Quartz Daily Brief—AbbVie’s surprise acqusition, China’s slower growth, US stress tests, smelly handshakes
Good morning, Quartz readers!
What to watch for today
Novartis Japan gets mothballed. Regulators forced the drug maker to suspend the majority of its operations (paywall) for 15 days because it failed to report thousands of cases of drug side effects promptly. Last year Japan charged Novartis with falsifying drug research data.
Stress test results. The US Federal Reserve posts the initial results of its annual stress tests on big banks, which look at how well they would withstand a severe and protracted financial crisis. The real test is a week from now, when the Fed assesses banks’ capital plans; Citi has been rejected two of the last three years.
When will Europe start QE? The European Central Bank will probably put a date on the start of its €60 billion ($66 billion) per month debt purchases. A Reuters poll found that most think the stimulus will do little to reverse the euro’s slide against the dollar, at least this year.
Nuclear talks in Switzerland. Officials from Iran and the P5+1 nuclear powers meet in Montreux as they reach a deal by the end of March. The US is downplaying expectations after Israeli prime minister Binyamin Netanyahu’s fiery speech to Congress on Tuesday. Iran has said no to the US’s proposal that it freeze nuclear activities for a decade.
While you were sleeping
AbbVie won a cancer drug bidding war. The company will pay $21 billion in cash and stock for Pharmacyclics, the maker of a blockbuster blood cancer treatment. AbbVie’s deal trumps Johnson & Johnson, which reportedly had the deal sewn up just hours beforehand, and adds more fuel to an overheated market in biotech.
China forecast slower growth. Premier Li Keqiang said China’s GDP growth target is “about 7%” in 2015, as expected, below last year’s 7.4%. Speaking at China’s annual parliamentary meeting, Li pointed to a lack of innovation, an inefficient growth model, overcapacity, and weak agriculture as areas ripe for reform.
Xiaomi increased its revenue forecast by 50%. CEO Lei Jun predicted sales of 100 billion yuan ($16 billion) this year, compared with 74.3 billion yuan last year, on the back of a more diversified product range and international expansion. Lei was speaking on the sidelines of China’s National People’s Congress, where he is a deputy alongside many of the country’s most powerful executives.
The US ambassador to South Korea was slashed in a knife attack. Mark Lippert was attacked by an activist calling for the unification of North and South Korea, who was wielding a 10-inch blade. Lipper suffered non-life-threatening injuries to his face and wrists.
Brazil raised interest rates to a near-six-year high. The central bank raised the cost of borrowing by 50 basis points to 12.75%, as the desire to control inflation outweighed the danger of causing a recession. Price increases hit a 12-year-high last month, and analysts expect the economy to contract by more than 0.5% this year.
The US Justice Department blasted the Ferguson police. A scathing report found the cops in the Missouri town where 18-year-old Michael Brown was shot last year exhibited a systematic racial bias, and that the department was operated as a money-making operation. But Darren Wilson, the officer who shot Brown, won’t face federal civil-rights charges.
Quartz obsession interlude
Ankita Rao on how startups are fulfilling India’s lust for sex toy. “More couples than ever are opening up about sex and trying out new toys in the bedroom. And the burgeoning online sex-toy market is there to help them out. Some estimate that India’s online sexual wellness industry will be worth Rs8,700 crore ($1.4 billion) by 2020, a massive increase from about Rs1,000 crore ($161 million) in 2014.” Read more here.
Matters of debate
China should set a wage target. A blunt GDP target is not as useful as raising people out of poverty.
The mobile payment scene is already too crowded. There are five major apps taking two different approaches.
Janet Yellen knows her way around a crystal ball. As central bankers go, she’s exceptionally good at forecasting.
Globalization has stalled. Fewer goods are crossing international borders and the financial crisis may be to blame.
Tinder’s ageist business model misses an opportunity. Instead of charging older people more, the dating app should filter out creeps.
Surprising discoveries
We smell our fingers after shaking hands. It’s probably part of an unconscious chemical signaling system.
Turkey’s president was fined insulting a statue. A sculptor won $4,000 because Recep Tayyip Erdogan called his work ”ugly.”
There is a campaign to ban Facebook’s “feeling fat” emoji. Campaigners say it trivializes body perception issues.
If you’ve lost something in Switzerland, this guy has it. Roland Widmer buys in bulk the lost items from buses, trains, and airports.
Our best wishes for a productive day. Please send any news, comments, smelly handshakes, and lost Swiss luggage to [email protected]. You can follow us on Twitter here for updates throughout the day.