Brexit uncertainty making things difficult for RBS, AstraZeneca turns in a strong first quarter
London open
The FTSE 100 is expected to open nine points higher on Friday, having closed down 0.5% at 7,434.13 on Thursday.
Stocks to watch
Investment platform company AJ Bell said it expected interim results to be slightly ahead of expectations as total assets under administration rose 8% to £47.7bn in the second quarter. Total customer numbers increased 5% in the quarter to 214,853 with growth driven by the platform business, the company said in a trading update.
Royal Bank of Scotland warned uncertainty over Brexit would make trading more difficult as falling revenue drove a 16% fall in first-quarter profit. Operating profit before tax for the three months to the end of March dropped to £1.01bn from £1.21bn a year earlier as total income fell to £3.04bn from £3.30bn.
AstraZeneca reported “strong” top-line performance in its first quarter on Friday, with product sales growth of 10% to $5.47bn, which the board said was a reflection of the sustained performance of new medicines. The FTSE 100 pharmaceuticals giant said global oncology sales increased 54%, New cardiovascular, renal and metabolism by 15% and - driven by the strength of ‘Fasenra’ - respiratory sales increased 9%. Reported earnings per share totalled 47 US cents, based on a weighted-average number of shares of 1,267m, which the firm said represented an increase of 75%.
Advertising group WPP backed its 2019 guidance as it posted a rise in first-quarter revenue but a drop in like-for-like revenue due to "significant" client losses last year, particularly in the US. Revenue was up 0.9% from the same period a year ago to £3.6bn, but LFL revenue declined 1.3%.
Newspaper round-up
The government has come under fire for its “outrageous” failure to back a mandatory levy on betting firms to increase funding for addiction treatment, in defiance of a call from the industry’s regulator. Labour’s deputy leader, Tom Watson, accused the government of “dragging its heels”, after the sports minister, Mims Davies, said in a speech that the existing voluntary levy “does work”, moments after the chair of the Gambling Commission said the opposite. – Guardian
Cabinet members who were at Tuesday’s National Security Council (NSC) have been sent an ultimatum by Whitehall’s most powerful official to confess or deny whether they leaked a controversial decision to allow Chinese telecoms firm Huawei to help build the UK’s 5G phone network. Cabinet secretary Sir Mark Sedwill is understood to have written to those present and demanded that they tell him by 2pm whether they were involved and would be willing to cooperate with an inquiry, prompting the five prime suspects to scramble to “categorically deny” that they were behind the leak. – Guardian
Pensioners’ incomes have soared above inflation in the past 12 years even as working-age families have struggled to keep their earnings growing faster than prices. Retired households’ disposable incomes jumped by almost 60pc between 2005-06 and 2017-18, even as the cost of living climbed by just under 40pc - effectively making them around a fifth better off. – Telegraph
Only one in five Scottish voters support Nicola Sturgeon's demand this week for a second independence referendum within two years, according to an opinion poll showing declining support for separation. The poll, conducted by Survation, found 21 per cent backed the First Minister's blueprint for another vote on leaving the UK being staged before the May 2021 Holyrood election. – Telegraph
Sainsbury’s faces a hit of about £50 million after the competition regulator blocked its £12 billion merger with rival supermarket Asda over fears that the deal would lead to price rises. The FTSE 100 grocer, which is led by Mike Coupe, has spent millions in fees to bankers and lawyers for their work on the proposed tie-up. – The Times
US close
Wall Street turned in a mixed performance on Thursday after Dow constituent 3M reported earnings much lower than estimates on the Street.
At the close, the Dow Jones Industrial Average was down 0.51% at 26,462.08, while the S&P 500 closed 0.04% weaker at 2,926.17. The Nasdaq Composite, however, ended the session 0.21% firmer at 8,118.68.
The Dow closed 134 points following on from losses in Wednesday's session as 3M shares slumped 13.04% after the group posted weaker-than-expected first quarter earnings per share and announced details of its restructuring plan, including 2,000 job cuts.
Xerox was 4.34% weaker at the end of the session as its latest quarterly numbers topped earnings estimates but fell short on revenues, while US carrier Southwest closed 0.81% higher despite falling short on estimates for its EPS.
After the bell Amazon inched ahead 0.30% in extended trading after the online retail giant reported a huge beat on profits and matched estimates for revenue in its first-quarter earnings results.