A hypothetical merger would result in the world’s largest Health-Care group. In dollar terms, AstraZeneca’s capitalisation is 141 bn$, with the stock price appreciating 41% in the last twelve months. Meanwhile, Gilead’s capitalisation stands at 96 bn$ and its share price has gained 19% in the same period. Everything points to Gilead preferring to develop very promising drugs on its own, in fields such as HIV or COVID-19.
OPEC+ agreed over the weekend to extend the cut in oil production until July 31. Mexico has not signed up to the new agreement. The return of 2 million barrels of crude oil to the daily supply will be postponed until that date. In addition, it was determined that Iraq and Nigeria, which have so far failed to comply with the agreed production cuts, will carry out an additional reduction in July.
Iberdrola has closed a deal to acquire a 165-megawatt onshore wind energy development in Scotland, involving an investment of over £150 million (about EUR 170 million). Meanwhile, through its US subsidiary Avangrid, Iberdrola has succeeded in unlocking its US-Canada interconnection project in which it plans to invest more than €1 billion.
Pablo Pardo (Washington) | The decision to restart the economic activity will lead to a further increase in deaths, although health authorities around the world hope that it will not lead anywhere near the collapse of health systems, as happened in March and April. But when you say, “lives for money”, you are, relatively speaking, right. Maintaining a daily life that looks even slightly normal will make the death toll rise. It is the price to pay for avoiding an economic depression.
Technology plays a fundamental role in the new environment of “social distancing” and teleworking. And from the “day after” there will be cultural changes that will further enhance its development and make its value even more visible. So from an investor point of view, companies such as Netflix or Amazon, in particular, and the US technology sector in general, could act as a safe haven in the short term and emerge strengthened from this crisis.
J.P.Marín Arrese | The Bank of England will provide direct cash to cover public expenses. Under the Ways and Means Facility, it already offers short-term liquidity to the Treasury. But, from now on, it will finance all budgetary commitments monetising the massive deficit the coronavirus crisis will bring about. Governor Andrew Bailey openly rejected this step a few days ago. Now, faced with the appalling evidence that a sharp increase in spending coupled with plummeting tax revenues will lead to substantial public imbalances, he has changed his mind.
Tina Tian / Ke Tiang (Fidelity) | While the coronavirus threatens to put a dent in China’s overall growth, a boom has appeared in pockets of the online economy. Consumption that has typically happened offline is fast adopting an online mode, with activity from grocery sales and tutoring to healthcare and house hunting.
Capital Madrid | For the first time in its history, Bankia reached the level of 20,000 million euros in assets managed in investment funds. This was done at the end of January, during which Bankia again led the market in terms of net income, according to data from Inverco.
The calm that preceded Boris Johnson’s electoral victory and the approval of Brexit is coming to an end and the gaps looking ahead raise the question “And now what?”. The UK PM faces the option of hooking up with existing EU standards, which will allow for greater trade; and regulatory autonomy, which gives the UK domestic control, but makes trade difficult. But the choice of one way or the other will have consequences.
JP Marin-Arrese │ Trump’s volatile mood is wreaking carnage on investors’ confidence. It is a fact that the White House tenant longs to trigger huge uncertainty, even panic, among investors. Yet, by brushing away any hope to strike a truce with China he has outdone himself.