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Frontrunning:
Headline of the day goes to... Cold weather seen temporarily slowing U.S. economy (Reuters)
Americans Want to Pull Back From World Stage, Poll Finds (WSJ)
U.S. Plans to Charge BNP Over Sanctions (WSJ)
What about Jay Carney: Putin Threat to Retaliate for Sanctions Carries Risks (BBG)
Fed expected to take further step toward ending bond buying (Reuters)
A Fed-Watcher’s Guide to FOMC Day: Steady Taper, Green Shoots (BBG)
Alstom accepts 10 billion euro GE bid for its energy unit (Reuters)
BOJ projects inflation exceeding 2 percent, keeps bullish view intact (Reuters)
In Drug Mergers, There's One Sure Bet: The Layoffs (WSJ)
Orbital Sciences Soars Out of Musk’s Shadow in Space Race (BBG)
London Travel May Ease as Subway Commuters Brave Walkout (BBG)
Overnight Media Digest
WSJ
* Americans in large numbers want the United States to reduce its role in world affairs even as a showdown with Russia over Ukraine preoccupies Washington, a Wall Street Journal/NBC News poll finds. In a marked change from past decades, nearly half of those surveyed want the United States to be less active on the global stage, with fewer than one-fifth calling for more active engagement. (r.reuters.com/kyv88v)
* Federal prosecutors are planning to criminally charge BNP Paribas SA for doing business with countries subject to U.S. economic sanctions, including Iran, Sudan and Cuba. If the government goes ahead with charges against the parent of the Paris-based bank, it could lead to the first guilty plea by a bank in decades. (r.reuters.com/huv88v)
* French industrial conglomerate Alstom on Wednesday decided to review a 12.35 billion euro ($17.12 billion) acquisition bid made by General Electric for its power equipment division by the end of the month, giving GE a lead over rival Siemens. Alstom's board unanimously acknowledged the "strategic and industrial merits" of the GE offer. (r.reuters.com/suv88v)
* Johnson & Johnson, the largest maker of a device used in a popular uterine surgery, said it has suspended sales of the tools called power morcellators amid concerns about their potential to spread a rare but deadly cancer. (r.reuters.com/jev88v)
* Energy Future, the former TXU, filed for one of the biggest bankruptcies on record, surrendering to a misguided bet on natural-gas prices and a debt load of over $40 billion. (r.reuters.com/puv88v)
* In an unprecedented move, the National Basketball Association commissioner on Tuesday banned the owner of the Los Angeles Clippers from running his team or associating with the league for life, after recordings of his racist comments became public, causing outrage on the court and sending advertisers fleeing. Commissioner Adam Silver also levied a $2.5 million fine against Clippers owner Donald Sterling. (r.reuters.com/kev88v)
* Chinese pork producer WH Group scrapped what could have been the world's biggest initial public offering in a year when investors balked at the high price. The failed IPO stands in contrast to the success eight months ago when WH Group, then known as Shuanghui International Holdings, bought Smithfield Foods in the biggest-ever Chinese acquisition of a U.S. company. (r.reuters.com/xuv88v)
FT
France's Alstom accepted General Electric's $12 billion-plus all-cash offer for its energy arm, but the engineering company left the door open for a rival bid from Germany's Siemens.
Barclays will say next week that it is creating a "bad bank", hoping to transform its struggling investment banking operations that were dealt a further blow with the exit of the highly regarded head of its U.S. business.
Russia's state-controlled gas giant Gazprom said it was taking steps to mitigate the impact of possible further Western sanctions as it posted a 7 percent drop in net profit last year.
Twitter's stock fell 11 percent, its lowest since the microblogger's initial public offering, when it failed to overcome a trend of slow user growth, shaking investor confidence that it could ever grow to the size of Facebook .
WH Group has pulled the plug on its $2 billion Hong Kong float after failing to attract sufficient demand, even though the Chinese pork producer had already halved the size of the fundraising last week.
NYT
* Americans in large numbers want the United States to reduce its role in world affairs even as a showdown with Russia over Ukraine preoccupies Washington, a Wall Street Journal/NBC News poll finds. In a marked change from past decades, nearly half of those surveyed want the United States to be less active on the global stage, with fewer than one-fifth calling for more active engagement. (r.reuters.com/kyv88v)
* Federal prosecutors are planning to criminally charge BNP Paribas SA for doing business with countries subject to U.S. economic sanctions, including Iran, Sudan and Cuba. If the government goes ahead with charges against the parent of the Paris-based bank, it could lead to the first guilty plea by a bank in decades. (r.reuters.com/huv88v)
* French industrial conglomerate Alstom on Wednesday decided to review a 12.35 billion euro ($17.12 billion) acquisition bid made by General Electric for its power equipment division by the end of the month, giving GE a lead over rival Siemens. Alstom's board unanimously acknowledged the "strategic and industrial merits" of the GE offer. (r.reuters.com/suv88v)
* Johnson & Johnson, the largest maker of a device used in a popular uterine surgery, said it has suspended sales of the tools called power morcellators amid concerns about their potential to spread a rare but deadly cancer. (r.reuters.com/jev88v)
* Energy Future, the former TXU, filed for one of the biggest bankruptcies on record, surrendering to a misguided bet on natural-gas prices and a debt load of over $40 billion. (r.reuters.com/puv88v)
* In an unprecedented move, the National Basketball Association commissioner on Tuesday banned the owner of the Los Angeles Clippers from running his team or associating with the league for life, after recordings of his racist comments became public, causing outrage on the court and sending advertisers fleeing. Commissioner Adam Silver also levied a $2.5 million fine against Clippers owner Donald Sterling. (r.reuters.com/kev88v)
* Chinese pork producer WH Group scrapped what could have been the world's biggest initial public offering in a year when investors balked at the high price. The failed IPO stands in contrast to the success eight months ago when WH Group, then known as Shuanghui International Holdings, bought Smithfield Foods in the biggest-ever Chinese acquisition of a U.S. company. (r.re* Federal prosecutors are nearing criminal charges against some of the world's biggest banks, according to lawyers briefed on the matter, a development that could produce the first guilty plea from a major bank in more than two decades. In doing so, prosecutors are confronting the popular belief that Wall Street institutions have grown so important to the economy that they cannot be charged. (r.reuters.com/duv88v)
* The TXU Corp, the Texas energy giant that was taken over in a record-shattering buyout in 2007, finally collapsed into a long-awaited bankruptcy early Tuesday. On the surface, the long, slow decline of the company, renamed Energy Future Holdings , has caused few ripples, though it is the state's largest electricity generator and provides power to 3 million customers. (r.reuters.com/fuv88v)
* British bank Barclays Plc said that Hugh McGee, head of its business in the United States, will leave on Wednesday, becoming the latest in a series of senior executives to depart in the last two years. (r.reuters.com/guv88v)
* Wal-Mart Stores Inc plans to add a new consumer service to its arsenal of offerings on Wednesday, teaming up with a website that helps customers to review prices at several insurance companies and contrast them with their current auto insurance. (r.reuters.com/juv88v)
* In an effort to end what he sees as another way into borrowers' accounts, Benjamin M. Lawsky, New York State's top financial regulator, is sending cease-and-desist letters to 20 companies suspected of making illegal payday loans, 12 of which appear to use debit card information to do so. (r.reuters.com/kuv88v)
* In a pair of unanimous decisions, the Supreme Court on Tuesday made it easier for the winning side in patent cases to recover its legal fees from the loser. The decisions were welcomed by some technology companies, which said the rulings would help address what they say are abusive and coercive lawsuits brought by "patent trolls," or companies that buy patents not to use them but to collect royalties and damages. (r.reuters.com/zuv88v)ters.com/xuv88v)
China
CHINA SECURITIES JOURNAL
- Sources told reporters that new detailed standards regarding the regulation of IPOs, in particular pertaining to underwriting, subscription processes and private equity should be released in the near future.
- Profits in a total of 2,473 listed companies hit 2.24 trillion yuan ($357.94 billion) in 2014, rising 14.68 percent from a year earlier, Wind Information data showed.
SHANGHAI SECURITIES NEWS
- Profits at listed Chinese companies beat expectations in 2013, rising over 14 percent.
SHANGHAI DAILY
- The Supreme Court ruled that all parole and early-release hearings involving officials imprisoned for graft must be open to the public.
Britain
The Telegraph
ROLLS-ROYCE IN TALKS WITH SIEMENS OVER SALE OF GAS TURBINE BUSINESS
Siemens is in talks to buy Rolls-Royce's gas turbine and compressor business for 900 million pounds ($1.52 billion), but the German firm looks set to miss out on Alstom's energy assets. (http://link.reuters.com/cet88v)
CO-OP DISMISSES BOARD MEMBER FOLLOWING LEAKS
The Co-operative Group has dismissed one of its board members following a series of leaks which led to the departure of former Chief Executive Euan Sutherland. (http://link.reuters.com/bet88v)
SCOTTISH INDEPENDENCE WILL TRIGGER MASS EXODUS OF FINANCIAL SERVICES
Scottish households will see a double-digit decline in living standards if the country votes to become independent, as secession triggers a mass exodus of the financial services industry, according to a respected think-tank. (http://link.reuters.com/zys88v)
'UK SHOULD GET OUT OF THE EU,' SAYS FORMER FRENCH PM
Britain should leave Europe because it is killing the European Union dream, a former French Prime Minister has said. In a blistering attack, Michel Rocard, a grandee of the French Socialist Party who served as premier under Francois Mitterrand, identified Britain as the source of all the EU's problems.
CUBA ACCUSES UK OF BEING ANTI-CAPITALIST OVER PLAIN PACKAGING PLANS
Cuba has accused Britain of being anti-capitalist and threatening free trade with its plans introduce plain packaging on cigarettes and cigars. (http://link.reuters.com/kat88v)
The Guardian
BARCLAYS' MOST SENIOR BANKER IN U.S. TO LEAVE
Barclays most senior banker in the U.S. is to leave, triggering fears of an exodus of staff as the business prepares for another restructuring of its controversial investment banking arm. (http://link.reuters.com/wat88v)
VINCE CABLE REBUTS CLAIM GOVERNMENT MASSIVELY UNDERVALUED ROYAL MAIL
Vince Cable has continued to contest claims that the government significantly undervalued Royal Mail, costing taxpayers 750 million pounds on the day of the postal service was privatised in October. (http://link.reuters.com/zat88v)
ANGLO IRISH BANK PAIR AVOID PRISON DESPITE BEING FOUND GUILTY
Two former Anglo Irish Bank executives have been spared jaily despite being found guilty of handing out illegal loans from the financial institution at the heart of Ireland's economic collapse. (http://link.reuters.com/xat88v)
STING OF ZERO-HOURS CONTRACTS REVEALED
Almost three in 10 people on zero-hours contracts are unable to work as many hours as they would like, according to a study, which shows that many of the UK's lowest paid people are gaining little benefit from the accelerating recovery. (http://link.reuters.com/vat88v)
The Times
PFIZER RAMPS UP PRESSURE AS ASTRA BID WINS SUPPORT
The head of Pfizer has jetted into London to begin a whistlestop tour of City institutions as the U.S. drugs company scrambles to drum up support for a hostile 58.7 billion pound takeover of AstraZeneca. (http://link.reuters.com/det88v)
LABOUR WANTS LAW CHANGE TO BLOCK HOSTILE TAKEOVERS
Britain's Labour party is examining changes to the law to give company boards greater powers to block hostile foreign takeovers. Chuka Umunna, the shadow business secretary, wants greater powers to "stop the rush" towards takeovers amid the unfolding attempt by Pfizer, the U.S. pharmaceutical giant, to snap up AstraZeneca. (http://link.reuters.com/qat88v)
Fly On The Wall 7:00 AM Market Snapshot
ECONOMIC REPORTS
Domestic economic reports scheduled today include:
ADP employment report for April at 8:15--consensus 210K
Q1 real GDP at 8:30--consensus up 1.1%
Chicago business barometer for April at 9:45--consensus 56.9
FOMC meeting announcement at 14:00
ANALYST RESEARCH
Upgrades
Aspen Technology (AZPN) upgraded to Buy from Hold at Summit Research
Beazer Homes (BZH) upgraded to Buy from Neutral at Sterne Agee
Cerner (CERN) upgraded to Buy from Neutral at UBS
Compass Minerals (CMP) upgraded to Overweight from Neutral at JPMorgan
El Paso Pipeline (EPB) upgraded to Neutral from Underperform at BofA/Merrill
Highwoods Properties (HIW) upgraded to Buy from Hold at Stifel
Parker-Hannifin (PH) upgraded to Equal Weight from Underweight at Morgan Stanley
Pioneer Energy (PES) upgraded to Buy from Hold at Wunderlich
S&T Bancorp (STBA) upgraded to Outperform from Market Perform at Keefe Bruyette
Semiconductor Manufacturing (SMI) upgraded to Buy from Neutral at BofA/Merrill
StanCorp (SFG) upgraded to Equal Weight from Underweight at Morgan Stanley
Texas Capital (TCBI) upgraded to Buy from Hold at Deutsche Bank
Trinity Biotech (TRIB) upgraded to Buy from Neutral at Roth Capital
Waddell & Reed (WDR) upgraded to Outperform from Market Perform at Keefe Bruyette
Xylem (XYL) upgraded to Buy from Hold at Stifel
Downgrades
ABB (ABB) downgraded to Neutral from Buy at BofA/Merrill
ABB (ABB) downgraded to Sector Perform from Outperform at RBC Capital
AGCO (AGCO) downgraded to Neutral from Overweight at Piper Jaffray
ARM Holdings (ARMH) downgraded to Neutral from Buy at Citigroup
Cloud Peak (CLD) downgraded to Market Perform from Outperform at BMO Capital
Coach (COH) downgraded to Neutral from Buy at Citigroup
Corning (GLW) downgraded to Neutral from Overweight at HSBC
Dresser-Rand (DRC) downgraded to Underweight from Equal Weight at Morgan Stanley
eBay (EBAY) downgraded to Neutral from Overweight at Atlantic Equities
MarkWest Energy (MWE) downgraded to Equalweight from Overweight at Barclays
Nordstrom (JWN) downgraded to Hold from Buy at McAdams Wright
Orbital Sciences (ORB) downgraded to Hold from Buy at KeyBanc
Regional Management (RM) downgraded to Market Perform from Outperform at BMO Capital
Initiations
Aflac (AFL) assumed with a Market Perform at Keefe Bruyette
Michael Kors (KORS) initiated with a Buy at Janney Capital
Navient (NAVIV) initiated with a Buy at Compass Point
Sallie Mae Bank (SLMVV) initiated with a Buy at Compass Point
COMPANY NEWS
Exelon (EXC) to acquire Pepco Holdings (POM) for $27.25 per share in cash
GE (GE) offered $13.5B enterprise value to acquire businesses of Alstom Thermal (ALSMY)
Alstom (ALSMY) says 'considering' acquisition of Energy unit by GE (GE)
Twitter (TWTR) reported monthly active users 255M as of March 31
eBay (EBAY) announced that it repatriated $9B worth of cash, on which it took a $3B charge in Q1
Southern Company (SO) to take $380M charge in Q1 for cost of Kemper County plant
Microsoft (MSFT), BesTV to bring Xbox One to China in September
Auxilium (AUXL) cut its FY14 revenue view to $380M-$420M from $450M-$490M, consensus $484.11M, and cut its net income view to ($15M)-$0 from $45M-$50M
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
eBay (EBAY), Twitter (TWTR), Wi-LAN (WILN), Pinnacle Entertainment (PNK), Barrick Gold (ABX), Hyatt Hotels (H), WellPoint (WLP), ICON plc (ICLR), Euronet (EEFT), Flushing Financial (FFIC), Aegion (AEGN), RF Micro Devices (RFMD), Genworth (GNW), SM Energy (SM), Green Plains (GPRE), Panera Bread (PNRA), HCC Insurance (HCC), Silicon Image (SIMG), Trinity Industries (TRN), Concur (CNQR), NuVasive (NUVA), Aspen Technology (AZPN), GFI Group (GFIG), C.H. Robinson (CHRW), Dun & Bradstreet (DNB), Nanometrics (NANO), RenaissanceRe (RNR), Cascade Microtech (CSCD), M/A-COM (MTSI), Marriott (MAR), Columbia Sportswear (COLM), U.S. Steel (X), RPX Corp. (RPXC), LogMeln (LOGM), Dolby (DLB), Anika Therapeutics (ANIK), Owens-Illinois (OI), EXCO Resources (XCO), National Instruments (NATI), Hanover Insurance (THG), Rex Energy (REXX), Riverbed (RVBD), Calix (CALX), Newfield Exploration (NFX), Huron (HURN), SolarWinds (SWI), EZCORP (EZPW), Blackstone Mortgage (BXMT), Cray (CRAY), Fiserv (FISV), Dynamic Materials (BOOM), Seagate (STX), Edison International (EIX), Plantronics (PLT)
Companies that missed consensus earnings expectations include:
DreamWorks Animation (DWA), AMC Entertainment (AMC), Ingredion (INGR), Carlyle Group (CG), Olympic Steel (ZEUS), Regis (RGS), ClickSoftware (CKSW), Exelon (EXC), Allot Communications (ALLT), AXIS Capital (AXS), Heritage Oaks (HEOP), Watts Water (WTS), Virtus Investment Partners (VRTS), First Financial Bancorp (FFBC), Willis Group (WSH), FEI Company (FEIC), Usana (USNA), Franklin Electric (FELE), Corporate Executive Board (CEB), Cloud Peak (CLD), ZELTIQ (ZLTQ), CAI International (CAP), Power Integrations (POWI), Vistaprint (VPRT), Trulia (TRLA), Vanguard Natural (VNR), Town Sports (CLUB), Cempra (CEMP)
Companies that matched consensus earnings expectations include:
Radware (RDWR), AudioCodes (AUDC), Timmins Gold (TGD), Mueller Water (MWA), Correction: Celadon Group (CGI), Inphi (IPHI), TECO Energy (TE), Ikanos (IKAN), Verisk Analytics (VRSK), HFF Inc. (HF), Bravo Brio Restaurant (BBRG), Epiq Systems (EPIQ), Big 5 Sporting (BGFV), Chemed (CHE), Express Scripts (ESRX), Acadia Healthcare (ACHC)
NEWSPAPERS/WEBSITES
U.S. close to filing criminal charges against large banks (BNPQY, CS), NY Times says
Sanofi (SNY) working with Evercore on drug sale, Reuters reports
Morgan Stanley (MS) planning a retail banking push, FT reports
GE (GE) bid of over $12B for Alstom (ALSMY) energy assets accepted, WSJ reports
GE (GE) says discussions with France on Alstom (ALSMY) offer 'productive,' Reuters says
Sotheby's (BID) board members agreed with Loeb's critiques, WSJ says
Bayer (BAYRY) offers assets, cash for Merck (MRK) OTC unit, Bloomberg says
SYNDICATE
CAI International (CAP) files to sell 3M common shares for holders
Enstar Group (ESGR) files to sell 2.61M ordinary shares for holders
HD Supply (HDS) files to sell 30M shares of common stock for holders
Liquid Holdings (LIQD) files to sell 10M shares of common stock for holders
Seaspan (SSW) files to sell 3.63M common shares for holders
Wet Seal (WTSL) files to sell 28.61M common shares for holders
ePlus (PLUS) 1.573M share Secondary priced at $50.00
Pre Market Movers
Top Gaining Stocks
Price %Change
SYMX Synthesis Energy ... 2.21 29.24%
POM Pepco Holdings In... 26.69 17.11%
URA Global X Uranium ... 16.88 10.33%
ENR Energizer Holding... 105.98 8.46%
SGYP Synergy Pharmaceu... 5.20 7.88%
TASR Taser Internation... 18.39 7.67%
OXGN Oxigene Inc. 3.44 7.50%
SYN Synthetic Biologi... 2.25 7.14%
NVMI Nova Measuring In... 10.45 7.07%
AZPN Aspen Technology ... 40.05 6.09%
TRN Trinity Industrie... 76.49 5.52%
CHU China Unicom (hon... 15.17 5.49%
GRMN Garmin Ltd. 58.04 5.35%
ANIK Anika Therapeutic... 42.99 5.08%
FNV Franco Nevada Cor... 51.05 5.02%
MWA Mueller Water Pro... 9.64 4.90%
JDST Direxion Daily Jr... 22.55 4.45%
GSL Global Ship Lease... 3.96 4.21%
GNW Genworth Financia... 18.09 4.03%
ORAN Orange 15.88 3.12%
Top Losing Stocks
Price %Change
TWTR Twitter Inc 37.10 -12.95%
AUXL Auxilium Pharmace... 25.00 -8.63%
NNVC Nanoviricides Inc... 3.00 -8.54%
LL Lumber Liquidator... 79.00 -8.14%
NDLS Noodles & Company... 35.40 -6.84%
ESRX Express Scripts H... 67.00 -5.65%
BIOS Bioscrip Inc. 6.72 -4.41%
EBAY ebay Inc. 52.21 -4.27%
JNUG Direxion Daily Jr... 19.49 -4.27%
AUY Yamana Gold Inc. ... 7.34 -3.93%
HDS HD Supply Holding... 25.75 -3.59%
VNR Vanguard Natural ... 30.00 -3.41%
BIOF Biofuel Energy Co... 7.20 -2.83%
GIMO Gigamon 15.14 -2.76%
MO Altria Group Inc.... 39.11 -2.52%
NBG National Bank of ... 3.88 -2.51%
YY YY Inc. 58.45 -2.22%
LNKD Linkedin 150.00 -2.11%
LOCK Lifelock 15.00 -2.09%
NUGT Direxion Daily Go... 36.44 -2.04%
Read more at http://thestockmarketwatch.com/markets/pre-market/#L9PsfH7mAlsYeOGh.99
data:
MBA Purchase Applications
[Report][Bullet7:00 AM ET
ADP Employment Report
[Report][djStar]8:15 AM ET
GDP
[Report][Star]8:30 AM ET
Employment Cost Index
[Report][djStar]8:30 AM ET
Treasury Refunding Announcement
[Bullet8:30 AM ET
3-Yr Note Announcement
[Bullet8:30 AM ET
10-Yr Note Announcement
[Bullet8:30 AM ET
30-Yr Bond Announcement
[Bullet8:30 AM ET
Chicago PMI
[Report][djStar]9:45 AM ET
EIA Petroleum Status Report
[djStar]10:30 AM ET
FOMC Meeting Announcement
[Report][Star]2:00 PM ET
Farm Prices
[Bullet3:00 PM ET
Futures -2
Good morning
$GOGO ~ down -$3.15 or -17% on AT&T inflight news
frontrunning:
EU regulators unveil details of bank stress tests (FT)
Just use NSAfari: U.S., UK advise avoiding Internet Explorer until bug fixed (Reuters)
China’s Income Inequality Surpasses U.S., Posing Risk for Xi (BBG)
US races to refuel infrastructure fund as revenue dries up (FT)
New Era Dawns at Nokia as Company Appoints CEO, Plans $1.4 Billion Special Dividend, Share-Repurchase Program (WSJ)
Obama reassures allies, but doubts over 'pivot' to Asia persist (Reuters)
Dissent at SEC over bank waivers (FT)
U.S. Banks to Help Authorities with Tax Evasion Probe (WSJ)
U.S., Europe Impose New Sanctions on Russia (WSJ)
Why the U.S. Is Targeting the Business Empire of a Putin Ally (BBG)
Euro-Area April Economic Confidence Unexpectedly Declines (BBG)
Bitcoin traders settle class actions over failed Mt. Gox exchange (Reuters)
China’s Provinces Fail to Meet Lower 2014 Growth Goals (BBG)
Overnight Media Digest
WSJ
* The U.S. and Europe imposed sanctions on a slate of new Russian government officials and business entities in an effort to pressure President Vladimir Putin and his Ukrainian allies to cease their military activity in eastern Ukraine. (http://r.reuters.com/dek88v)
* Nokia on Tuesday named mobile-network veteran Rajeev Suri as its next chief executive and said it would distribute an approximately 1 billion euro ($1.4 billion) special dividend and initiate a share-repurchase program in an effort to return to investment grade. The financial moves come as a result the sale of the company's handset unit to Microsoft Corp. (http://r.reuters.com/bek88v)
* Pfizer Inc's nearly $100 billion offer to buy British rival AstraZeneca Plc, if accepted, would allow the pharmaceutical giant to move its official headquarters overseas, saving the company that started 165 years ago on a Brooklyn, New York, street corner billions in taxes over the next decade. (http://r.reuters.com/hek88v)
* An apparent communications blunder inside Bank of America Corp forced the lender to shelve a plan to buy back shares and boost its dividend for the first time since 2008, another setback for Chief Executive Brian Moynihan's efforts to escape the long shadow of the financial crisis. (http://r.reuters.com/rek88v)
* Energy Future Holdings Corp, the Texas utility at the center of the biggest private-equity buyout ever, was preparing to file for Chapter 11 bankruptcy protection as soon as Tuesday morning, after reaching a restructuring deal with creditors. The utility, formerly TXU Corp, was racing to forge a restructuring deal and file for bankruptcy before a grace period on skipped debt payments expired later this week and put the company in default. (http://r.reuters.com/tek88v)
* The weather phenomenon known as El Niño is poised to return, a development that threatens to drive up prices for food and other staples. El Niño has a reputation for triggering sharp run-ups for prices in markets as diverse as nickel, coffee and soybeans, and commodities investors, traders and analysts are bracing for impact. (http://r.reuters.com/zek88v)
* Toyota Motor Corp will receive $40 million from Texas to consolidate several far-flung units in a new headquarters in the state as the company looks to cut costs and combine its North American sales, manufacturing and financial locations. (http://r.reuters.com/wek88v)
* Lawyers for creditors involved in two proposed class-action lawsuits against Mt. Gox have reached an agreement to support a group of U.S. investors' bid to revive the bankrupt bitcoin exchange, an agreement that would give the creditors a 16.5 percent stake in the prospective future company. (http://r.reuters.com/duk88v)
* Lawmakers pressing Securities and Exchange Commission Chairman Mary Jo White to address worries about rapid-fire trading aren't likely to hear detailed plans for immediate action when she testifies Tuesday on Capitol Hill. (http://r.reuters.com/huk88v)
FT
government in the hopes of winning it over to their rival bids for engineering group Alstom, each arguing that its offer best served the national interest.
Three U.S.-based former Barclays traders will be charged by Britain's Serious Fraud Office as part of its probe into the alleged manipulation of the Libor interbank rate.
The U.S. department of homeland security has told individuals and companies to avoid using Internet Explorer, after a flaw allowing cyber criminals to impersonate known websites and steal user data was found in the popular web browser.
U.S. Securities and Exchange Commission commissioner Kara Stein has accused the agency of having "strayed from its mission" by allowing two banks that pleaded guilty to interest-rate rigging to access capital markets without regulatory scrutiny.
Britain's Financial Conduct Authority has slapped fund manager Invesco Perpetual with a 18.6 million pound ($31.26 million) for breaching investment limits and introducing leverage into funds - including those run by Neil Woodford - without proper disclosure.
NYT
* The Federal Reserve is tiptoeing away from its economic stimulus campaign, and so far the broader economy has barely noticed. The Fed's policy-making committee, which meets on Tuesday and Wednesday, is widely expected to announce another $10 billion cut in its monthly bond purchases, to $45 billion, en route to ending the purchases this autumn. (http://r.reuters.com/vak88v)
* Pfizer Inc proposed on Monday a $99 billion acquisition of its British rival AstraZeneca Plc that would allow it to reincorporate in Britain. Doing so would allow Pfizer to escape the United States corporate tax rate and tap into a mountain of cash trapped overseas, saving it billions of dollars each year and making the company more competitive with other global drug makers. (http://r.reuters.com/wak88v)
* Covington & Burling LLP, the firm where Eric Holder practiced law before becoming attorney general, will announce on Tuesday that Mythili Raman is the latest former senior Justice Department official to join its ranks. Raman, who will be a partner in Covington's white-collar crime and litigation practices, led the Justice Department's criminal division until last month. (http://r.reuters.com/zak88v)
* Bank of America Corp disclosed on Monday that it had made a significant error in the way it calculates a crucial measure of its financial health, suffering another blow to its effort to shake its troubled history. The mistake, which had gone undetected for several years, led the bank to report recently that it had $4 billion more capital than it actually had. After Bank of America reported its error to the Federal Reserve, the regulator required the bank to suspend a share buyback and a planned increase in its quarterly dividend. (http://r.reuters.com/fek88v)
* A new government report suggests that errors made by banks and their agents during foreclosures might have been significantly higher than was previously believed when regulators halted a national review of the banks' mortgage servicing operations. (http://r.reuters.com/jek88v)
* Yahoo Inc Chief Executive Marissa Mayer announced on Monday evening that Yahoo is commissioning two original TV-length comedy series that will be shown exclusively on its websites and mobile apps. (http://r.reuters.com/xek88v)
* Toyota Motor Corp said on Monday that it would move thousands of employees from California and other locations to new North American headquarters in Texas as part of a broad effort to cut costs and streamline operations. (http://r.reuters.com/buk88v)
* As part of a routine effort to identify acquisition targets, the Walt Disney Co last year zeroed in on BuzzFeed, the fast-growing digital media company, but Disney's interest quickly dissipated when BuzzFeed valued itself at nearly $1 billion, according to a person with direct knowledge of the talks. (http://r.reuters.com/fuk88v)
* The Obama administration has begun a wide-ranging search for companies to run the online federal health insurance exchange, seeking new talent to prevent a repeat of problems that immobilized the website last fall. (http://r.reuters.com/nuk88v)
Canada
THE GLOBE AND MAIL
* The Harper government has hired two agencies with relatively little experience in elections monitoring to organize hundreds of Canadian observers for next month's Ukrainian presidential vote. The government has hired the Forum of Federations and CUSO International to replace its longtime Ukraine election partner, the non-governmental organization Canadem. (link.reuters.com/jan88v)
* Ottawa is relenting to external pressure and now promising to speed up the release of a "public report" on the fighter jets pegged to replace Canada's fleet of CF-18s. The document, which has been put together for widespread release, lists the risks and benefits of the four fighter jets that were involved in an "options analysis" overseen by the Canadian Forces. (link.reuters.com/guq42v)
Reports in the business section:
* A spat between Barrick Gold Corp and Newmont Mining Corp erupted into a public war of words, with the companies accusing each other of ruining their $13-billion (U.S.) merger. Barrick said its American rival reneged on their deal and tried to change key provisions, including the location of the head office in Toronto. Newmont disagreed with Barrick's version and faulted the Canadian company's incoming chairman John Thornton for not being constructive. (link.reuters.com/xym88v)
* Canadian Imperial Bank of Commerce's coming leadership shuffle spotlights the need for boards of directors to devote more resources to the crucial task of succession planning, governance experts say. (link.reuters.com/zym88v)
NATIONAL POST
* After some tough years of spending restraints, Canada's economy is soon expected to return to normal levels of growth and possibly get back to budget surpluses ahead of schedule. (link.reuters.com/gan88v)
FINANCIAL POST
* Quebecor Inc announced the second surprise change of its leader in little more than a year Monday, leaving the distinct impression of an organization in flux. The Montreal-based telecom and media company cited health reasons for Robert Dépatie's resignation as president and chief executive less than a year after he took over from Pierre Karl Péladeau. (link.reuters.com/guq42v)
* Premier Kathleen Wynne is promising to create a $2.5-billion fund aimed at keeping businesses in Ontario. Details are scant, but officials say companies would be able to apply for government grants. (link.reuters.com/guq42v)
China
CHINA SECURITIES JOURNAL
- The pace of China Securities Regulatory Commission (CSRC) in resuming IPO applications will not overly speed up despite the commission's recent spate of "pre-disclosure" of companies waiting to be listed, with sources expecting four to five companies to be granted per week in the near term. As of April 28, up to 144 companies have submitted the draft version of prospectuses, the CSRC information disclosure shows.
- Members of the China Iron and Steel Association (CISA) have lost 2.329 billion yuan ($372.5 million) in the first quarter of 2014, with 45.45 percent of the association members losing money because of low demand, high inventory stock and declining price.
SECURITIES TIMES
- A total of 2453 A-share listed companies have released their 2013 annual reports so far, with the sum of their net profit reaching 2,240 billion yuan, a 15 percent rise year-on-year.
- In spite of high rates, the number of China's new issuance of quasi-municipal bonds in 2014 has reached 215 so far this year, raising 248.31 billion yuan, a 36.28 percent increase from the same time of last year.
CHINA DAILY
- Chinese stocks saw a sharp drop on Monday after the securities regulator said it will resume reviewing IPO applications following an 18-month moratorium. The Shanghai Composite Index lost 1.6 percent before closing at 2003.49, the Shenzhen Component Index dropped 1.14 percent to 7240.46.
SHANGHAI DAILY
- China's president Xi Jinping visited armed policeman, local residents' homes and a primary school after arriving in the restive Xinjiang autonomous region on Sunday, encouraging local officials to promote harmony among all ethnic groups.
PEOPLE'S DAILY
- Higher quality as well as wider coverage of road constructing in China's rural areas must be achieved to fulfil the goal of modern agriculture, an editorial said, commenting on president Xi Jinping's series of conduct highlighting the significance in rural transportation infrastructure.
Britain
The Telegraph
BANKS TO BE TESTED ON PROPERTY MARKET CRASH
The Bank of England is to test Britain's major banks on their ability to weather a housing market crash that could wipe more than a third off home prices. (http://link.reuters.com/zaj88v)
CITY WATCHDOG SAYS WON'T WASTE RESOURCES ON ROYAL MAIL PROBE
Martin Wheatley, the boss of the Financial Conduct Authority, has told Members of Parliament he saw no reason to investigate the flotation of Royal Mail or the bankers involved pouring water on claims that the historic privatisation was mismanaged. (http://link.reuters.com/gah88v)
SERCO SET TO LAUNCH RESCUE RIGHTS ISSUE
Serco's shares are expected to fall heavily on Tuesday after the embattled outsourcing firm warned that it is looking at launching a rescue rights issue to bolster its finances. (http://link.reuters.com/xaj88v)
ASSET SELL-DOWN LOOMS AS BG OUSTS CHIEF EXECUTIVE
A sell-down of BG Group's assets or even a break-up bid have moved a step closer after the ousting of Chief Executive Chris Finlayson just 16 months into the job. (http://link.reuters.com/jeh88v)
BP 'COMMITTED TO ROSNEFT' AS RUSSIAN ENERGY GIANT'S CHIEF IGOR SECHIN IS PLACED ON U.S. SANCTIONS LIST
BP has said it remains "committed" to Rosneft , after the U.S. placed sanctions on Igor Sechin, the president of the Russian energy giant, in which BP has a 20 percent stake. (http://link.reuters.com/cej88v)
FITNESS FIRST FLEXES ITS MUSCLES IN SOUTHEAST ASIA
Recovering gym chain Fitness First is investing $140 million to get Southeast Asia into shape and is eyeing a further 50 clubs in the region. (http://link.reuters.com/tah88v)
The Guardian
BRITAIN FILES FIRST CRIMINAL CHARGES AGAINST U.S.-BASED LIBOR TRADERS
Britain filed its first criminal charges against U.S.-based Libor traders on Monday, as the UK arm of a complex global investigation into alleged benchmark interest-rate rigging stretches across the Atlantic. (http://link.reuters.com/dej88v)
PFIZER ASTRAZENECA TAKEOVER PROMPTS JOB WARNING FROM VINCE CABLE
Battle lines are being drawn over what would be the biggest foreign takeover of a British company after pharmaceutical company AstraZeneca rejected a 60 billion pound ($100.85 billion) approach from U.S. rival Pfizer, prompting a warning on jobs from UK Business Secretary Vince Cable but receiving a warmer welcome from investors. (http://link.reuters.com/feh88v)
RBS PUT AT 'COMPETITIVE DISADVANTAGE' BY BONUS BLOCKING PLANS
Standard Life, one of London's biggest fund managers, has warned that the British government's decision to block Royal Bank of Scotland's bonus plans would put the bank at a competitive disadvantage. (http://link.reuters.com/heh88v)
HEATHROW CHIEF WARNS STRONG PROFITS WILL NOT BE SUSTAINED IN YEAR AHEAD
Heathrow recorded strong profits and record passenger satisfaction scores over a mild winter but warned it will feel the squeeze in the year ahead. (http://link.reuters.com/fej88v)
The Times
BASKIN-ROBBINS SCOOPS UP CINEWORLD DEAL
Dunkin' Brands, the group that owns Baskin-Robbins ice cream shops, has scored a victory over one of its biggest rivals after securing a franchise deal to replace Ben & Jerry's at 45 Cineworld cinemas across Britain. (http://link.reuters.com/kyg88v)
The Independent
UK ADVERTISING MARKET BUOYED BY MOBILE BOOM
A boom in smartphone and mobile advertising has spurred growth in the UK advertising market as industry forecasters reckon ad revenues should soar 5.5 percent this year and 6.5 percent next year to reach a record 20 billion pounds. (http://link.reuters.com/gej88v)
Fly On The Wall 7:00 AM Market Snapshot
ECONOMIC REPORTS
Domestic economic reports scheduled today include:
S&P Case-Shiller 20-city home price index for February at 9:00--consensus up 0.8% m/m, up 13.0% y/y
Consumer confidence index for April at 10:00--consensus 83.2
ANALYST RESEARCH
Upgrades
Barrick Gold (ABX) upgraded to Neutral from Underweight at HSBC
Boardwalk Pipeline (BWP) upgraded to Equal Weight from Underweight at Morgan Stanley
Boardwalk Pipeline (BWP) upgraded to Market Perform at Raymond James
Boardwalk Pipeline (BWP) upgraded to Outperform from Neutral at Credit Suisse
Chegg (CHGG) upgraded to Buy from Neutral at BofA/Merrill
Choice Hotels (CHH) upgraded to Equalweight from Underweight at Barclays
Clarcor (CLC) upgraded to Buy from Hold at BB&T
DSW (DSW) upgraded to Buy from Neutral at Sterne Agee
El Paso Electric (EE) upgraded to Buy from Hold at Jefferies
GP Strategies (GPX) upgraded to Neutral from Sell at B. Riley
HP (HPQ) upgraded to Outperform from Sector Perform at Pacific Crest
Ingram Micro (IM) upgraded to Strong Buy from Outperform at Raymond James
Intuitive Surgical (ISRG) upgraded to Neutral from Underperform at Sterne Agee
Lakeland Bancorp (LBAI) upgraded to Outperform from Market Perform at Keefe Bruyette
Tech Data (TECD) upgraded to Outperform from Market Perform at Raymond James
WSFS Financial (WSFS) upgraded to Outperform from Market Perform at Keefe Bruyette
Downgrades
ABB (ABB) downgraded to Hold from Buy at Societe Generale
Airgas (ARG) downgraded to Neutral from Overweight at Atlantic Equities
Coca-Cola Enterprises (CCE) downgraded to Reduce from Neutral at Nomura
OncoGenex (OGXI) downgraded to Sector Perform from Outperform at RBC Capital
Stage Stores (SSI) downgraded to Neutral from Buy at Northcoast
Tyson Foods (TSN) downgraded to Market Perform from Outperform at BMO Capital
Initiations
AudioCodes (AUDC) initiated with an Outperform at William Blair
Coca-Cola (KO) initiated with a Buy at Nomura
Five9 (FIVN) initiated with a Buy at BofA/Merrill
Five9 (FIVN) initiated with an Outperform at Pacific Crest
Five9 (FIVN) initiated with an Overweight at Barclays
Five9 (FIVN) initiated with an Overweight at JPMorgan
Gentex (GNTX) initiated with a Sector Perform at Pacific Crest
GrubHub (GRUB) initiated with a Buy at Citigroup
GrubHub (GRUB) initiated with an Equal Weight at Morgan Stanley
GrubHub (GRUB) initiated with an Outperform at BMO Capital
Harman (HAR) initiated with an Outperform at Pacific Crest
Opower (OPWR) initiated with a Buy at Goldman
Opower (OPWR) initiated with a Neutral at RW Baird
Opower (OPWR) initiated with an Equal Weight at Morgan Stanley
Opower (OPWR) initiated with an Outperform at Pacific Crest
Royal Caribbean (RCL) initiated with a Buy at Berenberg
Sonus Networks (SONS) initiated with an Outperform at William Blair
TPG Specialty Lending (TSLX) initiated with a Market Perform at JMP Securities
Vince Holding (VNCE) initiated with an Overweight at Piper Jaffray
COMPANY NEWS
Nokia (NOK) appointed Rajeev Suri as CEO, effective May 1
Herbalife (HLF) announced that it would suspend its quarterly dividend and use its cash instead to repurchase stock, and said it plans to repurchase $581M worth of stock in Q2
Yahoo (YHOO) announced first two original comedies in lineup of long-form shows
Yahoo (YHOO), Live Nation (LYV) announced a deal to stream live concerts
Honeywell (HON) announced an agreement in principle with AT&T (T) for AT&T's planned in-flight connectivity services
Novavax (NVAX) reported positive results from a Phase 2 trial of its RSV-F protein nanoparticle vaccine candidate
Heartland Advisors said it plans to enter discussions with Lincoln Educational's (LINC) management regarding potential corporate governance and budget changes
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Spirit Airlines (SAVE), Magellan Health (MGLN), Littelfuse (LFUS), Wolverine World Wide (WWW), World Acceptance (WRLD), Norwegian Cruise Line (NCLH), Pioneer Energy (PES), Huntsman (HUN), United Therapeutics (UTHR), HomeStreet (HMST), BP (BP), Ensco (ESV), Arlington Asset Investment (AI), Ballard Power (BLDP), Hartford Financial (HIG), Wabash (WNC), Cleco (CNL), PartnerRe (PRE), Herbalife (HLF), Kaman (KAMN), Berkshire Hills Bancorp (BHLB), Advent Software (ADVS), Hartford Financial (HIG), Ducommun (DCO), Compass Minerals (CMP), Ameriprise (AMP), NetSuite (N), Intevac (IVAC), CoreLogic (CLGX), OFG Bancorp (OFG), Luminex (LMNX), Amkor Technology (AMKR), Buffalo Wild Wings (BWLD), STAAR Surgical (STAA), Plum Creek Timber (PCL), Knowles (KN), Ruth's Hospitality (RUTH)
Companies that missed consensus earnings expectations include:
CIT Group (CIT), Portland General Electric (POR), Stock Building Supply (STCK), Chart Industries (GTLS), Provident Financial (PROV), Headwaters (HW), Volaris (VLRS), PRGX Global (PRGX), Bridge Bancorp (BDGE), RockTenn (RKT), Silicon Motion (SIMO), Seaspan (SSW), Owens & Minor (OMI), Range Resources (RRC), Ultra Clean (UCTT), Container Store (TCS), Rudolph Technologies (RTEC), Meru Networks (MERU), Heartland Financial (HTLF), Questcor (QCOR), MainSource Financial (MSFG), Helen of Troy (HELE), J & J Snack Foods (JJSF)
Companies that matched consensus earnings expectations include:
1-800-Flowers.com (FLWS), Check Point (CHKP), Del Frisco's (DFRG), Sensata (ST), Silicon Laboratories (SLAB), German American Bancorp (GABC), STMicroelectronics (STM), NBT Bancorp (NBTB), Flotek (FTK), Denny's (DENN)
NEWSPAPERS/WEBSITES
Disney (DIS) sought to acquire BuzzFeed, Fortune says
Reckitt Benckiser confirms discussions to buy Merck (MRK) unit, WSJ says
Siemens' (SI) Alstom bid likely to occur today (GE), Reuters reports
HP (HPQ) to launch Android-dedicated laptop (GOOG), BGR says
Netflix (NFLX) signs traffic deal with Verizon (VZ), The Verge reports
Sanofi (SNY) CEO says focusing on smaller, 'bolt-on' deals, WSJ reports
Craig Ferguson to leave CBS' (CBS) "Late Late Show," Variety reports
SYNDICATE
Burlington Stores (BURL) files to sell 12M common shares for holders
El Paso Pipeline (EPB) files to sell 6.8M shares for limited partners
Forum Energy (FET) files to sell 10M shares for holders
Media General (MEG) files to sell 9M shares for holders
RAIT Financial (RAS) files 10.1M shares for holders of warrants
TOP Ships (TOPS) files to sell $30M in stock and preferred stock purchase rights
Universal Truckload (UACL) files to sell 1.9M shares, including 1.88M for holders
Average:
Pre Market Movers
Top Gaining Stocks
Price %Change
FOLD Amicus Therapeuti... 2.70 46.74%
CYTR Cytrx Corporation... 3.87 28.57%
SYX Systemax Inc. 22.00 23.32%
NVAX Novavax Inc. 4.44 12.69%
BSBR Banco Santander B... 6.50 12.46%
OXGN Oxigene Inc. 3.30 10.74%
CETV Central European ... 2.72 7.51%
CHU China Unicom (hon... 14.53 6.76%
AIXG Aixtron SE 17.04 6.63%
NOK Nokia Corp. Ads 7.47 6.26%
BWLD Buffalo Wild Wing... 141.00 5.71%
ORB Orbital Sciences ... 27.90 5.01%
CYTK Cytokinetics Inco... 4.68 4.93%
STO Statoil Asa Ads 30.12 4.55%
ORAN Orange 15.64 4.55%
YINN Direxion Daily Ch... 21.80 4.51%
CBST Cubist Pharmaceut... 65.00 4.32%
BWP Boardwalk Pipelin... 16.80 3.77%
HW Headwaters Inc. 11.86 3.67%
KLIC Kulicke and Soffa... 13.09 3.64%
Top Losing Stocks
Price %Change
GOGO Gogo Inc. 15.39 -16.26%
UCTT Ultra Clean Holdi... 10.20 -13.63%
TCS The Container Sto... 27.11 -9.24%
NRF Northstar Realty ... 15.95 -7.27%
RTEC Rudolph Tech Inc ... 10.19 -6.86%
ABB Abb Ltd. Ads 24.50 -6.70%
CFP Cornerstone Progr... 5.00 -4.98%
COH Coach Inc. 48.20 -4.40%
ADM Archer-daniels-mi... 42.56 -4.10%
DOG Proshares Short D... 24.96 -3.87%
LULU lululemon athleti... 43.60 -3.60%
JNUG Direxion Daily Jr... 18.50 -3.50%
MGLN Magellan Health S... 53.49 -3.38%
NUGT Direxion Daily Go... 34.78 -3.28%
GFI Gold Fields Ltd. ... 4.12 -2.83%
HMY Harmony Gold Mini... 3.22 -2.72%
VDC Vanguard Consumer... 110.67 -2.71%
AU Anglogold Ashanti... 17.88 -2.56%
TSL Trina Solar Ltd. ... 10.95 -2.41%
YANG Direxion Daily Ch... 24.98 -2.38%
Read more at http://thestockmarketwatch.com/markets/pre-market/#s0T8X4EliX8TlAPY.99
data:
FOMC Meeting Begins
ICSC-Goldman Store Sales
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Redbook
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S&P Case-Shiller HPI
[Report][djStar]9:00 AM ET
Consumer Confidence
[Report][djStar]10:00 AM ET
State Street Investor Confidence Index
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4-Week Bill Auction
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Futures +38
good morning
frontrunning:
U.S. Plans to Hit Putin Inner Circle With New Sanctions (BBG)
Russian Billions Scattered Abroad Show Trail to Putin Circle (BBG)
GE’s Alstom Bid Gains Steam as Hollande Said Not Opposed (BBG)
Russia-West tensions pressure stocks, buoy oil prices (Reuters)
Toyota Said to Plan to Move U.S. Sales Office to Texas (BBG)
Egyptian court seeks death sentence for Brotherhood leader, 682 supporters (Reuters)
Greece warned of 14.9 billion euro financing gap (FT)
Comcast to shed 3.9 million subscribers to ease cable deal (Reuters)
Big U.S. Banks Make Swaps a Foreign Affair (WSJ)
Doctors Get Millions From Medicare After Losing Their Licenses (BBG)
Europe Lacks Founding Father as Russia Sows Divisions (BBG)
Overnight Media Digest
WSJ
* Pfizer Inc plans to pursue a bid for AstraZeneca Plc, eyeing a tie-up that would create a roughly $300 billion pharmaceutical giant and fuel an already booming year for merger-and-acquisition activity, particularly in health care. (http://r.reuters.com/qez78v)
* Siemens AG barged in on Alstom's plans to sell its energy assets to General Electric Co, proposing a counter offer that would forge a global behemoth while keeping a symbol of French industry rooted in Europe. (http://r.reuters.com/rez78v)
* Alibaba Group Holding Ltd's <IPO-ALIB.N> Taobao is one of the world's largest shopping sites, with 7 million sellers offering 800 million items. But ahead of Alibaba's high-profile IPO in the United States, critics say it needs to address the problem of rampant counterfeit goods. (http://r.reuters.com/sez78v)
* Hedge-fund company Och-Ziff Capital Management Group helped finance controversial African oil and mining deals, a trail of corporate documents shows, and now faces scrutiny from U.S. authorities. Och-Ziff disclosed in a March filing that the Securities and Exchange Commission and Justice Department are investigating investments by some of its funds "in a number of companies in Africa" under the Foreign Corrupt Practices Act and related laws. (http://r.reuters.com/wez78v)
* As regulators tighten rules on the U.S. swaps market, large American banks are maneuvering to take some of the business overseas. Banks including Bank of America Corp, Citigroup Inc, Goldman Sachs Group Inc, JPMorgan Chase and Morgan Stanley are changing the terms of some swap agreements made by their offshore units so they don't get caught by U.S. regulations, according to people with knowledge of the situation. (http://r.reuters.com/zez78v)
* In Ben van Beurden's first four months as chief executive of Royal Dutch Shell Plc, the oil company has issued its first profit warning in a decade, halted major projects in Louisiana and Alaska, and moved to sell unprofitable U.S. shale properties. Shell reports earnings on Wednesday, and investors expect to gain clarity on how the 31-year Shell veteran plans to boost profit when costs are high and oil and gas are harder than ever to find. (http://r.reuters.com/cuz78v)
* As states stretching from Massachusetts to Maine thaw out from bitter cold, questions linger about why New England hasn't benefited from the energy boom in the nearby Marcellus Shale. The short answer is not enough pipelines. And the reason is an impasse between pipeline operators and power plants over how to pay for new capacity. (http://r.reuters.com/zyz78v)
* A newly discovered security hole in Microsoft Corp's Internet Explorer - the default Web browser for many users - could be particularly troubling for those still running Windows XP. Microsoft on Sunday warned about a flaw affecting versions 6 through 11 of its flagship browser. The coding flaw would allow hackers to have the same level of access on a network computer as the official user, Microsoft said, which is a best-case scenario for intruders. (http://r.reuters.com/fuz78v)
* A federal judge is slated to review this week how ready the city of Detroit is to hold a vote for more than 100,000 creditors considering a debt-cutting plan in the nation's largest municipal bankruptcy. A U.S. Bankruptcy Judge is scheduled to hold a hearing Monday to consider final approval of the plan's disclosure statement, a detailed explanation of Detroit's troubled financial past leading to an estimated $18 billion in long-term obligations. (http://r.reuters.com/huz78v)
FT
U.S. pharmaceutical giant Pfizer Inc could make a public declaration of its interest in Britain's second-biggest drugmaker AstraZeneca Plc as early as this week, according to sources.
French President Francois Hollande gathered ministers on Sunday to discuss General Electric's bid for French rival Alstom's energy business, with a separate proposal from Germany's Siemens on the table.
Prosecutors from the U.S. Department of Justice have gone to London to interview individuals as part of their probe into traders' alleged rigging of foreign exchange rates, three sources said.
Premier Oil has spurned a secret approach from Ophir Energy aimed at creating an enlarged oil exploration and production company with a market capitalisation of over 3 billion pounds.
Kazakhstan's $50 billion Kashagan oil project is likely to be delayed by two more years while 200 kilometers of pipeline is replaced, according to the country's minister for economy and budget planning.
NYT
* Charter Communications Inc is set to announce a roughly $22 billion deal with Comcast Corp on Monday that would bolster its subscriber base, people briefed on the matter said on Sunday. The three-part plan, which is scheduled to be announced along with Charter's first-quarter earnings, would allow the cable company to expand from its current largely regional presence to become the country's second-largest cable operator. (http://r.reuters.com/wuz78v)
* Pfizer Inc is close to publicly unveiling its interest in acquiring AstraZeneca Plc of Britain, a person briefed on the matter said on Sunday, in what would be one of the biggest in an already swelling series of deal efforts among drug makers. (http://r.reuters.com/xuz78v)
* A Wall Street executive who helped Goldman Sachs Group Inc make more than a billion dollars betting against mortgages now wants to buy up troubled home loans. Donald Mullen, who was the architect of Goldman's trade against the housing market just before the financial crisis, is seeking to raise as much as $1 billion for a new fund. (http://r.reuters.com/zuz78v)
* The French government on Sunday sought to put the brakes on General Electric's bid for Alstom SA, one of the largest industrial companies in France, warning that national interest was in play and that the state would have a say in the outcome. (http://r.reuters.com/cyz78v)
* The deep recession wiped out primarily high-wage and middle-wage jobs. Yet the strongest employment growth during the sluggish recovery has been in low-wage work, at places like strip malls and fast-food restaurants. In essence, the poor economy has replaced good jobs with bad ones. That is the conclusion of a new report from the National Employment Law Project, a research and advocacy group, analyzing employment trends four years into the recovery. (http://r.reuters.com/myz78v)
Canada
THE GLOBE AND MAIL
* Restaurants in Canada are bracing for significant new limits on their ability to hire temporary foreign workers, but are hoping to avoid a permanent ban. Employment Minister Jason Kenney promised Sunday that the federal government would unveil more changes to the controversial program within weeks. (http://r.reuters.com/xuc88v)
* About half of Ontario's school principals have asked parents to keep their child at home because they could not accommodate their special education needs, says a new report that sheds light on how budget constraints have affected students with learning disabilities. (http://r.reuters.com/fyc88v)
Reports in the business section:
* Bombardier Inc seems to have settled into a smoother flight path these days. There have been no additional disclosures of major setbacks on the high-stakes C Series new-jet program. The Learjet 85 finally had its first flight recently after a number of development stalls and glitches. (http://r.reuters.com/myc88v)
NATIONAL POST
* Canadians at risk of joining foreign terrorist groups in Syria and elsewhere are now being tracked under a program led by the Royal Canadian Mounted Police, a senior counter-terrorism officer has revealed in an interview. (http://r.reuters.com/xyc88v)
* The Canadian government is poised to introduce legislation in the coming weeks that will overhaul the country's prostitution laws - possibly targeting the pimps and johns as criminals while leaving the prostitutes themselves free from criminal prosecution. (http://r.reuters.com/bad88v)
FINANCIAL POST
* Winter storms flattened much of the economic data in North America and may have clouded the early outlook for growth this year. But a clearer picture could be developing - one that reveals a stronger underlying performance in Canada and the United States. (http://r.reuters.com/fad88v)
Hong Kong
SOUTH CHINA MORNING POST
-- A former mayor in Shanxi, Yan Guoping, who was sacked for failing to curtail illegal mining operations in his city, has turned out to be a key figure in helping China Resources to make inroads in the coal-rich province. (link.reuters.com/wyx78v)
-- More than 40 retired senior government officials serving as independent directors at China's top listed firms find themselves under the spotlight after a mainland flagship newspaper questioned whether they had carried out their responsibilities to protect small investors. (link.reuters.com/baz78v)
-- Brokers believe Hong Kong Exchanges and Clearing will face an uphill battle to promote its four commodity products to be introduced later this year mainly because investors are used to trading these products overseas. (link.reuters.com/daz78v)
THE STANDARD
-- The MTR has come under fire for not telling passengers quickly enough about a 35-minute suspension of East Rail services in Hong Kong on Sunday, with lawmakers calling on the government to fine the corporation heavily. (link.reuters.com/jaz78v)
-- Locals have given Hong Kong an early glimpse of the proposed May Day stink planned by mainlanders by mock pooing in the streets and at Harbour City in Hong Kong's Tsim Sha Tsui. (link.reuters.com/naz78v)
-- Most social workers are opposed to the screening of candidates in the 2017 chief executive election, a survey shows. The Hong Kong Social Workers' General Union surveyed about 500 members between April 3-19. (link.reuters.com/raz78v)
HONG KONG ECONOMIC JOURNAL
-- Hong Kong's Mandatory Provident Fund has registered a 0.65 percent return in April, against a 0.67 percent fall in March. It slid 0.36 percent for the first four months of 2014, according to data from financial research group Morningstar.
HONG KONG ECONOMIC TIMES
-- Fashion retailer La Chapelle, which trying to position itself as China's Zara, is set to raise $300 million in an initial public offering in May, according to market sources.
MING PAO DAILY NEWS
-- Property prices in Hong Kong's primary market have fallen by 20-30 percent from their peak, according to government sources. Developers are set to continue selling flats at low prices as potential buyers expect a further slide in prices, industry observers said.
Britain
The Telegraph
BSKYB PLANS MAJOR OVERHAUL OF SET-TOP BOX TO MEET APPLE THREAT
BSkyB is preparing a major overhaul of its set-top box technology to address the threat to its subscription business from internet-based television services from American giants such as Amazon, Apple and Google . (http://link.reuters.com/syx78v)
MORRISONS 'HEADING FOR AN ICEBERG', SAYS FORMER DIRECTOR
A former director at Wm Morrisons who served under Ken Morrison has warned the grocery retailer is a "supertanker heading towards an iceberg" and called for management to step aside. (http://link.reuters.com/jyx78v)
ENERGY COMPANIES 'TO REAP 2 BLN STG WINDFALL' FROM GREEN LEVIES DEAL
Britain's biggest energy suppliers could pocket a 2 billion pound ($3.36 billion) windfall over the next three years after the government miscalculated a deal to cut green levies, new research claims. (http://link.reuters.com/mux78v)
The Guardian
GE FACES RIVAL BID FOR ALSTOM FROM SIEMENS
Siemens entered the battle for French engineering group Alstom on Sunday, after the French government encouraged a European counterbid following a $13 billion offer last week by the U.S. company General Electric. (http://link.reuters.com/tyx78v)
CBI SCOTLAND CHIEF ANNOUNCES RETIREMENT AMID INDEPENDENCE ROW
The director of CBI Scotland, Iain McMillan, has announced he is retiring after the independence referendum in the wake of the organisation's disastrous registration as a no campaigner. (http://link.reuters.com/vyx78v)
The Times
RBS MAKES ALLOWANCES ON ROSS MCEWAN'S PAY
Royal Bank of Scotland has guaranteed that the minimum pay of its new boss will be 50 percent higher than that of his predecessor, Stephen Hester, who left the taxpayer-backed bank last year after a series of bruising rows over his bonus arrangements. (http://link.reuters.com/kyx78v)
ROYAL MAIL IS UNDER MPS' MICROSCOPE
The cream of the City of London is to be hauled across town this week to the Palace of Westminster in an unprecedented three days of parliamentary inquiry into last autumn's privatisation of the Royal Mail Plc. (http://link.reuters.com/kux78v)
CLEARACCOUNT FACES INQUIRY FOR SEEKING PINS AND PASSWORDS
Britain's privacy watchdog is to investigate a short-term credit provider that requires potential customers to hand over their PIN and online banking passwords, after an investigation by The Times. (http://link.reuters.com/myx78v)
Fly On The Wall 7:00 AM Market Snapshot
ANALYST RESEARCH
Upgrades
AstraZeneca (AZN) upgraded to Hold from Sell at Societe Generale
Autodesk (ADSK) upgraded to Outperform from Sector Perform at Pacific Crest
Deckers Outdoor (DECK) upgraded to Neutral from Underperform at Credit Suisse
Empresas ICA (ICA) upgraded to Buy from Neutral at BofA/Merrill
Hornbeck Offshore (HOS) upgraded to Buy from Hold at Wunderlich
LCNB Corp. (LCNB) upgraded to Outperform from Market Perform at FBR Capital
Macatawa Bank (MCBC) upgraded to Market Perform from Underperform at Keefe Bruyette
Masco (MAS) upgraded to Buy from Neutral at Citigroup
Meritage Homes (MTH) upgraded to Neutral from Sell at UBS
Newmont Mining (NEM) upgraded to Sector Performer from Underperformer at CIBC
TD Ameritrade (AMTD) upgraded to Outperform from Market Perform at Bernstein
Downgrades
Air Products (APD) downgraded to Underweight from Neutral at Atlantic Equities
BCE (BCE) downgraded to Sector Perform from Outperform at RBC Capital
CenturyLink (CTL) downgraded to Market Perform from Outperform at BMO Capital
Clean Harbors (CLH) downgraded to Outperform from Strong Buy at Raymond James
Diageo (DEO) downgraded to Neutral from Outperform at Credit Suisse
FLIR Systems (FLIR) downgraded to Fair Value from Buy at CRT Capital
Knightsbridge Tankers (VLCCF) downgraded to Equal Weight at Morgan Stanley
Mattress Firm (MFRM) downgraded to Hold from Buy at KeyBanc
Panera Bread (PNRA) downgraded to Underperform from Neutral at Longbow
Sociedad Quimica (SQM) downgraded to Underweight from Neutral at HSBC
USG (USG) downgraded to Equalweight from Overweight at Barclays
Wesco Aircraft (WAIR) downgraded to Neutral from Overweight at JPMorgan
Initiations
Corium (CORI) initiated with a Buy at Jefferies
Corium (CORI) initiated with an Outperform at Leerink
Rubicon Project (RUBI) initiated with a Neutral at Goldman
Rubicon Project (RUBI) initiated with an Overweight at Morgan Stanley
Tarena (TEDU) initiated with a Buy at Goldman
Tarena (TEDU) initiated with an Outperform at Oppenheimer
United Insurance (UIHC) initiated with an Outperform at Wells Fargo
COMPANY NEWS
Pfizer (PFE) confirmed a $76.62 per share offer for AstraZeneca (AZN)
AstraZeneca (AZN) said Pfizer's (PFE) offer 'significantly udnervalued' prospects
Comcast (CMCSA) said it will divest 3.9M video customers to Charter (CHTR) following the completion of the merger with Time Warner Cable (TWC)
Meda rejected Mylan's (MYL) revised proposal, said lacks shareholder support
HealthSouth (HLS) received additional subpoenas for seven hospitals from an office of the U.S. Department of Health and Human Services, Office of the Inspector General
Hartford Financial (HIG) said it would sell its Japanese annuity subsidiary for $895M to ORIX Life Insurance Corporation
BG Group (BRGYY) CEO Chris Finlayson resigned for 'personal reasons'
Youku Tudou (YOKU) announced a $1.22B investment led by Alibaba Group
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
TGC Industries (TGE), Carter's (CRI), Boardwalk Pipeline (BWP), New Oriental Education (EDU)
Companies that missed consensus earnings expectations include:
Haemonetics (HAE), Loews (L), Charter (CHTR), Sohu.com (SOHU), Changyou.com (CYOU)
NEWSPAPERS/WEBSITES
Siemens (SI) looks to compete with GE on Alstom offer, Bloomberg says
Starbucks's (SBUX) coffee purchases have slowed as coffee bean prices soar, WSJ says
Omnicom (OMC), Publicis (PUBGY) working out differences to complete deal, Reuters reports
Mining executive said to make offer for BHP (BHP) coal unit, Sunday Times reports
Merck (MRK) nears deal to sell consumer healthcare unit, Reuters says
Citigroup (C) and DOJ plan to begin mortgage settlement talks, WSJ says
Bayer (BAYRY) exploring sale of $10B plastics unit, Bloomberg reports
Whirlpool (WHR) 'worth another spin' despite mixed results, Barron's says
Pfizer (PFE) could rise 25%, Barron's says
LinkedIn (LNKD) shares look overvalued, Barron's reports
Zoetis (ZTS) 'worth a look,' Barron's reports
Apple (AAPL) shares could continue to climb, Barron's says
Sarepta (SRPT) still has more upside, Barron's says
Saneamento Basico (SBS) could be at risk of violating debt agreements, Barron's reports
SYNDICATE
GasLog Partners files 8.4M common unit IPO at $19-$21 each
Average:
data:
Pending Home Sales Index
[Report][djStar]10:00 AM ET
Dallas Fed Mfg Survey
[Report][djStar]10:30 AM ET
4-Week Bill Announcement
[Bullet11:00 AM ET
3-Month Bill Auction
[Bullet11:30 AM ET
6-Month Bill Auction
[Bullet11:30 AM ET
Pre Market Movers
Top Gaining Stocks
Price %Change
FURX Furiex Pharmaceut... 105.00 31.00%
AZN Astrazeneca Plc A... 80.20 16.81%
GWPH GW Pharmaceutical... 71.14 14.52%
SUSS Susser Holdings C... 65.00 13.98%
YOKU Youku Tudou 26.80 11.02%
TGE Tgc Industries In... 5.97 10.15%
VHC Virnetx Holding 17.00 6.12%
SUSP Susser Petroleum ... 38.69 4.94%
SONC Sonic Corp. 21.00 4.79%
FUEL Smf Energy Corp 32.50 4.70%
GBR New Concept Energ... 2.49 3.75%
TEDU Tarena Internatio... 9.21 3.37%
AEGR Aegerion Pharmace... 45.92 3.26%
HERO Hercules Offshore... 4.65 3.10%
SGMS Scientific Games ... 11.99 2.65%
CYTR Cytrx Corporation... 3.10 2.65%
OXGN Oxigene Inc. 3.13 2.62%
NMBL Nimble Storage In... 29.10 2.43%
BLDP Ballard Power Sys... 4.27 2.40%
GLW Corning Inc. 21.20 2.22%
Top Losing Stocks
Price %Change
OGXI Oncogenex Pharmac... 4.50 -53.61%
POZN Pozen Inc. 6.98 -23.55%
MYL Mylan Inc. 47.44 -8.94%
SOHU Sohu.com Inc. 55.00 -5.17%
NEM Newmont Mining Co... 25.27 -4.46%
NBG National Bank of ... 3.91 -2.98%
TKR Timken Co. 59.60 -2.95%
CYOU Changyou.com Limi... 26.00 -2.44%
DV Devry Inc. 44.92 -2.33%
CNHI Cnh Industrial N.... 11.51 -2.21%
BBY Best Buy Co. Inc.... 23.89 -2.01%
RIO Rio Tinto Plc Ads... 54.04 -1.85%
NVDA Nvidia Corp 18.39 -1.82%
AEF Aegon N.v. 7.25% ... 25.31 -1.67%
NUGT Direxion Daily Go... 37.45 -1.60%
JNUG Direxion Daily Jr... 20.80 -1.52%
VALE Vale SA 13.31 -1.48%
SI Siemens AG Ads 130.80 -1.47%
NBL Noble Energy Inc.... 71.77 -1.40%
M Macys Inc. 56.90 -1.16%
Read more at http://thestockmarketwatch.com/markets/pre-market/#RJLYdxc8UM7yAgUM.99
Futures +62
Earnings Preview for the week of April 28 - May 2 some of the bigger names include:
Monday:
Pre Market - NOV, ECL, GLW, CHTR, BEN, TEN, CNA, LH, ROP, SOHU, L
After Hours - SU, HIG, JEC, AMP, VLRS, RKT, OMI, STM, PRE, HLF, BWLD, QCOR, N
Tuesday:
Pre Market - BP, VLO, LYB, MRK, ABB, HCA, S, ETN, GT, TRW, CMI, PCAR, BMY, PH, NOK, HUN, MGM, AGCO, GAS, BSX, OSK, EME, ROK, LKQ, AXE, MHFI, HRS, ESV, COH, MGLN, FRX, FDP, CNX, XYL, CIT
After Hours - ESRX, BSAC, AFL, X, EBAY, STX, ACE, MAR, CHRW, EIX, GNW, AXS, OI, NCR, TRN, FISV, THG, WSH, MEOH, GPRE, PNRA, BXP, TWTR, DWA,
Wednesday:
Pre Market - PSX, AUO, WLP, IP, TWX, EXC, CVE, PBF, SO, NEE, D, ADP, TRI, GIB, ABX, ACT, HES, TX, NI, SEE, LVLT, INGR, MWV, WEC, SPW, ENR, H, HSP, JLL, CG, SLGN, ADT, GRMN,
After Hours - MET, INT, TSO, FLEX, WDC, LNC, FNF, PPC, ASH, CBG, TEX, WMB, BGC, WPZ, CNW, MUR, POL, FBHS, MDU, CBT, CACI, DOX, BKD, YELP,
Thursday:
Pre Market - XOM, CAH, NVO, MPC, BG, EPD, MFC, CI, TMUS, TEVA, CTRX, PCG, K, PPL, VIAB, PEG, TXT, LLL, XEL, RRD, CNP, CVI, AVP, MA, BDX, BWA, NGLS, CVRR, BLL, MSI, MYL, PTRY, JAH, PWR, FIS, CLX, SHPG, CPN, ARG, HST, HAR, IVZ, YRCW, RFP, ANR, Q, GG, CHD, CME, IRM, LM, ITT,
After Hours - FLR, KRFT, DVA, TS, MOH, XL, MHK, NU, ALJ, TEG, WU, MRC, NSIT, EXPE, MTZ, MTW, ONNN, DRC, CVD, OUTR, LNKD, AKAM, AEM, VRTX, CHGG,
Friday:
Pre Market - CVX, CVS, MMC, SRE, TRP, EL, SPR, BPL, GEL, NWL, TDS, XLS, USM, AXL, CTB, MSG
TRADING RADAR for WEEK of 4/28 - 5/2 ECONOMIC and EARNINGS
Monday, April 28
US Economics (Time Zone: EST)
10:00 Pending Home Sales MoM - expected 0.8%, prior -0.8%
10:00 Pending Home Sales YoY - exp -10.2%, prior -10.2%
10:30 Dallas Fed - exp 6.0, prior 4.9
11:00 Fed to purchase $1.75b-$2.25b notes in 6 to 7-year range
11:30 Treasury selling $25b 3-month, $23b 6-month bills
Global Economics (Time Zone: GMT)
JPY Retail Sales
CNY Leading Index
Earnings
Before:
Corning (GLW)
National Oilwell Varco (NOV)
Charter Communications (CHTR)
After:
Questcor Pharma (QCOR)
Range Resources (RRC)
Herbalife (HLF)
NetSuite (N)
American Capital Agency Corp (AGNC)
Buffalo Wild Wings (BWLD)
Tuesday, April 29
US Economics (Time Zone: EST)
09:00 S&P/Case Shiller 20-City MoM Home Prices (Feb) - expected 0.7%, prior 0.85%
09:00 S&P/CS YoY - exp 13.00%, prior 13.24%
10:00 Consumer Confidence Index (Apr) - exp 83.0, prior 82.3
11:00 Fed to purchase $2b-$2.5b bonds in 7 to 10-year range
11:30 Treasury selling $25b 52-week, and 4-week bills
1:00 Treasury selling $15b 2-year FRN
Fedspeak
11:45am Former Fed Chair Bernanke speaks in Toronto
Global Economics (Time Zone: GMT)
NZD Trade Balance
06:00 EUR German GfK Consumer Confidence
08:30 GBP GDP (1Q advance)
09:00 EUR Eurozone Consumer Confidence (Apr final)
12:00 EUR German CPI (April prelim)
Earnings
Before:
Bristol-Myers Squibb (BMY)
Archer-Daniels-Midland (ADM)
Cummins (CMI)
Merck (MRK)
MGM Resorts (MGM)
AGCO (AGCO)
Martin Marieta Materials (MLM)
Valero Energy (VLO)
CIT Group (CIT)
HCA Holdings (HCA)
Sprint (S)
McGraw Hill Financial (MHFI)
After:
Marriot (MAR)
Aflac (AFL)
US Steel (X)
Panera Bread (PNRA)
Express Scripts Holdings (ESRX)
eBay (EBAY)
Riverbed (RVBD)
Twitter (TWTR)
Hertz (HTZ)
3D Systems (DDD)
Coach (COH)
Wednesday, April 30
US Economics (Time Zone: EST)
07:00 MBA Mortgage Applications
08:15 ADP Private Payrolls - expected 210K, prior 191K
08:30 Employment Cost Index (1Q) - exp 0.5%, prior 0.5%
08:30 GDP Annualized QoQ (1Q advance) - exp 1.2%, prior 2.6%
08:30 Personal Consumption - exp 1.9%, prior 3.3%
08:30 GDP Price Index - exp 1.5%, prior 1.6%
08:30 Core PCE QoQ - exp 1.2%, prior 1.3%
09:00 ISM Milwaukee - prior 56.03
09:45 Chicago PMI (Apr) - exp 56.5, prior 55.9
2:00 FOMC Rate Decision
3:30pm Former Fed Chairman Bernanke speaking in Washington
Global Economics (Time Zone: GMT)
JPY Industrial Production (Mar prelim)
JPY Markit Manufacturing PMI (Apr)
05:00 JPY Housing Starts
06:00 EUR German Retail Sales
07:00 EUR Spanish GDP (1Q prelim)
07:55 EUR German Unemployment Rate (Apr)
09:00 EUR Eurozone CPI (Apr)
12:30 CAD GDP (Feb)
Earnings
Before:
Hess (HES)
Automatic Data Processing (ADP)
Dominion Resources (D)
International Paper (IP)
Exelon (EXC)
Time Warner (TWX)
Wellpoint (WLP)
Southern Co (SO)
After:
Western Digital (WDC)
Tesoro (TSO)
Shutterfly (SFLY)
Metlife (MET)
Ruckus Wireless (RKUS)
Yelp (YELP)
Level 3 Communications (LVLT)
Thursday, May 1
US Economics (Time Zone: EST)
07:30 Challenger Job Cuts YoY - prior -30.2%
08:30 Initial Jobless Claims - expected 320K, prior 329K
08:30 Continuing Claims - exp 2710K, prior 2680K
08:30 Personal Income - exp 0.4%, prior 0.3%
08:30 Personal Spending - exp 0.6%, prior 0.3%
08:30 PCE Deflator YoY - exp 1.2%, prior 0.9%
08:30 PCE Core YoY - exp 1.2%, prior 1.1%
09:45 Markit US Manufacturing PMI Final - initial 55.4
10:00 ISM Manufacturing - exp 54.2, prior 53.7
10:00 ISM Prices Paid - exp 59.5, prior 59.0
5:00 Domestic Vehicle Sales - exp 12.80M, prior 12.78M
5:00 Total Vehicle Sales - exp 16.20M, prior 16.33M
Fedspeak
8:30am Yellen (dove, chair) to speak in Washington
Global Economics (Time Zone: GMT)
01:00 CNY Manufacturing PMI
08:30 GBP Manufacturing PMI
08:30 GBP Consumer Credit
Earnings
Before:
Avon Products (AVP)
Clorox (CLX)
Exxon Mobil (XOM)
ConocoPhillips (COP)
Beazer Homes (BZR)
Walter Energy (WLT)
Iron Mountain (IRM)
Ocwen Financial (OCN)
Mastercard (MA)
T-Mobile (TMUS)
Alpha Natural Resources (ANR)
Marathon Petroleum (MRO)
Legg Mason (LM)
American Tower (AMT)
Kellogg (K)
After:
Kraft Foods (KRFT)
Kodiak Oil & Gas (KOG)
Tempur Sealy (TPX)
Expedia (EXPE)
OpenTable (OPEN)
Stillwater Mining (SWC)
BioMarin Pharma (BMRN)
Akamai (AKAM)
LinkedIn (LNKD)
Viacom (VIA)
Friday, May 2
US Economics (Time Zone: EST)
08:30 Nonfarm Payrolls - expected 210K, prior 192K
08:30 Private Payrolls - exp 210K, prior 192K
08:30 Manufacturing Payrolls - exp 5K, prior -1K
08:30 Unemployment Rate - exp 6.6%, prior 6.7%
08:30 Average Hourly Earnings YoY - exp 2.1%, prior 2.1%
10:00 Factory Orders - exp 1.5%, prior 1.6%
Global Economics (Time Zone: GMT)
JPY Japan Investors Purchases of Foreign Bonds/Stocks
JPY Employment Change (Mar)
08:30 EUR Manufacturing PMI
08:30 GBP Construction PMI
09:00 EUR Eurozone Unemployment Rate (Mar)
Earnings
Before:
Chevron (CVC)
CVS Caremark (CVS)
Madison Square Garden (MSG)
KCG Holdings (KCG)
good morning
frontrunning:
Russia raises interest rates to 7.5% (FT)
Shanghai to Allow Raw Material Exchanges in Trade Zone (BBG)
US, Japan Fail to Clinch Trade Deal (WSJ)
'We don't have a magic wand', says ECB's Constancio (Reuters)
Tokyo Inflation Quickens to Fastest Since 1992 (BBG)
Demand for Home Loans Plunges (WSJ)
EU banks urged to grasp chance to raise capital (FT)
France Plans Alternatives to Alstom, General Electric Deal (WSJ)
China Money Rate Set for Biggest Weekly Gain in a Month on Taxes (BBG)
Overnight Media Digest
WSJ
* Alibaba Group Holding Ltd is working on a plan that could make its initial public offering the largest in history. The Chinese e-commerce giant and its bankers are discussing adding new shares to the deal, a move that would enable the company to raise funds for itself alongside some of its current investors, according to people familiar with the deal. No final decision has been made, but the addition of new Alibaba shares could help push the IPO beyond $20 billion. (http://r.reuters.com/keq78v)
* Amazon is testing its own delivery network for the final leg of a package's journey to consumers, putting it closer to same-day shipping. Delivering its own packages will give Amazon, stung by Christmas shipping delays, more control over the shopping experience. (http://r.reuters.com/req78v)
* Four big Silicon Valley technology companies - Apple , Google, Intel and Adobe Systems , agreed to settle a lawsuit in which 64,000 employees accused them of conspiring not to recruit each other's workers, depressing wages. A person close to the defendants said the settlement price was around $325 million. (http://r.reuters.com/seq78v)
* GE is in talks to buy the energy operations of France's Alstom, a move that would help the U.S. company reduce its reliance on its finance business. GE Chief Executive Jeff Immelt is under pressure to boost earnings from areas such as jet engines, medical devices and power plants to reduce the company's reliance on its finance arm. A deal for the French engineering company's power-generation and transmission-grid assets would do that at a stroke. (http://r.reuters.com/teq78v)
* In one of the last major pending cases stemming from the financial crisis against an individual, former Bank of America Corp's finance chief Joe Price has agreed to pay $7.5 million under an agreement with New York State Attorney General Eric Schneiderman. The move ends a long-running legal battle over the lender's crisis-era acquisition of Merrill Lynch. (http://r.reuters.com/weq78v)
* Jack Ma, the co-founder of Chinese e-commerce giant Alibaba, is pouring much of his personal wealth into the creation of one of Asia's largest philanthropic trusts, highlighting what many see as the dawn of a new era of giving among China's freshly minted billionaires. (http://r.reuters.com/fuq78v)
* Scott Price, the chief executive of Wal-Mart Stores Inc's Asia division, who presided over the region as it dropped plans to open retail stores in India and contended with authorities in China over food-safety fines, is stepping down from his role to take an international strategy position at the company's Bentonville, Arkansas, headquarters. (http://r.reuters.com/zuq78v)
* KKR & Co plans to allow its investors to sell portions of their stakes in buyout funds through a private market run by Nasdaq OMX Group Inc, thought to be the first time pieces of these exclusive vehicles have been traded this way in the United States. (http://r.reuters.com/raq78v)
* A Los Angeles federal judge Thursday sentenced former KPMG LLP partner Scott London to 14 months in prison for insider trading. London pleaded guilty last year to an insider-trading scheme, admitting that he passed sensitive information to a friend about KPMG clients, including Herbalife Ltd and Skechers USA Inc. (http://r.reuters.com/wyq78v)
FT
Barclays Plc defended its decision to pay higher bonuses as it faces a shareholder revolt led by Standard Life , despite warning of another poor quarter at its investment bank.
Pascal Soriot, chief of Britain's second largest pharmaceuticals company AstraZeneca Plc, announced the possible sale or spin-off of non-core units after denying media reports of a $100 billion takeover by Pfizer Inc.
France's new Prime Minister Manuel Valls has warned General Electric that the Socialist government is ready to fight to protect its national interests if the U.S. conglomerate tries to buy train and power plant builder Alstom SA.
Former KPMG auditor Scott London was sentenced to 14 months in prison after he plead guilty to giving confidential client information to his golf partner in exchange for watches and concert tickets.
London's largest and most expensive office building, HSBC's global headquarters, is up for sale for over 1.1 billion pounds ($1.85 billion), a record price for the British market.
NYT
* The U.S. Food and Drug Administration on Thursday approved the first alternative to the long-used Pap test as a primary screening method for cervical cancer, in the face of opposition from some women's groups and health organizations. The new test, developed by Roche Holding AG, detects the DNA of the human papilloma virus, which causes almost all cases of cervical cancer, in a sample taken from the cervix. (http://r.reuters.com/hyq78v)
* Lobbying efforts are likely to increase after the disclosure Wednesday evening that the Federal Communications Commission would soon release preliminary rules allowing for the creation of special, faster lanes for online content to flow to consumers - for content providers willing to pay for it. (http://r.reuters.com/jyq78v)
* In a move that raised the stakes for the government's crackdown on banks that sold the troubled mortgage investments during the financial crisis, the Justice Department made Bank of America Corp an opening settlement offer of roughly $20 billion several weeks ago, according to people briefed on the matter. (http://r.reuters.com/ryq78v)
* Mayor Ed Murray of Seattle said that his effort to build consensus behind raising the city's minimum wage to $15 per hour, more than twice the federal rate, had faltered amid continuing differences between business leaders and labor unions that had been advising him on the issue. (http://r.reuters.com/zyq78v)
* A day after Canada issued stringent new rules for the transportation of oil by rail, federal regulators in the United States said on Thursday that they would push forward their own tank standards next week, potentially resolving a critical safety issue that has been mired in regulatory limbo for years. (http://r.reuters.com/car78v)
* The panel charged with choosing the locations of four new casinos in New York State said on Thursday that 22 companies had submitted proposals, each paying an initial $1 million application fee, in the first step of what is expected to be an intense bidding process. (http://r.reuters.com/dar78v)
Canada
THE GLOBE AND MAIL
* Canadian Employment Minister Jason Kenney has put an immediate moratorium on allowing restaurants to hire temporary foreign workers after a series of abuse allegations. (http://r.reuters.com/pes78v)
* The Conservatives and Liberals are tied in the national vote for the first time in months, as Canadians appear unmoved by the controversy whirling around the government's elections bill, a new poll has found. (http://r.reuters.com/res78v)
Reports in the business section:
* Oil producers in Canada and the United States could see their plans for aggressive expansion of crude-by-rail short-circuited if American regulators follow Ottawa's lead and force the industry to retire or retrofit tank cars built before 2011. (http://r.reuters.com/zes78v)
NATIONAL POST
* The race for Alberta's next premier and leader of its Progressive Conservative party is on hold while potential runners wait for former federal cabinet minister Jim Prentice to decide. Prentice is rumoured to be considering the possibility, a move that is winning support among Tory MLAs. (http://r.reuters.com/pus78v)
* Graduates of a planned law school at a Christian university in British Columbia that forbids sexual intimacy outside heterosexual marriage will not be able to practise in Ontario, that province's law society decided Thursday. (http://r.reuters.com/wus78v)
FINANCIAL POST
* Canadians can expect to enjoy relatively cheap borrowing costs for some time to come - perhaps years - even after the economy returns to full capacity and the Bank of Canada starts hiking interest rates, bank governor Stephen Poloz said Thursday. (http://r.reuters.com/cys78v)
* Barrick Gold Corp chairman Peter Munk levelled a pointed criticism of Newmont Mining Corp on Thursday, saying he has struggled to strike a merger with his U.S. rival because the company is extremely bureaucratic and not shareholder-friendly. (http://r.reuters.com/dys78v)
China
- The current volatility of China's yuan currency is normal as international capital flows exert a stronger influence on the exchange rate, an official in charge of international balance of payments at the State Administration of Foreign Exchange said in a news conference.
- About 57 percent of the 883 listed companies that have posted first-quarter earnings have seen an increase in net profit and around 200 listed companies are expecting a gain in the first half earnings, according to calculations by the newspaper based on available data.
SHANGHAI SECURITIES NEWS
- China Petroleum & Chemical Corp has chosen four financial institutions, including China International Capital Corp Ltd, Deutsche Bank, CITIC Securities and Bank of America Corp, as financial advisers for its ongoing ownership reform aimed at introducing social and private investment, according to a statement posted on Friday.
SECURITIES TIMES
- Baidu Inc launched a big data engine service on Thursday that allows firms in partnership with Baidu to use its core store of big data gathered from its search engine and cloud service.
CHINA DAILY
- U.S. President Barack Obama has betrayed the post-World War II international order by endorsing Japan's de facto control over the Diaoyu Islands, and by extending the U.S.-Japan security treaty to those islands is both morally and legally wrong, an editorial said.
Britain
The Telegraph
BARCLAYS IN ROW WITH TOP INVESTOR OVER ATTACK ON PAY
Barclays Plc has become embroiled in a row with one of its biggest investors after being criticised over the bank's decision to increase bonuses last year despite a fall in profits. (http://link.reuters.com/pyp78v)
ASTRAZENECA BOSS DEFLECTS TALK OF PFIZER BID
AstraZeneca Plc boss Pascal Soriot has poured cold water on the prospect of a deal between the British company and U.S. giant Pfizer Inc by making clear he is not interested in mega-mergers. (http://link.reuters.com/bap78v)
GHERKIN TOWER ENTERS RECEIVERSHIP
London's Gherkin tower has entered receivership and will likely be sold after the loan appreciated by 60 percent and the co-owners defaulted several times over the past five years. (http://link.reuters.com/qyp78v)
FORMER KPMG PARTNER SCOTT LONDON JAILED FOR 14 MONTHS FOR LEAKING INFORMATION
A former partner at KPMG has been jailed for 14 months after pleading guilty to leaking confidential information about the audit firm's clients. (http://link.reuters.com/syp78v)
CONFIDENT BRITISH RETAILERS EXPECT SALES TO CLIMB FURTHER
Optimism among British retailers has climbed to its highest level in more than three years, providing further evidence that the recovery is gathering pace.
Sales at retailers rose for a fifth consecutive month in April, a survey by the Confederation of Business Industry showed on Thursday. (http://link.reuters.com/zyn78v)
The Guardian
BBC SUSPENDS CBI MEMBERSHIP OVER ITS CAMPAIGN AGAINST SCOTTISH INDEPENDENCE
The BBC has joined the exodus from Britain's leading business lobby group, the CBI, after it registered to officially campaign against the Scottish independence referendum. (http://link.reuters.com/ryp78v)
STARBUCKS REPORTS FIRST EVER DROP IN UK SALES IN 2013
Starbucks Corp suffered its first ever drop in UK sales last year, a period in which the company became the subject of boycotts and public criticism over its tax affairs. (http://link.reuters.com/vep78v)
The Times
THREE BLN STG FEAR FOR CITY AS BRITAIN FACES DEFEAT ON EU SHARE TAX
An EU tax on financial transactions is set to move closer next week with Britain expected to suffer an embarrassing defeat in its legal attempt to block the move. (http://link.reuters.com/tup78v)
NOT SO BIG DATA FOR ROSSLYN IPO
Unease over lofty stock market valuations for start-up technology companies has forced Rosslyn Data Technologies to halve the value of its flotation. (http://link.reuters.com/wup78v)
Fly On The Wall 7:00 AM Market Update
ECONOMIC REPORTS
Domestic economic reports scheduled today include:
Markit services PMI for April at 9:55--consensus 55.5
U. of Michigan consumer sentiment index for April at 9:55--consensus 83.0
ANALYST RESEARCH
Upgrades
Celgene (CELG) upgraded to Overweight from Neutral at Piper Jaffray
DeVry (DV) upgraded to Overweight from Neutral at Piper Jaffray
Gigamon (GIMO) upgraded to Strong Buy from Buy at Needham
IPC The Hospitalist Co. (IPCM) upgraded to Outperform at Wells Fargo
Landstar System (LSTR) upgraded to Buy from Hold at Deutsche Bank
Maxim Integrated (MXIM) upgraded to Buy from Neutral at Citigroup
NetScout (NTCT) upgraded to Buy from Hold at Wunderlich
RTI Surgical (RTIX) upgraded to Buy from Hold at Canaccord
Selective Insurance (SIGI) upgraded to Buy from Neutral at BofA/Merrill
Tortoise Energy (TYG) upgraded to Neutral from Underperform at BofA/Merrill
Under Armour (UA) upgraded to Buy from Hold at Stifel
VASCO Data Security (VDSI) upgraded to Buy from Hold at Topeka
Downgrades
Aetna (AET) downgraded to Neutral from Buy at Citigroup
Amazon.com (AMZN) downgraded to Outperform from Strong Buy at Raymond James
Analog Devices (ADI) downgraded to Neutral from Buy at Citigroup
Fifth Third Bancorp (FITB) downgraded to Market Perform from Outperform at BMO Capital
HSBC (HSBC) downgraded to Underweight from Overweight at Morgan Stanley
Life Time Fitness (LTM) downgraded to Perform from Outperform at Oppenheimer
Linear Technology (LLTC) downgraded to Neutral from Buy at Citigroup
Suez Environnement (SZEVY) downgraded to Equal Weight from Overweight at Morgan Stanley
USG (USG) downgraded to Neutral from Buy at Longbow
Unilever (UN) downgraded to Equalweight from Overweight at Barclays
Initiations
AEGON (AEG) initiated with a Buy at Deutsche Bank
BP (BP) initiated with a Buy at Jefferies
Dot Hill Systems (HILL) initiated with a Buy at Wunderlich
Navios Acquisition (NNA) initiated with a Buy at Citigroup
Nord Anglia (NORD) initiated with a Neutral at Goldman
Nord Anglia (NORD) initiated with an Outperform at BMO Capital
Nord Anglia (NORD) initiated with an Overweight at Barclays
Regado Biosciences (RGDO) initiated with a Buy at Deutsche Bank
Royal Dutch Shell (RDS.A) initiated with a Hold at Jefferies
TransEnterix (TRXC) initiated with a Buy at Stifel
COMPANY NEWS
Wal-Mart (WMT) named Greg Foran as president and CEO of Walmart Asia
Starbucks (SBUX) said K-Cup sales grew 33% in Q2. The company reaffirmed its FY14 revenue outlook and said it expects same-store sales growth for 2014 to be in the mid-single digits
Microsoft (MSFT) said it sold 1.2M Xbox One units during Q3 and said Windows volume licensing revenue grew 11%
Clean Harbors (CLH) said it has been in dialogue with the company's management regarding certain actions the fund believes Clean Harbors can take to enhance shareholder value
Bank of America (BAC) named Geoffrey Greener Chief Risk Officer
Amazon (AMZN) provided a Q2 revenue outlook that was in-line with expectations. The company said third party growth continues to be strong
Covidien (COV) said it expects to return to double digit EPS growth, possibly as soon as Q3
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Visa (V), WABCO (WBC), Aon plc (AON), Tyco (TYC), Covidien (COV), Gulf Island Fabrication (GIFI), Forum Energy (FET), Basic Energy (BAS), Newmont Mining (NEM), Weatherford (WFT), Minerals Technologies (MTX), Olin Corp. (OLN), PDF Solutions (PDFS), AptarGroup (ATR), Universal Health (UHS), Masco (MAS), Deckers Outdoor (DECK), Marketo (MKTO), Monolithic Power (MPWR), Superior Energy (SPN), E2open (EOPN), SVB Financial (SIVB), KLA-Tencor (KLAC), Altera (ALTR), Healthways (HWAY), Applied Micro Circuits (AMCC), Synaptics (SYNA), Hanesbrands (HBI), Universal Truckload (UACL), SunPower (SPWR), QCR Holdings (QCRH), Principal Financial (PFG), Freescale (FSL), VeriSign (VRSN), DeVry (DV), PerkinElmer (PKI), Lattice Semiconductor (LSCC), Open Text (OTEX), Qlik Technologies (QLIK), Stericycle (SRCL), Washington Banking (WBCO), Calamos (CLMS), Edwards Lifesciences (EW), Micrel (MCRL), Regal Entertainment (RGC), Broadcom (BRCM), Cirrus Logic (CRUS), Itron (ITRI), Pandora (P), Netgear (NTGR), Microsoft (MSFT), Echo Global (ECHO), Las Vegas Sands (LVS)
Companies that missed consensus earnings expectations include:
Barnes Group (B), ImmunoGen (IMGN), Corporate Office Properties (OFC), Whirlpool (WHR), Briggs & Stratton (BGG), Seacor Holdings (CKH), Builders FirstSource (BLDR), Reinsurance Group (RGA), First Business Financial (FBIZ), OceanFirst Financial (OCFC), First BanCorp (FBP), Key Technology (KTEC), Internap (INAP), Leggett & Platt (LEG), Validus (VR), Republic Services (RSG), WSFS Financial (WSFS), Digi International (DGII), Cliffs Natural (CLF), Delta Apparel (DLA), AtriCure (ATRC), Federated Investors (FII), City National (CYN), MDC Partners (MDCA), Mellanox (MLNX), Chubb (CB), Merit Medical (MMSI), Abaxis (ABAX), CalAmp (CAMP), Century Aluminum (CENX)
Companies that matched consensus earnings expectations include:
Progressive Waste (BIN), NewBridge Bancorp (NBBC), Seacoast Banking (SBCF), National Bank (NBHC), TFS Financial (TFSL), Mattson (MTSN), Dime Community (DCOM), Gigamon (GIMO), Weingarten Realty (WRI), Cincinnati Financial (CINF), Microsemi (MSCC), Swift Transport (SWFT), HomeAway (AWAY), Cerner (CERN), Amazon.com (AMZN), Hittite Microwave (HITT), Starbucks (SBUX), VCA Antech (WOOF)
NEWSPAPERS/WEBSITES
Nokia (NOK) to appoint Suri upcoming CEO next week, Reuters says
Tech companies (AAPL, GOOG, ADBE, INTC) agree to settle wage lawsuit, WSJ says
KKR (KKR), Nasdaq (NDAQ) prep market for fund stakes, WSJ reports
Netflix (NFLX) in deal with Atlantic Broadband for streaming services (TIVO), WSJ says
Alstom (ALSMY) board plans meeting to discuss possible GE (GE) deal, Bloomberg reports
Bank of America (BAC) in settlement talks with Dept. of Justice for $10B+, CNBC says
Nike (NKE) struggling in health wearables market, Re/code reports
SYNDICATE
Carrols Restaurant (TAST) 10M share Secondary priced at $6.20
Codorus Valley Bancorp (CVLY) files to sell 650k shares for holders
Lombard Medical (EVAR) 5M share Secondary priced at $11.00
NeuroMetrix (NURO) files to sell $10M in common stock and warrants
New Residential (NRZ) files to sell 25M shares of common stock
Plug Power (PLUG) 22.6M share Secondary priced at $5.50
Quotient (QTNT) 5M share IPO priced at $8.00
SunCoke Energy Partners (SXCP) 2.8M share Secondary priced at $29.03
Yingli Green Energy (YGE) 25M share Secondary priced at $3.50
Average:
data:
PMI Services Flash
[Report][Bullet9:45 AM ET
Consumer Sentiment
[Report][djStar]9:55 AM ET
Futures -57
good morning
Frontrunning:
Ukraine forces kill up to five rebels, Putin warns of consequences (Reuters)
Obama to Russia: More sanctions are 'teed up' (AP)
Vienna Banks Bemoan Russia Sanctions Testing Cold War Neutrality (BBG)
GE’s $57 Billion Cash Overseas Said to Fuel Alstom Deal (BBG)
GM posts lower first-quarter profit after recall costs (Reuters)
Apple Stock Split Removes Obstacle to Inclusion in Dow (BBG)
U.S. regulators to propose new net neutrality rules in May (Reuters)
U.K. Resurrecting Loans for 95% of Value Seen as Risky (BBG)
Obama reaffirms commitment to Japan on tour of Asia allies (Reuters)
Bank Cutting Commodities Trade Severs Link With Equities (BBG)
The left’s secret club (Politico)
Russian social media CEO quits, flees country (AP)
Overnight Media Digest
WSJ
* The Food and Drug Administration plans Thursday to impose the first federal regulations on electronic cigarettes, eventually banning sales of the popular devices to anyone under 18 and requiring makers to gain FDA approval for their products. (http://r.reuters.com/ruh78v)
* Regulators are proposing new rules on Internet traffic that would allow broadband providers to charge companies a premium for access to their fastest lanes. The Federal Communications Commission plans to put forth its rules on Thursday. The proposal marks the FCC's third attempt at enforcing "net neutrality" - the concept that all Internet traffic should be treated equally. (http://r.reuters.com/sah78v)
* Primark, a clothing chain whose formula of fashionable looks at rock-bottom prices has proved a hit with UK shoppers, said Wednesday it plans to open its first U.S. store late next year in the former Boston home of the original Filene's Department Store. (http://r.reuters.com/meh78v)
* New cars and trucks-including some of the season's hottest sellers-are stacked up outside U.S. factories as auto makers and railroads struggle to overcome delays brought on by winter weather and the rise of production outside the Midwest. The logjams have left dealers short of some popular models, such as the Ford Explorer sport-utility vehicle and Toyota RAV4, ahead of the biggest months of the year for new-car sales. (http://r.reuters.com/buh78v)
* Zynga Inc said founder Mark Pincus is giving up his operating role at the videogame company, one of several management changes announced along with first-quarter results that included a 36 percent decline in revenue. Pincus has decided to give up his role as chief product officer. (http://r.reuters.com/heh78v)
* Apple Inc in a nod to restive shareholders, added $30 billion to its stock-buyback plan, raised its dividend about 8 percent and declared an unusually large 7-for-1 stock split as it reported strong iPhone sales that defied expectations of a slowdown. (http://r.reuters.com/vah78v)
* A surge in prices helped drive down sales of newly built homes in March, the latest indication that the housing market is struggling to regain traction. Sales of new single-family homes fell 14.5 percent from February to a seasonally adjusted annual rate of 384,000, the Commerce Department said Wednesday. That was the lowest annual rate since last July, though the pace for January and February was revised higher. (http://r.reuters.com/weh78v)
* Facebook Inc proved its recent advertising windfalls were no fluke, nearly tripling profit on a 72 percent increase in revenue in its first quarter, surpassing Wall Street expectations. Chief financial officer David Ebersman is stepping down from the company two years after he orchestrated one of the largest, and tumultuous, IPOs in history. (http://r.reuters.com/xah78v)
* Chobani Inc reached a deal for a $750 million investment from private equity firm TPG, as the maker of Greek yogurt prepares for a potential initial public offering and expands into other products such as cooking ingredients and desserts. (http://r.reuters.com/zah78v)
* A federal bankruptcy watchdog overseeing TelexFree's Chapter 11 case found compelling evidence of fraud, dishonesty and gross mismanagement and asked a judge to order the appointment of a trustee to take control of the company. TelexFree has been accused of illegally operating a $1 billion pyramid scheme targeting Brazilian and Dominican immigrants. Most of the company's leadership and several of its promoters have been charged with civil fraud by the Securities and Exchange Commission. (http://r.reuters.com/rah78v)
FT
Warren Buffett, whose Berkshire Hathaway Inc is the Coca-Cola Co's largest shareholder, said the U.S. beverage company's equity pay plan was "excessive" but abstained from voting on the scheme on Wednesday.
Mark Pincus, founder of troubled games maker Zynga Inc , is stepping out of day-to-day work at the company as it seeks to remake itself.
A surprise 17 percent jump in iPhone unit sales, driven by China, helped Apple Inc beat revenue expectations for the first quarter, lifting shares by 8 percent.
Facebook Inc, the world's largest social network, posted first-quarter results that sent its stock up 4 percent in after-hours trading, quelling recent doubts over its ability to make money on mobile.
Boeing Co raised its full-year earnings expectations and posted results ahead of analysts' expectations for the first three months of the year, as Chief Executive Jim McNerney said the aerospace and defence group was braced for "significant and sustained growth".
NYT
* New York's financial regulator filed a lawsuit against a subprime auto lender, accusing it of violating certain provisions of the Dodd-Frank financial overhaul act. The complaint filed in Federal District Court in Manhattan, contends that Long Island-based Condor Capital Corporation siphoned millions of dollars away from the accounts of unwitting borrowers. (http://r.reuters.com/nah78v)
* The principle that all Internet content should be treated equally as it flows through cables and pipes to consumers looks all but dead. The Federal Communications Commission said on Wednesday that it would propose new rules that allow companies like Walt Disney Co, Google Inc or Netflix Inc to pay Internet service providers like Comcast Corp and Verizon Communications Inc for special, faster lanes to send video and other content to their customers. (http://r.reuters.com/qah78v)
* Going further than any state so far, Vermont on Wednesday passed a law requiring the labeling of foods that contain genetically engineered ingredients. Though the move came in a tiny state far from the nation's population centers, proponents of such labeling immediately hailed the legislative approval as a significant victory. (http://r.reuters.com/ceh78v)
* The Justice Department's criminal division, which oversees some of the biggest investigations into Wall Street and corporate crime, is adding to its ranks. Marshall L. Miller, a longtime federal prosecutor in Brooklyn, was named to the criminal division's No. 2 spot. (http://r.reuters.com/keh78v)
* Amazon.com Inc will stream a selection of HBO series, mini-series and original movies as part of its Prime subscription service, the latest alliance between technology and entertainment companies trying to capture viewers who are moving online. (http://r.reuters.com/neh78v)
* Mark Pincus, the founder of Zynga Inc, is stepping back from the once-hot social gaming company as its new leader seeks a turnaround. Zynga said that Pincus decided to give up all operational responsibilities at the company, though he will remain its chairman and largest shareholder. (http://r.reuters.com/qeh78v)
Canada
THE GLOBE AND MAIL
* Canada's Conservative government is launching a national discussion of proposed new pension plans that share the investment risk between employers and employees. (http://r.reuters.com/byj78v)
* No damage was reported after a 6.7 magnitude earthquake hit off the northern coast of Vancouver Island on Wednesday night. The U.S. Geological Survey reported that the epicentre was about 94 kilometres south of Port Hardy and struck at a depth of 11 kilometres. (http://r.reuters.com/nyj78v)
Reports in the business section:
* McDonald's Canada has suspended further use of the temporary foreign worker program after criticism that several franchises at the fast-food chain were favouring foreign workers over seemingly qualified Canadian applicants. (http://r.reuters.com/gyj78v)
NATIONAL POST
* As Philippe Couillard and his Liberal cabinet were sworn in Wednesday at the legislature in Quebec City, the prominent place given the Canadian flag and the lieutenant governor - the Queen's representative - made it plain that the Parti Quebecois era was over. (http://r.reuters.com/syj78v)
* Canada, which has long blocked discussion of Arctic issues at NATO, is under increasing pressure from allies to drop its resistance and come up with a co-ordinated response to Russia's aggressive militarization in the Far North. (http://r.reuters.com/tyj78v)
FINANCIAL POST
* Almost never has an activist investor expressed such love for a company's management and strategy as Bill Ackman's cross-border crush on Valeant Pharmaceuticals International Inc . (http://r.reuters.com/mak78v)
* Crescent Point Energy Corp has signed an agreement to buy CanEra Energy Corp, a privately held oil and gas producer in southeast Saskatchewan, in a deal valued at C$1.1 billion, including debt. (http://r.reuters.com/zak78v)
China
CHINA SECURITIES JOURNAL
- Another 10 companies have announced plans to list on China's equity markets, bringing the total number of firms planning listing to 75.
- Total profit of state-owned companies reached 311 billion yuan ($49.86 billion) in the first quarter of this year, up 3.4 percent from a year earlier, the State-owned Assets Supervision and Administration Commission said.
SHANGHAI SECURITIES NEWS
- The China Securities Regulatory Commission said it would perform random checks on companies seeking initial public offering to ensure that the information disclosed in their prospectus are accurate.
- China State Construction Engineering Corp's 2013 net profit rose 29.6 percent to 20.4 billion yuan ($3.27 billion) and said it expects newly signed contracts in 2014 to reach more than 1.2 trillion yuan.
CHINA DAILY
- There will be an oversupply of office space in China in the coming three years, with second-tier cities being hit first, industry analysts said.
- China's household consumption may rise to as high as 50 percent of gross domestic product by 2020, compared with 35 percent today, findings from Nielson Holdings BV showed. The increase will create investment opportunities in second-and third-tier cities.
SHANGHAI DAILY
- China is on track to meet mandatory targets on cutting pollution and improving energy efficiency by 2015, a state planning official said, after the program had fallen behind due to strong economic growth in 2011 and 2012.
Britain
The Telegraph
INDEPENDENT SCOTLAND HAS PARALLELS WITH ICELAND, WARNS S&P
Scotland could end up with a banking system much like that of Iceland on the eve of the financial crisis if it votes for independence, according to a warning from one of the world's leading rating agencies. (http://link.reuters.com/dyg78v)
REPORT INTO CO-OP BANK FAILURE TO BLAME GOVERNANCE
The Co-op Bank's near collapse will be blamed on the struggling lender's poor governance, in a report to be published next week by a former senior civil servant. (http://link.reuters.com/fyg78v)
The Guardian
BARCLAYS FACES ROUGH RIDE AT AGM OVER TAX HAVENS AND BANKERS' BONUSES
Barclays is braced for a stormy annual shareholder meeting on Thursday with protesters pledging to question its role in tax havens, funding of coal mines and the 9 billion pounds ($15.10 billion) of bonuses paid out to its investment bankers since the financial crisis. (http://link.reuters.com/hyg78v)
ROYAL MAIL IN SPOTLIGHT AGAIN AS MPS QUESTION BANKERS WHO HANDLED SELL-OFF
The Royal Mail privatisation will be the subject of fresh scrutiny by Members of Parliament next week when bankers from Goldman Sachs and UBS - which handled the sell-off of the 500-year-old institution - are summoned to give evidence to a high-profile parliamentary committee. (http://link.reuters.com/gyg78v)
PRIMARK TO ENTER U.S. MARKET WITH BOSTON STORE
Primark, the fashion store that brought the 3 pound jumper dress to the British shopper, is to open in the United States as it attempts to become a global chain. (http://link.reuters.com/qyg78v)
The Independent
PATISSERIE VALERIE OWNER HOPES TO RAISE 33 MLN STG IN LONDON FLOAT
Serial entrepreneur Luke Johnson, the owner of Patisserie Valerie, is returning to the stock market with the planned 170 million pound flotation of the cafe chain on London's junior AIM exchange. (http://link.reuters.com/jyg78v)
SPORTS DIRECT GOES ON THE ATTACK AFTER MIKE ASHLEY BONUS VOTE
Mike Ashley's Sports Direct has launched an attack against its institutional investors, warning of "further uncertainty" after they refused to back a multimillion-pound payout to the billionaire founder. (http://link.reuters.com/pyg78v)
DRAX TUMBLES OVER GOVERNMENT U-TURN ON SUBSIDY TERMS
Shares in Drax Group fell 10 percent after the government said a new subsidy scheme would only apply to limited part of its plan to convert much of its giant coal-fired plant into biomass burners. (http://link.reuters.com/myg78v) ($1 = 0.5960 British pounds)
Fly On The Wall 7:00 AM Market Snapshot
ANALYST RESEARCH
Upgrades
Aixtron (AIXG) upgraded to Neutral from Underweight at HSBC
Apple (AAPL) upgraded to Buy from Outperform at CLSA
Asbury Automotive (ABG) upgraded to Buy from Hold at BB&T
Ciena (CIEN) upgraded to Buy from Neutral at UBS
Cullen/Frost (CFR) upgraded to Market Perform from Underperform at Keefe Bruyette
Ericsson (ERIC) upgraded to Outperform from Market Perform at BMO Capital
First Midwest (FMBI) upgraded to Buy from Neutral at Guggenheim
Goodyear Tire (GT) upgraded to Conviction Buy from Buy at Goldman
HMS Holdings (HMSY) upgraded to Outperform from Perform at Oppenheimer
Hawaiian Holdings (HA) upgraded to Neutral from Underperform at BofA/Merrill
M&T Bank (MTB) upgraded to Buy from Hold at Deutsche Bank
MicroStrategy (MSTR) upgraded to Buy from Hold at Deutsche Bank
NuStar Energy (NS) upgraded to Buy from Hold at Stifel
O'Reilly Automotive (ORLY) upgraded to Strong Buy from Market Perform at Raymond James
Republic Airways (RJET) upgraded to Neutral from Underperform at BofA/Merrill
Southwest Bancorp (OKSB) upgraded to Outperform from Market Perform at Raymond James
TriQuint (TQNT) upgraded to Outperform from Market Perform at Northland Securities
Downgrades
AT&T (T) downgraded to Long-Term Buy from Buy at Hilliard Lyons
Canadian National (CNI) downgraded to Market Perform from Outperform at BMO Capital
Core Laboratories (CLB) downgraded to Underweight from Overweight at Morgan Stanley
First Industrial Realty (FR) downgraded to Hold from Buy at KeyBanc
Randgold Resources (GOLD) downgraded to Neutral from Overweight at HSBC
Southern Copper (SCCO) downgraded to Neutral from Buy at BofA/Merrill
Susser Holdings (SUSS) downgraded to Neutral from Outperform at Macquarie
Xilinx (XLNX) downgraded to Neutral from Outperform at Credit Suisse
Initiations
NXP Semiconductors (NXPI) initiated with an Outperform at BMO Capital
Nord Anglia (NORD) initiated with an Overweight at JPMorgan
Xerox (XRX) initiated with a Positive at Susquehanna
YY Inc. (YY) initiated with a Buy at Maxim
COMPANY NEWS
Apple (AAPL) announced several capital actions, including a $30B increase in its share repurchase authorization, an 8% increase in its quarterly dividend to $3.29 per share and a 7-for-1 stock split that will take effect in June. Apple's quarterly iPhone sales totaled 43.7M, topping estimates, while iPad sales disappointed
Facebook (FB) said CFO David Ebersman will step down and will be succeeded by David Wehner, currently the company's VP, Corporate Finance and Business Planning. Facebook announced that its mobile daily active users totaled 609M at the end of Q1, and the company's revenue from advertising grew 82% to $2.27B, with 59% of its ad revenue coming from mobile. The company also said Messenger, Instagram both reached 200M monthly active users in Q1
Qualcomm (QCOM) disclosed receipt of a "Wells Notice" from the SEC that the SEC has made a preliminary determination recommending the filing of enforcement action against the company related to anti-bribery violations
Zynga (ZNGA) announced that founder Mark Pincus will move on from his role as Chief Product Officer but continue to serve as chairman of the company's board
Ericsson (ERC) announced the division of business unit networks into two units
Men's Wearhouse (MW) extended its tender offer for Jos. A. Bank (JOSB) to May 7
Herbalife (HLF) said ABC report raises questions Ackman should answer
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Wyndham (WYN), NorthWestern (NWE), Alamos Gold (AGI), Cabot Microelectronics (CCMP), Starwood Hotels (HOT), Helmerich & Payne (HP), Diamond Offshore (DO), Potash (POT), Cash America (CSH), Stanley Black & Decker (SWK), Aetna (AET), Time Warner Cable (TWC), VASCO Data Security (VDSI), Logitech (LOGI), NXP Semiconductors (NXPI), Northfield Bancorp (NFBK), TriState Capital (TSC), O'Reilly Automotive (ORLY), Teradyne (TER), Orrstown Financial (ORRF), PTC Inc. (PTC), Sun Bancorp (SNBC), Oceaneering (OII), Brookline Bancorp (BRKL), First Interstate (FIBK), Service Corp. (SCI), Eagle Bancorp (EGBN), CVB Financial (CVBF), Equifax (EFX), MKS Instruments (MKSI), Infinera (INFN), Callaway Golf (ELY), CoStar Group (CSGP), West Corp. (WSTC), Financial Institutions (FISI), Selective Insurance (SIGI), Lam Research (LRCX), Fortinet (FTNT), Apple (AAPL), Aspen Insurance (AHL), Tyler Technologies (TYL), Allied World (AWH), Flowserve (FLS), Exponent (EXPO), Hudson Technologies (HDSN), Ferro (FOE), E-Trade (ETFC), Assurant (AIZ), Symetra Financial (SYA), Everest Re (RE), Polycom (PLCM), Citrix (CTXS), Robert Half (RHI), F5 Networks (FFIV), TriQuint (TQNT), Allegiant Travel (ALGT), LSI Corp. (LSI), On Assignment (ASGN), Align Technology (ALGN), Oritani Financial (ORIT), Facebook (FB), Qualcomm (QCOM)
Companies that missed consensus earnings expectations include:
Invacare (IVC), PulteGroup (PHM), Dunkin' Brands (DNKN), Colfax (CFX), WESCO (WCC), Patterson-UTI Energy (PTEN), Safeguard Scientifics (SFE), CARBO Ceramics (CRR), Novartis (NVS), Old Second Bancorp (OSBC), The Bancorp (TBBK), TAL International (TAL), LPL Financial (LPLA), NewMarket (NEU), Morningstar (MORN), Graco (GGG), Kaiser Aluminum (KALU), Churchill Downs (CHDN), Susquehanna (SUSQ), Ingram Micro (IM), Xilinx (XLNX), Electro Scientific (ESIO), Cheesecake Factory (CAKE), Varian Medical (VAR), IPC The Hospitalist Co. (IPCM), Interface (TILE), ResMed (RMD), Famous Dave's (DAVE), Safeway (SWY), Fusion-io (FIO), SunCoke Energy (SXC), Monarch Casino (MCRI), Chicago Bridge & Iron (CBI), Texas Capital (TCBI), Greenhill & Co. (GHL), Datawatch (DWCH), United Stationers (USTR), Tractor Supply (TSCO), Stryker (SYK), Rocky Brands (rcky)
Companies that matched consensus earnings expectations include:
Eli Lilly (LLY), Sequans (SQNS), Core Laboratories (CLB), Blackhawk (HAWK), Innovative Solutions (ISSC), Angie's List (ANGI), Zynga (ZNGA), ServiceNow (NOW)
NEWSPAPERS/WEBSITES
FDA to impose first federal regulations on e-cigarettes (MO, LO, PM, RAI, VGR), WSJ reports
Publicis (PUBGY) sees U.K. tax approval in Omnicom (OMC) deal, WSJ reports
General Electric (GE) in talks to buy Alstom, Bloomberg says
Alstom says 'not aware' of any potential bid by General Electric (GE), WSJ reports
Buffett (BRK.A): Moving oil by rail safely major industry concern, Reuters reports
General Motors (GM) says it has shipped 'thousands' of replacement ignition switches, Reuters says
Nokia (NOK) to not include India phone plant in Microsoft (MSFT) deal, Bloomberg says
SYNDICATE
Agios Pharmaceuticals (AGIO) 2M share Secondary priced at $44.00
Hannon Armstrong (HASI) 5M share Secondary priced at $13.00
New Source Energy (NSLP) 3M share Secondary priced at $23.25
Parametric Sound (HEAR) files to sell $45M in common stock
Sarepta (SRPT) 2.65M share Secondary priced at $38.00
SunCoke Energy Partners (SXCP) files to sell 2.8M common units
Tsakos Energy (TNP) 11M share Spot Secondary; price range $7.25-$7.50
Yingli Green Energy (YGE) files to sell 25M ADSs
Average:
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Wyndham (WYN), NorthWestern (NWE), Alamos Gold (AGI), Cabot Microelectronics (CCMP), Starwood Hotels (HOT), Helmerich & Payne (HP), Diamond Offshore (DO), Potash (POT), Cash America (CSH), Stanley Black & Decker (SWK), Aetna (AET), Time Warner Cable (TWC), VASCO Data Security (VDSI), Logitech (LOGI), NXP Semiconductors (NXPI), Northfield Bancorp (NFBK), TriState Capital (TSC), O'Reilly Automotive (ORLY), Teradyne (TER), Orrstown Financial (ORRF), PTC Inc. (PTC), Sun Bancorp (SNBC), Oceaneering (OII), Brookline Bancorp (BRKL), First Interstate (FIBK), Service Corp. (SCI), Eagle Bancorp (EGBN), CVB Financial (CVBF), Equifax (EFX), MKS Instruments (MKSI), Infinera (INFN), Callaway Golf (ELY), CoStar Group (CSGP), West Corp. (WSTC), Financial Institutions (FISI), Selective Insurance (SIGI), Lam Research (LRCX), Fortinet (FTNT), Apple (AAPL), Aspen Insurance (AHL), Tyler Technologies (TYL), Allied World (AWH), Flowserve (FLS), Exponent (EXPO), Hudson Technologies (HDSN), Ferro (FOE), E-Trade (ETFC), Assurant (AIZ), Symetra Financial (SYA), Everest Re (RE), Polycom (PLCM), Citrix (CTXS), Robert Half (RHI), F5 Networks (FFIV), TriQuint (TQNT), Allegiant Travel (ALGT), LSI Corp. (LSI), On Assignment (ASGN), Align Technology (ALGN), Oritani Financial (ORIT), Facebook (FB), Qualcomm (QCOM)
Companies that missed consensus earnings expectations include:
Invacare (IVC), PulteGroup (PHM), Dunkin' Brands (DNKN), Colfax (CFX), WESCO (WCC), Patterson-UTI Energy (PTEN), Safeguard Scientifics (SFE), CARBO Ceramics (CRR), Novartis (NVS), Old Second Bancorp (OSBC), The Bancorp (TBBK), TAL International (TAL), LPL Financial (LPLA), NewMarket (NEU), Morningstar (MORN), Graco (GGG), Kaiser Aluminum (KALU), Churchill Downs (CHDN), Susquehanna (SUSQ), Ingram Micro (IM), Xilinx (XLNX), Electro Scientific (ESIO), Cheesecake Factory (CAKE), Varian Medical (VAR), IPC The Hospitalist Co. (IPCM), Interface (TILE), ResMed (RMD), Famous Dave's (DAVE), Safeway (SWY), Fusion-io (FIO), SunCoke Energy (SXC), Monarch Casino (MCRI), Chicago Bridge & Iron (CBI), Texas Capital (TCBI), Greenhill & Co. (GHL), Datawatch (DWCH), United Stationers (USTR), Tractor Supply (TSCO), Stryker (SYK), Rocky Brands (rcky)
Companies that matched consensus earnings expectations include:
Eli Lilly (LLY), Sequans (SQNS), Core Laboratories (CLB), Blackhawk (HAWK), Innovative Solutions (ISSC), Angie's List (ANGI), Zynga (ZNGA), ServiceNow (NOW)
Pre Market Movers
Top Gaining Stocks
Price %Change
AET Aetna Inc. 77.90 13.05%
ZMH Zimmer Holdings I... 101.50 10.99%
ANGI Angie\'s List Inc... 14.20 10.76%
INFN Infinera Corporat... 9.69 9.86%
STC Stewart Informati... 34.99 9.65%
AAPL Apple Inc 569.68 8.56%
TQNT Triquint Semicond... 14.38 8.28%
ALXN Alexion Pharmaceu... 162.00 6.42%
FFIV F5 Networks Inc. ... 114.89 6.19%
NXPI Nxp Semiconductor... 63.98 5.72%
FTNT Fortinet Inc. 23.29 5.67%
RFMD RF Micro Devices ... 8.40 5.66%
UA Under Armour 57.30 5.25%
CTXS Citrix Systems In... 58.90 5.20%
AZN Astrazeneca Plc A... 71.28 5.16%
JDST Direxion Daily Jr... 23.90 4.96%
SLYV Spdr S&p 600 Smal... 112.61 4.94%
FB Facebook Inc. 64.39 4.94%
AAL American Airlines... 38.84 4.72%
GTAT GT Advanced Techn... 17.63 4.69%
Top Losing Stocks
Price %Change
TNP Tsakos Energy Nav... 7.27 -12.93%
EROC Eagle Rock Energy... 4.51 -7.01%
CLB Core Laboratories... 202.50 -5.24%
NUGT Direxion Daily Go... 35.35 -5.15%
TXN Texas Instruments... 44.13 -5.02%
SINA Sina Corporation ... 50.60 -5.01%
FTI Fmc Technologies ... 54.86 -5.00%
XLNX Xilinx Inc. 49.96 -4.69%
JNUG Direxion Daily Jr... 19.50 -4.32%
QCOM Qualcomm Inc. 77.50 -3.98%
AGIO Agios Pharmaceuti... 45.06 -2.76%
SIVR Etfs Silver Trust... 18.70 -2.40%
DNKN Dunkin\' Brands G... 46.50 -2.29%
MMM 3M Co. 135.02 -2.15%
RTN Raytheon Co. 98.12 -2.11%
TZA Direxion Daily Sm... 16.01 -2.08%
SSRI Silver Standard R... 9.72 -2.02%
SLV ishares Silver Tr... 18.33 -1.93%
PHM Pulte Group 18.25 -1.72%
GDX Market Vectors Et... 23.87 -1.65%
Read more at http://thestockmarketwatch.com/markets/pre-market/#QWRFJXfkC4GXMFXF.99
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futures +33
good morning
Sources: Starbucks is seeking 10% of #SodaStream at a company value of $1.1 billion - a 30% premium on the market price. $SODA
frontrunning:
Ukraine's leaders say have U.S. backing to take on 'aggressors' (Reuters)
Goldman Sachs Stands Firm as Banks Exit Commodity Trading (BBG)
Obama reassures Japan, other allies on China as Asia trip begins (Reuters)
China Challenges Obama’s Asia Pivot With Rapid Military Buildup (BBG)
Google’s Stake in $2 Billion Apple-Samsung Trial Revealed (BBG)
No bubble here: Numericable Set to Issue Record Junk Bond (WSJ)
'Bridgegate' scandal threatens next World Trade Center tower (Reuters)
Supreme Court Conflicted on Legality of Aereo Online Video Service (WSJ)
Barclays May Cut 7,500 at Investment Bank, Bernstein Says (BBG)
Wal-Mart’s Everyday Low Prices Fail to Stir Brazilians (BBG)
China factory activity shrinks for fourth month (Reuters)
Banker Bonus Probed in Denmark as Danske’s 200% Fuels Debate (BBG)
U.S. mortgage applications fell last week: MBA (Reuters)
Elizabeth Warren Book Hits Republicans While Going Easy on Clinton (BBG)
Overnight Media Digest
WSJ
* Pilots at JetBlue Airways Corp voted to unionize in an about-face that ended the carrier's status as one of the last nonunion airlines in the United States. Unionization "could result in demands that may increase our operating expenses and adversely affect our financial condition and results of operations," the airline said in the filing. (http://r.reuters.com/sez68v)
* A new flurry of drug deals shows how the global pharmaceutical industry is reversing course, as companies narrow their focus after decades of diversifying their drug portfolios. (http://r.reuters.com/xez68v)
* Supreme Court justices expressed unease with online-video startup Aereo but they also voiced concerns about the consequences of ruling for the broadcasters that are challenging the legality of the service. (http://r.reuters.com/fuz68v)
* Charter could acquire nearly four million extra subscribers in a two-stage deal under discussion with Comcast , in what would represent a consolation prize for Charter's nearly yearlong pursuit of Time Warner Cable. (http://r.reuters.com/muz68v)
* General Motors Co's global head of engineering is leaving the company and his duties are being split amid new fallout from the auto maker's internal probe over the delay in recalling 2.6 million vehicles with faulty ignition switches. (http://r.reuters.com/pyz68v)
* Newmont Mining Corp and Barrick Gold Corp have had continuing contact since the two miners last week broke off talks to create a global mining giant, according to people familiar with the situation. But their senior executives are unlikely to resume formal talks at least until after Newmont's annual general meeting on Wednesday. (http://r.reuters.com/nuz68v)
* A federal appeals court on Tuesday ordered a major health system in northwest Ohio to unwind its merger with a local hospital on antitrust grounds. The unanimous decision by a three-judge panel of the Sixth U.S. Circuit Court of Appeals in Cincinnati comes amid growing concerns about hospital mergers and their effect on prices against the backdrop of America's health-care upheaval. (http://r.reuters.com/kyz68v)
* Thailand's PTT Exploration & Production, the country's flagship petroleum explorer, will buy the Thai assets of Hess Corp for about $1 billion, in the latest of a string of sales by U.S. energy companies as they switch focus to unconventional oil and gas projects in North America. (http://r.reuters.com/myz68v)
FT
Ukraine's acting president ordered a fresh crackdown on pro-Russian forces in the east after two bodies were discovered with signs they had been tortured.
A multibillion-dollar asset swap between Novartis and GlaxoSmithKline has taken total global pharma deals so far this year to $140 billion, according to data from Dealogic.
Telecoms and cable operator Numericable will sell a record 8.5 billion euros of junk bonds on Wednesday to raise funds to buy SFR, France's second-biggest telecoms group.
The $35 billion merger of Publicis and Omnicom has hit an unforseen tax hurdle, threatening to torpedo plans to create the world's largest advertising and communications company by revenues.
A former Deutsche Bank facing trial in Japan for bribing a public official has admitted providing excessive entertainment to a pensions executive but alleged such conduct was 'institutional' at the bank.
Manchester United confirmed the departure of manager David Moyes, bringing an end to a shortlived and unhappy reign at the club.
NYT
* The United States Court of Appeals in Manhattan on Tuesday picked apart the government's case against two former hedge fund traders, Todd Newman and Anthony Chiasson, questioning whether the judge in the trial erred when instructing jurors. In an hour-long hearing, a three-judge panel hinted that it might overturn the convictions, the first real threat to Preet Bharara's sweeping campaign as a United States attorney to root out insider trading on Wall Street. (http://r.reuters.com/guz68v)
* After twice rejecting bids to unionize since 2009, JetBlue Airways pilots overwhelmingly agreed to be represented by the Air Line Pilots Association, the union said on Tuesday. (http://r.reuters.com/kuz68v)
* Comcast Corp is laying the groundwork to divest nearly four million subscribers as part of its efforts to appease antitrust regulators scrutinizing the proposed acquisition of Time Warner Cable Inc. In one likely situation, Charter Communications, which had been trying to acquire Time Warner Cable, would become both a buyer and partner to Comcast. (http://r.reuters.com/ruz68v)
* The Supreme Court signaled on Tuesday that it was struggling with two conflicting impulses in considering a request from television broadcasters to shut down Aereo, an Internet start-up they say threatens the economic viability of their businesses. (http://r.reuters.com/vuz68v)
* The pharmaceutical industry is regaining its swagger, as companies turn to big and sometimes daring deals to expand and reshape their operations. On Tuesday alone, pharmaceutical companies announced $74 billion worth of potential deals, including an unorthodox $45.6 billion bid for Allergan Inc , the maker of Botox, and a flurry of swaps and sales between Novartis AG of Switzerland and GlaxoSmithKline Plc of Britain. (http://r.reuters.com/zuz68v)
* General Motors Co moved on Tuesday to prevent future safety lapses by expanding its oversight of problematic vehicles even as the automaker continued to take an aggressive legal posture in dealing with its past missteps. General Motors has asked a federal bankruptcy judge to dismiss dozens of potentially costly lawsuits filed against the company over its handling of a defective ignition switch in millions of cars, and to bar similar cases in the future. (http://r.reuters.com/byz68v)
Canada
THE GLOBE AND MAIL
* A Calgary judge has ordered the suspect in the city's worst mass killing to undergo a 30-day psychological assessment to determine if he is fit to stand trial for the stabbings that cut short five lives at an end-of-school celebration. (http://r.reuters.com/hac78v)
* Canada's food safety system is being pushed beyond its limits, warns the union representing federal food inspectors, which singles out Vancouver-area consumers as potentially the most at risk. (http://r.reuters.com/ryb78v)
Reports in the business section:
* Canada's middle class appears to be the richest in a new study of incomes in several big countries. The in-depth report which looks at about 20 nations, indicates that Canadians have bumped Americans out of the top spot they have long held. (http://r.reuters.com/qaz68v)
NATIONAL POST
* Ontario's Progressive Conservative Party leader Tim Hudak says he's hopeful that the Liberal victory in Quebec could mean a Tory victory in Ontario. Ontario could be going to the polls this spring if the minority Liberals cannot get at least one of the opposition parties to support their May 1 budget. The Tories have been itching for an election and have nominated candidates in 99 of the province's 107 ridings. (http://r.reuters.com/mac78v)
* Ottawa no longer considers the North Pacific population of humpback whales a threatened species, which lifts many legal protections for the whales' habitat. In an amendment released on Saturday in the latest Canada Gazette, the Environment Department says the status of humpback whales off the British Columbia coast has been upgraded from "threatened" to "species of special concern." (http://r.reuters.com/bec78v)
FINANCIAL POST
* Far from giving up on the Keystone XL pipeline to the United States, Finance Minister Joe Oliver said on Tuesday Canada would keep the issue alive with the Obama administration despite a further delay of the U.S. decision on whether to approve it. (http://r.reuters.com/hec78v)
* Botox-maker Allergan Inc facing a hostile takeover play from the formidable duo of acquisition-hungry Valeant Pharmaceuticals International Inc and activist investor Bill Ackman, could still see a Big Pharma white knight step in but the odds are stacked against it, analysts say. (http://r.reuters.com/dec78v)
China
CHINA SECURITIES JOURNAL
- China's government will create a 120-billion-yuan ($19.24 billion) fund to support integrated circuit industry, sources told the newspaper.
- China's domestic tax revenue declined by 37.5 billion yuan in the first quarter of 2014 after China moved from a business tax model to a value-added tax policy.
SHANGHAI SECURITIES NEWS
- Chinese healthcare-focused funds were one of the most popular funds in the first quarter of the year, according to data from China's TX Investment Consulting, as China looks to provide medical services to its near 1.4 billion population.
CHINA BUSINESS NEWS
- China is considering easing house purchase restrictions in some second and third-tier cities, although this is not a possibility for first-tier cities, said Zhu Baoliang, a department head at China's State Information Center.
CHINA DAILY
- Chinese authorities in the restive northwest region of Xinjiang have seized hundreds of replica firearms in a crackdown on guns and explosives, local police told the paper.
- Retail sales in China are expected to grow 13 percent this year, according to a government think tank, roughly flat with 2013. Retail sales hit 23.4 trillion yuan last year, the Chinese Academy of International Trade and Economic Cooperation said.
SHANGHAI DAILY
- Chinese cabbies face having their cabs seized if they operate without a license, according to a new regulation from the Shanghai People's Congress. Under existing rules drivers are given a fine or have points taken from their license.
Britain
The Times
DRUGS STOCKS SOAR AS GLAXO BETS THE PHARMA ON NOVARTIS DEAL
A blizzard of deals in the pharmaceuticals industry sent drugs stocks flying as GlaxoSmithKline conducted a complex asset swap with Novartis, of Switzerland, and AstraZeneca shored up its defences against a possible American takeover.
JJB FRAUD TRIAL ABANDONED DUE TO SIR DAVID JONES' ILL HEALTH
The fraud trial of the former executive chairman of JJB Sports has been 'abandoned for the time being', owing to his ill health.
The Guardian
VINCE CABLE TELLS TOP UK FIRMS: CRACK DOWN ON BONUSES OR FACE NEW LAWS Business secretary urges companies to rethink pay deals to regain public trust and move focus off short-term success.
TESCO LAUNCHES FRESH ROUND OF PRICE CUTS Market leader to also offer free click-and-collect grocery orders as it inches toward Asda's "everyday low price" model.
The Telegraph
QUINDELL SHARES CRASH 50 PCT ON DAMNING GOTHAM NOTE Insurance outsourcer Quindell's shares plunge after Gotham Research calls it a "country club built on sand."
Sky News
BARCLAYS PAY PLANS RECEIVE MIXED CITY VERDICT
Barclays will this week suffer a sizeable City rebellion over its decision to hike bonuses last year while simultaneously receiving overwhelming shareholder backing for its future pay plans.
Fly On The Wall 7:00 AM Market Snapshot
ECONOMIC REPORTS
Domestic economic reports scheduled today include:
Markit flash manufacturing PMI for April at 9:45--consensus 56.0
New home sales for March at 10:00--consensus up 2.3% to 450K
ANALYST RESEARCH
Upgrades
A.O. Smith (AOS) upgraded to Outperform from Market Perform at BMO Capital
AK Steel (AKS) upgraded to Outperform from Neutral at Macquarie
Agnico-Eagle (AEM) upgraded to Outperform from Sector Perform at RBC Capital
Allergan (AGN) upgraded to Overweight from Neutral at JPMorgan
athenahealth (ATHN) upgraded to Overweight from Equal Weight at Morgan Stanley
E-Trade (ETFC) upgraded to Outperform from Market Perform at Wells Fargo
Equifax (EFX) upgraded to Outperform from Neutral at Credit Suisse
Fluidigm (FLDM) upgraded to Buy from Neutral at Mizuho
Hanmi Financial (HAFC) upgraded to Outperform from Market Perform at Fig Partners
Lumber Liquidators (LL) upgraded to Buy from Neutral at Longbow
Medidata Solutions (MDSO) upgraded to Buy from Neutral at B. Riley
Prologis (PLD) upgraded to Buy from Neutral at ISI Group
SunPower (SPWR) upgraded to Buy from Underperform at BofA/Merrill
TECO Energy (TE) upgraded to Neutral from Sell at UBS
Downgrades
Brown & Brown (BRO) downgraded to Neutral from Buy at Compass Point
CTC Media (CTCM) downgraded to Underperform from Neutral at Credit Suisse
Grupo Televisa (TV) downgraded to Underperform from Neutral at BofA/Merrill
Philips (PHG) downgraded to Sector Perform from Outperform at RBC Capital
Quality Systems (QSII) downgraded to Underweight from Equal Weight at Morgan Stanley
Rexnord (RXN) downgraded to Underperform from Neutral at BofA/Merrill
Tata Motors (TTM) downgraded to Neutral from Outperform at Credit Suisse
Initiations
Ball Corp. (BLL) initiated with a Neutral at JPMorgan
Central Valley Community Bancorp (CVCY) initiated with an Outperform at Fig Partners
Crown Holdings (CCK) initiated with an Overweight at JPMorgan
First Cash Financial (FCFS) initiated with an Overweight at HSBC
Harman (HAR) initiated with an Outperform at RBC Capital
Interval Leisure (IILG) initiated with an Outperform at Imperial Capital
Kroger (KR) initiated with a Market Perform at Wells Fargo
Manulife Financial (MFC) initiated with a Buy at UBS
Occidental Petroleum (OXY) initiated with a Neutral at Global Hunter
Owens-Illinois (OI) initiated with a Neutral at JPMorgan
Sun Life Financial (SLF) initiated with a Buy at UBS
TPG Specialty Lending (TSLX) initiated with a Neutral at Citigroup
UGI Corporation (UGI) initiated with an Equalweight at Barclays
WhiteWave Foods (WWAV) initiated with a Buy at Deutsche Bank
COMPANY NEWS
PTTEP said it will buy Hess Corp.'s (HES) Thailand assets for $1B
BP (BP) agreed to sell interests in four Alaska North Slope assets
Polaris Industries (PII) said 'on track' to generate over $4B in annualized sales
Allergan (AGN) adopted a one-year stockholder rights plan (VRX)
AT&T (T) forecast FY14 earnings growth in the mid-single digit range. The company said it had best revenue growth in more than two years during Q1
Yum! Brands (YUM) reported Q1 SSS growth of 9% for its China division, with total sales for its China division growing 17% for the quarter
Icahn reiterated that he hasn't sold a share of Apple (AAPL)
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Prosperity Bancshares (PB), TE Connectivity (TEL), JAKKS Pacific (JAKK), W.R. Grace (GRA), Polaris Industries (PII), Thermo Fisher (TMO), BE Aerospace (BEAV), Ethan Allen (ETH), Valmont (VMI), Renasant (RNST), Southwest Bancorp (OKSB), Fulton Financial (FULT), Skyworks (SWKS), Xoom (XOOM), ViewPoint Financial (VPFG), Community Bank System (CBU), Trustmark (TRMK), WesBanco (WSBC), IDEX Corp. (IEX), W. R. Berkley (WRB), Sanmina (SANM), Preferred Bank (PFBC), Super Micro Computer (SMCI), Illumina (ILMN), International Game (IGT), iRobot (IRBT), Discover (DFS), C.R. Bard (BCR), Skechers (SKX), Woodward (WWD), FMC Technologies (FTI), Covanta (CVA), Manhattan Associates (MANH), Gilead (GILD), Hawaiian Holdings (HA), Torchmark (TMK), Cree (CREE), Cubist (CBST), VMware (VMW), AT&T (T)
Companies that missed consensus earnings expectations include:
CBIZ, Inc. (CBZ), Pacific Premier (PPBI), Air Products (APD), Flagstar Bancorp (FBC), MSA (MSA), First Midwest (FMBI), Unisys (UIS), Orchids Paper (TIS), Vascular Solutions (VASC), Total System (TSS), Pzena Investment (PZN), Bridge Capital Holdings (BBNK), Amgen (AMGN), Ameris Bancorp (ABCB)
Companies that matched consensus earnings expectations include:
MarketAxess (MKTX), Praxair (PX), First Busey (BUSE), Zhone (ZHNE), ZixCorp (ZIXI), Harmonic (HLIT), Juniper (JNPR)
NEWSPAPERS/WEBSITES
DISH (DISH) to launch internet-TV service this summer, Bloomberg says
Wal-Mart (WMT) to report how compliance targets impacted executive pay, WSJ reports
Charter (CHTR) close to adding 4M subscribers in deal with Comcast (CMCSA), WSJ reports
Ackman paying Herbalife (HLF) whistleblower, ABC News says
Netflix (NFLX) expanding to France by year-end, Bloomberg says
Barrick Gold's (ABX) Munk says merger with Newmont Mining (NEM) 'inevitable', WSJ reports
Ford (F) CEO said to position board post after retiring, Bloomberg says
Intel (INTC) to launch Bay Trail-Entry to tap entry-level tablet market, DigiTimes says
SYNDICATE
Hannon Armstrong (HASI) files to sell 5M shares of common stock
Intercloud Systems (ICLD) files to sell 1.71M shares of common stock for holders
Medley Capital (MCC) files to sell 6M shares of common stock
New Source Energy (NSLP) files to sell 2.8M common units for limited partners
Plug Power (PLUG) files to sell common stock
Sarepta (SRPT) files to sell $100M of common stock
Average:
0
Your rating: None
Pre Market Movers
Top Gaining Stocks
Price %Change
ILMN Illumina Inc. 163.48 10.47%
ANV Allied Nevada Gol... 3.80 6.44%
RMTI Rockwell Medical ... 11.10 5.11%
JO ipath Dj-ubs Coff... 44.57 4.65%
SPWR Sunpower Corporat... 30.72 4.60%
ATHN athenahealth Inc.... 139.93 4.33%
GILD Gilead Sciences I... 76.00 4.31%
OGXI Oncogenex Pharmac... 10.80 4.15%
HERO Hercules Offshore... 4.60 3.37%
YUM Yum! Brands Inc. ... 80.00 3.25%
BA Boeing Co. 131.20 2.86%
DAL Delta Air Lines 35.89 2.69%
TAXI Medallion Financi... 13.50 2.58%
RGSE Real Goods Solar ... 3.25 2.52%
YELP Yelp 70.00 2.47%
ARTX Arotech Corporati... 3.80 2.43%
XRT Spdr S&p Retail E... 84.99 2.16%
CETV Central European ... 2.76 1.85%
YNDX Yandex N.v. 29.57 1.75%
EIX Edison Internatio... 57.19 1.65%
Top Losing Stocks
Price %Change
PLUG Plug Power Inc. 6.03 -10.00%
ISRG Intuitive Surgica... 383.00 -9.31%
CHK Chesapeake Energy... 25.93 -8.89%
CREE Cree Inc. 53.75 -7.41%
ZHNE Zhone Technologie... 3.89 -6.49%
LIVE Livedeal Inc. 4.51 -6.04%
DE Deere & Co. 88.05 -5.67%
PBS Powershares Etf T... 23.56 -4.07%
SRPT Sarepta Therapeut... 37.29 -3.87%
ARMH Arm Holdings Plc ... 48.29 -3.63%
ERIC Ericsson Adr 12.53 -3.62%
FCEL Fuelcell Energy I... 2.46 -3.15%
MCC Medley Capital Co... 13.12 -3.10%
USU Usec Inc. 3.40 -2.76%
T At&t 35.45 -2.31%
BLDP Ballard Power Sys... 3.87 -2.27%
CHL China Mobile Ads ... 45.35 -2.18%
AIXG Aixtron SE 15.79 -2.05%
EMC Emc Corp. 26.22 -2.02%
IGT International Gam... 13.80 -1.92%
Read more at http://thestockmarketwatch.com/markets/pre-market/#hwvuHtobw8cK1wtv.99
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MBA Purchase Applications
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good morning
Frontrunning:
Ukraine Accord Nears Collapse as Biden Meets Kiev Leaders (BBG)
Novartis reshapes business via deals with GSK and Lilly (Reuters)
Moscow Bankers See Fees Slide 67% as Ukraine Crisis Grows (BBG)
Why ECB's QE will be Ukraine's fault: Draghi Gauges Ukraine Effect as ECB Tackles Low Inflation (BBG)
As Phone Subsidies Fade, Apple Could Be Hurt (WSJ)
Amazon Sales Take a Hit in States With Online Tax (BBG)
Ford Speeds Up Succession Plan: Mark Fields, Auto Maker's No. 2, Seen Replacing Alan Mulally as CEO Ahead of Schedule (WSJ)
U.S. force in Afghanistan may be cut to less than 10,000 troops (Reuters)
IBM End to Buyback Splurge Pressures CEO to Boost Revenue (BBG)
Netflix Calls Out AT&T for Subpar Streaming Performance (BBG)
GPIF Shakes Up Committee With Three Abe Panel Members (BBG)
First sign of South Korea ferry disaster was call from a frightened boy (Reuters)
Overnight Media Digest
WSJ
* Activist investor William Ackman and Valeant Pharmaceuticals International Inc are seeking to acquire Allergan Inc, according to a filing on Monday with the Securities and Exchange Commission. The deal, if successful, would create a behemoth in the global eye-care and skin-care drug industries. Each company has a stock-market capitalization of more than $40 billion. (http://r.reuters.com/was68v)
* Ford Motor Co Chief Executive Alan Mulally will leave the company earlier than expected after a more than seven-year run in which he oversaw a significant expansion of the U.S. automaker, people familiar with the matter said. Mulally's successor will be Mark Fields, a Ford veteran who survived management turmoil in the years before Mulally's 2006 arrival. (http://r.reuters.com/vas68v)
* Facebook Inc is planning a mobile-ad network that will allow the company to tap its vast reservoir of data about users to help marketers target ads on other services. The network, which has been in the works for years, is set to be announced at Facebook's F8 conference at the end of the month.(http://r.reuters.com/tas68v)
* A Texas group sued the Federal Aviation Administration in federal court to challenge the agency's order to stop using drones in the group's searches for missing people, the latest round in an intensifying battle over regulation of the sector. (http://r.reuters.com/xas68v)
* For years, equities had taken a back seat to the bigger and often more-profitable business of buying and selling fixed-income securities and commodities. But as those units are squeezed by new regulation and uncooperative markets, banks are putting more muscle behind catering to the trading needs of equity investors. (http://r.reuters.com/zas68v)
* Tuesday Morning Corp and its former chief executive settled a discrimination lawsuit that alleged she was fired after developing breast cancer. Kathleen Mason, the head of the home-furnishings closeout retailer, was ousted in June 2012 after a 12-year run during which the company's stock fell nearly 60 percent. (http://r.reuters.com/ces68v)
* U.S. wireless carriers are making unexpectedly fast progress moving their customers away from subsidized phones, a shift that could put further pressure on sales of expensive devices like Apple Inc's iPhone. (http://r.reuters.com/des68v)
* Netflix Inc will raise the price of its streaming service for new members by a dollar or two a month, it said on Monday. It also said that it now has more than 34 million paid subscribers in the U.S. (http://r.reuters.com/ges68v)
FT
Fears of a conflict between pro-Kiev and secessionist forces were stoked after Russia's foreign minister vowed to put an end to the unrest in eastern Ukraine on Monday.
U.S. shares in Britain's AstraZeneca jumped on Monday after media reports revealed that Pfizer had made a tentative $100 billion takeover approach.
The Bank of England will oversee an ethical hacking programme of 20 major banks and other financial institutions in the UK to test the resilience of their computer systems.
Britain's Barclays, one of the world's biggest commodities traders, is looking to exit parts of its metals, agricultural and energy business in a move expected to be announced this week.
Microsoft said on Monday it had completed the steps necessary to finalise the purchase of Nokia's devices and services business though it made a few changes to the original terms of the 5.4 billion euro deal agreed last year.
Listed property firms in the UK are selling riskier assets and consolidating their borrowings as demand from overseas investors push property prices higher.
NYT
* Ford Motor Co has picked Mark Fields, its chief operating officer, to succeed Alan R. Mulally as the next chief executive of the company, according to a person with knowledge of the move. The selection of Fields would hasten the retirement of Mulally, who has said previously that he would stay as chief executive of Ford through the end of this year. (http://r.reuters.com/zes68v)
* Activist investor William A. Ackman, among the brashest men on Wall Street, made perhaps the boldest move yet for an activist. By teaming up with Valeant Pharmaceuticals International Inc, a big health care company, and offering to buy Allergan Inc, the maker of Botox, for roughly $50 billion. (http://r.reuters.com/bus68v)
* Investment banks, which rushed into the new territory of physical commodities starting at the turn of the century, are now beating a retreat. The latest bank expected to make an exit is Barclays Plc, which plans to announce on Tuesday that it will get out of large parts of its commodities business, according to a person briefed on the British bank's plans. (http://r.reuters.com/fus68v)
* Netflix Inc on Monday voiced strong opposition to Comcast Corp's planned $45 billion takeover of Time Warner Cable Inc, even while confirming that it was raising subscription prices. (http://r.reuters.com/gus68v)
* The U.S. Supreme Court on Monday seemed inclined to offer at least modest help to Argentina's creditors. The issue before the justices was in some ways a minor one, and they will soon decide whether to hear a second and more significant case arising from Argentina's 2001 default on billions of dollars of debt. (http://r.reuters.com/hus68v)
Canada
THE GLOBE AND MAIL
* Herb Gray, a former deputy prime minister and one of Canada's longest-serving parliamentarians, died on Monday at the age of 82. (http://r.reuters.com/gat68v)
* Air Canada has suspended two employees seen in a video dropping passengers' carry-on baggage into a bin several metres below at Toronto's Pearson International Airport. (http://r.reuters.com/jat68v)
Reports in the business section:
* Activist investor Bill Ackman is teaming up with Canada-based drug maker Valeant Pharmaceuticals International Inc to make a multi-billion dollar bid for California eye and skin care company Allergan Inc. (http://r.reuters.com/mat68v)
NATIONAL POST
* The Canadian Prime Minister's Office coughed up C$4.1 million ($3.7 million) in severance and separation pay over the first seven years of Stephen Harper's tenure for 196 departing PMO employees, according to government documents. (http://r.reuters.com/gut68v)
* With Victoria set to ban virtually all forms of public smoking, city councillors in the British Columbia capital are mulling the creation of small patches of neutral ground in which the region's 30,000 or so smokers could "kill themselves in peace" without breaking the law. (http://r.reuters.com/kut68v)
FINANCIAL POST
* Retreat and cut your losses, or carry on fighting. Those are the choices facing TransCanada Corp after the United States government's non-decision to put the Keystone XL pipeline on hold, yet again, possibly until next year, perhaps indefinitely. (http://r.reuters.com/dut68v)
* Rogers Communications Inc's new Chief Executive Guy Laurence still won't go into detail on his strategy to reboot growth at the company, but he is now hinting that it will hinge on getting all of the company's telecom and media assets to work better together. (http://r.reuters.com/put68v)
China
CHINA SECURITIES JOURNAL
- The China Banking Regulatory Commission (CBRC) has launched a research process into the regulation of Peer-to-Peer (P2P) credit channel to achieve better risk management, capital pooling is to be forbidden.
- As of the first quarter of 2014, the 1,917 funds run by 81 fund management companies have lost a sum of 65.8 billion yuan ($10.57 billion), according to data pooled by TX Investment Consulting Co. Ltd, a fund research company.
SHANGHAI SECURITIES NEWS
- The draft version of China's Environment Protection Law has been submitted to the Standing Committee of the National People's Congress, sources said, with more regulation to fight against air pollution and breakthrough in information disclosure mechanism to be expected.
CHINA DAILY
- More police armed with handguns are being deployed nationwide to conduct regular patrols on the streets amid rising concerns over public security, the Ministry of Public Security said on Monday. "The presence of armed police will enable immediate responses to emergencies and effectively combat violent crimes," said Yan Zhengbin, deputy director of the ministry's public security management bureau.
SHANGHAI DAILY
- A draft version of China's Criminal Law has been submitted to the top legislature, aiming to clearly define that eating endangered animals, or buying them for that or any other purpose, is illegal, sources said.
PEOPLE'S DAILY
- China's cabinet is going to authorise 7 supervision teams to 14 local governments to facilitate supporting policies for the development of small- and medium-sized enterprises.
Britain
The Telegraph
ASTRAZENECA BRINGS IN WALL STREET 'DEFENDERS' AMID PFIZER BID SPECULATION Goldman Sachs and Morgan Stanley are understood to have been hired by AstraZeneca amid speculation the drug maker could receive a new approach from Pfizer.
FORMULA ONE PROFITS STUCK IN THE SLOW LANE Profits of the motor racing series controlled by private equity firm CVC fell by $137 million last year, driven by accelerating payments under a new deal with the sport's 11 teams.
The Times
LET HOUSEHOLDS SHARE 250 MLN STG ENERGY WINDFALL, BIG SIX TOLD
Britain's six big energy companies have been urged to hand back at least 245 million pounds to consumers after it emerged that they will spend less than expected on a household insulation scheme.
36 BLN STG REBUILDING SCHEMES TO BEGIN
More than 200 projects to rebuild Britain by improving the roads and rail network, broadband coverage and flood defences will begin this year, David Cameron and George Osborne will reveal on Tuesday.
The Guardian
SCOTTISH INDEPENDENCE: GORDON BROWN WARNS OF PENSIONS 'TIMEBOMB' Ex-prime minister enters increasingly tight battle over independence as 'yes' campaign gains momentum.
BARCLAYS TO SELL ITS COMMODITIES TRADING TO FOCUS ON BANKING ARM The announcement comes before bosses face a storm of protests at the bank's annual general meeting.
Fly On The Wall 7:00 AM Market Snapshot
ECONOMIC REPORTS
Domestic economic reports scheduled today include:
FHFA house price index for February at 9:00--consensus up 0.5% for the month
Existing home sales for March at 10:00--consensus down 1% to 4.56M rate
Richmond Fed manufacturing index for April at 10:00--consensus 2
ANALYST RESEARCH
Upgrades
AstraZeneca (AZN) upgraded to Buy from Neutral at Citigroup
athenahealth (ATHN) upgraded to Buy from Neutral at SunTrust
Barrick Gold (ABX) upgraded to Buy from Neutral at Goldman
FX Energy (FXEN) upgraded to Outperform from In-Line at Imperial Capital
Facebook (FB) upgraded to Outperform from Neutral at Credit Suisse
Fidelity Southern (LION) upgraded to Outperform from Market Perform at Keefe Bruyette
Fiesta Restaurant (FRGI) upgraded to Strong Buy from Outperform at Raymond James
First Financial (FFIN) upgraded to Neutral from Underperform at Macquarie
Home Depot (HD) upgraded to Outperform from Market Perform at BMO Capital
Intuit (INTU) upgraded to Equal Weight from Underweight at Evercore
KT Corporation (KT) upgraded to Outperform from Neutral at Macquarie
Lennox (LII) upgraded to Buy from Neutral at MKM Partners
Main Street (MAIN) upgraded to Outperform from Market Perform at Raymond James
Modine Manufacturing (MOD) upgraded to Outperform from Neutral at RW Baird
National Bank of Greece (NBG) upgraded to Neutral from Underperform at BofA/Merrill
Netflix (NFLX) upgraded to Buy from Hold at Cantor
Netflix (NFLX) upgraded to Outperform from Market Perform at Raymond James
Norwegian Cruise Line (NCLH) upgraded to Buy from Neutral at Goldman
Ruth's Hospitality (RUTH) upgraded to Outperform from Market Perform at Raymond James
Sinopec (SNP) upgraded to Neutral from Underperform at BofA/Merrill
Summit Midstream (SMLP) upgraded to Buy from Neutral at Goldman
Downgrades
CommonWealth REIT (CWH) downgraded to Sell from Hold at Stifel
Del Frisco's (DFRG) downgraded to Market Perform from Outperform at Raymond James
Deutsche Bank (DB) downgraded to Neutral from Buy at UBS
Fidelity & Guaranty Life (FGL) downgraded to Neutral from Outperform at Credit Suisse
QEP Resources (QEP) downgraded to Equalweight from Overweight at Barclays
Wisconsin Energy (WEC) downgraded to Fair Value from Buy at CRT Capital
Zillow (Z) downgraded to Fair Value from Buy at CRT Capital
Zions Bancorp (ZION) downgraded to Equal Weight from Overweight at Evercore
Initiations
2U (TWOU) initiated with a Buy at Goldman
Aerohive Networks (HIVE) initiated with a Buy at Goldman
Aerohive Networks (HIVE) initiated with an Overweight at Piper Jaffray
Akorn (AKRX) initiated with a Buy at Jefferies
Anacor (ANAC) initiated with a Buy at Jefferies
Buenaventura (BVN) initiated with a Neutral at Goldman
Everyday Health (EVDY) initiated with a Buy at Stifel
First Solar (FSLR) initiated with a Buy at Brean Capital
Franco-Nevada (FNV) initiated with a Neutral at Goldman
GSV Capital (GSVC) initiated with a Buy at Roth Capital
GW Pharmaceuticals (GWPH) initiated with an Overweight at Morgan Stanley
Glori Energy (GLRI) initiated with an Outperform at RW Baird
Immersion (IMMR) initiated with a Buy at B. Riley
Magna (MGA) initiated with a Neutral at UBS
Perrigo (PRGO) initiated with a Buy at Jefferies
Salix (SLXP) initiated with a Buy at Jefferies
SunEdison (SUNE) initiated with a Hold at Brean Capital
SunPower (SPWR) initiated with a Buy at Brean Capital
Supernus (SUPN) initiated with a Hold at Jefferies
Synaptics (SYNA) initiated with a Buy at Sterne Agee
Varonis (VRNS) initiated with an Outperform at Imperial Capital
XenoPort (XNPT) initiated with a Buy at Jefferies
COMPANY NEWS
Eli Lilly (LLY) said it will acquire Novartis Animal Health (NVS) for $5.4B in all-cash transaction
Novartis (NVS) said it will divest Vaccines business to GSK (GSK) for $7.1B and said it will acquire GSK's oncology products for $14.5B
Novartis (NVS), GSK Consumer Healthcare (GSK) formed a joint venture
Valeant (VRX) said in a filing that it intends to propose merger with Allergan (AGN); Allergan said it will evaluate any offer, if received, from Valeant and Pershing Square
Netflix (NFLX) said it opposes Comcast (CMCSA)-Time Warner Cable (TWC) deal
Netflix (NFLX) said it sees adding $1-$2 per month for new subscribers
Manchester United (MANU) said David Moyes has left as manager
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
BNY Mellon (BK), Potlatch (PCH), Regions Financial (RF), Carlisle (CSL), Signature Bank (SBNY), TAL Education (XRS), Western Alliance (WAL), Great Southern Bancorp (GSBC), GulfMark Offshore (GLF), Helix Energy (HLX), Rush Enterprises (RUSHA), First Defiance Financial (FDEF), Celanese (CE), Rent-A-Center (RCII), Customers Bancorp (CUBI), Cadence Design (CDNS), Matthews (MATW), Hexcel (HXL), Bank of Hawaii (BOH), Rambus (RMBS), PLX Technology (PLXT), Waste Connections (WCN), Banner Corp. (BANR), Netflix (NFLX), Exactech (EXAC)
Companies that missed consensus earnings expectations include:
Teck Resources (TCK), Brown & Brown (BRO), Healthstream (HSTM), Werner (WERN), Glacier Bancorp (GBCI), Zions Bancorp (ZION), Wilshire Bancorp (WIBC), Umpqua Holdings (UMPQ), Forward Air (FWRD)
Companies that matched consensus earnings expectations include:
Mercantile Bank (MBWM), BancorpSouth (BXS)
NEWSPAPERS/WEBSITES
Ackman, Valeant (VRX) team up on Allergan (AGN) bid, WSJ reports
Barclays (BCS) to exit parts of commodities business, NY Times says
Citigroup (C) looks to sell about 50 branches in California, Bloomberg reports
Investment banks (MS, C, USB, WFC, JPM, GS, BAC) battling over stock trading, WSJ reports
Companies with cloud businesses (GOOG, AMZN, RAX) worried about Aereo case, Re/code says
GlaxoSmithKline (GSK) says Novartis (NVS) deal could lead to more disposals, Reuters reports
Novartis (NVS) CEO says bolt-on acquisitions still possible, Reuters reports
SYNDICATE
Agios Pharmaceuticals (AGIO) files to sell 2M shares of common stock
Allison Transmission (ALSN) files to sell 25M shares for holders
FireEye (FEYE) files to sell 13.3M shares of common stock for holders
ePlus (PLUS) files to sell 1.79M shares of common for holders
Average:
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Happy Birthday pal! I hope you had a good one!!!!
36 right!!!
I bet you are glad tax season is over. I am....saw that cashed the check last week.....sheesh!
Pre Market Movers
Top Gaining Stocks
Price %Change
AGN Allergan Inc. 168.50 18.66%
HP Helmerich & Payne... 125.47 10.91%
VRX Valeant Pharmaceu... 137.79 9.35%
GWPH GW Pharmaceutical... 49.51 7.54%
NFLX Netflix Inc. 373.80 7.26%
HOG Harley-davidson I... 72.00 6.60%
SPNC Spectranetics Cor... 26.02 6.16%
WMGI Wright Medical Gr... 30.79 5.01%
GSK Glaxosmithkline P... 55.49 4.46%
CETV Central European ... 2.80 3.70%
GSVC Gsv Capital Corp.... 10.00 3.31%
SRPT Sarepta Therapeut... 35.00 3.00%
CSIQ Canadian Solar In... 27.85 2.84%
WB Weibo Corp Adr (s... 23.23 2.74%
RKUS Ruckus Wireless 10.65 2.70%
CNHI Cnh Industrial N.... 11.22 2.53%
AINV Apollo Investment... 8.31 2.34%
LMT Lockheed Martin C... 165.00 2.17%
VALE Vale SA 14.09 2.10%
KOG Kodiak Oil & Gas ... 13.77 2.08%
Top Losing Stocks
Price %Change
ARTX Arotech Corporati... 4.05 -9.19%
XRX Xerox Corp. 10.53 -8.20%
PHG Koninklijke Phili... 32.01 -7.46%
COG Cabot Oil & Gas C... 32.98 -6.09%
WIT Wipro Ltd. Ads 12.50 -4.94%
CPLP Capital Product P... 10.50 -4.37%
HAL Halliburton Co. 60.51 -3.83%
ALSN Allison Transmiss... 29.94 -3.79%
LLY Eli Lilly & Co. 59.00 -3.06%
PLUG Plug Power Inc. 6.87 -2.00%
AZN Astrazeneca Plc A... 67.82 -1.85%
SNE Sony Corp. Ads 18.71 -1.53%
FEYE Fireeye Inc 47.45 -1.43%
SDRL Seadrill Ltd. 32.68 -1.27%
INFY Infosys Limited A... 52.01 -0.93%
TNA Direxion Daily Sm... 71.20 -0.81%
KMDA Kamada Ltd. 14.42 -0.62%
VLO Valero Energy Cor... 55.87 -0.62%
SCTY Solarcity Corpora... 56.83 -0.53%
PSO Pearson Plc Ads 17.86 -0.50%
Read more at http://thestockmarketwatch.com/markets/pre-market/#IDyTQqXvmq2vuX01.99
data:
ICSC-Goldman Store Sales
[Report][Bullet7:45 AM ET
Redbook
[Bullet8:55 AM ET
FHFA House Price Index
[Report][Bullet9:00 AM ET
Existing Home Sales
[Report][Star]10:00 AM ET
Richmond Fed Manufacturing Index
[Report][Bullet10:00 AM ET
4-Week Bill Auction
[Bullet11:30 AM ET
2-Yr Note Auction
[Bullet1:00 PM ET
Futures +2
good morning