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8001b37caa0a5f714c1b633ddccf4bb7 | https://www.reuters.com/article/us-johnson-johnson-bayer-xarelto-idUSKCN12B2A9 | FDA clears Xarelto blood thinner despite faulty trial device | FDA clears Xarelto blood thinner despite faulty trial device
By Reuters Staff2 Min Read
A view shows the U.S. Food and Drug Administration (FDA) headquarters in Silver Spring, Maryland August 14, 2012. REUTERS/Jason Reed/File Photo
(Reuters) -
The U.S. Food and Drug Administration on Tuesday said it has determined the widely-used blood thinner Xarelto to be safe and effective for patients with the heart condition atrial fibrillation after serious doubts arose over the major study used to gain approval of the drug.
Xarelto, known chemically as rivaroxaban, won U.S. approval in 2011 after it was shown to be a safe and effective alternative to decades old warfarin for preventing strokes in a study of more that 14,000 patients with the irregular heartbeat condition. Without treatment, atrial fibrillation leaves patients five times more vulnerable to strokes.
In the study dubbed Rocket-AF, warfarin therapy was monitored using the Alere Inc INRatio device that has since been recalled over its potential to generate inaccurate results, casting a shadow over the value of the large, pivotal clinical trial.
“The FDA has completed a variety of analyses to assess the impact that this faulty monitoring device had on the Rocket-AF study results,” the agency said in a statement posted on its website. “The Agency has determined that effects on strokes or bleeding, including bleeding in the head, were minimal.”
Xarelto, a multibillion-dollar product, is sold by Bayer AG overseas and by Johnson and Johnson in the United States. It is the market leader in a popular new class of medicines designed to replace problematic warfarin, which requires a special diet and regular monitoring to make sure dosing remains within a limited therapeutic range to keep it from becoming either too low, which increases stroke risk, or too high, which greatly raises the risk of serious bleeding.
Warfarin, a widely used and inexpensive generic medicine, is also sold by Bristol-Myers Squibb under the brand name Coumadin. Bristol-Myers and Pfizer also sell the Xarelto rival Eliquis.
Our Standards: The Thomson Reuters Trust Principles.
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44f888309bf82e5817f049abd2bf6ca8 | https://www.reuters.com/article/us-johnson-johnson-cancer-britain-idUSKCN0WN0UP | UK cost agency backs J&J cancer drug in change of heart | UK cost agency backs J&J cancer drug in change of heart
By Reuters Staff2 Min Read
LONDON (Reuters) - A cancer drug originally discovered in Britain has finally been endorsed for treating advanced prostate cancer before chemotherapy on the country’s state health service in a change of heart by the cost agency NICE.
The National Institute for Health and Care Excellence (NICE) said on Monday it was now recommending Zytiga, which is sold by Johnson & Johnson, following the submission of new evidence on the drug’s benefits.
The current list price of Zytiga is 2,930 pounds ($4,217) for 120 tablets and NICE said this was expected to fall to 2,300 by the time its final guidance was published. J&J has also agreed to rebate the cost of any tablets needed beyond 10 months of treatment.
Paul Workman, chief executive of the Institute of Cancer Research in London, whose scientists discovered the medicine, said the latest NICE decision was good news but he criticized the agency for a three-year delay in reaching the verdict.
“The answer today is the right one, but I would urge NICE to implement the planned overhaul of its drug appraisal processes as soon as possible to avoid repeated delays in getting the best, most innovative treatments to patients,” Workman said.
Reporting by Ben Hirschler, editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.
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1f454173c76be3c375f47ca28ef57cc4 | https://www.reuters.com/article/us-johnson-johnson-cancer-india/jj-resumes-production-of-baby-talc-in-india-after-tests-find-no-asbestos-idUSKCN1QH1PD | J&J resumes production of baby talc in India after tests find no asbestos | J&J resumes production of baby talc in India after tests find no asbestos
By Krishna N. Das, Aditya Kalra2 Min Read
FILE PHOTO: Bottles of Johnson & Johnson baby powder line a drugstore shelf in New York October 15, 2015. REUTERS/Lucas Jackson/File Photo
NEW DELHI (Reuters) - Johnson & Johnson has resumed production of its baby powder at plants in India after government tests found no asbestos in the product, the company said on Thursday.
“Johnson & Johnson has resumed production of its Johnson’s Baby Powder at plants in Baddi and Mulund, India, after government sanctioned testing reaffirmed that the product does not contain asbestos,” J&J said in a statement to Reuters.
Reuters reported earlier on Thursday that the federal regulator had not found any asbestos in the company’s talc, citing sources familiar with the matter.
The federal regulator and its counterparts in Indian states launched an investigation into J&J’s Baby Powder following a Reuters report in December that the firm knew for decades that cancer-causing asbestos could be found in the product.
J&J has described the Reuters article as “one-sided, false and inflammatory”.
The Indian regulator wrote to the U.S. company in December asking it to stop using the “huge quantities” of raw materials stocked in its plants in northern and western India until test results proved they were free of asbestos.
“In recent months, regulatory authorities from Singapore, Thailand, Saudi Arabia, Jordan, Kuwait, and Egypt have also reaffirmed the purity of Johnson & Johnson’s talc,” J&J said.
Reporting by Krishna N. Das and Aditya Kalra; Writing by Sudarshan Varadhan; Editing by Sanjeev Miglani and Jan HarveyOur Standards: The Thomson Reuters Trust Principles.
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d342660b9280f3d90a59b39b00879f30 | https://www.reuters.com/article/us-johnson-johnson-cancer-lawsuit-analys-idUSKCN1B22HQ | Massive California verdict expands J&J's talc battlefield | Massive California verdict expands J&J's talc battlefield
By Tina Bellon4 Min Read
NEW YORK (Reuters) - A massive California verdict in a lawsuit alleging Johnson & Johnson's JNJ.N talc-based products cause cancer has opened a new front in the litigation, upending the company's hopes that the cases were only gaining traction in Missouri, legal experts said.
FILE PHOTO: A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, in this image taken February 24, 2016. REUTERS/Shannon Stapleton/File Photo
The $417 million award by California jury to a California resident suggested so-called forum-shopping, in which parties seek to file cases in whichever jurisdictions seem most favorable, may not be the main problem facing J&J as it wrestles with some 4,800 outstanding talc lawsuits.
J&J, which denies any link between talc and cancer, said in a statement it would appeal Monday’s verdict but declined further comment.
That verdict was more than the sum of all the previous talc awards, which totaled $307 million and were meted out by juries in the same state court in St. Louis, Missouri, in cases filed by out-of-state residents. A fourth of talc lawsuits nationally were brought in St. Louis after the first large verdicts there.
J&J has cast the St. Louis court as overly plaintiff-friendly and has focused on getting the cases brought by out-of-state plaintiffs dismissed.
“This has very much been about forum shopping,” Howard Erichson, a professor at Fordham School of Law, said about the talc trials. “The fact that there has been a big verdict in California is definitely interesting.”
Monday’s verdict in Los Angeles Superior Court came in a case involving a 63-year-old woman who claimed she developed ovarian cancer from using Johnson’s Baby Powder for feminine hygiene since childhood.
Corporations have long fought against plaintiffs filing lawsuits in courts favorable to them, and a U.S. Supreme Court ruling in June delivered them a big victory, holding that state courts cannot hear claims against companies not based in the state when the alleged injury did not occur there.
J&J appeared to be an immediate beneficiary of that ruling, which a St. Louis judge cited in declaring a mistrial in a talc case involving two out-of-state women.
The company also said it believed the Supreme Court decision required the reversal of the four St. Louis verdicts.
But legal experts said the verdict in the California case, in which venue was not an issue, could shift the focus back to the evidence.
J&J shares did not react to the verdict. The company has so far not announced a litigation reserve for talc cases and analysts have said they would not be concerned until that happened.
The first talc award against J&J was handed down in St. Louis state court in February 2016, with the jury ordering J&J to pay $72 million.
The company prevailed in only one of the four talc trials that followed in the same court, with the other verdicts ranging from $55 million to $110 million.
The company has decried the St. Louis court for allowing plaintiffs to present expert testimony linking talc products with cancer that the company contends is speculative and scientifically unsound. It has appeals pending on those grounds.
J&J has contrasted the Missouri court’s stance to a New Jersey state court ruling in September 2016 that disqualified plaintiffs’ experts, leading to the dismissal of two talc cases. The plaintiffs’ appeal of that ruling is pending.
The Los Angeles judge allowed the testimony of some of the same plaintiffs’ experts as in St. Louis.
The California jury seemed to react similarly to the evidence, said Diane Lifton, a defense lawyer not involved in the talc case.
“Something clearly inflamed the jury again,” she said.
Nathan Schachtman, a product liability defense lawyer, said the California verdict showed that, venue issues aside, the evidence against J&J was compelling.
“I think it’s a tough case for the defense,” he said.
Reporting by Tina Bellon; Editing by Anthony Lin and Meredith MazzilliOur Standards: The Thomson Reuters Trust Principles.
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3fd0565909b3d797c268f31722a5f9ef | https://www.reuters.com/article/us-johnson-johnson-cancer-lawsuit/missouri-appeals-court-tosses-55-million-jj-talc-powder-verdict-idUSKBN1JP30Y?feedType=RSS&feedName=healthNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FhealthNews+%28Reuters+Health+News%29 | Missouri appeals court tosses $55 million J&J talc-powder verdict | Missouri appeals court tosses $55 million J&J talc-powder verdict
By Tina Bellon3 Min Read
(Reuters) - A Missouri appeals court on Friday threw out a $55 million verdict against Johnson & Johnson in a lawsuit by a woman who claimed she developed ovarian cancer after using talc-based products, including J&J’s baby powder, citing a U.S. Supreme court ruling on where such cases can be brought.
FILE PHOTO: A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS/Mike Segar/Illustration
South Dakota resident Gloria Ristesund had been awarded $5 million in compensatory damages and $50 million in punitive damages in the 2016 verdict.
She alleged that her decades-long use of J&J talc-based products for feminine hygiene caused her cancer, and that the company had failed to warn consumers about the risks.
J&J denied the allegations, saying decades of testing have shown its cosmetic talc-based products to be safe.
The healthcare conglomerate is battling some 9,000 cases claiming its talc-based products cause ovarian cancer and, in some cases, mesothelioma, a rare cancer closely linked to asbestos exposure, amid allegations the products were contaminated with asbestos fibers. J&J has said its talc products do not contain asbestos or cause any form of cancer.
The unanimous three-judge panel of the Missouri Court of Appeals in the Eastern District, in overturning the verdict, did not rule on the merits of the allegations.
The judges instead said the verdict could not stand following a 2017 U.S. Supreme Court decision that limits where companies can be sued for personal injuries.
The high court ruled that state courts cannot hear claims against companies that are not based in the state or when the alleged injuries did not occur there.
J&J is based in New Jersey and Ristesund exclusively purchased and used the company’s talc products in South Dakota and Minnesota, according to court records.
J&J, in a statement, said it was extremely pleased with the court’s decision to recognize that the trial should have never occurred.
Ristesund’s case was one of more than 60 related talc lawsuits consolidated in Missouri state court, where juries have a reputation for issuing high-paying verdicts. But only one of those cases involved a woman from Missouri, leading many of the cases to be tossed on jurisdictional grounds.
During the appeals process, Ristesund asked the court for permission to present additional evidence tying J&J to Missouri. The judges on Friday rejected her request, saying she had ample opportunity to present such evidence over the past two years.
Reporting by Tina Bellon; Editing by David Gregorio and Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.
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82d347753d67e0e473dbe9f8c96d2223 | https://www.reuters.com/article/us-johnson-johnson-china-tremfya/china-regulator-approves-imports-of-jjs-tremfya-idINKBN1YV0HT?edition-redirect=in | China regulator approves imports of J&J's Tremfya | China regulator approves imports of J&J's Tremfya
By Reuters Staff1 Min Read
FILE PHOTO: The company logo for Johnson & Johnson is displayed on a screen to celebrate the 75th anniversary of the company's listing at the New York Stock Exchange (NYSE) in New York, U.S., September 17, 2019. REUTERS/Brendan McDermid
BEIJING (Reuters) - China has approved imports of Johnson & Johnson’s Tremfya (guselkumab), the National Medical Products Administration said in a notice on Friday.
The drug will be used to treat moderate to severe plaque psoriasis in adults who are suitable for systemic therapy, the administration said.
J&J is positioning Tremfya as a better alternative to Novartis’s Cosentyx as it seeks to take market share away from the treatment, which was launched two years ago and is among the top-selling treatments in the $11 billion global psoriasis market.
Reporting by Roxanne Liu in Beijing and Brenda Goh in Shanghai; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.
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9e69cb583c58daeeb39bb51bccea2da6 | https://www.reuters.com/article/us-johnson-johnson-idorsia/johnson-johnsons-cilag-to-sell-up-to-11-8-million-idorsia-shares-idUKKBN2492K4?edition-redirect=uk | Johnson & Johnson's Cilag to sell up to 11.8 million Idorsia shares | Johnson & Johnson's Cilag to sell up to 11.8 million Idorsia shares
By Reuters Staff1 Min Read
FILE PHOTO: A Johnson & Johnson building is shown in Irvine, California, U.S., January 24, 2017. REUTERS/Mike Blake/File Photo
ZURICH (Reuters) - Johnson & Johnson's JNJ.N Cilag Holding will offer up to approximately 11.8 million existing ordinary shares in Idorsia Ltd IDIA.S in an accelerated bookbuilding to commence on Wednesday, the transaction's bookrunner said.
The sale corresponds to approximately 8.3% of Swiss drugmaker Idorsia's outstanding ordinary share capital. Goldman Sachs GS.N will act as sole bookruner on the sale.
Reporting by Brenna Hughes Neghaiwi; Editing by Michael ShieldsOur Standards: The Thomson Reuters Trust Principles.
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c6804756156a773ee2e22579e9d4a29b | https://www.reuters.com/article/us-johnson-johnson-microbiome-idUSKBN0KM1CI20150113?feedType=RSS&feedName=healthNews | J&J in deal to develop microbiome drug for bowel diseases | J&J in deal to develop microbiome drug for bowel diseases
By Reuters Staff2 Min Read
A first aid kit made by Johnson & Johnson for sale on a store shelf in Westminster, Colorado April 14, 2009. REUTERS/Rick Wilking
(Reuters) - Johnson & Johnson on Tuesday announced a licensing deal with Vedanta Biosciences to develop the privately held company’s lead microbiome-based drug candidate for inflammatory bowel disorders, such as Crohn’s disease and ulcerative colitis.
J&J said Vedanta will receive an undisclosed upfront payment and would be eligible to receive up to $241 million for achieving development and commercial milestones.
In preclinical studies, the drug, VE202, showed signs of efficacy in models of autoimmune disease, J&J said.
The human microbiome is an ecosystem of trillions of bacteria and microorganisms that live in the gut and elsewhere and are believed to play an important role in regulating metabolism, the immune system and other critical functions.
“The human microbiome is a strategic area of research and development and we have formed a number of exciting biotech and academic collaborations in this promising scientific space,” Sue Dillon, head of immunology research and development for J&J’s Janssen unit, said in a statement.
The Crohn’s disease market is expected to increase to $4.5 billion by 2020 and the ulcerative colitis market to $4.2 billion by 2023 in the United States, Japan and the five largest European markets, according to forecasts by Decision Resources.
Inflammatory bowel diseases affect about 1.4 million people in the United States, according to the Crohn’s and Colitis Foundation of America.
J&J already sells biotech drugs approved for ulcerative colitis and Crohn’s with its Simponi and Remicade.
The company said it may elect to develop the Vedanta drug for additional uses with similar terms to the bowel disease deal.
Reporting by Bill Berkrot; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.
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c7eb84ecd744c919cd3f112619151c62 | https://www.reuters.com/article/us-johnson-johnson-opioid-ohio/jj-to-pay-20-4-million-to-settle-opioid-lawsuits-with-two-ohio-counties-idUSKBN1WH00F | Johnson & Johnson settles Ohio lawsuits to avoid federal trial | Johnson & Johnson settles Ohio lawsuits to avoid federal trial
By Shubham Kalia3 Min Read
(Reuters) - Johnson & Johnson said on Tuesday it will pay $20.4 million to settle claims by two Ohio counties, allowing the U.S. healthcare giant to avoid an upcoming federal trial seeking to hold the industry responsible for the nation’s opioid epidemic.
J&J became the fourth drugmaker to settle claims ahead of the Federal Court trial against multiple manufacturers and distributors in Cleveland scheduled for later this month. The case is considered a bellwether for more than 2,600 lawsuits by state and local governments that are pending nationally.
“The settlement allows the company to avoid the resource demands and uncertainty of a trial as it continues to seek meaningful progress in addressing the nation’s opioid crisis,” J&J said in a statement.
“The company recognizes the opioid crisis is a complex public health challenge and is working collaboratively to help communities and people in need,” it added.
Opioids were involved in 400,000 overdose deaths in the United States from 1999 to 2017, according to the U.S. Centers for Disease Control and Prevention.
J&J which formerly marketed the painkillers Duragesic and Nucynta, said the settlement includes no admission of liability.
The company will pay $10 million to Cuyahoga and Summit counties, reimburse $5 million of their legal and other expenses and provide $5.4 million to non-profit organizations that run opioid-related programs in the counties.
Mallinckrodt Plc finalized a $24 million settlement with the same two counties on Monday. Endo International Plc and Allergan Plc also settled with the two counties in August to avoid going to trial.
The remaining defendants in the Oct. 21 federal trial include McKesson Corp, AmerisourceBergen, Cardinal Health, Teva Pharmaceutical Industries Ltd, Walgreens Boots Alliance Inc and Henry Schein Inc.
OxyContin maker Purdue Pharma LP succumbed to pressure from the lawsuits and filed for bankruptcy protection in September.
Some plaintiffs’ lawyers have compared the opioid cases to litigation by states against the tobacco industry that led to a $246 billion settlement in 1998.
Earlier in the year, an Oklahoma judge ordered Johnson & Johnson to pay $572.1 million to the state for its part in fueling an opioid epidemic by deceptively marketing addictive painkillers.
Purdue Pharma and Teva had settled claims by Oklahoma’s attorney general for $270 million and $85 million, respectively.
Our Standards: The Thomson Reuters Trust Principles.
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06410c4e42a67f1581965cd5cdc23484 | https://www.reuters.com/article/us-johnson-johnson-results/johnson-johnson-raises-2016-forecast-shares-touch-record-high-idUSKCN0ZZ15V | Johnson & Johnson raises 2016 forecast, shares touch record high | Johnson & Johnson raises 2016 forecast, shares touch record high
By Natalie Grover, Susan Kelly3 Min Read
(Reuters) - Johnson & Johnson JNJ.N on Tuesday raised its full-year 2016 sales and earnings forecasts and reported quarterly results that beat estimates, helped by strength in its prescription drugs business.
Bottles of Johnson & Johnson baby lotion line a drugstore shelf in New York October 15, 2015. REUTERS/Lucas Jackson/File Photo
Shares of the diversified healthcare products maker rose 1.6 percent at $125.06 on the New York Stock Exchange after touching a new record high of $125.75.
Analysts said the overall results bode well for J&J shares. “... We expect today’s results to drive further upside and, given investor preference for safer names with good dividend yields in the current market environment, we think it bodes well for the stock over the near term,” said Credit Suisse analyst Vamil Divan.
Strong demand for the company’s Imbruvica cancer drug and Xarelto blood thinner boosted pharmaceutical sales, which jumped 8.9 percent to $8.7 billion in the quarter. Sales of autoimmune drug Remicade, J&J’s biggest product, rose 6.7 percent to $1.78 billion.
The company, which is the first major U.S. drugmaker to announce quarterly earnings, raised its 2016 sales forecast to a range of $71.5 billion to $72.2 billion, from $71.2 billion to $71.9 billion previously.
J&J expects sales to grow at a faster rate than the global healthcare market, which it sees increasing by 3 percent to 5 percent annually over the next five years, Chief Executive Officer Alex Gorsky said on a conference call.
The maker of a variety of products from Tylenol to Band-Aid bandages to Acuvue contact lenses also increased its adjusted profit range to $6.63 to $6.73 per share, from $6.53 to $6.68.
Investors have been concerned about potential competition to Remicade in the United States. U.S regulators earlier this year approved Inflectra, a cheaper version developed by Celltrion Inc 068270.KQ and Pfizer Inc PFE.N, but a patent battle between J&J and Celltrion has delayed its introduction.
J&J said its sales outlook assumes no new U.S. competition for Remicade in 2016.
New Jersey-based J&J is also restructuring its medical device business to focus on areas such as artificial knees and devices for trauma surgery.
Worldwide device sales inched up about 1 percent to $6.4 billion in the quarter, buoyed by higher demand for its advanced surgery products. Growth in its devices business was roughly in line with the market, the company said.
Total revenue rose 3.9 percent to $18.5 billion.
Net earnings fell to $3.997 billion, or $1.43 per share, from $4.516 billion, or $1.61 per share.
Excluding special items, J&J earned $1.74 per share.
Analysts, on average, expected profit of $1.68 per share on revenue of $17.98 billion, according to Thomson Reuters I/B/E/S.
Up to Monday’s close, J&J’s stock had gained about 20 percent this year.
Reporting by Natalie Grover in Bengaluru; Additional reporting by Susan Kelly in Chicago; Editing by Sriraj Kalluvila and Jeffrey BenkoeOur Standards: The Thomson Reuters Trust Principles.
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8ca337c13c0f2a1f6b7013c7ed42c0bb | https://www.reuters.com/article/us-johnson-johnson-study/jj-scraps-late-stage-study-testing-stelara-for-lupus-idUKKBN23X1OX?edition-redirect=uk | J&J scraps late-stage study testing Stelara for lupus | J&J scraps late-stage study testing Stelara for lupus
By Reuters Staff1 Min Read
(Reuters) - Johnson & Johnson’s Janssen unit said on Friday it would discontinue a late-stage study testing its psoriatic arthritis drug Stelara as a treatment for lupus as it was not found to be effective against the auto-immune disease.
Systemic Lupus Erythematosus, or lupus, causes inflammation in connective tissues, such as cartilage and the lining of blood vessels.
A second late-stage study to be conducted in China was planned but will not start given this decision, the company said.
Stelara, which blocks two inflammation-causing proteins IL-12 and IL-23, is one of J&J’s largest revenue generators, bringing in sales of about $1.82 billion in first quarter this year.
The drug is approved in the United States to treat the skin condition scaly plaque psoriasis, a type of arthritis associated with psoriasis and Crohn’s disease.
Reporting by Manojna Maddipatla and Dania Nadeem in Bengaluru; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.
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7dfa70e6287ad0427b051e9238cd9c6b | https://www.reuters.com/article/us-johnson-johnson-talc-cancer-idUSKCN0VZ1JS | Big verdict doesn't assure more wins for plaintiffs in talc-cancer cases | Big verdict doesn't assure more wins for plaintiffs in talc-cancer cases
By Jessica Dye5 Min Read
NEW YORK(Reuters) - The $72 million verdict this week against Johnson & Johnson JNJ.N in a U.S. case alleging links between talc-based powder and ovarian cancer has prompted global headlines, social media buzz and calls to lawyers from would-be plaintiffs.
A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS/Shannon Stapleton/Illustration
But the attention-grabbing judgment is no guarantee future plaintiffs will be able to convince juries the company’s products caused their illnesses.
About 1,200 similar cases are pending, primarily in Missouri and New Jersey state courts, but the facts are different in every one.
And even in cases with similar evidence and expert testimony, juries in mass personal-injury litigation can
come to different conclusions.
While the survivors of Jacqueline Fox were awarded $72 million by a St. Louis jury Monday, jurors in a federal court action in South Dakota - the only other talc case to go to trial - found in 2013 that J&J had been negligent but declined to award damages to plaintiff Deane Berg.
Like Fox, Berg alleged her ovarian cancer was caused by her decades-long use of J&J’s talc-powder products for feminine hygiene, and jurors in both cases heard testimony about studies linking talc to cancer risks.
But, unlike Fox, who passed away several months before the trial began, Berg was in remission at the time of the trial, according to court documents.
In addition to factual differences among cases, venue can affect outcomes. Some state courts are considered more plaintiff-friendly than federal courts, which have stricter rules for the admission of evidence and expert testimony, said lawyers involved in the litigation.
One juror in the Missouri case, Jerome Kendrick, said in an interview with Reuters that he and other jurors were especially swayed by testimony from plaintiffs’ medical experts and documents showing J&J employees discussing talc powder’s possible cancer risk.
“The problem I had is that, according to inter office documents, J&J was aware of the potential concerns,” Kendrick said. “And it really looked like instead of trying to investigate, they started talking about how to combat what would eventually be a court case.”
J&J has said that “decades of sound science” prove that talc is safe. The company on Tuesday issued a statement expressing sympathy for Fox’s family but disagreeing with the verdict. It also said it is exploring its post-trial options.
UNDER THE RADAR
Talc litigation got its start in 2009, when Berg filed her lawsuit. The Fox lawsuit was selected by plaintiffs’ lawyers as the first to go to trial in Missouri, to serve as an early bellwether of how similar cases in that venue might fare.
The litigation flew largely under the public’s radar until jurors returned the award for the family of Fox, who died in October at 62. The plaintiffs said Fox used J&J Baby Powder and Shower to Shower Powder for feminine hygiene daily for 35 years before she was diagnosed three years ago with ovarian cancer.
It has resonated with the public far more than the Berg case, which “didn’t get headlines because they didn’t award any damages,” said R. Allen Smith, a Missouri-based lawyer who represented both the Fox family and Berg.
More cases may be filed soon, and lawyers at several plaintiffs’ firms who worked on the Fox case said they are investigating thousands of additional claims.
Still, the talc cases represent a relatively small portion of the tens of thousands of lawsuits J&J is facing over its many products. For instance, it is the target of more than 44,000 cases from women who say they were harmed by pelvic mesh devices made by its Ethicon unit, and more than 8,000 against its DePuy subsidiary regarding Pinnacle metal-on-metal hip systems.
The next J&J talc trial is set for April in St. Louis, and additional trial dates have been set for later this year.
To be successful, plaintiffs must make both a general link between talc and ovarian cancer and show that J&J’s products - as opposed to something else - are to blame for their cancer.
In spite of the increased interest in the litigation following the Fox verdict, attorney Danielle Mason of Beasley Allen, who was part of the team representing the Fox family at trial, said she expected J&J to fight hard to defend itself in upcoming trials. “We’re in this for the long haul,” she said.
Reporting by Jessica Dye; Editing by Alexia Garamfalvi and Lisa GirionOur Standards: The Thomson Reuters Trust Principles.
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cb2751f4406d68a4932abc2614c9865a | https://www.reuters.com/article/us-johnson-johnson-talc-idUSKCN0VX2AP | Social media users concerned over J&J talc powder after verdict | Social media users concerned over J&J talc powder after verdict
By Anjali Athavaley4 Min Read
NEW YORK (Reuters) - Consumers expressed concern on social media about a talc-based baby powder made by Johnson & Johnson on Wednesday after a Missouri jury ordered the company to pay $72 million in damages to the family of a woman who said her death from cancer was linked to use of the product.
“Johnson & Johnson” was a trending term on Twitter on Wednesday morning. Social sentiment regarding the company declined on Wednesday to its lowest levels in the past year, according to a Thomson Reuters social media sentiment analysis index.
J&J shares were down 37 cents at $103.71 in early afternoon trading on the New York Stock Exchange.
In a verdict announced late on Monday night, jurors in the circuit court of St. Louis awarded the family of Jacqueline Fox $10 million of actual damages and $62 million of punitive damages, according to the family’s lawyers and court records.
On Twitter, several users interpreted the verdict to mean there was a causal link between the talc used in J&J’s products and ovarian cancer, an argument made during the trial by the family’s lawyers.
Jenn (@JennLA82) tweeted on Wednesday, “So baby powder caused ovarian cancer & now Johnson & Johnson must pay 72 million. Congrats to those tireless lawyers. Also...scary.”
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On Tuesday, a Johnson & Johnson spokeswoman, Carol Goodrich, said the company believes the safety of cosmetic talc is supported by decades of scientific evidence.
Some Twitter users said they would stop using the product.
DayZ (@D_Acevedo213) tweeted: “If talc is dangerous why is it one of your main ingredients?! @JNJNews I’m not using your baby powder in my son anymore.”
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Not all were alarmed. Shivam M (@Observer68), tweeted: “After Johnson and Johnson’s, I’m waiting for all the women who eat pounds of lipsticks every year, to sue the respective cosmetics brands.”
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Fox, who lived in Birmingham, Alabama, claimed she used the company’s Baby Powder and Shower to Shower for feminine hygiene for more than 35 years before being diagnosed three years ago with ovarian cancer. She died in October at age 62.
A J&J spokesman did not respond immediately to a request for comment on Wednesday.
Additional reporting by Gina Cherelus in New York; Editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
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596c7729b7d041fa121ccda1479565c7 | https://www.reuters.com/article/us-johnson-johnson-talc-ruling-idINKBN27J2N4?edition-redirect=in | Johnson & Johnson fails to overturn $2.12 billion baby powder verdict, plans Supreme Court appeal | Johnson & Johnson fails to overturn $2.12 billion baby powder verdict, plans Supreme Court appeal
By Jonathan Stempel3 Min Read
(Reuters) - Missouri's highest court on Tuesday refused to consider Johnson & Johnson's JNJ.N appeal of a $2.12 billion damages award to women who blamed their ovarian cancer on asbestos in its baby powder and other talc products.
The Missouri Supreme Court let stand a June 23 decision by a state appeals court, which upheld a jury’s July 2018 finding of liability but reduced J&J’s payout from $4.69 billion after dismissing claims by some of the 22 plaintiffs.
Johnson & Johnson said it plans to appeal to the U.S. Supreme Court.
It said the verdict was the product of a “fundamentally flawed trial, grounded in a faulty presentation of the facts,” and was “at odds with decades of independent scientific evaluations confirming Johnson’s Baby Powder is safe, does not contain asbestos and does not cause cancer.”
The New Brunswick, New Jersey-based company also said it will set aside a $2.1 billion reserve for the verdict, to be reflected in its year-end financial results.
Kevin Parker, a lawyer for the plaintiffs, said in a statement: “Johnson & Johnson should accept the findings of the jury and the appellate court and move forward with proper compensation to the victims.”
Johnson & Johnson said in May it would stop selling its Baby Powder talc in the United States and Canada.
Slideshow ( 2 images )
The company said last month it faces more than 21,800 lawsuits claiming that its talc products cause cancer because of contamination from asbestos, a known carcinogen.
In its June decision, the Missouri Court of Appeals said it was reasonable to infer from the evidence that Johnson & Johnson “disregarded the safety of consumers” in its drive for profit, despite knowing its talc products caused ovarian cancer. It also found “significant reprehensibility” in the company’s conduct.
Johnson & Johnson has faced intense scrutiny of its baby powder’s safety following a 2018 Reuters investigative report that found it knew for decades that asbestos lurked in its talc.
Internal company records, trial testimony and other evidence show that from at least 1971 to the early 2000s, J&J's raw talc and finished powders sometimes tested positive for small amounts of asbestos. (here)
Johnson & Johnson shares closed down 19 cents at $138.50 on the New York Stock Exchange.
Reporting by Jonathan Stempel in New York; Additional reporting by Nate Raymond in Boston; Editing by Leslie Adler, Matthew Lewis and Dan GreblerOur Standards: The Thomson Reuters Trust Principles.
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de4bf5bae7b3f30a460de9fc32acd8ea | https://www.reuters.com/article/us-johnson-johnson-talc-target/walgreens-target-remove-all-22-ounce-jj-baby-powder-from-their-shelves-idUKKBN1X41VL?edition-redirect=uk | Walgreens, Target remove all 22-ounce J&J baby powder from their shelves | Walgreens, Target remove all 22-ounce J&J baby powder from their shelves
By Reuters Staff2 Min Read
A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS/Mike Segar/Illustration/File Photo
(Reuters) - Walgreens Boots Alliance Inc and Target Corp on Friday became the latest retailers to remove all 22-ounce bottles of Johnson & Johnson baby powder from their stores, after the healthcare conglomerate recalled some bottles because of possible asbestos contamination.
“Following the national voluntary recall initiated by Johnson & Johnson, Target removed all Johnson & Johnson’s Baby Powder 22-ounce bottles from our stores and Target.com,” the company said.
Kroger Co said on Friday its stores do not carry the product size affected by the voluntary recall.
On Thursday, Walmart Inc, Rite-Aid Corp and CVS Health Corp said they were removing the product from their stores.
J&J, which is facing thousands of lawsuits over a variety of products, said last week it was recalling around 33,000 bottles of baby powder in the United States after U.S. health regulators found trace amounts of asbestos in samples taken from a bottle purchased online.
Asbestos is a known carcinogen that has been linked to deadly mesothelioma.
All product returned to J&J through the recall process – whether the product is from the impacted lot or not – is removed from the marketplace permanently, J&J said on Friday.
Reporting by Aishwarya Venugopal and Manojna Maddipatla in Bengaluru; Editing by Bernard Orr and Maju SamuelOur Standards: The Thomson Reuters Trust Principles.
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160f3505f467ff086d9e10cf5d45653d | https://www.reuters.com/article/us-johnson-johnson-talc-verdict-iduskcn0xt20l | Johnson & Johnson ordered to pay $55 mln in talc-powder trial | Johnson & Johnson ordered to pay $55 mln in talc-powder trial
By Jessica Dye3 Min Read
NEW YORK (Reuters) - Johnson & Johnson JNJ.N was ordered by a U.S. jury on Monday to pay $55 million to a woman who said that using the company’s talc-powder products for feminine hygiene caused her to develop ovarian cancer.
A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS/Mike Segar/Illustration -
The verdict, which J&J plans to appeal, was the second straight trial loss for the company, which is facing about 1,200 lawsuits accusing it of not adequately warning consumers about its talc-based products’ cancer risks.
Following a three-week trial in Missouri state court, jurors deliberated for about a day before returning a verdict for Gloria Ristesund. She was awarded $5 million in compensatory damages and $50 million in punitive damages.
J&J spokeswoman Carol Goodrich said the verdict contradicted 30 years of research supporting the safety of cosmetic talc. The company intends to appeal and will keep defending its products’ safety, she said.
Ristesund said she used J&J’s talc-based powder products – which include the well-known Baby Powder and Shower to Shower Powder – on her genitals for decades. According to her lawyers, she was diagnosed with ovarian cancer and had to undergo a hysterectomy and related surgeries. Her cancer is now in remission.
Jere Beasley, whose firm represents Ristesund, said his client was gratified with the verdict. The jury’s decision should “end the litigation” and compel J&J to settle the remaining cases, he said.
J&J shares were down 18 cents in after-hours trading to $112.57.
The verdict followed a $72 million jury award from the same court in February to the family of a woman who died from ovarian cancer after years of using talc powder for feminine hygiene.
That verdict, which J&J is appealing, sparked renewed interest in talc-powder lawsuits among plaintiffs’ lawyers, as well as consumers familiar with J&J’s powder products. But scientists have told Reuters the evidence of a real danger is inconclusive.
Plaintiffs in talc litigation, which is concentrated in Missouri and New Jersey state courts, have accused J&J of failing for years to warn that talc was linked to an increased risk for ovarian cancer. J&J has said it acted properly in developing and marketing the products.
The only other case to be tried involving talc powder and ovarian cancer resulted in a mixed verdict in South Dakota federal court in 2013. While those jurors found J&J was negligent, they awarded no damages to the plaintiff, whose cancer was in remission at the time of the trial.
Reuters viewed the proceedings on Courtroom View Network.
Our Standards: The Thomson Reuters Trust Principles.
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fed71f4e1965aee7de2dd4f0fd1af88a | https://www.reuters.com/article/us-johnson-johnson-talc/jj-recalls-33000-bottles-of-baby-powder-as-fda-finds-asbestos-in-sample-idINKBN1WX1L3?edition-redirect=in | J&J recalls 33,000 bottles of baby powder as FDA finds asbestos in sample | J&J recalls 33,000 bottles of baby powder as FDA finds asbestos in sample
By Julie Steenhuysen, Lisa Girion7 Min Read
(Reuters) - Johnson & Johnson said on Friday it is recalling around 33,000 bottles of baby powder in the United States after U.S. health regulators found trace amounts of asbestos in samples taken from a bottle purchased online.
J&J shares fell more than 6% to close at $127.70.
The move marks the first time the company has recalled its iconic baby powder for possible asbestos contamination, and the first time U.S. regulators have announced a finding of asbestos in the product. Asbestos is a known carcinogen that has been linked to deadly mesothelioma.
The recall is the latest blow to the more than 130-year-old U.S. healthcare conglomerate that is facing thousands of lawsuits over a variety of products, including baby powder, opioids, medical devices and the antipsychotic Risperdal.
A jury last week ordered the company to pay $8 billion to a plaintiff in a case claiming J&J downplayed the risks of Risperdal. That award is not expected to stand, the company and legal experts have said.
J&J faces more than 15,000 lawsuits from consumers claiming its talc products, including Johnson’s Baby Powder, caused their cancer.
On a conference call with reporters on Friday, Dr. Susan Nicholson, head of Women’s Health in the company’s medical safety organization, called the asbestos finding “extremely unusual,” adding that it was “inconsistent with our testing to date.”
The voluntary recall announced on Friday is limited to one lot of Johnson’s Baby Powder produced and shipped in the United States in 2018, the company said. J&J in a news release said that testing by the U.S. Food and Drug Administration as recently as a month ago found no asbestos in their talc.
The FDA said in a statement that the latest sampling took place during its testing for asbestos in talc-containing cosmetics that it began reporting this year. A second Johnson’s Baby Powder sample from a different lot tested negative for asbestos, the agency said.
Related CoverageFDA alerts consumers of J&J baby powder recall, says it stands by testsJohnson & Johnson says baby powder investigation could take 30 days or more
The FDA said it stands by the quality of its testing and results and recommended consumers stop using the product if it comes from the affected lot.
J&J said on the conference call that it received a report from the FDA on Oct. 17 alerting the company about the asbestos finding. It said it has started an investigation and is reviewing manufacturing records and collecting data on the distribution of the lot to determine where the product was shipped.
J&J added that it is working with the FDA to determine the integrity of the tested sample as well as the validity of test results.
THOROUGH INVESTIGATION NEEDED
The type of asbestos discovered by FDA testing has not been found in the mine where the company sources its talc, J&J’s Nicholson said. She described it as an environmental contaminant most commonly found in building materials and industrial applications.
J&J said it was too early to confirm whether cross-contamination of the sample had caused a false positive, whether the sample was taken from a bottle with an intact seal or whether the it was prepared in a controlled environment. It added that it could not confirm whether the tested product was authentic or counterfeit.
“It is so critical that we perform a thorough investigation of the sample to determine the source of contamination,” Nicholson said.
Since 2003, talc in Johnson’s Baby Powder sold in the United States has come from China through supplier Imerys Talc America, a unit of Paris-based Imerys SA and a co-defendant in much of the talc litigation. Imerys and J&J said the Chinese talc is safe.
FILE PHOTO: A bottle of Johnson & Johnson's Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS/Shannon Stapleton/File Photo
J&J has known for decades that asbestos lurked in its talc, Reuters reported last year. Internal company records, trial testimony and other evidence show that from at least 1971 to the early 2000s, the company’s raw talc and finished powders sometimes tested positive for small amounts of asbestos. Company executives, mine managers, scientists, doctors and lawyers fretted over the problem and how to address it, while failing to disclose it to regulators or the public, Reuters found.
J&J has repeatedly said that its talc products are safe, and that decades of studies have shown them to be asbestos-free and that they do not cause cancer.
The FDA test indicated the presence of no greater than 0.00002% of chrysotile asbestos in the tested sample, J&J said.
The World Health Organization and other authorities recognize no safe level of exposure to asbestos. While most people exposed never develop cancer, for some, even small amounts of asbestos are enough to trigger the disease years later.
Thousands of the lawsuits against J&J have been consolidated before a New Jersey federal judge, who is currently weighing company motions to disqualify plaintiffs’ expert witnesses, including the head of an asbestos testing lab who has testified in earlier trials that he found the contaminant in J&J powders.
Leigh O’Dell, one of the lead plaintiff attorneys, on Friday said the recall “vindicates the position we’ve been taking for months.”
Wells Fargo analyst Larry Biegelsen said in a research note that the recall could encourage additional lawsuits and prompt the company to pursue a broader settlement.
Jefferies healthcare strategist Jared Holz said J&J has already lost close to $10 billion in market value due to the talc issue over the past year.
He said further downside to J&J stock is likely to be limited because legal concerns over talc are well known and have already taken a toll on the share price. “This is one single bottle within one lot with barely a trace here,” he said.
J&J said in February that it had received subpoenas from the U.S. Justice Department and the Securities and Exchange Commission for documents related to the asbestos contamination allegations. A Bloomberg report, which Reuters has confirmed, said those inquiries include a criminal grand jury investigation into how forthright J&J has been in its statements about the safety of its powders.
While talc products make up less than 1% of J&J sales expected by analysts to reach $82 billion in 2019, the New Jersey-based healthcare-products maker considers its Baby Powder to be an essential facet of a carefully tended image as a caring company.
Reporting and writing by Julie Steenhuysen in Chicago, additional reporting by Lisa Girion and Chad Terhune in Los Angeles; Caroline Humer in New York, Tamara Mathias and Ankur Banerjee in Bengaluru and Daniel Levine in San Francisco; Editing by Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.
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8f66237de33945c386a3286dd1f18f4e | https://www.reuters.com/article/us-johnson-johnson-talc/jury-orders-johnson-johnson-to-pay-750-million-in-new-jersey-talc-case-idUSKBN2002TI | Jury orders Johnson & Johnson to pay $750 million in New Jersey talc case | Jury orders Johnson & Johnson to pay $750 million in New Jersey talc case
By Lisa Girion, Michael Erman2 Min Read
(Reuters) - Johnson & Johnson was ordered on Thursday by a New Jersey state jury to pay punitive damages of $750 million to four plaintiffs who allege that the company’s Baby Powder caused their cancer, a ruling that will be reduced to around $185 million because of state laws, according to a lawyer for the plaintiffs and the company.
FILE PHOTO: The Johnson & Johnson logo is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., May 29, 2019. REUTERS/Brendan McDermid/File Photo
During an earlier phase of the trial, a different jury held J&J liable for the plaintiffs’ cancers and awarded them $37.2 million in compensation.
Under New Jersey law, punitive damages are capped at 5 times the amount of compensatory damages, according to plaintiffs lawyer Chris Placitella.
J&J said in a statement it would quickly appeal both phases of the trial, citing “numerous legal errors that subjected the jury to irrelevant information and prevented them from hearing meaningful evidence.”
The verdict came after J&J Chief Executive Alex Gorsky testified last month for the first time in a jury trial over allegations that the company’s Baby Powder causes cancer.
“We believe the jury was speaking directly to Alex Gorsky,” plaintiffs lawyer Placitella said.
J&J faces more than 16,000 lawsuits alleging it sold powders contaminated with asbestos and failed to warn users. It also faces a federal criminal investigation into how forthright it has been about the products’ safety.
J&J denies that its talc causes cancer, saying numerous studies and tests by regulators worldwide have shown its talc to be safe and asbestos-free.
On Dec. 14, 2018, Reuters published a story that showed J&J had failed to disclose that small amounts of asbestos, a known carcinogen, had sometimes been found in its talc over several decades. After the report was published, a selloff wiped more than $40 billion off the company’s market value.
At the time, J&J dismissed the Reuters’ report as “an absurd conspiracy theory.”
Reporting by Lisa Girion; Writing by Michael Erman; Editing by Leslie Adler and Daniel WallisOur Standards: The Thomson Reuters Trust Principles.
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17328bc45bc46738b1a8e3060cf9405d | https://www.reuters.com/article/us-johnson-johnson-verdict/johnson-johnson-hit-with-247-million-verdict-in-hip-implant-trial-idUKKBN1DG2MB?edition-redirect=uk | Johnson & Johnson hit with $247 million verdict in hip implant trial | Johnson & Johnson hit with $247 million verdict in hip implant trial
By Tina Bellon3 Min Read
NEW YORK (Reuters) - A federal jury in Dallas on Thursday ordered Johnson & Johnson and its DePuy Orthopaedics unit to pay $247 million to six patients who said they were injured by defective Pinnacle hip implants.
FILE PHOTO: A Johnson & Johnson building is shown in Irvine, California, U.S., January 24, 2017. REUTERS/Mike Blake
Delivering a third straight win to patients, the jury found that the metal-on-metal hip implants were defectively designed and that the companies failed to warn consumers about the risks.
Six New York residents implanted with the devices said they experienced tissue death, bone erosion and other injuries they blamed on design flaws.
J&J, which faces more than 9,700 Pinnacle lawsuits in state and federal courts across the United States, said in a statement it would immediately begin the appeal process.
A DePuy spokeswoman said the company was still “committed to the long-term defense of the allegations in these lawsuits,” adding that the metal-on-metal hip implants were backed by a strong record of clinical data showing they were effective.
Plaintiffs claimed the companies falsely promoted the device, most commonly used to treat joint failure caused by osteoarthritis, by saying it lasted longer than similar implants that include ceramic or plastic materials.
“We thank this jury for sending a very strong message about the responsibility the defendants have to take care of their consumers,” Mark Lanier, who represented the New York patients, said in a statement.
Thursday’s verdict came in the fourth test trial over the devices in Dallas federal court, where some 9,000 of the cases are pending. Test cases have been selected for trial, and their outcomes will help gauge the value of the remaining claims and inform potential settlement talks.
J&J won the first Pinnacle test trial in 2014, but subsequent juries determined the companies to be liable.
“This nine-week trial was a disservice to everyone involved because the verdict will do nothing to advance the ultimate resolution of this six-year old litigation,” attorney John Beisner, who represented the companies, said in a statement. He said the firms would seek further appellate guidance.
A jury in March 2016 awarded five Texas plaintiffs $500 million in damages. That award was later cut to $150 million.
J&J and DePuy were also found liable at a trial in March, during which a jury awarded six California patients $1 billion - a verdict that was later reduced to $543 million.
DePuy ceased selling the metal-on-metal Pinnacle devices in 2013 after the U.S. Food and Drug Administration strengthened its artificial hip regulations.
Reporting by Tina Bellon; Editing by David Gregorio and Dan GreblerOur Standards: The Thomson Reuters Trust Principles.
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3af56d137ca3ea68d8ec9e79c05ab9cd | https://www.reuters.com/article/us-johnson-johnson-whitening-idCAKBN23Q2BZ?edition-redirect=ca | Johnson & Johnson drops skin-whitening creams | Johnson & Johnson drops skin-whitening creams
By Martinne Geller2 Min Read
FILE PHOTO: The U.S. flag is seen over the company logo for Johnson & Johnson to celebrate the 75th anniversary of the company's listing at the New York Stock Exchange (NYSE) in New York, U.S., September 17, 2019. REUTERS/Brendan McDermid/File Photo
LONDON (Reuters) - Johnson & Johnson JNJ.N has decided to stop selling skin-whitening creams popular in Asia and the Middle East, it said on Friday, after such products have come under renewed social pressure in recent weeks amid a global debate about racial inequality.
Johnson & Johnson will stop selling its Clean & Clear Fairness line of products, sold in India, a spokeswoman told Reuters. It was reported earlier this month that it would drop its Neutrogena Fine Fairness line, available in Asia and the Middle East.
“Conversations over the past few weeks highlighted that some product names or claims on our dark spot reducer products represent fairness or white as better than your own unique skin tone,” Johnson & Johnson said. “This was never our intention – healthy skin is beautiful skin.”
The healthcare company said it would no longer produce or ship the products, but that they might still appear on store shelves until stocks run out.
Creams that promise to lighten or brighten skin are marketed primarily to women by the world's biggest personal care companies, including Unilever ULVR.L, Procter & Gamble PG.N and L'Oreal OREP.PA under their respective brands Fair & Lovely, Olay and Garnier. Those companies did not immediately respond to a request for comment.
About 6,277 tonnes of skin lightener were sold worldwide last year, according to Euromonitor International, including products marketed as anti-aging creams targeting dark spots or freckles.
(The story refiles to restore dropped word “Johnson” in first paragraph)
Additional reporting by Siddharth Cavale in Bengaluru; editing by Jonathan Oatis and Dan GreblerOur Standards: The Thomson Reuters Trust Principles.
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f584ae2b01f4183a37bf63aea0bbc4d6 | https://www.reuters.com/article/us-johnsonandjohnson-idUSTRE80I1JF20120119 | J&J to pay $158 million to settle Texas Risperdal case | J&J to pay $158 million to settle Texas Risperdal case
By Corrie MacLaggan3 Min Read
AUSTIN, Texas (Reuters) - Johnson & Johnson said on Thursday it will pay $158 million to settle a Texas lawsuit accusing the drugmaker of improperly marketing its Risperdal anti-psychotic drug to state residents on the Medicaid health program for the poor.
The settlement fully resolves all Risperdal-related claims in Texas, the company said. The agreement is specific to the state of Texas and does not involve other ongoing state or federal Risperdal litigation.
The deal settles claims brought by Texas in 2004 and involves alleged Medicaid overpayments during the years 1994 to 2008 “and will circumvent potentially lengthy and costly appellate activities,” according to a statement from J&J’s Janssen Pharmaceuticals unit.
The settlement will be paid to the original plaintiff, his attorneys, the state of Texas and the federal government, which provides Medicaid reimbursements, the company said.
The complaint against J&J and several of its units filed in U.S. district court in Texas had alleged company representatives “targeted every level of the Texas Medicaid Program with misrepresentations about the safety, superiority, efficacy, appropriate uses and cost effectiveness of Risperdal.”
“Janssen ran amok,” Allen Jones, the Pennsylvania-based whistleblower on J&J’s marketing practices who was a plaintiff along with state of Texas, told reporters in the Austin courthouse.
“They trashed the Johnson & Johnson credo and they misused Texas and, I believe, well-meaning officials, to further their marketing aims,” Jones said. “They subverted science and they induced others to betray the people they were supposed to be taking care of. To me that is reprehensible.”
The deal marks the first Risperdal settlement with any U.S. state, Janssen spokeswoman Teresa Mueller said.
J&J’s once sterling reputation has been battered in the past two years over quality control problems at several of its plants and manufacturing errors that led to massive recalls of a wide variety of its products, including hip replacements, contact lenses, insulin cartridges and heart devices.
Its biggest black eye came from its McNeil consumer healthcare unit, which in a series recalls was forced to pull hundreds of millions of bottles and packages of popular medicines, such as Children’s Tylenol, Motrin, Rolaids and Benadryl.
J&J shares were down 28 cents, or 0.4 percent, at $65 in afternoon trading on the New York Stock Exchange.
Reporting by Corrie MacLaggan; additional reporting and writing by Bill Berkrot and Ransdell Pierson in New York; editing by Michele Gershberg, Lisa Von Ahn, Gunna Dickson and Andre GrenonOur Standards: The Thomson Reuters Trust Principles.
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b4c982fe5979c8b7af35d3d1a4a452ce | https://www.reuters.com/article/us-jolie-idUSTRE66E0WR20100715 | Angelina Jolie jolts a man's world: action films | Angelina Jolie jolts a man's world: action films
By Jay A. Fernandez10 Min Read
LOS ANGELES (Hollywood Reporter) - The National Organization for Women should send Angelina Jolie a nice cheese basket (or vice versa).
Actress Angelina Jolie poses during the launch of her movie "Salt" in Cancun June 30, 2010. REUTERS/Gerardo Garcia
The world’s most famous Hollywood humanitarian might not have single-handedly erased gender inequality in the movie industry, but she sure has struck a major blow for actresses. How else to explain her $20 million payout for Sony’s next big summer release, “Salt,” an action project that originally was written to star a man -- no less than Tom Cruise?
“It’s definitely unusual that a female has become an action star,” “Salt” producer Lorenzo di Bonaventura says. “But it’s a funny thing. She’s not a female action star; she’s an action star. She’s really the first female to transcend gender. I don’t think it’s occurred before.”
To di Bonaventura’s point, a star must be in some rarefied atmosphere when a lead role in a big studio action movie is rewritten from male to female. It’s akin to the groundbreaking result when 25 years ago Jerry Bruckheimer had the white lead in the “Beverly Hills Cop” screenplay refashioned so it could star a 22-year-old black actor named Eddie Murphy.
Then again, given Jolie’s track record, it’s not so much of a stretch. In the past 10 years, she has starred in five action-dominated films that have averaged $124 million in domestic grosses. Worldwide, those grosses total nearly $1.5 billion. Again, that’s just her action roles -- “Wanted” (2008), “Mr. & Mrs. Smith” (2005), “Lara Croft Tomb Raider: The Cradle of Life” (2003), “Lara Croft: Tomb Raider” (2001) and “Gone in 60 Seconds” (2000).
The Philip Noyce-directed “Salt,” in which Jolie plays a CIA spook accused of foreign espionage who must go on the run, looks prepared to push that total upward when it opens next Friday. Industry tracking a week out has it opening north of $30 million, but its only competition that weekend is the kid-friendly “Ramona and Beezus” and the second week of “Inception,” which means interest is likely to spike as it gets closer to opening.
“Wanted” opened at $50.9 million against “WALL-E” two summers ago, and “Smith” opened at $50.3 million in 2005.
Sony also has her next project, “The Tourist,” a reworking of the 2005 French thriller “Anthony Zimmer,” which will open in February. That film pairs her with one of the most bankable actors in the world, Johnny Depp. As Elise, a femme fatale, Jolie gets to show off her sensual side and her active one when killers start chasing the patsy she has put in harm’s way.
No actress in Hollywood history has been able to chisel out the supremacy Jolie has in a male-dominated genre. Actually, her achievement is bigger than that. Her standard deal, which she received for “Salt” and “Tourist,” is matched by only one or two other actors in the world, with $20 million up front, a hefty share of the profits plus other sizable ancillary benefits. She already was getting $15 million for “Smith” and “Wanted.”
“The fact that she is in the entertainment industry and can approach a male salary is an anomaly,” says Lori Watson, director of women’s and gender studies at the University of San Diego. “Maybe she can command a salary, but she can’t break through the expectations that women are supposed to be beautiful and sexualized and fit a certain mold and behave in a certain way.”
Over the years, mostly thanks to the efforts and vision of director James Cameron, audiences have been treated to a rare female lead who can handle herself in a gun or fistfight. Sigourney Weaver as Ellen Ripley in “Aliens” in 1986, Linda Hamilton in “Terminator 2: Judgment Day” in 1991, and Zoe Saldana and Michelle Rodriguez in “Avatar” last year all represented strong, confident women ready to knock some heads.
Kate Beckinsale and Milla Jovovich carved out B-movie franchises as action heroines in the fantasy-horror genre -- Beckinsale with “Underworld” and Jovovich with “Resident Evil.” And Cameron Diaz, Lucy Liu and Drew Barrymore threw themselves into action camp with the successful “Charlie’s Angels” movies -- but those were highly stylized three-handers, and all three thesps have since quickly retreated to more traditional roles. (Diaz did just jump on a motorcycle with Cruise in “Knight and Day,” but that has underperformed in North America.)
Television has been a better training ground for the female action archetype. Jessica Alba launched her career in “Dark Angel” (Cameron again!), Jennifer Garner was fierce as the college student/spy of “Alias,” courtesy of J.J. Abrams, and Joss Whedon birthed “Buffy the Vampire Slayer” (Sarah Michelle Gellar) and “Dollhouse” (Eliza Dushku).
It’s notable that Garner dabbled in action on the big screen in “Daredevil” and its spinoff “Elektra,” but quickly returned to the world of romantic comedy when those failed. Alba suited up for the “Fantastic Four” movies but had very little to do. And while Scarlett Johansson’s turn as Black Widow in “Iron Man 2” looked promising, that was a small part and no one expects her to spend much more time in the blow-‘em-up genre.
Other top actresses still command huge audiences in less surprising contexts. Sandra Bullock has reminded everyone that she can draw major bank, in feel-good drama (“The Blind Side”) and traditional romantic comedy (“The Proposal”). And Julia Roberts is likely to clean up in “Eat Pray Love.”
Like those women, Jolie also has an Oscar on her mantle, and a genuine yen to tackle challenging parts in adult dramas such as “Changeling,” “A Mighty Heart” and “Girl, Interrupted,” which got her that gold statuette (and an asterisk for oddest acceptance speech). But Jolie has also contributed her voice to three cartoons -- “Kung Fu Panda,” “Beowulf” and “Shark Tale” -- that have grossed another $1.2 billion worldwide.
Jolie’s not bulletproof. She’s had her misfires and middling movies (“Taking Lives” and “Beyond Borders” come to mind), but she’s got the dramatic acting chops and the athletic prowess to sell herself in almost anything (though even her prestige movies don’t always bring in the big bucks).
So what, precisely, can’t she do? Well, just one thing, actually. Romantic comedy. She did try it once, in “Life, or Something Like It” in 2002, and the $14.4 million domestic gross sent a message she clearly noted.
“She’s too strong, she’s too forceful,” says Hollywood historian David Thomson (“Rosebud: The Story of Orson Welles”). “And that’s not just her screen character. It’s her public character, too. She’s not got that sort of availability for romance. She isn’t really sentimentally appealing. She needs to be doing strong things -- crazy things, sometimes -- to work on screen.”
Put another way, Jolie is tough for female audiences to get behind. She’s threatening. Whether accurate or not, many perceive even Jennifer Aniston to have been a victim of Jolie’s sharkish charm after husband Brad Pitt became smitten with Jolie during the shoot for “Smith.”
“My feeling on the ground is at the beginning of that relationship a lot of women viewed her as a homewrecker,” says Watson. “But since then, her charitable work, her adoption, her work with the U.N., and the work that they’re doing in New Orleans and her public face as a mother appeals to a lot of women as a kind of person who has A) a completely supportive partner that a lot of women would like and don’t have, and b) someone who can manage a family and a career and is committed to those mainstream values even if she lives in a very different, romanticized, Hollywood rich kind of way.”
But how long can her appeal last? Her fans are beginning to slide more heavily into the over-30 crowd, away from the male teens who want to see her bend bullets and look at the camera over a naked, tattooed back. Sooner rather than later, they’re going to want to see a new face (and naked back).
Perhaps Jolie is aware of this. Because now, at the pinnacle of her success, she is making noises that she might not be much longer for the business. “I’m very, very grateful, it’s a fun job. It’s a luxury,” she recently told Vanity Fair. “But I don’t think I’ll do it much longer.”
Jolie is only 35 years old. By the Indiana Jones standard, then, she’s got another 30 years of running, punching and flipping ahead. Although she’s trimmed her work commitments down to one film a year, she’s got sequels to “Salt,” “Wanted” and even, possibly, “Tourist” to consider. Also, there’s the “Sleeping Beauty” spinoff “Maleficent,” a new take on “Cleopatra,” the dark drama “Serena” for director Darren Aronofsky, and another potential franchise spun from the Patricia Cornwell character Dr. Kay Scarpetta, a sleuthing medical examiner.
If she did call it quits, is there anyone to carry the mantle if Jolie suddenly walked away?
“I don’t see anybody right now,” di Bonaventura says. “Will there be more female action heroes? There will be another one, yeah, I believe that. You look at these things as a progression. First they tried to mimic what a male action star was. And now with Angie, you’re just letting her be what she is. We’ve gotten away from that male classification of what is an action star. And that means that will open possibilities for somebody else. You just needed somebody to break the ground.”
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b0bfae37ea4b008bebf6e1e5f547d46e | https://www.reuters.com/article/us-joneses-idUSN1938336920080919 | Duchovny, Moore faking it for family drama | Duchovny, Moore faking it for family drama
By Borys Kit2 Min Read
LOS ANGELES (Hollywood Reporter) - David Duchovny, Demi Moore and Amber Heard will form the perfect family in “The Joneses,” a social commentary with comedic elements.
The story centers on a picture-perfect family that moves into a new suburban neighborhood and immediately becomes the toast of the town, loved and envied by all. But the reality is they are a commissioned fake family put together by a marketing company as a way to introduce new luxury-level products to neighborhoods around the world.
Duchovny plays the fake father, a man undergoing a crisis of confidence due to his living a lie. In real life, the star of Showtime’s “Californication” entered a rehab center a few weeks ago to deal with sex addiction.
Moore is the mother, a career-driven woman who struggles with her growing feelings towards her fake husband. Heard plays the fake daughter who is trying to seduce her fake dad while looking for a rich man.
The project is eyeing a mid-October start in Atlanta. It marks the feature directing debut of Derrick Borte, who wrote the script.
Moore recently wrapped the action noir movie “Bunraku” and the ensemble drama “Happy Tears.” Heard was recently seen in “Pineapple Express” and will next be seen in the film adaptation of the Bret Easton Ellis novel “The Informers.”
Reuters/Hollywood Reporter
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a52a1cf1942dcd4f175d728c4c085f28 | https://www.reuters.com/article/us-jordan-government-reshuffle-idUSKBN1XH1QB | In major reshuffle, Jordan PM moves to push IMF-led economic reforms | In major reshuffle, Jordan PM moves to push IMF-led economic reforms
By Suleiman Al-Khalidi3 Min Read
AMMAN (Reuters) - Jordan’s prime minister reshuffled much of his cabinet on Thursday, appointing a former palace adviser as finance minister as he pursues efforts to slash the country’s debt under a tough economic reform program.
FILE PHOTO: Jordan's Prime Minister Omar al-Razzaz speaks to the media during a news conference in Amman, Jordan April 9, 2019. REUTERS/Muhammad Hamed - RC1CF693CCE0/File Photo
The reshuffle was Omar al Razzaz’s fourth since taking office almost a year and a half ago. It affected 11 ministries in all but left other incumbents, notably the foreign affairs and interior ministers, unchanged.
As finance minister he brought in Mohammad Al Ississ, a Harvard-educated economist and former palace adviser, in place of Ezzedin Kanakriyah. [L8N27N5JE]
Al Ississ, who had been serving as planning minister, will lead a team overseeing the economic program that Jordan agreed with the International Monetary Fund in 2016 and has since been slow in implementing.
Razzaz has defended the IMF-backed reforms, saying Jordan can no longer afford a bloated public sector whose salaries eat up the $13 billion budget while the economy groans under a record public debt of around $40 billion.
The reforms covers long-delayed structural reforms and will seek to gradually cut public debt now at 94 percent of GDP.
The IMF said earlier this year delays in implementing the reforms would undermine Jordan’s ability to push growth well beyond an average 2% - where it has been stuck for years - to reduce poverty and youth unemployment, which has risen to 19%.
Economists and analysts say low growth and insufficient job creation are the kingdom’s two main problems.
“There are mounting challenges to boosting growth essential to reducing societal tensions and high unemployment. These challenges are tough with no quick fixes in the short term,” said Ibrahim Saif, a former planning minister who heads Jordan Strategy Forum, a think-tank.
Al Ississ will also oversee completion of the 2020 budget, which officials expect will involve significant spending cuts alongside a stimulus package to boost business confidence.
Jordan’s cash-strapped state finances have been brought under pressure in recent months by government moves to raise the salaries of teachers and army retirees even as state revenues dwindle.
Officials have said Jordan is expected to ask the IMF for more time to implement the reform program, which last year triggered the biggest demonstrations in years when tax hikes pushed by the IMF came into effect.
The protests showed pushing the debt-burdened country to live beyond its means risked major instability, and the same worries are resurfacing if the IMF insists on more austerity measures in coming talks this month, officials privately say.
King Abdullah appointed Razzaz in the summer of 2018 with a brief to defuse the protests, and the premier has sought to revive confidence in a country where many blame successive governments for failing to deliver on pledges to revive economic growth, cut waste and curb corruption.
The economy has also been hit by conflict in the Middle East, which has weighed on investor sentiment.
Reporting by Suleiman Al-Khalidi; Editing by John Stonestreet and Mark HeinrichOur Standards: The Thomson Reuters Trust Principles.
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3febd3362c51c321051aba61c4b28fc3 | https://www.reuters.com/article/us-jordan-turkey-usa-haley-idUSKCN18D2U0?utm_source=Boomtrain&utm_medium=MEM&utm_campaign=20170518 | U.S. envoy to the U.N. will visit Syrian refugees in Jordan, Turkey | U.S. envoy to the U.N. will visit Syrian refugees in Jordan, Turkey
By Reuters Staff2 Min Read
FILE PHOTO - United States Ambassador to the United Nations Nikki Haley delivers remarks at the Security Council meeting at the United Nations Headquarters, in New York, U.S, on April 7, 2017. REUTERS/Stephanie Keith/File Photo
UNITED NATIONS (Reuters) - U.S. Ambassador to the United Nations Nikki Haley said on Wednesday she will visit Turkey and Jordan from May 19-25 to see how Syrian refugees “are coping, day in and day out,” to see U.N. humanitarian work and highlight the U.S. aid response.
It will be the first overseas trip by Haley, a member of President Donald Trump’s cabinet, and follows a bid by Trump to temporarily ban refugees from entering the United States and to cut funding to the United Nations and its agencies.
“What is happening in Syria and its neighboring countries is a true humanitarian crisis. But those who accuse the U.S. of heartlessness in the face of this crisis are wrong,” Haley wrote in the Wall Street Journal newspaper on Wednesday.
“No country has invested more in protecting, housing, feeding and caring for Syrian refugees than the U.S. We have provided nearly $6.5 billion in emergency assistance for Syria since the start of the crisis,” she wrote.
Haley said she would talk to government leaders about how U.S. programs to help refugees are working. She also plans to visit refugee camps and families, U.S. funded schools and to witness U.N. efforts to ship humanitarian aid into Syria from Jordan and Turkey.
“With American help, Syria’s neighbors have made the difference between life and death for millions of Syrians. The U.S. and the U.N. will continue to do a great deal of heavy lifting for these desperate people,” Haley wrote.
Haley’s trip coincides with Trump’s maiden trip abroad to Saudi Arabia, Israel, Italy and Belgium.
A crackdown by Syrian President Bashar al-Assad on pro-democracy protesters in 2011 led to civil war and Islamic State militants used the chaos to seize territory in Syria and Iraq. Half of Syria’s 22 million people have been uprooted and more than 400,000 killed.
Reporting by Michelle Nichols; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.
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e832e7ba456474838d40f87e858d4cda | https://www.reuters.com/article/us-jordan-usa-biden/jordans-king-expresses-to-u-s-president-elect-biden-keenness-to-continue-strategic-partnership-tweet-idUSKBN2832MU?il=0 | Jordan's king expresses to U.S. President-elect Biden keenness to continue strategic partnership: tweet | Jordan's king expresses to U.S. President-elect Biden keenness to continue strategic partnership: tweet
By Reuters Staff1 Min Read
FILE PHOTO: U.S. President-elect Joe Biden speaks to reporters following an online meeting with members of the National Governors Association (NGA) executive committee in Wilmington, Delaware, U.S., November 19, 2020. REUTERS/Tom Brenner/File Photo
CAIRO (Reuters) - Jordan’s King Abdulllah expressed in a phone call on Monday with U.S. President-elect Joe Biden “keenness to continue bolstering the strategic partnership between the two countries to expand cooperation, in service of mutual interests and regional security and stability,” the Jordanian royal court said on Twitter.
Reporting by Nayera Abdallah; Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.
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9059a87a249455b7a74baba2d247f65b | https://www.reuters.com/article/us-joules-grp-outlook/stock-shortage-during-christmas-to-hit-fashion-retailer-joules-profit-idUKKBN1Z90M7?edition-redirect=uk | Stock shortage during Christmas to hit fashion retailer Joules profit | Stock shortage during Christmas to hit fashion retailer Joules profit
By Yadarisa Shabong2 Min Read
(Reuters) - Fashion retailer Joules Group Plc JOUL.L warned on Friday that its 2020 profit would be significantly below market expectations as online retail sales suffered due to a shortage of merchandise during the crucial Christmas period.
Joules, which designs and sells clothes, accessories and furnishings, said costs in the fiscal second-half could rise due to U.S.-China tariffs, which it expected to continue into next year.
The company, known for its hand-drawn or hand-painted prints, said it was not able to convert growing traffic into sales because of “an internally generated stock availability issue”.
“We have identified the root cause of this one-off issue and have taken steps to prevent its reoccurrence,” Chief Executive Officer Nick Jones said, as the retailer announced what it said were strategic decisions regarding its supply chain operations.
The moves included a transition of its U.S. distribution center to a new partner and establishing an outsourcing partnership to help its UK logistics operation.
“The issue here was one of merchandising and was a self-inflicted problem with demand being strong from customers, traffic was robust leaving us to assume there is no issue with the brand nor was the range out of favor,” analysts at Liberum said.
Industry data on Thursday showed British shoppers cut back at the end of 2019, rounding off the worst year since the mid-1990s for retail sales amid uncertainty over Brexit, last month’s election and slowing wage growth.
Retail sales over the seven-week period to Jan. 5 were significantly below expectations and fell by 4.5% compared with the prior year, Joules said.
Traffic to its website grew by 8% for the Christmas period, it said.
The underlying pretax profit was expected to be 16.7 million pounds, according to a company-compiled consensus of estimates. It reported profit of 15.5 million pounds ($20.25 million) for the year ended May 2019.
Reporting by Yadarisa Shabong in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.
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3d808b0e20d4e2ec04fc20d074f3c72f | https://www.reuters.com/article/us-joyy-m-a-baidu-idINKBN27W2UV?edition-redirect=in | Baidu to buy JOYY's live-streaming business in China for $3.6 billion | Baidu to buy JOYY's live-streaming business in China for $3.6 billion
By Reuters Staff1 Min Read
FILE PHOTO: A security personnel stands guard at the opening session of Baidu's annual AI developers conference Baidu Create 2019 in Beijing, China, July 3, 2019. REUTERS/Jason Lee
(Reuters) - Chinese search engine giant Baidu Inc BIDU.O said on Monday it would acquire JOYY Inc's YY.O video-based entertainment live streaming business in China for about $3.6 billion in cash.
The deal is expected to close in the first half of 2021 and would includes YY mobile app, YY.com website and PC YY, among others, the company said.
Reporting by Ayanti Bera in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.
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988c87034503734d334f434998e14235 | https://www.reuters.com/article/us-joyy-muddy-waters-idUKKBN27Y2V9?edition-redirect=uk | Short-seller Muddy Waters takes aim at Chinese social media firm JOYY | Short-seller Muddy Waters takes aim at Chinese social media firm JOYY
By Reuters Staff2 Min Read
(Reuters) - China's JOYY Inc YY.O shares dropped 20% on Wednesday after U.S. short-seller Muddy Waters accused the social media platform of being a "multibillion-dollar fraud" and decided to bet against the stock.
"We conclude that YY's component businesses are a fraction of the size it reports, and that the company's reported user metrics, revenues, and cash balances are predominantly fraudulent," Muddy Waters said in a report on its website. [bit.ly/3lErXvU]
The comment from the short-seller comes days after Chinese search engine giant Baidu Inc BIDU.O decided to acquire JOYY's domestic streaming platform YY Live for $3.36 billion in cash.
Muddy Waters said the deal announcement came just as it was preparing to reveal that its year-long investigation shows YY Live is an “ecosystem of mirages” and “about 90% fraudulent”.
JOYY did not immediately respond to a request for comment.
The live streaming platform recorded 41.3 million monthly active users, on average, according to its third-quarter earnings report.
Short interest on JOYY stands at 4.6 million, or 5.7% of outstanding shares, as of Oct. 30, according to Refinitiv data.
Reporting by Ayanti Bera in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.
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94d35c7ff5bbd0482db58740af6958c8 | https://www.reuters.com/article/us-jp-morgan-blockchain/jpmorgan-chase-to-create-digital-coins-using-blockchain-for-payments-idUSKCN1Q321P | JPMorgan Chase to create digital coins using blockchain for payments | JPMorgan Chase to create digital coins using blockchain for payments
By Reuters Staff3 Min Read
(Reuters) - JPMorgan Chase & Co said on Thursday it plans to launch its own digital coins, called “JPM Coin”, that customers will be able to use for instant transfer of payments over a blockchain network.
FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files/File Photo
The largest U.S. bank by assets said customers, on depositing money at the bank, will be issued the cryptocurrency that they will be able to use for transactions over the network with other JPMorgan clients.
The coin can be redeemed for a U.S. dollar, so its value will largely remain stable, the bank said bit.ly/2V0lFsV.
When one client sends money to another over the blockchain, JPM Coins are transferred and instantaneously redeemed for the equivalent amount of U.S. dollars, reducing the typical settlement time, the bank said.
Chief Executive Officer Jamie Dimon once criticized the former high-flying bitcoin, calling it a “fraud” in 2017. Back then Dimon said cryptocurrencies are “worse than tulips bulbs,” referring to a famous market bubble from the 1600s.
He tempered his view a few months later, saying he regretted calling bitcoin a fraud, but maintained his disinterest in the cryptocurrency.
The bank said in a presentation on its website discussing the new JPM Coin that it was supportive of “cryptocurrencies as long as they are properly controlled and regulated.”
“As a globally regulated bank, we believe we have a unique opportunity to develop the capability in a responsible way with the oversight of our regulators,” said JPMorgan’s Head of digital treasury services and blockchain Umar Farooq.
JPMorgan also said it believed in the potential of blockchain technology, and expects its new digital coin to yield significant benefits for blockchain use by reducing clients’ counterparty and settlement risk, decreasing capital requirements and enabling instant value transfer.
Last year, several big U.S. lenders including JPMorgan, banned the purchase of bitcoins by credit-card customers. Rival Goldman Sachs also ditched its plan to open a desk for cryptocurrency trading.
JPMorgan said its new coin, which will be issued on its in-house blockchain technology Quorum, was currently a prototype. The company plans to make the coin operable on all standard blockchain networks.
Reporting By Aparajita Saxena in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.
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4ac6f01983e45cf2a877d4f78155812b | https://www.reuters.com/article/us-jp-morgan-business-roundtable-idUSKCN1V91EK | Top U.S. CEOs say companies should put social responsibility above profit | Top U.S. CEOs say companies should put social responsibility above profit
By Elizabeth Dilts4 Min Read
NEW YORK (Reuters) - Corporate America is responsible for providing economic benefits to all, not just its investors, the Business Roundtable group said on Monday.
The group's "statement of corporate purpose" was signed by the heads of more than 180 U.S. companies, including the CEOs of Amazon.com Inc AMZN.O, American Airlines AAL.O, the largest airline in the world; and JPMorgan Chase & Co JPM.N, the biggest American bank.
Although largely symbolic, the group’s statement goes against a roughly 30-year viewpoint that corporations exist to serve shareholders.
That notion has guided every major business decision, from how much a CEO is paid to whether a company invests in its employees or fires them.
The statement comes amid calls for greater corporate responsibility from Democratic candidates for president and employee activists who want companies to take stances on issues outside of the corporate sphere.
The chairman of the Business Roundtable, JPMorgan CEO Jamie Dimon, said there is a growing wealth gap in the United States, and prioritizing all stakeholders will lead to a healthier economy.
“The American dream is alive, but fraying,” Dimon said in a statement. “Major employers are investing in their workers and communities because they know it is the only way to be successful over the long term.”
FILE PHOTO: JPMorgan Chase CEO Jamie Dimon speaks at the North America's Building Trades Unions (NABTU) 2019 legislative conference in Washington, U.S., April 9, 2019. REUTERS/Jeenah Moon
The statement outlined five commitments, including to invest in employees by providing fair wages and “important benefits,” support communities and “protect the environment.”
The group’s statement could be significant because the previous tenet - shareholder primacy - fueled a range of decisions now commonplace at publicly traded companies, said Barbara Dyer, an MIT Sloan School of Management professor.
“If you think that the primary thing is to generate shareholder value then you want to cut down any costs that are unduly high,” Dyer said.
In the 1980s, that led to staff cuts and efforts to break unions.
Dyer said the Business Roundtable may have changed its perspective now because the tight labor market presents an opportunity to rethink “how we view and how we invest in people.”
She added, however, that it is unclear whether the statement represents a real turning point and said she was skeptical it will create major changes, for example, in how executive compensation is structured. “I don’t have any illusions that that’s going to change any time soon.”
Maura Cowley, a director with the Sierra Club Resist campaign, said the statement lacks substance because some of the companies that signed it are “actively making the climate crisis worse.”
“It’s hard to take this letter seriously without further details or next steps,” Cowley wrote in an emailed statement. “Until these sentiments are met with substantial action by these companies it is hard to see this as anything other than words on paper.”
One investor group, the Council of Institutional Investors, criticized the group’s statement, saying that “accountability to everyone means accountability to no one.” Investors are a positive force pushing companies to focus on long-term performance, it said.
“It is government, not companies, that should shoulder the responsibility of defining and addressing societal objectives with limited or no connection to long-term shareholder value,” the Council said.
The AFL-CIO labor group did not immediately reply to a request for comment on the Business Roundtable’s statement.
Reporting By Elizabeth Dilts; editing by Jonathan Oatis and Dan GreblerOur Standards: The Thomson Reuters Trust Principles.
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9a2828a11be89a4488175e06e25e10eb | https://www.reuters.com/article/us-jp-morgan-china-funds/jpmorgan-poised-to-be-first-foreigner-to-get-majority-in-china-fund-venture-idUSKCN1SE0LT | JPMorgan poised to be first foreigner to get majority in China fund venture | JPMorgan poised to be first foreigner to get majority in China fund venture
By Reuters Staff3 Min Read
HONG KONG (Reuters) - JPMorgan could become the first foreign company to own a majority stake in its Chinese mutual fund business, after its joint venture partner put a crucial 2 percent of the business up for sale that analysts expect the Wall Street bank to lap up.
FILE PHOTO: A JP Morgan logo is seen in New York City, U.S. January 10, 2017. REUTERS/Stephanie Keith/File Photo
A move by JPMorgan towards that goal would come at a tense time in U.S.-China ties, as Chinese Vice Premier Liu He is set to continue trade negotiations with the United States that were roiled after U.S. President Donald Trump said on Sunday he would raise tariffs.
Under new rules announced in late 2017, foreign asset managers can own up to 51 percent of their Chinese mutual fund joint ventures, though, so far, no company has managed to do so.
J.P. Morgan Asset Management (JPMAM) currently owns 49 percent of China International Fund Management (CIFM), while Shanghai International Trust, belonging to Shanghai Pudong Development Group, owns 51 percent.
Shanghai International Trust said in a posting on the Shanghai United Assets and Equity Exchange website it is auctioning a 2 percent stake.
“This is a very, very critical step because this potentially could open the doorway for a number of other deals to begin working their way through the process,” said Peter Alexander, founder and managing director of fund consultancy Z-Ben Advisors.
Alexander added he had “a high conviction level” that JPMorgan will be the buyer and that the purchase price will be watched closely, as it will offer a guidance on the “premium” foreign firms need to pay for control of a Chinese fund venture.
The open bidding process begins on May 8, and will continue until June 4.
Last year, JPMorgan said that its asset management unit was “pursuing its desire and intent to increase its current joint venture stake in China International Fund Management Co Ltd to a majority interest.”
A spokeswoman for JPMAM declined to comment on Shanghai International Trust’s move.
Were JPMAM to win the auction, it would still need approval from Chinese regulators to reach 51 percent.
Morgan Stanley became the largest shareholder last month in its joint venture, but remains short of majority control.
A number of foreign asset managers, including JPMAM, wholly own companies in China which hold private securities fund management licenses. However, these licenses do not allow them to sell products to mass market retail investors, something that is allowed for mutual fund management joint ventures.
Lack of access to the China market for foreign companies, including financial services firms, is one major area of contention in the trade dispute between China and the United States, and Z-Ben Advisors’ Alexander said that the stake auction by JPMorgan’s Chinese fund partner could be seen in the context of the trade talks.
“You know this could have been done ages ago. Why now? I don’t believe in coincidence,” he said.
Reporting by Alun John in Hong Kong, Samuel Shen in Shanghai and Cheng Leng in Beijing; Editing by Muralikumar AnantharamanOur Standards: The Thomson Reuters Trust Principles.
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399965185c0eb6ad666b1d2c4b3d2988 | https://www.reuters.com/article/us-jp-morgan-china/jp-morgan-attempts-full-control-of-china-futures-jv-bloomberg-idUKKBN1YZ08X?edition-redirect=uk | JP Morgan attempts full control of China futures JV -Bloomberg | JP Morgan attempts full control of China futures JV -Bloomberg
By Reuters Staff2 Min Read
FILE PHOTO: A sign is seen outside the headquarters of JP Morgan Chase & Co in New York, United States, September 19, 2013. REUTERS/Mike Segar/File Photo
(Reuters) - JPMorgan JPM.N is seeking 100% ownership of its futures joint venture in China, Bloomberg reported on Monday, citing a person familiar with the matter.
Caps on foreign ownerships of futures companies will be scrapped as of 1 January 2020, as part of the gradual opening up of China’s financial sector to foreign players.
China’s futures industry is currently dominated by local players.
A filing to the China Securities Regulatory Commission (CSRC) dated Dec. 25 showed that J.P. Morgan Futures Co. had applied to make a change of more than 5% in its shareholding structure, though did not give any further details.
If the U.S. bank is able to increase its stake, it would be the first foreign player to have majority ownership of its China futures business.
The CSRC announced in October a firm timetable for next year’s opening up of its securities brokerage and mutual fund sectors, as well as its futures industry.
UBS UBSG.S became the first foreign bank to reach 51% ownership of its China securities joint venture under the new rules in late 2018.
JPMorgan received final approval earlier this month to set up a majority owned securities JV, and, in August, purchased the shares needed for a majority equity stake in its Chinese asset management joint venture, pending regulatory approval.
JP Morgan was not immediately available for a request seeking comment.
Reporting by Mekhla Raina in Bengaluru, additional reporting by Cheng Leng in Beijing and Alun John in Hong Kong; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.
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13eabb0d2b956598c82ec93af32f0c93 | https://www.reuters.com/article/us-jp-morgan-climatechange-financing-idUKKBN26R3P2?edition-redirect=uk | JPMorgan aims to back clients to align with Paris climate pact | JPMorgan aims to back clients to align with Paris climate pact
By Reuters Staff2 Min Read
FILE PHOTO: The logo of Dow Jones Industrial Average stock market index listed company JPMorgan Chase (JPM) is seen in Los Angeles, California, United States, in this October 12, 2010 file photo. JPMorgan Chase & Co. owns Chase Commerical Bank and JPMorgan Investment Bank. REUTERS/Lucy Nicholson/
(Reuters) - JPMorgan Chase & Co JPM.N aims to support its clients in expanding investment in clean energy and work towards net zero-emissions by 2050, a move that aligns with the Paris climate pact of cutting carbon output, the bank said on Tuesday.
The Trump administration is preparing to pull the United States - one of the world’s biggest emitters of planet-warming greenhouse gases - out of the Paris accord adopted by nearly 200 nations with the aim of limiting global warming to “well below” 2 degrees Celsius and ideally to 1.5 degrees.
While the use of lower-carbon technology is growing within the electric power and automotive sectors, JPMorgan said, few options are available to replace oil and natural gas in long-distance transportation and heavy industry.
To track the progress towards the goals set in the Paris Agreement, JPMorgan said it will aim to evaluate its clients’ carbon footprint relative to their output, and provide insight into changes in performance.
“The goals set in the Paris Agreement are commendable and ambitious, but the world is not on track to meet them,” said Daniel Pinto, co-president of JPMorgan Chase.
“While the world has a long way to go, we at JPMorgan Chase want to do more.”
Reporting by Ankit Ajmera in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.
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9500c598aa6da5f166b8a362dcd8f3a6 | https://www.reuters.com/article/us-jp-morgan-credit-card-sapphire/jpmorgan-chase-raises-fee-on-popular-sapphire-reserve-credit-card-idINKBN1Z72P6?edition-redirect=in | JPMorgan Chase raises fee on popular Sapphire Reserve credit card | JPMorgan Chase raises fee on popular Sapphire Reserve credit card
By Reuters Staff2 Min Read
FILE PHOTO: A sign is seen outside the headquarters of JP Morgan Chase & Co in New York, United States, September 19, 2013. REUTERS/Mike Segar
NEW YORK (Reuters) - JPMorgan Chase & Co JPM.N said on Wednesday it was raising the annual fee for its popular Chase Sapphire Reserve credit card by $100, according to a press release from the bank. Starting on Jan. 12, all new applicants for the card will be charged a $550 annual fee, up from $450. After April 1, all existing cardholders will be charged the higher annual fee when it comes time for their annual renewal.
The largest U.S. bank said in the statement that the price increase comes as it expands its program of travel rewards and ways to earn points.
The bank has also struggled to manage the expense of the Sapphire Reserve card, which annually gives customers hundreds of dollars in travel credit and rewards points for a range of transportation expenses, like airline flights, roadway tolls and subway fares.
More than 40 million U.S. households have a credit card from JPMorgan, which comprises about 19 percent of the market, executives have said.
The bank is gambling that customers will deem the Chase Sapphire Reserve cards, which launched in 2016, valuable enough for its rich rewards and travel perks that they do not mind the $100 price increase.
This week, the bank announced new partnerships with the ride-hailing app Lyft Inc LYFT.O and the food delivery services DoorDash Inc.
Starting Jan. 13, Sapphire Reserve cardholders will get 10 points per dollar spent on Lyft rides and a free year subscription to Lyft's membership program, Lyft Pink, which gives users discounted rides and other perks. (reut.rs/35DA3fs)
(This story has been refiled to fix typographical error in paragraph 6)
Reporting By Elizabeth Dilts Marshall; Editing by Steve Orlofsky and David GregorioOur Standards: The Thomson Reuters Trust Principles.
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26d16e5963971f871a9f4a4198400bfb | https://www.reuters.com/article/us-jp-morgan-hongkong-corruption-idCAKBN2650Z3?edition-redirect=ca | Trial of former JPMorgan banker begins in Hong Kong with plea of not guilty | Trial of former JPMorgan banker begins in Hong Kong with plea of not guilty
By Sharon Tam, Alun John3 Min Read
HONG KONG (Reuters) - JPMorgan JPM.N did not carry out key checks when employing the son of a potential client, a prosecutor told a Hong Kong court on Monday, the first day of a bribery trial of the bank's former Asia investment banking vice-chairwoman, Catherine Leung.
Leung, who repeated a not guilty plea on Monday, is charged with bribing the then chairman of Kerry Logistics Network Ltd 0636.HK, Ang Keng-lam, by employing his son at the U.S. investment bank's Hong Kong office in 2010.
She did so, the prosecution said, in anticipation that Ang would influence his company to give JPMorgan a role on its up-coming initial public offering (IPO).
The investment bank did not consult its legal and compliance department until after the younger Ang’s employment contract at JPMorgan was signed, prosecution barrister Robert Lee said in his opening submission.
Lee also cited an email he said was written by Leung when Kerry Logistics was in the early stages of preparing for its IPO.
“Son is very keen to do IB (investment banking), but does not interview well ... The last thing I want is for us to go slow and they ask another bank, and I am sure someone will give him a full time offer given the mandate that is up for grabs,” Lee cited Leung as saying in the email.
Leung made no comment in court apart from her plea and declined to comment when approached by Reuters after the first day of her trial.
It was not immediately clear whether Ang or his son, Ang Ren-yi, would be asked to give evidence and neither could be reached through their employer on Monday after Leung’s plea, or ahead of the trial.
Ang Ren-yi left JPMorgan in 2011, the prosecution said in a statement last year.
A JPMorgan spokeswoman on Monday referred Reuters to a statement it made last year, when the bank said: “This is a historical case, which J.P. Morgan reached agreement on and settled in 2016.”
That year, JPMorgan agreed to pay U.S. authorities $264 million to resolve allegations it hired relatives of Chinese officials - known as "princelings" here - to win banking deals.
U.S. authorities at the time said JPMorgan’s Asia unit created an elaborate programme, called “Sons and Daughters”, that allowed clients and influential government officials to recommend potential hires.
Kerry Logistics did not immediately respond to a request for comment on Monday. A representative said last year Ang stepped down as chairman of the firm in August 2012 and that JPMorgan did not participate in Kerry Logistics’ IPO in December 2013.
Editing by Sumeet Chatterjee and Robert BirselOur Standards: The Thomson Reuters Trust Principles.
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a0498e83810878434b6d3fdc2249f845 | https://www.reuters.com/article/us-jp-morgan-leadership-idCAKBN2663H9?edition-redirect=ca | JPMorgan adds six members to operating committee: memo | JPMorgan adds six members to operating committee: memo
By Reuters Staff1 Min Read
FILE PHOTO: Jamie Dimon, chairman & CEO of JP Morgan Chase & Co., speaks during the Bloomberg Global Business Forum in New York City, New York, U.S., September 25, 2019. REUTERS/Shannon Stapleton
(Reuters) - JPMorgan Chase & Co JPM.N is adding six new members to its operating committee, Chief Executive Officer Jamie Dimon said on Tuesday in a memo that was seen by Reuters.
The new members include Thasunda Brown Duckett, chief executive of consumer banking at the U.S. bank, Troy Rohrbaugh, who heads global markets and Teresa Heitsenrether, the global head of securities services.
A total of 10 men and eight women will now sit on the bank's top leadership group, with the additions including one Black executive and one Latino manager, Bloomberg earlier reported bloom.bg/35FRfVe.
Co-presidents Daniel Pinto and Gordon Smith would chair the bank’s new business head forums, according to the memo.
Reporting by Sanjana Shivdas in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.
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ae283edd6bf0e87c998f4eea4945f79d | https://www.reuters.com/article/us-jp-morgan-trader/jpmorgan-puts-senior-credit-trader-on-leave-over-whatsapp-use-bloomberg-idUKKBN1ZC1HD?edition-redirect=uk | JPMorgan puts senior credit trader on leave over WhatsApp use: Bloomberg | JPMorgan puts senior credit trader on leave over WhatsApp use: Bloomberg
By Reuters Staff1 Min Read
FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files
(Reuters) - A senior JPMorgan Chase & Co JPM.N credit trader, Edward Koo, was placed on leave as the bank reviews whether he broke its policies by using WhatsApp group chats with colleagues, Bloomberg reported on Monday.
The discussions included market chatter and the probe hasn’t indicated any improper activity so far, according to the report, which cited people with knowledge of the matter.
The bank hasn’t ruled out taking action against other members of the group, Bloomberg reported.
A spokesman for JPMorgan declined to comment.
Reporting by C Nivedita in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.
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6b26afbbfad209dba5e1eb459f7e3d8e | https://www.reuters.com/article/us-jpmorgan-asset-management-research/jp-morgan-asset-management-says-will-absorb-research-costs-due-to-mifid-ii-idUSKBN1AR1PB | JP Morgan Asset Management says will absorb research costs due to MiFID-II | JP Morgan Asset Management says will absorb research costs due to MiFID-II
By Carolyn Cohn, Helen Reid2 Min Read
FILE PHOTO: People walk inside JP Morgan headquarters in New York, October 25, 2013. REUTERS/Eduardo Munoz/File Photo
LONDON (Reuters) - JP Morgan Asset Management said on Friday that it will absorb the cost of paying brokers for investment research rather than pass it on to its clients when new European regulation comes in next year.
The European Union’s MiFID-II directive comes into force in less than six months, and will require brokers to set a separate price for investment research they provide to fund managers, rather than bundle in the cost with trading services. That leaves asset managers with a choice of having to pass the new charges on to clients or not.
“Research costs will be paid by the business and not by MiFID-II client accounts,” JP Morgan Asset Management, which had$1.9 trillion in assets at the end of June, said in statement.
A number of other asset managers, including Vanguard, Jupiter JUP.L, M&G PRU.L and Aberdeen ADN.L have also said they will pay research costs themselves.
Others, including hedge fund Man Group's EMG.L stockpicking unit GLG, Janus Henderson JHG.N and Schroders SDR.L, said they plan to pass research costs on to clients.
A JP Morgan Asset Management spokeswoman declined to give an estimate of how much its research costs will be.
Editing by Rachel ArmstrongOur Standards: The Thomson Reuters Trust Principles.
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06f636f9cff23ef76918d26d080a9f73 | https://www.reuters.com/article/us-jpmorgan-bitcoin/jpmorgan-handles-bitcoin-related-trades-for-clients-despite-ceo-warning-idUSKCN1BT2E3 | JPMorgan handles bitcoin-related trades for clients despite CEO warning | JPMorgan handles bitcoin-related trades for clients despite CEO warning
By David Henry3 Min Read
NEW YORK (Reuters) - JPMorgan Chase & Co JPM.N has been routing customer orders for bitcoin-related instruments, a spokesman said on Monday, despite the bank's chief executive's calling the crypto currency "a fraud."
Slideshow ( 2 images )
Like other Wall Street banks, JPMorgan acts as an agent for buyers and sellers of Bitcoin XBT, an exchange-traded note designed to track the value of the crypto currency.
JPMorgan does not take positions in the instrument with its own capital and routes the orders electronically to exchanges, JPMorgan spokesman Brian Marchiony said.
“They are not JPMorgan orders,” Marchiony said. “These are clients purchasing third-party products directly.”
JPMorgan’s relationship with Bitcoin XBT came into question over the weekend when the financial blog Zerohedge asked why the bank was involved with the trading after Chief Executive Jamie Dimon called bitcoin a fraud and said he would fire anyone at the bank who trades it.
Bitcoin is a digital currency that enables individuals to transfer value to each other and pay for goods and services outside of the regulated financial system.
Because it is not backed by any government and has been tied to crimes, including money laundering, hacking and drug trafficking, most financial institutions have stayed away from dealing in bitcoin.
Dimon captured that sentiment in his comments last week. “If we have a trader that trades bitcoin, I would fire them in a second, for two reasons: It is against our rules and they are stupid, and both are dangerous,” he said at an investor conference.
Even so, major financial firms including JPMorgan have invested in a technology called blockchain that underpins bitcoin transactions in hopes that it can be used for other purposes, such as settling ordinary trades.
Bitcoin prices fell last week to nearly $3,000 from $4,200 after Dimon spoke and China reportedly cracked down on crypto currency exchanges. But bitcoin rebounded with the new week, trading on the Bitstamp exchange BTC=BTSP at $4,025 on Monday.
Along with JPMorgan, more than a dozen banks, including Morgan Stanley MS.N, Goldman Sachs Group Inc GS.N and Credit Suisse Group AG CSGN.S, have acted as brokers for buying and selling Bitcoin XBT on Nasdaq's Stockholm-based exchange, according to Swedish online bank Nordnet AB.
Other exchanges want to trade, too. CBOE Holdings Inc CBOE.O has applied with U.S. regulators to handle a bitcoin futures contract and an exchange-traded fund.
“Like it or not, people want exposure to bitcoin,” CBOE CEO Edward Tilly said last week at the same conference where Dimon spoke.
Reporting by David Henry in New York; Additional reporting by Anna Irrera and John McCrank; Editing by Lauren Tara LaCapra and Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.
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19c3de38588cbdc121e094a467596351 | https://www.reuters.com/article/us-jpmorgan-china-idCAKBN27I0AZ?edition-redirect=ca | JPMorgan takes 71% in China securities business | JPMorgan takes 71% in China securities business
By Reuters Staff2 Min Read
HONG KONG (Reuters) - JPMorgan JPM.N will own 71% of its Chinese securities joint venture after completing the transaction to buy a 20% stake from one of its local partners, according to an exchange filing on Monday.
FILE PHOTO: A J.P. Morgan logo is seen in New York City, U.S., January 10, 2017. REUTERS/Stephanie Keith
The deal, which was first flagged in September, will see the Wall Street bank edge closer to full ownership of the securities business in China as geopolitical relations between the United States and China remain fragile.
It will also position JPMorgan as the foreign bank with the highest ownership stake in a mainland Chinese securities joint venture.
JPMorgan’s purchase was finalised just ahead of the Nov. 3 election in which the future of China’s relationship with the United States has been a centrepiece of the campaign.
The stake was put up for sale by state-owned Shanghai Waigaoqiao FTZ, a filing on the Shanghai United Assets and Equity Exchange in September showed.
JPMorgan was the only candidate that could raise its ownership with priority rights in the securities joint venture, the filing showed, as the remaining four shareholders had given up their rights to purchase the 20% stake.
A filing to the exchange on Monday showed JPMorgan paid 177 million yuan ($26.5 million) for the stake and the deal was completed on Oct. 23.
A JPMorgan spokesman declined to comment on the transaction.
The securities joint venture houses investment banking, research, equities and fixed income businesses.
The U.S. bank planned to hire at least 12 equity research analysts in China this year, Reuters reported in May, in its first major mainland hiring push.
Major competitors like Morgan Stanley MS.N, Goldman Sachs GX.N and UBS UBSG.S hold 51% of their securities operations and most banks plan to move to full ownership.
($1 = 6.6866 Chinese yuan renminbi)
Reporting by Scott Murdoch in Hong Kong and Samuel Shen in Shanghai; Editing by Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.
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3ea88d5db8c81809f642cb606205f10a | https://www.reuters.com/article/us-jpmorgan-consensys-quorum/consensys-acquires-jpmorgans-blockchain-platform-quorum-idUKKBN25L1MR?edition-redirect=uk | ConsenSys acquires JPMorgan's blockchain platform Quorum | ConsenSys acquires JPMorgan's blockchain platform Quorum
By Anna Irrera3 Min Read
NEW YORK (Reuters) - Brooklyn-based technology startup ConsenSys has acquired JPMorgan Chase & Co's JPM.N marquee blockchain platform Quorum, the companies said on Tuesday.
As part of the deal JPMorgan also made a strategic investment in ConsenSys, but the companies declined to disclose financial terms of the relationship, which will remain ongoing.
“We have acquired the Quorum IP, JPMorgan has made a strategic investment, and there is a commercial arrangement to continue to support JPMorgan in their projects,” ConsenSys Chief Executive and founder Joseph Lubin said in an interview, using an acronym for “intellectual property.”
The Quorum team will remain at JPMorgan and help with the transition over the next year and will later work on other blockchain projects, Umar Farooq, global head of blockchain at JPMorgan, said in an interview.
“We believe a platform like Quorum could thrive better in the hands of a software and services oriented organization,” Farooq said.
Reuters had reported in February that the companies were discussing a deal.
Blockchain emerged over a decade ago as the software powering cryptocurrency transactions. Since then, banks and other large corporations have been investing millions of dollars to develop and test a range of business applications using the nascent technology. Efforts have had mixed results, with few projects achieving significant impact.
JPMorgan built the Quorum blockchain internally using the ethereum network, the software that underpins ether, one of the most well known cryptocurrencies.
Quorum, which will remain open-source, is being used by the bank to run the Interbank Information Network, a payments network that involves more than 300 banks. The network and other bank projects running on Quorum will continue to operate using the platform, JPMorgan said.
ConsenSys, a prominent blockchain startup that grew rapidly during the 2017 crypto bubble, underwent a restructuring earlier this year to separate its software development business from its venture activities.
Reporting by Anna Irrera; editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
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0f54619cb9bf854a13782b62d52b0830 | https://www.reuters.com/article/us-jpmorgan-crypto-currencies/jpmorgan-sued-over-fees-for-cryptocurrency-purchases-idUKKBN1HI2T4?edition-redirect=uk | JPMorgan sued over fees for cryptocurrency purchases | JPMorgan sued over fees for cryptocurrency purchases
By Dena Aubin3 Min Read
NEW YORK (Reuters) - JPMorgan Chase & Co has been hit with a lawsuit in Manhattan federal court accusing it of charging surprise fees when it stopped letting customers buy cryptocurrency with credit cards in late January and began treating the purchases as cash advances.
A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files
Filed on Tuesday on behalf of a proposed nationwide class, the lawsuit said Chase JPM.N charged both extra fees and substantially higher interest rates on the cash advances than on the credit cards and refused to refund the charges when customers complained.
Chase spokeswoman Mary Jane Rogers declined to comment on the lawsuit but said the bank stopped processing credit card purchases of cryptocurrency on Feb. 3 because of the credit risk involved. Customers can use their Chase debit cards to buy cryptocurrency from their checking accounts without incurring cash advance charges, she said.
Several banks in Britain and the United States, including Lloyds Banking Group PlcLLOY.L, Virgin Money VM.L and Citigroup C.N, banned the use of credit cards to buy cryptocurrencies earlier this year after a dramatic fall in the value of bitcoin, the most popular virtual currency.
Bitcoin has fallen in value by more than half from a peak of almost $20,000 in December amid concerns about regulatory crackdown.
The named plaintiff in the lawsuit, Idaho resident Brady Tucker, was hit with $143.30 in fees and $20.61 in surprise interest charges by Chase for five cryptocurrency transactions between Jan. 27 and Feb. 2, his lawsuit said. Hundreds or possibly thousands of other Chase customers were hit with the charges, Tucker said.
Tucker called Chase’s customer service line to dispute the charges but the bank refused to remove them, according to the lawsuit.
With no advance warning, Chase “stuck the plaintiff with the bill, after the fact of his transactions, and insisted that he pay it,” the lawsuit said. A lawyer for Tucker could not be reached for comment.
The lawsuit accuses Chase of violating the U.S. Truth in Lending Act, which requires credit card issuers to notify customers in writing of any significant change in charges or terms. The lawsuit is asking for actual damages and statutory damages of $1 million.
The case is Brady Tucker et al v Chase Bank USA, U.S. District Court, Southern District of New York, No 18-3155
Reporting by Dena Aubin; Editing by Alexia Garamfalvi and Phil BerlowitzOur Standards: The Thomson Reuters Trust Principles.
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0f0418d9ef052a361fc5479181304115 | https://www.reuters.com/article/us-jpmorgan-cybersecurity-idUSKBN0K105R20141223 | JPMorgan data breach entry point identified: NYT | JPMorgan data breach entry point identified: NYT
By Reuters Staff2 Min Read
A sign outside the headquarters of JP Morgan Chase & Co in New York, September 19, 2013. REUTERS/Mike Segar
(Reuters) - A computer breach at JPMorgan Chase & Co JPM.N earlier this year could have been avoided if the bank had installed a simple security fix to an overlooked server in its network, the New York Times reported, citing people briefed on investigations.
In October, JPMorgan Chase revealed that names, addresses, phone numbers and email addresses of the holders of some 83 million accounts were exposed when the bank’s computer systems were compromised by hackers, making it one of the biggest data breaches in history.
The weak spot at the bank appears to have been a very basic one – the bank did not use a double authentication scheme, known as two-factor authentication, the paper reported. (nyti.ms/1zdvK32)
JPMorgan’s security team had apparently neglected upgrading one of its network servers with the dual password scheme, the newspaper said, citing people who did not want to be identified because the investigation into the attack was incomplete.
Officials at JP Morgan were not immediately available for comment outside regular U.S. business hours.
Earlier this month, U.S. regulators said they were stepping up efforts to examine financial institutions’ defenses to ward off cyber attacks, as a top FBI official warned of new “increasingly complex” threats to the financial sector.
Reporting by Supriya Kurane in Bengaluru; Editing by Ken WillsOur Standards: The Thomson Reuters Trust Principles.
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5dbfec87f17cc6bc1a0aa302ac1b8d53 | https://www.reuters.com/article/us-jpmorgan-cybersecurity-idUSKCN0HR23T20141003 | JPMorgan hack exposed data of 83 million, among biggest breaches in history | JPMorgan hack exposed data of 83 million, among biggest breaches in history
By Reuters Staff3 Min Read
(Reuters) - Names, addresses, phone numbers and email addresses of the holders of some 83 million households and small business accounts were exposed when computer systems at JPMorgan Chase & Co JPM.N were recently compromised by hackers, making it one of the biggest data breaches in history.
People walk inside JP Morgan headquarters in New York, October 25, 2013. REUTERS/Eduardo Munoz
The bank revealed the scope of the previously disclosed breach on Thursday, saying that there was no evidence that account numbers, passwords, user IDs, birth dates or Social Security numbers had been stolen.
It added that it has not seen “unusual customer fraud” related to the attack which exposed contact information for 76 million households and 7 million small businesses.
The people affected are mostly account holders, but may also include former account holders and others who entered their contact information at the bank’s online and mobile sites, according to a bank spokeswoman.
Security experts outside of the bank warned that the breach could result in an increase in crime as scammers will likely attempt to use the stolen information to engage in various types of fraud.
The bank’s customers should be on heightened alert for fraud, said Mark Rasch, a former federal cyber crimes prosecutor.
“All of this data is useful to hackers and identity thieves,” he said. “The kind of information that was stolen is not sensitive itself, but is frequently used to validate people’s identities.”
Tal Klein, vice president with the cybersecurity firm Adallom, said that the breach could undermine confidence in the security of banks and other companies that people assume are well protected from hackers.
“Criminals could literally take on the identities of these 83 million businesses and people. That’s the biggest concern,” he said.
“Until now the assumption has been that the companies that get breached are the ones that have poor security practices, but we know that JPMorgan had a good security program and that they invest heavily in this area,” he said. “So what we are waking up to is that the fundamental nature of security is broken.”
Still, JPMorgan advised customers on its website that it does not believe they need to change their passwords or account information.
Company spokeswoman Patricia Wexler said that the bank is not offering credit monitoring to its customers because no financial information, account data or personally identifiable information was compromised.
At the end of August, JPMorgan said it was working with U.S. law enforcement authorities to investigate a possible cyber attack. As with home break-ins, it can take victims of data attacks months to discover what, if anything, is missing.
Reporting by Tanya Agrawal in Bangalore, David Henry in New York and Jim Finkle in Boston.; Editing by Ted Kerr and Bernard OrrOur Standards: The Thomson Reuters Trust Principles.
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1e458a32b8c95497b49801e9ff779545 | https://www.reuters.com/article/us-jpmorgan-deutsche-handelsblatt/jp-morgan-ceo-says-has-no-interest-in-buying-deutsche-bank-handelsblatt-idUSKCN1N65Z3 | JP Morgan CEO says has no interest in buying Deutsche Bank: Handelsblatt | JP Morgan CEO says has no interest in buying Deutsche Bank: Handelsblatt
By Reuters Staff1 Min Read
FILE PHOTO: Jamie Dimon, CEO of JPMorgan Chase, takes part in a panel discussion about investing in Detroit at the Kennedy School of Government at Harvard University in Cambridge, Massachusetts, U.S., April 11, 2018. REUTERS/Brian Snyder/File Photo
FRANKFURT (Reuters) - JP Morgan JPM.N has no interest in buying Deutsche Bank DBKGn.DE the U.S. bank's chief executive told German daily Handelsblatt.
“It would not make any sense,” Jamie Dimon told the paper. “If you only buy a company just to consolidate it, it is almost impossible to do without killing the patient.”
Dimon told the paper that consolidation among Europe’s banks could make sense, and appealed for a common deposit insurance scheme in Europe.
Dimon’s remarks about Deutsche come on the same day that activist investor Hudson Executive Capital, led by JP Morgan’s former Chief Financial Officer, took a 3.1 percent ownership stake in Germany’s flagship lender.
Reporting by Edward Taylor; Editing by Alexandra HudsonOur Standards: The Thomson Reuters Trust Principles.
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988c0f263b94445c5a085801f0a7e9cf | https://www.reuters.com/article/us-jpmorgan-dimon/jpmorgans-dimon-says-childish-u-s-politicians-are-preventing-stimulus-package-idUKKBN27Y2D1?edition-redirect=uk | JPMorgan's Dimon says 'childish' U.S. politicians are preventing stimulus package | JPMorgan's Dimon says 'childish' U.S. politicians are preventing stimulus package
By Reuters Staff2 Min Read
NEW YORK (Reuters) - U.S. politicians are behaving like children by not passing a new stimulus bill that could help Americans whose income has been wiped out by the coronavirus pandemic, JPMorgan Chase & Co Chief Executive Jamie Dimon said on Wednesday at a New York Times conference.
“This is childish behavior on the part of our politicians,” Dimon said about an impasse between Democrats and Republicans over how much additional spending should be authorized.
The two parties should split the difference between the amounts they want to devote to coronavirus relief, he said.
“Just get it done,” he said, declining to blame one side over the other.
The issue came up again in Congress on Wednesday, as U.S. Senate Democratic leader Chuck Schumer said he and House of Representatives Speaker Nancy Pelosi had formally invited Senate Majority Leader Mitch McConnell and other Senate Republicans to bipartisan talks on relief legislation.
Earlier in the day, McConnell said Congress should aim for agreement on items where there is little disagreement. But he blamed Democrats for blocking earlier Senate Republican efforts to approve spending packages of $500 billion, which Democrats have called inadequate.
Dimon also advocated higher taxes to pay for stimulus spending, but said hikes have to be done in a way that does not harm economic growth.
“Taxing my income a little bit more, that does not hurt growth,” he said. “Taxing capital formation, over time, hurts growth. We should have a competitive international tax system for business.”
Reporting by David Henry in New; Editing by Lauren Tara LaCapra and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.
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137e82ad670a604a3065abb0564d349b | https://www.reuters.com/article/us-jpmorgan-funds-proxy-idUSKBN1511KJ | Despite Dimon's criticism, JPMorgan funds closely track ISS on executive pay | Despite Dimon's criticism, JPMorgan funds closely track ISS on executive pay
By Ross Kerber4 Min Read
BOSTON (Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon has been no fan of Institutional Shareholder Services and once called investors “lazy” if they cast votes in corporate elections based on recommendations from the leading proxy adviser or its rival.
JP Morgan CEO Jamie Dimon speaks at an event at JP Morgan's corporate centre in Bournemouth, southern Britain, June 3, 2016. REUTERS/Dylan Martinez/File Photo
But JPMorgan itself turns out to be a close follower of ISS, at least when it comes to proxy votes on pay, new data show.
JPMorgan funds voted in line with ISS 95 percent of the time when U.S. companies held advisory votes on their executive pay, according to securities filings over a four-year period analyzed by researcher Proxy Insight. That was the highest level of any asset manager at least the size of JPMorgan, which oversees $1.8 trillion.
Some investors may see the record as being at odds with Dimon’s criticism of the advisers, said Francis Byrd, an independent governance consultant, although proxy voting carries many nuances.
“It’s as much an art as a science,” Byrd said.
Proxy Insight’s findings, which it provided to Reuters News last week, come amid a debate over whether proxy advisers like ISS wield too much influence over some asset managers who blindly follow their voting recommendations. Proxy Insight found a number of fund managers who voted nearly all the time with ISS on the pay questions.
These included ProFund Advisors, which voted with ISS 100 percent of the time; AQR Capital Management, which voted with ISS 99.9 percent of the time; and an arm of Deutsche Bank, which voted with ISS 99.7 percent of the time.
Representatives of each of the three declined to comment.
In its voting, JPMorgan funds opposed executive pay 10 percent of the time, the research firm found, close to the 12 percent of the time ISS recommended against pay in recent years. Both were more critical of pay than other big fund firms like Vanguard Group and BlackRock Inc, which each opposed pay 5 percent of the time.
Dimon famously clashed with ISS and its rival Glass Lewis in 2015 after the advisers recommended votes against his own pay and backed an independent chairman. JPMorgan won both votes at its annual meeting that year. (reut.rs/2j968VH)
“God knows how any of you can place your vote based on ISS or Glass Lewis,” Dimon said at an investor conference shortly afterward. “If you do that you are just irresponsible, I am sorry. And, you probably aren’t a very good investor, either,” he said.
He added that “I know some of you here do it because you are lazy.”
Dimon has since said he does not believe investors should automatically delegate votes to a proxy adviser, said spokesman Joe Evangelisti.
JPMorgan did not make Dimon available, but spokeswoman Kristen Chambers said, “Each and every company vote is carefully reviewed and considered by our portfolio management team, and whether or not that happens to also be the proxy adviser’s view may be coincidental.”
In its voting guidelines, JPMorgan states ISS’ work forms “only the ‘base case’ voting recommendation and we will frequently take a differing view, based on the results of our engagement activity or our own insights.”
JPMorgan funds followed Glass Lewis’ recommendations 84 percent of the time, Proxy Insight found.
Reporting by Ross Kerber in Boston; Editing by Bernard OrrOur Standards: The Thomson Reuters Trust Principles.
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a5ee91c209ccbfcdb8e3f43ebc219435 | https://www.reuters.com/article/us-jpmorgan-hongkong-ipo-idUSKCN0XW1K8 | JPMorgan becomes first global bank to fall foul of Hong Kong's stricter IPO sponsorship rules | JPMorgan becomes first global bank to fall foul of Hong Kong's stricter IPO sponsorship rules
By Reuters Staff2 Min Read
A view of the exterior of the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City, May 20, 2015. REUTERS/Mike Segar
HONG KONG (Reuters) - JPMorgan Chase & Co JPM.N has become the first global investment bank to fall foul of Hong Kong's stricter IPO sponsorship rules, dealing a blow to its reputation in the region.
The Hong Kong stock exchange introduced tougher disclosure rules in 2014, which can make banks criminally liable if a listing prospectus is found to have misled investors.
It returned a listing application for Shenhua Health Holdings Ltd, a subsidiary of monosodium glutamate (MSG) producer Fufeng Group Ltd 0546.HK, on March 29 saying it needed more information, exchange data showed. JPMorgan Securities (Far East) Ltd acted as sole sponsor of the IPO.
Only seven other initial public offerings (IPOs) have been returned since the new rules came into effect. After applications are returned, companies must wait at least eight weeks before re-submitting an application.
The new rules aimed to crack down on sloppy work by underwriters and issuers that filed incomplete or inaccurate documents, particularly after a series of scandals at Chinese companies that ran into trouble after listing in Hong Kong.
JPMorgan declined to comment on Shenhua Health’s listing application on Thursday. Fufeng Group, the world’s largest producer of food flavor enhancer MSG, didn’t return a Reuters request for comment after regular business hours.
The sponsors of the previous seven listings on the stock exchange’s main board and Growth Enterprise Market (GEM) that needed further vetting were all from China and Hong Kong, exchange data showed.
Reporting by Elzio Barreto; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.
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53c81e882dfc82f9e7808b4b4156369a | https://www.reuters.com/article/us-jpmorgan-index-idUSKCN0XW0TC | China weightage slashed in new JPMorgan Asia credit index | China weightage slashed in new JPMorgan Asia credit index
By Reuters Staff2 Min Read
People walk by the JP Morgan & Chase Co. building in New York in an October 24, 2013 file photo. REUTERS/Eric Thayer/Files
HONG KONG (Reuters) - U.S. investment bank JPMorgan has launched a new Asia ex-Japan credit index designed to reduce concentration risk by limiting the amount outstanding that can be included in its benchmark from each of the eligible countries.
The ceiling set at twice the average of the index, would mean that the weight of China, the largest contributor to the benchmark, would be cut to 20.5 percent in the JACI Diversified from 40.2 percent in the existing JACI.
“The issuance trends since 2012 has disproportionately increased the weight of China in the existing JACI index leading to large concentration risks in the benchmark,” said a JPMorgan spokesman referring to the index which is tracked by managers controlling $35 billion to $45 billion in assets.
“The spirit of the JACI Diversified is to effectively represent Asian credit markets while limiting concentration to a given country.”
The Philippines on the other hand would see its weightage rise to 12.03 percent from 7.21 percent in the old index.
Sovereign issuers would comprise a higher proportion of the new index at 20 percent versus 14 percent in the old benchmark, while the property sector, a large source of bond supplies in recent years, would see its contribution drop to 9.36 percent from 12.61 percent.
The JACI Diversified benchmark shares the inclusion criteria and composition of the widely followed JACI .JPMACI, with both indexes returning 6.8 percent since inception, the investment bank said in a report.
Reporting by Umesh Desai; Editing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.
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88ece91435d0089ead1340ea888a839e | https://www.reuters.com/article/us-jpmorgan-regulator-fine/jpmorgan-chase-to-pay-250-million-for-failings-in-asset-wealth-business-idUKKBN2842LM?edition-redirect=uk | JPMorgan Chase to pay $250 million for failings in asset, wealth business | JPMorgan Chase to pay $250 million for failings in asset, wealth business
By Michelle Price2 Min Read
FILE PHOTO: A woman passes by a JPMorgan Chase bank in Times Square in New York City, U.S., March 7, 2019. REUTERS/Brendan McDermid
WASHINGTON (Reuters) - JPMorgan Chase & Co has agreed to pay $250 million for risk management and other control failings in its asset and wealth management business, a U.S. regulator said on Tuesday, in the second chunky penalty for the bank in less than two months.
The Office of the Comptroller of the Currency (OCC) said it found that JPMorgan’s risk management practices were “deficient and it lacked sufficient controls to avoid conflicts of interest.”
The bank has since remediated the deficiencies that led to this action, it said.
“We are committed to delivering best-in-class controls across our business, and we have invested significantly in and enhanced our controls platform over the last several years to address the issues identified,” a spokesman for the bank said in a statement.
JPMorgan boasts one of the world’s largest and most complex asset and wealth management businesses, with $1.3 trillion in fiduciary assets and $27.8 trillion of non-fiduciary custody assets, the OCC said. The bank also provides a broad range of investment strategies to its fiduciary clients through a variety of investment vehicles.
For several years, however, JPMorgan operated a weak management and control framework for its fiduciary activities and had an insufficient audit program for, and inadequate internal controls over, those activities, the OCC said.
In its consent order with the bank, the OCC did not require changes to the way the bank manages client assets.
Tuesday's OCC penalty comes after the U.S. derivatives regulator fined here JPMorgan $920 million in September to settle federal U.S. market manipulation probes into its trading of metals futures and Treasury securities, in a landmark case for the agency.
Reporting by Michelle Price; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.
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c8e2f96de551b0faa3f19d31cd65b28a | https://www.reuters.com/article/us-jpmorgan-results-idUSKBN26Y1FI | JPMorgan executives offer slightly brighter view on pandemic recession | JPMorgan executives offer slightly brighter view on pandemic recession
By Noor Zainab Hussain, David Henry5 Min Read
(Reuters) - JPMorgan Chase & Co JPM.N executives are cautiously optimistic that the coronavirus pandemic will not send the economy into the worst possible tailspin, and feel confident enough in the bank’s financial position to start repurchasing shares again soon if regulators allow.
Their comments came on Tuesday after JPMorgan reported much stronger-than-expected results for the third quarter, beating profit estimates and setting aside relatively little money for loan losses.
Only one of its four major units – consumer banking – saw revenue and profits decline, and even those customers are holding up relatively well, Chief Financial Officer Jennifer Piepszak said. Other businesses, including trading, investment banking, commercial lending and wealth management, posted gains.
Although JPMorgan expects loan losses to escalate, and added another $611 million to its loan loss reserves, that figure is tiny compared to the previous quarter and smaller than what many analysts had expected.
JPMorgan has the financial wherewithal to handle those losses and start buying back shares again if regulators will allow it, Chief Executive Jamie Dimon said. The Federal Reserve has ordered big banks to halt buyback programs and limit dividends through year-end.
“We’ll be patient, but we have tremendous amount of wherewithal to do both when the time comes,” he said. “And I hope we’re allowed to do it before the stock is much higher.”
JPMorgan shares fell 1.8% to $100.57 in morning trading. The stock is down 27.4% year-to-date.
As the largest U.S. bank and one of the biggest global lenders, JPMorgan’s results are viewed as a barometer of the economy and financial markets.
Its profit rose 4% to $9.4 billion, or $2.92 per share, in the third quarter, compared with $9.1 billion, or $2.68 per share, in the year-ago period.
Related CoverageJPMorgan sticks with plan to build giant New York headquarters
Analysts had expected its profit to fall, with a consensus estimate of $2.23 per share, according to Refinitiv.
JPMorgan’s revenue fell slightly to $29.9 billion, but still came in ahead of expectations.
Trading was a bright spot for the third consecutive quarter, as market volatility caused volumes to swell. Revenue there jumped 30% to $6.6 billion.
Analysts cheered the results. Evercore ISI’s Glenn Schorr called JPMorgan “the Rickey Henderson of banks,” a reference to a celebrated Major League Baseball star.
“JPMorgan put up as strong of a quarter as we could have hoped for,” he wrote in a note to clients.
Executives were careful not to offer too sunny an outlook, especially because Congress has failed to pass another stimulus bill. Lockdowns intended to prevent the virus from spreading have put millions out of work and shuttered thousands of businesses, causing the worst recession in decades.
JPMorgan looks at a range of possible economic outcomes when setting aside reserves, executives said. While its “base” case has improved from the second quarter, it could very well deteriorate again.
“There’s so much uncertainty,” said Dimon. “If better outcomes happen, we are over-reserved by $10 billion. If the double-dip happens, we would be under-reserved by $20 billion.”
FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/File Photo
So far this year, JPMorgan has added $19.4 billion to its credit loss provisions, more than four times the comparable figure for 2019.
Low interest rates hurt JPMorgan’s results in a predictable way, as the U.S. Federal Reserve is keeping rates at nearly zero to offset the impact of the pandemic.
JPMorgan’s net interest income fell 9% to $13.1 billion in the third quarter and its net interest margin dropped to 1.82%. Those metrics are closely watched by investors to show how much central-bank rate policies are affecting income, and how well banks are managing their balance sheets.
JPMorgan maintained its forecast for full-year interest income at about $55 billion, but said adjusted annual expenses will be about $66 billion, worse than its prior forecast of $65 billion.
JPMorgan’s results came in contrast to Citigroup Inc C.N, which also reported earnings on Tuesday. Citigroup beat analyst estimates but executives offered a less optimistic economic outlook, especially for its consumer business.
Goldman Sachs Group Inc GS.N, Wells Fargo & Co WFC.N and Bank of America Corp BAC.N are scheduled to report results on Wednesday, with Morgan Stanley MS.N on Thursday.
Reporting by Noor Zainab Hussain in Bengaluru and David Henry in New York; Writing by Anirban Sen and Lauren Tara LaCapra; Editing by Saumyadeb Chakrabarty and Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.
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7f854245e4d47b2379da0be8fa372fcb | https://www.reuters.com/article/us-jpmorgan-results-idUSKCN0XA128 | JPMorgan beats Wall Street expectations in tough quarter for banks | JPMorgan beats Wall Street expectations in tough quarter for banks
By Sweta Singh, David Henry4 Min Read
(Reuters) - JPMorgan Chase & Co JPM.N, the No. 1 U.S. bank by assets, reported a quarterly profit that topped low market expectations as lower costs and better-than-expected trading revenue helped soften the blow from a fall in investment banking fees.
The drop in profit was the first in five quarters, but investors focused on the positives, helping to boost the shares of the bank and those of its rivals on Wednesday.
JPMorgan is the first U.S. bank to report results for what has generally been seen as the banking industry’s worst start to a new year since the 2007-2008 financial crisis.
Banks around the world have been hit by a slide in commodity and oil prices, a slowdown in China, near-zero interest rates, mounting regulatory costs and hefty capital requirements.
JPMorgan’s chief financial officer, Marianne Lake, said the bank may boost provisions to cover soured energy loans by another $500 million this year, on top of the $529 million taken in the first quarter.
Lake said there was a “high degree of variability” in that estimate, but added that the bank was not seeing signs of a broad contagion and did not expect to endure significant losses.
Even though oil prices have recently improved a bit, this was not enough to help the sector recover, Lake said on a call with analysts. Much of JPMorgan’s exposure relates to natural gas, whose prices remain depressed, she said.
JPMorgan’s exposure to oil and gas loans stood at about $44 billion as of Dec. 31.
Total provisions for credit losses nearly doubled to $1.82 billion in the latest quarter, mainly due to reserve increases related to the oil and gas and metals and mining sectors.
People walk by the JP Morgan & Chase Co. building in New York in an October 24, 2013 file photo. REUTERS/Eric Thayer/Files
Apart from shrugging off JPMorgan’s cautious comments about the energy sector, the market also took little heed of a report by a U.S. banking regulator that said the bank was among eight big lenders that didn’t have credible plans for winding down operations during a crisis without public money.
JPMorgan Chief Executive Jamie Dimon also struck a positive note, saying “the U.S. consumer remains healthy and consumer credit trends are favorable” and that he did not expect a recession in 2016.
BEST IN CLASS
JPMorgan’s results may be as good as it gets for the banks in the quarter, analysts said.
“We expect (the) results will be best in class and may be a rare example of a bank stock this quarter where consensus estimates could remain steady post results,” Goldman Sachs analyst Richard Ramsden wrote in a client note.
JPMorgan’s net income fell 6.7 percent to $5.52 billion in the quarter ended March 31. The bank earned $1.35 per share, handsomely beating the average estimate of $1.26, according to Thomson Reuters I/B/E/S.
Total revenue fell 3 percent to $24.08 billion, but beat the average estimate of $23.40 billion. Revenue from fixed-income trading - often JPMorgan's most volatile business - fell 13.4 percent to $3.60 billion. (bit.ly/1S9NNDF)
Fourteen of 29 analysts covering the company lowered their earnings per share estimates by an average 1.5 percent in the past 30 days, according to Reuters data.
JPMorgan’s investment banking revenue slumped 24.5 percent on lower debt and equity underwriting fees, even though the bank topped the global league table with $1.22 billion in fees during the quarter, according to Reuters data.
Total non-interest expenses fell 7 percent to $13.84 billion, helped by lower legal costs.
JPMorgan's shares were up about 4.5 percent at $61.96 at midday. Bank of America Corp BAC.N and Citigroup were up 4 percent and 5.5 percent respectively.
Reporting by Sweta Singh; Additional reporting by David Henry and Tenzin Pema; Editing by Ted KerrOur Standards: The Thomson Reuters Trust Principles.
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841430adc4be3fb2c8f45681156dfdb8 | https://www.reuters.com/article/us-jpmorgan-results/jpmorgan-misses-profit-estimates-as-bond-trading-slumps-idUSKCN1P91BE | JPMorgan misses fourth-quarter profit estimates as bond trading slumps | JPMorgan misses fourth-quarter profit estimates as bond trading slumps
By Elizabeth Dilts, Siddharth Cavale4 Min Read
(Reuters) - JPMorgan Chase & Co JPM.N missed profit estimates for the fourth quarter as a slump in bond trading revenue overpowered strong consumer loan growth and record revenues.
It was the first time JPMorgan Chase, the largest U.S. bank by assets, has underperformed earnings-per-share expectations in 16 quarters, according to Barclays equity analyst Jason Goldberg.
JPMorgan was the second large U.S. bank to point the finger at choppy markets in December for its bond revenue losses. Citigroup Inc C.N on Monday posted a sharp drop in fixed income revenue, blaming widening credit spreads, or the premium investors demand for holding corporate bonds over safer U.S. Treasury securities.
Goldman Sachs GS.N and Morgan Stanley MS.N, which report earnings later this week, are likely to say they experienced the same effects in their large fixed-income trading businesses.
Well Fargo & Co WFC.N, which relies less on trading, said on Tuesday that fourth-quarter revenue missed expectations as revenue across all its banking units declined, especially at community banking.
Despite an 18 percent drop in JPMorgan’s quarterly fixed-income revenue, Chief Financial Officer Marianne Lake said one down quarter does not make a trend.
“The outlook for growth in the economy is still strong,” she said on an analyst call. “The consumer is still strong and healthy. We are expecting to see maybe slower but still global growth going forward.”
Its shares edged up 0.7 percent to close at $101.68.
(GRAPHIC: JPMorgan Corporate & Investment Bank Revenue breakdown - tmsnrt.rs/2T1tf65)
The bank increased its provision for credit losses by $240 million from a year earlier, with roughly two-thirds for commercial and industrial loans.
Lake said the rise in provisions were “driven by literally a handful of names across a handful of sectors.”
FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files
‘MORE PARANOID THAN YOU ARE’
Asked about any broader concerns over clients’ credit-worthiness, Lake said, “There’s nothing to see right now in our portfolios and we’re looking. We’re more paranoid than you are.”
JPMorgan’s equities trading revenue rose 2 percent from a year earlier, helped by strength in prime brokerage, which serves hedge fund clients.
Investment banking revenue rose 3 percent on higher advisory fees, even as underwriting fees declined.
Revenue in asset and wealth management fell 5 percent as market declines translated into lower asset levels and management and performance fees.
Trading desks at banks have been shaken by global growth concerns and the ongoing trade war between the United States and China. Bank stocks underperformed the S&P 500 index .SPX in 2018 by 13 percent.
On a conference call with reporters, JPMorgan Chief Executive Officer Jamie Dimon said the partial U.S. government shutdown will hurt the U.S. economy if it persists.
“We don’t know exactly what it is going to do, but it is not a positive,” he said.
JPMorgan said expenses rose 6 percent, outpacing revenue growth as it invested in technology, marketing and real estate.
Net income increased 67 percent to $7.07 billion, or $1.98 per share, from a year ago, when it took a one-time charge due to the U.S. tax overhaul. But it missed analysts’ average estimate of $2.20 per share, according to IBES data from Refinitiv.
Net interest income was up 9 percent to $14.5 billion on higher interest rates in 2018.
The bank’s average core loan book grew 6 percent from the year-earlier quarter.
Revenue rose 4.1 percent to $26.80 billion, shy of the average analyst expectation of $26.83 billion.
Reporting by Elizabeth Dilts and Siddharth Cavale; Additional reporting by David Henry; Writing by Meredith Mazzilli; Editing by Neal Templin, Saumyadeb Chakrabarty and Jeffrey BenkoeOur Standards: The Thomson Reuters Trust Principles.
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cf0a6dfe25c7e6c8f9df0e58f9083c78 | https://www.reuters.com/article/us-jpmorgan-senate/jpmorgan-pressed-by-senate-democrats-on-racial-discrimination-reports-idUKKBN1YO2A6?edition-redirect=uk | JPMorgan pressed by Senate Democrats on racial discrimination reports | JPMorgan pressed by Senate Democrats on racial discrimination reports
By Pete Schroeder2 Min Read
FILE PHOTO: People pass the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City, May 20, 2015. REUTERS/Mike Segar
WASHINGTON (Reuters) - A group of five U.S. senators sent a letter on Thursday to JPMorgan Chase & Co., asking it to explain what it was doing to address what they described as “a troubling list of discriminatory practices” related to race.
The letter was signed by five prominent Democrats, including presidential candidate Elizabeth Warren and the top Democrat on the Senate banking panel, Sherrod Brown.
The letter referred to a New York Times article last week that reported here cases of racial discrimination at some of the bank's branches in the Phoenix, Arizona area.
In the letter, the lawmakers ask for details on where the bank is opening and closing branches, questioning how it is serving white and minority neighborhoods. It also requests a history of all regulatory penalties imposed on the bank related to discrimination.
The letter also asks the bank to explain its efforts to boost diversity in its senior ranks, and other policies the bank has in place to ensure no one is improperly treated on the basis of race.
JPMorgan spokeswoman Patricia Wexler said the bank welcomes “the chance to continue the dialogue.”
Earlier this month, Jamie Dimon, the bank’s chief executive, told employees he was “disgusted by racism and hate in any form” in a memo sent shortly after the New York Times report was published. He also vowed to improve the bank’s practices.
Reporting by Pete Schroeder; additional reporting by Elizabeth Dilts Marshall; Editing by Rosalba O’BrienOur Standards: The Thomson Reuters Trust Principles.
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76b3f09ab9d1ac2311752ad8cc09ec75 | https://www.reuters.com/article/us-jpmorgan-tax-idUSKBN1FC1JH | JPMorgan rolls out $20 billion investment plan after tax gains | JPMorgan rolls out $20 billion investment plan after tax gains
By Sweta Singh, David Henry3 Min Read
(Reuters) - JPMorgan Chase & Co JPM.N unveiled a $20 billion investment plan on Tuesday to hike wages, hire more, open new branches and expand its business as it takes advantage of sweeping changes to the U.S. tax law and a more favorable regulatory environment.
The bank joined several other U.S. companies that have already announced spending plans after the federal tax overhaul was signed into law in December, bringing lower corporate rates and other changes.
In the most explicit use of tax savings announced by any major bank, JPMorgan said it would raise wages for 22,000 employees by an average of 10 percent, to between $15 and $18 per hour, hire 4,000 employees and add up to 400 Chase branches.
The five-year plan comes after Chief Executive Jamie Dimon’s push to ramp up investment in businesses as the bank has finished the majority of work needed to clean up troubled home mortgages and comply with tougher capital requirements following the 2007-2009 financial crisis.
The largest U.S. bank by assets will also increase small business lending by $4 billion and increase loans to customers seeking affordable homes by 25 percent to $50 billion.
Analysts expect JPMorgan to save about $4 billion a year on taxes because of the new law, but have worried that banks would quickly compete away the savings to take business from one another.
Dimon has acknowledged some of that will happen, but to varying degrees and at different rates in the bank’s assorted business lines.
He had set the stage for Tuesday’s announcement in a post-earnings conference call on Jan. 12, when he said new spending would eat into the bank’s tax savings but enhance future growth.
“It isn’t like a giveaway,” he said on the call.
Some analysts have described the bank’s aggressive moves in credit cards and commercial lending as examples of a strategy Dimon is pursuing to use financial strength to take business from competitors.
JPMorgan is first or second in market share in many of its businesses. That has made Dimon think that regulators would not allow it to make acquisitions to become bigger out of concern for risk to the financial system.
In a statement on Tuesday, Dimon said “having a healthy, strong company allows us to make these long-term, sustainable investments.”
The bank will also increase community-based philanthropic investments by 40 percent to $1.75 billion over five years, it said.
JPMorgan employed 252,539 people worldwide at year-end, some 134,117 of which work in Chase consumer businesses which include the branch, small business and mortgage operations that are the focus of the new spending and hiring.
JPMorgan’s shares were down 0.03 percent $114.30 shortly after the market opened in New York. The stock had risen nearly 37 percent in the past 12 months through Monday, outperforming the S&P 500 index’s 25 percent increase.
Reporting by Aparajita Saxena and Sweta Singh in Bengaluru and David Henry in New York; Editing by Saumyadeb Chakrabarty and Meredith MazzilliOur Standards: The Thomson Reuters Trust Principles.
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08acc3a088d6dc40a58bf8dc64971de5 | https://www.reuters.com/article/us-jpmorgan-trades/analysis-the-core-problems-with-jpmorgans-failed-trades-idUSBRE84D04X20120514 | Analysis: The core problems with JPMorgan's failed trades | Analysis: The core problems with JPMorgan's failed trades
By David Henry, Carrick Mollenkamp8 Min Read
(Reuters) - JPMorgan Chase & Co lost at least $2 billion in its failed hedging strategy not only because it was sloppy, but because it grew too big in a rarified market of complex financial instruments that it had created.
The strategy involved credit default swaps, a kind of derivative that was at the center of the 2008 financial crisis. The swaps were originally used to hedge the bank’s exposure to other investments it owns and included contracts tied to North American investment grade and junk corporate bonds, as well as bonds in Europe and Asia.
JPMorgan helped invent the market for such swaps, known as “synthetic” positions because they trade risk without trading the actual bonds. But two things made these particular positions untenable and costly for JPMorgan, according to traders in the market and derivatives experts.
First, as bond markets shifted and forced JPMorgan to realign its hedges, the bank layered swap on top of swap, complicating the structure and increasing the risk that its hedges would fail to offset losses from one swap with gains from another.
Second, the sheer size of JPMorgan’s swap position became more than the thinly traded market could easily manage. The lack of liquidity meant the exit door was too small for JPMorgan to fit through quickly once the trades started to deteriorate.
Making matters worse, because JPMorgan was so dominant in this market it became clear to hedge funds and other trading entities that it was isolated and at risk - providing opportunities for those who could successfully trade against the bank’s position. The complexity of the trades made it difficult for the bank to stay on top of the risks as its position worsened.
Jamie Dimon, JPMorgan’s CEO, has acknowledged sloppy execution and oversight of the trades. And he said it could take the rest of this year or longer to unwind the positions. He has declined to give details about how illiquid the positions are, but has said the bank could lose another $1 billion or more before the company can trade them away. Competing traders could force JPMorgan to pay even more to exit the trades, now that many have figured out details of the bank’s position.
COSTS MOUNTING
The effects of JPMorgan’s stumble are still being tallied.
Though the bank can easily absorb a loss of $2 billion or more, its credit rating was cut on Friday by Fitch Ratings and its reputation for avoiding problems was dented. Dimon’s calls to ease pending regulations have lost credibility. After all, the regulations are supposed to prevent banks from taking big risks of this kind with their balance sheets. On Friday, the bank’s shares plunged more than 9 percent, wiping about $15 billion off its market value.
The bank is investigating how it got into the mess, and it is expected this week to accept the resignation of Ina Drew, the New York-based head of the Chief Investment Office where the trades were made, and ask for the resignations of two of her subordinates, London-based Achilles Macris and Javier Martin-Artajo, according to sources familiar with the matter.
The lobby of JP Morgan headquarters is photographed through it's front doors in New York. REUTERS/Eduardo Munoz
A JPMorgan spokesman declined to comment for this story.
JPMorgan created the credit default swap market in the 1990s, when a team of its financial engineers designed the instruments so institutions could hedge, or speculate on, changes in the creditworthiness of bonds. In 2001, the bank launched an index of swaps that helped pave the way for the instruments to be actively traded.
At the root of the losses, traders at other firms say, were bets tied to debt through an index known as CDX.NA.IG.9, which tracks credit default swaps on about 127 investment grade companies in North America, including Target, Home Depot, Kraft Foods, Wal-Mart and Verizon Communications.
The position came to consist of layers of index positions that were both for and against corporate creditworthiness getting worse. Some of the positions were supposed to offset, or neutralize, one another. But traders say the risk that the layers would not work together as intended increased as more were added.
For two decades, “financial institutions have been gambling, and often losing, based on assumptions that historical correlations will remain constant or converge,” said Frank Partnoy, a former derivatives trader who writes books on the instruments and teaches law at the University of San Diego.
DUMB AND SMART TRADES
Some traders believe JPMorgan’s assumptions began to go awry early this year. One position in favor of a broad improvement in corporate creditworthiness lost money when credit weakened. Worse, a hedge on that position lost money, too, when credit ratings fell for fewer companies than the bank expected in that situation.
The growing problem in the layers of positions probably stayed below the surface because of the way the portfolio was constructed, said Janet Tavakoli, an expert in derivatives and structured financial instruments.
“The nature of JPMorgan’s large CDS book is that even a fool will appear to be making money as revenues pour in” from selling protection against default, said Tavakoli, adding that in her view the kind of valuation models JPMorgan uses “cannot distinguish between dumb trades and smart trades.” The overwhelming flaw is that assumptions can be manipulated - whether intentionally or otherwise - so that an income stream that isn’t hedged appears to be hedged, she said.
But hedge funds and other institutions in the market smelled weakness and dozens took advantage of the bank, according to traders. Reports by the Wall Street Journal and Bloomberg in early April about the bank’s giant positions only made awareness of JPMorgan’s problem and its isolation greater.
While Dimon has declined to describe the specific positions, he said the bank made the portfolio “more complex” as it tried to “rehedge” its positions over time.
EMBARRASSING
The losses from these trades are embarrassing for JPMorgan not only because the bank helped invent the market, but because the trades themselves are designed to protect the bank from losses. Like insurance policies, the contracts give a buyer the right to collect a payment from a seller if a bond goes into default. As market demand for these insurance instruments increased, banks created ways to trade cross-sections, or tranches, of the synthetic indices.
Now JPMorgan, which emerged from the financial crisis with relatively few wounds and enormous new power and influence, has, by Dimon’s own admission, lost credibility because of its mishandling of derivatives.
JPMorgan’s size also is an issue. It became the biggest U.S. bank as measured by assets by coming through the financial crisis in stronger shape than competitors. When it took over failed consumer bank Washington Mutual in 2008, it picked up $307 billion in assets to manage, and it put billions of dollars into the Chief Investment Office. Since then customers have been making deposits at the bank faster than it can lend the money out, which has left more funds for the CIO to invest.
It earned hundreds of millions of dollars from these investments in recent years. But after giving back many of those profits with this debacle, tighter controls of the unit will likely reduce its potential to earn money from investing excess cash. Weaker competitors Bank of America Corp and Citigroup Inc, as well as European banks, have shrunk their balance sheets, which has made JPMorgan even bigger in proportion to others.
Now it is harder for JPMorgan to find enough buyers to take over its losing swaps at what it considers reasonable prices.
Dimon does not like the pain, but says the bank has the capital to endure it. “We want to maximize the economic value of these positions and not panic or do anything stupid,” he told analysts. “We’re willing to bear the volatility, and that’s life.”
Reporting by David Henry, Carrick Mollenkamp, Matthew Goldstein, Jennifer Ablan and Daniel Wilchins in New York, Edward Taylor in Frankfurt and Rick Rothacker in Charlotte, North Carolina.; Editing by Alwyn Scott, Martin Howell and Ian GeogheganOur Standards: The Thomson Reuters Trust Principles.
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ebe59385262254e46d7eceb09561e565 | https://www.reuters.com/article/us-jpmorgan-workers-pay/jpmorgan-chase-may-freeze-some-salaries-while-paying-traders-higher-bonuses-source-says-idUKKBN28A2UV?edition-redirect=uk | JPMorgan Chase may freeze some salaries while paying traders higher bonuses, source says | JPMorgan Chase may freeze some salaries while paying traders higher bonuses, source says
By Reuters Staff2 Min Read
FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/Files
(Reuters) - JPMorgan Chase & Co plans to freeze salaries for most employees with titles of vice president and above even as it expects to increase bonuses for some traders as much as 20%, according to a person familiar with the matter.
The plans come as bank executives grapple with next year’s budgets and consequences of the COVID-19 pandemic, which include low interest rates and higher costs for loan losses even as trading revenue has surged.
As part of the incentive pay for traders, bonuses increase when market revenue rises. Wall Street firms routinely report higher compensation costs for traders after markets have been strong.
“Traders obviously had a very good year and you would expect them to be up,” the source said.
At the same time, the bank has been keen to show that it is holding the line on expenses broadly. “The bank’s bonus pools this year are generally down,” the person said.
The decisions were first reported by Bloomberg News.
Payout expectations for traders could still change with results in December.
Reporting by Dania Nadeem in Bengaluru and David Henry; Editing by Devika Syamnath and Cynthia OstermanOur Standards: The Thomson Reuters Trust Principles.
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08630a208f31a5ad2c4baff60977dd96 | https://www.reuters.com/article/us-js-global-ipo/js-global-pulls-hong-kong-listing-amid-trade-gloom-sources-idINKBN1X503W?edition-redirect=in | JS Global pulls Hong Kong listing amid trade gloom - sources | JS Global pulls Hong Kong listing amid trade gloom - sources
By Reuters Staff2 Min Read
HONG KONG (Reuters) - Household appliances maker JS Global Lifestyle Company Ltd 1691.HK pulled its initial public offering of up to $464 million on Saturday, the third shelved float in Hong Kong so far this year, two sources told Reuters.
JS Global, which owns Chinese kitchen-appliances maker Joyoung and U.S. home-appliances maker SharkNijia, informed investors on Friday that it planned to price the IPO at the bottom of the indicative range of HK$5.55 to HK$7.25 a share, sources added. That meant the company could raise about $355 million by selling 500 million primary shares at HK5.55 apiece.
Backed by Chinese private-equity firm CDH Investments, JS Global, however, could not secure enough solid orders and had to cancel the IPO, sources said.
“The company has been trying to sell a story about U.S.-China synergy, but several investors are concerned that trade tensions would weigh on its business prospects in both countries,” said one of the sources.
JS Global did not immediately respond to a request for comment. The sources declined to be identified as they were not authorized to speak on the matter.
Reporting by Julie Zhu; Editing by Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.
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92c1818c8869cf97b36aaa9d7b618607 | https://www.reuters.com/article/us-julius-baer-china-exclusive-idINKBN27F09L?edition-redirect=in | Exclusive: Julius Baer plans wealth management joint venture in China - sources | Exclusive: Julius Baer plans wealth management joint venture in China - sources
By Sumeet Chatterjee, Brenna Hughes Neghaiwi4 Min Read
HONG KONG/Zurich (Reuters) - Swiss private bank Julius Baer Gruppe AG BAER.S plans to set up business in China in partnership with a local financial firm as part of its strategy to boost growth in Asia, people with direct knowledge of the matter told Reuters.
FILE PHOTO: The company's logo is seen at the headquarters of Swiss private bank Julius Baer in Zurich, Switzerland June 22, 2020. REUTERS/Arnd Wiegmann/File Photo
Julius Baer aims to establish a majority-owned joint venture to tap the rapidly growing wealth in the world’s second-largest economy and has started looking for a partner, said the people.
The plan comes as China, the world’s second-largest country by number of billionaires, has been rapidly opening up its financial sector for bigger foreign participation.
If successful, Julius Baer will be the first major private bank to set up a wealth management joint venture in China. Its plan to establish onshore presence is reported here for the first time.
Booming stock markets and a flurry of new listings have created five new dollar billionaires in China each week for the past year, according to the Hurun China Rich List 2020 released earlier this month.
China’s wealth management industry is the fastest-growing in the world but has historically been linked to the sale of high-risk, illiquid investment products and lax regulatory oversight.
That made offshore business - where banks help Chinese clients manage their riches in locations such as Hong Kong, Singapore and Zurich - the preferred route for most global wealth management firms.
In the past year, however, Chinese authorities have cracked down on dubious practices in the domestic wealth management industry as part of a broader push to reduce debt and limit the sale of risky products. They have also made it easier for foreigners to set up wealth management joint ventures.
Julius Baer, Switzerland’s third-largest listed lender, will likely take a decision on its Chinese partner next year before starting the formal license application process, said the people.
The people declined to be identified as the bank’s plans are confidential. A spokesman for Julius Baer in Zurich declined to comment on the matter.
‘BIG PRIZE’
An onshore presence in China will significantly bolster Julius Baer's position in Asia, where it competes with compatriots UBS Group AG UBSG.S and Credit Suisse Group AG CSGN.S as well as a host of other regional and global wealth managers.
“Mainland China of course is always the big prize,” Julius Baer Chief Executive Philipp Rickenbacher said at a conference in Zurich last month.
“But we’ve seen that, by being present locally, many firms have lost a lot of money in recent years ... Is it impossible? No, and we’re working intensely on continuously exploring these possibilities.”
The China business plans come as the bank is also weighing re-establishing presence in the United States to help its Latin American clients book assets.
The bank saw rapid growth over recent years following a period of takeovers and buoyant hiring.
But a money laundering sanction by Switzerland’s finance watchdog earlier this year barring Julius Baer from making large and complex acquisitions - as well as a cost-cutting exercise which started last year - have complicated its path to growth.
It has been looking to emerging markets, as well as a build-out of some of its European operations to bring in fresh assets.
Reporting by Sumeet Chatterjee in Hong Kong and Brenna Hughes Neghaiwi in Zurich; Editing by Christopher CushingOur Standards: The Thomson Reuters Trust Principles.
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e8b1ec5d7d6a07c6379264aba884a196 | https://www.reuters.com/article/us-julius-baer-fifa/julius-baer-to-pay-nearly-80-million-in-fifa-corruption-case-idUSKBN27P0HK?il=0 | Julius Baer to pay nearly $80 million in FIFA corruption case | Julius Baer to pay nearly $80 million in FIFA corruption case
By Reuters Staff2 Min Read
FILE PHOTO: People walk past a branch of Swiss bank Julius Baer in Zurich, Switzerland, Feb. 3, 2020. REUTERS/Arnd Wiegmann
ZURICH (Reuters) - Julius Baer has made an agreement with the U.S. Department of Justice (DoJ) to settle allegations over its role in corruption surrounding global soccer body FIFA, the bank said on Monday.
The bank has taken a provision of $79.7 million to cover expected fines after agreeing in principal to a three-year deferred prosecution agreement. Julius Baer said it expects a final resolution of the matter “shortly.”
Switzerland’s third largest private bank said it had been cooperating with the DOJ since 2015 in the agency’s investigation of alleged money laundering and corruption involving officials and affiliates of FIFA and associated sports media and marketing companies.
The affair is a holdover from the era of former Chief Executive Boris Collardi, who is now at Geneva private bank and asset manager Pictet.
Julius Baer was heavily criticised earlier this year by Switzerland’s financial supervisor FINMA for ignoring money laundering risks of FIFA-linked payments.
An ex-banker was convicted in 2017 in U.S. District Court of conspiracy charges for arranging payments from a sports marketing executive to the Argentine soccer association’s president.
Since 2016, the bank said it has addressed the shortcomings identified in its operations, including by redocumenting each of its client relationships and ending its dealings with some customers.
Reporting by John RevillOur Standards: The Thomson Reuters Trust Principles.
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5a09dca5edd548b5e88796edee2e1380 | https://www.reuters.com/article/us-jungle-ventures-fundraising/singapores-jungle-ventures-raises-240-million-for-third-southeast-asia-fund-idINKBN1X82K6?edition-redirect=in | Singapore's Jungle Ventures raises $240 million for third Southeast Asia fund | Singapore's Jungle Ventures raises $240 million for third Southeast Asia fund
By Aradhana Aravindan, Chibuike Oguh2 Min Read
SINGAPORE/NEW YORK (Reuters) - Singapore’s Jungle Ventures said on Wednesday it has raised $240 million from investors, including Temasek Holdings, for a third fund designed to back Southeast Asian startups, highlighting the growing interest in the region’s technology firms.
Jungle Ventures’ latest fund comes as a growing number of venture capital firms, including Vertex Ventures and Golden Gate Ventures, have been raising funds focused on the region this year.
Investors are betting on the market potential of Southeast Asia’s population of 640 million, which is fast going online, and using smartphones to shop, commute and make payments.
The region’s Internet economy is forecast to balloon to $300 billion by 2025 from an estimated $100 billion this year, according to a report by Google, Temasek and consultants Bain & Co.
More than 90% of the capital was from institutional investors, with about 60% coming from outside Asia - mainly the United States and Europe, Jungle Ventures’ managing partner Amit Anand told Reuters.
The investors include German development finance institution DEG, the World Bank Group's IFC, Bangkok Bank's BBL.BK corporate venture capital fund Bualuang Ventures, Dutch development bank FMO and Cisco Investments.
The fund exceeded Jungle Ventures’ initial target range of $150 million to $200 million, Anand said. In its previous fund, the company raised $100 million from investors in 2016 and its debut fund had raised $10 million in 2012.
Jungle Ventures’ portfolio includes Singaporean hotel booking and management platform RedDoorz, cloud-based software provider Deskera, research platform Smartkarma and Thai fashion e-commerce start-up Pomelo Fashion.
The firm has created an internal rate of return of about 79% with its four exits that included vacations rental platform Travelmob, Anand said. It typically allocates $10 million-$20 million per company, making 10 to 15 key investments in each fund.
Reporting by Aradhana Aravindan in Singapore and Chibuike Oguh in New York, Editing by Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.
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fcdeb0330fd4cd65b68b0dc0714abc93 | https://www.reuters.com/article/us-junkbonds-energy/junk-rated-energy-firms-speed-to-debt-markets-after-2019-drought-idINKBN1ZD2KO?edition-redirect=in | Junk-rated energy firms speed to debt markets after 2019 drought | Junk-rated energy firms speed to debt markets after 2019 drought
By Kate Duguid5 Min Read
NEW YORK (Reuters) - The dawn of the new decade has brought a reprieve for debt-laden companies in the energy sector: Investors are throwing money their way again, for now.
Pumpjacks are seen during sunset at the Daqing oil field in Heilongjiang province, China August 22, 2019. REUTERS/Stringer
Having been largely shut out of capital markets in 2019, low-rated energy firms, some on the brink of default, are racing to secure financing. They are finding willing lenders.
Indeed, the first two weeks of the year have brought as many energy junk bond sales as in the last half of 2019, according to data from Dealogic, a data analytics firm.
In addition, total return in the oil and gas sector is broadly outperforming the wider high-yield debt market after getting walloped last year.
This new wave of deals may keep distressed companies alive for now, but it could ultimately prolong and worsen the pain.
The fundamental story in the sector has not changed - companies are highly leveraged, the oil market is amply supplied and prices are not seen rising all that much despite the recent bump from the heightened tensions between the United States and Iran.
“We’ll see how long this window lasts, but I think everybody is trying to take advantage,” said Sreedhar Kona, senior analyst at Moody’s Investors Service.
Of the $14.9 billion in high-yield deals to price in 2020 so far, $9.45 billion - roughly two-thirds - came from energy companies, according to Refinitiv’s Eikon.
The spark appears to have come from one of the weakest credits in the sector. In early December, Chesapeake Energy, battling to stave off bankruptcy, secured a $1.5 billion loan after repeated failed attempts.
Since then, the ICE/BofAML U.S. junk-rated energy index, which tracks the value of U.S. high-yield energy bonds, has risen nearly 7%, more than double the total return of the wider non-investment grade market. Energy credit spreads - a measure of the compensation demanded by investors for the added risk of holding those bonds rather than safer U.S. Treasuries - have narrowed by the most since 2016, when the sector was recovering from a collapse in oil prices.
Click here for an interactive graphic: ()
“In December we were starting to see one or two companies show that access to the market is possible, although it may need to come with strings like secured financing as opposed to unsecured or covenants that were more stringent than in the past,” said Sonali Pier, portfolio manager at PIMCO.
January’s rush to market was also aided by a brief rise in oil prices on the escalation of Middle East tensions after the Trump administration killed a top Iranian military official. Brent crude futures rose above $70 a barrel but have since given back all those gains and then some.
The newly revived markets will be a lifeline in particular for companies on the hook for some of the $55 billion of energy debt maturing in the next three years, according to JPMorgan. Most of January’s junk energy issuance has been for refinancing purposes, including a $750 million deal from midstream servicer Genesis Energy and a $550 million deal for natural gas producer Range Resources.
Demand has also been robust enough to support a $750 million offering from offshore driller Transocean rated by Moody’s at Caa1, the lowest category of junk.
The market may provide a chance for companies like oil transport firm Hornbeck Offshore to refinance some of the $674 million it has maturing in the coming two years, $224 million of which comes due on April 1. Hornbeck has been trying to complete a deal for the past two years, according to Kona.
“If companies with maturities inside three years can access the market, that really does change the liquidity profile, which is what’s in question today,” said PIMCO’S Pier.
The oil and gas industry depends on access to capital markets to finance its growth. With urgent needs to refinance and service existing debt, firms may not also be able to raise the cash needed to invest in new projects.
Even if they do, expectations for sustained higher oil prices in 2020, and therefore cash flow in the sector, are low. A Reuters poll in late December forecast U.S. crude prices averaging $60 a barrel or more only in 2023. They were at $58.20 on Tuesday.
The more stringent terms companies have had to accept to get deals done may come back to bite.
For example, Western Midstream, rated junk by Moody’s and one notch above junk by S&P, secured competitive pricing for its $3.5 billion offering only by adding a provision that gives investors an additional 25 basis points on their coupon for every ratings downgrade. It is a risky bet: while the company’s outlook may be developing, the sector’s is not.
Reporting by Kate Duguid; Editing by Dan Burns and Dan GreblerOur Standards: The Thomson Reuters Trust Principles.
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b3c56d90b1fce53cc3302a43c8a660b9 | https://www.reuters.com/article/us-jupiterfund-outlook-idUKKBN1WQ0IP?edition-redirect=uk | Jupiter sees 1.3 billion pounds in third-quarter net outflows as manager Darwall leaves | Jupiter sees 1.3 billion pounds in third-quarter net outflows as manager Darwall leaves
By Reuters Staff2 Min Read
LONDON (Reuters) - Jupiter Fund Management JUP.L saw net outflows of 1.3 billion pounds ($1.62 billion) in the third quarter, mainly from its European growth strategy, it said on Friday, as star fund manager Alexander Darwall prepares to leave the company.
Darwall, who runs Jupiter’s European team and joined the firm in 1995, will leave in mid-November, Jupiter said in a trading statement. He is planning to set up his own firm, Devon Equity.
The transfer of management responsibilities to Darwall’s successors in the Jupiter European Fund and Jupiter European Growth SICAV took place on Oct 1, it added.
Jupiter's shares have fallen 26% since the company said in July that Darwall was planning to launch a rival firm, compared with a 2% drop in the FTSE mid-cap index .FTMC.
Jupiter’s assets under management were 45.1 billion pounds at Sept. 30, a drop of 800 million pounds on the quarter, with positive market performance making up for some of the outflows.
The European Growth strategy, focused mainly on Britain and continental Europe, saw outflows of 1.1 billion pounds.
Reporting by Carolyn Cohn; editing by Simon Jessop and Rachel ArmstrongOur Standards: The Thomson Reuters Trust Principles.
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30f462f8d97967c4bce87d2ef9065770 | https://www.reuters.com/article/us-just-east-takeaway-shareissue/takeaway-issues-shares-after-watchdog-gives-just-eat-buy-final-approval-idINKCN2250SJ?edition-redirect=in | Takeaway issues shares after watchdog gives Just Eat buy final approval | Takeaway issues shares after watchdog gives Just Eat buy final approval
By Reuters Staff2 Min Read
AMSTERDAM (Reuters) - Europe’s largest online food ordering service Just Eat Takeaway.com NV moved quickly to shore up its finances with an overnight share and convertible bond issue, as Britain’s competition watchdog gave the company’s merger final approval.
Takeaway bought Just Eat in January after a long takeover fight.
Takeaway said on Thursday it had raised 400 million euros ($433 million), representing a 3.2% dilution of its stock base, from an accelerated overnight offering to institutional investors. Shares were issued at 87 euros per share, a 3.7% discount to its closing price on Wednesday.
The company also issued 300 million euros in convertible bonds.
The money will be used to pay down credit facilities used by both Just Eat and Takeaway and “for general corporate purposes as well as to provide the company with financial flexibility to act on strategic opportunities.
Separately Britain’s Competition and Markets Authority said it was unconditionally approving the companies’ merger.
Takeaway and Just East, operating separately until last week, have each said they saw an initial shock from the coronavirus outbreak, but orders are recovering.
“In this case, we carefully considered whether Takeaway.com could have re-entered the UK market in future, giving people more choice,” CMA mergers director Colin Raftery said in a statement.
“But after gathering additional evidence which indicates this deal will not reduce competition, it is also the right decision to now clear the merger.”
Reporting by Toby Sterling; Editing by Susan FentonOur Standards: The Thomson Reuters Trust Principles.
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933e86af23150319e5cd067b27c12b14 | https://www.reuters.com/article/us-just-eat-m-a-prosus/just-eat-takeover-battle-hots-up-with-fresh-6-5-billion-prosus-bid-idUKKBN1YD0JJ?edition-redirect=uk | Just Eat takeover battle hots up with fresh $6.5 billion Prosus bid | Just Eat takeover battle hots up with fresh $6.5 billion Prosus bid
By Toby Sterling, Paul Sandle3 Min Read
AMSTERDAM (Reuters) - Prosus PRX.AS raised its unsolicited cash offer for British food delivery service Just Eat JE.L to $6.5 billion on Monday, ratcheting up the pressure on rival bidder Takeaway TKWY.AS in their bitter takeover battle.
The Dutch-based technology group’s new cash offer of 740 pence per share, up from 710 pence, is about 5% higher than Takeaway’s all-share bid, which has the backing of Just Eat.
“Unlike the Takeaway.com offer, which relies on (its) shares remaining at an above-sector multiple, our cash offer provides certainty of value to Just Eat shareholders,” CEO Bob van Dijk said in a statement.
Prosus also lowered its acceptance threshold to 50% plus one share, down from 75%, and extended its offer period to Dec. 27. It said the new offer is about 25% above the level where Just Eat shares were trading before its first bid in October.
Just Eat said its board was reviewing the latest Prosus offer. “Shareholders are advised to take no action with regards to the increased offer at this time,” it said.
Just Eat shares were trading at 781 pence at 1122 GMT, signaling market expectations of a higher bid.
Takeaway’s CEO, Jitse Groen, described the new Prosus offer as “derisory”, noting that it was 9% lower than Just Eat’s share price as recently as Aug. 13.
FILE PHOTO: Signage for Just Eat on the window of a restaurant in London, Britain, August 5, 2019. REUTERS/Toby Melville
He urged Just Eat shareholders to accept his offer, which he said would “combine our two great companies to create the largest global platform in online food delivery outside China”.
‘DERISORY’
“A slightly higher derisory cash bid remains a derisory cash bid,” Groen said.
“This opportunistic offer significantly undervalues Just Eat and the value that the Just Eat-Takeaway.com combination will deliver to shareholders.”
Investor Cat Rock, which Refinitiv data shows owns 5.9% of Takeaway and 2.6% of Just Eat, said Prosus should pay at least 925 pence per share for Just Eat to compensate investors for the upside they might miss in a Takeaway tie-up, which it supports.
“This revised Prosus offer is wholly inadequate and shows Just Eat shareholders that Prosus cannot muster a credible bid,” the investor said.
Cat Rock has argued that Just Eat would thrive under Groen’s leadership and that shares of the new entity could reach as high as 12 pounds.
Both sides are due to report on how many shares their offers have won by Dec. 12. If neither has emerged as winner, Britain’s Takeover Panel will start an auction process from Dec. 27.
Citi analysts said they believe that an auction is the preferred outcome for Prosus, which has the cash to win, adding that Prosus is unlikely to reach the required acceptance level with its bid at 740p per share.
Prosus has given itself capacity to increase its offer during an auction process, Citi said in a note, highlighting that the latest approach was not declared as its “best and final” offer.
Citi estimated that 830p per share “would be a level at which we believe would fairly reward Just Eat shareholders”.
Reporting by Toby Sterling; Editing by Alexander Smith and David GoodmanOur Standards: The Thomson Reuters Trust Principles.
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d0fdfbc0ec39bd57e3c684a486b178b2 | https://www.reuters.com/article/us-just-eat-m-a-prosus/prosus-urges-just-eat-shareholders-to-accept-its-offer-reject-takeaway-bid-idINKBN1XU1AY?edition-redirect=in | Prosus urges Just Eat shareholders to accept its offer, reject Takeaway bid | Prosus urges Just Eat shareholders to accept its offer, reject Takeaway bid
By Reuters Staff1 Min Read
FILE PHOTO: The app for Just Eat is displayed on a smartphone in this posed picture in London, Britain, August 5, 2019. REUTERS/Toby Melville/File Photo
AMSTERDAM (Reuters) - Dutch technology company Prosus NV PRX.AS on Wednesday urged shareholders of Britain's Just Eat PLC JE.L to accept its unsolicited 4.9 billion pound ($6.3 billion) cash bid for the company by Dec. 10, and spurn an alternative offer as too risky.
“We believe that the Takeaway.com offer underestimates the substantial investment required in Just Eat to recapture market share and improve performance,” Prosus CEO Bob van Dijk said in a statement of the rival proposal.
Takeaway’s all-share offer, which is supported by Just Eat’s board, currently values Just Eat at around 4.7 billion pounds.
Prosus is controlled by South Africa's Naspers NPNJn.J Ltd.
Reporting by Toby Sterling; Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.
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ff424f3a8f213be0eef51f2067efb84a | https://www.reuters.com/article/us-just-eat-m-a-prosus/takeaway-pulls-ahead-in-just-eat-bidding-war-endgame-idINKBN1YN21V?edition-redirect=in | Takeaway pulls ahead in Just Eat bidding war endgame | Takeaway pulls ahead in Just Eat bidding war endgame
By Paul Sandle, Toby Sterling5 Min Read
LONDON/AMSTERDAM (Reuters) - Takeaway.com was poised to win the battle for British food delivery company Just Eat after it trumped a raised offer from rival Prosus NV, which put it within reach of a 50% threshold needed to clinch the deal.
FILE PHOTO: Signage for Just Eat on the window of a restaurant in London, Britain, August 5, 2019. REUTERS/Toby Melville/File Photo
The two companies vying to buy British online food delivery company made increased final bids on Thursday, with Prosus offering 800 pence, or 5.5 billion pounds ($7.16 billion) in cash, and Takeaway.com raising its all-share offer.
The Takeaway bid valued Just Eat shares at 916 pence each based on its closing price on Wednesday. The prospect of a higher offer sent Takeaway shares falling more than 9% to 80.25 euros in Amsterdam on Thursday afternoon, narrowing the gap between the two bids to just 30 pence.
But Takeaway looked set to close the deal after it said it had the backing of acceptances representing 46.07% of Just Eat shares. Just Eat’s largest shareholder STM Fidecs Trust Company said it was supporting the “materially improved” offer from Takeaway.
Takeaway and internet giant Prosus, which is also listed in Amsterdam, have been battling since October, with Takeaway’s earlier offer backed until now by Just Eat’s board.
Just Eat said in a statement it was reviewing both final offers, and advised shareholders to take no action at this time.
The bids were announced within a matter of minutes of each other in a late afternoon flurry.
Prosus CEO Bob van Dijk said his company’s final offer, which was increased from previous bids of 710 and 740 pence “delivers outstanding and certain value to Just Eat shareholders” and he urged them to accept it.
Shortly afterwards Takeaway CEO Jitse Groen responded with a new all-share bid that would leave Takeaway shareholders with a 42.5% stake in the combined company, down from 48%.
Just Eat shares were trading up 1.2% at 812 pence after first falling then surging on the successive announcements.
“This offer is a full offer, and on top of that we believe it provides Just Eat shareholders with tremendous upside,” Groen said in a statement.
“The all-share combination establishes the largest global platform in online food delivery outside China and allows shareholders of both Just Eat and Takeaway.com to benefit from significant long-term value creation.”
Groen personally owns a 25% stake in Takeaway. In conjunction with its new bid, the company said it would see full year revenue growth of 77%, driven by growth in Germany.
Takeaway said it would look at selling Just Eat’s 33% stake in Brazil’s iFood if its offer succeeds, returning half of the proceeds to shareholders. Prosus already owns the rest of iFood, Brazil’s biggest online food delivery platform.
Takeaway and Prosus have argued about the correct strategy for Just Eat, which is facing increased competition from the likes of Uber Eats and Deliveroo.
Takeaway has said platforms that focus on delivery will struggle to be profitable, and it aims instead to be the dominant ordering platform in each market.
Its offer has been backed by Just Eat’s board and some shareholders who believe a combination of the companies will create a powerhouse in Europe’s most profitable markets in the long term.
Investor Alex Captain of Cat Rock Capital Management LP, which holds 5.95% of Takeaway and 2.60% of Just Eat, said on Thursday he continued to back the Takeaway offer.
“We hope Just Eat shareholders join us in accepting this final Takeaway.com offer,” he said.
Prosus has argued that without being a dominant player in both delivery and ordering -- which will require significant investment -- competitors will overtake Just Eat.
Takeaway said it has received valid acceptances from the holders of 46.07% of Just Eat’s shares. Both bidders have a tender threshold of 50% of shares to be binding.
Prosus said that by 1300 on Thursday, before it made its final offer, it had received acceptances from holders of about 0.0065% of Just Eat’s shares.
Both suitors said their bids were final and would not be raised, eliminating the prospect of an auction that would have taken place between Christmas and New Year.
Both offers now have acceptance thresholds of 50% and shareholders have until Jan. 10 to choose.
Reporting by Paul Sandle and Toby Sterling, Editing by Kate Holton/Keith Weir/Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.
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76be57596dd20976d6f06c022a94e4da | https://www.reuters.com/article/us-just-eat-m-a-takeaway-com-idUSKCN1UV0IJ?via=indexdotco | Takeaway.com and Just Eat agree merger terms | Takeaway.com and Just Eat agree merger terms
By Paul Sandle, Bart H. Meijer2 Min Read
LONDON/AMSTERDAM (Reuters) - Amsterdam-based Takeaway.com TKWY.AS and British rival Just Eat JE.L have finalised the terms of their deal to create a global food delivery company that can rival Uber Eats UBER.N as the largest outside China.
The group, to be called Just Eat Takeaway.com, will be a market leader in Britain, Germany, the Netherlands and Canada.
The companies said on Monday they had backed the deal as outlined on July 29, with Just Eat shareholders receiving 0.09744 new Takeaway.com shares for each of their shares.
The terms value Just Eat at around 4.7 billion pounds ($5.7 billion), based on Takeaway’s price at Friday’s market close.
Takeaway.com’s shares have slipped around 8% since the deal was announced last week, trading at 76.70 euros on Monday morning.
“The board believes that this is a compelling offer for Just Eat shareholders which will create a global leader in a dynamic and rapidly growing sector,” the British firm’s chairman, Mike Evans, said.
“Together we will have the scale to address the huge opportunities in the delivery market, as ordering food moves to becoming an everyday convenience”, he told reporters.
Slideshow ( 3 images )
Scale is all-important in the fast-growing $100 billion market as global rivals such as Amazon-backed AMZN.O Deliveroo and Uber Eats scramble to offer consumers the biggest choice.
“There is unprecedented competition in this global market, with lots of new parties”, Takeaway CEO Jitse Groen, who will lead the merged company, said.
“Bringing these two together means we can pool the profits from both, to allocate capital efficiently to 23 countries.”
The companies said their merger was expected to lead to 20 million euros ($22.2 million) in cost savings after four years, with around half of that amount expected in the first year.
The deal is set to close by the end of 2019, after which Just Eat Takeaway.com shares will be listed in London, while Takeaway’s current listing in Amsterdam will disappear after a year.
Reporting by Paul Sandle and Bart Meijer; editing by Kate Holton and Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.
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02df64d9a1b97cd3d0a243899114f9a6 | https://www.reuters.com/article/us-just-eat-m-a-takeaway-com-idUSKCN1VO0LO?utm_campaign=trueAnthem%3A+Trending+Content&utm_content=5d6e15654b188d00011b7a5a&utm_medium=trueAnthem&utm_source=twitter&via=indexdotco | Just Eat shareholder Eminence Capital to vote against Takeaway.com merger | Just Eat shareholder Eminence Capital to vote against Takeaway.com merger
By James Davey3 Min Read
LONDON (Reuters) - A top-10 shareholder in Just Eat JE.L said on Tuesday it would vote against the British food delivery company's proposed 9 billion pound ($11 billion) merger with Takeaway.com TKWY.AS, saying the deal undervalued Just Eat.
FILE PHOTO: Signage for Just Eat is seen on the window of a restaurant in London, Britain, August 5, 2019. REUTERS/Toby Melville/File Photo
Eminence Capital, a U.S. asset management firm which owns 4.4% of Just Eat, said the merger had a sound strategic rationale but the financial terms of the deal were “grossly inadequate to Just Eat shareholders.”
Last month Amsterdam-based Takeaway.com and rival Just Eat finalised the terms of a deal, first outlined in July, to create a global food delivery company to rival Uber Eats UBER.N as the largest outside China.
The group, to be called Just Eat Takeaway.com, would be a market leader in Britain, Germany, the Netherlands and Canada.
Investment firm Cat Rock, however, said on Tuesday Just Eat shareholders should vote for the merger unless a more “compelling and credible” counter-offer emerges.
"Voting against the Just Eat and Takeaway.com merger benefits no one but Just Eat's competitors," Cat Rock said in a statement here. The activist investor owns 3% of Just Eat’s shares and a 4.3% stake in Takeaway.com, according to Refinitiv Eikon data.
Cat Rock had been pushing Just Eat to merge with a rival such as Takeaway and has also stepped up its campaign for changes at the company.
The merger deal would see Just Eat shareholders receive 0.09744 new Takeaway.com shares for each of their shares. When it was announced on Aug. 5 it valued Just Eat at around 4.7 billion pounds ($5.8 billion).
However, as of Monday’s closing prices, Just Eat’s market capitalization was 5.33 billion pounds.
“It is clear to us that (Takeaway.com’s) offer of a 15% premium to (Just Eat’s) closing price on July 26 is highly opportunistic,” said Ricky Sandler, chief executive and chief investment officer of Eminence.
“The proposed financial terms are far too favorable to (Takeaway.com) shareholders and far too unfavorable to (Just Eat) shareholders. Accordingly, we intend to vote against this arrangement,” he said.
The merger deal, which is being carried out through a so-called scheme of arrangement, requires the support of 75% of Just Eat shareholders to go through.
Just Eat had no immediate comment. Its shares were 3.3% lower at 750.2 pence at 1306 GMT.
Last month Aberdeen Standard Investments, Just Eat’s sixth-biggest investor with a 5.1% stake, according to Refinitiv data, also said the deal did not value the British company highly enough and it expected an improved offer to emerge.
Reporting by James Davey in London and additional reporting by Noor Zainab Hussain in Bengaluru; Editing by Susan Fenton and Mark PotterOur Standards: The Thomson Reuters Trust Principles.
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a2dea149248f7b90bee0a96369ac824d | https://www.reuters.com/article/us-just-eat-m-a-takeaway-com/takeaway-shareholders-approve-just-eat-acquisition-company-idINKBN1Z81SW?edition-redirect=in | Takeaway shareholders approve Just Eat acquisition: company | Takeaway shareholders approve Just Eat acquisition: company
By Reuters Staff1 Min Read
FILE PHOTO: The app for Just Eat is displayed on a smartphone in this posed picture in London, Britain, August 5, 2019. REUTERS/Toby Melville/File Photo
AMSTERDAM (Reuters) - Dutch food ordering company Takeaway.com said on Thursday its shareholders had approved plans for the company's proposed 5.9 billion pound ($7.7 billion) acquisition of British peer Just Eat PLCJE.L.
In a statement, Takeaway said its plan for an all-share merger had been approved at an extraordinary meeting of shareholders in Amsterdam.
Takeaway is vying with rival Prosus PRX.AS to buy Just Eat. Takeaway said on Dec. 19 that it has assurances from 46% of Just Eat shareholders that they will tender their shares to its all-share offer, currently worth 879 pence. Prosus bid 800 pence in cash per Just Eat share.
The tender period for both offers ends on Jan 10.
($1 = 0.7666 pounds)
Reporting by Toby Sterling; editing by David EvansOur Standards: The Thomson Reuters Trust Principles.
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b61660f9a5062f281c25bad7f411cfc9 | https://www.reuters.com/article/us-just-eat-m-a-takeaway-factbox/factbox-takeaway-and-just-eat-to-form-world-leading-food-deliverer-idUKKBN1Z91M6?edition-redirect=uk | Factbox: Takeaway and Just Eat to form world leading food deliverer | Factbox: Takeaway and Just Eat to form world leading food deliverer
By Reuters Staff3 Min Read
(Reuters) - The takeover by Dutch food delivery company Takeaway.com of its British peer Just Eat is set to create the world’s biggest online food delivery company outside China.
Here’s an overview of what the merged company, called Just Eat Takeaway.com NV, will look like:
GEOGRAPHY
Just Eat Takeaway.com will be active in 23 countries around the globe, covering Europe -- from Poland to Portugal and from Norway to Italy -- while also catering to Canada, Israel, Australia and New Zealand.
Just Eat or Takeaway is currently the market leader in terms of orders in 15 of these countries, including Canada, the United Kingdom, Germany and the Netherlands.
The merged company plans to exit the Latin American market, as it will look to sell Just Eat’s 33% stake in iFood, which runs the leading food delivery platforms in Brazil, Colombia and Mexico.
FINANCIALS
Partnering with over 155,000 restaurants, the companies together processed almost 355 million orders in 2018, with a total value of 7.3 billion euros ($8.1 billion).
According to Takeaway’s calculations this beats rivals Uber Eats (6.7 billion euros) and Delivery Hero (4.5 billion euros) and is second only to China’s Meituan (36.2 billion euros).
Total revenues of the two companies combined were 1.2 billion euros in 2018.
Just Eat generated an operating profit (EBITDA) of 214 million euros in the UK in 2018, while Takeaway made a core profit of 53 millions euros in the Netherlands.
The companies’ other operations ran at a loss, but Takeaway has said it expects the German market to become as profitable as the Dutch over time.
The companies expect their merger to ultimately lead to 20 million euros in annual cost savings.
MANAGEMENT
The new company will be led by Dutchman Jitse Groen, who founded Takeaway.com in 2000 and has remained its Chief Executive Officer throughout the years. Groen currently holds 25% of Takeaway’s shares.
Current Just Eat chairman Mike Evans will take on the role of chairman of the supervisory board.
Just Eat Takeaway.com will be headquartered in Amsterdam, and will be listed on the London Stock Exchange.
Reporting by Bart Meijer and Toby Sterling; Editing by Keith WeirOur Standards: The Thomson Reuters Trust Principles.
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63367405a14b9088b95c281546ba4c41 | https://www.reuters.com/article/us-just-eat-m-a-takeaway/shareholders-trade-barbs-as-just-eat-takeover-battle-simmers-idINKBN1X715E?edition-redirect=in | Shareholders trade barbs as Just Eat takeover battle simmers | Shareholders trade barbs as Just Eat takeover battle simmers
By Toby Sterling4 Min Read
AMSTERDAM (Reuters) - The takeover battle for British food delivery ordering service Just Eat JE.L heated up on Monday as a key shareholder accused German peer Delivery Hero DHER.DE of undermining one of the two rival offers.
FILE PHOTO: Signage for Just Eat is seen on the window of a restaurant in London, Britain, August 5, 2019. REUTERS/Toby Melville/File Photo
Takeaway.com and internet giant Prosus PRX.AS, both based in the Netherlands, are vying to buy Just Eat, with Prosus last week unveiling an unsolicited $6.3 billion offer in cash, or 710 pence per share. Just Eat, which had already agreed in August to an all-share offer from Takeaway, rejected the new bid.
However, a slide in the value of Takeaway’s shares since Aug. 30 has reduced the value of the Takeaway bid from an original 731 pence a share to 594 pence.
German food delivery company Delivery Hero finds itself tangled up in the battle because it is part owned by Prosus and is, in turn, an investor in Takeaway.
Just Eat shareholder Cat Rock on Monday accused Delivery Hero, which is 22% owned by Prosus, of selling down its 13% stake in Takeaway shares to keep them artificially suppressed and lower the attractiveness of Takeaway’s offer.
“Delivery Hero structured its share sales in a bizarre and uneconomic fashion that seems deliberately intended to depress Takeaway.com’s stock price in the run-up to the shareholder vote on a merger with Just Eat,” Cat Rock said. The vote is scheduled for Dec. 4.
Delivery Hero said it “categorically” rejected the claim.
“The decision to sell down Takeaway.com shares was taken by Delivery Hero’s management board independently in September 2019,” its statement said.
“Delivery Hero had no knowledge of Prosus’s contemplated offer to acquire Just Eat.”
Before Prosus’s bid was announced, Delivery Hero had detailed plans to sell 3 million of its 8 million shares in Takeaway.
OFFER PREMIUM
Prosus, spun off last month from South Africa's Naspers NPNJn.J, issued a statement saying it had no hand in Delivery Hero's decision to sell Takeaway shares and had not revealed its plan ahead of time to Delivery Hero.
Prosus “does not control Delivery Hero or its investment decisions”, it said.
It said it hopes to “engage with shareholders to discuss the merits of its offer”, noting that it was at a 20% premium to Just Eat’s share price of 589p the day before it announced its interest.
“In our view, this price reflected the market’s disappointment in the continued weak performance of the business,” Prosus added, pointing to Just Eat’s third-quarter earnings.
Just Eat shares closed little changed at 761p on Monday, having soared 24% when the Prosus offer emerged last week.
Separately on Monday, Takeaway demanded that Delivery Hero DHER.DE should not vote on Dec. 4 either for or against Takeaway's offer, saying Delivery Hero had a conflict of interest given its ownership.
A Delivery Hero spokesman on Monday said the company would not comment on how it plans to exercise its voting rights.
Cat Rock, which owns roughly 3% of Just Eat, as well as 5.6%, of Takeaway, said it did not oppose Prosus’s offer in principle but considers it too low.
“We stand ready to consider fair offers from Prosus and any other interested buyers, but these offers must compete on a level playing field,” Cat Rock said.
Reporting by Toby Sterling, Anthony Deutsch, Bart Meijer, and Emma Thomasson; Additional reporting by Tanishaa Nadkar in Bengaluru; Editing by Jan Harvey, Keith Weir and David GoodmanOur Standards: The Thomson Reuters Trust Principles.
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7c524db0edfd7d2c77f1254927fa0875 | https://www.reuters.com/article/us-just-eat-m-a/just-eat-food-fight-nears-end-as-it-backs-takeaways-final-offer-idINKBN1YO173?edition-redirect=in | Just Eat food fight nears end as it backs Takeaway's final offer | Just Eat food fight nears end as it backs Takeaway's final offer
By Paul Sandle3 Min Read
LONDON (Reuters) - Just Eat JE.L backed a final 5.5 billion pound ($7.2 billion) all-share offer from Takeaway.com on Friday, saying a tie-up to create one of the leading online food delivery companies was more compelling than a rival cash bid from Prosus.
FILE PHOTO: The app for Just Eat is displayed on a smartphone in this posed picture in London, Britain, August 5, 2019. REUTERS/Toby Melville/File Photo
Takeaway TKWY.AS and Prosus PRX.AS both raised their bids for the British company on Thursday, with Amsterdam-listed Takeaway's all-share offer trumping the 800 pence a share offered by Prosus at its current stock price.
“The board of Just Eat continues to believe that the combination with Takeaway.com is based on a compelling strategic rationale that allows shareholders to participate in the upside potential of the enlarged group,” Just Eat said.
Takeaway has received valid acceptances and commitments from the holders of 46% of Just Eat’s equity, putting it within touching distance of the 50% plus one share it needs to win.
And in a further sign that the momentum is with Takeaway, Prosus said it was not planning to buy shares in the market.
“We have always stated that we would remain disciplined with respect to price on acquiring Just Eat,” Prosus CEO Bob van Dijk said, noting a need to balance the future investment required to grow the business with acceptable returns for his shareholders.
Takeway sweetened its bid to give Just Eat shareholders about 57.5% of the combined group, implying a 916 pence value for each Just Eat share, based on Takeaway’s closing share price of 88.90 euros on Wednesday.
Takeaway’s shares have fallen since, but the 78 euro level they were trading at on Friday still puts its bid slightly ahead of Prosus, with an implied value of 803 pence a share.
Analysts at Barclays said Takeaway’s shares would need to fall below 77 euros for its implied offer to fall below Prosus.
While the stock could come under some pressure, they said, “reasonably positive” trading comments in its final bid document should be a decent support.
Just Eat’s shares followed Takeaway’s drift lower on Friday to trade down 2.8% at 789 pence at 1455 GMT.
By making final bids, the two rival Dutch companies avoided taking part in an auction shortly after Christmas.
Shareholders in Just Eat have until Jan. 10 to accept either offer, while Takeaway’s shareholders will vote on Jan. 9.
Just Eat said the holding company of founder and CEO Jitse Groen, which has a 25% stake, and the company’s managing directors had pledged to support the deal.
Editing by David Clarke, Elaine Hardcastle and Alexander SmithOur Standards: The Thomson Reuters Trust Principles.
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3c5c305979f2091aa5e1a9c11e85e75e | https://www.reuters.com/article/us-juul-canada/juul-labs-to-stop-selling-fruit-flavored-pods-in-canada-idUKKBN1ZD2TI?edition-redirect=uk | Juul Labs to stop selling fruit-flavored pods in Canada | Juul Labs to stop selling fruit-flavored pods in Canada
By Reuters Staff2 Min Read
FILE PHOTO: Signage for Juul vaping products is seen on a storefront in New York City, U.S., September 9, 2019. To match Special Report JUUL-ECIGARETTE/FDA-SIDEBAR REUTERS/Andrew Kelly
(Reuters) - Juul Labs Inc confirmed on Tuesday it will stop selling its fruit-flavored vaping pods in Canada, a move that could help the e-cigarette maker stave off mounting scrutiny over the surging popularity of its products with teenagers.
Juul has adopted a similar strategy in the United States where it has also withdrew fruit, dessert and mint nicotine flavors from retail stores and website.
A company spokesman confirmed an earlier report from The Logic portal, which said here Juul Labs Canada will temporarily stop producing fruit-flavoured vaping pods.
Existing supplies of the flavored pods will not be pulled from store shelves and could be reintroduced under the guidance of the Canadian health regulator, the report said.
The company will halt production of mango, vanilla, fruit and cucumber pods, as of Wednesday, but tobacco- and mint-flavored varieties will still be sold in Canada, CBC News reported here.
Canadian health regulators have been considering stricter regulations on the e-cigarette industry amid growing fears surrounding vaping’s safety and mounting evidence that youth vaping is on the rise both among people who once smoked and those who had not.
In December, Canada’s minister of health had proposed a ban on promotion and advertising of vaping products in public spaces, convenience stores and online.
Earlier this month, the Trump administration announced a ban on some popular e-cigarette flavors, including fruit and mint, allowing only menthol and tobacco flavors to remain on the market.
Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur and Sherry Jacob-PhillipsOur Standards: The Thomson Reuters Trust Principles.
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c44374219431366933137f45394c700d | https://www.reuters.com/article/us-juul-ecigarettes-fda-sidebar/fda-under-fire-for-years-of-delays-on-e-cigarette-regulation-idINKBN1YM1D2?edition-redirect=in | FDA under fire for years of delays on e-cigarette regulation | FDA under fire for years of delays on e-cigarette regulation
By Chris Kirkham5 Min Read
(Reuters) - As the FDA pressures e-cigarette firms to stamp out youth vaping, the agency faces criticism itself for failing to rein in the fast-growing industry after years of bureaucratic delays dating back to the Obama administration.
FILE PHOTO: The headquarters of the U.S. Food and Drug Administration (FDA) is seen in Silver Spring, Maryland November 4, 2009. REUTERS/Jason Reed/File Photo
Despite recent tough talk, the FDA has yet to pass any new industry-wide restrictions after two years of rapid growth in teenage vaping tied to the popularity of e-cigarettes made by Juul Labs Inc.
A measure to restrict sales of flavored e-cigarette products perceived to target teens was first proposed more than a year ago and touted in September by U.S. President Donald Trump. But the proposal has gotten bogged down in negotiations between the FDA and the White House amid pressure from the industry. Vaping advocates have argued a ban on flavors could alienate potential Trump voters next year, citing polls commissioned by the e-cigarette industry.
White House spokesman Judd Deere said in a statement the process “is not stalled” and that the administration “continues to move forward on development of responsible guidelines that protect the public health and the American people.”
The FDA has also delayed for years a deadline for e-cigarette makers to show their products provide a net benefit to public health. It’s now set for May after a federal judge earlier this year ordered the agency to move the deadline forward.
Former FDA Commissioner Scott Gottlieb told Reuters he believes the FDA should immediately ban sales of e-cigarettes such as Juul that continue to drive increases in youth vaping rather than wait for the applications.
Public health advocates criticize the FDA for failing to assert its regulatory authority over e-cigarettes.
“It’s endlessly frustrating,” said Desmond Jenson, a senior staff attorney at the Public Health Law Center, a Minnesota legal advocacy group focused on tobacco issues. “I can go back to FDA’s press page, where there are dozens of statements talking about Juul, and not one of those resulted in products coming off the market.”
The FDA declined a request for an interview with Mitch Zeller, who heads tobacco regulation, about its oversight of e-cigarettes. In written answers to questions, the agency said it would review e-cigarette firms’ regulatory applications by “weighing the deeply troubling uptake of these products by our nation’s youth against the possible benefits of decreased use of combustible tobacco products by adults.”
The FDA cited concerns including the dual use of e-cigarettes and cigarettes, and the question of whether e-cigarettes have become a “gateway” to traditional cigarettes for young people. The agency did not answer questions on whether it has the final say over such applications, or if the White House would get involved in its decisions on new e-cigarette regulations.
The White House declined to comment on whether it would get involved in the e-cigarette applications to the FDA.
The agency only got authority to regulate the tobacco industry in 2009, when President Barack Obama signed a sweeping tobacco control bill. The new law followed nearly two decades of failed attempts by the FDA and Congress to regulate the industry.
The FDA first started crafting rules for e-cigarettes in 2011, but industry lobbying delayed the rule allowing FDA regulation until the final months of the Obama administration, in May 2016.
When Commissioner Scott Gottlieb took the helm in 2017 as President Donald Trump’s first appointee to head the FDA, he pushed back a regulatory deadline for e-cigarette makers to prove their products provide a net benefit to public health, from 2018 to 2022.
A consortium of public health groups sued the FDA over the delay and won earlier this year. A federal judge ruled in July that e-cigarette makers had to file applications by next May, citing a “clear public health emergency.”
In a written statement, the FDA said it chose to push back the deadline in 2017 because it believed e-cigarette makers could not get applications finished in time. That could have resulted in the “immediate market exit” of products “that could be potentially less harmful” than cigarettes to adult smokers.
When data came out the following year showing a large increase in teenage e-cigarette use, the agency “revisited our policies in this area,” the agency said.
Gottlieb defended his tenure at the agency in an interview, saying he raised public awareness about teen e-cigarette use, cracked down on e-cigarette makers using kid-friendly flavors and packaging, conducted unannounced inspections at Juul’s San Francisco headquarters and proposed restrictions on flavored cigars.
“There was a lot of action there,” he said.
Reporting by Chris Kirkham; Editing by Vanessa O’Connell and Brian ThevenotOur Standards: The Thomson Reuters Trust Principles.
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013be2a157e1821ea6a44dd5146fd382 | https://www.reuters.com/article/us-juul-ecigarettes-fda-specialreport/special-report-fda-targets-e-cigs-that-hook-teens-but-dont-help-smokers-quit-idUKKBN1YM1BZ?edition-redirect=uk | Special Report: FDA targets e-cigs that hook teens but don't help smokers quit | Special Report: FDA targets e-cigs that hook teens but don't help smokers quit
By Chris Kirkham12 Min Read
(Reuters) - E-cigarette makers face an existential threat. By May, they must submit applications to the U.S. Food and Drug Administration proving that their products provide a net benefit to public health. If a company fails to make its case, the FDA has the power to order its products off the market.
The agency will judge that benefit with a two-part test: Are e-cigarettes effective in getting smokers to quit? And, if so, does that benefit outweigh the health damage to new e-cigarette users - including teenagers - who never smoked in the first place?
That’s a particularly high hurdle for the largest e-cigarette maker, Juul Labs Inc, according to a Reuters analysis of the latest available data on trends in cigarette and e-cigarette use from the U.S. Centers for Disease Control and Prevention.
The data show that e-cigarettes are having little impact in reducing U.S. cigarette smoking, while growth in vaping since 2015 has come entirely from users under 25 years old, including teenagers. Those trends present a special problem for Juul because of its dominance of the U.S. market and its enormous popularity among teenagers, according to more than a half dozen tobacco researchers and medical experts who assessed the data at Reuters’ request.
“I don’t see it as a surmountable hurdle,” Suzanne Colby, a tobacco researcher at Brown University, said of the FDA standard for public health benefits. “The data look like their product differentially attracts youth instead of adults, in such great numbers.”
Between 2017 and 2018 - the period when Juul rapidly grew to become the U.S. market leader - e-cigarette use among U.S. adults grew from 2.8% of the population to 3.2%, according to the CDC. But rates of cigarette smoking among adults barely budged, dropping from 14% to 13.7% - not enough to be statistically significant, according to the CDC. (For a graphic showing vaping trends for various age groups, see: )
Use of e-cigarettes by high-school students, by contrast, shot up by 78% over the same period – from 11.7% to 20.8% of students, data from the CDC and the FDA show. Juul is by far the most popular e-cigarette among teens, with more than half of high school and middle school students naming it as their favorite brand in surveys by the CDC and the FDA.
Moreover, the biggest growth in adult e-cigarette use came among the youngest age cohort of adults, people aged 18 to 24. E-cigarette use among young adults is nearly four times more common than among those aged 45 to 64, the CDC numbers show.
Another dynamic that undermines the public-health case for e-cigarettes is the large proportion of “dual users.” The most recent federal data show that 41% of adult e-cigarette users continue to also smoke cigarettes.
Some studies show dual use could be more harmful than smoking alone. A study last December found people who used both products tested higher than cigarette smokers for a range of volatile organic compounds and other toxins associated with tobacco-related disease. A separate study last year of heart disease risk among e-cigarette users found that dual use was “more dangerous than using either product alone.”
Related CoverageFDA under fire for years of delays on e-cigarette regulation
For the industry as a whole, the usage data cast serious doubts on whether e-cigarettes are providing a clear benefit among adult smokers, said Brian King, a deputy director at the CDC’s Office on Smoking and Health.
“When it comes to net public health impact, you have to consider both ends of the scale,” King said. “Right now it does appear the youth initiation is outweighing the adult use.”
Juul declined a request for an interview with executives including CEO K.C. Crosthwaite, a veteran of Marlboro maker Altria Group Inc who took the helm in September, on how it plans to pass the FDA’s regulatory test. As pressure on the company has mounted, Crosthwaite has made the FDA application process a central goal, laying off 650 employees, including many in marketing, last month in an effort to restructure the company to focus on regulatory approval.
In written responses to questions from Reuters, Juul said it believes its products “already are playing a critical role in transitioning adult smokers from combustible cigarettes and have the potential to convert tens of millions of smokers in the U.S.” The company cited studies it has commissioned showing that between 30% to 50% of adult smokers who use Juul “switch completely from smoking cigarettes within six months.”
Juul has said its customers are “the world’s 1 billion smokers,” but the company did not directly address questions about the disparity in youth and adult uptake in the United States. Juul acknowledged it must address any potential impact on nonsmokers who start using e-cigarettes. It said it is “committed to working cooperatively with regulators, public health officials and other stakeholders to combat underage use and convert adult smokers.”
In October, Crosthwaite brought on another Altria executive, Joe Murillo, who helped navigate a successful FDA application for IQOS, a Phillip Morris International Inc product that heats up but doesn’t burn packages of ground-up tobacco. Altria has an agreement with Philip Morris to market IQOS in the United States. The IQOS device is one of only two tobacco products that have successfully made it through the FDA process.
Juul’s competitors in the U.S. market face the same regulatory challenge. One rival, Japan Tobacco International, says it is confident in the FDA application it filed in August for its Logic products because it contains company data showing the brand - unlike Juul - is used overwhelmingly by older adults.
Anthony Hemsley, an executive for Japan Tobacco International’s U.S. division, acknowledged the population-wide trends in e-cigarette and cigarette use. But he pointed out that the FDA’s decision on net public health benefit will be made on a product-by-product basis - not across the entire industry. He added that Juul has “a significant challenge ahead of them, in overcoming the concerns that exist out there.”
The FDA declined requests for an interview with Mitch Zeller, who heads tobacco regulation at the agency, about its oversight of e-cigarettes. In written answers to questions, the agency did not directly address the population-level data on smoking and vaping trends but said it is “tasked with threading a public health needle” in crafting regulations on e-cigarette firms.
A Reuters investigation in November detailed how Juul’s developers used tobacco industry research and patents to formulate its smooth but potent “nicotine salts” blend of liquid nicotine, a key factor in its popularity among teenagers. The report showed company leaders were aware of the product’s popularity among teenagers soon after its 2015 launch, contradicting statements that Juul was caught off guard by teenage use last year.
Slideshow ( 3 images )
Former FDA Commissioner Scott Gottlieb told Reuters that he agreed with public health advocates and tobacco researchers that whatever benefits Juul may be having for cigarette smokers are offset by attracting children who otherwise wouldn’t have tried other tobacco products. Before Gottlieb left the department in April, he and his staff explored the option of halting sales of Juul and similar high-nicotine devices if their popularity continued rising among teens.
“We could take these products off the market tomorrow,” he said. “We don’t need the applications.”
(For a graphic tracking the rise of vaping amid regulatory delays, see: )
Juul and the FDA did not respond to questions on Gottlieb’s assertion that the agency should immediately remove Juul and similar products from the market.
Slideshow ( 3 images )
MOUNTING PRESSURE ON THE FDA
E-cigarettes have been available in the United States since at least 2007, but the FDA did not formally get authority over the industry until nine years later, in 2016.
The agency initially tried to regulate e-cigarettes as a drug, which would have carried more stringent requirements for e-cigarette firms, such as extensive clinical trials or animal testing. E-cigarette makers sued the FDA and won, leaving the agency to regulate the devices as tobacco products.
FDA officials started crafting a rule to regulate e-cigarettes in 2011, but the industry pushed back and successfully delayed the rule until May 2016, in the final months of the administration of President Barack Obama. During that time, Juul and dozens of competitors introduced products that were grandfathered into the market because they were already being sold before the regulation took effect.
The rule extended certain cigarette restrictions to e-cigarettes, like requiring health warning labels, setting a minimum sales age of 18 and prohibitions on free samples.
A key part of the new rule also required e-cigarette makers to submit applications to the agency by August 2018 - demonstrating why their products provide a net benefit to public health - along with studies and data on potential toxins in the products.
When Gottlieb was appointed by President Donald Trump to lead the agency in 2017, one of his first moves was to delay that deadline by four years, a decision public health advocates criticized. Just months later, school administrators, parents and politicians raised alarms about the rapid rise of vaping among high schoolers, who were particularly transfixed with the Juul device.
Some public health advocates feared the new administration’s commitment to the Obama-era regulations after an initial three-month delay, as the FDA faced litigation from the industry. Gottlieb declined to comment on whether the some in the administration wanted to kill the regulations but said his effort to push them forward was “not an easy process.” He said he delayed the deadline because the previous administration had not drafted guidelines that companies could follow for the application process, leaving the agency open to a legal challenge from the regulated industries.
“They would have sued me, and I would have lost,” he said.
But today’s FDA could – and should – pull Juul and other products from the market, Gottlieb said.
“I thought that’s where the agency would land,” he said.
In March, just before he left the agency, Gottlieb said publicly that the FDA was considering prohibiting sales of cartridge-based e-cigarettes like Juul from the market if teen usage rates went up for a second year in a row. Federal youth tobacco survey data first released in September showed that teenage usage did in fact keep rising, with the percentage of teenagers reporting they used e-cigarettes in the last 30 days growing from nearly 21% to more than 27%.
In a statement, the FDA said it has sent more than 1,100 warning letters to retailers selling to minors; issued warning letters to companies marketing teen-friendly e-cigarette products, such as those with sweet flavors; and launched advertising campaigns aimed at e-cigarette prevention in schools.
“Taken together, all of these efforts have had a wide-ranging impact on the manufacturing, marketing and selling” of e-cigarettes, the agency said. “FDA’s work is constant in its effort to keep these products out of the hands of kids.”
Reporting by Chris Kirkham; Editing by Vanessa O’Connell and Brian ThevenotOur Standards: The Thomson Reuters Trust Principles.
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4dae632c95e4b81665ba9f364caca420 | https://www.reuters.com/article/us-juul-ecigarettes-study/addictive-nicotine-in-juul-nearly-identical-to-a-marlboro-study-idUSKBN1YL26R | Addictive nicotine in Juul nearly identical to a Marlboro: study | Addictive nicotine in Juul nearly identical to a Marlboro: study
By Chris Kirkham6 Min Read
(Reuters) - The nicotine formula used by controversial e-cigarette maker Juul Labs Inc is nearly identical to the flavor and addictive profile of Altria Group Inc’s highly successful Marlboro cigarette brand, new research suggests.
FILE PHOTO: Juul brand vape cartridges are pictured for sale at a shop in Atlanta, Georgia, U.S., September 26, 2019. REUTERS/Elijah Nouvelage
A study released on Tuesday from researchers at Portland State University in Oregon helps to explain why a growing number of young people who never smoked cigarettes have become regular users of Juul vaping devices.
Special ReportFDA targets e-cigarettes that hook teens but don't help smokers quit
The formulation of Juul’s nicotine aerosol was designed to make it far easier for users to inhale larger quantities of nicotine without gagging, gasping or coughing - or even noticing.
“It becomes obvious why novice users, people who’ve never smoked before, find it easy to try Juul,” said David Peyton, a professor of chemistry at Portland State University who worked on the study, published in the journal Tobacco Control. “And once you try it, you’re getting dosed with a high concentration of nicotine.”
Directly comparing Juul vaping devices to Marlboro cigarettes, the researchers analyzed the amount and chemical makeup of the nicotine in Juul’s cartridge-like disposable “pods.”
In addition to sweet flavors and its sleek, flash drive-like design, Juul is notable for popularizing what are known as “nicotine salts,” a smoother form of nicotine than what was contained in earlier e-cigarettes, according to Juul’s own patents and outside research on their formula.
By adding organic acids to liquid nicotine, San Francisco-based Juul was able to reduce the amount of “freebase nicotine” in the aerosol that users inhale.
Freebase nicotine, common in e-cigarette liquid prior to Juul’s arrival in 2015, is harsh and difficult to inhale at high concentrations. Juul virtually eliminated the harsh side effects.
Slideshow ( 2 images )
‘ALL THE THINGS ABOUT MARLBORO THAT ARE ADDICTIVE’
While e-cigarettes have been marketed as a means to help smokers quit or cut down, public health officials have expressed concern that they are drawing a new, younger generation into nicotine addiction. Juul has come under intense scrutiny from regulators, lawmakers and attorneys general over the surging popularity of its products among teenagers in recent years.
A recent study found that nearly 60% of high schoolers and 54% of middle schoolers who use nicotine vaping products said Juul was their usual brand.
Peyton and fellow researchers James Pankow and Anna Duell measured the amounts of nicotine in Juul and how much of that nicotine was in the harsher freebase form of the chemical.
They determined that Juul’s potency and flavor profile was almost exactly the same as Marlboro cigarettes, describing Juul as an “e-cigarette analog” of the U.S. market-leading brand.
“Juul is all the things about Marlboro that are addictive,” said Pankow, an expert in the chemistry of nicotine and tobacco smoke. “Then they take away the bad smell and add some flavors. It’s a much more pleasant experience.”
Under pressure from regulators and lawmakers, Juul in recent months stopped selling flavors other than menthol and tobacco in the United States, but continues to sell fruit and dessert flavors in other countries.
A study released last month by researchers at Pennsylvania State University found that Juul delivered more nicotine to the bloodstream, and at a faster rate, than earlier e-cigarettes, and that its nicotine boost was similar to that of a cigarette.
Juul Labs did not immediately respond to a request for comment on the new study’s findings.
In an earlier statement, the company said its products were designed to get adult smokers to switch from cigarettes. Therefore the company “sought to create a nicotine-based e-liquid that mimicked the nicotine experience” in cigarettes, according to the statement.
“Providing a similar nicotine experience was a priority given the fact that early generation e-cigarettes had failed in this respect and, as a result, did not convert a significant number of adult smokers from cigarettes,” the company said.
Juul cited studies it commissioned showing that between 30% to 50% of adult smokers who use Juul “switch completely from smoking cigarettes within six months.”
A separate U.S. study released on Monday found that e-cigarette use significantly increases the risk of developing chronic lung conditions such as asthma or emphysema.
The Portland State researchers noted that Juul had rapidly duplicated - and improved - a formula that tobacco growers and purveyors took centuries to perfect: A way to deliver potent amounts of nicotine through inhalation.
The tobacco industry for centuries tinkered with the chemistry of nicotine in tobacco through various drying techniques and additives, aiming to make burned tobacco smoother to inhale, the researchers noted.
They said Juul’s evolution from earlier e-cigarettes was reminiscent of the tobacco industry’s cigarette development.
Juul has “essentially duplicated the world’s most popular cigarettes, which means this should be attractive to cigarette users,” Peyton said. “This is probably also a good way to get the curious novice who has never smoked.
“It’s difficult to go for the one population without hitting the second.”
Reporting by Chris Kirkham in Los Angeles; Editing by Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.
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3e7949251bd918180683151f3b7e47ee | https://www.reuters.com/article/us-juul-fda-ecigarettes/juul-warned-by-fda-over-marketing-practices-idINKCN1VU1OC?edition-redirect=in | Juul warned by FDA over marketing practices | Juul warned by FDA over marketing practices
By Reuters Staff3 Min Read
FILE PHOTO: A sign advertising Juul brand vaping products is seen outside a shop in Manhattan in New York City, New York, U.S., February 6, 2019. REUTERS/Mike Segar
(Reuters) - The U.S. Food and Drug Administration warned Juul Labs Inc on Monday for marketing its e-cigarettes as safer than traditional cigarettes, the latest move by the agency to curb the use of vaping devices that have become extremely popular among teens.
Juul has already come under scrutiny for its marketing initiatives, including its use of social media influencers to promote its vaping devices, with the Federal Trade Commission launching an investigation last month.
"The law is clear that, before marketing tobacco products for reduced risk, companies must demonstrate with scientific evidence that their specific product does in fact pose less risk or is less harmful," acting FDA Commissioner Ned Sharpless said in a statement. (bit.ly/2krQlGX)
The FDA’s warning letter also raises issues with certain statements made by those attending a July U.S. congressional hearing where a panel grilled Juul over a “holistic health education” camp it funded, as part of efforts to market its products directly to school-aged children.
According to a testimony at the hearing, a company representative speaking at a presentation in a school claimed that students “…should mention JUUL to his [nicotine-addicted] friend…because that’s a safer alternative than smoking cigarettes, and it would be better for the kid to use.”
The company uses a nicotine concentration of 5% in its products, which could potentially increase their addictiveness, and nicotine salts that are used to mask the harshness of nicotine, the agency said questioning their usage.
“We are reviewing the letters and will fully cooperate,” a Juul spokesman said.
The FDA has also asked Juul to provide a written response within 15 days outlining its plan to correct its violations and to provide requested documents and information within 30 days of the date of the letter.
Last year, the agency had requested documents from Juul to examine the high rates of youth use and had conducted a surprise inspection at Juul’s San Francisco headquarter and seized documents.
Reporting by Manojna Maddipatla and Saumya Sibi Joseph in Bengaluru; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles.
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2f27d4a0682963d72fa54212d4fedccd | https://www.reuters.com/article/us-juul-history-timeline/timeline-significant-events-in-the-history-of-juul-idUKKBN1WA2LI?edition-redirect=uk | Timeline: Significant events in the history of Juul | Timeline: Significant events in the history of Juul
By Reuters Staff3 Min Read
(Reuters) - The following are some significant events in the history of Juul.
FILE PHOTO: A store selling Juul vaping products is seen in Los Angeles, California, September 17, 2019. REUTERS/Lucy Nicholson
2007— Stanford design graduates James Monsees and Adam Bowen found Ploom Inc, drawing from their thesis project on a new kind of cigarette.
2012- Ploom introduces Pax, a vaporizer that becomes popular as a discreet way to consume cannabis.
2015— Ploom becomes Pax Labs, after selling the rights of Ploom products to Japan Tobacco International, which had been an investor in the company.
2015— Pax Labs introduces the Juul e-cigarette.
2017— Pax Labs spins out into a separate company, leaving Juul Labs to focus on nicotine e-cigarettes.
December 2017 – Kevin Burns joins Juul Labs as chief executive.
April 2018 – U.S. Food and Drug Administration announced it has conducted an investigation of underage sales of Juul products, and sends letter to Juul requesting documents around the marketing of its products.
September 2018 – Then-FDA Commissioner Scott Gottlieb calls teenage vaping an “epidemic,” tells Juul and other e-cigarette makers they have 60 days to submit plans detailing ways to combat youth use.
November 2018 – Juul announces plans to pull all flavors from retail stores except tobacco, mint and menthol; the FDA follows with an announcement that it will craft similar regulations around those flavors.
December 2018 –Juul-Altria MO.N deal inked, as the tobacco giant invests $12.8 billion in Juul, taking a 35 percent stake in the vaping device maker that valued it at $38 billion.
August 2019 – The US Centers for Disease Control and Prevention announces it is working with health departments in Wisconsin, Illinois, California, Indiana, and Minnesota to investigate more than 90 potential cases of severe lung illnesses associated with vaping.
September 6, 2019 - U.S. health officials caution Americans to avoid buying vaping products on the street, and to refrain from using THC oil or adding any substances to vaping products purchased in stores. Juul says its products “do not include THC, any compound derived from cannabis, or vitamin E compounds like those found in THC products,” and that it is confident the FDA and CDC “will get to the bottom of this issue.”
September 9, 2019 - American Medical Association urges the public to avoid the use of e-cigarette products until health officials further investigate and understand the cause of the illnesses.
September 9, 2019 - FDA sends warning letter to Juul Labs CEO over its unproven claims that its products pose less harm than traditional cigarettes. Agency chastises Juul’s insistence that it has had little, if any, role in youth e-cigarette use that skyrocketed by 78 percent among high school students and 48 percent among middle school students nationwide in 2018.
Sept 11, 2019- Trump administration says it will ban the sale of most flavored e-cigarettes.
Sept. 25, 2019- Juul names KC Crosthwaite as its new CEO. Burns resigns. Juul also suspends all advertising in the U.S. and says it will refrain from lobbying the Trump administration.
Reporting by Chris Kirkham and Bill Berkrot; Editing by Steve OrlofskyOur Standards: The Thomson Reuters Trust Principles.
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5e6a3fef46f634d0156ce386fa63b8f6 | https://www.reuters.com/article/us-juul-investors-idUKKBN1WA2P8?edition-redirect=uk | Fidelity fund's big bet on Juul looms large amid controversy | Fidelity fund's big bet on Juul looms large amid controversy
By Ross Kerber, Tim McLaughlin3 Min Read
BOSTON (Reuters) - Juul Labs Inc has become one the biggest bets in the portfolio of Fidelity’s $28 billion Blue Chip Growth Fund, whose exposure to the troubled e-cigarette maker has climbed to $761 million amid a regulatory backlash and departure of its top executive.
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Fidelity Blue Chip Growth Fund's FBGKX.O manager Sonu Kalra had 2.7% of the giant fund's assets invested in Juul as of July 31, the latest fund disclosures show, up from 1.7% of assets a year earlier.
Although Juul remains privately held, some Fidelity funds have made a practice of taking stakes in pre-IPO companies that have paid off big when they go public.
But the tactic can also put Fidelity fund holders into volatile situations like the one at rideshare leader Uber Technologies Inc UBER.N, which is trading well below its IPO price in May.
Juul is the latest example of pre-IPO drama. On Wednesday the company's CEO stepped down as merger talks between its biggest investor Altria Group Inc MO.N and Philip Morris International Inc PM.N collapsed in the face of a regulatory backlash against vaping.
Products made by Juul and others vaporize liquid containing nicotine. While they can help people quit smoking, the company faces a U.S. ban on some products and concerns about illnesses linked to vaping.
Flavored e-cigarettes represent 80% of Juul’s sales. The U.S. Food and Drug Administration’s plan to pull all e-cig flavors from the market, along with bans in some markets already, have pushed Juul’s valuation down to about $25 billion, from $38 billion when Altria invested in it, according to Morgan Stanley.
Related CoverageTimeline: Significant events in the history of JuulFactbox: U.S. lawsuits take aim at vaping
A spokesman for Boston-based Fidelity declined to comment. Fidelity’s Kalra acknowledged scrutiny of Juul from regulators but wrote that “Juul’s success in penetrating the U.S. market and continuing to grow its sales and earnings supported a higher valuation for this position,” according to a note to investors dated July 31.
Juul was in the Fidelity's fund top 10 holdings at the end of July, sandwiched between Visa Inc V.N and Salesforce.com Inc CRM.N.
John Bonnanzio, an editor of independent newsletter Fidelity Monitor & Insight, said the Juul stake has become risky but managers may be tempted by the chance to deliver outsize returns to help beat their benchmark and rival index funds.
Some managers have decided, “You can’t beat the index without investing outside of it,” Bonnanzio said.
Blue Chip Growth’s three-year average annual return of 17.1% is better than 79% of peer large cap growth funds, according to Morningstar Inc.
Reporting by Ross Kerber and Tim McLaughlin in Boston; Editing by Tom BrownOur Standards: The Thomson Reuters Trust Principles.
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184bb4d4f35d22353f30a7b9c61f6817 | https://www.reuters.com/article/us-juul-m-a-altria/u-s-sues-to-force-altria-to-unwind-investment-in-juul-idUSKBN21J718 | U.S. sues to force Altria to unwind investment in Juul | U.S. sues to force Altria to unwind investment in Juul
By Diane Bartz, Chris Kirkham4 Min Read
WASHINGTON (Reuters) - The U.S. Federal Trade Commission said on Wednesday it had filed a complaint aimed at forcing Marlboro maker Altria Group to sell its investment in e-cigarette maker Juul Labs Inc.
FILE PHOTO: Federal Trade Commission seal is seen at a news conference to announce that Facebook Inc has agreed to a settlement of allegations it mishandled user privacy at FTC Headquarters in Washington, U.S., July 24, 2019. REUTERS/Yuri Gripas
The FTC has probed Altria’s decision to buy a 35% stake in Juul, announced in December 2018, for $12.8 billion. The value of the investment has dwindled to $4.2 billion, following a series of writedowns last year, as Juul faced litigation and heightened regulatory scrutiny over its contribution to a surge in teenage vaping.
Altria and Juul were once competitors in the e-cigarette market. The FTC alleges that once Juul skyrocketed to become the market-leading e-cigarette maker in 2018, Altria dealt with the competition by “agreeing not to compete in return for a substantial ownership interest in Juul.”
“Altria and Juul turned from competitors to collaborators by eliminating competition and sharing in Juul’s profits,” said Ian Conner, director of the FTC’s Bureau of Competition.
Juul did not respond to a request for comment. Altria said it planned to “vigorously defend our investment.”
“We believe that our investment in Juul does not harm competition and that the FTC misunderstood the facts,” said Murray Garnick, Altria’s executive vice president and general counsel.
Altria’s MarkTen was at one point the second most popular e-cigarette maker, the FTC said. The FTC said Altria responded to Juul’s threat to its business by agreeing not to compete in exchange for Altria’s investment in the company.
Altria announced it would discontinue its MarkTen brand a few weeks before formally announcing the Juul investment in December 2018.
The FTC announcement is the beginning of what is likely to be a lengthy process and adds to a relentless series of regulatory headaches for Juul over the past year. The company stopped selling popular flavors such as mango and mint in the United States amid pressure from regulators and lawmakers, and shed hundreds of workers as it retooled under new management.
The company is facing a critical regulatory deadline later this year to prove that its products provide a net benefit to public health, meaning they aid smokers in quitting more than they lure teenagers or non-users into nicotine addiction.
Altria is Juul’s largest investor, and a forced divestiture would raise substantial questions for the e-cigarette maker’s future.
Although the Juul investment has become a disappointing one for Altria, the cigarette maker would be left searching for alternative products. Altria initially believed Juul could play a major role in offsetting declining cigarette sales. In January, the company projected U.S. cigarette sales would decline 4% to 6% this year.
Altria said in late March that Chief Executive Officer Howard Willard has contracted the coronavirus and is taking temporary medical leave. Chief Financial Officer William Gifford Jr is taking over in his absence, the company disclosed on Friday.
In October, Altria had acknowledged that U.S. antitrust enforcers were also looking into allegations that it had potentially exerted influence over Juul before winning approval for the big share buy.
Prior to antitrust approval, it is illegal for companies involved in mergers or similar transactions to coordinate in many areas.
Reporting by Diane Bartz; Editing by Cynthia Osterman and Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.
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051a7a08f496aae65c9089fcb8b5b6c7 | https://www.reuters.com/article/us-k-s-divestment/ks-shortlists-billionaire-private-equity-for-morton-salt-sale-sources-idUKKCN2501XN?edition-redirect=uk | K+S shortlists billionaire, private equity for Morton Salt sale: sources | K+S shortlists billionaire, private equity for Morton Salt sale: sources
By Joshua Franklin, Arno Schuetze2 Min Read
BOSTON/FRANKFURT (Reuters) - German minerals miner K+S SDFGn.DE has shortlisted hedge fund billionaire James Simons' family office as well as private equity firms for a sale of its $2 billion Morton Salt business, people familiar with the matter said.
K+S’s salt business, the world’s largest salt supplier and owner of the Morton Salt brand, was put up for sale as part of efforts by the German company to reduce debt that had soared after an investment in a new potash mine in Canada.
Meritage Group LP, an investment firm for the family of famed hedge fund investor James Simons of Renaissance Technologies, has partnered with U.S. salt producer Kissner for its bid, the people said. Kissner is owned by buyout group Stone Canyon Industries, which bought Kissner for $2 billion in April.
Private equity investors Advent International, American Securities and Cerberus Capital Management also made it to the second round of the bidding, they added.
K+S reiterated on Tuesday that it is aiming to sign a deal before year end. Advent and American Securities declined to comment, while the other the bidders had no immediate comment. The sources requested anonymity to discuss the deal.
The group’s net debt, which stood at 3.1 billion euros or 4.9 times core earnings (EBITDA) at the end of 2019, stems mainly from the 3 billion euros spent on the Bethune potash mine in Canada.
In March, Chief Executive Officer Burkhard Lohr said K+S would sell the salt business to reduce debt, which would allow debt to come down by more than 2 billion euros when combined with restructuring measures.
After the sale, K+S plans to focus on its core fertiliser business and speciality products with the Bethune potash mine in Canada as one of its core assets.
Additional reporting by Patricia Weiss; Editing by Tom Sims and Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.
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073d67ea2ebadf854870a7b3e77c99ca | https://www.reuters.com/article/us-kadabra-music-idUSKCN0V527V | Kadabra promises musical magic | Kadabra promises musical magic
By Jane Ross4 Min Read
The spotlight was on creative music technology and trends at the National Association of Music Merchants’ (NAMM) annual trade show in Anaheim, California.
Showcasing its newest product was Israel-based Tribal Tools. The Kadabra is a futuristic-looking MIDI controller that allows a musician to play up to 16 instruments simultaneously and manipulate sounds generated by an external sound source, via wireless or USB.
It is 47 inches long and ergonomically curved to fit the player’s body, so that it can be held like an electric guitar or a saxophone. All the instrument’s functions can be manipulated by motion, allowing the player to change sounds by turning with the Kadabra, moving sharply or laying it down flat.
Tribal Tools’ musical advisor Moshe Yoffe said the company’s founder Tal Ben Ari wanted to create a more organic experience for musicians.
“The idea with our founder and CEO was to really change the game a little bit. Instead of controlling sound with turning a knob or a fader, really to move with it and give the audience something they can see and feel,” he said.
Also hoping to make musicians’ relationship with their instruments more intuitive is start-up Expressive E, who showed off their Touche keyboard controller.
The keyboard player puts his or her hand on the wooden surface of the controller and can manipulate it, tap it, move it back and forward or side-to-side, with each movement changing the sound in a unique way. The idea is to be able to play the synthesizer more expressively.
“When you play with, like, an acoustic guitar, you have this tactile thing. With Touche, you bring that back to synthesizers. It has four points of control, right? And it’s all done with pressure. It is a very complex mechanism. So it’s not just a new kind of technologic device. It really is all about acoustic experience,” said marketing manager Arthur Boufley.
Touche operates with any digital or analog synthesizer, and controls pitch, tone, vibrato and other variables.
One of the biggest trends of the NAMM show, in fact, was a return to the analog synthesizer.
Moog is not a new company. It has been producing analog synthesizers since 1953, with artists from the Monkees to The Who and Elton John using them on their recordings. The company continues to create products for a new generation of musicians, performers and DJs.
At NAMM, Moog showed off its Mother-32 tabletop synthesizer, an instrument that produces and manipulates sounds using analog circuits and controls, with no computer electronics. Enthusiasts say analog synthesizers are more tactile and allow more flexibility and creativity than their digital counterparts, which focus on pressing a button and getting the same sound every time.
The Moog synthesizer molds sounds using cables and knobs rather than microprocessors and computer chips.
The enthusiasm for analog technology and recording has taken Ulrich Sourisseau by surprise. Fifteen years after he designed the Vinyl Recorder, to cut vinyl records in real time, from any kind of audio source, he has had his busiest year yet.
The Vinyl Recorder is a custom made and hand built machine, allowing small record labels to cut a limited run of vinyl to test the waters for a new release, before ordering a larger run from a record pressing plant. It retails for $4000.
According to NAMM, this year’s gathering was the largest in the show’s 115-year history, with a record 1,726 companies represented.
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6c236fe17308a588ed8eb061f10bbc1c | https://www.reuters.com/article/us-kakao-blockchain/s-korean-chat-app-firm-kakao-plans-blockchain-unit-idUSKBN1GH1BG?feedType=RSS&feedName=technologyNews | South Korean chat app firm Kakao plans blockchain unit | South Korean chat app firm Kakao plans blockchain unit
By Reuters Staff1 Min Read
SEOUL (Reuters) - Kakao Corp, South Korea’s largest messaging app operator, said on Monday it is planning to establish a unit focusing on blockchain technology.
Plans for the unit, set to be established this month, include a potential so-called reverse initial coin offering where an established firm raises capital through offering cryptocurrency, The Bell, a domestic online news site reported on Monday.
Kakao declined to comment on the report.
Kakao said Han Jaesun, co-founder of local startup accelerator FuturePlay Inc, is expected to lead the new unit.
Shares in Kakao fell 3.5 percent on Monday, a slide that analysts said was part of overall weakness in South Korean shares amid worries about a U.S. trade war. The main Kospi index closed down 1.1 percent.
Reporting by Joyce Lee; Editing by Edwina GibbsOur Standards: The Thomson Reuters Trust Principles.
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7a0601ae4c8a244cf72e39d265646f17 | https://www.reuters.com/article/us-kalobios-bankruptcy-idUSKBN0UD0ND20151230 | KaloBios Pharmaceuticals files for bankruptcy in wake of Shkreli arrest | KaloBios Pharmaceuticals files for bankruptcy in wake of Shkreli arrest
By Tom Hals, Rishika S2 Min Read
(Reuters) - KaloBios Pharmaceuticals Inc, a biotechnology company that fired Chief Executive Martin Shkreli earlier this month after his arrest on charges of securities fraud, filed for Chapter 11 bankruptcy on Tuesday.
Martin Shkreli (C), chief executive officer of Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc, departs U.S. Federal Court after an arraignment following his being charged in a federal indictment filed in Brooklyn relating to his management of hedge fund MSMB Capital Management and biopharmaceutical company Retrophin Inc. in New York December 17, 2015. REUTERS/Lucas Jackson
The filing comes weeks after KaloBios received financing from Shkreli to avert closing down, only to have those plans upended by his arrest.
Shkreli was arrested on Dec 17 for engaging in what U.S. prosecutors said was a Ponzi-like scheme at his former hedge fund and a pharmaceutical company he previously headed.
Shkreli gained notoriety when, as the chief executive of Turing Pharmaceuticals, he raised the price of a drug used to treat a dangerous parasitic infection to $750 a tablet from $13.50. He resigned as Turing CEO on Dec 18.
KaloBios plans to use bankruptcy to “evaluate its strategic alternatives” and to develop a restructuring plan, according to documents filed with the U.S. bankruptcy court in Wilmington, Delaware.
A chief restructuring officer, Eugene Davis, was appointed on Dec. 23, according to court documents.
KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought about 70 percent of its shares for an average price of $1.51, and agreed to provide additional financing.
The stock rocketed as high as $45.82 per share after Shkreli’s investment was disclosed.
Shkreli had said that KaloBios’ lenzilumab was a promising candidate for treating rare diseases.
The stock has been suspended from trading by Nasdaq since Thursday, when it last traded at $23.59 per share.
The company listed assets of $8.4 million and liabilities of $1.9 million.
KaloBios said on Monday said two of its directors, Tom Fernandez and Marek Biestek, had resigned.
KaloBios did not immediately respond to requests for comment.
Our Standards: The Thomson Reuters Trust Principles.
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9681558b5e114e485450b55b28fe3a6b | https://www.reuters.com/article/us-kalobios-nasdaq-idUSKBN0UC1I920151229 | KaloBios submits request to appeal Nasdaq delisting | KaloBios submits request to appeal Nasdaq delisting
By Reuters Staff2 Min Read
Martin Shkreli (C), chief executive officer of Turing Pharmaceuticals and KaloBios Pharmaceuticals Inc, departs U.S. Federal Court after an arraignment following his being charged in a federal indictment filed in Brooklyn relating to his management of hedge fund MSMB Capital Management and biopharmaceutical company Retrophin Inc. in New York December 17, 2015. REUTERS/Lucas Jackson
(Reuters) - KaloBios Pharmaceuticals Inc, which fired its controversial Chief Executive Martin Shkreli earlier this month, said it had requested an appeal of Nasdaq’s decision to delist its shares.
The embattled drugmaker said last week it had been notified by Nasdaq that its stock would be delisted using the exchange operator’s “discretionary” authority.
A hearing on the appeal has been scheduled for Feb. 25, the company said on Tuesday.
KaloBios on Monday said two directors - Tom Fernandez and Marek Biestekhad - had resigned in the wake of Shkreli’s arrest for alleged securities fraud.
Shkreli gained notoriety after dramatically raising the price of a drug used to treat a dangerous parasitic infection when he was the CEO of privately held Turing Pharmaceuticals Inc. He stepped down as Turing CEO on Dec. 18.
KaloBios named Shkreli as its CEO on Nov. 20, after Shkreli and a consortium of investors bought a 70 percent stake in the company.
Shares of San Francisco, California-based KaloBios have not traded since last Thursday.
Reporting by Natalie Grover in Bengaluru; Editing by Anil D’SilvaOur Standards: The Thomson Reuters Trust Principles.
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7797a95e7f11d1c8ec66ea6a236ba593 | https://www.reuters.com/article/us-kanabo-m-a-spinnaker/israeli-cannabis-firm-kanabo-to-be-bought-by-uks-spinnaker-idUKKBN1Y61DS?edition-redirect=uk | Israeli cannabis firm Kanabo to be bought by UK's Spinnaker | Israeli cannabis firm Kanabo to be bought by UK's Spinnaker
By Reuters Staff2 Min Read
(Reuters) - Kanabo Research has agreed to be bought by cash shell Spinnaker Opportunities SOP.L in what could lead to the first listing of a cannabis company on London's main stock market and help the Israeli firm raise cash for clinical trials and newer products.
Spinnaker said on Monday the companies had agreed to a proposed reverse takeover, which would allow Tel Aviv-based Kanabo to bypass traditional listing rules.
Spinnaker did not disclose the deal value in a statement. However, in an email, the company’s chairman, Andy Morrison, said the deal size was “comfortably within” the 5 million to 30 million pound ($6 million-$39 million) range earmarked for an acquisition.
Medical cannabis is one of the fastest-growing sectors on the Tel Aviv stock exchange, and lawyers have said London has the potential to attract money from diverse sectors such as food and health, which uses cannabis as an ingredient in some products.
Kanabo Chief Executive Officer Avihu Tamir told Reuters in August that he had expected better prospects in London than in more saturated markets.
As part of its plan to list the combined company on the London Stock Exchange, Spinnaker also agreed to pump in 200,000 pounds into Kanabo.
The Israeli company already has a promise of 1.4 million pounds from the London-listed firm.
Kanabo supplies medical cannabis products that do not contain THC, the psychoactive ingredient in marijuana which causes hallucinations. Its products are delivered through a vaping device.
The LSE has not seen many pot firms in its indexes. GW Pharmaceuticals GWPH.O, which makes marijuana-based epilepsy treatments, was listed on the bourse's junior market between 2001 and 2016.
Reporting by Pushkala Aripaka and Noor Zainab Hussain in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.
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5490d738684d124ab4fb106525453128 | https://www.reuters.com/article/us-kandy-m-a-bayer/bayer-takes-on-astellas-in-purchase-of-experimental-menopause-relief-idUKKCN2570WV?edition-redirect=uk | Bayer takes on Astellas in purchase of experimental menopause relief | Bayer takes on Astellas in purchase of experimental menopause relief
By Ludwig Burger2 Min Read
FRANKFURT (Reuters) - Bayer BAYGn.DE moved to acquire a prospective non-hormonal menopause relief for an initial $425 million to strengthen its women's healthcare business, in a challenge to a similar development venture at Astellas 4503.T.
FILE PHOTO: A bridge is decorated with the logo of a Bayer AG, a German pharmaceutical and chemical maker in Wuppertal, Germany August 9, 2019. REUTERS/Wolfgang Rattay
Under the deal to buy KaNDy Therapeutics Ltd. from a group of investment firms, Bayer also agreed to pay up to $450 million for certain development achievements, with potentially more than $100 million additional sales-dependent payments, the German company said in a statement on Tuesday.
KaNDy in January announced positive data from the second of three phases of testing for NT-814, a new non-hormonal daily pill to ease hot flushes and night sweats, which Bayer said could generate peak annual sales of more then 1 billion euros ($1.17 billion).
It is behind Japan’s Astellas, which a year ago started the third phase of testing of a similar compound known as fezolinetant. NT-814, in turn, would address a wider range of symptoms, the head of Bayer’s drugs division Stefan Oelrich told Reuters.
Bayer is seeking to revive its women’s healthcare business as cheaper copied versions have lowered its sales of birth control pills.
It is close to settling injury claims over inserted birth control device Essure for more than 1 billion euros.
“We are one of the leaders in the area of women’s health... resulting in synergies on many levels, starting with product development, but also commercialisation,” Oelrich said.
Previous moves to reinvigorate the franchise include an alliance with Evotec EVTG.DE to develop a treatment for a common cause of infertility in women.
Bayer’s pharma unit, which in 2018 changed its strategy to increase its reliance on external sources of innovation, would not rule out future transactions larger than the KaNDy deal, Oelrich told Reuters.
But he cautioned that late-stage projects came at “very, very high prices”.
Reporting by Ludwig Burger; editing by Michelle Martin and Barbara LewisOur Standards: The Thomson Reuters Trust Principles.
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8d19721cf95a34577f5e7a929ff517cf | https://www.reuters.com/article/us-kansas-education-idUSKCN0X42AJ | Kansas governor signs funding bill to keep schools open | Kansas governor signs funding bill to keep schools open
By Reuters Staff2 Min Read
Republican Kansas Governor Sam Brownback speaks to supporters after winning re-election in the U.S. midterm elections in Topeka, Kansas, in this November 4, 2014 file photo. REUTERS/Mark Kauzlarich
(Reuters) - Kansas Governor Sam Brownback said on Thursday he signed a bill enacting a new school funding formula to replace one found to be unconstitutional by the state supreme court, which set a June deadline for legislative action.
The Kansas Supreme Court ruled in February that the funding system approved in 2015 by the Republican-controlled legislature was inequitable, falling $54 million short in funding for primary and secondary students in poor districts. Justices also warned that schools would be ordered to close if the legislature failed to take action by June 30.
“This bill is the result of a delicate legislative compromise – one that I respectfully endorse and that the court should review with appropriate deference,” the Republican governor said in a statement.
But Alan Rupe, an attorney representing four public school districts that sued the state, said the new law does not remedy the inequity problem and that he will ask the supreme court to review the law.
“It’s not going to work. It actually makes things worse in terms of equity,” he said.
A summary of the legislation said it appropriates $367 million in supplemental general state aid under a new formula that takes into account the assessed valuation of property within a district on a per pupil basis.
It also adopts a previously court-approved capital outlay equalization formula and ensures no school district will have its current level of funding reduced, according to the governor’s statement.
School funding in Kansas has been the subject of litigation for decades.
Reporting By Karen Pierog; Editing by Dan GreblerOur Standards: The Thomson Reuters Trust Principles.
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25f37e02f2c8f3110a4236787b8ad6af | https://www.reuters.com/article/us-kansas-s-p-idUSKBN15N2UB | S&P revises Kansas rating outlook to negative on budget pressures | S&P revises Kansas rating outlook to negative on budget pressures
By Reuters Staff2 Min Read
Republican Kansas Governor Sam Brownback speaks to supporters after winning re-election in the U.S. midterm elections in Topeka, Kansas, November 4, 2014. REUTERS/Mark Kauzlarich
(Reuters) - S&P Global Ratings revised the outlook on Kansas’ AA-minus credit rating to negative from stable on Wednesday, citing weak economic trends and structural budget pressures.
The credit rating agency faulted the state for its continuous use of one-time revenue measures to shore up operational spending. For the upcoming biennial budget, nonrecurring measures include a plan to sell bonds backed by Kansas’ share of a nationwide settlement with U.S. tobacco companies, liquidation of a capital reserve, and pension underfunding, S&P said.
“We believe the next two years will remain pressured and the proposed budget does not adequately provide solutions to Kansas’ ongoing structural deficits,” said S&P analyst Oladunni Ososami in a statement.
She added Kansas has a one in three chance of a credit rating downgrade in the next two years.
The Kansas budget is feeling the effects of action taken by Governor Sam Brownback and the Republican-controlled legislature in recent years to cut corporate and other income taxes to help the state compete with bordering Missouri and other states for business development and jobs.
On Monday, the Republican governor blasted a legislative plan to hike income taxes.
The state has also been battling school districts in court over adequate funding.
Reporting by Karen Pierog in Chicago; Editing by Matthew LewisOur Standards: The Thomson Reuters Trust Principles.
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5b542103d912cea44567d2309900bce8 | https://www.reuters.com/article/us-kansas-shooting-idUSKCN0VY30Y | Gunman kills three in Kansas workplace, shot to death by police | Gunman kills three in Kansas workplace, shot to death by police
By Alex Dobuzinskis, Curtis Skinner4 Min Read
(Reuters) - A gunman killed three people on Thursday at a manufacturing plant in central Kansas where he worked and wounded 14 others, in a shooting spree spanning several miles that ended when a lone officer killed the suspect, authorities said.
While many of his victims were coworkers, overall the attacker appears to have opened fire at random, said Harvey County Sheriff T. Walton of the mass killing that struck fear in Hesston and the town’s major employer, a lawnmower manufacturing company.
“This is a horrible situation my friends, just terrible,” Walton said at a news conference, adding at least five of the 14 wounded were in critical condition.
Some of the shooter’s motives had emerged, but the sheriff declined to provide more details except to say the attack was “not terrorism.”
“There were some things that triggered this particular individual,” he said.
The Kansas shootings come after a Michigan man who worked as a driver for car-hailing service Uber was charged with killing six people during a shooting rampage this past weekend.
In December, a husband and wife shot to death 14 people at a workplace holiday party in San Bernardino, California. The couple, who died in a shootout with police, were inspired by the militant group Islamic State, FBI officials said.
A number of mass shootings in the United States have elevated gun control as a campaign issue in the November U.S. presidential election.
The Kansas attacker, who was armed with a .223-caliber assault-style rifle and a pistol, was driving a car when he began his attack about 9 miles (14 km) southeast of Hesston in the town of Newton, where he shot a man in a truck, Walton said.
The suspect then drove to a nearby intersection and shot another driver in the leg, before stealing that victim’s car and driving over to Excel Industries, his work site, where he shot a person in the parking lot, Walton said.
The gunman entered the plant, where he had been scheduled to work and where over 100 employees were beginning the day’s second shift, and he opened fire on his co-workers, killing three, the sheriff said. Other employees fled in panic.
The first responding officer traded fire with the gunman near the building’s paint room, striking him dead, Walton said.
“Even though (the officer) took fire, he went inside of that place and saved multiple, multiple lives – a hero, as far as I’m concerned,” the sheriff said.
The gunman was killed 26 minutes after the first shooting was reported in Newton.
A dispatcher with the Sheriff’s Department had identified the shooter as 38-year-old Cedric Ford and local television stations also reported that was the shooter’s name, citing witnesses.
But Walton declined to identify the suspect, saying his identity would likely be released on Friday.
Meanwhile, police were positioned outside of the suspect’s home in a tense standoff with his roommate, who refused to allow them to enter to investigate, the sheriff said.
Paul Mullet, the president and chief executive officer of Excel Industries Inc, confirmed to reporters the shooter was an employee, and said the company would take care of its affected workers.
Reporting by Alex Dobuzinskis in Los Angeles and Curtis Skinner in San Francisco, Sharon Bernstein in Sacramento and Kevin Murphy in Kansas City, Missouri; Editing by Bernard Orr and Lisa ShumakerOur Standards: The Thomson Reuters Trust Principles.
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f686a5423332b3db839f25e424c7618f | https://www.reuters.com/article/us-kansas-voterid/kansas-judge-strikes-down-voter-id-law-idUSKBN1JF09K | Kansas judge strikes down voter ID law | Kansas judge strikes down voter ID law
By Reuters Staff3 Min Read
(Reuters) - A federal judge struck down a Kansas law requiring proof of U.S. citizenship to register to vote in a decision on Monday that could make voter registration easier in the state in the run-up to November mid-term elections.
FILE PHOTO: Kansas Secretary of State Kris Kobach talks about the Kansas voter ID law that he pushed to combat what he believes to be rampant voter fraud in the United States in his office in Topeka, Kansas, U.S., on May 12, 2016. REUTERS/Dave Kaup/File Photo
The ruling ended a two-year legal battle in which Democrats argued that such ID laws targeted voters who typically support their party, such as the young and minorities. Republican proponents of the law said it was necessary to ensure the integrity of elections.
It was one of numerous voter ID laws passed by Republican-led state legislatures in recent years.
Supporters of the law included Kansas Secretary of State Kris Kobach, one of the United States’ most prominent voter fraud crusaders and an adviser to President Donald Trump on the issue.
Judge Julie Robinson found that the law “disproportionately impacted duly qualified registration applicants, while only nominally preventing noncitizen voter registration.”
She ordered Kobach, who is seeking the Republican nomination for Kansas governor, to take more hours of continuing legal education after she found him in contempt of court during the trial and chided him for legal missteps.
Kobach’s office did not respond immediately to a request for comment.
The American Civil Liberties Union (ACLU) filed suit in February 2016 challenging the Kansas law as a violation of the National Voter Registration Act, which allows individuals to register to vote at state motor vehicles offices with no more documentation than they would need to obtain a driver’s license.
The law, which took effect in 2013, required individuals to present a U.S. passport, birth certificate or other proof of citizenship in order to register to vote.
“These requirements have had one purpose only - to decrease citizen participation in Kansas elections, in ways that weaken our democracy,” the ACLU said in a statement in response to Robinson’s ruling.
Kobach argued during the trial that 129 non-U.S. citizens had voted or registered to vote in Kansas since 2000, a number he said was merely the “tip of the iceberg.”
Trump has contended, without evidence, that millions of people voted illegally in the 2016 presidential election he won. Most state election officials and election law experts say that U.S. voter fraud is rare.
Reporting by Andrew Hay in Taos, New Mexico; Editing by Paul TaitOur Standards: The Thomson Reuters Trust Principles.
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8115e825d979939f66df3d7e09b38f5b | https://www.reuters.com/article/us-kanye-west-kim-kardashian-divorce-idUSKCN24N0S3 | Kim Kardashian asks for compassion as Kanye West struggles with bi-polar disorder | Kim Kardashian asks for compassion as Kanye West struggles with bi-polar disorder
By Jill Serjeant3 Min Read
LOS ANGELES (Reuters) - Kim Kardashian on Wednesday asked for compassion and empathy for her rapper husband Kanye West’s struggles with bi-polar disorder that have led to a series of rambling public remarks on subjects ranging from politics to his marriage.
Kardashian’s statement on her Instagram stories account was her first public comment on weeks of interviews, public appearances and Twitter comments by West that have raised concern about the Grammy-winning singer’s mental health.
“As many of you know, Kanye has bi-polar disorder,” she wrote, calling him a “brilliant but complicated person.”
Kardashian did not mention West’s stated plan to run for the White House in the November 2020 election. West held a rally in South Carolina at the weekend under his self-styled Birthday Party banner but has not outlined any coherent political policies.
“Those who are close with Kanye know his heart and understand his words some times do not align with his intentions,” Kardashian wrote.
Kardashian’s comments followed another late-night series of tweets from West, including one where he said he was trying to divorce Kardashian. His tweet was swiftly deleted. The couple married in 2014 and have four children
Earlier this week West tweeted that his family was trying to get him committed to a psychiatric institution.
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West announced he had bi-polar disorder in 2018 and has in the past lamented that he feels medication stifles his creativity. He was hospitalized for psychiatric treatment in 2016.
Bi-polar disorder is a form of mental illness characterized by unusual mood swings between extreme energy and activity and depression, according to the National Institute of Mental Health. It can be treated with a combination of medication and therapy.
Kardashian, a cosmetics businesswoman who first found fame on the TV reality show “Keeping Up With the Kardashians,” said she and her family were trying to get help for West, and spoke about the stigma and misunderstandings around mental health.
“Those that understand mental illness or even compulsive behavior know that the family is powerless unless the member is a minor,” she said.
She said individuals themselves have to engage in the process of getting help, no matter how hard family and friends try.
“I kindly ask that the media and public give us the compassion and empathy that is needed so that we can get through this,” she added.
Reporting by Jill Serjeant; Editing by Howard GollerOur Standards: The Thomson Reuters Trust Principles.
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4f72ec655809bb4f5a49d7877cd5ab82 | https://www.reuters.com/article/us-karen-millen-m-a-boohoo-group-idUKKCN1UW12X?edition-redirect=uk | Fashion retailer Boohoo seals Karen Millen, Coast deal | Fashion retailer Boohoo seals Karen Millen, Coast deal
By Pushkala Aripaka3 Min Read
(Reuters) - Internet-based fashion group Boohoo BOOH.L has bought the online businesses of fashion chains Karen Millen and Coast, leaving a question mark over the fate of the two retailers' stores and concessions in Britain.
FILE PHOTO: A shopper walks pass advertising billboards for Boohoo and for 'Pretty Little Things', a Boohoo brand, at Canary Wharf DLR station in central London, Britain, September 17, 2018. REUTERS/James Akena/File Photo
Boohoo said it paid 18.2 million pounds ($22.14 million) in cash for the brands, in line with the details of a bid announced earlier on Tuesday.
Boohoo shares were up 6.6% as of 1338 GMT, adding to gains from earlier in the day.
Sky News had reported details of the deal late on Monday and said the sale would put hundreds of jobs at risk at the two brands’ stores.
Karen Millen had bought parts of Coast’s business after the latter went into administration last year, before putting itself up for sale a few weeks ago, joining a growing list of British retailers hit by online competition and Brexit uncertainty.
Karen Millen, founded in 1981 and owned by Icelandic bank Kaupthing, had appointed Deloitte to look at various options for the business, including a sale.
“We can expect more deals of this nature as it (e-commerce) increasingly becomes the key battleground for retail and consumer businesses seeking to build market share and dominate their particular sectors,” Jonathan Buxton, Partner and Head of Retail & Consumer at Cavendish Corporate Finance said.
Manchester-based Boohoo has been an online success story with 13 million active customer accounts across brands, drawing in a generation of younger consumers who shop on their mobile phones and share fashion tips through social media.
Its cheap clothing is in stark contrast to Karen Millen and Coast, known for higher-priced party, office and wedding wear.
“Karen Millen, in particular, would also bring a slightly older and higher price point shopper into the group fold to extend (Boohoo’s) overall offer,” Liberum analyst Adam Tomlinson said, adding that Boohoo could also make use of its distribution channel.
Karen Millen and Coast have a presence in nearly 60 countries through around 500 stores, franchises and concessions, as well as their online businesses and together had direct online sales of 28.4 million pounds in the 12 months ended February.
Boohoo racked up more than 250 million pounds in sales in its most recent quarter to the end of May.
The average price of Boohoo’s self-branded apparel was 13 pounds in 2017, while products from its PrettyLittleThing range retailed for an average of 16 pounds, according to Boohoo.
Reporting by Pushkala Aripaka and Noor Zainab Hussain in Bengaluru; editing by Patrick Graham/Kirsten Donovan/Jane MerrimanOur Standards: The Thomson Reuters Trust Principles.
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e54215234a48285a69c3f38b00dd5373 | https://www.reuters.com/article/us-kaspersky-lab-switzerland-exclusive/exclusive-kaspersky-lab-plans-swiss-data-center-to-combat-spying-allegations-documents-idUKKBN1GX0EK?edition-redirect=uk | Exclusive: Kaspersky Lab plans Swiss data center to combat spying allegations - documents | Exclusive: Kaspersky Lab plans Swiss data center to combat spying allegations - documents
By Jack Stubbs, Jim Finkle5 Min Read
MOSCOW/TORONTO (Reuters) - Moscow-based Kaspersky Lab plans to open a data center in Switzerland to address Western government concerns that Russia exploits its anti-virus software to spy on customers, according to internal documents seen by Reuters.
FILE PHOTO: The logo of Russia's Kaspersky Lab is displayed at the company's office in Moscow, Russia October 27, 2017. REUTERS/Maxim Shemetov/File Picture
Kaspersky is setting up the center in response to actions in the United States, Britain and Lithuania last year to stop using the company’s products, according to the documents, which were confirmed by a person with direct knowledge of the matter.
The action is the latest effort by Kaspersky, a global leader in anti-virus software, to parry accusations by the U.S. government and others that the company spies on customers at the behest of Russian intelligence. The U.S. last year ordered civilian government agencies to remove the Kaspersky software from their networks.
Kaspersky has strongly rejected the accusations and filed a lawsuit against the U.S. ban.
The U.S. allegations were the “trigger” for setting up the Swiss data center, said the person familiar with Kapersky’s Switzerland plans, but not the only factor.
“The world is changing,” they said, speaking on condition of anonymity when discussing internal company business. “There is more balkanisation and protectionism.”
The person declined to provide further details on the new project, but added: “This is not just a PR stunt. We are really changing our R&D infrastructure.”
A Kaspersky spokeswoman declined to comment on the documents reviewed by Reuters.
In a statement, Kaspersky Lab said: “To further deliver on the promises of our Global Transparency Initiative, we are finalizing plans for the opening of the company’s first transparency center this year, which will be located in Europe.”
“We understand that during a time of geopolitical tension, mirrored by an increasingly complex cyber-threat landscape, people may have questions and we want to address them.”
Kaspersky Lab launched a campaign in October to dispel concerns about possible collusion with the Russian government by promising to let independent experts scrutinize its software for security vulnerabilities and “back doors” that governments could exploit to spy on its customers.
The company also said at the time that it would open “transparency centers” in Asia, Europe and the United States but did not provide details. The new Swiss facility is dubbed the Swiss Transparency Centre, according to the documents.
DATA REVIEW
Work in Switzerland is due to begin “within weeks” and be completed by early 2020, said the person with knowledge of the matter.
The plans have been approved by Kaspersky Lab CEO and founder Eugene Kaspersky, who owns a majority of the privately held company, and will be announced publicly in the coming months, according to the source.
“Eugene is upset. He would rather spend the money elsewhere. But he knows this is necessary,” the person said.
It is possible the move could be derailed by the Russian security services, who might resist moving the data center outside of their jurisdiction, people familiar with Kaspersky and its relations with the government said.
Western security officials said Russia’s FSB Federal Security Service, successor to the Soviet-era KGB, exerts influence over Kaspersky management decisions, though the company has repeatedly denied those allegations.
The Swiss center will collect and analyze files identified as suspicious on the computers of tens of millions of Kaspersky customers in the United States and European Union, according to the documents reviewed by Reuters. Data from other customers will continue to be sent to a Moscow data center for review and analysis.
Files would only be transmitted from Switzerland to Moscow in cases when anomalies are detected that require manual review, the person said, adding that about 99.6 percent of such samples do not currently undergo this process.
A third party will review the center’s operations to make sure that all requests for such files are properly signed, stored and available for review by outsiders including foreign governments, the person said.
Moving operations to Switzerland will address concerns about laws that enable Russian security services to monitor data transmissions inside Russia and force companies to assist law enforcement agencies, according to the documents describing the plan.
The company will also move the department which builds its anti-virus software using code written in Moscow to Switzerland, the documents showed.
Kaspersky has received “solid support” from the Swiss government, said the source, who did not identify specific officials who have endorsed the plan.
Reporting by Jack Stubbs in Moscow and Jim Finkle in Toronto; Editing by Jonathan WeberOur Standards: The Thomson Reuters Trust Principles.
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801ff579390f5e6d937afece2d3cfb9f | https://www.reuters.com/article/us-kazakhstan-china-activist/kazakh-china-rights-activist-detained-on-hate-speech-charges-idUSKBN1QR0ME | Kazakh China rights advocate detained on hate speech charges: activists | Kazakh China rights advocate detained on hate speech charges: activists
By Reuters Staff2 Min Read
ALMATY (Reuters) - Kazakh police have detained a Chinese-born activist who has campaigned on behalf of ethnic Kazakhs in China, fellow activists said on Sunday.
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Serikzhan Bilash, a naturalized Kazakh citizen who was born in the Chinese region of Xinjiang, is a de facto leader and public face of Atajurt, a group that has worked for the release of ethnic Kazakhs from “re-education” camps where activists say more than 1 million ethnic Uighurs and other Muslims are held.
A fiery orator fluent in Kazakh, Chinese and English, Bilash has become a prominent figure on the Kazakh political scene.
Atajurt said security forces had broken into Bilash’s hotel room in Almaty in the early hours of Sunday, detained him and quickly flown him to Astana, the capital of the former Soviet republic.
Bilash’s lawyer, Aiman Umarova, posted a video on Sunday saying she had just arrived in Astana and was going to visit him at the police department where he was being held.
Astana’s police department had no immediate comment.
In Beijing, Chinese Foreign Ministry spokesman Lu Kang said he had noted the reports about Bilash, and said he had illegally entered Kazakhstan in 2018.
“According to what is understood he may have some debt problems in China,” Lu said.
“This kind of person has ulterior motives to make things up. I think the aims behind this need no explanation,” he added, without elaborating.
The government of the Central Asian nation has avoided criticizing China’s Xinjiang policies, but negotiated the release of some two dozen people with dual Kazakh and Chinese citizenships detained in China.
Reporting by Olzhas Auyezov; Additional reporting by Tamara Vaal in Astana, and Ben Blanchard in Beijing; Editing by Kevin Liffey and Richard BorsukOur Standards: The Thomson Reuters Trust Principles.
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4c9107b7e37524f61685b02079bfc0f1 | https://www.reuters.com/article/us-kazakhstan-china-protests/dozens-protest-against-chinese-influence-in-kazakhstan-idUSKCN1VP1B0 | Dozens protest against Chinese influence in Kazakhstan | Dozens protest against Chinese influence in Kazakhstan
By Reuters Staff3 Min Read
ALMATY/NUR-SULTAN (Reuters) - Kazakhs protesting against the construction of Chinese factories held public rallies in three Kazakh cities on Wednesday, demanding a ban on an initiative which the Central Asian nation’s government hoped would bring investment and jobs.
People protest against the construction of Chinese factories in Kazakhstan during a rally in Almaty, Kazakhstan September 4, 2019. REUTERS/Pavel Mikheyev
Neighboring China is already one of the oil-rich former Soviet republic’s biggest investors and trade partners, but its broad presence and Beijing’s campaign to “de-radicalise” ethnic minorities in the Xinjiang province have contributed to a growing anti-Chinese sentiment.
The protests first started in the small industrial town of Zhanaozen in Western Kazakhstan on Sunday as about 100 people gathered to demand a ban on what they described as plans to move outdated and polluting Chinese plants to Kazakhstan.
On Monday, the crowd grew to more than 300 people, according to local newspaper Lada. Speaking to the protesters, regional governor Serikbai Trumov said there were no such plans - although the government has said it was discussing a number of investment projects with Chinese companies.
But rallies continued on Wednesday, widening to include the capital, Nur-Sultan, and the country’s biggest city, Almaty.
In Almaty, about 30 people gathered outside the mayor’s office holding banners such as “No Chinese plants” and singing the national anthem. In Nur-Sultan, about two dozen people rallied at one of the central squares, displaying banners with similar messages.
China is a major investor in Kazakhstan’s energy sector and buys oil and gas from the mostly Muslim nation of 18 million, but critics accuse some Chinese companies - as well as Western ones - of hiring too few local staff and paying them less than foreign workers.
Also driven by anti-Chinese sentiment was a series of protests in 2016 against a planned land reform which its opponents said would have allowed foreigners to scoop up huge swathes of Kazakh farmland. The reform was shelved.
Beijing’s “de-radicalisation” drive in Xinjiang, which according to human rights groups has landed a million people, including some ethnic Kazakhs, in prison-like camps, has also been a source of tension.
Last March, Kazakhstan arrested a leading campaigner against the camps, charging him with hate speech. A local court set him free in a plea bargain last month.
Reporting by Pavel Mikheyev in Almaty and Tamara Vaal in Nur-Sultan; Writing by Olzhas Auyezov, Editing by William MacleanOur Standards: The Thomson Reuters Trust Principles.
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637f377b2b6af007c563e727d5b31495 | https://www.reuters.com/article/us-kazakhstan-khrapunov-lawsuit/former-kazakh-minister-faces-u-s-racketeering-lawsuit-idUSBREA4D0NG20140514 | Former Kazakh minister faces U.S. racketeering lawsuit | Former Kazakh minister faces U.S. racketeering lawsuit
By Dan Levine2 Min Read
(Reuters) - The largest city in Kazakhstan has sued former government minister Viktor Khrapunov and several of his relatives in the United States, accusing them of systematically looting state assets for their own benefit.
The lawsuit, filed on Tuesday by the city of Almaty in a Los Angeles federal court, alleges civil racketeering charges and several other counts. U.S. courts have jurisdiction because Khrapunov and his family have purchased real estate in Southern California, the documents show.
A spokesman for the city declined to comment. Khrapunov did not immediately respond to an email listed on his website.
Khrapunov was mayor of Almaty until 2004, and in 2007 became national Minister of Emergency Measures until he stepped down later that year, according to the lawsuit. He lives in Switzerland.
Khrapunov is the target of criminal fraud charges in Kazakhstan, and the Swiss government has frozen several family accounts, the documents show.
When he was mayor, Khrapunov engineered the sale of state-owned real estate to entities controlled by family members, the city’s filing states. In some instances, Khrapunov then caused development permits to be issued in connection with the sites which increased their value.
Khrapunov and family members then resold the parcels “at a significant profit,” the lawsuit says.
When he became aware that the Kazakh government had begun an investigation, he fled to Switzerland in a private jet, the lawsuit says. Khrapunov has accumulated a fortune worth between $324 million and $432 million, the lawsuit claims, placing him among the 300 richest people in Switzerland.
To conceal their activities, Khrapunov’s family executed several transactions abroad, the lawsuit says, including buying homes in Beverly Hills and Studio City, California.
The case in U.S. District Court, Central District of California is City of Almaty vs. Viktor Khrapunov et al., 14-3650.
Reporting by Dan Levine in San Francisco; Additional reporting by Dmitry Solovyov in Kazakhstan; Editing by Richard ChangOur Standards: The Thomson Reuters Trust Principles.
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632f1036777ee8a27f75a2af1065833d | https://www.reuters.com/article/us-kazakhstan-landrights-trial-idUSKCN12C035 | Campaigners urge Kazakhstan to free activists facing trial over land reform protests | Campaigners urge Kazakhstan to free activists facing trial over land reform protests
By Umberto Bacchi, Thomson Reuters Foundation2 Min Read
LONDON (Thomson Reuters Foundation) - Two Kazakh land rights activists who are due to go on trial over their involvement in public protests against land reforms in the Central Asian nation are facing unfounded criminal charges and should be released, Human Rights Watch (HRW) said on Tuesday.
Max Bokayev and Talgat Ayanov are each facing up to 10 years in prison on charges of inciting social and national discord, disseminating false information and organizing an illegal protest, the human rights group said.
“What we have here are individuals that are being criminally prosecuted and face extended prison terms for exercising their right to peaceful protest,” Mihra Rittmann, Europe and Central Asia researcher at HRW, told the Thomson Reuters Foundation.
“Bokayev and Ayanov should be freed,” Rittmann said in a statement. “Expressing a negative opinion about government policy is not a crime.”
The Kazakh embassy in London did not reply to requests for comment.
The protests, in April and May, were sparked by fears the reforms would allow foreigners - especially Chinese companies - to take over farmland, though many Kazakhs also demonstrated to express general discontent at President Nursultan Nazarbayev’s rule.
Police detained dozens of protesters most of whom were either fined or jailed for up to 15 days.
Several leading activists, including Bokayev and Ayanov, were charged with more serious offences.
In a rare climbdown following the protests, Nazarbayev in August deferred a plan to lease large areas of farmland to foreign investors for five years. He also set up a commission to review the land reforms and replaced the ministers for the economy and agriculture.
The legal changes in Kazakhstan which have been shelved for five years would allow the government to sell land to joint ventures, provided they are controlled by Kazakh residents.
Land sales to foreigners remain barred but the maximum term of lease to foreigners is extended to 25 years from 15 years.
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