(Reuters) - Virgin America, the U.S. carrier in which Richard Branson's Virgin Group has a minority stake, has appointed Barclays and Deutsche Bank to lead an initial public offering, the Financial Times reported on Monday, citing people familiar with the situation. The carrier interviewed half a dozen banks last month as it prepares for an IPO that could come as soon as the second half of this year, the FT report said. Virgin America has been growing its network of routes and in December bought 12 takeoff and landing slots at New York's LaGuardia Airport that American Airlines gave up in return for approval of its merger with US Airways Group. The company, which appointed Intel Corp (INTC) Chief Financial Officer Stacy Smith to its board last month, posted a net income of $33.5 million for the quarter ended September 30, compared with a loss of $12.6 million a year earlier.
Even Obama's fans has turning on him: "The Decline and Fall of 'Hope and Change'" European Stocks Drop, Head for Worst January Since 2009 (BBG) Euro-Area Inflation at 0.7% Builds Rate Pressure on ECB (BBG) Japan’s Inflation Accelerates as Abe Seeks Wage Gains (BBG) Unpossible - this is the USSA: Detroit Debt Proposal Favors Pension Funds (WSJ) Keystone Report Said Likely to Disappoint Pipeline Foes (BBG) YHOO still pretending someone cares about it: Yahoo says detected hacking attempt on email accounts (Reuters) How Google's Costly Motorola Maneuver May Pay Off (WSJ) Mexico Surpassing Japan as No. 2 Auto Exporter to U.S. (BBG) Microsoft Seen Testing Insider Nadella’s Will to Revamp (BBG) Top Obama aide predicts drama-free U.S. debt ceiling increase (Reuters) The Dong fallout: Danish PM Blindsided as Ministers Quit in Goldman Spat (BBG) U.S. Says Syria Delaying Chemical Disarmament (WSJ) Emerging market funds lose $9 billion in past week (Reuters) Overnight Media Digest WSJ * Until this week, European emerging markets had largely dodged the vicious selloff that has swept through their peers elsewhere. But now they are cracking. * Big banks are beginning to loosen their tight grip on lending, creating a new opening for consumer and business borrowing that could underpin a brightening economic outlook. * Veteran Microsoft executive Satya Nadella has emerged as the leading candidate to be the software company's next CEO, as directors wrestle with the role of Chairman Bill Gates. * A potent mix of rising exports, consumer spending and business investment helped the U.S. economy end the year on solid footing. * Holiday sales lifted Amazon.com Inc's fourth-quarter revenue 20 percent over a year earlier, spurring profit but not enough to match Wall Street projections. The Seattle retailer's shares tumbled in after-hours trading on the results and a disappointing outlook for its current quarter. * Saks, under new ownership, is pushing into a higher luxury strata, but at the same time plans to expand its Off Fifth outlet stores-and muss them up a little. * Google posted a 17 percent increase in revenue and a 17 percent increase in net income in the fourth quarter compared with the prior year, one day after it announced plans to sell its unprofitable Motorola smartphone unit to Lenovo Group Inc for $2.9 billion. * Zynga Inc is making its biggest acquisition ever, pushing further into mobile videogames, while cutting its workforce for the third time in two years. FT European Union banks may have to hire more employees to cope with stress tests by regulators, accounting firm PwC said. The European Banking Authority has been conducting stress tests regularly in the past but has faced criticism for being too soft. New-home building in Britain last year hit its highest level since the financial crisis but remains far too low to meet a strong recovery in demand, according to data from the National House Building Council released on Friday. New home registrations in the UK increased by 28 percent in 2013 to 133,670, the highest since 2007. Anglo-Dutch oil company Royal Dutch Shell has suspended its controversial Arctic drilling programme as part of a wider drive to cut spending and streamline operations following a major profit warning. Zynga said it will acquire NaturalMotion, which has created games like "Clumsy Ninja" for Apple mobile devices, for $527 million in cash and stock in a bid to grow its mobile game revenue. Serco said 2014 profit could be as much as 20 percent below forecasts, a sign that the cost of rebuilding the outsourcing group from high-profile government contract failures is continuing to take its toll. NYT * While Amazon.com Inc's revenue rose 20 percent to $25.59 billion, the company announced on Thursday that it was considering raising prices by as much as 50 percent on its $79 Prime shipping program. * Microsoft's search for a new leader appears to be focusing increasingly on an internal candidate from the company, including Satya Nadella, a longtime executive who has led the company's initiatives in cloud computing. * In yet another reminder of the importance of using different passwords across different websites, Yahoo Inc said Thursday that attackers had attempted to gain access to Yahoo Mail accounts using usernames and passwords collected from a breach on a third-party site. * Lenovo Group Ltd, already the world's biggest PC maker, is a company in a hurry. It entered into a deal to buy IBM's low-end server business that will remain in demand for years, and Motorola Mobility, which makes it the trusted partner of Google. * Toyota Motor Corp has told its dealers to stop selling about 36,000 vehicles of its most popular models because a component on the heated seats does not comply with a federal safety standard for flame retardant, the automaker said on Thursday. * Goldman Sachs Group Inc's board granted its chief executive, Lloyd Blankfein, restricted shares worth $14.7 million as part of his pay package for 2013, according to a filing made public on Thursday. * Libya's sovereign investment fund has filed a lawsuit against Goldman Sachs Group Inc in London's High Court, claiming that the bank made more than $1 billion in derivatives trades that became worthless, but left Goldman with a profit of $350 million. * This year, a new kind of advertising - personalized and based on physical location down to a matter of feet - will greet fans in Times Square and MetLife Stadium, where the Super Bowl will be played this weekend. * Eight years after its inception, the biggest private equity fund in history has yet to meet its own minimum expectations. The investment performance of the fund, a $21.7 billion war chest raised by the Blackstone Group LP, remains below a threshold that it must clear in order for Blackstone to start collecting profit from it, according to a disclosure on Thursday. * As the economy shrugged off the effects of the government shutdown and debt standoff, economists said President Obama faced an uphill battle to burnish his economic legacy before leaving office. * President Obama, supported by many Republicans and business groups, has met opposition from labor and many Democrats on his push for fast-track approval of trade deals with Pacific Rim nations and Europe. * There are groundbreaking business deals. And then there are ones that threaten to break up governments. When Denmark gave the global financial giant Goldman Sachs Group Inc the go-ahead on Thursday to buy a stake in its state utility, the move was not exactly followed by a celebratory signing ceremony. * Southwest Airlines Co and JetBlue Airways Corp said on Thursday that they had bought the takeoff and landing rights at Ronald Reagan National Airport in Washington that the Justice Department required American Airlines Group Inc and US Airways Group Inc to sell as a condition of their merger. * JD.com, one of China's biggest e-commerce companies, said in a regulatory filing on Thursday it plans to raise $1.5 billion this year in an initial public offering in the United States. * Box, an online storage and document-sharing provider, has filed confidential paperwork to go public, a person briefed on the matter said on Thursday. * The video camera maker, GoPro, known for its users' adrenaline-soaked exploits has its sights set on becoming a media company. Canada THE GLOBE AND MAIL * Ontario will hike its minimum wage for the first time in four years on June 1, opening a growing gap with other provinces and territories amid an uncertain economy. Premier Kathleen Wynne will raise the wage to C$11 from C$10.25, tying Ontario with Nunavut for the highest in the country. * Canada's electronic eavesdropping agency, Communications Security Establishment Canada, reportedly tracked the wireless devices of thousands of travellers by using information gleaned from free Internet service at a major Canadian airport. The revelation is contained in a top secret document retrieved by U.S. whistleblower Edward Snowden. Reports in the business section: * Ontario is demanding the federal government do more to protect automakers in a new free-trade agreement with South Korea, arguing the deal as it currently stands would "negatively impact" the industry in the province. Economic Development Minister Eric Hoskins says he wants Ottawa to secure protections similar to ones the United States received in its own deal with South Korea in 2011. * Electronics retail giant Best Buy Canada is cutting 950 jobs at its namesake and Future Shop stores as it streamlines its business to take on tougher competition. NATIONAL POST * Toronto city council's final budget session played out much like the rest of this tumultuous term, with insults hurled across the chamber floor. In the end, Mayor Rob Ford managed to squeeze C$726,000 in immediate savings in a C$9.6-billion budget that passed 35 to 9 Thursday night, and which he ridiculed as "the worst budget that has ever been presented." FINANCIAL POST * Some of Toronto's biggest Bay Street law firms are now actively recruiting clients of Heenan Blaikie LLP as word spreads that the firm may soon take drastic action to deal with financial challenges. * As anticipation builds over the imminent release of two major reports that could seal the fate of Keystone XL pipeline, Gary Doer, Canada's ambassador to the United States, remains confident the long-delayed project is primed for presidential approval. Britain The Telegraph ZYNGA BUYS BRITISH GAME MAKER NATURALMOTION FOR $527 MILLION Zynga, which is known as much for its struggles as a public company as for its hits such as Farmville, will acquire NaturalMotion, the company behind hit mobile games such as Clumsy Ninja for $527 million. BUSINESS LENDING CHANNELS 'DAMAGED', SAYS BCC, AS NET LENDING FALLS Business lending fell in December, Bank of England data showed on Thursday, in what business groups described as proof that corporate funding channels were "damaged". Net lending to non-financial firms declined 1.9 billion pounds in December, following November's sharp drop of 4.6 billion pounds, which represented the biggest fall since records began in 2011. The Guardian SANTANDER UK STOCK MARKET FLOTATION 'WILL NOT HAPPEN IN 2014' Santander UK will await clarification on new rules relating to capital levels and the "ringfencing" of banking business before it goes ahead with a flotation of its UK arm. The long-awaited listing of the UK business - first mooted in 2010 - has been deemed a medium-term prospect by the Spanish-based bank and is not expected to take place this year. BARCLAYS TO CUT HUNDREDS OF JOBS Hundreds of jobs are being lost at Barclays under changes in its corporate banking division, it has been announced. Around 400 posts will go, and the Unite union said a further 120 were being placed at risk this year. The Times ASTRAZENECA TURNS ITS BACK ON "DISEASES OF THE POOR" AstraZeneca has abandoned any scientific effort to search for new medicines to tackle many of the world's deadliest diseases by shutting down its drug discovery work into neglected tropical diseases, tuberculosis and malaria. Britain's second-largest drugs company has decided that infectious diseases are "not a priority" as Pascal Soriot, its chief executive, cuts costs and scrambles to halt a slide in profits. SFO SEEKS 19 MILLION POUNDS EMERGENCY CASH AS TCHENGUIZ PUTS PRESSURE ON FUNDING The Serious Fraud Office has asked Parliament for an emergency cash injection of 19 million pounds in order that it can continue with blockbuster investigations and clean up bungled cases. The white collar crime-fighting agency said that it needed the money before the end of March to finance investigations into Libor-rigging, alleged bribery by Rolls-Royce in Asia and Barclays' dealings with the Qatari Government in 2008. Sky News PRODUCT GROWTH HELPS BSKYB BEAT FORECASTS Strong growth in on-demand and home communication products helped BSkyB beat City forecasts despite growing competition for pay-television viewers, the company said. SERCO SHARES DOWN 17 PERCENT ON PROFIT WARNING Troubled outsourcing firm Serco has seen its shares drop 17 percent after it issued a profit warning. The company said its 2014 profit may be 20 percent lower than market forecasts, due to implementation of a business overhaul following contract disputes with its biggest revenue stream, the UK Government Fly on The Wall 7:00 AM Market Snapshot ECONOMIC REPORTS Domestic economic reports scheduled for today include: Personal income for December reported at 8:30--consensus up 0.2% Consumer spending for December reported at 8:30--consensus up 0.2% Core PCE price index for December reported at 8:30--consensus up 0.1% Chicago PMI business barometer for January reported at 9:45--consensus 59.5 UMich consumer sentiment final read for January reported at 9:55--consensus 81.0 ANALYST RESEARCH Upgrades CSC (CSC) upgraded to Neutral from Underweight at JPMorgan Citrix (CTXS) upgraded to Overweight from Neutral at JPMorgan Computer Programs (CPSI) upgraded to Buy from Neutral at B. Riley Cracker Barrel (CBRL) upgraded to Buy from Hold at Miller Tabak Domtar (UFS) upgraded to Buy from Hold at Deutsche Bank EPL Oil & Gas (EPL) upgraded to Buy from Hold at Stifel Ericsson (ERIC) upgraded to Buy from Neutral at UBS Generac (GNRC) upgraded to Outperform from Neutral at RW Baird Gigamon (GIMO) upgraded to Overweight from Equal Weight at Barclays Glatfelter (GLT) upgraded to Buy from Hold at Deutsche Bank Hillshire Brands (HSH) upgraded to Market Perform from Underperform at Wells Fargo IDEX Corp. (IEX) upgraded to Buy from Hold at Brean Capital ITT Educational (ESI) upgraded to Equal Weight from Underweight at Morgan Stanley International Rectifier (IRF) upgraded to Buy from Neutral at Citigroup JDSU (JDSU) upgraded to Outperform from Market Perform at William Blair Linear Technology (LLTC) upgraded to Buy from Neutral at Citigroup MainSource Financial (MSFG) upgraded to Outperform from Market Perform at Raymond James Marathon Petroleum (MPC) upgraded to Outperform from In-Line at Imperial Capital Netflix (NFLX) upgraded to Equal Weight from Underweight at Morgan Stanley Newfield Exploration (NFX) upgraded to Buy from Hold at Stifel PulteGroup (PHM) upgraded to Outperform from Market Perform at Raymond James Raytheon (RTN) upgraded to Buy from Hold at Drexel Hamilton SunCoke Energy Partners (SXCP) upgraded to Outperform from Neutral at Credit Suisse Tetra Tech (TTEK) upgraded to Outperform from Neutral at RW Baird Downgrades ADT Corp. (ADT) downgraded to Hold from Buy at Stifel ADTRAN (ADTN) downgraded to Neutral from Buy at Goldman AkzoNobel (AKZOY) downgraded to Neutral from Outperform at Exane BNP Paribas CARBO Ceramics (CRR) downgraded to Sell from Neutral at Guggenheim Capstead Mortgage (CMO) downgraded to Market Perform at Keefe Bruyette Chef's Warehouse (CHEF) downgraded to Hold from Buy at Canaccord Deutsche Bank (DB) downgraded to Equal Weight from Overweight at Barclays Kennametal (KMT) downgraded to Neutral from Buy at Longbow Midstates Petroleum (MPO) downgraded to Equal Weight at Morgan Stanley Silicon Image (SIMG) downgraded to Hold from Buy at Needham TIBCO (TIBX) downgraded to Underweight from Equal Weight at Barclays Initiations AmREIT (AMRE) initiated with a Buy at SunTrust Gas Natural (EGAS) initiated with a Hold at Wunderlich Headwaters (HW) initiated with a Buy at Deutsche Bank HOT STOCKS Zynga (ZNGA) to acquire NaturalMotion for about $527M, announced 15% workforce reduction Sanofi (SNY) filed patent infringement suit in U.S. against Eli Lilly (LLY) E-Trade (ETFC) announced Jefferies (JEF) alliance, increased access to IPO, secondaries Amazon (AMZN) considering $20-$40 increase in Prime membership Broadcom (BRCM) raises quarterly dividend by 9% to 12c per share Chubb (CB) announced repurchase program of up to $1.5B of shares Wesco Aircraft (WAIR) to acquire Haas Group for $550M Chipotle (CMG) said strong traffic trend from Q4 continuing in Q1 EARNINGS Companies that beat consensus earnings expectations last night and today include: Eastman Chemical (EMN), Minerals Technologies (MTX), Reinsurance Group (RGA), PerkinElmer (PKI), Manitowoc (MTW), Symetra Financial (SYA), Emulex (ELX), JDSU (JDSU), NetSuite (N), C.R. Bard (BCR), Robert Half (RHI), Chubb (CB), Broadcom (BRCM), Zynga (ZNGA), Wynn Resorts (WYNN) Companies that missed consensus earnings expectations include: Mattel (MAT), Validus (VR), Celadon Group (CGI), Ikanos (IKAN), Green Dot (GDOT), Brightcove (BCOV), McKesson (MCK), Amazon.com (AMZN), Google (GOOG) Companies that matched consensus earnings expectations include: MICROS (MCRS), Riverbed (RVBD), Virtusa (VRTU), Chipotle (CMG), Sterling Financial (STSA) NEWSPAPERS/WEBSITES Microsoft (MSFT) preparing to name Satya Nadella CEO, may name Thompson chairman, Bloomberg reports Lenovo (LNVGY) likely to receive regulatory approval for IBM (IBM), Google deals (GOOG), Reuters reports Goldman Sachs (GS) sued by Libya's sovereign wealth fund, FT reports Rowan (RDC) battling out-of-control gas well in Gulf of Mexico, Bloomberg reports China's JD.com filed for a U.S. listing, Reuters reports Blackstone (BX) hired to consider TI Automotive IPO or sale, Reuters reports Target (TGT) representative guarded in U.S. panel briefing, Reuters reports SYNDICATE Celsus Therapeutics (CLTX) 1.126M share Secondary priced at $6.00 CytRx (CYTR) files to sell common stock EXCO Resources (XCO) files to sell 135.35M shares of common stock for holders Intra-Cellular (ITCI) 6.142M share Secondary priced at $17.50 Intrawest Resorts (SNOW) 15.625M share IPO priced at $12.00 Malibu Boats (MBUU) 7.143M share IPO priced at $14.00 Medley Capital (MCC) files to sell 6M shares of common stock Montage Technology (MONT) 5.3M share Secondary priced at $21.00 Rexnord (RXN) 15M share Secondary priced at $25.75 Rocket Fuel (FUEL) 5M share Secondary priced at $61.00 SMTP, Inc. (SMTP) 1.6M share Secondary priced at $6.25 Southcross Energy Partners (SXE) 8M share Secondary priced at $16.50 Top Image Systems (TISA) files to sell ordinary shares Trevena (TRVN) 8.5M share IPO priced at $7.00 Tsakos Energy (TNP) files to sell common stock Ultragenyx Pharmaceuticals (rare) 5.76M share IPO priced at $21.00 XPO Logistics (XPO) 15M share Secondary priced at $25.00
(Reuters) - Airlines have submitted bids seeking to purchase takeoff and landing rights at Reagan National Airport that American Airlines Group (AAL.O) is required to sell under an agreement with the U.S. government, two sources familiar with the matter said. An announcement about the sales of slots at Reagan National could be made this week, the sources said, but they did not know how many airlines had submitted bids. American Airlines Group, formed when US Airways Group and AMR Corp merged in December, declined to comment on Sunday. The merging carriers agreed to give up 52 pairs of takeoff and landing rights, or 104 slots, at Reagan National Airport located just outside Washington, as well as certain other assets under a settlement of an antitrust lawsuit by the U.S. Justice Department seeking to block their combination.
American Airlines emerged as the world's largest airline Monday, combining with US Airways after a hard-fought battle to overcome U.S. competition concerns. AMR Corporation, the parent of American Airlines, and US Airways Group announced they had completed the deal after AMR emerged from bankruptcy protection. The new American Airlines Group…
By Bret Jensen:Barron's, the noted and well-followed industry weekly published its list of favorite picks for 2014 this weekend. Last year's "Top Ten" list has returned over 35% so far this year.Making the list this year were Barrick Gold (ABX), Canadian Natural Resources (CNQ), Citigroup (C), Deere (DE), General Motors (GM), Intel (INTC), MetLife (MET), Nestle (OTCPK:NSRGY), Simon Property Group (SPG) and US Airways Group (LCC). Out of the ten selections, I find the two with the lowest forward PEs the most attractive for significant gains in 2014.Barrick Gold - Nothing went right for the world's largest gold miner (by production and reserves) in 2013. Gold prices have plunged during the year and its huge Pascua-Lama project in South America has been hit by cost overruns and setbacks. Its shares lost more than 50% in 2013 and now Barrick sells at the same price levels as a decade Complete Story »
Американский суд по делам о банкротстве одобрил $17,2-миллиардную сделку по слиянию корпорации AMR с US Airways Group, а значит, завершение сделки по созданию крупнейшей в мире авиакомпании пройдет без задержек. Стоит отметить, что слияние компаний завершится 9 декабря, в результате чего будет образована новая компания, именуемая American Airlines Group. Сообщается, что 6 декабря торги обыкновенными акциями AMR и US Airways будут проводиться последний раз.
Американский суд по делам о банкротстве одобрил $17,2-миллиардную сделку по слиянию корпорации AMR с US Airways Group, а значит, завершение сделки по созданию крупнейшей в мире авиакомпании пройдет без задержек. Стоит отметить, что слияние компаний завершится 9 декабря, в результате чего будет образована новая компания, именуемая American Airlines Group. Сообщается, что 6 декабря торги обыкновенными акциями AMR и US Airways будут проводиться последний раз.
The parent company of American Airlines on Monday asked a bankruptcy court to approve a settlement with U.S. regulators that would allow it to merge with rival US Airways Group and create the world's largest airline. Stephen Karotkin, a lawyer for AMR Corp (AAMRQ.PK), said the settlement resolving the U.S. Justice Department's antitrust objections was not opposed by any of the company's creditors. "Of the literally hundreds of thousands of creditors and shareholders - those entities with a legitimate economic interest in these cases - not one objection was filed," Karotkin said at a hearing in the U.S. Bankruptcy Court in Manhattan.
A group of consumers who have sued American Airlines' bankrupt parent over its proposed merger with US Airways Group (LCC) are now objecting to a settlement that would allow that merger to go forward. California resident Carolyn Fjord, leading a proposed class of plaintiffs in an antitrust lawsuit against the two airlines, filed court papers on Thursday in U.S. Bankruptcy Court in Manhattan, arguing that consumers would be hurt by the tie-up, which would create the world's largest airline. The DOJ had blocked the deal, which was to serve as the basis for American parent AMR Corp's (AAMRQ.PK) exit from bankruptcy. The settlement still needs bankruptcy court approval before the merger can close and AMR can exit bankruptcy.
US Airways Group Inc. and American Airlines Inc, a subsidiary of AMR Corporation got the green signal from Department of Justice
Yellen to defend Fed's ultra-easy monetary policy (Reuters) Japan growth slows on global weakness (WSJ) Eurozone third-quarter growth falters (FT) Fed Debates Its Low-Rate Peg (Hilsenrath) Yellen: Economy Still Needs Fed Aid (WSJ) ‘Obamacare’ launch fiasco rouses sceptics (FT) DoubleLine's Gundlach says U.S. equities 'only game in town' (Reuters) Indian Inflation Exceeding Estimates Adds Rate-Rise Pressure (BBG) HUD Said to Fail in Bid to Sell $450 Million of Mortgages (BBG) Boeing machinists reject labor deal on 777X by 67 percent (Reuters) Australia’s Senate Rejects Raising Debt Ceiling to A$500 Billion (BBG) ECB's Praet puts asset buying on agenda (Reuters) Default ‘Wave’ of $1.6 Trillion Looming for Junk, Fridson Says (BBG) Carney’s economic glass is half full (FT) Overnight Media Digest WSJ * The government's antitrust settlement with AMR Corp and US Airways Group Inc sets up what may be the last big land grab at major airports for some time, as the planned merger cements a new structure for the industry after a decade of bankruptcies and consolidation. * In a sign of the fervor once again rising around Internet startups, the 23-year-old CEO of a two-year-old company with no revenue has rejected a $3 billion buyout offer from Facebook . Snapchat Inc is being wooed by other investors and potential acquirers. Chinese Internet giant Tencent Holdings Ltd had offered to lead an investment that would value Snapchat at $4 billion. * Boeing's largest union rejected an eight-year contract that would have guaranteed the plane maker's updated long-range 777X jetliner and its wings would be built in unionized facilities in Puget Sound. * Crocs, famous for its colorful plastic clogs, is considering going private, its sales and stock price off their peaks. * Business owners throughout the U.S. used-smartphone market are reporting they suddenly cannot unlock old Apple iPhones. None of them knows exactly what changed, but AT&T seems to be at the center of it. * The nation's railroads are asking safety regulators to require that all existing tank cars that carry crude oil, ethanol and other flammable liquids be modified or upgraded to better withstand accidents or be "aggressively" phased out of service. * KKR and Google have struck a pact to invest about $400 million in six solar power plants being built by Recurrent Energy in California and Arizona, according to people familiar with the matter. * With thousands of debt-laden new lawyers entering the market at a time when plum jobs at big firms are in short supply, the influential New York City Bar Association is trying out some alternatives. * Fairholme Capital Management said it wants to buy parts of bailed-out mortgage-finance giants Fannie Mae and Freddie Mac from the government in a recapitalization valued at $52 billion. * Sotheby's sold a silvery Andy Warhol diptych of a man slumped amid his crumpled car, "Silver Car Crash (Double Disaster)," for $105.4 million, an auction high for the Pop artist. FT Network equipment maker Cisco Systems Inc warned that revenue would decline by as much as 10 percent in the current quarter, blaming sliding demand due to a "level of uncertainty or concern" among customers after recent revelations about internet surveillance by the U.S. National Security Agency. Two of Barclays' most senior bankers, including Britain's former top financial industry regulator Hector Sants, have resigned, dealing a blow to Chief Executive Antony Jenkins' attempts to revive the lender and restore its reputation. The Bank of England brought forward its unemployment forecast on Wednesday and said it believes the UK economy is recovering so quickly that it is likely to consider raising interest rates from their historic lows as soon as this time next year. The latest income tax bill for Starbucks Corp has been cut to zero after it was ordered on Tuesday to pay $2.7 billion to Kraft Foods for ending the companies' packaged coffee partnership early, the coffee chain revealed in its restated accounts on Wednesday. Rolls-Royce, the world's second-largest maker of aircraft engines, is preparing to use 3D printing technology to make components, in a bid to speed up production and reduce the weight of parts. Research Group CCS Insight predicted unprecedented mergers and acquisitions activity in the next two years in the technology and telecommunication sectors with a handful of large companies expected to expand their regional and global reach by 2016. NYT * A contract between JPMorgan Chase and a consulting firm run by the daughter of the former prime minister points to the bank's strategy to build its influence in China. * Snapchat, a social media service based in Venice Beach, California, has become one of the most sought-after businesses in the technology industry. * Janet L. Yellen, President Obama's choice to lead the Federal Reserve for the next four years, plans to tell senators at her confirmation hearing on Thursday that continuing the Fed's enormous stimulus campaign is the best way to revive the economy and hasten the program's end. * Just over 106,000 people picked health plans in the first month of open enrollment through the state and federal insurance marketplaces established by the Affordable Care Act, President Obama's health secretary said Wednesday, a fraction of the administration's initial estimate for enrollment during that period. * The race for consumers' dollars has prodded more retailers to open their doors on Thanksgiving, a day before the traditional start of the holiday season. * On Thursday IBM will announce that Watson, the computing system that beat all the humans on "Jeopardy!" two years ago, will be available in a form more than twice as powerful via the Internet. * Online real estate brokerage Redfin has raised $50 million in a new round of mezzanine capital, led by Tiger Global Management and T. Rowe Price. Five existing investors, including Greylock Partners and DFJ Venture Capital, also participated. * JPMorgan called off a question-and-answer session with James Lee, its vice chairman and top deal maker, after Twitter users complied with its request for queries with a stream of ribald questions and hostile jokes. * A Brazilian tour operator backed by the Carlyle Group could raise as much as 1 billion reais ($428 million) for its existing shareholders through a planned offering. * Goldman Sachs has promoted 280 executives to managing director, one step down from the brass ring of partner. Promotions are up 5 percent over last year, when the firm named 266 employees managing director. Canada THE GLOBE AND MAIL * Canada boasts world-class destinations such as the Rockies and Niagara Falls, but it's missing out on a global tourism boom, costing the economy billions of dollars a year. The number of international visitors to Canada has plunged 20 percent since 2000 even as global travel soars, according to a sobering report being released Thursday by Deloitte Canada. * Former staffers in the office of Toronto Mayor Rob Ford have alleged a series of abusive behavior by their boss, with one staffer telling police detectives the mayor drove while intoxicated, and another describing a lurid night in 2012 when there were allegations of cocaine use and a "professional escort." Reports in the business section: * Mounting competition from giant U.S. chains is forcing supermarkets to lower their prices, a trend that hit grocers Loblaw Companies Ltd and Metro Inc in their latest financial quarter. Basic commodities such as corn and sugar have also fallen this year, meaning there is virtually no inflation pressure in food to help the bottom line. * Governments in Ontario and Quebec have thrown political hurdles in front of Alberta's efforts to expand markets for its crude, launching public hearings into controversial pipeline proposals the industry regards as necessary to enable its fast-growing oil production. NATIONAL POST * With the dust barely settled on a day of tense face-offs, interrogations and intervention-like pleas to a defiant Toronto mayor, Rob Ford learned on Wednesday that he is facing a new attempt to curtail his power, as city councillors try to strip him of his ability to deal with city emergencies. * Canada and Sri Lanka traded shots on Wednesday in the build-up to the Commonwealth meeting in Colombo, which Canadian Prime Minister Stephen Harper is boycotting over Sri Lanka's human rights record. FINANCIAL POST * It's a relatively small upscale mall in Toronto's north end but the $500 million price being paid for Bayview Village is sending a strong message about the property market in Canada. Real estate prices in the right markets are still strong. * Quebec is asking companies involved in public contract bid-rigging years ago to repay the sums they overcharged or risk a civil suit. China CHINA SECURITIES JOURNAL - Some of China's provincial authorities have set dates by which state-controlled developers will exit property development, official sources said. By the end of 2013, 23 part or full state-owned Nanjing developers will complete their exit from projects. SHANGHAI SECURITIES NEWS - Shanghai Jinfeng Investment Co Ltd said its parent is in talks with real-estate developer Greenland Group on a possible restructuring deal. - Private equity firm Warburg Pincus has invested $100 million in privately-run hospital Amcare Corp, and will help it accelerate expansion over the next five years. CHINA DAILY - China and the West hold different views on human rights, said an editorial in the paper. No country has the right to impose its own perceptions of human rights upon others or use the concern as an excuse to interfere in internal affairs, it said. PEOPLE'S DAILY - An important political task for China's Communist Party is to ensure strong entrepreneurial and opportunity awareness, said a commentary in the paper which acts as the party's mouthpiece. Fly On The Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades CAE (CAE) upgraded to Outperform from Sector Perform at RBC Capital Carlyle Group (CG) upgraded to Buy from Neutral at Goldman Finish Line (FINL) upgraded to Buy from Neutral at B. Riley Invesco (IVZ) upgraded to Buy from Neutral at Goldman LifePoint Hospitals (LPNT) upgraded to Buy from Hold at Deutsche Bank Office Depot (ODP) upgraded to Buy from Underperform at BofA/Merrill PGT, Inc. (PGTI) upgraded to Outperform from Neutral at Credit Suisse Sony (SNE) upgraded to Overweight from Equal Weight at Morgan Stanley SunTrust (STI) upgraded to Outperform from Perform at Oppenheimer Zogenix (ZGNX) upgraded to Outperform from Perform at Oppenheimer Downgrades Affiliated Managers (AMG) downgraded to Neutral from Buy at Goldman Cisco (CSCO) downgraded to Hold from Buy at Deutsche Bank Fortress (FIG) downgraded to Neutral from Buy at Goldman Hercules Technology (HTGC) downgraded to Hold from Buy at Wunderlich NetEase.com (NTES) downgraded to Hold from Buy at Deutsche Bank PNC Financial (PNC) downgraded to Perform from Outperform at Oppenheimer Penn National (PENN) downgraded to Neutral from Overweight at JPMorgan Telefonica Brasil (VIV) downgraded to Neutral from Buy at Goldman WhiteHorse Finance (WHF) downgraded to Neutral from Outperform at RW Baird lululemon (LULU) downgraded to Underperform from Neutral at Sterne Agee Initiations Bright Horizons (BFAM) initiated with an Outperform at Wells Fargo Burlington Stores (BURL) initiated with a Buy at BofA/Merrill Burlington Stores (BURL) initiated with an Outperform at BMO Capital Echo Global (ECHO) initiated with an Outperform at Cowen Essent Group (ESNT) initiated with an Outperform at JMP Securities Gaming and Leisure Properties (GLPI) initiated with a Neutral at JPMorgan Heritage Oaks (HEOP) initiated with an Outperform at Keefe Bruyette International Rectifier (IRF) initiated with a Buy at Drexel Hamilton Maxim Integrated (MXIM) initiated with a Hold at Drexel Hamilton NXP Semiconductors (NXPI) initiated with a Buy at Drexel Hamilton SanDisk (SNDK) initiated with a Buy at Drexel Hamilton HOT STOCKS Fairholme Capital proposed purchase of Fannie Mae (FNMA), Freddie Mac (FMCC) MBS insurance units Eli Lilly (LLY) to invest $700M to enhance global insulin manufacturing capacity BlackBerry (BBRY) CEO: Company has significant financial strength for long-haul Boeing (BA) sees $550B market in Middle East for new airplanes Cisco (CSCO) CEO Chambers: Emerging markets more challenging than anticipated Cisco raised stock buyback program by $15B BorgWarner (BWA) announced two-for-one stock split NetApp (NTAP) said ongoing macro environment 'uncertain' EARNINGS Companies that beat consensus earnings expectations last night and today include: North American Palladium (PAL), Chimerix (CMRX), Helmerich & Payne (HP), eLong (LONG), Kinross Gold (KGC), Spark Networks (LOV), Tetra Tech (TTEK), Radiant Logistics (RLGT), SeaWorld (SEAS), Cisco (CSCO), NetApp (NTAP) Companies that missed consensus earnings expectations include: Penford (PENX), WGL Holdings (WGL), NetEase.com (NTES), Eagle Bulk Shipping (EGLE), CUI Global (CUI), American Midstream Partners (AMID), ExOne (XONE) Companies that matched consensus earnings expectations include: GasLog (GLOG), Luxfer (LXFR), Aegean Marine (ANW) NEWSPAPERS/WEBSITES KKR (KKR) and Google (GOOG) struck a deal to invest about $400M in six solar-power plants being built by Recurrent Energy LLC in California and Arizona, sources say, the Wall Street Journal reports The roaring market for IPOs has hit some speed bumps this month, with a number of deals attracting less investor enthusiasm than had been the case for much of the year. IPOs remain on track for their busiest year since the financial crisis, with bankers and investors expecting a steady stream of deals through year-end and into 2014, the Wall Street Journal reports Riverbed Technology (RVBD) is not now considering a sale, sources say, denying a media report that pushed up the technology company's stock earlier yesterday, Reuters reports Alitalia’s board approved a revised business plan, promising severe cost cuts to make the Italian airline more profitable, but that failed to convince top shareholder Air France-KLM (AFLYY), which voted against the plan, sources say, Reuters reports Google (GOOG) and Hewlett-Packard (HPQ) are stopping sales (BBY, AMZN) of the Chromebook 11 laptop after some users reported overheating power supplies, a setback for the devices that have been gaining momentum with consumers, Bloomberg reports Fed Vice Chairman Janet Yellen will testify before the Senate Banking Committee today and signal that she will carry on the central bank’s unprecedented stimulus until she sees improvement in an economy that’s operating well below potential, Bloomberg reports SYNDICATE CDW Corporation (CDW) 15M share Secondary priced at $20.50 Genesee & Wyoming (GWR) announces sale of 5.98M shares by Carlyle funds Hougton Mifflin (HMHC) 18.25M share IPO priced at $12.00 Lumos Networks (LMOS) files to sell 2.512M shares of common stock Parametric Sound (PAMT) announces $5.1M registered direct offering Sapiens (SPNS) announces proposed public offering of 5.65M shares Tandem Diabetes Care (TNDM) 8M share IPO priced at $15.00 Vertex Energy (VTNR) files to sell $8M in common stock
ATLANTA/WASHINGTON (Reuters) - Consumer advocates worry the decision to green-light another big airline merger will mean higher prices before long, even though upstart airlines will get more access to busy airports near Washington D.C. and New York as part of the deal. In the short term, the industry is waiting for the sale of takeoff and landing slots by the merging US Airways Group Inc (LCC) and AMR Corp's (AAMRQ.PK) American Airlines, a process that will take several months and be overseen by the Department of Justice. The largest airlines are expected to be barred from bidding, leaving the field open to upstarts such as JetBlue, Allegiant and Spirit, if they chose to participate. However, Delta's merger with Northwest Airlines in 2008 led to price increases of more than 10 percent on four of the routes they dominated, as well as service cuts on another route, according to research by the American Antitrust Institute.
American Airlines и US Airways Group Inc. достигли соглашения с Минюстом США, который ранее заблокировал слияние компаний, и это открывает путь для создания крупнейшей авиакомпании в мире.
Following the DoJ's 'surprising' August decision to block the $11bn merger of American and US Airways (after approving other airline mergers in the recent past), it would appear the parties have reached a settlement: *U.S. FILES PROPOSED SETTLEMENT IN AMR CASE IN FEDERAL COURT *DOJ REQUIRES US AIRWAYS, AMERICAN AIRLINES TO DIVEST FACILITIES *AIRPORT SLOTS TO BE SOLD UNDER PROCESS APPROVED BY U.S. *AMR SEES COMBINED CO OPERATING 12 FEWER DAILY DEPARTURES AT LGA *AMR SEES COMBINED CO OPERATING 44 FEWER DAILY DEPARTURES AT DCA Some of the initial details (Full statement below) include divesting slots at Laguardia and Reagan National. AMR is trading up over 25%... Via Reuters: SETTLEMENT SAYS LAGUARDIA DIVESTMENTS INCLUDE 34 SLOTS, CONSISTING OF 24 HELD BY AMR OR US AIRWAYS, AND 10 LEASED BY AMR TO SOUTHWEST AIRLINES CO SETTLEMENT SAYS REAGAN NATIONAL DIVESTMENTS INCLUDE 104 SLOTS HELD BY US AIRWAYS OR AMR, INCLUDING 16 LEASED BY AMR TO JETBLUE AIRWAYS CORP AMR Corporation And US Airways Announce Settlement With U.S. Department Of Justice And State Attorneys General Settlement Allows for Completion of Merger in December PR Newswire FORT WORTH, Texas and TEMPE, Ariz., Nov. 12, 2013 FORT WORTH, Texas and TEMPE, Ariz., Nov. 12, 2013 /PRNewswire/ -- AMR Corporation (OTCQB: AAMRQ), the parent company of American Airlines, Inc., and US Airways Group, Inc. (NYSE: LCC) today announced that the airlines have settled the litigation brought by the U.S. Department of Justice (DOJ), the States of Arizona, Florida, Michigan and Tennessee, the Commonwealths of Pennsylvania and Virginia, and the District of Columbia challenging the merger of AMR and US Airways. The companies also announced an agreement with the U.S. Department of Transportation (DOT) related to small community service from Washington Reagan National Airport (DCA). Tom Horton, chairman, president and CEO of AMR, and incoming chairman of the board of the combined company, said, "This is an important day for our customers, our people and our financial stakeholders. This agreement allows us to take the final steps in creating the new American Airlines. With a renewed spirit, we are about to create the world's leading airline that will offer, along with our oneworld^® partners, a comprehensive global network and service by the best people in the business. There is much more work ahead of us but we're energized by the challenge and look forward to competing vigorously in the ever-changing global marketplace." Doug Parker, chairman and CEO of US Airways, and incoming CEO of the combined airline, said, "This is very good news and we are grateful to all who have made it happen. In particular, we are thankful to our employees, who throughout this process continued to believe in a better future as one airline and who voiced their support passionately and consistently. We also want to thank the elected officials in the states and communities we serve, the business leaders in our hub cities, and the thousands of customers who endorsed and supported this effort. Thank you as well to the U.S. Department of Justice, the state attorneys general and the U.S. Department of Transportation. We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together." Under the terms of the settlement, the airlines will divest 52 slot pairs at Washington Reagan National Airport (DCA) and 17 slot pairs at New York LaGuardia Airport (LGA), as well as certain gates and related facilities to support service at those airports.[i] The airlines also will divest two gates and related support facilities at each of Boston Logan International Airport, Chicago O'Hare International Airport, Dallas Love Field, Los Angeles International Airport, and Miami International Airport. The divestitures will occur through a DOJ approved process following the completion of the merger. Despite the divestitures, the new American is still expected to generate more than $1 billion in annual net synergies beginning in 2015, as was estimated when the merger was announced in February. After completion of the required divestitures, the combined company expects to operate 44 fewer daily departures at DCA and 12 fewer daily departures at LGA than the approximately 290 daily DCA departures and 175 daily LGA departures that American and US Airways operate today. The divestitures required by the settlement are not expected to impact total employment at the new American. To ensure much of the service currently operated by the carriers to small- and medium-sized markets from DCA is maintained, the new American has agreed with the DOT to use all of its DCA commuter slot pairs for service to these communities. The new American intends to announce the service changes that will result from the divestitures in advance of the sale of the DCA and LGA slots, so that the airlines acquiring those slots have the opportunity to maintain service to those impacted communities. In the settlement agreement with the state Attorneys General, the new American has agreed to maintain its hubs in Charlotte, New York (Kennedy), Los Angeles, Miami, Chicago (O'Hare), Philadelphia, and Phoenix consistent with historical operations for a period of three years. In addition, with limited exceptions, for a period of five years, the new American will continue to provide daily scheduled service from one or more of its hubs to each plaintiff state airport that has scheduled daily service from either American or US Airways. A previous settlement agreement with the state of Texas will be amended to make it consistent with today's settlement. Completion of the merger remains subject to the approval of the settlements by the U.S. Bankruptcy Court, and certain other conditions. The companies now expect to complete the merger in December 2013.
Fed Anxiety Rises as QE Raises Risk of Loss With Political Cost (BBG) Iran Nuclear Deal Expected as Early as Friday (WSJ) Israel rejects mooted interim Iran nuclear deal, Kerry heads to talks (Reuters) JPMorgan Banker Backed $200 Million Madoff Loan in 2008 (BBG) Unleashing the food nazis - FDA Says Trans Fats Aren't Safe in Food (WSJ) Draghi Aggression Shows Pledges Backed by Rate Surprise (BBG) S&P Cuts France's Credit Rating by One Notch to Double-A (WSJ) S&P criticises France’s high tax rates for stifling growth (FT) Payroll Gains in U.S. Probably Cooled Amid Government Shutdown (BBG) What to Watch for in October’s Jobs Report (WSJ) US spent $2bn on furloughed workers (FT) Snowden persuaded other NSA workers to give up passwords - sources (Reuters) Reno Better Than Manhattan for Buyers Demanding Yield (BBG) Super Typhoon Haiyan Slams Philippines With Category-5 Power (BBG) Overnight Media Digest WSJ * Iran and world powers expect to announce an initial deal as early as Friday to curb Tehran's nuclear program in exchange for an easing of sanctions, a step that would mark the first breakthrough in a decade. * The FDA ruled for the first time that trans fats aren't generally considered safe in food, a sharp policy shift that could lead to banning them in baked goods and other foods. * Thousands of middle-class Syrians are trying to get to Europe's northern countries to seek asylum, but many refugees are stuck in the continent's south. * Twitter shares launched without incident Thursday, skirting the troubles that plagued rival Facebook in its debut last year and delivering the kind of hefty "pop" that investors in initial public offerings covet. * Exports rebounded sharply in October from a September slump, in a potentially positive sign for the global economic outlook. * Senators will press Janet Yellen on a number of issues during a confirmation hearing on her nomination to lead the Fed, but one likely topic is a matter over which she has no control: a key vacancy on the Fed board. * The European Central Bank's action reflects heightened worries in Europe that dangerously low inflation threatens the region's tepid economic recovery. * Gross domestic product grew at an annual rate of 2.8 percent in the third quarter, which was higher than economists expected, but consumer caution and political friction could be a drag in the coming months. * Goldman Sachs Group Inc is known as Wall Street's smartest trading firm, but a dismal third quarter has raised questions on whether the firm needs to take bold steps to right the ship. * Fairfax Financial said its partners in a $1 billion investment in smartphone maker BlackBerry include a Qatar-based sovereign wealth fund and several Canadian investment funds. FT NEW BATTLE FOLLOWS HARD ON OBAMA WIN Barack Obama returned to Washington on Wednesday after his electoral victory over Mitt Romney, braced for emergency negotiations with Congress over the budgetary impasse that threatens to send the U.S. economy back into recession. CULT OF EQUITY KILLED OFF BY PENSION FUNDS UK pension funds are holding more bonds than equities for the first time since the so-called cult of equity in the 1950s, say leading City fund managers. MISSED DEBT TARGET TOPS BRITAIN'S AGENDA Leading members of the coalition are in urgent talks about how to handle a failure to meet the government's public debt target as ministers move into the final month before the December 5 autumn statement. EU HITS BACK AT IMF OVER AUSTERITY Brussels' defence is part of an economic forecast that shows several eurozone countries - including France, Belgium and Spain - are on track to miss their EU-mandated deficit targets, meaning they may be forced to impose yet more austerity to get budgets back in line. EUROPE FEARS U.S. ENERGY GAP Europe's ability to compete against the US as a manufacturing centre is being damaged by rising energy costs as North America benefits from cheap natural shale gas, Germany's biggest companies have warned. CANTAB HITS CAPACITY AS IT BUCKS TREND Cantab Capital Partners, the Cambridge-based hedge fund set up by an astrophysicist and former Goldman Sachs partner, is to stop accepting new money after its assets under management doubled this year to $4.5 billion. EADS OFFICES RAIDED IN BRIBERY PROBE Several EADS offices in Germany were raided by German state prosecutors and police on Tuesday as part of an investigation into alleged bribes paid to smooth the sale of Eurofighter Typhoon fighter jets to Austria five years ago. PEARSON IN CONFLICT OF INTERESTS PROBE Pearson is being investigated in the UK over possible conflicts of interest within its role as both a publisher of textbooks and an issuer of academic qualifications, as regulators seek to ensure that schools buying its teaching resources do not get any unfair advantages. NORDIC GROUPS TO SLASH HEADCOUNT Three of the biggest companies in the Nordic region on Wednesday announced plans to slash thousands of jobs in a further sign that Europe's economic problems are catching up with businesses in what was perceived as a haven. NYT * The Royal Bank of Scotland agreed on Thursday to pay the U.S. Securities and Exchange Commission $153.7 million to settle charges that it misled investors into buying a risky mortgage-backed security offering, the latest move in a crackdown on mortgage practices that fueled the financial crisis. * Twitter reached a valuation of $31.7 billion as it began trading on the New York Stock Exchange on Thursday, a figure the company will have to justify by showing a profit sooner rather than later. * Federal safety investigators said they would review an accident in Tennessee in which a Tesla Model S caught fire, the third such fire in recent weeks. * Dylan Davies, a security officer hired to help protect the United States Special Mission in Benghazi, Libya, gave the FBI an account of the night that terrorists attacked the mission on Sept. 11, 2012 that contradicts a version of events he provided in a recently published book and in an interview with the CBS News program "60 Minutes." * The White House has thrown its weight behind a proposal to raise the federal minimum wage to at least $10 an hour. * Walt Disney ended its fiscal year in blockbuster style on Thursday, reporting solid growth in fourth-quarter profit, unveiling a substantial Netflix deal and savoring a stock price that has climbed 35 percent over the last 12 months. * Federal safety officials missed or ignored warning signs before four deadly crashes involving heavy trucks or intercity buses in the last year, the National Transportation Safety Board said on Thursday. * The White House on Thursday nominated Stefan Selig, a top executive at Bank of America, to a senior Commerce Department post, a rare appointment of a Wall Street banker by the Obama administration. * A combination of Canadian, American and Qatari investors are helping to finance Fairfax Financial Holding's planned $1 billion investment in struggling smartphone maker BlackBerry , a filing shows. * Salix Pharmaceuticals said Thursday that it would acquire Santarus, a maker of gastrointestinal medications like Zegerid and other specialty drugs, for $2.6 billion in cash, or $32 a share. Canada THE GLOBE AND MAIL * Canadian investors are lining up to provide 80 percent of the $1 billion in new financing for BlackBerry Ltd with Brookfield Asset Management Inc and a unit of Power Financial Corp headlining the list of institutions joining Fairfax Financial Holdings Ltd in its bet that the smartphone maker will succeed. * Federal New Democrats provoked a debate about Keystone XL pipeline on Thursday in the Commons with a motion that opposes the controversial project on the grounds that it will send oil-industry processing jobs to the United States and therefore "is not in Canada's best interests." Reports in the business section: * The introduction of new two-year cellphone contracts slowed subscriber growth for some of Canada's biggest carriers during the back-to-school season, a sign that consumers are spurning those higher-priced plans even before they become the industry standard in December. * Both of Canada's most widely traded insurers, Manulife Financial Corp and Sun Life Financial Inc, as well as Industrial Alliance Insurance beat analysts' expectations for the quarter as they reported in the last two days, while Great-West Lifeco Inc met consensus. NATIONAL POST * Veterans injured in the line of duty could soon find themselves at the front of the line when it comes to federal job openings thanks to a proposal unveiled by the Conservative government on Thursday. * U.S. investors are readying legal action against the Canadian government over Quebec's resistance to Strateco Resources Inc's Matoush uranium mining project, the company's chief executive says. FINANCIAL POST * The new interim chief executive is worth a lot to struggling BlackBerry Ltd - enough to warrant up to $3 million in yearly salary, and 13 million restricted shares. * France's Total SA is upsizing its flagship Joslyn oil sands mine in northern Alberta by at least 50 percent in a bid to spread costs thin over larger volumes, the chief executive of its Canadian arm says. China CHINA SECURITIES JOURNAL - The simulation of CSI 300 stock index options contracts trading started on Friday. The move indicates the introduction of stock index options is not far off, said unnamed sources. - China Merchants Property Development Co Ltd approved a 6.5 billion yuan ($1.07 billion) A-share financing program on Thursday. The transaction is still subject to regulatory approval. SHANGHAI SECURITIES NEWS - The reforms in China's Shanghai free trade zone could be extended nationwide after three years, said Ai Baojun, Shanghai's deputy major, on Thursday at a round table forum. SHANGHAI DAILY - In Shanghai, air pollution on Thursday rose to a PM2.5 density, nearly four times the national limit. It peaked at a hazardous level of about 270 micrograms per cubic meter, four times the national limit of 75. PEOPLE'S DAILY - Certain local authorities in China engage in protectionist behaviour, by for example issuing official documents to 'protect' local products, said the paper which acts as the mouthpiece of the Chinese government. It is important to reform this attitude in order to better develop the market, it said. Fly On The Wall 7:00 AM Market Snapshot ANALYST RESEARCH Upgrades AkzoNobel (AKZOY) upgraded to Overweight from Neutral at JPMorgan Alaska Air (ALK) upgraded to Equal Weight from Underweight at Barclays Amarin (AMRN) upgraded to Buy from Neutral at Citigroup Aspen Insurance (AHL) upgraded to Buy from Neutral at UBS BlackRock Kelso (BKCC) upgraded to Market Perform from Underperform at Wells Fargo Brandywine Realty (BDN) upgraded to Neutral from Underperform at BofA/Merrill Broadridge (BR) upgraded to Neutral from Underweight at JPMorgan Concho Resources (CXO) upgraded to Buy from Neutral at SunTrust Corporate Office Properties (OFC) upgraded to Buy from Neutral at BofA/Merrill Eastman Chemical (EMN) upgraded to Overweight from Neutral at JPMorgan Peabody Energy (BTU) upgraded to Buy from Neutral at Goldman Republic Airways (RJET) upgraded to Overweight from Equal Weight at Evercore Salix (SLXP) upgraded to Buy from Neutral at Janney Capital Scotts Miracle-Gro (SMG) upgraded to Market Perform from Underperform at BMO Capital SolarWinds (SWI) upgraded to Buy from Hold at Needham Downgrades AECOM Technology (ACM) downgraded to Neutral from Buy at UBS AVG Technologies (AVG) downgraded to Neutral from Overweight at JPMorgan Apollo Global (APO) downgraded to Neutral from Buy at Citigroup Deere (DE) downgraded to Neutral from Buy at BofA/Merrill Health Net (HNT) downgraded to Market Perform from Outperform at Wells Fargo Nationstar (NSM) downgraded to Equal Weight from Overweight at Evercore Nationstar (NSM) downgraded to Equal Weight from Overweight at Morgan Stanley Santarus (SNTS) downgraded to Neutral from Overweight at Piper Jaffray Tremor Video (TRMR) downgraded to Hold from Buy at Canaccord United Continental (UAL) downgraded to Underweight from Equal Weight at Barclays Whole Foods (WFM) downgraded to Neutral from Buy at Goldman Initiations Antero Resources (AR) initiated with a Buy at Jefferies Brinker (EAT) initiated with an Outperform at RBC Capital Burger King (BKW) initiated with a Sector Perform at RBC Capital C&J Energy (CJES) initiated with a Buy at Guggenheim CNH Industrial (CNHI) initiated with an Underperform at BofA/Merrill Chipotle (CMG) initiated with an Outperform at RBC Capital Community Health (CYH) initiated with an Outperform at FBR Capital Darden (DRI) initiated with a Sector Perform at RBC Capital Dunkin' Brands (DNKN) initiated with an Outperform at RBC Capital EchoStar (SATS) initiated with an Outperform at Raymond James HCA Holdings (HCA) initiated with an Outperform at FBR Capital Health Management (HMA) initiated with a Market Perform at FBR Capital LabCorp (LH) initiated with a Market Perform at FBR Capital LifePoint Hospitals (LPNT) initiated with a Market Perform at FBR Capital McDonald's (MCD) initiated with a Sector Perform at RBC Capital Noodles & Company (NDLS) initiated with a Sector Perform at RBC Capital Peugeot (PEUGY) initiated with a Reduce at Nomura Quest Diagnostics (DGX) initiated with a Market Perform at FBR Capital Starbucks (SBUX) initiated with an Outperform at RBC Capital Tenet Healthcare (THC) initiated with a Market Perform at FBR Capital Texas Roadhouse (TXRH) initiated with an Outperform at RBC Capital Twitter (TWTR) initiated with a Neutral at Wedbush Universal Health (UHS) initiated with an Outperform at FBR Capital Wendy's (WEN) initiated with a Sector Perform at RBC Capital Yum! Brands (YUM) initiated with an Outperform at RBC Capital HOT STOCKS UBS (UBS) paid $3.76B to buy back StabFund from Swiss National Bank S&P lowered long-term ratings on France to 'AA'; outlook stable Salix Pharmaceuticals (SLXP) to acquire Santarus (SNTS) for $32 per share in cash or $2.6B Talisman Energy (TLM) announced C$1.5B all cash sale for portion of Montney position NVIDIA (NVDA) announced additional $1B under stock repurchase plan Disney (DIS) to release next Star Wars film in December, 2015 Advanced Semiconductor (ASX) to collaborate with Infineon (IFNNY) on auto product assembly Liberty Property (LRY) to sell 97 properties for $705M Groupon (GRPN) acquired Korea’s Ticket Monster for $260M Ensign Group (ENSG) to spin-off real estate assets into REIT EARNINGS Companies that beat consensus earnings expectations last night and today include: Covidien (COV), Atwood Oceanics (ATW), Alamo Group (ALG), AVG Technologies (AVG), Molycorp (MCP), Franklin Covey (FC), NVIDIA (NVDA), Disney (DIS), CareFusion (CFN), Stifel Financial (SF), Groupon (GRPN), bebe stores (BEBE), priceline.com (PCLN), Air Lease (AL) Companies that missed consensus earnings expectations include: Atlas Resource Partners (ARP), Denison Mines (DNN), Bio-Rad (BIO), PharmAthene (PIP), Darling (DAR), Ensign Group (ENSG), Tallgrass Energy (TEP), Erickson Air-Crane (EAC), Allscripts (MDRX), Monster Beverage (MNST) Companies that matched consensus earnings expectations include: Great Plains Energy (GXP), Northern Oil and Gas (NOG), Demand Media (DMD), CTPartners (CTP) NEWSPAPERS/WEBSITES Declining sales of high-end cameras and lenses are raising an alarming question for companies like Canon (CAJ) and Nikon (NNOY): Could the proliferation of camera-enabled, app-heavy smartphones be crushing not only the simple point-and-shoot, but premium models as well? the Wall Street Journal reports Boeing (BA) warned that it could look to build its planned 777X jetliner outside Washington state, amid signs of union resistance to a proposed contract designed to keep the production work at the aerospace giant's traditional manufacturing base, the Wall Street Journal reports Coca-Cola (KO) will invest over $4B in China and build new plants between 2015 and 2017, to counter competition which is chipping away at its share of the country's $69.12B soft drinks market, Reuters reports A U.S. judge gave Southwest Airlines (LUV) permission to file a brief asking that US Airways Group (LCC) and American Airlines (AAMRQ) be required to give up take-off and landing slots at key U.S. airports should they merge, Reuters reports The longer the Federal Reserve continues its bond-buying stimulus, the higher the odds it will face a year without any money to give the Treasury after taxpayers received a record $88.4B profit in 2012, Bloomberg reports Lenovo Group (LNVGY), the largest maker of PCs, will triple the number of markets in which it sells smartphones by focusing on emerging economies where Apple’s (AAPL) iPhone is seen as too costly, Bloomberg reports SYNDICATE Addus HomeCare (ADUS) files to sell 4.95M shares of common stock for holders Boise Cascade (BCC) 7M share Secondary priced at $22.50 CST Brands (CST) 13.1M share Secondary priced at $31.00 Constellium (CSTM) 17.5M share Secondary priced at $17.00 DURECT (DRRX) files to sell common stock FalconStor (FALC) files to sell 13.17M shares of common stock for holders Sprouts Farmers Markets (SFM) files to sell 22.5M shares of common stock for holders Toll Brothers (TOL) 6.25M share Spot Secondary priced at $32.00 U.S. Silica (SLCA) files to sell 10.5M shares of common stock for holders ZELTIQ Aesthetics (ZLTQ) 4.5M share Secondary priced at $13.00
U.S. antitrust authorities want American Airlines and US Airways Group Inc (LCC) to agree to a broad package of divestitures at key U.S. airports in order to win approval of a merger that would create the world's largest air carrier, a source familiar with the matter said on Sunday. The airlines and the U.S. Justice Department have begun talks about a possible settlement ahead of a trial later this month about the government's effort to block the merger. The source, who was not authorized to speak publicly, said the two sides were discussing the possibility of the airlines giving up takeoff and landing slots at Washington's Ronald Reagan National Airport and other airports around the country. In a complaint filed in August, the Justice Department had focused on Reagan National Airport, where the two carriers control a combined 69 percent of takeoff and landing slots.
US Airways Group (LCC) and American Airlines are considering giving up takeoff and landing slots at Washington's Ronald Reagan National Airport to win regulator approval of their $11 billion merger, two people familiar with the matter said. The airlines are hoping to reach a settlement with the U.S. Justice Department before the trial, due to begin November 25, paving the way for a deal that would create the world's largest air carrier, the sources said. The companies' stock prices have climbed in anticipation of a deal, and they rose further on Wednesday after a Dow Jones report on a potential proposal to overcome regulatory concerns. American Airlines' parent company AMR Corp (AAMRQ.PK) closed up 4.3 percent at $7.30 and US Airways Group Inc ended 0.94 percent higher at $22.58.
WASHINGTON (Reuters) - US Airways Group and American Airlines are considering giving up takeoff and landing slots at Washington's Ronald Reagan National Airport to win regulator approval of their $11...