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| Stocks under pressure after Apple downgrade shock – business live | Stocks under pressure after Apple downgrade shock – business live |
| (35 minutes later) | |
| Shares in AstraZeneca and GlaxoSmithKline have been buoyed by the $74bn Bristol-Myers Squibb deal with Celgene. | |
| Both were in negative territory earlier in the day, but AstraZeneca is now up by 1.6% and GSK has gained 0.9%. Look at the jump in AstraZeneca’s share price after the deal was announced at around midday GMT: | |
| Even with volatile stock markets and fears over global growth, it looks like Bristol-Myers Squibb has persuaded some investors that big pharma mergers and acquisitions are still possible. | |
| The first mega deal of the year has just landed in the US: pharma company Bristol-Myers Squibb plans to buy biotech firm Celgene for a cool $74bn. | The first mega deal of the year has just landed in the US: pharma company Bristol-Myers Squibb plans to buy biotech firm Celgene for a cool $74bn. |
| The $102.43 per Celgene cash and stock share offer will give Bristol-Myers 69% of the new business. It is expected to close in the third quarter of the year, generating cost synergies of $2.5bn by 2022. | The $102.43 per Celgene cash and stock share offer will give Bristol-Myers 69% of the new business. It is expected to close in the third quarter of the year, generating cost synergies of $2.5bn by 2022. |
| Shares in Celgene, which specialises in treatments for cancer and other severe, immune, inflammatory conditions, have surged by about 30% in pre-market trading. Bristol-Myers shares fell by 13%. | Shares in Celgene, which specialises in treatments for cancer and other severe, immune, inflammatory conditions, have surged by about 30% in pre-market trading. Bristol-Myers shares fell by 13%. |
| Giovanni Caforio, chairman and chief executive of Bristol-Myers Squibb (who cannot have had much of a holiday), said he was “impressed by what Celgene has accomplished for patients”. | Giovanni Caforio, chairman and chief executive of Bristol-Myers Squibb (who cannot have had much of a holiday), said he was “impressed by what Celgene has accomplished for patients”. |
| Just after midday, the European stock sell-off has accelerated in Germany and France. | Just after midday, the European stock sell-off has accelerated in Germany and France. |
| The Dax is down by 1.5% and the Cac 40 has lost 1.4%. | The Dax is down by 1.5% and the Cac 40 has lost 1.4%. |
| The FTSE 100 has lost 0.3%, and the mid-cap FTSE 250 has edged down by 0.15%. | The FTSE 100 has lost 0.3%, and the mid-cap FTSE 250 has edged down by 0.15%. |
| Next is the biggest riser of the blue chips, up by 4.6%, followed by Tesco, up by 2.8%. Fashion house Burberry has lost 5.5% and miner Evraz is down by 4.8%. | Next is the biggest riser of the blue chips, up by 4.6%, followed by Tesco, up by 2.8%. Fashion house Burberry has lost 5.5% and miner Evraz is down by 4.8%. |
| It’s a big anniversary today for the cryptocurrency world: bitcoin turns 10. | It’s a big anniversary today for the cryptocurrency world: bitcoin turns 10. |
| The original distributed ledger currency has offered much – although what it (or the underlying technology) has actually delivered so far is a different question. For many of the speculators who drove its price up above $19,000 in December 2017, the subsequent fall back to around $3,800 has hit them where it hurts. | The original distributed ledger currency has offered much – although what it (or the underlying technology) has actually delivered so far is a different question. For many of the speculators who drove its price up above $19,000 in December 2017, the subsequent fall back to around $3,800 has hit them where it hurts. |
| “The most impressive feature of bitcoin is that it is still there”, writes Tibor Fischer today to mark the birthday. | “The most impressive feature of bitcoin is that it is still there”, writes Tibor Fischer today to mark the birthday. |
| It has survived crash after crash and state hostility. It has truly been battle-tested in the harshest of conditions. | It has survived crash after crash and state hostility. It has truly been battle-tested in the harshest of conditions. |
| Yet it has also failed in one of its key aims, Tibor says. | Yet it has also failed in one of its key aims, Tibor says. |
| The identity-hiding creator of bitcoin, Satoshi Nakamoto, wanted it to be a currency. That looks unlikely. In the near future, you won’t be buying a pint of milk with it at the corner shop. | The identity-hiding creator of bitcoin, Satoshi Nakamoto, wanted it to be a currency. That looks unlikely. In the near future, you won’t be buying a pint of milk with it at the corner shop. |
| Read more here: | Read more here: |
| Happy 10th birthday, bitcoin. It’s amazing you still exist | Tibor Fischer | Happy 10th birthday, bitcoin. It’s amazing you still exist | Tibor Fischer |
| Amid the risk-off sentiment, gold is gaining, hitting six-month highs. | Amid the risk-off sentiment, gold is gaining, hitting six-month highs. |
| Gold spot prices reach a high earlier of $1,292.32, although they have now retreated to around $1,287.45, a gain of around 0.3% for the day. | Gold spot prices reach a high earlier of $1,292.32, although they have now retreated to around $1,287.45, a gain of around 0.3% for the day. |
| Dean Popplewell, a vice president at spreadbetter Oanda, said: | Dean Popplewell, a vice president at spreadbetter Oanda, said: |
| Gold prices scaled to a new six-month high earlier this morning as investor worries about a global economic slowdown, couple with equity markets volatility is supporting investor safe-haven buying, while a weaker dollar also offered some support. | Gold prices scaled to a new six-month high earlier this morning as investor worries about a global economic slowdown, couple with equity markets volatility is supporting investor safe-haven buying, while a weaker dollar also offered some support. |
| The price rise boosted London-listed gold miner Fresnillo, which was one of the best performers on the FTSE 100 approaching midday as shares rose by 2.1%. | The price rise boosted London-listed gold miner Fresnillo, which was one of the best performers on the FTSE 100 approaching midday as shares rose by 2.1%. |
| It looks like the Apple waves are going to rock US markets as well. | It looks like the Apple waves are going to rock US markets as well. |
| After a brutal start to the first trading session of the year the major American indices actually finished Wednesday up. But that was before Apple cut its revenue guidance on the back of weakness in the Chinese market. US companies will do well to escape pain later. | After a brutal start to the first trading session of the year the major American indices actually finished Wednesday up. But that was before Apple cut its revenue guidance on the back of weakness in the Chinese market. US companies will do well to escape pain later. |
| S&P 500 futures are down by 1.7% with just over three hours to go until the opening bell on Wall Street, but futures for the Nasdaq, on which Apple is listed, are down by 2.8%. Dow Jones industrial average futures are down by 1.6%. | S&P 500 futures are down by 1.7% with just over three hours to go until the opening bell on Wall Street, but futures for the Nasdaq, on which Apple is listed, are down by 2.8%. Dow Jones industrial average futures are down by 1.6%. |
| In pre-market trading Apple’s shares are down by 8.5%, after its first revenue downgrade in almost 12 years. | In pre-market trading Apple’s shares are down by 8.5%, after its first revenue downgrade in almost 12 years. |
| Mostly red across main European stock markets at late morning. | Mostly red across main European stock markets at late morning. |
| The FTSE 100 has weakened again, and is now down by 0.36%. | The FTSE 100 has weakened again, and is now down by 0.36%. |
| Germany’s Dax and France’s Cac 40 are both down by 1.2%, dragging down the Stoxx 600 by 0.9%. | Germany’s Dax and France’s Cac 40 are both down by 1.2%, dragging down the Stoxx 600 by 0.9%. |
| An “uninspiring end to 2018” for the British construction sector. | An “uninspiring end to 2018” for the British construction sector. |
| The UK construction PMI has not exactly made waves this morning, with barely a murmur on sterling markets – the pound’s 0.3% fall today was mainly a result of the market confusion around the flash crash last night. | The UK construction PMI has not exactly made waves this morning, with barely a murmur on sterling markets – the pound’s 0.3% fall today was mainly a result of the market confusion around the flash crash last night. |
| Construction industry activity is “lacklustre”, with limp new business numbers not pointing to any likely pick-up, said Howard Archer, chief economic adviser to the EY Item Club. | Construction industry activity is “lacklustre”, with limp new business numbers not pointing to any likely pick-up, said Howard Archer, chief economic adviser to the EY Item Club. |
| He added: | He added: |
| It is evident that there are significant headwinds currently hampering the construction sectors’ upside. | It is evident that there are significant headwinds currently hampering the construction sectors’ upside. |
| Some clients’ willingness to commit to major new projects (particularly in the commercial sector) is currently being limited by Brexit uncertainties and a subdued domestic economy. | Some clients’ willingness to commit to major new projects (particularly in the commercial sector) is currently being limited by Brexit uncertainties and a subdued domestic economy. |
| However, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, is more positive. He said: “The construction sector has had little to cheer recently, but 2019 should be a better year.” | However, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, is more positive. He said: “The construction sector has had little to cheer recently, but 2019 should be a better year.” |
| Optimism among builders about the outlook for activity over the next 12 months rose to its highest level since April. While many were concerned by Brexit, others anticipated winning work related to some big-ticket transport and energy infrastructure projects in 2019. | Optimism among builders about the outlook for activity over the next 12 months rose to its highest level since April. While many were concerned by Brexit, others anticipated winning work related to some big-ticket transport and energy infrastructure projects in 2019. |
| More detail on the Apple ructions, with European suppliers particularly in the spotlight, writes Mark Sweney. | More detail on the Apple ructions, with European suppliers particularly in the spotlight, writes Mark Sweney. |
| Apple's shock profit warning sends European shares sliding | Apple's shock profit warning sends European shares sliding |
| European suppliers to Apple have been hit hard, with the London-listed, Cardiff-based chip manufacturer IQE down 4%. The Newcastle-based software firm Sage fell 1.6%. | European suppliers to Apple have been hit hard, with the London-listed, Cardiff-based chip manufacturer IQE down 4%. The Newcastle-based software firm Sage fell 1.6%. |
| Across Europe, Dialog Semiconductor, STMicroelectronics and BE Semiconductor fell down 8%, 7% and 3% respectively. The Austrian chipmaker AMS had more than a fifth wiped off its stock value. | Across Europe, Dialog Semiconductor, STMicroelectronics and BE Semiconductor fell down 8%, 7% and 3% respectively. The Austrian chipmaker AMS had more than a fifth wiped off its stock value. |
| Chancellor Philip Hammond has appointed Dame Colette Bowe and Dame Jayne-Anne Gadhia as external members of one of the Bank of England’s top committees. | Chancellor Philip Hammond has appointed Dame Colette Bowe and Dame Jayne-Anne Gadhia as external members of one of the Bank of England’s top committees. |
| They will join the financial policy committee (FPC), led by governor Mark Carney, which is responsible for monitoring financial stability. | They will join the financial policy committee (FPC), led by governor Mark Carney, which is responsible for monitoring financial stability. |
| They will replace two men in the second half of the year. The Bank has faced persistent concerns about the gender balance in its top echelons. Of the 42 applicants to the jobs, 20 were women. Five women from 8 were invited to final-stage interviews. | They will replace two men in the second half of the year. The Bank has faced persistent concerns about the gender balance in its top echelons. Of the 42 applicants to the jobs, 20 were women. Five women from 8 were invited to final-stage interviews. |
| Bowe and Gadhia will start their new jobs shortly after the UK’s departure from the EU in March 2019. The Bank has braced itself for financial market turmoil if the UK leaves without a deal. | Bowe and Gadhia will start their new jobs shortly after the UK’s departure from the EU in March 2019. The Bank has braced itself for financial market turmoil if the UK leaves without a deal. |
| Bowe is the current chairman of the Banking Standards Board and has served as a board member of the UK Statistics Authority and the Department for Transport. Gadhia was the chief executive of Virgin Money from 2007 until last year’s takeover by CYBG, and is one of the City’s most prominent business figures. | Bowe is the current chairman of the Banking Standards Board and has served as a board member of the UK Statistics Authority and the Department for Transport. Gadhia was the chief executive of Virgin Money from 2007 until last year’s takeover by CYBG, and is one of the City’s most prominent business figures. |
| They will replace Richard Sharp and Martin Taylor, who are stepping down at the end of the first quarter of 2019 and the second quarter of 2019 respectively. | They will replace Richard Sharp and Martin Taylor, who are stepping down at the end of the first quarter of 2019 and the second quarter of 2019 respectively. |
| British builders are suffering from “an intense headwind” from – you guessed it – Brexit uncertainty, according to Tim Moore, economics associate director at IHS Markit. It was the weakest upturn in commercial activity for seven months. | British builders are suffering from “an intense headwind” from – you guessed it – Brexit uncertainty, according to Tim Moore, economics associate director at IHS Markit. It was the weakest upturn in commercial activity for seven months. |
| UK construction firms signalled a slowdown in housing and commercial activity growth during December, which more than offset a strong performance for civil engineering at the end of 2018. | UK construction firms signalled a slowdown in housing and commercial activity growth during December, which more than offset a strong performance for civil engineering at the end of 2018. |
| Despite the weaker housing market, housebuilding came in as the fastest growing sub-sector for builders during the course of 2018. | Despite the weaker housing market, housebuilding came in as the fastest growing sub-sector for builders during the course of 2018. |
| Yet “residential growth remains much softer than the two-and-a-half year peak achieved last summer”, adds Moore. | Yet “residential growth remains much softer than the two-and-a-half year peak achieved last summer”, adds Moore. |
| The growth of the British construction industry slowed in December because of subdued demand, according to the latest purchasing managers index (PMI) for the sector. | The growth of the British construction industry slowed in December because of subdued demand, according to the latest purchasing managers index (PMI) for the sector. |
| IHS Markit’s closely followed barometer fell to a reading of 52.8 in December, down from 53.4 in November. The index remained above the 50 no-change mark, indicating the sector is still growing, but it came in slightly below economists’ expectations of 52.9. | IHS Markit’s closely followed barometer fell to a reading of 52.8 in December, down from 53.4 in November. The index remained above the 50 no-change mark, indicating the sector is still growing, but it came in slightly below economists’ expectations of 52.9. |