Tuesday, March 31, 2015

Germanwings crash a “reminder” of the value of health checks: employment … – The Australian Financial Review

The Germanwings plane crash should serve as a reminder to Australian employers that thorough medical checks are always required when a worker has other people’s lives in their hands, employment lawyers say.

Lufthansa, which owns Germanwings, has revealed on Wednesday that Andreas Lubitz, the co-pilot of a plane that crashed in the French Alps,  had told his employer he had depression in 2009 after interrupting his flight training.  

Lufthansa said it had handed additional documents, especially medical and training documents, to prosecutors in the western city of Duesseldorf after “further internal investigations”. Mr Lubitz is suspected of having deliberately piloted Germanwings flight 4U 9525 into a mountain killing all 150 people on board.

Australian employment lawyers have used the case to highlight the importance of employers addressing mental illness at work.

Under provisions in state workplace health and safety laws, the employer’s responsibility to protect the safety of others, could override any possible discriminatory claims an employee might consider, lawyers said.

“Employers have an obligation to provide employees with a safe working environment free from risk to health, so their obligation is to check for when mental illness arises … if that mental illness may effect the employer’s ability to provide an employee (or other employees) with a safe working environment,” said senior associate at McDonald Murholme, Andrew Jewell.

The basic principle is that unless a worker’s mental health is directly related to the requirements of their job, an employer should not be asking about it. And in most cases, mental health is not directly relevant to the employee’s job description.

An employer could inquire about mental health, or ask to have it assessed when mental illness was preventing an employee from performing their duties; it was the cause of their misconduct, or their job description required evidence of mental health, said Justine Turnbull, partner at Seyfarth Shaw, which specialises in workplace law.

“You can’t just check for mental illness,” said Ms Turnbull.

“If someone is not performing their duties, or there is concern about their conduct, an employer can ask them whether there is something that is causing that. If they disclose they have mental illness, an employer would then ask for certification from a medical practitioner to check they are fit to perform the role.”

Employers walk a fine line

If employees are asked about their mental illness when it does not relate to their job, and a disclosure then leads to them missing out on a promotion, or it threatens their job altogether, an employer could risk a fair work or discrimination case.

“You can’t make a decision about someone based on their physical or mental illness unless there is clearly objectively verifiable proof that they can’t perform their role,” said Ms Turnbull. “Sacking someone for short-term depression would see an employer subject to prosecution under anti-discrimination legislation.”

And the leaking of any information relating to a person’s mental illness would put an employer in breach of privacy laws. 

Regular health checks and assessments become more critical when an employee has other people’s lives in their hands.

Public transport drivers, health practitioners and pilots are bound by health and safety regulations to ensure there are ongoing checks and follow up investigations when evidence of illness emerges, said partner at employment, discrimination and labour relations law firm, Justitia, Sarah Rey.

“The general approach would be that the employer would be regularly assessing the capabilities of staff and as soon as there is information that suggests someone is not fit for work, an employer would then refer that person for further assessment by a medical practitioner for an opinion on whether a person can still work.”

The employer could request multiple assessments to verify the person’s health, but if the employee is consistently shown to be fit for work.

Ms Rey said it was wise for employers to consider alterative options for employees with ill health.

“An employer might want to consider whether there are some adjustments to the job that would accommodate the person.”

Could the Germanwings crash have happened in Australia? 

Ron Bartsch, who is chairman of leading consulting firm to the aviation industry, Avlaw, said he believed the Germanwings crash “would have been handled differently in Australia” citing strict safety standards in the country. 

Health and mental checks and assessments of pilots in the aviation industry were “very stringent”, with commercial pilots being testing by medical practitioners at least once a year, under requirements of the Civil aviation act 1988, he said.

The medical assessors were appointed by a chief medical examiner within the Civil Aviation Safety Authority (CASA) and the regulator had oversight over ensuring standards, which were mostly based on universal aviation standards.

Similar to most other cases, pilots only had to prove they were fit to perform their role as a pilot. So they didn’t need to disclose how much alcohol they drink regularly, but prove they had not consumed alcohol in the 12 hours before flying.

Mental illness was considered on a case by case basis. Mr Bartsch was aware of pilots who were depressed after a marriage breakdown, and referred for a further medical assessment, but deemed fit to work. Severe illness, found to have potential to cause harm to others, would not pass the test.

He said Australia had “prided itself” on a high level of safety due to an affective regulatory body in CASA, the body’s drug and alcohol management program, and that airlines go beyond the law to ensure pilots are fit when they are recruited by administering rigorous psychometric tests. 

“The degree of psychometric testing of the airlines and the extent of the evaluation at the time of employment goes beyond the international standards and is not legally required.”

Top tips for managers

Workplace experts have three top tips for managing staff who appear to have a mental illness: 

  • Be clear about a worker’s job description and with any questions about someone’s capacity to perform their role, or in assessing whether they are able to do their job.
  • Have employee assistance programs and health and wellbeing programs that promote a culture where employees can openly talk about mental health.
  • Senior executives revealing their own personal struggles with mental illness promotes transparency. 
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Wall St. drops but S&P, Nasdaq register quarterly gains – Reuters

(Reuters) – U.S. stocks fell on Tuesday as energy and healthcare shares retreated, but the S&P 500 and Nasdaq registered their ninth straight quarterly advance.

The S&P’s 500 quarterly winning streak was its longest since 1998, while the Nasdaq’s was its longest ever. The Dow registered a slight loss for the quarter.

During the session, all 10 S&P 500 sectors declined, with healthcare leading the way down. It dropped 1.5 percent, reversing strong gains from the previous day tied to deal activity.

Energy shares also retreated, falling with crude oil. The S&P Energy index declined 0.9 percent, while shares of Exxon Mobil Corp fell 0.7 percent to $ 85.

Oil was pressured as Iran and six world powers continued talks on a nuclear deal that could see the energy-rich country increase oil exports.

Investors also were anxious ahead of March payrolls data on Friday, when the stock market is closed for the Good Friday holiday. If the report is strong, investors could view the U.S. Federal Reserve as more likely to raise rates earlier than currently expected.

The dollar added to its sharp gains for the quarter, stoking worries about earnings for U.S. multinationals. S&P 500 earnings are expected to have declined by 2.8 percent in the first quarter from a year ago, Thomson Reuters data showed.

“Today’s price action is a reflection of all the bad in the quarter – the stronger dollar, weaker oil – and in some respects just a snapback from yesterday’s outsized gains,” said John Canally, chief economic strategist for LPL Financial in Boston.

“Tomorrow’s a new quarter and there’s a new batch of people ready to take some risks, so I wouldn’t be surprised if we see an up day.”

The Dow Jones industrial average fell 200.19 points, or 1.11 percent, to 17,776.12, the S&P 500 lost 18.35 points, or 0.88 percent, to 2,067.89 and the Nasdaq Composite dropped 46.56 points, or 0.94 percent, to 4,900.88.

The day’s decline in stocks followed gains of more than 1 percent on each of the major indexes on Monday. The S&P 500 remains down 2.3 percent from its March 2 record high close.

All three indexes also posted losses for the month, with the Dow down 2 percent, S&P 500 down 1.7 percent and the Nasdaq down 1.3 percent.

For the first quarter, the Dow declined 0.3 percent, the S&P 500 gained 0.4 percent and the Nasdaq gained 3.5 percent.

On the deal front, Charter Communications Inc agreed to acquire Bright House Networks in a roughly $ 10 billion deal. Charter rose 5.3 percent to $ 193.11.

NYSE decliners outnumbered advancers 1,794 to 1,247,; on the Nasdaq, 1,649 issues fell and 1,090 advanced.

The S&P 500 posted 22 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 72 new highs and 42 new lows.

About 6.3 billion shares changed hands on U.S. exchanges, below the 6.7 billion daily March average, according to BATS Global Markets.

(Editing by Nick Zieminski and Christian Plumb)

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Lufthansa Admits to Knowing About Andreas Lubitz’s Past Depression – Gawker

Lufthansa Admits to Knowing About Andreas Lubitz's Past Depression

Lufthansa announced Tuesday that Andreas Lubitz—the co-pilot of the Germanwings flight that crashed into the French Alps last week, killing all 150 people on board—had previously informed the airline of a “serious depressive episode.”http://gawker.com/prosecutors-ge…

According to documents turned over to German prosecutors, Lubitz had told Lufthansa in 2009—in emails with the airline’s flight school to resume pilot training—that he had suffered from depressive episodes. Those emails, the New York Times reports, included medical records.

The company’s announcement today appears to square with a previous veiled statement made by the airline’s CEO Carsten Spohr at a press conference last week, in which he alluded to an interruption in Lubitz’s pilot training for unspecified reasons. Lufthansa operates Germanwings as a budget airline.

[Image via Getty]

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US consumer confidence surges in March – Reuters

(Reuters) – U.S. consumer confidence unexpectedly rebounded strongly in March, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes rose to 101.3 from an upwardly revised 98.8 in February. Economists were looking for a reading of 96.0, according to a Reuters poll.

The February figure was originally reported as 96.4.

(Reporting by Ryan Vlastelica; Editing by Chizu Nomiyama)

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Euro on track for worst quarter…ever – CNBC

The euro is seen clocking up its biggest quarterly decline at the end of March since its launch in 1999—and could fall even further over the coming months.

The currency, which is used by the 19 countries in the euro zone, continued to decline on Tuesday, reaching $ 1.0718. It has fallen over 11 percent against the U.S. dollar since the start of the year, putting it on track for its steepest-ever quarterly decline.

The currency’s losses have been driven by the launch of the European Central (ECB)’s 1 trillion euro ($ 1.2 billion) quantitative easing program in March. Asset purchases by the ECB increase the supply of euros in the monetary system, pushing the currency’s price lower.

Read MoreTrack the euro live with CNBC

But a weaker euro is not necessarily a bad thing. The central bank hopes that by keeping money “cheap” it will spur companies and individuals to spend and borrow more, spurring inflation from record lows. And a lower euro can also provide a boost to the region’s exporters, as it makes their products cheaper on the global market.

The euro has also been hit by expectations that the Federal Reserve could soon raise U.S. interest rates from record lows, which have pushed up the dollar.

Given the euro’s decline, pundits have been debating if—or when—it could reach parity with the U.S. dollar. This last occurred in 2002, and before that in 1999, at the launch of the euro.

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Elon Musk tweet about ‘new product line’ boosts Tesla shares – MarketWatch

SAN FRANCISCO (MarketWatch) — A tweet by Tesla Motors Inc. Chief Executive Elon Musk about a new product line the electric-car maker is about to unveil pushed the company's shares higher on Monday.

Tesla TSLA, +3.01%  shares had traded lower throughout the morning, but changed direction after the tweet:

A Tesla spokeswoman, when asked for details, would only say that the company will have "more information to share" in the coming weeks.

Musk has announced future Tesla products and features via Twitter before, most recently earlier this month when he tweeted about a software upgrade for the Model S.

He made an even bigger splash in October, when he set off weeks of speculation after tweeting about the Tesla "D and something else" — which turned out to be souped-up versions of Tesla's Model S sedan.

When Tesla reported fourth-quarter results in February, Musk said the company was working on a new battery for homes and businesses, with production expected to start in six months or so.

See also: Tesla wants you to have one of its batteries

Earlier this month, SolarCity Corp. SCTY, +0.80%  unveiled its microgrid service, which combines solar power and batteries. Musk is the chairman of SolarCity, and his cousin Lyndon Rive is SolarCity's chief executive.

Tesla knows the battery business, said Theodore O'Neill, an analyst with Ascendiant Capital Markets. A top-of-the line 85 kilowatt-hour Model S battery would be enough to "keep a standard house going for three days," assuming households consume 12 kwh to 30 kwh a day, he said.

Currently, solar-power customers in many states sell, rather than store, their surplus power back to the grid. Several utilities, however, have raised concerns about the practice, and Tesla could be positioning itself for the day when states either stop allowing it or allow utilities to pay less than the going retail rate for the excess power, making storage more attractive, he said.

See also: these are Tesla's main rivals in energy storage

Earlier Monday, Musk had tweeted about his trip to China over the weekend and losses were piling up for Tesla shares.

Musk told Chinese state media over the weekend that Tesla's TSLA, +3.01%  excess inventory in the country was caused by "speculators" who had ordered Model S sedans but never took delivery.

Musk was in China to participate in an international forum on Asian development issues. He had a couple of tweets about the trip:

The losses early Monday took Tesla shares to a 7% decline for the month so far. A monthly loss along these lines would be Tesla's worst 30-day performance since January, when its shares fell 8.5%.

Tesla shares have dropped 15% so far this year and 11% in the past 12 months. Over those same periods, the S&P 500 Index SPX, +1.22%  has gained 1.2% and 12%, respectively.

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Asia up on Wall Street rally and China hopes, euro sags on Greece – Economic Times

TOKYO: Asian stocks rose on Tuesday after a rally on Wall Street and steps by China to shore up its economy boosted risk appetite, while Greek debt worries again haunted the sagging euro.

Tracking overnight gains in US shares, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4 per cent. Japan’s Nikkei added 0.9 per cent and Australian shares rose 1.3 per cent.

The Dow and S&P 500 both climbed more than 1 per cent Monday with sentiment boosted by Chinese equities, which soared to a seven-year high on hopes for more infrastructure spending and monetary easing.

After unveiling details over the weekend for a modern “Silk Road” that could pump tens of billions of dollars into investment, China late on Monday announced steps to ease housing taxes and lending rules to prop up sliding house prices imperilling the world’s second largest economy.

“Tax cuts, reductions to down payments on second homes, along with further moves to requirement ratios have all been introduced to assist China’s slowing housing sector and will be a medium term positive in the global growth story,” Evan Lucas, market strategist at IG in Melbourne, said in a note to clients.

In currencies, the euro was down 0.1 per cent at $ 1.0824 , adding to an overnight loss of 0.5 per cent.

The common currency fell against the dollar on worries about whether Greece can secure aid before it runs out of cash in three weeks. Greece’s biggest creditor Germany demanded that it show more commitment to reform while Athens said it cannot make an “unconditional” agreement with lenders.

The dollar was little changed at 120.02 yen after surging from an overnight low of 119.105.

The Australian dollar found little support from prospects of more stimulus and monetary easing from China, Australia’s key trading partner.

The Aussie was little changed at $ 0.7656 after skidding more than one per cent overnight amid persistent expectations of further interest rate cuts by the Reserve Bank of Australia.

US crude extended losses as the Mar. 31 deadline loomed for Iran and six world powers negotiating a deal for Tehran’s nuclear programme. If a deal is reached to end Western sanctions, Iran would be able to ship more crude into an already saturated market.

US crude was down 0.3 per cent at $ 48.54 per barrel.

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Monday, March 30, 2015

Asia up on Wall St rally and China hopes, euro sags on Greece – Reuters

TOKYO (Reuters) – Asian stocks rose across the board on Tuesday after a rally on Wall Street and steps by China to shore up its economy boosted risk appetite, while Greek debt worries again haunted the sagging euro.

Spreadbetters expected European shares to pull back slightly after Monday’s rise, calling for Britain’s FTSE, Germany’s DAX and France’s CAC to open a touch lower.

Tracking overnight gains in U.S. stocks, MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.5 percent. The index was on track for a 4 percent gain this quarter.

Australian shares rose 0.9 percent. Bourses in South Korea, Hong Kong, Malaysia and Indonesia rose as well. Japan’s Nikkei bucked the trend and lost 0.2 percent.

The often volatile Shanghai Composite Index followed up Monday’s rally, scaling seven-year highs on hopes for more infrastructure spending and monetary easing. The index led its Asian peers with a 17 percent gain this quarter.

The Dow and S&P 500 both climbed more than 1 percent Monday with sentiment buoyed by robust Chinese equities.

After unveiling details over the weekend for a modern “Silk Road” that could pump tens of billions of dollars into investment, China late on Monday announced steps to ease housing taxes and lending rules to prop up sliding house prices that have threatened economic growth.

“Tax cuts, reductions to down payments on second homes, along with further moves to (reserve) requirement ratios have all been introduced to assist China’s slowing housing sector and will be a medium-term positive in the global growth story,” Evan Lucas, market strategist at IG in Melbourne, said in a note to clients.

Chinese central bank governor Zhou Xiaochuan’s recent warning that China needs to be vigilant for signs of deflation have also helped fuel hopes for more easing.

“We believe policymakers are increasingly concerned about weakening growth and inflation, and will deploy more monetary and fiscal easing measures in the coming weeks,” economists at HSBC said.

In currencies, the euro was down 0.4 percent at $ 1.0788, adding to an overnight loss of 0.5 percent. The euro looked to lose about 10 percent this quarter versus the dollar.

The common currency fell against the dollar on worries whether Greece can secure aid before it runs out of cash in three weeks. Germany, Greece’s biggest creditor, demanded that it show more commitment to reform while Athens said it cannot make an “unconditional” agreement with lenders.

The dollar was little changed at 120.20 yen after surging from an overnight low of 119.105. The greenback was poised for a modest 0.4 percent rise this quarter.

The Australian dollar found little support from prospects of more stimulus and monetary easing from China, Australia’s key trading partner.

The Aussie lost 0.4 percent to $ 0.7626 after skidding more than one percent overnight amid persistent expectations of further interest rate cuts by the Reserve Bank of Australia.

U.S. crude extended losses as the Mar. 31 deadline loomed for Iran and six world powers negotiating a deal for Tehran’s nuclear programme.

If agreement to end Western sanctions is reached OPEC-member Iran would be able to ship more crude into an already saturated market.

U.S. crude was down 1.3 percent at $ 48.06 per barrel.

(Editing by Richard Pullin)

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Biz Break: Brisbane biotech bought for $1.1 billion as boom barrels on – San Jose Mercury News

Today: The hot market for biotech mergers continues with the $ 1.1 billion purchase of Brisbane-based Hyperion Therapeutics, which wasn’t even the biggest deal of the day. Also: Tesla Motors gains after CEO Elon Musk teases a new offering.

The Lead: Hyperion Therapeutics sells for $ 1.1B as biotech boom continues

Silicon Valley’s biotechnology companies continue to command billions — and receive them — as large pharmaceutical companies look to add potential blockbuster drugs to their lineups, with Hyperion Therapeutics the latest to take advantage.

Brisbane-based Hyperion agreed to an offer from Irish drug company Horizon Pharma for $ 46 per share, leading to an all-cash purchase price of $ 1.1 billion for the company. The acquisition price is 7.6 percent higher than Hyperion’s closing price from Friday’s trading session, but substantially higher than the stock’s all-time high coming into this month: Shares had never cracked $ 33 before a sudden rise in the past month as analysts increased price targets and merger rumors surfaced.

Founded in 2006, Hyperion is one of a recently popular class of biotech companies that focus on rare diseases, with Hyperion’s two current drugs aimed at genetic disorders that keep sufferers from ridding naturally occurring ammonia from the body, which can cause myriad problems. The related disorders occur in 1 of about every 35,000 births, Hyperion says, and affect about 2,100 Americans.

Experts say that drug companies that focus on curing rare disorders avoid the scrutiny that can come with high pricing of drugs for more common diseases.

“They’re recreating the blockbuster,” WBB Securities analyst Steve Brozak told The Associated Press about such companies last week. “There’s more money, fewer patients and it’s 10 times easier to defend high prices to payers.”

Hyperion’s purchase is just one more in a string of big-money biotech deals in Silicon Valley and beyond this year — it is not even the biggest of the day nationwide, as San Diego’s Auspex Pharmaceuticals was purchased for $ 3.2 billion in cash by Israeli firm Teva Pharmaceutical. Locally, Sunnyvale-based Pharmacyclics has agreed to the largest deal of the year so far, a $ 21 billion acquisition by AbbVie, and even young startups have sold for more than $ 1 billion as they head toward IPOs at a record rate.

TheStreet writer Adam Feuerstein noted that acquisition activity in the sector has had its hottest start since 2009, and theorizes that these deals are occurring more because big pharmaceutical companies have drifted away from the type of research and development that young biotechs are accomplishing, but still need the fresh offerings to juice sales.

“In other words, Big Pharma is buying innovation and growth from biotech,” Feuerstein wrote Monday. “It’s a seller’s market.”

The potential for huge gains from these types of acquisitions, as well as the scrutiny that can result from the introduction of a big drug, are evident in the Bay Area’s largest public biopharmaceutical company, Gilead Sciences. The Foster City company bought Pharmasset for $ 11 billion in 2011 for its hepatitis C medicines, and developed them into blockbuster drugs that doubled Gilead’s revenues last year, but the $ 1,000-a-pill price tag created an uproar and the company is now facing competition that has forced it to drop the price in deals with large buyers.

Hyperion’s drugs target less prominent diseases, but have found big revenue gains since being approved by the Food and Drug Administration. After the company went public in 2012 for $ 10 a share with no revenues, it received its first FDA clearance in 2013 and brought in $ 42.2 million that year, then more than doubled that to $ 113.6 million in 2014.

“During the last two years, we have solidified our position in the orphan disease space and made significant progress in bringing life-changing medicines to people with urea cycle disorders,” Hyperion CEO Donald Santel said in a prepared statement Monday.

Hyperion, which had 80 full-time employees at the end of last year, also has a drug that treats the neurological effects of certain types of liver failure, which it says affects about 140,000 Americans. Horizon has already received guarantees that it will be able to buy more than 20 percent of Hyperion shares at the acquisition price, and hopes to close the deal by the end of the first half of 2015.

Hyperion shares gained 7.6 percent to $ 45.98 Monday, while Horizon jumped 18.2 percent to $ 25.78.

SV150 market report: Tesla Motors gains on anticipation for new product

Wall Street kicked off the week with strong gains Monday, as Tesla Motors had a strong day after CEO Elon Musk teased an upcoming product announcement.

Musk tweeted Monday that the Palo Alto electric car company plans to show off a new offering next month. ”Major new Tesla product line — not a car — will be unveiled” on April 30, Musk wrote on Twitter, after posting two other tweets from a trip to China, which may have boosted hopes on the company’s performance in that country. Speculation about Tesla’s new product focused on home battery storage, after Musk said in a February conference call that he planned to show off such a product in a month or two and get it into production in about six months. Tesla stock gained 3 percent to $ 190.57.

Apple shares jumped 2.5 percent to $ 126.37 after CEO Tim Cook took a strong stand against laws such as a recent one passed in Indiana. Gilead fell 0.3 percent to $ 100.69 after a ProPublica investigation showed that Medicare spending on hepatitis C drugs multiplied 10 times 2014 to $ 4.7 billion, with the Foster City company raking in about $ 3.7 billion of that total. Facebook declined 0.1 percent to $ 83.19 while moving into a fancy new building, and Netflix added 1.9 percent to $ 422.57 while adding a former Disney executive to its board. Nvidia gained 0.4 percent to $ 21.47 while reportedly planning some new gaming hardware, and Hewlett-Packard advanced 0.3 percent to $ 31.57 while showing off new enterprise software offerings. After big gains Friday amid reports of a possible merger, Intel and Altera sank back Monday, with Intel dropping 1.7 percent to $ 31.46, and Altera declining 3.5 percent to $ 42.82.

Up: Tesla, Apple, EA, GoPro, Cisco, Netflix, Oracle, Workday, Intuit, VMware, Juniper

Down: Intel, AMD, SunPower, LinkedIn

The SV150 index of Silicon Valley’s largest tech companies: Up 18.91, or 1.1 percent, to 1,745.16

The tech-heavy Nasdaq composite index: Up 56.22, or 1.15 percent, to 4,947.44

The blue chip Dow Jones industrial average: Up 263.65, or 1.49 percent, to 17,976.31

And the widely watched Standard & Poor’s 500 index: Up 25.22, or 1.22 percent, to 2,086.24

Sign up for the 60-Second Business Break newsletter at www.siliconvalley.com. Contact Jeremy C. Owens at 408-920-5876; follow him at Twitter.com/jowens510.

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Dow advances most in eight weeks amid corporate mergers – Chicago Tribune

NEW YORK — The Dow Jones industrial average posted its biggest advance in eight weeks as equities extended quarterly gains amid corporate mergers and optimism central banks will support global growth.

Chevron, ExxonMobil, and JPMorgan Chase added more than 2.3 percent as oil companies and banks rallied. Catamaran jumped 24 percent after UnitedHealth Group agreed to buy it. Horizon Pharma rose 18 percent after saying it will acquire Hyperion Therapeutics. A Standard & Poor’s index of homebuilders climbed after pending home sales in February rose more than forecast.

The Dow climbed 263.65 points, or 1.5 percent, to 17,976.31 at 4 p.m. in New York, its best gain since Feb. 3. The S&P 500 index advanced 1.2 percent to 2,086.24, headed for its longest streak of quarterly increases since 1998. With a 0.2 percent increase on Friday, the index completed its first back-to-back gain after 28 days, the longest drought since 1994. The Nasdaq composite index rose 1.2 percent.

“There was the China central bank comment about stimulus overnight, the economic news this morning was a little bit mixed, and it seems people are putting cash to work thinking maybe earnings are going to come in better than expected,” Larry Peruzzi, the Boston-based director of international trading at Cabrera Capital Markets, said by phone. “The biggest thing in today’s market is there’s no huge negative.”

Federal Reserve Chair Janet Yellen said on Friday that the central bank will probably raise rates this year, with subsequent increases taking place gradually, without following a predictable path. China’s central bank chief said the government can do more to support growth in the world’s second-largest economy.

First-quarter profits for S&P 500 companies are forecast to decline for the first time since 2009. Companies will see a contraction of 5.8 percent for the three-month period, according to economist estimates compiled by Bloomberg. Earnings growth forecasts for the quarter were positive as recently as January, the data show.

Consumer purchases rose less than projected in February, indicating the biggest part of the U.S. economy will find it hard to sustain momentum after the best quarter since 2006. Adjusted for inflation, spending declined for the first time in almost a year. Incomes climbed 0.4 percent in February for a second month, propelled by a jump in dividends.

A separate report showed more Americans than forecast signed contracts to purchase previously owned homes in February, indicating a pickup in the housing market ahead of the spring selling season. The index of pending sales increased to the highest since June 2013. An S&P gauge of homebuilder stocks added 1.5 percent to its highest since June 2007.

The U.S. economy grew at a slower pace in the fourth quarter than economists had estimated, a Commerce Department update showed on Friday.

Other reports this week may show the Institute for Supply Management’s manufacturing gauge slipped in March, while payrolls rose at a slower pace.

All ten primary groups in the S&P 500 advanced on Monday, after the benchmark last week fell the most since January, extending a monthly loss. About 5.8 billion shares traded hands on U.S. exchanges, about 14 percent below the three-month average.

Energy and financial companies paced today’s rally, rising at least 1.4 percent. Newfield Exploration, ExxonMobil and Phillips 66 gained at least 2.4 percent. JPMorgan Chase and Travelers climbed at least 2.3 percent to bolster the financial group.

The Chicago Board Options Exchange volatility index fell 3.7 percent to 14.51. The gauge, know as the VIX, jumped 16 percent last week, the most since January.

Catamaran jumped 24 percent after UnitedHealth’s OptumRx agreed to buy the provider of pharmacy benefit management services for about $ 12.8 billion. PBM competitor Express Scripts Holding added 3.7 percent, the most in more than three months. UnitedHealth advanced 2.5 percent to a record.

Horizon Pharma climbed 18 percent to an all-time high after agreeing to buy Hyperion Therapeutics for $ 1.1 billion to gain drugs to treat rare metabolic diseases. Hyperion added 7.6 percent.

Teva Pharmaceutical increased 0.9 percent after agreeing to buy Auspex Pharmaceuticals for about $ 3.5 billion in cash to gain drugs that curb tics and other movement disorders. Teva will begin a tender offer of $ 101 a share for Auspex, which rallied 42 percent.

DreamWorks Animation rose 6.6 percent to its highest since November after its “Home” film delivered $ 54 million in opening-weekend ticket sales, beating projections.

Analog Devices jumped 10 percent, the most since May 2009, after analysts at Barclays upgraded the stock to overweight from equalweight and set a target price of $ 70, 10 percent above where shares now trade.

Altera lost 3.5 percent after soaring 28 percent Friday following a report that Intel was in talks to buy the company. Morgan Stanley analyst Joseph Moore downgraded Altera to equalweight from overweight, while Macquarie Research analyst Deepon Nag cut shares to neutral from outperform. Intel slipped 1.7 percent, one of two Dow components that fell.

–With assistance from Inyoung Hwang in London.

Copyright © 2015, Chicago Tribune

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Elon Musk knows how to work Twitter – Quartz

Tesla CEO Elon Musk sent Twitter into overdrive (pun intended) today.  The hashtag #TeslaNewProductGuesses was active on the social network after Musk revealed that the company will unveil a new product at the end of April.

Tesla is not commenting on the product announcement, and also declined to comment to Quartz for this piece.

Our best guess? It is probably the battery that can be used to power a home, which Musk teased during last month's quarterly earnings call. At the time, he said: "We're trying to figure out a date to have the product unveiling, but it's probably in the next month or two months. And it's really great; I'm really excited about it."

Musk has a Steve Jobs-ian ability to build hype for his products, and for his company. And indeed, his tweet appears to have delivered a boost to the Tesla share price. The stock is up by as much as 3% today, and before the tweet, was trading in negative territory.

Just a few days ago, Musk denied any intention to goose the stock price with his tweets.

He is right of course. But just because it's not intentional, that doesn't mean his tweets aren't having an effect. Musk has tweeted about Tesla at least three times during normal market hours in the US this year.

  • Today's tweet coincided with a rise of up to 3% in the stock price.
  • On the day of the aforementioned denial of the notion that his tweets are designed to affect the stock price, March 16, the stock increased 3.7%.
  • A January 29 tweet about over-the-air updates that would make Tesla's souped-up Model S P85D even faster. On that day, Tesla shares increased 2.9%.

We are not suggesting anything untoward here—Twitter is a completely public forum, after all, and one that any investor worth his or her salt is paying attention to. Nor are we saying there's a definite causal link between Musk's tweets and the share price reaction on those days (lots of other company specific and macro factors could have affected things). And not all of his tweets have helped the stock. For example, Musk tweeted on March 8, a Sunday, to firmly deny delays at the Gigafactory, the $ 5 billion battery plant being built in Nevada. The next day, Tesla stock still fell 1.5%.

So the fact that Musk's tweets have on more than one occasion coincided with days when the stock price was strong probably reflects, more than anything, the fact that he likes to break news about his company on Twitter. Which—aside from his musings on artificial intelligence, the Hyperloop, and SpaceX—means he is probably worth following.

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Pending Sales of U.S. Homes Rose More Than Forecast in February – Bloomberg

(Bloomberg) — More Americans than forecast signed contracts to purchase previously owned homes in February, indicating a pickup in the housing market ahead of the spring selling season.

The index of pending sales increased 3.1 percent to 106.9, the highest since June 2013, after a 1.2 percent gain the prior month that was smaller than initially estimated, figures from the National Association of Realtors showed Monday in Washington. The median forecast of 35 economists surveyed by Bloomberg called for a 0.3 percent rise.

Employment gains and rising rents encouraged buyers to take advantage of cheap borrowing costs in February even as some contended with frigid weather. Stronger wage growth and an increase in the number of homes for sale would help provide an additional boost for the market this spring, when buying interest typically heats up.

"Pending sales showed solid gains last month, driven by a steadily improving labor market, mortgage rates hovering around 4 percent and the likelihood of more renters looking to hedge against increasing rents," Lawrence Yun, the NAR's chief economist, said in a statement. "These factors bode well for the prospect of an uptick in sales in coming months."

Estimates in the Bloomberg survey ranged from a 5 percent decline to a 2 percent increase. The Realtors' group revised the January data from a previously reported 1.7 percent increase.

Two of four regions saw an increase, reflecting an 11.6 percent jump in the Midwest and a 6.6 percent gain in the West, the report showed. Pending sales fell 2.3 percent in the Northeast and 1.4 percent in South.

The index increased 12 percent on an unadjusted basis versus a year earlier, after a 6.1 percent gain in the prior 12-month period. It was projected to climb 8.7 percent, according to the Bloomberg survey median.

A reading of 100 in the pending sales index corresponds to the average level of contract activity in 2001, or "historically healthy" home-buying traffic, according to the NAR.

Economists consider pending sales a leading indicator because it tracks contract signings, as opposed to purchases of existing homes, which are tabulated when a deal closes, typically a month or two later.

The latter makes up more than 90 percent of the housing market. Re-sales rose 1.2 percent in February to a 4.88 million annual rate, the NAR said March 23.

A report from the Commerce Department on March 24 showed new-home sales, which account for about 7 percent of the residential market, unexpectedly rose in February to a seven-year high. New-home sales are also tabulated when contracts are signed, indicating the market strengthened during the month.

To contact the reporter on this story: Nina Glinski in Washington at nglinski@bloomberg.net

To contact the editors responsible for this story: Carlos Torres at ctorres2@bloomberg.net Vince Golle

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U.S. Equities Extend Quarterly Advance Amid Corporate Mergers – Bloomberg

(Bloomberg) — The Dow Jones Industrial Average posted its biggest advance in eight weeks as equities extended quarterly gains amid corporate mergers and optimism central banks will support global growth.

Exxon Mobil Corp. and JPMorgan Chase & Co. added more than 2 percent as oil companies and banks rallied. Catamaran Corp. jumped 24 percent after UnitedHealth Group Inc. agreed to buy it. Horizon Pharma Plc rose 15 percent after saying it will acquire Hyperion Therapeutics Inc. A Standard & Poor's index of homebuilders climbed after pending home sales in February rose more than forecast.

The Dow climbed 286.04 points, or 1.6 percent, to 17,998.70 at 1:09 p.m. in New York, on track for its best gain since Feb. 3. The S&P 500 Index advanced 1.2 percent to 2,086.45. The gauge is up 1.3 percent in the first quarter, maintaining its longest streak of quarterly gains since 1998. The Nasdaq Composite Index increased 1 percent.

"Stocks are being driven in the short-term by the potential for Chinese quantitative easing that they hinted at over the weekend, as well as the mergers and buyouts happening in the equity market," Andrew Brenner, the head of international fixed income for National Alliance Capital Markets, said by phone.

Federal Reserve Chair Janet Yellen said Friday that the central bank will probably raise rates this year, with subsequent increases taking place gradually, without following a predictable path. China's central bank chief said the government can do more to support growth in the world's second-largest economy.

Data Watch

Consumer purchases rose less than projected in February, indicating the biggest part of the U.S. economy will find it hard to sustain momentum after the best quarter since 2006. Adjusted for inflation, spending declined for the first time in almost a year. Incomes climbed 0.4 percent in February for a second month, propelled by a jump in dividends.

More Americans than forecast signed contracts to purchase previously owned homes in February, indicating a pickup in the housing market ahead of the spring selling season. The index of pending sales increased to the highest since June 2013. An S&P gauge of homebuilder stocks added 1.8 percent, with all 11 members advancing, to its highest since June 2007.

The U.S. economy grew at a slower pace in the fourth quarter than economists had estimated, a Commerce Department update showed on Friday.

Other reports this week may show the Institute for Supply Management's manufacturing gauge slipped in March, while payrolls rose at a slower pace.

Broad Rally

All 10 primary groups in the S&P 500 advanced Monday, after the benchmark last week fell the most since January, extending a monthly loss.

Energy and financial companies paced today's rally, rising at least 1.4 percent. Valero Energy Corp., Exxon Mobil and Phillips 66 gained at least 2 percent. JPMorgan Chase and PNC Financial Service Group Inc. climbed more than 2.4 percent to bolster the financial group.

Catamaran jumped 24 percent after UnitedHealth's OptumRx agreed to buy the provider of pharmacy benefit management services for about $ 12.8 billion. PBM competitor Express Scripts Holding Co. added 3.5 percent. UnitedHealth advanced 2.6 percent.

Horizon Pharma climbed 15 percent to an all-time high after agreeing to buy Hyperion Therapeutics for $ 1.1 billion to gain drugs to treat rare metabolic diseases. Hyperion rose 7.8 percent to a record.

Teva Pharmaceutical increased 2.4 percent to a five-year high after agreeing to buy Auspex Pharmaceuticals Inc. for about $ 3.5 billion in cash to gain drugs that curb tics and other movement disorders. Teva will begin a tender offer of $ 101 a share for Auspex, which rallied 42 percent.

Altera Retreats

DreamWorks Animation SKG Inc. rose 5.4 percent to its highest since November after its "Home" film delivered $ 54 million in opening-weekend ticket sales, beating projections.

Analog Devices Inc. jumped 9.8 percent to its highest in more than 14 years after analysts at Barclays Plc upgraded the stock to overweight from equalweight and set a target price of $ 70, 10 percent above where shares now trade.

Altera Corp. lost 4 percent, after soaring 28 percent Friday following a report that Intel Corp. was in talks to buy the company. Morgan Stanley analyst Joseph Moore downgraded Altera to equalweight from overweight, while Macquarie Research analyst Deepon Nag cut shares to neutral from outperform. Intel slipped 1.4 percent, the only Dow component trading lower.

The Chicago Board Options Exchange Volatility Index fell 5.6 percent to 14.22. The gauge, know as the VIX, jumped 16 percent last week, the most since January.

To contact the reporter on this story: Oliver Renick in New York at orenick2@bloomberg.net

To contact the editors responsible for this story: Cecile Vannucci at cvannucci1@bloomberg.net John Shipman, Namitha Jagadeesh

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UnitedHealth to Buy Pharmacy Benefits Manager Catamaran – ABC News

The nation’s largest health insurer, UnitedHealth, has muscled up in its fight against rising specialty drug costs, spending more than $ 12 billion to buy pharmacy benefits manager Catamaran Corp.

Pharmacy benefits managers, or PBMs, process claims and run prescription drug plans for insurers, employers and other customers. They help negotiate prices customers and insurers pay for drugs and are seen as a key component in the push to contain rising costs from specialty drugs. These are complex medicines that often represent treatment breakthroughs but come with much higher prices than older, more traditional medicines.

UnitedHealth Group Inc. already has a PBM business named OptumRx that fills about 600 million prescriptions annually. Catamaran expects to fill 400 million this year.

UnitedHealth said Monday that it will spend $ 61.50 in cash on each share of Catamaran in a deal it expects to close during the fourth quarter. That’s a 27 percent premium to Catamaran’s closing price Friday, and shares of the pharmacy benefits manager are climbing sharply in early morning trading.

Catamaran, based in Schaumburg, Illinois, had about 207.5 million shares outstanding at the end of January, which puts the deal price at roughly $ 12.76 billion.

The companies said their businesses both have “distinctive, rapidly growing specialty pharmacy services businesses” for a segment of the market that is expected to quadruple from an estimated $ 100 billion in revenues last year to $ 400 billion by 2020.

The nation’s largest PBM, Express Scripts Holding Co., has long complained about the soaring costs that come from specialty drugs, especially newer hepatitis C treatments like Gilead Sciences Inc.’s Sovaldi, which comes with higher cure rates and a per-pill price that can run as high as $ 1,000.

Shares of Catamaran rose 26 percent, or $ 12.67, to $ 60.99 more than two hours before markets opened. UnitedHealth, based in Minneapolis, saw its shares climb 2.6 percent, or $ 3.14, to $ 121.15.

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America’s Economy in 2015 – Lower Unemployment and Inflation, More Spending – Modern Readers

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America's Economy in 2015 – Lower Unemployment and Inflation, More SpendingA new report from the National Association for Business Economics points to improved prospects in the U.S. employment market, a lower inflation rate, and additional consumer spending growth in the 2015 calendar year, as compared to the organization's December 2014 report.

"Healthier consumer spending, housing investment and government spending growth are expected to make outsized contributions to the projected acceleration in overall economic activity. Accordingly, recent labor market strength is expected to continue," said NABE president John Silvia, who is also Wells Fargo's chief economist.  The group also cited a few other variables behind March's improved prospects, such as a stronger greenback, low oil prices, and improvements in the housing space.

Crude oil prices, which went down from $ 98 per barrel in December 2013 to $ 59 in December 2014, are forecasted to average $ 61 by the end of 2015 and $ 69 by the end of next year.  This is in contrast to December's report, which had a forecasted oil price of $ 85 per barrel by December 2015.  There were, however, some potential headwinds pointed out in NABE's March report.

The headwinds, according to the business economics group, include a larger U.S. trade deficit this year, reduced corporate profit growth forecasts for calendar 2015, and lower hourly compensation as compared to the December report.  Regarding the U.S. Federal Reserve's inevitable raising of interest rates from near-zero levels, 88 percent of NABE's prognosticators said that the Fed may start hiking rates in the June or September 2015 quarter.



LOL of the day:

It’s Official – Better Call Saul is Already a Smash Hit!!

Viral Video of the Day – February 13

Unbelievable Martial Arts Staff Skills…..!!

Did One Direction’s Louis Tomlinson Just Admit He’s Gay?

Will Ferrell’s Celebrity Jeopardy Parody is Simply Hilarious….!!!

Man Mocks Slipping Dog, Karma Bites Back…Pure Genius…..!!!

Did You Just Ski Past a…Lion? Not Your Average Day on the Slopes…!

He’s Back For More…and Getting More Creative….!!! LOL! :-)

Confuse a Cat…Add a Baby…..!

Meanwhile, During Rush Hour….

Every Crab’s Worst Nightmare….Mine Too!!!!!!

12-Year-Old Girl Arrested for Poisoning Mom over Confiscated iPhone

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