Melrose appoints Chris Grigg as chair, AstraZeneca breast cancer treatment trial fails

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Aerospace manufacturing group Melrose has appointed the former boss of British Land and veteran banker Chris Grigg as its chair designate. Grigg, currently chair of the UK Infrastructure Bank, was the former CEO of Barclays Commercial Bank, Treasurer of Barclays Bank and a former 20-year partner at Goldman Sachs. He replaces Justin Dowley, who is stepping down as non-executive chair, having led the board since 2019.

AstraZeneca announced on Tuesday that a phase three trial for ‘Truqap’, or capivasertib, combined with paclitaxel in advanced or metastatic triple-negative breast cancer (TNBC) patients did not achieve the primary endpoints of improved overall survival. The FTSE 100 pharmaceuticals giant said the trial compared Truqap to paclitaxel with placebo, in both the overall population and a subgroup with specific biomarker alterations. Truqap was still being evaluated in other phase three trials for the treatment of breast cancer and prostate cancer, in combination with established treatments.

Premier Inn owner Whitbread said it was confident on its full year outlook despite flat first quarter sales. Hotel sales were boosted by a strong performance in Germany, where they rose 15%, offsetting zero growth in the UK. “While midweek business demand and peak leisure demand remained robust, weekend demand at short-lead was slightly softer, particularly in London, reflecting a return to more normalised levels after what was a very strong performance last year,” the company said on Tuesday.

Newspaper round-up

Investment in the UK has trailed other G7 countries including the US and Germany since the mid-1990s, according to a report that urges Labour and the Conservatives to reverse planned cuts to investment or risk long-term damage to economic growth. The Institute for Public Policy Research (IPPR) thinktank found the UK was bottom of the G7 league for investment in 24 out of the last 30 years, using figures from the Organisation for Economic Co-operation and Development (OECD). – Guardian

The consumer group Which? has called for an overhaul of the energy performance certificates (EPC) system after an investigation found assessments riddled with inaccuracies and unhelpful advice that could cost homeowners thousands of pounds. The investigation, which included Which? securing EPC assessments for 12 homeowners, found in one case an assessor had failed to mention a property’s solar panels or wood burning stove in their final assessment, while the cost of upgrades recommended to another owner would not have been recouped for 29 years. – Guardian

London is dragging down Britain’s productivity growth as office staff continue to work from home, new figures show. Productivity in the capital tumbled in 2022, according to the Office for National Statistics, taking output per hour worked – a key tool to measure each employee’s efforts – to its lowest level since 2009. London’s productivity dropped by 2.7pc between 2019 and 2022, the ONS said, with Wales the only other region to fall. – Telegraph

Britain has failed to improve on its disappointing record for business investment after ranking lowest among the G7 nations for a third consecutive year. According to a new analysis by the Institute for Public Policy Research, Britain came bottom of the league table of the group of seven leading economies in terms of investment by private companies in 2022. It was 28th out of 31 countries in the Organisation for Economic Co-operation and Development, with only Greece, Luxembourg and Poland below it. – The Times

A Labour government risks fuelling inflation and job losses with its plan to introduce a “genuine living wage” for workers, economists at HSBC have warned. Sir Keir Starmer’s party has pledged to overhaul the remit of the Low Pay Commission, the independent body that advises the government on the national minimum and living wages, to ensure that it considers the cost of living when it makes its recommendations. – The Times

US close

US stocks put in decent gains on Monday with the S&P 500 and Nasdaq both setting new record highs once again as equities in the tech sector put in a decent performance.

Markets started off a shortened trading week in positive fashion ahead of the Juneteenth US public holiday on Wednesday and a host of central bank meetings overseas, namely the UK, Norway, Switzerland and Australia.

The S&P 500 finished 0.8% higher at a fresh all-time high of 5,473.33, while the Nasdaq jumped 1.0% to set a new peak of 17,857.02.

The Dow Jones Industrial Average meanwhile gained 0.5%, rebounding after having fallen in five of the past six sessions.

Goldman Sachs announced over the weekend that it has lifted its year-end target for the S&P 500 to 5,600, from 5,200 previously, due to "milder-than-average negative earnings revisions and a higher fair value price/earnings multiple".