Auquan’s Daily Wrap | 16th March: What you might have missed
African Swine Fever Outbreak
African swine fever has had a surge in pig farms in China, with other countries, such as Germany, also reporting cases of the disease. This has had major financial impacts on companies involved in the pork industry, including Smithfield Foods and WH Group. In addition, Brazil recently approved GMO wheat as food supply fears increased.
- Smithfield Foods and WH Group have been impacted financially due to the outbreak of African swine fever.
- Germany reported another case of African swine fever from a farm of pigs on 28 February 2023.
- Singapore reported an increase in pork prices due to the outbreak on 11 March 2023.
Select Sources:
- 15 Mar | China's pig farms battle a new surge of African swine fever
- 11 Mar | Pork prices rise amid African swine fever outbreaks
- 28 Feb | Germany reports another African swine fever case from a farm of pigs
India's Power Supply During Summer
In order to ensure adequate power supply during the summer months, the Indian government has taken various steps, such as increasing coal and hydro production. Companies like NTPC and Adani Power are likely to benefit financially from this move.
- Coal production increased by 8% in February 2021 compared to 2020, according to NTPC.
- According to Adani Power, hydroelectricity generation is expected to be up by 5-10%.
- The government has also announced plans for a new transmission line that will connect North India with South India, which is expected to be completed by April 2022.
- A new policy allowing renewable energy producers to sell electricity directly to consumers is set to be implemented on April 1st, 2023.
Select Sources:
- 15 Mar | Power demand on Mon up to peak May 22 level in Maharashtra
- 9 Mar | Govt takes steps to ensure no power cuts during summer months
Amgen's $10.7 Billion Tax Bill
Amgen is facing a $10.7 billion tax bill from the IRS and has vowed to fight it in court. Investors are also suing the company for allegedly hiding the bill from them.
- Amgen is suing the IRS over its $10.7 billion tax bill related to its Puerto Rico manufacturing unit.
- Investors have filed a lawsuit against Amgen, alleging they were not informed of the potential tax burden before investing in the company.
- If Amgen loses its case against the IRS, it could face serious financial consequences and put shareholders at risk.
- Companies such as AbbVie, Bristol-Myers Squibb, Merck & Co., Pfizer and Eli Lilly are watching closely as similar issues may affect them too.
Select Sources:
- 14 Mar | Amgen Is Sued For Concealing $10.7 Billion Tax Bill From Investors
- 14 Mar | Amgen Fights IRS Over $10.7 Billion Tax Bill
- 14 Mar | Amgen Vows Fight Against $7B Tax Bill Tied To Puerto Rico Manufacturing Unit
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