- Average 10-year yield of U.S., Japan and Germany dropped below 1% for the first time ever: Free Money in Bond Markets Shows Global Economy Still Struggling (BBG)
- China Fast-Tracks $1 Trillion in Projects to Spur Growth (BBG)
- Brent falls below $52 as oil hits new five and a half year lows (Reuters)
- Saudi Arabia Raises Price of Main Oil Grade for Asian Buyers (BBG)
- Oilfield Writedowns Loom as Crude Slump Guts Drilling Values (BBG)
- Biggest Oil-Rig Drop Since 2009 Spells Tough Year Ahead (BBG)
- CIA says its inspector general is resigning at end of month (Reuters)
- Pipeline IPOs Climb on Demand for Returns Immune to Oil (BBG)
- Natural Gas No Savior for Investors Seeking Oil Refuge (BBG)
- Euro zone economy ended 2014 in poor shape (Reuters)
- Russia Showing Off Military Hardware in AirAsia Search (BBG)
- Ukraine Bonds at 60 Cents Seen Signaling Risk of Default (BBG)
- NetJets Unrest Puts Warren Buffett in a Rare Pinch (WSJ)
- Thousands flee intensifying India-Pakistan clashes (Reuters)
- Crop of Young Outsiders Remakes the Face of Congress (WSJ)
- Singapore Private Bankers Wake Up to Junk Bond Risks as Cracks Emerge (BBG)
- Germans Protest Anti-Islamist Rally as Landmarks Go Dark (BBG)
- Launch of SpaceX rocket from Florida called off (Reuters)
Overnight Media Digest
WSJ
* Stock markets around the globe tumbled as oil briefly fell below $50 a barrel and fresh worries arose about Europe's economy, fueling fears of deflation. (http://on.wsj.com/1wgNIAN)
* Despite a bad bet on Caesars Entertainment Corp, Apollo Global Management may avoid losing all of its chips. Through a series of financial maneuvers, Apollo has positioned itself to salvage some of the $1.7 billion it invested in Caesars. The restructuring hinges on the bankruptcy of Caesars's largest unit, which could come as soon as mid-January, and transfers of the unit's best assets that have infuriated creditors. (http://on.wsj.com/1BCpmVG)
* Morgan Stanley fired one of its financial advisers after it accused him of stealing account data on about 350,000 clients and posting some of that information online. (http://on.wsj.com/1Bscxzl)
* Dissent is brewing in the pilot ranks of NetJets Inc , the company owned by Warren Buffett's Berkshire Hathaway. Labor unrest is unusual for a Berkshire company and this particular fight is turning nasty. (http://on.wsj.com/1xMDbQZ)
* Facebook Inc said it had acquired Wit.ai, a voice-recognition startup that claims to "turn speech into actionable data," a move that could give the social network more information for targeted advertisements. (http://on.wsj.com/1vWJVaW)
* Financial news network CNBC will no longer rely on TV ratings specialist Nielsen to measure its daytime audience, beginning later this year. Instead, it has retained marketing and research firm Cogent Reports for the task. (http://on.wsj.com/1BCqLLW)
* Sony Corp Chief Executive Officer Kazuo Hirai made his first public comments Monday on the recent hacking attack on its movie division, thanking employees and partners for support that made the movie, the Interview, available to public audiences. (http://on.wsj.com/1wR5UA3)
FT
British bank Lloyds Banking Group PLC is seeking a waiver on one of the key measures of the UK's new ringfencing regime for its ringfenced entity to have a different board of directors to that of its parent group, as the country's big banks take prepare for submission of their plans to protect ordinary customers from the banks' risky activities.
German Chancellor Angela Merkel will hold talks with David Cameron in Downing Street on Wednesday as part of a UK visit that is expected to set out her limits for helping the British prime minister renegotiate Britain's relationship with Europe.
Finance minister George Osborne cast the UK general election as a choice between "competence and chaos," as the Conservatives began a four-month offence against the Labour claiming that the opposition party has almost 21 billion pounds ($32.05 billion) of unfunded spending plans.
Scottish football club Rangers confirmed it had received an offer from American financier Robert Sarver to take control of the ailing company that owns it.
NYT
* TPG's head of global operations, Kevin Burns, is generating additional payments through his role as acting president and chief operating officer of Chobani, the yogurt maker that took a $750 million loan from TPG last April, according to people briefed on the matter. (http://nyti.ms/1yurcua)
* Morgan Stanley fired a financial adviser who allegedly stole account information of its wealth management clients and posted some of it online. The bank traced the breach to a financial adviser working out of its New York offices, a 30-year-old named Galen Marsh, according to a person involved in the investigation. (http://nyti.ms/14repfE)
* Gilead Sciences Inc struck back on Monday against its rival AbbVie Inc in a budding marketing war over costly hepatitis C drugs, winning exclusive access to many patients whose prescriptions are managed by CVS Health Corp . (http://nyti.ms/1tEFKR7)
* The U.S. Justice Department announced on Monday that it had joined two whistle-blower lawsuits filed against the doctor, Asad Qamar, a cardiologist who collected more than $18 million in payments from Medicare in 2012, and his medical group, the Institute for Cardiovascular Excellence. Qamar has been accused by the federal government of performing unnecessary procedures on patients. (http://nyti.ms/1BDL9N2)
Canada
THE GLOBE AND MAIL
* Ottawa is set to announce new funding on Tuesday for a "direct diplomacy" project aimed at communicating directly with Iranian citizens as it looks to apply a similar strategy in other countries, including Russia and parts of Iraq and Syria. (http://bit.ly/1Ff5fCV)
* Canada's public broadcaster CBC has suspended two senior executives - Chris Boyce, executive director of CBC Radio, and Todd Spencer, executive director of human resources and industrial relations - in connection with the Jian Ghomeshi scandal. (http://bit.ly/13VJ3fT)
* A senior figure in Islamic State's self-declared police force in Syria, which has carried out beheadings, was himself found decapitated in the eastern province of Deir al-Zor, the Syrian Observatory for Human Rights said on Tuesday. (http://bit.ly/1xNnqwd)
NATIONAL POST
* The arrival of Mexican drug traffickers, along with increased activity by outlaw motorcycle gangs, is changing the face of organized crime in Alberta. Royal Canadian Mountain Police's commanding officer in Alberta says the syndicates are now basing people here to import and distribute cocaine and other drugs. (http://bit.ly/1Bu5Lcr)
* After five years without a gold medal at the ice hockey world junior championship, including a spectacular third-period collapse against Russia in the final four years ago, Canada finally won the IIHF World Junior Championship, beating Russia 5-4. (http://bit.ly/1vY8l3O)
* Calgary-based triathlete Tamara Loiselle risked her life to rescue a drowning couple while vacationing in Mexico. Loiselle almost drowned about six years ago after she fell off a boat and didn't have the strength to pull herself up. She vowed to get back into shape. The strength she earned over time would save two people. (http://bit.ly/1FfuCoh)
China
CHINA SECURITIES JOURNAL
- The Shanghai municipal government on Monday approved the establishment of a petroleum and natural gas trading centre.
- The Legislative Affairs Office of the State Council, China's cabinet, on Monday said the State Administration of Taxation and the Ministry of Finance were seeking opinions on a draft amendment for tax administration law and were clarifying the legal status of the taxpayer identification system.
CHINA DAILY
- The Chinese Communist Party's internal discipline watchdog said 102,168 officials were sacked last year for violating the "eight-point rules" on frugality, including disobeying workplace rules, using public funds for overseas travel or personal entertainment and excessive spending on receptions and vehicles.
PEOPLE'S DAILY
- This year will be a crucial year for the comprehensive deepening of reform, and a rule of law mindset is indispensable, an editorial said.
Britain
The Times
The euro has slumped to a nine-year low against the dollar, buffeted by market expectations that the European Central Bank is poised to launch full-blown quantitative easing and renewed fears over political uncertainty in Greece. (thetim.es/1Ii6Dkv)
Shares in Marks and Spencer Group Plc fell steeply Monday after City analysts warned that an expected rise in food sales over Christmas was unlikely to offset a forecast decline in clothing during the last quarter. (thetim.es/1DcogUO)
The Guardian
More than 1,500 high street jobs are at risk after the clothing chain Bank Fashion collapsed into administration. (bit.ly/1xM1NJt)
Quarterly poll of chief finance officers finds firms fear uncertain times ahead, with possible exit from EU also cited as a worry. (bit.ly/1HxYOsu)
The Telegraph
Dave Lewis, chief executive officer of Tesco Plc, is considering closing the retailer's defined-benefit pension scheme to new members as part of his plan to shore up the company's battered balance sheet. (bit.ly/1DbUwY5)
Chris Sullivan, the deputy chief executive of Royal Bank of Scotland Group Plc, has left the taxpayer-owned lender early. (bit.ly/1xLrOfi)
CitySprint, one of the UK's biggest courier firms, has hired advisers to explore strategic options for the company just weeks after the demise of delivery rival City Link. (bit.ly/1KfWw3w)
Sky News
The euro has dropped to a nine-year low against the US dollar as investor fears over growth prospects continue to grow. (bit.ly/13UwCAU)
Newly released sales data from one of Britain's biggest high street chains has revealed a shopping revolution because of Black Friday discounting. (bit.ly/1DrxyJW)
The Independent
"Click and collect" overtook home deliveries at John Lewis Plc over Christmas - as the retailer relied on Internet purchases to boost sales during the festive period. (ind.pn/1F8UZfA)
Thomas Gilbert, a $200 million (131.04 million pounds) hedge fund founder, has been discovered shot dead in his New York flat. (ind.pn/1vRCmCl)
Corporate
* Verizon Communications Inc approached AOL Inc about a potential acquisition or joint venture to expand its mobile-video offerings, Bloomberg reported, citing people with knowledge of the matter.
* European private equity firm Cinven's acquisition of the public-sector division of British software firm Northgate Information Solutions will be backed with 285 million pounds($434 million) of debt financing, banking sources said on Monday.
* United Arab Emirates-based healthcare provider NMC Health , founded by billionaire Indian entrepreneur B.R. Shetty, is in talks with bankers for a potential long-term loan, four sources with knowledge of the matter said on Monday.
* Acushnet Company, which owns golf brands such as Titleist and Footjoy, chose U.S.-based Solebury Capital to advise on a potential IPO seen worth around $1.8 billion around 2016, a source with direct knowledge said on Tuesday.
* Accessories retailer Coach Inc is nearing a deal to buy privately held women's luxury shoe company Stuart Weitzman Holdings LLC for about $600 million, according to a person familiar with the matter.
* Paul Tudor Jones, the founder and chief investment officer of the roughly $13 billion hedge fund firm Tudor Investment Corp, has closed his firm's oldest fund, a source familiar with the matter said on Monday.
* Lewis Ranieri is nearing a deal to sell commercial real-estate services firm Situs Holdings, in the mortgage-bond pioneer's latest effort to cash in on a rising property market, the Wall Street Journal reported, citing people familiar with the matter. (on.wsj.com/1wg6JUb)
* Britain's Financial Conduct Authority plans to fine the investment banking unit of the failed Portuguese lender Banco Espirito Santo SA for violating listing rules, the Wall Street Journal reported, citing two people familiar with the matter.
* NPS Pharmaceuticals, which develops treatment for rare diseases, is looking for a buyer, the Wall Street Journal reported. NPS Pharma's advisers at Goldman Sachs Group Inc have started contacting other companies to gauge their interest, WSJ said, citing people familiar with the matter.
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Markit services PMI for December at 9:45--consensus 53.6
ISM non-manufacturing survey for December at 10:00--consensus 58.0
Factory orders for November at 10:00--consensus down 0.5%
ANALYST RESEARCH
Upgrades
Anthem (ANTM) upgraded to Buy from Hold at Deutsche Bank
Becton Dickinson (BDX) upgraded to Buy from Neutral at BofA/Merrill
C.H. Robinson (CHRW) upgraded to Neutral from Sell at Goldman
Constellation Brands (STZ) upgraded to Buy from Neutral at Goldman
Delhaize (DEG) upgraded to Buy from Neutral at BofA/Merrill
El Pollo Loco (LOCO) upgraded to Buy from Hold at Jefferies
FedEx (FDX) upgraded to Buy from Neutral at UBS
Flagstar Bancorp (FBC) upgraded to Outperform from Market Perform at FBR Capital
Humana (HUM) upgraded to Hold from Sell at Deutsche Bank
Huntington Ingalls (HII) upgraded to Buy from Neutral at BofA/Merrill
Infoblox (BLOX) upgraded to Buy from Hold at Deutsche Bank
Oracle (ORCL) upgraded to Overweight from Neutral at Piper Jaffray
Public Storage (PSA) upgraded to Neutral from Sell at Goldman
Rockwell Collins (COL) upgraded to Neutral from Underperform at BofA/Merrill
Siliconware Precision (SPIL) upgraded to Outperform from Neutral at Credit Suisse
Workday (WDAY) upgraded to Overweight from Equal Weight at Barclays
Downgrades
Aerohive (HIVE) downgraded to Neutral from Buy at Goldman
Associated Estates (AEC) downgraded to Hold from Buy at MLV & Co.
BroadSoft (BSFT) downgraded to Neutral from Buy at Goldman
CGG SA (CGG) downgraded to Sell from Neutral at UBS
CSX (CSX) downgraded to Neutral from Buy at UBS
Domino's Pizza (DPZ) downgraded to Hold from Buy at Jefferies
General Electric (GE) downgraded to Hold from Buy at Deutsche Bank
H.B. Fuller (FUL) downgraded to Hold from Buy at KeyBanc
Infinera (INFN) downgraded to Buy from Conviction Buy at Goldman
LogMeln (LOGM) downgraded to Underweight from Equal Weight at Barclays
MGM China (MCHVF) downgraded to Hold from Buy at Deutsche Bank
Mallinckrodt (MNK) downgraded to Market Perform from Outperform at BMO Capital
Melco Crown (MPEL) downgraded to Neutral from Buy at BofA/Merrill (yesterday)
NetSuite (N) downgraded to Equal Weight from Overweight at Barclays
Noodles & Company (ndls) downgraded to Neutral from Buy at UBS
Norfolk Southern (NSC) downgraded to Neutral from Buy at UBS
QIAGEN (QGEN) downgraded to Underperform from Neutral at BofA/Merrill
Roka Bioscience (ROKA) downgraded to Underperform from Neutral at BofA/Merrill
Sensata (ST) downgraded to Sector Perform from Outperform at RBC Capital
Varonis (VRNS) downgraded to Equal Weight from Overweight at Barclays
Initiations
Alexion (ALXN) initiated with an Overweight at Barclays
Amgen (AMGN) initiated with an Equal Weight at Barclays
Aon plc (AON) initiated with a Buy at Jefferies
Avolon (AVOL) initiated with a Buy at Citigroup
Avolon (AVOL) initiated with an Outperform at Cowen
Avolon (AVOL) initiated with an Outperform at Wells Fargo
Biogen (BIIB) initiated with an Overweight at Barclays
Celgene (CELG) initiated with an Equal Weight at Barclays
Ellie Mae (ELLI) initiated with a Buy at Roth Capital
Encana (ECA) reinstated with an Equal Weight at Barclays
Gilead (GILD) initiated with an Overweight at Barclays
Hortonworks (HDP) initiated with a Buy at Goldman
Hortonworks (HDP) initiated with an Outperform at Pacific Crest
Hortonworks (HDP) initiated with an Outperform at RBC Capital
James River Group (JRVR) initiated with a Buy at UBS
James River Group (JRVR) initiated with an Outperform at FBR Capital
KEYW (KEYW) initiated with an In-Line at Imperial Capital
Marsh & McLennan (MMC) initiated with a Hold at Jefferies
Medivation (MDVN) initiated with an Overweight at Barclays
NPS Pharmaceuticals (NPSP) initiated with an Overweight at Barclays
New Relic (NEWR) initiated with a Neutral at UBS
Palo Alto (PANW) initiated with an Outperform at RBC Capital
Pharmacyclics (PCYC) initiated with a Buy at BTIG
Regeneron (REGN) initiated with an Equal Weight at Barclays
Sunesis (SNSS) initiated with a Buy at BTIG
Towers Watson (TW) initiated with a Buy at Jefferies
United Therapeutics (UTHR) initiated with a Neutral at BTIG
United Therapeutics (UTHR) initiated with an Equal Weight at Barclays
Vertex (VRTX) initiated with a Buy at BTIG
Vertex (VRTX) initiated with an Equal Weight at Barclays
Western Union (WU) initiated with a Hold at Stifel
Workiva (WK) initiated with a Buy at Stifel
Workiva (WK) initiated with an Outperform at RW Baird
Workiva (WK) initiated with an Overweight at Morgan Stanley
Xoom (XOOM) initiated with a Buy at Stifel
Zillow (Z) initiated with a Market Perform at Cowen
COMPANY NEWS
Xoom (XOOM) determined that it has been the victim of a criminal fraud. The company also said that Matt Hibbard resigned as CFO, effective immediately
Facebook (FB) said it acquired speech recognition startup Wit.ai
Johnson & Johnson (JNJ) announced the start of a Phase 1, first-in-human clinical trial of a preventive Ebola vaccine in development at its Janssen Pharmaceutical
Companies
Salix (SLXP) CEO Carolyn Logan to retire, effective January 30. Tom D’Alonzo will be appointed acting CEO, and William Bertrand, Jr., the company’s SVP and General Counsel, will be appointed acting COO, pending the company’s hiring of a permanent CEO
EARNINGS
Companies that missed consensus earnings expectations include:
Peak Resorts (SKIS), Ennis (EBF)
SciClone (SCLN) backs FY14 EPS view of 64c-68c, one estimate 56c. The company sees FY14 revenue $152M-$158M, one estimate $151.2M
Xoom (XOOM) raises Q4 revenue view to $43.1M-$43.6M from $41M-$43M, consensus $41.8M
Helix Energy (HLX) backs FY14 EPS view $1.85-$1.95, consensus $1.95
InspireMD (NSPR) reports Q4 revenue approximately $900,000, consensus $700,000
NEWSPAPERS/WEBSITES
NPS Pharmaceuticals (NPSP) hires Goldman (GS) to help find buyer, WSJ reports (SHPG, ABBV)
Verizon (VZ) contacts AOL (AOL) regarding possible takeover or venture, Bloomberg reports
Coach (COH) close to deal to purchase Stuart Weitzman for about $600M, WSJ reports
Morgan Stanley (MS) client data theft probed by FBI, Reuters reports
Toyota (TM) to offer almost 6K FCV patents for free, Nikkei reports
RBS (RBS) deputy CEO leaves lender early, Telegraph reports
Gap (GPS) stock is 'on sale,' Barron's contends
SYNDICATE
Alder Biopharmaceuticals (ALDR) files to sell 4M shares of common stock
Avalanche Biotechnologies (AAVL) files to sell 2M shares of common stock
Cempra (CEMP) files to sell $100M in common stock
Cerus (CERS) intends to offer common stock
Five Prime (FPRX) files to sell $75M in common stock
Karyopharm (KPTI) announces proposed offering of 3M shares of common stock
Synageva (GEVA) files to sell 2.5M shares of common stock