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Good morning and welcome to our ongoing coverage of the global economy, financial markets, the eurozone and business.
The city has woken up to a bargaining frenzy this morning, with three deals with serious ramifications heralding far beyond the markets.
First, the video platform TikTok has opted for a ‘technology partnership’ with enterprise software giant Oracle, rather than selling off its US operations as President Donald Trump had demanded.
At first glance, that looks like a win for Oracle’s Larry Ellison over Microsoft, but the link is not yet certain whether it will be approved.
My colleague Alison Rourke explains:
The Washington Post reported that Oracle had been chosen by ByteDance as a “technology partner” to allay US concerns, and Reuters quoted a source as saying it would be a restructuring rather than a sale, with Oracle handling user data. Americans from TikTok. The source did not disclose how much of the US operations of TikTok, ByteDance and their investors would continue to own.
ByteDance will need approval of the deal from both Washington and Beijing. It’s unclear whether Trump, who wants a US tech company to own most of TikTok in the United States, will approve the proposal.
One of Britain’s biggest tech companies is changing hands too, in a controversial deal.
US tech giant Nvidia has just finalized a $ 40 billion acquisition of ARM, the UK-based semiconductor designer, from Japan’s Softbank.
ARM is a true UK success story, with a legacy dating back to Acorn Computers, whose BBC Micro helped teach a generation of children how to become familiar with computers and coding (some ahem better than others).
Its chip architecture is used in virtually every mobile phone today and will also power the next generation of Apple Macs.
Nvidia insists it will expand Arm’s R&D presence in Cambridge, UK, by “establishing a world-class AI research and education center.” But there is a backlash, and the founder of the company worries that jobs will be lost and that Nvidia will destroy the company’s business model of licensing intellectual property to chipmakers.
Rory Cellan-Jones
(@ ruskin147)https://t.co/3husABs2lg ARM, the crown jewel of UK technology, sold by Softbank to Nvidia for $ 40 billion. The deal described by co-founder Hermann Hauser as a disaster: He is writing to 10 Downing Street warning that it will destroy the company’s business model and make Britain “a vassal state of the United States.”
Third, US biopharmaceutical company Gilead is acquiring cancer drug company Immunomedics in a $ 21 billion merger. Gilead is most famous for its Remdesivir treatment for Covid-19, but this deal will expand its cancer treatments.
In particular, Immunomedicine ” drug Trodelvy, a treatment for metastatic triple negative breast cancer.
Gilead CEO Daniel O’Day explains the deal could be seen Trodelvy used to treat more types of cancer:
“Trodelvy is a transformational drug approved for a form of cancer that is particularly difficult to treat.
We will now continue to explore its potential to treat many other types of cancer, both as monotherapy and in combination with other treatments.
European equity markets are expected to open higher as investors digest this avalanche of news. There is also relief that AstraZeneca has resumed trials of its Covid-19 vaccine, after a brief hiatus last week after an analyst fell ill.
IGSquawk
(@IGSquawk)Smooth recovery as tests resume.
European opening calls:#FTSE 6059 + 0.45%#DAX 13278 + 0.57%#CAC 5068 + 0.68%#AEX 554 + 0.42%#MY B 19938 + 0.59%#MOUNTAIN GOAT 6986 + 0.62%#OMX 1805 + 0.18%#STOXX 3335 + 0.58%#IGOpeningCall
We will follow all the action during the day.
The agenda
- 10am BST: Euro zone industrial production for July
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