- Stick to tapering and rates pledge, says Boston Fed chief (FT)
- Turkey to let Iraqi Kurds reinforce Kobani as U.S. drops arms to defenders (Reuters)
- Obama makes rare campaign trail appearance, some leave early (Reuters)
- Japan GPIF to Boost Share Allocation to About 25%, Nikkei Says (BBG)... or three months of POMO
- Japan Stocks Surge on Report GPIF to Boost Local Shares (BBG)
- China Growth Seen Slowing Sharply Over Decade (WSJ)
- Russia, Ukraine Edge Closer to Natural-Gas Deal (WSJ)
- Leveraged Money Spurs Selloff as Record Treasuries Trade (BBG)
- After clashes, Hong Kong students, government stand their ground before talks (Reuters)
- Female cabinet members’ resignations undermine Abe’s recovery efforts in Japan (WaPo)
- Nigeria declared Ebola-free after containing virus (Reuters)
- Value Investors Hoarding Cash See Few Bargains After Rout (BBG)
Overnight Media Digest
WSJ
* Democrats, worried as polls show their chances of retaining control of the Senate dwindling, are plowing money into long-shot races in unexpected states. (http://on.wsj.com/1sEDmLA)
* In a blow to Prime Minister Shinzo Abe's government, Japan's industry minister announced her resignation on Monday over allegations of financial impropriety. Yuko Obuchi is the first cabinet minister to step down since Abe came to power in December 2012. (http://on.wsj.com/1CISk5O)
* The Fed is likely to end its bond-buying program this month even as market volatility and uncertainties about the global economy have rattled investors and led to some mixed messages from central-bank officials. (http://on.wsj.com/1CIRI07)
* An investor group from Hong Kong and Abu Dhabi is launching a bid to buy Reebok from Adidas in a move that would unwind a disappointing eight-year marriage of the sneaker makers. (http://on.wsj.com/1t1hDPt)
* Nearly six years after its near-death experience, Ally Financial Inc is nearly out from the U.S. government's clutches, and taxpayers are earning a profit of more than $1 billion as the firm heads out the door. (http://on.wsj.com/1sEDmLA)
* A lawsuit against Walgreen Co paints a picture of the rough and tumble maneuverings inside a company grappling with disappointing earnings, activist hedge funds and a major deal. The suit by former Chief Financial Officer Wade Miquelon alleges Walgreen's chief executive and a company board member defamed him in meetings with large shareholders that became the basis of a page-one article in The Wall Street Journal. (http://on.wsj.com/1wqJGJ7)
* Syngenta AG faces escalating legal battles over its sale of genetically engineered corn seeds that some farmers and agricultural companies say have roiled international grain markets this year. U.S. farmers in 11 states have sued Syngenta in federal courts during the past few weeks, alleging losses they say arose from the Swiss seed-and-chemical company's move to sell biotech seeds before the corn was approved by Chinese authorities for import there. (http://on.wsj.com/1y8kp5I)
* Pension-fund managers across the United States are rethinking their investments in hedge funds in the wake of a retreat by the California Public Employees' Retirement System. (http://on.wsj.com/10bZMdX)
* California is hoping to conjure some real-life jobs in the smoke-and-mirrors world of visual effects for movies and television shows-part of the state's latest attempt to win back its most famous industry. (http://on.wsj.com/10bZMdX)
* When cold weather looms across the United States, natural-gas prices usually rise. This year they are falling, after a record production boom nearly replenished stockpiles left at their lowest since 2003 by last winter's freeze. (http://on.wsj.com/1vzXaC7)
FT
European Commission President Jose Manuel Barroso has warned UK Prime Minister David Cameron that he will strive to write new EU freedom of movement rules for they are an integral part of Britain's internal market. Barroso said a proposal from the British Government to cap on immigration from Europe would probably breach EU rules.
Britain's financial watchdog aims to curb resource-heavy probe into alleged benchmark rigging. The financial regulator will issue a number of private warnings this year, what legal experts alert that it could lead to "enforcement by the back door".
London-based bitcoin exchange, Coinfloor, is planning to strengthen its trade operations by raising money from investors in order to trade a wide range of currencies and launch a bitcoin fund.
Royal Bank of Scotland Group Plc, which is set to enter the peer-to-peer lending market, marks the latest sign of alternative finance getting a grip by moving into the mainstream.
NYT
* Yahoo is betting that Tumblr's alliances with popular television shows like "The Voice" will help drive its growth. Still, 16 months after Yahoo Inc paid $1.1 billion for Tumblr, the company's investors are questioning the success of the acquisition. Independent online research firm eMarketer says that while Tumblr's growth rate is faster than that of competitors such as Pinterest or Instagram, its audience remains the smallest. (http://nyti.ms/1psBeTQ)
* On Sunday afternoon, IBM Corp issued a statement saying it would make an announcement on Monday. IBM did not provide any further details but analysts say the most likely possibility is that IBM's long-running negotiations to shed its computer chip manufacturing operations have resulted in a deal. (http://nyti.ms/1rVokgL)
* The Washington Post continued its expansion over the weekend by adding a national edition. Local newspapers across the nation can now deliver with their Sunday papers a 24-page color tabloid edition of the Washington Post. Stephen P. Hills, president and general manager of the Post, said by email that local newspapers would sell the weekly edition "as an add-on to their subscriptions" and that it would include local advertising. (http://nyti.ms/1psCDd1)
* The Federal Reserve still plans to wrap up its bond-buying campaign at the end of October and remains likely to raise interest rates in mid-2015, although it now seems less likely to act sooner, analysts say. (http://nyti.ms/1wYTLuQ)
Canada
THE GLOBE AND MAIL
** Ottawa continued to auction off stockpiled medical supplies to the public, even after the World Health Organization requested the protective gear amid an Ebola outbreak raging in West Africa. (http://bit.ly/1wqV73A)
** Ontario is considering funding spots for graduate students from abroad, bowing to pressure from universities that say their global competitiveness is harmed because they have to turn away qualified foreign applicants due to lack of money. (http://bit.ly/1t1QZGv)
** TransCanada Corp's C$11 billion Energy East pipeline project has run into another stumbling block in Quebec as public opposition mounts over a possible threat to the endangered beluga whales in the St Lawrence River. The Calgary-based pipeline company is still awaiting provincial government permission to continue its exploratory and drilling work on a planned export terminal at Cacoun. (http://bit.ly/1wqVGub)
NATIONAL POST
** Beginning next year, the Royal Canadian Mounted Police is aiming for the first time to enroll just as many women as men in its training academy in Regina. (http://bit.ly/1yQptic)
** Liberal leader Justin Trudeau said he would impose greater discipline on himself to avoid making off-the-cuff remarks that his opponents could use against him. In an interview with the Ottawa Citizen, Trudeau acknowledged that his own jokes had sometimes given political fodder to critics. (http://bit.ly/1ptdQph)
** Canada could generate up to C$32 billion more in exports over the next 10 years if it creates a yuan trading hub to do business in the world's fastest growing currency, the Canadian Chamber of Commerce said in a new report. The chamber joined the call of some of Canada's largest banks and financial institutions to promote Canada as a center for renminbi (yuan) trading. (http://bit.ly/1urKfhl)
China
SHANGHAI DAILY
- Violent clashes erupted in Hong Kong early on Sunday, despite the scheduling of two hours of talks on Monday between the government and students protest leaders.
CHINA DAILY
- The European Union has decided not to launch an anti-subsidies investigation into Chinese telecommunications equipment makers, helping avoid trade wars between the world's two major economies.
- The annual Beijing Marathon was held on Sunday as planned despite the heavy smog, while competitors wearing masks triggered controversy.
PEOPLE'S DAILY
- The fourth Plenary Session of the 18th Central Committee of the ruling Communist Party of China, which will start on Monday, will open a new page in the improvement of the country's legal system, this mouthpiece of the party said in an editorial.
CHINA SECURITIES JOURNAL
- The latest injection of liquidity into commercial banks by the People's Bank of China signalled the government's continued policy to conduct targeted easing to help curb the slowdown in China's economy, economists said.
SHANGHAI SECURITIES NEWS
- Five companies face delisting within 30 days after the China Securities Regulatory Commission on Friday issued new rules to get loss-making companies or those in violation of regulatory practices to delist.
Britain
The Times
VIRGIN WAITS BEFORE SEEKING ITS MONEY Days after a rival bank was forced to cancel its stock market flotation, Virgin Money <IPO-VMH.L> has delayed its own 2 billion pounds ($3.22 billion) listing because of the recent collapse in equities worldwide. The lender said that it planned to price its shares "as soon as constructive market conditions allow", but it would not complete a listing by the end of this month. (http://thetim.es/1sZRUH4) HEDGE FUNDS TO SNAP UP TESCO'S ASIA ASSETS Some of the world's largest private equity groups are planning to make offers for Tesco's 9 billion pound Asian business as the ailing supermarket group prepares to publish its delayed results next week. (http://thetim.es/1yPQ5jy)
The Guardian
BARROSO WARNS CAMERON THAT ARBITRARY MIGRATION CAP WOULD BREACH EU LAW UK Prime Minister David Cameron has suffered a blow to his EU reform plans after the outgoing president of the European commission, Jose Manuel Barroso, said an arbitrary cap on free movement within the EU would be incompatible with European law. (http://bit.ly/1yPTIGc) WATCHDOG TO PURSUE INQUIRY INTO SEX STING AGAINST MP BROOKS NEWMARK
The Independent Press Standards Organisation (Ipso) is to continue to investigate the Sunday Mirror for the sex sting carried out against MP Brooks Newmark even though the complaint against the newspaper has been dropped. This will be the first time that a press regulator has continued to investigate a complaint in the absence of a complainant. It follows new rules by the industry in the wake of the Leveson inquiry into the failures of newspaper publishers that followed the phone-hacking scandal. (http://bit.ly/1t3f1Sd)
The Telegraph
PRUDENTIAL BACKS 1 BLN STG TIDAL POWER PROJECT Prudential Plc is poised to become the key investor in a 1 billion pound tidal power station, securing the future of the infrastructure project. The FTSE 100 insurer, through its investment arm M&G, is to inject up to 100 million pounds in the Swansea Bay Tidal power station. The insurer will be the cornerstone investor in the project, which is scheduled to open in 2018. The backing from Prudential means the project is now likely to get the go ahead. (http://bit.ly/1nuphRN)
DELTA: AIRLINES WILL ALWAYS FIGHT FOR SPACE AT HEATHROW OVER GATWICK Delta Air Lines Inc, the US airlines giant, has warned that global carriers will continue to fight for space at Heathrow, even if Gatwick is selected for expansion. The carrier, which owns a 49 percent stake in Virgin Atlantic , said any solution to Britain's looming aviation capacity crunch must involve some expansion at Heathrow because the business traveller market surrounding the west London hub is too valuable to surrender. (http://bit.ly/1rm1Jdc)
Sky News
BRITISH FIRMS CONSIDER PAYING FOR EGG FREEZING British companies have said they would consider following Apple Inc and Facebook Inc's lead by paying for female staff to freeze their eggs. This week one of Europe's largest fertility clinics is opening on the edge of the city of London. (http://bit.ly/1wqyOei)
HURRICANE GONZALO TRIGGERS UK GALES ALERT
Gusts of up to 70mph threaten to cause travel disruption and difficult driving conditions as the tail end of Hurricane Gonzalo hits Britain. Gales are expected to affect much of the country on Tuesday, leading the Met Office to issue a "yellow" weather warning for most parts, including the Midlands, northern England, Wales, Northern Ireland, and western Scotland. (http://bit.ly/11So6BZ)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
No major domestic economic reports scheduled for today.
ANALYST RESEARCH
Upgrades
AIG (AIG) upgraded to Buy from Hold at Deutsche Bank
Align Technology (ALGN) upgraded to Buy from Neutral at Goldman
Align Technology (ALGN) upgraded to Outperform from Neutral at Credit Suisse
Alliance Holdings (ahgp) upgraded to Buy from Neutral at Citigroup
Allison Transmission (ALSN) upgraded to Outperform from Neutral at Credit Suisse
BNY Mellon (BK) upgraded to Neutral from Sell at Goldman
Brown Formanupgraded to Buy from Neutral at SunTrust
CONSOL (CNX) upgraded to Buy from Neutral at Citigroup
Comerica (CMA) upgraded to Market Perform from Underperform at Bernstein
Comerica (CMA) upgraded to Neutral from Reduce at Nomura
E-Trade (ETFC) upgraded to Conviction Buy from Buy at Goldman
Freeport McMoRan (FCX) upgraded to Neutral from Sell at Citigroup
Hospitality Properties (HPT) upgraded to Buy from Hold at Stifel
Intrawest Resorts (SNOW) upgraded to Buy from Neutral at Goldman
KeyCorp (KEY) upgraded to Buy from Hold at Deutsche Bank
Micron (MU) upgraded to Outperform from Sector Perform at Pacific Crest
Newmont Mining (NEM) upgraded to Buy from Neutral at Citigroup
News Corp. (NWSA) upgraded to Neutral from Underperform at Macquarie
Prosensa (RNA) upgraded to Overweight from Underweight at JPMorgan
Swift Transport (SWFT) upgraded to Buy from Neutral at Citigroup
TD Ameritrade (AMTD) upgraded to Buy from Neutral at Goldman
TerraForm Power (TERP) upgraded to Overweight from Neutral at JPMorgan
Unum Group (UNM) upgraded to Outperform from Market Perform at Raymond James
Western Alliance (WAL) upgraded to Outperform from Market Perform at Keefe Bruyette
Downgrades
Ambit Biosciences (AMBI) downgraded to Neutral from Buy at Citigroup
American Capital downgraded to Market Perform from Outperform at JMP Securities
Avista (AVA) downgraded to Sell from Neutral at UBS
BancFirst (BANF) downgraded to Market Perform from Outperform at Raymond James
CGG SA (CGG) downgraded to Sell from Neutral at Goldman
CareFusion (CFN) downgraded to Hold from Buy at Stifel
Cliffs Natural (CLF) downgraded to Sell from Neutral at Citigroup
DENTSPLY (XRAY) downgraded to Neutral from Buy at Goldman
Mead Johnson (MJN) downgraded to Hold from Buy at Deutsche Bank
PNC Financial (PNC) downgraded to Hold from Buy at Deutsche Bank
People's United (PBCT) downgraded to Market Perform from Outperform at Raymond James
Preferred Bank (PFBC) downgraded to Outperform from Strong Buy at Raymond James
Primerica (PRI) downgraded to Market Perform from Outperform at Raymond James
Principal Financial (PFG) downgraded to Market Perform from Outperform at Raymond James
Seadrill (SDRL) downgraded to Neutral from Buy at Citigroup
Stillwater Mining (SWC) downgraded to Neutral from Overweight at JPMorgan
Westar Energy (WR) downgraded to Neutral from Buy at UBS
Initiations
CONE Midstream (CNNX) initiated with a Neutral at Citigroup
CONE Midstream (CNNX) initiated with a Neutral at Goldman
CONE Midstream (CNNX) initiated with a Neutral at JPMorgan
CONE Midstream (CNNX) initiated with an Outperform at Credit Suisse
CONE Midstream (CNNX) initiated with an Outperform at RBC Capital
CONE Midstream (CNNX) initiated with an Outperform at RW Baird
CONE Midstream (CNNX) initiated with an Outperform at Wells Fargo
CyberArk (CYBR) initiated with a Hold at Deutsche Bank
CyberArk (CYBR) initiated with a Neutral at JPMorgan
CyberArk (CYBR) initiated with an Equal Weight at Barclays
FNFV (FNFV) initiated with an Outperform at Keefe Bruyette
MannKind (MNKD) initiated with a Neutral at Goldman
Medley Management (mdly) initiated with a Buy at Deutsche Bank
Medley Management (mdly) initiated with an Outperform at Credit Suisse
Pall Corp. (PLL) initiated with an Outperform at Cowen
Sensata (ST) reinstated with an Overweight at Barclays
Vail Resorts (MTN) initiated with a Neutral at Goldman
Vitae Pharmaceuticals (VTAE) initiated with a Buy at Stifel
Vitae Pharmaceuticals (VTAE) initiated with an Outperform at BMO Capital
Vitae Pharmaceuticals (VTAE) initiated with an Outperform at JMP Securities
COMPANY NEWS
GLOBALFOUNDRIES to acquire IBM's (IBM) microelectronics business for cash consideration of $1.5B that is expected to be paid to GLOBALFOUNDRIES by IBM over the next three years
Cleco (CNL) to be acquired by a group of North American long-term infrastructure investors led by Macquarie Infrastructure and Real Assets and British Columbia Investment Management Corporation, together with John Hancock Financial and other infrastructure investors for $55.37 per share in cash, or about $4.7B
Elliott Advisors expressed concerns over Family Dollar (FDO) merger, nominated slate of seven candidates for election to the Family Dollar board at the company’s annual meeting (DLTR, DG)
QEP Resources (QEP) sells midstream business to Tesoro Logistics (TLLP) for $2.5B (QEPM)
Honeywell (HON) sees $280B in business jet deliveries from 2014 to 2024
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
Hasbro (HAS)
Philips (PHG) reports Q3 net income EUR (103M) vs. EUR 281M last year
SAP (SAP) cuts FY14 operating profit view to EUR 5.6B-EUR 5.8B from EUR 5.8B-EUR 6B
SAP (SAP) reports Q3 Non-IFRS EPS EUR 0.84 vs EUR 0.78 last year
NEWSPAPERS/WEBSITES
Yahoo (YHOO) to unveil turnaround, M&A strategy on Tuesday, WSJ reports
Tesco (TSCDY) accounting probe reveals staff's 'inappropriate behavior,' Telegraph reports
Carnival (CCL) cruise passenger tests negative for Ebola, Reuters reports (TKMR, SRPT, BCRX, CMRX, NLNK)
Danone (DANOY) says not carrying out review on Mead Johnson (MJN) takeover, Reuters reports
CBS (CBS) could see 25% gain, Barron's says
Schlumberger (SLB) is inexpensive and has room to rise, Barron's says
Western Digital (WDC) looks like inexpensive big data play, Barron's says
Post Holdings (POST) shares look attractive, Barron's says
SYNDICATE
Adamis Pharmaceuticals (ADMP) files to sell 2.84M shares for holders
Community Financial (TCFC) files $75M mixed securities shelf
First Busey (BUSE) files $250M mixed securities shelf
Netlist (NLST) files $40M mixed securities shelf
Nuvilex files $50M mixed securities shelf
Sears (SHLD) files automatic mixed securities shelf