- Twelve shot dead in Paris (Reuters)
- Eurozone Consumer Prices Fall for First Time Since 2009 (NYT)
- Euro's Drop is a Turning Point for Central Banks Reserves (BBG)
- How $50 Oil Changes Almost Everything (BBG)
- Mercedes-Benz Moving U.S. Headquarters to Atlanta (WSJ)
- Greek 10-Year Bond Yields Exceed 10% for First Time Since 2013 (BBG)
- How Even Dairy Farmers Get Squeezed by Rigging in the $5.3 Trillion Currency Market (BBG)
- AirAsia jet tail found underwater, black box may be close (Reuters)
- Italy Unemployment Rises to New High (Bloomberg)
- Investment Firm 3G Capital Eyes Next Targets (WSJ)
- German government websites, including Merkel's page, attacked: spokesman (Reuters)
- Venezuela Partners Said Seeking Crude Payments as Arrears Mount (BBG)
- Boehner Takes His Revenge on Republicans for Voting Against Him for Speaker (BBG)
Overnight Media Digest
WSJ
* Yields on government bonds in the United States, Germany and Japan plunged Tuesday as anxiety over global growth intensified and investors sought havens from widening financial-market turmoil. (http://on.wsj.com/1DfKCVn)
* House Republicans re-elected John Boehner for a third term as House speaker on Tuesday over the objections of a band of frustrated conservatives lobbying for a new leader. (http://on.wsj.com/1ADlXYt)
* American oil and gas companies have gone heavily into debt during the energy boom. Their need to service that debt helps explain why U.S. producers plan to keep pumping oil even as crude prices fall. (http://on.wsj.com/1xD1PVJ)
* Mercedes-Benz USA confirmed it is moving its headquarters to the Atlanta area from New Jersey to locate executives closer to its U.S. auto assembly plant in neighboring Alabama. (http://on.wsj.com/17hKM1t)
* Audio-equipment maker Monster LLC and its chief executive sued Apple Inc's Beats Electronics LLC, its co-founders Jimmy Iovine and Dr.Dre, and Taiwanese smartphone maker HTC Corp for allegedly conspiring to dupe Monster out of a deal with Beats before the company was sold to Apple for $3.2 billion last year. (http://on.wsj.com/1xDmhWa)
FT
Britain's Finance Minister George Osborne has quashed Home Secretary Theresa May's plan to send home international students after they graduate, amid warnings that the move would damage British universities and business.
Lord King, the former governor of the Bank of England, kept the governing body of the central bank in the dark on serious internal dissent, denied non-executive directors information about financial stability and fell out with them over alleged leaks, according to Bank of England meeting minutes during the financial crisis.
German Chancellor Angela Merkel will join British Prime Minister David Cameron on Wednesday in calling for reforms to the EU. But the chancellor will urge the prime minister not to push her too far in his demands for a renegotiation of bloc treaties.
The most recent set of accounts filed by Tony Blair on behalf of his Tony Blair Associates sprawling network of business entities shows that profits have fallen at the former prime minister's corporate empire.
NYT
* Coach Inc, the New York-based luxury fashion house, said on Tuesday that it would buy Stuart Weitzman, the maker of midrange luxury shoes, for up to $574 million in cash. Coach also said it would retain Weitzman, the company's 72-year-old executive chairman and creative director, to lead the team whose styles have been in high demand on red carpets and in stores. (http://nyti.ms/1xQuZlK)
* On Tuesday, Intel Corp said the company's work force would better reflect the available talent pool of women and underrepresented minority groups in the United States within five years. If successful, the plan would increase the population of women, blacks, Hispanics and other groups at Intel by at least 14 percent during that period, the company said. (http://nyti.ms/1wnXEbV)
* The White House on Tuesday made it clear that President Barack Obama would veto a bill authorizing construction of the Keystone XL oil pipeline, setting up an immediate clash with Republicans just as they assume control of Congress. For nearly four years, the Keystone pipeline has been a symbolic flash point in the political war between Republicans and Democrats over energy, climate change and jobs. (http://nyti.ms/14tLRBX)
* The U.S. House of Representatives on Tuesday approved an obscure but significant rule change requiring the economic effects of legislation to be included in a bill's official cost to the Treasury. The change on "dynamic scoring" could ease passage of major tax cuts by showing that their impact on economic growth would substantially reduce their cost to the Treasury. (http://nyti.ms/1w0UOsh)
* In the latest blow to New Jersey, which is still staggering from the recession, Mercedes-Benz USA said on Tuesday that it would move its headquarters to Georgia from Montvale. The German automaker, which is the second-largest corporate employer in Montvale, said the move, scheduled to begin in July, would affect about 1,000 jobs. (http://nyti.ms/14tN5xh)
Canada
THE GLOBE AND MAIL
** U.S. President Barack Obama will veto Republican attempts to seize control of the Keystone XL decision, the White House said Tuesday as a showdown loomed over the long-delayed scheme to funnel Canadian oil-sands crude across the United States to the Texas Gulf Coast. (http://bit.ly/1tH9VHt)
** Alberta oil producers are poised to pump more crude into a North American market already brimming with U.S. shale supplies and booming oil sands output, deepening a glut that has sent prices into a tailspin and hammered energy shares across the board. (http://bit.ly/1xDIpzT)
** More senior executives at Tim Hortons Inc have left the company as its new owner takes over following its $12.5 billion acquisition of the Canadian coffee and donut chain. (http://bit.ly/1s4mr8n)
NATIONAL POST
** Toronto police Chief Blair has ordered the rank and file to suspend "until further notice" the controversial practice of carding - the practice of documenting non-criminal interactions with the public. The top cop's spokesman confirmed that Chief Blair issued the "routine order" on Jan. 1, but said he would not comment until February on why a practice he once defended should suddenly cease. (http://bit.ly/1IpfO2P)
** Canadian employers are predicting increased growth, but not necessarily more jobs. An annual survey released Tuesday by recruiting company Hays Canada says 70 percent of Canadian employers and companies expect to grow their business in 2015. By comparison only 38 percent of companies expect to add full-time employees. (http://bit.ly/1xQP7RA)
Britain
The Times
Renewed fears of an economic slump in continental Europe sparked an investor scramble for safe-haven assets yesterday that left returns on a string of benchmark government bonds plumbing record lows. (http://thetim.es/1KjEzB3)
Asda and J Sainsbury Plc have fired new-year salvos in the latest supermarket wars by investing a combined 450 million pounds ($680.67 million) in price cuts to basics such as bread, sausages, ketchup and orange juice. (http://thetim.es/14jYD5w)
The Guardian
George Osborne sought to fend off a political onslaught from Labour over tumbling oil prices by insisting big British companies should pass on the benefits to their customers. (http://bit.ly/1w0TiGw)
The administrators of the collapsed parcel carrier City Link have started selling off the company's assets. And the rival firm DX (Group) Plc has paid just over 1 million pounds for some of its equipment and intellectual property. (http://bit.ly/1Aof8eA)
The Telegraph
Sterling has slumped to a 17-month low against the dollar after a closely-watched economic survey suggested growth in the UK slowed to just 0.5 percent in the final quarter of the year. (http://bit.ly/1wSO0wX)
Four thousand Britons a week are lodging complaints about mis-sold payment protection insurance (PPI), leaving the financial ombudsman with several more years of wading through disputes, at a cost of hundreds of millions of pounds. (http://bit.ly/1wSO7IX)
Sky News
The executive in charge of Barclays' non-core unit is to retire after 17 years at the UK lender, Sky News understands. (http://bit.ly/1tMR2Zj)
A major Chinese food group is to swallow a 40 percent stake in Weetabix, giving it full control of the cereal maker. (http://bit.ly/1wSOxyR)
The Independent
Bitcoin has been dealt another blow after a major European bitcoin exchange admitted it was targeted by hackers, who stole £3.4 million worth of the cryptocurrency. (http://ind.pn/1BFnNXk)
Rangers International Football Club Plc has rejected a more than 18 million pounds takeover bid from Robert Sarver - but said they would welcome financial support from the businessman with funds likely to run out before the end of this month. (http://ind.pn/1wiSaPA)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
ADP employment report for December at 8:15--consensus 235K
International trade balance for November at 8:30--consensus deficit $41.5B
DOE petroleum status report for week of Jan. 2 at 10:30
FOMC Minutes to be released at 14:00
ANALYST RESEARCH
Upgrades
American Eagle (AEO) upgraded to Market Perform from Underperform at Cowen
American Express (AXP) upgraded to Buy from Neutral at Goldman
Autohome (ATHM) upgraded to Neutral from Underperform at Credit Suisse
Cheesecake Factory (CAKE) upgraded to Neutral from Underperform at BofA/Merrill
Cigna (CI) upgraded to Buy from Neutral at Goldman
City National (CYN) upgraded to Overweight from Neutral at JPMorgan
Ferrellgas Partners upgraded to Neutral from Sell at UBS
First Solar (FSLR) upgraded to Neutral from Sell at Goldman
Garmin (GRMN) upgraded to Equal Weight from Underweight at Morgan Stanley
Invesco (IVZ) upgraded to Buy from Neutral at Sterne Agee
Janus Capital (JNS) upgraded to Overweight from Underweight at JPMorgan
ManTech (MANT) upgraded to Sector Perform from Underperform at RBC Capital
Manhattan Associates (MANH) upgraded to Strong Buy from Outperform at Raymond James
Pattern Energy (PEGI) upgraded to Buy from Hold at Desjardins
PrivateBancorp (PVTB) upgraded to Overweight from Neutral at JPMorgan
Progressive (PGR) upgraded to Buy from Neutral at Janney Capital
QIAGEN (QGEN) upgraded to Overweight from Equal Weight at Barclays
Sonic (SONC) upgraded to Market Perform from Underperform at Telsey Advisory
Willis Group (WSH) upgraded to Buy from Hold at Evercore ISI
Downgrades
ADP (ADP) downgraded to Neutral from Outperform at Credit Suisse
Aon plc (AON) downgraded to Hold from Buy at Evercore ISI
Baltic Trading (BALT) downgraded to Hold from Buy at Canaccord
Fossil (FOSL) downgraded to Underperform from Neutral at BofA/Merrill
General Dynamics (GD) downgraded to Sector Perform from Outperform at RBC Capital
Horace Mann (HMN) downgraded to Neutral from Buy at Janney Capital
Host Hotels (HST) downgraded to Neutral from Overweight at JPMorgan
Informatica (INFA) downgraded to Sector Perform from Outperform at RBC Capital
Intrawest Resorts (SNOW) downgraded to Neutral from Buy at Goldman
Joy Global (JOY) downgraded to Hold from Buy at KeyBanc
KaloBios (KBIO) downgraded to Market Perform from Outperform at JMP Securities
Kennametal (KMT) downgraded to Hold from Buy at KeyBanc
LINN Energy (LINE) downgraded to Equal Weight from Overweight at Barclays
LVMH (LVMUY) downgraded to Hold from Buy at Deutsche Bank
Medidata (MDSO) downgraded to Neutral from Buy at SunTrust
Paragon Shipping (PRGN) downgraded to Hold from Buy at Canaccord
SINA (SINA) downgraded to Sector Perform from Outperform at Pacific Crest
Sanofi (SNY) downgraded to Sell from Neutral at Citigroup
TJX (TJX) downgraded to Market Perform from Outperform at Telsey Advisory
Terex (TEX) downgraded to Hold from Buy at KeyBanc
Torchmark (TMK) downgraded to Hold from Buy at Deutsche Bank
UnitedHealth (UNH) downgraded to Neutral from Buy at Goldman
Initiations
Agilent (A) initiated with an Equal Weight at Barclays
Amira Nature Foods (ANFI) initiated with an Outperform at Oppenheimer
Ascena Retail (ASNA) initiated with a Market Perform at Cowen
Cabot Oil & Gas (COG) initiated with an Outperform at Imperial Capital
Cabot Oil & Gas (COG) initiated with an Outperform at Imperial Capital
Digimarc (DMRC) initiated with a Buy at B. Riley
Eagle Point Credit (ECC) initiated with a Buy at Wunderlich
Enphase Energy (ENPH) initiated with a Sell at Goldman
Globus Medical (GMED) assumed with an Overweight at Piper Jaffray
Hologic (HOLX) initiated with an Underweight at Barclays
Illumina (ILMN) initiated with an Equal Weight at Barclays
K2M Group (KTWO) assumed with an Overweight at Piper Jaffray
LDR Holding (LDRH) assumed with an Overweight at Piper Jaffray
Media General (MEG) initiated with an Outperform at RBC Capital
Myriad Genetics (MYGN) initiated with an Overweight at Barclays
Nordstrom (JWN) initiated with an Outperform at Cowen
NuVasive (NUVA) assumed with an Overweight at Piper Jaffray
Restaurant Brands (QSR) initiated with a Buy at Goldman
Rockwell Medical (RMTI) initiated with an Outperform at Oppenheimer
Signet Jewelers (SIG) initiated with an Outperform at Cowen
StoneCastle (BANX) initiated with a Buy at Wunderlich
Synchrony Financial (SYF) initiated with a Buy at Evercore ISI
Thermo Fisher (TMO) initiated with an Overweight at Barclays
Tumi (TUMI) initiated with a Market Perform at Cowen
United Natural Foods (UNFI) initiated with an In-Line at Imperial Capital
United Natural Foods (UNFI) initiated with an In-Line at Imperial Capital
Urban Outfitters (URBN) initiated with a Market Perform at Cowen
Vera Bradley (VRA) initiated with a Market Perform at Cowen
Workday (WDAY) initiated with a Neutral at Sterne Agee
COMPANY NEWS
J.C. Penney (JCP) reported Nov.-Dec. SSS up 3.7%, forecast Q4 SSS at upper end of guidance range of up 2%-4%
General Motors (GM) said Opel/Vauxhall sold almost 1.1M vehicles in 2014
WhatsApp (FB) CEO Jan Koum announced that WhatsApp has more than 700M monthly active users
KaloBios (KBIO) reported that KB001-A study did not meet primary endpoint
Yelp (YELP) said FTC closes investigation, will take no action
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Greenbrier (GBX), Team (TISI), A. Schulman (SHLM), Micron (MU)
Companies that missed consensus earnings expectations include:
A. Schulman (SHLM)
Companies that matched consensus earnings expectations include:
Landec (LNDC)
Micron (MU) sees Q2 revenue $4.1B-$4.3B, consensus $4.53B
LiqTech (LIQT) lowers Q4 revenue view to $2.2M-$2.7M, consensus $6.80M
Greenbrier (GBX) raises FY15 EPS view to $5.20-$5.50 from $4.25-$4.55, consensus $4.47
The Medicines Co. (MDCO) sees FY14 revenue at lower end of $720M-$735M
A. Schulman (SHLM) backs FY15 EPS view of $2.60-$2.65, consensus $2.61
NEWSPAPERS/WEBSITES
3G discussing possible PepsiCo (PEP), Campbell Soup (CPB) acquisitions, WSJ reports
Apple (AAPL) could ship first Apple Watch in the U.S. in March, 9to5Mac reports
Apple's (AAPL) Beats Electronics sued over headphones, Reuters says
Dr Pepper Snapple (DPS), Keurig (GMCR) sign deal for cold-drink machine, WSJ reports
Sony's (SNE) 'The Interview' has 4.3M online transactions for $31M in sales, CNBC reports
Barclays' (BCS) 'bad bank' head to retire later this year, Sky News reports
SYNDICATE
Cedar Realty Trust (CDR) files to sell 5M shares of common stock
Five Prime (FPRX) 3.41M share Spot Secondary priced at $22.00
Karyopharm (KPTI) 3M share Secondary priced at $33.00
OvaScience (OVAS) files to sell $85M in common stock
Resource Capital (RSO) files to sell $100M in convertible notes due 2020
Synageva (GEVA) 3M share Secondary priced at $94.19
The Medicines Co. (MDCO) files to sell $300M in convertible notes due 2022