'Houthis may not be targeting US warships, Pentagon says'

 Waves of attacks by the Iran-backed Houthi group in Yemen may not be ultimately targeting U.S. warships, even though the U.S. Navy has responded by shooting down drone aircraft and missiles in recent weeks, the Pentagon said on Monday.

The United States has blamed the Houthis for a series of attacks in Middle Eastern waters since war broke out between Israel and the Palestinian militant group Hamas on Oct. 7.

In the latest incidents, three commercial vessels came under attack in international waters in the southern Red Sea on Sunday. The Houthis acknowledged launching drone and missile attacks against what they said were two Israeli vessels in the area.

The Carney, a U.S. Navy destroyer, shot down three drones on Sunday as it answered distress calls from the commercial vessels. The U.S. military says the three vessels were connected to 14 separate nations.

"The Carney took action as a drone was headed in its direction. But again, we can't assess that the Carney at this time was the intended target," said Pentagon spokesperson Sabrina Singh.

The United States and Britain have condemned the attacks on commercial shipping in the Red Sea, blaming Iran for its role in supporting the Houthi militants behind them.

The Houthi group, which controls most of Yemen's Red Sea coast, had previously fired ballistic missiles and armed drones toward Israel and vowed to target more Israeli vessels.

U.S. national security officials are concerned about the risk of a sudden, deadly regional escalation as the Israel-Hamas war rages, given the Houthi attacks in the Red Sea and separate attacks by Iran-backed militia against U.S. troops in Iraq and Syria.

The Pentagon says it killed five militants in Iraq on Sunday as they prepared to attack U.S. troops with a drone.

Singh stopped short of using language that could suggest any imminent U.S. retaliation against the Houthis.

"There have certainly been irresponsible actions taken by the Houthis, especially when it comes to targeting commercial vessels that are transiting international waters," she said.

Asked if the United States might retaliate, Singh said: "If we decide to take action against the Houthis, it will of course be at a time and place of our choosing.

"I won't get ahead of the (defense) secretary. I won't go ahead of the president on any actions. But we always reserve the right to respond," Singh said.

Yemen erupted in civil war after the Houthis, members of the Zaydi sect of Shi'ite Islam, seized Sanaa, the capital, in 2014. A Saudi-led coalition intervened the following year.

Although a U.N.-brokered ceasefire collapsed in October 2022, Yemen has enjoyed relative calm as the Houthis and Saudi Arabia negotiate a settlement.

The White House has left open the possibility of potentially designating the Houthi rebel group a terrorist organization, which would reverse one of the Biden administration's first acts after Joe Biden took office as president in January 2021

https://www.marketscreener.com/news/latest/Houthis-may-not-be-targeting-US-warships-Pentagon-says-45496771/

'Yellen heads to Mexico to boost cooperation on fentanyl, supply chains'

 U.S. Treasury Secretary Janet Yellen will travel to Mexico City this week to promote cooperation with Mexican counterparts on combating illicit finance and the trafficking of fentanyl, along with strengthening Mexico's role in U.S. supply chains, Treasury officials said on Monday.

Yellen's Dec. 5-7 trip will include meetings with Mexican President Andres Manuel Lopez Obrador, and the country's central bank governor and finance minister, among others, Treasury said in a statement. 

https://www.marketscreener.com/news/latest/Yellen-heads-to-Mexico-to-boost-cooperation-on-fentanyl-supply-chains-45496828/

Veeva Systems Inc.: Jefferies reduces the target price from USD 265 to USD 225.

 maintains its buy recommendation 

https://www.marketscreener.com/quote/stock/VEEVA-SYSTEMS-INC-14551091/

As Bayer confronts mounting Roundup losses, all eyes on Philadelphia trial

 With Bayer facing investor pressure to resolve thousands of lawsuits over its Roundup weedkiller after being hit with $2 billion in verdicts in recent weeks, all eyes are on a trial wrapping up in Philadelphia.

Plaintiffs have won the last four trials over their claims that the product causes cancer, each time securing a larger verdict. Those losses ended a nine-trial winning streak for Bayer, shattering investor and company hopes that the worst of the Roundup litigation was over.

In the ongoing case, which kicked off Nov. 6 in the Philadelphia Court of Common Pleas, Pennsylvania resident Kelly Martel claims she developed non-Hodgkin lymphoma from using Roundup. Her case will help test whether plaintiffs' recent victories were an aberration, or the payoff from favorable court rulings and a shift in plaintiffs' strategy.

Interviews with lawyers on both sides, and a review of trial transcripts, suggest several factors could explain the difference in outcomes. Those include judges' rulings allowing jurors to hear testimony about regulatory issues related to Roundup, which Bayer has called misleading, and a new emphasis by plaintiffs lawyers on chemicals in the product other than its active ingredient, glyphosate.

Lawyers for Martel did not immediately respond to requests for comment. Bayer maintains that Roundup is safe and said in a statement that it would "continue to try Roundup cases as the science is strongly on our side."

The German pharmaceutical conglomerate acquired Roundup as part of its $63 billion purchase of U.S. agrochemical giant Monsanto in 2018, amid opposition from some of its own shareholders.

In 2020, the company agreed to pay up to $9.6 billion to settle then-existing Roundup lawsuits, but was not able to resolve claims that would be filed in the future. It is currently facing about 50,000 lawsuits.

CHANGE IN FORTUNE

Bayer's trial fortunes changed abruptly when plaintiffs began winning in October, most recently securing a $1.56 billion verdict for three people. Bayer said it will appeal the verdicts on numerous grounds.

Every trial depends on specific facts in the case, and juries, which deliberate in secret, are inherently unpredictable. Both sides, however, point to factors they say are behind the shift.

In court filings and public statements, Bayer has attributed its recent losses to judges allowing juries to hear what it considers to be improper evidence.

Specifically, the company has said, jurors were allowed to hear of a ruling last year by a federal appeals court ordering the U.S. Environmental Protection Agency (EPA) to reconsider its 2020 finding that glyphosate probably did not cause cancer.

Bayer says plaintiffs' lawyers were allowed to imply that the ruling meant glyphosate was unsafe, when the court only found that the agency had not followed required procedure. The EPA still states that glyphosate is unlikely to be capable of causing cancer.

The company also said plaintiffs' lawyers in recent trials used the failure of some European Union member states to re-approve glyphosate to suggest that its approval in Europe would soon expire. In fact, unanimity was not required for European regulators to re-approve the product, which they did last month.

Plaintiffs' lawyers reject the notion that the evidence about regulators explains their wins.

"That's just not true," Tom Kline, who along with co-counsel Jason Itkin represented Ernest Caranci, the second plaintiff to prevail at trial in October. He and others say that new studies in the last year supporting a cancer link are one reason for the wins, although those studies were used in some cases Bayer won as well.

The World Health Organization's cancer research agency concluded in 2015 that glyphosate was likely capable of causing cancer, though it did not reach a conclusion about whether it posed a risk in real world use.

Bart Rankin, a lawyer for plaintiffs in the $1.56 billion verdict, pointed to a more concrete shift in strategy.

In recent trials, plaintiffs have placed greater emphasis on the theory that known toxins in Roundup other than glyphosate, including formaldehyde, arsenic and others, enhanced its cancer-causing potential. Bayer witnesses and lawyers have said these substances are present in only trace amounts.

While plaintiffs' lawyers in earlier trials mentioned other chemicals, transcripts of recent closing arguments suggest they have become more prominent. Rankin devoted a section of his closing argument to what he called the "cocktail" of harmful chemicals in Roundup.

"Ladies and gentlemen, they are carcinogens, and when you stack them one on top of the other, it makes an impact," he told the jury.

Bayer said in early November it would remain very selective when considering settlements of Roundup cases and reassured investors in a call in late November that it has reserves to deal with the litigation. The company has set aside about $6.5 billion for that purpose.

Nonetheless, if plaintiffs prove able to replicate recent wins, it will increase pressure on Bayer, which faces other significant setbacks, including stopping a late-stage study of what it hoped would be a blockbuster anti-clotting drug.

More Roundup trials are expected in 2024. Martel's case could go to jurors later on Monday. 

https://www.marketscreener.com/quote/stock/BAYER-AG-436063/news/As-Bayer-confronts-mounting-Roundup-losses-all-eyes-on-Philadelphia-trial-45492926/

Genentech's MS drug on partial hold in US after liver enzyme elevations in 2 patients

 After heralding data last month showing that the multiple sclerosis candidate fenebrutinib may have crossed the blood-brain barrier, Genentech revealed quietly last week that the program has been placed on a partial clinical hold by the FDA in the U.S.

In an update posted Thursday, Nov. 30, the Roche unit said that the FDA placed fenebrutinib’s clinical program on partial hold as a result of two recent cases of elevated liver enzymes. The cases were discovered in the phase 3 FENhance relapsing multiple sclerosis (RMS) studies, according to the update. The patients did not experience symptoms and have returned to normal levels after treatment was discontinued.

But the cases were enough to get the attention of the FDA. Genentech said that new enrollment in the U.S. is now paused for the FENhance I program. FENhance II in RMS and FENtrepid for primary progressive MS are already fully enrolled. U.S. patients who have received the study drug for more than 70 days will continue in all of the studies.

But Genentech said that a small number of patients who had not received the study drug for that long will have to discontinue treatment.

“Patient safety is Genentech’s highest priority, and we are working closely with the independent data monitoring committee, and investigators around the world,” Genentech said. The company noted that 2,500 patients have received fenebrutinib across the phase 1 through 3 programs in several diseases including MS and other autoimmune disorders.

Outside the U.S., Genentech has trial sites for the studies in the U.K., Europe, South America, Central America, Asia, Africa, Australia, Canada and Russia, according to the clinical trial record for fenebrutinib.

The therapy is an oral Bruton’s tyrosine kinase (BTK) inhibitor that is meant to block the function of BTK, which regulates B-cell development and activation, but is also involved in the activation of the innate immune system.

In October, Roche touted fenebrutinib’s "best in disease" potential with phase 2 data from the FENopta study in RMS that showed a relative reduction of 90% in new or enlarging gadolinium-enhancing T1 lesions as measured by MRI scan at 12 weeks, hitting the trial’s primary endpoint.

On a secondary endpoint of T2 lesions, there was a relative reduction of 95% in the same period. The company also said the therapy crossed the blood-brain barrier, a difficult feat for any drug.

https://www.fiercebiotech.com/biotech/genentechs-ms-drug-partial-hold-us-after-liver-enzyme-elevations-2-patients

NY Lawmaker Claims "Smoking Gun" In NYC Migrant Voter Fraud Scheme

 A New York state lawmaker says she's found 'smoking gun' evidence that New York City is trying to illegally register migrants to vote in upcoming elections.

"On page 50 of this contract, there is an entire section dedicated to voter registration," said Rep. Nicole Malliotakis (R-NY) on Sunday, after she and four other Staten Island Republicans claimed a city contract with a nonprofit hired to run a Staten Island shelter includes a stipulation that voter registration forms are to be distributed among asylum seekers.

"We believe this is the smoking gun that proves what we’ve been saying all along — that the city intends to register non-citizens to vote."

The contract in question, between the city and Homes for Homeless, governs the operation of the shelter at the site of a shuttered nursing home in Midland beach.

According to Malliotakis, who obtained the document via a state Freedom of Information Law request, includes a provision that the nonprofit will act in accordance with the NYC charter, which states that they "shall provide and distribute voter registration forms to all persons," which are to be made available in Spanish and Chinese. In another portion, the nonprofit "shall not inquire about a client or potential client’s immigration status" unless it pertains to the services in question.

It is unclear if the language is standard in city contracts for shelter and housing services.

Under city law, Big Apple voters must be US citizens, have been a New York City resident for at least 30 days and be at least 18 years of age before Election Day.

A measure passed overwhelmingly by the City Council in December 2021, opened the door for green card holders and other legal non-residents to qualify to vote in local elections — although not in state or national races — but was struck down by a Staten Island judge.

Supreme Court Judge Ralph Porzio issued a permanent injunction blocking the law in June 2022, but that ruling is being appealed by Mayor Eric Adams’ administration. -NY Post

While it's unclear if the language is standard in city contracts for shelter and housing services, the city's Department of Social Services hit back on Sunday, saying in a statement "These allegations are false and baseless. DHS is legally required to include language around voter registration in shelter contracts and this guidance applies only to eligible clients who are citizens, and would clearly not apply to asylum seekers in shelter."

What?

"They are bringing to you voter registration of people who are here illegally, and as soon as they’re here for 30 days, how is it they’re entitled to vote?" said State Assemblyman Sam Pirozzolo in comments to reporters. "What’s the first thing they’re going to vote for? Better hotel rooms?" he quipped.

"How do they even understand the American system of government?"

"There is nothing more important than preserving the integrity of our election system," Malliotakis said in a statement. "The right to vote is a sacred right given only to United States citizens, and certainly not one provided to those who crossed over our border illegally and made their way to New York City last month. The City better not be acting in violation of the judge's ruling that struck down the noncitizen voting law that would have allowed 800,000 noncitizens with a Green Card or Work Authorization and who have resided in New York City for 30 days, to vote."

And watch the press conference here.

https://www.zerohedge.com/political/ny-lawmaker-claims-smoking-gun-nyc-migrant-voter-fraud-scheme

Nvidia Insiders File Paperwork To Dump 370,000 Shares

 Although Nvidia reported 'blowout' third-quarter earnings, an ominous sign that a peak in share price could be imminent is a report from Bloomberg that reveals corporate insiders are planning to sell the most stock in terms of dollar value in years. 

The artificial intelligence bubble has fueled a 349% rally in Nvidia shares from $112 per share in October 2022 to over $500 by mid-November. As of Monday afternoon, Nvidia shares are down 10% off the peak, trading around $454. Insiders know better than anyone else about what the future holds for share prices.

New data from Washington Service shows insiders in November sold or filed paperwork to sell 370,000 shares worth about $180 million - the most in dollar amount terms in at least six years. 

Meanwhile, in Nvidia's earnings call, executives warned of a "significant" slowdown in China sales and gave fourth-quarter guidance that was also above consensus and, at best, matched the top end of the whisper range, which may have disappointed some investors as it shows that growth limits might have been hit. 

With that being said, is the AI bubble about to follow the same fate as the Covid/crypto implosion?

Google web searches of "ChatGPT" continue to wane after peaking in late spring. 

The number of times "ChatGPT" has been featured in news headlines also continues to slide. 

We have already pointed out that the AI bubble has likely peaked via an analysis by Deutsche Bank last month titled "Popping The AI Bubble: Companies That Drone On About AI In Earnings Calls See Their Shares Underperform."

So, what insights do Nvidia executives and directors have about future growth that the market does not have? 

https://www.zerohedge.com/markets/nvidia-insiders-file-paperwork-dump-370000-shares