Prudential to return $2bn to shareholders, SIG warns on profits

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The FTSE 100 is expected to open 10 points lower on Monday, having closed down 0.42% on Friday at 8,237.72.

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Prudential on Monday said it would return $2bn to investors via a share buyback to be completed by mid-2026. "Progress towards our financial objectives will increase the potential for further cash returns to shareholders. Our dividend policy remains unchanged, with the board continuing to expect the 2024 annual dividend to grow in the range of 7-9%,” the company said.

Insulation and building products group SIG has delivered a profit warning after a challenging first half, as ongoing softness in the building and construction sector across Europe resulted in subdued demand across the majority of its end-markets. The company said it now has a “more cautious view of the timing of any potential market improvements during H2”, and expects full-year underlying operating profit to be in the range of £20-30m, below the current consensus range of £36.7-43m and the £53.1m reported last year.

GSK announced the European Medicines Agency's acceptance of its application to expand the use of ‘Jemperli’, or dostarlimab, combined with standard chemotherapy to all adult patients with primary advanced or recurrent endometrial cancer, with approval expected in the first half of 2025. The FTSE 100 pharmaceuticals giant said the application was based on the recent phase three trial results, showing significant benefits in progression-free and overall survival for the broader patient population. Separately, it also announced that Japan's regulator has approved ‘Omjjara’, or momelotinib, for treating myelofibrosis, marking the fourth major regulatory approval for the drug following earlier approvals in the US, the EU and the UK.

Newspaper round-up

The outgoing chair of John Lewis has insisted that the retail group is “back on track” and “more fit for the future” with an improving financial position enabling it to spend money refurbishing Waitrose supermarkets and opening convenience stores. Sharon White, who will retire as chair of the John Lewis Partnership in September, said the upmarket Waitrose brand was “underrepresented in convenience” as it sought new avenues of growth. – Guardian

The UK’s drive to replace gas boilers with heat pumps is being stymied by a lack of consumer demand and a shortage of skilled installers to fit heat pumps where they are wanted, according to an industry survey. The most comprehensive poll of heat pump installers to date found that the biggest barrier was the low number of households choosing to get one fitted. – Guardian

Rishi Sunak’s Covid start-up fund has pushed dozens of companies into liquidation in an attempt to recover taxpayer loans. The Future Fund has issued winding up petitions to 32 companies that it backed during the pandemic, according to court records. In many cases it has resulted in the business being ordered to cease trading by courts and the company wound up without the fund recouping its investment. – Telegraph

The EU has clinched last-ditch talks with Beijing over plans to impose higher tariffs on Chinese imports of electric cars amid fears of a looming tit-for-tat trade war. Trade ministers from China and the European Commission agreed to start negotiations to settle a dispute over EU plans to raise tariffs on electric vehicle imports from China to up to 48pc. – Telegraph

Burnout, toxic management and a lack of meaningful work are three of the main reasons that workers “quietly quit”, according to an expert who has studied the phenomenon. Employees dubbed “quiet quitters” are so-called because they do the minimum work required in their job and do not go above and beyond in their efforts. Research from Gallup found this month that the UK’s employees were among the least motivated by their work in Europe, with only 10 per cent saying that they were engaged in their job. The lack of engagement in work is estimated to cost the UK economy 11 per cent of GDP, or £257 billion annually. – The Times

US close

Stocks closed in a mixed state on Wall Street on Friday, with the Dow Jones Industrial Average up 0.04% at 39,150.33.

The S&P 500 slipped 0.16%, however, to 5,464.62, as the Nasdaq Composite lost 0.18% to 17,689.36.