Shares in Moderna surged by close to 100% in pre-market trading on 19 August 2026 after the biotechnology company and pharmaceutical giant Merck announced that their personalised mRNA cancer vaccine had met its main goal in a phase 3 trial for melanoma. Merck's stock rose around 9% on the same news, according to Morningstar/MarketWatch, marking the first time an individualised neoantigen therapy has produced a positive late-stage readout.
Axel Rudolph, chief technical analyst at IG, said the result was the breakthrough investors had been waiting for.
Moderna has delivered the breakthrough investors have been waiting for, with its personalised mRNA melanoma vaccine producing a positive Phase III result and becoming the first mRNA cancer therapy to clear a late-stage trial.
The vaccine helped patients stay cancer-free for longer and showed that mRNA treatments could work against cancer, not just infections. The shares were already up strongly this year, but today's surge reflects the possibility that melanoma could prove to be the platform's pivotal proof of concept. There are still important questions around the size of the benefit and overall survival, but this is a major milestone that could transform Moderna's longer-term growth story.
What exactly did the trial find?
The therapy, known in trial documents as mRNA-4157 (V940) and also referred to as intismeran autogene, works by targeting neoantigens — markers unique to a patient's own tumour that can be recognised by the immune system. According to CNBC, the phase 3 study enrolled more than 1,100 patients with higher-risk or advanced melanoma whose visible cancer had already been surgically removed, and the vaccine was given alongside Merck's immunotherapy Keytruda. Morningstar/MarketWatch reported that the companies detected no new safety signals during the trial.
Professor Georgina Long, the study's principal investigator, medical director of Melanoma Institute Australia and chair of Melanoma Medical Oncology and Translational Research at the University of Sydney, described the findings as highly significant.
Today's results represent a landmark moment for adjuvant melanoma treatment.
The phase 3 trial began in 2024 after an earlier study suggested the combination could dramatically cut the risk of melanoma returning.
How does this compare with earlier results?
The phase 3 data builds on encouraging signs seen well before this week. Five-year follow-up results presented earlier in 2026 had already shown the combination reduced the risk of recurrence or death by 49% compared with Keytruda alone in a phase 2b study, according to NPR. That same follow-up found 68.8% of patients on the combined treatment remained cancer-free, against 49.1% of those given Keytruda alone.
What happens next?
Moderna and Merck have said they intend to engage with regulators to discuss the pathway toward approval for the experimental vaccine, Morningstar/MarketWatch reported. No date has yet been given for a formal filing.
Why are bond yields falling after the US Treasury's intervention?
US government bond yields fell sharply after Treasury secretary Scott Bessent announced the department would more than double the size of its debt buyback operations, a move aimed at calming markets after yields had surged to levels not seen in almost two decades. The accelerated buyback programme will focus on the 10- to 20-year and 20- to 30-year segments of the market, with the maximum size of buyback operations rising from $2bn to at least $4bn.
Yields dropped immediately following the announcement while stock futures jumped. The benchmark 10-year Treasury bond fell 6 basis points to 4.647%, while the 30-year "long" bond tumbled 9 basis points to 5.196%. A basis point equals 0.01%, and bond yields move in the opposite direction to prices.
Neil Wilson, investor strategist at Saxo UK, said the move amounted to an implicit signal from the administration.
Call it the Bessent Put...Kevin Warsh's Fed might not want to give forward guidance on rates but Treasury and Bessent clearly do!
We have seen huge move in bonds with the curve sharply flattening as the US Treasury announced upscaled buybacks to support the long end of the curve. It's provided some immediate relief to the long end of the Treasury curve and eased some of the pressure building up lately.
This is probably more about the signal the administration wants to send to the market than the size of the operation – it's small potatoes vs the $40tn US government debt. I see it as a very strong sign that the Treasury has decided higher US yields are unacceptable, and that the recent blowout in the long end is undesirable and needs counteracting by means other than a) raising short-term rates to re-anchor expectations or b) reining in fiscal drift. Clearly Donald is not happy yields have blow out...
Treasury said it is increasing, by at least double, the size of liquidity support buyback operations for longer-dated nominal coupon securities, ie across the 10-30 year range where buyers have been absent for at least a month.
These operations are a kind of mini- or quasi-QE by supporting prices and lowering yields, resembling Fed asset purchases albeit they don't work the same way; the effect seems to be similar. It resembles Operation Twist by seeking to support the long end and improve liquidity, which could put more pressure on the USD if the market interprets this as meaning easier financial conditions because it allows the Fed to avoid a monetary policy response and implies official support for the Treasury market; or in essence fiscal dominance.
Wilson also warned that the move could complicate the Federal Reserve's task.
Federal Open Market Committee minutes coming up later...but if Kevin Warsh didn't want to take signals from markets then how does this help? Clearly this clouds the picture for the Fed.
The turmoil follows a period in which government borrowing costs across major economies climbed to multi-decade highs. Our earlier coverage detailed how bond yields in the US, UK, Japan, Germany and France hit multi-decade highs on 18 August 2026 after the US-Iran ceasefire lapsed and oil prices climbed above $90 a barrel, while a related report noted that long-term borrowing costs also rose amid inflation and AI investment concerns. That spike itself followed an earlier surge, when UK borrowing costs hit their highest level since 2008 in March 2026 amid expectations of multiple interest rate rises.
Has calm returned to markets since the intervention?
A degree of stability has returned to government bond markets following the rout of recent days, with European stock indices broadly flat to moderately higher. The 10-year US Treasury yield was down 2.2 basis points at 4.684%, while the 30-year yield had eased 1.4 basis points to 5.271%. In Britain, the 10-year gilt yield slipped 2.6 basis points to 5.049% and the 30-year gilt yield fell 2.1 basis points to 5.805%.
Concerns over the fading prospects of a permanent resolution to the Iran conflict, whose ceasefire expired on Monday, combined with worries about rising government borrowing across advanced economies — partly driven by higher defence spending — had pushed yields sharply higher in recent days, raising governments' borrowing costs. In oil markets, global benchmark Brent crude rose 51 cents, or 0.6%, to $91.53 a barrel, its highest in three weeks, as traders weighed the uncertain status of shipping through the Strait of Hormuz. Donald Trump said on Tuesday that no talks were under way with Iran and that the strait remained open, while Tehran maintained the waterway was closed.
On stock markets, London's FTSE 100 was down nearly 10 points at 10,718, little changed from the previous session, while Germany's Dax was flat and France's CAC edged up 0.3%.
How does rising inflation affect Andy Burnham's cost of living plans?
The rebound in UK inflation, driven by higher household energy bills, underscores the scale of the challenge facing prime minister Andy Burnham as he seeks to shield households from a fresh squeeze on living standards this autumn, according to analysis from our economics editor.
July's rise in inflation is likely to be the first of several increases. The jump from 2.6% in June was driven mainly by a rise in Ofgem's quarterly price cap, and was only partly offset by cheaper fuel prices — a knock-on effect of easing hostilities in the Middle East after Donald Trump announced a memorandum of understanding with Iran in June. Fuel prices have since risen again as hopes of a lasting resolution to the conflict have faded.
Burnham's early decision to act on household energy costs is intended to ease pressure on budgets, though it risks being overwhelmed by broader price increases. Food prices have so far remained subdued despite the conflict, rising at an annual rate of just 1.3% in July, down from 1.7% the previous month — though further increases are considered likely given the extreme heat and drought seen across the summer.
How much could energy bills rise this winter?
Household energy bills across Great Britain are forecast to reach a three-year high this winter, as the impact of the Middle East conflict outweighs Burnham's cut to the VAT rate on household electricity. Analysis from energy consultancy Cornwall Insight suggests the price cap is on track to rise by 4% from October, taking the typical annual bill to £1,729 for the final quarter of 2026 under Ofgem's newly updated definition of a typical household — up from £1,663 currently.
Under Ofgem's previous method of calculation, the average annual bill would rise to £1,941, up from £1,862, which would be the highest level since July 2023. The increase reflects soaring energy market prices linked to the Middle East conflict, compounded by greater use of costly gas-fired power generation during heatwaves across Europe. The rising cost of gas is expected to more than offset the new prime minister's promise to cut VAT on household electricity bills from October, a measure intended to reduce typical bills by around £45 a year.
What is happening to rents and house prices?
Growth in private rents across the UK has accelerated even as house price inflation slowed sharply at the start of the summer, according to official figures from the Office for National Statistics. The average UK home rose in value to £272,000 in June, with annual growth easing to 2%, down from 3% in May. Price growth has been weaker this summer than over the same period last year, following the end of the stamp duty tax break in England and Northern Ireland.
Average private rents rose 3.7% to £1,393 in the year to July, up from an annual rate of 3.3% in June. Average rents reached £1,451 in England (up 3.8%), £843 in Wales (up 4.5%) and £1,016 in Scotland (up 1.7%) in the 12 months to July, while in Northern Ireland average rents rose to £875 (up 2.3%) in the year to May. Within England, annual rental inflation was highest in the North East at 6.3% and lowest in the South East at 2.9%. Average house prices rose to £293,000 in England (up 1.8%), £213,000 in Wales (up 1.8%) and £195,000 in Scotland (up 2.3%) in the year to June 2026.
Tom Bill, head of UK residential research at Knight Frank, linked the rental increases to recent tenancy reforms.
Rents are being pushed higher as the unintended consequences of the Renters' Rights Act play out. Some landlords have left the sector, which has reduced supply, while others have increased asking rents to reflect the additional financial risks they face. The consequences may be unintended, but they were not unexpected, and a policy designed to tip the balance of power towards tenants is adding to the financial pressures they already endure.
House price growth is slowing to zero as borrowing costs remain high and uncertainty surrounds which taxes will be increased in the autumn Budget.
Weakness in the labour market means the Bank of England is unlikely to hike rates any time soon but almost six months into the Middle East conflict mortgage rates are still around a percentage point higher than they were before it started. A seasonal bounce in activity may be more detectable in autumn than it was in spring as rates stabilise, but that will also depend on the extent of any pre-Budget speculation and overall we expect prices to be largely flat this year.
There was some modest relief for borrowers, with Moneyfacts reporting that both two- and five-year fixed mortgage rates edged down slightly. The average two-year fixed residential mortgage rate stood at 5.60%, down from 5.61% the previous working day, while the average five-year fixed rate was 5.63%, down from 5.64%.
Why has a dog food brand recalled its products?
Dog food brand Years has recalled all of its fresh meals after reports that a recipe change may have caused an eye condition in some animals that can lead to sight loss if untreated. The company told owners to stop feeding its fresh meals to their dogs immediately, and not to feed them to other animals or donate or sell them.
Responding to reports of pets failing to respond to treatment and, in some cases, losing their sight, Years said in a statement:
The picture is mixed. Some [ophthalmologists] report dogs responding well to treatment … others have seen limited or slower responses.
Years operates a subscription service delivering personalised meals, and its products are also sold through some retailers. The company said that as of the early hours of Wednesday it had received reports from 192 customers of "potential, yet unverified" eye issues out of roughly 40,000 customers, up from 57 suspected cases reported as of the previous Sunday.
Why is a Chinese carmaker expanding its UK research operations?
Chinese carmaker Chery, which owns the Jaecoo and Omoda brands, is expanding further into the UK with a major new research and development centre in England. The company said the new site was "the next step" in its long-term British plan, as it also moves toward manufacturing cars domestically in the UK.
Chery's UK sales are growing rapidly: in July, its Chery, Omoda and Jaecoo brands accounted for nearly 8% of the UK car market, up from 3% a year earlier, according to the Society of Motor Manufacturers and Traders. The Jaecoo 7, a hybrid electric model built in China and nicknamed the "Temu Range Rover" for its low price and array of technology features, has become one of the brand's best-selling models in Britain, though all its cars currently have to be imported. Chery, which is part state-owned, is reported to be exploring building cars at a Sunderland plant, a move that would mark the start of mass-market Chinese car production in Britain from 2027.
The new R&D facility is due to open in late autumn. Gary Lan, chief executive of Chery's UK business, said the company had been patient in its approach to entering the market.
We waited over 20 years for the right time to enter this market, and our ambition has always gone much further than simply bringing vehicles here.
The facility will be based at UTAC Millbrook, an existing vehicle testing centre between Bedford and Milton Keynes used by engineering and motorsport firms as well as the Ministry of Defence. The site gives Chery access to more than 70 kilometres of purpose-built test tracks to adapt its vehicles for UK roads, and the company plans to later use it for work on self-driving cars and artificial intelligence.
Why did shares in a Chinese robotics firm surge on their stock market debut?
Unitree, the world's largest maker of humanoid robots, saw its shares surge by more than 600% on their Chinese stock market debut before gains were pared back to around 500%. The company, officially known as Yushu Technology Co, saw shares rise as high as 1,100 yuan (£120.39), up from an initial public offering price of 150.8 yuan.
Unitree's robots have achieved global recognition, including running at Olympic speeds and appearing as backup dancers for pop stars. Investors have been searching for winners as robotics development becomes one of the most closely watched growth sectors. Founded in 2016, Unitree shipped more than 5,500 humanoid robots last year, and analysts project the market for human-like robots could grow from around $2bn in 2025 to $300bn by 2035.
Demand from Chinese retail investors for the IPO was exceptionally strong, with the portion of shares set aside for non-professional investors overd by thousands of times. Unitree is one of only a handful of listed humanoid robot makers globally; its main rival, AgiBot, remains private, while smaller competitor UBTech is listed in Hong Kong. At least half a dozen other Chinese humanoid robotics firms, including Deep Robotics and Leju Robotics, are reported to be preparing for public listings.
Why did Oxford Nanopore shares rise?
Shares in Oxford Nanopore, the Oxford University spinout that develops molecular sensing technology, jumped more than 7% after the company reported higher half-year revenues and a smaller loss. The company's devices are used to identify viruses and detect genetic variants in humans, animals and plants.
