Tag: Aetna

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July 12! Amazon sets second 24-hour Prime Day; two Conn. groups push against Humana-Aetna; and the Internet gorges on story about ‘world’s angriest’ Taco Bell customer

A news summary, focused on 10 big employers; updated 10:04 a.m.

AMAZON said this year’s 24-hour Prime Day sale would include more than 100,000 specially discounted items. U.S. members can shop starting at 3 a.m. ET/midnight PT, with new deals as often as every five minutes (press release). Last year, in addition to a 266% increase in orders vs. the same day in 2014, Prime Day also spurred more people than ever to try the $99-a-year Prime service. It also drove more sales than any of the retailer’s previous events — even beating Amazon’s 2014 Black Friday (The Verge). Apparently responding to complaints last year that some items sold out too quickly, Amazon said this year it would “dramatically” boost inventory and make it easier to search for deals by sorting through categories (Cnet).

Amazon employs 6,000 workers in the Louisville area at mammoth distribution centers in Jeffersonville, and in Bullitt County’s Shepherdsville. Plus, another big Prime Day is good news for the retailer’s shipper, UPS; with 22,000 workers at its Louisville International Airport hub, it’s the city’s single-biggest private employer.

HUMANA: Two Connecticut activist groups and the state’s medical society have criticized regulatory reviews of the proposed $37 billion Humana-Aetna merger in a letter this week to the U.S. Justice Department; they’re asking the trust-busters “to protect people from the harm these mergers will cause.” Aetna is based in Hartford. The groups, which also criticized a similar planned merger between Anthem and Connecticut-based Cigna, were joined by 40 other state doctors’ associations and health-care charities nationwide (Hartford Courant). Humana employs 12,500 workers at its downtown Louisville headquarters and other sites across the city.

UPS and the 2,500-member Independent Pilots Association  today announced a tentative agreement on a new five-year labor contract, including improvements across all sections. Specific details of the agreement will not be disclosed before the IPA presents the proposed contract to all UPS pilots (press release).

Also, a looming pilot shortage will soar to 15,000 by 2026, according to a study by the University of North Dakota’s Aviation Department, as more captains reach mandatory retirement age of 65, and fewer young people choose aviation as a profession. “And that’s in an industry,” says the Dallas Morning News, “where captains on the biggest international jets average more than $200,000 a year — with some pushing $300,000” (Morning News).

FORD‘s decision to bypass an employee for a position based on his use of opioids was not enough to prove his disability discrimination claim, the U.S. Sixth Circuit Court of Appeals has found (National Law Review). The automaker employs nearly 10,000 workers at its auto and truck factories in Louisville.

PIZZA HUT: In New Orleans, police arrested a man and woman early yesterday who allegedly carjacked a Pizza Hunt deliverer’s car at gunpoint Tuesday night, then led cops on a car chase before they were apprehended. The driver told officers he was making a delivery about 11:30 p.m. when a woman who said she placed the order — Simonne Walker, 19 — approached him. But instead of paying him, the woman’s companion — Kenneth Rainer, 20 — walked up, put a gun to the driver’s back, and demanded cash and his car keys. Walker and Rainer then got into the car and sped off, the cops say (Times-Picayune).

ChambordBROWN-FORMAN is promoting its Chambord black raspberry liqueur through a “Just Add Chambord” Royale cocktails campaign starting tomorrow. The campaign targeting hotel bars and lounges runs through Sept. 30. The Louisville spirits giant will supply participating establishments with Chambord-branded flute glasses, recipe and tent cards. Nidal Ramini, marketing chief for Bacardi Brown-Forman brands said (in a very odd quote): “We are confident the new platform will inspire the on-trade in particular, to transform and elevate serves, whilst helping them understand how Chambord can be the perfect way to elevate a simple glass of bubbles, and ultimately increase profit” (Harpers). Here’s the Royale recipe.

PAPA JOHN’S fired an employee at Continue reading “July 12! Amazon sets second 24-hour Prime Day; two Conn. groups push against Humana-Aetna; and the Internet gorges on story about ‘world’s angriest’ Taco Bell customer” →

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DOW PLUNGES 589 POINTS IN GLOBAL ROUT, AS INVESTORS REEL FROM BREXIT VOTE; FORD DIVES 7%; YUM, OTHER LOUISVILLE STOCKS SLAMMED

A news summary, focused on 10 big employers; updated 5:21 p.m.

Traders at exchange
Anxious traders at the New York Stock Exchange today (New York Times).

The Dow Jones Industrial Average cratered 3.3% this afternoon, tumbling 589 points and wiping out its year-to-date gains as fears gripped markets with Britain’s stunning vote to  leave the E.U. The broader S&P 500 tumbled 3% and the Nasdaq slumped 3.8%. Latest news.

All 10 big-employer stocks tracked by Boulevard fell sharply:

To fully appreciate the magnitude of the losses, consider Kentucky’s richest family, the Browns of Brown-Forman. They saw $201 million of their more than $6 billion in paper wealth evaporate in a matter of hours.

WSJ-1
This morning’s paper.

The impact of last night’s stunning Brexit news for Louisville employers will be greatest for those with extensive overseas footprints and currency exposure.

They include Brown-Forman, which sells 15 brands such as Jack Daniel’s in 160 countries worldwide. The U.K. is the company’s second-biggest market, accounting for 10% of fiscal 2016 sales, according to Brown-Forman’s annual report. Europe, excluding the U.K., was 21%. The U.S. is No. 1, with 46%. The company says foreign markets are increasingly important: “In fiscal 2016, we generated 54% of our net sales outside the United States compared to 41% 10 years ago.”

Other companies likely taking post-Brexit hits include Papa John’s, which operates in 39 countries; Yum in 130 countries and now reshaping overseas operations with a planned China spinoff in October; Ford, which is already reworking its European sales strategy, and Amazon, a relative newcomer abroad.

Boulevard’s Stock Portfolio companies routinely warn investors about risks of doing business outside the U.S. Papa John’s, for one, noted in its annual report that “international operations could be negatively impacted by changes in international economic, political, security or health conditions in the countries in which the company or our franchisees operate.”

Yum’s 14,600-unit KFC Division bears the biggest overseas exposure; it’s in 120 countries, with more than a third — 5,003 restaurants — in China.

uk_tg
Britain’s Guardian.

“Our business,” Yum says in its annual report, “is increasingly exposed to risks inherent in international operations. These risks, which can vary substantially by country, include political instability, corruption, social and ethnic unrest, changes in economic conditions .  . .  as well as changes in the laws and policies that govern foreign investment in countries where our restaurants are operated.”

Also, Yum warns, “results of operations and the value of our foreign assets are affected by fluctuations in currency exchange rates, which may adversely affect reported earnings.”

Boulevard’s Big 10 companies employ 63,000 workers in the Louisville area, and nearly 2 million worldwide.

In non-Brexit news; updated 5:38 p.m.: Continue reading “DOW PLUNGES 589 POINTS IN GLOBAL ROUT, AS INVESTORS REEL FROM BREXIT VOTE; FORD DIVES 7%; YUM, OTHER LOUISVILLE STOCKS SLAMMED” →

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Prominent U.S. senators ask DOJ to block Humana-Aetna deal; and FAA hits Amazon with another hazardous shipping fine

A news summary, focused on 10 big employers; updated 4:23 p.m.

Richard Blumenthal
Blumenthal

HUMANA: A group of high-profile U.S. Senate Democrats yesterday urged the Justice Department to block the proposed Aetna-Humana and Anthem-Cigna mergers, which would shrink the number of national health insurers to three from five. In a letter, they argued the pending tie-ups would threaten jobs, raise premiums, and reduce the quality of care. The letter was signed by Al Franken of Minnesota, Elizabeth Warren of Massachusetts, Sherrod Brown of Ohio, Edward J. Markey of Massachusetts, Dianne Feinstein of California, Mazie K. Hirono of Hawaii — and Richard Blumenthal of Connecticut, in whose state both Aetna and Cigna are headquartered (Business Insurance). Aetna officials have said they expect the $37 billion merger with Humana will close in this year’s second half.

AMAZON: The FAA has proposed fining Amazon another $130,000 for twice shipping hazardous packages in 2014 without warning labels or emergency response information. In one,  the retailer offered UPS a box with a 19-ounce container of Simple Air EZ Green HVAC Cleaner. The flammable gas was discovered by UPS workers in Kentucky; the second incident involved FedEx. The proposed penalty comes two weeks after the FAA fined Amazon $350,000 over a similar incident that caused injuries to several UPS workers (CIO). Also, a San Francisco Bay area woman learned the hard way that Amazon can, indeed, ban you for good if you return too many orders — although she eventually got a reprieve (NBC). Amazon employs 6,000 at two distribution centers near Louisville.

Papa John's logoPAPA JOHN’S: Researcher Nomura yesterday downgraded Papa John’s stock to neutral from buy, partly because of concerns traffic accidents involving delivery drivers could push up insurance costs. Among the examples cited: A jury in DeKalb County, Ga., awarded $11 million to a woman who suffered long-term brain damage after an incident involving a Papa John’s driver. “While this award likely will be appealed (if it hasn’t already),” Nomura told clients, “it does highlight what appears to us to be the growing risks.” The firm also downgraded Domino’s shares for the same reason (MarketWatch). Wall Street was unfazed: Papa John’s shares closed today at $67.79, up 2.3%.

BROWN-FORMAN is launching a global scavenger hunt to celebrate the 150th anniversary of its flagship Jack Daniel’s Distillery. Starting July 1 through September, the distiller will provide clues via its Facebook page to 150 hidden whiskey barrels around the world and give fans the opportunity to find and win prizes. The barrels will be hidden at airports in Amsterdam, Frankfurt, Heathrow, Milan, Paris, Singapore, Los Angeles and Sydney, plus cultural and historic sites (Frontier Magazine and Travel Retail Business).

FORD and the other two big U.S. automakers collectively outperformed import brands for just the second time in 30 years in this year’s closely watched J.D. Power Initial Quality Study. Still, Ford finished No. 11; Kia was No. 1 (Detroit Free Press). The automaker employs nearly 10,000 workers at its auto and truck factories in Louisville.

UPS: A Idaho woman is praising a UPS driver after he likely saved her and her sons from what could have been a deadly house fire last month (East Idaho News). UPS is Louisville’s single-biggest employer, with about 22,000 workers its Worldport hub at Louisville International Airport, the biggest fully automated package handling facility in the world.

TACO BELL: A viral video of a teenager’s arrest for allegedly brandishing a knife at a Taco Bell employee in Wisconsin has sparked protests and an internal police inquiry (The Root).

In other news, Texas Roadhouse shares closed at $46.55, up 3% — another record closing high — after setting an earlier intraday high of $46.60. And Churchill Downs shares closed at $127.60 up 63 cents as nearly two million shares changed hands — 10 times average volume. Standard & Poor’s announced the Louisville company would replace Fortune Brands Home & Security in the S&P MidCap 400 after the close of trading today (RTT News).

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Aetna-Humana clear big hurdle as California regulators OK $37-billion merger, but Anthem-Cigna deal stumbling

A news summary, focused on 10 big employers; updated 4:56 p.m.

HUMANA: Regulators in the nation’s biggest insurance market, California, have signed off on Aetna’s $37 billion plan to buy Humana, saying yesterday the deal could move forward after Hartford-based Aetna agreed to invest $50 million in the state’s health-care infrastructure (Bloomberg). The companies have said they expect the deal to close in this year’s second half. In another big merger before regulators, Anthem and Cigna may find it impossible to divest themselves of large chunks of their health insurance businesses in order to overcome reported Justice Department antitrust concerns (Wall Street Journal). Meanwhile, Humana plans to move 1,000-1,200 employees to the Waterside and Clocktower buildings it owns downtown, from leased space at 12501 Lakefront Place in the Blankenbaker Station Business Park (Courier-Journal, Business First and WDRB).

Papa John's logoPAPA JOHN’S ranked No. 2 among fast-food restaurants in the annual American Consumer Satisfaction Index survey with a score of 82 out of a possible 100, a 5% increase from 2015. No. 1 Chick-fil-A got 87 points, according to the survey results out today. KFC was No. 9 at 78, and Pizza Hut was No. 79 at 77 (CNN).

TACO BELL makes good on a promise to give away potentially millions of Locos Tacos today, in a promotion tied to the NBA championship finals, which ended yesterday with the Cleveland Cavaliers beating the Golden State Warriors (WISH).

GE: Rival LG’s home Continue reading “Aetna-Humana clear big hurdle as California regulators OK $37-billion merger, but Anthem-Cigna deal stumbling” →

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Ball State defends $3.3M from Schnatter-Koch; more Humana-Aetna op; Ford GT back at Le Mans, and Brits say KFC server in Fla. was ‘most miserable’

Latest headlines, focused on big employers; updated at 4:37 p.m.

Ford GT Le Mans
Ford’s new GT faces Ferraris and other top rivals at famous French race again. Thousands have applied to buy one of the $400,000 supercars.

PAPA JOHN’S: Ball State University deflected concerns over accepting a $3.3 million donation from Papa John’s founder John Schnatter and the Charles Koch Foundation, to promote free enterprise, saying it wouldn’t subvert academic freedom (Star-Press). The March donation is only the latest from the two men.

Schnatter and Koch
Schnatter and Koch.

They gave $12 million to the University of Kentucky in December and $6.3 million to the University of Louisville in March 2015, in both cases also to establish free-enterprise institutes. Administrators there offered similar assurances about academic independence. But a contract UK signed and Schnatter’s views on capitalism point to a possibly sharp collision of goals. Schnatter graduated from Ball State in Muncie, Ind., in 1983, and started his pizza company the following year.

GE: In Appliance Park, new owner Haier is getting a facility that’s completely rebuilt itself from years of outsourcing and offshoring,” said John Shook, CEO of the nonprofit Lean Enterprise Institute, which advised long-time GE owner in trimming management and tweaking production. “GE Appliances is a lean producer with an engaged leadership that has done an excellent job involving the union workforce to build in quality on the front lines (Benzinga). China-based Haier completed the $5.6 billion deal a week ago today; Appliance Park has about 6,000 employees making refrigerators and other home appliances.

HUMANA and planned acquirer Aetna face increased opposition to the $37 billion deal — as do merger partners Anthem and Cigna — from a new coalition of consumer and medical groups worried about the consolidations,  which would shrink the healthcare insurance market to three major insurers from five (CT Mirror). Aetna officials have said recently the deal is still on track to close in this year’s second half. About Humana.

Edsel Ford II
Ford

FORD: Unfortunately misnamed Edsel Ford II leaves tomorrow for Le Mans to watch the new Ford GT return to the legendary race against Ferraris, Porches and Aston Martins, starting Sunday. Ford, 67, a great-grandson of the company’s founder, visited the track with his father, Henry Ford II, in 1966 when he was a teen to witness the Ford GT40 place 1-2-3. “Fifty years have gone by fast,” he said. “Seems like yesterday I was there with Dad” (Detroit Free Press). The GT racing is based on the all-new $400,000 supercar unveiled in January. Le Mans history. Edsel Ford is a consultant to the company and member of its board of directors. At this year’s annual meeting, he faced the most resistance from shareholders re-electing directors, apparently over the $650,000 Ford paid him as a consultant. About Ford in Louisville.

Watch video of the 1966 race, and the new car:

KFC: Job recruiters want to talk to you if you have a “friendly attitude and positive demeanor” at an open house on Thursday (CraigsList). Elsewhere in Maryland, firefighters responded to a mulch fire early Saturday afternoon that spread to the exterior of a KFC; no injuries were reported. Why was there mulch so close? The news report is silent on that important question (Carroll County Times). More about KFC corporate parent Yum.

In top culture news, Broadway’s Hamilton won 11 Tonys last night, including best musical — just shy of the record of 12 won by The Producers. Tickets are impossible to get, as we discovered when we found one for a whopping $7,075 in a travel story last month.

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Regs can’t force Aetna to stay in Hartford; good B-F news: teen binge drinking dives; and $10K pet bird stolen from a N.H. Roadhouse lot is home again
aetna-headquarters
Aetna’s headquarters building in Hartford, where it was founded in 1853.

A news summary, focused on big employers; updated 2:29 p.m.

HUMANA: Connecticut insurance regulators can’t require Aetna to maintain its headquarters in the state should the Hartford insurer’s $37 billion purchase of Humana go through as planned (Journal Enquirer). Last month, Aetna CEO Mark Bertolini refused to rule out the possibility Aetna might abandon its historic Hartford corporate home, saying only that the deal’s terms required the company establish a presence in Kentucky. “The rest of all of our real estate is under review,” he told the annual shareholders meeting. Aetna has 6,000 employees in Connecticut. The merger, expected to close this year if it passes regulatory review, would double its workforce to 110,000; Humana has about 12,500 in Louisville. In San Antonio, meanwhile, Humana plans to hire 140 seasonal and permanent telephone salespeople, adding to the 1,050 already working there (Express-News).

Amazon logoAMAZON is reportedly launching a full-fledged music streaming subscription service for $9.99 a month, placing it in a head-on collision with established rivals Apple and Spotify and their 30-million song catalogs. Amazon already offers a limited music stream for its $99-a-year Prime shipping members. A full service would continue its drive to be a one-stop retailer for all goods (Reuters).

BROWN-FORMAN: Teenage binge drinking has sunk to the lowest level since a prominent survey began in 1991, newly released results show — positive news for an alcoholic beverages industry where Brown-Forman is a major player. The survey, conducted every two years by the Centers for Disease Control, analyzed more than 150,000 U.S. secondary students; it’s one of three sponsored by the Department of Health and Human Services (Spirits Business). The Youth Risk Behavior Surveillance System survey also covers smoking, fighting, technology use while driving, and other risky behavior (CDC).

GE Appliances launched its FirstBuild micro-factory at the University of Louisville two years ago so engineers could prototype ideas with state-of-the-art machinery and a community of helpers; an explainer (The Atlantic). GE sold the residential “white goods” business and 6,000-employee Appliance Park to Haier last week for $5.6 billion; the 20-employee FirstBuild was included.

Alan Mulally
Mulally

FORD: Retired CEO Alan Mulally, credited with saving the Dearborn, Mich., automaker, will be inducted into the Automotive Hall of Fame next month. Mulally, a Boeing executive before Ford, mortgaged everything — including the iconic Blue Oval logo — for a complete product portfolio overhaul to avoid a government bailout as bankruptcy loomed. General Motors and Chrysler went through bankruptcy. Mulally, 70, retired in 2014 and was succeeded as CEO by Mark Fields. Other hall of fame inductees will include auto safety advocate Ralph Nader, 82 (Detroit News). About Ford in Louisville.

PIZZA HUT: In Corpus Christi, Texas, three men stole a money bag from a Pizza Hut employee yesterday morning in a crime police say may be connected to others like it (KRIS).

Yellow-naped Amazon
What birds look like.

TEXAS ROADHOUSE: A pet yellow-naped Amazon bird named Emmett has been safely returned to his New Hampshire family after he was stolen Thursday night from their car in a Texas Roadhouse parking lot in Dewitt — and the finder turned down the $10,000 reward the family had offered (WSYR).

In other news, the Louisville Metro Council passed a critical ordinance granting Google Fiber a franchise for public right-of-way access to start installing hyper-fast Internet and data delivery service; Thursday’s passage had been expected (Business First). The service would provide speeds up to 100 times faster than conventional broadband, a huge economic recruiting tool that would elevate Louisville to the top ranks of high-tech cities.

Google Fiber’s website says the service is already in Atlanta, Kansas City, Nashville and Utah’s Provo — blue push pins on the following map. Louisville and other potential cities are identified with gray dots, and upcoming cities with purple:

Google Fiber map