25th Aug 2020 11:25
(Alliance News) - The following is a summary of top news stories Tuesday.
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COMPANIES
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AstraZeneca said the first patients have now been dosed in its phase one trial of Covid-19 treatment, AZD7442. The trial, named NCT04507256, will evaluate AZD7442's safety, tolerability, and pharmacokinetics. Pharmacokinetics describes the movement of a treatment into the body, as well as through and out of the body. AZD7442 is a combination of two monoclonal antibodies and is being developed for the development and treatment of Covid-19. These antibodies are derived from convalescent patients infected with SARS-CoV-2 and were discovered by Vanderbilt University Medical Center and licensed to AstraZeneca in June. Astra then optimised the antibodies, extending their half-life so as to "afford at least six months of protection from Covid-19". If AZD7442 proves to be tolerated and has a "favourable safety profile" in the NCT04507256 trial, then Astra will move to larger late-stage phase 2 and phase 3 trials. These later trials will evaluate AZD7442's efficacy as a possible preventative and treatment approach against the virus.
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Aveva Group said it has signed an agreement to acquire Softbank Group-backed data management software firm OSIsoft for USD5.0 billion. San Leandro, California-based OSIsoft's PI System is a system of record for customers for data capture, storage, analysis and sharing of real-time industrial sensor-based data, Aveva explained, adding that through the system, customers are able to draw insights, optimise operations and drive digital transformation. Earlier in August, Aveva, a Cambridge-headquartered engineering & industrial software firm, confirmed it was in talks with OSIsoft over the acquisition. On Tuesday, Aveva said it expects the acquisition to strengthen its position as a global leader in industrial software, with combined revenue of around GBP1.2 billion and adjusted earnings before interest, tax of around GBP330 million for the enlarged group.
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James Fisher & Sons said its performance deteriorated in the first half of 2020 amid lower energy prices and coronavirus pandemic. The marine service provider said pretax profit dropped by 59% to GBP7.1 million in the six months to the end of June from GBP20.9 million reported a year earlier, as revenue fell by 10% to GBP258.1 million from GBP286.9 million. The company said the combination of Covid-19 and the sharp decline in energy prices resulted in projects in its subsea operations in both Renewables and Oil & Gas being deferred into the second half of 2020 and beyond. In response to these challenges, James Fisher said it has taken actions, which are ongoing, to restructure its Marine Support division. The company has declared an interim dividend of 8.0 pence per share, reduced by 29% from 11.3p paid a year earlier.
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Carnival said its Cunard cruise line has extended the operation pause for three of its ships from November until around spring 2021. Carnival said that following guidance from the UK Foreign & Commonwealth Office as well as the complexity of operating world voyages, operations for Cunard's ship Queen Elizabeth will be paused until March 25, 2021, Queen Mary 2 will be halted until April 18, 2021 and Queen Victoria until May 16, 2021. Carnival also said Italian arm Costa Cruises has obtained a RINA Biosafety Trust Certification and has introduced Covid-19 tests for all guests on board its ships. Guests for cruises which are scheduled to restart in September will undergo swab tests before boarding.
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MARKETS
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London shares were slightly higher amid optimism surrounding the US-China trading relationship and hopes for a Covid-19 treatment. In the FTSE 100, Aveva was the best performer, up 4.5%. US stock market futures were pointed to a higher open, with Wall Street looking to extend its record-setting run that brought fresh highs for the S&P 500 and Nasdaq Composite.
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FTSE 100: up 0.1% at 6,113.56
FTSE 250: up 0.1% at 17,690.63
AIM ALL-SHARE: up 0.1% at 962.02
GBP: up at USD1.3112 (USD1.3075)
EUR: up at USD1.1835 (USD1.1802)
GOLD: down at USD1,925.11 per ounce (USD1,933.88)
OIL (Brent): up at USD45.33 a barrel (USD44.88)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Top Chinese and US negotiators spoke on the phone and agreed to "push forward" their phase one economic deal, amid soaring tensions between the two sides on several fronts. The US and China signed the accord in January, bringing a partial truce in their lingering trade war and obliging Beijing to import an additional USD200 billion in American products over two years, ranging from cars and machinery to oil and farm products. But the Covid-19 pandemic has put pressure on the agreement and China's purchases of those goods have been lagging. Washington said the parties "addressed steps that China has taken to effectuate structural changes called for by the agreement". Those changes, it said, would "ensure greater protection for intellectual property rights, remove impediments to American companies in the areas of financial services and agriculture, and eliminate forced technology transfer". It added that both sides "see progress and are committed to taking the steps necessary to ensure the success of the agreement".
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Gross domestic product in Germany fell by 9.7% in the second quarter of 2020 on the first quarter after the novel coronavirus pandemic led to massive declines in almost all areas. However, the GDP drop in the second quarter was not as steep as reported in the first release on July 30 of 10%, according to figures published by the Federal Statistical Office. The slump in the German economy was thus much larger than during the financial crisis of just over a decade ago, when output fell by 4.7% in the first quarter of 2009. It was the sharpest decline since quarterly GDP calculations for Germany started in 1970, Destatis noted. On a year-on-year basis, GDP was down a price-adjusted 11% in the second quarter.
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The first night of the Republican convention set out to defend US President Trump's response to the coronavirus pandemic and accuse the rival Democrats of being weak on crime, soft on China and likely to stifle economic growth if Joe Biden becomes president. Trump, earlier in the day, was unanimously nominated as the party's candidate for president. He showed up in North Carolina for an unscheduled in-person speech to delegates of the Republican National Convention, despite the pandemic. Trump, 73, used his speech before the boisterous group to claim that the Democrats were attempting to steal the November election through mail-in ballots, which the centre-left bloc is promoting to reduce the risk of spreading the new coronavirus. "They are using Covid to steal an election, they are using Covid to defraud our people, all of our people, of a free and fair election," Trump said. "The only way they can take this election away from us is if this is a rigged election."
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