2.59k followers • 30 symbols Watchlist by Yahoo Finance
Follow this list to discover and track stocks that have set MACD bearish crosses within the last week. A bearish crossover occurs when the MACD turns down and crosses below the signal line. Our algorithms use 12,26,9 as MACD parameters. This list is generated daily, ranked based on market cap and limited to the top 30 stocks that meet the criteria.
Alibaba Group Holding Limited
The Procter & Gamble Company
Exxon Mobil Corporation
Royal Dutch Shell plc
Royal Dutch Shell plc
Merck & Co., Inc.
Wells Fargo & Company
Fomento Económico Mexicano, S.A.B. de C.V.
HSBC Holdings plc
PetroChina Company Limited
BHP Billiton Limited
Honeywell International Inc.
China Life Insurance Company Limited
General Electric Company
Rio Tinto plc
Booking Holdings Inc.
The Goldman Sachs Group, Inc. PFD A 1/1000
E. I. du Pont de Nemours and Company
The TJX Companies, Inc.
Prudential plc PER SUB 6.50%
Banco Santander, S.A.
Boston Scientific Corporation
Enterprise Products Partners L.P.
Today we are going to look at Boston Scientific Corporation (NYSE:BSX) to see whether it might be an attractive...
(Bloomberg) -- Wells Fargo & Co.’s finance chief was promising analysts they would be kept abreast of the bank’s efforts to resolve scandals when his new boss chimed in.“I just want to be clear, I’m not suggesting here that any of these public issues will be closed this year,” Chief Executive Officer Charlie Scharf said earlier this month. “The time frames will be driven by when we accomplish that work and when the regulators are satisfied by it.”It was a telling moment in Scharf’s first earnings call since taking over a bank mired in revelations about customer abuses. Two years after the company launched an ad campaign called “Re-Established” to announce it was ready to start anew, a dark reality is sinking in: It has a long way to go.“This has dragged on far longer than we would’ve hoped,” Piper Sandler analyst Scott Siefers said in an interview. “This is a cultural issue as much as it is anything else, so I think most of us haven’t seen something of this order or fashion before. It’s new for all parties.”The Office of the Comptroller of the Currency last week announced civil charges against eight former senior executives, including ex-CEO John Stumpf. Stumpf accepted his penalties while five of the others are fighting the accusations, raising the prospect of keeping the firm’s missteps in the news for years.After the OCC unveiled a 100-page complaint laced with previously confidential emails, internal memos and testimony, Scharf pledged Wells Fargo will conduct its own review.The firm has yet to reach settlements with the U.S. Department of Justice and the Securities and Exchange Commission after setting aside more than $3 billion for litigation in the second half of last year. Justice Department staff also scrutinized the actions of individual executives, people familiar with the matter have said. And in its quarterly filings, the bank lists an array of other open-ended probes, investigations and sanctions including a Federal Reserve-imposed growth cap.It’s a strikingly long tail for a scandal that began with the 2016 revelation that employees had opened millions of potentially fake accounts to meet sales goals, possibly overcharging customers by a few million dollars. That unleashed a public and political backlash that has kept Wells Fargo in a harsh light ever since.“There’s this sort of free-floating anger and fury that’s out there in the populace, and anything that sticks its head up that’s a problem that isn’t resolved in the right way, it coalesces,” Davia Temin, founder of crisis consultancy Temin & Co., said in an interview. “That fury is magnificent -- it is stunning in its destructive power.”Mounting political pressure prompted the retirement in March of CEO Tim Sloan, who had replaced Stumpf. Sloan’s exit kicked off a six-month search for an external candidate to “complete the transformation,” as the bank’s chair described it at the time. The board landed on Scharf, who took over in October.In his first months at Wells Fargo, Scharf held a marathon of meetings with executives, asking them about their businesses. The depth and breadth of his reviews hint at wide-ranging changes.Scharf’s priority has been fixing relations with regulators that have taken unprecedented steps against the firm. The targeting of former managers is a divergence from enforcement actions after the 2008 financial crisis, from which Wells Fargo emerged relatively unscathed: Few individuals and no top executives were held accountable.After that crisis, Bank of America Corp. spent most of a decade working through probes and litigation linked to bad mortgages, some inherited through takeovers of Countrywide and Merrill Lynch. Citigroup Inc., which leaned on taxpayers to get through the turmoil, created a special unit to work off soured assets and undesirable businesses.“If you look at Bank of America and Citigroup, they took a minimum of five years to straighten themselves out, and then they took another three or four years to get a program in effect to grow their earnings going forward,” Odeon analyst Dick Bove, who downgraded Wells Fargo to sell from hold last month, said in an interview. “This is no easy task.”To contact the reporter on this story: Hannah Levitt in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Michael J. Moore at email@example.com, Dan Reichl, David ScheerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Oil tumbled to the lowest in more than three months on fears China’s deadly coronavirus will hit demand in a market that already has plentiful supply.Futures plunged more than 3% as China reported an increase in fatalities and infections. While the country extended the Lunar New Year holiday to control the outbreak, more cases have been reported in other parts of the world. Goldman Sachs Group Inc. predicted that global oil demand may fall, but Saudi Arabia said it believes the crisis so far will have a “very limited impact” on consumption.The virus is the latest upheaval for the oil market, which is has been struggling with demand concerns for months. Investors are selling crude and other commodities amid a broad withdrawal from riskier assets and fears the virus will curtail fuel consumption as travel is restricted.“A supply glut of fuel in China would filter through to the rest of the world through exports and on that basis the market is reacting in this defensive manner,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “The Saudis can try to stem the sell-off but while its being driven by the need to mitigate losses that will be difficult to control.”Brent futures lost as much as 3.6% to $58.52 a barrel on the London-based ICE Futures Europe exchange and traded at $58.69 as of 9:34 a.m. local time. The contract slid 6.4% last week, capping the longest run of weekly losses since June. West Texas Intermediate fell as much as 3.8% to $52.15.Hedge funds boosted bullish bets on WTI by 2.8% in the week ended Jan. 21, the most in a month, a day before prices tipped into the worst three-day slump since September.Saudi Energy Minister Prince Abdulaziz bin Salman said the world’s largest oil exporter was monitoring the virus’s impact both on the Chinese economy and the oil market. Yet, he said that the same “extreme pessimism” that’s afflicting the market also occurred in 2003 during the SARS outbreak, “though it did not cause a significant reduction in oil demand.”“The current impact on global markets, including oil and other commodities, is primarily driven by psychological factors and extremely negative expectations adopted by some market participants despite its very limited impact on global oil demand,” the minister said in a statement.See also: Viral China: Behind the Global Race to Contain a Killer BugGlobal oil demand may slip by 260,000 barrels a day this year and could shave almost $3 from the price of a barrel of crude, Goldman Sachs said last week, using the 2003 SARS epidemic as a guide.China extended the Lunar New Year holiday by three days until Feb. 2, while companies in Shanghai have been asked not to start work until at least Feb. 9. There are more than 2,700 confirmed cases of infection in China so far. Canada confirmed its first while the U.S. announced a fifth, as the virus spread to at least 15 countries and territories.\--With assistance from Javier Blas and Saket Sundria.To contact the reporters on this story: Rakteem Katakey in London at firstname.lastname@example.org;Aaron Clark in Tokyo at email@example.comTo contact the editors responsible for this story: James Herron at firstname.lastname@example.org, Rakteem Katakey, Christopher SellFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The world’s largest energy traders enjoyed one of their best ever years in 2019 as pipeline outages, dramatic changes in ship fuel regulations and Middle East conflicts shook up the global oil market.The bonanza extended beyond the independent traders like Vitol Group and Trafigura Group Ltd. to the in-house units of oil giants Royal Dutch Shell Plc, Total SA and BP Plc, which made billions of dollars in profits.“By all accounts, 2019 was among the best years ever for the energy trading industry,” said Marco Dunand, the chief executive of Mercuria Energy Group Ltd., one of the five largest independent oil traders.For the independents, the bumper year all but guarantees a fat bonus season for a group of companies that’s largely owned by their executives and senior staff. For the European oil companies, the trading boom will help Shell, BP and Total to weather a tough year in other parts of their business.In interviews with senior traders and top executives, the consensus is that the industry benefited from a lucky mix of factors in the oil market. Recent investments in trading natural gas, power and liquefied natural gas also started to bear fruit.First, a series of supply outages boosted the premiums that oil refiners pay over the benchmark price for some crudes. Early in 2019, Washington imposed sanctions on Venezuela, disrupting flows. Then, Russian shipments into Europe via the key Druzhba pipeline were halted after oil was tainted with a corrosive pollutant. And in September, Saudi exports were hindered after a terrorist attack against the country’s most important petroleum facility.Some traders also profited from the so-called IMO2020 rules that force the world’s merchant shipping fleet to use fuel with a lower sulfur content. The rules have upended the oil-refining and maritime industries, causing gyrations in the price of fuel-oil and marine diesel.The results provide some breathing room for a sector that’s under assault from falling margins. Brent crude, the world’s most important benchmark, traded in a relatively narrow range of $52.51 to $75.60 a barrel through the year.Vitol, Glencore, Shell, BP and Total all declined to comment on their results.The trend was already clear in the results of Trafigura, which reports earlier than others due to a fiscal year ending in September. Trafigura said its oil unit delivered a record gross profit of $1.7 billion last year.$1 Billion YearElsewhere executives also expect a stellar year, even as they caution that they haven’t yet audited their financial statements or decided on the final writedowns against 2019 results. The oil-trading unit of Glencore Plc., for example, enjoyed its best ever result, according to people familiar with the matter. One person said Glencore expects to report earnings before interest and taxes of more than $1 billion in oil trading.At Gunvor, chief executive Torbjorn Tornqvist said 2019 was “up there among the best years ever” for the trading house, in part thanks to its expansion into LNG, super-cooled natural gas that can be transported by vessel. “We have a good year across the board.”Vitol, the world’s largest independent oil trader, expects to report earnings near $2 billion, one of its best results, according to a person familiar with the matter. Mercuria also enjoyed a “very good year,” its chief executive said.Inside Big Oil, it was also a trading bonanza. Although better known for their oil fields, refineries and pump stations, Shell, BP and Total also run in-house trading businesses that are larger than the better-known independent dealers. Shell alone trades the equivalent of 13 million barrels a day of oil, dwarfing the nearly 7.5 million barrels a day at Vitol.For BP and Shell, 2019 was one of the best years ever in trading, making several billions dollars, according to two people familiar with the matter. Shell alone made at least $1 billion in fuel-oil trading linked to the IMO2020 changes.The results came despite mounting legal and regulatory pressures on some of the biggest trading houses. Glencore is under investigation by the U.S. Department of Justice. Meanwhile, Vitol and Trafigura had their Geneva offices raided by Swiss prosecutors as part of a bribery investigation in Brazil. And Gunvor had to pay $95 million in Switzerland to settle a case that saw a former employee pay bribes to secure oil deals in the Republic of Congo and Ivory Coast.\--With assistance from Andy Hoffman, Jack Farchy, Ronan Martin and Francois de Beaupuy.To contact the reporter on this story: Javier Blas in Davos at email@example.comTo contact the editors responsible for this story: Will Kennedy at firstname.lastname@example.org, Emma Ross-Thomas, Helen RobertsonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
One of Europe’s largest independent oil producers is pledging to become carbon neutral by the end of the decade and will drop “petroleum” from its name as the industry comes under increasing pressure on emissions from investors. in decades, is aiming to reduce emissions from its own operations to zero by 2030, largely by replacing gas turbines that power offshore platforms with renewable electricity from land but also by buying carbon offsets. , Lundin is not giving any targets yet for reducing emissions from when its oil is burnt or used — by far the largest part of greenhouse gas pollution — as it has no refining operations so has little direct influence over how its oil is consumed.
Goldman Sachs spent most of its first 130 years shrouded in the secrecy of a partnership structure. It is effectively a coming-out party for a group that has spent the past two years planning a radical overhaul of its operations as it moves from its trading and investment banking roots to an institution offering everything from current accounts to money management and credit cards for the masses. Mr Solomon’s decision to pull back the veil and explain Goldman’s strategy is anything but.
Every day, I walk to work past St Paul’s Cathedral. Its architect Christopher Wren is buried inside, his tomb famously engraved with the words “Lector, si monumentum requiris, circumspice” — reader, if you seek his monument, look around you. Seeking glory, Richard Greenbury, Marks and Spencer’s chief executive until 1999, set out to become the first UK retailer to record £1bn in profit.
Citigroup Inc. (NYSE:C) stock is about to trade ex-dividend in 4 days time. Ex-dividend means that investors that...
Commonwealth Bank of Australia (ASX:CBA) shares are one of three that top brokers have named as sells for next week...The post Top brokers name 3 ASX shares to sell next week appeared first on Motley Fool Australia.
(Bloomberg Opinion) -- A year ago, I sat with Vale SA’s then-Chief Executive Officer Fabio Schvartsman in Davos, sipping lukewarm coffee. He chatted amiably about the next stage of the turnaround at the Brazilian mining giant, unaware that within 24 hours a river of sludge from one of his dams would take 270 lives in the town of Brumadinho. This week, he was among executives and former employees charged with homicide.The disaster on Jan. 25, 2019, a human and environmental catastrophe that’s been compared with BP Plc’s Deepwater Horizon oil spill, was supposed to be a moment of reckoning. It was, after all, Vale’s second such accident in just over three years. Yet 12 months on, shares in the $70 billion group are back at pre-Brumadinho levels, pointing to something less dramatic. The rebound also suggests investors are struggling to grasp the painful longer-term costs of such accidents for the company and the industry, in the era of stakeholder capitalism.The dam at the Corrego do Feijao mine was a problem from the beginning. It dated back to 1976, when it was started by a company later acquired by Vale. The dam was built over decades, using the tailings, or mining waste. New layers were added on top of old ones, until 2013. Unfortunately, such dams require water to drain out if they are to remain stable; the technical investigation found this one was too steep, and allowed to get too wet. High iron content made it brittle, too.In the end, there was no warning. After heavy rainfall in late 2018, it simply collapsed, releasing 10 million cubic meters of mud – roughly 4,000 Olympic swimming pools – in under five minutes.The timing for Vale was painful. It found itself accused of negligence and worse, just as the miner was emerging from another accident, the 2015 collapse of a dam owned by Samarco Mineracao SA, its joint venture with BHP Group. Schvartsman, a former pulp and paper executive, had stepped into the top job in 2017 vowing “never again.”The market’s immediate reaction was strong. Vale lost nearly a quarter of its value, almost $20 billion. Investors’ calculations of the ultimate cost were then obscured, though, as the hit to supply at the world’s largest iron-ore exporter eventually drove prices of the steelmaking ingredient well above $100 per metric ton.The cost is still unclear. That shouldn’t be startling. BP was still raising estimates for outstanding claims for Deepwater Horizon years after the event. In the end, the British oil major sold more than $70 billion of assets to remain in business; its shares haven’t recovered.The scale and jurisdiction are different here. Still, it’s surprising that Vale’s shares have bounced back.That doesn’t mean that no costs have been priced in. Compare Vale with iron ore-focused rival Rio Tinto Group. Rio’s London shares have risen almost 18% in the past 12 months thanks to surging iron-ore prices. Add in the impact of reinvested dividends, and the total return is more than 30%. The share increase alone implies a gap of some $16 billion with Vale.Some of that sum reflects the impact of lost revenue, given the 93-million-ton hit to production during a year when the price of high-quality Brazilian iron ore fines delivered to northern China averaged more than $100 a ton.The remainder, though, isn’t too far from what Vale itself has already set aside, handed out or had frozen for potential liabilities from Brumadinho: It paid $1.6 billion for reparations and compensation in 2019, and has provisioned $5.4 billion. Some 7.5 billion Brazilian real ($1.8 billion) of assets are frozen by the courts. The trouble is, that covers mostly first-order costs, like payouts for workers and families, the wider clean-up and some fixes to similar facilities elsewhere. Vale plans to spend $1.8 billion over five years shifting to dry stacking, a safer method to dispose of mine waste. By 2023, it says 70% of its production will use this.The wider impact of Brumadinho and the 2015 disaster on Vale and the industry will be more profound. Risks to tailings dams and other mining installations are already increasing, and there may be more monitoring in some corners. Extreme weather including heavy rainfall is far more frequent, and declining ore grades, or the percentage of minerals in rock that’s dug up, mean more waste to deal with. This coincides with increased concern among shareholders for the environmental impact of investments.Higher bills for more inspections might be manageable for large miners, but what about significantly slower permits, higher costs of closure, or projects that get blocked entirely by disgruntled communities? During a high tide for populism in Brazil and elsewhere, that’s harder than ever to estimate. It’s unlikely Brumadinho will be forgotten by governments and communities as disasters like Mount Polley in 2014 largely were.According to a report by the Church of England Pensions Board, 40 of the top 50 mining companies had made disclosures on their websites about tailings dams as of late December, as requested by campaigners and shareholders. That’s a solid three-quarters of the mining industry by market capitalization, but leaves plenty of laggards. Schvartsman, in the aftermath of Brumadinho, said Vale was a “Brazilian jewel” that could not be condemned because of an accident. His gross underestimation of the seriousness of the situation cost him his job, and moreInvestors and rivals would be wise not to make the same mistake. To contact the author of this story: Clara Ferreira Marques at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Clara Ferreira Marques is a Bloomberg Opinion columnist covering commodities and environmental, social and governance issues. Previously, she was an associate editor for Reuters Breakingviews, and editor and correspondent for Reuters in Singapore, India, the U.K., Italy and Russia.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
As an investor, you are still a human being, complete with feelings, attitudes and emotions. There is an argument for reflecting these facts in your selection of shares to invest in.The post Choose your shares like you choose your partner – with your head and your heart appeared first on Motley Fool Australia.
As we kick off 2020, we're taking a look at the past year's most popular stocks and the trends that fueled them. To do this, we took a peek within our award-winning technical analysis product Technical Insight to see which U.S. instruments yielded the highest search rate from our global investor base throughout 2019.
Here are my top 5 picks of leading ASX shares to help start a share portfolio, including Macquarie Group Ltd (ASX: MQG) and Carsales.com Ltd (ASX: CAR).The post 5 leading ASX shares to start a share portfolio appeared first on Motley Fool Australia.
Enterprise Products Partners (EPD) closed the most recent trading day at $27.35, moving -1.62% from the previous trading session.
(Bloomberg) -- Want to receive this post in your inbox every afternoon? Sign up here A recording appears to show President Donald Trump saying he wanted Marie Yovanovitch removed as ambassador to Ukraine, ABC News reported without providing the audio. “Get rid of her,” a voice that appears to be Trump’s is heard saying, ABC said. “Get her out tomorrow. I don’t care. Get her out tomorrow. Take her out. OK? Do it.” If accurate, the recording backs up testimony in the House impeachment hearings that Trump had Yovanovitch removed because she was viewed as an obstacle to his efforts to press Ukraine into investigating former Vice President Joe Biden and his son. She was recalled in May 2019. Bloomberg’s Green Daily is where climate science meets the future of energy, technology and finance. Sign up for our daily newsletter to get the smartest takes from our team of 10 climate columnists. Sign up here.Here are today’s top storiesHouse managers will wrap up their case against Trump Friday, completing three days of arguments in his Senate trial. Democratic Representative Adam Schiff drew plaudits from both sides of the aisle for his performance. Trump’s lawyers are to begin his defense on Saturday.U.S. health authorities are monitoring more than 60 people, including three in New York, for potential infection with the coronavirus. China, meanwhile, is struggling to contain rising public anger over its response to the outbreak as it restricts travel for 40 million people during a major holiday.Cities and states across America are using the courts to force energy companies to address the damage done by fossil fuels. But making Big Oil pay for climate change may be impossible.The Pentagon disclosed on Friday that 34 U.S. service members suffered traumatic brain injury in Iran’s missile strike this month, made in response to the U.S. assassination of its top general. Trump initially said no Americans were harmed. Goldman Sachs announced this week it won’t take a company public if the board is made up entirely of straight, white men (unless the company is in Asia).Can rodents be chic? Fashion labels trying to cash in on the coming Lunar New Year have a difficult task in 2020: It’s the Year of the Rat.What’s Luke Kawa thinking about? The Bloomberg cross-asset reporter says the 10-year U.S. Treasury yield is on track for its biggest one-week drop since November. However, it’s difficult to make the case that the retreat in yields is sending a meaningful signal about the economic backdrop. There are plenty of potential non-economic reasons for the strong start to the year for sovereign debt, he says. So while the bond market may be in a a tizzy, the Fed is still holding course, possibly because stocks aren’t far from last week’s all-time highs.What you’ll need to know tomorrowSalesforce encouraged employees to expense co-CEO's book. Soros to start $1 billion school to fight nationalists, climate change. Walmart is testing a higher minimum wage for certain jobs. Former Wells Fargo CEO walked away with more than $80 million. Elizabeth Holmes is defending herself in an Arizona fraud lawsuit. You can now use your AmEx at as many places as your Visa card. More and more NYC storefronts are empty as even banks disappear.What you’ll want to read tonightBoeing’s newest plane is expected to spread its gargantuan wings—so long that the tips are hinged—and rumble into the skies over Washington state in the next few days. The 777-9 is the planemaker’s first new model since two fatal crashes killed 346 people, leading to the global grounding of its 737 Max (which the federal government said was making strides towards returning to service). The new aircraft may face heightened scrutiny from regulators, airlines and investors. Safety aside, there’s concern that the jetliner is simply too big for today’s airlines.To contact the author of this story: Josh Petri in Portland at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Crude posted the worst weekly decline in more than a year on concern that the spread of China’s coronavirus will cripple fuel demand. Brent futures sank 2.2% in London on Friday. Deaths from the coronavirus rose to at least 26 and China expanded travel restrictions for about 40 million people in an attempt to halt contagion. The U.S. is monitoring more than 60 people for potential infection and lawmakers said health authorities are expected to confirm a third case.The Asian virus has spooked traders even as the World Health Organization stopped short of declaring a global health emergency. The contagion is disrupting travel during the Lunar New Year holiday, when hundreds of millions normally fly or ride home. The selloff has accelerated as trend-following funds turned bearish, according to TD Securities.“Contagion fears are spiking ahead of the biggest yearly migration ahead of new year,” said Daniel Ghali, a commodities strategist at TD Securities. “The fear factor is the risk of contagion, synonymous to what happened in 2003 with SARS which led to a 2% drop in Chinese economic growth.”The fast-spreading virus is the latest challenge for a market that’s been buffeted this year by geopolitical turmoil in the Middle East and North Africa, as well as the phase-one trade deal between Beijing and Washington. Goldman Sachs Group Inc. said earlier this week that, if the coronavirus has an impact similar to the 2003 SARS epidemic, demand could be curbed by 260,000 barrels a day. While this is not the first time global oil markets contend with an epidemic threatening demand, the current supply environment could worsen the situation.“The slightest fear of any economic slowdown will spur a long wave of liquidations because the market is so oversupplied,” said Walter Zimmermann, chief technical strategist at ICAP Technical Analysis.Some businesses in China including McDonald’s Corp. and Starbucks Corp. temporarily shut some stores in efforts to contain the virus.See also: China’s Economy Was Brightening This Month Before Virus Fear HitBrent crude for March settlement fell $1.35 to settle at $60.69 a barrel on the ICE Futures Europe exchange in New York putting its premium over WTI for the same month at $6.50 a barrel. Brent futures fell 6.4% this week.West Texas Intermediate futures for March delivery slipped $1.40 to end the session at $54.19 a barrel on the New York Mercantile Exchange, the lowest level since October. Meanwhile, based on the commodity’s relative strength index, WTI is sitting in oversold territory and is due for a rally.Options traders are paying the most since Oct. 31 for protection against price swings, according to the CBOE/CME WTI volatility index.\--With assistance from James Thornhill, Grant Smith and Saket Sundria.To contact the reporter on this story: Jackie Davalos in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: David Marino at email@example.com, Jessica Summers, Mike JeffersFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Kramer Capital Research CIO Hilary Kramer joins The Final Round to discuss her top stock picks, and why Boeing and General Electric are buys in this market.
(Bloomberg) -- Once-untreatable cancers and rare diseases are being vanquished. Medical breakthroughs have put Ebola and HIV on the back foot, even as new viruses emerge. Drug stocks have touched record highs after a decade of gains.But at the industry’s biggest annual gathering, a San Francisco investor meeting that draws in thousands from biotechnology, pharmaceutical and insurance companies, plus investors, bankers and consultants, there was a sense of uncertainty, even worry.“The model is broken in the U.S.,” Sanofi Chief Executive Officer Paul Hudson said in an interview.Despite record scientific and market returns, the health-care industry’s future in the U.S. has never seemed less clear. Candidates for the Democratic presidential nomination have proposed nationalizing the health-insurance system. The president has called for drug-price controls. And after years of struggle, there’s been no winner among the warring factions of drugmakers, health insurers, pharmacy-benefit managers and patients.For one attendee at the conference, hosted in a cramped hotel in the Union Square neighborhood, it felt like waiting for a metaphorical earthquake.“I think that these constant price increases create a situation where there’s all this built-up tension, all this built-up energy,” Denny Lanfear, the CEO of Coherus Biosciences Inc., said about his company’s goal to drive down drug prices with lower-cost competitors to expensive biotech drugs. “It’s kind of like the seismic tension along the San Andreas fault: At some point, you simply have an event which causes a tectonic shift in thinking.”And this week, Johnson & Johnson CEO Alex Gorsky said on a conference call that the long, volatile debate about the U.S. health care system has contributed to “what may sometimes feel like uncertain times.”Despite the industry’s worries, the market has for weeks suggested that things couldn’t be better. An S&P 500 subindex of health companies, including players like Johnson & Johnson and Pfizer Inc., would hit an all-time high by the conference’s end. Registration for the always-crowded event rose this year, as did San Francisco hotel occupancy, and average hotel rates were $972 a night, according to data from the San Francisco Travel Association.On Friday, some of that confidence began to crack. Health stocks including Bristol-Myers Squibb Co., CVS Health Corp., Amgen Inc. and others led declines after a report that the Trump administration could make a fresh push to lower prices.Among the almost 10,200 attendees last week at the conference, one of those small seismic tremors could be felt between the CEO of one major drugmaker and the top executive from CVS, the pharmacy plan and drugstore chain that negotiates drug prices for patients. The company is also one of the U.S.’s leading health insurers.“We need more regulation of the insurance industry,” David Ricks, CEO of Indianapolis-based drug giant Eli Lilly & Co., said in an interview Tuesday morning in one of the hotel’s lounges. “I don’t think the system will maintain itself like this for the next decade. We’ll have to see reform.”Moments later, Ricks spotted his counterpart at CVS, Larry Merlo, coming into the room with a group of employees and walked over to him to talk about a long-running business dispute.“We’ve had some differences in the past,” Ricks said to Merlo, as Whitney Houston’s “Dance With Somebody (Who Loves Me)” played over the speakers. The drug CEO told him that he hoped they could soon find some common ground on coverage of insulin, one of Lilly’s major products, and drug affordability.The two executives have clashed before, as have their industry lobbies -- blaming the other for the increasingly expensive price tags for U.S. pharmaceuticals. CVS currently excludes Lilly’s top-selling insulin from its main list of covered drugs.A CVS representative declined to say how the conversation ended, saying CVS would continue to work on getting insulin to patients at the lowest cost.“We’re willing to work with any part of the supply chain,” said CVS spokesman T.J. Crawford, “but we’re also willing to go it alone.” A Lilly spokesman also declined to comment further on the details of the executives’ conversation.Political TargetLater Tuesday evening, Democratic presidential candidates in Iowa for the final debate before the state’s presidential primary caucus took aim at the industry. Vermont Senator Bernie Sanders condemned health-care companies -- three times -- for “greed and corruption.” Former Vice President Joe Biden, who leads many polls, called for price controls: “You don’t have to pay the price. Limit what they can charge,” he said. Senator Elizabeth Warren, Sanders’s main rival, said she would use presidential authority to lower the prices of insulin, EpiPens and HIV medications. And almost all the candidates have either called for nationalizing the health insurance system or creating a government-run competitor to it.Sanders kept up the broadside a few days later, attacking “price-gouging” pharmaceutical companies Friday after BioMarin Pharmaceutical Inc. said it may place a $2 million to $3 million price on its experimental gene-therapy treatment, according to the Wall Street Journal.A BioMarin spokeswoman said in an email that the company hasn’t announced a price for its therapy and declined to comment on the Sanders tweet.President Donald Trump, who is making a bid for re-election this fall, has said he favors a proposal to peg price tags in the U.S. to the much lower levels in other countries, what’s known as an international pricing index. The drug industry is instead is pushing for a cap to how much patients pay out of their own wallets for prescriptions under Medicare’s prescription drug benefit.“The greatest threat the industry faces right now is President Trump pulling the trigger on international price index. It’s clear he doesn’t want to go into the election with nothing on pricing,” said James Greenwood, who leads industry group the Biotechnology Innovation Organization, which is ramping up lobbying efforts going into the election cycle.Washington’s appetite for drug pricing reform could even affect the most commercially viable medicines, like cancer treatments, said Chris Boerner, chief commercialization officer of Bristol-Myers.“Innovation has never been better: immuno-oncology, cell therapy, gene therapy are fundamentally changing diseases,” Boerner said. “But now we unfortunately do see an environment where policies put forth could change the ecosystem that led to those innovations. That’s deeply concerning.”New FocusAs scrutiny of the industry’s prices has continued, some drugmakers have turned away from areas where the pressure is most acute. Sanofi announced in December it would halt research in heart disease and diabetes: two legacy areas that faced significant cost pressure. Hudson, who took the helm in September, will double down on medicines for cancer and other diseases where reimbursement is more straightforward -- and often higher.They’re also making smaller bets, a striking contrast to 2019 mega-mergers like Bristol-Myers’s $74 billion acquisition of Celgene Corp. and AbbVie’s $63 billion bid for Allergan Plc.With the future uncertain, those type of big bets are no longer fashionable. In favor instead are smaller, “bolt-on” deals.Lilly announced a $1.1 billion deal on Jan. 10 that CEO Ricks described as “the definition of bolt-on,” while German drugmaker Bayer AG plans deals to invest further in cell and gene therapy, a move that would complement its acquisition of cell therapy-focused biotech BlueRock last year, Stefan Oelrich, president of pharma, said.Jennifer Taubert, executive vice president and worldwide chairman of pharmaceuticals at Johnson & Johnson, touted the company’s partnerships. “There still is a really good appetite and ability to partner even though there’s other funding mechanisms and things out there,” she said. Sanofi CEO Hudson said he, too, was looking at smaller, earlier-stage deals.“This year, it’s a tricky year, because with the prospect of drug pricing legislation there’s a number of different outcomes that could influence the type of company you’d want to buy,” said Richard Pops, CEO of biotech Alkermes Plc. “What’s going to be in the crosshairs in terms of regulatory or statutory reform that makes certain businesses more or less attractive?”“I can see why pharma is waiting to see how the dust settles before they make big commitments to different businesses,” Pops said.\--With assistance from Bailey Lipschultz.To contact the reporters on this story: Emma Court in New York at firstname.lastname@example.org;Riley Griffin in New York at email@example.comTo contact the editors responsible for this story: Drew Armstrong at firstname.lastname@example.org, Timothy AnnettFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Exxon (XOM) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
(Bloomberg) -- As Goldman Sachs Group Inc. moves to increase diversity on corporate boards, the investment bank isn’t extending the initiative to a particularly challenged region: Asia.Chief Executive Officer David Solomon revealed this week that starting in July the bank won’t handle initial public offerings for companies that lack either a female or diverse director. But the rule applies only to IPOs in the U.S. and Europe. Asia’s exclusion is striking, given how common all-male boards are in the region. Other bastions of male dominance, including Latin America and the Middle East, also went unmentioned.A Goldman spokeswoman said the bank will consider implementing the plan in Asia and other regions over time after consulting with its clients, as diversity awareness improves in those areas and that it will consult with its clients in those areas to improve board diversity.“Nowadays there’s no excuse for companies to have non-diverse, all-male boards,” said Fern Ngai, CEO of Community Business, a Hong Kong-based group that advocates for responsible and inclusive business practices. Goldman “should include Asia. I don’t see why they don’t.”Goldman is initially targeting regions where corporations have come further in making women a part of top-level decision-making. In California, new legislation mandates board diversity, with fines for noncompliance. Asia lags behind not just the U.S. and Europe, but also global leader Africa in the proportion of women on company boards, McKinsey Global Institute reported late last year.A study by index provider MSCI Inc. of companies in its global benchmarks last month showed about 33% of firms in Japan had no female board members, one percentage point worse than China and Hong Kong. By comparison, that figure was 1% in the U.S., while it was 94% in Saudi Arabia.Recent high-profile IPOs in Asia showed a paucity of female representation, with no women on the boards of Xiaomi Corp. and Meituan Dianping, which raised almost $10 billion combined in 2018. Goldman had a leading role in both those offerings.The bank was the biggest underwriter of IPOs in the U.S. and Europe last year. It had a more modest market share in Asia, coming in 19th, according to Bloomberg league tables. Goldman was an adviser on 86 IPOs in 2019, ranking sixth globally among underwriters.Last May, Hong Kong’s stock exchange issued a non-binding guidance letter to new IPO applicants, asking them to disclose their board-diversity policies and give an explanation if their directors are all of a single gender.\--With assistance from Zhen Hao Toh and Jeff Green.To contact the reporters on this story: Kiuyan Wong in Hong Kong at email@example.com;Julia Fioretti in Hong Kong at firstname.lastname@example.org;Cathy Chan in Hong Kong at email@example.comTo contact the editors responsible for this story: Candice Zachariahs at firstname.lastname@example.org, Jonas Bergman, Daniel TaubFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.