Qinetiq shares plummet after trading update
Shares of U.K. defense firm Qinetiq tumbled to the bottom of the Stoxx 600 on Monday morning, shedding 18.4% by 8:46 a.m. London time.
That came after the company downwardly revised its revenue outlook for the year ending March 31, saying it now expects organic revenue growth for the year to come in at around 2%. The company had previously forecast high single digit organic revenue growth for the year.
Qinetiq cited “tough near-term trading conditions” and geopolitical uncertainty as factors weighing on its operations.
The company also said Monday it expects a £140 million ($181 million) impairment charge at the end of the year in light of operational performance in the United States, as well as a “number of one-off exceptional, largely non-cash charges” that would total between £35 million and £40 million.
— Chloe Taylor
AstraZeneca to purchase EsoBiotec for up to $1 billion
The office building of biopharmaceutical company AstraZeneca in Shanghai on May 23, 2024.
Nurphoto | Getty Images
British drugmaker AstraZeneca said Monday that it would purchase biotechnology firm EsoBiotec for up to $1 billion to advance its cell therapy ambitions.
EsoBiotec Engineered NanoBody Lentiviral platform helps attack cancer inside the body, offering patients potential “transformative cell therapy treatments” in just minutes, unlike the current process, which takes weeks, AstraZeneca said.
Under the deal, AstraZeneca buys all outstanding equity of EsoBiotec on a cash and debt-free basis, including an initial payment of $425 million on closing the deal and up to $575 million contingent on development milestones.
“EsoBiotec will accelerate and expand the impact of our recent investments and marks a major step forward in realizing our ambition to harness the full potential of cell therapy,” Susan Galbraith, executive vice president of oncology haematology research and development at AstraZeneca, said in a statement.
AstraZeneca shares were up 0.6% after the announcement.
— Karen Gilchrist
Trump reportedly says no exemptions on steel and aluminum tariffs
U.S. President Donald Trump said he has no intention of applying exemptions on steel and aluminum tariffsaccording to Reuters.
As such, reciprocal and sectoral tariffs will be imposed on April 2 alongside automotive duties, the report added, citing Trump’s comments to reporters on Air Force One.
This follows the 25% tariffs on steel and aluminum imports by the White House, which came into effect last Wednesday.
Countermeasures swiftly came through from the U.S.’ trading partners. For instance, the European Union said it would impose tariffs on 26 billion euros ($28.33 billion) worth of U.S. goods from April.
– Amala Balakrishner
CNBC Pro: A big markets week lies ahead
Wall Street is headed for a big week ahead, with investors desperate for any clarity on the macroeconomic picture that could put a bottom in for equity prices.
This week, the Federal Reserve is set to hold its latest policy meeting, while economic data will be scrutinized by investors lasering in on any signs of the consumer pulling back. Elsewhere, Nvidia CEO Jensen Huang will be in focus as he takes the stage at the GTC developer conference to speak on the future of AI.
CNBC Pro subscribers can read the full story here.
– Sarah Min
European markets: Here are the opening calls
European markets are expected to start the new trading week in positive territory.
The U.K.’s FTSE 100 index is expected to open 21 points higher at 8,653, Germany’s DAX up 90 points at 23,019, France’s CAC 9 points higher at 8,034 and Italy’s FTSE MIB 182 points higher at 38,819, according to data from IG.
There are no major earnings releases on Monday; on the data front, however, Italy will publish its latest inflation print.
— Holly Ellyatt
