- FTSE 100 closes 8 points lower
- US stocks lower awaiting news on debt ceiling
- Drahi increases stake in BT to 24.5%, no bid planned
4.40pm: FTSE 100 in the red
At the close of trading Tuesday, the FTSE 100 had lost its gains from earlier in the day as US investors eyed any developments in the debt ceiling talks.
The UK's blue-chip index ended the day 0.1% lower at 7,763 points.
"With the clock continuing to tick down towards the US debt ceiling deadline of 1st June, and US policymakers no nearer to a deal, European markets are finding little inclination to move higher, with the DAX and CAC40 sliding back for the second day in a row," Michael Hewson at CMC Markets noted.
"With debt ceiling discussions ongoing, and time running out for an agreement, US markets are starting to roll back, with the outlook for interest rates and a slowing economy, also starting to gain traction, with a stronger US dollar and higher yields starting to act as a drag on risk."
3.55pm: Caution prevails
The FTSE 100 index approached the last half-hour of trading in London in a cautious mood, having run back from a session peak just above the 7,800 level as Wall Street opened nervously as further news on US debt ceiling talks was sought.
Craig Erlam, senior market analyst, UK & EMEA, OANDA commented: “Equity markets are broadly lower on Tuesday as traders monitor debt ceiling talks in Washington, take note of new IMF forecasts, and hear fresh warnings from the Saudi Energy Minister.
“Once again, it's been a relatively lively day as far as headlines are concerned and yet there's still a feeling of hesitance in the markets. We're still waiting to see a resolution on the debt ceiling, which will undoubtedly come, after more promising talks between President Biden and House Speaker McCarthy.
“At the same time, we may be at a turning point on inflation and interest rates around the world but we're still waiting for data that could confirm that or at least put us on a more promising path. The next couple of months will be crucial for that.”
3.35pm: Crude in demand
Oil prices extended Monday's rally after a warning to speculators from the Saudi energy minister raised the prospect of further OPEC+ cuts to support the market, while US debt ceiling talks optimism and hopes for the future demand outlook also added support.
In afternoon trading in London, Brent crude was up 1.6% at $75.66 a barrel, while US West Texas Intermediate (WTI) added 1.5% to $73.15.
Several members of OPEC+ began voluntary production cuts in May which as well as higher US gasoline demand are also expected to tighten supply.
OPEC+ meets again on June 4, and Saudi Arabia's energy minister said on Tuesday that he would keep short sellers "ouching" and told them to "watch out".
"With the Saudi energy minister once again telling speculators to 'watch out' some (short sellers) may have second thoughts," commented Ole Hansen, head of commodity strategy at Saxo Bank.
The gains added to Monday's advance after a 2.8% increase in US gasoline futures ahead of the Memorial Day holiday on May 29 which traditionally marks the start of the peak summer demand season.
3.15pm: US PMIs diverge
US services sector activity surprisingly picked up last month, while manufacturing unexpectedly shrank, according to S&P Global's latest Purchasing Managers' Index (PMI) surveys.
The US service sector PMI increased to 55.1 in May, up from a reading of 53.4 for April, noticeably better than economists' forecast for a reading of 52.6.
But the PMI for factory activity fell to 48.5 in May from 50.2 in April, below the consensus reading of 50.0.
However, a gauge tracking output from both sectors turned higher as well, rising to 54.5 from 53.4, hitting a 13-month high, and total new orders grew for a third successive month, rising at their fastest pace in a year.
Commenting on the latest survey results, Chris Williamson, chief business economist at S&P Global, said: "The US economic expansion gathered further momentum in May, but an increasing dichotomy is evident.
"While service sector companies are enjoying a surge in post-pandemic demand, especially for travel and leisure, manufacturers are struggling with over-filled warehouses and a dearth of new orders as spending is diverted from goods to services."
2.50pm: Ceiling worries
The FTSE 100 index fell back to its opening levels as US stocks moved lower at the open on Tuesday with investors remaining on edge ahead of the country’s fast-approaching debt ceiling extension deadline, seen as June 1.
Around 20 minutes after the opening bell, the Dow Jones Industrials Average had shed 52 points, or 0.2% at 33,233, while the S&P 500 was also down 0.2%, and the Nasdaq Composite shed 0.2% as well.
FOREX.com market analyst Fiona Cincotta said, given the long Memorial Day holiday weekend at the end of the week, the clock is definitely ticking on the debt ceiling negotiations.
“The closer to the X-date, the more we can expect the default risk to show in the market,” she said.
Meanwhile, earnings season continues with Lowe’s adding 1.8% at the open despite reporting a dip in its first quarter sales and slashing its full-year forecast, while Zoom plunged 6.8% despite posting a quarterly earnings beat.
2.30pm: Crypto regulation approaching
Bitcoin was up 1.5% on Tuesday afternoon, back above $27k at $27,268 as the first global approach to regulating crypto assets was put forward.
The International Organization of Securities Commissions which regulate financial markets has unveiled an 18-point plan to put guardrails around crypto investing.
Susannah Streeter, head of money and markets, Hargreaves Lansdown commented: ‘’This move by the international watchdog which represents authorities regulating financial markets around the world, is aimed at protecting investors but it will also propel crypto further into the mainstream.
"Bitcoin seems to have been bolstered by the news of this concerted effort to regulate the industry, rising by more than 2%. The cryptocurrency has gained 64% since the start of the year, largely recovering from the sharp falls it suffered in the back half of 2022. Despite this volatility, the IOSOC is clearly recognising that digital coins and tokens are here to stay which is why it’s pushing a global approach to governing this risky asset class."
Streeter added: "When FTX collapsed like a house of cards it sent shockwaves - not just through the crypto world - but also the wider financial system as the vast numbers of diverse firms owed money became apparent. The ripple effect sent a shiver through regulatory bodies and prompted this turning point from the IOSOC. It wants to apply the similar stringent rules governing the way equity and bond markets operate to the crypto-sphere covering requirements governing conflicts of interest, operational risks, treatment of market manipulation and the treatment of retail customers.
"This move by the international watchdog comes hot on the heels of MPs calling for the government to treat crypto investments as gambling. The need for regulation could not be clearer, and now the guardrails have been drawn up and now the pressure is growing on individual jurisdictions, including the UK, to come up with a concrete plan to regulate the market."
2.15pm: Round and round Mulberry
Mike Ashley is looking to promote himself to the board of luxury handbag maker Mulberry, sparking a potential battle.
According to the Telegraph newspaper, Ashley met with Mulberry’s chairman Chris Roberts and CEO Thierry Andretta in recent weeks to request a seat at the table, which is yet to be granted or denied.
Ashley, who owns 37% of Mulberry’s AIM-listed shares via Frasers Group, is said to have become frustrated by the lack of transparency surrounding Mulberry’s Asian business.
Singapore-based Malaysian billionaire Ong Beng Seng, and his wife Christina, own the majority 56% stake in Mulberry.
Mulberry signed a deal with Challice, Ongs’ company in Singapore, in 2017 which established a joint venture to expand the handbag maker in the Far East.
Ashley and his advisers are seeking clarity on how the venture operates, including how the Ongs benefit.
Shares in Mulberry have struggled since the collapse of House of Fraser in 2018, which acted as the main UK market for its handbags.
1.30pm: A look at some of today's movers
Fallers
Physiomics - down 23% to 2p: Shares fell after a disappointing trading update. The firm, which uses mathematical models to help develop cancer treatments, has warned that its total income for the financial year ending in June 2023 is expected to fall more than 10% short of its previous guidance of £750k, landing at around £660k.
Trellus Health - down 12% to 6.1p: Shares dropped 7% on a seemingly innocuous (though delayed) set of prelims. The company posted a fairly hefty underlying loss of US$8.1mln for the 12 months that ended 31 December 2022, although we are guided that this was in line with management’s expectations.
Risers
URA Holdings - up 20% to 2.53p: Shares jumped after the firm said it had raised £280,000 through an oversubscribed placing and subscription, issuing 14,000,000 new ordinary shares at a price of 2.00p per share. The fundraise was conducted at a 10% discount to the mid-market closing price on 19 May 2023, and falls within the company's existing authority to issue shares for cash on a non-preemptive basis.
1.00pm: US stocks expected to open lower
Ahead of the start of trading in New York and the FTSE 100 is close to its best levels for the day, up 25 points, at 7,795.
US stocks look set for a weaker start on Tuesday after a key meeting between President Joe Biden and House Speaker Kevin McCarthy still failed to strike a deal on the looming US debt ceiling breach.
In pre-market trading, futures for the Dow Jones Industrial Average (DJIA) were 0.2% lower, while those for the S&P 500 index were down 0.1%, and contracts for the Nasdaq-100 futures also lost 0.1%.
Wall Street put in a mixed session on Monday, with the DJIA losing 0.4%, while the S&P 500 finished little changed, up 0.02%. But the tech-laden Nasdaq Composite added 0.5% and even touched its highest intraday level and highest close since August.
McCarthy and Biden met at the White House on Monday evening, in a discussion that the House speaker described as “productive” and “professional.” Investors have been closely eyeing the debt-limit negotiations in Washington, hoping for more certainty as the so-called X-date of June 1 draws closer.
TickMill Group’s market analyst Patrick Munnelly commented: "While the meeting between US President Biden and House Speaker McCarthy was described as productive, there were no significant breakthroughs."
Investors have a batch of corporate quarterly earnings as a distraction on Tuesday, including numbers from retail stocks Lowe’s, BJ’s Wholesale and Dick’s Sporting Goods.
Meanwhile, on the economic front, data for the manufacturing and services sectors will be eyed, as well as new home sales.
TickMill's Munnelly noted: "Stateside, the Richmond Fed release will provide insights into regional economic activity. Additionally, market participants will closely watch the New Home Sales data for April, following a significant increase of over 9% in March.
"The consensus anticipates a slight decline, and attention will also be given to the months' supply figure, which decreased from 8.4 to 7.6 months' worth previously."
"These data points are expected to shed light on the state of the housing market and provide further indications of economic trends."
He added: "Federal Reserve member Logan, who is a voter in 2023, is scheduled to deliver remarks today. Last week, her hawkish commentary caused a market reaction. However, after Chair Powell's comments on Friday, the market's threshold to anticipate additional hawkishness is higher."
"Powell's remarks have been interpreted as signalling a likelihood of a pause at the June FOMC meeting. The market will closely monitor Logan's remarks for any potential insights into the future direction of monetary policy."
12.32pm: Upgrades follow SSP results
Shares in SSP Group plc (LSE:SSPG) rose more than 3% after reporting a 167% increase in revenue in the four months to 31 January 2023 thanks to a recovery in passenger numbers.
The owner of Upper Crust and Caffè Ritazza recorded revenue of £871mln, 167% greater than the same period last year and 106% higher than in 2019.
The FTSE 250-listed company said the performance was driven by a recovery in passenger numbers which resulted in strong leisure travel demand over the extended holiday season.
Peel Hunt was impressed raising its 2023 pre-tax profit forecast by 9% which assumes 10% sales growth in the second hlaf of the financial year and 7% over the full year. It also raised its 2024 prediction by 8%..
"On our upgraded forecasts, the shares should appreciate by 40% over the next year if this rating is to be retained", the broker commented.
Peel Hunt reiterated a buy rating and increased iuts target price from 325p to 350p.
12.06pm: Bank of England says lessons to be learnt over inflation
Top officials at the Bank of England have conceded there are lessons to be learnt following the central bank’s failure to forecast the rise and persistence of inflation.
“I think there are big lessons about how we operate policy in that world, and in a world of very substantial uncertainty,” the Bank’s Governor Andrew Bailey said.
Questioned by the Treasury select committee, Bailey acknowledged that inflation had already been on the rise before Russia's invasion of Ukraine.
He pointed out The Monetary Policy Committee had been worried about the possibility of rising unemployment as the jobs-supporting furlough programme deployed during the pandemic came to an end in 2021.
He told MPs: "We hold our hand up and say that's a judgment we had to make and it didn't turn out right."
Bank officials also said there were questions over whether policymakers' modeling needed to change given the unexpected persistence of inflation in the aftermath of a series of shocks, from Covid to the energy-price crisis.
Bailey said officials now think economic forecasting models are "too symmetric," as they have predicted that inflation would fall at broadly the same rate that it rose. This has not been the case.
Catherine Mann, the most hawkish member of the Monetary Policy Committee, said models based on 30 years of historical data, which does not encompass another major inflationary period, have been a major limiting factor in forecasts.
She said “the model was never telling us about persistence, primarily because it was estimated on historical data.”
"It is linear, and therefore cannot address some of these behavioural changes that we observed at the micro level," Man added.
11.35am: UK to escape recession - IMF
The UK will escape a recession this year, according to the IMF, noting that the economy had been “buoyed by resilient demand in the context of declining energy prices”.
The Washington-based think tank now expects UK GDP to grow 0.4% in 2023, reflecting stronger wage growth, more supportive fiscal policy and the easing of global energy prices and supply chain blockages.
The fund expects growth of 1% in 2024 and to average 2% in 2025 and 2026.
In January, the IMF predicted in January that the UK economy would shrink by 0.5% between the final quarter of 2022 and the last quarter of this year.
Despite the increase the fund cautioned that Britain risked being stuck with persistent inflation unless interest rates stayed high.
“Economic activity has slowed significantly from last year and inflation remains stubbornly high,” the fund said.
It added: “The outlook for growth, while improving somewhat in recent months, remains subdued.”
Chancellor Jeremy Hunt said: “Today's IMF report shows a big upgrade to the UK's growth forecast and credits our action to restore stability and tame inflation.”
11.22am: US debt ceiling talks end without deal
Talks to broker a deal on the US debt ceiling ended on Monday without a breakthrough although both sides suggested progress had been made.
President Joe Biden and Republican House Speaker Kevin McCarthy met at the White House as they seek an agreement that would a default on US default seen as critical for the fate of the US and global economic outlook and financial markets.
“I think the tone tonight was better than any other time we’ve had discussions . . . we still will have some philosophical differences, but I felt it was productive,” McCarthy told reporters at the White House after the meeting.
“We know the deadline. I think the president and I are going to talk every day . . . until we get this done.”
Biden later issued his own statement with a similar assessment. “I just concluded a productive meeting with Speaker McCarthy about the need to prevent default and avoid a catastrophe for our economy,” Biden said.
“We reiterated once again that default is off the table and the only way to move forward is in good faith toward a bipartisan agreement.
Russ Mould at AJ Bell said: “Experience tells investors that these stand-offs always end with a last-minute deal so the market is mostly taking this saga in its stride, particularly given commentary from both sides seems to be increasingly conciliatory.”
“Just how close Washington must push for there to be a genuine fear of default is an open question, but right up to the eleventh hour, or in other words the end of this month, the expectation is likely to remain that a deal will be done.”
Meanwhile, the FTSE 100 remains in the greem up 10 points.
10.51am: Shell's AGM disrupted by climate protestors
Shell's AGM is underway, well it would be but it has been held up by climate change protestors.
A group of activists have launched into a chorus of “Go to hell, Shell”, to the tune of Hit the Road Jack by Ray Charles, obviously trying to outdo protestors at the Barclays AGM who adapted a Spice Girls tune to make their opposition in song. Perhaps an album will be forthcoming.
Shell's Chair Andrew Mackenzie has repeatedly asked the protestors to sit down.
The song was followed by a chant of “shut down Shell”, and “we hate Jackdaw” - a reference to its North Sea oil field. “We have heard you loud and clear,” Mackenzie said. 20 minutes in, there are still protestors being escorted from the room.
Large coordinated singalong in the @Shell AGM security moving to remove them pic.twitter.com/KwZaHkOcQB
— Hannah Thomas-Peter (@hannahtpsky) May 23, 2023
10.32am: Services sector underpins private sector growth
May’s PMIs suggests that the economy is being supported by the services sector while manufacturing activity continues to struggle, according to Capital Economics.
Ashley Webb UK Economist also felt the strength in services activity may be feeding into more persistent domestic inflationary pressures, which may increase the pressure on the Bank of England to raise rates above 4.50% at the next policy meeting in June.
Webb estimated the the flash UK composite PMI figure of 53.9 in May was still consistent with a 0.4% q/q rise in real activity in the second quarter.
Activity is being supported by the services sector, although momentum is easing while the manufacturing output balance declined.
Overall, May’s flash composite PMI suggests that the economy is still proving resilient to higher interest rates and that inflationary pressures may be easing only slowly, Webb said.
"We think the Bank will need to keep rates high for all of this year to generate more economic weakness required to reduce inflation all the way to the 2.0% target," he added.
9.38am: UK private sector expands at slower pace in May
The UK’s private sector continued to grow in May albeit at a slower pace than in April, figures showed.
The headline seasonally adjusted S&P Global/CIPS Flash UK composite output index registered 53.9 in May, down from April’s 12-month high of 54.9 but still above the crucial 50.0 no-change threshold.
May data signalled another solid improvement in the #UK private sector (#PMI at 53.9; Apr: 54.9), but the rate of expansion eased from April and the divergence between the #manufacturing and #service economies widened. Read more: https://t.co/a9osXOW0Eg pic.twitter.com/qP2yOxKRWq
— S&P Global PMI™ (@SPGlobalPMI) May 23, 2023
Growth remained centred on the service sector, with travel, leisure and hospitality businesses widely commenting on resilient consumer demand.
In contrast, manufacturing firms indicated the steepest reduction in production levels for four months.
The flash UK Services PMI Index was 55.1 in May down from 55.9 in April while the UK manufacturing PMI fell to 46.9 in May from 47.8 in April.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence said: “The UK economy enjoyed another month of strong growth in May, with the expansion continuing to be driven by surging post-pandemic demand in the service sector, notably from consumers and for financial services, with hospitality activities buoyed further by the Coronation.”
“The surveys are consistent with GDP rising 0.4% in the second quarter after a 0.1% rise in the first quarter.”
9.28am: RS slips, current trading reflects slowing in industrial growth
Shares in RS Group PLC (LSE:RS1) slipped 3.5% placing top of the FTSE 100 fallers despite solid looking annual results.
In the year to March 31, the firm reported a 17% increase in pre-tax profit to £390.7mln, a 16% rise in EPS to 60.4p and raised the dividend 16% to 20.9p.
But the firm cautioned trading over the first seven weeks of 2023/24 reflects a slowing in industrial growth, as indicated by PMI data, and continued weakness and aggressive competition in electronics.
Nonetheless RS remains comfortable with current consensus profit expectations but said performance would be more weighted to the second half.
9.13am: Drax rises on US expansion
Drax Group (LSE:DRX) PLC shares rose 2% afer it announced a major push into the US helped by tax incentives under the Inflation Reduction Act.
The FTSE 250 company has picked two sites in the southern US to build new biomass-fuelled power stations, each costing about $2bn to develop, with the carbon dioxide emissions captured and stored.
It is also evaluating nine additional sites in US for greenfield and brownfield BECCS.
In a statement ahead of a Capital Markets Day the company also said that adjusted EBITDA remains in line with analysts' consensus estimates.
8.57am: Footsie subdued, Pennon falls on Ofwat probe
The Footsie remains the wrong side of the line in early exchanges, now down 12 points at 7,759.47, as the US debt ceiling talks rumble on with no breakthrough yet.
Susannah Streeter at Hargreaves Lansdown said: "Debt ceiling talks are inching forward, but it’s slow progress, and with uncertainty hanging in the air, gains on equity markets are being held back. The FTSE 100 has opened lower, following on from a weaker session in Asia and lackluster trading on Wall Street."
BT Group PLC (LSE:BT.A) has moved back to parity following news billionaire businessman Patric Drahi has increased his stake in the UK telco to 24.5%.
Victoria Scholar, head of investment, interactive investor commented: "Clearly Altice UK judged that now is an opportune moment to acquire further shares at an attractive price point with the stock down several percent since last week."
But Pennon Group slipped 3% after Ofwat announced an investigation into South West Water's 2021/22 operational performance data relating to leakage and per capita consumption.
Pennon said "this operational performance data was reported in South West Water's Annual Performance Report 2021/22."
It pledged to work "openly and constructively with Ofwat to comply with the formal notice issued to South West Water as part of this investigation."
8.35am: Food price inflation slows marginally but remains high
Grocery price inflation fell for the second month in a row – but is still adding an extra £833 to the average consumer’s annual bill, according to latest figures.
Prices over the four weeks to May 14 were 17.2% higher than a year ago, down from April’s 17.3%, Kantar reported - still the third fastest rate of grocery inflation reported since 2008.
Fraser McKevitt, head of retail and consumer insight at Kantar’s said: "This could add an extra £833 to the average household’s annual grocery bill if consumers don’t shop in different ways."
“Of course, shoppers are savvy and they’re skirting higher prices by choosing more own-label goods," he added.
He pointed out these lines grew by 15.2% this month, almost double that of branded products which rose by 8.3%.
Kantar said that the average cost of four pints of milk has come down by 8p since last month, but is still 30p higher than this time last year at £1.60. Several supermarket chains have trumpeted price cuts for milk recently.
The coronation boosted grocery sales by 16% during the week of the coronation, with an extra £218mln million passing through the tills with sparkling and still wine especially popular. Sales of these products climbed by 129% and 33% respectively.
Waitrose a beneficiary from the celebrations with sales up by 4.8% over the 12 weeks, the highest rate of growth the retailer has achieved since April 2021. Its market share is now 4.6%.
Meanwhile, Aldi was the fastest-growing grocer this month, with sales up by 24.0%, while Lidl’s sales increased by 23.2%.
The two discounters now account for 17.8% of the market, with Aldi’s share at 10.1% and Lidl at 7.7%.
Asda grew by 10.6% and its market share now stands at 13.9%, a rise of 0.1 percentage points when compared to the same 12 weeks last year while Morrisons took an 8.7% share this period, its third consecutive period of sales growth.
The UK's largest supermarket, Tesco, saw sales increased by 8.9% giving a 27.1% share of the market while Sainsbury’s sales rose by 10.5% leaving its market share steady at 14.8%.
Convenience specialist Co-op nudged up its sales by 2.9%, Iceland by 9.1% and online only retailer Ocado by 5.6%.
8.17am: FTSE 100 eases but BT gains as Drahi ups stake
The FTSE 100 fell back in early exchanges as debt ceiling talks in the US ended with no deal and figures showed the UK government borrowed more than expected in April.
At 8.15am London’s lead index was trading down 13.74 points at 7,757.25 while the FTSE 250 inched higher to 19,280.06, up 6.72 points.
Richard Hunter, head of markets at interactive investor, commented “Ongoing debt ceiling negotiations left investors sitting on their hands and unwilling to commit in the absence of an agreed resolution.”
The government borrowed more than expected at the start of the 2023-24 financial year as rising benefit payments, the additional costs of the energy support schemes levels and higher debt interest pushed up public spending.
Figures from the Office for National Statistics showed public sector net borrowing stood at £25.6bn in April, higher than the Office for Budget Responsibility’s (ONS) estimate of £22.4bn and £11.9bn more than a year earlier.
The EY ITEM Club said the figures raise “the risk that borrowing over the full fiscal year could be higher than the Office for Budget Responsibility's latest forecast due to higher inflation and interest rates.”
However, the economics bureau felt “the factors that could cause borrowing to overshoot this year should prove temporary and so will be of little relevance to fiscal policy choices.”
BT Group PLC (LSE:BT.A) advanced 1.7% to 150.40p after its biggest shareholder Altice increased its stake after swooping for a further 650mln shares.
Altice, owned by Billionaire Patrick Drahi, now holds around 24.5% of the UK telco but reiterated it does not intend to make a bid for the firm.
Drahi took an initial 12.1% stake in June 2021 citing the opportunity presented by the national rollout of next generation broadband, and then increased it to 18% later that year.
7.56am: UK government borrows more than expected in April
The government borrowed more than expected at the start of the 2023-24 financial year as rising benefit payments, the additional costs of the energy support schemes levels and higher debt interest pushed up public spending.
Figures from the Office for National Statistics showed public sector net borrowing stood at £25.6bn in April, higher than the Office for Budget Responsibility’s (ONS) estimate of £22.4bn and £11.9bn more than a year earlier.
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It was the second-highest April borrowing since monthly records began in 1993, the ONS said.
Central government debt interest payable was £9.8bn in April, £3.1bn more than April 2022 and the highest April figure since monthly records began in 1997.
Social security benefits payments in April were £25.4bn, £4.5bn than in April 2022, reflecting the 10.1% rise in benefit levels in April.
Energy support payments of £3.9bn in April were £1.8bn more than in the April 2022.
7.44am: Indivior's opiod treatment gets green light from US FDA
Indivior PLC (LSE:INDV) has announced that the US Food and Drug Administration approved its Opvee (nalmefene) nasal spray for the emergency treatment of known or suspected opioid overdoses induced by natural or synthetic opioids.
The ruling covers adults and pediatric patients aged 12 years and older.
Opvee is expected to be in the market in the fourth quarter with annual net revenue of $150mln to $250mln expected.
Indivior added Opvee to its portfolio with the acquisition of Opiant Pharmaceuticals which closed in March.
7.28am: Altice increases stake in BT to 24.5%
BT Group PLC (LSE:BT.A)’s biggest shareholder Altice has increased its stake after swooping for a further 650mln shares.
Altice, owned by Billionaire Patrick Drahi, now holds around 24.5% of the UK telco but reiterated it does not intend to make a bid for the firm.
Drahi took an initial 12.1% stake in June 2021 citing the opportunity presented by the national rollout of next-generation broadband, and then increased it to 18% later that year.
Shares in BT fell heavily last week after the company unveiled plans to cut between 40,000 and 55,000 jobs - up to 42% of its workforce - by the end of the decade as it looks to trim costs and become a “leaner business with a brighter future”.
The firm said the reductions, which include both employees and third-party contractors, would be completed between 2028 and 2030.
7.05am: FTSE 100 seen flat
The FTSE 100 is expected to open flat on Tuesday after a mixed showing in the US after crunch talks in the US on the debt ceiling failed to produce a deal.
Spread betting companies are calling London’s lead index unchanged.
In the US, the Dow closed Monday down 140 points, 0.4%, at 33,267, while the Nasdaq Composite rose 63 points, 0.5%, to 12,721 and the S&P 500 ended flat at 4,193.
Talks on raising the US debt ceiling in time to prevent the country from defaulting concluded without a deal on Monday, but both Republican leader Kevin McCarthy and President Joe Biden expressed optimism.
"I felt we had a productive discussion. We don't have an agreement yet, but I did feel the discussion was productive in areas (where) we have differences of opinion," House Speaker McCarthy said after the talks.
In Asia on Tuesday, the Nikkei 225 index was down 0.6%. In China, the Shanghai Composite was 1.0% lower, while the Hang Seng index in Hong Kong declined 0.7%.
Back in London and the early focus will results from RS Group while a PMI readings is also due.