(Alliance News) - The following is a summary of top news stories Monday.
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COMPANIES
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AstraZeneca reported the sale of a range of hypertension drugs as well as two positive drug trial outcomes. Astra is selling the commercial rights to Inderal, Tenormin, Tenoretic, Zestril, and Zestoretic to Basildon-based Atnahs Pharma for USD350 million upfront. The FTSE 100-listed pharmaceutical company said stroke treatment Brilinta met its primary endpoint in a phase three trial, achieving a clinically significant reduction in the risk of death in strokes compared to just aspirin. Enhertu, a gastric cancer treatment, also met its primary endpoint, in a phase II trial. Astra said the drug achieved a "statistically significant and clinically meaningful improvement" in the response and survival rate of patients with unresectable or metastatic gastric of gastroesophageal cancer. Earlier Monday, Chicago-based AbbVie said it would be selling the rights to brazikumab to Astra, which is in development for the treatment of gastrointestinal conditions such as Crohn's disease. No financial details were given.
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Amigo Holdings said it has launched a strategic review and formal sale process in a bid to "maximise value for its shareholders". This may result in a sale of the company. Amigo said controlling shareholder Richmond Group is a "willing seller" of its 60% stake. The review will be looking into the lender's "strategy, ownership and operating model". Amigo said it is considering the potential sale of the company as a whole, the sale of parts of the group, the sale of the UK business, and a potential de-listing of the company's shares. Amigo has appointed RBC Capital Markets to handle the sale process. Turning to the lender's current trading, Amigo confirmed its loan book growth and impairments for the nine months to December 31 were in line with guidance. Amigo said it continues to face a "challenging operating environment".
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MARKETS
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London shares were sharply lower with mining and travel stocks weighing on the FTSE 100 as fears over the spread of the coronavirus escalate. Brent oil hit its lowest level in three months. The pound was up against the dollar after positive UK mortgage approvals figures. Wall Street was called for a sharply lower open, with major stock indices pointed down 1.5%.
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FTSE 100: down 2.3% at 7,410.95
FTSE 250: down 1.8% at 21,365.31
AIM ALL-SHARE: down 1.4% at 954.70
GBP: up at USD1.3091 (USD1.3068)
EUR: flat at USD1.1023 (USD1.1025)
GOLD: up at USD1,584.07 per ounce (USD1,571.18)
OIL (Brent): down at USD58.70 a barrel (USD60.72)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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The number of mortgages approved by high street banks jumped to the highest annual total in a decade last year amid signs the housing market is moving up a gear. Commenting on the report from trade association UK Finance, economists suggested that low mortgage rates have already helped to boost activity, while a further bounce in mortgage approvals following the mid-December general election result could still be on the cards. UK Finance said that, in total, 982,286 mortgages were approved by the main high street banks during 2019, 7.4% more than in 2018. The trade association said 2019 marked the highest annual total for mortgage approvals since 2009 - when 986,742 home loans were handed out.
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The toll from China's viral epidemic spiked on Monday to 80 dead with hundreds of new infections despite unprecedented quarantines and travel lockdowns, as foreign governments scrambled to help their trapped citizens. The virulence of a contagion causing fear nationwide has prompted authorities to impose transport curbs around China to cut off transmission routes, and extend a national holiday to delay people travelling back to work. With many thousands of foreigners trapped in the ground-zero city of Wuhan, which is under a virtual lockdown, the US and France were among several countries formulating plans to evacuate their citizens by plane. With the coronavirus also expanding globally, World Health Organization chief Tedros Adhanom Ghebreyesus headed to Beijing to meet with government officials on the crisis. The national government decided it would extend the Lunar New Year holiday and related school closures beyond the original Thursday end date to "reduce population flows," state media reported. The holiday was extended to Sunday.
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Irish Taoiseach Leo Varadkar has warned the UK the EU will have the upper hand in post-Brexit trade talks. In a footballing analogy, he warned the bloc has a "stronger team" because of its far larger population and market in comparison. Varadkar also suggested UK Prime Minister Boris Johnson may run out of time to get a trade deal signed before the end of the year when the transition period finishes. The Taoiseach, who is fighting a general election, spoke to the BBC ahead of meeting with the EU's chief negotiator, Michel Barnier, in Dublin. "The EU is a union of 27 member states. The UK is only one country. And we have a population and a market of 450 million people," Varadkar said.
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Britain's sovereignty is at risk if the country allows Chinese tech giant Huawei to help build its 5G infrastructure, the US Secretary of State has warned. Mike Pompeo described the decision facing the National Security Council as "momentous" in a last-ditch plea to ministers who are expected to make the call on Tuesday. The US administration has previously warned allies not to allow Huawei to form part of their 5G networks, claiming it would be a security risk, something the company vehemently denies. But Pompeo wrote on Twitter on Sunday night: "The UK has a momentous decision ahead on 5G. "British MP Tom Tugendhat gets it right: 'The truth is that only nations able to protect their data will be sovereign'.
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US Democrats are demanding former national security adviser John Bolton testify before the Senate in President Donald Trump's impeachment trial, as his new book is reportedly set to reveal damaging information. The New York Times reported on a draft of Bolton's upcoming book which allegedly says Trump told his adviser that he was withholding hundreds of millions of dollars in military aid to Ukraine until Kiev helped him dig up dirt on his domestic political rivals, including Joe Biden. "There can be no doubt now that Bolton directly contradicts the heart of the President's defence and therefore must be called as a witness at the impeachment trial of President Trump," the Democratic impeachment managers said in a statement. The White House and Republicans in the Senate are set to block any witness testimony in the impeachment trial, seeking a speedy conclusion.
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Italy's far-right opposition leader Matteo Salvini looked set Sunday to have failed to score a historic regional election win in Emilia-Romagna, a traditional left-wing bastion. If confirmed, the result would be a relief for Prime Minister Giuseppe Conte and his embattled coalition government, whose main raison d'etre is to keep Salvini out of power. Emilia-Romagna's centre-left president Stefano Bonaccini was set to be re-elected with 51.8%, against 41.5% for the League's Lucia Borgonzoni, according to the SWG institute.
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