UK markets opened on a softer note today triggered by weak US markets overnight, on renewed worries over slowing global manufacturing. Data out yesterday showed that US factory orders hit a decade-low.
The FTSE 100 traded 88 points lower at 7,275 while the FTSE 250 traded 145 points or 0.7% lower.
International retailer Tesco (TSCO) surprised the markets today with the news that chief executive Dave Lewis will step down next summer and will be succeeded by Ken Murphy who has held many positions at Walgreen Boots Alliance.
The news overshadowed strong interims for the 26 weeks to 24 August which beat expectations showing a 24.4% rise in operating profits to £1.4bn. The dividend was hiked by 58.7% to 2.65p. Investors seemed to value the economic improvement and marked the shares up 1.5% to 243.5p.
Outgoing chief Lewis commented, ‘Despite challenging external conditions we have delivered a very good start to the year. I'm very pleased to say that we have now delivered every element of the turnaround plan and from this position of strength, the transformation of our business continues at pace.’
Shares in gaming giant Flutter Entertainment (FLTR) were riding high after reporting an agreed, all-share tie-up with Stars Group several years after failed tie-up with William Hill. The shares traded up 14% to £87.17p.
The combination will create a gambling behemoth with revenues of £3.8bn and a market capitalisation of £11bn. Flutter shareholders will end up owning 55% of the new entity. The merger would create a company with leading positions across a number of markets.
Another announcement on management change today was seen at challenger bank Metro (MTRO) as founder Vernon Hill announced that he will step down from the board by the end of the year, as the ‘bank has now reached a size and scale where it is appropriate to appoint an independent chairperson.’ The shares fell 4% on the news to 172.3p.
Veteran investor Martin Gilbert announced that he will leave Standard Life Aberdeen (SLA) next year, ending a career spanning more than three decades at the helm of one of Britain's most successful asset managers. Shares traded off 1% to 280p.
On the up today were shares in digital marketing company Jaywing (JWNG), up a whopping 195% to 7.25p following a trading update that included news that two major shareholders had taken on the company’s existing loan note of £5.2m and secured additional borrowing allowing it to repay its outstanding overdraft.
A full list of today's risers and fallers can be found HERE
