“HSBC Holdings Plc (HSBA) said it’s likely to face criminal charges from U.S. anti-money laundering probes and the cost of a settlement may “significantly” exceed the $1.5 billion the bank has set aside.

The bank made an additional $800 million provision in the third quarter to cover the costs of the investigation, adding to the $700 million it had already earmarked. HSBC also put aside more than $357 million in the period to compensate U.K. clients wrongly sold payment-protection insurance on loans as it posted an increase in pretax profit that missed analysts’ estimates.”

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Apparently $KO was hacked in March, but the company decided not to release any public statement….

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“Sharp Corp. (6753) may turn to the last resort of Japanese companies facing potential bankruptcy — the government.

With 200 billion yen ($2.5 billion) of convertible bonds maturing in 2013, Sharp may have to ask the state Enterprise Turnaround Initiative Corp. or Innovation Network Corp. ofJapan for money, said Fumiaki Sato, co-founder of Sangyo Sosei Advisory Inc., a turnaround advisory firm in Tokyo. Sharp has failed to win a planned 67 billion-yen equity investment from billionaire Terry Gou’s Foxconn Technology Group.

Sharp hemorrhaged 103 billion yen in cash from operations in the first half of the year as Japan’s electronics industry struggles with dwindling demand and competition fromSamsung Electronics Co. (005930) A bailout may follow the precedent set by the government rescue of Japan Airlines Corp. two years ago that wiped out shareholders while keeping planes in the air.

“Japan has no other option but to help companies that need a bailout, given the possible impact to the economy,” said Yuuki Sakurai, president of Fukoku Capital Management Inc. in Tokyo. “If Sharp fails, there will be a lot of job losses, including those at suppliers, and the impact of that can’t be ignored.”

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“(Reuters) – Kraft Foods Group Inc , which sells Planters peanuts, Oscar Mayer lunch meat and Velveeta cheese, said it approved a $650 million restructuring plan related to its spin-off from Kraft Foods Inc in October.

The company said the restructuring cost involves severance related to the spin-off, asset disposals and other one-time expenses.

Kraft Foods Group said about half of the total restructuring cost is expected to result in cash expenditures. In addition to the restructuring, the company also approved related capital expenditures of $200 million.

It expects to complete the restructuring by the end of 2014.”

Full article

Gapping up

TRIP +19%, ROVI +15%, MX +11.3%, PCLN +9.4%, LNKD +8.6%,

JCOM +8.3%, BGFV +7.6%, SBUX +7.3%, QTM +5.9%, ZAGG +4.2%,

EQIX +3.8%, JOE +3%, YELP +1.7%, ARR +1.3%, MNKD +4.2%, GMCR +1.7%

Gapping down

ALSK -13.4%, GLUU -11%, MNST -8.9%, GMED -8.3%, ALU -8.1%,

PSEC -6.5%, MELI -6.4%, SWKS -6.1%, GES -5%, FSLR -5%, FLR -4.6%,

GMLP -4.5%, VRTX -4.3%, BEBE -3.9%, PBI -3.7%, SYX -3.6%, IPHI -3.6%,

OPEN -2.9%, CHK -2.6%, MTZ -2.6%, DB -1.7%, AIG -1.5%, CACC -1.5%,

LYB -2.5%,  GES -5%, MNST -8.9%,

“Citigroup [C  37.95    0.57  (+1.52%)   ], Deutsche Bank [DB  46.59    0.88  (+1.93%)  ], HSBC [HSBA-LN  621.60    -3.40  (-0.54%)   ] and JPMorgan Chase [JPM  42.84   1.16  (+2.78%)   ] will need to hold the most extra capital of 28 banks considered so large and complex they need an extra buffer to absorb potential losses, global regulators said on Thursday.

The four global banks will be required to hold an extra 2.5 percent of common equity as a percentage of risk-weighted assets on top of a 7 percent minimum being phased in from January, according to the Financial Stability Board, a regulatory task force for the group of 20 top economies.”

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Wait is a four letter word in NYC….

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Reported by CNBC…..

“NEW YORK (MarketWatch) — Retailers, whose fiscal October ended on Saturday before Hurricane Sandy pounded the mid-Atlantic and Northeast region, reported a surprisingly positive October on Thursday, with major chains projecting a still upbeat holiday outlook

Chains including Macy’s Inc. M +4.54%  and Costco Wholesale Corp. COST -0.49%  said they expected to either make up lost Sandy sales or post just a small negative impact during the critical holiday quarter.

Retailers reported a 3.8% total increase in a Sanford C. Bernstein & Co. survey of 17 retailers, topping the average estimate of a 3.1% increase. Department stores were among the bright spots. Macy’s, Nordstrom Inc. JWN +1.06%   and mid-priced chain Kohl’s Corp. KSS +2.75%  all topped expectations.”

Full article

Rumors have been building that Mulally is on the way out….well $F put that rumor to rest this morning assuring investors that the genius is staying on board until at least 2014.

Full article

Gapping up

AVG +10.5%, ELLI +9.4%, WNC +7.3%, BT +4.8%, TTM +3.1%, BMC +2.3%,

MTGE +1.5%, V +1.3%, CRUS +0.9%, JOY +1.6%, RVBD +2.9%, REDF +5.7%,

RIO +1.1%, MTG +10.3%, JDAS +8.0%,  NEWP +18%,  AVG +8.8%,

Gapping Down

ZUMZ -11.1%, OTEX -7.3%, NFLX -1.6%

“(Reuters) – U.S. retailer Costco Wholesale Corp (COST) posted a better-than-expected 7 percent rise in October sales at stores open at least a year, helped by higher gasoline prices and a weak dollar.

Analysts had expected a rise of 6.6 percent, including the impact of fuel prices and foreign exchange, according to Thomson Reuters data.

Excluding the effects of fuel and currency exchange, Costco posted an October same-store sales increase of 5 percent.”

Full article

“The natural gas glut that’s straining drillers is creating a bonanza for pipeline operators, spurring the biggest increase in exports to Mexico and Canada since the 1970s.

Kinder Morgan Energy Partners LP (KMP), the biggest U.S. pipeline company, and its rivals are planning to add 2.4 billion cubic feet a day of export capacity within three years, or enough gas to heat 32,000 U.S. homes. That’s a 58 percent increase on this year’s total, which in turn was up 34 percent from 2011.”

Full article

“Even as shares of Alcatel-Lucent SA (ALU) trade near a 23-year low, growing numbers of investors are betting they haven’t yet hit bottom.

The unprofitable phone-equipment maker is France’s most shorted stock, based on data compiled by Markit, a financial- information provider in London. Roughly 16 percent of Alcatel’s shares are on loan — borrowed stock is typically shorted –more than six times the European average, according to Markit.”

Full article 

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$FB shareholders seem to be hitting the bid or perhaps some pro shenanigans are taking place with stop loss orders on the exchange. At any rate, the stock is down 2.5% after being down as much as 4%. Two more lock ups are due on November 14th, and December 14th….

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“(Reuters) – Ally Financial Inc, the U.S. auto lender 74 percent owned by the U.S. government, on Wednesday said it has repaid $2.9 billion in debt issued under a financial-crisis-era program designed to bolster confidence in the banking system.

The former auto lending arm of General Motors Co paid back $2.9 billion in debt guaranteed by theFederal Deposit Insurance Corp’s Temporary Liquidity Guarantee Program.

The debt, issued on Oct 30, 2009, came due on Tuesday. The lender plans to repay the remaining $4.5 billion in debt it issued under the program in December.

Other financial institutions such as Bank of America Corp have been repaying debt issued under the program.”

“The I.B.M. scientists at the T.J. Watson Research Center in Yorktown Heights, N.Y., have been able to pattern an array of carbon nanotubes on the surface of a silicon wafer and use them to build hybrid chips with more than 10,000 working transistors.

Against all expectations, silicon-based chips have continued to improve in speed and capacity for the last five decades. In recent years, however, there has been growing uncertainty about whether the technology would continue to improve.

A failure to increase performance would inevitably stall a growing array of industries that have fed off the falling cost of computer chips.”

Full article

“JPMorgan Chase & Co. (JPM) sued the executive responsible for supervising Bruno Iksil, the London trader whose market-moving wagers led to him being nicknamed the London Whale and who worked in the division responsible for a $6.2 billion trading loss.

Javier Martin-Artajo, Iksil’s boss in the chief investment office, is a defendant in a London lawsuit filed Oct. 22 by the New York-based bank and made public today. The court filings didn’t reveal any details of the complaint.”

Full article

“Warren Buffett’s Berkshire Hathaway Inc. (BRK/A) is extending its bet on the U.S. housing market by forming a venture with Brookfield Asset Management Inc. (BAM/A) as low interest rates, inventory and prices spur a real-estate rebound.

Berkshire’s HomeServices of America Inc. unit will be the majority owner of the venture to manage a U.S. residential real- estate affiliate network, according to a statement on the new company’s website. The firms plan to offer a new franchise brand, Berkshire Hathaway Home Services, starting next year. Brookfield’s network has operated under the Prudential Real Estate and Real Living Real Estate brands.”

Full report