Glaxosmithkline Share News (GSK)

LONDON (Alliance News) - Stock prices in London are seen opening lower on Thursday after the US Federal Reserve raised interest rates on Wednesday, as Rolls-Royce confirmed plans to cut jobs under restructuring plans to simplify the business and retailer N Brown will move entirely online as it opens consultations to close all 20 of its stores. IG futures indicate the FTSE 100 index is to open down 32.41 points at 7,671.30. The blue chip index closed down 0.10 points at 7,703.71 on Wednesday. In early UK corporate news, Rolls-Royce Holdings pressed ahead with its strategy of becoming a "simpler, leaner and more agile organisation" as it announced plans to cut 4,600 management and support jobs predominantly in UK as part of restructuring plans. The jet engine maker said the cuts would occur across corporate and support functions and it expects to incur GBP500 million in one-time restructuring costs. Rolls Royce targets to save around GBP400 million per annum by the end of 2020. The company added that current trading is in line with expectations. "These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around GBP1 billion by around 2020. After a decade of significant investment we are committed to delivering improved returns while continuing to invest in the innovation needed to realise our long-term aspiration to be the world's leading industrial technology company," said Chief Executive Warren East. GlaxoSmithKline said ViiV Healthcare reported positive results from its phase III GEMINI study programme. The phase III studies for dolutegravir and lamivudine HIV medicines, demonstrated the ability to control HIV with a two-drug regimen in treatment naive HIV-1 infected adults.The GEMINI studies are part of ViiV Healthcare's clinical trial programme for two-drug regimens that seeks to address long-term toxicity concerns of people living with HIV by reducing the number of medicines used in their treatment, the company said. N Brown Group said has started the consultation process to consider closure of its 20 stores, as it shifts to becoming an online-focused retailer. The company said the store estate has continued to see disappointing footfall."We anticipate that the consultation process will be completed around the time of our half year results in October. Should the decision be taken to close all 20 stores, we anticipate an exceptional cost of GBP18 million to GBP22 million, of which approximately half will be in cash," the company said.N Brown also reported 0.4% growth in first quarter group revenue. Online revenue increased 3% and its Power Brand online revenue was up 9%."As highlighted in our full-year results, this was a challenging period for fashion retail. Against this backdrop and a double-digit comparative in Product revenue, I am satisfied with our Q1 performance. At this early stage in the financial year our full-year expectations are unchanged," said CEO Angela Spindler.The US Federal Reserve on Wednesday raised its benchmark interest rate to a range of 1.75 to 2.00%, in line with expectations, as unemployment declines and inflation moves to the desired target.The vote of the Federal Open Market Committee was 8-0.The quarter-of-a-percentage-point hike is the second time this year the Fed has increased the rate and comes as the labour market continues to strengthen and economic activity rises at a solid rate.The Fed signalled further rate raises this year, which could lead to dollar strengthening.In a surprise move, the central bank now projects four interest rate hikes in 2018, rather than three. The Fed also dropped wording about rates being "below levels" in the long run."Information received since the Federal Open Market Committee met in May indicates that the labor market has continued to strengthen and that economic activity has been rising at a solid rate. Job gains have been strong, on average, in recent months, and the unemployment rate has declined," the Fed's statement read.In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average down 0.5%, S&P 500 down 0.4% and Nasdaq Composite ending 0.1% down.In US corporate news, cable company Comcast Corp is seeking to pry Twenty-First Century Fox away from The Walt Disney Co, as it made a bid of USD65 billion to thwart Disney's effort to take over the media company on Wednesday. Rupert Murdoch's Fox will have to decide in a board vote on July 10 on which offer it prefers. Disney had previously bid USD52.4 billion for the media wing of Fox, which would not include its news or sports elements, including the flagship Fox News.Comcast has separately announced a conditional all-cash firm offer for the entire issued and to be issued share capital of UK pay-television provider Sky, in which Fox has a large stake.Also in focus for Thursday is the European Central Bank's policy meeting in Riga, Latvia on Thursday, announcing its interest rate decision at 1245 BST. This will be followed by a press conference with ECB President Mario Draghi at 1330 BST.The euro was higher quoted at USD1.1802, against USD1.1773 at the European equities close Wednesday. Still to come in the economic calendar are UK and US retail sales data at 0930 BST and 1330 BST respectively. The Japanese Nikkei 225 index closed down 0.8%. In China, the Shanghai Composite is down 0.4%, while the Hang Seng index in Hong Kong is down 0.9%.