Hertz makes 'agile' decision to shift strategy and sell EVs, Teslas
Hertz has announced that it will sell about a third of its global electric vehicle (EV) fleet, reversing its previous strategy of betting big on EVs. This move comes in response to the rest of the auto industry cutting production of EVs or reducing prices due to slowing demand and increased inventory. Hertz CEO Stephen Scherr stated that the company is "responding to the reality" of the market, acknowledging that EVs, particularly those from Tesla, are not yet the best rental car option. The company plans to sell around 20,000 EVs and use the proceeds to purchase internal combustion engine (ICE) cars. Hertz expects to improve its bottom line by $245 million over the next two years as a result of this shift. The decision to sell part of its Tesla fleet is seen as a "black eye" for Hertz by Wedbush analyst Dan Ives, who believes the company miscalculated the marketing and roll-out of its EVs. Hertz had previously aimed to have a quarter of its fleet composed of EVs by the end of 2024.
Taiwan's new president will face a divided parliament. Here's why it matters
The emergence of Ko Wen-je as Taiwan People's Party's presidential candidate has caused a split in the usual duopoly of the Democratic Progressive Party (DPP) and the Kuomintang (KMT) in Taiwan. This split is attributed to growing discontent among Taiwanese youth who feel that the ruling DPP has not adequately addressed their economic concerns. With a split legislature, it is expected that the Lai administration will face difficulties passing its agenda without coordinating with the Taiwan People's Party (TPP) or focusing on areas of broader consensus. The TPP is now in a strategic position to influence the success of Lai's legislative plans. President-elect Lai has identified the financial stability of Taiwan's labor and health insurance, as well as the transition to renewable energy, as key issues to prioritize and build consensus on. Furthermore, Lai has stated his intention to appoint qualified professionals regardless of political affiliation, emphasizing a democratic alliance. While the split may have negative implications, some experts argue that it could be beneficial for Taiwan's democracy, promoting compromise and potentially moderating Lai's policies.
Biotech and pharma companies are betting on a promising class of cancer drugs to drive growth
Antibody-drug conjugates (ADCs), a group of cancer drugs that deliver targeted therapies to kill cancer cells while minimizing damage to healthy ones, has become a red-hot market in 2023. During the JPMorgan Healthcare Conference, the largest gathering of biotech and pharmaceutical executives, analysts, and investors, the industry showed its enthusiasm for ADCs. Companies like Johnson & Johnson, Pfizer, and Merck have made significant investments in ADCs and expect them to be key growth drivers for their businesses. Factors driving the rise of ADCs include increased confidence in the technology, potentially longer market exclusivity, and the emergence of attractive ADCs from drugmakers in Asia. Analysts predict continued interest in ADCs in 2024, with more dealmaking and advancements in ADC development. ADCs have the potential to generate huge profits, with estimates suggesting they could account for $31 billion of the $375 billion worldwide cancer market in 2028.