logo
AstraZeneca unveils plans for £37bn investment in US amid tariff threats

AstraZeneca unveils plans for £37bn investment in US amid tariff threats

Leader Livea day ago
The Cambridge-headquartered firm said the investment will fund a new 'state-of-the-art' manufacturing facility in Virginia – set to be its largest single manufacturing investment in the world.
It will also expand research and development (R&D) and cell therapy manufacturing in Maryland, Massachusetts, California, Indiana and Texas.
The announcement marks the latest by a global pharmaceutical giant to expand its footprint in the US as Mr Trump has threatened to impose tariffs of up to 20% on drug imports in an effort to increase manufacturing in America and drive down costs for Americans.
AstraZeneca said the mammoth investment will create tens of thousands of jobs across the US, 'powering growth and delivering next-generation medicines for patients in America and worldwide'.
The Anglo-Swedish group, which is listed on the FTSE 100, said the investment will also help it towards the group's target of reaching 80 billion US dollars (£59.4 billion) in revenues by 2030.
Half of this is expected to come from the US, it added.
Pascal Soriot, chief executive of AstraZeneca, said: 'Today's announcement underpins our belief in America's innovation in biopharmaceuticals and our commitment to the millions of patients who need our medicines in America and globally.'
Despite being headquartered in the UK, America is AstraZeneca's largest market, where it employs more than 18,000 staff and makes 42% of total group sales.
It already has 19 R&D, manufacturing and commercial sites across the country.
The new factory planned for Virginia will produce drug substances for the company's weight management and metabolic portfolio, it said.
Howard Lutnick, US Secretary of Commerce, said: 'For decades Americans have been reliant on foreign supply of key pharmaceutical products.
'President Trump and our nation's new tariff policies are focused on ending this structural weakness.
'We are proud that AstraZeneca has made the decision to bring substantial pharmaceutical production to our shores.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Wall St extends gains after report of US-EU nearing trade deal
Wall St extends gains after report of US-EU nearing trade deal

Reuters

time23 minutes ago

  • Reuters

Wall St extends gains after report of US-EU nearing trade deal

July 23 (Reuters) - Wall Street's main indexes moved higher on Wednesday after a Financial Times reported that the EU and the United States were closing in on a trade deal, similar to the agreement U.S. President Donald Trump struck with Japan. Wall Street, already on an upward trajectory, spiked after the report said that the U.S. and the EU are nearing a deal to set 15% tariffs on all European imports. Both sides would waive tariffs on some products, including aircraft, spirits and medical devices, the report said. The bullish momentum followed closely on the heels of Trump's trade deal with Japan, which will slash tariffs on Japanese autos to 15% from 27.5%, with duties on other goods also dropping to 15% from 25%. An agreement with the Philippines also followed, which yielded a modest cut in tariff rate. At 12:20 p.m. ET, the S&P 500 (.SPX), opens new tab gained 31.08 points, or 0.49%, to 6,340.70 and the Nasdaq Composite (.IXIC), opens new tab rose 43.28 points, or 0.21%, to 20,935.97. The Dow Jones Industrial Average (.DJI), opens new tab edged higher 417.80 points, or 0.93%, to 44,917.71, within striking distance of its record peak. Wall Street's "fear gauge", the CBOE Volatility Index (.VIX), opens new tab, dipped to its lowest level in over five months. Earlier in the day, the European Commission was preparing to seek approval for 93 billion euros ($109 billion) in counter-tariffs on American goods just in case the talks fell through. "The key thing is the markets have confidence that the White House is going to continue to work through these trade deals," said Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report. Investors are now laser-focused on earnings from the "Magnificent Seven" — a group of marquee names that has helped propel U.S. stocks to all-time highs. EV maker Tesla (TSLA.O), opens new tab and Google-parent Alphabet (GOOGL.O), opens new tab are set to report after the bell on Wednesday. With AI optimism running high and valuations stretched, expectations for these tech giants are sky-high, leaving little margin for disappointment. Shares of Tesla were largely steady, while Alphabet moved 0.9% lower. GE Vernova's (GEV.N), opens new tab shares climbed 14.1% to an all-time high, as the power equipment maker raised its current-year revenue and free cash flow forecasts after beating Wall Street estimates for second-quarter profit. The stock, which has gained about 91% so far this year, boosted the S&P's industrials index (.SPLRCI), opens new tab for the day, up 1.6%. Medical equipment maker Thermo Fisher (TMO.N), opens new tab surged 11.8% after beating Wall Street's estimates for second-quarter profit and revenue. Of the 117 companies in the S&P 500 that have reported earnings to date, 84.6% have reported above analysts' expectations, as per data compiled by LSEG I/B/E/S. On the downside, Texas Instruments (TXN.O), opens new tab tumbled 12.1% after its quarterly profit forecast failed to impress investors, pointing to weaker-than-expected demand for its analog chips from some customers and underscored tariff-related uncertainty. The earnings also weighed on its peer analog chipmakers, with NXP Semiconductors (NXPI.O), opens new tab, Analog Devices (ADI.O), opens new tab and ON Semiconductor (ON.O), opens new tab falling between 2.7% and 6.7%. In economic data, U.S. existing home sales fell more than expected in June. Focus now shifts to Thursday's weekly jobless claims numbers and S&P Global's flash PMI data to gauge economic health in the wake of tariff uncertainties. Following a mixed set of economic data last week, traders have ruled out an interest rate cut by the Federal Reserve next week. Odds for a September reduction stand at about 58%, according to the CME FedWatch tool. Advancing issues outnumbered decliners by a 1.97-to-1 ratio on the NYSE and by a 1.91-to-1 ratio on the Nasdaq. The S&P 500 posted 43 new 52-week highs and two new lows, while the Nasdaq Composite recorded 80 new highs and 16 new lows.

FTSE 100 closes at record high as investors assess earnings and US-Japan trade deal
FTSE 100 closes at record high as investors assess earnings and US-Japan trade deal

Reuters

timean hour ago

  • Reuters

FTSE 100 closes at record high as investors assess earnings and US-Japan trade deal

July 23 (Reuters) - Britain's FTSE 100 rose on Wednesday to a record close for a third straight session, helped by positive corporate updates, while a U.S.-Japan trade deal also boosted global sentiment. The benchmark FTSE 100 (.FTSE), opens new tab closed up 0.4% at 9,061.49 points. The domestically oriented midcap FTSE 250 (.FTMC), opens new tab also gained 0.4%. U.S. President Donald Trump struck a trade deal with Japan, lowering tariffs on auto imports and sparing Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans. The UK's automobiles and parts index (.FTNMX401010), opens new tab rose 2.5%, tracking strength in Asian rivals. Aston Martin (AML.L), opens new tab and Dowlais Group (DWL.L), opens new tab gained 8.1% and 1.2%, respectively. Healthcare stocks (.FTNMX201030), opens new tab rose 2.5%, with AstraZeneca (AZN.L), opens new tab and GSK (GSK.L), opens new tab gaining 3.1% and 1.8% respectively. Medical equipment and services (.FTNMX201020), opens new tab rose 1.5%, with a boost from Smith+Nephew (SN.L), opens new tab, up 1.8%. Media stocks (.FTNMX403010), opens new tab advanced 2.2%, boosted by Informa's (INF.L), opens new tab 4.9% rise after the events and academic publishing group raised its annual underlying revenue growth forecast. Conversely, construction and materials (.FTNMX501010), opens new tab stocks lost 1.5%, with Breedon Group (BREE.L), opens new tab down 7.5%, after the company forecast annual results at the low end of market expectations. In company news, Alpha Group (ALPH.L), opens new tab hit a record high and was last up 25.6% after U.S. payments firm Corpay (CPAY.N), opens new tab said it would buy the financial services provider in a $2.2 billion (1.6 billion pounds) cash deal. Hochschild Mining (HOCM.L), opens new tab rose 7.6% on stronger-than-expected quarterly silver output. J D Wetherspoon (JDW.L), opens new tab gained 1.9% after the pub group reported a rise in sales in recent weeks since May. British stocks have rallied this year, pushing the FTSE 100 to all-time highs in recent weeks, as hopes of interest rate cuts, optimism over the UK-U.S. trade deal and a surge in commodity prices lifted sentiment. Traders are currently pricing in an 89% chance of a 25 basis point BoE cut next month, according to data compiled by LSEG. This week, attention is on the UK flash Purchasing Managers' Index for July, due on Thursday, and retail sales data for June on Friday. Meanwhile, India and Britain will sign a free trade agreement on Thursday during Indian Prime Minister Narendra Modi's visit to Britain, officials said.

FTSE 100 hits new high amid US trade talk optimism
FTSE 100 hits new high amid US trade talk optimism

The Independent

timean hour ago

  • The Independent

FTSE 100 hits new high amid US trade talk optimism

European stocks climbed on Wednesday, boosted by hopes of further progress in trade talks after the US struck a deal with Japan. The FTSE 100 index closed up 37.68 points, 0.4%, at 9,061.49, a record closing peak. It had earlier hit an all-time high of 9,080.09. The FTSE 250 closed up 79.23 points, 0.4%, at 22,013.49 and the AIM All-Share closed up 3.85 points, 0.5%, at 773.99. In European equities on Wednesday, the Cac 40 in Paris advanced 1.5%, while the Dax 40 in Frankfurt gained 0.8%. In New York, the Dow Jones Industrial Average was up 0.4%, the S&P 500 traded 0.3% higher and the Nasdaq Composite firmed 0.2%. Late on Tuesday, President Donald Trump said the US had agreed a 'massive' trade deal with Japan that would include a 15% tariff on its exports. He had previously threatened Japan, a major US trading partner, with a tariff of 25% beginning on August 1 if a deal was not reached. 'We just completed a massive Deal with Japan, perhaps the largest Deal ever made,' Mr Trump announced on social media. Under the deal, 'Japan will invest, at my direction, USD550 Billion Dollars into the US, which will receive 90% of the Profits', he added. Japanese Prime Minister Shigeru Ishiba was more circumspect, saying he needed to examine the deal before commenting. 'As for what to make of the outcome of the negotiations, I am not able to discuss it until after we carefully examine the details of the negotiations and the agreement,' he told reporters in Tokyo after Mr Trump's announcement in Washington. The deal comes after Mr Ishiba faced a bruising weekend election that left his coalition without a majority in the upper house. 'The trade agreement is undoubtedly good news for Japan,' said Kathleen Brooks at XTB. 'The auto component is by far the biggest coup for Japan, as that makes up the bulk of exports to the US. 'By lowering the auto tariff rate to 15% – auto tariffs were a flat 25% rate before the exemption for Japan – it is giving hope that those countries who have yet to agree tariff rates with the US can seal good deals if they pledge investment into the US.' The trade pact sent equities soaring in Asia with the Nikkei 225 closing up 3.5% on Wednesday and the Hang Seng in Hong Kong gaining 1.6%. Car makers such as Toyota climbed 14%, and Honda jumped 11%. Mitsubishi rose a more modest 3.6%. European car makers rose, with BMW, Mercedes-Benz Group and Volkswagen up 4.4%, 5.9% and 5.3% respectively, in Frankfurt. Renault was up 2.6% in Paris, and Citroen and Fiat owner Stellantis was up 8.9% in Milan. In London, luxury car maker Aston Martin Lagonda rose 8.1%. Deutsche Bank's Jim Reid said the Japan deal has 'significantly raised hopes that the EU might also be able to reach a trade deal, as they've been threatened with 30% tariffs on August 1'. Attention in the US will also be on tech earnings, with results due from Tesla and Alphabet after the closing bell in New York. The pound rose to 1.3571 dollars late on Wednesday afternoon in London, compared with 1.3508 at the equities close on Tuesday. The euro traded at 1.1737 dollars, slightly up against 1.1735. Against the yen, the dollar was trading lower at 146.33 compared with 146.49. On the FTSE 100, Informa rose 5.3%. It raised its full-year outlook and added to its share buyback after reporting 20% growth in half-year sales and adjusted profit. The London-based international events, digital services and academic publishing business increased full-year underlying revenue growth guidance to at least 6% from at least 5%, including 8% plus in Live B2B Events. The dividend was increased by 9.4% to 7.0 pence from 6.4p. In addition, Informa said it would buy back a further £150 million of shares through the second half of 2025, taking the total commitment to £350 million in 2025. On the FTSE 250, Breedon tumbled 7.3% as it forecast that full-year profit will be at the low end of market expectations. The Leicestershire-based building materials company said that given a 'difficult' first half and macroeconomic headwinds, 'we now expect our result for the full year will be at the low end of the current range of market expectations'. Breedon put the range for 2025 earnings before interest, tax, depreciation and amortisation between £291.4 million to £311.5 million, growth of at least 19% from £245.8 million in 2024. Halfords rose 2.9% as Panmure Liberum upgraded it to 'buy' from 'hold' with a 200p share price target. The broker noted 'evidence of tangible green shoots' and said recent trading has pointed to a fundamental improvement rather than a one-off performance. 'However, given previous false dawns, investors may require further evidence before declaring a new era,' Panmure Liberum added. The yield on the US 10-year Treasury was quoted at 4.38%, up from 4.34%. The yield on the US 30-year Treasury was quoted at 4.94%, widened from 4.91%. The biggest risers on the FTSE 100 were Informa, up 40.8p, at 866.8p, JD Sports Fashion, up 3.9p at 89.7p, AstraZeneca, up 322.0p at 10,674.0p, Ashtead, up 122.0p at 4,857.0p and Croda International, up 62.0p at 2,879.0p. The biggest fallers were Centrica, down 5.3p at 158.7p, SSE, down 58.0p at 1,912.0p, United Utilities, down 28.5p at 1,138.5p, Severn Trent, down 66.0p at 2,717.0p and National Grid, down 22.0p at 1,062.5p. Brent oil was quoted lower at 68.24 dollars a barrel in London on Wednesday, from 68.30 dollars late on Tuesday. Gold eased to 3,412.38 dollars an ounce against 3,426.29 dollars.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store