Proactive Investors - 7.53am: AstraZeneca (NASDAQ:AZN) snaps up Neogene in $320mln deal
AstraZeneca PLC (AZN) has agreed to buy biotechnology group Neogene for up to $320mln, as it looks to accelerate its ambition in oncology cell therapy.
Neogene is a clinical-stage company pioneering the discovery, development and manufacturing of next-generation T-cell receptor therapies (TCR-Ts) that offer a novel cell therapy approach for targeting cancer.
The purchase prices includes an initial payment of $200mln upon closing, and a further up to $120mln in both contingent milestones-based and non-contingent consideration.
7.46am: easyJet (LON:EZJ) upbeat for 2023 as it reports hefty reduction in losses
easyJet PLC said bookings for next year were looking positive as it reported a hefty reduction in annual losses of £178mln from £1,136mln last time.
Total revenue increased by 296% to £5,769mln from £1,458mln last year predominantly due to the increase in capacity flown and as ancillary products continue to deliver incremental revenue.
The budget airline operator said EBITDAR was a record £674mln in quarter four, and up from £82mln last year, while the operational performance was improved compared to 2019 with fewer on day cancellations.
Looking head, easyJet forecast quarter one revenue per passenger seat (RPS) to be up more than 20% year-on-year with load factor growth of more than 10 percentage points in the period.
For the first half, capacity is forecast to be up 25% at around 38mln seats and this is expected to increase further in the second half of the year to 56mln seats. By quarter four capacity is seen at around pre-pandemic levels.
Johan Lundgren, easyJet chief executive said: “The summer saw easyJet achieve its highest ever earnings for a single quarter with headline EBITDAR of £674mln, ancillaries up by 59% on FY19 and easyJet holidays well on its way to its £100mln target.”
"easyJet does well in tough times.”
“Consumers will protect their holidays but look for value and across its primary airport network, easyJet will be the beneficiary as customers vote with their wallets.”
7.30am: Euro hawks square up to US dollar hawks, Sterling makes early morning gains
Investors are underestimating just how aggressive the Federal Reserve will be in the new year.
That’s according to Federal Open Market Committee (FOMC) member James Bullard, who yesterday stated that the base rate needs to rise as high as 5.25% in order to be "sufficiently restrictive" on inflation.
FOMC members John Williams and Thomas Barkin made similar comments on Monday, although the latter stated his preference for slowing the pace of rate hikes.
Those hawkish comments offered a boost to the US Dollar Index (DXY), which closed yesterday’s session at 106,29, a full 1.3% higher from intraday lows.
This morning’s Asia session has seen the greenback retract though, with DXY heading back to 106.1 and the GBP/USB pair gaining 30 pips to 1.198.
GBP/USD cuts back on hawkish Fed comments – tradingview.com
After cutting back 1.5% from yesterday’s intraday highs, the EUR/USD pair opened this morning at 1.034 and has since inched upwards to 1.035.
It should be noted that European Central Bank president Christine Lagarde also made some hawkish comments to the European Parliament yesterday, even if today’s consumer price index readings from Spain and Germany are expected to see a reduction in prices.
Today’s mortgage approvals data should shed some light on the UK’s struggling housing market.
FTSE 100 expected to open slightly higher this morning despite heavy falls in the US as the Hang Seng rebounded sharply after yesterday’s falls as China reported its first fall in Covid cases since 19 November.
Spread betting companies are calling the lead index up by around 18 points.
US markets endured a tough day with all three major indices closing sharply lower as the fall-out from the Covid protests in China unsettled sentiment.
At the close the Dow Jones Industrial Average slumped 497 points, or 1.45%, to 33.850, the S&P 500 dropped 62 points, or 1.54%, to 3,964 and the Nasdaq Composite fell 177 points, or 1.58%, to 11,050.
Back to London and investors will be eyeing further data on the strength of the housing markets with today’s mortgage approval numbers predicted to fall to 60,000, their lowest levels since June 2020.
Results are also expected from easyJet PLC, Greencore Group PLC (LON:GNC), Marstons PLC, Redrow PLC (LON:RDW),and Treatt PLC amongst others.