Cranswick flags strong annual results, PureTech schizophrenia treatment gets US approval

London open

The FTSE 100 is expected to open eight points higher on Friday, having closed up 0.2% on Thursday at 8,284.91.

Stocks to watch

Food producer Cranswick said it expected annual results to be at the upper end of expectations after first-half trading came in ahead of the previous year. The company said it was still cautious about “current market and wider economic and geopolitical conditions”, but noted that trading since the end of the first quarter “has been stronger than previously expected, underpinned by continued robust volume growth in our core UK food business (and) a positive ongoing contribution from our expanding pig farming operations”. Market expectations for adjusted pre-tax profit at September 27 2024 ranged between £179.2m - £191.7m.

Clinical-stage biotherapeutics company PureTech Health has announced that the schizophrenia treatment it developed, which was later sold to Bristol Myers Squibb, has been approved by US regulators, triggering a $29m payment and unlocking potential future royalties.

International Public Partnerships announced the partial sale of its ‘Family Housing for Service Personnel’ (FHSP) investment on Friday, generating around £30m. The FTSE 250 company said the sale aligned with its capital allocation strategy, and would support its share buyback programme and near-term investment commitments. It said the remaining FHSP investments, valued at around £73m as of 30 June, were still part of its portfolio.

Newspaper round-up

Ministers have been urged to intervene to stop football clubs from setting their own rules on curbing gambling advertising, after research showed Premier League fans were bombarded with nearly 30,000 gambling messages on a single weekend. Clubs in the top flight have so far avoided compulsory restrictions on gambling sponsorship, instead addressing public concern through voluntary measures such as a ban on front-of-shirt logos, starting in 2026. – Guardian

Campaign groups have urged the government to cancel major road building schemes including the Lower Thames Crossing, amid growing speculation that ministers could divert money earmarked for new roads into rail and other public transport. The transport secretary, Louise Haigh, is due to decide in a week whether to sign off a development consent order [DCO] for the £9bn road crossing linking Essex and Kent. – Guardian

Rachel Reeves should cut public sector workers’ “extremely valuable” pensions at her maiden Budget, a leading think tank has said, amid continued pressure from unions over pay rises. The Institute for Fiscal Studies (IFS) told the Chancellor that there is a “good case” for lowering pensions for public sector workers to fund future pay rises after the Government granted inflation-busting settlements to doctors, teachers and nurses. – Telegraph

The furore engulfing the Financial Conduct Authority over its chairman’s failure to abide by its own whistleblowing policy has intensified after Ashley Alder resisted pressure to resign. A review undertaken by Richard Lloyd, the senior independent director on the regulator’s board, and published by the watchdog on Monday found that Alder “did not follow the policy to the letter” when he forwarded emails from two whistleblowers to senior colleagues without removing the individuals’ personal details or obtaining their consent. – The Times

A number of Rightmove shareholders have said the property website should start takeover talks with the Australian rival it has rebuffed. Rightmove has rejected three indicative offers from Rea Group as opportunistic, unattractive and undervaluing the company’s prospects. Jamie Forbes-Wilson, fund manager at AXA Investment Managers, which holds 1 percent of Rightmove, said: “We would agree that it feels a little opportunistic for Rea to be coming along at this time, but it is also recognition that Rea sees Rightmove as the high-quality business that we, as long-term holders of the share, think that it is.” – The Times

US close

Wall Street stocks closed higher on Thursday as major indices reclaimed a significant chunk of the previous session's losses.

At the close, the Dow Jones Industrial Average was up 0.62% at 42,175.11, while the S&P 500 advanced 0.40% to 5,745.37 and the Nasdaq Composite saw out the session 0.60% firmer at 18,190.29.

The Dow closed 260.36 points higher on Thursday, clawing back most of yesterday's streak-snapping losses.

Thursday's primary focus was on a final reading of America's Q2 gross domestic product, which revealed US economic activity expanded by 3% year-on-year in the second quarter of 2024, with the Bureau of Economic Analysis confirming an earlier estimate, though GDP growth calculations from previous years were hiked up.