- Fed Likely to Remove ‘Patient’ Barrier for Rate Increase as Soon as June (Hilsenrath) - which year?
- Clinton says used personal email account for convenience (Reuters)
- Euro sinks to 12-year lows as yield gap grows (Reuters)
- Get Ready for Oil Deals: Shale Is Going on Sale (BBG)
- EIA raises 2015 US oil production forecast, cuts 2016 outlook (Reuters)
- How Falling Oil Prices Are Hindering Iraq’s Ability to Fight Islamic State (WSJ)
- China economic data weaker than expected, fuels policy easing bets (Reuters)
- ECB ‘Chasing Own Tail’ as Bond Rates Turn Negative, SocGen Says (BBG)
- Swiss makers quietly gear up with smartwatches of their own (Reuters)
- Accused Russian Hacker on Tropical Holiday Nabbed by U.S. Agents (BBG)
- U.K. Factory Output Unexpectedly Falls on Electronics (BBG)
- U.S. banks' buybacks, dividends may be no reason for shareholder celebrations (Reuters)
- Ex-Soviet Republics Feeling Putin’s Ruble Pain Now (BBG)
- Bank of Thailand Unexpectedly Cuts Key Interest Rate to 1.75% (BBG)
- Clinton Flies Without Campaign Net (WSJ)
- UBS poaches Bank of Montreal oil banking team (Reuters)
Overnight Media Digest
WSJ
* The furor over Hillary Clinton's private email account could accelerate Democratic calls for her to enter the presidential race sooner, a move that would give the former sectary of state a better platform to help shift attention to jobs and economic issues, the core of her 2016 message. (http://on.wsj.com/1C5FDat)
* The Central Intelligence Agency played a crucial role in helping the Justice Department develop technology that scans data from thousands of U.S. cellphones at a time, part of a secret high-tech alliance between the spy agency and domestic law enforcement. (http://on.wsj.com/1b14Oio)
* The Federal Reserve is strongly considering removing a barrier to raising short-term interest rates as early as June by dropping its promise to be "patient" before acting. Discussions about interest-rate guidance and an uncertain inflation outlook are likely to take center stage at the Fed's next meeting March 17-18. (http://on.wsj.com/1xc1yFm)
* Dozens of major labor unions plan to freeze campaign contributions to lawmakers as part of a move to fight a Pacific trade pact they say could result in U.S. job losses. (http://on.wsj.com/1D2RkOX)
* Tesla Motors Inc can deliver its top-of-the-line Model S in just 20 days, far shorter than the waiting time on the luxury auto maker's less expensive designs, suggesting it has shifted production to the $105,000 and up sedan to boost revenue. (http://on.wsj.com/1C3HtqV)
* Duke Energy agreed to pay shareholders about $146 million to settle allegations that it failed to disclose details of its 2012 merger with Progress Energy, including a swift boardroom coup. (http://on.wsj.com/1D3pTVl)
* BC Partners Ltd plans to install a new chief executive and chairman at PetSmart Inc when it completes its roughly $8.25 billion acquisition Wednesday. The private-equity firm and its partners have enlisted veteran retail executive Michael Massey to run the Phoenix-based pet-supply retailer, while BC Partners Managing Partner Raymond Svider will become chairman. (http://on.wsj.com/1MrR8KK)
* On Tuesday, 52-year-old Tidjane Thiam was unveiled as the new chief executive of Swiss bank Credit Suisse Group AG . He has steered UK insurer Prudential Plc to strong growth over the past 5 and a half years and has an impressive track record that underscores both his ambition and capabilities. (http://on.wsj.com/1b18vEN)
* Former JPMorgan Chase & Co executive Blythe Masters has become one of the most high-profile Wall Street bankers to join the burgeoning digital-currency sector, taking on the leadership of a new trading platform for bitcoin and other digital assets. (http://on.wsj.com/1C5KqIW)
FT
Hutchison and Vimpelcom who have been in talks for almost an year to merge their Italian mobile operations are now close to a deal being agreed, according to two people close to the discussions.
Prime Minister David Cameron has asked ministers whether Britain's defence budget can be boosted without actually spending more money to get to 2 percent of GDP.
Shares of Credit Suisse rose 8 percent yesterday after the announcement of Tidjane Thiam's appointment as the new chief executive.
Britain's Tesco, which has been struggling after a profit overstatement last year, registered its best sales performance in 18 months, according to Kantar Worldpanel, a consumer research group.
NYT
* Target Corp said that it was laying off 1,700 employees as part of a cost-cutting drive at its Minneapolis headquarters, the first in a wave of job cuts expected at the retailer over the next two years. (http://nyti.ms/1D3iyVN)
* North Carolina officials say they have hit Duke Energy with the largest environmental fine in state history. The $25.1 million penalty, announced Tuesday by the State Department of Environment and Natural Resources, addresses the contamination of groundwater by coal ash from the company's Sutton Plant. (http://nyti.ms/1AgMTcj)
* New York State's top financial regulator accused MoneyMutual of marketing illegal, high-cost loans to New Yorkers desperate for cash. As part of the settlement with the financial regulator, Benjamin Lawsky, MoneyMutual agreed to pay a $2.1 million penalty. (http://nyti.ms/1KUfPSH)
* New Jersey Governor Chris Christie on Tuesday defended his administration's decision to settle a multibillion-dollar pollution suit against Exxon Mobil Corp for a fraction of what the state had originally sought, saying the $225 million deal was "on top of" the company's obligation to clean up the damage it caused. (http://nyti.ms/1xc3i1F)
Canada
THE GLOBE AND MAIL
** Royal Bank of Canada Chief Executive David McKay, said he believed demand for housing is roughly in line with supply, particularly after housing starts fell 16 pct in February, rebutting concerns that sharply rising home prices have fed a speculative bubble that is in danger of bursting. (http://bit.ly/18aYzqA)
** Two trains that derailed and caught fire in Northern Ontario were carrying crude from Alberta's oil sands, suggesting concerns about the volatility of oil-by-rail shipments cannot be limited to the Bakken crude that was involved in the Lac-Mégantic tragedy and a spate of other major accidents. (http://bit.ly/1Eb1pqP)
** Alberta has vaulted to the forefront of Canada's debates on sexuality and gender expression, Premier Jim Prentice said on Tuesday evening after MLAs quickly passed legislation that ended a debate on gay support clubs that roiled the province. Prentice's Education Minister announced that the Tory government was reversing its position on gay-straight alliances and would make the clubs mandatory in every school where a student requested one. (http://bit.ly/1wX563O)
NATIONAL POST
** The Collective Opposed to Police Brutality, an anarchist group renowned for annual anti-police brutality marches that habitually devolve into riots, is organizing a demonstration to coincide with Montreal's 192nd Street Patrick's Day Parade. (http://bit.ly/1B3LkyF)
** Public Works and Government Services Minister Diane Finley breached conflict-of-interest rules by giving preferential treatment and federal funding to a project in Markham, Ontario, that also featured "a number of interventions" by the Prime Minister's Office, said Ethics Commissioner Mary Dawson. (http://bit.ly/1Eb3wem)
** The lack of rules for unions and interest groups who advertise during elections is creating an "uneven playing field that can potentially influence electoral outcomes," Ontario's chief electoral officer said on Tuesday. (http://bit.ly/1E3xhLz)
Hong KOng
SOUTH CHINA MORNING POST
-- A much-anticipated visit by Basic Law Committee Chairman Li Fei to Hong Kong next month is now off the table after he learned that 27 pan-democrats had signed a joint statement vowing to vote down the government's proposals for electoral reform. (bit.ly/189KFoB)
-- The fate of former Hong Kong chief executive Donald Tsang Yam-kuen will soon be known, as the justice chief said the bribery investigation had entered "the final stage". (bit.ly/19amRC4)
-- Beijing's top man on Macau affairs has issued a "you are being watched" warning to mainland officials who still fancy taking a chance at the city's casino tables. Li Gang, the director of the city's liaison office there, said measures were in place to ensure that officials who head to Macau "would be discovered". (bit.ly/1GD0e6X)
THE STANDARD
-- All visitors to Hong Kong should be treated as guests, a magistrate said as he barred three students from setting foot in Hong Kong's Tuen Mun, following their arrests during the violent anti-parallel trading protests. (bit.ly/1MpZJfc)
-- Mainlanders are planning to recruit a 14-strong "quarrel team" to deal with Hong Kong hecklers at future demonstrations. Activists said on Weibo that recruits will be paid 3,000 yuan ($479) each and trained on how to scold parallel trading protesters. (bit.ly/1F91wFi)
-- Top local developer Cheung Kong Holdings ended its 42-year listing on Tuesday, with market capitalization having grown more than 2,800 times from its debut. It will be listed under a new entity, Cheung Kong Hutchison, with the same stock code on March 18. (bit.ly/1GD0NO8)
HONG KONG ECONOMIC JOURNAL
-- Mobile online games developer ICC Inc plans to launch about 30 new games this year, including five self-developed ones involving an investment of $30 million, according to Chief Operating Officer Xu Yuan.
HONG KONG ECONOMIC TIMES
-- Some 17 percent of the 800 Hong Kong employers polled by a survey plan to hire more staff in the coming three months, in particular for industries relating to information technology and auditing. Two percent of the respondents plan to trim their workforce, according to a survey conducted by human resources consultancy ManpowerGroup.
Britain
The Times
PRUDENTIAL CONFIRMS DEPARTURE OF TIDJANE THIAM
Tidjane Thiam is stepping down as the chief executive officer of Prudential Plc to take the helm at Credit Suisse Group AG. Thiam, who has run the insurer since 2009, will replace Brady Dougan as chief executive at the Swiss bank. (http://thetim.es/1AfLCT0)
SORIOT EARNS £3.5M IN 2014 AFTER SEEING OFF PFIZER
Repelling a hostile takeover offer from Pfizer Inc proved a lucrative outcome for AstraZeneca Plc's chief executive who was rewarded for his efforts with an above-target pay package. Pascal Soriot earned 3.5 million pounds ($5.28 million) for 2014, an increase on his pay of 3.3 million pounds ($4.97 million) for the previous year.(http://thetim.es/1AfNICg)
The Guardian
EURO SLIDES TO 12-YEAR LOW AGAINST DOLLAR ON FEARS OF RENEWED GREEK DEBT CRISIS
Amid fears of a rekindling of Greece's debt crisis, the pound climbed above 1.40 euros for the first time since the onset of the global financial crisis in 2007. Against the dollar, the single currency was at its lowest level for 12 years.(http://bit.ly/1AfOeAa)
RYANAIR TO BECOME FIRST AIRLINE TO FLY TO SPAIN'S GHOST AIRPORT
Ryanair Holdings Plc is set to become the first airline to operate scheduled flights from the Spanish "ghost airport" of Castellón. The Irish carrier will announce plans on Wednesday to fly from the airport, which cost 150 million euros ($160.61 million) to build but stood empty for almost four years.(http://bit.ly/1AfOJKu)
The Telegraph
MARK CARNEY: BANK OF ENGLAND WOULD BE 'FOOLISH' TO FIGHT CURRENT LOW INFLATION
Bank of England policymakers would be "extremely foolish" if they took the unnecessary step of trying to fight the current period of low inflation by pumping more stimulus into the economy, Bank Governor Mark Carney has said.(http://bit.ly/1E9Fnos)
BREAKING UP THE BANKS COULD STOP PUBLIC GETTING POOR DEAL, SAY MPS
Breaking up Britain's Big Four banks could stop the public getting a "poor deal" by boosting competition in the sector, MPs have said. In a report released on Tuesday night, the Treasury select committee stated that the lack of "genuine choice" in banking for customers and small businesses may be addressed through "structural reform of the sector."(http://bit.ly/1xbfH5K)
Sky News
1 BLN POUND PRINTER FALLS LIKE DOMINO TO JAPAN BID
Domino Printing Sciences Plc, a FTSE-250 printing technology company, will be the latest British corporate name to fall prey to a foreign rival when it unveils a takeover deal worth close to 1 billion pounds ($1.51 billion).(http://bit.ly/1AfUoQX)
OUSTED FCA CHIEF MCMILLAN JOINS PAYDAY LENDER
Zitah McMillan, who stepped down as the Financial Conduct Authority's (FCA) communications and international director in December, has joined DFC Global Corp, whose array of financial services operations include the Money Shop, a prominent UK lender.(http://bit.ly/1B1llrA)
The Independent
BITCOIN IS BEING USED BY AFRICAN MIGRANT WORKERS TO SEND MONEY HOME
Migrant African workers are increasingly turning to bitcoin to send money home. BitPesa, a service that allows bitcoins to be transferred to Kenya and Ghana for a flat fee of 3 percent, said its user base is growing by 60 percent month-on-month.(http://ind.pn/1AfVGvg)
CONSUMERS FACE RIP-OFF SCAMS AFTER PENSION REFORMS, MPS WARN
Senior MPs are warning that consumers will face rip-off scams when the new pension freedoms come into force next month.(http://ind.pn/1AfWrEt)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
DOE petroleum inventory reports for week of March 6 at 10:30
ANALYST RESEARCH
Upgrades
Corcept Therapeutics (CORT) upgraded to Overweight from Neutral at Piper Jaffray
Credit Suisse (CS) upgraded to Overweight from Underweight at JPMorgan
Five Below (FIVE) upgraded to Buy from Neutral at MKM Partners
Inogen (INGN) upgraded to Buy from Hold at Stifel
Landmark Infrastructure (LMRK) upgraded to Strong Buy from Outperform at Raymond James
NewStar Financial (NEWS) upgraded to Buy from Neutral at Janney Capital
Red Robin (RRGB) upgraded to Buy from Neutral at Longbow
Remy Cointreau (REMYF) upgraded to Buy from Neutral at Goldman
Scotts Miracle-Gro (SMG) upgraded to Buy from Neutral at SunTrust
Tiffany (TIF) upgraded to Overweight from Neutral at Atlantic Equities
Downgrades
Bridge Capital Holdings (BBNK) downgraded to Neutral from Buy at DA Davidson
EMC (EMC) downgraded to Market Perform from Outperform at Wells Fargo
Energy Recovery (ERII) downgraded to Hold from Accumulate at Ardour Capital
FMC Technologies (FTI) downgraded to Underperform from Market Perform at FBR Capital
Prosperity Bancshares (PB) downgraded to Market Perform at BMO Capital
Initiations
AtriCure (ATRC) initiated with a Buy at Dougherty
Bloomin' Brands (BLMN) initiated with a Neutral at Credit Suisse
Buffalo Wild Wings (BWLD) initiated with an Underperform at Credit Suisse
Chipotle (CMG) initiated with an Outperform at Credit Suisse
Crane (CR) initiated with a Hold at Stifel
Credit Suisse starts Buffalo Wild Wings (BWLD) at sell on 2015 headwinds
Credit Suisse starts Yum! at sell on China concerns
Darden (DRI) initiated with a Neutral at Credit Suisse
Del Frisco's (DFRG) initiated with a Neutral at Credit Suisse
Dunkin' Brands (DNKN) initiated with an Outperform at Credit Suisse
Great Ajax (AJX) initiated with an Outperform at FBR Capital
Jason Industries (JASN) initiated with a Buy at Stifel
L-3 Communications (LLL) initiated with a Buy at Buckingham
McDonald's (MCD) initiated with a Neutral at Credit Suisse
Noodles & Company (NDLS) initiated with a Neutral at Credit Suisse
Panera Bread (PNRA) initiated with an Outperform at Credit Suisse
Premier (PINC) initiated with an Outperform at RW Baird
Restaurant Brands (QSR) initiated with a Neutral at Credit Suisse
Starbucks (SBUX) initiated with a Neutral at Credit Suisse
Texas Roadhouse (TXRH) initiated with a Neutral at Credit Suisse
Wendy's (WEN) initiated with an Underperform at Credit Suisse
Yum! Brands (YUM) initiated with an Underperform at Credit Suisse
Zoe's Kitchen (ZOES) initiated with a Neutral at Credit Suisse
COMPANY NEWS
GNC (GNC): Outside testing of Herbal Plus products found no improper labeling
McNeil-PPC (JNJ) pleaded guilty in connection with infants', children's OTC drugs
Philip Morris (PM) said Carlos Slim to retire from board of directors
Skyworks (SWKS) to replace PetSmart (PETM) in S&P 500 as of 3/11 close
Ericsson (ERIC) said it will cut 2,200 jobs in Sweden, mainly in R&D and Supply
American Realty Capital Properties (ARCP) named Glenn Rufrano as CEO
EQT Midstream (EQM) acquired West Virginia gathering assets from EQT Corporation (EQT) for $1.05B, of which $997.5M will be paid in cash and $52.5M will be paid in common and general partner units
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Blueknight Energy Partners (BKEP), Supernus (SUPN), Connecture (CNXR), SINA (SINA), THL Credit (TCRD), Analogic (ALOG), Kopin (KOPN), NCI Building Systems (NCS), Sophiris Bio (SPHS), Synergetics (SURG), Verifone (PAY)
Companies that missed consensus earnings expectations include:
Raven (RAVN), Axalta Coating (AXTA), Oncothyreon (ONTY), Era Group (ERA), Emerald Oil (EOX), Theravance Biopharma (TBPH), TherapeuticsMD (TXMD), Zogenix (ZGNX), Global Cash Access (GCA)
Companies that matched consensus earnings expectations include:
Fuel Systems (FSYS), Weibo (WB), FuelCell (FCEL), Horizon Technology (HRZN)
NEWSPAPERS/WEBSITES
TD Ameritrade (AMTD) not interested in buying E-Trade (ETFC), Reuters reports
Chevron (CVX) expects production slowdown at end of decade, Financial Times reports
Prudential plc (PUK) expected to name Mike Wells as CEO, WSJ reports
Google reportedly in talks to acquire InMobi, WSJ reports
Apple (AAPL) CEO deflects speculation about Tesla (TSLA) acquisition, Re/code says
Procter & Gamble (PG) not worth the risk, Barron's reports
SYNDICATE
EQT Midstream Partners (EQM) files to sell 8.25M common units
Goldman Sachs BDC (GSBD) to offer 6M shares in an IPO
Heat Biologics (HTBX) files to sell common stock, no amount given
KYTHERA (KYTH) 2.604M share Secondary priced at $48.00
Marcus & Millichap (MMI) files to sell 4M shares of common stock for holders
MasterCard (MA) 12.773M share Spot Secondary; price range $86.85-$87.95
Sunoco Logistics (SXL) 13.5M share Spot Secondary re-offering price is $41.76