Coronavirus drug launched
Gilead Science’s antiviral drug Remdesivir will be made available to some NHS patients, after a study showed that it could shorten recovery times. The drug, which has been used to treat Ebola, will be given to a selected number of patients that have been hospitalised under the early access to medicines scheme. Treatment will be limited to those showing the greatest likelihood of benefit, the Department of Health said. However, it is unclear how many patients will have access to the drug, which is being donated as part of the pharma group’s aim to provide 1.5m vials free-of-charge globally.
Ousting frustrated
easyJet management remains
easyJet (EZJ) founder Sir Stelios Haji-Ioannou was defeated in his bid to remove the airline’s top executives in a row over a £4.5bn airplane order with Airbus. Chairman John Barton, chief executive officer Johan Lundgren, chief financial officer Andrew Findlay and director Andreas Bierwirth all retained their positions. Mr Findlay has since announced plans to leave the airline in May next year. Mr Haji-Ioannou has previously described the contract as “the largest single threat to the solvency of the company”. Last month, easyJet said that it had reached an agreement with Airbus to defer the delivery of 24 aircraft.
Lufthansa rescued
Bailout agreed
The German government has agreed a €9bn (£8.1bn) bailout of national airline Lufthansa, which will bring its stake in the national carrier to 20 per cent. The aid is subject to approval by the European Union and shareholders, but will include €3bn in loans from state-owned development bank KfW and will prevent the airline from paying dividends and constrain executive pay. Germany’s Economic Stabilisation Fund will buy shares worth €300m, priced at €2.56 each, and the government will appoint two members to sit on the airline’s supervisory board.
St James's retains funds
But outlook uncertain
St James’s Place (STJ) provided a further sign this week that long-term retail investors remained relatively calm during recent market turbulence. In an update for the four months to April, the wealth manager said the retention rate for its funds under management had increased to 96 per cent, while both gross and net inflows increased year on year. However, chief executive Andrew Croft flagged the uncertain “short- to medium-term impact” of government measures and economic volatility.
Energy sucked
Oil demand bites
Investment in the energy sector will suffer its largest ever annual fall this year, according to the International Energy Agency, as the finances of major producing countries and oil and gas groups take a hit from the collapse in supply. However, spending on every corner of the sector is predicted to plunge by an aggregate $400bn (£325bn), the industry body said, a 20 per cent reduction on 2019 levels and down on the 2 per cent increase that had been forecast pre-pandemic. Oil and gas investment is expected to take the biggest hit, down by a third this year.
Retail go-ahead
Stores to open
UK stocks were buoyed by the news that some non-essential retail stores in England would be allowed to reopen from 1 June, once they have completed a risk assessment showing they can implement safe distancing measures. Car showrooms and outdoor markets can reopen from the start of the month, while the remainder of stores can resume trading from 15 June. Meanwhile, despite supermarkets continuing trading throughout lockdown, new research has shown that online grocery shopping has almost doubled its share of UK grocery spend due to the impact of the lockdown, with 7.9m UK households placing an online order during the four weeks to 16 May, according to Nielsen.
Warner IPO
Capital markets test
Warner Music plans to push ahead with an IPO in the hope of raising $1.8bn via a listing of its shares on the Nasdaq exchange. The record label put plans for the deal on ice in February as the coronavirus pandemic cast capital markets into turmoil. Warner said existing shareholders would sell 70m shares – a 14 per cent stake – priced at between $23 and $26 each, although owner Len Blavatnik will retain majority voting power via his investment company Access Industries.
The number of inquiries being made on properties rose 88 per cent during the week after the English housing market reopened on 13 May, according to data from property portal Zoopla.
Demand was higher in all English cities than it was in February (see chart), except Birmingham and London,where inquiries were 5 per cent and 12 per cent lower, respectively.
New sales agreed, which were running at 10 per cent of normal levels over the lockdown, have edged up only 12 per cent across the country in the week since restrictions were lifted.
