Opening Bell 6.11.18

KKR to Buy Health Services Provider Envision for $5.57 Billion [Bloomberg] KKR & Co. will buy Envision Healthcare Corp. for $46 a share after an almost yearlong sale process for the medical company, which staffs hospitals and runs surgery centers in the U.S. The all-cash deal values Envision at $5.57 billion. Including debt, the acquisition is valued at $9.9 billion, the health-care company said in a statement Monday. Envision said the deal represents a 32 percent premium to its stock price in November, when it announced it was reviewing strategic alternatives. Investors such as KKR and strategic buyers including health insurers have been snapping up health-care assets in the U.S. Last year, KKR finished raising money for a $1.45 billion health-care fund dedicated to growth stage compa...

Buy EA shares because its battle-royale mode in ‘Battlefield’ will fend off ‘Fortnite,’ analyst says

Piper Jaffray reiterates its overweight rating for Electronic Arts shares.

Forgot to withdraw from your retirement account? Here’s how to avoid that killer IRS penalty

So you failed to take a required minimum distribution from your individual retirement account. Now you’re staring at a 50 percent penalty on the money you should have withdrawn after turning age 70½. But don’t just accept the penalty, say personal financial advisors. You may be able to get the IRS to forgive your mistake. The penalty for not taking RMDs is steep. According to the IRS worksheet for figuring RMDs, a traditional IRA holder must withdraw about 3.65 percent by the last day of the year the holder turns 70½, which is the year RMDs begin. The percentage rises each year after that. For a $200,000 IRA, the first-year RMD is about $7,300. If the account holder fails to take the RMD as required, the penalty comes to half that, or $3,650, plus whatever taxes are due. “...

‘Unapologetically bullish’ analyst sees S&P 500 adding 11 percent before year’s end

To one "unapologetically bullish" portfolio manager, the rally will pick up speed and surge through year's end.

Tech is powering the rally in an ‘uneven market,’ macro expert says

Tech stocks’ big gains this year have contributed disproportionately to the market’s rally, and that has some concerned.

Here are the things you absolutely should not do after receiving an inheritance

Many people do not anticipate receiving an inheritance, or know what to do with it when they receive it. The amount of the inheritance may even be a surprise. If you’ve recently received an inheritance, it’s probably not under the best circumstances. Dealing with paperwork regarding financial and legal issues are usually not a priority during an already emotional time, and it can be easy to put off making decisions. Unfortunately, while a large lump sum may seem like a lot at the time, the money may not go as far as you think. Here are four examples of poor decisions made by those who have received a large inheritance. 1. Spending the entire inheritance immediately. This is the obvious one, but it’s easy to see why it would happen. When your bank balance goes from almost ...

The ‘Most Important Week Of The Year’? Full Week Ahead Preview

Is this the most important week of the year? Spoiler alert: almost certainly not. And that’s not to downplay the long list of important scheduled events. Rather, it’s just to say that invariably, scheduled events never end up being the ones that matter unless those scheduled events are elections. The two marquee events for markets this week are obviously the Fed and ECB meetings and I decided to eschew writing the usual Sunday evening week ahead preview in favor of in-depth posts on Powell and Draghi (and also in favor of eating pan seared Diver scallops at this new place that opened up down the street). The fate of emerging markets is in Jerome Powell’s hands and Draghi is about to try and see what happens when price discovery is allowed to resurface in European bond and credit markets. Y...

The euro is unlikely to see any gains despite the ECB planning an ‘easy money’ exit

The euro is unlikely to see a massive upswing Thursday as the ECB discusses the end of monetary stimulus.

Trade Deficit Rising!

Since 2017Q1. By Mr. Trump’s own metric, we’re losing. But it’s a stoopid metric for evaluating “unfair”-ness. From the last GDP release (which incorporates March trade release):Figure 1: Net exports to GDP (blue), and net exports excluding petroleum products (red), as a ratio to GDP, SAAR. NBER defined recession dates shaded gray. Orange denotes 2017Q1-2018Q1. Source: BEA 2018Q1 second release, NBER, and author’s calculations. Here’s a detail, in nominal dollar terms: Figure 2: Net exports to GDP (blue), and net exports excluding petroleum products (red), both nominal, SAAR. NBER defined recession dates shaded gray. Orange denotes 2017Q1-2018Q1. Source: BEA 2018Q1 second release, NBER, and author’s calculations. As noted in numerous instances (EconoFact, Steil/BI), trade deficits usually ...

A Reminder of Why It’s the G-7 and Not G-8

And also why we have sanctions against several Russian citizens, firms and financial institutions. Hint: It has something to do with the orange areas: Source: Euromaidenpress. In particular:Source: Ukrainian Defense Ministry via Euromaidenpress. For those inclined to dismiss the current conflict as merely a civil disorder, I refer them to this historical map. Source: Story of Hawaii Museum.

Trump’s historic summit with North Korea kicks off a very big week for markets

The summit between Trump and Kim Jong Un should create a positive backdrop, but central banks could be more market-moving.