Tom Glocer, the head of Thomson Reuters (NYSE: TRI), resigns and will be replaced by the COO. (Reuters)

The intellectual property battle between Apple (NASDAQ: AAPL) and Samsung continues in the California courts. (Reuters)

AMR (NYSE: AMR) workers will have to fight to maintain pensions. (Reuters)

The European Central Bank says it may take action on the EU crisis. (Reuters)

Google (NASDAQ: GOOG) may launch an online shopping business to compete with Amazon.com (NASDAQ: AMZN). (WSJ)

The Senate blocks a bill to extent tax cuts into next year. (WSJ)

The ECB says it would increase its role in the debt crisis if nations in the region set and follow strict budgets. (WSJ)

Many credit rating agency employees have left their firms to work as analysts at banks — a sector they once rated. (WSJ)

Two Fed officials say they do not expect the central bank to launch a QE3 program. (WSJ)

Sales of SUVs rise sharply as gas prices drop. (WSJ)

Google’s Chrome becomes the second most used browser after Microsoft’s (NASDAQ: MSFT) Internet Explorer. (WSJ)

General Motors (NYSE: GM) says it will buy back Chevy Volts. (WSJ)

Sprint-Nextel (NYSE: S) will pay Clearwire (NASDAQ: CLWR) as much as $1.6 billion over four years for access to the Clearwire network. (WSJ)

Purchasing managers indexes in most nations outside the U.S. declined last month. (WSJ)

Lorillard (NYSE: LO) will continue the cigarette business and not diversify into other forms of tobacco products. (WSJ)

Retailers that tend to offer discounts did well in November sales numbers. (WSJ)

Some AMR creditors will be forced to take big write-downs. (WSJ)

AT&T (NYSE: T) criticizes the FCC for comments about its plan to buy T-Mobile. (WSJ)

BMW and Toyota (NYSE: TM) will work on battery technology together. (WSJ)

Nissan hopes to become the number two Japanese car company in the U.S. (WSJ)

Barnes & Noble (NYSE: BKS) reports weak numbers as it battles in the e-commerce business. (WSJ)

Talbots (NYSE: TLB) loses money in the most recent quarter. (WSJ)

Massachusetts sues large banks, including Bank of America (NYSE: BAC), over mortgage fraud. (WSJ)

Credit insurance rates show the costs to insure Morgan Stanley (NYSE: MS) debt is higher than for EU-based banks. (WSJ)

Germans fear that some solutions to the sovereign debt crisis will cause inflation in the nation. (NYT)

The John J. Heldrich Center for Workforce Development at Rutgers releases a study that shows only 7% of Americans who lost jobs in the credit crisis have come back into the labor force with comparable or better work. (NYT)

Ford (NYSE: F) tries to revive is flagging luxury Lincoln brand. (NYT)

Merkel says Germany wants new EU rules that will bind nations to honor budgets. (FT)

Banks find it increasingly difficult to make money. (FT)

Banks will compete with sovereigns for $2 trillion needed to refinance maturing debt next year. (Bloomberg)

Douglas A. McIntyre

AMR Corp. (NYSE: AMR) has received a rating of ‘A-’ on its series 2011-2 class A pass-through certificates that are expected to mature on October 15, 2021. The company plans to issue $726 million of equipment notes secured by 43 aircraft to refinance airplanes already owned by AMR.

According to S&P, the pass-through certificates are protected under US bankruptcy law and liquidity facilities through Morgan Stanley Bank. The liquidity facilities are intended to pay up to three semi-annual interest payments and re-marketed by certificate holders following any default by AMR. The liquidity facilities also maintain continuity of interest payments when/if AMR enters negotiations with certificate holders in a bankruptcy proceeding.

The certificates were registered under a shelf registration in September and will be purchased by a newly formed trust as each aircraft is purchased. The notes carry an interest rate of 8.625%.

S&P referred to yesterday’s reports of AMR’s possible bankruptcy and said that the agency believes that AMR’s current liquidity combined with the sale of the certificates was “still adequate.” However, if the company’s cash and short term investments fall below $3 billion, S&P said it “could lower our ratings.”

General Motors Co. (NYSE: GM) received an upgraded issuer default rating from ‘BB-’ to ‘BB’ at Fitch Ratings. The company’s rating outlook was also upgraded from ‘Stable’ to ‘Positive’. The ratings also apply to GM Holdings LLC, and GM Financial Co., Inc., both subsidiaries of GM. Fitch noted, among other things contributing to the upgrade, that the new contract with the United Auto Workers “appears to provide the company with sufficient financial and operational flexibility to allow a continuation of the positive progress it has made since emerging from bankruptcy in 2009.”

Level 3 Communications Inc. (NASDAQ: LVLT) received an upgrade to its corporate family and probability of default ratings from ‘Caa1′ to ‘B3′ from Moody’s. The agency said that the now-closed transaction with Global Crossing Ltd. should allow the company to become “modestly cash flow positive on a sustained basis with two years.” The new rating was also applied to a new $650 million senior secured term loan at Level 3′s financing subsidiary and the company’s assumption of senior unsecured debt originally issued to another Level 3 subsidiary.

ConAgra Foods Inc. (NYSE: CAG) received a preliminary ‘BBB’/'BBB-’ rating from S&P on a shelf registration of senior unsecured/subordinated debt that does not include a total offering amount or a number of debt securities. The company’s corporate rating is ‘BBB’ with a stable outlook.

Thomson Reuters Inc. (NYSE: TRI) received a ‘A-’ rating from S&P on $350 million in senior unsecured notes due 2021. The company plans to use the proceeds to repay borrowing from it commercial paper program. Thomson Reuters carries a corporate credit rating ‘A-’ with a ‘Stable’ outlook.

Paul Ausick

Morgan Stanley (NYSE: MS) received upgrades on three of its commercial mortgage backed securities (CMBS) classes from Moody’s. Four other classes of CMBS included in the bank’s series 1999-WF1 package were affirmed at previously assigned ratings. The upgrades followed from Moody’s analysis that the cumulative expected loss has fallen from 8.6% to 4.5% of the current balance. The aggregate balance of the series is now $57.3 million from an original balance of $968.5 million at the time of securitization.

Wells Fargo & Co. (NYSE: WFC) subsidiary Wachovia Bank received downgrades on eight classes of CMBS in series 2006-C24 by Moody’s. Another 14 classes in the series were affirmed or confirmed and Moody’s also affirmed 16 classes in Wachovia’s CMBS series 2003-C7.

JPMorgan Chase & Co. (NYSE: JPM) received downgrades on six classes of CMBS series 2002-C2 and affirmations on 11 classes in the same series from Moody’s. The downgrades were due to higher expected losses of 6%, compared with 3.6% expected losses at the agency’s last review in December 2010.

Citigroup Inc. (NYSE: C) received a downgrade of 11 classes of its series 2006-C4 CMBS at Fitch Ratings. Two of the three largest loss contributors are in foreclosure. Six other classes in the series were affirmed. The total downgraded amount is more than $400 million on an aggregate original balance of $2.26 billion.

These actions could just represent a flurry of activity on some poorly performing loans, or they could be a signal that more write-downs on commercial lending could be in store.

Ford Motor Co. (NYSE: F) has had its ‘BB-’ corporate credit watch put on CreditWatch with positive implications by Standard & Poor’s. The possible two-notch upgrade to ‘BB+’ depends on the company’s successful negotiations for a new four-year union contract. The company has also said that it could add up to 7,000 new jobs in the US over the next two years.

General Motors Co. (NYSE: GM) received a two-notch upgrade to its corporate credit rating, from ‘BB-’ to ‘BB+’, at S&P. The rating outlook was also raised from ‘stable’ to ‘positive’. The upgrade follows yesterday’s United Auto Workers’ ratification a new four-year labor contract with GM.

Liberty Interactive Corp. (NASDAQ: LINTA) received a an upgrade to its corporate credit rating from ‘BB-’ to ‘BB’ at S&P. The agency also removed company from CreditWatch Negative and affirmed its ‘stable’ outlook. The change stems from the spin-off of Liberty’s QVC, Inc.

Thomson Reuters Inc (NYSE: TRI) received a rating of ‘A-’ on approximately $2.9 billion in 10-year unsecured notes maturing in 2013, 2014, and 2015. Thomson has also announced an offering of $350 million in 3.95% notes due in 2021. The company will use the proceeds to repay borrowing on its commercial paper that had been used to finance a repayment of CDN$600 million on 5.25% notes that matured in July 2011. Thomson also appointed a new COO yesterday, who could be in line to replace the CEO if Thomson doesn’t improve its performance in the financial services sector.

Paul Ausick

Though this may make good political theater, it’s lousy economics.

Unfortunately, the jobs that have been sent overseas over the past two decades are not coming back.  Punishing companies who — because they are private enterprises — pursue the lowest-cost workers is pointless.  They have not done anything wrong, so why are they being punished? So many American companies shift so many jobs overseas that it’s hard to know where to start meting out job.   What about slapping Thomson Reuters (NYSE:TRI) for outsourcing journalism jobs to India? Many tech companies including Microsoft Corp.  (NASDAQ: MSFT),  IBM (NYSE:IBM) and Hewlett-Packard Co.  (NYSE: HPQ) do research overseas.  Those people are among the smartest in the world .  Should these companies be punished for not finding enough American geniuses?   No, that would be insane.  Then again, so is wishing away the global economy but that’s exactly what Democrats tried to do.

“The proposed bill would have raised taxes on companies that move manufacturing jobs out of the country and provide a tax incentive for companies that decide to bring them back,” according to CBS.com.

There are many ways that American companies profit from moving their operations overseas including deducting the cost of closing American plants.  Business groups likely would file suit against the bill the moment it became law, alleging that it was discriminatory and they would be right.  How can the IRS allow one company to make the deduction and another one moving operations overseas not to?

The U.S. is not an island unto itself, not even close.  We have alliances with frenemies — an odious but nonetheless accurate word — that guide our economic existence known as free trade agreements.  Critics call them “job killers”, and they are right.  Thanks the North American Free Trade Agreement, industries such as apparel manufacturing have largely disappeared from American shores.   Factories around the world from China to Mexico to Bangladesh churn out tons of cheap goods for Americans to consume.  We are champions at it.

Free trade is a debate of the 1990s that was supposed to have been settled then.  It’s not surprising that protectionism is creeping into our political discourse in an election year. The way to get the economy growing again is to look ahead not back

–Jonathan Berr

New data compiled by the healthcare analytics group at Thomson Reuters (NYSE:TRI) found that the “U.S. healthcare system wastes between $505 billion and $850 billion every year.”

The primary culprits in causing the waste are overuse of antibiotics and lab tests which adds $200 billion to $300 billion to the cost of American healthcare per annum and fraud, kickbacks, and scams which add another $200 billion a year. Medical mistakes and preventable medical conditions were also listed as major causes for tens of billions of dollars in waste.

Most of these problems can be prevented by legislation, closer monitoring by the Health and Human Services Department, harsh prosecution of fraud, and incentives for patients who lead more healthy lifestyles. Almost every one of these things is financially preferrable to a healthcare package which could cost nearly $1 trillion over the next decade.

The government would have to set up an agency like the SEC to monitor overused medical practices and fraud. The new agency would have to have broad investigative and subpoena powers and the ability to bring civil actions against people, companies, and doctors who violate rules and regulations for the disbursement and payment for medical services. The agency would also refer criminal violations to the Justice Department.

The other part of any effective effort to bring down costs is to give financial incentives for patients to change behavior to curtail the rise in preventable diseases. This would probably involve dropping insurance premiums for those who were willing to sustain reasonable diets and exercise and avoid smoking and heavy drinking.

Better regulation of healthcare might be a bureaucratic nightmare, but it is likely a better alternative to a healthcare spending program that could break the back of the American economy.

The entire report: TR_-WASTE_WHITE_PAPER_LW_10_25_09_v4[1] 

Douglas A. McIntyre

Kinross Gold Corporation (NYSE:KGC)
EnCana Corporation  (NYSE:ECA)
TransCanada Corporation  (NYSE:TRP)
Canadian National Railway Company  (NYSE:CNI)
BCE Inc.   (NYSE:BCI)
Royal Bank of Canada   (NYSE:RY)
Thomson Reuters Corporation  (NYSE:TRI)
Husky Energy Inc.  
Shoppers Drug Mart Corporation  
Potash Corporation of Saskatchewan Inc.   (NYSE:POT)
Rogers Communications Inc.  (NYSE:RCI)

US companies aren’t the only ones with pay issues.

Douglas A. McIntyre

Reuters:   Bruce Wasserstein, M&A giant and head of Lazard (NYSE:LAZ), died.

Reuters:   Congress will probe compensation at AIG (NYSE:AIG).

Reuters:   US foreclosures fell for a second month but stayed high.

Reuters:   The Fed discussed rasing its asset purchases at the last FOMC.

Reuters:   Roche’s results were helped by Tamiflu sales.

Reuters:   JPMorga (NYSE:JPM) had a $3.6 billion profit setting a high bar for rivals.

Reuters:   RIM (NASDAQ:RIMM) launched a touchscreen version of the Blackberry.

WSJ:   “Calpers said a former board member had reaped $50 million in fees for arranging investments that could saddle state taxpayers with hundreds of millions of dollars in losses.”

WSJ:   AT&T (NYSE:T) slammed Google (NASDAQ:GOOG) over call blocking by its Voice application

WSJ:   Sumner Redstone will cut his stakes in CBS (NYSE:CBS) and Viacom (NYSE:VIA).

WSJ:   Overseas Chinese Banking Corp bought certain assets of ING.

WSJ:   BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RTP) dropped a plan to co-market some of their products.

WSJ:   Sour mortgages could hurt GE (NYSE:GE) earnings.

WSJ:   Microsoft (NASDAQ:MSFT) is opening its first retail stores.

WSJ:   Wal-Mart (NYSE:WMT) is expanding its wireless programs.

WSJ:   Google’s (NASDAQ:GOOG) results are likely to show that the recession is passing.

WSJ:   China’s foreign currency reserves hit $2.273 billion.

WSJ:   Obama is proposing at $250 payment to 57 million seniors, veterans and people with disabilities next year.

WSJ:   Congress is concerned about the usefulness of first time homebuyer credits.

WSJ:   Options traders are favoring IBM’s (NYSE:IBM) earnings prospects.

WSJ:   China faces a big retrenchment of its factories as exports remain slow.

WSJ:   GM predicted big growth in China.

WSJ:   Oracle (NASDAQ:ORCL) is targeting IBM with some of its new products.

WSJ:   Skype’s founders are trying to get an injunction against a sale of the company by eBay (NASDAQ:EBAY)

WSJ:   The Wall Street Journal (NYSE:NWS) is likely to pass USA Today (NYSE:GCI) in paid circulation.

NYT:   Electronic markets are threatening The New York Stock Exchange (NYSE:NYX).

NYT:   Treasury officials want more banks to pay back bailout money.

NYT:   A suit filed against the SEC claims it did not detect the Madoff scheme.

NYT:   Thomson Reuters (NYSE:TRI) will buy Breakingviews.

NYT:   The head of EADS said the aircraft industry will do better than expected.

NYT:   Crédit Agricole will repay bailout money.

NYT:   About 7,300 people gave offshore tax data to the IRS.

FT:   The dollar was hit on signs from the Fed that rates will stay low.

FT:   Geithner aides made million on Wall St.

Bloomberg:   Xstrada dropped its $49 billion bid for Anglo American.

Bloomberg:   Consumer prices will probably show that inflation is not a risk.

You can join our open email distribution list to get updates each morning on analyst upgrades and downgrades, top day trader alerts, IPO’s and secondary offerings, Warren Buffett and other guru activity, M&A and more

Douglas A. McIntyre

Updated 2:44 Dell Inc. (NYSE: DELL) will launch a branded Android smartphone thru AT&T Inc. (NYSE: T) and possibly other carriers next year.  Source today is from WSJ, but ask this… How many phone and consumer electronics announcements have been rumored on Dell?

Updated 1.36 PM EST:  Pimco left the bondholders steering committee at CIT (NYSE:CIT) last month  (CNBC)

Updated 12.45 PM:  Polycom (NSADAQ:PLCM) could be taken over by Hewlett-Packard (NYSE:HPQ) or Dell (NASDAQ:DELL). Interdigital (NASDAQ: IDCC) could be bought by Nokia (NYSE:NOK) and ValueClick (NASDAQ:VCLK) could be taken over by any one of a number of companies.  (Barron’s)

Updated 12.41 PM:   GM head of American sales leaves amid talk that car company CFO may be next  (CNNMoney)

Update 10.50 AM EST:  Congress may pass a bill which will require that public companies split the roles of chairman and CEO.  (MarketWatch)

Thomson Reuters (NYSE:TRI) may be involved in the bidding for McGraw-Hill’s (NYSE:MHP) BusinessWeek working jointly with Zelnick Media. Strauss Zelnick is on the boards of Blockbuster (NYSE:BBI) and Take-Two Interactive (NASDAQ:TTWO)  (PaidContent).

Citigroup (NYSE:C) may sell it Philbro unit which is paying its chief $100 million  this year.  (CNBC)

Bank of America (NYSE:BAC) has narrowed its list of CEOs to two people  (WSJ).

Foxconn has a deal to make 300,000 to 400,000 Apple (NASDAQ:AAPL) tablet PCs to ship in Q1  (DigiTimes)

Collins Stewart believes that Google (NASDAQ:GOOG) and Yahoo! (NASDAQ:YHOO) are on the lookout for acquisitions. (The Deal).

Share sales by Steve Wynn, head of Wynn (NASDAQ:WYNN), and his COO may be” a canary in the coal mine to other investors to take some profits on the gains in this sector since the March lows.” That would include MGM (NYSE:MGM) and Las Vegas Sands (NYSE:LVS)  (TheStreet.com)

Private equity firms Bain Capital and THL Partners are asking banks that supported their buy-out of Clear Channel Communications to help restructure the firm’s debt. Those banks include Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), and Morgan Stanley (NYSE:MS).  (NYPost)

News Corp (NYSE:NWS) CEO Rupert Murdoch is in Japan and South Korea and may be discussing partnerships to build a rival product to the Amazon (NASDAQ:AMZN) Kindle.  (Reuters)

Vivendi will discuss selling its 20% stake in GE’s (NYSE:GE) NBCU at its October 19 board meeting to allow a transaction with Comcast (NADSAQ:CMCSA) which would involve the cable company getting control of media firm.  (BusinessWeek)

JPMorgan (NYSE:JPM) executive  Heidi Miller could be in the running for the CEO job at Bank of America. (The Big Money)

Douglas A. McIntyre

Crocs (CROX) Raised to Overweight at Piper Jaffray.
France Telecom (FTE) Raised to Overweight at JPMorgan.
Marsh & McLennan (MMC) Raised to Buy at UBS.
MetroPCS (PCS) Raised to Hold at Auriga.
Aqua America (WTR) Cut to Neutral at HSBC.
Leap Wireless (LEAP) Cut to Market Weight at Thomas Weisel; Cut to Hold at Soleil.
Novo Nordisk (NVO) Cut to Neutral at Goldman Sachs; Cut to Neutral at JPMorgan; Cut to Neutral at UBS.
Red Robin Gourmet (RRGB) Cut to Perform at Oppenheimer.
Telecom Italia (TI) Cut to Neutral at BofA/Merrill Lynch.
Thomson Reuters (TRI) Cut to Underperform at Jefferies.

JON C. OGG

JON C. OGG
June 8, 2009