Maitland/AMO Morning Monitor – Wednesday 5 January 2022

5th January 2022

In the news

  • Travel and leisure stocks surged yesterday as investors grew confident that the economic threat of the Omicron variant is waning despite record cases.
  • Prime Minister Boris Johnson has ruled out a new lockdown as he said England could "ride out" Omicron "without shutting down our country once again".
  • Chancellor Rishi Sunak has warned there is a limit to how much help the government could offer to offset energy prices and support households.
  • The US buyout firm TPG targets a $9.3bn valuation IPO, tapping into a wave of investor interest in private equity.
  • Ford has almost doubled the production target for the F-150 Lightning, the electric version of its bestselling pick-up truck, to 150,000 a year.

Politics today

  • The House of Commons sits from 2.30pm with Wales questions, the first PMQs of the year and a statement from the Prime Minister on Covid-19.
  • Conservative MP Richard Holden has a 10 minute rule bill on extending automatic pension enrolment to 18 year olds, following a report from think tank Onward suggesting it would add £2.77tln to pension savings.

Stock market moves

  • In the US, the S&P 500 and the NASDAQ 100 both closed down, at 0.06% and 1.35% respectively.
  • In Asia, both Hong Kong’s Hang Seng index and China’s Shanghai Composite index dropped by 1.72% and 1.02% respectively, whilst Japan’s Topix index is up by 0.45%.
  • In Europe, the FTSE trading up 1.6%.

Corporate announcements

* Maitland Client

AstraZeneca PLC Transfer of global rights for Eklira and Duaklir to Covis Pharma completed
  • AstraZeneca has completed the transfer of its global rights to Eklira and Duaklir to Covis Pharma Group.
  • AstraZeneca received a payment of $270m.
  • AstraZeneca will also receive payments in respect of certain ongoing development costs related to the medicines.
  • The income from the payment will be fully offset by a charge for derecognition of the associated intangible asset, therefore no Other Operating Income will be recognised in AstraZeneca’s financial statements.
Playtech PLC Statement re Adjournment of Shareholder Meetings
  • The Court and General Meetings relating to the offer for Playtech by Aristocrat (UK) Holdings Limited has been adjourned to 2 February 2022.
  • Playtech and JKO Play have requested the panel set a revised deadline, aligned for shareholder meetings, by which JKO must clarify its intentions in relation to Playtech.
  • An updated timetable has also been shared.
  • This announcement has been made without the prior consent of JKO or Aristocrat.
Airtel Africa PLC First Closing of Tower Sale in Tanzania
  • Airtel Africa announces the first closing of the transaction to sell its telecommunications tower assets in Tanzania to a joint venture company owned by SBA Communications and Paradigm Infrastructure.
  • The gross consideration for the transaction will be $176.1m.
  • Airtel Africa’s subsidiary in Tanzania will continue to develop, maintain and operate its equipment on the towers under separate lease arrangements.
  • Approximately $159m of the proceeds for the transaction has now been paid with first closing.
Oxford Biomedica PLC Oxford Biomedica Agreement with Cabaletta Bio
  • Oxford Biomedica announces that it has signed a new License and Supply Agreement with Cabaletta Bio.
  • The LSA grants Cabaletta Bio a non-exclusive license to Oxford Biomedica’s LentiVector platform for its Cabaletta Bio’s DSG3-CAART programme and puts in place a multi-year supply agreement.
  • The LSA also allows for the parties to initiate additional projects in the future. 
  • John Dawson, CEO of Oxford Biomedica, said: “Cabaletta Bio is one of the leading companies developing engineered T cells designed to treat patients with autoimmune diseases. We are delighted to announce this new collaboration which strengthens our portfolio of relationships with leaders in the gene-modified cell therapy field.”