A host of British insurers have said they will not pay for treatment using a “miracle” weight loss jab, which launched in Britain today.
Aviva, Axa and WPA said they would not offer customers Novo Nordisk’s weight-loss drug Wegovy under their private medical insurance.
From today, some NHS patients could be prescribed the drug.
However, Aviva said: “Private medical insurance provides cover for acute conditions, that is disease, illness or injury that is likely to respond quickly to treatment.
“Treatment with Semaglutide, for diabetes or weight loss, is not a benefit under our policies.”
Axa also said it only covered acute illnesses, while WPA said it has a general exclusion on obesity.
Semaglutide is the active pharmaceutical ingredient in Wegovy and in Novo’s drug Ozempic, which was already available on the NHS to treat type 2 diabetes.
The drugs have been described by doctors as ‘game-changing’, with impressive results previously only seen after weight loss surgery.
Interest in the jabs has soared since endorsements by celebrities such as Elon Musk – who uses Wegovy to lose weight – and Jeremy Clarkson, who says he has had “tremendous” results from Ozempic.
Read the latest updates below.
12:31 PM BST
Weight-loss drug could help 50,000 patients in England
Around 50,000 patients in England could be prescribed Wegovy through the NHS, writes James Warrington.
An NHS spokesperson said:
Despite global supply constraints, NHS England is taking action to begin implementing NICE guidance for weight management, while at the same time working to restore supplies of this class of drug for people with type 2 diabetes.
Around 50,000 eligible patients in England could be prescribed Wegovy through NHS specialist weight management services, that are able to provide appropriate multidisciplinary care.
12:24 PM BST
Wegovy available in Britain from £199
Wegovy has been made available in Britain from today in what Novo called a “controlled and limited launch”.
The company has not specified the price or how much it would supply, although online retailer Simple Online Pharmacy told Reuters it would sell Wegovy in a price range from £199 to £299.
This includes a consultation with a general practitioner, prescription and dispensing costs.
Novo Nordisk is pushing ahead with the launches of its weight-loss drug in Europe even as it struggles to keep up with demand.
The Danish drugmaker is trying to convince governments and insurers to cover the cost of the drug, seeking to position it as more than a lifestyle drug.
Wegovy was launched in the US in June 2021 but it took Novo until December last year to make all doses available there because of an initial production outage.
12:10 PM BST
Weight loss drug not covered by private medical insurers
Aviva has said it will not pay for treatment with Novo Nordisk’s weight-loss drug Wegovy, which became available on the NHS today.
A spokesman for Aviva, which has 1.1m UK customers with private medical insurance, said:
Private medical insurance provides cover for acute conditions, that is disease, illness or injury that is likely to respond quickly to treatment.
Treatment with semaglutide, for diabetes or weight loss, is not a benefit under our policies.
Semaglutide is the active pharmaceutical ingredient in Wegovy and in Novo’s drug Ozempic, which is also available on the NHS for treatment of type 2 diabetes.
11:45 AM BST
Lack of net zero goals prompted shareholder revolt, says Grafton
Grafton Group has said a failure to set out net zero goals was partly behind a shareholder rebellion against its chairman’s pay.
The Irish DIY retail giant launched a consultation after 21pc of investors chose not to support the resolution to re-elect Michael Roney at the firm’s annual general meeting in May.
In a statement today, the FTSE 250 company said “a mix of factors” were behind the revolt, with two institutional shareholders voting against his re-election because the company has not set net zero targets or published Scope 3 greenhouse gas emissions data.
Two more cited insufficient gender diversity on the board and at senior management, while another two mentioned the number of board appointments held by Mr Roney in listed companies.
One shareholder also expressed the personal view that the firm should have a better chair, the company added.
Last week, Grafton committed to delivering net zero carbon emissions by the end of 2050 as it released its half year report for 2023.
11:32 AM BST
Wetherspoons to cut prices to highlight tax burden
Wetherspoons pubs are cutting the prices of all food and drinks for one day this week in a bid to highlight the tax burden on the hospitality industry.
The chain will reduce prices by 7.5pc in pubs across the UK and Ireland on Thursday, meaning, for example, a customer spending £10 on food and drinks will pay £9.25 for one day only.
The move is being done to mark Tax Equality Day, by highlighting the benefit that a permanent VAT reduction would have on pubs and restaurants across the UK.
Prices in Scotland will be reduced on food and non-alcoholic drinks, in line with Scottish licensing laws.
Wetherspoons said it wants to expose the “vast disparity” in how pubs and restaurants are taxed, compared with supermarkets.
The group’s founder and chairman, Tim Martin, said:
The biggest threat to the hospitality industry is the vast disparity in tax treatment among pubs, restaurants and supermarkets.
Supermarkets pay zero VAT in respect of food sales, whereas pubs and restaurants pay 20pc.
This tax benefit allows supermarkets to subsidise the selling price of beer.
11:01 AM BST
UK property sector’s potential ‘compelling,’ says Morgan Stanley
UK property stocks offer a “compelling” risk to reward, according to Morgan Stanley analysts, despite the sector taking a hit from higher interest rates.
After a tough year, the shares have become oversold, according to analyst Bart Gysens.
He said British property companies generally have low levels of debt and have adequately capitalised balance sheets.
He said: “We are alive to the fact that broader UK exposure and offices as a sub-sector are out of favour, but at current valuation the risk-reward is compelling.”
Morgan Stanley upgraded Hammerson to overweight on the back of progress made with its restructuring, sending the shares up as much as 4.8pc.
UK property stocks have been unpopular this year amid higher interest rates and a rising likelihood of recession.
The FTSE 350 Real Estate Investment Trusts Index is down about 8pc so far this year, compared with the FTSE 350’s overall 0.5pc gain.
However, Morgan Stanley’s optimism toward the sector is not universal, with the broker also downgrading Land Securities and British Land to neutral.
10:41 AM BST
Oil prices hold near 10-month highs after Saudi supply cuts
Oil prices are trading near 10-month highs as new data indicates Saudi Arabian supply cuts offset increased output from the likes of Iran.
The kingdom’s output fell by 170,000 barrels a day, exactly countering a combined increase from Iran and Nigeria, according to a Bloomberg survey.
The Opec cartel collectively pumped 27.8m barrels a day in August, or 40,000 more than the previous month.
The Saudis have persisted with their unilateral cutting of supplies by one million barrels a day, which was introduced in July to shore up global oil prices against a darkening economic outlook in China, the world’s biggest fuel consumer.
The retreat in Saudi production coincides with a revival in its political adversary, Iran, which restored output to a five-year high of just over 3 million barrels a day last month. The Islamic Republic is exempt from Opec quotas because its production has been hit by US sanctions.
Brent crude, the international benchmark, was last down 0.2pc to more than $88 a barrel, having gained 7.5pc in less than a fortnight.
US-produced West Texas Intermediate has slipped 0.2pc to stay above $85.
10:14 AM BST
Pound gains as Hunt says UK on track to halve inflation
The pound is the strongest performing major currency against the dollar after the Chancellor said Britain is on track to halve inflation this year.
Sterling has gained 0.3pc against the greenback to be worth $1.26 after official data on Friday showed the economy recovered faster from the pandemic than previously thought.
It was the strongest performer of any of the G10 group of major currencies
Jeremy Hunt told Sky’s Trevor Phillips on Sunday: “As we move into autumn, I know family budgets are still stretched, but inflation is coming down and now is the time to see the job through.”
The pound has also risen 0.1pc against the euro, which is worth 85p.
09:59 AM BST
Two in five trains delayed in first half of the year
More than two out of five train services in Britain were delayed during the first half of the year, new figures show.
Some 41pc of services were at least one minute late, according to BBC analysis of industry data collated by website On Time Trains.
A further 3pc were cancelled, while 56pc were on time. Stations in Wales had the highest cancellations rate between January and July, at 7pc.
Across English regions, the highest figure was in the North East at 6pc.
Of Britain’s 100 busiest stations, Huddersfield had the highest rate of cancellations (13pc) with more than 5,500 trains due to serve the station axed.
This was followed by Manchester Victoria (10pc), while York, Newcastle and Manchester Oxford Road all had the joint third highest figure (9pc).
All these stations are in the TransPennine Express (TPE) area, which was badly affected by drivers’ union Aslef banning overtime.
Paul Tuohy, of pressure group Campaign for Better Transport, said: “We want people to travel by train so high rates of cancellations are unacceptable.”
09:45 AM BST
Home REIT to revalue estate months after suspending shares
Homeless housing provider Home REIT has appointed global property services firm Jones Lang LaSalle (JLL) to value its entire portfolio months after it was rocked by a short-seller’s report.
The company, which suspended its shares in January after missing a deadline to publish its annual financial report, said the earliest it was expecting to publish outstanding accounts was not until late 2023.
Home REIT was rocked by a report in November last year from short-seller Viceroy Research which raised several concerns, including the valuation of the company’s assets.
Shares in Home REIT had slumped more than 30pc immediately after the report before hitting a record low in December when the company said its auditor was reviewing Viceroy’s allegations.
Home REIT said JLL would undertake the valuations based on market value on the assumption of vacant possession as of August last year, February this year and August this year.
09:20 AM BST
German exports hit as UK trade slumps
German exports fell again in July after a slight rebound in June, official data showed, as Europe’s largest economy suffered a slowdown in its trade with Britain.
Exports totalled €130.4bn (£111.5bn), a fall of 0.9pc compared with the previous month, according to adjusted figures from federal statistics agency Destatis.
German exports to the United Kingdom dropped by 3.5pc to €6.3bn.
Imports meanwhile were up 1.4 percent compared with June, totalling €114.5bn. The country’s adjusted trade surplus – the difference between exports and imports – fell slightly to €15.9bn.
ING economist Carsten Brzeski said: “Trade is no longer the strong resilient growth driver of the German economy that it used to be, but rather a drag.”
German exports have been lagging for several months as a result of supply chain difficulties, a fragile global economy and stubbornly high inflation.
German inflation dipped slightly to 6.1 percent in August but remained at a level three times higher than the European Central Bank’s target rate.
09:07 AM BST
Recession to plunge 7,000 businesses into insolvency per quarter, think tank warns
More than 7,000 businesses could become insolvent every three months next year, a think tank has warned, as it forecast Britain will tumble into recession.
Companies will go under as interest rates continue to rise, pushing up debt repayments to unsustainable levels for some businesses, according to the CEBR.
It warned Britain will be in recession after contractions in the final three months of this year and first quarter of 2024.
However, it said the Bank of England may start to cut interest rates next year in an attempt to “restimulate demand” in the economy, although rates will “still stand far above recent norms for some time”.
There were over 6,700 business insolvencies in Britain in the three months to June, which was more than double what was seen in a typical quarter during the pandemic.
It is also 50pc higher than the same quarter in 2019, with the number of quarterly insolvencies averaging 4,100 between 2015 and 2019.
08:49 AM BST
Swiss economy stalls amid German struggles
Switzerland’s economy stalled in the second quarter as its manufacturing sector fell victim to waning global demand and the ripple effect of weaker growth in Germany.
Gross domestic product, adjusted for large sports events, was flat in the three months through June after a 0.9pc jump at the start of the year. Economists anticipated an increase of 0.1pc in a Bloomberg survey.
Switzerland’s State Secretariat for Economic Affairs said:
The challenging international environment is weighing on the cyclically sensitive industrial sectors such as mechanical engineering and metal construction.
This was also reflected in a broad-based decline in goods exports.
The numbers indicate the Swiss economy is suffering knock on effects from the woes of its largest trading partner: Germany.
A survey of purchasing managers in Switzerland indicated there has been contraction in manufacturing since January.
08:26 AM BST
Miners lift FTSE 100 amid China’s bid to boost economy
The FTSE 100 opened higher after China rolled out new measures to prop up its stuttering economy, giving a boost to mining stocks.
The exporter-heavy index has gained 0.5pc, while the mid-cap FTSE 250 index has risen 0.3pc.
Industrial metal miners rose as much as 1.8pc, leading sectoral gains.
China stepped up measures on Friday to boost the country’s faltering economy, with top banks paving the way for further cuts in lending rates and reports that Beijing plans further action including relaxing home-purchase restrictions.
London Stock Exchange Group rose 0.1pc amid reports that it plans for a blockchain-based digital assets business.
CMC Markets said Albert Soleiman had been appointed as its chief financial officer, initially sending its shares up 2.8pc before falling back to be flat.
Wood Group said it had signed a new agreement valued at around £262m for North Sea operations with Harbour Energy. The companies rose 1.2pc and 1.1pc, respectively.
08:18 AM BST
Ergomed surges after private equity takeover offer
Pharmaceutical services provider Ergomed has agreed to a private equity takeover that values the business at £703.1m.
Shareholders in the Guildford-based company will receive 1,350p per share under the cash acquisition by Permira, which is a 28.3pc premium on Friday’s closing price.
John Dawson, senior independent director of Ergomed, said the offer “fairly reflects the exceptional quality of the Ergomed business, its people and its future prospects”.
Its shares have surged by 26.8pc in early trading.
08:06 AM BST
FTSE 100 opens higher
UK markets opened higher amid increasing bets that the Federal Reserve was finished raising US interest rates, and amid hopes the steady drip feed of stimulus from Beijing will stabilise the Chinese economy.
The FTSE 100 was 0.6pc higher at 7,509.75 while the midcap FTSE 250 climbed 0.3pc to 18,599.24.
07:54 AM BST
Gas prices climb amid shrinking Norwegian output
European natural gas prices has extended last week’s gains after outages in Norway reduced supplies to Britain and the continent.
Benchmark Dutch futures jumped as much as 5.3pc in early trading after flows from Norway, Europe’s top producer, dropped to the lowest since at least 2015 over the weekend.
Output remains less than half the country’s total capacity.
While European demand remains muted and winter storage sites are nearly full, the dip in supplies adds nervousness to a market already rattled by risks of strikes in Australia.
Three fields in Norway have halted supplies since Saturday for works not previously notified to traders.
It comes as the market was already contending with a shutdown of the giant Troll field as well as other facilities.
Dutch front-month futures, Europe’s gas benchmark, traded 3pc higher at more than €36 a megawatt-hour. The UK equivalent contract added 4.5pc.
07:47 AM BST
Air traffic control chaos ‘still not explained,’ complains Ryanair
Budget airline Ryanair said more than 350 flights were cancelled on August 28 and 29 due to the air traffic control (ATC) failure, impacting 63,000 of its passengers.
The Irish carrier said the ATC failure – which caused widespread travel disruption last week and left passengers stranded – “has still not been explained”.
Ryanair carried 18.9m guests in total last month, up 11pc on a year earlier, it added.
Meanwhile, Hungarian low-cost airline Wizz Air said it carried 6.1m passengers in August, up 23.9pc on the same months last year.
07:42 AM BST
Wood wins £262m contract with largest North Sea oil producer
Consultancy and engineering firm Wood has won a $330m (£262m) contract with Harbour Energy, the biggest producer of oil and gas in the UK’s North Sea, the companies announced.
Wood said that under the new agreement it would provide a series of services to Harbour, including helping to operate and maintain its offshore sites and aiding the company with procurement and construction.
The initial five-year contract has the option to be extended, once a year, for another five years. It will “support the employment of hundreds of people,” Wood said.
Wood executive president of operations Steve Nicol said: “We have worked on North Sea assets for more than 50 years and excel in designing and managing the complexity of energy infrastructure while at the same time seeking to minimise associated emissions.”
07:37 AM BST
Good morning
Thanks for joining me. European car manufacturers are being forced into a price war with Chinese companies as the EU pushes ahead with plans to ban combustion engines, the boss of BMW has warned.
BMW chief executive Oliver Zipse has said he considered China entering the European market as an “imminent risk” after the development of its electric car market over the last 15 years enveloped much of the world’s battery supply chains.
He said that companies like BMW will likely be shielded from competition from China’s manufacturers, which will target buyers of cheaper vehicles.
Speaking ahead of the annual IAA Mobility conference in Munich, Mr Zipse said: “The base car market segment will either vanish or will not be done by European manufacturers.”
It comes after BYD, China’s biggest electric carmaker, declared war on Western rivals by calling on the country’s auto manufacturers to unite and “demolish” their competition.
In February, the European Parliament voted to approve a new law banning the sale of petrol and diesel cars from 2035. In Britain, the Government plans to ban the sale of new cars powered solely by petrol and diesel from 2030.
5 things to start your day
1) Scramble to secure more power for Rishi Sunak’s supercomputer lab | Overloaded grid risks stalling PM’s bid to establish Britain as an international AI hub
2) ‘Cost of owning crisis’ as 50,000 fall into negative equity | Affected homeowners face difficulty selling or remortgaging as house prices plunge
3) Britain losing £750m from Chinese holidaymakers because of tourist tax | Shoppers are travelling to France, Italy and Spain instead, report finds
4) Gatwick second runway won’t clash with net zero, says airport chief | Stewart Wingate insists expansion will boost economy, as Rishi Sunak prepares to reject climate advice
5) The tycoons building an empire out of Britain’s bust beer brands | After first rescuing Black Sheep, the financiers have swooped on more struggling craft brewers
What happened overnight
Stocks were higher in Asia after Wall Street was boosted by a report that signalled the US jobs market, while still healthy, is showing some signs of cooling.
That supported investors’ hopes that the Federal Reserve may soon ease up on its campaign to slow the U.S. economy by raising interest rates.
“It appears that global markets are primed to be smitten with the idea of a ‘Nirvana’ Fed tightening outcome, entailing the ‘immaculate dis-inflation’ that does not cause employment pain,” Tan Boon Heng of Mizuho Bank said in a commentary.
Fresh stimulus from China’s financial regulators for the beleaguered property sector also supported buying. They have cut down-payment requirements for first and second-time home buyers and lowered rates on existing mortgages, noted Yeap Jun Rong of IG.
Hong Kong’s Hang Seng index jumped 2.4pc to 18,828.91 while the Shanghai Composite index added 1pc to 3,166.62.
Tokyo stocks ended higher, with the benchmark Nikkei 225 index adding 0.7pc to close at 32,939.18, while the broader Topix index closed up 1pc to a fresh 33-year high of 2,373.73.
In Seoul, the Kospi edged 0.2pc higher, to 2,569.52. Sydney’s S&P/ASX 200 added 0.5pc to 7,312.60.
Shares also rose in Taiwan and Southeast Asia.
US markets will be closed today for the Labor Day holiday.