Fund Flows & Issuance: According to Wells Fargo, flows week to date were -$0.2 billion and year to date flows stand at -$4.2 billion. New issuance for the week was $6.3 billion and year to date HY is at $143 billion.
(Reuters) Healthcare bill imperiled with 22 million seen losing insurance
- Twenty-two million Americans would lose insurance over the next decade under the U.S. Senate Republican healthcare bill, a nonpartisan congressional office said on Monday, complicating the path forward for the already-fraught legislation.
- The CBO assessment that an additional 15 million people would be uninsured in 2018 under the bill and its prediction that insurance premiums would skyrocket over the first two years prompted concern from both sides.
- McConnell’s goal was to have a vote on the bill before the July 4 recess that starts at the end of this week.
- McConnell can afford to lose just two Republican senators from their 52-seat majority in the 100-seat Senate, which would allow passage of the bill with Vice President Mike Pence casting the tie-breaking vote.
- “If you are on the fence … this CBO score didn’t help you, so I think it’s going to be harder to get to 50, not easier,” Republican Senator Lindsey Graham said of the bill’s prospects.
- The CBO is only able to assess the impact of legislation within a 10-year window, but it said that insurance losses are expected to grow beyond 22 million due to deep cuts to the Medicaid insurance program for the poor and disabled that are not scheduled to go into effect until 2025.
(CNBC) Report Arconic supplied flammable panels to Grenfell Tower
- Six emails sent to and by an Arconic manager raised questions about why the company supplied the combustible panels despite a public warning that they posed a risk.
- Grenfell Tower, which is more than 200 feet tall, was badly damaged in a June 14 fire that killed at least 79 people. London police said Friday the fire started after an appliance malfunction, adding they were considering manslaughter charges over the disaster.
- Arconic, a former Dow Jones industrial index component, told CNBC in a statement that it is discontinuing the sales of the panels around the world.
- “We believe this is the right decision because of the inconsistency of building codes across the world and issues that have arisen in the wake of the Grenfell Tower tragedy regarding code compliance of cladding systems in the context of buildings’ overall designs,” the company said in a statement.
- It had also told Reuters in a statement it’s not up to the company to decide what’s compliant with local building regulations.
(The Verge) Comcast and Charter reportedly talking with Sprint to offer wireless service
- Sprint’s merger talks with T-Mobile are temporarily on hold while the carrier mulls over a number of potential deals with the United States’ two biggest cable companies, Comcast and Charter.
- The trio of companies has reportedly agreed to a two-month exclusivity period on cutting a deal. Comcast and Charter appear to be interested in reselling Sprint’s wireless service under their own name. That’s something Comcast has already been doing with Verizon, and it could use Sprint’s network to improve coverage.
- Such a deal would likely involve the two cable companies making an investment in Sprint, which the carrier would then use to build out its network, generally known to be the worst of the four major phone service providers.
(Bloomberg) Alphabet Inks Deal for Avis to Manage Self-Driving Car Fleet
- Waymo, the self-driving car unit of Alphabet Inc., has reached an agreement for Avis Budget Group Inc. to manage its fleet of autonomous vehicles. It’s the first such deal in a field that’s still fledgling but exploding with partnerships. Avis shares surged.
- The rental car firm will service and store Waymo’s Chrysler Pacifica minivans in Phoenix, where the parent of Google is testing a ride-hailing service with volunteer members of the public. Waymo will own the vehicles and pay Avis for its service, an arrangement that is set for multiple years but not exclusive. The companies would not share financial terms.
- Avis gives Waymo a potential asset that rivals like the major automakers and Uber Technologies Inc already have: a sprawling network of traditional cars and customers that could be transformed into an autonomous transport service over time. Avis owns Zipcar, the on-demand rental service with over one million members, largely in urban centers. The new deal is limited to Waymo’s vehicles in Phoenix, where it started its first pilot service in April after nearly a decade of research.
- Yet Waymo could spread its self-driving systems into other cars over time. Zipcar was part of Avis’ appeal, said Waymo Chief Executive Officer John Krafcik. “One of the wonderful things about partnerships like this is that they are open,” he said.
- This partnership is the first major one involving oversight of driverless car fleets, a business opening that could help the technology spread. It’s a symbolic win for Avis, which now has the aide of Alphabet, a pioneer in the field that is willing to heave large sums into the unproven tech. Sales at the car rental company have slipped, facing pressure from dips in used vehicle prices, with first quarter revenue falling 2.2 percent to $1.84 billion.