- Moody’s Downgrades Japan’s Credit Rating (WSJ)
- China Factory Gauge Drops as Shutdowns Add to Slowdown (BBG)
- Euro zone factory growth stalls in November as new orders sink (Reuters)
- Espírito Santo Faces Money-Laundering Investigations (WSJ)
- Oil at $40 Possible as Market Transforms Caracas to Iran (BBG)
- Hong Kong warns protesters not to return after clashes close government HQ (Reuters)
- Bond Secrets Decoded 9,539 Miles From Wall Street in Lot (BBG)
- Ruble Rally Turns to Rout as Fortunes Tied to Sinking Oil (BBG)
- Loans Made in Blink as Banks, Funds Vie for LendingClub Clients (BBG)
- In fight for influence, Russia can play good cop too (Reuters)
- OPEC Inaction Spurs Survival of Fittest as Oil Below $65 (BBG)
- Vox Media Valued at Nearly $400 Million After Investment (NYT)
- Bond Funds Load Up on Cash (WSJ)
- Funding Deadline Tops Congress’s Agenda (WSJ)
- E.ON to Split Into Two Companies (WSJ)
Overnight Media Digest
WSJ
* Large bond funds are holding the most cash since the financial crisis as portfolio managers brace for potential price swings and unruly trading ahead of an expected Federal Reserve rate increase in 2015. (http://on.wsj.com/1FH47mw)
* Retail spending over the Thanksgiving weekend fell 11 percent, the National Retail Federation said, a sign the four-day shopping bonanza may be losing its punch. (http://on.wsj.com/1vF2bbT)
* Lawmakers returning to Capitol Hill on Monday will have less than two weeks to figure out how to keep the government funded amid an acrimonious fight between Republicans and the White House over immigration. (http://on.wsj.com/1rLb2oC)
* German utility E.ON SE said late Sunday it would split into two companies, with one focused on renewables and the new one on conventional energy, as the power giant aims to address rapid changes in the energy market and facilitate the valuation of its assets. (http://on.wsj.com/1v8TKqw)
* Freeport-McMoRan Inc is nearing a settlement to resolve allegations its board and executives had conflicts of interest while negotiating the natural-resource company’s purchase of two affiliates last year. (http://on.wsj.com/1yrCgp9)
* Investment firm Centerbridge Partners LP is nearing a deal to buy IPC Systems Inc, a communications company for financial trading, for more than $1.1 billion including debt, according to people familiar with the matter. (http://on.wsj.com/1v7Ibjs)
* New pressure from OPEC will cause a lot of pain for U.S. energy companies, but they probably will not slash American oil output anytime soon, experts said this weekend. (http://on.wsj.com/1tCDuZq)
* Automakers could report their highest November U.S. sales in more than a decade after new-car shoppers feasted on early Black Friday promotions. (http://on.wsj.com/1FH8aiX)
FT
* Germany’s biggest utility E.ON announced plans on Sunday to split in two and spin off most of its power generation, energy trading and upstream businesses as the earnings of the company have been squeezed and it looks forward to a new strategy.
* Telecoms group Altice SA has agreed to buy the Portuguese operations of Brazil’s Grupo Oi for about 7.4 billion euros ($9.2 billion), it said in a statement on Sunday after it beat out a rival bid from private equity funds Apax and Bain.
* Swiss voters overwhelmingly rejected proposals on Sunday to boost gold reserves and impose strict new curbs on immigration. The “Save our Swiss gold” initiative was rejected by 77 percent of voters and a separate proposal to cut annual immigration put forward by Ecopop, was rejected by 74 percent of voters.
* Lloyds Banking Group Plc’s insurance unit Scottish Widows has put its offshore investment and tax planning business up for sale. Several parties have already expressed interest in the Isle of Man-based operation business which Lloyds inherited when it acquired HBOS.
NYT
* Vox Media, a publisher with a fast-growing portfolio of online lifestyle and news brands, will announce on Monday that it has just closed a $46.5 million round of financing from investment firm General Atlantic, the New York Times reported, citing a person with knowledge of the deal. (http://nyti.ms/1rJ3kAP)
* Three years after his death, Steve Jobs is very much a presence in courtrooms across the country. And that’s not necessarily good news for Apple Inc. In December, the company is set to go to trial in the third major antitrust lawsuit it has faced since Jobs died. His emails will play an important role in the case, as they did in the last two. But lawyers will probably have to work hard to give his statements a positive spin. (http://nyti.ms/15M2SaY)
* Sales, both in stores and online, from Thanksgiving through the weekend were estimated to have dropped 11 percent, to $50.9 billion, from $57.4 billion last year, according to preliminary survey results released Sunday by the National Retail Federation. Sales fell despite many stores opening earlier than ever on Thanksgiving Day. The web failed to attract more shoppers or spending over the four-day holiday weekend than it did last year. (http://nyti.ms/1tCvJTm)
* Deadly coal mining disasters are nothing new to West Virginia, but a 2010 explosion is different in one important respect: A Chief Executive, Donald L. Blankenship, is being charged over the 29 lives lost. Legal experts call the case against Blankenship, a figure both feared and renowned for his power in West Virginia, a turning point after a century in which the power of coal barons over politicians, courts and the economy protected them. (http://nyti.ms/1ya9jQM)
* Peggy Young used to drive for United Parcel Service , delivering envelopes and small packages. Then she got pregnant, and her doctor recommended that she avoid lifting anything heavy. The company responded by placing her on unpaid leave. She sued under the federal Pregnancy Discrimination Act, and the Supreme Court will hear her case on Wednesday. (http://nyti.ms/1FH5ZvD)
* Media enterprises have not figured on the list of billion-dollar deals backed by the Hong Kong-based investor Jho Low in recent years, but his family’s charitable foundation is putting up $25 million to save an ailing United Nations-owned news service that is in the business, he says, of saving lives. (http://nyti.ms/1vZ66Du)
Britain
The Times
To Gfinity and beyond, as eSports comes to AIM
Gfinity, which runs tournaments in which gamers are watched while playing at sports stadiums and entertainment venues, is to raise funds to help to build a dedicated “eSports” stadium near London. (http://thetim.es/1A5dawu)
Co-operative Bank set to fail latest stress test
The Co-operative Bank is set to fail a key test of its financial strength this month and is expected to be forced at least to accelerate its recovery plan to keep regulators onside. (http://thetim.es/11G2IzA)
The Guardian
Barclays rolls out face-to-face video banking
Barclays Plc is to offer a “video banking” service that allows customers to have a “face-to-face” conversation with an adviser via their smartphone, tablet or computer, wherever they are in the world, whatever the time of day. The bank said the move was “a UK banking first”. (http://bit.ly/1rHwNeu)
Christmas shopping frenzy moves online for Cyber Monday
After Black Friday’s pitched supermarket battles over discounted TVs and domestic gadgets, the retail frenzy moves online to a day the industry has christened Cyber Monday, with nearly 650 million pounds ($1.01 billion) expected to be spent with the click of a mouse.(http://bit.ly/1y9Mg8F)
The Telegraph
United Cacao sweetens Aim with 23 mln pounds float
United Cacao <IPO-UCLS.L> is to float on London’s junior Aim market today, making it the first publicly-listed pure-play cocoa bean plantation in the world. The listing comes at a time of unprecedented global demand for chocolate, with production problems in the major supplier countries prompting concerns about an impending chocolate shortage. (http://bit.ly/12avtVU)
Banks remove barriers to business loans
Royal Bank of Scotland Plc, Lloyds Banking Group Plc , Barclays Plc and HSBC Holdings Plc have introduced common standards meaning it will take no more than seven working days to process applications allowing rival lenders to secure loans against businesses’ assets. (http://bit.ly/12i7EL1)
Sky News
Retailers hope Black Friday feeling will last
Retailers are hoping to cash in on further price cuts this weekend after the frenzy of Black Friday saw shoppers scrambling to bag pre-Christmas bargains. Online retailers are also preparing their systems for similar success on Cyber Monday, another sales event originating in the U.S. and adopted by the UK (http://bit.ly/1Cw1mZ0)
Ex-BP boss Tony Hayward boosted by Kurdish payout
Genel Energy, an oil explorer founded by Tony Hayward, a former BP Plc chief executive, will disclose that it has received a multimillion pound payment after a months-long delay prompted partly by Islamic State incursions into Kurdistan. (http://bit.ly/1vDjda5)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Markit manufacturing PMI for November at 9:45–consensus 55.0
ISM manufacturing index for November at 10:00–consensus 57.8
ANALYST RESEARCH
Upgrades
Alcoa (AA) upgraded to Buy from Neutral at Citigroup
Amedisys (AMED) upgraded to Sector Perform from Underperform at RBC Capital
Deere (DE) upgraded to Market Perform from Underperform at Wells Fargo
Deere (DE) upgraded to Neutral from Underweight at JPMorgan
Deere (DE) upgraded to Outperform from Neutral at RW Baird
E2open (EOPN) upgraded to Outperform from Market Perform at Northland
Groupon (GRPN) upgraded to Buy from Neutral at BofA/Merrill
Navistar (NAV) upgraded to Buy from Neutral at Longbow
Downgrades
American Water (AWK) downgraded to Neutral from Outperform at RW Baird
Bank of Montreal (BMO) downgraded to Neutral from Buy at Citigroup
Big Lots (BIG) downgraded to Neutral from Overweight at JPMorgan
CONSOL (CNX) downgraded to Neutral from Buy at Citigroup
Carnival (CCL) downgraded to Neutral from Buy at Goldman
Diamond Offshore (DO) downgraded to Neutral from Buy at Guggenheim
Dover (DOV) downgraded to Underweight from Neutral at JPMorgan
Dr Pepper Snapple (DPS) downgraded to Underperform from Sector Perform at RBC Capital
Extended Stay America (STAY) downgraded to Neutral from Overweight at JPMorgan
ITC Holdings (ITC) downgraded to Hold from Buy at Wunderlich
InterContinental (IHG) downgraded to Sell from Neutral at UBS
Monster Beverage (MNST) downgraded to Outperform from Top Pick at RBC Capital
NorthWestern (NWE) downgraded to Neutral from Outperform at RW Baird
Seadrill (SDRL) downgraded to Neutral from Buy at Guggenheim
Xcel Energy (XEL) downgraded to Neutral from Outperform at RW Baird
Initiations
21st Century Fox (FOXA) reinstated with a Buy at Goldman
Antero Midstream (AM) initiated with a Buy at Citigroup
Antero Midstream (AM) initiated with an Outperform at Credit Suisse
Antero Midstream (AM) initiated with an Outperform at RW Baird
Antero Midstream (AM) initiated with an Outperform at Wells Fargo
Antero Midstream (AM) initiated with an Overweight at Barclays
Antero Midstream (AM) initiated with an Overweight at JPMorgan
Arista Networks (ANET) initiated with an Underperform at Jefferies
Chefs’ Warehouse (CHEF) initiated with a Neutral at JPMorgan
Dynamic Materials (BOOM) initiated with a Buy at Roth Capital
FMSA Holdings (FMSA) initiated with a Buy at Jefferies
Nevro (NVRO) initiated with an Outperform at JMP Securities
Nevro (NVRO) initiated with an Overweight at JPMorgan
Volvo (VOLVY) initiated with an Outperform at Credit Suisse
Yahoo (YHOO) reinstated with a Neutral at Credit Suisse
YuMe (YUME) initiated with an Equal Weight at Barclays
COMPANY NEWS
Boeing (BA), Ryanair (RYAAY) finalized order for 100 737 MAX 200s, valued at $11B
Novartis (NVS) fingolimod PPMS Phase III trial did not meet primary endpoint
Moody’s downgraded Japan to A1 from Aa3; outlook stable
ChannelAdvisor said Black Friday online sales grew 22% (EBAY, AMZN)
Amazon (AMZN) announced that Black Friday sales of Kindle e-readers and Fire tablets on Amazon.com grew significantly year over year. Fire tablet sales on Amazon.com were up over 3x year over year this Black Friday; Kindle e-reader sales on Black Friday grew nearly 4x year over year
EARNINGS
Fifth Street Finance (FSC) reports Q4 net investment income 25c, consensus 26c
NEWSPAPERS/WEBSITES
New Google Glass (GOOG) device to feature Intel (INTC) chip, WSJ reports (TXN)
Samsung’s (SSNLF) key executives to maintain positions at company, WSJ says
Google (GOOG) Chromebook gains on Apple (AAPL) iPads in U.S. schools, FT reports
Sony (SNE) enlists FireEye’s (FEYE) Mandiant in cyber attack repair, Reuters reports
Sony (SNE) exploring whether North Korea hackers are behind attack, Re/code reports
GSK (GSK) plans reorganization, including U.S job cuts, Bloomberg reports
Oaktree Capital (OAK) shares look like a bargain, Barron’s says
Accenture (ACN) could rise 40% in three years, Barron’s says
via Zero Hedge http://ift.tt/12e7Uvy Tyler Durden