Markets Defused aims to give an easy-to-understand and straightforward recap of the week’s most engaging business and stock market news.
- US bank earnings were a mixed bag
- Pfizer is advancing a GLP weight loss pill
- Apple strikes ‘tap and go’ agreement with EU
- PepsiCo dented amid snack slowdown
- Dr Martens comfortable as financials met expectations
- Manchester United reckons it’ll hit a new revenue record
- BP warns of ‘disorderly’ and more costly energy transition
- Novo Nordisk slipped as research favoured Eli Lilly
- Paramount deal wrapped up by Skydance
- Carlsberg adds soft drinks with £3.3bn Britvic deal
US bank stocks a mixed bag on earnings Friday
Friday brought the first wave of big-bank results in America, with the financials very much presenting a mixed bag for the sector.
In the market Bank of New York Mellon Corp (NYSE:BK, ETR:BN9) rose more than 5%, whilst Wells Fargo & Co (NYSE:WFC, ETR:NWT) fell more than 5.6%, Citigroup Inc (NYSE:C) fell just under 2% and JPMorgan Chase & Co (NYSE:JPM, ETR:CMC) was down 0.6%.
Pfizer is advancing a GLP weight loss pill
Pfizer Inc (NYSE:PFE, ETR:PFE) stock started Thursday strongly, and was up a more modest 1% as trading settled down, after the drug maker confirmed it was advancing a once-daily weight-loss pill.
The drug, danuglipron, was previously explored as a twice-daily pill but that program was discontinued due to patient intolerance.
Pfizer now sees more encouraging data from early trials of its latest formulation. Dose-optimisation studies are now slated for the second half of this year, with results coming next year.
Like Ozempic, Danuglipron is a glucagon-like peptide-1 (GLP-1) receptor agonist, which boosts ‘satiety’ by slowing down digestion – which means that it promotes weight loss by improving signals to the brain that the person is “full”.
Unlike Ozempic, if successful, Pfizer’s treatment will be an oral pill rather than a weekly injection.
Apple strikes ‘tap and go’ agreement with EU
Apple Inc (NASDAQ:AAPL, ETR:APC) has agreed a deal with the European Union to resolve a row over Apple Pay and the use of near-field communication (NFC) on iPhones.
It sees Apple concede to allow third-party developers to use the iPhone’s NFC capabilities for third-party payment wallets.
The agreement means Apple will avoid a massive antitrust fine that, according to media commentators, could have run up 10% of its global turnover (which could’ve meant some $40 billion).
Meanwhile, according to the European Commission, the new arrangements prevent Apple from excluding rival mobile wallets from the iPhone ecosystem.
PepsiCo dented amid snack slowdown
PepsiCo Inc (NASDAQ:PEP, ETR:PEP) reported quarterly revenue shy of market forecasts.
The soda and snacks company did give the market better-than-expected earnings – $2.28 per share versus $2.16 - for the second quarter, but, cautioned over an underperforming snacks and food segment which left investor sentiments on the bearish side.
Revenue for the second quarter came in at $22.5 billion, compared to a consensus market forecast of $22.59 billion.
Looking ahead, PepsiCo pitched its full-year organic revenue growth outlook to 4%, down from a somewhat woolly prior guidance of "at least 4%".
Chief executive Ramon Laguarta noted that consumers across all income levels are more value-conscious, shifting increasingly towards cheaper store brands and fewer purchases.
Dr Martens comfortable as first quarter met expectations
Dr Martens PLC (LSE:DOCS) shares traded positively, up around 3% on Thursday, as it confirmed its first quarter had met expectations – with management focusing on cost-cutting and pushing for greater ‘direct-to-consumer’ selling.
The comments came on Thursday, in a brief statement ahead of today’s AGM.
The company expects financial results to be heavily weighted towards the second half of the year, noting that Q1 is the boot maker’s ‘smallest’ period of the financial year.
It highlighted that it is focusing on the upcoming autumn/winter 2024 season and is implementing detailed trading plans.
Manchester United reckons it’ll hit a new revenue record
Manchester United Plc (NYSE:MANU) told investors it is expecting to bank record revenue for its financial year, but on Thursday it marked a net loss of £71.4 million for its third quarter.
The club, meanwhile, was confident that it will comply with the Premier League's profitability and sustainability rules - which allows clubs to make a loss of up to £105 million over three seasons.
Fewer home fixtures in the quarter – because of the early exit from European competition – saw revenue for the three-month period down 19.6% year-on-year, at £136.7 million.
Improved commercial revenue saw a slight increase, up 0.3% to £69.6 million in the quarter, and sponsorship revenue was down 0.7%.
BP warns of ‘disorderly’ and more costly energy transition
BP PLC (LSE:BP.), which has been rowing back its ‘net zero’ plans following last year’s management change, on Wednesday published its annual ‘energy outlook’ commentary – in which it said that the global transition to clean energy would be disorderly and more costly, if current trends persist.
The oil and gas major estimated that crude oil demand would ‘peak’ in 2025, at 102 million barrels per day, before gradually declining.
Even by 2035 the oil major estimates the demand for crude would remain at a robust 97.8 million barrels per day – which is more than seen last year.
BP also sees demand for natural gas on the rise, mostly coming from ‘emerging economies’
As such, BP is reckoning on fossil fuels playing a significant role in the global energy mix over the next decade.
Novo Nordisk (NYSE:NVO) slipped as research favoured Eli Lilly
Ozempic and Wegovy maker Novo Nordisk (NYSE:NVO) saw its shares drop nearly 2% on Monday, after a new study showed that Eli Lilly and Co (NYSE:LLY) (Eli Lilly and Co (NYSE:LLY)) weight loss treatments outperformed those made by its Danish rival.
The analysis, published in JAMA Internal Medicine, compared the weight loss effects of tirzepatide (Eli Lilly's Mounjaro) and semaglutide (Novo Nordisk (Novo Nordisk (NYSE:NVO))'s Wegovy) in 18,000 overweight and obese adults over a year.
The study found that adults taking tirzepatide lost more weight at three, six, and twelve months compared to those taking semaglutide.
Specifically, the study claimed tirzepatide users were 76% more likely to lose at least 5% of their body weight, 154% more likely to lose 10%, and 224% more likely to lose 15%.
Nevertheless, it was not a “head to head” controlled trial, rather researchers compared health data and ‘weight loss trajectories’ of patients taking the respective drugs, and, also adjusted the findings to account for individual risk factors.
Paramount deal wrapped up by Skydance
Paramount Global (NASDAQ:PARA) stock responded positively after the media conglomerate (finally) agreed to merge with Skydance Media, in a deal valued at $28 billion.
Skydance’s investor group, comprising David Ellison and Redbird Capital Partners, will acquire Paramount shareholder National Amusements for $2.4 billion, and spend $4.5 billion in a cash and stock deal to acquire Paramount’s publicly traded Class A shares and Class B shares.
It also committed to invest $1.5 billion of primary capital into the media group’s balance sheet.
Carlsberg adds soft drinks with £3.3bn Britvic deal
Danish beer brewer Carlsberg has agreed to buy soft-drinks and mixer firm Britvic PLC (LSE:BVIC) for £3.3 billion ($4.2 billion).
Carlsberg will pay Britvic shareholders 1,315 pence per share, improving on previously rejected lower offers.
Ian Durant, Britvic’s non-executive chair, said the deal creates an enlarged international group positioned for growth in multiple drinks sectors.
Carlsberg CEO, Jacob Aarup-Andersen, highlighted that the combination of Britvic’s soft drinks and Carlsberg’s beer portfolios enhances the enlarged company’s proposition in the UK and Western Europe.
PepsiCo, which in the UK and Ireland has its products bottled and distributed by Britvic, had already agreed to waive a ‘change of control’ clause, in a side-deal with Carlsberg, to facilitate a transaction. As such, the bottling operations will continue.