Last checked at 
(Alliance News) - The following is a summary of top news stories Wednesday.
----------
COMPANIES
----------
GlaxoSmithKline said it will collaborate with German biopharmaceutical company CureVac NV to develop next generation mRNA vaccines for Covid-19, with the potential to address multiple emerging variants in one vaccine. The UK pharmaceutical company said that under the agreement, both companies will contribute resources and expertise to research, develop, and manufacture a number of novel mRNA vaccine candidates with the aim of offering broader protection against a variety of different SARS-CoV2 variants as well as to enable a quick response to new variants which may emerge in future. Under the terms of the collaboration agreement, Glaxo will have exclusive rights to develop, manufacture, and commercialise the vaccine in all countries with the exception of Germany, Austria and Switzerland. It also will be the marketing authorisation holder for all countries other than Switzerland. Glaxo will make an upfront payment to CureVac of EUR75 million and a further milestone payment of EUR75 million, conditional on the achievement of specific milestones.
----------
The coronavirus vaccine developed by AstraZeneca and the University of Oxford offers protection of 76% up to 12 weeks after a single dose and may reduce transmission by 67%, according to a new study. After the second dose, vaccine efficacy from two standard doses is 82.4% with the three-month interval being used in the UK, researchers from the University of Oxford say. The data from the study, which has not yet been peer reviewed, supports the four to 12-week prime-boost dosing interval that many global regulators have recommended. Analyses of positive coronavirus swabs in the UK population suggest the vaccine may have a substantial effect on transmission of the virus, with a 67% reduction in positive swabs among those vaccinated with the Oxford/AstraZeneca jab.
----------
Vodafone said it returned to organic service revenue growth in its third-quarter, helped by a much stronger showing in Germany, the telecommunication firm's largest market. Total revenue in the quarter ended December 31 fell 4.7% to EUR11.20 billion from EUR11.75 billion a year earlier. The organic decline - which strips out the effects M&A activity and currency movements - was 0.4%. Vodafone generates the bulk of its cash from service revenue, which includes monthly access charges, airtime usage and roaming. In the third quarter ended December, service revenue rose 0.4% on an organic basis. The organic service revenue figure is one that is closely eyed by analysts. On a reported basis however, total service revenue fell 3.9% annually to EUR9.36 billion from EUR9.73 billion.
----------
Ferguson said it is in the process of registering with the US Securities & Exchange Commission to enable trading of its shares in the US. The FTSE 100-listed plumbing and heating products distributor received shareholder approval for US listing back in July. It anticipates its additional listing will become effective in early March and confirmed that it has applied to list its ordinary shares on the New York Stock Exchange. In addition, Ferguson said it will retain its premium listing on the London Stock Exchange and inclusion in the FTSE 100 index.
----------
Glencore reported a mixed production performance for 2020, with a rise in gold, silver and zinc, but a decline in copper, cobalt and coal. The Swiss commodities trader and miner said that for the year, own-sourced copper output was down 8% year-on-year at 1.26 million tonnes from 1.37 million tonnes, as the Mutanda mine in the Democratic Republic of the Congo remained on care and maintenance. Glencore has guided for 2021 copper production to be around 1.22 million tonnes. Cobalt output fell by 41% to 27,400 tonnes, also due to the Mutanda mine being on care and maintenance. Looking ahead, 2021 cobalt production is expected to rise to around 35,000 tonnes, as Katanga cobalt production continues to ramp up.
----------
MARKETS
----------
London shares were higher with sentiment supported by coronavirus vaccine optimism. The pound was down against the dollar after disappointing UK PMI data. US stock market futures were pointed to a higher open ahead of fourth-quarter earnings from online auction site eBay and payments processor PayPal. Glaxo and Astra both were up 0.4%. Glaxo reports annual results at midday in London.
----------
FTSE 100: up 0.4% at 6,540.55
FTSE 250: up 0.3% at 20,744.45
AIM ALL-SHARE: up 0.5% at 1,195.27
GBP: down at USD1.3634 (USD1.3644)
EUR: down at USD1.2021 (USD1.2029)
GOLD: down at USD1,834.25 per ounce (USD1,837.20)
OIL (Brent): up at USD57.96 a barrel (USD57.58)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
UK services sector activity fell sharply in January due to stringent lockdown measures, but optimism improved on hopes for a swift rollout of Covid-19 vaccines, IHS Markit said. The IHS Markit/CIPS UK services purchasing managers' index print registered 39.5 points in January, down sharply from 49.4 in December and indicated the fastest reduction in business activity for eight months. The latest reading remained well below the 50.0 mark, which separates expansion from contraction, but beat the market forecast, cited by FXStreet, of 38.8. In addition, the seasonally adjusted UK composite output index registered 41.2 in January, down from 50.4 in December and back below the crucial 50.0 no-change threshold.
----------
Business sector activity in the eurozone worsened in January as lockdown restrictions hit the services industry, the latest figures from IHS Markit showed. The Markit eurozone services PMI reading was 45.4 points in January from 46.4 in December. The latest figure remained well below the 50.0 neutral mark which separates expansion from contraction, but beat the market forecast, cited by FXStreet, of 45.0. Further, Markit said January's reading marked the fifth successive month in which the index has posted a reading below the 50.0 no-change mark. The eurozone composite PMI score fell to 47.8 points in January from 49.1 in December.
----------
Italy's president is expected Wednesday to ask former head of the European Central Bank Mario Draghi to take over as prime minister following the collapse of the coalition government in the coronavirus-ravaged country. President Sergio Mattarella turned to the ex-central banker after Italy's ruling parties were unable to form a new government in the wake of a split last month that saw prime minister Giuseppe Conte resign. Draghi, an Italian economist credited with saving the eurozone at the height of the debt crisis in 2012, would take over at a crucial time, with his country still battling a raging pandemic. More than 89,000 people have died so far, the economy is in a deep recession and the government must come up with a credible plan within weeks to spend more than EUR200 billion in EU recovery funds. Conte's centre-left coalition had been in power since September 2019 but was fatally weakened last month when former premier Matteo Renzi withdrew his Italia Viva party in a row over the handling of the Covid-19 pandemic.
----------
Growth in China's service sector slowed in January as the amount of new work rose at the softest rate since August, mirroring the country's manufacturing sector, data from Caixin showed. The headline seasonally adjusted business activity index fell to 52.0 index points in January from 56.3 points in December, reflecting a further loss of momentum since November. Total new work for the month rose, albeit at the slowest rate since August due to a weaker increase in export sales, in spite of recovering customer demand and new client wins. On Monday, Caixin posted that the manufacturing PMI decreased to 51.5 in January from 53.0 in December, also noting a slowdown in output. As a result of this and the services sector, the China Composite Index posted 52.2 points, down from 55.8 in December.
----------
A new subsidy system to provide support for businesses will "propel the UK to the forefront of innovation and help create the jobs of the future", Business Secretary Kwasi Kwarteng said. The government minister announced plans for a long-term replacement to the EU's state aid regime, signalling a break away from Brussels' rules post-Brexit. It is hoped the new scheme will allow the UK to be more dynamic in helping businesses, and that it will encourage job creation and growth. Local authorities, public bodies and the devolved administrations will be able to decide if they can issue subsidies to businesses, following UK-wide principles, under the plans.
----------
Copyright 2021 Alliance News Limited. All Rights Reserved.
