Global stock markets rise after US coronavirus treatment approval – as it happened

Jasper Jolly

from on 2020-08-24 14:04 (#578M7)

Rolling live coverage of business, economics and financial markets

3.04pm BST

Global markets gained on Monday on the back of US regulatory approval for a blood plasma treatment for Covid-19, as investors hoped for an effective response to the virus.

US President Donald Trump is clearly hoping that his administration can take effective steps against the virus before the November presidential election, and investors also appeared to take heart from the announcement.

2.37pm BST

The S&P 500, the main Wall Street benchmark, has pushed to a new record high amid optimism over the prospects for a treatment for Covid-19 using the blood plasma of recovered patients.

The index gained 27.21 points, or 0.8% in opening trades to hit 3,424.37 points.

2.22pm BST

It's a few minutes until Wall Street begins its week, and it looks like shares are going to follow the risk-on lead from the rest of the world's major stock indices.

Futures trades suggest the S&P 500 benchmark will gain 0.9%, while the Dow Jones industrial average and the Nasdaq could jump by 1% at the opening bell.

2.19pm BST

Microsoft has joined the court battle between Apple and Epic Games, filing a legal brief supporting the Fortnite developer's right to carry on developing software for Mac and iOS while the case continues.

Epic Games' Unreal Engine is critical technology for numerous game creators including Microsoft. Apple's discontinuation of Epic's ability to develop and support Unreal Engine for iOS or macOS will harm game creators and gamers.

2.13pm BST

Britons' spending on subscription services - including meal kits and video streaming packages - soared during lockdown, as consumers paid for entertainment while confined to their homes.

2.06pm BST

If the Brent crude futures price gains another cent to the $46.23 per barrel mark it will represent the highest level since early March - in a sign that investors believe the worst of the economic turmoil has hit.

1.32pm BST

More than half the oil rigs in the Gulf of Mexico have shut down ahead of the arrival of Hurricane Marco and Tropical Storm Laura, wiping about 1 million barrels of oil a day in oil production from the US.

Almost every year we get 1 to 2 major storm events which result in material production loss during the several days. [But] volumes then come back quickly and the total underperformance in average daily figures for the whole month rarely exceeds 200,000 barrels a day.

1.21pm BST

The FTSE 100 rally is showing no signs of letting up: London's blue chips have now gained 1.9% today.

It reflects a general positive mood on global stock markets after the US approved a blood plasma treatment for Covid-19. In the absence of much other data investors are in risk-on mode.

European markets have kicked off the week in style, with the FDA's decision to approve the convalescent plasma coronavirus treatment raising hopes that we could see a vaccine fast-tracked before long.

With the US election looming large for Donald Trump, we are likely to continue seeing a proactive approach from the president as he seeks to expedite the provision of treatments and vaccines in a bid to overcome this virus before the polls open in November.

12.28pm BST

Rio Tinto executives will pay for the destruction of an Aboriginal heritage site in Australia - but they will still keep their jobs.

12.15pm BST

With two bits of good news for the retail sector, should we be counting on a V-shaped recovery for the economy?

At first glance, the Springboard footfall figures are support that impression, according to James Smith, developed markets economist at ING, an investment bank. However, dig a little deepper and the numbers reveal consumers are still cautious about returning to the high street".

11.49am BST

Tesco is permanently hiring 16,000 extra staff taken on during the pandemic to help support a surge in online grocery trade.

Since the start of the pandemic, our colleagues have helped us to more than double our online capacity, safely serving nearly 1.5m customers every week and prioritising vulnerable customers to ensure they get the food they need.

These new roles will help us continue to meet online demand for the long term, and will create permanent employment opportunities for 16,000 people across the UK.

11.45am BST

Footfall across all retail destinations throughout the UK rose by +4.1% last week from the week before, according to data from tracking company Springboard that will boost hopes about the pace of the UK's economic recovery.

The retail industry has been among the hardest hit during the pandemic, but Springboard said there had been a significant acceleration in footfall after it rose 0.8% in the previous week and and by 1.8% in the same week last year.

It seems that the increased quarantine measures imposed last week on a number of overseas destinations are having a positive impact on UK footfall. Footfall in UK retail destinations last week not only rose on a week on week basis, but the uplift was more than four times as large as the week before, and two and a half times as large as the same week last year.

The outcome is a further incremental recovery in footfall compared with 2019, and the sixteenth consecutive week in which the annual decline has lessened which offers a glimmer of hope for retailers.

10.45am BST

If the UK had Dominic Cummings's Barnard Castle eye test, Ireland has perhaps outdone it with golfgate", a controversy that has already claimed a minister and has the EU's powerful trade commissioner, Phil Hogan, under serious pressure.

1) I wish to apologise fully and unreservedly for attending the Oireachtas golf society dinner on Wednesday night last.

10.25am BST

Bunzl, a distributor of products such as medical supplies and food packaging, is the second biggest riser on the FTSE 100 (after BT) after reinstating its dividend.

10.09am BST

At the middle of the morning it is turning into a pleasant day for investors on the FTSE 100: the index has now gained 1.9%, or 112 points, to hit 6,114.

Only six companies have lost ground, illustrating the broad risk-on sentiment thanks in part to the US approval of a treatment for Covid-19 using the blood plasma of recovered patients.

9.28am BST

Pearson, the education publisher, has appointed former Disney executive Andy Bird as its new chief executive as it continues to move towards digital sales.

Bird was appointed to the Pearson board on 1 May, and will take over as chief executive on 19 October.

Since joining the board earlier this year I have quickly come to see the enormous potential across the company's businesses, the strength and dedication of the people who work here, and the great opportunities that exist for Pearson to become a digital first learning company.

9.08am BST

JD Wetherspoon's sales have fallen by almost a fifth since the reopening of its chain of pubs last month and the company warned it will report a loss for its financial year because of the coronavirus pandemic.

8.57am BST

BT, the telecoms company, is the biggest riser on the FTSE 100 this morning after a report at the weekend that it has hired advisers to fend off potential takeover attempts.

Its shares have gained 7% so far this morning, after Sky News reported that it had hired investment bankers Goldman Sachs and Robey Warshaw to update its bid defence strategy".

8.37am BST

Shares in Amigo Holdings, the controversial guarantor loans provider, have tumbled by a quarter this morning after the latest salvo in a brutal battle for control of the business.

Amigo's founder, James Benamor, remains the largest shareholder through his Richmond Group vehicle. On Friday he wrote a blog post calling for himself to be appointed as chief executive of the lender's parent company, while keeping on newly appointed chief executive Glen Crawford as head of the lending subsidiary, Amigo Loans Ltd.

Mr Crawford has made it clear to the board that he is not prepared to work with Amigo in any circumstances where Mr Benamor returns to Amigo's governance structure in a position of influence, and that Mr Crawford's decision to return as CEO was predicated on the clear statement from Mr Benamor that he was selling down Richmond Group Limited's controlling shareholding in Amigo to a position of zero.

In the event that Mr Benamor elects to requisition a general meeting for shareholders to vote on his proposals, and should he be successful in gaining shareholder approval for his proposals, the board has agreed with Mr Crawford that he may terminate his employment contract immediately. The board is strongly of the view that such an outcome would be materially detrimental to the interests of the company and its shareholders taken as a whole.

8.14am BST

Mike Ashley's Frasers Group will use the newly purchased Dave Whelan Sports gyms to expand its Everlast fitness brand, it said on Monday.

The transaction compliments [sic] the existing gym and fitness club portfolio within the company's group and is consistent with the group's elevation strategy. Frasers Group looks forward to elevating the gym and fitness assets acquired pursuant to the transaction under the group's existing iconic Everlast brand, and is also pleased to have saved a number of jobs.

8.03am BST

The FTSE 100 has jumped by 1.2% at the opening bell, up 69 points at about 6,071 points.

The Euro Stoxx index, which measures shares including the FTSE and other major European companies, gained 1.2%. It was helped by a gain of 1.3% on France's Cac 40 and 1.4% for Germany's Dax index.

7.55am BST

Good morning, and welcome to our live coverage of business, economics and financial markets.

Stock markets in Asia have risen across the board, with investor optimism at least in part ascribed to new hopes around coronavirus treatment options.

This is what I've been looking to do for a long time. Today I'm pleased to make a truly historic announcement in our battle against the China virus that will save countless lives.

Source	RSS or Atom Feed
Feed Location	http://feeds.theguardian.com/theguardian/business/economics/rss
Feed Title
Feed Link	http://feeds.theguardian.com/