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Update on the latest in business:

November 12, 2018

FINANCIAL MARKETS

Stocks fall sharply

NEW YORK (AP) — A steep drop in technology companies has sent U.S. stocks sharply lower, knocking off more than 400 points from the Dow Jones Industrial Average.

Banks and consumer-focused companies and media and communications stocks also took heavy losses.

Apple sank 4.8 percent and Amazon lost 4.5 percent. Facebook gave up 2.5 percent and JPMorgan Chase fell 1.8 percent.

Crude oil prices were headed higher, snapping a 10-day skid, after Saudi Arabia said it planned to cut its output.

Athenahealth jumped 9.6 percent after the struggling medical billing software maker received a buyout offer.

COTY-CEO

Chairman, and CEO, out at cosmetics maker Coty

NEW YORK (AP) — The top executive at the New York cosmetics maker Coty is leaving less than a week after revealing that significant supply chain problems sapped revenue during the first quarter, and its chairman has been replaced as well.

The company says that CEO Camillo Pane, who led the company for two years, resigned for family reasons.

Pierre Laubies, who last ran JDE, a beverage company, takes over immediately. He will also have a seat on the board.

Coty, whose brands include CoverGirl, Max Factor and Hugo Boss, named Peter Harf as chairman Monday, replacing Bart Becht.

The company will also add two independent directors to its board.

Stifel analyst Mark Astrachan wrote recently that Coty, in addition to near-term supply chain issues, will be wresting with underlying weakness in its consumer beauty unit for the next two to three years.

Shares of Coty Inc. tumbled 22 percent last week after reporting first-quarter earnings and they are down 57 percent this year.

ATHENAHEALTH-SALE

Athenahealth fetches $5.7 billion cash buyout offer

UNDATED (AP) — A prominent athenahelath investor and a private equity firm will spend about $5.7 billion on the medical billing software maker and take it private.

Veritas Capital and Evergreen Coast Capital say they’ll pair athenahealth with a company Veritas bought earlier this year, Virence Health.

Athenahealth stock owners will receive $135 in cash per share, a roughly 12 percent premium over the company’s closing price on Friday.

Athenahealth, based in Watertown, Massachusetts, makes medical record, revenue cycle and care coordination products and delivers most of it through the cloud.

Athenahealth investor Elliott Management has been critical of the company and offered about $6.5 billion to take it private last spring. Evergreen Coast Capital is an Elliott affiliate that invests in technology.

Shares of athenahealth jumped in early trading.

TRUMP

Trump complains about allies’ spending after France trip

WASHINGTON (AP) — Fresh from a trip to France where his brand of “nationalism” drew rebuke from his hosts, President Donald Trump says “much was accomplished” in his meetings. But he’s raising a familiar complaint about American allies’ spending on defense.

Trump said on Twitter today that the U.S. pays billions “protecting other countries, and we get nothing but Trade Deficits and Losses.” He says, “It is time that these very rich countries either pay the United States for its great military protection, or protect themselves.”

Trump returned late Sunday from ceremonies marking the 100th anniversary of the end of World War I. There, French President Emmanuel Macron rebuked Trump’s brand of politics, warning: “Patriotism is the exact opposite of nationalism: Nationalism is a betrayal of patriotism.”

FRANCE-CYBERSECURITY PACT

50 countries vow to fight cybercrime - US and Russia don’t

PARIS (AP) — Fifty nations and more than 150 tech companies are pledging to do more to fight criminal activity on the internet, including interference in elections and hate speech. But the United States, Russia and China are not among them.

The group of governments and companies pledge in a signed document to work together to prevent malicious activities like online censorship and the theft of trade secrets.

The declaration released today is supported by EU countries, Japan and Canada as well as tech giants Facebook, Google and Microsoft, among others.

French President Emmanuel Macron had pushed for the initiative, whose unveiling comes a day after dozens of world leaders gathered in Paris on Sunday for the centenary of the end of World War One.

BREXIT

EU pressures Britain as Brexit talks intensify

BRUSSELS (AP) — Britain’s European Union partners have ratcheted up political pressure on Prime Minister Theresa May amid signs that some progress is being made in Brexit negotiations.

Britain leaves the EU on March 29 — the first country ever to do so — but a deal must be sealed in the coming weeks to leave enough time for the U.K. Parliament and European Parliament to sign off. May faces increasing domestic pressure over her proposals for an agreement following the resignation of another government minister last week.

No Brexit breakthrough was announced today after talks between European affairs ministers, but the two sides are locked in technical negotiations to try to bridge the final gaps in a move laden with heavy political and economic consequences.

The main obstacle to an agreement is how to keep goods flowing smoothly across the border between EU country Ireland and Northern Ireland in the U.K.

AMAZON HQ-TWO CITIES

Amazon HQ favorites: Similar basics, different vibes

NEW YORK (AP) — The communities said to be favored to become homes to a pair of big, new East Coast bases for Amazon are both riverfront stretches of major metropolitan areas with ample transportation and space for workers.

But there are plenty of differences between New York’s Long Island City and Crystal City in northern Virginia.

Set within eyeshot of the nation’s capital, Crystal City is a thicket of 1980s-era office towers trying to plug into new economic energy after thousands of federal jobs moved elsewhere.

Rapidly growing Long Island City is an old manufacturing area already being reinvented as a hub for 21st-century industry, creativity and urbane living.

Seattle-based Amazon, which set out last year to situate one additional headquarters but now may reportedly open two, has declined to comment on its plans. But people familiar with the talks said this week that Long Island City and Crystal City have emerged as front runners for the “HQ2” project and its total of 50,000 jobs.

A look at two communities said to be at the top of Amazon’s list.

MTV-SNOWGLOBE MUSIC FESTIVAL

MTV acquires SnowGlobe Music Festival

NEW YORK (AP) — MTV is expanding its live events business in the U.S. by acquiring the SnowGlobe Music Festival.

The three-day New Year’s Eve festival takes place in South Lake Tahoe, California. This year’s lineup includes Above & Beyond, Diplo, Eric Prydz, Rezz and RL Grime headlining among more than 40 artists. SnowGlobe will also showcase extreme winter sports demonstrations.

Terms were not disclosed in today’s announcement. MTV says it’s taking the next step in “its resurgence by expanding deeper into live events.”

MTV plans to reinvent its New Year’s Eve coverage, connecting SnowGlobe with MTV’s Times Square studio in New York. The cable network also plans to expand SnowGlobe to additional dates and locations worldwide and leverage its team to launch other new events.

MTV launched MTV Studios in June.

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