Weekly review

Equity view

GlaxoSmithKline and Sanofi have delayed their Covid-19 vaccine programme after their vaccine showed a weak response in people aged 50 and over.

Foxtons said it would buy back up to £3m of shares and forecast an annual profit after trading improved in the fourth quarter.

Zurich Insurance said on Thursday that it has agreed, along with the Farmers Exchanges, to buy MetLife’s property and casualty business in the US for $3.94bn.

French Connection said trading since the end of the second Covid-19 lockdown was encouraging and orders for spring 2021 were better than expectations.

Automotive retailer Inchcape said full-year profits would be “materially ahead” of expectations and was considering reinstating its dividend after a better-than-expected performance in November.

Packaging company DS Smith reported a slide in half-year profits on Thursday but resumed dividend payments as it sounded an upbeat note on the outlook and demand from online shopping.

Data and analytics firm Ascential said on Thursday that it had continued to deliver "a robust performance" in 2020 despite the ongoing Covid-19 pandemic.

Industrial and electronics products group Electrocomponents on Thursday unveiled two acquisitions worth £150m and a £180m share placing.

Security firm G4S on Wednesday rejected an increased offer from Canada’s GardaWorld, just hours after accepting a rival higher bid from US firm Allied Universal.

Kitchen and joinery products supplier Howden Joinery said on Wednesday that full-year pre-tax profit was set to be around 10% above the top end of current analyst forecasts following continued strong trading.

British American Tobacco backed its guidance for 2020 on Wednesday but said constant currency adjusted revenue growth was set to be at the high end of the range after the Covid-19 pandemic dented revenue by less than previously anticipated.

Software company Sage on Wednesday said it had agreed to sell its Polish business to funds advised by Mid Europa Partners for around £66m.

Euromoney Institutional Investor has announced the acquisition of WealthEngine, a US SaaS platform providing data-driven intelligence and predictive analytics to wealth managers, luxury brands and not-for-profit organisations, for $14.5m.

Property group LondonMetric has leased its Tyseley development near Birmingham to an unnamed retailer on a new 15-year lease at an annual rent of £1.6m.

Kaz Minerals lifted its full-year copper and gold production guidance on Tuesday, as it said Nova Resources has changed its £3bn offer for the company to a straight takeover offer.

Commercial-stage biopharmaceutical company Amryt Pharma has entered into agreements to raise $40m, it announced on Tuesday, to fund working capital as well as potential acquisitions and licence deals.

Games Workshop declared a dividend of 60p a share as the miniature wargames maker upgraded its first-half profit forecast for the third time in three months.

Sanne said on Monday that full-year revenues are set to be "marginally" below its previous expectations as it announced the acquisition of Scandinavian and Guernsey private equity fund administrator Private Equity Administrators Group (PEA) for up to €30.25m.

Ted Baker's first-half loss widened as the struggling fashion brand's revenue dropped 46% during the Covid-19 crisis.

B&Q owner Kingfisher became the latest firm to repay Covid-19 business rates relief and added that projected full-year cost savings would more than halve as a result.

Economic news

The pound fell against the euro and the dollar after Ursula von der Leyen warned trade talks with the UK were likely to fail.

EV carmaker Britishvolt said on Friday that it had abandoned its plans to build the UK’s first gigafactory in Wales and has chosen a location in northern England instead.

The UK economy slowed sharply in October, dented by the reintroduction of certain Covid-19 restrictions, according to figures released on Thursday by the Office for National Statistics.

The UK house market continued to boom in November with prices at a 21-year high, industry research showed on Thursday.

Honda has temporarily shut its Swindon plant after parts scheduled to arrive via long-haul ships failed to arrive.

UK grocery spending surged to an all-time high of nearly £11bn in November, industry data showed on Tuesday, as the second national lockdown came into effect and shoppers began stocking up for Christmas.

The pound strengthened on Tuesday after the UK agreed with the European Union to drop controversial clauses from the Internal Market Bill.

House prices grew 1.2% month-on-month across the UK in October, increasing the average price of a British home by roughly £3,000.

Retail footfall bounced back last week as Britons flocked to shopping centres and the High Street in the run up to Christmas as non-essential retail was reopened.

Retail sales came under pressure in November as the second national lockdown closed non-essential stores, industry research showed on Tuesday.

International events

US consumer confidence surprised to the upside last month as Democratic voters became "much more optimistic" following Joe Biden's win in the last presidential elections, the results of a closely-followed survey revealed.

The European Commission has drawn up contingency plans to ensure both transport links and fishing access can continue in the case of a no-deal Brexit.

France’s data protection agency, the CNIL, issued fines against Google and Amazon for dropping so-called tracking cookies without consent.

The ranks of Americans filing for jobless claims for the first time grew far more quickly than expected last week, as Covid-19 lockdown restrictions were reimposed.

The European Medical Agency will not approve the Russian and Chinese vaccines for Covid-19 until Beijing and Moscow seek authorisation.

The bull market in European equities has legs, Barclays said in a strategy note on Tuesday, as it argued it will extend into 2021 and that investors should use potential dips as buying opportunities.

German investor sentiment improved in December amid optimism over a Covid-19 vaccine, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.

German factory output rose faster than expected in October as booming car sales fuelled growth in Europe's biggest manufacturing sector.

Chinese exports have surged following strong global demand for pandemic-related products, official customs data showed on Monday.

Washington is looking to impose further sanctions on a number of Chinese officials over the political crackdown in Hong Kong, it was reported on Monday.