Bloomberg:
- NATO Rejects Russia Demand for Unaligned Ukraine. Russia’s demand that Ukraine guarantee it won’t join NATO violates the country’s independence, the head of the alliance said, as the two sides traded accusations over who is fueling the conflict in the ex-Soviet republic. U.S. Vice President Joe Biden is scheduled to arrive in Kiev for talks today with Ukrainian President Petro Poroshenko after North Atlantic Treaty Organization Secretary General Jens Stoltenberg urged Vladimir Putin’s government to pull back its troops from inside eastern Ukraine and from the border area. Meanwhile, Russia’s State Security Council said the U.S. was instigating the fighting. “We call on Russia to stop fueling the conflict,” Stoltenberg said in Tallinn, Estonia. He also urged Russia to “use all its influence” to make sure pro-Russian separatists in Ukraine are respecting a Sept. 5 cease-fire that has been broken almost daily.
- Ukraine Clash Shows Azeris Who’s Boss as Russia Ties Bind. Peeling away former Soviet republics from their U.S. and European allies is getting easier for Russia after its show of force in Ukraine.
- Hedge Hunters Double Default-Swaps as Views Split: China Credit. Global investors have doubled holdings of contracts insuring China’s sovereign debt as its companies raise funds abroad and views diverge on the economy. The net notional amount of credit-default swaps protecting against non-payment by the government reached a record $15.7 billion on Nov. 7, up from $8.1 billion a year earlier, Depository Trust & Clearing Corp. data show.
- RBA’s Heath Says Mining Investment Decline a ‘Significant’ Drag. The decline in mining investment will be a “significant drag” on Australia’s economic growth, even as exports of coal and iron ore provide a boost, according to the central bank’s head of economic analysis. It’s uncertain how far and fast investment will fall or how much the mines’ operations will add to growth, the Reserve Bank of Australia’s Alexandra Heath said today in the text of a speech in Sydney. While China will probably find it more difficult to maintain its current pace of economic growth, the world’s second-largest economy should remain a large market for Australian resource exports for some time, she said.
- Yen Climbs on Aso Comments as Oil Gains; Asia Stocks Drop. Japan’s yen rose for the first time in seven days as Finance Minister Taro Aso said its decline has been too fast. Most Asian stocks fell, with the regional index headed to its biggest weekly retreat since mid-October, while crude oil climbed for a second day. The yen added 0.4 percent to 117.77 per dollar by 12:16 p.m. in Tokyo, paring its biggest five-week loss since 1995. About five stocks fell for every three that rose on the MSCI Asia Pacific Index (MXAP) as it headed for a 1.8 percent drop this week.
- Iron Ore Heads for Fifth Weekly Loss on Glut as Miners Retreat. Iron ore is headed for a fifth straight weekly drop with prices trading near the lowest since 2009 on concern that slowing growth in China will hurt demand just as rising low-cost supplies spur a global surplus. Ore with 62 percent content delivered to Qingdao lost 6 percent this week, dropping to $70.20 on Nov. 19, the lowest level since June 2009, data from Metal Bulletin Ltd. showed. The price gained 1.1 percent to $70.97 a dry ton yesterday, rising for the first time since Nov. 12.
- The Nihilist in the White House. This administration doesn’t build, it divides and tears down. Vindication is assumed. There is an odd, magical-thinking element in the psychology of recent White Houses. It is now common for those within them to assume that history will declare their greatness down the road. They proceed as if this is automatic, guaranteed: They will leave someday, history will ponder their accomplishments and announce their genius.
- I, Barack. The immigration order is an abuse of power that fails as a policy reform. President Obama’s decision to legalize millions of undocumented immigrants by his own decree is a sorry day for America’s republic. We say that even though we agree with the cause of immigration reform. But process matters to self-government—sometimes it is the only barrier to tyranny—and Mr. Obama’s policy by executive order is tearing at the fabric of national consent.
- The Next Prez and the Obama Way. Prosecutorial discretion? OK, how about not enforcing the 73,954 pages of tax code?
- Obama heads to Vegas to rally support for immigration overhaul. Determined to go it alone, President Obama will head to Nevada on Friday to sign an executive order granting “deferred action” to two illegal immigrant groups- parents of United States citizens or legal permanent residents who have been in the country for five years, and young people who who were brought into the country illegally as of 2010.
- China’s media upset over corporate welfare.
- China ‘triple bubble’ points to long slide for commodities. The “commodity super cycle” is dead. Now, it’s time to get used to the “commodity super down cycle, and China is the biggest reason why, warn strategists at Credit Suisse in a Thursday note.
- 3 Things Worth Thinking About. (graph)
NY Times:
- In a Video, ISIS Fighters Call for Attacks in France. A new propaganda video from the militant group Islamic State shows three French fighters calling on Muslims in France to carry out attacks there or join the group’s fight in Iraq and Syria, according to a jihadist monitoring organization.
- Wynn Resorts(WYNN) denies probe for money-laundering violation. Casino operator Wynn Resorts Ltd said it was not aware of any investigation after the Wall Street Journal reported that the company is being probed by U.S. federal authorities for possible violation of money-laundering laws.
- Gap(GPS) cuts profit forecast as demand slows for Old Navy brand. Apparel retailer Gap Inc cut its full-year earnings forecast as sales at the Gap brand continued to fall and demand for the cheaper Old Navy clothing slowed. The company's shares fell 4.4 percent in extended trading. Comparable-store sales fell 5 percent at Gap in the third quarter ended Nov. 1 while sales were flat at Banana Republic.
- Chipmaker Marvell's(MRVL) Q4 revenue forecast disappoints. Marvell Technology Group Ltd forecast lower-than-expected revenue for the current quarter as weak demand for its chips used in third-generation mobile communication offset a rise in sales of its more profitable 4G LTE chips. Shares of the company fell as much as 2.5 percent to $12.97 in after-market trading.
- U.S. Fed launches review of supervision of major banks. The U.S. Federal Reserve has launched a review of how it oversees major banks, calling on its inspector general to help with the probe after a series of critical reports.
- Oil industry risks trillions of 'stranded assets' on US-China climate deal. Petrobas' hopes of becoming the world's first trillion dollar company have deflated brutally.
- China Growth Below 7% Acceptable for Restructuring. GDP growth below 7% is acceptable as long as China is able to improve its economic structure, according to a speech by Li Yining, an economist with Peking University. Economic structure is more important than size, Li says. China has paid a price for high growth in the past including environmental pollution, resources depletion and overcapacity, Li said.
Jefferies:
- Rated (MSFT) Underperform, target $40.
- Rated (SPLK) Buy, target $89.
- Rated (INTU) Buy, target $110.
- Rated (CRM) Underperform, target $48.
- Rated (CA) Buy, target $40.
- Rated (SYMC) Underperform, target $20.
- Rated (PAYC) Buy, target $32.
- Rated (ADBE) Buy, target $83.
- Rated (CHKP) Buy, target $88.
- Asian equity indices are -.50% to +.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 106.50 +1.0 basis point.
- Asia Pacific Sovereign CDS Index 65.75 +1.25 basis points.
- FTSE-100 futures -.14%.
- S&P 500 futures unch.
- NASDAQ 100 futures unch.
Earnings of Note
Company/Estimate
- (ANN)/.69
- (FL)/.79
- (HIBB)/.61
11:00 am EST
- The Kansas City Fed Manufacturing Activity Index for November is estimated to rise to 6.0 versus 4.0 in October..
- None of note
- The Fed's Tarullo speaking and the (TYC) investor day could also impact trading today.
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