Global financial markets plunged into the red on Tuesday after warnings from the boss of Moderna over the efficacy of Covid-19 vaccines against the Omicron variant compared to earlier strains of the virus spooked investors.
The UK’s FTSE100 dropped more than 1 per cent in early trading, hitting its lowest level since the start of October as crude oil futures shed more than a dollar, the Australian currency hit a year low, and Nikkei gave up its gains.
The alarm bells sounded after Moderna chief executive Stéphane Bancel said existing vaccines will be much less effective at tackling Omicron and it could take months for pharmaceutical firms to manufacture new variant-specific jabs at scale.
His comments spurred fears vaccine resistance could lead to more sickness and hospitalisations, prolonging the pandemic.
"There is no world, I think, where (the effectiveness) is the same level . . . we had with Delta," Mr Bancel said.
"I think it's going to be a material drop. I just don't know how much because we need to wait for the data. But all the scientists I've talked to . . . are like 'this is not going to be good.”
His definitiveness appeared to spook markets, with stocks in Asia retreating along with US and European index futures and crude oil.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said the roller coaster ride has resumed on the financial markets following Monday's rally.
"Investors are now strapping themselves in for a volatile ride anxious for any further news which could lift sentiment or send it plunging again, such as the comments from Moderna’s chief executive that current vaccines will struggle with Omicron because of the high level of mutations on the spike protein," said Ms Streeter.
"It’s not known just how less effective they may be, and the waiting game continues as scientists scramble to assess the new variant, but amid this state of uncertainty, nervousness is high, with the FTSE 100 falling 1 per cent in early trade."
European stocks fell more than 1 per cent on Tuesday with the pan-European STOXX 600 dropping 1.3 per cent by 8.15am London time to hit its lowest levels in nearly seven weeks. Germany's DAX, France's CAC 40 and UK's FTSE 100 fell between 1.1 per cent and 1.5 per cent in early trading.
Oil stocks fell 1.6 per cent, tracking a drop in crude prices and bank stocks sank 1.6 per cent to their lowest in more than two months.
"Energy stocks and banks are among the biggest fallers as investors worry about the economic effect of Omicron, as it risks dampening down demand and becoming a significant set-back for global economy. Brent crude fell 3 per cent to $71 a barrel, pulling down energy stocks like BP and Shell by more than 1 per cent in early trade," said Ms Streeter.
Meanwhile, travel stocks shed 1.1 per cent, with British airline easyJet trading nearly flat after reporting softer demand in the first quarter following the emergence of the Omicron variant.
However, the airline was bullish about a recovery in passenger levels, predicting 70 per cent of pre-Covid 2019 levels in the second quarter and a near total recovery by the summer.
Adam Vettese, analyst at multi-asset investment platform eToro, said while easyJet’s full-year loss has come in ahead of consensus, most of its key financial indicators are significantly lower than they were last year.
“The emergence of the Omicron coronavirus variant has dealt a hammer blow to the airline industry just as it was once again finding its feet after 18 long and painful months," said Mr Vettese
“While we’re not sure yet if the latest variant is more deadly than the ones we’ve seen in the past, governments have rushed to close their borders again in a bid to act early and prevent it spreading."
The pandemic-sensitive sectors slumped last week when the Omicron variant was first detected in South Africa, pushing the benchmark STOXX 600 to its worst single-day performance in more than a year on Friday.
Lack of fresh updates on the variant proved to be a relief on Monday, but European stocks are on course to end November with losses of nearly 3 per cent.
The latest dip in the FTSE100 puts the UK's blue-chip index on course for its worst month in more than a year, with monthly declines of 2.8 per cent.
Amid the pessimism about the effectiveness of vaccines, AstraZeneca is among the biggest fallers on the FTSE 100 so far with a drop of up to 2.2 per cent in morning trading.
"Its vaccine has been produced at cost and now investors are clearly wondering if they will ever see a profit from this part of the business," said Ms Streeter.
Omicron - which the World Health Organisation said carries a "very high" risk of infection surges - has triggered global alarm, with border closures casting a shadow over a nascent economic recovery from a two-year pandemic.
While news of its emergence wiped about $2 trillion off the value of global stocks on Friday, some calm was restored at the start of this week with President Joe Biden also helping to soothe the markets when he said the US would not reinstate lockdowns.
Research is still under way to determine if omicron causes the same level of illness as older versions of the virus and whether it can evade protection from vaccines and previous infections.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
More coverage from the Future Forum
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Porsche Macan T: The Specs
Engine: 2.0-litre 4-cyl turbo
Power: 265hp from 5,000-6,500rpm
Torque: 400Nm from 1,800-4,500rpm
Transmission: 7-speed dual-clutch auto
Speed: 0-100kph in 6.2sec
Top speed: 232kph
Fuel consumption: 10.7L/100km
On sale: May or June
Price: From Dh259,900
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
MATCH INFO
Rugby World Cup (all times UAE)
Final: England v South Africa, Saturday, 1pm
SPEC SHEET
Display: 10.9" Liquid Retina IPS, 2360 x 1640, 264ppi, wide colour, True Tone, Apple Pencil support
Chip: Apple M1, 8-core CPU, 8-core GPU, 16-core Neural Engine
Memory: 64/256GB storage; 8GB RAM
Main camera: 12MP wide, f/1.8, Smart HDR
Video: 4K @ 25/25/30/60fps, full HD @ 25/30/60fps, slo-mo @ 120/240fps
Front camera: 12MP ultra-wide, f/2.4, Smart HDR, Centre Stage; full HD @ 25/30/60fps
Audio: Stereo speakers
Biometrics: Touch ID
I/O: USB-C, smart connector (for folio/keyboard)
Battery: Up to 10 hours on Wi-Fi; up to 9 hours on cellular
Finish: Space grey, starlight, pink, purple, blue
Price: Wi-Fi – Dh2,499 (64GB) / Dh3,099 (256GB); cellular – Dh3,099 (64GB) / Dh3,699 (256GB)
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
More on Quran memorisation:
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
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Company%20profile
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Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
