Proactive Investors -
- FTSE 100 up 11 points at 7,485
- Eurozone inflation stronger-than-expected
- Business confidencce at 18-month high
US inflation data in line
US consumer inflation picked up slightly in July, but was exactly as expected, according to the measure that is known to be favoured by the Federal Reserve.
The personal consumption expenditures index rose by 4.2% in the year to July, the US Bureau of Economic Analysis said, compared to annual growth of 4.1% in June. The index rose by 0.2%in July when compared to June.
US PCE Core Deflator (M/M) Jul: 0.2% (exp 0.2%; prev 0.2%)- US PCE Core Deflator (Y/Y) Jul: 3.3% (exp 3.3%; prev 3.0%)
- US PCE Deflator (M/M) Jul: 0.2% (exp 0.2%; prev 0.2%)
- US PCE Deflator (Y/Y) Jul: 4.2% (exp 4.2%; prev 4.1%)
— LiveSquawk (@LiveSquawk) August 31, 2023
The core deflator rose 0.2% in July compared to June, and by 3.3% on an annual basis, higher than June's 3.0%.
Separate data showed weekly jobless claims dropping to 228,000, short of estimates, of 235,000 in the week ended August 26, and compared with 230,000 claims a week earlier.
Futures have climbed after the data with all three major indices looking set to open higher.
More AstraZeneca drugs to be added to US IRA list, Barclays predicts
AstraZeneca (NASDAQ:AZN) PLC faces several negative headwinds for US sales of some of its drugs from the new Inflation Reduction Act's rules on negotiated price cuts, according to Barclays (LON:BARC), with a lesser impact for GSK PLC.
Key measures in the new rules, according to analysts at the bank, include capping annual price increases to inflation rates, altering coverage gap rebates, and initiating direct drug price negotiation from 2026.
The first list of 10 drugs was announced on Tuesday with "limited impact" on EU pharma for the products, which includes Novartis (LON:0QLR)' Entresto, AstraZeneca's Farxiga and Novo's Novolog/Fiasp.
Glencore faces damages demand from investors
Shares in Glencore (LON:GLEN) PLC are firmly in the red after dozens of the world’s biggest asset managers accused it of lying in past share prospectuses to cover up corrupt activities, according to reports.
The stock, which is also trading ex-dividend today, is down 4.6% after the Financial Times reported an escalation in an action in London’s High Court that could have significant ramifications for the natural resources industry.
Nearly 200 funds - including some managed by Fidelity, Vanguard, Legal & General, HSBC (LON:HSBA), Abrdn and Invesco - are seeking damages from Glencore over allegations that the company and its senior leadership made misleading statements that covered up corrupt activities, the report said.
The claimants allege they “suffered loss” as a result of “untrue statements” and omissions in Glencore’s 2011 prospectus for its listing on the London Stock Exchange and the later, 2013 prospectus for its merger with Xstrata.
The long list of claimants includes sovereign wealth funds such as GIC, Norges Bank, Mubadala, Aabar Holdings, Kuwait Investment Authority, and Oman Investment Authority.
Dozens of pension funds have also joined, including Scottish Widows, Ontario Pension Board, and BP (LON:BP) and Shell (LON:RDSa) pension funds.
The 197 funds listed as claimants allege they suffered losses because of “untrue and misleading statements” that covered up corrupt practices within the company.