GlaxoSmithKline will sell up to 240 million shares of owner Sensodyne Haleon, which spun off the pharmaceutical giant last year.
After the split, GSK retained a 12.5% stake, but it said it now plans to sell about 240 million shares, or a 2.5% stake.
Haleon shares closed at 343.3p today in London, but its New York shares fell nearly 3% following the announcement.
FTSE closed at 7731
The FTSE closed down 0.1% at 77:31 am today, after the Bank of England gave a small indication that it was finished raising interest rates.
London’s blue-chip index hit 7783 in the morning, but started to slide even before the announcement from Threadneedle Street.
After dropping to as low as 7683, it rose slightly in the afternoon.
Smurfit Kappa is the early riser of the day. Rolls Royce and Airtel Africa, both releasing trading updates today, were the biggest losers.
State pension age could rise to 68 by ‘2040 or later,’ says Mel Stride
The Work and Pensions Secretary said the state pension age is not likely to rise to 68 until the 2040s – but that is not a decision by the current UK Government.
Mel Stride said there was “no reason you need to make a decision right now” on any changes, and pledged to notify voters 10 years in advance.
The increase in the state pension age from 66 to 67 will take place between 2026 and 2028, a move that has been legislated since 2014.
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US stocks slide
Stocks on Wall Street fell today after fresh jobs data and inflation.
The S&P 500 fell 0.5% to 4116, while the Dow Jones fell 1% to 33,197 as Disney shares plunged. Nasdaq performed better, but still fell 0.1% to 12293.
The drop came as US initial jobless claims hit the highest level since October 2021, while producer price inflation stood at 0.2% in April, slightly lower. than expected.
Revolut CFO quits a few weeks after BDO auditor warned about accounts
Revolut’s chief financial officer left the company just weeks after the company’s auditor said it could not independently verify three-quarters of the revenue in the company’s 2021 accounts.
Mikko Salovaara, who was first appointed CFO in April 2021, said he will be leaving the London fintech for personal reasons.
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Heathrow and airlines allowed to appeal CAA limit
Heathrow Airport and three major airlines have been allowed to appeal the Civil Aviation Authority’s limit on how much the airport can charge airlines operating flights from.
The CAA announced the cap would last until 2026 in March, but Heathrow bosses quickly made the decision and said they would appeal.
However, major airlines British Airways, Delta and Virgin are also allowed to appeal.
British Pound falls back from high
The pound fell back against the dollar amid the latest interest rate outlook, after hitting a one-year high.
One pound now buys $1.2544, still well above where it has been for most of the past year but down nearly 1.5c from yesterday’s high. The British pound buys €1.1488 and 168.17 yen.
Where will interest rates go next?
Paul Dales, chief UK economist at Capital Economics, still believes today’s rate hike will be the last of the current cycle. However, he then expects rates to stay at 4.5% for a long time, before cutting rates quite sharply.
“The 25 basis point increase in interest rates today from 4.25% to 4.50% puts rates in our long-held forecast and could be the last hike, although there could be another one,” he said. or two more increases. “We think the next holding period will be quite long, lasting until the first half of next year. But we think the future cutback period will be stronger than the market valuation with the rate falling to 3.00% by the end of 2024 instead of 4.00%.
US stocks start mixed
Shares of US-listed companies got off to a mixed start today, after jobless claims were higher than expected.
Dow Jones futures fell 0.4% to 33459, while S&P 500 futures were close to 4147. Nasdaq futures, however, rose 0.2% to 13433.
Among the biggest gainers before the market was 1-800-FLOWERS, while regional lender PacWest was among the biggest losers.
Highest number of US jobless claims since 2021
US weekly jobless claims rose to 264,000 in the past week, despite expectations that claims would stay flat.
“Initial jobless claims were much higher than expected, at 264K vs. 245K expected – the highest level since 2021,” said Ryan Brandham, Head of Capital Markets. Global, North America at Validus Risk Management, said. “The impact from the 2022-23 rate hike cycle in the US could ultimately impact a surprisingly tight labor market, while also underpinning the US plan to pause further rate hikes. Fed.”