MAJOR PAPERS:

• If AT&T (NYSE: T) were to acquire EchoStar Communications (NASDAQ: DISH) or DirectTV Group (NYSE: DTV), it's estimated that it would cost between $30B and $40B, and that should concern investors, according to the Wall Street Journal's (subscription required) "Heard on the Street" column.
• Verizon Communications (NYSE: VZ) is signing up tens of thousands of new subscribers tor it FiOs high speed TV and Internet service, that uses fiber optics, according to the Wall Street Journal, and the push is threatening the cable industry.

• The New York Times reported that Merrill Lynch (NYSE: MER) reported another $2.9B in write-downs today.
• Google (NASDAQ: GOOG) is expected to announce a partnership today with the Nielsen company for measuring how many people are viewing TV ads on a second-by-second basis, reported the New York Times.
• Carlos Ghosn, head of Nissan Motor Co (NASDAQ: NSANY) and Renault, continues to be interested in a partnership with a U.S. automaker, but says he 's not now speaking with anyone, reported the Associated Press.

MAJOR PAPERS:

• CtW Investment Group sent a letter to Countrywide Financial Corporation's (NYSE: CFC) Board of Directors "urging" for the resignation of CEO Angel Mozilo, reported the Wall Street Journal (subscription required).
  
• According to antitrust attorneys, a possible merger with a Big Pharma company may result in Biogen Idec (NASDAQ: BIIB) having to divest some overlapping assets or licensing deals in order for the deal to get approval from the Federal Trade Commission, reported the Financial Times "MergerMarket" blog.
• The Financial Times reported that Gilat Satellite Networks (NASDAQ: GILT) is working with UBS to evaluate "several strategic and private equity buyers" in buying Gilat, which could get over $500M in a sale, according to people familiar with the matter. Bids for the company are due by the end of the week, said the sources.

• The New York Times reported that Chinese investment bank Citic Securities is planning to invest $1B in Bear Stearns Companies (NYSE: BSC), according to sources.
• The New York Times reported that the head of the Federal Trade Commission, or FTC, has rejected numerous requests to open an investigation into Intel Corporation (NASDAQ: INTC) for anticompetitive conduct, according to inside sources.
• The Guardian reported that world oil production peaked last year, and production will fall by half as soon as 2030, according to a report by Germany-based organization Energy Watch Group.

• The Wall Street Journal (subscription required) reported that the SEC is investigating Countrywide Financial Corporation (NYSE: CFC) CEO Angelo Mozilo for selling $130.6M in stock in the first half of the year.
• While all eyes have been on a possible AT&T (NYSE: T) play for EchoStar Communications (NASDAQ: DISH), the Wall Street Journal's "Deal Journal" says AT&T may go after DirecTV Group (NYSE: DTV), and may be more likely, and could be a better deal for AT&T.

• The U.S. Department of Veteran Affairs has decided to sharply limit the use of GlaxoSmithKline's (NYSE: GSK) once-popular drug for Type 2 diabetes, Avandia. The decision is likely to further reduce revenue from Avandia, whose sales have dropped in the U.S. by an estimated 60% in the last five months, reported the New York Times.
• Goldman Sachs Group (NYSE: GS) said it would pay $172M for a majority stake in Indian metal castings maker Sigma Electricals and its affiliated companies, reported the Business Standard.
• A molecular diagnostic test for HPV developed by Digene, which is now part of Qiagen (NASDAQ: QGEN), has been found to be almost 40% more accurate than traditional cytology in identifying women with advanced cervical disease, according to a report published today in The New England Journal of Medicine.

MAJOR PAPERS:

• Under pressure to improve results, AMR Corporation (NYSE: AMR), the parent of American Airlines, will prepay $545M in aircraft debt in the fourth quarter, cutting its annual interest expense by $25M, reported the Wall Street Journal.
• AT&T (NYSE: T) and India's Mahindra Telecommunications Private LTD have jointly applied for a unified access service license in India to provide wireless service, according to the Wall Street Journal.

• The New York Times reported that the tentative contract between General Motors Corporation (NYSE: GM) and the United Auto Workers union would allow GM to close two plants, and possibly shut down several other facilities, according to a copy of the agreement posted on the Internet.

• According to the BetaNews Web site, Microsoft Corporation (NASDAQ: MSFT) will reportedly hold an event today to launch the second generation of its Zune music players.
• Google Inc's (NASDAQ: GOOG) AdSense system that now reportedly allows people in Malaysia to make payments through Western Union Company (NYSE: WU) could become a "quasi bank," according to Bear Stearns analyst Robert Peck, reported CNet.com.

MAJOR PAPERS:

• In December, Siemens AG (NYSE: SI) disclosed questionable transactions in its telecom and power generation businesses totaling about $600M. Now that figure is estimated to be about four times that, according to the Wall Street Journal.
• Microsoft Corporation's (NASDAQ: MSFT) new video game Halo 3 has generated about $170M in sales on the first day, according to the Wall Street Journal, setting a new record in the games industry.
• Hedge fund Citadel Investment has disclosed it now owns 2.6M shares of Zale Corporation (NYSE: ZLC) for a 5.3 % stake in the company, or more than three times Citadel's position when it was last disclosed on June 30, reported Barron's Online's "Inside Scoop" column.
• The Financial Times reported that Google Inc (NASDAQ: GOOG) is planning to expand it's staff by 33%, with most of the hiring in Europe.

• A U.S. senator is asking Medtronic Inc (NYSE: MDT) to explain payments the company has allegedly made to doctors, reported the New York Times.

• According to multiple sources, IndyMac Bancorp (NYSE: IMB) has started downsizing its mortgage operations by offering voluntary severance packages to an undisclosed number of employees, reported TheTruthAboutMortgage.com.

Bear Stearns (NYSE: BSC) is recently up $9.76 to $124.16. The NY Times is reporting Warren Buffett & others are looking at a stake in BSC. BAC call option volume of 27,438 contracts compares to put volume of 29,491 contracts. BSC October option implied volatility of 44 is near its 26-week average of 43 according to Track Data, suggesting flat price movement.

Merrill Lynch (NYSE: MER) is recently down $2.04 to $70.08. Goldman Sachs-(NYSE:GS) says "MER appears to be caught in the cross hairs of a number of headwinds in the quarter -- leveraged loan losses, mark to market losses on their CDO exposure, and deteriorating mortgage fundamentals." MER call option volume of 21,310 contracts compares to put volume of 20,870 contracts. MER October option implied volatility of 41 is above its 26-week average of 30 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

MAJOR PAPERS:

• Build-A-Bear Workshop Inc's (NYSE: BBW) stock has been in a nose dive for most of the year, failing to reach sales targets. If there's no bid soon, reported the Wall Street Journal, this holiday season will be a miserable one for same store sales. Mattel Inc (NYSE: MAT) and Children's Place Retail Stores Inc (NASDAQ: PLCE) are considered possible buyers, as well as private equity firms.
• Cisco Systems Inc (NASDAQ: CSCO) and Haier Group, China's largest manufacturer of appliances, have agreed to work together on home networking in China and international markets, according to the Wall Street Journal.
• "Disney (NYSE: DIS) inspired" homes will be offered by KB Home (NYSE: KBH) beginning in 2008, following their successful collaboration with Martha Stewart Living Omnimedia (NYSE: MSO) homes two years ago, reported the Wall Street Journal.

• Credit Suisse Group (NYSE: CS) is laying off about 150 workers from its mortgage-backed securities unit, a source told the New York Times.
• The EE Times reported that Chinese silicon foundry provider Semiconductor Manufacturing International Corporation (NYSE: SMI) has delayed the opening of its 300-mm wafer fab in Wuhan, China, according to an analyst.
• India's Wipro Limited (NYSE: WIT) has received a five year, $130M contract from British utility Thames Water to provide integrated IT services, reported the Economic Times.

MAJOR PAPERS:

• Countrywide Financial Corporation (NYSE: CFC), seeking more deposits to finance mortgage lending, plans to double its number of branch offices offering certificates of deposit and money-market accounts, the Wall Street Journal reported.
• Barron's Online's "Inside Scoop" column reported that two Gap Inc (NYSE: GPS) insiders -- former Gap CFO Byron Pollitt Jr and Gap founder Donald Fisher -- have sold shares in the company this month; Pollitt sold his remaining stake of about $9.4M, while Fisher sold shares worth $24.9M.
• Time Warner Inc (NYSE: TWX) is "taking a hard look" at spinning off its cable channel business, said the company's CEO, Dick Parsons, reported the Financial Times.

• The New York Times reported that major American retailers, including Target Corporation (NYSE: TGT), have found more lead-contaminated children's products in their inventories, but have not yet notified the public, according to documents released by Congressional investigators.
• General Motors Corporation (NYSE: GM) and the United Auto Workers union still had not reached agreement on several key issues last night, reported the New York Times.

MAJOR PAPERS:

• On January 1, 2008 Jeffrey L. Bewkes may be the new CEO of Time Warner Inc (NYSE: TWX), reported the Wall Street Journal. The current president and COO, is expected to take over from Richard Parsons.
• Paetec Holding Corp (NASDAQ: PAET) has paid $492M for McleodUSA, creating a tough rival to AT&T (NYSE: T) and Verizon Communications (NYSE: VZ) for business telephone sales, according to the Wall Street Journal.
• Sony Corporation (NYSE: SNE) is focusing its business on consumer electronics, and may sell its advanced chip production facility, with possible buyers including Toshiba Corporation (OTC: TOSBF) and IBM Corporation (NYSE: IBM), reported the Wall Street Journal.

• The New York Times reported that New York Attorney General Andrew Cuomo is investigating five large energy companies, AES Corporation (NYSE: AES), Dominion (NYSE: D), Dynegy Inc (NYSE: DYN), Peabody Energy Corporation (NYSE: BTU) and Xcel Energy (NYSE: XEL), in order to determine whether their plans to build coal-fired power plants pose undisclosed financial risks that their investors should know about.
  

• According to sources, BuddyTV, a TV community site, is being acquired by Comcast Corporation (NASDAQ: CMCSA) reported PaidContent.org.
• TheInquirer.net reported, citing sources, that Intel Corporation (NASDAQ: INTC) will launch a "famous new platform" this Tuesday.

MAJOR PAPERS:

• In an effort to stem the flow of weaponry into Iraq, the Pentagon is planning to build its first base near the Iraq-Iran border, reported the Wall Street Journal (subscription required).
• Kohlberg Kravis Roberts & Co. is expected to make concessions with the investment banks putting together $24B in debt for its purchase of First Data Corporation (NYSE: FDC), something it had previously been unwilling to do, reported the Wall Street Journal.
• The Bush administration wants to limit the role of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) in the home mortgage crisis, but a number of Democrats, led by New York Senator Schumer, want to increase the authority of both firms by loosening growth constraints, and increase the size of mortgages they can buy in high cost areas, reported the Wall Street Journal.
• While the Nasdaq Stock Market Inc (NASDAQ: NDAQ) said it extended the deadline earlier this week, the "self-imposed deadline" for an LSE bid passed without a single firm bid, reported the Financial Times (subscription required).

• The U.K. Times reported that Russian state-controlled energy company Gazprom (OTC: GZPFY) considered making a rival $5B offer for business news company Dow Jones and Company Inc (NYSE: DJ), according to a source.
• The New York Times reported that after three separate recalls of Mattel Inc (NYSE: MAT) toys, Disney (NYSE: DIS) said it would begin testing toys featuring Disney characters, including ones already on store shelves.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Weekday Trader" called Nucor Corporation (NYSE: NUE), a low-cost steel producer with a 4.7% dividend, a stock worthy of consideration.
• Royal Dutch Shell (NYSE: RDS.A) and PetroChina Company Limited (NYSE: PTR) have signed a provisional agreement for Shell to sell liquefied natural gas to PetroChina, reported the Wall Street Journal (subscription required).
  
• The Financial Times (subscription required) reported that Renaissance Technologies and DE Shaw, two of the biggest quantitative hedge fund managers, are raising money, despite concerns over the poor performance of many computer-driven funds last month.

• According to the New York Times, Ventana Medical Systems Inc (NASDAQ: VMSI), which makes cancer diagnostic equipment, is expected to announce today that it will acquire Spring Bioscience for $28.9M in cash.
• The New York Post reported that General Electric Company (NYSE: GE) CEO Jeffrey Immelt is planning on bringing Beth Comstock back as GE's chief marketing officer, according to sources close to Immelt.

MAJOR PAPERS:

• Amid mounting criticism for its role in the subprime crisis, McGraw Hill Companies Inc (NYSE: MHP) replaced Kathleen Corbet, the president of Standard & Poors, with Deven Sharma, a McGraw Hill senior VP who has been with S&P since the end of last year, reported the Wall Street Journal.
• Barron's Online's "Inside Scoop" column reported that Aeropostale Inc (NYSE: ARO) CFO Michael Cunningham sold $2.1M in stock Monday at an average price of $22.43 per share, according to SEC data.

• Indian IT outsourcing companies Infosys Technologies (NASDAQ: INFY) and Wipro Limited (NYSE: WIT) have reportedly both shown interest in buying out the US-based high-end analytics company MarketRx, which is believed to be worth between $150M and $160M, reported the Economic Times.
• The New York Times reported that General Electric Company's (NYSE: GE) NBC Universal has decided not to renew its contract to sell digital downloads of television shows on Apple Inc's (NASDAQ: AAPL) iTunes online store.
• From BusinessWeek's "Inside Wall Street" column:
  
• Coca-Cola Company (NYSE: KO) is making a comeback, thanks to its huge global distribution edge.
  
• Southern Copper Corporation (NYSE: PCU) is a good copper play, as it is undervalued and ignored, especially considering its 6.21% dividend yield.
  
• Ariad Pharmaceuticals (NASDAQ: ARIA) may be one of the more underappreciated and undervalued biotech stocks around.

MAJOR PAPERS:

• Ratan Tata, chairman of the Tata Group of India, has confirmed his interest in the Jaguar and Land Rover units of Ford Motor Company (NYSE: F), according to the Wall Street Journal.

• The Washington Post reported that Home Depot Inc (NYSE: HD) has made a deal to sell its supply arm, HD Supply, for $8.5B, down from the original price of $10.3B, to a consortium of private equity firms headed by Carlyle Group, inside sources say.
• According to a sources with knowledge of the discussions, Altria Group Inc (NYSE: MO) is considering spinning off its Philip Morris International division as part of a restructuring plan to increase shareholder value, reported the New York Times.
• A Chinese technology company has expressed interest in buying Seagate Technology (NYSE: STX), reported the New York Times.
• According to senior industry analysts, Dr. Reddy's Laboratories (NYSE: RDY) is eyeing U.S. based Bradley Pharmaceuticals Inc (NYSE: BDY), which is expected to be valued at between $380M-$400M, reported the Economic Times.

MAJOR PAPERS:

• According to the Wall Street Journal (subscription required), citing people familiar with the matter, E*Trade Financial Corporation (NASDAQ: ETFC) and TD Ameritrade Holding Corporation (NASDAQ: AMTD) have been in serious merger discussions for weeks, but are still not close to a deal.
• Dubai World, a holding company for the Persian Gulf state, will purchase a 9.5% stake in MGM Mirage (NYSE: MGM), the Kirk Kerkorian controlled Las Vegas casino company, for $5B. The deal will also give Dubai World 50% ownership in CityCenter, MGM's most ambitious development project, reported the Wall Street Journal.
• The Wall Street Journal reported that almost 10 months after Google Inc (NASDAQ: GOOG) acquired YouTube for $1.65B, the video-sharing site is rolling out its first advertisements in the videos.
• The Financial Times (subscription required) reported that private equity firm WL Ross is looking to get involved in the subprime lending business, said the firm's owner, Wilbur Ross. WL Ross may look to acquire lenders, mortgage portfolios or even companies that service loans, Ross added.

• The New York Times reported that Kazakhstan's government is threatening to suspend one of the world's largest oil projects, due to environmental damage it says the work is causing in the Caspian Sea. The consortium developing the field includes Eni, Exxon Mobil Corporation (NYSE: XOM), Royal Dutch Shell (NYSE: RDS.A), ConocoPhillips (NYSE: COP), and Total SA (NYSE: TOT).

MAJOR PAPERS:

• According to an internal email, Countrywide Financial Corporation (NYSE: CFC) has begun laying off employees involved in originating loans, reported the Wall Street Journal (subscription required).

• The New York Times reported that the market is having doubts about the deal for the Tribune Company (NYSE: TRB), despite confidence from those involved that the deal will be done.
• Just weeks after acquiring its first pension scheme, Citigroup Incorporated (NYSE: C) is looking for another; Citi is said to be looking at a European scheme that is worth about £200M, reported the U.K. Times.
• While the rugged cowboy has been the face for Altria Group Inc's (NYSE: MO) Philip Morris for many years now, the global brand could be fading, according to the U.K. Times.
• American Express Company (NYSE: AXP) has put its private banking business, which could be worth $400M-$500M, up for sale, according to the U.K. Times.
• The Telegraph reported that a subsidiary of HSBC Holdings (NYSE: HBC), the Hong Kong and Shanghai Banking Corporation, is in talks to buy a 51% controlling stake in Korea Exchange Bank, which would cost in the region of £2.5B.