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GE shares jump after report says Apollo is considering a bid for its huge jet-leasing business (GE)

Fri, 01/04/2019 - 5:11pm

Shares of General Electric jumped 4% in after-hours trading on Friday after a report said Apollo was considering making a bid for GE's jet-leasing business, GE Capital Aviation Services.

The asset manager is reportedly talking to bankers about lining up debt to buy all or part of the unit, Bloomberg News reported. The deal could be worth up to $40 billion, according to Bloomberg citing people familiar with the matter.

After plummeting in 2018, GE shares rose 7% on the first day of trading in 2019. The industrial conglomerate's stock price is down 54% in one year.

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NOW WATCH: The equity chief at $6.3 trillion BlackRock weighs in on the trade war, a possible recession, and offers her best investing advice for a tricky 2019 landscape

The biggest healthcare investor conference starts on Monday — here are the top 5 areas we're keeping an eye on

Fri, 01/04/2019 - 4:21pm

Starting Monday, thousands of pharmaceutical industry executives, investors, bankers, and analysts will swarm into San Francisco for the J.P. Morgan Healthcare Conference.

Now in its 37th year, the conference has ballooned from a small event with 150 attendees that was essentially the "birth of biotech," to an event attended by everyone from the biggest pharma company to the smallest biotech. JPMorgan said more than 485 companies are scheduled to present this year.

It's a spot for these companies to meet with investors and each other, and can be the starting point for takeovers or other deals. 

It's also a place where more deals — maybe even on the scale of Thursday's $74 billion merger between Bristol-Myers Squibb and Celgene — could get announced. 

From confronting the threat of technology giants' healthcare advances to covering the cost of one-time treatments, here are some of the key topics we'll be asking about this week. 

We'll be sending out our best stories from the week in Dispensed, our weekly dispatch of pharma, biotech, and healthcare news. Sign up here.

Who’s next to merge?

2018 saw a number of mega-deals, including the $77 billion Takeda-Shire merger. Now with the BMS-Celgene deal in place, the healthcare industry is wondering who might be next to pair up.

"With large caps, generally, falling under pressure the last few years, one has to acknowledge the potential for additional consolidation of profitable companies," Baird Equity Research biotech analyst Brian Skorney wrote in a note Thursday. 

Alternatively, Celgene could find another dance partner in a counter-bid.

Alethia Young, an analyst at Cantor Fitzgerald remarked in a note Thursday that it's possible others go in to big on Celgene — specifically Amgen and Johnson & Johnson. That's in large part because of the two companies focus on hematology. Joining up with either of those two companies could create more synergies than the company has with BMS. 



How will we pay for seven-figure drugs? What about other costly treatments?

The issue of paying for medications is now a constant conversation for the drug industry, with prices continuing to go up even after political pressure in 2018. We'll definitely be keeping an eye on pharma's 2019 plans.

But a new wrinkle that's quickly coming into focus: How are we going to pay for one-time treatments?

Already, treatments like cell therapy for cancer treatments and a gene therapy for a hereditary form of blindness have tested the waters.

But more are in the works. That includes Novartis' gene therapy for spinal muscular atrophy, a rare genetic condition that affects muscle movement in children and is the leading genetic cause of mortality in infants that could be approved in the US by as early as May 2019. When that happens, Novartis said it would be cost-effective at a price of between $4-5 million

It might take some new payment arrangements to get health insurers on board to cover the cost of treatment, such as paying in installments over a set amount of time. What that looks like and who takes the lead on that will be a big question that should get answered in 2019. 



How has the pharma-payer power dynamic shifted?

In 2018, two massive healthcare deals closed, redrawing the lines around what defines a healthcare company: 

The health insurer Cigna combined with Express Scripts, which manages pharmacy benefits. And CVS Health, a big pharmacy chain that also owns a drug benefits business, acquired the health insurer Aetna.

We'll find out a lot more this year about the strategies of the combined companies. Both new firms will be looking for places to cut costs, as well as seeking to gain more control over how patients access healthcare. It's happening at a time when new medications are getting approved that challenge the way we pay for treatments.

It remains to be seen how the two newly formed healthcare companies wield their new negotiating power, and how drugmakers will respond to that increased pressure. 



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Stocks soar after a trifecta of good news about jobs, the Fed, and Trump's trade war

Fri, 01/04/2019 - 4:02pm

  • Stocks soared Friday after the release of a strong US jobs report.
  • US equities extended their gains after Federal Reserve Chairman Jerome Powell indicated the central bank would pay attention to the market's concerns.
  • Earlier Friday, the US and China announced they would meet Monday in Beijing to work toward a trade deal.
  • Apple shares bounced back a bit after Thursday's steep slide.
  • Watch stocks trade live.

Stocks soared Friday after a blockbuster jobs report and comments from Federal Reserve Chairman Jerome Powell sent traders scrambling back into US equities.

The Dow Jones Industrial Average was up 744 points, or 3.3%, as shares bounced back following Thursday's steep slide. The S&P 500 and the Nasdaq Composite were higher by 3.4% and 4.3%.

US equities got an overnight boost after the US and China agreed to meet Monday and Tuesday in Beijing to work toward a trade deal. Those gains carried over into Friday morning's December US jobs report. The Labor Department said the US economy added 312,000 nonfarm jobs and the unemployment rate jumped to 3.9%. Average hourly earnings climbed 0.4% last month and at a 3.2% annual rate for their best gains since 2009.

"We expect the December employment report to remind markets that the US growth outlook remains stable despite financial market volatility," said Lewis Alexander, an analyst at Nomura.

Stocks continued to build momentum early in the US session after Powell indicated the central bank would take into account the market's concerns.

All 30 Dow components were trading higher, with Intel (+5.9%) leading the way. Apple (+3.9%) bounced back after a sales warning out late Wednesday sent shares cratering by 10% on Thursday.

Elsewhere, the industrial giants Caterpillar (+5%) and Boeing (+4.9%) rebounded on signs the US economy may not be slowing down as feared. Aside from the strong jobs report, the December reading of Markit US Services PMI printed 54.4, topping the 53.4 that was expected by analysts surveyed by Bloomberg.

Treasury yields soared on the positive news, with the benchmark 10-year yield up 11 basis points at 2.66%. Earlier, it had touched a near one-year low of 2.54%.

The US dollar index rallied to a high of 96.60 following the strong jobs number but plunged back to the flat line near 96.30 after Powell began to speak.

On the commodities front, West Texas Intermediate crude oil spiked 2.8% to near $48.20 a barrel.

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NOW WATCH: The equity chief at $6.3 trillion BlackRock weighs in on the trade war, a possible recession, and offers her best investing advice for a tricky 2019 landscape

Trump says Apple is 'going to be fine' despite bombshell earnings miss, incorrectly claims Apple stock has gone up 'hundreds of percent' since his election

Fri, 01/04/2019 - 3:40pm

  • President Donald Trump downplayed Apple's recent announcement that revenue was weaker than expected for the holiday quarter.
  • Trump also seemed to blame Apple's revenue shortfall on the iPhone makers decision to manufacture their products in China.
  • But according to Apple CEO Tim Cook, the real reason was a slowdown in Chinese retails sales that he blamed in part by Trump's trade war with Beijing.
  • Trump also claimed Apple's stock is up "hundreds of percent since I'm president." It's actually only up around 30% since the 2016 election.

President Donald Trump on Friday downplayed Apple's recent revenue woes during a press conference at the White House.

When asked about the tech giant's shock announcement that revenue for the holiday quarter came in lower than expected, Trump pointed to Apple's stock price increase since the 2016 election as evidence that the company is doing just fine.

"They've gone up a lot, they've gone up hundreds of percent since I'm president," Trump said. "Apple was at a number that was incredible and they're going to be fine. Apple is a great company."

Trump also seemed to suggest that the reason for Apple's recent misstep was the location of their manufacturing plants.

"Don't forget this Apple makes their product in China," Trump said. "I told Tim Cook, who is a friend of mine, who I like a lot: 'Make your product in the United States, build those big, beautiful plants that go on for miles it seems, build those plants in the United States.'"

But Apple said its revenue miss in China was not due to the production side, but rather the sales side, since Chinese consumers are not buying enough iPhones.

According to a letter from Cook to shareholders on Wednesday, the company expects to report revenue of $84 billion for their first fiscal quarter, which ended in December. The original projection for the quarter was between $89 billion and $93 billion.

Read more: Apple's shock warning bolsters one of Trump's biggest arguments for the US-China trade war»

In the letter, Cook blamed a variety of factors for the revenue shortfall, but placed a significant amount of the responsibility on the recent economic slowdown in China. According to the Apple CEO, the slowdown was exacerbated by Trump's trade war with Beijing.

"And what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy," Cook said in an interview with CNBC. "So we saw as the quarter went on things like traffic in our retail stores, traffic in our channel partner stores, the reports of the smartphone industry contracting, particularly bad in November. I haven't seen a December number yet, but I'd bet it would not be good either."

The weakness also made Trump's claim false that Apple has gained "hundreds of percent" since the election.

Apple's share price did increase by roughly 110% from the day after the 2016 election to its all-time high on October 3. But the stock has tumbled since then and the company has now gained only 28% between November 8, 2016 and Thursday's closing price.

SEE ALSO: Trump says the Treasury is taking in 'MANY billions of dollars' from the tariffs on China. The only problem is that US companies are paying the price.

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NOW WATCH: Anthony Scaramucci claims Trump isn't a nationalist: 'He likes saying that because it irks these intellectual elitists'

11 books Wall Streeters think everyone should read

Fri, 01/04/2019 - 2:15pm

Need a new page-turner?

We've got you covered.

We polled our Rising Stars of Wall Street for the books they swear by for wisdom, business strategy, and career inspiration.

Here are 11 recommendations we received.

Subscribe to read our full list of the Rising Stars of Wall Street shaking up investing, trading, and dealmaking »

Additional reporting by Meghan Morris.

"Bad Blood: Secrets and Lies in a Silicon Valley Startup" by John Carreyrou

Rising Star: Katherine Wood, private-equity investor, TPG

"Theranos founder Elizabeth Holmes was a few years ahead of me at Stanford. It's one of the greatest diligence misses of all time. As you think about that as investor, there are a lot of lessons to be learned."

Buy it here.



"A Journal for Jordan: A Story of Love and Honor" by Dana Canedy

Rising Star: Anna Ashurov, vice president of investment banking, Goldman Sachs

"Because I have children, it really resonated with me. The book is basically a journal that a man wrote for his son while he was in the military, and he ended up dying in Iraq. He left this journal for his son to help him live his life; it offers him lessons for his life as he grows up.

"Reading takes you away from your day-to-day, and it gives you the ability to be in a different environment or setting and lets you be creative a little bit."

Buy it here. 



"Liar's Poker" by Michael Lewis

Rising Star: Tian Zeng, senior credit-index trader, Deutsche Bank

"I am a little biased because I started my career at Citigroup, which is formerly Salomon Brothers. I also recommend 'Panic!' by Michael Lewis, and I generally like all the 'Market Wizards' series, which are helpful in knowing what fits your trading style and what doesn't."

Buy it here.



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'In our early days, we were really hustlers': The founder of a $75 million crypto fund shares his best advice for aspiring entrepreneurs

Fri, 01/04/2019 - 2:13pm

  • Kyle Samani, a cofounder and managing partner of the crypto fund Multicoin Capital who was recently named to Forbes' "30 Under 30" finance list, shared the story of his entrepreneurial journey and gave some advice to aspiring startup founders.
  • "Find your passion, and figure out how to do that 20 hours per day," he said.

Sometimes failure doesn't have to be devastating — it might lead to a breakthrough moment. That describes Kyle Samani's journey to becoming a technology entrepreneur.

Samani, 28, is a cofounder and managing partner of Multicoin Capital, a fund based in Austin, Texas, that exclusively invests in the crypto space. He was also recently named to Forbes' "30 Under 30" finance list.

Samani started programming at age 11, but he didn't think he was born to be an entrepreneur. He went to New York University to study finance and thought he would climb the corporate ladder on Wall Street. But after college, he realized his passion was really in high-growth technology businesses and startups.

In 2013, Samani cofounded his first company, Pristine, which built Google Glass software for surgeons. Though Google Glass was not a well-received consumer product, it was an interesting tool for certain types of workers, Samani said.

Despite raising over $5 million in venture capital and hiring about 30 employees, Samani ended up finding a new strategy for Pristine after Google halted consumer sales of Google Glass in 2015.

In March 2016, Samani stumbled upon Ethereum, which opened the next chapter in his life and eventually led him to the world of crypto investment. Samani said he was drawn to Ethereum because of its open-source platform.

"I felt the pain of platform risk when Google literally pulled the rug out from under me," he said. The idea of having an open platform where this couldn't happen was appealing to him.

He spent hours learning about cryptocurrency and launched Multicoin Capital in August 2017.

"In our early days, we were really hustlers," Samani said.

"When we were raising early capital, we had no brand, no track record, and no operational infrastructure," he added. "We reached out to everyone in our networks, our friends, our families, our friends' friends, and the network of other entrepreneurs."

Multicoin Capital has grown fast since then. The crypto fund now has $75 million in assets under management and is backed by mainstream investors like Marc Andreessen, the Andreessen Horowitz partner, and David Sacks, the former PayPal exec and Yammer CEO.

Here's Samani's best advice for aspiring entrepreneurs:

Find your passion and follow it.

To Samani, passion is the thread running through his entrepreneurial journey and supporting his working 15 to 20 hours a day.

"Follow your passions, even if starting a company is grueling and hard," he said. "There are going to be days that you feel everything is going wrong. The way you will make it through this is by fixating on what you are really, truly passionate about. So, find your passion, and figure out how to do that 20 hours per day."

Don't be afraid to ask for help.

"People in the entrepreneur world come from all different majors. If you need help with meeting investors, thinking about financial modeling, and recruiting, just ask these people. Even if they are not the right person to help you, they will probably know somebody who is."

Be thankful and gracious to the people around you.

"The entrepreneur community today is so robust and helpful. Reach out to make those people help you, and then return the favor as hard as you can. Sometimes you won't be able to return a favor, but at the very least reach out and let them know you're grateful. I just considered it as my personal mandate to pay it forward. I cannot repay a lot of help, so I pay it forward to the next batch of entrepreneurs. Be thankful, and let them know you are appreciative, and pass it forward."

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NOW WATCH: The legendary economist who predicted the housing crisis says the US will win the trade war

We asked some of the finance stars in Forbes 30 under 30 to share their best career advice — here's what they had to say

Fri, 01/04/2019 - 2:10pm

Forbes recently released its 30 under 30 list for finance, highlighting a new crop of leaders shaking up Wall Street. Whether closing multibillion-dollar deals, inventing new financial technologies, or leading the future of crypto, they're already making an impact despite their young age. 

Business Insider asked these finance superstars to share their best career advice for the young professionals. Here's what they had to say.

Charlie Javice, 26, founder of Frank.

The 26-year-old University of Pennsylvania grad is trying to improve the $1.5 trillion student loan market by making the application process faster and easier. To date, the startup has helped 300,000 students receive roughly $7 billion in financial aid. Here's Javice's advice for young professionals just staring out in their careers.

My first advice is to show up. Many people today underestimate the power of showing up. When you're in a job, you come in an hour before your boss and leave an hour after your boss. Just by being there, you're learning. Even if you don't love it. When you transfer from being a student to becoming employed, it's really hard to lose some of that freedom and work in a structured environment. So the most important thing is to show up and listen, and be there to absorb knowledge. People are investing in you and they can teach you.

You should also always ask yourself the question “Why?” And I break it down into three types of whys. One is “Why am I the best for this job?” If you can't answer that, you should probably not be doing what you're doing. Do something that you can be amazing at and be in the top 1% of performers. Because if not, you're wasting your talent.

The other is “Why am I different than other applicants?” And this is something that's super important, because the difference is oftentimes better than being the best of something. So if you can distinguish yourself, be different and have a different approach and understand why you are different — you can really explain your value add and understand where you're going in your career.

Then the last one — which is really a mental health check — is “Why do I want to do this?” If you're in a position that you can invest in yourself when you're out of school, you should probably take the hit and take a little bit less salary, to have a better reason than money to pursue something.

Erica Dorfman, 29, head of Finance & Operations at Tally Technologies.

Dorfman is in charge of strategy, liquidity and financing at Tally, which offers an automated app that helps users manage their credit card debts. Some of her responsibilities include strategic planning, liquidity management and loan servicing. Prior to Tally, she co-led the capital markets operations at SoFi.

Dorfman has a background in fin tech, investment banking, and private equity. She started her career at JPMorgan and then moved over to BDT Capital Partners.

The best advice I can give is that you should find a company and a team that you're excited to work for — and one that's excited to have you on the team. Once you're there, try to get as much feedback as you can. Because you really can only go so far by yourself. So, the benefit of having a great team and having a strong relationship with them is that you can get as much help as you can to develop as a professional.

Katherine Relle, 29, is a portfolio manager in the private equity group at JPMorgan.

Relle is a portfolio manager in the private equity group at JPMorgan. She also chairs the firm’s mentoring program, called NextGen, which fosters networking opportunities for early business professionals. Here's her advice. 

Set goals and review them often. Be opportunistic and flexible. If your goal isn’t going in the right direction, be flexible and look for other opportunities. Sometimes, people seem to have a one-track mind on a certain goal. If you see something that could align well or create a different take on what that goal is, then it worth exploring further.

Read more: We asked some of the top young healthcare entrepreneurs in America for their advice — here's what they said

Look at the resources around you and take full advantage of them. For example, I see a lot of people go to large firms after they graduate from the college. They offer so many professional development opportunities, like training that's free to attend and toastmasters where people practice how to speak. Take full advantage of these opportunities and continue to learn early on in your career. 

Kyle Samani, 28, managing partner and cofounder of Multicoin Capital.

Kyle Samani is the co-founder and managing partner of Multicoin Capital, an Austin-based hedge fund that invests exclusively in the crypto space. The crypto fund has $75 million assets under management and is backed by investors including Andreessen Horowitz's partner Marc Andreessen, and former PayPal executive David Sacks. Prior to Multicoin Capital, Samani co-founded his first company, Pristine, which built Google Glass software for surgeons.

Follow your passions, even if starting a company is grueling and hard. There are going to be days that you feel everything is going wrong. The way you will make it through this is by fixating on what you are really truly passionate about. So, find your passion and figure out how to do that 20 hours per day.

Michelle Arbov, 28, Vice President of M&A at IAC.

Michelle Arbov, age 28, is a rising star at IAC, a $15 billion internet conglomerate founded by media mogul Barry Diller. She joined the company three years ago as the associate director on the merger and acquisition team and has been promoted rapidly.  Now, as the vice president of M&A at IAC, Arbov leads the company’s efforts in corporate development and financing.

Constantly ask questions. I think some people think that they need to know the answers when they speak. But I think asking questions and showing that you want to learn and want to grow is important, especially as you want to accelerate your career. Never just do your job. Try to make the person's life who you're working for easier. By having that mentality, you're able to learn more and take on more than you thought you would. 

Join the company that's aligned with your ambitions. Culture is a huge factor in choosing the right place to work. An example of a great culture is one that values hard work and lets you take on as much as you can if you raise your hand — as long as you deliver.

Always ask for feedback so you can constantly make yourself better in your role — and take on more.  

Loek Janssen, 29, cofounder and CTO of Nova Credit.

Janssen emigrated to the US from the Netherlands five years ago to pursue a master's degree in Computational Mathematics & Engineering at Stanford. The brainchild of Janssen and two Stanford classmates, Nova aims to solve a problem the founders encountered: the difficulty in transferring personal credit histories from their home countries to the US. So they decided to invent an international credit passport system that allows people's data to follow them from country to country. 

Nova Credit was started as a Stanford graduate research project, but it's gained rapid adoption since then. Now, the startup has raised $20 million to-date and is backed by investors like General Catalyst and Index Ventures.

There is an opportunity here to do good to help immigrants who are currently being rejected by the system. By doing good you also help the American economy. Immigrants who want to work have a good track record and income — but they have been rejected by the financial system purely because that is how we have been doing it for many decades, and that is something we have to change. So open your eyes — there are people that need help and market opportunities. You are missing out. 

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A 28-year-old M&A rising star at a $15 billion media company gives her 3 best pieces of career advice

Fri, 01/04/2019 - 2:09pm

  • Michelle Arbov, 28, is the vice president of mergers and acquisitions at holding company IAC.
  • She helped lead a series of high-profile acquisitions, including IAC's purchase of Angie's List for over $500 million, and played a key role in scaling its HomeAdvisor business.
  • Arbov was named this year to Forbes' 30 under 30 list for finance. Business Insider recently asked her to share her best career advice for other young professionals.

Michelle Arbov, 28, is a rising star at IAC, a $15 billion internet conglomerate founded by media mogul Barry Diller.

She joined the company three years ago as the associate director on the mergers and acquisitions team and has been promoted rapidly. Now, as the vice president of M&A, Arbov leads the company's efforts in corporate development and financing. She was recently named to Forbes' 30 under 30 list for finance.

IAC, whose holdings include widely recognized brands such as Vimeo, Tinder, and Investopedia, is known for its aggressive acquisition strategy. Arbov has handled a slew of high-profile deals and has been instrumental in scaling IAC's pillar business in the digital-home-services marketplace.

A notable example is her work on IAC's $500 million purchase of home-services website Angie's List in 2017. This led to Angie's List's merger with IAC's reviews site HomeAdvisor, which created ANGI Homeservices. That company went public in October 2017.

During her three-year stint at IAC, Arbov has also led other prominent deals, including the acquisition of home-improvement sites HomeStars and MyHammer, as well as ANGI's recent purchase of household-services company Handy.

Before her role at IAC, she worked at Goldman Sachs and Och-Ziff Capital Management, a hedge-fund manager. She shared her career advice for young professionals with Business Insider.

Find a company that values ambition

"Join a company that aligns with you and your ambitions," Arbov said. "Culture is a huge factor in choosing the right place to work. An example of a great culture is one that values hard work and lets you take on as much as you can if you raise your hand — as long as you deliver."

Learn from challenges

"Challenges generally means you're growing and you're learning, and I think learning is a key thing to constantly strive and achieve in any job," she said. "Challenges are good in the sense that you'll learn from them. And it probably won't be a challenge in your next iteration."

When facing a challenge, Arbov said, "it's always important to take a step back and think about what the goal is, what you are trying to achieve, and what the task at hand is."

"You can have five different deals that you're trying to push forward, and it's always a challenge in terms of what should take priority. Ask questions to whoever the right people are and figure out what the priority should be. Try not to get overwhelmed … think through it and take it day by day."

Have confidence

"Having confidence is believing in yourself," she said. "Keep your eye on the prize and continue to ask for more and do more. It's important, especially as a female."

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