Business Maverick

Friday April 26: Five Things You Need to Know to Start Your Day

By Bloomberg 26 April 2019
(FILE) - A mobile phone screen displays the Amazon Inc. mobile apps in Taipei, Taiwan, 05 September 2018 (reissued 08 January 2019). Reports on 08 January 2019 state Amazon has reached the world's most valuable company status at the close of US stock markets on Monday, 07 January 2019. Amazon eclipsed Microsoft's market value of 789 billion USD and rose to the top of list with 797 billion USD in market value. EPA-EFE/RITCHIE B. TONGO

U.S.-China trade talks circle around pharma, Tesla’s quarter proved to be one of the “top debacles” in 20 years of tech, and Joe Biden throws his hat in the presidential ring. Here are some of this morning’s key stories.

U.S. Mulls China Drug Concessions

The Trump administration may concede to a Chinese proposal that would give less protection for U.S. pharmaceutical products than they receive at home, according to people familiar with the matter, a move that could draw opposition from the American drug industry. Under the Chinese offer being discussed as part of wider trade talks, U.S. pharmaceutical companies would get eight years of regulatory data protection in China for the biologics they develop. That compares with the 10 years of protection they get in the new Nafta, which Congress hasn’t yet approved, and the 12 years they receive in the U.S.

Uber’s $90 Billion Valuation 

Uber is looking at a $90 billion valuation as it begins planning to market shares — at $44 to $50 each — in its initial public offering. The ride-hailing company could aim to raise about $8 billion to $10 billion in the listing. It’s expected to set the terms as soon as Friday, people familiar said. At the lower end of the range the price would value Uber just above its last private funding round, in which Toyota Motor Corp. invested at a valuation of about $76 billion. Uber is taking a conservative approach to its valuation and could later raise the price depending on investor demand, the people said.

Stocks Mixed, U.S. Dollar Gains 

Asia stocks were set for a muted start to Friday, after mixed messages from U.S. benchmarks. While the tech-heavy Nasdaq reached a record following strong results from Microsoft and Facebook, industrials faltered with the S&P 500 Industrials Sector Index falling 2 percent, the biggest drop since March 22. The dollar extended gains to a four-month high and Treasuries dipped after solid U.S. durable-goods data. Brent crude couldn’t hold a rally past $75 a barrel.

China’s Earnings Showdown Kicks In 

The next few days are likely to be a tipping point for the world’s top performing stock market in China. With some of the nation’s largest companies scheduled to report earnings, investors will be looking for evidence that an improving corporate sector will support valuations at a time when the government is paring back stimulus. Doubt is creeping in — the Shanghai benchmark has slumped 4.5 percent this week, set for its worst performance since October. A stronger dollar is the latest headwind, while the memory of a flood of profit warnings in January may be spurring some profit taking before the earnings data.

Tesla’s Quarterly Debacle 

Tesla’s latest first quarter was “one of top debacles” ever seen in 20 years of covering tech stocks on the Street, Wedbush analyst Daniel Ives said. He likened the quarter to an episode of the “The Twilight Zone” where Musk & Co. “act as if demand and profitability will magically return to the Tesla story.”


Want to watch Richard Poplak’s audition for SA’s Got Talent?

Who doesn’t? Alas, it was removed by the host site for prolific swearing*... Now that we’ve got your attention, we thought we’d take the opportunity to talk to you about the small matter of book burning and freedom of speech.

Since its release, Pieter-Louis Myburgh’s book Gangster State, has sparked numerous fascist-like behavior from certain members of the public (and the State). There have been planned book burnings, disrupted launches and Ace Magashule has openly called him a liar. And just to say thanks, a R10m defamation suit has been lodged against the author.

Pieter-Louis Myburgh is our latest Scorpio Investigative journalist recruit and we’re not going to let him and his crucial book be silenced. When the Cape Town launch was postponed, Maverick Insider stepped in and relocated it to a secure location so that Pieter-Louis’ revelations could be heard by the public. If we’ve learnt one thing over the past ten years it is this: when anyone tries to infringe on our constitutional rights, we have to fight back. Every day, our journalists are uncovering more details and evidence of State Capture and its various reincarnations. The rot is deep and the threats, like this recent one to freedom of speech, are real. You can support the cause by becoming an Insider and help free the speech that can make a difference.

*No video of Richard Poplak auditioning for SA’s Got Talent actually exists. Unless it does and we don’t know about it please send it through.


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The rand is going digital – and the Reserve Bank is open for suggestions

By Ruan Jooste