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London’s blue chips are expected to open higher on Monday, extending Friday’s strong gains.
Spread betting companies are calling the FTSE 100 up by around 9 points. The index of London large-caps added 59.84 points to 7,531.53 on Friday.
“A decent Asia session looks set to translate into a positive start for European markets although current unrest in France is likely to prompt questions about economic activity there in the coming weeks,” said Michael Hewson at CMC Markets.
In Asia, the Nikkei 225 index in Tokyo was up 1.7%. In China, the Shanghai Composite was up 1.3%, while the Hang Seng index in Hong Kong was up 1.8%.
On Friday, US markets rose after a weaker-than-expected PCE inflation, the Federal Reserve’s preferred inflation gauge.
Today, sees a slew of manufacturing PMIs which are likely to confirm the weakness of the sector.
Hewson said: “Today’s manufacturing PMIs are set to confirm the weak nature of this part of the global economy, with Spain, Italy, France, and Germany PMIs all forecast to slip back to 47.9, 45.3, 45.5, and 41 respectively.”
“UK and US are also expected to remain soft at 46.2 and 46.3 respectively, while the US ISM manufacturing survey, is also forecast to remain below 50, at 47.2, with prices paid at 44.”
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7.54am: Tesco names Gerry Murply as new Chair
Tesco has named Gerry Murphy as its new Chair on 1 September 2023 replacing John Allan, who has stepped down as allegations of misconduct.
Murphy has extensive global leadership experience and is currently Chair of Burberry and Tate & Lyle.
He plans to step down from Tate & Lyle on September 1.
Much of his executive career was spent in retail and other customer-focused businesses in senior leadership and commercial roles, most recently as chief executive of Kingfisher.
Interim Chair Byron Grote said: “He was the unanimous choice of the board,” and will bring “a record of strong and effective boardroom leadership and a deep understanding of retail and consumer-focused businesses and corporate governance.”
In May, Allan said he was stepping down to prevent the impact of the allegations against him “from becoming disruptive to the company”.
Four allegations about Allan emerged following an investigation by the Guardian into the Confederation of British Industry.
Allan vehemently denies what he has called “anonymous and unsubstantiated allegations” of misconduct against him.
7.05am: Bright start see for FTSE
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8.18am: FTSE 100 makes strong start
The FTSE 100 pushed higher in early trading consolidating Friday’s strong gains.
At 8.15am, London’s blue-chip index was up 26.94 points, or 0.4%, at 7,558.47 while the FTSE 250 climbed to 18,489.23, up 72.47 points, or 0.39%.
Richard Hunter at interactive investor said: “The tentative return to something of a risk-on approach was reflected by buying interest in the miners, while banks saw some relief after a recently turbulent time and ahead of their half-year reporting season at the end of this month.”
Miners occupied the top four places in the FTSE 100 risers with Anglo American, Antofagasta, Glencore and Rio Tinto all in the green.
On a quiet day for corporate news, Tesco named Gerry Murphy as its new chair succeeding John Allan who stepped down after allegations of misconduct.
The current Burberry and Tate & Lyle chair will join the UK’s largest retailer at the start of September.
Shore Capital’s Clive Black said: “We see this as an astute and good appointment by Tesco.”
“Murphy has had a high-quality career that embraces considerable elements of the UK consumer scene having being CEO of both Greencore and Kingfisher.”
Tesco shares rose 0.7%.
John Wood was another early riser with shares up 1.1% after the firm said it has secured a US$250mln contract extension from Brunei Shell Petroleum, Brunei’s largest energy producer.
Peel Hunt said this was “ a positive development.”
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- FTSE 100 on the front foot, up 27 points
- Tesco names Burberry’s Gerry Murphy as new Chair
- John Wood higher after US$250mln contract extension
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8.49am: FTSE higher, led by miners and oil majors
The FTSE remains in the green but off early highs, now up 10 points at 7,542.
Susannah Streeter at Hargreaves Lansdown said: “The FTSE 100 opened marginally higher, helped by the tailwinds of a strong session in Asia and on Wall Street on Friday.”
“But it’s still struggling to find significant momentum, dragged down by concerns about growth in China and the wider global economy.”
“Regaining its form and heading back to the heights of above 8,000 reached at the start of the year, still looks decidedly challenging,” she felt.
Miners and oil stocks are leading the risers.
But Astra Zeneca fell 4.6% despite what Shore Capital called “positive top-line data from the Phase III TROPION-Lung01 trial for its partnered pipeline asset datopotamab deruxtecan.”
However, the company said “for the dual primary endpoint of overall survival, the data were not mature and an early trend was observed in favour of datopotamab deruxtecan versus docetaxel that did not meet the prespecified threshold for statistical significance at this interim analysis.”
Trials will continue.
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9.11am: JD Sports enters Middle East with franshise deal
JD Sports has announced its first franchise agreement which will see it open stores in the Middle East as it pushes ahead with its ambitious store opening plans.
The franchise deal with GMG, a Dubai-headquartered well-being company, will see around 50 stores opened under the JD fascia by 2028, focused on the UAE, Saudia Arabia and Egypt.
The sports fashion retailer said the 10-year deal would be "a meaningful contributor to JD’s plans to open between 200 and 300 new stores each year over the next five years."
The agreement forms part of JD’s global growth strategy announced by new boss Régis Schultz, unveiled at the company’s Capital Markets Event in February.
"The partnership will enable JD to deliver on the roll out of its ‘JD Brand First’ strategy and is a pivotal move in the continued expansion into underpenetrated markets," JD said.
Schultz said there was "massive untapped potential for retailers in the Middle East."
Shares in JD Sports were little changed.
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9.38am: AstraZeneca falls as trial falls short of best case
Shares in AstraZeneca fell 3.9% after the pharma giant unveiled trial results from the Tropian-Lung01 phase III trial.
Analysts at Jefferies said the resuls seem “likely to fall short of best case.”
“Limited detail, as expected, with results said to provide "compelling evidence", suggesting a less pronounced benefit than hoped, in our view, plus "some" Grade 5 ILD related deaths” the broker noted.
Jefferies said success had been widely anticipated.
However, analysts at Shore Capital expected the result to be viewed positively, “albeit in the absence of this being described as ’clinically meaningful’ and the safety events noted we would like to see data in detail before drawing any firm conclusions.”
The trial looked at datopotamab deruxtecan, or Dato-DXd, in advanced non-small cell lung cancer.
In patients will locally advanced or metastatic NSCLC treated with at last one prior therapy, the treatment showed a "statistically significant" improvement for the dual primary endpoint of progression-free survival compared to docetaxel, the current standard of care chemotherapy.
However, for the dual primary endpoint of overalll survival, the data "were not mature".
"An early trend was observed in favour of datopotamab deruxtecan versus docetaxel that did not meet the prespecified threshold for statistical significance at this interim analysis," the company said.
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9.50am: UK manufacturing sector at six-month low
The UK manufacturing sector hit a six-month low in June, with levels of output, new orders and employment suffering further declines, according to latest figures.
This was despite signs of price and supply chain pressures easing, as client uncertainty and subdued conditions in domestic and export markets continued to weigh on order books.
The seasonally adjusted S&P Global/CIPS UK manufacturing PMI fell to a six-month low of 46.5 in June, down from 47.1 in May.
However, the figure was above a preliminary reading of 46.2.
#UK manufacturers suffer further declines in output, new orders and employment in June as the sector continues to struggle in the face of lackluster demand. The headline #PMI fell to a 6-month low of 46.5 (May: 47.1). Read more: https://t.co/RpYn8htiN1 @cipsnews pic.twitter.com/JrNYV5n7kX
— S&P Global PMI™ (@SPGlobalPMI) July 3, 2023
The PMI has signalled contraction in each of the past 11 months. All five of the subcomponent indices (output, new orders, stocks of purchases, employment and suppliers’ delivery times) were at levels consistent with weaker operating conditions.
John Glen, chief economist at the Chartered Institute of Procurement & Supply, said: “A combination of depressed sales from domestic and overseas markets and strong price pressures hanging around has resulted in levels of new business reducing for the third month in a row.”
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- FTSE 100 on the front foot, up 23 points
- AstraZeneca falls as trial results disappoint
- JD Sports to open stores in Middle East
9.50am: UK manufacturing sector at six-month low
The UK manufacturing sector hit a six-month low in June, with levels of output, new orders and employment suffering further declines, according to latest figures.
This was despite signs of price and supply chain pressures easing, as client uncertainty and subdued conditions in domestic and export markets continued to weigh on order books.
The seasonally adjusted S&P Global/CIPS UK manufacturing PMI fell to a six-month low of 46.5 in June, down from 47.1 in May.
However, the figure was above a preliminary reading of 46.2.
#UK manufacturers suffer further declines in output, new orders and employment in June as the sector continues to struggle in the face of lackluster demand. The headline #PMI fell to a 6-month low of 46.5 (May: 47.1). Read more: https://t.co/RpYn8htiN1 @cipsnews pic.twitter.com/JrNYV5n7kX
— S&P Global PMI™ (@SPGlobalPMI) July 3, 2023
The PMI has signalled contraction in each of the past 11 months. All five of the subcomponent indices (output, new orders, stocks of purchases, employment and suppliers’ delivery times) were at levels consistent with weaker operating conditions.
John Glen, chief economist at the Chartered Institute of Procurement & Supply, said: “A combination of depressed sales from domestic and overseas markets and strong price pressures hanging around has resulted in levels of new business reducing for the third month in a row.”
9.38am: AstraZeneca falls as trial falls short of best case
Shares in AstraZeneca fell 3.9% after the pharma giant unveiled trial results from the Tropian-Lung01 phase III trial.
Analysts at Jefferies said the resuls seem “likely to fall short of best case.”
“Limited detail, as expected, with results said to provide “compelling evidence”, suggesting a less pronounced benefit than hoped, in our view, plus “some” Grade 5 ILD related deaths” the broker noted.
Jefferies said success had been widely anticipated.
However, analysts at Shore Capital expected the result to be viewed positively, “albeit in the absence of this being described as ’clinically meaningful’ and the safety events noted we would like to see data in detail before drawing any firm conclusions.”
The trial looked at datopotamab deruxtecan, or Dato-DXd, in advanced non-small cell lung cancer.
In patients will locally advanced or metastatic NSCLC treated with at last one prior therapy, the treatment showed a “statistically significant” improvement for the dual primary endpoint of progression-free survival compared to docetaxel, the current standard of care chemotherapy.
However, for the dual primary endpoint of overalll survival, the data “were not mature”.
“An early trend was observed in favour of datopotamab deruxtecan versus docetaxel that did not meet the prespecified threshold for statistical significance at this interim analysis,” the company said.
9.11am: JD Sports enters Middle East with franshise deal
JD Sports has announced its first franchise agreement which will see it open stores in the Middle East as it pushes ahead with its ambitious store opening plans.
The franchise deal with GMG, a Dubai-headquartered well-being company, will see around 50 stores opened under the JD fascia by 2028, focused on the UAE, Saudia Arabia and Egypt.
The sports fashion retailer said the 10-year deal would be “a meaningful contributor to JD’s plans to open between 200 and 300 new stores each year over the next five years.”
The agreement forms part of JD’s global growth strategy announced by new boss Régis Schultz, unveiled at the company’s Capital Markets Event in February.
“The partnership will enable JD to deliver on the roll out of its ‘JD Brand First’ strategy and is a pivotal move in the continued expansion into underpenetrated markets,” JD said.
Schultz said there was “massive untapped potential for retailers in the Middle East.”
Shares in JD Sports were little changed.
8.49am: FTSE higher, led by miners and oil majors
The FTSE remains in the green but off early highs, now up 10 points at 7,542.
Susannah Streeter at Hargreaves Lansdown said: “The FTSE 100 opened marginally higher, helped by the tailwinds of a strong session in Asia and on Wall Street on Friday.”
“But it’s still struggling to find significant momentum, dragged down by concerns about growth in China and the wider global economy.”
“Regaining its form and heading back to the heights of above 8,000 reached at the start of the year, still looks decidedly challenging,” she felt.
Miners and oil stocks are leading the risers.
But Astra Zeneca fell 4.6% despite what Shore Capital called “positive top-line data from the Phase III TROPION-Lung01 trial for its partnered pipeline asset datopotamab deruxtecan.”
However, the company said “for the dual primary endpoint of overall survival, the data were not mature and an early trend was observed in favour of datopotamab deruxtecan versus docetaxel that did not meet the prespecified threshold for statistical significance at this interim analysis.”
Trials will continue.
8.18am: FTSE 100 makes strong start
The FTSE 100 pushed higher in early trading consolidating Friday’s strong gains.
At 8.15am, London’s blue-chip index was up 26.94 points, or 0.4%, at 7,558.47 while the FTSE 250 climbed to 18,489.23, up 72.47 points, or 0.39%.
Richard Hunter at interactive investor said: “The tentative return to something of a risk-on approach was reflected by buying interest in the miners, while banks saw some relief after a recently turbulent time and ahead of their half-year reporting season at the end of this month.”
Miners occupied the top four places in the FTSE 100 risers with Anglo American, Antofagasta, Glencore and Rio Tinto all in the green.
On a quiet day for corporate news, Tesco named Gerry Murphy as its new chair succeeding John Allan who stepped down after allegations of misconduct.
The current Burberry and Tate & Lyle chair will join the UK’s largest retailer at the start of September.
Shore Capital’s Clive Black said: “We see this as an astute and good appointment by Tesco.”
“Murphy has had a high-quality career that embraces considerable elements of the UK consumer scene having being CEO of both Greencore and Kingfisher.”
Tesco shares rose 0.7%.
John Wood was another early riser with shares up 1.1% after the firm said it has secured a US$250mln contract extension from Brunei Shell Petroleum, Brunei’s largest energy producer.
Peel Hunt said this was “ a positive development.”
7.54am: Tesco names Gerry Murply as new Chair
Tesco has named Gerry Murphy as its new Chair on 1 September 2023 replacing John Allan, who has stepped down as allegations of misconduct.
Murphy has extensive global leadership experience and is currently Chair of Burberry and Tate & Lyle.
He plans to step down from Tate & Lyle on September 1.
Much of his executive career was spent in retail and other customer-focused businesses in senior leadership and commercial roles, most recently as chief executive of Kingfisher.
Interim Chair Byron Grote said: “He was the unanimous choice of the board,” and will bring “a record of strong and effective boardroom leadership and a deep understanding of retail and consumer-focused businesses and corporate governance.”
In May, Allan said he was stepping down to prevent the impact of the allegations against him “from becoming disruptive to the company”.
Four allegations about Allan emerged following an investigation by the Guardian into the Confederation of British Industry.
Allan vehemently denies what he has called “anonymous and unsubstantiated allegations” of misconduct against him.
7.05am: Bright start see for FTSE
London’s blue chips are expected to open higher on Monday, extending Friday’s strong gains.
Spread betting companies are calling the FTSE 100 up by around 9 points. The index of London large-caps added 59.84 points to 7,531.53 on Friday.
“A decent Asia session looks set to translate into a positive start for European markets although current unrest in France is likely to prompt questions about economic activity there in the coming weeks,” said Michael Hewson at CMC Markets.
In Asia, the Nikkei 225 index in Tokyo was up 1.7%. In China, the Shanghai Composite was up 1.3%, while the Hang Seng index in Hong Kong was up 1.8%.
On Friday, US markets rose after a weaker-than-expected PCE inflation, the Federal Reserve’s preferred inflation gauge.
Today, sees a slew of manufacturing PMIs which are likely to confirm the weakness of the sector.
Hewson said: “Today’s manufacturing PMIs are set to confirm the weak nature of this part of the global economy, with Spain, Italy, France, and Germany PMIs all forecast to slip back to 47.9, 45.3, 45.5, and 41 respectively.”
“UK and US are also expected to remain soft at 46.2 and 46.3 respectively, while the US ISM manufacturing survey, is also forecast to remain below 50, at 47.2, with prices paid at 44.”