Month: September 2014

On the heels of yesterday’s almost unbelievable forecasts of the exponential rise in Ebola case counts – and warnings of a 20% chance of Ebola reaching the USA by year-end, WHO officials have confirmed that their previous forecasts of 20,000 cases “does not seem like a lot today.” This has, according to Reuters, the United States announced on Tuesday that it would send 3,000 troops to help tackle the Ebola outbreak as part of a ramped-up response including a major deployment in Liberia, the country where the epidemic is spiralling fastest out of control. Perhaps even more worrisome – for those who explained how ‘contained’ Ebola was – is the CDC’s release of an Ebola checklist warning American healthcare workers “now is the time to prepare.”

WHO warns the scale of the epidemic is unprecedented…

The unprecedented Ebola outbreak in West Africa requires a $1 billion response to keep its spread within the “tens of thousands” of cases, United Nations officials said on Tuesday.

 

The virus has killed 2,461 people, half of the 4,985 infected by the virus, and the toll has doubled in the last month, World Health Organization Assistant Director General Bruce Aylward said.

 

“Quite frankly, ladies and gentlemen, this health crisis we’re facing is unparalleled in modern times,” Aylward told a news conference in Geneva. “We don’t know where the numbers are going on this.”

 

He said the WHO’s previous forecast that the number of cases could reach 20,000 no longer seemed a lot, but the number could be kept within the tens of thousands with “a much faster reponse”.

As Reuters reports, Obama will unveil plans to send 3,000 troops to Africa today,

The president will visit the U.S. Centers for Disease Control in Atlanta on Tuesday to show his commitment. The stepped-up effort he will announce is to include 3,000 military forces and a joint forces command center in Monrovia, capital of Liberia, to coordinate efforts with the U.S. government and other international partners.

 

The U.S. response to the crisis, to be formally unveiled later by President Barack Obama, includes plans to build 17 treatment centers, train thousands of healthcare workers and establish a military control center for coordination, U.S. officials told reporters.

 

…

 

Liberia, a nation founded by descendants of freed American slaves, appealed for U.S. help last week.

 

“Highly infectious people are forced to return home, only to infect others and continue the spread of this deadly virus. All for a lack of international response,” she said.

 

…

 

The plan will “ensure that the entire international response effort is more effective and helps to … turn the tide in this crisis,” a senior administration official told reporters on Monday, ahead of the president’s trip.

 

“The significant expansion that the president will detail … really represents … areas where the U.S. military will bring unique capabilities that we believe will improve the effectiveness of the entire global response,” he said.

 

…

 

Obama’s administration has requested an additional $88 million from Congress to fight Ebola, including $58 million to speed production of the ZMapp experimental antiviral drug and two Ebola vaccine candidates.

 

Officials said the Department of Defense had requested to reallocate $500 million in funds from fiscal 2014 to help cover the costs of the humanitarian mission.

And then The Washingotn Examiner reports,

The Centers for Disease Control and Prevention, warning hospitals and doctors that “now is the time to prepare,” has issued a six-page Ebola “checklist” to help healthcare workers quickly determine if patients are infected.

 

 

“Every hospital should ensure that it can detect a patient with Ebola, protect healthcare workers so they can safely care for the patient, and respond in a coordinated fashion,” warns the CDC.

 

“While we are not aware of any domestic Ebola Virus Disease cases (other than two American citizens who were medically evacuated to the United States), now is the time to prepare, as it is possible that individuals with EVD in West Africa may travel to the United States, exhibit signs and symptoms of EVD, and present to facilities,” it adds.

*  *  *
Contained?

via Zero Hedge http://ift.tt/1uDazIV Tyler Durden

On the heels of yesterday’s almost unbelievable forecasts of the exponential rise in Ebola case counts – and warnings of a 20% chance of Ebola reaching the USA by year-end, WHO officials have confirmed that their previous forecasts of 20,000 cases “does not seem like a lot today.” This has, according to Reuters, the United States announced on Tuesday that it would send 3,000 troops to help tackle the Ebola outbreak as part of a ramped-up response including a major deployment in Liberia, the country where the epidemic is spiralling fastest out of control. Perhaps even more worrisome – for those who explained how ‘contained’ Ebola was – is the CDC’s release of an Ebola checklist warning American healthcare workers “now is the time to prepare.”

WHO warns the scale of the epidemic is unprecedented…

The unprecedented Ebola outbreak in West Africa requires a $1 billion response to keep its spread within the “tens of thousands” of cases, United Nations officials said on Tuesday.

 

The virus has killed 2,461 people, half of the 4,985 infected by the virus, and the toll has doubled in the last month, World Health Organization Assistant Director General Bruce Aylward said.

 

“Quite frankly, ladies and gentlemen, this health crisis we’re facing is unparalleled in modern times,” Aylward told a news conference in Geneva. “We don’t know where the numbers are going on this.”

 

He said the WHO’s previous forecast that the number of cases could reach 20,000 no longer seemed a lot, but the number could be kept within the tens of thousands with “a much faster reponse”.

As Reuters reports, Obama will unveil plans to send 3,000 troops to Africa today,

The president will visit the U.S. Centers for Disease Control in Atlanta on Tuesday to show his commitment. The stepped-up effort he will announce is to include 3,000 military forces and a joint forces command center in Monrovia, capital of Liberia, to coordinate efforts with the U.S. government and other international partners.

 

The U.S. response to the crisis, to be formally unveiled later by President Barack Obama, includes plans to build 17 treatment centers, train thousands of healthcare workers and establish a military control center for coordination, U.S. officials told reporters.

 

…

 

Liberia, a nation founded by descendants of freed American slaves, appealed for U.S. help last week.

 

“Highly infectious people are forced to return home, only to infect others and continue the spread of this deadly virus. All for a lack of international response,” she said.

 

…

 

The plan will “ensure that the entire international response effort is more effective and helps to … turn the tide in this crisis,” a senior administration official told reporters on Monday, ahead of the president’s trip.

 

“The significant expansion that the president will detail … really represents … areas where the U.S. military will bring unique capabilities that we believe will improve the effectiveness of the entire global response,” he said.

 

…

 

Obama’s administration has requested an additional $88 million from Congress to fight Ebola, including $58 million to speed production of the ZMapp experimental antiviral drug and two Ebola vaccine candidates.

 

Officials said the Department of Defense had requested to reallocate $500 million in funds from fiscal 2014 to help cover the costs of the humanitarian mission.

And then The Washingotn Examiner reports,

The Centers for Disease Control and Prevention, warning hospitals and doctors that “now is the time to prepare,” has issued a six-page Ebola “checklist” to help healthcare workers quickly determine if patients are infected.

 

 

“Every hospital should ensure that it can detect a patient with Ebola, protect healthcare workers so they can safely care for the patient, and respond in a coordinated fashion,” warns the CDC.

 

“While we are not aware of any domestic Ebola Virus Disease cases (other than two American citizens who were medically evacuated to the United States), now is the time to prepare, as it is possible that individuals with EVD in West Africa may travel to the United States, exhibit signs and symptoms of EVD, and present to facilities,” it adds.

*  *  *
Contained?

via Zero Hedge http://ift.tt/1uDazIV Tyler Durden

Russia could care less whether Ukraine signs meaningless accession agreements with Europe (as it just did) because at the end of the day, Ukraine needs Russia’s gas (if only for the next 4-6 years until Hunter Biden develops Ukraine’s shale deposits and the Qatar gas pipeline finally crosses Syria). Russia, however, is very angry when NATO gets ever closer to its borders, which it just did when earlier today, more than 1,000 troops from 15 NATO and non-NATO countries, including the US of course, are taking part in a military exercise in Ukraine.

The good news: The “Rapid Trident” exercise is happening near Lviv on the Polish-Ukrainian border, around 1,000 miles from the conflict in east Ukraine.

The bad news: 1,000 miles will hardly be considered enough by the Kremlin which will see this latest incursion by NATO ever closer to its border as another direct threat and a hint of what will happen if Ukraine is allowed to progress on its path of demanding entry into the military alliance.

From EuroNews:

Ukrainian army colonel, Oleksandr Syvak, said: “This year’s military exercise will concentrate on the particular aspects of the undeclared or “hybrid” war, which is happening in the east of Ukraine. This will be be taken into consideration during the military drill. The Ukrainian militaries will also share their experiences gained during the anti-terrorist operation”

 

Moscow has previously condemned what it calls NATO’s expansion in eastern Europe close to Russia’s borders.

 

In August, Ukraine’s prime minister said he would ask parliament to put the country on a path towards NATO membership.

 

At the weekend, the Ukrainian Defence Minister admitted NATO countries had begun arming his nation in the fight against the rebels – something NATO members had previously denied.

Euronews correspondent Mykhaylo Dubyak in Ukraine says: “In the Rapid Trident exercises, NATO and Ukrainian troops will train in how to react to an ambush and convoy operations, amongst other things. It will raise the combat capability of the Ukrainian army and may be used in operations in Donbas.”

Well, at least nobody is even hiding any more that NATO is both implicitly and explicitly involved in the Ukraine war, which has now surpassed simple proxy status and is in effect one between Russia and the West, quite directly.

And now we await as the Kremlin reveals yet another, massive “surprise” military drill just off the Ukraine border to make it quite clear how all this will end unless the warmongering puppetmasters operating behind the scenes are put in their place.

via Zero Hedge http://ift.tt/1qU7u5T Tyler Durden

• Thank you market Chief Risk Officer Bernanke/Yellen: Calpers to Exit Hedge Funds, Divest $4 Billion Stake (BBG)
• World stocks hit one-month low, caution ahead of Fed (Reuters)
• U.S. Efforts to Build Coalition Against Islamic State in Iraq, Syria Are Hampered by Sectarian Divide (WSJ)
• Wildfires rage in California drought, hundreds forced to flee (Reuters)
• Time to throw away some more good money: Sears Borrows $400 Million From Lampert’s ESL Investments (BBG)
• United Offers $100,000 Buyouts to Flight Attendants (BBG)
• Biggest Banks Said to Overhaul FX Trading After Scandals (BBG)
• You mean you have to pay? Administration threatens to cut off ObamaCare subsidies to 360,000 (The Hill)
• RBS Said to Dismiss Most of Team Overseeing Central Europe Debt (BBG) they will be hired by the ECB
• Boeing-Lockheed venture said teaming with Bezos on rocket engine (Reuters)
• German Investor Confidence Falls to Weakest Since 2012 (BBG)
• Blackstone Group seeks to raise $16 billion for its latest fund (WSJ)
• U.K. Inflation Slows to Match 5-Year Low on Food Prices (BBG)
• Ditching Monarchy Is Step Too Far for Scots Nationalists (BBG)
• European Stocks Fall to Two-Week Low Before Fed Meeting (BBG)
• How a Facebook Group Persuaded Coca-Cola to Rerelease Surge (BBG)

 

Overnight Media Digest

WSJ

* The U.S. military will deploy about 3,000 personnel to West Africa to coordinate international aid, build treatment centers and train health-care workers as part of President Barack Obama’s offensive against a rapidly worsening Ebola outbreak, a senior administration official said Monday. (http://on.wsj.com/1sdLCzh)

* Anheuser-Busch InBev NV is talking to banks about financing a potential megadeal, perhaps reaching 75 billion pounds ($121.67 billion), to buy global beer rival SABMiller Plc , according to a person familiar with the matter. (http://on.wsj.com/1m9VAon)

* Citigroup Inc released more details about what a severe recession might look like in coming years and how it could affect the firm, as large U.S. banks run themselves through tests to prepare for next year’s Federal Reserve checkup. (http://on.wsj.com/1wn0LlK)

* It’s no secret that many physicians hate the electronic-medical-records systems they use, saying they are cumbersome, poorly designed and detract from patient care. Amplifying those concerns, the American Medical Association on Tuesday is calling for a major overhaul of EMR systems to make usability and high-quality patient care a higher priority. (http://on.wsj.com/1tZAFTO)

* The largest U.S. public pension plan is getting out of hedge funds as part of an effort to simplify its assets and reduce costs, a retreat that could prompt other cities and states to consider similar moves. The California Public Employees’ Retirement System said Monday it would shed its entire $4 billion investment in hedge funds over the next year. (http://on.wsj.com/1DdcZ57)

* Microsoft Corp is hoping a cult videogame built around virtual blocks will help fix the company’s real-world problems, even if the brains behind the brand aren’t sticking around. The software giant’s $2.5 billion deal to buy Mojang AB, maker of the Minecraft videogame, gives Microsoft an entertainment property whose devoted fans dress up like game characters, pack YouTube with how-to guides and rush to sign up for Minecraft-themed summer camps. (http://on.wsj.com/1BHM1km)

* Sears Holdings Corp is borrowing $400 million from Chief Executive Edward Lampert’s hedge fund, giving the retailer an infusion for the holidays after it burned through cash over the summer. (http://on.wsj.com/1BHNIyc)

* Alibaba Group Holding Ltd <IPO-BABA.N>, which is in the middle of marketing what could be the world’s largest initial public offering, now thinks it could do a little better. The Chinese e-commerce firm has raised the deal’s price range to $66 to $68 per share, up from the current $60 to $66 a share. Alibaba didn’t increase the number of shares that can potentially be sold. (http://on.wsj.com/1uAhfrf)

 

FT

Alibaba Group Holding Ltd <IPO-BABA.N> has considerably boosted the amount it plans to raise in its listing on Friday to $66 to $68 after high investor demand in the Chinese e-commerce company.

The largest U.S public pension fund Calpers said it plans to terminate its hedge fund programme, due to a severe blow to a sector that has brought increasing scepticism over its returns. At a time when the future of North Sea oil has become a significant battleground on account of the debate on Scottish independence, ConocoPhillips, the U.S. energy group is looking to sell its stake in the United Kingdom’s largest oilfield. Berlin is pushing Google Inc to disclose the details of the search engine company’s secret formula that has allowed it to monopolise web search in Europe, in a move that is likely to be welcomed by competitors and firmly repelled by the U.S tech company.

Microsoft Corp Chief Executive Officer Satya Nadella’s plans to buy Swedish games company Minecraft for $2.5 billion, his first big acquisition, was probably not what the investors at Wall Street had in mind when they were looking for a statement about Nadella’s plans for his company.

 

NYT

* The California Public Employees’ Retirement System, United States’ largest pension fund, will eliminate all of its hedge fund investments over the next year on concerns that investments are too complicated and expensive. The pension fund, which oversees $300 billion, said on Monday that it would liquidate its positions in 24 hedge funds and six hedge fund-of-funds – investments that total $4 billion and more than 1 percent of its total investments under management. (http://nyti.ms/1tZbfpm)

* The Federal Communications Commission will hold a round-table discussion on Tuesday to examine whether proposed net neutrality rules should cover mobile broadband. The battle lines will probably be clear: the cellphone companies against nearly everyone else. (http://nyti.ms/1phqEh9)

* The death toll from General Motors Co faulty ignition switch is rising. From the time it began recalling cars for the defect over the winter, G.M. has never publicly revised its original assessment that 13 people died in accidents linked to the problem, saying only that the number could rise. But on Monday, the lawyer GM hired to develop a program to compensate victims raised the automaker’s tally by n
early 50 percent. (http://nyti.ms/1AQQKxD)

* With demand for the Alibaba Group Holding’s stock market debut proving even stronger than expected, the Chinese e-commerce giant has done the only logical thing: set its fund-raising sights even higher. The company raised the price range for its initial public offering to $66 to $68 for each American depositary share, up from $60 to $66, according to a regulatory filing on Monday, pushing up its potential haul from the stock sale to as much as $21.8 billion. (http://nyti.ms/1r1oHuI)

* New York State’s attorney general filed an antitrust lawsuit on Monday seeking to stop Actavis Plc from forcing patients with Alzheimer’s disease to switch to a new version of a widely used drug. The lawsuit contends that the switch is designed to blunt competition from low-priced generic versions of the medication. (http://nyti.ms/YN5QJ1)

* As the city announced a final settlement on Monday with Syncora Guarantee Inc, a creditor that had been one of its chief adversaries, other creditors pressed their opposition to Detroit’s plans to emerge from bankruptcy. (http://nyti.ms/ZnvoMZ)

* Miscues by university management and more tepid investment returns have pulled down Harvard’s results over the last decade, culminating in the June resignation of Jane Mendillo, the chief executive of the Harvard Management Company, who started just before the market collapse in July 2008. Medillo’s performance illustrates not only the vicissitudes of investing but also the revolving-door aspect of an operation like the Harvard endowment, where retaining top talent can be difficult because of the intense scrutiny and the availability of bigger paychecks elsewhere. (http://nyti.ms/ZnvyUu)

 

Canada

THE GLOBE AND MAIL

** Prime Minister Stephen Harper is promising tax cuts for Canadians in a matter of months, using an election-style rally to fire up conservative troops as Parliament returns and signalling the campaign to win in 2015 has begun in earnest. (bit.ly/XtYZmB)

** Canada is donating C$2.5 million worth of the specialized medical gear used to protect health-care workers who are treating Ebola patients in West Africa, the federal government announced late Monday. (bit.ly/1uCxELH)

** Wind Mobile is poised to announce a deal that will give it the financial backing it needs to become a viable fourth player in Canada’s wireless industry. The company’s Canadian founder is set to buy out Wind’s foreign owner and recapitalize the wireless carrier with the backing of several financial players. (bit.ly/1mamnkA)

NATIONAL POST

** Newly sworn-in Alberta Premier Jim Prentice has appointed a new but smaller cabinet, including two people who aren’t members of the legislature. The new cabinet has 16 ministers and three associate ministers, in addition to the premier, down from 19 ministers and 10 associate ministers under former premier Alison Redford. (bit.ly/1uF0477)

** John Tory announced on Monday he is pulling out of three mayoral debates this week, as his campaign re-calibrates with Doug Ford in the race. (bit.ly/1DdYIoP)

** Nathan Jacobson, the self-described “radioactive” businessman close to senior conservatives, cleared his name Monday in a San Diego courtroom. Justice Janis Sammartino accepted a deal reached between federal prosecutors and Jacobson’s lawyer allowing Jacobson to withdraw his 2008 guilty plea for money laundering in connection with an online pharmacy. (bit.ly/1nZGddT)

 

China

SECURITIES TIMES

– China’s securities regulator plans to allow asset management units of brokerages to sell products that channel money into private equity.

– Nine government-owned companies in Yunnan province, including Yuntianhua Group and Yunnan Coal Chemical Industry Group Co, have publicly solicited outside investment into 33 subsidiary projects, as part of China’s efforts to diversify the ownership structure of state-owned enterprises.

CBN

– Chinese film producer Huayi Brothers Media Corp said it would invest $130 million to set up a unit in the United States.

CHINA SECURITIES NEWS

– The China Securities Regulatory Commission has approved 11 companies to pursue initial public offerings.

SHANGHAI DAILY

– Officials from China’s government departments and state-owned firms have been withdrawing from executive MBA programmes after the government banned pricey training courses in July.

 

Britain

The Times

FRENCH TV FURY OVER ASSAULT BY NETFLIX France’s heavily regulated television industry was in uproar yesterday amid the launch of Netflix Inc, the American video streaming service. Critics say the service threatens to destroy France’s so-called cultural exception – the notion that it is resistant to Anglo-Saxon entertainment. (http://thetim.es/1BHdxhX)

MCDONALD’S EASES MCMUFFIN RULES AMID SALES DECLINE The world’s biggest fast-food chain, McDonald’s Corp is considering a new menu segment to lure customers during a time of day, between the breakfast rush and lunch hour, when its restaurants often are quiet. The idea has arisen after the company’s worst global same-store sales drop in 10 years, in which Britain provided a single glimmer of hope. (http://thetim.es/1wmFZ5B)

The Guardian

OECD SLASHES GROWTH FORECASTS FOR LEADING ECONOMIES

The global economy faces headwinds from a sluggish eurozone and rising political tensions, including the uncertain outcome of Scotland’s independence referendum, a leading thinktank has warned. The Organisation for Economic Co-operation and Development slashed its growth forecasts for advanced economies and called on the European Central Bank to use quantitative easing to shore up the eurozone. (http://bit.ly/1s41wSx)

COCA-COLA TO SPONSOR LONDON EYE The Coca-Cola Co is to become the new sponsor of the London Eye after signing a deal to replace France’s EDF Energy Plc. The capital’s giant ferris wheel has been a leading tourist attraction since it was introduced in 2000, when it was known as the Millennium Wheel. It was previously sponsored by British Airways before becoming the EDF Energy London Eye in 2011. (http://bit.ly/1q9iKXd)

The Telegraph SCOTTISH REFERENDUM: DAVID CAMERON BEGS SCOTS NOT TO LEAVE THE UK British Prime Minister David Cameron begged the people of Scotland not to leave the United Kingdom as he promised them that he “won’t be here forever.” In a final plea before Thursday’s referendum, the prime minister warned Scottish voters in a speech in Aberdeen that separation would be a “painful divorce.” (http://bit.ly/1uEheli)

ROW BETWEEN PHONES 4U AND VODAFONE OVER CAUSE OF COLLAPSE A bitter row over the collapse of Phones 4U broke out on Monday when Vodafone Group Plc strongly rejected claims it acted improperly in pulling out of the chain, pinning the blame instead on the decision by its private equity owners to load it with high-interest debt and collect a 200 million pounds ($324.54 million) windfall. (http://bit.ly/1m9phWx)

Sky News CBI DENIES GOVT PRESSURE ON SCOTLAND VOTE The president of the Confederation of British Industry,
Michael Rake, has insisted no pressure has been exerted on businesses by the government to speak out on the Scottish referendum debate. (http://bit.ly/1qEorT8)

ALIBABA FLOTATION ON COURSE FOR WORLD RECORD China’s biggest online retailer appears on course to break the record for the biggest share sale of all time this week. Expectations are growing that Alibaba Holding Group Ltd <IPO-BABA.N> will raise its price target above the planned $60 to $66 per-share range – with sources, said to be familiar with the deal, telling Reuters there was “overwhelming” demand for the stock. (http://bit.ly/1tYuC1S)

The Independent

MICROSOFT BUYS MINECRAFT STUDIO MOJANG FOR $2.5 BLN Microsoft Corp has announced that it has purchased Mojang, the Swedish studio behind the popular game Minecraft, for $2.5 billion (http://ind.pn/1AQQ6An)

SCOTTISH INDEPENDENCE: COMMERZBANK SAYS WORST CASE ECONOMIC SCENARIOS ‘EXAGGERATED’ Days after Deutsche Bank reignited the Scottish “no” campaign with terrifying fears that a vote for independence would plunge Scotland back into a 1930s style depression, a rival German financial company, Commerzbank AG, has said such speculation has been overdone. (http://ind.pn/1AQQdMq)

 

 

Fly On The Wall Pre-market Buzz

ECONOMIC REPORTS

Domestic economic reports scheduled for today include:
Producer Price Index for August at 8:30–consensus flat with prior month

ANALYST RESEARCH

Upgrades

21Vianet (VNET) upgraded to Outperform from Sector Perform at Pacific Crest
Anglo American (AAUKY) upgraded to Buy from Hold at Deutsche Bank
AngloGold (AU) upgraded to Overweight from Neutral at HSBC
Approach Resources (AREX) upgraded to Neutral from Underperform at Sterne Agee
Athlon Energy (ATHL) upgraded to Buy from Neutral at BofA/Merrill
BE Aerospace (BEAV) upgraded to Overweight from Neutral at JPMorgan
Duke Energy (DUK) upgraded to Outperform from Market Perform at Wells Fargo
Microsoft (MSFT) assumed with an Outperform from Sector Perform at RBC Capital
Pearson (PSO) upgraded to Overweight from Equal Weight at Morgan Stanley
SYNNEX (SNX) upgraded to Buy from Hold at Stifel
Tableau (DATA) upgraded to Outperform from Neutral at Credit Suisse
Terex (TEX) upgraded to Buy from Hold at Stifel

Downgrades

Adobe (ADBE) assumed with a Sector Perform from Outperform at RBC Capital
Analogic (ALOG) downgraded to Hold from Buy at Brean Capital
Bankrate (RATE) downgraded to Sell from Hold at Topeka
Con-way (CNW) downgraded to Neutral from Outperform at RW Baird
Cummins (CMI) downgraded to Market Perform from Outperform at Wells Fargo
Laredo Petroleum (LPI) downgraded to Neutral from Buy at BofA/Merrill
Occidental Petroleum (OXY) downgraded to Equal Weight from Overweight at Barclays

Initiations

ACI Worldwide (ACIW) initiated with a Neutral at Sterne Agee
Ardmore Shipping (ASC) initiated with a Buy at MLV & Co.
Benefitfocus (BNFT) initiated with an Outperform at RBC Capital
Boston Beer (SAM) initiated with an Outperform at Cowen
Brown Forman initiated with an Outperform at Cowen
Capital Product (CPLP) initiated with a Buy at Deutsche Bank
Coca-Cola (KO) initiated with a Market Perform at Cowen
Concur (CNQR) initiated with an Outperform at RBC Capital
Constellation Brands (STZ) initiated with a Market Perform at Cowen
Craft Brew (BREW) initiated with an Outperform at Cowen
Diana Shipping (DSX) initiated with a Buy at Deutsche Bank
Dr Pepper Snapple (DPS) initiated with a Market Perform at Cowen
DryShips (DRYS) initiated with a Buy at Deutsche Bank
Dynagas LNG (DLNG) initiated with a Buy at Deutsche Bank
Global Payments (GPN) initiated with a Neutral at Piper Jaffray
Heartland Payment (HPY) initiated with a Buy at Sterne Agee
Intuit (INTU) initiated with an Outperform at RBC Capital
Lionsgate (LGF) initiated with a Buy at ISI Group
MasterCard (MA) initiated with a Buy at Sterne Agee
MasterCard (MA) initiated with an Overweight at Piper Jaffray
Molson Coors (TAP) initiated with an Outperform at Cowen
Monster Beverage (MNST) initiated with a Market Perform at Cowen
Navios Acquisition (NNA) initiated with a Buy at Deutsche Bank
Net 1 UEPS (UEPS) initiated with a Buy at Sterne Agee
NetSuite (N) initiated with an Outperform at RBC Capital
Oracle (ORCL) assumed with a Sector Perform at RBC Capital
PepsiCo (PEP) initiated with an Outperform at Cowen
SAP (SAP) initiated with a Sector Perform at RBC Capital
SEI Investments (SEIC) initiated with a Buy at Sterne Agee
Scorpio Bulkers (SALT) initiated with a Buy at Deutsche Bank
Seaspan (SSW) initiated with a Buy at Deutsche Bank
StealthGas (GASS) initiated with a Buy at Deutsche Bank
Teekay Tankers (TNK) initiated with a Buy at Deutsche Bank
Tesla (TSLA) initiated with a Buy at ISI Group
Textainer (TGH) initiated with a Hold at Deutsche Bank
Total System (TSS) initiated with a Neutral at Sterne Agee
Tsakos Energy (TNP) initiated with a Buy at MLV & Co.
Ultimate Software (ULTI) initiated with an Outperform at RBC Capital
Ultratech (UTEK) initiated with an Outperform at Imperial Capital
Vantiv (VNTV) initiated with a Buy at Sterne Agee
Visa (V) initiated with a Buy at Sterne Agee
Visa (V) initiated with an Overweight at Piper Jaffray
WEX Inc. (WEX) initiated with a Buy at Sterne Agee
Western Union (WU) initiated with a Neutral at Sterne Agee
Workday (WDAY) initiated with an Outperform at RBC Capital
Yelp (YELP) initiated with a Neutral at RW Baird
zulily (ZU) initiated with an Outperform at RW Baird

COMPANY NEWS

Valeant (VRX), Pershing Square, Allergan (AGN) settled pending litigation before DE Court. Pursuant to the settlement, Allergan has agreed to unconditionally call and hold a special meeting of its shareholders on December 18
Humana (HUM) announced $2B share repurchase authorization
Airbus (EADSY) Defense, Space said it will sell some divisions, including Fairchild Controls, Rostock System-Technik, AvDef, ESG and Atlas Elektronik
In a severely adverse scenario Citigroup’s (C) total risked based capital ratio would be 10.9% through Q216; For projected stressed capital ratios, JPMorgan (JPM) reported that Tier 1 common ratio would be a minimum of 8.4%, Tier 1 leverage ratio would be a minimum of 6.4%, and Tier 1 risk-based capital ratio would be a minimum of 8.7%
AstraZeneca (AZN), Eli Lilly (LLY) to jointly develop, commercialize AZD3293

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Analogic (ALOG)

Companies that missed consensus earnings expectations include:
Full Circle Capital (FULL), Ixia (XXIA), Student Transportation (STB), Majesco (COOL)

Espey Mfg (ESP) reports Q4 EPS (31c) vs. $1.02 a year ago
Analogic (ALOG) sees FY15 revenue to grow mid single-digits , consensus $572.12M

NEWSPAPERS/WEBSITES

Actavis (ACT), Forest Labs subsidiary sued by NY attorney general, Reuters says
Google (GOOG) called on by Berlin to disclose search engine formula, FT reports
Boeing (BA), Lockheed (LMT) ally with Amazon (AMZN) CEO on rocket engine, Reuters says
Boeing (BA) may beat out SpaceX for NASA contract to ferry astronauts, WSJ reports
Qualcomm (QCOM) accused of bribing Chinese official, WantChinaTimes reports
ConocoPhillips (COP) auctioning 24% stake in the Clair oilfield, FT reports
Pratt & Whitney (UTX) close to engine supply deal with Pentagon, WSJ reports (LMT, NOC, BAESY)
iPhone 6/6 Plus may suffer similar iPhone 5s/5c inventory issu
es, DigiTimes says (AAPL)

SYNDICATE

Alcoa (AA) announces proposed offering of 25M depositary shares
Blueknight Energy Partners (BKEP) files to sell 8.5M shares
Gastar Exploration (GST) offers 17M shares of common stock
Lehigh Gas (LGP) files to sell 3.6M common units representing limited partners
Viper Energy (VNOM) 3.5M share Secondary priced at $28.50

via Zero Hedge http://ift.tt/1qb7bPd Tyler Durden

If over the weekend we got some terrible economic news out of China, then overnight it was turn for a major disappointment in capital flows, when Chinese Foreign Direct Investment in August crashed by 14%, far below the 0.8% increase expected, attracting just $7.2 billion in FDI, and the lowest in four years. This once again sparked fears of a Chinese hard landing and sent the Shanghai Composite tumbling 1.82%, the biggest drop in six months, after it had been up some 0.2% before the data release. The slump in FDI to -14.0% vs. Exp. +0.8% was a direct result of the anti-trust clampdown on multi-national corporations operating in China after scandals have engulfed the likes of GlaxoSmithKline in recent months.

In addition to China, there was the German ZEW Survey, which while beating expectations of a 5.0 print, dropped from 8.6 to 6.9 in August, the lowest since 2012. In fact, the gauge has decreased every month since December when it reached a seven-year high. And while there is not much other news today ahead of the blitz assault of data later in the week, including the Fed tomorrow, the TLTRO announcement on Thursday and the Scottish referendum results and the BABA IPO on Friday, we are stunned futures aren’t as usual, soaring as all the data that was available came out with the algos’ favorite flavor: bad.

As noted yesterday it wasn’t just China: Asian equities suffered their longest losing streak in 12 years now that fears of a hiking Fed are finally starting to manifest themselves in equity outflows. The weakness in China, coupled with caution ahead of tomorrow’s FOMC policy statement has weakened emerging markets, with emerging markets on track for the ninth consecutive daily decline – the longest losing streak since September 2001. Asian stocks fall  with the Kospi outperforming and the Shanghai Composite underperforming. MSCI Asia Pacific down 0.5% to 144.3. Nikkei 225 down 0.2%, Hang Seng down 0.9%, Kospi up 0.3%, Shanghai Composite down 1.8%, ASX down 0.5%, Sensex down 1.2%. 0 out of 10 sectors rise with staples, industrials outperforming and financials, energy underperforming.

European equities trade lower, with a poor showing from Chinese equities weighing on sentiment from the open. Furthermore, poor earnings updates from UK retailer ASOS (-10.5%) and travel firm Thomas Cook (-5.2%) coupled with Air France’s (-3.6%) warning that they may not break even this year led to losses of approx. 0.75% across the board. 21% of Stoxx 600 members gain, 77.3% decline. Eurostoxx 50 -0.3%, FTSE 100 -0.4%, CAC 40 -0.4%, DAX -0.2%, IBEX -0.4%, FTSEMIB -0.2%, SMI +0%.

In terms of today we have a fairly light calendar in the US ahead of Yellen’s press conference tomorrow. US PPI will be the only data of note. Data watchers will likely be focusing on Europe today with the German ZEW and UK CPI/PPI reports being the notable releases.

Market Wrap

All Stoxx 600 sectors fall. The U.K. and French markets are the worst-performing larger bourses, the Swiss the best. The euro is little changed against the dollar. German 10yr bond yields fall; Greek yields increase. German investor confidence decreases to weakest since 2012. Commodities little changed, with natural gas, zinc underperforming and corn outperforming. U.S. PPI due later.

• S&P 500 futures down 0.1% to 1975
• Stoxx 600 down 0.5% to 342.4
• US 10Yr yield down 3bps to 2.56%
• German 10Yr yield down 2bps to 1.05%
• MSCI Asia Pacific down 0.5% to 144.3
• Gold spot up 0.4% to $1238.6/oz

Bulletin Headline Summary from Bloomberg and RanSquawk

• Fears of a Chinese hard landing resurface as very poor Foreign Direct Investment threatens an H2 recovery
• Emerging markets on track for the longest daily losing streak in over a decade as traders focus on tomorrow’s FOMC policy statement
• Markets look beyond today’s transitory data to the slew of risk events later this week, including Scotland’s referendum, BoE Minutes, the ECB’s first TLTRO and Alibaba’s IPO
• Treasuries gain as Federal Reserve begins meeting in Washington, with statement due at 2pm tomorrow; policy makers may adopt more hawkish stance, remove “considerable time” language from statement, strategists say.
• Yellen is likely to raise rates only gradually between 2015 and 2017 as inflation remains muted, according to a Bloomberg survey of economists
• German investor confidence dropped to the weakest in 21 months amid rising political tension in Europe, with the ZEW index falling to 6.9 in September from 8.6 in August
• Ukraine traded accusations with pro-Russian separatists over the biggest outbreak of hostilities since a truce was signed 11 days ago; the U.S. and other NATO members yesterday began military exercises in the country
• Prime Minister David Cameron made a final plea to Scotland’s voters, urging them to step back from an illusory “dream” of risk-free independence and avoid the irreversible breakup that would come with a “yes” vote
• Foreign direct investment into China, a gauge of external confidence, slumped to a four-year low amid antitrust probes into multinational companies that have spurred a letter of complaint from the U.S.
• The International Organization of Securities Commissions will present criteria for marketable ABS to finance ministers from the Group of 20 nations this week, said Chairman Greg Medcraft; Iosco wants to help create standards that would encourage non-bank investors to buy
• RBS dismissed most of its team overseeing debt capital markets in central and eastern Europe, Middle East and Africa amid a review of operations outside the U.K., according to two people with knowledge of the matter
• The world’s biggest banks are overhauling how they trade currencies to regain the trust of customers and preempt regulators’ efforts to force changes on an industry tarnished by allegations of manipulation
• The California Public Employees’ Retirement System plans to divest the entire $4b that it invested with hedge funds, saying they’re too expensive and complex
• About 115,000 people who signed up for Obamacare and may not be legal residents of the U.S. will lose their insurance coverage at the end of the month, the government said.
• Sovereign yields mostly lower. Asian stocks fall, European stocks, U.S. equity-index futures lower. WTI crude lower, copper little changed, gold higher

US Event Calendar

• 8:30am: PPI Final Demand m/m, Aug., est. 0.0% (prior 0.1%)
  • PPI Ex Food and Energy m/m, Aug., est. 0.1% (prior 0.2%)
  • PPI Final Demand y/y, Aug., est. 1.8% (prior 1.7%)
  • PPI Ex Food and Energy y/y, Aug., est. 1.8% (prior 1.6%)
• 2:00pm: Net Long-term TIC Flows, July, est $25b (prior – $18.7b)
  • Total Net TIC Flows, July (prior -$153.5b) Central Banks
• 11:00am: POMO Fed to purchase $2b-$2.5b in 2021-2024 sector

ASIA

Chinese equities slumped overnight, with the Shanghai Composite falling at the fastest rate in six-months (-1.8%) on heavy volume as particularly poor Foreign Direct Investment numbers renewed concerns of a hard landing in the Chinese economy. The slump in FDI to -14.0% vs. Exp. +0.8% was a direct result of the anti-trust clampdown on multi-national corporations operating in China after scandals have engulfed the likes of GlaxoSmithKline in recent months. The weakness in China, coupled with caution ahead of tomorrow’s FOMC policy statement has weakened emerging markets, with emerging markets on track for the ninth consecutive daily decline – the longest losing streak since September 2001.

FIXED INCOME

Bund futures benefited from the open, as a soft start in European equiti
es and residual concerns of Chinese growth pushed Germany’s 10yr yields below 1.05%. As was the case last week, Spanish bonds have underperformed as Catalan President Artur Mas continues to push for a referendum, heightening fears that Scotland’s independence campaign is inspiring other separatist movements to break-up historic political unions. A stronger-than-forecast German ZEW Survey (6.9 vs. Exp. 5.0) failed to dampen core fixed income, as a weak expectations component and further warnings on Russia took the shine off the headline.

EQUITIES

European equities trade lower, with a poor showing from Chinese equities weighing on sentiment from the open. Furthermore, poor earnings updates from UK retailer ASOS (-10.5%) and travel firm Thomas Cook (-5.2%) coupled with Air France’s (-3.6%) warning that they may not break even this year led to losses of approx. 0.75% across the board.

Looking ahead, Wall Street is primed for a lower open, with stock futures negative across the board. Large-cap stock Adobe are due to report earnings after-market.

FX

GBP fell throughout the morning, with a large option expiry (2.1bln) in EUR/GBP at 0.7975 failing to draw attention as Scottish independence fears prompted traders to continue to shy away from the currency. UK CPI confirmed expectations of falling inflation in the UK, however markets were primed for a lower than expected reading due to the ongoing price war between the UK’s supermarkets. As such, GBP/USD saw a minor relief rally at the lows of 1.6162 on the 1.5% vs. Exp. 1.5% release.

Commodity related currencies trade softer, with AUD approaching yesterday’s multi-month lows as Chinese growth concerns re-enter the fray after poor FDI data overnight. Later today, BoC’s Poloz speaks on the topic of free-floating currencies, which will be closely eyed for any CAD-sensitive comments.

COMMODITIES

WTI and Brent crude futures trade in minor negative territory, as expectations of a recovery in China’s H2 economic performance are dampened by the slump in FDI overnight. After-market today, the API inventories will be closely eyed ahead of tomorrow’s DoE Estimates. In the metals markets, spot gold trades slightly higher on mild short-covering as softer stocks lead traders to take profits. COMEX copper also trades stronger as the threat of strike action at Chile’s Escondida mine threatens South American output.

* * *

DB’s Jim Reid concludes the overnight recap

In the absence of any standout themes or developments the market seems to be cautiously positioned ahead of the two big events (FOMC meeting tomorrow and Scotland’s referendum on Thursday) this week. Indeed yesterday proved to be a somewhat uninspiring day for risk assets with equities, credit and commodities all finishing moderately weaker. Right on the heels of the weak Chinese data over the weekend, the disappointing US data flow and OECD’s growth estimates downgrades yesterday probably clearly didn’t help (more below). With all that we saw the S&P 500, NASDAQ, Stoxx600, CAC and the IBEX close -0.07%, -1.07%, -0.10% and -0.44%, respectively. IG credit spreads were around 1-2bp wider on both sides of the pond. The Dollar index was a touch lower but failed to put an end to the slide in commodities. The CRB index declined once more yesterday to close lower for its 8th consecutive day and is now nearly 10% off its recent highs in June. Brent touched an intraday low of US$97.04/bbl before recovering back up to around US$98/bbl.

On the data theme, the US Industrial Production (-0.1% v +0.3% expected) numbers were far from being impressive. The combination of this and the weak IP data from China perhaps renewed some growth concerns. On the positive side, the Empire Manufacturing headline came in strong (27.5 v 14.7 expected) but some underlying weakness in the inventories and employment sub-readings took some of the headline gloss away. On the OECD downgrades, US GDP growth forecasts were revised lower to 2.1% this year and 3.1% in 2015. This compares with its previous growth forecast of 2.6% and 3.5%, respectively back in May. Europe’s growth projections were also slashed to 0.8% this year and 1.1% next year – which was considerably lower against the 1.2% and 1.7% estimates the OECD had back few months ago.

Away from data, as UK’s PM David Cameron made his final effort to warn the stark consequences of a breakup in Scotland yesterday a Guardian/ICM poll showed that 63% of respondents in England and Wales believe that the UK should refuse to negotiate over a common currency area if Scotland becomes independent. Only 27% of those responded thinks the UK should negotiate a currency union. This is quite a contrast with Scotland where 62% believed that a currency union should be negotiated (The Guardian). The Sterling was a slightly weaker against the Dollar yesterday and is now trading around 1.6223 during the Asian session overnight.

Whilst we are still on the Scotland theme, earlier this morning we published a note entitled, “The Scottish Referendum: Taking Stock in Credit.” In light of the recent poll tightening, in the note we look at how European cash credit has handled the situation and take stock of where it currently stands ahead of Thursday’s important vote. To give a quick overview its clear that UK paper in general, and subordinated paper in particular, in both the GBP and EUR iBoxx indices has measurably underperformed, with this underperformance most stark in UK non-fin sub paper. We go on to show the 20 UK GBP and EUR iBoxx index bonds that have widened the most during this period of Scottish uncertainty and conclude that if on Thursday Scotland votes “No” to independence, it is likely that the bonds we have highlighted will meaningfully outperform. If Scotland votes “Yes” the opposite will likely be true. Indeed if there is a Yes vote, rather than just being isolated to these names, we would expect a more widespread sell-off in risk and with it credit as global investors digest the wider implications of the result.

Back to markets, markets remained largely on the back foot overnight with most Asian equity benchmarks trading lower on the day. HK markets were shut for half a day on the back of the No.8 Typhoon signal but shall resume afternoon trading after the signal was lowered to No. 3 before mid-day. Away from HK, bourses in Japan and Australia are down around 0.3-0.4% as we type. Asian IG benchmark spreads were 1-2bp wider. The AUD has given back some of yesterday’s gains to trade back down to around 0.901 as we go to print.

As investors start to ready themselves for the big FOMC day tomorrow DB’s Peter Hooper has outlined his thoughts on what to expect from the Fed tomorrow. In sum, Peter thinks that the Committee will likely observe that enough progress is being made on the macro front to bring the asset purchase program to a conclusion at the end of October. Importantly, Peter expects the FOMC to drop calendar-based guidance (“considerable time”) from its statement, but to strive to do so in a way that does not advance market expectations of a mid-2015 lift-off date. The Committee should project a return to a near-neutral level of fed funds by year-end 2017 as their forecasts are extended. Finally, we can also expect an update of the Committee’s exit guidance along the lines outlined in the July minutes.

In terms of today we have a fairly light calendar in the US ahead of Yellen’s press conference tomorrow. US PPI will be the only data of note. Data watchers will likely be focusing on Europe today with the German ZEW and UK CPI/PPI reports being the notable releases.

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Veteran investor Marc Faber, author of The Gloom, Boom and Doom Report, reiterated the need for gold in a diversified portfolio when interviewed last week on CNBC. 

Faber, a resident of Thailand, is an advocate of gold storage in Singapore, and believes that a diversified portfolio will help protect against future market corrections which he believes are on the horizon.

Faber doesn’t see further new highs this year in the US equity markets, and thinks that there could be an S&P correction of between 10% and 30%. While admittedly Faber has been expecting a US stock market correction for some time now, his view is based on what he sees as weaker earnings from some US consumer bellwether companies. 

Additionally, on a technical level, Faber points to a lower participation rate of S&P stocks making new highs and more stocks making new lows. He looks for an acceleration of weakness in credit markets starting in the high yield (junk bond) market – which has already weakened – and continued weaker corporate earnings.

Asked for his view about gold, Faber commented on possible gold market manipulation and the need to diversify investment portfolios:

 “Basically, we’ve been in a correction since 2011, some informed observers they think that the market is manipulated, I don’t know.

But I have always argued, we don’t know how the world looks like in 5 years’ time, maybe the S&P is at 3000, but it could also be at 1500, we just don’t know.

There’s a lot of manipulation through fiscal and monetary policies.

Now, I want to be diversified, I want to own some gold, I want to own some shares, I own the most in Asia, and some in Europe because I think in Europe there’s still better value than in the US, and I own some bonds and cash and real estate. So, I hope that when the collapse happens, I’m only going to lose 50% of my money. “

Both the SGX’s upcoming partnership with Brinks in Singapore, and the CME’s upcoming  partnerships with Via Mat, Brinks and HKIA in Hong Kong, clearly illustrate the growing importance of secure precious metals vaulting services in these two critical financial centres in Asia.

As part of a diversified investment portfolio, secure precious metals storage in safe and stable jurisdictions such as Singapore and Hong Kong is essential for wealth protection in an increasingly volatile global financial system.

Faber on CNBC

Faber webinar on gold storage in Singapore

Essential Guide To Storing Gold In Singapore

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