- Goldman's Mario Draghi convinced Italy president Napolitano not to resign (Reuters)
- David Stockman Warns of Crash Of Fed-Fueled Bubble Economy (BBG)
- Cyprian archbishop calls on Central Bank's head, Finance Minister to resign (Voice of Russia)
- Cyprus Parliament President Says Country Should Exit Eurozone (Zero Hedge)
- Cyprus seeks to find people behind bank crisis (FT)
- Argentina sticks to its guns over holdout creditor payments (FT)
- 40% of all trading is now done in dark pools and off exchanges (NYT)
- Sequester Impact Remains Elusive (WSJ)
- China’s Home Prices Increase Most in 26 Months, SouFun Says (BBG)
- Beijing, Shanghai Add to Home Curbs as China Acts to Cool Market (BBG)
- Two men die in Shanghai in first human cases of bird flu strain (SCMP)
- Economics will catch up with the euro (FT)
- How much gold is there in the world? (BBC)
- Fannie Mae Regulator Sets No-Doc Modifications for Borrowers (BBG)
- For Eike Batista, Reality Intrudes (WSJ)
- Treasuries’ Lure Abroad Grows in $3 Trillion Fed Account (BBG)
Overnight Media Digest
WSJ
* The U.S. flew F-22 stealth fighter jets to South Korea Sunday for joint exercises, a further demonstration of advanced military capabilities meant to deter provocations from Pyongyang.
* States are becoming increasingly polarized over abortion, as some legislatures pass ever-tighter restrictions on the procedure while others consider stronger legal protections for it, advocates on both sides say.
* Cyprus's central bank spelled out the financial damage to big deposit holders at Bank of Cyprus PCL, the country's biggest lender, saying they will lose almost 40 percent of their deposits as a result of a sweeping restructuring of the lender.
* U.S. authorities are investigating whether a unit of Japanese electronics giant Panasonic Corp paid bribes abroad to land business, according to company documents reviewed by The Wall Street Journal.
* Decision time is nearing for Nokia Corp Chief Executive Stephen Elop on how to proceed with the Nokia Siemens Networks joint venture - a former problem child that has turned to a cash cow during his 30-month tenure.
* Louis D'Ambrosio received no bonus or stock awards for serving as Sears Holdings Corp chief executive last year, cutting his compensation by nearly 90 percent to $1.3 million, according to a regulatory filing.
* Aereo Inc, the Web television startup backed by media mogul Barry Diller, has discussed partnerships with major pay-TV distributors and Internet service providers, including AT&T Inc and Dish Network Corp, as it looks to roll out its fledgling service to more markets, people familiar with the matter say.
* The government of Saudi Arabia confirmed Sunday that it is seeking to regulate local use of Internet-based messaging services such as Skype and Whatsapp, and threatened "suitable measures" if the providers of those services failed to comply with its demands.
* Proxy advisory firm Glass Lewis & Co said MetroPCS Communications Inc investors should vote against a merger with Deutsche Telekom AG unit T-Mobile USA, adding to negative sentiment around the deal just two weeks before shareholders are to vote
Canada
THE GLOBE AND MAIL
* The Ontario government has reached an agreement in principle with the union representing high-school teachers at the province's public school boards. ()
* Thousands of barrels of Alberta oil-sands crude - the same stuff destined for the controversial Keystone XL project - spilled into a suburban Arkansas neighborhood over the weekend after a much smaller, older pipeline ruptured, forcing the evacuation of dozens of homes. ()
NATIONAL POST
* A Canadian warship has made a major drug bust at sea. The Department of National Defence said the HMCS Toronto has seized around 500 kilograms of heroin from a boat in the Indian Ocean.
China
CHINA SECURITIES JOURNAL
-- China's total 1,274 securities mutual funds made a combined net profit of 126.7 billion yuan ($20.4 billion) last year, reversing a loss in 2011.
-- A survey by China Securities Investor Protection Fund shows that investors have become more pessimistic over the prospect of the country's stock market, with an investor confidence index compiled by the fund dropping to 56.8 percent in March, 7.9 percentage points lower than February.
SHANGHAI SECURITIES NEWS
-- Starting on Monday, those residents from Hong Kong, Macao and Taiwan who live in Shanghai can open accounts to trade China's local-currency A-shares for the first time in line with new regulations issued earlier this year.
-- Shareholders of Shanghai-listed China Everbright Bank Co Ltd have approved the company to issue up to 12 billion shares in a Hong Kong listing, confirming an IFR report that the mid-sized lender is pushing ahead with its planned $2 billion share offering.
CHINA DAILY
-- The number of people known to have died in a landslide that buried 83 people in a mining area near Lhasa rose to 17 on Sunday evening.
SHANGHAI DAILY
-- Users of Tencent's popular WeChat chatting application may have to pay fees after media reported China's major telecommunications operators are looking to charge users, a senior regulatory official said yesterday.
PEOPLE'S DAILY
-- The recent visit to some African countries and BRIC nations by new Chinese President, Xi Jinping, which ended on Sunday, will have a profound impact on the relations of China and these countries, Foreign Minister Wang Yi said.
Fly on the Wall 7:00 AM Market Snapshot
ANALYST RESEARCH
Upgrades
AvalonBay (AVB) upgraded to Neutral from Sell at Citigroup
ChinaEdu (CEDU) upgraded to Overweight from Neutral at Piper Jaffray
Clean Harbors (CLH) upgraded to Outperform from Perform at Oppenheimer
Molson Coors (TAP) upgraded to Buy from Neutral at Goldman
News Corp. (NWSA) upgraded to Outperform from Neutral at Credit Suisse
Plains All American (PAA) upgraded to Buy from Hold at Deutsche Bank
RF Micro Devices (RFMD) upgraded to Buy from Hold at Canaccord
RPC, Inc. (RES) upgraded to Buy from Neutral at SunTrust
eBay (EBAY) upgraded to Buy from Hold at Canaccord
Downgrades
ARMOUR Residential (ARR) downgraded to Equal Weight from Overweight at Barclays
AbbVie (ABBV) downgraded to Market Perform from Outperform at BMO Capital
Buckeye Partners (BPL) downgraded to Hold from Buy at Deutsche Bank
CapitalSource (CSE) downgraded to Equal Weight from Overweight at Barclays
Coca-Cola Enterprises (CCE) downgraded to Neutral from Buy at Goldman
Regal Entertainment (RGC) downgraded to Neutral from Buy at MKM Partners
Southcross Energy Partners (SXE) downgraded to Market Perform at Wells Fargo
Southcross Energy Partners (SXE) downgraded to Equal Weight at Barclays
Susquehanna (SUSQ) downgraded to Hold from Buy at Jefferies
United Continental (UAL) downgraded to Equal Weight from Overweight at Evercore
Initiations
Artisan Partners (APAM) initiated with a Buy at Citigroup
Artisan Partners (APAM) initiated with a Neutral at Goldman
Halcon Resources (HK) initiated with an Outperform at Wells Fargo
NGL Energy Partners (NGL) coverage resumed with an Outperform at Wells Fargo
HOT STOCKS
Supreme Court denial of Novartis’ (NVS) Glivec patent clarified limited IP protection in India
Dell (DELL) filed preliminary proxy materials for merger with Michael Dell, Silver Lake
Tesla (TSLA) Model S sales exceeded target, amended Q1 guidance to full profitability
Gastar Exploration (GST) to acquire proven reserves from Chesapeake (CHK) for $85M
NEWSPAPERS/WEBSITES
- Between U.S. stocks reaching highs and Treasury yields holding near all-time lows, one of these two contrary markets will eventually have to give, the Wall Street Journal reports
- Procter & Gamble (PG), Pfizer (PFE) and Arm & Hammer (CHD) owner Church & Dwight Co. all acquired makers of dietary supplements last year. More deals are expected, as companies bet baby boomers and rising healthcare costs will drive demand for products, the Wall Street Journal reports
- Stronger domestic demand helped China's factory activity to rebound in March, with new orders up sharply in a sign that the underlying economic recovery is strong enough to weather any risks from patchy export performance, surveys showed on Monday, Reuters reports
- KKR (KKR) entered into exclusive talks to buy a majority of French fashion brands Maje, Sandro and Claudie Pierlot, sources say, Reuters reports
- U.S. airlines (DAL, LCC, LUV, UAL) are now rewarding investors with the biggest returns in more than a decade. The Bloomberg U.S. Airlines Index of 10 carriers jumped 35% in Q1, the best start to a year since at least 1999, Bloomberg reports
- Investors are boosting wagers on higher commodity prices at the fastest pace in almost four years, rebounding from the least bullish position since 2009, on signs that the U.S. is accelerating and Europe’s debt crisis is easing, Bloomberg reports
BARRON’S
Michael Dell is under pressure to raise bid for Dell (DELL, BX)
Google (GOOG), Facebook (FB), Amazon (AMZN) finding more cost-effective servers (DELL, HPQ)
Eaton (ETN) stock could rise 20% if Cooper acquisition shows promise
STMicroelectronics' (STM) turnaround due to focus on other markets
Ruby Tuesday (RT) could see a rebound in share price
WellPoint (WLP), Seagate (STX), Western Union (WU), AT&T (T) buybacks give bullish sign