Deutsche Bank AG (NYSE: DB) has issued Buy recommendation for Kroger Co. (NYSE: KR) with a price target of $26.

Kroger is set to report its Q3 earnings on December 8 and Deutsche Bank expects Q3 EPS to be $0.35 (-8.7% y/y). It also noted that Kroger faces significant headwinds from rising food deflation, competitive environment and a cautious consumer. However, given its investment-grade balance sheet, solid market share and continued investments, DB believes that Kroger is well-positioned to emerge from current environment.

Deutsche Bank AG (NYSE: DB) noted that its November Broadline Index was up 0.6%, compared to its estimate of 1.7% and consensus estimate of 2.4%. DB’s top picks were Dillard’s Inc. (NYSE: DDS), Nordstrom, Inc. (NYSE: JWN), Saks Incorporated (NYSE: SKS), J.C. Penney Company, Inc. (NYSE: JCP) and Kohl's Corporation (NYSE: KSS).

According to Deutsche Bank, Target Corporation (NYSE: TGT) and Macy's, Inc. (NYSE: M) sales leading up to Thanksgiving were weaker before showing strength over Black Friday weekend. DB noted that Kohl’s (+3.3%) and Nordstrom (+2.2%) were the clear winners coming in ahead of plan and consensus and were the only department stores to post positive comps.

• Treasury has Citi locked in TARP. With Bank of America (BAC) exiting TARP, Citigroup (C) is getting restless, but sources say the Treasury's refusal to sell its 34% stake in the bank is stopping Citi from selling shares to repay the $20B it still owes, because investors may be reluctant to buy shares if a Treasury sale could drive down the price. Executives have been trying to convince the Treasury to move for three months; it's currently carrying a paper gain of $6B on a $25B stake. In a report, CreditSights said Citi could repay the $20B by selling $10B of common stock and $10B or more of junior debt securities. Even if the Treasury does sells its shares, and the bank paid off the remaining $20B, it could still be subject to compensation oversight due to $301B in government asset guarantees.
• Bernanke defends Fed leadership. Fed Chairman Ben Bernanke defended his leadership of the Fed and urged the Senate Banking Committee to preserve the central bank's independence during his reconfirmation hearing (webcast, testimony). Next week, the House could vote on legislation that could put the Fed's monetary policy decision-making under a congressional watchdog agency. Bernanke said the Fed's credibility "depends on the market's perception that we are independent in making monetary policy decisions." On other key topics, he said he did not see any asset bubbles emerging in the U.S.
• Cisco falls short, takes Tandberg anyway. Cisco Systems (CSCO) is pressing ahead to buy Norway's Tandberg ASA for 19B Norwegian crown ($3.4B), despite falling short of its self-imposed 90% threshold for acceptances; 89% of shareholders said yes to the offer. Cisco, which raised its bid by 10% after shareholders rejected its first offer, wants to create the world's leader in video conferencing equipment. Cisco said it may try to squeeze above the 90% level - which would force a sale by the holdouts - through open market purchases. Cisco CEO John Chambers has pegged the total value of collaboration tools at around $34B.
• Recycling TARP for jobs. House Speaker Nancy Pelosi suggested recycling leftover funds from the $700B TARP fund to create jobs and boost some salaries. Pelosi floated the idea at a press conference Thursday, the same day President Obama met with business and labor leaders to examine job-creating options. Banks have now repaid much of what they borrowed, with Bank of America (BAC) the latest to do so on Wednesday after it said it will repay the $45B it borrowed.
• Kraft hastens Cadbury bid. Kraft (KFT) plans to launch its £9.8B ($16.4B) hostile bid for Britain's Cadbury (CBY) on Friday, one business day earlier than the Monday deadline, sources say. Kraft will stick to the same cash and share offer it made in early September, which Cadbury's board spurned. Under U.K. takeover rules, Kraft has until day 46, or the middle of January, to raise its bid for the world's largest confectionery group, while Cadbury will have until day 14 to publish its defense. Hershey (HSY), meanwhile, is thought to be mulling a $17B bid for Cadbury - an offer the U.K. confectioner has indicated it would prefer.
• Goldman on bonuses: give them stock. Suggesting some sensitivity to public wrath over its huge compensation packages, Goldman Sachs (GS) is reportedly weighing plans to hike the equity portion of its pay packages, including awarding all annual bonuses to senior executives, including CEO Lloyd Blankfein, in company stock. The firm has been meeting with major investors to explain why it deserves the record pay-packs it's awarding itself after accepting TARP funds. Goldman's board appears hesitant to grant shareholders a non-binding, advisory vote on pay policy as it could lead to investors pushing for a bigger say on other policies.
• Hearst to go digital. Publisher Hearst Corp. plans to compete head-on with Amazon.com's (AMZN) Kindle store with a new digital service called Skiff, which will sell digital versions of newspapers and magazines for electronic readers and other devices. Hearst says Skiff publications will more closely resemble their print counterparts, including advertising, which could make them more lucrative for media companies. "The platforms and devices that other people are building are not really appropriate for newspapers and magazines," Hearst Interactive president Kenneth Bronfin said. "We are going to create an entity by publishers, for publishers."
• Whitacre begins GM shakeout. Interim GM Chairman Ed Whitacre will announce new responsibilities for Vice Chairman Bob Lutz as part of an overhaul of the management team this morning, sources say. Whitacre is building a team to run the company until a replacement is hired, in a push to make GM more nimble and to hold employees accountable.
• AIG hopes to raise up to $10B in AIA IPO. AIG (AIG) selected Hong Kong's stock exchange to list its Asian life insurance unit, AIA Group, an apparent sign the troubled insurer will go ahead with an IPO in the hopes of raising up to $10B. Preparations for the IPO had stalled since Robert Benmosche took the helm in August; Benmosche has repeatedly said AIG is in no hurry to sell assets at unfavorable prices. "The planned listing is in the best interests of policyholders, distribution partners, AIG shareholders and U.S. taxpayers," Benmosche said. "AIA's roots are in Asia, and a listing in Hong Kong is a natural choice." AIA left the date open.
• Banks back CME CDS clearing house. CME Group (CME), the world's dominant derivatives exchange, said it will have a clearing house for the $26T credit default swap market up and running by December 15, after securing commitments from 8 of the largest credit derivative dealers: Barclays Capital (BCS), Citigroup (C), Credit Suisse , Deutsche Bank (DB), Goldman (GS), JPMorgan (JPM), Morgan Stanley (MS) and UBS (UBS).
  The launch coincides with legislative efforts to put the $450T derivative markets on a tighter regulatory leash and elevate the role of central clearing houses to reduce risks posed by the default of a major swaps dealer, and the web of exposure the contracts create among large financial companies.
• Google gets into the DNS business. Google (GOOG) unveiled Google Public DNS, a new service that will allow web surfers to use Google as their DNS (Domain Name System) provider. DNS is what translates understandable domain names into the binary identifiers network routers require. The benefits to users are a theoretically faster and more stable browsing experience, and more security against malware type sites. The benefit to Google appears to be a huge store of data to mine, and potential new revenue streams. The service competes directly with OpenDNS, backed by private-equity firms Sequoia and Greylock.
• GM to expand in India. As it struggles to shed brands and find a new CEO, General Motors plans to expand its presence in the lucrative Indian market through a JV with China's SAIC Motor; sources say a deal will be announced Friday. Together, the two companies, which already make and sell vehicles in China, plan to produce passenger vehicles already made by GM in India, including the Chevrolet Spark. The expected move is significant because it provides GM, which already has a foothold in India, with additional resources through the cash-rich, state-owned Chinese auto maker.
• Banks may get capital reprieve. U.S. banks such as Citigroup (C) and JPMorgan (JPM) may get much-sought breathing room to phase in capital requirements, rather than be forced to raise capital immediately when new rules take effect next month, according to FDIC chief Sheila Bair. The rule, which the Financial Accounting Standards Board approved in May, eliminates off-balance-sheet trusts known as Qualifying Special Purpose Entities and will force banks to move billions of dollars of assets and liabilities onto their books. Banks have argued the rule would force them to cut financing for securitizations that would directly impact consumers through credit-card lending, residential mortgages and student loans. "Giving some breathing room in terms of when they can transition in is acceptable to us," Bair said in an interview yesterday.
• Delay for GE, Comcast marriage? While GE (GE) and Comcast (CMCSA) prepare for their nuptials, industry sources warn it may take up to a year to tie the knot because they first must pass a potentially tough regulatory review. The process could force Comcast to give cable and satellite competitors like Verizon (VZ) and DISH Network (DISH) access to NBCU's TV shows and movies. Herb Kohl, chair of the Senate's antitrust and competition policy subcommittee, called on regulators to "ensure that all content providers are treated fairly on the Comcast platform." Experts expect the deal will ultimately get the green light.
• Biogen ups offer for Facet. Aiming to force the hand of Facet Biotech (FACT), Biogen Idec (BIIB) - the world's largest maker of MS drugs - said it would pay $493M, or $17.50/share for the company, and that this was its "best and final" offer. The bid represents a 98% premium over the company's closing share price of $8.82 the day before the bid was initially announced in September. Facet and Biogen have been jointly developing daclizumab for MS and volociximab for cancer since 2005. Biogen CEO James Mullen took the bid directly to shareholders after the board rebuffed him previously. He warned failure to complete a transaction could cause Facet shares to "decline significantly toward pre-offer levels." The offer expires Dec. 16.
• Service sector shrinks. Signs of recovery in the service sector continued to lag manufacturing, as ISM's index of non- manufacturing businesses unexpectedly fell to a reading of 48.7 from 50.6 in October and short of consensus estimates of 51.5 (below 50 indicates contraction). Service businesses make up almost 90% of the U.S. economy. On Friday, the Labor Department is expected to report that the U.S. economy lost 125,000 jobs in November, following a 190,000 decline the month earlier, though some economists say the drop in be as low as 50,000, or even a small rise. The jobless rate probably stayed at 10.2%, the highest level in 26 years.
• Wealthy may forfeit tax exemption. America's wealthy will not be able to benefit from a tax exemption that was slated for next year, and will continue to be subject to a tax rate as high as 45%. The House voted 225-200 to indefinitely extend the current tax, to prevent the federal estate tax from expiring on Dec. 31, and to permanently exempt couples' fortunes of up to $7M. The estate tax was slated to disappear in 2010 and be reinstated in 2011 at the previous higher top rate of 55% for estates valued at more than $1M. The measure now goes to the Senate, which plans to consider its own version.
• Luxury homebuilder loss widens. Luxury homebuilder Toll Brothers said its Q4 loss widened to $111.4M from a year-earlier loss of $78.8M, blaming rising unemployment and other factors. Even so, it said conditions were brightening somewhat as the cancellation rate declined and contract signings picked up. Last month, Toll said new contracts jumped 42% for the latest quarter. Pulte Homes (PHM) and D.R. Horton (DHI), the nation's No. 1 and No. 2 home builders, also said orders jumped last month, even though all have been hurt by land-related charges as land and home values have fallen. Most homebuilders remain under pressure due to rising foreclosures, unemployment and inventory levels.

Earnings: Fri. Before Open

• Big Lots (BIG): Q3 EPS of $0.27 beats by $0.09. Revenue of $1.04B (+1.3%) in-line. Sees 2010 EPS of $2.15-2.20 vs. $2.01 consensus. Authorizes $150M share buyback. (PR)

Earnings: Thur. After Close

• Marvell Technology Group (MRVL): Q3 EPS of $0.35 beats by $0.08. Revenue of $803M (+2%) vs. $770M. Shares +0.9% AH. (PR)
• Novell (NOVL): FQ4 EPS of $0.11 beats by $0.04. Revenue of $216M (-12%) in-line. Sees FQ1 revenue of $200M-210M vs. $214M. Shares -3.4% AH. (PR)
• Smith & Wesson (SWHC): FQ2 EPS of $0.10 beats by $0.01. Revenue of $109M (+49%) vs. $105M. Sees FQ3 revenue of $90M-95M vs. $105M. Shares -9.9% AH. (PR)

Today's Markets

Shanghai moved higher in an otherwise mixed day in Asia. Europe stocks are lower at midday, reflecting Thursday's late-day selloff in the U.S. Futures are flat ahead of the much-awaited payroll data.

• BofA's $45B TARP exit. Less than a year after two multibillion-dollar government bailouts, a resurgent Bank of America (BAC) said it would repay all $45B of its TARP loans, underscoring the banking industry's swift recovery from the gravest financial crisis since the Depression. BofA plans to use $26.2B in "excess liquidity," and raise another $18.8B by selling "common equivalent securities" which will convert to common shares; the repayment will save it $3.6B/year in dividend costs. The bank also agreed to boost its liquidity by $4B through asset sales, and save another $1.7B by issuing restricted shares in lieu of compensation. Post payback, BofA's Tier 1 capital ratio will be 11% and its Tier 1 Common capital ratio will be 8.5%. Removing the TARP stigma should help BofA in its quest to find a new CEO. The deal was largely engineered by Greg Curl, chief risk officer and a candidate to replace Lewis. BAC +4.4% premarket.
• Comcast and GE tie NBCU knot. GE (GE) and Comcast (CMCSA) made it official, announcing a $30B agreement to shift control of NBC Universal from GE to the Comcast. Details were as expected: Comcast will control 51% of the new entity, for which it will pay $6B in cash and throw in its content assets. GE will cough up NBCU along with its $9B in debt, and will buy out Vivendi's (VIVDY.PK) 20% stake in NBCU for $5.8B. Jeff Zucker, who will lead the new NBCU, commented: "Combining the assets of NBCU, ranging from our suite of cable properties and two broadcast networks to a legendary film studio and global theme park business, with the content assets and resources of Comcast, will enable us to continue to thrive in an ever-changing media landscape." In this morning's New York Times, Andrew Ross Sorkin and Tim Arango tell the tale of Comcast's (CMCSA) closelipped courtship of NBC Universal (GE).
• Goldman: Because we're better. Goldman Sachs (GS) has begun meeting with key shareholders in an effort to ward off an investor backlash over its record compensation pool, a first for the secretive investment bank. According to a senior executive, shareholder response to shrinking the bank's compensation has been "almost uniformly no," and spokesman Lucas van Praag says the company's "puzzled" at the suggestion shareholders are looking for concessions. In a document called Goldman Sachs Compensation Practices (.pdf), Goldman notes it has "substantially outperformed peers from a shareholder value creation perspective," adding that it has "still been able to pay out more on average per employee" while generating "the highest average EPS growth rate."
• American's $1.1B offer to JAL tops Delta. American Airlines (AMR), members of its Oneworld alliance, and private-equity firm TPG offered to invest up to $1.1B in troubled Japan Airlines, a deal they argued is "vastly superior" to a $1B offer from Delta Air Lines (DAL) and its SkyTeam alliance. JAL is already a member of Oneworld, and American said staying the course would result in a substantial increase in revenue in coming years, which makes its offer worth an effective $1.8B, while a JAL-Delta tie-up would face severe regulatory opposition “because of the stranglehold this combination would hold on Japan-USA travel." Delta president Edward Bastian told reporters SkyTeam will consider boosting its offer. Despite deep losses and $15B in debt, JAL remains Japan's top carrier.
• Rechanneling TARP. With the financial industry stabilized, and many banks having or about to repay the government's aid with interest, the government is in talks with lawmakers to use unspent TARP money to offset jobs spending and aid the long-term unemployed. According to the Treasury, the $700B bailout fund created in October 2008 has a balance exceeding $200B, not including the $45B BofA (BAC) said Wednesday it will repay. In testimony Wednesday, Treasury Secretary Tim Geithner warned against shuttering the program given continued weakness in some markets, but said much of the money would not be needed: "I think we are at the point now we're going to be able to return very, very substantial amounts of money to address the critical economic needs, long-term fiscal needs, of this country."
• Senator questions AIG debt swap. Sen. Chuck Grassley challenged the Fed's decision to exchange AIG's (AIG) debt for shares, asking the Treasury and New York Fed to explain how taxpayers get a better deal from holding equity instead of debt. AIG on Tuesday sealed a pact with the New York Fed to slash its debt under a credit facility by more than half, to $17B, a move Grassley said in a letter puts "billions of dollars in taxpayer money in jeopardy." Grassley also noted that AIG recently failed to make dividend payments, giving the Treasury rights to name at least two members to its board, and asked about the status of its efforts to find candidates.
• CME on verge of CDS clearing deal. Sources say CME Group (CME) is near a breakthrough deal with some of the world's biggest banks to clear credit default swaps, capping more than a year of negotiations. The CME has held talks with the world's main OTC dealers - Barclays Capital (BCS), Citigroup (C), Goldman Sachs (GS), JP Morgan (JPM), Deutsche Bank (DB), Morgan Stanley (MS), UBS (UBS) and Credit Suisse (CS) - though it remains unclear how many of them are ready to ink the proposed deal, which would see the CME begin clearing CDS starting December 15.
• Astra to pay up to $1.24B for Targacept's antidepressant. AstraZeneca (AZ) said it has bought rights to Targacept's (TRGT) experimental antidepressant (TC-5214) in a deal worth up to $1.24B, boosting its pipeline and slapping a big endorsement on its U.S. biotech partner's drug. AstraZeneca badly needs new medicines to replace those about to lose their patents, like heartburn treatment Nexium and schizophrenia drug Seroquel. Targacept will receive $200M upfront, pending regulatory approval, $540M for reaching first commercial sale, and another $500M for hitting sales milestones.
• BoE mulls dealing in corporate debt. The Bank of England said it may boost liquidity in corporate-bond markets by acting as a dealer. While conditions in the primary U.K. corporate-bond market have improved, trading conditions in secondary markets "continue to be somewhat restricted," the Bank said. "The changes proposed today are aimed at improving secondary market liquidity by the Fund operating as a seller, as well as a buyer, of bonds."
• Nov. jobs gain? ADP's pre-NFP employment report (.pdf) counted 169K private-sector job losses in November (vs. -150K expected, -203K in October), the eighth straight month during which the decline in employment moderated. "Although overall economic activity is stabilizing, employment usually trails economic activity, so it is likely to decline for at least a few more months," ADP said. Consensus for tomorrow's nonfarm payroll data, which includes government hiring, is for a decline of 125,000, but economists say the drop in jobs could be as low as 50,000, or even a small rise, due to the year-on-year comparison with last November's 610,000, which included the Lehman collapse.

Earnings: Before Open

• A-Power Energy (APWR): Q3 EPS of $0.28 misses by $0.03. Revenue of $96.7M (+13.2%) vs. $113.4M. (PR)
• Toll Brothers (TOL): FQ4 EPS of -$0.68 misses by $0.22. Revenue of $487M (-29.6%) vs. $450M. Net signed contracts +42% in units to 765 and +62% in dollars to $431M. (PR)

Earnings: Wed. After Close

• Aeropostale (ARO): Q3 EPS of $0.92 beats by $0.01. Revenue of $568M (+18%) vs. $566M. Same-store sales up 7%. Shares -8% AH. (PR)
• Collective Brands (PSS): Q3 EPS of $0.61 beats by $0.12. Revenue of $867M (+1%) vs. $848M. Same-store sales up 3.1%. Shares +7.2% AH. (PR)
• Synopsys (SNPS): FQ4 EPS of $0.33 beats by $0.01. Revenue of $338M (-4%) vs. $339M. Sees FQ1 EPS of $0.38-0.40 vs. $0.41, and full-year EPS of $1.52-1.62 vs. $1.68. Shares -7.8% AH. (PR)

Today's Markets

Tokyo soared 3.8% Thursday, leading Asia gains. Europe stocks and U.S. futures are slightly higher.

The FSB (Financial Stability Board) of the G-20 has created a list of 24 banks and 6 insurance companies that pose significant risk to world financial systems and require special oversight. The list has not been officially released, but 30 names have been mentioned at ft.com and a list has been published by the editor at Wall Street Pit.

Banks

Thirty giant financial institutions were selected by the FSB for cross-border systemic-risk oversight and will be asked to write "living wills" that outline wind-down plans in the aftermath of a crisis.

North America: Goldman Sachs (GS), JPMorgan (JPM), Bank of America (BAC), Royal Bank Of Canada (RY).

• UAE moves to quiet fears. In an apparent effort to calm global markets, the central bank of the United Arab Emirates said it will give affected banks a liquidity line of unspecified size after Dubai shocked markets on Wednesday with news of a standstill on some $60B of debt for Dubai World. Reports suggest European banks could be on the hook for some $40B. The central bank said it was standing behind local and international banks in the U.A.E. with a special additional liquidity facility linked to their current accounts at the central bank, at the rate of 50 bps above the 3-month Eibor. It said nothing about helping Dubai, but stated that the U.A.E. banking system "is more sound and solid than a year ago." The lifeline news helped sooth some nerves after big losses late last week, sending the MSCI Emerging Markets Index to its biggest gain in two weeks on Monday.
• Thirty financials on systemic risk list. Thirty giant financial institutions were selected by the FSB for cross-border systemic-risk oversight, and will be asked to write "living wills" that outline wind-down plans in the aftermath of a crisis. North America: Goldman Sachs (GS), JPMorgan (JPM), Bank of America (BAC), Royal Bank Of Canada (RY). U.K.: HSBC (HBC), Barclays (BCS), Royal Bank of Scotland (RBS), Standard Chartered. Europe: UBS (UBS), Credit Suisse (CS), Societe Generale, BNP Paribas, Santander (STD), BBVA (BFR), Unicredit, Banca Intesa, Deutsche Bank (DB), ING Group (ING). Japan: Mizuho (MFG), Sumitomo Mitsui, Nomura (NMR), Mitsubishi UFJ Financial Group (MTU). Insurers: AXA (AXA), Aegon (AEG), Allianz (AZ), Aviva, Zurich, Swiss Re.
• Black Friday: more people spent less. U.S. consumers flocked to buy cheap laptop computers and other specials the day after Thanksgiving, but heavy discounts meant that major retailers hauled in just 0.5% more in sales this period than a year earlier ($41.2B vs. $41B), even as the number of shoppers at stores and on web sites rose to 195M from 172M a year earlier. Recession-pressed shoppers spent an average $343.31, less than $372.57 a year ago. The NRF still expects spending to fall by 1% this season.
• Treasury losing patience with mortgage servicers. On Monday, the Treasury plans to meet with mortgage servicers and press them to act more swiftly in helping borrowers avert foreclosure under a $75B campaign meant to address this problem, sources say. One of its tactics will be to humiliate banks that aren't pulling their weight by naming them publicly. "Some of the firms ought to be embarrassed, and they will be," Treasury's Michael Barr said in a recent interview. The Treasury is also expected to unveil new measures to enhance mortgage servicer transparency and accountability as part of a broader focus on maximizing conversion rates to permanent modifications. BofA (BAC) is thought to be among the worst performers in the program, while Morgan Stanley (MS), Citigroup (C) and JPMorgan (JPM) have been among the better ones.
• Bernanke warns on clipping Fed's wings. In a blunt editorial in Sunday's Washington Post, Fed chairman Ben Bernanke spoke against government meddling to shrink the Fed's role in supervising the U.S. banking system, warning this would "impair the prospects for economic and financial stability in the United States." Some in the Senate have criticized the Fed for lax supervision and introduced legislation this month that would strip bank oversight from the Fed and create a single bank regulator. Senator Bernie Sanders Sunday said he will not vote to reconfirm Ben Bernanke as Fed chairman, saying "he is part of the problem." Bernanke's op-ed comes ahead of his re-nomination hearing this week.
• Sands China IPO starts with whimper. The IPO of Sands China, the world's seventh-largest IPO so far this year, dropped 10% on its first day, as many expected. Shares of the Macau unit of U.S. casino operator Las Vegas Sands (LVS) opened at HK$9.35, vs. their Hong Kong IPO price of HK$10.38. The IPO, which raised $2.5B, came in the middle of the Dubai debt debacle and more generally, a stock market that's been showing signs of fatigue.
• China spurns Europe on yuan. European officials flew back home empty handed over the weekend, having failed to convince the Chinese government to revise controls that shelter the yuan from the dollar's fall and expose the euro region. The euro has surged some 20% versus the U.S. dollar since Feb. 18, making exports less competitive and threatening the region's recovery. ECB President Jean-Claude Trichet admitted at a briefing that no immediate change to China's currency polices is likely. He said Chinese officials confirmed that they will continue to implement currency reforms begun in 2005, when a fixed exchange rate ended.
• IBM to buy safety start-up. IBM (IBM) is expected to announce that it closed on the purchase of database security start-up Guardium for $225M, according to Israeli financial newspaper TheMarker. Guardium, which has some 60 employees and was started as an Israeli firm in 2002, moved to Boston in 2003. The company had raised $21M from venture capital funds such as Ascent Venture Partners, Israel's StageOne Ventures and Veritas, and Cisco Systems (CSCO). Guardium's software lets companies give customers and partners access to their corporate applications, while ensuring that the databases used by those applications remain shielded.
• Iran provokes over nuclear plan. Tensions between Iran and the international community could worsen after the country unveiled plans for a massive expansion of its nuclear program and said it might pull out of the Nuclear Non-Proliferation Treaty. President Mahmoud Ahmadinejad told a cabinet meeting Sunday of plans to build 10 more nuclear facilities for enriching uranium to provide nuclear fuel for energy, but Western officials suspect Iran wants to build an atomic bomb.
• India growth powers ahead. India's GDP grew 7.9% in Q3 vs. last year's same period, shattering analyst expectations of 6.3% as higher domestic demand and strong mining and manufacturing growth helped. India is also likely to upwardly revise its official growth forecast for the fiscal year ending March 31, 2010, according to a news report. The government has forecast growth of 6.5% for the fiscal year.
• Saab has new suitors. Just days after Swedish car maker Koenigsegg reneged on plans to take Saab off General Motor's hands, two new suitors - U.S. investment firms Wyoming-based Merbanco and Renco Group in New York - have indicated an interest. Saab is racing to convince GM to save the company, which has yet to turn a profit after more than 20 years. It may get a needed boost after the Swedish government on Friday said it remains ready to act as the company's guarantor on €400M in loans from the European Investment Bank. Sweden is sending a delegation to Detroit to meet with GM officials early next week. GM's board begins its regular monthly meeting late Monday and could announce a decision on Saab's future as soon as Tuesday.
• Democrats expect green light for healthcare plan. Congress is expected to bless the healthcare reform proposal aimed at expanding medical coverage to millions of uninsured, but not without concessions, leading Democrats have said. The U.S. House of Representatives passed its version of the plan on November 7, and the Senate will be up to bat Monday to begin debate. Democrats have been struggling for consensus over issues such as abortion, a new government-run insurance plan and efforts to rein in costs.

Today's Markets

Asia stocks bounced back Monday with sharp gains across the board. Europe opened higher but has mostly moved into the red, as have stock futures.

The Top 10 German Banks based on Assets held as of Dec, 2008 are listed below:

click to enlarge

(CT) Avoid Regional Domestic Banks – Zacks Industry Rank Analysis