| 2018-03-17 08:44:49|
AVGO, QCOM… 08:44 03/17 03/17/18
Week in review: How Trump's policies moved stocks
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly: 1. QUALCOMM, BROADCOM DEAL BLOCKED: In an executive order, President Trump blocked Broadcom's (AVGO) attempt to acquire Qualcomm (QCOM). "There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore, along with its partners, subsidiaries, or affiliates...through exercising control of Qualcomm, a Delaware corporation, might take action that threatens to impair the national security of the United States; and Provisions of law, other than section 721 and the International Emergency Economic Powers Act, do not, in my judgment, provide adequate and appropriate authority for me to protect the national security in this matter," Trump said in the order. He added that the proposed takeover of Qualcomm was prohibited and "any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited." Later in the week, Broadcom announced that it had withdrawn and terminated its offer to acquire Qualcomm and has withdrawn its slate of independent director nominees for Qualcomm's 2018 annual meeting of stockholders. 2. NEW SECRETARY OF STATE: President Trump ousted Secretary of State Rex Tillerson and replaced the former Exxon (XOM) CEO with CIA Director Mike Pompeo. Using his Twitter account, Trump said: "Mike Pompeo, Director of the CIA, will become our new Secretary of State. He will do a fantastic job! Thank you to Rex Tillerson for his service! Gina Haspel will become the new Director of the CIA, and the first woman so chosen. Congratulations to all!" 3. EVOLENT HEALTH: On Wednesday, Oppenheimer analyst Mohan Naidu said that recent rhetoric from new Health and Human Services Secretary Alex Azar and CMS Administrator Seema Verma makes him believe that the transition toward value-based reimbursement will likely be front and center for the new HHS leadership. The analyst noted that this push will drive more health systems to reconsider their strategy of maintaining the status quo, and to reevaluate and move toward tackling the problems of risk-based reimbursement, which he believes will drive demand for Evolent Health's (EVH) solutions. Naidu added that this tailwind should drive pipeline and deal flow for the company, and reiterated an Outperform rating and $22 price target on the stock. "Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories.
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