- Christmas rally enters sixth day in Europe (Reuters)
- Downing North Korea's Internet not much of a scalp (Reuters)
- North Korean Internet Access Restored After Hours-Long Outage (BBG)
- At U.N. council, U.S. calls life in North Korea 'living nightmare' (Reuters)
- Ukraine Cuts Gold Reserve to Nine-Year Low as Russia Buys (BBG)
- De Blasio Seeks to Heal Rifts With Police After Officers Slain (BBG)
- Oil steady around $60 on hopes of strong U.S. data (Reuters) - so it fell below $60 because...
- Australian Dollar Hits Four and a Half Year Low on Chine Growth Worries (Reuters)
- Erbey’s Exit Ends Heady Era at Ocwen (WSJ)
- Alibaba’s Tmall Global Site Stumbles (WSJ)
- Oil Price Drop, Nuclear Deal Delay Unsettle Iran’s Economy (WSJ)
- Biggest Arctic Gas Project Seeking Route Around U.S. Sanctions (BBG)
- El Nino Seen Looming by Australia as Pacific Ocean Heats Up (BBG)
Overnight Media Digest
WSJ
* New York Mayor Bill de Blasio and police unions agreed to end a war of words until two officers fatally shot this weekend are laid to rest, as law-enforcement agencies assessed the safety of members. (http://on.wsj.com/1xcDg3c)
* Plummeting oil prices and the failure so far to conclude a nuclear agreement are dealing a double blow to Iran's economy just as it was starting to recover. (http://on.wsj.com/1zPPbC1)
* Like Barbie's Dreamhouse and Hot Wheels track sets, meetings at Mattel Inc now come with instructions. After a tough year, Mattel is overhauling conference-room culture so it can get back to thinking about toys. (http://on.wsj.com/1zYxgdy)
* U.S. regulators on Monday approved Bristol-Myers Squibb Co's Opdivo for advanced skin cancer, the latest drug to reach the market in the emerging field of cancer immunotherapy. (http://on.wsj.com/13yXF4N)
* Charlie Ergen, chairman of satellite-TV provider Dish Network, is a renowned card shark. Lately, he's been playing some high-stakes poker with the media industry's giants. (http://on.wsj.com/1t4EKeq)
* Ocwen Financial lost its driving force as executive chairman William Erbey resigned as part of the embattled mortgage-servicing company's $150 million settlement with New York's financial regulator. (http://on.wsj.com/1zYCMNj)
* Alibaba's Tmall Global shopping platform is failing to live up to its early billing as a "fast track into China" for foreign brands new to the mainland, say brands and online-shopping consultants. (http://on.wsj.com/1zrE04C)
* F-Squared Investments Inc, which builds investment portfolios out of exchange-traded funds, admitted it misled clients about its track record and agreed to pay $35 million in a settlement with regulators. (http://on.wsj.com/13sBUDs)
* Comcast Corp's proposed $45 billion merger with Time Warner Cable Inc has run into another delay, this time due to the failure of Time Warner Cable to produce necessary documents to the Federal Communications Commission in a timely manner. (http://on.wsj.com/1HtdyXy)
* North Korea lost what little access it had to the Internet on Monday as outside connections to the small communist country went dark. The digital blackout came as tensions remained high over Pyongyang's alleged role in a cyber attack on Sony Pictures that destroyed company computers and pushed the studio to cancel the release of a satirical movie about an assassination plot against North Korea's leader Kim Jong Un. (http://on.wsj.com/1x5sZ5F)
FT
French group Alstom SA has pleaded guilty to paying $75 million in bribes to government officials in various parts of the world and has agreed to pay $772.3 million in fines to the U.S. Department of Justice.
Bill Erbey, Chairman of Ocwen Financial has agreed to resign and pay $150 million as part of a settlement to end a multi-year legal fight with New York's Department of Financial Services.
The Financial Reporting Council, UK's accountancy regulator, said it has initiated two separate probes into PriceWaterhouseCoopers related to its clients Barclays and Tesco. The watchdog said it will investigate preparation, approval and PwC's audit of Tesco's financial statements for the retailer's past three financial years.
Scottish football club Rangers' financial troubles will not go away anytime soon as the board failed to persuade shareholders to back a rights issue, which leaves the beleaguered football club in dire need of funds going into the next year.
NYT
* A decision by Facebook Inc to block a page used to rally Russian opponents of President Vladimir Putin has engulfed the world's largest social networking site in political controversy and raised accusations that it censors content on behalf of the Russian authorities. (http://nyti.ms/1wColgP)
* The French industrial giant Alstom has agreed to plead guilty and pay a $772 million penalty to the United States in a bribery investigation by the Justice Department. (http://nyti.ms/1wgeyYC)
* Bowing to pressure from its neighbors, Qatar is suspending its broadcast of a satellite news channel sharply critical of Egypt's military-led government. (http://nyti.ms/1Htf3oO)
* The computer breach at JPMorgan Chase & Co this summer - the largest intrusion of an American bank to date - might have been thwarted if the bank had installed a simple security fix to an overlooked server in its vast network, said people who have been briefed on internal and outside investigations into the attack. (http://nyti.ms/1sS6w8e)
* Goldman Sachs Group Inc, which originally purchased Metro International Trade Services in 2010 for $550 million, has sold the aluminum warehouse subsidiary that drew criticism to a European private equity firm, Reuben Brothers. (http://nyti.ms/13WQDHU)
* F-Squared Investments, a fast-growing investment company, reached an agreement to pay $35 million in penalties to the Securities and Exchange Commission over allegations that it defrauded investors by providing inaccurate performance data. (http://nyti.ms/1xcIg85)
Canada
THE GLOBE AND MAIL
** Ontario Teachers' Pension Plan and the Public Sector Pension Investment Board were partnering Banco Santander SA on renewable energy and water infrastructure assets. The portfolio, valued by the deal at more than $2 billion and currently owned by the Spanish bank, would be transferred to a new company held equally by all three. (http://bit.ly/1B13UJB)
** Dalhousie University's dentistry faculty was closing its public clinic until Jan. 12 as part of its response to accusations that male students posted misogynistic messages online about their female peers. The university in Halifax said it was contacting patients affected by the decision. (http://bit.ly/1zsuMoV)
** Manitoba Transportation Minister Steve Ashton resigned and said he would launch a campaign to be the province's next premier. Ashton was the embattled New Democratic Party government's sixth minister to resign. (http://bit.ly/16M6Ron)
NATIONAL POST
** Canadian Natural Resources Ltd, whose steam-assisted oilsands operations near Cold Lake are currently the subject of a regulatory investigation, has stopped pumping steam into a well at its Wolf Lake facility when oil products started leaking into an aquifer. Neither the company nor the Alberta Energy Regulator could say Monday how much benzene, a combustible compound found in gasoline, had leaked into the underground aquifer (http://bit.ly/1t5PysB)
** Preston Manning, the former leader of the Reform Party, said he made a mistake encouraging members of Alberta's Wildrose to unite with the governing Progressive Conservatives without first consulting the grassroots of the party. (http://bit.ly/1zQnCs9)
** Canadian oil producers were proving less resilient than their U.S. counterparts to plunging prices. Rigs searching for oil in Canada fell by 25 to 190 last week, the lowest on a seasonal basis since 2009, Baker Hughes Inc said on its website Friday. The U.S. total dropped by 10 to 1,536, the highest for that time of the year in at least a decade. (http://bit.ly/1wgMJPW)
China
CHINA SECURITIES JOURNAL
- China's State-owned Assets Supervision and Administration Commission will undertake reform and improve its supervision of national assets, said its Director Zhang Yi.
SHANGHAI SECURITIES NEWS
- China's Founder Group said in a statement that none of its four listed units have been hit by funding squeeze nor investigations for any wrongdoing, dispelling market rumours that dragged three of its listed units, Founder Technology Group Corp, China Hi-Tech Group Co and PKU HealthCare Corp Ltd, lower by about 10 percent on Monday.
SECURITIES TIMES
- China's National Development Reform Commission has approved two proposals to build intercity railway networks in Zhejiang province and Hefei City, which would cost over 200 billion yuan ($32.15 billion).
CHINA DAILY
- Economic growth in China will be around 7.3 percent in 2015 and rebound to 7.5 percent in 2016 on the back of a looser monetary policy, said a report published by China International Capital Corp.
SHANGHAI DAILY
- Beijing-based supermarket chain Wumei Holdings will pay 1.4 billion yuan ($225 million) for a majority stake in home decorating chain B&Q China, after parent Kingfisher failed to spur growth in the home decoration market. The all-cash takeover will be subject to approval from China's Ministry of Commerce, and is set to complete in the first half of 2015.
Britain
The Times
REGULATOR LAUNCHES INQUIRY INTO TESCO ACCOUNTING SCANDAL
The independent accounting regulator has opened a formal investigation into Tesco PLC's 263 million stg accounting scandal. The Financial Reporting Council said it would scrutinise members and a member firm in relation to the preparation, approval and audit of Tesco's accounts for the past three financial years. (http://thetim.es/1rdMauK)
FLOOD WARNINGS AS RAIN SWEEPS IN FOR CHRISTMAS
Flood warnings are in place for the north and west of the country as rain begins to sweep its way across Britain for Christmas. The Met Office has released dozens of alerts for England and Scotland - predominantly affecting the north-east and north-west. (http://thetim.es/1zd99na)
The Guardian
LABOUR WARNS OF RISK TO POLICING AS OFFICERS STAND ON THE AUSTERITY FRONTLINE
Thousands of police officers around the country face losing their jobs by the end of the decade as part of George Osborne's plans to shrink the size of the state, according to a Labour analysis of figures compiled by the House of Commons library. (http://bit.ly/1AZw2g6)
UK JOBS MARKET SET FOR UPBEAT 2015 BUT SKILLS SHORTAGE REMAINS
As the economic recovery continues, 50 percent of British businesses are planning to take on extra workers in 2015, the CBI said, but skills shortage could stop jobs being filled. All regions of the UK stand to benefit according to the business lobby group, while Scotland has the biggest plans for the job creation. (http://bit.ly/1xaMWeC)
The Telegraph
SIX DEAD AS BIN LORRY HITS CHRISTMAS SHOPPERS IN GLASGOW
A baby is feared to be among the victims as six people died and eight were injured when a bin lorry careered out of control and into crowds of Christmas shoppers. The truck mounted the pavement at speed as it traveled 300 yards and ploughed into pedestrians and knocked down lampposts in Glasgow city centre, witnesses said. (http://bit.ly/13wyAaQ)
RUSSIA STARTS BAILING OUT BANKS AS ECONOMY FACES 'FULL-BLOWN CRISIS'
Russia is facing a "full-blown economic crisis", a former finance minister has warned, as the country is forced to take emergency financial measures. Analysts have warned that the Russian economy will not improve in the long-term unless either the oil price or relations over Ukraine improve. (http://bit.ly/1ASOYgU)
Sky News
SINGER JOE COCKER DIES AT 70
Blues and rock legend Joe Cocker, best known for his gritty voice and great vocals, has died at the age of 70. The English-born singer-songwriter died on Sunday in Colorado, where he has lived for the past two decades. He had lung cancer. (http://bit.ly/13WPQqo)
EX-B&Q CHIEF IN FRAME FOR TOP WHITEHALL ROLE
The former boss of B&Q's parent company is being lined up to take a key role in Whitehall as ministers prepare for a swingeing new round of public spending cuts. Sir Ian Cheshire, who stepped down as chief executive of Kingfisher PLC earlier this month, is among a small number of candidates to succeed the former BP PLC boss Lord Browne as the Government's lead non-executive director. (http://bit.ly/1CwMbLl)
The Independent
ED BALLS: LABOUR GOVERNMENT WOULD FAST-TRACK THE MANSION TAX
Imposing a mansion tax on homes worth more than 2 million stg would be one of the first acts of an incoming Labour government next May, Ed Balls has revealed in an interview. (http://ind.pn/1wXPbji)
BANK OF ENGLAND SAYS CONFIDENCE IN BANKING SYSTEM IS STILL SHAKY AMID RECENT SCANDALS AND CYBER THREATS
UK banks must go far beyond bolstering financial strength to restore confidence after recent scandals and should guard against complacency about possible cyber-attacks, the Bank of England warned today. (http://ind.pn/1APwrlw)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Durable goods orders for November at 8:30--consensus up 3.0%
GDP for Q3 at 8:30--consensus up 4.3%
FHFA house price index for October at 9:00--consensus up 0.3%
University of Michigan consumer sentiment index for December at 9:55--consensus 93.5
Richmond Fed manufacturing index for December at 10:00--consensus 7
New home sales for November at 10:00--consensus up 0.4% to 460K rate
ANALYST RESEARCH
Upgrades
CryoLife (CRY) upgraded to Overweight from Neutral at Piper Jaffray
DCT Industrial (DCT) upgraded to Buy from Hold at Stifel
Douglas Emmett (DEI) upgraded to Hold from Sell at Stifel
Kimberly Clark (KMB) upgraded to Outperform from Market Perform at BMO Capital
Downgrades
Achillion (ACHN) downgraded to Neutral from Outperform at RW Baird
BreitBurn Energy (BBEP) downgraded to Hold from Buy at Stifel
Diamond Offshore (DO) downgraded to Reduce from Neutral at Global Hunter
Hercules Offshore (HERO) downgraded to Reduce from Neutral at Global Hunter
LRR Energy (LRE) downgraded to Hold from Buy at Stifel
Nabors Industries (NBR) downgraded to Reduce from Neutral at Global Hunter
New Source Energy (NSLP) downgraded to Hold from Buy at Stifel
Initiations
Axalta Coating (AXTA) initiated with an Equal Weight at Barclays
Calgon Carbon (CCC) initiated with a Buy at Topeka
Cedar Fair (FUN) initiated with an Outperform at Credit Suisse
Chuy's (CHUY) initiated with a Hold at Wunderlich
FleetCor (FLT) resumed with an Overweight at Barclays
Intra-Cellular (ITCI) initiated with an Outperform at JMP Securities
Johnson Controls (JCI) initiated with a Buy at Ascendiant
PTC Therapeutics (PTCT) coverage assumed with an Outperform at Wedbush
Quest Resource Holding (QRHC) initiated with a Buy at Maxim
Red Hat (RHT) initiated with a Buy at Cantor
Sonus (SONS) initiated with an Outperform at Wells Fargo
COMPANY NEWS
Chesapeake (CHK) announced $1B stock repurchase authorization
Vanda (VNDA), Novartis (NVS) agreed to settle arbitration relating to Fanapt. As a part of the settlement agreement, Novartis will transfer all U.S. and Canadian rights in the Fanapt franchise to Vanda, make a $25M equity investment in Vanda at a price per share equal to $13.82 and grant to Vanda an exclusive worldwide license to AQW051
Statoil (STO) agreed to reduce its working interest in the non-operated U.S. southern Marcellus onshore asset from 29% to 23%, following a $394M transaction with Southwestern Energy (SWN)
Hess Corp. (HES) announced LOI with North West Shelf. Hess intends to develop its natural gas discoveries in its deepwater permits offshore northwestern Australia and, subject to execution of binding agreements, toll the production through existing NWS processing and liquefaction facilities in Karratha, Australia
Oragenics (OGEN) to explore strategic alternatives for OTC probiotic products business
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Steelcase (SCS)
Steelcase (SCS) sees Q4 EPS 19c-23c, consensus 20c
Quanta Services (PWR) sees impact of 14c per share in Q4
China Finance Online (JRJC) reports Q3 EPS (11c) vs. (7c) last year
Points International (PCOM) now sees FY14 revenue, adjusted EBITDA at low end of view; sees growing revenue, adjusted EBITDA in FY15
NEWSPAPERS/WEBSITES
Simple step would have prevented JPMorgan (JPM) hacking, NY Times reports
Starbucks (SBUX) to no longer use Square for mobile payments, WSJ reports
Facebook (FB) said to block page supporting Putin critic, NY Times reports
Amazon (AMZN) not expected to release next Fire phone until 2016, VentureBeat reports
Hudson's Bay CEO interested in buying Dillard's (DDS), The Deal reports
TripAdvisor (TRIP) fined for misleading reviews in Italy, AP reports
American Apparel (APP) not actively looking for bids, Bloomberg says
SYNDICATE
Alder Biopharmaceuticals (ALDR) files to sell $115M of common stock
Arc Logistics (ARCX) files to sell $500M of limited partner interests
Esperion (ESPR) files $200M mixed securities shelf
Hawaiian Electric (HE) files automatic mixed securities shelf
Nicholas Financial (NICK) intends to commence modified Dutch auction tender offer
Pennsylvania REIT (PEI) files $1B automatic mixed securities shelf