- Oil Drops Below $45; U.S. Stockpiles May Speed Collapse (BBG)
- Pound Drops as Traders Write Off Higher Rates on Inflation Slump (BBG)
- Oil prices down again as UAE defends holding production (Reuters)
- The Politics Behind the ECB's Threat to Cut Greece Funding (BBG)
- France dispatched thousands of police and military personnel to protect synagogues and Jewish schools, as the government warned of continued terror threats after three days of deadly violence (WSJ)
- Chinese Car Dealers Find Days of ‘Printing Money’ Ending (BBG)
- Gold Rises to Highest Since October as U.S. Rate Outlook Weighed (BBG)
- Divers retrieve crashed AirAsia jet's cockpit voice recorder (Reuters)
- Ruble Rout Exposes India’s Steelmakers to Russia Threat (BBG)
- Gross Says Pimco Fired Him After Offer to Scale Back Role (BBG)
- Credit Counselor Has Ties to High-Interest Lenders (WSJ)
- Police Drones Over Berkeley Trigger Backlash (BBG)
Fly On The Wall Pre-Market Buzz
WSJ
* France dispatched thousands of police and military personnel to protect synagogues and Jewish schools, as the government warned of continued terror threats after three days of deadly violence. (http://on.wsj.com/1Cbqgcb)
* Howard Dvorkin, a prominent consumer adviser on debt relief, has financial links to firms such as payday lenders that often drive people deeper into debt. (http://on.wsj.com/1Ioc9nw)
* Hackers claiming to be aligned with the Islamic State extremist group took control of the U.S. Central Command's primary Twitter and YouTube accounts Monday, posting office phone numbers of top military officers and what they said were confidential military documents. (http://on.wsj.com/1ATRtmv)
* The chief executive of Dollar Tree Inc, Bob Sasser, warned his counterpart at Family Dollar that he won't accept any further delays of a shareholder vote on the companies $8.5 billion deal. A vote on the acquisition, which has been approved by Family Dollar's board, has been delayed twice as the discount chain's shareholders consider the prospect of a better offer in light of a rival takeover approach from Dollar General. (http://on.wsj.com/1xjbZFE)
* Amid signs of a tightening labor market, Aetna Inc plans to boost the incomes of its lowest-paid workers by as much as a third in a bid to draw top prospects and reduce turnover. The move by the big health insurer highlights larger debates over the pace of the economic recovery and the compensation of people toward the bottom of the wage scale. (http://on.wsj.com/1AKwy2G)
FT
Britain's ministers are expected to terminate an industrial consortium of a lucrative management contract to clean up Sellafield, western Europe's largest nuclear waste site, in an unexpected blow to its members.
British Prime Minster David Cameron suggested intelligence chiefs should be granted sweeping new powers in the wake of last week's attacks in Paris, reigniting the debate about access to individuals' communications by intelligence chiefs.
Findings by Network Rail suggest that the failures by private contractors were among the key reasons for the UK's Christmas travel chaos, reopening the row over the fragmented management of Britain's railways.
Several cancer medicines will not be available to new patients through the Britain's state-funded National Health Service starting in March as authorities battle to control the cost of treatment.
NYT
* The stock exchange operator BATS Global Markets has agreed to pay $14 million to settle accusations by the Securities and Exchange Commission concerning two exchanges it acquired through its merger with Direct Edge last year. (http://nyti.ms/1y6aGRo)
* Almost a month after Family Dollar Stores Inc postponed a shareholder vote on its planned $8.5 billion merger with Dollar Tree Inc, the company is making a direct pitch to investors to try to win support for the deal. (http://nyti.ms/1y7tWMP)
* The AmerisourceBergen Corp, a drug distributor, agreed on Monday to buy MWI Veterinary Supply Inc for about $2.5 billion in cash, expanding into the animal health business. (http://nyti.ms/17CqsI5)
* Shareholders of Portugal Telecom agreed on Monday to postpone a vote on whether to sell assets valued at $8.7 billion to Altice, the European cable and mobile service provider. (http://nyti.ms/1xWhP4S)
* The board of the owner of the Canary Wharf office-and-retail development said on Monday that shareholders should reject a hostile bid for the company made by Qatar's sovereign wealth fund and Brookfield Property Partners LP . (http://nyti.ms/1IFLAZw)
* The Irish government said on Monday it had hired Goldman Sachs to advise it on potential capital restructuring at Allied Irish Banks, the first step ahead of any sale of a portion of its stake in the lender, which was nationalized in 2010. (http://nyti.ms/1u1ww1p)
* EMC Corp said on Monday that Jose Almeida, the chairman and chief executive of the medical device maker Covidien, and Donald Carty, a former vice chairman and chief financial officer of Dell Inc, had been appointed to its board. Together, the two will expand the board to 13 members. (http://nyti.ms/1u17Dsk)
* Doral Financial Corp, the troubled Puerto Rico bank with offices that were raided by the FBI last month, has run afoul with banking regulators over its plans to restore its depleted capital levels. (http://nyti.ms/1ssVOdy)
Canada
THE GLOBE AND MAIL
** Federal liberals and new democrats are bracing to be heavily outspent on the ground by the governing conservatives in this year's election. All three leading parties can be expected to spend their national limit of more than C$20 million during the official campaign period scheduled for next fall. (http://bit.ly/1u2bzU4)
** The Keystone XL pipeline passed a major procedural hurdle in the United States Senate, receiving enough votes on Monday to override a filibuster for the first time in the years-long dispute. The chamber agreed to move forward with debate on a bill that would force U.S. President Barack Obama to approve the controversial Canadian oil infrastructure. (http://bit.ly/1AaE97Q)
** Industry efforts to cut back on drilling operations and future projects have failed to stem oil's slide, as prospects of a growing glut in the short term continue to drive down global crude prices. (http://bit.ly/1stEhlu)
NATIONAL POST
** A major Canadian medical body is urging Health Canada to approve an abortion pill that would allow a woman to end a pregnancy at home. Health Canada is expected to decide this month whether to approve mifepristone. The drug has been under review since 2012. The normal review process is a maximum of 300 days. (http://bit.ly/14T2erv)
** Conservative members of Parliament have topped the list of those with the best attendance for votes in the House of Commons in 2014, while some Independent and former Bloc Quebecois MPs were absent the most. (http://bit.ly/1DT0Ktj)
** Goldcorp Inc expects to record a massive writedown of up to $2.7 billion on its new Cerro Negro mine in Argentina due to ongoing political and economic challenges in that country. (http://bit.ly/14PvNLf)
China
CHINA SECURITIES JOURNAL
- China's Small and Medium Enterprises Development Index (SMEDI) fell three percentage points to 92.8, the China Association of Small and Medium Enterprises said.
- China Association of Automobile Manufactures said it expects China's car sales to hit 25.13 million in 2015, of which 860,000 will be exported cars.
CHINA BUSINESS NEWS
- CITIC Securities Co said it will raise all staff salaries by 30 percent.
CHINA DAILY
- The anti-corruption drive will make China's Communist Party clean and tidy, said an editorial in the official paper, adding that those who criticize the effort for involving too many officials or blackening the party's image are siding with the corrupt civil servants.
Britain
The Times
Oil prices fell below $48 a barrel to a five-and-a-half-year low after Goldman Sachs Group Inc cut its forecasts for this year, wiping billions of pounds off the value of London-listed oil companies. (http://thetim.es/1FNe5bm)
Robert Sarver, the American basketball team owner, has ended his surprise attempt to take control of Rangers International Football Club Plc after his second offer of 20 million pounds ($30.34 million) was again rejected by the Ibrox board. (http://thetim.es/1AQrzA4)
The Guardian
Pressure was mounting on the chief executive of Marks and Spencer Group Plc, Marc Bolland, as investors assessed the retailer's decline in sales over the crucial Christmas period. (http://bit.ly/1FNeXwR)
Some key home loan rates have fallen to the lowest levels as lenders battle for business and amid expectations that interest rates are not going to rise soon, according to Michael Saunders, a leading economist. (http://bit.ly/1BesbP4)
The Telegraph
The European Central Bank will be forced to boost its balance sheet to 4.5 trillion euros ($5.32 trillion) in a colossal monetary blitz to prevent deflation engulfing the eurozone, economists at RBS have warned. (http://bit.ly/1xVXIDZ)
Nuclear waste clean-up operations at Sellafield are expected to return to state control, as the private consortium managing the Cumbrian site is stripped of its 20 billion-pound contract. (http://bit.ly/14Nf4If)
Sky News
An investment arm of the taxpayer-backed Lloyds Banking Group Plc will take control of Birmingham's National Exhibition Centre Ltd this week as its local authority owner raises cash to fund a 1 billion pound-plus equal pay bill. (http://bit.ly/1CasHvu)
Shire Plc, the UK-listed pharmaceuticals firm, has bought a U.S. rival for 5.2 billion pounds in order to grow its business, particularly in the treatment of rare diseases. (http://bit.ly/1DRk1LP)
The Independent
Jaguar Land Rover is creating 1,300 new jobs in a move that has been hailed by the government as a "ringing endorsement" of the UK's car industry. (http://ind.pn/1yafbY1)
North Sea oil and gas explorers predicted that Chancellor George Osborne would offer them drastic tax cuts as they consider mass job cuts due to plummeting global prices. (http://ind.pn/14KKfEf)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
NFIB small business optimism index for December at 7:30--consensus 98.5
JOLTS job openings for November at 10:00--consensus 4.875M
Treasury budget for December at 14:00--consensus $3.0B
ANALYST RESEARCH
Upgrades
Alaska Air (ALK) upgraded to Hold from Sell at Deutsche Bank
Amazon.com (AMZN) upgraded to Buy from Neutral at Citigroup
Apple (AAPL) upgraded to Outperform from Neutral at Credit Suisse
Best Buy (BBY) upgraded to Buy from Neutral at Goldman
Comerica (CMA) upgraded to Neutral from Underperform at RW Baird
E-Trade (ETFC) upgraded to Buy from Neutral at BofA/Merrill
Evercore Partners (EVR) upgraded to Buy from Neutral at Goldman
Great Plains Energy (GXP) upgraded to Buy from Neutral at Goldman
Legg Mason (LM) upgraded to Buy from Neutral at BofA/Merrill
Methanex (MEOH) upgraded to Sector Performer from Underperformer at CIBC
NextEra Energy Partners (NEP) upgraded to Buy from Neutral at Goldman
PSEG (PEG) upgraded to Neutral from Sell at Goldman
Qorvo (QRVO) upgraded to Outperform from Market Perform at BMO Capital
Radware (RDWR) upgraded to Outperform from Sector Perform at RBC Capital
SAP (SAP) upgraded to Outperform from Market Perform at JMP Securities
Sky (SKYAY) upgraded to Outperform from Market Perform at Bernstein
Skyworks (SWKS) upgraded to Outperform from Market Perform at BMO Capital
Sonic (SONC) upgraded to Overweight from Neutral at Piper Jaffray
Stifel Financial (SF) upgraded to Neutral from Sell at Goldman
SunPower (SPWR) upgraded to Outperform from Neutral at Credit Suisse
Tilly's (TLYS) upgraded to Buy from Neutral at B. Riley
Downgrades
Abbott (ABT) downgraded to Hold from Buy at Jefferies
Banc of California (BANC) downgraded to Neutral from Buy at BofA/Merrill
CBOE Holdings (CBOE) downgraded to Sell from Neutral at Goldman
ChannelAdvisor (ECOM) downgraded to Hold from Buy at Deutsche Bank
ChannelAdvisor (ECOM) downgraded to Hold from Buy at Stifel
ChannelAdvisor (ECOM) downgraded to Market Perform from Outperform at Raymond James
ChannelAdvisor (ECOM) downgraded to Neutral from Buy at Janney Capital
ChannelAdvisor (ECOM) downgraded to Neutral from Outperform at RW Baird
ChannelAdvisor (ECOM) downgraded to Sector Perform from Outperform at Pacific Crest
Costco (COST) downgraded to Neutral from Buy at Goldman
Danone (DANOY) downgraded to Neutral from Buy at Nomura
EverBank (EVER) downgraded to Sell from Neutral at Goldman
First Republic Bank (FRC) downgraded to Neutral from Buy at Goldman
FirstEnergy (FE) downgraded to Sell from Neutral at Goldman
Franklin Resources (BEN) downgraded to Neutral from Buy at BofA/Merrill
Greenhill & Co. (GHL) downgraded to Sell from Neutral at Goldman
HP (HPQ) downgraded to Sector Perform from Outperform at Pacific Crest
Kinder Morgan (KMI) resumed with a Neutral from Buy at Citigroup
Landstar System (LSTR) downgraded to Hold from Buy at KeyBanc
MWI Veterinary Supply (MWIV) downgraded to Neutral from Overweight at Piper Jaffray
Moelis (MC) downgraded to Neutral from Buy at Goldman
Monster Beverage (MNST) downgraded to Market Perform from Outperform at Wells Fargo
Mosaic (MOS) downgraded to Underperformer from Sector Performer at CIBC
NPS Pharmaceuticals (NPSP) downgraded to Equal Weight from Overweight at Barclays
NRG Energy (NRG) downgraded to Neutral from Buy at Goldman
National Health downgraded to Market Perform from Outperform at JMP Securities
NetApp (NTAP) downgraded to Sector Perform from Outperform at Pacific Crest
O'Reilly Automotive (ORLY) downgraded to Sell from Neutral at Goldman
Popeyes (PLKI) downgraded to Neutral from Overweight at Piper Jaffray
Sabra Health downgraded to Underperform from Market Perform at JMP Securities
Smith & Nephew (SNN) downgraded to Neutral from Buy at UBS
Walgreens Boots Alliance (WBA) downgraded to Hold from Buy at Jefferies
Yamana Gold (AUY) downgraded to Neutral from Overweight at HSBC
Initiations
Ameriprise (AMP) initiated with a Buy at Deutsche Bank
Axalta Coating (AXTA) initiated with an Outperform at RW Baird
Bellicum Pharmaceuticals (BLCM) initiated with a Buy at Citigroup
Bonanza Creek (BCEI) initiated with a Hold at Deutsche Bank
Core-Mark (CORE) initiated with a Buy at Jefferies
Dick's Sporting (DKS) initiated with an In-Line at Imperial Capital
Dynegy (DYN) reinstated with an Overweight at Barclays
Gannett (GCI) initiated with an Outperform at Wells Fargo
Gran Tierra (GTE) initiated with an Outperformer at CIBC
HomeAway (AWAY) initiated with an Outperform at RBC Capital
Juno Therapeutics (JUNO) initiated with a Neutral at Goldman
MakeMyTrip (MMYT) initiated with a Buy at BofA/Merrill
PDC Energy (PDCE) initiated with a Hold at Deutsche Bank
PNC Financial (PNC) initiated with a Hold at Evercore ISI
Proofpoint (PFPT) initiated with a Buy at Summit Research
Qorvo (QRVO) resumed with a Perform at Oppenheimer
Sensata (ST) initiated with a Buy at Stifel
U.S. Bancorp (USB) initiated with a Hold at Evercore ISI
United Financial (UBNK) initiated with a Sector Perform at RBC Capital
Wells Fargo (WFC) initiated with a Hold at Evercore ISI
COMPANY NEWS
Gartner said worldwide PC shipments in Q4 grew 1% (LNVGY, HPQ, AAPL)
Alcoa (AA) sees 2015 global aluminum demand growth of 7%, sees 2015 global aerospace sales to increase 9%-10% over 2014
The Fresh Market (TFM) CEO Craig Carlock resigns, COO Sean Crane to succeed
Goldcorp (GG) sees Q4 charge of $2.3B-$2.7B on Cerro Negro assets
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Alcoa (AA), IHS Inc. (IHS), SYNNEX (SNX)
IHS Inc. (IHS) sees FY15 adjusted EPS $6.10-$6.30, consensus $6.39
Wolverine World Wide (WWW) sees Q4 revenue about $808M, consensus $790.15M, sees FY15 EPS flat vs. FY14
bebe stores (BEBE) sees Q2 EPS now expected to be in the low single digit range
The Fresh Market (TFM) reaffirms FY14 EPS $1.56-$1.64, consensus $1.58
Tilly's (TLYS) raises Q4 EPS outlook to 21c-23c from 15c-19c
Big 5 Sporting (BGFV) sees Q4 EPS 14c-16c, consensus 21c, sees FY14 EPS 68c-70c, consensus 77c
NEWSPAPERS/WEBSITES
DuPont (DD) to sell Theater business after proxy fight with Trian, WSJ says
RadioShack (RSH) gets $500M loan offer from Salus Capital, WSJ reports
HSBC (HSBC) to be criticized for efforts to battle money laundering, WSJ reports
Authorities seeking more than $1B to settle S&P charges, NY Times says (MHFI)
Citi (C) to cut consumer banking business, Reuters reports
Coca-Cola (KO) shares look expensive, Barron's says
Akamai (AKAM) prospects are 'stronger than ever,' Barron's says
SYNDICATE
AdCare (ADK) files $100M mixed securities shelf, 313K shares for holders
Aimco (AIV) files to sell 8.2M shares of common stock
Bluerock Residential (BRG) files to sell 4M shares of common stock
Brixmor (BRX) offers 17.5M shares of common stock for holders
Burlington Stores (BURL) files to sell 12.5M shares for holders
Franklin Street (FSP) files automatic mixed securities shelf
Hudson Pacific (HPP) files to sell 9.5M shares of common stock
Paratek Pharmaceuticals (PRTK) files to sell $200M of common stock