Yahoo Finance What to watch: Shell up on COVID vaccine optimism, TUI loss in billions, and pound dips on Brexit impasse
Here are the top business, market, and economic stories you should be watching today in the UK, Europe, and around the world.
Shell up on COVID-19 vaccine optimism
Royal Dutch Shell (RDSB.L) is among the gainers on the FTSE (^FTSE), up 2.2% on Thursday as oil edges higher amid COVID-19 vaccine optimism.
“Oil prices have started their upward move once again on the back of vaccine hope, said Naeem Aslam, chief market analyst at AvaTrade. “The fact is that process has started to roll out the coronavirus vaccine in the UK has strengthened the hope for oil demand.”
The company and its other oil major peers have been hard hit by the grossly reduced demand as the pandemic led to various travel barriers around the world, making potential customers weary about driving. BP (BP) is also heading higher in the pre-market, up 0.3%.
READ MORE: UK economy almost ground to a standstill before second lockdowns hit
Billions in losses for TUI
Tui (TUI.L), the travel group, has reported a full year €3.1bn (£2.8bn, $3.8bn) loss after successive travel restrictions caused by the COVID-19 pandemic forced it to cut its holiday programmes.
Customer volumes were down 62% during the year ended 30 September.
The tour operator said on Thursday in its latest company filing that it has set a target of permanently saving more than €300m in group-wide costs as it faces the prospect of near collapse, with the first benefits of the efforts to be delivered from this year and full benefits to be achieved by 2023.
Revenue fell 58% to €7.9bn, down from a profit of €691m in 2019.
Pound dips on Brexit impasse
Sterling lost ground against the euro and the dollar after a summit between UK prime minister Boris Johnson and European Commission president Ursula von der Leyen failed to deliver progress in Brexit trade talks.
Johnson travelled to Brussels on Wednesday for a three-hour working dinner with his European counterpart. Talks ended with little progress. A Downing Street source said late on Wednesday night that “very large gaps remain” after “frank” discussions.
Sterling was down 0.6% against the euro to €1.0995 (GBPEUR=X) in early trade in London and down 0.4% against the dollar to $1.3297 (GBPUSD=X).
WATCH: ECB keeps Eurozone interest rates intact
Modest gains for European markets as Brexit and US stimulus are stalled
There were modest gains on Thursday for European markets as Brexit and US stimulus talks are stalled.
British and EU leaders will give themselves until the end of the weekend to agree on a new trade pact, with around $1tn (£0.74tn) in annual trade at risk of tariffs if they can’t reach a deal by 31 December, the deadline for transition arrangements to be finalised.
The FTSE (^FTSE) was up 0.4% at the market open in London. The DAX (^GDAXI) was also higher 0.1% in Frankfurt, while the CAC 40 (^FCHI) in Paris gained 0.3%.
Markets are also closely watching the European Central Bank’s December policy decision, which is almost certain to give Europe’s faltering economy another boost.
US futures was rather muted, with the S&P (ES=F) down 0.1%. The Dow Jones (YM=F) was flat and the Nasdaq (NQ=F) slid 0.3%.
Japan’s Nikkei (^N225) was lower 0.2%, the Hong Kong Hang Seng (^HSI) slid down 0.4%, and China’s Shanghai Composite (000001.SS) was flat. South Korea’s KOSPI (^KS11) fell 0.3%.
WATCH: Why is fishing so important in Brexit talks?
