Connect with us

Business

SoftBank-owned Arm cancels Qualcomm’s design licence amid legal dispute

Published

on

Asian currencies weakened against a resurgent US dollar on Wednesday morning, with Japan’s yen extending a slide past ¥150 amid uncertainty over the pace of future Federal Reserve rate cuts.

The yen shed 0.4 per cent to ¥151.60 and South Korea’s currency dropped 0.4 per cent to Won1,383.1. The Thai baht and Indonesian rupiah also declined against the dollar.

In equity markets, Hong Kong’s benchmark Hang Seng index rose 0.6 per cent, leading gains, while China’s CSI 300 index trailed the region as it edged down 0.2 per cent.

Gold declined 0.4 per cent to $2,742 per troy ounce, slightly down from recent record highs. Brent crude futures, the international oil benchmark, edged down 0.3 per cent to $75.78 per barrel.

Advertisement

Source link

Continue Reading
Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Business

Donald Trump accuses UK Labour party of interference in White House race

Published

on

Unlock the US Election Countdown newsletter for free

Donald Trump has filed a legal complaint against the UK’s Labour party, alleging “illegal foreign campaign contributions and interference” to help Kamala Harris in the US presidential election.

The complaint filed by Trump’s campaign to the independent Federal Election Commission accuses the Labour party of sending strategists and staffers to help the Democratic presidential candidate’s election campaign and says Harris has accepted the help. Prime Minister Sir Keir Starmer, however, defended the aides, saying they were volunteering in their spare time.

Advertisement

“When representatives of the British government previously sought to go door-to-door in America, it did not end well for them,” lawyers for the Trump campaign wrote in a letter to the FEC dated Monday, in a reference to the American Revolution.

Trump’s legal team cited media reports that Labour party officials — including Starmer’s chief of staff Morgan McSweeney; his head of strategy Deborah Mattinson; and Matthew Doyle, Downing Street’s director of communications — had travelled to the US in recent months to advise the Harris campaign.

The complaint also cites a now deleted LinkedIn post from Sofia Patel, head of operations at the Labour party, who wrote that “nearly 100” current and former Labour party staff would be travelling to the US in the coming weeks to help elect Harris, the Democratic vice-president. “[We] will sort out your housing,” the post added.

Trump’s lawyers argue such support amounts to “contributions” from foreign actors, in violation of US campaign finance laws.

Advertisement

The Republican candidate’s lawyers requested an “immediate investigation” into what they described as “blatant foreign interference” in the election by both Labour and Harris’s campaign.

But Starmer pushed back late on Tuesday, telling journalists en route to the Commonwealth summit in Samoa that party members “have gone over [to the US] pretty much every election”, adding: “They’re doing it in their spare time, they’re doing it as volunteers.”

Emily Thornberry, Labour chair of the House of Commons foreign affairs committee, questioned the Labour activists’ efforts, telling the BBC: “I actually don’t think that British politicians going over to America and telling the Americans the way they should vote really helps.”

She added she would not like it if “an American politician came here and told me how to vote”.

Advertisement

The Trump campaign’s complaint comes with less than two weeks to go in one of the tightest US election races ever. Trump and Harris are locked in a dead heat in the polls, according to the Financial Times’ tracker.

“In two weeks, Americans will once again reject the oppression of big government that we rejected in 1776,” said Susie Wiles, co-chair of Trump’s campaign. Wiles said Harris’s campaign was “flailing” and “seeking foreign influence to boost its radical message”.

Billionaire Elon Musk, a major donor to Trump who is actively campaigning for him, also claimed last week that on his social media platform X that Labour activists’ work for Harris was “illegal”.

Nigel Farage, the UK Reform party leader and member of parliament who has campaigned for Trump this year, also weighed in on X: “This is direct election interference by the governing Labour Party, and particularly stupid if Trump wins. Who is paying for all of this?”

Advertisement

A spokesperson for the Harris campaign did not respond to a request for comment.

Starmer and Trump met for the first time last month on the sidelines of the UN General Assembly in New York, where the men shared a two-hour dinner. Trump said ahead of the meeting that the prime minister was “very nice”.

On his way to the Commonwealth summit, Starmer told reporters he did not believe the row over Labour support for Harris risked jeapordising his ties to Trump, saying the two men had “established a good relationship” over dinner.

Advertisement

“We had a good, constructive discussion and, of course as prime minister of the United Kingdom I will work with whoever the American people return as their president in their elections, which are very close now,” he added.

Source link

Continue Reading

Money

Four reasons why your Pension Credit could be STOPPED and how to avoid losing benefit cash worth £3,900 a year

Published

on

Four reasons why your Pension Credit could be STOPPED and how to avoid losing benefit cash worth £3,900 a year

PENSION Credit payments can be stopped or cut for many reasons, so it’s important to be clued up to make sure you don’t get cut off.

Households could see their cash flow stalled if they fail to meet the requirements set out by the government’s Pension Service.

It's important that a change in circumstances doesn't affect pension credit payments

1

It’s important that a change in circumstances doesn’t affect pension credit paymentsCredit: PA

Your payments could be affected if there’s a change in your personal or financial circumstances.

Advertisement

This can include things like moving house or switching bank accounts.

And it’s more important than ever to make sure you don’t lose your entitlement to Pension Credit – which is worth on average £3,900 a year alone – as it can unlock other payments, including the winter fuel payment.

The winter fuel payment, worth up to £300, was previously available to everyone over the state pension age (66).

However, cuts made by chancellor Rachel Reeves mean the payment is limited to around 1.5million retirees on pension credit or those receiving certain six other means-tested benefits.

Advertisement

We have compiled a list of reasons why your Pension Credit could be cut, which you can check below.

Of course, it’s important to check the DWP website, or contact the department directly, if you think something has happened that could affect your payments.

Changes to your money

You need to tell the Pension Service if there have been any changes to your household income, according to Citizen’s Advice.

That’s because your income affects the amount of pension credit you get – and if you get it at all – meaning payments could be stopped altogether in some cases if your income increases beyond the eligibility threshold.

Advertisement

Your income can go up or down for a number or reasons, for instance if you start to receive other benefits, or if another benefit payment stops, including tax credits.

Winter Fuel Payment Changes

A change in your pension, savings or investments can also cause your Pension Credit eligibility to change, for example if you start getting a new pension or take a lump sum from your pension pot.

Plus, if you start or finish employment or self-employment, you will need to inform the Pension Service.

Of course a reduction to your income could also mean that you’re entitled to higher payments too.

Advertisement

You should also let the government know if you have increased costs like service charge or ground rent too, as this could increase your payments.

It’s not just your own financial circumstances that could affect your claim.

If someone else in your house starts receiving more or less money from benefits or work, you will need to tell the Pension Service.

Crucial to claim Pension Credit if you can

Advertisement

HUNDREDS of thousands of pensioners are missing out on Pension Credit.

The Sun’s Assistant Consumer Editor Lana Clements explains why it’s imperative to apply for the benefit..

Pension Credit is designed to top up the income of the UK’s poorest pensioners.

In itself the payment is a vital lifeline for older people with little income.

Advertisement

It will take weekly income up to to £218.15 if you’re single or joint income to £332.95.

Yet, an estimated 800,000 don’t claim this support. Not only are they missing on this cash, but far more extra support that is unlocked when claiming Pension Credit.

With the winter fuel payment – worth up to £300 now being restricted to pensioners claiming Pension Credit – it’s more important than ever to claim the benefit if you can.

Pension Credit also opens up help with housing costs, council tax or heating bills and even a free TV licence if you are 75 or older.

Advertisement

All this extra support can make a huge difference to the quality of life for a struggling pensioner.

It’s not difficult to apply for Pension Credit, you can do it up to four months before you reach state pension age through the government website or by calling 0800 99 1234.

You’ll just need your National Insurance number, as well as information about income, savings and investments.

Change to personal details

The Pension Service will need to be told if you change important personal details like your name, or if you move house.

Advertisement

You will also need to report if people move in or out of your home.

You have to tell them even if it seems like a small change, or it’s only for a short time.

For example, you’ll need to tell them if someone in your house moves out – even if they’re planning to move back in.

Going into hospital, a care home or sheltered accommodation could also have a baring on your Pension Credit payments.

Advertisement

You should tell the Pension Service as soon as possible about any changes to avoid this.

It may sound obvious, but make sure you inform the government if you change bank accounts and you’ll need your payment to be sent elsewhere.

Family or relationship changes

Getting married, divorced or entering a civil partnership could affect your Pension Credit payments.

The same goes for if you have a partner move in with you, or leave your home.

Advertisement

If you start living with a partner who’s under the State Pension age, your pension credit will stop.

Instead you might be eligible for Universal Credit under the pension credit rules for mixed age couples.

Once both of you are over the state pension age, you could be eligible for Pension Credit again.

If you’re a carer and you stop providing care for someone, you will need to tell the Pension Service.

Advertisement

Additionally, if you get extra Pension Credit for looking after a child, you must tell the Pension Service if the child stops living with you.

It’s also important to tell the service if your partner, or someone you live with dies.

Pension Credit explained

Pension Credit is a benefit which gives you extra money to help with your living costs if you’re on a low income in retirement.

Advertisement

It can also help with housing costs such as ground rent or service charges.

You may be able to get extra help of you’re a carer, have a disability, or are responsible for a child.

It also opens up access to lots of other benefits such as the warm home discount scheme, support for mortgage interest, council tax discounts, free TV licences once you’re over 75, and help with NHS costs.

To qualify, you need to be over state pension age and live in EnglandScotland or Wales.

Advertisement

If you have a partner, you need to include them on your claim.

Pension Credit tops up:

  • your weekly income to £218.15 if you’re single
  • your joint weekly income to £332.95 if you have a partner

However, even if your income is higher, you might still qualify if you have a disability or caring responsibilities.

There is also another element to Pension Credit called savings credit. To get this, you need to have saved some money towards your retirement.

You can get an extra £17.01 a week for a single person or £19.04 a week for a married couple.

Advertisement

If you have more than £10,000 in savings, the government uses a calculation to work out how much it adds to your income.

Every £500 over £10,000 counts as £1 income a week. For example, if you have £11,000 in savings, this counts as £2 income a week.

Leaving the UK

You can claim Pension Credit for up to four weeks if you are abroad.

This is extended to eight weeks if the absence is due to the death of your partner or a child.

Advertisement

If they are receiving medical treatment, this can be extended to a maximum of 26 weeks.

You will need to tell the Pension Service if you plan to leave the UK for more than four weeks.

You’ll stop getting Pension Credit if you leave the UK permanently.

How do I report a change of circumstances?

You will need to call the Pension Service and tell them about the change.

Advertisement

You can get someone else to call on your behalf, but you must be with them when they call.

You can reach the service on 0800 731 0469. Calls are free from mobiles and landlines.

After you’ve called, Citizen’s Advice say that it’s best to write a letter to the Pension Service to confirm the change.

In the letter, you should explain what the change is and when it happened.

Advertisement

Ask the Post Office for proof of postage – you might need to show when you sent your letter.

You can find the address of your nearest Pension Centre on GOV.UK.

What to do if your payment has been deducted?

If you don’t tell the government about a change straight away, or gave the wrong information, you might be asked to repay money.

This could reduced the amount you get each month, and even reduce it to zero in some cases.

Advertisement

You can dispute deductions from your Pension Credit payments. This is know as mandatory reconsideration.

You can ask for mandatory reconsideration if any of the following apply:

  • You think the office dealing with your claim has made an error or missed important evidence
  • You disagree with the reasons for the decision
  • You want to have the decision looked at again

It is free to do this, but you usually need to ask for the reconsideration within one month of the date of the decision.

You can ask for it after one month if you have a good reason, for example if you’ve been in hospital or had a recent bereavement.

It always worth using a benefits calculator if you predict your circumstances will change.

Advertisement

This will allow you to budget for the future and also give you a heads up on whether or not you should speak to your council to ask for advice.

There are a number of benefit calculators online on charity websites such as Turn2us, Policy in Practice and Entitledto.

You can also visit your local Citizens Advice for any questions about how much you benefits you are owed.

Are you missing out on benefits?

Advertisement

YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to

Charity Turn2Us’ benefits calculator works out what you could get.

Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.

MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.

Advertisement

You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.

Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Advertisement

Source link

Continue Reading

Travel

Lonely Planet reveals top 2025 holiday hotspots – including underrated English region

Published

on

East Anglia was named a top destination to visit in 2025 by Lonely Planet

LONELY Planet has revealed its top list of trending destinations that you need to visit next year.

The best cities, countries and regions to visit have all been announced by the global travel books in their Best in Travel 2025.

East Anglia was named a top destination to visit in 2025 by Lonely Planet

4

East Anglia was named a top destination to visit in 2025 by Lonely PlanetCredit: Alamy
Norfolk is home to some of the UK's best beaches

4

Advertisement
Norfolk is home to some of the UK’s best beachesCredit: Alamy

Each category has both popular places and ‘hidden gems’ as part of the top 10 list.

As part of their Top 10 Regions, East Anglia bizarrely made the top 10.

Called the “enigmatic UK region,” it made the top list for being a “true taste of old England, combined with beautiful nature reserves […] lively coastal beach towns and picturesque inland waterways”.

The region is made up Norfolk, Suffolk, Essex and Cambridgeshire.

Advertisement

Read more on best in 2025

Some of the highlights include “listening to birds at Mismere” as well as university hopping in Cambridge and having a night out in Norfolk with theatre, live music and art shows.

Annette Salkald, North Suffolk Coast Reserves Warden, Royal Society For The Protection Of Birds said: “I love the quirky market towns with unusual shops and a real community vibe.

She also praised the region’s beautiful scenery and nature.

Visit England‘s Chief Executive Patricia Yates added: “It is fantastic to see East Anglia take its place on the global stage as one of Lonely Planet’s Best in Travel 2025 top regions.

Advertisement

“And it’s no surprise with the area boasting an outstanding coastline, fabulous seaside towns, historic attractions, waterways and breathtaking countryside.

“This accolade will encourage domestic and international visitors to explore more of the region and discover the warm welcome that awaits them.”

Inside picturesque UK town that has doubled for Netherlands in movies – including amazing James Bond chopper scene

The other top regions included Bavara in Germany, the Jordan Trail and Valais in Switzerland, although the no.1 spot went to South Carolina’s Low Country and Coastal Georgia, USA.

When it comes to the 10 Best Cities, while none in the UK made the cut, there were a number of European cities to feature.

Advertisement

The no.1 spot was Toulouse in France, dubbed the Pink City because of its pink terracotta bricks.

Bulgaria’s Bansko came in third, known for being a cheap ski destination, followed by Genoa in Italy and Spain‘s Majorca.

Lithuania was one of the top 10 countries

4

Lithuania was one of the top 10 countriesCredit: Alamy

And for the top 10 Best Countries gave the top spot to Cameroon, with Lithuanisa and Slovakia making the list too.

Advertisement

Nitya Chambers, Lonely Planet’s SVP, Content and Executive Editor, said: “Best in Travel 2025 is the latest edition of Lonely Planet’s annual love letter to the world.

“While mindful of our responsibilities and impact as travelers, we’re proud of the destinations, journeys and experiences featured here and are excited to share the local expertise and insight at the heart of these recommendations.

Lonely Planet’s Top 10 Best Cities 2025

  1. Toulouse, France
  2. Pondicherry, India
  3. Bansko, Bulgaria
  4. Chiang Mai, Thailand
  5. Genoa, Italy
  6. Pittsburgh, USA
  7. Osaka, Japan
  8. Curitiba, Brazil
  9. Palma de Mallorca, Spain
  10. Edmonton, Canada

“Wherever you are in the world, we’re confident Best in Travel brings fresh inspiration for the year ahead.”

It’s not the only trending destination for 2025.

Advertisement

Bosnia and Herzegovina was named a “less crowded alternative to Dubrovnik’ by a team of travel experts at Wild Frontiers.

Toulouse was named the no.1 city

4

Toulouse was named the no.1 cityCredit: Alamy

Brittany in France has made the list of trending destinations for 2025 by American Express.

Advertisement

Skyscanner’s trending destinations 2025 included Tartu in Estonia, Reggio Calabria in Italy and Córdoba, Spain.

Lonely Planet’s Top 10 Regions 2025

  1. South Carolina’s Low Country and Coastal Georgia, USA
  2. The Terai, Nepal
  3. Chiriqui, Panama
  4. Launceston & the Tamar Valley, Australia
  5. Valais, Switzerland
  6. Giresun & Ordu, Turkiye
  7. Bavaria, Germany
  8. East Anglia, England
  9. Jordan Trail
  10. Mount Hood and the Columbia River Gorge region, Oregon, USA

Source link

Continue Reading

Business

India markets show how tough they are! Nifty, Sensex bounce back despite third day of selling pressure- The Week

Published

on

India markets show how tough they are! Nifty, Sensex bounce back despite third day of selling pressure- The Week

India stock market once again proves its mettle, powered by domestic investors. Benchmark indices are back to green, rebounding from Wednesday morning’s opening slide as it entered the third day of selling by foreign investors. Domestic institutional investors and firms continued their mantra of buying the drip, turning the market around.

In early trade, the BSE Sensex rallied by 168.79 points to 80,389.51, while the NSE Nifty climbed 46.2 points to 24,518.30. Banks such as HDFC and Kotak Mahindra, along with Bajaj Finserv, IT services giant TCS and automaker Maruti Suzuki were among the top gainers in morning trade.

Bajaj Finance stock inched up on its earnings after announcing a lacklustre 3 per cent lift in consolidated net profit hitting Rs 4,014 crore for the second quarter ended September 2024. Bajaj Finserv, HDFC Bank, Nestle, Kotak Mahindra Bank, Tata Consultancy Services, and Maruti were among the other big gainers. NTPC, UltraTech, and Mahindra and Mahindra were among the scripts that fell behind.

“The ongoing trend of largecaps outperforming mid and smallcaps is likely to sustain, going forward. FII selling and the countervailing trend of DII buying is likely to continue. This will impart strength to largecap financials, particularly banking stocks like HDFC, ICICI, Axis and Kotak which are fairly valued in this market with elevated valuations,”said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.

Advertisement

ALSO READ: There is need for greater financial discipline by states, says Amitabh Kant

According to the NSE, Domestic Institutional Investors (DIIs) bought equities worth Rs 5,869.06 crore on Tuesday, despite foreign investors offloading a massive Rs 3,978.61 crore following global factors. Chinese recovery was further bolstered by Shanghai and Hong Kong trading higher. Among the other Asian markets, Seoul was up, but Tokyo was down. On Tuesday, the BSE benchmark slipped 930.55 points or 1.15 per cent to 80,220.72, while the NSE Nifty fell 309 points or 1.25 per cent to 24,472.10. The Indian rupee was nearly flat at 84.0675 versus the US dollar.

ALSO READ: Netflix stock continues to climb on impressive earnings, hit content from countries like India

Banking and market expert Ajay Bagga sees India to represent “the biggest opportunity to deliver growth, at massive scale in the world, for the next two decades.”

Advertisement

“We can’t control global events, though we know the extreme market reactions that follow. Given that recoveries are also very sharp and concentrated into a few days, the bigger risk is that of being out of the markets,”added Bagga, as India’s local investors and organisations went on a buying spree in the past few days, offsetting the offload by foreign investors.

Source link

Advertisement
Continue Reading

Business

An activist tried to take on Pfizer. Then things got messy

Published

on

This is an audio transcript of the Behind the Money podcast episode: ‘An activist tried to take on Pfizer. Then things got messy’

Michela Tindera
Hey there. It’s me, Michela. Before this week’s episode, I want to inform you of an upcoming event that I think you’ll want to know about. This December 3rd and 4th, the FT is hosting its Global Banking Summit in London. And if you attend, you’ll join the CEOs of Deutsche Bank, Barclays, Wells Fargo and more to explore the top global issues dominating banking today. Oh, and I’ll be there too. I’m hosting a live Behind the Money podcast on the 3rd. To find out more about the summit and claim a discount code, check out our show notes and see you there.

It’s Sunday, October 6th. Pharmaceutical business Pfizer is about to host a board off-site in Ireland. And the company’s CEO, Albert Bourla, is getting ready for it. While he’s doing that, he opens his email. Inside of his inbox, he sees a message that’s a bit out of the blue. (Email alert bleeps) It’s from Pfizer’s former chief financial officer Frank D’Amelio, and the email is a bit weird: it’s completely blank. And he looks at the To line of the email, which contains something very unexpected. The blank email was also sent to someone from Starboard Value, a major activist investor.

Oliver Barnes
I mean, if you want corporate drama where, like, life itself is stranger than fiction, this feels like it.

Advertisement

Michela Tindera
That’s the FT’s US pharmaceutical correspondent Oliver Barnes. And he says that Bourla receiving this seemingly fat-fingered email is only the beginning.

Oliver Barnes
What follows is, as one Wall Street dealmaker told me, the worst first week in an activist campaign in the history of Wall Street.

[MUSIC PLAYING]

Michela Tindera
I’m Michela Tindera from the Financial Times. Today on Behind the Money, we’re taking you inside a very chaotic activist investor campaign and looking at what it could mean for one of the world’s biggest pharmaceutical companies.

Advertisement

[MUSIC PLAYING]

Remember back to the height of the Covid-19 pandemic, everyone’s waiting on tenterhooks for a vaccine, and the US pharma giant Pfizer is on the case.

News clip 1
The FDA has now granted full approval of the Pfizer Covid-19 vaccine . . . (cuts to other news clips)

News clip 2
. . . Pfizer is shipping out the first doses of the coronavirus vaccine . . . 

Advertisement

Michela Tindera
Oliver says that Covid transforms Pfizer. It takes it from the company that was best known for developing drugs like Viagra and Lipitor and turns it into the stock to invest in.

Oliver Barnes
And it has the almightiest of all almighty bull runs. And its market cap soars to more than $350bn. Record highs, basically.

Michela Tindera
And Pfizer CEO Albert Bourla is thrown into the limelight.

Oliver Barnes
Bourla is someone who is praised for delivering the Covid vaccine, effectively taking on the status of like a world leader during the pandemic. I mean, he is held in like incredibly high esteem.

Advertisement

Michela Tindera
He writes a book. President Joe Biden calls him his good friend. But as Covid fades into the rear-view mirror, Pfizer starts to face new challenges. For one, the vaccines become old news, and then the next big thing in pharma kicks off.

Oliver Barnes
There’s pharmas that have weight-loss drugs and are making money out of them, which are two companies: Eli Lilly, the world’s biggest-ever pharma company, and Novo Nordisk, the world’s second-biggest ever pharma company, and then everyone else. So it’s the kind of story of, like, there are these ones doing gangbusters and Pfizer’s a bit of an also-ran at the moment.

Michela Tindera
But even so, Pfizer is sitting on this Covid vaccine windfall and Albert Bourla seems to have a plan to find new ways for the company to grow.

Oliver Barnes
They obviously get all this money from Covid. And partly using that cash and partly using debt, they go and fund $70bn worth of M&A.

Advertisement

Michela Tindera
Most importantly, in March of 2023, Pfizer announces it’s making a $43bn acquisition of a cancer drugmaker called Seagen.

Oliver Barnes
Seagen is in like quite a cool, hot area of drug discovery. But the doubts that investors have about this acquisition — it’s a big acquisition, it’s $43bn — and the consensus among investors about the Seagen acquisition is that Pfizer basically overpaid. To a lot of investors, it doesn’t look like the kind of acquisition that is creating value.

Michela Tindera
And so these factors — the slowing demand for vaccines, the rise of weight-loss drugs and the M&A spree that upset investors — they all play a role in Pfizer share price collapsing.

Oliver Barnes
Basically, all the pandemic gains evaporate and it falls to, like, pre-pandemic levels. And it goes from like a high of nearly $60 a share to now like $29 a share or thereabouts.

Advertisement

[MUSIC PLAYING]

Michela Tindera
This makes the company start to look like a prime target for an activist investor.

Maria Heeter
So the goal of activist investing is primarily to make money.

Michela Tindera
That’s Maria Heeter. She covers deals for the FT, and she’s been following the story with Oliver. 

Advertisement

Maria Heeter
Activist investors tend to come into a company stock. They accumulate a position, and then they’ll knock on the door of management, the CEO, the board, and say, we are shareholders in your company. We have a large position. We would like to see the share price go up. And they outline a list of decisions, changes that they think would make that share price go up.

Michela Tindera
And this is where the hedge fund, Starboard Value, comes in.

Maria Heeter
They’re probably best known for, in 2014, replacing the entire board of directors of the parent company of Olive Garden, which is a casual Italian dining restaurant loved by people in the US. They’d outlined a very detailed presentation that sort of went so granular that they criticised Olive Garden for not salting their pasta water adequately.

Michela Tindera
Maria says that investing in tech companies is more of Starboard’s breadsticks and butter. It’s dabbled in pharma before but without much success. And when it spots Pfizer’s cratering share price, it wants another shot at the sector. So earlier this year, Starboard starts quietly building up a $1bn stake in the company.

Advertisement

Oliver Barnes
The ambition of Starboard is to make the stock pop, right? They’ve parked $2bn in it. If the stock goes up 20 per cent, they make $200mn, right?

Michela Tindera
The issue is Oliver says that there’s not much Starboard can do to really pop that share price up any more. Bourla has already taken a lot of the steps that an activist would typically come in and do.

Oliver Barnes
The kind of questions or doubts everyone’s had about Pfizer having activists, like, what levers are there to pull in Pfizer. The typical kind of playbook and tactics of an activist are not really there with Pfizer. So to go through a couple obvious examples, activists often call for divestitures where you go, you’ve got this division, sell it off. Investors will like it. You’ll make money out of it. Pfizer’s basically done all its divestitures.

Then investors might say, we either block or encourage you to do acquisitions. The Seagen acquisition’s closed. They can’t block it. They can’t unwind it. Pfizer has a very high debt level. It spent most of the Covid money. It can’t go and do more acquisitions. So that avenue is kind of closed off, too. And then maybe Starboard can outline a plan of how Pfizer can basically do better in terms of, like, costs. But they’ve done a 5.5 or outlined a $5.5bn cost-cutting drive over the past couple of years, which runs through to 2027. So that’s kind of been done, too.

Advertisement

Michela Tindera
But Oliver and Maria’s sources have told them that Starboard sees Pfizer CEO Bourla and his acquisition spree as the problem.

Oliver Barnes
When you kind of read the tea leaves, it leaves you to one place, right? Maybe Starboard’s target in this is the man himself — the CEO.

Michela Tindera
Now, remember, Starboard doesn’t have loads of experience investing in pharmaceutical companies. And that means it could be a tough sell to come in as an activist and propose big structural changes to Pfizer. So while it’s building up the stake, Starboard also starts building up its campaign’s credibility by recruiting two key people.

Maria Heeter
They were lucky to enlist the help of two of Pfizer’s longest-serving executives who had left the company. That’s Ian Read and Frank D’Amelio. Ian Read was the longtime CEO of Pfizer who actually gave Albert Bourla his job, and Frank D’Amelio was the company’s chief financial officer. Being able to tap the resources of two former longtime pharmaceutical executives gave them a lot of leverage. It’s a sign to the board and to investors and to the management team that something needs to change at Pfizer if two of its longest-serving former executives are unhappy with how the company has performed.

Advertisement

Michela Tindera
These are also two people, Read and D’Amelio, who Albert Bourla really seems to think highly of.

Oliver Barnes
Reading through Albert Bourla’s book Moonshot, which is his kind of reminiscence on what happened during the pandemic, he calls Ian Read a man of strong convictions from whom I learned a lot. And he says of Frank D’Amelio, he’s a long-standing and highly regarded chief financial officer who likes to roll up his sleeves and problem-solves. These are like out-and-out compliments.

Michela Tindera
Now, at this point, as Starboard is building up its stake and getting these former execs involved. The CEO, Albert Bourla, has no idea of Starboard’s plans until he sees that blank email. (Email alert bleeps) So let’s go back to that moment a few weeks ago on Sunday, October 6th.

Oliver Barnes
What I think the biggest jolt for him is when he receives that email is that his former finance chief has turned on him, right?

Advertisement

Michela Tindera
Just moments after the email lands in Bourla’s inbox, Read and D’Amelio realise what happened and start damage control. They both call up Bourla and they urge him to hear Starboard out.

Oliver Barnes
And I’m sorry, for anyone on a human level, that is the most extraordinary gut punch, right? The guy who was your predecessor then turns round a few years later and is, like, the way you’ve run the company is so bad that I’m now working with an activist investor who’s going to call for a shake-up of it.

Michela Tindera
Scale of one to five, five being the worst, how bad is this situation?

Oliver Barnes
Six. (Chuckles) You know what I mean? Like, it’s crazy, isn’t it? Basically their former colleagues have turned on them.

Advertisement

Michela Tindera
But within a few days, a lot unravels. By Wednesday . . . 

Oliver Barnes
Frank D’Amelio and Ian Read put this statement out, basically saying, we’re not backing Starboard. We’re actually backing Albert Bourla, his management and the board. And everyone’s like, what?

Michela Tindera
Yeah, exactly. What?

Oliver Barnes
In Starboard’s telling, an unnamed representative from Pfizer threatened to sue Read and D’Amelio. Starboard says that they offered to cover their legal fees, but they still dropped out of the campaign.

Advertisement

Michela Tindera
So that’s what Starboard says happened. And Read and D’Amelio haven’t made any kind of public statements since they decided to change sides back to Bourla. So it’s tough to say exactly what made them switch. But one thing is clear: this decision really dents Starboard’s chances for a successful campaign. Having two former executives on their side really gave them a lot of firepower. And without it, Starboard could be back to square one.

Coming up, we’ll look at Starboard’s next move and what this could mean for Albert Bourla.

[SWAMP NOTES PODCAST AD PLAYING]

Michela Tindera
So last we heard, these two ex Pfizer executives, Ian Read and Frank D’Amelio, have pulled their support for Starboard and are backing Bourla in his fight. So Maria, if we’re to take stock of this situation right now, walk me through just like how bad is this for Starboard that their plan was revealed early in basically a fat-fingered email.

Advertisement

Maria Heeter
Activists benefit, I think, from surprise and also from preparation. So the company is usually at the back foot. They’re learning about the stake sometimes through a story in the Financial Times, sometimes in a presentation. And the company sort of typically, like, scrambles to respond. In this case, Frank D’Amelio’s fat-fingered email, which was sent to Albert Bourla, gave the company a chance to sort of mount its defences. Now executives at Pfizer have been able to tap advisers like investment bankers or lawyers to strategise on how to sort of stymie Starboard’s involvement.

Michela Tindera
But despite losing Read and D’Amelio’s support, Starboard is still pushing ahead with its campaign. Yesterday, October 22nd, at an activist investor conference in New York, Starboard went ahead and officially presented their plan for Pfizer. So, Oliver, what happened at this meeting?

Oliver Barnes
So basically, all the great and the good of the activist investment world got together at the Pierre Hotel, which is like a plush, old-timey hotel just off Central Park. And the headline act was Jeff Smith, the chief executive and chief investment officer of Starboard. And in his 40-minute or so speech, what Smith outlined was how — in quite acute detail — was how under the tenure of Dr Bourla, Pfizer had failed to deliver on turning many of its experimental drugs into blockbusters, drugs that generate more than $1bn in revenue, and also its R&D spending and spending on M&A had failed to yield revenues and growth in a way that other peers have managed to do. And there was one particularly striking line in the presentation where he calls on management and the board to do something different. He says he thinks it was unlikely that Pfizer would be able to reverse its declining revenues and languishing performance. Effectively, I think he’s basically saying, let’s think about the CEO and whether he should still be in his job.

Michela Tindera
Oliver, you already mentioned that the company’s made a lot of the changes that activists typically try to do to raise the share price. I mean, you know, cost-cutting, divestitures. So what sort of impact is this presentation going to have on the success of this campaign?

Advertisement

Oliver Barnes
What happens next is not ultimately down to Jeff Smith, Starboard, even Albert Bourla. It’s about the 13 other board directors of Pfizer who now are going to be thinking in their private moments about whether Dr Bourla is the guy to carry this company forward and give it a post-pandemic future. And maybe Starboard’s gamble is that them coming out and putting pressure on Pfizer’s management gives some of those board members, if they are discontented with Dr Bourla, the cover to make that known.

Michela Tindera
Now, we mentioned that Starboard hasn’t run loads of activist campaigns on other pharmaceutical companies. How much of a difference does that kind of experience make and just how all this could turn out?

Oliver Barnes
Starboard’s most high-profile campaign in pharma was trying to block Bristol Myers Squibb’s $74bn acquisition of Celgene, but ultimately that case ended up failing and the acquisition happened. They did, however, still make money and there’s a lesson in that, right, which is that maybe the asks that Starboard has for Pfizer don’t come through, but they may still end up making money out of the position, right?

Michela Tindera
Yeah. So it’s like . . . 

Advertisement

Oliver Barnes
If it’s successfully done. 

Michela Tindera
. . . these activists. Yeah, their bottom-line goal is to make money, get a return, get the share price to go up in some way. One would think the way to do that would be to make strategic changes to the company. But if they don’t do that, it can still work out for the activists.

Oliver Barnes
It can still work out, yeah. Like if they get the stock to move in a positive direction, it could still work out. And it’ll be interesting to watch because maybe they see it as, let’s just throw everything at it and like that means it could get even more acrimonious.

Michela Tindera
Right. But why is it that activist campaigns and pharma seemed to just not gel so well together?

Advertisement

Oliver Barnes
So this is maybe one of the issues why, like activism struggles in pharma, right, is because pharma relies on this thing called science. And science is tricky and there’s failures in it and stuff like that. And that’s one of the things the Starboard contends with in its campaign against Pfizer, right? Which is that Pfizer and all these drugmakers work off the basis of making bets on science, putting money towards science, whether that’s through R&D or whether that’s through going and buying biotechs. And, you know, Starboard might have like an eye for the detail, they might have one of the best constructed decks ever and it might be perfectly worded and written, but they don’t determine whether or not a drug works in clinical trials or not.

Michela Tindera
You know, I have to admit, I mean, it’s pretty wild to hear that this guy, Albert Bourla, whose company and vaccines basically helped the world restart during Covid and prevented loads of deaths, is just a few years later being targeted like this. I mean, what have your sources said about this? I mean, it feels a bit like a Shakespearean tragedy.

Oliver Barnes
It is a bit tragic. I mean, there’s one thing getting activists, there’s another thing getting an activist who is collaborating with the guy who hired you. But, you know, the guys managed to make it to the top of one of the world’s biggest drugmakers. He played this huge front foot forward role during the pandemic. The guy likes a fight. He likes strategy. So one would expect that, like, you know, despite the kind of personal dynamics and complications involved in all of this, he is going to rise to whatever kind of challenge Starboard presents him and try and find a route through it. And that route through it might be closing the door on them and saying, we’re not listening to you. That might be trying to find a settlement that like is a compromise between the two parties and draws a line under this quickly. But yeah, it’s not the last we’ve heard from him.

[MUSIC PLAYING]

Advertisement

Michela Tindera
Behind the Money is hosted by me, Michela Tindera. Saffeya Ahmed is our producer. Sound design and mixing by Sam Giovinco and Joseph Salcedo. Special thanks to Dan Stewart. Topher Forhecz is our executive producer. Cheryl Brumley is the global head of audio. Original music is by Hannis Brown. Thanks for listening. See you next week.

[MUSIC PLAYING]

Source link

Advertisement
Continue Reading

Business

When is Muhurat trading 2024? Dalal Street to mark Samvat 2081 with special Diwali session- The Week

Published

on

When is Muhurat trading 2024? Dalal Street to mark Samvat 2081 with special Diwali session- The Week

The Hindu accounting year, Samvat, begins with Diwali every year and the Indian equity markets hold muhurat trading to mark the auspicious occasion.

When is Muhurat trading 2024?

This year Diwali falls on November 1 and hence the one-hour muhurat trading session will be held on the same day to mark the new year, Samvat 2081. 

ALSO READ: Why are gold prices hitting new all-time highs?

Advertisement

The one-hour symbolic session is finalised based on planetary positions and is believed to bring good fortune. This happens when the ritual of Laxmi Pujan is carried out to celebrate prosperity. Investors buy stocks as a token to mark new beginnings and usually don’t make serious investments. 

The tradition of Muhurat trading began on the Bombay Stock Exchange (BSE) in 1957. The National Stock Exchange (NSE) picked up the tradition in 1992 when the exchange was founded.

ALSO READ: Slow sales growth in the festive season dampens two-wheeler market sentiment

The session will have various segments, beginning with a 15-minute block deal session when traders commit to buying or selling stocks at a fixed price and report it the exchange. This will be followed by a pre-market session of 15-minute duration.

Advertisement

The main trading session will last for one hour. During this window, call auction will also be held for the transaction of illiquid securitues. The main window will be followed by the closing session when investors are allowed to place orders at the closing price.

Both BSE and NSE are yet to make an official announcement regarding the timings of the session.

Source link

Advertisement
Continue Reading

Trending

Copyright © 2024 WordupNews.com