- The Man Who Broke the Middle East (Politico)
- Kerry presses Maliki as Iraq loses control of Syrian, Jordanian borders (Reuters)
- Hank Paulson takes on global warming next: The Coming Climate Crash – Lessons for Climate Change in the 2008 Recession (NYT)
- In Yellen We Trust Is Bond Mantra as Inflation Threats Dismissed (BBG)
- After port fraud, China’s vast warehouse sector under scrutiny (Reuters)
- Draghi Says Unlimited Cash Through 2016 Is Rate Signal (BBG)
- Tapes Said to Reveal Polish Minister Disparaging U.S. Ties (NYT)
- CDC reassigns director of lab behind anthrax blunder (Reuters)
- BNP set to receive ban to transact in USD as part of $9 billion settlement (WSJ)
- GE Clears Last French Hurdle to Clinch Alstom Deal (BBG)
- Al Jazeera journalists jailed in Egypt, supporters stunned (Reuters)
- ISDA Asked to Rule If Argentina Credit-Default Swaps Triggered (BBG)
- Prison Inmates Offer Captive Market For Gadget Makers (NBC)
- Wealth Managers Exit India as Millionaires Hard to Entice (BBG)
- U.S. Workers Can’t Get No (Job) Satisfaction (WSJ)
- Isis jihadists using World Cup and Premier League hashtags to promote extremist propaganda on Twitter (Independent)
- MH370 captain plotted route to southern Indian Ocean on home simulator (Telegraph)
- DOD and VA Can’t Prove Their PTSD Care is Working, Study Claims (NBC)
Overnight Media Digest
WSJ
* BNP Paribas SA and U.S. prosecutors have agreed to broad terms of a deal in which the bank would pay $8 billion to $9 billion and accept other punishment based on what investigators say is evidence the bank intentionally hid $30 billion of financial transactions that violated U.S. sanctions, according to people close to the probe. (http://on.wsj.com/1mczqji)
* The French government struck a deal to purchase a stake in Alstom SA from its leading shareholder, Economy Minister Arnaud Montebourg said Sunday, clearing the way for General Electric Co. to complete its acquisition of most of the French industrial firm. (http://on.wsj.com/1lJYVYx)
* The federal government is stepping up scrutiny of how U.S. companies are valued for employee-stock-ownership plans, a vital source of retirement savings for millions of workers. (http://on.wsj.com/1io4zko)
* Lululemon Athletica founder Dennis “Chip” Wilson is working with bankers at Goldman Sachs Group Inc as he weighs options for shaking up the company’s board and gaining more influence over the yoga gear maker’s operations, people familiar with the situation said. (http://on.wsj.com/1yCXEZ5)
* Harbinger Group Inc, the holding company headed by hedge-fund titan Philip Falcone, is preparing to make an unsolicited offer to acquire Central Garden & Pet Co. for about $1.1 billion, according to a person familiar with the matter. (http://on.wsj.com/1nXo16n)
* Venture-capital firm Andreessen Horowitz, known for backing Facebook Inc and Pinterest Inc, is investing $90 million in Tanium Inc, which helps companies pinpoint security threats and manage their sprawling computer networks. Andreessen Horowitz’s investment values seven-year-old Tanium at $900 million, according to people familiar with the transaction. (http://on.wsj.com/1inHUo4)
NYT
* The last major obstacle to General Electric Co’s $13.5 billion acquisition of Alstom’s energy assets fell on Sunday, when the French government agreed to buy a stake in the French industrial conglomerate from the billionaire Bouygues family. (http://nyti.ms/1uVtQCi)
* Michael Isikoff, the investigative reporter who recently left NBC News, is joining Yahoo Inc News as its chief investigative correspondent. Yahoo is expected to announce Isikoff’s hiring on Monday. (http://nyti.ms/1m39wti)
* AbbVie Inc is considering raising its takeover bid for Shire Plc after the European drugmaker rejected its latest offer for about $46.5 billion. While its initial bid was rejected, people briefed on AbbVie’s plans say it is determined to pursue Shire, or find another foreign company to buy. (http://nyti.ms/UTDif0)
* General Motors Co is nearly ready to begin compensating those left injured by the defective ignition switches that led to the recall of 2.6 million vehicles. (http://nyti.ms/T2jV1F)
* Regulators in Europe are pressing for new ways that would make it impossible to disable safety and communications systems on commercial airliners. Officials from the European Aviation Safety Agency and the European Commission have scheduled a meeting for July 8 with experts from the 28 member states of the European Union to discuss new requirements aimed at ensuring the continuous transmission of location data for all aircraft – regardless of their country of manufacture or registration – throughout the flight. (http://nyti.ms/1mcKVHh)
Canada
THE GLOBE AND MAIL
* The federal Conservatives are playing defense in the western strongholds of Alberta and British Columbia amid rising tensions over two divisive decisions – the crackdown on temporary foreign workers and approval of the Northern Gateway pipeline. (http://bit.ly/1p8M4mH)
* Justice Department’s finest legal minds are falling prey to a garden-variety Internet scam. An internal survey shows almost 2,000 staff were conned into clicking on a phony “phishing” link in their email, raising questions about the security of sensitive information. (http://bit.ly/1uVTl6t)
Reports in the business section:
* The founder of Lululemon Athletica Inc is preparing to go back into battle with the yoga-wear retailer as it struggles to recover from a string of setbacks. Chip Wilson is talking with bankers at Goldman Sachs Group Inc in considering a host of options, including teaming with a private-equity firm to mount a buyout or selling his holdings in the company, a source familiar with the situation said Sunday. (http://bit.ly/1qDNrJJ)
NATIONAL POST
* Two weeks after their helicopter escape from a Quebec jail sparked an international manhunt, three alleged gangsters were recaptured as they slept early Sunday morning when a police tactical unit busted into an upscale condo near Montreal’s Old Port, taking them without firing a shot. (http://bit.ly/1nvK4zu)
Hong Kong
SOUTH CHINA MORNING POST
— Police are investigating the disappearance of tens of thousands of dollars worth of the virtual currency bitcoin in a move that could open the floodgates for more potential victims to come forward. Scrutiny has fallen on the conduct of industry newcomer Hong Kong Crypto Exchange whose operation appears to have ground to a halt. (http://bit.ly/1pBvycI)
— More than 700,000 ballots have been cast in an unofficial poll on Hong Kong’s electoral reform that a former top mainland official in charge of the city’s affairs dismissed as unrepresentative. (http://bit.ly/1li2IN9)
— Shangri-La Hotel and Resorts and the South China Morning Post, both part of the Kerry Group, are among the top-five most influential brands in Hong Kong, according to a survey by a popular business networking website LinkedIn. (http://bit.ly/1sxJGr4)
THE STANDARD
— There were online blasts on Sunday for the 70 passengers who held a Hong Kong Airlines flight to ransom, saying they were no better than hijackers. The passengers had refused to leave the plane after their flight was delayed on Friday night and staged an 18-hour sit-in until they were given an apology and HK$800 ($100) each in compensation. (http://bit.ly/T24Mxa)
— More than 500 flats from new projects were sold over the weekend, in stark contrast to a frozen secondary market. Grand Austin, from New World and Wheelock, nearly sold out its first batch of 209 units on launch on Saturday. (http://bit.ly/1mcgK38)
— More companies, including herbal tea retailer Hung Fook Tong and wastewater treatment firm Kangda, will take orders from retail investors to raise more than HK$10 billion ($1.29 billion) through initial public offerings this week in Hong Kong amid the release of details on the latest batch of government inflation-linked bonds. (http://bit.ly/1rocnlW)
HONG KONG ECONOMIC JOURNAL
— Henderson Land Development Co Ltd said it would sell its AIA Financial Centre, an office building in Kowloon, to Sunlight Real Estate Investment Trust for HK$1.96 billion ($252.85 million). Sunlight will also issue 201 million new units to Henderson at HK$3.90 per unit for HK$784 million.
APPLE DAILY
— The Hong Kong government is expected to offer seven residential sites and two plots of land for commercial development for sale in the July-September quarter. The residential sites, which are valued at HK$10 billion ($1.29 billion), are expected to provide up to 3,000 flats on completion of development.
Britain
The Telegraph
RATES NEED TO GO UP, SAYS BANK ‘DOVE’ DAVID MILES
Britain’s recovery has become entrenched and the Bank of England should start to raise interest rates in the coming months to reflect the stronger economy, according to one of its most dovish policymakers.
LONDON IS NOT IN A PROPERTY BUBBLE, SAYS ZOOPLA BOSS
London is not in a property “bubble” and ought to be an even more expensive place to live, the boss of the property website group Zoopla has claimed.
The Guardian
ASOS WAREHOUSE FIRE IN SOUTH YORKSHIRE LEADS COMPANY TO HALT SALES
Online fashion retailer Asos has been forced to suspend its website and stop taking orders, possibly for several days, after a fire at the firm’s main warehouse in Barnsley.
BRITISH AIRWAYS CABIN CREW ‘READY TO STRIKE’ OVER PAY CLAIM
British Airways is facing the threat of renewed strikes after cabin crew said they were prepared to take industrial action after their pay claims were rebuffed.
The Times
ASOS PREPARES ITSELF FOR THE NEXT ASSAULT
Asos will attempt to reassure shareholders this morning amid fears that “short-sellers” could try to exploit the closure of the online retailer’s website after a fire at its main warehouse.
BRITISH ECONOMY IN THE FIRING LINE AS IRAQI OIL CRISIS THREATENS DEVASTATING PRICE RISE
An oil-price spike driven by the worsening crisis in Iraq could derail Britain’s recovery, drive up government borrowing, put household finances back under pressure, and damage global growth.
Sky News
TRAINLINE TRACKS FLOAT DESPITE TECH WOBBLE
Britain’s biggest online rail booking operation Trainline is on track for a stock market flotation despite disappointment over the performance of technology listings in London so far this year.
RAMADA OWNER WAS 6 BLN STG INTERCONTINENTAL SUITOR
The owner of the Ramada hotel chain was the mystery suitor behind a recent 6 billion pounds takeover offer for the FTSE-100 hospitality provider InterContinental Hotels Group, Sky News reported Saturday.
Fly On The Wall 7:00 AM Market Snapshot
ECONOMIC REPORTS
Domestic economic reports scheduled today include:
Chicago Fed national activity index at 8:30–consensus 0.2
Markit U.S. manufacturing PMI for June at 9:45–consensus 56.0
Existing home sales for May at 10:00–consensus up 1.9% to 4.75M rate
ANALYST RESEARCH
Upgrades
Ashland (ASH) upgraded to Buy from Hold at KeyBanc
BioCryst (BCRX) upgraded to Outperform from Market Perform at Wells Fargo
Burlington Stores (BURL) upgraded to Buy from Neutral at Goldman
DISH (DISH) upgraded to Buy from Neutral at Citigroup
Express (EXPR) upgraded to Buy from Neutral at Janney Capital
Pearson (PSO) upgraded to Equal Weight from Underweight at Morgan Stanley
Sequenom (SQNM) upgraded to Outperform from Market Perform at William Blair
Downgrades
AMD (AMD) downgraded to Underperform from Sector Perform at Pacific Crest
Casella Waste (CWST) downgraded to Hold from Buy at Wunderlich
Helmerich & Payne (HP) downgraded to Market Perform from Outperform at FBR Capital
Hercules Offshore (HERO) downgraded to Sell from Neutral at Goldman
Nordstrom (JWN) downgraded to Neutral from Buy at Goldman
Owens Corning (OC) downgraded to Neutral from Buy at Longbow
SunPower (SPWR) downgraded to Hold from Buy at Brean Capital
Teradata (TDC) downgraded to Market Perform from Outperform at JMP Securities
Initiations
Emerald Oil (EOX) initiated with a Buy at Brean Capital
Enable Midstream (ENBL) initiated with a Market Perform at Wells Fargo
LDR Holding (LDRH) initiated with an Outperform at RBC Capital
Rayonier Advanced Materials (RYAM) initiated with an Outperform at RBC Capital
COMPANY NEWS
Alstom (ALSMY) board recommended GE (GE) offer to buy power and grid business (SIEGY)
Google’s (GOOG) Nest acquired in-home camera maker Dropcam
Santander (SAN) announced plans to acquire GE Money Bank AB (GE) for approximately EUR700M
Avago (AVGO) said it would acquire PLX Technology (PLXT) for $6.50 per share in cash, or approximately $309M
Cubist (CBST) received FDA approval for MRSA antibiotic Sivextro
EARNINGS
Companies that missed consensus earnings expectations include:
Ixia (XXIA)
NEWSPAPERS/WEBSITES
BNP (BNPQY) and U.S near deal to settle charges for $8B-$9B, WSJ says
BofA (BAC), FDIC lawsuit revived, Bloomberg reports
lululemon (LULU) founder talks to bankers as he considers options, WSJ reports
Viacom (VIA) must face Cablevision (CVC) lawsuit, Bloomberg reports
Siemens (SIEGY_ lingers nearby should Alstom (ALSMY)-GE (GE) talks fall apart, Reuters reports
Nissan (NSANY), Honda (HMC) recalling vehicles for defective airbags, AP reports
Wyndham (WYN) was mystery bidder for InterContinental (IHG) earlier this year, Sky News says
Royal Dutch Shell (RDS.A) could pay $51M to settle Nigeria oil spills, Reuters reports
Oracle (ORCL), Red Hat (RHT), BlackBerry (BBRY) working to meet challenges, Barron’s says
Pier 1 Imports (PIR) could rise 20%, Barron’s says
Apache (APA) shares could climb 20%, according to bulls, Barron’s says
PetSmart (PETM) should recover, Barron’s says
Express Scripts (ESRX) could rise 10%, Barron’s says
SYNDICATE
DCP Midstream (DPM) files to sell $500M of common units
Fox Factory (FOXF) files to sell 6.51M shares for holders
RiceBran (RIBT) files to sell 2.94M shares for holders
Six Flags (SIX) files to sell 16.42M shares for holders
via Zero Hedge http://ift.tt/Tnya1q Tyler Durden