Moderna soars and markets rebound from omicron sell-off
James Warrington
·38-min read
moderna covid-19 vaccine - ARND WIEGMANN/Reuters
Wall Street traders added more than $15bn to Moderna’s value after it confirmed that a new vaccine targeting the omicron strain of Covid would be ready by early next year if needed.
The 11pc increase to $366 means its shares have soared by almost a third in the space of two trading days in New York.
The drug maker is now the best performer on the S&P 500 this year and is worth almost $150bn, although that is still only half the value of rival Pfizer.
Edward Tenthoff, a Piper Sandler analyst, said in a note: “Moderna is in a better position to develop novel Covid-19 vaccines and now has capacity to manufacture several hundred million vaccine doses every month. [Covid] is not going away and will provide years of future revenues.”
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Paul Burton, the chief medical officer, said hundreds of employees were mobilised on Thanksgiving last Thursday to start work on the new version of the jab.
Drugmakers are racing to determine whether adjustments to their vaccines will be necessary to curb the latest variant. They had been making preparations for such an eventuality for months.
Moderna’s rivals such as Johnson & Johnson and BioNTech are also adjusting their formulations to tackle the variant.
Germany’s BioNTech, which produces a jab with Pfizer, is hoping to have a jab ready within 100 days.
This process will be quicker for Moderna and BioNTech due to the messenger RNA technology used in their vaccines.
Stock markets rebounded on Monday following an omicron-induced crash on Friday. Traders were spooked by new travel restrictions around the world that sent oil prices sliding.
The efforts announced by vaccine makers helped stocks regain ground, along with a statement from the World Health Organisation indicating that omicron’s symptoms appear to be mild.
The FTSE 100 ended almost 1pc higher, with Shell and BP among the biggest risers, while the S&P 500 erased its November losses, led by gains in technology and retail shares.
06:20 PM
Wrapping up
That's all from the business live blog today, thank you for staying with us! Here are some of our latest stories:
Clearview AI faces £17m fine amid UK watchdog investigation
Clearview AI faces a £17m fine as the UK's data protection watchdog said it may have collected images from a “substantial number” of British people without their knowledge.
Images in facial-recognition firm’s database “are likely to include the data of a substantial number of people from the UK and may have been gathered without people’s knowledge from publicly available information online, including social media platforms,” the Information Commissioner’s Office said.
Clearview sifts through photos from social media to help law enforcement agencies.
Clearview AI CEO Hoan Ton-That says his tech and intentions have been misinterpreted and that it "breaks [his] heart" that his company has been unable to assist UK law enforcement agencies "to investigate cases of severe sexual abuse of children in the UK."
Oil producer Lundin eyes potential record-breaking sale
Oil producer Lundin is considering to sell itself alongside other strategic options.
The potential takeover could be one of the largest European oil and gas deals in years, after the Swedish group jumped 10pc today to 96.8bn kronor (£8bn).
Lundin is working with an adviser, Bloomberg reported.
It owns a stake in Norway’s giant Johan Sverdrup field, which is operated by Equinor, and is also the operator of the Edvard Grieg oil field on the Norwegian continental shelf.
Johan Sverdrup oilfield North Sea lundin equinor - NTB SCANPIX/REUTERS
05:36 PM
US stocks continue rally
Let's have a look at US stocks now. Wall Street has continued its rally, with bonds falling as global markets regained some calm.
All major groups in the S&P 500 rose, with the gauge rebounding from Friday’s rout and erasing its November losses. The Nasdaq 100 climbed more than 2pc, led by Tesla and Apple.
BioNTech, Moderna and Johnson & Johnson were other strong risers after announcing efforts to tweak their shots so they can target the Covid-19 omicron variant.
"Equity markets have rebounded this morning following the reassuring noises over the weekend. But the key point is that markets had been priced for perfection – something approaching a goldilocks scenario of continuing economic recovery alongside continued negative real rates," said Neil Shearing, group chief economist at Capital Economics.
"If Omicron proves a false alarm – similar to the Beta strain, which was detected last summer – then risk appetite could quickly be restored. But the sharp reaction in markets to this latest twist in the pandemic underlines the vulnerability of risky asset prices with valuations at such rich levels."
05:08 PM
FTSE 100 bounces back after Friday's sell-off
The FTSE 100 bounced back from its worst session in more than a year as investors reassess the potential impact of the omicron Covid-19 variant.
London's leading index closed 1pc higher after dropping 3.6pc on Friday.
Telecoms giant BT topped the risers with a 6.1pc jump after India's Reliance Industries denied a media report it was mulling over a bid.
Oil majors BP and Royal Dutch Shell were also among the winners today helped by a rebound in oil prices.
04:36 PM
Pre-Christmas strikes at Morrisons after pay rise confirmed
Good afternoon, this is Giulia Bottaro taking over from my colleague James Warrington until the end of the day.
Pre-Christmas strikes at Morrisons have been called off after over 1,100 warehouse workers accepted an improved pay offer.
The workers are all members of Unite, the UK’s largest union, and are based at the grocer’s distribution centres at Northwich in Cheshire and Wakefield in Yorkshire.
After protesting a pay freeze, they were offered 2-3pc rise, so Unite stepped in and negotiated a 5pc increase.
Unite general secretary Sharon Graham said: “Unite’s members have worked throughout the pandemic to ensure Morrisons shelves remained fully stocked. They simply were never going to accept a pitiful pay deal."
“Unite does exactly what it says on the trade union tin: fight to defend our members’ jobs, pay and conditions. This pay rise at Morrisons, as well as similar victories at other workplaces across the country, shows this approach is paying dividends for Unite members.”
04:02 PM
Twitter names Parag Agrawal as new boss
Twitter has confirmed Jack Dorsey's departure as chief executive and named Parag Agrawal as his successor.
Mr Dorsey, who founded the social media company in 2006, will remain a member of the board until his term expires next year.
He said: "I've decided to leave Twitter because I believe the company is ready to move on from its founders.
"My trust in Parag as Twitter's chief executive is deep. His work over the past 10 years has been transformational. I'm deeply grateful for his skill, heart and soul. It's his time to lead."
Mr Agarwal joined Twitter more than a decade ago and has served as chief technology officer since 2017.
The company also named Bret Taylor as its new chairman, succeeding Patrick Pichette, who will remain on the board.
Deep gratitude for @jack and our entire team, and so much excitement for the future. Here’s the note I sent to the company. Thank you all for your trust and support 💙 https://t.co/eNatG1dqH6pic.twitter.com/liJmTbpYs1
Iceland won't enforce mask rules, says supermarket boss
Iceland managing director Richard Walker - NP_Photos
The boss of supermarket chain Iceland has said his company won't force shoppers to wear masks, despite new Covid rules coming into force tomorrow.
Richard Walker said he wouldn't be asking staff to enforce the restrictions as it was "crucial that we stay focused on the long-term recovery of the high street".
He told the Daily Mail: "We fully support the reintroduction of compulsory face masks in shops, however, we won't be asking our store colleagues to police it.
"Our store teams, alongside all retail workers, have shown heroic efforts in terms of ensuring safety for customers and building back consumer confidence and it's crucial that we stay focused on the long-term recovery of the high street.
"We need to continue to encourage people to shop in stores if they feel comfortable, and I'm hopeful that the latest guidelines won't discourage customers from doing so."
Co-op also said it wouldn't enforce the measures or refuse to serve anyone not wearing a face mask.
03:16 PM
Jack Dorsey to step down as Twitter boss
Jack Dorsey Twitter chief executive - Marco BELLO / AFP
Here's a bit more context on the shock reports that Jack Dorsey is stepping down as Twitter boss, courtesy of my colleague James Titcomb.
The 45-year-old founded Twitter in San Francisco in 2006 and returned as chief executive in 2015 after the company went public. He was fired in 2008 over concerns about his management style and reportedly being distracted by outside hobbies.
He also runs the payments company Square, which is worth almost $100bn and accounts for most of his $12.3bn (£9.2bn) fortune.
Mr Dorsey has come under repeated pressure during his time at Twitter for allegedly failing to deal with its hate speech issues. He was also criticised by Republicans last year after Twitter blocked users from sharing a New York Post story containing claims against Joe Biden’s son Hunter ahead of the presidential election.
Mr Dorsey survived an effort from activist investors Elliott Management and Silver Lake Partners to oust him last year.
He had come under fire for outlining plans to temporarily move to Africa while continuing to run both companies, but cut a deal with the investors that allowed him to remain in charge.
His dual roles running both Twitter and Square have led to questions over his leadership. Before appointing him in 2015, Twitter’s board said it would not hire somebody who could not commit full time, before changing tack and appointing Mr Dorsey.
On Sunday, he tweeted: “I love Twitter.” Mr Dorsey has expressed a growing interest in Bitcoin and other cryptocurrencies in recent years.
03:12 PM
Energy producers to blame for price spike, says IEA chief
Energy producers are the key reason for soaring natural gas and power prices in Europe – not the transition to greener energy.
That's according to the head of the International Energy Agency, who pointed the finger at major energy suppliers, without naming any names.
Fatih Birol said the surge in prices was the result of factors including demand growth, supply outages and extreme-weather events, “but also – I want to underline this – some of the deliberate policies of energy producers”.
Russia has come under fire for failing to do enough to ease the crisis – an accusation it denies. A row is brewing over the controversial Nord Stream 2 pipeline, while some EU politicians have called for an investigation into state-owned Russian energy giant Gazprom.
Some countries have warned that the transition to cleaner sources of energy could leave the continent more exposed to price volatility, but Mr Birol dismissed these arguments as "wrong".
02:59 PM
Hertz rises on $2bn share buyback plan
Hertz share buyback - REUTERS/Brendan McDermid
Hertz shares have pushed higher this afternoon after the car rental company said it would buy back $2bn (£1.5bn) worth of stock.
The buyback will come into effect immediately and will initially include the remaining $200m that was authorised for repurchase at the time of Hertz’s Nasdaq listing earlier this month. Shares rose 6.9pc.
It marks the company's latest efforts to shore up its finances just months after emerging from bankruptcy protection.
Last week it announced plans to buy back almost $1.9bn in preferred stock as part of a wider move to replace more expensive bankruptcy-era financing with cheaper debt.
02:49 PM
AJ Bell woos young investors with no-commission trading app
The online broker AJ Bell is attempting to entice a new generation of traders into the stock market with a commission-free service similar to Robinhood, the American smartphone app that played a major role in the "meme stocks" frenzy.
Simon Foy has more:
The move comes after a wave of young investors flocked to share trading during the pandemic on cut-price trading apps such as Robinhood.
The surge culminated in the GameStop saga in January that pushed shares in the struggling US video games retailer to almost $500, up from just $4 the previous year.
AJ Bell said its new “Dodl” app will allow investors to buy a range of stocks and funds on their phones as it takes on low-cost investment platforms such as Freetrade and seeks to attract first-time traders.
Dodl will also offer “themed investments”, including funds focusing on areas such as technology, robotics, healthcare and ethical investing, the FTSE 250 company said.
US stocks have pushed higher at the opening bell as they rebound from the global sell-off that rattled markets at the end of last week.
The S&P 500 climbed more than 1pc, while the Dow Jones rose 0.9pc. The tech-heavy Nasdaq has gained 1.3pc.
After jumping 11pc in pre-market trading, Twitter pushed 10pc higher at the open. It follows a report that founder Jack Dorsey is stepping down as chief executive.
02:30 PM
Twitter surges on report Jack Dorsey to step down
Twitter Jack Dorsey - REUTERS/Anushree Fadnavis/File Photo
Twitter shares have jumped following a report that founder and chief executive Jack Dorsey will step down from his executive role.
CNBC reports that Mr Dorsey, who founded the social media site in 2006, is expected to step inside.
Shares in Twitter surged 11pc shortly before markets opened.
02:20 PM
Erdogan vows 'no compromise' over interest rates
Turkish President Tayyip Erdogan - REUTERS/Umit Bektas/File Photo
Turkish President Recep Tayyip Erdogan has vowed "no compromise" on low interest rates despite surging inflation and a major currency crisis.
The Turkish lira collapsed last week and has continued to lose value against the dollar after a string of rate cuts by the central bank, which has come under pressure from the President.
Erdogan has pushed for rate cuts to boost activity, but the recent economic crisis has sparked pleas from economists for a change of course.
He railed against the "interest rate lobby" which seeks to push Turkey to adopt higher rates, insisting inflation would fall before elections in 2023.
He told local media: "I have never advocated, do not advocate and will never advocate for increasing interest rates.
"Even if others who think differently appear, Tayyip Erdogan has the same position. I will absolutely not compromise on this issue."
02:01 PM
Biden to meet with business chiefs amid supply chain troubles
US President Joe Biden will meet with chief executives of a string of companies on Monday as supply chain troubles and the omicron variant threaten to overshadow the festive shopping season.
Biden, who is grappling with a 31-year high in US inflation, has taken measures to try and ease supply bottlenecks and mulled investigations into high shipping fees and possible illegal behaviour in oil and gas markets.
He now plans to host an in-person meeting on Monday with the bosses of firms including Best Buy, Food Lion, Samsung North America, Qurate Retail Group, Todos Supermarket, Etsy, Mattel and Kroger, according to Axios.
Virtual participants in the meeting will include Walmart chief executive Doug McMillon and CVS Health boss Karen Lynch.
01:25 PM
German inflation surges to three-decade high
German inflation soared to a 29-year high in November as supply chain troubles and surging energy costs drove up prices in Europe's largest economy.
The EU-harmonised consumer price index rose surged to 6pc on the same month last year, while the national gauge hit 5.2pc – its highest level since 1992.
The Bundesbank had warned inflation could climb to just under 6pc this month, with around 1.5 percentage points of that linked to a temporary cut in VAT and low prices of travel-related services in 2020.
Despite the surging prices, Olaf Scholz's new government is planning to lift the country's minimum wage to €12 (£10) towards the end of next year. Public sector workers have also just won a 2.8pc pay rise and a tax-free one-off payment of nearly €1,300.
The figures will pile pressure on the ECB to act, despite its insistence that inflation in the bloc is temporary.
Earlier today, Spain reported inflation of 5.6pc, driven by high food costs. Price in Belgium jumped 5.6pc.
Nissan puts Sunderland at centre of $18bn electric drive
Here's a bit more on Nissan from my colleague Howard Mustoe after the Japanese car giant said Sunderland will be at the heart of its shift to electric vehicles.
Nissan plans to use its Sunderland factory as a blueprint for an $18bn (£13bn) push aimed at dominating the global electric car market.
The Japanese company plans 15 new electric models by 2030 with EVs accounting for half its global output by then.
Ashwani Gupta, Nissan chief operating officer, said Sunderland would be at the forefront of its plans. “Europe will take the lead on electrification around the world for Nissan. In Europe, Sunderland is the one which will take the lead towards electrification,” he said.
In the summer Nissan signed a £1bn deal to build Britain's first electric car battery gigafactory, partnering with Chinese battery maker Envision. A new factory will produce enough batteries for 100,000 cars when it starts operating in three years’ time as part of a plan that will create 1,650 jobs.
Oil may have taken a plunge at the end of last week, but that hasn't dented JP Morgan's expectations that prices will continue to rise.
The Wall Street bank reckons Brent prices will reach $125 a barrel in 2022 and $150 a barrel the year after due to a lack of spare capacity, mainly among Opec members.
Analysts forecast spare capacity of 2m barrels per day (bpd) next year – below consensus estimates. They also think Opec will halt its current output increase of 400,000 bpd.
They wrote: “While we believe a 3-month pause to 400,000 bpd monthly increments is needed during the first half of 2022 to balance the market (and potentially a cut pending impact of new Covid variants), the group will struggle to deliver monthly growth of more than 250,000 bpd once reinstated”
It comes ahead of a key Opec meeting this week, where the production cartel will be weighing up the threat of the new omicron variant on global demand as well as recent releases of oil reserves by the US and other countries.
12:25 PM
Guy Hands plots new housebuilding empire with £300m takeover
Guy Hands Terra Firma Hopkins Homes - Luke MacGregor/Bloomberg
Private equity tycoon Guy Hands is said to be planning a £300m takeover of East Anglia's biggest private housebuilder.
Sky News reports that Mr Hands' buyout firm Terra Firma has tabled a bid for Hopkins Homes, which was set up by James Hopkins in 1992.
It's reported he would fund the deal using his personal fortune and, if successful, would merger Hopkins Homes with Tilia Homes – the housebuilder he acquired from Kier Group – in an effort to set up a major new player in the market.
12:15 PM
Wall Street set to rebound from omicron rout
Wall Street is poised to rebound from its omicron-induced crash on Friday, following on from gains for the FTSE and an oil price rally.
Futures tracking the S&P 500 and Dow Jones are up 0.9pc and 0.7pc respectively, while the Nasdaq has risen 1pc.
The three major indices slumped between 2pc and 3.5pc at the end of last week as news of the new strain triggered a global sell-off.
The White House said President Joe Biden is due to update the public on the variant and the US response later in the day.
Much like on the FTSE, it's badly-hit travel stocks that are leading the rebound in shares, while energy companies also gained.
12:10 PM
EasyJet extends free rebooking policy
EasyJet travel Covid - Chris Ratcliffe/Bloomberg
EasyJet has extended its policy on free flight rebookings into next year as fresh travel restrictions pose a new threat to the beleaguered airline industry.
The budget carrier said its 'freedom to change' policy will continue until 31 March 2022, meaning customers can change their flights without a fee.
The company's travel restriction protection will continue until 31 December 2022, meaning passengers can receive a refund on their flights if a trip is affected by a lockdown travel ban or hotel quarantine.
It follows new travel bans and a tightening of testing rules in the wake of the new omicron variant that threatens to derail the travel sector's already fragile recovery.
11:59 AM
BioNTech aims for new Covid vaccine within 100 days
BioNTech has begun work on a new Covid vaccine that could tackle the omicron variant and is hoping to have it ready within 100 days.
The German company, which produces a jab with Pfizer, said it started development last Thursday as news of the new variant spread. The firms had already put plans in place to ensure a new version of their vaccine could ship within 100 days if necessary.
Shares in BioNTech, which jumped 14pc during Friday's sell-off, rose a further 4.9pc in pre-market trading. Pfizer was up 1.2pc.
It comes after rival Moderna said its updated jab could be ready early next year, sending its shares up 10pc.
11:48 AM
Santander poaches Yorkshire Building Society boss as new UK chief
Santander has poached the head of the Yorkshire Building Society to become its new UK boss.
Mike Regnier, who has previously served at Lloyds, TSB, Halifax and Asda, will join as chief executive of the Spanish bank.
Santander chairman William Vereker said: "I am delighted to be able to appoint someone of Mike's calibre as our new CEO.
"He brings a powerful combination of experience, knowledge and energy, twinned with a positive vision for the future of the bank."
Mr Regnier will be replaced at Yorkshire Building Society by Stephen White, currently its chief operating officer.
11:39 AM
Nissan backs UK as it unveils £13bn electric car push
Nissan electric vehicle £13bn Sunderland - Nissan
Nissan will invest 2 trillion yen (£13bn) over the next five years to accelerate its shift to electric vehicles, including plans to set up a major new hub in Sunderland.
The Japanese car maker said it will introduce 23 new models by 2030, including 15 new electric vehicles, and aim for half of its fleet to be electrified by then.
Nissan, which released the first mass-produced EV – the Leaf – in 2010, has been stepping up its EV investment in recent years as it looks to capitalise on a growing market.
The overall investment includes the £1bn previously announced to convert the company's plant in Sunderland into a major production hub for electric cars.
11:31 AM
UK vaccine factory put up for sale
A flagship vaccine manufacturing centre at the heart of the Government's efforts to prepare for future pandemic has reportedly been put up for sale.
The Financial Times reports that several companies have submitted bids for the Vaccine Manufacturing Innovation Centre at Harwell near Oxford, which has received more than £200m of public funding.
The Government announced the creation of the VCMIC in 2018 to develop and make vaccines in preparing for future virus outbreaks.
It was originally scheduled for completion in 2023, but Boris Johnson brought this forward to spring 2022 following the outbreak of Covid.
According to the report, the need for a state-backed vaccine manufacturing site has declined as pharmaceutical firms stepped in to meet demand for Covid jabs.
11:12 AM
Amigo Loans crashes as it warns of collapse
It's been a grim morning for Amigo Loans, which has lost almost a quarter of its value after warning it faces collapse unless it resolves a dispute over customer complaints.
The peer-to-peer lender said the sanctioning of a new scheme to appease regulators was becoming "increasingly urgent", adding it expected the court process to take at least four months.
It said: "Without an approved scheme, Amigo expects to have to file for administration or other insolvency process."
Shares plunged more than 24pc following the update.
It came as Amigo reported a 39pc drop in revenue to £56.5m as it was unable to perform any new lending, while customer numbers dropped 42pc.
However, the firm swung to a pre-tax profit of £2.1m, driven by a sharp fall in complaints expenses compared to last year.
10:59 AM
Sainsbury's teams up with Amazon for checkout-free store
Sainsbury's checkout-free store Amazon - Sainsbury's
Sainsbury's has teamed up with Amazon to open its first ever checkout-free store.
The supermarket giant opened the site in Holborn in central London on Monday, just yards away from similar offerings from Amazon and Tesco.
It comes amid growing demand for shops that allow customers to pick up items and leave without having to use a till.
Sainsbury's is using Amazon's Just Walk Out technology, which is currently used at eight Amazon Fresh stores across the capital.
The Sainsbury's store will see customers use its SmartShop app when entering the store, before picking up items and leaving as cameras are used to recognise which products are purchased before charging customers to their credit or debit card linked to the account.
10:51 AM
Kremlin hits back at US over Nord Stream 2 pressure
The Kremlin has warned the US not to put pressure on Germany or anyone else over approval for its controversial Nord Stream 2 pipeline.
The newly completed pipeline is awaiting clearance from a Germany regular before Russia can start exporting gas through it.
The US and some European countries oppose the new link, which bypasses Ukraine and is designed to export gas directly to Germany, over concerns it will increase the region's reliance on Russian gas.
But the Kremlin and some other European nations have argued the pipeline is crucial to securing energy supplies amid a crisis across the continent.
10:35 AM
Eurozone confidence tumbles amid Covid resurgence
Austria Vienna lockdown Covid omicron - Thomas Kronsteiner/Getty Images
Economic confidence in the eurozone slipped in November as consumers grappled with a spike in inflation and a resurgence in Covid cases.
A European Commission sentiment index fell to 117.5 in November from 118.6 the previous month, with consumer confidence dropping to its lowest level in seven months.
Confidence in the industrial sector was broadly stable, while it improved for services.
The bloc has been battling a surge in inflation, though the ECB has so far said it considers rising prices to be transitory.
The region is also facing a fresh onset of Covid cases, leading to full lockdown in Austria and Slovakia and tougher restrictions in other countries including Germany. The emergence of the omicron variant is now posing an additional threat to the recovery.
Bank of England figures out this morning showed consumer spending rose at the fastest pace since the aftermath of the first lockdown.
Consumer credit rose to £0.7bn in October from £0.3bn the previous month, indicating further signs of recovery and a willingness to splash out.
But Bethany Beckett at Capital Economics says the new omicron variant could derail this progress.
The £0.7bn rise in consumer credit in October (consensus +£0.4bn) adds to evidence that households’ willingness to borrow picked up a bit at the start of the fourth quarter.
While that could offer some reassurance to retailers as they enter the crucial run-up to Christmas, it seems a bit academic now given the growing risk that the omicron variant stops the recovery in spending in its tracks.
That adds to the downside risks for our GDP forecast, which already pointed to fairly weak growth in the coming months.
Households added to their savings in October at the slowest rate since the pandemic began. This looks more like a sign of h'holds maintaining spending, rather than increasing it, as the sharp drop in saving coincides with the jump in CPI inflation and the end of fiscal support pic.twitter.com/lZT1BgPCHW
BT is among the biggest risers this morning following a report Indian group Reliance Industries is mulling a potential takeover approach.
Shares jumped as much as 9.5pc, but they've now fallen back after Reliance dismissed the claims as "completely speculative and baseless".
The telecoms giant is now trading up 4.5pc.
10:06 AM
Mortgage approvals dip after stamp duty rush
Mortgage approvals slipped in October as activity in the housing market eased following a rush triggered by the stamp duty holiday.
Approvals dipped to 67,199 from 71,851 the previous month, according to figures from the Bank of England, while net mortgage lending dropped from £9.3bn to £1.6bn.
The approval figures, which are at their lowest level since June 2020, mark a cooling off of the market after buyers rushed to complete purchases before the stamp duty holiday came to an end.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said:
Net mortgage borrowing dipped in October, which is not surprising following the flurry of activity in September as buyers brought forward moves in an effort to take advantage of the stamp duty holiday.
With house purchase numbers falling, although still close to the 12-month average, the market is settling down a little after what has been a frenzied few months.
09:59 AM
Moderna surges on 2022 omicron jab hopes
Moderna Covid vaccine omicron - REUTERS/Arnd Wiegmann/File Photo
Shares in Moderna surged this morning after it said a new vaccine to tackle the omicron strain of Covid could be ready early next year.
The pharmaceutical company, which rose by more than a fifth during Friday’s sell-off, pushed up a further 11pc in pre-market trading following the upbeat announcement.
Chief medical officer Paul Burton said Moderna mobilised hundreds of workers on Thanksgiving Day last Thursday in order to start work on omicron.
09:32 AM
Gazprom posts record profit amid gas price surge
Gazprom oil prices energy
Meanwhile, the surge in natural gas prices that has roiled energy markets across Europe has proved something of a cash cow for Gazprom.
The Russian state energy giant posted a record quarterly net profit of 581.8bn roubles (£5.8bn) and said it expected even higher earnings in the final three months of the year.
Gazprom has come under fire from politicians and experts for failing to supply enough gas to help alleviate the crisis. The Kremlin-controlled company has said it meets all its contractual obligations.
The record profit comes after the company posted a loss of 251bn roubles in third quarter of 2020.
Gazprom deputy chief executive Famil Sadygov said: "Obviously, the price of our supplies to Europe will be significantly higher in the fourth quarter, which will have a positive impact on the full-year results."
09:25 AM
Energy prices jump as cold snap hits
Energy prices surged across Europe this morning as the continent braces for cold weather over the next two weeks that will lift demand for heating.
Benchmark Dutch natural gas jumped as much as 9.7pc, while the UK equivalent rose 7.8pc. German month-ahead power surged 11pc and carbon futures hit a record high.
Temperatures are forecast to drop below average levels over the next fortnight, adding to pressure on the market, which is already suffering from lower supplies.
Stefan Ulrich, a gas analyst at BloombergNEF said: “Given how tight the gas balance looks presently, any significant period of cold below the seasonal average would likely push forecasts for end-of-season gas inventories toward critical levels, driving prices higher.
“If the winter turned out to be particular cold, we could not rule out further extraordinary measures to calm the gas and by extension power markets.”
09:18 AM
Watchdog set to block Facebook's Giphy takeover
Facebook Giphy CMA - AP Photo/Richard Drew, File
The competition is expected to block Facebook's $400m (£290m) takeover of Giphy as it steps up its crackdown on Big Tech.
The Competition and Markets Authority (CMA) will step in to unwind the deal – the first time it has blocked a major Silicon Valley merger – the Financial Times reports.
In August the CMA provisionally ruled that Facebook should sell Giphy due to concerns it could enable the social media giant to demand more data from their rivals in exchange for access to gifs, or even cut off their access altogether.
Facebook, now known as Meta, has fought back against the verdict, accusing the watchdog of “engaging in extraterritorial over-reach”.
09:11 AM
Molten Ventures portfolio jumps as tech bets pay off
Venture capital firm Molten Ventures has seen its portfolio value surge by more than a quarter after it bets on major tech players paid off.
The FTSE 250 group, formerly known as Draper Esprit, said its gross portfolio value jumped 27pc to £1.4bn in the six months to the end of September.
Molten Ventures has cashed in on the soaring value of market debuts for companies such as Trustpilot and Revolut as Britain's tech sector continue to boom.
Martin Davis, chief executive of Molten Ventures, said:
The shift to online, accelerated by the pandemic, has remained a permanent fixture of our daily lives largely due to advances in the technology infrastructure, which was available during previous investment cycles.
While we cannot be certain about what the future holds in the technology landscape, I am confident in venture capital as an asset class and in our strategy, enhanced investment platform, and diversified, resilient portfolio which spans climate tech to health tech and fintech.
09:03 AM
Sterling holds above 11-month lows
Sterling is holding above 11-month lows as calm returned to markets after omicron jitters sparked a sell-off of the currency on Friday.
The pound is steady against the dollar at $1.3338 after plunging to its lowest level since December 2020 at the end of last week. Against the euro, it rose 0.3pc to 84.55p.
Traders started buying the dip this morning, while panic receded as markets began to take a more balanced view of the new variant.
Still, sentiment towards the pound remained cautious, with investors worried tougher Covid measures could reduce the likelihood of a Bank of England interest rate rise.
08:47 AM
Hammerson eyes £140m sale of Glasgow shopping centre
Real estate group Hammerson is in talks over a £140m sale of the Silverburn shopping centre near Glasgow.
The FTSE 250 firm this morning confirmed discussions over a sale of the mall, which it jointly owns with the Canada Pension Plan Investment Board. Shares gained 4.8pc.
Hammerson, which owns sites including the Bullring in Birmingham, originally bought Silverburn for £300m in 2009, but it's been weighed down by declining values for retail properties in recent years.
In August it said it would focus on selling non-core parts of its real estate portfolio. It has already sold its remaining retail parks operation, which included sites in Middlesbrough and Falkirk, to Canadian investor Brookfield for £330m as part of its disposal programme.
08:42 AM
Travel stocks rebound but BA lags
Travel stocks British Airways IAG - Chris Ratcliffe/Bloomberg
Overall, it's a positive start to the week for travel stocks, which were some of the hardest hit in last week's rout.
Ryanair jumped as much as 3.5pc at the open before easing back slightly, while easyJet has added 1pc and Wizz Air jumped 3pc. Other airlines across Europe also benefited, with Lufthansa up 1.5pc.
British Airways owner IAG is the most sluggish – dipping 0.4pc into the red before reversing losses to tick up 0.2pc.
Other travel-related stocks such as cruise operator Carnival and travel hub-focused retailer WH Smith also helped drive up the FTSE 250.
The sector suffered a major setback on Friday as fears mounted over the omicron Covid variant, with new travel restrictions rolled out on South Africa. Many countries have begun tightening rules, with Japan to close its borders to foreign travellers from tomorrow.
Still, analysts say the sell-off was overblown. Goldman Sachs described the scale of the fall as “excessive”, while Citi said the risks for the stocks were now priced in.
08:33 AM
FTSE risers and fallers
The FTSE 100 has gained ground this morning following a rather grim sell-off last week.
The blue-chip index rose as much as 1.2pc, though it's now pared gains to trade up 0.7pc. Traders are looking to buy the dip after Friday's rout, but it's only a modest clawing back of the 3.6pc plunge.
BT is the biggest winner, surging 9pc on reports India's Reliance Industries is mulling a takeover bid. BP and Shell are also up 2.4pc and 1.8pc respectively as oil prices rallied.
The domestically-focused FTSE 250 has staged a more impressive rebound, rising 1.4pc. Travel stocks are leading the way, with WH Smith jumped 5.3pc to the top of the index.
08:23 AM
Irn-Bru maker to beat profit forecasts
Nicola Sturgeon and Alexandria Ocasio-Cortez with an Irn-Bru at COP26 - Nicola Sturgeon/Twitter
Irn-Bru maker AG Barr has issued a surprise upgrade to its profit forecasts after recording strong sales in recent months.
The Scottish company, which also makes Rubicon, said sales since September had grown ahead of expectations thanks to strong trade in "on-the-go" and hospitality markets.
The drinks firm has benefitted from the return to the office, as well as the recovery of bars and restaurants in recent months.
AG Barr said it remained confident on its outlook despite supply chain challenges and the ongoing risk from the pandemic.
It forecast revenues of around £264m for the year, with a forecast pre-tax profit of around £41m – the second time it has upgraded its profit guidance in the last four months. Shares gained 4pc following the update.
08:12 AM
BT jumps on Reliance takeover report
Away from omicron chatter, BT is one of the biggest risers this morning following reports Indian conglomerate Reliance Industries is weighing up a potential takeover bid.
Reliance, which is owned by billionaire Mukesh Ambani, could make an unsolicited offer to buy into the company or even try to take a controlling stake, according to a report by the Economic Times.
Separately, the Mail on Sunday reported private equity firms and investment funds are assessing BT's Openreach division, which is responsible for its broadband rollout.
It comes amid pressure on the company from Altice – the French telecoms group run by billionaire Patrick Drahi – which took a significant stake in June.
Shares in BT jumped as much as 9.5pc in early trading.
08:01 AM
FTSE 100 opens higher
The FTSE 100 has pushed higher at the open, as it looks to claw back some of its losses after Friday's market crash.
The blue-chip index jumped 1.2pc to 7,127 points after closing down more than 3pc last week.
07:55 AM
BP plots green hydrogen base in Teesside
BP is plotting a green hydrogen facility in the north east that could start producing the gas by 2025 as part of its major push towards cleaner energy.
The HyGreen Teesside proposal follows one made earlier this year to develop a blue hydrogen facility in the same location. That would produce 1 gigawatt of hydrogen by 2030 and capture 2m tonnes of carbon dioxide a year.
It forms part of BP's plans to scale back its fossil fuel business as the UK targets net zero emissions by 2050. In addition to solar and wind energy, the oil giant wants to capture a 10pc share of “core” hydrogen markets over the next decade.
BP didn't disclose the cost of its proposed new facility, which relies on receiving some government funding. A final decision is expected in 2023.
07:46 AM
All eyes on travel stocks as Japan closes borders
Japan borders travel omicron Covid - Photo by CHARLY TRIBALLEAU/AFP via Getty Images
There'll be a close eye on travel and leisure stocks when markets open this morning as the new omicron variant sparks concerns about fresh restrictions.
The sector was one of the hardest hit on Friday, with British Airways owner IAG plunging as much as 20pc as a host of countries blocked travel to and from South Africa.
This morning Japan announced it will close its borders to new foreign arrivals from Tuesday in a bid to prevent the spread of the virus. However, the new strain has already been located in 13 countries.
Despite this, futures for stocks including IAG, Lufthansa and Royal Mail are pointing higher, suggesting companies may claw back some of last week's losses.
07:32 AM
Traders weigh up demand amid oil row
Friday's sharp sell-off in oil was driven primarily about how a resurgence in the virus could hit demand, pulling back prices from the lofty heights seen in October.
Goldman Sachs described the extent of the rout as “excessive”, while commodities analyst Daniel Hynes said it “appeared a complete overreaction”.
He told Bloomberg: “While it’s still too early to estimate what this could mean for oil demand, we think the market will find some support as opportunistic buying emerges.”
But it also comes against a major row over oil production. Opec will meet this week whether to adjust its current output from its current level of an additional 400,000 barrels per day.
Last week the US and a host of other nations – including the UK – released millions of barrels from strategic reserves in a bid to tame prices. This came after Opec resisted repeated calls to step up production.
This increase in supply, combined with last week's drop in prices, means the production group could now choose to suspend output – or event cut it.
07:25 AM
All eyes on markets as oil bounces back
Good morning.
Investors will have spent the weekend watching for news of the new Covid super-variant, which ripped through the markets on Friday.
Oil prices have staged a strong rebound after collapsing due to fears the new strain will lower demand over the winter. But there'll be a focus on airline and leisure stocks, which took the biggest beating across Europe last week after discovery of the new strain sparked renewed restrictions and travel bans.
Over the weekend the first UK cases of the omicron Covid variant were confirmed, dashing hopes of Christmas holidays overseas for many as popular destination countries imposed tougher border restrictions.
Bank of England watchers will also be scanning the utterances of rate-setters this week as traders rapidly pull back their bets on an interest rate rise in December. If the variant is dangerous enough for rate-setters to soften their tone, then a move is almost certainly on ice until at least February.
Asian markets fell again Monday but oil rebounded strongly as investors try to assess the threat of the new Omicron Covid strain on the global economic recovery. Tokyo and Hong Kong had looked positive in the morning but remained in the red, while Shanghai, Sydney, Seoul, Singapore, Taipei, Wellington, Manila and Jakarta also retreated.
Coming up today
Corporate: Draper Esprit, Amigo Holdings, Character Group (Interim results)
Economics: Consumer confidence, industrial confidence, business climate (EU); pending home sales (US)
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