Can Takeda Pharmaceutical Go Truly International?

The chief executive of Takeda Pharmaceutical struck back against shareholders who are angry about his plan to appoint a foreigner as president, saying the move was necessary for global growth.  Two months ago, a group of more than 100 shareholders and former employees wrote to the board of Japan’s biggest drug maker to protest the ascension of a non-Japanese, Christophe Weber, to the top position of Takeda as akin to “hijacking by foreign capital.” In response, Takeda CEO Yasuchika Hasegawa made an impassioned 30-minute speech at the annual meeting in Osaka, defending his blueprint for overseas expansion.

The founding family behind Asia’s largest pharmaceutical company is up in arms at the present board’s plans to appoint a non-Japanese person as its first foreign president.
A former executive of British pharmaceuticals giant GlaxoSmithKline, 47-year-old Mr Weber is scheduled to be formally installed at a shareholders’ meeting.
But in a boardroom row that has echoes of Michael Woodford’s unhappy – and brief – stint as president of Olympus Corp in 2011, the family that set up Takeda Pharmaceutical Co. has allied itself with former members of the board to oppose the confirmation of Mr Weber as president.

110 members of the Takeda family and former executives have signed a letter of protest to the present board of the 230-year-old company in protest at the approval.
According to the Yomiuri newspaper, their opposition is based on the belief that Mr Weber could sanction the sale of the company to a foreign company and its technologies would be transferred overseas and lost.

To what extent are companies national or international today?  Certainly in the US, foreign nationals run many big companies, presumably because they are the best people available for the CEO job.

Takeda Goes International

 

US Supreme Court Impacts International Finance

 

Felix Salmon for Foreign Affairs reporting:  There aren’t many institutions powerful enough to bring a sovereign nation to its knees. Most of those that are wield their power with great care; the rest are dangerous fundamentalists. Last week, the U.S. Supreme Court placed itself — and the rest of the U.S. federal judicial system — squarely in the latter camp when it refused to accept an appeal by Argentina against a lower-court decision. The consequences are certain to be dreadful for Argentina. More broadly, the ruling will make it more difficult for countries to free themselves from the burden of over-indebtedness. It will be very bad for international capital markets. Oh — and it will also diminish national sovereignty.

The case involved Argentina and a group of so-called vulture funds, led by the deep-pocketed and highly litigious hedge fund Elliott Associates, which was demanding repayment in full on old Argentine debt. Elliott had first come to broad public attention in 2000, when it brought — and won — a similar case against Peru. That unprecedented victory against a sovereign government, although worth a mere $90 million, so deeply shocked the international financial community that it prompted the International Monetary Fund to undertake a messy and protracted attempt to create a brand-new sovereign bankruptcy court. The Argentina case is much, much bigger — Argentina owes Elliott over a billion dollars. The total amount that it owes “holdout creditors,” as the vulture funds are more formally known, is some $15 billion. Given that other holdout firms will immediately demand any terms awarded to Elliott, Argentina is not lying when it says that it simply can’t afford to do what the U.S. courts are demanding of it — which is to pay all the holdouts in full. Already the IMF is talking about setting up a bankruptcy court.  A Vulture Fund v Argentina

Vulture Funds Win in US Supreme Court

 

Women and Finance at the Said Forum, Oxford

Takeaways.  Some obvious and some not to.

For more than 2,000 years, women have been excluded from the system of money. Often engaged in unpaid labour, usually barred from inheriting wealth, frequently forbidden to have bank accounts, and commonly unable to own property, women in the history of East and West have been effectively left out of the world of investment and credit. Today, the prints of past exclusion can still be seen in laws and practices of developed and developing nations.

Now, however, major institutions throughout the world are working together to create a more inclusive system to promote growth and equality. Power Shift 2014 uncovered exclusionary practices, identified effective reforms, and celebrated champions of change.

!.  Set bigger goals and you’ll surprise yourself 2.  Don’t ask friends for their opinion about your product or service. They’ll never tell you the truth. Just ask strangers.       3..  You need to meet people before you need them, so start building your network now. 4.  Never eat lunch alone; it’s an opportunity to make new connections.          5.  You’ll not be remembered for being a good business woman but you’ll be remembered for being a good mum/sister/friend etc. See yourself as a human first, and a woman second. 6.  Learn how to say No. For example: “I’m saying No to this so I can say Yes to something else.” 7.  You are what you do! Start doing more with what you have. 8.  Women need to introduce more numbers into your business plans. Men’s business plans have more numbers so they look more impressive and most of the reviewers approving the business plans at the banks are also men!       9. Ask for help. Women are notorious for not asking for help when they need it. –

We Can Do It!

Can Cars Be Made from Tomato Waste? Ford and Heinz are Trying

Two years ago, in something like a quirky, B2B Craigslist hookup, Heinz, Ford, Coca-Cola, Nike, and Procter & Gamble found one another. Since then, the five companies have been exploring ways to replace conventional, petrochemical-based plastic with materials derived completely from plant matter.

This week, Ford announced that it and Heinz have made a good bit of progress, as they’ve worked to turn the latter’s tomato waste into the former’s bioplastics. Ford says that tomato skins, for example, may ultimately be used to create plastic for wiring brackets, panels, or storage bins. (Still no word on the seeds and stems, which, as any college student can tell you, are problematic.)

Ellen Lee, a plastics research technical specialist with the automaker, says that “Our goal is to develop a strong, lightweight material that meets our vehicle requirements, while at the same time reducing our overall environmental impact.”

Which is great, but it avoids any mention of economic imperatives. Despite the hazards involved in producing and employing plastics derived from petrochemicals, companies keep doing so because it’s cheap. Recycling old materials and creating new ones from waste takes time and considerably more money — at least in the initial phases. That’s a deterrent to managers and shareholders focused on the bottom line.

There are also limits to the safety and effectiveness of these new materials. Plant-derived products may be fine for building storage bins, but no one’s found a way to use them as substitutes for sheetmetal. (Though that hasn’t kept some from trying.) Shifting to aluminum car bodies can lessen the environmental impact of auto manufacturing, since aluminum is easily recycled, but the dream of a fully recycled or bio-based car is a long way off.

And sadly, future technology isn’t necessarily much cleaner. As eco-friendly as battery electric and fuel cell vehicles may seem, they still require a lot of resources — not just mined metals that create car batteries, but also electricity that’s often generated from “dirty” sources.

Like global warming, education, the obesity epidemic, and countless other contemporary problems, greening cars can’t be done in one fell swoop. It’s death – or in this case, success – by a thousand cuts. Kudos to Ford and Heinz for taking a stab at it.

Can Ford Make a Car from Tomatoes?

Tesla Motors Offers to Share its Patents

In the interest of developing electric cars, Elon Musk will give you his patents if you want them. The chief executive of Tesla Motors, the electric car company, will let competitors use its patents, numbering several hundred, without the fear of triggering a lawsuit. In a blog post Thursday, Mr. Musk notes his reasoning for a decision that would ordinarily leave patent lawyers scratching their heads.

Namely, that “annual new vehicle production is approaching 100 million per year and the global fleet is approximately 2 billion cars,” he says in the post. “It is impossible for Tesla to build electric cars fast enough to address the carbon crisis.”

This decision goes along with the company’s stated goal: showing that an electric car can be every bit as utilitarian and cool as a gasoline-fueled car.  Musk says patents hinder progress and stand in the way of companies developing electric cars.  “Tesla Motors was created to accelerate the advent of sustainable transport,” he says in the post. “If we clear a path to the creation of compelling electric vehicles, but then lay intellectual property landmines behind us to inhibit others, we are acting in a manner contrary to that goal.”

Because so few companies are producing electric cars, Musk is confident that others’ use of its technology will not hurt the Palo Alto-based company. In his view, the competition is not other electric car manufacturers, but rather “the enormous flood of gasoline cars pouring out of the world’s factories every day.”

At major auto manufacturers, the amount of electric cars produced, or cars that burn no hydrocarbons, totals less than one percent. By opening up its patents, Musk hopes to reverse this trend. Granted, he recognizes that things won’t change overnight. Rather, the move comes more as a symbolic gesture to begin moving an industry toward a spirit of greater cooperation in an effort to begin producing more zero-emission vehicles.

“Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world’s most talented engineers,” Musk says in the post. “We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.”

Musk noted that Tesla will continue to secure patents for its future products so that other companies don’t take the idea and patent it themselves, according to Forbes. Still, future patents will also be available for free.

Electric Car

People’s Bank of China Lowers Reserve Requirements

PBOC will cut the reserve requirement ratio (RRR) by 0.5 percentage points for banks engaged in proportionate lending to agricultural and small firms. The cut will take effect from June 16, said a statement released by the People’s Bank of China (PBOC), the central bank.

In the west, reserve requirements have been fodder for regulators trying to make banks more stable.  China’s use of the reserve requirement to help sectors of the economy is probably a much better use of reserves, which at Basel levels don’t do much good anyway.

Change in banks’ cash reserves in China are aimed at boosting agriculture.  The statement provided the details following a cabinet decision late last month to launch narrow-based RRR cuts for banks engaged in lending to agriculture-related businesses and small and micro-sized companies, in efforts to enhance financial support to the real economy.

Banks eligible for the cut include those whose new loans to agriculture-related entities accounted for at least half of their total new lending in the last fiscal year; banks whose outstanding loans to agriculture-related entities accounted for at least 30 percent of their total outstanding loans in the last fiscal year will also be qualified for the cut, the statement said. The same rule applies to banks engaged in lending to small and micro-sized companies, according to the central bank.
“According to the standard, the targeted RRR cut will cover around two-thirds of city commercial banks, 80 percent of rural commercial banks above county level as well as 90 percent of rural cooperative banks above county level,” said the statement.

Meanwhile, the central bank will cut the RRR for finance companies, financial leasing firms, and automobile finance enterprises by 0.5 percentage points. The cut is aimed to improve the capital use efficiency of these companies and boost consumption, the statement said.

The central bank noted that the cut will not apply to county-level rural commercial banks and rural cooperative banks, who had their RRR reduced on April 25.
Zhang Zhiwei, an economist with Nomura Securities, said in a research note that the cut is estimated to inject 95 billion yuan ($15.45 billion) of liquidity to the economy.
“Combining this measure and other liquidity injection actions through the re-lending facility and the RRR cut on April 25, we estimate the PBOC will inject 545 billion yuan of liquidity into the economy by the end of June,” Zhang said.
Even though the announcement marks the second targeted RRR cut within two months, the central bank said this did not mean a change to the country’s fundamental monetary policy.

“The PBOC will continue to implement a prudent monetary policy, maintain reasonable liquidity, as well as reasonable growth in both monetary credit and social financing,” the central bank statement said.
It added that the directive RRR cut could boost credit structure, and such a monetary policy tool will also help with the nation’s economic restructuring efforts.

Banking Reserves

Meet Elizabeth Warren, Warrior

 

U.S. Sen. Elizabeth Warren talks real pocketbook issues, as in, why yours is empty.

And she means what she says, writes Margery Eagan in the Boston Herald.  In barely a year in the Senate, she’s turned into a Robin Hood for the “hammered” middle class, her endlessly repeated line. But are you in the middle class? Then you know: You are hammered. Can’t afford to retire. Can’t afford the mortgage, taxes, car repairs, college. If you’ve just finished college you can’t afford to move from mom’s basement. Why? The four-figure college loan payments you owe each month.

This is not how it’s supposed to be if you work hard and play by the rules in America. But this is how it is.

Who’s talking about this mess nonstop?

Elizabeth Warren.

The rich keep getting richer, she says, while the poor get poorer and the middle class, let me repeat, gets “hammered.” The banks that were too big to fail in 2008 are even bigger now. Soon we’ll get taxed to bail them out, again.

Rant about EBT cards all you want. If every one disappeared tomorrow, you’d still be hammered. The real money’s in big corporations and on Wall Street. And they own most of our pols. “Meet the Woman who Stood Up to Wall Street.” So reads a huge headline in a fawning article about Warren in young ladies’ favorite sex-tip magazine, “Cosmopolitan.” That’s the magazine that featured a near-nude young Scott Brown, the penny stock investor — whoops! — whom Warren vanquished. Now “Cosmo” features a fetching young Warren in thigh-hugging jeans and details her rise from divorced mother to the country’s most powerful financial reformer.

Has she reformed anything yet? No.

Is she making progress? Yes — from trashing federal regulators for refusing to regulate banks to crusading for a higher minimum wage. Just yesterday, President Obama praised her for introducing a bill that would let college graduates refinance loans at lower rates. Because it’d be paid for by ending a tax break for millionaires, it will likely fail in a Republican House that takes care of millionaires instead of the “hammered.”

But since it’s finally dawning on the “hammered” millions that the system is indeed rigged, Warren, eventually, could prevail. Says Marty Walsh adviser Michael Goldman, “For politicians, the hardest thing to get is the perception that you actually, deep down, believe in what you’re saying.”

Apparently more and more of us not only believe Warren believes what she says. We also believe she’s right.

Warren works step by step on individual issues.  She is graceful, calm and forceful. Watch her take down the big boys with a cool insistence.  Is she ready for the big time?  Maybe yes, maybe no.  Interestingly, Mrs. Clinton is bringing what she knows about global politics to the front of her speeches.  Is this what Americans are thinking about?

With Thomas Piketty

Taking down Timothy Geithner

Warren

 

Astronomical Salaries for Health Insurance Salaries in the US

The Center for Public Integrity reports:

If health insurance companies announce big premium increases on policies for 2015, I hope regulators, lawmakers and the media will look closely at whether they are justified, especially in light of recent disclosures of better-than-expected profits in 2013, rosy outlooks for the rest of this year and soaring CEO compensation.

Almost all of the publicly traded health insurers reported big increases in revenue and profits last year. The big winners have been the top executives of those companies, led by Mark Bertolini, CEO of Aetna, the nation’s third largest health insurer. Bertolini’s total compensation of $30.7 million in 2013 was 131 percent higher than in 2012.

If the stock prices of these firms keep growing at the current pace, Bertolini and his peers can expect to be rewarded even more handsomely this year, especially if they can hike premiums high enough to satisfy shareholders.

According to Health Plan Week, a trade publication, the CEOs of the 11 largest for-profit companies were rewarded with compensation packages last year totaling more than $125 million.

Over the past several weeks, several of them have told shareholders and Wall Street financial analysts that their companies likely will have higher profits at the end of this year than they expected, despite having to pay more medical claims as a result of the new Obamacare customers they picked up.

Those announcements have been music to the ears of shareholders, who are considerably wealthier today than they were this time last year.

Of those 11 companies (Aetna, Centene, Cigna, Health Net, Humana, Molina, Triple-S Management Corp., UnitedHealth Group, Universal American, Wellcare, and WellPoint) nine saw their stocks close near 52-week highs this past Friday.

The biggest gainer has been Humana, one of the largest operators of Medicare Advantage plans, whose share price has increased more than 53 percent over the past year.

The increases have been equally impressive at most of the other big companies. Aetna’s share price is up 31 percent, Cigna’s 32 percent. United’s is up 28 percent. And WellPoint’s is up 39 percent.

But it is the CEO compensation that has been the most eye-popping, especially at two of the publicly traded companies that specialize in managing Medicaid enrollees in several states: Centene and Molina.

Centene’s CEO Micheal Neidorff saw his compensation increase 71 percent last year, from $8.5 million to $14.5 million. Even more impressive was the 140 percent raise Molina’s J. Mario Molina got. His compensation jumped from $4.95 million in 2012 to $11.9 million in 2013.

 

The question we continue to ask is: Should the salaries of CEOs in publicly-held companies be capped?  Would this help inequality?

Executive Pay

UAE Favored Destination for Migrating Professionals

The UAE has emerged as the most popular destination for professionals looking to migrate, according to a new study by networking site LinkedIn.  The global study, which tracked talent migration among the 300 million members on LinkedIn’s network, found that the UAE gained 1.3 per cent as a percentage of its total workforce in a 12-month period, topping a list of 20 nations.

Of this talent inflow, 75 per cent was from outside the Middle East, and more than 40 per cent reported a new role with a promotion and higher designation, a statement said.  India was the top destination from where most professionals moved to the UAE, followed by the UK, Pakistan, the United States and Saudi Arabia.

The industry sectors that attracted the most talent were management & leadership, engineering, sales accounting and lifestyle.

The UAE has attracted more professional talent as a percentage of its workforce than countries such as Canada, Brazil, Switzerland, Saudi Arabia, South Africa, India, Singapore and Australia, the statement said.

Ali Matar, head of Talent Solutions, LinkedIn MENA, said: “This latest study shows that two Middle Eastern nations, UAE and Saudi Arabia, have gained talent at 1.3 per cent and 0.9 per cent respectively. Talent inflows are from Europe, USA, the Subcontinent, and other Arab nations, showing that the Gulf states still retain their attractiveness for employment.”

Overall, the study found that the countries that topped the list in exporting talent to other countries were Spain, United Kingdom, France, the United States, Italy and Ireland.

The UAE is building up its talent base as it prepares to host Expo 2020 in Dubai. The six-month long event is expected to provide up to 277,000 new job opportunities in the market and boost the economy.  W-T-W.org will explore the reasons why and particularly opportunities for women.

UAE

 

SEC Awards $875,000 to Two Whistleblowers

The Securities and Exchange Commission announced a Whistleblower Award of $875,000 to be divided equally between two individuals who provided tips and assistance to the agency in bringing enforcement actions.

W-T-W.org encourages individuals to step forward when they see corruption.  In the US, since 2011 when the Dodd-Frank Act authorized the program.  A total of 8 people have received awards so far.  If you see something, say something.

Artist Fernando Lllera

Artist Fernando Lllera