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☆ Obesity is a chronic disease. It's why treating it will be so profitable unless payers push back
▼ + stars: | 2023-04-30 | by ( Christina Cheddar Berk | ) www.cnbc.com time to read: +9 min

Lilly manufactures tirzepatide, which is sold under the brand name Mounjaro as a type 2 diabetes treatment. It's the chronic nature of obesity that will make these drugs so profitable, analysts have said. Huynh increased his target due to higher expectations for Mounjaro sales this year. Huynh boosted his prediction for the drug's sales this year to $3.7 billion from an prior estimate of $2.7 billion. "$48 billion is a monster number," Holz said, referring to an annual sales estimate that Bank of America has floated for future Mounjaro sales.

As earnings season continues, Wall Street analysts are raising their outlook for certain names set to report earnings next week. Against this backdrop, CNBC Pro used FactSet data to screen for companies reporting next week that analysts have been getting more bullish on. Overall, analyst earnings estimates for Incyte are up 48% over the past three months and nearly 13% over the past six months. On average, analysts have hiked their earnings per share estimates on the company by 46% over the past six months and 27% in the past three months. The cloud software company's earnings estimates have gone up 32% over the past six months.

☆ P&G earns household-staple status
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +2 min

The $356 billion company said on Friday that sales grew 4% year-over-year to $20 billion in the three months ended March 31. That growth was led by a 10% price hike for the second consecutive quarter, while also growing market share in the United States. P&G warned of higher commodities and packaging costs, as well as wage inflation. P&G is proving that the cushy Charmin double roll is irreplaceable. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ ValueAct urges ouster of Seven & i President Isaka - letter
▼ + stars: | 2023-04-21 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

The San Francisco-based investment firm, which owns a 4.4% stake in the convenience store operator, is ratcheting up the pressure by saying publicly that Isaka has acted in bad faith since becoming president in 2016. "It is time to find a new President for Seven & i," ValueAct wrote to Seven & i shareholders in a letter dated April 20. The letter also criticizes the board for having failed to conduct a succession review for Isaka. ValueAct said Seven & i recorded meetings with its team without its consent, violating privacy laws around the world. Seven & i did not immediately respond to a request for comment and ValueAct declined to comment beyond the contents of the letter.

LONDON, April 19 (Reuters) - If a mega Western recession is coming down the pike in the second half of this year, someone should point it out to the junk bond market. The investment herd seems more convinced than ever that recession is on the way amid tightening bank credit after the March bank stress - even if not all the incoming evidence supports that take. More than a third now see the biggest risk ahead as a bank credit crunch and global recession. And that's with junk spreads more than three times higher than quality corporates. U.S. and European junk bond spreads historicallyBank of America survey on investment grade bonds vs junkCOURAGE AND DECOMPRESSIONThere's little doubt than many investors want to steer well clear, for now at least.

WASHINGTON, April 13 (Reuters) - Senior officials from the United States, Europe and Britain met on Thursday with financial institutions to brief them on efforts by Russia to evade Western sanctions imposed over its invasion of Ukraine, a senior U.S. Treasury official told reporters. The firms - from the United States, Britain and Europe - assured the officials that they were working hard to avert Russian efforts to evade sanctions and export controls, said the official, speaking on condition of anonymity. Washington on Wednesday imposed sanctions on over 120 targets, including entities linked to Russian state-held energy company Rosatom and firms based in partner nations like Turkey in a sign of stepped-up enforcement. Treasury's top sanctions official, Undersecretary Brian Nelson, will visit Switzerland next week to discuss further moves to crack down on sanctions evasion, with additional stops in Italy, Austria and Germany, Reuters reported last week. Elizabeth Rosenberg, Treasury's assistant secretary for terrorist financing and financial crime, will travel separately to Kazakhstan and Kyrgyzstan.

☆ Europe's relationship with China reaches critical juncture after Xi-Putin meeting
▼ + stars: | 2023-04-05 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

European officials are traveling to China in the hope of persuading Beijing to denounce Russia's invasion of Ukraine and cool its recent kinship with the Kremlin. The 27-member bloc walks a tightrope, looking to develop economic ties with China but also reaffirming a close political and cultural relationship with the United States. Spain's Prime Minister Pedro Sanchez met China's President Xi Jinping last week. Europe's top foreign affairs diplomat, Josep Borrell, is heading to China next week. In a visit to Moscow in March, China's leader Xi Jinping referred to his Russian counterpart as a dear friend.

☆ ValueAct questions Seven & i strategy, pushes 7-Eleven spin-off
▼ + stars: | 2023-04-02 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

A representative for the company was not immediately available for comment and ValueAct declined further comment beyond the letter. Last month Seven & i signaled a "continuation of its status quo conglomerate structure," which confused and disappointed markets, the letter said. Now ValueAct wants answers to nine key questions when the company reports earnings this week. Does the board understand how frustrating the conglomerate structure is to shareholders and has it evaluated the conglomerate discount, the investment firm asked. The spin-off could be completed through a listing on the Tokyo Stock Exchange in roughly a year, ValueAct said earlier.

☆ White House says U.S. banking system is safe
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: 1 min

WASHINGTON, March 27 (Reuters) - The White House said on Monday that the U.S. banking system is safe despite stress on some institutions after two American banks collapsed, ratcheting up fears of a contagion that prompted U.S. officials to respond. "Because of the decisive actions that we have seen ... from our administration, the banking regulators and also the Treasury Department, the banking system is safe," White House spokesperson Karine Jean-Pierre told reporters. Reporting by Jeff Mason; writing by Jasper Ward; Editing by Doina ChiacuOur Standards: The Thomson Reuters Trust Principles.

☆ Biden administration adds 14 Chinese firms to unverified list
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +1 min

Being added to the list can potentially start a 60-day clock that could trigger much tougher penalties. ECOM International and HK P&W Industry Co Ltd were among those added to the list. They and the Chinese Embassy in Washington did not immediately respond to requests for comment. “Enforcing our export controls is a crucial part of protecting American national security,” U.S. Deputy Secretary of Commerce Don Graves said in a statement following the announcement. Reporting by Alexandra Alper and Karen Freifeld; Editing by Chizu Nomiyama and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Stocks may crash 30% and the US economy could suffer a 2008-style collapse as the 'everything bubble' bursts, expert says
▼ + stars: | 2023-03-23 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Stephanie Pomboy expects US stocks to plunge 30% and a broad economic downturn to take hold. Consumers, businesses, and real estate developers are being hit by soaring interest rates, she said. The stock market could plunge 30%, and the current pressure on banks could spread to commercial real estate, corporate credit, municipal bonds, and other markets, Pomboy said. The upshot is that consumers are struggling to afford their car loans and credit cards, and many companies and real estate developers are feeling the squeeze, she continued. Here's what he said about the outlook for stocks and house prices, and the threat of a recession.

March 22 (Reuters) - The U.S. Securities and Exchange Commission (SEC) has threatened to sue Coinbase Global Inc (COIN.O) over some of the crypto exchange's products, turning up the heat on the largely unregulated sector. Shares of Coinbase dropped nearly 13% to $67.33 in extended trading after the company said on Wednesday that the regulator had issued it a Wells notice - a formal declaration that SEC staff intend to recommend an enforcement action. Last month, Kraken agreed to shut down its U.S. cryptocurrency staking service and pay $30 million in penalties to settle SEC charges that it failed to register the program. Earlier in the day, the SEC charged Chinese cryptocurrency entrepreneur Justin Sun with fraud, and accused eight celebrities including actress Lindsay Lohan with illegally promoting his crypto assets. A Wells notice does not always result in charges or signal that the recipient has violated any law.

The SEC said Sun's activity generated tens of millions of dollars of illegal profit at other investors' expense. "This case demonstrates again the high risk investors face when crypto asset securities are offered and sold without proper disclosure," SEC Chair Gary Gensler said in a statement. Andrew Brettler, a lawyer for Lohan, said the actress did not know about the disclosure requirements until last March. The SEC has been ratcheting up efforts to crack down on the crypto industry, which Gensler has called a "Wild West" riddled with misconduct. It said Sun inflated apparent trading volume in TRX through extensive "wash trading," involving simultaneous or near-simultaneous purchases and sales with no real change in ownership.

March 14 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. A week ago Barclays economists raised their forecast for the Fed's March 21-22 meeting to a 50 basis point rate hike from 25 bps. Rates futures markets show traders now reckon the Fed is done raising rates and will cut by 50 bps later this year. The implied 'terminal' rate has plunged more than 100 bps since last week to 4.35%, and the year-end implied rate has plummeted more than 150 bps to 3.90%. World stocks fell on Monday and are now down five days in a row, the longest losing streak since October.

CASE FOR A SWIFT RETREAT1/ ENERGY PRICESTumbling energy prices are pulling down headline inflation. U.S. inflation rose 6.4% in January, the smallest rise since October 2021, from a 9.1% high last June. Instead, corporate profits have accounted for the lion's share of domestic euro zone price pressures since 2021, ECB data shows. A recent IMF study going back to the 1960s found that only in a small minority of cases where wages and inflation rose together for several quarters did sustained inflation result. The chief executive of Gunvor, a top oil trader, sees oil prices rising in the second half of 2023 on renewed Chinese demand.

☆ What’s changed since Powell last headed to Capitol Hill
▼ + stars: | 2023-03-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

It’s his first appearance before the committee since June last year, when inflation was on its way to 9%. Inflation has slowed in recent months, measuring 6.4% in January after hitting a 40-year high of 9.1% in June. Faced with a strong labor market, uncertain geopolitical developments and surging inflation, Powell told members of Congress then that he’d likely propose a quarter-point rate hike at the central bank’s forthcoming meeting. It’s now March 2023, and the central bank is faced with an “extraordinarily strong” labor market, ongoing geopolitical uncertainty and stubborn inflation. One month ago, the probability for a half-point increase was 3.3%, according to the CME FedWatch Tool.

☆ Continuing Sanctions Against Russia Mark ‘Tectonic’ Shift
▼ + stars: | 2023-02-24 | by ( Richard Vanderford | ) www.wsj.com time to read: +7 min

Hundreds of companies, though, decamped, calculating that the looming threat of sanctions ratcheting up and reputational risk warranted an exit. Prof. Sonnenfeld and Mr. Tannebaum both have been personally sanctioned by Russia, which has accused critics of engaging in a “Russophobic” campaign. “Countries continue to rely on those tools for foreign policy. The Russia sanctions have functioned as a “wake-up call” to the C-suite, Mr. Smith said. The use of coordinated sanctions, both in Russia and as a broader foreign policy tool, doesn’t seem to be going away, experts agreed.

☆ A Year After Russia’s Invasion of Ukraine, Tough Sanctions Linger
▼ + stars: | 2023-02-24 | by ( Richard Vanderford | ) www.wsj.com time to read: +7 min

Russia’s invasion of Ukraine a year ago prompted a volley of tough sanctions from the U.S. and its allies, a historic use of economic measures that will likely have lasting implications for businesses. Hundreds of companies, though, decamped, calculating that the looming threat of sanctions ratcheting up and reputational risk warranted an exit. “Countries continue to rely on those tools for foreign policy. The Russia sanctions have functioned as a “wake-up call” to the C-suite, Mr. Smith said. The use of coordinated sanctions, both in Russia and as a broader foreign policy tool, doesn’t seem to be going away, experts agreed.

☆ The Fed is 'behind yet again' as hot inflation data signals bad news for stocks, bonds and economy, Mohamed El-Erian says
▼ + stars: | 2023-02-24 | by ( Brian Evans | ) www.businessinsider.com time to read: +2 min

More hot inflation data is putting the Fed "behind yet again," according to economist Mohamed El-Erian. He told Bloomberg TV on Friday that the latest reading is "bad news across the board." He added that the central bank could move to a 50-basis-point rate hike at the next FOMC meeting. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. It is just bad news," El-Erian told Bloomberg TV on Friday.

☆ Morning Bid: Kuroda 2.0
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +2 min

[1/2] The Japanese government's nominee for the Bank of Japan (BOJ) Governor Kazuo Ueda arrives for a hearing session at the lower house of the parliament in Tokyo, Japan, February 24, 2023. Interest rate markets are positioned for an end to yield curve control as a first step away from decades of super-easy policy experiments in Japan. Yet as he fronted his confirmation hearing before parliament on Friday, he sounded very much like incumbent Haruhiko Kuroda. Traders responded with relief and the Nikkei share average (.N225) had its best session in a month. A surprise could shake things up, though with U.S. rate expectations already ratcheting higher through February a degree of stickiness is priced in.

[1/6] Ukrainian servicemen of the 17th Independent Tanks Brigade are seen atop of a T-64 tank, as Russia's attack on Ukraine continues, near the frontline town of Bakhmut, Donetsk region, Ukraine February 23, 2023. "Using Ukraine, the collective West is seeking to dismember Russia, to deprive it of its independence. U.S. President Joe Biden will meet virtually on Friday with G7 leaders and Zelenskiy to mark the anniversary and announce new sanctions against those aiding Russia's war effort, the White House said. Ukraine and its Western partners have brushed off the nuclear talk as a diversion from a stalled military campaign. Some U.S. and Western officials estimate Russia's military casualties at nearly 200,000 dead or wounded, while in November the top U.S. general said more than 100,000 troops on each side had been killed or wounded.

☆ Nike is facing a wave of retail crime across the country
▼ + stars: | 2023-02-23 | by ( Matthew Kish | ) www.businessinsider.com time to read: +3 min

In an email sent to Portland officials, the company said it's at a "critical juncture." On Tuesday, police in Napa arrested a man for attempting to steal from a local Nike store after police were made aware of a retail theft crew targeting Nike stores, according to local news reports. Nike has 344 US stores, including outlet and Converse stores, according to its last annual report. In a letter sent to Portland officials this month, Nike said the "safety of our employees and consumers is a responsibility Nike takes very seriously. Insider obtained Nike's letter to the city and the internal email among city officials through a public records request.

☆ Exclusive: Caligan urges Anika Therapeutics to conduct review, plans board challenge
▼ + stars: | 2023-02-21 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +3 min

Caligan Partners owns a roughly 4% stake in Anika and is ratcheting up pressure to protest an underperforming stock price and losses at the company's joint preservation segment. "Anika may be better positioned as a private company or as part of a larger organization," Caligan's managing partner, David Johnson, wrote to the board. Anika's osteoarthritis knee pain relief injection treatments would be attractive to other companies and could be worth almost $60 per share, Johnson wrote. On Tuesday, the company's stock price climbed nearly 6% as the broader market declined. Anika is best known for its viscosupplement portfolio, including Monovisc and Orthovisc, marketed by Johnson & Johnson (JNJ.N).

☆ The Fed may hike interest rates another 3 times this year, Goldman says - and that would dial up pressure on stocks
▼ + stars: | 2023-02-21 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

The Federal Reserve could lift interest rates by another 75 basis points in total this year, Goldman Sachs says. The bank's chief economist suggested the Fed might raise rates at its March, May and June meetings to beat inflation. Most investors anticipate the US central bank will ease up on tight monetary policy or even start cutting interest rates this year as inflation cools. But with retail sales and payrolls surging and unemployment falling, there's a possibility the Fed may decide it has to keep ratcheting up interest rates. Higher interest rates encourage saving over spending and make borrowing more expensive, which tends to alleviate upward pressure on prices.

☆ Salesforce engineers are about to be hit with new performance metrics, while some salespeople are being pressured to quit
▼ + stars: | 2023-02-14 | by ( Ellen Thomas | Ashley Stewart | ) www.businessinsider.com time to read: +8 min

Some Salesforce employees have been offered a "Prompt Exit Package" instead of a layoff, with less severance. Employees say the company is ratcheting up performance expectations as activist investors invade. "The company is pushing hard for productivity tracking and metrics on all facets," one employee told Insider. Salesforce cut a few hundred salespeople in November, a person familiar with the matter told Insider, and the company told Insider the cuts were made for "accountability," implying that performance was a consideration. In some cases, the company has presented employees with PEP offers in the same week it has executed mass layoffs, employees told Insider.

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