More Doctors Smoke Camels

Our community is getting busy, with daily commentary on what's happening in the financial world from finance professionals. There's so much going on that we've decided to include some of the most popular posts as part of the newsletter, check it out below 👇 or at community.finfoc.com!

One of the largest cigarette companies in the world has purchased a British pharmaceuticals company specialising in inhaled medicines. Philip Morris International, home to brands such as Malboro, Virginia Slims and stake-owner of JUUL, has purchased Vectura Group for $1.4bn. Pharmaceutical company, Merck & Co have submitted an application to the FDA for their oral antiviral Covid-19 pill, which could cut the risk of hospitalisation by half.

🏦Anatomy of an Investment Bank with Katie Ramsey

An investment bank is a financial services company that engages in advisory-based financial transactions on behalf of corporations, organisations and governments. Modern investment banks are offering more and more services and getting more complex.

👨‍🏫Q&A with Citadel Associate Portfolio Manager

Want to know more about trading but not sure who to ask? Or want to know more about what it is like to work at a multinational hedge fund? Who better to answer your questions than an Associate Portfolio Manager at Citadel.

📃Financial Statement Overview with Marc Rudajev

Whether it be investment banking, private equity, asset management or even management consulting, an understanding of the financial statements is a must. Following on from Marc's previous session on how to pitch stocks, it is imperative that you attend this session on an overview of the three financial statements.

🏔 Race to Tech Mountain

Apple has added Chinese state-owned company BOE Technology to its list of premium display suppliers for the latest iPhone, exemplifying China’s capabilities and capacity in the tech space.

💰 The Profitable Pandemic

Covid-19 has made the super-rich richer! The world's 2,365 billionaires enjoyed a $4trn boost to their wealth in the first year. It has allowed billionaires to further amass democracy distorting concentrations of power, wealth and capital.

🌞 Carbonomics COP26 in U.K.

Goldman Sachs believes that the ESG theme will continue to allocate investments into carbon-free alternatives, but green-tech regulations may need to be improved at COP26.

🇬🇧United Kingdom

💸 A third of UK small businesses highly indebted, says BoE: According to a report published by the BoE alongside its quarterly financial stability update, a third of the UK’s small businesses are classed as highly indebted, more than double since before the Covid-19 pandemic.

⏳ New Bank of England chief economist warns of long-lasting inflation: According to recent news, high levels of UK inflation could persist for longer than expected, stemming from the increasing costs of imported goods and international commodity prices, which are expected to be temporary as supply bottlenecks in semiconductors and shipping normalise.

🤝 UK financial firms ditch record number of clients in 2019/20: According to the Financial Conduct Authority’s latest financial crime monitor, businesses exited 761,437 clients in the year from July 2019 to June 2020, more than double the total dropped in 2017/2018.

🇺🇸United States

💊 Merck & Co's oral antiviral treatment for Covid-19: Merck & Co. and its partner Ridgeback Biotherapeutics LP sought emergency use authorization in the U.S. for Molnupiravir, moving the pill closer to becoming the first oral antiviral treatment for Covid-19.

📉 US Job Growth falls: U.S. job growth fell to the slowest pace of the year in September, a sign the Delta variant of the coronavirus and a persistent shortage of workers weighed on the economic recovery.

💸 U.S. Treasury yields at March highs: A wave of selling has brought U.S. Treasury yields closer to their March highs, vindicating predictions that a long summer rally would fade in the face of stubborn inflation and a looming turn toward tighter monetary policies.

🇪🇺Europe

💰 Ireland signs up to global corporate tax deal: According to recent news, Ireland has finally abandoned its cherished 12.5% corporate tax rate and signed up to a minimum 15% global rate that will cost the country about €2bn in lost revenues.

💶 ECB minutes reveal concerns over eurozone inflation forecasts: Recently European Central Bank (ECB) policymakers have argued it is underestimating future inflation, warning about the risk of a regime shift in prices and pushing for a bigger cut in asset purchases than it ultimately decided at its meeting last month.

📈 EU energy chief says gas price surge has no quick fixes: Recently announced, Brussels is powerless in the short term to prevent the gas price surge that is hitting consumers across Europe, asking bloc nations to encourage their own governments to offer targeted national support, including cutting energy taxes.

🇸🇬Asia Pacific

🎌 Japan GDP shrinks 0.9% in August: The contraction - the first in 3 months was driven by a fall in domestic demand. Household consumption fell 0.9% while corporate capital investment declined 1.7% in August from a month ago.

✋ Bank of Korea to reduce the Won's sharp slide: The governor of the Bank of Korea said Tuesday that the central bank is considering intervening in the foreign exchange market in a bid to stem the won's sharp slide against the U.S. dollar.

📈 Japan wholesale inflation hits 13-year high: Japan's wholesale inflation hit a 13-year high in September as rising global commodity prices and a weak yen pushed up import costs, putting pressure on corporate margins and raising the risk of unwanted consumer price hikes.

Philip Morris International Acquires Vectura Group for $1.4 Billion in a Controversial Deal

Acquirer: Philip Morris International Inc. (NYSE: PM)

• Philip Morris International (PMI) was founded in 1847 and is one of the world's leading international tobacco companies
• Its products are sold in over 180 markets, many of which they hold the top position in market share
• 6 of the top 15 international cigarette brands in the world are owned by PMI, with examples including Marlboro, HEETS, Merit and Chesterfield

Target: Vectura Group plc (LON: VEC)

• Vectura Group plc is a British pharmaceutical business, headquartered in Chippenham, England
• The group is a developer of inhaled therapies for the treatment of respiratory diseases
• In 2016 it completed a £441 million merger with Skyepharma, a maker of devices such as asthma inhalers

Rationale

• PMI's business model and strategy are driven by a long-term commitment to the transformation of its business, such as its 'Beyond Nicotine' strategy - PMI aims to provide smoke-free options for consumers and generate more than 50% of its revenue from these products by the end of 2025
• PMI reaffirms commitment to using its resources and expertise to help Vectura grow its business and help PMI achieve its Beyond Nicotine ambitions
• This deal reflects the need to transform to address the impacts of business on society and to move towards a net positive future, taking ESG as a key input into a sustainable strategy
• Investment in ESG links to higher value creation. PMI has a strong, proactive approach to getting this right. Global sustainable investment now tops $30 trillion - up 68% since 2014 and tenfold since 2004