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Reports UK

UK stock market morning note (June 03, 2014)

June 3, 2014, Tuesday, 09:31 GMT | 04:31 EST | 13:01 IST | 15:31 SGT
Contributed by SVS Securities

The FTSE 100 is called to open lower this morning ahead of further economic data due out and following the news overnight that the HSBC final Chinese manufacturing PMI reading came in at 49.4, still below the key 50 expansion mark level. Today's economic diary now focuses on the UK with the release of the PMI construction figures. Commodity prices are mixed and on the foreign exchanges, the pound is slightly weaker against both the dollar and the euro.


Company Announcements

Wolseley

Q3 IMS reports that revenue from its ongoing businesses at GBP3.04bn was ahead 6% on last year at constant exchange rates including lfl growth of 5.1%. The gross margin at 28.1% was 10 bps ahead of last year and trading profit grew 9.1% to GBP155m. Foreign exchange movements adversely impacted the latter by GBP12m. It noted that it continued to make good progress in the period with strong growth in the US and the Nordics offsetting more challenging conditions elsewhere. It added that the overall lfl revenue growth rate in May had been 'broadly in line' with the year to date. The US has continued to grow, whilst market conditions remain 'more challenging' in Continental Europe, and expects the group lfl revenue growth rate for the next 6 months to be about 4%.

AstraZeneca

It has provided an update on its oncology pipeline confirming weekend press reports that data from the large phase I study of AZD9291, its lung cancer drug showed tumours shrinking or becoming more stable in 94% of cases. The company anticipates filing for regulatory approval in the US for AZD9291 in H2 2015 or potentially as early as Q1. In addition, data from a phase II study by the US National Cancer Institute (NCI) showed that a combination of two of Astra's experimental drugs helped ovarian cancer patients to live longer. It added that the company supports the NCI's plans to move the combination forward into phase III development.