December 24, 2019

Outlook for Managed-Care Stocks Brightens Despite 2020 Risks
(Bloomberg) -- The outlook for managed-care stocks next year appears bright after a tumultuous 2019.The rise and fall of Senator Elizabeth Warren in the polls for the 2020 presidential election wrecked havoc on the S&P 500 Managed Care index, which sank as much as 21% in a two-month stretch amid fears private insurers would be disrupted. The index, however, is ending the year with its largest-ever quarterly gain since Bloomberg started tracking the data in 1994. Not only has Warren’s rise in the polls lost momentum, her plans for Medicare for All have moderated.“We’ll probably end up having a more moderate Democratic candidate nominated,” JPMorgan Chase analyst Gary Taylor said in a telephone interview. “You’ve got a status-quo incumbent president, potentially a moderate challenger: whoever wins doesn’t seem to be driving a lot of change.”Taylor reversed his cautious stance on insurers last week, citing diminishing political risks. He also questioned whether a single-payer system, as proposed by some Democratic presidential candidates, could pass Congress given the bipartisan opposition to the proposal.Goldman Sachs analyst Stephen Tanal shared the more optimistic view on insurer stocks next year, pointing out that steep pre-election sell-offs in the sector have historically been followed by outperformance.For now, markets broadly see President Donald Trump as the likely winner of the 2020 presidential election, according to data compiled by the PredictIt option site. Former Vice President Joe Biden pulled ahead of Warren in the site’s Democratic nominee betting last month, followed by Senator Bernie Sanders.“While the outcome of the 2020 election will matter for the stocks, the outcome of private insurance being banned carries low probability while other more moderate proposals do not represent substantial risk,” Tanal wrote last week.Investors believe a second Trump term would be a continuation of the status quo, while Biden’s proposal represents more incremental changes to the Affordable Care Act, which includes creating a “public option.”Still, other analysts are reminding investors that while political fears may be fading, they aren’t going away. Bloomberg Intelligence analyst Glen Losev cautioned that volatility may return next year as the presidential campaign heats up.Here’s what analysts are anticipating for health insurers in 2020:Goldman Sachs, Stephen TanalHealth insurance stocks “can work” despite the policy uncertainty, analysts led by Tanal wrote in a note earlier this month. Goldman’s analysis of the past six election years, excluding 2008, found that the S&P Managed Care Index rose 29% in presidential election years on average, and outperformed the S&P 500 by 20% on average during the same period.The bank sees a 79% chance that either Trump is re-elected or a Democrat, who doesn’t support eliminating private insurers, will win. The analysts pegged the probability of a Trump victory at 44%.On stocks, they recommend “leaning into quality” and reiterated a buy rating on UnitedHealth Group Inc., Humana Inc and Cigna Corp.JPMorgan Chase, Gary TaylorFears about the 2020 election cycle have been “accelerated into 2019,” therefore the outperformance will also be “accelerated into 2020,” Taylor wrote in a note last week.Regarding Medicare for All proposals, “if most Democrats and all Republicans oppose, how can it ever pass?” Taylor also questioned if a public option would be able to pass the Senate without a 60-vote supermajority that “appears improbable even by 2022.” The most likely change appears to be an extension of Medicare that would allow Americans under 65 to buy coverage, which could expand the private Medicare Advantage market.Overall, health insurers’ fundamentals are expected to keep up. Taylor sees a “Goldilocks” scenario in the market, in which a modest increase in patient use of medical care could benefit hospitals without hurting insurers, which are more geographically diversified.JPMorgan recommended overweight-rated Humana, UnitedHealth and HCA Healthcare Inc. as its top picks in 2020.Taylor sees managed-care outperforming its hospital peers and the broader market in the years ahead. However, the sector’s 665% rally over the past decade may be hard to replicate, he said.Bank of America, Kevin FischbeckFischbeck turned more bullish on hospitals recently, saying that the bank’s hospital surveys point to increased patient utilization this year. While that, coupled with a strong flu season, may boost facilities, it could pressure health insurers into the first quarter, he said.“As a result, we think it’s prudent to enter 2020 with a modestly more positive view on the near term results for hospitals and modestly more cautious view on near term upside on MCOs,” he wrote.BofA downgraded Anthem to neutral while boosting HCA to buy earlier this month.What Bloomberg Intelligence SaysHealth insurers should experience volatility in 2020, similar to the previous year, driven by the U.S. presidential race and what changes it may bring. Fundamentals should remain stable in 2020, in our view, but less robust relative to the previous year. Similar to 2019, medical-cost trends are projected to be manageable, with enrollment growth mainly fueled by Medicare. However, rate increases for 2020 (Medicare Advantage and Marketplace) will be below the previous year. The return of the health-insurance fee, while expected, will pressure earnings growth in 2020 and keep generalists on the sidelines.\--Glen Losev, BI health-care analystSee AlsoMuted Year in M&A Ends With a Flurry of Deals, Uncertain 2020Bank Analysts Step to Sunnier Side as 2020 May Not Be So BadAnalyst Who Called WeWork Debacle Sees Risks in Direct ListingsBiotech Analysts See Deals, Drug Data Carrying 2020 PerformanceElection Year Once Again Rekindles Hope for Infrastructure PushChip Analysts Struggle to Get Excited About 2020 After RallyFacebook and Google Face ‘Supercharged’ Regulatory Risk in 2020Airbus Secures Lead Over Boeing as 737 Max Weighs Into 2020After ‘Blood-Spilled’ Year, Pot Firms Brace for Repeat in 2020Small-Caps Set to Retake 2020 Market Lead After Three-Year LagS&P 500 Melt-Up Is So Hot It’s Making Cheerleaders Into SkepticsTo contact the reporter on this story: Tatiana Darie in New York at tdarie1@bloomberg.netTo contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Jennifer Bissell-Linsk, Richard RichtmyerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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Star Wars Director Says It's About Time A Woman Makes A Star Wars Movie
Jan 02, 2024
Oscar-winning documentary filmmaker Sharmeed Obaid-Chinoy is directing an upcoming Star Wars movie that brings back Daisy Ridley in the role of Rey. Obaid-Chinoy will become the first woman to direct a Star Wars film, dating back to the franchise's origins in the 1970s. Speaking about this, Obaid-Chinoy told CNN that she is "very thrilled" to make the movie and create something that is "very special.""We're in 2024 now, and I think it's about time we had a woman come forward to shape the story in a galaxy far, far away," she said.Obaid-Chinoy won Best Documentary, Short Subjects Academy Awards for Saving Face (2012) and A Girl in the River: The Price of Forgiveness (2015).In 2020, Lucasfilm boss Kathleen Kennedy told the BBC that a woman would eventually direct a Star Wars movie, saying that would "absolutely" happen, "without question." Victoria Mahoney was a second unit director on The Rise of Skywalker, but a woman has never claimed a top directing credit on a Star Wars movie.On the TV side of things, The Mandalorian has featured a number of female directors, including Deborah Chow and Bryce Dallas Howard. Chow went on to direct the Obi-Wan TV series, too.Another high-profile franchise that has never had a female director is James Bond. Producer Barbara Broccoli and Skyfall director Sam Mendes have both said they want to see a woman direct a future 007 film.As for Obaid-Chinoy's Star Wars movie, little is known about it apart from the fact that Ridley will come back to play Rey. It is expected that this film will be the first of the three new Star Wars films to come to theaters, possibly releasing in December 2025.According to a report, Peaky Blinders creator Steven Knight is writing the Rey movie, taking over for Damon Lindelof and Justin Britt-Gibson.
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NBA Names Clare Akamanzi CEO Of NBA Africa
Jan 02, 2024 15:29
The NBA named Clare Akamanzi – an accomplished business executive and international trade and investment lawyer – as CEO of NBA Africa. Akamanzi will start her position on Jan. 23, 2024, and report to NBA Deputy Commissioner and Chief Operating Officer Mark Tatum. In this role, Akamanzi will oversee the NBA’s business and basketball development efforts in Africa and will be responsible for continuing to grow the popularity of basketball, the NBA and the Basketball Africa League (BAL) across the continent, including through grassroots basketball development, media distribution, corporate partnerships, and social responsibility initiatives that improve the livelihoods of African youth and families. For the last six and a half years, Akamanzi was CEO of Rwanda Development Board (RDB), where she spearheaded Rwanda’s economic development by enabling private sector growth. Under Akamanzi’s leadership, RDB implemented several business policy reforms and initiatives that led to significant investment and development for the country, including through partnerships with the BAL, Arsenal FC, Paris Saint-Germain FC, FC Bayern Munich and TIME Magazine, among others. “Clare’s business acumen, international experience and familiarity with basketball and the NBA make her the ideal executive to lead our business in Africa,” says Tatum. “NBA Africa and the Basketball Africa League are well-positioned for continued growth, and under Clare’s leadership we believe these initiatives will transform economies, communities and lives across the continent.” “I’ve seen firsthand how sports can positively impact businesses, families and communities in Africa, and the NBA and the BAL are a perfect example of that,” says Akamanzi. “The NBA has done an incredible job growing basketball and the economy around it across the continent, and I’m excited about the enormous opportunities ahead to build on that momentum.” Previously, Akamanzi was Chief Operating Officer of RDB and Head of Strategy and Policy Unit, Office of the President of the Republic of Rwanda. She has extensive international trade, business and diplomatic experience, having previously worked for the Rwandan Government at the World Trade Organization in Geneva, Switzerland and at the Rwandan Embassy in London, England. Akamanzi has worked or studied in seven different countries and holds an honorary LLD from Concordia University in Montreal, Canada, in recognition of her work in Rwanda. She earned a master’s degree in public administration from Harvard University’s Kennedy School of Government in Cambridge, Massachusetts, where she was the recipient of three prestigious awards for academic excellence and distinguished contribution to the community: the Lucius N. Littauer Fellows Award, the Raymond & Josephine Vernon Award and the Robert Kennedy Public Service Award. In addition, Akamanzi holds a Master of Laws degree in international trade and investments from the University of Pretoria in South Africa, and a Bachelor of Laws degree from Makerere University in Kampala, Uganda. Akamanzi has served on several company boards, including the World Health Organization (WHO) Foundation, ECOBANK and Aviation, Travel and Logistics (ATL) company. She was recognized by Forbes as one of Africa’s Top 50 Powerful Women in 2020.
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