Greggs set to hit targets, AstraZeneca settles most Nexium and Prilosec claims

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Sharecast News | 03 Oct, 2023

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The FTSE 100 is expected to open 14 points lower on Tuesday, having closed down 1.28% on Monday at 7,510.72.

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High street bakery chain Greggs said it expects to hit targets this year after a solid third quarter, with inflation beginning to ease. However, the company lowered its guidance for net new site openings, saying it now expects its portfolio to grow by between 135 and 145 this year, down from an earlier forecast of 150.

AstraZeneca has agreed to settle product liability litigations related to its drugs Nexium and Prilosec, it announced on Tuesday, resolving pending claims in various US courts, though the specific settlement terms remain confidential. Despite admitting no wrongdoing and perceiving the claims to be without merit, the company said it would pay $425m, a provision for which has been accounted for. While the settlement addressed most claims, one case was still pending in Louisiana, with a trial set for 15 April 2024.

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Food prices dropped in the UK in September for the first month in almost two years, according to retail industry figures, offering consumers some respite amid the cost of living crisis. The British Retail Consortium (BRC) said price reductions for dairy, margarine, fish and vegetables and fierce supermarket competition helped to bring down the cost of an average food basket by 0.1% compared with the previous month. – Guardian

Employers who spy on staff have been threatened with fines by the privacy watchdog amid a rise in home working. The Information Commissioner’s Office (ICO) has said it will “take action” against companies that conduct “excessive” monitoring of workers following an uptick in bosses tracking calls, messages and keystrokes since Covid. – Telegraph

Artificial intelligence will eventually enable people to live to 100 and work just three-and-a-half days a week, the boss of Wall Street’s biggest bank has said. Jamie Dimon, chief executive of JP Morgan, made the forecast amid fears that generative AI technology could cause significant disruption to workplaces, with some even predicting that it poses an existential threat to humanity. - Telegraph

Further questions will be asked of the quality of Home Reit’s tenants after the self-styled “landlord for the homeless” collected only 3 percent of rent due last month. In a monthly update, the company also warned that it expected more of its tenants to go bust. – The Times

Rising costs hit annual profits at Walker’s Shortbread, even as the family-owned biscuit manufacturer increased its sales at home and abroad last year. Growth was especially strong in Britain and the United States, with group turnover rising by 16 per cent to £164.6 million. Domestic sales increased by 23 per cent to £77 million, while exports rose by 10 per cent to £87.6 million, according to accounts filed for 2022. The company sells overseas in 100 markets. It also noted an uplift in travel retail sales as more passengers returned to airports. – The Times

US close

US stocks finished flat on Monday despite a last-minute deal in Washington to avert a government shutdown, as bond yields surged on the back of yet more promising economic data.

The Dow Jones Industrial Average was 0.2% lower at 33,433, the S&P 500 finished flat at 4,288, while the Nasdaq gained 0.7% to 13,308.

The yield on a 10-year Treasury note jumped 11.3 basis points to 4.692%, touching an earlier high of 4.707%, while the 30-year bond yield rose 9.4% to 4.797% – their highest levels since October 2007 and April 2010, respectively.

Over the weekend, the US government narrowly avoided a shutdown, passing a 45-day Continuing Resolution that shifts the funding deadline to 17 November. However, many felt like the short-term fix was inevitably kicking the can further down the road and that political brinkmanship would begin to heat up again soon.

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