Today's Headlines

Bloomberg:

• Russia Recession Signs Mount as Central Bank Stems Ruble Losses. Russia’s economic pain worsened as a measure of services dropped to the lowest point since May 2009 and the central bank attempted to stem the ruble’s biggest slide in 16 years. The ruble touched a record low for a fifth day as data showed a gauge of business activity fell to a worse-than-forecast 44.5 in November. The currency rebounded amid speculation the Bank of Russia intervened after a 16 percent depreciation in six days, the most since the 1998 default. Wagers for interest-rate increases surged to a six-year high, while bonds of state-run VTB Bank sank on concern falling oil is straining lenders’ finances.

• Russian Services Industry Slumps to Lowest Since May 2009. (video) Russia’s services activity slumped to its lowest in five-and-a-half years as sanctions over Ukraine compounded weak demand, a falling ruble and political uncertainty to undermine private companies. The Russia Services Business Activity Index fell to 44.5 in November, its lowest since May 2009, from 47.4 in October, according to data released by HSBC Holdings Plc (HSBA) and Markit Economics today. The median estimate of eight economists surveyed by Bloomberg predicted an increase to 47.8. A reading below 50 signals contraction. 

• Euro-Area Economy Weakens as ECB Considers Stimulus. Euro-area services and manufacturing grew less than initially estimated last month, leaving the economy facing near-stagnation as the European Central Bank considers its options on further stimulus. A composite Purchasing Managers Index fell to 51.1 from 52.1 in October, London-based Markit Economics said today. The reading is the lowest in 16 months and points to economic growth of just 0.1 percent this quarter, according to Markit.

• There Are 300,000 Iraqi Barrels Signaling Oil Glut Will Deepen. Not only is OPEC refraining from cutting oil output to stem the five-month plunge in prices, it’s adding to the supply glut. Just five days after the Organization of Petroleum Exporting Countries decided to maintain production levels, Iraq, the group’s second-biggest member, inked an export deal with the Kurds that may add about 300,000 barrels a day to world supplies.

• Saudis Seen Widening Asia Oil Discounts as OPEC Takes On Shale. Saudi Arabia will probably deepen discounts for crude supplies to Asia after leading OPEC to maintain the group’s output target amid a global battle for market share, according to a Bloomberg survey of traders. The world’s biggest oil exporter will announce January officialselling prices to buyers in Asia this week, after lifting its Arab Light grade from the lowest level in almost six years a month earlier. The largest producer in the Organization of Petroleum Exporting Countries may offer bigger discounts, according to 12 of 13 respondents in the survey. One participant forecast price differentials to be unchanged. 

• Audi Plans Electric Crossover to Take on Tesla in U.S. Audi AG (NSU) plans to roll out an electric-powered crossover in 2017 to challenge Tesla Motors Inc. (TSLA) for wealthy, environmentally conscious consumers. The new model will mark Audi’s first mainstream all-electric vehicle and is part of a push to roll out greener cars. Next year, Audi will introduce a battery-powered variant of the $115,900 R8 sports car, which will follow the start of deliveries of the plug-in hybrid A3 E-Tron hatchback this year.

• Europe Stocks Climb Amid ECB Optimism as Commodity Stocks Rally. Gains in miners helped propel European stocks to within 0.1 percent of a six-year high amid bets that the European Central Bank will expand stimulus. The Stoxx Europe 600 Index increased 0.6 percent to 349.34 at the close of trading in London. That’s its highest level since June 10, and Rio Tinto Group pushed a measure of commodity companies to the biggest gain on the gauge.

• Wall Street Called Out by Regulators for Stalling on Swaps Rule. U.S. regulators are getting fed up with Wall Street’s attempts to stall a restriction on risky swaps trades. JPMorgan Chase & Co. (JPM), Citigroup Inc. (C) and other lenders have already won one delay of the measure that forces them to move derivatives out of units with federal backstops. Getting another reprieve is crucial for banks, because it would give them time to persuade a Republican-led Congress to kill the requirement.

• Hedge Funds Urged to Beat Benchmarks Before Charging Fees. Hedge fund investors are catching up with their private equity peers. Five years after clients of leveraged buyout firms released a set of best practices for the industry, hedge fund clients are following suit. The Teacher Retirement System of Texas and MetLife Inc. are among those that yesterday called on managers to produce “alpha,” or gains above market benchmarks before charging incentive fees in a range of proposals that address investing terms. Funds should also impose minimum return levels known as hurdle rates before levying the charges, said the Alignment of Interests Association, a group that represents some investors in the $2.8 trillion hedge fund industry.

• Obamacare's Future: Cancer Patients Paying More for Medication. People with Obamacare coverage who take medications for cancer, HIV, multiple sclerosis, and other chronic diseases might pay more out of pocket next year. A greater share of insurance plans sold in the healthcare.gov marketplace will require consumers to pay 30 percent or more of the cost of specialty drugs, according to a new analysis from consultant Avalere Health.

MarketWatch.com: 

• Economic activity expanding with signs of optimism: Beige Book.

• Tesla’s(TSLA) stock extends drop below key chart line. (graph)

CNBC:

• Vladimir Putin’s worst nightmare may be happening right now. Is Russia’s tanking economy making its leader vulnerable?

ZeroHedge: 

• Jobs: Shale States vs Non-Shale States. (graph)

• Crude Slides After Saudis Suggest Oil Stabilizes Around $60. (graph)

• Venezuela Default Risk Surges To Jan 2009 Highs.

• ISM Services Surges To 4th Highest On Record (As Services PMI Plummets). (graph)

• US Services PMI Tumbles For 5th Month As "Domestic Demand Weakens". (graph)

• Russian Central Bank Defends Record Low 55 Level, Bonds Tumble. (graph)

• ADP Employment Misses, Worst November In 4 Years. (graph)

• "Clearly A Negative Signal": BofA Shows Thanksgiving Spending Was Biggest Dud Since Lehman. (graph)

Business Insider: 

• STUDY: 86% Of Vegetarians Go Back To Eating Meat.

• How The Oil Crash Could Trigger The Next Subprime Crisis.

• A Chinese Company Made An Android Phone That Looks Exactly Like The iPhone 6 — And It's Super Cheap.