- They go all in: China’s PBOC Cuts Interest Rates for First Time Since 2012 (BBG)
- And all in-er: ECB’s Draghi throws door to quantitative easing wide open as recovery wanes (Reuters)
- Global Markets Rally: ECB Head Says Central Bank Is Ready to Expand Stimulus Program After China Cuts Rates (WSJ)
- Obama unveils U.S. immigration reform, setting up fight with Republicans (Reuters)
- U.S. increasing non-lethal military aid to Ukraine (Reuters)
- Russia warns U.S. against arms to Ukraine as Biden due in Kiev (Reuters)
- Ukraine slashed gold holdings in October, Russia added more – IMF (Reuters)
- Abe Dissolves Japan’s Lower House of Parliament (WSJ)
- In blow to Cameron, Britain’s UKIP wins second parliamentary seat (Reuters)
- Distressed Debt in China? Ain’t Seen Nothing, DAC Says (BBG)
- Citigroup Said to Be Ousted From ECB FX Group for Rigging (BBG)
- Sotheby’s CEO to Step Down (WSJ)
- More arrests as protesters await Ferguson grand jury decision (Reuters)
- Finally, a New Clue to Solve the CIA’s Mysterious Kryptos Sculpture (Wired)
Overnight Media Digest
WSJ
* U.S. President Barack Obama announced Thursday that millions of illegal immigrants will gain protection from deportation, under a plan that bypasses Congress and which could unleash unpredictable political and economic forces. (http://on.wsj.com/1BSgbVA)
* The Federal Reserve launched a sweeping review of how it supervises big banks. The Fed said the review is focused on whether senior staff are given enough information when making decisions affecting the largest financial firms, including “whether channels exist for decision makers to be aware of divergent views”. (http://on.wsj.com/1uGbYOe)
* Chief Executive William Ruprecht is leaving Sotheby’s , months after hedge-fund activist Dan Loeb and several others joined the auction house’s board. The company said the departure was by mutual agreement with the board, which took a hard look at the company’s senior management in August. (http://on.wsj.com/1Aqf5Pg)
* Takata Corp, the air-bag supplier at the center of a massive recall involving millions of vehicles, knew one of its air bags exploded as early as May 2005 but didn’t investigate it further or warn auto makers of a potential defect until two years later. (http://on.wsj.com/1vukToN)
* Alibaba Group Holding Ltd, the Chinese e-commerce company, has emerged as this year’s biggest source of fees for banks working on capital-markets deals. After its initial public offering in September, the largest in history, the company on Thursday sold $8 billion in bonds, one of the largest corporate-bond deals of the year. (http://on.wsj.com/1qDgY8d)
* Federal authorities are investigating whether casino operator Wynn Resorts Ltd violated money-laundering laws, according to people familiar with the matter. Wynn will be the third major Las Vegas casino company in recent years known to be investigated for possible violations of money-laundering laws. (http://on.wsj.com/11AkML5)
* Valeant Pharmaceuticals Inc is launching a new $2 billion securities repurchase program, just days after losing its bid to buy Botox maker Allergan Inc to Actavis Plc . Under the program, which begins Friday, Valeant can buy back its senior notes, common shares and other securities. (http://on.wsj.com/1xvIEfR)
FT
UK Independence party leader Nigel Farage said his party was going to win the seat in the Rochester and Strood by-election on Thursday night as the Tories braced themselves for a possible upheaval in the wake of the election of Ukip’s second member of parliament.
Britain’s Finance Minister George Osborne on Thursday night withdrew his bid to overturn the EU banker bonus cap, saying he would focus on reforming global rules on pay rather than wasting more money on a hopeless lawsuit.
Boris Johnson, the Conservative mayor of London, admitted to being pursued by the US authorities for an unpaid tax demand.
Swiss chemicals group Ineos has entered the race to develop UK reserves of shale gas, announcing its plans on Thursday to spend $1 billion on exploration in coming years.
NYT
* Goldman Sachs Group Inc executives spent Thursday locked in a testy public face-off with members of Congress, fighting suggestions that the bank had taken too large a role in the commodities market. (http://nyti.ms/1x8jNuG)
* British regulators fined the Royal Bank of Scotland for about $88 million, on Thursday over a technology failure that left millions of customers unable to access their accounts for several weeks in 2012. (http://nyti.ms/1t9ihad)
* Airbus Group NV scored a big victory over Boeing Co on Thursday when Delta Air Lines Inc said it would buy 50 new planes from Airbus, including its newest long-range A350 aircraft. (http://nyti.ms/1uGFTpr)
* NRG Energy Inc, which built a leading electricity business from coal and other conventional power plants, is aiming to reduce its carbon emissions 50 percent by 2030 and 90 percent by 2050, the company said on Thursday. (http://nyti.ms/11xFA5Y)
* Technip of France said on Thursday that it had approached CGG SA, an oil services company, about a potential takeover and offered to acquire the smaller company for about $1.8 billion. (http://nyti.ms/1v0bnIG)
China
CHINA SECURITIES JOURNAL
– China is aiming to overhaul its rural land transfer systems within the next five years, the newspaper reported, citing a joint statement from China’s Central Committee and the State Council, China’s cabinet.
SECURITIES TIMES
– The State Council has rolled out a series of measures to help smaller companies amid a slowing economy, including extra financial support, lower taxation and establishing information sharing platforms.
SHANGHAI SECURITIES NEWS
– China’s securities regulator is probing PKU HealthCare Corp Ltd, a healthcare group linked to the prestigious Peking University, for violating securities regulations, according to a filing from the company.
CHINA DAILY
– China will unveil new standards for air purifiers on Friday to better regulate a market which is booming as consumers grow increasingly concerned about hazardous levels of air pollution, the Standardization Administration said on Thursday.
– A court in the autonomous region of Inner Mongolia plans to reopen a two decades-old trial of a teenager who was executed in 1996 for rape and murder. The case was fast tracked at the time despite doubts over the evidence.
SHANGHAI DAILY
– Shanghai has increased protection for consumers buying products online, the Shanghai People’s Congress ruled on Thursday. China’s e-commerce market boom is forcing regulators to adapt rules to keep up.
PEOPLE’S DAILY
– Solving land issues affecting China’s farmers is critical to the country’s wider reform, the paper which acts as a mouthpiece for the ruling Communist Party, said in a commentary.
Britain
The Times
Police struggle to trap tech-savvy terrorists
The ability of Britain’s intelligence chiefs to monitor the terrorist threat is at its lowest level for a decade, according to the country’s most senior anti-terrorism policeman.
IT staff pay price for computer fiasco that locked RBS customers’ accounts
The staff responsible for an IT glitch that left millions of RBS, NatWest and Ulster Bank customers unable to access their accounts have shouldered about one-tenth of a 56 million-pound ($87.9 million) fine slapped on Royal Bank of Scotland yesterday.
The Guardian Chancellor George Osborne backs down over EU cap on bankers’ bonuses
Chancellor George Osborne has conceded defeat in his attempt to overturn the EU cap on bonuses after a senior legal advisor at the European Court of Justice rejected his arguments.
Former JJB Sports boss convicted of taking 1 mln stg in backhanders
Chris Ronnie, the former boss of JJB Sports Plc, faces up to five years in jail, after being found guilty of accepting more than 1 million pounds ($1.57 million) in payments from suppliers.
The Telegraph RBS hit with 56 mln stg fine for IT breakdown
Royal Bank of Scotland has pledged that a repeat of the IT disaster that left millions of customers unable to make payments is extremely unlikely after the bank was hit with a 56 million-pound fine.
Wonga chief executive departs after six months in the job
Tim Weller, the interim chief executive officer of loan company Wonga, has left the consumer loans business six months after he took over from former chief executive Niall Wass, who himself lasted just six months in the role.
Sky News Shop Prices Fall at Fastest Pace Since 2002
Shoppers are on course to bag some bargains in the run up to Christmas, with prices falling at their quickest pace since 2002 in October.
British Gas Predicts Lower Bills This Year
British Gas is predicting its average dual fuel bills to be 100 pounds lower per household this year, largely because of warmer weather.
The Independent Ineos announces $1 bln investment in UK fracking exploration
Chemicals giant Ineos has set out plans to invest up to $1 billion (640 million pounds) into shale gas production in the UK – putting it at the centre of the country’s nascent fracking plans.
UK retail sales jumped in October as shoppers go bargain hunting
Retailers got an early boost in the run-up to Christmas as shoppers threw caution to the wind in October, official figures showed.
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Kansas City Fed manufacturing index for November at 11:00–consensus 6
ANALYST RESEARCH
Upgrades
Best Buy (BBY) upgraded to Outperform from Market Perform at Telsey Advisory
BlackRock (BLK) upgraded to Outperform from Market Perform at Bernstein
Cerner (CERN) upgraded to Outperform from Market Perform at Cowen
Community Health (CYH) upgraded to Outperform from Market Perform at Raymond James
Lockheed Martin (LMT) upgraded to Neutral from Sell at UBS
Manchester United (MANU) upgraded to Overweight from Neutral at JPMorgan
Teekay Offshore Partners (TOO) upgraded to Buy from Neutral at Citigroup
Trinity Industries (TRN) upgraded to Buy from Neutral at Longbow
Zebra Technologies (ZBRA) upgraded to Overweight from Neutral at JPMorgan
Downgrades
Aerohive (HIVE) downgraded to Neutral from Outperform at Macquarie
Alliant Energy (LNT) downgraded to Hold from Buy at Wunderlich
AmerisourceBergen (ABC) downgraded to Market Perform from Outperform at FBR Capital
Dillard’s (DDS) downgraded to Neutral from Buy at BofA/Merrill
eBay (EBAY) downgraded to Sell from Hold at Evercore ISI
Fiserv (FISV) downgraded to Equal Weight from Overweight at Barclays
Franklin Resources (BEN) downgraded to Market Perform from Outperform at Bernstein
GameStop (GME) downgraded to Market Perform from Outperform at Telsey Advisory
Macerich (MAC) downgraded to Equal Weight from Overweight at Morgan Stanley
Macerich (MAC) downgraded to Hold from Buy at KeyBanc
Wesco Aircraft (WAIR) downgraded to Equal Weight from Overweight at Barclays
WuXi PharmaTech (WX) downgraded to Hold from Buy at Jefferies
Initiations
ADP (ADP) initiated with a Sell at Topeka
Adobe (ADBE) initiated with a Buy at Jefferies
Amazon.com (AMZN) initiated with a Buy at Nomura
Arlington Asset Investment (AI) initiated with an Outperform at FBR Capital
Benefitfocus (BNFT) initiated with a Buy at Jefferies
CA Technologies (CA) initiated with a Buy at Jefferies
Caterpillar (CAT) initiated with a Buy at Stifel
Check Point (CHKP) initiated with a Buy at Jefferies
Ctrip.com (CTRP) initiated with an Overweight at HSBC
FMC Technologies (FTI) initiated with a Buy at Citigroup
Intuit (INTU) initiated with a Buy at Jefferies
Jefferies says new Microsoft (MSFT) looks like old, starts with Underperform
Microsoft (MSFT) initiated with an Underperform at Jefferies
MoneyGram (MGI) initiated with a Neutral at Compass Point
National Oilwell (NOV) initiated with a Neutral at Citigroup
Oracle (ORCL) initiated with a Hold at Jefferies
Paychex (PAYX) initiated with a Sell at Topeka
Paycom (PAYC) Software initiated with a Buy at Jefferies
Qlik Technologies (QLIK) initiated with a Buy at Jefferies
Qunar (QUNR) initiated with a Neutral at HSBC
Red Hat (RHT) initiated with a Hold at Jefferies
RingCentral (RNG) initiated with a Buy at Jefferies
SAP (SAP) initiated with a Hold at Jefferies
SS&C Technologies (SSNC) initiated with a Buy at Jefferies
Salesforce.com (CRM) initiated with an Underperform at Jefferies
SolarWinds (SWI) initiated with a Buy at Jefferies
Splunk (SPLK) initiated with a Buy at Jefferies
Symantec (SYMC) initiated with an Underperform at Jefferies
Tableau (DATA) initiated with a Hold at Jefferies
VMware (VMW) initiated with a Buy at Jefferies
Varonis (VRNS) assumed with a Buy at Jefferies
Western Union (WU) initiated with a Neutral at Compass Point
Xoom (XOOM) initiated with a Sell at Compass Point
ZAIS Financial (ZFC) initiated with an Outperform at JMP Securities
COMPANY NEWS
Sotheby’s (BID) CEO William F. Ruprecht to step down by mutual agreement with the board. Ruprecht, who has served as CEO since 2000, will continue
as Chairman, President and CEO until his successor is in place
Hertz (HTZ) named John P. Tague as President, CEO
Yum! Brands (YUM) authorized up to $1B in share repurchases
PS Fund 1 sold 2.24M Allergan (AGN) shares allocated to Valeant USA (VRX)
Rolls-Royce (RYCEY) wins $5B Trent order for 50 aircraft from Delta Air Lines (DAL) (EADSY)
Starwood (HOT) declared special dividend of 65c per share
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Sirona Dental (SIRO), Hibbett Sports (HIBB), Aruba Networks (ARUN), Zoe’s Kitchen (ZOES), Mentor Graphics (MENT), Splunk (SPLK), Autodesk (ADSK), Haynes (HAYN), Ross Stores (ROST), Intuit (INTU)
Companies that missed consensus earnings expectations include:
Geospace (GEOS), Amtech Systems (ASYS), Wesco Aircraft (WAIR), The Fresh Market (TFM), GameStop (GME)
Companies that matched consensus earnings expectations include:
Marvell (MRVL)
NEWSPAPERS/WEBSITES
CBS (CBS) consents to short term extension on DISH (DISH) negotiations, Bloomberg reports
Intel (INTC) may not reach goal of shipping 70M tablet chips next year, Re/code reports
Amazon (AMZN) lease hints at same-day shipping, brick-and-mortar ambitions, WSJ says
Goldman Sachs (GS) denies manipulating commodities, Reuters reports
Boeing (BA) has no plans for long-range 737 MAX, Reuters reports
Amazon (AMZN) could launch travel service, Skift reports
SYNDICATE
Ashford Hospitality Prime (AHP) files to sell 8.8M units for limited partners
BGC Partners (BGCP) files to sell 20M shares of Class A Common Stock
Castle Brands (ROX) files to sell $10M in common stock
Celsus Therapeutics (cltx) files to sell $46M in common stock
Lexicon (LXRX) 49.751M share Spot Secondary priced at $1.005
New York Mortgage (NYMT) files to sell 15M shares of common stock
On Track Innovations (OTIV) 6.25M share Spot Secondary priced at $1.60
On Track Innovations (OTIV) files to sell common stock
Perrigo (PRGO) 5.92M share Secondary priced at $152.00
TCP Capital (TCPC) files to sell 5.9M shares of common stock
via Zero Hedge http://ift.tt/1AsgbKj Tyler Durden