Frontrunning: July 1

  • Pretty much as expected from George W. Bush: Edward Snowden ‘damaged’ security (Politico)

  • Gotta love the Keynesian-Monetarist religion: True 'Bullievers' Are Still Sweet on Japan (WSJ)

  • Canadian Takes Reins at Bank of England (WSJ)

  • Egypt streets quiet, political standoff goes on (Reuters)

  • Private Banks Leave Switzerland as End of Secrecy Hurts (BBG)

  • How Next Debt-Ceiling Fight Could Play Out (WSJ)

  • Easy Money Is Still Central (WSJ)

  • Lew Says China Needs Market Policies and Stop Spying (BBG) - China replies with the same

  • Ireland Preparing Plan to Tap Euro-Area Rescue Fund, Noonan Says (BBG)

  • Poll shows strong shift to Australian PM Rudd, new ministry named (Reuters)

  • The EU will regret terminating a banking union (FT)

  • Greece, lenders resume talks on 8.1 billion euro bailout tranche (Reuters)

  • Norway’s opposition mulls oil fund split (FT)

  • For Investors, Emerging Rethink (WSJ)

  • Wary of the peso, Argentines try a new form of payment (FT)

  • Obama unveils $7bn Africa power initiative (FT)

Overnight Media Digest

WSJ

* Edward Snowden's decision to go to Russia is looking riskier than it first appeared, and may have left him in a worse situation than if he had stayed in Hong Kong.

* Even as gay-rights advocates in California spent the weekend celebrating the U.S. Supreme Court decision allowing the resumption of same-sex weddings in the state, activists and government experts across the political spectrum were raising concerns the ruling weakens the power of voters to make law through the state's ballot-initiative process.

* Infighting among the Karzai clan indicates the depth of the challenges Afghanistan President Karzai is facing as a transition of power looms next spring, when his final term expires.

* New York's finance regulator is probing global reinsurance firms, alleging some of them may not be compliant with pending U.S. laws against doing business with Iran.

* Advisers working on Dell Inc's $24.4 billion buyout are trying to solve a problem: how to use the computer maker's foreign cash without paying a $2.6 billion U.S. tax bill.

* Lagardere Sca's Hachette Book Group has agreed to acquire Hyperion, a book unit of Walt Disney Co's ABC Television Group, for an undisclosed price, bolstering Hachette Book's backlist of titles, particularly on the nonfiction front.

* Summer is when spectacle rules the big screen. But smaller-budget movies have been beating big-budget ones, and another is poised to do so this week as "Despicable Me 2" takes on "The Lone Ranger."

* Nokia Oyj agreed to pay 1.7 billion euros ($2.21 billion) to buy Siemens out of its 50 percent stake in a telecom-equipment joint venture between the two companies.

* The Obama administration's effort to draft athletes and sports leagues to promote health insurance to the uninsured is off to a rocky start after Republican Senate leaders fired off letters suggesting the leagues avoid promoting the Affordable Care Act.

* After losing ownership of the Los Angeles Dodgers, Frank McCourt faces a lawsuit that asks, how responsible is a stadium operator for keeping fans safe?

* A Honeywell International Inc plant in Illinois has increased its efficiency while cutting its workforce in half-illustrating the shop-floor improvements that economists and academics have dubbed a U.S. manufacturing renaissance.

FT

Sovereign wealth fund Kuwait Investment Authority is looking to invest as much as $5 billion in infrastructure mainly in the United Kingdom over the next three to five years.

Apple Inc did not pay any corporation tax in the United Kingdom last year, according to its latest filings.

Energy secretary Ed Davey has dismissed talk of Britain potentially facing blackouts, saying the government had a well thought-through plan to keep the lights on.

Barclays has come under criticism from a former member of the Financial Policy Committee after Chief Executive Anthony Jenkins warned the bank may have to cut lending to meet stricter capital requirements imposed by regulators.

Onyx Pharmaceuticals has rejected a $10 billion bid from rival Amgen but has given the nod to its bankers to solicit other offers.

NYT

Sovereign wealth fund Kuwait Investment Authority is looking to invest as much as $5 billion in infrastructure mainly in the United Kingdom over the next three to five years.

Apple Inc did not pay any corporation tax in the United Kingdom last year, according to its latest filings.

Energy secretary Ed Davey has dismissed talk of Britain potentially facing blackouts, saying the government had a well thought-through plan to keep the lights on.

Barclays has come under criticism from a former member of the Financial Policy Committee after Chief Executive Anthony Jenkins warned the bank may have to cut lending to meet stricter capital requirements imposed by regulators.

Onyx Pharmaceuticals has rejected a $10 billion bid from rival Amgen but ha* The old-line carmakers are suddenly hungry for information technology specialists who can create apps for the next generation of connected vehicles.

* John Malone is weighing a deal for Time Warner Cable , using Charter Communications Inc as the merger partner, people briefed on the matter said.

* A live stream on YouTube provided by the nonprofit news organization The Texas Tribune went viral and gave the Texas state senator Wendy Davis a national platform. Online videos have been going viral for almost a decade, but what came out of the filibuster in Texas was something distinct: viral live video.

* Borrowing heavily from the cable playbook, CBS Corp has set out to reverse the trend toward ever-dwindling network ratings - and intense attention directed toward cable dramas - in the summer. The opening ratings for its new series, "Under the Dome", last Monday qualified as spectacular: more than 13.5 million viewers for the premiere, the biggest audience for a summer drama in more than 20 years.

* Stillman & Friedman, a New York firm that has represented some big clients, is combining with Ballard Spahr, an old-line Philadelphia firm looking to enter the New York market and expand its criminal defense practice. () the nod to its bankers to solicit other offers.

Canada

THE GLOBE AND MAIL

* Ontario's premier was embraced as the VIP of what's billed as Canada's largest gay pride parade, alongside a host of other political figures and colourful characters celebrating equality.

Reports in the business section:

* Canada is headed for what could be a seventeenth-straight monthly trade deficit - the result of weak commodity prices and the sluggish global economy.

NATIONAL POST

* Millions of federal dollars earmarked for multiculturalism programming are going unspent, resulting in what the government calls responsible cuts to program budgets but what critics consider a sign of a worrisome shift.

* Support slipped for the Federal Liberals and surged for the Conservatives this month as new poll data shows Justin Trudeau's party would win a minority government if an election were held today.

FINANCIAL POST

* On the north side of Douglas Channel, a quick boat ride from the Haisla Nation's town site, an old log dumpsite covered by forest is awaiting transformation as the first liquefied natural gas (LNG) export site on Canada's West Coast.

* Royal Bank of Canada is once again boosting some of its home mortgage rates effective Tuesday. RBC increased some of its mortgage rates earlier this month following a plunge in bond prices in May.

China

CHINA SECURITIES JOURNAL

- China Vanke President Yu Liang said China's monetary tightening will favour the healthy development of the real estate industry, but the next two to three years will bring pain to companies as the industry consolidates.

SHANGHAI SECURITIES NEWS

- China's economy is expected to enter a phase of change in two to three years, when growth will moderate, said Liu Shijing, deputy director with the Development Research Centre of the State Council.

SHANGHAI DAILY

- The Law of Protection of Rights and Interests of the Aged, which makes it illegal for children to neglect the "spiritual needs" of parents over 60, has come into effect in China, amid concern from legal professionals that the provisions are too vague.

CHINA DAILY

- China's land market hit a five-year high in May as transfer fees in 10 major cities touched $11 billion, an increase of nearly 400 percent year on year, according to industry statistics released by E-House China Real Estate Research and Development Institute.

Fly On The Wall 7:00 AM Market Snapshot

ANALYST RESEARCH

Upgrades

CSR (CSRE) upgraded to Buy from Hold at Jefferies
Corporate Office Properties (OFC) upgraded to Outperform at Wells Fargo
Dana Holding (DAN) upgraded to Outperform from Sector Perform at RBC Capital
Huaneng Power (HNP) upgraded to Buy from Sell at Citigroup
Intercontinental Hotels (IHG) upgraded to Buy from Hold at Deutsche Bank
Nokia (NOK) upgraded to Overweight from Underweight at JPMorgan
Pandora (P) upgraded to Overweight from Equal Weight at Morgan Stanley
Regeneron (REGN) upgraded to Overweight from Neutral at Piper Jaffray
Rexnord (RXN) upgraded to Outperform from Market Perform at BMO Capital
Solera (SLH) upgraded to Outperform from Market Perform at William Blair
WhiteWave Foods (WWAV) upgraded to Overweight from Equal Weight at Morgan Stanley
YRC Worldwide (YRCW) upgraded to Buy from Hold at BB&T

Downgrades

3M Company (MMM) downgraded to Equal Weight from Overweight at Morgan Stanley
Atlas Air (AAWW) downgraded to Market Perform from Outperform at FBR Capital
Avid Technology (AVID) downgraded to Neutral from Overweight at JPMorgan
Banco Bilbao (BBVA) downgraded to Underweight from Neutral at JPMorgan
BlackBerry (BBRY) downgraded to Sell from Hold at Deutsche Bank
HollyFrontier (HFC) downgraded to Underweight from Neutral at JPMorgan
Marathon Petroleum (MPC) downgraded to Underweight from Neutral at JPMorgan
Mechel (MTL) downgraded to Sell from Hold at Deutsche Bank
Valero Energy (VLO) downgraded to Underweight from Neutral at JPMorgan

Initiations

21st Century Fox (FOXA) initiated with a Buy at Deutsche Bank
Best Buy (BBY) initiated with an Outperform at Credit Suisse
News Corp. (NWSA) initiated with an Outperform at Wells Fargo

HOT STOCKS

Alnylam (ALNY) reports positive Phase II data for ALN-TTR02
Nokia (NOK) to acquire Siemens' stake in Nokia (NOK) Siemens Networks for EUR 1.7B
Onyx (ONXX) rejects $120 per share acquisition proposal from Amgen, explores options
QR Energy (QRE) to acquire $110M of oil properties

EARNINGS

Maximus (MMS) raises FY13 revenue to $1.26B-$1.31B from $1.25B-$1.30B

NEWSPAPERS/WEBSITES


  • Barnes & Noble (BKS) still could be worth over $30, Barron's says

  • Zions Bancorp (ZION) could rise from higher interest rates, Barron's reports

  • Cheesecake Factory (CAKE) benefits from improving Western economy, Barron's says

  • Dole (DOLE) investors should hold on to their shares, Barron's says

  • Kansas City Southern (KSU) could rise at least 20% this year, Barron's says

  • E-Trade (ETFC) ad agency Grey resigns, NY Post reports

  • Herbalife (HLF) CEO fails to ease Hispanic Caucus concerns, NY Post reports

  • Micron (MU)-Elpida merger set to be completed in August, DigiTimes says

  • NY finance regulator alleges reinsurers have Iran ties, WSJ reports

SYNDICATE

Anacor (ANAC) files to sell 809K shares of common stock for holders
Arris (ARRS) files to sell 21.27M shares of common stock for holders
Fleetmatics (FLTX) files to sell 8M ordinary shares for holders
Golden Minerals (AUMN) files to sell 2.05M shares of common stock for holders
Idera Pharmaceuticals (IDRA) files to sell 2M shares of common stock for holders
Kinder Morgan Energy (KMP) files to sell $2.2B of common units
Pacific Ethanol (PEIX) files to sell 2.2M shares of common stock for holders

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