Ocado to fall out of FTSE 100
Grocery delivery firm Ocado is set to fall out of the FTSE 100 at the start of June, after a sharp fall in its share price in recent months.
The index’s parent company FTSE Russell warned that, based on current share prices, Ocado would no longer be one of London’s top listed companies, and is set to lose its place among blue-chips to Birmingham-based industrials firm IMI.
However, the offical date taken for the new list is 30 May, meaning Ocado could keep its place if it recovers.
FTSE 100 closes down 0.1%
The FTSE 100 closed down 0.1% at 7763, after falling late in the day.
The index had reached a high of 7799 just before US markets opened, only to fall late in the day.
Vodafone was the biggest riser of the day, while RS Group was the biggest faller with a 7.1% drop.
Interest rates ‘to stay higher for longer in order to get grip on inflation’
Interest rates in Britain will likely have to rise further from 4.5 per cent and “remain high for longer” to get a firm grip on inflation, leading economists have warned.
The International Monetary Fund also cautioned against “premature celebrations” that sky-high inflation, which has risen into double figures, has been conquered and said it could “re-emerge or plateau at an elevated rate”.
However, it forecast that the UK would avoid a recession and see economic growth this year, of a miserly 0.4 per cent but better than the 0.3 per cent contraction predicted in April.
Climate change protesters try to storm the stage at tense Shell AGM
A shareholder rebellion against Shell’s board has secured a fifth of votes at a shareholder meeting where climate change protesters tried to storm the stage.
Suit-clad members of the security team in London linked hands to shield chairman Sir Andrew Mackenzie and chief executive Wael Sawan as a handful of protesters attempted to run onto the stage.
Campaign group Fossil Free London later claimed responsibility for the rush, while several other groups also sang songs and chanted slogans against the producer of oil and gas.
Cranswick hails Philippine butcher hires as key in revenue growth as Brexit hits labour supply
Supermarket sausage marker Cranswick said the recruitment of 400 butchers from the Philippines, after it struggled to find skilled workers closer to home, helped it continue to grow its profits despite a year of disruption.
The East Yorkshire-based firm, which has 22 UK facilities employing 13,700 people, said it had been a third year of “unprecedented disruption” but that adjusted profits still rose by 2.3% to £140.1 million.
While the FTSE 250 firm continues to press the case for the UK farming and the wider food producer sector, it said the challenge of finding enough high quality skilled butchers had meant recruiting from the Philippines.
Interest rate hikes trigger 10% writedown of Helical’s London office portfolio
The value of London property developerHelical’s portfolio declined by 10.1% to £839.5 million, but CEO Gerald Kaye pointed out that still meant the company outperformed the average for the Central London market.
The developer, with properties including the JJ Mack Building in Farringdon, made a loss of £64.5 million, due to the writedown of its portfolio. But Kaye pointed out that the decline in value was lower than that experienced by many central London rivals.
US shares slightly higher
Shjares in US companies are slightly higher so far today as investors continue to look for signs of progress towards a deal on the country’s debt ceiling.
Here’s a look at how markets have performed during the first hour of trading on Wall Street.
Match Group and Pfizer have been among the biggest gainers.
Shareholders narrowly vote to approve Wagamama owner The Restaurant Group CEO’s big payout after backlash
Shareholders have narrowly voted to approve the remuneration report of Wagamama owner The Restaurant Group amid fury over a huge payout to its senior management despite widening losses.
A vote on the report was passed by a margin of 55 to 45%, its AGM results show today.
CEO Andy Hornby, who has been at the helm of TRG since 2019, is set to receive a share award worth over £850k on top of his salary after a year in which the Wagamama and Frankie and Benny’s owner posted an £86.8 million loss for 2022, more than double the £35.2 million loss the year before.
According to the company’s annual report, Hornby is set to be awarded shares worth as much as 125% of his salary per the terms of the company’s so-called ‘Restricted Share Plan.’ He stands to be awarded a maximum of £2.7 million in 2023 according to the firm’s annual report, assuming the share price appreciates.
The bar for receiving the full award would appear to be significantly lower than that for share awards for CEOs of other major listed companies: Hornby only needs to avoid allegations of gross misconduct, avoid misstating TRG’s accounts and prevent it going bust to avoid triggering clawback conditions on the payout.
Wagamama are trying to improve the environmental impact of their delivery business
/ PAMarket snapshot: lunchtime update
Ahead of the opening of trading on Wall Street, here’a a look at how markets are performing in the UK at lunchtime.
Tech giant Palantir to cut scores of jobs in London
Tech giant Palantir is planning to axe scores of jobs from its London office, the Standard can reveal.
The Colorado-based data analytics business co-founded by billionaire Peter Thiel is consulting on proposals to slash as many as 75 jobs from the capital. That would represent a cut of just over 12% of its UK workforce, based on employee numbers disclosed in its most recent accounts filed with Companies House.
Last year, the firm was reportedly exploring expanding to open a second UK base in the north of England, possibly near the NHS Digital headquarters in Leeds. But those plans are now under review and a final decision has yet to be taken.
Palantir declined to comment. It follows an earlier round of cuts announced by the business in February, in which it laid off 2% of its global workforce. The firm previously said in a statement: “We believe our company is at an inflection point and to continue to evolve, we are making the tough choice of reducing teams in several areas. These are incredibly painful decisions but the right ones for the company’s future.”
