FDA accepts GSK new drug application, Whitbread raises half-year dividend

Stocks to watch

GSK announced on Wednesday that the US FDA has accepted its new drug application for ‘gepotidacin’, an investigational oral antibiotic for uncomplicated urinary tract infections (uUTIs) in female adults and adolescents, and granted it priority review with a decision expected by 26 March next year. The FTSE 100 pharmaceuticals giant said gepotidacin, which demonstrated positive results in phase three trials, could become the first in a new class of oral antibiotics for uUTIs in over 20 years. It said the trials showed gepotidacin was non-inferior to the current standard of care, nitrofurantoin, with a favourable safety profile.

Premier Inn owner Whitbread on Wednesday lifted its half-year dividend and said it would buy back an additional £100m in shares, despite a fall in earnings. The company held annual guidance as pre-tax profit for the six months to August 29 fell 22% to £309m on flat revenue of £1.5bn. The dividend was increased 7% to 36.4p. Whitbread said the result reflected a weaker UK economic environment and investment in its five-year accelerated growth programme (AGP), offset by positive momentum in Germany which is becoming a key market for the group.

Newspaper round-up

The future ownership of the water industry should be decided by a citizens’ assembly to remove decision-making from boardrooms and impose democracy on the sector, a private member’s bill is to argue. Labour MP Clive Lewis, who in the past has called for water to be put back into public ownership, will introduce his bill on the future of water ownership and management later today. - Guardian

The founder of BrewDog has lashed out at plans by Sir Keir Starmer and Rachel Reeves to raise capital gains tax, ahead of an expected stock market listing that would put him in line for a major windfall. James Watt said a large rise in capital gains tax in the Budget on Oct 30 “will destroy entrepreneurial spirit in the UK and in turn severely damage our economy”. - Telegraph

Boeing has filed a registration statement with the US markets regulator that will allow the struggling planemaker to raise up to $25 billion as it faces a continuing strike, production delays and upcoming debt maturities. It was not clear when or how much Boeing will raise via the offering, which is through various debt securities and share classes, but analysts and investors expect the company to raise money before the end of the year. - The Times

British employers have warned that a rise in employer national insurance contributions in the budget could hit hiring and limit pay rises, hurting businesses including pubs, hotels and restaurants. Keir Starmer and the chancellor, Rachel Reeves, have refused to rule out a rise in employer contributions in the budget on 30 October, as part of plans to plug what the government says is a £22bn hole in the public finances left by the previous Conservative government. - Guardian

A European crackdown on petrol cars will trigger a “massive shrinking” of the Continent’s vast automotive industry, the boss of BMW has claimed. Speaking at the Paris Automotive Show, Oliver Zipse warned that new rules leading to a ban on combustion engine vehicles by 2035 would put Europe’s carmakers at a disadvantage compared to their Chinese rivals. His warning came as France revealed it was pushing for “flexibility” on European Union regulations ahead of their introduction next year. - Telegraph

US close

Wall Street stocks were in the red at the close of trading on Tuesday as Q3 earnings season kicked up a gear.

At the close, the Dow Jones Industrial Average was down 0.75% at 42,740.42, while the S&P 500 lost 0.76% to 5,815.26 and the Nasdaq Composite saw out the session 1.01% weaker at 18,315.59.

The Dow closed 324.80 points lower on Tuesday, more than reversing gains recorded in the previous session.

Earnings were Tuesday's primary focus, with UnitedHealth revealing that medical costs had exceeded Wall Street estimates during Q3, while Johnson & Johnson delivered a Q3 earnings beat and upped its full-year guidance.

As far as banks were concerned, Goldman Sachs reported a 45% quarterly profit jump on a solid investment banking performance, while Bank of America also exceeded profit estimates thanks to stronger-than-expected investment banking, and Citigroup delivered Q3 profits that fell far less than expected.