcasting System division said on Tuesday that it was offering buyouts to about 600 employees, the first step in an ambitious effort to overhaul a portfolio of cable networks that have struggled with declining ratings at a time of intense competition for viewers. Layoffs and additional cost-cutting measures will follow, according to an internal memo announcing the buyouts. (http://nyti.ms/YWQEsE)

* Volvo AB on Tuesday introduced its first vehicle designed and built under Chinese ownership. The vehicle, a seven-seat sport utility vehicle known as the XC90 that will go on sale in April, is probably a make-or-break model for Volvo. (http://nyti.ms/1qKeyxX)

* Michael Lucarelli, the director of market intelligence at Lippert/Heilshorn and Associates, was arrested and charged with 13 counts of insider trading for buying and selling stocks based on information in news releases his company had prepared for its clients, the Federal Bureau of Investigation and Preet Bharara, the United States attorney in Manhattan, said in a statement. (http://nyti.ms/1zBUTVN)

* The Swiss private bank Pictet Group reported its financial results publicly for the first time in its 209-year history on Tuesday, showing a profit and highlighting continuing changes in Switzerland's traditionally secretive banking culture. (http://nyti.ms/1tEZy8F)

* Governments should ban the use of electronic cigarettes in public places and outlaw tactics to lure young users, the World Health Organization said in a report released on Tuesday that calls for some of the toughest measures yet proposed for the increasingly popular devices. It also expressed "grave concern" about the growing role of the powerful tobacco industry in the e-cigarette market. (http://nyti.ms/1qsW1tG)

Canada

THE GLOBE AND MAIL

** Barrick Gold Corp is eliminating its entire corporate development team and more cuts are in the works as the world's top gold miner looks to trim costs, three sources familiar with the situation said on Tuesday. (http://bit.ly/1zDcYml)

** Canada's public health agency is preparing to bring home a trio of scientists who were helping to combat Ebola in Sierra Leone after three people in their hotel complex tested positive for the viral hemorrhagic fever. A Health Canada spokesman confirmed late Tuesday night that the Public Health Agency of Canada is finalizing plans to pull its mobile laboratory team out of the West African country. (http://bit.ly/1tCil5r)

NATIONAL POST

** Cominar Real Estate Investment Trust has signed a deal to buy a portfolio of 15 properties including shopping centres, office buildings and an industrial park in Quebec and Ontario from Ivanhoe Cambridge Inc for C$1.53 billion ($1.40 billion). (http://bit.ly/1qgvNtt)

** Hewlett-Packard Co is recalling more than 6 million personal-computer power cords in the United States and Canada, citing reports of overheating and melting units. The cords, distributed with Hewlett-Packard and Compaq notebooks and related products, were sold from September 2010 to June 2012, the company and U.S. Consumer Product Safety Commission said in a statement on Tuesday. (http://bit.ly/1p84Gg4)

** The Canadian Human Rights Tribunal has ordered Human Resources and Skills Development Canada to reimburse former employee Leslie Hicks nearly C$17,000 ($15,606) in expenses after ruling last year the department had engaged in "reckless discrimination" against him. (http://bit.ly/1tCcRHF)

** Drivers in Ontario could soon face much stiffer penalties for texting behind the wheel, as the governing Liberals are set to reintroduce a bill that would boost the maximum fine to C$1,000 ($918). (http://bit.ly/1zD3RSL)

Hong Kong

- The president of China Resources Power (CRP) and a Shanxi tycoon, believed to be the biggest beneficiary of a controversial coal investment, have been detained by authorities. CRP said its executive director Wang Yujun was under investigation in Jiangsu province, while sources revealed that Zhang Xinming, once the richest man in Shanxi, had been detained earlier this month. (bit.ly/1wzmdaR)

- Fashion retailer Fujian Nuoqi should have disclosed more information on its two failures to list on the mainland before floating its shares in Hong Kong, and CCB International, the sole sponsor of the share sale, may possibly be disciplined, analysts said. Nuoqi, which listed in Hong Kong in January, reported to police in July that its chairman was missing. (bit.ly/1tSzh5V)

- Homebuyers are increasingly seeking to finance their purchases with loans based on the lower interest rates in the Hong Kong interbank offered rate market. The percentage of mortgage applicants opting for loans priced with reference to Hibor rose from 42 percent in January to 77 percent in June, Hong Kong Monetary Authority data shows. (bit.ly/VMCAAa)

THE STANDARD

- Hopewell Holdings declared a special dividend distribution of one share of Hopewell Highway Infrastructure for every 20 shares of the developer, hoping to boost HHI's market liquidity and shareholder base. (bit.ly/YWM5i7)

- The Urban Renewal Authority's Kwun Tong redevelopment project received six tenders, including Henderson Land , Sun Hung Kai Properties, Wheelock and Great Eagle. It is believed to involve a total investment of HK$18 billion ($2.3 billion). (bit.ly/1luUVhl)

HONG KONG ECONOMIC JOURNAL

- Internet game developer Forgame Holdings Ltd said its net loss narrowed to 2.14 million yuan for the first half of 2014, from a 233 million yuan loss in the year-ago period.

HONG KONG ECONOMIC TIMES

- China Securities Regulatory Commission has approved Shenzhen Stock Exchange's plan to conduct a feasibility study in relation to a trading connection with the Hong Kong stock exchange, according to a Shenzhen municipality official.

MING PAO DAILY NEWS

- Department store operator Golden Eagle Retail Group Ltd , which is under pressure due to keen competition from e-commerce sites, is not in a hurry to develop its own e-commerce business as the company has still not seen a proven profit-making business model so far, according to chairman Roger Wang.

Britain

The Times

FRAUD OFFICE ATTACKS FLAWED CRIME REPORTS

The Serious Fraud Office has criticised the recruitment of independent experts to investigate criminal behaviour in companies, warning that the practice risks destroying the evidence needed to put rogue business people and bankers behind bars.

HOUSE PRICES EXPECTED TO RISE BY MORE THAN 25 PCT IN FIVE YEARS

House prices in Britain will be more than 25 percent higher in five years, with London finally being overtaken by other parts of the country.

The Guardian

CAMERON FACES DOUBLE 2015 TROUBLE

UKIP leader Nigel Farage and London Mayor Boris Johnson take steps toward Westminster, causing political headaches for Tory leaders.

SCOTTISH YES VOTE AND BRITISH EU EXIT COULD HIT UK ECONOMY, SAYS SORRELL

WPP boss Sir Martin Sorrell has warned that the prospect of Scotland voting for independence and Britain leaving the European Union could weaken the UK economy, adding to worries over heightened geopolitical tensions in Ukraine and the Middle East.

The Telegraph

GORDON BROWN AND ALISTAIR DARLING PUT ASIDE DIFFERENCES IN FIGHT FOR UK The former Prime Minister and his former chancellor are to share a platform for the first time in the independence referendum debate following Alex Salmond's damaging TV debate victory.

SCOTTISH INDEPENDENCE VOTE COULD PROMPT PENSIONS CRISIS If Scotland votes "yes" this September, EU pension rules could threaten the cash flow of the UK's largest companies, warns JPMorgan.

Sky News

RBS HIT BY 15 MLN STG FCA MORTGAGE ADVICE FINE

Royal Bank of Scotland will on Wednesday add to the list of misconduct for which it has been fined since it was bailed out by British taxpayers when it pays millions of pounds for giving poor advice to mortgage customers.

CALL FOR E-CIGARETTES TO BE BANNED INDOORS The World Health Organisation wants tougher regulation, including a ban on selling to minors and on vending machines in public.

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS

Domestic economic reports today include:
MBA purchase applications for week of Aug. 22--up 2.8%

ANALYST RESEARCH

Upgrades

Aruba Networks (ARUN) upgraded to Buy from Neutral at UBS
Hilltop Holdings (HTH) upgraded to Outperform from Market Perform at Keefe Bruyette
Rent-A-Center (RCII) upgraded to Buy from Hold at Canaccord
Tim Hortons (THI) upgraded to Neutral from Underperform at Credit Suisse
Waste Management (WM) upgraded to Buy from Hold at Stifel

Downgrades

Bank of Nova Scotia (BNS) downgraded to Neutral from Outperform at Credit Suisse
E-House (EJ) downgraded to Neutral from Buy at Goldman
Facebook (FB) downgraded to Neutral from Buy at Janney Capital
Laredo Petroleum (LPI) downgraded to Hold from Buy at Canaccord
Leju (LEJU) downgraded to Neutral from Buy at Goldman
Pioneer Natural (PXD) downgraded to Hold from Buy at Canaccord
Sturm, Ruger (RGR) downgraded to Fair Value from Buy at CRT Capital
Susser Petroleum downgraded to Market Perform from Outperform at Wells Fargo
Tim Hortons (THI) downgraded to Sector Performer from Outperformer at CIBC

Initiations

ASML (ASML) initiated with a Hold at Stifel
Akamai (AKAM)initiated with an Outperform at RW Baird
Alcobra (ADHD) initiated with a Market Perform at FBR Capital
Axcelis (ACLS) initiated with a Buy at Stifel
Bank of the Ozarks (OZRK) initiated with a Buy at Drexel Hamilton
Bristol-Myers (BMY) initiated with a Hold at Deutsche Bank
Concur (CNQR) initiated with a Neutral at DA Davidson
Cornerstone OnDemand (CSOD) initiated with a Neutral at DA Davidson
CyrusOne (CONE) initiated with a Neutral at Citigroup
Eli Lilly (LLY) initiated with a Buy at Deutsche Bank
FCB Financial (FCB) initiated with a Neutral at Guggenheim
First Financial (FFIN) initiated with a Hold at Drexel Hamilton
Garmin (GRMN) initiated with a Neutral at RW Baird
Marketo (MKTO) initiated with a Buy at DA Davidson
Merck (MRK) initiated with a Hold at Deutsche Bank
NetSuite (N) initiated with a Buy at DA Davidson
Oracle (ORCL) initiated with a Neutral at DA Davidson
Oxford Industries (OXM) initiated with a Buy at Wunderlich
Pfizer (PFE) initiated with a Buy at Deutsche Bank
ServiceNow (NOW) initiated with a Buy at DA Davidson
Southside Bancshares (SBSI) initiated with a Hold at Drexel Hamilton
Workday (WDAY) initiated with a Neutral at DA Davidson

COMPANY NEWS

Allergan (AGN) requests block to Ackman, Valeant (VRX) votes, announces Special Meeting date of December 18
Royal Bank of Scotland (RBS), NatWest fined GBP14.47M by FCA
Mario Gabelli told CNBC that Chemtura (CHMT) has limited downside, can double in next five years; Gabelli also said he thinks Diebold (DBD) is "in the beginning of a major turnaround"
Aruba Networks (ARUN) announced a 3.7% workforce reduction
Cooper Tire (CTB) said Chengshan JV valued at around $440M
CFTC ordered Merrill Lynch (BAC) to pay $1.2M fine for supervision failures
Lakes Entertainment (LACO) engaged financial advisor to explore strategic alternatives
Chiquita Brands (CQB), Fyffes now see $60M of annualized pre-tax cost savings
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Donaldson (DCI), Seadrill (SDRL), Globe Specialty Metals (GSM), HEICO (HEI), Dycom (DY), TiVo (TIVO), TubeMogul (tube), Smith & Wesson (SWHC), Nimble Storage (NMBL), Aruba Networks (ARUN)

Companies that missed consensus earnings expectations include:

SQM (SQM), Solera (SLH)

Companies that matched consensus earnings expectations include:

Bob Evans (BOBE), Analog Devices (ADI)

NEWSPAPERS/WEBSITES

Apple (AAPL) readying larger iPad for 2015 launch, Bloomberg reports
Shell-led (RDS.A) group close to selling Nigeria oilfields for $5B, FT reports (TOT, E)
AT&T's (T) Ralph de la Vega to oversee enterprise and mobile, Re/code reports
Apple (AAPL) may introduce a thinner MacBook as early as this year, Digitimes says
Intel (INTC) working on luxury smart bracelet with curved glass display, Business Insider reports
Amazon (AMZN) steps point to digital health entry, VentureBeat says
Repsol (REPYY), Talisman (TLM) talks on oil and natural gas assets stall, WSJ reports
Time Warner Cable (TWC) customers reporting outages nationwide, Business Insider reports

SYNDICATE

Air Industries (AIRI) files $12.14M mixed securities shelf
Ardmore Shipping (ASC) files $300M mixed securities shelf
BNC Bancorp (BNCN) files $150M mixed securities shelf
Carver Bancorp (CARV) requests withdrawal of registration statement
Compugen (CGEN) files $200M mixed securities shelf
Gabelli Equity Trust announces rights offering
Quest Resource Holding (QRHC) files $50M mixed securities shelf

• A Month of Bombs Dropped in One Night of Strikes on Syria (BBG)
• Air strikes in Syria hit Islamic State-held areas near Turkey (Reuters)
• Pimco ETF Draws Probe by SEC (WSJ)
• Shadowy al Qaeda cell, hit by U.S. in Syria, seen as 'imminent' threat (Reuters)
• Yellen Warns on Market Calm Before ‘Considerable Time’ Up (BBG)
• Dudley Says Fed Needs U.S. Economy to Run ‘A Little Hot' (BBG)
• Websites Are Wary of Facebook Tracking Software (WSJ)
• Tokyo Gas in no hurry to buy new LNG from Russia due to sanctions (Reuters)
• Just a joke now: Barclays Fined Twice in One Day for Compliance Failures (BBG)
• Companies in Bakken Shale Fight Limits on Oil Trains (WSJ)
• Fired UPS worker kills two supervisors, self, in Alabama shooting (Reuters)
• Citizens Financial IPO Prices at $21.50 a Share, Below Range (WSJ)
• NYC Luxury-Condo Buyers Await New Towers as Sales Slow (BBG)
• San Francisco Skyscraper Values Soar as Tech Lifts Rents (BBG)
• NYC’s Most Expensive Condo to Be Listed at $130 Million (BBG)
• Planned obsolescence 101: May I Borrow Your Shower? Ukraine Braces for Winter Cold (BBG)
• The iPhone 6's latest free feature: it bends in your pocket (MacRumors)
• U.S. hospitals unprepared to handle Ebola waste (Reuters)
• Dutch parcel service TNT Express issues profit warning, warns of weak growth in Europe and the US (Expatica)

Overnight Media Digest

WSJ

on.wsj.com/1xbTjx3)

* Pfizer Inc explored a potential tax-lowering takeover of rival Actavis PLC in recent weeks, but talks between the two pharmaceutical companies have ended, according to a person familiar with the matter. (on.wsj.com/ZcBTT4)

* Investors had to wait more than a decade for a bank offering the size of Citizens Financial Group Inc's $3 billion initial stock sale. In the deal priced Tuesday, Royal Bank of Scotland Group PLC offered 140 million shares of the U.S. regional bank for $21.50 each. That is below the company's expected range of between $23 and $25 a share, according to filings. Citizens' common stock is expected to begin trading on the New York Stock Exchange on Wednesday under the ticker "CFG." (on.wsj.com/1mrSmNc)

* Executives from the top oil companies in the Bakken Shale told state regulators that their crude is safe to transport by train, opposing possible requirements that they make the oil less volatile before shipping it. The industry pushback comes as North Dakota considers new rules on treating crude to stabilize it, spurred by growing public concern about the safety of oil-laden trains crisscrossing the country.(on.wsj.com/1uXEg7F)

* Google Inc must improve its proposal to settle European Union concerns over its search practices or face formal antitrust charges, the bloc's competition chief said, even as he rejected calls to break up the U.S. search giant. (on.wsj.com/1pbDI8B)

* Frank Tamayo, who surrendered to the FBI last week, worked as a home lending officer for Citigroup Inc in Midtown Manhattan, across the street from the bank's headquarters, according sources and confirmed by the bank. The U.S. attorney's office of New Jersey on Friday named Tamayo as part of the alleged insider-trading ring, and said he had pleaded guilty to securities fraud. Citigroup said in a statement on Tuesday that it "terminated this individual as soon as we learned of his admission of guilt." (on.wsj.com/ZJvcIa)

* Oracle Corp paid Larry Ellison, who vacated the chief executive post last week, $67.3 million for his final full year in the job, the company said. Nearly all of Ellison's compensation consisted of stock options. For the fiscal year 2014, Ellison's salary remained $1, as it has been since 2011. (on.wsj.com/1mOxH6A)

* Brazilian authorities have filed a criminal action against eight Embraer SA employees accusing them of bribing officials in the Dominican Republic in return for a $92 million contract to provide the country's armed forces with attack planes. (on.wsj.com/XZjV4M)

* Mitesh Parikh, Goldman Sachs Group Inc's European head of spot foreign exchange trading, is leaving to join a hedge fund, according to people familiar with the matter. (on.wsj.com/1v8Q4mF)

FT

Royal Bank of Scotland Group Plc was pressured into cutting the price of shares sold in the Citizens Financial stock market offering to $21.50, to ease investor concerns over the lender's ability to perform on its financial goals.

Airbus Group is packing more seats into its A380 superjumbo aircraft, hoping to revive interest in the world's largest passenger jet. German venture capital group Rocket Internet has priced shares for its initial public offering at a midpoint market capitalization of 6.2 billion euros ($7.96 billion).

British technology company Arm Holdings Plc is releasing a chip designed for connected home appliances and wearable products, hoping to open up new avenues for future growth.

Norwegian fertilizer firm Yara International is in merger talks with U.S.-based CF Industries Holdings Inc - a deal that would make them one of the largest international crop nutrient producers.

NYT

* President Obama, emboldened by his use of executive powers to fight climate change at home, challenged China on Tuesday to make the same effort to reduce its greenhouse-gas emissions and join a worldwide campaign to curb global warming. (http://nyti.ms/1wL6DVX)

* Maurice R. Greenberg, 89, the former American International Group Inc chief executive, who still holds a large stake in the insurance company, filed a lawsuit on behalf of fellow shareholders that accuses the government of shortchanging the AIG in its 2008 bailout.(http://nyti.ms/ZJu0Vc)

* The three largest soda companies - The Coca-Cola Co , PepsiCo Inc and the Dr Pepper Snapple Group - have pledged to cut the number of sugary drink calories that Americans consume by one-fifth in about a decade, through a combination of marketing, distribution and packaging. (http://nyti.ms/ZcC7cO)

* After 26 years within the Royal Bank of Scotland Group , the Citizens Financial Group, the American retail bank, is setting off on its own. The bank raised $3 billion in its initial public offering on Tuesday, valuing itself at $12.9 billion, which was below expectations. (http://nyti.ms/1rjpx4q)

* Tiger Global Management, the $15 billion investment firm that has invested in the likes of the Alibaba Group <IPO-BABA.N> and the sunglasses maker Warby Parker, has begun raising a $1.5 billion fund, just five months after raising another $1.5 billion vehicle, a person briefed on the matter said on Tuesday. (http://nyti.ms/1rmH0KH)

* A week after Zalando <IPO-ZLDO.F>, the German e-commerce giant, announced plans for an I.P.O. that could value the company at up to $7.3 billion, Rocket Internet, another Berlin-based Internet company, said on Tuesday that its own public offering could value the company at up to $7.8 billion. (http://nyti.ms/1xbZWiQ)

Canda

THE GLOBE AND MAIL

** The unique marriage of Maple Leaf Foods Inc and activist shareholder Greg Boland ended earlier this month when Bay Street fund West Face Capital Inc sold its four-year-old stake in the company. (http://bit.ly/Y0FeTA)

** Canada's environment minister says the government is committed to reaching a new global climate deal in Paris next year, as leaders from two of the world's biggest carbon emitters, the United States and China, pledged to take tougher action to combat global warming. (http://bit.ly/1sXhFUn)

** Liberal Leader Justin Trudeau says he will "continue to not engage" with Sun Media - one of the country's largest newspaper and media organizations - after one of its columnists and TV hosts made critical and personal remarks about Trudeau's parents. (http://bit.ly/1xdoLeg)

NATIONAL POST

** The day after Netflix Inc defied an order from Canada's broadcast regulator to hand over its subscriber data, the U.S. video-streaming service insisting it was not bound by Canadian regulations, legal observers said the Canadian Radio-television and Telecommunications Commission has little recourse to force the matter besides taking the company to court. (http://bit.ly/1ohvPOH)

** If the question going into the mayoralty debate on Tuesday evening was what kind of Doug Ford would show up, the answer was this: one that was fired up. Sticking to tried and tested slogans about gravy trains, subways and a tax and spend yesteryear, Councillor Ford proved he can spar with the best of them at his first performance since joining the race, in front of a decidedly friendly crowd at York Memorial Collegiate. (http://bit.ly/1tYG3t7)

** After undergoing chemotherapy to combat a rare form of cancer, Toronto Mayor Rob Ford is home with his family after being discharged from a Toronto hospital on Tuesday afternoon. (http://bit.ly/1msaK8L)

China

CHINA DAILY

- China's top food and drug regulator plans to grade food and drug producers and issue a blacklist with information on enterprises, in a move to address serious food safety issues that have emerged in recent years.

CHINA SECURITIES JOURNAL

- China may take a dual approach of lowering interest rates and adjusting the exchange rate when the economy is under pressure, the paper said in its front-page comment.

SHANGHAI SECURITIES NEWS

- China Securities Depository and Clearing Corporation Limited announced on Tuesday the unified account online platform would be launched on Oct. 1 and that account fees would be lowered starting from Oct. 8.

PEOPLE'S DAILY

- Different countries have different methods of governance and consultative democracy is China's most important, unique governing channel, the official People's Daily said in an editorial.

Britain

The Times

SFO PUTS TESCO IN THE SPOTLIGHT AS CRISIS DEEPENS Britain's Serious Fraud Office is following events at the country's biggest supermarket chain Tesco Plc closely as the company investigates whether any deliberate manipulation was involved in the creation of 250 million pounds ($409.75 million) of illusory profits. (http://thetim.es/1sWBeMt)

TESCO'S RETAIL RIVALS WARNED OVER RISKS IN ACCOUNTS Auditors have warned leading retailers including J Sainsbury , Wm Morrison and Travis Perkins Plc that they could be at risk of a Tesco-style accounting fiasco. (http://thetim.es/1rmAq6V) ANOTHER FINE MESS FOR BARCLAYS, THE BRITAIN'S MOST PENALISED FINANCIAL GROUP Barclays Plc has been officially declared the most-fined financial institution in Britain after confirming that it is paying a 38 million pound penalty for failings that put billions of pounds of client money at risk. (http://thetim.es/1uFjhUJ)

The Guardian

JIMMY CHOO PLANS FLOTATION VALUED AT MORE THAN 700 MLN STG Jimmy Choo <IPO-JIM.L> has set out plans to join the London Stock Exchange next month in a deal that could value the upmarket shoemaker at more than 700 million pounds, seeking to woo investors with the prospect of expansion in Asia. (http://bit.ly/XYdSO4)

BANK OF ENGLAND DEPUTY CALLS FOR U.S. CO-OPERATION OVER BANK FINES The deputy governor of the Bank of England has called for better co-operation with U.S. regulators over the scale of fines being levied on banks to ensure they do not weaken their financial position. (http://bit.ly/ZcrKpi)

The Telegraph

MOBILE OPERATORS IN TALKS FOR RURAL COVERAGE COMPROMISE

Britain's mobile operators are in talks with the government over a deal to share access to their masts in an effort to improve coverage in rural areas. The plans would allow EE, O2, Three and Vodafone Group Plc to avoid a more economically and technically challenging 'national roaming' regime being imposed, according to government sources. (http://bit.ly/1wKT6xF)

BRITISH TAXPAYERS SET FOR $3 BLN WINDFALL AFTER RBS-OWNED CITIZENS PRICES IPO Citizens Financial Group, the U.S. bank owned by Royal Bank of Scotland, has priced its initial public offering at $21.50 a share, releasing more than $3 billion that has been trapped in America to taxpayers in the Britain. (http://bit.ly/1tXXfiq)

Sky News

SINGAPOREAN STATE FUND GIC IN TAKEOVER TALKS RAC FOR OVER 2 BLN STG

Singaporean state fund GIC is in talks to lead a takeover of roadside recovery business RAC for over 2 billion pounds, a move that would end the prospect of a stock market listing of RAC. (http://bit.ly/1riGeNv)

TESCO PROFIT ERROR: NEW FINANCE BOSS RUSHED IN Tesco Plc has managed to secure the services of its new Chief Financial Officer Alan Stewart more than two months early - a day after revealing a 250 million pound profits error. (http://bit.ly/1DvOSP9) The Independent

GOLDMAN SACHS'S NEW LONDON HQ FACING LEGAL CHALLENGE FROM NEIGHBOURS OVER THEIR 'RIGHT TO LIGHT' Goldman Sachs Group Inc's new headquarters in London is facing a possible legal challenge from the owners of neighbouring buildings - who claim the proposed office will steal their light. (http://ind.pn/1B4bD8G)

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
New home sales for August at 10:00--consensus up 4.4% to 430K rate

ANALYST RESEARCH

Upgrades

FTI Consulting (FCN) upgraded to Outperform from Market Perform at William Blair
Hi-Crush Partners (HCLP) upgraded to Buy from Hold at Wunderlich
Marvell (MRVL) upgraded to Market Perform from Underperform at JMP Securities
Rio Tinto (RIO) upgraded to Overweight from Equal Weight at Morgan Stanley
SYNNEX (SNX) upgraded to Outperform from Market Perform at Raymond James
Sage Therapeutics (SAGE) upgraded to Buy from Neutral at Goldman
WuXi PharmaTech (WX) upgraded to Conviction Buy from Neutral at Goldman

Downgrades

Ascena Retail (ASNA) downgraded to Neutral from Buy at Goldman
Auxilium (AUXL) downgraded to Sector Perform from Outperform at RBC Capital
Ericsson (ERIC) downgraded to Neutral from Buy at UBS
Medivation (MDVN) downgraded to Neutral from Buy at Goldman
Morgan Stanley (MS) downgraded to Neutral from Overweight at JPMorgan
TriMas (TRS) downgraded to Market Perform from Outperform at Wells Fargo
Unilever (UN) downgraded to Underperform from Hold at Jefferies

Initiations

Autoliv (ALV) initiated with an Outperform at Exane BNP Paribas
BNY Mellon (BK) initiated with a Neutral at Citigroup
Basic Energy (BAS) initiated with an Outperform at Wells Fargo
Cameron (CAM) initiated with a Market Perform at Wells Fargo
CoreLogic (CLGX) initiated with an Overweight at Piper Jaffray
FMC Technologies (FTI) initiated with a Market Perform at Wells Fargo
FNFV (FNFV) initiated with a Neutral at Piper Jaffray
Farmer Bros. (FARM) initiated with a Buy at B. Riley
Fidelity National (FNF) initiated with an Overweight at Piper Jaffray
First American (FAF) initiated with a Neutral at Piper Jaffray
Helmerich & Payne (HP) initiated with an Outperform at Wells Fargo
HomeAway (AWAY) initiated with a Buy at SunTrust
IMS Health (IMS) initiated with a Buy at Topeka
Nabors Industries (NBR) initiated with an Outperform at Wells Fargo
National Oilwell (NOV) initiated with a Market Perform at Wells Fargo
Northern Trust (NTRS) initiated with a Neutral at Citigroup
Pacific Drilling (PACD) initiated with a Market Perform at Wells Fargo
Paragon Offshore (PGN) initiated with a Market Perform at Wells Fargo
Patterson-UTI Energy (PTEN) initiated with an Outperform at Wells Fargo
Pioneer Energy (PES) initiated with an Outperform at Wells Fargo
Realogy (RLGY) initiated with an Overweight at Piper Jaffray
Ruckus Wireless (RKUS) initiated with a Neutral at SunTrust
State Street (STT) initiated with a Buy at Citigroup
Ubiquiti Networks (UBNT) initiated with a Buy at SunTrust
Wafergen Biosystems (WGBS) initiated with a Buy at Brean Capital

COMPANY NEWS

Atossa Genetics (ATOS) reports FDA does not clear ForeCYTE aspirator for U.S. marketing
Bill Barrett (BBG) to replace ITT Educational (ESI) in S&P 600 as of 9/30 close
Delek US (DK) declares 10c per share special dividend
Echo Therapeutics (ECTE) suspends operations to conserve liquidity
Egalet (EGLT) needs to conduct more clinical trials for Egalet (EGLT)-001
Green Dot (GDOT), Wal-Mart announce nationwide rollout of GoBank
Inovio (INO) Ebola vaccine moving into human trial with GeneOne Life Science
International Game (IGT) and GTECH amend merger agreement 
KCG Holdings (KCG) to cut 4% of workforce, recognize pre-tax charge of $5M-$6M
LyondellBasell (LYB) evaluating further expansion at Channelview
Malvern Federal Bancorp names Anthony Weagley as president, CEO
Pershing's Ackman sends letter to Allergan (AGN), threatens suit
Provectus (PVCT) cancer candidate PV-10 shows positive Phase II results
Starbucks (SBUX) to purchase remaining 60.5% share of Starbucks Japan for $913.5M
Starbucks (SBUX) sees Japan acquisition accretive to FY15 non-GAAP results
Urban Outfitters (URBN) targets doubling revenue by 2020
ZS Pharma (ZSPH) announces positive top-line results from HARMONIZE trial of ZS-9

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Bed Bath & Beyond (BBBY), Steelcase (SCS)

Companies that missed consensus earnings expectations include:
Copart (CPRT), AAR Corp. (AIR)

NEWSPAPERS/WEBSITES

Apple (AAPL) iOS 8 upgrade prompts more frequent app collapse, Bloomberg says
Apple (AAPL) iPhone 6 Plus bending in pockets, MacRumors says
Starz (STRZA) hires investment bank to explore sale, WSJ reports
Starz (STRZA) met with 21st Century Fox about takeover, LA Times reports
Data breach at Home Depot (HD) triggers fraudulent transactions across U.S., WSJ says
Experts see new tax rules not halting inversions, WSJ reports
GFI (GFIG), BGC (BGCP) merger talks slowed by confidentiality dispute, Bloomberg says
Pfizer (PFE), Actavis (ACT) takeover talks ended last week, WSJ reports
Verizon (VZ) hires TAP Advisors for tower sale, lease agreement, Bloomberg says

SYNDICATE

American Midstream (AMID) files to sell 4.62M units for limited partners
Avanir (AVNR) 18.2M share Secondary priced at $11.00
Citizens Financial (CFG) 140M share IPO priced at $21.50
CyberArk (CYBR) 5.36M share IPO priced at $16.00
Envision Healthcare (EVHC) files to sell 17.5M shares for holders
GasLog Partners (GLOP) files to sell 4.5M common units
Gladstone Land (LAND) files to sell 1.15M shares of common stock
Martin Midstream Partners (MMLP) files to sell 3M common units
Medley Management (mdly) 6M share IPO priced at $18.00
Seadrill Partners (SDLP) files to sell 8M common units
Smart & Final Stores (SFS) 13.45M share IPO priced at $12.00

• Turkey says Syria town about to fall as Islamic State advances (Reuters)
• Only now? Growth worries grip stocks, oil (Reuters)
• Hong Kong Protest Leaders ‘Furious’ at Agenda for Talks (BBG)
• Earthquake Damages Thousands of Homes in Southern China (BBG)
• Keystone Be Darned: Canada Finds Oil Route Around Obama (BBG)
• Where Is North Korea's 31-Year-Old Leader? (BusinessWeek)
• Australia to Revise Employment Data (WSJ)
• Americans Living Longer as Fewer Die From Heart Disease, Cancer (BBG)
• A 401(k) Conundrum: Can You Make Cash Pile Last for Life?  (BBG)
• China Services Sector Slows in September (WSJ)
• Constancio Sees $1.3 Trillion Limit for ECB Asset Program (BBG)
• Buffett Says ‘No-Brainer’ to Get Mortgage to Short Rates (BBG)
• Europe Sacrifices a Generation With 17-Year Unemployment Impasse (BBG)
• Finance minister warns Russia can't afford military spending plan (Reuters)
• Traders Losing Faith Send Sears Bearish Bets to Record (BBG)
• Valeant, Pershing Square to Boost Allergan Bid (WSJ)
• Trading Houses May Sit on $13 Billion Risk, Daiwa Says (BBG)

Overnight Media Digest

WSJ

* U.S. stocks tumbled on escalating concerns about global growth prospects, especially in Europe, as new data showed deepening stresses in the continent's economy and remarks from a leading policy maker highlighted the lack of consensus in dealing with the slowdown. (on.wsj.com/1sckWDk)

* Turkey and the United States warned that a major Syrian border city was in imminent danger of falling to Islamic State, with the two countries putting the onus on the other to halt the extremist group's advance. (on.wsj.com/1qemBT0)
 
* Wal-Mart is cutting health insurance for another 30,000 part-time workers and raising premiums for its other employees, as U.S. corporations push to contain costs in the wake of the federal health-care law. (on.wsj.com/1t1VimL)

* Valeant Pharmaceuticals and activist investor William Ackman plan to boost their offer for Allergan Inc by $15 per share, trying to keep the Botox maker from striking a rival deal. (on.wsj.com/1pOvVxG)

* Puerto Rico is expected to sell up to $1.2 billion of notes this week to large banks that have agreed to hold the debt until it matures in June, forestalling the heavy selling that followed a March bond issue. (on.wsj.com/1y4ntme)

* Several companies that agreed this year to buy others have ended up as the prey - targeted by even bigger fish seeking to gobble them up before their own purchases close. (on.wsj.com/ZssINK)

* Ivan Glasenberg has been digging around for another big deal. The former coal trader, veteran deal maker and now one of the world's biggest mining moguls, has made his boldest move yet to expand trading and mining company Glencore. He approached Rio Tinto about a merger that could have created the world's biggest mining company. (on.wsj.com/1oPfq4c)

* Timothy Geithner, one of the highest-ranking government officials during the financial crisis, testified in federal court Tuesday that he thought a failure of American International Group Inc would have had catastrophic consequences. (on.wsj.com/1pOyzn8)

* The world's largest buyout firm will curb a controversial fee practice that is under scrutiny from regulators and investors. Blackstone Group LP, which manages $279 billion, no longer will pocket extra consulting fees when selling or taking public companies it owns, according to a written exchange between the company and one of its fund investors. (on.wsj.com/1yLEXVR)

FT

* A senior banker at a leading British bank has pleaded guilty to in connection with the manipulation of Libor benchmark interest rates, becoming the first person in the UK to plead guilty to such an offence.

* Goldman Sachs has been ordered to pay the Libyan Investment Authority (LIA) 200,000 pounds (321,900 US dollar) in legal costs as part of a lawsuit brought by the fund over $1 billion in trades that ended up worthless.

* Glencore Plc said it is no longer actively considering a merger with Rio Tinto Plc. Glencore had made an informal offer in July which was put before Rio's board. The offer was unanimously rejected and Glencore was informed in August.

* Two directors of HSBC Holdings Plc's British business are set to leave the bank because they are unhappy with new rules that can result in jail sentences for senior bankers.

* Dutch lender Rabobank has suspended two foreign exchange traders in London following an internal investigation into the bank's currency trading practices.

NYT

* Valeant Pharmaceuticals International Inc and Pershing Square Capital Management are planning to raise their offer to acquire the Botox maker Allergan Inc by $15 a share, according to a person with knowledge of the matter. (http://nyti.ms/10Nmby5)

* A judge in London's High Court ordered Goldman Sachs Group Inc on Tuesday to pay some of the Libyan Investment Authority's costs for fighting the bank's efforts to dismiss a lawsuit that the authority filed against Goldman in January. (http://nyti.ms/1ncqH33)

* Coty Inc said on Tuesday that it had made a binding offer to buy the Bourjois cosmetics brand from Chanel for 15 million Coty shares, or about $239 million. (http://nyti.ms/1vRY2ji)

* The International Monetary Fund, showing heightened concern over a slowing world economy, said on Tuesday that cash-rich countries like Germany needed to step up large public investments to help keep the flagging global recovery on track. (http://nyti.ms/1yK5EKk)

* As Europe confronts new signs of economic trouble, national leaders, policy makers and economists are starting to challenge as never before the guiding principle of the Continent's response to six years of crisis: Germany's insistence on budget austerity as a precondition to healthy growth. (http://nyti.ms/1t20SW8)

* In July, Ivan Glasenberg, chief executive of Glencore Plc approached the London-based mining company Rio Tinto Plc, about a merger with Glencore, both companies acknowledged this week. Uniting Glencore and Rio Tinto, with a combined market value of $160 billion, would create an equal to BHP Billiton Plc, the world's largest natural resources company. (http://nyti.ms/ZQEm5L)

Britain

The Times

FIRSTGROUP LOSES SCOTRAIL FRANCHISE TO ABELLIO

The Scottish government has awarded the £2.5 billion ScotRail train franchise to an offshoot of the Dutch railways in the latest blow to the incumbent operator, FirstGroup PLC . (http://thetim.es/1t1N9i9)

EUROPE STALLS AS BOOMING BRITAIN TAKES OFF - IMF

Britain is booming and leaving behind most of the world's leading economies, the International Monetary Fund declared yesterday while sounding the alarm about the prospects for the eurozone. (http://thetim.es/1uyMYt8)

The Guardian

BRITISH BANKER PLEADS GUILTY TO LIBOR RIGGING

A senior employee from a leading UK bank has pleaded guilty to a Libor-fixing conspiracy charge brought by the Serious Fraud Office. The man, who cannot be named for legal reasons, faces up to 10 years in jail. On Friday he became the first banker to plead guilty to criminal manipulation of Libor in Britain. (http://bit.ly/1vQQqgM)

RISE IN LUXURY LONDON HOMES COULD TRIGGER CONSTRUCTION CRUNCH

A record number of luxury homes worth 60 billion stg are being built in London, creating a construction crunch that could lead to many of them being delayed or even ditched, a report shows. (http://bit.ly/1nYQpJl)

The Telegraph

EBOLA: NHS HOSPITALS PUT ON STANDBY

Major NHS hospitals across the country have been put on standby, as health officials warn of a "real risk" that the deadly Ebola virus could spread to Britain. Prime Minister, David Cameron will convene a meeting of the Government's Cobra emergency committee on Wednesday morning to discuss the growing threat to the UK from the spread of Ebola. (http://bit.ly/ZcxGxC)

EE TO LAUNCH TV SET-TOP BOX

EE, Britain's biggest mobile operator, is expected to introduce its own set-top box on Wednesday as it aims to keep pace with telecoms rivals such as BT Group PLC and TalkTalk Telecom Group PLC, who have been gaining customers with their moves into television. (http://bit.ly/1sat2fx)

Sky News

HSBC DIRECTORS QUIT IN PROTEST AT JAIL THREAT

Two directors of HSBC Holdings PLC's UK arm are poised to quit in protest at new Bank of England rules that pave the way for lengthy jail sentences to be imposed on senior managers of failed lenders. (http://bit.ly/1nbz3Il)

CABLE TURNS UP THE HEAT ON ALL-MALE BOARDS

Britain's biggest pubs operator and one of the country's largest sportswear retailers are to be targeted by Vince Cable in a renewed focus on bolstering boardroom diversity. Sky News understands that the Business Secretary plans to write to the chairmen of approximately 30 FTSE-350 companies which have all-male boards more than three years after an initiative was launched to increase the number of women directors. (http://bit.ly/ZQsqkw)

The Independent

TESCO PROBE: FIFTH EXECUTIVE SUSPENDED AMID INVESTIGATION INTO 250 MLN STG PROFIT HOLE

A fifth Tesco PLC executive has been suspended as part of the on-going 250 million stg black hole accounting scandal. Kevin Grace, the supermarket's commercial director, was removed from his position yesterday as investigators from Deloitte and law firm Freshfields continued combing through the emails of every buyer at the company's head office. (http://ind.pn/Zskgy4)

EBOLA OUTBREAK: BRITAIN NEEDS TO START SCREENING FOR THE VIRUS, SAYS HOME OFFICE MINISTER

A Home Office minister has said Britain should consider introducing screening for Ebola carriers arriving at airports, after a Spanish nurse became the first person to have caught the virus in Europe. (http://ind.pn/1s7LzsA)

Corporate Finance

* Telecom Italia's Brazilian unit is considering investing an extra 750 million euros ($948.53 million) over three years to improve its local mobile phone network, according to a person with knowledge of the plan, as the Italian company tries to regain momentum in a key market.

* Deutsche Bank is preparing to sell a $2 billion portfolio of U.S. commercial real estate loans as the North American property markets heat up, a source familiar with the matter said on Tuesday.

 
* Dutch private equity group Waterland is in exclusive talks to buy Median Kliniken, Germany's largest private sector chain of health rehabilitation clinics, two people familiar with the matter told Reuters.

* The trustee of Hubbell Inc's controlling family trusts is evaluating alternatives for their holdings, which may lead to a shakeup at the $7.2 billion U.S. electrical equipment maker, according to people familiar with the matter.

* Irish cement maker CRH Plc has teamed up with Mexican rival Cemex to explore a bid for all the assets industry giants Lafarge and Holcim must sell to get the go-ahead for their planned merger from competition watchdogs, according to several people familiar with the matter.

* Telecom operator Swisscom AG is considering a possible sale of its Italian broadband firm Fastweb, which is worth up to 5 billion euros and has been a target for Vodafone , sources familiar with the situation said.

* Actavis Plc plans to approach Allergan Inc again about a potential merger, as the Botox maker warms up to the possibility of a sale, people familiar with the matter said on Tuesday.

* Buyout firm Vista Equity Partners is in talks to acquire TransFirst Inc, a payment processing company that has filed for an initial public offering, for as much as $1.5 billion including debt, according to people familiar with the matter.

* Germany's Bertelsmann plans to increase its stake in book publisher Penguin Random House as early as next year, Bloomberg News reported, citing people familiar with the matter.

* Global miner Anglo American Plc is planning to initiate the sale of its three smallest copper mines in Chile and a smelter worth $1 billion by end of the year, Bloomberg reported, citing sources familiar with the matter.

* Security software maker Symantec Corp is in advanced talks to split its business into two entities - one that sells security programs and another that does data storage, Bloomberg reported, citing people with knowledge of the matter.

* Royal Dutch Shell Plc's 327,000-barrel-per-day (bpd), joint-venture Deer Park, Texas, refinery has pushed back the planned restart of its 70,000 bpd gasoline-producing fluidic catalytic cracking unit to the end of the week, sources familiar with refinery operations said on Tuesday.

* U.S. private equity fund TA Associates is in advanced talks with the promoters of Famy Care Ltd and private equity investor AIF Capital to purchase a 35 percent stake in the unlisted Mumbai-based generic oral contraceptive pills and hormone drug maker for $200 million, the Economic Times reported, citing people familiar with the deal. (bit.ly/1oP6V9o)

* India's largest power producer NTPC Ltd is evaluating a proposal to buy stranded power assets worth $5 billion, in contrast with its earlier strategy of taking the greenfield route to add capacity, the Times of India reported, citing sources. (bit.ly/1CTvwSQ)

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
FOMC minutes for September 16-17 meeting to be released at 14:00
 
ANALYST RESEARCH

Upgrades

ADTRAN (ADTN) upgraded to Buy from Neutral at Goldman
Calamos (CLMS) upgraded to Market Perform from Underperform at Keefe Bruyette
Calix (CALX) upgraded to Buy from Neutral at Goldman
Cogent (CCOI) upgraded to Outperform from Market Perform at Raymond James
Coty (COTY) upgraded to Neutral from Sell at B. Riley
Greif (GEF) upgraded to Outperform from Market Perform at Wells Fargo
PHH Corp. (PHH) upgraded to Outperform from Market Perform at Keefe Bruyette
Royal Gold (RGLD) upgraded to Overweight from Underweight at HSBC
Rush Enterprises (RUSHA) upgraded to Strong Buy from Market Perform at Raymond James
Vocera (VCRA) upgraded to Outperform from Market Perform at FBR Capital

Downgrades

Aegion (AEGN) downgraded to Hold from Buy at Stifel
GoPro (GPRO) downgraded to Neutral from Overweight at Piper Jaffray
National Oilwell (NOV) downgraded to Neutral from Overweight at HSBC
Ryland Group (RYL) downgraded to Underweight from Hold at KeyBanc
Silver Spring (SSNI) downgraded to Neutral from Buy at Goldman
Walter Energy (WLT) downgraded to Equal Weight from Overweight at Morgan Stanley

Initiations

ARM Holdings (ARMH) initiated with an Outperform at Northland
ARRIS (ARRS) initiated with a Neutral at Goldman
Affimed Therapeutics (AFMD) initiated with a Buy at Jefferies
Altera (ALTR) initiated with a Market Perform at Northland
Atlas Resource Partners (ARP) initiated with a Market Perform at Raymond James
Cadence Design (CDNS) initiated with an Outperform at Northland
Colony Financial (CLNY) initiated with a Neutral at Sterne Agee
Cummins (CMI) initiated with a Buy at Stifel
Euroseas (ESEA) initiated with a Buy at Maxim
GrubHub (GRUB) initiated with an Outperform at JMP Securities
Inphi (IPHI) initiated with an Outperform at Northland
Intel (INTC) initiated with a Market Perform at Northland
McKesson (MCK) initiated with a Buy at Citigroup
Power Integrations (POWI) initiated with an Outperform at Northland
Tesla (TSLA) initiated with a Neutral at Tigress Financial
 
COMPANY NEWS

Yum! Brands (YUM) reported Q3 China SSS down 14%. In an update on China activity, the company said "While sales are rebounding, they continue to be negative. Our brands have proven resilient over time and we expect this to be the case with this situation as well"
TheStreet (TST) announced a definitive agreement to acquire Management Diagnostics for approximately $21M
Kraft Foods (KRFT) raised quarterly dividend to 55c from 52.5c per share
 
EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Costco (COST)
 
Companies that missed consensus earnings expectations include:
Yum! Brands (YUM), Mistras (MG)
 
Companies that matched consensus earnings expectations include:
Landec (LNDC)
 
Yum! Brands (YUM) lowers FY14 EPS growth ex-items to 6%-10%
Landec (LNDC) sees FY16 net income increasing 70% vs. FY15 to $1.00 per share
Landec (LNDC) expects FY15 net income to decrease 15% vs last year, consensus 70c
Interface (TILE) sees Q3 EPS ex-charge 12c-14c, consensus 25c
 
NEWSPAPERS/WEBSITES

Symantec (SYMC) in advanced talks to split company in two, Bloomberg reports
Actavis (ACT) plans new approach to Allergan (AGN), Reuters reports (VRX, SLXP)
Valeant (VRX), Pershing Square plan to raise Allergan (AGN) bid by $15 a share, WSJ says
GT Advanced (GTAT) bankruptcy hearing scheduled for Thursday, Reuters reports (AAPL)
Cisco's (CSCO) reorganization affects up to 25,000 employees, Business Insider reports
Yahoo (YHOO) lays off 400 employees in India, WSJ reports
Container Store (TCS) still looks expensive, Barron's says
 
SYNDICATE

Dynegy (DYN) 22.5M share Secondary priced at $31.00
Premier (PINC) to conduct direct offering on behalf of selling stockholders
ZaZa Energy (ZAZA) files to sell 2.98M shares for warrant holders

• "Soaring consumer confidence" - How the Economy Is Stoking Voter Anger at Incumbent Governors (WSJ)
• Euro zone deflation worries shield German Bunds from upbeat Fed (Reuters)
• Greece’s Euro Dilemma Is Back as Minister Sees Volatility (BBG)
• Ukraine gas supplies in doubt as Russia seeks EU payment deal (Reuters)
• Sterling Lads Chats Show FX Traders Matching Fix Orders (BBG)
• NATO Tracks Large-Scale Russia Air Activity in Europe (WSJ)
• U.K. SFO Charges Ex-Tullett Prebon Broker in Libor-Rigging Probe (BBG)
• Jerusalem on edge after shooting of rabbi (FT)
• Israeli police kill Palestinian suspected of shooting far-right activist (Reuters)
• Samsung seeks smartphone revamp to arrest profit slide (Reuters)
• Barclays sets aside £500m for forex probe (FT)
• Maine nurse fights Ebola quarantine, says will not be bullied (Reuters)
• Why Oil Prices Went Down So Far So Fast (BBG)
• Washington state support for gun control measure strong before vote (Reuters)
• Microsoft launches wearable fitness device for $199 (Reuters)

Overnight Media Digest

WSJ

* The Federal Reserve said it would end its long-running bond-purchase program, concluding a historic experiment that stirred disagreement among policy makers, economists and investors about its impact even though the central bank said it helped accomplish its goal of reducing unemployment. (http://on.wsj.com/13eYOPn)

* Russian military aircraft conducted aerial maneuvers around Europe this week on a scale seldom seen since the end of the Cold War, prompting NATO jets to scramble in another sign of how raw East-West relations have grown. (http://on.wsj.com/1nS0Z4t)

* The two-year anniversary of superstorm Sandy was marked across the region Wednesday by somber speeches and events that put a spotlight on the rebuilding projects happening since the devastating storm. (http://on.wsj.com/1E4azVI)

* The Obama administration issued new rules that threaten to strip funding from thousands of for-profit college programs, part of a White House attempt to address college costs and rein in student debt, which has doubled since 2007. (http://on.wsj.com/1024GcQ)

* Oil prices would need to fall at least another $20 a barrel to choke off the U.S. energy boom, industry experts say, though some smaller American producers would face serious problems from a more modest decline. (http://on.wsj.com/1q1cdzj)

* China is taking a step toward easing its grip on credit cards, potentially allowing foreign companies like Visa, MasterCard and other electronic payment processors to have a greater presence there. (http://on.wsj.com/1DzN9FG)

* The Securities and Exchange Commission plans to open an inquiry into American Realty Capital Properties Inc's accounting, according to a person familiar with the matter. (http://on.wsj.com/1q0bgY1)

* Citing a less favorable outlook for inflation, Brazil's central bank on Wednesday raised its benchmark interest rate, in a move that wasn't expected by markets. (http://on.wsj.com/1zLYKop)

* Fiat Chrysler Automobiles NV will spin off Ferrari through an initial public offering next year as Chief Executive Sergio Marchionne seeks to unlock the value of the sports-car brand and fund an ambitious five-year plan. (http://on.wsj.com/1p4lvQa)

* European prosecutors and tax authorities are expanding an investigation into complex stock trades that global banks allegedly used to help their clients fraudulently earn tax rebates, according to government officials and lawyers familiar with the probe. The investigation, being led by German prosecutors and tax officials, has recently broadened to involve tax authorities and prosecutors in other countries. (http://on.wsj.com/1wHsYFr)

FT

The heated arguments over Britain's 1.7 billion pounds (2.72 billion US dollar) bill for extra EU budget contributions have shadowed the fact that Britain's net payment to Brussels have almost doubled to over 8 billion pounds over the last five years.

John Manzoni, the new chief executive of the British civil service, will step down as a board member of brewer SABMiller Plc next summer after a group of 70 charities and medical professionals raised serious concerns that the brewery job was "inexplicable and troubling" and showed a "direct conflict of interest with British public health policy goals."

Britain's Serious Fraud Office (SFO) has added tensions to the supermarket chain Tesco Plc's accounting issues by launching a criminal investigation. Tesco said in a statement that it will co-operate with the SFO's investigation. Royal Bank of Scotland Group Plc has warned that about 16,500 customers have had more than 1 million pounds taken away from their bank accounts by brokers offering payday loans since July.

NYT

* Microsoft Corp has created a wrist-worn fitness device, Microsoft Band, and a related online service, Microsoft Health, that will analyze the data from the band and other devices to help people with their fitness goals. Microsoft is charging $199 for the device. (http://nyti.ms/1p4ENF0)

* Facing pressure from supporters of Apple Inc's new mobile payment system, the consortium of major retailers, Merchant Customer Exchange, creating a rival system said on Wednesday that it might adjust its strategy. (http://nyti.ms/10AcNOu)

* The Food and Drug Administration said on Wednesday that it had approved Pfizer Inc's vaccine for a dangerous strain of meningitis that caused outbreaks last year at Princeton and the University of California, Santa Barbara. (http://nyti.ms/1rTmcaC)

* Facing increasing scrutiny of how it handled the recall of dangerously defective airbags, the nation's auto safety regulator, National Highway Traffic Safety Administration, sent a letter on Wednesday to 10 major automakers and Takata Corp , the airbags' maker, urging a faster response. (http://nyti.ms/1FXD4Xf)

* Fiat Chrysler Automobiles said on Wednesday that it planned to spin off Ferrari, the Italian luxury sports car maker, listing its shares in New York and possibly in Europe. (http://nyti.ms/13hgtG4)

Canada

THE GLOBE AND MAIL

** The Conservative government will announce an income-splitting tax break for parents on Thursday, sources say. The measure will allow the higher-earning parent of children up to 18 years of age to transfer as much as C$50,000 ($44,639) of income to the lower-earning spouse for tax purposes. (http://bit.ly/1tRRkNk)

** The Toronto District School Board has officially severed its ties to a Confucius Institute subsidized and controlled by the government of China. Trustees overwhelmingly voted on Wednesday night in favor of terminating an agreement that would have taught elementary students Mandarin and other cultural programs controlled by China's Ministry of Education. (http://bit.ly/1tEO9XZ)

** A 30-year-old assault-rifle collector from Pakistan has been arrested on allegations that he is a terrorist threat to Canada. The new case shows how the Canadian government's approach to suspected extremists may be evolving. (http://bit.ly/1q2bca9)

NATIONAL POST

** Bank of Canada Governor Stephen Poloz estimates that if the low price of oil persists, it will knock a quarter-point off the growth of Canada's gross domestic product in 2015. (http://bit.ly/1yJ76cp)

** The shooter in last week's deadly attack in Ottawa was a criminal, but not a terrorist, according to New Democratic Party Leader Tom Mulcair. His comments were met with immediate condemnation from Conservatives and the leader of the Liberal party. (http://bit.ly/1tjGNcz)

** A security alert sent to federal public servants at the height of last week's attack in Ottawa was in English only, which the country's languages watchdog says represents a "critical failure" during a potential life-and-death situation. (http://bit.ly/1E4Q0IZ)

China

CHINA SECURITIES JOURNAL

- Net profits at nine listed banks in the first three months of the year rose 9 percent from a year early, but their non-performing loan ratios jumped 35.5 percent, according to the newspaper's calculations.

- The World Bank said in a report that China's economic growth is expected to slow to 7.4 percent for this year.

CHINA DAILY

- A credible and trusted judiciary is the last line of defence for fairness and justice in society, an editorial said. Whether or not the Communist Party's latest decision to govern in accordance with law can bear fruit rests ultimately on whether or not it can build a government which is in awe of the law, it said.

SHANGHAI DAILY

- China's twin-engine ARJ21 regional jet began a month-long set of trial flights at more than 10 airports in the country's southwest to test its reliability before starting commercial flights early next year.

PEOPLE'S DAILY

- Cadres and the masses, and especially leaders at all levels, should take the road of socialism with Chinese characteristics and the rule of law, and promote the national governance system and the modernization of governance to achieve the great Chinese dream of the rejuvenation of the Chinese nation and to provide effective legal protections, an editorial said.

Britain

The Times

DIAGEO PUTS 50 MLN POUND NEW DISTILLERY ON ICE Plans by Diageo Plc for a new 50 million pound ($79.87 million) malt whisky distillery at Teaninich, in the Scottish Highlands, have been put on hold as the biggest Scotch whisky maker responds to a slowdown in demand for a dram around the world. The Johnnie Walker and J&B owner has also delayed investments in some of its existing distilleries, including an 18 million pound expansion of the Mortlach distillery in Speyside and a 30 million pound project at Clynelish distillery in Sutherland. (http://thetim.es/1Duz1xw) HEATHROW FEELS THE PINCH AS IT AWAITS EXPANSION DECISION

Heathrow, Europe's largest airport, is running out of steam, according to the latest financial and operational data, as it awaits a decision on whether it will be allowed to build at least one new runway. Five of its seven key markets are slowing, rate of spending by passengers has been pegged back and the airport is braced for a significant brake in revenues from charging airlines as a tough five-year regulatory settlement kicks in. (http://thetim.es/1sHpm04)

The Guardian

CRIMINAL INVESTIGATION LAUNCHED INTO TESCO'S ACCOUNTING Britain's Serious Fraud Office has launched a formal criminal investigation into accounting practices at Tesco Plc, which led to a 263 million pound profit overstatement at Britain's biggest retailer. The inquiry, which was confirmed by the watchdog on Wednesday, will supercede an investigation by the Financial Conduct Authority (FCA), the financial regulator, which has been halted with immediate effect. It is not clear whether it will affect the launch of an inquiry by the accountancy watchdog, the Financial Reporting Council (FRC), which is also being considered. (http://bit.ly/1E1qfcu)

YORKSHIRE BUILDING SOCIETY FINED 4 MLN STG FOR UNFAIR TREATMENT OF BORROWERS Britain's financial watchdog Financial Conduct Authority has fined Yorkshire Building Society 4.1 million pounds for unfairly treating mortgage borrowers when they were struggling with repayments. The building society is repaying a total of 8.4 million pounds to 34,000 mortgage customers. (http://bit.ly/1u99bjs)

The Telegraph

TESCO TO BE INVESTIGATED BY SERIOUS FRAUD OFFICE

The Serious Fraud Office is to investigate Tesco over the accounting irregularities that created a 263 million pound shortfall in the company's profits. The SFO has notified Tesco that it will launch a formal criminal investigation into accounting practices at the company. The intervention by the SFO heightens the crisis facing Britain's biggest retailer, which attempted to draw a line under the accounting scandal when it presented interim results last week. It means that the company and individuals could face criminal charges. As a result of the SFO's intervention, the Financial Conduct Authority will halt its own investigation into Tesco. (http://bit.ly/1thgnIp)

JAGUAR LAND ROVER TO BUILD DISCOVERYS IN BRAZIL

British luxury carmaker Jaguar Land Rover has announced that its Discovery Sport will be one of the first vehicles to be built at its new plant in Brazil as the company looks to improve its penetration into foreign markets. The company said the plant at Itatiaia, in the west of South American country, will have the capacity to build 24,000 vehicles a year once production starts there in 2016. The plant will initially create 400 jobs and this is expected to near double by the end of the decade. A further 1,000 jobs are expected to be completed created in the local supply chain. (http://bit.ly/1E3FhOU)

EXITING UK IS 'ABSOLUTE PRIORITY', SAYS CLYDESDALE AND YORKSHIRE BANK OWNER

The Australian owner of Clydesdale and Yorkshire banks has made exiting Britain its "absolute priority", and is exploring options that could see the two lenders floated on the stock market. National Australia Bank said its "clear focus" is on its home market and New Zealand, and highlighted the need for "greater urgency" in dealing with "low-returning assets". Clydesdale and Yorkshire have dragged down the wider group in recent years, with the crisis-hit British economy faring much worse than those of Australia and New Zealand. (http://bit.ly/1zLrBth)

Sky News

BRITISH BANKS TO TAKE 1 BLN STG HIT AS FOREX DEAL LOOMS

Three of the Britain's biggest banks are poised to set aside roughly 1 billion pound for settlements with regulators during the next week following a probe into the abuse of critical foreign exchange benchmarks. Barclays Plc, HSBC holdings Plc and Royal Bank of Scotland Group Plc plan to make the aggregate provision as part of their third-quarter results during the next week. (http://bit.ly/1FW9y42) FORMER BBC CHIEF TO JOIN STATE ASSETS BODY

A former BBC executive will on Thursday be appointed to the board of the body which oversees state-owned assets weeks before the completion of an inquiry into how such businesses are sold. Caroline Thomson, who stepped down as the BBC's chief operating officer in 2012, will become a non-executive director of the Shareholder Executive. (http://bit.ly/1wGKnOL)

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Jobless claims for week of October 25 at 8:30--consensus 280K
Q3 GDP at 8:30--consensus up 3.0%

ANALYST RESEARCH

Upgrades

Ally Financial (ALLY) upgraded to Buy from Hold at Deutsche Bank
Cree (CREE) upgraded to Neutral from Underperform at BofA/Merrill
Finish Line (FINL) upgraded to Overweight from Neutral at Piper Jaffray
Grand Canyon (LOPE) upgraded to Overweight from Neutral at Piper Jaffray
Ignite Restaurant (IRG) upgraded to Market Perform from Underperform at Raymond James
Lowe's (LOW) upgraded to Buy from Neutral at Goldman
MakeMyTrip (MMYT) upgraded to Buy from Hold at Deutsche Bank
MicroStrategy (MSTR) upgraded to Overweight from Equal Weight at First Analysis
PG&E (PCG) upgraded to Neutral from Sell at Goldman
STMicroelectronics (STM) upgraded to Neutral from Sell at UBS
Sealed Air (SEE) upgraded to Market Perform from Underperform at Wells Fargo
Sprint (S) upgraded to Neutral from Underperform at Credit Suisse
SunPower (SPWR) upgraded to Buy from Hold at Canaccord
Take-Two (TTWO) upgraded to Buy from Hold at Brean Capital
Visa (V) upgraded to Outperform from Market Perform at FBR Capital

Downgrades

Associated Estates (AEC) downgraded to Hold from Buy at Wunderlich
C.H. Robinson (CHRW) downgraded to Underperform from Neutral at Credit Suisse
CNOOC (CEO) downgraded to Hold from Buy at Jefferies
Carlyle Group (CG) downgraded to Neutral from Buy at BofA/Merrill
Dixie Group (DXYN) downgraded to Outperform from Strong Buy at Raymond James
DreamWorks Animation (DWA) downgraded to Neutral from Buy at Janney Capital
Edison International (EIX) downgraded to Neutral from Buy at UBS
Evolving Systems (EVOL) downgraded to Neutral from Buy at B. Riley
Haverty Furniture (HVT) downgraded to Market Perform from Outperform at Raymond James
Healthcare Trust (HTA) downgraded to Hold from Buy at Wunderlich
Kraft Foods (KRFT) downgraded to Neutral from Outperform at Credit Suisse
PAREXEL (PRXL) downgraded to Neutral from Outperform at RW Baird
SPX Corp. (SPW) downgraded to Market Perform from Outperform at FBR Capital
SPX Corp. (SPW) downgraded to Neutral from Buy at Goldman
Southern Company (SO) downgraded to Underperform from Neutral at BofA/Merrill
Trustmark (TRMK) downgraded to Underperform from Market Perform at Keefe Bruyette

Initiations

Achaogen (AKAO) initiated with a Buy at Cantor
Brown Shoe (BWS) initiated with an Underweight at Morgan Stanley
Citizens Financial (CFG) initiated with a Neutral at RW Baird
DSW (DSW) initiated with an Underweight at Morgan Stanley
Deckers Outdoor (DECK) initiated with an Overweight at Morgan Stanley
Genesco (GCO) initiated with an Equal Weight at Morgan Stanley
Kate Spade (KATE) initiated with a Neutral at Mizuho
Skechers (SKX) initiated with an Overweight at Morgan Stanley
Southwestern Energy (SWN) initiated with an Outperform at Imperial Capital
Steven Madden (SHOO) initiated with an Equal Weight at Morgan Stanley
Wolverine World Wide (WWW) initiated with an Equal Weight at Morgan Stanley

COMPANY NEWS

Shutterfly (SFLY) said it will "remain independent at this time"
Royal Dutch Shell (RDS.A) said Charles Holliday will be next chairman
Samsung (SSNLF) sees demand for smartphone, tablet to increase during Q4
Appellate court upheld $203M judgement against Wells Fargo (WFC)
Novavax (NVAX) received FDA fast track designation for H7N9 VLP
Starboard Value urged RealD (RLD) board to engage in dialogue
Visa (V) authorized new $5B share repurchase program

EARNINGS

Companies that beat consensus earnings expectations last night and today include:

DreamWorks Animation (DWA), Strayer (STRA), Progressive Waste (BIN), PBF Energy (PBF), ExlService (EXLS), Banc of California (BANC), Gentherm (THRM), Auxilium (AUXL), Ball Corp. (BLL), Air Products (APD), Quintiles (Q), MEDNAX (MD), Cigna (CI), Aegion (AEGN), Methanex (MEOH), EnPro (NPO), Care.com (CRCM), Vector Group (VGR), Hudbay Minerals (HBM), Silicon Motion (SIMO), Atlantic Tele-Network (ATNI), Ensco (ESV), American Railcar (ARII), United Insurance (UIHC), Barrick Gold (ABX), Brookline Bancorp (BRKL), Range Resources (RRC), TriCo Bancshares (TCBK), California Water Service (CWT), Hyster-Yale Materials (HY), Oceaneering (OII), Noble Corp. (NE), Pilgrim's Pride (PPC), LifeLock (LOCK), Questar (STR), HomeTrust (HTBI), SS&C Technologies (SSNC), Curtiss-Wright (CW), Amerisafe (AMSF), CoStar Group (CSGP), Peregrine (PSMI), Macquarie Infrastructure (MIC), Murphy Oil (MUR), Retail Opportunity (ROIC), Image Sensing Systems (ISNS), Masimo (MASI), Digital River (DRIV), CACI (CACI), CBRE Group (CBG), Glu Mobile (GLUU), Avis Budget (CAR), Moelis (MC), Quantum (QTM), Hornbeck Offshore (HOS), MobileIron (MOBL), Lincoln National (LNC), Superior Energy (SPN), AXIS Capital (AXS), Assurant (AIZ), Smith Micro (SMSI), Fleetmatics (FLTX), RingCentral (RNG), FormFactor (FORM), Anika Therapeutics (ANIK), Con-way (CNW), McGrath RentCorp (MGRC), Weight Watchers (WTW), Grand Canyon (LOPE), Westell Technologies (WSTL), Veeco (VECO), Support.com (SPRT), Arch Capital (ACGL), Cempra (CEMP), Charles River Labs (CRL), Vistaprint (VPRT), Legacy Reserves (LGCY), MedAssets (MDAS), Credit Acceptance (cacc), Cavium (CAVM), Danaos (DAC), Cardtronics (CATM), Pacific Ethanol (PEIX), Capital Product (CPLP), Take-Two (TTWO), JDSU (JDSU), Insight Enterprises (NSIT), Calix (CALX), CTI BioPharma (CTIC), Carriage Services (CSV), Flextronics (FLEX), ARRIS (ARRS), RF Micro Devices (RFMD), Norwegian Cruise Line (NCLH), PAREXEL (PRXL), International Rectifier (IRF), Hanesbrands (HBI), Allstate (ALL), F5 Networks (FFIV), MetLife (MET), Visa (V), NCI, Inc. (NCIT), Akamai (AKAM), Whiting Petroleum (WLL), Acadia Healthcare (ACHC), Silicon Graphics (SGI), Forrester (FORR), Blackbaud (BLKB), QuickLogic (QUIK), Cardiovascular Systems (CSII), Cirrus Logic (CRUS)

Companies that missed consensus earnings expectations include:

Apollo Global (APO), NiSource (NI), PBF Logistics (PBFX), Bunge (BG), Harte-Hanks (HHS), LPL Financial (LPLA), USA Compression (USAC), M.D.C. Holdings (MDC), Time Warner Cable (TWC), Xcel Energy (XEL), AudioCodes (AUDC), Marlin Midstream (FISH), Terex (TEX), Kraton Performance (KRA), NewMarket (NEU), Sturm, Ruger (RGR), Agnico-Eagle (AEM), Kirby (KEX), Kearny Financial (KRNY), Service Corp. (SCI), Haverty Furniture (HVT), ARMOUR Residential (ARR), Fox Chase Bancorp (FXCB), PGT, Inc. (PGTI), Alon USA Partners (ALDW), Access Midstream (ACMP), Intersil (ISIL), Aspen Insurance (AHL), General Cable (BGC), KapStone (KS), Penn Virginia (PVA), TTM Technologies (TTMI), K2M Group (KTWO), Comfort Systems USA (FIX), Roadrunner (RRTS), Yamana Gold (AUY), Alliance Fiber Optic (AFOP), Williams (WMB), Equinix (EQIX), TFS Financial  (TFSL), Martin Midstream Partners (MMLP), Accuray (ARAY), American Capital Mortgage (MTGE), Intrepid Potash (IPI), Shutterfly (SFLY), Rosetta Stone (RST), MDC Partners (MDCA), Ignite Restaurant (IRG), Heritage Financial (HBOS), Fortune Brands (FBHS), Unum Group (UNM)

Companies that matched consensus earnings expectations include:

Vical (VICL), Enterprise Products (EPD), Greenbrier (GBX), Triumph Group (TGI), Royal Gold (RGLD), Celadon Group (CGI), Cloud Peak (CLD), Hudson Technologies (HDSN), ManTech (MANT), Atmel (ATML), Trulia (TRLA), Steiner Leisure (STNR), QIAGEN (QGEN), Century Aluminum (CENX)

NEWSPAPERS/WEBSITES

HBO (TWX) sees opportunity to offer streaming option through Apple TV (AAPL), Xbox (MSFT), WSJ says (AMZN)
Microsoft (MSFT) reduces 3,000 jobs, completes workforce reduction plan, Reuters reports
Amazon.com (AMZN) opens overseas websites to Chinese consumers, China Daily says
Twitter's (TWTR) head of product engineering to leave company, Re/code reports
DHS says spies targeted control systems made by Siemens (SIEGY), GE (GE), WSJ reports

SYNDICATE

Acadia Realty Trust (AKR) files to sell 3.4M shares of common stock
Boot Barn (BOOT) 5M share IPO priced at $16.00
Carlyle Group (CG) files to sell 460K common units for holders
Chimerix (CMRX) announces commencement of $105M common stock offering
Chimerix (CMRX) files $150M common stock shelf
Facebook (FB) files to sell 162.7M shares for WhatsApp stockholders
Fifth Street Asset (FSAM) 6M share IPO priced at $17.00
Inogen (ingn) 2.1M share Secondary priced at $21.50
Western Gas Partners (WES) files to sell 7.5M common units

• Police officers' slaying raises pressure on New York mayor (Reuters)
• People Call for Cooling of Racial Tensions After Murder of NYPD Officers (BBG)
• The $6.3 Trillion Frenzy That Vanquished Treasury Bears (BBG)
• China Investigates Possible Stock-Price Manipulation (WSJ)
• Citigroup Was Wary of Metals-Backed Loans (WSJ)
• UPS Turns Parking Lots Into Sorting Centers to Add Speed (BBG)
• U.S. Move to Normalize Cuba Ties Boosts Firms’ Asset Claims (WSJ)
• Meredith Whitney’s Fund Said to Drop 11% as Office Put on Market (BBG)
• Railcar Bottleneck Looms for Oil (WSJ)
• Air China signs deal to purchase 60 Boeing B737 aircraft (Reuters)
• Ocwen Head to Resign in New York Settlement (WSJ)
• Uber business model faces legal scrutiny in Taiwan, Chinese mega city (Reuters)
• The World's Biggest Car Company Wants to Get Rid of Gasoline (BBG)
• U.S. gas prices fall to lowest since May 2009: Lundberg survey (Reuters)
• Condos Coming to NYC’s Long Island City After Rental Boom (BBG)

Overnight Media Digest

WSJ

* Now that the United States has moved to normalize relations with Cuba, the countries will have to deal with decades-old claims from companies like Office Depot Inc, whose property was taken after Fidel Castro took power in 1959. (http://on.wsj.com/1CmEcmS)

* One-third of the crude oil hauled from North Dakota's Bakken Shale region by railcars could be forced off the tracks and into expensive truck fleets in the next four years, according to a railcar-industry trade group. (http://on.wsj.com/13tJuxT)

* Walgreen Co, the largest U.S. drugstore chain, is going to find out if bigger means better, as it nears a shareholder vote on completing its planned merger with European counterpart Alliance Boots. (http://on.wsj.com/1Clkisq)

* Ferrovial SA abandoned a 1.02 billion Australian dollar ($831.91 million) takeover bid for Australia's Transfield Services Ltd, a major setback in the Spanish construction company's plan to compete for billions of dollars of new infrastructure projects Down Under. (http://on.wsj.com/1zmLq9m)

* Satellite-TV provider Dish Network Corp is no longer carrying 21st Century Fox Inc's Fox News Channel and Fox Business Network after the companies couldn't come to terms on a new distribution contract. (http://on.wsj.com/1wQNEM0)

* Xiaomi Corp is raising more than $1 billion in its latest round of funding, valuing the fast-growing Chinese smartphone maker at more than $45 billion and making the company one of the most valuable technology startups in the world, a person familiar with the matter said. (http://on.wsj.com/13ngyrh)

* The Obama administration is seeking assistance from China as U.S. officials craft President Barack Obama's promised response to North Korea's cyberattack on Sony Pictures, senior administration officials said over the weekend. (http://on.wsj.com/1AW2foC)

FT

* As the United States moves closer to taking Cuba off the list of state sponsors of terrorism, President Barack Obama said he would "review" whether to return North Korea to the list, part of a broader government response to a damaging cyber attack on Sony's Hollywood studio. (http://nyti.ms/1zan5yw)

* Advertisers increasingly want to be part of the 527 million people in China with smartphones. Next year companies are expected to spend more money on digital advertising than on television campaigns in China. (http://nyti.ms/1wcQ6Y0)

* FedEx Corp and United Parcel Service Inc are aiming to avoid last year's chaos, when a late surge in shipments and bad weather left many gifts to be delivered late. (http://nyti.ms/1GLUBks)

* China is turning the Xinjiang region into a national hub for oil, gas and coal as Uighurs struggle, resenting the reaping of their homeland's resources. (http://nyti.ms/1AwRv22)

* Russia derided the United States and Canada for imposing yet another round of economic sanctions over the Kremlin's policies in Ukraine, and pointed at President Obama's recent decision to normalize relations with Cuba as proof that sanctions were ultimately pointless. (http://nyti.ms/1wcP52g)

* Shaking hands and kissing foreheads, the monarchs of the Persian Gulf came together this month to declare that they had resolved an 18-month feud in order to unite against their twin enemies, Iran and the Islamic State. (http://nyti.ms/1Hn1iIb)

NYT

* As the United States moves closer to taking Cuba off the list of state sponsors of terrorism, President Barack Obama said he would "review" whether to return North Korea to the list, part of a broader government response to a damaging cyber attack on Sony's Hollywood studio. (http://nyti.ms/1zan5yw)

* Advertisers increasingly want to be part of the 527 million people in China with smartphones. Next year companies are expected to spend more money on digital advertising than on television campaigns in China. (http://nyti.ms/1wcQ6Y0)

* FedEx Corp and United Parcel Service Inc are aiming to avoid last year's chaos, when a late surge in shipments and bad weather left many gifts to be delivered late. (http://nyti.ms/1GLUBks)

* China is turning the Xinjiang region into a national hub for oil, gas and coal as Uighurs struggle, resenting the reaping of their homeland's resources. (http://nyti.ms/1AwRv22)

* Russia derided the United States and Canada for imposing yet another round of economic sanctions over the Kremlin's policies in Ukraine, and pointed at President Obama's recent decision to normalize relations with Cuba as proof that sanctions were ultimately pointless. (http://nyti.ms/1wcP52g)

* Shaking hands and kissing foreheads, the monarchs of the Persian Gulf came together this month to declare that they had resolved an 18-month feud in order to unite against their twin enemies, Iran and the Islamic State. (http://nyti.ms/1Hn1iIb)

Canada

THE GLOBE AND MAIL

** Dave McKay, chief executive of Royal Bank of Canada , believes his bank's earnings per share can still grow by 7 per cent next year despite plummeting oil prices and other lenders, such as Toronto-Dominion Bank,trimming down their short-term profit forecasts. The root of this optimism: The reawakening of the U.S. consumer. (http://bit.ly/1xaAdZk)

** Toronto Mayor John Tory predicts 2015 will be the year leaders of Canada's largest cities find common cause and a receptive audience for their message at other levels of government. Tory, who took office this month promising a new era of consensus-building, sees that mandate extending beyond city hall to his peers in other cities. (http://bit.ly/1wBqPvZ)

** The U.S. border agency said that a Canadian man was shot after allegedly pointing a handgun at guards at the Ambassador Bridge crossing between Windsor, Ontario, and Detroit. (http://bit.ly/1vfQSV8)

NATIONAL POST

** Randy Dawson, a managing principal with Navigator, a high-profile communications firm with long-held ties to the Progressive Conservative government, provided advice during the negotiations that culminated with the dramatic mass defection of nine Wildrose MLAs on Wednesday. (http://bit.ly/1AOEWgI)

** Royal Canadian Mounted Police are recommending charges against a man who they say struck a three-year-old boy in the face and abandoned

China

SOUTH CHINA MORNING POST

- Financial Secretary John Tsang Chun-wah wrote on his blog that he expects Hong Kong to have a financial surplus in each of the next three fiscal years, allowing the government to "save up" in advance for public housing plans without sacrificing other services. (http://bit.ly/13t9klM)

- Walter Kwok Ping-sheung, the eldest of the three billionaire Kwok brothers, says he will not return to directorship at the family-controlled real estate empire Sun Hung Kai Properties and he had great confidence in youngest brother Raymond Kwok Ping-luen, now the company's sole chairman. (http://bit.ly/1zSPAos)

- Macau luxury hotel complex builder Louis XIII Holdings said it raised HK$1.6 billion ($206.4 million) in a private placement of new shares and an issuance of convertible bonds. (http://bit.ly/13pRLCN)

THE STANDARD

- Mainland insurance companies have injected about 240 billion yuan into the securities market within one month in November, reflecting their bullish sentiment toward the A-share market in the long run, China Insurance Regulatory Commission data shows. (http://bit.ly/1v8AQv3)

HONG KONG ECONOMIC JOURNAL

- Property developer Kaisa Group Holdings Ltd said the processing of sale and purchase agreements for unsold units in four property projects under pre-sale in Shenzhen were blocked by relevant Chinese authority and that would have an adverse impact on the company's cash flow.

Read more: http://www.dailymail.co.uk/wires/reuters/article-2883094/PRESS-DIGEST-Ho...
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Britain

The Times

Energy companies given 1 bln pounds to keep the lights on

(http://thetim.es/1zSBUtF)

Nearly 1 billion pounds ($1.56 billion) of subsidies that will add 11.40 pounds a year to household bills have been given to energy companies to help to keep the lights on. Power stations that won new money under the "capacity market" scheme in a three-day auction this week were announced by the government yesterday.

AstraZeneca chief crosses fingers and plays down $45 bln vow

(http://thetim.es/1AvDlOI)

Pascal Soriot, Chief Executive of AstraZeneca has said that the company will be "lucky" to hit a $45 billion sales forecast that was central to the drug company's defence against a hostile takeover by Pfizer. He urged investors not to become fixated on the target, arguing that profit and product mix were more important.

The Guardian

Saudi, UAE oil ministers defend OPEC on falling oil prices

(http://bit.ly/1Co7YF0)

The oil ministers of Saudi Arabia and the United Arab Emirates have defended OPEC's decision not to cut production despite a glut, and blamed speculators and producers outside the cartel for the slump in prices.

Rochester by-election row could affect Cameron succession

(http://bit.ly/13pMJ9j)

Theresa May, the home secretary, has been warned by cabinet colleagues to act as a "team player" or risk damaging her chances of succeeding David Cameron as leader of the Conservative party.

The Telegraph

FCA asks banks to take forex rigging fines out of bonuses

(http://bit.ly/1za1HJv)

The Financial Conduct Authority (FCA) has told the banks at the centre of the foreign exchange rigging scandal that their huge fines should be funded out of this year's round of bonuses.

Tesco suppliers dragged into SFO investigation

(http://bit.ly/1wcveA9)

Leading UK suppliers to Tesco, including Diageo and Unilever, expect to be interviewed by the Serious Fraud Office as part of its investigations into accounting practices at the troubled supermarket giant.

Sky News

ITE Exhibits Move From Sanctions-Hit Russia

(http://bit.ly/1JDSTE4)

ITE Group, a London-listed exhibitions firm, will this week announce a 20 mln pound takeover of Breakbulk - a shipping and logistics intelligence provider, that will reduce its reliance on Russia amid the country's currency crisis and the ongoing impact of international sanctions.

Ambulances May Take Twice As Long, Memo Says

(http://bit.ly/1wTz1Y9)

Some patients who need an ambulance may soon have to wait longer for it to arrive even if they are classed as a serious case, under new proposals seen by Sky News.

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Chicago Fed national activity index for November at 8:30--consensus 0.23
Existing home sales for November at 10:00--consensus down 1.1% to 5.2M rate

ANALYST RESEARCH

Upgrades

ARAMARK (ARMK) upgraded to Top Pick from Outperform at RBC Capital
Brown Shoe (BWS) upgraded to Equal Weight from Underweight at Morgan Stanley

Downgrades

DuPont Fabros (DFT) downgraded to Hold from Buy at KeyBanc
Finish Line (FINL) downgraded to Neutral from Buy at Janney Capital
Seagate (STX) downgraded to Neutral from Buy at Longbow
Western Digital (WDC) downgraded to Neutral from Buy at Longbow

Initiations

AMC Networks (AMCX) initiated with an Outperform at Pacific Crest
AMSC (AMSC) initiated with an Outperform at Cowen
Axalta Coating (AXTA) initiated with a Buy at Deutsche Bank
Axalta Coating (AXTA) initiated with a Buy at Nomura
Axalta Coating (AXTA) initiated with a Neutral at Goldman
Axalta Coating (AXTA) initiated with an Overweight at JPMorgan
Brown Shoe (BWS) initiated with a Hold at Jefferies
C.R. Bard (BCR) initiated with a Market Perform at Wells Fargo
Coach (COH) initiated with a Neutral at Mizuho
Discovery (DISCA) initiated with a Sector Perform at Pacific Crest
Energous (watt) initiated with a Buy at Roth Capital
Hortonworks (HDP) initiated with an Outperform at JMP Securities
Macquarie Infrastructure (MIC) initiated with an Overweight at JPMorgan
Michael Kors (KORS) initiated with a Neutral at Mizuho
PolyOne (POL) initiated with a Buy at SunTrust
STORE Capital (STOR) initiated with a Neutral at Credit Suisse
Scripps Networks (SNI) initiated with a Sector Perform at Pacific Crest
Shoe Carnival (SCVL) initiated with a Hold at Jefferies
Southwestern Energy (SWN) initiated with a Neutral at SunTrust
Starz (STRZA) initiated with a Sector Perform at Pacific Crest
Time Warner (TWX) initiated with an Outperform at Pacific Crest

COMPANY NEWS

American Apparel (APP) announced that its board has adopted a new, one-year stockholder rights plan that is designed to strengthen the ability of the board to protect the company's stockholders
Jamba (JMBA) announced that it would be implementing an additional reduction in the company’s workforce of up to 23 employees based out of the company’s support center in Emeryville, California
21st Century Fox (FOXA) said it blacked out Fox News and Business for DISH (DISH)
Iron Mountain (IRM) reached settlement with U.S. DOJ to resolve GSA pricing issues
Staples (SPLS) gave an update on the investigation into its previously announced data security incident involving a small percentage of its retail point-of-sale systems. Staples’ data security experts detected that criminals deployed malware to some point-of-sale systems at 115 of its more than 1,400 U.S. retail stores, and said it believes that overall, approximately 1.16M payment cards may have been affected in the breach

EARNINGS

Anthem (ANTM) backs FY14 EPS excl. items $8.75-$8.85, consensus $8.83

NEWSPAPERS/WEBSITES

Express Scripts (ESRX) to offer AbbVie (ABBV) hepatitis C drug exclusively, CNBC reports
Caesars Entertainment (CZR) planning to buy Caesars Acquisition (CACQ), WSJ reports
Ocwen's (OCN) executive chairman to step down as part of NY settlement, WSJ reports
Pfizer (PFE) 'unlikely' to make fresh bid for AstraZeneca, Reuters reports
Sony (SNE) could stream 'Interview' on Crackle, but no decision made yet, Re/code reports
Herbalife (HLF) asked to stop airing video claiming FDA approval, NY Post reports
Chevron (CVX), Occidental Petroleum (OXY), others look cheap, Barron's says (RDS.A, EOG, SLB)
Bed Bath & Beyond (BBBY) could rise 19%, Barron's says

SYNDICATE

BG Staffing (BGSF) files to sell 822,212 shares for holders
CAMAC (CAK) files to sell 945.5M shares for holders
Dominion (D) files automatic mixed securities shelf
Eleven Biotherapeutics (EBIO) files to sell 2.62M shares for holders
GTx (GTXI) files to sell 64.31M shares for holders
Intellicheck (IDN) files to sell $9.775M of common stock
NeoPhotonics (NPTN) files to sell $37.95M of common stock
New Media (NEWM) files to sell $150M of common stock
ZaZa Energy (ZAZA) files to sell 212,470 shares of common stock

Ouch! 80% government-owned Royal Bank of Scotland is daring to go there... In the wake of a comprehensive review of more than 50 current and former traders who worked at the bank (and a $634 million fine), Bloomberg reports that RBS is suspending the bonuses of 18 FX traders.“We are undertaking a robust and thorough review into the actions of the traders that caused this wrongdoing and the management that oversaw it,” Jon Pain, RBS’s head of conduct and regulatory affairs, said, adding "no further bonus payments will be made or unvested bonus awards released to those in scope of the review until it has concluded."

As Bloomberg reports,

Royal Bank of Scotland suspended bonuses of 18 traders as part of a review of its foreign-exchange business in the wake of a $634 million fine.

 

The bank is reviewing the conduct of more than 50 current and former traders who worked at the investment bank, it said in a statement today. Six employees face disciplinary action, with three of them suspended pending investigations.

 

A former RBS trader was arrested on Dec. 19 in relation to the U.K. Serious Fraud Office’s investigation into currency rigging, according to a person with knowledge of the situation, who asked not to be identified because the details are private.

 

“We are undertaking a robust and thorough review into the actions of the traders that caused this wrongdoing and the management that oversaw it,” Jon Pain, RBS’s head of conduct and regulatory affairs, said in the statement. “No further bonus payments will be made or unvested bonus awards released to those in scope of the review until it has concluded.”

 

The SFO confirmed it had last week arrested a man in Billericay, a town in Essex, east of London. The agency declined to comment on his identity or employment.

 

...

RBS said that given the “complex” nature of the investigations, it will provide a further update when the review is complete, probably in the first quarter.

*  *  *

But how is an FX trader supposed to earn a dishonest living? And isn't it a basic human right that FX traders deserve multi-million dollar bonuses? Rigging, schmigging...

• Obama to focus on middle class in State of Union address (Reuters) - all 4 of them?
• European Stocks Buoyed by ECB Hopes (WSJ)
• China's 2014 economic growth misses target, hits 24-year low (Reuters)
• Federer on Swiss Franc Shock: "Does It Mean I've Got to Win Now?" (BBG)
• First-time buyers help Christie’s reach record sales (FT)
• So it was the NSA? U.S. Spies Tapped North Korean Computers Prior to Sony Hack (BBG)
• Why Chinese Developer Kaisa's Default Risk Has Money Managers Spooked (BBG)
• Morgan Stanley Misses Estimates on Drop in Bond-Trading Revenue (BBG)
• Bond Investors Haven't Been This Gloomy Since 2008 -- But Are They Right to Be So Down? (BBG) 100% wrong: bond investors are simply frontrunning central banks
• Pope says birth control ban doesn't mean breed 'like rabbits' (Reuters)
• Richest Russians Repatriate Assets as Putin Turns Tax Screw (BBG)
• Putin Enlists Veteran of 'Much Tougher Times' to Help Contain Ruble Crisis (BBG)
• Bank Losses From Swiss Currency Surprise Seen Mounting (BBG)
• Islamic State threatens two Japanese captives in video (Reuters)

Overnight Media Digest

WSJ

* U.S. Federal Reserve officials are staying on track to start raising short-term interest rates later this year, even though long-term rates are going in the other direction amid new investor worries. (http://on.wsj.com/1CHSBHr)

* China's economic growth slipped to its weakest level in almost a quarter century in 2014, though growth in the final quarter came in higher than expected, amid nagging problems of overcapacity, a weak housing market and lower global demand. (http://on.wsj.com/1CdTh9d)

* President Obama's proposal for billions of dollars in tax increases and higher government spending, to be outlined in Tuesday's State of the Union address, is reigniting partisan debates about overhauling the tax code and aiding the middle class. (http://on.wsj.com/1xrY9Cp)

* When Goldman Sachs Group Inc arranged an $835 million loan to Banco Espírito Santo SA last summer, it was the result of a concerted, monthslong effort by senior Goldman officials to win business with the large Portuguese company, according to people familiar with the matter. (http://on.wsj.com/1yCgcIS)

* When foreign-exchange broker FXCM Inc was forced to seek a rescue last week following a surprise surge in the Swiss franc, it became quickly apparent that Jefferies Group, which in recent years has honed its skills as a rescuer of firms succumbing to bouts of market turmoil, was best-suited for the job. (http://on.wsj.com/1yGwd1L)

* British authorities said they had closed a nearly two-year-old probe into alleged accounting issues related to Hewlett-Packard Co's $11-billion purchase of UK software company Autonomy in 2011 - representing a home-court victory for Autonomy founder Mike Lynch. (http://on.wsj.com/1ujOah7)

* BP's lawyers plan to argue that the drop in oil prices should weigh into the U.S. fines it faces from the 2010 Gulf oil spill. A trial is set for Jan. 20, and fines could total up to $13.7 billion. (http://on.wsj.com/1zsZI8R)

* The European Union is considering imposing a tax on U.S. Internet companies such as Google Inc. as part of a new plan to build a single digital market across the region, EU digital chief Günther Oettinger said. (http://on.wsj.com/1Cva4Cp)

* Two Wall Street deal makers are starting an activist hedge fund with a collaborative approach to management, hoping that financial backing from chief executives as well as their own experience advising boards under fire will open more doors than the combative stances and sharp missives favored by other activists. Active CEOs that are investing in the fund include Marc Casper of Thermo Fisher Scientific Inc and Stephen Hemsley of UnitedHealth Group Inc. (http://on.wsj.com/1yDhGWa)

FT

* UK's biggest energy retailer British Gas reduced household gas prices by 5 percent following Eon's 3.5 percent cut last week. This makes it the second energy company to cut the cost of household gas supplies in less than a week, and is in response to falling wholesale costs.

* Magnus Peterson, founder of Weavering hedge fund, has been found guilty of fraud for $600 million of investors' money by a jury in the Southwark Crown court. He was found guilty on eight counts which included fraud by abuse of position, furnishing false information and forgery.

* Banks and brokers involved in Aviva's planned acquisition of Friends Life Ltd will receive 45 million pounds as fees. The tie-up is expected to cost about 1,500 jobs. These disclosures were made in documents published ahead of shareholder votes on Aviva's all-share takeover.

* The Serious Fraud Office (SFO) has closed its investigation into the ill-fated sale of Autonomy to Hewlett-Packard Co, saying there was not enough evidence to secure a conviction of the software firm's former executives.

NYT

* After winning acclaim for one of its original television productions, Amazon.com Inc announced on Monday that it would produce and acquire films for theatrical release and early distribution on its Prime Instant Video service. (http://nyti.ms/1AF3vuV)

* As demand for exports slips and the real estate sector cools, China has been looking to consumers to help pick up the slack. But the country's slowing growth will complicate those plans. (http://nyti.ms/15rLJCS)

* At a remote research center on the Nebraska plains, scientists are using surgery and breeding techniques to re-engineer the farm animal to fit the needs of the 21st-century meat industry. The potential benefits are huge: animals that produce more offspring, yield more meat and cost less to raise. (http://nyti.ms/1yDkpis)

* The World Economic Forum annual meeting in Davos, Switzerland, which begins this week, has been a top venue for controversial conversations over the years. Israelis and Palestinians have debated, for example, and luminaries from the public and private sectors have faced off on big topics like climate change, inequality and gender diversity. (http://nyti.ms/1wn1NMa)

* The Danish monetary authorities lowered interest rates further into negative territory on Monday, seeking to reduce upward pressure on their currency, the krone, just days before a momentous meeting of the European Central Bank. (http://nyti.ms/1ujOEUp)

* The founder of Weavering Capital was convicted on Monday of fraud, forgery and other criminal charges related to the collapse of the hedge fund in 2009, prosecutors said. (http://nyti.ms/1yCgmzO)

* The Serious Fraud Office of Britain said on Monday that it had closed its investigation into suspected accounting and disclosure abuses connected to Hewlett-Packard Co's $11 billion purchase of the British technology company Autonomy. (http://nyti.ms/151525A)

* Societe Generale, one of France's largest banks, is splitting the roles of chairman and chief executive to comply with European rules, it said on Monday. (http://nyti.ms/1J1Fpku)

* The chief executive of Allied Irish Banks Plc, a nationalized lender, is leaving for a similar position at Clydesdale Bank Plc, the Scottish arm of National Australia Bank. (http://nyti.ms/1yCgCig)

Canada

THE GLOBE AND MAIL

** The Organization of the Petroleum Exporting Countries is resisting moves to halt the free fall in oil prices, stoking fears of deeper cuts to staffing and spending plans in Canada's energy sector as companies hunker down for a prolonged slump. Lightstream Resources Ltd and CanElson Drilling Corp joined on Monday a growing list of companies that have slashed budgets in response to the roughly 60-percent plunge in oil prices since June last year. (http://bit.ly/1EkCVea)

** The Canadian government signed an order on Monday under the Foreign Extraterritorial Measures Act, barring companies from complying with the requirement that only U.S. steel be used on the project in Prince Rupert, British Columbia, Trade Minister Ed Fast said. (http://bit.ly/1CdpYmV)

** Canadian special forces soldiers are more directly engaged in the fight against Islamic State forces in Iraq than previously thought, with troops on the ground guiding air strikes against targets and using sniper fire to fend off enemy attacks at the front lines. (http://bit.ly/1sVsuwt)

NATIONAL POST

** Toronto Mayor John Tory is poised to unveil his first draft city budget on Tuesday, which will include a property tax hike no higher than 3 percent, including a 0.5 percent levy already approved for the Scarborough subway. (http://bit.ly/15rX5Xu)

** Rob Ford fully emerged as Toronto's de-facto leader of the opposition on Monday, attacking John Tory as a tax-and-spender even as the new mayor positioned himself as the great undoer of Ford-era cuts. Ford accused his successor of "misleading" voters and "spending and spending and spending" after Tory unveiled new transit service. (http://bit.ly/1sVthxt)

** As senators in Washington D.C. prepare to vote on Tuesday on "Buy America" and "no export" amendments for a bill that would approve TransCanada Corp's Keystone XL pipeline, support for the much-debated oilsands line may not be as widespread and deeply felt as previously thought, accordingly to the results of a new poll. (http://bit.ly/1yCR8kI)

China

SECURITIES TIMES

- CITIC Securities Co Ltd denied media reports that the company reduced its share holdings right before regulators announced margin trading punishments and was engaged in insider trading, in an official statement published on Tuesday.

CHINA SECURITIES JOURNAL

- China will no longer require pre-approvals for most foreign investment once it adopts a "negative list" approach, the latest attempt by the country to ease inbound investment restrictions, said Sun Jiwen, the spokesman of the Ministry of Commerce on Monday.

SHANGHAI SECURITIES NEWS

- Chinese institutional investors are still holding positive views on the future performance of the stock market despite the sharp drop on Monday, the newspaper wrote in a commentary.

CHINA DAILY

- Contrary to Western portrayals, Uighurs found illegally entering Thailand and Vietnam are not innocent, helpless members of an ethnic minority fleeing suppression in pursuit of freedom, the newspaper said in an editorial. They are religious extremists headed to the forefronts of Islamic Jihad and devotees of the Islamic State group, it added.

 
PEOPLE'S DAILY

- Chinese Communist Party members should maintain their absolute loyalty to the party by acting in line with party rules, the mouth-piece of the party said in a commentary on Tuesday.

Britain

The Times

David Cameron insisted that there are "no surprises" in his tax returns, but refused to commit to publishing them. The Tory leader impressed there are "no secrets" about his tax affairs, but would not support plans made by Number 10 in 2012 for the prime minister and senior cabinet ministers to release their personal tax returns. (http://thetim.es/1ukAI2g)

David Cameron told Britain's leading Muslim group it "really has a problem" after it accused ministers of adopting the ideas of the far right. The Muslim Council of Britain had taken issue with the open letter to imams in England, calling on them to do more to turn young Muslims away from radicalisation in the wake of the Paris terror attacks. (http://thetim.es/14ZFF45)

The Guardian

The former chief executive of Tesco Plc, Terry Leahy, has broken his silence on the crisis engulfing the country's biggest retailer by claiming there was a failure of leadership under his successor, Philip Clarke. (http://bit.ly/1CIwcKa)

Government Communications Headquarters bulk surveillance of electronic communications has scooped up emails to and from journalists working for some of the U.S. and UK's largest media organisations, analysis of documents released by whistleblower Edward Snowden reveals. The disclosure comes as the British government faces intense pressure to protect the confidential communications of reporters, MPs and lawyers from snooping. (http://bit.ly/15nU9vK)

The Telegraph

The chief executive of the failed hedge fund Weavering has been found guilty of eight counts of fraud, forgery, false accounting and fraudulent trading, though he was cleared of eight further charges in a London court on Monday almost six years after the collapse of his company. (http://bit.ly/1CdxOgy)

Aviva's 5.6 billion pounds ($8.45 billion) takeover of Friends Life Group Ltd will lead to around 1,500 job losses under plans to generate significant cost savings. (http://bit.ly/1ukKT6R)

Sky News

British Gas is to cut household gas bills by 5 percent, an annual average saving of 37 pounds. The energy firm, owned by Centrica, said the move will benefit 6.8 million customers. (http://bit.ly/1CICCJ9)

Embattled construction group Balfour Beatty Plc will announce that it has poached the finance chief of travel agency Hogg Robinson group Plc as it continues a battle to retain its independence. Balfour Beatty is to name Philip Harrison as its new chief financial officer just days before it discloses the outcome of an investigation into the accounts of its UK construction arm. (http://bit.ly/1BuTi9Q)

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
NAHB housing market index for January at 10:00--consensus 58

ANALYST RESEARCH

Upgrades

Altria Group (MO) upgraded to Outperform from Market Perform at Wells Fargo
Avery Dennison (AVY) upgraded to Overweight from Equal Weight at Barclays
BJ's Restaurants (BJRI) upgraded to Buy from Hold at KeyBanc
Banco Bilbao (BBVA) upgraded to Buy from Neutral at Citigroup
C.R. Bard (BCR) upgraded to Neutral from Underweight at JPMorgan
CME Group (CME) upgraded to Buy from Neutral at Citigroup
Canon (CAJ) upgraded to Hold from Sell at Deutsche Bank
Carrizo Oil & Gas (CRZO) upgraded to Buy from Hold at KeyBanc
Copa Holdings (CPA) upgraded to Overweight from Neutral at JPMorgan
Exelon (EXC) upgraded to Outperform from Market Perform at Wells Fargo
Federal Signal (FSS) upgraded to Buy from Neutral at Global Hunter
Fluidigm (FLDM) upgraded to Outperform from Market Perform at Cowen
MedAssets (MDAS) upgraded to Buy from Hold at Evercore ISI
Micron (MU) upgraded to Positive from Neutral at Susquehanna
Rockwell Collins (COL) upgraded to Overweight from Equal Weight at Barclays
Starz (STRZA) upgraded to Overweight from Equal Weight at Morgan Stanley
T-Mobile (TMUS) upgraded to Conviction Buy from Buy at Goldman
Teck Resources (TCK) upgraded to Neutral from Underperform at BofA/Merrill
Tiffany (TIF) upgraded to Outperform from Market Perform at Wells Fargo
Vermilion Energy (VET) upgraded to Outperformer from Sector Performer at CIBC
Watsco (WSO) upgraded to Neutral from Sell at Goldman

Downgrades

Archer Daniels (ADM) downgraded to Underweight from Neutral at JPMorgan
Ball Corp. (BLL) downgraded to Equal Weight from Overweight at Barclays
CTC Media (CTCM) downgraded to Sell from Neutral at Goldman
Cache (CACH) downgraded to Neutral from Buy at B. Riley
Chubb (CB) downgraded to Neutral from Buy at UBS
Express Scripts (ESRX) downgraded to Neutral from Buy at UBS
Fossil (FOSL) downgraded to Neutral from Overweight at Piper Jaffray
GOL Linhas (GOL) downgraded to Sell from Neutral at Goldman
Intel (INTC) downgraded to Underperform from Market Perform at JMP Securities
Ivanhoe Mines (IVN) downgraded to Neutral from Buy at BofA/Merrill
Jack Henry (JKHY) downgraded to Sell from Hold at Evercore ISI
Luxottica (LUX) downgraded to Outperform from Strong Buy at Raymond James
Northeast Utilities (NU) downgraded to Market Perform from Outperform at Wells Fargo
PAREXEL (PRXL) downgraded to Neutral from Buy at SunTrust
Rexnord (RXN) downgraded to Sell from Neutral at Goldman
Syngenta (SYT) downgraded to Underweight from Equal Weight at Barclays
Taseko Mines (TGB) downgraded to Underperform from Neutral at BofA/Merrill
Time Warner (TWX) downgraded to Equal Weight from Overweight at Morgan Stanley
Viacom (VIAB) downgraded to Underweight from Equal Weight at Morgan Stanley
Wesco Aircraft (WAIR) downgraded to Underweight from Equal Weight at Barclays
Yandex (YNDX) downgraded to Sell from Neutral at Goldman
Zayo Group (ZAYO) downgraded to Neutral from Conviction Buy at Goldman

Initiations

GrubHub (GRUB) initiated with a Sector Perform at RBC Capital
Icahn Enterprises (IEP) initiated with a Neutral at UBS
LendingClub (LC) initiated with a Hold at Stifel
LendingClub (LC) initiated with a Neutral at Citigroup
LendingClub (LC) initiated with a Neutral at Goldman
LendingClub (LC) initiated with a Neutral at Goldman
LendingClub (LC) initiated with an Outperform at BMO Capital

COMPANY NEWS

AT&T (T) reported a $10B charge in Q4 related to pension benefits and network assets
Amazon (AMZN) to produce original movies for theaters, Prime Instant Video
FDA removed partial clinical hold for CytRx's (CYTR) aldoxorubicin clinical trials
Twitter (TWTR) acquired ZipDial, terms not disclosed
Mosaic (MOS) expects 'further business strength' into 2015
The Director of the Serious Fraud Office  closed the SFO's investigation into the sale of Autonomy to the Hewlett-Packard in 2011. In respect of some aspects of the allegations, the SFO has concluded that, on the information available to it, there is insufficient evidence for a realistic prospect of conviction

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Baker Hughes (BHI), First Defiance Financial (FDEF)

Companies that missed consensus earnings expectations include:
iGATE (IGTE), Mercantile Bank (MBWM), Regions Financial (RF), New Oriental Education (EDU)

Michaels (MIK) sees Q4 revenue $1.599B-$1.605B, consensus $1.59B
NTELOS (NTLS) sees FY14 adj. EBITDA at or above mid-point of guidance $128M-$132M
AMCON Distributing (DIT) reports Q1 EPS $2.11 vs. $1.73 last year
Mosaic (MOS) raises Q4 EPS outlook to 83c-88c, consensus 57c
New Oriental Education (EDU) sees Q3 revenue $279.8M-$290M, consensus $292.6M
Unilever (UL) reports Q4 underlying sales growth up 2.1%

NEWSPAPERS/WEBSITES

Google (GOOG) near $1B investment in SpaceX, WSJ reports
DreamWorks (DWA) planning to lay off 'substantial' number of staff, LA Times reports
Yahoo (YHOO) to announce Alibaba (BABA) plans on or before January 27, AP says
Samsung (SSNLF) wants BlackBerry (BBRY) partnership, not takeover, WSJ reports
Google (GOOG) in talks to acquire mobile-pay platform Softcard, WSJ says
Samsung (SSNLF) shares could rise 30%, Barron's says
GoPro (GPRO) shares could drop further, Barron's says
Phillips 66 (PSX) could jump 50%, Barron's says

• 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

Submitted by Martin Armstrong via Armstrong Economics,

The biggest problem we have with central banks is that they are run by academics with ZERO real world experience. This applies not just at the Fed, but most central banks with the lone exception of Bank of China. The greatest danger this presents is that the money-center banks manipulate the central bankers during states of financial panic and they who are so frightened, they will do whatever the money-center banks tell them

In the USA, there is nobody who would investigate the dark corners of the Federal Reserve being manipulated by the NY bankers who walk on water without ice.

However, the system is more open in Britain where the bankers do not control the courts as they do in New York City.

Consequently, the Bank of England (BoE) is now being investigated by the Serious Fraud Office (SFO) for being “too” friendly with the money-center banks during the crisis of 2008.

Last year, the BoE was cleared of “improper conduct” in the currency market manipulation allegations of the money-center banks. Nevertheless, major corporations are starting to wise-up to TRANSACTIONAL banking. A light is starting to go on that by no means can you go to these clowns for corporate hedging and advice for they will ALWAYS rig the game to make as much profit on the trading scalping clients until they bleed.

So while in the USA the banks can still bribe Congress to repeal Dodd-Frank and open the gates to money falling once again from heaven, that is not the case OUTSIDE the USA. Even the movie the FORECASTER is being shown around the world except the USA because of the elite control of the bankers who tell the Fed what to do and when, the Justice Department, and New York Federal Judges protect them every chance they get. We have NOBODY outside of their control to investigate anything.

Britain’s Serious Fraud Office’s investigators are now probing the central bank for possible fraud related to liquidity auctions between 2007 and 2008. During the financial crisis, the BoE invited banks to borrow money from the central bank, in exchange for collateral. This was conducted through a series of “liquidity auctions” where the funds were intended to prevent the banks collapsing. The banks always warn that there will be a complete collapse of the financial system unless their losses are covered.

The SFO is looking into the bankers’ “conduct” that was connected to these liquidity auctions. This is the criminal investigative agency that is conducting the probe of the BoE. Being investigated for “conduct” issues can be a very wide range from price fixing and handing the government the worse collateral possible (FRAUD) to the leaking of confidential information for personal gain.

*  *  *

The tide is turning against the banks. We will see more and more corporations turn away from the banks as advisory entities. They just cannot be trusted when they are also the market-makers making commissions/spreads on the trading that are totally undisclosed. The day of the banks is coming to an end. It looks more like the next downturn will drive the spike right through their hearts. Just maybe, we may get back to the way its should be – relationship business, not transactional where they have the incentive to manipulate markets for the quick buck and front-run clients.

• ECB Starts Buying German, Italian Government Bonds Under QE Plan (BBG)
• Creditors Reject Greece's Reform Proposals (BBG)
• Is Apple Watch the Timex digital watch of the Internet era? (Reuters)
• Tesla shedding jobs in China as sales target missed (Reuters)
• Malaysia Airlines says expired battery on MH370 did not hinder search (Reuters)
• Gunmen kill more than 12 Islamic State militants in eastern Syria (Reuters)
• GM Plans Share Buyback, Averting Proxy Fight (WSJ)
• Wisconsin capital marked by third day of protests after police shooting (Reuters)
• Hedge Funds Are Losing Faith in Oil Rally While Inventory Swells (BBG)
• German exports post biggest drop in five months in January (Reuters)
• Whiting Petroleum Seeks Buyer Amid Plunge in Crude Prices (WSJ)
• Birinyi Says Six-Year Bull Run Won’t End Until Skeptics Muzzled (BBG)
• Goldman Says $40 Oil Call May Be Too Low as Demand Surprises (BBG)

Overnight Media Summary

WSJ

* Under an agreement set to be announced Monday with New York, Equifax Information Services LLC, Experian Information Solutions Inc and TransUnion LLC, the three biggest companies that collect and disseminate credit information on more than 200 million Americans, will change the way they handle errors and list unpaid medical bills as part of the broadest industry overhaul in more than a decade. (http://on.wsj.com/1GwASHR)

* In a string of recent oil train derailments in the United States and Canada, new and sturdier railroad tanker cars being built to carry a rising tide of crude oil across the continent have failed to prevent ruptures. (http://on.wsj.com/1BXiyoF)

* Federal investigators suspect potential brake problems caused a Delta Air Lines jet to skid off a snowy runway last week at New York's La Guardia Airport, according to people familiar with the probe. (http://on.wsj.com/1A6cLI2)

* Facebook, Snapchat and streaming-startup Vessel are promising large TV-channel owners better terms for their video programming than Google's YouTube, hoping to capitalize on mounting frustration with the Web giant. (http://on.wsj.com/1KIZyjr)

* General Motors Co as soon as Monday will disclose plans to return billions of dollars to shareholders, a move that is expected to avoid a potential proxy fight with investor Harry J. Wilson, said people familiar with the matter. (http://on.wsj.com/1Hk8uX6)

* Vivendi's chairman and largest shareholder, Vincent Bollore, is sitting on a multibillion-dollar reserve that is swelling from asset sales. Now a question is swirling: What will he do with the company's cash? (http://on.wsj.com/1Hk8uX6)

* Many Swiss banks are saddled with a batch of accounts by clients who have refused to declare them. Now, they must soon be disclosed to the IRS thanks to recently implemented U.S. law. (http://on.wsj.com/1A9shUg)

* With its Apple Watch, set to be released next month, Apple Inc is crossing into high-end fashion, with a device that blurs the lines between jewelry and gadgetry. (http://on.wsj.com/1wSGEkn)

* Turbulence is in store for municipal-bond investors following a record run, as a gathering U.S. economic recovery pushes interest rates higher and issuance grows. (http://on.wsj.com/1NyN0Ks)

* OPEC's top official said Sunday that the cartel's decision to continue pumping crude in the face of collapsing prices is hurting the U.S. shale-oil industry and that a global pullback on investment could lead to a shortage that will push the market upward again. (http://on.wsj.com/1NyN0Ks)

FT

Britain's Serious Fraud Office is calling former traders of Barclays Plc and Deutsche Bank for interviews as part of its investigation of whether the Euribor benchmark interest rate was rigged.

Margrethe Vestager, Europe's new antitrust chief, warned the telecom sector, that mergers should not affect the "affordable prices" for consumers.

In a statement filed with a court in Parana, a former Petrobras executive said that he laundered about $100 million in bribes partly through a web of accounts in several Swiss banks.

According to a report by Open Europe, banks, insurers and other financial services would be most affected if Britain leaves the European Union.

NYT

* Analysts and investors are worried about the prospect of Goldman Sachs getting barred by regulators from buying back its own stock or increasing dividends after performing poorly in the Federal Reserve stress tests last week.(http://nyti.ms/1x7YSZF)

* Among all the major racial and ethnic groups in the United States, only Hispanics, as of late last year, had returned to their unemployment levels before the recession, according to the recent Economic Report of the President. (http://nyti.ms/1CTetmS)

* Companies like Ford Motor Co, Procter & Gamble , Under Armour and the Spanish bank BBVA are working to outmaneuver start-ups for dominance on mobile devices. (http://nyti.ms/1BnmgGx)

* Payment start-up Square has gone beyond its credit card reader and introduced new products in the last year. On Monday, it will introduce two services that it says will help small businesses. (http://nyti.ms/1BnmgGx)

* Yik Yak, a social media app that serves as a local bulletin board, has proved popular especially on college campuses, but the cover of anonymity it offers allows for some unfettered nastiness. (http://nyti.ms/1A8ICsw)

* Black Mask Studios does not have the name recognition of DC or Marvel Comics, but officials at the company hope that will soon change. The publishing and media company will unveil a series of YouTube channels devoted to comics on Monday, and release "Godkiller," its first animated movie, this summer. Black Mask also is developing several television series and its comics. (http://nyti.ms/1GwCjpL)

China

CHINA DAILY

- Japan's attendance in China's military parade this year to mark the victory in the anti-fascist war would be a good opportunity for Tokyo to throw away the burden of the war by facing up to its past, the official newspaper said in an editorial.

CHINA SECURITIES JOURNAL

- State-owned companies in Shanghai have stepped up efforts to securitise their assets as part of the country's state sector reforms, sources told this newspaper.

SHANGHAI SECURITIES NEWS

- China is considering amending rules on stock margin trading to tighten supervision after a surge in the business since the second half of last year, propelled by a recovery in the domestic stock market, Xiao Gang, Chairman of the China Securities Regulatory Commission, said.

NATIONAL BUSINESS DAILY

- Sinopec Marketing Co Ltd, a subsidiary to be set up by Chinese oil giant Sinopec, will seek regulatory approval to go public after conditions are mature, spokesman Lu Dapeng told this newspaper.

PEOPLE'S DAILY

- China has pledged to continue the search for a Malaysian Airlines flight which vanished a year ago.

Britain

The Times

TAXPAYER FOOTS THE BILL FOR RISKY BUSINESS LOANS

The government has admitted that 20.2 percent of enterprise finance guarantee (EFG) loans went sour, raising fresh questions about a scheme that is the subject of an internal investigation by Royal Bank of Scotland. The default rates - about 15 percent higher than would be expected under normal commercial lending - will heighten concerns that banks abused the scheme to pass risky small business liabilities on to the taxpayer.(http://thetim.es/1EtUyvj)

FORMER MORRISONS BOSS IS IN THE MONEY

WM Morrison Supermarket PLC's former boss, Dalton Philips, is set to pocket about 3 million pounds ($4.52 million) as the chain reveals its latest slump in annual profits this week. (http://thetim.es/18tgqc3)

The Guardian

GREECE THREATENS NEW ELECTIONS IF EUROZONE REJECTS PLANNED REFORMS

Greece's anti-austerity government has raised the spectre of further political strife in the crisis-plagued country by saying it will consider calling a referendum, or fresh elections, if its eurozone partners reject proposed reforms from Athens.(http://bit.ly/1BheK10)

EX-BP BOSS AIMS TO BUILD MAJOR ENERGY INDUSTRY PLAYER FROM SCRATCH

Lord Browne, the former BP PLC chief executive, plans to exploit the collapse in oil prices to build a major new company using $10 billion of Russian cash.(http://bit.ly/18tjTYa)

The Telegraph

TESCO BOSS IN CHARGE OF HARRIS+HOOLE AND GIRAFFE LEAVES

Michael Holmes, the chief executive of new food experiences at Tesco PLC, has left the company in a clear sign that one of former boss Philip Clarke's key initiatives has failed. Holmes is understood to have fallen victim to new boss Dave Lewis's brutal clear-out at the company. (http://bit.ly/1C0F5CC)

MARKS & SPENCER TO OFFER GIFT CARD TO SHAREHOLDERS INSTEAD OF DIVIDEND

Long-suffering Marks and Spencer Group shareholders are to be offered a discounted gift card instead of a dividend payment as part of an overhaul of the perks the high street retailer offers to its investors. These investors will now be able to exchange the cash they receive from their annual dividend payment for an in-store gift card. (http://bit.ly/1wShG4v)

Sky News

TUNGSTEN BANKING ARM UNVEILS DEPOSITS DRIVE

Tungsten Corp PLC, which is headed by Edi Truell, the former chief executive of private equity group Duke Street Capital, will say Monday that it is to start taking deposits. (http://bit.ly/192OP2P)

The Independent

ED DAVEY REJECTS BAN ON STANDARD ENERGY TARIFFS

Calls for variable energy tariffs to be cut to reduce the number of people overpaying for gas and electricity have been rejected by the Energy and Climate Change Secretary, Ed Davey, on competition grounds.(http://ind.pn/18tgWXI)

CITY IS STILL VULNERABLE TO SUDDEN FINANCIAL SHOCK, MPS WARN TREASURY

Politicians have called on the Treasury to undertake a series of war games with regulators and the Bank of England to combat a "surprising and urgent gap" in its readiness for another financial crisis. (http://ind.pn/18thsVF)

Fly On The Wall Pre-Market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Labor market conditions index for February at 10:00--prior 4.9

ANALYST RESEARCH

Upgrades

Aveo Pharmaceuticals (AVEO) upgraded to Sector Perform at RBC Capital
D.R. Horton (DHI) upgraded to Outperform from Market Perform at JMP Securities
DiamondRock (DRH) upgraded to Outperform from Neutral at RW Baird
Eni SpA (E) upgraded to Buy from Neutral at UBS
Gigamon (GIMO) upgraded to Overweight from Equal Weight at Barclays
Juniper (JNPR) upgraded to Buy from Neutral at Goldman
KB Home (KBH) upgraded to Outperform from Market Perform at JMP Securities
Netgear (NTGR) upgraded to Neutral from Sell at Goldman
Oasis Petroleum (OAS) upgraded to Neutral from Reduce at SunTrust
Reckitt Benckiser (RBGLY) upgraded to Buy from Hold at Jefferies
Ryland Group (RYL) upgraded to Outperform from Market Perform at JMP Securities
Statoil (STO) upgraded to Buy from Neutral at UBS
UTi Worldwide (UTIW) upgraded to Outperform from Market Perform at FBR Capital

Downgrades

Amazon.com (AMZN) downgraded to Neutral from Buy at SunTrust
Arrow Electronics (ARW) downgraded to Neutral from Buy at Longbow
Avnet (AVT) downgraded to Neutral from Buy at Longbow
BlackBerry (BBRY) downgraded to Sell from Neutral at Goldman
F5 Networks (FFIV) downgraded to Underweight from Equal Weight at Barclays
Quality Systems (QSII) downgraded to Underperform from Sector Perform at RBC Capital
Royal Dutch Shell (RDS.A) downgraded to Neutral from Buy at UBS
TSMC (TSM) downgraded to Underperform from Sector Perform at Pacific Crest
The Fresh Market (TFM) downgraded to Neutral from Buy at BofA/Merrill
WESCO (WCC) downgraded to Hold from Buy at BB&T

Initiations

AtriCure (ATRC) initiated with a Buy at Needham
Inovalon (INOV)  initiated with a Neutral at Piper Jaffray
Inovalon (INOV) initiated with a Buy at UBS
Inovalon (INOV) initiated with a Neutral at BofA/Merrill
Inovalon (INOV) initiated with a Neutral at Citigroup
Inovalon (INOV) initiated with a Neutral at Goldman
Inovalon (INOV) initiated with an Outperform at RW Baird
Invitae (NVTA) initiated with an Outperform at Cowen
Invitae (NVTA) initiated with an Overweight at JPMorgan
Lion Biotechnologies (LBIO) initiated with an Overweight at Piper Jaffray
Vanda (VNDA) initiated with a Buy at Jefferies

COMPANY NEWS

Intuit (INTU) confirmed information requests from U.S. government
T. Boone Pickens resigned from board of EXCO Resources (XCO)
Kate Spade (KATE), Lucky Brand entered transfer and settlement agreement
News Corp. (NWSA) acquired VCCircle, terms not disclosed

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
LightInTheBox (LITB), 58.com (WUBA)

LightInTheBox (LITB) sees Q1 revenue $89M-$91M, consensus $114.93M
Alkermes (ALKS) cuts FY15 non-GAAP EPS to (37c)-(50c) from (27c)-(40c), consensus (32c)
Sky-mobi (MOBI) reports Q4 EPS 2, one estimate 7c
58.com (WUBA) sees Q1 revenue $82M-$84M, consensus $78.50M

NEWSPAPERS/WEBSITES

GM (GM) expected to announce large share buyback, WSJ reports
Whiting Petroleum (WLL) in midst of auction process, sources say, WSJ reports
Novartis (NVS) expects to lead way for big pharma efficiency, Financial Times says
Apple Watch (AAPL) shipments expected to reach 4.8M in Q1, DigiTimes reports
Honeywell (HON) looks for deals, targets $10B in acquisitions by 2018, Bloomberg reports
Netflix (NFLX) looks to launch in Spain in 2015, Variety reports
Google (GOOG) to create version of Android to run virtual reality apps, WSJ reports
BNY Mellon (BK) could rise 20%, Barron's says
Foot Locker (FL) could return 20% more, Barron's says
Berkshire Hathaway (BRK.A), Wells Fargo (WFC) could be next in DJIA, Barron's says

SYNDICATE

Capstead Mortgage (CMO) files to sell 15M shares of common stock shelf
Eagle Pharmaceuticals (EGRX) files to sell 1.5M shares for holders
Gyrodyne (GYRO) files to sell $5.56M of common stock
Ladder Capital (LADR) files to sell 80.96M shares of Class A common stock for holders
Sanchez Production (SPP) files $500M mixed securities shelf
Ventas (VTR) files automatic mixed securities shelf

• As reported here first: The U.S. Has Too Much Oil and Nowhere to Put It (BBG)
• Dollar Drops From 12-Year High as S&P Futures, Bonds Gain (BBG); Dollar Bulls Retreat From 12-Year High to Euro With Fed in View (BBG)
• Clinton Private Email Plan Drew Concerns Early On (WSJ)
• ECB Bond Buying Not Needed With Economy Improving, Weidmann Says (BBG)
• China Feb new yuan loans well above forecast (Reuters)
• U.S. probing report Secret Service agents drove car into White House barrier (Reuters)
• Kerry tells Republicans: you cannot modify Iran-U.S. nuclear deal (Reuters)
• PBOC Pledges to Press on With Rate Liberalization Amid Slowdown (BBG)
• China Prepares Mergers for Big State-Owned Enterprises (WSJ)
• This 27-Year-Old Made Millions Riding the Death Spirals of Penny Stocks (BBG)
• In South Africa, Ranchers Are Breeding Mutant Animals to Be Hunted (BBG)
• Cybercriminals Are Misappropriating Businesses’ Web Addresses (WSJ)
• Three Banks Uncover the Path to Payouts in the Fed’s Stress Test (BBG)
• Spain’s Banco Sabadell in Talks to Buy Britain’s TSB Group (BBG)
• How Big Oil Is Profiting From the Slump (BBG)
• Alibaba ploughs $200 mln into Snapchat in latest startup deal (Reuters)

Overnight Media Digest

WSJ

* Hillary Clinton's plan to run her work and private email through the server her husband set up in their family home left his aides worried that adding her account would make the system a target for hackers. (http://on.wsj.com/1Gu3aiJ)

* Four of the biggest names on Wall Street struggled to pass the Federal Reserve's 2015 "stress tests," and the U.S. units of two foreign banks fell short. Goldman Sachs Group Inc, J.P. Morgan Chase & Co and Morgan Stanley received the green light to return income to investors only after adjusting their initial requests to ensure capital buffers stayed above the minimums required by the Fed. Bank of America Corp got conditional approval to return capital to shareholders. (http://on.wsj.com/1EBxieV)

* Cybercriminals targeting businesses are stealing more than customer passwords and credit-card numbers. They're misappropriating the Web addresses - or domain names - of the businesses themselves. (http://on.wsj.com/1F0RFki)

* Endo International has made a takeover bid for Salix Pharmaceuticals, seeking to upend Valeant Pharmaceuticals International Inc 's roughly $10 billion agreement to buy the drug maker. (http://on.wsj.com/1AgZ0Hh)

* The Bank of Korea joins a growing list of central banks to cut rates, as the dilemma between stoking growth and balancing high levels of debt tips in favor of the former. (http://on.wsj.com/1MtfTUU)

* General Electric is considering making deeper cuts in its massive banking business, having decided the returns from lending are no longer worth the discontent it causes among investors. (http://on.wsj.com/1wv1ci7)

* China's leadership is preparing to consolidate the country's state-owned sector, telling thousands of enterprises that they need to rely less on state life support. (http://on.wsj.com/1xeUs30)

* Alibaba Group Holding is investing in Snapchat in a deal that values the messaging company at $15 billion, in the latest sign of escalating valuations for Silicon Valley startups. (http://on.wsj.com/18CcNAO)

* United Technologies Corp said it will explore strategic alternatives for its Sikorsky Aircraft business, including a potential spinoff of the helicopter unit. (http://on.wsj.com/1wvY9Gw)

* The Federal Trade Commission filed a civil lawsuit against DirecTV in California federal court Wednesday, alleging that the satellite-TV giant engaged in deceptive advertising. (http://on.wsj.com/1F0QSji)

FT

The U.S. Fed has slashed capital plans of Deutsche Bank AG and Banco Santander SA, saying they have serious deficiencies in capital planning and risk management.

Bank of England officials admitted that the bank kept secret a Serious Fraud Office move to launch a criminal investigation into the bank.

The Royal Bank of Scotland, which was sued by Property Alliance Group over alleged libor manipulation, lost a pre-trial battle in a 30 million pound lawsuit.

Japan's Brother Industries Ltd will buy Britain's Domino Printing Sciences for about 1 billion pounds.

NYT

* All the large United States banks passed an annual regulatory test that aims to assess whether they can make it through a financial and economic calamity, the Federal Reserve said on Wednesday. But Bank of America Corp passed only provisionally and could still fail later this year if it does not fix deficiencies that the Fed identified. (http://nyti.ms/1MtiXAt)

* Federal officials released a survey of potentially dangerous guardrails on Wednesday and said that they found no evidence that the guardrails had been quietly changed to make them safer after accusations that earlier changes had made them less safe. (http://nyti.ms/1Mv0c1t)

* Drugmaker Endo International sent a letter to Salix Pharmaceutical's board on Wednesday, offering $175 a share in cash and stock for the company in a deal that values Salix at about $11.2 billion. That price trumps Valeant Pharmaceutical's agreed offer of $158 a share in cash, or about $10 billion. (http://nyti.ms/1C9cwTR)

* John Catsimatidis, the billionaire owner of the Gristedes supermarket chain, is considering making a bid for the Daily News in New York. (http://nyti.ms/1xf3YmM)

Canada

THE GLOBE AND MAIL

** An information technology manager at MacDonald Dettwiler & Associates Inc is facing accusations of insider trading and tipping in advance of a takeover deal the company negotiated in 2012. The Ontario Securities Commission alleged Satish Talawdekar learned about his company's plans to acquire a major subsidiary of Loral Space & Communications Inc in 2012, and used his personal line of credit to buy C$44,365 ($34,972) worth of MDA shares just days before the company announced the deal. (http://bit.ly/19dU6V7)

** Private-sector economists who submitted their prebudget forecasts to Ottawa this week say with the past two months of steady oil prices there is no longer a need to delay the budget. (http://bit.ly/1ECdzMa)

** The Toronto District School Board passed next year's budget on Wednesday, cutting more than 250 jobs, including about 50 special education jobs that became a sticking point for trustees during an hour-long soul-searching debate. (http://bit.ly/1Buzd2u)

NATIONAL POST

** Ireland's Endo International Plc has emerged as a rival bidder for Salix Pharmaceuticals Ltd and said in a statement that it plans to offer $175 per Salix share, payable in cash and stock, through a negotiated transaction. That proposal was announced less than three weeks after Valeant Pharmaceuticals International Inc and Salix signed off on a $158 per share transaction. (http://bit.ly/1MtQcUe)

** PepsiCo Inc announced the re-launch of its Pepsi Challenge global marketing campaign on Wednesday, taking Vancouver-based technology company UrtheCast Corp along for the ride. UrtheCast, which has developed the world's first color ultra High-Definition video camera to take near real-time video of earth from space, will film the first "epic-film adventure," for the Pepsi campaign's technology challenge. (http://bit.ly/1C8pvU6)

** A majority of Canadians say the country needs government policies to protect Canadian culture from being subsumed by American and other foreign influences, although 24 percent of people say there's no such thing as a unique Canadian culture to begin with, according to a new Angus Reid Institute report published on Wednesday. (http://bit.ly/1ECf6Sk)

China

CHINA SECURITIES JOURNAL

- China will release the details on its debt swap plan soon, said Zhu Guangyao, the vice finance minister, on Wednesday. China recently began allowing its local governments to swap a total of 1 trillion yuan ($159.71 billion) of their high-interest debts for lower-cost bonds.

SECURITIES TIMES

- Industrial Bank Co Ltd denied media reports that it would merge with Huafu Securities - a Chinese local brokerage firm - in a company filing published on Thursday, the paper reported.

CHINA DAILY

- International retailers' market share in China dropped to 19 percent in 2014, down from 20 percent in 2013, the newspaper said, citing research by Kantar Worldpanel.

- The Green Ecological Silk Road Investment Fund, the first private-equity fund focused on environmental investments along China's planned Silk Road, raised 30 billion yuan in its first round of fundraising, according to the newspaper.

PEOPLE'S DAILY

- China should strengthen its campaign to fight poverty by adopting new technologies such as 'big data' to increase the efficiency and accuracy of the anti-poverty campaign, an editorial in the mouthpiece of the Chinese Communist Party said on Thursday.

Britain

The Times

EURO FALL SENDS A SHUDDER THROUGH BRITAIN'S FACTORIES

Output from Britain's factories unexpectedly faltered in January, according to official new figures today, amid growing concern that the plunging euro is beginning to hamper UK exports.(http://thetim.es/1FOiG9c)

DOMINO UNDER JAPANESE OWNERSHIP IN 1 BILLION POUNDS DEAL

Domino Printing Sciences Plc, which makes printers for date coding and product marking with healthcare, food and beverage brands, has agreed to be bought out by Japanese giant Brother Industries Ltd in a deal worth more than 1 billion pounds ($1.49 billion).(http://thetim.es/1FOjxqs)

The Guardian

E.ON REPORTS RECORD GROUP LOSSES AS PREPARES TO HIVE OFF FOSSIL FUEL BUSINESS

E.ON SE, the German power group and one of the UK's "big six" energy suppliers, has reported record annual losses as it prepares to unveil details of how it will hive off its troubled fossil fuel business.(http://bit.ly/1FOlvqZ)

WALL STREET BONUSES INCREASE 2 PCT AS INDUSTRY ADDS JOBS

New York's state comptroller says the average bonus paid to securities industry employees in New York City grew 2 percent last year to nearly $173,000, largest average Wall Street bonus since the 2008 financial crisis.(http://bit.ly/1FOmFm8)

The Telegraph

FEDERAL RESERVE REJECTS SANTANDER AND DEUTSCHE BANK CAPITAL PLANS

The Federal Reserve rejected the capital plans of the US operations of Spanish bank Banco Santander SA and Germany's Deutsche Bank AG, saying it saw serious problems in the planning processes of both.(http://bit.ly/1Gtn7pV)

VODAFONE TARGETS NOVEMBER LAUNCH FOR INTERNET PAY-TV SERVICE

Vodafone Group Plc is retuning its UK operation for its entry into the broadband and pay-TV markets by opening new offices, attempting to poach expert staff from rivals and forging relationships with technology suppliers. The operator is quietly investing in two premises where its new venture will be based, according to multiple industry sources.(http://bit.ly/1HFs5RF)

Sky News

SHAWBROOK JOINS START-UP BANKS' RACE TO FLOAT

Shawbrook Bank Ltd <IPO-SHAW.L>, a challenger bank chaired by the former head of Royal Bank of Scotland will announce plans for a flotation on Thursday that the City believes could value it at almost 1 billion pounds ($1.49 billion).(http://bit.ly/1Ecif8M)

GREECE THREATENS GERMAN ASSET SEIZURE OVER WAR

Greek Justice Minister Nikos Paraskevopoulos has announced it may seize German state-owned property to compensate victims of a Nazi massacre more than 70 years ago.(http://bit.ly/1EB3crW)

The Independent

US INVESTOR SPLASHES OUT 600 MLN POUNDS ON LUXURY STUDENT ACCOMMODATION

A US investor, Greystar Real Estate Partners, has splashed out 600 million pounds ($895.80 million) on a luxury student accommodation portfolio in London where rents are as much as 474 pounds ($708) per week. The purchase includes properties in King's Cross, Spitalfields and Notting Hill.(http://ind.pn/1EB3H5v)

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Jobless claims for week of March 7 at 8:30--consensus 305K
Retail sales for February at 8:30--consensus up 0.3%
Business inventories for January at 10:00--consensus up 0.1%

ANALYST RESEARCH

Upgrades

Ally Financial (ALLY) upgraded to Buy from Hold at Evercore ISI
American Vanguard (AVD) upgraded to Buy from Hold at Topeka
Banc of California (BANC) upgraded to Outperform from Market Perform at Raymond James
GNC Holdings (GNC) upgraded to Overweight from Equal Weight at Morgan Stanley
Horizon Technology (HRZN) upgraded to Buy from Hold at Wunderlich
Magnum Hunter (MHR) upgraded to Buy from Neutral at SunTrust
NCI Building (NCS) upgraded to Buy from Neutral at Citigroup
Verisk Analytics (VRSK) upgraded to Buy from Hold at Evercore ISI
Windstream (WIN) upgraded to Buy from Neutral at Citigroup
York Water (YORW) upgraded to Neutral from Underperform at Hilliard Lyons

Downgrades

Alkermes (ALKS) downgraded to Underweight from Equal Weight at Morgan Stanley
CONSOL (CNX) downgraded to Underperform from Neutral at BofA/Merrill
Garmin (GRMN) downgraded to Underperform from Market Perform at Raymond James
HP (HPQ) downgraded to Equal Weight from Overweight at Barclays
Ingram Micro (IM) downgraded to Equal Weight from Overweight at Barclays
Logitech (LOGI) downgraded to Underweight from Neutral at JPMorgan
McCormick (MKC) downgraded to Market Perform from Outperform at Bernstein
Meritage Homes (MTH) downgraded to Neutral from Buy at Citigroup
Motorola Solutions (MSI) downgraded to Underperform at Raymond James
Netgear (NTGR) downgraded to Underperform from Market Perform at Raymond James
Peabody (BTU) downgraded to Underperform from Neutral at BofA/Merrill
Pernix Therapeutics (PTX) downgraded to Hold from Buy at Cantor
Plantronics (PLT) downgraded to Neutral from Overweight at JPMorgan
Sterling Bancorp (STL) downgraded to Neutral from Buy at Guggenheim
Vera Bradley (VRA) downgraded to Market Perform from Outperform at Cowen

Initiations

1-800-Flowers.com (FLWS) initiated with a Buy at B. Riley
Hibbett Sports (HIBB) initiated with an In-Line at Imperial Capital
Oncothyreon (ONTY) initiated with a Buy at Jefferies
Qualys (QLYS) initiated with a Hold at Summit Research

COMPANY NEWS

The Federal Reserve did not object to the capital plan of Bank of America (BAC), but is requiring the institution to submit a new capital plan by the end of Q3 to address certain weaknesses in its capital planning processes. Bank of America also announced a $4B share repurchase program
The Federal Reserve objected to the capital plans of Deutsche Bank Trust Corporation (DB) and Banco Santander's (SAN) Santander Holdings USA on qualitative concerns
The Fed did not object to CCAR plans from Morgan Stanley (MS), BNY Mellon (BK), American Express (AXP), Citigroup (C), Huntington Bancshares (HBAN), SunTrust Banks (STI), Capital One (COF), KeyCorp (KEY), U.S. Bancorp (USB) and others
Morgan Stanley announced $3.1B share repurchase plan, boosts dividend to 15c per share
United Technologies (UTX) said it will explore strategic alternatives for Sikorsky Aircraft
Endo (ENDP) confirmed proposal to acquire Salix (SLXP) for $175 per share in cash, stock (VRX)
ACADIA (ACAD) announced retirement of CEO Uli Hacksell, Ph.D. The company also said it plans to submit its NUPLAZID NDA for the treatment of Parkinson’s disease psychosis in 2H15, later than its original plan of 1Q15
Inogen (INGN) announced audit committee probe into accounting, postpones results
Disney (DIS) CEO Iger said announcements coming at shareholder meeting Thursday, said announcements will be of interest to shareholders

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Natural Gas Services (NGS), Hawaiian Telcom (HCOM), Neff (NEFF), Men's Wearhouse (MW), Luxfer (LXFR), Xunlei (XNET), Myers Industries MYR Group (MYRG), Comtech (CMTL), Sientra (SIEN), Scientific Games (SGMS), Douglas Dynamics (PLOW), Omega Protein (OME), Workiva (WK), Inter Parfums (IPAR), XOMA (XOMA), Numerex (NMRX), Ocera Therapeutics (OCRX), Conatus (CNAT), Zoe's Kitchen (ZOES)

Companies that missed consensus earnings expectations include:
Glori Energy (GLRI), JP Energy (JPEP), TG Therapeutics (TGTX), Arc Logistics (ARCX), Rosetta Stone (RST), Relypsa (RLYP), Bellicum reports Q4 EPS ($18.99), Box, Inc. (BOX), Shake Shack (SHAK)

Companies that matched consensus earnings expectations include:
Krispy Kreme (KKD)

Box, Inc. (BOX) sees Q1 revenue $63M-$64M, consensus $61.78M, sees FY16 revenue $281M-$285M, consensus $276.90M
Men's Wearhouse (MW) raises FY17 EPS view to $5.75-$6.25
Krispy Kreme (KKD) backs FY16 EPS view of 79c-85c, consensus 84c
Shake Shack (SHAK) sees FY15 revenue $159M-$163M, consensus $160.72M

NEWSPAPERS/WEBSITES

Alibaba (BABA) planning investment in Snapchat, Bloomberg reports
General Electric (GE) considers further cuts to capital business, WSJ reports
Sony Mobile Taiwan (SNE) says company will not sell mobile business, DigiTimes reports
Aeropostale (ARO) may be next teen retailer to declare bankruptcy, Forbes reports
Funds urge Children's Place (PLCE) to improve results, explore sale, Reuters reports
Apple (AAPL) removes competing fitness wearables from its retail stores, Re/code reports (NKE)

SYNDICATE

Baytex Energy (BTE) announces $500M bought deal financing
Bovie Medical (BVX) files to sell common stock, no amount given
ContraVir Pharmaceuticals (CTRV) files $200M mixed securities shelf
CyberArk (CYBR) 4M share Secondary priced at $51.00
EQT Midstream Partners (EQM) 8.25M share Secondary priced at $76.00
Eleven Biotherapeutics (EBIO) files $200M mixed securities shelf
GSI Group (GSIG) files $250M mixed securities shelf
Genocea (GNCA) files to sell common stock, no amount given
Lumos Networks (LMOS) files to sell 1.6M shares for holders
MSB Financial (msbf) files to sell 3.28M shares of common stock
Parsley Energy (PE) files to sell 14.89M shares for holders
PetroQuest (PQ) cancels 10M share common offering due to market conditions
Selectica (SLTC) files to sell 1.78M shares for holders
Summit Materials (SUM) 22.22M share IPO priced at $18.00
Targa Resources (TRGP) files to sell 3.25M shares of common stock
Tetraphase (TTPH) 4.3M share Secondary priced at $35.00
Trillium Therapeutics (TRIL) files to sell $57.5M of common stock
Valero (VLO) files automatic mixed securities shelf
Zayo Group (ZAYO) 19M share Secondary priced at $27.35

• Iran, powers push for nuclear deal as clock ticks toward deadline (Reuters)
• How DIY Bond Traders Displaced Wall Street’s Hot Shots (BBG)
• MillerCoors Caught in a Downdraft (WSJ)
• Saudi-led strikes again hit Yemen overnight (Reuters)
• Even With Free Money, Merkel Still Reluctant to Spend (BBG)
• A Shrewd Oil Call Reverses Fortunes for Lucky Few (WSJ)
• Britain Uses Tax Breaks to Lure Digital-Game Developers (WSJ)
• China to Insure Deposits in Move Toward Scrapping Rate Curbs (BBG)
• As China Expands Its Navy, the U.S. Grows Wary (WSJ)
• Yoox to Buy Richemont’s Net-a-Porter for $775 Million (BBG)
• San Francisco Boom Pins Office Landlords to Tech Bets (BBG)
• Blackstone’s Latest Fund Raises $14.5 Billion in Institutional Capital (WSJ)
• Euro-Area Price Drop Slows as Draghi Implements QE Plan (BBG)
• Cablevision to make $1 offer for New York Daily News (Reuters)

Overnight Media Digest

WSJ

* At MillerCoors LLC, the U.S. joint venture of SABMiller and Molson Coors Brewing Co, profit margins are under pressure and rival craft beers are cutting into sales. On top of this, the company needs to find a new CEO. (http://on.wsj.com/1DiJgZJ)

* The British government is hoping to score big by offering millions of dollars of tax breaks to lure digital-game developers. However, to win tax breaks, developers need to pass a European Union-mandated "cultural test" to prove that their planned games are British - or at least European - enough. (http://on.wsj.com/1DiKowt)

* Senator Mike Lee, a Utah Republican and chairman of the Senate's antitrust panel, plans to ask the Federal Trade Commission for information about meetings it had with Google Inc executives while the FTC was investigating the company for possible antitrust violations. (http://on.wsj.com/1CroaX0)

* UnitedHealth Group Inc's deal to acquire Catamaran Corp for about $12.8 billion in cash will bulk up its pharmacy-benefit business amid growing concern from employers and insurers about the rising costs of cutting-edge drugs. (http://on.wsj.com/1CrpAAM)

* In the latest sign of the importance of its drone program, Amazon.com Inc has hired Sean Cassidy, the former number-two executive at the Air Line Pilots Association, to help with the project. (http://on.wsj.com/1Crpw3W)

* Tesla Motors Inc will unveil a new product on April 30 that is not a car, but is likely a stationary battery storage system. (http://on.wsj.com/1CrpGse)

FT

Allowing EU nationals living in the UK to vote could be one of the conditions levied by the Liberal Democrats in exchange for allowing a referendum to the Conservatives, the Financial Times reported.

Rory Cullinan, head of Royal Bank Of Scotland Group Plc's investment bank, resigned after a disagreement with senior management over strategy, the Financial Times reported citing a person close to RBS.

The Confederation of British Industry is looking for a replacement for its Director-General John Cridland after he decided to follow the path of his predecessors in stepping down after one five-year term.

Iraqi Kurdistan-focused oil producer Gulf Keystone Petroleum Ltd on Monday announced its plans to raise at least 30 million pounds($44.42 million) for short-term financial stability, from a placing of up to 86 million shares.

NYT

* Jay Z, the rap star and entertainment mogul, announced his plans for Tidal, a subscription streaming service he recently bought for $56 million. Facing competition from Spotify, Google Inc and other companies that will soon include Apple Inc, Tidal will be fashioned as a home for high-fidelity audio and exclusive content. (http://nyti.ms/1CrrykP)

* In a recent series of attacks on websites like Github that try to help Internet users in China circumvent censorship, a portion of the torrents of Internet traffic was diverted using the Great Firewall, to overload targeted websites. The attacks appear to hijack advertising and analytics traffic intended for Baidu Inc, China's largest search company, and then send that traffic to smaller websites in what is known as a distributed denial of service or DDoS attack. The huge flow of traffic has the effect of crashing the sites. (http://nyti.ms/1CrsSnD)

* With the prospect of a default looming in Greece, Prime Minister Alexis Tsipras is preparing to meet next week with President Vladimir Putin of Russia as a European deal to give more aid to Athens falters. (http://nyti.ms/1Crt9XF)

* The Academy of Nutrition and Dietetics said it was working with the Kraft Foods Group Inc to end part of a deal that allowed the food company to use one of the academy's logos on packages of Kraft Singles. (http://nyti.ms/1CrthGB)

* On Monday, the government charged that in the shadows of an undercover investigation of Silk Road, two federal agents sought to enrich themselves by exploiting the very secrecy that made the site so difficult to penetrate. The agents, Carl Mark Force IV, who worked for the Drug Enforcement Administration, and Shaun Bridges, who worked for the Secret Service, were charged with money laundering and wire fraud. Force was also charged with theft of government property and conflict of interest. (http://nyti.ms/1CrtObR)

China

CHINA SECURITIES JOURNAL

- China's will encourage private firms to invest in water conservation projects, with eligible companies potentially gaining exemption from corporate income taxes for the first three years, three top government bodies said in a joint statement.

- Bank of China Ltd said it expects China could cut the reserve requirement ratio 2-3 more times in the future and that GDP could reach 7.2 percent in the second quarter of the year, according to a report from the bank.

SHANGHAI DAILY

- The number of residents in Shanghai over the age of 60 rose almost 7 percent in 2014 to reach 4.14 million, according to a report from the Civil Affairs Bureau on Monday. That's almost a third of the city's permanent population.

SHANGHAI SECURITIES NEWS

- Net profit in China's fund sector hit 520 billion yuan ($83.78 billion) in 2014, the highest in five years, the newspaper calculated from the annual reports of fund companies.

Britain

The Times

MEDIEVAL MPS ABUSE POWERS, SAYS MOULTON

Jon Moulton, founder of Better Capital, the private equity vehicle that owned City Link, has rebuffed MPs who criticised him over the collapse of the courier group and accused them of abusing their "medieval powers" and failing to give him a fair hearing. (http://thetim.es/1OS0CB6)

B&Q shuts stores as Britain gives up DIY

The parent company of B&Q will reveal plans on Tuesday to shut dozens of DIY stores in response to a long-term decline in the number of Britons willing to spend their weekends immersed in doing things themselves. Kingfisher PLC is to announce that between 40 and 60 DIY stores will close out of a total B&Q estate of 360 outlets. The cutbacks will jeopardise up to 1,000 jobs, including that of Kevin O'Byrne, the chain's boss, who is expected to leave. (http://thetim.es/1CqIuaV)

The Guardian

MORTGAGE DEMAND SURGES AS OPTIMISM ABOUT UK ECONOMY REACHES 13-YEAR HIGH

Britons enter the five-week election campaign more upbeat about the economy than at any time in almost 13 years, according to the latest snapshot of confidence from the polling organisation Gfk. Against a backdrop of falling inflation and a boost to spending power from plunging energy prices, Gfk said all five of its measures of consumer confidence had picked up in the past month. (http://bit.ly/1Dh9Hz5)

TESCO TO REDUCE NUMBER OF CHARGES IMPOSED ON SUPPLIERS

Tesco PLC is radically restructuring the way it works with suppliers, cutting the number of ways in which it charges them from 24 to just three. The plan was outlined by Dave Lewis, the chief executive, as the groceries watchdog investigates Tesco over its dealings with manufacturers and distributors in the wake of a 263-million pound ($389.21 million) accounting scandal linked to misstatement of income from such suppliers. (http://bit.ly/1F9X3AX)

The Telegraph

RBS EXECUTIVE TO LEAVE AFTER COMPLAINING HE WAS 'BORED' AT WORK

Rory Cullinan, chairman of Royal Bank of Scotland's investment bank, is leaving just weeks after messages he sent to his daughter were revealed, showing he was "bored" at work. (http://bit.ly/1BJKvfY)

SFO FINED FOR BAE CORRUPTION CASE SECURITY BLUNDER

Britain's Serious Fraud Office has been hit with a 180,000-pound fine for an "astounding" security blunder that saw it send thousands of confidential papers to the wrong witness in its investigation of allegedly corrupt arms deals between BAE Systems and Saudi Arabia. (http://bit.ly/1acgSgO)

Sky News

PENSION DATA SALES CLAIMS TRIGGER INQUIRY

An investigation has been launched by the Information Commissioner's Office into claims that details of millions of people's pensions are being sold to cold-calling firms and fraudsters. (http://bit.ly/1G7Q9gV)

LABOUR BUSINESS LAUNCH OVERSHADOWED BY ROW

Britain's opposition Labour Party leader Ed Miliband's business manifesto launch has been overshadowed by a row over Labour's use of business leaders' quotes in an advertisement for the party's stance on the EU. (http://bit.ly/1DhclVe)

The Independent

B&Q PARENT KINGFISHER PULLS OUT OF MR BRICOLAGE TAKEOVER TALKS A DAY BEFORE RESULTS

Executives at B&Q parent company Kingfisher were left empty handed after nine months of negotiations to buy French rival DIY chain Mr Bricolage collapsed. (http://ind.pn/1CqKMqw)

TAX AVOIDANCE INVESTIGATIONS UP BY A QUARTER

A Finance team set up by the UK's HM Revenue and Customs to target wealthy fund managers and investment bankers has brought in 39 million pounds since it started in September 2012, while the number of investigations is up by a quarter in the last year. (http://ind.pn/1EWFXUs)

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
S&P Case-Shiller 20 city home price index for January at 9:00--consensus up 0.6%
Chicago PMI for March at 9:45--consensus 51.7
Conference Board consumer confidence for March at 10:00--consensus 96.4

ANALYST RESEARCH

Upgrades

Brocade (BRCD) upgraded to Market Perform from Underperform at William Blair
Continental Building (CBPX) upgraded to Outperform from Sector Perform at RBC Capital
CyberArk (CYBR) upgraded to Hold from Sell at Summit Research
D.R. Horton (DHI) upgraded to Positive from Neutral at Susquehanna
HCP (HCP) upgraded to Buy from Neutral at UBS
Horizon Pharma (HZNP) upgraded to Overweight from Neutral at Piper Jaffray
Horizon Pharma (HZNP) upgraded to Overweight from Neutral at Piper Jaffray
Jones Energy (JONE) upgraded to Outperform from In-Line at Imperial Capital
PNM Resources (PNM) upgraded to Overweight from Sector Weight at KeyBanc
Priceline (PCLN) upgraded to Buy from Hold at Stifel
R.R. Donnelley (RRD) upgraded to Buy from Hold at Benchmark Co.
Royal Bank of Canada (RY) upgraded to Buy from Neutral at Citigroup
Teva (TEVA) upgraded to Outperform from Perform at Oppenheimer
Toronto-Dominion (TD) upgraded to Buy from Neutral at Citigroup
Zebra Technologies (ZBRA) upgraded to Outperform from Market Perform at Wells Fargo

Downgrades

Cypress Energy (CELP) downgraded to Hold from Buy at Wunderlich
Echo Global (ECHO) downgraded to Hold from Buy at BB&T
Hyperion Therapeutics (HPTX) downgraded to Hold from Buy at Cantor
OFG Bancorp (OFG) downgraded to Neutral from Buy at Guggenheim

Initiations

EVERTEC (EVTC) initiated with a Buy at Topeka
Express (EXPR) initiated with a Buy at Brean Capital
Flexion (FLXN) initiated with a Buy at MLV & Co.
IAC (IACI) initiated with an Outperform at JMP Securities
INC Research (INCR) initiated with an Outperform at Raymond James
L Brands (LB) initiated with a Hold at Brean Capital
MaxPoint Interactive (MXPT) initiated with a Neutral at Goldman
MaxPoint Interactive (MXPT) initiated with an Outperform at Pacific Crest
NGL Energy Partners (NGL) initiated with an Equal Weight at Barclays
New York & Co. (NWY) initiated with a Buy at Brean Capital
Rice Midstream (RMP) initiated with an Outperform at Wells Fargo
Sensient (SXT) initiated with a Buy at BB&T
Skullcandy (SKUL) initiated with a Buy at Wunderlich
Turtle Beach (hear) initiated with a Hold at Wunderlich
Ultragenyx (RARE) initiated with a Buy at MLV & Co.
Virgin America (VA) initiated with a Hold at Stifel
ZAGG (ZAGG) initiated with a Buy at Wunderlich

COMPANY NEWS

IBM (IBM) announced that it will invest $3B over the next four years to establish a new Internet of Things unit, and that it is building a cloud-based open platform designed to help clients and ecosystem partners build IoT solutions
Vail Resorts (MTN) to acquire Perisher Ski Resort for approximately $136M
GO Scale Capital acquired 80.1% interest in Lumileds from Philips (PHG)
Celladon (CLDN) said CUPID 2 topline data release is on track for late April
Teck Resources (TCK) said that it is not in talks with Antofagasta
DryShips (DRYS) announced agreements to sell its four Suezmax tankers, Vilamoura, Lipari, Petalidi and Bordeira, for an en-bloc sales price of $245M. In addition, it has entered into agreements with entities controlled by Economou to potentially sell its six Aframax tankers, Belmar, Calida, Alicante, Mareta, Saga and Daytona
Enterprise Products (EPD) said CEO Michael Creel to retire, A.J. Teague to succeed. The company also named Bryan Bulawa as CFO and W. Randall Fowler as Chief Administrative Officer

EARNINGS

Companies that missed consensus earnings expectations include:
Conn's (CONN), Medley Management (MDLY), Argos Therapeutics (ARGS)

SORL Auto Parts (SORL) reports Q4 EPS 20c, one estimate 12c

NEWSPAPERS/WEBSITES

McDonald's (MCD) to test all-day breakfast in San Diego area, WSJ reports
Cablevision (CVC) may offer to buy New York Daily News for $1, Reuters reports
Amazon (AMZN) hires former Air Line Pilots Association executive for drones, WSJ reports
Tesla's (TSLA) March China sales up 130%-150% month-over-month, Bloomberg reports
Oracle (ORCL) said to hire former HP (HPQ) executive Dave Donatelli, Business Insider reports

SYNDICATE

Axalta Coating (AXTA) files to sell 35M shares for Carlyle Group affiliates
Caesars Acquisition (CACQ) files to sell 521,062 shares for holders
Cerulean (CERU) files to sell $50M of common stock
Cincinnati Bell to sell common units of limited partners interests in CyrusOne (CONE)
Coherus Biosciences (CHRS) files to sell $100M in common stock
CyrusOne (CONE) files to sell 12.2M shares of common stock
Insmed (INSM) files to sell 10M shares of common stock
Intercept (ICPT) files to sell 1.2M shares of common stock
JG Wentworth (JGW) files to sell 16.7M shares of common stock for holders
Media General (MEG) files to sell 6.8M shares of voting common stock for holders
NovaBay (NBY) files to sell 25.7M shares of common stock for holders
Raptor Pharmaceuticals (RPTP) files to sell $75M of common stock
Synta Pharmaceuticals (SNTA) files to sell common stock
Tata Motors (TTM) files automatic mixed securities shelf
Trillium Therapeutics (TRIL) files to sell $50M in common stock

Just like in the case of Goldman's first of its kind MBS settlement which unleashed over $200 billion in legal charges against the US banking system (an IRR of about 1% relative to the criminal gains) and which in turn cast all the blame on the infamous Fabrice Tourre who was the solitary scapegoat for all of Goldman's Abacus transgressions, so when it comes to Libor rigging at one of the biggest culprits, Swiss bank UBS, all the senior executives are trying to put all the blame on 35-year old Tom Hayes who is the centerpiece of the prosecution's case against Libor manipulator.

The only problem: Hayes won't go down without a fight and unlike Tourre who may well have been promised a Swiss bank account with many zeroes in it on the other side, Hayes is fighting back and making it very clear that it wasn't just him who was rigging Libor. It was everyone. And everyone knew about it, from the traders on to the very top.

His proof: a Libor "manipulation" manual, presented as evidence in court.

According to Bloomberg, Hayes told prosecutors in 2013 that UBS Group AG distributed "an instruction manual on fixing Libor" to suit their trading positions. The Swiss bank’s e-mailed “Guide to Publishing Libor Rates,” which was shown to jurors by prosecutors in London Thursday, included an instruction for traders to adjust their submissions depending on their “delta/fixing position.”

“If 3m Libor” exposure “is 4,125 this means we are receiving” and “therefore we want to increase the fixing by 25 basis points,” according to the internal UBS guide. “If the number is negative then vice-versa.”

 

Hayes, the first person to stand trial for allegedly manipulating the London interbank offered rate, told prosecutors the document was evidence that Libor-rigging was standard operating procedure during his time at UBS.

 

The problem was exacerbated because the managers who oversaw Libor submissions also had large trading positions based on the benchmark, Hayes added.

 

“This is where what UBS is doing in terms of throwing individuals under the bus is really wrong,” Hayes told the Serious Fraud Office in 2013.

 

Hayes worked at UBS from 2006 to the end of 2009 before moving to Citigroup Inc. The 35-year-old is accused of eight counts of conspiracy to manipulate Libor, a benchmark for financial products worldwide.

Will Hayes' quest to diffuse responsibility and bring down more senior executives with him succeed? Hardly. Case in point: the man who worked alongside Goldman's Fab Tourre and directly supervised his work, just launched a hedge fund! Also from Bloomberg:

Egol, who wasn’t accused of any wrongdoing in the Abacus matter, testified at Tourre’s trial in 2013. Tourre was found liable for failing to disclose to investors in the security that hedge fund Paulson & Co. helped select the mortgage-backed assets underlying it. Egol, who earned an MBA in finance from the University of Chicago, worked at Goldman from 1998 until early last year.

Speaking of which, does Egol's brand new hedge fund, Firebreak Capital, still accept capital? After all, if there is anyone who can make money in any market, it is the person who only bets on a "sure thing", gets caught, gets away with it, and a few years later, gets another change to bet only on "sure things"...

It's shaping up to be a rough year for CEOs at Europe's most notorious rate rigging, scandal-laden investment banks.

Just three months after Brady Dougan left Credit Suisse and barely 30 days since Anshu Jain and Jürgen Fitschen tendered their resignations at Deutsche Bank, Barclays has shown CEO Antony Jenkins the door. 

The move comes as Chairman John McFarlane (who took over as Chairman in April) looks to restrucutre what he calls a "cumbersome bureauacracy." The bank did not mince words in its press release announcing the shakeup: 

"It became clear to all of us that a new set of skills were required for the period ahead. New leadership is required to accelerate the pace of execution going forward. Mr. McFarlane is ideally qualified in this respect.”

 

Here's WSJ with a look back at the outgoing Jenkins' stint at the helm:

1. Despite recent calls of dissatisfaction, the decision to name Mr. Jenkins as chief executive in August 2012 was broadly supported by analysts, and was described as “sensible”, “cool-headed” and “intelligent.” However, the honeymoon period was short-lived. One month later, Barclays was downgraded by Credit Suisse and J.P. Morgan over concerns about the profitability of its investment bank.
2. Mr. Jenkins was a Barclays man. He joined the bank as a graduate trainee in 1983. After a six-year spell at Citigroup, he returned in 2006 and by 2009 headed up its retail and business banking. This lack of investment banking acumen led some analysts to speculate that Mr. Jenkins might cut back the unit after its growth under Mr. Diamond. But this never really materialized. Despite some cut backs in fixed-income and commodities, Barclays remains one of the largest investment banks in Europe, despite underperforming its rivals in recent years. Mr. Jenkins defended the high-pay for the unit in 2014 after a poor year, stating that he had to avoid a “death spiral” of rainmakers leaving for rivals.
3. Mr. Jenkins didn’t waste time installing a number of projects aimed at moving Barclays away from the Libor-scandal that rocked the bank in 2012. First there was program dubbed “Transform”, aiming to “turnaround, return acceptable numbers, and sustain forward momentum”. Then there was Project Mango, a review of business practices in its investment bank. And then there was Project Electra, another review of the investment bank. During this, Barclays was dubbed itself a ‘go-to’ bank, with reviews into culture, pay, and performance reviews of managers.
4. On a long enough time frame, Mr. Jenkins seemed to be the right man for the job. Since he joined in August 2012, Barclays share price is up 52.68%, in comparison the FTSE 100 is up around 15%. On this basis – his reign has been success.  However, from August 2013 the share price has fallen 1.12%, compared with an increase of 2.5% for the FTSE 100. During this period Barclays has paid billion-dollar fines for forex rigging, Libor rigging, and failing to keep client assets segregated. It is still facing investigations from the Serious Fraud Office around its capital raising in 2008. While not related to Mr. Jenkins’ tenure, the fines have weighed down the bank’s share price.
5. But despite his rocky road, Mr. Jenkins is in good company, joining a group of blue-chip bank chief executives looking for new employment, including Anshu Jain, the former head of Deutsche Bank, and Peter Sands the former head of Standard Chartered. During Mr. Jenkins’s time as chief executive, he was paid a total of £10,011,000. He making money from his own exit: part of his pay, which continues until July 7 2016, is share-based. Shares are up more that 3% on news of his exit.

It's too bad, really. We're sure Jenkins was looking forward to a long and fruitful relationship with Richard Fisher, the former Dallas Fed chief Barclays hired last week as a "senior advisor."

*  *  *

Full statement from Barclays:

Antony Jenkins to leave Barclays; John McFarlane to become Executive Chairman

Barclays PLC and Barclays Bank PLC (Barclays) announce the departure of Antony Jenkins as Chief Executive and the appointment of John McFarlane as Executive Chairman pending the appointment of a new Chief Executive.  Subject to regulatory approval the change will come fully into effect on 17 July 2015 when John retires from FirstGroup.  A search for Mr Jenkins' successor is underway.  The interim results will be announced as planned on 29 July 2015. 

The Non-Executive Directors led by Sir Michael Rake, Deputy Chairman and Senior Independent Director,  concluded that new leadership is required to accelerate the pace of execution going forward and that John McFarlane is ideally qualified in this respect until a permanent successor is appointed.  This development does not signal any major change in strategy.

The Board recognises the contribution made by Antony Jenkins as Chief Executive over the past three years in incredibly difficult circumstances for the Group, and is extremely grateful to him in bringing the company to a much stronger position.  The situation he inherited would have challenged anyone facing the same issues.  This continued a period of achievement as head of Barclaycard and our Retail and Business Banking businesses.

Members of the Group Executive Committee will now report to Mr McFarlane, who will work particularly closely with Tushar Morzaria, Group Finance Director. 

Sir Michael Rake commented, "I reflected long and hard on the issue of Group leadership and discussed this with each of the Non-Executive Directors.  Notwithstanding Antony's significant achievements, it became clear to all of us that a new set of skills were required for the period ahead.  This does not take away from our appreciation of Antony's contribution at a critical time for the company."

Mr McFarlane said, "Whilst it is unfortunate that I have had little time to work with Antony, I respect and endorse the position of the Board in deciding that a change in leadership is required at this time.  I would add my personal thanks for everything that Antony has done for us.  He can be proud of his heritage, especially his excellent work on culture and values that we will continue.  I wish him well."

"Arriving at Barclays with a fresh perspective, it is evident that we have a standout brand with first-class retail, commercial and investment banking businesses.  Nevertheless, we are leaving value on the table and a new approach is required.  As a Group, if we aspire to bring shareholder returns forward, we need to be much more focused on what is attractive, what we are good at, and where we are good at it."

"We therefore need to improve revenue, costs and capital performance.  We also need to become more externally focused and deal with the internal bureaucracy by becoming leaner and more agile.  I have experienced good results in dealing with these matters elsewhere," he added.

Antony Jenkins said, "In the summer of 2012, I became Group Chief Executive at a particularly difficult time for Barclays.  It is easy to forget just how bad things were three years ago both for our industry and even more so for us.  I am very proud of the significant progress we have made since then.  Our capital position is much stronger, our business model is more balanced, we are much more disciplined on cost management, we have made good progress in rebuilding our reputation and we are seen as a leader in the application of technology to our business.  While the external environment has continued to be, and will remain, challenging the Group now has the resilience to overcome these challenges. 

"Most of all, I am proud that we have defined our culture through a common set of values for the Group and that the progress we have made and the tough decisions we have needed to take have all been achieved by applying these values and by focusing on the needs of all our stakeholders. 

"I want to thank the people of Barclays for their tireless efforts and support in achieving these results and for my own part I am looking forward to the professional opportunities that lie ahead."

• Stocks sour as Apple results leave bitter aftertaste (Reuters)
• Awkward Alliance Running Germany Exposed by Greek Crisis (BBG)
• Apple Faces Old Question of What’s Next After Record Profit (BBG)
• Lawmakers, White House Explore Tax Revamp for U.S. Firms Overseas (WSJ)
• Digital Misfits Link JPMorgan Hack to Pump-and-Dump Fraud (BBG)
• More Debt Traders at Risk as European Banks Report Results (BBG)
• Iran rejects sanctions extension beyond 10 years (Reuters)
• Iran’s Guards Cloud Western Firms’ Entry After Nuclear Deal (WSJ)
• China calls Japan foreign policy 'two-faced' (Reuters)
• Officer Threatened Sandra Bland With Taser, Police Video Shows (NYT)
• JFK, LaGuardia Airport Contract Workers to Strike Wednesday (BBG)
• Time Limits for Public Housing Get a Boost (WSJ)
• Gawker Reels Amid Identity Crisis (WSJ)
• Government Report Cites Shortfalls in Medicare’s Screening Process for Doctors (WSJ)
• Boston tower’s IPO offers unusual chance to invest (Boston Globe)
• New Jersey-New York City Trains Delayed After Power Faults (BBG)

Overnight Media Digest

WSJ

* Top lawmakers and the White House are in the early stages of discussing an ambitious overhaul of how the United States taxes its multinational firms, according to officials involved in the effort. (http://on.wsj.com/1gN84AZ)

* Western companies eager to take advantage of the new nuclear agreement with Iran face a host of challenges. One of the biggest challenges is Iran's Revolutionary Guard Corps.(http://on.wsj.com/1MHg6oZ)

* Gawker CEO Nick Denton is struggling to right the ship of his digital-media company, faced with high legal costs to defend against a suit filed by Hulk Hogan and the reputational damage caused by a yanked blog post. (http://on.wsj.com/1HHzVLK)

* Apple Inc's quarterly profit surged 38 percent, boosted again by strong demand for the company's latest iPhones and robust growth in China where sales more than doubled. (http://on.wsj.com/1JeG6JA)

* Thousands of medical providers signed up to bill Medicare using questionable addresses, and dozens of doctors enrolled despite disciplinary actions by state medical boards, according to a congressional probe of the program. (http://on.wsj.com/1KiSHwA)

* Momentum is building to let more housing authorities impose time limits or work requirements on tenants who move into public housing or receive the federal rental subsidy known as Section 8. (http://on.wsj.com/1gNkoBe)

* Ten months after a BP Plc rig exploded, killing 11 workers and spewing millions of barrels of oil into the Gulf of Mexico, Chief Executive Bob Dudley sat beside Mukesh Ambani, India's richest man, and announced a "transformational" deal to help the struggling company start growing again. (http://on.wsj.com/1Ie1U2K)

* Federal regulators are poised to approve AT&T Inc's $49 billion acquisition of DirecTV, clearing the way for the biggest media deal of the past year. (http://on.wsj.com/1CTXphKK)

FT

Several rivals of Google, including OpenX and AppNexus, which is part-owned by WPP Plc and Microsoft Corp, have expressed concerns to the European Commission in recent months, saying Google might be unlawfully oppressing competition in the market for advertising technology.

Vodafone Group Plc said the company's head of Europe, Philipp Humm, is set to leave as a part of its restructuring program in Europe. Also, the head of its most important markets on the continent will report directly to Vittorio Colao, chief executive.

UK's Serious Fraud Office offered Barclays Plc to settle a long-running criminal probe into its multi-billion pound fundraising from Qatari investors during the 2008 financial crisis.

Nokia Oyj is in talks with three German carmakers - BMW, Daimler AG and Audi, a Volkswagen AG unit - regarding a sale of its maps unit, HERE, for about 2.5 billion euros.

NYT

* David Daleiden, an anti-abortion activist, has provoked a storm with his video stings alleging that Planned Parenthood clinics are selling tissue from aborted fetuses for profit, a charge the group denies.(http://nyti.ms/1HQ4zjR)

* A dash-cam video showed that a state trooper threatened Sandra Bland with a Taser when she was arrested after a traffic stop three days before she was found hanging in her jail cell. (http://nyti.ms/1JweUld)

* Officials say that Mohammod Abdulazeez, the gunman who killed five service members last week in Chattanooga, searched the Internet in the days leading up to the attack for Islamic materials about martyrdom. (http://nyti.ms/1SATlVi)

* Four men in Florida and Israel were arrested in connection with investment schemes that were said to be related to a cyberattack at JPMorgan Chase and Co. (http://nyti.ms/1MnBoep)

* Apple Inc reported double-digit increases in sales and profit for its fiscal third quarter, a rate of growth that is highly unusual for a company of its size. While the quarter's phone sales were one-third higher than a year ago, at 47.5 million, they fell short of analysts' estimates, and the stock fell. (http://nyti.ms/1KjyOFM)

* A $7.5 billion accounting charge for Microsoft Corp's acquisition of Nokia Oyj was a drag on the software maker's fourth quarter. For its fiscal fourth quarter, which ended June 30, Microsoft said its net loss was $3.2 billion, compared with a net income of $4.61 billion during the same period last year. (http://nyti.ms/1CUoxgB)

China

CHINA SECURITIES JOURNAL

- China Banking Regulatory Commission would continue to encourage private funds to invest in the banking industry, the regulator's chairman, Shang Fulin, wrote in an article

- China's insurance fees hit 137 million yuan ($22.06 million) in the first half of this year, said Xiang Junbo, chairman of China Insurance Regulatory Commission.

SECURITIES TIMES

- Haitong Securities said it has launched employee stock ownership plan that would allow its staff to buy up to 1.15 billion shares.

CHINA DAILY

- China's Ministry of Transport said it plans to reduce the number of tollways and open up more road investment opportunities to private capital.

Britain

The Times

LABOUR WAR AS CORBYN CLOSES IN ON LEADERSHIP

The hard-left MP Jeremy Corbyn is on course to become the next Labour leader, according to the first public poll of the campaign. (http://thetim.es/1Mj7RkW)

VERDICT ON 'ABUSE' OF SMES DELAYED AGAIN

The findings of a long-awaited Financial Conduct Authority report into Royal Bank of Scotland Group Plc's treatment of distressed business customers have been delayed for a third time. (http://thetim.es/1Kjs7AG)

The Guardian

SFO MULLS BARCLAYS DEAL OVER BANKING CRISIS FUNDING

The Serious Fraud Office has raised the possibility of offering Barclays Plc a deferred prosecution agreement as part of its long-running investigation into the way the bank raised billions of pounds from Middle Eastern investors during the height of the 2008 banking crisis. (http://bit.ly/1RO5mvv)

LOCAL AUTHORITY SPENDING CUTS HELP GOVERNMENT TO BORROW LESS IN JUNE

Lower spending by local authorities provided George Osborne with a boost last month by cutting the amount the government needed to borrow to balance taxes and spending by almost 1 billion stg to its lowest June total in seven years. (http://bit.ly/1KjtdMM)

The Telegraph

TONY BLAIR TO WARN LABOUR AGAINST LURCHING TO LEFT

Tony Blair, the former Prime Minister, is expected to warn Labour against lurching to the left in an intervention which will be seen as a significant boost for moderniser Liz Kendall. (http://bit.ly/1efbBWR)

UK DEFICIT AT LOWEST IN SEVEN YEARS AS TAX RECEIPTS GROW

UK government borrowing last month hit its lowest level for any June since 2008, as the state's books were improved by record-breaking tax receipts. (http://bit.ly/1fkcGgX)

Sky News

FIRST UTILITY PICKS IPO BANKS AS CVC CIRCLES

First Utility <IPO-FRUT.L> is close to appointing Credit Suisse and JP Morgan to handle a public listing of the company. (http://bit.ly/1g27dfL)

NPOWER ORDERED TO GIVE CUSTOMERS FREE ENERGY

One of the 'big six' energy firms, Npower, has been told to give free energy to customers whose complaints it has failed to resolve on time. The industry regulator said households which had an ombudsman ruling outstanding against Npower for more than 28 days would benefit and they could also have debts written off. (http://bit.ly/1Mnj70x)

The Independent

PAYDAY LENDERS' BODY THE CFA SAYS CRACKDOWN ON SHORT-TERM LENDING HAS FORCED BORROWERS TO TURN TO ILLEGAL LOAN SHARKS

Borrowers could become prey for controversial 'loan sharks' because of a crackdown on payday lending, according to the Consumer Finance Association. (http://ind.pn/1GAimci)

• Deadline Draws Near for Puerto Rico (WSJ)
• U.S. to defend Syrian rebels with airpower, including from Assad (Reuters)
• Alpha Natural Resources to Seek Chapter 11 (WSJ)
• Iran’s Rouhani Says Nuclear Deal ‘More Than What Was Imagined’ (BBG)
• Cables Show Hillary Clinton's State Department Deeply Involved in Trans-Pacific Partnership (IBTimes)
• Win or Lose, U.S. Stocks Get Biggest Earnings Bang Since ’12 (BBG)
• Weaker China factories argue for more policy support as stocks swoon (Reuters)
• French riot police disperse migrants at Channel Tunnel (AP)
• Stock Guru Bill Miller Is Back But the Questions and Pain Linger (BBG)
• Dole and Other Companies Sour on Delaware as Corporate Haven (WSJ)
• Misery deepens for those in Puerto Rico who can't escape economic crisis (USNews)
• California Has a Plan to End the Auto Industry as We Know It (BBG)
• China wants no talk of South China Sea at upcoming ASEAN meeting (Reuters)
• Deadbeat Ex-Billionaire Batista Daring Bondholders to Seize Ship (BBG)
• Manhunt under way for killer of Memphis police officer (Reuters)
• Hunt for MH370: Australia Won’t Extend Search Effort Without New Clues (WSJ)

Overnight Media Digest

WSJ

* U.S. President Barack Obama authorized the use of air power to defend a new U.S.-backed fighting force in Syria should it come under attack from Syrian government forces or other groups. (http://on.wsj.com/1HjRYDX)

* Delaware, the most popular state for corporate registrations, now has challengers who say it doesn't offer enough protections against shareholder lawsuits. (http://on.wsj.com/1IT1sNO)

* A new rule mandating the first-ever federal limits on power-plant carbon emissions aims to change the way Americans make and consume electricity, accelerating a shift already under way toward cleaner fuels, renewable energy and consumer-generated power. (http://on.wsj.com/1MGHruI)

* Coal Miner Alpha Natural Resources is expected to file for chapter 11 bankruptcy protection early Monday to cut its more than $3 billion debt load. (http://on.wsj.com/1eMiRJZ)

* China's answer to Airbnb Inc, Tujia.com, raised $300 million in its latest funding round, underscoring strong investor demand for Chinese startups despite volatility in the country's domestic stock market. The fundraising valued the Chinese home-rental site at more than $1 billion, just a fraction of the $25.5 billion valuation Airbnb achieved in June. (http://on.wsj.com/1IFpZ7d)

FT

US hedge fund ValueAct, which has become Rolls-Royce's largest shareholder, is urging the British manufacturer of aerospace engines to speed up cost cuts in its core business, according to people familiar with the fund's thinking.

Japanese police arrested the founder and former head of Mt. Gox, Mark Karpeles over allegations of manipulating the exchange's computer system to inflate his own company account. Mt. Gox, one of the world's biggest Bitcoin exchange in its days, filed for bankruptcy last year after it admitted it didn't know the whereabouts of 850,000 Bitcoins valued at about $500 mln.

Italian bank UniCredit's Chief Executive Federico Ghizzoni is exploring strategic options to boost profit and address investor concerns. UniCredit's CFO Marina Natale maybe given more powers that may sideline the bank's chief risk officer, according to people familiar with the matter.

Swift growth in LEDs has attracted aggressive new low-cost competitors from Asia, giving traditional players Philips , Siemens and General Electric a run for their money. Philips said last year, it will break up to create a standalone lighting company while Siemens, the German engineering group, spun off its Osram lighting unit in 2013.

NYT

* On Monday, U.S. President Barack Obama is expected to unveil his signature climate change policy, a set of Environmental Protection Agency regulations designed to sharply reduce greenhouse gas emissions from the nation's power plants. If the plan survives legal challenges, it could lead to the closing of hundreds of polluting coal-fired power plants, freeze future construction of such plants and lead to an explosion in production of wind and solar energy. (http://nyti.ms/1E4i39X)

* AT&T Inc is making a new nationwide offering, the first of its kind, that combines television and wireless phone service for $200 a month for the first 12 months. The announcement of this package, available to customers starting Aug. 10, came a little more than a week after AT&T closed its $48.5 billion takeover of satellite company DirecTV, forming the country's largest television distributor, with about 26 million subscribers. (http://nyti.ms/1KKU2MV)

* Microsoft Corp has agreed to invest in Uber Technologies Inc, according to people with knowledge of the matter, as part of a funding round that values the ride-hailing company at around $51 billion. (http://nyti.ms/1MFzl4x)

Canada

THE GLOBE AND MAIL

** For the first time since 1993, a large number of federal seats in Alberta are up for grabs. Polling suggests that support in the province for the federal Conservatives has decreased by more than 15 percentage points since the previous election. These Conservative polling woes closely follow the shock NDP provincial win in May. (http://bit.ly/1IemcfG)

** Greece's stock market plunged nearly 23 percent on Monday when it opened after a five-week shutdown brought on by fears the country was about to be dumped from the euro zone. (http://bit.ly/1Ijs6Kh)

** As federal political parties start campaigning for the upcoming federal election, small business owners and advocates are waiting for more detailed platforms to see which parties will offer the most supportive policies, says Dan Kelly, president and CEO of the Canadian Federation of Independent Business (CFIB) (http://bit.ly/1KLk6HO)

NATIONAL POST

** It's time Quebec took its rightful place at the table of power instead of continuing a 22-year tradition of sending opposition MPs to Ottawa, Prime Minister Stephen Harper said on Sunday. (http://bit.ly/1SAAj6P)

** Liberal leader Justin Trudeau kicked off his federal election campaign in Vancouver by promising to fight for the middle class, while cutting perks for the richest Canadians. (http://bit.ly/1gDKqqT)

China

SECURITIES TIMES

- Citic Securities no longer owns a stake in the fund with Citadel LLC, the U.S.-based hedge fund which had its trading restricted by China's securities regulator on Friday, the firm told Securities News. The company sold its stake in the fund last year, a company representative told the paper.

CHINA DAILY

- The average PM 2.5 air pollution concentration in 10 polluted Chinese cities improved by 11.9 percent in 2014, according to a report from the Clean Air Alliance of China, a Beijing think tank.

PEOPLE'S DAILY

- Looking ahead to the economy for the second half of the year, it will be important to maintain strategic direction, push forward strategic economic institutional adjustment, control risks, and discover and address potential contradictions in the economy, the newspaper said in a front-page editorial.

Britain

The Times

Intercontinental Hotels Group is weighing bids for rivals Fairmont and Movenpick after ruling itself out of a multibillion-pound merger with America's Starwood last week. (http://thetim.es/1IEkDZZ)

British Airways has pushed out the Chairman of its pension scheme Paul Spencer, after a row over an investment switch that could have seen the plan's deficit soar. His departure shocked pensions experts. (http://thetim.es/1IEiOMu)

The Guardian

At least two, perhaps three, of the nine members of the Bank of England's interest rate-setting committee are expected to cast their votes for a rate rise. Martin Weale and Ian McCafferty, who voted for rate rises throughout the second half of 2014 before changing their minds as inflation plunged to zero earlier this year, have signalled they could soon be ready to see borrowing costs rise. (http://bit.ly/1E3IDjB)

Greek investors expect a tumultuous day's trading when Athens' stock market reopens on Monday after a five-week shutdown. (http://bit.ly/1E3IPPQ)

The Telegraph

James Galbraith, a professor of government at the University of Texas and long-time friend of ex-Greek finance minister Yanis Varoufakis has denied being involved in a "criminal gang" intent on bringing the drachma back to Greece. The clandestine plans were made public last week following the airing of a private conversation between Varoufakis and international investors in London. (http://bit.ly/1E3GoNg)

Former Conservative leader Michael Howard is to be questioned by the Britain's Serious Fraud Office as part of its criminal investigation into Soma Oil and Gas in relation to allegations of corruption in Somalia. (http://bit.ly/1E3Gwwe)

Sky News

HSBC Holdings plc, Europe's largest bank will disclose in its interim results that it is adding a substantial sum to the $550 mln provision it has already allocated to resolve a number of investigations on both sides of the Atlantic. (http://bit.ly/1Iy941T)

Business groups are warning that the Calais migrant crisis is "a threat to the long-term viability" of British companies - as firms begin to count the cost of delays to travel through the Channel Tunnel. (http://bit.ly/1E3HbxL)

The Independent

Britain's shadow Chancellor Chris Leslie has attacked the anti-austerity agenda of the Labour leadership candidate Jeremy Corbyn, warning it would hurt poor people the most. Leslie issued a wake-up call to Labour members to reject what he called a "starry-eyed, hard left" economic strategy, amid growing signs that Corbyn could pull off a shock victory next month. (http://ind.pn/1E3HTeg)

British Airways said it is set to change its hand baggage allowance this summer with a new, reduced policy which may require fliers to fork out money for a new holdall or suitcase for upcoming journeys. (http://ind.pn/1E3I8Gg)