GSK investment submits transatlantic drug applications, Inmatsat forges two new satellite contracts

London open

The FTSE 100 is expected to open up 39 points on Friday, after closing up 0.32% at 7,543.77 on Thursday.

Stocks to watch

GlaxoSmithKline and its majority-owned specialist HIV company ViiV Healthcare, which is also held by Pfizer and Shionogi as shareholders, announced regulatory submissions to the European Medicines Agency (EMA) and US Food and Drug Administration (FDA) on Friday for a single-tablet, two-drug regimen of dolutegravir and rilpivirine, for the maintenance treatment of HIV-1 infection. The FTSE 100 company said the submissions were based on the SWORD studies that included more than 1,000 patients who previously achieved viral suppression on a three- or four-drug antiretroviral regimen.

Dashing hopes of takeover talks that had emerged earlier in the week, Inmarsat published two announcements on Friday, but these were to reveal two new satellite contracts. The FTSE 250 mobile satellite communications provider issued a contract to Thales Alenia Space to build another of its Global Xpress broadband satellites and has also been signed up by Qatar Airways to provide in-flight broadband to the Middle East megacarrier's passengers.

Newspaper round-up

The richest 0.01% of households, involving those with more than £31m assets, evade paying 30% of their taxes on average, according to an academic study of tax evasion based on data revealed in the Panama Papers and the leaks concerning the HSBC Swiss private bank. Economists, who matched people named in the leaks with public wealth records, found that “the probability to hide assets rises very sharply with wealth”. The paper found that the super-rich evaded more than 10 times as much of their due taxes as the wider population, which on average evaded 2%. – Guardian

Marks & Spencer has pledged to raise £25m for mental health, heart and cancer charities, and halve food waste across its operations by 2025, as it steps up its ethical commitments under its new chief executive, Steve Rowe.Rowe, who took charge of M&S just over a year ago, said the fashion, food and homewares retailer was also “determined to play a leading role” in social change by supporting community projects in 10 cities, including Rochdale, Glasgow, Liverpool and Middlesbrough. – Guardian

Theresa May has pledged to work with the Square Mile to forge a good deal for the financial services community during the Brexit negotiations if she is re-elected as Prime Minister. In an interview ahead of next Thursday’s general election, Mrs May said she wanted to work with major banks and other City firms to ensure that “we can maintain the City as the important presence that it is not just in relation to the UK but in relation to capital markets and financial services internationally.” – Telegraph

Goldman Sachs Group Chief Executive Officer Lloyd Blankfein criticised the United States' decision to withdraw from the Paris climate deal in his first message on Twitter since joining the platform six years ago. Today's decision is a setback for the environment and for the US's leadership position in the world," Blankfein said, adding the hashtag "ParisAgreement." - Telegraph

US close

As Donald Trump pulled the US out of the Paris climate agreement the country's stock indices made like a rising sea level to set new record high water marks on the first day of June, boosted by a wave of data indicating the economy continues to head in the right direction.

The Dow Jones added 135.53 points or 0.65% to finish at a new record close of 21,144.18, while the Nasdaq Composite put on 48.31 points or 0.78% to hit its own record of 6,246.83 and the S&P 500 notched up a new high of 2,430.06 after increasing 18.26 or 0.76%.

After a strong employment report from the ADP, expectations have been heightened for Friday's official non-farm payrolls report, which should be the final element to nail on a rate rise from the Federal Reserve in this month's policy meeting.

But with markets already pricing in close to a 100% chance of a rate rise, there is reason to believe we could see a lower degree of volatility than usual, said analyst Joshua Mahony at IG.

US private sector firms added 253,000 new hires in May, comfortably beating the consensus forecast of 180,000 after a gain of 174,000 in the month before.