FTSE 100 rises in early trade; Oil stocks, miners -2-

11:03 GMT – GSK’s acquisition of biotech company Affinivax gives it a next-generation 24-valent pneumococcal vaccine that will soon enter phase 3 trial, and a technology platform that could have broad application for d other bacterial infections, Jefferies analysts say in a note. Overall, the deal is consistent with GSK’s strategy to pursue expansions in its priority therapeutic areas, analysts said. The UK pharmaceutical major’s capacity is also set to be further bolstered by the upcoming spin-off and listing of its Haleon consumer healthcare business, Jefferies said. GSK is trading down 0.2% at 1,711.60 pence. (cecilia.butini@wsj.com)

Just Eat Takeaway shares rise after reported interest in Grubhub

10:43 GMT – Shares of Just Eat Takeaway.com are trading up 12% after reported interest in Grubhub by its founder Matt Maloney and US private equity firm General Atlantic. Investors in Just Eat Takeaway would like to see the sale of Grubhub, Citi says in a note, adding that market expectations for its price have fallen, with an implied price of $1.05 billion, based on the latest ratio. action confirmed and closing part of the group. price on Friday. The Amsterdam-based food delivery group’s management recently said it was actively looking for a strategic partner and/or a partial or full sale of Grubhub. (kyle.morris@dowjones.com)

Rise in European oil stocks; Investors ignore OPEC decision

10:42 GMT – European oil stocks rise as poor news from the tech sector boosts demand for energy stocks. BP, Shell, Eni and TotalEnergies all gained between 1% and 3% while power utilities also rose. “A soft earnings warning from Microsoft and reports of job cuts at Tesla will hardly be welcome for investors in growth stocks, while those with lots of oil stocks might be pleasantly surprised to see Crude prices remain firm despite OPEC promises to increase production,” said Russ Mould, chief investment officer at AJ Bell. “While financial markets continue to be obsessed with interest rates and quantitative tightening, oil is the biggest issue right now, not least because central banks cannot print crude, so any influence that ‘they have is limited to demand, not supply.’ (philip.waller@wsj.com)

Melrose’s sale of Ergotron looks positive given the macro picture

10:33 GMT – Although Melrose Industries’ sale of its Ergotron ergonomic products business for around $650 million is at the lower end of initial valuation ranges, it is positive given the market backdrop, according to Mark Fielding and Colin Moody, analysts at RBC Capital Markets in a note. Earlier in the year, Melrose – an industrial turnaround specialist – confirmed it was looking for a buyer and the media estimated a potential valuation between $650m and $800m, with the wider question being whether it would be able to complete the sale. , analysts say. “We view this as a positive given declining industrial stock market valuations and heightened economic uncertainty,” they said. RBC rates the stock as outperforming and has a target price of 220 pence. (anthony.orunagoriainoff@dowjones.com)

UK credit growth weakens in coming months

08:51 GMT – The unexpected sharp rise in unsecured borrowing in April adds to evidence that consumer spending in the UK has not yet collapsed, despite declining consumer confidence and falling real household incomes, said Ruth Gregory, senior UK economist at Capital Economics. search note. “With interest rates rising and the cost of living squeeze only getting worse, we wouldn’t be surprised if credit growth starts to falter in the coming months,” Gregory says. As household cash holdings rose in April by more than their 2019 pre-pandemic average for the fourth month in a row, that makes CE more pessimistic about the outlook for consumer spending, she says. This suggests that households are not compensating for the compression of their real income by drawing on their excess savings. (maria.martinez@wsj.com)

Vote of confidence in British Prime Minister Johnson may have little impact on the pound

08:31 GMT – British Prime Minister Boris Johnson will face a vote of confidence in his Conservative Party leadership later, but that may have little impact on sterling, according to ING. “While bearing in mind that the Prime Minister might survive a possible no-confidence vote, even the prospect of a leadership change within the Conservative Party may not have much political implications. “, say ING analysts. However, the pound sterling remains vulnerable in the near term given the deteriorating outlook for economic growth and a possible downward revision of interest rate expectations for the Bank of England, they say. The vote of confidence takes place between 5:00 p.m. GMT and 7:00 p.m. GMT. GBP/USD rises 0.6% to 1.2570 but EUR/GBP gains 0.5% to 0.8555 after hitting a three and a half week high of 0.8597 earlier. (renae.dyer@wsj.com)

 

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FTSE 100 rises in early trade; Oil stocks, miners shine

 

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June 06, 2022 09:51 ET (13:51 GMT)

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Felix J. Dixon