- House votes to arm Syrian rebels (Reuters).... aka ISIS
- Fed Plots Cautious Course on Rate Rises (Hilsenrath)
- Scots vote in independence referendum to seal the United Kingdom's fate (Reuters)
- Yes or No, the Winner of the Referendum Is Brand Scotland (BBG)
- Draghi Loan Plan Missing Estimates Hampers ECB Stimulus (BBG) - get with the spin, it simply means "Moar QE"
- Obama Plans to Tightly Control Strikes on Syria (WSJ)
- IMF warns of risks from 'excessive' financial market bets (Reuters)
- Russia Praises Ukraine's Autonomy Law for Rebel Areas (WSJ)
- Dollar hits six-year peak versus yen, ECB aims cash hose (Reuters)
- Missing Men in U.S. Workforce Risk Permanent Separation (BBG)
- What Lockup? Alibaba IPO Gives Insiders Rare Chance to Sell Early (WSJ)
- May I Borrow Your Shower? Ukraine Braces for Winter Cold (BBG)
- UBS in $1.4 Billion Test of French Tax-Evasion Crackdown (BBG)
- Apple to unveil new iPads, operating system on Oct. 21 (Reuters)
- Boeing-Lockheed Venture to Develop Rocket Engine With Bezos Startup (WSJ)
Overnight Media Digest
WSJ
* Federal Reserve officials plan to end the bond-buying program known as quantitative easing after October, hoping to finally stop expanding a six-year experiment in monetary policy that has left the Fed holding more than $4 trillion of Treasury and mortgage bonds. (http://on.wsj.com/1u1ZJO3)
* The U.S. military campaign against Islamist militants in Syria is being designed to allow President Barack Obama to exert a high degree of personal control, going so far as to require that the military obtain presidential signoff for strikes in Syrian territory, officials said. (http://on.wsj.com/1r0GWAe)
* A swath of early investors in Alibaba Group Holding Ltd will be able to sell more than $8 billion worth of shares on the day the Chinese e-commerce company goes public, an unusual arrangement that is influencing how bankers price the offering. (http://on.wsj.com/1mdxLMP)
* The Pentagon's premier satellite-launch provider has joined forces with Blue Origin, a space startup run by Amazon Inc CEO Jeff Bezos, to jointly develop a new rocket engine intended to eventually replace a Russian-built engine that now powers Atlas V rockets. (http://on.wsj.com/1r2kSUo)
* A few weeks after it became embroiled in a hacking scandal that resulted in the leak of nude celebrity photos, Apple Inc launched a campaign to explain how it handles users' personal information and to provide guidelines on protecting online accounts. (http://on.wsj.com/1r0IVo0)
* Tesla Motors Inc Chief Executive Officer Elon Musk said the technology to make a fully autonomous car will be ready in five or six years, and the result will be vehicles far less likely to harm occupants and others on the road. (http://on.wsj.com/1Dli2R3)
* The Justice Department has been unable to recover $97 billion arising from enforcement actions and other criminal cases, an amount that has tripled since 2004, highlighting prosecutors' challenges in tracking down money stolen from investors and others. The uncollected debts-which include criminal fines owed to the Justice Department from companies and individuals and restitution payable to investor victims-have grown because judgments have steadily increased but the percentage collected hasn't. (http://on.wsj.com/1rd2XvS)
FT
A European Central Bank led probe of the euro area banking sector has been billed as a once-and-for-all opportunity to kill the impending crisis of confidence that is hindering lending in the region.
A bug in HealthKit, Apple Inc's new health and fitness tracking software app, threatened to overshadow the launch of the company's new iOS 8 iPhone operating system on Wednesday. Many app developers found that their apps had been removed from Apple's App Store due to the unspecified bug.
Banks and insurers in Europe are bracing for extra value added tax bills that could run into billions of euros after an unexpected ruling by the European Court of Justice over a dispute between Skandia America Corporation and the Swedish tax authority.
The U.S. Department of Justice on Wednesday made its strongest warning yet to corporate America, signalling that it is preparing charges against individuals while also asking Congress to increase rewards for the co-operation of insiders. Wells Fargo & Co, the largest U.S. mortgage lender, said it would simplify lending requirements for people buying certain types of homes - a move to ramp up new mortgage lending.
NYT
* An expert panel voted overwhelmingly on Wednesday for the Food and Drug Administration to impose strict new limitations on the multibillion-dollar testosterone drug industry, recommending that the agency tighten labels for the medicines so they are not prescribed to men who only have problems related to aging, such as low energy and libido. (http://nyti.ms/1p1W1Ni)
* As hospitals merge and buy up physician practices, creating new behemoths, one federal agency is raising a lonely but powerful voice, suggesting that consumers may be victimized by the trend toward consolidation. The Federal Trade Commission says that mergers tend to reduce competition, and that doctors and hospitals can usually achieve the benefits of coordinated care without a full merger. (http://nyti.ms/1o4Pp0r)
* Blue Origin, a private space company owned by Amazon.com founder Jeff Bezos, said on Wednesday that it had agreed to work with a joint venture run by Boeing Co and Lockheed Martin Corp to build new engines for their Atlas 5 rockets. (http://nyti.ms/1yi5HNe)
* The Justice Department has a suggestion for banks hoping to avoid criminal charges: Rat out your employees. Marshall Miller, the No 2 official in the Justice Department's criminal division, detailed in a speech on Wednesday how banks would either earn credit for exposing nefarious individuals or face charges for protecting them. (http://nyti.ms/1mdJkUj)
* The U.S. Federal Reserve is in no hurry to raise interest rates. The economic recovery has stayed on course in recent months, and the Fed's policy-making committee said on Wednesday that it saw no reason to change its own plans, rejecting calls for a faster retreat from its long-running stimulus campaign. (http://nyti.ms/1s7JUFs)
Canada
THE GLOBE AND MAIL
** The Ontario government faces a potential bill of C$400 million ($364 million) to bail out U.S. Steel Canada Inc pensioners if the steel maker's pension plans are not restructured, the company's chief executive, Michael McQuade, warned in a court filing. (bit.ly/1ASPOsJ)
** Toronto Mayor Rob Ford, the controversial leader who captured international headlines for his admitted drug use and the devotion of his Ford Nation supporters, has been diagnosed with a malignant tumour in his abdomen identified as liposarcoma by the senior doctor in charge of his care. (bit.ly/1wr0dLB)
** More than 40,000 teachers will vote on Thursday on whether to accept a tentative six-year deal with the province of British Columbia. The agreement, reached between the provincial government and the B.C. Teachers' Federation early Tuesday morning, remains emotional for many educators, coming after five weeks of cancelled classes and all of summer school lost to one of the longest strikes in years. (bit.ly/1meumxb)
NATIONAL POST
** Monday's New Brunswick election is quickly becoming a debate on Canada's most restrictive abortion laws. Rookie Liberal leader Brian Gallant, whose party has advocated easing access to abortion but has himself tried to walk a fine line on the issue, was forced this week to address it head-on. (bit.ly/1ucdWEh)
** Quebecor Inc said it is open to joining forces with investors in Wind Mobile SA as the media company feels out potential partners for an effort to expand its wireless footprint across Canada. (bit.ly/1BP8jRi)
** Statistics Canada published its latest population projections on Wednesday. According to the report, Canada's population is projected to continue growing over the next 50 years. Under a medium-growth scenario, the population - 35.2 million in 2013 - is projected to reach 43.5 million in 2028 and 51 million in 2063. (bit.ly/1p28v7E)
China
CHINA SECURITIES JOURNAL
- China needs to speed up the development of futures management institutions to make the futures market more competitive, said Jiang Yang, vice-president of the China Securities Regulatory Committee (CSRC), at a seminar on Wednesday.
SECURITIES TIMES
- China will launch 12 new stock indexes on Oct. 17, including two indexes measuring the health of 400 and 1,000 Shanghai- and Shenzhen-listed companies respectively, according to an announcement by the China Securities Index Co., Ltd published on Thursday.
SHANGHAI DAILY
- The State Council, China's cabinet, said at a meeting on Wednesday that from Oct. 1 to the end of 2015, any firm with a monthly revenue of less than 30,000 yuan ($4,887.19) will be exempt from value-added tax (VAT) and business tax.
CHINA DAILY
- China should plan an integrated renminbi clearing facility with the Association of Southeast Asian Nations to encourage regional trade and investment, said Cao Tong, the vice-president of the Export-Import Bank of China on Wednesday.
Britain
The Times
ED BRAMSON UNLEASHES BROADSIDE AT ELECTRA TRUST AND ITS BOARD Ed Bramson, the corporate raider laying siege to the 1.1 billion pounds ($1.79 billion) Electra Private Equity investment trust, has broken his silence to accuse the company of a string of shortcomings. Bramson, whose Sherborne Investors (Guernsey) B group began to build a stake in Electra in February, accused the company of flattering its investment performance, botching its balance sheet management and paying excessive fees to its external fund manager. (http://thetim.es/1qM1U74)
BSKYB OFFER TOO LOW, SAYS SKY DEUTSCHLAND The board of Sky Deutschland has recommended that minority shareholders vote against BSkyB's offer to buy a controlling stake in the German pay TV operator, claiming that the 6.75 pounds per share offer is too low. Sky Deutschland's board said that BSkyB's offer, at a 40 cent premium to the share price before the deal was revealed, undervalues the company. However, they did not object to the rationale for the deal, saying that the companies "ideally complement each other". (http://thetim.es/1BNGQzm)
The Guardian EUROZONE INFLATION HIGHER THAN ESTIMATED Inflation across the euro currency area was higher than previously estimated in August, according to revised data from the EU's statistics office. Consumer inflation across the 18 countries using the euro rose 0.1 percent month-on-month in August to give a 0.4 percent year-on-year increase, Eurostat said, following a first estimate of 0.3 percent last month. (http://bit.ly/1sqlFwr) UK UNEMPLOYMENT RATE FALLS TO LOWEST LEVEL SINCE 2008 FINANCIAL CRISIS The City is ruling out a rise in interest rates this year amid evidence that a fresh fall in unemployment to its lowest levels since the height of the financial crisis has failed to reignite pay growth. Data from the Office for National Statistics showed that joblessness on the internationally agreed yardstick was 468,000 lower in the three months to July than in the same quarter of 2013 - the biggest annual decline since the Lawson boom was raging in 1988. (http://bit.ly/XBijOQ)
The Telegraph EUROPEAN COURT ADDS HUNDREDS OF MILLIONS TO UK BANK TAXES Banks operating in the UK face extra tax payments worth hundreds of millions of pounds under rules enforced by Europe's top court. The European Court of Justice dictated on Wednesday that VAT must be charged on services provided to companies by their overseas offices. (http://bit.ly/1o4bCvO)
SALMOND'S OIL BOOM CLAIMS BLOWN APART BY SCOTTISH ENERGY CONSULTANT Scottish First Minister Alex Salmond's claim that an independent Scotland could expect 1.5 trillion pounds ($2.44 trillion) of revenue from the North Sea's remaining oil and gas reserves have been shot down in the final hours of the referendum campaign by one of Scotland's most respected energy consultants. (http://bit.ly/1BMuV4K)
Sky News
ALEX SALMOND: NO ONE CAN STOP SCOTLAND USING POUND
Scottish National Party leader Alex Salmond has insisted an independent Scotland could not be prevented from using the pound. Salmond reiterated his desire to hold on to sterling, saying: "It's sensible - England is our biggest trading partner, and Scotland is England's second-biggest trading partner after the US. There will be a common sense agreement for a common currency." (http://bit.ly/1wF0Lk1)
The Independent
SCOTTISH INDEPENDENCE: BANK OF ENGLAND 'MUST BE ON ALERT FOR NORTHERN ROCK STYLE DEPOSIT FLIGHT IF YES WINS' The Bank of England will need to be on guard against a possible "deposit flight" from Scotland similar to Northern Rock after tomorrow's referendum vote, John Gieve, deputy governor for financial stability of Bank of England said. (http://ind.pn/1p1ywUJ)
Fly On The Wall Pre-market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
Jobless claims for week of September 13 at 8:30--consensus 305K
Housing starts for August at 8:30--consensus down 5.2% to 1.038M rate
Housing permits for August at 8:30--consensus down 1.6% to 1.055M rate
ANALYST RESEARCH
Upgrades
ArcelorMittal (MT) upgraded to Buy from Neutral at BofA/Merrill
Boston Properties (BXP) upgraded to Buy from Hold at Stifel
DuPont Fabros (DFT) upgraded to Overweight from Equal-Weight at Evercore
DuPont (DD) upgraded to Overweight from Neutral at JPMorgan
Kohl's (KSS) upgraded to Buy from Neutral at Citigroup
Medivation (MDVN) upgraded to Buy from Hold at Canaccord
Monsanto (MON) upgraded to Buy from Hold at Stifel
Partner Communications (PTNR) upgraded to Neutral from Sell at Goldman
Downgrades
Auxilium (AUXL) downgraded to Market Perform from Outperform at Leerink
Denbury Resources (DNR) downgraded to Sector Perform from Outperform at RBC Capital
Owens-Illinois (OI) downgraded to Neutral from Outperform at RW Baird
Peabody (BTU) downgraded to Sell from Neutral at Goldman
Pier 1 Imports (PIR) downgraded to Equal Weight from Overweight at Barclays
Pier 1 Imports (PIR) downgraded to Market Perform from Outperform at Wells Fargo
Siemens (SIEGY) downgraded to Neutral from Outperform at Exane BNP Paribas
Southwestern Energy (SWN) downgraded to Sector Perform from Outperform at RBC Capital
Initiations
Alibaba (BABA) initiated with a Buy at CRT Capital
Boulder Brands (BDBD) initiated with a Neutral at Piper Jaffray
Cogent (CCOI) initiated with an Overweight at JPMorgan
Coty (COTY) coverage assumed with an Overweight at Piper Jaffray
Estee Lauder (EL) coverage assumed with a Neutral at Piper Jaffray
FCB Financial (FCB) initiated with a Market Perform at Keefe Bruyette
Helen of Troy (HELE) initiated with an Overweight at Piper Jaffray
Inter Parfums (IPAR) coverage assumed with a Neutral at Piper Jaffray
InterOil (IOC) initiated with an Outperform at Credit Suisse
Jarden (JAH) initiated with an Overweight at Piper Jaffray
Level 3 (LVLT) initiated with an Overweight at JPMorgan
Parker-Hannifin (PH) initiated with a Hold at Deutsche Bank
Rentrak (RENT) initiated with a Buy at Wunderlich
SFX Entertainment (SFXE) initiated with a Buy at Maxim
Sprouts Farmers Markets (SFM) initiated with a Neutral at Piper Jaffray
Tornier (TRNX) coverage assumed with an Overweight at Barclays
Vince Holding (VNCE) initiated with a Buy at B. Riley
WhiteWave Foods (WWAV) initiated with an Overweight at Piper Jaffray
COMPANY NEWS
Bayer (BAYRY) to float MaterialScience as separate company
Toshiba (TOSBF) said it would reduce PC division workforce by 900 employees
Amazon (AMZN) introduced the Kindle Voyage and $79 Kindle, as well as new Fire HD and Fire HD Kids Edition
Apple (AAPL) said it will never allow government access to servers
World Wrestling Entertainment (WWE) announced a partnership with FOX Sports Latin America (FOXA)
Flexion (FLXN) announced that the FDA put a clinical hold on Phase 2b FX006 trial enrollment
Agilent (A) board approved separation of Keysight. The company also said Mike McMullen would succeed Bill Sullivan as CEO in March 2015 and declared a special dividend
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
IHS Inc. (IHS), Clarcor (CLC), United Natural Foods (UNFI)
Companies that missed consensus earnings expectations include:
Five Star Quality (FVE), Pier 1 Imports (PIR)
Companies that matched consensus earnings expectations include:
Herman Miller (MLHR)
NEWSPAPERS/WEBSITES
Boeing (BA), Lockheed Martin (LMT) to team with Bezos firm on rocket engine, WSJ reports (AMZN)
CBS (CBS) CEO looks to reduce radio assets within 12 months, Reuters reports
Report says one iPhone 6 Chinese license approved, Reuters says (AAPL)
Tesla (TSLA) CEO sees self-driving car technology ready in five or six years, WSJ reports
Warner Bros. (TWX) could cut up to 1,000 jobs, Variety reports
Apple (AAPL) wants to sell 50M Apple Watches in 2015, DigiTimes reports
FedEx (FDX) could reach new highs, Barron's says
SYNDICATE
Diamondback Energy (FANG) files to sell 2.5M shares for holders
EPR Properties (EPR) files to sell 3.2M shares of common stock
New Media (NEWM) files to sell 6.5M shares of common stock
Oncothyreon (ONTY) fiels to sell common stock, convertible preferred stock
Sun Communities (SUI) files to sell 6M shares of common stock