LIVE TRADING: Markets prepare for budget; Next profits will exceed £1 billion; GSK vaccine sales fall

A major fire has broken out at the BAE Systems shipyard that builds Britain’s nuclear submarines, but there is no major risk from the incident, police said on Wednesday.

Images online showed what looked like flames and black smoke emerging from the top of the massive Devonshire Dock Hall building, visible from miles away. According to the company, with an area of ​​approximately six acres, it is the second largest shipbuilding complex of its kind in Europe.

Police in Cumbria, northwest England, said in a statement that two people had been taken to hospital after suffering suspected smoke inhalation and that there were no other victims.

Police said emergency services were called to the scene at 00:44 GMT.

Online trading platforms suffered a pre-Budget sell-off yesterday amid fears over the contents of the Chancellor’s red box.

While businesses and households have plenty to worry about – from higher employer national insurance contributions to an increase in bus fares – companies such as CMC Markets and IG Group have been hit by speculation about what might happen. with capital gains tax.

Last week, Keir Starmer sparked outrage when he insisted that anyone who owns shares is not a “working person”, implying they are easy prey for a revenue-hungry Treasury.

GSK has lowered its 2024 vaccine sales forecast for the second time this year, hit by weak demand for its respiratory syncytial virus (RSV) and shingles vaccines.

The British drugmaker now expects vaccine sales in 2024 to decline by a low-single-digit percentage of turnover. He had previously expected the business to grow by a low- to mid-single-digit percentage.

The company reported core earnings per share of 49.7p on sales of £8bn for the three months to September 30, compared with EPS of 43.6p on sales of around £8bn forecast by the analysts.

It left full-year earnings and sales forecasts unchanged.

“Strong growth in specialty medicines helped offset lower vaccine sales and reflected the success of new product launches in oncology and HIV,” GSK CEO Emma Walmsley said in a statement.

Next expects annual profits to exceed £1bn as the fashion retailer updated its guidance for the third time in four months on Wednesday.

The group said the improvement reflected a better-than-expected 7.6 percent increase in third-quarter total sales price, driven by the early arrival of colder weather this year, compared with a September and early October unusually warm last year.

Susannah Streeter, head of money and markets, Hargreaves Lansdown:

‘The FTSE 100 looks set to open lower, as uncertainty swirls over the content of the UK budget, the first by a Labor Chancellor in 14 years.

‘UK investors are braced for a series of tax rises to fill a gaping black hole in the UK government’s finances. There is speculation that Rachel Reeves will try to find ways to increase revenue and cut spending to cover a deficit of up to £40bn.

‘Details of how borrowing rules will be changed to allow the government to borrow more without breaching its self-imposed borrowing limits will be announced.

“This strategy has been widely pursued to prevent a temperamental attitude from bond investors from breaking out, and so far, it appears to have worked, although the institutions that finance government borrowing will keep a close eye on how the growing budget will be spent.” of investment.

‘Bond traders have reckoned that their planned budget plans will push UK government bond issuance towards £300bn this year, around a 6% rise on the current target.

‘Any sign of profligacy may well be punished by investors demanding higher returns on holding UK debt. Nervousness has already increased, with UK bond yields rising to around 4.3%, but still below levels reached in July.

‘Part of this rise is due to changing interest rate expectations and, overall, markets still appear confident that the Chancellor will continue to focus on building a reputation for prudence and responsibility. The investment pledges announced today appear unlikely to maximize the government’s new credit line under the rule change.’

Rachel Reeves was accused last night of turning her back on economic growth as businesses prepare for a budget attack that will drive up costs and threaten livelihoods.

The Chancellor will today hit British businesses with an increase in employers’ national insurance contributions of up to 2p, having previously branded the rate an “employment tax”.

The national insurance raid – which could raise up to £20bn – is accompanied by a 6.7 per cent rise in the minimum wage to stamp out inflation and a workers’ rights package costing businesses £5bn. pounds per year.