- White House questions new Ebola rules, nurse plans to sue (Reuters)
- States stand firm on Ebola quarantines despite White House pressure (Reuters)
- Rousseff Naming Brazil Finance Minister Key to Regain Trust (BBG)
- Ukraine leader wins pro-West mandate but wary of Russia (Reuters)
- Single Firm Holds More Than 50% of Copper in LME Warehouses (WSJ)
- Treasury Liquidity Squeeze Seen as Dealer Shut Off Machine (BBG)
- CVS follows Rite-Aid, shuts off Apple Pay (USAToday)
- Oil Speculators Bet Wrong as Rebound Proves Fleeting (BBG)
- Draghi Sets Stimulus Pace as ECB Reveals Covered-Bond Purchases (BBG)
- German Ifo Business Confidence Drops for Sixth Month (BBG)
- Eurozone loans to private sector still contracting (AFP)
- Darker Global Outlook Has Bond Bears Hibernating (WSJ)
- U.S. Gains From Good Deflation as Europe Faces the Bad (BBG)
- Troubles in China rattle western banks (Business Specator)
- Belka Surprises Revealing Worst-Kept Polish Zloty Secret (BBG)
Overnight Media Digest
WSJ
* The White House pushed back against the governors of New York, New Jersey, Illinois and other states that instituted procedures to forcibly quarantine medical workers returning from West Africa, deepening a debate brought on by recent Ebola cases in the United States. (http://on.wsj.com/1pPdgSG)
* New York City's top counter-terrorism official went to Florida last week to warn a group of police chiefs about the growing threat of self-radicalized terrorists. (http://on.wsj.com/10uE2tT)
* European regulators said that all but 13 of the continent's leading banks have enough capital to weather a financial storm, an attempt to put to rest years of anxiety about the industry's health. (http://on.wsj.com/1yEoxuz)
* Weaker economic indicators have led many investors to reverse their recent opinion that a bond-market downturn was near. (http://on.wsj.com/12NwHGO)
* China plans to slash compensation for top executives at the largest state-owned firms, a move that conflicts with Beijing's goal of making the companies more market-driven. (http://on.wsj.com/1w7UPyJ)
* Banamex, Citigroup Inc's once-prized Mexico subsidiary, is cleaning house. In addition to the departure of the unit's CEO earlier this month, high-ranking employees of the bank's Banamex division, including the head of administration, general counsel and head of internal investigations, also have left this year. (http://on.wsj.com/1FPpo0n)
* Williams Companies Inc sweetened the terms of its deal to merge two master limited partnerships it controls to create one giant natural-gas pipeline system. (http://on.wsj.com/1tzZnNe)
* Big banks are demanding that their law firms do more to protect sensitive information to ensure that they do not become back doors for hackers. (http://on.wsj.com/1yErhbe)
FT
China, the world's second-biggest economy, is expected to invest 105 billion pounds (168.93 billion US dollars) in British infrastructure by 2025, with energy, property and transport being the biggest recipients, according to a report by the London-based Centre for Economics and Business Research and the law firm Pinsent Masons.
The towns of Britain are being "swamped" by immigrants, and the residents of these towns are "under siege", the UK defence secretary, Michael Fallon, said on Sunday.
Marks & Spencer Group, Waitrose and easyJet are among some of Britain's largest companies who have joined a government-backed campaign to train employees in how to deal with Alzheimer's disease among customers and family members in a sign that big businesses are adapting to the demands of an ageing population.
Regional businesses of Britain are choosing sides in the fight over airport expansion between Heathrow and Gatwick in southeast England.
NYT
* Rite Aid Corp and CVS Health Corp disabled Apple Pay from working in their stores nationwide. The reason was not immediately clear. (http://nyti.ms/1Di1o1N)
* The bulk of Europe's biggest banks would be able to survive a financial crisis or severe economic downturn, the European Central Bank said on Sunday, concluding a yearlong audit of eurozone lenders that is potentially a turning point for the region's battered economy (http://nyti.ms/1FPoe4T)
* This summer, as Allergan Inc, the maker of Botox, was coming under increased pressure to sell itself to Valeant Pharmaceuticals Inc and the hedge fund Pershing Square Capital Management, its executives grew tired of playing defense. They wanted their advisers at Goldman Sachs Group Inc to take the fight to Valeant. (http://nyti.ms/1wAElz9)
* Deutsche Bank AG said on Friday it would record 894 million euros ($1.13 billion) in litigation costs for the third quarter as it set aside yet more money to cover the cost of lawsuits and official investigations related to accusations of past wrongdoing. (http://nyti.ms/1wugGzk)
* Chiquita Brands International Inc shareholders voted down the company's proposed acquisition of Fyffes Plc , an Irish produce distributor. In doing so, the Chiquita shareholders tacitly endorsed a roughly $680 million takeover bid by an unusual consortium made up of the Cutrale Group, a Brazilian wholesale orange juice producer, and the Safra Group, a holding company in Brazil. (http://nyti.ms/10uCZu3)
* Roku, the popular video streaming device maker, is preparing a potential filing for an initial public offering, people briefed on the matter said Friday. (http://nyti.ms/ZSOg6p)
Canada
THE GLOBE AND MAIL
** More than a year into unproductive negotiations, Canada's banks and credit-card companies are bracing for Ottawa's final verdict on interchange fees which could come as early as Monday. According to people involved in the discussions, the Finance Department - frustrated with the pace of negotiations - asked the credit-card companies to submit their final proposals last Monday. (http://bit.ly/1xuFoil)
** With the Conservative government set to table expanded powers for Canada's spies as early as Monday, the watchdog overseeing the Canadian Security Intelligence Service (CSIS) has identified flaws in how the agency operates with tools already at its disposal. A report tabled on Friday by the Security Intelligence Review Committee suggests the CSIS is operating without sufficient controls or scrutiny by its overseers. (http://bit.ly/1tcdHMc)
** The man who committed the attack on Parliament Hill that left a Canadian soldier dead was driven by a political and ideological motives, the Royal Canadian Mounted Police said, as it provided new details that shed light on the assault that shook Ottawa last week. (http://bit.ly/1wuun15)
NATIONAL POST
** Alberta is going to the polls on Monday. Heralded as a 'mini-election,' the results will predict just how well new premier Jim Prentice has been received in the wake of the Alison Redford era. (http://bit.ly/1wASX2S)
** After a traumatizing week in which federal leaders embraced each other in sympathy in the House of Commons, last week's attacks in Quebec and Ottawa remain free of political spin. But already contrasting narratives are emerging on how these events might influence next year's federal election, according to political observers. (http://bit.ly/1wuCDhH)
China
CHINA SECURITIES JOURNAL
- About half of China's more than 2,000 listed companies have reported third-quarter earnings which showed profit growth slowed in line with a slowdown in the local economy. All firms have to report their quarterly earnings by the end of October.
- China will make fresh efforts to expand its agricultural product futures market to support the development of the country's agricultural sector, China Securities Regulatory Commission Vice Chairman Jiang Yang said at a forum over the weekend.
SHANGHAI SECURITIES NEWS
- A total of 2,131 Chinese mutual funds posted a combined net profit of 211 billion yuan ($34.5 billion) in the third quarter, their best quarterly earnings since 2010, thanks to a 15 percent rebound in the country's stock market during the period.
- Steel and iron prices in China started falling again last week following a short-lived rebound, pointing to a continued weakness in the country's steel sector which has been plagued by overcapacity.
PEOPLE'S DAILY
- The ruling Communist Party of China must keep the leadership firm while the country is conducting legal reforms, the newspaper, which is also the party's mouthpiece, said in a commentary after the plenary session of the party's central committee last week.
CHINA DAILY
- China's current fight against corruption is one that the Communist Party cannot afford to lose as the country promotes the rule of law, the newspaper said in an editorial
Britain
The Times
ONE IN FIVE EUROPEAN BANKS FAILS ECB STRESS TESTS Fourteen of Europe's largest banks have failed "stress tests" designed to assess the ability of big lenders to withstand a financial crisis and have been ordered to raise nearly 10 billion euros ($12.68 billion) to plug a shortfall in their balance sheets. (http://thetim.es/1t6T7Lu) UPSTART TSB PINCHES ITS PARENT'S CUSTOMERS
TSB Banking Group Plc has grabbed customers from its larger rivals, including its own parent Lloyds Banking Group Plc , attracting one out of every ten savers who switched accounts in the past three months. (http://thetim.es/1pOttYr)
The Guardian
ENERGY SECRETARY REASSURES HOUSEHOLDS AFTER POWER STATION FIRES The energy secretary, Ed Davey, has sought to reassure households that there will be no energy shortage this winter, after a series of fires at power stations raised fears about Britain's lights going out. (http://bit.ly/1tXcUAH)
The Telegraph RECKITT BENCKISER TO DETAIL SPIN-OFF PLAN NEXT MONTH Reckitt Benckiser Group Plc, the maker of Cillit Bang, Vanish and Nurofen, is to reveal to shareholders details of its plans to spin off its pharmaceutical division into a separate stock listing. (http://bit.ly/1v16sTI) OFFICE TO EXPAND AS OWNERS EXAMINE SALE Silverfleet, the private equity firm which owns Office, is understood to be considering selling the business four years after taking control, and has hired bankers at JPMorgan Chase & Co to provide advice on which route to take. (http://bit.ly/1xtjjAC) GULF KEYSTONE PETROLEUM WINS COSTS RULING
A Greek shipping tycoon and two New York hedge funds have been found liable to pay the final costs in Gulf Keystone Petroleum Ltd's billion-dollar dispute over its oilfields in Iraqi Kurdistan. Gulf Keystone has already recovered 17.5 million pounds ($28.15 million) in legal costs, after Rex and Eric Wempen's Excalibur Ventures lost its "opportunistic" attempt to claim a $1.65bn share of oilfields owned by Gulf Keystone and its sister company, Texas Keystone. Now Lord Justice Christopher Clarke has ordered the nine parties who funded Excalibur's lawsuit to pay Gulf Keystone's outstanding legal costs, estimated at between 4 million pounds and 5 million pounds. (http://bit.ly/1wytPtx)
Sky News
LLOYDS BANK: MORE THAN 200 BRANCHES TO CLOSE
Lloyds Banking Group will set out plans next week to close more than 200 branches under a blueprint that will also see 9,000 jobs disappear. (http://bit.ly/1w7CFNB)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Pending home sales index for September at 10:00--consensus up 0.8%
Dallas Fed manufacturing survey for October at 10:30--consensus 7.5
ANALYST RESEARCH
Upgrades
ARAMARK (ARMK) upgraded to Buy from Neutral at Goldman
Aaron's (AAN) upgraded to Outperform from Market Perform at Raymond James
Accuride (ACW) upgraded to Buy from Neutral at B. Riley
Acuity Brands (AYI) upgraded to Conviction Buy from Buy at Goldman
Alcoa (AA) upgraded to Buy from Hold at Deutsche Bank
BB&T (BBT) upgraded to Buy from Neutral at Sterne Agee
Core Laboratories (CLB) upgraded to Overweight from Neutral at HSBC
DineEquity (DIN) upgraded to Buy from Neutral at Longbow
FLIR Systems (FLIR) upgraded to Outperform from In-Line at Imperial Capital
First Niagara (FNFG) upgraded to Outperform from Market Perform at Wells Fargo
Flowserve (FLS) upgraded to Buy from Hold at Stifel
Garmin (GRMN) upgraded to Buy from Neutral at Goldman
L Brands (LB) upgraded to Neutral from Underperform at BofA/Merrill
Mondelez (MDLZ) upgraded to Outperform from Sector Perform at RBC Capital
Newmont Mining (NEM) upgraded to Overweight from Neutral at HSBC
ONEOK (OKE) upgraded to Buy from Neutral at Goldman
Oceaneering (OII) upgraded to Conviction Buy from Buy at Goldman
Rackspace (RAX) upgraded to Buy from Neutral at BofA/Merrill
Shire (SHPG) upgraded to Outperform from Market Perform at William Blair
Targa Resources Partners (NGLS) upgraded to Buy from Neutral at Goldman
Downgrades
Abraxas Petroleum (AXAS) downgraded to Hold from Buy at Stifel
Anadarko (APC) downgraded to Neutral from Buy at Goldman
Basic Energy (BAS) downgraded to Sell from Buy at Goldman
CommScope (COMM) downgraded to Underperform from Buy at BofA/Merrill
Concho Resources (CXO) downgraded to Hold from Buy at Stifel
Consolidated Communications (CNSL) downgraded to Market Perform at Raymond James
Continental Resources (CLR) downgraded to Neutral from Buy at Goldman
Corporate Executive downgraded to Equal Weight from Overweight at Barclays
Covanta (CVA) assumed with a Neutral from Outperform at Macquarie
DCP Midstream (DPM) downgraded to Neutral from Buy at Goldman
Denbury Resources (DNR) downgraded to Hold from Buy at Stifel
Diamond Offshore (DO) downgraded to Sell from Neutral at Goldman
Diana Shipping (DSX) downgraded to Hold from Buy at Deutsche Bank
EP Energy (EPE) downgraded to Neutral from Buy at Goldman
Emerge Energy (EMES) downgraded to Neutral from Buy at Goldman
Enduro Royalty Trust (NDRO) downgraded to Neutral from Buy at Goldman
GOL Linhas (GOL) downgraded to Neutral from Buy at BofA/Merrill
Goodrich Petroleum (GDP) downgraded to Hold from Buy at Stifel
Halliburton (HAL) downgraded to Buy from Conviction Buy at Goldman
Home Loan Servicing (HLSS) downgraded to Neutral from Buy at Citigroup
ICON plc (ICLR) downgraded to Equal Weight from Overweight at Barclays
IHS Inc. (IHS) downgraded to Equal Weight from Overweight at Barclays
Jones Energy (JONE) downgraded to Hold from Buy at Stifel
Laredo Petroleum (LPI) downgraded to Sell from Neutral at Goldman
Lloyds Banking (LYG) downgraded to Underperform from Hold at Jefferies
Midcoast Energy (MEP) downgraded to Neutral from Buy at Goldman
PDC Energy (PDCE) downgraded to Hold from Buy at Stifel
PNC Financial (PNC) downgraded to Neutral from Buy at Sterne Agee
Parsley Energy (PE) downgraded to Sell from Neutral at Goldman
Patterson-UTI (PTEN) downgraded to Neutral from Conviction Buy at Goldman
Pioneer Energy (PES) downgraded to Neutral from Buy at Goldman
Precision Castparts (PCP) downgraded to Neutral from Overweight at JPMorgan
Precision Castparts (PCP) downgraded to Outperform from Top Pick at RBC Capital
Royal Gold (RGLD) downgraded to Neutral from Overweight at HSBC
SM Energy (SM) downgraded to Hold from Buy at Stifel
Sanchez Energy (SN) downgraded to Hold from Buy at Stifel
Scorpio Bulkers (SALT) downgraded to Hold from Buy at Deutsche Bank
Synergy Resources (SYRG) downgraded to Hold from Buy at Stifel
Ventas (VTR) downgraded to Neutral from Buy at UBS
Whiting Petroleum (WLL) downgraded to Hold from Buy at Stifel
Initiations
Calithera Biosciences (CALA) initiated with a Buy at Citigroup
Calithera Biosciences (CALA) initiated with an Outperform at JMP Securities
Calithera Biosciences (CALA) initiated with an Outperform at Leerink
Calithera Biosciences (CALA) initiated with an Outperform at Wells Fargo
Castlight Health (CSLT) initiated with an Outperform at Leerink
Civitas Solutions (CIVI) initiated with a Buy at BofA/Merrill
Civitas Solutions (CIVI) initiated with a Buy at UBS
Civitas Solutions (CIVI) initiated with an Overweight at Barclays
Everyday Health (EVDY) initiated with an Outperform at Leerink
FMSA Holdings (FMSA) initiated with a Neutral at RW Baird
Flowers Foods (FLO) initiated with a Sell at Pivotal Research
Imprivata (IMPR) initiated with an Outperform at Leerink
Omega Protein (OME) initiated with a Buy at Pivotal Research
Vascular Biogenics (VBLT) initiated with an Outperform at JMP Securities
Veeva (VEEV) initiated with a Market Perform at Leerink
Vivint Solar (VSLR) initiated with a Buy at Deutsche Bank
Vivint Solar (VSLR) initiated with a Buy at Goldman
Vivint Solar (VSLR) initiated with a Neutral at Citigroup
Vivint Solar (VSLR) initiated with an Outperform at Credit Suisse
WageWorks (WAGE) initiated with an Outperform at Leerink
Wayfair (W) initiated with a Buy at Canaccord
Wayfair (W) initiated with a Buy at Citigroup
Wayfair (W) initiated with a Buy at Goldman
Wayfair (W) initiated with an Outperform at Pacific Crest
Wayfair (W) initiated with an Outperform at Wells Fargo
Wayfair (W) initiated with an Overweight at Piper Jaffray
WebMD (WBMD) initiated with an Outperform at Leerink
COMPANY NEWS
Williams (WMB), Williams Partners (WPZ) and Access Midstream (ACMP) announced merger agreement with an approximately $50B total transaction value. Williams also affirmed dividend-growth guidance of approximately 15% annually and said it would complete the drop-down of its remaining NGL & Petchem Services assets and projects by late 2014 or early 2015
Tesla (TSLA) CEO Musk announced 'improved' leasing with U.S. Bank (USB)
Google's (GOOG) Nest acquired Revolv, terms not disclosed
Twitter (TWTR) acquired Twitpic domain and photo archive
FCC cleared Level 3's (LVLT) pending acquisition of tw telecom (TWTC)
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Investar Holding (ISTR), Huntsman (HUN), Precision Drilling (PDS), Stonegate Bank (SGBK)
Companies that missed consensus earnings expectations include:
Southside Bancshares (SBSI)
CBIZ, Inc. (CBZ) sees FY14 EPS up 15%-18%
CBIZ, Inc. (CBZ) reports Q3 EPS 14c, one estimate 12c
Education Realty (EDR) backs FY14 core FFO 61c-64c, consensus 62c
Education Realty (EDR) reports Q3 FFO 11c, consensus 11c
Siliconware Precision (SPIL) reports Q3 EPS 17c, one estimate 15c
Emclaire Financial (EMCF) reports Q3 EPS 56c vs. 54c a year ago
Waterstone Financial (WSBF) reports Q3 EPS 14c vs. 9c last year
NEWSPAPERS/WEBSITES
Apple (AAPL) plans to relaunch Beats Music next year under iTunes brand, WSJ reports
CVS (CVS) may be disabling NFC to shut down Apple Pay (AAPL), Google Wallet (GOOG), MacRumors reports (RAD)
AT&T (T) to lock Apple's (AAPL) SIM cards to its network on new iPads, WSJ reports
Shire (SHPG) CEO 'dumbfounded' by AbbVie's (ABBV) decision, Bloomberg says
HP (HPQ) seeks buyer for Chinese networking business, DJ reports
Amazon.com (AMZN) doesn't look like a bargain, Barron's says
MasterCard (MA) looks reasonable, Barron's says
Coca-Cola (KO) looks likely to underperform, Barron's says
SYNDICATE
Covanta (CVA) files automatic mixed securities shelf
Oncolytics Biotech (ONCY) enters $20M 'at-the-market' equity distribution agreement
Rose Rock Midstream (RRMS) files to sell $150M of common units
Summit Financial Group (SMMF) files $15M mixed securities shelf