British PM begs Scots: Don't rip apart our UK 'family of nations' (Reuters) Obama has become Bush: Obama’s Task: Rally U.S. Public, Allies in Terror Fight (BBG) Alibaba's record IPO covered after first few roadshow meetings (Reuters) Ferrari chairman Luca Di Montezemolo to quit after 23 years (BBC) Combat Reversals Pressure Assad (WSJ) Top LBO Fund Investors Pile on Leverage to Boost Returns (BBG) BOJ's Iwata upbeat on economy, unfazed by post-tax hike slump (Reuters) Carney Can’t Escape Housing as Debt Colors BOE Policy (BBG) Detroit Clears Crucial Hurdle on Bankruptcy (NYT) Kerry in Iraq to back government, build support against Islamic State (Reuters) Ahead of speech, Obama briefs Congress on Islamic State strategy (Reuters) Microsoft Near Deal to Buy Minecraft Maker Mojang (WSJ) Intel's CEO says its costly tablet chip strategy has paid off (Reuters) Lower Manhattan Revival Nears Culmination After 13 Years (BBG) The Curious Case of an 'Oxford' Man (WSJ) Dollar General Launches Tender Offer for Family Dollar Shares (WSJ)
Overnight Media Digest
WSJ
* Syrian President Bashar al-Assad, who four months ago seemed on the verge of defeating rebel forces, is now mired in defensive battles on several fronts, complicating efforts to fight the Islamic State militant group. (http://on.wsj.com/1wfBolG)
* Apple Inc was not the first company to make a smartphone or a tablet computer. But its iPhone and iPad redefined those products. Now, Apple is betting that it again can succeed where others have struggled. Apple Chief Executive Tim Cook Tuesday introduced a new payments system for mobile devices, a series of smartwatches and a pair of larger iPhones. The new digital-payments service, Apple Pay, will let users buy merchandise simply by waving a newer iPhone or Apple Watch in front of a reader. Apple said it hopes to speed up the checkout process and, ultimately, to replace physical wallets. (http://on.wsj.com/1tJguxj)
* Microsoft Corp is in serious discussions to buy Mojang AB, the Swedish company behind the popular "Minecraft" video game, according to a person with knowledge of the matter. (http://on.wsj.com/1qDItMf)
* Dollar General Corp plans to take its $9 billion offer to buy Family Dollar Inc directly to its rival's shareholders Wednesday, in an attempt to pull off a hostile takeover after its offer was rejected by its target's board. (http://on.wsj.com/1p53V7O)
* A nationwide showdown between activists and universities over investments in coal, oil and gas intensified Tuesday after a University of California task force abruptly pulled back a draft recommendation not to sell its fossil-fuel holdings. (http://on.wsj.com/1BqVLPK)
* New developments in negotiations over taxes could signal improving prospects for legislation to restrict inversion deals, as lawmakers seek bipartisan solutions to address growing problems in the U.S. tax system. (http://on.wsj.com/YvjujS)
* Target Corp's new Chief Executive Brian Cornell plans to double down on just a handful of departments like baby products and fashion, a strategic shift as the discounter works to bring shoppers back to its stores and better compete with online rivals. (http://on.wsj.com/1qKno1m)
* U.S. commodity regulators took long-awaited steps to make it easier for hedge funds and other firms to raise cash by publicly advertising stakes in their funds. The Commodity Futures Trading Commission late Tuesday eased long-standing marketing restrictions on so-called private offerings by hedge funds and other funds sold only to wealthy investors, a move aimed at aligning the CFTC's restrictions with similar rules set by the Securities and Exchange Commission. (http://on.wsj.com/1xGn4qI)
* Nissan Motor Co Ltd said on Wednesday that it had named Roland Krüger, a BMW executive, as head of its Infiniti luxury car division, moving swiftly to fill one of the positions left vacant by the pending departure of Andy Palmer, a top Nissan manager. (http://on.wsj.com/1wfzP7r)
* Citigroup Inc Chief Executive Michael Corbat, flanked by Mexican President Enrique Pena Nieto and top Banamex executives, said Citigroup would spend $1.5 billion over four years to improve technology systems and back-office support, while also expanding loans in Mexico, the bank's second-largest market outside the United States. (http://on.wsj.com/1p4cW11)
* Trump Entertainment Resorts Inc, which owns two Atlantic City casinos bearing Donald Trump's name, filed for Chapter 11 bankruptcy protection. The Trump Plaza already was slated to close next week, and executives for the Trump Taj Mahal warned the property could close in November unless it receives concessions from its workers. (http://on.wsj.com/1wflCHq)
* Comcast Corp reached an agreement to carry Univision Communications Inc's sports channel, the companies said Tuesday, removing a source of friction that had fueled complaints from Univision about Comcast's proposed acquisition of Time Warner Cable Inc. (http://on.wsj.com/1qDOzwh)
FT
Carmaker Renault SA and French billionaire Vincent Bollore, which will work as a team to make electric cars, said they will carry out a feasibility study for Renault to make electric cars using Ballore's batteries.
Bank of England governor Mark Carney said on Tuesday that all main parties in Westminster ruled out currency union between an independent Scotland and the rest of the UK.
America Movil SAB and Oi SA said they are in talks to bid for telecom group Telecom Italia SpA.
Politico has signed a joint venture with German publisher Axel Springer SE to expand its brand of political coverage to Europe, the company said.
UK coffee chain Costa Coffee aims to expand its presence in France with 10 stores by the end of February in addition to the eight outlets already opened in Paris.
NYT
* The fiercest opponent to Detroit's blueprint for erasing its debts and investing in city services has reached an "agreement in principle" with city officials, court documents filed Tuesday evening showed. The tentative settlement with Syncora Guarantee, a bond insurer that said its exposure in Detroit amounted to hundreds of millions of dollars, came suddenly, a week into a trial aimed at allowing Detroit, the largest American city ever to file for bankruptcy, to remake its finances and start over. (http://nyti.ms/1AwQ2pk)
* Microsoft Corp is in advanced talks to acquire the maker of the game Minecraft for more than $2 billion, people briefed on the discussions said on Tuesday. The move was intended to ensure that one of the most popular games was available for the computing giant's family of devices. (http://nyti.ms/1xFUMg4)
* Apple Inc on Tuesday introduced a highly anticipated smartwatch, which combines health and fitness monitoring with mobile computer capabilities like maps. The company also introduced two iPhones with larger screens. (http://nyti.ms/1nJDAwI)
* The chairman of the Federal Communications Commission warned the wireless phone industry on Tuesday that the commission was seriously considering subjecting mobile carriers to the same net neutrality regulations as providers of wired Internet service. (http://nyti.ms/1lUHmIn)
* As Google Inc seeks expert advice on how to carry out its "right to be forgotten" court order in Europe, the company went to Spain on Tuesday, where it began a seven-city European tour of public meetings, hearing views from privacy-rights proponents, freedom-of-information advocates and members of the public about the best ways to remove search-engine links to information that petitioners contend is intrusive and no longer relevant. (http://nyti.ms/WQAq31)
Canada
THE GLOBE AND MAIL
** Senior executives of Southwest Airlines Co are sending strong signals that they're preparing to enter the Canadian market, although cities in Canada are among 50 new destinations the airline is still considering. (http://bit.ly/1pOsNkh)
** A Parks Canada-led team has found a ship lost in the doomed Franklin expedition to unlock the Arctic nearly 170 years ago, the fruit of a search championed by Prime Minister Stephen Harper in his efforts to forge a Conservative brand of Canadian nationalism. The Prime Minister, who has styled his government a defender of Ottawa's claim to the Arctic, described the expedition as having laid the foundation for Canadian sovereignty in the region. (http://bit.ly/1wenCCD)
** The Health Canada-funded Canadian Centre on Substance Abuse is calling for a broad review of marijuana policy, including a closer look at the impact of legalization south of the border in Colorado and Washington. (http://bit.ly/1CQVxDc)
NATIONAL POST
** Cenovus Energy Inc and Canadian Natural Resources Ltd are considering divesting from their free land assets after the overwhelming success of Encana Corp's spin-off unit, the companies said on Tuesday. On Monday, Encana sold its remaining 70.2 million shares of PrairieSky Royalty Ltd for C$2.6-billion, only months after offloading 54 percent of the unit in a C$1.67-billion initial public offering. (http://bit.ly/WHS20B)
** Trailing far behind the pack, Sarah Thomson dropped out of Toronto mayor's race on Tuesday and called on the city and other candidates to coalesce around one person to oust Mayor Rob Ford. She said she will endorse whoever has the best chance of beating the mayor in the days leading up to the Oct. 27 vote. (http://bit.ly/1uvFYvO)
** Battling Islamic extremism represents the "greatest struggle of our generation," Foreign Affairs Minister John Baird told a joint House of Commons committee on Tuesday as the government revealed some Canadian troops are already inside Iraq. (http://bit.ly/1uvFhCR)
China
CHINA SECURITIES JOURNAL
- Xiang Junbo, chairman of the China Insurance Regulatory Commission, said the commission will make efforts to cut taxes in the insurance sector, which will help free up some 8 trillion yuan ($1.30 trillion) that can be used for urbanisation.
SHANGHAI SECURITIES NEWS
- Carbon fibre, rare earth and high-temperature resistant metallic materials may soon be included in the list of resources supported by the government, according to a source close to the Ministry of Industry and Information Technology. The government is considering a comprehensive framework, including subsidies, risk management and an improved tax system to support the development of the sector.
SECURITIES TIMES
- The China Banking Regulatory Commission Chairman Shang Fulin said the commission will set up a new method to evaluate the liability and management of commercial banks.
SHANGHAI DAILY
- Subdued buying sentiment continued to cloud Shanghai's housing market in the first week of September despite the arrival of the traditional high season for property sales. The purchases of new homes, excluding government-subsidised housing, dropped 35.4 percent from a week earlier to 136,600 square metres, Shanghai Uwin Real Estate Information Services said in a report.
- Premier Li Keqiang said that recent anti-trust probes had not targeted specific firms or industries, and that foreign companies accounted for just 10 percent of those involved. By increasing monitoring, China has tried to cultivate a fair and competitive business climate, he told a group of business leaders ahead of the Summer Davos forum.
CHINA DAILY
- China plans to establish a security fund for its trust industry, which has about $2 trillion under management, as repayment risks accumulate. The fund, to be established by the China Trustee Association and its members, will monitor industry risks and participate in the disposal of assets and restructuring of trust companies that are closed or suspended, the newspaper said, citing people it didn't identify.
Hong Kong
SOUTH CHINA MORNING POST
* Huawei Technologies Co Ltd, China's largest maker of telecommunications equipment, has investigated 116 employees and sent four of them to court over allegations of graft in its consumer and corporate units, according to reports from mainland media Caixin and China Business News. (http://bit.ly/Yv0LVG)
* The Centre for Food Safety is investigating the role of two Hong Kong firms in supplying the Taiwanese company at the centre of the "gutter oil" scandal. (http://bit.ly/1oq8kmp)
* Automobili Lamborghini is experiencing strong demand for its new supercar across the mainland and expects sales to pick up this year despite the crackdown on lavish spending. President Stephan Winkelmann said the Italian luxury carmaker had already received 300 orders for the entry-level Huracan LP 610-4 from the mainland, Hong Kong and Taiwan. (http://bit.ly/1tISDOh)
THE STANDARD
* The grey market price of the iPhone 6 reached a record high of 28,000 yuan ($4,563) in Beijing, just ahead of the smartphone's global introduction. The first ever iWatch and a mobile payments system were also said to be part of the new offering from Apple Inc CEO Tim Cook. (http://bit.ly/WPGJ6V)
* Illicit cigarettes make up nearly 34 percent of consumption locally, placing Hong Kong third in the list of cigarette-smuggling places in Asia, according to a study. The study "Asia-14: 2013 Illicit Tobacco Indicator" notes that illicit cigarettes worth HK$222 million ($28.6 million) was seized last year by the Customs and Excise Department, up 15.6 percent over 2012. (http://bit.ly/1rVxn7Y)
* Hong Kong's services sector will face the strongest demand for staff in the last three months this year since the fourth quarter of 2011, a survey by ManpowerGroup has found. (http://bit.ly/1uv9NwI)
HONG KONG ECONOMIC JOURNAL
* China train maker CSR Corp Ltd , which had secured $2.96 billion worth of new contract so far in the first half of 2014, has raised its full-year sales target to up to $5 billion from $3 billion, according to Chairman Zheng Changhong
* Lianhua Supermarket Holdings Co Ltd said it plans to buy Yiwu City Life Supermarket Co Ltd, in a deal to be settled by issue of new shares. The company expects leasing of the retail spaces operated by Yiwu will bring in stable monthly income.
Britain
The Times
FAIRFIELD CONSIDERS OPTIONS FOR A FRESH SHOT AT LONDON
Fairfield, owned by a consortium of private investors led by Warburg Pincus, is being advised by Rothschild on alternative routes to the public market. Perhaps via another shot at a London flotation or, more likely, a reverse takeover of any one of a number of quoted oil producers with UK assets and a yawning disparity between their values and market capitalisations. (thetim.es/ZgbvHI)
BSKYB BID MAY STILL BE ON CARDS, SAYS 21ST CENTURY FOX PRESIDENT
Chase Carey, the president of Twenty-First Century Fox Inc , has hinted that a renewed bid to take full control of BSkyB remains on the cards, but said there are no plans to make a major acquisition in the near future. (bit.ly/1ttJ9mb)
The Guardian
UK SENDS MACHINE GUNS TO HELP IRAQI FORCES FIGHT ISLAMIC STATE
The UK is sending a consignment of heavy machine guns and ammunition to Iraq's government to assist with its battle against militants from Islamic State (ISIS). (bit.ly/1AvQqnO)
MARK CARNEY WARNS TUC THAT PAY RISES MAY COME AFTER MORTGAGE HIKE
Bank of England governor Mark Carney has warned trade union members they face paying higher mortgage rates before many of them receive rises in real wages. (bit.ly/1ttzhZw)
The Telegraph
SCOTTISH SPLIT WOULD HIT UK GROWTH, WARNS TOP INVESTMENT GROUP
Britain's economic growth will be almost 1 percentage point lower next year if Scotland votes for independence, a leading investment group, Axa Investment Managers, said. (bit.ly/1AweHKH)
KEEP THE QUEEN OUT OF THE SCOTTISH REFERENDUM CAMPAIGN, BUCKINGHAM PALACE SAYS
The Palace intervened to protect the Queen's neutrality after Alex Salmond, the Scottish First Minister, risked controversy by suggesting that the Queen would be proud to reign over an independent Scotland. (bit.ly/Zg7L8X)
Sky News
B&Q BOSS WARNS OVER PRICES IF SCOTS VOTE YES
The boss of Britain's biggest DIY retail group, B&Q, has warned that Scottish consumers could face higher prices than their counterparts south of the border if voters back independence in next week's referendum. (bit.ly/YsU4Ue)
SAN MIGUEL WADDLES INTO £2BN PENGUIN BID WAR
The Filipino conglomerate San Miguel Corp is poised to wade into the 2 billion stg ($3.23 billion) auction of United Biscuits UK Ltd <IPO-UNI.L>, owner of some of Britain's biggest food brands. (bit.ly/YuTRje)
The Independent
WONGA HIRES LATVIAN SPECIALIST TO RUN SCANDAL-HIT UK BUSINESS
Controversial payday loans company Wonga hired Tara Kneafsey, a former management consultant who has been with RSA Insurance Group PLC for eight years, as its UK consumer loans managing director. (ind.pn/1ttyE20)
SCOTTISH INDEPENDENCE: BRITAIN FACES CONSTITUTIONAL CRISIS AT NEXT ELECTION
Ministers are under pressure to explain how they would respond if Scots vote for independence, as it emerged that Labour is on course to win the general election only because of its strong support in Scotland. The latest "poll of polls" for The Independent suggests that Ed Miliband will win an overall majority of 32 next May. (ind.pn/1qK4c3Q)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include: Wholesale trade inventories for July at 10:00--consensus up 0.5% Wholesale trade sales for July at 10:00--consensus up 0.6%
ANALYST RESEARCH
Upgrades
ArcelorMittal (MT) upgraded to Overweight from Underweight at Barclays CRH Plc. (CRH) upgraded to Outperform from Underperform at Raymond James Coach (COH) upgraded to Overweight from Neutral at Atlantic Equities Hartford Financial (HIG) upgraded to Outperform from Market Perform at FBR Capital Imperva (IMPV) upgraded to Outperform from Perform at Oppenheimer L Brands (LB) upgraded to Outperform from Neutral at Credit Suisse Marcus (MCS) upgraded to Buy from Neutral at B. Riley Noodles & Company (ndls) upgraded to Buy from Neutral at UBS Sunoco Logistics (SXL) upgraded to Overweight from Equal Weight at Barclays Twitter (TWTR) upgraded to Buy from Neutral at UBS
Downgrades
Apple (AAPL) downgraded to Sector Perform from Outperform at Pacific Crest Boyd Gaming (BYD) downgraded to Equal Weight from Overweight at Morgan Stanley Diodes (DIOD) downgraded to Neutral from Outperform at RW Baird eBay (EBAY) downgraded to Neutral from Overweight at Piper Jaffray Fairchild (FCS) downgraded to Neutral from Outperform at RW Baird GT Advanced (GTAT) downgraded to Neutral from Buy at Goldman GT Advanced (GTAT) downgraded to Neutral from Overweight at Piper Jaffray Mobileye (MBLY) downgraded to Hold from Buy at Deutsche Bank ON Semiconductor (ONNN) downgraded to Neutral from Outperform at RW Baird STMicroelectronics (STM) downgraded to Neutral from Outperform at RW Baird Spirit Airlines (SAVE) downgraded to Market Perform from Outperform at Cowen Tiffany (TIF) downgraded to Neutral from Outperform at Credit Suisse Vital Therapies (VTL) downgraded to Neutral from Outperform at Credit Suisse Washington Federal (WAFD) downgraded to Neutral from Buy at Sterne Agee
Initiations
American Residential Properties (ARPI) initiated with a Buy at Sterne Agee C.H. Robinson (CHRW) initiated with an Equal Weight at Barclays Cablevision (CVC) initiated with a Hold at Canaccord Charter Communications (CCMM) initiated with a Buy at Canaccord CyrusOne (CONE) initiated with a Hold at Stifel DISH (DISH) initiated with a Hold at Canaccord Digital Realty (DLR) resumed with a Hold at Stifel DirecTV (DTV) initiated with a Hold at Canaccord Equinix (EQIX) resumed with a Buy at Stifel Expeditors (EXPD) initiated with an Underweight at Barclays Farmland Partners (FPI) initiated with a Buy at Stifel Hub Group (HUBG) initiated with an Equal Weight at Barclays Netflix (NFLX) initiated with a Buy at Canaccord Netflix (NFLX) initiated with a Neutral at SunTrust Starwood Waypoint (SWAY) initiated with a Buy at Sterne Agee Time Warner Cable (TWC) initiated with a Buy at Canaccord VMware (VMW) initiated with a Buy at Maxim XPO Logistics (XPO) initiated with an Overweight at Barclays
COMPANY NEWS
Apple (AAPL) announced iPhone 6, 6 Plus, Apple Watch, Apple Pay Dollar General (DG) commenced tender offer to acquire Family Dollar (FDO) for $80/share (DLTR) Pershing Square Capital Management sent a letter to the board of Allergan (AGN) that highlights several reasons why Allergan is extremely shareholder unfriendly and why now is the time for Allergan's management team to "wake up" (VRX) AngloGold (AU) to restructure international mining under new company Urban Outfitters (URBN) said Q3 SSS thus far are low single-digit negative Carson Block shorted 500.com (WBAI), ValueWalk reported Sirius XM (SIRI) forecast net self-pay subscriber additions of approximately 1.25M in FY14
EARNINGS
Companies that beat consensus earnings expectations last night and today include: Sparton (SPA), SAIC (SAIC), HealthEquity (HQY), Limoneira (LMNR), Oxford Industries (OXM), pSivida (PSDV)
Companies that missed consensus earnings expectations include: PMFG, Inc. (PMFG), Evolution Petroleum (epm), Miller Energy (MILL), Unilife (UNIS), Krispy Kreme (KKD), Streamline Health (STRM), Peregrine (PPHM)
Companies that matched consensus earnings expectations include: Palo Alto (PANW)
NEWSPAPERS/WEBSITES
Microsoft (MSFT) in serious talks to acquire Mojang AB for more than $2B, WSJ reports Target (TGT) CEO to narrow focus to re-energize 'signature' categories, WSJ reports Apple (AAPL) could acquire Path social network, Pando Daily reports Barclays (BCS) hires BofA Merrill Lynch's (BAC) Richard Casavechia, FT reports States investigate Home Depot (HD) breach, senators call for FTC probe, Reuters reports FDA panel votes against Actavis (ACT) blood pressure pill, Bloomberg reports
SYNDICATE
Armada Hoffler (AHH) files to sell 5M shares of common stock AvalonBay (AVB) to sell 4.5M shares in a forward sales agreement with Goldman Callon Petroleum (CPE) 12.5M share Secondary priced at $9.00 DHT Holdings (DHT) proposes registered direct offering of common stock Equity One (EQY) files to sell 3.825M shares of common stock
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