(Alliance News) - Hopes for summer holidays abroad are fading after UK travel rules were tightened amid growing concerns over coronavirus variants and mutations, PA reports.
Travel bosses are facing "another lost summer" after Portugal was added to the amber travel list just weeks after the holiday hotspot reopened for British tourists.
Urging caution ahead of the scheduled domestic unlock on June 21, UK Transport Secretary Grant Shapps blamed the move on "a sort of Nepal mutation of the so-called Indian variant" having been detected, and an increased test positivity rate in the country.
The news comes as it was revealed that the variant first identified in India is now the dominant Covid strain in the UK.
Portugal, including the islands of Madeira and the Azores, will be removed from the green list which exempts the need to quarantine on return from 4am on Tuesday, meaning travellers will be required to self-isolate for 10 days at home.
The travel industry have reacted with dismay at Thursday's announcement, which also confirmed that no additional countries will move on to the green list for the time being, despite speculation that popular destinations such as some Spanish and Greek islands could be added.
Heathrow boss John Holland-Kaye has accused the UK government of "all but guaranteeing another lost summer for the travel sector".
Ryanair was down 0.9% early Friday. easyJet was down 2.5%, Jet2 down 0.9%, and British Airways-owner IAG down 2.1%.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: marginally higher, up 1.12 points at 7,065.47
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Hang Seng: down 0.3% at 28,891.16
Nikkei 225: closed down 0.4% at 28,941.52
DJIA: closed down 23.34 points, or 0.1%, at 34,577.04
S&P 500: closed down 0.4% at 4,192.85
Nasdaq Composite: closed down 1.0%, at 13,614.51
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EUR: soft at USD1.2112 (USD1.2125)
GBP: flat at USD1.4101 (USD1.4108)
USD: soft at JPY110.20 (JPY110.27)
Gold: up at USD1,872.35 per ounce (USD1,869.72)
Oil (Brent): firm at USD71.35 a barrel (USD71.25)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
0930 BST UK CIPS-Markit construction purchasing managers' index
1100 BST Ireland gross domestic product
0830 EDT US jobs report for May
1000 EDT US manufacturers' shipments, inventories & orders
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People who have had the Pfizer-BioNTech vaccine have lower antibody levels targeting the coronavirus variant first discovered in India than those against previously circulating variants in the UK, new data suggests. The research also suggests the levels of these antibodies are lower with increasing age and that levels decline over time. Researchers say this provides additional evidence in support of plans to deliver a vaccination boost to vulnerable people in the autumn. The new laboratory data from the Francis Crick Institute and the National Institute for Health Research UCLH Biomedical Research Centre also supports current plans in the UK to reduce the dose gap between vaccines.
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The risk of being infected with coronavirus is substantially reduced for up to 10 months after a first infection, a study suggests. Researchers found that care home residents with a previous infection were 85% less likely to be infected between October last year and February this year than residents who had never been infected. Staff with past infection were 60% less likely than staff who had not had the infection before, the study suggested.
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G7 ministers plan to discuss digital taxation as they meet in London, in particular whether tech companies such as Amazon and Google should pay taxes where they generate sales, as well as where their headquarters are based. It is the ministers' first in-person meeting since 2019, and also serves as preparation for the G7 summit of heads of state and government that is due to be held in Cornwall, England from June 11 to 13. UK Finance Minister Rishi Sunak has underlined the need for tax rates to reflect corporations' economic activity. Critics say big tech companies, often based in the US, do not pay enough in taxes in countries where customers and users are located. The issue has become a flashpoint in trade relations among the economic powers. The new US Treasury Secretary Janet Yellen will attend the meeting for the first time, alongside ministers from Britain, Germany, France, Italy, Japan and Canada.
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BROKER RATING CHANGES
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PEEL HUNT CUTS PROVIDENT FINANCIAL TO 'REDUCE'
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MORGAN STANLEY RAISES BOOHOO TO 'EQUAL-WEIGHT' ('UNDERWEIGHT') - TARGET 292 (280) PENCE
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COMPANIES - FTSE 100
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AstraZeneca said drug lynparza reduced the risk of breast cancer recurrence by 42% in phase 3 trials. The Cambridge, England-based pharmaceutical firm said that in the adjuvant treatment of patients with germline BRCA-mutated high-risk early breast cancer, lynparza reduced the risk of recurrence by 42% in the OlympiA phase 3 trial. BRCA refers to the breast cancer gene. A BRCA mutation is a mutation in either of the BRCA1 and BRCA2 genes, which are tumour suppressor genes. An estimated 2.3 million people were diagnosed with breast cancer worldwide in 2020 and BRCA mutations are found in approximately 5% of breast cancer patients. Lynparza also demonstrated a statistically significant and clinically meaningful improvement in the key secondary endpoint of distant disease-free survival in the overall trial population. Lynparza reduced the risk of distant disease recurrence or death by 43%. Lynparza is being co-developed with the US's Merck & Co.
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AstraZeneca also said it has appointed Aradhana Sarin as its new CFO. The appointment is conditional upon the closing of the drugmaker's acquisition of Alexion Pharmaceuticals. Sarin, who is currently is CFO of Alexion, will succeed Marc Dunoyer who will step down as CFO and retire from AstraZeneca's board on August 1. Dunoyer has served as CFO for seven years and will take up a new role within the rare disease unit of AstraZeneca, and develop Alexion's strategic direction.
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Rio Tinto said it has appointed Ben Wyatt as a non-executive director and will join the board on September 1. The miner said Wyatt brings "extensive public policy, regulatory and international trade experience" to the board from his time as Treasurer & Aboriginal Affairs Minister in the Western Australian government. Chair Simon Thompson said "I am delighted to welcome Ben to the Rio Tinto board. With family links to the Pilbara and an impressive track record in public life, Ben's knowledge of public policy, finance, international trade and Indigenous affairs will significantly add to the depth of knowledge on the board at a time when we are seeking to strengthen relationships with key stakeholders in Australia and around the world." The Financial Times said it was the first time that Rio Tinto has appointed an indigenous Australian to its board. The move follows the public outcry and regulatory scrutiny that followed after the miner blew up a 46,000-year-old Aboriginal heritage site to expand the Pilbara iron ore mine in Western Australia. It resulted in Rio's chief executive resigning and its chair saying he will stand down in 2022.
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COMPANIES - FTSE 250
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ContourGlobal said it has teamed with Energy Infrastructure Partners to acquire Green Hunter Group from a group of private shareholders. Green Hunter is a portfolio of solar photovoltaic assets totalling 18 megawatts located in Italy. The deal is valued at EUR49.7 million and is on a debt-free, cash-free basis. ContourGlobal will own 51% of Green Hunter, while EIP will own 49% and the acquisition is expected to complete during the third quarter. "The transaction is another operationally led bolt-on acquisition as part of our roll-up strategy in Italy with our long-time partner EIP, generating operational synergy and attractive risk adjusted returns for our shareholders. We continue to see a strong pipeline of further opportunities in Italy," ContourGlobal said.
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Hipgnosis Songs Fund said it has acquired the music catalogue of songwriter, producer and musician Joel Little. No financial details of the deal were disclosed, though Hipgnosis said the package generate revenue of USD4.3 million in 2019. Little has worked with artists such as Lorde, Taylor Swift, Imagine Dragons, Shawn Mendes, Sam Smith, James Bay and the Jonas Brothers. Merck Mercuriadis, founder Hipgnosis Songs Fund said: "Joel is one of the most important songwriters in the world today. More than eight years on from the iconic song that is Royals, he has continued to deliver massive hits for Lorde, Taylor Swift, Khalid, Imagine Dragons and many more. His songs are amongst the most streamed songs of the last 10 years amassing more than 15 billion streams globally."
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COMPANIES - GLOBAL
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United Airlines announced plans to buy 15 planes from airline startup Boom Supersonic in a move that could revive the high-speed form of air travel after the Concorde was wound down in 2003. Under the deal, United would purchase Boom's 'Overture' aircraft once the planes meet "United's demanding safety, operating and sustainability requirements" with an aim to start passenger travel in 2029, the companies said in a joint press release. The announcement represents a potential comeback to a once heavily-touted method of travel, although some analysts expressed scepticism, particularly over the relatively speedy timeframe. The agreement covers 15 planes and includes an option for United to obtain another 35 aircraft. The companies did not disclose financial terms.
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Friday's Shareholder Meetings
B90 Holdings PLC - AGM
Octopus Renewables Infrastructure Trust PLC - GM re dividend
Schroder UK Public Private Trust PLC - AGM
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By Tom Waite; thomaslwaite@alliancenews.com
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