In Asia, Japan +1.3% to 20012. Hong Kong +1.8% to 22381. China +0.3%to 3456. India +0.1% to 26169.
In Europe, at midday, London +0.6%. Paris flat. Frankfurt flat.
Dow +0.95%. 10-yr +0.01% Euro +0.45% vs. dollar.
Crude +0.65% to $41.92. Gold -0.08% to $1,064.50.
Despite trying to avoid holiday crowds at bricks-and-mortar stores, U.S. shoppers came face-to-face with traffic jams and product sellouts on Cyber Monday, with some customers of Target (NYSE:TGT) forced to wait in a virtual line. Website outages and slow checkouts during the five-day shopping spree were also reported at Neiman Marcus (Pending:NMG), Wal-Mart (NYSE:WMT), L Brands’ (NYSE:LB) Victoria’s Secret, Foot Locker (NYSE:FL) and at payments processor PayPal (NASDAQ:PYPL). According to Adobe Systems, sales on Cyber Monday were expected to finish up 12% from a year earlier at $2.98B.
All U.K.-based banks have passed the country’s annual stress tests, which measure the British banking sector’s ability to handle global financial shocks. Although none of the lenders will be required to submit a revised capital plan, StanChart (OTCPK:SCBFF) and RBS (NYSE:RBS) only passed the exam after taking steps to improve their capital ratios during the testing process. Other banks included in the exercise: HSBC (NYSE:HSBC), Barclays (NYSE:BCS), Lloyds (NYSE:LYG), Santander (NYSE:SAN) and Nationwide.
Morgan Stanley is planning to cut up to a quarter of its fixed income jobs over the next two weeks, resulting in the loss of hundreds of jobs. The potential cuts reflect a slowdown in client activity, pressure from investors to lift returns and new capital rules that penalize big banks for holding vast inventories of debt securities. In October, Morgan Stanley (NYSE:MS) reported a 42% Y/Y drop in bond trading revenue in what CEO James Gorman called the bank’s worst quarter for fixed income since he took over in 2010.
Brazil has officially filed a 20B Brazilian reais ($5.2B) lawsuit against mining companies BHP Billiton (NYSE:BHP) and Vale (NYSE:VALE) to clean up the country’s “worst ever environmental catastrophe.” In a speech to the COP21 climate change summit in Paris, President Dilma Rousseff blamed the mine disaster on the “irresponsible action of a company” and said the firms would be “severely punished.” Besides additional pressure from a global commodity rout, BHP’s shares have fallen 20% since the dam burst on Nov. 5. BHP +1.5%; VALE +0.3% premarket.
Meanwhile, Anadarko Petroleum has been ordered to pay $159.5M in environmental penalties for its role as part-owner of the Macondo well that caused the 2010 Gulf of Mexico oil spill. The U.S. government had advocated a fine against Anadarko (NYSE:APC) of more than $1B. BP (NYSE:BP), which owned 65% of the well, agreed in July to pay $5.5B in penalties as a part of a $20B settlement with the U.S. and five Gulf states.
Looking to revive its once-booming smartphone business, Samsung Electronics (OTC:SSNLF) has appointed a new boss for its mobile division. The year-end reshuffle will see president J.K. Shin hand over the reins to Koh Dong Jin, who oversaw the development of Samsung’s mobile operating system, Tizen, and its mobile payment system, Samsung Pay. The company’s smartphone division has been facing tough competition from all sides (on both the high- and low-ends) and profits have been in decline for years.
AT&T has confirmed plans to hike the price of grandfathered unlimited plans in February. “Our unlimited data plan customers continue to receive an incredible value, especially those taking advantage of our 4G LTE network,” the company said in a statement. The deals will still be cheap in comparison – the rate is reportedly going to $35 from $30 – but with competing carriers bumping their prices for unlimited data, it opens the door to later changes. T+0.2% premarket.
Members of the association representing American Airlines’s (NASDAQ:AAL) reservations and gate agents have approved a new five-year labor deal that includes an immediate 30% average wage hike. The company has 14,500 passenger services employees in the U.S. covered by the new pact, which represents the first combined contract since American and U.S. Airways merged in late 2013.
Mattress Firm popped 7.3% in after-hours trading following its announcement to acquire privately-owned Sleepy’s for about $780M. The deal will give Mattress Firm (NASDAQ:MFRM) over 1,050 stores in 17 states and beef up its presence in the U.S. Northeast and mid-Atlantic. Annual synergies of at least $40M are seen by the third year after closing.