Posts Tagged ‘Motorola’
Frontrunning: May 7
Tuesday, 07 May 2013 06:24
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  • Microsoft prepares U-turn on Windows 8 (FT), Microsoft admits failure on Windows 8 (MW), After Bumpy Start, Microsoft Rethinks Windows 8 (NYT)
  • China reports four more bird flu deaths, toll rises to 31 (Reuters)
  • Republicans shift stance on US budget (FT)
  • NYC Tallest Condo Corridor Gets New Entrant With Steinway (BBG)
  • U. (Read more…)S. Says China’s Government, Military Used Cyberespionage (WSJ)
  • China rejects Pentagon charges of military espionage (Reuters)
  • Bank of China Cuts Off North Korean Bank (WSJ)
  • Libya defense minister quits over siege of ministries by gunmen (Reuters)
  • London Recruiter Says City Job Vacancies Rose 19% (BBG)
  • Colleges Cut Prices by Providing More Financial Aid (WSJ)  or, said otherwise, loans
  • Jeweler agrees to plead guilty in KPMG insider-trading case (LA Times)

 

Overnight Media Digest

WSJ

* The SEC has put local government officials on notice that it is closely monitoring the way they describe their cities’ fiscal health, charging Harrisburg, Pennsylvania, with securities fraud for allegedly failing to disclose information on its financial troubles.

* Deep in the president’s new budget is a plan that could transform public housing in the nation by allowing housing authorities to increasingly set time limits or work requirements for participants.

* Bank of America agreed to pay MBIA $1.7 billion to settle a dispute over soured mortgage securities, in the second-largest U.S. bank’s latest bid to reduce legal risks tied to its home lending business.

* Adobe Systems, publisher of graphics software such as Photoshop, is pulling back from the packaged software business and doubling down on delivering its design tools through an online service.

* A fledgling mobile-payments system in Rwanda is both an important pilot project for Visa and a key part of the government’s plan to make the country into the “Singapore of Africa.”

* Americans are finding it slightly easier to get a mortgage, yet banks remain wary of lending to would-be home buyers with weaker credit histories, a potential stumbling block for the housing recovery.

* TPG is beginning the sales process for China’s UniTrust Finance & Leasing Corp this week. UniTrust provides leasing services to clients in a number of industries.

* The private-equity firms buying BMC Software Inc have also discussed buying Compuware Corp and combining the two software companies, according to people familiar with the matter

 

FT

Facebook plans to incorporate video advertising in its newsfeed starting July as the company looks to new revenue streams.

IMG Worldwide this year received an unsolicited bid of over $2 billion from private equity company Colony Capital.

Bank of America and MBIA Inc have resolved a long-running legal tussle with the bank agreeing to pay the bond insurer $1.7 billion.

The European Commission said Google’s Motorola Mobility was abusing its position in the market by seeking and enforcing an injunction against Apple in Germany over a wireless patent.

The U.S. Treasury plans to sell the remainder of its stake in General Motors acquired when the government bailed out the automaker.

Environmentalists have expressed their anger over a plan to build a convention center in Alabama using money given by BP to restore the Gulf of Mexico coast.

Senior officials at the U.S. Commodities Futures Trading Commission are evaluating whether cyber-currency Bitcoin could fall under their regulatory jurisdiction.

 

NYT

* Pfizer will sell Viagra, its billion dollar erectile dysfunction drug, directly to men with a doctor’s prescription through its website.

* Google Glass, a wearable computer not yet formally released, is raising questions about whether it will distract drivers, upend relationships and strip people of what little privacy they still have in public.

* The electronics contractor Foxconn, known for its ties to Apple, is moving to develop its own products, like a flat-screen TV.

* YouTube, the world’s largest video website, will announce this week a plan to let some video makers charge a monthly subscription to their channels.

* One of the economic mysteries of the last few years has been the bigger-than-expected slowdown in health spending, a trend that promises to bolster wages and help close the wide federal deficit over the long term – but only if it persists.

 

Canada

THE GLOBE AND MAIL

* The Ontario government will draw up new rules to make sure local residents have a say in where future power plants and other energy infrastructure is built, in a bid to avoid a repeat of the costly cancellation of two gas plants before the 2011 election.

* A New Brunswick farmer who languished for more than a year in a Beirut jail cell on allegations he shipped rotten potatoes to Algeria is suing the Canadian government, arguing it didn’t protect his Charter rights.

Reports in the business section:

* The Quebec government is boosting its take from a mining sector already beset by a global downturn, introducing minimum royalty payments and other tax increases aimed at generating up to C$200 million ($198.25 million) a year.

NATIONAL POST

* The Harper government has a plan to “dismantle vital public services and drive down wages of all Canadians,” according to Paul Moist, president of the Canadian Union of Public Employees (CUPE). Moist’s inflated rhetoric appeared in the National Post after the government introduced plans to give Cabinet powers to oversee collective bargaining between Crown corporations and their employees.

* On the eve of what could be a critical debate on transit funding in Toronto, Mayor Rob Ford continued to lob political threats at those who dare to debate taxes and tolls.

“If 30 councillors want to put their name to implement taxes on the back of hardworking taxpayers in the city, I’ll hold them accountable in the next election. I’ll guarantee that,” Ford said on Monday.

FINANCIAL POST

* Loblaw Cos Ltd, country’s biggest grocer, debuted on Monday its new PC Plus loyalty card in Ontario and plans to roll it out nationally by the end of the year to its Real Canadian Superstore, Zehrs, Provigo, Atlantic Superstore divisions.

 

China

SHANGHAI SECURITIES NEWS

- China’s cabinet issued a detailed list of reforms, including a call for a specific plan for full convertibility of the yuan under the capital account, indicating the government’s determination to push forward economic reform.

- Economists expect China will post a slew of weak economic data for April in all three major fields of foreign trade, investment and consumption, due in part to weak global economic and market conditions. The data is due this week and next.

PEOPLE’S DAILY

- Data showed Beijing’s suffered from serious air pollution on Monday, despite a sharp rise in temperature in the Chinese capital. Experts believe that air quality in Beijing is not likely to improve much in the near term.

- China has become Germany’s third largest investor, investing in 98 projects in the European country last year, with significant investment in auto parts and machinery manufacturing.

CHINA SECURITIES JOURNAL

- The People’s Bank of China is likely to let banks raise their deposit rates to up to 1.2 times the central bank’s benchmark rate later this year, up from the current cap of 1.1 times the benchmark, in a further step to liberalise the country’s rate regime, according to analysts and industry insiders.

- Experts believe foreign capital inflows into China’s red-hot property and local-government projects were key factors that prompted the foreign exchange regulator to announce tightened rules to curb inflows on Sunday.

CHINA DAILY

- Luxury car sales in China, including Audi, BMW, and Mercedes-Benz, slowed to four percent growth in the first quarter this year, down from 13 percent annual growth last year, amid a central government clampdown on government extravagance, the China Association of Automobile Manufacturers said.

SHANGHAI DAILY

- Shanghai’s government is inviting tenders for the construction of a 77,492-square-metre public transport hub, including five bus terminals, car and taxi parking lots, wash rooms, and six lounges, to serve visitors to Shanghai Diisneyland, which is scheduled to open in 2015.

 

Corporate Finance

* Antero Resources, an oil and natural gas company controlled by Warburg Pincus LLC, is preparing for an initial public offering that could value it at as much as $10 billion, three people familiar with the matter said.

* Third Point, the hedge fund run by billionaire Dan Loeb, has hired banks for an initial public offering of its reinsurer business, according to three sources familiar with the matter.

* IMG Worldwide, the marketing group put up for sale by Forstmann Little, drew an unsolicited bid from California private equity firm Colony Capital of more than $2 billion this year, the Financial Times reported.

* JPMorgan Chase & Co has yet to convince three of its largest shareholders to support the company in an upcoming vote on whether Jamie Dimon should retain both his CEO and Chairman titles, the Wall Street Journal said.

 

ANALYST RESEARCH

Upgrades

Abercrombie & Fitch (ANF) upgraded to Outperform from Market Perform at Wells Fargo
Apollo Global (APO) upgraded to Outperform from Perform at Oppenheimer
Arch Coal (ACI) upgraded to Neutral from Sell at Goldman
Brunswick (BC) upgraded to Buy from Neutral at Longbow
Gap (GPS) upgraded to Outperform from Market Perform at Wells Fargo
Noah Holdings (NOAH) upgraded to Buy from Neutral at BofA/Merrill
Tyson Foods (TSN) upgraded to Buy from Hold at Miller Tabak
Urban Outfitters (URBN) upgraded to Outperform from Market Perform at Wells Fargo

Downgrades

Aeropostale (ARO) downgraded to Sell from Hold at Brean Capital
AIG (AIG) downgraded to Neutral from Buy at Goldman
Alpha Natural (ANR) downgraded to Sell from Neutral at Goldman
American Eagle (AEO) downgraded to Market Perform from Outperform at Wells Fargo
Coach (COH) downgraded to Market Perform from Outperform at Wells Fargo
Iconix Brand (ICON) downgraded to Hold from Buy at Brean Capital
International Rectifier (IRF) downgraded to Market Perform at JMP Securities
Mettler-Toledo (MTD) downgraded to Hold from Buy at Jefferies
TJX (TJX) downgraded to Market Perform from Outperform at Wells Fargo
Tiffany (TIF) downgraded to Market Perform from Outperform at Wells Fargo

Initiations

Ann Inc. (ANN) initiated with a Market Perform at Wells Fargo
BioMarin (BMRN) initiated with a Buy at Goldman
Carpenter Technology (CRS) initiated with an Outperform at Credit Suisse
Chico’s FAS (CHS) initiated with an Outperform at Wells Fargo
Chimerix (CMRX) initiated with an Outperform at William Blair
EverBank Financial (EVER) initiated with an Outperform at Credit Suisse
Evertec (EVTC) initiated with a Buy at Deutsche Bank
Infinity Pharmaceuticals (INFI) initiated with a Neutral at Goldman
J.C. Penney (JCP) initiated with an Underperform at Wells Fargo
Kohl’s (KSS) initiated with a Market Perform at Wells Fargo
lululemon (LULU) initiated with a Market Perform at Wells Fargo
Macy’s (M) initiated with a Market Perform at Wells Fargo
Michael Kors (KORS) initiated with an Outperform at Wells Fargo
Nordstrom (JWN) initiated with a Market Perform at Wells Fargo
Ocwen Financial (OCN) initiated with an Outperform at Wells Fargo
Omthera (OMTH) initiated with an Overweight at Piper Jaffray
Pharmacyclics (PCYC) initiated with a Neutral at Goldman
Pinnacle Foods (PF) initiated with an Outperform at BMO Capital
Pinnacle Foods (PF) initiated with an Outperform at Credit Suisse
Rally Software (RALY) initiated with a Buy at Deutsche Bank
Rally Software (RALY) initiated with an Outperform at JMP Securities
rue21 (RUE) initiated with a Market Perform at Wells Fargo
Sanchez Energy (SN) initiated with a Buy at SunTrust
T-Mobile USA (TMUS) initiated with an Underperform at BofA/Merrill
Walter Investment (WAC) initiated with a Market Perform at Wells Fargo

HOT STOCKS

Crest Financial, Clearwire’s (CLWR) largest minority stockholder, urged Clearwire holders to reject proposed merger with Sprint Nextel (S)
Baidu (BIDU) acquired PPS online video business for $370M
Disney (DIS), Electronic Arts (EA) announced multi-year Star Wars games agreement

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Vitamin Shoppe (VSI), Forest Oil (FST), Alleghany (Y), CUI Global (CUI), Plains All American (PAA), Hologic (HOLX), Nautilus (NLS)

Companies that missed consensus earnings expectations include:
Cimarex Energy (XEC), Cinemark (CNK), Regis (RGS), Liberty Global (LBTYA), Midstates Petroleum (MPO), Skilled Healthcare (SKH), First Solar (FSLR)

Companies that matched consensus earnings expectations include:
RDA Microelectronics (RDA), Endeavour Silver (EXK)

NEWSPAPERS/WEBSITES

  • Some of the world’s biggest handset makers and telecom carriers are embracing alternative mobile operating systems this year in an attempt to become credible challengers to smartphones run by Apple (AAPL) and Google (GOOG), the Wall Street Journal reports
  • JPMorgan Chase (JPM) has yet to persuade three of its largest shareholders–BlackRock (BLK), Vanguard Group and Fidelity Investments–to back the company in a coming vote over whether James Dimon should retain his dual role of chairman and CEO, the Wall Street Journal reports
  • SoftBank (SFTBF) President Masayoshi Son said he will go to the U.S. today to meet Sprint Nextel’s (S) major shareholders about the Japanese company’s takeover bid, after rival bidder Dish Network (DISH) said a U.S. company would make a better suitor, Reuters reports
  • Microsoft (MSFT) has sold 100M Windows 8 licenses in the six months since launch, but wants to combat sputtering interest in its flagship software with a substantial update to make it easier to use, and compatible with smaller tablets, Reuters reports
  • Rio Tinto (RIO) will likely pursue a $5B expansion of its iron ore output in Australia, CEO Sam Walsh said, according to two people present at a meeting with investors and analysts, Bloomberg reports
  • Saudi Arabia, home to the biggest Arab bourse, seeks to boost institutional investments in its $390B stock market as the top OPEC producer weighs plans to allow foreigners to buy shares directly, Bloomberg reports

SYNDICATE

Colfax (CFX) files to sell 10M shares of common stock
Franklin Street (FSP) files to sell 15M shares of common stock
Generac (GNRC) files to sell 9M shares of common stock for holders
General Growth (GGP) files to sell 23.4M shares for Blackstone Group funds
Golub Capital (GBDC) files to sell 5.5M share of common stock
Hertz Global (HTZ) announces sale of 49.8M shares of common stock by holders
Local (LOCM) files to sell 4.57M shares of common stock for holders
Parametric Sound (PAMT) files to sell $75M of common stock and warrants
Stemline (STML) files to sell common stock
Teekay LNG (TGP) files to sell $100M in common units representing limited partners
Vantiv (VNTV) to offer 38.6M shares of Class A common stock for holders
Velti (VELT) files to sell up to 16.53M ordinary shares for holders

    



 
Frontrunning: April 26
Friday, 26 April 2013 06:21
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  • Reinhart and Rogoff: Responding to Our Critics (NYT)
  • Differences with centre-right delay Italy’s Letta (Reuters)
  • Italy’s Letta moves forward to shape government (Reuters)
  • China’s leaders warn on financial risks (FT)
  • Norway oil fund makes big move from bonds to stocks (FT) – worked wonders for the Bank of Israel

    • (Read more…)

  • Smuggling milk is the new smuggling heroin in HK: Milk Smugglers Top Heroin Courier Arrests in Hong Kong (BBG)
  • RenTec’s mean reversion models fail on BOJ lunacy: Yen Bets Don’t Add Up for a Fund Giant (WSJ)
  • From ‘Fabulous Fab’ to Grad Student (WSJ)
  • BOJ in credibility test as divisions emerge over inflation target (Reuters)
  • Boston Bombing Suspect Moved from hospital to prison (WSJ)
  • Provopoulos Says ECB May Never Need to Use Bond-Buying Program (BBG) which is good because, legally, it doesn’t exist
  • Cypriot Bank Deposits Fell in March Amid Bailout Negotiations (BBG)… and then were halted by Capital Controls
  • Senate acts to end days of flight delays (FT)
  • CBOE Preaches to Vegas Choir as ‘Glitch’ Crashes Exchange (BBG)

 

Overnight Media Digest

WSJ

* Late Thursday afternoon, in a 63-to-30 procedural vote, the Senate cleared the way for passage of a bill to effectively end tax-free shopping online. A final Senate vote is scheduled for May 6.

* Marlboro maker Altria Group Inc on Thursday said it would roll out its own version of e-cigarettes in the second half of 2013 amid signs the battery-powered devices – which convert heated, nicotine-laced liquid into vapor – are beginning to erode sales of traditional cigarettes in the United States, less than a decade after surfacing.

* European Union regulators have given Google Inc’s competitors and other interested parties a month to respond to the search engine’s proposals to address concerns that it is abusing its dominance in Internet search.

* Japan’s transport ministry Friday said it is planning to lift the order grounding flights of Boeing Co 787 Dreamliners by Japanese airlines, following a formal decision by its U.S. counterpart to do the same.

* Exxon Mobil Corp’s first-quarter profit rose slightly compared to last year but its production of oil and natural gas fell, as the energy giant continued to struggle in a world where large oil-and-gas fields are harder to find.

* Industrial conglomerate 3M Co, joining a host of U.S. companies downgrading expectations for the year, reduced its forecast for 2013 earnings on Thursday but said it would proceed with plans to increase spending on new factories and research.

* Financier George Soros has bought a 7.91 percent stake in J C Penney Co, a vote of confidence in the beleaguered retailer as it tries to reverse a deep decline in sales.

 

FT

The Serious Fraud Office has begun a criminal investigation into Eurasian Natural Resources Corp, the miner which had also recently faced scrutiny from two internal investigations into allegations of fraud in Kazakhstan and Africa.

After it was announced that the UK had avoided a triple-dip recession, Finance Minister George Osborne said the economy was “healing”, having grown 0.3 percent in the first quarter of 2013.

UK Financial Investments Chief Executive Jim O’Neil resigned, casting further doubt over how quickly the UK will be able to reprivatise its bailed-out banks.

Verizon Communications is considering offering Vodafone $100 billion in cash and stock for its minority stake in Verizon Wireless as pressure from the U.S. mounts to negotiate a deal.

U.S. regulators, including the Federal Reserve and Treasury, have called for alternative interest rate benchmarks to replace the scandal-hit Libor interbank borrowing rate.

Amazon.com’s first-quarter net income declined 37 percent to $82 million despite its gross profit margin increasing during the period.

 

NYT

* With the cost of some lifesaving cancer drugs exceeding $100,000 a year, more than 100 influential cancer specialists from around the world have taken the unusual step of banding together in hopes of persuading some leading pharmaceutical companies to bring prices down.

* Samsung Electronics Co said its first-quarter net income jumped 42 percent from a year earlier to a record high thanks to robust smartphone sales even during a typically slow season for the electronics market.

* Federal regulators on Thursday admonished some of the nation’s largest banks for offering payday-style loans, short-term costly credit tied to customers’ checking accounts.

* George Soros, the hedge fund billionaire, on Thursday disclosed a 7.9 percent stake in J C Penney, with 17.4 million shares, according to a securities filing. The stake is passive, meaning Soros will not try to exert influence on the embattled retailer.

* European Union regulators took another step on Thursday toward reaching an antitrust settlement with Google Inc , asking the company’s competitors to review changes proposed by Google to resolve concerns with its Internet search and advertising business.

* Trading on the Chicago Board Options Exchange, the nation’s largest options exchange, was delayed for several hours on Thursday because of computer problems, the latest incident to highlight the vulnerability of markets to technological shocks.

 

Canada

THE GLOBE AND MAIL

* Raed Jaser, who is accused of plotting an “al-Qaeda supported” scheme to kill people by derailing a Via passenger train, was jailed in Toronto nine years ago and facing deportation.

* The Quebec government has unveiled an ambitious 10 year, C$92.3 billion ($90.5 billion) infrastructure plan in which projects will be awarded under a new set of rules to ensure “transparency and integrity.”

* The Toronto Police Services Board is willing to consider putting armed police officers at Billy Bishop airport so that passengers can go through U.S. customs before boarding.

The U.S. Department of Homeland Security requires that armed police are present for U.S. workers to perform customs checks.

Reports in the business section:

* After four consecutive quarters of falling profit, Potash Corp of Saskatchewan said Thursday it’s seeing higher sales to China, Latin America and India as customers are lured back by low prices after a buyers’ strike last year.

* Canadian Imperial Bank of Commerce is edging back into the United States as the bank hunts for growth, having retreated to Canada several years ago following a series of costly missteps south of the border.

* Loblaw Cos Ltd is moving to bolster safety audits of its Joe Fresh clothing factories in Bangladesh. The audits – which are comparable to others in the industry – fail to address the issue of building construction or integrity.

* Department store retailer Sears Canada Inc is determined to follow through on its turnaround efforts and operate as a retailer, it will look at opportunities as they arise to sell operations and even stores, chief executive officer Calvin McDonald said on Thursday morning.

NATIONAL POST

* The triple crime of abduction, rape and murder will likely soon be punishable by at least 40 years in prison after the federal government lent its support to a Conservative private member’s bill Thursday.

FINANCIAL POST

* Hemmed in by uncooperative jurisdictions to the south, west and east, Alberta is looking upward, exploring at least two new northern projects that would help the province get its oil to tidewater, making it available for export to overseas markets.

* Imperial Oil Ltd will have to scale back plans to double production by the end of the decade if planned oil pipelines are delayed, its new CEO said Thursday.

 

China

CHINA SECURITIES JOURNAL

- Jiangxi province, in southeast China, has confirmed the first case of human infection with the bird flu on Thursday. The latest infected is a 69-year-old male retiree, according to Department of Health of Jiangxi province.

SHANGHAI SECURITIES NEWS

- The total net profit reported by 2,385 Chinese-listed companies reached 1.93 trillion yuan ($313 billion) in 2012, up 0.62 percent from a year earlier. However, excluding results of financial firms, total net profit of the remaining listed companies fell 12.28 percent from a year earlier.

CHINA DAILY

- China’s steel market may remain weak next month, although it is a peak consumption season traditionally, according to the country’s steel industry group. Demand remains lukewarm as housing starts are falling and the overall manufacturing sector remains weak said the China Iron and Steel Association.

- China’s rapid urbanization and rising demand will support the growth of specialty chemicals maker Clariant after sales more than doubled in the region, the firm said on Thursday.

PEOPLE’S DAILY

- Chinese Vice Premier Wang Yang met with Swiss Vice President and Foreign Minister Didier Burkhalter on Thursday. Wang said China and Switzerland enjoy sound development of bilateral ties and their economies are highly complementary

Fly on the Wall 7:00 AM Market Snapshot

ANALYST RESEARCH

Upgrades

AXIS Capital (AXS) upgraded to Outperform from Market Perform at Raymond James
Allscripts (MDRX) upgraded to Overweight from Equal Weight at Morgan Stanley
Boeing (BA) upgraded to Buy from Hold at BB&T
Boston Scientific (BSX) upgraded to Outperform from Neutral at Credit Suisse
Cameron (CAM) upgraded to Outperform from Market Perform at Raymond James
Commercial Metals (CMC) upgraded to Buy from Hold at Jefferies
Lender Processing (LPS) upgraded to Outperform from Perform at Oppenheimer
LogMeln (LOGM) upgraded to Outperform from Neutral at Cowen
PennyMac (PMT) upgraded to Outperform from Market Perform at Keefe Bruyette
PulteGroup (PHM) upgraded to Top Pick from Outperform at RBC Capital
Regions Financial (RF) upgraded to Buy from Hold at Jefferies
Teradyne (TER) upgraded to Buy from Neutral at UBS
Unilever (UN) upgraded to Hold from Sell at Societe Generale
bebe stores (BEBE) upgraded to Buy from Neutral at Janney Capital

Downgrades

AB InBev (BUD) downgraded to Conviction Sell from Sell at Goldman
Alkermes (ALKS) downgraded to Underperform from Neutral at BofA/Merrill
AmerisourceBergen (ABC) downgraded to Neutral from Outperform at RW Baird
Baidu (BIDU) downgraded to Hold from Buy at Brean Capital
Carpenter Technology (CRS) downgraded to Neutral from Overweight at JPMorgan
Embraer (ERJ) downgraded to Sell from Neutral at Citigroup
F5 Networks (FFIV) downgraded to Market Perform from Outperform at FBR Capital
Hancock Holding (HBHC) downgraded to Hold from Buy at Wunderlich
ITT Educational (ESI) downgraded to Sell from Neutral at Compass Point
Ingredion (INGR) downgraded to Hold from Buy at BB&T
KLA-Tencor (KLAC) downgraded to Outperform from Buy at CLSA
National Instruments (NATI) downgraded to Neutral from Overweight at JPMorgan
PerkinElmer (PKI) downgraded to Buy from Strong Buy at ISI Group
PetroLogistics (PDH) downgraded to Neutral from Buy at Citigroup
Raymond James (RJF) downgraded to Neutral from Buy at Citigroup
Sandridge Mississippian Trust (SDT) downgraded to Underperform at Oppenheimer
USG (USG) downgraded to Outperform from Top Pick at RBC Capital
Windstream (WIN) downgraded to Neutral from Buy at BofA/Merrill

Initiations

Clayton Williams (CWEI) initiated with a Hold at Canaccord
Eaton (ETN) initiated with a Buy at SunTrust
TherapeuticsMD (TXMD) initiated with a Buy at Jefferies

HOT STOCKS

Citi Securities and Fund Services (C) to acquire ING’s (ING) custody and securities services business in seven Central and Eastern European markets
Yahoo (YHOO) Chairman Fred Amoroso resigned, to leave board
Citigroup (C) announced $1.2B stock repurchase program, 1c per share dividend
Wellpoint (WLP), subsidiaries’ ratings removed from “under review” by A.M. Best
Eastman Chemical (EMN) said on track to achieve double-digit earnings growth in FY13
Dresser-Rand (DRC) reaffirmed FY13 operating income, bookings guidance
Expedia (EXPE) backed adjusted FY13 EBITDA growth view in “the low double digits”
Coinstar (CSTR) proposed name change to Outerwall
UPS (UPS), Teamsters agreed on new five-year contracts

EARNINGS

Companies that beat consensus earnings expectations last night and today include:
Covidien (COV), Olin Corp. (OLN), Dresser-Rand (DRC), Dolby (DLB), NetSuite (N), Chubb (CB), Wynn Resorts (WYNN), Coinstar (CSTR), Starbucks (SBUX), Expedia (EXPE), Deckers Outdoor (DECK), Amazon.com (AMZN)

Companies that missed consensus earnings expectations include:
Corporate Office Properties (OFC), Santander Chile (BSAC), Leggett & Platt (LEG), PerkinElmer (PKI), Baidu (BIDU), Celadon Group (CGI), Clearwire (CLWR)

Companies that matched consensus earnings expectations include:
Tellabs (TLAB), Intermolecular (IMI), Superior Energy (SPN), Tesaro (TSRO)

NEWSPAPERS/WEBSITES

  • Japan’s transport ministry today said it’s planning to lift the order grounding flights of Boeing (BA) 787 Dreamliners by Japanese airlines. The ministry also said it’s asking the country’s airlines to implement extra safety steps to ensure the plane’s safety, the Wall Street Journal reports
  • U.S. companies are pulling back on borrowing, which could put a drag on the U.S. economy and make it harder for banks to break out of their long slump. Outstanding loans by the biggest banks to U.S. companies fell 9% in the first two weeks of April compared with the end of March, according to Fed data, the Wall Street Journal reports
  • The Bank of Japan forecast today that inflation will increase to about 2% towards the latter half of the next three years due to its massive stimulus plan, but analysts say it may be too optimistic, Reuters reports
  • Danone SA (DANOY) and Yakult Honsha Co. will dissolve a strategic tie-up, sources say, Reuters reports
  • Top Chinese leaders said the country must guard against financial risks and boost consumption amid signs that the recovery in its economy is faltering, Bloomberg reports
  • Google’s (GOOG) Motorola Mobility unit isn’t entitled to the potentially billions of dollars it sought for its patents on technology used throughout the electronics community, a federal judge ruled in a victory for Microsoft Corp. (MSFT), Bloomberg reports

SYNDICATE

Accenture (ACN) files to sell 41.2M Class A ordinary shares
Altisource Residential (RESI) 12.5M share Secondary priced at $18.75
First Security (FSGI) files to sell 60.74M shares of common stock for holders
NeuroMetrix (NURO) files to sell $10M of units
Saint Joe Co. (JOE) files to sell 25.04M shares of common stock
Spectranetics (SPNC) 4.75M share Secondary priced at $18.00

    



 
Daily US Opening News And Market Re-Cap: April 23
Tuesday, 23 April 2013 07:09
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From RanSquawk:

  • Chinese HSBC Flash Manufacturing PMI (Apr) M/M 50.5 vs. Exp. 51. (Read more…)5 (Prev. 51.6) – HSBC’s chief China economist Qu Honqbin said new export orders contracted, suggesting external demand for China’s exporters remains weak.
  • Analysts at Credit Suisse say a cut to the ECB’s interest rate is likely following the flash Euro area PMI’s this morning and forecast a 25bps cut.
  • German Manufacturing PMI (Apr A) M/M 47.9 vs. Exp. 49 (Prev. 49) and German Services PMI (Apr A) M/M 49.2 vs. Exp. 51 (Prev. 50.9)

Market Re-Cap

Yet another round of less than impressive macroeconomic data from China and Eurozone failed to deter equity bulls and heading into the North American crossover, stocks in Europe are seen higher, with tech and financials as best performers. The disappointing PMI data from Germany, where the Services component fell below the expansionary 50, underpins the view that the ECB will likely cut the benchmark interest rates next month and may even indicate that it is prepared to provide additional support via LTROs. As a result, the EONIA curve bull flattened and the 2/10s German spread flattened by almost 3bps to levels not seen since June 2012. In turn, Bund future hit YTD peak at 146.77 and the next technical level to note is 146.89, 1st June 2012 high. However it is worth noting that the upside traction is also being supported by large coupon payments and redemptions from France, the second highest net market inflow for 2013.

Going forward, market participants will get to digest the release of the latest New Home Sales data from the US, as well as the weekly API report. Also, Apple will report its earnings after the closing bell on Wall Street.

Asian Headlines

Chinese HSBC Flash Manufacturing PMI (Apr) M/M 50.5 vs. Exp. 51.5 (Prev. 51.6); New exports sub-index falls to 48.6 from 50.5 in March.

- HSBC’s chief China economist Qu Honqbin said new export orders contracted, suggesting external demand for China’s exporters remains weak. Qu also stated that Beijing is expected to respond strongly to sustain the economic recovery by increasing efforts to boost domestic investment and consumption in the coming months.

Morgan Stanley poll shows that investors are becoming more bearish on China.

S&P said there is more than 1/3 chance S&P will lower Japan’s AA- long term sovereign rating and that the Japan downgrade risk arises from risks linked to government initiatives and uncertainty of their success.

EU & UK Headlines

Analysts at Credit Suisse say a cut to the ECB’s interest rate is likely following the flash Euro area PMI’s this morning and forecast a 25bps cut. Analysts note that the data does not materially change their forecast as they were anticipating a cut in Q2.

Eurozone Manufacturing PMI (Apr A) M/M 46.5 vs. Exp. 46.8 (Prev. 46.8) and Eurozone Services PMI (Apr A) M/M 46.6 vs. Exp. 46.6 (Prev. 46.4)

Chief Economist at Markit noted that the survey is signalling a worrying weakness in the economy at the start of the second quarter, with signs that the downturn is more likely to intensify further in coming months rather than ease.

- German Manufacturing PMI (Apr A) M/M 47.9 vs. Exp. 49 (Prev. 49)

- German Services PMI (Apr A) M/M 49.2 vs. Exp. 51 (Prev. 50.9)

- French Manufacturing PMI (Apr) M/M 44.4 vs. Exp. 44.3 (Prev. 44.0)

- French Services PMI (Apr) M/M 44.1 vs. Exp. 42.0 (Prev. 41.3)

German Bild reported citing the head of Italian party Five Start Movement Beppe Grillo that the Italian state will probably run out of money by the autumn.

- As a guide, Italy’s President Napolitano began consultation on the formation of government in Italy and is expected to meet all main parties today.

In the UK, official data showed public sector net borrowing was GBP 120.6bln in the 2012/13 fiscal year, about GBP 300mln less than the previous year, after the effect of various one-off transfers was stripped out (Royal Mail’s pension fund to the government’s books and the Treasury’s seizure of the Bank of England’s earnings from its quantitative easing programme).

Also of note, UK DMO raised 2013-2014 gilt sales target to GBP 155.7bln vs. Prev. planned GBP 151bln.

BarCap Pan-Eur aggregate month end extension: +0.09 yrs

BarCap Sterling aggregate month end extension: +0.05 yrs

US Headlines

Latest JP Morgan Treasury Client Survey shows longs at 13% (Prev. 21%), neutrals at 62% (Prev. 60%) and shorts at 25% (Prev. 19%)

US BarCap month end extension: +0.06 yrs

Equities

Yet another round of less than impressive macroeconomic data from China and Eurozone failed to deter equity bulls and heading into the North American crossover, stocks in Europe are seen higher, with tech and financials as best performers.

Apple won patent infringement case brought by Google’s Motorola over phone sensors, which could have hindered imports of iPhone 4 into the US.

For a full rundown of EU equity news, please refer to European Equity Opening News report located in research section. Complete rundown of US equity news will be available on the website at 1400BST (0800CDT). See “US Pre-Market Earnings Snapshot” headline on the website for a summary of today’s earnings.

FX

The risk averse sentiment saw EUR/USD break through the 1.3000 level to the downside which now exposes the 62% retracement of this month’s recover at 1.2920, where a close below would trigger a deeper sell-off towards 1.2746. On the other hand, resistance levels are seen at 1.3129, the April 19th high and then at 1.3202, last week’s high.

GBP/USD is also testing a strong support at 1.5190, the 38% retracement of the March to April recovery, where a closing break below would indicate that market participants may then target 1.5054, the 62% retracement. On the other hand, resistance levels are seen at 1.5308, the mid-point of the recent sell-off and then at 1.5368 which is the April 19th high.

Although USD/JPY traded lower, the underlying momentum remains to the upside and it is more likely than not that market participants will soon use the recent bout of selling pressure as an opportunity to establish long positions.

Technically, resistance levels are seen at 100.00 and then at 101.45 level, the April 2009 high. Once broken, market participants will look to target 105.75, the 62% retracement of the June 2007 to October 2011 sell-off.

Commodities

WTI heads towards the American session trading down around USD 1.20, following lower than expected Chinese HSBC Flash Manf. PMI data for April (50.5 vs. Exp. 51.5 M/M), as well as less than impressive European PMI releases.

Citigroup says it sees USD 90/bbl representing a price ceiling not a floor within five years. In addition, the bank commented that US oil output may rise by 3mln bpd by 2020.

UBS revise their 1-month gold price target to USD 1,425 from USD 1,725, and the 3-month forecast to USD 1,500 from USD 1,850. Analysts note that gold will have to continue rebuilding and regaining its investor base over the next month and see prices consolidating around the current levels.

- Separately, Morgan Stanley cut 2013 silver target 19% to USD 27.17 and cuts silver 2014 target 15% to USD 29.48.

Analysts also cut 2013 copper target 9% to USD 3.53, cut 2013 aluminium estimate 11% to USD 0.90 and sees iron ore average USD 128.00 in Q3 and USD 125 in Q4.

Gold prices edged lower throughout the session, driven by weak macroeconomic data from China and Europe this morning. Technically, support levels are seen at USD 1404.00 and then at USD 1380.63, the mid-point of the latest recovery. Silver underperformed, down around 2.50% and looks set to make a test on USD 22.07 which is last week’s low.