Tech tumble
Follows rally
After a major rally, and a significant rise in August, US tech stocks have pulled back since the start of September – with the tech-heavy Nasdaq Composite index slipping by roughly 9 per cent between the first and eighth days of the month. Shares in Tesla (US:TSLA) alone slumped by more than a fifth on Tuesday. This comes amid suggestions that Japan’s SoftBank spurred the aforementioned tech rally on prior to its reversal. Citing people familiar with the matter, a Financial Times report depicted SoftBank as the “Nasdaq whale” that had purchased billions of dollars’ worth of US stock derivatives.
Royal Mail in parcel shift
Higher costs
Reflecting Covid-19-related expenses and the delivery of fewer letters and more parcels, costs in Royal Mail’s (RMG) ‘UK parcels, international and letters’ (UKPIL) business increased by £160m over the five months to 31 August. UKPIL is expected to make a material loss this year and the group says it “will not become profitable without substantial business change.” Looking to move away from sorting by hand, Royal Mail remains in talks with unions over adapting its business.
Amryt Pharma soars
Positive trial results
Shares in Aim-quoted Amryt Pharma (AMYT) soared by more than a half on Wednesday, taking its market value to around £400m, after it announced positive top line results from a “pivotal” phase-three (late-stage) drug trial. The product in question, ‘Filsuvez’, is being tested as a treatment for dystrophic and junctional Epidermolysis Bullosa or ‘EB’ – a rare, chronic genetic skin disorder affecting infants, children and adults. There are currently no approved treatments. Amryt said the primary endpoint of its trial was met. Its study was the largest phase-three trial ever conducted in EB.
Uber going green
Electric vehicle goal
Carbon emissions fell by 17 per cent year-on-year in April, as much of the world stopped amid ‘stay at home’ orders. But the reduction was just 5 per cent in June. That’s according to an update this week from Uber’s (US:UBER) chief executive Dara Khosrowshahi, who noted that emissions will revert to normal soon. So, Mr Khosrowshahi announced in the same breath that Uber is committing to becoming a “fully zero-emission platform”. It seeks to have all rides take place in electric vehicles (EVs) in the US, Canada and European cities by 2030.
£12bn for affordable homes
Five-year programme
UK housing secretary Robert Jenrick has launched a £12bn affordable housing programme, noting that this marks the highest single funding commitment in this arena in a decade. The project will be delivered over five years from 2021 to 2026, and will provide up to 180,000 new homes across the country – “should economic conditions allow”. The government said that a new shared ownership model is also intended to help more people access the property ladder, by significantly reducing the minimum initial share.
Risers and fallers (%)
| Hammerson | +25.4 |
| Royal Mail | +24.9 |
| Melrose Industries | +24.6 |
| DS Smith | +16.7 |
| Future | +16.4 |
| BATM Advanced Comms | -13.3 |
| Saga | -11.9 |
| Dixons Carphone | -11.5 |
| Amigo | -10.5 |
| Renewi | -10.2 |
Week to 9 September 2020
Synairgen: positive COPD data
Interferon beta
Biotech company Synairgen (SNG) has unveiled positive data from the interim analysis of a drug trial in patients with Chronic Obstructive Pulmonary Disease (COPD). An exploratory phase-two clinical trial found that ‘SNG001’ – an inhaled formulation of ‘interferon beta’ – was well-tolerated in an elderly population, and significantly enhanced the lungs’ antiviral response. COPD flare-ups are England’s second-most common cause of unplanned hospital admissions. The COPD programme remains paused due to the pandemic, but management said it was “pleased to provide further evidence that supports SNG001 as a potential treatment for COVID-19”.
Primark in footfall recovery
ABF update
Associated British Foods’ (ABF) fourth-quarter trading exceeded its expectations, led by the group’s smaller food businesses. Amid higher grocery retail sales volumes, improved EU sugar prices and increased demand for yeast and bakery products, ABF is guiding to a “very strong increase” in the aggregate adjusted operating profit of these businesses for the year ending 12 September. ABF also owns discount fashion chain Primark, which accounted for around two-thirds of adjusted operating profit last year. Sales here have been “reassuring and encouraging” since stores reopened, benefitting from a recovery in footfall.
