Today's edition of the Saxo Morning Call features the SaxoStrats team discussing the continuing weakness of the US dollar as commodity prices recover ground and in the wake of key US equity indices hitting all-time highs Thursday.
Article / 30 January 2018 at 14:32 GMT

Watch US healthcare on Amazon/Berkshire/JPMorgan deal — #SaxoStrats

Head of Equity Strategy / Saxo Bank
  • Amazon, Berkshire, JPMorgan announce healthcare partnership
  • New initiative set to provide healthcare to US employees
  • Deal sends shares of traditional healthcare giants down in pre-market
By Peter Garnry

We have major news out in the US pre-market session... Amazon, Berkshire and JPMorgan are about to shake up the US healthcare system.

This is major risk-off factor for existing US healthcare providers, whose valuations reflect an above-normal profit environment in a system that is rigged against the consumer.
As we discussed back in November 2016, US health care is broken. The country spends more than twice as much of its current GDP on health care as does the second-ranked nation, and this is sucking much-needed resources out of the economy that could be spent on improving infrastructure, education, and quality of life. 
The Bloomberg report published today claims that Amazon, Berkshire, and JPMorgan are setting up a separate health care company to provide healthcare services to their US employees without any profit-making incentive.

Shares of UnitedHealth, Aetna, Cigna, Express Scripts etc. are all down more than 5 % in pre-market trading 
Here is a breakdown of US healthcare providers and service companies in our Equity Radar…given this single event the total score should be ignored for now:

Equity Radar
Source: Saxo Bank

— Edited by Michael McKenna

Peter Garnry is head of equity strategy at Saxo Bank 
Kostis Kostis
Did you get this list from saxotrader. I mean to seperate stocks by sector?
Thank you
buelte buelte
very useful, thank yo Peter
btw. , how does relay to President Trump's constant nagging to derail 'Obama Care', ie. is this the other side of the same coin to reboot US healthcare?
Peter Garnry Peter Garnry
@Kostis no its from our quant model Equity Radar, which we plan to open up to clients in the near future
Peter Garnry Peter Garnry
@buelte We see this partnership as corporate America's reaction to the inaction in Washington on some of the most pressing issues. US health care system is probably one of the few examples we have where the profit incentives become counterproductive for society and the economy.


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