Here are some of the top business, market, and economic stories you should be watching today in the UK, Europe, and around the world.
AstraZeneca shares plummet on Alexion deal
AstraZeneca (AZN) shares fell by as much as 6{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} on Monday, despite the company promising double-digit revenue growth after unveiling a $39bn (£29.1bn) takeover deal.
AstraZeneca and Alexion (ALXN) confirmed on Saturday that their boards had approved a takeover of the latter, due to complete in the third quarter of the year. Alexion is a US pharmaceutical firm, specialising in therapies for people with rare disorders.
The deal represents a 45{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} premium on Alexion’s share price on Friday. Alexion shareholders will have a 15{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} stake in the combined company after completion, with its stocks soaring by around a third in pre-market trading in the US.
AstraZeneca stocks recovered only slightly to trade 4.8{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} lower on the London Stock Exchange in mid-morning trading.
“Investors appear nervous at the high price of this acquisition, the biggest in its history…Adding this new range of drugs to its portfolio has potential to significantly increase revenues, but it is still an expensive gamble,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
Leading European and US stocks rose as markets opened on Monday, with the latest Brexit and vaccine developments boosting investors’ hopes.
UK and European Union leaders announced they would continue to negotiate despite another missed deadline in post-Brexit trade talks.
European Commission president Ursula von der Leyen and UK prime minister Boris Johnson reported a “constructive” phone call on Sunday, marking an improvement in tone on updates earlier last week.
Most indices were trading higher on Monday morning in Europe. Britain’s mid-cap FTSE 250 (^FTMC), Germany’s DAX (^GDAXI) and France’s CAC 40 (^FCHI) were all 1{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} higher. The FTSE 100 (^FTSE) rose 0.3{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}.
“Markets reacted positively to news that the talks have not collapsed completely. Despite the pessimism surrounding the negotiations, markets still see hope for a last-minute deal between the EU and the UK,” said Milan Cutkovic, a market analyst at Axi.
READ MORE: Pound pops as Brexit talks slip past latest deadline
All three leading indices also looked set for gains on Wall Street after the Pfizer (PFE) and BioNTech (BNTX) vaccine was approved by regulators on Friday. Vaccination programmes are likely to begin early this week.
Futures on the S&P 500 (ES=F) were up 0.5{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} as European markets opened, while Dow Jones Industrial Average futures (YM=F) gained 0.6{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} and Nasdaq (NQ=F) futures were up just below 0.5{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}.
Stocks had risen overnight in China, as finance minister Liu Kun said the government would ramp up fiscal stimulus. The Shanghai Composite (000001.SS) rose 0.7{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}.
Hong Kong’s Hang Seng (^HSI) lost 0.3{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}, while Japan’s Nikkei (^N225) gained 0.3{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49}.
Consumer goods giant Unilever (ULVR.L) is to give investors a vote on its ambitious climate plan in what the company said is a world first.
Unilever — which owns everything from Dove soap to Hellman’s mayonnaise — said on Monday it would give shareholders an advisory vote on its climate plan at next May’s annual general meeting.
“Climate change is the most pressing issue of our time and we are determined to play a leadership role in accelerating the transition to a zero carbon economy,” chief executive Alan Jope said in a statement.
Unilever aims to reach net zero emissions from its own operations by 2030 and plans to reduce the average carbon footprint of its products by 50{09c3c849cf64d23af04bfef51e68a1f749678453f0f72e4bb3c75fcb14e04d49} over the same timescale.
Watch: What does a Joe Biden presidency mean for the global economy?
