Weir wins £53m Pakistan contract, GSK lung cancer drug gets breakthrough designation

London open

The FTSE 100 is expected to open 32 points lower on Tuesday, having closed up 0.55% on Monday at 8,356.94.

Stocks to watch

Mining tech group Weir has been awarded a £53m contract on the Reko Diq copper-gold project in Pakistan, a greenfield development part-owned by Barrick Gold Corporation. During the first phase of the project, Weir will provide fine grinding, separation and tailings solutions, including its large-format high-pressure grinding rolls (HPGRs). Half of the revenue (£26m) will be recognised in the third quarter, with the remaining orders booked for later in 2024 and 2025.

GSK has received breakthrough therapy designation from the US FDA for GSK5764227, it announced on Tuesdays - an investigational antibody-drug conjugate for the treatment of relapsed or refractory extensive-stage small-cell lung cancer (ES-SCLC). The FTSE 100 pharmaceuticals giant said the designation was based on promising early clinical evidence, and aimed to expedite the development and review of the drug, which could potentially offer a significant improvement over existing therapies. It said patients with ES-SCLC who experience disease progression after chemotherapy typically had poor outcomes and limited treatment options.

Newspaper round-up

Morgan Stanley International chairman Jonathan Bloomer is among those missing after a yacht carrying UK tech entrepreneur Mike Lynch sank off the coast of Sicily during a violent storm, an Italian official has said. Salvatore Cocina, head of the civil protection agency in Sicily, said Bloomer and Chris Morvillo, a lawyer at Clifford Chance, were among the six people missing. Lynch and his 18-year-old daughter, Hannah, were also unaccounted for as of late Monday. – Guardian

Ministers have approved London City airport’s application to expand, in a decision that has disappointed climate campaigners. The airport submitted a proposal to increase capacity from 6.5 million to 9 million passengers a year by putting on more weekend and early morning flights. Local campaigners and Newham council opposed the move, arguing the air and noise pollution would affect people living nearby and that it could potentially increase carbon emissions. – Guardian

A Labour MP whose constituency borders the proposed Sizewell C nuclear power station has been criticised for accepting a £2,000 donation from the developer behind the project. Jack Abbott, the newly appointed MP for Ipswich, is facing scrutiny over the decision to take cash from the French energy giant EDF earlier this month. – Telegraph

Energy bills for most households in Britain are expected to rise by an average of £146 to £1,714 a year from October 1, as wholesale gas prices rebound amid mounting global political turmoil. Ofgem is set to lift the price cap by 9 per cent, from £1,568 for the present quarter, when it updates the ceiling on Friday, according to Cornwall Insight, an industry forecaster. – The Times

US close

US stocks delivered another day of gains on Monday, helped by dovish comments from a prominent Federal Reserve policymaker, as the S&P 500 and Nasdaq extended their winning streaks into the eight straight session.

The S&P 500 finished 1% higher at 5,608.25, sitting just 1% shy of its all-time closing high of 5,667.20 set last month. The index has now gained 7.6% since 7 August.

The Nasdaq jumped 1.4% to 17,876.77, while the Dow rose for the fifth consecutive day, gaining 0.6% to 40,896.53.

This week's primary focus will be Federal Reserve chairman Jerome Powell's speech at the central bank's symposium in Jackson Hole, Wyoming on Friday, with market participants hoping to gain more insight into the Fed's position on future rate cuts.

Minutes from the Fed's most recent policy meeting will also be out on Wednesday.