· Russia faces new U.S., EU sanctions over Ukraine crisis (Reuters)
· Glasgow pulls no punches in welcome to 'Save the Union Express' (Guardian)
· Pound Seen Tumbling Up to 10% on Scottish Yes Vote (BBG)
· Moscow stifles dissent as soldiers return in coffins (Reuters)
· Ukraine's leader sees no military solution of crisis, eyes reforms (Reuters)
· Venezuela Threatens Harvard Professor for Default Comment (BBG)
· Australia Raises Terror Alert to Highest Level in a Decade (BBG)
· Activist Investors Build Up Their War Chests (WSJ)
· Russians Skip Riviera Jaunt as Sanctions Ground Private Jets (BBG)
· Yahoo Faced Big U.S. Fines Over User Data (BBG)
· Why Musk Is Building Batteries in a Desert When No One Is Buying (BBG)
· Madoff Son Andrew Leaves More Than $15 Million in Will (BBG)
· Allies Pledge to Help U.S. Fight Islamic State (WSJ)
· Sanctions Over Ukraine Put Exxon at Risk (WSJ)
· Wall Street watchdog to pick insider as arbitration head - source (Reuters)
*Overnight Media Digest*
WSJ
* Washington's international allies didn't make clear how far they would go to join military operations even as they pledged their support. (http://on.wsj.com/X0Z7ts)
* Sanctions against Russia put Exxon in the middle of U.S. foreign policy and threaten to hurt one of the company's best chances to find significant, and much needed, amounts of crude oil. (http://on.wsj.com/1rYORjN)
* The Treasury Department is monitoring U.S. banks that are shifting some trading operations overseas to avoid tough U.S. swaps rules, according to a department official. (http://on.wsj.com/YBNsTz)
* A number of the largest activists are raising billions of dollars, in an effort to take advantage of their increasing clout in boardrooms and above-average hedge-fund returns. (http://on.wsj.com/1qOCbbr)
* Starboard Value said it would take a number of steps to boost the value of Darden Restaurants, owner of Olive Garden, if the activist hedge fund wins control of the entire board. (http://on.wsj.com/1sxfDxL)
* Americans living abroad are being cut off by banks and brokerages as financial institutions seek to steer clear of a U.S. crackdown on money laundering and tax evasion. (http://on.wsj.com/1rQVPRV)
* Verizon Communications Inc could launch a digital video service over the Internet by the middle of next year, Chief Executive Lowell McAdam said at an investor conference on Thursday. (http://on.wsj.com/1uqrXAp)
FT
Savings and insurance firm Engage Mutual said it plans to merge with Family Investments, provider of child trust funds. The combined business is expected to have 2 million customers and 6 billion stg ($9.74 billion) of assets.
Banco Espirito Santo SA secretly loaned money to its 25 percent shareholder, Espirito Santo International, through ES Bank Panama for two years.
Air France KLM SA's chief executive threatened to stop the development of the Franco-Dutch airline group's budget carrier in France and its expansion in Europe, if Transavia France does not reach an agreement with the French pilots, before the strike next week.
German taxi drivers hired a driver from Uber, the app-enabled car service, as a part of the sting operation, to serve an injunction backed by threat of six month jail sentence or a fine of 25000 euros.
Manufacturing company Weir Group PLC said it would consider relocating its headquarters in the event of a "yes" vote in the Scotland independence referendum next week.
NYT
* The U.S. government was so determined to collect the Internet communications of foreign Yahoo customers in 2008 that it threatened the company with fines of $250,000 a day if it did not immediately comply with a secret court order to turn over the data. The threat, which was made public Thursday as part of about 1,500 pages of previously classified documents that were unsealed by a federal court, adds new details to the public history of a fight that unfolded in secret at the time. (http://nyti.ms/WQtemY)
* RadioShack Corp, the struggling electronics retailer that is quickly running out of cash, said on Thursday that it might have to file for bankruptcy protection, or even liquidate, if it cannot arrange a lifeline. (http://nyti.ms/1uyuqbo)
* Chinese regulators fined Volkswagen AG and Fiat's Chrysler for violating antitrust laws, announcing on Thursday the first monetary penalties against large multinational carmakers swept up in a broad investigation. The fines, which totaled $46 million, were the latest in a series of tough measures by China against what it considers monopolistic practices. (http://nyti.ms/1tOxwdm)
* Subprime lenders have surprised everyone in recent years by churning out billions of dollars in loans that have not led to a pileup of bad debts. But this month, some signs have appeared that suggest subprime lenders are pushing this spree to the limit. The problems are occurring when they extend credit to particularly risky borrowers or make loans that are harder to repay. (http://nyti.ms/YC2o40)
* For the banks and credit card networks, Apple Pay could threaten some revenue streams, as the technology giant looks to assume a more central role in the financial universe. But the eager participation of banks and card companies suggests both Apple Inc's clout, and the recognition among financial institutions that they face broader challenges from upstart technology ventures, many of which are not as eager or willing as Apple to work with the incumbent financial industry. (http://nyti.ms/1AEL8Xt)
Canada
THE GLOBE AND MAIL
** World oil prices sank to their lowest intraday level in more than two years on Thursday after the West's energy security watchdog cut its forecast for demand growth, threatening the earnings momentum that had returned to the Canadian oil patch. The International Energy Agency said in its September oil market report that economic weakness in Europe and China prompted it to temper its outlook for global oil demand in 2014 and 2015. (http://bit.ly/1nPUidE)
** It could be as long as a week before Toronto Mayor Rob Ford has a diagnosis for the tumor in his abdomen and a course of treatment is determined, news that continues to leave his political future in question. Zane Cohen, a colorectal surgeon and director of the Zane Cohen Centre for Digestive Diseases at Toronto's Mount Sinai Hospital, said Ford had a mass in his lower abdomen and would continue to undergo tests Friday. (http://bit.ly/1qMm9Pn)
** The roughly 70 special forces soldiers Canada is deploying to Iraq have yet to start their mission, but these elite troops would be able to teach Kurdish fighters everything from marking targets for air strikes to operating high-tech communications gear. Stephen Harper has committed Canadian soldiers to Iraq for a 30-day assignment, although it is widely believed Ottawa will ultimately extend what the government insists is not a combat mission. (http://bit.ly/1uqPwt2)
NATIONAL POST
** If there are worries about falling oil prices, Canadian companies aren't showing it. At a panel discussion about the oil sands at an energy conference this week in Toronto, companies seemed more concerned about pipeline shortages and acquiring 'social licenses' than the weakening price of a barrel of crude. "Commodity price remains the largest risk overall, but we are generally mostly bullish on the price of oil given the growth and demand outside of North America," Ivor Ruste, chief financial officer at Cenovus Energy Inc, said in an interview. (http://bit.ly/1qMyYdY)
** The Canadian government proposes to slash public servants' paid sick leave to five days a year and introduce an unpaid seven-day waiting period before they qualify for new short-term disability benefits. Treasury Board negotiators presented the government's long-awaited bargaining position on a new sick-leave regime late Wednesday at closed-door talks with the giant Public Service Alliance of Canada. (http://bit.ly/1xQh5jb)
** At 4 a.m. Tuesday, a ring of police officers roused Antonio Coluccio from slumber inside a house in Siderno, a village on Italy's picturesque coast that has stubbornly remained a stronghold for the Mafia, arresting him - again - and putting another dent in his hope of returning to his home and family in Canada. Coluccio, 44, lived in Richmond Hill, north of Toronto, until he was pressured to leave in 2010 by Canada's immigration authorities who said he was involved in organized crime, accusations he denied. (http://bit.ly/1syxrIR)
China
CHINA SECURITIES JOURNAL
- The combined daily transaction volume at the Shanghai and Shenzhen stock exchanges increased to 431.4 billion yuan ($70.38 billion) on Thursday, the highest level in nearly four years, on the back of a running rally.
SHANGHAI SECURITIES NEWS
- CNOOC Ltd is trying to offload its 50 percent stake in AEGON-CNOOC Life Insurance Co Ltd for auction to potential buyer Tsinghua Tongfang Co Ltd. AEGON-CNOOC posted a net loss of 92.5 million yuan ($15.09 million) in 2013.
CHINA DAILY
- President Xi Jinping said China and Russia should begin early work on a natural gas pipeline project and increase bilateral energy cooperation when he met his Russian counterpart, Vladimir Putin on the sidelines of the summit of the Shanghai Cooperation Organization on Thursday.
- More than 100 internet companies in Beijing signed a pledge to identify and prevent the transmission of illegal and improper information online.
SHANGHAI DAILY
- China's bank-card consumer confidence index hit the lowest level since the beginning of 2013 in August amid the country's sluggish macro-economic situation, China UnionPay Co said in a report on Thursday.
PEOPLE'S DAILY
- President Xi Jinping proposed to build an economic corridor linking China, Mongolia and Russia during a meeting of the three heads of state on the sidelines of the 14th summit of the Shanghai Cooperation Organization Thursday.
Britain
The Times
NORTH KOREA COMES OUT FOR SCOTLAND'S SALMOND
The Yes campaign in Scotland received an unlikely ally yesterday when it emerged that North Korea was quietly backing the independence movement. The country often described as the hermit kingdom is allegedly keen to increase trade with an independent Scotland, according to officials of the Pyongyang regime. (thetim.es/Ziqcty)
NEW RUSSIA SANCTIONS SET TO HIT BP AND EXXONMOBIL
BP and ExxonMobil could be caught up in the escalating trade war between Russia and the West today when a fresh round of economic sanctions are announced. (thetim.es/1pUeZ7S)
The Guardian
'POISON PILL' PRIVATISATION CONTRACTS COULD COST 300 MLN STG-400 MLN STG TO CANCEL
Taxpayers will face a 300 million stg ($487.56 million) to 400 million stg penalty if controversial probation privatisation contracts are cancelled after next May's general election under an "unprecedented" clause that guarantees bidders their expected profits over the 10-year life of the contract. (bit.ly/1sv6SUP)
INDEPENDENT SCOTLAND 'FACES DOUBLING OF BBC LICENCE FEE
The BBC is under political pressure to reveal details of a highly charged internal study which found that viewers in an independent Scotland would have to pay almost double their current licence fee if they wanted to continue watching and listening to the same BBC shows. (bit.ly/YBmtHH)
The Telegraph
JUDGE THOKOZILE MASIPA RIPS APART PROSECUTION CASE AGAINST OSCAR PISTORIUS FOR MURDER OF REEVA STEENKAMP
Judge Thokozile Masipa, who tried the Oscar Pistorius case without a jury, said prosecutors had failed to prove beyond reasonable doubt that Pistorius intended to kill his girlfriend at his Pretoria home on Valentine's Day last year. (bit.ly/1tO5xu8)
SCOTLAND'S ALEX SALMOND GOES TO WAR WITH BBC OVER RBS 'LEAK'
An irate Alex Salmond today declared war on the BBC after the Corporation disclosed Royal Bank of Scotland Group's decision to move its headquarters to England if there is a Yes vote. (bit.ly/X3ePEr)
Sky News
NEW POLL GIVES 'NO' SMALL LEAD IN SCOTLAND VOTE
The Better Together campaign in Scotland is retaining a marginal lead, according to a new poll that puts No on 52 percent and Yes on 48 percent. The YouGov poll of 1,300 people on the issue of Scottish independence for The Sun and The Times was taken over Tuesday to Thursday. (bit.ly/1tDOlnz)
AMAZON TO CREATE THOUSANDS OF JOBS IN LONDON
Amazon has announced plans to open a new London office with the potential for more than 3,000 extra jobs. The online retailer, which already employs 1,700 people in its existing UK offices, said its main corporate office would switch to a building in Shoreditch in 2017. (bit.ly/WZhlLT)
The Independent
SCOTTISH INDEPENDENCE: PRICES WILL RISE WITH YES VOTE, JOHN LEWIS BOSS WARNS
Prices in Scottish branches of John Lewis, Waitrose and Next are likely to be higher than in the rest of the UK if the country votes to become independent next week. (ind.pn/1pUs29f)
SPORTS DIRECT TO BE SUED BY ZERO-HOUR WORKERS AFTER THEY MISS OUT ON A £160M BONUS
Workers at the Sports Direct chain of stores who were left out of a 160 million stg bonus scheme because they are on zero-hour contracts are preparing to take legal action. (ind.pn/1paomAl)
*Fly On The Wall Pre-market Buzz*
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Retail sales for August at 8:30--consensus up 0.6%
Import prices for August at 8:30--consensus down 0.9%
University of Michigan consumer confidence for September--consensus 83.3
Business inventories for July at 10:00--consensus up 0.4%
ANALYST RESEARCH
Upgrades
Cedar Realty Trust (CDR) upgraded to Buy from Hold at KeyBanc
Genuine Parts (GPC) upgraded to Buy from Hold at BB&T
Inland Real Estate (IRC) upgraded to Buy from Hold at KeyBanc
Littelfuse (LFUS) upgraded to Outperform from Perform at Oppenheimer
Netflix (NFLX) upgraded to Equal Weight from Underweight at Barclays
Noranda Aluminum (NOR) upgraded to Buy from Neutral at Goldman
OCI Partners (OCIP) upgraded to Buy from Neutral at Citigroup
Ramco-Gershenson (RPT) upgraded to Buy from Hold at KeyBanc
Sprint (S) upgraded to Market Perform from Underperform at Cowen
The Advisory Board (ABCO) upgraded to Outperform from Market Perform at Wells Fargo
Downgrades
Annie's (BNNY) downgraded to Sector Perform from Outperform at RBC Capital
DDR Corp. (DDR) downgraded to Neutral from Buy at UBS
Investors Real Estate (IRET) downgraded to Underperform at RBC Capital
OCI Resources (OCIR) downgraded to Neutral from Buy at Citigroup
PMFG (PMFG) downgraded to Market Perform from Outperform at William Blair
Initiations
Acuity Brands (AYI) initiated with an Outperform at Cowen
Aerohive Networks (HIVE) initiated with an Equal Weight at Morgan Stanley
Alibaba (BABA) initiated with an Outperform at Wedbush
Allison Transmission (ALSN) initiated with a Positive at Susquehanna
AmSurg (AMSG) initiated with a Buy at KeyBanc
Aruba Networks (ARUN) initiated with an Equal Weight at Morgan Stanley
Aviv REIT (AVIV) initiated with a Buy at Stifel
CareTrust REIT (CTRE) initiated with a Hold at Stifel
Chart Industries (GTLS) initiated with a Market Perform at Cowen
Community Health (CYH) initiated with an Outperform at Leerink
Cree (CREE) initiated with a Market Perform at Cowen
Dollar General (DG) initiated with a Buy at UBS
Dollar Tree (DLTR) initiated with a Buy at UBS
Epizyme (EPZM) initiated with a Buy at Mizuho
Family Dollar (FDO) initiated with a Neutral at UBS
HCA Holdings (HCA) initiated with an Outperform at Leerink
Hanesbrands (HBI) initiated with a Buy at Wunderlich
Itron (ITRI) initiated with a Market Perform at Cowen
L Brands (LB) initiated with a Buy at Wunderlich
LifePoint Hospitals (LPNT) initiated with a Market Perform at Leerink
Maxwell (MXWL) initiated with an Outperform at Cowen
Methanex (MEOH) initiated with a Buy at Citigroup
NewLink Genetics (NLNK) initiated with a Buy at Mizuho
PVH Corp. (PVH) initiated with a Buy at Wunderlich
Pacific Ethanol (PEIX) initiated with an Outperform at Cowen
Performance Sports Group (PSG) initiated with an Outperform at Imperial Capital
Perry Ellis (PERY) initiated with a Buy at Wunderlich
Polypore (PPO) initiated with an Outperform at Cowen
Ruckus Wireless (RKUS) initiated with an Underweight at Morgan Stanley
Salix (SLXP) initiated with an Underperform at Credit Suisse
Silver Spring Network (SSNI) initiated with an Outperform at Cowen
Streamline Health (STRM) initiated with a Market Perform at Cowen
Synchrony Financial (SYF) initiated with a Neutral at UBS
Tenet (THC) initiated with a Market Perform at Leerink
Ubiquiti Networks (UBNT) initiated with an Equal Weight at Morgan Stanley
Universal Health (UHS) initiated with an Outperform at Leerink
Vitesse (VTSS) initiated with a Buy at Ascendiant
Volaris (VLRS) initiated with an Equal Weight at Barclays
COMPANY NEWS
Hertz (HTZ) reached an agreement-in-principle with Carl Icahn to add three directors to its board
Alliance Data (ADS) to acquire Conversant (CNVR) for $35 per share, or $2.3B
Starboard releases detailed transformation plan for Darden (DRI), which includes a company-wide operational improvements designed to generate more than $300M in EBITDA improvements; a turnaround plan for Olive Garden; a value enhancing strategy for Darden's real estate assets; a separation of concepts into the most logical groupings; and a new franchising program believes transformation plan can unlock $19-$38 per share in value
U.S. had threatened Yahoo (YHOO) with $250,000/day fine over not providing user data
Barclays (BCS) said John McFarlane to succeed David Walker as chairman
Lexicon's (LXRX) publication of Phase 2b study showed LX4211 provides a meaningful benefit for patients with type 2 diabetes
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Sportsman's Warehouse (SPWH), Ulta Salon (ULTA)
Companies that missed consensus earnings expectations include:
Intrawest Resorts (SNOW)
Companies that matched consensus earnings expectations include:
Green Bancorp (GNBC)
NEWSPAPERS/WEBSITES
Dollar General (DG) waiting on FTC feedback for Family Dollar (FDO) deal, NY Post reports (DLTR)
Verizon (VZ) could launch digital video service by mid-2015, WSJ reports
Applied Materials (AMAT)/Tokyo Electron filing doesn't satisfy MofCom, Bloomberg says
General Motors (GM) issues 'stop delivery' order for new Corvettes, WSJ reports
Citi's (C) Diners Club attracts attention of banks in Japan, Bloomberg reports
Apple's (AAPL) website crashes as users look to pre-order iPhone 6, BI reports
Sprint (S) CEO says looking for partnerships to broaden scale, Reuters reports
Sell lululemon (LULU) during rally, Barron's says
SYNDICATE
HD Supply (HDS) announces sale of 20M shares by holders
Health Care REIT (HCN) files to sell 15.5M shares of common stock
Inventure Foods (SNAK) 3.59M share Secondary priced at $12.85
TriNet (TNET) 12M share Secondary priced at $25.50 Reported by Zero Hedge 4 hours ago.
· Glasgow pulls no punches in welcome to 'Save the Union Express' (Guardian)
· Pound Seen Tumbling Up to 10% on Scottish Yes Vote (BBG)
· Moscow stifles dissent as soldiers return in coffins (Reuters)
· Ukraine's leader sees no military solution of crisis, eyes reforms (Reuters)
· Venezuela Threatens Harvard Professor for Default Comment (BBG)
· Australia Raises Terror Alert to Highest Level in a Decade (BBG)
· Activist Investors Build Up Their War Chests (WSJ)
· Russians Skip Riviera Jaunt as Sanctions Ground Private Jets (BBG)
· Yahoo Faced Big U.S. Fines Over User Data (BBG)
· Why Musk Is Building Batteries in a Desert When No One Is Buying (BBG)
· Madoff Son Andrew Leaves More Than $15 Million in Will (BBG)
· Allies Pledge to Help U.S. Fight Islamic State (WSJ)
· Sanctions Over Ukraine Put Exxon at Risk (WSJ)
· Wall Street watchdog to pick insider as arbitration head - source (Reuters)
*Overnight Media Digest*
WSJ
* Washington's international allies didn't make clear how far they would go to join military operations even as they pledged their support. (http://on.wsj.com/X0Z7ts)
* Sanctions against Russia put Exxon in the middle of U.S. foreign policy and threaten to hurt one of the company's best chances to find significant, and much needed, amounts of crude oil. (http://on.wsj.com/1rYORjN)
* The Treasury Department is monitoring U.S. banks that are shifting some trading operations overseas to avoid tough U.S. swaps rules, according to a department official. (http://on.wsj.com/YBNsTz)
* A number of the largest activists are raising billions of dollars, in an effort to take advantage of their increasing clout in boardrooms and above-average hedge-fund returns. (http://on.wsj.com/1qOCbbr)
* Starboard Value said it would take a number of steps to boost the value of Darden Restaurants, owner of Olive Garden, if the activist hedge fund wins control of the entire board. (http://on.wsj.com/1sxfDxL)
* Americans living abroad are being cut off by banks and brokerages as financial institutions seek to steer clear of a U.S. crackdown on money laundering and tax evasion. (http://on.wsj.com/1rQVPRV)
* Verizon Communications Inc could launch a digital video service over the Internet by the middle of next year, Chief Executive Lowell McAdam said at an investor conference on Thursday. (http://on.wsj.com/1uqrXAp)
FT
Savings and insurance firm Engage Mutual said it plans to merge with Family Investments, provider of child trust funds. The combined business is expected to have 2 million customers and 6 billion stg ($9.74 billion) of assets.
Banco Espirito Santo SA secretly loaned money to its 25 percent shareholder, Espirito Santo International, through ES Bank Panama for two years.
Air France KLM SA's chief executive threatened to stop the development of the Franco-Dutch airline group's budget carrier in France and its expansion in Europe, if Transavia France does not reach an agreement with the French pilots, before the strike next week.
German taxi drivers hired a driver from Uber, the app-enabled car service, as a part of the sting operation, to serve an injunction backed by threat of six month jail sentence or a fine of 25000 euros.
Manufacturing company Weir Group PLC said it would consider relocating its headquarters in the event of a "yes" vote in the Scotland independence referendum next week.
NYT
* The U.S. government was so determined to collect the Internet communications of foreign Yahoo customers in 2008 that it threatened the company with fines of $250,000 a day if it did not immediately comply with a secret court order to turn over the data. The threat, which was made public Thursday as part of about 1,500 pages of previously classified documents that were unsealed by a federal court, adds new details to the public history of a fight that unfolded in secret at the time. (http://nyti.ms/WQtemY)
* RadioShack Corp, the struggling electronics retailer that is quickly running out of cash, said on Thursday that it might have to file for bankruptcy protection, or even liquidate, if it cannot arrange a lifeline. (http://nyti.ms/1uyuqbo)
* Chinese regulators fined Volkswagen AG and Fiat's Chrysler for violating antitrust laws, announcing on Thursday the first monetary penalties against large multinational carmakers swept up in a broad investigation. The fines, which totaled $46 million, were the latest in a series of tough measures by China against what it considers monopolistic practices. (http://nyti.ms/1tOxwdm)
* Subprime lenders have surprised everyone in recent years by churning out billions of dollars in loans that have not led to a pileup of bad debts. But this month, some signs have appeared that suggest subprime lenders are pushing this spree to the limit. The problems are occurring when they extend credit to particularly risky borrowers or make loans that are harder to repay. (http://nyti.ms/YC2o40)
* For the banks and credit card networks, Apple Pay could threaten some revenue streams, as the technology giant looks to assume a more central role in the financial universe. But the eager participation of banks and card companies suggests both Apple Inc's clout, and the recognition among financial institutions that they face broader challenges from upstart technology ventures, many of which are not as eager or willing as Apple to work with the incumbent financial industry. (http://nyti.ms/1AEL8Xt)
Canada
THE GLOBE AND MAIL
** World oil prices sank to their lowest intraday level in more than two years on Thursday after the West's energy security watchdog cut its forecast for demand growth, threatening the earnings momentum that had returned to the Canadian oil patch. The International Energy Agency said in its September oil market report that economic weakness in Europe and China prompted it to temper its outlook for global oil demand in 2014 and 2015. (http://bit.ly/1nPUidE)
** It could be as long as a week before Toronto Mayor Rob Ford has a diagnosis for the tumor in his abdomen and a course of treatment is determined, news that continues to leave his political future in question. Zane Cohen, a colorectal surgeon and director of the Zane Cohen Centre for Digestive Diseases at Toronto's Mount Sinai Hospital, said Ford had a mass in his lower abdomen and would continue to undergo tests Friday. (http://bit.ly/1qMm9Pn)
** The roughly 70 special forces soldiers Canada is deploying to Iraq have yet to start their mission, but these elite troops would be able to teach Kurdish fighters everything from marking targets for air strikes to operating high-tech communications gear. Stephen Harper has committed Canadian soldiers to Iraq for a 30-day assignment, although it is widely believed Ottawa will ultimately extend what the government insists is not a combat mission. (http://bit.ly/1uqPwt2)
NATIONAL POST
** If there are worries about falling oil prices, Canadian companies aren't showing it. At a panel discussion about the oil sands at an energy conference this week in Toronto, companies seemed more concerned about pipeline shortages and acquiring 'social licenses' than the weakening price of a barrel of crude. "Commodity price remains the largest risk overall, but we are generally mostly bullish on the price of oil given the growth and demand outside of North America," Ivor Ruste, chief financial officer at Cenovus Energy Inc, said in an interview. (http://bit.ly/1qMyYdY)
** The Canadian government proposes to slash public servants' paid sick leave to five days a year and introduce an unpaid seven-day waiting period before they qualify for new short-term disability benefits. Treasury Board negotiators presented the government's long-awaited bargaining position on a new sick-leave regime late Wednesday at closed-door talks with the giant Public Service Alliance of Canada. (http://bit.ly/1xQh5jb)
** At 4 a.m. Tuesday, a ring of police officers roused Antonio Coluccio from slumber inside a house in Siderno, a village on Italy's picturesque coast that has stubbornly remained a stronghold for the Mafia, arresting him - again - and putting another dent in his hope of returning to his home and family in Canada. Coluccio, 44, lived in Richmond Hill, north of Toronto, until he was pressured to leave in 2010 by Canada's immigration authorities who said he was involved in organized crime, accusations he denied. (http://bit.ly/1syxrIR)
China
CHINA SECURITIES JOURNAL
- The combined daily transaction volume at the Shanghai and Shenzhen stock exchanges increased to 431.4 billion yuan ($70.38 billion) on Thursday, the highest level in nearly four years, on the back of a running rally.
SHANGHAI SECURITIES NEWS
- CNOOC Ltd is trying to offload its 50 percent stake in AEGON-CNOOC Life Insurance Co Ltd for auction to potential buyer Tsinghua Tongfang Co Ltd. AEGON-CNOOC posted a net loss of 92.5 million yuan ($15.09 million) in 2013.
CHINA DAILY
- President Xi Jinping said China and Russia should begin early work on a natural gas pipeline project and increase bilateral energy cooperation when he met his Russian counterpart, Vladimir Putin on the sidelines of the summit of the Shanghai Cooperation Organization on Thursday.
- More than 100 internet companies in Beijing signed a pledge to identify and prevent the transmission of illegal and improper information online.
SHANGHAI DAILY
- China's bank-card consumer confidence index hit the lowest level since the beginning of 2013 in August amid the country's sluggish macro-economic situation, China UnionPay Co said in a report on Thursday.
PEOPLE'S DAILY
- President Xi Jinping proposed to build an economic corridor linking China, Mongolia and Russia during a meeting of the three heads of state on the sidelines of the 14th summit of the Shanghai Cooperation Organization Thursday.
Britain
The Times
NORTH KOREA COMES OUT FOR SCOTLAND'S SALMOND
The Yes campaign in Scotland received an unlikely ally yesterday when it emerged that North Korea was quietly backing the independence movement. The country often described as the hermit kingdom is allegedly keen to increase trade with an independent Scotland, according to officials of the Pyongyang regime. (thetim.es/Ziqcty)
NEW RUSSIA SANCTIONS SET TO HIT BP AND EXXONMOBIL
BP and ExxonMobil could be caught up in the escalating trade war between Russia and the West today when a fresh round of economic sanctions are announced. (thetim.es/1pUeZ7S)
The Guardian
'POISON PILL' PRIVATISATION CONTRACTS COULD COST 300 MLN STG-400 MLN STG TO CANCEL
Taxpayers will face a 300 million stg ($487.56 million) to 400 million stg penalty if controversial probation privatisation contracts are cancelled after next May's general election under an "unprecedented" clause that guarantees bidders their expected profits over the 10-year life of the contract. (bit.ly/1sv6SUP)
INDEPENDENT SCOTLAND 'FACES DOUBLING OF BBC LICENCE FEE
The BBC is under political pressure to reveal details of a highly charged internal study which found that viewers in an independent Scotland would have to pay almost double their current licence fee if they wanted to continue watching and listening to the same BBC shows. (bit.ly/YBmtHH)
The Telegraph
JUDGE THOKOZILE MASIPA RIPS APART PROSECUTION CASE AGAINST OSCAR PISTORIUS FOR MURDER OF REEVA STEENKAMP
Judge Thokozile Masipa, who tried the Oscar Pistorius case without a jury, said prosecutors had failed to prove beyond reasonable doubt that Pistorius intended to kill his girlfriend at his Pretoria home on Valentine's Day last year. (bit.ly/1tO5xu8)
SCOTLAND'S ALEX SALMOND GOES TO WAR WITH BBC OVER RBS 'LEAK'
An irate Alex Salmond today declared war on the BBC after the Corporation disclosed Royal Bank of Scotland Group's decision to move its headquarters to England if there is a Yes vote. (bit.ly/X3ePEr)
Sky News
NEW POLL GIVES 'NO' SMALL LEAD IN SCOTLAND VOTE
The Better Together campaign in Scotland is retaining a marginal lead, according to a new poll that puts No on 52 percent and Yes on 48 percent. The YouGov poll of 1,300 people on the issue of Scottish independence for The Sun and The Times was taken over Tuesday to Thursday. (bit.ly/1tDOlnz)
AMAZON TO CREATE THOUSANDS OF JOBS IN LONDON
Amazon has announced plans to open a new London office with the potential for more than 3,000 extra jobs. The online retailer, which already employs 1,700 people in its existing UK offices, said its main corporate office would switch to a building in Shoreditch in 2017. (bit.ly/WZhlLT)
The Independent
SCOTTISH INDEPENDENCE: PRICES WILL RISE WITH YES VOTE, JOHN LEWIS BOSS WARNS
Prices in Scottish branches of John Lewis, Waitrose and Next are likely to be higher than in the rest of the UK if the country votes to become independent next week. (ind.pn/1pUs29f)
SPORTS DIRECT TO BE SUED BY ZERO-HOUR WORKERS AFTER THEY MISS OUT ON A £160M BONUS
Workers at the Sports Direct chain of stores who were left out of a 160 million stg bonus scheme because they are on zero-hour contracts are preparing to take legal action. (ind.pn/1paomAl)
*Fly On The Wall Pre-market Buzz*
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Retail sales for August at 8:30--consensus up 0.6%
Import prices for August at 8:30--consensus down 0.9%
University of Michigan consumer confidence for September--consensus 83.3
Business inventories for July at 10:00--consensus up 0.4%
ANALYST RESEARCH
Upgrades
Cedar Realty Trust (CDR) upgraded to Buy from Hold at KeyBanc
Genuine Parts (GPC) upgraded to Buy from Hold at BB&T
Inland Real Estate (IRC) upgraded to Buy from Hold at KeyBanc
Littelfuse (LFUS) upgraded to Outperform from Perform at Oppenheimer
Netflix (NFLX) upgraded to Equal Weight from Underweight at Barclays
Noranda Aluminum (NOR) upgraded to Buy from Neutral at Goldman
OCI Partners (OCIP) upgraded to Buy from Neutral at Citigroup
Ramco-Gershenson (RPT) upgraded to Buy from Hold at KeyBanc
Sprint (S) upgraded to Market Perform from Underperform at Cowen
The Advisory Board (ABCO) upgraded to Outperform from Market Perform at Wells Fargo
Downgrades
Annie's (BNNY) downgraded to Sector Perform from Outperform at RBC Capital
DDR Corp. (DDR) downgraded to Neutral from Buy at UBS
Investors Real Estate (IRET) downgraded to Underperform at RBC Capital
OCI Resources (OCIR) downgraded to Neutral from Buy at Citigroup
PMFG (PMFG) downgraded to Market Perform from Outperform at William Blair
Initiations
Acuity Brands (AYI) initiated with an Outperform at Cowen
Aerohive Networks (HIVE) initiated with an Equal Weight at Morgan Stanley
Alibaba (BABA) initiated with an Outperform at Wedbush
Allison Transmission (ALSN) initiated with a Positive at Susquehanna
AmSurg (AMSG) initiated with a Buy at KeyBanc
Aruba Networks (ARUN) initiated with an Equal Weight at Morgan Stanley
Aviv REIT (AVIV) initiated with a Buy at Stifel
CareTrust REIT (CTRE) initiated with a Hold at Stifel
Chart Industries (GTLS) initiated with a Market Perform at Cowen
Community Health (CYH) initiated with an Outperform at Leerink
Cree (CREE) initiated with a Market Perform at Cowen
Dollar General (DG) initiated with a Buy at UBS
Dollar Tree (DLTR) initiated with a Buy at UBS
Epizyme (EPZM) initiated with a Buy at Mizuho
Family Dollar (FDO) initiated with a Neutral at UBS
HCA Holdings (HCA) initiated with an Outperform at Leerink
Hanesbrands (HBI) initiated with a Buy at Wunderlich
Itron (ITRI) initiated with a Market Perform at Cowen
L Brands (LB) initiated with a Buy at Wunderlich
LifePoint Hospitals (LPNT) initiated with a Market Perform at Leerink
Maxwell (MXWL) initiated with an Outperform at Cowen
Methanex (MEOH) initiated with a Buy at Citigroup
NewLink Genetics (NLNK) initiated with a Buy at Mizuho
PVH Corp. (PVH) initiated with a Buy at Wunderlich
Pacific Ethanol (PEIX) initiated with an Outperform at Cowen
Performance Sports Group (PSG) initiated with an Outperform at Imperial Capital
Perry Ellis (PERY) initiated with a Buy at Wunderlich
Polypore (PPO) initiated with an Outperform at Cowen
Ruckus Wireless (RKUS) initiated with an Underweight at Morgan Stanley
Salix (SLXP) initiated with an Underperform at Credit Suisse
Silver Spring Network (SSNI) initiated with an Outperform at Cowen
Streamline Health (STRM) initiated with a Market Perform at Cowen
Synchrony Financial (SYF) initiated with a Neutral at UBS
Tenet (THC) initiated with a Market Perform at Leerink
Ubiquiti Networks (UBNT) initiated with an Equal Weight at Morgan Stanley
Universal Health (UHS) initiated with an Outperform at Leerink
Vitesse (VTSS) initiated with a Buy at Ascendiant
Volaris (VLRS) initiated with an Equal Weight at Barclays
COMPANY NEWS
Hertz (HTZ) reached an agreement-in-principle with Carl Icahn to add three directors to its board
Alliance Data (ADS) to acquire Conversant (CNVR) for $35 per share, or $2.3B
Starboard releases detailed transformation plan for Darden (DRI), which includes a company-wide operational improvements designed to generate more than $300M in EBITDA improvements; a turnaround plan for Olive Garden; a value enhancing strategy for Darden's real estate assets; a separation of concepts into the most logical groupings; and a new franchising program believes transformation plan can unlock $19-$38 per share in value
U.S. had threatened Yahoo (YHOO) with $250,000/day fine over not providing user data
Barclays (BCS) said John McFarlane to succeed David Walker as chairman
Lexicon's (LXRX) publication of Phase 2b study showed LX4211 provides a meaningful benefit for patients with type 2 diabetes
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Sportsman's Warehouse (SPWH), Ulta Salon (ULTA)
Companies that missed consensus earnings expectations include:
Intrawest Resorts (SNOW)
Companies that matched consensus earnings expectations include:
Green Bancorp (GNBC)
NEWSPAPERS/WEBSITES
Dollar General (DG) waiting on FTC feedback for Family Dollar (FDO) deal, NY Post reports (DLTR)
Verizon (VZ) could launch digital video service by mid-2015, WSJ reports
Applied Materials (AMAT)/Tokyo Electron filing doesn't satisfy MofCom, Bloomberg says
General Motors (GM) issues 'stop delivery' order for new Corvettes, WSJ reports
Citi's (C) Diners Club attracts attention of banks in Japan, Bloomberg reports
Apple's (AAPL) website crashes as users look to pre-order iPhone 6, BI reports
Sprint (S) CEO says looking for partnerships to broaden scale, Reuters reports
Sell lululemon (LULU) during rally, Barron's says
SYNDICATE
HD Supply (HDS) announces sale of 20M shares by holders
Health Care REIT (HCN) files to sell 15.5M shares of common stock
Inventure Foods (SNAK) 3.59M share Secondary priced at $12.85
TriNet (TNET) 12M share Secondary priced at $25.50 Reported by Zero Hedge 4 hours ago.