4th Jul 2025 07:58
(Alliance News) - London's FTSE 100 is called lower on Friday, as investors await a potential US announcement on tariff rates for trading partners and the UK prime minister reflects on his "good relationship" with US President Donald Trump.
In early corporate news, AstraZeneca receives EU approval for a bladder cancer therapy, and a subdued housing market leaves MJ Gleeson eyeing adjusted pretax profit at the lower end of current market expectations for the year ahead.
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.3% at 8,799.80
GBP: up at USD1.3678 (USD1.3654 at previous London equities close)
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ECONOMICS
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Keir Starmer said he has a good relationship with US President Donald Trump because they both "care about family". The UK prime minister told the BBC Radio 4 podcast Political Thinking With Nick Robinson it was "in the national interest" for the two men to connect. He said: "We are different people and we've got different political backgrounds and leanings, but we do have a good relationship and that comes from a numbers of places. "I think I do understand what anchors the president, what he really cares about. For both of us, we really care about family and there's a point of connection there." Starmer said in the interview to mark a year in office he has a "good personal relationship" with Trump, and revealed the first time they spoke was after the then-presidential candidate was shot at a campaign rally in July last year. He said Trump had returned the phone call a few days after the prime minister's brother Nick had died on Boxing Day. Starmer said he secretly visited his 60-year-old brother before and after the general election during his cancer treatment. He said: "It's really hard to lose your brother to cancer. I wanted fiercely to protect him. And that's why both before the election and after the election, I went secretly to see him at home, secretly to see him in hospital. He was in intensive care for a long time." Addressing recent political turmoil, Starmer said he will always "carry the can" as leader after coming under fire over a climbdown on welfare reforms and that he would "always take responsibility" when asked questions.
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BROKER RATINGS
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Berenberg raises Softcat to 'buy' (hold) - price target 1,900 (1,600) pence
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JPMorgan reinitiates Drax with 'overweight' - price target 1,000 pence
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RBC raises TT Electronics price target to 120 (85) pence - 'sector perform'
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COMPANIES - FTSE 100
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AstraZeneca receives approval in the EU for Imfinzi, or durvalumab, in the treatment of adult patients with resectable muscle-invasive bladder cancer. This is in combination with gemcitabine and cisplatin as a neoadjuvant treatment, and followed by Imfinzi as a monotherapy adjuvant treatment after radical cystectomy, which is surgery to remove the bladder. The approval is granted based on the results of AstraZeneca's Niagara phase 3 trial, and the positive opinion of the Committee for Medicinal Products for Human Use. Imfinzi demonstrates a 32% reduction in the risk of disease progression, recurrence or death compared to neoadjuvant chemotherapy with radical cystectomy alone. "Imfinzi is poised to transform the standard of care for muscle-invasive bladder cancer in Europe as the first and only perioperative immunotherapy for these patients," says Dave Fredrickson, Executive Vice President, Oncology Haematology Business Unit at AstraZeneca. "In the Niagara phase 3 trial, more than 80 per cent of patients were still alive two years after treatment with the Imfinzi regimen, setting a new survival benchmark for a disease that has seen few treatment advances in decades." In 2024, more than 35,000 people were treated for MIBC in five major European countries.
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COMPANIES - FTSE 250
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Future refinances its GBP300 million revolving credit facility on the same terms as its existing facility, with a four-year tenor and two one-year extension options. The online magazine publisher also launches and prices its debut GBP300 million five-year unsecured bond, maturing in 2030. Net proceeds of the bond will be used for general working purposes, including refinancing the firm's export development guarantee facility and to repay amounts drawn under its RCFs.
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OTHER COMPANIES
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MJ Gleeson expects to deliver pretax profit before exceptional items between GBP21.0 million and GBP22.5 million for the year that ended June 30. At worst, this would be a 15% decline from GBP24.8 million the year before, due to "the cumulative impact of a number of headwinds". This includes increased building costs, flat selling prices, as well as the use of incentives and several bulk sale transactions, plus planning delays and the absence of an anticipated wider market recovery, the company explains. The firm completes 1,793 home sales during the year, up 1.2% from 1,772 homes the year before, and expects to post an operating profit within current market expectations of GBP21.7 million to GBP23.0 million. This stands against GBP30.3 million in operating profit a year prior. Looking ahead, MJ Gleeson expects financial 2026 pretax profit before exceptional items to be at the lower end of current market expectations, at around GBP24.5 million. "This was a challenging year for Gleeson," says Chief Executive Officer Graham Prothero. "As well as external factors, it had become clear that our commercial delivery was not where we needed it to be. Over the last nine months we have therefore been implementing at pace management changes which will significantly benefit the business through FY2026 and beyond. These changes will also ensure the delivery of our strategic objectives. Whilst we do not expect any significant economic recovery in the short-term, we are maintaining a robust sales rate." The firm taps interim Chair Fiona Goldsmith to become chair with immediate effect. Goldsmith has previously held senior executive finance roles at First Choice Holidays and Land Securities.
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Rosebank Industries anticipates a 30% jump in its market capitalisation to around GBP1.22 billion upon its readmission to London's AIM market, which it expects to take place during the third quarter of 2025. This will follow its reverse takeover of Saint Louis, Missouri-based electrical systems manufacturer Electrical Components International. Rosebank at the beginning of June confirmed it plans to raise GBP1.14 billion to fund the acquisition, comprising an institutional placing in the UK and elsewhere and a private placement to a limited number of institutional investors in the US, plus USD900 million of new debt facilities split across a USD400 million term loan and a USD500 million revolving credit facility. Rosebank also intends to raise up to EUR8 million through an open offer.
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Good Life Plus says its pretax loss widened to GBP4.2 million in the year that ended January 31, from GBP4.0 million the prior year, as administrative expenses jump 43% to GBP7.0 million from GBP4.9 million. Revenue rises 58% to GBP3.8 million from GBP2.4 million. "We are pleased with our topline growth, albeit we have widened our losses as a result of planned investment in marketing, key investment in people and technical infrastructure," says Chair David Craven. "This means we are able to now deliver on high paced growth and see significant scope for expansion in many markets. The results of the period demonstrate our ability to deliver a standout product in a relatively crowded marketplace...We look forward to scaling progressively, to further partnership activity and the potential of mid-term growth in untapped markets."
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By Emily Parsons, Alliance News reporter
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