GSK makes progress with mepolizumab treatment, Investec full-year profits rise

London open

The FTSE 100 is expected to open flat on Thursday, after closing down 0.25% at 7,503.47 on Wednesday.

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GSK said its mepolizumab treatment met co-primary efficacy endpoints and all secondary endpoints in a double-blind, placebo-controlled study on patients who have a form of vasculitis. Patients treated with mepolizumab had a significantly greater accrued time in remission over the 52-week treatment period compared to placebo, with 28% of patients on mepolizumab achieving remission for at least 24 weeks versus 3% on placebo, GSK said. In addition, a higher proportion of patients in the mepolizumab group were in remission at both weeks 36 and 48 compared to the placebo group (32% vs 3%), GSK said.

Investec reported a 18.5% increase in full-year statutory operating profits to £599.1m which drove a 6.3% rise in statutory earnings per share to 48.3p. That was despite the macroeconomic uncertainty impacting its two key markets, according to the company. Third party assets under management rose 23.9% to £150.7bn on a currency neutral basis. Capital remained in excess of current regulatory requirements, Investec said, adding that it is comfortable with its common equity tier 1 ratio target of 10.0%. The board proposed a final dividend of 13.0p, taking the full-year payout to 23.0p.

Energy network operator National Grid posted its final results for the year to 31 March on Thursday, with its operating profit rising 14% to £4.67bn on an adjusted basis, and its profit before tax improving 13% to £3.56bn. The FTSE 100 firm said total adjusted earnings per share were 73p, a rise of 16%, while its total adjusted earnings per share excluding timing were up 6% at 66.1p. Total group return on equity was 11.7%, dropping from 12.3% in the 2016 financial year.

Burberry reported annual profits at the upper end of expectations and promised investors a new £300m share buyback. On revenue of £2.8bn in the year to 31 March, which had already been announced, the beige-checked fashion house delivered adjusted profits of £462m, which were up 10% at the reported level and down 21% at the underlying level.

Newspaper round-up

Countries seeking a trade deal with the EU should meet European standards on labour law and fair competition, one of the bloc’s most senior officials has said in remarks that reinforce Brexit red lines. Margrethe Vestager, the EU competition commissioner, described the trade agreement with Canada as a model for the future because it enshrined recognition of labour standards, human rights and animal welfare. – Guardian

The Volkswagen chief executive and his predecessor are facing an investigation by German authorities into whether they misled investors by not releasing information about the company’s cheating on diesel emissions tests soon enough. Prosecutors in Stuttgart yesterday formally launched their case against Matthias Müller and his predecessor Martin Winterkorn, who resigned as VW chief executive when the diesel emissions scandal broke in September 2015. The investigation relates to their role as executives in 2015 at Stuttgart-based Porsche Automobil Holding SE, the holding company that controls Volkswagen. PorscheSE chairman Hans Dieter Pötsch is also under investigation.- Guardian

The chairman of Lloyds Banking Group has given the strongest signal yet that chief executive Antonio Horta-Osorio will remain with the bank for the foreseeable future despite speculation about his tenure. Amid continued reports linking the Portuguese banker to the top job at HSBC, Lord Blackwell assured that Mr Horta-Osorio has no intention of leaving the bank in the short term. - Telegraph

US close

Fresh allegations of improprieties in the Oval Office finally provoked a response from Wall Street on Wednesday, sending some traders dashing to buy protection from downside risks.

The Dow Jones Industrial Average ended down 1.78% to 20,606.93, with the S&P 500 shedding 1.82% to 2,357.03 and the Nasdaq 100 off by 2.51% to 5,580.55.

Overnight on Tuesday, The New York Times said US president Donald Trump had asked Federal Bureau of Investigation chief James Comey to "let go" of an investigation into his former national security adviser, Michael Flynn.

IG's Chris Beauchamp sounded a word of prudence, telling clients not to rush to the assumption that Donald Trump was inevitably headed towards impeachment hearings.

"Over-eager bears should tread with care," Beauchamp said.