BUSINESS LIVE: AstraZeneca increases dividend; Shurgard will buy Lok’nstore; Darktrace improves guidance

London-listed shares are kicking in early trading as investors shift their attention from yesterday’s better-than-expected US inflation data to the European Central Bank’s interest rate decision later today.

Industrial metal miners have added 1 percent as copper prices rise, supported by solid market fundamentals and a retreat in the U.S. dollar.

Markets expect the ECB to maintain its current peak in borrowing costs at its monetary policy meeting later in the day, although this could signal that a rate cut is on the way as early as June.

Among individual stocks, Darktrace is up 8.8 percent after the cybersecurity company raised its annual revenue and margin forecasts for the third time this year.

Lok’NStore is up 16.9 per cent after rival Shurgard agreed to acquire the self-storage company in a deal worth £378m.

AstraZeneca has increased its annual dividend by 7 percent to $3.10 per share as the London-listed drugmaker bets its blockbuster cancer drugs will deliver strong performance and cash generation.

The dividend increase comes as shareholders prepare to vote on the controversial pay package of the company’s CEO later on Thursday at the annual general meeting.

Chairman Michel Demaré said: “This increase is in line with our progressive dividend policy, which remains unchanged, and reflects the continued strength of AstraZeneca’s shareholder investment proposition.”

And the FTSE 250 is up 2.61 points to 19,804.36.

Joost van Leenders, senior investment strategist at Van Lanschot Kempen:

‘We expect a relatively quiet ECB meeting today, with the ECB leaving interest rates unchanged.

‘The ECB has clearly indicated that it wants to see more evidence of moderating wage growth before it is prepared to cut interest rates. With this in mind, she expects to have sufficient evidence by the June meeting, so an initial cut by then is still the most likely scenario for us.

ECB President Lagarde will certainly be asked about the disappointing US inflation figures for March, which make a Fed cut in June unlikely, but she will point out that the ECB focuses exclusively on the eurozone.

‘More interesting will be what the ECB has to say about inflation in the eurozone. According to the seasonally adjusted CPI published by the ECB, core inflation has accelerated this year – another reason to leave rates unchanged at this meeting and wait until June to see how this will develop.’

Darktrace has raised its annual revenue and margin forecasts for the third time this year, after the British cybersecurity company’s revenue rose nearly 27 percent in the third quarter.

The London-listed company has benefited from demand for its services due to an increase in digital attacks and the rise of artificial intelligence. It expects sales from new customers to grow as the economic environment begins to improve.

“We believe the markets in which we operate are emerging from a period of relative economic uncertainty and moving toward an environment where organizations can prioritize proactive cyber defense,” said Chief Financial Officer Cathy Graham.

Accounting giant KPMG was handed the largest fine ever handed out by the US audit watchdog after senior partners and managers cheated on professional exams.

The Big Four’s Dutch division was fined £20 million after hundreds of employees were found to have inappropriately shared answers during mandatory training between 2017 and 2022.

European self-storage company Shurgard has agreed to acquire British-listed rival Lok’nStore in a deal worth £378 million.

Shurgard has agreed to spend £11.10 in cash for each Lok’n Store share, which he says represents a 15.9 percent premium to the London-listed company’s closing price on April 10 .

Andrew Jacobs, Chairman of Lok’nStore, said:

‘The Lok’nStore board believes that the offer represents significant value for Lok’nStore shareholders, recognizing the quality of Lok’nStore’s real estate portfolio and operating strength.

Over the years, Lok’nStore has built up a unique portfolio of purpose-built self-storage assets.

‘We believe that the integration of Lok’nStore’s assets and operations into Shurgard is highly complementary, given the location of the assets and Lok’nStore’s positioning in its markets.

‘I would like to take this opportunity to highlight the contribution of the Lok’nStore team over the years, whose commitment has made it possible to build the company according to the high standards and unique quality of its assets for which it is recognized today, and to ensure a leading positioning in the markets in which it operates.’

Hopes for a rate cut faded yesterday on both sides of the Atlantic after US inflation rose to a higher-than-expected 3.5 percent.

The figures wreaked havoc on financial markets as bond yields soared, stocks on Wall Street tumbled and the pound fell sharply.

Paul Ashworth, chief North America economist at Capital Economics, said the data “virtually kills hopes of a June rate cut” from the Federal Reserve.

AstraZeneca has raised its annual dividend by 7 percent to $3.10 per share as the London-listed drugmaker bets its blockbuster cancer drugs will deliver strong performance and cash generation.

The British-Swedish pharmaceutical company expects total revenue and core earnings per share to rise at rates ranging from low double digits to low teens this year.

“This increase is in line with our progressive dividend policy, which remains unchanged, and reflects the continued strength of AstraZeneca’s investment proposition for shareholders,” said Chairman Michel Demaré.