Refinitiv Newscasts - UK Day Ahead: M&A and stimulus optimism boost markets
08/02/2021 15:31
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_sbumunuz&referenceId=1_sbumunuz&pageId=RefinitivNewscasts Source: Reuters Description: A couple of key M&A deals and optimism about the impact of a big U.S. stimulus led European markets to start the week on a high, despite concerns over the Astra Zeneca vaccine after it was pulled from a rollout in South Africa. Short Link: https://refini.tv/3tGyyuq Video Transcript: Good afternoon. I'm Elena Casas. Welcome to your wrap up of the day's top news and an insight into what's coming up on Tuesday. First, European stocks are having a positive session. Hopes of a faster than expected global economic recovery from the pandemic and M&A is helping to lift investor appetite. Here's a look at the main indices. We're seeing gains in cyclical sectors, including basic resources, banks, and chemicals. Tech stocks are also rising, thanks to Dialog Semiconductor. That's on news that Japan's Renesas Electronics has agreed to buy Dialog Semiconductor for about $6 billion in cash. France's Veolia Environnement also joined the M&A fund. It's launching a bid for Suez worth close to $14 billion. One analyst in Frankfurt told us it all adds up to another layer of optimism for the weeks ahead. If Janet Yellen who's kind of a rock star in US financial circle's talks about getting everyone into work again as soon as possible, then you know there'll be more financial assistance measures. And don't forget another thing- the earnings season is coming, and this year, we'll see quite a dividends payout. Debate is intensifying over how effective AstraZeneca's COVID vaccinations are after South Africa halted its planned rollout of the vaccine. Research data there suggests it gives only minimal protection against mild infection from one variant, meaning possibly that even those who had the jab might risk passing it on. The vaccine maker itself believes its vaccine can protect against severe disease. And officials in Britain and Australia urged calm. Some British researchers also spoke up in its favor, as did the British Prime Minister. We're very confident in all the vaccines that we're using. And I think it's important for people to bear in mind that all of them we think are effective in delivering a high degree of protection against serious illness and death, which is the most important thing. A quick look ahead to Tuesday's diaries. On the corporate front, Monte dei Paschi, Osram Light, and TUI lead the earnings reports. German trade is likely to headline the day's economic data. Economists expect a 1% drop in exports in December. Monday's data showed German industry stagnating on the month. Output was flat. And finally, is this a small step in a long and winding road to a self-driving future? This car is being driven by an autonomous system designed by Oxbotica. The self-driving software startup is partnering with BP to trial the software in a live environment of BP's Lingen refinery in Germany. Last month, Oxbotica says it raised $47 million in its latest funding round led by the venture arm of oil giant, BP, and including health and safety device maker Halma and Tencent. Some investors estimate a fifth of global new car sales will be self-driving vehicles by 2030. And that's it for now. I'm Elena Casas, and this is Reuters