What bread... What circuses... JPMorgan Chase Faces Full-Court Press of Federal Investigations (NYT) European Regulators to Charge Banks Over Derivatives (WSJ) ... but forgive us if we don't hold our breath Cyprus readies capital controls to avert bank run (Reuters) Cyprus Capital Controls First in EU Could Last Years (BBG) Damage ripples through Cypriot economy (FT) G4S readies guards as Cypriot banks prepare to open (Reuters) Global pool of triple A status shrinks 60% (FT) Customers Flee Wal-Mart Empty Shelves for Target, Costco (BBG) BOE Says U.K. Banks Have Capital Shortfall of $38 Billion (BBG) U.K. Banks Facing Capital Shortfall (WSJ) Berkshire to Pay Nothing to Be Among Top Goldman Sachs Holders (BBG) Cyprus Details Bank Revamp (WSJ) Kazumasa Iwata Joins Kuroda Naysayers as BOJ to Meet (BBG) BRICS Nations Need More Time for New Bank, Russia Says (BBG) Foxconn Plant in Peanut Field Shows Labor Eroding China Edge (BBG) Overnight Media Digest WSJ * Leave it to Warren Buffett to find a way to get hold of 10 million Goldman Sachs Group Inc shares without handing over a penny. The billionaire chief executive of Berkshire Hathaway Inc accepted the stake in exchange for giving up his company's right to purchase a larger number of Goldman shares at a below-market price, according to terms of the deal announced on Tuesday. * Barrick Gold Corp co-chairman Peter Munk signaled he is looking to pass the scepter at the gold-mining giant he founded about 30 years ago. His call comes amid a shake-up in the top ranks of the mining industry, where a raft of high-profile leaders have stepped down, or been replaced, amid shareholder revolts over overpriced acquisitions and generally poor share-price performance. * CBS Corp acquired half of TV Guide Network and will enter a 50-50 partnership with Lions Gate Entertainment Corp for the entertainment channel and website. * DuPont Co agreed to pay Monsanto Co $1.75 billion as part of a series of licensing agreements for genetically modified seed technology that spell a truce in the rivals' bitter patent disputes. * Large global banks' legal tab is poised to soar beyond $100 billion as investors, insurers and municipalities pursue damages for actions tied to the mortgage meltdown, the financial crisis and the rate-rigging scandal. * Facebook Inc Chief Executive Mark Zuckerberg is in the process of co-organizing a political advocacy group made up of top technology leaders that would push federal legislative reform on issues ranging from immigration to education, said people familiar with the development. * Honda Motor Co Ltd expects its U.S. new-car sales to increase by 8 percent in March over a year ago, led by a surge in demand for its redesigned Accord sedan, a senior executive said on Tuesday. * Health-care companies are circling around the $7 billion market for injectable drugs that are widely used by hospitals to treat conditions from cancer to pain - but which have often been in short supply. * A highly productive informant has led U.S. federal prosecutors to another group of alleged insider traders, one that includes a hedge-fund analyst and the investment chief for Wyoming's retirement system. * Mediaset SpA, Italy's largest private broadcaster, posted its first net loss since going public in 1996, as the company's slow response to new competition and a plummeting ad market in Italy takes its toll. FT Start-up banks in Britain will not need as much capital as their established rivals starting from April, Britain's Financial Services Authority (FSA) said. The Federal Reserve has ordered Citigroup Inc to better police for the risk of money laundering. Warren Buffett agreed to become Goldman Sachs Group Inc's biggest shareholders by converting his warrants into shares. Deutsche Bank has provisioned for 500 million euros to cover possible fines for the alleged manipulation of Libor interest rates. Britain's Kingfisher Plc reported sharply lower profits as cash-strapped consumers cut back on home improvements in the economic downturn. T-Mobile USA will eliminate device subsidies and two-year service contracts that are favoured in the mobile industry to sell expensive handsets. NYT * In a previously undisclosed case, prosecutors are examining whether JPMorgan Chase & Co failed to fully alert authorities to suspicions about Bernard Madoff, according to several people with direct knowledge of the matter. * With time running out until Cyprus's devastated banks must reopen their doors to the public, Cypriot and European officials are scrambling to put in place a set of measures that would allow jittery depositors access to their savings while preventing many billions of euros from fleeing the country. * CBS Corp announced on Tuesday that it had completed a deal to buy a half-interest in TVGN, formerly the TV Guide Network, fulfilling a longstanding goal of adding a general entertainment basic cable network to the company's media portfolio. * American mobile carrier T-Mobile, which has struggled against rivals like AT&T and Verizon, will offer the iPhone 5 cheaper than the competition, and most important, customers would not have to sign a contract. * DuPont Co will pay Monsanto Co at least $1.75 billion over 10 years for the rights to technology for genetically engineered soybeans that are resistant to herbicides. * Gains in housing and manufacturing propelled the U.S. economy over the winter, according to reports released on Tuesday. Home prices rose 8.1 percent in January, the fastest annual rate since the peak of the housing boom in summer 2006. * A squabble between a group fighting spam and a Dutch company that hosts Web sites said to be sending spam has escalated into one of the largest computer attacks on the Internet, causing widespread congestion and jamming crucial infrastructure around the world. Canada THE GLOBE AND MAIL * More than a day after industrial waste water leaked from a Suncor Energy Inc site into the Athabasca River, the oil-sands giant and the province were still trying to determine which, if any, toxic materials were carried into the major Alberta waterway. Reports in the business section: * Suzuki Canada Inc will end its 30-year run of selling vehicles in Canada next year, the final withdrawal of Suzuki Motor Corp from markets it once thought so important that it manufactured vehicles here. * Canadian and South Korean officials are playing down Finance Minister Jim Flaherty's assertion that a free-trade deal between the countries is imminent. Flaherty, who is on a four-day trip to drum up business in Asia, said Monday after a speech in Hong Kong that Canada is "very close" to wrapping up an agreement with South Korea. NATIONAL POST * Canadians continue to pay more to fund a "gold plated" parliamentary pension plan that spending watchdogs say has taxpayers ultimately contributing more than C$25 for every dollar from MPs. The federal government announced last fall it is overhauling the parliamentary pension plan - including tripling MP contributions and increasing retirement age - after the next election. FINANCIAL POST * Target Canada president Tony Fisher addressed Tuesday the sticker shock gripping some consumers who expected the retailer's prices would be on par with its U.S. stores when it opened outlets across the country this month. China CHINA SECURITIES JOURNAL -- Net profits at 793 Shanghai- and Shenzhen-listed companies hit 1.05 trillion yuan ($169.05 billion) in 2012, according to data from Chinese firm Wind Information. -- Poly Real Estate will keep its annual growth at 20 percent over the next seven years, said chairman Song Guangju. Property tightening policies should not change the firm's plans for growth and expansion, he added. SHANGHAI SECURITIES NEWS -- New loans from China's big four banks in March are estimated to have increased against previous months, and new loans from all financial institutions could reach 850 billion yuan ($136.85 billion), according to the official Chinese daily. CHINA DAILY -- A week-long drought in northwest China has hit 4.35 million people in Gansu province. The dry spell, expected to last until the end of April, has left 650,000 people facing water shortage and affected 398,667 hectares of farmland, according to the provincial civil affairs department. PEOPLE'S DAILY -- China will subsidise a total of 170 billion yuan to support grain farmers in 2013, the finance ministry told the official Chinese paper. SHANGHAI DAILY -- Global tech giant Apple is heading to court this afternoon for a pre-hearing related to a patent dispute over the U.S.-based firm's Siri voice-activated software. The pre-hearing will be held at Shanghai's No.1 Intermediate People's Court. -- U.S. retailer Wal-Mart will close three stores in China in May to streamline its sales network. In a statement the firm said it would still continue to invest and open new stores in Shanghai, where it has over 20 currently. Fly On The Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades AOL (AOL) upgraded to Overweight from Equal Weight at BarclaysCapital Product (CPLP) upgraded to Neutral from Underperform at BofA/MerrillCliffs Natural (CLF) upgraded to Neutral from Sell at GoldmanDSW (DSW) upgraded to Buy from Neutral at CitigroupGenomic Health (GHDX) upgraded to Outperform from Market Perform at LeerinkGol Linhas (GOL) upgraded to Outperform from Market Perform at Raymond JamesMattress Firm (MFRM) upgraded to Outperform from Market Perform at Raymond JamesSykes Enterprises (SYKE) upgraded to Outperform from Market Perform at Wells FargoTrulia (TRLA) upgraded to Buy from Hold at Deutsche BankVMware (VMW) upgraded to Strong Buy from Buy at ISI GroupViroPharma (VPHM) upgraded to Overweight from Neutral at JPMorgan Downgrades Charles River Labs (CRL) downgraded to Market Perform from Outperform at Wells FargoCliffs Natural (CLF) downgraded to Underweight from Equal Weight at Morgan StanleyEnphase Energy (ENPH) downgraded to Underperform at Raymond JamesObagi Medical (OMPI) downgraded to Neutral from Buy at Roth CapitalSun Bancorp (SNBC) downgraded to Underperform from Neutral at Sterne AgeeWestern Alliance (WAL) downgraded to Market Perform at Keefe Bruyette Initiations Crimson Exploration (CXPO) initiated with a Hold at CanaccordFifth Street Finance (FSC) initiated with an Overweight at JPMorganMasTec (MTZ) initiated with a Buy at Lazard CapitalVascular Solutions (VASC) initiated with an Overweight at Piper JaffrayWeingarten Realty (WRI) initiated with an Equal Weight at EvercoreWestern Digital (WDC) initiated with an Outperform at RBC Capital HOT STOCKS The BOE says U.K. banks have around GBP25B capital shortfallCBS Corporation (CBS) and Lionsgate (LGF) entered into a 50/50 partnership for TVGN and the website TVGuide.com. The venture will combine CBS's programming, production and marketing assets with Lionsgate's resources in motion pictures, television and digitally delivered contentVenaxis (APPY) announced plans to accelerate European market development for its APPY1 appendicitis testLogMeIn (LOGM) announced that a federal jury in Eastern District of Virginia found that LogMeIn products do not infringe on U.S.Patent No. 6,928,479, as asserted by 01 CommuniqueShah Capital offered to acquire UTStarcom (UTSI) for $3.20 per share EARNINGS/GUIDANCE Companies that beat consensus earnings expectations last night and today include:Anthera Pharmaceuticals (ANTH), SAIC (SAI), Landec (LNDC), Envivio (ENVI) Companies that missed consensus earnings expectations include:Mattress Firm (MFRM), Metabolix (MBLX) NEWSPAPERS/WEBSITES European authorities may soon bring a case against some of the region's big banks alleging collusion in the $27T market for credit derivatives, the Wall Street Journal reports.Ericsson (ERIC) is in talks to buy Microsoft's (MSFT) IPTV business, Reuters reports. Wells Fargo (WFC) said its online banking website was experiencing an unusually high volume of traffic that it believes stems from a denial-of-service cyber attack, reports Reuters. J.C. Penney (JCP) CEO Ron Johnson has reportedly started to raise prices across the company's stores, the New York Post reports. According to sources, the hikes are "significant," with prices returning to previous levels before the "fair and square" initiative. SYNDICATE Access Midstream (ACMP) 9M share Spot Secondary being re-offered at $39.86BioMed Realty (BMR) files to sell 15M shares of common stockFrancesca's (FRAN) files to sell 7.4M shares of common stock for holdersGarrison Capital (GARS) 5.333M share IPO priced at $15.00NV5 Holdings (NVEE) 1.4M share IPO priced at $6.00Towerstream (TWER) files to sell 433,673 shares of common stock for holdersTumi (TUMI) files to sell 10.14M shares of common stock
This is a continuation of a series of article regarding China’s “miracle.” To read the first part, click here. Inflation has been and remains the single largest problem for the Chinese Government’s attempts to mollify the Chinese population. It is the one issue that can truly negate a rise in incomes or other economic growth: if inflation is 10%, a 10% raise doesn’t actually mean you’re better off. Please recall that it was high food inflation that resulted in the general Chinese population joining college students in the infamous Tiananmen Square protests. And today, with nearly 40% of Chinese living off of $2 a day or less, any spike in inflation quickly results in people taking to the streets and protesting. With that in mind, it’s critical to note that the wealth and power Chinese Government officials have accumulated has come primarily from a massive lending bubble at China’s banks… From the beginning of 2009 to the end of June this year, Chinese banks have issued roughly 35 trillion yuan ($5.4 trillion) in new loans, equal to 73 percent of China's GDP in 2011. About two-thirds of these loans were made in 2009 and 2010, as part of Beijing's stimulus package. Unlike deficit-financed stimulus packages in the West, China's colossal stimulus package of 2009 was funded mainly by bank credit (at least 60 percent, to be exact), not government borrowing. http://thediplomat.com/2012/09/10/are-chinese-banks-hiding-the-mother-of-all-debt-bombs/ If you’re looking for the reason China’s economy continues to explode, look no further. To put this data into perspective, the above bank expansion would be the equivalent of US banks lending over $10 trillion into the US economy from 2009 onwards. That is the equivalent of what China has done in the post-2008 Crash period. Mind you, the above statistic is only for China’s official lending numbers (the ones Chinese banks official reveal). Indeed, China’s non-regulated financial system, also called its shadow banking system, has expanded to over $18 TRILLION, more than twice the size of China’s economy. Just last year (2012) the Chinese shadow banking system expanded by $1.3 trillion (that’s the equivalent of 20% of China’s GDP). THIS is where China’s wealth and corruption and alleged economic “recovery” have come from: not real economic growth, but a massive credit fueled debt binge. And as anyone can tell you, there is a major consequence for this kind of financial expansion: INFLATION. Now, the official China data pegs inflation at 2%. This, like China’s GDP, is an absurd measure. If inflation were indeed just 2%, the People’s Republic wouldn’t be facing widespread civil unrest over wages (on average there are 30 strikes or more per month in China). Demands for wage arrears always spike in the weeks before the holiday as migrant workers, especially in construction, clamour for back pay. This year, with the rapid development of social media in China, the extent of the problem became very apparent with one online activist sometimes recording up to 100 protests a day. However, very few of these reports contained sufficient detail to be included on CLB’s strike map. Of the 71 strikes and protests that we did include during the month of January, 38 were in the service sector and 26 were in manufacturing. Of the service sector strikes, 15 involved taxi and bus drivers protesting administrative charges and rampant unlicensed cars. There was also an upsurge in teachers’ strikes last month as middle school teachers protested pay reform measures introduced by local governments. Most of the strikes and protests in factories meanwhile were related demands for pay increases. Continued improvements in the productivity and profitability of the manufacturing sector and indications that consumer prices are rising once again have pushed higher wage demands and also forced regional governments to increase the minimum wage. On 5 February, Guangdong announced it would increase the statutory minimum wage on 1 May to 1,550 yuan per month in the capital Guangzhou, and the following day, Shenzhen announced a 100 yuan increase in its minimum wage to 1,600 yuan per month to go into effect on 1 March. There were two successful strikes for higher pay at Foxconn factories in January; in Jiangxi on 11 January and in Beijing on 22 January. Workers at Jiangxi Foxconn reportedly got a 500 yuan increase in basic pay to 2,200 yuan per month, prompting a strike for higher pay at another Taiwanese-owned electronics plant in the same city of Fengcheng almost immediately. Foxconn later announced that it would broaden the participation of ordinary workers in its enterprise trade union. However, this announcement was prompted by suggestions from the Fair Labor Association following its audit of the company’s Shenzhen and Chengdu facilities and does not seem to be the result of demands from the workers themselves. One definite highlight of last month’s worker activism however was the strikes by sanitation workers in Guangzhou, which gained considerable public support and sympathy and eventually forced the city government to promise an increase in pay of around 400 yuan per month on average. However, this success was dampened somewhat when a few days later the government announced that the minimum wage in the city would be increased anyway. http://www.clb.org.hk/en/content/china-sees-upsurge-worker-protests-prior-lunar-new-year So, let’s lay to rest the assumption that China’s inflation is just 2%. Remember that nearly 40% of China’s population lives off of les than $2 per day. And China’s per capita income as a whole is just $6,200 (roughly $17 per day if you count weekends as working days). A South China Morning Post survey of some commonly bought grocery items found that a 500 gram loaf of bread that sells for HK$8.60 in Hong Kong and the equivalent of HK$9.93 in London, cost the equivalent of HK$13.52 in Beijing. Similarly, a 250 gram bag of Starbucks coffee beans cost HK$80 in Hong Kong and HK$50 in London, but HK$105 in Beijing. Across the board, imported and foreign brand items were often more expensive in Beijing, although locally produced items, such as eggs, were cheaper. Similar comparisons contrasting Beijing, Guangzhou, Shanghai and Shenzhen, with those in New York, London and Hong Kong have increasingly become fodder for debate in recent years . The latest annual cost of living survey by the compensation-consulting firm Mercer found Beijing and Shanghai to be pricier than New York and London. Shanghai was ranked 16th followed by Beijing at 17th, ahead of London (25th) and New York (32nd). http://www.scmp.com/news/china/article/1091651/cost-living-china Ignore the “official” data. The massive expansion of the Chinese banking system has unleashed a much higher cost of living in China. And your average Chinese civilian, struggling to meet these increased costs, is going to be none to please to find that the very banking expansion that was supposed to grant him or her a higher quality of life has: Benefitted corrupt Government officials much more than the Chinese population Resulted in the very same increased cost of living that is eating up his or her paycheck. This is precisely the formula that resulted in the Arab Spring in the Middle East: increased costs of living and a corrupt Government. Could China be heading for a similar development? It sure looks like it. This concludes this article. To help investors avoid some of the biggest pitfalls concerning inflation, we recently published a NEW FREE Special Report titled, The Inflation Secrets Your Broker Won’t Tell You and it outlines three HUGE secrets that 99% of the investment community don’t know about inflation. These include The surprising industry that suffers as prices soar, despite being considered "inflation proof" by many investors... Which investment Warren Buffett loves even more than gold... Why U.S. Treasury Inflation-Protected Securities (or TIPS) don't work — and what investment could be your best alternative. This Report is a $79 value, but we’re giving it away for free to investors today. To pick up your free copy, swing by: http://gainspainscapital.com/the-inflation-secrets-your-broker-wont-tell-you/ Best Regards, Graham Summers PS. We also On that note, feature a FREE report concerning the threat of a European Banking Collapse. It’s called What Europe’s Collapse Means For You and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it. This report is 100% FREE. You can pick up a copy today at: http://gainspainscapital.com/eu-report/
Девятый арбитражный апелляционный суд рассмотрел в понедельник спор между китайской компанией Shenzhen Richeswin Development Co., Ltd. (истец) и банком «Открытие» (ответчик). Как пишет «Коммерсант», спор этот интересен не только тем, что китайская компания, по ее утверждению, в течение нескольких лет не может получить оплату за отгруженный клиенту российского банка товар, но и тем, что корнями уходит в деятельность санированного в кризис 2008 года Банка ВЕФК Александра Гительсона (находится в розыске). Как утверждает в своем иске Shenzhen Richeswin Development, именно Банк ВЕФК еще в 2008 году не исполнил взятые на себя обязательства по аккредитиву. Претензии же к банку «Открытие» обусловлены тем, что он является правопреемником Банка ВЕФК в результате его санации и последующего присоединения к «Открытию». В исковом заявлении (имеется в распоряжении «Коммерсанта») Shenzhen Richeswin Development указала, что с марта по август 2008 года заключила несколько контрактов на поставку тканей с зарегистрированной на Британских Виргинских островах фирмой Formixton Corporation. Способом оплаты товара был выбран аккредитивный расчет, который предполагал открытие покупателем ткани перед каждой отгрузкой товара безотзывного аккредитива в Банке ВЕФК и его последующее исполнение (платеж продавцу) этим же банком после отгрузки товара и отправки в банк оговоренного сторонами комплекта документов. Но, отправив в банк документы об отгрузке товара еще в августе - сентябре 2008 года, платежа китайская сторона в срок не получила. Переписка китайских банков China Merchants Bank и CITIC Bank (выступали в сделке авизующими банками, обеспечивая информационное взаимодействие и удостоверение полномочий сторон сделки) сначала с Банком ВЕФК, а потом и с «Открытием» результата не принесла. Как следует из копий переписки, представители банка в своих ответах ссылались на то, что банк оказался на грани банкротства в результате злоупотреблений бывшего менеджмента. Поэтому прежде чем платить кому-либо что-либо, новые собственники (мажоритарный - «Открытие», миноритарный - Агентство по страхованию вкладов) и топ-менеджмент должны убедиться в том, что обязательства банка действительно существуют и не образовались в результате противоправных действий экс-владельцев и менеджеров Банка ВЕФК. Ничем закончилось и обращение китайской компании в российский суд первой инстанции, предпринятое в 2011 году после безрезультатного внесудебного выяснения этого вопроса. В декабре 2012 года Арбитражный суд Москвы отказал Shenzhen Richeswin Development в удовлетворении исковых требований на сумму более 1 млн долларов. Представленные китайской стороной заверенные распечатки из системы всемирных межбанковских финансовых телекоммуникаций (SWIFT), через которую и осуществлялись все операции (открытие и подтверждение аккредитивов со стороны Банка ВЕФК, а также переписка между банками о неисполнении аккредитивов), суд не счел надлежащими доказательствами. По его мнению, заверения «свифтовок» печатями китайских банков и подписями их должностных лиц недостаточно. Необходимо подтверждение со стороны самой SWIFT либо «РосСВИФТ». В результате в мотивировочной части решения суд практически полностью повторил доводы «Открытия», настаивающего на том, что истец не доказал открытие Банком ВЕФК аккредитивов и выполнение продавцом всех их условий. В ходе выступления в суде руководства китайской компании и представляющих ее интересы российских юристов в понедельник выяснилось, что ни «РосСВИФТ», ни сама система SWIFT подтвердить подлинность документов не могут. Первая - поскольку не имеет полномочий на это, вторая - так как срок хранения данных о совершении операций в системе ограничен. В подтверждение подлинности документов в понедельник был представлен нотариальный акт об осмотре свифт-сообщений в системе китайских банков. Но вопрос о приобщении к делу новых доказательств суд оставил открытым до следующего заседания, назначенного на 5 марта. В суде находятся аналогичные иски к «Открытию» еще от трех китайских компаний, похожие претензии к банку и Formixton Corporation есть у турецкой компании.
Obama to meet with Goldman's Blankfein, other CEOs Tuesday (Reuters) Chinese Firms Shrug at Rising Debt (WSJ) McGraw-Hill, S&P Sued by U.S. Over Mortgage-Bond Ratings (BBG)... but not Moody's or Fitch Dime a Dozen: Dollar Stores Pinched by Rapid Expansion (WSJ) Dell Board Said to Vote Monday Night on $24 Billion LBO (BBG) BOJ Governor Shirakawa to step down on March 19 (Reuters) Alberta may offer more to smooth way for Keystone (Reuters) Facebook Is Said to Create Mobile Location-Tracking App (BBG) Barclays takes another $1.6 billion hit for mis-selling (Reuters) Apple App Advantage Eroded as Google Narrows IPhone Lead (BBG) Texas School-Finance System Unconstitutional, Judge Rules (BBG) World Risks ‘Perfect Storm’ on Capital Flows, Carstens Says (BBG) Overnight Media Digest WSJ * Michael Dell is close to finishing a risky $23 billion deal to take private the computer company he founded nearly 30 years ago, in an effort to remake Dell Inc for a post-PC era. * The Justice Department in the United States sued Standard & Poor's Ratings Services late Monday, alleging the firm ignored its own standards to rate mortgage bonds that imploded in the financial crisis and cost investors billions. * Investigators remain stumped on the cause of burning batteries aboard two Boeing 787 Dreamliners, fueling pessimism about how quickly the grounded aircraft can resume flying. * British regulators are considering forcing banks to raise billions of pounds in fresh capital to address concerns around a key gauge of their financial health. * Oracle Corp said it will acquire telecommunications gear maker Acme Packet Inc in a deal valued at $1.7 billion, making its biggest move yet into the market for equipment that transports Internet data. * Bridgewater Associates told its investors that it will launch a new hedge fund this year, and had sold another minority equity stake in the firm to an unidentified buyer to help ensure its long-term viability. * The U.S. Securities and Exchange Commission, expanding a high-profile investigation, is gathering data on a broad number of trades by corporate executives in shares of their own companies, according to people familiar with the probe. FT Standard & Poor's is likely to face a lawsuit filed by the U.S. Department of Justice alleging that the credit rating agency defrauded banks by issuing overly rosy ratings for mortgage-related securities in the lead-up to the financial crisis. SGX, the Singapore stock exchange, is in talks to buy a stake in clearing house LCH.Clearnet. The Asian exchange may participate in the London Stock Exchange Group's purchase of LCH or buy a separate stake. Mercuria - one of the world's top five energy traders, has hired Credit Suisse to carry out a strategic stake sale. The Moscow Exchange is set become Europe's largest exchange by market capitalisation after it set a price range for its initial public offering, that values the company at $4 billion to $4.6 billion. BP Plc is likely to face a year or more of uncertainty over the cost of the 2010 Deepwater Horizon disaster as any decision on civil penalties and environmental damages is not expected to come until next year. Former chief executive of Thales - Denis Ranque, has emerged as the front runner to become chairman of European aerospace and defence company EADS, according to two people familiar with the situation. EADS shareholders will meet next month to approve a new board and corporate governance structure at the company. Dutch telecoms group KPN, is finalising plans to raise as much as 4 billion euros in new capital. The company whose stakeholders include Mexican billionaire Carlos Slim, is seeking to raise 2 billion euros to 4 billion euros in the form of a rights issue. NYT * The Justice Department in the United Status filed civil fraud charges late Monday against the nation's largest credit-ratings agency, Standard & Poor's, accusing the firm of inflating the ratings of mortgage investments and setting them up for a crash when the financial crisis struck. * Dell Inc neared an agreement on Monday to sell itself to a group led by its founder and the investment firm Silver Lake for more than $23 billion, people briefed on the matter said, in what would be the biggest buyout since the financial crisis. * China Petroleum and Chemical Corp , the state-owned oil and refining giant better known as Sinopec, is selling new shares worth up to $3.1 billion, in what ranks as one of Asia's biggest equity deals so far this year. * Japan Airlines said that the grounding of its Boeing 787 Dreamliner fleet would cost it 700 million yen, or $7.5 million, in earnings through March and that it would seek compensation from Boeing Co. * British regulators will have the power to split up banks that fail to separate risky trading activity from retail banking, George Osborne, the country's chancellor of the Exchequer, said. * Microsoft Corp, taking aim at the world's fastest-growing smartphone market, said on Monday that it would team up with Huawei of China to sell a low-cost Windows smartphone in Africa. Canada THE GLOBE AND MAIL * Alberta Premier Alison Redford has replaced two of her cabinet ministers, a minor shuffle she says is evidence of her government "leading by example" as it focuses on economic development and looks for savings leading up to next month's budget. * Amid a standoff between buyers and sellers, the number of homes sold in Greater Vancouver fell 14.3 percent last month. There were 1,351 property sales in the region in January, down from 1,577 in the same month of 2012, the Real Estate Board of Greater Vancouver said Monday. Reports in the business section: * The end of the penny has given the Royal Canadian Mint 20 percent more capacity, and it plans to put it to use producing other countries' coins. The Mint struck its final penny last May after the federal government announced it would kill the coin as a cost-saving measure. Monday marks beginning of the penny's phase-out as the Mint will stop distributing them to retailers and banks. NATIONAL POST * The official word on the progress of free trade negotiations between Canada and the European Union is that "no deal is imminent." Unofficially, trade sources suggest a framework deal is sitting on the Prime Minister's desk, waiting for him to decide whether the terms are likely to cause him unacceptable political headaches. FINANCIAL POST * Canadian Pacific Railway Ltd's decision to hire away a top Canadian National Railway Co executive came with the hefty price in the form of a deal not to hire about 60 of its rivals' top marketing and operations executives through 2016. Canadian Pacific said Monday it had appointed Canadian National's chief operating officer, Keith Creel, as its new president, chief operating officer, and the likely successor to Hunter Harrison as its chief executive. China CHINA SECURITIES JOURNAL --China could raise crude oil prices after the Chinese Spring Festival holiday (Feb. 9 to 17), due to a rise in global oil prices, the official paper said citing industry sources. --China may announce plans this year to develop 120 trading posts along its borders to stimulate the country's struggling exports and boost investment. --China Vanke Co Ltd, the country's largest real estate developer by turnover, said its board had approved a plan to move trading of its foreign currency shares to Hong Kong from Shenzhen. SHANGHAI SECURITIES NEWS --The State Council said it plans to implement paid vacation rules to boost domestic tourism. Analysts said this could boost tourism revenues by 50 billion yuan ($8.02 billion) per year. --China's yuan deposits in Hong Kong could rise to 700 billion yuan this year, from 600 billion yuan last year, analysts told the official paper. PEOPLE'S DAILY --China's Ministry of Public Security said it has handled 120 food safety cases and arrested 350 people since it started a crackdown on illegal food and food safety in January. SHANGHAI DAILY --Police seized more than 40 tons of fake mutton and beef rolls in China's northeastern Liaoning province. The fake food was made from duck and laced with large amounts of carcinogens. Fly on the Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades Alon USA Partners (ALDW) upgraded to Buy from Neutral at GoldmanArmstrong World (AWI) upgraded to Overweight from Equal Weight at BarclaysBed Bath & Beyond (BBBY) upgraded to Buy from Neutral at CitigroupCullen/Frost (CFR) upgraded to Outperform from Perform at OppenheimerD.R. Horton (DHI) upgraded to Overweight from Equal Weight at BarclaysHarmony Gold (HMY) upgraded to Neutral from Sell at CitigroupMacy's (M) upgraded to Buy from Neutral at CitigroupMarvell (MRVL) upgraded to Outperform from Sector Perform at RBC CapitalStillwater Mining (SWC) upgraded to Overweight from Neutral at JPMorganTarget (TGT) upgraded to Buy from Neutral at CitigroupUnitedHealth (UNH) upgraded to Conviction Buy from Neutral at GoldmanZynga (ZNGA) upgraded to Buy from Neutral at BofA/Merrill Downgrades Alon USA Energy (ALJ) downgraded to Neutral from Buy at GoldmanAmerican Science & Engineering (ASEI) downgraded to Hold from Buy at Benchmark Co.Associated Banc-Corp (ASBC) downgraded to Perform from Outperform at OppenheimerAvalonBay (AVB) downgraded to Hold from Buy at JefferiesBaidu (BIDU) downgraded to Market Perform from Outperform at Raymond JamesEquity Residential (EQR) downgraded to Hold from Buy at JefferiesIconix Brand (ICON) downgraded to Neutral from Buy at CitigroupInvesco (IVZ) downgraded to Market Perform from Outperform at BMO CapitalKB Home (KBH) downgraded to Equal Weight from Overweight at BarclaysKohl's (KSS) downgraded to Neutral from Buy at CitigroupPulteGroup (PHM) downgraded to Equal Weight from Overweight at BarclaysRealogy (RLGY) downgraded to Equal Weight from Overweight at BarclaysRoyal Caribbean (RCL) downgraded to Market Perform from Outperform at Raymond JamesRyland Group (RYL) downgraded to Underweight from Equal Weight at BarclaysScientific Games (SGMS) downgraded to Sell from Hold at Deutsche BankStryker (SYK) downgraded to Neutral from Buy at UBSToll Brothers (TOL) downgraded to Underweight from Equal Weight at BarclaysYum! Brands (YUM) downgraded to Neutral from Outperform at RW Bairdhhgregg (HGG) downgraded to Underperform from Neutral at Credit Suisse Initiations ASML (ASML) initiated with an Outperform at CowenApplied Materials (AMAT) initiated with an Outperform at CowenBroadcom (BRCM) initiated with an Outperform at CowenChipMOS (IMOS) initiated with an Outperform at CowenHealth Care REIT (HCN) initiated with an Overweight at BarclaysIntel (INTC) initiated with a Neutral at CowenKLA-Tencor (KLAC) initiated with a Neutral at CowenLam Research (LRCX) initiated with a Neutral at CowenNeurocrine Biosciences (NBIX) initiated with a Buy at Lazard CapitalRepros Therapeutics (RPRX) initiated with a Buy at Lazard CapitalSanDisk (SNDK) initiated with a Neutral at CowenTeradyne (TER) initiated with an Outperform at CowenTexas Instruments (TXN) initiated with a Neutral at CowenUlta Salon (ULTA) initiated with an Outperform at Credit SuisseVanda Pharmaceuticals (VNDA) initiated with a Buy at Lazard CapitalVitamin Shoppe (VSI) initiated with an Outperform at Credit SuisseWorkday (WDAY) initiated with a Neutral at Citigroup HOT STOCKS Dell (DELL) board said to meet last night to vote on buyout, Bloomberg reports Yum! Brands (YUM) CEO Novak: We no longer expect to achieve EPS growth in 2013Sees KFC China SSS improving as the year progressesVirgin Media (VMED) confirms talks with Liberty Global (LBTYA) over possible transactionJ.C. Penney (JCP) said notice of default from bondholders is invalid, without meritArbitron (ARB) and Nielsen (NLSN) voluntarily provided FTC additional time for merger reviewBaker Hughes (BHI) to retain process and pipeline services businessSpectra (SE) targets investments of $25B in capital expansion projects through decade U.S. Bancorp's (USB) Elavon acquired Collective POS, terms not disclosedA.T. Cross (ATX) to explore strategic alternatives for Cross accessory divisionVitamin Shoppe (VSE) said FTC ended investigation into Super Supplements deal EARNINGS Companies that beat consensus earnings expectations last night and today include:Becton Dickinson (BDX), Diamond Offshore (DO), NYSE Euronext (NYX), BP (BP), Yum! Brands (YUM), Array BioPharma (ARRY), Baidu (BIDU), SolarWinds (SWI), Hartford Financial (HIG), Luminex (LMNX), Anadarko (APC), Gilead (GILD), Edwards Lifesciences (EW) Companies that missed consensus earnings expectations include:Centene (CNC), Symetra Financial (SYA), Anadarko (APC) Companies that matched consensus earnings expectations include:Santander Chile (BSAC), BCD Semiconductor (BCDS) NEWSPAPERS/WEBSITES Dollar stores (DG, FDO, DLTR) are finding it harder to make money as sales-growth has slowed and in some cases margins have been shrinking as competition for their target customer—the cash-strapped consumer—has increased, the Wall Street Journal reports. Money-market funds have a high-quality problem: investors are entrusting them with too much cash. The flood of money is prompting the funds to seek higher returns in investments that until recently were seen as too risky. Investors put $149B into U.S.-based money-market funds between the start of November and January 30, bringing total assets under management to $2.695T according to the Investment Company Institute, the Wall Street Journal reports President Obama will meet today with CEOs from 12 companies including Goldman Sachs Group (GS) Lloyd Blankfein and Yahoo's (YHOO) Marissa Mayer to discuss immigration and deficit reduction. Others include Arne Sorenson of Marriott International (MAR), Jeff Smisek of United Continental Holdings (UAL) and Klaus Kleinfeld of Alcoa (AA), Reuters reports The euro zone's economy has turned a corner, according to a business survey that showed businesses are more optimistic about the future but highlighted a growing split between the region's economies. Markit's Eurozone Composite PMI, jumped in January to a 10-month high of 48.6 from 47.2 in December, Reuters reports Facebook (FB) is developing a smartphone application, expected to be released next month, that will track the location of users, sources say, bolstering efforts to benefit from growing use of social media on mobile computers, Bloomberg reports Wells Fargo & Co. (WFC), which counts Warren Buffett’s company (BRK.A) as its largest shareholder, is planning to target Persian Gulf sovereign wealth funds to expand its client base in the Middle East, Bloomberg reports SYNDICATE Celldex (CLDX) files to sell $75M in common stockEnterprise Products (EPD) announces offering of 8M common unitsFidus Investment (FDUS) files to sell common stockKCAP Financial (KCAP) files to sell 4M shares of common stockMagnaChip (MX) files to sell 5M shares of common stock
CAT beats ex-Chinese fraud: $1.91, Exp. $1.70; Warns 2013 could be a "tough year"; sees 2013 EPS in $7.00-$9.00 range, Exp. $8.54, sees Q1 sales well below Q1, 2012 Yi Warns on Currency Wars as Yuan Close to ‘Equilibrium’ (BBG) Monte Paschi seeks new investor as scandal deepens (Reuters) Assault Weapons Ban Lacks Democratic Votes to Pass Senate (BBG) Toyota Again World's Largest Auto Maker (WSJ) Curious why all those Geneva Libor manipulators moved to Singapore? Bank probes find manipulation in Singapore's offshore FX market (Reuters) Japan eased safety standards ahead of Boeing 787 rollout (Reuters) - so like Fukushima? Goldman is about to be un charge: Osborne cools on changing inflation target (Telegraph) Abe Predicts Bump in Revenue as Japan Emerges From Recession (BBG) - actually, "hopes" is the correct verb here Toxic Smog in Beijing Fueling Auto Sales for GM, VW (BBG) Fed waits for job market to perk up (Reuters) ... any minute now that S&P to BLS trickle down will hit, promise BofA shifts derivatives to UK (FT) Overnight Media Digest WSJ * Shortly after the U.S. Federal Aviation Administration issued safety rules in 2007 for using lithium-ion batteries on Boeing Co's 787 Dreamliner jets, an industry standards-setting group called for stricter testing to prevent battery fires on aircraft. But Boeing and FAA officials decided that since design and testing of the plane was so far along, mandating the tougher standards would disrupt years of joint safety work and unfairly delay production of the cutting-edge Dreamliners, said people familiar with the details. * At least 232 people died in a fire that swept through a crowded nightclub in the southern Brazilian city of Santa Maria early Sunday, local government officials said. * Barnes & Noble Inc expects to close as many as a third of its retail stores over the next decade, the bookseller's top store executive said, offering the most detailed picture yet of the company's plans for the outlets. * Nexen Inc, the Canadian oil-sands operator that Chinese state energy giant CNOOC Ltd has agreed to buy, said the two extended the deadline for the closing of that $15.1 billion proposed deal by 30 days, as they await U.S. government approval. * The head of foreign-exchange sales at Citigroup has created an alter ego, "Berniman," as part of an effort to generate votes in Euromoney's annual ranking of foreign-exchange firms. * Fisker Automotive Inc, the struggling maker of battery-powered sports cars, is in talks with several potential bidders as it accelerates a search for buyers and investors so it can keep operating, according to people familiar with the discussions. * EasyJet said Michael Rake is stepping down as chairman of the low-cost airline later this year. FT FED WARNS ON LACK OF UNITY BY REGULATORS: Regulators in the United States are warning banks not to assume that countries will cooperate to stop the failure of a big financial group such as Lehman Brothers. OSBORNE COOLS ON CHANGING INFLATION TARGET: Britain's Finance Minister George Osborne is cooling to the idea of changing the Bank of England's inflation target to one focused on the amount of spending according to unnamed officials at the Treasury. BARCLAYS AND CREDIT SUISSE SET TO TEST WATER WITH NEW CLOs: In the first such move since new regulations, both the banks are preparing collateralised loan obligations, bundles of corporate loans which boomed until the 2008 subprime crisis in the United States, according to unidentified sources close to the deal. US FACES FRESH FINANCIAL SHOCK: Spending cuts of $1.2 trillion are likely to go ahead as Republicans in Congress push for reductions in spending at the Pentagon and on government programmes in the face of Obama's objections. STRONG CAR EXPORTS TO SLASH TRADE DEFICIT: Increased car production in the UK is expected to result in a trade deficit on automobiles of £150 million in 2012, the smallest since 1975. COMPUTER PATENTS HIT NEW PEAK: Over 14,000 patents were registered in 2012 via the International Patent Co-operation Treaty, up more than 20 percent compared to 2011.() TERRA FIRMA: HANDS TO 'MOVE ON' WITH 3 BILLION EURO FUNDRAISER The founder of the private equity company Terra Firma is to push ahead with a 3 billion euro fund to buy green energy infrastructure assets, according to people familiar with the matter. NYT * America's top trade negotiator said President Obama was committed to reaching an agreement to smooth trade with the European Union, but only if it was written in a way that would overcome objections from farm groups and that could win congressional approval. * As U.S. federal authorities continue to press an insider trading investigation, SAC Capital Advisors, owned by Steven Cohen, is working to retain clients and staff members. * JPMorgan Chase & Co, the nation's largest bank, said its chief risk officer, John Hogan, would take a sabbatical. His departure follows a shake-up this week, when Martha Gallo was replaced as head of global compliance and regulatory management. * A bipartisan group of U.S. senators has agreed on a set of principles for a sweeping overhaul of the immigration system, including a pathway to American citizenship for 11 million illegal immigrants that would hinge on progress in securing the borders and ensuring that foreigners leave the country when their visas expire. * Egypt President Mohamed Mursi declared a state of emergency and a curfew in three major cities on Sunday, as escalating violence in the streets threatened his government and Egypt's democracy. Canada THE GLOBE AND MAIL * Kathleen Wynne won the Ontario Liberal leadership race and is set to become the first female premier in the province's history and the sixth female premier currently in office in Canada. * Canadian Finance Minister Jim Flaherty said the government is not happy with the work of the Parliamentary budget watchdog, the clearest indication yet that Ottawa is rethinking the post as the government's first Parliamentary Budget Officer, Kevin Page, prepares to leave. Reports in the business section: * CNOOC Ltd and Nexen Inc have extended a deadline to complete the $15.1 billion takeover of the Canadian oil and gas company by 30 days as they await U.S. regulatory approval. The deal, the largest Chinese overseas takeover in history, has already cleared regulatory hurdles in Canada, the United Kingdom, the EU and China. NATIONAL POST * After days of waiting for harsh Antarctica winds and snow to ease, searchers reached the wreckage of a downed Canadian plane only to discover the blast of winter had dealt another cruel blow. The front end of the Twin Otter aircraft was so embedded in ice and snow, rescuers decided the aircraft was too difficult and dangerous to breach. The bodies of the three Canadians aboard, who are believed to have perished on impact, will remain inside their icy cockpit on a steep mountain peak - near the summit of Mount Elizabeth - until October. * Canada's economy could benefit from an influx of toking tourists if weed is legalized, the Liberal Party of Canada said in a new analysis that backs the party's 2012 policy convention resolution. China CHINA SECURITIES JOURNAL --China would take a long time to boost its shale gas output due to technical and pipeline issues, former top energy official Zhang Guobao said. SHANGHAI SECURITIES NEWS --The Chinese Academy of Sciences forecast China's economic growth would rise about 8.4 percent this year, up 0.6 percentage points from last year. --Shanghai plans to set up a free trade zone in the city this year and has targeted a 7.5-percent economic growth, acting mayor Yang Xiong said at an internal meeting. CHINA DAILY (www.chinadaily.com.cn) --China's new leadership should consider setting up an agency to oversee reform and redefine the function of government to make it more focused on maintaining growth, Fan Gang, director of the National Economics Research Institute of the China Reform Foundation, told the paper at the World Economic Forum. --Shanghai is expected to attract 150 more foreign multinationals to set up their regional headquarters in the city by 2020, bringing the total to 553. SHANGHAI DAILY --China's traditional toy makers are feeling pinch of a dramatic decline in exports and the increasing popularity of electronic toys and devices. PEOPLE'S DAILY --China has published its 2012 government white paper both in Chinese and English versions, which includes topics on rare earths, the Diaoyu island, China's judicial reforms, energy policy and medical sector. --There is no decision yet on expanding the property tax to more Chinese cities after two major cities --Shanghai and Chongqing--launched a pilot scheme for two years. Fly On The Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades ASML (ASML) upgraded to Buy from Neutral at CitigroupBest Buy (BBY) upgraded to Buy from Hold at BB&TFacebook (FB) upgraded to Outperform from Market Perform at Raymond JamesNetApp (NTAP) upgraded to Overweight from Equal Weight at BarclaysNews Corp. (NWSA) upgraded to Overweight from Equal Weight at Morgan StanleyNorfolk Southern (NSC) upgraded to Buy from Hold at JefferiesRealty Income (O) upgraded to Outperform from Market Perform at Wells FargoSensata (ST) upgraded to Overweight from Equal Weight at BarclaysSony (SNE) upgraded to Buy from Neutral at CitigroupStaples (SPLS) upgraded to Neutral from Sell at Goldman Downgrades AK Steel (AKS) downgraded to Sell from Neutral at GoldmanAmerican Midstream Partners (AMID) downgraded to Market Perform at Wells FargoApple (AAPL) downgraded to Neutral from Outperform at RW BairdBed Bath & Beyond (BBBY) downgraded to Sell from Neutral at GoldmanBrookfield Properties (BPO) downgraded to Sell from Neutral at CitigroupBuckeye Partners (BPL) downgraded to Neutral from Buy at GoldmanCentury Aluminum (CENX) downgraded to Sell from Neutral at GoldmanCorning (GLW) downgraded to Equal Weight from Overweight at BarclaysEnbridge Energy Management (EEQ) downgraded to Market Perform at Wells FargoEnbridge Energy (EEP) downgraded to Market Perform from Outperform at Wells FargoEnergizer (ENR) downgraded to Equal Weight from Overweight at Morgan StanleyHancock Holding (HBHC) downgraded to Market Perform from Outperform at Keefe BruyetteHancock Holding (HBHC) downgraded to Underperform from Neutral at Credit SuisseHolly Energy (HEP) downgraded to Sell from Neutral at GoldmanImmunoGen (IMGN) downgraded to Perform from Outperform at OppenheimerJoy Global (JOY) downgraded to Market Perform from Outperform at Raymond JamesLRR Energy (LRE) downgraded to Market Perform from Outperform at Wells FargoLife Technologies (LIFE) downgraded to Neutral from Buy at UBSNavios Maritime Partners (NMM) downgraded to Hold from Buy at Deutsche BankNYSE Euronext (NYX) downgraded to Neutral from Buy at UBSNoble Corp. (NE) downgraded to Equal Weight from Overweight at StephensPetSmart (PETM) downgraded to Reduce from Neutral at NomuraPlains All American (PAA) downgraded to Market Perform from Outperform at Wells FargoSouFun (SFUN) downgraded to Neutral from Buy at GoldmanSouthern Copper (SCCO) downgraded to Underweight from Hold at BB&TSouthern Copper (SCCO) downgraded to Neutral from Overweight at JPMorganState Street (STT) downgraded to Market Perform from Outperform at Keefe BruyetteWeyerhaeuser (WY) downgraded to Sector Perform from Outperform at RBC Capital Initiations Akorn (AKRX) initiated with a Sector Perform at RBC CapitalDaVita (DVA) initiated with a Market Perform at BernsteinPerrigo (PRGO) initiated with a Sector Perform at RBC CapitalYouku Tudou (YOKU) initiated with a Buy at Deutsche Bank HOT STOCKS Daimler (DDAIF), Nissan (NSANY), Ford (F) sign deal on fuel cell carsJohnson & Johnson (JNJ) to explore sale of women's products business, DJ reports Dole Food (DOLE) announced resolution of class action lawsuitBGI-Shenzhen extended tender offer for Complete Genomics (GNOM)salesforce.com (CRM) to seek 4-for-1 stock split at shareholder meetingJoS. A. Bank (JOSB) sees opening 45-50 new stores in FY13 CGG Veritas (CGV) to change name, symbol to CGG, reorganizes into three divisions EARNINGS Companies that missed consensus earnings expectations include:Biogen (BIIB) NEWSPAPERS/WEBSITES Toyota Motor (TM) today reclaimed the title of world's largest automaker, posting a 23% gain in global sales to a record 9.75M in 2012, ahead of GM (GM) and Volkswagen (VLKAY), the Wall Street Journal reports The U.S. housing recovery is starting to show up in corporate results. Companies that sell power tools, air conditioners, carpet fibers, furniture and cement mixers are reporting stronger sales for the fourth quarter, providing further evidence that a turnaround in the housing market is taking hold, the Wall Street Journal reports Japan's government gave Boeing's (BA) 787 Dreamliner and its made-in-Japan technology a boost in 2008 by easing safety regulations, fast-tracking the rollout of the jet for Japan's biggest airlines, according to records and participants in the process, Reuters reports Internal reviews by banks in Singapore found evidence that traders colluded to manipulate rates in the offshore foreign exchange market, sources say, Reuters reports The risk of owning sovereign bonds has fallen to a two-year low, setting the stage for more gains by the riskiest government securities as the investors look to an improving world economy, Bloomberg reports The lockstep moves in global stocks that dominated equity markets for the past six years are breaking down at the fastest rate on record, a sign investor confidence is finally returning from the financial crisis. A measure of how much the 2,073 companies in the FTSE All- World Developed Index swing in unison has dropped 31% since June, the biggest retreat since at least 1993, according to data compiled by Societe Generale SA and Bloomberg. BARRON’S A much larger dividend could help Apple's (AAPL) stock “Made in America” making a comeback (AAPL, CAT, F, GE, WHR, SSNLF, TM)Companies that benefit from lower natural gas prices could “win” (SWN, LYB, NUE, DOV, CPN, CF, WMB, UNP)Grand Ole Opry owner Ryman (RHP) could rise 25%Dole (DOLE) could have a special dividend or share repurchase in future SYNDICATE FreeSeas (FREE) files to sell 3.96M shares of common stock for holder ACTIVIST/PASSIVE FILINGS Carl Icahn reports 5.61% stake in Transocean (RIG), urges $4.00 per share dividend
IJING | Sun Nov 4, 2012 1:56am EST (Reuters) - Taxi operators in China interested in electrifying their fleet can pay the full price of BYD's (1211.HK) (002594.SZ> e6 in installments, saving them the hefty upfront full payment they have to make for a gasoline-powered car, the Warren Buffett-backed Chinese car maker said on Sunday.They can sign a rental agreement with financing firm or a third party taxi operator which own e6 and claim ownership of the car after the full payment is made, it said in a statement.Taxi operators can also buy e6 through bank credit with zero down-payment, BYD said, adding China Development Bank is the strategic financing partner for the new initiative.Each e6 purchased through such arrangements would save a taxi operator 326,477 yuan in five years because of cheaper electric price, even though the e6 costs 180,000 yuan after government subsidies compared with 10,000 yuan for a gasoline car, it said.BYD, which also makes the electric bus K9 and the plug-in hybrid F3DM, is seen as a domestic pioneer in green auto technology in China.Its e6 joined Shenzhen's taxi fleet in 2010, as part of pilot project initiated by China to put 5 million plug-in hybrids and electric cars on the road by 2020.However, the electric car is still a rarity in Chinese cities due to the lack of charging facilities and the high battery cost. Last year, a mere 8,159 were sold across the country, including those for government pilot EV programs.The safety of BYD's electric vehicles has been called into question after an e6 taxi caught fire in a fatal accident in May. A probe showed the lithium-ion phosphate battery that powers the car was not the cause of the fire and it was due to the high-speed collision, BYD said in August.(Reporting by Fang Yan in BEIJING and Kazunori Takada in SHANGHAI; Editing by Jeremy Laurence) Discuss this topic @ Share Investor Forum - Register freeRead the full transcript of the March 2 Squawk Box Interview with Warren Buffett Download the 2010 Berkshire Hathaway Annual Report Download the 1977 - 2010 Warren Buffett Letter's to Berkshire Hathaway Shareholders Warren Buffett @ Amazon Secrets in Plain Sight: Business & Investing Secrets of Warren Buffett, 2012 Edition (eBooks on Investing Series) by Jeff Matthews (Mar 14, 2012) (14 customer reviews) Formats Price New Used Kindle Edition Auto-delivered wirelessly $4.99 7. Buffett: The Making of an American Capitalist by Roger Lowenstein (Apr 29, 2008) (142 customer reviews) Formats Price New Used Collectible Paperback Order in the next 20 hours to get it by Tuesday, Nov 6. Eligible for FREE Super Saver Shipping. $19.00 $11.29 $6.99 $4.00 Hardcover $6.95 $0.57 $23.95
Scope of Sandy's devastation widens, death toll spirals (Reuters) On Staten Island, cries for help replaced by a loss for words (Reuters) China responds to Japan’s provocation (FT) Japan governments open to compromise to avoid “fiscal cliff” (Reuters) It's Global Warming, Stupid (Businessweek) Sharps says there is "Material Doubt" about its ability to survive (Bloomberg) Thomson Reuters operating profit slips, trading faces pressure (Reuters) Germany's Schaeuble says debt reduction is global task (Reuters) The Luxury Repo Men (Businessweek) Deutsche Bank Faces Top Surcharge as FSB Shuffles Tiers (Bloomberg) Storm over ‘Lagarde list’ intensifies (FT) Greek, European Officials Dispute Budget Reprieve (WSJ) Rivals part ways over economy (FT) Fed’s Rosengren: Fed Should Buy Bonds Until Unemployment Hits 7.25% (WSJ) New Dutch finance minister promise cuts, tough line on euro zone (Reuters) Aussie Strength Allows Economy to Run Lower Rates, Swan Says (Bloomberg) Overnight Economic Digest WSJ * On the lower east side, thousands of residents, many of them elderly, remained trapped in high - rise buildings with no water, power or heat - and limited phone service to call for help after hurricane Sandy hit the eastern coast, officials said. * James Murdoch was re-elected to the board of British Sky Broadcasting Group Plc, with 95 percent of the vote. * In a change that reflects a shifting balance of power between Europe and the developing world, many southern European companies that are struggling to raise financing at home are turning to their emerging-markets businesses for relief. * Canadian oil companies are rethinking investment in one of North America's earliest and fastest growing "unconventional" oil frontiers-Alberta's oil sands. * Sharp Corp posted a $3.12 billion loss and said it had doubts about remaining a "going concern," another sign of the problems gripping Japan's consumer-electronics makers. Sony Corp also reported a loss. * China is marshalling its vast security apparatus ahead of a once-a-decade shuffle of party leaders, its first such transition in the era of social media, with half a billion Chinese swapping information online. FT BANK OF ENGLAND'S CULTURE ATTACKED Excessive deference and hierarchy is damaging the Bank of England's effectiveness, according to three independent reviews that criticise the central bank's culture. BANKS IN LINE OF FIRE OVER PPI FIGURES The bill for UK banks for mis-selling payment protection insurance is set to hit 10.8 billion pounds on Friday when RBS sets aside another 400 million pounds. SHARP ADMITS 'MATERIAL DOUBT' ON SURVIVAL Sharp has admitted there is "material doubt" about its ability to stay in business as it warned of a second year of record losses. SHELL WARNS REFINING BOOM TO END SOON The refining boom that buoyed oil majors' third-quarter results could be shortlived, Royal Dutch Shell has warned. EUROPEAN CORPORATE BUYBACKS HIT LOWS Share buybacks by European companies have sunk to the lowest levels since 2009 as pessimism over business conditions spurs managements to hold on to cash. POTASH IN TALKS TO BUY ISRAEL CHEMICALS Potash Corp has approached the Israeli government for approval to buy rival Israel Chemicals (ICL ), which has a market value of $15 billion. MOSCOW DEFENDS ROSNEFT MOVE ON TNK-BP Igor Shuvalov, Russia's first deputy prime minister, has defended Rosneft's acquisition of TNK-BP as helping to speed the privatisation of the state oil group. STORM OVER 'LAGARDE LIST' INTENSIFIES Greece's parliament has been asked to investigate why two former finance ministers did not pursue possible tax evaders with Swiss bank accounts. NYT * Damages from hurricane Sandy double a previous forecast, with economists warning that it could shave a half percentage point off the nation's economic growth. * The Federal Energy Regulatory Commission's broad crackdown is aimed at manipulation of energy prices. * The Congressional Research Service withdrew a report that found no correlation between top tax rates and economic growth after senators raised concerns. * Policy makers are being urged to address long-term unemployment before those looking for work decide to give up trying for good. * Dragged down by advertising and circulation declines, Martha Stewart Living Omnimedia will lay off staff and reduce magazines. * Sony Corp, Sharp Corp and Panasonic Corp have all reported significant losses, their boom years ended by global crisis and their own poor decisions Canada THE GLOBE AND MAIL * Prime Minister Stephen Harper will land in India this weekend with a simple mission: rekindling a number of high-profile trade deals with this rapidly expanding economy that have either stalled or made slow progress. * Just two days after vowing he would not hide from the corruption scandal that has swamped his city and brought an emergency ethics crackdown from the province, the mayor of Montreal Gerald Tremblay has left on a surprise vacation. Reports in the business section: * BCE Inc vowed to protect its dividend strategy and consider other takeovers if last-ditch efforts to rescue a C$3 billion bid for Astral Media Inc fail. * The Andean gold project that is key to driving future growth at Barrick Gold Corp just got more expensive to build, and the company is still not done looking at costs. The Toronto-based miner said the Pascua Lama project, set in the mountains between Chile and Argentina, will now cost as much as $8.5 billion to develop. NATIONAL POST * Toronto Mayor Rob Ford is defending his decision to leave another city hall meeting in order to coach his high school football squad, arguing that a game that ended early because of a dispute Thursday "could have gotten really ugly" if he hadn't been there to control his team. * The Parti Quebecois government is introducing new anti-corruption measures in its first piece of legislation and will subject companies to increased scrutiny if they want public contracts. FINANCIAL POST * National Bank of Canada is cutting about 300 jobs, including 10 vice presidents, as the country's sixth biggest lender shakes up its organizational structure to tighten expenses. * Crescent Point Energy Corp, Canada's No. 4 independent oil exploration company, said Thursday it has agreed to buy closely held Ute Energy Upstream Holdings LLC for $784 million in cash. China CHINA SECURITIES JOURNAL -- China should encourage city commercial banks and rural banks to list on the stock market and may lower listing requirements for these banks, said Chen Dongzheng, president of the Shenzhen Stock Exchange. -- Zhejiang Shibao Co Ltd abruptly changed its forecast for 2012 net profit on the night before listing on the Shenzhen Stock Exchange. The new forecast says net profits may drop 27-31 percent. SHANGHAI SECURITIES NEWS -- Baoshan Iron & Steel Co Ltd (Baosteel) said it had bought back 242 million shares in a price range of 4.51 to 4.65 yuan per share as of Nov. 4. CHINA DAILY (www.chinadaily.com.cn) -- Microsoft Corp has signed an agreement with the Shanghai government and 21Vianet to offer public cloud services to businesses in the city as well as to the government. -- Tourists visiting the southern island of Hainan will have a higher duty-free allowance starting this week, in a bid to make the island even more popular as a tourist destination. PEOPLE'S DAILY -- In order to help rural residents renovate dilapidated houses, China's central government has already dispersed 15 billion yuan ($2.40 billion) originally budgeted for 2013.
News may come, and news may go, but the fiscal policy implementation vehicle known as the market, and now controlled by the Political Reserve don't care. For those who do, here is what has happened in the past few hours and what is on deck for the remainder of the week. From DB's Jim Reid: The risk tone in Asian equities is mostly softer overnight led by underperformance in China. The Shanghai Composite and the Shenzhen Composite benchmarks are down 1.3% and 1.7% respectively. Ongoing concerns about China’s slowdown and escalating tensions with Japan are probably weighing on sentiment. Chinese Vice President Xi Jinping re-appeared in public after a two week absence which may have helped put to bed some of the health speculations but there is plenty of focus on the transition as we navigate towards October. Elsewhere in Asia credit spreads tighten further as demand for spread products continue to rise on the back of the Fed’s latest liquidity policies. The Asia IG and Australia iTraxx indices are 3bp tighter as we type. Recapping Friday’s move, the QE3 announcement underpinned the backdrop for a solid session for risk. The S&P500 added 0.4% even though economic data flow was mixed. Headline retail sales were marginally ahead of expectations (+0.9%mom vs +0.8%) but the core print was weak. IP (-1.2% v 0.0%) was below market consensus with broad based weakness in the detail. Headline CPI came broadly in line (+1.7% yoy) with consensus helped by the strongest monthly gain in energy prices (+5.6%) since June 2009. Indeed energy prices have had a good run recently with Brent (+0.67%) up for the 7th consecutive day to $116.6/bbl on Friday. Brent and is now nearly 30% above the lows in June. Gold (+0.2%) edged higher to $1770/oz while the S&P GSCI index finished the week 2.6% higher. We’ve noted in earlier research how previous episodes of QE have triggered one of the strongest rallies in commodity prices coupled with one of the weakest nominal GDP recoveries through history so this is certainly a trend to watch again as we welcome another bout of liquidity. Continuing on this theme but moving on to fixed income, long term inflation expectations were also on the rise last week as US 10yr breakevens rose 27bps to 264bp – the highest since April 2011. Nominal yields backed higher across the board led by longer-dated bonds. The 2yr, 5yr, 10yr and 30yr yield rose +2bp, +7bp , +14bp and +16bp on Friday to close at 0.250%, 0.713%, 1.866% and 3.088% respectively. In corporate credit the US primary market ended the week just under $33bn across 31 transactions which puts last week as the second largest issuance week this year. Also helping sentiment on Friday were a number of developments from the ECOFIN meeting in Cyprus. Spain told the ECONFIN meeting that it will set deadlines for structural reforms which will be announced on Sept 28th, the same the day as the 2013 budget is published and results of stress tests of Spanish banks will be made public. An EU official was also quoted as having said that this move was a precursor to formally requesting EU aid which will likely be in the form of a "precautionary credit line" from the ESM rather than a full bailout. Spanish 10yr bond yields closed 15bp wider on Friday (5.727%). Greece was also high on the agenda in Cyprus. IMF’s Lagarde said that Greece may get more time to reach fiscal targets under its current bailout program, saying that an extension "needs to be considered as an option". Juncker said the troika must take a decision by the end of October on how to revise the Greek programme and said there was no question of Greece leaving the euro zone. In other European headlines, Monti and Merkel issued a joint statement saying that the past week was "very positive for Europe", likely referring to the German constitutional court's decision, Dutch elections and what they referred to as a growing "awareness of the European public that solutions to the current financial crisis should emerge from more intense European cooperation". On the topic of bank supervision, French, Belgian and Italian officials continued their calls for rapid progress on ECB central bank supervision the finance ministers from Germany, Sweden, the Netherlands and Poland are still against certain aspects of the EU’s proposals. Interestingly over the weekend Schaeuble criticised Buba’s Weidmann for his public opposition to the OMT. With major policy meetings now out of the way, the focus for the remainder of the week should return to economic fundamentals and dataflow. In the US, manufacturing and housing will be the main focus. Key data include the Empire State Manufacturing report today followed by housing starts, building permits and existing home sales on Wednesday. The Markit US PMI Preliminary and the Philly Fed survey are due on Thursday. We also have several Fed speak throughout the week. Bellwether Fedex’s Q1 earnings tomorrow should be interesting. Meanwhile, it will be a relatively data-light week in the EU but the focus will probably be the Euroland, German and French flash PMIs on Thursday. That aside we get euroland trade data for July today, the German ZEW survey and UK retail sales tomorrow followed by the BoE minutes on Wednesday. Data side ECB’s Nowotny and Coene will speak at separate events today on the topic of challenges facing the euro-area. French finance minister Moscovici is also due to speak at the LSE on the outlook for French policy.The Dutch 2013 budget is due for submission to the new parliament for approval tomorrow. In Asia, all eyes will be on HSBC's flash manufacturing PMI for China on Thursday. Events wise Chinese Premier Wen will meet EU’s Van Rompuy Barroso in Brussels on Thursday. And, to follow, a summary recap of this week's key events via GS: Monday 17 September India: RBI meeting. Consensus and we expect rates to remain unchanged at 8% and 7%. The RBI will consider the impact of a less-than-normal monsoon on food prices in the next few months. Liquidity conditions have eased considerably, and with the announcement of QE3 by the Fed on Thursday, can be expected to ease further. Therefore, we do not see any reason for the RBI to inject further liquidity into the system through changes in cash reserve requirements. Also of interest: Korean department store sales, Philippines remittances, Euro area balance of payments, US Empire survey Tuesday 18 September Australia RBA minutes: While we do not sense that a rate cut was seriously entertained at the last meeting (which kept rates unchanged at 3.5%), it will be interesting to see if the central bank flags a meaningfully heightened concern about the consequences of recent falls in bulk commodity prices and/or the peak in the investment cycle. In addition, we will be trying to gauge from the Minutes whether the RBA feels that its earlier rate cuts have gained sufficient traction on demand and sentiment. UK CPI (Aug): Consensus expects a reading of 2.5%yoy after 2.6% previously. US Current Account (Q2): The Bloomberg consensus expects a narrowing of the deficit to US$127bn from US$137bn previously, as do we. We will also be paying attention to the US BBoP. It has been in persistent deficit, a situation which we expect to continue and this is a key underpinning of our dollar bearish views. US TIC data (Jul): The data will provide the latest evidence of foreign appetite for US assets. Foreign buying of USTs has been strong, but appetite for other assets has been relatively weak. In addition, US investors have been repatriating small amounts of foreign assets. Also of Interest: India CPI Wednesday 19 September Malaysia CPI (Aug): The Bloomberg consensus and we expect an unchanged print of 1.4%. BoJ Meeting: Will they react to QE3 and the recent appreciation of the yen? At this point we think they will keep policy unchanged. Sweden: Riksbank minutes. UK: BoE minutes. Also of Interest: NZ Balance of Payments, Philippines Balance of Payments. Thursday 20 September China: HSBC Flash PMI (Sep). Last reading was 47.6. New Zealand Q2 GDP: The Bloomberg consensus expects a rise of 0.4%, which is a slower growth rate than the 1.1% in Q1. We expect a rise of 0.3%qoq. Taiwan Monetary Policy Meeting: The Bloomberg consensus expects rates to remain on hold at 1.875%. The bank faces the task of navigating between very weak exports and high inflation. Taiwan Export Orders. Euro area Flash PMIs (Sep): The Bloomberg consensus expects a rise to 45.5 from 45.1 on the manufacturing index and a rise to 48.5 from 48.3 on the services index. UK Retail Sales (Aug): The Bloomberg consensus expects a rise to 3%yoy from 2.8%yoy. US Philadelphia Fed survey (Sep): The Bloomberg consensus expects a rise to -3.3 from -7.1. We expect a slightly higher rise to -2.0. Also of interest: Japan trade balance (Aug), Swiss trade balance. Friday 21 September Euroarea: Spanish PM Rajoy and Italy's Monti scheduled to meet in Rome. Canada CPI (Aug): The Bloomberg consensus expects an unchanged reading of 1.3%yoy.
SHARE price of China's first listed commercial bank on the A-share market, Shenzhen Development Bank Co, shed after its renaming to Ping An Bank Co today.