Hasta la vista
Change of rules
Travel companies were dealt a heavy blow this week when the UK Foreign Office advised against all non-essential travel to Spain and the government imposed a two-week quarantine on anyone returning from the country. Shares in British Airways owner IAG (IAG), Ryanair (RYA), easyJet (EZJ) and Jet2 owner Dart Group (DTG) were among those hit by the news. Spain had been on the list of countries that UK travellers could visit for holidays without needing to isolate afterwards – but the guidance has changed after an increase in coronavirus cases.
Unemployment warning
New study
A new report from the National Institute of Economic and Social Research (NIESR) has warned that the closure of the UK government’s furlough scheme in October could take unemployment close to 10 per cent by the end of this year. The research finds that unemployment would stay lower if the furlough scheme were continued for longer. Garry Young, NIESR deputy director, commented that “the planned closure of the furlough seems to be a mistake, motivated by an understandable desire to limit spending”. He added that there is a risk it could be ending “prematurely”.
US vaccine hope
Shares climbed
Shares in Moderna (US:MRNA) climbed by as much as a tenth on 28 July, after the US biotech group announced the start of late-stage (phase three) trials for its messenger-RNA (MRNA)-based vaccine candidate against Covid-19. The placebo-controlled study is expected to include roughly 30,000 participants in the US. Moderna said that it remained on track to deliver around 50m doses per year of its vaccine, if it proves successful, and possibly up to 1bn doses per year. Pharma giant Pfizer (US:PFE) and partner BioNTech have also started their own phase two/three vaccine trial.
Novacyt: R&D update
New tests
Diagnostics business Novacyt (NCYT) – whose shares have rocketed during the pandemic – has launched a new mobile testing system for Covid-19 and a new saliva sampling type. It is also developing a respiratory testing panel to diagnose and distinguish between influenza and Covid-19, with a launch expected in September. At the same time, the group has revealed that it is working with a partner on an antibody test to detect past infection with the coronavirus. Earlier in July, Novacyt said that first-half revenues had climbed by 900 per cent to €72.4m.
Vodafone: towers float
Frankfurt listing
Vodafone (VOD) plans to float its European towers business in early 2021, choosing Frankfurt as the IPO venue over London. ‘Vantage Towers’ has 68,000 towers across nine markets. It is the first or second-largest player in each of those locations. Vodafone first announced its intention to split out its tower infrastructure operations just over a year ago, explaining at the time that such a move would enable it to reduce group debt. It plans to maintain a majority stake in Vantage towers post-listing.
Risers and fallers (%)
Indivior | +62.8 |
Amigo | +45.1 |
Petropavlovsk | +33.2 |
Kainos | +27.9 |
Carr's | +27.4 |
Cineworld | -24 |
Fuller, Smith & Turner | -21.6 |
Melrose Industries | -19.2 |
Hyve | -17 |
Premier Oil | -16.9 |
Week to 18 July 2020
Unilever scrubs up
Cleanliness drive
Unilever’s (ULVR) diversified business model came to the fore during the first half. Increases in at-home eating, drinking and hand washing helped to cushion the blow of lockdown restrictions – meaning that underlying sales edged down by just 0.3 per cent in the second quarter; better than consensus expectations for a 4.3 per cent contraction. Group underlying revenues for the six months to June were broadly static, reflecting a 2.4 per cent improvement in developed markets and a 1.9 per cent decline in emerging markets.
Amazon Fresh
Free delivery
Amazon (US:AMZN) Prime members in the UK are now eligible for free grocery delivery from the tech behemoth’s ‘Amazon Fresh’ platform. Prime members in around 300 postcodes can “do their weekly shop”, with products ranging from meat, seafood, snacks and household essentials. Consumers can choose from one- and two-hour delivery windows. In the south-east, Amazon Fresh is faster, offering users same-day delivery. Competition is heating up for Britain’s conventional supermarkets, as well as grocer/tech hybrid Ocado (OCDO).
