Hammerson agreed mammoth acquisition of Intu, Smith & Nephew completes purchase of Rotation Medical
London open
The FTSE 100 is expected to open 34 points lower on Wednesday, having closed down 0.16% at 7,327.50 on Tuesday.
Stocks to watch
GlaxoSmithKline released new data from a Phase III clinical study on Wednesday, which it said supports the safety and efficacy of Shingrix in preventing shingles when given to adults 18 years and above shortly after undergoing autologous haematopoietic stem cell transplant. The FTSE 100 drugmaker said Shingrix is a non-live, recombinant adjuvanted subunit vaccine given intramuscularly in two doses. It said the ZOE-HSCT study succeeded in its primary objective by demonstrating an efficacy of 68.17% against shingles in subjects above 18 years of age after receiving an autologous haematopoietic stem cell transplant.
Medical technology business Smith & Nephew has completed the acquisition of Rotation Medical Inc, which develops novel tissue regeneration technology for shoulder rotator cuff repair, for $125m, with a further $85m due over the next five years contingent on financial performance. The company said Rotation Medical's rotator cuff system is "highly complementary" to its existing portfolio of shoulder repair technologies to supplement repairs of more complex tears.
Shopping centre owner Hammerson has agreed to buy FTSE 350 rival Intu Properties in a £3.4bn all-share deal that will create a £21bn portfolio across Europe. Hammerson, which has received support from shareholders holding 51% of Intu's stock, plans to strengthen the balance sheet and provide funds for reinvestment with a £2bn property disposal programme once the deal is concluded.
Newspaper round-up
Theresa May is facing mounting pressure to secure a breakthrough in EU negotiations after the Democratic Unionist party expressed shock at the handling of the Irish border question and Brexit-supporting Conservatives said the time had come to walk away. Senior cabinet members also voiced unease at May’s tactics, and complained they were not informed in advance about Downing Street’s plan to promise the EU some form of “regulatory alignment” to help move the divorce talks on to the next stage. – Guardian
The head of the elections watchdog has demanded urgent reform of the UK’s electoral laws and warned that the country faces a “perfect storm” of threats that could put the integrity of the system at risk. Sir John Holmes, the chair of the Electoral Commission, also confirmed to the Guardian that the body has launched an inquiry into possible Russian interference in the EU referendum and is waiting for evidence from Facebook, Google and Twitter. – Guardian
As many as 670 British jobs are at risk after US conglomerate General Electric said it had submitted a proposal to employee representatives following a review into its power division. The UK cuts are thought to be part of a wider cull, with 4,500 roles to be slashed across Europe, according to French newspaper Les Echos. – Telegraph
Russia took a step closer to becoming the world’s largest exporter of shipped gas with the start-up a $27bn (£20bn) project in the Arctic circle. The liquefied natural gas (LNG) project, located by Russia’s remote Obe River in the far north, began production on Tuesday and will export its first cargo of super-cooled liquid gas by the end of the week. – Telegraph
The boss of Aetna is in line for a $500 million payday if the health insurer’s takeover by CVS goes through. Mark Bertolini, chief executive of America’s third largest health insurer, would receive most of the payout through shareholdings and options amassed since taking the helm of the company seven years ago. – The Times
Deliveroo has tried to address criticism of how it treats its self-employed workers by offering them an income insurance policy that protects their pay if they get injured or fall ill. The four-year-old fast-food delivery platform said that the policy, for which its scooter, motorbike and bicycle couriers would have to pay £1.85 a week, would provide cover when they suffered an injury while working for Deliveroo or when illness left them unable to work. – The Times
US close
Wall Street finished on a downbeat note on Tuesday, as traders digest weaker-than-expected readings on service sector activity and foreign trade while scanning the headlines for news regarding the US tax reform proposals, which were making their way through Congress.
The Dow Jones Industrial Average finished down 0.45% at 24,180.64, the S&P 500 was off 0.37% at 2,629.57 and the Nasdaq Composite ended the session 0.19% softer at 6,762.21.
On Monday, the Dow notched up a record close as investors cheered the passing of the US tax reform bill, but the rest of the market closed in the red, with technology stocks under the cosh.
“Technology has been the most consensus, as well as the one of the best-performing trades of 2017,” said Jasper Lawler, head of research at London Capital Group.
“That combination is making investors nervous going into year-end and they are taking profits.
“After briefly reaching a three-day high on Monday, the tech-heavy Nasdaq 100 slammed back down to finish -1.17% and near its lows.”