US pharmaceutical giant Pfizer has confirmed its takeover of Medivation, for an agreed price of $14 billion.
Pfizer will pay $81.50 per share for Medivation, 21 percent above the firm’s share price as of last Friday and above the $80 expected in previous reports.
Ian Read, chairman and chief executive officer of Pfizer, commented on the announcement:
“The proposed acquisition of Medivation is expected to immediately accelerate revenue growth and drive overall earnings growth potential for Pfizer.
Global markets remained on edge on Monday ahead of the Federal Bank meeting in Jackson Hole later this week.
Asian markets closed broadly down, with just the Nikkei 225 and the Hang Seng bucking the general negative trend. The FTSE has been in the red for most of the session, with US markets expected to follow suit.
However, the dollar has strengthened this morning after comments from Fed Vice Chairman Stanley Fischer, giving an upbeat assessment of the US economy’s current strength.
Investors remain uncertain ahead of the Federal Reserve’s meeting on Friday, which should clarify the timescale for an interest rate rise.
Wynn Palace, the newest luxury hotel and casino of founder and CEO of Wynn Resorts Limited Stephen Wynn, is set to open in Macau this evening.
The $4.1 billion project has been in development for six years, suffering delays and uncertainty about it’s profitability as the Chinese economic slowdown and Beijing’s crackdown on corruption weighed heavy on the gambling industry in Macau
Macau’s gambling industry is on a down-turn
Macau is the only place in China in which casinos are legal and has the world’s biggest gambling industry by revenue, which is around seven times bigger than Las Vegas. The small Chinese territory therefore relies on the booming casino industry and the tourism it generates for more than 80% of it’s GDP.
However, the Macau economic flagship suffered since 2014. The Chinese government decided to crack down on corruption, regulations on gambling where tightened and Macau banned smoking in casinos, causing gamblers from around the world to stay away. Gambling revenues thereafter dropped to a five-year low.
Macau has since decided to work on expanding its tourism industry in other directions than gambling. New policies incentivise resorts to offer a more diversified and family friendly entertainment program.
The Macau government is also limiting the growth of the gambling industry by cutting supply growth of gambling tables to 3% annual expansion. The vast cut back in permissions for new tables reduces dealer activity and game money inflow. This is likely to weigh heavily on gambling revenues.
Union Gaming analyst John DeCree stated: “It’s a pretty significant driver of revenue to have as many as tables as you can, especially during peak periods.”
While the casino industry does still generate revenues, revenue growth has been on a down turn for 26 straight months in July.
Other industry members refocus business strategies
The new barriers, curbing gambling revenue, have caused some businesses, such as Melco Crown Entertainment Ltd. and Sheldon Adelson’s Sands China Ltd., to design new Macau projects to be more family friendly. New entertainment options are set to attract so-called “mass-market recreational gamblers” and their families, as high rollers’ interest to spend their millions in Macau has been on the decline.
Wynn is betting large on the return of the high-rollers
However, Wynn, known for being a major influencer in creating the booming international gambling industry on the Las Vegas strip in the 1990s, is betting large on a recovery of the Macau high rolling gambling business.
Wynn Palace is the developer’s most expensive and luxurious project yet.
Guests will arrive in the resort by crossing an eight-acre artificial lake in an air-conditioned gondola. The resort, set in a floral theme, features extensive floral displays, including a 6.8 metre Ferris wheel decorated with 103,000 flowers by floral designer Preston Bailey. The extensive art collection further includes a US$33.7 million, 3-ton stainless steel sculpture created by artist Jeff Koons. Many of the over 1,700 rooms also feature luxurious designs in crystal.
Wynn stated: “We’ve spent a 100 million dollars on artwork, sculptures, ceramics, 18th-century vases and screens of very high and rare quality.”
Ferris Wheel with flower display – Sourced @ Wynn Palace
Guests will be able to enjoy treatments in Macau’s largest spa which include facials using crushed diamond and gold-leaf. They can further choose from around a dozen Michelin-starred dining options.
The new casino planned to allocate 60 of 400 planned tables to the high-rollers, set to be attracted by the luxurious and exclusive offering.
Wynn is aware of the risks ahead
While Wynn has taken a huge leap of faith on the recovery of the high-end gambling industry in Macau, he is not at all disillusioned about the risks entailed.
Wynn said in an interview with Bloomberg: “The last two places that opened did not cause the market to grow, did they? No. Will this one? Good question. We’ll get an answer to that in September or October. I’m anxious to see it myself.”
The Macau government has approved only 100 tables for the new casino’s debut. 50 more tables will be allocated throughout the next two years.
Wynn said: “We thought 100 was the minimum, and we planned accordingly and we hired accordingly,”. According to him, the lower than hoped for table allocation will not change profit projections.
Wynn Resorts is planning to shift some 250 tables from the already existing operation in Macau, Wynn Macau, to Wynn Palace, to make up the difference. However, shares of the company’s Macau operations still dropped in the aftermath of the lower than expected table allocation.
Wynn Resorts Limited is performing well this year
Wynn Resorts traded 50% higher on the New York stock exchange over the year. Adjusted earnings per share of Wynn Resort beat estimates of 91 cents per share in the June quarter, generating $1.07 per share, according to Thompson Reuters.
The Macau operations also exceeded estimates by $49.1 million, generating revenue of $639.3 million in the quarter finishing June and could report on a 38% rise in share prices in Hong Kong trading this year.
With no clear consensus about how the Macau government will proceed with its policy measures to reinvent its tourism industry, it remains to be seen if Wynn’s gamble on the Macau high-rollers will pay off.
Oil prices have sunk this morning, ending a rally that pushed prices up by 20 percent this month alone.
The price movement comes after Iraq planed to increase crude exports by 5 percent this week, adding more fuel to an already oversupplied market. The figure amounts to an increase of around 150,000 barrels a day, plunging oil prices back below $50.
Brent dropped over 3 percent in early trading, currently trading at $49.32. WTI is down 2.73 percent at $47.77 (1228GMT).
Mining companies were also hit hard on Monday as a stronger dollar brings down commodity prices. Glencore (LON:GLEN) is currently down 3.01 percent at 182.85, with BHP Billiton (LON:BLT) down 2.28 percent at 1,029.00 (1237GMT).
Immigration New Zealand have seen a sharp increase in registrations from Britons in the wake of the European Referendum, prompting the media to warn of a ‘British invasion’.
NZ Immigration received 998 registrations of interest from British nationals on the day Britain voted to leave, compared to just 109 the day before. Since the vote 10,647 UK citizens have registered their interest in moving to New Zealand, nearly double that of the same period last year.
The NZ Immigration site allows those interested in life in New Zealand to explore visa options, check their skills and see if they are able to apply to emigrate there.
Massey University sociologist Professor Paul Spoonley told the NZ Herald that “Brexit is the push factor” for middle-class professionals wanting a different life.
“We’d be getting people from the UK who are tired of a narrow-minded Britain and who want to experience something quite different.
“New Zealand is very different, it is multicultural, very tolerant and it’s got a good lifestyle and a more temperate climate.”
New Zealand are traditionally tough on immigration, with most visas available for just one or two years. In the year to June, 4,924 Britons were granted permanent residency, with 1,176 student visas given to British students.
Cambridge Innovation Capital, a University of Cambridge initiative supporting businesses and growth in the city, has raised £75 million in new capital in an oversubscribed fundraising round.
CIC is the preferred investor of the University of Cambridge and has previously committed £33 million to 13 companies in the technology and healthcare sectors, a growing industry in the Cambridge area.
The CIC’s latest investors include Woodford Investment Management, Winton Ventures and the Oman Investment Fund, with the funds raised being used to invest further into businesses in the Cambridge area, and expand the CIC team.
Victor Christou, CEO of CIC, commented on the fundraising:
“We are delighted by the support we have received in this fundraising. Since the inception of CIC and its initial fundraising in 2013, the Company has made significant progress within the Cambridge Cluster, one of the richest seams of scientific and technological innovation in the world. This additional capital will enable CIC to continue to support exciting IP-rich companies and we look forward to continuing to work very closely with the University of Cambridge and our network within the Cambridge area. We thank our existing shareholders for their continued support and welcome our new shareholders with great enthusiasm.”
ChemChina-Syngenta deal approved
The largest ever foreign acquisition by a Chinese company has just been cleared, after the US national security panel examined ChemChina’s takeover bid for Syngenta.
The takeover was agreed in February and sees ChemChina pay $43 billion for the world’s largest pesticides maker, pushing Syngenta shares up over 11 percent.
The approval remained a major hurdle for the takeover and now paves the way for the finalisation of the deal by the end of the year.
Wireless group post positive results
Radio station owner Wireless Group saw results “broadly in line” with expectations for the first six months of the year, boosted by sports station talkSPORT.
The Group benefited from the £79.2 million sale of its TV business to ITV back in February, boosting pre-tax profit up to £82.1 million up form a £500,000 loss a year ago.
The Group’s Chairman Richard Huntingford commented:
“The recent RAJAR and JNLR figures demonstrate the strength of the Group’s ongoing brands in its key markets as well as the ability to launch successfully new digital brands that are attractive to listeners which stands the Group in good stead going forward.”
Wireless Group shares are up 1.21 percent at 314.00 (1101GMT).
Dollar up on Fed decision
The dollar strengthened on Monday as speculation increased ahead of this week’s statement from the Federal Reserve on when it expects to raise rates.
Fed Vice Chairman Stanley Fischer pushed markets up on Sunday after he signalled the economy was strong enough to implement a rate rise soon, ahead of the Fed’s meeting later this week.
The dollar index rose 0.4 percent, with US 10-year Treasury yields hitting a two week high.
Swiss pharmaceutical company Pfizer (NYSE:PFE) are in talks to acquire Medivation Inc in order to boost their oncology offerings.
Medivation has seen several takeover offers from pharmaceutical companies globally, including Merck & Co Inc and Gilead Sciences Inc. Pfizer is reported to be offering just over $80 per share for Medivation, a significant increase on Sanofi’s offer of $52.50 back in April.
Pfizer is already a market leader in cancer treatment, and a takeover of Medivation will give them access to Medivation’s prostate cancer drug Xtandi, as well as the breast cancer treatment Talazoparib, which is still under development.
Medivation (NASDAQ:MDVN) shares were up over 20 percent at close on Friday.
The Bank of England is currently touring the UK to introduce the British public to ‘ The New Fiver ’, which will enter circulation in 24 days.
The BoE is taking its new fiver on a roadshow. The aim is to familiarise the British public with the benefits of the country’s newest innovation in safe and sustainable cash. Yesterday, the new fiver was on show at Adventure Island in Southend on Sea. Next week the roadshow will move around Scotland.
The new fiver will be stonger, cleaner and safer
The new bank note is said to be a stronger, cleaner and safer alternative to the current five-pound bank note. It is printed on polymer, a thin and flexible plastic.
Polymer is stronger than paper, making it more resilient to tearing and scrunching. The material is also dirt and moisture resistant, which will ensure that the new fiver stays clean and lasts longer. The BoE expects polymer notes to last 2.5 times longer than current bank notes.
Printing more sustainable notes will also have an environmental impact, as a longer lifetime of notes means that less need to be printed in total. Therefore, less energy is spent on the manufacturing of bank notes and their transportation, and the material is fully recyclable.
The BoE reports that in 2015 alone 21,835 notes had to be replaced. 10,761 notes were torn, 5,364 chewed or eaten, 2,912 contaminated, 1,800 washed and 997 damaged or destroyed by fire; large numbers which, according to the BoE, will be reduced greatly by the more resilient material of the new five-pound note.
The new note will also be less susceptible to counterfeiting as new design features will make the note harder to copy. A transparent window and a foil Elizabeth Tower, in gold on the front and silver on the back of the note, are all features designed to prevent illegal currency.
Polymer notes with similar security features are already in use successfully in other countries. Australia launched its first polymer bank notes in 1988. It was also the first country to use a transparent window as a security feature on such notes. Today all Australian bank notes are made from polymer.
As per design, the new fiver features Winston Churchill on the back.
BoE Governor Mark Carney stated:
“Winston Churchill was one of the greatest statesmen of all time and is the only Prime Minister to win the Nobel Prize for literature. As he himself said, a “nation that forgets its past has no future”. Our banknotes are repositories of the United Kingdom’s collective memory and are testaments to the outstanding achievements of the nation’s greatest individuals.
Like Churchill, the new polymer note will also stand the test of time.”
New bank notes enter circulation in 24 days
The new fiver will be entering into distribution on the 13th September this year. All paper five-pound bank notes will cease to be legal tender. Any paper five-pound bank note will from then onward have to be exchanged at the Bank of England.
The BoE has also announced that both the ten-pound and the twenty-pound bank note will also be replaced by new Polymer notes in the coming years. The new ten-pound bank note will come into circulation next summer and will feature Jane Austin on the back. By 2020, the new twenty-pound note, featuring JMW Turner on the back, will be distributed.
The Scottish banks are also set to release first polymer notes later this year.
The Royal mint is also set to release a new £1 coin in March next year.
FinTech company Mondo may be set to release its new name to the public on Thursday 25th, the company indicated in a tweet on Thursday afternoon.
Earlier this summer, Mondo asked the public’s advice on a name change after a similarly named unspecified company challenged the UK FinTech start-up. The business identified three rules to guide their search:
The name should start with the letter “M.”
The name should represent us and work across different languages and cultures
It can’t be Banky McBankface,
according to crowdfundinsider.
Mondo also stated:
“It can be painful to change the name of a product, but – being the optimists we are – we think this is a great opportunity to come up with something even better. Our commitment to transparency means we’d love your help finding something that will represent us from now on.”
The London-based FinTech start up started developing its smart phone banking service in February 2015. It broke a crowdfunding world record, raising more than £1 million in just over 1.5 minutes in its equity crowdfunding campaign on CrowdCube earlier this year.
Mondo’s name change comes just two weeks after the company declared itself a licensed bank, which is now regulated by the Financial Conduct Authority and Prudential Regulation Authority.
Looking to the future, Mondo commented:
“We’ll continue to distribute Mondo Beta cards and develop the Mondo app so that it’s ready to become your bank account in early 2017 and, of course, all current users will have the option of seamlessly switching to ‘full Mondo’! Thank you so much to everyone who is part of the wider Mondo community. We couldn’t have done it without you and we can’t wait to see what the next 18 months will bring.”
The London FinTech industry is currently one of the most thriving new developments in the ongoing digitalisation of services. However, some people in the industry are concerned that the consequences from the recent Brexit vote may negatively effect FinTech business growth in the UK.
