- Attorneys Known for Large Civil Settlements Line Up to Sue GM Over Company’s Handling of Defective Ignition Switches (WSJ)
- Pakistani Taliban attack airport in Karachi, 27 dead (Reuters)
- U.S. Official: Sgt. Bowe Bergdahl Has Declined to Speak to His Family (WSJ)
- Ukraine Gas Talks Resume in Brussels to Avoid Cut-off This Week (BBG)
- China’s Central Bank Flexes Muscle (WSJ)
- China says Vietnam, Philippines’ mingling on disputed isle a ‘farce’ (Reuters)
- World Needs Record Saudi Oil Supply as OPEC Convenes (BBG)
- Kraft Raises Prices on Maxwell House, Yuban U.S. Coffee Products (BBG)
- Credit Suisse May Split Off Part of its Fixed-Income Business (WSJ)
- United Continental: One Sick Bird (WSJ)
- Ukrainian Leader Says Eastern Violence Must End This Week (BBG)
- Tyson Wins Battle to Buy Hillshire (WSJ)
- Shorts Reload in S&P 500 Ritual That Signaled Gain Before (BBG)
- Sterling Considering Moving Forward With Lawsuit Against NBA (WSJ)
Overnight Media Digest
WSJ
* China’s biggest economic agencies are putting up a united front on so-called mini-stimulus measures, but behind the scenes officials have battled over whether more should be done to fuel growth. (http://ift.tt/1pVDW88)
* General Motors Cos’ recall related to defective ignition switches is attracting lawyers who forged some of the biggest civil settlements ever, from the landmark tobacco litigation to the Exxon Valdez. (http://ift.tt/1pVDW8a)
* Embattled Los Angeles Clippers owner Donald Sterling is considering going ahead with his lawsuit against the NBA in the wake of comments made by commissioner Adam Silver on Sunday night, according to his attorney. (http://ift.tt/1qgBuXa)
* Nearly four years after United Continental Holdings began its bumpy take-off as a merged airline, it still is struggling to reach cruising altitude. (http://ift.tt/1pVDTcH)
* Credit Suisse Group AG is considering splitting off a piece of its fixed-income trading business into a separate company. While other banks have retrenched from the business of bond trading, the Swiss bank in March registered a new subsidiary, Wake USA LLC, to trade U.S. Treasurys, bond futures and other products electronically. (http://ift.tt/1pVDW8e)
* Several European nations are moving to include illicit doings like drugs and prostitution when tallying their GDP, but some economists are questioning the merit and methods of trying to measure the shadow economy. (http://ift.tt/1qgBuXh)
FT
Fearing that western sanctions may freeze them out of the U.S. dollar market, Russian companies are preparing to switch contracts to renminbi and other Asian currencies, according to two top bankers. (http://ift.tt/1pVDTsV)
Credit Suisse is likely get a bonus from Chinese ecommerce group Alibaba’s potential $20 billion listing that will probably exceed the fees it receives from being one of the six banks underwriting the New York listing.
State-backed Lloyds Banking Group is set to value its TSB unit at about 10 percent below its book value when it floats the smaller bank as soon as Monday, according to sources.
The chairman of Italy’s Banca Monte dei Paschi di Siena bank, one of Europe’s most experienced banking dealmakers in his former role as chief executive of UniCredit , said he believed the introduction of a single banking supervisor in Europe “will reopen international M&A”.
Anglo-Dutch oil major Royal Dutch Shell has appointed headhunters at Egon Zehnder to advise in its search for a new chairman, as incumbent Jorma Ollila prepares to step down.
NYT
* Sometime late next year Time Inc will leave its home of more than five decades, the Time & Life Building in Rockefeller Center, and head to new quarters in downtown Manhattan. On Monday, the nation’s largest magazine publisher will begin trading as an independent company – stock symbol: TIME – with an uncertain future. (http://ift.tt/1qgBwOU)
* Hillshire Brands, the company that manufactures Jimmy Dean and Ball Park hot dogs, is expected to declare Tyson the victor of a bidding war for itself, people briefed on the matter said on Sunday. Tyson is expected to pay $63 a share in cash that would value Hillshire at $7.7 billion, 71 percent higher than its market capitalization before bidders emerged for the company. (http://ift.tt/1pVDTsX)
* On Monday, Netflix shareholders will vote at the company’s annual meeting on a proposal by two public pension funds to separate the roles of chairman and chief executive. Both are held by Reed Hastings, Netflix’s co-founder. (http://ift.tt/1pVDW8m)
* Non-compete clauses are now appearing in far-ranging fields beyond the worlds of technology, sales and corporations with tightly held secrets, where the curbs have traditionally been used. From event planners to chefs to investment fund managers to yoga instructors, employees are increasingly required to sign agreements that prohibit them from working for a company’s rivals. (http://ift.tt/1qgBuXo)
* The fastest-growing niche in the industry today is Cyber-insurance. Specialized policies to protect against online attacks are offered by about 50 carriers, including big names like the American International Group, Chubb and Ace. As data breaches have become a reality of the business world, more companies are buying policies; demand increased 21 percent last year from 2012, according to Marsh, a risk management company and insurance broker. (http://ift.tt/1pVDTt3)
Canada
THE GLOBE AND MAIL
* With three days to go in a neck-and-neck Ontario election campaign, Kathleen Wynne of the Liberal Party and Tim Hudak of the Progressive Conservative Party are now taking decidedly different strategic approaches. The Liberal leader is turning her fire toward Andrea Horwath, leader of the Ontario New Democratic Party, trying to drive New Democratic supporters to her party and polarize the race. (http://ift.tt/1pVDTt9)
* The British Columbia government has reached a tentative deal with the union representing school support staff – from teaching assistants to bus drivers – even as the dispute between the employers’ association and the province’s teachers continues to drag on. The agreement covers a five-year term from July 1, 2014 to June 30, 2019. (http://ift.tt/1pVDWoD)
Reports in the business section:
* Iqbal Singh Kingra, once a director of agriculture for the Indian state government of Himachal Pradesh, is the spiritual leader of a foundation that builds high-tech schools for India’s rural poor. What’s unusual is one of the ways he funds the effort: By selling canola oil harvested and ground on the Canadian Prairies. (http://ift.tt/1qgBwOW)
NATIONAL POST
* Texas-based wind power developer Mesa Power is seeking $653 million in damages under a North American Free Trade Agreement challenge that accuses the government of Ontario of manipulating Green Energy Act rules to benefit the interests of Liberal-connected firms, according to court documents obtained by the National Post. (http://ift.tt/1pVDWoG)
FINANCIAL POST
* While Canada’s engine for job creation is sputtering, take some solace in the fact that U.S. employment growth is gaining traction. Like so many elements of the economy, Canada will benefit from the hiring gains made by the United States. U.S. employers added 217,000 positions in May – lifting job growth past the pre-recession peak for the first time, reclaiming the 8.7-million jobs lost since the downturn struck in 2008. Their unemployment gauge remained at 6.3 percent in May, the lowest level in more than five years. (http://ift.tt/1qgBvdH)
Hong Kong
SOUTH CHINA MORNING POST
— Small real estate agents were once vulnerable to a market downturn in the highly competitive industry, but things have changed for those who turned themselves into an online operation. With rental expenses at a minimum, Okay.com is an online property agency that appears to have come out unscathed from a cooling market. (http://ift.tt/1pVDTtd)
— Hong Kong choked on its smoggiest day of the year so far on Sunday as a trough of low pressure left the city coping with pollution that represented a “serious risk” to health. (http://ift.tt/1qgBvdO)
— Two listing candidates, Tianhe Chemicals and Dynagreen Environmental Protection, will take orders from retail investors from Monday, raising almost $1 billion by floating their shares in Hong Kong. (http://ift.tt/1pVDWoO)
THE STANDARD
— A mainland legal academic has laid down the path for the qualification of candidates in the 2017 chief executive election. Peking University law professor Rao Geping said the nominating committee will vote on each of the potential candidates, and those with the highest votes will run in the election. (http://ift.tt/1qgBvdR)
— Bank of East Asia customers were up in arms on Sunday when the bank’s 262 automated teller machines were out of service for 12 hours. The bank said ATM services were suspended from 1am on Sunday by an unexpected technical issue. (http://ift.tt/1pVDWoQ)
— Marks and Spencer could follow in the footsteps of British supermarket chain Tesco and seek a powerful partner in the mainland. Managing Director of Greater China Stephen Rayfield said the company aims to work with a strong partner with excellent local experience and expertise and accelerate growth across China. (http://ift.tt/1pVDTJs)
HONG KONG ECONOMIC JOURNAL
— Hong Kong-based Sun Hung Kai Financial plans to expand its securities investment and wealth management businesses into mainland China, according to Executive Director William Leung.
— Chinese raw milk producer China Modern Dairy aims to expand sales of its own brand of ultra-high temperature milk products into second- and third-tier Chinese cities, hoping to double its sales from last year to 600 million yuan ($96.00 million) this year, according to deputy Chairman Lina Gao.
— Kaisa Group Holdings Ltd said its aggregate contracted sales from January to May amounted to 8.329 billion yuan ($1.33 billion), a decrease of 4.3 percent over the same period last year.
APPLE DAILY
— LED lighting products maker Landing International Development Ltd said it would issue 120 million new shares, or 6.96 percent of its enlarged share capital, raising HK$600 million ($77.39 million) to fund investments and for general working capital.
Britain
The Telegraph
LLOYDS PRICES TSB ‘TO GO’ WITH LOSS-LEADING 1.44 BLN STG VALUATION
Lloyds Banking Group is to value TSB at as much as 1.44 billion pounds ($2.42 billion) when it floats on the stock market at the end of this month, some 10 percent below its book value in order to act as a loss-leader for future share sales. (http://ift.tt/1pVDTJu)
CENTRICA HOLDS OFF ‘BETTING’ ON FRACKING
British Gas owner Centrica has said it is unlikely to bid for more UK fracking rights when they are offered in coming weeks, underlining the uncertainty over whether shale gas extraction will prove to be viable. (http://ift.tt/1pVDTJw)
UK’S FINANCIAL SERVICES ‘AT RISK’ WITHOUT GREATER EFFORT ON CYBERSECURITY
Britain’s entire financial system is vulnerable to a cyber attack unless there is greater cooperation between the leading banks and law enforcement agencies, senior industry figures have warned. (http://ift.tt/1pVDTJy)
PRIMARK TO TURN 60 MLN STG MALL INTO GIANT STORE
Primark is close to completing an extraordinary to deal to buy an entire shopping centre in Birmingham for 60 million pounds. (http://ift.tt/1qgBvug)
EMPLOYERS NAMED AND SHAMED OVER MINIMUM WAGE
Employers who failed to pay their staff the national minimum wage have been “named and shamed” by the British government as part of a new crackdown. A total of 25 employers were named, including a hire company, a hairdressers, a hotel and a retail outlet. (http://ift.tt/1qgBvui)
The Guardian
THE CO-OPERATIVE BANK MAY ADD NEW SCREENING TESTS TO ITS ETHICAL POLICY
Genetically modified food, data privacy and surveillance techniques are among the new screening tests Britain’s Co-operative Bank is considering adding to its ethical policy, under which it has turned away 1.2 billion pounds of business in the past 20 years. (http://ift.tt/1pVDTJA)
BRITAIN GRIPPED BY FLOTATION FEVER
Britain is on track for a record year for flotations as companies press ahead with initial public offerings despite signs of investor fatigue. (http://ift.tt/1qgBxlN)
The Times
CLEGG VOWS TO BALANCE THE BOOKS BUT WILL KEEP SPENDING ON INVESTMENTS
Nick Clegg, leader of Britain’s embattled junior coalition partner Liberal Democrat party, will attempt to steer a middle course between Labour and the Conservatives today over how to clear the country’s deficit and start clearing the national debt. (http://ift.tt/1pVDTJC)
EDF IN TALKS TO GUARANTEE 10 BLN STG PLAN FOR HINKLEY
EDF Energy is locked in secret negotiations with the Treasury over the fee to secure a crucial 10 billion pound government guarantee for the French group’s Hinkley Point nuclear reactor project. (http://ift.tt/1qgBvuq)
BACANORA MINERALS SEEKS 1 MLN STG IN LONDON FLOAT
A miner with interests in Mexico is planning to float on London’s junior AIM market to fund an assault on the duopoly that controls the market for borate, a substance used in smartphones and nuclear reactors. (http://ift.tt/1pVDTJE)
The Independent
FACTORIES TURN UP THE POWER TO GALVANISE UK RECOVERY
Britain’s increasingly bullish manufacturers expect the industry to outpace the rest of the economy this year, according to a new study, in the latest sign that Britain’s factories are booming despite weaker growth in both Europe and the United States. (http://ift.tt/1qgBvKG)
Fly On The Wall 7:00 AM Market Snapshot
ANALYST RESEARCH
Upgrades
Arcos Dorados (ARCO) upgraded to Buy from Underperform at BofA/Merrill
BioMarin (BMRN) upgraded to Outperform from Neutral at Credit Suisse
Capital One (COF) upgraded to Buy from Neutral at Nomura
Dollar General (DG) upgraded to Buy from Hold at Jefferies
Family Dollar (FDO) upgraded to Buy from Hold at Jefferies
J.M. Smucker (SJM) upgraded to Market Perform from Underperform at Wells Fargo
L Brands (LB) upgraded to Perform from Underperform at Oppenheimer
Novartis (NVS) upgraded to Equalweight from Underweight at Barclays
Principal Financial (PFG) upgraded to Equal Weight from Underweight at Morgan Stanley
Sempra Energy (SRE) upgraded to Buy from Neutral at ISI Group
TC PipeLines (TCP) upgraded to Equalweight from Underweight at Barclays
Downgrades
Anixter (AXE) downgraded to Neutral from Outperform at RW Baird
Enerplus (ERF) downgraded to Sector Perform from Outperform at RBC Capital
First NBC Bank (NBCB) downgraded to Market Perform from Outperform at Keefe Bruyette
Medley Capital (MCC) downgraded to Market Perform from Outperform at JMP Securities
TPG Specialty Lending (TSLX) downgraded to Neutral from Buy at BofA/Merrill
Initiations
B2Gold (BTG) initiated with an Overweight at JPMorgan
DST Systems (DST) initiated with a Buy at BofA/Merrill
Dorian LPG (LPG) initiated with a Buy at UBS
GasLog Partners (GLOP) initiated with a Buy at UBS
Jones Energy (JONE) initiated with a Buy at Brean Capital
PBF Logistics (PBFX) initiated with a Buy at UBS
Time Inc. (TIME) initiated with an Outperform at Wells Fargo
Zendesk (ZEN) initiated with a Neutral at Goldman
COMPANY NEWS
Carl Icahn reported a 9.39% stake in Family Dollar (FDO). Family Dollar said it welcomes input toward the goal of ‘enhancing value’
General Motors (GM) announced three safety recalls, one non-compliance recall
Chesapeake (CHK) board of directors approves spin-off of oilfield services business
Yahoo (YHOO) removing Google (GOOG), Facebook (FB) from Flickr log-ins
EARNINGS
Uranium Energy (UEC) reports Q3 EPS (7c) vs. (5c) a year ago
Jos. A. Bank (JOSB) reports Q1 adjusted EPS 32c, one estimate 40c
NEWSPAPERS/WEBSITES
Tyson (TSN) said to win ‘bidding war’ for Hillshire (HSH), Bloomberg reports (PPC, PF)
Icahn may push for Family Dollar (FDO), Dollar General (DG) merger, Fox Business reports
Barclays (BCS) to face GBP300M fine over Qatar fees, Sunday Times reports
Credit Suisse (CS) weighs spinning off part of U.S fixed income business, FT reports
AT&T (T) floats idea of offering NFL Sunday ticket to wireless clients, WSJ says
Barnes & Noble (BKS), LSI (AVGO) agree to end lawsuit over Nook royalties, Bloomberg reports
Kraft (KRFT) raises prices on its coffee brands approximately 10%, WSJ says
Shell (RDS.A) begins search for new chairman, FT reports
Netflix (NFLX) shareholders to vote on separating chairman, CEO roles, NY Times reports
Apple (AAPL) smartwatch could add $4 to EPS, Barron’s says
Bank of America’s (BAC) $12B settlement could pave the way for growth, Barron’s reports
Office Depot (ODP) shares could jump over 50%, Barron’s says
Raytheon (RTN), Lockheed Martin (LMT), Northrop Grumman (NOC) could see cutbacks, Barron’s says
Morgan Stanley (MS) investors could see a return over 25%, Barron’s says
Danaher (DHR) shares could climb about 25%, Barron’s reports
SYNDICATE
Bay Bank (BYBK) files to sell 9.24M shares of common stock for holders
China Biologic (CBPO) files to sell 475,000 shares for holders
ClubCorp (MYCC) announces 7M share Secondary offering for KSL Capital
Oxigene (OXGN) files to sell 2.92M shares of common stock for holders
Revance Therapeutics (RVNC) files to sell 3M shares of common stock
ZaZa Energy (ZAZA) files to sell 5M shares of common stock for holders
via Zero Hedge http://ift.tt/1mw6PBx Tyler Durden