Dr. Martens flags lower core margins, AstraZeneca gets another Lynparza approval

London open

The FTSE 100 is expected to open 20 points higher on Thursday, having closed down 1.01% on Wednesday at 7,446.14.

Stocks to watch

UK bootmaker Dr Martens on Thursday said it expected lower core margins in 2024 after extra costs caused by blunders at its Los Angeles distribution centre as it posted a slump in annual profits. Pre-tax profit for the year to March fell 26% to £159.m. Revenue jumped 10% to hit £1bn for the first time. Dr Martens said high inflation, rising interest rates and an uncertain geopolitical landscape had weakened consumer demand in some of its core markets, especially America, as shoppers refrained from buying the company's iconic chunky-soled and expensive boots and shoes.

AstraZeneca said on Thursday that the drug combination of Lynparza with abiraterone and prednisone or prednisolone has received US approval for treating adults with metastatic castration-resistant prostate cancer (mCRPC), who have deleterious or suspected deleterious BRCA mutations. The approval was based on findings from a subgroup analysis of the phase three ‘PROpel’ trial, which demonstrated significant improvements in radiographic progression-free survival and overall survival when Lynparza was used in combination with abiraterone compared to abiraterone alone in patients with BRCA mutations.

Newspaper round-up

Supermarkets have cut more than 7p a litre from the price of diesel since the UK’s competition watchdog warned it would question retail bosses about unnecessarily high forecourt prices, according to the RAC. The motoring group found that the average price of diesel fell by 7.44p a litre, from 151.02p two weeks ago to 143.58p this week, after the Competition and Markets Authority (CMA) raised concerns that retailers were making “sustained higher margins” from sales of diesel. – Guardian

Amazon’s main UK division has paid no corporation tax for the second year in a row after benefiting from tax credits on a chunk of its £1.6bn of investment in infrastructure, including robotic equipment at its warehouses. Amazon UK Services, which employs more than half of the group’s UK workers, received a tax credit of £7.7m in the year to the end of December, according to accounts filed at Companies House, advance details of which were shared by Amazon with the Guardian. – Guardian

The owner of Premier Inn plans to swap mains gas for heat pumps and solar panels at more than 800 of its hotels as it pushes for net zero. The hotel chain, which is owned by Whitbread, one of the UK’s largest hospitality businesses, wants to remove mains gas connections wherever possible by 2040 to boost its green credentials. – Telegraph

The City regulator has launched a criminal investigation into the racehorse-owning boss of WealthTek around a potential £81 million gap in the collapsed fund management company’s finances. Officials at the Financial Conduct Authority confirmed that John Dance was being investigated over possible fraud and money-laundering offences, as well as potential regulatory breaches. – The Times

Sean Combs, the American rapper, actor, record producer who also has been known as Puff Daddy, P Diddy and Diddy, has accused Diageo of breaking the terms of their business partnership and of neglecting the tequila brand they had bought together, saying the company had done so because he is black. The lawsuit comes after years of partnership between the spirits company that owns Johnnie Walker, Guinness and Tanqueray and Combs, 53, with their joint DeLeón tequila brand. – The Times

US close

Wall Street's major indices closed lower on Wednesday, with investors holding their collective breath for a crucial vote on the federal debt ceiling deal set to take place in the House of Representatives later in the evening.

At the close, the Dow Jones Industrial Average was down 0.41% at 32,908.27, while the S&P 500 fell 0.61% to settle at 4,179.83.

The tech-heavy Nasdaq Composite declined 0.63% to finish the session at 12,935.29.

Wednesday also marked the last trading day of May, with the Dow logging a monthly loss of 3.5%, while both the S&P 500 and the Nasdaq Composite ended it in the green.

On the currency front, the dollar was last 0.04% stronger on sterling to trade at 80.41p, as it advanced 0.03% against the common currency to 93.58 euro cents.