US makes first Gaza aid airdrop

Good morning. Here's what happened overnight and what you need to know today.

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1.

Israel-Palestine war: The US has made its first airdrop of humanitarian aid for Gaza, following the death of over 100 Palestinians who were killed while trying to pull goods off an aid convoy in Gaza City on Thursday. The airdrop is expected to be the first of many into Gaza, after White House national security spokesperson, John Kirby ,said on Friday that the airdrops were being planned to deliver emergency humanitarian assistance in a safe way to people on the ground. In a post on X President Biden said: “The amount of aid flowing to Gaza is not nearly enough and we will continue to pull out every stop we can to get more aid in.” (Associated Press)

2.

Insurance inquiry: Former head of the ACCC, Allan Fels, said that the insurance sector should be subject to a “very public” inquiry to look into rapid price increases. After three leading insurers posted a combined $1.3 billion in profits during February's earnings season, Fels raised concerns about competition in the sector. The ACCC is currently investigating insurance pricing in Northern Australia while a parliamentary inquiry is examining the insurance industry’s response to the 2022 floods. Fels stated “There is massive public discontent with the rise in insurance premiums and a deep concern they greatly exceed inflation.” Current head of the ACCC Gina Cass-Gottlieb noted that it is up to the government to initiate an inquiry into the sector. (The Australian)

3.

Pakistan elections: Shehbaz Sharif has been elected Pakistan’s prime minster by the country’s newly formed parliament, three weeks after the country went to the polls. Sharif beat Omar Ayub with 201 votes to Ayub’s 92 in the parliamentary vote, and will return to the role of PM which he held until August 2023 when parliament was dissolved ahead of the elections. While candidates backed by the imprisoned Imran Khan gained the most seats, the Pakistan Muslim League-Nawaz and the Pakistan Peoples Party agreed to form a coalition government, enabling Sharif to be elected. (Reuters)

4.

Collateral damage: Ongoing conflict in the Red Sea is threatening key underwater internet cables. The majority of internet traffic between Europe and East Asia is currently run through underwater cables that lie in the narrow Southern end of the Red Sea, an area which has become increasingly unsafe due to attacks by Iran-backed Houthi militia on vessels since the Israel-Hamas war broke out in October. Three internet cables suddenly dropped service on February 24, immediately worsening service in India, Pakistan and parts of East Africa. Some telecom experts have blamed the outage on an abandoned cargo ship which has been floating in the area since it came under Houthi attacks earlier in February. Yemen’s telecom ministry has denied responsibility for the cable failures. (Wall Street Journal)

5.

Called out: Macquarie has written down almost its entire investment in Indian edtech startup Byju’s, weeks after Julius Baer accused it of charging fees based on an inflated valuation. Macquarie cut the carrying value of its investment in Byju’s by around 98%, having invested hundreds of millions in the startup in 2021. According to unnamed sources cited by Bloomberg, Julius Baer's CIO, Yves Bonzon, sent a letter to Macquarie Capital in January, saying the firm was too slow to revalue the stake and provide information after the company became increasingly buffeted by growing losses and scandal. Despite Byju’s plummeting market valuation, Bonzon said Macquarie continued charging clients based on a 2022 funding round that valued Byju’s at $22 billion, even after other investors marked down their valuations by as much as 95%. (Bloomberg)(AFR)

6.

Up in smoke: Tobacco giant Philip Morris is facing a lawsuit that alleges the company’s Zyn product is addictive and harmful to young people. When it reported Q4 and FY 2023 results in February, the company said it shipped 116.3 million cans in the US, representing growth of 78.2%. The lawsuit filed by a single plaintiff, Bailey Wolters, alleges that he has experienced addiction and dental issues due to his use of Zyn. The suit argues that Philip Morris and Match, the Swedish company which used to own Zyn, failed to warn users about the risk of addiction and other harmful effects. It also states that Zyn is growing in popularity for teens due to the nature of its marketing. (Philip Morris 2023 Results)(Bloomberg)

7.

In the family: Boeing is in talks to acquire Spirit AeroSystems, the fuselage supplier which is at the centre of quality issues plaguing the Boeing 737 Max airliner. Boeing confirmed its plans on Friday, just days after the Federal Aviation Administration issued the company with a 90 day ultimatum to address quality lapses with its aircraft. The plane maker stated that the reintegration of Boeing and Spirit AeroSystems' manufacturing operations would further strengthen aviation safety, improve quality and serve the interests of our customers, employees, and shareholders. (Boeing Press Release)(Financial Times)

8.

Easier to outsource: GHO Capital has put biotech research group, FairJourney Biologics, on the market for over €1 billion ($1.66 billion). The healthcare investor GHO has tapped advisors from JP Morgan to supervise the sales process for the biotech company which has contributed to research behind 14 antibody treatments being studied in clinical trials treating a range of illnesses, from cancer to autoimmune conditions. GHO’s decision to sell was prompted by bidder interest, according to the Financial Times, as the pharmaceutical sector increasingly moves toward outsourcing for research, development and manufacturing to reduce costs. (Financial Times)