Yet another UnitedHealth Scandal

22nd May 2025

Another scandal plagues UnitedHealth which is already embroiled in a multitude of scandals. OpenAI acquired Jony Ive's startup in an incredible $6.5 billion deal. Bitcoin soars to the 5th most valuable asset per market cap worldwide. Finally, Poundland may be selling for one Great British Pound. It's going to be a good one today, folks.

Jony Ive and OpenAI's Sam Altman

Major Headlines 

• UnitedHealth Faces Scrutiny Over Reported Nursing Home Deals

• UnitedHealth shares dropped more than 6% on Wednesday following a report by The Guardian that the company allegedly made undisclosed payments to nursing homes to reduce hospital transfers. According to the investigation, these cost-cutting tactics saved the company millions but may have come at the expense of residents’ well-being.

  This latest report adds to a growing list of challenges facing the healthcare giant. Already dealing with the fallout from a cyberattack at its Change Healthcare unit, UnitedHealth is also under the cloud of ongoing criminal and civil investigations. The recent resignation of CEO Andrew Witty has only deepened investor uncertainty. The stock has tumbled more than 39% this year, in stark contrast to the broader Dow, which is down just 0.6%.

  UnitedHealth has pushed back on the claims, stating that the U.S. Department of Justice thoroughly investigated the matter over several years. The company says the DOJ reviewed thousands of documents and interviewed multiple witnesses before ultimately deciding not to pursue the case, citing a lack of merit.

  Still, the pressure on the company isn’t letting up. HSBC downgraded the stock from “hold” to “reduce” and slashed its price target to $270—the lowest among analysts. With concerns around rising medical costs, pharmacy pricing pressures, and potential Medicaid cuts, investors are hoping that former CEO Stephen Hemsley—who has returned to lead the company—can steady the ship. As one fund manager put it: “Hemsley brings the leadership and experience UnitedHealth needs right now to rebuild trust.” Bloomberg 

• OpenAI Buys Jony Ive’s Startup ‘io’ in $6.4B Deal to Push into Hardware

• OpenAI is stepping firmly into the hardware space with a $6.4 billion acquisition of io, a startup founded by none other than Jony Ive—the celebrated designer behind the iPhone. It’s the biggest deal OpenAI has made to date, and signals a bold move into product design and device development.

  The announcement, shared via a blog post by Ive and OpenAI CEO Sam Altman, revealed that their collaboration has been quietly brewing for two years. “A collaboration built upon friendship, curiosity and shared values quickly grew in ambition,” the pair wrote. Though details remain sparse, they hinted that early brainstorming has already taken shape in the form of tangible designs.

  Founded just a year ago, io is part of Ive’s larger creative venture, LoveFrom—a collective of artists, engineers, architects, and designers. Since leaving Apple in 2019, Ive has stayed mostly out of the spotlight, but his design influence remains iconic, from the original iMac and iPod to the iPhone and Apple Watch. Now, he’s turning his attention to shaping the future of AI hardware.

  While Ive won’t be joining OpenAI as an employee, his team will integrate closely with OpenAI’s research and engineering groups in San Francisco. His company will also take the lead on design across all of OpenAI, including software. Though neither company has launched a physical device yet, this move—combined with recent hardware hires at OpenAI—makes it clear that something big is on the horizon. Financial Times 

• Crypto Comeback: Bitcoin Soars to Record High on Investor Buzz

• Bitcoin soared to a new all-time high on Wednesday, surpassing its previous January peak, as investor sentiment in the crypto market continues to improve following a recent downturn triggered by trade tensions. The world's most well-known cryptocurrency climbed as high as $109,760 before settling at around $108,117, up 1.1% on the day.

  Several factors have helped drive this latest rally. Easing trade tensions between the U.S. and China have boosted risk appetite, while Moody’s recent downgrade of U.S. sovereign debt has encouraged some investors to turn to alternatives like Bitcoin. According to Antoni Trenchev, co-founder of crypto platform Nexo, “Bitcoin is now in blue sky territory,” backed by strong institutional interest and a more favourable U.S. regulatory climate.

  Bitcoin often behaves like high-growth tech stocks, tending to rise when markets are optimistic. That pattern is evident again, as the Nasdaq has jumped 30% since early April, while the dollar has weakened — further lifting Bitcoin’s appeal. Traditional financial institutions are also warming up to crypto: JPMorgan CEO Jamie Dimon recently confirmed that the bank will allow clients to buy Bitcoin, and Coinbase, a major crypto exchange, was just added to the S&P 500.

  Looking ahead, market watchers believe there's still room for growth. With Bitcoin in the post-halving phase — a period that historically delivers strong returns — some analysts, like Trenchev, suggest a price target of $150,000 by 2025 is not out of reach. Meanwhile, ether, the second-largest cryptocurrency, bucked the trend slightly and dipped 0.5% to $2,513. The New York Times 

  
  

• Pepco Set to Offload Poundland by September – Possibly for Just £1

• Discount retail giant Pepco is planning to sell its struggling Poundland business by September, potentially for as little as £1, as it grapples with ongoing challenges like rising costs and lagging sales.

  In a trading update, Pepco reported that Poundland's revenue dropped 6.5% in the first half of the year, reflecting what it described as “highly challenging trading conditions.” The brand now expects to post underlying earnings of just €0 to €20 million—well below earlier forecasts of €50 to €70 million.

  This poor performance contrasts sharply with the broader Pepco Group, which saw revenues rise 9.3% to £2.17 billion. Pepco cited stock clearance issues and product availability as key factors behind Poundland’s underperformance. A turnaround strategy is now in motion, focusing on streamlining in-store offerings and reinforcing core product categories. Barry Williams, who was reappointed as Poundland’s Managing Director in March, is leading the charge.

  While Poundland once flourished during tough economic times, it's struggled in recent years to keep pace with rivals like B&M and Home Bargains. Rising wages, increased national insurance contributions, and supply chain disruptions—such as those linked to the Red Sea—have only made matters worse. Pepco is reportedly in active talks to exit the business by the end of its financial year in September. Sources suggest the sale price may be symbolic—essentially £1—due to the costs a new owner would need to absorb. Gordon Brothers is said to be the frontrunner in the deal, which could result in significant store closures and around 200 job losses. CityAM 

Minor Headlines 

• Banco BPM Tells UniCredit to Walk Away If It Can't Meet Government Terms. Wall Street Journal 

• JPMorgan’s Jamie Dimon Flags Potential Stagflation Risk in U.S. Bloomberg 

• AT&T to Acquire Lumen’s Consumer Fiber Unit in $5.75 Billion Deal. Financial Times 

• Nestlé to Streamline Operations and Double Down on Core Business, CEO Says. Financial Times 

• Trump-Backed Tax Legislation Moves Closer to House Vote on Thursday. Financial Times 

• South Korea Plans Relief Measures for Food Exporters Facing U.S. Tariffs. Reuters 

• Lenovo Reports 64% Drop in Q4 Profit Amid Market Headwinds. Reuters 

• Tesla Grants CFO Record $139M Pay Package. Wall Street Journal 

Gen Z Word of the Day 

Cancel Culture

Cancel culture is a form of shaming the actions or opinions of a public figure, company or organization.