Stock prices on the FTSE 100 index fall, driven primarily by decreases in pharmaceutical sector stocks, following the announcement of a new appointment by President Trump.
In a surprising turn of events, the FTSE 100's jaw-dropping streak came to an abrupt halt on Wednesday due to a controversial US regulatory appointment. The index took a nosedive throughout the day, eventually losing 0.4% before the closing bell.
Big pharma players like GSK and AstraZeneca faced significant losses, with drops of nearly 5% and 2%, respectively. This tumultuous market reaction was triggered by the appointment of Vinay Prasad, a vocal critic of COVID-19 vaccines and medication approval processes, as the next director of the Center for Biologics and Research at the FDA.
Prasad, a university professor, has previously voiced criticisms against vaccines and the FDA's pandemic response, raising eyebrows amongst investors. In 2021, Prasad even suggested that the nation's response to the pandemic could lead to a democratic collapse, likening it to the rise of Hitler and the Third Reich in Germany.
Russ Mould, AJ Bell's investment director, shed some light on the situation: "Not only are suggestions of tariffs looming for the pharmaceutical sector, but the controversial appointment of vaccine skeptic Vinay Prasad to a key role at the FDA, along with a warning from Novo Nordisk, have put immense pressure on GSK and AstraZeneca."
Meanwhile, Vodafone shares took a hit after the company's chief financial officer announced his departure, making him the shortest-serving CFO in the FTSE 100 giant's history. Pest-control firm Rentokil's stock dipped 1%, following news that their CEO, Andy Ransom, would retire by 2026. Investors may be hesitant about this transition, considering Ransom is in the midst of revitalizing the company's struggling North American business.
Over in the FTSE 250, the index slid 0.3%, ending a nine-day winning streak – its best run since 2020. Trainline took a 5% plunge as the company prepared to confront Labour's rival state-owned service.
On Tuesday, the FTSE 100 managed to extend its 16-day winning streak, despite starting the session in the red. The index eked out a 0.01% gain, fueled by a boost in investor sentiment when Trump retreated on his 'Liberation Day' tariffs. Trump's sudden tariffs on trading partners sparked fears of a global trade war escalation.
The FTSE 100 tumbled 5% as China countered with retaliatory tariffs following the US actions. London's markets have displayed resilience compared to their Wall Street counterparts, with the S&P 500, Dow Jones, and tech-heavy Nasdaq all ending the day in the red, with losses ranging from 0.77% to 0.95%. Shares in tech giants Tesla and Apple have seen declines of 27% and 19% since January, respectively, as a result of Trump's unpredictable trade policies.
During early trading on Wednesday, the S&P hovered between small gains and losses, while the Dow rose 0.5% and the Nasdaq slipped 0.4%.
- The appointment of Vinay Prasad, a vocal critic of COVID-19 vaccines and medication approval processes, as the next director of the Center for Biologics and Research at the FDA has put immense pressure on pharmaceutical companies like GSK and AstraZeneca in the finance industry, causing significant losses and retreat in stocks markets.
- The FTSE 100's losing streak on Wednesday was triggered by the controversial appointment of Prasad, raising scepticism among investors, and the warning from Novo Nordisk about GSK and AstraZeneca.
- Prasad's controversial appointment and suggestions of tariffs looming for the pharmaceutical sector have created a tumultuous market situation in business, affecting stocks and the overall mood of the investing community.
- In 2026, Rentokil's CEO, Andy Ransom, will retire, and this transition may be met with hesitancy from investors, considering Ransom is in the midst of revitalizing the company's struggling North American business.
- Shares in tech giants Tesla and Apple have seen declines in 2021, with losses of 27% and 19% respectively, due to Trump's unpredictable trade policies, causing a bell to toll in the electronics and tech industries.
