Dame Sharon White to step down as John Lewis chair – reports
John Lewis chair Dame Sharon White is to step down next year, according to reports.
According to the BBC, White will not seek reelection when her five-year term as chair ends in 2024.
White survived a confidence vote at the John Lewis Partnership’s 2023 biannual meeting, amid reports that she was seeking outside investment that would have ended the retailer’s history of being fully employee owned.
The partnership, which also owns Waitrose, reported narrowing losses in the first half of 2023.
UK manufacturing decline continues, but at slower pace
UK manufacturing continued its decline in September, but more slowly than in August, according to an influential business survey.
The S&P Global / CIPS UK Manufacturing Purchasing Managers’ Index for September came to 44.3, slightly above the “flash” reading of 44.2.
That was up from August’s 43.0, but still well below the 50 mark that separates growth from decline.
Dr. John Glen, Chief Economist at the Chartered Institute of Procurement & Supply, said: “Uncertainty in the market and low demand resulted in a difficult end to the quarter for the manufacturing sector, with today’s results putting paid to any hope that falling inflation was a sign of better things to come.
“A subdued global economy and a continued cost-of-living crisis in the UK means the industry is facing the dual challenge of low demand both at home and abroad. New orders and new export business fell in September, causing output to decline for the seventh successive month.”
American salt maker heads to AIM to fuel expansion
A US firm hoping to shake up the salt industry is poised to list on London’s AIM market.
Miami-based MicroSalt, which has developed a low-sodium salt designed to mitigate against the risks of cardiovascular disease, is seeking to raise £10-15 million on the exchange to fuel its expansion plans.
The firm is seeking to attract retail investors to the fund raise, allowing individuals to invest pre-IPO with a minimum £500 commitment.
The global sodium industry is set to be worth almost $10 billion by 2032, according to MicroSalt.
Chancellor gives ‘pay boost for two million’ as living wage increases to £11 an hour
ChancellorJeremy Hunt is expected to use his speech to Tory party conference to confirm an increase in the national living wage to at least £11 an hour from next April.
The Conservatives said the move will benefit two million of the lowest paid, with Mr Hunt also expected to announce ministers will look again at the benefit sanctions regime in a bid to get the unemployed back into work.
It comes as Rishi Sunak resisted calls from fellow Tories to commit to tax cuts in a pre-election giveaway and vowed to prioritise reducing inflation rather than taxes.
BAE leads FTSE 100 higher, United Utilities up 2%
Shares in BAE Systems are the best performing in the FTSE 100 index after the MoD announced £4 billion of funding for the next generation of nuclear-powered attack submarines.
BAE, which rose 22.7p to 1020.5p, was also boosted by analysts at Berenberg raising their recommendation on the shares to “buy” with a new price target of 1170p.
The FTSE 100 rose 18.45 points to 7626.53, with other strongly performing stocks including Burberry and GKN owner Melrose Industries.
United Utilities rose 2% or 16.2p to 964.4p after it presented details of its five-year investment plan, while Tesco rallied 1.8p to 266p ahead of interim results on Wednesday.
The UK-driven FTSE 250 index improved 0.6% or 115.66 points to 18,395.08.
Manolo Blahnik profits more than triple in 2022
Luxury heel maker Manolo Blahnik saw profits more than triple in 2022 as its sales hit a record €118.2 million (£102.4 million).
The business said a rebound in occasion wear after the pandemic helped boost sales, especially in its Hangisi shoe. Towards the end of the year, as the cost-of-living crisis began to take hold, it said simple “investment” pieces such as the Maysale shoe also performed well.
Profit rose to €21.9 million, more than three times the total recorded in the previous year.
CEO Kristina Blahnik said: “We saw another record financial performance in 2022 at Manolo Blahnik Group with sales across all our channels rebounding very strongly and firmly establishing our position in the US market. 2022 was an extraordinary year of consumer demand which will naturally rebalance in 2023 given multiple macro-economic headwinds.
“In celebration of exceeding €100m Group sales for the first time in our history, we were very proud to share an exceptional bonus of over €1m with our Group employees in November 2022, recognising the hard work and dedication of our teams worldwide and their contribution to reaching this milestone.”
Crypto exchange provider Tap Global opens in US
London-listed crypto exchange provider Tap Global today unveiled the next stage in its global expansion plan as it opens to customers in the US.
The firm has partnered with American business Zero Hash and will operate under its existing regulatory license.
The US is the world’s largest cryptocurrency market, estimated to account for 48% of the global market growth between 2022 and 2027, with 17% of all US adults having invested in cryptocurrencies.
It comes during a period of heightened scrutiny of the activities of crypto firms by the US securities regulator.
Tap Global CEO David Carr said: “The US is the biggest cryptocurrency market in the world but has also suffered from the impact of bad actors in the market.
“Tap will offer its new users a secure, regulated and innovative alternative to the platforms currently falling under regulatory scrutiny for their imprudent approach to the safety of consumers and their digital assets.”
US shares seen higher, China activity slows
Wall Street futures are pointing higher and the FTSE 100 index set for a steady start after US legislators avoided a damaging government shutdown.
Saturday’s eleventh-hour funding agreement resets the clock until 17 November, giving traders the chance to refocus on the US economy after Friday’s Federal Reserve preferred measure of inflation showed that price pressures are easing.
On the back of the worst month for US markets so far this year, traders expect key benchmarks to open October in positive territory later.
The FTSE 100 index outperformed Wall Street during September, with CMC Markets forecasting a rise of six points to 7614 at this morning’s opening bell.
The Hong Kong stock market is closed today for the Golden Week holiday but survey data released yesterday showed the composite PMI for China, which measures the manufacturing and services sectors, fell to 50.9 from 51.7 in August.
Nationwide: UK house prices flat in September, down 5.3% year-on-year
House prices in the UK were flat month-on-month in September, but still down 5.3% year-on-year, according to the Nationwide House Price Index.
Prices defied expectations of a 0.4% monthly fall, after a sharp decline in August as the impact of higher interest rates finally appeared to be taking hold.
The average house price is £257,808, according to Nationwide.
In London, house prices fell more slowly, at 3.8% year-on-year, with the average home costing £514,325. That’s a more gentle decline than in June whe the regional index was last published.
Robert Gardner, Nationwide’s Chief Economist, said:
“Housing market activity remains weak, with just 45,400 mortgages approved for house purchase in August, c.30% below the monthly average prevailing in 2019 before the pandemic struck. This relatively subdued picture is not surprising given the more challenging picture for housing affordability. For example, someone earning an average income and purchasing the typical first-time buyer home with a 20% deposit would spend 38% of their take home pay on their monthly mortgage payment – well above the long-run average of 29%.
“However, investors have marked down their expectations for the future path of Bank Rate in recent months amid signs that underlying inflation pressures in the UK economy are finally easing, and with labour market conditions softening.
“This in turn has put downward pressure on longer term interest rates which underpin fixed rate mortgage pricing (see chart below). If sustained, this will ease some of the pressure on those remortgaging or looking to buy a home.”
Recap: Friday’s top stories
Good morning. Here’s a summary of our top headlines from yesterday:
