AstraZeneca nerve disease treatment approved, IP Group commits £11.8m to investee
London open
The FTSE 100 is expected to open 26 points lower on Friday, having closed down 0.27% on Thursday at 7,694.73.
Stocks to watch
The US Food and Drug Administration has approved the Wainua nerve disease treatment jointly developed by AstraZeneca and Ionis Pharmaceuticals. The green light marks the first-ever regulatory approval in the US for the treatment of adults with polyneuropathy of hereditary transthyretin-mediated amyloidosis. Additional regulatory reviews are already underway in Europe and other countries.
IP Group is participating in a follow-on funding round for an unnamed portfolio company, expecting to gain £40m, or 4p per share. The FTSE 250 firm committed £11.8m to the round, which was set to be completed in mid-January with the support of existing and new investors. However, the overall impact on its portfolio's value was uncertain, as it anticipated that the gain from the investment could be offset by other fair value reductions during the year-end review.
Newspaper round-up
Property sales and demand across the UK were almost a fifth higher in the final weeks of 2023 than a year earlier as sentiment improved, according to a survey. The property website Zoopla said new sales agreed were 17% higher in December than this time last year, when higher mortgage rates hit market activity. Demand is up 19%, measured by would-be buyers contacting agents to inquire about and arrange viewings for a specific property listed on Zoopla. An increase in the number of homes for sale is increasing choice and supporting sales, it said. – Guardian
Borrowing on the likes of credit cards and overdrafts will rise by £5,000 a household in the next five years, according to Labour analysis that the party says shows the fragility of national economic health. Analysis of statistics in the November economic outlook produced by the government’s Office for Budget Responsibility shows that unsecured debt, also covering many car loans, is forecast to rise £154bn by 2028, the party said. – Guardian
Jeremy Hunt has hinted at further tax cuts in the spring in the hope an anticipated fall in interest rates will lower the cost of servicing Britain’s debt. The Chancellor described a faster-than-expected drop in inflation last month as “really good news”, adding that Downing Street was already eyeing further tax cuts. – Telegraph
The chief executive of Royal Mail has been warned he could be hauled in front of MPs over “disturbing” claims that the postal service is prioritising parcel deliveries over letters. The Commons business and trade committee has demanded that Martin Seidenberg explain how the struggling company will improve punctuality, amid fresh claims that it is failing to meet its legal obligations. – Telegraph
The protracted attempt by Revolut to secure a banking licence from City regulators has received a boost after the fintech company’s external auditor said it had cleared up questions about the company’s revenues. Revolut faced intense scrutiny in March when its much-delayed accounts for 2021 showed that BDO had raised concerns about almost £477 million of the company’s annual revenues that year. – The Times
US close
Wall Street stocks resumed their recent rally on Thursday after registering some heavy losses in the previous session.
At the close, the Dow Jones Industrial Average was up 0.87% at 37,404.35, while the S&P 500 advanced 1.03% to 4,746.75 and the Nasdaq Composite saw out the session 1.26% firmer at 14,963.87.
The Dow closed 322.35 points higher on Thursday, reclaiming some of the previous session's losses.
Yesterday's losses came as investors indulged in a little bit of profit-taking, leading to the worst single-day drop since October and snapping the blue-chip's winning streak at nine-straight sessions.
In focus on Thursday, Treasury yields continued to fall from recent highs, with the benchmark ten-year note hitting its lowest level since July before regaining some ground to sit at 3.885%.