Amazon Lands Itself in the Middle East; Price of New Skin Drug Will Make Your Skin Crawl; Spoiler Alert: Uber’s Not So Diverse

Just Souq it up…

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In case you were wondering what Amazon’s been up to lately, here’s a hint: It’s got nothing to do with drones. Sort of. Instead, the online marketplace just agreed to scoop up Souq.com, the Dubai-based Amazon of the Middle East, and apparently the largest online retailer in the region. While we don’t know the exact numbers involved in the deal, we do know that 1.) There was one other bid by a billionaire from Dubai and 2.) It’s apparently the biggest tech merger & acquisition in the Arab world. Ever. At least according to somebody at Goldman Sachs. But I guess Goldman Sachs would know something like that. Rumor has it that although the Dubai billionaire, Mohamed Alabbar, counter-offered $800 million for the company, Amazon will be paying even less. What’s super-interesting about that factoid is that last year Souq.com was valued at around a billion following a funding round.

What a bargain…

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The good news is that the FDA actually approved a new treatment for severe eczema. The bad news is that it costs $37,000 a year to get it. But for some it might be worth every penny considering that one-third to two-thirds of the patients who used the drug actually regained clear or almost-clear skin.  Manufactured by Frace’s Sanofi SA and New York’s Regeneron Pharmaceuticals, the just approved drug, called Dupixent, is actually injected under the skin every two weeks, unlike previous eczema treatments, which are typically topical and often involve steroids and antihistamines. The injection apparently contains an antibody that does something to basically scare off the skin condition condition. Sort of. In any case, while $37,000 seems like a ridiculous amount of money to pay – because it is – consider that it’s still lower than Humira and Enbrel, drugs that also treat skin ailments. However, Wall Street didn’t look at it that way and instead sent shares of Regeneron down upon news of the five-figure price tag.

 

Well, what did you expect?

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Uber finally finally released its very first diversity report following a slew of issues, a ton of criticism, not to mention claims of sexual discrimination. But the only surprising thing about the report is that there weren’t any.  Surprises, that is. Sure the company employees minority groups. Unfortunately, those groups aren’t as well-represented at the top. The ride-hailing app employs about 12,000 people globally, and about 64% of them are males. Of that 12,000 figure, 36% are women and 22% of those women hold higher-level positions, while 15% of them work in the company’s tech areas. In the U.S., however, the numbers are almost embarrassing as blacks hold just 2.3% of leadership roles, while Hispanics represent .8% of those positions  – just not on the technical side.  And just to be clear, those percentages are not exclusive to Uber, but rather are fairly representative of Silicon Valley tech companies. Except now Uber pledged to throw $3 million at the problem in order to find solutions to make those numbers...better.

Bugging Out Over VW Settlement; Trump Thinks He Can Do It All; Time to Buy a Keurig?

Buggin’ out…

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VW is getting set to pony up some $4 billion in settlement money after agreeing to plead guilty to charges of conspiracy to defraud the U.S. government and obstruct a federal investigation. To break it down, the company will cough up $2.8 billion in criminal fines and another $1.5 billion in civil penalties. With that settlement, the company achieves the dubious distinction of having the largest penalty ever levied by the U.S. government against an automaker. Pretty classy for Europe’s largest car manufacturer. But I guess that’s what happens when you get busted for trying to cheat on emissions tests. VW had initially insisted that the scheme was the work of a few isolated employees. But now, lo and behold, six German execs are now facing charges, and the arrests probably won’t stop there. While Oliver Schmidt was already arrested in Florida this week, the others are still biding their time in Germany, with no guarantee that they’ll meet with justice courtesy of the United States judicial system. And even though VW swears it’s changed its naughty ways and is cooperating fully with authorities, it’ll still be watched for the next three years – just to be sure. Shares of the company rose as much as 4% today, it’s highest price since the scandal first erupted. But that doesn’t mean that this unfortunate episode has come to an end as there are still plenty of other countries that could also very well pursue action against Volkswagen.

Not so sure about this…

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Looks like Trump’s not going anywhere. Not even away from his business empire. The President-elect, in a news conference today, discussed that he will not be selling off his global empire and put his liquid assets in a blind trust. However, his assets will still be placed into a different type of trust that will keep him from making decisions that would personally benefit him.  According to Trump’s flack, a blind trust wasn’t even a realistic option for Trump anyway since real estate can’t just be sold off so easily as stocks and other assets can.  Instead, he will remove himself from all business dealings, resign from all his positions and hand-off control to his two sons. It’s just not clear when he’ll actually stick to that plan since just this weekend he turned down a $2 billion development deal in Dubai. Speaking of which, his company will not enter into any new business deals abroad until after his term ends. How gallant of him. Domestic deals, however, are a whole other story. They’ll be permitted as long as they are met with approval from an ethics adviser hired to work specifically for the Trump organization. See how that works out? Ethics watchdogs aren’t down with Trump’s plan since they feel it will do little – if nothing – to prevent conflicts of interest. But ethics or not, the fact is, a President is not required by law to even avoid conflicts of interest. Donald Trump also stated that he could run both the White House and his business except that he won’t because it doesn’t look nice. Ya think?

Are you ready for this jelly?

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Savor that cup of coffee now because it’s about to get a bit more expensive. Well, that’s assuming it’s packaged coffee. The biggest coffee roaster in the U.S., J.M. Smucker Co – yes, the one that makes jelly – decided to raise the prices on its packaged coffees, including its Folgers, Dunkin’ Donuts and Cafe Bustelo brands. I did say a bit because that increase, on average, will only be about 6%, since the costs involved in producing green coffee have gone up as well.  But don’t bother blaming the jelly company execs. Blame Arabica coffee futures. Or rather, Mother Nature, since coffee futures have gone up 30% in the last year due to drought conditions in several coffee-producing regions. In all fairness, J.M. Smucker Co. actually decreased the price of its coffee last May courtesy of a Brazil oversupply. So I suppose things are just kind of even-ing out. Incidentally, K-cup pods are excluded from the price increase. So if you haven’t bought one of those nifty machines yet, now might be a good time to scoop one up.