- Bond Anxiety in $1.6 Trillion Repo Market as Failures Soar (BBG), as reported first by Zero Hedge
- As Food Prices Rise, Fed Keeps a Watchful Eye (WSJ)
- Yellen’s Economy Echoes Arthur Burns More Than Greenspan (BBG)
- Draghi’s $1.4 Trillion Shot: Silver Bullet or Misfire? (BBG)
- Israel’s Netanyahu phones father of murdered Palestinian teen (Reuters)
- Ukraine says forces will press forward after taking rebel stronghold (Reuters)
- Goldman Sachs Brings Forward Rate Forecast as Treasuries Drop (BBG)… you mean rise?
- Super typhoon takes aim at Japan (Reuters)
- Kidnapped Nigerian girls ‘escape from Boko Haram abductors’ (Independent)
- Merkel says U.S. spying allegations are serious (Reuters)
- Chinese Tycoon Guo Copying Buffett Rises From Bread to Club Med (BBG)
- Samsung Electronics faces falling profits as succession looms (Reuters)
- G.M. OnStar Data Has Potential as Safety Tool (NYT) but not really
- The Future of the Workforce May Be Part-Time, Says Google CEO Larry Page (Recode)
- Shocking: Many Pick Electric Jolt Over Solitude in Study (BBG)
- Egypt to raise fuel prices by up to 78 percent from midnight (Reuters)
- Ex-Soviet minister and Georgia leader Shevardnadze dies (Reuters)
Overnight Media Digest
* Ukraine neared a final showdown with pro-Russia rebels on Sunday, after Kiev forced insurgents to retreat to the last major city they control and Moscow showed no signs of intervening to help them (http://on.wsj.com/1jXJ30Z)
* Hillary Clinton, a presumed presidential candidate for 2016, has made clear she wouldn’t be running for a de facto third Obama term. (http://on.wsj.com/TXugwu)
* Somali militants claimed responsibility Sunday for twin attacks in eastern Kenya that aid organizations said killed at least 22 people-the second such strike in the region in less than three weeks (http://on.wsj.com/VRpbr7)
* Expedia bid 703.1 million Australian dollars (US$657.2 million) for Wotif.com as the U.S. online-travel site widens its exposure to fast-growing Asia-Pacific markets (http://on.wsj.com/1moLBcv)
* Passengers boarding U.S.-bound flights at “certain overseas airports” may be asked to turn on electronic devices including cellphones, and won’t be allowed to bring on the plane any devices that are out of battery power, the Transportation Security Administration said Sunday (http://on.wsj.com/1lMhQ0I)
* The first criminal trial linked to the Boston Marathon bombing is slated to begin in Boston on Monday with opening statements expected in the case of a former college student accused of taking evidence from the alleged bomber’s dorm room (http://on.wsj.com/1moKUzU)
Goldman Sachs is looking to capitalise on the domain of centuries-old private banks in Europe by services offered by its European wealth management business and offfering loans to rich clients in the region.
Growing security concerns in Iraq is rattling western banks, forcing them to tighten controls on clients’ funds and pull senior staff out of the country.
Spanish wireless networks provider Gowex was forced to declare bankruptcy and admit that the company’s head had falsified accounts for at least the past four years.
Rosneft is setting out long-term targets and its CEO Igor Sechin is openly talking about the Russian state oil producer’s large ambitions, although the U.S. government has imposed sanctions of its head and is threatening broader sanctions against the Russian oil industry.
A former JPMorgan Chase & Co trader has filed an appeal with a London tribunal court to challenge civil findings made by Britain’s financial watchdog against the bank over the “London Whale” debacle of 2012.
A committee of MPs has asked the most senior official at the Home Office for an explanation as it how his department lost 114 files relating to child sex abuse in Westminster in the 1980s.
* For most of America, Reno stirs images of worn-out casinos, strip clubs and quick divorces. But it is trying to change that reputation and reduce its reliance on gambling by taking advantage of its location and low taxes to gain a solid footing in the new economy. Instead of poker payouts, Reno now boasts of e-commerce ventures, an Apple data center and a testing ground for drones. It also hopes to attract a large factory to build batteries for Tesla’s electric vehicles. (http://nyti.ms/1myPzB1)
* As government regulators crack down on the financing of terrorists and drug traffickers, many big banks are abandoning the business of transferring money from the United States to other countries, moves that are expected to reverse years of declines in the cost of immigrants sending money home to their families. (http://nyti.ms/1r1Lftn)
* General Motors’ OnStar system provides streams of data about the performance of GM vehicles, but the automaker says little about how it uses this information to investigate problems. (http://nyti.ms/1qCnfhi)
* Twitter Inc’s top executive ranks have been transformed in the last year, from its general counsel to, most recently, its chief financial officer. But in one very important area of the company – Twitter’s ad business – the leadership has remained relatively untouched. (http://nyti.ms/1myQelL)
* The Obama administration on Sunday sought to play down new disclosures that the National Security Agency has swept up innocent and often personal emails from ordinary Internet users as it targets suspected terrorists in its global surveillance for potential threats. (http://nyti.ms/1r1LRiM)
* As Google engine restores links that it had removed to comply with a court order, its handling of the “right to be forgotten” becomes murkier. (http://nyti.ms/1xDCtot)
SOUTH CHINA MORNING POST
— Mainland loan guarantors have found themselves ensnared in the woes of the underground banking sector following a fresh wave of bankruptcies. (bit.ly/1j7kjIC)
— Employee protection will be a key consideration for lawmakers deciding whether to support the introduction of U.S. style Chapter 11 bankruptcy legislation in Hong Kong, the South China Morning Post has been told. (bit.ly/1r1GY9b)
— Beijing has announced a new regulation designed to improve the central government’s tax collection from overseas mainland companies, including those controlled in Hong Kong. (bit.ly/1pTh4rk)
— Financial Secretary John Tsang Chun-wah has voiced concern that the Legislative Council will not be able to complete vetting of the more than 50 funding requests and government bills with just a week left before the summer recess. (bit.ly/1qCiwMv)
— The Hong Kong Journalists Association has set up a self-censorship monitoring committee, after saying press freedom is facing its darkest period in decades. (bit.ly/1qCiDHU)
HONG KONG ECONOMIC JOURNAL
— Hong Kong Airlines is preparing to raise a combined US$500 million, which could be Hong Kong’s first initial public offering to raise funds in yuan and Hong Kong dollars, according to a source.
— Two second-hand apartments were sold for a record sum on Sunday for an estate in New Territories as demand for secondary units keeps rising due to limited supply.
HONG KONG ECONOMIC TIMES
— Ka-keung Chan, Secretary for Financial Services and the Treasury, said risks for the city’s real estate market have not subsided from two years ago and the government would not loosen property tightening measures after global hot money started flowing into Hong Kong recently.
— Financial Secretary John Tsang Chun-wah said in his blog Hong Kong may record a “significant increase” for home prices in May.
– China marks the 77th anniversary of the start of its anti-Japanese war on Monday, vowing that it will not let historical tragedy to repeat, the newspaper, which is the mouthpiece of the ruling Communist Part of China, said in an editorial.
– Germany is willing to help China’s relatively backward western part achieve sustainable development during its ongoing urbanisation, Chancellor Angela Merkel said in the southwestern Chinese city of Chengdu on Sunday.
CHINA SECURITIES JOURNAL
– Chinese stock regulator’s move towards strengthening delisting rules and their implementation will help improve the health of the stock market and the quality of listed companies, analysts say.
– Speculation about new listings in China’s stock market will cause investors dearly and damage the health of the market, the newspaper said in a commentary.
SHANGHAI SECURITIES NEWS
– China is likely to relax rules on how asset managers can utilise their quotas under the Renminbi Qualified Foreign Institutional Investor (RQFII) programme, that permits overseas investors to use offshore yuan funds to invest in the mainland’s capital markets.
CHINA BUSINESS NEWS
– Chinese regulators have apparently stepped up their efforts to clamp down on inside trading and clean up the stock market with an announcement of more fund managers being handed over to police for irregularities, analysts say.
HINDUJAS URGE UK TO FINANCE MUMBAI-BANGALORE CORRIDOR
Britain’s wealthiest family has called on David Cameron to finance one of India’s most ambitious infrastructure projects to boost business ties between the countries.
CRACKDOWN ON CONMEN WHO USE FAKE GOVERNMENT WEBSITES
Five men have been arrested for allegedly running “copycat” government websites that dupe Britons into paying unnecessary “administration fees” when ordering new passports or car tax discs online.
REGIONS GET 6 BLN STG INJECTION FROM ‘ECONOMIC REVOLUTION’
Businesses and councils across England have been handed 6 billion pounds ($10.2 billion) of public money in what the government called a “revolution in the way our economy is run”.
EDF IN LINE FOR 800 MLN STG WINDFALL FROM SUBSIDY SCHEME TO KEEP LIGHTS ON
EDF, which operates most of Britain’s nuclear power stations, could be in line for an 800 million pound windfall via a loophole in a government subsidy scheme aimed at keeping the lights on at times of peak demand.
IMF CHIEF HINTS AT CUT IN GROWTH FORECASTS
Global economic activity should strengthen in the second half of the year and accelerate in 2015, although momentum could be weaker than expected, Christine Lagarde, head of the International Monetary Fund, said on Sunday, hinting at a slight cut in the fund’s growth forecasts.
SNP’S ‘RETRIBUTION THREAT’ TO PRO-UK SCOTTISH FIRMS
Business leaders have been threatened with “retribution” by the SNP if they speak out against Scottish independence, it will be claimed on Monday.
CBI’S RAKE BOWS OUT OF RACE FOR BARCLAYS JOB
The CBI president Sir Mike Rake has bowed out of the race to become the next chairman of Barclays, even as the bank attempts to contain the fallout from a string of new regulatory probes.
Fly On The Wall 7:00 AM Market Snapshot
No major domestic economic reports scheduled for today.
Acuity Brands (AYI) upgraded to Buy from Hold at BB&T
Alliance Holdings (AHGP) upgraded to Strong Buy from Market Perform at Raymond James
Applied Industrial (AIT) upgraded to Buy from Hold at BB&T
Applied Materials (AMAT) upgraded to Overweight from Neutral at JPMorgan
Associated Banc-Corp (ASBC) upgraded to Market Perform at Raymond James
Century Aluminum (CENX) upgraded to Neutral from Sell at Goldman
Charles Schwab (SCHW) upgraded to Market Perform from Underperform at Raymond James
Devon Energy (DVN) upgraded to Buy from Neutral at Citigroup
King Digital (KING) upgraded to Overweight from Neutral at Piper Jaffray
Norcraft (NCFT) upgraded to Buy from Hold at KeyBanc
SeaWorld (SEAS) upgraded to Buy from Neutral at Longbow
Southern Copper (SCCO) upgraded to Outperform from Market Perform at BMO Capital
Ultratech (UTEK) upgraded to Buy from Neutral at BofA/Merrill
Vantiv (VNTV) reinstated with an Overweight from Equal Weight at Barclays
Western Refining (WNR) upgraded to Buy from Neutral at Citigroup
Williams-Sonoma (WSM) upgraded to Buy from Neutral at BofA/Merrill
Bed Bath & Beyond (BBBY) downgraded to Underperform from Neutral at BofA/Merrill
CDW Corporation (CDW) downgraded to Market Perform from Outperform at Raymond James
Cinemark (CNK) downgraded to Neutral from Buy at B. Riley
Coeur Mining (CDE) downgraded to Hold from Buy at Deutsche Bank
Enanta (ENTA) downgraded to Market Perform from Outperform at JMP Securities
GT Advanced (GTAT) downgraded to Hold from Buy at Canaccord
GT Advanced (GTAT) downgraded to Neutral from Buy at UBS
Insight Enterprises (NSIT) downgraded to Underperform at Raymond James
JAVELIN Mortgage (JMI) downgraded to Sell from Neutral at Citigroup
Peabody (BTU) downgraded to Hold from Buy at Deutsche Bank
Regado Biosciences (RGDO) downgraded to Hold from Buy at Needham
Tidewater (TDW) downgraded to Underweight from Overweight at Morgan Stanley
UMB Financial (UMBF) downgraded to Underperform from Market Perform at Raymond James
Bazaarvoice (BV) coverage resumed with a Buy at B. Riley
Golar LNG (GLNG) initiated with a Buy at BofA/Merrill
Horizon Pharma (HZNP) assumed with an Overweight at Piper Jaffray
MobileIron (MOBL) initiated with a Buy at Goldman
MobileIron (MOBL) initiated with a Buy at Stifel
MobileIron (MOBL) initiated with an Overweight at Barclays
MobileIron (MOBL) initiated with an Overweight at Morgan Stanley
Nordic American Offshore (NAO) initiated with a Neutral at JPMorgan
Nordic American Offshore (NAO) initiated with an Outperform at Credit Suisse
Nordic American Offshore (NAO) initiated with an Overweight at Morgan Stanley
Rocket Fuel (FUEL) initiated with a Market Perform at Wells Fargo
Third Point Reinsurance (TPRE) assumed with a Neutral at Citigroup
Archer Daniels (ADM) announced plans to acquired WILD Flavors GmbH for EUR2.3B
Expedia (EXPE) said it will buy Australia’s Wotif Group for A$703M
Anglo American (AAUKY) to sell 50% interest in Lafarge Tarmac for minimum value of $1.5B to Lafarge (LFRGY)
SABMiller (SBMRY) to sell stake in Tsogo Sun Holdings through a combination of an institutional placing and a buy back buy Tsogo Sun following the completion of a strategic review
Penford (PENX) reports Q3 EPS 24c, one estimate 21c
Lion Capital demands Charney reinstated to American Apparel (APP), Bloomberg reports
American Apparel (APP) in financing talks with Standard General, WSJ reports
Amazon’s (AMZN) Luxembourg operations included in EU tax inquiry, WSJ reports
Microsoft taxes probed as EU questions Luxembourg, Bloomberg says
Boeing (BA) assesses damage to aircraft parts from train derailment, WSJ reports (BRK.A, SPR)
BHP Billiton (BHP) has six potential suitors looking at Nickel West unit, AFR reports
HSBC (HSBC) plans to shut Libyan operations, Bloomberg says
Google (GOOG) may have invested up to $500M to expand Shopping Express, Re/code says
Tesla (TSLA) to investigate fire in stolen Models S crash, Bloomberg says
DISH (DISH) could climb 20%, Barron’s says
PetSmart (PETM) could be smart bet, Barron’s says
Weight Watchers (WTW) still looks attractive, Barron’s says
Realogy (RLGY) could rebound to about $48, Barron’s says
Qualcomm (QCOM), NVIDIA (NVDA), Apple (AAPL), Google (GOOG) could benefit from connected cars, Barron’s says
Malibu Boats (MBUU) files to sell 4M shares of common stock
ModusLink (MLNK) files $100M mixed securities shelf
Repros Therapeutics (RPRX) files $100M mixed securities shelf