Yearly Archives: 2022

News: Scientists scrutinise characteristics of new Omicron sub-variant

 Image Credit:CIPhotos via Getty ImagesStudies are underway to find out the precise characteristics of the latest Covid-19 variant ‘BA.2’. It already accounts for the majority of most recent cases in a number of countries, including India, Denmark and Sweden. But, for French Health Minister Olivier Véran, this sub-variant’s arrival in France is not “a game changer”.BA.2, nicknamed “Omicron’s little brother”, made its first appearance in France a few weeks ago. Mentioned for the first time by Véran during a press conference on January 20, this new Covid-19 derivative is being scrutinised by scientists.Where does BA.2 come from?  BA.2 was first identified in India and South Africa in late December 2021. It is a sub-variant, believed to have emerged from a mutation of Omicron (officially known as BA.1). Omicron itself was born from a mutation of Delta. Other sub-lineages have already been referenced, such as BA.3 or BB.2, but they have attracted less attention from epidemiologists because of the dramatic increase in cases of people who have contracted BA.2.BA.2 has more than 20 mutations, about half of them in the spike protein. This is the famous protein that interacts with human cells and is the key to the virus entering the body.Is this sub-variant as dangerous as Omicron?  The World Health Organization (WHO), which had classified Omicron as a “variant of concern”, does not at this stage distinguish between it and its BA.2 sub-lineage. For his part, Véran said that “as far as we know at the moment, it corresponds more or less to the characteristics we know about Omicron”. It is not “a game changer” at this stage, added Véran in an attempt to reassure.BA.2 is being closely studied by the scientific community, but there is as yet no precise data on its resistance to vaccines or the severity of the cases of Covid-19 it causes. Scientists are beginning to speak out on the subject, while remaining cautious.Virologist Tom Peacock of Imperial College London tweeted that “very early observations from India and Denmark suggest there is no dramatic difference in severity compared to BA.1. This data should become more solid (one way or another) in the coming weeks.”Peacock added that “there is likely to be minimal differences in vaccine effectiveness against BA.1 and BA.2. Personally, I’m not sure BA.2 is going to have a substantial impact on the current Omicron wave of the pandemic.“Several countries are near, or even past the peak of BA.1 waves. I would be very surprised if BA.2 caused a second wave at this point. Even with slightly higher transmissibility this absolutely is not a Delta-Omicron change and instead is likely to be slower and more subtle,” he predicted.For epidemiologist Antoine Flahault, director of the University of Geneva’s Institute of Global Health, infection monitoring should make it possible to test the resistance of BA.2, in particular if people infected with the classic Omicron are again contaminated with the sub-variant. However, it is necessary to have the means to detect contamination with BA.2 in the population, which seems delicate at this stage and which does not seem to be self-evident.Why is BA.2 so difficult to trace?  BA.2 poses certain challenges to scientists, as it is not easy to track. A variation in PCR test protocols and the fact that the type of kit varies from one laboratory to another makes it difficult to reliably identify BA.2, according to Florence Débarre, a biologist at the Institute of Ecology and Environmental Sciences in Paris, interviewed by Libération. “In the UK, the way the tests are carried out does not allow us to distinguish between BA.2 and Delta,” explains Débarre.There is a more accurate but less commonly used tool for tracking variants: genetic sequencing of the virus. This allows the exact presence of this sub-variant to be identified. But in France, for example, only some of the laboratory tests are randomly subjected to this more in-depth and expensive form of analysis. Sequencing also has the drawback of being slow, which means it is not suitable for monitoring a rapidly spreading variant.Where is BA.2 most dominant? The sub-variant has been detected in at least 43 countries on all continents. It is believed to have become the most common variant in a number of countries, including India, Denmark and Sweden. In Denmark, the number of daily cases of Covid-19 has started to rise again, just when the Danes thought they had already reached the peak.The UK Health Security Agency (UKHSA) identified more than 400 cases in Britain in the first 10 days of January.“The Danish authorities have no explanation for this phenomenon, but it is being closely monitored,” said France’s public health agency, which is following the latest developments in Denmark. This “suggests that BA.2 is even more transmissible”, agreed Débarre. In Europe, BA.2 has also been sequenced in the UK, Germany, Belgium, Italy and France, while North America, Asia and Australia have recorded cases, too.Is BA.2 evolving as fast in France?To date, the sub-variant has been detected “at very low levels” in France, says France’s public health agency. “We have an international situation where the Omicron variant is circulating a lot, so it is normal that we observe sub-variants over time,” the agency said on January 21.

 

Image Credit:CIPhotos via Getty Images


Studies are underway to find out the precise characteristics of the latest Covid-19 variant ‘BA.2’. It already accounts for the majority of most recent cases in a number of countries, including India, Denmark and Sweden. But, for French Health Minister Olivier Véran, this sub-variant’s arrival in France is not “a game changer”.

BA.2, nicknamed “Omicron’s little brother”, made its first appearance in France a few weeks ago. Mentioned for the first time by Véran during a press conference on January 20, this new Covid-19 derivative is being scrutinised by scientists.

  • Where does BA.2 come from?  

BA.2 was first identified in India and South Africa in late December 2021. It is a sub-variant, believed to have emerged from a mutation of Omicron (officially known as BA.1). Omicron itself was born from a mutation of Delta. Other sub-lineages have already been referenced, such as BA.3 or BB.2, but they have attracted less attention from epidemiologists because of the dramatic increase in cases of people who have contracted BA.2.

BA.2 has more than 20 mutations, about half of them in the spike protein. This is the famous protein that interacts with human cells and is the key to the virus entering the body.

  • Is this sub-variant as dangerous as Omicron?  

The World Health Organization (WHO), which had classified Omicron as a “variant of concern”, does not at this stage distinguish between it and its BA.2 sub-lineage. For his part, Véran said that “as far as we know at the moment, it corresponds more or less to the characteristics we know about Omicron”. It is not “a game changer” at this stage, added Véran in an attempt to reassure.

BA.2 is being closely studied by the scientific community, but there is as yet no precise data on its resistance to vaccines or the severity of the cases of Covid-19 it causes. Scientists are beginning to speak out on the subject, while remaining cautious.

Virologist Tom Peacock of Imperial College London tweeted that “very early observations from India and Denmark suggest there is no dramatic difference in severity compared to BA.1. This data should become more solid (one way or another) in the coming weeks.”

Peacock added that “there is likely to be minimal differences in vaccine effectiveness against BA.1 and BA.2. Personally, I’m not sure BA.2 is going to have a substantial impact on the current Omicron wave of the pandemic.

“Several countries are near, or even past the peak of BA.1 waves. I would be very surprised if BA.2 caused a second wave at this point. Even with slightly higher transmissibility this absolutely is not a Delta-Omicron change and instead is likely to be slower and more subtle,” he predicted.

For epidemiologist Antoine Flahault, director of the University of Geneva’s Institute of Global Health, infection monitoring should make it possible to test the resistance of BA.2, in particular if people infected with the classic Omicron are again contaminated with the sub-variant. However, it is necessary to have the means to detect contamination with BA.2 in the population, which seems delicate at this stage and which does not seem to be self-evident.

  • Why is BA.2 so difficult to trace?  

BA.2 poses certain challenges to scientists, as it is not easy to track. A variation in PCR test protocols and the fact that the type of kit varies from one laboratory to another makes it difficult to reliably identify BA.2, according to Florence Débarre, a biologist at the Institute of Ecology and Environmental Sciences in Paris, interviewed by Libération. “In the UK, the way the tests are carried out does not allow us to distinguish between BA.2 and Delta,” explains Débarre.

There is a more accurate but less commonly used tool for tracking variants: genetic sequencing of the virus. This allows the exact presence of this sub-variant to be identified. But in France, for example, only some of the laboratory tests are randomly subjected to this more in-depth and expensive form of analysis. Sequencing also has the drawback of being slow, which means it is not suitable for monitoring a rapidly spreading variant.

  • Where is BA.2 most dominant? 

The sub-variant has been detected in at least 43 countries on all continents. It is believed to have become the most common variant in a number of countries, including India, Denmark and Sweden. In Denmark, the number of daily cases of Covid-19 has started to rise again, just when the Danes thought they had already reached the peak.

The UK Health Security Agency (UKHSA) identified more than 400 cases in Britain in the first 10 days of January.

“The Danish authorities have no explanation for this phenomenon, but it is being closely monitored,” said France’s public health agency, which is following the latest developments in Denmark. This “suggests that BA.2 is even more transmissible”, agreed Débarre. In Europe, BA.2 has also been sequenced in the UK, Germany, Belgium, Italy and France, while North America, Asia and Australia have recorded cases, too.

  • Is BA.2 evolving as fast in France?

To date, the sub-variant has been detected “at very low levels” in France, says France’s public health agency. “We have an international situation where the Omicron variant is circulating a lot, so it is normal that we observe sub-variants over time,” the agency said on January 21.

News: WhatsApp plans transfer of data between Android, iOS devices

 WhatsApp chat could now be transferred between Android and iOS devices after the Meta-owned messaging app  plans to roll out a new update. This was revealed by the found source code  of WhatsApp 22.74 Beta for iOS. However, the migration process would not be easy and would require both devices to have the app installed and would likely involve a wired or  private WiFi connection. In comparison, other messaging apps store and sync user data with Google Drive, iCloud or their own cloud service. WhatsApp recently added new features to its desktop and Android apps. The Android app will get new pencil and drawing  tools in a future update, while WhatsApp Desktop will get new chat bubble colors. The desktop app  also gets a new dark blue color that is only visible in dark theme mode.The instant messaging app is also testing a new emoji message reaction info tab and new  message reaction notification settings. WhatsApp feature tracker WABetaInfo said that WhatsApp is introducing new drawing tools to its Android app. You get two pens, including one thinner and one thicker than the existing pen. The app is also working on a blur  tool that may be added  in the future. The new features appeared in the WhatsApp Beta for Android 2.22.5 update, but they are disabled by default. These features are still under development and may be made available to WhatsApp beta testers soon.

whatsapp


 

WhatsApp chat could now be transferred between Android and iOS devices after the Meta-owned messaging app  plans to roll out a new update. 

This was revealed by the found source code  of WhatsApp 22.74 Beta for iOS. However, the migration process would not be easy and would require both devices to have the app installed and would likely involve a wired or  private WiFi connection. In comparison, other messaging apps store and sync user data with Google Drive, iCloud or their own cloud service.

 WhatsApp recently added new features to its desktop and Android apps. The Android app will get new pencil and drawing  tools in a future update, while WhatsApp Desktop will get new chat bubble colors. The desktop app  also gets a new dark blue color that is only visible in dark theme mode.

The instant messaging app is also testing a new emoji message reaction info tab and new  message reaction notification settings. WhatsApp feature tracker WABetaInfo said that WhatsApp is introducing new drawing tools to its Android app. 

You get two pens, including one thinner and one thicker than the existing pen. The app is also working on a blur  tool that may be added  in the future. 

The new features appeared in the WhatsApp Beta for Android 2.22.5 update, but they are disabled by default. 

These features are still under development and may be made available to WhatsApp beta testers soon.

News: Bitcoin Extends Slide, Has Fallen More Than 50% From Record High

 Bitcoin, the largest digital asset, extended its decline Saturday, and has now shed more than 50% from its record high in November.Bitcoin’s decline since hitting the record has wiped out more than $600 billion in market value, and over $1 trillion has been lost from the aggregate crypto market. While there have been much larger percentage drawdowns for both Bitcoin and the aggregate market, this marks the second-largest ever decline in dollar terms for both, according to Bespoke Investment Group.With the Fed’s intentions rocking both cryptocurrencies and stocks, a dominant theme has emerged in the digital-asset space: cryptos have twisted and turned in nearly exactly the same way as equities have.Bitcoin fell as low as $34,042 Saturday, a drop of 7.2%.


 Bitcoin, the largest digital asset, extended its decline Saturday, and has now shed more than 50% from its record high in November.

Bitcoin’s decline since hitting the record has wiped out more than $600 billion in market value, and over $1 trillion has been lost from the aggregate crypto market. While there have been much larger percentage drawdowns for both Bitcoin and the aggregate market, this marks the second-largest ever decline in dollar terms for both, according to Bespoke Investment Group.

With the Fed’s intentions rocking both cryptocurrencies and stocks, a dominant theme has emerged in the digital-asset space: cryptos have twisted and turned in nearly exactly the same way as equities have.

Bitcoin fell as low as $34,042 Saturday, a drop of 7.2%.

News: Russian c.bank proposes banning cryptocurrencies, crypto mining

Representations of virtual cryptocurrencies are seen in this illustration taken November 28, 2021. REUTERS/Dado Ruvic/Illustration/File PhotoRussia’s central bank on Thursday proposed banning the use and mining of cryptocurrencies on Russian territory, citing threats to financial stability, citizens’ wellbeing and its monetary policy sovereignty.The move is the latest in a global cryptocurrency crackdown as governments from Asia to the United States worry that privately operated highly volatile digital currencies could undermine their control of financial and monetary systems.Russia has argued for years against cryptocurrencies, saying they could be used in money laundering or to finance terrorism. It eventually gave them legal status in 2020 but banned their use as a means of payment.In December, the price of bitcoin fell after Reuters reported, citing sources, that Russia’s regulator was in favour of a complete ban on cryptocurrencies. read moreIn a report published on Thursday, the central bank said speculative demand primarily determined cryptocurrencies’ rapid growth and that they carried characteristics of a financial pyramid, warning that bubbles in the market could form, threatening financial stability and citizens.The bank proposed preventing financial institutions from carrying out any operations with cryptocurrencies and said mechanisms should be developed to block transactions aimed at buying or selling cryptocurrencies for fiat, or traditional currencies. The proposed ban includes crypto exchanges.Russians are active cryptocurrency users, the central bank said, with an annual transaction volume of about $5 billion.CRYPTO MININGRussia is the world’s third-largest player in bitcoin mining, behind the United States and Kazakhstan, though the latter may see a miner exodus over fears of tightening regulation following unrest earlier this month. read moreThe central bank said crypto mining created problems for energy consumption. Bitcoin and other cryptocurrencies are “mined” by powerful computers that compete against others hooked up to a global network to solve complex mathematical puzzles. The process guzzles electricity and is often powered by fossil fuels.”The best solution is to introduce a ban on cryptocurrency mining in Russia,” the bank said.In August, Russia accounted for 11.2% of the global “hashrate” – crypto jargon for the amount of computing power being used by computers connected to the bitcoin network.In its report, the central bank pointed to steps taken in other countries, such as China, to curb cryptocurrency activity. It said it would work with regulators in countries where crypto exchanges are registered to collect information about the operations of Russian clients.In September, China intensified its crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.Russia’s regulator said crypto assets becoming widespread would limit the sovereignty of monetary policy, with higher interest rates needed to contain inflation.It said the long-term potential of cryptocurrencies being used for settlements was limited.Meanwhile, the Bank of Russia is planning to issue its own digital rouble, joining the global trend to develop digital currencies to modernise financial systems, speed up payments and counter a potential threat from other cryptocurrencies.

crypto currency
Representations of virtual cryptocurrencies are seen in this illustration taken November 28, 2021. REUTERS/Dado Ruvic/Illustration/File Photo

Russia’s central bank on Thursday proposed banning the use and mining of cryptocurrencies on Russian territory, citing threats to financial stability, citizens’ wellbeing and its monetary policy sovereignty.

The move is the latest in a global cryptocurrency crackdown as governments from Asia to the United States worry that privately operated highly volatile digital currencies could undermine their control of financial and monetary systems.

Russia has argued for years against cryptocurrencies, saying they could be used in money laundering or to finance terrorism. It eventually gave them legal status in 2020 but banned their use as a means of payment.

In December, the price of bitcoin fell after Reuters reported, citing sources, that Russia’s regulator was in favour of a complete ban on cryptocurrencies. read more

In a report published on Thursday, the central bank said speculative demand primarily determined cryptocurrencies’ rapid growth and that they carried characteristics of a financial pyramid, warning that bubbles in the market could form, threatening financial stability and citizens.

The bank proposed preventing financial institutions from carrying out any operations with cryptocurrencies and said mechanisms should be developed to block transactions aimed at buying or selling cryptocurrencies for fiat, or traditional currencies. The proposed ban includes crypto exchanges.

Russians are active cryptocurrency users, the central bank said, with an annual transaction volume of about $5 billion.

CRYPTO MINING

Russia is the world’s third-largest player in bitcoin mining, behind the United States and Kazakhstan, though the latter may see a miner exodus over fears of tightening regulation following unrest earlier this month. read more

The central bank said crypto mining created problems for energy consumption. Bitcoin and other cryptocurrencies are “mined” by powerful computers that compete against others hooked up to a global network to solve complex mathematical puzzles. The process guzzles electricity and is often powered by fossil fuels.

“The best solution is to introduce a ban on cryptocurrency mining in Russia,” the bank said.

In August, Russia accounted for 11.2% of the global “hashrate” – crypto jargon for the amount of computing power being used by computers connected to the bitcoin network.

In its report, the central bank pointed to steps taken in other countries, such as China, to curb cryptocurrency activity. It said it would work with regulators in countries where crypto exchanges are registered to collect information about the operations of Russian clients.

In September, China intensified its crackdown on cryptocurrencies with a blanket ban on all crypto transactions and mining, hitting bitcoin and other major coins and pressuring crypto and blockchain-related stocks.

Russia’s regulator said crypto assets becoming widespread would limit the sovereignty of monetary policy, with higher interest rates needed to contain inflation.

It said the long-term potential of cryptocurrencies being used for settlements was limited.

Meanwhile, the Bank of Russia is planning to issue its own digital rouble, joining the global trend to develop digital currencies to modernise financial systems, speed up payments and counter a potential threat from other cryptocurrencies.

News: EXCLUSIVE TikTok owner ByteDance’s revenue growth slowed to 70% in 2021 – sources

Tik Tok logos are seen on smartphones in front of a displayed ByteDance logo in this illustration taken November 27, 2019. REUTERS/Dado Ruvic/Illustration/File PhotoTikTok owner ByteDance saw its  revenue grow  70% year on year to about $58 billion in 2021,  slower growth than a year earlier as China tightens its regulation of big tech companies.According to two people familiar with the matter the numbers were revealed to a small group of employees at an internal meeting of the social media giant this week .In 2020, the Beijing-based company’s total revenue grew by over 100% to $34.3 billion, Reuters has reported. ByteDance did not immediately respond to a request for comment.Chinese tech companies from Tencent to Alibaba have reported slowing growth amid a sweeping crackdown by the country’s regulators, who have rolled out new rules for how they operate and interact with their users. According to a recent report by market research firm Interactive Marketing Lab Zhongguancun, ByteDance held its second position in China’s online advertising market last year with a 21% market share.The number one position was still held by e-commerce giant Alibaba Group (9988.HK), and third place went to gaming giant Tencent Holdings (0700.HK), according to the report.The overall growth of online ad sales in China declined to 9.3% in 2021 from 13.8% a year earlier, the report says.Tech news website The Information last November reported that ByteDance’s 2021 revenue was on track to rise about 60% to 400 billion yuan ($63.07 billion).ByteDance is one of the world’s biggest private tech companies with recent trades in the private-equity secondary market valuing it at about $300 billion, Reuters has reported.Following Beijing’s antitrust efforts, ByteDance has recently been downsizing its powerful investment arm. read moreIn November, ByteDance reorganised itself into six business units in its biggest organizational change since ByteDance founder Zhang Yiming said in May he would step down as CEO. Besides TikTok, ByteDance’s other apps include its Chinese equivalent Douyin, news aggregator Jinri Toutiao and video-streaming platform Xigua.In 2021, users spent approximately $2.3 billion in TikTok and the iOS version of Douyin, a 77% jump year-over-year, according to app tracker Sensor Tower. 

tiktok
Tik Tok logos are seen on smartphones in front of a displayed ByteDance logo in this illustration taken November 27, 2019. REUTERS/Dado Ruvic/Illustration/File Photo

TikTok owner ByteDance saw its  revenue grow  70% year on year to about $58 billion in 2021,  slower growth than a year earlier as China tightens its regulation of big tech companies.

According to two people familiar with the matter the numbers were revealed to a small group of employees at an internal meeting of the social media giant this week .

In 2020, the Beijing-based company’s total revenue grew by over 100% to $34.3 billion, Reuters has reported. ByteDance did not immediately respond to a request for comment.

Chinese tech companies from Tencent to Alibaba have reported slowing growth amid a sweeping crackdown by the country’s regulators, who have rolled out new rules for how they operate and interact with their users. 

According to a recent report by market research firm Interactive Marketing Lab Zhongguancun, 

ByteDance held its second position in China’s online advertising market last year with a 21% market share.

The number one position was still held by e-commerce giant Alibaba Group (9988.HK), and third place went to gaming giant Tencent Holdings (0700.HK), according to the report.


The overall growth of online ad sales in China declined to 9.3% in 2021 from 13.8% a year earlier, the report says.


Tech news website The Information last November reported that ByteDance’s 2021 revenue was on track to rise about 60% to 400 billion yuan ($63.07 billion).


ByteDance is one of the world’s biggest private tech companies with recent trades in the private-equity secondary market valuing it at about $300 billion, Reuters has reported.


Following Beijing’s antitrust efforts, ByteDance has recently been downsizing its powerful investment arm. read more

In November, ByteDance reorganised itself into six business units in its biggest organizational change since ByteDance founder Zhang Yiming said in May he would step down as CEO. 

Besides TikTok, ByteDance’s other apps include its Chinese equivalent Douyin, news aggregator Jinri Toutiao and video-streaming platform Xigua.

In 2021, users spent approximately $2.3 billion in TikTok and the iOS version of Douyin, a 77% jump year-over-year, according to app tracker Sensor Tower.


 

News: Microsoft-Activision deal gives merger speculators a new darling

Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/IllustrationHedge funds, which make profits by speculating on precarious takeovers, got a treat this week when Microsoft Corp (MSFT.O) agreed to buy “call of duty” maker Activision Blizzard (ATVI.O) for US$68.7 billion dollars in cash. The transaction requires antitrust laws. Approved in the United States and other major jurisdictions, including the European Union and China. It comes at a time when President Joe Biden’s administration is taking a closer look at large mergers, blaming some of them for raising prices to consumers that are fueling inflation.Activision’s shares ended trading at $82.15 on Wednesday, well below the $95 per share deal price, reflecting concerns that regulators may shoot down a combination that would create the third biggest gaming company, after Tencent and Sony Group Corp (6758.T).This infers a 57% chance of the deal closing, based on Activision’s closing share price of $65.39 before the deal was announced.The wide spread gives investors willing to bet on whether the deal will be completed the opportunity to score double-digit returns. At a time when so-called merger arbitrage strategies have trailed the broader stock market’s returns, it is an attractive but also risky proposition.Last year, merger arbitrage funds returned nearly 10% according to Hedge Fund Research data, beating returns posted in 2020, 2019 and 2018, but trailing the broader S&P 500 stock market’s 27% gain in 2021.For some investors, Aon’s (AON.N) scuttled $30 billion acquisition of Willis Towers Watson (WTY.F) as the U.S. Justice Department sued to block the deal hurt returns.Now they are looking to come back, hoping that this deal will also force competitors into making deals of their own.”The positive outlook for event-driven and merger-arbitrage oriented firms in 2022 has been accelerated with the Microsoft-Activision deal,” said Hedge Fund Research Inc President Ken Heinz.Microsoft and Activision gave themselves until June 2023 to complete the transaction, giving hedge funds months to handicap how regulators will react to Microsoft bundling its Xbox platform with Activision’s popular games, such as World of Warcraft and Diablo.Investors may get hints on the Biden administration’s stance soon as the Federal Trade Commission is expected to weigh in on defense contractor Lockheed Martin’s (LMT.N) planned $4.4 billion acquisition of Aerojet Rocketdyne (AJRD.N) and the Justice Department will decide on healthcare insurer UnitedHealth’s (UNH.N)$13 billion bid for healthcare analytics and technology vendor Change Healthcare (CHNG.O).Coverage finds such as Millennium, Tiesemann consultant and pentwater capital spend a piece of their fusion bets, and many have occupied Microsoft and Activision for some time.Mutual funds The Merger Fund run by Westchester Capital Management and The Arbitrage Funds run by Water Island Capital offer similar strategies.

microsoft
Microsoft logo is seen on a smartphone placed on displayed Activision Blizzard logo in this illustration taken January 18, 2022. REUTERS/Dado Ruvic/Illustration

Hedge funds, which make profits by speculating on precarious takeovers, got a treat this week when Microsoft Corp (MSFT.O) agreed to buy “call of duty” maker Activision Blizzard (ATVI.O) for US$68.7 billion dollars in cash. The transaction requires antitrust laws. 

Approved in the United States and other major jurisdictions, including the European Union and China. It comes at a time when President Joe Biden’s administration is taking a closer look at large mergers, blaming some of them for raising prices to consumers that are fueling inflation.

Activision’s shares ended trading at $82.15 on Wednesday, well below the $95 per share deal price, reflecting concerns that regulators may shoot down a combination that would create the third biggest gaming company, after Tencent and Sony Group Corp (6758.T).

This infers a 57% chance of the deal closing, based on Activision’s closing share price of $65.39 before the deal was announced.

The wide spread gives investors willing to bet on whether the deal will be completed the opportunity to score double-digit returns. At a time when so-called merger arbitrage strategies have trailed the broader stock market’s returns, it is an attractive but also risky proposition.

Last year, merger arbitrage funds returned nearly 10% according to Hedge Fund Research data, beating returns posted in 2020, 2019 and 2018, but trailing the broader S&P 500 stock market’s 27% gain in 2021.

For some investors, Aon’s (AON.N) scuttled $30 billion acquisition of Willis Towers Watson (WTY.F) as the U.S. Justice Department sued to block the deal hurt returns.

Now they are looking to come back, hoping that this deal will also force competitors into making deals of their own.

“The positive outlook for event-driven and merger-arbitrage oriented firms in 2022 has been accelerated with the Microsoft-Activision deal,” said Hedge Fund Research Inc President Ken Heinz.

Microsoft and Activision gave themselves until June 2023 to complete the transaction, giving hedge funds months to handicap how regulators will react to Microsoft bundling its Xbox platform with Activision’s popular games, such as World of Warcraft and Diablo.

Investors may get hints on the Biden administration’s stance soon as the Federal Trade Commission is expected to weigh in on defense contractor Lockheed Martin’s (LMT.N) planned $4.4 billion acquisition of Aerojet Rocketdyne (AJRD.N) and the Justice Department will decide on healthcare insurer UnitedHealth’s (UNH.N)$13 billion bid for healthcare analytics and technology vendor Change Healthcare (CHNG.O).

Coverage finds such as Millennium, Tiesemann consultant and pentwater capital spend a piece of their fusion bets, and many have occupied Microsoft and Activision for some time.Mutual funds The Merger Fund run by Westchester Capital Management and The Arbitrage Funds run by Water Island Capital offer similar strategies.

News: AUSTRIA ADDS A LOTTERY TO COVID VACCINE MANDATE

A doctor vaccinates a person with a dose of the Pfizer-BioNTech COVID-19 vaccine in Vienna, Austria April 26, 2021. REUTERS/Lisi NiesnerAustria’s conservative government said  Thursday it was launching a national lottery to encourage holdouts to get vaccinated against the coronavirus, hours before parliament passed legislation that would introduce a national vaccination mandate. About 72% of the Austrian population is fully vaccinated against COVID-19, one of the lowest rates in Western Europe. “What’s up for grabs in the Vaccine Fleet?” Vouchers!” This is what Federal Chancellor Karl Nehammer said at a press conference  of the social democratic opposition leader Pamela Rendi Wagner, with whom the measure was being negotiated.Nehammer said he wanted there to be a financial reward for getting vaccinated, adding: “We have learned from the past and we have seen that a vaccination lottery is the best possible way to set up such a system.”Members of the public, whether already vaccinated or not, would be entitled to one ticket for each shot they have had – three in total for those who have had their booster shot.Every 10th ticket would win a 500 euro ($568) gift voucher, Nehammer said, adding it would cost up to 1 billion euros. He later added on Twitter that the vouchers could be used in “retail, tourism, hospitality, services, culture and sport”.Vice Chancellor Werner Kogler said the aim was to support Austrian businesses and avoid online retailers as much as possible.

A doctor vaccinates a person with a dose of the Pfizer-BioNTech COVID-19 vaccine in Vienna, Austria April 26, 2021. REUTERS/Lisi Niesner

Austria’s conservative government said  Thursday it was launching a national lottery to encourage holdouts to get vaccinated against the coronavirus, hours before parliament passed legislation that would introduce a national vaccination mandate. 

About 72% of the Austrian population is fully vaccinated against COVID-19, one of the lowest rates in Western Europe. “What’s up for grabs in the Vaccine Fleet?” Vouchers!”

 This is what Federal Chancellor Karl Nehammer said at a press conference  of the social democratic opposition leader Pamela Rendi Wagner, with whom the measure was being negotiated.

Nehammer said he wanted there to be a financial reward for getting vaccinated, adding: “We have learned from the past and we have seen that a vaccination lottery is the best possible way to set up such a system.”

Members of the public, whether already vaccinated or not, would be entitled to one ticket for each shot they have had – three in total for those who have had their booster shot.

Every 10th ticket would win a 500 euro ($568) gift voucher, Nehammer said, adding it would cost up to 1 billion euros. He later added on Twitter that the vouchers could be used in “retail, tourism, hospitality, services, culture and sport”.

Vice Chancellor Werner Kogler said the aim was to support Austrian businesses and avoid online retailers as much as possible.

News: CHEAP VERSION OF MERCK COVID PILL TO BE MADE FOR POORER NATIONS

An experimental COVID-19 treatment pill, called molnupiravir and being developed by Merck & Co Inc and Ridgeback Biotherapeutics LP, is seen in this undated handout photo released by Merck & Co Inc and obtained by Reuters May 17, 2021. Merck & Co Inc/Handout via REUTERSA UN-backed agency has struck a deal with nearly 30 generic drugmakers to make low-cost versions of Merck’s COVID-19 pill molnupiravir for poorer countries, expanding access to a drug seen as a weapon to fight the pandemic. The antiviral drug, which  received emergency use approval in the US in December, reduces hospitalizations and deaths  by about 30% in high-risk patients, according to clinical trials. The agreement, negotiated by the U.N.-backed Medicines Patent Pool (MPP) with Merck, allows 27 generic drugmakers from India, China and other countries in Africa, Asia and the Middle East to manufacture ingredients and the finished drug. The MPP said on Thursday the agreement would see the pill  distributed to 105 least developed countries.The developers of molnupiravir, which together with Merck are the US company Ridgeback Biotherapeutics and Emory University, will not receive royalties from the sale of cheap versions made by generic drug companies as long as COVID-19 is classified as a public health emergency by the World Health Organization (WHO) . “This is a critical step in ensuring global access to a much-needed COVID-19 treatment, and we are confident that with manufacturers  working closely with regulatory authorities, pre-treatments will be rapidly available,” said MPP CEO Charles Gore .Bangladesh’s Beximco Pharmaceuticals, India’s Natco Pharma, South Africa’s Aspen Pharmacare and China’s Fosun Pharma are among the generic drug companies that will manufacture the final product.

An experimental COVID-19 treatment pill, called molnupiravir and being developed by Merck & Co Inc and Ridgeback Biotherapeutics LP, is seen in this undated handout photo released by Merck & Co Inc and obtained by Reuters May 17, 2021. Merck & Co Inc/Handout via REUTERS
A UN-backed agency has struck a deal with nearly 30 generic drugmakers to make low-cost versions of Merck’s COVID-19 pill molnupiravir for poorer countries, expanding access to a drug seen as a weapon to fight the pandemic. 

The antiviral drug, which  received emergency use approval in the US in December, reduces hospitalizations and deaths  by about 30% in high-risk patients, according to clinical trials. 
The agreement, negotiated by the U.N.-backed Medicines Patent Pool (MPP) with Merck, allows 27 generic drugmakers from India, China and other countries in Africa, Asia and the Middle East to manufacture ingredients and the finished drug. 

The MPP said on Thursday the agreement would see the pill  distributed to 105 least developed countries.

The developers of molnupiravir, which together with Merck are the US company Ridgeback Biotherapeutics and Emory University, will not receive royalties from the sale of cheap versions made by generic drug companies as long as COVID-19 is classified as a public health emergency by the World Health Organization (WHO) .

 “This is a critical step in ensuring global access to a much-needed COVID-19 treatment, and we are confident that with manufacturers  working closely with regulatory authorities, pre-treatments will be rapidly available,” said MPP CEO Charles Gore .

Bangladesh’s Beximco Pharmaceuticals, India’s Natco Pharma, South Africa’s Aspen Pharmacare and China’s Fosun Pharma are among the generic drug companies that will manufacture the final product.

News: Tesla investors urge judge to order Musk repay $13 bln for SolarCity deal

 REUTERS/Mike Blake/File PhotoTesla Inc (TSLA.O) shareholders on Tuesday asked a judge  to find that Elon Musk forced the company’s board of directors into a  deal for SolarCity in 2016 and wanted the CEO convicted, the electric vehicle maker one of the largest judgments in history paid $13 billion. “This case was always  about whether the acquisition of SolarCity was a bailout from financial troubles, a bailout orchestrated by Elon Musk,” said Randy Baron, a shareholders’ attorney, at the Zoom hearing.The closing arguments listed the key findings of a 10-day trial in July when Musk spent two days at the stand defending the deal.Lawsuit from union pension funds and wealth managers alleges  Musk forced Tesla’s board of directors to cut the deal to approve for cash -strapped SolarCity, in which Musk was the largest shareholder. Musk has countered that the deal was part of a decade-old master plan to create a vertically integrated company that would transform energy generation and consumption with SolarCity’s roof panels and Tesla’s cars and batteries. Evan Chesler, one of Musk’s attorneys, said at the hearing that the deal was not a bailout and that SolarCity is far from insolvent and that its finances are similar to those of many high-growth companies.”They were building billions of dollars of long-term value,” Chesler said of SolarCity.The all-stock deal was valued at $2.6 billion in 2016, but since that time Tesla’s stock has soared.Shareholder attorney Lee Rudy urged Vice Chancellor Joseph Slights of Delaware’s Court of Chancery to order Musk return the Tesla stock he received, which would be worth around $13 billion at its current price.Musk said in court papers such an award would be at least five times the largest award ever in a comparable shareholder lawsuit and called it a “windfall” for plaintiffs.Rudy said Slights should consider Musk’s contempt for the deposition and trial process, in which he repeatedly clashed with and insulted shareholder attorneys.”It would be a windfall for Elon Musk if he got to keep shares he never should have gotten in the first place,” Rudy said.Chesler called the request to order Musk to return the stock from the deal “preposterous” and said it ignored five years of unprecedented success at Tesla.Tesla’s stock was down 1% at around $1,040in afternoon trade.Tesla acquired SolarCity as the electric vehicle maker was approaching the launch of its Model 3, a mass-market sedan that was critical to its strategy. Shareholders allege the deal was a needless distraction and burdened Tesla with SolarCity’s financial woes and debt.Shareholders claim that despite owning only 22% of Tesla, Musk was a controlling shareholder due to his ties to board members and domineering style. If plaintiffs can prove this, it increases the likelihood that the court will conclude the deal was unfair to shareholders.Musk’s lawyers said the celebrity entrepreneur had no authority to fire directors or control their salaries and withdrew from price negotiations in the SolarCity deal.”Without Elon Musk, Tesla couldn’t exist, let alone be worth $1 trillion,” said Vanessa Lavely, Musk’s attorney. “That doesn’t make him a controller. This makes him a highly effective CEO. Slights ended the hearing by saying he expects to rule in about three months. He said last week that he intends to retire in the next few months. And a request for related shareholders contesting Musk’s record pay package was transferred from Slights to another judge.Source: Reuters

 

REUTERS/Mike Blake/File Photo


Tesla Inc (TSLA.O) shareholders on Tuesday asked a judge  to find that Elon Musk forced the company’s board of directors into a  deal for SolarCity in 2016 and wanted the CEO convicted, the electric vehicle maker one of the largest judgments in history paid $13 billion.

“This case was always  about whether the acquisition of SolarCity was a bailout from financial troubles, a bailout orchestrated by Elon Musk,” said Randy Baron, a shareholders’ attorney, at the Zoom hearing.

The closing arguments listed the key findings of a 10-day trial in July when Musk spent two days at the stand defending the deal.Lawsuit from union pension funds and wealth managers alleges  Musk forced Tesla’s board of directors to cut the deal to approve for cash -strapped SolarCity, in which Musk was the largest shareholder.

Musk has countered that the deal was part of a decade-old master plan to create a vertically integrated company that would transform energy generation and consumption with SolarCity’s roof panels and Tesla’s cars and batteries.
Evan Chesler, one of Musk’s attorneys, said at the hearing that the deal was not a bailout and that SolarCity is far from insolvent and that its finances are similar to those of many high-growth companies.

“They were building billions of dollars of long-term value,” Chesler said of SolarCity.


The all-stock deal was valued at $2.6 billion in 2016, but since that time Tesla’s stock has soared.


Shareholder attorney Lee Rudy urged Vice Chancellor Joseph Slights of Delaware’s Court of Chancery to order Musk return the Tesla stock he received, which would be worth around $13 billion at its current price.


Musk said in court papers such an award would be at least five times the largest award ever in a comparable shareholder lawsuit and called it a “windfall” for plaintiffs.


Rudy said Slights should consider Musk’s contempt for the deposition and trial process, in which he repeatedly clashed with and insulted shareholder attorneys.


“It would be a windfall for Elon Musk if he got to keep shares he never should have gotten in the first place,” Rudy said.


Chesler called the request to order Musk to return the stock from the deal “preposterous” and said it ignored five years of unprecedented success at Tesla.


Tesla’s stock was down 1% at around $1,040in afternoon trade.


Tesla acquired SolarCity as the electric vehicle maker was approaching the launch of its Model 3, a mass-market sedan that was critical to its strategy. Shareholders allege the deal was a needless distraction and burdened Tesla with SolarCity’s financial woes and debt.


Shareholders claim that despite owning only 22% of Tesla, Musk was a controlling shareholder due to his ties to board members and domineering style. If plaintiffs can prove this, it increases the likelihood that the court will conclude the deal was unfair to shareholders.


Musk’s lawyers said the celebrity entrepreneur had no authority to fire directors or control their salaries and withdrew from price negotiations in the SolarCity deal.

“Without Elon Musk, Tesla couldn’t exist, let alone be worth $1 trillion,” said Vanessa Lavely, Musk’s attorney. “That doesn’t make him a controller. This makes him a highly effective CEO.
Slights ended the hearing by saying he expects to rule in about three months. He said last week that he intends to retire in the next few months. And a request for related shareholders contesting Musk’s record pay package was transferred from Slights to another judge.

Source: Reuters

News: WHO says no evidence healthy children, adolescents need COVID-19 boosters

Photo Credit: Fabrice Coffrini | ReutersAt present, there is no evidence  that healthy children and adolescents need booster doses of the COVID-19 vaccine,  World Health Organization chief scientist Soumya Swaminathan said on Tuesday. Speaking at a news briefing, she said that while there seems to be some waning of vaccine immunity over time against the fast-spreading Omicron variant of the coronavirus, more research is needed to determine who needs a booster shot.”There is currently no evidence  that healthy children or heavy adolescents need boosters. No evidence at all,” he said. Israel began offering boosters to children as young as 12, and the U.S. Food and Drug Administration earlier this month authorized the use of a third dose of the Pfizer and BioNTech COVID-19 vaccine for children aged 12 and 15. Last week, Germany became the latest country to recommend that all children between the ages of 12 and 17 receive a COVID-19 booster shot. Hungary did it too.Swaminathan said the WHO’s top group of experts would meet later this week to consider the specific question of how countries should consider giving boosters to their populations.“The aim is to protect the most vulnerable, to protect those at highest risk of severe disease and dying. Those are our elderly populations, immuno-compromised people with underlying conditions, but also healthcare workers,” she said. 

Photo Credit: Fabrice Coffrini | Reuters

At present, there is no evidence  that healthy children and adolescents need booster doses of the COVID-19 vaccine,  World Health Organization chief scientist Soumya Swaminathan said on Tuesday. 

Speaking at a news briefing, she said that while there seems to be some waning of vaccine immunity over time against the fast-spreading Omicron variant of the coronavirus, more research is needed to determine who needs a booster shot.

“There is currently no evidence  that healthy children or heavy adolescents need boosters. No evidence at all,” he said. 

Israel began offering boosters to children as young as 12, and the U.S. Food and Drug Administration earlier this month authorized the use of a third dose of the Pfizer and BioNTech COVID-19 vaccine for children aged 12 and 15. 

Last week, Germany became the latest country to recommend that all children between the ages of 12 and 17 receive a COVID-19 booster shot. Hungary did it too.

Swaminathan said the WHO’s top group of experts would meet later this week to consider the specific question of how countries should consider giving boosters to their populations.

“The aim is to protect the most vulnerable, to protect those at highest risk of severe disease and dying. Those are our elderly populations, immuno-compromised people with underlying conditions, but also healthcare workers,” she said.



 

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