Thursday, October 10, 2024

The London Rush: GSK pays out

GSK settles Zantac litigation.

Hi, I'm Louise from Bloomberg UK's breaking news team, catching you up on this morning's business stories.

GSK is writing a big cheque.

The drug giant will pay up to $2.2 billion to settle 80,000, long-running US court cases that have spooked investors and sent its share price on a wild ride. 

The cases centered around allegations that Zantac, a recalled drug for heartburn, caused cancer. In settling the claims, representing about 93% of the ones against the drugmaker, it follows peers including Sanofi and Pfizer, which also marketed the medicine. GSK hasn't admitted liability.

Worries had mounted over how many billions GSK might have to pay, with analyst estimates reaching $8 billion last year and even $45 billion in 2022. That has weighed heavily on its share price, with tens of billions of dollars wiped off the market value of companies linked to the drug. Shares recovered as the cases were eventually settled.

It draws a line under years of limbo — and not only for plaintiffs. Investors will be breathing a huge sigh of relief. Shares popped 6% this morning.

What's your take? Ping me on X, LinkedIn or drop me an email at lmoon13@bloomberg.net. Oh, and do subscribe to Bloomberg.com for unlimited access to trusted business journalism on the UK, and beyond.

What We're Watching

Brookfield has gazumped property developer Segro. The Canadian investor will buy warehouse owner Tritax EuroBox for £557 million — an offer that came in 6% higher than Segro's.

HSBC will target senior, expensive bankers in a restructuring that aims to save up to $300 million, according to the FT.

Labour has a big day ahead. It is setting out a 10-year infrastructure plan, in another sign Reeves will boost borrowing by the billions, as well as a workers' rights bill.

Plus, Rio Tinto's muscling into the lithium market via its buyout of Arcadium Lithium — as we mentioned yesterday — is ultimately a bet against China, argues Bloomberg Opinion's Javier Blas: "rarely a good idea."

Global Catch Up

Markets Today: Housing Optimism

Here's your daily snap analysis from Bloomberg UK's Markets Today blog:

The plethora of UK housing releases can sometimes make it confusing to get a handle on what exactly is going on in the market.

The various gauges of prices all show different changes each month, which is perhaps why a number of observers prefer to focus on one survey that contains no hard price data, but rather takes into account the views and experiences of estate agents.

Which is why the Royal Institution of Chartered Surveyors today saying its gauge of prices has turned positive for the first time in almost two years is still a significant moment, despite other surveys showing growth for months, or even years.

The report is pretty positive all round. Agents across all regions reported higher prices and anticipated further gains. Buyer demand climbed for a third consecutive month, while sales also picked up. 

One caveat though. Tarrant Parsons, head of market analytics at RICS says that "critical for the outlook, a further unwinding in monetary policy is anticipated over the months ahead." 

The implication is, if the BOE don't provide that, the recovery could prove short lived.

David Goodman

Check Bloomberg UK's Markets Today blog for updates all day.

What's Next

Recruiter Hays updates on how this financial year is panning out — and whether things are looking up. Pretax profit plunged 91% last year on hiring challenges, both permanent and temporary.  

It is trying to restructure and reposition to mitigate impacts, and lift a share price that has shed about 20% since January.

Three of the Best: London Gastropubs

Hello, its Kate from Pursuits. It is officially hunkering down season — and the great British pub is the perfect place to do it. But, gone are the sticky floors and pork scratchings. Some pubs are now putting out some impressively tasty food — as well as your favourite tipple:

The Hero, Maida Vale

Tucked near the canal, this restored Victorian pub serves a long list of classics on ground level, but head upstairs for the more ambitious grill. Try the sweet little clams with smoked butter, complimented by a well curated European wine list.

The Cadogan Arms, Chelsea

A few years ago, powerhouse restaurant group JKS took over this King's Road institution. James Knappett, also of two Michelin-starred Kitchen Table, has perfected ham, egg and chips — among many other traditional dishes. The décor evokes a glamorous Victorian gin palace.

The Devonshire, Soho

We couldn't forget the perennially packed pub that pours up to 20,000 pints of Guinness a week. In his white-brick walled grill, executive chef Ashley Palmer-Watts maximises the in-house butcher to create specialties including luscious beef cheek. Polish it off with Guinness suet pudding.

Source: The Devonshire

Pub Quiz

Labour will unveil a package of new workers' rights today, as Keir Starmer tries to balance demands of union funders and business leaders. Which of the following is not expected to be included?

  • Sick pay entitlements from day one
  • Protections around worker surveillance
  • Paid heartbreak leave

[Yesterday's answer: John J. Hopfield and Geoffrey E. Hinton were awarded the Nobel Prize in physics for being pioneers in artificial intelligence.]

More from Bloomberg

Enjoy The London Rush? Subscribe here if you haven't already.

Already subscribed? Here are a couple newsletters we think you might like:

  • The Readout for essential UK insights on the stories that matter
  • Money Distilled for John Stepek's daily newsletter on what market moves mean for your money
  • Explore more Bloomberg newsletters at Bloomberg.com.

Stay updated by saving our new email address

Our email address is changing, which means you'll be receiving this newsletter from noreply@news.bloomberg.com. Here's how to update your contacts to ensure you continue receiving it:

  • Gmail: Open an email from Bloomberg, click the three dots in the top right corner, select "Mark as important."
  • Outlook: Right-click on Bloomberg's email address and select "Add to Outlook Contacts."
  • Apple Mail: Open the email, click on Bloomberg's email address, and select "Add to Contacts" or "Add to VIPs."
  • Yahoo Mail: Open an email from Bloomberg, hover over the email address, click "Add to Contacts."

No comments:

Post a Comment