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GSK announced on Thursday that its subsidiary ViiV Healthcare has received approval from China’s National Medical Products Administration for ‘Vocabria’, or cabotegravir, injection in combination with Janssen’s ‘Rekambys’ for treating HIV-1 in adults. The approval followed the prior authorisation of cabotegravir injection and tablets in China in July. It said the combination therapy was an alternative to daily oral medication for people with HIV-1 and addressed potential adherence challenges, given that more than one million people were living with HIV in China as of October 2020.
Paper packaging specialist DS Smith reiterated its guidance for first half operating profits thanks to a sequential improvement in corrugated box volume performance and better-than-expected pricing. Earnings before interest, taxes, and amortisation were seen at roughly £360m over the six months to 31 October. Corrugated box volumes remained below their year earlier level and the macro-economic environment was described as "weak". However, the company anticipated volume performance would improve in the back half of the financial year and said that it was well positioned for the remainder of the year.
Newspaper round-up
The former NatWest (LON:NWG) chief executive breached data protection laws when she spoke to a BBC journalist about the planned closure of Nigel Farage’s bank accounts, the UK’s information watchdog has ruled. An Information Commissioner’s Office (ICO) report seen by the Guardian said that Alison Rose broke rules on two counts: first by revealing that Farage had a banking relationship with its private bank, Coutts; and secondly by providing “misleading information” that led the BBC to believe the bank was closing his accounts for purely commercial reasons, linked to his wealth. – Guardian
Shell’s new chief executive is poised to cut hundreds of jobs from the oil giant’s low-carbon division as part a plan to boost the company’s profits. Wael Sawan plans to shrink the number of staff working on low-carbon solutions by around 200 next year, after vowing to shift Shell’s focus towards high-profit oil projects and expanding its gas business when he became chief executive in January. – Guardian
Sovereign wealth funds and local councils are among a group of investors plotting a £100m lawsuit against Boohoo (LON:BOOH) after allegations of modern slavery wiped more than £1bn from the company’s value. The fast fashion retailer is being targeted by City lawyers seeking compensation for shareholders who suffered losses after allegations of forced labour in Boohoo’s factories came to light in 2020. – Telegraph
Qatar has backed a £400m refinancing of struggling Canary Wharf in its first significant UK deal since the terror attacks on Israel sparked criticism of its links to Hamas. Canary Wharf Group (CWG) secured hundreds of millions of pounds in extra financing from Qatar’s sovereign wealth fund and its Canadian co-owner on Wednesday as the landlord struggles with high vacancy rates. – Telegraph
Sam Bankman-Fried plans to testify at his criminal fraud trial after his closest associates blamed the former billionaire for the collapse last November of his FTX cryptocurrency exchange. In a telephone conference on Wednesday with Lewis Kaplan, the judge who is overseeing the case in a federal court in Manhattan, Mark Cohen, Bankman-Fried’s lawyer, said the defence planned to call three other witnesses to testify briefly after prosecutors finished presenting their case. “Our client is also going to be testifying,” he said. – The Times
US close
US equity markets dropped on Wednesday, though the Nasdaq bore the brunt of the selling pressure after the tech-heavy index was hammered by disappointing results from Google parent Alphabet (NASDAQ:GOOGL).
The Nasdaq was down 2.4% by the close, while the S&P 500 fell 1.4% – with both indices dropping to levels not seen since late-May.
However, the Dow Jones Industrial Average held up well, slipping just 0.3%.
The DJIA is relatively immune to the tech sector due to its heavy exposure to the consumer, retail and finance sectors.
With economic data on the quiet side on Wednesday – ahead of key GDP and inflation figures later in the week – investors were firmly focusing on earnings.