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LONDON — Most global equities indices rose on Monday following fresh COVID vaccine results, while investors also digested glum economic data that could herald another virus-driven downturn, dealers said.

British drugs group AstraZeneca and the University of Oxford said their jointly-developed vaccine has shown an average 70 per cent effectiveness in trials involving 23,000 people.

The results ranged between 62 and 90 per cent efficacy depending on the vaccine dosage.

The announcement came after other trials of drugs developed by Pfizer/BioNTech and Moderna announced effectiveness above 90 per cent.

In afternoon London trading, the benchmark FTSE 100 index was down by 0.3 per cent, while AstraZeneca's share price had given up 2.7 per cent to £80.80. 

In the eurozone, market indices in Frankfurt and Paris had each added about 0.3 per cent.

"The biggest benefits will be saved for tourism and hospitality," Oanda analyst Craig Erlam forecast.

Meanwhile, the British pound rebounded on reports that Brussels and London were set to unveil a long-awaited post-Brexit trade deal.

"The results of AstraZeneca and Oxford University's COVID-19 vaccine trial result failed to trigger a major rally in equities with the 70 per cent efficacy result perhaps disappointing in comparison to the results from Pfizer and Moderna," said AJ Bell analyst Russ Mould.

"In relative terms one can understand why AstraZeneca's result only triggered a shrug of the shoulders from investors."

Monday's news came after Pfizer and its German partner BioNTech applied for emergency use authorisation for their drug, which could be rolled out next month. 

Moderna is expected to make its own application soon.

The need for an inoculation has been underscored by soaring infection and death rates in the US and elsewhere as the northern hemisphere heads into winter, when viruses usually spread more.

Some US states have started imposing new restrictions, while European countries including England and France have returned to lockdowns.

Europe's equity gains were dented also by a key survey showing that economic activity plunged in November on fresh lockdowns aimed at curbing the second wave of coronavirus — indicating a quick return to recession.

RIYADH — G-20 leaders said on Sunday they will "spare no effort" to ensure the fair distribution of coronavirus vaccines worldwide, and support poor countries whose economies have been ravaged by the crisis.

As the pandemic rages, the cartel of the world's richest countries adopted a unified tone on the challenges ahead during a virtual summit hosted by Saudi Arabia.

Saudi Arabia's King Salman Bin Abdulaziz said that the "spirit of cooperation" was needed now "more than ever to face the impact of the pandemic and create a prosperous future for the people of the whole world".

But after a weekend of "digital diplomacy", their closing communique lacked details on many of the issues dominating the talks.

"We have mobilised resources to address the immediate financing needs in global health to support the research, development, manufacturing and distribution of safe and effective COVID-19 diagnostics, therapeutics and vaccines," they said in the statement.

"We will spare no effort to ensure their affordable and equitable access for all people."

While richer nations plan their vaccination programmes, with the US expecting to launch in early December, experts warn that developing countries face hurdles that could deny billions the first proven protection against the virus.

Calls are mounting for the G-20 to help plug a $4.5-billion funding gap in the so-called ACT-Accelerator, a mechanism led by the World Health Organisation that aims to ensure access to tests, treatments and vaccines for all.

In a comment echoed by other leaders, French President Emmanuel Macron said on Saturday that the coronavirus crisis was "a test for the G-20", stressing there "will be no effective response to the pandemic unless it is a global response".

However, the final communique did not spell out how the massive cost of the exercise would be underwritten.

In the communique though, the group adopted a consensus position on climate change, reiterating support for tackling "pressing" environmental challenges.

But the group faces mounting pressure to help stave off possible credit defaults among developing nations, as their debt soars amid the economic catastrophe stoked by the virus.

It has extended a debt service suspension initiative (DSSI) for developing countries until June next year, but UN Secretary-General Antonio Guterres has led calls for a commitment to extend it until the end of 2021.

The communique did not offer a firm guarantee to this request.

Instead, G-20 finance ministers will examine the recommendation when the International Monetary Fund and World Bank meet next spring "if the economic and financial situation requires" an extension by another six months, they said.

With the world in disarray after months of border closures and lockdowns, the group also struck a unified tone on trade, saying that supporting a multilateral system "is now as important as ever".

"We strive to realise the goal of a free, fair, inclusive, non-discriminatory, transparent, predictable and stable trade and investment environment, and to keep our markets open," the communique said.

RIYADH — Saudi Arabia’s King Salman Bin Abdulaziz opened the G-20 summit on Saturday in a first for an Arab nation, with the virtual forum dominated by efforts to tackle the coronavirus crisis and the worst global recession in decades.

G-20 leaders popped up in multiple windows across a flickering screen, in a high-stakes webinar held amid the raging pandemic.

The leaders are huddling online for the two-day "gathering" as international efforts intensify for a large-scale rollout of coronavirus vaccines after a breakthrough in trials, and as calls grow for G-20 nations to plug a $4.5-billion funding shortfall.

"Although we are optimistic about the progress made in developing vaccines, therapeutics and diagnostics tools for COVID-19, we must work to create the conditions for affordable and equitable access to these tools for all people," said King Salman, the summit's host.

"We have a duty to rise to the challenge together during this summit and give a strong message of hope and reassurance to our people by adopting policies to mitigate this crisis," he told world leaders in opening remarks.

As the trailblazing event got under way, there were some early quirks, with someone heard telling the king that "the whole world is watching" before the event started, Chinese President Xi Jinping apparently having to call for technical help, and French President Emmanuel Macron chatting to an aide off camera.

With Saudi hopes for a grand coming-out parade dashed due to the pandemic, the event is reduced to brief online sessions of what observers call "digital diplomacy".

Despite having to abandon much of the usual summit pageantry, Saudi Arabia launched the meeting with an aerial acrobatics display over Riyadh.

And denied the opportunity to take the traditional "family photo", a montage of G-20 leaders was projected onto the ruins of the historical town of Diriyah during a gala event on Friday.

Along with Xi, German Chancellor Angela Merkel and Russian President Vladimir Putin are among the leaders who are expected to speak at the summit, with climate change among the issues topping the agenda, sources close to the organisers said.

US outgoing President Donald Trump is also taking part but it is unclear whether he will make an address. 

'Bolder measures' 

G-20 nations have contributed more than $21 billion to combat the pandemic, which has infected 56 million people globally and left 1.3 million dead, and injected $11 trillion to "safeguard" the virus-battered world economy, organisers said.

But the group's leaders face mounting pressure to help stave off possible credit defaults across developing nations.

Last week, its finance ministers declared a "common framework" for an extended debt restructuring plan for virus-ravaged countries, but campaigners say the measure is insufficient.

The ministers had extended a debt suspension initiative for developing countries until June next year but UN Secretary-General Antonio Guterres has pushed for a commitment to extend it until the end of 2021.

International Monetary Fund managing director Kristalina Georgieva has warned that the global economy faces a hard road back from the COVID-19 downturn even as vaccines are now in sight.

G-20 nations must help plug the $4.5-billion funding gap in the so-called ACT-Accelerator, Norway's prime minister, South Africa's president, the heads of the European Union and the World Health Organisation demanded in a joint letter to the group.

The programme promotes an equitable distribution of COVID-19 vaccines to rein in the pandemic.

LONDON — Stocks pulled back on Thursday as a global rally fuelled by vaccine optimism petered out in the face of surging infections that are forcing fresh lockdowns and threatening to shock the global economy again.

While the broad consensus is that 2021 will see a healthy recovery across the world as people are gradually inoculated, traders are focusing on the immediate crisis as the US and Europe suffer a new wave of the killer disease.

"After the soaraway gains of the past two weeks, equities now look much more richly valued, and thus vulnerable to an outbreak of bad news," said Chris Beauchamp, chief market analyst at IG trading group.

"This is precisely what we got in the form of spreading infections in the US but also in Japan, a worrying sign indeed for a country that had been successful earlier in the year in controlling the spread.

"Even reports of success for AstraZeneca's new vaccine were not enough — the impact of these vaccine announcements having been on a declining trend since the first excitedly received news from Pfizer almost three weeks ago," Beauchamp added.

World markets have enjoyed an impressive run this month thanks to Joe Biden's US election victory and then news that two vaccine candidates had shown to be more than 90 per cent effective in late trials.

The announcements lifted hopes that the planet can begin to get back to some form of normality soon.

However, Wall Street took a decisive turn lower in late trade on Wednesday when New York Mayor Bill de Blasio said he would shut schools because of rising infections.

The move indicated that the soaring number of new cases around the US — the country has registered more than 100,000 every day for two weeks — could force lockdowns similar to those that battered the economy earlier this year.

Meanwhile, a rise in new filings for unemployment benefits in the United States also dented sentiment.

The increase to 740,000 new claims reverses a recent decline in the figure and comes as more states restrict the operations of businesses such as restaurants and gyms.

Key European economies including France, Germany and Britain have already imposed new or partial lockdowns, while other countries around the world including Japan and South Korea have been forced to take new containment action.

European Central Bank chief Christine Lagarde on Thursday called for the EU's planned coronavirus recovery fund to become available "without delay", after Poland and Hungary blocked the adoption of the plan.

The appeal came ahead of a videoconference by EU leaders set to be dominated by the budget row, which threatens to hold up the unlocking of badly needed stimulus to cushion the economic hit from the pandemic.

It also comes as Washington has yet to agree on a massive new stimulus package for the United States.

WASHINGTON — US regulators on Wednesday cleared the Boeing 737 MAX to return to the skies, ending its 20-month grounding after two fatal crashes that plunged the company into crisis.

The Federal Aviation Administration (FAA) said the approval followed "an unprecedented level of collaborative and independent reviews by aviation authorities around the world".

In a video that accompanied the announcement, FAA Administrator Steve Dickson said he was "100 per cent comfortable" with having his family fly the jet. Dickson piloted test flights during the approval process.

The plane was grounded after two crashes that killed a total of 346 people in 2018 and 2019. Both Boeing and the FAA have come under fire in the wake of the crisis, with critics saying Boeing sacrificed safety for profit and that FAA was too deferential to the private giant.

A principal cause of the two crashes was identified as a faulty safety system that was supposed to keep the plane from stalling as it ascended but instead forced the nose of the plane downward.

Boeing applauded the FAA's action as an "important milestone" in the company's journey to restoring its reputation and safely returning the jet to service.

"We will never forget the lives lost in the two tragic accidents that led to the decision to suspend operations," said Boeing Chief Executive David Calhoun.

"These events and the lessons we have learned as a result have reshaped our company and further focused our attention on our core values of safety, quality and integrity," Calhoun added.

The FAA announcement lifted shares of Boeing, which replaced its chief executive and several other top executives in the wake of the crisis. Boeing has also been slammed by a downturn in commercial plane travel due to the coronavirus pandemic.

But family members who lost loved ones in the crashes blasted the decision, according to a statement from Clifford Law Offices, which is representing the families in litigation.

"The aggressive secrecy of the FAA means we cannot believe the Boeing 737 MAX is safe", said Michael Stumo, whose daughter died in an Ethiopian Airlines crash of the plane in March 2019.

"We were told the plane was safe when certified in March 2017 and again after the Lion Air crash in October 2018. ”Just trust us' does not work anymore." That was the first of the two crashes, off the coast of Indonesia.

FAA: 'Reset' Boeing relationship 

To garner federal approval, Boeing made changes to the Maneuvering Characteristics Augmentation System (MCAS), the anti-stall system that activated improperly in the Lion Air and Ethiopian Airlines flights.

Dickson, in an interview with CNBC, said the changes to the jet "makes it impossible for the airplanes to have the same kind of accidents".

Dickson also insisted that the FAA had "reset" its relationship with Boeing and that agency employees who in the future challenge Boeing will have support from higher-ups at the regulator.

For Boeing, the FAA announcement creates a pathway to begin to deliver some 450 MAX planes that were already built, but were put in storage throughout the crisis.

Plane deliveries are tied to company revenues. Boeing has reported losses the last four quarters and the MAX crisis has cost the company some $20 billion in production expenses and compensation to airlines.

American Airlines has said it plans to begin service on the MAX at the end of December for service in between New York and Miami.

The FAA still must approve pilot training protocols for individual airlines before the MAX can return to service. 

Also, international regulators must sign off on the MAX before it can fly outside the US.

Transport Canada said it worked "extensively" with the FAA, but that it would require additional steps on pilot training and pre-flight procedures beyond what the US agency mandated for the American skies.

"We expect this process to conclude very soon," the Canadian agency said.

"The commercial flight restrictions for the operation of the Boeing 737 MAX aircraft in Canadian airspace remain in effect and will not be lifted until the department is fully satisfied that all its safety concerns have been addressed."

Boeing also still faces a number of investigations and lawsuits connected to the crashes. 

A report released in September from a House panel called the crashes "the horrific culmination of a series of faulty technical assumptions by Boeing's engineers, a lack of transparency on the part of Boeing's management, and grossly insufficient oversight by the FAA".

Shares of Boeing shot up early Wednesday, rising 5.3 per cent to $221.28 in early trading.

TOKYO — Tokyo stocks closed higher on Tuesday following overnight global rallies fuelled by the announcement of a second promising coronavirus vaccine candidate as major cities face new waves of infections.

The benchmark Nikkei 225 index added 0.42 per cent, or 107.69 points, to 26,014.62, while the broader Topix index gained 0.16 per cent, or 2.85 points, to 1,734.66.

"The Tokyo market took over buying sentiment from overseas," said Yoshihiro Okumura, general manager at Chibagin Asset Management.

"Investors simply reacted to positive news about the vaccine," Okumura said.

On Monday, stock markets climbed worldwide after US biotech firm Moderna announced its experimental vaccine against Covid-19 was almost 95 per cent effective — marking a second major breakthrough in the quest to end the pandemic following a similar announcement by Pfizer last week.

The news brightened investor spirits, putting the Nikkei index around its highest point in nearly three decades.

Technical charts continue to show the strength of the market, but some signs of possible overheating have also been seen following recent rallies, brokers said.

"In the short run, it is conceivable that we could see an adjustment at any time," Okasan Online Securities said in a note.

The dollar stood at 104.50 yen in Asia afternoon trade, edging down from 104.56 yen in New York on Monday.

Among major shares, Japan's leading drugmaker Takeda Pharmaceutical rose 1.12 per cent to 3,605 yen. The company has agreed to distribute 50 million doses of the Moderna vaccine in Japan, if it is approved.

NTT lost 0.58 per cent to 2,468 yen after the telecom giant said it successfully completed its $40-billion takeover of its mobile unit.

Nissan Motor gained 1.32 per cent to 475.2 yen, following a Monday media report that said the firm was reviewing its relationship with partner Mitsubishi Motors. Nissan and Mitsubishi denied the report.

Japan Airlines jumped 3.71 per cent to 2,010 yen, while rival ANA Holdings soared 4.16 per cent to 2,651.5 yen, after a report that Japan's government could cut taxes on jet fuel to help bolster the battered aviation sector.

TOKYO — Japan's economy exited recession in the third quarter, growing a better-than-expected 5 per cent, government data showed on Monday, following a record contraction.

A rise in domestic demand as well as exports helped drive the quarter-on-quarter growth, after the coronavirus pandemic and a consumption tax hike slammed the economy into reverse earlier in the year.

The positive figures come after three quarters of contraction in the world's third-largest economy, with revised data showing the economy shrank 8.2 per cent in Q2, more than the previously estimated 7.9 per cent.

That was the worst figure for Japan since comparable data became available in 1980, exceeding even the brutal impact of the 2008 global financial crisis.

The Q3 growth will be welcome news for Japan's government, which has avoided the tough lockdown measures seen in some other countries as it tries to balance preventing the spread of coronavirus with protecting the economy.

The results also beat economist expectations of 4.4 per cent growth, and analysts said the recovery was likely to continue into the final quarter of the year.

"Between July and September, economic activity in Japan experienced a return to a somewhat normal status as the government lifted the state of emergency in the country," said Naoya Oshikubo, senior economist at Sumitomo Mitsui Trust.

"Looking ahead, we believe that GDP figures in the next quarter should continue to show signs of recovery, albeit at a slower pace," Oshikubo said in a note before the official release of the data.

"Pent-up demand should decelerate, mainly due to second waves of COVID-19 overseas," he added.

Third wave 

Japan was already struggling with a stagnating economy and the impact of a consumption tax hike implemented last year before the pandemic hit.

It has seen a smaller coronavirus outbreak compared to some of the worst-hit countries, with infections approaching 120,000 and deaths at slightly under 2,000.

But Prime Minister Yoshihide Suga last week issued a warning over a recent rise in infections, though he said the government's campaign to promote domestic tourism would not be halted for now.

Japan imposed a nationwide state of emergency in April as cases spiked, but restrictions were significantly looser than in many countries, with no enforcement mechanism to shutter businesses or keep people at home. 

The emergency was lifted in June, and the government has been reluctant to reintroduce curbs.

Suga instructed his ministers last week to draw up a fresh economic stimulus package to help the economy weather the pandemic.

Earlier this year, the government unleashed massive spending, including sending approximately $900 in stimulus funds to every adult and child in the country.

Tom Learmouth, Japan economist at Capital Economics, said the effects of the stimulus efforts were clear in the latest figures, with a 2.2 per cent quarter-on-quarter rise in public spending.

"We expect GDP to rebound a further 1.2% quarter-on-quarter this quarter and to reach pre-virus levels — although not pre-sales tax hike levels — in the second half of next year," he wrote in a note.

"While the third wave of coronavirus that is now a reality is a downside risk, our current assumption is that it will be contained as the second wave was, with minimal restrictions imposed on economic activity," he added.

In October, the Bank of Japan (BoJ) lowered its economic growth and inflation forecasts for this fiscal year, but its governor said officials were ready to unveil fresh support measures if needed.

For the year to March 2021, the BoJ expects the economy to shrink 5.5 per cent, against a 4.7 per cent contraction in the July estimate.

PARIS — Energy firms are undertaking financially risky natural gas extraction projects from the Arctic to Africa made feasible by government-backed loans and guarantees, jeopardising efforts to curb global warming, experts say.

As pressure from the public and investors to green their portfolios grows, and the cost of renewable energy continues to fall, oil and gas majors are finding it harder to attract investment on new fossil fuel projects.

They are also increasingly reliant on government-backed funding — in the form of loans or insurance — several industry experts told AFP.

Eight export credit agencies awarded loans to French oil giant Total in July, when the company signed a $14.9-billion financing agreement for a liquefied natural gas (LNG) project in Mozambique.

The province where the sites are located, Cabo Delgado, has been grappling with an insurgency since 2017 that has killed more than 1,000 people.

Certain energy projects have become “very risky in general, let alone in regions with unstable politics”, said Dylan Tanner from Influence Map, which monitors the energy sector.

Beyond security issues, the think tank highlighted in a report last year the risk of “asset stranding” due to increasingly competitive renewable energy and tighter climate regulations.

Credit export agencies use government-backed funds to shore up projects.

If the projects go sideways due to geopolitics or become obsolete as technology and environmental policy evolves, they end up costing the state, not private investors.

“If there is a problem, taxpayers will pay for the damages, not the companies,” Cecile Marchand, from Friends of the Earth France, told AFP.

“Commercial banks would not take the risk of lending so much money on the long term without any insurance.”

‘Aware of climate concerns’ 

As well as the risk of financial loss and stranded assets, experts say projects such as Total’s in Mozambique also call into question states’ commitment to combat climate change.

The 2015 Paris treaty enjoins nations to limit global temperature rises to “well below” 2 degrees Celsius above pre-industrial levels through sweeping emissions cuts.

In order to meet a more ambitious cap of 1.5C of warming, the Intergovernmental Panel on Climate Change (IPCC) — the world’s leading body on the issue — says fossil gas use must decline from 132.95 Exajoules in 2020 to 112.51 Exajoules in 2030.

“Such a decline cannot happen if the global gas industry continues to expand,” Ted Nace from Global Energy Monitor told AFP.

Mozambique has already been battered by extreme weather events, a consequence of climate change.

Cyclone Idai — the strongest storm on record to hit southern Africa — struck in March 2019, leaving around 700 people dead and displacing 1.5 million others.

A little over a month after Idai, northern Mozambique was hit by another devastating storm, Cyclone Kenneth.

Scientists also warn of the consequences of methane leaks, inherent to LNG projects.

“Total is fully aware of climate concerns, has publicly recognised them for a long time, takes them into account in its strategies and develops concrete actions,” a company spokesperson told AFP.

‘Not fair’ 

France put an end to hydrocarbon extraction in 2017, but has left the door open to continuing to finance projects overseas until 2035.

Analysts say this puts it on a collision course with the goals of a deal it midwifed — the Paris accord requires each signatory to report only domestic emissions, not those it finances elsewhere.

“This is clearly not fair, since in many cases (such as the Mozambique LNG project), the gas will not be used domestically,” Nace said.

“It would make more sense for responsibility for such projects to rest with the wealthy countries that will use the gas.”

France’s credit export agency Bpifrance is considering giving a guarantee of 700 million euros ($827 million) to Total for a project in the Russian Arctic, an amount confirmed by the company.

Total has a 10 per cent stake in the Arctic LNG 2 project, which aims to export the equivalent of seven billion barrels of oil — 12 times France’s annual consumption.

In a document obtained by AFP, Total said the “continued support” provided by the French treasury and Bpifrance has been “paramount to the success of Yamal LNG”, the other major extraction projects in the Arctic.

Global Energy Monitor warned last year that new gas exploration — no matter where it occurred — “threatens to lock in massive amounts of greenhouse gas emissions and negate any chance of limiting global warming to the 1.5C tipping point”.

Marchand accused the government of being “hypocritical and irresponsible in regard to the climate emergency” by continuing to guarantee projects abroad that clash with the goal of slashing emissions.

Bpifrance did not respond to a request for comment.