Tesco sales grow again, AstraZeneca flu vaccine rejected

London open

The FTSE 100 is predicted to open 19 points higher on Thursday.

Stocks to watch

First-quarter results from Tesco confirmed sales growth continued for the second successive period, while chief executive Dave Lewis revealed plans to sell the Harris + Hoole coffee shop chain to Caffè Nero. Tesco recorded like-for-like sales growth of 0.9% in the 13 weeks to 28 May, with LFL sales up 0.3% in the UK and 3% for the international business. The market was expecting UK LFLs growth of 0.2% after the 0.9% growth in the fourth quarter of the last financial year.

Pharmaceutical giant AstraZeneca confirmed disappointing news to investors on Thursday, with updated guidance from US regulators recommending against its FluMist Quadrivalent influenza vaccine. The FTSE 100 firm said the updated guidance from the Advisory Committee on Immunization Practices at the Centers for Disease Control and Prevention has recommended against FluMist for the 2016-2017 flu season.

Meggitt has won a five-year indefinite-delivery/indefinite-quantity contract for its safety systems worth up to $21m for the two-place seat canopy actuator on the F16 fighter jet from the US Defense Logistics Agency. Some 550 dual seat F-16 aircraft are in line for canopy actuator replacements over the next five years, Meggitt said, adding that all but the initial contract worth $2.1m will be available for procurement by the US Air Force and Foreign Military Sales.

Newspaper round-up

The boss of Britain’s biggest airline has accused Heathrow of “ripping off” passengers with plans for a new runway when it could save billions of pounds by doubling the length of an existing one. Willie Walsh, chief executive of British Airways’ parent company, called for an extension to the airport’s northern runway — rather than a third runway costing almost £18 billion — saying that it was the only way to create extra capacity at Heathrow without vastly inflating costs for travellers and driving away airlines. - The Times

City banks have reportedly drawn up a list of demands for politicians if the UK leaves the EU today, calling for the slashing of red tape, open borders and a push to underpin the country’s status as a financial centre outside the EU. Confidential documents from TheCityUK lobby group show the group has a plan to mitigate the damage caused by a Brexit, and suggest it would be possible to promote a “relatively better long-term economic outlook for the UK” which would “promote financial stability” outside the European Union. - Daily Telegraph

The total cost of a two-year competition investigation into the British energy market could exceed £80 million, according to industry officials. The Competition and Markets Authority is set to publish its final 500-page report tomorrow, bringing a formal end to a detailed study of the energy market that began in June 2014. - The Times

US close

US stocks gave up their earlier gains to finish in the red as worries about the UK referendum on EU membership spread across the Atlantic.

The Dow Jones Industrial Average lost 0.27% to end at 17,780.83, the S&P 500 lost 0.17% to 2,085.45 and the Nasdaq Composite lost 0.22% to 4,833.32.

At the same time, oil prices slipped into the red after data from the Energy Information Administration showed US crude inventories fell by 900,000 barrels last week, which was a smaller drop than expected.

The dollar was down 0.26% versus the pound to $1.4690 after two online opinion polls, from TNS and Opinium, showed leads for the Vote Leave campaign.