AstraZeneca to offload nasal spray rights, Vodafone secures raft of India spectrum

London open

The FTSE 100 is expected to open 20 points higher on Friday, after closing down 0.47% at 6,999.96 on Thursday.

Stocks to watch

Pharmaceutical giant AstraZeneca agreed to divest rights outside the US of its nasal spray to Johnson & Johnson affiliate Cilag GmbH International for $330m. AstraZeneca will not maintain an ongoing interest in the Rhinocort Aqua nasal spray as part of the deal, which is subject to closing conditions, and is expected to be completed in the final quarter of the year.

Vodafone announced on Friday that its subsidiary, Vodafone India, has acquired spectrum in all its key telecom circles in the latest spectrum auction for a total cost of INR 202.8bn. The FTSE 100 firm said the new spectrum “significantly enhances” the coverage, capacity and speed of Vodafone India's 4G data services in its key circles, complementing existing high-quality 2G and 3G voice and data capabilities. It now has 17 circles with 4G capability in the country, covering 91% of the subsidiary's total revenues and 94% of mobile data revenues.

Electra Partners’ portfolio company AXIO Group has received a binding offer from M3 Inc. to purchase Vidal Group, a European provider of reference drug information for healthcare professionals, for €100m. The proposed transaction, which remains subject to certain conditions, would be the fourth major realisation from AXIO's portfolio.

Newspaper round-up

A “fat finger” error by a trader or computerised chain reaction was thought responsible as the pound plunged to a new three-decade low during early trading in Asia on Friday – adding to the huge losses sterling had already suffered amid speculation that Britain is heading for a “hard Brexit”. The pound fell almost 10% at one point to US$1.1378, prompting confusion among traders who were struggling to identify any news or market event that could have been to blame. - The Guardian

Snap, the company behind the popular messaging app Snapchat, is laying the groundwork for a $25bn flotation next year. It is drawing up paperwork for an initial public offering that could take place as early as March, according to The Wall Street Journal. Snapchat users share photos and short videos with each other. The images, or snaps, self-destruct within a time frame picked by the sender. Snap makes money from posting advertisements on Snapchat. - The Times

Saudi Aramco is expected to publish its full annual accounts for the first time, as the state-controlled oil producer seeks to boost transparency in preparation for an initial public offering. The company, which pumps more than 10 per cent of the world’s crude oil, is preparing to list 5 per cent of its shares in 2018, offering international investors the chance to own a stake in what is easily the world’s biggest oil company. - The Times

US close

US stocks finished virtually flat on Thursday, as investors kept their wallets firmly shut ahead of Friday’s non-farm payrolls report.

The Dow Jones Industrial Average was last down 0.07% at 18,268.50 points, the S&P 500 added 0.05% to 2,160.77 points and the Nasdaq 100 edged down 0.08% to 4,873.92 points.

Oil prices were firmly higher after data from the Energy Information Administration showed another drop in US weekly crude inventories.

West Texas Intermediate crude rose above the $50 per barrel mark for the first time since June, up 1.41% to $50.54 per barrel, while Brent crude gained 1.37% to $52.58 per barrel.

Meanwhile, the main event this week is Friday’s non-farm payrolls report as the Federal Reserve considers the health of the labour market in deciding the timing of the next interest rate hike.

Economists expect the report to show US employers added 170,000 jobs in September following a 151,000 increase in August. The unemployment rate is forecast to remain at 4.9%.