- Obama open to appointing Ebola ‘czar’, opposes travel ban (Reuters)
- Schools Close as Nurse’s Ebola Infection Ignites Concern (BBG)
- How the World’s Top Health Body Allowed Ebola to Spiral Out of Control (BBG)
- European Stocks Rise Amid Growing Pressure for Stimulus (BBG)
- Putin Threatens EU Gas Squeeze Raising Stakes for Ukraine (BBG)
- ECB to Start Asset Purchases Within Days, Says Central Banker Coeuré (WSJ)
- Investors search for signs of end to stock market correction (Reuters)
- Putin’s talks with EU and Poroshenko ‘difficult, full of misunderstandings’: Kremlin (Reuters)
- Monaco Murders Reveal Six Hidden Real Estate Billionaires (BBG)
- In Liberia, U.S. Soldiers Race Ebola (WSJ)
- Islamic State training pilots to fly in three jets: Syria monitor (Reuters)
- Venezuela Goes From Bad to Worse as Oil Prices Plummets (BBG)
- Luxury Shoemaker Jimmy Choo Rises on London Trading Debut (BBG)
Overnight Media Digest
WSJ
* President Barack Obama, after a day of withering criticism over the government’s handling of the Ebola virus, said Thursday he may name a point person to oversee the administration’s response and is open to a travel ban but isn’t planning one. (http://on.wsj.com/11xafkr)
* Chiquita Brands International Inc said its board rejected a sweetened takeover offer from Cutrale-Safra, saying the new bid isn’t adequate and isn’t in the best interest of shareholders. (http://on.wsj.com/1vCEt20)
* Sam Nunn, one of the last Georgia Democrats to serve a full term in the Senate, had just finished watching his granddaughter win a soccer game when he turned his attention to a more pressing family contest: his daughter Michelle’s run for U.S. senator. (http://on.wsj.com/1CtIVPv)
* Vice President Joe Biden’s son Hunter was discharged from the Navy Reserve this year after testing positive for cocaine, according to people familiar with the matter. (http://on.wsj.com/ZH89x5)
* The likely collapse of AbbVie Inc’s $54 billion agreement to buy Shire PLC leaves two global drug companies in need of new, independent courses and investors and Wall Street bankers smarting from losses and fees they won’t collect. (http://on.wsj.com/1vkY6dw)
FT
State-owned Russian oil company NK Rosneft OAO and Arkady Rotenberg, judo partner of Russian President Vladimir Putin, have launched legal challenges against sanctions imposed by the European Union’s European Council over Russia’s actions in Ukraine.
Advertising group WPP PLC’s unit has taken legal actions against the UK government to stop it from passing a four-year advertising contract worth 400 million stg to WPP’s rival Carat, an agency owned by rival Dentsu Aegis.
Royal Bank of Scotland said it will talk to its customers about the higher interest rates, making the process transparent, after it was fined for mis-selling home loans.
Britain’s bankers have been warned by officials from the International Monetary Fund on Thursday that a battle between national and regional regulators will increase costs for banks and stop capital flowing between subsidiaries in different countries.
Bank of England countered the EU cap on banker bonuses saying the debate over bonuses was “misguided” and that variable pay should play a significant role in banker remuneration.
NYT
* BHP Billiton Plc said on Thursday it would proceed with a new listing in London for its planned spinoff of several assets into a new global metals and mining company. (http://nyti.ms/1xXl1uV)
* MMX Mineracao & Metalicos SA, a mining company owned by the troubled Brazilian businessman Eike Batista, filed for bankruptcy protection on Thursday, the third of his companies to do so. (http://nyti.ms/1wa3Upx)
* The ambitions of the Russian tycoon Mikhail Fridman to build a new oil and natural gas company are being frustrated by the British government, which is declining to bless his purchase of a large gas field in the North Sea and other assets in British waters. (http://nyti.ms/1xXlHjR)
* Financial experts warn that a small group of giant asset managers that have amassed high-risk, high-yield bonds could find themselves unable to raise enough cash during a sell-off. (http://nyti.ms/1vkRsnN)
* Just one day after HBO said it would start an Internet-only offering, CBS Corp announced on Thursday its own subscription streaming service that lets people watch its live programming and thousands of current and past shows on demand. The moves signal a watershed moment for web-delivered television, where viewers have more options to pay only for the networks or programs they want to watch – and to decide how, when and where to watch them. (http://nyti.ms/1stYpjO)
Canada
THE GLOBE AND MAIL
** Former Canadian Prime Minister Jean Chretien is defending Liberal Leader Justin Trudeau’s controversial decision to oppose Canada’s air combat mission in Iraq, saying the fighter planes the Harper government is deploying are a “very marginal” response to the crisis caused by Islamic State militants. (http://bit.ly/1yJhfbD)
** Two employees at the Toronto hospital where Rob Ford is undergoing cancer treatment inappropriately accessed the mayor’s confidential medical records, a breach that led the hospital to mete out unspecified “action” against the staff members. (http://bit.ly/1sYX4V1)
** Thirty minutes into the 45th debate of Toronto’s race for mayor, front-runner John Tory squared off against rival Doug Ford, who until the most recent opinion poll had been nipping at his heels since he stepped into the race as a last-minute substitute for his brother Rob Ford. (http://bit.ly/Zxbwqc)
NATIONAL POST
** A new report by HSBC Global Research argues Canada’s oil and gas boom remains on course. The 20-page report, authored by HSBC Bank Canada chief economist David Watt, says the unprecedented boom in capital spending in Canada’s natural resources sector is here to stay, with major projects currently under way or planned in the next decade worth C$675-billion ($600.11 billion). (http://bit.ly/1qGZIJi)
** One year out from a scheduled October 2015 federal elections in Canada, none of the main federal parties has nominated even half of its candidates, although the opposition says it is preparing for the possibility of a snap spring campaign. (http://bit.ly/1waniCB)
** A Canadian survivor of the Nepal avalanche that killed at least 27 people has described a harrowing tale of being buried waist-high in thick, heavy snow on a “nightmare” of a day. Quebecer Sonia Leveque said she thought she was going to die and that she and her fellow trekkers are fortunate to be alive. (http://bit.ly/1sPkV8n)
China
CHINA SECURITIES JOURNAL
– China’s related government departments are studying several policies to support the logistics industry, including the reduction of administrative fees and halving land taxes for building warehousing facilities.
– The National Development and Reform Commission (NDRC) has approved three railway construction and expansion projects with an investment value of 95.9 billion yuan ($15.66 billion).
SHANGHAI SECURITIES NEWS
– The China Insurance Regulatory Commission is looking to introduce a rating system to improve corporate governance of the country’s insurance firms, the newspaper said citing sources.
CHINA DAILY
– Apple Inc on Thursday appealed a Beijing court ruling, which said the country’s intellectual property authority’s grant of a patent for an intelligent robot to a Shanghai technology firm was valid.
– Prices of smuggled iPhone 6 and iPhone 6 Plus units have almost halved in Beijing as Apple prepares to deliver authorised handsets on Friday.
Britain
The Times
MARKET TURMOIL PUTS EUROPE IN SPOTLIGHT
The threat of stagnation in Europe, a potential new eurozone crisis and weaker growth in the United States rattled markets for a second day, sending prices for everything from government debt to equities into convulsions worldwide. (http://thetim.es/ZwGPkN)
BUFFETT SELLS DOWN ‘HUGE MISTAKE’ TESCO HOLDING
Warren Buffett’s Berkshire Hathaway has revealed that it sold shares in supermarket chain Tesco Corp on Monday, reducing its stake from 3.6 percent to below the 3 percent threshold at which investors are obliged to declare their ownership. (http://thetim.es/1ucRFF6)
The Guardian
ABBVIE WITHDRAWS BID FOR SHIRE AFTER U.S. GETS TOUGH ON TAX
U.S. drugs group AbbVie Inc has pulled out of its proposed $54 billion (42.14 billion euro) takeover of Britain’s Shire Plc after the Obama administration introduced rules to clamp down on overseas acquisitions driven by tax avoidance. (http://bit.ly/1CsDsbC)
U.S. FACTORY FIGURES HELP BRING CALM TO MARKETS AFTER DAYS OF TURMOIL
Strong U.S. factory output growth and the intervention by James Bullard, the hawkish president of the St. Louis Federal Reserve, brought some relief to markets following three days of turmoil that have knocked billions of pounds off the value of the FTSE 100. (http://bit.ly/1sWhM6V)
The Telegraph
WORLD BRACES AS DEFLATION TREMORS HIT EUROZONE BOND MARKETS
Eurozone fears have returned with a vengeance as deepening deflation across southern Europe and fresh turmoil in Greece set off wild moves on the European bond markets. Yields on 10-year German Bund plummeted to an all-time low on 0.72 percent on flight to safety, touching levels never seen before in any major European country in recorded history. (http://bit.ly/1DgybWI)
ANDREW BAILEY THROWS WEIGHT BEHIND GEORGE OSBORNE OVER BONUS CAP
Andrew Bailey, chief executive of the Prudential Regulation Authority, told senior bankers that the bonus cap is “the wrong policy” which would lead to unintended consequences. His comments come just a day after the European Banking Authority launched a clampdown on banks using “role-based allowances” to get around the cap. (http://bit.ly/1F79vSz)
Sky News
BANK RAISES FIXED PAY AS CRACKDOWN LOOMS
Sky News has learnt that Nomura Holdings Inc, the Japanese bank which acquired the European operations of Lehman Brothers after its collapse in 2008, is poised to award backdated fixed salary increases to a handful of its most senior City-based employees. (http://bit.ly/1F31pdw)
PM APPEALS FOR ‘ONE LAST GO’ ON EU IMMIGRATION
British Prime Minister David Cameron has said the immigration system is not working and he wants “one more go” at negotiating a better deal with the EU to limit the number of incomers. (http://bit.ly/ZwInva)
The Independent
BP LOSES COURT BATTLE OVER MEXICO GULF OIL SPILL CLAIMS
BP Plc is facing a flood of legal claims from big British investors over the Gulf of Mexico spill after it lost a crucial courtroom battle in Texas to get their cases thrown out. The investors, which include pension funds for several London boroughs and BP’s arch rival, Shell, are suing in the United States, where they are likely to win far-bigger payouts than they could in Britain. (http://ind.pn/1sXX8V7)
BSKYB’S GERMAN STAKE COULD GET BIGGER ON EURO ZONE JITTERS
BSkyB Chief Executive Jeremy Darroch has signalled the British pay-TV firm could end up with a larger-than-expected stake in Sky Deutschland as concerns about the German economy may encourage shareholders to sell. (http://ind.pn/ZGPx0g)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Housing starts for September at 8:30–consensus up 5.4% to 1.01M rate
Housing permits for September at 8:30–consensus up 2.7% to 1.03M rate
University of Michigan consumer sentiment index for October at 9:55–consensus 84.0
ANALYST RESEARCH
Upgrades
AK Steel (AKS) upgraded to Buy from Neutral at Nomura
AMD (AMD) upgraded to Sector Perform from Underperform at Pacific Crest
Atmos Energy (ATO) upgraded to Overweight from Neutral at JPMorgan
BorgWarner (BWA) upgraded to Buy from Hold at Deutsche Bank
CA Technologies (CA) upgraded to Overweight from Equal Weight at Barclays
Calumet Specialty Products (CLMT) upgraded to Outperform at Wells Fargo
DHT Holdings (DHT) upgraded to Buy from Hold at Evercore
E-House (EJ) upgraded to Buy from Neutral at Goldman
Exelon (EXC) upgraded to Neutral from Sell at Citigroup
Fabrinet (FN) upgraded to Buy from Neutral at B. Riley
Fifth Third Bancorp (FITB) upgraded to Buy from Neutral at Citigroup
Foundation Medicine (FMI) upgraded to Outperform from Market Perform at William Blair
Goldman Sachs (GS) upgraded to Outperform from Market Perform at Keefe Bruyette
Helmerich & Payne (HP) upgraded to Buy from Neutral at UBS
Hilton (HLT) upgraded to Buy from Neutral at SunTrust
Hyatt Hotels (H) upgraded to Outperform from Neutral at Macquarie
IPG Photonics (IPGP) upgraded to Buy from Hold at Stifel
ITC Holdings (ITC) upgraded to Neutral from Underperform at Credit Suisse
Intuitive Surgical (ISRG) upgraded to Outperform from Market Perform at Leerink
Leju (LEJU) upgraded to Buy from Neutral at Goldman
Mattress Firm (MFRM) upgraded to Buy from Hold at KeyBanc
Nabors Industries (NBR) upgraded to Buy from Neutral at UBS
Old Dominion (ODFL) upgraded to Buy from Neutral at Longbow
PDC Energy (PDCE) upgraded to Buy from Neutral at SunTrust
Patterson-UTI (PTEN) upgraded to Buy from Neutral at UBS
PrivateBancorp (PVTB) upgraded to Outperform from Neutral at Macquarie
QLogic (QLGC) upgraded to Buy from Hold at Summit Research
Reliance Steel (RS) upgraded to Buy from Hold at Topeka
Southwestern Energy (SWN) upgraded to Outperform from Market Perform at Raymond James
SunEdison (SUNE) upgraded to Outperform from Market Perform at Cowen
Toronto-Dominion (TD) upgraded to Outperform from Neutral at Credit Suisse
Triangle Capital (TCAP) upgraded to Outperform from Market Perform at JMP Securities
UnitedHealth (UNH) upgraded to Outperform from Market Perform at Leerink
Viper Energy (VNOM) upgraded to Outperform from Market Perform at Northland
Xilinx (XLNX) upgraded to Outperform from Market Perform at Wells Fargo
Downgrades
AMD (AMD) downgraded downgraded to Hold from Buy at Canaccord
Urban Outfitters (URBN) downgraded to Equal Weight from Overweight at Morgan Stanley
Urban Outfitters (URBN) downgraded to Neutral from Buy at Goldman
Yara (YARIY) downgraded to Sell from Neutral at UBS
Initiations
Alibaba (BABA) initiated with a Buy at Brean Capital
AmerisourceBergen (ABC) initiated with an Outperform at RBC Capital
Arctic Cat (ACAT) initiated with a Hold at Wunderlich
Brean starts Alibaba (BABA) at Buy, calls core China Internet holding
Cardinal Health (CAH) initiated with an Outperform at RBC Capital
Clean Energy (CLNE) initiated with a Hold at MLV & Co.
Dot Hill Systems (HILL) initiated with an Overweight at Piper Jaffray
McKesson (MCK) initiated with an Outperform at RBC Capital
Nautilus (NLS) initiated with a Buy at Wunderlich
Polypore (PPO) initiated with a Buy at MLV & Co.
Quantum (QTWW) initiated with a Buy at MLV & Co.
Radiant Logistics (RLGT) initiated with a Buy at Sterne Agee
Signet Jewelers (SIG) initiated with an Overweight at Barclays
Smith & Wesson (SWHC) initiated with a Buy at Wunderlich
Tesla (TSLA) initiated with a Buy at MLV & Co.
Thor Industries (THO) initiated with a Buy at Wunderlich
Tiffany (TIF) initiated with an Equal Weight at Barclays
COMPANY NEWS
Yara (YARIY) announced termination of merger discussions with CF Industries (CF)
AMD (AMD) announced global headcount reduction of 7%
General Electric (GE) said on track to meet goal or $1B in structural cost-out for year, said on track to close sale of GE Money Bank in Q4
Sarepta Therapeutics (SRPT) announced the publication of results from two single ascending-dose studies that demonstrated no clinical or toxicologic safety concerns with the company’s drug candidates for the treatment of Ebola and Marburg virus, respectively
Ampio (AMPE) announced results of open label portion of multiple injections study
Airbus (EADSY) cut production rate of A330 aircrafts to 9 from 10 per month
Cliffs Natural (CLF) said expects to record non-cash impairment of about $6B in Q3
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
General Electric (GE), BNY Mellon (BK), Heritage-Crystal Clean (HCCI), Fidelity Southern (LION), Crown Holdings (CCK), Western Alliance (WAL), BancFirst (BANF), Xilinx (XLNX), QLogic (QLGC), WD-40 (WDFC), Associated Banc-Corp (ASBC), First Financial (FFIN), Cytec Industries (CYT), Schlumberger (SLB), SanDisk (SNDK), Independent Bank (INDB), Wintrust Financial (WTFC), Bridge Capital Holdings (BBNK), Stryker (SYK)
Companies that missed consensus earnings expectations include:
Google (GOOG), AMD (AMD), Fabrinet (FN), Capital One (COF)
Companies that matched consensus earnings expectations include:
People’s United (PBCT)
Textron (TXT) raises FY14 EPS cont ops to $2.05-$2.15 from $1.92-$2.12
Rolls-Royce (RYCEY) sees FY14 revenue 3.5%-4% lower vs. last year
AMD (AMD) sees Q4 revenue down 13%, plus or minus 3%, consensus $1.48B
SanDisk (SNDK) sees Q4 revenue $1.8B-$1.85B, consensus $1.88B
NEWSPAPERS/WEBSITES
Clinton group urges Atlantic Power (AT) to restart sale process, Reuters reports
LVMH (LVMUY) could pair with a tech company to launch smartwatch, WSJ reports
Wells Fargo (WFC) to shut ‘dark pool’ as demand drops, Reuters reports
HP (HPQ) dismisses concerns about drop in global notebook market share, DigiTimes reports
NPD: Sony PlayStation4 (SNE) outsells XBox One (MSFT) in September, GameSpot reports
Goldman Sachs (GS) looks like a buy, Barron’s says
SYNDICATE
Tetraphase (TTPH) 3.95M share Secondary priced at $19.00
Zayo Group (ZAYO) 21.052M share IPO priced at $19.00
via Zero Hedge http://ift.tt/1qHCYJa Tyler Durden