Business & Tech

TALKING POINTS

CVS receives subpoena from DEA over handling of opioids, controlled substances

PHARMACIES

CVS receives subpoena from DEA over handling
of opioids

CVS Health Corp. said it received a subpoena on behalf of the Drug Enforcement Administration, asking the company for information about its handling of opioids and other controlled substances. Federal authorities are investigating potential violations of two federal laws: the Controlled Substances Act, which regulates addictive drugs, and the False Claims Act, which prohibits companies from improperly benefiting from government health programs. The subpoena was sent in January by the Justice Department of behalf the DEA, CVS said in a regulatory filing Tuesday. — BLOOMBERG NEWS

FINANCE

Goldman Sachs loses advisers
who oversaw
$10b in assets

Goldman Sachs, which has made expanding wealth management a priority, lost advisers overseeing $10 billion in assets to UBS and First Republic Bank. A team headed by Denis Cleary and Gregory Devine with $6 billion in assets under management will move to UBS and maintain offices in Boston and Los Angeles, the Zurich-based bank said Tuesday in a statement. The group has clients in more than 25 states. Goldman also lost private-wealth advisers to First Republic, according to people with knowledge of the matter. Brian Zakrocki and Joe Wladyka, who helped manage about $4 billion in assets, will be joining the bank, said the people, who asked not to be identified discussing personnel matters.
— BLOOMBERG NEWS

RETAIL

Walmart had
an unhappy holiday season

Walmart disappointed on multiple fronts Tuesday, falling short on its fourth-quarter targets and full-year outlook after shoppers scaled back on clothing, toys, and video games during the holiday shopping season. But analysts say a key question remains: How will coronavirus affect the world’s largest retailer? The retail giant, which has hundreds of stores in China and gets about 15 percent of its products from factories there, says that while it is monitoring the outbreak, it has no immediate plans to lower its sales forecast because of it. Though consumers continue to prop up much of the US economy, there are mounting fears the public health crisis in China will have a cascading economic impact. A number of major companies, including Tesla, Nike, and Disney, have warned that the virus could take a long-term toll on earnings, and Apple this week said it would miss its quarterly revenue goals because of slowing iPhone production in China. Global markets remained jittery on Tuesday as investors looked for signs that other major brands may also take a hit. — WASHINGTON POST

AVIATION

Nonprofit created to improve Wi-Fi
on airplanes

Advertisement

Air travel and glitch-free Internet access are often considered mutually exclusive, thanks to the technical difficulties associated with making Wi-Fi work at 40,000 feet. For the airlines, a satisfying online experience is even more elusive. The hardware, software, maintenance, and inability to easily switch service providers combine for a very expensive headache. But there may be some good news on the horizon — a new era of ground-quality Internet connectivity that could save carriers billions of dollars. The Seamless Air Alliance, a nonprofit group of 30 companies, says its new tech architecture will make in-flight connectivity systems modular, with open interfaces and components that can easily be swapped out. The alliance includes Airbus and Delta Air Lines, with such equipment makers and satellite companies as Panasonic Avionics, Intelsat, Nokia, and Vodafone. Together, they want to introduce a global standard, using protocols derived from the cellular and Wi-Fi industries. — BLOOMBERG NEWS

THEME PARKS

Cinderella’s castle at Disney World gets the fairy godmother treatment

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Even Cinderella needs an “Extreme Makeover: Home Edition.’’ Disney officials said Monday that the iconic Cinderella Castle at Walt Disney World in Florida would be renovated over the next several months. The most noticeable changes will be the addition of gold trim to most of the castle and the darkening of the blue hue on the castle’s turrets. The castle is located in the Magic Kingdom park. Work on the castle will last through the summer. Despite the work, shows at the castle will continue as usual, Jason Kirk, a vice president of the Magic Kingdom, said in a blog post. The renovation is coming during the 70th anniversary of the release of the 1950 classic animated film “Cinderella.’’ — ASSOCIATED PRESS

INTERNATIONAL

European Union adds four countries to its
tax haven blacklist

The European Union has added four countries and jurisdictions to its blacklist of tax havens, including the British overseas territory Cayman Islands. EU finance ministers decided to also add Palau, Panama, and the Seychelles to the list of jurisdictions that have not implemented the necessary tax reforms to be in line with EU standards. The EU has set up the system to sanction those it deems guilty of unfairly offering tax-avoidance schemes. Eight jurisdictions were already listed: American Samoa, Fiji, Guam, Oman, Samoa, Trinidad and Tobago, US Virgin Islands, and Vanuatu. The addition of the UK territory of the Cayman Islands stood out considering that Britain just left the EU at the end of last month. — ASSOCIATED PRESS

FINANCE

Franklin Resources and Legg Mason
to merge

Franklin Resources and Legg Mason helped pioneer asset management in the 20th century. On Tuesday, the venerable but fading names said they will combine in an effort to compete, as low-cost index funds upend their industry. In an era when traditional stock-pickers are under intensifying pressure, San Mateo, Calif.-based Franklin agreed to buy Legg Mason to create a firm with a combined $1.5 trillion in assets. The deal, valued at nearly $4.5 billion, shows how much the fund industry has transformed since the two companies were founded — Franklin started in 1947 and Legg Mason’s precursor firm began in 1899. Customers are focusing more than ever on costs for money management, and a few large index fund managers dominate the field in managed assets globally. — BLOOMBERG NEWS

RETAIL

Struggling Bed Bath & Beyond
to sell personalization business

Bed Bath & Beyond Inc. is selling its PersonalizationMall.com business amid efforts to slim down, renew the focus on its core home-furnishings business, and reverse years of stagnant sales. The company agreed to sell the personalized gift company for $252 million to 1-800-Flowers.com, it said Tuesday in a statement. PersonalizationMall.com will continue to provide products and services to Bed Bath & Beyond and its Buybuy Baby unit after the deal closes, which is expected in its fiscal 2020 first quarter. — BLOOMBERG NEWS