Tokyo prosecutors preparing new case against Ghosn over Oman payments: report - Japan Today

Tokyo prosecutors are preparing to build a fresh case against ousted Nissan Motor Co Ltd chairman Carlos Ghosn over suspect payments the automaker made to a business partner in Oman, Japan's Yomiuri newspaper reported on Wednesday.

Tokyo prosecutors are in discussions with the Supreme Public Prosecutors Office and others and plan to make a decision soon on whether to prosecute Ghosn on further charges of aggravated breach of trust, the newspaper said, citing sources involved in the case.

A spokesman for the Tokyo prosecutors office said he was not aware of any new investigation when contacted by Reuters.

Ghosn's spokesman has previously said payments of $32 million made over nine years were rewards for the Oman firm being a top Nissan dealer. Such dealer incentives were not directed by Ghosn and the funds were not used to pay any personal debt, the spokesman said.

Ghosn was arrested in Tokyo in November and faces charges of financial misconduct and aggravated breach of trust over allegedly failing to report around $82 million in salary and temporarily transferring personal financial losses onto Nissan's books during the financial crisis.

Ghosn, who previously headed the Renault-Nissan alliance, denies the charges. He was released on bail last month as he awaits trial.

Sources told Reuters earlier this week that Renault SA had alerted French prosecutors after uncovering suspect payments to a Renault-Nissan business partner in Oman while Ghosn was chief executive of the French automaker.

Nissan had previously established that its own regional subsidiary had made questionable payments of more than $30 million to the Oman distributor, Suhail Bahwan Automobiles (SBA).

Evidence sent to French prosecutors late last week showed that much of the cash was subsequently channelled to a Lebanese company controlled by Ghosn associates, the sources said.

Reuters has not been able to reach SBA for comment on the matter.

© (c) Copyright Thomson Reuters 2019.

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2019-04-03 06:22:30Z
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Walgreens stock on track for worst day since 2014 after ‘most difficult quarter’ ever - MarketWatch

Shares of Walgreens Boots Alliance Inc. were on track for their lowest close since 2014 after the company reported fiscal second-quarter earnings that missed expectations and slashed its full-year outlook.

Shares plummeted 12% on Tuesday. Chief Executive Stefano Pessina called the quarter “the most difficult quarter we have had since the formation of Walgreens Boots Alliance WBA, -12.98%  .”

Net income fell to $1.16 billion, or $1.24 a share, from $1.35 billion, or $1.36 a share, in the same period a year ago. Excluding nonrecurring items, the company said adjusted EPS declined 5.4% to $1.64, below the $1.72 that FactSet analysts were expecting.

“A number of the trends we had been expecting and preparing for impacted us significantly more quickly than we had anticipated,” Pessina said during an earnings call with analysts on Tuesday, citing “increased reimbursement pressure in the quarter, lower generic deflation, lower brand inflation and lower-than-anticipated benefits from our work to refresh and renew our retail offering, primarily in the U.S.”

Sales, which rose 4.6% to $34.53 billion, came in slightly below the FactSet consensus of $34.58 billion. Same-store retail sales in the U.S. fell 3.8%, which Walgreens blamed on a weak cough, cold and flu season, lower tobacco sales and lower sales of seasonal merchandise. U.S. pharmacy sales, which accounted for more than 70% of U.S. sales in the quarter, increased 9.8% compared with the year-ago quarter, reflecting higher prescription volumes from the acquisition of Rite Aid stores. However, same-store growth for both the company’s pharmacy and retail segments is trending below planned, said Global Chief Financial Officer James Kehoe during the earnings call.

Walgreens now expects full-year earnings for 2019 to be flat, compared with a previous forecast of 7% to 12% growth. The company said it plans to cut more than $1.5 billion in costs by fiscal 2022, an increase from the previously planned $1 billion.

In a note to clients, Evercore ISI analyst Ross Muken said Walgreens was “under siege” and called the company’s plan “uninspiring.” Jefferies health-care sector specialist Jared Holz said in another note that Walgreens’s latest results were “unsettling” and that he saw “no apparent strategy.”

The company’s poor second-quarter performance and disappointing guidance spurred speculation about future M&A opportunities. But Pessina waved that off during the earnings call, saying the company’s view remained unchanged. “We don’t see any reason to use our cash — overpaying for something — just because, as we said, of the degradation of the market,” he said.

In an increasingly challenging market, Walgreens has formed numerous partnerships in an effort to diversify its business. It paired up with grocery chain Kroger Co. KR, -2.51%   to explore a pilot a program where customers can order groceries online and pick them up at participating Walgreens stores. The company took a minority stake in Birchbox Inc. in October and began selling the subscription-box company's products in select stores across the U.S. And it is working with Humana Inc. HUM, -1.77%  , Sprint Corp. S, +0.62%  , FedEx Corp. FDX, -1.42%  and diagnostic testing firm LabCorp on services ranging from drug delivery to opening diagnostic test centers inside stores.

But those efforts may not be enough for investors.

“While the world is repositioning for a more challenging environment, WBA has basically stood still,” Holz said. “Those looking for a quick fix may not be placated by anything said today or near term.”

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2019-04-02 17:04:00Z
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Bitcoin spike blamed on an April Fools' joke — but that's not why it rallied - CNBC

Bitcoin wasn't immune to April Fools' Day jokes.

One prank in particular got some credit for boosting the price of the world's largest cryptocurrency. After bitcoin broke above $5,000 on Tuesday, its highest level of the year, some blamed trading algorithms designed to buy or sell based on news. As some speculated, robots triggered a buying frenzy after an April Fools' Day article by Finance Magnates outlined an "emergency meeting" by regulators over the weekend to approve a bitcoin exchange traded fund.

But multiple experts say the buzz was not responsible for bitcoin's recovery. Hunter Horsley, whose company Bitwise is was mentioned in the April Fool's Day report, said there was no truth to the ETF rumor.

"It's absurd to believe this market move is the result of confusion about the Bitcoin ETF filings," said Horsley, CEO of Bitwise, which is in the process of applying for the first-ever bitcoin ETF. "Though ETFs and April Fools are topical, there are lots of reasons this is an unlikely explanation."

The most likely explanation, he said, is a Reuters report of a private buyer purchasing more than $100 million worth of bitcoin over of a short period. Given the small daily trading volume of bitcoin, "that order would be enough to have an impact," he said.

"Crypto is famous for a long history of volatility like this. It's always hard to pin down the true impetus, and often the real source is not obvious," Horsely said.

TWEET

Another rumor was that Berkshire Hathaway CEO Warren Buffett — one of bitcoin's most vocal critics — was diversifying into the asset class. As Founder and CEO of BKCM Brian Kelly put it, "there's no way" that's the reason.

A more realistic possibility is that bitcoin hit a key technical level, he said. Kelly poined to a key $4,200 price level triggering a stop loss trade. In bitcoin and other assets, traders will often set a certain level for when they automatically cover their short. It may also be a sign that fundamentals are improving and bitcoin is running out of sellers, according to Kelly.

"Everyone who panicked and sold is already out," Kelly told CNBC Tuesday.

TWEET

Arca Funds CIO Jeff Dorman, a former trader for Lehman, Merrill, Citadel said even if buying by trading algorithms kicked off the euphoria, that would have reversed quickly if investors were eager to sell. Instead, the rally boosted bitcoin to its highest level since November. This particular rally was caused by a "simple" imbalance of more sellers than buyers, he said.

"The large magnitudes of the moves in crypto make it more interesting of a story, but it's not that different than any other asset class," Dorman said. "Buyers outweighed sellers, and market makers felt the pressure so they took their markets higher, which triggered stop losses and liquidations, which added more buy pressure."

Bitcoin prices have seen a relatively calm 2019 after a year of volatility. The cryptocurrency fell roughly 75 percent last year after climbing to a high of almost $20,000 at the end of 2017. It has has yet to recover anywhere near high that since and was trading near $4,728 on Tuesday afternoon.

But still, Dorman said some investors may be looking to get back in.

"The fact that every small dip has been bought immediately in the last few weeks shows that investors are not scared of sell-offs, they are hoping for them so they can buy more," he said. "This certainly raises the near-term floor, but this sentiment can change on a dime too."

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2019-04-02 18:00:55Z
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Bitcoin (BTC) Prices Explode after Fool’s Day with “Zero” Fundamentals - newsBTC

• Bitcoin prices uptick, up 22 percent
• Fundamentals and analyst signal buy

Mark Dow says Bitcoin (BTC) is buyable, and true to his word, it is. The coin is up 22 percent in the last week thanks to today’s upswing thrusting the asset above $4,500. With favorable candlestick arrangements, Bitcoin (BTC) will likely test $6,000 in short to medium term.

Bitcoin Price Analysis

Fundamentals

There is a transition and bulls are back. In 30 short minutes, Bitcoin (BTC) prices spiked to above $5,000 and, in the process, cleared $4,500, a significant resistance level. As it is, we expect this trend to continue, and there are supporting indicators. Not only are there humongous candlesticks in today’s hourly chart but major events indicate bullish sentiment. More analysts are joining the crypto buy train.

Case in point is Mark Dow, the former IMF economist who made money from the last Bitcoin rally of Q4 2017 and shorted the most valuable coin last year making upwards of $20 million. In his analysis, the economist recommends long, saying Bitcoin is “buyable” at current valuation.

Exiting his shorts, he said he’s “done and doesn’t to try to ride this (slide) to zero” and that “he doesn’t want to try to squeeze more out of the lemon.” At the moment, we cannot pinpoint the exact cause of this upswing but what we know is that there are sufficient volumes to sustain gains in short to medium term.

Candlestick Arrangement

From the chart, it’s back to green for the world’s most valuable coin. Driven by participation and even FOMO, BTC is up 15 percent in the last day and 22 percent in the previous week as prices trend above $4,500 or the 38.2 percent Fibonacci retracement level of Q4 2018 depreciation.

As it is, our BTC/USD trade plan is live after today’s close above Q1 2019, $1,300 draining accumulation. Therefore, because of today’s trade range, we expect a short pullback which traders should capitalize with first targets at $5,800–$6,000.

With the market lighted, it is likely that volumes will keep rising up and as demand increase so will BTC prices, and the first reasonable target for bulls will be the breakout level at $5,800—which is previous support now resistance.

Technical Indicator

Like before, our anchor bar is Feb 24, a bear bar with high volumes—36k. Since prices are up trading above $4,500 with high transaction volumes above 40k—at the time of writing, our trade conditions are , and both sets of traders can begin ramping up as aforementioned.

Chart courtesy of Trading View

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2019-04-02 17:00:00Z
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Bitcoin storms higher, rises 20% and tops $5,000 for the first time in 2019 - MarketWatch

Bitcoin prices surged higher on Tuesday, rising as much as 20% at trading above $5,000 for the first time in since November 2018.

Bitcoin BTCUSD, +14.36%  was changing hands at $4,765.85 in recent action, up 14.9% since Monday’s level at 5 p.m. Eastern time. The cryptocurrency hit a session high at $5,061, a gain of 22.9% on the day.

The market value of all cryptocurrencies rose more than $15 billion in less than 90 minutes on Tuesday, according to data from CoinMarketCap.

Read: Bitcoin jumped as much as 20%: Here’s what experts are saying about the move

What are analysts saying

After months in the doldrums, bitcoin aficionados have awakened with several now calling the December 2018 low near $3,200 as a medium-term bottom.

“After being in bear territory there is a growing sense that bitcoin is back. I’m now calling that the market has bottomed and the so-called crypto winter has come to an end,” wrote Nigel Green, CEO of deVere Group, a U.K. consulting firm.

“I believe bitcoin will now move higher over the next few weeks and months, making steady gains for investors. As the largest cryptocurrency by market cap, this will have a positive impact on prices in the wider crypto sector,” Green wrote.

Bitcoin Cash explodes through $200

Bitcoin’s surge dragged altcoins, the group of coins other than bitcoin, higher. Ether, ETHUSD, +11.19%  the second-largest digital currency by market value rose 11% to $156.19, Litecoin LTCUSD, +18.36% added 18.2% to $71.10, Bitcoin Cash BCHUSD, +28.35% erupted, trading 30% higher to $216.20 and XRP XRPUSD, +8.74% was trading at 34 cents, up 9% on the day.

Bitcoin futures opened sharply higher on Tuesday. The Cboe April contract XBTJ9, +14.42%  gained 14.9% to $4,740 and the CME April contract BTCJ9, +14.55%  added 15.2% at $4,750.

Read: The crypto market is healthier than you probably think, so this chart says

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2019-04-02 16:52:00Z
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Walgreens shares slide as drugstore chain misses earnings estimates, lowers 2019 forecast - CNBC

Walgreens Boots Alliance reported quarterly earnings and revenue that missed analysts' expectations and lowered its forecast for 2019 in what CEO Stefano Pessina called the "most difficult" quarter since acquiring European drugstore chain Alliance Boots in late 2014.

The company now expects full-year earnings for 2019 to be roughly flat, compared with its previous forecast of 7 to 12 percent growth, it said Tuesday. The company also said it would cut more than $1.5 billion in costs by fiscal 2022, up from the $1 billion it announced last quarter.

"A number of the trends we had been expecting and preparing for impacted us significantly more quickly than we had anticipated," Pessina told analysts on a call to discuss Walgreens' performance during the second quarter of fiscal 2019, which ended Feb. 28.

Walgreens' shares slid by more than 12 percent, on pace for their worst day since Aug. 6, 2014, when they lost 14.3 percent. The company dragged down its competitors, sending CVS shares tumbling nearly 4 percent and Rite Aid's stock down by about 8 percent, though it trades for less than $1 a share.

For more on investing in health care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.

Walgreens reported adjusted earnings of $1.64 per share during the quarter, missing analysts' estimates of $1.72 per share, according to data compiled by Refinitiv. Revenue also fell short, coming in at $34.53 billion. Analysts had been looking for $34.56 billion.

It generated $1.16 billion in net income, or $1.24 per share, down from $1.35 billion, or $1.36 per share a year earlier.

On an adjusted basis, which excluded foreign currency fluctuations and a few other items, Walgreens said it earned $1.64 per share, below the $1.72 per share analysts were expecting.

Generic drug prices declined and pharmacy benefit managers paid Walgreens less, weighing on the pharmacy chain in the quarter, Pessina said. Walgreens also faced "consumer market challenges" in the U.S. and the U.K., he said.

Same-store sales declined 3.8 percent, which Walgreens said was primarily because of a weak cough, cold and flu season compared to the previous year. Walgreens is working with LabCorp, Humana, Sprint and others on everything from offering senior care services to selling phones in their stores.

Co-Chief Operating Officer Alex Gourlay told analysts Walgreens is "pleased" with the progress its making on its partnerships. He said the company is working closely with Kroger's executive team to "determine how best to unlock future growth and synergies." Walgreens paired up with the Kroger in October to sell groceries in some Walgreens stores and expanded the pilot in December.

Drugstores are also trying to diversify their products and experiment with new ways to get people into their stores. Walgreens last week said it will sell CBD products in about 1,500 of its stores, following CVS. Rival CVS is changing up its business model after buying health insurer Aetna for $70 billion late last year.

Pessina on Tuesday said Walgreens still isn't interested in pursuing any deals right now.

"We are constantly reviewing a certain number of companies," he said. "Don't ask me the names I cannot give you the names, but of course, until now, we have not found the right numbers to do a combination with these companies."

Executives tried to ease concerns that it would cut costs too much and starve the business. Chief Financial Officer James Kehoe said Walgreens will invest about $1 billion over the next three years between operating expenses and capital.

"Approximately 80 percent is operating expense, so think about it for a minute. In one year, we'll be putting in $300 million to boost the partnerships and to boost our capabilities on digitalization of the company, so we're not going through the business for the sake of hitting cost cutting," he said.

Executives from Walgreens and rival CVS Health have warned investors in recent months that profits might not be all that fat this year. The Trump administration has been pressuring drugmakers and pharmacy benefits managers to lower consumer prices, both of which may cut into the bottom line for drugstore chains.

While analysts were expecting a bad quarter, they weren't prepared for it to be as bad as it was and for Walgreens to fall short in so many different areas.

"The magnitude was significantly worse," Jefferies analyst Brian Tanquilut told CNBC.

Walgreens also bought back more than $2 billion of its own stock in the quarter, bringing its total stock buybacks for fiscal 2019 to $3.11 billion so far, he noted. The company repurchased $5.23 billion of its shares all of fiscal 2018, according to the company's financial statement. Stock buybacks can make the company's profits look better because there are fewer shares outstanding, thus boosting earnings per share.

Evercore analyst Ross Muken in a note to clients said "this was truly a terrible print, as most metrics missed materially." This is the first time Pessina has missed quarterly guidance since he was named CEO in July 2015, he added.

CORRECTION: This story was updated to correct the company's adjusted earnings estimate. It was $1.72 a share.

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2019-04-02 15:06:23Z
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Walgreens shares slide as drugstore chain misses earnings estimates, lowers 2019 forecast - CNBC

Walgreens Boots Alliance reported quarterly earnings and revenue that missed analysts' expectations and lowered its forecast for 2019 in what CEO Stefano Pessina called the "most difficult" quarter since acquiring European drugstore chain Alliance Boots in late 2014.

The company now expects full-year earnings for 2019 to be roughly flat, compared with its previous forecast of 7 to 12 percent growth, it said Tuesday. The company also said it would cut more than $1.5 billion in costs by fiscal 2022, up from the $1 billion it announced last quarter.

"A number of the trends we had been expecting and preparing for impacted us significantly more quickly than we had anticipated," Pessina told analysts on a call to discuss Walgreens' performance during the second quarter of fiscal 2019, which ended Feb. 28.

Walgreens' shares slid by more than 12 percent, on pace for their worst day since Aug. 6, 2014, when they lost 14.3 percent after earnings.

For more on investing in health care innovation, click here to join CNBC at our Healthy Returns Summit in New York City on May 21.

Walgreens reported adjusted earnings of $1.64 per share during the quarter, missing analysts' estimates of $1.72 per share, according to data compiled by Refinitiv. Revenue also fell short, coming in at $34.53 billion. Analysts had been looking for $34.56 billion.

It generated $1.16 billion in net income, or $1.24 per share, down from $1.35 billion, or $1.36 per share a year earlier.

On an adjusted basis, which excluded foreign currency fluctuations and a few other items, Walgreens said it earned $1.64 per share, below the $1.72 per share analysts were expecting.

Generic drug prices declined and pharmacy benefit managers paid Walgreens less, weighing on the pharmacy chain in the quarter, Pessina said. Walgreens also faced "consumer market challenges" in the U.S. and the U.K., he said.

Same-store sales declined 3.8 percent, which Walgreens said was primarily because of a weak cough, cold and flu season compared to the previous year. Walgreens is working with LabCorp, Humana, Sprint and others on everything from offering senior care services to selling phones in their stores.

Co-Chief Operating Officer Alex Gourlay told analysts Walgreens is "pleased" with the progress its making on its partnerships. He said the company is working closely with Kroger's executive team to "determine how best to unlock future growth and synergies." Walgreens paired up with the Kroger in October to sell groceries in some Walgreens stores and expanded the pilot in December.

Drugstores are also trying to diversify their products and experiment with new ways to get people into their stores. Walgreens last week said it will sell CBD products in about 1,500 of its stores, following CVS. Rival CVS is changing up its business model after buying health insurer Aetna for $70 billion late last year.

Pessina on Tuesday said Walgreens still isn't interested in pursuing any deals right now.

"We are constantly reviewing a certain number of companies," he said. "Don't ask me the names I cannot give you the names, but of course, until now, we have not found the right numbers to do a combination with these companies."

Executives tried to ease concerns that it would cut costs too much and starve the business. Chief Financial Officer James Kehoe said Walgreens will invest about $1 billion over the next three years between operating expenses and capital.

"Approximately 80 percent is operating expense, so think about it for a minute. In one year, we'll be putting in $300 million to boost the partnerships and to boost our capabilities on digitalization of the company, so we're not going through the business for the sake of hitting cost cutting," he said.

Executives from Walgreens and rival CVS Health have warned investors in recent months that profits might not be all that fat this year. The Trump administration has been pressuring drugmakers and pharmacy benefits managers to lower consumer prices, both of which may cut into the bottom line for drugstore chains.

While analysts were expecting a bad quarter, they weren't prepared for it to be as bad as it was and for Walgreens to fall short in so many different areas.

"The magnitude was significantly worse," Jefferies analyst Brian Tanquilut told CNBC.

Walgreens also bought back more than $2 billion of its own stock in the quarter, bringing its total stock buybacks for fiscal 2019 to $3.11 billion so far, he noted. The company repurchased $5.23 billion of its shares all of fiscal 2018, according to the company's financial statement. Stock buybacks can make the company's profits look better because there are fewer shares outstanding, thus boosting earnings per share.

Evercore analyst Ross Muken in a note to clients said "this was truly a terrible print, as most metrics missed materially." This is the first time Pessina has missed quarterly guidance since he was named CEO in July 2015, he added.

CORRECTION: This story was updated to correct the company's adjusted earnings estimate. It was $1.72 a share.

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2019-04-02 14:31:51Z
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