- Marchers again swarm New York to protest death at hands of police (Reuters)
- N.Y. Police Chokehold Evidence to Stay Secret as Protests Spread (BBG)
- Obama to announce choice of Ash Carter for defense chief Friday: White House (Reuters)
- Boehner vows to avoid government shutdown with help from Democrats (Reuters)
- Brent Heads for 5-Year Low as Saudi Discounts Spur Competition (BBG)
- Will Cheap Oil Lead to Big Mergers? (WSJ)
- Bank of Russia Ramps Up Ruble Support (WSJ)
- China Bad-Loan Level Seen Understated After Economy Slows (BBG)
- Uber Snags $41 Billion Valuation (WSJ)
- Casino-Like Hedges Seen Hurting Airlines as Crude Plunges (BBG)
- Finns Who Can’t Be Fired Show Debt Trap at Work (BBG)
- Brent falls close to $69 after Saudi price cut (Reuters)
- BATS Faces Record SEC Fine Over Direct Edge’s Actions (WSJ)
- Philippines Moves Thousands Before Storm That May Hit Manila (BBG)
- Pakistan’s Ideas Arms Fair Suggests Demand Is Booming (BBG)
- Vatican finds hundreds of millions of euros ‘tucked away’ (Reuters)
- Singapore Air Resolving Business Class Economy Fare Snag (BBG)
- Someone didn’t BTFATH: Washington state woman wins $90 million Powerball jackpot on first try (Reuters)
Overnight Media Digest
WSJ
* Protests rippled across the United States Thursday, a day after a grand jury did not charge a New York City police officer in the death of a black man who allegedly was selling untaxed cigarettes last summer. (http://on.wsj.com/12DHFid)
* The United States learned about the possible location of an American hostage now being threatened with death by militants in Yemen a week before the Pentagon launched a mission aimed at rescuing him last month. (http://on.wsj.com/1ytqQCx)
* Ride-sharing service Uber disclosed a $41 billion valuation that represents a bet by some of the world’s top investors it can sustain a breakneck expansion pace despite fierce challenges from regulators and taxi firms. (http://on.wsj.com/1BiW7dz)
* A three-year investigation by market regulators into allegedly unfair treatment of investors by stock exchanges could result in the largest fine ever levied against a stock exchange, according to people familiar with the investigation. (http://on.wsj.com/1yZmRgP)
* Amazon.com Inc is getting into the diaper business with a private label brand that pits it against Procter & Gamble Co and other suppliers who increasingly rely on the online retail giant for sales. The generic brand, called Elements, will start with two baby products, diapers and wipes, and Amazon has plans to later expand into other household products. (http://on.wsj.com/1zXXdHJ)
* House lawmakers were nearing a deal Thursday to avert a potential pension crisis that threatens hundreds of thousands of retirees from trucking, mining and other industries. The measure to shore up so-called multiemployer pension plans still faces numerous political obstacles and could be derailed. It was generating opposition on Capitol Hill this week from some unions and advocates for seniors, who said it could lead to retiree benefit cuts. (http://on.wsj.com/1AqdzK8)
* J. Crew Group Inc translated retailing’s historic shift toward the web into dollars and cents on Thursday, writing down the value of its stores by more than half a billion dollars while leaving its online operations unscathed. (http://on.wsj.com/1AqgVg2)
* The hack at Sony Pictures Entertainment Inc revealed far more personal information than previously believed, including the Social Security numbers of current and former employees, actors and other freelancers. (http://on.wsj.com/1AqhAxY)
FT
* Qatar’s sovereign wealth fund and Brookfield Property Partners have raised their joint bid for Songbird Estates, the owner of London’s Canary Wharf financial district, with an offer that values the company at 2.6 billion pounds ($4.1 billion).
* The Church of England said it was in the process of filing shareholder resolutions on climate change at BP Plc and Royal Dutch Shell Plc. The Church said it was doing this to urge the companies to take greater effort to tackle threat of global warming.
* Spain’s Bankia presented a series of error-strewn accounts for 2011, the year it listed shares, according to a report released on Thursday by country’s high court.
* The president of European Central Bank, Mario Draghi, has maintained he can deliver new measures to fend off economic stagnation in the eurozone next year.
NYT
* George Osborne, Britain’s chancellor of the Exchequer, said starting in April, banks will be able to apply only 50 percent of their profits against past losses to calculate their tax bill, rather than all of their profits. Over five years, the measure is expected to generate 3.5 billion pounds, or $5.5 billion, Treasury documents said. (http://nyti.ms/1Aq3T22)
* Uber Technologies Inc has closed a new $1.2 billion round of financing on Thursday, with investors valuing the company at a staggering $40 billion. (http://nyti.ms/1tW81kW)
* Sky Plc, the British satellite-television operator, said it had agreed to sell a controlling stake in its online gambling business to funds advised by the private equity firm CVC Capital Partners in a deal valuing the business at up to 800 million pounds ($1.25 billion). (http://nyti.ms/12qYr2U)
* The Brazilian investment firm Bozano Investimentos has raised a new 800 million reals ($309 million) private equity fund focused on the education sector, in another indication that some investors are looking beyond the country’s current economic travails. (http://nyti.ms/1zrZb31)
* Qatar’s sovereign wealth fund and Brookfield Property Partners LP said they have made their final offer to acquire Songbird Estates Plc, which has a controlling stake in the Canary Wharf Group, at 2.6 billion pounds, or about $4 billion. (http://nyti.ms/1CKZj3s)
* Europe’s antitrust watchdog has opened an investigation into the proposed $4.1 billion acquisition of the Spanish cable provider Jazztel Plc by the French telecom giant Orange SA. (http://nyti.ms/1s13deA)
* Unilever Plc said on Thursday that it planned to separate its North American and European spreads business, which includes Flora and Bertolli margarine, into a standalone company in hopes of improving its performance. (http://nyti.ms/1Aq8yB2)
Canada
THE GLOBE AND MAIL
** The newest judge on the Supreme Court of Canada is facing questions about her conduct as a lawyer in two cases. In a letter signed by more than 350 law students, lawyers and professors from several provinces, Justice Cote is accused of demeaning a Manitoba judge and contributing to her decision to resign from the bench. (http://bit.ly/1z0DRDm)
** Cost control has become a major concern for Canadian banks as the country’s largest lenders grapple with slower growth and soaring expenses. Canadian Imperial Bank of Commerce and Toronto-Dominion Bank, both of which released fourth-quarter earnings Thursday, reported expense growth that outpaces revenues. (http://bit.ly/1ymtH1g)
** The federal government is approving Burger King Worldwide Inc’s C$12.5-billion takeover of Tim Hortons Inc , but has made the U.S. fast-food giant agree to a list of conditions that include maintaining Canadian jobs and reserving half of the new company’s board seats for Canadians. (http://bit.ly/1ymu9fQ)
NATIONAL POST
** Prime minister Stephen Harper chastised the Ontario government on Thursday, saying it ought to focus less on “confrontation” and more on getting its fiscal house in order. (http://bit.ly/1tPFdf5)
** On a whirlwind trip north of the border, New Jersey Governor Chris Christie staked out a claim to be Canada’s new BFF, reiterating his support for the stalled Keystone XL pipeline and praising Prime Minister Stephen Harper. (http://bit.ly/124mZPv)
** Enbridge Inc, the Calgary-based pipeline company, announced it’s moving some of its legacy assets – such as its big Canadian oil pipeline system – into an affiliated income fund that enjoys a higher valuation. (http://bit.ly/1ymxgVa)
China
CHINA SECURITIES JOURNAL
– The reform plan for the first batch of state-owned companies has been finalised and will be launched soon, sources told the newspaper.
– China should consider cutting the reserved requirement ratio (RRR) to help lower the financing costs of small and medium-sized enterprises, Liu Yingqiu, director of the Center for Private Economic Studies at the Chinese Academy of Social Sciences, said in an exclusive interview with the newspaper.
21st CENTURY BUSINESS HERALD
– China plans to launch its first coastal nuclear project next year and would follow the most stringent international standards, said Li Pumin, deputy secretary general of the National Development and Reform Commission.
SHANGHAI SECURITIES NEWS
– China’s Ministry of Finance is soliciting private investment for 30 projects, worth a total of 180 billion yuan($29.3 billion), in the form of public-private partnerships (PPP) and has also released guidelines for PPP cooperation.
CHINA DAILY
– China’s subway is on track to reach 8,500 kilometres by 2020 to become the world’s longest network, Minister of Transport Yang Chuantang said on Thursday in Beijing.
– China will stop transplanting organs from executed prisoners from the beginning of 2015, said Huang Jiefu, director of the China Organ Donation Committee and a Former Vice-minister of Health.
Britain
The Times
TESCO THINKS OUTSIDE THE SHOP IN SEARCH FOR NEW CHAIRMAN
The board of Tesco has discussed casting its net as widely as possible to find a replacement for Chairman Richard Broadbent, who is stepping down after a 250 million pound ($391.78 million) accounting scandal and three profit warnings. (http://thetim.es/1zUjSEL)
QATARIS SWITCH CHIEF ON EVE OF CANARY WHARF BID DEADLINE
The emir of Qatar has removed the chief executive of the country’s sovereign wealth fund a day before it faces a “put up or shut up” deadline in its bid to win control of Canary Wharf. (http://thetim.es/1zmI031)
The Guardian
BRITISH GAS HIT BY 11 MLN POUNDS OFGEM FINE FOR ENERGY EFFICIENCY DELAYS
British Gas is to pay 11.1 million pounds to charity after it was punished by Ofgem over its failure to deliver energy efficiency measures on time. Ofgem and British Gas said the penalty will be used to help vulnerable customers through energy efficiency advice and improvements. (http://bit.ly/12yjLET)
PROPERTY INVESTORS IN ISLINGTON WHO LEAVE HOMES EMPTY COULD FACE JAIL
Property investors who leave homes empty just to make money from property price rises could be fined or even jailed under proposals made by a London council. Islington plans to force owners of newly built homes to prove they are occupied. If homes are left empty for longer than three months, owners will face high court injunctions. (http://bit.ly/1tMU35Z)
The Telegraph
AUTUMN STATEMENT: GEORGE OSBORNE ACCUSED OF CREATING ‘BLACK HOLE’
George Osborne’s pre-election giveaways are funded by temporary revenue raisers that will leave a black hole in the public finances in future years, experts have warned. The Institute for Fiscal Studies said the measures announced by the Chancellor in the Autumn Statement had “increased the risk in the public finances.” (http://bit.ly/1rVwQTZ)
GLAXOSMITHKLINE SCRAPS SALE OF OLD DRUGS
GlaxoSmithKline has scrapped the sale of its older drugs portfolio after spending months trying to offload the division to private equity firms and rival companies. (http://bit.ly/1vtgoKt)
Sky News
THEO FENNELL OWNER BACKS DIGITAL LENDER ATOM
The owner of Theo Fennell, the upmarket jeweller, is among a high-profile cast of shareholders backing Atom, the digital-only British bank which is targeting a launch next year. EME Capital, which took Theo Fennell private last year, has bought a small stake in Atom. (http://bit.ly/1Bi5J8q)
ADAMSON PREPARES TO LEAVE FCA AS REPORT LOOMS
Clive Adamson, the Financial Conduct Authority’s director of supervision, is expected to leave in the coming months, although it is not clear whether his departure date has been finalised. The reasons for Adamson’s prospective departure were unclear, with insiders refusing to say whether he would be the subject of specific criticism in next week’s report. (http://bit.ly/1ykXPdk)
The Independent
SKY SELLS MAJORITY STAKE IN SKY BET ADDING £800 MILLION TO COFFERS AMID DEAL FRENZY IN TELECOMS SECTOR
Sky has added up to 800 million pounds to its coffers for Premier League rights and a potential swoop for a mobile operator with the sale of its Sky Bet online gaming business. (http://ind.pn/1FVugQz)
MULBERRY SAYS SALES RECOVERING AFTER DISASTROUS MOVE INTO HIGH-END LUXURY MARKET
Mulberry, the maker of Cara Delevigne and Alexa Chung-inspired handbags, has claimed it has finally turned a corner as sales picked up after a dire 18 months. (http://ind.pn/1tNcO9i)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Nonfarm payrolls for November at 8:30–consensus up 230,000
Unemployment rate for November at 8:30–consensus 5.8%
International trade balance for October at 8:30–consensus deficit $41.0B
Factory orders for October at 10:00–consensus down 0.3%
ANALYST RESEARCH
Upgrades
Deluxe (DLX) upgraded to Outperform from Market Perform at Northland
Freescale (FSL) upgraded to Buy from Hold at Evercore ISI
National Retail Properties (NNN) upgraded to Buy from Neutral at BofA/Merrill
Northrop Grumman (NOC) upgraded to Conviction Buy from Buy at Goldman
Northrop Grumman (NOC) upgraded to Outperform from Market Perform at Bernstein
Teekay Tankers (TNK) upgraded to Equal Weight from Underweight at Morgan Stanley
Tyson Foods (TSN) upgraded to Conviction Buy from Buy at Goldman
Valspar (VAL) upgraded to Overweight from Neutral at JPMorgan
Vodafone (VOD) upgraded to Buy from Neutral at Goldman
Downgrades
ABB (ABB) downgraded to Sell from Hold at Deutsche Bank
ADP (ADP) downgraded to Hold from Buy at Stifel
AMC Entertainment (AMC) downgraded to Neutral from Buy at B. Riley
Actuant (ATU) downgraded to Hold from Buy at KeyBanc
Altra Holdings (AIMC) downgraded to Hold from Buy at KeyBanc
Beneficial Mutual (BNCL) downgraded to Neutral from Buy at Sterne Agee
Dril-Quip (DRQ) downgraded to Market Perform from Outperform at FBR Capital
Eagle Materials (EXP) downgraded to Buy from Conviction Buy at Goldman
EastGroup Properties (EGP) downgraded to Underweight from Hold at KeyBanc
Frank’s International (FI) downgraded to Market Perform at FBR Capital
IHS Inc. (IHS) downgraded to Hold from Buy at Deutsche Bank
IntercontinentalExchange (ICE) downgraded to Neutral from Buy at Citigroup
Lockheed Martin (LMT) downgraded to Market Perform from Outperform at Bernstein
Nintendo (NTDOY) downgraded to Underperform from Hold at Jefferies
Prothena (PRTA) downgraded to Underperform from Neutral at BofA/Merrill
Publicis (PUBGY) downgraded to Neutral from Outperform at Exane BNP Paribas
Rockwell Automation (ROK) downgraded to Neutral from Buy at BofA/Merrill
Spansion (CODE) downgraded to Neutral from Buy at Sterne Agee
Thor Industries (THO) downgraded to Neutral from Buy at SunTrust
Toro Company (TTC) downgraded to Market Perform from Outperform at Raymond James
Valspar (VAL) downgraded to Buy from Conviction Buy at Goldman
Initiations
Acorda Therapeutics (ACOR) initiated with a Neutral at Goldman
Builders FirstSource (BLDR) initiated with a Neutral at Sterne Agee
CSI Compressco (CCLP) initiated with a Buy at Stifel
California Resources Corp. (crc) initiated with a Market Perform at Raymond James
Castlight Health (CSLT) initiated with an Equal Weight at First Analysis
DCP Midstream (DPM) initiated with a Buy at MLV & Co.
DSP Group (DSPG) initiated with an Outperform at Imperial Capital
EnLink Midstream (ENLK) initiated with a Buy at MLV & Co.
Facebook (FB) initiated with a Buy at MKM Partners
FireEye (FEYE) initiated with a Market Perform at JMP Securities
FleetCor (FLT) initiated with a Buy at Deutsche Bank
Knowles (KN) initiated with a Market Perform at FBR Capital
Marlin Midstream (FISH) initiated with a Buy at MLV & Co.
PepsiCo (PEP) initiated with a Buy at Evercore ISI
Relypsa (RLYP) initiated with an Outperform at Oppenheimer
Rocket Fuel (FUEL) initiated with a Sell at Maxim
Summit Midstream (SMLP) initiated with a Buy at MLV & Co.
TubeMogul (TUBE) initiated with a Buy at Maxim
Western Gas Partners (WES) initiated with a Buy at MLV & Co.
COMPANY NEWS
IBM (IBM) CFO defended investment strategy in piece on CNBC
Canada approved Burger King (BKW) acquisition of Tim Hortons (THI)
Five Below (FIVE) appointed president and COO Joel Anderson as president and CEO. Current CEO and co-founder, Tom Vellios, will work with Anderson in the coming months to ensure a smooth and orderly transition and will remain active in the company in the role of Executive Chairman
Dollar Tree (DLTR) and Family Dollar (FDO) said they have been actively engaging with the staff of the FTC as they review the pending merger
GSK (GSK) won’t pursue divestment of certain brands in established products portfolio
General Communications (GNCMA) to buy Alaska Communications (ALSK) subscriber base for $300M
Synaptics (SYNA) announced retirement of CFO Kathleen Bayless and raised Q2 revenue guidance
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Rally Software (RALY), Smith & Wesson (SWHC), Sportsman’s Warehouse (SPWH), Ambarella (AMBA), Zumiez (ZUMZ), Ulta Salon (ULTA), Vitesse (VTSS)
Companies that missed consensus earnings expectations include:
Big Lots (BIG), Exa Corp. (EXA), Cooper Companies (COO), Finisar (FNSR)
Companies that matched consensus earnings expectations include:
Casella Waste (CWST), Five Below (FIVE), American Eagle (AEO)
Big Lots (BIG) backs FY14 EPS view of $2.40-$2.50, consensus $2.49
Big Lots (BIG) raises high-end of Q4 EPS view to $1.70-$1.80 from $1.70-$1.76
Casella Waste (CWST) backs operating guidance for next fiscal year
Five Below (FIVE) sees FY14 adjusted EPS 87c-90c, consensus 91c
Five Below (FIVE) sees Q4 EPS 59c-62c, consensus 63c
NEWSPAPERS/WEBSITES
RadioShack (RSH) to stop matching for 401(k) retirement plans, Bloomberg reports
MetLife (MET) close to systemically important label, Bloomberg reports
Sony (SNE) security breach exposed personal data of Hollywood employees, WSJ reports
U.S. probes Och-Ziff (OZM) fee paid in Libya part of bribery investigation, WSJ reports
GM (GM) looking to sell 500K Cadillacs annually by 2020, Reuters reports
Disney (DIS) should continue to deliver returns, Barron’s says
SYNDICATE
City Office REIT (CIO) 3.75M share Spot Secondary priced at $12.50
Fiat Chrysler (FCAU) files to sell 87M shares of common stock
GTT Communications (GTT) files automatic common stock shelf
Global Partners (GLP) offers 3.57M common units representing limited partner interests
Southern Missouri Bancorp (SMBC) files to sell 345,893 shares for holders
Trevena (TRVN) 11.25M share Secondary priced at $4.00
via Zero Hedge http://ift.tt/12GAu8R Tyler Durden