U.S. Index Futures Decline on Commodities Slump, Growth Concerns (BBG) Al Qaeda claims French attack, derides Paris rally (Reuters) Charlie Hebdo With Muhammad Cover on Sale With Heavy Security Precautions (BBG) How an Obscure Tax Loophole Brought Down Obama's Treasury Nominee (BBG) ECB’s bond plan is legal ‘in principle’ (FT) Charlie Hebdo fallout: Specter of fascist past haunts European nationalism (Reuters) DRW to acquire smaller rival Chopper Trading (FT) Oil fall could lead to capex collapse: DoubleLine's Gundlach (Reuters) Paris Attacker Amedy Coulibaly’s Path to Terror (WSJ) Nerves Rattled in U.S. Equities as S&P 500 Volatility Turns Ugly (BBG) Russian finance minister warns on spending as crisis deepens (Reuters) BofA Said to Oust 150 Hedge Fund Clients Under New Rules (BBG) Overnight Media Digest WSJ * White House adviser John Podesta will take on a senior advisory role in Hillary Clinton's emerging presidential bid after he leaves the administration in February - another sign that Clinton will launch a 2016 campaign. (http://on.wsj.com/1IsWt2k) * A surge of oil from outside of the Middle East flooded global energy markets. The worldwide thirst for crude did not keep up. OPEC stood by as prices fell and then fell more. Welcome to the world of oil in 2015 - a repeat in surprising ways of the story 30 years ago. (http://on.wsj.com/1IuEbhk) * For years, the United States has ceded more and more of its manufacturing to low-cost corners of the global economy. Some companies now want to come home. (http://on.wsj.com/1FTrbDZ) * The man who last week murdered four Jewish hostages in a kosher grocery and shot down a police officer nursed deep resentment against French law enforcement. (http://on.wsj.com/1z9NDoP) * The World Bank cut its outlook for global growth Tuesday, saying a strengthening U.S. economy and plummeting oil prices will not be enough to offset deepening trouble in the eurozone and emerging markets. (http://on.wsj.com/1IJ3xX2) * MetLife Inc is challenging the federal government's decision to subject the insurer to stricter oversight, setting up the biggest test yet for regulators responsible for protecting the U.S. financial system from another crisis. (http://on.wsj.com/1AZqlTf) * The U.S. Supreme Court on Tuesday adopted a borrower-friendly interpretation of a federal law that gives consumers the right in some circumstances to unwind certain mortgage loans. (http://on.wsj.com/1swJxou) * Adidas AG plans to sharply ramp up endorsement deals with U.S. pro football and baseball players in the next few years, as the German sportswear maker tries to gain traction in the American market. (http://on.wsj.com/1yafvZZ) * Caesars Entertainment Corp largest unit is preparing to file for bankruptcy protection as soon as Thursday. (http://on.wsj.com/1C5gYhC) * Alibaba Group Holding Ltd said on Wednesday it had bought a controlling stake in a Chinese Internet marketing firm AdChina, in a move aimed at expanding its advertising business. (http://on.wsj.com/1BZm413) FT Plunging oil prices pushed Britain's inflation rate to its lowest level since 2000 and with further declines inevitable in the months ahead, the Bank of England suggested not to consider raising interest rates in the near future. UK's Ministry of Defence will be forced to make more significant troop cuts unless the next government agrees to maintain real-term increases to the defence budget. New figures show rising costs of huge new military equipment programmes such as the replacement of Britain's nuclear deterrent. Britain's Local Government Association, which represents all but two of the 375 councils in England and Wales, say the government has left them nearly 5 billion pounds ($7.59 billion) short of the funds they need to provide extra school places over the next decade for the country's rising population. NYT * MetLife Inc sued a panel of regulators led by the Treasury secretary to fight its designation as "systemically important," making it the first financial company to go to court over the issue since the government started singling out so-called too-big-to-fail institutions in an effort to stem any future financial crises. (http://nyti.ms/1z7KFkI) * Ocwen Financial Corp, the subprime mortgage servicing firm that has already been under intense regulatory scrutiny in New York State, is now entangled with a California regulator in a dispute that complicates the company's ability to operate in that state. (http://nyti.ms/1DX7nuK) * Ryanair Holdings Plc, the largest shareholder of the Irish airline Aer Lingus Group Plc, said it expected the parent of British Airways to make another takeover bid for Aer Lingus as soon as this week. (http://nyti.ms/1yhRXiN) * Even with oil prices continuing to plummet and oil companies decommissioning drilling rigs every day, the Energy Department projected that domestic crude production would continue to rise in 2015, although growth would slow. (http://nyti.ms/1wY1OYa) * In President Obama's latest move using executive authority to tackle climate change, administration officials will announce plans this week to impose new regulations on the oil and gas industry's emissions of methane, a powerful greenhouse gas, according to a person familiar with Obama's plans. The administration's goal is to cut methane emissions from oil and gas production by up to 45 percent by 2025 from the levels recorded in 2012. (http://nyti.ms/1xYwlJl) * President Obama on Wednesday will ask the Federal Communications Commission to pre-empt state laws that restrict communities' ability to expand high-speed Internet access to underserved areas. (http://nyti.ms/1yhSrFP) * Tesla Motors Inc Chief Executive Elon Musk urged traditional automakers to step up their efforts at electrifying automobiles, saying that with gasoline prices hovering in the $2 a gallon range, high fuel prices can no longer be expected to drive consumers toward alternatives. (http://nyti.ms/1yhSAcm) Canada THE GLOBE AND MAIL ** The Bank of Canada is acknowledging for the first time that the world may be facing a prolonged oil-price slump, casting a dark shadow over the country's economic prospects. (http://bit.ly/1xYQn6B) ** Ottawa will spend as much as C$100 million to safeguard Canadian government computers after a Chinese state-backed hacker broke into the National Research Council's system last summer. The 2015 budget is expected to help underwrite the bill for upgrading network security. (http://bit.ly/1KIKHD2) ** Insolvent fashion chain Mexx Canada is liquidating all of its 95 stores in the wake of overall mixed results among retailers during the holiday selling season and heightened competition. (http://bit.ly/1IvuKOC) NATIONAL POST ** The Conference Board of Canada said a recession in Alberta is on the way, given that many large oil and gas producers have pared back their spending plans for the coming year and some have announced layoffs. (http://bit.ly/1AP7sjg) ** At least 21 of Ontario's 75 school boards ignored the public sector wage freeze in 2013 and gave pay increases to their directors of education, according to figures compiled from the sunshine list of public sector workers paid over C$100,000 a year. (http://bit.ly/1u5LmUT) ** Canadian oil sands giant Suncor Energy Inc said Tuesday it is axing 1,000 jobs and C$1-billion in capital spending in response to crashing oil prices. (http://bit.ly/1sxiyZN) Hong Kong SOUTH CHINA MORNING POST -- Two-thirds of young Hongkongers do not want to work across the border in China as many have doubts over the mainland's quality of life and rule of law, a survey has found. (http://bit.ly/1yhfznU) -- Chief Executive Leung Chun-ying claimed on Monday that there was significant information indicating that foreign powers were behind the organisation of the Occupy Central movement, but he did not provide substantial evidence to support the claim. (http://bit.ly/1xY74PD) THE STANDARD -- Businesswoman Solina Chau Hoi-suen said she will consider running in the election for chief executive in 2017 although her good friend Li Ka-shing said through a spokesman that she was only making a joke. (http://bit.ly/1u2TTNQ) -- Limited supply and higher prices of new homes are drawing more buyers to the secondary market, according to property agents. (http://bit.ly/1wX3hy7) HONG KONG ECONOMIC JOURNAL -- Amid stronger dollar, Hong Kong and other Asian emerging markets are witnessing investing funds continue to flow into U.S. assets but no massive outflows, said Anita Fung, chief executive of HSBC Hong Kong. Britain The Times Dalton Philips, the outgoing boss of WM Morrison owned up to strategic errors in his failed efforts to turn around the supermarket chain's fortunes after being sacked yesterday. (http://thetim.es/1xm8XR9) E.ON has become the first of Britain's Big Six energy firms to cut its household bills following pressure from the chancellor, as the price of oil continues to plummet. (http://thetim.es/1CgYg74) The Guardian UK inflation unexpectedly halved in December to the lowest level on record as the sharp drop in global oil prices fed through to petrol pumps and the supermarket price war cut consumers shopping bills. (http://bit.ly/1svUXIR) The World Bank has warned of the risk of the eurozone sliding into permanent stagnation and urged the European Central Bank to embark on a money-creation programme to boost growth. (http://bit.ly/1IIhHHW) The Telegraph The UK economy is in danger of falling into deflation, the Bank of England's Governor warned as data showed that inflation had fallen to a 14-year low. (http://bit.ly/1AYoldT) The Bank of England has been accused of inconsistency for allowing banks to hide their reliance on financial life support if they run into trouble. Fitch Ratings said the Bank's decision to waive rules forcing struggling banks to disclose how they are being propped up by emergency liquidity assistance (ELA) could disadvantage investors and see them withdraw funds from banks.(http://bit.ly/1u35ffe) Sky News The Office for National Statistics (ONS) measured consumer price inflation (CPI) at 0.5 percent in December - its joint lowest level on record - slowing from a rate of 1 percent in the previous month. (http://bit.ly/1wWUD2q) Shantex, a Chinese manufacturer and exporter of textile accessories, is among a pack of potential bidders for Phase Eight, which has been put up for sale by its private equity backers. (http://bit.ly/1z75dtF) The Independent J Sainsbury Plc's has announced it will cut 500 jobs - in a move that comes as part of the latest round of money-saving measures in the supermarket industry. (http://ind.pn/1Ce14lp) Bakery chain Greggs Plc has beaten profit forecasts for the second time in a month following "very strong" Christmas sales - sending shares up more than 8 percent to a record high. (http://ind.pn/14vA2uj) Fly On The Wall Pre-Market Buzz ECONOMIC REPORTS Domestic economic reports scheduled for today include:Retail sales for December at 8:30--consensus down 0.1%Business inventories for November at 10:00--consensus up 0.3%Beige Book to be released at 14:00 ANALYST RESEARCH Upgrades ARM Holdings (ARMH) upgraded to Market Perform from Underperform at BernsteinArch Capital (ACGL) upgraded to Outperform from Neutral at MacquarieBlackRock (BLK) upgraded to Buy from Neutral at GoldmanCNA Financial (CNA) upgraded to Outperform from Neutral at MacquarieCirrus Logic (CRUS) upgraded to Sector Perform from Underperform at Pacific CrestDTS, Inc. (DTSI) upgraded to Buy from Neutral at B. RileyDuke Realty (DRE) upgraded to Outperform from Market Perform at Wells FargoEndurance Specialty (ENH) upgraded to Outperform from Neutral at MacquarieGameStop (GME) upgraded to Outperform from Underperform at Pacific CrestGarmin (GRMN) upgraded to Sector Perform from Underperform at Pacific CrestMonster Beverage (MNST) upgraded to Outperform from Market Perform at CowenMosaic (MOS) upgraded to Outperform from Market Perform at BMO CapitalOaktree Capital (OAK) upgraded to Outperform from Market Perform at Keefe BruyetteOmega Healthcare (OHI) upgraded to Market Perform from Underperform at Wells FargoPearson (PSO) upgraded to Neutral from Sell at GoldmanPhilips (PHG) upgraded to Neutral from Underperform at Exane BNP ParibasProgressive (PGR) upgraded to Neutral from Underperform at MacquarieRange Resources (RRC) upgraded to Overweight from Equal Weight at BarclaysThe Fresh Market (TFM) upgraded to Overweight from Neutral at JPMorganWisdomTree (WETF) upgraded to Buy from Neutral at Goldman Downgrades ACE Limited (ACE) downgraded to Neutral from Outperform at MacquarieAXIS Capital (AXS) downgraded to Neutral from Outperform at MacquarieAllstate (ALL) downgraded to Underperform from Neutral at MacquarieArgo Group (AGII) downgraded to Underperform from Neutral at MacquarieAspen Insurance (AHL) downgraded to Underperform from Neutral at MacquarieCDW Corporation (CDW) downgraded to Neutral from Buy at GoldmanChesapeake (CHK) downgraded to Underweight from Equal Weight at BarclaysCommerzbank (CRZBY) downgraded to Sell from Neutral at GoldmanContinental Resources (CLR) downgraded to Equal Weight from Overweight at BarclaysCorporate Office Properties (OFC) downgraded to Market Perform at Wells FargoCredit Suisse (CS) downgraded to Neutral from Overweight at HSBCDevon Energy (DVN) downgraded to Equal Weight from Overweight at BarclaysDouglas Emmett (DEI) downgraded to Neutral from Buy at MizuhoF5 Networks (FFIV) downgraded to Equal Weight from Overweight at BarclaysFoot Locker (FL) downgraded to Sell from Neutral at GoldmanFranklin Resources (BEN) downgraded to Neutral from Buy at GoldmanHCP (HCP) downgraded to Market Perform from Outperform at Wells FargoHalcon Resources (HK) downgraded to Underweight from Equal Weight at BarclaysInsulet (PODD) downgraded to Neutral from Buy at Sterne AgeeJPMorgan (JPM) downgraded to Underweight from Neutral at HSBCKB Home (KBH) downgraded to Neutral from Outperform at Credit SuisseKB Home (KBH) downgraded to Neutral from Positive at SusquehannaKosmos (KOS) downgraded to Equal Weight from Overweight at BarclaysMarathon Oil (MRO) downgraded to Equal Weight from Overweight at BarclaysMedley Management (MDLY) downgraded to Market Perform at Keefe BruyetteNavigators (NAVG) downgraded to Underperform from Neutral at MacquarieRSP Permian (RSPP) downgraded to Equal Weight from Overweight at BarclaysRambus (RMBS) downgraded to Neutral from Overweight at JPMorganRealty Income (O) downgraded to Market Perform from Outperform at Wells FargoRed Hat (RHT) downgraded to Sell from Neutral at GoldmanResolute Energy (REN) downgraded to Underweight from Equal Weight at BarclaysSandRidge Energy (SD) downgraded to Underweight from Equal Weight at BarclaysTech Data (TECD) downgraded to Sell from Neutral at GoldmanTravelers (TRV) downgraded to Underperform from Neutral at MacquarieTrueCar (TRUE) downgraded to Market Perform from Outperform at CowenValspar (VAL) downgraded to Neutral from Outperform at RW BairdVerizon (VZ) downgraded to Hold from Buy at Evercore ISIViacom (VIAB) downgraded to Sell from Buy at CitigroupW. R. Berkley (WRB) downgraded to Underperform from Neutral at MacquarieWaddell & Reed (WDR) downgraded to Neutral from Buy at GoldmanWhiting Petroleum (WLL) downgraded to Equal Weight from Overweight at BarclaysXilinx (XLNX) downgraded to Sector Perform from Outperform at Pacific Crest COMPANY NEWS Ocwen Financial (OCN) said that it is fully cooperating with the California Department of Business Oversight to resolve an administrative action dated October 3Datawatch (DWCH) announced that it will reduce its sales representatives by 20% and forecast $800,000 in charges associated with that reductionGameStop (GME) reported total holiday SSS down 3.1%, forecast Q4 SSS down 2.5% to down 1% and FY14 SSS up 3%-4%Mohawk (MHK) said it would acquire IVC Group for $1.2BJetBlue (JBLU) reported preliminary December traffic up 5.6% EARNINGSCompanies that beat consensus earnings expectations last night and today include:Linear Technology (LLTC), Progress Software (PRGS) Companies that matched consensus earnings expectations include:CSX (CSX), Nord Anglia (NORD), DragonWave (DRWI) Stryker (SYK) sees Q4 adjusted EPS $1.43-$1.45, consensus $1.46, sees FY14 EPS $4.72-$4.74, consensus $4.75, sees FY15 EPS negatively impacted by 20cShire (SHPG) targets $10B in organic product sales by 2020GameStop (GME) backs Q4 EPS view of $2.08-$2.24, consensus $2.16, backs FY14 EPS view of $3.40-$3.55, consensus $3.49CSX (CSX) still sees double-digit EPS growth in 2015Fluidigm (FLDM) sees Q4 revenue approximately $33.4M, consensus $33.33M, sees FY14 revenue approximately $116.4M, consensus $116.27M, sees FY15 revenue $142M-$149M, consensus $149.02M NEWSPAPERS/WEBSITES Tesla (TSLA) CEO Musk says Q4 sales in China fell significantly, WSJ reportsRBS (RBS) has shortlisted Sarasin, DBS consortium for Coutts Intl sale, Reuters reportsCaesar's (CZR) unit expected to file own Chapter 11 bankruptcy petition, WSJ reportsApple (AAPL) sues Ericsson (ERIC) over patent royalty rates, Bloomberg reports SYNDICATE Barracuda Networks (CUDA) files to sell 5.49M shares for holdersCorpBanca (BCA) files automatic mixed securities shelfHudson Pacific (HPP) 11M share Secondary priced at $31.75New Media (NEWM) files to sell 7M shares of common stock