(Alliance News) - European leaders are backing an initiative from Brussels to raise EUR7.5 billion to find a vaccine to curb the global coronavirus pandemic, AFP reports.
The president of the European Commission, Ursula von der Leyen, outlined the fund-raising plan for the scientific fight-back against COVID-19 on Friday.
An online pledging conference will take place on Monday to plug gaps in financing of research.
Italian Prime Minister Giuseppe Conte, French President Emmanuel Macron, and German Chancellor Angela Merkel gave their support in an open letter published in weekend newspapers.
The president of the European Council, Charles Michel, and Norway's Prime Minister, Erna Solberg, also signed and all gave their backing to the World Health Organization in the face of US criticism about its handling of the crisis.
The funds raised will "kickstart an unprecedented global cooperation between scientists and regulators, industry and governments, international organisations, foundations and healthcare professionals", the leaders said.
But they warned that more money would still be needed to manufacture and deliver "available, accessible and affordable" medicines across the world.
"If we can develop a vaccine that is produced by the world, for the whole world, this will be a unique global public good of the 21st century," they added.
Britain, Canada, France, Germany, Italy, Japan, Norway, Saudi Arabia and the European Commission, are co-hosting the conference, which is part of a month-long international investment drive before the Global Vaccine Summit on June 4.
UK Prime Minister Boris Johnson, who spent three nights in intensive care with COVID-19, said finding a treatment was "the most urgent shared endeavour of our lifetimes".
Here is what you need to know at the London market open on Monday:
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MARKETS
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FTSE 100: down 0.4% at 5,740.47
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Hang Seng: down 3.8% at 23,698.53
Nikkei 225: Tokyo market closed for holiday.
DJIA: closed down 622.03 points, 2.6%, at 23,723.69
S&P 500: closed down 2.8% at 2,830.71
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GBP: down at USD1.2448 (USD1.2593)
EUR: soft at USD1.0942 (USD1.0955)
Gold: up at USD1,705.58 per ounce (USD1,685.70)
Oil (Brent): soft at USD26.12 a barrel (USD26.68)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
Japan Nature Day. Financial markets closed.
China Labour Day. Shanghai market closed.
0955 CEST Germany manufacturing PMI
1000 CEST EU eurozone manufacturing PMI
1000 EDT US manufacturers' shipments, inventories & orders
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Implementing social distancing at airports would require kilometre-long queues for each jumbo jet, according to the chief executive of Heathrow in London. Heathrow's John Holland-Kaye has warned that the nation's major international airports do not have enough space for social distancing to be a solution for safe travel post-lockdown. Holland-Kaye writes in The Daily Telegraph: "Forget social distancing – it won't work in aviation or any other form of public transport, and the problem is not the plane, it is the lack of space in the airport. "Just one jumbo jet would require a queue a kilometre long." Holland-Kaye also called on UK Prime Minister Boris Johnson to quickly find a "common international standard" of alternative solutions that could be installed in time for summer.
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France said it will not quarantine anyone arriving from the EU, the Schengen area or the UK due to the coronavirus, as it prepares to start easing confinement measures after two months of lockdown. On Saturday, the government had said it would extend the state of emergency to contain the crisis until at least July 24, and anyone entering France would have to remain in isolation for two weeks. But the quarantine rules would not apply to "anyone arriving from the EU, the Schengen zone or Britain, regardless of their nationality", the presidency said on Sunday. And for French and EU citizens arriving in France from other regions outside the EU, the Schengen area and Britain, "the rules will be announced in the coming days", the presidency said.
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BROKER RATING CHANGES
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LIBERUM RAISES AG BARR TO 'BUY' ('HOLD') - TARGET 625 (580) PENCE
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HSBC RAISES HILTON FOOD TO 'BUY' ('HOLD') - TARGET 1320 PENCE
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HSBC CUTS DART GROUP PRICE TARGET TO 880 (1710) PENCE - 'BUY'
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COMPANIES - FTSE 250
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Tate & Lyle said it expected its results for the financial year to March 31 to be slightly ahead of its previous guidance. The ingredients producer said that while trading in March showed little impact from the Covid-19 pandemic, lockdowns in April have led to changes in demand patterns for its products. "Accordingly, we expect to announce results slightly ahead of our guidance coming into the year," the company said. Further, Tate & Lyle said damage caused by lower product demand due to the virus outbreak was partially mitigated by actions taken in March to optimise cash and reduce costs as the pandemic unfolded. These measures included freezing salary increases and recruitment, stopping non-essential discretionary spending and reprioritising capital commitments, the company added. Tate & Lyle will report annual results on May 21.
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Inchcape said it appointed former Fujitsu executive Duncan Tait as new chief executive with effect from June 1. Tait will assume the role in full on July 1 following a handover period with outgoing CEO Stefan Bomhard, who is leaving to join tobacco firm Imperial Brands. Inchcape Chair Nigel Stein said: "Duncan has worked with numerous industries and governments around the world and also brings with him experience of the automotive industry having been Fujitsu's executive sponsor for Ford Motor Company. He was accountable for programmes with Volkswagen, Daimler and BMW, including work on autonomous vehicle and mobility projects. His almost ten-year experience of Japanese business and culture will also be valuable to our business."
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IG Group has hired Charlie Rozes as its new chief financial officer. Rozes joins IG on June 1 as CFO, and current CFO Paul Mainwaring will retire after a month handover. Rozes is former finance director at insurer Jardine Lloyd Thompson.
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COMPANIES - OTHER MAIN MARKET AND AIM
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Pendragon confirmed press reports that it has held discussions with peer Lookers over a potential merger of the two car dealers, but discussions have now been terminated. "Pendragon remains well-positioned having already taken significant steps to reshape the business and to cut costs both in advance, and as a result, of the recent events which have temporarily curtailed business activity. And, as previously announced, Pendragon continues to benefit from the support of its stakeholders during the current disruption," Pendragon said. Over the weekend, Sky News reported that Pendragon had approached Lookers over the possibility of a tie-up, but Lookers had rebuffed its advances. Lookers is in the midst of an investigation by the UK Financial Conduct Authority over fraudulent activity. Pendragon, which owns the Evans Halshaw dealership, has been hit hard by the coronavirus outbreak, responding by cutting the pay of senior executives to preserve cash earlier this month.
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COMPANIES - INTERNATIONAL
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Spanish telecoms company Telefonica and London-based broadband internet service provider Liberty Global are exploring a combination of their respective UK operations, Bloomberg News reported, citing people with knowledge of the matter. The potential deal would unite Telefonica's O2 wireless unit and Liberty Global's Virgin Media business. A representative for Telefonica declined to provide a comment to Bloomberg, while the news agency wasn't able to immediately able to contact a spokesperson for Liberty Global for a comment. Separately, the Financial Times reported that O2 has threatened a legal challenge to the rules set by the UK's communications regulator for sale of spectrum for 5G networks. According to FT, citing sources familiar with the matter, O2's complaint relates to how the blocks of spectrum are to be sold. O2 wants the Office Of Communications to harmonise the lots of spectrum so that they are contiguous, instead of frequencies being fragmented slices.
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Monday's Shareholder Meetings
Matomy Media Group
Informa (re share issue)
Rightmove
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By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
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