· Global stocks bounce on sign ECB could launch ABS program (Reuters)
· Putin unveils Ukraine ceasefire plan, France halts warship (Reuters)
· Poroshenko Flummoxes Investors With About-Face on Truce (BBG)
· No Free Lunch for Companies as IRS Weighs Meal Tax Rules (BBG)
· Turkey Struggles to Halt Islamic State 'Jihadist Highway' (WSJ)
· Lego Becomes World's Largest Toy Maker on Movie Success (WSJ)
· U.N. says $600 million needed to tackle Ebola as deaths top 1,900 (Reuters)
· Goldman Sachs Named 'Stabilization Agent' for Alibaba Stock Offering (WSJ)
· Computers for Hire Said to Send JPMorgan Data to Russia (BBG)
· Investment Technology Group to Launch Dark Pool for Bond Trading (WSJ)
· Britain considering arming, training Kurdish forces (Reuters)
· Suicide Every 40 Seconds Requires Prevention Measures (BBG)
· 'Humiliated' Dinesh D'Souza seeks probation after guilty plea (Reuters)
*Overnight Media Digest*
WSJ
* Russian President Vladimir Putin pushed a cease-fire deal with Ukraine that would freeze in place gains made by Russian-backed separatists, setting the stage for the kind of partitioning Moscow has used to tame other neighbors. (http://on.wsj.com/1oFMACc)
* Turkey is struggling to close a "jihadist highway" that lets foreign militants slip across its border into Syria, amid pressure from Western governments and mounting security fears at home. (http://on.wsj.com/1r4W5wk)
* Upending the U.S. senate race in Kansas, the Democratic candidate Chad Taylor has withdrawn from the contest, leaving Republican Sen. Pat Roberts with a narrowed field and a potentially formidable opponent in an independent candidate. (http://on.wsj.com/1rNAPl3)
* The football league Thursday Night Football now has huge leverage over television networks, which are increasingly looking to the NFL network to help fortify them against the rise of online video services and other threats. (http://on.wsj.com/1nZgSQQ)
* Economic activity largely picked up during the summer after hitting a soft patch at the start of the year, though the Federal Reserve's latest survey of regional conditions showed few signs of pressure on wages. (http://on.wsj.com/1oFIKca)
* Brokerage Investment Technology Group is opening an alternative trading venue for bonds in an effort to tap demand from investors to trade more cheaply and through electronic networks. (http://on.wsj.com/1nxAStT)
* Goldman Sachs Group Inc landed a coveted role in Alibaba Group Holding Ltd's upcoming initial public offering as the bank in charge of overseeing the deal's early share trading. (http://on.wsj.com/1pLjXtl)
* UK pharmaceutical giant AstraZeneca Plc pulled out all the stops to fend off a hostile takeover from Pfizer Inc earlier this year, refusing to release certain financial statements and stirring up opposition from British politicians. (http://on.wsj.com/1t1Embb)
* Less than a year after leaving office as mayor of New York City, Michael Bloomberg will return as head of Bloomberg LP, the financial data and media firm he founded and still controls, the company announced on Wednesday. (http://on.wsj.com/1r4Seze)
* Tesla Motors Inc is expected to choose a site in Nevada for its proposed up to $5 billion battery factory and could disclose the move on Thursday, according to a person familiar with the electric auto maker's plans. (http://on.wsj.com/1uB4afx)
FT
The Association of British Insurers has accused the Bank of England of driving up the cost of insurance by imposing unnecessary capital requirements on the sector.
French luxury groups Hermes International SCA and LVMH reached a truce in a four-year dispute that began when LVMH began accumulating a large stake in its smaller rival.
British airline Virgin Atlantic is to beef up its core transatlantic services and stop flying to Tokyo, Mumbai, Vancouver and Cape Town, to help it try to reach a level of profitability.
Spirit Pub Company Plc, known for its pubs such as Chef & Brewer, Fayre & Square and Flaming Grill, will next month provide details regarding plans to add 400 pubs to its portfolio.
Anglo-Dutch business information provider Reed Elsevier Plc has offered to buy FircoSoft for 150 million euros ($197.24 million) marking the company's biggest acquisition till date.
NYT
* Michael Bloomberg told close confidants and senior executives of Bloomberg LP, a financial data and media company, that Daniel Doctoroff, its chief executive and a longtime friend and lieutenant, would leave the company at the end of the year and that he would take over. He has decided to reassume the leadership of his business empire only eight months after ending his final term as mayor of New York. (http://nyti.ms/1unfwEM)
* Stefan Green, formerly of Goldman Sachs Group Inc, has joined Perella Weinberg Partners as a partner. He will be based in San Francisco and will focus on providing strategic and financial advice to technology, media and telecommunications companies. (http://nyti.ms/1lIRe7W)
* Samsung Electronics Co Ltd is doubling down on big phones and clever design, announcing on Wednesday two new versions of its popular Note 4, one of which includes a unique curved design and features two separate touch screens. (http://nyti.ms/YcY9LZ)
* Federal regulators announced on Wednesday an overhaul of a murky Wall Street market that gained infamy during the financial crisis of 2008. The Federal Reserve and the Office of the Comptroller of the Currency, as well as three other agencies, proposed a rule that would apply to over-the-counter derivatives, the financial instruments that banks and other financial entities use to speculate or hedge their risks. (http://nyti.ms/1A7W6UQ)
* The governor of Nevada and Tesla Motors Inc, the electric car company with gigantic ambitions, will be "making an affirmative announcement" on Thursday about the construction of a huge battery factory, a person involved in the negotiations said on Wednesday. (http://nyti.ms/1Bcw71d)
* Though battered by the recall of millions of vehicles and revelations that it failed to fix a deadly defect in its ignition switches, General Motors Co maintained a monthly winning streak in selling vehicles since March. (http://nyti.ms/1rNw36T)
* A lawyer for Detroit city on Wednesday urged a judge to approve its blueprint for shedding $7 billion of its debts and devoting about $1.5 billion toward restoring city services over the next decade, describing the plan to emerge from bankruptcy as Detroit's "last, best chance" for a comeback. (http://nyti.ms/1A7X7wj)
Canada
THE GLOBE AND MAIL
** Manulife Financial Corp is acquiring the Canadian operations of Britain's Standard Life Plc in a C$4-billion deal that builds both insurers' wealth businesses and boosts Manulife's presence in Quebec. (bit.ly/1vQZpCg)
** Premier Christy Clark wants British Columbia teachers to suspend their strike and return to the bargaining table - though her attempt to bridge the divide was quickly rebuffed, and a comment about teachers' massage-benefit demands only drew the union's ire. Clark said teachers need to come to the table with a realistic proposal. (bit.ly/1oGz5SF)
** Stephen Holyday, the son of former Toronto deputy mayor Doug Holyday, is putting his name on the ballot for the seat once held by his father in Ward 3. Holyday, a manager with the Ontario Ministry of Energy and a long-time Etobicoke resident, registered on Wednesday. (bit.ly/1unpm9w)
NATIONAL POST
** Canadian engineering firm WSP Global Inc is buying New York City-based infrastructure specialist Parsons Brinckerhoff in a potentially transformative $1.35 billion deal as it pushes to bulk up amid continued industry consolidation. (bit.ly/1qqnAE7)
** The Nova Scotia government will introduce a legislation this fall to prohibit high-volume hydraulic fracturing for onshore shale gas. The ban is not directed at offshore energy developments. (bit.ly/1CsWOjz)
** Doctors at a major Toronto hospital, Sunnybrook Health Sciences Centre, violated the law by unilaterally imposing a do-not-resuscitate order on an elderly patient against his family's wishes, an appeal board has ruled in an extraordinary clash over end-of-life care. Douglas DeGuerre died from cardiac arrest, as his daughter, Joy Wawryzyniak, frantically tried to convince medical staff to save him, and health workers declined to help the severely ill war veteran. (bit.ly/1qqmd8v)
** Antonio Accurso, the construction magnate at the center of corruption and collusion allegations in Quebec, acknowledged Wednesday two members of the Rizzuto crime family were among the contacts he amassed over his decades in business.(bit.ly/1CsTViW)
Hong KongSOUTH CHINA MORNING POST
- Occupy Central co-founder Benny Tai Yiu-ting came out fighting on Wednesday after he shocked many with his pessimistic assessment of the pro-democracy movement in an interview. Tai said he was confident that as many as 10,000 people would join the upcoming mass sit-in in Central, a day after he suggested that public support for Occupy was waning. (http://bit.ly/1nwAImP)
- Hong Kong retained its seventh-place ranking for a second year in the annual Global Competitiveness Index released by the World Economic Forum, with middling scores on education and innovation preventing it from rising higher. (http://bit.ly/1lADBaw)
- Technology giant Apple is expected to provide a boost to exports from the mainland and Taiwan after the company's newest iPhone is launched next week. The release of iPhone 6 could add 1 percentage point a month to the mainland's export growth for the rest of this year, said a report by Bank of America Merrill Lynch. (http://bit.ly/1pKMVtu)
THE STANDARD
- Hong Kong construction contractor New Concepts opens its retail book on Thursday seeking to raise up to HK$90 million ($11.6 million) in an initial public offering to fund acquisition of machinery and equipment, and for hiring more staff. (http://bit.ly/1w832Rz)
- Luxury projects Kensington Hill and One South Lane were unveiled in west Hong Kong Island, priced about 10 percent higher than the prevailing market prices in the area. Wheelock Properties priced its first batch of 30 units of Kensington Hill at an average HK$23,572 ($3,041.55) per sellable square foot. (http://bit.ly/We5RnB)
- Shenguan Holdings, a mainland-based sausage-casing maker, has been accused by short-seller Emerson Analytics of exaggerating revenue and concealing high costs of raw materials. (http://bit.ly/We6eym)
HONG KONG ECONOMIC JOURNAL
- Chinese sportswear firm 361 Degrees International Ltd said it has teamed up with Baidu Inc's Baidu Times to jointly develop digitally enhanced sports products, including children's "Smart Shoes" equipped with GPS and pedometer functions.
HONG KONG ECONOMIC TIMES
- Headwear products maker Mainland Headwear Holdings Ltd expects orders for its Bangladesh factories to increase early next year as the facilities continue to expand, while wages there are only one-tenth of those in China with ample labour supply, according to deputy chairman Pauline Ngan.
MING PAO DAILY NEWS
- China Unicom said the China Banking Regulatory Commission has approved its plan to team up with the China Merchants Bank- controlled Wing Lung Bank to jointly develop online financial services on the mainland. The registered capital of the venture will amount to 2 billion yuan ($326 million).
Britain
The Times
REED ELSEVIER PAYS 120 MLN STG FOR SANCTIONS MONITOR
Reed Elsevier Plc has made its largest acquisition in three years, snapping up a French software company that monitors financial transactions to check that they are not breaching economic sanctions. (thetim.es/Z7ByR4)
DICKSON ON VIRGIN BOARD WITH FLOAT IN SIGHT
Olivia Dickson, a former JPMorgan banker, has joined Virgin Money (IPO-VMH.L) as a non-executive director, adding to speculation that the bank is sprucing itself up for a flotation within months. (thetim.es/1pnJi6x)
The Guardian
ZALANDO ONLINE FASHION GIANT VALUED AT UP TO 6 BLN EUROS IN FRANKFURT FLOAT
Zalando, Europe's biggest online fashion store, is planning to raise 500 million euros ($657.40 million) to fund expansion with a public listing on the Frankfurt stock exchange, which could value the firm at up to 6 billion euros. (bit.ly/1pIS2u0)
ROYAL MAIL SELL-OFF HELPS HARGREAVES LANSDOWN MAKE RECORD PROFITS
The founders of Hargreaves Lansdown Plc have reaped more than 68 million pounds in annual dividends after Royal Mail Plc's flotation boosted business at the investment company. (bit.ly/1pKl7W0)
The Telegraph
SCOTTISH 'YES' VOTE COULD CAUSE EUROZONE-STYLE CURRENCY CRISIS, GOLDMAN SACHS WARNS
Goldman Sachs has warned that the United Kingdom could fall into a eurozone-style crisis if Scotland votes for independence later this month. The Wall Street bank said a "Yes" vote on Sept. 18 "could have severe consequences" for both the Scottish economy and the United Kingdom overall. (bit.ly/1lyZZ40)
DOES BALFOUR'S SALE OF U.S. BUSINESS MEAN A CARILLION MERGER WILL NEVER HAPPEN?
Balfour Beatty Plc has sold its U.S. consultancy business Parsons Brinckerhoff for 820 million pounds, dealing a blow to a possible resurrection of Carillion Plc's 3 billion pounds merger with its British rival. (bit.ly/1qyXjCv)
Sky News
NPOWER ESCAPES SANCTION AS BILL PROBLEMS EASE
Energy regulator Ofgem says it will not be taking immediate action against nPower Ltd as it has met its initial targets to resolve a late-billing issue that affected customers. (bit.ly/1lIufdc)
ARMY PLACES 3.5 BLN STG ORDER FOR NEW ARMOURED VEHICLES WITH GENERAL DYNAMICS
The British Army is to get 589 armoured vehicles after the Ministry of Defence agreed a 3.5 billion pounds deal with U.S. defence firm General Dynamics Corp that will support 1,300 UK jobs. (bit.ly/1pqby8B)
The Independent
LVMH AND HERMES SETTLE FOUR-YEAR DISPUTE
French luxury groups Hermes International SCA and LVMH reached a truce in a four-year dispute that began when LVMH began accumulating a large stake in its smaller rival. (ind.pn/1A5HSE6)
TREASURY COMPLAINS OF BRAIN DRAIN TO BETTER-PAYING BANK AND HMRC
The Treasury's top mandarin has blamed higher salaries offered by the Bank of England and Her Majesty's Revenue and Customs for the finance department's chronic difficulties in holding on to promising employees. (ind.pn/1vM8pIR)
*Fly On The Wall Pre-Market Buzz*
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
ADP employment change for August at 8:15--consensus 220K
Jobless claims for week of August 30 at 8:30--consensus 300K
International trade balance for July at 8:30--consensus is ($42.3B)
Nonfarm productivity for Q2 at 8:30--consensus up 2.4%
Unit labor costs for Q2 at 8:30--consensus up 0.5%
Markit services PMI for August at 9:45--consensus 58.5
ISM non-manufacturing index for August at 10:00--consensus 57.5
ANALYST RESEARCH
Upgrades
D.R. Horton (DHI) upgraded to Buy from Neutral at UBS
IAC (IACI) upgraded to Overweight from Equal Weight at Barclays
Imperial Tobacco (ityby) upgraded to Outperform from Underperform at Exane BNP Paribas
Infinity upgraded to Outperform from Market Perform at JMP Securities
Downgrades
3D Systems (DDD) downgraded to Sector Perform from Outperform at Pacific Crest
BASF (BASFY) downgraded to Underperform from Neutral at Credit Suisse
British American Tobacco (BTI) downgraded to Neutral at Exane BNP Paribas
Essex Property Trust (ESS) downgraded to Neutral from Buy at UBS
GoPro (GPRO) downgraded to Neutral from Overweight at JPMorgan
Informatica (INFA) downgraded to Equal Weight from Overweight at Barclays
Ironwood (IRWD) downgraded to Market Perform from Outperform at Cowen
Norwegian Cruise Line (NCLH) downgraded to Neutral from Buy at Goldman
Tangoe (TNGO) downgraded to Equal Weight from Overweight at Barclays
Teradata (TDC) downgraded to Equal Weight from Overweight at Barclays
Initiations
ANSYS (ANSS) initiated with an Equal Weight at Barclays
American Realty (ARCP) initiated with a Market Perform at Wells Fargo
Annie's (BNNY) initiated with an Outperform at Oppenheimer
Ball Corp. (BLL) initiated with a Market Perform at BMO Capital
Bemis (BMS) initiated with a Market Perform at BMO Capital
Berry Plastics (BERY) initiated with a Market Perform at BMO Capital
Boulder Brands (BDBD) initiated with an Outperform at Oppenheimer
Crown Holdings (CCK) initiated with an Outperform at BMO Capital
Domtar (UFS) initiated with an Outperform at BMO Capital
Enservco (ENSV) initiated with a Buy at Maxim
Foot Locker (FL) initiated with a Buy at Jefferies
Glatfelter (GLT) initiated with a Market Perform at BMO Capital
Graphic Packaging (GPK) initiated with an Outperform at BMO Capital
Greif (GEF) initiated with a Market Perform at BMO Capital
International Paper (IP) initiated with a Market Perform at BMO Capital
LTC Properties (LTC) initiated with a Buy at Mizuho
Louisiana-Pacific (LPX) initiated with an Outperform at BMO Capital
National General (NGHC) initiated with an Outperform at JMP Securities
National Health Investors (NHI) initiated with a Neutral at Mizuho
Owens-Illinois (OI) initiated with an Outperform at BMO Capital
Packaging Corp. (PKG) initiated with an Outperform at BMO Capital
Plum Creek Timber (PCL) initiated with a Market Perform at BMO Capital
RadiSys (RSYS) initiated with a Buy at DA Davidson
Rayonier (RYN) initiated with a Market Perform at BMO Capital
RockTenn (RKT) initiated with a Market Perform at BMO Capital
Sealed Air (SEE) initiated with an Outperform at BMO Capital
Silgan Holdings (SLGN) initiated with a Market Perform at BMO Capital
Sonoco (SON) initiated with a Market Perform at BMO Capital
TripAdvisor (TRIP) initiated with a Fair Value at CRT Capital
Vertex Energy (VTNR) initiated with an Outperform at Imperial Capital
Weyerhaeuser (WY) initiated with an Outperform at BMO Capital
WhiteWave Foods (WWAV) initiated with an Outperform at Oppenheimer
COMPANY NEWS
Johnson & Johnson (JNJ) to fast-track development of Ebola combination vaccine regimen
Yum! Brands (YUM) forecast China division SSS for Q3 down 13% vs. prior year
TIBCO (TIBX) announced that its board will review strategic alternatives
Teledyne (TDY) said it will acquire Bolt Technology (BOLT) for $22 per share in cash Teledyne also entered into a $100M accelerated share repurchase agreement
Morgans Hotel (MHGC) disclosed that the special transaction committee has directed Morgan Stanley (MS) to reach out to possible counterparties regarding their interest in potential transactions that could provide Morgans an opportunity to maximize value for its stockholders
Costco (COST) reported August SSS up 7%
PG&E (PCG) said it plans to appeal $1.4B fine by CPUC
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Methode Electronics (MEI), Dominion Diamond (DDC), ABM Industries (ABM), PVH Corp. (PVH), Christopher & Banks (CBK), Bazaarvoice (BV), LightPath (LPTH)
Companies that missed consensus earnings expectations include:
Descartes Systems (DSGX), Joy Global (JOY), Matrix Service (MTRX), AeroVironment (AVAV), Mitcham Industries (MIND), Iteris (ITI), Shoe Carnival (SCVL)
Companies that matched consensus earnings expectations include:
H&R Block (HRB)
NEWSPAPERS/WEBSITES
Home Depot (HD) data breach involves nearly all U.S. stores, Krebs reports
Ichan exits Family Dollar (FDO) position with $200M profit, Reuters reports
Symantec (SYMC), FishNet enlisted by Home Depot (HD) for breach probe, Bloomberg says
Tesla (TSLA) picks Nevada for gigafactory, WSJ reports
Goldman (GS) overseeing early share trading in Alibaba (BABA) IPO, Reuters reports
MetLife (MET) to meet with regulators to decide if 'too big to fail,' NY Post reports
Gannett's (GCI) USA Today cuts 70 employees, WSJ reports
Toll Brothers (TOL) looks unattractive, Barron's says
SYNDICATE
Allison Transmission (ALSN) sells 5.39M shares by holders
Arlington Asset Investment (AI) offers 2.75M shares of Class A common stock
Buckeye Partners (BPL) 6.75M share Secondary priced at $80.00
Chesapeake Lodging (CHSP) announces offering of 4.2M common shares
Memorial Production (MEMP) offers 13M common units
Northstar Realty (NRF) files to sell 45M shares with a foward component
Pebblebrook Hotel (PEB) files to sell 3M shares of common stock
Summit Midstream (SMLP) offers 4M common units owned by SMP Holdings
Sunoco Logistics (SXL) files to sell $1B common units Reported by Zero Hedge 2 days ago.
· Putin unveils Ukraine ceasefire plan, France halts warship (Reuters)
· Poroshenko Flummoxes Investors With About-Face on Truce (BBG)
· No Free Lunch for Companies as IRS Weighs Meal Tax Rules (BBG)
· Turkey Struggles to Halt Islamic State 'Jihadist Highway' (WSJ)
· Lego Becomes World's Largest Toy Maker on Movie Success (WSJ)
· U.N. says $600 million needed to tackle Ebola as deaths top 1,900 (Reuters)
· Goldman Sachs Named 'Stabilization Agent' for Alibaba Stock Offering (WSJ)
· Computers for Hire Said to Send JPMorgan Data to Russia (BBG)
· Investment Technology Group to Launch Dark Pool for Bond Trading (WSJ)
· Britain considering arming, training Kurdish forces (Reuters)
· Suicide Every 40 Seconds Requires Prevention Measures (BBG)
· 'Humiliated' Dinesh D'Souza seeks probation after guilty plea (Reuters)
*Overnight Media Digest*
WSJ
* Russian President Vladimir Putin pushed a cease-fire deal with Ukraine that would freeze in place gains made by Russian-backed separatists, setting the stage for the kind of partitioning Moscow has used to tame other neighbors. (http://on.wsj.com/1oFMACc)
* Turkey is struggling to close a "jihadist highway" that lets foreign militants slip across its border into Syria, amid pressure from Western governments and mounting security fears at home. (http://on.wsj.com/1r4W5wk)
* Upending the U.S. senate race in Kansas, the Democratic candidate Chad Taylor has withdrawn from the contest, leaving Republican Sen. Pat Roberts with a narrowed field and a potentially formidable opponent in an independent candidate. (http://on.wsj.com/1rNAPl3)
* The football league Thursday Night Football now has huge leverage over television networks, which are increasingly looking to the NFL network to help fortify them against the rise of online video services and other threats. (http://on.wsj.com/1nZgSQQ)
* Economic activity largely picked up during the summer after hitting a soft patch at the start of the year, though the Federal Reserve's latest survey of regional conditions showed few signs of pressure on wages. (http://on.wsj.com/1oFIKca)
* Brokerage Investment Technology Group is opening an alternative trading venue for bonds in an effort to tap demand from investors to trade more cheaply and through electronic networks. (http://on.wsj.com/1nxAStT)
* Goldman Sachs Group Inc landed a coveted role in Alibaba Group Holding Ltd's
* UK pharmaceutical giant AstraZeneca Plc pulled out all the stops to fend off a hostile takeover from Pfizer Inc earlier this year, refusing to release certain financial statements and stirring up opposition from British politicians. (http://on.wsj.com/1t1Embb)
* Less than a year after leaving office as mayor of New York City, Michael Bloomberg will return as head of Bloomberg LP, the financial data and media firm he founded and still controls, the company announced on Wednesday. (http://on.wsj.com/1r4Seze)
* Tesla Motors Inc is expected to choose a site in Nevada for its proposed up to $5 billion battery factory and could disclose the move on Thursday, according to a person familiar with the electric auto maker's plans. (http://on.wsj.com/1uB4afx)
FT
The Association of British Insurers has accused the Bank of England of driving up the cost of insurance by imposing unnecessary capital requirements on the sector.
French luxury groups Hermes International SCA and LVMH reached a truce in a four-year dispute that began when LVMH began accumulating a large stake in its smaller rival.
British airline Virgin Atlantic is to beef up its core transatlantic services and stop flying to Tokyo, Mumbai, Vancouver and Cape Town, to help it try to reach a level of profitability.
Spirit Pub Company Plc, known for its pubs such as Chef & Brewer, Fayre & Square and Flaming Grill, will next month provide details regarding plans to add 400 pubs to its portfolio.
Anglo-Dutch business information provider Reed Elsevier Plc has offered to buy FircoSoft for 150 million euros ($197.24 million) marking the company's biggest acquisition till date.
NYT
* Michael Bloomberg told close confidants and senior executives of Bloomberg LP, a financial data and media company, that Daniel Doctoroff, its chief executive and a longtime friend and lieutenant, would leave the company at the end of the year and that he would take over. He has decided to reassume the leadership of his business empire only eight months after ending his final term as mayor of New York. (http://nyti.ms/1unfwEM)
* Stefan Green, formerly of Goldman Sachs Group Inc, has joined Perella Weinberg Partners as a partner. He will be based in San Francisco and will focus on providing strategic and financial advice to technology, media and telecommunications companies. (http://nyti.ms/1lIRe7W)
* Samsung Electronics Co Ltd is doubling down on big phones and clever design, announcing on Wednesday two new versions of its popular Note 4, one of which includes a unique curved design and features two separate touch screens. (http://nyti.ms/YcY9LZ)
* Federal regulators announced on Wednesday an overhaul of a murky Wall Street market that gained infamy during the financial crisis of 2008. The Federal Reserve and the Office of the Comptroller of the Currency, as well as three other agencies, proposed a rule that would apply to over-the-counter derivatives, the financial instruments that banks and other financial entities use to speculate or hedge their risks. (http://nyti.ms/1A7W6UQ)
* The governor of Nevada and Tesla Motors Inc, the electric car company with gigantic ambitions, will be "making an affirmative announcement" on Thursday about the construction of a huge battery factory, a person involved in the negotiations said on Wednesday. (http://nyti.ms/1Bcw71d)
* Though battered by the recall of millions of vehicles and revelations that it failed to fix a deadly defect in its ignition switches, General Motors Co maintained a monthly winning streak in selling vehicles since March. (http://nyti.ms/1rNw36T)
* A lawyer for Detroit city on Wednesday urged a judge to approve its blueprint for shedding $7 billion of its debts and devoting about $1.5 billion toward restoring city services over the next decade, describing the plan to emerge from bankruptcy as Detroit's "last, best chance" for a comeback. (http://nyti.ms/1A7X7wj)
Canada
THE GLOBE AND MAIL
** Manulife Financial Corp is acquiring the Canadian operations of Britain's Standard Life Plc in a C$4-billion deal that builds both insurers' wealth businesses and boosts Manulife's presence in Quebec. (bit.ly/1vQZpCg)
** Premier Christy Clark wants British Columbia teachers to suspend their strike and return to the bargaining table - though her attempt to bridge the divide was quickly rebuffed, and a comment about teachers' massage-benefit demands only drew the union's ire. Clark said teachers need to come to the table with a realistic proposal. (bit.ly/1oGz5SF)
** Stephen Holyday, the son of former Toronto deputy mayor Doug Holyday, is putting his name on the ballot for the seat once held by his father in Ward 3. Holyday, a manager with the Ontario Ministry of Energy and a long-time Etobicoke resident, registered on Wednesday. (bit.ly/1unpm9w)
NATIONAL POST
** Canadian engineering firm WSP Global Inc is buying New York City-based infrastructure specialist Parsons Brinckerhoff in a potentially transformative $1.35 billion deal as it pushes to bulk up amid continued industry consolidation. (bit.ly/1qqnAE7)
** The Nova Scotia government will introduce a legislation this fall to prohibit high-volume hydraulic fracturing for onshore shale gas. The ban is not directed at offshore energy developments. (bit.ly/1CsWOjz)
** Doctors at a major Toronto hospital, Sunnybrook Health Sciences Centre, violated the law by unilaterally imposing a do-not-resuscitate order on an elderly patient against his family's wishes, an appeal board has ruled in an extraordinary clash over end-of-life care. Douglas DeGuerre died from cardiac arrest, as his daughter, Joy Wawryzyniak, frantically tried to convince medical staff to save him, and health workers declined to help the severely ill war veteran. (bit.ly/1qqmd8v)
** Antonio Accurso, the construction magnate at the center of corruption and collusion allegations in Quebec, acknowledged Wednesday two members of the Rizzuto crime family were among the contacts he amassed over his decades in business.(bit.ly/1CsTViW)
Hong KongSOUTH CHINA MORNING POST
- Occupy Central co-founder Benny Tai Yiu-ting came out fighting on Wednesday after he shocked many with his pessimistic assessment of the pro-democracy movement in an interview. Tai said he was confident that as many as 10,000 people would join the upcoming mass sit-in in Central, a day after he suggested that public support for Occupy was waning. (http://bit.ly/1nwAImP)
- Hong Kong retained its seventh-place ranking for a second year in the annual Global Competitiveness Index released by the World Economic Forum, with middling scores on education and innovation preventing it from rising higher. (http://bit.ly/1lADBaw)
- Technology giant Apple is expected to provide a boost to exports from the mainland and Taiwan after the company's newest iPhone is launched next week. The release of iPhone 6 could add 1 percentage point a month to the mainland's export growth for the rest of this year, said a report by Bank of America Merrill Lynch. (http://bit.ly/1pKMVtu)
THE STANDARD
- Hong Kong construction contractor New Concepts opens its retail book on Thursday seeking to raise up to HK$90 million ($11.6 million) in an initial public offering to fund acquisition of machinery and equipment, and for hiring more staff. (http://bit.ly/1w832Rz)
- Luxury projects Kensington Hill and One South Lane were unveiled in west Hong Kong Island, priced about 10 percent higher than the prevailing market prices in the area. Wheelock Properties priced its first batch of 30 units of Kensington Hill at an average HK$23,572 ($3,041.55) per sellable square foot. (http://bit.ly/We5RnB)
- Shenguan Holdings, a mainland-based sausage-casing maker, has been accused by short-seller Emerson Analytics of exaggerating revenue and concealing high costs of raw materials. (http://bit.ly/We6eym)
HONG KONG ECONOMIC JOURNAL
- Chinese sportswear firm 361 Degrees International Ltd said it has teamed up with Baidu Inc's Baidu Times to jointly develop digitally enhanced sports products, including children's "Smart Shoes" equipped with GPS and pedometer functions.
HONG KONG ECONOMIC TIMES
- Headwear products maker Mainland Headwear Holdings Ltd expects orders for its Bangladesh factories to increase early next year as the facilities continue to expand, while wages there are only one-tenth of those in China with ample labour supply, according to deputy chairman Pauline Ngan.
MING PAO DAILY NEWS
- China Unicom said the China Banking Regulatory Commission has approved its plan to team up with the China Merchants Bank- controlled Wing Lung Bank to jointly develop online financial services on the mainland. The registered capital of the venture will amount to 2 billion yuan ($326 million).
Britain
The Times
REED ELSEVIER PAYS 120 MLN STG FOR SANCTIONS MONITOR
Reed Elsevier Plc has made its largest acquisition in three years, snapping up a French software company that monitors financial transactions to check that they are not breaching economic sanctions. (thetim.es/Z7ByR4)
DICKSON ON VIRGIN BOARD WITH FLOAT IN SIGHT
Olivia Dickson, a former JPMorgan banker, has joined Virgin Money (IPO-VMH.L) as a non-executive director, adding to speculation that the bank is sprucing itself up for a flotation within months. (thetim.es/1pnJi6x)
The Guardian
ZALANDO ONLINE FASHION GIANT VALUED AT UP TO 6 BLN EUROS IN FRANKFURT FLOAT
Zalando, Europe's biggest online fashion store, is planning to raise 500 million euros ($657.40 million) to fund expansion with a public listing on the Frankfurt stock exchange, which could value the firm at up to 6 billion euros. (bit.ly/1pIS2u0)
ROYAL MAIL SELL-OFF HELPS HARGREAVES LANSDOWN MAKE RECORD PROFITS
The founders of Hargreaves Lansdown Plc have reaped more than 68 million pounds in annual dividends after Royal Mail Plc's flotation boosted business at the investment company. (bit.ly/1pKl7W0)
The Telegraph
SCOTTISH 'YES' VOTE COULD CAUSE EUROZONE-STYLE CURRENCY CRISIS, GOLDMAN SACHS WARNS
Goldman Sachs has warned that the United Kingdom could fall into a eurozone-style crisis if Scotland votes for independence later this month. The Wall Street bank said a "Yes" vote on Sept. 18 "could have severe consequences" for both the Scottish economy and the United Kingdom overall. (bit.ly/1lyZZ40)
DOES BALFOUR'S SALE OF U.S. BUSINESS MEAN A CARILLION MERGER WILL NEVER HAPPEN?
Balfour Beatty Plc has sold its U.S. consultancy business Parsons Brinckerhoff for 820 million pounds, dealing a blow to a possible resurrection of Carillion Plc's 3 billion pounds merger with its British rival. (bit.ly/1qyXjCv)
Sky News
NPOWER ESCAPES SANCTION AS BILL PROBLEMS EASE
Energy regulator Ofgem says it will not be taking immediate action against nPower Ltd as it has met its initial targets to resolve a late-billing issue that affected customers. (bit.ly/1lIufdc)
ARMY PLACES 3.5 BLN STG ORDER FOR NEW ARMOURED VEHICLES WITH GENERAL DYNAMICS
The British Army is to get 589 armoured vehicles after the Ministry of Defence agreed a 3.5 billion pounds deal with U.S. defence firm General Dynamics Corp that will support 1,300 UK jobs. (bit.ly/1pqby8B)
The Independent
LVMH AND HERMES SETTLE FOUR-YEAR DISPUTE
French luxury groups Hermes International SCA and LVMH reached a truce in a four-year dispute that began when LVMH began accumulating a large stake in its smaller rival. (ind.pn/1A5HSE6)
TREASURY COMPLAINS OF BRAIN DRAIN TO BETTER-PAYING BANK AND HMRC
The Treasury's top mandarin has blamed higher salaries offered by the Bank of England and Her Majesty's Revenue and Customs for the finance department's chronic difficulties in holding on to promising employees. (ind.pn/1vM8pIR)
*Fly On The Wall Pre-Market Buzz*
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
ADP employment change for August at 8:15--consensus 220K
Jobless claims for week of August 30 at 8:30--consensus 300K
International trade balance for July at 8:30--consensus is ($42.3B)
Nonfarm productivity for Q2 at 8:30--consensus up 2.4%
Unit labor costs for Q2 at 8:30--consensus up 0.5%
Markit services PMI for August at 9:45--consensus 58.5
ISM non-manufacturing index for August at 10:00--consensus 57.5
ANALYST RESEARCH
Upgrades
D.R. Horton (DHI) upgraded to Buy from Neutral at UBS
IAC (IACI) upgraded to Overweight from Equal Weight at Barclays
Imperial Tobacco (ityby) upgraded to Outperform from Underperform at Exane BNP Paribas
Infinity upgraded to Outperform from Market Perform at JMP Securities
Downgrades
3D Systems (DDD) downgraded to Sector Perform from Outperform at Pacific Crest
BASF (BASFY) downgraded to Underperform from Neutral at Credit Suisse
British American Tobacco (BTI) downgraded to Neutral at Exane BNP Paribas
Essex Property Trust (ESS) downgraded to Neutral from Buy at UBS
GoPro (GPRO) downgraded to Neutral from Overweight at JPMorgan
Informatica (INFA) downgraded to Equal Weight from Overweight at Barclays
Ironwood (IRWD) downgraded to Market Perform from Outperform at Cowen
Norwegian Cruise Line (NCLH) downgraded to Neutral from Buy at Goldman
Tangoe (TNGO) downgraded to Equal Weight from Overweight at Barclays
Teradata (TDC) downgraded to Equal Weight from Overweight at Barclays
Initiations
ANSYS (ANSS) initiated with an Equal Weight at Barclays
American Realty (ARCP) initiated with a Market Perform at Wells Fargo
Annie's (BNNY) initiated with an Outperform at Oppenheimer
Ball Corp. (BLL) initiated with a Market Perform at BMO Capital
Bemis (BMS) initiated with a Market Perform at BMO Capital
Berry Plastics (BERY) initiated with a Market Perform at BMO Capital
Boulder Brands (BDBD) initiated with an Outperform at Oppenheimer
Crown Holdings (CCK) initiated with an Outperform at BMO Capital
Domtar (UFS) initiated with an Outperform at BMO Capital
Enservco (ENSV) initiated with a Buy at Maxim
Foot Locker (FL) initiated with a Buy at Jefferies
Glatfelter (GLT) initiated with a Market Perform at BMO Capital
Graphic Packaging (GPK) initiated with an Outperform at BMO Capital
Greif (GEF) initiated with a Market Perform at BMO Capital
International Paper (IP) initiated with a Market Perform at BMO Capital
LTC Properties (LTC) initiated with a Buy at Mizuho
Louisiana-Pacific (LPX) initiated with an Outperform at BMO Capital
National General (NGHC) initiated with an Outperform at JMP Securities
National Health Investors (NHI) initiated with a Neutral at Mizuho
Owens-Illinois (OI) initiated with an Outperform at BMO Capital
Packaging Corp. (PKG) initiated with an Outperform at BMO Capital
Plum Creek Timber (PCL) initiated with a Market Perform at BMO Capital
RadiSys (RSYS) initiated with a Buy at DA Davidson
Rayonier (RYN) initiated with a Market Perform at BMO Capital
RockTenn (RKT) initiated with a Market Perform at BMO Capital
Sealed Air (SEE) initiated with an Outperform at BMO Capital
Silgan Holdings (SLGN) initiated with a Market Perform at BMO Capital
Sonoco (SON) initiated with a Market Perform at BMO Capital
TripAdvisor (TRIP) initiated with a Fair Value at CRT Capital
Vertex Energy (VTNR) initiated with an Outperform at Imperial Capital
Weyerhaeuser (WY) initiated with an Outperform at BMO Capital
WhiteWave Foods (WWAV) initiated with an Outperform at Oppenheimer
COMPANY NEWS
Johnson & Johnson (JNJ) to fast-track development of Ebola combination vaccine regimen
Yum! Brands (YUM) forecast China division SSS for Q3 down 13% vs. prior year
TIBCO (TIBX) announced that its board will review strategic alternatives
Teledyne (TDY) said it will acquire Bolt Technology (BOLT) for $22 per share in cash Teledyne also entered into a $100M accelerated share repurchase agreement
Morgans Hotel (MHGC) disclosed that the special transaction committee has directed Morgan Stanley (MS) to reach out to possible counterparties regarding their interest in potential transactions that could provide Morgans an opportunity to maximize value for its stockholders
Costco (COST) reported August SSS up 7%
PG&E (PCG) said it plans to appeal $1.4B fine by CPUC
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Methode Electronics (MEI), Dominion Diamond (DDC), ABM Industries (ABM), PVH Corp. (PVH), Christopher & Banks (CBK), Bazaarvoice (BV), LightPath (LPTH)
Companies that missed consensus earnings expectations include:
Descartes Systems (DSGX), Joy Global (JOY), Matrix Service (MTRX), AeroVironment (AVAV), Mitcham Industries (MIND), Iteris (ITI), Shoe Carnival (SCVL)
Companies that matched consensus earnings expectations include:
H&R Block (HRB)
NEWSPAPERS/WEBSITES
Home Depot (HD) data breach involves nearly all U.S. stores, Krebs reports
Ichan exits Family Dollar (FDO) position with $200M profit, Reuters reports
Symantec (SYMC), FishNet enlisted by Home Depot (HD) for breach probe, Bloomberg says
Tesla (TSLA) picks Nevada for gigafactory, WSJ reports
Goldman (GS) overseeing early share trading in Alibaba (BABA) IPO, Reuters reports
MetLife (MET) to meet with regulators to decide if 'too big to fail,' NY Post reports
Gannett's (GCI) USA Today cuts 70 employees, WSJ reports
Toll Brothers (TOL) looks unattractive, Barron's says
SYNDICATE
Allison Transmission (ALSN) sells 5.39M shares by holders
Arlington Asset Investment (AI) offers 2.75M shares of Class A common stock
Buckeye Partners (BPL) 6.75M share Secondary priced at $80.00
Chesapeake Lodging (CHSP) announces offering of 4.2M common shares
Memorial Production (MEMP) offers 13M common units
Northstar Realty (NRF) files to sell 45M shares with a foward component
Pebblebrook Hotel (PEB) files to sell 3M shares of common stock
Summit Midstream (SMLP) offers 4M common units owned by SMP Holdings
Sunoco Logistics (SXL) files to sell $1B common units Reported by Zero Hedge 2 days ago.