What’s to come with US GDP, Xiaomi, and Amazon as an online pharmacy
The final revision to US GDP for the first quarter of 2018 came in at an adjusted 2.0% annual growth rate, which was below the consensus 2.2% estimate.
While the first quarter period is normally the slowest time of the year, a weakness in consumer spending and poor weather held back growth compounded it. There was, however, one silver lining in the latest data. Investment in IT software, research and development was higher than expected.
Experts are now focusing on analysing the second quarter and most are anticipating a strong return.
Xiaomi, the Chinese mobile phone maker, had high hopes for a dual initial public offering (IPO) that would land it one of the biggest tech company fund raisings. Unfortunately that was earlier stymied by Chinese mainland regulatory concerns, leaving Xiaomi to go ahead with just the Hong Kong listing, due 7th July.
Pre-IPO purchases by major investors such as George Soros, Qualcomm and China Mobile were at the bottom end of the planned HK$17 to HK$22 price, initially valuing the company at $54BN – half its original target. The understanding is that the company’s tight margins on hardware is seen as a bit of a problem with expansion plans – especially in India.
Still, this is just preliminary (grey market) and once the public have access, especially once regulators approve the dual listing on the Shanghai Exchange, we can expect a bigger buzz.
So here we go with another market (deservedly?) disrupted by one of the big tech boys. This time it’s healthcare.
At the 11th hour, Amazon managed to snatch away Walmart’s chance to buy Pillpack by offering a better deal said to be close to US$1BN. Immediately following the news, Amazon’s price rose near to 3% whilst established retail market leaders in over-the-counter medicine, CVS Health and Walgreen Boots Alliance, lost nearly US$11BN in value.
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