European Defence Firm Shares Plummet Amid Hopes of Ukraine Peace Talks
The shares of European defence company Rheinmetall have fallen by 3.5% at the start of trading, and wholesale gas prices are down too, after officials from Washington and Kyiv held weekend talks in Geneva over how to end the Ukraine-Russia war.
The US and Ukraine said they had created an "updated and refined peace framework" to end the war with Russia, after a row over an original US-backed document that included many of Moscow's demands. The US secretary of state, Marco Rubio, said he was "very optimistic" about the progress of the talks in Switzerland.
However, the war continued over the weekend, with a Russian drone strike on the major Ukrainian city of Kharkiv killing four people and wounding 17 on Sunday. Hopes that the Geneva talks could lead to a breakthrough and fewer weapons sales were knocked when German defence firm Rheinmetall's shares fell. Renk, which makes propulsion and drivetrain components for military vehicles, also dropped by 4%.
UK Supermarket Chain Asda Faces Credit Downgrade
UK supermarket chain Asda has seen its credit rating cut deeper into junk territory after Fitch downgraded Bellis Finco PLC, the parent company of ASDA Group, to 'B' from 'B+', with a negative outlook.
Fitch took the decision after concluding that Asda's strategy of price cuts would hurt profits, and after analysing last week's plan to sell off 24 stores and a distribution centre and lease them back. The downgrade reflects Fitch's expectation that the pricing and availability strategy introduced to regain market share would lead to a larger contraction in earnings.
Pharmaceutical Firm Novo Nordisk's Shares Fall
Shares in Danish pharmaceuticals giant Novo Nordisk have fallen to their lowest level since July after it reported that its Alzheimer's treatment had failed to show a "statistically significant" reduction in progression of the disease.
Novo says that two trials of its semaglutide drug had failed to show that it slowed cognitive decline in Alzheimer's patients, despite showing improvement of Alzheimer's disease-related biomarkers. The company is still hoping to use semaglutide for diabetes treatment and obesity management.
Budget Day Looms Over London
UK government bonds and the pound are calm today as investors await the budget in two days' time. However, there could be ructions on Wednesday if investors are disappointed by Rachel Reeves' fiscal plans.
Reeves is expected to announce a flurry of smaller tax rises to close a fiscal black hole and create more headroom for the government to hit its fiscal targets. The CBI will also hear from Peter Kyle, Secretary of State for business and trade, and Kemi Badenoch, Leader of the Opposition, this morning.
Oil Price Falls
The oil price is on track for its fourth daily fall in a row as Brent crude has dipped by 0.7% to $62.08 a barrel. Analysts say that the oil market remains caught between expanding global output and heightened geopolitical volatility.
The shares of European defence company Rheinmetall have fallen by 3.5% at the start of trading, and wholesale gas prices are down too, after officials from Washington and Kyiv held weekend talks in Geneva over how to end the Ukraine-Russia war.
The US and Ukraine said they had created an "updated and refined peace framework" to end the war with Russia, after a row over an original US-backed document that included many of Moscow's demands. The US secretary of state, Marco Rubio, said he was "very optimistic" about the progress of the talks in Switzerland.
However, the war continued over the weekend, with a Russian drone strike on the major Ukrainian city of Kharkiv killing four people and wounding 17 on Sunday. Hopes that the Geneva talks could lead to a breakthrough and fewer weapons sales were knocked when German defence firm Rheinmetall's shares fell. Renk, which makes propulsion and drivetrain components for military vehicles, also dropped by 4%.
UK Supermarket Chain Asda Faces Credit Downgrade
UK supermarket chain Asda has seen its credit rating cut deeper into junk territory after Fitch downgraded Bellis Finco PLC, the parent company of ASDA Group, to 'B' from 'B+', with a negative outlook.
Fitch took the decision after concluding that Asda's strategy of price cuts would hurt profits, and after analysing last week's plan to sell off 24 stores and a distribution centre and lease them back. The downgrade reflects Fitch's expectation that the pricing and availability strategy introduced to regain market share would lead to a larger contraction in earnings.
Pharmaceutical Firm Novo Nordisk's Shares Fall
Shares in Danish pharmaceuticals giant Novo Nordisk have fallen to their lowest level since July after it reported that its Alzheimer's treatment had failed to show a "statistically significant" reduction in progression of the disease.
Novo says that two trials of its semaglutide drug had failed to show that it slowed cognitive decline in Alzheimer's patients, despite showing improvement of Alzheimer's disease-related biomarkers. The company is still hoping to use semaglutide for diabetes treatment and obesity management.
Budget Day Looms Over London
UK government bonds and the pound are calm today as investors await the budget in two days' time. However, there could be ructions on Wednesday if investors are disappointed by Rachel Reeves' fiscal plans.
Reeves is expected to announce a flurry of smaller tax rises to close a fiscal black hole and create more headroom for the government to hit its fiscal targets. The CBI will also hear from Peter Kyle, Secretary of State for business and trade, and Kemi Badenoch, Leader of the Opposition, this morning.
Oil Price Falls
The oil price is on track for its fourth daily fall in a row as Brent crude has dipped by 0.7% to $62.08 a barrel. Analysts say that the oil market remains caught between expanding global output and heightened geopolitical volatility.
rheinmetall's shares have been doing this for weeks now... feels like a sign that ppl are getting tired of all this war stuff 
and profit from the conflict 
i mean, it's not like they don't have a vested interest in keeping the war going... but still, gotta keep hopes alive that we might see some real change soon 
any thoughts on how this will affect military spending in europe? also, can't help but wonder if asda's credit downgrade is a sign of bigger problems for uk retailers 
rheinmetall shares are already tanking tho, like who needs a peace framework when u got bombs to sell? 
anyway, at least gas prices dropped, that's something right? 
and novo nordisk's shares fell because their alzheimers treatment failed to deliver 
come on rheinmetall, those shares are gonna tank no matter what happens in geneva lol, they've been making those military parts for ages now. and asda's credit downgrade is no surprise, their prices have been ridiculously low for ages. i mean, who wants to shop at a supermarket that's just gonna sell stuff cheaper than anyone else? 
shouldn't we be focusing on diplomacy over military hardware? 
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, it's about time for some peace. But come on Rheinmetall's shares falling after all this? I mean, they should be happy to contribute to a more peaceful world, not watching their profits plummet