Categories
Business

Chocolate gross sales are booming this Valentine’s Day, as shoppers keep near dwelling

Ferrero Rocher chocolate and hazelnut confectionery in a supermarket.

Alex Tai | SOPA pictures | LightRocket | Getty Images

Reservations aren’t required this Valentine’s Day as the pandemic is making romantic dinners less likely. But chocolate will still be an important part of the celebration as people express their love not only for their romantic partners, but also close family members and friends.

According to the National Confectioner’s Association, 86 percent of Americans plan to buy chocolate or candy for Valentine’s Day this year.

“It will likely look a little different in 2021 than other years, but surely friend appreciation will still be very meaningful this season,” said Phil DeConto, vice president of category management and customer insights at the chocolate manufacturer Ferrero in an interview with CNBC.

According to a survey by the National Retail Federation and Prosper Insights & Analytics, spending is expected to decrease this Valentine’s Day. Consumers spend an average of $ 165 on gifts and celebrations this year. That’s $ 32 less than last year, mostly because people are mostly partying at home.

However, chocolate sales, especially for premium products, have increased. According to DeConto, total chocolate consumption has increased 4.7% in the last 52 weeks, and premium chocolate is double what it was before. The trend continues until Valentine’s Day.

“Premium chocolate could play a role in ensuring normalcy or a disruption in mental health,” Deconto said. Ferrero owns brands like Kinder, Nutella and Butterfinger, but also has premium products like Ferrero’s Golden Gallery.

With these different confectionery brands in its portfolio, Ferrero can appeal to a wide range of consumers during the holidays outside of traditional romantic relationships. For example, parents can surprise children with a new type of box of chocolates, while themed assortment bags are suitable for a Galentine Day celebration with friends. (Galentine Day, usually celebrated on February 13, was popularized by the sitcom Parks & Recreation more than a decade ago, and continues to have a following.)

Ferrero also saw increased demand for its Nutella chocolate hazelnut spread as consumers cook breakfast at home. DeConto said people are buying bigger jars of Nutella and more units.

“People make fewer trips, but when they are out, those trips count and the two possibilities, as we saw, were that the overall size of the basket increased and the size of the unit that people were buying increased.” he said.

Categories
Entertainment

A Critic and a Pianist, Shut however Not Fairly Mates

The pianist Peter Serkin made his New York debut when he was only 12 years old. His real introduction to the public – as an artist of his special merits, not just as the son of the well-known pianist Rudolf Serkin – took place six years later, in 1965, 1965. with his recording of Bach’s “Goldberg” variations.

Critics praised the lively, elegant and clear game. Many pointed to the extraordinary maturity of this teenager’s interpretation.

I was very impressed by this recording. Just a year younger than Serkin, I was a serious pianist at the time, planning on making music in college. But our backgrounds couldn’t have been more different. There were no musicians in my family; My talent and passion seemed to come from nowhere. Serkin had inherited the mantle of classical music as a birthright for generations and received the best education imaginable.

Even so, I felt that he and I were kindred spirits, though I couldn’t explain why at the time. When I hear this remarkable Bach recording today, I better understand what touched me so deeply.

From his relaxed lyrical design of the opening theme to his quiet but subtly restrained playing of the first variation of the jump, he approached this impressive masterpiece with unspoiled directness and sincerity. His performance combined an almost spiritual equilibrium with subtle joy. He sent the brilliant variations clearly and neatly, without a trace of conspicuousness.

This breakthrough was reissued as part of a 35 disc box set of his full recordings on the RCA label (and some on Columbia) made during the first three decades of his career. It was released last year, just four months after he died of pancreatic cancer in February. The collection offers a large selection of solo pieces, chamber works and concerts by Beethoven, Berio, Chopin, Mozart, Takemitsu, Stravinsky, Schönberg and others – in exploratory, clear, often intoxicating performances. I did not know some of these recordings; I hadn’t heard others in years. The set has strong memories of Peter – how I met him – and revived his great artistry and the intersection of our lives and professions.

Since his recordings kept coming out after these “Goldberg” variations, I eagerly bought them and followed Peter’s journey. There was his spacious, searching, yet seductively playful account of Schubert’s late, long Sonata No. 18 in G, which was recorded during the same sessions as Bach but published in 1966. There were exciting collaborations with Seiji Ozawa and the Chicago Symphony Orchestra in Bartok’s First and Third Piano Concertos and Schönberg’s Piano Concerto, a piece that overwhelmed me at the time. The Schönberg album from 1968 contained the five piano pieces (op. 23). Peter’s convincing performance inspired me to learn this job, which I ended up doing, with tremendous effort, to graduate from college.

Rudolf Serkin was a childhood hero to me and I will always appreciate his impressive art. But in my early 20s, a generation change brought me to solidarity with his son. Peter seemed to be the unimpressed pianist leader of our emerging generation, claiming classical music on his own terms. I wanted to meet him, hang out. I had a hunch that we could become friends.

However, we didn’t meet until the summer of 1987, just a few weeks before he turned 40. Until then, I was a freelance critic for The Boston Globe, and he taught young artists at Tanglewood Music Center. He was known to be interview-shy, burned by the derogatory reactions of critics in the 1970s when he wore a ponytail and a thread-like goatee. often performed with Nehru shirts and love pearls; and despised the virtuoso touring route, which he compared to a “monkey who performs his trained action again and again with the same pieces”.

In 1973 he and three like-minded young musicians founded Tashi, an ensemble that focused on contemporary music. These adventurous players put on dozens of intriguing performances and made a best-selling recording of their signature track, Messiaen’s mystical “Quartet for the End of Time”.

Peter wanted to shake up classical music, which in his opinion was far too indebted to the old repertoire and traditional protocols. Even so, he found it difficult to keep himself from being seen as “the reluctant ambassador of the counterculture for the pure concert world,” as critic Donal Henahan put it in a 1973 profile in the New York Times. And he was fed up with being asked about his complicated relationship with his father.

I knew all of this in our interview and was a little careful. But from the moment we met, I felt good. We sat on the grass under the sun on the Tanglewood grounds and talked for a few hours about everything: his memories of how intensely he experienced music as a child; his trips to India, Thailand and Mexico in the early 20s when he stopped performing and even practicing for a while to “find out who I am without her”; the satisfaction he gained that summer in coaching a new generation of musicians who seemed to share his innate curiosity about new music; and his enthusiasm for an ambitious project he was planning to tour a program of 11 new works written for him. It also learned to deal with difficult fathers. We met the following week in Tanglewood – which, as we would have said at the time, was really cool.

At that point, however, our relationship was defined and, to some extent, constrained by our respective roles as performer and critic. (Actually, I was still performing actively at the time, and Peter wanted to know everything about my work and hear some concert recordings that I shared with him.) Had I not been a critic, we might have developed a real friendship; Had I not been a critic, I might never have met him. In a way, I already felt that I could do more for the music and for Peter by being an informed observer of his remarkable work.

For years after that first meeting, he and I spoke on the phone occasionally, exchanged emails, and sometimes found opportunities to meet. He was so fond of teaching in Tanglewood that summer that he bought a house in the Berkshires and lived there with his wife and children. He invited me to visit. Right now I wish I had accepted. But even he understood, I think, that it was better to keep a certain amount of professional distance.

People may assume that, as a critic, there is no way I can be objective about an artist whom I feel very much about. But just as a writer can tell the truth about problematic aspects of a manuscript to a friend of a writer, perhaps I, who admired Peter’s play so much, could see when his take on a piece wasn’t quite clicking.

For example, the new collection includes three albums of Chopin works recorded between 1978 and 1981 when Peter revisited a composer he was not known for performing. He brought out the ruminant, poetic elements of the music, even in mazurkas and waltzes that might seem smooth on the surface. His recording of the 14-minute polonaise fantasy, one of Chopin’s most elusive and original scores, is overwhelming. Peter makes the piece seem like a dark, restless, fantastic reflection on the deeper legacy of the polonaise, a defining dance of Chopin’s war-torn homeland.

But he also applied this thoughtful approach to Andante Spianato and Grande Polonaise Brillante with less success. This was perhaps the next step Chopin took to write an unabashed virtuoso showpiece. I understand what Peter wanted and it’s fascinating. But the performance is so testing it feels a little grounded. You want the effortless glare of a Vladimir Horowitz.

Peter’s extraordinary recording of Messiaen’s “Vingt Regards sur l’Enfant-Jésu” from 1973 remains final for me. This two-hour work, which consists of 20 pieces, presents astonishing technical challenges, as the music alternates between meditative timelessness and exuberant, almost frenzied spirituality, which is traversed by the calls of birds. Peter took it on tour, played it completely and by heart, sometimes accompanied by atmospheric lighting. When we first spoke, he remembered Messiaen hearing him play the piece. After that the composer was “really too nice,” said Peter: “He told me that I respect the score, but if I don’t, it’s even better.”

The album that perhaps meant the most to Peter was “… in real time” with works written for him, including some of the 11 scores he had on this commissioned program from Henze, Berio, Takemitsu, Kirchner, Alexander Göhr and Oliver Knussen and Peter’s childhood friend Peter Lieberson played. He lets the swirling busyness and the sour sounds of Berio’s “fire piano” sound like a crackling fire; He dives under the surging grace and tenderness of Lieberson’s “Breeze of Delight” to reveal the eerie pull of the music.

Peter began teaching at the Bard College Conservatory of Music in 2005 and loved working with the curious students that the program attracted. Even while enduring debilitating cancer treatments, he continued to try to teach and play. In an email to me in April 2019, he wrote of “terrible pain and exhaustion, much worse than last time”. Nevertheless, he had forced himself to attend a performance of Brahms’ piano quartet in C minor because the cellist Robert Martin, a close colleague, was playing his final concert as director of the Conservatory. “It went well enough,” he wrote. In fact, it’s a profound performance hit, as a video makes clear.

I had agreed to visit him at his home near Bard in August, on my way back to New York, after covering Tanglewood’s contemporary music festival for a few days. But on the morning of our scheduled meeting, Peter wrote that he was miserable. The next day he texted me again to tell me how sad he was that he canceled.

“I brought out a little four-handed music in case you wanted to play, but I think I’ll bring it back down now for possibly another time,” he wrote.

There was no other time. We tried to reschedule, but his health was too shaky. The last email he sent me three months before he died was a brief reply to a message I had sent. “Yes, we are good friends,” he said, “and I look forward to seeing you.”

Friends in our own way indeed.

Categories
World News

UK Lockdown: Colleges, Schools to Shut as Coronavirus Variant Rages

LONDON – Prime Minister Boris Johnson imposed a tough new national lockdown on Monday as the UK’s desperate race to vaccinate its population could be overtaken by a fast-spreading variant of the coronavirus that was on track to overwhelm the country’s beleaguered hospitals .

After several days of alarmingly high and escalating case numbers, Mr Johnson ordered schools and colleges in England to close their doors and switch to distance learning. He appealed to the British to stay home for all but a few necessary purposes, including essential work and the purchase of food and medicine.

The nationwide restrictions, officials warned, will remain in place until at least mid-February.

The decision was a new setback for Mr Johnson as the arrival of two vaccines after nine months and severe criticism of his handling of the pandemic appeared to offer a way out of the crisis.

On the day the first doses of a vaccine developed by AstraZeneca and Oxford University were given, the good news was drowned out by the reintroduction of the kind of sweeping restrictions put in place last spring when the pandemic first threatened to spiral out of control.

In the past few weeks, the new, highly transmissible variant of the virus has caught on in London and the south-east of England, causing the number of cases to rise alarmingly to nearly 60,000 a day and putting hospitals under acute pressure.

On Sunday, Mr Johnson admitted that current controls of daily living were inadequate. However, the first announcement of a full lockdown came not from England but from Scotland, where the first minister, Nicola Sturgeon, has consistently moved further and faster to tame the pandemic.

In Edinburgh, Ms Sturgeon said that mainland Scotland people must be required to stay at home and work from wherever possible, while places of worship would be closed and schools were largely operated by distance learning.

Mr Johnson followed on Monday evening to announce the lockdown in England that many predicted.

“It is clear that we must do more together to get this new variant under control while our vaccines are rolled out,” Johnson said in a televised address.

While the coming weeks may be some of the toughest, he believed Britain “is entering the final phase of the struggle because with every push that goes into our arms we tilt the odds against Covid and in favor of the British people. ”

The people of England have been encouraged to comply with the new rules immediately, although some of the new restrictions won’t take effect until Wednesday morning and a vote in Parliament will likely take place, specifically recalled on the same day.

Ministers had celebrated the deployment of the AstraZeneca vaccine, which is not only cheaper than Pfizer-BioNTech’s but also much easier to store. They said it could help turn the tide in Britain’s fight against the virus.

However, the UK is in a race to roll out its mass vaccination program before its overloaded health service is overwhelmed by the new variant. Covid-free treatment is already being postponed again, and pictures of ambulances piling up in some hospitals’ parking lots last week highlighted the challenge facing the country’s tired health workers.

Updated

Jan. 6, 2021, 3:48 p.m. ET

The government has raised its Covid warning for the first time and warns of a “material risk that health services will be overwhelmed”. There were more than 26,000 Covid-19 patients in hospitals as of Monday, up 30 percent from the previous week, Johnson’s office said. And cases are increasing rapidly across the country, it said.

Mr Johnson has set an ambitious goal for the country’s vaccine campaign: to have a first dose of the vaccine to the most vulnerable populations by mid-February. If the government does this, the restrictions could be lifted.

Most Britons are already exposed to severe restrictions in everyday life. Non-essential shops, pubs and restaurants are already closed in much of England, where those who live by the strictest rules in the areas are not allowed to mix between households.

Now all parts of England will be under these curbs and schools will be closed to most students.

However, some restrictions will be a little less onerous than those imposed last March when the virus marched relentlessly across Europe and the country was first put into lockdown.

This time around, people in England are still allowed to meet someone else to exercise together outside, and the places of worship remain open, as are the playgrounds. Elite professional football games continue, although some games had to be canceled recently after players became infected.

For critics, developments on Monday showed Mr Johnson’s tendency to postpone decisions until the last moment, in part to balance public health issues with concerns of many of his ruling Conservative Party about the devastating economic impact.

On Sunday, after Mr Johnson used a BBC interview to warn that new restrictions were likely, opposition Labor Party leader Keir Starmer called for immediate new national restrictions.

But on Monday morning, Mr Johnson initially appeared to be resisting being forced to take a quick decision, insisting that the government still measure the impact of the toughest restrictions already in place on a hospital visit. He acknowledged that “tough” weeks were ahead and said there was “no question” that tougher measures would be announced “in due course”.

Even within his own Conservative Party, pressure mounted when a senior lawmaker and former health minister, Jeremy Hunt, wrote on Twitter that it was “time to act” and “schools, close borders and immediately ban any confusion. ”

The main lesson from dealing with the pandemic was that “Countries that act early and act decisively save lives and quickly get their economies back to normal,” Hunt said.

Medical experts said that given the rapid spread of the new variant, Mr Johnson had no choice but to take more draconian measures. Some said the prime minister was already behind the curve given the number of cases and hospital admissions skyrocketed over the past week.

“He’s running late,” said Devi Sridhar, director of the global public health program at the University of Edinburgh. “The situation is bad with the new variant. You have to manage boundaries, pause schools, and stop mixing between households. “

The government’s scientific advisory body known as SAGE recommended on December 22nd that the UK consider a national lockdown and close schools and universities. The variant is on the way to become dominant in many parts of the country.

New infections have risen to almost 60,000 per day, twice as many as a few weeks ago.

Hospital admissions in London have doubled every week since early December, wrote Christina Pagel, director of clinical operations at University College London, on Twitter. The UK already has the highest death toll in Europe, with 75,024 deaths, and medical experts are warning that it will rise again after more modest growth in the summer.

Others expressed concern about the constant changes in the message of a government that often seemed to respond to fast-moving events rather than anticipating them.

After the national lockdown last year, the government promised to do everything possible to keep schools open. However, the return of students on Monday after the winter break was confusing as some schools had to close in areas with high infections while some school principals decided to do it themselves. In some cases it was because too many employees were sick, in others it was reports that children might be more susceptible to the new variant than to the original virus.

A teachers’ union called on all elementary schools to switch to distance learning in the first two weeks of January, with the exception of classes aimed at vulnerable children and the families of key workers.

After days of chaos over school policy, Mr Johnson reluctantly and belatedly agreed to the proposal on Monday.

“Parents whose children were in school today reasonably wonder why we didn’t make that decision sooner,” he said, adding, “the answer is simply that we have done everything in our power to make schools keep open. “

Categories
Politics

Runoffs are too near name

According to NBC News, both Georgia Senate runoffs were too short to hold early Wednesday when Democratic Rev. Raphael Warnock declared victory in a race.

The competitions will determine which party will have the Senate majority for the next two years. Democrats want unified control of Congress and the White House. Republicans want a review of President-elect Joe Biden’s agenda.

Warnock, the 51-year-old senior pastor of Ebenezer Baptist Church, who preached Rev. Martin Luther King Jr., challenged 50-year-old incumbent GOP Senator Kelly Loeffler. The seat that Loeffler was appointed to after former GOP Senator Johnny Isakson retired early will be re-elected in 2022.

Warnock led Loeffler with around 98% of the vote, which was counted early Wednesday morning, according to NBC. He declared victory as his lead grew.

“I’m going to the Senate to work for all of Georgia, no matter who you voted for in this election.” Warnock said in a speech early Wednesday morning. He later added, “Are we going to play political games while real people are suffering, or are we going to win righteous battles standing shoulder to shoulder for the good of Georgia, for the good of our country?”

Even when Warnock led and the outstanding votes dwindled, Loeffler did not admit on Wednesday morning and claimed: “We will win this election.”

In the other stitching competition, 71-year-old Republican David Perdue meets 33-year-old Democrat Jon Ossoff, who runs a documentary production company. Perdue is aiming for a second term in the Senate after his first Sunday. The race took place early Wednesday morning with around 98% of the vote.

In a statement Wednesday morning, Ossoff campaign manager Ellen Foster said: “When all the votes are counted, we’ll assume Jon Ossoff won this election to represent Georgia in the United States Senate.” She said that outstanding votes come from areas where the Democrat did well in the elections.

Both elections went to the runoff after no candidate received more than 50% of the vote in the general election.

The districts have largely completed reporting. Cobb County, in the metropolitan area of ​​Atlanta, announced that the counting of results will not be complete tonight and that the vote count will resume at 1:00 p.m. CET on Wednesday.

A sign is seen as voters line up for the U.S. Senate runoff election at a polling station in Marietta, Georgia, the United States, Jan. 5, 2021.

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Biden won Georgia with 11,779 votes in November. NBC News announced his victory over President Donald Trump in Peach State only three days after election day when officials were putting together postal ballot papers.

More than 3 million Georgians cast their votes before Tuesday, representing a historically high turnout for runoff elections in the state. Runoff ballot data and voter history data suggest Democrats had an advantage in voter turnout. The Republicans were hoping for a strong performance on Tuesday.

According to the Georgian Foreign Minister, the average waiting time at polling stations until Tuesday was around a minute across the country. Republican election chief Gabriel Sterling said at a press conference Tuesday afternoon that election day turnout could range between 600,000 and 1.1 million voters. Exact numbers are difficult to predict before the ballots are counted.

Some districts closed later than 7 p.m. ET due to delays earlier in the day. The latest was a polling station in Lowndes County that closed at 8:00 p.m. ET, according to the Georgia Democratic Party. Voters standing in line before the election was over were legally allowed to cast one vote.

According to the non-partisan Center for Responsive Politics, the two runoff elections in Georgia are the two most expensive Senate races of all time.

If even one of the Republicans wins, the GOP retains Senate control. Democrats will have to sweep both races to get a 50:50 split in the chamber. Vice-President-elect Kamala Harris would then hold a groundbreaking vote.

The election results will shape the first two years of the Biden agenda. If Republicans keep the Senate, they will push for a smaller coronavirus bailout package than Democrats hope to pass in the coming months. During a rally Monday, Biden and the Democratic Senate candidates stressed that victories in Georgia could help them provide $ 2,000 in direct aid payments – a plan that Senate Majority Leader Mitch McConnell, R-Ky., Alone opposes.

A Democratic Senate would also give Biden a better chance to pass his economic recovery agenda and ratify his elected cabinet candidates and judges. Approval only requires a majority, while most laws require 60 votes to pass.

During the runoff election, Perdue and Loeffler appealed to Trump’s loyal supporters, including by supporting the outgoing president’s unsubstantiated claims of widespread election fraud. In a climatic event days before the election, Trump threatened Republican Secretary of State Brad Raffensperger with a phone call to find votes that would undo Biden’s victory in Georgia.

Loeffler said in a statement on Monday that she would speak out against the certification of the results of the electoral college on Wednesday. The maneuver is likely to fail.

Some GOP strategists feared Trump’s ongoing attacks on the integrity of the Georgian elections could deter some Republicans from voting on Tuesday.

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Categories
World News

Shares prepared to shut out highly effective 2020 as dangers loom in January

Traders work on the trading floor of the New York Stock Exchange.

NYSE

At the end of trading next Thursday, the bull market will be ready to run through 2021, but likely at a slower pace.

January is the month Wall Street tradition says sets the tone for the year – “this is January, this is the year,” as the saying goes. This January could be challenging as the spreading pandemic slows the economy and the all-important Georgia Senate runoff takes place on January 5th.

Joseph Biden is sworn in as president on January 20th.

“It’s a year-end autopilot market,” said Sam Stovall, CFRA chief investment strategist. Three out of four years there will be a year-end Santa rally in the market, but Stovall is also waiting to start trading in the first five days of January for signs of how the market might trade in 2021.

If the market is higher in the first five days, history shows the S&P 500 is up 82% for the full year, with an average gain of 12.5%.

“There are things that we might be worried about in January. If it were real worries, the market would already react or already step on water,” said Stovall. “What scares me is that the market is building itself. It’s a correction in the search for a catalyst and we don’t yet know what the catalyst is.”

Some strategists expect a pullback earlier in the year, but the consensus is that the market will end higher in 2021. The average expectation for the S&P 500 by the end of 2021 is 4,056, according to a CNBC poll of strategists.

Stovall said the market has gotten expensive and there are signs of foam. The 12 month value for money for S&P 500 companies is 41% premium versus the average multiple of 16.7 dating back to 2000.

“I don’t really believe that the first few days of January should set the direction for the market for the year’s balance sheet,” said Michael Arone, chief investment strategist, State Street Global Advisors. “If indeed [stocks] Doing a rally is more of a sign of strength. But if they hiccup I wouldn’t throw in the towel. “

The outcome of the Georgia races is a wild card for stocks and regardless of the outcome, it could trigger a market reaction. Should there be a surprise and the Democrats win both seats, the Senate would be split evenly between Republicans and Democrats. This would mean the elected Vice President Kamala Harris cast the votes.

Some strategists say the market could sell out if the Democrats win, as investors fear the party would have the votes to pass the Biden-favored tax hikes. On the flip side, a GOP win could spark a relief rally.

But Stovall said the market could rebound towards a Democratic victory if investors considered the prospect of a bigger infrastructure and stimulus package, favored by the Democrats.

Arone said uncertainty over the current $ 900 billion stimulus package approved by Congress last week could be cause for concern if President Donald Trump decides to veto or not sign the bill.

The president criticized the package, saying individuals should be given more than the $ 600 that would go to many adults and children as part of the relief.

The law extends unemployment benefits to millions of Americans, and those benefits will expire on December 31st unless signed up.

“We face deadlines rather than just being a political matter,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “There are actual deadlines for services that expire. Because of the deadlines, the market assumes that they will be exceeded.”

But the concern will hang over the market until it is resolved.

Quiet trading is expected in the coming four-day holiday week. There are few economic reports; Jobless claims on Thursday are being closely monitored. The following week, the December jobs report is expected to show a weaker labor market, with some estimates suggesting only about 100,000 jobs or fewer added.

9 month old bull

The S&P 500 starts the final week of the year up around 15% for 2020, but from the March low, the index has risen around 65%. The bull market turned nine months old this past week.

According to CFRA’s Stovall, that nine-month gain is more than double the average nine-month gain of 32.2% for all bull markets since WWII. Over the remainder of the bull markets, their average growth was only 20.3%, showing a slowdown in the profit rate.

“After those typical jackrabbit starts, the bull market advance rates typically slowed and saw lower average annual rates for the remaining bull market runs,” noted Stovall. Based on previous bull markets, he said returns could slow to around half of their current profit for the remainder of the bull run.

Calendar for the week ahead

Tuesday

9:00 am S&P / Case-Shiller real estate prices

Wednesday

8:30 a.m. Advanced Leading Indicators

9:45 am Chicago PMI

10:00 a.m. Pending home sales

Thursday

8:30 a.m. unemployment claims

Friday

New Year

Markets closed

Categories
Health

Shares shut 55% increased on market debut

A woman stands next to signage with the JD.com logo and the company’s mascot “Joy” at the company’s headquarters in Beijing, China.

Qilai Shen | Bloomberg | Getty Images

GUANGZHOU, China – JD Health, the health division of Chinese e-commerce giant JD.com, rose on its debut in Hong Kong.

JD Health issued 381.9 million shares at a price of Hong Kong $ 70.58 each. These stocks traded at Hong Kong $ 94.5 at launch. That was 34% more than the offer price.

Shares rebounded during the day, hitting a daily high of $ 123.3 Hong Kong, up nearly 75% from the offer price. The stock closed at $ 110 Hong Kong.

The company said the net proceeds from the IPO were Hong Kong dollars 26.46 billion ($ 3.41 billion).

JD Health’s shares were valued at the high end of the Hong Kong dollar 62.8 to Hong Kong dollar 70.58 marketed to investors, CNBC previously reported.

The investment banks could decide to exercise the so-called over-allotment option, in which 57,285,000 additional shares would be issued. That would result in raising another $ 3.98 billion in Hong Kong through the IPO. The over-allotment must be exercised by December 31st.

Business growth plans

JD Health said 40% of net sales will be used for business expansion over the next 3 to 5 years, 30% will be used for research and development over the next 2 to 3 years, while the remaining money will be spent on potential investments. Acquisitions and General Corporate Purposes.

The company’s business is focused on online health services such as consultations with doctors, as well as the online pharmacy. JD Health posted sales of 8.78 billion yuan ($ 1.34 billion) for the six months ended June 30, compared to 4.99 billion yuan for the same period last year.

Citing a Frost & Sullivan report, the company claimed in its prospectus that it was the top-selling online health platform in China in 2019.

CEO Xin Lijun declined on Tuesday to say whether the company could keep that position. He stressed that the company’s focus is on improving the user experience, which of course would generate revenue.

“The Chinese health and medicine industry is playing like ‘go,'” Xin said, according to a CNBC translation of his Mandarin-language remarks made during a briefing with reporters in Beijing. He was referring to an ancient board game in which two players fight for most of the territory.

China’s healthcare industry is difficult for startups to navigate. The government is heavily involved in medical care and runs mass insurance programs to reimburse patients.

“It’s not a market-based scenario,” Xin said, noting that it limits the areas startups can do and that each line of business has its own challenges. “In theory, of course, our biggest challenge is to educate more customers about JD Health’s services and better integrate online healthcare with offline services.”

Xin said JD Health could invest in offline drug stores and work more with overseas health organizations.

JD Health’s listing is another big win for the Hong Kong Stock Exchange, where big Chinese companies have gone there to raise money. JD Health’s parent company, JD.com, conducted a secondary listing in Hong Kong in June. Another Chinese internet company, NetEase, also made a secondary listing in Hong Kong that month.

China’s tech giants have stepped up their focus on digital health care following the coronavirus outbreak earlier this year. Internet search giant Baidu is in talks with investors to raise up to $ 2 billion for a new biotech company within three years, CNBC reported in September.

JD.com will remain the majority shareholder of JD Health even after the IPO. A number of so-called cornerstone investors have been brought on board, including Hillhouse, Tiger Global, Lake Bleu Prime, the China Structural Reform Fund, Blackrock and Singapore’s sovereign wealth fund GIC.