- Showtime for Apple: Big phones, smart watches and high expectations (Reuters)
- Bank of England Gov. Mark Carney Signals Spring Rate Rise (WSJ)
- Quebec Shows Scots Question Returns Even If Answer Is No (BBG)
- Hush money with a 9 year vesting period: Ex-SAC Fund Manager Martoma Sentenced to Nine Years in Prison (BBG)
- Dreams on hold, Brazil's 'new middle class' turns on Rousseff (Reuters)
- Fed to Hit Biggest U.S. Banks With Tougher Capital Surcharge (WSJ)
- Egypt court sentences Brotherhood leader, cleric to 20 years in jail (Reuters)
- Princeton Leads U.S. News List as Dartmouth Drops From Top 10 (BBG)
- Iraq's Shi'ite militia, Kurds use U.S. air strikes to further own agendas (Reuters)
- Jimmy Choo Said Near IPO to Value Shoemaker at $1 Billion (BBG)
- Ferguson to reform police, courts after shooting and protests (Reuters)
- U.N. Security Council plans to suppress foreign extremist fighters (Reuters)
Overnight Media Digest
WSJ
* The Federal Reserve plans to hit the biggest U.S. banks with a costly new requirement aimed at reducing the risk that some financial firms remain "too big to fail" nearly six years after the financial crisis erupted. (http://on.wsj.com/Zfj4OJ)
* European governments approved a new round of economic sanctions against Russia, but the measures won't enter into force for several days to see whether negotiations over the fate of war-torn eastern Ukraine show progress. Some nations, led by Finland, wanted to hold back on implementing the new sanctions while talks are under way, after last week's cease-fire between Kiev, Moscow and pro-Russia rebels. (http://on.wsj.com/1lOU8aO)
* The Secretary of the Department of Veterans Affairs broadly outlined his short-term plan for improving the organization and rehabilitating its image, but included few specific details. (http://on.wsj.com/1w8CXog)
* After three years of closely guarding his strategy for Apple Inc, Chief Executive Tim Cook will show his hand Tuesday, with an ambitious blitz of new products and services that aim to resolve questions about the company's ability to innovate. (http://on.wsj.com/1pJSq5Q)
* General Electric Co's deal to sell its appliance business to Electrolux AB is part of a shift driven by Jeff Immelt to focus the conglomerate on finance and industrial equipment. (http://on.wsj.com/YrP1mZ)
* Home Depot Inc confirmed on Monday that its payment systems were breached at its U.S. and Canadian stores in a security breach that may have stretched back to April. (http://on.wsj.com/1qBeftb)
* BGC Partners Inc is expected to make an unsolicited $675 million all-cash offer for rival GFI Group Inc according to people familiar with the matter. The takeover would bolster BGC, the second-largest broker by market capitalization, at a time of soft trading revenues and often-placid markets. (http://on.wsj.com/1lOHybM)
* The Federal Trade Commission on Monday sued AbbVie Inc and other drug companies over allegations they unlawfully sought to delay generic competition for AbbVie's blockbuster testosterone-replacement drug AndroGel. (http://on.wsj.com/YrPIwx)
* General Mills Inc agreed to buy Annie's Inc for $820 million, betting that a bigger presence in the natural-and-organic foods aisles will energize a business sapped by flagging consumption of breakfast cereals and other traditional fare. (http://on.wsj.com/1qBeQLq)
* The chief executive of Hertz Global Holdings Inc stepped down over the weekend amid disappointing results and accounting problems that had drawn outcries from activist investor Carl Icahn and other shareholders. (http://on.wsj.com/1nHlR9a)
* Brazil's state-run oil company Petroleo Brasileiro SA said it has requested access to the testimony of a jailed former Petrobras executive who has made allegations of a massive kickback scheme at the company. (http://on.wsj.com/1tGbZTY)
FT
Google Inc's third version of antitrust deal was rejected again by the European Union on Monday. The failure of this four-year probe deals a heavy blow to the commission's credibility in its highest profile antitrust case since Microsoft Corp.
Amazon.com Inc plans to launch its Fire mobile phone in the UK and Germany this month. The company also cut the price of Fire in the United States to 99 cents from $199.
European Union ambassadors approved new sanctions against Russia on Monday night that are expected to target the country's energy companies.
The United Kingdom's biggest apparel retailer Primark said it plans to open 10 stores in the U.S. by 2016. The company plans to focus from Baltimore to Boston stretch.
Ryanair Holdings Plc said on Monday it will buy at least 100 Boeing Co's next-generation short-haul aircraft for $11 billion. These aircraft have a capacity to seat up to 200 people. (
NYT
* European regulators on Monday pushed Google Inc to give up more in an antitrust settlement - demanding that the company make additional changes to its secret sauce, the search algorithm. (http://nyti.ms/1utAxNW)
* Mathew Martoma, the former portfolio manager for SAC Capital Advisors, was on Monday sentenced to nine years in prison for carrying out one of the biggest insider trading schemes on record. (http://nyti.ms/1lSdoV9)
* Home Depot Inc confirmed on Monday that hackers had broken into its in-store payments systems, in what could be the largest known breach of a retail company's computer network. The retailer said the exact number of customers affected was still not clear. But a person briefed on the investigation said the total number of credit card numbers stolen at Home Depot could top 60 million. (http://nyti.ms/1ugMjfF)
* Alibaba Group Holding Ltd's <IPO-BABA.N> co-founder and executive chairman Jack Ma on Monday spoke to a crowd of more than 800 potential investors as part of a global roadshow for the Chinese e-commerce giant, which is seeking to raise more than $21 billion in its initial public offering, a stock sale that could break size records. (http://nyti.ms/ZfiC31)
* Two of the biggest names in home appliances are joining forces after General Electric Co agreed on Monday to sell its century-old appliance division to Electrolux of Sweden for $3.3 billion in cash. The deal will combine Electrolux's Frigidaire, one of the best-known brands of refrigerators, with G.E.'s stable of products, including its Monogram line of luxury appliances. (http://nyti.ms/1p0WY7Q)
* Twitter Inc announced on Monday that it would begin publicly testing a "buy" button that can be embedded in posts to allow users to buy a product with a couple of clicks. (http://nyti.ms/1oYDbFZ)
* The U.S. Federal Reserve, mindful that some banks are still so big that their failure could weigh on the wider economy, said on Monday that it planned to increase the pressure on large financial firms to shrink. (http://nyti.ms/1pJRiz8)
Canada
THE GLOBE AND MAIL
** Encana Corp has sold the rest of its stake in PrairieSky Royalty Ltd, adding a hefty equity offering to an already hot deal market. Encana will raise C$2.6 billion ($2.37 billion) when the deal closes around Sept. 26, the natural gas company said on Monday. (http://bit.ly/1tGPxdo)
** The Canadian government will defend ordering special forces soldiers to Iraq on both moral and pragmatic grounds, arguing that Canadians are obliged to help stop a savage militant group whose self-proclaimed caliphate risks becoming a training ground for terrorists who could attack Canada and other Western countries. (http://bit.ly/1wardBR)
** A special prosecutor tasked with investigating a controversial campaign to woo ethnic voters to the British Columbia Liberal Party has approved Elections Act charges - though the allegations relate to a 2012 by-election and the full investigation of the ethnic outreach program won't be complete until next year. (http://bit.ly/1on52Aa)
NATIONAL POST
** The Canada Mortgage and Housing Corp is looking at a new formula to push some of its losses on to financial institutions, essentially forcing them to pay a deductible on mortgages insured with the Crown corporation before claims are paid, according to sources. (http://bit.ly/1s67MqN)
** A family of white South Africans - who sought refugee protection in Canada, claiming fear of rape and violence against whites by the black majority in their homeland - have won the Canadian Federal Court's support to continue their asylum claim. (http://bit.ly/1pKBKLp)
China
SHANGHAI SECURITIES NEWS
- The Shenzhen Stock Exchange will start on Tuesday mock trading of stock options that will involve six instruments and 19 brokerages in a pilot scheme.
CHINA SECURITIES JOURNAL
- China's new energy vehicle industry should brace itself for all-round competition by 2020, when government subsidies to electric vehicle makers will be phased out, said Wan Gang, head of China's Ministry of Science and Technology.
SHANGHAI DAILY
- Some Shanghai outlets removed products from Taiwan suspected of containing tainted oil on Sunday, after police on the island broke a recycled cooking oil ring selling used kitchen oil and grease from leather processing plants.
CHINA DAILY
- China's anti-graft watchdog said there were 28 cases of corrupt practices involving holiday gifts over the festive period. In a weekly report posted Monday for Sept. 1 to 7, the commission listed a total of 177 total cases of rules violations.
Britain
The Times
FLIGHTS FACE CHAOS AS RUSSIA RETALIATES AGAINST SANCTIONS
Russia threatened to close its airspace to European passenger airlines yesterday in response to tougher sanctions intended to punish it for its recent actions in Ukraine. (thetim.es/1rwNG4R)
EU REJECTS GOOGLE'S LATEST OFFER IN COMPETITION ROW
Google Inc's latest attempt to settle a European investigation into alleged anti-competitive behaviour has failed, reopening the possibility that the Internet search company could face huge fines. The company has been ordered to make more concessions in order to reach a deal with regulators. (thetim.es/1pJ64pJ)
The Guardian
DUCHESS OF CAMBRIDGE AND PRINCE WILLIAM EXPECTING SECOND CHILD
Prince William and the Duchess of Cambridge are expecting their second child, the royal family said on Monday. The announcement was made from Clarence House on Twitter. (bit.ly/WxvyiH)
PRIMARK TO LAUNCH 200 MLN STG BID TO CRACK U.S. CLOTHING MARKET
Fashion retailer Primark is to plough 200 million stg ($321.82 million) into a bid to crack the notoriously difficult U.S. market as it looks to succeed where some of Britain's biggest high street names including Tesco, Marks & Spencer and Sainsbury's have failed. (bit.ly/Zf6O0w)
The Telegraph
SCOTTISH INDEPENDENCE: THE QUEEN IS URGED TO INTERVENE
David Cameron is under growing pressure to ask the queen to speak out in support of the union as another opinion poll confirms a surge in support for Scottish independence. Senior MPs have suggested an intervention from Her Majesty could "make all the difference" as a TNS poll shows the Yes and No campaigns running neck and neck. (bit.ly/Zf77sr)
BRITAIN FACES STORM AS GIANT GLOBAL INVESTORS AWAKEN TO BREAK-UP DANGERS
Japan's biggest bank, Nomura Holdings Inc, has advised clients to slash financial exposure to the United Kingdom and brace for a possible collapse of the pound after polls showed the independence campaign running neck and neck, warning that the separation of England and Scotland after more than 300 years would be a "cataclysmic shock." (bit.ly/1qB2naG)
Sky News
EX-RBS EXEC TO RUN MORTGAGE GROUP KENSINGTON
A former head of one of Britain's emerging "challenger banks" is to take the helm of Kensington, the sub-prime mortgage lender, when it finalises a takeover by two Wall Street buyout firms. Ian Henderson, the former chief executive officer of Shawbrook, is to be installed in the same role at Kensington following its takeover by divisions of Blackstone and TPG. (bit.ly/1ufGhM1)
PM INVOKES WW2 IN SCOTTISH 'NO' PLEA
Prime Minister David Cameron said at a Downing Street reception for some of Britain's top executives that the United Kingdom won World War II through a united front and it was crucial that the country remained undivided. (bit.ly/1okFhka)
The Independent
AMAZON FIRE PHONE LAUNCHES IN THE UK: WOULD-BE IPHONE COMPETITOR BEATS APPLE TO THE PUNCH
Retailer Amazon.com Inc has launched its first ever smartphone in the United Kingdom, more than a month after the device was released in the United States. The Fire Phone will be available for free on a monthly 33 stg contract from O2 and will save customers 79 stg on the cost for a year of Amazon Prime. (ind.pn/1werdxU)
LUTON AIRPORT TO REOPEN AFTER 'SUSPICIOUS ITEM' FOUND IN SECURITY AREA DESTROYED BY POLICE IN CONTROLLED EXPLOSION
London Luton's airport is to reopen after passengers were evacuated from the premises and all incoming flights suspended when a suspicious item was found in the security search area. (ind.pn/1CL2zt7)
Fly On The Wall Pre-Market Buzz
ECONOMIC REPORTS
Domestic economic reports scheduled for today include:
NFIB small business optimism for August at 7:30--consensus 96.0
JOLTs job openings for July at 10:00--consensus 4.7M
ANALYST RESEARCH
Upgrades
ArcelorMittal (MT) upgraded to Outperform from Neutral at Credit Suisse
Barclays (BCS) upgraded to Overweight from Neutral at HSBC
CF Industries (CF) upgraded to Outperform from Sector Perform at RBC Capital
Columbia Property Trust (CXP) upgraded to Outperform at JMP Securities
D.R. Horton (DHI) upgraded to Overweight from Neutral at JPMorgan
Finish Line (FINL) upgraded to Buy from Hold at Deutsche Bank
Global Cash Access (GCA) upgraded to Buy from Hold at Stifel
Lennar (LEN) upgraded to Overweight from Neutral at JPMorgan
Lloyds Banking (LYG) upgraded to Overweight from Neutral at HSBC
Medivation (MDVN) upgraded to Outperform from Market Perform at Bernstein
Newmont Mining (NEM) upgraded to Outperform from Market Perform at Cowen
PulteGroup (PHM) upgraded to Neutral from Underweight at JPMorgan
Ralph Lauren (RL) upgraded to Strong Buy from Buy at ISI Group
Total (TOT) upgraded to Neutral from Underperform at BofA/Merrill
Virtusa (VRTU) upgraded to Overweight from Neutral at JPMorgan
Downgrades
Bank of Ireland (IRE) downgraded to Neutral from Buy at UBS
Dick's Sporting (DKS) downgraded to Market Perform from Outperform at Wells Fargo
M.D.C. Holdings (MDC) downgraded to Underweight from Neutral at JPMorgan
M/I Homes (MHO) downgraded to Neutral from Overweight at JPMorgan
MarkWest Energy (MWE) downgraded to Hold from Buy at Stifel
Meritage Homes (MTH) downgraded to Neutral from Overweight at JPMorgan
Mosaic (MOS) downgraded to Sector Perform from Outperform at RBC Capital
Pacific Coast Oil (ROYT) downgraded to Hold from Buy at Stifel
Parkway Properties (PKY) downgraded to Market Perform at JMP Securities
Standard Pacific (SPF) downgraded to Underweight from Neutral at JPMorgan
Initiations
AMC Entertainment (AMC) initiated with a Hold at Topeka
AMRI (AMRI) initiated with an Overweight at JPMorgan
American Airlines (AAL) initiated with an Outperform at Credit Suisse
Auris Medical (EARS) initiated with a Buy at Needham
CTI BioPharma (CTIC) initiated with an Overweight at Piper Jaffray
Catalent (CTLT) initiated with a Buy at BofA/Merrill
Catalent (CTLT) initiated with a Buy at Jefferies
Catalent (CTLT) initiated with a Hold at Deutsche Bank
Catalent (CTLT) initiated with an Overweight at JPMorgan
Catalent (CTLT) initiated with an Overweight at Piper Jaffray
Central Valley Community (CVCY) initiated with a Market Perform at Keefe Bruyette
Chimerix (CMRX) initiated with a Buy at Cantor
Delta Air Lines (DAL) initiated with an Outperform at Credit Suisse
Endocyte (ECYT) initiated with a Buy at Cantor
EnerNOC (ENOC) initiated with an Outperform at Pacific Crest
Good Times Restaurants (GTIM) initiated with a Buy at Roth Capital
JetBlue (JBLU) initiated with an Underperform at Credit Suisse
MEI Pharma (MEIP) initiated with a Buy at Cantor
Mavenir Systems (MVNR) initiated with an Outperform at Pacific Crest
Merrimack (MACK) initiated with a Buy at Cantor
Orion Engineered (OEC) initiated with an Equal Weight at Barclays
Southwest (LUV) initiated with a Neutral at Credit Suisse
Synchrony Financial (SYF) initiated with a Buy at Goldman
Synchrony Financial (SYF) initiated with a Hold at Deutsche Bank
Synchrony Financial (SYF) initiated with an Equal Weight at Barclays
Synchrony Financial (SYF) initiated with an Outperform at Keefe Bruyette
Synchrony Financial (SYF) initiated with an Overweight at JPMorgan
Synchrony Financial (SYF) initiated with an Overweight at Morgan Stanley
Tetraphase (TTPH) initiated with a Buy at Cantor
Threshold Pharmaceuticals (THLD) initiated with a Buy at Cantor
U.S. Geothermal (HTM) initiated with a Buy at Maxim
United Continental (UAL) initiated with an Outperform at Credit Suisse
COMPANY NEWS
Home Depot confirmed that its payment data systems were breached, which could potentially impact customers using payment cards at its U.S. and Canadian stores. While the company continues to determine the full scope, scale and impact of the breach, there is no evidence that debit PIN numbers were compromised
General Mills (GIS) will buy Annie's (BNNY) for $46 per share in cash. The deal has an aggregate value of approximately $820M
iPass (IPAS) said that it is exploring strategic alternatives
Baker Hughes (BHI) named current Avon Products (AVP) CFO Kimberly Ross as CFO; Avon named Robert Loughran as acting CFO
Level 3 (LVLT), tw telecom (TWTC) received U.S. DOJ approval of merger
EARNINGS
Companies that beat consensus earnings expectations last night and today include:
HD Supply (HDS), CM Finance (CMFN), Korn/Ferry (KFY), CHC Group (HELI), Casey's General Stores (CASY), NCI Building Systems (NCS)
Companies that missed consensus earnings expectations include:
Leidos (LDOS), Triangle Petroleum (TPLM), Pep Boys (PBY)
Companies that matched consensus earnings expectations include:
FuelCell (FCEL)
NEWSPAPERS/WEBSITES
Fed to require large US banks to have extra financial padding, WSJ reports
Apple (AAPL) looking to refocus on 9.7-inch iPad in 2H14, DigiTimes Research says
Boeing (BA) up against pressure to boost 737 production rate, Reuters reports
General Electric (GE) to focus on finance, industrial equipment, WSJ reports
Six Flags (SIX) wooden roller coaster catches fire, portion collapses, LA Times reports
Comverse (CNSI) to fire hundreds worldwide in next few days, Globes reports
Yahoo (YHOO) exploring ways to minimize taxes on sale of Alibaba (BABA) shares, Barron's says
SYNDICATE
Brookdale Senior Living (BKD) files to sell 8.75M shares
Physicians Realty Trust (DOC) offers 9M common shares
Pinnacle Foods (PF) files to sell 15M shares for holders
TriNet (TNET) files to sell 10.5M shares for General Atlantic LLC