Sorrell steps down from WPP, HICL Infrastructure joins French university PPP
London open
The FTSE 100 is expected to open four points higher on Monday, having closed up 0.09% at 7,264.56 on Friday.
Stocks to watch
Sir Martin Sorrell has stepped down as chief executive officer of WPP with immediate effect, the advertising behemoth announced over the weekend. Chairman Roberto Quarta would become executive chairman until the appointment of a new CEO. The FTSE 100 company said the previously-announced investigation into an allegation of misconduct against Sorrell had concluded, with the allegation not involving amounts that it called “material”.
Listed infrastructure investment company HICL Infrastructure Company announced an investment in the biology, pharmacy and chemistry department of the Paris-Sud University PPP Project on Monday, taking an 85% ownership interest in the project alongside Bouygues Energies & Services and Bouygues Bâtiment Grand Ouest. The project would involve the design, construction, financing and maintenance of new teaching and research facilities for the university on the Saclay Plateau near Paris. HICL’s total commitment would be up to €21m, including a shareholder loan subscription obligation payable upon construction completion.
Specialty chemicals group Johnson Matthey announced the appointment of Patrick Thomas as chairman, succeeding Tim Stevenson. Thomas, who has been CEO and chairman of the board at polymers business Covestro since 2015, will be appointed as chairman with effect from the end of annual general meeting on 26 July, which is when Stevenson retires after seven years.
Newspaper round-up
Dismal weather kept consumers away from the high street last month, prompting the steepest drop in shopper numbers since the end of 2010. The number of people visiting shops in March dropped 6% compared with the same month last year after strong winds and snow hit the UK. A survey of Visa card users indicated that consumer spending slid 2% in March, rounding off a poor start to the year for the retail sector. - Guardian
A homeowner in a housing complex in London with Grenfell-type cladding has been told the value of her £475,000 home has collapsed and is now just £50,000. Galliard Homes, the developer of the 11-block complex in New Capital Quay in south-east London, is facing a £30m-£40m bill to replace the cladding and is currently locked in a legal dispute over who should pay. - Guardian
The Bank of England has privately warned lenders that the withdrawal of its £127bn cheap funding scheme poses a “systemic risk” to Britain’s financial system. The Term Funding Scheme (TFS) was launched by Bank Governor Mark Carney after the Brexit vote to help keep interest rates low in the real economy, with most lenders gorging themselves on the available funds. – Telegraph
BHP Billiton could gain two years’ breathing space on a huge compensation claim from prosecutors in Brazil over a mining disaster that killed 19 people in 2015. A deadline for striking a new deal with authorities falls on April 20, with BHP and its Brazilian partner Vale hoping to seal an agreement that will for the first time include the government and both state and federal prosecutors. – The Times
The Commonwealth’s business chief has said it would be a “dereliction of duty” if Britain failed to boost exports to member states and persuade them to formally commit to free trade. Pulling together an agreement that endorses trade without tariffs or barriers would be “not that difficult”, Lord Marland, chairman of the Commonwealth Enterprise and Investment Council, said. – The Times
Annual household electricity bills could rise by almost £200, or a third, by 2025 because of increasing wholesale prices and green subsidies, leading analysts have warned. The upward pressure will force the government to increase its energy price cap repeatedly, according to the findings by Aurora Energy Research. This will leave ministers, who condemned leading suppliers last week for increasing energy bills, with the “politically awkward” reality of their own policies forcing up the level of their cap. – The Times
US close
US stocks finished slightly lower heading into the weekend with investors cautious going into the weekend due to the possible launch of missile strikes against Syrian government assets.
By the closing bell, the Dow Jones Industrial Average was down by 0.50% or 122.91 points at 24,360.14, with the S&P 500 off by 0.29% or 7.69 points at 2.656.30 and the Nasdaq Composite down by 0.47% or 33.60 points to 7,106.65.
The yield on the benchmark 10-year US Treasury note was one basis point lower at 2.83%.
Banks fared poorly despite what appeared to be better-than-expected results from heavyweights JP Morgan and Citigroup.
Heading the other way, gold mining rose 2.64%.
Geopolitics remained in focus after UK prime minister Theresa May and US president Donald Trump agreed during a late-night phone conversation that Syria’s suspected use of chemical weapons should not go unchallenged.