Interim profits halve at Moonpig, GSK welcomes ranitidine ruling
London open
The FTSE 100 is expected to open flat on Wednesday, having closed down 0.61% at 7,521.39 on Tuesday.
Stocks to watch
Interim profits at greetings card maker Moonpig halved as it warned that trading conditions had become progressively more challenging through October and November. The company on Wednesday reported pre-tax profits of £9.1m, down 51.3% and said that “given the continued macroeconomic uncertainty”, we now expect revenue for the full-year to be approximately £320 million.
GSK welcomed a ruling by the multi-district litigation court (MDL) over the heartburn drug ranitidine on Wednesday, after it dismissed all cases alleging the five remaining cancers. The FTSE 100 pharmaceutical giant said scientific consensus was that there was “no consistent or reliable evidence” that ranitidine increased the risk of any cancer. It said it would continue to defend itself “vigorously”, including against all claims brought at the state level in the US.
Newspaper round-up
The chancellor will urge the UK’s largest banks to do all they can to support those struggling to pay their mortgage during the cost-of-living crisis when he holds his first talks with chief executives on Wednesday. Jeremy Hunt will host a roundtable with heads of major mortgage lenders, including Debbie Crosbie of Nationwide, HSBC UK’s Ian Stuart and NatWest’s Alison Rose to discuss the impact of rising interest rates and living costs on customers. – Guardian
Joe Biden has agreed a deal to ramp up gas exports from the US to the UK as part of a joint effort to cut bills and limit Russia’s impact on western energy supplies. Sunak and Biden announced an “energy security and affordability partnership” and set up a joint action group, led by Westminster and White House officials, with the aim of reducing global dependence on Russian energy. – Guardian
Twitter is said to be under investigation by authorities in San Francisco following reports Elon Musk has built bedrooms in the company's headquarters. Several offices and conference rooms in Twitter’s building have been converted into small sleeping quarters as Mr Musk attempts to stamp control on the social media company. – Telegraph
About 1.5 million households supplied by Bulb face months more uncertainty after a judge said a legal challenge against its sale to Octopus Energy could not be heard until next year. The deal is due to complete this year but is subject to a judicial review brought by British Gas, Scottish Power and E.on, who are unhappy at the opacity of the terms and the financial support to Octopus from the government. – The Times
Glencore has cut production guidance across all the commodities it mines a day after committing to pay millions to the Democratic Republic of Congo after admitting to years of corruption. The trading and mining group expects to produce 1,040 kilotonnes of copper next year, down from 1,060kt this year and below consensus guidance of 1,124kt, as its Katanga copper and cobalt mine in the democratic republic was affected by issues with slope movements, grid power instability and higher volumes of acid-consuming ore. – The Times
US close
Wall Street stocks were in the red at the close of trading on Tuesday after the Commerce Department revealed that the US trade deficit had widened in November.
At the close, the Dow Jones Industrial Average was down 1.03% at 33,596.34, while the S&P 500 lost 1.44% to 3,941.26 and the Nasdaq Composite saw out the session 2.0% weaker at 11,014.89.
The Dow closed 350.76 points lower on Tuesday, extending losses recorded in the previous session.
The US trade deficit was in focus throughout the session, with the gap widening to $78.2bn in October from $74.1bn in September, according to the Commerce Department, the second consecutive increase after contracting for the prior six months. Exports fell by $1.9bn, while imports rose by $2.2bn, as a decline in consumer goods imports was offset by a rebound in industrial supplies and other goods imports.
Also drawing an amount of investor attention was news that Beijing city will no longer require negative Covid tests to enter the majority of public spaces, malls, or residential areas.