Выбор редакции

Frontrunning: February 20

  • Facebook CEO Raises Dealmaker Profile With $19 Billion Takeover (BBG)
  • WhatsApp’s Founder Goes From Food Stamps to Billionaire (BBG)
  • U.S. Feels Putin's Sharp Elbows in Ukraine (WSJ)
  • PBOC Drains Cash as Overnight Rate Slides to Lowest in 10 Months (BBG)
  • Fed Puts Rate Increase on the Radar (Hilsenrath)
  • Banks Flouting Bonus Rules in Denmark Set to Be Named by FSA (BBG)
  • Work Set to Resume on Upgrading Panama Canal (WSJ)
  • Euro-Area Recovery Loses Pace as Manufacturing Weakens (BBG) - uh, what recovery?
  • Ukraine Exposes EU Policy Disarray (WSJ)
  • Diamonds and deals as Danone struggles for China bounce (Reuters)
  •  Singapore’s Soaring Land Prices ‘Suicidal’ for Developers (BBG)

 

Overnight Media Digest

WSJ

* The frenzy to acquire fast-growing technology startups reached new heights on Wednesday as Facebook Inc announced its largest acquisition ever, saying it would pay at least $16 billion for WhatsApp, a text messaging application with 450 million users around the world who pay little or no money for it.

* When Federal Reserve officials last met at the end of January, they were surprised by the strength of the economy, cheered by the optimism of consumers and convinced they should continue to dismantle the Fed's economic stimulus campaign, according to an account the Fed released Wednesday.

* In a surprising move, Gap Inc informed its employees on Wednesday that it would set $9 as the minimum hourly rate for its United States work force this year and then establish a minimum of $10 next year.

* Regulators are taking another crack at their effort to keep the web free and open, introducing new rules that would discourage Internet service providers from charging companies to stream their movies, music and other content through a faster express lane.

* Brian Moynihan, the chief executive of Bank of America , received about $12.5 million in restricted stock grants for 2013, according to a regulatory filing.

* Shares of Safeway Inc surged in after-market trading on Wednesday after the supermarket chain disclosed that it was "in discussions concerning a possible transaction involving the sale of the company."

* Tyler and Cameron Winklevoss, famous for their legal battle with the Facebook founder Mark Zuckerberg, have created a financial index that provides a regularly updated figure for the price of Bitcoin.

* A Brookings Institution study found that income inequality was sharply higher in vibrant cities like New York than in less-dynamic ones like Columbus, Ohio.

 

NYT

* The frenzy to acquire fast-growing technology startups reached new heights on Wednesday as Facebook Inc announced its largest acquisition ever, saying it would pay at least $16 billion for WhatsApp, a text messaging application with 450 million users around the world who pay little or no money for it.

* When Federal Reserve officials last met at the end of January, they were surprised by the strength of the economy, cheered by the optimism of consumers and convinced they should continue to dismantle the Fed's economic stimulus campaign, according to an account the Fed released Wednesday.

* In a surprising move, Gap Inc informed its employees on Wednesday that it would set $9 as the minimum hourly rate for its United States work force this year and then establish a minimum of $10 next year.

* Regulators are taking another crack at their effort to keep the web free and open, introducing new rules that would discourage Internet service providers from charging companies to stream their movies, music and other content through a faster express lane.

* Brian Moynihan, the chief executive of Bank of America , received about $12.5 million in restricted stock grants for 2013, according to a regulatory filing.

* Shares of Safeway Inc surged in after-market trading on Wednesday after the supermarket chain disclosed that it was "in discussions concerning a possible transaction involving the sale of the company."

* Tyler and Cameron Winklevoss, famous for their legal battle with the Facebook founder Mark Zuckerberg, have created a financial index that provides a regularly updated figure for the price of Bitcoin.

* A Brookings Institution study found that income inequality was sharply higher in vibrant cities like New York than in less-dynamic ones like Columbus, Ohio.

 

Canada

THE GLOBE AND MAIL

* Prime Minister Stephen Harper was again rebuffed in his bid to press U.S. President Barack Obama to approve the controversial Keystone XL pipeline when he raised the issue during a North American leaders' summit in Toluca, Mexico. The proposed TransCanada Corp pipeline, which would carry Alberta crude to the Gulf Coast, has become a source of tension for the two leaders.

* A Nebraska court decision Wednesday has thrown another hurdle in the path of TransCanada as it pushes for U.S. approval of the Keystone XL pipeline.

* Quebecor Inc has made a C$233 million ($211 million) play on Canada's wireless industry - buying valuable wireless spectrum in the country's four most populous provinces - though it is saying little about how it intends to use it.

Reports in the business section:

* Lululemon Athletica Inc says its nearly year-long struggle with bad publicity linked to slowing growth and a messy product recall did not reflect any corporate intent to defraud shareholders, and that an expanded lawsuit suggesting otherwise should be thrown out of court.

NATIONAL POST

* An Alberta human rights adjudicator, facing criticism for ruling in favor of a Czech immigrant who claimed discrimination after failing his Canadian engineering qualification exams, is now under scrutiny for his social media comments on East African politics.

* The Progressive Conservatives want to force Ontario's public sector unions to compete for contracts to provide government services in order to save taxpayers money.

FINANCIAL POST

* More choice for consumers in three of Canada's largest provinces could finally be on the way as Quebecor Inc appears poised to mount a big expansion of its wireless business after winning the rights to cellular airwaves outside its home province.

* Shares of BlackBerry Ltd rose as much as 6 percent in extended trading on news that Facebook Inc had acquired one of BBM's biggest rivals for such a princely sum.

 

China

CHINA SECURITIES JOURNAL

- Gree Electric Appliances Inc of Zhuhai said its parent company, which is majority owned by the Zhuhai State-owned Assets Supervision and Administration Commission, would sell a stake of up to 49 percent in Gree Electric's real estate unit, Gree Real Estate, to strategic investors via auction, in a sign of local level action to privatise some state-owned assets.

CHINA BUSINESS NEWS

- The State Administration for Industry and Commerce said it would cancel annual examinations of registered enterprises starting March 1. The agency also told branch offices to prepare to publicly disclose information on registered companies for the first time.

- Bank of Beijing Co Ltd said it would cooperate with Xiaomi.com in mobile payment and credit, but media reports before the official company disclosure raised questions about insider trading.

PEOPLE'S DAILY

- Efforts need to be taken to achieve a mature institutional system as well as to improve governing capability, an editorial said.

 

Britain

The Telegraph

LLOYDS TO DOMICILE TSB IN ENGLAND AS SCOTTISH FEARS MOUNT

Lloyds Banking Group has opted to domicile TSB in England rather than Scotland ahead of the new bank's 1.5 billion pound stock market float.

WAGES RISE BUT STILL BELOW INFLATION

Wages are still failing to keep up with the rising cost of living despite climbing at a faster rate in the final quarter of last year. Average weekly pay including bonuses edged up 1.1 percent to 478 pounds in the three months to the end of December, according to figures from the Office for National Statistics.

The Guardian

EE PLANS TO RETURN 1,000 JOBS TO BRITAIN AND TRIPLE SIZE OF APPRENTICE SCHEME

Communications group EE is to create 1,000 jobs over the next two years and triple the size of its apprenticeship scheme. The company said it was bringing customer service jobs to Britain from overseas centres.

BAE AGREES PRICE ON TYPHOON JET DEAL WITH SAUDI ARABIA GOVERNMENT

The British defence firm BAE Systems has finally agreed to a deal on the price of 72 Eurofighter Typhoon jets it is selling to Saudi Arabia following years of fraught negotiations.

The Times

PRIVATE SECTOR WAGES START TO OVERTAKE INFLATION

Private sector pay rises overtook inflation at the end of last year for the first time since 2008. The proportion of companies planning to freeze pay this year was also forecast to "be the lowest since the start of the financial crisis".

SPORTS DIRECT STAFF CLOSE TO 77,000 POUNDS BONUS

Staff at Sports Direct are on track to share another multimillion-pound payout after the retailer said it was "very confident" of hitting profit targets in the penultimate year of its bonus scheme.

Sky News

BRITISH GAS PLOTS FIGHTBACK AFTER EXODUS

The UK's biggest domestic energy supplier is drawing up plans for a price-led assault on its rivals in a bid to win back customers amid the ongoing political row over fuel costs.

HOUSE OF FRASER CHAIR TO QUIT AS FLOAT LOOMS

The chairman of House of Fraser, the department store chain that is seeking to join London's flotation frenzy, plans to step down if the company returns to the public markets

 

Fly On The Wall 7:00 AM Market Snapshot

ECONOMIC REPORTS

Domestic economic reports scheduled include:

 

Jobless claims for the week of Feb. 15 at 8:30--consensus 335K

 

Consumer Price Index for January at 8:30--consensus 0.1%

 

Leading ndicators for January at 10:00--consensus 0.2%

ANALYST RESEARCH

Upgrades

Agnico-Eagle (AEM) upgraded to Buy from Neutral at UBS

 

American Equity (AEL) upgraded to Outperform from Market Perform at FBR Capital

 

Barrick Gold (ABX) upgraded to Outperform from Sector Perform at RBC Capital

 

CAE (CAE) upgraded to Buy from Underperform at BofA/Merrill

 

CGI Group (GIB) upgraded to Buy from Hold at Jefferies

 

Carlyle Group (CG) upgraded to Buy from Neutral at Citigroup

 

DealerTrack (TRAK) upgraded to Outperform from Market Perform at Wells Fargo

 

DineEquity (DIN) upgraded to Buy from Neutral at Janney Capital

 

HCI Group (HCI) upgraded to Outperform from Market Perform at JMP Securities

 

Healthstream (HSTM) upgraded to Overweight from Equal Weight at First Analysis

 

Infoblox (BLOX) upgraded to Buy from Neutral at Goldman

 

Nabors Industries (NBR) upgraded to Overweight from Equal Weight at Morgan Stanley

 

Thermo Fisher (TMO) upgraded to Buy from Neutral at Goldman

Downgrades

America Movil (AMX) downgraded to Underweight from Equal Weight at Barclays

 

AngloGold (AU) downgraded to Hold from Buy at Deutsche Bank

 

Apple (AAPL) downgraded to Equal Weight from Overweight at Barclays

 

Brandywine Realty (BDN) downgraded to Hold from Buy at Cantor

 

Employers Holdings (EIG) downgraded to Underperform at JMP Securities

 

Equinix (EQIX) downgraded to Neutral from Overweight at Piper Jaffray

 

Equity One (EQY) downgraded to Neutral from Buy at ISI Group

 

Essent Group (ESNT) downgraded to Market Perform from Outperform at JMP Securities

 

Facebook (FB) downgraded to Equal Weight from Overweight at Evercore

 

Facebook (FB) downgraded to Hold from Buy at Pivotal Research

 

Garmin (GRMN) downgraded to Market Perform from Outperform at Wells Fargo

 

Hecla Mining (HL) downgraded to Neutral from Buy at Roth Capital

 

magicJack (CALL) downgraded to Perform from Outperform at Oppenheimer

 

Onconova (ONTX) downgraded to Neutral from Buy at Janney Capital

 

Onconova (ONTX) downgraded to Neutral from Overweight at Piper Jaffray

 

Polypore (PPO) downgraded to Market Perform from Outperform at Wells Fargo

 

Range Resources (RRC) downgraded to Market Perform from Outperform at Bernstein

 

SM Energy (SM) downgraded to Neutral from Buy at UBS

 

Terex (TEX) downgraded to Hold from Buy at Stifel

 

Tesla (TSLA) downgraded to Hold from Buy at Deutsche Bank

 

The Fresh Market (TFM) downgraded to Hold from Buy at Deutsche Bank

 

Town Sports (CLUB) downgraded to Neutral from Overweight at Piper Jaffray

Initiations

AGCO (AGCO) initiated with a Hold at Deutsche Bank

 

Abiomed (ABMD) initiated with a Neutral at BTIG

 

Allison Transmission (ALSN) initiated with a Hold at Deutsche Bank

 

Atlas Resource Partners (ARP) initiated with an Outperform at RBC Capital

 

Booz Allen (BAH) initiated with an Overweight at JPMorgan

 

Caterpillar (CAT) initiated with a Buy at Deutsche Bank

 

Cummins (CMI) initiated with a Buy at Deutsche Bank

 

Deere (DE) initiated with a Buy at Deutsche Bank

 

Edwards Lifesciences (EW) initiated with a Neutral at BTIG

 

Genpact (G) initiated with an Overweight at Piper Jaffray

 

HeartWare (HTWR) initiated with a Neutral at BTIG

 

Joy Global (JOY) initiated with a Hold at Deutsche Bank

 

Manitowoc (MTW) initiated with a Hold at Deutsche Bank

 

Sunshine Heart (SSH) initiated with a Neutral at BTIG

 

Terex (TEX) initiated with a Buy at Deutsche Bank

 

Thoratec (THOR) initiated with a Buy at BTIG

 

Yelp (YELP) initiated with a Neutral at BofA/Merrill

COMPANY NEWS

Facebook (FB) to acquire WhatsApp for $16B, shares fell 3%. Twitter (TWTR) advanced 0.5% following the announcement, while BlackBerry (BBRY) gained about 6%

 

Facebook believes WhatsApp on 'clear path' to having 1B users

 

Gap (GPS) raised 2014 minimum wage to $9.00/hour for U.S. employees

 

Safeway (SWY) said in discussions concerning possible sale

 

Trian Partners: PepsiCo (PEP) should separate into two companies

 

Tesla (TSLA) sees delivering over 35,000 Model S vehicles in 2014

 

Tesla CEO Elon Musk said on the Q4 earnings conference call that the Model S has 'far lower propensity for fire than a gasoline car'

 

eBay (EBAY) acquired PhiSix, terms not disclosed

 

Allstate (ALL) announced $2.5B share repurchase plan

EARNINGS

Companies that beat consensus earnings expectations last night and today include:

 

Quanta Services (PWR), Axiall (AXLL), Equinix (EQIX), Vectren (VVC), Blackhawk (HAWK), Portfolio Recovery (PRAA), Curtiss-Wright (CW), Questar (STR), Macquarie Infrastructure (MIC), Brixmor (BRX), Synopsys (SNPS), Trinity Industries (TRN), Jack in the Box (JACK), Avis Budget (CAR), Rubicon (RBCN), Steiner Leisure (STNR), Tesla (TSLA)

Companies that missed consensus earnings expectations include:

 

Coeur Mining (CDE), Ensco (ESV), Energy Transfer Equity (ETE), Energy Transfer Partners (ETP), Williams Partners (WPZ), Sunoco Logistics (SXL), HealthSouth (HLS), Goodrich Petroleum (GDP), Oil States (OIS), Invesco Mortgage (IVR), Cinemark (CNK)

Companies that matched consensus earnings expectations include:

 

Williams (WMB), Marriott (MAR), BJ's Restaurants (BJRI), Acadia Healthcare (ACHC), Denny's (DENN), DealerTrack (TRAK)

NEWSPAPERS/WEBSITES

Bayer (BAYRY), Novartis (NVS) explore bids for Merck's (MRK) consumer unit, Reuters reports

 

Nokia (NOK) reportedly considering buying Juniper (JNPR), combining it with NSN, Reuters reports

 

Broadcasters (CBS, NWSA, DIS, CMCSA) get first victory over Aereo in Utah federal court, WSJ reports

 

Wal-Mart (WMT) weighs support for minimum wage increase, Bloomberg reports

 

Slim (AMX) to exercise NY Times Co. (NYT) warrants this year, Bloomberg reports

 

Standard Chartered (SCBFF) puts Hong Kong consumer finance unit up for sale, FT reports

 

Intel (INTC) CEO says relationship with Apple (AAPL) getting 'closer,' Apple Insider reports

 

BAE Systems (BAESY): U.S. unit close to 'bottoming out' this year, Reuters reports

 

Comcast (CMCSA) confident of Time Warner Cable (TWC) acquisition approval, FT reports

SYNDICATE

Berry Plastics (BERY) files to sell 9M shares of common stock for holders

 

Cytokinetics (CYTK) announces proposed offering of common stock

 

Diamondback Energy (FANG) files to sell 3M shares of common stock

 

Kayne Anderson (KYN) files to sell 6.75M common shares

 

NGL Energy Partners (NGL) files to sell 8.11M common units for holders