Tesco FY profits soar, Meggitt disposes of piezoelectric ceramic components unit
London pre-open
The FTSE 100 was being called to open just 4.3 points lower ahead of the bell on Wednesday after closing 0.55% weaker on Tuesday at 7,576.66.
Stocks to watch
Higher sales and lower costs related to the Covid-19 pandemic saw UK grocer Tesco report soaring annual profits on Wednesday.
Tesco said pre-tax profits rose 219% to £2.0bn on sales of £54.7bn, excluding fuel, an increase of 2.5%. It also widened its adjusted operating profit range for the current year to between £2.4bn and £2.6bn.
Aerospace firm Meggitt has disposed of its piezoelectric ceramic components manufacturing unit to CTS Ceramics Denmark A/S for £59.0m in cash, subject to net debt and working capital adjustments.
Meggitt said on Wednesday that the disposal of Meggitt A/S was consistent with its strategy of developing "sustainable and differentiated technologies" for its core end markets in aerospace, defence and energy. Cash proceeds will be paid on completion and be used to pay down debt and for general corporate purposes.
GlaxoSmithKline has agreed to buy Sierra Oncology, a US rare cancer therapy company, for $1.9bn in cash.
The UK drug company said on Wednesday that Sierra's treatment had the potential to meet unmet medical needs of myelofibrosis patients with anaemia.
Newspaper round-up
A Twitter shareholder is suing Elon Musk for failing to disclose that he had bought a substantial stake in the company, affecting share prices. The Tesla CEO revealed on 4 April that he had acquired a 9.2% stake in Twitter. Shares in the social media company soared, as investors viewed the move as a vote of confidence from the richest man in the world. - Guardian
More than one in eight privately rented homes in England pose a serious threat to people's health and safety, costing the NHS about £340.0m a year, according to a report from a committee of MPs. It also uncovered evidence of unlawful discrimination, with an estimated one in four landlords unwilling to let to non-British passport holders. - Guardian
Priti Patel was warned a month ago about a looming wave of travel chaos after passport control staff were sent to deal with the Dover migrant crisis instead. Airline chiefs told the Home Secretary in March that a lack of Border Force workers could spark massive passenger queues at terminals across Britain. - Telegraph
US regulators have banned Imperial Brands' myblu vaping device after a review found there was a lack of evidence they would protect public health, in a blow for the tobacco industry's transition from cigarettes. The Food and Drug Administration has issued marketing denial orders for several myblu electronic nicotine delivery products. After considering their design and manufacturing it concluded the applications "did not demonstrate that the potential benefit to smokers who switch completely or significantly reduce their cigarette use would outweigh the risk to youth". - The Times
Glencore funded two Russian refinery businesses whose owners are close associates of President Putin, documents show. The FTSE 100 commodities giant has sought to play down its links to Russia since the invasion of Ukraine, saying that its trading exposure to Russia is "not material". But newly uncovered documents show that in recent years it has had more extensive dealings benefiting senior figures close to the regime than previously reported. - The Times
US close
Wall Street stocks ended the session in the red on Tuesday as market participants digested a key inflation report from the Labor Department.
At the close, the Dow Jones Industrial Average was down 0.26% at 34,220.36, while the S&P was 0.34% weaker at 4,397.45 and the Nasdaq Composite saw out the session 0.30% softer at 13,371.57.