Rio Tinto holds production guidance, GSK upbeat on gepotidacin trial
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The FTSE 100 is expected to open four points lower on Wednesday, having closed down 1.82% on Tuesday at 7,820.36.
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Mining giant Rio Tinto on Wednesday held annual production guidance, despite a sharp fall in first-quarter iron ore shipments and production. Iron ore production from Western Australia Pilbara assets fell 11% quarter on quarter to 78 million tonnes. Shipments were down 5% year on year to 78 million tonnes, and were 10% behind the fourth quarter. Rio cited weather disruptions leading to a lower stock drawdown compared to last year as the cause.
GSK announced on Wednesday that a phase three trial demonstrated that gepotidacin, a potential first-in-class oral antibiotic, achieved a microbiological success rate of 92.6% in treating uncomplicated urogenital gonorrhoea, showing non-inferiority to the leading combination treatment. The FTSE 100 pharmaceutical giant said gepotidacin's safety profile was consistent with previous trials, with mild or moderate gastrointestinal adverse events reported. With gonorrhoea resistance on the rise globally, it said the findings showed gepotidacin as a promising new treatment option amid growing antibiotic resistance.
Newspaper round-up
Rising energy prices and disruption to international shipping risk “stalling” declines in inflation in leading economies, the International Monetary Fund has warned, telling central banks that the “last mile” of their battle against price rises may be the hardest. In its latest assessment of global financial stability, the IMF said markets were vulnerable to another round of volatility if investors continued to push back their expectations for interest rate cuts this year, leading to falls in bond and stock prices. - The Times
The owner of Moët & Chandon, Krug and Veuve Clicquot has been left with a post-pandemic hangover after a sharp drop in champagne sales. French luxury goods giant LVMH suffered a 16pc slump in wine and spirit sales to €1.4bn (£1.2bn) during the first quarter of 2024. The company, which also owns Dom Pérignon, on Tuesday said this was driven by “the normalisation of post-Covid demand”. It follows years of record demand for champagne during and immediately after the pandemic. - Telegraph
A whistleblower has urged Boeing to ground every 787 Dreamliner jet worldwide after warning they are at risk of premature failure ahead of a high-profile hearing on Capitol Hill. The planemaker has been grappling with its latest crisis since a cabin panel blowout in January raised fresh questions about the production of its bestselling commercial jet, the 737 Max. - Guardian
A leading seller of contracts-for-difference made about £25 million betting against its own customers during the first three months of the year. Plus500 said that client losses had given it a $30.6 million boost in the first quarter, helping to push adjusted profits at the group in the period up by 2 per cent year-on-year to $102.6 million. Revenue rose 4 percent to $215.6 million. The London-listed, Israel-based Plus500 operates a popular online platform that enables punters to trade contracts-for-difference, which are derivatives that are used to place leveraged bets on the direction of prices in financial markets. - The Times
Donald Trump’s social media empire has announced plans to launch a streaming platform. Its shares continued to fall. Trump Media & Technology Group, owner of Truth Social, has come under pressure since its stunning stock market debut last month left the former president with a vast stake worth about $4.9bn on paper. - Guardian
US close
US stocks finished mixed on Tuesday after bond yields climbed on the back of comments from Federal Reserve chair Jerome Powell, who said the central bank needed more confidence that inflation was on a downward trend before cutting interest rates.
The Dow snapped a five-day losing streak to finish 0.2% higher at 37,799, bouncing back after finishing at a three-month low the previous session. However, the S&P 500 fell 0.2% to 5,051 and the Nasdaq lost 0.1% to 15,865.
The 10-year US Treasury yield was up 6.4 basis points at 4.672%, its highest level in five months, after Powell said recent economic data – such as three straight months of stronger-than-forecast inflation – "have clearly not given us greater confidence and instead indicate that it is likely to take longer than expected to achieve that confidence".
In a shift in tone compared with recent comments, the Fed chair pushed back on market expectations for two or three rate cuts in 2024 – projections that were discussed by Fed officials at their latest meeting. "Right now, given the strength of the labour market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work," he said.
Also weighing on sentiment were rising tensions in the Middle East after Israel said it had no choice but to respond to Iran's 300-plus missiles and drones that were launched at the weekend.