Equity rally resumes after Christmas

Chinese profits analyses

In China, profits earned by industrial firms dropped 4.4% in the first 11 months of the year, a clear improvement after the 7.8% decline recorded in the January/October period. Profits at state-owned firms declined by -6.2%, compared to -9.9% in Jan-Oct. Profits in the private sector rose 1.6%, after a 1.9% decline in the January/October period. The survey details showed that ferrous and non-ferrous metal smelting and rolling rose the most, giving a boost to copper, zinc and iron ore prices.

AstraZeneca buys Gracell Biotechnologies

AstraZeneca struck a deal on Tuesday to buy Gracell Biotechnologies, a Chinese cancer therapy company, for £950Mln. The operation allows AstraZeneca to expand in cancer research and treatment, which already accounts for about one-third of its business. While this is AstraZeneca's first acquisition in China, it does already have a big presence in the country. China is Astra's second-largest market. The acquisition of Gracell is AstraZeneca's second tie-up with a Chinese firm in two months after it struck a deal to develop a weight-loss pill with the Chinese biotech firm Eccogene in November. AstraZeneca made 13% of its revenues in China last year.

Horizonte Minerals' interim funding package

Nickel mine development company Horizonte Minerals has agreed a $20Mln interim funding package provided by Orion, Glencore and La Mancha to provide liquidity while a full funding solution is hammered out. After a near 90% loss of value in October, Horizonte has seen mass resignations at board level with the interim management team now reviewing the outstanding Project capital expenditure and schedule re-estimate, necessary to implement a full funding solution.

Ratcliffe's 25% stake in Manchester United

Last Sunday, British billionaire Jim Ratcliffe struck a long awaited opportunity to buy a 25% stake in Manchester United. Ratcliffe's stake purchase at $33 per share values ManU at $6.3Bln billion including debt. Ratcliffe pledges to invest $300 million in the club to try to revive its fortunes. $200 million will be paid on closing of the deal, and a further $100 million by the end of 2024. Ratcliffe's INEOS group will take over management of the club's operations. This ends more than a year of uncertainty the Glazer family said in November 2022 they were looking at strategic options. In a statement, Jim Ratcliffe said, "As a local boy and a lifelong supporter of the club, I am very pleased that we have been able to agree a deal with the Manchester United Board that delegates us management responsibility of the football operations of the club".

Apple files appeal on ITC's Apple Watch ban

Apple has filed an appeal to the International Trade Commission's decision to ban US sales of Apple's Watch Series 9 and Watch Ultra 2 models. The models, which Apple says are their most popular, were banned after the ITC found that Apple infringed patents held by health tech firm Masimo on blood oxygen saturation technology. Apple is also requesting an emergency stay on the ban for at least two weeks until a decision is made on redesigned versions of the banned models. Apple's legal team is claiming it "will suffer irreparable harm" if the models remain off the shelves during legal proceedings.

Oil price analysis

Oil prices were little changed of Wednesday after rising more than 2% the previous session. Investors are monitoring Red Sea developments, where some major shippers are resuming passage through the area despite continued attacks by Yemen's Iran-backed Houthi militia. API and EIA weekly inventories are expected on tonight and tomorrow respectively, a day later than normal for both reports due to the Christmas holiday.