- Economists sceptical ECB bond-buying would revive eurozone (FT)
- Indonesia naval captain says may have located missing plane's tail section (Reuters)
- Oil hits five and a half year low under $55 (Reuters)
- Samaras Warns of Euro Exit Risk as Greek Campaign Starts (BBG)
- The death of active investing: Vanguard Sets Record Funds Inflow (WSJ) - thank you Fed
- Oil Downturn Has Many Wondering How Lone Star State Will Weather a Bust (WSJ)
- Hollande Says France Must Exceed 1% Economic Growth to Spur Jobs (BBG)
- Jury selection begins in trial of accused Boston Marathon bomber (Reuters)
- UK construction expands at slowest since July '13 (FT) - must be the brick shortage
- Afghan president says U.S. might want to 're-examine' pullout deadline (Reuters)
- Credit Hedge Funds Game `Stupid’ Wall Street to Top 2014 Ranking (BBG)
- U.S. Company-Bond Market Set for Flurry of Sales Amid Maturities (BBG)
- Americans on the move want warmth, affordability (Reuters)
Overnight Media Digest
WSJ
* U.S. officials are taking their first crack at writing rules for payday loans, responding to concerns that the short-term, high-rate debt can trap consumers in a cycle of borrowing they can't afford. (http://on.wsj.com/1xvFkBJ)
* The downturn in energy prices has triggered debate over whether Texas simply got lucky in recent years or whether it hit on an economic playbook that other states could emulate. (http://on.wsj.com/14bQfVt)
* Firms ranging from JP Morgan Chase & Co to Discover Financial Services Inc are expected to roll out more than a half-billion new credit cards embedded with computer chips that create a unique code for each transaction, making counterfeiting much more difficult. However, the new cards don't use some technology that could prevent fraud if a card is lost or stolen. (http://on.wsj.com/1Iei9NS)
* Investors gave stock pickers a resounding vote of no confidence in 2014, pouring $216 billion - a record inflow for any mutual-fund firm - into Vanguard Group, the biggest provider of index-tracking products, according to preliminary figures from the mutual-fund group. (http://on.wsj.com/1wPbjYk)
* U.S. companies are adding employees at the fastest rate in years. But those workers aren't filling up office buildings like they used to. While the labor force finally has pushed past its prerecession peak, readings on office-space usage have barely budged. Companies' desire to cut costs has made many reluctant to take additional space until absolutely necessary. (http://on.wsj.com/1rVTLyn)
* In an international mystery that has captivated Moscow's investment community, the founder of Blackfield Capital, once one of Russia's hottest hedge funds, is missing, allegedly along with the firm's assets. (http://on.wsj.com/1xrQ0Sf)
* DreamWorks Animation SKG Inc is shaking up its creative ranks after a series of disappointments at the box office. The company's chief creative officer, Bill Damaschke, is stepping down, and veteran producers Bonnie Arnold and Mireille Soria will take over as co-presidents of feature animation, the entertainment studio announced Sunday. (http://on.wsj.com/1tJr210)
* General Motors Co will soon offer retailers another way to reach customers more directly while they are behind the wheel. The Detroit auto giant, which offers high-speed Wi-Fi in its vehicles, is introducing a new in-car service this year allowing drivers to get coupons from local retailers and make hotel reservations while driving down the road. (http://on.wsj.com/1Dn2zhV)
FT
British Prime Minister David Cameron suggested a Conservative government could bring forward a popular vote on Britain's European Union membership, indicating the prime minister does not want the question of Europe to influence a second term in government.
The next government will risk a "public backlash" unless it is able to support annual funding increases for the health service, head of England's National Health Service Simon Stevens said.
Britain's political leaders will on Monday embark on a four-month general election campaign, as the three main political parties set out their proposals in what could be the tightest and most unpredictable race since the 1970s.
Norway is close to agreeing to a deal with the UK to invest 2 billion euros ($2.39 billion) to build a 700-kilometre (434.96 miles) underwater power line that would allow the UK to import hydroelectric power as Britain tries to solve the squeeze on its fragile generating capacity.
NYT
* Sales of Microsoft's Xbox One and Nintendo's Wii U are improving, eroding what was once a strong lead for Sony's PlayStation 4. (nyti.ms/1ByUnKp)
* The Securities and Exchange Commission, generally seen as the defender of shareholder interests, is siding with companies keen to keep investors out of the nomination process. The skirmish unfolding at Whole Foods Market highlights an issue that is likely to play a prominent role in the 2015 proxy season. (nyti.ms/1D8OHur)
* Amazon's "all you can eat" reading service, Kindle Unlimited, is driving down prices even as it boosts sales. For self-published authors, that's a cause for concern. (nyti.ms/1HwEQhK)
* Investors bought into nearly $250 billion in global IPOs in 2014. Even excluding the $25 billion Alibaba offering, a phenomenon in its own right, the value of worldwide initial public offerings was up nearly 36 percent over 2013. (nyti.ms/1vQfWl0)
Canada
THE GLOBE AND MAIL
** Ontario's premier Kathleen Wynne said the province was ready to shield Canada from the economic tsunami caused by declining oil prices and a sinking dollar. "We have a diverse economy and it can be a buffer, in a time like this, against some of that volatility," Wynne said in an interview. (http://bit.ly/13SpuoJ)
** Air Canada will begin negotiations with Unifor, a body representing ticket agents, gate agents, customer service representatives and others, to make up some ground its members lost when the company made dramatic cuts and filed for bankruptcy protection in 2003. (http://bit.ly/1BpnBgu)
** Canada's defense department is expected to provide an update on Canadian military mission in Iraq as part of the international campaign against the Islamic State of Iraq and Levant. (http://bit.ly/14oRm57)
NATIONAL POST
** Tobogganing is coming under threat in cities across the United States and Canada. Hamilton, a city in Ontario, has restricted sledding on pain of a hefty fine for almost 15 years. In Toronto, a bylaw has pushed kids off Etobicoke's Centennial Park Ski Hill for the past several years, deeming it too dangerous. Particularly icy weather conditions will also prompt warnings in Edmonton and elsewhere. (http://bit.ly/1Dl6o7s)
** Assisted suicide expert and criminology instructor Russel Ogden hasn't been seen at scandal-plagued Kwantlen Polytechnic University (KPU) since 2008. However, he continues to draw his KPU salary even when the criminologist hasn't taught a single course at the university in six years. (http://bit.ly/1wPzfLf)
** Thousands of officers from the New York Police Department turned their backs on Sunday as they watched the city's Mayor Bill de Blasio eulogize an officer shot dead with his partner, repeating a stinging display of scorn for the mayor despite entreaties from the police commissioner not to do so. (http://bit.ly/1AoPOCQ)
China
SHANGHAI SECURITIES NEWS
- China's economic growth is likely to continue slowing down in the first quarter of 2015 after the country posted a slew of weak data for the fourth quarter of 2014, economists said.
CHINA SECURITIES JOURNAL
- In 2015, China's stock market is likely to continue its strong rally seen in the second half of last year, buoyed by official reforms, but is also likely to experience more volatility, analysts said.
PEOPLE'S DAILY
- A commentary by this mouthpiece of the ruling Communist Party of China warns officials of potential corruption via gifts during the lunar new year holidays, which fall in mid-February this year, amid Beijing's on-going sweeping anti-corruption campaign.
CHINA DAILY
- China's Premier Li Keqiang helped process the first loan by online lender WeBank, one of five privately-owned banks given approval last year to open in the country.
- China's army launched a procurement website on Sunday to attract bids from private firms on weapons and equipment contracts.
SHANGHAI DAILY
- Shanghai authorities are mulling the cancellation of the annual lantern festival after 36 died in the city following a stampede during New Year's Eve celebrations.
Britain
The Times
Manufacturers' confidence has collapsed over the past 12 months, dragged down by fears for the economies of Britain's trading partners in the euro zone and political uncertainties surrounding Russia and the rise of Islamic State. (http://thetim.es/13RueuD)
C&C Group is expected to withdraw its interest in bidding for Spirit Pub Company next week, leaving the way clear for Greene King Plc to complete a recommended 1.35 billion pound ($2.07 billion) takeover of the Chef & Brewer operator. (http://thetim.es/1tB3QML)
The Guardian
Overall debt is falling as a ratio of household income, but it is rising fast for a large and growing minority of already stretched poorer and younger households in the UK. (http://bit.ly/13Ryfzp)
The financial markets are calm despite prospects of an anti-austerity anti-euro victory for the left in Greece which could heavily affect the UK in 2015. (http://bit.ly/1zN1LiT)
The Telegraph
Fears of a talent shortage at the Bank of England's financial regulator have been raised by new figures showing almost one in six staff leaving in the last year. (http://bit.ly/14bkhbT)
Britain's supermarkets are building on just 6 percent of the land they control across the UK, underlining the problem they face with undeveloped sites as the industry battles tumbling sales. (http://bit.ly/1Byg9Op)
Sky News
The Anglo-South African financial services group Investec Plc has joined a cluster of international banks eyeing bids for the international arm of Coutts, the wealth manager whose customers include Her Majesty The Queen. (http://bit.ly/1KcZPby)
The administrators of courier firm City Link have announced 2,356 job losses after a bid to buy the company failed. (http://bit.ly/1ByhtRt)
The Independent
UK banks must go far beyond bolstering financial strength to restore confidence after recent scandals and should guard against complacency about possible cyber attacks, the Bank of England warned today. (http://ind.pn/1APwrlw)
Black Friday brought chaos to the nation but it clearly paid off for retailers as Britons splashed 7.9 billion pounds every week last month in the biggest shopping frenzy for a decade. (http://ind.pn/13RBN4J)
Fly On The Wall Premarket Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
ISM New York for December at 9:45--prior reading 62.4
ANALYST RESEARCH
Upgrades
Becton Dickinson (BDX) upgraded to Strong Buy from Market Perform at Raymond James
Boston Properties (BXP) upgraded to Top Pick from Outperform at RBC Capital
C.R. Bard (BCR) upgraded to Equal Weight from Underweight at Morgan Stanley
CF Industries (CF) upgraded to Overweight from Neutral at Piper Jaffray
Carnival (CCL) upgraded to Outperform from Market Perform at Raymond James
Coca-Cola Enterprises (CCE) upgraded to Neutral from Underperform at BofA/Merrill
Cognizant (CTSH) upgraded to Buy from Neutral at Goldman
Domino's Pizza (DPZ) upgraded to Buy from Neutral at Janney Capital
El Pollo Loco (LOCO) upgraded to Outperform from Neutral at RW Baird
F5 Networks (FFIV) upgraded to Outperform from Perform at Oppenheimer
Hill-Rom (HRC) upgraded to Equal Weight from Underweight at Morgan Stanley
LPL Financial (LPLA) upgraded to Outperform from Market Perform at Wells Fargo
La Quinta (LQ) upgraded to Buy from Neutral at Goldman
LabCorp (LH) upgraded to Buy from Neutral at Citigroup
lululemon (LULU) upgraded to Outperform from Market Perform at William Blair
Maxim Integrated (MXIM) upgraded to Outperform from Neutral at Macquarie
Merck (MRK) upgraded to Outperform from Market Perform at Bernstein
Novartis (NVS) upgraded to Outperform from Market Perform at Cowen
ON Semiconductor (ONNN) assumed with a Neutral from Sell at Citigroup
PG&E (PCG) upgraded to Overweight from Equal Weight at Barclays
Potbelly (PBPB) upgraded to Outperform from Neutral at RW Baird
Radware (RDWR) upgraded to Outperform from Perform at Oppenheimer
TreeHouse (THS) upgraded to Buy from Underperform at BofA/Merrill
Zimmer (ZMH) upgraded to Overweight from Equal Weight at Morgan Stanley
Downgrades
Akamai (AKAM) downgraded to Sector Perform from Outperform at Pacific Crest
Alexion (ALXN) downgraded to Neutral from Buy at Nomura
Baxter (BAX) downgraded to Underweight from Equal Weight at Morgan Stanley
Buffalo Wild Wings (BWLD) downgraded to Neutral from Outperform at RW Baird
CGI Group (GIB) downgraded to Neutral from Buy at Goldman
CenterPoint Energy (CNP) downgraded to Neutral from Outperform at Macquarie
Chevron (CVX) downgraded to Neutral from Buy at Citigroup
Dr Pepper Snapple (DPS) downgraded to Neutral from Buy at BofA/Merrill
Eni SpA (E) downgraded to Sell from Neutral at Citigroup
Felcor Lodging (FCH) downgraded to Neutral from Buy at Goldman
Ford (F) downgraded to Neutral from Buy at Citigroup
General Mills (GIS) downgraded to Underperform from Neutral at BofA/Merrill
Green Plains (GPRE) downgraded to Neutral from Overweight at Piper Jaffray
Helen of Troy (HELE) downgraded to Neutral from Overweight at Piper Jaffray
Humana (HUM) downgraded to Market Perform from Outperform at Raymond James
Linear Technology (LLTC) downgraded to Neutral from Outperform at Macquarie
PPL Corp. (PPL) downgraded to Hold from Buy at Jefferies
Repsol (REPYY) downgraded to Neutral from Buy at Citigroup
SYNNEX (SNX) downgraded to Market Perform from Outperform at Raymond James
Select Medical (SEM) downgraded to Neutral from Outperform at RW Baird
Starbucks (SBUX) downgraded to Neutral from Buy at Janney Capital
Teleflex (TFX) downgraded to Equal Weight from Overweight at Morgan Stanley
Ventas (VTR) downgraded to Outperform from Top Pick at RBC Capital
West Corp. (WSTC) downgraded to Neutral from Buy at Goldman
Willbros Group (WG) downgraded to Hold from Buy at Stifel
Xylem (XYL) downgraded to Hold from Buy at Stifel
Initiations
Brookfield Infrastructure (BIP) initiated with an Equal Weight at Barclays
Brookfield Renewable (BEP) initiated with an Overweight at Barclays
Columbia Sportswear (COLM) initiated with a Market Perform at Wells Fargo
Green Plains (GPRE) initiated with a Buy at Roth Capital
Pacific Ethanol (PEIX) initiated with a Buy at Roth Capital
Qorvo (QRVO) initiated with an Equal Weight at Barclays
COMPANY NEWS
Amazon (AMZN) announced that sellers on Amazon sold a record-setting more than 2B items worldwide in 2014
Nissan (NSANY) reported December U.S. sales up 6.9% to 117,318 units
Wet Seal (WTSL) defaulted on $27M senior convertible note
BreitBurn (BBEP) estimated preliminary FY14 production approximately 14.1 MBoe, sees FY15 total production 19,500-20,700 MBoe. BreitBurn also reduced cash distribution to 8.33c per common unit for the first month attributable to Q4, or $1.00 per unit on an annualized basis
EARNINGS
Mazor Robotics (MZOR) sees Q4 revenue $5.7M, consensus $6.73M, sees FY14 revenue $21M, consensus $22.19M
BreitBurn Energy (BBEP) sees FY15 adjusted EBITDA in $650M-$700M range
NEWSPAPERS/WEBSITES
GM (GM) unveils new in-car service connecting drivers to retailers, WSJ reports
American Airlines (AAL) pilot union to vote on proposed contract, WSJ reports
Twitter (TWTR) set to launch native video platform, Business Insider reports
Investec interested in RBS' (RBS) Coutts International, Sky News reports
GFI (GFIG) employees seek to leave if BGC (BGCP) bid succeeds, FT reports
Netflix (NFLX) begins blocking users who dodge regional restrictions, Engadget reports
NASDAQ (NDAQ) set to acquire Dorsey Wright for $225M, FT reports
Cinemark (CNK) stock looks cheap, Barron's says
BorgWarner (BWA) could rise 23% to $67 per share, Barron's contends
Affiliated Managers (AMG) could be promising asset management bet, Barron's says
SYNDICATE
Scorpio Bulkers (SALT) files to sell 83.35M shares for holders
TearLab (TEAR) files $25M mixed securities shelf