Sky puts $2m into connected device startup, AstraZeneca completes two major transactions

London open

The FTSE 100 is expected to open 31 points higher on Monday, after closing down 0.51% at 7,312.71 on Friday.

Stocks to watch

Subscription broadcaster and telecoms provider Sky has made a $2m equity investment in early-stage technology company Circle Media Labs, which specialises in connected devices. "This investment will provide Sky with additional insight into developments within the field," it said.

AstraZeneca confirmed the completion of two major transactions on Monday, bringing in almost half a billion dollars for the drugmaker in the current financial year. The FTSE 100 company said it had completed the agreement with Recordati for the commercial rights to Seloken in Europe, with an upfront payment of $290m to be recorded in the second quarter of 2017. It also said it had completed the agreement with Grunenthal for the global rights to Zomig outside Japan, with an upfront payment of $200m to be recorded in the same quarter.

Water utility Severn Trent has sold its North American business for $62m (£48m) as it looks to focus on its core UK activities. The buyers are US investment groups PPC Enterprises and Alston Capital Partners.

Newspaper round-up

A cabinet split emerged last night after Michael Gove claimed taxes should not have to rise to pay for an end to austerity despite the Chancellor's warning that ordinary working people will foot bill. Faced with increasing calls to end the public sector pay cap and put more money into schools and hospitals Philip Hammond has cautioned that money will have to be raised to pay for the extra spending. - Telegraph

Central bank officials across the world are increasingly nervous about the shock of bond issuance to hit public debt markets as they knock away the prop of quantitative easing and reverse crisis-era policies. A mere hint of monetary tightening last week sent bond yields spiraling higher in the US, Europe, and East Asia, a foretaste of how hard it may be to engineer a gentle return to normality. - Telegraph

The UK's ageing population will force the government to raise taxes, borrow more or cut back on healthcare spending even if Britons are forced to work until they are 75, according to Legal & General. Analysis of official projections showed raising the retirement age by a decade overnight would still result in “painful choices” for policymakers. - Telegraph

Initial public offerings are on the rise again in London, despite the shock election result and continued confusion around Britain’s plan for Brexit. Data from EY shows that there have been 18 IPOs in London so far this year, raising £4.2 billion in total. - The Times

Virgin Media’s £3bn network expansion plan is running badly behind schedule, threatening the growth targets of its parent company, the pan-European cable giant Liberty Global. Documents seen by The Daily Telegraph reveal that in June the Project Lighting scheme fell 61pc short of its goal for connecting new homes. - Telegraph

US close

Wall Street's main indices ended the last session of the quarter on a mixed note with technology issues again lagging behind despite better than expected readings on the economy.

Heading into the 4 July weekend, the Dow Jones Industrial Average gained 0.29% or 62.60 points to 21,349.63 with the S&P 500 ahead by 0.15% or 3.71 points at 2,423.41 but the Nasdaq Composite dipped 0.06% or 3.93 points to 6,140.42.

Leading gains, by industrial groups the strongest areas of the market were: Footwear (9.51%), Home construction (1.73%) and Industrial suppliers (1.45%).

On the economic front, Market News International's Chicago business barometer jumped from a reading of 59.4 for May to 65.7 in June - a three-year high.

A gauge of new orders was especially strong, rocketing by 10.5 points to 71.9.