(Recode.net) Samsung in Talks to Launch Apple Pay Competitor

Samsung has discussed a deal with a payments startup that would help the smartphone maker unveil a wireless mobile payments system in 2015 to rival Apple, according to multiple sources.

The technology would allow people with certain Samsung phones to pay in the vast majority of brick and mortar stores by waving their phones instead of swiping with a credit card or cash.

It is not yet clear if Samsung has reached a deal with the startup, Burlington, Massachusetts-based LoopPay. One source said the deal could still fall apart. A prototype of the payments system working on a Samsung phone has been created, the other source said.

A Samsung spokesman and LoopPay CEO Will Graylin declined to comment.

The talks between Samsung and LoopPay come as the idea of paying for goods in stores using a phone was rekindled in the U.S. thanks to the launch of Apple Pay. In September, Apple unveiled its payments system, which lets owners of the newest iPhones pay for items in stores by placing their phone in close proximity to checkout equipment.

Apple Pay users complete the purchase through an authentication process that involves pressing one’s finger against the fingerprint identification sensor built into the phone’s Home button. Samsung’s latest Galaxy phone also includes fingerprint identification technology, which would likely be incorporated into the new payments system, sources said. The technology can currently be used in conjunction with PayPal’s app to pay with a phone at stores that accept PayPal. Samsung could be interested in creating its own payments system because it believes such a technology will become table stakes in its battle with Apple.

For LoopPay, a Samsung licensing agreement would go a long way to giving its technology the mainstream credibility it so far lacks. LoopPay’s technology can wirelessly transmit the same information stored on a debit or credit card’s magnetic stripe to a store’s checkout equipment without swiping a card. The company has embedded the technology, which it calls magnetic secure transmission, into a few hardware products it sells directly to consumers: a fob, as well as a LoopPay digital payment card that can be used on its own or while secured in a special LoopPay smartphone case. To complete a purchase, LoopPay users tap any of these devices near the spot on a store’s credit card terminal where a card is usually swiped.

Since the technology mimics a card swipe, it works in far more locations than Apple Pay or Google Wallet, which require a store to upgrade to equipment that includes a technology called near field communication, or NFC. When Re/code’s Walt Mossberg reviewed LoopPay earlier this year, it worked at 10 of the 13 stores he visited.

Graylin, LoopPay’s CEO, told Re/code earlier this month that his company’s technology would be embedded into a mainstream smartphone in 2015 that would have “massive penetration.” He declined to name the phone maker then, and declined again when asked about the Samsung discussions.

He also said the partnership with the unspecified phone maker would allow payment information to be transmitted to the merchant via NFC technology in addition to via LoopPay’s traditional magnetic stripe-mimicking technology. Users would not have to open up an app to transmit their payment, he added.

The inclusion of NFC could be important to LoopPay’s future as retail stores begin to update their checkout equipment to accept a new type of payment card that is inserted into a card reader instead of swiped. This upgraded equipment also often includes NFC technology. Merchants who install this equipment will still be able to accept magnetic stripe cards, but swiping is expected to be phased out over time as card issuers and merchants alike begin to favor the new chip-embedded cards that are already common in Europe and less susceptible to cloning.

Graylin said his company has been in discussions with financial services companies such as Visa, which is an investor in LoopPay, about finding a more secure way to pass payment data from one of its devices, or a phone, to a store’s checkout system. LoopPay hopes to use a system known as tokenization, which substitutes a shopper’s card information with a unique placeholder, to accomplish this. The token is later matched up with a specific credit card account by a card network or bank. A merchant never receives or stores the actual payment information. Apple Pay utilizes tokenization when passing information from a new iPhone to a store’s checkout system.

>>> Brazil Central Bank Gov Tombini: Domestic economy is gradually recovering; c

Brazil Central Bank Gov Tombini: Domestic economy is gradually recovering; consumption to expand slower compared to prior years  - comments from Brazil Senate
- US economy is recovering while other facing headwinds- Faster global growth coupled with weaker BRL currency (Real) should help exports
- Brazil unemployment is at low levels
- Foreign Direct Investment (FDI) continues to flow at significant rate; external sector has more favorable outlook in 2015
- Working to bring CPI back to 4.5% target; 12-month inflation tends to remain elevated

>>> US Gapping down

Gapping down
In reaction to disappointing earnings/guidance: HYGS -9.8%, NAV -4.4%, KO -1.1%, PAY -0.9%, WHR -0.8%, ELY -0.6%

Select Russia related names showing weakness: CTCM -12.1%, MBT -7.9%, YNDX -6.6%, VIP -5.9%, RSX -4.8%

Select oil/gas related names showing early weakness: LINE -1.3%, NOV -1.3%, COP -1.3%, OXY -1.2%, HAL -1.1%, SLB -1%, ESV -0.8%, XOM -0.5%

Other news: CYCC -47.3% (determined that based on available interim data, it would be unlikely for the study to reach statistically significant improvement in survival ), FRO -13.9% (entered into a private agreement to exchange $22,5 mln of the outstanding principal amount of the Company's 4.5% Convertible Bond Issue 2010/2015), AXAS -8.2% (provided Q4 and FY15 production guidance; co reduced 2015 drilling budget to ~$54 mln from $200 mln due to current commodity price weakness), LPI -6% (announces 2015 capital budget of $525 mln), RDY -5.1% (announces the launch of valganciclovir tablets), WAVX -3.6% (elected David Cote Chairman of the Board), CLF -2.6% (still checking), TSLA -1.3% (still checking), CHK -1.3% (closed on a new five-year, $4 bln senior unsecured revolving credit facility), CELG -1.2% (still checking)

Analyst comments: BAS -3% (downgraded to Sell from Hold at Wunderlich), SFLY -2.6% (downgraded to Neutral from Buy at Goldman), OAS -1.9% (downgraded to Hold from Buy at Wunderlich), MSFT -1.3% (downgraded to Underperform from Neutral at BofA/Merrill), TWTR -0.5% (target lowered to $45 from $55, maintain Buy at Evercore ISI)

>>> US Gapping up

Gapping up
In reaction to strong earnings/guidance: WG +1.7%, FCEL +1.3%, RCI +1.2%, MMM +1.1%

M&A news: TLM +49% (Repsol (REPYY) to acquire Talisman Energy for $8.00 per common share in all-cash transaction), IHG +1.1% (agreed to acquire Kimpton Hotels & Restaurants for $430 mln in cash)

Select metals/mining stocks trading higher: VALE +4.7%, IAG +4.3%, GG +3.9%, KGC +3.7%, GDX +3.5%, SLW +3.4%, RIO +2.9%, ABX +2.8%, HL +2.8%, NEM +2.6%, GLD +1.6%, MT +1.6%, SLV +1.2%, BHP +1.2%

Other news: BLRX +19.6% ( announced that it has entered into a multi-year strategic collaboration agreement with Novartis Pharma (NVS)), STRI +16.5% (announced closing of sale of controlling interest to Zhenfa Energy Group; declared special dividend of $0.85 per share; increased size of Board of Directors), LADR +10.7% (announced that it is commencing the steps necessary to elect Real Estate Investment Trust status with an expected effective date of January 1, 2015), PRTA +9% (announced that the FDA granted Fast Track designation to NEOD001, a novel monoclonal antibody for the potential treatment of AL amyloidosis), AUY +7.4% (announced 'significant' new discoveries at Chapada and El Penon; discoveries improve operational outlook), RSH +5.1% (entered into an agreement for advisory and interim management services with FTI Consulting), IMN +4.7% (Clinton Group intends to nominate three candidates for the Imation Board of Directors), TS +4.1% (still checking), SNE +3.1% (issues press release on measure taken surrounding cyber attacks), PKI +1.4% (FDA approved marketing of the EnLite Neonatal TREC Kit to help detect Severe Combined Immunodeficiency), BA +1.2% (increased share repurchase authorization to $12 bln and raised dividend by 25%).

Analyst comments: SPWR +1.6% (upgraded to Overweight from Equal-Weight at Morgan Stanley), SAVE +1.3% (upgraded to Outperform from Mkt Perform at Raymond James), RAD +1.2% (upgraded to Buy from Neutral at UBS), GRUB +0.8% (upgraded to Buy from Neutral at Goldman), FBC +0.6% (upgraded to Outperform from Mkt Perform at Keefe Bruyette), RXN +0.5% (initiated with a Buy at KeyBanc Capital Mkts)

>>> 3M Affirms long-term sales and earnings growth objectives, sees FY15 EPS in-

3M Affirms long-term sales and earnings growth objectives, sees FY15 EPS in-line with consensus; approves 20% increase in Q1 dividend

Co will speak to investors and analysts at the 2015 outlook meeting in New York City.
  • The company is on track to deliver its long-term financial targets, organic growth remains strong, and productivity is improving margins in 2014 and 2015. Three key strategic levers continue to drive the company forward: portfolio management, investing in innovation and business transformation. These levers, combined with more aggressive capital deployment, will drive enhanced value creation.
3M will reiterate its 2013-17 financial objectives:
  • Grow earnings per share 9 to 11% per year, on average
  • Grow organic sales 4 to 6% per year, on average
  • Achieve return on invested capital of approximately 20%
  • Convert approximately 100% of net income to free cash flow
FY15
Co issues in-line guidance for FY15 (Dec), sees EPS of $8.00-8.30 vs. $8.20 Capital IQ Consensus Estimate.
  • The company expects that free cash flow conversion will be in the range of 90 to 100%.

(BFW) China Said to Signal Lifting of Ban on GMO Corn Variety

--> SYNN could move on that

China Said to Signal Lifting of Ban on GMO Corn Variety
2014-12-16 11:06:43.783 GMT


By Bloomberg News
(Bloomberg) -- China govt told traders and officials that
Ministry of Agriculture approved lifting a ban on imports of MIR
162 corn from U.S., people familiar with the matter say.
* Ban covered genetically modified corn variety created by
Syngenta AG, according to the people, who ask not to be
identified because the information hasn’t been made public
* NOTE: China’s corn imports this year fell short of forecasts
after the country started blocking U.S. shipments containing
MIR 162 in 2013
* NOTE: Talks of U.S.-China Joint Commission on Commerce and
Trade start today in Chicago
* NOTE: Agricultural quarantine and inspection will be a
priority at the meeting, Shen Danyang, spokesman at the
Ministry of Commerce, says today in a press briefing
* China’s agriculture ministry doesn’t immediately respond to
faxed request for comment; U.S. embassy spokesman doesn’t
return e-mail seeking comment


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