- France’s Sarkozy faces corruption probe in blow to comeback hopes (Reuters)
- Ukraine Says Military Offensive Against Rebels Yielding Results (WSJ)
- JPMorgan Investors Show Support for Dimon in Cancer Fight (BBG)
- World’s ATM Moves to Frankfurt as Yellen’s Fed Slows Cash (BBG)
- Argentina Seen Backtracking on Fernandez Vows as Legacy at Risk (BBG)
- Palestinian teen killed in possible revenge attack (Reuters)
- The Bill and Hillary Clinton Money Machine Taps Corporate Cash (WSJ)
- London House Prices Surge the Most Since 1987, Nationwide Says (BBG)
- Last Jew in Afghanistan faces ruin as kebabs fail to sell (Reuters)
- More than 500 arrested at Hong Kong pro-democracy sit-in (CBS)
- Erdogan Bids for Turkish History After Corruption Scandal (BBG)
- Fidelity Bans U.S. Investors Overseas From Buying Mutual Funds (WSJ)
- Apartment Rents Rise as Incomes Stagnate (WSJ)
- Facebook’s New Ad Effort Focuses on Emerging Markets (WSJ)
- Defiant Al Jazeera faces conservative backlash after Arab Spring (Reuters)
Overnight Media Digest
Executives at France’s BNP Paribas breathed a collective sigh of relief following its record $9 billion fine for breaking U.S. sanctions, as clients, investors and the French government stood by the bank.
Unite, the biggest donor to opposition party Labour, has become the first trade union to back David Cameron’s plan to put Britain’s EU membership to a public vote.
The head of British drugmaker AstraZeneca has signalled his confidence in the company’s prospects buying 2 million pounds ($3.36 million) worth of its shares, just weeks it rejected a multibillion takeover bid from U.S. rival Pfizer .
U.S. authorities have fined Goldman Sachs $800,000 over pricing rule violations stemming from its “dark pool.”
Twitter has hired a former Goldman Sachs banker who helped take the micro-blogging site public as its new chief financial officer as it addresses investor concerns about slowing user growth.
Barclays has hired one of British Prime Minister David Cameron’s most senior business advisers to join the technology, media and telecommunication (TMT) team of its investment banking arm.
* A Canadian anti-spam law requiring proof that a recipient has consented to be sent emails has resulted in a torrent of messages from companies, non-profits and government agencies to everyone on their mailing lists. It is the unintended byproduct of a new Canadian law designed to declutter inboxes. (http://nyti.ms/1qj2ua7)
* Twitter’s Chief Executive Dick Costolo brought in Anthony Noto, the star Goldman Sachs banker who helped Twitter sell its initial stock offering last fall, as the Chief Financial Officer of the micro-blogging company. (http://nyti.ms/1jIb6kQ)
* Troubled automaker General Motors said that its sales in June rose by 1 percent over the same month a year earlier, to 267,461 vehicles, and keeping pace with an overall strong industry performance. (http://nyti.ms/1z6EACY)
* The Federal Trade Commission on Tuesday brought a legal action accusing T-Mobile of illegally earning hundreds of millions of dollars by placing bogus charges on customers’ cellphone bills for premium texting services that the consumers never ordered. Regulators said that T-Mobile had been allowing the third-party charges, and taking a hefty cut of the revenue, since 2009. (http://nyti.ms/1iWLTIl)
* Jamie Dimon, the chief executive of JPMorgan Chase , has throat cancer and will begin treatment shortly at Memorial Sloan Kettering Cancer Center, he said in a note to the bank’s employees and shareholders late on Tuesday. (http://nyti.ms/1qwHKNM)
* Puerto Rico’s electrical utility is running out of money and time to negotiate a deal with its lenders, part of a broad reckoning for an island that relies on Wall Street to finance some of its most basic functions. (http://nyti.ms/1qPpaOC)
* Whitney Wolfe, a former executive at the popular dating start-up Tinder, has filed a lawsuit against the company, along with its majority owner, IAC/InterActiveCorp, on sexual harassment and discrimination claims. (http://nyti.ms/1m7zSPm)
* Under pressure from the National Highway Traffic Safety Administration, Graco Children’s Products has agreed to recall about 1.9 million rear-facing infant seats with a faulty buckle that can make it difficult to free a child during an emergency. (http://nyti.ms/VaL6J2)
* President Obama called on congressional Republicans on Tuesday to take quick action to fund infrastructure projects throughout the country, arguing that failing to do so could mean huge layoffs for Americans this year. (http://nyti.ms/1mj6rM1)
* The United States Marshals Service announced on Tuesday that one bidder had won all of the nearly 30,000 Bitcoins auctioned on Friday. But the Marshals Service did not identify the winner or disclose the winning bid. (http://nyti.ms/1mIePPm)
* A judge on Tuesday dismissed two securities fraud counts against Rengan Rajaratnam, the younger brother of the Galleon Group founder Raj Rajaratnam, in a surprise development in an insider trading case. (http://nyti.ms/1pIslud)
* J. C. Penney appealed a New York state court ruling on Monday that found it had interfered with a contract between Macy’s and Martha Stewart Living Omnimedia by selling the celebrity’s home goods, according to a filing. (http://nyti.ms/TNPFYR)
THE GLOBE AND MAIL
** Unless Canada makes a lot more contributions to the International Space Station, it could be a while before another Canadian astronaut visits the giant orbiting space laboratory. For the moment, what’s clear is that no Canadians will be heading up to the space station before 2017. (http://bit.ly/1iXcBAK)
** An Amber Alert remained in effect across Alberta on Canada Day as police continued to search for leads in the perplexing disappearance of a five-year-old boy and his grandparents. Nathan O’Brien was reported missing Monday morning when his mother went to pick him up after a sleep-over at the grandparents’ southwest Calgary home and they weren’t there. (http://bit.ly/1jIT8i4)
Reports in the business section:
** Canadian retailers are bracing for a fashion fight this fall. Wal-Mart Canada Corp is stepping up its focus on styles of the season at lower price points in a bid to raise the profile of its key George line. At the same time, Target Corp is intent on repositioning its sweet spot of affordable trendy fashions. Canadian grocer Loblaw Cos Ltd is looking to expand its Joe Fresh styles beyond North America in its bid to woo price-conscious fashionistas. (http://bit.ly/1vvuOFG)
** More than 150 acute care patients and long-term residents have been moved from a hospital in eastern Saskatchewan because of flooding. The full-scale evacuation at St. Peter’s Hospital in the city of Melville, about 145 kilometers northeast of Regina, took place because a creek behind the facility was rising on Tuesday. (http://bit.ly/1o1ilpo)
** A seven-year-old girl was airlifted to hospital with a “serious leg injury” after being struck by a boat in Lake Rosseau, Ontario Provincial Police said. (http://bit.ly/1xfNmg0)
** Having dumped the lowly penny, the Royal Canadian Mint is planning to create two high-value coins that won’t appear in any change handed out at the local Tim Hortons. A recent cabinet order authorizes the mint to produce two coins with face values of $1,000 and $1,250, destined for collectors rather than pockets or purses. (http://bit.ly/1lSoU0O)
** Toronto-based Globe and Mail newspaper’s reporters appear to be preparing to launch a competing online publication to add leverage in their standoff with management. Leaders of The Globe’s workers’ union, Unifor Local 87-M, have recommended the rejection of management’s latest contract offer, which is scheduled to go to a vote on Wednesday afternoon. (http://bit.ly/TOki0g)
CHINA SECURITIES JOURNAL
– At the start of July, a total of 637 Chinese companies had published preliminary IPO disclosures, according to data from the China Securities Regulatory Commission (CSRC). That included 40 companies which have already received approvals.
– A construction project in Shanghai, the Shanghai Yuehe International Plaza, was recently halted by local courts because the developer is facing cash flow problems and issues with its loans, the official newspaper reported.
SHANGHAI SECURITIES NEWS
– The volume of trade in China’s futures market fell around 10 percent in the first half of the year against the same period in 2013, according to figures from the China Futures Association. China is trying to increase the range of financial products available to investors.
– A chemical company in China’s eastern Zhejiang province has been fined 20 million yuan ($3.25 million) for illegally discharging wastewater and polluting, local authorities said. China has been cracking down on polluters as it looks to clean up soaring levels of air, water and soil pollution.
– China’s capital, Beijing, will have healthy air by 2030, according to a senior official at the city’s Municipal Research Institute of Environmental Protection. In 2013 air pollution in Beijing was over double the level recommended by the World Health Organization.
– Five people have been detained in northeast China in connection with a huge oil pipeline fire on Monday evening near the city of Dalian, local officials said. The burst, which involved no casualties, was caused by nearby construction work.
– Alipay’s popular online investment fund Yu’e Bao said its assets hit 574.2 billion yuan ($93.33 billion) at the end of June, more than triple the amount at the start of the year.
– Patriotic Hong Kong people should play a central role in administering the territory and upholding the principle of ‘one country, two system’, the newspaper, which acts as a government mouthpiece, said in a commentary. Hundreds of thousands of pro-democracy protesters marched in Hong Kong on Tuesday.
ECONOMY PICKS UP PACE ON BACK OF BOOMING MANUFACTURING
Britain’s recovery gathered speed in the second quarter on the back of the booming manufacturing industry, economists said after factory activity accelerated in June at its second fastest rate in more than three years.
TATA BLAMES BUSINESS RATES FOR 400 JOB CUTS
Tata Steel, one of Britain’s biggest private employers, blamed the cuts on ‘much higher’ business rates compared to other EU countries and ‘uncompetitive’ energy costs.
SPORTS DIRECT HITS OUT AT ‘ANTI-COMPETITIVE’ ADIDAS
Mike Ashley’s sports retailer Sports Direct is understood to have reported adidas to competition authorities ahead of potentially stormy shareholder meeting.
MADELEINE MCCANN CASE: PORTUGUESE POLICE QUESTION FOUR SUSPECTS
Portuguese police have begun questioning four suspects identified by Scotland Yard detectives as being able to assist them in their investigation into the disappearance of Madeleine McCann seven years ago in Praia da Luz.
SAINSBURY’S ENERGY HIT BY MIS-SELLING SCANDAL
British Gas is being forced to compensate thousands of customers for providing inaccurate savings estimates in the latest mis-selling episode to blight the utility sector.
Fly On The Wall 7:00 AM Market Snapshot
Domestic economic reports scheduled for today include:
ADP employment report for June at 8:15–consensus 213K
Factory orders for May at 10:00–consensus down 0.3%
AbbVie (ABBV) upgraded to Overweight from Equal Weight at Barclays
Alcatel-Lucent (ALU) upgraded to Overweight from Neutral at JPMorgan
Bank of America (BAC) upgraded to Buy from Hold at Deutsche Bank
Canadian Pacific (CP) upgraded to Outperformer from Sector Performer at CIBC
Eli Lilly (LLY) upgraded to Equal Weight from Underweight at Barclays
Energy Transfer Partners (ETP) upgraded to Outperform at Wells Fargo
Liberty Media (LMCA) upgraded to Overweight from Equal Weight at Morgan Stanley
Men’s Wearhouse (MW) upgraded to Buy from Hold at Stifel
Oracle (ORCL) upgraded to Overweight from Neutral at Atlantic Equities
WebMD (WBMD) upgraded to Buy from Hold at Stifel
Beazer Homes (BZH) downgraded to Neutral from Buy at Sterne Agee
Bristol-Myers (BMY) downgraded to Equal Weight from Overweight at Barclays
El Paso Pipeline (EPB) downgraded to Sell from Neutral at Goldman
Harley-Davidson (HOG) downgraded to Market Perform from Outperform at Raymond James
Hormel Foods (HRL) downgraded to Neutral from Outperform at Credit Suisse
Millennial Media (MM) downgraded to Equal Weight from Overweight at Evercore
Omega Healthcare (OHI) downgraded to Neutral from Buy at Goldman
Saneamento Basico (SBS) downgraded to Sector Perform from Outperform at Scotia
Targa Resources Partners (NGLS) downgraded to Equal Weight at Barclays
Targa Resources Partners (NGLS) downgraded to Market Perform at Wells Fargo
Trimble (TRMB) downgraded to Neutral from Buy at Janney Capital
U.S. Bancorp (USB) downgraded to Neutral from Outperform at RW Baird
Advanced Energy (AEIS) initiated with a Hold at Canaccord
Atlas Energy (ATLS) initiated with an Outperform at RBC Capital
Atlas Pipeline Partners (APL) initiated with a Sector Perform at RBC Capital
Colfax (CFX) initiated with an Outperform at RBC Capital
Contango Oil & Gas (MCF) initiated with a Buy at Brean Capital
Intercept (ICPT) initiated with a Neutral at Goldman
JDSU (JDSU) initiated with a Neutral at JPMorgan
Owens-Illinois (OI) initiated with a Hold at Jefferies
Premier (PINC) initiated with a Buy at Jefferies
Southcross Energy Partners (SXE) initiated with a Sector Perform at RBC Capital
SunEdison (SUNE) initiated with a Buy at Canaccord
Vipshop (VIPS) initiated with a Buy at Jefferies
Yahoo Japan (YAHOY) initiated with a Buy at Jefferies
Destination Maternity (DEST) confirms interest in Mothercare plc
Exxon Mobil (XOM) announces $1B investment in Antwerp Refinery
Roche’s (RHHBY) Genentech acquires Seragon Pharmaceuticals for $725M
Google (GOOG) announces acquisition of Songza
HP (HPQ) awarded contract extension by Shell
Intuitive Surgical (ISRG) to begin direct sales of da Vinci surgical systems in Japan
JPMorgan (JPM) CEO Jamie Dimon diagnosed with throat cancer
Monsanto (MON) announces $6B accelerated share repurchase
Vectren (VVC) to sell coal mining subsidiary to Hallador subsidiary for $296M in cash
WellCare (WCG) announces Florida MMA rate decrease
Companies that beat consensus earnings expectations last night and today include:
Greenbrier (GBX), A. Schulman (SHLM), CalAmp (CAMP)
Companies that matched consensus earnings expectations include:
AU Optronics (AUO) to see at least 10% increase in Q2 revenue, DigiTimes reports
American Airlines (AAL) nears $2.6B CFM engine order, Reuters says
Apple (AAPL) to open ten more stores in China, China Daily says
JetBlue (JBLU) expects new sleeper seating to boost profits, Reuters says
Lenovo CEO confident IBM deal to close by end of year, WSJ reports
Microsoft (MSFT) to join Internet of Things alliance, Re/code reports
Rackspace (RAX) looking to take itself private, TechCrunch reports
Time to take profits in MannKind (MNKD), Barron’s says
Benefitfocus (BNFT) files to sell $100M of common stock for holders
GlobeImmune (GBIM) 1.5M share IPO priced at $10.00
TECO Energy (TE) 15.5M share Secondary priced at $18.10