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(Alliance News) - The following is a summary of top news stories Monday.
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COMPANIES
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JD Sports and Footasylum have been fined nearly GBP4.7 million for collective breaches of an interim order issued by the UK's Competition & Markets Authority during an in-depth phase two merger investigation. JD Sports purchased Footasylum back in March 2019 for GBP90.1 million, and has since been the subject of CMA investigations and orders related to the deal. In November last year, the CMA ordered JD Sports to sell the footwear seller to address concerns about competition and to protect consumers. The CMA imposed the interim order in May 2021 to stop the companies from "further integration" and ensure they remained competitors while it probed the merger. The order required the CMA to be immediately notified if any information was exchanged. The CMA alleges two meetings took place in July and August of 2021, where the two chief executive officers, Barry Brown and Peter Cowgill, exchanged commercially sensitive information - on topics such as contracts, planned store closures, stock issues and financial performance - and did not notify the CMA.
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SMC increased its full-year net sales guidance following a strong third quarter. The Tokyo-based pneumatic control device manufacturer reported net sales of JPY542.44 billion - around USD4.71 billion - for the nine months ended December 31. This represented a 38% increase on the same quarter the previous year, in which net sales totalled JPY391.89 billion. SMC's net income per share rose to JPY2,103.96 from JPY1,164.93 over the period. The company's financial year ends March 31. Operating profit was up 65% to JPY175.20 billion from JPY105.87 billion while pretax profit was up further, rising 78% to JPY195.60 billion from JPY109.92 billion. SMC explained that demand for automatic control equipment within the semi-conductor industry had remained high in both China and Japan. It continued that, despite shortages, the industry had performed well, particularly with the expansion of electric vehicles and secondary battery production.
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Tokio Marine Holdings upped its full-year net income forecast following strong results which saw net income more than triple. The Tokyo-based insurance company reported net income of JPY374.12 billion, around GBP2.33 billion, in the nine months ended December 31. This more than tripled the previous year's nine month figure of JPY111.62 billion. Per share, the company's net income rose to JPY543.99 from JPY161.59 in the nine months to December 31. Tokio Marine's ordinary income totalled JPY4.372 trillion, up 6.7% from JPY4.096 trillion the previous year. Underwriting income was JPY3.716 trillion and investment income was JPY55.91 billion. The company's operating profit nearly tripled to JPY499.12 billion from JPY182.42 billion.
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Exxon Mobil on Friday said it has kicked off production at an offshore asset in Guyana. Liza Phase 2, a second asset in the Stabroek Block development, brings with it 120,000 barrels per day of capacity to the Liza Unity floating, production, storage and offloading vessel. The wider Stabroek Block has a recoverable resource base of more than 10 billion oil equivalent barrels. Exxon added: "The current resource has the potential to support up to 10 projects. ExxonMobil anticipates that four FPSOs with a capacity of more than 800,000 barrels per day will be in operation on the Stabroek Block by year-end 2025. Payara, the third project in the Stabroek Block, is expected to produce approximately 220,000 barrels of oil per day using the Prosperity FPSO vessel, which is currently under construction. The field development plan and application for environmental authorization for the Yellowtail project, the fourth project in the block, have been submitted for government and regulatory approval."
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China on Saturday said it had given "conditional" approval for Pfizer's Covid-19 drug Paxlovid to treat adults with mild to moderate illness and a high risk of developing severe disease. The drug has so far been authorised in about 40 countries including the US and Israel, while the EU has permitted member states to use it ahead of formal approval as an emergency measure against the rapidly spreading Omicron variant. Unlike Covid-19 vaccines, Pfizer says that preliminary studies show that Paxlovid does not target the ever-evolving spike protein the coronavirus uses to invade cells, meaning it should theoretically be more variant-proof. China's National Medical Products Administration on Saturday said further research on the drug needed to be undertaken and submitted to the regulator. Beijing has not yet approved any foreign-made coronavirus vaccines.
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The World Health Organization said Friday that it had prequalified the tocilizumab arthritis treatment developed by Roche Holding for use in patients hospitalised with severe Covid-19, in a bid to increase access to the pricey drug. The monoclonal antibody, used in anti-inflammatory drugs, has been shown to reduce the risk of death and also hospitalisation time in certain patients suffering from severe Covid. WHO has, like the US and the EU, already recommended its use to treat severe Covid in hospital settings. But it remains in short supply and is very expensive a single dose reportedly goes for up to USD600 in lower-income countries, WHO said, adding though that its prequalification should help make it more accessible. The UN health agency said it had added three different compositions of the monoclonal antibody to its list of prequalified treatments for the pandemic disease, in a move aimed to spur more the production of more cheaper generic versions.
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MARKETS
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European stock markets dived at the start of the week as fears mounted over an imminent Russian invasion of Ukraine. Dragging London's FTSE 100 lower was steel maker Evraz, which largely operates in Russia, as shares tumbled 33%. Investors rushed to safe haven assets such as precious metal gold and the Japanese yen amid Monday's risk-off mood. "In our central scenario, we still think diplomatic efforts will eventually lead to a dialing down of tensions. This may take several months, during which the possibility of flare-ups like the one we are experiencing today remains elevated," said UBS.
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CAC 40: down 3.1% at 6,795.17
DAX 40: down 3.1% at 14,941.61
FTSE 100: down 1.9% at 7,515.50
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Hang Seng: closed down 1.4% at 24,556.57
Nikkei 225: closed down 2.2% at 27,079.59
S&P/ASX 200: closed up 0.4% at 7,243.90
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DJIA: called down 0.8%
S&P 500: called down 0.9%
Nasdaq Composite: called down 1.1%
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EUR: down at USD1.1317 (USD1.1406)
GBP: down at USD1.3525 (USD1.3601)
USD: down at JPY115.19 (JPY115.89)
GOLD: up at USD1,854.84 per ounce (USD1,834.21)
OIL (Brent): up at USD94.55 a barrel (USD93.16)
(currency and commodities changes since previous London equities close)
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ECONOMICS AND GENERAL
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Washington reaffirmed its warning Sunday that Russia could invade Ukraine at any moment and German Chancellor Olaf Scholz prepared to visit both countries in a bid to head off a crisis that Berlin said had reached a "critical" point. Kyiv also scrambled to keep its airspace open after KLM became the first major airline to suspend its operation because of the threats posed by Russian troops conducting military drills across Ukraine's frontiers. Western countries are winding down their diplomatic missions and urging their citizens to leave immediately after a frantic week of diplomacy failed to calm one of the most explosive standoffs since the Cold War. US President Joe Biden briefed Ukrainian leader Volodymyr Zelensky about an hour-long conversation with Russia's Vladimir Putin he had on Saturday that brought made no breakthrough. Zelensky's office said the Ukrainian leader had invited Biden to visit Kyiv "in the coming days" to show his moral support and deliver "a powerful signal" to Russia. Washington made no mention of an invitation in its readout of the 50-minute call. But US national security advisor Jake Sullivan issued a grim assessment that an invasion that could begin "any day now" would likely start with "a significant barrage of missiles and bomb attacks".
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UK Prime Minister Boris Johnson will join last-ditch diplomatic efforts to bring Russian President Vladimir Putin "back from the brink" of war in Ukraine as the crisis enters a "critical juncture". Downing Street conceded Moscow could be planning to invade "at any moment" but the prime minister will hold talks with world leaders before a trip to Europe during this week's "window of opportunity" for de-escalation. Johnson, who is receiving daily intelligence briefings from security chiefs, was understood to be working with allies to provide further defensive and economic support to Kyiv, with an announcement touted for the coming days. A Downing Street spokeswoman said: "The crisis on Ukraine's border has reached a critical juncture. All the information we have suggests Russia could be planning an invasion of Ukraine at any moment. This would have disastrous consequences for both Ukraine and Russia. A key juncture in western diplomatic efforts this week is German Chancellor Olaf Scholz's Moscow meeting with Putin on Tuesday.
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Finance ministers from the Group of Seven, or G7, nations said on Monday they are prepared to impose "massive" economic sanctions on Russia should it attack Ukraine. They called the Russian build-up of forces on Ukraine's borders "a cause for grave concern" and that should a military invasion proceed as the West fears there will be a rapid impact on Russia. "We reiterate that in particular any further military aggression by Russia against Ukraine will be met with a swift, coordinated and forceful response," a joint statement said. "We are prepared to collectively impose economic and financial sanctions which will have massive and immediate consequences on the Russian economy," it continued.
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UK Prime Minister Johnson has received a questionnaire from police investigating allegations of lockdown-breaching parties in Downing Street. No 10 confirmed on Friday evening that the prime minister had received the legal form from Metropolitan Police officers, and said he will "respond as required". The move means Johnson will have to provide a credible reason as to why he was at events held during coronavirus restrictions or face a fine. A No 10 spokeswoman said: "We can confirm the prime minister has received a questionnaire from the Metropolitan Police. He will respond as required."
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A major US-Canada border crossing reopened late Sunday almost a week after it was forced shut by truck driver-led protests against coronavirus restrictions, prompting police to quell the demonstration with a series of arrests. The blockading of the Ambassador Bridge, which handles an estimated 25% of trade between the two countries, had disrupted business in the world's largest economy and forced automakers in both the US and Canada to halt or scale back production. The demonstrations, which have also paralyzed the Canadian capital Ottawa, have sparked similar movements in France, the Netherlands, Switzerland, Australia and New Zealand. Some US truckers are considering a protest for March. "The Ambassador Bridge is now fully open, once again allowing the free flow of commerce between the Canadian and US economies," the Detroit International Bridge Company said in a statement. In a tweet, Canadian Border Services confirmed the reopening but said "non-essential travel is not advised."
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Japan is considering easing its stringent border controls amid growing criticism that the measures are hurting the country's economy and international profile. Prime Minister Fumio Kishida confirmed he was looking at border arrangements, which have banned most foreign entrants including students and business travellers, although he did not provide a timeline for change or any other details. Kishida said he will make a decision based on a scientific assessment of the Omicron variant, infection levels in and outside Japan and quarantine measures in other countries. Currently, most of Japan is under virus-related restrictions, but infections have shown little signs of slowing. Nationwide, Japan reported nearly 100,000 new cases in the latest 24-hour period, including 18,660 in Tokyo.
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Swiss producer price inflation accelerated in January, though at a slower pace than expected, figures on Monday showed. According to the Federal Statistics Office, producer prices advanced 5.4% year-on-year in January, picking up speed from a 5.1% hike in December. January's producer price inflation figure was slightly cooler than expected, with FXStreet cited consensus predicting a 5.6% increase. On a monthly basis, producer prices increased 0.6% in January, following a 0.1% fall in December. January's monthly rise topped expectations of a 0.1% increase. "In particular, petroleum and natural gas saw higher prices," FSO added. "Irradiation, electromedical and electrotherapeutic equipment also became more expensive, as did metal products, electricity as well as wiring and wiring devices. In contrast, lower prices were seen for medical and dental instruments and supplies."
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By Lucy Heming; lucyheming@alliancenews.com
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