Primark sales see AB Foods lift guidance; GSK gets positive opinions in Europe, Japan

London open

The FTSE 100 is expected to open 12 points higher on Monday, having closed down 0.54% at 7,461.87 on Friday.

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Third-quarter sales at discount fashion chain Primark grew 13%, driven by strong summer sales and higher prices as customers seek value for money amid the cost of living crisis, leading parent company Associated British Foods to lift annual guidance. Like-for-like sales grew 7% supported in the 12 weeks to May 27, with revenue reaching almost £2bn in the quarter and £6.2bn in the year to date.

GSK announced on Monday that the Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency had recommended authorisation of daprodustat for the treatment of symptomatic anaemia associated with chronic kidney disease (CKD) in adults on chronic maintenance dialysis. It also announced that the Japanese Ministry of Health had approved an updated indication for Shingrix for the prevention of shingles in adults aged 18 years and over who are at increased risk of the condition.

Newspaper round-up

Governments must raise taxes or cut public spending after central banks kept interest rates too low for too long in the face of higher inflation, according to the Bank of International Settlements. Closing the gap between government income and expenditure would “calm inflation”, according to the annual report from the Basel-based organisation, which advises 63 central banks covering 95% of global economic output. – Guardian

Car insurance is the latest household bill to go through the roof, with angry motorists complaining that prices are shooting up by as much as 70% when their policy comes up for renewal. While fuel prices have dropped back from 2022’s record highs the latest inflation bulletin from the Office for National Statistics (ONS) showed a new source of financial pain, with the price of car insurance up 43.1% in the last 12 months. – Guardian

The offshore wind industry has long been the poster child of Britain’s push into green energy. Championed by politicians as a controversy-free alternative to onshore wind and solar farms, the Government wants offshore wind capacity to surge from 13 gigawatts today to 50 gigawatts by 2030. – Telegraph

The £18 billion merger in Britain between Vodafone and Three is facing cross-party scrutiny in parliament over its links to China. MPs from both the Conservatives and Labour have tabled questions to government departments about the impact on state contracts with Vodafone after a proposed merger with Three, owned by CK Hutchison, a Hong Kong-listed conglomerate. – The Times

Shares of Braemar are at risk of being suspended after it emerged yesterday that the ship broker may not be able to publish its full-year results on time. The group, which had set a deadline of the end of this week, is audited by BDO and, according to Sky News, the accountancy firm has notified the company of “concerns about certain items in its accounts”. – The Times

US close

Stocks on Wall Street closed in the red on Friday, with the Dow Jones Industrial Average down 0.65% at 33,727.43.

The S&P 500 lost 0.77% to 4,348.33, and the Nasdaq Composite was 1.01% weaker at 13,492.52.