GSK sinusitis treatment being reviewed in Japan, Diversified Energy core earnings rise
London open
The FTSE 100 is expected to open three points higher on Friday, having closed down 0.46% on Thursday at 7,439.13.
Stocks to watch
Japanese regulators are reviewing a new drug application for GSK's Nucala treatment to be used for the treatment of adult sinusitis, the biopharma giant announced on Friday. The drug, otherwise known as mepolizumab, is already used in Japan to treat bronchial asthma and a rare form of vasculitis (known as eosinophilic granulomatosis with polyangiitis), but GSK's new application is hoped to see it approved as a treatment for chronic rhinosinusitis with nasal polyps.
Diversified Energy on Friday reported increased half-year profits as its hedging policy and higher production offset weaker oil and gas prices. The company said adjusted core earnings rose 26% to $283m, despite a 48% revenue decline to $487m for the six months to June 30 as the average realised sales price fell 52%.
Newspaper round-up
The British defence company BAE Systems is setting up a local entity in Ukraine and has signed deals with its government to help ramp up its supply of weapons and equipment. BAE said it would work directly with Kyiv to explore potential partners for a plan to ultimately produce 105mm light artillery guns in Ukraine and to better understand Ukraine’s requirements. – Guardian
The National Grid has confirmed it will pay households to cut their electricity usage again this winter as part of efforts to keep Britain’s lights on. From November to March, households and businesses will be called on to curb their power usage – by signing up to the so-called demand flexibility service – when the grid is particularly stretched. – Telegraph
Emmanuel Macron’s Government has accused Unilever, Nestle and Pepsico of refusing to pass lower costs on to families as Paris battles to control double-digit food inflation. Bruno Le Maire, France’s finance minister, singled out the multinationals for criticism as he promised measures to “definitively break the price spiral”. – Telegraph
The Canadian tycoon behind HMV was last night finalising a deal to buy the majority of Wilko, the collapsed British homewares retailer. Administrators confirmed that Doug Putman, 39, whose family also owns Toys ‘R’ Us in Canada, had made an offer for 300 of Wilko’s 400 stores, which would secure between 8,000 and 9,000 jobs out of the 12,500 total. – The Times
Potential bidders for the Telegraph newspapers plan to question Goldman Sachs, which is overseeing an auction of the business, over the ownership of a website name seen as crucial to plans for expansion overseas. Telegraph Media Group is understood to have been seeking for years to buy the domain name Telegraph.com, which at present redirects to a page hosting links to various news and advertising sites. It has no connection to the newspapers’ official site, Telegraph.co.uk. – The Times
US close
US stocks gave up early gains on Thursday after a host of mixed economic data, with the S&P 500 ending August with its first monthly loss since February.
Despite a positive start to the trading session, markets swung into the red by midday as the indicators on the labour market and consumer spending started trickling in.
Following four straight days of gains, the S&P 500 fell 0.2% to 4,508 by the closing bell; the Dow Jones Industrial Average finished 0.5% lower at 34,722; while the Nasdaq finished with a modest 0.1% gain to 14,035 – helped by some better-than-expected earnings in the tech sector.
Following the data barrage, economists on the whole still expect the Federal Reserve to hold interest rates steady at its next meeting in September, with only modest increases in inflation likely to deter them from tightening monetary policy again too soon.
As Fed chair Jerome Powell expressed last week, the central bank is taking a data-dependent approach to its decisions and will act "cautiously" in regards to a further rate hike.