MORNING COFFEE

Google Redirects China Site.  Google (GOOG) has stopped censoring its search engine in China and plans to maintain sales and R&D teams in China. Visitors to Google’s China site are being redirected to their Hong Kong sight saying it's legal to have the Hong Kong service deliver uncensored results in simplified Chinese. The Chinese government says Google has broken its promise and is "totally wrong."

Toshiba Goes Nuclear. Toshiba (TOSBF) confirmed that it may work with Bill Gates and his company TerraPower to develop an advanced nuclear reactor.  The new reactor would be able to operate for up to 100 years without refueling, as opposed to current light-water reactors which must be refueled every few years. The news sent Toshiba shares up +3.6% in Tokyo trading.

Warren Buffett Buys Kahn Ventures. Berkshire Hathaway (BRK.A/BRK.B) has agreed to buy Kahn Ventures Inc, a wholesale distributor of distilled spirits, wine and beer in Georgia and North Carolina.  Buffett said the acquisition will "provide us with a solid platform for potentially acquiring other similar high quality wholesale distributors." Terms of the deal were not disclosed.

Phillips-Van Heusen (PVH): Reported Q4 EPS of $0.61 beating estimates by +$0.02 on revenue of $615 million.

Upgrades

Tiffany & Co (TIF): Jesup & Lamon raised their rating from Hold to Buy and placed a target price of $55.00 on the company.

Paychex (PAYX): Cowen & Co raised their rating from Underperform to Neutral.

Automatic Data (ADP): Cowen & Co raised their rating from Underperform to Neutral.

Baidu.com (BIDU): Kaufman Bros raised their rating from Hold to Buy and raised their target price from $540.00 to $690.00.

Downgrades

AFLAC (AFL): Bernstein lowered their rating from Outperform to Market Perform.

PETsMART (PETM): Janney Mntgmy Scott lowered their rating from Buy to Neutral.

Coverage Initiated

UnitedHealth (UNH): Susquehanna Financial initiated coverage with a Neutral rating.

Caterpillar (CAT): Avondale initiated coverage with a Market Outperform rating and a target price of $70.00

·         Futures: Dow +0.1%. S&P +0.15%. Nasdaq +0.15%. Crude flat at $81.25. Gold +0.1% to $1100.60.

·         Asia: Nikkei-0.5% to 10774. Hang Seng +0.3% to 20988. Shanghai -0.7% to 3053. BSE +0.2% to 17451.

·         Europe: London +0.8% to 5692. Paris +0.6% to 3952. Frankfurt +0.5% to 6017.