AstraZeneca’s £200bn milestone is a boon for the London stock market, says Danni Hewson, head of financial analysis at AJ Bell.
It’s been a long time coming but AstraZeneca has reached quite the milestone. Quietly, without fanfare, its share price climbed just 1% today but that was enough to push the pharmaceuticals giant to a market cap of over £200 billion.
“AstraZeneca’s CEO laid out ambitious plans earlier this year to launch 20 new medicines and double revenue by the end of the decade. It’s revamped its pipeline of drugs, investing in research and development with an eye on future growth.
“A decade ago, it had to defend itself against a hostile takeover by US giant Pfizer and go on to prove that had been the right decision. Its growth has been steady rather than showy, with the potential for advances in cancer treatment, and in some cases weight loss drugs, attracting investor attention.
“Today is a pat on the back for Pascal Soriot but it’s also a boon for London markets which have been fighting to maintain their relevance.”
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Time for a recap…
AstraZeneca has become the only company on the UK stock market to currently be worth £200bn.
The UK’s unemployment rate has dropped unexpectedly, dipping to 4.2% in April-June, from 4.4%.
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Wage growth slowed in the quarter, though; regular pay (excluding bonuses) rose by 5.4% in April to June, the lowest increase since May to July 2022.
Economists warned that the slowdown in wage growth suggested the labour market was cooling, with companies also cutting the number of vacancies available.
Over in Germany, investor confidence has tumbled at the fastest rate in just over two years, prompting a warning that the economic outlook at Europe’s largest economy is “breaking down”.
Shares in Starbucks have surged 20% after it ousted chief executive Laxman Narasimhan, replacing him with Chipotle’s Brian Niccol
UK grocery inflation has risen for the first time since March last year, returning to the rate seen before the start of the cost of living crisis.
A US recession is now the biggest “tail risk” to the financial markets, according to a poll of European fund managers today, who also see the UK as the most attractive European market to invest in
The International Energy Agency has warned there has been a “marked slowdown” in Chinese oil demand growth.
Russia’s rouble has weakened again today.
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