Sandoz, the generic drug unit of pharmaceutical giant Novartis, has admitted that it colluded with other companies to inflate the prices of various generic drugs and is paying $195 million to resolve charges, the Department of Justice said Monday.
Why it matters: This is the largest criminal penalty in a U.S. antitrust case, and Sandoz is now the third company to admit guilt within the wide-ranging scheme to fix prices of generic drugs. Sandoz's admission implicates more generic drugmakers.
Stocks closed up more than 4% on Monday, rebounding from Wall Street's worst week since the financial crisis. The S&P 500 is 8% below its record high, moving out of correction territory.
The big picture: The gains come despite more news of the coronavirus outbreak spreading in the U.S. and around the globe. Central banks, including the Federal Reserve, indicated willingness to step in to soften the blow of any coronavirus impact to the global economy.
AT&T is launching a new TV service and a series of offers it hopes will allow it to sell TV service even when people don't want to give up their current broadband provider.
Why it matters: The streaming field is crowded, but some of the most lucrative customers are those willing to pay for live TV. This is AT&T's latest effort to go at that market.
Activist investor Elliott Management has acquired nearly a 5% stake in Twitter, and believes the key to unlocking value is to replace Jack Dorsey as CEO. Bloomberg first reported the news, which Axios has since confirmed with multiple sources.
Why it matters: Elliott has become the top agitator in tech, and often gets what it wants. In this case, it's striking straight at the cult of the founder.
Cole Haan and Warner Music Group are postponing their initial public offerings, which had been scheduled to launch this week, per Reuters.
Why it matters: This reflects how coronavirus is causing deal market chaos, because of both pricing volatility and a growing aversion to in-person meetings. It also should serve as a reminder to companies like Airbnb that "open windows" aren't eternal.
More than 15,000 people have signed a Change.org petition calling for the cancellation of the upcoming SXSW festival in Austin, Texas — though organizers insist the event will go on as scheduled this month.
Why it matters: The show is a huge gathering that brings in tons of tourism revenue to the city, but also brings together people from all over the world into lots of tightly packed spaces.
Jack Welch, the former chairman and CEO of General Electric, died at 84, according to a Monday announcement from his wife.
Why it matters: During Welch's 20 years at the helm of the conglomerate, the company's market value grew from $12 billion to $410 billion, becoming one of the world’s most valuable companies, CNBC reports. He was known for his streamlining of GE's workforce, cutting its employees by more than 100,000 at the start of his tenure to improve the company's bottom line.
Fed chair Jerome Powell's statement on Friday afternoon that the U.S. central bank was "closely monitoring developments" and would "act as appropriate to support the economy" has eliminated any doubt that the Fed will cut U.S. interest rates at its meeting on March 17–18.
What we're hearing: "A Fed cut in March appears nearly certain," analysts at Goldman Sachs said in a late Sunday note to clients.
Top officersat America's largest bank lobbying organization are calling on the Fed not only to cut U.S. interest rates, but also to institute a series of reforms that were last put in place during the 2008 financial crisis.
What's happening: The president and CEO, the chief economist and the head of research of the Bank Policy Institute, which represents the nation's leading banks, posted a blog Sunday laying out a set of policy prescriptions they encourage the Fed to use to fight possible economic damage from the coronavirus outbreak.
Sen. Josh Hawley (R-Mo.) is introducing legislation on Monday directing public housing officials to better track landlords who do not maintain basic living standards for tenants.
Why it matters: Renters' rights are getting more attention as the nation's affordable housing crisis worsens in nearly all communities.
The economy according to Bernie Sanders looks unlike anything any politician this close to the presidency has ever put forth before. It's a rethinking of the entire American economic model.
What it means: To understand the Bernie economy — his plans for free health care, college tuition and a government-guaranteed job for every American — it helps to view it through the lens of modern monetary theory, or MMT.
