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GSK’s consumer spin-off Halon, home to brands ranging from Sensodyne toothpaste to Panadol pain reliever, has begun trading on the London Stock Exchange on the largest European listing in a decade.
Halon shares began trading at 330p on Monday morning, with a market cap of around £31bn.
The demerger marks GSK’s biggest corporate restructuring in two decades and will see the pharmaceutical firm focus on infectious diseases and vaccines failing to develop its own COVID-19 vaccinations during the pandemic.
Halon’s flotation is a litmus test to gauge the financial strength of the City of London and the appetite for new listings, with the company set to join GSK on the FTSE 100 index of blue-chip stocks.
The last stock market listing on a similar scale was mining and commodities company Glencore, which debuted in 2011 at a £38bn market value. This gives a boost to the UK stock market at a time when the Japanese-owned Cambridge chip designer arm SoftBank is expected to choose New York for its return to the public markets, although it will be able to move to a secondary position in London after lobbying the UK government. list may be requested.
Read more here.
While Brent crude prices are climbing this morning, it is worth remembering that prices are still in a lower range than their highs of around $130 per barrel in March.
Weak economic growth and concerns about weak demand have driven oil prices back sharply in recent weeks.
In fact, they’re hovering at their lowest levels since the invasion of Ukraine in February, and actually ended last week low for the fifth week in a row:
Shares of Deliveroo fell 5% after slashing revenue forecasts
Food delivery platform Deliveroo has blamed the UK’s faltering economic prospects for affecting its own revenue forecasts.
The group cut its full-year revenue growth expectations to between 4-12%, a significant drop from its previous forecast of 15-25%, due to a “more cautious economic outlook.”
This follows second-quarter revenue growth, down from 12% in the first quarter to 2%, which the company said reflects “the impact of increased consumer headwinds.”
Consumers are pulling back on discretionary spending, including take-out orders, as they try to make up for the cost of living crisis, which has taken a bite out of household finances.
Deliveroo said he is ready to tighten his belt:
Management is confident in the company’s ability to adapt financially to a rapidly changing macroeconomic environment through improved gross margins, more efficient marketing spend and tighter cost controls.
The news sent shares down 5% at the open, although they seem to have stabilized to trade around 15% lower per share at around 84p after the initial drop.
Major European stock markets climbed in the open:
- FTSE 100 opens 0.66% higher
- France’s CAC 40 rose 0.58%
- Germany’s DAX opens 0.5% higher
- Spain’s IBEX rose 0.76%
INTRODUCTION: Oil prices climb after Biden fails to secure production growth
Good morning, and welcome to our rolling coverage of business, the world economy and financial markets.
Brent crude prices jumped over $100 a barrel this morning, rising more than 2.6% to $103.88, as traders digested the lack of progress in securing production growth pledges from Saudi Arabia over the weekend.
US President Joe Biden’s visit to the Middle East sparked renewed concern about global oil supplies, which momentarily retreated last week as fears of a looming global recession grew that could dampen demand.
It was remarks by Saudi Arabia’s foreign minister, Prince Faisal bin Farhan Al Saud, that dashed hopes on a deal. He said oil was not discussed at a US-Arab summit on Saturday and the oil cartel group of exporting countries known as OPEC+ would continue to assess market conditions.
This will continue to put pressure on homes that have been hit by rising costs of living, including energy prices.
Naeem Aslam, Chief Market Analyst, AvaTrade said:
Biden’s recent visit to Saudi Arabia sent a clear message to businessmen, during which President Biden spoke to several Arab leaders.
The message is that it is OPEC+ that decides the oil supply, and the cartel is not remotely interested in what Biden is trying to achieve. OPEC+ will continue to control oil supply, and only one country cannot determine oil supply – at least that is the message traders have taken from Biden’s visit to Saudi Arabia.
Brent Oil price crossed above the $100 price mark earlier today, and if the price continues to trade above this price mark, it is highly likely that the path of least resistance will turn upwards .
Otherwise, we will be tracking Bank of England officials’ comments and the Bank’s earnings from the US.
work schedule
- 10 a.m. BST: Bank of England MPC member Michael Saunders speaks at the Resolution Foundation
- 12:30 am BST: Goldman Sachs, Bank of America report Q2 earnings