(Alliance News) - The following is a summary of top news stories Monday.
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COMPANIES
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AstraZeneca said the US phase III trial of its AZD1222 vaccine - co-invented with the University of Oxford - demonstrated statistically significant efficacy of 79% at preventing symptomatic Covid-19 and 100% efficacy at preventing severe disease and hospitalisation. AstraZeneca said interim safety and efficacy analysis was based on 32,449 participants accruing 141 symptomatic cases of Covid-19. Vaccine efficacy was consistent across ethnicity and age. Notably, in participants aged 65 years and over, vaccine efficacy was 80%, it added. AstraZeneca said it will continue to analyse the data and prepare for the primary analysis to be submitted to the US Food & Drug Administration for Emergency Use Authorization in the coming weeks.
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DIY retailer Kingfisher said it was making good progress in its 'Powered by Kingfisher' strategic plan, unveiled in June. For the financial year that ended January 31, revenue was up 7.2% at GBP12.34 billion from GBP11.51 billion a year before, while pretax profit multiplied to GBP756 million from GBP103 million. Kingfisher declared a total dividend of 8.25 pence, having skipped payouts in financial 2020 due to the Covid-19 pandemic. Looking ahead, Kingfisher said the new financial year has started positively, with first quarter like-for-like sales to March 18 up 24%, reflecting strong demand in the UK and France. "Given the profile of trading during FY20/21, we expect distinct performances in the two halves of the coming year. In H1 21/22 we expect low double-digit group LFL sales growth, supported by the delivery of our strategic objectives," the company noted.
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Deliveroo said it will be worth just under GBP9 billion on admission to the London Main Market, as the company edges closer to its float and continues to see increased demand for its takeaway food delivery service. Deliveroo will price its initial public offering between GBP3.90 and GBP4.60 per share. This would imply a market capitalisation between GBP7.6 billion and GBP8.8 billion. The IPO will consist of 384.6 million shares, though this does not include any over-allotment stock. At the low end of the price range, this would value the total offer at GBP1.5 billion. New shares will be issued, though some existing shareholders will also sell stock. Deliveroo said it expects to raise roughly GBP1 billion for the company from the new shares, suggesting GBP500 million in existing shares will be sold. Among existing investors selling shares is Founder & Chief Executive Will Shu, Sky News reported on Monday. Shu will sell some of his 6.2% stake in the company he founded. Sky News said the sale could be worth GBP500 million.
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French energy and water firm Veolia Environnement's ongoing takeover battle with Suez took another turn over the weekend, with the company hitting out at Suez Chair Philippe Varin after he asked for a higher bid. In early February, Veolia offered EUR7.9 billion for the 70.1% of rival Suez it doesn't already own, taking an aggressive stance in its long-running takeover bid. On Sunday, Veolia replied to Varin, saying "is not interested in dismantling" Suez. It continued: "Today, the management of Suez has tried in vain to create uncertainty where none exists: Veolia will not sell or exchange its 29.9% stake in the capital of Suez." Suez on Sunday said it wants a "negotiated solution" with Veolia. Suez's Varin said: "The Suez board of directors is ready to enter into negotiations as of today to break the current deadlock, and hopes that Veolia will respond favourably to this constructive proposal." Veolia said it will not enter discussions with Suez until it has met several conditions, including dissolving its Dutch subsidiary, which Veolia said is "seriously undermining the corporate interests and value" of Suez. Veolia also wants Suez to suspend its "rushed" sales of strategic international assets.
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Commonwealth Bank of Australia and Australia & New Zealand Banking Group said they have agreed to settle a class action brought against them in the US during 2016. The class action started in 2016 in the US District Court for the Southern District of New York against CBA, ANZ, plus other banks and two brokers in relation to the trading of products in connection with the bank bill swap reference rate. Both CBA and ANZ issued a statement saying: "The settlement is without admission of liability and remains subject to negotiation and execution of complete settlement terms as well as court approval. The terms of the settlement remain confidential. The financial impact of the settlement is not material."
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Crown Resorts said it received a takeover offer from US private equity firm Blackstone Group, and it is considering the proposal. The Australian gambling operator said the "unsolicited, non-binding and indicative proposal" from a company on behalf of funds managed and advised by Blackstone and its affiliates was for an indicative price of AUD11.85 per share in cash. Crown shares closed up 21% in Sydney on Monday at AUD11.97. Blackstone already has a 9.99% stake in Crown Resorts, having bought the shares from Melco Resorts & Entertainment Ltd for AUD8.15 per share in April 2020, Crown noted. "The Crown board has not yet formed a view on the merits of the proposal," the company said. "It will now commence a process to assess the proposal, having regard to the value and terms of the proposal and other considerations." It noted the Blackstone has made its proposal subject to unanimous agreement by the Crown board. Blackstone also would need regulatory approval in Australia to run casinos.
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Saudi Arabian Oil on Sunday posted a 44% slump in 2020 net profit due to lower crude prices, as the coronavirus pandemic weighed heavily on global demand. The company, known as Saudi Aramco, has revealed consecutive falls in profits since it began disclosing earnings in 2019. That has piled pressure on Saudi government finances as Riyadh pursues multi-billion dollar projects to diversify the oil-reliant economy. "Aramco achieved a net income of USD49 billion in 2020," the company said in a statement, down from USD88.2 billion in 2019. Chief Executive Amin Nasser described it as "one of the most challenging years in recent history". Aramco said "revenues were impacted by lower crude oil prices and volumes sold, and weakened refining and chemicals margins."
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The US on Friday condemned the drone strike on a Saudi oil refinery claimed by Yemen's Huthi rebels, calling it an attempt to "disrupt global energy supplies." "We strongly condemn today's drone attacks against Saudi Aramco facilities," State Department deputy spokeswoman Jalina Porter told reporters of the dawn attack, the second major assault this month on Saudi energy installations. "We condemn the Huthis' attempts to disrupt global energy supplies by targeting Saudi infrastructure," Porter added, saying the US is "deeply concerned by the frequency of attacks on Saudi Arabia." and effective".
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MARKETS
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Shares were mostly lower in Asia and Europe at the start of the new week, while Wall Street indices were indicated for a mixed open. AstraZeneca was up 1.7% after positive results from a US trial of its Covid-19 vaccine, but travel stocks were being hit by growing concern about the slow pace of vaccinations in Europe and a return to lockdowns in France and Germany. British Airways parent IAG was down 5.4%. Anglo-German tour operator Tui was off 5.8%.
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CAC 40: down 0.3% at 5,977.86
DAX 30: up 0.2% at 14,643.16
FTSE 100: down 2.22 points at 6,706.49
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DJIA: called down 0.2%
S&P 500: called marginally higher, up 1.75 points
Nasdaq Composite: called up 0.8%
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Hang Seng: closed down 0.4% at 28,885.34
Nikkei 225: closed down 2.1% at 29,174.15
S&P/ASX 200: closed up 0.7% at 6,752.50
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EUR: flat at USD1.1906 (USD1.1901)
GBP: down at USD1.3850 (USD1.3874)
USD: down at JPY108.70 (JPY108.86)
GOLD: down at USD1,732.25 per ounce (USD1,739.97)
OIL (Brent): up at USD64.78 a barrel (USD64.07)
(currency and commodities changes since previous London equities close)
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ECONOMICS AND GENERAL
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The EU has been warned not to engage in "vaccine nationalism" over proposals to block exports of coronavirus jabs to the UK, PA reports. UK Care Minister Helen Whately said European Commission President Ursula von der Leyen should stick to a commitment not to block pharmaceutical companies from meeting the terms of contracts to supply vaccines. Von der Leyen, who is under pressure over the EU's relatively poor vaccine rollout, has ramped up the rhetoric this weekend, saying the EU has the power to "forbid" exports, adding: "That is the message to AstraZeneca." The warning reflects growing frustration on the continent that the EU is not getting the supplies it expected from the British-Swedish manufacturer. UK Prime Minister Boris Johnson is expected to contact his EU counterparts ahead of virtual summit on Thursday where European leaders are due to consider the matter. UK government sources said Johnson spoke to von der Leyen, along with Dutch and Belgian prime ministers Mark Rutte and Alexander De Croo last week.
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Europe could have herd immunity against Covid-19 by July, a EU commissioner has said, as incoming jabs are expected to speed up the continent's sluggish vaccine rollout. The note of optimism comes even as several European countries have started reimposing restrictions as they contend with surging coronavirus infections, and after mixed messaging on the safety of a key jab. "Let's take a symbolic date: by July 14, we have the possibility of achieving immunity across the continent," Thierry Breton, the EU's commissioner for the internal market told French broadcaster TF1. "We're in the home stretch, because we know that to beat this pandemic there's just one solution: vaccination. The vaccines are arriving," he said. More than a third of France's population is now under renewed lockdown, while frustrations over virus curbs spilled into weekend demonstrations in Germany, Amsterdam, Bulgaria and Switzerland.
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China and the US have decided to establish a joint working group on climate change, according to a statement by the Chinese delegation which took part in high-level talks in Anchorage, Alaska. The delegation said that both countries are committed to enhancing communication and cooperation on the issue, state news agency Xinhua reported. Although marred by a string of publicly traded accusations and having failed to produce any breakthroughs in bilateral relations, the first high-level meeting between Beijing and Washington under the Biden administration was "candid, in-depth and constructive," according to Xinhua. Both sides "expressed their willingness to enhance cooperation or coordination in some specific areas," a Xinhua commentary hailing the meeting's outcome said.
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Turkish President Recep Tayyip Erdogan has removed another central bank governor after only a few months in the job, the Anadolu news agency reported early Saturday, citing an overnight decree. According to Anadolu, the new head of the central bank will be Sahap Kavcioglu, a former member of Erdogan's ruling party, the AKP. The decision comes just a few days after the Turkish central bank raised the key interest rate by two points to 19%. Kavcioglu's predecessor at the helm of the central bank, Naci Agbal, had tried to get high inflation under control by raising interest rates.
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The US Federal Reserve on Friday called time on relaxed measures which allowed banks to keep less in reserves. The central bank noted the temporary supplementary leverage ratio changes will not be extended and will end as planned on March 31. The relaxed SLR measures allowed banks to hold less capital reserves, allowing them to inject the extra free cash back into the economy. "The temporary change was made to provide flexibility for depository institutions to provide credit to households and businesses in light of the Covid-19 event," the Fed noted.
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By Tom Waite; thomaslwaite@alliancenews.com
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